Bill Amendment: IL SB3393 | 2025-2026 | 104th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: OSFM-CONTINUING EDUCATION

Status: 2026-07-02 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB3393 Detail]

Download: Illinois-2025-SB3393-House_Amendment_003.html

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Rep. Jay Hoffman

Filed: 5/28/2026

 

 

 

10400SB3393ham003 LRB104 17748 SPS 38499 a
AMENDMENT TO SENATE BILL 3393
AMENDMENT NO. ______. Amend Senate Bill 3393 by replacing
everything after the enacting clause with the following:
"Section 5. The Freedom of Information Act is amended by
changing Section 7.5 as follows:
(5 ILCS 140/7.5)
(Text of Section before amendment by P.A. 104-441 and
104-457)
Sec. 7.5. Statutory exemptions. To the extent provided for
by the statutes referenced below, the following shall be
exempt from inspection and copying:
(a) All information determined to be confidential
under Section 4002 of the Technology Advancement and
Development Act.
(b) Library circulation and order records identifying
library users with specific materials under the Library

10400SB3393ham003 - 2 - LRB104 17748 SPS 38499 a
Records Confidentiality Act.
(c) Applications, related documents, and medical
records received by the Experimental Organ Transplantation
Procedures Board and any and all documents or other
records prepared by the Experimental Organ Transplantation
Procedures Board or its staff relating to applications it
has received.
(d) Information and records held by the Department of
Public Health and its authorized representatives relating
to known or suspected cases of sexually transmitted
infection or any information the disclosure of which is
restricted under the Illinois Sexually Transmitted
Infection Control Act.
(e) Information the disclosure of which is exempted
under Section 30 of the Radon Industry Licensing Act.
(f) Firm performance evaluations under Section 55 of
the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act.
(g) Information the disclosure of which is restricted
and exempted under Section 50 of the Illinois Prepaid
Tuition Act.
(h) Information the disclosure of which is exempted
under the State Officials and Employees Ethics Act, and
records of any lawfully created State or local inspector
general's office that would be exempt if created or
obtained by an Executive Inspector General's office under

10400SB3393ham003 - 3 - LRB104 17748 SPS 38499 a
that Act.
(i) Information contained in a local emergency energy
plan submitted to a municipality in accordance with a
local emergency energy plan ordinance that is adopted
under Section 11-21.5-5 of the Illinois Municipal Code.
(j) Information and data concerning the distribution
of surcharge moneys collected and remitted by carriers
under the Emergency Telephone System Act.
(k) Law enforcement officer identification information
or driver identification information compiled by a law
enforcement agency or the Department of Transportation
under Section 11-212 of the Illinois Vehicle Code.
(l) Records and information provided to a residential
health care facility resident sexual assault and death
review team or the Executive Council under the Abuse
Prevention Review Team Act.
(m) Information provided to the predatory lending
database created pursuant to Article 3 of the Residential
Real Property Disclosure Act, except to the extent
authorized under that Article.
(n) Defense budgets and petitions for certification of
compensation and expenses for court appointed trial
counsel as provided under Sections 10 and 15 of the
Capital Crimes Litigation Act (repealed). This subsection
(n) shall apply until the conclusion of the trial of the
case, even if the prosecution chooses not to pursue the

10400SB3393ham003 - 4 - LRB104 17748 SPS 38499 a
death penalty prior to trial or sentencing.
(o) Information that is prohibited from being
disclosed under Section 4 of the Illinois Health and
Hazardous Substances Registry Act.
(p) Security portions of system safety program plans,
investigation reports, surveys, schedules, lists, data, or
information compiled, collected, or prepared by or for the
Department of Transportation under Sections 2705-300 and
2705-616 of the Department of Transportation Law of the
Civil Administrative Code of Illinois, the Regional
Transportation Authority under Section 2.11 of the
Regional Transportation Authority Act, or the St. Clair
County Transit District under the Bi-State Transit Safety
Act (repealed).
(q) Information prohibited from being disclosed by the
Personnel Record Review Act.
(r) Information prohibited from being disclosed by the
Illinois School Student Records Act.
(s) Information the disclosure of which is restricted
under Section 5-108 of the Public Utilities Act.
(t) (Blank).
(u) Records and information provided to an independent
team of experts under the Developmental Disability and
Mental Health Safety Act (also known as Brian's Law).
(v) Names and information of people who have applied
for or received Firearm Owner's Identification Cards under

10400SB3393ham003 - 5 - LRB104 17748 SPS 38499 a
the Firearm Owners Identification Card Act or applied for
or received a concealed carry license under the Firearm
Concealed Carry Act, unless otherwise authorized by the
Firearm Concealed Carry Act; and databases under the
Firearm Concealed Carry Act, records of the Concealed
Carry Licensing Review Board under the Firearm Concealed
Carry Act, and law enforcement agency objections under the
Firearm Concealed Carry Act.
(v-5) Records of the Firearm Owner's Identification
Card Review Board that are exempted from disclosure under
Section 10 of the Firearm Owners Identification Card Act.
(w) Personally identifiable information which is
exempted from disclosure under subsection (g) of Section
19.1 of the Toll Highway Act.
(x) Information which is exempted from disclosure
under Section 5-1014.3 of the Counties Code or Section
8-11-21 of the Illinois Municipal Code.
(y) Confidential information under the Adult
Protective Services Act and its predecessor enabling
statute, the Elder Abuse and Neglect Act, including
information about the identity and administrative finding
against any caregiver of a verified and substantiated
decision of abuse, neglect, or financial exploitation of
an eligible adult maintained in the Registry established
under Section 7.5 of the Adult Protective Services Act.
(z) Records and information provided to a fatality

10400SB3393ham003 - 6 - LRB104 17748 SPS 38499 a
review team or the Illinois Fatality Review Team Advisory
Council under Section 15 of the Adult Protective Services
Act.
(aa) Information which is exempted from disclosure
under Section 2.37 of the Wildlife Code.
(bb) Information which is or was prohibited from
disclosure by the Juvenile Court Act of 1987.
(cc) Recordings made under the Law Enforcement
Officer-Worn Body Camera Act, except to the extent
authorized under that Act.
(dd) Information that is prohibited from being
disclosed under Section 45 of the Condominium and Common
Interest Community Ombudsperson Act.
(ee) Information that is exempted from disclosure
under Section 30.1 of the Pharmacy Practice Act.
(ff) Information that is exempted from disclosure
under the Revised Uniform Unclaimed Property Act.
(gg) Information that is prohibited from being
disclosed under Section 7-603.5 of the Illinois Vehicle
Code.
(hh) Records that are exempt from disclosure under
Section 1A-16.7 of the Election Code.
(ii) Information which is exempted from disclosure
under Section 2505-800 of the Department of Revenue Law of
the Civil Administrative Code of Illinois.
(jj) Information and reports that are required to be

10400SB3393ham003 - 7 - LRB104 17748 SPS 38499 a
submitted to the Department of Labor by registering day
and temporary labor service agencies but are exempt from
disclosure under subsection (a-1) of Section 45 of the Day
and Temporary Labor Services Act.
(kk) Information prohibited from disclosure under the
Seizure and Forfeiture Reporting Act.
(ll) Information the disclosure of which is restricted
and exempted under Section 5-30.8 of the Illinois Public
Aid Code.
(mm) Records that are exempt from disclosure under
Section 4.2 of the Crime Victims Compensation Act.
(nn) Information that is exempt from disclosure under
Section 70 of the Higher Education Student Assistance Act.
(oo) Communications, notes, records, and reports
arising out of a peer support counseling session
prohibited from disclosure under the First Responders
Suicide Prevention Act.
(pp) Names and all identifying information relating to
an employee of an emergency services provider or law
enforcement agency under the First Responders Suicide
Prevention Act.
(qq) Information and records held by the Department of
Public Health and its authorized representatives collected
under the Reproductive Health Act.
(rr) Information that is exempt from disclosure under
the Cannabis Regulation and Tax Act.

10400SB3393ham003 - 8 - LRB104 17748 SPS 38499 a
(ss) Data reported by an employer to the Department of
Human Rights pursuant to Section 2-108 of the Illinois
Human Rights Act.
(tt) Recordings made under the Children's Advocacy
Center Act, except to the extent authorized under that
Act.
(uu) Information that is exempt from disclosure under
Section 50 of the Sexual Assault Evidence Submission Act.
(vv) Information that is exempt from disclosure under
subsections (f) and (j) of Section 5-36 of the Illinois
Public Aid Code.
(ww) Information that is exempt from disclosure under
Section 16.8 of the State Treasurer Act.
(xx) Information that is exempt from disclosure or
information that shall not be made public under the
Illinois Insurance Code.
(yy) Information prohibited from being disclosed under
the Illinois Educational Labor Relations Act.
(zz) Information prohibited from being disclosed under
the Illinois Public Labor Relations Act.
(aaa) Information prohibited from being disclosed
under Section 1-167 of the Illinois Pension Code.
(bbb) Information that is prohibited from disclosure
by the Illinois Police Training Act and the Illinois State
Police Act.
(ccc) Records exempt from disclosure under Section

10400SB3393ham003 - 9 - LRB104 17748 SPS 38499 a
2605-304 of the Illinois State Police Law of the Civil
Administrative Code of Illinois.
(ddd) Information prohibited from being disclosed
under Section 35 of the Address Confidentiality for
Victims of Domestic Violence, Sexual Assault, Human
Trafficking, or Stalking Act.
(eee) Information prohibited from being disclosed
under subsection (b) of Section 75 of the Domestic
Violence Fatality Review Act.
(fff) Images from cameras under the Expressway Camera
Act and all automated license plate reader (ALPR)
information used and collected by the Illinois State
Police. "ALPR information" means information gathered by
an ALPR or created from the analysis of data generated by
an ALPR. This subsection (fff) is inoperative on and after
July 1, 2028.
(ggg) Information prohibited from disclosure under
paragraph (3) of subsection (a) of Section 14 of the Nurse
Agency Licensing Act.
(hhh) Information submitted to the Illinois State
Police in an affidavit or application for an assault
weapon endorsement, assault weapon attachment endorsement,
.50 caliber rifle endorsement, or .50 caliber cartridge
endorsement under the Firearm Owners Identification Card
Act.
(iii) Data exempt from disclosure under Section 50 of

10400SB3393ham003 - 10 - LRB104 17748 SPS 38499 a
the School Safety Drill Act.
(jjj) Information exempt from disclosure under Section
30 of the Insurance Data Security Law.
(kkk) Confidential business information prohibited
from disclosure under Section 45 of the Paint Stewardship
Act.
(lll) Data exempt from disclosure under Section
2-3.196 of the School Code.
(mmm) Information prohibited from being disclosed
under subsection (e) of Section 1-129 of the Illinois
Power Agency Act.
(nnn) Materials received by the Department of Commerce
and Economic Opportunity that are confidential under the
Music and Musicians Tax Credit and Jobs Act.
(ooo) Data or information provided pursuant to Section
20 of the Statewide Recycling Needs and Assessment Act.
(ppp) Information that is exempt from disclosure under
Section 28-11 of the Lawful Health Care Activity Act.
(qqq) Information that is exempt from disclosure under
Section 7-101 of the Illinois Human Rights Act.
(rrr) Information prohibited from being disclosed
under Section 4-2 of the Uniform Money Transmission
Modernization Act.
(sss) Information exempt from disclosure under Section
40 of the Student-Athlete Endorsement Rights Act.
(ttt) Audio recordings made under Section 30 of the

10400SB3393ham003 - 11 - LRB104 17748 SPS 38499 a
Illinois State Police Act, except to the extent authorized
under that Section.
(uuu) Information prohibited from being disclosed
under Section 30-5 of the Digital Assets Regulation Act.
(www) Information prohibited from being disclosed
under Section 1505-230 of the Department of Labor Law of
the Civil Administrative Code of Illinois.
(Source: P.A. 103-8, eff. 6-7-23; 103-34, eff. 6-9-23;
103-142, eff. 1-1-24; 103-372, eff. 1-1-24; 103-472, eff.
8-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23; 103-592,
eff. 6-7-24; 103-605, eff. 7-1-24; 103-636, eff. 7-1-24;
103-724, eff. 1-1-25; 103-786, eff. 8-7-24; 103-859, eff.
8-9-24; 103-991, eff. 8-9-24; 103-1049, eff. 8-9-24; 103-1081,
eff. 3-21-25; 104-10, eff. 6-16-25; 104-18, eff. 6-30-25;
104-417, eff. 8-15-25; 104-428, eff. 8-18-25; revised
9-10-25.)
(Text of Section after amendment by P.A. 104-457 but
before 104-441)
Sec. 7.5. Statutory exemptions. To the extent provided for
by the statutes referenced below, the following shall be
exempt from inspection and copying:
(a) All information determined to be confidential
under Section 4002 of the Technology Advancement and
Development Act.
(b) Library circulation and order records identifying

10400SB3393ham003 - 12 - LRB104 17748 SPS 38499 a
library users with specific materials under the Library
Records Confidentiality Act.
(c) Applications, related documents, and medical
records received by the Experimental Organ Transplantation
Procedures Board and any and all documents or other
records prepared by the Experimental Organ Transplantation
Procedures Board or its staff relating to applications it
has received.
(d) Information and records held by the Department of
Public Health and its authorized representatives relating
to known or suspected cases of sexually transmitted
infection or any information the disclosure of which is
restricted under the Illinois Sexually Transmitted
Infection Control Act.
(e) Information the disclosure of which is exempted
under Section 30 of the Radon Industry Licensing Act.
(f) Firm performance evaluations under Section 55 of
the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act.
(g) Information the disclosure of which is restricted
and exempted under Section 50 of the Illinois Prepaid
Tuition Act.
(h) Information the disclosure of which is exempted
under the State Officials and Employees Ethics Act, and
records of any lawfully created State or local inspector
general's office that would be exempt if created or

10400SB3393ham003 - 13 - LRB104 17748 SPS 38499 a
obtained by an Executive Inspector General's office under
that Act.
(i) Information contained in a local emergency energy
plan submitted to a municipality in accordance with a
local emergency energy plan ordinance that is adopted
under Section 11-21.5-5 of the Illinois Municipal Code.
(j) Information and data concerning the distribution
of surcharge moneys collected and remitted by carriers
under the Emergency Telephone System Act.
(k) Law enforcement officer identification information
or driver identification information compiled by a law
enforcement agency or the Department of Transportation
under Section 11-212 of the Illinois Vehicle Code.
(l) Records and information provided to a residential
health care facility resident sexual assault and death
review team or the Executive Council under the Abuse
Prevention Review Team Act.
(m) Information provided to the predatory lending
database created pursuant to Article 3 of the Residential
Real Property Disclosure Act, except to the extent
authorized under that Article.
(n) Defense budgets and petitions for certification of
compensation and expenses for court appointed trial
counsel as provided under Sections 10 and 15 of the
Capital Crimes Litigation Act (repealed). This subsection
(n) shall apply until the conclusion of the trial of the

10400SB3393ham003 - 14 - LRB104 17748 SPS 38499 a
case, even if the prosecution chooses not to pursue the
death penalty prior to trial or sentencing.
(o) Information that is prohibited from being
disclosed under Section 4 of the Illinois Health and
Hazardous Substances Registry Act.
(p) Security portions of system safety program plans,
investigation reports, surveys, schedules, lists, data, or
information compiled, collected, or prepared by or for the
Department of Transportation under Sections 2705-300 and
2705-616 of the Department of Transportation Law of the
Civil Administrative Code of Illinois, the Northern
Illinois Transit Authority under Section 2.11 of the
Northern Illinois Transit Authority Act, or the St. Clair
County Transit District under the Bi-State Transit Safety
Act (repealed).
(q) Information prohibited from being disclosed by the
Personnel Record Review Act.
(r) Information prohibited from being disclosed by the
Illinois School Student Records Act.
(s) Information the disclosure of which is restricted
under Section 5-108 of the Public Utilities Act.
(t) (Blank).
(u) Records and information provided to an independent
team of experts under the Developmental Disability and
Mental Health Safety Act (also known as Brian's Law).
(v) Names and information of people who have applied

10400SB3393ham003 - 15 - LRB104 17748 SPS 38499 a
for or received Firearm Owner's Identification Cards under
the Firearm Owners Identification Card Act or applied for
or received a concealed carry license under the Firearm
Concealed Carry Act, unless otherwise authorized by the
Firearm Concealed Carry Act; and databases under the
Firearm Concealed Carry Act, records of the Concealed
Carry Licensing Review Board under the Firearm Concealed
Carry Act, and law enforcement agency objections under the
Firearm Concealed Carry Act.
(v-5) Records of the Firearm Owner's Identification
Card Review Board that are exempted from disclosure under
Section 10 of the Firearm Owners Identification Card Act.
(w) Personally identifiable information which is
exempted from disclosure under subsection (g) of Section
19.1 of the Toll Highway Act.
(x) Information which is exempted from disclosure
under Section 5-1014.3 of the Counties Code or Section
8-11-21 of the Illinois Municipal Code.
(y) Confidential information under the Adult
Protective Services Act and its predecessor enabling
statute, the Elder Abuse and Neglect Act, including
information about the identity and administrative finding
against any caregiver of a verified and substantiated
decision of abuse, neglect, or financial exploitation of
an eligible adult maintained in the Registry established
under Section 7.5 of the Adult Protective Services Act.

10400SB3393ham003 - 16 - LRB104 17748 SPS 38499 a
(z) Records and information provided to a fatality
review team or the Illinois Fatality Review Team Advisory
Council under Section 15 of the Adult Protective Services
Act.
(aa) Information which is exempted from disclosure
under Section 2.37 of the Wildlife Code.
(bb) Information which is or was prohibited from
disclosure by the Juvenile Court Act of 1987.
(cc) Recordings made under the Law Enforcement
Officer-Worn Body Camera Act, except to the extent
authorized under that Act.
(dd) Information that is prohibited from being
disclosed under Section 45 of the Condominium and Common
Interest Community Ombudsperson Act.
(ee) Information that is exempted from disclosure
under Section 30.1 of the Pharmacy Practice Act.
(ff) Information that is exempted from disclosure
under the Revised Uniform Unclaimed Property Act.
(gg) Information that is prohibited from being
disclosed under Section 7-603.5 of the Illinois Vehicle
Code.
(hh) Records that are exempt from disclosure under
Section 1A-16.7 of the Election Code.
(ii) Information which is exempted from disclosure
under Section 2505-800 of the Department of Revenue Law of
the Civil Administrative Code of Illinois.

10400SB3393ham003 - 17 - LRB104 17748 SPS 38499 a
(jj) Information and reports that are required to be
submitted to the Department of Labor by registering day
and temporary labor service agencies but are exempt from
disclosure under subsection (a-1) of Section 45 of the Day
and Temporary Labor Services Act.
(kk) Information prohibited from disclosure under the
Seizure and Forfeiture Reporting Act.
(ll) Information the disclosure of which is restricted
and exempted under Section 5-30.8 of the Illinois Public
Aid Code.
(mm) Records that are exempt from disclosure under
Section 4.2 of the Crime Victims Compensation Act.
(nn) Information that is exempt from disclosure under
Section 70 of the Higher Education Student Assistance Act.
(oo) Communications, notes, records, and reports
arising out of a peer support counseling session
prohibited from disclosure under the First Responders
Suicide Prevention Act.
(pp) Names and all identifying information relating to
an employee of an emergency services provider or law
enforcement agency under the First Responders Suicide
Prevention Act.
(qq) Information and records held by the Department of
Public Health and its authorized representatives collected
under the Reproductive Health Act.
(rr) Information that is exempt from disclosure under

10400SB3393ham003 - 18 - LRB104 17748 SPS 38499 a
the Cannabis Regulation and Tax Act.
(ss) Data reported by an employer to the Department of
Human Rights pursuant to Section 2-108 of the Illinois
Human Rights Act.
(tt) Recordings made under the Children's Advocacy
Center Act, except to the extent authorized under that
Act.
(uu) Information that is exempt from disclosure under
Section 50 of the Sexual Assault Evidence Submission Act.
(vv) Information that is exempt from disclosure under
subsections (f) and (j) of Section 5-36 of the Illinois
Public Aid Code.
(ww) Information that is exempt from disclosure under
Section 16.8 of the State Treasurer Act.
(xx) Information that is exempt from disclosure or
information that shall not be made public under the
Illinois Insurance Code.
(yy) Information prohibited from being disclosed under
the Illinois Educational Labor Relations Act.
(zz) Information prohibited from being disclosed under
the Illinois Public Labor Relations Act.
(aaa) Information prohibited from being disclosed
under Section 1-167 of the Illinois Pension Code.
(bbb) Information that is prohibited from disclosure
by the Illinois Police Training Act and the Illinois State
Police Act.

10400SB3393ham003 - 19 - LRB104 17748 SPS 38499 a
(ccc) Records exempt from disclosure under Section
2605-304 of the Illinois State Police Law of the Civil
Administrative Code of Illinois.
(ddd) Information prohibited from being disclosed
under Section 35 of the Address Confidentiality for
Victims of Domestic Violence, Sexual Assault, Human
Trafficking, or Stalking Act.
(eee) Information prohibited from being disclosed
under subsection (b) of Section 75 of the Domestic
Violence Fatality Review Act.
(fff) Images from cameras under the Expressway Camera
Act and all automated license plate reader (ALPR)
information used and collected by the Illinois State
Police. "ALPR information" means information gathered by
an ALPR or created from the analysis of data generated by
an ALPR. This subsection (fff) is inoperative on and after
July 1, 2028.
(ggg) Information prohibited from disclosure under
paragraph (3) of subsection (a) of Section 14 of the Nurse
Agency Licensing Act.
(hhh) Information submitted to the Illinois State
Police in an affidavit or application for an assault
weapon endorsement, assault weapon attachment endorsement,
.50 caliber rifle endorsement, or .50 caliber cartridge
endorsement under the Firearm Owners Identification Card
Act.

10400SB3393ham003 - 20 - LRB104 17748 SPS 38499 a
(iii) Data exempt from disclosure under Section 50 of
the School Safety Drill Act.
(jjj) Information exempt from disclosure under Section
30 of the Insurance Data Security Law.
(kkk) Confidential business information prohibited
from disclosure under Section 45 of the Paint Stewardship
Act.
(lll) Data exempt from disclosure under Section
2-3.196 of the School Code.
(mmm) Information prohibited from being disclosed
under subsection (e) of Section 1-129 of the Illinois
Power Agency Act.
(nnn) Materials received by the Department of Commerce
and Economic Opportunity that are confidential under the
Music and Musicians Tax Credit and Jobs Act.
(ooo) Data or information provided pursuant to Section
20 of the Statewide Recycling Needs and Assessment Act.
(ppp) Information that is exempt from disclosure under
Section 28-11 of the Lawful Health Care Activity Act.
(qqq) Information that is exempt from disclosure under
Section 7-101 of the Illinois Human Rights Act.
(rrr) Information prohibited from being disclosed
under Section 4-2 of the Uniform Money Transmission
Modernization Act.
(sss) Information exempt from disclosure under Section
40 of the Student-Athlete Endorsement Rights Act.

10400SB3393ham003 - 21 - LRB104 17748 SPS 38499 a
(ttt) Audio recordings made under Section 30 of the
Illinois State Police Act, except to the extent authorized
under that Section.
(uuu) Information prohibited from being disclosed
under Section 30-5 of the Digital Assets Regulation Act.
(www) Information prohibited from being disclosed
under Section 1505-230 of the Department of Labor Law of
the Civil Administrative Code of Illinois.
(Source: P.A. 103-8, eff. 6-7-23; 103-34, eff. 6-9-23;
103-142, eff. 1-1-24; 103-372, eff. 1-1-24; 103-472, eff.
8-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23; 103-592,
eff. 6-7-24; 103-605, eff. 7-1-24; 103-636, eff. 7-1-24;
103-724, eff. 1-1-25; 103-786, eff. 8-7-24; 103-859, eff.
8-9-24; 103-991, eff. 8-9-24; 103-1049, eff. 8-9-24; 103-1081,
eff. 3-21-25; 104-10, eff. 6-16-25; 104-18, eff. 6-30-25;
104-417, eff. 8-15-25; 104-428, eff. 8-18-25; 104-457, eff.
6-1-26; revised 1-7-26.)
(Text of Section after amendment by P.A. 104-441)
Sec. 7.5. Statutory exemptions. To the extent provided for
by the statutes referenced below, the following shall be
exempt from inspection and copying:
(a) All information determined to be confidential
under Section 4002 of the Technology Advancement and
Development Act.
(b) Library circulation and order records identifying

10400SB3393ham003 - 22 - LRB104 17748 SPS 38499 a
library users with specific materials under the Library
Records Confidentiality Act.
(c) Applications, related documents, and medical
records received by the Experimental Organ Transplantation
Procedures Board and any and all documents or other
records prepared by the Experimental Organ Transplantation
Procedures Board or its staff relating to applications it
has received.
(d) Information and records held by the Department of
Public Health and its authorized representatives relating
to known or suspected cases of sexually transmitted
infection or any information the disclosure of which is
restricted under the Illinois Sexually Transmitted
Infection Control Act.
(e) Information the disclosure of which is exempted
under Section 30 of the Radon Industry Licensing Act.
(f) Firm performance evaluations under Section 55 of
the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act.
(g) Information the disclosure of which is restricted
and exempted under Section 50 of the Illinois Prepaid
Tuition Act.
(h) Information the disclosure of which is exempted
under the State Officials and Employees Ethics Act, and
records of any lawfully created State or local inspector
general's office that would be exempt if created or

10400SB3393ham003 - 23 - LRB104 17748 SPS 38499 a
obtained by an Executive Inspector General's office under
that Act.
(i) Information contained in a local emergency energy
plan submitted to a municipality in accordance with a
local emergency energy plan ordinance that is adopted
under Section 11-21.5-5 of the Illinois Municipal Code.
(j) Information and data concerning the distribution
of surcharge moneys collected and remitted by carriers
under the Emergency Telephone System Act.
(k) Law enforcement officer identification information
or driver identification information compiled by a law
enforcement agency or the Department of Transportation
under Section 11-212 of the Illinois Vehicle Code.
(l) Records and information provided to a residential
health care facility resident sexual assault and death
review team or the Executive Council under the Abuse
Prevention Review Team Act.
(m) Information provided to the predatory lending
database created pursuant to Article 3 of the Residential
Real Property Disclosure Act, except to the extent
authorized under that Article.
(n) Defense budgets and petitions for certification of
compensation and expenses for court appointed trial
counsel as provided under Sections 10 and 15 of the
Capital Crimes Litigation Act (repealed). This subsection
(n) shall apply until the conclusion of the trial of the

10400SB3393ham003 - 24 - LRB104 17748 SPS 38499 a
case, even if the prosecution chooses not to pursue the
death penalty prior to trial or sentencing.
(o) Information that is prohibited from being
disclosed under Section 4 of the Illinois Health and
Hazardous Substances Registry Act.
(p) Security portions of system safety program plans,
investigation reports, surveys, schedules, lists, data, or
information compiled, collected, or prepared by or for the
Department of Transportation under Sections 2705-300 and
2705-616 of the Department of Transportation Law of the
Civil Administrative Code of Illinois, the Northern
Illinois Transit Authority under Section 2.11 of the
Northern Illinois Transit Authority Act, or the St. Clair
County Transit District under the Bi-State Transit Safety
Act (repealed).
(q) Information prohibited from being disclosed by the
Personnel Record Review Act.
(r) Information prohibited from being disclosed by the
Illinois School Student Records Act.
(s) Information the disclosure of which is restricted
under Section 5-108 of the Public Utilities Act.
(t) (Blank).
(u) Records and information provided to an independent
team of experts under the Developmental Disability and
Mental Health Safety Act (also known as Brian's Law).
(v) Names and information of people who have applied

10400SB3393ham003 - 25 - LRB104 17748 SPS 38499 a
for or received Firearm Owner's Identification Cards under
the Firearm Owners Identification Card Act or applied for
or received a concealed carry license under the Firearm
Concealed Carry Act, unless otherwise authorized by the
Firearm Concealed Carry Act; and databases under the
Firearm Concealed Carry Act, records of the Concealed
Carry Licensing Review Board under the Firearm Concealed
Carry Act, and law enforcement agency objections under the
Firearm Concealed Carry Act.
(v-5) Records of the Firearm Owner's Identification
Card Review Board that are exempted from disclosure under
Section 10 of the Firearm Owners Identification Card Act.
(w) Personally identifiable information which is
exempted from disclosure under subsection (g) of Section
19.1 of the Toll Highway Act.
(x) Information which is exempted from disclosure
under Section 5-1014.3 of the Counties Code or Section
8-11-21 of the Illinois Municipal Code.
(y) Confidential information under the Adult
Protective Services Act and its predecessor enabling
statute, the Elder Abuse and Neglect Act, including
information about the identity and administrative finding
against any caregiver of a verified and substantiated
decision of abuse, neglect, or financial exploitation of
an eligible adult maintained in the Registry established
under Section 7.5 of the Adult Protective Services Act.

10400SB3393ham003 - 26 - LRB104 17748 SPS 38499 a
(z) Records and information provided to a fatality
review team or the Illinois Fatality Review Team Advisory
Council under Section 15 of the Adult Protective Services
Act.
(aa) Information which is exempted from disclosure
under Section 2.37 of the Wildlife Code.
(bb) Information which is or was prohibited from
disclosure by the Juvenile Court Act of 1987.
(cc) Recordings made under the Law Enforcement
Officer-Worn Body Camera Act, except to the extent
authorized under that Act.
(dd) Information that is prohibited from being
disclosed under Section 45 of the Condominium and Common
Interest Community Ombudsperson Act.
(ee) Information that is exempted from disclosure
under Section 30.1 of the Pharmacy Practice Act.
(ff) Information that is exempted from disclosure
under the Revised Uniform Unclaimed Property Act.
(gg) Information that is prohibited from being
disclosed under Section 7-603.5 of the Illinois Vehicle
Code.
(hh) Records that are exempt from disclosure under
Section 1A-16.7 of the Election Code.
(ii) Information which is exempted from disclosure
under Section 2505-800 of the Department of Revenue Law of
the Civil Administrative Code of Illinois.

10400SB3393ham003 - 27 - LRB104 17748 SPS 38499 a
(jj) Information and reports that are required to be
submitted to the Department of Labor by registering day
and temporary labor service agencies but are exempt from
disclosure under subsection (a-1) of Section 45 of the Day
and Temporary Labor Services Act.
(kk) Information prohibited from disclosure under the
Seizure and Forfeiture Reporting Act.
(ll) Information the disclosure of which is restricted
and exempted under Section 5-30.8 of the Illinois Public
Aid Code.
(mm) Records that are exempt from disclosure under
Section 4.2 of the Crime Victims Compensation Act.
(nn) Information that is exempt from disclosure under
Section 70 of the Higher Education Student Assistance Act.
(oo) Communications, notes, records, and reports
arising out of a peer support counseling session
prohibited from disclosure under the First Responders
Suicide Prevention Act.
(pp) Names and all identifying information relating to
an employee of an emergency services provider or law
enforcement agency under the First Responders Suicide
Prevention Act.
(qq) Information and records held by the Department of
Public Health and its authorized representatives collected
under the Reproductive Health Act.
(rr) Information that is exempt from disclosure under

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the Cannabis Regulation and Tax Act.
(ss) Data reported by an employer to the Department of
Human Rights pursuant to Section 2-108 of the Illinois
Human Rights Act.
(tt) Recordings made under the Children's Advocacy
Center Act, except to the extent authorized under that
Act.
(uu) Information that is exempt from disclosure under
Section 50 of the Sexual Assault Evidence Submission Act.
(vv) Information that is exempt from disclosure under
subsections (f) and (j) of Section 5-36 of the Illinois
Public Aid Code.
(ww) Information that is exempt from disclosure under
Section 16.8 of the State Treasurer Act.
(xx) Information that is exempt from disclosure or
information that shall not be made public under the
Illinois Insurance Code.
(yy) Information prohibited from being disclosed under
the Illinois Educational Labor Relations Act.
(zz) Information prohibited from being disclosed under
the Illinois Public Labor Relations Act.
(aaa) Information prohibited from being disclosed
under Section 1-167 of the Illinois Pension Code.
(bbb) Information that is prohibited from disclosure
by the Illinois Police Training Act and the Illinois State
Police Act.

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(ccc) Records exempt from disclosure under Section
2605-304 of the Illinois State Police Law of the Civil
Administrative Code of Illinois.
(ddd) Information prohibited from being disclosed
under Section 35 of the Address Confidentiality for
Victims of Domestic Violence, Sexual Assault, Human
Trafficking, or Stalking Act.
(eee) Information prohibited from being disclosed
under subsection (b) of Section 75 of the Domestic
Violence Fatality Review Act.
(fff) Images from cameras under the Expressway Camera
Act and all automated license plate reader (ALPR)
information used and collected by the Illinois State
Police. "ALPR information" means information gathered by
an ALPR or created from the analysis of data generated by
an ALPR. This subsection (fff) is inoperative on and after
July 1, 2028.
(ggg) Information prohibited from disclosure under
paragraph (3) of subsection (a) of Section 14 of the Nurse
Agency Licensing Act.
(hhh) Information submitted to the Illinois State
Police in an affidavit or application for an assault
weapon endorsement, assault weapon attachment endorsement,
.50 caliber rifle endorsement, or .50 caliber cartridge
endorsement under the Firearm Owners Identification Card
Act.

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(iii) Data exempt from disclosure under Section 50 of
the School Safety Drill Act.
(jjj) Information exempt from disclosure under Section
30 of the Insurance Data Security Law.
(kkk) Confidential business information prohibited
from disclosure under Section 45 of the Paint Stewardship
Act.
(lll) Data exempt from disclosure under Section
2-3.196 of the School Code.
(mmm) Information prohibited from being disclosed
under subsection (e) of Section 1-129 of the Illinois
Power Agency Act.
(nnn) Materials received by the Department of Commerce
and Economic Opportunity that are confidential under the
Music and Musicians Tax Credit and Jobs Act.
(ooo) Data or information provided pursuant to Section
20 of the Statewide Recycling Needs and Assessment Act.
(ppp) Information that is exempt from disclosure under
Section 28-11 of the Lawful Health Care Activity Act.
(qqq) Information that is exempt from disclosure under
Section 7-101 of the Illinois Human Rights Act.
(rrr) Information prohibited from being disclosed
under Section 4-2 of the Uniform Money Transmission
Modernization Act.
(sss) Information exempt from disclosure under Section
40 of the Student-Athlete Endorsement Rights Act.

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(ttt) Audio recordings made under Section 30 of the
Illinois State Police Act, except to the extent authorized
under that Section.
(uuu) Information prohibited from being disclosed
under Section 30-5 of the Digital Assets Regulation Act.
(vvv) (uuu) Information exempt from disclosure under
Section 70 of the End-of-Life Options for Terminally Ill
Patients Act.
(www) Information prohibited from being disclosed
under Section 1505-230 of the Department of Labor Law of
the Civil Administrative Code of Illinois.
(Source: P.A. 103-8, eff. 6-7-23; 103-34, eff. 6-9-23;
103-142, eff. 1-1-24; 103-372, eff. 1-1-24; 103-472, eff.
8-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23; 103-592,
eff. 6-7-24; 103-605, eff. 7-1-24; 103-636, eff. 7-1-24;
103-724, eff. 1-1-25; 103-786, eff. 8-7-24; 103-859, eff.
8-9-24; 103-991, eff. 8-9-24; 103-1049, eff. 8-9-24; 103-1081,
eff. 3-21-25; 104-10, eff. 6-16-25; 104-18, eff. 6-30-25;
104-417, eff. 8-15-25; 104-428, eff. 8-18-25; 104-441, eff.
9-12-26; 104-457, eff. 6-1-26; revised 1-7-26.)
Section 10. The Illinois Public Labor Relations Act is
amended by changing Sections 14 and 17 as follows:
(5 ILCS 315/14) (from Ch. 48, par. 1614)
Sec. 14. Security employee, peace officer and fire fighter

10400SB3393ham003 - 32 - LRB104 17748 SPS 38499 a
disputes.
(a) In the case of collective bargaining agreements
involving units of security employees of a public employer,
Peace Officer Units, or units of fire fighters or paramedics,
and in the case of disputes under Section 18, unless the
parties mutually agree to some other time limit, mediation
shall commence 30 days prior to the expiration date of such
agreement or at such later time as the mediation services
chosen under subsection (b) of Section 12 can be provided to
the parties. In the case of negotiations for an initial
collective bargaining agreement, mediation shall commence upon
15 days notice from either party or at such later time as the
mediation services chosen pursuant to subsection (b) of
Section 12 can be provided to the parties. In mediation under
this Section, if either party requests the use of mediation
services from the Federal Mediation and Conciliation Service
or, if the Federal Mediation and Conciliation Service is
unable to provide mediation services, from the Illinois
Department of Labor, the other party shall either join in such
request or bear the additional cost of mediation services from
another source. The mediator shall have a duty to keep the
Board informed on the progress of the mediation. If any
dispute has not been resolved within 15 days after the first
meeting of the parties and the mediator, or within such other
time limit as may be mutually agreed upon by the parties,
either the exclusive representative or employer may request of

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the other, in writing, arbitration, and shall submit a copy of
the request to the Board.
(b) Within 10 days after such a request for arbitration
has been made, the employer shall choose a delegate and the
employees' exclusive representative shall choose a delegate to
a panel of arbitration as provided in this Section. The
employer and employees shall forthwith advise the other and
the Board of their selections.
(c) Within 7 days after the request of either party, the
parties shall request a panel of impartial arbitrators from
which they shall select the neutral chairman according to the
procedures provided in this Section. If the parties have
agreed to a contract that contains a grievance resolution
procedure as provided in Section 8, the chairman shall be
selected using their agreed contract procedure unless they
mutually agree to another procedure. If the parties fail to
notify the Board of their selection of neutral chairman within
7 days after receipt of the list of impartial arbitrators, the
Board shall appoint, at random, a neutral chairman from the
list. In the absence of an agreed contract procedure for
selecting an impartial arbitrator, either party may request a
panel from the Board. Within 7 days of the request of either
party, the Board shall select from the Public Employees Labor
Mediation Roster 7 persons who are on the labor arbitration
panels of either the American Arbitration Association or the
Federal Mediation and Conciliation Service, or who are members

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of the National Academy of Arbitrators, as nominees for
impartial arbitrator of the arbitration panel. The parties may
select an individual on the list provided by the Board or any
other individual mutually agreed upon by the parties. Within 7
days following the receipt of the list, the parties shall
notify the Board of the person they have selected. Unless the
parties agree on an alternate selection procedure, they shall
alternatively strike one name from the list provided by the
Board until only one name remains. A coin toss shall determine
which party shall strike the first name. If the parties fail to
notify the Board in a timely manner of their selection for
neutral chairman, the Board shall appoint a neutral chairman
from the Illinois Public Employees Mediation/Arbitration
Roster.
(d) The chairman shall call a hearing to begin within 15
days and give reasonable notice of the time and place of the
hearing. The hearing shall be held at the offices of the Board
or at such other location as the Board deems appropriate. The
chairman shall preside over the hearing and shall take
testimony. Any oral or documentary evidence and other data
deemed relevant by the arbitration panel may be received in
evidence. The proceedings shall be informal. Technical rules
of evidence shall not apply and the competency of the evidence
shall not thereby be deemed impaired. A verbatim record of the
proceedings shall be made and the arbitrator shall arrange for
the necessary recording service. Transcripts may be ordered at

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the expense of the party ordering them, but the transcripts
shall not be necessary for a decision by the arbitration
panel. The expense of the proceedings, including a fee for the
chairman, shall be borne equally by each of the parties to the
dispute. The delegates, if public officers or employees, shall
continue on the payroll of the public employer without loss of
pay. The hearing conducted by the arbitration panel may be
adjourned from time to time, but unless otherwise agreed by
the parties, shall be concluded within 30 days of the time of
its commencement. Majority actions and rulings shall
constitute the actions and rulings of the arbitration panel.
Arbitration proceedings under this Section shall not be
interrupted or terminated by reason of any unfair labor
practice charge filed by either party at any time.
(e) The arbitration panel may administer oaths, require
the attendance of witnesses, and the production of such books,
papers, contracts, agreements and documents as may be deemed
by it material to a just determination of the issues in
dispute, and for such purpose may issue subpoenas. If any
person refuses to obey a subpoena, or refuses to be sworn or to
testify, or if any witness, party or attorney is guilty of any
contempt while in attendance at any hearing, the arbitration
panel may, or the attorney general if requested shall, invoke
the aid of any circuit court within the jurisdiction in which
the hearing is being held, which court shall issue an
appropriate order. Any failure to obey the order may be

10400SB3393ham003 - 36 - LRB104 17748 SPS 38499 a
punished by the court as contempt.
(f) At any time before the rendering of an award, the
chairman of the arbitration panel, if he is of the opinion that
it would be useful or beneficial to do so, may remand the
dispute to the parties for further collective bargaining for a
period not to exceed 2 weeks. If the dispute is remanded for
further collective bargaining the time provisions of this Act
shall be extended for a time period equal to that of the
remand. The chairman of the panel of arbitration shall notify
the Board of the remand.
(g) At or before the conclusion of the hearing held
pursuant to subsection (d), the arbitration panel shall
identify the economic issues in dispute, and direct each of
the parties to submit, within such time limit as the panel
shall prescribe, to the arbitration panel and to each other
its last offer of settlement on each economic issue. The
determination of the arbitration panel as to the issues in
dispute and as to which of these issues are economic shall be
conclusive. The arbitration panel, within 30 days after the
conclusion of the hearing, or such further additional periods
to which the parties may agree, shall make written findings of
fact and promulgate a written opinion and shall mail or
otherwise deliver a true copy thereof to the parties and their
representatives and to the Board. As to each economic issue,
the arbitration panel shall adopt the last offer of settlement
which, in the opinion of the arbitration panel, more nearly

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complies with the applicable factors prescribed in subsection
(h). The findings, opinions and order as to all other issues
shall be based upon the applicable factors prescribed in
subsection (h).
(h) Where there is no agreement between the parties, or
where there is an agreement but the parties have begun
negotiations or discussions looking to a new agreement or
amendment of the existing agreement, and wage rates or other
conditions of employment under the proposed new or amended
agreement are in dispute, the arbitration panel shall base its
findings, opinions and order upon the following factors, as
applicable:
(1) The lawful authority of the employer.
(2) Stipulations of the parties.
(3) The interests and welfare of the public and the
financial ability of the unit of government to meet those
costs.
(4) Comparison of the wages, hours and conditions of
employment of the employees involved in the arbitration
proceeding with the wages, hours and conditions of
employment of other employees performing similar services
and with other employees generally:
(A) In public employment in comparable
communities.
(B) In private employment in comparable
communities.

10400SB3393ham003 - 38 - LRB104 17748 SPS 38499 a
(5) The average consumer prices for goods and
services, commonly known as the cost of living.
(6) The overall compensation presently received by the
employees, including direct wage compensation, vacations,
holidays and other excused time, insurance and pensions,
medical and hospitalization benefits, the continuity and
stability of employment and all other benefits received.
(7) Changes in any of the foregoing circumstances
during the pendency of the arbitration proceedings.
(8) Such other factors, not confined to the foregoing,
which are normally or traditionally taken into
consideration in the determination of wages, hours and
conditions of employment through voluntary collective
bargaining, mediation, fact-finding, arbitration or
otherwise between the parties, in the public service or in
private employment.
(i) In the case of peace officers, the arbitration
decision shall be limited to wages, hours, and conditions of
employment (which may include residency requirements in
municipalities with a population under 100,000, but those
residency requirements shall not allow residency outside of
Illinois) and shall not include the following: i) residency
requirements in municipalities with a population of at least
100,000; ii) the type of equipment, other than uniforms,
issued or used; iii) manning; iv) the total number of
employees employed by the department; v) mutual aid and

10400SB3393ham003 - 39 - LRB104 17748 SPS 38499 a
assistance agreements to other units of government; and vi)
the criterion pursuant to which force, including deadly force,
can be used; provided, nothing herein shall preclude an
arbitration decision regarding equipment or manning levels if
such decision is based on a finding that the equipment or
manning considerations in a specific work assignment involve a
serious risk to the safety of a peace officer beyond that which
is inherent in the normal performance of police duties.
Limitation of the terms of the arbitration decision pursuant
to this subsection shall not be construed to limit the factors
upon which the decision may be based, as set forth in
subsection (h).
In the case of fire fighter, and fire department or fire
district paramedic matters, the arbitration decision shall be
limited to wages, hours, and conditions of employment
(including manning and also including residency requirements
in municipalities with a population under 1,000,000, but those
residency requirements shall not allow residency outside of
Illinois) and shall not include the following matters: i)
residency requirements in municipalities with a population of
at least 1,000,000; ii) the type of equipment (other than
uniforms and fire fighter turnout gear) issued or used; iii)
the total number of employees employed by the department; iv)
mutual aid and assistance agreements to other units of
government; and v) the criterion pursuant to which force,
including deadly force, can be used; provided, however,

10400SB3393ham003 - 40 - LRB104 17748 SPS 38499 a
nothing herein shall preclude an arbitration decision
regarding equipment levels if such decision is based on a
finding that the equipment considerations in a specific work
assignment involve a serious risk to the safety of a fire
fighter beyond that which is inherent in the normal
performance of fire fighter duties. Limitation of the terms of
the arbitration decision pursuant to this subsection shall not
be construed to limit the facts upon which the decision may be
based, as set forth in subsection (h).
The changes to this subsection (i) made by Public Act
90-385 (relating to residency requirements) do not apply to
persons who are employed by a combined department that
performs both police and firefighting services; these persons
shall be governed by the provisions of this subsection (i)
relating to peace officers, as they existed before the
amendment by Public Act 90-385.
To preserve historical bargaining rights, this subsection
shall not apply to any provision of a fire fighter collective
bargaining agreement in effect and applicable on the effective
date of this Act; provided, however, nothing herein shall
preclude arbitration with respect to any such provision.
(j) Arbitration procedures shall be deemed to be initiated
by the filing of a letter requesting mediation as required
under subsection (a) of this Section. The commencement of a
new municipal fiscal year after the initiation of arbitration
procedures under this Act, but before the arbitration

10400SB3393ham003 - 41 - LRB104 17748 SPS 38499 a
decision, or its enforcement, shall not be deemed to render a
dispute moot, or to otherwise impair the jurisdiction or
authority of the arbitration panel or its decision. Increases
in rates of compensation awarded by the arbitration panel may
be effective only at the start of the fiscal year next
commencing after the date of the arbitration award. If a new
fiscal year has commenced either since the initiation of
arbitration procedures under this Act or since any mutually
agreed extension of the statutorily required period of
mediation under this Act by the parties to the labor dispute
causing a delay in the initiation of arbitration, the
foregoing limitations shall be inapplicable, and such awarded
increases may be retroactive to the commencement of the fiscal
year, any other statute or charter provisions to the contrary,
notwithstanding. At any time the parties, by stipulation, may
amend or modify an award of arbitration.
(k) Orders of the arbitration panel shall be reviewable,
upon appropriate petition by either the public employer or the
exclusive bargaining representative, by the circuit court for
the county in which the dispute arose or in which a majority of
the affected employees reside, but only for reasons that the
arbitration panel was without or exceeded its statutory
authority; the order is arbitrary, or capricious; or the order
was procured by fraud, collusion or other similar and unlawful
means. Such petitions for review must be filed with the
appropriate circuit court within 90 days following the

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issuance of the arbitration order. The pendency of such
proceeding for review shall not automatically stay the order
of the arbitration panel. The party against whom the final
decision of any such court shall be adverse, if such court
finds such appeal or petition to be frivolous, shall pay
reasonable attorneys' fees and costs to the successful party
as determined by said court in its discretion. If said court's
decision affirms the award of money, such award, if
retroactive, shall bear interest at the rate of 12 percent per
annum from the effective retroactive date.
(l) During the pendency of proceedings before the
arbitration panel, existing wages, hours, and other conditions
of employment shall not be changed by action of either party
without the consent of the other but a party may so consent
without prejudice to his rights or position under this Act.
The proceedings are deemed to be pending before the
arbitration panel upon the initiation of arbitration
procedures under this Act.
(m) Security officers of public employers, and Peace
Officers, Fire Fighters and fire department and fire
protection district paramedics, covered by this Section may
not withhold services, nor may public employers lock out or
prevent such employees from performing services at any time.
(n) All of the terms decided upon by the arbitration panel
shall be included in an agreement to be submitted to the public
employer's governing body for ratification and adoption by

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law, ordinance or the equivalent appropriate means.
The governing body shall review each term decided by the
arbitration panel. If the governing body fails to reject one
or more terms of the arbitration panel's decision by a 3/5 vote
of those duly elected and qualified members of the governing
body, within 20 days of issuance, or in the case of
firefighters employed by a state university, at the next
regularly scheduled meeting of the governing body after
issuance, such term or terms shall become a part of the
collective bargaining agreement of the parties. If the
governing body affirmatively rejects one or more terms of the
arbitration panel's decision, it must provide reasons for such
rejection with respect to each term so rejected, within 20
days of such rejection and the parties shall return to the
arbitration panel for further proceedings and issuance of a
supplemental decision with respect to the rejected terms. Any
supplemental decision by an arbitration panel or other
decision maker agreed to by the parties shall be submitted to
the governing body for ratification and adoption in accordance
with the procedures and voting requirements set forth in this
Section. The voting requirements of this subsection shall
apply to all disputes submitted to arbitration pursuant to
this Section notwithstanding any contrary voting requirements
contained in any existing collective bargaining agreement
between the parties.
(o) If the governing body of the employer votes to reject

10400SB3393ham003 - 44 - LRB104 17748 SPS 38499 a
the panel's decision, the parties shall return to the panel
within 30 days from the issuance of the reasons for rejection
for further proceedings and issuance of a supplemental
decision. All reasonable costs of such supplemental proceeding
including the exclusive representative's reasonable attorney's
fees, as established by the Board, shall be paid by the
employer.
(p) Notwithstanding the provisions of this Section the
employer and exclusive representative may agree to submit
unresolved disputes concerning wages, hours, terms and
conditions of employment to an alternative form of impasse
resolution.
The amendatory changes to this Section made by Public Act
101-652 take effect July 1, 2022.
(Source: P.A. 101-652, eff. 7-1-21; 102-28, eff. 6-25-21.)
(5 ILCS 315/17) (from Ch. 48, par. 1617)
Sec. 17. Right to strike.
(a) Nothing in this Act shall make it unlawful or make it
an unfair labor practice for public employees, other than
security employees, as defined in Section 3(p), peace
officers, fire fighters, and paramedics employed by fire
departments and fire protection districts, to strike except as
otherwise provided in this Act. Public employees who are
permitted to strike may strike only if:
(1) the employees are represented by an exclusive

10400SB3393ham003 - 45 - LRB104 17748 SPS 38499 a
bargaining representative;
(2) the collective bargaining agreement between the
public employer and the public employees, if any, has
expired, or such collective bargaining agreement does not
prohibit the strike;
(3) the public employer and the labor organization
have not mutually agreed to submit the disputed issues to
final and binding arbitration;
(4) the exclusive representative has requested a
mediator pursuant to Section 12 for the purpose of
mediation or conciliation of a dispute between the public
employer and the exclusive representative and mediation
has been used; and
(5) at least 5 days have elapsed after a notice of
intent to strike has been given by the exclusive
bargaining representative to the public employer.
In mediation under this Section, if either party requests
the use of mediation services from the Federal Mediation and
Conciliation Service or, if the Federal Mediation and
Conciliation Service is unable to provide mediation services,
from the Illinois Department of Labor, the other party shall
either join in such request or bear the additional cost of
mediation services from another source.
(b) An employee who participates in a strike, work
stoppage or slowdown, in violation of this Act shall be
subject to discipline by the employer. No employer may pay or

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cause such employee to be paid any wages or other compensation
for such periods of participation, except for wages or
compensation earned before participation in such strike.
(Source: P.A. 86-412.)
Section 15. The Department of Labor Law of the Civil
Administrative Code of Illinois is amended by adding Section
1505-230 as follows:
(20 ILCS 1505/1505-230 new)
Sec. 1505-230. Labor mediation services program.
(a) Subject to appropriation, no later than 120 days after
the effective date of this amendatory Act of the 104th General
Assembly, the Department shall establish a labor mediation
services program to facilitate the settlement of disputes
between employers and labor organizations. The program shall
be operated independently of all divisions of the Department.
A party to a controversy between an employer and a labor
organization may invoke the services of the Department under
the program, or the Department may proffer its services under
the program, in circumstances involving grievances arising
under a collective bargaining agreement or the negotiation of
an initial or successor collective bargaining agreement
between an employer and a labor organization concerning wages,
hours, or conditions of employment.
(b) If the Federal Mediation and Conciliation Service is

10400SB3393ham003 - 47 - LRB104 17748 SPS 38499 a
unable to provide mediation services and the services of the
Department have been invoked by a party or have been proffered
by the Department, then the Department shall assign a mediator
appointed under subsection (d) to facilitate a settlement to
the dispute. All information disclosed by a party to a
mediator in the performance of mediation functions under the
program shall not be divulged unless required by law.
(c) The Department may establish policies granting
priority services under the program to: (i) bargaining units
for which mediation is a statutory requirement, (ii) disputes
involving initial or successor collective bargaining
agreements, (iii) disputes involving the health and safety of
the public, (iv) disputes that both parties certify may result
in a lockout or strike, or (v) any other matters deemed to be
of significance by the Department.
(d) The Department may appoint mediators who have
demonstrated experience in labor and employment matters.
Mediators may be appointed to a term of 2 years beginning on
the effective date of the appointment or renewal. Mediators
may be removed by the Director during the term only for good
cause, including, but not limited to, incompetency,
dereliction of duty, malfeasance, misfeasance, or nonfeasance.
The Director may elect to renew the term of a mediator upon the
expiration of the term. The Department may provide for
compensation for mediators appointed under this Section. The
mediators appointed under this Section shall not be subject to

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the Personnel Code.
(e) All mediation communications, including, but not
limited to, files, records, reports, documents, or other
papers received or prepared by a mediator as part of the
program, shall be classified as confidential and shall be
exempt from disclosure under Section 7.5 of the Freedom of
Information Act. The mediator shall not produce any
confidential records of, or testify in regard to, any
mediation conducted by the mediator in any civil or
administrative proceeding.
(f) No later than December 31, 2027, the Department shall
submit a report to the General Assembly summarizing initial
aggregate data for the program, including the number of
mediations performed and the outcome of those mediations. As
part of the report, the Department shall consult with
representatives of labor and employers to outline possible
improvements to the program and provide recommendations for
improvements as the Director deems appropriate.
Section 20. The Illinois Housing Development Act is
amended by changing Section 7.28 as follows:
(20 ILCS 3805/7.28)
Sec. 7.28. Tax credit for donation to sponsors. The
Authority may administer and adopt rules for an affordable
housing tax donation credit program to provide tax credits for

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donations as set forth in this Section.
(a) In this Section:
"Administrative housing agency" means either the Authority
or an agency of the City of Chicago.
"Affordable housing project" means either:
(1) a rental project in which at least 25% of the units
have rents (including tenant-paid heat) that do not
exceed, on a monthly basis, maximum gross rent figures, as
published by the Authority, that are:
(i) based on data published annually by the U.S.
Department of Housing and Urban Development;
(ii) based on the annual income of households
earning 60% of the area median income;
(iii) computed using a 30% of gross monthly income
standard; and
(iv) adjusted for unit size and at least 25% of the
units are occupied by persons and families whose
incomes do not exceed 60% of the median family income
for the geographic area in which the residential unit
is located; or
(2) a unit for sale to homebuyers whose gross
household income is at or below (A) 60% of the area median
income (for taxable years beginning prior to January 1,
2022) or (B) 120% of the area median income (for taxable
years beginning on or after January 1, 2022) and who pay no
more than 30% of their gross household income for mortgage

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principal, interest, property taxes, and property
insurance (PITI).
"Donation" means money, securities, or real or personal
property that is donated to a not-for-profit sponsor that is
used solely for costs associated with either (i) purchasing,
constructing, or rehabilitating an affordable housing project
in this State, (ii) an employer-assisted housing project in
this State, (iii) general operating support, or (iv) technical
assistance as defined by this Section.
"Employer-assisted housing project" means either
down-payment assistance, reduced-interest mortgages, mortgage
guarantee programs, rental subsidies, or individual
development account savings plans that are provided by
employers to employees to assist in securing affordable
housing near the workplace, that are restricted to housing
near the workplace, and that are restricted to employees whose
gross household income is at or below 120% of the area median
income.
"General operating support" means any cost incurred by a
sponsor that is a part of its general program costs and is not
limited to costs directly incurred by the affordable housing
project.
"Geographical area" means the metropolitan area or county
designated as an area by the federal Department of Housing and
Urban Development under Section 8 of the United States Housing
Act of 1937, as amended, for purposes of determining fair

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market rental rates.
"Median income" means the incomes that are determined by
the federal Department of Housing and Urban Development
guidelines and adjusted for family size.
"Project" means an affordable housing project, an
employer-assisted housing project, general operating support,
or technical assistance.
"Sponsor" means a not-for-profit organization that (i) is
organized as a not-for-profit organization under the laws of
this State or another state and (1) for an affordable housing
project, has as one of its purposes the development of
affordable housing; (2) for an employer-assisted housing
project, has as one of its purposes home ownership education;
and (3) for a technical assistance project, has as one of its
purposes either the development of affordable housing or home
ownership education; (ii) is organized for the purpose of
constructing or rehabilitating affordable housing units and
has been issued a ruling from the Internal Revenue Service of
the United States Department of the Treasury that the
organization is exempt from income taxation under provisions
of the Internal Revenue Code; or (iii) is an organization
designated as a community development corporation by the
United States government under Title VII of the Economic
Opportunity Act of 1964.
"Tax credit" means a tax credit allowed under Section 214
of the Illinois Income Tax Act.

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"Technical assistance" means any cost incurred by a
sponsor for project planning, assistance with applying for
financing, or counseling services provided to prospective
homebuyers.
(b) A sponsor must apply to an administrative housing
agency for approval of the project. The administrative housing
agency must reserve a specific amount of tax credits for each
approved project. Tax credits for general operating support
can only be reserved as part of a reservation of tax credits
for an affordable housing project, an employer-assisted
housing project, or technical assistance. No tax credits shall
be allowed for a project without a reservation of such tax
credits by an administrative housing agency for that project.
(c) The Authority must adopt rules establishing criteria
for eligible costs and donations, issuing and verifying tax
credits, and selecting projects that are eligible for a tax
credit. The Authority shall notify sponsors and donors that
any project funded in part through the sale or transfer of the
credit, when the sale or transfer occurs before construction
begins and is made under subsection (c) of Section 214 of the
Illinois Income Tax Act, qualifies as a public work under the
Prevailing Wage Act.
(d) Tax credits for employer-assisted housing projects are
limited to that pool of tax credits that have been set aside
for employer-assisted housing. Tax credits for general
operating support are limited to 10% of the total tax credit

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reservation for the related project (other than general
operating support) and are also limited to that pool of tax
credits that have been set aside for general operating
support. Tax credits for technical assistance are limited to
that pool of tax credits that have been set aside for technical
assistance.
(e) The amount of tax credits reserved by the
administrative housing agency for an approved project is
limited to $32,850,352 in State fiscal years 2022 and 2023 and
shall increase by 5% each fiscal year thereafter. The City of
Chicago shall receive 24.5% of total tax credits authorized
for each fiscal year. The Authority shall receive the balance
of the tax credits authorized for each fiscal year. The tax
credits may be used anywhere in this State. The tax credits
have the following set-asides:
(1) for employer-assisted housing projects, $2
million; and
(2) for general operating support and technical
assistance, $1 million.
The balance of the funds must be used for affordable
housing projects. During the first 9 months of a fiscal year,
if an administrative housing agency is unable to reserve the
tax credits set aside for the purposes described in subsection
(e), the administrative housing agency may reserve the tax
credits for any approved projects.
(f) The administrative housing agency that reserves tax

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credits for an affordable housing project must record against
the land upon which the affordable housing project is located
an instrument to assure that the property maintains its
affordable housing compliance for a minimum of 10 years. The
Authority has flexibility to assure that the instrument does
not cause undue hardship on homeowners.
(Source: P.A. 102-175, eff. 7-29-21.)
Section 25. The Illinois Power Agency Act is amended by
changing Section 1-75 as follows:
(20 ILCS 3855/1-75)
(Text of Section before amendment by P.A. 104-458)
Sec. 1-75. Planning and Procurement Bureau. The Planning
and Procurement Bureau has the following duties and
responsibilities:
(a) The Planning and Procurement Bureau shall each year,
beginning in 2008, develop procurement plans and conduct
competitive procurement processes in accordance with the
requirements of Section 16-111.5 of the Public Utilities Act
for the eligible retail customers of electric utilities that
on December 31, 2005 provided electric service to at least
100,000 customers in Illinois. Beginning with the delivery
year commencing on June 1, 2017, the Planning and Procurement
Bureau shall develop plans and processes for the procurement
of zero emission credits from zero emission facilities in

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accordance with the requirements of subsection (d-5) of this
Section. Beginning on the effective date of this amendatory
Act of the 102nd General Assembly, the Planning and
Procurement Bureau shall develop plans and processes for the
procurement of carbon mitigation credits from carbon-free
energy resources in accordance with the requirements of
subsection (d-10) of this Section. The Planning and
Procurement Bureau shall also develop procurement plans and
conduct competitive procurement processes in accordance with
the requirements of Section 16-111.5 of the Public Utilities
Act for the eligible retail customers of small
multi-jurisdictional electric utilities that (i) on December
31, 2005 served less than 100,000 customers in Illinois and
(ii) request a procurement plan for their Illinois
jurisdictional load. This Section shall not apply to a small
multi-jurisdictional utility until such time as a small
multi-jurisdictional utility requests the Agency to prepare a
procurement plan for their Illinois jurisdictional load. For
the purposes of this Section, the term "eligible retail
customers" has the same definition as found in Section
16-111.5(a) of the Public Utilities Act.
Beginning with the plan or plans to be implemented in the
2017 delivery year, the Agency shall no longer include the
procurement of renewable energy resources in the annual
procurement plans required by this subsection (a), except as
provided in subsection (q) of Section 16-111.5 of the Public

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Utilities Act, and shall instead develop a long-term renewable
resources procurement plan in accordance with subsection (c)
of this Section and Section 16-111.5 of the Public Utilities
Act.
In accordance with subsection (c-5) of this Section, the
Planning and Procurement Bureau shall oversee the procurement
by electric utilities that served more than 300,000 retail
customers in this State as of January 1, 2019 of renewable
energy credits from new utility-scale solar projects to be
installed, along with energy storage facilities, at or
adjacent to the sites of electric generating facilities that,
as of January 1, 2016, burned coal as their primary fuel
source.
(1) The Agency shall each year, beginning in 2008, as
needed, issue a request for qualifications for experts or
expert consulting firms to develop the procurement plans
in accordance with Section 16-111.5 of the Public
Utilities Act. In order to qualify an expert or expert
consulting firm must have:
(A) direct previous experience assembling
large-scale power supply plans or portfolios for
end-use customers;
(B) an advanced degree in economics, mathematics,
engineering, risk management, or a related area of
study;
(C) 10 years of experience in the electricity

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

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Energy Regulatory Commission and regional transmission
organizations;
(E) expertise in credit and contract protocols;
(F) adequate resources to perform and fulfill the
required functions and responsibilities; and
(G) the absence of a conflict of interest and
inappropriate bias for or against potential bidders or
the affected electric utilities.
(3) The Agency shall provide affected utilities and
other interested parties with the lists of qualified
experts or expert consulting firms identified through the
request for qualifications processes that are under
consideration to develop the procurement plans and to
serve as the procurement administrator. The Agency shall
also provide each qualified expert's or expert consulting
firm's response to the request for qualifications. All
information provided under this subparagraph shall also be
provided to the Commission. The Agency may provide by rule
for fees associated with supplying the information to
utilities and other interested parties. These parties
shall, within 5 business days, notify the Agency in
writing if they object to any experts or expert consulting
firms on the lists. Objections shall be based on:
(A) failure to satisfy qualification criteria;
(B) identification of a conflict of interest; or
(C) evidence of inappropriate bias for or against

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potential bidders or the affected utilities.
The Agency shall remove experts or expert consulting
firms from the lists within 10 days if there is a
reasonable basis for an objection and provide the updated
lists to the affected utilities and other interested
parties. If the Agency fails to remove an expert or expert
consulting firm from a list, an objecting party may seek
review by the Commission within 5 days thereafter by
filing a petition, and the Commission shall render a
ruling on the petition within 10 days. There is no right of
appeal of the Commission's ruling.
(4) The Agency shall issue requests for proposals to
the qualified experts or expert consulting firms to
develop a procurement plan for the affected utilities and
to serve as procurement administrator.
(5) The Agency shall select an expert or expert
consulting firm to develop procurement plans based on the
proposals submitted and shall award contracts of up to 5
years to those selected.
(6) The Agency shall select an expert or expert
consulting firm, with approval of the Commission, to serve
as procurement administrator based on the proposals
submitted. If the Commission rejects, within 5 days, the
Agency's selection, the Agency shall submit another
recommendation within 3 days based on the proposals
submitted. The Agency shall award a 5-year contract to the

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expert or expert consulting firm so selected with
Commission approval.
(b) The experts or expert consulting firms retained by the
Agency shall, as appropriate, prepare procurement plans, and
conduct a competitive procurement process as prescribed in
Section 16-111.5 of the Public Utilities Act, to ensure
adequate, reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability, for
eligible retail customers of electric utilities that on
December 31, 2005 provided electric service to at least
100,000 customers in the State of Illinois, and for eligible
Illinois retail customers of small multi-jurisdictional
electric utilities that (i) on December 31, 2005 served less
than 100,000 customers in Illinois and (ii) request a
procurement plan for their Illinois jurisdictional load.
(c) Renewable portfolio standard.
(1)(A) The Agency shall develop a long-term renewable
resources procurement plan that shall include procurement
programs and competitive procurement events necessary to
meet the goals set forth in this subsection (c). The
initial long-term renewable resources procurement plan
shall be released for comment no later than 160 days after
June 1, 2017 (the effective date of Public Act 99-906).
The Agency shall review, and may revise on an expedited
basis, the long-term renewable resources procurement plan

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at least every 2 years, which shall be conducted in
conjunction with the procurement plan under Section
16-111.5 of the Public Utilities Act to the extent
practicable to minimize administrative expense. No later
than 120 days after the effective date of this amendatory
Act of the 103rd General Assembly, the Agency shall
release for comment a revision to the long-term renewable
resources procurement plan, updating elements of the most
recently approved plan as needed to comply with this
amendatory Act of the 103rd General Assembly, and any
long-term renewable resources procurement plan update
published by the Agency but not yet approved by the
Illinois Commerce Commission shall be withdrawn. The
long-term renewable resources procurement plans shall be
subject to review and approval by the Commission under
Section 16-111.5 of the Public Utilities Act.
(B) Subject to subparagraph (F) of this paragraph (1),
the long-term renewable resources procurement plan shall
attempt to meet the goals for procurement of renewable
energy credits at levels of at least the following overall
percentages: 13% by the 2017 delivery year; increasing by
at least 1.5% each delivery year thereafter to at least
25% by the 2025 delivery year; increasing by at least 3%
each delivery year thereafter to at least 40% by the 2030
delivery year, and continuing at no less than 40% for each
delivery year thereafter. The Agency shall attempt to

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

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

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

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photovoltaic projects. Of the amount to be procured
from photovoltaic projects, the Agency shall procure:
at least 50% from solar photovoltaic projects using
the program outlined in subparagraph (K) of this
paragraph (1) from distributed renewable energy
generation devices or community renewable generation
projects; at least 47% from utility-scale solar
projects; at least 3% from brownfield site
photovoltaic projects that are not community renewable
generation projects. The Agency may propose
adjustments to these percentages, including
establishing percentage-based goals for the
procurement of renewable energy credits from
modernized or retooled hydropower facilities and
repowered wind projects, through its long-term
renewable resources plan described in subparagraph (A)
of this paragraph (1) as necessary based on developer
interest, market conditions, budget considerations,
resource adequacy needs, or other factors.
In developing the long-term renewable resources
procurement plan, the Agency shall consider other
approaches, in addition to competitive procurements,
that can be used to procure renewable energy credits
from brownfield site photovoltaic projects and thereby
help return blighted or contaminated land to
productive use while enhancing public health and the

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well-being of Illinois residents, including those in
environmental justice communities, as defined using
existing methodologies and findings used by the Agency
and its Administrator in its Illinois Solar for All
Program. The Agency shall also consider other
approaches, in addition to competitive procurements,
to procure renewable energy credits from new and
existing hydropower facilities to support the
development and maintenance of these facilities. The
Agency shall explore options to convert existing dams
but shall not consider approaches to develop new dams
where they do not already exist. To encourage the
continued operation of utility-scale wind projects,
the Agency shall consider and may propose other
approaches in addition to competitive procurements to
procure renewable energy credits from repowered wind
projects.
(ii) In any given delivery year, if forecasted
expenses are less than the maximum budget available
under subparagraph (E) of this paragraph (1), the
Agency shall continue to procure new renewable energy
credits until that budget is exhausted in the manner
outlined in item (i) of this subparagraph (C).
(iii) For purposes of this Section:
"New wind projects" means wind renewable energy
facilities that are energized after June 1, 2017 for

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the delivery year commencing June 1, 2017.
"New photovoltaic projects" means photovoltaic
renewable energy facilities that are energized after
June 1, 2017. Photovoltaic projects developed under
Section 1-56 of this Act shall not apply towards the
new photovoltaic project requirements in this
subparagraph (C).
"Repowered wind projects" means utility-scale wind
projects featuring the removal, replacement, or
expansion of turbines at an existing project site, as
defined in the long-term renewable resources
procurement plan, after the effective date of this
amendatory Act of the 103rd General Assembly.
Renewable energy credit contract awards used to
support repowered wind projects shall only cover the
incremental increase in facility electricity
production resultant from repowering.
For purposes of calculating whether the Agency has
procured enough new wind and solar renewable energy
credits required by this subparagraph (C), renewable
energy facilities that have a multi-year renewable
energy credit delivery contract with the utility
through at least delivery year 2030 shall be
considered new, however no renewable energy credits
from contracts entered into before June 1, 2021 shall
be used to calculate whether the Agency has procured

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

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

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service expressed on a per kilowatthour basis. For
purposes of this subsection (c), the total amount paid for
electric service includes without limitation amounts paid
for supply, transmission, capacity, distribution,
surcharges, and add-on taxes.
Notwithstanding the requirements of this subsection
(c), and except as provided in subparagraph (E-5) of
paragraph (1) of this subsection (c), the total of
renewable energy resources procured under the procurement
plan for any single year shall be subject to the
limitations of this subparagraph (E). Such procurement
shall be reduced for all retail customers based on the
amount necessary to limit the annual estimated average net
increase due to the costs of these resources included in
the amounts paid by eligible retail customers in
connection with electric service to no more than 4.25% of
the amount paid per kilowatthour by those customers during
the year ending May 31, 2009. To arrive at a maximum dollar
amount of renewable energy resources to be procured for
the particular delivery year, the resulting per
kilowatthour amount shall be applied to the actual amount
of kilowatthours of electricity delivered, or applicable
portion of such amount as specified in paragraph (1) of
this subsection (c), as applicable, by the electric
utility in the delivery year immediately prior to the
procurement to all retail customers in its service

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territory. The calculations required by this subparagraph
(E) shall be made only once for each delivery year at the
time that the renewable energy resources are procured.
Once the determination as to the amount of renewable
energy resources to procure is made based on the
calculations set forth in this subparagraph (E) and the
contracts procuring those amounts are executed between the
seller and applicable electric utility, no subsequent rate
impact determinations shall be made and no adjustments to
those contract amounts shall be allowed. As provided in
subparagraph (E-5) of paragraph (1) of this subsection
(c), the seller shall be entitled to full, prompt, and
uninterrupted payment under the applicable contract
notwithstanding the application of this subparagraph (E),
and all costs incurred under such contracts shall be fully
recoverable by the electric utility as provided in this
Section.
(E-5) If, for a particular delivery year, the
limitation on the amount of renewable energy resources to
be procured, as calculated pursuant to subparagraph (E) of
paragraph (1) of this subsection (c), would result in an
insufficient collection of funds to fully pay amounts due
to a seller under existing contracts executed under this
Section or executed under Section 1-56 of this Act, then
the following provisions shall apply to ensure full and
uninterrupted payment is made to such seller or sellers:

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(i) If the electric utility has retained unspent
funds in an interest-bearing account as prescribed in
subsection (k) of Section 16-108 of the Public
Utilities Act, then the utility shall use those funds
to remit full payment to the sellers to ensure prompt
and uninterrupted payment of existing contractual
obligation.
(ii) If the funds described in item (i) of this
subparagraph (E-5) are insufficient to satisfy all
existing contractual obligations, then the electric
utility shall, nonetheless, remit full payment to the
sellers to ensure prompt and uninterrupted payment of
existing contractual obligations, provided that the
full costs shall be recoverable by the utility in
accordance with part (ee) of item (iv) of this
subsection (E-5).
(iii) The Agency shall promptly notify the
Commission that existing contractual obligations are
reasonably expected to exceed the maximum collection
authorized under subparagraph (E) of paragraph (1) of
this subsection (c) for the applicable delivery year.
The Agency shall also explain and confirm how the
operation of items (i) and (ii) of this subparagraph
(E-5) ensures that the electric utility will continue
to make prompt and uninterrupted payment under
existing contractual obligations. The Agency shall

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provide this information to the Commission through a
notice filed in the Commission docket approving the
Agency's operative Long-Term Renewable Resources
Procurement Plan that includes the applicable delivery
year.
(iv) The Agency shall suspend or reduce new
contract awards for the procurement of renewable
energy credits until an Agency determination is made
under subparagraph (E) that additional procurements
would not cause the rate impact limitation of
subparagraph (E) to be exceeded. At least once
annually after the notice provided for in item (iii)
of this subparagraph (E-5) is made, the Agency shall
analyze existing contract obligations, projected
prices for indexed renewable energy credit contracts
executed under item (v) of subparagraph (G) of
paragraph (1) of subsection (c) of Section 1-75 of
this Act, and expected collections authorized under
subparagraph (E) to determine whether and to what
extent the limitations of subparagraph (E) would be
exceeded by additional renewable energy credit
procurement contract awards.
(aa) If the Agency determines that additional
renewable energy credit procurement contract
awards could be made without exceeding the
limitations of subparagraph (E), then the

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procurements shall be authorized at a scale
determined not to exceed the limitations of
subparagraph (E) in a manner consistent with the
priorities of this Section.
(bb) If the Agency determines that additional
renewable energy credit procurement contract
awards cannot be made without exceeding the
limitations of subparagraph (E), then the Agency
shall suspend any new contract awards for the
procurement of renewable energy credits until a
new rate impact determination is made under
subparagraph (E).
(cc) Agency determinations made under this
item (iv) shall be detailed and comprehensive and,
if not made through the Agency's Long-Term
Renewable Resources Procurement Plan, shall be
filed as a compliance filing in the most recent
docketed proceeding approving the Agency's
Long-Term Renewable Resources Procurement Plan.
(dd) With respect to the procurement of
renewable energy credits authorized through
programs administered under subsection (b) of
Section 1-56 and subparagraphs (K) through (M) of
paragraph (1) of subsection (k) of Section 1-75 of
this Act, the award of contracts for the
procurement of renewable energy credits shall be

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suspended or reduced only at the conclusion of the
program year in which the notice provided for
under item (iii) of this subparagraph (E-5) is
made.
(ee) The contract shall provide that, so long
as at least one of: (i) the cost recovery
mechanisms referenced in subsection (k) of Section
16-108 and subsection (l) of Section 16-111.5 of
the Public Utilities Act remains in full force
without limitation or (ii) the utility is
otherwise authorized and or entitled to full,
prompt, and uninterrupted recovery of its costs
through any other mechanism, then such seller
shall be entitled to full, prompt, and
uninterrupted payment under the applicable
contract notwithstanding the application of this
subparagraph (E).
(F) If the limitation on the amount of renewable
energy resources procured in subparagraph (E) of this
paragraph (1) prevents the Agency from meeting all of the
goals in this subsection (c), the Agency's long-term plan
shall prioritize compliance with the requirements of this
subsection (c) regarding renewable energy credits in the
following order:
(i) renewable energy credits under existing
contractual obligations as of June 1, 2021;

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(i-5) funding for the Illinois Solar for All
Program, as described in subparagraph (O) of this
paragraph (1);
(ii) renewable energy credits necessary to comply
with the new wind and new photovoltaic procurement
requirements described in items (i) through (iii) of
subparagraph (C) of this paragraph (1); and
(iii) renewable energy credits necessary to meet
the remaining requirements of this subsection (c).
(G) The following provisions shall apply to the
Agency's procurement of renewable energy credits under
this subsection (c):
(i) Notwithstanding whether a long-term renewable
resources procurement plan has been approved, the
Agency shall conduct an initial forward procurement
for renewable energy credits from new utility-scale
wind projects within 160 days after June 1, 2017 (the
effective date of Public Act 99-906). For the purposes
of this initial forward procurement, the Agency shall
solicit 15-year contracts for delivery of 1,000,000
renewable energy credits delivered annually from new
utility-scale wind projects to begin delivery on June
1, 2019, if available, but not later than June 1, 2021,
unless the project has delays in the establishment of
an operating interconnection with the applicable
transmission or distribution system as a result of the

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

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distribution provider, or other causes for force
majeure as outlined in the procurement contract, in
which case, not later than June 1, 2022. The Agency may
structure this initial procurement in one or more
discrete procurement events. Payments to suppliers of
renewable energy credits shall commence upon delivery.
Renewable energy credits procured under this initial
procurement shall be included in the Agency's
long-term plan and shall apply to all renewable energy
goals in this subsection (c).
(iii) Notwithstanding whether the Commission has
approved the periodic long-term renewable resources
procurement plan revision described in Section
16-111.5 of the Public Utilities Act, the Agency shall
conduct at least one subsequent forward procurement
for renewable energy credits from new utility-scale
wind projects, new utility-scale solar projects, and
new brownfield site photovoltaic projects within 240
days after the effective date of this amendatory Act
of the 102nd General Assembly in quantities necessary
to meet the requirements of subparagraph (C) of this
paragraph (1) through the delivery year beginning June
1, 2021.
(iv) Notwithstanding whether the Commission has
approved the periodic long-term renewable resources
procurement plan revision described in Section

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16-111.5 of the Public Utilities Act, the Agency shall
open capacity for each category in the Adjustable
Block program within 90 days after the effective date
of this amendatory Act of the 102nd General Assembly
manner:
(1) The Agency shall open the first block of
annual capacity for the category described in item
(i) of subparagraph (K) of this paragraph (1). The
first block of annual capacity for item (i) shall
be for at least 75 megawatts of total nameplate
capacity. The price of the renewable energy credit
for this block of capacity shall be 4% less than
the price of the last open block in this category.
Projects on a waitlist shall be awarded contracts
first in the order in which they appear on the
waitlist. Notwithstanding anything to the
contrary, for those renewable energy credits that
qualify and are procured under this subitem (1) of
this item (iv), the renewable energy credit
delivery contract value shall be paid in full,
based on the estimated generation during the first
15 years of operation, by the contracting
utilities at the time that the facility producing
the renewable energy credits is interconnected at
the distribution system level of the utility and
verified as energized and in compliance by the

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Program Administrator. The electric utility shall
receive and retire all renewable energy credits
generated by the project for the first 15 years of
operation. Renewable energy credits generated by
the project thereafter shall not be transferred
under the renewable energy credit delivery
contract with the counterparty electric utility.
(2) The Agency shall open the first block of
annual capacity for the category described in item
(ii) of subparagraph (K) of this paragraph (1).
The first block of annual capacity for item (ii)
shall be for at least 75 megawatts of total
nameplate capacity.
(A) The price of the renewable energy
credit for any project on a waitlist for this
category before the opening of this block
shall be 4% less than the price of the last
open block in this category. Projects on the
waitlist shall be awarded contracts first in
the order in which they appear on the
waitlist. Any projects that are less than or
equal to 25 kilowatts in size on the waitlist
for this capacity shall be moved to the
waitlist for paragraph (1) of this item (iv).
Notwithstanding anything to the contrary,
projects that were on the waitlist prior to

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opening of this block shall not be required to
be in compliance with the requirements of
subparagraph (Q) of this paragraph (1) of this
subsection (c). Notwithstanding anything to
the contrary, for those renewable energy
credits procured from projects that were on
the waitlist for this category before the
opening of this block 20% of the renewable
energy credit delivery contract value, based
on the estimated generation during the first
15 years of operation, shall be paid by the
contracting utilities at the time that the
facility producing the renewable energy
credits is interconnected at the distribution
system level of the utility and verified as
energized by the Program Administrator. The
remaining portion shall be paid ratably over
the subsequent 4-year period. The electric
utility shall receive and retire all renewable
energy credits generated by the project during
the first 15 years of operation. Renewable
energy credits generated by the project
thereafter shall not be transferred under the
renewable energy credit delivery contract with
the counterparty electric utility.
(B) The price of renewable energy credits

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for any project not on the waitlist for this
category before the opening of the block shall
be determined and published by the Agency.
Projects not on a waitlist as of the opening
of this block shall be subject to the
requirements of subparagraph (Q) of this
paragraph (1), as applicable. Projects not on
a waitlist as of the opening of this block
shall be subject to the contract provisions
outlined in item (iii) of subparagraph (L) of
this paragraph (1). The Agency shall strive to
publish updated prices and an updated
renewable energy credit delivery contract as
quickly as possible.
(3) For opening the first 2 blocks of annual
capacity for projects participating in item (iii)
of subparagraph (K) of paragraph (1) of subsection
(c), projects shall be selected exclusively from
those projects on the ordinal waitlists of
community renewable generation projects
established by the Agency based on the status of
those ordinal waitlists as of December 31, 2020,
and only those projects previously determined to
be eligible for the Agency's April 2019 community
solar project selection process.
The first 2 blocks of annual capacity for item

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(iii) shall be for 250 megawatts of total
nameplate capacity, with both blocks opening
simultaneously under the schedule outlined in the
paragraphs below. Projects shall be selected as
follows:
(A) The geographic balance of selected
projects shall follow the Group classification
found in the Agency's Revised Long-Term
Renewable Resources Procurement Plan, with 70%
of capacity allocated to projects on the Group
B waitlist and 30% of capacity allocated to
projects on the Group A waitlist.
(B) Contract awards for waitlisted
projects shall be allocated proportionate to
the total nameplate capacity amount across
both ordinal waitlists associated with that
applicant firm or its affiliates, subject to
the following conditions.
(i) Each applicant firm having a
waitlisted project eligible for selection
shall receive no less than 500 kilowatts
in awarded capacity across all groups, and
no approved vendor may receive more than
20% of each Group's waitlist allocation.
(ii) Each applicant firm, upon
receiving an award of program capacity

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proportionate to its waitlisted capacity,
may then determine which waitlisted
projects it chooses to be selected for a
contract award up to that capacity amount.
(iii) Assuming all other program
requirements are met, applicant firms may
adjust the nameplate capacity of applicant
projects without losing waitlist
eligibility, so long as no project is
greater than 2,000 kilowatts in size.
(iv) Assuming all other program
requirements are met, applicant firms may
adjust the expected production associated
with applicant projects, subject to
verification by the Program Administrator.
(C) After a review of affiliate
information and the current ordinal waitlists,
the Agency shall announce the nameplate
capacity award amounts associated with
applicant firms no later than 90 days after
the effective date of this amendatory Act of
the 102nd General Assembly.
(D) Applicant firms shall submit their
portfolio of projects used to satisfy those
contract awards no less than 90 days after the
Agency's announcement. The total nameplate

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capacity of all projects used to satisfy that
portfolio shall be no greater than the
Agency's nameplate capacity award amount
associated with that applicant firm. An
applicant firm may decline, in whole or in
part, its nameplate capacity award without
penalty, with such unmet capacity rolled over
to the next block opening for project
selection under item (iii) of subparagraph (K)
of this subsection (c). Any projects not
included in an applicant firm's portfolio may
reapply without prejudice upon the next block
reopening for project selection under item
(iii) of subparagraph (K) of this subsection
(c).
(E) The renewable energy credit delivery
contract shall be subject to the contract and
payment terms outlined in item (iv) of
subparagraph (L) of this subsection (c).
Contract instruments used for this
subparagraph shall contain the following
terms:
(i) Renewable energy credit prices
shall be fixed, without further adjustment
under any other provision of this Act or
for any other reason, at 10% lower than

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prices applicable to the last open block
for this category, inclusive of any adders
available for achieving a minimum of 50%
of subscribers to the project's nameplate
capacity being residential or small
commercial customers with subscriptions of
below 25 kilowatts in size;
(ii) A requirement that a minimum of
50% of subscribers to the project's
nameplate capacity be residential or small
commercial customers with subscriptions of
below 25 kilowatts in size;
(iii) Permission for the ability of a
contract holder to substitute projects
with other waitlisted projects without
penalty should a project receive a
non-binding estimate of costs to construct
the interconnection facilities and any
required distribution upgrades associated
with that project of greater than 30 cents
per watt AC of that project's nameplate
capacity. In developing the applicable
contract instrument, the Agency may
consider whether other circumstances
outside of the control of the applicant
firm should also warrant project

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substitution rights.
The Agency shall publish a finalized
updated renewable energy credit delivery
contract developed consistent with these terms
and conditions no less than 30 days before
applicant firms must submit their portfolio of
projects pursuant to item (D).
(F) To be eligible for an award, the
applicant firm shall certify that not less
than prevailing wage, as determined pursuant
to the Illinois Prevailing Wage Act, was or
will be paid to employees who are engaged in
construction activities associated with a
selected project.
(4) The Agency shall open the first block of
annual capacity for the category described in item
(iv) of subparagraph (K) of this paragraph (1).
The first block of annual capacity for item (iv)
shall be for at least 50 megawatts of total
nameplate capacity. Renewable energy credit prices
shall be fixed, without further adjustment under
any other provision of this Act or for any other
reason, at the price in the last open block in the
category described in item (ii) of subparagraph
(K) of this paragraph (1). Pricing for future
blocks of annual capacity for this category may be

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adjusted in the Agency's second revision to its
Long-Term Renewable Resources Procurement Plan.
Projects in this category shall be subject to the
contract terms outlined in item (iv) of
subparagraph (L) of this paragraph (1).
(5) The Agency shall open the equivalent of 2
years of annual capacity for the category
described in item (v) of subparagraph (K) of this
paragraph (1). The first block of annual capacity
for item (v) shall be for at least 10 megawatts of
total nameplate capacity. Notwithstanding the
provisions of item (v) of subparagraph (K) of this
paragraph (1), for the purpose of this initial
block, the agency shall accept new project
applications intended to increase the diversity of
areas hosting community solar projects, the
business models of projects, and the size of
projects, as described by the Agency in its
long-term renewable resources procurement plan
that is approved as of the effective date of this
amendatory Act of the 102nd General Assembly.
Projects in this category shall be subject to the
contract terms outlined in item (iii) of
subsection (L) of this paragraph (1).
(6) The Agency shall open the first blocks of
annual capacity for the category described in item

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(vi) of subparagraph (K) of this paragraph (1),
with allocations of capacity within the block
generally matching the historical share of block
capacity allocated between the category described
in items (i) and (ii) of subparagraph (K) of this
paragraph (1). The first two blocks of annual
capacity for item (vi) shall be for at least 75
megawatts of total nameplate capacity. The price
of renewable energy credits for the blocks of
capacity shall be 4% less than the price of the
last open blocks in the categories described in
items (i) and (ii) of subparagraph (K) of this
paragraph (1). Pricing for future blocks of annual
capacity for this category may be adjusted in the
Agency's second revision to its Long-Term
Renewable Resources Procurement Plan. Projects in
this category shall be subject to the applicable
contract terms outlined in items (ii) and (iii) of
subparagraph (L) of this paragraph (1).
(v) Upon the effective date of this amendatory Act
of the 102nd General Assembly, for all competitive
procurements and any procurements of renewable energy
credit from new utility-scale wind and new
utility-scale photovoltaic projects, the Agency shall
procure indexed renewable energy credits and direct
respondents to offer a strike price.

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(1) The purchase price of the indexed
renewable energy credit payment shall be
calculated for each settlement period. That
payment, for any settlement period, shall be equal
to the difference resulting from subtracting the
strike price from the index price for that
settlement period. If this difference results in a
negative number, the indexed REC counterparty
shall owe the seller the absolute value multiplied
by the quantity of energy produced in the relevant
settlement period. If this difference results in a
positive number, the seller shall owe the indexed
REC counterparty this amount multiplied by the
quantity of energy produced in the relevant
settlement period.
(2) Parties shall cash settle every month,
summing up all settlements (both positive and
negative, if applicable) for the prior month.
(3) To ensure funding in the annual budget
established under subparagraph (E) for indexed
renewable energy credit procurements for each year
of the term of such contracts, which must have a
minimum tenure of 20 calendar years, the
procurement administrator, Agency, Commission
staff, and procurement monitor shall quantify the
annual cost of the contract by utilizing an

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industry-standard, third-party forward price curve
for energy at the appropriate hub or load zone,
including the estimated magnitude and timing of
the price effects related to federal carbon
controls. Each forward price curve shall contain a
specific value of the forecasted market price of
electricity for each annual delivery year of the
contract. For procurement planning purposes, the
impact on the annual budget for the cost of
indexed renewable energy credits for each delivery
year shall be determined as the expected annual
contract expenditure for that year, equaling the
difference between (i) the sum across all relevant
contracts of the applicable strike price
multiplied by contract quantity and (ii) the sum
across all relevant contracts of the forward price
curve for the applicable load zone for that year
multiplied by contract quantity. The contracting
utility shall not assume an obligation in excess
of the estimated annual cost of the contracts for
indexed renewable energy credits. Forward curves
shall be revised on an annual basis as updated
forward price curves are released and filed with
the Commission in the proceeding approving the
Agency's most recent long-term renewable resources
procurement plan. If the expected contract spend

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is higher or lower than the total quantity of
contracts multiplied by the forward price curve
value for that year, the forward price curve shall
be updated by the procurement administrator, in
consultation with the Agency, Commission staff,
and procurement monitors, using then-currently
available price forecast data and additional
budget dollars shall be obligated or reobligated
as appropriate.
(4) To ensure that indexed renewable energy
credit prices remain predictable and affordable,
the Agency may consider the institution of a price
collar on REC prices paid under indexed renewable
energy credit procurements establishing floor and
ceiling REC prices applicable to indexed REC
contract prices. Any price collars applicable to
indexed REC procurements shall be proposed by the
Agency through its long-term renewable resources
procurement plan.
(vi) All procurements under this subparagraph (G),
including the procurement of renewable energy credits
from hydropower facilities, shall comply with the
geographic requirements in subparagraph (I) of this
paragraph (1) and shall follow the procurement
processes and procedures described in this Section and
Section 16-111.5 of the Public Utilities Act to the

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extent practicable, and these processes and procedures
may be expedited to accommodate the schedule
established by this subparagraph (G).
(vii) On and after the effective date of this
amendatory Act of the 103rd General Assembly, for all
procurements of renewable energy credits from
hydropower facilities, the Agency shall establish
contract terms designed to optimize existing
hydropower facilities through modernization or
retooling and establish new hydropower facilities at
existing dams. Procurements made under this item (vii)
shall prioritize projects located in designated
environmental justice communities, as defined in
subsection (b) of Section 1-56 of this Act, or in
projects located in units of local government with
median incomes that do not exceed 82% of the median
income of the State.
(H) The procurement of renewable energy resources for
a given delivery year shall be reduced as described in
this subparagraph (H) if an alternative retail electric
supplier meets the requirements described in this
subparagraph (H).
(i) Within 45 days after June 1, 2017 (the
effective date of Public Act 99-906), an alternative
retail electric supplier or its successor shall submit
an informational filing to the Illinois Commerce

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Commission certifying that, as of December 31, 2015,
the alternative retail electric supplier owned one or
more electric generating facilities that generates
renewable energy resources as defined in Section 1-10
of this Act, provided that such facilities are not
powered by wind or photovoltaics, and the facilities
generate one renewable energy credit for each
megawatthour of energy produced from the facility.
The informational filing shall identify each
facility that was eligible to satisfy the alternative
retail electric supplier's obligations under Section
16-115D of the Public Utilities Act as described in
this item (i).
(ii) For a given delivery year, the alternative
retail electric supplier may elect to supply its
retail customers with renewable energy credits from
the facility or facilities described in item (i) of
this subparagraph (H) that continue to be owned by the
alternative retail electric supplier.
(iii) The alternative retail electric supplier
shall notify the Agency and the applicable utility, no
later than February 28 of the year preceding the
applicable delivery year or 15 days after June 1, 2017
(the effective date of Public Act 99-906), whichever
is later, of its election under item (ii) of this
subparagraph (H) to supply renewable energy credits to

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retail customers of the utility. Such election shall
identify the amount of renewable energy credits to be
supplied by the alternative retail electric supplier
to the utility's retail customers and the source of
the renewable energy credits identified in the
informational filing as described in item (i) of this
subparagraph (H), subject to the following
limitations:
For the delivery year beginning June 1, 2018,
the maximum amount of renewable energy credits to
be supplied by an alternative retail electric
supplier under this subparagraph (H) shall be 68%
multiplied by 25% multiplied by 14.5% multiplied
by the amount of metered electricity
(megawatt-hours) delivered by the alternative
retail electric supplier to Illinois retail
customers during the delivery year ending May 31,
2016.
For delivery years beginning June 1, 2019 and
each year thereafter, the maximum amount of
renewable energy credits to be supplied by an
alternative retail electric supplier under this
subparagraph (H) shall be 68% multiplied by 50%
multiplied by 16% multiplied by the amount of
metered electricity (megawatt-hours) delivered by
the alternative retail electric supplier to

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Illinois retail customers during the delivery year
ending May 31, 2016, provided that the 16% value
shall increase by 1.5% each delivery year
thereafter to 25% by the delivery year beginning
June 1, 2025, and thereafter the 25% value shall
apply to each delivery year.
For each delivery year, the total amount of
renewable energy credits supplied by all alternative
retail electric suppliers under this subparagraph (H)
shall not exceed 9% of the Illinois target renewable
energy credit quantity. The Illinois target renewable
energy credit quantity for the delivery year beginning
June 1, 2018 is 14.5% multiplied by the total amount of
metered electricity (megawatt-hours) delivered in the
delivery year immediately preceding that delivery
year, provided that the 14.5% shall increase by 1.5%
each delivery year thereafter to 25% by the delivery
year beginning June 1, 2025, and thereafter the 25%
value shall apply to each delivery year.
If the requirements set forth in items (i) through
(iii) of this subparagraph (H) are met, the charges
that would otherwise be applicable to the retail
customers of the alternative retail electric supplier
under paragraph (6) of this subsection (c) for the
applicable delivery year shall be reduced by the ratio
of the quantity of renewable energy credits supplied

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by the alternative retail electric supplier compared
to that supplier's target renewable energy credit
quantity. The supplier's target renewable energy
credit quantity for the delivery year beginning June
1, 2018 is 14.5% multiplied by the total amount of
metered electricity (megawatt-hours) delivered by the
alternative retail supplier in that delivery year,
provided that the 14.5% shall increase by 1.5% each
delivery year thereafter to 25% by the delivery year
beginning June 1, 2025, and thereafter the 25% value
shall apply to each delivery year.
On or before April 1 of each year, the Agency shall
annually publish a report on its website that
identifies the aggregate amount of renewable energy
credits supplied by alternative retail electric
suppliers under this subparagraph (H).
(I) The Agency shall design its long-term renewable
energy procurement plan to maximize the State's interest
in the health, safety, and welfare of its residents,
including but not limited to minimizing sulfur dioxide,
nitrogen oxide, particulate matter and other pollution
that adversely affects public health in this State,
increasing fuel and resource diversity in this State,
enhancing the reliability and resiliency of the
electricity distribution system in this State, meeting
goals to limit carbon dioxide emissions under federal or

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State law, and contributing to a cleaner and healthier
environment for the citizens of this State. In order to
further these legislative purposes, renewable energy
credits shall be eligible to be counted toward the
renewable energy requirements of this subsection (c) if
they are generated from facilities located in this State.
The Agency may qualify renewable energy credits from
facilities located in states adjacent to Illinois or
renewable energy credits associated with the electricity
generated by a utility-scale wind energy facility or
utility-scale photovoltaic facility and transmitted by a
qualifying direct current project described in subsection
(b-5) of Section 8-406 of the Public Utilities Act to a
delivery point on the electric transmission grid located
in this State or a state adjacent to Illinois, if the
generator demonstrates and the Agency determines that the
operation of such facility or facilities will help promote
the State's interest in the health, safety, and welfare of
its residents based on the public interest criteria
described above. For the purposes of this Section,
renewable resources that are delivered via a high voltage
direct current converter station located in Illinois shall
be deemed generated in Illinois at the time and location
the energy is converted to alternating current by the high
voltage direct current converter station if the high
voltage direct current transmission line: (i) after the

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effective date of this amendatory Act of the 102nd General
Assembly, was constructed with a project labor agreement;
(ii) is capable of transmitting electricity at 525kv;
(iii) has an Illinois converter station located and
interconnected in the region of the PJM Interconnection,
LLC; (iv) does not operate as a public utility; and (v) if
the high voltage direct current transmission line was
energized after June 1, 2023. To ensure that the public
interest criteria are applied to the procurement and given
full effect, the Agency's long-term procurement plan shall
describe in detail how each public interest factor shall
be considered and weighted for facilities located in
states adjacent to Illinois.
(J) In order to promote the competitive development of
renewable energy resources in furtherance of the State's
interest in the health, safety, and welfare of its
residents, renewable energy credits shall not be eligible
to be counted toward the renewable energy requirements of
this subsection (c) if they are sourced from a generating
unit whose costs were being recovered through rates
regulated by this State or any other state or states on or
after January 1, 2017. Each contract executed to purchase
renewable energy credits under this subsection (c) shall
provide for the contract's termination if the costs of the
generating unit supplying the renewable energy credits
subsequently begin to be recovered through rates regulated

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by this State or any other state or states; and each
contract shall further provide that, in that event, the
supplier of the credits must return 110% of all payments
received under the contract. Amounts returned under the
requirements of this subparagraph (J) shall be retained by
the utility and all of these amounts shall be used for the
procurement of additional renewable energy credits from
new wind or new photovoltaic resources as defined in this
subsection (c). The long-term plan shall provide that
these renewable energy credits shall be procured in the
next procurement event.
Notwithstanding the limitations of this subparagraph
(J), renewable energy credits sourced from generating
units that are constructed, purchased, owned, or leased by
an electric utility as part of an approved project,
program, or pilot under Section 1-56 of this Act shall be
eligible to be counted toward the renewable energy
requirements of this subsection (c), regardless of how the
costs of these units are recovered. As long as a
generating unit or an identifiable portion of a generating
unit has not had and does not have its costs recovered
through rates regulated by this State or any other state,
HVDC renewable energy credits associated with that
generating unit or identifiable portion thereof shall be
eligible to be counted toward the renewable energy
requirements of this subsection (c).

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(K) The long-term renewable resources procurement plan
developed by the Agency in accordance with subparagraph
(A) of this paragraph (1) shall include an Adjustable
Block program for the procurement of renewable energy
credits from new photovoltaic projects that are
distributed renewable energy generation devices or new
photovoltaic community renewable generation projects. The
Adjustable Block program shall be generally designed to
provide for the steady, predictable, and sustainable
growth of new solar photovoltaic development in Illinois.
To this end, the Adjustable Block program shall provide a
transparent annual schedule of prices and quantities to
enable the photovoltaic market to scale up and for
renewable energy credit prices to adjust at a predictable
rate over time. The prices set by the Adjustable Block
program can be reflected as a set value or as the product
of a formula.
The Adjustable Block program shall include for each
category of eligible projects for each delivery year: a
single block of nameplate capacity, a price for renewable
energy credits within that block, and the terms and
conditions for securing a spot on a waitlist once the
block is fully committed or reserved. Except as outlined
below, the waitlist of projects in a given year will carry
over to apply to the subsequent year when another block is
opened. Only projects energized on or after June 1, 2017

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shall be eligible for the Adjustable Block program. For
each category for each delivery year the Agency shall
determine the amount of generation capacity in each block,
and the purchase price for each block, provided that the
purchase price provided and the total amount of generation
in all blocks for all categories shall be sufficient to
meet the goals in this subsection (c). The Agency shall
strive to issue a single block sized to provide for
stability and market growth. The Agency shall establish
program eligibility requirements that ensure that projects
that enter the program are sufficiently mature to indicate
a demonstrable path to completion. The Agency may
periodically review its prior decisions establishing the
amount of generation capacity in each block, and the
purchase price for each block, and may propose, on an
expedited basis, changes to these previously set values,
including but not limited to redistributing these amounts
and the available funds as necessary and appropriate,
subject to Commission approval as part of the periodic
plan revision process described in Section 16-111.5 of the
Public Utilities Act. The Agency may define different
block sizes, purchase prices, or other distinct terms and
conditions for projects located in different utility
service territories if the Agency deems it necessary to
meet the goals in this subsection (c).
The Adjustable Block program shall include the

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following categories in at least the following amounts:
(i) At least 20% from distributed renewable energy
generation devices with a nameplate capacity of no
more than 25 kilowatts.
(ii) At least 20% from distributed renewable
energy generation devices with a nameplate capacity of
more than 25 kilowatts and no more than 5,000
kilowatts. The Agency may create sub-categories within
this category to account for the differences between
projects for small commercial customers, large
commercial customers, and public or non-profit
customers.
(iii) At least 30% from photovoltaic community
renewable generation projects. Capacity for this
category for the first 2 delivery years after the
effective date of this amendatory Act of the 102nd
General Assembly shall be allocated to waitlist
projects as provided in paragraph (3) of item (iv) of
subparagraph (G). Starting in the third delivery year
after the effective date of this amendatory Act of the
102nd General Assembly or earlier if the Agency
determines there is additional capacity needed for to
meet previous delivery year requirements, the
following shall apply:
(1) the Agency shall select projects on a
first-come, first-serve basis, however the Agency

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may suggest additional methods to prioritize
projects that are submitted at the same time;
(2) projects shall have subscriptions of 25 kW
or less for at least 50% of the facility's
nameplate capacity and the Agency shall price the
renewable energy credits with that as a factor;
(3) projects shall not be colocated with one
or more other community renewable generation
projects, as defined in the Agency's first revised
long-term renewable resources procurement plan
approved by the Commission on February 18, 2020,
such that the aggregate nameplate capacity exceeds
5,000 kilowatts; and
(4) projects greater than 2 MW may not apply
until after the approval of the Agency's revised
Long-Term Renewable Resources Procurement Plan
after the effective date of this amendatory Act of
the 102nd General Assembly.
(iv) At least 15% from distributed renewable
generation devices or photovoltaic community renewable
generation projects installed on public school land.
The Agency may create subcategories within this
category to account for the differences between
project size or location. Projects located within
environmental justice communities or within
Organizational Units that fall within Tier 1 or Tier 2

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shall be given priority. Each of the Agency's periodic
updates to its long-term renewable resources
procurement plan to incorporate the procurement
described in this subparagraph (iv) shall also include
the proposed quantities or blocks, pricing, and
contract terms applicable to the procurement as
indicated herein. In each such update and procurement,
the Agency shall set the renewable energy credit price
and establish payment terms for the renewable energy
credits procured pursuant to this subparagraph (iv)
that make it feasible and affordable for public
schools to install photovoltaic distributed renewable
energy devices on their premises, including, but not
limited to, those public schools subject to the
prioritization provisions of this subparagraph. For
the purposes of this item (iv):
"Environmental Justice Community" shall have the
same meaning set forth in the Agency's long-term
renewable resources procurement plan;
"Organization Unit", "Tier 1" and "Tier 2" shall
have the meanings set forth for in Section 18-8.15 of
the School Code;
"Public schools" shall have the meaning set forth
in Section 1-3 of the School Code and includes public
institutions of higher education, as defined in the
Board of Higher Education Act.

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(v) At least 5% from community-driven community
solar projects intended to provide more direct and
tangible connection and benefits to the communities
which they serve or in which they operate and,
additionally, to increase the variety of community
solar locations, models, and options in Illinois. As
part of its long-term renewable resources procurement
plan, the Agency shall develop selection criteria for
projects participating in this category. Nothing in
this Section shall preclude the Agency from creating a
selection process that maximizes community ownership
and community benefits in selecting projects to
receive renewable energy credits. Selection criteria
shall include:
(1) community ownership or community
wealth-building;
(2) additional direct and indirect community
benefit, beyond project participation as a
subscriber, including, but not limited to,
economic, environmental, social, cultural, and
physical benefits;
(3) meaningful involvement in project
organization and development by community members
or nonprofit organizations or public entities
located in or serving the community;
(4) engagement in project operations and

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management by nonprofit organizations, public
entities, or community members; and
(5) whether a project is developed in response
to a site-specific RFP developed by community
members or a nonprofit organization or public
entity located in or serving the community.
Selection criteria may also prioritize projects
that:
(1) are developed in collaboration with or to
provide complementary opportunities for the Clean
Jobs Workforce Network Program, the Illinois
Climate Works Preapprenticeship Program, the
Returning Residents Clean Jobs Training Program,
the Clean Energy Contractor Incubator Program, or
the Clean Energy Primes Contractor Accelerator
Program;
(2) increase the diversity of locations of
community solar projects in Illinois, including by
locating in urban areas and population centers;
(3) are located in Equity Investment Eligible
Communities;
(4) are not greenfield projects;
(5) serve only local subscribers;
(6) have a nameplate capacity that does not
exceed 500 kW;
(7) are developed by an equity eligible

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contractor; or
(8) otherwise meaningfully advance the goals
of providing more direct and tangible connection
and benefits to the communities which they serve
or in which they operate and increasing the
variety of community solar locations, models, and
options in Illinois.
For the purposes of this item (v):
"Community" means a social unit in which people
come together regularly to effect change; a social
unit in which participants are marked by a cooperative
spirit, a common purpose, or shared interests or
characteristics; or a space understood by its
residents to be delineated through geographic
boundaries or landmarks.
"Community benefit" means a range of services and
activities that provide affirmative, economic,
environmental, social, cultural, or physical value to
a community; or a mechanism that enables economic
development, high-quality employment, and education
opportunities for local workers and residents, or
formal monitoring and oversight structures such that
community members may ensure that those services and
activities respond to local knowledge and needs.
"Community ownership" means an arrangement in
which an electric generating facility is, or over time

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will be, in significant part, owned collectively by
members of the community to which an electric
generating facility provides benefits; members of that
community participate in decisions regarding the
governance, operation, maintenance, and upgrades of
and to that facility; and members of that community
benefit from regular use of that facility.
Terms and guidance within these criteria that are
not defined in this item (v) shall be defined by the
Agency, with stakeholder input, during the development
of the Agency's long-term renewable resources
procurement plan. The Agency shall develop regular
opportunities for projects to submit applications for
projects under this category, and develop selection
criteria that gives preference to projects that better
meet individual criteria as well as projects that
address a higher number of criteria.
(vi) At least 10% from distributed renewable
energy generation devices, which includes distributed
renewable energy devices with a nameplate capacity
under 5,000 kilowatts or photovoltaic community
renewable generation projects, from applicants that
are equity eligible contractors. The Agency may create
subcategories within this category to account for the
differences between project size and type. The Agency
shall propose to increase the percentage in this item

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(vi) over time to 40% based on factors, including, but
not limited to, the number of equity eligible
contractors and capacity used in this item (vi) in
previous delivery years.
The Agency shall propose a payment structure for
contracts executed pursuant to this paragraph under
which, upon a demonstration of qualification or need,
applicant firms are advanced capital disbursed after
contract execution but before the contracted project's
energization. The amount or percentage of capital
advanced prior to project energization shall be
sufficient to both cover any increase in development
costs resulting from prevailing wage requirements or
project-labor agreements, and designed to overcome
barriers in access to capital faced by equity eligible
contractors. The amount or percentage of advanced
capital may vary by subcategory within this category
and by an applicant's demonstration of need, with such
levels to be established through the Long-Term
Renewable Resources Procurement Plan authorized under
subparagraph (A) of paragraph (1) of subsection (c) of
this Section.
Contracts developed featuring capital advanced
prior to a project's energization shall feature
provisions to ensure both the successful development
of applicant projects and the delivery of the

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renewable energy credits for the full term of the
contract, including ongoing collateral requirements
and other provisions deemed necessary by the Agency,
and may include energization timelines longer than for
comparable project types. The percentage or amount of
capital advanced prior to project energization shall
not operate to increase the overall contract value,
however contracts executed under this subparagraph may
feature renewable energy credit prices higher than
those offered to similar projects participating in
other categories. Capital advanced prior to
energization shall serve to reduce the ratable
payments made after energization under items (ii) and
(iii) of subparagraph (L) or payments made for each
renewable energy credit delivery under item (iv) of
subparagraph (L).
(vii) The remaining capacity shall be allocated by
the Agency in order to respond to market demand. The
Agency shall allocate any discretionary capacity prior
to the beginning of each delivery year.
To the extent there is uncontracted capacity from any
block in any of categories (i) through (vi) at the end of a
delivery year, the Agency shall redistribute that capacity
to one or more other categories giving priority to
categories with projects on a waitlist. The redistributed
capacity shall be added to the annual capacity in the

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subsequent delivery year, and the price for renewable
energy credits shall be the price for the new delivery
year. Redistributed capacity shall not be considered
redistributed when determining whether the goals in this
subsection (K) have been met.
Notwithstanding anything to the contrary, as the
Agency increases the capacity in item (vi) to 40% over
time, the Agency may reduce the capacity of items (i)
through (v) proportionate to the capacity of the
categories of projects in item (vi), to achieve a balance
of project types.
The Adjustable Block program shall be designed to
ensure that renewable energy credits are procured from
projects in diverse locations and are not concentrated in
a few regional areas.
(L) Notwithstanding provisions for advancing capital
prior to project energization found in item (vi) of
subparagraph (K), the procurement of photovoltaic
renewable energy credits under items (i) through (vi) of
subparagraph (K) of this paragraph (1) shall otherwise be
subject to the following contract and payment terms:
(i) (Blank).
(ii) For those renewable energy credits that
qualify and are procured under item (i) of
subparagraph (K) of this paragraph (1), and any
similar category projects that are procured under item

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

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interconnected at the distribution system level of the
utility and verified as energized and compliant by the
Program Administrator. The remaining portion shall be
paid ratably over the subsequent 6-year period. The
electric utility shall receive and retire all
renewable energy credits generated by the project for
the first 15 years of operation. Renewable energy
credits generated by the project thereafter shall not
be transferred under the renewable energy credit
delivery contract with the counterparty electric
utility.
(iv) For those renewable energy credits that
qualify and are procured under items (iii) and (iv) of
subparagraph (K) of this paragraph (1), and any like
projects that qualify and are procured under item
(vi), the renewable energy credit delivery contract
length shall be 20 years and shall be paid over the
delivery term, not to exceed during each delivery year
the contract price multiplied by the estimated annual
renewable energy credit generation amount. If
generation of renewable energy credits during a
delivery year exceeds the estimated annual generation
amount, the excess renewable energy credits shall be
carried forward to future delivery years and shall not
expire during the delivery term. If generation of
renewable energy credits during a delivery year,

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including carried forward excess renewable energy
credits, if any, is less than the estimated annual
generation amount, payments during such delivery year
will not exceed the quantity generated plus the
quantity carried forward multiplied by the contract
price. The electric utility shall receive all
renewable energy credits generated by the project
during the first 20 years of operation and retire all
renewable energy credits paid for under this item (iv)
and return at the end of the delivery term all
renewable energy credits that were not paid for.
Renewable energy credits generated by the project
thereafter shall not be transferred under the
renewable energy credit delivery contract with the
counterparty electric utility. Notwithstanding the
preceding, for those projects participating under item
(iii) of subparagraph (K), the contract price for a
delivery year shall be based on subscription levels as
measured on the higher of the first business day of the
delivery year or the first business day 6 months after
the first business day of the delivery year.
Subscription of 90% of nameplate capacity or greater
shall be deemed to be fully subscribed for the
purposes of this item (iv). For projects receiving a
20-year delivery contract, REC prices shall be
adjusted downward for consistency with the incentive

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levels previously determined to be necessary to
support projects under 15-year delivery contracts,
taking into consideration any additional new
requirements placed on the projects, including, but
not limited to, labor standards.
(v) Each contract shall include provisions to
ensure the delivery of the estimated quantity of
renewable energy credits and ongoing collateral
requirements and other provisions deemed appropriate
by the Agency.
(vi) The utility shall be the counterparty to the
contracts executed under this subparagraph (L) that
are approved by the Commission under the process
described in Section 16-111.5 of the Public Utilities
Act. No contract shall be executed for an amount that
is less than one renewable energy credit per year.
(vii) If, at any time, approved applications for
the Adjustable Block program exceed funds collected by
the electric utility or would cause the Agency to
exceed the limitation described in subparagraph (E) of
this paragraph (1) on the amount of renewable energy
resources that may be procured, then the Agency may
consider future uncommitted funds to be reserved for
these contracts on a first-come, first-served basis.
(viii) Nothing in this Section shall require the
utility to advance any payment or pay any amounts that

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exceed the actual amount of revenues anticipated to be
collected by the utility under paragraph (6) of this
subsection (c) and subsection (k) of Section 16-108 of
the Public Utilities Act inclusive of eligible funds
collected in prior years and alternative compliance
payments for use by the utility.
(ix) Notwithstanding other requirements of this
subparagraph (L), no modification shall be required to
Adjustable Block program contracts if they were
already executed prior to the establishment, approval,
and implementation of new contract forms as a result
of this amendatory Act of the 102nd General Assembly.
(x) Contracts may be assignable, but only to
entities first deemed by the Agency to have met
program terms and requirements applicable to direct
program participation. In developing contracts for the
delivery of renewable energy credits, the Agency shall
be permitted to establish fees applicable to each
contract assignment.
(M) The Agency shall be authorized to retain one or
more experts or expert consulting firms to develop,
administer, implement, operate, and evaluate the
Adjustable Block program described in subparagraph (K) of
this paragraph (1), and the Agency shall retain the
consultant or consultants in the same manner, to the
extent practicable, as the Agency retains others to

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administer provisions of this Act, including, but not
limited to, the procurement administrator. The selection
of experts and expert consulting firms and the procurement
process described in this subparagraph (M) are exempt from
the requirements of Section 20-10 of the Illinois
Procurement Code, under Section 20-10 of that Code. The
Agency shall strive to minimize administrative expenses in
the implementation of the Adjustable Block program.
The Program Administrator may charge application fees
to participating firms to cover the cost of program
administration. Any application fee amounts shall
initially be determined through the long-term renewable
resources procurement plan, and modifications to any
application fee that deviate more than 25% from the
Commission's approved value must be approved by the
Commission as a long-term plan revision under Section
16-111.5 of the Public Utilities Act. The Agency shall
consider stakeholder feedback when making adjustments to
application fees and shall notify stakeholders in advance
of any planned changes.
In addition to covering the costs of program
administration, the Agency, in conjunction with its
Program Administrator, may also use the proceeds of such
fees charged to participating firms to support public
education and ongoing regional and national coordination
with nonprofit organizations, public bodies, and others

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engaged in the implementation of renewable energy
incentive programs or similar initiatives. This work may
include developing papers and reports, hosting regional
and national conferences, and other work deemed necessary
by the Agency to position the State of Illinois as a
national leader in renewable energy incentive program
development and administration.
The Agency and its consultant or consultants shall
monitor block activity, share program activity with
stakeholders and conduct quarterly meetings to discuss
program activity and market conditions. If necessary, the
Agency may make prospective administrative adjustments to
the Adjustable Block program design, such as making
adjustments to purchase prices as necessary to achieve the
goals of this subsection (c). Program modifications to any
block price that do not deviate from the Commission's
approved value by more than 10% shall take effect
immediately and are not subject to Commission review and
approval. Program modifications to any block price that
deviate more than 10% from the Commission's approved value
must be approved by the Commission as a long-term plan
amendment under Section 16-111.5 of the Public Utilities
Act. The Agency shall consider stakeholder feedback when
making adjustments to the Adjustable Block design and
shall notify stakeholders in advance of any planned
changes.

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The Agency and its program administrators for both the
Adjustable Block program and the Illinois Solar for All
Program, consistent with the requirements of this
subsection (c) and subsection (b) of Section 1-56 of this
Act, shall propose the Adjustable Block program terms,
conditions, and requirements, including the prices to be
paid for renewable energy credits, where applicable, and
requirements applicable to participating entities and
project applications, through the development, review, and
approval of the Agency's long-term renewable resources
procurement plan described in this subsection (c) and
paragraph (5) of subsection (b) of Section 16-111.5 of the
Public Utilities Act. Terms, conditions, and requirements
for program participation shall include the following:
(i) The Agency shall establish a registration
process for entities seeking to qualify for
program-administered incentive funding and establish
baseline qualifications for vendor approval. The
Agency must maintain a list of approved entities on
each program's website, and may revoke a vendor's
ability to receive program-administered incentive
funding status upon a determination that the vendor
failed to comply with contract terms, the law, or
other program requirements.
(ii) The Agency shall establish program
requirements and minimum contract terms to ensure

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projects are properly installed and produce their
expected amounts of energy. Program requirements may
include on-site inspections and photo documentation of
projects under construction. The Agency may require
repairs, alterations, or additions to remedy any
material deficiencies discovered. Vendors who have a
disproportionately high number of deficient systems
may lose their eligibility to continue to receive
State-administered incentive funding through Agency
programs and procurements.
(iii) To discourage deceptive marketing or other
bad faith business practices, the Agency may require
direct program participants, including agents
operating on their behalf, to provide standardized
disclosures to a customer prior to that customer's
execution of a contract for the development of a
distributed generation system or a subscription to a
community solar project.
(iv) The Agency shall establish one or multiple
Consumer Complaints Centers to accept complaints
regarding businesses that participate in, or otherwise
benefit from, State-administered incentive funding
through Agency-administered programs. The Agency shall
maintain a public database of complaints with any
confidential or particularly sensitive information
redacted from public entries.

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(v) Through a filing in the proceeding for the
approval of its long-term renewable energy resources
procurement plan, the Agency shall provide an annual
written report to the Illinois Commerce Commission
documenting the frequency and nature of complaints and
any enforcement actions taken in response to those
complaints.
(vi) The Agency shall schedule regular meetings
with representatives of the Office of the Attorney
General, the Illinois Commerce Commission, consumer
protection groups, and other interested stakeholders
to share relevant information about consumer
protection, project compliance, and complaints
received.
(vii) To the extent that complaints received
implicate the jurisdiction of the Office of the
Attorney General, the Illinois Commerce Commission, or
local, State, or federal law enforcement, the Agency
shall also refer complaints to those entities as
appropriate.
(N) The Agency shall establish the terms, conditions,
and program requirements for photovoltaic community
renewable generation projects with a goal to expand access
to a broader group of energy consumers, to ensure robust
participation opportunities for residential and small
commercial customers and those who cannot install

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renewable energy on their own properties. Subject to
reasonable limitations, any plan approved by the
Commission shall allow subscriptions to community
renewable generation projects to be portable and
transferable. For purposes of this subparagraph (N),
"portable" means that subscriptions may be retained by the
subscriber even if the subscriber relocates or changes its
address within the same utility service territory; and
"transferable" means that a subscriber may assign or sell
subscriptions to another person within the same utility
service territory.
Through the development of its long-term renewable
resources procurement plan, the Agency may consider
whether community renewable generation projects utilizing
technologies other than photovoltaics should be supported
through State-administered incentive funding, and may
issue requests for information to gauge market demand.
Electric utilities shall provide a monetary credit to
a subscriber's subsequent bill for service for the
proportional output of a community renewable generation
project attributable to that subscriber as specified in
Section 16-107.5 of the Public Utilities Act.
The Agency shall purchase renewable energy credits
from subscribed shares of photovoltaic community renewable
generation projects through the Adjustable Block program
described in subparagraph (K) of this paragraph (1) or

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through the Illinois Solar for All Program described in
Section 1-56 of this Act. The electric utility shall
purchase any unsubscribed energy from community renewable
generation projects that are Qualifying Facilities ("QF")
under the electric utility's tariff for purchasing the
output from QFs under Public Utilities Regulatory Policies
Act of 1978.
The owners of and any subscribers to a community
renewable generation project shall not be considered
public utilities or alternative retail electricity
suppliers under the Public Utilities Act solely as a
result of their interest in or subscription to a community
renewable generation project and shall not be required to
become an alternative retail electric supplier by
participating in a community renewable generation project
with a public utility.
(O) For the delivery year beginning June 1, 2018, the
long-term renewable resources procurement plan required by
this subsection (c) shall provide for the Agency to
procure contracts to continue offering the Illinois Solar
for All Program described in subsection (b) of Section
1-56 of this Act, and the contracts approved by the
Commission shall be executed by the utilities that are
subject to this subsection (c). The long-term renewable
resources procurement plan shall allocate up to
$50,000,000 per delivery year to fund the programs, and

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the plan shall determine the amount of funding to be
apportioned to the programs identified in subsection (b)
of Section 1-56 of this Act; provided that for the
delivery years beginning June 1, 2021, June 1, 2022, and
June 1, 2023, the long-term renewable resources
procurement plan may average the annual budgets over a
3-year period to account for program ramp-up. For the
delivery years beginning June 1, 2021, June 1, 2024, June
1, 2027, and June 1, 2030 and additional $10,000,000 shall
be provided to the Department of Commerce and Economic
Opportunity to implement the workforce development
programs and reporting as outlined in Section 16-108.12 of
the Public Utilities Act. In making the determinations
required under this subparagraph (O), the Commission shall
consider the experience and performance under the programs
and any evaluation reports. The Commission shall also
provide for an independent evaluation of those programs on
a periodic basis that are funded under this subparagraph
(O).
(P) All programs and procurements under this
subsection (c) shall be designed to encourage
participating projects to use a diverse and equitable
workforce and a diverse set of contractors, including
minority-owned businesses, disadvantaged businesses,
trade unions, graduates of any workforce training programs
administered under this Act, and small businesses.

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The Agency shall develop a method to optimize
procurement of renewable energy credits from proposed
utility-scale projects that are located in communities
eligible to receive Energy Transition Community Grants
pursuant to Section 10-20 of the Energy Community
Reinvestment Act. If this requirement conflicts with other
provisions of law or the Agency determines that full
compliance with the requirements of this subparagraph (P)
would be unreasonably costly or administratively
impractical, the Agency is to propose alternative
approaches to achieve development of renewable energy
resources in communities eligible to receive Energy
Transition Community Grants pursuant to Section 10-20 of
the Energy Community Reinvestment Act or seek an exemption
from this requirement from the Commission.
(Q) Each facility listed in subitems (i) through (ix)
of item (1) of this subparagraph (Q) for which a renewable
energy credit delivery contract is signed after the
effective date of this amendatory Act of the 102nd General
Assembly is subject to the following requirements through
the Agency's long-term renewable resources procurement
plan:
(1) Each facility shall be subject to the
prevailing wage requirements included in the
Prevailing Wage Act. The Agency shall require
verification that all construction performed on the

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facility by the renewable energy credit delivery
contract holder, its contractors, or its
subcontractors relating to construction of the
facility is performed by construction employees
receiving an amount for that work equal to or greater
than the general prevailing rate, as that term is
defined in Section 3 of the Prevailing Wage Act. For
purposes of this item (1), "house of worship" means
property that is both (1) used exclusively by a
religious society or body of persons as a place for
religious exercise or religious worship and (2)
recognized as exempt from taxation pursuant to Section
15-40 of the Property Tax Code. This item (1) shall
apply to any the following:
(i) all new utility-scale wind projects;
(ii) all new utility-scale photovoltaic
projects and repowered wind projects;
(iii) all new brownfield photovoltaic
projects;
(iv) all new photovoltaic community renewable
energy facilities that qualify for item (iii) of
subparagraph (K) of this paragraph (1);
(v) all new community driven community
photovoltaic projects that qualify for item (v) of
subparagraph (K) of this paragraph (1);
(vi) all new photovoltaic projects on public

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school land that qualify for item (iv) of
subparagraph (K) of this paragraph (1);
(vii) all new photovoltaic distributed
renewable energy generation devices that (1)
qualify for item (i) of subparagraph (K) of this
paragraph (1); (2) are not projects that serve
single-family or multi-family residential
buildings; and (3) are not houses of worship where
the aggregate capacity including collocated
projects would not exceed 100 kilowatts;
(viii) all new photovoltaic distributed
renewable energy generation devices that (1)
qualify for item (ii) of subparagraph (K) of this
paragraph (1); (2) are not projects that serve
single-family or multi-family residential
buildings; and (3) are not houses of worship where
the aggregate capacity including collocated
projects would not exceed 100 kilowatts;
(ix) all new, modernized, or retooled
hydropower facilities.
(2) Renewable energy credits procured from new
utility-scale wind projects, new utility-scale solar
projects, new brownfield solar projects, repowered
wind projects, and retooled hydropower facilities
pursuant to Agency procurement events occurring after
the effective date of this amendatory Act of the 102nd

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General Assembly must be from facilities built by
general contractors that must enter into a project
labor agreement, as defined by this Act, prior to
construction. The project labor agreement shall be
filed with the Director in accordance with procedures
established by the Agency through its long-term
renewable resources procurement plan. Any information
submitted to the Agency in this item (2) shall be
considered commercially sensitive information. At a
minimum, the project labor agreement must provide the
names, addresses, and occupations of the owner of the
plant and the individuals representing the labor
organization employees participating in the project
labor agreement consistent with the Project Labor
Agreements Act. The agreement must also specify the
terms and conditions as defined by this Act.
(3) It is the intent of this Section to ensure that
economic development occurs across Illinois
communities, that emerging businesses may grow, and
that there is improved access to the clean energy
economy by persons who have greater economic burdens
to success. The Agency shall take into consideration
the unique cost of compliance of this subparagraph (Q)
that might be borne by equity eligible contractors,
shall include such costs when determining the price of
renewable energy credits in the Adjustable Block

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program, and shall take such costs into consideration
in a nondiscriminatory manner when comparing bids for
competitive procurements. The Agency shall consider
costs associated with compliance whether in the
development, financing, or construction of projects.
The Agency shall periodically review the assumptions
in these costs and may adjust prices, in compliance
with subparagraph (M) of this paragraph (1).
(4) The Agency shall create a public resource that
identifies the holders of REC delivery contracts and
any contractors, developers, and subcontractors that
contribute significantly to project completion and
employ workers performing construction activities for
utility-scale wind projects, new utility-scale solar
projects, new brownfield solar projects, repowered
wind projects, and retooled hydropower facilities and
that is:
(i) publicly accessible;
(ii) easy for people to find and use;
(iii) populated with information that
includes, but is not limited to, project names,
project size, and contact information of
subcontractors who employ workers performing
construction activities on the projects, as
limited by Section 1-120; and
(iv) updated regularly.

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Approved vendors shall notify the Agency if
subcontractors are removed or added to the project
workforce and the changes shall be reflected in the
public resource.
For community solar projects that receive a
renewable energy credit delivery contract under the
program described in subparagraph (K) of paragraph
(1), if an approved vendor or the approved vendor's
contractor intends to solicit bids for the
construction or development of the project, the
approved vendor or the contractor shall post the
solicitation on a public website for the duration of
the solicitation period and for 30 days after the
close of the solicitation period. The approved vendor
shall provide the URL for the public website to the
Agency and the Agency shall make one URL for each
approved vendor publicly available on the Agency's
website. Each bid solicitation by an approved vendor
shall be posted to the same URL.
(R) In its long-term renewable resources procurement
plan, the Agency shall establish a self-direct renewable
portfolio standard compliance program for eligible
self-direct customers that purchase renewable energy
credits from utility-scale wind and solar projects through
long-term agreements for purchase of renewable energy
credits as described in this Section. Such long-term

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agreements may include the purchase of energy or other
products on a physical or financial basis and may involve
an alternative retail electric supplier as defined in
Section 16-102 of the Public Utilities Act. This program
shall take effect in the delivery year commencing June 1,
2023.
(1) For the purposes of this subparagraph:
"Eligible self-direct customer" means any retail
customers of an electric utility that serves 3,000,000
or more retail customers in the State and whose total
highest 30-minute demand was more than 10,000
kilowatts, or any retail customers of an electric
utility that serves less than 3,000,000 retail
customers but more than 500,000 retail customers in
the State and whose total highest 15-minute demand was
more than 10,000 kilowatts.
"Retail customer" has the meaning set forth in
Section 16-102 of the Public Utilities Act and
multiple retail customer accounts under the same
corporate parent may aggregate their account demands
to meet the 10,000 kilowatt threshold. The criteria
for determining whether this subparagraph is
applicable to a retail customer shall be based on the
12 consecutive billing periods prior to the start of
the year in which the application is filed.
(2) For renewable energy credits to count toward

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the self-direct renewable portfolio standard
compliance program, they must:
(i) qualify as renewable energy credits as
defined in Section 1-10 of this Act;
(ii) be sourced from one or more renewable
energy generating facilities that comply with the
geographic requirements as set forth in
subparagraph (I) of paragraph (1) of subsection
(c) as interpreted through the Agency's long-term
renewable resources procurement plan, or, where
applicable, the geographic requirements that
governed utility-scale renewable energy credits at
the time the eligible self-direct customer entered
into the applicable renewable energy credit
purchase agreement;
(iii) be procured through long-term contracts
with term lengths of at least 10 years either
directly with the renewable energy generating
facility or through a bundled power purchase
agreement, a virtual power purchase agreement, an
agreement between the renewable generating
facility, an alternative retail electric supplier,
and the customer, or such other structure as is
permissible under this subparagraph (R);
(iv) be equivalent in volume to at least 40%
of the eligible self-direct customer's usage,

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determined annually by the eligible self-direct
customer's usage during the previous delivery
year, measured to the nearest megawatt-hour;
(v) be retired by or on behalf of the large
energy customer;
(vi) be sourced from new utility-scale wind
projects or new utility-scale solar projects; and
(vii) if the contracts for renewable energy
credits are entered into after the effective date
of this amendatory Act of the 102nd General
Assembly, the new utility-scale wind projects or
new utility-scale solar projects must comply with
the requirements established in subparagraphs (P)
and (Q) of paragraph (1) of this subsection (c)
and subsection (c-10).
(3) The self-direct renewable portfolio standard
compliance program shall be designed to allow eligible
self-direct customers to procure new renewable energy
credits from new utility-scale wind projects or new
utility-scale photovoltaic projects. The Agency shall
annually determine the amount of utility-scale
renewable energy credits it will include each year
from the self-direct renewable portfolio standard
compliance program, subject to receiving qualifying
applications. In making this determination, the Agency
shall evaluate publicly available analyses and studies

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of the potential market size for utility-scale
renewable energy long-term purchase agreements by
commercial and industrial energy customers and make
that report publicly available. If demand for
participation in the self-direct renewable portfolio
standard compliance program exceeds availability, the
Agency shall ensure participation is evenly split
between commercial and industrial users to the extent
there is sufficient demand from both customer classes.
Each renewable energy credit procured pursuant to this
subparagraph (R) by a self-direct customer shall
reduce the total volume of renewable energy credits
the Agency is otherwise required to procure from new
utility-scale projects pursuant to subparagraph (C) of
paragraph (1) of this subsection (c) on behalf of
contracting utilities where the eligible self-direct
customer is located. The self-direct customer shall
file an annual compliance report with the Agency
pursuant to terms established by the Agency through
its long-term renewable resources procurement plan to
be eligible for participation in this program.
Customers must provide the Agency with their most
recent electricity billing statements or other
information deemed necessary by the Agency to
demonstrate they are an eligible self-direct customer.
(4) The Commission shall approve a reduction in

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the volumetric charges collected pursuant to Section
16-108 of the Public Utilities Act for approved
eligible self-direct customers equivalent to the
anticipated cost of renewable energy credit deliveries
under contracts for new utility-scale wind and new
utility-scale solar entered for each delivery year
after the large energy customer begins retiring
eligible new utility scale renewable energy credits
for self-compliance. The self-direct credit amount
shall be determined annually and is equal to the
estimated portion of the cost authorized by
subparagraph (E) of paragraph (1) of this subsection
(c) that supported the annual procurement of
utility-scale renewable energy credits in the prior
delivery year using a methodology described in the
long-term renewable resources procurement plan,
expressed on a per kilowatthour basis, and does not
include (i) costs associated with any contracts
entered into before the delivery year in which the
customer files the initial compliance report to be
eligible for participation in the self-direct program,
and (ii) costs associated with procuring renewable
energy credits through existing and future contracts
through the Adjustable Block Program, subsection (c-5)
of this Section 1-75, and the Solar for All Program.
The Agency shall assist the Commission in determining

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the current and future costs. The Agency must
determine the self-direct credit amount for new and
existing eligible self-direct customers and submit
this to the Commission in an annual compliance filing.
The Commission must approve the self-direct credit
amount by June 1, 2023 and June 1 of each delivery year
thereafter.
(5) Customers described in this subparagraph (R)
shall apply, on a form developed by the Agency, to the
Agency to be designated as a self-direct eligible
customer. Once the Agency determines that a
self-direct customer is eligible for participation in
the program, the self-direct customer will remain
eligible until the end of the term of the contract.
Thereafter, application may be made not less than 12
months before the filing date of the long-term
renewable resources procurement plan described in this
Act. At a minimum, such application shall contain the
following:
(i) the customer's certification that, at the
time of the customer's application, the customer
qualifies to be a self-direct eligible customer,
including documents demonstrating that
qualification;
(ii) the customer's certification that the
customer has entered into or will enter into by

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the beginning of the applicable procurement year,
one or more bilateral contracts for new wind
projects or new photovoltaic projects, including
supporting documentation;
(iii) certification that the contract or
contracts for new renewable energy resources are
long-term contracts with term lengths of at least
10 years, including supporting documentation;
(iv) certification of the quantities of
renewable energy credits that the customer will
purchase each year under such contract or
contracts, including supporting documentation;
(v) proof that the contract is sufficient to
produce renewable energy credits to be equivalent
in volume to at least 40% of the large energy
customer's usage from the previous delivery year,
measured to the nearest megawatt-hour; and
(vi) certification that the customer intends
to maintain the contract for the duration of the
length of the contract.
(6) If a customer receives the self-direct credit
but fails to properly procure and retire renewable
energy credits as required under this subparagraph
(R), the Commission, on petition from the Agency and
after notice and hearing, may direct such customer's
utility to recover the cost of the wrongfully received

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self-direct credits plus interest through an adder to
charges assessed pursuant to Section 16-108 of the
Public Utilities Act. Self-direct customers who
knowingly fail to properly procure and retire
renewable energy credits and do not notify the Agency
are ineligible for continued participation in the
self-direct renewable portfolio standard compliance
program.
(2) (Blank).
(3) (Blank).
(4) The electric utility shall retire all renewable
energy credits used to comply with the standard.
(5) Beginning with the 2010 delivery year and ending
June 1, 2017, an electric utility subject to this
subsection (c) shall apply the lesser of the maximum
alternative compliance payment rate or the most recent
estimated alternative compliance payment rate for its
service territory for the corresponding compliance period,
established pursuant to subsection (d) of Section 16-115D
of the Public Utilities Act to its retail customers that
take service pursuant to the electric utility's hourly
pricing tariff or tariffs. The electric utility shall
retain all amounts collected as a result of the
application of the alternative compliance payment rate or
rates to such customers, and, beginning in 2011, the
utility shall include in the information provided under

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item (1) of subsection (d) of Section 16-111.5 of the
Public Utilities Act the amounts collected under the
alternative compliance payment rate or rates for the prior
year ending May 31. Notwithstanding any limitation on the
procurement of renewable energy resources imposed by item
(2) of this subsection (c), the Agency shall increase its
spending on the purchase of renewable energy resources to
be procured by the electric utility for the next plan year
by an amount equal to the amounts collected by the utility
under the alternative compliance payment rate or rates in
the prior year ending May 31.
(6) The electric utility shall be entitled to recover
all of its costs associated with the procurement of
renewable energy credits under plans approved under this
Section and Section 16-111.5 of the Public Utilities Act.
These costs shall include associated reasonable expenses
for implementing the procurement programs, including, but
not limited to, the costs of administering and evaluating
the Adjustable Block program, through an automatic
adjustment clause tariff in accordance with subsection (k)
of Section 16-108 of the Public Utilities Act.
(7) Renewable energy credits procured from new
photovoltaic projects or new distributed renewable energy
generation devices under this Section after June 1, 2017
(the effective date of Public Act 99-906) must be procured
from devices installed by a qualified person in compliance

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with the requirements of Section 16-128A of the Public
Utilities Act and any rules or regulations adopted
thereunder.
In meeting the renewable energy requirements of this
subsection (c), to the extent feasible and consistent with
State and federal law, the renewable energy credit
procurements, Adjustable Block solar program, and
community renewable generation program shall provide
employment opportunities for all segments of the
population and workforce, including minority-owned and
female-owned business enterprises, and shall not,
consistent with State and federal law, discriminate based
on race or socioeconomic status.
(c-5) Procurement of renewable energy credits from new
renewable energy facilities installed at or adjacent to the
sites of electric generating facilities that burn or burned
coal as their primary fuel source.
(1) In addition to the procurement of renewable energy
credits pursuant to long-term renewable resources
procurement plans in accordance with subsection (c) of
this Section and Section 16-111.5 of the Public Utilities
Act, the Agency shall conduct procurement events in
accordance with this subsection (c-5) for the procurement
by electric utilities that served more than 300,000 retail
customers in this State as of January 1, 2019 of renewable
energy credits from new renewable energy facilities to be

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installed at or adjacent to the sites of electric
generating facilities that, as of January 1, 2016, burned
coal as their primary fuel source and meet the other
criteria specified in this subsection (c-5). For purposes
of this subsection (c-5), "new renewable energy facility"
means a new utility-scale solar project as defined in this
Section 1-75. The renewable energy credits procured
pursuant to this subsection (c-5) may be included or
counted for purposes of compliance with the amounts of
renewable energy credits required to be procured pursuant
to subsection (c) of this Section to the extent that there
are otherwise shortfalls in compliance with such
requirements. The procurement of renewable energy credits
by electric utilities pursuant to this subsection (c-5)
shall be funded solely by revenues collected from the Coal
to Solar and Energy Storage Initiative Charge provided for
in this subsection (c-5) and subsection (i-5) of Section
16-108 of the Public Utilities Act, shall not be funded by
revenues collected through any of the other funding
mechanisms provided for in subsection (c) of this Section,
and shall not be subject to the limitation imposed by
subsection (c) on charges to retail customers for costs to
procure renewable energy resources pursuant to subsection
(c), and shall not be subject to any other requirements or
limitations of subsection (c).
(2) The Agency shall conduct 2 procurement events to

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select owners of electric generating facilities meeting
the eligibility criteria specified in this subsection
(c-5) to enter into long-term contracts to sell renewable
energy credits to electric utilities serving more than
300,000 retail customers in this State as of January 1,
2019. The first procurement event shall be conducted no
later than March 31, 2022, unless the Agency elects to
delay it, until no later than May 1, 2022, due to its
overall volume of work, and shall be to select owners of
electric generating facilities located in this State and
south of federal Interstate Highway 80 that meet the
eligibility criteria specified in this subsection (c-5).
The second procurement event shall be conducted no sooner
than September 30, 2022 and no later than October 31, 2022
and shall be to select owners of electric generating
facilities located anywhere in this State that meet the
eligibility criteria specified in this subsection (c-5).
The Agency shall establish and announce a time period,
which shall begin no later than 30 days prior to the
scheduled date for the procurement event, during which
applicants may submit applications to be selected as
suppliers of renewable energy credits pursuant to this
subsection (c-5). The eligibility criteria for selection
as a supplier of renewable energy credits pursuant to this
subsection (c-5) shall be as follows:
(A) The applicant owns an electric generating

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facility located in this State that: (i) as of January
1, 2016, burned coal as its primary fuel to generate
electricity; and (ii) has, or had prior to retirement,
an electric generating capacity of at least 150
megawatts. The electric generating facility can be
either: (i) retired as of the date of the procurement
event; or (ii) still operating as of the date of the
procurement event.
(B) The applicant is not (i) an electric
cooperative as defined in Section 3-119 of the Public
Utilities Act, or (ii) an entity described in
subsection (b)(1) of Section 3-105 of the Public
Utilities Act, or an association or consortium of or
an entity owned by entities described in (i) or (ii);
and the coal-fueled electric generating facility was
at one time owned, in whole or in part, by a public
utility as defined in Section 3-105 of the Public
Utilities Act.
(C) If participating in the first procurement
event, the applicant proposes and commits to construct
and operate, at the site, and if necessary for
sufficient space on property adjacent to the existing
property, at which the electric generating facility
identified in paragraph (A) is located: (i) a new
renewable energy facility of at least 20 megawatts but
no more than 100 megawatts of electric generating

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capacity, and (ii) an energy storage facility having a
storage capacity equal to at least 2 megawatts and at
most 10 megawatts. If participating in the second
procurement event, the applicant proposes and commits
to construct and operate, at the site, and if
necessary for sufficient space on property adjacent to
the existing property, at which the electric
generating facility identified in paragraph (A) is
located: (i) a new renewable energy facility of at
least 5 megawatts but no more than 20 megawatts of
electric generating capacity, and (ii) an energy
storage facility having a storage capacity equal to at
least 0.5 megawatts and at most one megawatt.
(D) The applicant agrees that the new renewable
energy facility and the energy storage facility will
be constructed or installed by a qualified entity or
entities in compliance with the requirements of
subsection (g) of Section 16-128A of the Public
Utilities Act and any rules adopted thereunder.
(E) The applicant agrees that personnel operating
the new renewable energy facility and the energy
storage facility will have the requisite skills,
knowledge, training, experience, and competence, which
may be demonstrated by completion or current
participation and ultimate completion by employees of
an accredited or otherwise recognized apprenticeship

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program for the employee's particular craft, trade, or
skill, including through training and education
courses and opportunities offered by the owner to
employees of the coal-fueled electric generating
facility or by previous employment experience
performing the employee's particular work skill or
function.
(F) The applicant commits that not less than the
prevailing wage, as determined pursuant to the
Prevailing Wage Act, will be paid to the applicant's
employees engaged in construction activities
associated with the new renewable energy facility and
the new energy storage facility and to the employees
of applicant's contractors engaged in construction
activities associated with the new renewable energy
facility and the new energy storage facility, and
that, on or before the commercial operation date of
the new renewable energy facility, the applicant shall
file a report with the Agency certifying that the
requirements of this subparagraph (F) have been met.
(G) The applicant commits that if selected, it
will negotiate a project labor agreement for the
construction of the new renewable energy facility and
associated energy storage facility that includes
provisions requiring the parties to the agreement to
work together to establish diversity threshold

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requirements and to ensure best efforts to meet
diversity targets, improve diversity at the applicable
job site, create diverse apprenticeship opportunities,
and create opportunities to employ former coal-fired
power plant workers.
(H) The applicant commits to enter into a contract
or contracts for the applicable duration to provide
specified numbers of renewable energy credits each
year from the new renewable energy facility to
electric utilities that served more than 300,000
retail customers in this State as of January 1, 2019,
at a price of $30 per renewable energy credit. The
price per renewable energy credit shall be fixed at
$30 for the applicable duration and the renewable
energy credits shall not be indexed renewable energy
credits as provided for in item (v) of subparagraph
(G) of paragraph (1) of subsection (c) of Section 1-75
of this Act. The applicable duration of each contract
shall be 20 years, unless the applicant is physically
interconnected to the PJM Interconnection, LLC
transmission grid and had a generating capacity of at
least 1,200 megawatts as of January 1, 2021, in which
case the applicable duration of the contract shall be
15 years.
(I) The applicant's application is certified by an
officer of the applicant and by an officer of the

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applicant's ultimate parent company, if any.
(3) An applicant may submit applications to contract
to supply renewable energy credits from more than one new
renewable energy facility to be constructed at or adjacent
to one or more qualifying electric generating facilities
owned by the applicant. The Agency may select new
renewable energy facilities to be located at or adjacent
to the sites of more than one qualifying electric
generation facility owned by an applicant to contract with
electric utilities to supply renewable energy credits from
such facilities.
(4) The Agency shall assess fees to each applicant to
recover the Agency's costs incurred in receiving and
evaluating applications, conducting the procurement event,
developing contracts for sale, delivery and purchase of
renewable energy credits, and monitoring the
administration of such contracts, as provided for in this
subsection (c-5), including fees paid to a procurement
administrator retained by the Agency for one or more of
these purposes.
(5) The Agency shall select the applicants and the new
renewable energy facilities to contract with electric
utilities to supply renewable energy credits in accordance
with this subsection (c-5). In the first procurement
event, the Agency shall select applicants and new
renewable energy facilities to supply renewable energy

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credits, at a price of $30 per renewable energy credit,
aggregating to no less than 400,000 renewable energy
credits per year for the applicable duration, assuming
sufficient qualifying applications to supply, in the
aggregate, at least that amount of renewable energy
credits per year; and not more than 580,000 renewable
energy credits per year for the applicable duration. In
the second procurement event, the Agency shall select
applicants and new renewable energy facilities to supply
renewable energy credits, at a price of $30 per renewable
energy credit, aggregating to no more than 625,000
renewable energy credits per year less the amount of
renewable energy credits each year contracted for as a
result of the first procurement event, for the applicable
durations. The number of renewable energy credits to be
procured as specified in this paragraph (5) shall not be
reduced based on renewable energy credits procured in the
self-direct renewable energy credit compliance program
established pursuant to subparagraph (R) of paragraph (1)
of subsection (c) of Section 1-75.
(6) The obligation to purchase renewable energy
credits from the applicants and their new renewable energy
facilities selected by the Agency shall be allocated to
the electric utilities based on their respective
percentages of kilowatthours delivered to delivery
services customers to the aggregate kilowatthour

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deliveries by the electric utilities to delivery services
customers for the year ended December 31, 2021. In order
to achieve these allocation percentages between or among
the electric utilities, the Agency shall require each
applicant that is selected in the procurement event to
enter into a contract with each electric utility for the
sale and purchase of renewable energy credits from each
new renewable energy facility to be constructed and
operated by the applicant, with the sale and purchase
obligations under the contracts to aggregate to the total
number of renewable energy credits per year to be supplied
by the applicant from the new renewable energy facility.
(7) The Agency shall submit its proposed selection of
applicants, new renewable energy facilities to be
constructed, and renewable energy credit amounts for each
procurement event to the Commission for approval. The
Commission shall, within 2 business days after receipt of
the Agency's proposed selections, approve the proposed
selections if it determines that the applicants and the
new renewable energy facilities to be constructed meet the
selection criteria set forth in this subsection (c-5) and
that the Agency seeks approval for contracts of applicable
durations aggregating to no more than the maximum amount
of renewable energy credits per year authorized by this
subsection (c-5) for the procurement event, at a price of
$30 per renewable energy credit.

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(8) The Agency, in conjunction with its procurement
administrator if one is retained, the electric utilities,
and potential applicants for contracts to produce and
supply renewable energy credits pursuant to this
subsection (c-5), shall develop a standard form contract
for the sale, delivery and purchase of renewable energy
credits pursuant to this subsection (c-5). Each contract
resulting from the first procurement event shall allow for
a commercial operation date for the new renewable energy
facility of either June 1, 2023 or June 1, 2024, with such
dates subject to adjustment as provided in this paragraph.
Each contract resulting from the second procurement event
shall provide for a commercial operation date on June 1
next occurring up to 48 months after execution of the
contract. Each contract shall provide that the owner shall
receive payments for renewable energy credits for the
applicable durations beginning with the commercial
operation date of the new renewable energy facility. The
form contract shall provide for adjustments to the
commercial operation and payment start dates as needed due
to any delays in completing the procurement and
contracting processes, in finalizing interconnection
agreements and installing interconnection facilities, and
in obtaining other necessary governmental permits and
approvals. The form contract shall be, to the maximum
extent possible, consistent with standard electric

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industry contracts for sale, delivery, and purchase of
renewable energy credits while taking into account the
specific requirements of this subsection (c-5). The form
contract shall provide for over-delivery and
under-delivery of renewable energy credits within
reasonable ranges during each 12-month period and penalty,
default, and enforcement provisions for failure of the
selling party to deliver renewable energy credits as
specified in the contract and to comply with the
requirements of this subsection (c-5). The standard form
contract shall specify that all renewable energy credits
delivered to the electric utility pursuant to the contract
shall be retired. The Agency shall make the proposed
contracts available for a reasonable period for comment by
potential applicants, and shall publish the final form
contract at least 30 days before the date of the first
procurement event.
(9) Coal to Solar and Energy Storage Initiative
Charge.
(A) By no later than July 1, 2022, each electric
utility that served more than 300,000 retail customers
in this State as of January 1, 2019 shall file a tariff
with the Commission for the billing and collection of
a Coal to Solar and Energy Storage Initiative Charge
in accordance with subsection (i-5) of Section 16-108
of the Public Utilities Act, with such tariff to be

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effective, following review and approval or
modification by the Commission, beginning January 1,
2023. The tariff shall provide for the calculation and
setting of the electric utility's Coal to Solar and
Energy Storage Initiative Charge to collect revenues
estimated to be sufficient, in the aggregate, (i) to
enable the electric utility to pay for the renewable
energy credits it has contracted to purchase in the
delivery year beginning June 1, 2023 and each delivery
year thereafter from new renewable energy facilities
located at the sites of qualifying electric generating
facilities, and (ii) to fund the grant payments to be
made in each delivery year by the Department of
Commerce and Economic Opportunity, or any successor
department or agency, which shall be referred to in
this subsection (c-5) as the Department, pursuant to
paragraph (10) of this subsection (c-5). The electric
utility's tariff shall provide for the billing and
collection of the Coal to Solar and Energy Storage
Initiative Charge on each kilowatthour of electricity
delivered to its delivery services customers within
its service territory and shall provide for an annual
reconciliation of revenues collected with actual
costs, in accordance with subsection (i-5) of Section
16-108 of the Public Utilities Act.
(B) Each electric utility shall remit on a monthly

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basis to the State Treasurer, for deposit in the Coal
to Solar and Energy Storage Initiative Fund provided
for in this subsection (c-5), the electric utility's
collections of the Coal to Solar and Energy Storage
Initiative Charge in the amount estimated to be needed
by the Department for grant payments pursuant to grant
contracts entered into by the Department pursuant to
paragraph (10) of this subsection (c-5).
(10) Coal to Solar and Energy Storage Initiative Fund.
(A) The Coal to Solar and Energy Storage
Initiative Fund is established as a special fund in
the State treasury. The Coal to Solar and Energy
Storage Initiative Fund is authorized to receive, by
statutory deposit, that portion specified in item (B)
of paragraph (9) of this subsection (c-5) of moneys
collected by electric utilities through imposition of
the Coal to Solar and Energy Storage Initiative Charge
required by this subsection (c-5). The Coal to Solar
and Energy Storage Initiative Fund shall be
administered by the Department to provide grants to
support the installation and operation of energy
storage facilities at the sites of qualifying electric
generating facilities meeting the criteria specified
in this paragraph (10).
(B) The Coal to Solar and Energy Storage
Initiative Fund shall not be subject to sweeps,

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administrative charges, or chargebacks, including, but
not limited to, those authorized under Section 8h of
the State Finance Act, that would in any way result in
the transfer of those funds from the Coal to Solar and
Energy Storage Initiative Fund to any other fund of
this State or in having any such funds utilized for any
purpose other than the express purposes set forth in
this paragraph (10).
(C) The Department shall utilize up to
$280,500,000 in the Coal to Solar and Energy Storage
Initiative Fund for grants, assuming sufficient
qualifying applicants, to support installation of
energy storage facilities at the sites of up to 3
qualifying electric generating facilities located in
the Midcontinent Independent System Operator, Inc.,
region in Illinois and the sites of up to 2 qualifying
electric generating facilities located in the PJM
Interconnection, LLC region in Illinois that meet the
criteria set forth in this subparagraph (C). The
criteria for receipt of a grant pursuant to this
subparagraph (C) are as follows:
(1) the electric generating facility at the
site has, or had prior to retirement, an electric
generating capacity of at least 150 megawatts;
(2) the electric generating facility burns (or
burned prior to retirement) coal as its primary

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source of fuel;
(3) if the electric generating facility is
retired, it was retired subsequent to January 1,
2016;
(4) the owner of the electric generating
facility has not been selected by the Agency
pursuant to this subsection (c-5) of this Section
to enter into a contract to sell renewable energy
credits to one or more electric utilities from a
new renewable energy facility located or to be
located at or adjacent to the site at which the
electric generating facility is located;
(5) the electric generating facility located
at the site was at one time owned, in whole or in
part, by a public utility as defined in Section
3-105 of the Public Utilities Act;
(6) the electric generating facility at the
site is not owned by (i) an electric cooperative
as defined in Section 3-119 of the Public
Utilities Act, or (ii) an entity described in
subsection (b)(1) of Section 3-105 of the Public
Utilities Act, or an association or consortium of
or an entity owned by entities described in items
(i) or (ii);
(7) the proposed energy storage facility at
the site will have energy storage capacity of at

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least 37 megawatts;
(8) the owner commits to place the energy
storage facility into commercial operation on
either June 1, 2023, June 1, 2024, or June 1, 2025,
with such date subject to adjustment as needed due
to any delays in completing the grant contracting
process, in finalizing interconnection agreements
and in installing interconnection facilities, and
in obtaining necessary governmental permits and
approvals;
(9) the owner agrees that the new energy
storage facility will be constructed or installed
by a qualified entity or entities consistent with
the requirements of subsection (g) of Section
16-128A of the Public Utilities Act and any rules
adopted under that Section;
(10) the owner agrees that personnel operating
the energy storage facility will have the
requisite skills, knowledge, training, experience,
and competence, which may be demonstrated by
completion or current participation and ultimate
completion by employees of an accredited or
otherwise recognized apprenticeship program for
the employee's particular craft, trade, or skill,
including through training and education courses
and opportunities offered by the owner to

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employees of the coal-fueled electric generating
facility or by previous employment experience
performing the employee's particular work skill or
function;
(11) the owner commits that not less than the
prevailing wage, as determined pursuant to the
Prevailing Wage Act, will be paid to the owner's
employees engaged in construction activities
associated with the new energy storage facility
and to the employees of the owner's contractors
engaged in construction activities associated with
the new energy storage facility, and that, on or
before the commercial operation date of the new
energy storage facility, the owner shall file a
report with the Department certifying that the
requirements of this subparagraph (11) have been
met; and
(12) the owner commits that if selected to
receive a grant, it will negotiate a project labor
agreement for the construction of the new energy
storage facility that includes provisions
requiring the parties to the agreement to work
together to establish diversity threshold
requirements and to ensure best efforts to meet
diversity targets, improve diversity at the
applicable job site, create diverse apprenticeship

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opportunities, and create opportunities to employ
former coal-fired power plant workers.
The Department shall accept applications for this
grant program until March 31, 2022 and shall announce
the award of grants no later than June 1, 2022. The
Department shall make the grant payments to a
recipient in equal annual amounts for 10 years
following the date the energy storage facility is
placed into commercial operation. The annual grant
payments to a qualifying energy storage facility shall
be $110,000 per megawatt of energy storage capacity,
with total annual grant payments pursuant to this
subparagraph (C) for qualifying energy storage
facilities not to exceed $28,050,000 in any year.
(D) Grants of funding for energy storage
facilities pursuant to subparagraph (C) of this
paragraph (10), from the Coal to Solar and Energy
Storage Initiative Fund, shall be memorialized in
grant contracts between the Department and the
recipient. The grant contracts shall specify the date
or dates in each year on which the annual grant
payments shall be paid.
(E) All disbursements from the Coal to Solar and
Energy Storage Initiative Fund shall be made only upon
warrants of the Comptroller drawn upon the Treasurer
as custodian of the Fund upon vouchers signed by the

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Director of the Department or by the person or persons
designated by the Director of the Department for that
purpose. The Comptroller is authorized to draw the
warrants upon vouchers so signed. The Treasurer shall
accept all written warrants so signed and shall be
released from liability for all payments made on those
warrants.
(11) Diversity, equity, and inclusion plans.
(A) Each applicant selected in a procurement event
to contract to supply renewable energy credits in
accordance with this subsection (c-5) and each owner
selected by the Department to receive a grant or
grants to support the construction and operation of a
new energy storage facility or facilities in
accordance with this subsection (c-5) shall, within 60
days following the Commission's approval of the
applicant to contract to supply renewable energy
credits or within 60 days following execution of a
grant contract with the Department, as applicable,
submit to the Commission a diversity, equity, and
inclusion plan setting forth the applicant's or
owner's numeric goals for the diversity composition of
its supplier entities for the new renewable energy
facility or new energy storage facility, as
applicable, which shall be referred to for purposes of
this paragraph (11) as the project, and the

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applicant's or owner's action plan and schedule for
achieving those goals.
(B) For purposes of this paragraph (11), diversity
composition shall be based on the percentage, which
shall be a minimum of 25%, of eligible expenditures
for contract awards for materials and services (which
shall be defined in the plan) to business enterprises
owned by minority persons, women, or persons with
disabilities as defined in Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act, to LGBTQ business enterprises, to
veteran-owned business enterprises, and to business
enterprises located in environmental justice
communities. The diversity composition goals of the
plan may include eligible expenditures in areas for
vendor or supplier opportunities in addition to
development and construction of the project, and may
exclude from eligible expenditures materials and
services with limited market availability, limited
production and availability from suppliers in the
United States, such as solar panels and storage
batteries, and material and services that are subject
to critical energy infrastructure or cybersecurity
requirements or restrictions. The plan may provide
that the diversity composition goals may be met
through Tier 1 Direct or Tier 2 subcontracting

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expenditures or a combination thereof for the project.
(C) The plan shall provide for, but not be limited
to: (i) internal initiatives, including multi-tier
initiatives, by the applicant or owner, or by its
engineering, procurement and construction contractor
if one is used for the project, which for purposes of
this paragraph (11) shall be referred to as the EPC
contractor, to enable diverse businesses to be
considered fairly for selection to provide materials
and services; (ii) requirements for the applicant or
owner or its EPC contractor to proactively solicit and
utilize diverse businesses to provide materials and
services; and (iii) requirements for the applicant or
owner or its EPC contractor to hire a diverse
workforce for the project. The plan shall include a
description of the applicant's or owner's diversity
recruiting efforts both for the project and for other
areas of the applicant's or owner's business
operations. The plan shall provide for the imposition
of financial penalties on the applicant's or owner's
EPC contractor for failure to exercise best efforts to
comply with and execute the EPC contractor's diversity
obligations under the plan. The plan may provide for
the applicant or owner to set aside a portion of the
work on the project to serve as an incubation program
for qualified businesses, as specified in the plan,

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owned by minority persons, women, persons with
disabilities, LGBTQ persons, and veterans, and
businesses located in environmental justice
communities, seeking to enter the renewable energy
industry.
(D) The applicant or owner may submit a revised or
updated plan to the Commission from time to time as
circumstances warrant. The applicant or owner shall
file annual reports with the Commission detailing the
applicant's or owner's progress in implementing its
plan and achieving its goals and any modifications the
applicant or owner has made to its plan to better
achieve its diversity, equity and inclusion goals. The
applicant or owner shall file a final report on the
fifth June 1 following the commercial operation date
of the new renewable energy resource or new energy
storage facility, but the applicant or owner shall
thereafter continue to be subject to applicable
reporting requirements of Section 5-117 of the Public
Utilities Act.
(c-10) Equity accountability system. It is the purpose of
this subsection (c-10) to create an equity accountability
system, which includes the minimum equity standards for all
renewable energy procurements, the equity category of the
Adjustable Block Program, and the equity prioritization for
noncompetitive procurements, that is successful in advancing

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priority access to the clean energy economy for businesses and
workers from communities that have been excluded from economic
opportunities in the energy sector, have been subject to
disproportionate levels of pollution, and have
disproportionately experienced negative public health
outcomes. Further, it is the purpose of this subsection to
ensure that this equity accountability system is successful in
advancing equity across Illinois by providing access to the
clean energy economy for businesses and workers from
communities that have been historically excluded from economic
opportunities in the energy sector, have been subject to
disproportionate levels of pollution, and have
disproportionately experienced negative public health
outcomes.
(1) Minimum equity standards. The Agency shall create
programs with the purpose of increasing access to and
development of equity eligible contractors, who are prime
contractors and subcontractors, across all of the programs
it manages. All applications for renewable energy credit
procurements shall comply with specific minimum equity
commitments. Starting in the delivery year immediately
following the next long-term renewable resources
procurement plan, at least 10% of the project workforce
for each entity participating in a procurement program
outlined in this subsection (c-10) must be done by equity
eligible persons or equity eligible contractors. The

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Agency shall increase the minimum percentage each delivery
year thereafter by increments that ensure a statewide
average of 30% of the project workforce for each entity
participating in a procurement program is done by equity
eligible persons or equity eligible contractors by 2030.
The Agency shall propose a schedule of percentage
increases to the minimum equity standards in its draft
revised renewable energy resources procurement plan
submitted to the Commission for approval pursuant to
paragraph (5) of subsection (b) of Section 16-111.5 of the
Public Utilities Act. In determining these annual
increases, the Agency shall have the discretion to
establish different minimum equity standards for different
types of procurements and different regions of the State
if the Agency finds that doing so will further the
purposes of this subsection (c-10). The proposed schedule
of annual increases shall be revisited and updated on an
annual basis. Revisions shall be developed with
stakeholder input, including from equity eligible persons,
equity eligible contractors, clean energy industry
representatives, and community-based organizations that
work with such persons and contractors.
(A) At the start of each delivery year, the Agency
shall require a compliance plan from each entity
participating in a procurement program of subsection
(c) of this Section that demonstrates how they will

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achieve compliance with the minimum equity standard
percentage for work completed in that delivery year.
If an entity applies for its approved vendor or
designee status between delivery years, the Agency
shall require a compliance plan at the time of
application.
(B) Halfway through each delivery year, the Agency
shall require each entity participating in a
procurement program to confirm that it will achieve
compliance in that delivery year, when applicable. The
Agency may offer corrective action plans to entities
that are not on track to achieve compliance.
(C) At the end of each delivery year, each entity
participating and completing work in that delivery
year in a procurement program of subsection (c) shall
submit a report to the Agency that demonstrates how it
achieved compliance with the minimum equity standards
percentage for that delivery year.
(D) The Agency shall prohibit participation in
procurement programs by an approved vendor or
designee, as applicable, or entities with which an
approved vendor or designee, as applicable, shares a
common parent company if an approved vendor or
designee, as applicable, failed to meet the minimum
equity standards for the prior delivery year. Waivers
approved for lack of equity eligible persons or equity

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eligible contractors in a geographic area of a project
shall not count against the approved vendor or
designee. The Agency shall offer a corrective action
plan for any such entities to assist them in obtaining
compliance and shall allow continued access to
procurement programs upon an approved vendor or
designee demonstrating compliance.
(E) The Agency shall pursue efficiencies achieved
by combining with other approved vendor or designee
reporting.
(2) Equity accountability system within the Adjustable
Block program. The equity category described in item (vi)
of subparagraph (K) of subsection (c) is only available to
applicants that are equity eligible contractors.
(3) Equity accountability system within competitive
procurements. Through its long-term renewable resources
procurement plan, the Agency shall develop requirements
for ensuring that competitive procurement processes,
including utility-scale solar, utility-scale wind, and
brownfield site photovoltaic projects, advance the equity
goals of this subsection (c-10). Subject to Commission
approval, the Agency shall develop bid application
requirements and a bid evaluation methodology for ensuring
that utilization of equity eligible contractors, whether
as bidders or as participants on project development, is
optimized, including requiring that winning or successful

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applicants for utility-scale projects are or will partner
with equity eligible contractors and giving preference to
bids through which a higher portion of contract value
flows to equity eligible contractors. To the extent
practicable, entities participating in competitive
procurements shall also be required to meet all the equity
accountability requirements for approved vendors and their
designees under this subsection (c-10). In developing
these requirements, the Agency shall also consider whether
equity goals can be further advanced through additional
measures.
(4) In the first revision to the long-term renewable
energy resources procurement plan and each revision
thereafter, the Agency shall include the following:
(A) The current status and number of equity
eligible contractors listed in the Energy Workforce
Equity Database designed in subsection (c-25),
including the number of equity eligible contractors
with current certifications as issued by the Agency.
(B) A mechanism for measuring, tracking, and
reporting project workforce at the approved vendor or
designee level, as applicable, which shall include a
measurement methodology and records to be made
available for audit by the Agency or the Program
Administrator.
(C) A program for approved vendors, designees,

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eligible persons, and equity eligible contractors to
receive trainings, guidance, and other support from
the Agency or its designee regarding the equity
category outlined in item (vi) of subparagraph (K) of
paragraph (1) of subsection (c) and in meeting the
minimum equity standards of this subsection (c-10).
(D) A process for certifying equity eligible
contractors and equity eligible persons. The
certification process shall coordinate with the Energy
Workforce Equity Database set forth in subsection
(c-25).
(E) An application for waiver of the minimum
equity standards of this subsection, which the Agency
shall have the discretion to grant in rare
circumstances. The Agency may grant such a waiver
where the applicant provides evidence of significant
efforts toward meeting the minimum equity commitment,
including: use of the Energy Workforce Equity
Database; efforts to hire or contract with entities
that hire eligible persons; and efforts to establish
contracting relationships with eligible contractors.
The Agency shall support applicants in understanding
the Energy Workforce Equity Database and other
resources for pursuing compliance of the minimum
equity standards. Waivers shall be project-specific,
unless the Agency deems it necessary to grant a waiver

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across a portfolio of projects, and in effect for no
longer than one year. Any waiver extension or
subsequent waiver request from an applicant shall be
subject to the requirements of this Section and shall
specify efforts made to reach compliance. When
considering whether to grant a waiver, and to what
extent, the Agency shall consider the degree to which
similarly situated applicants have been able to meet
these minimum equity commitments. For repeated waiver
requests for specific lack of eligible persons or
eligible contractors available, the Agency shall make
recommendations to target recruitment to add such
eligible persons or eligible contractors to the
database.
(5) The Agency shall collect information about work on
projects or portfolios of projects subject to these
minimum equity standards to ensure compliance with this
subsection (c-10). Reporting in furtherance of this
requirement may be combined with other annual reporting
requirements. Such reporting shall include proof of
certification of each equity eligible contractor or equity
eligible person during the applicable time period.
(6) The Agency shall keep confidential all information
and communication that provides private or personal
information.
(7) Modifications to the equity accountability system.

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As part of the update of the long-term renewable resources
procurement plan to be initiated in 2023, or sooner if the
Agency deems necessary, the Agency shall determine the
extent to which the equity accountability system described
in this subsection (c-10) has advanced the goals of this
amendatory Act of the 102nd General Assembly, including
through the inclusion of equity eligible persons and
equity eligible contractors in renewable energy credit
projects. If the Agency finds that the equity
accountability system has failed to meet those goals to
its fullest potential, the Agency may revise the following
criteria for future Agency procurements: (A) the
percentage of project workforce, or other appropriate
workforce measure, certified as equity eligible persons or
equity eligible contractors; (B) definitions for equity
investment eligible persons and equity investment eligible
community; and (C) such other modifications necessary to
advance the goals of this amendatory Act of the 102nd
General Assembly effectively. Such revised criteria may
also establish distinct equity accountability systems for
different types of procurements or different regions of
the State if the Agency finds that doing so will further
the purposes of such programs. Revisions shall be
developed with stakeholder input, including from equity
eligible persons, equity eligible contractors, and
community-based organizations that work with such persons

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and contractors.
(c-15) Racial discrimination elimination powers and
process.
(1) Purpose. It is the purpose of this subsection to
empower the Agency and other State actors to remedy racial
discrimination in Illinois' clean energy economy as
effectively and expediently as possible, including through
the use of race-conscious remedies, such as race-conscious
contracting and hiring goals, as consistent with State and
federal law.
(2) Racial disparity and discrimination review
process.
(A) Within one year after awarding contracts using
the equity actions processes established in this
Section, the Agency shall publish a report evaluating
the effectiveness of the equity actions point criteria
of this Section in increasing participation of equity
eligible persons and equity eligible contractors. The
report shall disaggregate participating workers and
contractors by race and ethnicity. The report shall be
forwarded to the Governor, the General Assembly, and
the Illinois Commerce Commission and be made available
to the public.
(B) As soon as is practicable thereafter, the
Agency, in consultation with the Department of
Commerce and Economic Opportunity, Department of

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Labor, and other agencies that may be relevant, shall
commission and publish a disparity and availability
study that measures the presence and impact of
discrimination on minority businesses and workers in
Illinois' clean energy economy. The Agency may hire
consultants and experts to conduct the disparity and
availability study, with the retention of those
consultants and experts exempt from the requirements
of Section 20-10 of the Illinois Procurement Code. The
Illinois Power Agency shall forward a copy of its
findings and recommendations to the Governor, the
General Assembly, and the Illinois Commerce
Commission. If the disparity and availability study
establishes a strong basis in evidence that there is
discrimination in Illinois' clean energy economy, the
Agency, Department of Commerce and Economic
Opportunity, Department of Labor, Department of
Corrections, and other appropriate agencies shall take
appropriate remedial actions, including race-conscious
remedial actions as consistent with State and federal
law, to effectively remedy this discrimination. Such
remedies may include modification of the equity
accountability system as described in subsection
(c-10).
(c-20) Program data collection.
(1) Purpose. Data collection, data analysis, and

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reporting are critical to ensure that the benefits of the
clean energy economy provided to Illinois residents and
businesses are equitably distributed across the State. The
Agency shall collect data from program applicants in order
to track and improve equitable distribution of benefits
across Illinois communities for all procurements the
Agency conducts. The Agency shall use this data to, among
other things, measure any potential impact of racial
discrimination on the distribution of benefits and provide
information necessary to correct any discrimination
through methods consistent with State and federal law.
(2) Agency collection of program data. The Agency
shall collect demographic and geographic data for each
entity awarded contracts under any Agency-administered
program.
(3) Required information to be collected. The Agency
shall collect the following information from applicants
and program participants where applicable:
(A) demographic information, including racial or
ethnic identity for real persons employed, contracted,
or subcontracted through the program and owners of
businesses or entities that apply to receive renewable
energy credits from the Agency;
(B) geographic location of the residency of real
persons employed, contracted, or subcontracted through
the program and geographic location of the

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headquarters of the business or entity that applies to
receive renewable energy credits from the Agency; and
(C) any other information the Agency determines is
necessary for the purpose of achieving the purpose of
this subsection.
(4) Publication of collected information. The Agency
shall publish, at least annually, information on the
demographics of program participants on an aggregate
basis.
(5) Nothing in this subsection shall be interpreted to
limit the authority of the Agency, or other agency or
department of the State, to require or collect demographic
information from applicants of other State programs.
(c-25) Energy Workforce Equity Database.
(1) The Agency, in consultation with the Department of
Commerce and Economic Opportunity, shall create an Energy
Workforce Equity Database, and may contract with a third
party to do so ("database program administrator"). If the
Department decides to contract with a third party, that
third party shall be exempt from the requirements of
Section 20-10 of the Illinois Procurement Code. The Energy
Workforce Equity Database shall be a searchable database
of suppliers, vendors, and subcontractors for clean energy
industries that is:
(A) publicly accessible;
(B) easy for people to find and use;

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(C) organized by company specialty or field;
(D) region-specific; and
(E) populated with information including, but not
limited to, contacts for suppliers, vendors, or
subcontractors who are minority and women-owned
business enterprise certified or who participate or
have participated in any of the programs described in
this Act.
(2) The Agency shall create an easily accessible,
public facing online tool using the database information
that includes, at a minimum, the following:
(A) a map of environmental justice and equity
investment eligible communities;
(B) job postings and recruiting opportunities;
(C) a means by which recruiting clean energy
companies can find and interact with current or former
participants of clean energy workforce training
programs;
(D) information on workforce training service
providers and training opportunities available to
prospective workers;
(E) renewable energy company diversity reporting;
(F) a list of equity eligible contractors with
their contact information, types of work performed,
and locations worked in;
(G) reporting on outcomes of the programs

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described in the workforce programs of the Energy
Transition Act, including information such as, but not
limited to, retention rate, graduation rate, and
placement rates of trainees; and
(H) information about the Jobs and Environmental
Justice Grant Program, the Clean Energy Jobs and
Justice Fund, and other sources of capital.
(3) The Agency shall ensure the database is regularly
updated to ensure information is current and shall
coordinate with the Department of Commerce and Economic
Opportunity to ensure that it includes information on
individuals and entities that are or have participated in
the Clean Jobs Workforce Network Program, Clean Energy
Contractor Incubator Program, Returning Residents Clean
Jobs Training Program, or Clean Energy Primes Contractor
Accelerator Program.
(c-30) Enforcement of minimum equity standards. All
entities seeking renewable energy credits must submit an
annual report to demonstrate compliance with each of the
equity commitments required under subsection (c-10). If the
Agency concludes the entity has not met or maintained its
minimum equity standards required under the applicable
subparagraphs under subsection (c-10), the Agency shall deny
the entity's ability to participate in procurement programs in
subsection (c), including by withholding approved vendor or
designee status. The Agency may require the entity to enter

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into a corrective action plan. An entity that is not
recertified for failing to meet required equity actions in
subparagraph (c-10) may reapply once they have a corrective
action plan and achieve compliance with the minimum equity
standards.
(d) Clean coal portfolio standard.
(1) The procurement plans shall include electricity
generated using clean coal. Each utility shall enter into
one or more sourcing agreements with the initial clean
coal facility, as provided in paragraph (3) of this
subsection (d), covering electricity generated by the
initial clean coal facility representing at least 5% of
each utility's total supply to serve the load of eligible
retail customers in 2015 and each year thereafter, as
described in paragraph (3) of this subsection (d), subject
to the limits specified in paragraph (2) of this
subsection (d). It is the goal of the State that by January
1, 2025, 25% of the electricity used in the State shall be
generated by cost-effective clean coal facilities. For
purposes of this subsection (d), "cost-effective" means
that the expenditures pursuant to such sourcing agreements
do not cause the limit stated in paragraph (2) of this
subsection (d) to be exceeded and do not exceed cost-based
benchmarks, which shall be developed to assess all
expenditures pursuant to such sourcing agreements covering
electricity generated by clean coal facilities, other than

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the initial clean coal facility, by the procurement
administrator, in consultation with the Commission staff,
Agency staff, and the procurement monitor and shall be
subject to Commission review and approval.
A utility party to a sourcing agreement shall
immediately retire any emission credits that it receives
in connection with the electricity covered by such
agreement.
Utilities shall maintain adequate records documenting
the purchases under the sourcing agreement to comply with
this subsection (d) and shall file an accounting with the
load forecast that must be filed with the Agency by July 15
of each year, in accordance with subsection (d) of Section
16-111.5 of the Public Utilities Act.
A utility shall be deemed to have complied with the
clean coal portfolio standard specified in this subsection
(d) if the utility enters into a sourcing agreement as
required by this subsection (d).
(2) For purposes of this subsection (d), the required
execution of sourcing agreements with the initial clean
coal facility for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) supplied by the electric utility to
eligible retail customers in the planning year ending
immediately prior to the agreement's execution. For
purposes of this subsection (d), the amount paid per

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kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For
purposes of this subsection (d), the total amount paid for
electric service includes without limitation amounts paid
for supply, transmission, distribution, surcharges and
add-on taxes.
Notwithstanding the requirements of this subsection
(d), the total amount paid under sourcing agreements with
clean coal facilities pursuant to the procurement plan for
any given year shall be reduced by an amount necessary to
limit the annual estimated average net increase due to the
costs of these resources included in the amounts paid by
eligible retail customers in connection with electric
service to:
(A) in 2010, no more than 0.5% of the amount paid
per kilowatthour by those customers during the year
ending May 31, 2009;
(B) in 2011, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2010 or 1% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009;
(C) in 2012, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2011 or 1.5% of the
amount paid per kilowatthour by those customers during

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the year ending May 31, 2009;
(D) in 2013, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2012 or 2% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009; and
(E) thereafter, the total amount paid under
sourcing agreements with clean coal facilities
pursuant to the procurement plan for any single year
shall be reduced by an amount necessary to limit the
estimated average net increase due to the cost of
these resources included in the amounts paid by
eligible retail customers in connection with electric
service to no more than the greater of (i) 2.015% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2009 or (ii) the
incremental amount per kilowatthour paid for these
resources in 2013. These requirements may be altered
only as provided by statute.
No later than June 30, 2015, the Commission shall
review the limitation on the total amount paid under
sourcing agreements, if any, with clean coal facilities
pursuant to this subsection (d) and report to the General
Assembly its findings as to whether that limitation unduly
constrains the amount of electricity generated by
cost-effective clean coal facilities that is covered by

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sourcing agreements.
(3) Initial clean coal facility. In order to promote
development of clean coal facilities in Illinois, each
electric utility subject to this Section shall execute a
sourcing agreement to source electricity from a proposed
clean coal facility in Illinois (the "initial clean coal
facility") that will have a nameplate capacity of at least
500 MW when commercial operation commences, that has a
final Clean Air Act permit on June 1, 2009 (the effective
date of Public Act 95-1027), and that will meet the
definition of clean coal facility in Section 1-10 of this
Act when commercial operation commences. The sourcing
agreements with this initial clean coal facility shall be
subject to both approval of the initial clean coal
facility by the General Assembly and satisfaction of the
requirements of paragraph (4) of this subsection (d) and
shall be executed within 90 days after any such approval
by the General Assembly. The Agency and the Commission
shall have authority to inspect all books and records
associated with the initial clean coal facility during the
term of such a sourcing agreement. A utility's sourcing
agreement for electricity produced by the initial clean
coal facility shall include:
(A) a formula contractual price (the "contract
price") approved pursuant to paragraph (4) of this
subsection (d), which shall:

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(i) be determined using a cost of service
methodology employing either a level or deferred
capital recovery component, based on a capital
structure consisting of 45% equity and 55% debt,
and a return on equity as may be approved by the
Federal Energy Regulatory Commission, which in any
case may not exceed the lower of 11.5% or the rate
of return approved by the General Assembly
pursuant to paragraph (4) of this subsection (d);
and
(ii) provide that all miscellaneous net
revenue, including but not limited to net revenue
from the sale of emission allowances, if any,
substitute natural gas, if any, grants or other
support provided by the State of Illinois or the
United States Government, firm transmission
rights, if any, by-products produced by the
facility, energy or capacity derived from the
facility and not covered by a sourcing agreement
pursuant to paragraph (3) of this subsection (d)
or item (5) of subsection (d) of Section 16-115 of
the Public Utilities Act, whether generated from
the synthesis gas derived from coal, from SNG, or
from natural gas, shall be credited against the
revenue requirement for this initial clean coal
facility;

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(B) power purchase provisions, which shall:
(i) provide that the utility party to such
sourcing agreement shall pay the contract price
for electricity delivered under such sourcing
agreement;
(ii) require delivery of electricity to the
regional transmission organization market of the
utility that is party to such sourcing agreement;
(iii) require the utility party to such
sourcing agreement to buy from the initial clean
coal facility in each hour an amount of energy
equal to all clean coal energy made available from
the initial clean coal facility during such hour
times a fraction, the numerator of which is such
utility's retail market sales of electricity
(expressed in kilowatthours sold) in the State
during the prior calendar month and the
denominator of which is the total retail market
sales of electricity (expressed in kilowatthours
sold) in the State by utilities during such prior
month and the sales of electricity (expressed in
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this
subsection (d) and paragraph (5) of subsection (d)
of Section 16-115 of the Public Utilities Act,

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

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of Section 16-115 of the Public Utilities Act,
provided that the amount paid by the utility in
any year will be limited by paragraph (2) of this
subsection (d);
(ii) provide that the utility's payment
obligation in respect of the quantity of
electricity determined pursuant to the preceding
clause (i) shall be limited to an amount equal to
(1) the difference between the contract price
determined pursuant to subparagraph (A) of
paragraph (3) of this subsection (d) and the
day-ahead price for electricity delivered to the
regional transmission organization market of the
utility that is party to such sourcing agreement
(or any successor delivery point at which such
utility's supply obligations are financially
settled on an hourly basis) (the "reference
price") on the day preceding the day on which the
electricity is delivered to the initial clean coal
facility busbar, multiplied by (2) the quantity of
electricity determined pursuant to the preceding
clause (i); and
(iii) not require the utility to take physical
delivery of the electricity produced by the
facility;
(D) general provisions, which shall:

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(i) specify a term of no more than 30 years,
commencing on the commercial operation date of the
facility;
(ii) provide that utilities shall maintain
adequate records documenting purchases under the
sourcing agreements entered into to comply with
this subsection (d) and shall file an accounting
with the load forecast that must be filed with the
Agency by July 15 of each year, in accordance with
subsection (d) of Section 16-111.5 of the Public
Utilities Act;
(iii) provide that all costs associated with
the initial clean coal facility will be
periodically reported to the Federal Energy
Regulatory Commission and to purchasers in
accordance with applicable laws governing
cost-based wholesale power contracts;
(iv) permit the Illinois Power Agency to
assume ownership of the initial clean coal
facility, without monetary consideration and
otherwise on reasonable terms acceptable to the
Agency, if the Agency so requests no less than 3
years prior to the end of the stated contract
term;
(v) require the owner of the initial clean
coal facility to provide documentation to the

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

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associated with sequestration of carbon from the
facility must be permanently retired. The initial
clean coal facility shall not forfeit its
designation as a clean coal facility if the
facility fails to fully comply with the applicable
carbon sequestration requirements in any given
year, provided the requisite offsets are
purchased. However, the Attorney General, on
behalf of the People of the State of Illinois, may
specifically enforce the facility's sequestration
requirement and the other terms of this contract
provision. Compliance with the sequestration
requirements and offset purchase requirements
specified in paragraph (3) of this subsection (d)
shall be reviewed annually by an independent
expert retained by the owner of the initial clean
coal facility, with the advance written approval
of the Attorney General. The Commission may, in
the course of the review specified in item (vii),
reduce the allowable return on equity for the
facility if the facility willfully fails to comply
with the carbon capture and sequestration
requirements set forth in this item (v);
(vi) include limits on, and accordingly
provide for modification of, the amount the
utility is required to source under the sourcing

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agreement consistent with paragraph (2) of this
subsection (d);
(vii) require Commission review: (1) to
determine the justness, reasonableness, and
prudence of the inputs to the formula referenced
in subparagraphs (A)(i) through (A)(iii) of
paragraph (3) of this subsection (d), prior to an
adjustment in those inputs including, without
limitation, the capital structure and return on
equity, fuel costs, and other operations and
maintenance costs and (2) to approve the costs to
be passed through to customers under the sourcing
agreement by which the utility satisfies its
statutory obligations. Commission review shall
occur no less than every 3 years, regardless of
whether any adjustments have been proposed, and
shall be completed within 9 months;
(viii) limit the utility's obligation to such
amount as the utility is allowed to recover
through tariffs filed with the Commission,
provided that neither the clean coal facility nor
the utility waives any right to assert federal
pre-emption or any other argument in response to a
purported disallowance of recovery costs;
(ix) limit the utility's or alternative retail
electric supplier's obligation to incur any

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liability until such time as the facility is in
commercial operation and generating power and
energy and such power and energy is being
delivered to the facility busbar;
(x) provide that the owner or owners of the
initial clean coal facility, which is the
counterparty to such sourcing agreement, shall
have the right from time to time to elect whether
the obligations of the utility party thereto shall
be governed by the power purchase provisions or
the contract for differences provisions;
(xi) append documentation showing that the
formula rate and contract, insofar as they relate
to the power purchase provisions, have been
approved by the Federal Energy Regulatory
Commission pursuant to Section 205 of the Federal
Power Act;
(xii) provide that any changes to the terms of
the contract, insofar as such changes relate to
the power purchase provisions, are subject to
review under the public interest standard applied
by the Federal Energy Regulatory Commission
pursuant to Sections 205 and 206 of the Federal
Power Act; and
(xiii) conform with customary lender
requirements in power purchase agreements used as

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

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

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

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

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

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

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

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16% of the actual amount of electricity delivered by each
electric utility to retail customers in the State during
calendar year 2014. For an electric utility serving fewer
than 100,000 retail customers in this State that
requested, under Section 16-111.5 of the Public Utilities
Act, that the Agency procure power and energy for all or a
portion of the utility's Illinois load for the delivery
year commencing June 1, 2016, the Agency shall procure
contracts with zero emission facilities that are
reasonably capable of generating cost-effective zero
emission credits in an amount approximately equal to 16%
of the portion of power and energy to be procured by the
Agency for the utility. The duration of the contracts
procured under this subsection (d-5) shall be for a term
of 10 years ending May 31, 2027. The quantity of zero
emission credits to be procured under the contracts shall
be all of the zero emission credits generated by the zero
emission facility in each delivery year; however, if the
zero emission facility is owned by more than one entity,
then the quantity of zero emission credits to be procured
under the contracts shall be the amount of zero emission
credits that are generated from the portion of the zero
emission facility that is owned by the winning supplier.
The 16% value identified in this paragraph (1) is the
average of the percentage targets in subparagraph (B) of
paragraph (1) of subsection (c) of this Section for the 5

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delivery years beginning June 1, 2017.
The procurement process shall be subject to the
following provisions:
(A) Those zero emission facilities that intend to
participate in the procurement shall submit to the
Agency the following eligibility information for each
zero emission facility on or before the date
established by the Agency:
(i) the in-service date and remaining useful
life of the zero emission facility;
(ii) the amount of power generated annually
for each of the years 2005 through 2015, and the
projected zero emission credits to be generated
over the remaining useful life of the zero
emission facility, which shall be used to
determine the capability of each facility;
(iii) the annual zero emission facility cost
projections, expressed on a per megawatthour
basis, over the next 6 delivery years, which shall
include the following: operation and maintenance
expenses; fully allocated overhead costs, which
shall be allocated using the methodology developed
by the Institute for Nuclear Power Operations;
fuel expenditures; non-fuel capital expenditures;
spent fuel expenditures; a return on working
capital; the cost of operational and market risks

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

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

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(ii) Baseline market price index: The baseline
market price index for the consecutive 12-month
period ending May 31, 2016 is $31.40 per
megawatthour, which is based on the sum of (aa)
the average day-ahead energy price across all
hours of such 12-month period at the PJM
Interconnection LLC Northern Illinois Hub, (bb)
50% multiplied by the Base Residual Auction, or
its successor, capacity price for the rest of the
RTO zone group determined by PJM Interconnection
LLC, divided by 24 hours per day, and (cc) 50%
multiplied by the Planning Resource Auction, or
its successor, capacity price for Zone 4
determined by the Midcontinent Independent System
Operator, Inc., divided by 24 hours per day.
(iii) Market price index: The market price
index for a delivery year shall be the sum of
projected energy prices and projected capacity
prices determined as follows:
(aa) Projected energy prices: the
projected energy prices for the applicable
delivery year shall be calculated once for the
year using the forward market price for the
PJM Interconnection, LLC Northern Illinois
Hub. The forward market price shall be
calculated as follows: the energy forward

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

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Inc.
(II) For the delivery year commencing
June 1, 2020, and each year thereafter,
the projected capacity price shall be
equal to the sum of (1) 50% multiplied by
the Base Residual Auction, or its
successor, price for the ComEd zone as
determined by PJM Interconnection LLC,
divided by 24 hours per day, and (2) 50%
multiplied by the resource auction price
determined in the resource auction
administered by the Midcontinent
Independent System Operator, Inc., in
which the largest percentage of load
cleared for Local Resource Zone 4, divided
by 24 hours per day, and where such price
is determined by the Midcontinent
Independent System Operator, Inc.
For purposes of this subsection (d-5):
"Rest of the RTO" and "ComEd Zone" shall have
the meaning ascribed to them by PJM
Interconnection, LLC.
"RTO" means regional transmission
organization.
(C) No later than 45 days after June 1, 2017 (the
effective date of Public Act 99-906), the Agency shall

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publish its proposed zero emission standard
procurement plan. The plan shall be consistent with
the provisions of this paragraph (1) and shall provide
that winning bids shall be selected based on public
interest criteria that include, but are not limited
to, minimizing carbon dioxide emissions that result
from electricity consumed in Illinois and minimizing
sulfur dioxide, nitrogen oxide, and particulate matter
emissions that adversely affect the citizens of this
State. In particular, the selection of winning bids
shall take into account the incremental environmental
benefits resulting from the procurement, such as any
existing environmental benefits that are preserved by
the procurements held under Public Act 99-906 and
would cease to exist if the procurements were not
held, including the preservation of zero emission
facilities. The plan shall also describe in detail how
each public interest factor shall be considered and
weighted in the bid selection process to ensure that
the public interest criteria are applied to the
procurement and given full effect.
For purposes of developing the plan, the Agency
shall consider any reports issued by a State agency,
board, or commission under House Resolution 1146 of
the 98th General Assembly and paragraph (4) of
subsection (d) of this Section, as well as publicly

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

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

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

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of subsection (c) of this Section and,
after January 1, 2015, renewable energy
credits from photovoltaic distributed
generation projects in procurement events
held under subsection (c) of this Section.
Each utility shall enter into binding contractual
arrangements with the winning suppliers.
The procurement described in this subsection
(d-5), including, but not limited to, the execution of
all contracts procured, shall be completed no later
than May 10, 2017. Based on the effective date of
Public Act 99-906, the Agency and Commission may, as
appropriate, modify the various dates and timelines
under this subparagraph and subparagraphs (C) and (D)
of this paragraph (1). The procurement and plan
approval processes required by this subsection (d-5)
shall be conducted in conjunction with the procurement
and plan approval processes required by subsection (c)
of this Section and Section 16-111.5 of the Public
Utilities Act, to the extent practicable.
Notwithstanding whether a procurement event is
conducted under Section 16-111.5 of the Public
Utilities Act, the Agency shall immediately initiate a
procurement process on June 1, 2017 (the effective
date of Public Act 99-906).
(D) Following the procurement event described in

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this paragraph (1) and consistent with subparagraph
(B) of this paragraph (1), the Agency shall calculate
the payments to be made under each contract for the
next delivery year based on the market price index for
that delivery year. The Agency shall publish the
payment calculations no later than May 25, 2017 and
every May 25 thereafter.
(E) Notwithstanding the requirements of this
subsection (d-5), the contracts executed under this
subsection (d-5) shall provide that the zero emission
facility may, as applicable, suspend or terminate
performance under the contracts in the following
instances:
(i) A zero emission facility shall be excused
from its performance under the contract for any
cause beyond the control of the resource,
including, but not restricted to, acts of God,
flood, drought, earthquake, storm, fire,
lightning, epidemic, war, riot, civil disturbance
or disobedience, labor dispute, labor or material
shortage, sabotage, acts of public enemy,
explosions, orders, regulations or restrictions
imposed by governmental, military, or lawfully
established civilian authorities, which, in any of
the foregoing cases, by exercise of commercially
reasonable efforts the zero emission facility

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

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reasonably foreseeable at the time it executed the
contract and that a prudent owner or operator of
such resource would not undertake.
(iv) A zero emission facility shall be
permitted to terminate the contract in the event
the Nuclear Regulatory Commission terminates the
resource's license.
(F) If the zero emission facility elects to
terminate a contract under subparagraph (E) of this
paragraph (1), then the Commission shall reopen the
docket in which the Commission approved the zero
emission standard procurement plan under subparagraph
(C) of this paragraph (1) and, after notice and
hearing, enter an order acknowledging the contract
termination election if such termination is consistent
with the provisions of this subsection (d-5).
(2) For purposes of this subsection (d-5), the amount
paid per kilowatthour means the total amount paid for
electric service expressed on a per kilowatthour basis.
For purposes of this subsection (d-5), the total amount
paid for electric service includes, without limitation,
amounts paid for supply, transmission, distribution,
surcharges, and add-on taxes.
Notwithstanding the requirements of this subsection
(d-5), the contracts executed under this subsection (d-5)
shall provide that the total of zero emission credits

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

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

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

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minus the baseline market price index, as defined in
subparagraph (B) of paragraph (1) of this subsection
(d-5).
If the subtraction yields a negative number, then the
Average ZEC Payment shall be zero.
(4) Cost-effective zero emission credits procured from
zero emission facilities shall satisfy the applicable
definitions set forth in Section 1-10 of this Act.
(5) The electric utility shall retire all zero
emission credits used to comply with the requirements of
this subsection (d-5).
(6) Electric utilities shall be entitled to recover
all of the costs associated with the procurement of zero
emission credits through an automatic adjustment clause
tariff in accordance with subsection (k) and (m) of
Section 16-108 of the Public Utilities Act, and the
contracts executed under this subsection (d-5) shall
provide that the utilities' payment obligations under such
contracts shall be reduced if an adjustment is required
under subsection (m) of Section 16-108 of the Public
Utilities Act.
(7) This subsection (d-5) shall become inoperative on
January 1, 2028.
(d-10) Nuclear Plant Assistance; carbon mitigation
credits.
(1) The General Assembly finds:

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

10400SB3393ham003 - 219 - LRB104 17748 SPS 38499 a
among others.
(F) The Environmental Protection Agency commissioned
an independent audit which provided a detailed assessment
of the financial condition of the Illinois nuclear fleet
to evaluate its financial viability and whether the
environmental benefits of such resources were at risk. The
report identified the risk of losing the environmental
benefits of several specific nuclear units. The report
also identified that the LaSalle County Generating Station
will continue to operate through 2026 and therefore is not
eligible to participate in the carbon mitigation credit
program.
(G) Nuclear plants provide carbon-free energy, which
helps to avoid many health-related negative impacts for
Illinois residents.
(H) The procurement of carbon mitigation credits
representing the environmental benefits of carbon-free
generation will further the State's efforts at achieving
100% clean energy and decarbonizing the electricity sector
in a safe, reliable, and affordable manner. Further, the
procurement of carbon emission credits will enhance the
health and welfare of Illinois residents through decreased
reliance on more highly polluting generation.
(I) The General Assembly therefore finds it necessary
to establish carbon mitigation credits to ensure decreased
reliance on more carbon-intensive energy resources, for

10400SB3393ham003 - 220 - LRB104 17748 SPS 38499 a
transitioning to a fully decarbonized electricity sector,
and to help ensure health and welfare of the State's
residents.
(2) As used in this subsection:
"Baseline costs" means costs used to establish a customer
protection cap that have been evaluated through an independent
audit of a carbon-free energy resource conducted by the
Environmental Protection Agency that evaluated projected
annual costs for operation and maintenance expenses; fully
allocated overhead costs, which shall be allocated using the
methodology developed by the Institute for Nuclear Power
Operations; fuel expenditures; nonfuel capital expenditures;
spent fuel expenditures; a return on working capital; the cost
of operational and market risks that could be avoided by
ceasing operation; and any other costs necessary for continued
operations, provided that "necessary" means, for purposes of
this definition, that the costs could reasonably be avoided
only by ceasing operations of the carbon-free energy resource.
"Carbon mitigation credit" means a tradable credit that
represents the carbon emission reduction attributes of one
megawatt-hour of energy produced from a carbon-free energy
resource.
"Carbon-free energy resource" means a generation facility
that: (1) is fueled by nuclear power; and (2) is
interconnected to PJM Interconnection, LLC.
(3) Procurement.

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(A) Beginning with the delivery year commencing on
June 1, 2022, the Agency shall, for electric utilities
serving at least 3,000,000 retail customers in the State,
seek to procure contracts for no more than approximately
54,500,000 cost-effective carbon mitigation credits from
carbon-free energy resources because such credits are
necessary to support current levels of carbon-free energy
generation and ensure the State meets its carbon dioxide
emissions reduction goals. The Agency shall not make a
partial award of a contract for carbon mitigation credits
covering a fractional amount of a carbon-free energy
resource's projected output.
(B) Each carbon-free energy resource that intends to
participate in a procurement shall be required to submit
to the Agency the following information for the resource
on or before the date established by the Agency:
(i) the in-service date and remaining useful life
of the carbon-free energy resource;
(ii) the amount of power generated annually for
each of the past 10 years, which shall be used to
determine the capability of each facility;
(iii) a commitment to be reflected in any contract
entered into pursuant to this subsection (d-10) to
continue operating the carbon-free energy resource at
a capacity factor of at least 88% annually on average
for the duration of the contract or contracts executed

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under the procurement held under this subsection
(d-10), except in an instance described in
subparagraph (E) of paragraph (1) of subsection (d-5)
of this Section or made impracticable as a result of
compliance with law or regulation;
(iv) financial need and the risk of loss of the
environmental benefits of such resource, which shall
include the following information:
(I) the carbon-free energy resource's cost
projections, expressed on a per megawatt-hour
basis, over the next 5 delivery years, which shall
include the following: operation and maintenance
expenses; fully allocated overhead costs, which
shall be allocated using the methodology developed
by the Institute for Nuclear Power Operations;
fuel expenditures; nonfuel capital expenditures;
spent fuel expenditures; a return on working
capital; the cost of operational and market risks
that could be avoided by ceasing operation; and
any other costs necessary for continued
operations, provided that "necessary" means, for
purposes of this subitem (I), that the costs could
reasonably be avoided only by ceasing operations
of the carbon-free energy resource; and
(II) the carbon-free energy resource's revenue
projections, including energy, capacity, ancillary

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

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

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Interconnection, LLC, divided by 24 hours per day,
for the applicable delivery year for the first 3
delivery years, and then any subsequent delivery
years unless the PJM Interconnection, LLC applies
the Minimum Offer Price Rule to participating
carbon-free energy resources because they supply
carbon mitigation credits pursuant to this Section
at which time, upon notice by the carbon-free
energy resource to the Commission and subject to
the Commission's confirmation, the value under
this subitem shall be zero, as further described
in the carbon mitigation credit procurement plan;
and
(III) any value of monetized federal tax
credits, direct payments, or similar subsidy
provided to the carbon-free energy resource from
any unit of government that is not already
reflected in energy prices.
If the price-per-megawatt-hour calculation
performed under item (iii) of this subparagraph (C)
for a given delivery year results in a net positive
value, then the electric utility counterparty to the
contract shall multiply such net value by the
applicable contract quantity and remit the amount to
the supplier.
To protect retail customers from retail rate

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

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(III) For the delivery year beginning June 1,
2024, the baseline costs shall be an amount equal
to $33.43 per megawatt-hour.
(IV) For the delivery year beginning June 1,
2025, the baseline costs shall be an amount equal
to $33.50 per megawatt-hour.
(V) For the delivery year beginning June 1,
2026, the baseline costs shall be an amount equal
to $34.50 per megawatt-hour.
An Environmental Protection Agency consultant
forecast, included in a report issued April 14, 2021,
projects that a carbon-free energy resource has the
opportunity to earn on average approximately $30.28
per megawatt-hour, for the sale of energy and capacity
during the time period between 2022 and 2027.
Therefore, the sale of carbon mitigation credits
provides the opportunity to receive an additional
amount per megawatt-hour in addition to the projected
prices for energy and capacity.
Although actual energy and capacity prices may
vary from year-to-year, the General Assembly finds
that this customer protection cap will help ensure
that the cost of carbon mitigation credits will be
less than its value, based upon the social cost of
carbon identified in the Technical Support Document
issued in February 2021 by the U.S. Interagency

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

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

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

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

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various dates and timelines under this subparagraph and
subparagraphs (D) and (E) of this paragraph (3) to meet
the December 3, 2021 contract execution deadline.
Following the completion of such procurements, and
consistent with this paragraph (3), the Agency shall
calculate the payments to be made under each contract in a
timely fashion.
(F-1) Costs incurred by the electric utility pursuant
to a contract authorized by this subsection (d-10) shall
be deemed prudently incurred and reasonable in amount, and
the electric utility shall be entitled to full cost
recovery pursuant to a tariff or tariffs filed with the
Commission.
(G) The counterparty electric utility shall retire all
carbon mitigation credits used to comply with the
requirements of this subsection (d-10).
(H) If a carbon-free energy resource is sold to
another owner, the rights, obligations, and commitments
under this subsection (d-10) shall continue to the
subsequent owner.
(I) This subsection (d-10) shall become inoperative on
January 1, 2028.
(e) The draft procurement plans are subject to public
comment, as required by Section 16-111.5 of the Public
Utilities Act.
(f) The Agency shall submit the final procurement plan to

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the Commission. The Agency shall revise a procurement plan if
the Commission determines that it does not meet the standards
set forth in Section 16-111.5 of the Public Utilities Act.
(g) The Agency shall assess fees to each affected utility
to recover the costs incurred in preparation of the annual
procurement plan for the utility.
(h) The Agency shall assess fees to each bidder to recover
the costs incurred in connection with a competitive
procurement process.
(i) A renewable energy credit, carbon emission credit,
zero emission credit, or carbon mitigation credit can only be
used once to comply with a single portfolio or other standard
as set forth in subsection (c), subsection (d), or subsection
(d-5) of this Section, respectively. A renewable energy
credit, carbon emission credit, zero emission credit, or
carbon mitigation credit cannot be used to satisfy the
requirements of more than one standard. If more than one type
of credit is issued for the same megawatt hour of energy, only
one credit can be used to satisfy the requirements of a single
standard. After such use, the credit must be retired together
with any other credits issued for the same megawatt hour of
energy.
(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
103-580, eff. 12-8-23; 103-1066, eff. 2-20-25.)
(Text of Section after amendment by P.A. 104-458)

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Sec. 1-75. Planning and Procurement Bureau. The Planning
and Procurement Bureau has the following duties and
responsibilities:
(a) The Planning and Procurement Bureau shall each year,
beginning in 2008, develop procurement plans and conduct
competitive procurement processes in accordance with the
requirements of Section 16-111.5 of the Public Utilities Act
for the eligible retail customers of electric utilities that
on December 31, 2005 provided electric service to at least
100,000 customers in Illinois. Beginning with the delivery
year commencing on June 1, 2017, the Planning and Procurement
Bureau shall develop plans and processes for the procurement
of zero emission credits from zero emission facilities in
accordance with the requirements of subsection (d-5) of this
Section. Beginning on the effective date of this amendatory
Act of the 102nd General Assembly, the Planning and
Procurement Bureau shall develop plans and processes for the
procurement of carbon mitigation credits from carbon-free
energy resources in accordance with the requirements of
subsection (d-10) of this Section. The Planning and
Procurement Bureau shall also develop procurement plans and
conduct competitive procurement processes in accordance with
the requirements of Section 16-111.5 of the Public Utilities
Act for the eligible retail customers of small
multi-jurisdictional electric utilities that (i) on December
31, 2005 served less than 100,000 customers in Illinois and

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(ii) request a procurement plan for their Illinois
jurisdictional load. This Section shall not apply to a small
multi-jurisdictional utility until such time as a small
multi-jurisdictional utility requests the Agency to prepare a
procurement plan for their Illinois jurisdictional load. For
the purposes of this Section, the term "eligible retail
customers" has the same definition as found in Section
16-111.5(a) of the Public Utilities Act.
Beginning with the plan or plans to be implemented in the
2017 delivery year, the Agency shall no longer include the
procurement of renewable energy resources in the annual
procurement plans required by this subsection (a), except as
provided in subsection (q) of Section 16-111.5 of the Public
Utilities Act, and shall instead develop a long-term renewable
resources procurement plan in accordance with subsection (c)
of this Section and Section 16-111.5 of the Public Utilities
Act.
In accordance with subsection (c-5) of this Section, the
Planning and Procurement Bureau shall oversee the procurement
by electric utilities that served more than 300,000 retail
customers in this State as of January 1, 2019 of renewable
energy credits from new utility-scale solar projects to be
installed, along with energy storage facilities, at or
adjacent to the sites of electric generating facilities that,
as of January 1, 2016, burned coal as their primary fuel
source.

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(1) The Agency shall each year, beginning in 2008, as
needed, issue a request for qualifications for experts or
expert consulting firms to develop the procurement plans
in accordance with Section 16-111.5 of the Public
Utilities Act. In order to qualify an expert or expert
consulting firm must have:
(A) direct previous experience assembling
large-scale power supply plans or portfolios for
end-use customers;
(B) an advanced degree in economics, mathematics,
engineering, risk management, or a related area of
study;
(C) 10 years of experience in the electricity
sector, including managing supply risk;
(D) expertise in wholesale electricity market
rules, including those established by the Federal
Energy Regulatory Commission and regional transmission
organizations;
(E) expertise in credit protocols and familiarity
with contract protocols;
(F) adequate resources to perform and fulfill the
required functions and responsibilities; and
(G) the absence of a conflict of interest and
inappropriate bias for or against potential bidders or
the affected electric utilities.
(2) The Agency shall each year, as needed, issue a

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

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

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

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electric utilities that (i) on December 31, 2005 served less
than 100,000 customers in Illinois and (ii) request a
procurement plan for their Illinois jurisdictional load.
(c) Renewable portfolio standard.
(1)(A) The Agency shall develop a long-term renewable
resources procurement plan that shall include procurement
programs and competitive procurement events necessary to
meet the goals set forth in this subsection (c). The
initial long-term renewable resources procurement plan
shall be released for comment no later than 160 days after
June 1, 2017 (the effective date of Public Act 99-906).
The Agency shall review, and may revise on an expedited
basis, the long-term renewable resources procurement plan
at least every 2 years, which shall be conducted in
conjunction with the procurement plan under Section
16-111.5 of the Public Utilities Act to the extent
practicable to minimize administrative expense. No later
than 120 days after the effective date of this amendatory
Act of the 103rd General Assembly, the Agency shall
release for comment a revision to the long-term renewable
resources procurement plan, updating elements of the most
recently approved plan as needed to comply with this
amendatory Act of the 103rd General Assembly, and any
long-term renewable resources procurement plan update
published by the Agency but not yet approved by the
Illinois Commerce Commission shall be withdrawn. The

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long-term renewable resources procurement plans shall be
subject to review and approval by the Commission under
Section 16-111.5 of the Public Utilities Act.
(B) Subject to subparagraph (F) of this paragraph (1),
the long-term renewable resources procurement plan shall
attempt to meet the goals for procurement of renewable
energy credits at levels of at least the following overall
percentages: 13% by the 2017 delivery year; increasing by
at least 1.5% each delivery year thereafter to at least
25% by the 2025 delivery year; increasing by at least 3%
each delivery year thereafter to at least 40% by the 2030
delivery year, and continuing at no less than 40% for each
delivery year thereafter. The Agency shall attempt to
procure 50% by delivery year 2040. The Agency shall
determine the annual increase between delivery year 2030
and delivery year 2040, if any, taking into account energy
demand, other energy resources, and other public policy
goals. In the event of a conflict between these goals and
the new wind, new photovoltaic, new geothermal heating and
cooling, and hydropower procurement requirements described
in items (i) through (iii) of subparagraph (C) of this
paragraph (1), the long-term plan shall prioritize
compliance with the new wind, new photovoltaic, new
geothermal heating and cooling, and hydropower procurement
requirements described in items (i) through (iii) of
subparagraph (C) of this paragraph (1) over the annual

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percentage targets described in this subparagraph (B). The
Agency shall not comply with the annual percentage targets
described in this subparagraph (B) by procuring renewable
energy credits that are unlikely to lead to the
development of new renewable resources or new, modernized,
or retooled hydropower facilities.
For the delivery year beginning June 1, 2017, the
procurement plan shall attempt to include, subject to the
prioritization outlined in this subparagraph (B),
cost-effective renewable energy resources equal to at
least 13% of each utility's load for eligible retail
customers and 13% of the applicable portion of each
utility's load for retail customers who are not eligible
retail customers, which applicable portion shall equal 50%
of the utility's load for retail customers who are not
eligible retail customers on February 28, 2017.
For the delivery year beginning June 1, 2018, the
procurement plan shall attempt to include, subject to the
prioritization outlined in this subparagraph (B),
cost-effective renewable energy resources equal to at
least 14.5% of each utility's load for eligible retail
customers and 14.5% of the applicable portion of each
utility's load for retail customers who are not eligible
retail customers, which applicable portion shall equal 75%
of the utility's load for retail customers who are not
eligible retail customers on February 28, 2017.

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For the delivery year beginning June 1, 2019, and for
each year thereafter, the procurement plans shall attempt
to include, subject to the prioritization outlined in this
subparagraph (B), cost-effective renewable energy
resources equal to a minimum percentage of each utility's
load for all retail customers as follows: 16% by June 1,
2019; increasing by 1.5% each year thereafter to 25% by
June 1, 2025; and 25% by June 1, 2026; increasing by at
least 3% each delivery year thereafter to at least 40% by
the 2030 delivery year, and continuing at no less than 40%
for each delivery year thereafter. The Agency shall
attempt to procure 50% by delivery year 2040. The Agency
shall determine the annual increase between delivery year
2030 and delivery year 2040, if any, taking into account
energy demand, other energy resources, and other public
policy goals.
For each delivery year, the Agency shall first
recognize each utility's obligations for that delivery
year under existing contracts. Any renewable energy
credits under existing contracts, including renewable
energy credits as part of renewable energy resources,
shall be used to meet the goals set forth in this
subsection (c) for the delivery year.
(C) The long-term renewable resources procurement plan
described in subparagraph (A) of this paragraph (1) shall
include the procurement of renewable energy credits from

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new projects pursuant to the following terms:
(i) At least 10,000,000 renewable energy credits
delivered annually by the end of the 2021 delivery
year, and increasing ratably to reach 45,000,000
renewable energy credits delivered annually from new
wind and solar projects, from repowered wind projects,
or from retooled hydropower facilities by the end of
delivery year 2030 such that the goals in subparagraph
(B) of this paragraph (1) are met entirely by
procurements of renewable energy credits from new wind
and photovoltaic projects. Of that amount, to the
extent possible, the Agency shall endeavor to procure
45% from new and repowered wind and hydropower
projects and shall procure at least 55% from
photovoltaic projects. Of the amount to be procured
from photovoltaic projects, the Agency shall procure:
at least 50% from solar photovoltaic projects using
the program outlined in subparagraph (K) of this
paragraph (1) from distributed renewable energy
generation devices or community renewable generation
projects; at least 47% from utility-scale solar
projects; at least 3% from brownfield site
photovoltaic projects that are not community renewable
generation projects. The Agency may propose
adjustments to these percentages, including
establishing percentage-based goals for the

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procurement of renewable energy credits from
modernized or retooled hydropower facilities and
repowered wind projects, through its long-term
renewable resources plan described in subparagraph (A)
of this paragraph (1) as necessary based on developer
interest, market conditions, budget considerations,
resource adequacy needs, or other factors.
Notwithstanding the percentage-based goals as
described in this Section, the Agency shall develop a
Geothermal Homes and Businesses Program for the
procurement of renewable energy credits from
geothermal heating and cooling systems.
In developing the long-term renewable resources
procurement plan, the Agency shall consider other
approaches, in addition to competitive procurements,
that can be used to procure renewable energy credits
from brownfield site photovoltaic projects and thereby
help return blighted or contaminated land to
productive use while enhancing public health and the
well-being of Illinois residents, including those in
environmental justice communities, as defined using
existing methodologies and findings used by the Agency
and its Administrator in its Illinois Solar for All
Program. The Agency shall also consider other
approaches, in addition to competitive procurements,
to procure renewable energy credits from new and

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existing hydropower facilities to support the
development and maintenance of these facilities. The
Agency shall explore options to convert existing dams
but shall not consider approaches to develop new dams
where they do not already exist. To encourage the
continued operation of utility-scale wind projects,
the Agency shall consider and may propose other
approaches in addition to competitive procurements to
procure renewable energy credits from repowered wind
projects.
(ii) In any given delivery year, if forecasted
expenses are less than the maximum budget available
under subparagraph (E) of this paragraph (1), the
Agency shall continue to procure new renewable energy
credits until that budget is exhausted in the manner
outlined in item (i) of this subparagraph (C).
(iii) For purposes of this Section:
"New wind projects" means wind renewable energy
facilities that are energized after June 1, 2017 for
the delivery year commencing June 1, 2017.
"New photovoltaic projects" means photovoltaic
renewable energy facilities that are energized after
June 1, 2017. Photovoltaic projects developed under
Section 1-56 of this Act shall not apply towards the
new photovoltaic project requirements in this
subparagraph (C).

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"Repowered wind projects" means utility-scale wind
projects featuring the removal, replacement, or
expansion of turbines at an existing project site, as
defined in the long-term renewable resources
procurement plan, after the effective date of this
amendatory Act of the 103rd General Assembly.
Renewable energy credit contract awards used to
support repowered wind projects shall only cover the
incremental increase in facility electricity
production resultant from repowering.
"Geothermal heating and cooling system" means a
system located in this State that meets all of the
following requirements:
(I) the system exchanges thermal energy from
groundwater or a shallow ground source to generate
thermal energy through an electric geothermal heat
pump or a system of electric geothermal heat pumps
interconnected with any geothermal extraction
facility that is (1) a closed loop or a series of
closed loop systems in which fluid is permanently
confined within a pipe or tubing and does not come
in contact with the outside environment or (2) an
open loop system in which ground or surface water
is circulated in an environmentally safe manner
directly into the facility and returned to the
same aquifer or surface water source;

10400SB3393ham003 - 248 - LRB104 17748 SPS 38499 a
(II) the system meets or exceeds federal
Energy Star product specification standards for
Geothermal Heat Pumps established on January 1,
2012, as clarified by the Environmental Protection
Agency guidance document released on February 28,
2012 entitled "Clarification to the Geothermal
Heat Pump Verification Testing Requirements and
Basic Model Group Definition", or any successor
standards that meet or exceed these standards;
(III) the system replaces or displaces less
efficient space or water heating systems,
regardless of fuel type;
(IV) the system replaces or displaces less
efficient space cooling systems, when applicable;
(V) the system does not feed electricity back
to the grid, as defined at the level of the
geothermal heat pump; and
(VI) the system became operational on or after
the effective date of this amendatory Act of the
104th General Assembly.
For purposes of calculating whether the Agency has
procured enough new wind and solar renewable energy
credits required by this subparagraph (C), renewable
energy facilities that have a multi-year renewable
energy credit delivery contract with the utility
through at least delivery year 2030 shall be

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considered new, however no renewable energy credits
from contracts entered into before June 1, 2021 shall
be used to calculate whether the Agency has procured
the correct proportion of new wind and new solar
contracts described in this subparagraph (C) for
delivery year 2021 and thereafter.
(iv) The Agency may implement additional measures,
including eligibility requirements, to ensure that new
wind projects and new photovoltaic projects supported
through renewable energy credit contract awards are a
result of a contract award and are otherwise developed
pursuant to the financial certainty provided through a
contract award.
(D) Renewable energy credits shall be cost effective.
For purposes of this subsection (c), "cost effective"
means that the costs of procuring renewable energy
resources do not cause the limit stated in subparagraph
(E) of this paragraph (1) to be exceeded and, for
renewable energy credits procured through a competitive
procurement event, do not exceed benchmarks based on
market prices for like products in the region. For
purposes of this subsection (c), "like products" means
contracts for renewable energy credits from the same or
substantially similar technology, same or substantially
similar vintage (new or existing), the same or
substantially similar quantity, and the same or

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substantially similar contract length and structure.
Benchmarks shall reflect development, financing, or
related costs resulting from requirements imposed through
other provisions of State law, including, but not limited
to, requirements in subparagraphs (P) and (Q) of this
paragraph (1) and the Renewable Energy Facilities
Agricultural Impact Mitigation Act. Confidential
benchmarks shall be developed by the procurement
administrator, in consultation with the Commission staff,
Agency staff, and the procurement monitor and shall be
subject to Commission review and approval. If price
benchmarks for like products in the region are not
available, the procurement administrator shall establish
price benchmarks based on publicly available data on
regional technology costs and expected current and future
regional energy prices. The benchmarks in this Section
shall not be used to curtail or otherwise reduce
contractual obligations entered into by or through the
Agency prior to June 1, 2017 (the effective date of Public
Act 99-906).
(E) For purposes of this subsection (c), the required
procurement of cost-effective renewable energy resources
for a particular year commencing prior to June 1, 2017
shall be measured as a percentage of the actual amount of
electricity (megawatt-hours) supplied by the electric
utility to eligible retail customers in the delivery year

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ending immediately prior to the procurement, and, for
delivery years commencing on and after June 1, 2017, the
required procurement of cost-effective renewable energy
resources for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) delivered by the electric utility in the
delivery year ending immediately prior to the procurement,
to all retail customers in its service territory. For
purposes of this subsection (c), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For
purposes of this subsection (c), the total amount paid for
electric service includes without limitation amounts paid
for supply, transmission, capacity, distribution,
surcharges, and add-on taxes.
Notwithstanding the requirements of this subsection
(c), and except as provided in subparagraph (E-5) of
paragraph (1) of this subsection (c) or except as
otherwise authorized by the Commission in its approval of
the integrated resource plan under Section 16-202 of the
Public Utilities Act, the total of renewable energy
resources procured under the procurement plan for any
single year shall be subject to the limitations of this
subparagraph (E). Such procurement shall be reduced for
all retail customers based on the amount necessary to
limit the annual estimated average net increase due to the

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costs of these resources included in the amounts paid by
eligible retail customers in connection with electric
service to no more than 4.25% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2009, adjusted annually for inflation starting with
the first adjustment in the delivery year commencing June
1, 2026. For the purposes of this Section, the inflation
adjustment shall not be accrued or applied retroactively
prior to the effective date of this amendatory Act of the
104th General Assembly and shall apply prospectively
starting in 2025. The limitation shall be increased by an
additional 1.65 percentage points of the amount paid per
kilowatthour by eligible retail customers during the year
ending May 31, 2009 starting with the delivery year
commencing June 1, 2027. To arrive at a maximum dollar
amount of renewable energy resources to be procured for
the particular delivery year, the resulting per
kilowatthour amount shall be applied to the actual amount
of kilowatthours of electricity delivered, or applicable
portion of such amount as specified in paragraph (1) of
this subsection (c), as applicable, by the electric
utility in the delivery year immediately prior to the
procurement to all retail customers in its service
territory. The calculations required by this subparagraph
(E) shall be made only once for each delivery year at the
time that the renewable energy resources are procured.

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Once the determination as to the amount of renewable
energy resources to procure is made based on the
calculations set forth in this subparagraph (E) and the
contracts procuring those amounts are executed between the
seller and applicable electric utility, no subsequent rate
impact determinations shall be made and no adjustments to
those contract amounts shall be allowed. As provided in
subparagraph (E-5) of paragraph (1) of this subsection
(c), the seller shall be entitled to full, prompt, and
uninterrupted payment under the applicable contract
notwithstanding the application of this subparagraph (E),
and all costs incurred under such contracts shall be fully
recoverable by the electric utility as provided in this
Section.
(E-5) If, for a particular delivery year, the
limitation on the amount of renewable energy resources to
be procured, as calculated pursuant to subparagraph (E) of
paragraph (1) of this subsection (c), would result in an
insufficient collection of funds to fully pay amounts due
to a seller under existing contracts executed under this
Section or executed under Section 1-56 of this Act, then
the following provisions shall apply to ensure full and
uninterrupted payment is made to such seller or sellers:
(i) If the electric utility has retained unspent
funds in an interest-bearing account as prescribed in
subsection (k) of Section 16-108 of the Public

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Utilities Act, then the utility shall use those funds
to remit full payment to the sellers to ensure prompt
and uninterrupted payment of existing contractual
obligation.
(ii) If the funds described in item (i) of this
subparagraph (E-5) are insufficient to satisfy all
existing contractual obligations, then the electric
utility shall, nonetheless, remit full payment to the
sellers to ensure prompt and uninterrupted payment of
existing contractual obligations, provided that the
full costs shall be recoverable by the utility in
accordance with part (ee) of item (iv) of this
subsection (E-5).
(iii) The Agency shall promptly notify the
Commission that existing contractual obligations are
reasonably expected to exceed the maximum collection
authorized under subparagraph (E) of paragraph (1) of
this subsection (c) for the applicable delivery year.
The Agency shall also explain and confirm how the
operation of items (i) and (ii) of this subparagraph
(E-5) ensures that the electric utility will continue
to make prompt and uninterrupted payment under
existing contractual obligations. The Agency shall
provide this information to the Commission through a
notice filed in the Commission docket approving the
Agency's operative Long-Term Renewable Resources

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Procurement Plan that includes the applicable delivery
year.
(iv) The Agency shall suspend or reduce new
contract awards for the procurement of renewable
energy credits until an Agency determination is made
under subparagraph (E) that additional procurements
would not cause the rate impact limitation of
subparagraph (E) to be exceeded. At least once
annually after the notice provided for in item (iii)
of this subparagraph (E-5) is made, the Agency shall
analyze existing contract obligations, projected
prices for indexed renewable energy credit contracts
executed under item (v) of subparagraph (G) of
paragraph (1) of subsection (c) of Section 1-75 of
this Act, and expected collections authorized under
subparagraph (E) to determine whether and to what
extent the limitations of subparagraph (E) would be
exceeded by additional renewable energy credit
procurement contract awards.
(aa) If the Agency determines that additional
renewable energy credit procurement contract
awards could be made without exceeding the
limitations of subparagraph (E), then the
procurements shall be authorized at a scale
determined not to exceed the limitations of
subparagraph (E) in a manner consistent with the

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priorities of this Section.
(bb) If the Agency determines that additional
renewable energy credit procurement contract
awards cannot be made without exceeding the
limitations of subparagraph (E), then the Agency
shall suspend any new contract awards for the
procurement of renewable energy credits until a
new rate impact determination is made under
subparagraph (E).
(cc) Agency determinations made under this
item (iv) shall be detailed and comprehensive and,
if not made through the Agency's Long-Term
Renewable Resources Procurement Plan, shall be
filed as a compliance filing in the most recent
docketed proceeding approving the Agency's
Long-Term Renewable Resources Procurement Plan.
(dd) With respect to the procurement of
renewable energy credits authorized through
programs administered under subsection (b) of
Section 1-56 and subparagraphs (K) through (M) of
paragraph (1) of subsection (k) of Section 1-75 of
this Act, the award of contracts for the
procurement of renewable energy credits shall be
suspended or reduced only at the conclusion of the
program year in which the notice provided for
under item (iii) of this subparagraph (E-5) is

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made.
(ee) The contract shall provide that, so long
as at least one of: (i) the cost recovery
mechanisms referenced in subsection (k) of Section
16-108 and subsection (l) of Section 16-111.5 of
the Public Utilities Act remains in full force
without limitation or (ii) the utility is
otherwise authorized and or entitled to full,
prompt, and uninterrupted recovery of its costs
through any other mechanism, then such seller
shall be entitled to full, prompt, and
uninterrupted payment under the applicable
contract notwithstanding the application of this
subparagraph (E).
(F) If the limitation on the amount of renewable
energy resources procured in subparagraph (E) of this
paragraph (1) prevents the Agency from meeting all of the
goals in this subsection (c), the Agency's long-term plan
shall prioritize compliance with the requirements of this
subsection (c) regarding renewable energy credits in the
following order:
(i) renewable energy credits under existing
contractual obligations as of June 1, 2021;
(i-5) funding for the Illinois Solar for All
Program, as described in subparagraph (O) of this
paragraph (1);

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(ii) renewable energy credits necessary to comply
with the new wind and new photovoltaic procurement
requirements described in items (i) through (iii) of
subparagraph (C) of this paragraph (1); and
(iii) renewable energy credits necessary to meet
the remaining requirements of this subsection (c).
(G) The following provisions shall apply to the
Agency's procurement of renewable energy credits under
this subsection (c):
(i) Notwithstanding whether a long-term renewable
resources procurement plan has been approved, the
Agency shall conduct an initial forward procurement
for renewable energy credits from new utility-scale
wind projects within 160 days after June 1, 2017 (the
effective date of Public Act 99-906). For the purposes
of this initial forward procurement, the Agency shall
solicit 15-year contracts for delivery of 1,000,000
renewable energy credits delivered annually from new
utility-scale wind projects to begin delivery on June
1, 2019, if available, but not later than June 1, 2021,
unless the project has delays in the establishment of
an operating interconnection with the applicable
transmission or distribution system as a result of the
actions or inactions of the transmission or
distribution provider, or other causes for force
majeure as outlined in the procurement contract, in

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

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structure this initial procurement in one or more
discrete procurement events. Payments to suppliers of
renewable energy credits shall commence upon delivery.
Renewable energy credits procured under this initial
procurement shall be included in the Agency's
long-term plan and shall apply to all renewable energy
goals in this subsection (c).
(iii) Notwithstanding whether the Commission has
approved the periodic long-term renewable resources
procurement plan revision described in Section
16-111.5 of the Public Utilities Act, the Agency shall
conduct at least one subsequent forward procurement
for renewable energy credits from new utility-scale
wind projects, new utility-scale solar projects, and
new brownfield site photovoltaic projects within 240
days after the effective date of this amendatory Act
of the 102nd General Assembly in quantities necessary
to meet the requirements of subparagraph (C) of this
paragraph (1) through the delivery year beginning June
1, 2021.
(iv) Notwithstanding whether the Commission has
approved the periodic long-term renewable resources
procurement plan revision described in Section
16-111.5 of the Public Utilities Act, the Agency shall
open capacity for each category in the Adjustable
Block program within 90 days after the effective date

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of this amendatory Act of the 102nd General Assembly
manner:
(1) The Agency shall open the first block of
annual capacity for the category described in item
(i) of subparagraph (K) of this paragraph (1). The
first block of annual capacity for item (i) shall
be for at least 75 megawatts of total nameplate
capacity. The price of the renewable energy credit
for this block of capacity shall be 4% less than
the price of the last open block in this category.
Projects on a waitlist shall be awarded contracts
first in the order in which they appear on the
waitlist. Notwithstanding anything to the
contrary, for those renewable energy credits that
qualify and are procured under this subitem (1) of
this item (iv), the renewable energy credit
delivery contract value shall be paid in full,
based on the estimated generation during the first
15 years of operation, by the contracting
utilities at the time that the facility producing
the renewable energy credits is interconnected at
the distribution system level of the utility and
verified as energized and in compliance by the
Program Administrator. The electric utility shall
receive and retire all renewable energy credits
generated by the project for the first 15 years of

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operation. Renewable energy credits generated by
the project thereafter shall not be transferred
under the renewable energy credit delivery
contract with the counterparty electric utility.
(2) The Agency shall open the first block of
annual capacity for the category described in item
(ii) of subparagraph (K) of this paragraph (1).
The first block of annual capacity for item (ii)
shall be for at least 75 megawatts of total
nameplate capacity.
(A) The price of the renewable energy
credit for any project on a waitlist for this
category before the opening of this block
shall be 4% less than the price of the last
open block in this category. Projects on the
waitlist shall be awarded contracts first in
the order in which they appear on the
waitlist. Any projects that are less than or
equal to 25 kilowatts in size on the waitlist
for this capacity shall be moved to the
waitlist for paragraph (1) of this item (iv).
Notwithstanding anything to the contrary,
projects that were on the waitlist prior to
opening of this block shall not be required to
be in compliance with the requirements of
subparagraph (Q) of this paragraph (1) of this

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subsection (c). Notwithstanding anything to
the contrary, for those renewable energy
credits procured from projects that were on
the waitlist for this category before the
opening of this block 20% of the renewable
energy credit delivery contract value, based
on the estimated generation during the first
15 years of operation, shall be paid by the
contracting utilities at the time that the
facility producing the renewable energy
credits is interconnected at the distribution
system level of the utility and verified as
energized by the Program Administrator. The
remaining portion shall be paid ratably over
the subsequent 4-year period. The electric
utility shall receive and retire all renewable
energy credits generated by the project during
the first 15 years of operation. Renewable
energy credits generated by the project
thereafter shall not be transferred under the
renewable energy credit delivery contract with
the counterparty electric utility.
(B) The price of renewable energy credits
for any project not on the waitlist for this
category before the opening of the block shall
be determined and published by the Agency.

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Projects not on a waitlist as of the opening
of this block shall be subject to the
requirements of subparagraph (Q) of this
paragraph (1), as applicable. Projects not on
a waitlist as of the opening of this block
shall be subject to the contract provisions
outlined in item (iii) of subparagraph (L) of
this paragraph (1). The Agency shall strive to
publish updated prices and an updated
renewable energy credit delivery contract as
quickly as possible.
(3) For opening the first 2 blocks of annual
capacity for projects participating in item (iii)
of subparagraph (K) of paragraph (1) of subsection
(c), projects shall be selected exclusively from
those projects on the ordinal waitlists of
community renewable generation projects
established by the Agency based on the status of
those ordinal waitlists as of December 31, 2020,
and only those projects previously determined to
be eligible for the Agency's April 2019 community
solar project selection process.
The first 2 blocks of annual capacity for item
(iii) shall be for 250 megawatts of total
nameplate capacity, with both blocks opening
simultaneously under the schedule outlined in the

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paragraphs below. Projects shall be selected as
follows:
(A) The geographic balance of selected
projects shall follow the Group classification
found in the Agency's Revised Long-Term
Renewable Resources Procurement Plan, with 70%
of capacity allocated to projects on the Group
B waitlist and 30% of capacity allocated to
projects on the Group A waitlist.
(B) Contract awards for waitlisted
projects shall be allocated proportionate to
the total nameplate capacity amount across
both ordinal waitlists associated with that
applicant firm or its affiliates, subject to
the following conditions.
(i) Each applicant firm having a
waitlisted project eligible for selection
shall receive no less than 500 kilowatts
in awarded capacity across all groups, and
no approved vendor may receive more than
20% of each Group's waitlist allocation.
(ii) Each applicant firm, upon
receiving an award of program capacity
proportionate to its waitlisted capacity,
may then determine which waitlisted
projects it chooses to be selected for a

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contract award up to that capacity amount.
(iii) Assuming all other program
requirements are met, applicant firms may
adjust the nameplate capacity of applicant
projects without losing waitlist
eligibility, so long as no project is
greater than 2,000 kilowatts in size.
(iv) Assuming all other program
requirements are met, applicant firms may
adjust the expected production associated
with applicant projects, subject to
verification by the Program Administrator.
(C) After a review of affiliate
information and the current ordinal waitlists,
the Agency shall announce the nameplate
capacity award amounts associated with
applicant firms no later than 90 days after
the effective date of this amendatory Act of
the 102nd General Assembly.
(D) Applicant firms shall submit their
portfolio of projects used to satisfy those
contract awards no less than 90 days after the
Agency's announcement. The total nameplate
capacity of all projects used to satisfy that
portfolio shall be no greater than the
Agency's nameplate capacity award amount

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associated with that applicant firm. An
applicant firm may decline, in whole or in
part, its nameplate capacity award without
penalty, with such unmet capacity rolled over
to the next block opening for project
selection under item (iii) of subparagraph (K)
of this subsection (c). Any projects not
included in an applicant firm's portfolio may
reapply without prejudice upon the next block
reopening for project selection under item
(iii) of subparagraph (K) of this subsection
(c).
(E) The renewable energy credit delivery
contract shall be subject to the contract and
payment terms outlined in item (iv) of
subparagraph (L) of this subsection (c).
Contract instruments used for this
subparagraph shall contain the following
terms:
(i) Renewable energy credit prices
shall be fixed, without further adjustment
under any other provision of this Act or
for any other reason, at 10% lower than
prices applicable to the last open block
for this category, inclusive of any adders
available for achieving a minimum of 50%

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of subscribers to the project's nameplate
capacity being residential or small
commercial customers with subscriptions of
below 25 kilowatts in size;
(ii) A requirement that a minimum of
50% of subscribers to the project's
nameplate capacity be residential or small
commercial customers with subscriptions of
below 25 kilowatts in size;
(iii) Permission for the ability of a
contract holder to substitute projects
with other waitlisted projects without
penalty should a project receive a
non-binding estimate of costs to construct
the interconnection facilities and any
required distribution upgrades associated
with that project of greater than 30 cents
per watt AC of that project's nameplate
capacity. In developing the applicable
contract instrument, the Agency may
consider whether other circumstances
outside of the control of the applicant
firm should also warrant project
substitution rights.
The Agency shall publish a finalized
updated renewable energy credit delivery

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contract developed consistent with these terms
and conditions no less than 30 days before
applicant firms must submit their portfolio of
projects pursuant to item (D).
(F) To be eligible for an award, the
applicant firm shall certify that not less
than prevailing wage, as determined pursuant
to the Illinois Prevailing Wage Act, was or
will be paid to employees who are engaged in
construction activities associated with a
selected project.
(4) The Agency shall open the first block of
annual capacity for the category described in item
(iv) of subparagraph (K) of this paragraph (1).
The first block of annual capacity for item (iv)
shall be for at least 50 megawatts of total
nameplate capacity. Renewable energy credit prices
shall be fixed, without further adjustment under
any other provision of this Act or for any other
reason, at the price in the last open block in the
category described in item (ii) of subparagraph
(K) of this paragraph (1). Pricing for future
blocks of annual capacity for this category may be
adjusted in the Agency's second revision to its
Long-Term Renewable Resources Procurement Plan.
Projects in this category shall be subject to the

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contract terms outlined in item (iv) of
subparagraph (L) of this paragraph (1).
(5) The Agency shall open the equivalent of 2
years of annual capacity for the category
described in item (v) of subparagraph (K) of this
paragraph (1). The first block of annual capacity
for item (v) shall be for at least 10 megawatts of
total nameplate capacity. Notwithstanding the
provisions of item (v) of subparagraph (K) of this
paragraph (1), for the purpose of this initial
block, the agency shall accept new project
applications intended to increase the diversity of
areas hosting community solar projects, the
business models of projects, and the size of
projects, as described by the Agency in its
long-term renewable resources procurement plan
that is approved as of the effective date of this
amendatory Act of the 102nd General Assembly.
Projects in this category shall be subject to the
contract terms outlined in item (iii) of
subsection (L) of this paragraph (1).
(6) The Agency shall open the first blocks of
annual capacity for the category described in item
(vi) of subparagraph (K) of this paragraph (1),
with allocations of capacity within the block
generally matching the historical share of block

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capacity allocated between the category described
in items (i) and (ii) of subparagraph (K) of this
paragraph (1). The first two blocks of annual
capacity for item (vi) shall be for at least 75
megawatts of total nameplate capacity. The price
of renewable energy credits for the blocks of
capacity shall be 4% less than the price of the
last open blocks in the categories described in
items (i) and (ii) of subparagraph (K) of this
paragraph (1). Pricing for future blocks of annual
capacity for this category may be adjusted in the
Agency's second revision to its Long-Term
Renewable Resources Procurement Plan. Projects in
this category shall be subject to the applicable
contract terms outlined in items (ii) and (iii) of
subparagraph (L) of this paragraph (1).
(v) Upon the effective date of this amendatory Act
of the 102nd General Assembly, for all competitive
procurements and any procurements of renewable energy
credit from new utility-scale wind and new
utility-scale photovoltaic projects, the Agency shall
procure indexed renewable energy credits and direct
respondents to offer a strike price.
(1) The purchase price of the indexed
renewable energy credit payment shall be
calculated for each settlement period. That

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payment, for any settlement period, shall be equal
to the difference resulting from subtracting the
strike price from the index price for that
settlement period. If this difference results in a
negative number, the indexed REC counterparty
shall owe the seller the absolute value multiplied
by the quantity of energy produced in the relevant
settlement period. If this difference results in a
positive number, the seller shall owe the indexed
REC counterparty this amount multiplied by the
quantity of energy produced in the relevant
settlement period.
(2) Parties shall cash settle every month,
summing up all settlements (both positive and
negative, if applicable) for the prior month.
(3) To ensure funding in the annual budget
established under subparagraph (E) for indexed
renewable energy credit procurements for each year
of the term of such contracts, which must have a
minimum tenure of 20 calendar years, the
procurement administrator, Agency, Commission
staff, and procurement monitor shall quantify the
annual cost of the contract by utilizing one or
more industry-standard, third-party forward price
curves for energy at the appropriate hub or load
zone, including the estimated magnitude and timing

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of the price effects related to federal carbon
controls. Each forward price curve shall contain a
specific value of the forecasted market price of
electricity for each annual delivery year of the
contract. For procurement planning purposes, the
impact on the annual budget for the cost of
indexed renewable energy credits for each delivery
year shall be determined as the expected annual
contract expenditure for that year, equaling the
difference between (i) the sum across all relevant
contracts of the applicable strike price
multiplied by contract quantity and (ii) the sum
across all relevant contracts of the forward price
curve for the applicable load zone for that year
multiplied by contract quantity. The contracting
utility shall not assume an obligation in excess
of the estimated annual cost of the contracts for
indexed renewable energy credits. Forward curves
shall be revised on an annual basis as updated
forward price curves are released and filed with
the Commission in the proceeding approving the
Agency's most recent long-term renewable resources
procurement plan. If the expected contract spend
is higher or lower than the total quantity of
contracts multiplied by the forward price curve
value for that year, the forward price curve shall

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be updated by the procurement administrator, in
consultation with the Agency, Commission staff,
and procurement monitors, using then-currently
available price forecast data and additional
budget dollars shall be obligated or reobligated
as appropriate.
(4) To ensure that indexed renewable energy
credit prices remain predictable and affordable,
the Agency may consider the institution of a price
collar on REC prices paid under indexed renewable
energy credit procurements establishing floor and
ceiling REC prices applicable to indexed REC
contract prices. Any price collars applicable to
indexed REC procurements shall be proposed by the
Agency through its long-term renewable resources
procurement plan.
(vi) All procurements under this subparagraph (G),
including the procurement of renewable energy credits
from hydropower facilities, shall comply with the
geographic requirements in subparagraph (I) of this
paragraph (1) and shall follow the procurement
processes and procedures described in this Section and
Section 16-111.5 of the Public Utilities Act to the
extent practicable, and these processes and procedures
may be expedited to accommodate the schedule
established by this subparagraph (G). To ensure the

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successful development of new renewable energy
projects supported through competitive procurements,
for any procurements conducted under items (i), (ii),
(iii), and (v) of this subparagraph (G) and any other
procurement of new utility-scale wind or utility-scale
solar projects that were entered into prior to January
1, 2025, the Agency shall allow, upon a demonstration
of need to ensure the commercial viability of a
project, for a one-time, post-award renegotiation of
select contract terms prior to the project's
commercial operation date through bilateral
negotiation between the Agency, the buyer, and a
winning bidder. Contract terms subject to
renegotiation may include the project map, as defined
under the applicable competitive solicitation, the
real estate footprint or any limitations thereof, the
location of the generators, or a potential reduction
in the quantity of renewable energy credits to be
delivered. Provisions related to a renewable energy
credit delivery shortfall and the event of default may
be replaced with similar provisions approved by the
Agency in subsequent years or subsequent to a
successful bid. Post-award renegotiation of
competitively bid renewable energy credit contracts
entered into prior to January 1, 2025 shall not be
permitted to the extent such renegotiation would

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result in (1) the point of interconnection being
within the service area of a different state, a
different regional transmission organization zone, or
a different regional transmission organization, (2)
the generator no longer meeting the definition of the
resource category for which the winning bidder was
originally awarded a contract, (3) the generator no
longer meeting the Agency's public interest criteria
as established in the long-term renewable resources
plan in effect at the time of the contract award, or
(4) a change to material terms of the renewable energy
credit contract unrelated to project land or footprint
or the number of renewable energy credits to be
delivered, including the applicable bid price or
strike price. If the Agency, the buyer, and the
winning bidder reach an agreement on amended terms,
then, upon petition by the winning bidder or current
seller, the Commission shall issue an order directing
the utility counterparty to execute an amendment
drafted by the Agency with the revised terms to the
renewable energy credit contract, the product order,
or both. The Agency shall provide the amendment to the
utility within 15 business days after the Commission's
order, and the utility shall execute the amendment no
more than 7 calendar days after delivery by the
Agency.

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(vii) On and after the effective date of this
amendatory Act of the 103rd General Assembly, for all
procurements of renewable energy credits from
hydropower facilities, the Agency shall establish
contract terms designed to optimize existing
hydropower facilities through modernization or
retooling and establish new hydropower facilities at
existing dams. Procurements made under this item (vii)
shall prioritize projects located in designated
environmental justice communities, as defined in
subsection (b) of Section 1-56 of this Act, or in
projects located in units of local government with
median incomes that do not exceed 82% of the median
income of the State.
(H) The procurement of renewable energy resources for
a given delivery year shall be reduced as described in
this subparagraph (H) if an alternative retail electric
supplier meets the requirements described in this
subparagraph (H).
(i) Within 45 days after June 1, 2017 (the
effective date of Public Act 99-906), an alternative
retail electric supplier or its successor shall submit
an informational filing to the Illinois Commerce
Commission certifying that, as of December 31, 2015,
the alternative retail electric supplier owned one or
more electric generating facilities that generates

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renewable energy resources as defined in Section 1-10
of this Act, provided that such facilities are not
powered by wind or photovoltaics, and the facilities
generate one renewable energy credit for each
megawatthour of energy produced from the facility.
The informational filing shall identify each
facility that was eligible to satisfy the alternative
retail electric supplier's obligations under Section
16-115D of the Public Utilities Act as described in
this item (i).
(ii) For a given delivery year, the alternative
retail electric supplier may elect to supply its
retail customers with renewable energy credits from
the facility or facilities described in item (i) of
this subparagraph (H) that continue to be owned by the
alternative retail electric supplier.
(iii) The alternative retail electric supplier
shall notify the Agency and the applicable utility, no
later than February 28 of the year preceding the
applicable delivery year or 15 days after June 1, 2017
(the effective date of Public Act 99-906), whichever
is later, of its election under item (ii) of this
subparagraph (H) to supply renewable energy credits to
retail customers of the utility. Such election shall
identify the amount of renewable energy credits to be
supplied by the alternative retail electric supplier

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to the utility's retail customers and the source of
the renewable energy credits identified in the
informational filing as described in item (i) of this
subparagraph (H), subject to the following
limitations:
For the delivery year beginning June 1, 2018,
the maximum amount of renewable energy credits to
be supplied by an alternative retail electric
supplier under this subparagraph (H) shall be 68%
multiplied by 25% multiplied by 14.5% multiplied
by the amount of metered electricity
(megawatt-hours) delivered by the alternative
retail electric supplier to Illinois retail
customers during the delivery year ending May 31,
2016.
For delivery years beginning June 1, 2019 and
each year thereafter, the maximum amount of
renewable energy credits to be supplied by an
alternative retail electric supplier under this
subparagraph (H) shall be 68% multiplied by 50%
multiplied by 16% multiplied by the amount of
metered electricity (megawatt-hours) delivered by
the alternative retail electric supplier to
Illinois retail customers during the delivery year
ending May 31, 2016, provided that the 16% value
shall increase by 1.5% each delivery year

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

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credit quantity for the delivery year beginning June
1, 2018 is 14.5% multiplied by the total amount of
metered electricity (megawatt-hours) delivered by the
alternative retail supplier in that delivery year,
provided that the 14.5% shall increase by 1.5% each
delivery year thereafter to 25% by the delivery year
beginning June 1, 2025, and thereafter the 25% value
shall apply to each delivery year.
On or before April 1 of each year, the Agency shall
annually publish a report on its website that
identifies the aggregate amount of renewable energy
credits supplied by alternative retail electric
suppliers under this subparagraph (H).
(I) The Agency shall design its long-term renewable
energy procurement plan to maximize the State's interest
in the health, safety, and welfare of its residents,
including but not limited to minimizing sulfur dioxide,
nitrogen oxide, particulate matter and other pollution
that adversely affects public health in this State,
increasing fuel and resource diversity in this State,
enhancing the reliability and resiliency of the
electricity distribution system in this State, meeting
goals to limit carbon dioxide emissions under federal or
State law, and contributing to a cleaner and healthier
environment for the citizens of this State. In order to
further these legislative purposes, renewable energy

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credits shall be eligible to be counted toward the
renewable energy requirements of this subsection (c) if
they are generated from facilities located in this State.
The Agency may qualify renewable energy credits from
facilities located in states adjacent to Illinois or
renewable energy credits associated with the electricity
generated by a utility-scale wind energy facility or
utility-scale photovoltaic facility and transmitted by a
qualifying direct current project described in subsection
(b-5) of Section 8-406 of the Public Utilities Act to a
delivery point on the electric transmission grid located
in this State or a state adjacent to Illinois, if the
generator demonstrates and the Agency determines that the
operation of such facility or facilities will help promote
the State's interest in the health, safety, and welfare of
its residents based on the public interest criteria
described above. For the purposes of this Section,
renewable resources that are delivered via a high voltage
direct current converter station located in Illinois shall
be deemed generated in Illinois at the time and location
the energy is converted to alternating current by the high
voltage direct current converter station if the high
voltage direct current transmission line: (i) after the
effective date of this amendatory Act of the 102nd General
Assembly, was constructed with a project labor agreement;
(ii) is capable of transmitting electricity at 525kv;

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(iii) has an Illinois converter station located and
interconnected in the region of the PJM Interconnection,
LLC; (iv) does not operate as a public utility; and (v) if
the high voltage direct current transmission line was
energized after June 1, 2023. To ensure that the public
interest criteria are applied to the procurement and given
full effect, the Agency's long-term procurement plan shall
describe in detail how each public interest factor shall
be considered and weighted for facilities located in
states adjacent to Illinois.
(J) In order to promote the competitive development of
renewable energy resources in furtherance of the State's
interest in the health, safety, and welfare of its
residents, renewable energy credits shall not be eligible
to be counted toward the renewable energy requirements of
this subsection (c) if they are sourced from a generating
unit whose costs were being recovered through rates
regulated by this State or any other state or states on or
after January 1, 2017. Each contract executed to purchase
renewable energy credits under this subsection (c) shall
provide for the contract's termination if the costs of the
generating unit supplying the renewable energy credits
subsequently begin to be recovered through rates regulated
by this State or any other state or states; and each
contract shall further provide that, in that event, the
supplier of the credits must return 110% of all payments

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received under the contract. Amounts returned under the
requirements of this subparagraph (J) shall be retained by
the utility and all of these amounts shall be used for the
procurement of additional renewable energy credits from
new wind or new photovoltaic resources as defined in this
subsection (c). The long-term plan shall provide that
these renewable energy credits shall be procured in the
next procurement event.
Notwithstanding the limitations of this subparagraph
(J), renewable energy credits sourced from generating
units that are constructed, purchased, owned, or leased by
an electric utility as part of an approved project,
program, or pilot under Section 1-56 of this Act shall be
eligible to be counted toward the renewable energy
requirements of this subsection (c), regardless of how the
costs of these units are recovered. As long as a
generating unit or an identifiable portion of a generating
unit has not had and does not have its costs recovered
through rates regulated by this State or any other state,
HVDC renewable energy credits associated with that
generating unit or identifiable portion thereof shall be
eligible to be counted toward the renewable energy
requirements of this subsection (c).
(K) The long-term renewable resources procurement plan
developed by the Agency in accordance with subparagraph
(A) of this paragraph (1) shall include an Adjustable

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Block program for the procurement of renewable energy
credits from new photovoltaic projects that are
distributed renewable energy generation devices or new
photovoltaic community renewable generation projects. The
Adjustable Block program shall be generally designed to
provide for the steady, predictable, and sustainable
growth of new solar photovoltaic development in Illinois.
To this end, the Adjustable Block program shall provide a
transparent annual schedule of prices and quantities to
enable the photovoltaic market to scale up and for
renewable energy credit prices to adjust at a predictable
rate over time. The prices set by the Adjustable Block
program can be reflected as a set value or as the product
of a formula.
The Adjustable Block program shall include for each
category of eligible projects for each delivery year: a
single block of nameplate capacity, a price for renewable
energy credits within that block, and the terms and
conditions for securing a spot on a waitlist once the
block is fully committed or reserved. Except as outlined
below, the waitlist of projects in a given year will carry
over to apply to the subsequent year when another block is
opened. Only projects energized on or after June 1, 2017
shall be eligible for the Adjustable Block program. For
each category for each delivery year the Agency shall
determine the amount of generation capacity in each block,

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

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more than 25 kilowatts.
(ii) At least 20% from distributed renewable
energy generation devices with a nameplate capacity of
more than 25 kilowatts and no more than 5,000
kilowatts. The Agency may create sub-categories within
this category to account for the differences between
projects for small commercial customers, large
commercial customers, and public or non-profit
customers. A project shall not be colocated with one
or more other distributed renewable energy generation
projects if the aggregate nameplate capacity of the
projects exceeds 5,000 kilowatts AC. Notwithstanding
any other provision of this Section, if 2 or more
projects are developed, owned, or controlled by or
originate from the same developer or an affiliated
developer and the projects serve affiliated loads, the
projects shall be colocated if the projects are
located on adjacent parcels. If 2 or more projects are
developed, owned, or controlled by or originate from
the same developer and the projects serve unaffiliated
loads, the projects may be colocated if documentation
indicates affiliated management and ownership in the
pre-development, development, construction, and
management of the projects and the projects are
located on a single or adjacent parcels.
Notwithstanding any subsequent transfer, assignment,

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or conveyance of ownership or development rights to
separate legal entities, the Agency shall consider, in
its determination of whether projects are affiliated,
evidence that the projects were pre-developed by the
same legal entity or an affiliated entity. If the
Agency determines the projects are affiliated, the
projects shall be treated as colocated for purposes of
aggregate nameplate capacity limitations and renewable
energy credit pricing adjustments. The Agency shall
make exceptions on a case-by-case basis if it is
demonstrated that projects on one parcel or projects
on adjacent parcels are unaffiliated. For purposes of
determining colocation, an approved vendor who submits
an application for a distributed renewable energy
generation project shall be required to submit an
affidavit attesting that the project is not affiliated
with any other distributed renewable energy generation
project such that, if the 2 projects were deemed
colocated, the projects would exceed the 5,000
kilowatts nameplate capacity limitation. The receipt
of an affidavit shall not restrict the Agency's
ability to investigate and determine whether the
project is, in fact, colocated.
For purposes of this item (ii):
"Affiliate" has the meaning given to that term in
subitem (3) of item (iii) of this subparagraph (K).

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"Colocated" means 2 or more distributed renewable
energy generation projects that are located on a
single parcel, except for projects where the owner of
the applicable retail electric account is confirmed to
be unaffiliated and the projects serve distinct
electrical loads.
"Control" has the meaning given to that term in
subitem (3) of item (iii) of this subparagraph (K).
(iii) At least 30% from photovoltaic community
renewable generation projects. Capacity for this
category for the first 2 delivery years after the
effective date of this amendatory Act of the 102nd
General Assembly shall be allocated to waitlist
projects as provided in paragraph (3) of item (iv) of
subparagraph (G). Starting in the third delivery year
after the effective date of this amendatory Act of the
102nd General Assembly or earlier if the Agency
determines there is additional capacity needed for to
meet previous delivery year requirements, the
following shall apply:
(1) the Agency shall select projects on a
first-come, first-serve basis, however the Agency
may suggest additional methods to prioritize
projects that are submitted at the same time;
(2) projects shall have subscriptions of 25 kW
or less for at least 50% of the facility's

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nameplate capacity and the Agency shall price the
renewable energy credits with that as a factor;
(3) projects shall not be colocated with one
or more other photovoltaic community renewable
generation projects such that the aggregate
nameplate capacity exceeds 10,000 kilowatts. The
total nameplate capacity of colocated projects
shall be the sum of the nameplate capacities of
the individual projects. For purposes of this
subitem (3), separate legal formation of approved
vendors, owners, or developers shall not preclude
a finding of affiliation by the Agency. Evidence
of affiliation may include, but is not limited to,
shared personnel, common contractual or financing
arrangements, a shared interconnection agreement,
distinct interconnection agreements obtained by
the same pre-development entity that are
subsequently sold to distinct legal entities,
familial relationships, or any demonstrable
pattern of coordinated action in the
pre-development, development, construction, or
management of photovoltaic community renewable
generation projects.
The Agency shall determine affiliation based
on evidence that projects either (i) share a
common origin on a parcel that has been subdivided

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in the 5 years before the date of application or
(ii) were pre-developed before the beginning of
construction by the same legal entity or an
affiliated legal entity. The determination shall
be made notwithstanding any subsequent transfer,
assignment, or conveyance of ownership or
development rights to separate legal entities. If
the Agency determines the projects are affiliated,
the projects shall be treated as colocated for the
purposes of aggregate nameplate capacity
limitations and renewable energy credit pricing
adjustments. The Agency shall make exceptions to
this subitem (3) on a case-by-case basis if it is
demonstrated that projects on one parcel or
projects on adjacent parcels are unaffiliated.
A parcel shall not be divided into multiple
parcels within the 5 years before the submission
of a project application. If a parcel is divided
within the preceding 5 years, a colocation
determination shall be made based on the
boundaries of the previous undivided parcel.
For purposes of determining colocation, an
approved vendor who submits an application for a
community renewable generation project shall be
required to submit an affidavit attesting that (i)
the parcel on which the project is sited has not

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been subdivided within the 5 years preceding the
project application and (ii) the project is not
affiliated with any other community renewable
energy project in a manner that would cause the 2
projects, if deemed colocated, to exceed the
10,000 kilowatt nameplate capacity limitation. The
receipt of an affidavit shall not restrict the
Agency's ability to investigate and determine
whether the project is colocated.
Multiple community solar projects sited on
distinct structures located on a single parcel
shall be considered colocated and must demonstrate
that the projects are unaffiliated in order to not
be considered colocated. Each colocated project
shall receive the renewable energy credit price
corresponding to the total, aggregated nameplate
capacity of the colocated systems, as determined
at the time the second project's application is
submitted to the Agency. If the second colocated
project has been constructed and placed in service
prior to application, and was placed in service
more than 2 years after Commission approval of the
original project, the colocation pricing
adjustment shall not apply, and each project shall
receive the standalone renewable energy credit
price for its individual capacity.

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For purposes of this subitem (3):
"Affiliate" means any other entity that,
directly or indirectly through one or more
intermediaries, is controlled by or is under
common control of the primary entity or a third
entity. "Affiliate" includes family members for
the purposes of colocation between projects.
"Affiliate" does not include entities that have
shared sales or revenue-sharing arrangements or
common debt and equity financing arrangements.
"Colocated" means 2 or more photovoltaic
community renewable generation projects located on
a single parcel or adjacent parcels, unless it is
demonstrated that the projects are developed by
unaffiliated entities.
"Control" means the possession, directly or
indirectly, of the power to direct the management
and policies of an entity; and
(4) projects greater than 2 MW may not apply
until after the approval of the Agency's revised
Long-Term Renewable Resources Procurement Plan
after the effective date of this amendatory Act of
the 102nd General Assembly.
(iv) At least 15% from distributed renewable
generation devices or photovoltaic community renewable
generation projects installed on public school land.

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The Agency may create subcategories within this
category to account for the differences between
project size or location. Projects located within
environmental justice communities or within
Organizational Units that fall within Tier 1 or Tier 2
shall be given priority. Each of the Agency's periodic
updates to its long-term renewable resources
procurement plan to incorporate the procurement
described in this subparagraph (iv) shall also include
the proposed quantities or blocks, pricing, and
contract terms applicable to the procurement as
indicated herein. In each such update and procurement,
the Agency shall set the renewable energy credit price
and establish payment terms for the renewable energy
credits procured pursuant to this subparagraph (iv)
that make it feasible and affordable for public
schools to install photovoltaic distributed renewable
energy devices on their premises, including, but not
limited to, those public schools subject to the
prioritization provisions of this subparagraph. For
the purposes of this item (iv):
"Environmental Justice Community" shall have the
same meaning set forth in the Agency's long-term
renewable resources procurement plan;
"Organization Unit", "Tier 1" and "Tier 2" shall
have the meanings set forth for in Section 18-8.15 of

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the School Code;
"Public schools" shall have the meaning set forth
in Section 1-3 of the School Code and includes public
institutions of higher education, as defined in the
Board of Higher Education Act.
(v) At least 5% from community-driven community
solar projects intended to provide more direct and
tangible connection and benefits to the communities
which they serve or in which they operate and,
additionally, to increase the variety of community
solar locations, models, and options in Illinois. As
part of its long-term renewable resources procurement
plan, the Agency shall develop selection criteria for
projects participating in this category. Nothing in
this Section shall preclude the Agency from creating a
selection process that maximizes community ownership
and community benefits in selecting projects to
receive renewable energy credits. Selection criteria
shall include:
(1) community ownership or community
wealth-building;
(2) additional direct and indirect community
benefit, beyond project participation as a
subscriber, including, but not limited to,
economic, environmental, social, cultural, and
physical benefits;

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(3) meaningful involvement in project
organization and development by community members
or nonprofit organizations or public entities
located in or serving the community;
(4) engagement in project operations and
management by nonprofit organizations, public
entities, or community members; and
(5) whether a project is developed in response
to a site-specific RFP developed by community
members or a nonprofit organization or public
entity located in or serving the community.
Selection criteria may also prioritize projects
that:
(1) are developed in collaboration with or to
provide complementary opportunities for the Clean
Jobs Workforce Network Program, the Illinois
Climate Works Preapprenticeship Program, the
Returning Residents Clean Jobs Training Program,
the Clean Energy Contractor Incubator Program, or
the Clean Energy Primes Contractor Accelerator
Program;
(2) increase the diversity of locations of
community solar projects in Illinois, including by
locating in urban areas and population centers;
(3) are located in Equity Investment Eligible
Communities;

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(4) are not greenfield projects;
(5) serve only local subscribers;
(6) have a nameplate capacity that does not
exceed 500 kW;
(7) are developed by an equity eligible
contractor; or
(8) otherwise meaningfully advance the goals
of providing more direct and tangible connection
and benefits to the communities which they serve
or in which they operate and increasing the
variety of community solar locations, models, and
options in Illinois.
For the purposes of this item (v):
"Community" means a social unit in which people
come together regularly to effect change; a social
unit in which participants are marked by a cooperative
spirit, a common purpose, or shared interests or
characteristics; or a space understood by its
residents to be delineated through geographic
boundaries or landmarks.
"Community benefit" means a range of services and
activities that provide affirmative, economic,
environmental, social, cultural, or physical value to
a community; or a mechanism that enables economic
development, high-quality employment, and education
opportunities for local workers and residents, or

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formal monitoring and oversight structures such that
community members may ensure that those services and
activities respond to local knowledge and needs.
"Community ownership" means an arrangement in
which an electric generating facility is, or over time
will be, in significant part, owned collectively by
members of the community to which an electric
generating facility provides benefits; members of that
community participate in decisions regarding the
governance, operation, maintenance, and upgrades of
and to that facility; and members of that community
benefit from regular use of that facility.
Terms and guidance within these criteria that are
not defined in this item (v) shall be defined by the
Agency, with stakeholder input, during the development
of the Agency's long-term renewable resources
procurement plan. The Agency shall develop regular
opportunities for projects to submit applications for
projects under this category, and develop selection
criteria that gives preference to projects that better
meet individual criteria as well as projects that
address a higher number of criteria.
(vi) At least 10% from distributed renewable
energy generation devices, which includes distributed
renewable energy devices with a nameplate capacity
under 5,000 kilowatts or photovoltaic community

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renewable generation projects, from applicants that
are equity eligible contractors. The Agency may create
subcategories within this category to account for the
differences between project size and type. The Agency
shall propose to increase the percentage in this item
(vi) over time to 40% based on factors, including, but
not limited to, the number of equity eligible
contractors and capacity used in this item (vi) in
previous delivery years.
The Agency shall propose a payment structure for
contracts executed pursuant to this paragraph under
which, upon a demonstration of qualification or need
under criteria established by the Agency that is
focused on supporting small and emerging businesses
and businesses that most acutely face barriers to the
access of capital, applicant firms are advanced
capital disbursed after contract execution but before
the contracted project's energization. The amount or
percentage of capital advanced prior to project
energization shall be sufficient to both cover any
increase in development costs resulting from
prevailing wage requirements or project-labor
agreements, and designed to overcome barriers in
access to capital faced by equity eligible
contractors. The amount or percentage of advanced
capital may vary by subcategory within this category

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and by an applicant's demonstration of need, with such
levels to be established through the Long-Term
Renewable Resources Procurement Plan authorized under
subparagraph (A) of paragraph (1) of subsection (c) of
this Section and any application requirements or
evaluation criteria developed pursuant to the Plan.
Contracts developed featuring capital advanced
prior to a project's energization shall feature
provisions to ensure both the successful development
of applicant projects and the delivery of the
renewable energy credits for the full term of the
contract, including ongoing collateral requirements
and other provisions deemed necessary by the Agency,
and may include energization timelines longer than for
comparable project types. The percentage or amount of
capital advanced prior to project energization shall
not operate to increase the overall contract value,
however contracts executed under this subparagraph may
feature renewable energy credit prices higher than
those offered to similar projects participating in
other categories. Capital advanced prior to
energization shall serve to reduce the ratable
payments made after energization under items (ii) and
(iii) of subparagraph (L) or payments made for each
renewable energy credit delivery under item (iv) of
subparagraph (L).

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For projects developed under this item (vi), the
Agency shall take steps to encourage higher portions
of contract value to be provided to equity eligible
contractors and to support equity eligible persons who
participate in this Program and who exercise control
and actively manage their businesses and their
businesses' contractual projects. These steps may
include, but are not limited to, differentiated REC
prices, exceptions or exemptions, and other mechanisms
and requirements for nonnominal contract value to be
provided to equity eligible contractors and equity
eligible persons as a prerequisite to Program
participation. Any steps taken shall aim to encourage
and grow the meaningful participation of equity
eligible contractors in this State's clean energy
economy. All entities participating under this item
(vi) shall comply with the minimum equity standard set
forth under Section 1-75.
(vii) The remaining capacity shall be allocated by
the Agency in order to respond to market demand. The
Agency shall allocate any discretionary capacity prior
to the beginning of each delivery year.
(viii) The Agency, through its long-term renewable
resources procurement plan, may implement solutions to
maintain stable and consistent REC offerings allocated
to systems described in item (i) of this subparagraph

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(K) to avoid gaps in availability during a delivery
year, including, but not limited to, creating a
floating block of REC capacity in a given delivery
year.
To the extent there is uncontracted capacity from any
block in any of categories (i) through (vi) at the end of a
delivery year, the Agency shall redistribute that capacity
to one or more other categories giving priority to
categories with projects on a waitlist. The redistributed
capacity shall be added to the annual capacity in the
subsequent delivery year, and the price for renewable
energy credits shall be the price for the new delivery
year. Redistributed capacity shall not be considered
redistributed when determining whether the goals in this
subsection (K) have been met.
Notwithstanding anything to the contrary, as the
Agency increases the capacity in item (vi) to 40% over
time, the Agency may reduce the capacity of items (i)
through (v) proportionate to the capacity of the
categories of projects in item (vi), to achieve a balance
of project types.
The Adjustable Block program shall be designed to
ensure that renewable energy credits are procured from
projects in diverse locations and are not concentrated in
a few regional areas.
(L) Notwithstanding provisions for advancing capital

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prior to project energization found in item (vi) of
subparagraph (K), the procurement of photovoltaic
renewable energy credits under items (i) through (vi) of
subparagraph (K) of this paragraph (1) shall otherwise be
subject to the following contract and payment terms:
(i) (Blank).
(ii) Unless otherwise provided for in the Agency's
approved long-term plan, for those renewable energy
credits that qualify and are procured under item (i)
of subparagraph (K) of this paragraph (1), and any
similar category projects that are procured under item
(vi) of subparagraph (K) of this paragraph (1) that
qualify and are procured under item (vi), the contract
length shall be 15 years. Beginning on the effective
date of this amendatory Act of the 104th General
Assembly, and including the remainder of program year
2026-2027, 50% of the renewable energy credit delivery
contract value, based on the estimated generation
during the first 15 years of operation, shall be paid
by the contracting utilities at the time that the
facility producing the renewable energy credits is
interconnected at the distribution system level of the
utility and verified as energized and compliant by the
Program Administrator. The remaining portion of the
renewable energy credit delivery contract value shall
be paid ratably over the subsequent 6-year period.

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Relative to a contract structure under which the full
renewable energy credit delivery contract value shall
be paid in full at the time of interconnection and
verification of energization, the Agency shall
consider the impact of deferred payments across the
subsequent payment period when establishing renewable
energy credit prices. The electric utility shall
receive and retire all renewable energy credits
generated by the project for the first 15 years of
operation. Renewable energy credits generated by the
project thereafter shall not be transferred under the
renewable energy credit delivery contract with the
counterparty electric utility.
(iii) Unless otherwise provided for in the
Agency's approved long-term plan, for those renewable
energy credits that qualify and are procured under
item (ii) and (v) of subparagraph (K) of this
paragraph (1) and any like projects that qualify and
are procured under items (iv) and (vi), the contract
length shall be 15 years. 15% of the renewable energy
credit delivery contract value, based on the estimated
generation during the first 15 years of operation,
shall be paid by the contracting utilities at the time
that the facility producing the renewable energy
credits is interconnected at the distribution system
level of the utility and verified as energized and

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compliant by the Program Administrator. The remaining
portion shall be paid ratably over the subsequent
6-year period. The electric utility shall receive and
retire all renewable energy credits generated by the
project for the first 15 years of operation. Renewable
energy credits generated by the project thereafter
shall not be transferred under the renewable energy
credit delivery contract with the counterparty
electric utility.
(iv) Unless otherwise provided for in the Agency's
approved long-term plan, for those renewable energy
credits that qualify and are procured under item (iii)
of subparagraph (K) of this paragraph (1), and any
like projects that qualify and are procured under
items (iv) and (vi), the renewable energy credit
delivery contract length shall be 20 years and shall
be paid over the delivery term, not to exceed during
each delivery year the contract price multiplied by
the estimated annual renewable energy credit
generation amount. If generation of renewable energy
credits during a delivery year exceeds the estimated
annual generation amount, the excess renewable energy
credits shall be carried forward to future delivery
years and shall not expire during the delivery term.
If generation of renewable energy credits during a
delivery year, including carried forward excess

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renewable energy credits, if any, is less than the
estimated annual generation amount, payments during
such delivery year will not exceed the quantity
generated plus the quantity carried forward multiplied
by the contract price. The electric utility shall
receive all renewable energy credits generated by the
project during the first 20 years of operation and
retire all renewable energy credits paid for under
this item (iv) and return at the end of the delivery
term all renewable energy credits that were not paid
for. Renewable energy credits generated by the project
thereafter shall not be transferred under the
renewable energy credit delivery contract with the
counterparty electric utility. Notwithstanding the
preceding, for those projects participating under item
(iii) of subparagraph (K), the contract price for a
delivery year shall be based on subscription levels as
measured on the higher of the first business day of the
delivery year or the first business day 6 months after
the first business day of the delivery year.
Subscription of 90% of nameplate capacity or greater
shall be deemed to be fully subscribed for the
purposes of this item (iv). For projects receiving a
20-year delivery contract, REC prices shall be
adjusted downward for consistency with the incentive
levels previously determined to be necessary to

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support projects under 15-year delivery contracts,
taking into consideration any additional new
requirements placed on the projects, including, but
not limited to, labor standards.
(v) Each contract shall include provisions to
ensure the delivery of the estimated quantity of
renewable energy credits and ongoing collateral
requirements and other provisions deemed appropriate
by the Agency.
(vi) The utility shall be the counterparty to the
contracts executed under this subparagraph (L) that
are approved by the Commission under the process
described in Section 16-111.5 of the Public Utilities
Act. No contract shall be executed for an amount that
is less than one renewable energy credit per year.
(vii) If, at any time, approved applications for
the Adjustable Block program exceed funds collected by
the electric utility or would cause the Agency to
exceed the limitation described in subparagraph (E) of
this paragraph (1) on the amount of renewable energy
resources that may be procured, then the Agency may
consider future uncommitted funds to be reserved for
these contracts on a first-come, first-served basis.
(viii) Nothing in this Section shall require the
utility to advance any payment or pay any amounts that
exceed the actual amount of revenues anticipated to be

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collected by the utility under paragraph (6) of this
subsection (c) and subsection (k) of Section 16-108 of
the Public Utilities Act inclusive of eligible funds
collected in prior years and alternative compliance
payments for use by the utility.
(ix) Notwithstanding other requirements of this
subparagraph (L), no modification shall be required to
Adjustable Block program contracts if they were
already executed prior to the establishment, approval,
and implementation of new contract forms as a result
of this amendatory Act of the 102nd General Assembly.
(x) Contracts may be assignable, but only to
entities first deemed by the Agency to have met
program terms and requirements applicable to direct
program participation. In developing contracts for the
delivery of renewable energy credits, the Agency shall
be permitted to establish fees applicable to each
contract assignment.
(M) The Agency shall be authorized to retain one or
more experts or expert consulting firms to develop,
administer, implement, operate, and evaluate the
Adjustable Block program described in subparagraph (K) of
this paragraph (1), as well as the Geothermal Homes and
Businesses Program described in subparagraph (S) of this
paragraph (1), and the Agency shall retain the consultant
or consultants in the same manner, to the extent

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practicable, as the Agency retains others to administer
provisions of this Act, including, but not limited to, the
procurement administrator. The selection of experts and
expert consulting firms and the procurement process
described in this subparagraph (M) are exempt from the
requirements of Section 20-10 of the Illinois Procurement
Code, under Section 20-10 of that Code. The Agency shall
strive to minimize administrative expenses in the
implementation of the Adjustable Block program.
The Program Administrator may charge application fees
to participating firms to cover the cost of program
administration. Any application fee amounts shall
initially be determined through the long-term renewable
resources procurement plan, and modifications to any
application fee that deviate more than 25% from the
Commission's approved value must be approved by the
Commission as a long-term plan revision under Section
16-111.5 of the Public Utilities Act. The Agency shall
consider stakeholder feedback when making adjustments to
application fees and shall notify stakeholders in advance
of any planned changes.
In addition to covering the costs of program
administration, the Agency, in conjunction with its
Program Administrator, may also use the proceeds of such
fees charged to participating firms to support public
education and ongoing regional and national coordination

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with nonprofit organizations, public bodies, and others
engaged in the implementation of renewable energy
incentive programs or similar initiatives. This work may
include developing papers and reports, hosting regional
and national conferences, and other work deemed necessary
by the Agency to position the State of Illinois as a
national leader in renewable energy incentive program
development and administration.
The Agency and its consultant or consultants shall
monitor block activity, share program activity with
stakeholders and conduct quarterly meetings to discuss
program activity and market conditions. If necessary, the
Agency may make prospective administrative adjustments to
the Adjustable Block program and the Geothermal Homes and
Businesses Program design, such as making adjustments to
purchase prices as necessary to achieve the goals of this
subsection (c). Program modifications to any block price
that do not deviate from the Commission's approved value
by more than 10% shall take effect immediately and are not
subject to Commission review and approval. Program
modifications to any block price that deviate more than
10% from the Commission's approved value must be approved
by the Commission as a long-term plan amendment under
Section 16-111.5 of the Public Utilities Act. The Agency
shall consider stakeholder feedback when making
adjustments to the Adjustable Block and the Geothermal

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Homes and Businesses Program design and shall notify
stakeholders in advance of any planned changes.
The Agency and its program administrators for the
Adjustable Block program, the Illinois Solar for All
Program, and the Geothermal Homes and Businesses Program
consistent with the requirements of this subsection (c)
and subsection (b) of Section 1-56 of this Act, shall
propose the Adjustable Block program terms, conditions,
and requirements, including the prices to be paid for
renewable energy credits, where applicable, and
requirements applicable to participating entities and
project applications, through the development, review, and
approval of the Agency's long-term renewable resources
procurement plan described in this subsection (c) and
paragraph (5) of subsection (b) of Section 16-111.5 of the
Public Utilities Act. Terms, conditions, and requirements
for program participation shall include the following:
(i) The Agency shall establish a registration
process for entities seeking to qualify for
program-administered incentive funding and establish
baseline qualifications for vendor approval. The
Agency shall also establish program requirements and
minimum contract terms for vendors and others involved
in the marketing, sale, installation, and financing of
distributed generation systems and community solar
subscriptions to prevent misleading marketing and

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abusive practices and to otherwise protect customers.
The Agency must maintain a list of approved entities
on each program's website, and may revoke a vendor's
ability to receive program-administered incentive
funding status upon a determination that the vendor
failed to comply with contract terms, the law, or
other program requirements.
(ii) The Agency shall establish program
requirements and minimum contract terms to ensure
projects are properly installed and produce their
expected amounts of energy. Program requirements may
include on-site inspections and photo documentation of
projects under construction. The Agency may require
repairs, alterations, or additions to remedy any
material deficiencies discovered. Vendors who have a
disproportionately high number of deficient systems
may lose their eligibility to continue to receive
State-administered incentive funding through Agency
programs and procurements.
(iii) To discourage deceptive marketing or other
bad faith business practices, the Agency may require
direct program participants, including agents
operating on their behalf, to provide standardized
disclosures to a customer prior to that customer's
execution of a contract for the development of a
distributed generation system, a subscription to a

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community solar project, or the development of a
geothermal heating and cooling system.
(iv) The Agency shall establish one or multiple
Consumer Complaints Centers to accept complaints
regarding businesses that participate in, or otherwise
benefit from, State-administered incentive funding
through Agency-administered programs. The Agency shall
maintain a public database of complaints with any
confidential or particularly sensitive information
redacted from public entries.
(v) Through a filing in the proceeding for the
approval of its long-term renewable energy resources
procurement plan, the Agency shall provide an annual
written report to the Illinois Commerce Commission
documenting the frequency and nature of complaints and
any enforcement actions taken in response to those
complaints.
(vi) The Agency shall schedule regular meetings
with representatives of the Office of the Attorney
General, the Illinois Commerce Commission, consumer
protection groups, and other interested stakeholders
to share relevant information about consumer
protection, project compliance, and complaints
received.
(vii) To the extent that complaints received
implicate the jurisdiction of the Office of the

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Attorney General, the Illinois Commerce Commission, or
local, State, or federal law enforcement, the Agency
shall also refer complaints to those entities as
appropriate.
(viii) The Agency may, at its discretion,
establish a registration process for entities, or a
subset of entities, that provide financing for
consumers for the purchase of distributed renewable
generation devices. The Agency may establish baseline
qualifications for financing entity approval,
including defining the circumstances under which
financing entities may be subject to registration. The
Agency may also establish program requirements for
entities that provide financing for the purchase of
distributed renewable generation devices, which may
include marketing and disclosure requirements, other
requirements as further defined by the Agency through
its long-term plan, and any consumer protection
requirements developed or modified thereto. If the
Agency establishes a registration process for
financing entities, the Agency may revoke a financing
entity's approval in a program upon a determination
that the financing entity failed to comply with
contract terms, the law, or other program
requirements. The Agency may also establish program
requirements that prohibit distributed renewable

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generation devices intending to apply for
program-administered incentive funding from receiving
program funding if the consumer's purchase of the
device was financed by an entity whose approval status
in the program has been revoked. These registration
requirements may apply to entities that finance
projects intended to apply for program-administered
incentive funding even if those entities do not
receive any portion of the program-administered
incentive funding.
(ix) The Agency, at its discretion, may require
that vendors, as part of the application and annual
recertification process, present the Agency or its
designee with a security bond equal to an amount
determined to be reasonable by the Agency. The bond
shall be for the benefit of customers harmed by the
vendor's violation of Agency requirements or other
applicable laws or regulations. The Agency may
determine that it is reasonable to have no bond
requirement for some categories of vendors or enhanced
bond requirements for vendors that the Agency has
deemed to pose more acute risks.
(x) For distributed renewable generation devices,
the Agency may, in its discretion, establish
provisions that restrict, prohibit, or create
additional requirements for distributed renewable

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generation device sales or financing offers through
which the customer is promised the pass-through of a
portion or all of the payments received by the
approved vendor for the delivery of renewable energy
credits only after the receipt of such payment by the
approved vendor. The requirements may include the use
of an escrow process developed by the Agency through
which renewable energy credit payments are made to an
escrow agent who then disburses the promised amount to
the customer and the remainder to the vendor. The
requirements in this item (x) shall in no way prohibit
the upfront discounting of the purchase price, lease
payment, or power purchase agreement rate based on the
anticipated receipt of renewable energy credit
contract payments by the approved vendor.
(xi) To the extent that distributed renewable
generation device sales or financing offers through
which the customer is promised the pass-through of a
portion or all of the payments received by the vendor
for the delivery of renewable energy credits after the
receipt of such payment by the vendor are permitted,
the following requirements may be implemented, at the
Agency's discretion, in a time and manner determined
by the Agency:
(I) the vendor shall submit proof of customer
payments to the Agency as the Agency deems

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necessary; and
(II) the vendor shall represent and warrant on
a form developed by the Agency that the vendor is
not insolvent, has not voluntarily filed for
bankruptcy, and has not been subject to or
threatened with involuntary insolvency.
(xii) To ensure that customers receive full and
uninterrupted benefits and services promised by
vendors, the Agency may propose additional solutions
through its long-term renewable resources procurement
plan described in this subsection (c) and paragraph
(5) of subsection (b) of Section 16-111.5 of the
Public Utilities Act. The solutions may allow for
collections made pursuant to subsection (k) of Section
16-108 of the Public Utilities Act to support the
programs and procurements outlined in paragraph (1) of
subsection (c) of this Section to be leveraged to (1)
ensure that a vendor's promised payments are received
by customers, (2) incentivize vendors to establish
service agreements with customers whose original
vendor has become nonresponsive, (3) ensure that
customers receive restitution for financial harm
proven to be caused by a program vendor or its
designee, or (4) otherwise ensure that customers do
not suffer loss or harm through activities supported
by the Adjustable Block program and the Illinois Solar

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for All Program.
(N) The Agency shall establish the terms, conditions,
and program requirements for photovoltaic community
renewable generation projects with a goal to expand access
to a broader group of energy consumers, to ensure robust
participation opportunities for residential and small
commercial customers and those who cannot install
renewable energy on their own properties. Subject to
reasonable limitations, any plan approved by the
Commission shall allow subscriptions to community
renewable generation projects to be portable and
transferable. For purposes of this subparagraph (N),
"portable" means that subscriptions may be retained by the
subscriber even if the subscriber relocates or changes its
address within the same utility service territory; and
"transferable" means that a subscriber may assign or sell
subscriptions to another person within the same utility
service territory.
Through the development of its long-term renewable
resources procurement plan, the Agency may consider
whether community renewable generation projects utilizing
technologies other than photovoltaics should be supported
through State-administered incentive funding, and may
issue requests for information to gauge market demand.
Electric utilities shall provide a monetary credit to
a subscriber's subsequent bill for service for the

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proportional output of a community renewable generation
project attributable to that subscriber as specified in
Section 16-107.5 of the Public Utilities Act.
The Agency shall purchase renewable energy credits
from subscribed shares of photovoltaic community renewable
generation projects through the Adjustable Block program
described in subparagraph (K) of this paragraph (1) or
through the Illinois Solar for All Program described in
Section 1-56 of this Act. The electric utility shall
purchase any unsubscribed energy from community renewable
generation projects that are Qualifying Facilities ("QF")
under the electric utility's tariff for purchasing the
output from QFs under Public Utilities Regulatory Policies
Act of 1978.
The owners of and any subscribers to a community
renewable generation project shall not be considered
public utilities or alternative retail electricity
suppliers under the Public Utilities Act solely as a
result of their interest in or subscription to a community
renewable generation project and shall not be required to
become an alternative retail electric supplier by
participating in a community renewable generation project
with a public utility.
(O) For the delivery year beginning June 1, 2018, the
long-term renewable resources procurement plan required by
this subsection (c) shall provide for the Agency to

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procure contracts to continue offering the Illinois Solar
for All Program described in subsection (b) of Section
1-56 of this Act, and the contracts approved by the
Commission shall be executed by the utilities that are
subject to this subsection (c). The long-term renewable
resources procurement plan shall allocate up to
$50,000,000 per delivery year to fund the programs, and
the plan shall determine the amount of funding to be
apportioned to the programs identified in subsection (b)
of Section 1-56 of this Act; provided that for the
delivery years beginning June 1, 2021, June 1, 2022, and
June 1, 2023, the long-term renewable resources
procurement plan may average the annual budgets over a
3-year period to account for program ramp-up. For the
delivery years beginning June 1, 2021, June 1, 2024, June
1, 2027, and June 1, 2030 and additional $10,000,000 shall
be provided to the Department of Commerce and Economic
Opportunity to implement the workforce development
programs and reporting as outlined in Section 16-108.12 of
the Public Utilities Act. In making the determinations
required under this subparagraph (O), the Commission shall
consider the experience and performance under the programs
and any evaluation reports. The Commission shall also
provide for an independent evaluation of those programs on
a periodic basis that are funded under this subparagraph
(O).

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(P) All programs and procurements under this
subsection (c) shall be designed to encourage
participating projects to use a diverse and equitable
workforce and a diverse set of contractors, including
minority-owned businesses, disadvantaged businesses,
trade unions, graduates of any workforce training programs
administered under this Act, and small businesses.
The Agency shall develop a method to optimize
procurement of renewable energy credits from proposed
utility-scale projects that are located in communities
eligible to receive Energy Transition Community Grants
pursuant to Section 10-20 of the Energy Community
Reinvestment Act. If this requirement conflicts with other
provisions of law or the Agency determines that full
compliance with the requirements of this subparagraph (P)
would be unreasonably costly or administratively
impractical, the Agency is to propose alternative
approaches to achieve development of renewable energy
resources in communities eligible to receive Energy
Transition Community Grants pursuant to Section 10-20 of
the Energy Community Reinvestment Act or seek an exemption
from this requirement from the Commission.
(Q) Each facility listed in subitems (i) through (ix)
of item (1) of this subparagraph (Q) for which a renewable
energy credit delivery contract is signed after the
effective date of this amendatory Act of the 102nd General

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Assembly is subject to the following requirements through
the Agency's long-term renewable resources procurement
plan:
(1) Each facility shall be subject to the
prevailing wage requirements included in the
Prevailing Wage Act. The Agency shall require
verification that all construction performed on the
facility by the renewable energy credit delivery
contract holder, its contractors, or its
subcontractors relating to construction of the
facility is performed by construction employees
receiving an amount for that work equal to or greater
than the general prevailing rate, as that term is
defined in Section 2 of the Prevailing Wage Act. For
purposes of this item (1), "house of worship" means
property that is both (1) used exclusively by a
religious society or body of persons as a place for
religious exercise or religious worship and (2)
recognized as exempt from taxation pursuant to Section
15-40 of the Property Tax Code. This item (1) shall
apply to any of the following:
(i) all new utility-scale wind projects;
(ii) all new utility-scale photovoltaic
projects and repowered wind projects;
(iii) all new brownfield photovoltaic
projects;

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(iv) all new photovoltaic community renewable
energy facilities that qualify for item (iii) of
subparagraph (K) of this paragraph (1);
(v) all new community driven community
photovoltaic projects that qualify for item (v) of
subparagraph (K) of this paragraph (1);
(vi) all new photovoltaic projects on public
school land that qualify for item (iv) of
subparagraph (K) of this paragraph (1);
(vii) all new photovoltaic distributed
renewable energy generation devices that (1)
qualify for item (i) of subparagraph (K) of this
paragraph (1); (2) are not projects that serve
single-family or multi-family residential
buildings; and (3) are not houses of worship where
the aggregate capacity including colocated
projects would not exceed 100 kilowatts;
(viii) all new photovoltaic distributed
renewable energy generation devices that (1)
qualify for item (ii) of subparagraph (K) of this
paragraph (1); (2) are not projects that serve
single-family or multi-family residential
buildings; and (3) are not houses of worship where
the aggregate capacity including colocated
projects would not exceed 100 kilowatts;
(ix) all new, modernized, or retooled

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hydropower facilities;
(x) all new geothermal heating and cooling
systems awarded through the Geothermal Homes and
Businesses Program under subparagraph (S) of this
paragraph (1) that do not serve (1) single-family
residential buildings, (2) multi-family
residential buildings with aggregate geothermal
system tonnage, including colocated projects, of
no more than 29 tons, or (3) houses of worship with
aggregate geothermal system tonnage, including
colocated projects, of no more than 29 tons.
(2) Renewable energy credits procured from new
utility-scale wind projects, new utility-scale solar
projects, new brownfield solar projects, repowered
wind projects, and retooled hydropower facilities
pursuant to Agency procurement events occurring after
the effective date of this amendatory Act of the 102nd
General Assembly and photovoltaic community renewable
generation projects where the aggregate capacity,
including colocated projects, exceeds 3,000 kilowatts
pursuant to a renewable energy credit delivery
contract approved by the Illinois Commerce Commission
under the Adjustable Block Program after the effective
date of this amendatory Act of the 104th General
Assembly must be from facilities built by general
contractors that must enter into a project labor

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agreement, as defined by this Act, prior to
construction. Photovoltaic community renewable
generation projects on a program waitlist as of the
effective date of this amendatory Act of the 104th
General Assembly awarded capacity for the program year
commencing June 1, 2026 or any program year thereafter
shall not be exempt from the project labor agreement
requirements of this item (2). The project labor
agreement shall be filed with the Director in
accordance with procedures established by the Agency
through its long-term renewable resources procurement
plan. Any information submitted to the Agency in this
item (2) shall be considered commercially sensitive
information. At a minimum, the project labor agreement
must provide the names, addresses, and occupations of
the owner of the plant and the individuals
representing the labor organization employees
participating in the project labor agreement
consistent with the Project Labor Agreements Act. The
agreement must also specify the terms and conditions
as defined by this Act.
(2.5) Energy storage credits procured from battery
storage projects pursuant to Agency procurement events
and additional energy storage resources procured in
accordance with subparagraph (B) of paragraph (3) of
subsection (d-20) of this Section pursuant to Agency

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procurement events occurring after the effective date
of this amendatory Act of the 104th General Assembly
must be from facilities built by general contractors
that must enter into a project labor agreement prior
to construction. The project labor agreement shall be
filed with the Director in accordance with procedures
established by the Agency through its long-term
renewable resources procurement plan. Any information
submitted to the Agency pursuant to this item (2.5)
shall be considered commercially sensitive
information. At a minimum, the project labor agreement
must provide the names, addresses, and occupations of
the owner of the plant and the individuals
representing the labor organization employees
participating in the project labor agreement
consistent with the Project Labor Agreements Act. The
agreement must also specify the terms and conditions,
as defined by this Act.
(3) It is the intent of this Section to ensure that
economic development occurs across Illinois
communities, that emerging businesses may grow, and
that there is improved access to the clean energy
economy by persons who have greater economic burdens
to success. The Agency shall take into consideration
the unique cost of compliance of this subparagraph (Q)
that might be borne by equity eligible contractors,

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shall include such costs when determining the price of
renewable energy credits in the Adjustable Block
program and the Geothermal Homes and Businesses
Program, and shall take such costs into consideration
in a nondiscriminatory manner when comparing bids for
competitive procurements. The Agency shall consider
costs associated with compliance whether in the
development, financing, or construction of projects.
The Agency shall periodically review the assumptions
in these costs and may adjust prices, in compliance
with subparagraph (M) of this paragraph (1).
(4) The Agency shall create a public resource that
identifies the holders of REC delivery contracts and
any contractors, developers, and subcontractors that
contribute significantly to project completion and
employ workers performing construction activities for
utility-scale wind projects, new utility-scale solar
projects, new brownfield solar projects, repowered
wind projects, and retooled hydropower facilities and
that is:
(i) publicly accessible;
(ii) easy for people to find and use;
(iii) populated with information that
includes, but is not limited to, project names,
project size, and contact information of
subcontractors who employ workers performing

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construction activities on the projects, as
limited by Section 1-120; and
(iv) updated regularly.
Approved vendors shall notify the Agency if
subcontractors are removed or added to the project
workforce and the changes shall be reflected in the
public resource.
For community solar projects that receive a
renewable energy credit delivery contract under the
program described in subparagraph (K) of paragraph
(1), if an approved vendor or the approved vendor's
contractor intends to solicit bids for the
construction or development of the project, the
approved vendor or the contractor shall post the
solicitation on a public website for the duration of
the solicitation period and for 30 days after the
close of the solicitation period. The approved vendor
shall provide the URL for the public website to the
Agency and the Agency shall make one URL for each
approved vendor publicly available on the Agency's
website. Each bid solicitation by an approved vendor
shall be posted to the same URL.
(R) In its long-term renewable resources procurement
plan, the Agency shall establish a self-direct renewable
portfolio standard compliance program for eligible
self-direct customers that purchase renewable energy

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credits from utility-scale wind and solar projects through
long-term agreements for purchase of renewable energy
credits as described in this Section. Such long-term
agreements may include the purchase of energy or other
products on a physical or financial basis and may involve
an alternative retail electric supplier as defined in
Section 16-102 of the Public Utilities Act. This program
shall take effect in the delivery year commencing June 1,
2023.
(1) For the purposes of this subparagraph:
"Eligible self-direct customer" means any retail
customers of an electric utility that serves 3,000,000
or more retail customers in the State and whose total
highest 30-minute demand was more than 10,000
kilowatts, or any retail customers of an electric
utility that serves less than 3,000,000 retail
customers but more than 500,000 retail customers in
the State and whose total highest 15-minute demand was
more than 10,000 kilowatts.
"Retail customer" has the meaning set forth in
Section 16-102 of the Public Utilities Act and
multiple retail customer accounts under the same
corporate parent may aggregate their account demands
to meet the 10,000 kilowatt threshold. The criteria
for determining whether this subparagraph is
applicable to a retail customer shall be based on the

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12 consecutive billing periods prior to the start of
the year in which the application is filed.
(2) For renewable energy credits to count toward
the self-direct renewable portfolio standard
compliance program, they must:
(i) qualify as renewable energy credits as
defined in Section 1-10 of this Act;
(ii) be sourced from one or more renewable
energy generating facilities that comply with the
geographic requirements as set forth in
subparagraph (I) of paragraph (1) of subsection
(c) as interpreted through the Agency's long-term
renewable resources procurement plan, or, where
applicable, the geographic requirements that
governed utility-scale renewable energy credits at
the time the eligible self-direct customer entered
into the applicable renewable energy credit
purchase agreement;
(iii) be procured through long-term contracts
with term lengths of at least 10 years either
directly with the renewable energy generating
facility or through a bundled power purchase
agreement, a virtual power purchase agreement, an
agreement between the renewable generating
facility, an alternative retail electric supplier,
and the customer, or such other structure as is

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permissible under this subparagraph (R);
(iv) be equivalent in volume to at least 40%
of the eligible self-direct customer's usage,
determined annually by the eligible self-direct
customer's usage during the previous delivery
year, measured to the nearest megawatt-hour;
(v) be retired by or on behalf of the large
energy customer;
(vi) be sourced from new utility-scale wind
projects or new utility-scale solar projects; and
(vii) if the contracts for renewable energy
credits are entered into after the effective date
of this amendatory Act of the 102nd General
Assembly, the new utility-scale wind projects or
new utility-scale solar projects must comply with
the requirements established in subparagraphs (P)
and (Q) of paragraph (1) of this subsection (c)
and subsection (c-10).
(3) The self-direct renewable portfolio standard
compliance program shall be designed to allow eligible
self-direct customers to procure new renewable energy
credits from new utility-scale wind projects or new
utility-scale photovoltaic projects. The Agency shall
annually determine the amount of utility-scale
renewable energy credits it will include each year
from the self-direct renewable portfolio standard

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compliance program, subject to receiving qualifying
applications. In making this determination, the Agency
shall evaluate publicly available analyses and studies
of the potential market size for utility-scale
renewable energy long-term purchase agreements by
commercial and industrial energy customers and make
that report publicly available. If demand for
participation in the self-direct renewable portfolio
standard compliance program exceeds availability, the
Agency shall ensure participation is evenly split
between commercial and industrial users to the extent
there is sufficient demand from both customer classes.
Each renewable energy credit procured pursuant to this
subparagraph (R) by a self-direct customer shall
reduce the total volume of renewable energy credits
the Agency is otherwise required to procure from new
utility-scale projects pursuant to subparagraph (C) of
paragraph (1) of this subsection (c) on behalf of
contracting utilities where the eligible self-direct
customer is located. The self-direct customer shall
file an annual compliance report with the Agency
pursuant to terms established by the Agency through
its long-term renewable resources procurement plan to
be eligible for participation in this program.
Customers must provide the Agency with their most
recent electricity billing statements or other

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

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through the Adjustable Block Program, subsection (c-5)
of this Section 1-75, and the Solar for All Program.
The Agency shall assist the Commission in determining
the current and future costs. The Agency must
determine the self-direct credit amount for new and
existing eligible self-direct customers and submit
this to the Commission in an annual compliance filing.
The Commission must approve the self-direct credit
amount by June 1, 2023 and June 1 of each delivery year
thereafter.
(5) Customers described in this subparagraph (R)
shall apply, on a form developed by the Agency, to the
Agency to be designated as a self-direct eligible
customer. Once the Agency determines that a
self-direct customer is eligible for participation in
the program, the self-direct customer will remain
eligible until the end of the term of the contract.
Thereafter, application may be made not less than 12
months before the filing date of the long-term
renewable resources procurement plan described in this
Act. At a minimum, such application shall contain the
following:
(i) the customer's certification that, at the
time of the customer's application, the customer
qualifies to be a self-direct eligible customer,
including documents demonstrating that

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qualification;
(ii) the customer's certification that the
customer has entered into or will enter into by
the beginning of the applicable procurement year,
one or more bilateral contracts for new wind
projects or new photovoltaic projects, including
supporting documentation;
(iii) certification that the contract or
contracts for new renewable energy resources are
long-term contracts with term lengths of at least
10 years, including supporting documentation;
(iv) certification of the quantities of
renewable energy credits that the customer will
purchase each year under such contract or
contracts, including supporting documentation;
(v) proof that the contract is sufficient to
produce renewable energy credits to be equivalent
in volume to at least 40% of the large energy
customer's usage from the previous delivery year,
measured to the nearest megawatt-hour; and
(vi) certification that the customer intends
to maintain the contract for the duration of the
length of the contract.
(6) If a customer receives the self-direct credit
but fails to properly procure and retire renewable
energy credits as required under this subparagraph

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(R), the Commission, on petition from the Agency and
after notice and hearing, may direct such customer's
utility to recover the cost of the wrongfully received
self-direct credits plus interest through an adder to
charges assessed pursuant to Section 16-108 of the
Public Utilities Act. Self-direct customers who
knowingly fail to properly procure and retire
renewable energy credits and do not notify the Agency
are ineligible for continued participation in the
self-direct renewable portfolio standard compliance
program.
(S) Beginning with the long-term renewable resources
procurement plan covering program and procurement activity
for the delivery year beginning on June 1, 2028, any
long-term renewable resources procurement plan developed
by the Agency in accordance with subparagraph (A) of this
paragraph (1) shall include a Geothermal Homes and
Businesses Program for the procurement of geothermal
renewable energy credits from new geothermal heating and
cooling systems. The long-term renewable resources
procurement plan shall allocate up to $10,000,000 per
delivery year to fund the Program as described in this
subparagraph (S). The Program shall be designed to
stimulate the steady, predictable, and sustainable growth
of new geothermal heating and cooling system deployment in
this State and meet gaps in the marketplace. To this end,

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the Geothermal Homes and Businesses Program shall provide
a transparent annual schedule of prices and quantities to
enable the geothermal heating and cooling market to scale
up and renewable energy credit prices to adjust at a
predictable rate over time. The prices set by the
Geothermal Homes and Businesses Program may be reflected
as a set value or as the product of a formula.
(i) The Geothermal Homes and Businesses Program
shall allocate blocks of renewable energy credits as
follows:
(1) The Agency may create categories for the
Program based on structure features and use cases,
including categories based on the nature and size
of the Program's projects, customers, communities
in which a project is located, and other
attributes, defined at the discretion of the
Agency through its long-term plan.
(2) The Agency shall propose an initial single
annual block for each Program delivery year for
each category it creates through the delivery year
beginning on June 1, 2035. The Program shall
include the following for eligible projects for
each delivery year: (I) a block of geothermal
renewable energy credit volumes; (II) a price for
renewable energy credits from geothermal heating
and cooling systems within the identified block;

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and (III) the terms and conditions for securing a
spot on a waitlist once the block is fully
committed or reserved. The Agency may periodically
review its prior decisions establishing the amount
of geothermal renewable energy credit volumes in
each annual block and the purchase price for each
block and may propose, on an expedited basis,
changes to the previously set values, including,
but not limited to, redistributing the amounts and
the available funds as necessary and appropriate,
subject to Commission approval. The Agency may
define different block sizes, purchase prices, or
other distinct terms and conditions for projects
located in different utility service territories
if the Agency deems it necessary.
(3) The Agency may develop an intra-year and
year-to-year waitlist and block reservation policy
that balances market certainty, program
availability, and expedient project deployment.
(4) For the program year beginning on June 1,
2028, at least 33% of each annual block shall be
available to be reserved for systems that are
residential, as defined by the Agency. The Agency
shall endeavor to ensure at least 40% of each
annual block is available to be reserved by
systems located in Equity Investment Eligible

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Communities. At least 10% of all annual blocks
shall be available to be reserved by systems from
applicants that are equity eligible contractors,
and the Agency shall propose to increase the
percentage of systems from applicants that are
equity eligible contractors over time to 40% based
on factors that include, but are not limited to,
the number of equity eligible contractors and the
volume used under this clause (4) in previous
delivery years. For long-term renewable resources
procurement plans developed thereafter, the Agency
may propose adjustments to the minimum percentages
based on developer interest, market interest and
availability, and other factors.
(5) The Agency shall establish Program
eligibility requirements that ensure that systems
that enter the Program are sufficiently mature
enough to indicate a demonstrable path to
completion and other terms, conditions, and
requirements for the program, including vendor
registration and approval, sales and marketing
requirements, and other consumer protection
requirements as the Agency deems necessary.
(6) The Program shall be designed to ensure
that geothermal renewable energy credits are
procured from projects in diverse locations and

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are not procured from projects that are
concentrated in a few regional areas.
(7) The Agency, through its long-term
renewable resources procurement plan, may
implement solutions to maintain stable and
consistent REC offerings to avoid gaps in
availability during a delivery year, including,
but not limited to, creating a floating block of
REC capacity in a given delivery year.
(ii) Energy derived from a geothermal heating and
cooling system shall be eligible for inclusion in
meeting the requirements of the Program. Geothermal
renewable energy credits shall be expressed in
megawatt-hour units. To make this calculation, the
Agency (1) shall identify an appropriate formula
supported by a geothermal industry trade organization,
a national laboratory, or another data-backed and
verifiable methodology, (2) may propose adjustments to
any formulas for its proposed renewable energy credit
calculation methodology, and (3) may reflect
calculation methodologies already in use for other
State renewable portfolio standards, if applicable and
appropriate. The Agency shall determine the form and
manner in which the renewable energy credits are
verified and retired, in accordance with national best
practices.

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Geothermal renewable energy credits retired by
obligated utilities for compliance with the Program
are only valid for compliance if those geothermal
renewable energy credits have not been previously
retired by another entity that is not the obligated
utility on any tracking system, carbon registry, or
other accounting mechanism at any time. Additionally,
geothermal renewable energy credits retired by
obligated utilities for compliance with the Program
shall only be valid for compliance if those geothermal
renewable energy credits have not been used to
substantiate a public emissions or energy usage claim
by any other another entity that is not the obligated
utility, of any type and at any time, whether or not
the geothermal renewable energy credits were actually
retired on a tracking system, registry, or other
accounting mechanism at the time of the public
emissions-based claim. Geothermal renewable energy
credits generated for compliance with the Program
shall be valid only if retired once, and claimed once,
by the obligated utility.
In order to promote the competitive development of
geothermal heating and cooling systems in furtherance
of this State's interest in the health, safety, and
welfare of its residents, renewable energy credits
from geothermal heating and cooling systems shall not

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be eligible for purchase and retirement under this Act
if the credits are sourced from a geothermal heating
and cooling system for which costs are being recovered
on or after the effective date of this amendatory Act
of the 104th General Assembly through rates regulated
by this State or any other state.
(iii) The Agency shall establish Program
requirements and minimum contract terms to ensure that
projects are properly installed and that projects
operate to the level of expected benefits. The
contract terms shall include, but are not limited to,
the following:
(1) The capital that is not advanced shall be
disbursed upon a schedule determined by the
Agency, based on the total contracted fulfillment
over the delivery term, not to exceed, during each
delivery year, the contract price multiplied by
the estimated annual renewable energy credit
generation amount. Payment structures shall
include provisions that provide portions of the
renewable energy credit delivery contract value
upon energization, including no less than 40% of
the contract value for residential projects, based
on the estimated renewable energy credit
production during the contract term.
(2) For renewable energy credits that qualify

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and are procured under the Program, the delivery
contract length shall be 15 years.
(3) For contracts that are paid upon the
delivery of renewable energy credits, if
generation of renewable energy credits from
geothermal heating and cooling systems during a
delivery year exceeds the estimated annual
generation amount, the excess of such renewable
energy credits shall be carried forward to future
delivery years and shall not expire during the
delivery term. If the renewable energy credit
generation during a delivery year, including any
carried forward excess renewable energy credits,
is less than the estimated annual generation
amount, payments during the delivery year shall
not exceed the quantity generated plus the
quantity carried forward multiplied by the
contract price. The electric utility shall receive
all renewable energy credits generated by the
project during the first 15 years of operation,
and retire all renewable energy credits paid for
under this clause (3) and return at the end of the
delivery term all geothermal renewable energy
credits that were not paid for. Renewable energy
credits generated by the project thereafter shall
not be transferred under the renewable energy

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credit delivery contract with the counterparty
electric utility.
(4) For renewable energy contracts for any
type of community, shared, or similar geothermal
heating and cooling system that operates using a
subscription model and for which subscriptions are
a basis for contractual payments, subscription of
90% of total renewable energy credit volumes or
greater shall be deemed to be fully subscribed.
(5) Beginning with the long-term renewable
resources procurement plan covering the delivery
year beginning on June 1, 2030, the Agency may
propose a payment structure for Program contracts
upon a demonstration of qualification or need
under criteria established by the Agency that is
focused on supporting the small and emerging
businesses and the businesses that most acutely
face barriers to capital access. Successful
applicant firms shall have advanced capital
disbursed before renewable energy credits are
first generated. The maximum amount or percentage
of capital advanced shall be included in the
long-term renewable resources procurement plan,
and any amount actually advanced shall be designed
to overcome the barriers in access to capital that
are faced by an applicant through that applicant's

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demonstration of need. The amount or percentage of
advanced capital may vary by year, or inter-year,
by structure category, block, and other factors as
deemed applicable by the Agency and by an
applicant's demonstration of need. Contracts
featuring capital advanced prior to system
operation shall feature provisions to ensure both
the successful development of applicant projects
and the delivery of renewable energy credits for
the full term of the contract, including ongoing
collateral requirements and other provisions
deemed necessary by the Agency. The percentage or
amount of capital advanced prior to system
operation shall not increase the overall contract
value.
(6) Each contract shall include provisions to
ensure the delivery of the estimated quantity of
geothermal renewable energy credits, including a
requirement of performance assurance in an amount
deemed appropriate by the Agency.
(7) An obligated utility shall be the
counterparty to the contracts executed under this
subparagraph (S) that are approved by the
Commission. No contract shall be executed for an
amount that is less than one geothermal renewable
energy credit per year.

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(8) Nothing in this subparagraph (S) shall
require the utility to advance any payment or pay
any amounts that exceed the actual amount of
revenues anticipated to be collected by the
utility inclusive of eligible funds collected in
prior years and alternative compliance payments
for use by the utility.
(9) Contracts may be assignable, but only to
entities first deemed by the Agency to have met
Program terms and requirements applicable to
direct Program participation. In developing
contracts for the delivery of renewable energy
credits from geothermal heating and cooling
systems, the Agency may establish fees applicable
to each contract assignment.
(10) If, at any time, approved applications
for the Program exceed funds collected by the
electric utility or would cause the Agency to
exceed the limitation on the amount of renewable
energy resources that may be procured, then the
Agency may consider future uncommitted funds to be
reserved for these contracts on a first-come,
first-served basis.
(iv) In order to advance priority access to the
clean energy economy for businesses and workers from
communities that have been excluded from economic

10400SB3393ham003 - 347 - LRB104 17748 SPS 38499 a
opportunities in the energy sector, been subject to
disproportionate levels of pollution, and
disproportionately experienced negative public health
outcomes, the Agency shall apply its equity
accountability system and minimum equity standards
established under subsections (c-10), (c-15), (c-20),
(c-25), and (c-30) to geothermal heating and cooling
system renewable energy credit procurement and
programs and may include any proposed modifications to
the equity accountability system and minimum equity
standards that may be warranted with respect to
geothermal heating and cooling systems in its plan
submission to the Commission under Section 16-111.5 of
the Public Utilities Act.
(v) Projects shall be developed in compliance with
the prevailing wage and project labor agreement
requirements, as applicable, for renewable energy
projects in subparagraph (Q) of paragraph (1) of
subsection (c). Projects approved under this Program
are subject to the prevailing wage requirements
outlined in subitem (x) of item (1) of subparagraph
(Q) of paragraph (1) of this subsection (c). Renewable
energy credits for any single geothermal heating and
cooling project that is 142 tons or larger and is
procured under this Program after the effective date
of this amendatory Act of the 104th General Assembly

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shall only be eligible if the associated project was
built by general contractors who entered into a
project labor agreement prior to construction. The
project labor agreement shall be filed with the
Director in accordance with procedures established by
the Agency through its long-term renewable resources
procurement plan. The project labor agreement shall
provide the names, addresses, and occupations of the
owner of the plant and the individuals representing
the labor organization employees that participate in
the project labor agreement. The project labor
agreement shall also specify terms and conditions as
provided in this Act.
(vi) The Agency shall strive to minimize
administrative expenses in the implementation of the
Program. The Agency may use any existing program
administrator and any applicable subcontractors to
develop, administer, implement, operate, and evaluate
the Program.
(T) Renewable energy credits procured under Agency
procurements or programs for community solar projects with
more than 3 megawatts in nameplate capacity must be
procured from facilities built by general contractors
that, prior to construction, enter into a project labor
agreement, as defined by this Act, subject to the
following requirements and limitations:

10400SB3393ham003 - 349 - LRB104 17748 SPS 38499 a
(i) The project labor agreement shall be filed
with the Director in accordance with procedures
established by the Agency through its long-term
renewable resources procurement plan. Any information
submitted to the Agency under this item (i) shall be
considered commercially sensitive information.
(ii) At a minimum, the project labor agreement
must provide the names, addresses, and occupations of
the owner of the project and any individuals
representing the labor organization of the employees
participating in the project labor agreement
consistent with the Project Labor Agreements Act. The
project labor agreement must also meet the terms and
conditions, as set forth in this Act.
(iii) It is the intent of this Section to ensure
that economic development occurs across communities in
this State, that emerging businesses may grow, and
that there is improved access to the clean energy
economy by persons who have greater economic burdens
to success. The Agency shall take into consideration
the unique cost of compliance of this subparagraph (T)
that may be borne by equity eligible contractors and
shall include those costs when determining the price
of renewable energy credits in the Adjustable Block
program. The Agency shall consider costs associated
with compliance, including in the development,

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financing, or construction of projects. The Agency
shall periodically review the assumptions in these
costs and may adjust prices in compliance with
subparagraph (M) of this paragraph (1).
(2) (Blank).
(3) (Blank).
(4) The electric utility shall retire all renewable
energy credits used to comply with the standard.
(5) Beginning with the 2010 delivery year and ending
June 1, 2017, an electric utility subject to this
subsection (c) shall apply the lesser of the maximum
alternative compliance payment rate or the most recent
estimated alternative compliance payment rate for its
service territory for the corresponding compliance period,
established pursuant to subsection (d) of Section 16-115D
of the Public Utilities Act to its retail customers that
take service pursuant to the electric utility's hourly
pricing tariff or tariffs. The electric utility shall
retain all amounts collected as a result of the
application of the alternative compliance payment rate or
rates to such customers, and, beginning in 2011, the
utility shall include in the information provided under
item (1) of subsection (d) of Section 16-111.5 of the
Public Utilities Act the amounts collected under the
alternative compliance payment rate or rates for the prior
year ending May 31. Notwithstanding any limitation on the

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procurement of renewable energy resources imposed by item
(2) of this subsection (c), the Agency shall increase its
spending on the purchase of renewable energy resources to
be procured by the electric utility for the next plan year
by an amount equal to the amounts collected by the utility
under the alternative compliance payment rate or rates in
the prior year ending May 31.
(6) The electric utility shall be entitled to recover
all of its costs associated with the procurement of
renewable energy credits under plans approved under this
Section and Section 16-111.5 of the Public Utilities Act.
These costs shall include associated reasonable expenses
for implementing the procurement programs, including, but
not limited to, the costs of administering and evaluating
the Adjustable Block program and the Geothermal Homes and
Businesses Program, through an automatic adjustment clause
tariff in accordance with subsection (k) of Section 16-108
of the Public Utilities Act.
(7) Renewable energy credits procured from new
photovoltaic projects or new distributed renewable energy
generation devices under this Section after June 1, 2017
(the effective date of Public Act 99-906) must be procured
from devices installed by a qualified person in compliance
with the requirements of Section 16-128A of the Public
Utilities Act and any rules or regulations adopted
thereunder.

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In meeting the renewable energy requirements of this
subsection (c), to the extent feasible and consistent with
State and federal law, the renewable energy credit
procurements, Adjustable Block solar program, and
community renewable generation program shall provide
employment opportunities for all segments of the
population and workforce, including minority-owned and
female-owned business enterprises, and shall not,
consistent with State and federal law, discriminate based
on race or socioeconomic status.
(c-5) Procurement of renewable energy credits from new
renewable energy facilities installed at or adjacent to the
sites of electric generating facilities that burn or burned
coal as their primary fuel source.
(1) In addition to the procurement of renewable energy
credits pursuant to long-term renewable resources
procurement plans in accordance with subsection (c) of
this Section and Section 16-111.5 of the Public Utilities
Act, the Agency shall conduct procurement events in
accordance with this subsection (c-5) for the procurement
by electric utilities that served more than 300,000 retail
customers in this State as of January 1, 2019 of renewable
energy credits from new renewable energy facilities to be
installed at or adjacent to the sites of electric
generating facilities that, as of January 1, 2016, burned
coal as their primary fuel source and meet the other

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criteria specified in this subsection (c-5). For purposes
of this subsection (c-5), "new renewable energy facility"
means a new utility-scale solar project as defined in this
Section 1-75. The renewable energy credits procured
pursuant to this subsection (c-5) may be included or
counted for purposes of compliance with the amounts of
renewable energy credits required to be procured pursuant
to subsection (c) of this Section to the extent that there
are otherwise shortfalls in compliance with such
requirements. The procurement of renewable energy credits
by electric utilities pursuant to this subsection (c-5)
shall be funded solely by revenues collected from the Coal
to Solar and Energy Storage Initiative Charge provided for
in this subsection (c-5) and subsection (i-5) of Section
16-108 of the Public Utilities Act, shall not be funded by
revenues collected through any of the other funding
mechanisms provided for in subsection (c) of this Section,
and shall not be subject to the limitation imposed by
subsection (c) on charges to retail customers for costs to
procure renewable energy resources pursuant to subsection
(c), and shall not be subject to any other requirements or
limitations of subsection (c).
(2) The Agency shall conduct 2 procurement events to
select owners of electric generating facilities meeting
the eligibility criteria specified in this subsection
(c-5) to enter into long-term contracts to sell renewable

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energy credits to electric utilities serving more than
300,000 retail customers in this State as of January 1,
2019. The first procurement event shall be conducted no
later than March 31, 2022, unless the Agency elects to
delay it, until no later than May 1, 2022, due to its
overall volume of work, and shall be to select owners of
electric generating facilities located in this State and
south of federal Interstate Highway 80 that meet the
eligibility criteria specified in this subsection (c-5).
The second procurement event shall be conducted no sooner
than September 30, 2022 and no later than October 31, 2022
and shall be to select owners of electric generating
facilities located anywhere in this State that meet the
eligibility criteria specified in this subsection (c-5).
The Agency shall establish and announce a time period,
which shall begin no later than 30 days prior to the
scheduled date for the procurement event, during which
applicants may submit applications to be selected as
suppliers of renewable energy credits pursuant to this
subsection (c-5). The eligibility criteria for selection
as a supplier of renewable energy credits pursuant to this
subsection (c-5) shall be as follows:
(A) The applicant owns an electric generating
facility located in this State that: (i) as of January
1, 2016, burned coal as its primary fuel to generate
electricity; and (ii) has, or had prior to retirement,

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an electric generating capacity of at least 150
megawatts. The electric generating facility can be
either: (i) retired as of the date of the procurement
event; or (ii) still operating as of the date of the
procurement event.
(B) The applicant is not (i) an electric
cooperative as defined in Section 3-119 of the Public
Utilities Act, or (ii) an entity described in
subsection (b)(1) of Section 3-105 of the Public
Utilities Act, or an association or consortium of or
an entity owned by entities described in (i) or (ii);
and the coal-fueled electric generating facility was
at one time owned, in whole or in part, by a public
utility as defined in Section 3-105 of the Public
Utilities Act.
(C) If participating in the first procurement
event, the applicant proposes and commits to construct
and operate, at the site, and if necessary for
sufficient space on property adjacent to the existing
property, at which the electric generating facility
identified in paragraph (A) is located: (i) a new
renewable energy facility of at least 20 megawatts but
no more than 100 megawatts of electric generating
capacity, and (ii) an energy storage facility having a
storage capacity equal to at least 2 megawatts and at
most 10 megawatts. If participating in the second

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procurement event, the applicant proposes and commits
to construct and operate, at the site, and if
necessary for sufficient space on property adjacent to
the existing property, at which the electric
generating facility identified in paragraph (A) is
located: (i) a new renewable energy facility of at
least 5 megawatts but no more than 20 megawatts of
electric generating capacity, and (ii) an energy
storage facility having a storage capacity equal to at
least 0.5 megawatts and at most one megawatt.
(D) The applicant agrees that the new renewable
energy facility and the energy storage facility will
be constructed or installed by a qualified entity or
entities in compliance with the requirements of
subsection (g) of Section 16-128A of the Public
Utilities Act and any rules adopted thereunder.
(E) The applicant agrees that personnel operating
the new renewable energy facility and the energy
storage facility will have the requisite skills,
knowledge, training, experience, and competence, which
may be demonstrated by completion or current
participation and ultimate completion by employees of
an accredited or otherwise recognized apprenticeship
program for the employee's particular craft, trade, or
skill, including through training and education
courses and opportunities offered by the owner to

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employees of the coal-fueled electric generating
facility or by previous employment experience
performing the employee's particular work skill or
function.
(F) The applicant commits that not less than the
prevailing wage, as determined pursuant to the
Prevailing Wage Act, will be paid to the applicant's
employees engaged in construction activities
associated with the new renewable energy facility and
the new energy storage facility and to the employees
of applicant's contractors engaged in construction
activities associated with the new renewable energy
facility and the new energy storage facility, and
that, on or before the commercial operation date of
the new renewable energy facility, the applicant shall
file a report with the Agency certifying that the
requirements of this subparagraph (F) have been met.
(G) The applicant commits that if selected, it
will negotiate a project labor agreement for the
construction of the new renewable energy facility and
associated energy storage facility that includes
provisions requiring the parties to the agreement to
work together to establish diversity threshold
requirements and to ensure best efforts to meet
diversity targets, improve diversity at the applicable
job site, create diverse apprenticeship opportunities,

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and create opportunities to employ former coal-fired
power plant workers.
(H) The applicant commits to enter into a contract
or contracts for the applicable duration to provide
specified numbers of renewable energy credits each
year from the new renewable energy facility to
electric utilities that served more than 300,000
retail customers in this State as of January 1, 2019,
at a price of $30 per renewable energy credit. The
price per renewable energy credit shall be fixed at
$30 for the applicable duration and the renewable
energy credits shall not be indexed renewable energy
credits as provided for in item (v) of subparagraph
(G) of paragraph (1) of subsection (c) of Section 1-75
of this Act. The applicable duration of each contract
shall be 20 years, unless the applicant is physically
interconnected to the PJM Interconnection, LLC
transmission grid and had a generating capacity of at
least 1,200 megawatts as of January 1, 2021, in which
case the applicable duration of the contract shall be
15 years.
(I) The applicant's application is certified by an
officer of the applicant and by an officer of the
applicant's ultimate parent company, if any.
(3) An applicant may submit applications to contract
to supply renewable energy credits from more than one new

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renewable energy facility to be constructed at or adjacent
to one or more qualifying electric generating facilities
owned by the applicant. The Agency may select new
renewable energy facilities to be located at or adjacent
to the sites of more than one qualifying electric
generation facility owned by an applicant to contract with
electric utilities to supply renewable energy credits from
such facilities.
(4) The Agency shall assess fees to each applicant to
recover the Agency's costs incurred in receiving and
evaluating applications, conducting the procurement event,
developing contracts for sale, delivery and purchase of
renewable energy credits, and monitoring the
administration of such contracts, as provided for in this
subsection (c-5), including fees paid to a procurement
administrator retained by the Agency for one or more of
these purposes.
(5) The Agency shall select the applicants and the new
renewable energy facilities to contract with electric
utilities to supply renewable energy credits in accordance
with this subsection (c-5). In the first procurement
event, the Agency shall select applicants and new
renewable energy facilities to supply renewable energy
credits, at a price of $30 per renewable energy credit,
aggregating to no less than 400,000 renewable energy
credits per year for the applicable duration, assuming

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sufficient qualifying applications to supply, in the
aggregate, at least that amount of renewable energy
credits per year; and not more than 580,000 renewable
energy credits per year for the applicable duration. In
the second procurement event, the Agency shall select
applicants and new renewable energy facilities to supply
renewable energy credits, at a price of $30 per renewable
energy credit, aggregating to no more than 625,000
renewable energy credits per year less the amount of
renewable energy credits each year contracted for as a
result of the first procurement event, for the applicable
durations. The number of renewable energy credits to be
procured as specified in this paragraph (5) shall not be
reduced based on renewable energy credits procured in the
self-direct renewable energy credit compliance program
established pursuant to subparagraph (R) of paragraph (1)
of subsection (c) of Section 1-75.
(6) The obligation to purchase renewable energy
credits from the applicants and their new renewable energy
facilities selected by the Agency shall be allocated to
the electric utilities based on their respective
percentages of kilowatthours delivered to delivery
services customers to the aggregate kilowatthour
deliveries by the electric utilities to delivery services
customers for the year ended December 31, 2021. In order
to achieve these allocation percentages between or among

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

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

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contract shall provide for over-delivery and
under-delivery of renewable energy credits within
reasonable ranges during each 12-month period and penalty,
default, and enforcement provisions for failure of the
selling party to deliver renewable energy credits as
specified in the contract and to comply with the
requirements of this subsection (c-5). The standard form
contract shall specify that all renewable energy credits
delivered to the electric utility pursuant to the contract
shall be retired. The Agency shall make the proposed
contracts available for a reasonable period for comment by
potential applicants, and shall publish the final form
contract at least 30 days before the date of the first
procurement event.
(9) Coal to Solar and Energy Storage Initiative
Charge.
(A) By no later than July 1, 2022, each electric
utility that served more than 300,000 retail customers
in this State as of January 1, 2019 shall file a tariff
with the Commission for the billing and collection of
a Coal to Solar and Energy Storage Initiative Charge
in accordance with subsection (i-5) of Section 16-108
of the Public Utilities Act, with such tariff to be
effective, following review and approval or
modification by the Commission, beginning January 1,
2023. The tariff shall provide for the calculation and

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setting of the electric utility's Coal to Solar and
Energy Storage Initiative Charge to collect revenues
estimated to be sufficient, in the aggregate, (i) to
enable the electric utility to pay for the renewable
energy credits it has contracted to purchase in the
delivery year beginning June 1, 2023 and each delivery
year thereafter from new renewable energy facilities
located at the sites of qualifying electric generating
facilities, and (ii) to fund the grant payments to be
made in each delivery year by the Department of
Commerce and Economic Opportunity, or any successor
department or agency, which shall be referred to in
this subsection (c-5) as the Department, pursuant to
paragraph (10) of this subsection (c-5). The electric
utility's tariff shall provide for the billing and
collection of the Coal to Solar and Energy Storage
Initiative Charge on each kilowatthour of electricity
delivered to its delivery services customers within
its service territory and shall provide for an annual
reconciliation of revenues collected with actual
costs, in accordance with subsection (i-5) of Section
16-108 of the Public Utilities Act.
(B) Each electric utility shall remit on a monthly
basis to the State Treasurer, for deposit in the Coal
to Solar and Energy Storage Initiative Fund provided
for in this subsection (c-5), the electric utility's

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collections of the Coal to Solar and Energy Storage
Initiative Charge in the amount estimated to be needed
by the Department for grant payments pursuant to grant
contracts entered into by the Department pursuant to
paragraph (10) of this subsection (c-5).
(10) Coal to Solar and Energy Storage Initiative Fund.
(A) The Coal to Solar and Energy Storage
Initiative Fund is established as a special fund in
the State treasury. The Coal to Solar and Energy
Storage Initiative Fund is authorized to receive, by
statutory deposit, that portion specified in item (B)
of paragraph (9) of this subsection (c-5) of moneys
collected by electric utilities through imposition of
the Coal to Solar and Energy Storage Initiative Charge
required by this subsection (c-5). The Coal to Solar
and Energy Storage Initiative Fund shall be
administered by the Department to provide grants to
support the installation and operation of energy
storage facilities at the sites of qualifying electric
generating facilities meeting the criteria specified
in this paragraph (10).
(B) The Coal to Solar and Energy Storage
Initiative Fund shall not be subject to sweeps,
administrative charges, or chargebacks, including, but
not limited to, those authorized under Section 8h of
the State Finance Act, that would in any way result in

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the transfer of those funds from the Coal to Solar and
Energy Storage Initiative Fund to any other fund of
this State or in having any such funds utilized for any
purpose other than the express purposes set forth in
this paragraph (10).
(C) The Department shall utilize up to
$280,500,000 in the Coal to Solar and Energy Storage
Initiative Fund for grants, assuming sufficient
qualifying applicants, to support installation of
energy storage facilities at the sites of up to 3
qualifying electric generating facilities located in
the Midcontinent Independent System Operator, Inc.,
region in Illinois and the sites of up to 2 qualifying
electric generating facilities located in the PJM
Interconnection, LLC region in Illinois that meet the
criteria set forth in this subparagraph (C). The
criteria for receipt of a grant pursuant to this
subparagraph (C) are as follows:
(1) the electric generating facility at the
site has, or had prior to retirement, an electric
generating capacity of at least 150 megawatts;
(2) the electric generating facility burns (or
burned prior to retirement) coal as its primary
source of fuel;
(3) if the electric generating facility is
retired, it was retired subsequent to January 1,

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2016;
(4) the owner of the electric generating
facility has not been selected by the Agency
pursuant to this subsection (c-5) of this Section
to enter into a contract to sell renewable energy
credits to one or more electric utilities from a
new renewable energy facility located or to be
located at or adjacent to the site at which the
electric generating facility is located;
(5) the electric generating facility located
at the site was at one time owned, in whole or in
part, by a public utility as defined in Section
3-105 of the Public Utilities Act;
(6) the electric generating facility at the
site is not owned by (i) an electric cooperative
as defined in Section 3-119 of the Public
Utilities Act, or (ii) an entity described in
subsection (b)(1) of Section 3-105 of the Public
Utilities Act, or an association or consortium of
or an entity owned by entities described in items
(i) or (ii);
(7) the proposed energy storage facility at
the site will have energy storage capacity of at
least 37 megawatts;
(8) the owner commits to place the energy
storage facility into commercial operation on

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either June 1, 2023, June 1, 2024, or June 1, 2025,
with such date subject to adjustment as needed due
to any delays in completing the grant contracting
process, in finalizing interconnection agreements
and in installing interconnection facilities, and
in obtaining necessary governmental permits and
approvals;
(9) the owner agrees that the new energy
storage facility will be constructed or installed
by a qualified entity or entities consistent with
the requirements of subsection (g) of Section
16-128A of the Public Utilities Act and any rules
adopted under that Section;
(10) the owner agrees that personnel operating
the energy storage facility will have the
requisite skills, knowledge, training, experience,
and competence, which may be demonstrated by
completion or current participation and ultimate
completion by employees of an accredited or
otherwise recognized apprenticeship program for
the employee's particular craft, trade, or skill,
including through training and education courses
and opportunities offered by the owner to
employees of the coal-fueled electric generating
facility or by previous employment experience
performing the employee's particular work skill or

10400SB3393ham003 - 369 - LRB104 17748 SPS 38499 a
function;
(11) the owner commits that not less than the
prevailing wage, as determined pursuant to the
Prevailing Wage Act, will be paid to the owner's
employees engaged in construction activities
associated with the new energy storage facility
and to the employees of the owner's contractors
engaged in construction activities associated with
the new energy storage facility, and that, on or
before the commercial operation date of the new
energy storage facility, the owner shall file a
report with the Department certifying that the
requirements of this subparagraph (11) have been
met; and
(12) the owner commits that if selected to
receive a grant, it will negotiate a project labor
agreement for the construction of the new energy
storage facility that includes provisions
requiring the parties to the agreement to work
together to establish diversity threshold
requirements and to ensure best efforts to meet
diversity targets, improve diversity at the
applicable job site, create diverse apprenticeship
opportunities, and create opportunities to employ
former coal-fired power plant workers.
The Department shall accept applications for this

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grant program until March 31, 2022 and shall announce
the award of grants no later than June 1, 2022. The
Department shall make the grant payments to a
recipient in equal annual amounts for 10 years
following the date the energy storage facility is
placed into commercial operation. The annual grant
payments to a qualifying energy storage facility shall
be $110,000 per megawatt of energy storage capacity,
with total annual grant payments pursuant to this
subparagraph (C) for qualifying energy storage
facilities not to exceed $28,050,000 in any year.
(D) Grants of funding for energy storage
facilities pursuant to subparagraph (C) of this
paragraph (10), from the Coal to Solar and Energy
Storage Initiative Fund, shall be memorialized in
grant contracts between the Department and the
recipient. The grant contracts shall specify the date
or dates in each year on which the annual grant
payments shall be paid.
(E) All disbursements from the Coal to Solar and
Energy Storage Initiative Fund shall be made only upon
warrants of the Comptroller drawn upon the Treasurer
as custodian of the Fund upon vouchers signed by the
Director of the Department or by the person or persons
designated by the Director of the Department for that
purpose. The Comptroller is authorized to draw the

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warrants upon vouchers so signed. The Treasurer shall
accept all written warrants so signed and shall be
released from liability for all payments made on those
warrants.
(11) Diversity, equity, and inclusion plans.
(A) Each applicant selected in a procurement event
to contract to supply renewable energy credits in
accordance with this subsection (c-5) and each owner
selected by the Department to receive a grant or
grants to support the construction and operation of a
new energy storage facility or facilities in
accordance with this subsection (c-5) shall, within 60
days following the Commission's approval of the
applicant to contract to supply renewable energy
credits or within 60 days following execution of a
grant contract with the Department, as applicable,
submit to the Commission a diversity, equity, and
inclusion plan setting forth the applicant's or
owner's numeric goals for the diversity composition of
its supplier entities for the new renewable energy
facility or new energy storage facility, as
applicable, which shall be referred to for purposes of
this paragraph (11) as the project, and the
applicant's or owner's action plan and schedule for
achieving those goals.
(B) For purposes of this paragraph (11), diversity

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composition shall be based on the percentage, which
shall be a minimum of 25%, of eligible expenditures
for contract awards for materials and services (which
shall be defined in the plan) to business enterprises
owned by minority persons, women, or persons with
disabilities as defined in Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act, to LGBTQ business enterprises, to
veteran-owned business enterprises, and to business
enterprises located in environmental justice
communities. The diversity composition goals of the
plan may include eligible expenditures in areas for
vendor or supplier opportunities in addition to
development and construction of the project, and may
exclude from eligible expenditures materials and
services with limited market availability, limited
production and availability from suppliers in the
United States, such as solar panels and storage
batteries, and material and services that are subject
to critical energy infrastructure or cybersecurity
requirements or restrictions. The plan may provide
that the diversity composition goals may be met
through Tier 1 Direct or Tier 2 subcontracting
expenditures or a combination thereof for the project.
(C) The plan shall provide for, but not be limited
to: (i) internal initiatives, including multi-tier

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initiatives, by the applicant or owner, or by its
engineering, procurement and construction contractor
if one is used for the project, which for purposes of
this paragraph (11) shall be referred to as the EPC
contractor, to enable diverse businesses to be
considered fairly for selection to provide materials
and services; (ii) requirements for the applicant or
owner or its EPC contractor to proactively solicit and
utilize diverse businesses to provide materials and
services; and (iii) requirements for the applicant or
owner or its EPC contractor to hire a diverse
workforce for the project. The plan shall include a
description of the applicant's or owner's diversity
recruiting efforts both for the project and for other
areas of the applicant's or owner's business
operations. The plan shall provide for the imposition
of financial penalties on the applicant's or owner's
EPC contractor for failure to exercise best efforts to
comply with and execute the EPC contractor's diversity
obligations under the plan. The plan may provide for
the applicant or owner to set aside a portion of the
work on the project to serve as an incubation program
for qualified businesses, as specified in the plan,
owned by minority persons, women, persons with
disabilities, LGBTQ persons, and veterans, and
businesses located in environmental justice

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communities, seeking to enter the renewable energy
industry.
(D) The applicant or owner may submit a revised or
updated plan to the Commission from time to time as
circumstances warrant. The applicant or owner shall
file annual reports with the Commission detailing the
applicant's or owner's progress in implementing its
plan and achieving its goals and any modifications the
applicant or owner has made to its plan to better
achieve its diversity, equity and inclusion goals. The
applicant or owner shall file a final report on the
fifth June 1 following the commercial operation date
of the new renewable energy resource or new energy
storage facility, but the applicant or owner shall
thereafter continue to be subject to applicable
reporting requirements of Section 5-117 of the Public
Utilities Act.
(c-10) Equity accountability system. It is the purpose of
this subsection (c-10) to create an equity accountability
system, which includes the minimum equity standards for all
renewable energy procurements, the equity category of the
Adjustable Block Program, and the equity prioritization for
noncompetitive procurements, that is successful in advancing
priority access to the clean energy economy for businesses and
workers from communities that have been excluded from economic
opportunities in the energy sector, have been subject to

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disproportionate levels of pollution, and have
disproportionately experienced negative public health
outcomes. Further, it is the purpose of this subsection to
ensure that this equity accountability system is successful in
advancing equity across Illinois by providing access to the
clean energy economy for businesses and workers from
communities that have been historically excluded from economic
opportunities in the energy sector, have been subject to
disproportionate levels of pollution, and have
disproportionately experienced negative public health
outcomes.
(1) Minimum equity standards. The Agency shall create
programs with the purpose of increasing access to and
development of equity eligible contractors, who are prime
contractors and subcontractors, across all of the programs
it manages. All applications for renewable energy credit
procurements shall comply with specific minimum equity
commitments. Starting in the delivery year immediately
following the next long-term renewable resources
procurement plan, at least 10% of the project workforce
for each entity participating in a procurement program
outlined in this subsection (c-10) must be done by equity
eligible persons or equity eligible contractors. The
Agency shall increase the minimum percentage each delivery
year thereafter by increments that ensure a statewide
average of 30% of the project workforce for each entity

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participating in a procurement program is done by equity
eligible persons or equity eligible contractors by 2030.
The Agency shall propose a schedule of percentage
increases to the minimum equity standards in its draft
revised renewable energy resources procurement plan
submitted to the Commission for approval pursuant to
paragraph (5) of subsection (b) of Section 16-111.5 of the
Public Utilities Act. In determining these annual
increases, the Agency shall have the discretion to
establish different minimum equity standards for different
types of procurements and different regions of the State
if the Agency finds that doing so will further the
purposes of this subsection (c-10). The proposed schedule
of annual increases shall be revisited and updated on an
annual basis. Revisions shall be developed with
stakeholder input, including from equity eligible persons,
equity eligible contractors, clean energy industry
representatives, and community-based organizations that
work with such persons and contractors.
(A) At the start of each delivery year, the Agency
shall require a compliance plan from each entity
participating in a procurement program of subsection
(c) of this Section, and entities opting to comply
with the minimum equity standard through the Illinois
Solar for All Program under Section 1-56 of this Act,
that demonstrates how they will achieve compliance

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with the minimum equity standard percentage for work
completed in that delivery year. If an entity applies
for its approved vendor or designee status between
delivery years, the Agency shall require a compliance
plan at the time of application.
(B) Halfway through each delivery year, the Agency
shall require each entity participating in a
procurement program to confirm that it will achieve
compliance in that delivery year, when applicable. The
Agency may offer corrective action plans to entities
that are not on track to achieve compliance.
(C) At the end of each delivery year, each entity
participating and completing work in that delivery
year in a procurement program of subsection (c) shall
submit a report to the Agency that demonstrates how it
achieved compliance with the minimum equity standards
percentage for that delivery year.
(D) The Agency shall prohibit participation in
procurement programs by an approved vendor or
designee, as applicable, or entities with which an
approved vendor or designee, as applicable, shares a
common parent company if an approved vendor or
designee, as applicable, failed to meet the minimum
equity standards for the prior delivery year. Waivers
approved for lack of equity eligible persons or equity
eligible contractors in a geographic area of a project

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shall not count against the approved vendor or
designee. The Agency shall offer a corrective action
plan for any such entities to assist them in obtaining
compliance and shall allow continued access to
procurement programs upon an approved vendor or
designee demonstrating compliance.
(E) The Agency shall pursue efficiencies achieved
by combining with other approved vendor or designee
reporting.
(2) Equity accountability system within the Adjustable
Block program. The equity category described in item (vi)
of subparagraph (K) of subsection (c) is only available to
applicants that are equity eligible contractors.
(3) Equity accountability system within competitive
procurements. Through its long-term renewable resources
procurement plan, the Agency shall develop requirements
for ensuring that competitive procurement processes,
including utility-scale solar, utility-scale wind, and
brownfield site photovoltaic projects, advance the equity
goals of this subsection (c-10). Subject to Commission
approval, the Agency shall develop bid application
requirements and a bid evaluation methodology for ensuring
that utilization of equity eligible contractors, whether
as bidders or as participants on project development, is
optimized, including requiring that winning or successful
applicants for utility-scale projects are or will partner

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with equity eligible contractors and giving preference to
bids through which a higher portion of contract value
flows to equity eligible contractors. To the extent
practicable, entities participating in competitive
procurements shall also be required to meet all the equity
accountability requirements for approved vendors and their
designees under this subsection (c-10). In developing
these requirements, the Agency shall also consider whether
equity goals can be further advanced through additional
measures.
(4) In the first revision to the long-term renewable
energy resources procurement plan and each revision
thereafter, the Agency shall include the following:
(A) The current status and number of equity
eligible contractors listed in the Energy Workforce
Equity Database designed in subsection (c-25),
including the number of equity eligible contractors
with current certifications as issued by the Agency.
(B) A mechanism for measuring, tracking, and
reporting project workforce at the approved vendor or
designee level, as applicable, which shall include a
measurement methodology and records to be made
available for audit by the Agency or the Program
Administrator.
(C) A program for approved vendors, designees,
eligible persons, and equity eligible contractors to

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receive trainings, guidance, and other support from
the Agency or its designee regarding the equity
category outlined in item (vi) of subparagraph (K) of
paragraph (1) of subsection (c) and in meeting the
minimum equity standards of this subsection (c-10).
(D) A process for certifying equity eligible
contractors and equity eligible persons. The
certification process shall coordinate with the Energy
Workforce Equity Database set forth in subsection
(c-25).
(E) An application for waiver of the minimum
equity standards of this subsection, which the Agency
shall have the discretion to grant in rare
circumstances. The Agency may grant such a waiver
where the applicant provides evidence of significant
efforts toward meeting the minimum equity commitment,
including: use of the Energy Workforce Equity
Database; efforts to hire or contract with entities
that hire eligible persons; and efforts to establish
contracting relationships with eligible contractors.
The Agency shall support applicants in understanding
the Energy Workforce Equity Database and other
resources for pursuing compliance of the minimum
equity standards. Waivers shall be project-specific,
unless the Agency deems it necessary to grant a waiver
across a portfolio of projects, and in effect for no

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longer than one year. Any waiver extension or
subsequent waiver request from an applicant shall be
subject to the requirements of this Section and shall
specify efforts made to reach compliance. When
considering whether to grant a waiver, and to what
extent, the Agency shall consider the degree to which
similarly situated applicants have been able to meet
these minimum equity commitments. For repeated waiver
requests for specific lack of eligible persons or
eligible contractors available, the Agency shall make
recommendations to target recruitment to add such
eligible persons or eligible contractors to the
database.
(5) The Agency shall collect information about work on
projects or portfolios of projects subject to these
minimum equity standards to ensure compliance with this
subsection (c-10). Reporting in furtherance of this
requirement may be combined with other annual reporting
requirements. Such reporting shall include proof of
certification of each equity eligible contractor or equity
eligible person during the applicable time period.
As part of the reporting requirement under this
subparagraph (5), the Agency shall collect and report
information about the use of equity eligible contractors
and equity eligible persons, as well as Minimum Equity
Standard compliance and waiver usage on the Adjustable

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Block program and utility-scale projects subject to
project labor agreements. The Agency shall note any
instances of the projects being unable to meet or
requiring a waiver to meet Minimum Equity Standard
requirements and the location of those projects.
On an annual basis, the Agency shall submit a written
summary of its findings on an annual basis to the General
Assembly and the Governor and shall make the report and
summary available on the Agency's website.
(6) The Agency shall keep confidential all information
and communication that provides private or personal
information.
(7) Modifications to the equity accountability system.
As part of the update of the long-term renewable resources
procurement plan to be initiated in 2023, or sooner if the
Agency deems necessary, the Agency shall determine the
extent to which the equity accountability system described
in this subsection (c-10) has advanced the goals of this
amendatory Act of the 102nd General Assembly, including
through the inclusion of equity eligible persons and
equity eligible contractors in renewable energy credit
projects. If the Agency finds that the equity
accountability system has failed to meet those goals to
its fullest potential, the Agency may revise the following
criteria for future Agency procurements: (A) the
percentage of project workforce, or other appropriate

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workforce measure, certified as equity eligible persons or
equity eligible contractors; (B) definitions for equity
investment eligible persons and equity investment eligible
community; and (C) such other modifications necessary to
advance the goals of this amendatory Act of the 102nd
General Assembly effectively. Such revised criteria may
also establish distinct equity accountability systems for
different types of procurements or different regions of
the State if the Agency finds that doing so will further
the purposes of such programs. Revisions shall be
developed with stakeholder input, including from equity
eligible persons, equity eligible contractors, and
community-based organizations that work with such persons
and contractors.
(c-15) Racial discrimination elimination powers and
process.
(1) Purpose. It is the purpose of this subsection to
empower the Agency and other State actors to remedy racial
discrimination in Illinois' clean energy economy as
effectively and expediently as possible, including through
the use of race-conscious remedies, such as race-conscious
contracting and hiring goals, as consistent with State and
federal law.
(2) Racial disparity and discrimination review
process.
(A) Within one year after awarding contracts using

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

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

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entity awarded contracts under any Agency-administered
program.
(3) Required information to be collected. The Agency
shall collect the following information from applicants
and program participants where applicable:
(A) demographic information, including racial or
ethnic identity for real persons employed, contracted,
or subcontracted through the program and owners of
businesses or entities that apply to receive renewable
energy credits from the Agency;
(B) geographic location of the residency of real
persons employed, contracted, or subcontracted through
the program and geographic location of the
headquarters of the business or entity that applies to
receive renewable energy credits from the Agency; and
(C) any other information the Agency determines is
necessary for the purpose of achieving the purpose of
this subsection.
(4) Publication of collected information. The Agency
shall publish, at least annually, information on the
demographics of program participants on an aggregate
basis.
(5) Nothing in this subsection shall be interpreted to
limit the authority of the Agency, or other agency or
department of the State, to require or collect demographic
information from applicants of other State programs.

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(c-25) Energy Workforce Equity Database.
(1) The Agency, in consultation with the Department of
Commerce and Economic Opportunity, shall create an Energy
Workforce Equity Database, and may contract with a third
party to do so ("database program administrator"). If the
Department decides to contract with a third party, that
third party shall be exempt from the requirements of
Section 20-10 of the Illinois Procurement Code. The Energy
Workforce Equity Database shall be a searchable database
of suppliers, vendors, and subcontractors for clean energy
industries that is:
(A) publicly accessible;
(B) easy for people to find and use;
(C) organized by company specialty or field;
(D) region-specific; and
(E) populated with information including, but not
limited to, contacts for suppliers, vendors, or
subcontractors who are minority and women-owned
business enterprise certified or who participate or
have participated in any of the programs described in
this Act.
(2) The Agency shall create an easily accessible,
public facing online tool using the database information
that includes, at a minimum, the following:
(A) a map of environmental justice and equity
investment eligible communities;

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(B) job postings and recruiting opportunities;
(C) a means by which recruiting clean energy
companies can find and interact with current or former
participants of clean energy workforce training
programs;
(D) information on workforce training service
providers and training opportunities available to
prospective workers;
(E) renewable energy company diversity reporting;
(F) a list of equity eligible contractors with
their contact information, types of work performed,
and locations worked in;
(G) reporting on outcomes of the programs
described in the workforce programs of the Energy
Transition Act, including information such as, but not
limited to, retention rate, graduation rate, and
placement rates of trainees; and
(H) information about the Jobs and Environmental
Justice Grant Program, the Clean Energy Jobs and
Justice Fund, and other sources of capital.
(3) The Agency shall ensure the database is regularly
updated to ensure information is current and shall
coordinate with the Department of Commerce and Economic
Opportunity to ensure that it includes information on
individuals and entities that are or have participated in
the Clean Jobs Workforce Network Program, Clean Energy

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Contractor Incubator Program, Returning Residents Clean
Jobs Training Program, or Clean Energy Primes Contractor
Accelerator Program.
(c-30) Enforcement of minimum equity standards. All
entities seeking renewable energy credits must submit an
annual report to demonstrate compliance with each of the
equity commitments required under subsection (c-10). If the
Agency concludes the entity has not met or maintained its
minimum equity standards required under the applicable
subparagraphs under subsection (c-10), the Agency shall deny
the entity's ability to participate in procurement programs in
subsection (c), including by withholding approved vendor or
designee status. The Agency may require the entity to enter
into a corrective action plan. An entity that is not
recertified for failing to meet required equity actions in
subparagraph (c-10) may reapply once they have a corrective
action plan and achieve compliance with the minimum equity
standards.
(d) Clean coal portfolio standard.
(1) The procurement plans shall include electricity
generated using clean coal. Each utility shall enter into
one or more sourcing agreements with the initial clean
coal facility, as provided in paragraph (3) of this
subsection (d), covering electricity generated by the
initial clean coal facility representing at least 5% of
each utility's total supply to serve the load of eligible

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retail customers in 2015 and each year thereafter, as
described in paragraph (3) of this subsection (d), subject
to the limits specified in paragraph (2) of this
subsection (d). It is the goal of the State that by January
1, 2025, 25% of the electricity used in the State shall be
generated by cost-effective clean coal facilities. For
purposes of this subsection (d), "cost-effective" means
that the expenditures pursuant to such sourcing agreements
do not cause the limit stated in paragraph (2) of this
subsection (d) to be exceeded and do not exceed cost-based
benchmarks, which shall be developed to assess all
expenditures pursuant to such sourcing agreements covering
electricity generated by clean coal facilities, other than
the initial clean coal facility, by the procurement
administrator, in consultation with the Commission staff,
Agency staff, and the procurement monitor and shall be
subject to Commission review and approval.
A utility party to a sourcing agreement shall
immediately retire any emission credits that it receives
in connection with the electricity covered by such
agreement.
Utilities shall maintain adequate records documenting
the purchases under the sourcing agreement to comply with
this subsection (d) and shall file an accounting with the
load forecast that must be filed with the Agency by July 15
of each year, in accordance with subsection (d) of Section

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16-111.5 of the Public Utilities Act.
A utility shall be deemed to have complied with the
clean coal portfolio standard specified in this subsection
(d) if the utility enters into a sourcing agreement as
required by this subsection (d).
(2) For purposes of this subsection (d), the required
execution of sourcing agreements with the initial clean
coal facility for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) supplied by the electric utility to
eligible retail customers in the planning year ending
immediately prior to the agreement's execution. For
purposes of this subsection (d), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For
purposes of this subsection (d), the total amount paid for
electric service includes without limitation amounts paid
for supply, transmission, distribution, surcharges and
add-on taxes.
Notwithstanding the requirements of this subsection
(d), the total amount paid under sourcing agreements with
clean coal facilities pursuant to the procurement plan for
any given year shall be reduced by an amount necessary to
limit the annual estimated average net increase due to the
costs of these resources included in the amounts paid by
eligible retail customers in connection with electric

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service to:
(A) in 2010, no more than 0.5% of the amount paid
per kilowatthour by those customers during the year
ending May 31, 2009;
(B) in 2011, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2010 or 1% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009;
(C) in 2012, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2011 or 1.5% of the
amount paid per kilowatthour by those customers during
the year ending May 31, 2009;
(D) in 2013, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2012 or 2% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009; and
(E) thereafter, the total amount paid under
sourcing agreements with clean coal facilities
pursuant to the procurement plan for any single year
shall be reduced by an amount necessary to limit the
estimated average net increase due to the cost of
these resources included in the amounts paid by
eligible retail customers in connection with electric

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service to no more than the greater of (i) 2.015% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2009 or (ii) the
incremental amount per kilowatthour paid for these
resources in 2013. These requirements may be altered
only as provided by statute.
No later than June 30, 2015, the Commission shall
review the limitation on the total amount paid under
sourcing agreements, if any, with clean coal facilities
pursuant to this subsection (d) and report to the General
Assembly its findings as to whether that limitation unduly
constrains the amount of electricity generated by
cost-effective clean coal facilities that is covered by
sourcing agreements.
(3) Initial clean coal facility. In order to promote
development of clean coal facilities in Illinois, each
electric utility subject to this Section shall execute a
sourcing agreement to source electricity from a proposed
clean coal facility in Illinois (the "initial clean coal
facility") that will have a nameplate capacity of at least
500 MW when commercial operation commences, that has a
final Clean Air Act permit on June 1, 2009 (the effective
date of Public Act 95-1027), and that will meet the
definition of clean coal facility in Section 1-10 of this
Act when commercial operation commences. The sourcing
agreements with this initial clean coal facility shall be

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subject to both approval of the initial clean coal
facility by the General Assembly and satisfaction of the
requirements of paragraph (4) of this subsection (d) and
shall be executed within 90 days after any such approval
by the General Assembly. The Agency and the Commission
shall have authority to inspect all books and records
associated with the initial clean coal facility during the
term of such a sourcing agreement. A utility's sourcing
agreement for electricity produced by the initial clean
coal facility shall include:
(A) a formula contractual price (the "contract
price") approved pursuant to paragraph (4) of this
subsection (d), which shall:
(i) be determined using a cost of service
methodology employing either a level or deferred
capital recovery component, based on a capital
structure consisting of 45% equity and 55% debt,
and a return on equity as may be approved by the
Federal Energy Regulatory Commission, which in any
case may not exceed the lower of 11.5% or the rate
of return approved by the General Assembly
pursuant to paragraph (4) of this subsection (d);
and
(ii) provide that all miscellaneous net
revenue, including but not limited to net revenue
from the sale of emission allowances, if any,

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substitute natural gas, if any, grants or other
support provided by the State of Illinois or the
United States Government, firm transmission
rights, if any, by-products produced by the
facility, energy or capacity derived from the
facility and not covered by a sourcing agreement
pursuant to paragraph (3) of this subsection (d)
or item (5) of subsection (d) of Section 16-115 of
the Public Utilities Act, whether generated from
the synthesis gas derived from coal, from SNG, or
from natural gas, shall be credited against the
revenue requirement for this initial clean coal
facility;
(B) power purchase provisions, which shall:
(i) provide that the utility party to such
sourcing agreement shall pay the contract price
for electricity delivered under such sourcing
agreement;
(ii) require delivery of electricity to the
regional transmission organization market of the
utility that is party to such sourcing agreement;
(iii) require the utility party to such
sourcing agreement to buy from the initial clean
coal facility in each hour an amount of energy
equal to all clean coal energy made available from
the initial clean coal facility during such hour

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

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during such hour times a fraction, the numerator
of which is such utility's retail market sales of
electricity (expressed in kilowatthours sold) in
the utility's service territory in the State
during the prior calendar month and the
denominator of which is the total retail market
sales of electricity (expressed in kilowatthours
sold) in the State by utilities during such prior
month and the sales of electricity (expressed in
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this
subsection (d) and paragraph (5) of subsection (d)
of Section 16-115 of the Public Utilities Act,
provided that the amount paid by the utility in
any year will be limited by paragraph (2) of this
subsection (d);
(ii) provide that the utility's payment
obligation in respect of the quantity of
electricity determined pursuant to the preceding
clause (i) shall be limited to an amount equal to
(1) the difference between the contract price
determined pursuant to subparagraph (A) of
paragraph (3) of this subsection (d) and the
day-ahead price for electricity delivered to the
regional transmission organization market of the

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utility that is party to such sourcing agreement
(or any successor delivery point at which such
utility's supply obligations are financially
settled on an hourly basis) (the "reference
price") on the day preceding the day on which the
electricity is delivered to the initial clean coal
facility busbar, multiplied by (2) the quantity of
electricity determined pursuant to the preceding
clause (i); and
(iii) not require the utility to take physical
delivery of the electricity produced by the
facility;
(D) general provisions, which shall:
(i) specify a term of no more than 30 years,
commencing on the commercial operation date of the
facility;
(ii) provide that utilities shall maintain
adequate records documenting purchases under the
sourcing agreements entered into to comply with
this subsection (d) and shall file an accounting
with the load forecast that must be filed with the
Agency by July 15 of each year, in accordance with
subsection (d) of Section 16-111.5 of the Public
Utilities Act;
(iii) provide that all costs associated with
the initial clean coal facility will be

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periodically reported to the Federal Energy
Regulatory Commission and to purchasers in
accordance with applicable laws governing
cost-based wholesale power contracts;
(iv) permit the Illinois Power Agency to
assume ownership of the initial clean coal
facility, without monetary consideration and
otherwise on reasonable terms acceptable to the
Agency, if the Agency so requests no less than 3
years prior to the end of the stated contract
term;
(v) require the owner of the initial clean
coal facility to provide documentation to the
Commission each year, starting in the facility's
first year of commercial operation, accurately
reporting the quantity of carbon emissions from
the facility that have been captured and
sequestered and report any quantities of carbon
released from the site or sites at which carbon
emissions were sequestered in prior years, based
on continuous monitoring of such sites. If, in any
year after the first year of commercial operation,
the owner of the facility fails to demonstrate
that the initial clean coal facility captured and
sequestered at least 50% of the total carbon
emissions that the facility would otherwise emit

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or that sequestration of emissions from prior
years has failed, resulting in the release of
carbon dioxide into the atmosphere, the owner of
the facility must offset excess emissions. Any
such carbon offsets must be permanent, additional,
verifiable, real, located within the State of
Illinois, and legally and practicably enforceable.
The cost of such offsets for the facility that are
not recoverable shall not exceed $15 million in
any given year. No costs of any such purchases of
carbon offsets may be recovered from a utility or
its customers. All carbon offsets purchased for
this purpose and any carbon emission credits
associated with sequestration of carbon from the
facility must be permanently retired. The initial
clean coal facility shall not forfeit its
designation as a clean coal facility if the
facility fails to fully comply with the applicable
carbon sequestration requirements in any given
year, provided the requisite offsets are
purchased. However, the Attorney General, on
behalf of the People of the State of Illinois, may
specifically enforce the facility's sequestration
requirement and the other terms of this contract
provision. Compliance with the sequestration
requirements and offset purchase requirements

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specified in paragraph (3) of this subsection (d)
shall be reviewed annually by an independent
expert retained by the owner of the initial clean
coal facility, with the advance written approval
of the Attorney General. The Commission may, in
the course of the review specified in item (vii),
reduce the allowable return on equity for the
facility if the facility willfully fails to comply
with the carbon capture and sequestration
requirements set forth in this item (v);
(vi) include limits on, and accordingly
provide for modification of, the amount the
utility is required to source under the sourcing
agreement consistent with paragraph (2) of this
subsection (d);
(vii) require Commission review: (1) to
determine the justness, reasonableness, and
prudence of the inputs to the formula referenced
in subparagraphs (A)(i) through (A)(iii) of
paragraph (3) of this subsection (d), prior to an
adjustment in those inputs including, without
limitation, the capital structure and return on
equity, fuel costs, and other operations and
maintenance costs and (2) to approve the costs to
be passed through to customers under the sourcing
agreement by which the utility satisfies its

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statutory obligations. Commission review shall
occur no less than every 3 years, regardless of
whether any adjustments have been proposed, and
shall be completed within 9 months;
(viii) limit the utility's obligation to such
amount as the utility is allowed to recover
through tariffs filed with the Commission,
provided that neither the clean coal facility nor
the utility waives any right to assert federal
pre-emption or any other argument in response to a
purported disallowance of recovery costs;
(ix) limit the utility's or alternative retail
electric supplier's obligation to incur any
liability until such time as the facility is in
commercial operation and generating power and
energy and such power and energy is being
delivered to the facility busbar;
(x) provide that the owner or owners of the
initial clean coal facility, which is the
counterparty to such sourcing agreement, shall
have the right from time to time to elect whether
the obligations of the utility party thereto shall
be governed by the power purchase provisions or
the contract for differences provisions;
(xi) append documentation showing that the
formula rate and contract, insofar as they relate

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to the power purchase provisions, have been
approved by the Federal Energy Regulatory
Commission pursuant to Section 205 of the Federal
Power Act;
(xii) provide that any changes to the terms of
the contract, insofar as such changes relate to
the power purchase provisions, are subject to
review under the public interest standard applied
by the Federal Energy Regulatory Commission
pursuant to Sections 205 and 206 of the Federal
Power Act; and
(xiii) conform with customary lender
requirements in power purchase agreements used as
the basis for financing non-utility generators.
(4) Effective date of sourcing agreements with the
initial clean coal facility. Any proposed sourcing
agreement with the initial clean coal facility shall not
become effective unless the following reports are prepared
and submitted and authorizations and approvals obtained:
(i) Facility cost report. The owner of the initial
clean coal facility shall submit to the Commission,
the Agency, and the General Assembly a front-end
engineering and design study, a facility cost report,
method of financing (including but not limited to
structure and associated costs), and an operating and
maintenance cost quote for the facility (collectively

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"facility cost report"), which shall be prepared in
accordance with the requirements of this paragraph (4)
of subsection (d) of this Section, and shall provide
the Commission and the Agency access to the work
papers, relied upon documents, and any other backup
documentation related to the facility cost report.
(ii) Commission report. Within 6 months following
receipt of the facility cost report, the Commission,
in consultation with the Agency, shall submit a report
to the General Assembly setting forth its analysis of
the facility cost report. Such report shall include,
but not be limited to, a comparison of the costs
associated with electricity generated by the initial
clean coal facility to the costs associated with
electricity generated by other types of generation
facilities, an analysis of the rate impacts on
residential and small business customers over the life
of the sourcing agreements, and an analysis of the
likelihood that the initial clean coal facility will
commence commercial operation by and be delivering
power to the facility's busbar by 2016. To assist in
the preparation of its report, the Commission, in
consultation with the Agency, may hire one or more
experts or consultants, the costs of which shall be
paid for by the owner of the initial clean coal
facility. The Commission and Agency may begin the

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process of selecting such experts or consultants prior
to receipt of the facility cost report.
(iii) General Assembly approval. The proposed
sourcing agreements shall not take effect unless,
based on the facility cost report and the Commission's
report, the General Assembly enacts authorizing
legislation approving (A) the projected price, stated
in cents per kilowatthour, to be charged for
electricity generated by the initial clean coal
facility, (B) the projected impact on residential and
small business customers' bills over the life of the
sourcing agreements, and (C) the maximum allowable
return on equity for the project; and
(iv) Commission review. If the General Assembly
enacts authorizing legislation pursuant to
subparagraph (iii) approving a sourcing agreement, the
Commission shall, within 90 days of such enactment,
complete a review of such sourcing agreement. During
such time period, the Commission shall implement any
directive of the General Assembly, resolve any
disputes between the parties to the sourcing agreement
concerning the terms of such agreement, approve the
form of such agreement, and issue an order finding
that the sourcing agreement is prudent and reasonable.
The facility cost report shall be prepared as follows:
(A) The facility cost report shall be prepared by

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duly licensed engineering and construction firms
detailing the estimated capital costs payable to one
or more contractors or suppliers for the engineering,
procurement and construction of the components
comprising the initial clean coal facility and the
estimated costs of operation and maintenance of the
facility. The facility cost report shall include:
(i) an estimate of the capital cost of the
core plant based on one or more front end
engineering and design studies for the
gasification island and related facilities. The
core plant shall include all civil, structural,
mechanical, electrical, control, and safety
systems.
(ii) an estimate of the capital cost of the
balance of the plant, including any capital costs
associated with sequestration of carbon dioxide
emissions and all interconnects and interfaces
required to operate the facility, such as
transmission of electricity, construction or
backfeed power supply, pipelines to transport
substitute natural gas or carbon dioxide, potable
water supply, natural gas supply, water supply,
water discharge, landfill, access roads, and coal
delivery.
The quoted construction costs shall be expressed

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in nominal dollars as of the date that the quote is
prepared and shall include capitalized financing costs
during construction, taxes, insurance, and other
owner's costs, and an assumed escalation in materials
and labor beyond the date as of which the construction
cost quote is expressed.
(B) The front end engineering and design study for
the gasification island and the cost study for the
balance of plant shall include sufficient design work
to permit quantification of major categories of
materials, commodities and labor hours, and receipt of
quotes from vendors of major equipment required to
construct and operate the clean coal facility.
(C) The facility cost report shall also include an
operating and maintenance cost quote that will provide
the estimated cost of delivered fuel, personnel,
maintenance contracts, chemicals, catalysts,
consumables, spares, and other fixed and variable
operations and maintenance costs. The delivered fuel
cost estimate will be provided by a recognized third
party expert or experts in the fuel and transportation
industries. The balance of the operating and
maintenance cost quote, excluding delivered fuel
costs, will be developed based on the inputs provided
by duly licensed engineering and construction firms
performing the construction cost quote, potential

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vendors under long-term service agreements and plant
operating agreements, or recognized third party plant
operator or operators.
The operating and maintenance cost quote
(including the cost of the front end engineering and
design study) shall be expressed in nominal dollars as
of the date that the quote is prepared and shall
include taxes, insurance, and other owner's costs, and
an assumed escalation in materials and labor beyond
the date as of which the operating and maintenance
cost quote is expressed.
(D) The facility cost report shall also include an
analysis of the initial clean coal facility's ability
to deliver power and energy into the applicable
regional transmission organization markets and an
analysis of the expected capacity factor for the
initial clean coal facility.
(E) Amounts paid to third parties unrelated to the
owner or owners of the initial clean coal facility to
prepare the core plant construction cost quote,
including the front end engineering and design study,
and the operating and maintenance cost quote will be
reimbursed through Coal Development Bonds.
(5) Re-powering and retrofitting coal-fired power
plants previously owned by Illinois utilities to qualify
as clean coal facilities. During the 2009 procurement

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planning process and thereafter, the Agency and the
Commission shall consider sourcing agreements covering
electricity generated by power plants that were previously
owned by Illinois utilities and that have been or will be
converted into clean coal facilities, as defined by
Section 1-10 of this Act. Pursuant to such procurement
planning process, the owners of such facilities may
propose to the Agency sourcing agreements with utilities
and alternative retail electric suppliers required to
comply with subsection (d) of this Section and item (5) of
subsection (d) of Section 16-115 of the Public Utilities
Act, covering electricity generated by such facilities. In
the case of sourcing agreements that are power purchase
agreements, the contract price for electricity sales shall
be established on a cost of service basis. In the case of
sourcing agreements that are contracts for differences,
the contract price from which the reference price is
subtracted shall be established on a cost of service
basis. The Agency and the Commission may approve any such
utility sourcing agreements that do not exceed cost-based
benchmarks developed by the procurement administrator, in
consultation with the Commission staff, Agency staff and
the procurement monitor, subject to Commission review and
approval. The Commission shall have authority to inspect
all books and records associated with these clean coal
facilities during the term of any such contract.

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(6) Costs incurred under this subsection (d) or
pursuant to a contract entered into under this subsection
(d) shall be deemed prudently incurred and reasonable in
amount and the electric utility shall be entitled to full
cost recovery pursuant to the tariffs filed with the
Commission.
(d-5) Zero emission standard.
(1) Beginning with the delivery year commencing on
June 1, 2017, the Agency shall, for electric utilities
that serve at least 100,000 retail customers in this
State, procure contracts with zero emission facilities
that are reasonably capable of generating cost-effective
zero emission credits in an amount approximately equal to
16% of the actual amount of electricity delivered by each
electric utility to retail customers in the State during
calendar year 2014. For an electric utility serving fewer
than 100,000 retail customers in this State that
requested, under Section 16-111.5 of the Public Utilities
Act, that the Agency procure power and energy for all or a
portion of the utility's Illinois load for the delivery
year commencing June 1, 2016, the Agency shall procure
contracts with zero emission facilities that are
reasonably capable of generating cost-effective zero
emission credits in an amount approximately equal to 16%
of the portion of power and energy to be procured by the
Agency for the utility. The duration of the contracts

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procured under this subsection (d-5) shall be for a term
of 10 years ending May 31, 2027. The quantity of zero
emission credits to be procured under the contracts shall
be all of the zero emission credits generated by the zero
emission facility in each delivery year; however, if the
zero emission facility is owned by more than one entity,
then the quantity of zero emission credits to be procured
under the contracts shall be the amount of zero emission
credits that are generated from the portion of the zero
emission facility that is owned by the winning supplier.
The 16% value identified in this paragraph (1) is the
average of the percentage targets in subparagraph (B) of
paragraph (1) of subsection (c) of this Section for the 5
delivery years beginning June 1, 2017.
The procurement process shall be subject to the
following provisions:
(A) Those zero emission facilities that intend to
participate in the procurement shall submit to the
Agency the following eligibility information for each
zero emission facility on or before the date
established by the Agency:
(i) the in-service date and remaining useful
life of the zero emission facility;
(ii) the amount of power generated annually
for each of the years 2005 through 2015, and the
projected zero emission credits to be generated

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over the remaining useful life of the zero
emission facility, which shall be used to
determine the capability of each facility;
(iii) the annual zero emission facility cost
projections, expressed on a per megawatthour
basis, over the next 6 delivery years, which shall
include the following: operation and maintenance
expenses; fully allocated overhead costs, which
shall be allocated using the methodology developed
by the Institute for Nuclear Power Operations;
fuel expenditures; non-fuel capital expenditures;
spent fuel expenditures; a return on working
capital; the cost of operational and market risks
that could be avoided by ceasing operation; and
any other costs necessary for continued
operations, provided that "necessary" means, for
purposes of this item (iii), that the costs could
reasonably be avoided only by ceasing operations
of the zero emission facility; and
(iv) a commitment to continue operating, for
the duration of the contract or contracts executed
under the procurement held under this subsection
(d-5), the zero emission facility that produces
the zero emission credits to be procured in the
procurement.
The information described in item (iii) of this

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subparagraph (A) may be submitted on a confidential
basis and shall be treated and maintained by the
Agency, the procurement administrator, and the
Commission as confidential and proprietary and exempt
from disclosure under subparagraphs (a) and (g) of
paragraph (1) of Section 7 of the Freedom of
Information Act. The Office of Attorney General shall
have access to, and maintain the confidentiality of,
such information pursuant to Section 6.5 of the
Attorney General Act.
(B) The price for each zero emission credit
procured under this subsection (d-5) for each delivery
year shall be in an amount that equals the Social Cost
of Carbon, expressed on a price per megawatthour
basis. However, to ensure that the procurement remains
affordable to retail customers in this State if
electricity prices increase, the price in an
applicable delivery year shall be reduced below the
Social Cost of Carbon by the amount ("Price
Adjustment") by which the market price index for the
applicable delivery year exceeds the baseline market
price index for the consecutive 12-month period ending
May 31, 2016. If the Price Adjustment is greater than
or equal to the Social Cost of Carbon in an applicable
delivery year, then no payments shall be due in that
delivery year. The components of this calculation are

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defined as follows:
(i) Social Cost of Carbon: The Social Cost of
Carbon is $16.50 per megawatthour, which is based
on the U.S. Interagency Working Group on Social
Cost of Carbon's price in the August 2016
Technical Update using a 3% discount rate,
adjusted for inflation for each year of the
program. Beginning with the delivery year
commencing June 1, 2023, the price per
megawatthour shall increase by $1 per
megawatthour, and continue to increase by an
additional $1 per megawatthour each delivery year
thereafter.
(ii) Baseline market price index: The baseline
market price index for the consecutive 12-month
period ending May 31, 2016 is $31.40 per
megawatthour, which is based on the sum of (aa)
the average day-ahead energy price across all
hours of such 12-month period at the PJM
Interconnection LLC Northern Illinois Hub, (bb)
50% multiplied by the Base Residual Auction, or
its successor, capacity price for the rest of the
RTO zone group determined by PJM Interconnection
LLC, divided by 24 hours per day, and (cc) 50%
multiplied by the Planning Resource Auction, or
its successor, capacity price for Zone 4

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determined by the Midcontinent Independent System
Operator, Inc., divided by 24 hours per day.
(iii) Market price index: The market price
index for a delivery year shall be the sum of
projected energy prices and projected capacity
prices determined as follows:
(aa) Projected energy prices: the
projected energy prices for the applicable
delivery year shall be calculated once for the
year using the forward market price for the
PJM Interconnection, LLC Northern Illinois
Hub. The forward market price shall be
calculated as follows: the energy forward
prices for each month of the applicable
delivery year averaged for each trade date
during the calendar year immediately preceding
that delivery year to produce a single energy
forward price for the delivery year. The
forward market price calculation shall use
data published by the Intercontinental
Exchange, or its successor.
(bb) Projected capacity prices:
(I) For the delivery years commencing
June 1, 2017, June 1, 2018, and June 1,
2019, the projected capacity price shall
be equal to the sum of (1) 50% multiplied

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by the Base Residual Auction, or its
successor, price for the rest of the RTO
zone group as determined by PJM
Interconnection LLC, divided by 24 hours
per day and, (2) 50% multiplied by the
resource auction price determined in the
resource auction administered by the
Midcontinent Independent System Operator,
Inc., in which the largest percentage of
load cleared for Local Resource Zone 4,
divided by 24 hours per day, and where
such price is determined by the
Midcontinent Independent System Operator,
Inc.
(II) For the delivery year commencing
June 1, 2020, and each year thereafter,
the projected capacity price shall be
equal to the sum of (1) 50% multiplied by
the Base Residual Auction, or its
successor, price for the ComEd zone as
determined by PJM Interconnection LLC,
divided by 24 hours per day, and (2) 50%
multiplied by the resource auction price
determined in the resource auction
administered by the Midcontinent
Independent System Operator, Inc., in

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which the largest percentage of load
cleared for Local Resource Zone 4, divided
by 24 hours per day, and where such price
is determined by the Midcontinent
Independent System Operator, Inc.
For purposes of this subsection (d-5):
"Rest of the RTO" and "ComEd Zone" shall have
the meaning ascribed to them by PJM
Interconnection, LLC.
"RTO" means regional transmission
organization.
(C) No later than 45 days after June 1, 2017 (the
effective date of Public Act 99-906), the Agency shall
publish its proposed zero emission standard
procurement plan. The plan shall be consistent with
the provisions of this paragraph (1) and shall provide
that winning bids shall be selected based on public
interest criteria that include, but are not limited
to, minimizing carbon dioxide emissions that result
from electricity consumed in Illinois and minimizing
sulfur dioxide, nitrogen oxide, and particulate matter
emissions that adversely affect the citizens of this
State. In particular, the selection of winning bids
shall take into account the incremental environmental
benefits resulting from the procurement, such as any
existing environmental benefits that are preserved by

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the procurements held under Public Act 99-906 and
would cease to exist if the procurements were not
held, including the preservation of zero emission
facilities. The plan shall also describe in detail how
each public interest factor shall be considered and
weighted in the bid selection process to ensure that
the public interest criteria are applied to the
procurement and given full effect.
For purposes of developing the plan, the Agency
shall consider any reports issued by a State agency,
board, or commission under House Resolution 1146 of
the 98th General Assembly and paragraph (4) of
subsection (d) of this Section, as well as publicly
available analyses and studies performed by or for
regional transmission organizations that serve the
State and their independent market monitors.
Upon publishing of the zero emission standard
procurement plan, copies of the plan shall be posted
and made publicly available on the Agency's website.
All interested parties shall have 10 days following
the date of posting to provide comment to the Agency on
the plan. All comments shall be posted to the Agency's
website. Following the end of the comment period, but
no more than 60 days later than June 1, 2017 (the
effective date of Public Act 99-906), the Agency shall
revise the plan as necessary based on the comments

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received and file its zero emission standard
procurement plan with the Commission.
If the Commission determines that the plan will
result in the procurement of cost-effective zero
emission credits, then the Commission shall, after
notice and hearing, but no later than 45 days after the
Agency filed the plan, approve the plan or approve
with modification. For purposes of this subsection
(d-5), "cost effective" means the projected costs of
procuring zero emission credits from zero emission
facilities do not cause the limit stated in paragraph
(2) of this subsection to be exceeded.
(C-5) As part of the Commission's review and
acceptance or rejection of the procurement results,
the Commission shall, in its public notice of
successful bidders:
(i) identify how the winning bids satisfy the
public interest criteria described in subparagraph
(C) of this paragraph (1) of minimizing carbon
dioxide emissions that result from electricity
consumed in Illinois and minimizing sulfur
dioxide, nitrogen oxide, and particulate matter
emissions that adversely affect the citizens of
this State;
(ii) specifically address how the selection of
winning bids takes into account the incremental

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environmental benefits resulting from the
procurement, including any existing environmental
benefits that are preserved by the procurements
held under Public Act 99-906 and would have ceased
to exist if the procurements had not been held,
such as the preservation of zero emission
facilities;
(iii) quantify the environmental benefit of
preserving the resources identified in item (ii)
of this subparagraph (C-5), including the
following:
(aa) the value of avoided greenhouse gas
emissions measured as the product of the zero
emission facilities' output over the contract
term multiplied by the U.S. Environmental
Protection Agency eGrid subregion carbon
dioxide emission rate and the U.S. Interagency
Working Group on Social Cost of Carbon's price
in the August 2016 Technical Update using a 3%
discount rate, adjusted for inflation for each
delivery year; and
(bb) the costs of replacement with other
zero carbon dioxide resources, including wind
and photovoltaic, based upon the simple
average of the following:
(I) the price, or if there is more

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than one price, the average of the prices,
paid for renewable energy credits from new
utility-scale wind projects in the
procurement events specified in item (i)
of subparagraph (G) of paragraph (1) of
subsection (c) of this Section; and
(II) the price, or if there is more
than one price, the average of the prices,
paid for renewable energy credits from new
utility-scale solar projects and
brownfield site photovoltaic projects in
the procurement events specified in item
(ii) of subparagraph (G) of paragraph (1)
of subsection (c) of this Section and,
after January 1, 2015, renewable energy
credits from photovoltaic distributed
generation projects in procurement events
held under subsection (c) of this Section.
Each utility shall enter into binding contractual
arrangements with the winning suppliers.
The procurement described in this subsection
(d-5), including, but not limited to, the execution of
all contracts procured, shall be completed no later
than May 10, 2017. Based on the effective date of
Public Act 99-906, the Agency and Commission may, as
appropriate, modify the various dates and timelines

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under this subparagraph and subparagraphs (C) and (D)
of this paragraph (1). The procurement and plan
approval processes required by this subsection (d-5)
shall be conducted in conjunction with the procurement
and plan approval processes required by subsection (c)
of this Section and Section 16-111.5 of the Public
Utilities Act, to the extent practicable.
Notwithstanding whether a procurement event is
conducted under Section 16-111.5 of the Public
Utilities Act, the Agency shall immediately initiate a
procurement process on June 1, 2017 (the effective
date of Public Act 99-906).
(D) Following the procurement event described in
this paragraph (1) and consistent with subparagraph
(B) of this paragraph (1), the Agency shall calculate
the payments to be made under each contract for the
next delivery year based on the market price index for
that delivery year. The Agency shall publish the
payment calculations no later than May 25, 2017 and
every May 25 thereafter.
(E) Notwithstanding the requirements of this
subsection (d-5), the contracts executed under this
subsection (d-5) shall provide that the zero emission
facility may, as applicable, suspend or terminate
performance under the contracts in the following
instances:

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(i) A zero emission facility shall be excused
from its performance under the contract for any
cause beyond the control of the resource,
including, but not restricted to, acts of God,
flood, drought, earthquake, storm, fire,
lightning, epidemic, war, riot, civil disturbance
or disobedience, labor dispute, labor or material
shortage, sabotage, acts of public enemy,
explosions, orders, regulations or restrictions
imposed by governmental, military, or lawfully
established civilian authorities, which, in any of
the foregoing cases, by exercise of commercially
reasonable efforts the zero emission facility
could not reasonably have been expected to avoid,
and which, by the exercise of commercially
reasonable efforts, it has been unable to
overcome. In such event, the zero emission
facility shall be excused from performance for the
duration of the event, including, but not limited
to, delivery of zero emission credits, and no
payment shall be due to the zero emission facility
during the duration of the event.
(ii) A zero emission facility shall be
permitted to terminate the contract if legislation
is enacted into law by the General Assembly that
imposes or authorizes a new tax, special

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assessment, or fee on the generation of
electricity, the ownership or leasehold of a
generating unit, or the privilege or occupation of
such generation, ownership, or leasehold of
generation units by a zero emission facility.
However, the provisions of this item (ii) do not
apply to any generally applicable tax, special
assessment or fee, or requirements imposed by
federal law.
(iii) A zero emission facility shall be
permitted to terminate the contract in the event
that the resource requires capital expenditures in
excess of $40,000,000 that were neither known nor
reasonably foreseeable at the time it executed the
contract and that a prudent owner or operator of
such resource would not undertake.
(iv) A zero emission facility shall be
permitted to terminate the contract in the event
the Nuclear Regulatory Commission terminates the
resource's license.
(F) If the zero emission facility elects to
terminate a contract under subparagraph (E) of this
paragraph (1), then the Commission shall reopen the
docket in which the Commission approved the zero
emission standard procurement plan under subparagraph
(C) of this paragraph (1) and, after notice and

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hearing, enter an order acknowledging the contract
termination election if such termination is consistent
with the provisions of this subsection (d-5).
(2) For purposes of this subsection (d-5), the amount
paid per kilowatthour means the total amount paid for
electric service expressed on a per kilowatthour basis.
For purposes of this subsection (d-5), the total amount
paid for electric service includes, without limitation,
amounts paid for supply, transmission, distribution,
surcharges, and add-on taxes.
Notwithstanding the requirements of this subsection
(d-5), the contracts executed under this subsection (d-5)
shall provide that the total of zero emission credits
procured under a procurement plan shall be subject to the
limitations of this paragraph (2). For each delivery year,
the contractual volume receiving payments in such year
shall be reduced for all retail customers based on the
amount necessary to limit the net increase that delivery
year to the costs of those credits included in the amounts
paid by eligible retail customers in connection with
electric service to no more than 1.65% of the amount paid
per kilowatthour by eligible retail customers during the
year ending May 31, 2009. The result of this computation
shall apply to and reduce the procurement for all retail
customers, and all those customers shall pay the same
single, uniform cents per kilowatthour charge under

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subsection (k) of Section 16-108 of the Public Utilities
Act. To arrive at a maximum dollar amount of zero emission
credits to be paid for the particular delivery year, the
resulting per kilowatthour amount shall be applied to the
actual amount of kilowatthours of electricity delivered by
the electric utility in the delivery year immediately
prior to the procurement, to all retail customers in its
service territory. Unpaid contractual volume for any
delivery year shall be paid in any subsequent delivery
year in which such payments can be made without exceeding
the amount specified in this paragraph (2). The
calculations required by this paragraph (2) shall be made
only once for each procurement plan year. Once the
determination as to the amount of zero emission credits to
be paid is made based on the calculations set forth in this
paragraph (2), no subsequent rate impact determinations
shall be made and no adjustments to those contract amounts
shall be allowed. All costs incurred under those contracts
and in implementing this subsection (d-5) shall be
recovered by the electric utility as provided in this
Section.
No later than June 30, 2019, the Commission shall
review the limitation on the amount of zero emission
credits procured under this subsection (d-5) and report to
the General Assembly its findings as to whether that
limitation unduly constrains the procurement of

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cost-effective zero emission credits.
(3) Six years after the execution of a contract under
this subsection (d-5), the Agency shall determine whether
the actual zero emission credit payments received by the
supplier over the 6-year period exceed the Average ZEC
Payment. In addition, at the end of the term of a contract
executed under this subsection (d-5), or at the time, if
any, a zero emission facility's contract is terminated
under subparagraph (E) of paragraph (1) of this subsection
(d-5), then the Agency shall determine whether the actual
zero emission credit payments received by the supplier
over the term of the contract exceed the Average ZEC
Payment, after taking into account any amounts previously
credited back to the utility under this paragraph (3). If
the Agency determines that the actual zero emission credit
payments received by the supplier over the relevant period
exceed the Average ZEC Payment, then the supplier shall
credit the difference back to the utility. The amount of
the credit shall be remitted to the applicable electric
utility no later than 120 days after the Agency's
determination, which the utility shall reflect as a credit
on its retail customer bills as soon as practicable;
however, the credit remitted to the utility shall not
exceed the total amount of payments received by the
facility under its contract.
For purposes of this Section, the Average ZEC Payment

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shall be calculated by multiplying the quantity of zero
emission credits delivered under the contract times the
average contract price. The average contract price shall
be determined by subtracting the amount calculated under
subparagraph (B) of this paragraph (3) from the amount
calculated under subparagraph (A) of this paragraph (3),
as follows:
(A) The average of the Social Cost of Carbon, as
defined in subparagraph (B) of paragraph (1) of this
subsection (d-5), during the term of the contract.
(B) The average of the market price indices, as
defined in subparagraph (B) of paragraph (1) of this
subsection (d-5), during the term of the contract,
minus the baseline market price index, as defined in
subparagraph (B) of paragraph (1) of this subsection
(d-5).
If the subtraction yields a negative number, then the
Average ZEC Payment shall be zero.
(4) Cost-effective zero emission credits procured from
zero emission facilities shall satisfy the applicable
definitions set forth in Section 1-10 of this Act.
(5) The electric utility shall retire all zero
emission credits used to comply with the requirements of
this subsection (d-5).
(6) Electric utilities shall be entitled to recover
all of the costs associated with the procurement of zero

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emission credits through an automatic adjustment clause
tariff in accordance with subsection (k) and (m) of
Section 16-108 of the Public Utilities Act, and the
contracts executed under this subsection (d-5) shall
provide that the utilities' payment obligations under such
contracts shall be reduced if an adjustment is required
under subsection (m) of Section 16-108 of the Public
Utilities Act.
(7) This subsection (d-5) shall become inoperative on
January 1, 2028.
(d-10) Nuclear Plant Assistance; carbon mitigation
credits.
(1) The General Assembly finds:
(A) The health, welfare, and prosperity of all
Illinois citizens require that the State of Illinois act
to avoid and not increase carbon emissions from electric
generation sources while continuing to ensure affordable,
stable, and reliable electricity to all citizens.
(B) Absent immediate action by the State to preserve
existing carbon-free energy resources, those resources may
retire, and the electric generation needs of Illinois'
retail customers may be met instead by facilities that
emit significant amounts of carbon pollution and other
harmful air pollutants at a high social and economic cost
until Illinois is able to develop other forms of clean
energy.

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(C) The General Assembly finds that nuclear power
generation is necessary for the State's transition to 100%
clean energy, and ensuring continued operation of nuclear
plants advances environmental and public health interests
through providing carbon-free electricity while reducing
the air pollution profile of the Illinois energy
generation fleet.
(D) The clean energy attributes of nuclear generation
facilities support the State in its efforts to achieve
100% clean energy.
(E) The State currently invests in various forms of
clean energy, including, but not limited to, renewable
energy, energy efficiency, and low-emission vehicles,
among others.
(F) The Environmental Protection Agency commissioned
an independent audit which provided a detailed assessment
of the financial condition of the Illinois nuclear fleet
to evaluate its financial viability and whether the
environmental benefits of such resources were at risk. The
report identified the risk of losing the environmental
benefits of several specific nuclear units. The report
also identified that the LaSalle County Generating Station
will continue to operate through 2026 and therefore is not
eligible to participate in the carbon mitigation credit
program.
(G) Nuclear plants provide carbon-free energy, which

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helps to avoid many health-related negative impacts for
Illinois residents.
(H) The procurement of carbon mitigation credits
representing the environmental benefits of carbon-free
generation will further the State's efforts at achieving
100% clean energy and decarbonizing the electricity sector
in a safe, reliable, and affordable manner. Further, the
procurement of carbon emission credits will enhance the
health and welfare of Illinois residents through decreased
reliance on more highly polluting generation.
(I) The General Assembly therefore finds it necessary
to establish carbon mitigation credits to ensure decreased
reliance on more carbon-intensive energy resources, for
transitioning to a fully decarbonized electricity sector,
and to help ensure health and welfare of the State's
residents.
(2) As used in this subsection:
"Baseline costs" means costs used to establish a customer
protection cap that have been evaluated through an independent
audit of a carbon-free energy resource conducted by the
Environmental Protection Agency that evaluated projected
annual costs for operation and maintenance expenses; fully
allocated overhead costs, which shall be allocated using the
methodology developed by the Institute for Nuclear Power
Operations; fuel expenditures; nonfuel capital expenditures;
spent fuel expenditures; a return on working capital; the cost

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of operational and market risks that could be avoided by
ceasing operation; and any other costs necessary for continued
operations, provided that "necessary" means, for purposes of
this definition, that the costs could reasonably be avoided
only by ceasing operations of the carbon-free energy resource.
"Carbon mitigation credit" means a tradable credit that
represents the carbon emission reduction attributes of one
megawatt-hour of energy produced from a carbon-free energy
resource.
"Carbon-free energy resource" means a generation facility
that: (1) is fueled by nuclear power; and (2) is
interconnected to PJM Interconnection, LLC.
(3) Procurement.
(A) Beginning with the delivery year commencing on
June 1, 2022, the Agency shall, for electric utilities
serving at least 3,000,000 retail customers in the State,
seek to procure contracts for no more than approximately
54,500,000 cost-effective carbon mitigation credits from
carbon-free energy resources because such credits are
necessary to support current levels of carbon-free energy
generation and ensure the State meets its carbon dioxide
emissions reduction goals. The Agency shall not make a
partial award of a contract for carbon mitigation credits
covering a fractional amount of a carbon-free energy
resource's projected output.
(B) Each carbon-free energy resource that intends to

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participate in a procurement shall be required to submit
to the Agency the following information for the resource
on or before the date established by the Agency:
(i) the in-service date and remaining useful life
of the carbon-free energy resource;
(ii) the amount of power generated annually for
each of the past 10 years, which shall be used to
determine the capability of each facility;
(iii) a commitment to be reflected in any contract
entered into pursuant to this subsection (d-10) to
continue operating the carbon-free energy resource at
a capacity factor of at least 88% annually on average
for the duration of the contract or contracts executed
under the procurement held under this subsection
(d-10), except in an instance described in
subparagraph (E) of paragraph (1) of subsection (d-5)
of this Section or made impracticable as a result of
compliance with law or regulation;
(iv) financial need and the risk of loss of the
environmental benefits of such resource, which shall
include the following information:
(I) the carbon-free energy resource's cost
projections, expressed on a per megawatt-hour
basis, over the next 5 delivery years, which shall
include the following: operation and maintenance
expenses; fully allocated overhead costs, which

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shall be allocated using the methodology developed
by the Institute for Nuclear Power Operations;
fuel expenditures; nonfuel capital expenditures;
spent fuel expenditures; a return on working
capital; the cost of operational and market risks
that could be avoided by ceasing operation; and
any other costs necessary for continued
operations, provided that "necessary" means, for
purposes of this subitem (I), that the costs could
reasonably be avoided only by ceasing operations
of the carbon-free energy resource; and
(II) the carbon-free energy resource's revenue
projections, including energy, capacity, ancillary
services, any other direct State support, known or
anticipated federal attribute credits, known or
anticipated tax credits, and any other direct
federal support.
The information described in this subparagraph (B) may
be submitted on a confidential basis and shall be treated
and maintained by the Agency, the procurement
administrator, and the Commission as confidential and
proprietary and exempt from disclosure under subparagraphs
(a) and (g) of paragraph (1) of Section 7 of the Freedom of
Information Act. The Office of the Attorney General shall
have access to, and maintain the confidentiality of, such
information pursuant to Section 6.5 of the Attorney

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General Act.
(C) The Agency shall solicit bids for the contracts
described in this subsection (d-10) from carbon-free
energy resources that have satisfied the requirements of
subparagraph (B) of this paragraph (3). The contracts
procured pursuant to a procurement event shall reflect,
and be subject to, the following terms, requirements, and
limitations:
(i) Contracts are for delivery of carbon
mitigation credits, and are not energy or capacity
sales contracts requiring physical delivery. Pursuant
to item (iii), contract payments shall fully deduct
the value of any monetized federal production tax
credits, credits issued pursuant to a federal clean
energy standard, and other federal credits if
applicable.
(ii) Contracts for carbon mitigation credits shall
commence with the delivery year beginning on June 1,
2022 and shall be for a term of 5 delivery years
concluding on May 31, 2027.
(iii) The price per carbon mitigation credit to be
paid under a contract for a given delivery year shall
be equal to an accepted bid price less the sum of:
(I) one of the following energy price indices,
selected by the bidder at the time of the bid for
the term of the contract:

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(aa) the weighted-average hourly day-ahead
price for the applicable delivery year at the
busbar of all resources procured pursuant to
this subsection (d-10), weighted by actual
production from the resources; or
(bb) the projected energy price for the
PJM Interconnection, LLC Northern Illinois Hub
for the applicable delivery year determined
according to subitem (aa) of item (iii) of
subparagraph (B) of paragraph (1) of
subsection (d-5).
(II) the Base Residual Auction Capacity Price
for the ComEd zone as determined by PJM
Interconnection, LLC, divided by 24 hours per day,
for the applicable delivery year for the first 3
delivery years, and then any subsequent delivery
years unless the PJM Interconnection, LLC applies
the Minimum Offer Price Rule to participating
carbon-free energy resources because they supply
carbon mitigation credits pursuant to this Section
at which time, upon notice by the carbon-free
energy resource to the Commission and subject to
the Commission's confirmation, the value under
this subitem shall be zero, as further described
in the carbon mitigation credit procurement plan;
and

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(III) any value of monetized federal tax
credits, direct payments, or similar subsidy
provided to the carbon-free energy resource from
any unit of government that is not already
reflected in energy prices.
If the price-per-megawatt-hour calculation
performed under item (iii) of this subparagraph (C)
for a given delivery year results in a net positive
value, then the electric utility counterparty to the
contract shall multiply such net value by the
applicable contract quantity and remit the amount to
the supplier.
To protect retail customers from retail rate
impacts that may arise upon the initiation of carbon
policy changes, if the price-per-megawatt-hour
calculation performed under item (iii) of this
subparagraph (C) for a given delivery year results in
a net negative value, then the supplier counterparty
to the contract shall multiply such net value by the
applicable contract quantity and remit such amount to
the electric utility counterparty. The electric
utility shall reflect such amounts remitted by
suppliers as a credit on its retail customer bills as
soon as practicable.
(iv) To ensure that retail customers in Northern
Illinois do not pay more for carbon mitigation credits

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than the value such credits provide, and
notwithstanding the provisions of this subsection
(d-10), the Agency shall not accept bids for contracts
that exceed a customer protection cap equal to the
baseline costs of carbon-free energy resources.
The baseline costs for the applicable year shall
be the following:
(I) For the delivery year beginning June 1,
2022, the baseline costs shall be an amount equal
to $30.30 per megawatt-hour.
(II) For the delivery year beginning June 1,
2023, the baseline costs shall be an amount equal
to $32.50 per megawatt-hour.
(III) For the delivery year beginning June 1,
2024, the baseline costs shall be an amount equal
to $33.43 per megawatt-hour.
(IV) For the delivery year beginning June 1,
2025, the baseline costs shall be an amount equal
to $33.50 per megawatt-hour.
(V) For the delivery year beginning June 1,
2026, the baseline costs shall be an amount equal
to $34.50 per megawatt-hour.
An Environmental Protection Agency consultant
forecast, included in a report issued April 14, 2021,
projects that a carbon-free energy resource has the
opportunity to earn on average approximately $30.28

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per megawatt-hour, for the sale of energy and capacity
during the time period between 2022 and 2027.
Therefore, the sale of carbon mitigation credits
provides the opportunity to receive an additional
amount per megawatt-hour in addition to the projected
prices for energy and capacity.
Although actual energy and capacity prices may
vary from year-to-year, the General Assembly finds
that this customer protection cap will help ensure
that the cost of carbon mitigation credits will be
less than its value, based upon the social cost of
carbon identified in the Technical Support Document
issued in February 2021 by the U.S. Interagency
Working Group on Social Cost of Greenhouse Gases and
the PJM Interconnection, LLC carbon dioxide marginal
emission rate for 2020, and that a carbon-free energy
resource receiving payment for carbon mitigation
credits receives no more than necessary to keep those
units in operation.
(D) No later than 7 days after the effective date of
this amendatory Act of the 102nd General Assembly, the
Agency shall publish its proposed carbon mitigation credit
procurement plan. The Plan shall provide that winning bids
shall be selected by taking into consideration which
resources best match public interest criteria that
include, but are not limited to, minimizing carbon dioxide

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emissions that result from electricity consumed in
Illinois and minimizing sulfur dioxide, nitrogen oxide,
and particulate matter emissions that adversely affect the
citizens of this State. The selection of winning bids
shall also take into account the incremental environmental
benefits resulting from the procurement or procurements,
such as any existing environmental benefits that are
preserved by a procurement held under this subsection
(d-10) and would cease to exist if the procurement were
not held, including the preservation of carbon-free energy
resources. For those bidders having the same public
interest criteria score, the relative ranking of such
bidders shall be determined by price. The Plan shall
describe in detail how each public interest factor shall
be considered and weighted in the bid selection process to
ensure that the public interest criteria are applied to
the procurement. The Plan shall, to the extent practical
and permissible by federal law, ensure that successful
bidders make commercially reasonable efforts to apply for
federal tax credits, direct payments, or similar subsidy
programs that support carbon-free generation and for which
the successful bidder is eligible. Upon publishing of the
carbon mitigation credit procurement plan, copies of the
plan shall be posted and made publicly available on the
Agency's website. All interested parties shall have 7 days
following the date of posting to provide comment to the

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Agency on the plan. All comments shall be posted to the
Agency's website. Following the end of the comment period,
but no more than 19 days later than the effective date of
this amendatory Act of the 102nd General Assembly, the
Agency shall revise the plan as necessary based on the
comments received and file its carbon mitigation credit
procurement plan with the Commission.
(E) If the Commission determines that the plan is
likely to result in the procurement of cost-effective
carbon mitigation credits, then the Commission shall,
after notice and hearing and opportunity for comment, but
no later than 42 days after the Agency filed the plan,
approve the plan or approve it with modification. For
purposes of this subsection (d-10), "cost-effective" means
carbon mitigation credits that are procured from
carbon-free energy resources at prices that are within the
limits specified in this paragraph (3). As part of the
Commission's review and acceptance or rejection of the
procurement results, the Commission shall, in its public
notice of successful bidders:
(i) identify how the selected carbon-free energy
resources satisfy the public interest criteria
described in this paragraph (3) of minimizing carbon
dioxide emissions that result from electricity
consumed in Illinois and minimizing sulfur dioxide,
nitrogen oxide, and particulate matter emissions that

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adversely affect the citizens of this State;
(ii) specifically address how the selection of
carbon-free energy resources takes into account the
incremental environmental benefits resulting from the
procurement, including any existing environmental
benefits that are preserved by the procurements held
under this amendatory Act of the 102nd General
Assembly and would have ceased to exist if the
procurements had not been held, such as the
preservation of carbon-free energy resources;
(iii) quantify the environmental benefit of
preserving the carbon-free energy resources procured
pursuant to this subsection (d-10), including the
following:
(I) an assessment value of avoided greenhouse
gas emissions measured as the product of the
carbon-free energy resources' output over the
contract term, using generally accepted
methodologies for the valuation of avoided
emissions; and
(II) an assessment of costs of replacement
with other carbon-free energy resources and
renewable energy resources, including wind and
photovoltaic generation, based upon an assessment
of the prices paid for renewable energy credits
through programs and procurements conducted

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pursuant to subsection (c) of Section 1-75 of this
Act, and the additional storage necessary to
produce the same or similar capability of matching
customer usage patterns.
(F) The procurements described in this paragraph (3),
including, but not limited to, the execution of all
contracts procured, shall be completed no later than
December 3, 2021. The procurement and plan approval
processes required by this paragraph (3) shall be
conducted in conjunction with the procurement and plan
approval processes required by Section 16-111.5 of the
Public Utilities Act, to the extent practicable. However,
the Agency and Commission may, as appropriate, modify the
various dates and timelines under this subparagraph and
subparagraphs (D) and (E) of this paragraph (3) to meet
the December 3, 2021 contract execution deadline.
Following the completion of such procurements, and
consistent with this paragraph (3), the Agency shall
calculate the payments to be made under each contract in a
timely fashion.
(F-1) Costs incurred by the electric utility pursuant
to a contract authorized by this subsection (d-10) shall
be deemed prudently incurred and reasonable in amount, and
the electric utility shall be entitled to full cost
recovery pursuant to a tariff or tariffs filed with the
Commission.

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(G) The counterparty electric utility shall retire all
carbon mitigation credits used to comply with the
requirements of this subsection (d-10).
(H) If a carbon-free energy resource is sold to
another owner, the rights, obligations, and commitments
under this subsection (d-10) shall continue to the
subsequent owner.
(I) This subsection (d-10) shall become inoperative on
January 1, 2028.
(d-20) Energy storage system portfolio standard.
(1) The General Assembly finds that the deployment of
energy storage systems is necessary to successfully
integrate high levels of renewable energy, to avoid the
creation and increase of carbon emissions from electric
generation sources, and to ensure affordable, stable,
clean, reliable, and resilient electricity.
(2) The Agency shall develop an energy storage system
resources procurement plan that includes the competitive
procurement events, procurement programs, or both, as
necessary (i) to meet the goals set forth in this
subsection (d-20), (ii) to meet the planning requirements
established under Sections 16-201 and 16-202 of the Public
Utilities Act, (iii) to meet the clean energy policy
established by Public Act 102-662, and (iv) to cause
electric utilities serving more than 300,000 customers in
the State as of January 1, 2019 to contract for energy

10400SB3393ham003 - 445 - LRB104 17748 SPS 38499 a
storage resources. The energy storage system resources
procurement plan approval processes shall be conducted
consistent with the processes outlined in paragraph (6) of
subsection (b) of Section 16-111.5 of the Public Utilities
Act, with the initial energy storage system resources
procurement plan released for comment in calendar year
2027. The Agency shall review and may revise the energy
storage system resources procurement plan at least every 2
years. The Agency shall establish, and the Commission
shall approve or approve as modified, an energy storage
system resources procurement plan that includes:
(A) storage targets in addition to the initial
procurements specified in paragraph (3) of this
subsection (d-20) at levels identified through the
integrated resource planning process outlined in
Section 16-202 of the Public Utilities Act;
(B) a bid selection process that is based on the
bid price, when compared with an equal energy storage
duration and interconnected to the same independent
system operator (ISO) or regional transmission
organization (RTO), and that may provide for
consideration of the following:
(i) the project's viability and ability to
meet or exceed operational date targets;
(ii) the developer's experience;
(iii) requirements for demonstration of

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binding site control that are sufficient for
proposed energy storage facilities;
(iv) the availability or dependence on any
transmission expansion or upgrades needed; and
(v) other resource adequacy and reliability
considerations;
(C) consideration of the need to ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost
over time;
(D) proposals for the financial support of energy
storage systems using contract models, which may
include, but are not limited to, the following:
(i) an indexed storage credit procurement,
including payments to energy storage system owners
or operators with any offsets and refunds for
potential energy and capacity revenues;
(ii) support for energy storage system
resources through contract structures that do not
create contractual obligations on utilities that
are not contingent on full and timely cost
recovery, that avoid negative financial impacts on
the utilities, and that are agreed upon by the
utilities; and
(iii) other approaches as deemed suitable by
the Agency and the Commission; and

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(E) consideration that the Agency may include a
methodology that could prioritize procurement of
energy storage resources that are located in
communities eligible to receive Energy Transition
Community Grants pursuant to Section 10-20 of the
Energy Community Reinvestment Act.
In developing its procurement plan and conducting the
storage procurements outlined in this paragraph (2) and in
paragraph (3), the Agency may use the services of expert
consulting firms identified in paragraphs (1) and (2) of
subsection (a) of this Section.
(3) Notwithstanding whether an energy storage system
resources procurement plan has been approved, the
following provisions shall apply to the Agency's initial
procurement of energy storage system resources under this
subsection (d-20):
(A) The Agency shall conduct an initial energy
storage procurement on or before August 26, 2026 or 90
days after the effective date of this amendatory Act
of the 104th General Assembly, whichever is earlier.
For the purposes of this initial energy storage
procurement, the Agency shall conduct a procurement
that results in electric utilities that served more
than 300,000 customers in the State as of January 1,
2019 contracting for at least 1,038 megawatts of
cost-effective stand-alone energy storage systems that

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can achieve commercial operation on or before December
31, 2029 or an alternative date proposed by the Agency
that is no later than December 31, 2030. The
procurement target shall be separated for projects
interconnected within Midcontinent Independent System
Operator Local Resource Zone 4 (MISO Zone 4) and for
projects interconnected within the PJM
Interconnection, LLC ComEd Locational Deliverability
Area (PJM ComEd Area) as follows:
(i) 450 megawatts in MISO Zone 4; and
(ii) 588 megawatts in the PJM ComEd Area.
For purposes of this subsection (d-20),
"stand-alone" means systems that are (i) separately
metered by a revenue-quality meter that satisfies the
requirements of the RTO; (ii) operate independently
without constraints or hindrances from other
generation units; and (iii) demonstrate the ability to
charge and discharge independent of any generation
unit output.
(B) The Agency shall conduct a series of
additional energy storage procurements that result in
electric utilities contracting for energy storage
resources in an amount of 3,000 megawatts of
cumulative energy storage capacity for projects
committed to reaching commercial operation on or
before December 31, 2030, or an alternative date

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proposed by the Agency, subject to extension for a
delay due to interconnection of the energy storage
system, a delay in obtaining permits necessary to
build or operate the energy storage system, or other
circumstances at the discretion of the Agency.
The additional energy storage resources
procurements shall be conducted in calendar years 2027
and 2028 in a manner that ensures the quantities
listed in this subparagraph (B), and as updated in the
integrated resource plan approved by the Commission
pursuant to Section 16-201 of the Public Utilities
Act, are met in the specified timeframe. To the extent
the integrated resource planning process outlined in
Section 16-202 of the Public Utilities Act authorizes
energy storage system procurement amounts above the
amount identified in this subparagraph (B), the Agency
shall conduct additional energy storage procurements
in 2028, 2029, 2030, and thereafter that result in
electric utilities contracting for energy storage
resources at those additional identified levels. The
procurements shall be conducted in a manner that
maximizes projects available in the MISO and PJM
queues, ensures the likelihood of project development
through the development of project maturity
requirements, enables sufficient competition for price
competitiveness, and aligns to the extent practicable

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with regional transmission organization study phases.
The procurements shall select projects interconnected
to MISO Zone 4 and the PJM ComEd Area and shall follow
either (i) a similar geographic split to the ratio of
quantities established in subparagraph (A) of this
paragraph (3), (ii) an alternative geographic split
proposed by the Agency based on project availability
in advanced stages of the MISO and PJM queues, or (iii)
that is informed by MISO and PJM planning activities,
auctions, or reports that indicate capacity resource
shortages or impending shortages and that reflect the
assessments made through the processes outlined in
subparagraph (A) of paragraph (2). The additional
energy storage capacity procurements may be adjusted
upward if determined necessary through the planning
process outlined in Section 16-201 of the Public
Utilities Act at times determined by the Commission.
(C) The initial energy storage resources
procurement under subparagraph (A) of this paragraph
(3) shall adopt a standard indexed storage credit
contract modeled after the contract and follow a
process modeled after the process included in the
staff report submitted to the Governor, General
Assembly, and Commission pursuant to subsection (g) of
Section 16-135 of the Public Utilities Act on May 1,
2025. In developing the procurement rules and

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procurement process for the initial procurement, the
Agency shall provide an opportunity for comment on the
indexed storage credit contract included in the May 1,
2025 staff report and shall adopt modifications to the
contract consistent with the process outlined in
paragraph (2) of subsection (e) of Section 16-111.5 of
the Public Utilities Act.
(D) For the additional energy storage resources
procurements conducted in accordance with subparagraph
(B) of this paragraph (3), the Agency may, among other
considerations, consider other contract structures if
such contract structures and agreements do not create
contractual obligations on utilities that are not
contingent on full and timely cost recovery, avoid
negative financial impacts on the utilities, and are
agreed upon by the participating utility.
(E) The initial and additional energy storage
resources procurements under this paragraph (3) shall
solicit 20-year contracts.
(F) The Agency shall submit its proposed selection
of successful bids for each procurement event pursuant
to paragraphs (2) and (3) to the Commission for
approval consistent with the processes outlined in
Section 16-111.5 of the Public Utilities Act to the
extent practicable.
(4) The energy storage system resources procurement

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plans developed by the Agency may consider alternatives to
the initial and additional procurement terms described in
paragraph (3) of this subsection (d-20), including, but
not limited to:
(A) alternatives to the standard indexed storage
credit contract used in the initial terms described in
subparagraph (C) of paragraph (3) of this subsection
(d-20);
(B) energy storage systems that are not
stand-alone;
(C) proportionate allocations between MISO Zone 4
and the PJM ComEd Area that are not based upon load
share, including allocations reflecting the
assessments made through the processes outlined in
subparagraph (A) of paragraph (2);
(D) contract lengths other than 20 years;
(E) energy storage system durations other than 4
hours; and
(F) energy storage systems connected to the
distribution systems of the electric utilities.
The Agency may propose specific timelines for energy
storage system resources procurements, which may differ
across RTO zones, that are based in part upon a
consideration of (i) the timing of the release of
interconnection cost information through both MISO and PJM
interconnection queue processes, (ii) factors that

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maximize the likelihood of successful project development,
(iii) enabling sufficient competition for price
competitiveness, and (iv) aligning to the extent
practicable with RTO study phases.
(5) The Agency shall procure cost-effective energy
storage credits or other contract instruments intended to
facilitate the successful development of energy storage
projects. The procurement administrator shall establish
confidential price benchmarks based on publicly available
data on regional technology costs. Confidential price
benchmarks shall be developed by the procurement
administrator, in consultation with Commission staff,
Agency staff, and the procurement monitor, and shall be
subject to Commission review and approval. Price
benchmarks shall reflect development costs, financing
costs, and related costs resulting from requirements
imposed through other provisions of State law. As used in
this paragraph (5), "cost-effective" means a bidder's bid
price that does not exceed confidential price benchmarks.
(6) All procurements under this subsection (d-20)
shall comply with the geographic requirements in
subparagraph (I) of paragraph (1) of subsection (c) of
Section 1-75 and shall follow the procurement processes
and procedures described in this Section and Section
16-111.5 of the Public Utilities Act, to the extent
practicable. The processes and procedures may be expedited

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to accommodate the schedule established by this Section.
The Agency shall require all bidders to pay to the Agency a
nonrefundable deposit determined by the Agency and no less
than $10,000 per bid as practical. The Agency may also
assess bidder and supplier fees to cover the cost of
procurement events and develop collateral requirements to
maximize the likelihood of successful project development.
Bidders in the initial and additional procurements
described in paragraph (3) of this subsection (d-20) shall
also demonstrate experience in developing to commercial
readiness. As used in this paragraph (6), "developing to
commercial readiness" means having notice to proceed in
owning or operating energy facilities with a combined
nameplate capacity of at least 100 megawatts.
(7) In order to advance priority access to the clean
energy economy for businesses and workers from communities
that have been excluded from economic opportunities in the
energy sector, have been subject to disproportionate
levels of pollution, and have disproportionately
experienced negative public health outcomes, the Agency
shall apply its equity accountability system and minimum
equity standards established under subsections (c-10),
(c-15), (c-20), (c-25), and (c-30) of this Section to
energy storage procurement and programs and may include
any proposed modifications to the equity accountability
system and minimum equity standards that may be warranted

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with respect to energy storage resources in its plan
submission to the Commission under Section 16-111.5 of the
Public Utilities Act.
(8) Projects shall be developed in compliance with the
prevailing wage and project labor agreement requirements
for renewable energy projects in subparagraph (Q) of
paragraph (1) of subsection (c) of Section 1-75.
(9) An entity operating an energy storage facility
shall demonstrate that it has entered into a labor peace
agreement with a bona fide labor organization that is
actively engaged in representing its employees. The labor
peace agreement shall apply to the employees necessary for
the ongoing maintenance and operation of the energy
storage facility. The existence of a labor peace agreement
shall be an ongoing material condition of an entity's
authorization to maintain and operate the energy storage
facility.
(10) In order to promote the competitive development
of energy storage systems in furtherance of the State's
interest in the health, safety, and welfare of its
residents, storage credits shall not be eligible to be
selected under this subsection (d-20) if the energy
storage resources are sourced from an energy storage
system whose costs were being recovered through rates
regulated by the State or any other state or states on or
after January 1, 2017. No entity shall be permitted to bid

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unless it certifies to the Agency that it is not an
electric utility, as defined in Section 16-102 of the
Public Utilities Act, serving more than 10,000 customers
in the State.
(11) The Agency shall require, as a prerequisite to
payment for any storage credits, that the winning bidder
provide the Agency or its designee a copy of the
interconnection agreement under which the applicable
energy storage system is connected to the transmission or
distribution system.
(12) Contracts shall provide that, if the cost
recovery mechanism referenced in subsection (k) of Section
16-108 of the Public Utilities Act remains in full force
without amendment or the utility is otherwise authorized
or entitled to full, prompt, and uninterrupted recovery of
its costs through any other mechanism, then such seller
shall be entitled to full, prompt, and uninterrupted
payment under the applicable contract notwithstanding the
application of this paragraph (12).
(e) The draft procurement plans are subject to public
comment, as required by Section 16-111.5 of the Public
Utilities Act.
(f) The Agency shall submit the final procurement plan to
the Commission. The Agency shall revise a procurement plan if
the Commission determines that it does not meet the standards
set forth in Section 16-111.5 of the Public Utilities Act.

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(g) The Agency shall assess fees to each affected utility
to recover the costs incurred in preparation of procurement
plans and in the operation of programs.
(h) The Agency shall assess fees to each bidder to recover
the costs incurred in connection with a competitive
procurement process.
(i) A renewable energy credit, carbon emission credit,
zero emission credit, or carbon mitigation credit can only be
used once to comply with a single portfolio or other standard
as set forth in subsection (c), subsection (d), or subsection
(d-5) of this Section, respectively. A renewable energy
credit, carbon emission credit, zero emission credit, or
carbon mitigation credit cannot be used to satisfy the
requirements of more than one standard. If more than one type
of credit is issued for the same megawatt hour of energy, only
one credit can be used to satisfy the requirements of a single
standard. After such use, the credit must be retired together
with any other credits issued for the same megawatt hour of
energy.
(Source: P.A. 103-380, eff. 1-1-24; 103-580, eff. 12-8-23;
103-1066, eff. 2-20-25; 104-458, eff. 6-1-26.)
Section 30. The Illinois Procurement Code is amended by
changing Section 15-35 as follows:
(30 ILCS 500/15-35)

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Sec. 15-35. Vendor portal. Each chief procurement officer
may, in consultation with the agencies under his or her
jurisdiction and the Procurement Policy Board, establish a
vendor portal. The vendor portal shall allow a potential
vendor to provide certifications, disclosures, registrations,
and other documentation needed to do business with a State
agency in advance of any particular procurement. A potential
vendor who registers with the vendor portal and provides this
information may submit its registration number, with a
confirmation that the portal information remains current, as
part of its response to a competitive selection or a
contracting process, rather than submit the same information
in full. One or more chief procurement officers may jointly
operate a vendor portal if a single portal would better serve
the needs of the State agencies and the vendor community. A
chief procurement officer may accept, for use on procurements
and contracts under his or her jurisdiction, the registration
from another chief procurement officer's vendor portal. This
Section applies notwithstanding any laws to the contrary
except for later enacted laws that specifically refer to this
Section.
Nothing in this Section shall preclude a State agency from
implementing its own pre-qualification, certification,
disclosure, and registration requirements necessary to conduct
and manage its program operation.
This Section does not apply to any contract for any

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project as to which federal funds are available for
expenditure when its provisions may be in conflict with
federal law or federal regulation.
Notwithstanding any other provision of law, the vendor
portal for the Department of Transportation shall include any
locally applicable project labor agreement requirements.
(Source: P.A. 97-895, eff. 8-3-12; 98-1076, eff. 1-1-15.)
Section 35. The Illinois Income Tax Act is amended by
changing Section 214 as follows:
(35 ILCS 5/214)
Sec. 214. Tax credit for affordable housing donations.
(a) Beginning with taxable years ending on or after
December 31, 2001 and until the taxable year ending on
December 31, 2026, a taxpayer who makes a donation under
Section 7.28 of the Illinois Housing Development Act is
entitled to a credit against the tax imposed by subsections
(a) and (b) of Section 201 in an amount equal to 50% of the
value of the donation. For taxable years ending before
December 31, 2023, partners, shareholders of subchapter S
corporations, and owners of limited liability companies (if
the limited liability company is treated as a partnership for
purposes of federal and State income taxation) are entitled to
a credit under this Section to be determined in accordance
with the determination of income and distributive share of

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income under Sections 702 and 703 and subchapter S of the
Internal Revenue Code. For taxable years ending on or after
December 31, 2023, partners and shareholders of subchapter S
corporations are entitled to a credit under this Section as
provided in Section 251. Persons or entities not subject to
the tax imposed by subsections (a) and (b) of Section 201 and
who make a donation under Section 7.28 of the Illinois Housing
Development Act are entitled to a credit as described in this
subsection and may transfer that credit as described in
subsection (c).
(b) If the amount of the credit exceeds the tax liability
for the year, the excess may be carried forward and applied to
the tax liability of the 5 taxable years following the excess
credit year. The tax credit shall be applied to the earliest
year for which there is a tax liability. If there are credits
for more than one year that are available to offset a
liability, the earlier credit shall be applied first.
(c) The transfer of the tax credit allowed under this
Section may be made (i) to the purchaser of land that has been
designated solely for affordable housing projects in
accordance with the Illinois Housing Development Act or (ii)
to another donor who has also made a donation in accordance
with Section 7.28 of the Illinois Housing Development Act.
Construction projects funded in whole or in part by the
proceeds of tax credits transferred pursuant to this
subsection shall be considered public works within the meaning

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of the Prevailing Wage Act if the transfer occurs prior to
construction beginning. However, the following construction
projects are not considered public works by operation of this
provision: (i) construction projects that construct or
rehabilitate an aggregate total of 12 or fewer residential
units; (ii) construction projects that construct or
rehabilitate an aggregate total of fewer than 50 residential
units if the property is owned by a non-profit entity, a
limited liability company whose sole member or members are
non-profit entities, or a limited partnership or limited
liability company where the sole general partner or managing
member is a non-profit entity; or (iii) construction projects
that are owner-occupied residential structures. The inclusion
of construction projects as public works under this provision
applies only to the initial construction of the project and
does not apply in perpetuity to either future modifications to
the structure or other construction projects not funded by the
proceeds of the transfer or sale of the credit.
(d) A taxpayer claiming the credit provided by this
Section must maintain and record any information that the
Department may require by regulation regarding the project for
which the credit is claimed. When claiming the credit provided
by this Section, the taxpayer must provide information
regarding the taxpayer's donation to the project under the
Illinois Housing Development Act.
(Source: P.A. 102-16, eff. 6-17-21; 102-175, eff. 7-29-21;

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103-396, eff. 1-1-24.)
Section 40. The Illinois Educational Labor Relations Act
is amended by changing Section 12 as follows:
(115 ILCS 5/12) (from Ch. 48, par. 1712)
Sec. 12. Impasse procedures.
(a) This subsection (a) applies only to collective
bargaining between an educational employer that is not a
public school district organized under Article 34 of the
School Code and an exclusive representative of its employees.
If the parties engaged in collective bargaining have not
reached an agreement by 90 days before the scheduled start of
the forthcoming school year, the parties shall notify the
Illinois Educational Labor Relations Board concerning the
status of negotiations. This notice shall include a statement
on whether mediation has been used.
Upon demand of either party, collective bargaining between
the employer and an exclusive bargaining representative must
begin within 60 days of the date of certification of the
representative by the Board, or in the case of an existing
exclusive bargaining representative, within 60 days of the
receipt by a party of a demand to bargain issued by the other
party. Once commenced, collective bargaining must continue for
at least a 60 day period, unless a contract is entered into.
Except as otherwise provided in subsection (b) of this

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Section, if after a reasonable period of negotiation and
within 90 days of the scheduled start of the forth-coming
school year, the parties engaged in collective bargaining have
reached an impasse, either party may petition the Board to
initiate mediation. Alternatively, the Board on its own motion
may initiate mediation during this period. However, mediation
shall be initiated by the Board at any time when jointly
requested by the parties and the services of the mediators
shall continuously be made available to the employer and to
the exclusive bargaining representative for purposes of
arbitration of grievances and mediation or arbitration of
contract disputes. If requested by the parties, the mediator
may perform fact-finding and in so doing conduct hearings and
make written findings and recommendations for resolution of
the dispute. Such mediation shall be provided by the Board and
shall be held before qualified impartial individuals. Nothing
prohibits the use of other individuals or organizations such
as the Federal Mediation and Conciliation Service, the
Illinois Department of Labor, or the American Arbitration
Association selected by both the exclusive bargaining
representative and the employer.
If the parties engaged in collective bargaining fail to
reach an agreement within 45 days of the scheduled start of the
forthcoming school year and have not requested mediation, the
Illinois Educational Labor Relations Board shall invoke
mediation.

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Whenever mediation is initiated or invoked under this
subsection (a), the parties may stipulate to defer selection
of a mediator in accordance with rules adopted by the Board.
(a-5) This subsection (a-5) applies only to collective
bargaining between a public school district or a combination
of public school districts, including, but not limited to,
joint cooperatives, that is not organized under Article 34 of
the School Code and an exclusive representative of its
employees.
(1) Any time 15 days after mediation has commenced,
either party may initiate the public posting process. The
mediator may initiate the public posting process at any
time 15 days after mediation has commenced during the
mediation process. Initiation of the public posting
process must be filed in writing with the Board, and
copies must be submitted to the parties on the same day the
initiation is filed with the Board.
(2) Within 7 days after the initiation of the public
posting process, each party shall submit to the mediator,
the Board, and the other party in writing the most recent
offer of the party, including a cost summary of the offer.
Seven days after receipt of the parties' offers, the Board
shall make public the offers and each party's cost summary
dealing with those issues on which the parties have failed
to reach agreement by immediately posting the offers on
its Internet website, unless otherwise notified by the

10400SB3393ham003 - 465 - LRB104 17748 SPS 38499 a
mediator or jointly by the parties that agreement has been
reached. On the same day of publication by the Board, at a
minimum, the school district shall distribute notice of
the availability of the offers on the Board's Internet
website to all news media that have filed an annual
request for notices from the school district pursuant to
Section 2.02 of the Open Meetings Act. The parties' offers
shall remain on the Board's Internet website until the
parties have reached and ratified an agreement.
(a-10) This subsection (a-10) applies only to collective
bargaining between a public school district organized under
Article 34 of the School Code and an exclusive representative
of its employees, other than educational employees who are
forbidden from striking under this Act. For educational
employees who are forbidden from striking, either the employer
or exclusive representative may elect to utilize the
fact-finding procedures set forth in this subsection (a-10),
except as otherwise specified in paragraph (5) of this
subsection (a-10).
(1) For collective bargaining agreements between an
educational employer to which this subsection (a-10)
applies and an exclusive representative of its employees,
if the parties fail to reach an agreement after a
reasonable period of mediation, the dispute shall be
submitted to fact-finding in accordance with this
subsection (a-10). Either the educational employer or the

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exclusive representative may initiate fact-finding by
submitting a written demand to the other party with a copy
of the demand submitted simultaneously to the Board.
(2) Within 3 days following a party's demand for
fact-finding, each party shall appoint one member of the
fact-finding panel, unless the parties agree to proceed
without a tri-partite panel. Following these appointments,
if any, the parties shall select a qualified impartial
individual to serve as the fact-finder and chairperson of
the fact-finding panel, if applicable. An individual shall
be considered qualified to serve as the fact-finder and
chairperson of the fact-finding panel, if applicable, if
he or she was not the same individual who was appointed as
the mediator and if he or she satisfies the following
requirements: membership in good standing with the
National Academy of Arbitrators, Federal Mediation and
Conciliation Service, or American Arbitration Association
for a minimum of 10 years; membership on the mediation
roster for the Illinois Labor Relations Board or Illinois
Educational Labor Relations Board; issuance of at least 5
interest arbitration awards arising under the Illinois
Public Labor Relations Act; and participation in impasse
resolution processes arising under private or public
sector collective bargaining statutes in other states. If
the parties are unable to agree on a fact-finder, the
parties shall request a panel of fact-finders who satisfy

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the requirements set forth in this paragraph (2) from
either the Federal Mediation and Conciliation Service or
the American Arbitration Association and shall select a
fact-finder from such panel in accordance with the
procedures established by the organization providing the
panel.
(3) The fact-finder shall have the following duties
and powers:
(A) to require the parties to submit a statement
of disputed issues and their positions regarding each
issue either jointly or separately;
(B) to identify disputed issues that are economic
in nature;
(C) to meet with the parties either separately or
in executive sessions;
(D) to conduct hearings and regulate the time,
place, course, and manner of the hearings;
(E) to request the Board to issue subpoenas
requiring the attendance and testimony of witnesses or
the production of evidence;
(F) to administer oaths and affirmations;
(G) to examine witnesses and documents;
(H) to create a full and complete written record
of the hearings;
(I) to attempt mediation or remand a disputed
issue to the parties for further collective

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bargaining;
(J) to require the parties to submit final offers
for each disputed issue either individually or as a
package or as a combination of both; and
(K) to employ any other measures deemed
appropriate to resolve the impasse.
(4) If the dispute is not settled within 75 days after
the appointment of the fact-finding panel, the
fact-finding panel shall issue a private report to the
parties that contains advisory findings of fact and
recommended terms of settlement for all disputed issues
and that sets forth a rationale for each recommendation.
The fact-finding panel, acting by a majority of its
members, shall base its findings and recommendations upon
the following criteria as applicable:
(A) the lawful authority of the employer;
(B) the federal and State statutes or local
ordinances and resolutions applicable to the employer;
(C) prior collective bargaining agreements and the
bargaining history between the parties;
(D) stipulations of the parties;
(E) the interests and welfare of the public and
the students and families served by the employer;
(F) the employer's financial ability to fund the
proposals based on existing available resources,
provided that such ability is not predicated on an

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assumption that lines of credit or reserve funds are
available or that the employer may or will receive or
develop new sources of revenue or increase existing
sources of revenue;
(G) the impact of any economic adjustments on the
employer's ability to pursue its educational mission;
(H) the present and future general economic
conditions in the locality and State;
(I) a comparison of the wages, hours, and
conditions of employment of the employees involved in
the dispute with the wages, hours, and conditions of
employment of employees performing similar services in
public education in the 10 largest U.S. cities, except
that for educational employees who are forbidden to
strike, this comparison shall be based on comparable
communities;
(J) the average consumer prices in urban areas for
goods and services, which is commonly known as the
cost of living;
(K) the overall compensation presently received by
the employees involved in the dispute, including
direct wage compensation; vacations, holidays, and
other excused time; insurance and pensions; medical
and hospitalization benefits; the continuity and
stability of employment and all other benefits
received; and how each party's proposed compensation

10400SB3393ham003 - 470 - LRB104 17748 SPS 38499 a
structure supports the educational goals of the
district, however for educational employees who are
forbidden from striking, this analysis shall also
include all other employees who are employed by the
educational employer;
(L) changes in any of the circumstances listed in
items (A) through (K) of this paragraph (4) during the
fact-finding proceedings;
(M) the effect that any term the parties are at
impasse on has or may have on the overall educational
environment, learning conditions, and working
conditions with the school district; and
(N) the effect that any term the parties are at
impasse on has or may have in promoting the public
policy of this State.
(5) The fact-finding panel's recommended terms of
settlement shall be deemed agreed upon by the parties as
the final resolution of the disputed issues and
incorporated into the collective bargaining agreement
executed by the parties, unless either party tenders to
the other party and the chairperson of the fact-finding
panel a notice of rejection of the recommended terms of
settlement with a rationale for the rejection, within 15
days after the date of issuance of the fact-finding
panel's report. With regard to educational employees who
are forbidden from striking, if either party submits a

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notice of rejection, either party may utilize mandatory
interest arbitration proceedings established in subsection
(e). For all other educational employees subject to this
subsection (a-10), if either party submits a notice of
rejection, the chairperson of the fact-finding panel shall
publish the fact-finding panel's report and the notice of
rejection for public information by delivering a copy to
all newspapers of general circulation in the community
with simultaneous written notice to the parties.
The changes made to this subsection (a-10) by this
amendatory Act of the 103rd General Assembly apply only to
collective bargaining agreements entered into, modified,
extended, or renewed on or after the effective date of this
amendatory Act of the 103rd General Assembly.
(b) (Blank).
(c) The costs of fact finding and mediation shall be
shared equally between the employer and the exclusive
bargaining agent, provided that, for purposes of mediation
under this Act, if either party requests the use of mediation
services from the Federal Mediation and Conciliation Service
or, if the Federal Mediation and Conciliation Service is
unable to provide mediation services, from the Illinois
Department of Labor, the other party shall either join in such
request or bear the additional cost of mediation services from
another source. All other costs and expenses of complying with
this Section must be borne by the party incurring them.

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(c-5) If an educational employer or exclusive bargaining
representative refuses to participate in mediation or fact
finding when required by this Section, the refusal shall be
deemed a refusal to bargain in good faith.
(d) Nothing in this Act prevents an employer and an
exclusive bargaining representative from mutually submitting
to final and binding impartial arbitration unresolved issues
concerning the terms of a new collective bargaining agreement.
(e) This subsection only applies to collective bargaining
between a public school district organized under Article 34 of
the School Code and an exclusive representative of educational
employees who are forbidden from striking under this Act after
the parties reach impasse when bargaining an initial and any
successor collective bargaining agreements. Educational
employees who are forbidden from striking have the right to
submit negotiation disputes regarding wages, hours, and
conditions of employment that are mandatory subjects of
bargaining for resolution through the following mandatory
arbitration procedures:
(1) For collective bargaining agreements between an
educational employer and exclusive representative,
mediation shall commence 30 days prior to the expiration
of a collective bargaining agreement; or upon 15 days'
notice from either party; or at such later time as the
mediation services chosen can be provided to the parties.
In mediation under this Section, if either party requests

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the use of mediation services from the Federal Mediation
and Conciliation Service, the other party shall either
join in such request or bear the additional cost of
mediation services from another source. The mediator shall
have a duty to keep the Board informed on the progress of
the mediation. If any dispute has not been resolved within
15 days after the first meeting of the parties and the
mediator, or within such other time limit as may be
mutually agreed upon by the parties, either the exclusive
representative or employer may request of the other, in
writing, arbitration, and shall submit a copy of the
request to the Board.
(2) Within 10 days after such a request for
arbitration has been made, the educational employer shall
choose a delegate and the employees' exclusive
representative shall choose a delegate to a panel of
arbitration as provided in this Section. The employer and
employees shall forthwith advise the other and the Board
of their selections. The parties may agree to waive the
tripartite panel and use a sole arbitrator to resolve this
issue.
(3) Within 7 days after the request of either party,
the parties shall request a panel of impartial arbitrators
from which they shall select the neutral chairperson, or
sole arbitrator, according to the procedures provided in
this Section. If the parties have agreed to a contract

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that contains a grievance resolution procedure, the
chairperson or sole arbitrator shall be selected using
their agreed contract procedure unless they mutually agree
to another procedure. If the parties fail to notify the
Board of their selection of a neutral chairperson within 7
days after receipt of the list of impartial arbitrators,
the Board shall appoint, at random, a neutral chairperson
from the list. In the absence of an agreed contract
procedure for selecting an impartial arbitrator, the
parties shall submit a request to the Federal Mediation
and Conciliation Service for a panel of 7 arbitrators who
are members in good standing with the National Academy of
Arbitrators, and have issued at least 5 interest
arbitration awards arising under the Illinois Public Labor
Relations Act or this Act. The parties shall conduct a
coin toss to determine who strikes first, and the parties
shall alternately strike arbitrators from the list until
one remains. The parties shall promptly notify the Board
of their selection.
(4) The chairperson or sole arbitrator shall call a
hearing to begin within 15 days and give reasonable notice
of the time and place of the hearing. The hearing shall be
held at the offices of the Board or at such other location
as the Board deems appropriate. The chairperson or sole
arbitrator shall preside over the hearing and shall take
testimony. Any oral or documentary evidence and other data

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deemed relevant by the arbitration panel may be received
in evidence. The proceedings shall be informal. Technical
rules of evidence shall not apply and the competency of
the evidence shall not thereby be deemed impaired. A
verbatim record of the proceedings shall be made and the
arbitrator shall arrange for the necessary recording
service. Transcripts may be ordered at the expense of the
party ordering them, but the transcripts shall not be
necessary for a decision by the arbitration panel or sole
arbitrator. The expense of the proceedings, including a
fee for the chairperson or sole arbitrator, shall be borne
equally by each of the parties to the dispute. The
delegates, if public officers or employees, shall continue
on the payroll of the public employer without loss of pay.
The hearing conducted by the arbitration panel or sole
arbitrator may be adjourned from time to time, but unless
otherwise agreed by the parties, shall be concluded within
30 days of the time of its commencement. Majority actions
and rulings shall constitute the actions and rulings of
the arbitration panel. Arbitration proceedings under this
Section shall not be interrupted or terminated by reason
of any unfair labor practice charge filed by either party
at any time.
(5) The arbitration panel or sole arbitrator may
administer oaths, require the attendance of witnesses, and
the production of such books, papers, contracts,

10400SB3393ham003 - 476 - LRB104 17748 SPS 38499 a
agreements, and documents as may be deemed by it material
to a just determination of the issues in dispute, and for
such purpose may issue subpoenas. If any person refuses to
obey a subpoena, or refuses to be sworn or to testify, or
if any witness, party, or attorney is guilty of any
contempt while in attendance at any hearing, the
arbitration panel or sole arbitrator may, or the Attorney
General if requested shall, invoke the aid of any circuit
court within the jurisdiction in which the hearing is
being held, which court shall issue an appropriate order.
Any failure to obey the order may be punished by the court
as contempt.
(6) At any time before the rendering of an award, the
chairperson of the arbitration panel or sole arbitrator,
if the chairperson of the arbitration panel or sole
arbitrator is of the opinion that it would be useful or
beneficial to do so, may remand the dispute to the parties
for further collective bargaining for a period not to
exceed 2 weeks. If the dispute is remanded for further
collective bargaining, the time provisions of this Act
shall be extended for a time period equal to that of the
remand. The chairperson of the arbitration panel or sole
arbitrator shall notify the Board of the remand.
(7) At or before the conclusion of the hearing held
pursuant to paragraph (4), the arbitration panel or sole
arbitrator shall identify the economic issues in dispute,

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and direct each of the parties to submit, within such time
limit as the panel shall prescribe, to the arbitration
panel or sole arbitrator and to each other its last offer
of settlement on each economic issue. The determination of
the arbitration panel or sole arbitrator as to the issues
in dispute and as to which of these issues are economic
shall be conclusive. The arbitration panel or sole
arbitrator, within 30 days after the conclusion of the
hearing, or such further additional periods to which the
parties may agree, shall make written findings of fact and
adopt a written opinion and shall mail or otherwise
deliver a true copy thereof to the parties and their
representatives and to the Board. As to each economic
issue, the arbitration panel or sole arbitrator shall
adopt the last offer of settlement which, in the opinion
of the arbitration panel or sole arbitrator, more nearly
complies with the applicable factors prescribed in
paragraph (8). The findings, opinions, and order as to all
other issues shall be based upon the applicable factors
prescribed in paragraph (8).
(8) The arbitration decision shall be limited to
mandatory subjects of bargaining. If there is no agreement
between the parties, or if there is an agreement but the
parties have begun negotiations or discussions looking to
a new agreement or amendment of the existing agreement,
and wage rates or other conditions of employment under the

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proposed new or amended agreement are in dispute, the
arbitration panel shall base its findings, opinions, and
order upon the following factors, as applicable:
(A) the lawful authority of the employer;
(B) the federal and State statutes or local
ordinances and resolutions applicable to the employer;
(C) prior collective bargaining agreements and the
bargaining history between the parties;
(D) stipulations of the parties;
(E) the interests and welfare of the public and
the students and families served by the employer;
(F) the employer's financial ability to fund the
proposals based on existing available resources,
provided that such ability is not predicated on an
assumption that lines of credit or reserve funds are
available or that the employer may or will receive or
develop new sources of revenue or increase existing
sources of revenue;
(G) the impact of any economic adjustments on the
employer's ability to pursue its educational mission;
(H) the present and future general economic
conditions in the locality and State;
(I) a comparison of the wages, hours, and
conditions of employment of the employees involved in
the arbitration proceeding with the wages, hours, and
conditions of employment of other employees performing

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similar services in public education in the 10 largest
cities in the United States;
(J) the average consumer prices in urban areas for
goods and services, which is commonly known as the
cost of living;
(K) the overall compensation presently received by
the employees involved in the dispute and by all other
employees who are employed by the educational
employer, including direct wage compensation;
vacations, holidays, and other excused time, insurance
and pensions, medical and hospitalization benefits,
the continuity and stability of employment and all
other benefits received, and how each party's proposed
compensation structure supports the educational goals
of the district;
(L) changes in any of the circumstances listed in
items (A) through (K) of this paragraph (8) during the
arbitration proceedings;
(M) the effect that any term the parties are at
impasse on has or may have on the overall educational
environment, learning conditions, and working
conditions with the school district; and
(N) the effect that any term the parties are at
impasse on has or may have in promoting the public
policy of this State.
No terms in the arbitration award or order may

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conflict with any terms and conditions set forth in a
collective bargaining agreement between the educational
employer and another collective bargaining representative.
(9) Arbitration procedures shall be deemed to be
initiated by the filing of a letter requesting mediation
as required under paragraph (1). The commencement of a new
fiscal year after the initiation of arbitration procedures
under this Act, but before the arbitration decision, or
its enforcement, shall not be deemed to render a dispute
moot, or to otherwise impair the jurisdiction or authority
of the arbitration panel or sole arbitrator or its
decision. Increases in rates of compensation awarded by
the arbitration panel or sole arbitrator may be effective
only at the start of the fiscal year next commencing after
the date of the arbitration award. If a new fiscal year has
commenced either since the initiation of arbitration
procedures under this Act or since any mutually agreed
extension of the statutorily required period of mediation
under this Act by the parties to the labor dispute causing
a delay in the initiation of arbitration, the foregoing
limitations shall be inapplicable, and such awarded
increases may be retroactive to the commencement of the
fiscal year, any other statute or charter provisions to
the contrary, notwithstanding. At any time the parties, by
stipulation, may amend or modify an award of arbitration.
(10) Orders of the arbitration panel or sole

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arbitrator shall be reviewable, upon appropriate petition
by either the educational employer or the exclusive
bargaining representative, by the circuit court for the
county in which the dispute arose or in which a majority of
the affected employees reside, but only for reasons that
the arbitration panel or sole arbitrator was without or
exceeded its statutory authority; the order is arbitrary,
or capricious; or the order was procured by fraud,
collusion, or other similar and unlawful means. Such
petitions for review must be filed with the appropriate
circuit court within 90 days following the issuance of the
arbitration order. The pendency of such proceeding for
review shall not automatically stay the order of the
arbitration panel or sole arbitrator. The party against
whom the final decision of any such court shall be
adverse, if such court finds such appeal or petition to be
frivolous, shall pay reasonable attorney's fees and costs
to the successful party as determined by said court in its
discretion. If said court's decision affirms the award of
money, such award, if retroactive, shall bear interest at
the rate of 12% per annum from the effective retroactive
date.
(11) During the pendency of proceedings before the
arbitration panel or sole arbitrator, existing wages,
hours, and other conditions of employment shall not be
changed by action of either party without the consent of

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the other but a party may so consent without prejudice to
the party's rights or position under this Act. The
proceedings are deemed to be pending before the
arbitration panel or sole arbitrator upon the initiation
of arbitration procedures under this Act.
(12) The educational employees covered by this Section
may not withhold services, nor may educational employers
lock out or prevent such employees from performing
services at any time.
(13) All of the terms decided upon by the arbitration
panel or sole arbitrator shall be included in an agreement
to be submitted to the educational employer's governing
body for ratification and adoption by law, ordinance, or
the equivalent appropriate means.
The governing body shall review each term decided by
the arbitration panel or sole arbitrator. If the governing
body fails to reject one or more terms of the arbitration
panel's or sole arbitrator's decision by a 3/5 vote of
those duly elected and qualified members of the governing
body, at the next regularly scheduled meeting of the
governing body after issuance, such term or terms shall
become a part of the collective bargaining agreement of
the parties. If the governing body affirmatively rejects
one or more terms of the arbitration panel's or sole
arbitrator's decision, it must provide reasons for such
rejection with respect to each term so rejected, within 20

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days of such rejection and the parties shall return to the
arbitration panel or sole arbitrator for further
proceedings and issuance of a supplemental decision with
respect to the rejected terms. Any supplemental decision
by an arbitration panel, sole arbitrator, or other
decision maker agreed to by the parties shall be submitted
to the governing body for ratification and adoption in
accordance with the procedures and voting requirements set
forth in this Section. The voting requirements of this
subsection shall apply to all disputes submitted to
arbitration pursuant to this Section notwithstanding any
contrary voting requirements contained in any existing
collective bargaining agreement between the parties.
(14) If the governing body of the employer votes to
reject the panel's or sole arbitrator's decision, the
parties shall return to the panel or sole arbitrator
within 30 days from the issuance of the reasons for
rejection for further proceedings and issuance of a
supplemental decision. All reasonable costs of such
supplemental proceeding including the exclusive
representative's reasonable attorney's fees, as
established by the Board, shall be paid by the educational
employer.
(15) Notwithstanding the provisions of this Section,
the educational employer and exclusive representative may
agree to submit unresolved disputes concerning wages,

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hours, terms, and conditions of employment to an
alternative form of impasse resolution.
(16) The costs of mediation and arbitration shall be
shared equally between the educational employer and the
exclusive bargaining agent, provided that for purposes of
mediation under this Act, if either party requests the use
of mediation services from the Federal Mediation and
Conciliation Service, the other party shall either join in
such request or bear the additional cost of mediation
services from another source. All other costs and expenses
of complying with this Section must be borne by the party
incurring them, except as otherwise expressly provided.
(17) If an educational employer or exclusive
bargaining representative refuses to participate in
mediation or arbitration when required by this Section,
the refusal shall be deemed a refusal to bargain in good
faith.
(18) Nothing in this Act prevents an employer and an
exclusive bargaining representative who are not subject to
mandatory arbitration under this Section from mutually
submitting to final and binding impartial arbitration
unresolved issues concerning the terms of a new collective
bargaining agreement.
This subsection (e) applies only to collective bargaining
agreements entered into, modified, extended, or renewed on or
after the effective date of this amendatory Act of the 103rd

10400SB3393ham003 - 485 - LRB104 17748 SPS 38499 a
General Assembly.
(Source: P.A. 103-1067, eff. 1-1-26.)
Section 45. The Broadband Infrastructure Advancement Act
is amended by changing Section 4-20 and by adding Section 4-30
as follows:
(220 ILCS 81/4-20)
Sec. 4-20. Use of other broadband funds. The Department of
Commerce and Economic Opportunity, the Office of Broadband, or
any other State agency, board, office, or commission
appropriated funding to provide grants for broadband
deployment, broadband expansion, broadband access, broadband
affordability, and broadband improvement projects must
establish program eligibility and selection criteria by
administrative rules.
The Department of Commerce and Economic Opportunity, when
evaluating grant applications for the deployment of broadband
network, must consider the expediency with which a project can
be completed and broadband Internet access service delivered.
Projects for which the Department awards grants to deploy
broadband service in unserved areas or underserved areas shall
include, as a project expense, costs necessarily incurred for
the acquisition of any license, easement, right-of-way, or
other property interest, or for the use of or for access to
public utility (as defined in Section 3-105 of the Public

10400SB3393ham003 - 486 - LRB104 17748 SPS 38499 a
Utilities Act) owned or State or local government owned
infrastructure or assets for such project that are used
directly in the provision of broadband service to locations in
such unserved or underserved areas.
If a grantee for the Connect Illinois Program or the
grantee's contractors intend to solicit bids for the
construction or development of the project, the grantee or the
contractor shall post the solicitation on a public website for
the duration of the solicitation period and for 30 days after
the close of the solicitation period. The grantee shall
provide the URL for the public website to the Department and
the Office of Broadband shall make one URL for each grantee
publicly available on the Office of Broadband's website. Each
bid solicitation by a grantee shall be posted to the same URL.
(Source: P.A. 104-426, eff. 8-15-25.)
(220 ILCS 81/4-30 new)
Sec. 4-30. Apprenticeship participation prioritization for
covered broadband projects.
(a) As used in this Section:
"Covered broadband project" means any broadband
infrastructure deployment project that receives, in whole or
in part, grant or loan funds administered by the Department of
Commerce and Economic Opportunity. "Covered broadband project"
does not include a project undertaken pursuant to the
Department's agreement with the National Telecommunications

10400SB3393ham003 - 487 - LRB104 17748 SPS 38499 a
and Information Administration under the Broadband Equity,
Access, and Deployment Program, 2022 Notice of Funding
Opportunity.
"Registered apprenticeship program" means a program
registered with and approved by the United States Department
of Labor Office of Apprenticeship under 29 CFR Parts 29 and 30
that covers one or more trades employed in the construction,
installation, or maintenance of a covered broadband project.
(b) The merit review scoring criteria for competitive
applications for award of a covered broadband project shall
include criteria to award points to projects that commit to
demonstrating on an ongoing basis a meaningful level of labor
hours intended to be performed by apprentices from registered
apprenticeship programs. If a covered broadband project that
made this commitment is awarded a grant, compliance with a
commitment made under this subsection shall be a continuing
condition of the award throughout the construction phase of
the project unless a waiver for apprentice participation has
been granted by the Department of Commerce and Economic
Opportunity under the Illinois Works Jobs Program Act.
(c) Each applicant for grant or loan funding for a covered
broadband project shall submit, with the initial application,
(i) a signed commitment to comply with the Illinois Works
Apprenticeship Initiative under the Illinois Works Jobs
Program Act and (ii) if the applicant intends to seek points on
the application based on a commitment to meet the requirements

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of subsection (b), a signed commitment of compliance with the
proposed meaningful participation of apprentices as described
in subsection (b). If submitted, the commitment of compliance
shall include information identifying the registered
apprenticeship programs under which construction work is
intended to be performed.
(d) The Office of Broadband shall include, in any
State-required report related to a covered broadband project,
a summary of:
(1) the number of covered broadband projects awarded
pursuant to the prioritization established in this
Section;
(2) the estimated total apprentice labor hours and the
actual total apprentice labor hours worked; and
(3) if applicable, enforcement actions taken,
including any fund recovery amounts.
(e) The Department of Commerce and Economic Opportunity
may adopt rules necessary to implement and administer this
Section.
(f) This Section does not apply to any federally-funded
broadband infrastructure deployment project to the extent
compliance is not allowable under the federal parameters for
the funding provided under an applicable broadband deployment
program.
Section 50. The Code of Civil Procedure is amended by

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adding Section 8-804.6 as follows:
(735 ILCS 5/8-804.6 new)
Sec. 8-804.6. Mediator and parties to mediation.
(a) A mediator or an agency employing a mediator shall not
be compelled to disclose, in any court or to any
administrative board or agency arbitration or proceeding,
whether civil or criminal, any mediation communications or
mediation documents received or created during a mediation.
Mediation communications and mediation documents shall not be
admissible as evidence in any action or proceeding, including,
but not limited to, a judicial, administrative, or arbitration
action or proceeding.
(b) A mediator may not testify about, use, or reveal any
information obtained during the course of a mediation in any
proceeding.
Section 55. The Workplace Transparency Act is amended by
changing Section 1-35 as follows:
(820 ILCS 96/1-35)
(Text of Section from P.A. 101-221)
Sec. 1-35. Costs and attorney's fees. An employee,
prospective employee, or former employee shall be entitled to
reasonable attorney's fees and costs incurred in challenging a
contract for violation of this Act upon a final,

10400SB3393ham003 - 490 - LRB104 17748 SPS 38499 a
non-appealable action in favor of the employee, prospective
employee, or former employee on the question of the validity
and enforceability of the contract.
(Source: P.A. 101-221, eff. 1-1-20.)
(Text of Section from P.A. 104-23)
Sec. 1-35. Compensatory damages, costs, and attorney's
fees. An employee, prospective employee, or former employee
shall be entitled to compensatory damages, in addition to
reasonable attorney's fees and costs incurred in challenging a
contract for violation of this Act upon a final,
non-appealable action in favor of the employee, prospective
employee, or former employee on the question of the validity
and enforceability of the contract or defending an action for
breach of a confidentiality agreement pursuant to this Act.
(Source: P.A. 104-23, eff. 1-1-26.)
(Text of Section from P.A. 104-320)
Sec. 1-35. Compensatory Consequential damages, costs, and
attorney's fees. An employee, prospective employee, or former
employee shall be entitled to compensatory consequential
damages, in addition to reasonable attorney's fees and costs
incurred in challenging a contract for violation of this Act
upon a final, non-appealable action in favor of the employee,
prospective employee, or former employee on the question of
the validity and enforceability of the contract or defending

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an action for breach of a confidentiality agreement pursuant
to this Act.
(Source: P.A. 104-320, eff. 1-1-26.)
Section 60. The Prevailing Wage Act is amended by changing
Sections 2, 3, and 5 and by adding Section 2.2 as follows:
(820 ILCS 130/2)
Sec. 2. This Act applies to the wages of laborers,
mechanics, and other workers employed in any public works, as
hereinafter defined, by any public body and to anyone under
contracts for public works. This includes any maintenance,
repair, assembly, or disassembly work performed on equipment
whether owned, leased, or rented.
As used in this Act, unless the context indicates
otherwise:
"Public works" means all fixed works constructed or
demolished by any public body, or paid for wholly or in part
out of public funds. "Public works" as defined herein includes
all projects financed in whole or in part with bonds, grants,
loans, or other funds made available by or through the State or
any of its political subdivisions, including, but not limited
to: bonds issued under the Industrial Project Revenue Bond Act
(Article 11, Division 74 of the Illinois Municipal Code), the
Industrial Building Revenue Bond Act, the Illinois Finance
Authority Act, the Illinois Sports Facilities Authority Act,

10400SB3393ham003 - 492 - LRB104 17748 SPS 38499 a
or the Build Illinois Bond Act; loans or other funds made
available pursuant to the Build Illinois Act; loans or other
funds made available pursuant to the Riverfront Development
Fund under Section 10-15 of the River Edge Redevelopment Zone
Act; funds received from the sale or transfer of tax credits
awarded by the State under Section 214 of the Illinois Income
Tax Act; or funds from the Fund for Illinois' Future under
Section 6z-47 of the State Finance Act, funds for school
construction under Section 5 of the General Obligation Bond
Act, funds authorized under Section 3 of the School
Construction Bond Act, funds for school infrastructure under
Section 6z-45 of the State Finance Act, and funds for
transportation purposes under Section 4 of the General
Obligation Bond Act. "Public works" also includes all federal
construction projects administered or controlled by a public
body if the prevailing rate of wages is equal to or greater
than the prevailing wage determination by the United States
Secretary of Labor for the same locality for the same type of
construction used to classify the federal construction
project. "Public works" also includes (i) all projects
financed in whole or in part with funds from the Environmental
Protection Agency under the Illinois Renewable Fuels
Development Program Act for which there is no project labor
agreement; (ii) all work performed pursuant to a public
private agreement under the Public Private Agreements for the
Illiana Expressway Act or the Public-Private Agreements for

10400SB3393ham003 - 493 - LRB104 17748 SPS 38499 a
the South Suburban Airport Act; (iii) all projects undertaken
under a public-private agreement under the Public-Private
Partnerships for Transportation Act or the Department of
Natural Resources World Shooting and Recreational Complex Act;
and (iv) all transportation facilities undertaken under a
design-build contract or a Construction Manager/General
Contractor contract under the Innovations for Transportation
Infrastructure Act. "Public works" also includes all projects
at leased facility property used for airport purposes under
Section 35 of the Local Government Facility Lease Act. "Public
works" also includes the construction of a new wind power
facility by a business designated as a High Impact Business
under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone
Act, the construction of a new utility-scale solar power
facility by a business designated as a High Impact Business
under Section 5.5(a)(3)(E-5) of the Illinois Enterprise Zone
Act, the construction of a new battery energy storage solution
facility by a business designated as a High Impact Business
under Section 5.5(a)(3)(I) of the Illinois Enterprise Zone
Act, and the construction of a high voltage direct current
converter station by a business designated as a High Impact
Business under Section 5.5(a)(3)(J) of the Illinois Enterprise
Zone Act. "Public works" also includes electric vehicle
charging station projects financed pursuant to the Electric
Vehicle Act and renewable energy projects required to pay the
prevailing wage pursuant to the Illinois Power Agency Act.

10400SB3393ham003 - 494 - LRB104 17748 SPS 38499 a
"Public works" also includes power washing projects by a
public body or paid for wholly or in part out of public funds
in which steam or pressurized water, with or without added
abrasives or chemicals, is used to remove paint or other
coatings, oils or grease, corrosion, or debris from a surface
or to prepare a surface for a coating. "Public works" also
includes all electric transmission systems projects subject to
the Electric Transmission Systems Construction Standards Act.
"Public works" does not include work done directly by any
public utility company, whether or not done under public
supervision or direction, or paid for wholly or in part out of
public funds. "Public works" also includes construction
projects performed by a third party contracted by any public
utility, as described in subsection (a) of Section 2.1, in
public rights-of-way, as defined in Section 21-201 of the
Public Utilities Act, whether or not done under public
supervision or direction, or paid for wholly or in part out of
public funds. "Public works" also includes construction
projects that exceed 15 aggregate miles of new fiber optic
cable, performed by a third party contracted by any public
utility, as described in subsection (b) of Section 2.1, in
public rights-of-way, as defined in Section 21-201 of the
Public Utilities Act, whether or not done under public
supervision or direction, or paid for wholly or in part out of
public funds. "Public works" also includes any corrective
action performed pursuant to Title XVI of the Environmental

10400SB3393ham003 - 495 - LRB104 17748 SPS 38499 a
Protection Act for which payment from the Underground Storage
Tank Fund is requested. "Public works" also includes all
construction projects involving fixtures or permanent
attachments affixed to light poles that are owned by a public
body, including street light poles, traffic light poles, and
other lighting fixtures, whether or not done under public
supervision or direction, or paid for wholly or in part out of
public funds, unless the project is performed by employees
employed directly by the public body. "Public works" also
includes work performed subject to the Mechanical Insulation
Energy and Safety Assessment Act. "Public works" also includes
the removal, hauling, and transportation of biosolids, lime
sludge, and lime residue from a water treatment plant or
facility and the disposal of biosolids, lime sludge, and lime
residue removed from a water treatment plant or facility at a
landfill. "Public works" also includes sewer inspection
projects that use a closed-circuit television to identify
issues in a sewer system, such as cracks in pipes, root
intrusion, blockages, or other structural damage. "Public
works" also includes the routine inspection or testing of any
fire sprinkler system, as defined in Section 10 of the Fire
Sprinkler Contractor Licensing Act, when performed by a third
party under contract with a public body or when paid for wholly
or in part out of public funds. "Public works" also includes
the installation, service, maintenance, on-site programming,
configuration, calibration, commissioning, repair, or

10400SB3393ham003 - 496 - LRB104 17748 SPS 38499 a
integration of a building automation system used to monitor or
control heating, ventilation, air conditioning, hydronic,
steam, or other mechanical building systems when performed by
a third party under contract with a public body or paid for
wholly or in part out of public funds. "Public works" does not
include projects undertaken by the owner at an owner-occupied
single-family residence or at an owner-occupied unit of a
multi-family residence. "Public works" does not include work
performed for soil and water conservation purposes on
agricultural lands, whether or not done under public
supervision or paid for wholly or in part out of public funds,
done directly by an owner or person who has legal control of
those lands. "Public works" does not include routine
inspection or testing performed by employees of the State, a
municipality, a county, a fire department, a fire protection
district, or the Office of the State Fire Marshal when those
employees perform the inspection or testing in the course of
their official duties as described in subsection (c) of
Section 17 of the Fire Sprinkler Contractor Licensing Act.
"Public works" does not include work performed by a licensed
professional engineer practicing in accordance with the
Professional Engineering Practice Act of 1989.
"Construction" means all work on public works involving
laborers, workers or mechanics. This includes any maintenance,
repair, assembly, or disassembly work performed on equipment
whether owned, leased, or rented.

10400SB3393ham003 - 497 - LRB104 17748 SPS 38499 a
"Locality" means the county where the physical work upon
public works is performed, except (1) that if there is not
available in the county a sufficient number of competent
skilled laborers, workers and mechanics to construct the
public works efficiently and properly, "locality" includes any
other county nearest the one in which the work or construction
is to be performed and from which such persons may be obtained
in sufficient numbers to perform the work and (2) that, with
respect to contracts for highway work with the Department of
Transportation of this State, "locality" may at the discretion
of the Secretary of the Department of Transportation be
construed to include two or more adjacent counties from which
workers may be accessible for work on such construction.
"Public body" means the State or any officer, board or
commission of the State or any political subdivision or
department thereof, or any institution supported in whole or
in part by public funds, and includes every county, city,
town, village, township, school district, irrigation, utility,
reclamation improvement or other district and every other
political subdivision, district or municipality of the state
whether such political subdivision, municipality or district
operates under a special charter or not.
"Labor organization" means an organization that is the
exclusive representative of an employer's employees recognized
or certified pursuant to the National Labor Relations Act.
The terms "general prevailing rate of hourly wages",

10400SB3393ham003 - 498 - LRB104 17748 SPS 38499 a
"general prevailing rate of wages" or "prevailing rate of
wages" when used in this Act mean the hourly cash wages plus
full journeyman annualized fringe benefits for training and
apprenticeship programs registered with the Office of
Apprenticeship within the U.S. Department of Labor's
Employment and Training Administration with full journeymen
annualized fringe benefits for health and welfare, insurance,
vacations, and pensions paid generally, in the locality in
which the work is being performed, to employees engaged in
work of a similar character on public works.
(Source: P.A. 103-8, eff. 6-7-23; 103-327, eff. 1-1-24;
103-346, eff. 1-1-24; 103-359, eff. 7-28-23; 103-447, eff.
8-4-23; 103-605, eff. 7-1-24; 103-1066, eff. 2-20-25; 104-17,
eff. 7-1-26 (see Section 35-5 of P.A. 104-434 for effective
date of P.A. 104-17); 104-23, eff. 6-30-25; 104-160, eff.
8-14-25; revised 12-2-25.)
(820 ILCS 130/2.2 new)
Sec. 2.2. Multiple classifications. A laborer, mechanic,
or other worker entitled to prevailing wages under this Act
who is classified under 2 or more prevailing wage
classifications in certified payroll on a single public works
project shall be paid the higher applicable prevailing wage
rate for all subsequent hours worked on that project,
beginning on the date the higher classification is assigned
and continuing through the end of the worker's employment on

10400SB3393ham003 - 499 - LRB104 17748 SPS 38499 a
the project.
(820 ILCS 130/3) (from Ch. 48, par. 39s-3)
Sec. 3. Not less than the general prevailing rate of
hourly wages for work of a similar character on public works in
the locality in which the work is performed, and not less than
the general prevailing rate of hourly wages for legal holiday
and overtime work, shall be paid to all laborers, workers, and
mechanics employed by or on behalf of any public body engaged
in the construction or demolition of public works. This
includes any maintenance, repair, assembly, or disassembly
work performed on equipment whether owned, leased, or rented
and, notwithstanding any other provision of this Act, applies
to field mechanics, technicians, or similar positions,
including time spent transporting parts, materials, or
equipment to and from a site, regardless of whether the person
is employed by a contractor, subcontractor, seller, or
supplier. Only such laborers, workers and mechanics as are
directly employed by contractors or subcontractors in actual
construction work on the site of the building or construction
job, and laborers, workers and mechanics engaged in the
transportation of materials and equipment to or from the site,
but not including the transportation by the sellers and
suppliers or the manufacture or processing of materials or
equipment, in the execution of any contract or contracts for
public works with any public body shall be deemed to be

10400SB3393ham003 - 500 - LRB104 17748 SPS 38499 a
employed upon public works. The wage for a tradesman
performing maintenance is equivalent to that of a tradesman
engaged in construction or demolition.
(Source: P.A. 95-341, eff. 8-21-07; 96-186, eff. 1-1-10.)
(820 ILCS 130/5) (from Ch. 48, par. 39s-5)
Sec. 5. Certified payroll.
(a) Any contractor and each subcontractor who participates
in public works shall:
(1) make and keep, for a period of not less than 3
years from the date of the last payment made before
January 1, 2014 (the effective date of Public Act 98-328)
and for a period of 5 years from the date of the last
payment made on or after January 1, 2014 (the effective
date of Public Act 98-328) on a contract or subcontract
for public works, records of all laborers, mechanics, and
other workers employed by them on the project; the records
shall include (i) the worker's name, (ii) the worker's
address, (iii) the worker's telephone number when
available, (iv) the last 4 digits of the worker's social
security number, (v) the worker's gender, (vi) the
worker's race, (vii) the worker's ethnicity, (viii)
veteran status, (ix) the worker's classification or
classifications, (x) the worker's skill level, such as
apprentice or journeyman, (xi) the worker's gross and net
wages paid in each pay period, (xii) the worker's number

10400SB3393ham003 - 501 - LRB104 17748 SPS 38499 a
of hours worked each day, (xiii) the worker's starting and
ending times of work each day, (xiv) the worker's hourly
wage rate, (xv) the worker's hourly overtime wage rate,
(xvi) the worker's hourly fringe benefit rates, (xvii) the
name and address of each fringe benefit fund, (xviii) the
plan sponsor of each fringe benefit, if applicable, and
(xix) the plan administrator of each fringe benefit, if
applicable, and (xx) copies of the contractor's or
subcontractor's registered apprenticeship program
documentation, including the United States Department of
Labor registered apprenticeship program number, and, for
each apprentice employed by the contractor or
subcontractor on the public works project, documentation
sufficient to verify that the apprentice is registered in
good standing in the applicable registered apprenticeship
program; and
(2) no later than the 15th day of each calendar month
file a certified payroll for the immediately preceding
month with the public body in charge of the project until
the Department of Labor activates the database created
under Section 5.1 at which time certified payroll shall
only be submitted to that database, except for projects
done by State agencies that opt to have contractors submit
certified payrolls directly to that State agency. A State
agency that opts to directly receive certified payrolls
must submit the required information in a specified

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electronic format to the Department of Labor no later than
10 days after the certified payroll was filed with the
State agency. A certified payroll must be filed for only
those calendar months during which construction on a
public works project has occurred. The certified payroll
shall consist of a complete copy of the records identified
in paragraph (1) of this subsection (a), but may exclude
the starting and ending times of work each day and any
copies of the contractor's registered apprenticeship
programs documentation. The certified payroll shall
contain all other information identified in paragraph (1)
pertaining to apprentices. The certified payroll shall be
accompanied by a statement signed by the contractor or
subcontractor or an officer, employee, or agent of the
contractor or subcontractor which avers that: (i) he or
she has examined the certified payroll records required to
be submitted by the Act and such records are true and
accurate; (ii) the hourly rate paid to each worker is not
less than the general prevailing rate of hourly wages
required by this Act; and (iii) the contractor or
subcontractor is aware that filing a certified payroll
that he or she knows to be false is a Class A misdemeanor.
A general contractor is not prohibited from relying on the
certification of a lower tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification. Any contractor or

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subcontractor subject to this Act and any officer,
employee, or agent of such contractor or subcontractor
whose duty as such officer, employee, or agent it is to
file such certified payroll who willfully fails to file
such a certified payroll on or before the date such
certified payroll is required by this paragraph to be
filed and any person who willfully files a false certified
payroll that is false as to any material fact is in
violation of this Act and guilty of a Class A misdemeanor.
The public body in charge of the project shall keep the
records submitted in accordance with this paragraph (2) of
subsection (a) before January 1, 2014 (the effective date
of Public Act 98-328) for a period of not less than 3
years, and the records submitted in accordance with this
paragraph (2) of subsection (a) on or after January 1,
2014 (the effective date of Public Act 98-328) for a
period of 5 years, from the date of the last payment for
work on a contract or subcontract for public works or
until the Department of Labor activates the database
created under Section 5.1, whichever is less. After the
activation of the database created under Section 5.1, the
Department of Labor rather than the public body in charge
of the project shall keep the records and maintain the
database. The records submitted in accordance with this
paragraph (2) of subsection (a) shall be considered public
records, except an employee's address, telephone number,

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social security number, race, ethnicity, and gender, and
made available in accordance with the Freedom of
Information Act. The public body shall accept any
reasonable submissions by the contractor that meet the
requirements of this Section.
A contractor, subcontractor, or public body may retain
records required under this Section in paper or electronic
format.
(b) Upon 7 business days' notice, the contractor and each
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in paragraph (1) of subsection (a) of this
Section to the public body in charge of the project, its
officers and agents, the Director of Labor and his deputies
and agents, and to federal, State, or local law enforcement
agencies and prosecutors.
(c) A contractor or subcontractor who remits contributions
to fringe benefit funds that are jointly maintained and
jointly governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act shall make and keep certified payroll records
that include the information required under items (i) through
(viii) of paragraph (1) of subsection (a) only. However, the
information required under items (ix) through (xv) of
paragraph (1) of subsection (a) shall be required for any
contractor or subcontractor who remits contributions to a

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fringe benefit fund that is not jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act.
(d) Any contractor or subcontractor subject to this Act
and any officer, employee, or agent of the contractor or
subcontractor whose duty as the officer, employee, or agent is
to file the certified payroll, who the Department of Labor
finds has failed to file the certified payroll for any public
works project as required under this Act, is subject to a civil
penalty, payable to the Department of Labor, of up to $1,000
for a first offense and up to $2,000 for a second or subsequent
offense no more than 5 years after the first offense. A second
or subsequent offense that occurs more than 5 years after the
first offense shall be considered a first offense. Each month
in which a violation of this Section occurs shall constitute a
separate offense.
A finding of an offense by the Department of Labor for
failure to file the certified payroll may be challenged if a
request for administrative hearing is received no later than
10 business days after receipt of the notice of the offense.
The Department of Labor shall have the burden of establishing
good cause for its action. Good cause exists if the Department
of Labor establishes that the contractor or subcontractor
participated in a public works project under this Act and
failed to submit a certified payroll to the Department of

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Labor's electronic database no later than 15 calendar days
after the immediately preceding month in which the public
works were performed by the contractor or subcontractor. Any
mitigating evidence that a contractor or subcontractor
attempted to timely submit certified payrolls to the
Department of Labor's electronic database but failed due to
technical issues shall be considered. A contractor or
subcontractor's lack of knowledge of the requirements of this
Section shall not be considered as mitigating evidence.
All hearings held under this Section shall comply with the
Illinois Administrative Procedure Act and the Department of
Labor's rules for administrative hearings. The final
administrative decision by the Department of Labor shall be
rendered after the conclusion of the hearing. A final
administrative decision made under this Section is subject to
the Administrative Review Law. If a final administrative
decision issued by the Department of Labor requires a
contractor or subcontractor to pay a civil penalty, and the
subcontractor or contractor has not: (i) made the required
payment within 35 days after the issuance of the final
administrative decision; or (ii) timely filed a complaint
seeking review of the final administrative decision within 35
days after the issuance of the final administrative decision
in a court of competent jurisdiction, the Department of Labor,
by and through the Office of the Attorney General, may file a
verified petition against the contractor or subcontractor to

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enforce the final administrative decision and to collect any
amounts due in the circuit court of any county where an office
of the Department of Labor is located.
(Source: P.A. 104-23, eff. 6-30-25.)
Section 65. The Paid Leave for All Workers Act is amended
by changing Section 10 as follows:
(820 ILCS 192/10)
Sec. 10. Definitions. As used in this Act:
"Construction industry" means any constructing, altering,
reconstructing, repairing, rehabilitating, refinishing,
refurbishing, remodeling, remediating, renovating, custom
fabricating, maintenance, landscaping, improving, wrecking,
painting, decorating, demolishing, or adding to or subtracting
from any building, structure, highway, roadway, street,
bridge, alley, sewer, ditch, sewage disposal plant,
waterworks, parking facility, railroad, excavation or other
structure, project, development, real property, or
improvement, or to do any part thereof, whether or not the
performance of the work herein described involves the addition
to or fabrication into, any structure, project, development,
real property, or improvement herein described of any material
or article of merchandise.
"Construction industry" also includes moving construction
related materials on the job site or to or from the job site,

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snow plowing, snow removal, and refuse collection.
"Department" means the Illinois Department of Labor.
"Domestic work" and "domestic worker" have the same
meanings as defined in Section 10 of the Domestic Workers'
Bill of Rights Act, except that "domestic worker" also
includes independent contractors, sole proprietors, and
partnerships.
"Employee" has the same application and meaning as that
provided in Sections 1 and 2 of the Illinois Wage Payment and
Collection Act. "Employee" also includes all domestic workers,
and, for the purposes of this Act, domestic workers shall not
be excluded as employees under the provisions of item (1),
(2), or (3) of Section 2 of the Illinois Wage Payment and
Collection Act. "Employee" does not include:
(1) an employee as defined in the federal Railroad
Unemployment Insurance Act (45 U.S.C. 351 et seq.) or the
Railway Labor Act;
(2) a student enrolled in and regularly attending
classes in a college or university that is also the
student's employer, and who is employed on a temporary
basis at less than full time at the college or university,
but this exclusion applies only to work performed for that
college or university; or
(3) a short-term employee who is employed by an
institution of higher education for less than 2
consecutive calendar quarters during a calendar year and

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who does not have a reasonable expectation that they will
be rehired by the same employer of the same service in a
subsequent calendar year; or .
(4) an employee employed as a crew member of a towing
vessel as defined by 46 CFR 136.105.
"Employer" has the same application and meaning as that
provided in Sections 1 and 2 of the Illinois Wage Payment and
Collection Act, except that for purposes of this Act,
"employer" also means the State and units of local government,
any political subdivision of the State or units of local
government, or any State or local government agency.
"Employer" does not include school districts organized
under the School Code or park districts organized under the
Park District Code.
"Writing" or "written" means a printed or printable
communication in physical or electronic format, including a
communication that is transmitted through electronic mail,
text message, or a computer system or is otherwise sent or
stored electronically.
(Source: P.A. 102-1143, eff. 1-1-24.)
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes

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made by this Act or (ii) provisions derived from any other
Public Act.
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99. Effective date. This Act takes effect upon
becoming law.".