Bill Text: IL HB0804 | 2021-2022 | 102nd General Assembly | Engrossed

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Bill Title: Creates the Clean Jobs, Workforce and Contractor Equity Act. Creates the Equity and Empowerment in Clean Energy Advisory Board to administer the Clean Jobs Workforce Hubs Program, the Expanding Clean Energy Entrepreneurship and Contractor Incubator Network Program, the Returning Residents Clean Jobs Training Program, and the Illinois Clean Energy Black, Indigenous, and People of Color Primes Contractor Accelerator. Creates the Illinois Clean Energy Jobs and Justice Fund Act, the Community Energy, Climate, and Jobs Planning Act, the Energy Community Reinvestment Act, the Clean Energy Empowerment Zone Tax Credit Act, the Coal Severance Fee Act, the Building Energy Performance Standard Act, and the Public Utilities Intervenor Compensation Act. Amends the Illinois Administrative Procedure Act to allow for emergency rulemaking. Amends the State Finance Act to create the Energy Community Reinvestment Fund, the Illinois Commerce Commission Intervenor Compensation Fund, and the Illinois Clean Energy Jobs and Justice Fund. Amends the Electric Vehicle Act, the Energy Efficient Building Act, the Illinois Power Agency Act, the Illinois Income Tax Act, the Retailers' Occupation Tax Act, the School Code, the Public Utilities Act, the Environmental Protection Act, the Illinois Nuclear Facility Safety Act, and the Prevailing Wage Act by making changes to implement certain programs. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 47-0)

Status: (Introduced - Dead) 2021-05-26 - Added Co-Sponsor Rep. Jehan Gordon-Booth [HB0804 Detail]

Download: Illinois-2021-HB0804-Engrossed.html

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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Article 1. Findings
Section 1-5. Findings. The General Assembly finds that:
(a) The growing clean energy economy in Illinois can be a
vehicle for expanding equitable access to public health,
safety, a cleaner environment, quality jobs, economic
opportunity, and wealth-building, particularly in economically
disadvantaged communities and communities of black,
indigenous, and people of color that have had to bear the
disproportionate burden of dirty fossil fuel pollution.
(b) Placing Illinois on a path to 100% renewable energy is
vital to a clean energy future. To bring this vision to
fruition, our energy policy must prioritize a just transition
that incentivizes renewable development and other
carbon-reducing policies, such as energy efficiency,
beneficial electrification, and peak demand reduction, while
ensuring that the benefits and opportunities of a carbon-free
future are accessible in economically disadvantaged
communities, environmental justice communities, and
communities of black, indigenous, and people of color.
(c) In the wake of federal reversals on climate action,

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the State of Illinois should pursue immediate action on
policies that will ensure a just and responsible phase out of
fossil fuels from the power sector to reduce harmful emissions
from Illinois power plants, support power plant communities
and workers, and allow the clean energy economy to continue
growing in every corner of Illinois.
(d) Energy efficiency should form the basis of any robust
clean energy policy. It is the cheapest clean energy resource,
and efficiency upgrades help customers manage their energy
bills directly by reducing the energy they need, and
indirectly by holding demand and prices down statewide.
(e) The transportation sector is now the leading source of
carbon pollution in Illinois, responsible for roughly
one-third of all carbon emissions. The State of Illinois
should set forth an ambitious goal to remove the equivalent of
more than 1,000,000 gasoline and diesel-powered vehicles from
our roads by quickly implementing new policies that expand
access to transit, promote walking and biking mobility, and
increase electric vehicle adoption. If managed appropriately,
electric vehicle adoption will drastically reduce emissions
from transportation, and could save Illinois residents
billions of dollars.
(f) In addition to better air quality and a safer climate,
Illinois residents who do not use electric vehicles also
benefit from greater adoption through lower electric bills
resulting from the greater use of the electric grid during

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off-peak hours.
(g) The State of Illinois should set forth an ambitious
goal to transition all vehicle fleets operated by or on behalf
of public agencies to full electric power. The transition to
zero-emission fleets should be leveraged to promote increased
investment in domestic manufacturing capacity within the
emerging electric vehicle industry. The resulting new,
high-skilled production jobs can also provide pathways into
the middle class for racially, economically, and
geographically marginalized communities. When procuring
electric vehicles, public agencies shall use high-road
economic development standards, like the U.S. Employment Plan.
By using the U.S. Employment Plan or a Local Employment Plan,
public agencies will incentivize electric vehicle companies to
create and retain high-skilled manufacturing jobs with living
wages and benefits; invest in domestic manufacturing
facilities; and propose plans to recruit, train, and hire
workers who face structural barriers to family-sustaining jobs
and career pathways.
(h) Energy storage, such as batteries, can provide many
services to the electricity grid that benefit the grid,
including managing (or shaving) peak load, frequency
regulation, voltage support, reserve capacity, and black-start
capability. If that storage facilitates greater use of
renewables, it can allow for more clean energy to be
accessible, reduce pollution, and provide multiple benefits.

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(i) Illinois needs to adopt a broad-based policy approach
to decarbonize Illinois' electric sector (including
electricity production and consumption) in a just and
equitable manner that puts our State on track to phase out
carbon dioxide emitting power plants by 2030.
(j) Illinois' policy approach must ensure the reduction of
co-pollutant emissions that cause serious local health
impacts, prioritizing environmental justice communities near
power plants.
(k) As we decarbonize Illinois' electric sector, Illinois
must create new investment to stimulate the economic and
environmental well-being of communities disproportionately
impacted by the historical operation of, and recent or
expected closures of, fossil fuel power plants and coal mining
operations.
(l) On January 23, 2019, Governor Pritzker signed an
executive order committing Illinois as a signatory to the U.S.
Climate Alliance to reduce state-based greenhouse gas
emissions consistent with the 2015 Paris Agreement. This
commitment identifies natural and working lands as a principal
initiative to meet the associated carbon emissions reduction
targets for Illinois. As Illinois works to reduce carbon
emissions from the power generation and transportation
sectors, Illinois can also lead the nation in recognizing the
benefits of nature as a tool to both mitigate and adapt to
climate change.

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Article 5. Clean Jobs, Workforce and Contractor Equity Act
Part 1. Governance
Section 5-101. Short title. This Article may be cited as
the Clean Jobs, Workforce and Contractor Equity Act.
Section 5-105. Findings.
(a) The General Assembly finds that the clean energy jobs
sector, including renewables, energy efficiency, energy
storage, and other related fields, is a growing sector in the
State of Illinois and that programs to support a growing
workforce and robust businesses in this sector would benefit
from a centralized structure for community input and oversight
and regional program administration to reduce costs, support
knowledge sharing, and facilitate access to the programs.
(b) The General Assembly finds that the State of Illinois
should build upon the success of the Future Energy Jobs Act and
the Illinois Solar for All program by further expanding
statewide equitable access to quality training, jobs, and
economic opportunities across the entire clean energy sector
in and throughout Illinois, including solar, wind, energy
efficiency, transportation electrification, and other related
clean energy industries, especially for members of the
following communities across the State to enter and complete

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the career pipeline for clean energy jobs, with the goal of
serving all of the following groups distributed across the
network: (i) low-income persons and families; (ii) persons
residing in environmental justice communities; (iii) BIPOC
persons; (iv) justice-involved persons; (v) persons who are or
were in the child welfare system; (vi) energy workers; (vii)
members of any of these groups who are also women,
transgender, or gender nonconforming persons; and (viii)
members of any of these groups who are also youth, especially
those who have had to bear the disproportionate burden of
dirty fossil fuel pollution. The General Assembly further
finds that the programs included in the Clean Jobs, Workforce
and Contractor Equity Act are essential to equitable,
statewide access to quality training, jobs, and economic
opportunities across the clean energy sector.
(c) The General Assembly finds that the State of Illinois
should build upon the success of the Future Energy Jobs Act and
the Illinois Solar for All program by ensuring small, BIPOC
clean energy businesses and contractors have equitable access
to economic opportunities, including new clean energy jobs and
investment created by the growing clean energy sector in
Illinois.
(d) The General Assembly finds that serious challenges are
posed for Illinois small business owners due to income and
wealth disparities, that market barriers disproportionately
impact BIPOC contractors and small business owners, obtaining

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certifications and program qualifications are an essential
part of doing business in the clean energy economy and that
discriminatory lending policies limit these businesses' access
to capital.
(1) This finding is informed by a July 2020 analysis
of 2018 U.S. Census American Community Survey data by the
Center for American Progress which found that "while Black
Americans make up 13 percent of the U.S. population, they
own less than 2 percent of small businesses with
employees. By contrast, white Americans make up 60 percent
of the U.S. population but own 82 percent of small
employer firms. If Black Americans enjoyed the same
business ownership and success rates as their white
counterparts, there would be approximately 860,000
additional Black-owned firms employing more than 10
million people." (A Blueprint for Revamping the Minority
Business Development Agency, Center for American Progress
July 31, 2020).
(2) This finding is also informed by the Federal
Reserve Bank of Atlanta's December 2019 Small Business
Credit Survey which examined and found disparities in
reliance on personal funds/credit scores, loan application
outcomes, reliance on higher cost and lower transparency
credit products, loan approval rates and lender
satisfaction. The survey concluded "Minority-owned firms
more frequently reported financial challenges.

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Seventy-eight percent of Black-owned firms, and 69% of
Asian- and Hispanic-owned firms did so, compared to 62% of
White-owned businesses." (Small Business Credit Survey
2019 Report on Minority-Owned Firms, Federal Reserve Bank
of Atlanta, December 2019).
(3) The General Assembly further finds that these
disparities continue as businesses develop. This finding
is informed by a December 2016 Stanford Institute for
Economic Policy Research study that concluded "We find
that African-American business ventures start smaller in
terms of overall financial capital and invest capital at a
slower rate in the years following startup. This means
that funding differences present at the firm's founding
persist and even worsen over time."
(4) For these reasons, the Illinois Clean Energy
Black, Indigenous, and People of Color Primes Contractor
Accelerator Program is narrowly tailored to encourage and
sustain the growth of BIPOC contractors in the Illinois
clean energy economy through individualized coaching,
specialized training, mentorships with established clean
energy firms, operational support, appropriate business
certifications and program enrollments and access to
capital.
(e) The General Assembly finds that the clean energy jobs
sector, including renewables, energy efficiency, energy
storage, and other related fields, is a growing sector in the

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State of Illinois, that returning residents will be well
served by considering employment in this field, and that the
residents of the State of Illinois will benefit from the
continued growth of jobs in this sector.
Section 5-110. Power of the Department. The Department may
adopt such rules as the Director deems necessary to carry out
the purposes of this Act.
Section 5-115. Definitions. As used in this Act:
"Advisory Board" means the Equity and Empowerment in Clean
Energy Advisory Board as established in this Act.
"Black, indigenous, and people of color" and "BIPOC" are
defined as people who are members of the groups described in
subparagraphs (a) through (e) of paragraph (A) of subsection
(1) of Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
"Clean Energy Jobs" means jobs in the solar energy, wind
energy, energy efficiency, solar thermal, geothermal, and
electric vehicle industries, and other renewable energy
industries, including related industries that manufacture,
develop, build, maintain, or provide ancillary services to
renewable energy resources or energy efficiency products or
services, including the manufacture and installation of
healthier building materials that contain fewer hazardous
chemicals. "Clean Energy Jobs" include administrative, sales,

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and other support functions within these industries.
"Community-based organization" means an organization in
which:
(1) the majority of the governing body consists of
local residents;
(2) at least one main operating office is in the
community;
(3) priority issue areas are identified and defined by
local residents;
(4) solutions to address priority issues are developed
with local residents; and
(5) organizational program design, implementation, and
evaluation components have local residents intimately
involved in leadership positions in the organization.
"Department" means the Department of Commerce and Economic
Opportunity, unless the text solely specifies a particular
Department.
"Director" means the director of the Department of
Commerce and Economic Opportunity.
"Energy Efficiency" has the meaning set forth in Section
1-10 of the Illinois Power Agency Act.
"Energy worker" has the meaning set forth in Section 20-10
of the Energy Community Reinvestment Act.
"Environmental Justice Community" means the definition of
that term based on existing methodologies and findings, used
as may be updated by the Illinois Power Agency and its program

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administrator in the Illinois Solar for All program.
"Low-income" means persons and households whose income
does not exceed 80% of the area median income, adjusted for
family size and revised every 2 years.
"Primes Program Administrator" means the entity defined as
such by Part 15 of this Act.
"Regional Administrator" means the entities selected
according to Section 5-130 of this Act.
"Regional Primes Program Lead" means the entities defined
as such by Part 15 of this Act.
"Renewable energy resources" has the meaning set forth in
Section 1-10 of the Illinois Power Act.
Section 5-120. Purpose. The Equity and Empowerment in
Clean Energy Advisory Board shall be established to advise and
assist the Illinois Department of Commerce and Economic
Opportunity in its efforts to administer the following
programs as set forth in this Act: the Clean Jobs Workforce
Hubs Program; the Expanding Clean Energy Entrepreneurship and
Contractor Incubator Network Program; the Returning Residents
Clean Jobs Training Program; and the Illinois Clean Energy
Black, Indigenous, and People of Color Primes Contractor
Accelerator. The Illinois Department of Commerce and Economic
Opportunity shall contract with 3 Regional Administrators as
described in this Part to assist in the implementation of
several of these programs, and shall develop a system of

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performance management and corrective action applicable to
these programs.
Section 5-125. Equity and Empowerment in Clean Energy
Advisory Board.
(a) Purpose. To ensure success and equity in the clean
energy industry in Illinois, the General Assembly hereby
creates an Equity and Empowerment in Clean Energy Advisory
Board to oversee and advise the Department on the
administration of the following programs set forth in this
Act:
(1) the Clean Jobs Workforce Hubs Program;
(2) the Expanding Clean Energy Entrepreneurship and
Contractor Incubator Network Program;
(3) the Returning Residents Clean Jobs Training
Program; and
(4) the Illinois Clean Energy Black, Indigenous, and
People of Color Primes Contractor Accelerator.
(b) Meetings. The Department shall provide administrative
support for and convene the Equity and Empowerment in Clean
Energy Advisory Board within 90 days after the effective date
of this Act. The Department shall convene at least one meeting
of the Advisory Board every quarter. All meetings shall be
accessible, with rotating locations, call-in and
videoconference options, and materials and agendas circulated
well in advance, and there shall also be opportunities for

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input outside of meetings from those with limited capacity and
ability to attend, via one-on-one meetings, surveys, and calls
subject to compliance with the Open Meetings Act.
(c) Duties. The Advisory Board:
(1) shall review reported program performance metrics,
and may recommend harmonizing metrics across programs and
additional metrics for collection, including, but not
limited to, metrics tailored to a specific program or
program delivery area;
(2) shall ensure program performance metrics are
published and available to the public within 30 days after
each advisory board meeting. Program performance metrics
may be anonymized where necessary to prevent disclosure of
private information about individuals. The Department
shall also post Advisory Board meeting minutes on its
website within 14 days after Board approval;
(3) shall ensure that notices of open requests for
proposals and other business opportunities associated with
the programs are widely circulated and available in the
communities where each program is located and among
communities who benefit from the programs;
(4) shall develop recommendations at least once every
3 months to aid the Department, program implementers, and
other program partners in tracking and improving the
performance of the Program;
(5) shall provide recommendations to the Department,

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program implementers, and other program partners to
troubleshoot emergent challenges and identify emergent
opportunities to improve the delivery of program elements
in addition to those captured in collected metrics. The
recommendations may be targeted toward any level or
geographic area of implementation;
(6) shall collaborate with the Board Liaison,
Department, and other program partners and vendors to
inform updates to the public about Advisory Board
activities;
(7) shall advise the Department, Regional
Administrators, and Primes Program Administrator on the
development of dispute resolution processes; and
(8) shall perform any other duties assigned to it by
this Act.
(d) Composition and Terms. The Department shall appoint
the Advisory Board within 90 days after the effective date of
this Act and shall appoint new Advisory Board members as
members' terms expire or members leave the Board. Members of
the Advisory Board shall serve without compensation, but may
be reimbursed for their reasonable and necessary expenses
incurred in performing their duties. The Department shall
provide administrative support to the Advisory Board,
including the selection of a Department staff member to serve
as a Board Liaison between the Department and the Advisory
Board. The Department shall appoint interim members to the

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Advisory Board upon departures of members. The Advisory Board
shall consist of the following 15 members that reflects the
diversity and demographics of the State of Illinois:
(1) 2 low-income persons residing in communities
listed in paragraphs (1) through (3) in subsection (b) of
Section 5-130 of this Part;
(2) 2 residents of Environmental Justice Communities
served by a Hub Site, as defined in Part 5 of this Act;
(3) one current or former participant trainee in the
Clean Energy Entrepreneurship and Contractor Incubator
Network Program. For the initial board term, the
Department may select a current or former participant of a
utility-supported contractor incubator program for this
position;
(4) 2 members from community-based organizations in
environmental justice communities and community-based
organizations serving low-income persons and families;
(5) 2 members who are policy or implementation experts
on small business development, contractor incubation, or
small business lending and financing needs;
(6) 2 members who are policy or implementation experts
on workforce development for populations and individuals
such as low-income persons and families, environmental
justice communities, BIPOC communities, justice-involved
persons, persons who are or were in the child welfare
system, energy workers, gender nonconforming and

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transgender individuals, and youth;
(7) 2 representatives of clean energy businesses,
nonprofit organizations, worker-owned cooperatives, and
other groups that provide clean energy contracting
opportunities; and
(8) 2 representatives of labor unions.
At any time, the Board must contain at least 4 members who
reside in each of the North, Central, and Southern sections of
Illinois. The terms of the initial members of the Advisory
Board shall be such that 5 members have initial 3-year terms, 5
members have initial 2-year terms, and 5 members have initial
1-year terms. After initial terms are complete, all members of
the Advisory Board shall have 3-year terms. A majority of
Board members shall constitute a quorum.
Section 5-130. Regional administrators.
(a) Within 180 days after the effective date of this Act,
the Department shall convene and complete a comprehensive
stakeholder process that includes, at minimum, representatives
from community-based organizations in environmental justice
communities, community-based organizations serving low-income
persons and families, community-based organizations serving
energy workers, and labor unions. The stakeholder process must
include measures for process transparency to be posted on the
Department website or initial program websites, such as a
timeline for key decision points, detailed criteria

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implementing requirements specified in subsection (b) of this
Section, and identification of opportunities for stakeholder
participation and review. After completing the stakeholder
process, the Department, in consultation with and with the
approval of the Advisory Board, shall select 3 Regional
Administrators to administer and coordinate the work of the
following programs set forth in this Act:
(1) the Clean Jobs Workforce Hubs Program;
(2) the Expanding Clean Energy Entrepreneurship and
Contractor Incubator Network Program; and
(3) the Returning Residents Clean Jobs Training
Program.
(b) The Department shall select 3 unique Regional
Administrators: one Regional Administrator for coordination of
the work in the Northern Illinois Program Delivery Area, one
Regional Administrator selected for coordination of the work
in the Central Illinois Program Delivery Area, and one
Regional Administrator selected for coordination of the work
in the Southern Illinois Program Delivery Area. For purposes
of this Act:
(1) The Northern Illinois Program Delivery Area
includes areas in or near Chicago (South Side), Chicago
(Southwest Side), Waukegan, Rockford, Aurora, Joliet, and
one of the 3 sites to be selected based on the gap analyses
described in subsection (b) of Section 5-515 of Part 5 of
this Act and subsection (b) of Section 5-1010 of Part 10 of

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this Act.
(2) The Central Illinois Program Delivery Area
includes areas in or near Peoria, Champaign, Danville,
Decatur, and one of the 3 sites to be selected based on the
gap analyses described in subsection (b) of Section 5-515
of Part 5 of this Act and subsection (b) of Section 5-1010
of Part 10 of this Act.
(3) The Southern Illinois Program Delivery Area
includes areas in or near Carbondale, East St. Louis, and
Alton, and one of the 3 sites to be selected based on the
gap analyses described in subsection (b) of Section 5-515
of Part 5 of this Act and subsection (b) of Section 5-1010
of Part 10 of this Act.
(c) The Regional Administrators shall have strong
capabilities, experience, and knowledge related to program
development and fiscal management; cultural and language
competency needed to be effective in their respective
communities to be served; expertise in working in and with
BIPOC and environmental justice communities; knowledge and
experience in working with providers of clean energy jobs; and
awareness of industry trends and activities, workforce
development best practices, regional workforce development
needs, regional and industry employers, and community
development. The Regional Administrators shall demonstrate a
track record of strong partnerships with community-based
organizations.

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(d) The Regional Administrators shall work together to
coordinate the programs listed in paragraphs (1) through (3)
of subsection (a) to ensure execution, performance,
partnerships, marketing, and program access across the State
that is as consistent as possible while respecting regional
differences. The Regional Administrators shall work with
Program Administrators and partner community-based
organizations in their respective regions and Program Delivery
Areas to deliver these programs and shall establish mechanisms
to fund these partner community-based organizations for their
work on these programs. Each of the Regional Administrators
shall convene the community-based organizations delivering
program elements in their Program Delivery Areas for a meeting
once per quarter, at minimum, as well as monthly calls, at
minimum. Each year, the Department shall convene a meeting of
the Regional Administrators, contracted community-based
organizations, and subcontracted entities.
(e) The Department shall oversee the coordination
undertaken by all 3 Regional Administrators to ensure
high-quality and equivalent service provision statewide. The
Department shall require, at minimum, monthly coordination
meetings including the Department and all 3 Regional
Administrators to develop joint planning processes and
coordination mechanisms with each of the Regional
Administrators and among the 3 Regional Administrators such
that they are functioning effectively and delivering parallel

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administration in their respective regions, and the Department
shall also work to create joint planning opportunities and
coordination mechanisms to enable the Regional Administrators
to collaborate, particularly enabling the Regional
Administrators to coordinate and collaborate to enhance
program delivery within their respective program delivery
areas.
(f) Regional Administrators shall present a regional
status report consisting of, at minimum, the performance
metrics detailed in the programs described in subsection (a)
of this Section to the Advisory Board at each of its quarterly
meetings.
(g) Regional Administrators shall take on additional
duties related to the program administration as assigned by
the Department.
Section 5-135. Corrective action.
(a) The Department shall maintain a performance management
system to support the Primes Program Administrator, Regional
administrators, and Regional Primes Program Leads in ensuring
effective and high-quality implementation of the programs
listed in Section 5-120 of this Part.
(b) If the Primes Program Administrator, a Regional
Administrator, a Regional Primes Program Lead or contracted
community-based organization or other vendor does not deliver
contractually obligated program elements, objectives, or

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outcomes, even after multiple corrective action plans have
been implemented, the Department or, in the case of
community-based organizations or other vendors, the Regional
Administrator may place the organization on probationary
status, or as needed, terminate their services. The Department
shall develop procedures to enable Regional Administrators to
procure expedited replacement contracts to avoid any resulting
disruption to the affected programs.
(c) If the Primes Program Administrator, a Regional
Administrator, a Regional Primes Program Lead or contracted
community-based organization or other vendor does not deliver
contractually obligated program elements, objectives, or
outcomes after corrective action has been implemented, the
Department may take additional corrective action, including,
but not limited to, a legally binding dispute resolution
process.
(d) The Department, Primes Program Administrator, and
Regional Administrators shall develop uniform guidelines for
minimum components of corrective action plans, and guidelines
for when probationary status or termination is deemed
warranted for the Primes, Program Administrator, Regional
Administrators, a Regional Primes Program Lead, contracted
community-based organizations or other vendors. The
Department, Primes Program Administrator, and Regional
Administrators, with input from the Advisory Board, shall
develop a uniform, legally binding mechanism for dispute

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resolution between contracted community-based organizations
and their subcontracted entities to be implemented under the
Primes Program Administrator, Regional Administrators or other
identified mediator.
Section 5-140. Statewide program support lead. The
Department may contract with an outside vendor to assist with
program administration, contract management, management of
Regional Administrators, or other functions, as needed.
Section 5-145. Agreements. All agreements entered into
between the Department and entities for the purpose of
implementing the programs listed in Section 5-120 of this Part
shall contain provisions that provide for the implementation
of this Act.
Section 5-150. Administration; rules. The Department shall
administer this Act and shall adopt any rules necessary for
that purpose.
Part 5. Clean Jobs Workforce Hubs Network Program
Section 5-505. Definitions. As used in this Part:
"Program" means the Clean Jobs Workforce Hubs Network
Program.

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Section 5-510. Clean Jobs Workforce Hubs Network Program.
(a) The Department shall develop, and through Regional
Program Administrators administer, the Clean Jobs Workforce
Hubs Network Program to create a network of 16 Program
delivery Hub Sites with program elements delivered by
community-based organizations and their subcontractors
geographically distributed across the State.
(b) The Program shall provide direct and sustained support
to members of one or more of the following members of
communities across the State to enter and complete the career
pipeline for clean energy jobs, with the goal of serving all of
the following groups distributed across the network: (i)
low-income persons; (ii) persons residing in environmental
justice communities; (iii) BIPOC persons; (iv)
justice-involved persons; (v) persons who are or were in the
child welfare system; (vi) energy workers; (vii) members of
any of these groups who are also women, transgender, or gender
nonconforming persons; and (viii) members of any of these
groups who are also youth.
(c) The Clean Jobs Workforce Hubs Network Program must:
(1) leverage community-based organizations,
educational institutions, and community-based and
labor-based training providers to ensure members of
disadvantaged communities across the State have dedicated
and sustained support to enter and complete the career
pipeline for clean energy jobs; and

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(2) develop formal partnerships, including formal
sector partnerships between community-based organizations
and (i) trades groups, (ii) labor unions, and (iii)
entities that provide clean energy jobs, including
businesses, nonprofit organizations, and worker-owned
cooperatives to ensure that Program participants have
priority access to high-quality preapprenticeship,
apprenticeship, and other employment training and hiring
opportunities.
Section 5-515. Clean Jobs Workforce Hubs Network.
(a) The Department must develop and, through Regional
Administrators, administer the Clean Jobs Workforce Hubs
Network.
(b) The Clean Jobs Workforce Hubs Network shall be made up
of 16 Program delivery Hub Sites geographically distributed
across the State, including at least one Hub Site located in or
near each of the following areas: Chicago (South Side),
Chicago (Southwest Side), Waukegan, Rockford, Aurora, Joliet,
Peoria, Champaign, Danville, Decatur, Carbondale, East St.
Louis, and Alton. Three additional Hub Sites shall be
determined by the Department within 240 days after the
effective date of this Act based on a gap analysis identifying
areas with high concentrations of low-income residents,
environmental justice communities, and energy workers that are
otherwise underserved by the other 13 Hub Sites, as well as

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review of advisory recommendations from the Advisory Board
specified in subsection (d) of Section 5-520. One of the
additional sites shall be located in the Northern Illinois
Program Delivery Area covering Northern Illinois, one of the
additional sites shall be located in the Central Illinois
Program Delivery Area covering Central Illinois, and one of
the additional sites shall be located in the Southern Illinois
Program Delivery Area covering Southern Illinois as specified
in Section 5-130 of Part 1 of this Act.
(c) Program elements at each Hub Site shall be provided by
a local community-based organization that shall be initially
competitively selected by the Department within 330 days after
the effective date of this Act and shall be subsequently
competitively selected by the Department every 5 years.
Community-based organizations delivering program elements
outlined in subsection (d) may provide all elements required
or may subcontract to other entities for provision of portions
of program elements, including, but not limited to,
administrative soft and hard skills for program participants,
delivery of specific training in the core curriculum, or
provision of other support functions for program delivery
compliance. The Department and the Regional Administrators,
with input from the Advisory Board, shall develop uniform
minimum contractual requirements for competitively selected
community-based organizations to provide the Program, uniform
minimum contractual requirements for all Program subcontracts,

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and uniform templates for requests for proposals for all
Program subcontracts.
(d) The Clean Jobs Workforce Hubs Network shall provide
all of the following program elements:
(1) Community education and outreach about workforce
and training opportunities to ensure the following persons
are informed of clean energy workforce and training
opportunities: (i) low-income persons; (ii) persons
residing in environmental justice communities; (iii) BIPOC
persons; (iv) justice-involved persons; (v) persons who
are or were in the child welfare system; (vi) energy
workers; (vii) members of any of these groups who are also
women, transgender, or gender nonconforming persons; and
(viii) members of any of these groups who are also youth.
(2) Implementation of the Clean Jobs Curriculum, which
may include, but is not limited to training,
preapprenticeship, certification preparation, job
readiness, and skill development, including soft skills,
math skills, technical skills, certification test
preparation, and other development needed for Program
participant members of disadvantaged communities specified
in subsection (b) of Section 5-510.
(3) Development of strategies to ensure that
participant members of communities specified in subsection
(b) of Section 5-510 are invited, supported, and given
preference in applying for both community-based and

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labor-based training opportunities, including
apprenticeship and preapprenticeship programs, as well as
degree and certificate credentials training programs.
Strategies shall include, but are not limited to, targeted
outreach and recruitment activities and events, and
strategies may include, but are not limited to,
articulation or matriculation agreements and memoranda of
understanding with community-based and labor-based
training opportunities, including preapprenticeship and
apprenticeship programs, as well as degree and certificate
credential training programs where relevant.
(4) A living wage-equivalent stipend program for
Program participants to compensate for time in clean
energy jobs-related training programs and help them pay
for necessary living expenses during the training. This
stipend shall be supplemented by funding for
transportation, child care, certification preparation and
testing fees, textbooks, tools and equipment, as well as
other services and supplies needed to reduce barriers to
their continued training and future employment during the
length of programs.
(5) Job readiness, placement, and retention support
services, which may include, but are not limited to,
assistance in creating a resume, training in professional
networking skills, training in job interview skills and
preparation, on-the-job support and counseling, conflict

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resolution skills, financial literacy and coaching, and
training in how to find open positions and pursuing
opportunities to meet hiring contractors in training and
apprenticeship programs to connect trainees to both union
and nonunion career options with businesses, nonprofit
organizations, worker-owned cooperatives, and other
entities that provide clean energy jobs opportunities and
to provide a direct resource for industry to identify
qualified workers to meet program hiring or subcontracting
requirements including, the workforce equity building
actions required under Section 1-75 of the Illinois Power
Agency Act and Section 16-128B of the Public Utilities
Act. Placement activities shall include outreach to public
agencies and utilities, as well as outreach to businesses,
nonprofit organizations, worker-owned cooperatives, and
other entities that provide clean energy jobs
opportunities.
(6) Recruitment, communications, and ongoing
engagement with potential employers, including, but not
limited to, activities such as job matchmaking
initiatives, hosting events such as job fairs, and
collaborating with other Hub Sites to identify and
implement best practices for employer engagement.
(e) Within 90 days after the effective date of this Act,
the Department shall competitively select a community-based
organization to assist with pre-Program launch public

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communications and stakeholder tracking, which shall begin
within 120 days after the effective date of this Act and shall
continue through Program launch. The Department may elect to
initiate pre-Program communication of updates to the public
between the effective date of this Act and competitive
selection of a community-based organization to assist.
Pre-Program launch communications and stakeholder tracking
functions shall include, but are not limited to: (1)
developing an initial email subscription list so that
interested stakeholders and interested members of the public
may sign up to receive email updates about the status of
Program implementation, (2) develop an initial basic website
including the initial email list subscription form and a page
where public pre-Program updates shall be posted, (3) develop
initial social media accounts where public pre-Program updates
shall be posted, and (4) coordinate with the Department,
Regional Administrators, and Advisory Board members to solicit
information for the purposes of updating the public, as
approved by the Department. Pre-Program updates shall include,
but are not limited to, information about implementation
timelines, selection of Hub Sites, selection of Advisory Board
members, selection of Regional Administrators, selection of
contracted organizations, updates from the Advisory Board, and
other significant Program Administration updates. Pre-Program
updates shall be disseminated to the public through the
website, email list, and social media accounts no less

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frequently than once per month. Following Program launch, the
Department shall either (A) assume direct fulfillment of all
responsibilities of public communications and stakeholder
tracking directly or (B) elect to continue to competitively
select a community-based organization to continue these
functions and develop all initial functions into ongoing
Program functions. If the Department elects to continue to
competitively contract these functions, the Department may
either: (i) elect to extend the contract to the competitively
selected community-based organization delivering these
functions during the pre-Program launch period, and may do so
for a period to be determined by the Department, but to not
exceed 2 years following Program launch; or (ii) elect to
competitively select another community-based organization to
fulfill communications and stakeholder tracking functions. The
Department shall subsequently competitively select a
community-based organization to fulfill communications and
stakeholder tracking functions every 2 years.
Section 5-520. Regional administrators.
(a) The Clean Jobs Workforce Network Hubs Program shall be
administered by 3 Regional Administrators as described in
Section 5-130 of Part 1 of this Act.
(b) The Advisory Board shall have the duties given to it by
Part 1 of this Act as it relates to the Program. In addition,
the Advisory Board shall provide recommendations to the

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Department to complement the gap analysis and selection of 3
Primary Hub Sites as specified in Section 5-130 of Part 1 of
this Act.
(c) The Department shall require submission of quarterly
reports including program performance metrics by each Hub Site
to the Regional Administrator of their Program Delivery Area,
as specified in subsection (a) of Section 5-1015 of Part 10, in
a time and manner as prescribed by the Department. Each
Regional Administrator shall collect, track, and
simultaneously submit quarterly reports to the Department and
the members of the Advisory Board, including program
performance metrics reported in a format that allows for
review of the metrics both (i) for each individual Hub Site and
(ii) aggregated by Program Delivery Area. Each Regional
Administrator shall provide technical assistance to each
individual Hub Site in their Program Delivery Area in building
systems and capacity to collect data. Program Performance
metrics include, but are not limited to, the following
information collected for each Program trainee, where
applicable:
(1) demographic data, including racial, gender, and
geographic distribution data, on Program trainees entering
the Program;
(2) demographic data, including racial, gender, and
geographic distribution data, on Program trainees
graduating the Program;

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(3) demographic data, including racial, gender, and
geographic distribution data, on Program trainees who are
placed in employment, including the percentages of
trainees by race, gender, and geographic categories in
each individual job type or category and whether
employment is union, nonunion, or nonunion via temp
agency;
(4) trainee job retention statistics, including the
duration of employment (start and end dates of hires) by
race, gender, and geography;
(5) hourly wages, including hourly overtime pay rate,
and benefits of trainees placed into employment by race,
gender, and geography;
(6) percentage of jobs by race, gender, and geography
held by Program trainees or graduates that are full-time
equivalent positions, meaning that the position held is
full-time, direct, and permanent based on 2,080 hours
worked per year (paid directly by the employer, whose
activities, schedule, and manner of work the employer
controls, and receives pay and benefits in the same manner
as permanent employees); and
(7) qualitative data consisting of open-ended
reporting on pertinent issues, including, but not limited
to, qualitative descriptions accompanying metrics or
identifying key successes and challenges.
The Department shall also, on a quarterly basis, make the

HB0804 Engrossed - 33 - LRB102 10881 SPS 16211 b
program performance metrics provided under this subsection (c)
available to the public on its website and on the Program
website.
(d) Within 3 years after the effective date of this Act,
and subsequently at least once every 3 years thereafter, the
Department shall select an independent evaluator to review and
prepare a report on the performance of the Program and the
Regional Administrators. The evaluation shall be based on, but
not limited to, the quantitative and qualitative program
performance metrics specified in subsection (g) and objective
criteria developed through a comprehensive public stakeholder
process. In preparing the report, the independent evaluator
shall include participation and recommendations from persons
including, but not limited to, members of the Advisory Board,
additional Program participants who are not already serving as
members of the Advisory Board, and additional Program
stakeholders including organizations in environmental justice
communities and organizations serving low-income persons and
families. The report shall include a summary of the evaluation
of the Program, as well as an appendix including a review of
submitted recommendations and a compilation of reported
program performance metrics for the period covered by the
evaluation. The report shall be posted publicly on the
Department's website and the Program website, and shall be
used, as needed, to improve implementation of the Program.
Between evaluation due dates, the Department shall maintain

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the necessary records and information required to satisfy the
evaluation requirements.
Section 5-525. Clean jobs curriculum.
(a) Within 90 days after the effective date of this Act,
the Department shall convene a comprehensive stakeholder
process that includes representatives from the Illinois State
Board of Education, the Illinois Community College Board, the
Department of Labor, community-based organizations, workforce
development providers, labor unions, building trades,
educational institutions, residents of BIPOC and low-income
communities, residents of environmental justice communities,
as well as clean energy businesses, nonprofit organizations,
worker-owned cooperatives, other groups that provide clean
energy jobs opportunities, and other participants to identify
the career pathways and training curriculum needed to prepare
workers to enter clean energy jobs as defined in Section 5-115
and build careers. The curriculum shall:
(1) identify the core training curricular competency
areas needed to prepare workers to enter clean energy jobs
as defined in Section 5-115, such as those included in,
but not limited to, the Multi-Craft Core Curriculum, U.S.
Department of Labor Employment and Training
Administration-sponsored CareerOneStop Renewable Energy
Competency Model, the Electric Vehicle Infrastructure
Training Program;

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(2) identify a set of certifications relevant for
clean energy job types to be included in respective
training programs and used to inform core training
Curricular competency areas, such as, but not limited to,
North American Board of Certified Energy Practitioners
(NABCEP) Board Certifications, Interstate Renewable Energy
Council (IREC) Accredited Certificate Programs, American
Society of Heating, Refrigerating and Air-Conditioning
Engineers (ASHRAE) ANSI/ISO accreditation standard
certifications, Electric Vehicle Infrastructure Training
Program Certifications, and UL Certification for EV
infrastructure;
(3) identify a set of required core cross-training
competencies provided in each training area for clean
energy jobs with the goal of enabling any trainee to
receive a standard set of skills common to multiple
training areas that would provide a foundation for
pursuing a career composed of multiple clean energy job
types;
(4) include approaches to integrate broad occupational
training to provide career entry into the general
construction and building trades sector and any remedial
education and work readiness support necessary to achieve
educational and professional eligibility thresholds;
(5) identify, directly or through references to
external resources, career pathways for clean energy jobs

HB0804 Engrossed - 36 - LRB102 10881 SPS 16211 b
types, such as, but not limited to, pathways identified
in: IREC Careers in Climate Control Technology Map, IREC
Solar Career Map for Workforce Training, NABCEP
Certification Career Map, and U.S. Department of Labor's
Bureau of Labor Statistics Green Jobs Initiative; and
(6) identify on-the-job training formats, where
relevant; and identify suggested trainer certification
standards, where relevant.
(b) Within 180 days after the stakeholder process is
convened, the Department shall publish a report that includes
the findings, recommendations, and core curriculum identified
by the stakeholder group and shall post a copy of the report on
its public website. The Department shall convene the process
described to update and modify the recommended curriculum
every 3 years to ensure the curriculum contents are current to
the evolving clean energy industries, practices, and
technologies.
(c) Organizations that receive funding to provide training
under the Clean Jobs Workforce Hubs Network Program,
including, but not limited to, community-based and labor-based
training providers, and educational institutions must use the
core curriculum that is developed under this Section.
Section 5-530. Funding. To provide direct, sustained
support for the Program, the Department shall be responsible
for overseeing the development and implementation of the

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Program, and each year shall, subject to appropriation,
allocate at least $1,000,000 to each of the 16 community-based
organizations providing program elements at the 16 Hub Sites
described in this Act, including for the purposes of providing
Program elements through subcontracted entities. Funding of
$26,000,000 for the Program shall be made available from the
Energy Community Reinvestment Fund.
Section 5-535. Administrative review. All final
administrative decisions, including, but not limited to,
funding allocation and rules issued, made by the Department
under this Part are subject to judicial review under the
Administrative Review Law and its rules. No action may be
commenced under this Section prior to 60 days after the
complainant has given notice in writing of the action to the
Department.
Part 10. Expanding Clean Energy Entrepreneurship
and Contractor Incubator Network Program
Section 5-1001. Definitions. As used in this Part:
"Program" means the Expanding Clean Energy
Entrepreneurship and Contractor Incubator Network Program.
Section 5-1005. Expanding Clean Energy Entrepreneurship
and Contractor Incubator Network Program.

HB0804 Engrossed - 38 - LRB102 10881 SPS 16211 b
(a) The Department shall develop and, through Regional
Program Administrators, administer the Expanding Clean Energy
Entrepreneurship and Contractor Incubator Network Program to
create a network of 16 Program delivery Hub Sites with program
elements delivered by community-based organizations and their
subcontractors geographically distributed across the State.
(b) The Program shall provide direct and sustained support
for the development and growth of BIPOC participant
contractors and provide the needed resources for entities to
be able to effectively compete for, gain, and execute clean
energy-related projects that create clean energy jobs. The
Program shall provide direct and sustained support for a
portion of disadvantaged BIPOC contractors in the Program who
are previous graduates of the Clean Jobs Workforce Hubs
Network Program to further develop wealth-building
opportunities, and career paths in clean energy contracting
and the creation of clean energy jobs.
Section 5-1010. Expanding Clean Energy Entrepreneurship
and Contractor Incubator Network.
(a) The Department shall develop and, through Regional
Program Administrators, administer the Expanding Clean Energy
Entrepreneurship and Contractor Incubators Network.
(b) The Clean Energy Entrepreneurship and Contractor
Incubator Network Program shall be made up of 16 Program
delivery Hub Sites geographically distributed across the

HB0804 Engrossed - 39 - LRB102 10881 SPS 16211 b
State, including at least one Hub Site located in or near each
of the following areas: Chicago (South Side), Chicago
(Southwest Side), Waukegan, Rockford, Aurora, Joliet, Peoria,
Champaign, Danville, Decatur, Carbondale, East St. Louis, and
Alton. Three additional sites shall be determined by the
Department within 240 days after the effective date of this
Act based on a gap analysis identifying areas with high
concentrations of low-income residents, environmental justice
communities, and energy workers that are otherwise underserved
by the other 13 Hub Sites, as well as review of advisory
recommendations from the Advisory Board. One of the additional
sites shall be located in the Northern Illinois Program
Delivery Area covering Northern Illinois, one of the
additional sites shall be located in the Central Illinois
Program Delivery Area covering Central Illinois, and one of
the additional sites shall be located in the Southern Illinois
Program Delivery Area covering Southern Illinois as specified
in Part 1 of this Act.
(c) Program elements at each Hub Site shall be provided by
a local community-based organization that shall be initially
competitively selected by the Department within 330 days after
the effective date of this Act and shall be subsequently
competitively selected by the Department every 5 years.
Community-based organizations delivering program elements
required in subsection (d) of this Section may provide all of
the elements required at each Hub Site or may subcontract to

HB0804 Engrossed - 40 - LRB102 10881 SPS 16211 b
other entities for the provision of portions of program
elements, including, but not limited to, administrative soft
and hard skills for program participants, delivery of training
in the core curriculum, or the provision of other support
functions for program delivery compliance. The Regional
Administrators, with input from the Program Advisory Board,
shall develop uniform minimum contractual requirements for
competitively selected community-based organizations to
provide the Program, uniform minimum contractual requirements
for all Program subcontracts, and uniform templates for
requests for proposals for all Program subcontracts.
(d) The Expanding Clean Energy Entrepreneurship and
Contractor Incubator Network Program shall provide the
following program elements:
(1) access to low-cost capital for small and BIPOC
clean energy businesses and contractors to be able to
compete on a level playing field with more established,
capitalized businesses across the entire clean energy
sector in Illinois, including solar, wind, energy
efficiency, transportation, electrification, solar
thermal, geothermal, and other renewable energy
industries;
(2) support for obtaining financial assurance,
including, but not limited to: bonding; back office
services; insurance, permits, training and certifications;
business planning; and other needs that will allow BIPOC

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participant contractors to effectively compete for clean
energy-related projects, incentive programs, and approved
vendor and qualified installer opportunities;
(3) development, mentoring, training, networking, and
other support needed to allow BIPOC participant
contractors to: (i) build their businesses and connect to
specific projects, (ii) register as approved vendors where
applicable, (iii) engage in approved vendor subcontracting
and qualified installer opportunities, (iv) Develop
partnering and networking skills, (v) compete for capital
and other resources, and (vi) execute clean energy-related
project installations and subcontracts;
(4) outreach and communications capability to ensure
that BIPOC participant contractors, community partners,
and potential contractor clients are aware of and engaged
in the Program;
(5) prevailing wage compliance training and back
office support to implement prevailing wage practices; and
(6) recruitment, communications, and ongoing
engagement with potential entities that hire contractors
and subcontractors, and program administrators of programs
providing renewable energy resource-related projects,
incentive programs, and approved vendor and qualified
installer opportunities, including, but not limited to,
activities such as matchmaking initiatives, hosting
events, and collaborating with other Hub Sites to identify

HB0804 Engrossed - 42 - LRB102 10881 SPS 16211 b
and implement best practices for engagement.
(e) Within 90 days after the effective date of this Act,
the Department shall competitively select a community-based
organization to assist with pre-Program launch public
communications and stakeholder tracking, which shall begin
within 120 days after the effective date of this Act and shall
continue through Program launch. The Department may elect to
initiate pre-Program communication of updates to the public
between the effective date of this Act and competitive
selection of a community-based organization to assist.
Pre-Program launch communications and stakeholder tracking
functions shall include, but are not limited to, the
following: (1) developing an initial email subscription list
so that interested stakeholders and interested members of the
public may sign up to receive email updates about the status of
Program implementation, (2) develop an initial basic website
including the initial email list subscription form and a page
where public pre-Program updates shall be posted, (3) develop
initial social media accounts where public pre-Program updates
shall be posted, and (4) coordinate with the Department,
Regional Administrators, and Advisory Board members to solicit
information for the purposes of updating the public, as
approved by the Department. Pre-Program updates shall include,
but are not limited to, information about implementation
timelines, selection of Hub Sites, selection of Advisory Board
members, selection of Regional Administrators, selection of

HB0804 Engrossed - 43 - LRB102 10881 SPS 16211 b
contracted organizations, updates from the Advisory Board, and
other significant Program Administration updates. Pre-Program
updates shall be disseminated to the public through the
website, email list, and social media accounts no less
frequently than monthly. Following Program launch, the
Department shall either (A) assume direct fulfillment of all
responsibilities of public communications and stakeholder
tracking directly or (B) elect to continue contracting with a
competitively selected community-based organization to provide
these functions and develop all initial functions into ongoing
Program functions. If the Department elects to continue to
competitively contract these functions, the Department may
either (i) extend the contract to the competitively selected
community-based organization delivering the functions during
the pre-Program launch period, and may do so for a period to be
determined by the Department, but not to exceed 2 years
following Program launch, or (ii) elect to competitively
select another community-based organization to fulfill
communications and stakeholder tracking functions. The
Department shall subsequently competitively select a
community-based organization to fulfill communications and
stakeholder tracking functions once every 2 years.
Section 5-1015. Regional administrators.
(a) The Clean Energy Entrepreneurship and Contractor
Incubator Network Program shall be administered by 3 Regional

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Administrators as described in Section 5-130 of Part 1 of this
Act. In addition, the Regional Administrators shall administer
the Departments loan and grant programs, where relevant, as
specified in subsection (a) of Section 5-1010 of this Part.
(b) The Advisory Board shall have the duties given to it by
the Part 1 of this Act as they relate to the Program. In
addition, the Advisory Board shall provide recommendations to
the Department to complement the gap analysis and selection of
3 Primary Hub Sites as specified in Section 5-130 of Part 1 of
this Act.
(c) The Department shall require submission of quarterly
reports including program performance metrics by each Hub Site
to the Regional administrator of their Program Delivery Area
as specified in subsection (a) of Section 5-1015 in a time and
manner prescribed by the Department. Each Regional
Administrator shall collect, track, and simultaneously submit
quarterly reports to the Department and the Advisory Board,
including program performance metrics reported in a format
that allows for review of the metrics both (i) for each
individual Hub Site and (ii) aggregated by Program Delivery
Area. Each Regional Administrator shall provide technical
assistance to each individual Hub Site in their Program
Delivery Area in building systems and capacity to collect
data. Program performance metrics include, but are not limited
to, the following information collected for each Program
participant:

HB0804 Engrossed - 45 - LRB102 10881 SPS 16211 b
(1) demographic data, including racial, gender, and
geographic distribution data, on BIPOC participant
contractors entering and graduating the Program;
(2) number of projects completed by BIPOC participant
contractors, solo or in partnership;
(3) number of partnerships with BIPOC participant
contractors that are expected to result in contracts for
work by the BIPOC participant contractor;
(4) changes, including growth, in BIPOC participant
contractors' business revenue;
(5) number of new hires by BIPOC participant
contractors;
(6) demographic data, including racial, gender, and
geographic distribution data as well as average wage data,
for new hires by BIPOC participant contractors;
(7) demographic data, including racial, gender, and
geographic distribution data of ownership of BIPOC
participant contractors;
(8) certifications held by BIPOC participant
contractors, including, but not limited to, registration
under Business Enterprise for Minorities, Women, and
Persons with Disabilities Act program and other programs
intended to certify BIPOC entities;
(9) number of Program sessions attended by BIPOC
participant contractors;
(10) indicators relevant for assessing general

HB0804 Engrossed - 46 - LRB102 10881 SPS 16211 b
financial health of BIPOC participant contractors; and
(11) qualitative data consisting of open-ended
reporting on pertinent issues, including, but not limited
to, qualitative descriptions accompanying metrics or
identifying key successes and challenges.
The Department shall, on a quarterly basis, make program
performance metrics provided under this subsection (g)
available to the public on its website and on the Program
website.
(d) Within 3 years after the effective date of this Act,
and subsequently at least once every 3 years, the Department
shall select an independent evaluator to evaluate and prepare
a report on the performance of the Program and Regional
Administrators. The evaluation shall be based on the
quantitative and qualitative program performance metrics and
reports specified in subsection (g) and objective criteria
developed through a comprehensive public stakeholder process.
The process shall include participation and recommendations
from Program participants, Advisory Board members, additional
current and former Program participants who are not already
serving as members of the Advisory Board, and additional
Program stakeholders, including organizations in environmental
justice communities and serving low-income persons and
families. The report shall include a summary of the evaluation
of the Program, as well as an appendix that includes a review
of submitted recommendations and a compilation of reported

HB0804 Engrossed - 47 - LRB102 10881 SPS 16211 b
program performance metrics for the period covered by the
evaluation. The report shall be posted publicly on the
Department's website and shall be used, as needed, to improve
implementation of the Program. The Department shall maintain
the necessary information and records required to satisfy the
evaluation requirements.
Section 5-1020. Jobs and Environmental Justice Grant
Program.
(a) In order to provide upfront capital to support the
development of projects, businesses, community organizations,
and jobs creating opportunity for Black, Indigenous, and
People of Color, the Program shall create and administer a
Jobs and Environmental Justice Grant Program. The grant
program shall be designed to help remove barriers to project,
community, and business development caused by a lack of
capital.
(b) The grant program shall provide grant awards of up to
$1 million per application to support the development of
renewable energy resources as defined in Section 1-75 of the
Illinois Power Agency Act, and Energy Efficiency projects as
defined in Sections 8-103B and 8-104.1 of the Public Utilities
Act. The amount of a grant award shall be based on a project
size and scope. Grants shall be provided upfront, in advance
of other incentives, to provide businesses and organizations
with capital needed to plan, develop, and execute a project.

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Grants shall be designed to coordinate with and supplement
existing incentive programs, such as the Adjustable Block
Program, the Solar for All Program, the Community Solar
Program, and renewable energy procurements as described in the
Illinois Power Agency Act, as well as utility Energy
Efficiency programs as described in Sections 8-103B and
8-104.1 of the Public Utilities Act.
(c) Grants shall be awarded to businesses and nonprofit
organizations for costs related to the following activities
and project needs:
(1) planning and project development, including costs
for professional services such as architecture, design,
engineering, auditing, consulting, and developer services;
(2) project application, deposit, and approval;
(3) purchasing and leasing of land;
(4) permitting and zoning;
(5) interconnection application costs and fees,
studies, and expenses;
(6) equipment and supplies;
(7) community outreach, marketing, and engagement;
(8) staff and operations expenses.
(d) Grants shall be awarded for projects that meet the
following criteria:
(1) provide community benefit, defined as greater than
50% of the project's energy provided or saved that
benefits low-income residents, not-for-profit

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organizations providing services to low-income households,
affordable housing owners, or community-based limited
liability companies providing services to low-income
households. In the case of Community Solar projects,
projects must provide preferential or exclusive access for
local subscribers or donated power;
(2) are located in environmental justice communities,
as that term has been defined based on existing
methodologies and findings used by the Illinois Power
Agency and its Administrator of the Illinois Solar for All
Program;
(3) provide on-the-job training, as time and scope
permits;
(4) contract with contractors who are participating or
have participated in the Expanding Clean Energy
Entrepreneurship and Contractor Incubators Network
Program, or similar programs, for a minimum of 50% of
project costs; and
(5) employ a minimum of 51% of its workforce from
participants and graduates of the Clean Jobs Workforce
Hubs Network Program and Returning Residents Program as
described in this Act.
(e) Grants shall be awarded to applicants that meet the
following criteria:
(1) achieve a minimum of 105 points in the equity
points systems described in paragraph (7) of subsection

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(c) of Section 1-75 of the Illinois Power Agency Act, or
meet the equity building criteria in paragraph (9.5) of
subsection (g) of Section 8-103B of the Public Utilities
Act or in paragraph (9.5) of subsection (j) of Section
8-104.1 of the Public Utilities Act; and
(2) provide demonstrable proof of a historical or
future, and persisting, long-term partnership with the
community in which the project will be located.
(f) The application process for the grant program shall
not be burdensome on applicants, nor require extensive
technical knowledge, and be able to be completed on less than 4
standard letter-sized pages.
(g) The Program shall coordinate its grant program with
the Clean Energy Jobs and Justice Fund to coordinate grants
under this program with low-interest and no-interest financing
opportunities offered by the fund.
(h) The grant program shall have a budget of $20,000,000
per year, for a minimum of 4 years, and continued after that
until funds are no longer available or the program is ended by
the Department.
Section 5-1025. Funding. To provide direct, sustained
support for the Program, the Department shall be responsible
for overseeing the development and implementation of the
Program, and each year shall, subject to appropriation,
allocate at least $800,000 to each of the 16 community-based

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organizations providing program elements at the 16 Hub Sites
described in this Act, including for the purposes of providing
program elements through subcontracted entities. Funding of
$21,000,000 per year for the Program shall be made available
from the Energy Community Reinvestment Fund, and funding of
$20,000,000 per year for the Jobs and Environmental Justice
Grant Program shall be made available from the Energy
Community Reinvestment Fund.
Section 5-1030. Administrative review. All final
administrative decisions, including, but not limited to
funding allocation and rules issued, made by the Department
under this Part are subject to judicial review under the
Administrative Review Law and its rules. No action may be
commenced under this Section prior to 60 days after the
complainant has given notice in writing of the action to the
Department.
Part 15. Illinois Clean Energy Black, Indigenous, and People
of Color Primes Contractor Accelerator
Section 5-1501. Definitions. As used in this Part:
"Approved Vendor" means the definition of that term used
and as may be updated by the Illinois Power Agency.
"Contractor Incubator" means an incubator authorized under
Part 10 of this Act.

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"Illinois Clean Energy Jobs and Justice Fund" means the
fund created in the Illinois Clean Energy Jobs and Justice
Fund Act.
"Mentor Company" means a private company selected to
provide business mentorship to Program participants as
described in Section 5-1535 of this Part.
"Minority Business" means a minority-owned business as
described in Section 2 of the Business Enterprise for
Minorities, Women, and Persons with Disabilities Act.
"Minority Business Enterprise certification" means the
certification or recognition certification affidavit from the
State of Illinois Department of Central Management Services
Business Enterprise Program or a program with equivalent
requirements more narrowly tailored to the needs of prime
contractors.
"Primes Program Administrator" means the entity or person
selected to be responsible for management of the Program as
established in Section 5-1505 of this Part.
"Regional Primes Program Lead" means the entity or person
selected to be responsible for management of the Program as
established in Section 5-1505 of this Part.
"Program" means the Illinois Clean Energy Black,
Indigenous, and People of Color Primes Contractor Accelerator
Program.
"Participant" means the persons and organizations selected
to participate in the Program.

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"Returning Resident" is defined as in Part 20 of this Act.
"Workforce Hub" means a workforce training program
authorized under Part 5 of this Act.
Section 5-1505. Illinois Clean Energy Black, Indigenous,
and People of Color Primes Contractor Accelerator Program
components.
(a) The Department of Commerce and Economic Opportunity
shall create and implement, consistent with the requirements
of this Part, an Illinois Clean Energy Black, Indigenous, and
People of Color Primes Contractor Accelerator. The offerings
for Program participants shall include the following:
(1) a 5-year, 6-month progressive course of one-on-one
coaching designed to assist each participant in developing
an achievable five-year business plan, including review of
monthly metrics, advice on achieving the Program
participant's goals such as obtaining relevant business
certifications and preparing for prime contracting
opportunities;
(2) operational support grants not to exceed $1
million annually;
(3) interest-free and low-interest loans available
through the Illinois Clean Energy Jobs and Justice Fund or
comparable financial mechanism;
(4) business coaching by outside consultants, based on
the participant's individual needs;

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(5) a mentorship of approximately 2 years provided by
a qualified company in the participant's field;
(6) full access to Contractor Incubator services
including courses and workshops, informational briefings
about opportunities created by the Clean Energy Jobs Act
and other Illinois focused clean energy opportunities,
access to jobs and project portals, contractor networking,
job fairs, and monthly contractor cohort meetings;
(7) technical assistance with applying for Minority
Business Enterprise certification and other relevant
certifications as well as Approved Vendor status for
Illinois programs offered by utilities or other similar
entities;
(8) technical assistance with preparing bids and
Request for Proposal applications for programs created by
the Clean Energy Jobs Act and other Illinois focused clean
energy opportunities;
(9) opportunities to participate in procurement
programs organized by the Department to provide bulk
discounts on tools, equipment, and supplies; and
(10) opportunities to be listed in any relevant
directories and databases organized by the Department.
(b) The Department and Primes Program Administrator shall
coordinate Program events and training designed to connect the
Program participants with the programs created in Parts II and
III of this Act.

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(c) The Department and Primes Program Administrator shall
coordinate with the Illinois Power Agency's Adjustable Block
Program and Illinois Solar For All program to connect Program
participants with funding opportunities created by the
Adjustable Block Program and Illinois Solar For All program.
(d) The Department and Primes Program Administrator shall
coordinate with the electric, gas and water utilities to
connect Program participants with Approved Vendor and other
service provider and incentive opportunities in areas
including energy efficiency and electric vehicles.
(e) The Department and Primes Program Administrator shall
coordinate financial development assistance programs such as
zero- and low-interest loans with the Illinois Clean Energy
Jobs and Justice Fund or a comparable financing mechanism. The
Department and Primes Program Administrator shall retain
authority to determine loan repayment terms and conditions.
Section 5-1510. Program administration.
(a) The Department shall, in consultation with the
Advisory Board, hire or contract a Primes Program
Administrator within 180 days after the effective date of this
Act.
(b) The Department shall select a Primes Program
Administrator with the following qualifications:
(1) experience running a large contractor-based or
Approved Vendor business in Illinois;

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(2) experience coaching businesses;
(3) experience participating in or managing a
mentorship program;
(4) experience in the Illinois clean energy industry;
(5) experience working with diverse, underserved, and
environmental justice communities; and
(6) experience working with or participating in
businesses owned by BIPOC persons.
(c) Responsibilities of the Primes Program Administrator.
The Primes Program Administrator shall be responsible for the
following:
(1) managing the Regional Primes Program Leads to
develop an 18-month Program budget as well as a 6-year
forecast to guide expenditures in the regions;
(2) working with the Regional Primes Program Leads to
design a Program application including a shareable
description of how participants will be selected;
(3) working with the Regional Primes Program Leads and
the partners in the programs described in Parts 5 and 10 of
this Act to publicize the Program;
(4) working with the Regional Primes Program Leads and
the Advisory Board to implement the recommendations on
acceptance of potential Program participants and awarded
funding;
(5) working with the Regional Primes Program Leads to
design and implement a mentorship program including

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stipend level recommendations and guidelines for any
Mentor Company-mentee profit sharing or purchased services
agreements;
(6) working with the Regional Primes Program Leads to
ensure participants are quickly on-boarded into the
Program and begin tapping Program resources;
(7) collecting and reporting metrics related to cohort
recruiting and formation to the Department and the
Advisory Board;
(8) reviewing the work plans and annual goals of all
participants. Reviewing all approved Mentor Companies and
the stipends they will be awarded;
(9) conducting an annual assessment of the mentorship
program including Mentor Company and mentee interviews,
Mentor Company and mentee satisfaction ratings, and input
from the Regional Primes Program Leads and creating a
consolidated report for Department and the Advisory Board;
(10) consolidating and reporting metrics related to
participant contractor engagement in other Illinois clean
energy programs such as the Adjustable Block Program,
Illinois Solar for All, and the utility-run energy
efficiency and electric vehicle programs;
(11) reviewing each participant's annual progress
through the Program and any recommendations from the
Regional Primes Program Lead about whether the participant
should continue in the Program, be considered a Program

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graduate, and whether adjustments to ongoing and future
grant money, loans and Contractor Incubator service access
are needed; and
(12) other duties as required to effectively and
equitably administer the Program.
(d) Within 90 days after being hired, the Primes Program
Administrator, in consultation with the Department and the
Advisory Board, shall contract with 3 Regional Primes Program
Leads. The Regional Primes Program Leads will report directly
to the Primes Program Administrator.
(e) The Regional Primes Program Leads selected by the
Primes Program Administrator shall have the following
qualifications:
(1) experience running a large contracting or Approved
Vendor business in Illinois;
(2) experience in the Illinois clean energy industry;
(3) experience coaching businesses;
(4) experience with a mentorship program;
(5) relationships with suitable potential Mentor
Companies in the region;
(6) experience working with diverse, underserved, and
environmental justice communities;
(7) experience working with or participating in
businesses owned by BIPOC persons; and
(8) ability and willingness to be located within the
region they will be leading.

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(f) The Regional Primes Program Leads shall have the
following responsibilities:
(1) developing Program marketing materials and working
with the Workforce Hubs and Contractor Incubators in the
region and their community partners to publicize the
Program. The budget shall include funds to pay
community-based organizations with a track record of
working with diverse, underserved, and environmental
justice communities to complete this work;
(2) recruiting qualified Program applicants;
(3) assisting Program applicants in understanding and
completing the application process;
(4) coordinating with the Department and the Advisory
Board to select qualified applicants for Program
participation and determine how to allocate funding among
selected participants;
(5) introducing participants to the Program offerings;
(6) upon entry of each Program participant and each
year thereafter, conducting a detailed assessment with
each participant to identify needed training, coaching,
and other Program services;
(7) upon entry of each Program participant and each
year thereafter, assisting each participant in developing
goals in terms of each Program element, and assessing
progress toward meeting the goals established in previous
years' work plans;

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(8) assisting Program participants in receiving their
Minority Business Enterprise certification and any other
relevant certifications and Approved Vendor statuses;
(9) matching each participant with Contractor
Incubator offerings and individualized expert coaching,
including training on working with returning residents and
the second chance companies that employ them, as needed;
(10) pairing each Program participant with a Mentor
Company;
(11) facilitating connections between each Program
participant to potential subcontractors and employees;
(12) dispensing each participant's awarded operational
grant funding;
(13) connecting each participant to zero- and
low-interest loans from the Illinois Clean Energy Jobs and
Justice Fund or a comparable financing mechanism;
(14) ensuring that each participant applies for
appropriate project opportunities funded by the State of
Illinois or businesses or individuals located within
Illinois;
(15) reviewing each participant's progress through the
Program and making a recommendation to the Department and
the Advisory Board about whether the participant should
continue in the Program, be considered a Program graduate,
and whether adjustments to ongoing and future grant
funding, loans and related service access overseen by the

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Advisory Board are needed; and
(16) other duties as required to effectively and
equitably administer the Program.
Section 5-1515. Eligibility for program participation.
(a) The Program will accept applications to become Program
participants from any person with the following
qualifications:
(1) 2 or more years of experience in a clean energy or
a related contracting field;
(2) at least $5,000 in annual business; and
(3) businesses with Minority Business Enterprise
certification or recognition certification affidavit from
the State of Illinois Department of Central Management
Services Business Enterprise program or that meet the
definition of a minority-owned business as described in
Section 2 of the Business Enterprise for Minorities, Women
and Persons with Disabilities Act.
(b) Applicants for Program participation shall be allowed
to reapply for a future cohort if they are not selected for
participation, and the Primes Program Administrator shall
inform each applicant of this option.
Section 5-1520. Participant selection.
(a) Each region will select a new cohort of participant
contractors every 18 months.

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(b) Each regional cohort will include between 3 and 5
participants.
(c) The application for positions as a program participant
shall be standardized across regions and require the following
information:
(1) company history, financial information, and
visibility;
(2) list of up to the 5 most recent years' projects
with basic information including customer names and
locations, partner names if any, community profit-sharing
arrangements if any, and total revenues, payroll expenses
and subcontracting expenses;
(3) list of future projects, if any, with same details
as the paragraph (2);
(4) a year-by-year plan showing how program-requested
operational grants, program-requested zero-interest and
low-interest loans and self-funding, private investments
and completed project profits will create growth for the
applicant company; and
(5) details on partnerships, including any
community-based organizations partnership for workforce
development, subscriber recruitment and conducting
information sessions as well as subcontracting
relationships and sources of private capital. Projected
spending shall be included for these items.
(d) Applicants will be scored up to 50 points based on the

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components outlined in subsection (c).
(e) Application who designate themselves as energy
efficiency applicants can be awarded additional points as
follows:
(1) Up to 15 points based on projected hiring and
industry job creation via subcontracting year-by-year,
including description of wages, salaries and benefits;
(2) Up to 15 points based on a clear vision of growing
the business in a strategic way;
(3) Up to 10 points based on a clear vision of how
increased capitalization would benefit the business;
(4) Up to 10 points based on past project performance
in the areas of work quality, adherence to best practices
and demonstration of technical knowledge;
(f) Applications who do not designate themselves as energy
efficiency applicants pursuant to paragraph (e) of this
Section can be awarded additional points as follows:
(1) Up to 10 points based on outside capital and
capacity the applicant is anticipated to bring to project
development;
(2) Up to 10 points based on ratio of grants to loans
requested as a measure of how much of the risk the
applicant is willing to assume;
(3) Up to 10 points based on the anticipated revenues
from future projects;
(4) Up to 10 points based on projected hiring and

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industry job creation via subcontracting year-by-year,
including description of wages, salaries and benefits;
(5) Up to 10 points based on any model proposed to
build wealth in the larger underserved community through
profit sharing, transfer of asset ownership (such as solar
panels) and other means.
(g) The Primes Program Administrator shall select Program
participants based on the application score, the Program's
ability to accommodate the requested grants and loans, and the
expectation of a contractor cohort that approximates the
racial diversity in the region. The Primes Program
Administrator shall cap contractors in the energy efficiency
sector at 50% of available cohort spots and 50% of available
grants and loans if possible.
(h) Regional Primes Program Leads shall review
applications, conduct one-on-one interviews, and, if possible,
visit work sites of promising candidates.
(i) Regional Primes Program Leads shall recommend a cohort
of selected contractors and a corresponding budget to the
Primes Program Administrator for final approval. Applicants
not recommended for approval are allowed to petition the
Primes Program Administrator, the Department and the Advisory
Board for consideration.
(j) Regional Primes Program Leads shall make cohort
recommendations to the Primes Program Administrator, the
Department and the Advisory Board. Applicants may be asked to

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make a short presentation to the Department and the Advisory
Board prior to a final determination on acceptance. Final
selection of contractor participants rests with the
Department.
Section 5-1525. Metrics and goals for program
participants.
(a) Upon each participant's acceptance into the Program,
the Regional Primes Program Leads shall solicit, and Program
participants shall be required to provide, the following
information to prepare a baseline report on the Program
participant's business:
(1) information necessary to understand the financial
health of the Program participant;
(2) income from past project development;
(3) the certifications that the Program participant is
seeking to obtain;
(4) employee data including salaries, length of
service and demographics;
(5) subcontractor data including demographics (if
available or applicable); and
(6) community profit-sharing and joint ownership data
(if available or applicable).
(b) The Regional Primes Program Leads shall to the
greatest extent practical establish a monthly metric reporting
system with each of the participating contractors and track

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the metrics for progress against the contractor's work plan
and Program goals. Regional Primes Program Leads shall
compile, and require Program participants to provide
information for, the following metrics on a monthly basis:
(1) information necessary to understand the financial
health of the Program participant;
(2) information about project development including
bids submitted, projects started, projects completed and
related project-based expenses and income, and the
percentage of projects where contractor is acting as the
prime contractor;
(3) the certifications that the Program participant is
seeking to obtain and progress in obtaining those
certifications;
(4) employee data including salaries, length of
service and demographics, as well as whether any newly
hired employees are graduates of programs contained in the
Clean Jobs Workforce Hub Act;
(5) subcontractor data (if applicable) including
demographics, details on salaries, length of service and
demographics of any industry jobs created, and whether the
subcontractors are participants in or graduates of
programs contained in Part 10 of this Act;
(6) community profit-sharing and joint ownership data
(if available or applicable);
(7) amounts of grants and loans provided through the

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Program;
(8) log of completed Program activities including
personalized training, coaching, and approximate hours of
Program support;
(9) log of interaction with the participant's Mentor
Company and the participant's satisfaction with the Mentor
Company relationship;
(10) information on the Program participant's
satisfaction with Regional Primes Program Lead and the
Program overall; and
(11) Upon graduation from the Program, participants
shall continue to provide metric data outlined in (1),
(4), (5) and (6) annually for 10 years.
(c) In accordance with the goal of creating an
individualized experience for each participant, nonperformance
issues with Program participants will be addressed with
one-on-one coaching from the Regional Primes Program Lead and
necessary resources. Individual contractor performance issues
shall be reported up to the Primes Program Administrator on a
quarterly basis with issues designated as "resolved", "in
remediation", or "needing a resolution" as appropriate.
(d) Individual contractors can request assignment to a
different Mentor Company if warranted.
Section 5-1530. Regional cohort and program-level metrics
and goals.

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(a) Regional Primes Program Leads shall report the
following metrics and progress on indicated goals to the
Primes Program Administrator on a timeline established by the
Primes Program Administrator:
(1) cohort recruiting efforts, including the geography
targeted, events held, budget allocated for recruiting,
and audience-appropriateness of language and graphics in
all Program materials;
(2) program applications received;
(3) participant selection data including racial and
geographic breakdown;
(4) program participants with ongoing issues as
described in subsection (c) of Section 5-1525 of this
Part;
(5) retention of participants in each cohort;
(6) total projects bid, started, and completed by
participants, including information about revenue, hiring,
and subcontractor relationships with projects;
(7) total certifications issued;
(8) employment data for contractor hires and industry
jobs created including demographic, salary, length of
service and geographic data;
(9) grants and loans distributed;
(10) hours logged in activities including the
mentorship program; and
(11) program participant satisfaction with the

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Program.
(b) The Primes Program Administrator shall compile data at
both the regional level and the overall Program level and
create quarterly reports for the Department and the Advisory
Board and an annual report for the Illinois General Assembly.
Reporting provided to the Department and General Assembly will
be anonymized to protect the data of Program participants,
although some reporting by zip code or other geographic
segment may be included. It will highlight how the Program is
building wealth through increased revenues of participating
companies, new hiring, creation of industry jobs, increased
revenues of the larger pool of BIPOC subcontractors and
through community arrangements that provide for passive income
streams and asset ownership.
Section 5-1535. Mentorship Program
(a) The Regional Primes Program Leads shall recruit
private companies to serve as mentors to Program participants.
The primary role of the Mentor Companies shall be to assist
Program participants in succeeding in the clean energy
industry.
(b) The Primes Program Administrator may select Mentor
Companies with the following qualifications:
(1) excellent standing with state clean energy
programs;
(2) 4 or more years of experience in the field in which

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they will serve as a Mentor Company; and
(3) a proven track record of success in the field in
which they will serve as a Mentor Company.
(c) The Regional Primes Program Leads shall collaborate
with Mentor Companies and the mentee Program participants to
create a plan for ongoing contact in opportunities such as
on-the-job training, site walkthroughs, business process and
structure walkthroughs, quality assurance and quality control
reviews, and other relevant activities. Mentor Companies may
identify what level of stipend they require.
(d) The Regional Primes Program Lead shall recommend the
Mentor Company-mentee pairings and associated Mentor Company
stipends to the Primes Program Administrator for approval.
(e) The Regional Primes Program Lead shall conduct an
annual review of each Mentor Company-mentee pairing and
recommend whether it continues for a second year and the level
of stipend that is appropriate. The review will also ensure
that any profit-sharing and purchased services agreements
adhere to the guidelines established by the Primes Program
Administrator.
Section 5-1540. Program budget.
(a) The Department shall allocate $3 million annually to
the Primes Program Administrator for each of the 3 regional
budgets from the Energy Community Reinvestment Fund.
(b) Each regional budget will be developed collaboratively

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by the Primes Program Administrator and the corresponding
Regional Primes Program Lead. The budget will cover Program
administration, Program publicity and candidate recruitment,
training and certification costs, operational support grants
for Program participants, Mentor Company stipends and loan
loss reserves for contractor capitalization as well as other
costs the Primes Program Administrator deems to be necessary
or beneficial for the implementation of the Program.
(c) The Primes Program Administrator shall conduct
budgeting in conjunction with Illinois Clean Energy Jobs and
Justice Fund or comparable financing institution so that loan
loss reserves are sufficient to underwrite $7 million in
low-interest loans in each of the 3 regions.
(d) All available grant and loan funding should be made
available to Program participants in a timely fashion.
Part 20. Returning Residents Program
Section 5-2001. Purpose. The Returning Residents Clean
Jobs Training Program shall be established within the Illinois
Department of Commerce and Economic Opportunity in an effort
to assist inmates in their rehabilitation through training
that prepares them to successfully hold employment in the
clean energy jobs sector upon their release from
incarceration.

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Section 5-2005. Definitions. As used in this Part:
"Commitment" means a judicially determined placement in
the custody of the Department of Corrections on the basis of
conviction or delinquency.
"Committed person" means a person committed to the
Department of Corrections.
"Correctional institution or facility" means a Department
of Corrections building or part of a Department of Corrections
building where committed persons are detained in a secure
manner.
"Discharge" means the end of a sentence or the final
termination of a detainee's physical commitment to and
confinement in the Department of Corrections.
"Program" means the clean energy jobs instruction
established by this Part.
"Program Administrator" means the person or entity
selected to administer and coordinate the work of the Illinois
Returning Residents Clean Jobs Training Program as established
in Section 5-2030 of this Part.
"Regional Administrator" means the person or entity
selected to administer and coordinate programs as described in
Section 5-130 of Part 1 of this Act.
"Returning resident" means any United States resident who
is: 17 years of age or older; in the physical custody of the
Department of Corrections and scheduled to be re-entering
society within 12 months.

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Section 5-2010. Program.
(a) General. The Returning Residents Clean Jobs Training
Program shall be based on a curriculum designed to be as
similar as practical to the Clean Energy Jobs Training
Programs available for persons not committed as established in
Part 5 of this Act. The program shall include structured
hands-on activities in correctional institutions or
facilities, including classroom spaces and outdoor spaces, to
instruct participants in the core curriculum established in
Part 5 of this Act.
(b) Connected Services. The program shall be designed and
operated to allow participants to graduate from the program as
hireable in the solar power and energy efficiency industries.
The program shall provide participants with the knowledge and
ability to access the necessary mental health, case
management, and other support services, both during the
program and after graduation, to ensure they are successful in
the clean energy jobs sector.
(c) Recruitment of Participants. The Program
Administrators shall implement a recruitment process to
educate committed persons on the benefits of the program and
how to enroll in the program. This recruitment process must
reach both men's correctional institutions and facilities and
women's correctional institutions and facilities.
(d) Connection to Employers. The Program Administrators

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shall be responsible for connecting program graduates with
potential employers in the solar power and energy efficiency
and related industries. The Regional Administrators shall
assist the Program Administrators with this task.
(e) Graduation. Participants who successfully complete all
assignments in the program shall be considered graduates and
shall receive a program graduation certificate, as well as any
certifications earned in the process.
Section 5-2015. Administrative rules; eligibility.
(a) A committed person in a correctional institution or
facility is eligible if the committed person:
(1) is not prohibited by Illinois statute from
entering a residence or public building as a result of a
previous conviction;
(2) is within 12 months of expected release;
(3) volunteers, or is recommended to participate, with
a strong interest in the program and in securing and
keeping a clean energy job upon completion of the program
and release;
(4) meets all program and testing requirements;
(5) is willing to follow all program requirements; and
(6) is willing to participate in all prescribed
program events including the required wrap-around/support
services.
(b) The Department of Corrections shall provide data

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needed to determine eligibility and work with the Program
Administrator to select individuals for the training program.
Section 5-2020. Program entry and testing requirements.To
enter the Returning Residents Clean Jobs Training Program,
committed persons must complete a simple application, undergo
an interview and coaching session, and pass the Test for Adult
Basic Education. The Returning Residents Clean Jobs Training
Program shall include a one week "pre" program boot camp that
ensures the candidates understand and are interested in
continuing the program. Candidates that successfully complete
the "pre" program boot camp shall continue to the full
program.
Section 5-2025. Administrative rules; drug testing. A
clean drug test is required to complete the Returning
Residents Clean Jobs Training Program. A drug test shall be
administered at least once prior to graduation, and, if
positive, it shall not result in immediate expulsion, but
outreach must be performed to offer assistance and mitigation.
An additional clean test is then required to complete the
program.
Section 5-2030. Curriculum and program administration.
(a) Curriculum.
(1) General. The Returning Residents Clean Jobs

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Training Program shall be based on a curriculum designed
to be as similar as practical to the Clean Energy Jobs
Training Programs available for persons not committed as
established in Part 5 of this Act, with a focus on
preparing graduates for employment in the solar power and
energy efficiency industries.
(2) Curriculum design and public comment. The
Department shall design a draft curriculum for the
implementation of the Returning Residents Clean Jobs
Training Program by making adjustments to the Clean Energy
Jobs Training Programs curriculum to meet in-facility
requirements. The Department shall consult with the
Department of Corrections to ensure all curriculum
elements may be available within Department of Corrections
facilities. The Department shall then publish the draft
curriculum no more than 120 days after the effective date
of this Act, and solicit public comments on the draft
curriculum for at least 30 days prior to beginning program
implementation.
(3) Curriculum goals and skills. Program participants
shall be instructed in skills that prepare them for
employment in the clean energy industry. The Program shall
focus on solar and energy efficiency training, including
both technical and soft skills necessary for success in
the field.
(A) Solar power training. Program participants

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shall receive training focused on accessing
opportunities in the solar industry and earning the
necessary certifications to work in the solar industry
as a solar tech including installation, maintenance,
technical work, and sales.
(B) Energy efficiency training. Program
participants shall receive training focused on
accessing opportunities in the energy efficiency
industry and earning the necessary certifications to
work in the energy efficiency industry through
training in building science principles, sales of
solar technology, installation, maintenance, and the
skills needed to become an energy auditor, building
analyst, or HVAC Tech.
(C) Additional hard and soft skills for clean
energy jobs. Training shall include, but is not
limited to, job readiness training, mental health
assessment and services, and addiction recovery
services.
(4) Guidebook. The Program Administrators shall
collaborate to create and publish a guidebook that allows
for the implementation of the curriculum and provides
information on all necessary and useful resources for
program participants and graduates.
(b) Program administration.
(1) Program administrators.

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(A) Within 210 days after the effective date of
this Act, the Department shall complete the following:
(i) Convene a comprehensive stakeholder
process that includes, at minimum, representatives
from community-based organizations in
environmental justice communities,
community-based organizations serving low-income
persons and families, community-based
organizations serving energy workers, and labor
unions, to seek input on the administration of
this program.
(ii) Gather input from the comprehensive
stakeholder process and publish a summary of the
input received during the stakeholder process,
along with an implementation plan incorporating
input from the stakeholder process on the
Department website or the initial Program website.
The implementation plans shall also be provided to
the Advisory Board.
(iii) Hold a 30-day public comment period
seeking input on the implementation plans.
(iv) In consultation with the Regional
Administrators and Advisory Board, select a
Program Administrator for each of the three
regions: North, Central, and South, to administer
and coordinate the work of the Illinois Returning

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Residents Clean Jobs Training Program. Candidates
shall be evaluated with input from the Advisory
Board.
(B) The Program Administrators shall have strong
capabilities, experience, and knowledge related to
program development and economic management; cultural
and language competency needed to be effective in the
respective communities to be served; expertise in
working in and with BIPOC and environmental justice
communities; knowledge and experience in working with
providers of clean energy jobs; and awareness of solar
power and energy efficiency industry trends and
activities, workforce development best practices, and
regional workforce development needs, and community
development. The Program Administrators shall
demonstrate a track record of strong partnerships with
community-based organizations.
(C) The Program Administrators shall coordinate
with Regional Administrators and the Clean Jobs
Workforce Hubs Network Program to ensure execution,
performance, partnerships, marketing, and program
access across the State that is as consistent as
possible while respecting regional differences. The
Program Administrators shall work with partner
community-based organizations in their respective
regions and Program Delivery Areas to deliver the

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Program.
(D) The Program Administrators shall collaborate
to create and publish an employer "Hiring Returning
Residents" handbook that includes benefits and
expectations of hiring returning residents, guidance
on how to recruit, hire, and retain returning
residents, guidance on how to access state and federal
tax credits and incentives, resources from federal and
state, guidance on how to update company policies to
support hiring and supporting returning residents, and
an understanding of the harm in one-size fits all
policies toward returning residents. The handbook
shall be updated every 5 years or more frequently if
needed to ensure its contents are accurate. The
handbook shall be made available on the Department's
website.
(E) The Program Administrators shall work with
potential employers and employers who hire graduates
to collect data needed to ensure program participant
success and to evaluate success of the program,
including, but not limited to:
(i) candidates interviewed and hiring status;
(ii) graduate employment status, such as hire
date, salary grade changes, hours worked, and
separation date;
(iii) key demographics by project or project

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category; and
(iv) continuing education and certifications
gained by program graduates.
The Program Administrators will work with
potential employers to promote company policies to
support hiring and supporting returning residents via
employee/employer liability, coverage, insurance,
bonding, training, hiring practices, and retention
support. The Program Administrator will provide
services such as, but not limited to, job coaching and
financial coaching to program graduates to support
their employment longevity. The Program Administrators
shall report data needed to ensure program participant
success and to evaluate success of the program to the
Department, Regional Administrators, and Advisory
Board.
(F) The Program Administrators shall identify
clean energy job opportunities and assist participants
in achieving employment. The program shall include at
least one job fair; include job placement discussions
with clean energy employers; establish a partnership
with Illinois solar energy businesses and trade
associations to identify solar employers that support
and hire returning residents, and; involve the
Department, Regional Administrators, and the Advisory
Board in finding employment for participants and

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graduates in the solar power and energy efficiency
industries.
(G) The Program Administrators shall work with
graduates to maintain contact, including quarterly
check-ins, and ensure access to the necessary mental
health, case management, and other support services,
both during the program and after graduation, to
ensure they are successful in the clean energy jobs
sector.
(2) Community Organizations. Program Administrators
may contract with local community-based organizations to
provide program elements at each facility. Contracts with
local community-based organizations shall be initially
competitively selected by the Department within 330 days
after the effective date of this Act and shall be
subsequently competitively selected by the Department
every 5 years. Community-based organizations delivering
the program elements outlined may provide all elements
required or may subcontract to other entities for the
provision of portions of program elements, including, but
not limited to, administrative soft and hard skills for
program participants, delivery of specific training(s) in
the core curriculum, or provision of other support
functions for program delivery compliance. The Department
and the Regional Administrators shall collaborate to
develop uniform minimum contractual requirements for

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competitively selected community-based organizations to
provide the Program, uniform minimum contractual
requirements for all Program subcontracts, and uniform
templates for Requests For Proposals for all Program
subcontracts.
(3) Scheduling and Delays. The Department should aim
to include training in conjunction with other pre-release
procedures and movements. Delays in a workshop being
provided shall not cause delays in discharge. Detainees
may not be prevented from attending workshops due to
staffing shortages, lockdowns, conflicts with family or
legal visits, court dates, medical appointments,
commissary visits, recreational sessions, dining, work,
class, or bathing schedules. In case of conflict or
staffing shortages, returning residents must be given full
opportunity to attend a workshop at a later time.
(4) Coordination with Clean Jobs Workforce Hubs
Network Program, established by Part 5 of this Act to
Provide Pre-Release Training. The Program Administrators
may establish shortened Clean Jobs Training Programs at
facilities that are designed to prepare and place
graduates in the Clean Jobs Workforce Hubs following
release from commitment. These programs may focus on
technical skills that prepare participants for clean
energy jobs as well as other generalized workforce and
life skills necessary for success. Any graduate of these

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programs must be guaranteed placement in a Clean Jobs
Workforce Hub training program.
Section 5-2035. Advisory Board and program management.
(a) The Advisory Board shall review the Returning
Residents Clean Jobs Training Program, implement and enforce
the policies and requirements of the program and the Program
Administrators, and review, approve, and make adjustments to
the implementation policies and deliverables of the Program
Administrators and other program implementers. The Advisory
Board shall ensure that metrics and a reporting structure are
in place to support successful implementation. These metrics
shall include, but are not limited to:
(1) demographics of each entering and graduating
class;
(2) percent of graduates employed at 6 and 12 months
after release;
(3) recidivism rate of program participants at 3 and 5
years after release; and
(4) information on the type of employment, whether
full or part time or seasonal, and pay rates achieved by
program graduates.
The metrics and performance outcomes shall be shared with
the Department and with Program Administrators and
implementers for the program created by Part 5 of this Act. All
program implementers should have input before major changes to

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policy, metrics, or outcomes are determined. Program metrics
and performance outcomes shall be published on the
Department's website annually.
(b) The Director of the Department of Corrections shall
ensure that the wardens or superintendents of all correctional
institutions and facilities visibly post information on the
program in common areas of their respective institutions,
broadcast the same via in-house institutional information
television channels, and distribute updated information in a
timely, visible, and accessible manner.
(c) All program content and materials shall be distributed
annually to the Community Support Advisory Councils of the
Department of Corrections for use in re-entry programs across
this State.
Section 5-2040. Returning Residents Clean Jobs Training
Program monitoring and enforcement.
(a) The Director of Corrections shall ensure that wardens
or superintendents, program, educational, and security and
movement staff permit program workshops to take place, and
that returning residents are escorted to workshops in a
consistent and timely manner.
(b) Compliance with this Part shall be monitored by a
report published annually by the Department of Corrections
containing data, including numbers of returning residents who
enrolled in the program, numbers of returning residents who

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completed the program, and total numbers of individuals
discharged. Other data that shall be collected include the
number of people hired, the type of employment (full-time
versus part-time; permanent versus seasonal short-term
contract), the salary grade of people hired every 3 months,
certifications of people hired every 3 months, the demographic
mix of project teams per project, and the recidivism rate over
3 to 5 years. Data shall be disaggregated by institution,
discharge, or residence address of resident, and other
factors.
Section 5-2045. Funding. The Funding for this program
shall be subject to appropriation from the Energy Community
Reinvestment Fund and other sources. The Director of the
Department of Commerce and Economic Opportunity may, upon
consultation with the Director of Corrections, allocate
funding to the Department of Corrections as necessary to
offset costs incurred by the Departments of Corrections in
program implementation.
Section 5-2050. Access. The program instructors and staff
shall have access to Department of Corrections institutions
and facilities as needed, including, but not limited to,
classroom space and outdoor space, with an expectation that
they shall follow all facility procedures and protocols.

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Article 10. Illinois Clean Energy
Jobs and Justice Fund Act
Section 10-1. Short title. This Article may be cited as
the Illinois Clean Energy Jobs and Justice Fund Act.
References in this Article to "this Act" mean this Article.
Section 10-5. Purpose.
The purpose of this Act is to promote the health, welfare,
and prosperity of all the residents of this State by ensuring
access to financial products that allow Illinois residents and
businesses to invest in clean energy. Furthermore, the
Illinois Clean Energy Jobs and Justice Fund, is designed to
fill the following purposes:
(1) Ensure that the benefits of the clean energy
economy are equitably distributed;
(2) Make clean energy accessible to all through the
provision of innovative financing opportunities and grants
for Minority Business Enterprises (MBE) and other
contractors of color, and for low-income, environmental
justice, and BIPOC communities and the businesses that
serve these communities;
(3) Prioritize the provision of public and private
capital for clean energy investment to MBEs and other
contractors of color, and to businesses serving
low-income, environmental justice, and BIPOC communities;

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(4) Accelerate the flow of private capital into clean
energy markets;
(5) Assist low-income, environmental justice, and
BIPOC community utility customers in paying for solar and
energy efficiency upgrades through energy cost savings;
(6) Increase access to no- and low-cost loans for MBE
and other contractors of color;
(7) Develop financing products designed to compensate
for historical and structural barriers preventing
low-income, environmental justice, and BIPOC communities
from accessing traditional financing;
(8) Leverage private investment in clean energy
projects and in projects developed by MBEs and other
contractors of color; and
(9) Pursue financial self-sustainability through
innovative financing products.
Section 10-10. Definitions. For the purpose of this act,
the following terms shall have the following definitions:
"Black, indigenous, and people of color" or "BIPOC" is
defined as people who are members of the groups described in
subparagraphs (a) through (e) of paragraph (A) of subsection
(1) of Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
"Board" means the Board of Directors of the Illinois Clean
Energy Jobs and Justice Fund.

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"Contractor of color" means a business entity that is at
least 51% owned by one or more BIPOC persons, or in the case of
a corporation, at least 51% of the corporation's stock is
owned by one or more BIPOC persons; and the management and
daily business operations of which are controlled by one or
more of the BIPOC persons who own it. A contractor of color may
also be a nonprofit entity with a board of directors composed
of at least 51% BIPOC persons or a nonprofit entity certified
by the State of Illinois to be minority-led.
"Environmental justice communities" means the definition
of that term based on existing methodologies and findings used
by the Illinois Power Agency and its Administrator of the
Illinois Solar for All Program.
"Fund" means the Illinois Clean Energy Jobs and Justice
Fund.
"Low-income" means households whose income does not exceed
80% of Area Median Income (AMI), adjusted for family size and
revised every 5 years.
"Low-income community" means a census tract where at least
half of households are low-income.
"Minority-owned business enterprise" or "MBE" means a
business certified as such by an authorized unit of government
or other authorized entity in Illinois.
"Municipality" means a city, village, or incorporated
town.
"Person" means any natural person, firm, partnership,

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corporation, either domestic or foreign, company, association,
limited liability company, joint stock company, or association
and includes any trustee, receiver, assignee, or personal
representative thereof.
Section 10-15. Clean Energy Jobs and Justice Fund.
(a) Formation. Not later than 30 days after the effective
date of this Act, there shall be incorporated a nonprofit
corporation to be known as the "Clean Energy Jobs and Justice
Fund."
(b) Limitation. The Fund shall not be an agency or
instrumentality of the State Government.
(c) Full faith and credit. The full faith and credit of the
State of Illinois shall not extend to the Fund.
(d) Nonprofit status. The Fund shall:
(1) Be an organization described in subsection (c)
Section 501 of the Internal Revenue Code of 1986 and
exempt from taxation under subsection (a) of Section 501
of that Code;
(2) Ensure that no part of the income or assets of the
Fund shall inure to the benefit of any director, officer,
or employee, except as reasonable compensation for
services or reimbursement for expenses; and
(3) Not contribute to or otherwise support any
political party or candidate for elective office.

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Section 10-20. Board of directors.
(a) Board composition. The Fund shall be managed by, and
its powers, functions, and duties shall be exercised through,
a board to be composed of 11 members. The initial members of
the Board shall be selected as follows:
(1) Appointed members. Five members shall be appointed
by the Governor within 60 days after the effective date of
this Act. Members of the board shall be broadly
representative of the communities that the Fund is
designed to serve. Of such members:
(i) at least one member shall be selected from
each of the following geographic regions in the State:
northeast, northwest, central, and southern;
(ii) at least one member shall have experience in
providing energy-related services to low-income,
environmental justice, or BIPOC communities;
(iii) At least one member shall own or be employed
by an MBE or BIPOC-owned business focused on the
deployment of clean energy;
(iv) at least one member shall be a policy or
implementation expert in serving low-income,
environmental justice or BIPOC communities or
individuals, including environmental justice
communities, BIPOC communities, justice-involved
persons, persons who are or were in the child welfare
system, displaced energy workers, gender nonconforming

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and transgender individuals, or youth; and
(v) Board members can fulfill multiple criteria
(such as representing the southern region and a MBE or
BIPOC-owned business focused on the deployment of
clean energy).
(2) Elected members. Six members shall be elected
unanimously by the 5 members appointed pursuant to
subparagraph (A) within 120 days after the effective date
of this Act. Members of the board shall be broadly
representative of the communities that the Fund is
designed to serve. Of such members:
(i) at least one member shall be selected from
each of the following geographic regions in the State:
northeast, northwest, central, and southern;
(ii) at least one member shall be from a
community-based organization with a specific mission
to support racially and socioeconomically diverse
environmental justice communities;
(iii) at least one member shall own or be employed
by an MBE or BIPOC-owned business focused on the
deployment of clean energy;
(iv) at least one member shall be from an
organization specializing in providing energy-related
services to low-income, environmental justice, or
BIPOC communities; and
(v) Board members can fulfill multiple criteria

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(such as representing the southern region and an MBE
or BIPOC-owned business focused on the deployment of
clean energy).
(3) Terms. The terms of the initial members of the
Board shall be as follows:
(A) The 5 members appointed and confirmed under
paragraph (1) of subsection (a) of this Section shall
have initial 5-year terms.
(B) Of the 6 members elected under paragraph (2)
of subsection (a) of this Section, 3 shall have
initial 4-year terms and 3 shall have initial 3-year
terms.
(b) Subsequent composition and terms.
(1) Except for the selection of the initial members of
the Board for their initial terms under paragraph (1) of
subsection (a) of this Section, the members of the Board
shall be elected by the members of the Board.
(2) Disqualification. A member of the Board shall be
disqualified from voting for any position on the Board for
which such member is a candidate.
(3) Terms. All members elected pursuant to paragraph
(2) of subsection (a) of this Section shall have a term of
5 years.
(c) Qualifications. The members of the board shall be
broadly representative of the communities that the Fund is
designed to serve and shall collectively have expertise in

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environmental justice, energy efficiency, distributed
renewable energy, workforce development, finance and
investments, clean transportation, and climate resilience. Of
such members:
(1) not fewer than 2 shall be selected from each of the
following geographic regions in the State: northeast,
northwest, central, and southern;
(2) not fewer than 2 shall be from an MBE or
BIPOC-owned business focused on the deployment of clean
energy;
(3) not fewer than 2 shall be from a community-based
organization with a specific mission to support racially
and socioeconomically diverse environmental justice
communities; and
(4) not fewer than 2 shall be from an organization
specializing in providing energy-related services to
low-income, environmental justice, or BIPOC communities.
(5) Members of the board can fulfill multiple criteria
(such as representing the southern region and an MBE or
BIPOC-owned business focused on the deployment of clean
energy).
(d) Restriction on membership. No officer or employee of
the State or any other level of government may be appointed or
elected as a member of the Board.
(e) Quorum. Seven members of the Board shall constitute a
quorum.

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(f) Bylaws. The board shall adopt, and may amend, such
bylaws as are necessary for the proper management and
functioning of the Fund. Such bylaws shall include designation
of officers of the Fund and the duties of such officers.
(g) Restrictions. No person who is an employee in any
managerial or supervisory capacity, director, officer or agent
or who is a member of the immediate family of any such
employee, director, officer or agent of any public utility is
eligible to be a director. No director may hold any elective
position, be a candidate for any elective position, be a State
public official, be employed by the Illinois Commerce
Commission, or be employed in a governmental position exempt
from the Illinois Personnel Code.
(h) Director, Family Member Employment. No director, nor
member of his or her immediate family shall, either directly
or indirectly, be employed for compensation as a staff member
or consultant of the Fund.
(i) Meetings. The board shall hold regular meetings at
least once every 3 months on such dates and at such places as
it may determine. Meetings may be held by teleconference or
videoconference. Special meetings may be called by the
president or by a majority of the directors upon at least 7
days' advance written notice. The act of the majority of the
directors, present at a meeting at which a quorum is present,
shall be the act of the board of directors unless the act of a
greater number is required by this Act or bylaws. A summary of

HB0804 Engrossed - 96 - LRB102 10881 SPS 16211 b
the minutes of every board meeting shall be made available to
each public library in the State upon request and to
individuals upon request. Board of Director meeting minutes
shall be posted on the Fund's website within 14 days after
Board approval of the minutes.
(j) Expenses. A director may not receive any compensation
for his or her services but shall be reimbursed for necessary
expenses, including travel expenses incurred in the discharge
of duties. The board shall establish standard allowances for
mileage, room and meals and the purposes for which such
allowances may be made and shall determine the reasonableness
and necessity for such reimbursements.
(k) In the event of a vacancy on the board, the board of
Directors shall appoint a temporary member, consistent with
the requirements of the board composition, to serve the
remainder of the term for the vacant seat.
(l) The board shall adopt rules for its own management and
government, including bylaws and a conflict of interest
policy.
(m) The board of directors of the Fund shall adopt written
procedures for:
(1) adopting an annual budget and plan of operations,
including a requirement of board approval before the
budget or plan may take effect;
(2) hiring, dismissing, promoting, and compensating
employees of the Fund, including an affirmative action

HB0804 Engrossed - 97 - LRB102 10881 SPS 16211 b
policy and a requirement of board approval before a
position may be created or a vacancy filled;
(3) acquiring real and personal property and personal
services, including a requirement of board approval for
any non-budgeted expenditure in excess of 5 thousand
dollars;
(4) contracting for financial, legal, bond
underwriting and other professional services, including
requirements that the Fund (i) solicit proposals at least
once every 3 years for each such service that it uses, and
(ii) ensure equitable contracting with diverse suppliers;
(5) issuing and retiring bonds, bond anticipation
notes, and other obligations of the Fund; and
(6) awarding loans, grants and other financial
assistance, including (i) eligibility criteria, the
application process and the role played by the Fund's
staff and board of directors, and (ii) ensuring racial
equity in the awarding of loans, grants, and other
financial assistance.
(n) The board shall develop a robust set of metrics to
measure the degree to which the program is meeting the
purposes set forth in Section 5-10 of this Act, and especially
measuring adherence to the racial equity purposes set forth
there, and a reporting format and schedule to be adhered to by
the Fund officers and staff. These metrics and reports shall
be posted quarterly on the Fund's website.

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(o) The board of directors has the responsibility to make
program adjustments necessary to ensure the Clean Energy Jobs
and Justice Fund is meeting the purposes set forth in Section
5-10 of this Act. Fund officers and staff and the board of
directors are responsible for ensuring capital providers and
Fund officers and staff, partners, and financial institutions
are held to state and federal standards for ethics and
predatory lending practices and shall immediately remove any
offending products and sponsoring organizations from Fund
participation.
(p) The board shall issue annually a report reviewing the
activities of the Fund in detail and shall provide a copy of
such report to the joint standing committees of the General
Assembly having cognizance of matters relating to energy and
commerce. The report shall be published on the Fund's website
within 3 days after its submission to the General Assembly.
Section 10-25. Powers and duties.
(a) The Fund shall endeavor to perform the following
actions, but is not limited to these specified actions:
(1) Develop programs to finance and otherwise support
clean energy investment and projects as determined by the
Fund in keeping with the purposes of this Act.
(2) Support financing or other expenditures that
promote investment in clean energy sources in order to (i)
foster the development and commercialization of clean

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energy projects, including projects serving low-income,
environmental justice, and BIPOC communities, and (ii)
support project development by MBE and other contractors
of color.
(3) Prioritize the provision of public and private
capital for clean energy investment to MBEs and other
contractors of color, and to clean energy investment in
low-income, environmental justice, and BIPOC communities.
(4) Provide access to grants, no-cost, and low-cost
loans to MBEs and other contractors of color, including
those participating in the Illinois Clean Energy Black,
Indigenous, and People of Color Primes Contractor
Accelerator Program.
(5) Provide financial assistance in the form of
grants, loans, loan guarantees or debt and equity
investments, as approved in accordance with written
procedures.
(6) Assume or take title to any real property, convey
or dispose of its assets and pledge its revenues to secure
any borrowing, convey or dispose of its assets and pledge
its revenues to secure any borrowing, for the purpose of
developing, acquiring, constructing, refinancing,
rehabilitating or improving its assets or supporting its
programs, provided each such borrowing or mortgage, unless
otherwise provided by the board or the Fund, shall be a
special obligation of the Fund, which obligation may be in

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the form of bonds, bond anticipation notes or other
obligations which evidence an indebtedness to the extent
permitted under this chapter to Fund, refinance and refund
the same and provide for the rights of holders thereof,
and to secure the same by pledge of revenues, notes and
mortgages of others, and which shall be payable solely
from the assets, revenues and other resources of the Fund
and such bonds may be secured by a special capital reserve
Fund contributed to by the State.
(7) Contract with community-based organizations to
design and implement program marketing, communications,
and outreach to potential users of the Fund's products,
particularly potential users in low-income, environmental
justice, and BIPOC communities. These contracts shall
include funding to ensure that the contracted
community-based organizations provide materials and
outreach support, including payments for time and
expenses, to other community organizations, professional
organizations, and subcontractors that have an interest in
the Fund's financial products.
(8) Collect the following data and perform monthly and
quarterly reporting to the board in accordance with the
reporting format and schedule developed by the Board of
Directors:
(A) baseline data on capital sources/providers,
loan recipients, projects funded, loan terms, and

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other relevant financial data;
(B) diversity and equity data (race, gender,
socioeconomic, geographic region, etc.); and
(C) program administration and servicing data.
These reports shall be published to the Fund's website
monthly and quarterly. Reports published to the
website may be anonymized to protect the data of
individual program participants.
(9) Have the purposes as provided by resolution of the
Fund's board of directors, which purposes shall be
consistent with this Section and Section 5-10 of this Act.
No further action is required for the establishment of the
Fund, except the adoption of a resolution for the Fund.
(b) In addition to, and not in limitation of, any other
power of the Fund set forth in this Section or any other
provision of the general statutes, the Fund shall have and may
exercise the following powers in furtherance of or in carrying
out its purposes:
(1) have perpetual succession as a body corporate and
to adopt bylaws, policies and procedures for the
regulation of its affairs and the conduct of its business;
(2) make and enter into all contracts and agreements
that are necessary or incidental to the conduct of its
business;
(3) invest in, acquire, lease, purchase, own, manage,
hold, sell and dispose of real or personal property or any

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interest therein;
(4) borrow money or guarantee a return to investors or
lenders;
(5) hold patents, copyrights, trademarks, marketing
rights, licenses or other rights in intellectual property;
(6) employ such assistants, agents, and employees as
may be necessary or desirable; establish all necessary or
appropriate personnel practices and policies, including
those relating to hiring, promotion, compensation and
retirement, and engage consultants, attorneys, financial
advisers, appraisers and other professional advisers as
may be necessary or desirable;
(7) invest any funds not needed for immediate use or
disbursement pursuant to investment policies adopted by
the Fund's board of directors;
(8) procure insurance against any loss or liability
with respect to its property or business of such types, in
such amounts and from such insurers as it deems desirable;
(9) enter into joint ventures and invest in, and
participate with any person, including, without
limitation, government entities and private corporations,
in the formation, ownership, management and operation of
business entities, including stock and nonstock
corporations, limited liability companies and general or
limited partnerships, formed to advance the purposes of
the Fund, provided members of the board of directors or

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officers or employees of the Fund may serve as directors,
members or officers of any such business entity, and such
service shall be deemed to be in the discharge of the
duties or within the scope of the employment of any such
director, officer or employee, as the case may be, so long
as such director, officer or employee does not receive any
compensation or financial benefit as a result of serving
in such role; and
(10) all other acts necessary or convenient to carry
out the purposes of this Act.
(c) Before making any loan, loan guarantee, or such other
form of financing support or risk management for a clean
energy project, the Fund shall develop standards to govern the
administration of the Fund through rules, policies and
procedures that specify borrower eligibility, terms and
conditions of support, and other relevant criteria, standards,
or procedures.
(d) Capitalization. The Fund shall be capitalized with
$100 million from the Energy Community Reinvestment Fund
within the first year after the enacted date of this Act. The
Fund will receive additional capitalization of $40 million
each year thereafter. Funding sources specifically authorized
include, but are not limited to:
(1) funds repurposed from existing programs providing
financing support for clean energy projects, provided any
transfer of funds from such existing programs shall be

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subject to approval by the General Assembly and shall be
used for expenses of financing, grants and loans;
(2) any federal funds that can be used for the
purposes specified in this Act;
(3) charitable gifts, grants, contributions as well as
loans from individuals, corporations, university
endowments and philanthropic foundations; and
(4) earnings and interest derived from financing
support activities for clean energy projects backed by the
Fund.
(e) The Fund may enter into agreements with private
sources to raise capital.
(f) The Fund may assess reasonable fees on its financing
activities to cover its reasonable costs and expenses, as
determined by the board.
(g) The Fund shall make information regarding the rates,
terms and conditions for all of its financing support
transactions available to the public for inspection, including
formal annual reviews by both a private auditor conducted
pursuant this Section and the Comptroller, and provide details
to the public on the Internet, provided public disclosure
shall be restricted for patentable ideas, trade secrets,
proprietary or confidential commercial or financial
information, disclosure of which may cause commercial harm to
a nongovernmental recipient of such financing support and for
other information exempt from public records disclosure.

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(h) The powers enumerated in this Section shall be
interpreted broadly to effectuate the purposes established in
this Section and shall not be construed as a limitation of
powers.
Section 10-30. Primary responsibilities in early program
development.
(a) Consistent with the goals of this Act, the Fund has the
authority to pursue a broad range of financial products and
services. In early development of products and services
offered, the Fund should consider the following programs as
its initial set of investment initiatives:
(1) a solar lease, power-purchase agreement, or
loan-to-own product specifically designed to complement
and grow the Illinois Solar for All program;
(2) direct capitalization of contractors of color
participating in or graduating from the workforce and
business development programs established in the Clean
Jobs, Workforce and Contractor Equity Act;
(3) providing direct capitalization of community-based
projects in environmental justice communities through
upfront grants. Project applications should provide a
community benefit, align with environmental justice
communities, be in support of this Act's contractor and
workforce development goals, and support upfront planning,
development, and start up costs that often are not covered

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prior to applying for program incentives and other loan
products;
(4) Providing loan loss reserve products to secure
stable and low-interest financing for individual projects
and portfolios consistent with the goals of this Act that
would be otherwise unable to receive financing; and
(5) offering financing and administrative services for
municipal utilities and rural electric cooperatives to
create their own version of the on-bill Equitable Energy
Upgrade Program such as the Pay As You Save program
developed by the Energy Efficiency Institute.
Section 10-35. Executive director and fund management.
(a) The executive director hired by the board shall have
the same qualifications as a director pursuant to subsection
(d) Section 10-10 of this Act. The executive director may not
be a candidate for the Board of Directors while serving as
executive director. The executive director must have 5 or more
years of experience in equitable and inclusive financing
serving racially and socioeconomically diverse communities.
(b) To hire the executive director, the board shall adhere
to any applicable State or federal law prohibiting
discrimination in employment.
(c) The board shall require all applicants for the
position of executive director of the Fund to file a financial
statement consistent with requirements established by the

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board. The board shall require the executive director to file
a current statement annually.
(d) The Fund shall be administered by the executive
director and the staff and overseen by the Board of Directors.
Fund officers and staff shall receive training in how to best
provide services and support to low-income, environmental
justice, and BIPOC communities and on supporting borrowers
with loan applications, loan underwriting, and loan services.
Section 10-40. Dissolution. The Fund may dissolve or be
dissolved under the General Not for Profit Corporation Act.
Article 15. Community Energy, Climate, and Jobs Planning Act
Section 15-1. Short title. This Article may be cited as
the Community Energy, Climate, and Jobs Planning Act.
References in this Article to "this Act" mean this Article.
Section 15-5. Findings. The General Assembly makes the
following findings:
(1) The health, welfare, and prosperity of Illinois
residents require that Illinois take all steps possible to
combat climate change, address harmful environmental
impacts deriving from the generation of electricity,
maximize quality job creation in the emerging clean energy
economy, ensure affordable utility service, equitable and

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affordable access to transportation, and clean, safe,
affordable housing.
(2) The achievement of these goals will depend on
strong community engagement to ensure that programs and
policy solutions meet the needs of disparate communities.
(3) Ensuring that these goals are met without adverse
impacts on utility bill affordability, housing
affordability, and other essential services will depend on
the coordination of policies and programs within local
communities.
Section 15-10. Definitions. As used in this Act:
"Alternative energy improvement" means the installation or
upgrade of electrical wiring, outlets, or charging stations to
charge a motor vehicle that is fully or partially powered by
electricity; photovoltaic, energy storage, or thermal
resource; or any combination thereof.
"Disadvantaged worker" means an individual who is defined
as: (1) being homeless; (2) being a custodial single parent;
(3) being a recipient of public assistance; (4) lacking a high
school diploma or high school equivalency; (5) having a
criminal record or other involvement in the criminal justice
system; (6) suffering from chronic unemployment; (7) being
previously in the child welfare system; or (8) being a
veteran.
"Energy efficiency improvement" means equipment, devices,

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or materials intended to decrease energy consumption or
promote a more efficient use of electricity, natural gas,
propane, or other forms of energy on property, including, but
not limited to, all of the following:
(1) insulation in walls, roofs, floors, foundations,
or heating and cooling distribution systems;
(2) storm windows and doors, multi-glazed windows and
doors, heat-absorbing or heat-reflective glazed and coated
window and door systems, and additional glazing,
reductions in glass area, and other window and door system
modifications that reduce energy consumption;
(3) automated energy control systems;
(4) high efficiency heating, ventilating, or
air-conditioning and distribution system modifications or
replacements;
(5) caulking, weather-stripping, and air sealing;
(6) replacement or modification of lighting fixtures
to reduce the energy use of the lighting system;
(7) energy controls or recovery systems;
(8) day lighting systems;
(9) any energy efficiency project, as defined in
Section 825-65 of the Illinois Finance Authority Act; and
(10) any other installation or modification of
equipment, devices, or materials approved as a utility
cost-saving measure by the governing body.
"Energy project" means the installation or modification of

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an alternative energy improvement, energy efficiency
improvement, or water use improvement, or the acquisition,
installation, or improvement of a renewable energy system that
is affixed to a stabilized existing property (including new
construction).
"Governing body" means the county board or board of county
commissioners of a county or the city council or board of
trustees of a municipality.
"Local Employment Plan" means a bidding option that public
agencies may include in requests for proposals to incentivize
bidders to voluntarily plan to retain and create high-skilled
local manufacturing jobs; invest in preapprenticeship,
apprenticeship, and training opportunities; and develop
family-sustaining career pathways into clean energy industries
for disadvantaged workers in a specified local area. The Local
Employment Plan only applies to work that is not financed with
federal money.
"Local unit of government" means a county or municipality.
"Natural climate solutions" means conservation,
restoration, or improved land management actions that increase
carbon storage or avoid greenhouse gas emissions on natural
and working lands.
"Nature-based approaches for climate adaptation" means
actions that preserve, enhance, or expand functions provided
by nature that increase capacity to manage adverse conditions
created or exacerbated by climate change. "Nature-based

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approaches for climate adaptation" includes, but is not
limited to, the restoration of native ecosystems, especially
floodplains; installation of bioswales, rain gardens, and
other green stormwater infrastructure; and practices that
increase soil health and reduce urban heat island effects.
"Public agency" means the State of Illinois or any of its
government bodies and subdivisions, including the various
counties, townships, municipalities, school districts,
educational service regions, special road districts, public
water supply districts, drainage districts, levee districts,
sewer districts, housing authorities, and transit agencies.
"Renewable energy resource" includes energy and its
associated renewable energy credit or renewable energy credits
from wind energy, solar thermal energy, geothermal energy,
photovoltaic cells and panels, biodiesel, anaerobic digestion,
and hydropower that does not involve new construction or
significant expansion of hydropower dams. For purposes of this
Act, landfill gas produced in the State is considered a
renewable energy resource. "Renewable energy resource" does
not include the incineration or burning of any solid material.
"Renewable energy system" means a fixture, product,
device, or interacting group of fixtures, products, or devices
on the customer's side of the meter that use one or more
renewable energy resources to generate electricity, and
specifically includes any renewable energy project, as defined
in Section 825-65 of the Illinois Finance Authority Act.

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"U.S. Employment Plan" means a bidding option that public
agencies may include in requests for proposals to incentivize
bidders to voluntarily plan to retain and create high-skilled
U.S. manufacturing jobs; invest in preapprenticeship,
apprenticeship, and training opportunities; and develop
family-sustaining career pathways into clean energy industries
for disadvantaged workers throughout the U.S. The U.S.
Employment Plan only applies to work financed with federal
money.
"Water use improvement" means any fixture, product,
system, device, or interacting group thereof for or serving
any property that has the effect of conserving water resources
through improved water management, efficiency, or thermal
resource.
Section 15-15. Community Energy, Climate, and Jobs Plans;
creation.
(a) Pursuant to the procedures in Section 15-20, a local
unit of government may establish Community Energy, Climate,
and Jobs Plans and identify boundaries and areas covered by
the Plans.
(b) Community Energy, Climate, and Jobs Plans are intended
to aid local governments in developing a comprehensive
approach to combining different energy, climate, and jobs
programs and funding resources to achieve complementary
impact. An effective planning process may:

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(1) help communities discover ways that their local
government, businesses, and residents can control their
energy use and bills;
(2) ensure a cost-effective transition away from
fossil fuels in the transportation sector;
(3) expand access to workforce development and job
training opportunities for disadvantaged workers in the
emerging clean energy economy;
(4) incentivize the creation and retention of quality
Illinois jobs (when federal funds are not involved) in the
emerging clean energy economy;
(5) incentivize the creation and retention of quality
U.S. jobs in the emerging clean energy economy;
(6) promote economic development through improvements
in community infrastructure, transit, and support for
local business;
(7) improve the health of Illinois communities by
reducing emissions, addressing existing brownfield areas,
and promoting the integration of distributed energy
resources;
(8) enable greater customer engagement, empowerment,
and options for energy services, and ultimately reduce
utility bills for Illinoisans;
(9) bring the benefits of grid modernization and the
deployment of distributed energy resources to economically
disadvantaged communities throughout Illinois;

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(10) support existing Illinois policy goals promoting
energy efficiency, demand response, and investments in
renewable energy resources;
(11) enable communities to better respond to extreme
heat and cold emergencies; and
(12) explore opportunities to expand and improve
carbon sequestration, recreational amenities, wildlife
habitat, flood mitigation, agricultural production,
tourism, and similar co-benefits by deploying natural
climate solutions and nature-based approaches for climate
adaptation.
(c) A Community Energy, Climate, and Jobs Plan may include
discussion of:
(1) the demographics of the community, including
information on the mix of residential and commercial areas
and populations, ages, languages, education, and workforce
training, including an examination of the average utility
bills paid within the community by class and census area,
the percentage and locations of individuals requiring
energy assistance, and participation of community members
in other assistance programs; and also including an
examination of the community's energy use, whether of
electricity, natural gas, or other fuels and whether for
transportation or other purposes;
(2) the geography of the community, including the
amount of green space, brownfield sites, farmland,

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waterways, flood zones, heat islands, areas for potential
development, location of critical infrastructure such as
emergency response facilities, health care and education
facilities, and public transportation routes;
(3) information on economic development opportunities,
commercial usage, and employment opportunities;
(4) the current status of zero-emission vehicles
operated by or on behalf of public agencies within the
community; and
(5) other topics deemed applicable by the community.
(d) A Community Energy, Climate, and Jobs Plan may address
the following areas:
(1) distributed energy resources, including energy
efficiency, demand response, dynamic pricing, energy
storage, and solar (thermal, rooftop, and community);
(2) building codes (both commercial and residential);
(3) vehicle miles traveled;
(4) transit options, including individual car
ownership, ride sharing, buses, trains, bicycles, and
pedestrian walkways;
(5) community assets related to extreme heat
emergencies, such as cooling and warming centers;
(6) public agency procurements of zero-emission,
electric vehicles; and
(7) networks of natural resources and infrastructure.
(e) A Community Energy, Climate, and Jobs Plan may

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conclude with proposals to:
(1) increase the use of electricity as a
transportation fuel at multi-unit dwellings;
(2) maximize the system-wide benefits of
transportation electrification;
(3) direct public agencies to implement tools, such as
the U.S. Employment Plan or a Local Employment Plan, to
incentivize manufacturers in clean energy industries to
create and retain quality jobs and invest in training,
workforce development, and apprenticeship programs in
connection to a major contract;
(4) test innovative load management programs or rate
structures associated with the use of electric vehicles by
residential customers to achieve customer fuel cost
savings relative to gasoline or diesel fuels and to
optimize grid efficiency;
(5) increase the integration of distributed energy
resources in the community;
(6) significantly expand the percentage of net-zero
housing and net-zero buildings in the community;
(7) improve utility bill affordability;
(8) increase mass transit ridership;
(9) decrease vehicle miles traveled;
(10) reduce local emissions of greenhouse gases, NOx,
SOx, particulate matter, and other air pollutants; and
(11) improve community assets that help residents

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respond to extreme heat and cold emergencies.
(f) A Community Energy, Climate, and Jobs Plan may be
administered by one or more program administrators or the
local unit of government.
(g) To be eligible for participation or funding through
the Clean Energy Empowerment Zone pilot projects, as provided
under Section 16-108.9 of the Public Utilities Act, or the
Carbon-Free Last Mile of Commutes Program, described in
Section 35 of the Electric Vehicle Act, a unit of local
government shall include in its Community Energy, Climate, and
Jobs Plans the information necessary for participation in
these programs and projects.
(1) Eligibility for funding or resources from the
Clean Energy Empowerment Zone pilot projects shall
require, at a minimum, the Plan to include information
necessary to determine whether the community qualifies as
a Clean Energy Empowerment Zone as described in Section
16-108.9 of the Public Utilities Act.
(2) Eligibility for funding or resources from the
Carbon-Free Last Mile of Commutes Program as described in
Section 35 of the Electric Vehicle Act shall require, at a
minimum, the Plan to include:
(A) information that allows the Department of
Commerce and Economic Opportunity to assess current
transportation and public transit infrastructure
within the boundaries identified by the unit of local

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government; and
(B) recommendations by the unit of local
government on how to use funds to increase carbon-free
last mile commuting.
(3) Units of local government may use previously
created Plans or reports to qualify for funding under this
subsection (g). The determination of which Plans qualify
shall be made liberally by the State agency or department
responsible for this determination, subject to the
conditions in paragraphs (1) and (2) of this subsection
(g).
Section 15-20. Community Energy, Climate, and Jobs
Planning process.
(a) An effective planning process shall engage with a
diverse set of stakeholders in local communities, including:
environmental justice organizations; economic development
organizations; faith-based nonprofit organizations;
educational institutions; interested residents; health care
institutions; tenant organizations; housing institutions,
developers, and owners; elected and appointed officials; and
representatives reflective of each local community.
(b) An effective planning process shall engage with
individual members of the community as much as possible to
ensure that the Plans receive input from as diverse a set of
perspectives as possible.

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(c) Plan materials and meetings related to the Plan shall
be translated into languages that reflect the makeup of the
local community.
(d) The planning process shall be conducted in an ethical,
transparent fashion, and continually review its policies and
practices to determine how best to meet its objectives.
Section 15-25. Joint Community Energy, Climate, and Jobs
Plans. A local unit of government may join with any other local
unit of government, or with any public or private person, or
with any number or combination thereof, under the
Intergovernmental Cooperation Act, by contract or otherwise as
may be permitted by law, for the implementation of a Community
Energy, Climate, and Jobs Plan, in whole or in part.
Article 20. Energy Community Reinvestment Act
Section 20-1. Short title. This Article may be cited as
the Energy Community Reinvestment Act. References in this
Article to "this Act" mean this Article.
Section 20-5. Findings. The General Assembly finds that,
as part of putting Illinois on a path to 100% renewable energy,
the State of Illinois should ensure a just transition to that
goal, providing support for the transition of Illinois'
communities and workers impacted by closures or reduced use of

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fossil fuel power plants, nuclear power plants, or coal mines
by allocating new economic development resources for business
tax incentives, workforce training, site clean-up and reuse,
and local tax revenue replacement.
The General Assembly finds and declares that the health,
safety, and welfare of the people of this State are dependent
upon a healthy economy and vibrant communities; that the
closure of fossil fuel power plants, nuclear power plants, and
coal mines across the State have a significant impact on their
surrounding communities; that the expansion of renewable
energy creates significant job growth and contributes
significantly to the health, safety, and welfare of the people
of this State; that the continual encouragement, development,
growth, and expansion of renewable energy within the State
requires a cooperative and continuous partnership between
government and the renewable energy sector; and that there are
certain areas in this State that have lost, or will lose, jobs
due to the closure of fossil fuel power plants, nuclear power
plants, and coal mines and need the particular attention of
government, labor, and the residents of Illinois to help
attract new investment into these areas and directly aid the
local community and its residents.
Therefore, it is declared to be the purpose of this Act to
explore ways of stimulating the growth of new private
investment, including renewable energy investment, in this
State and to foster job growth in areas impacted by the closure

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of coal energy plants, coal mines, and nuclear energy plants.
Section 20-10. Definitions. As used in this Act, unless
the context otherwise requires:
"State agencies" or "agencies" has the same meaning as
"State agencies" under Section 1-7 of the Illinois State
Auditing Act.
"Board" means the Clean Energy Empowerment Zone Board
created in Section 20-20.
"Clean Energy Empowerment Zone" or "Empowerment Zones"
means an area of the State certified by the Department as a
Clean Energy Empowerment Zone under this Act.
"Commission" means the Energy Transition Workforce
Commission created in Section 20-45.
"Department" means the Department of Commerce and Economic
Opportunity.
"Displaced energy worker" means an energy worker who has
lost employment, or is anticipated by the Department to lose
employment within the next 2 years, due to the reduced
operation or closure of a fossil fuel power plant, nuclear
power plant, or coal mine.
"Energy worker" means a person who has been employed
full-time for a period of one year or longer, and within the
previous 5 years, at a fossil fuel power plant, a nuclear power
plant, or a coal mine located within the State of Illinois,
whether or not they are employed by the owner of the power

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plant or mine. Energy workers are considered to be full-time
if they work at least 35 hours per week for 45 weeks a year or
the 1,820 work-hour equivalent with vacations, paid holidays,
and sick time, but not overtime, included in this computation.
Classification of an individual as an energy worker continues
for 5 years from the latest date of employment or the effective
date of this Act, whichever is later.
"Environmental justice communities" means the definition
of that term based on existing methodologies and findings,
used and as may be updated by the Illinois Power Agency and its
program administrator in the Illinois Solar for All Program.
"Fossil fuel power plant" means an electric generating
facility powered by gas, coal, other fossil fuels, or a
combination thereof.
"Low-income" means persons and families whose income does
not exceed 80% of area median income, adjusted for family size
and revised every 2 years.
"Local labor market area" means an economically integrated
area within which individuals reside and find employment
within a reasonable distance of their places of residence or
can readily change jobs without changing their places of
residence.
"Renewable energy enterprise" means a company that is
engaged in the production, manufacturing, distribution, or
development of renewable energy resources and associated
technologies.

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"Renewable energy project" means a project conducted by a
renewable energy enterprise for the purpose of generating
renewable energy resources or energy storage.
"Renewable energy resources" has the meaning set forth in
Section 1-10 of the Illinois Power Agency Act.
"Rule" has the meaning set forth in Section 1-70 of the
Illinois Administrative Procedure Act.
Section 20-15. Designation of Clean Energy Empowerment
Zones.
(a) Purpose. It is the intent of the General Assembly that
designation of a community as a Clean Energy Empowerment Zone
shall be reserved for communities that have experienced
economic or environmental hardship due to the energy
transition or fossil fuel power generation and extraction. The
purpose of this Section 20-15 is to establish an efficient and
equitable process by which the Department and communities
across the State may seek the designation of Clean Energy
Empowerment Zones, thereby allowing for economic and
environmental benefits of the clean energy economy to be
obtained by communities that have been deprived of these
benefits. The process conducted by the Department, the Board,
and participating units of local government shall be as
transparent and inclusive as is reasonably practical.
(b) Notification of local governments. Within 30 days
after the effective date of this Act, the Department shall

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publish a notice on its website stating its intention to begin
the review of potential locations for Clean Energy Empowerment
Zone regional designations, and solicit information from the
public on this topic. Within 45 days after the effective date
of this Act, the Department shall submit a notice to the county
board of each jurisdiction in which a fossil fuel power plant,
coal mine, or nuclear power plant is located, informing the
local governments of their intention to develop a list of
Clean Energy Empowerment Zones, providing a basic explanation
of the benefits of designation as a Clean Energy Empowerment
Zone, and informing them of participation opportunities in the
designation process. The Department may notify other persons
or local government units of this process at any time.
(c) Proposed list of Clean Energy Empowerment Zones.
Within 120 days after the effective date of this Act, the
Department of Commerce and Economic Opportunity shall develop
a proposed list of geographic regions in Illinois that qualify
as Clean Energy Empowerment Zones. The Department shall work
with the Illinois Environmental Protection Agency, the
Commission on Environmental Justice, the Department of Labor,
the Department of Natural Resources, and community
organizations to identify regions impacted by the decline of
coal generation, gas generation, nuclear generation, and coal
mining to develop the recommended list of regions that qualify
for Clean Energy Empowerment Zone designations. The Department
shall furnish maps that identify the proposed boundaries of

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proposed Clean Energy Empowerment Zones, and include
justification for the inclusion or exclusion of certain
locations or regions. The proposed list shall be subject to
the notice and comment process established in subsection (e).
(d) Criteria for designation as a Clean Energy Empowerment
Zone. A region shall be proposed by the Department, and
certified by the Board as a Clean Energy Empowerment Zone if it
meets all of the following characteristics listed in
paragraphs (1) through (3) of this subsection (d).
(1) The region is a contiguous area, provided that a
Zone area may exclude wholly surrounded territory within
its boundaries;
(2) The region satisfies any additional criteria
established by the Department consistent with the purposes
of this Act; and
(3) The region meets one or more of the following:
(A) the area contains a fossil fuel or nuclear
power plant that was retired from service or has
significantly reduced service within 10 years before
the application for designation or will be retired or
have service significantly reduced within 5 years
following the application for designation;
(B) the area contains a coal mine that was closed
or had operations significantly reduced within 10
years before the application for designation or is
anticipated to be closed or have operations

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significantly reduced within 5 years following the
application for designation; or
(C) the area contains a nuclear power plant that
was decommissioned, but continued storing nuclear
waste before the effective date of this Act.
(e) Review and comment process. After developing the
proposed list of regions to be designated as Clean Energy
Empowerment Zones, or proposing additions to the list, the
Department shall conduct a 60-day public comment process, in
partnership with the other agencies, departments, and units of
local government where beneficial for the purposes of this
Section. The public comment process shall include, at a
minimum, 2 public hearings that are accessible to working
residents, shall prioritize the solicitation of feedback from
environmental justice communities and communities directly
impacted by the Clean Energy Empowerment Zone designation, and
shall provide for the submission of written comments through
the Internet.
Within 30 days after concluding the public comment
process, the Department shall modify or finalize the proposed
list of geographic regions that qualify as Clean Energy
Empowerment Zones and submit the list to the Clean Energy
Empowerment Zone Board for approval or modification as
described in Section 20-20.
(f) Local government self-designation. After the
Department submits its first list of proposed Clean Energy

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Empowerment Zones to the Board, units of local government may,
on an ongoing basis, submit applications to the Department to
designate an area wholly or partially in their jurisdiction as
a Clean Energy Empowerment Zone if the Department has not
proposed the region as a potential Clean Energy Empowerment
Zone to the Board. Multiple units of local government may
submit a joint application for designation if the proposed
region or regions fall partially or wholly within their
combined jurisdictions. A unit of local government may submit
an application to the Department if:
(1) the area meets the criteria for designation as a
Clean Energy Empowerment Zone established in subsection
(d); and
(2) the unit of local government has conducted at
least one public hearing within the proposed Zone area
considering all of the following questions: (A) whether to
create the Zone; (B) what local plans, tax incentives, and
other programs should be established in connection with
the zone; and (C) what the boundaries of the Zone should
be. Public notice of the hearing shall be published in at
least one newspaper of general circulation within the Zone
area, not more than 21 days nor less than 7 days before the
hearing.
An application submitted under this subsection (f) shall
include a certified copy of the ordinance designating the
proposed Zone; a map of the proposed Clean Energy Empowerment

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Zone, showing existing streets and highways; an analysis, and
any appropriate supporting documents and statistics,
demonstrating that the proposed zone area is qualified in
accordance with subsection (d); a statement detailing any tax,
grant, and other financial incentives or benefits, and any
programs, to be provided by the municipality or county to
renewable energy enterprises within the Zone, which are not
otherwise provided throughout the municipality or county; a
statement setting forth the economic development and planning
objectives for the Zone; an estimate of the economic impact of
the Zone, considering all of the tax incentives, financial
benefits and programs contemplated, upon the revenues of the
municipality or county; a specific definition of the
applicant's local labor market area; a transcript of all
public hearings on the Zone; and any additional information as
the Department may by rule require.
Within 60 days after receiving an application from a unit
of local government, the Department shall review the
application to determine whether the designated area qualifies
as a Clean Energy Empowerment Zone under this Section, and
submit its recommendation to the Clean Energy Empowerment Zone
Board including all necessary information and records for the
Board to review, as described in Section 20-20. Within 7 days
after submitting the recommendation to the Board, the
Department shall provide a copy of its recommendation to the
applicant, including all supporting documents and information

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submitted to the Board.
(g) Application process. The Department shall, no later
than July 1, 2021, develop an ongoing application process for
Clean Energy Empowerment Zone applications by units of local
government. The application process shall be open during the
period of July 1, 2021 through January 1, 2050. The
Department, or any predecessor of the Department, may extend
the application process beyond that date if it deems it is
necessary or prudent to accomplish the purpose of this Act.
(h) Length of designation. A Clean Energy Empowerment Zone
designation lasts for 10 years from the effective date of the
designation and shall be subject to review by the Board after
10 years for an additional 10-year designation beginning on
the expiration date of the Clean Energy Empowerment Zone.
During the review process, the Board shall consider the costs
incurred by the State and units of local government as a result
of benefits received by the Clean Energy Empowerment Zone.
(i) Emergency rulemaking. The Department has emergency
rulemaking authority for the purpose of implementation of this
Section until 12 months after the effective date of this Act as
provided under Section 5-45 of the Illinois Administrative
Procedure Act.
Section 20-20. Clean Energy Empowerment Zone Board.
(a) A Clean Energy Empowerment Zone Board is hereby
created within the Department.

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(b) The Board shall consist of 8 voting members, one of
whom shall be the Director of Commerce and Economic
Opportunity, or his or her designee, who shall serve as
chairperson; one of whom shall be the Director of Revenue, or
his or her designee; 2 of whom shall be members appointed by
the Governor, with the advice and consent of the Senate; one of
whom shall be appointed by the Speaker of the House of
Representatives; one of whom shall be appointed by the
President of the Senate; one of whom shall be appointed by the
Minority Leader of the House; and one of whom shall be
appointed by the Minority Leader of the Senate. Designees
shall be appointed within 60 days after a vacancy. No fewer
than 4 of the 8 voting members shall consist of low-income
residents or residents of environmental justice communities.
At least one of the Board members shall be a representative of
organized labor. All meetings shall be accessible, with
rotating locations, call-in options, and materials and agendas
circulated well in advance, and there shall also be
opportunities for input outside of meetings from those with
limited capacity and ability to attend, via one-on-one
meetings, surveys, and calls.
Board members shall serve without compensation, but may be
reimbursed for necessary expenses incurred in the performance
of their duties from funds appropriated for that purpose. Each
member appointed shall have at least 5 years of experience in
business development or economic development. The Department

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of Commerce and Economic Opportunity shall provide
administrative support to the Board, including the selection
of a Department staff member to serve as a Board Liaison
between the Department and the Advisory Board.
(c) All final actions by the Board pursuant to this
subsection (c) shall require approval by a simple majority of
the Board. The Board shall have the following duties:
(1) reviewing applications and extensions for
designation as a Clean Energy Empowerment Zone, including
Department recommendations, testimony from public
hearings, public comment, and supporting materials;
(2) voting to approve, disapprove, or modify
applications for designation and extensions as a Clean
Energy Empowerment Zones;
(3) the approval of tax credits under the Clean Energy
Empowerment Zone Tax Credit Act; and
(4) modifying applications for designation or
extensions as a Clean Energy Empowerment Zone before
approval.
(d) Deadlines for responses by the Board. Within 60 days
after submission of applications or tax credits, pursuant to
subsection (c) of this Section, to the Board by the
Department, the Board shall approve, disapprove, or modify
applications for certification of regions as Clean Energy
Empowerment Zones. If the Board does not take final action on a
submission within 60 days after the submission, the

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application submitted by the Department shall be considered
approved, and the regions proposed in the application shall be
certified as Clean Energy Empowerment Zones.
Section 20-25. Incentives for renewable energy enterprises
located within a Clean Energy Empowerment Zone.
(a) Renewable energy enterprises located in Clean Energy
Empowerment Zones are eligible to apply for a State income tax
credit under the Clean Energy Empowerment Zone Tax Credit Act.
(b) Renewable energy enterprises located in Clean Energy
Empowerment Zones are eligible to receive an investment credit
subject to the requirements of paragraph (1) of subsection (f)
of Section 201 of the Illinois Income Tax Act.
(c) Renewable energy enterprises are eligible to purchase
building materials exempt from use and occupation taxes to be
incorporated into their renewable energy projects within the
Clean Energy Empowerment Zone when purchased from a retailer
within the Clean Energy Empowerment Zone under Section 5k-5 of
the Retailers' Occupation Tax Act.
(d) Renewable energy enterprises located in a Clean Energy
Empowerment Zone that meet the qualifications of Section
9-222.1B of the Public Utilities Act are exempt, in part or in
whole, from State and local taxes on gas and electricity.
(e) Preference for procurements shall be conducted by the
Illinois Power Agency as described in subparagraph (P) of
paragraph (1) of subsection (c) of Section 1-75 of the

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Illinois Power Agency Act.
Section 20-30. State incentives regarding public services
and physical infrastructure.
(a) The State Treasurer is authorized and encouraged to
place deposits of State funds with financial institutions
doing business in a Clean Energy Empowerment Zone.
(b) This Act does not restrict tax incentive financing
under Division 74.4 of Article 11 of the Illinois Municipal
Code.
Section 20-35. Supporting impacted communities.
(a) No later than July 1, 2021, the Department shall
develop a process for accepting applications from units of
local government included in Clean Energy Empowerment Zones to
mitigate the impact of an annual reduction of at least 30% in
the sum of property tax revenue or other direct payments, or
both, from fossil fuel power plants or coal mines to local
governments due to the retirement, or reduced operation, of
the power plant or mine that occurred after January 1, 2016. In
the case of reduced operation, the proposal may only be
accepted if the reduction in operation is reasonably expected
to be permanent. The Department shall accept applications on
an ongoing basis after beginning the program. Local government
units may submit applications jointly.
(b) The Department shall use available funds from the

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Energy Community Reinvestment Fund, subject to the provisions
of subsection (c) of Section 20-70, to provide payments to
communities for a period of no longer than 5 years from the
approval of their proposal, subject to the following
restrictions:
(1) Payments shall be assessed based on need, taking
into consideration the net amount of any increase in
payments from any other State source, including, but not
limited to, funding provided based on an evidence-based
funding formula developed by the Illinois State Board of
Education.
(2) The highest annual payment to the unit of local
government cannot exceed the lower value of either (i) the
average annual sum of property tax and other direct
payments from the fossil fuel power plant or coal mine to
the unit of local government from the most recent 3
taxable years before the reduction or cessation of
operation of the fossil fuel power plant or coal mine, or
(ii) the difference between projected local government
revenue for the years for which assistance is requested
(taking into account reasonably anticipated new revenue
sources) and the average local government revenue from the
most recent 3 taxable years before the reduction or
cessation of fossil fuel power plant or coal mine
operation. The Department may choose to consider budget
information from prior years if doing so allows the

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Department to better measure the revenue impacts of the
energy transition.
(3) The Department shall not provide funding under
this Program that exceeds the amount specified in this
paragraph (3) to any local government unit. Each unit of
local government shall not be granted by the Department a
total amount of funding over the lifetime of this Program,
for each fossil fuel power plant or coal mine, that is
greater than 5 times the average annual sum of property
tax payments and other direct payments from the fossil
fuel power plant or coal mine to the unit of local
government, calculated based on the most recent 3 taxable
years that occurred before the reduction or cessation of
operation of the fossil fuel power plant or coal mine.
(4) The Department may develop a payment schedule that
phases out support over time, based on its analysis of
available present and anticipated future funding in the
Energy Community Reinvestment Fund or other reasons
consistent with the purposes of this Act.
(5) If the total amount of qualified proposals exceeds
the available present and anticipated future funding in
the Energy Community Reinvestment Fund, the Department may
prorate payments to units of local government, or
prioritize communities for investment based on an
environmental justice screen in coordination with the
Commission on Environmental Justice, and input from

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stakeholders. The Department shall allocate funding in an
equitable and effective manner. Nothing in this Act shall
be interpreted to infer that units of local government
have a right to revenue replacement from the State.
(6) Funding allocated under this program may not be
used to support fossil fuel power plants, nuclear power
plants, or coal mines in any form. Any local government
unit that uses funds provided under this Act to support
fossil fuel power plants, nuclear power plants, or coal
mines shall reimburse the State for all funding used for
that purpose. If requested, the Department shall provide
guidance to local government units on whether a proposed
use of funds is considered a violation of this
requirement.
(7) At least once every 2 years following the
allocation of funds for this program, the Department shall
publish a document available online detailing the
allocation of funds, including a map that shows the
geographic distribution of the funds and the locations of
Clean Energy Empowerment Zones.
(c) The Department shall contact all units of local
government in Clean Energy Empowerment Zones and provide
information on the application process for funding under this
Section and a reasonable estimate of total funding that will
be available for this program. The Department shall request
that applications for funding contain the information

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necessary for the Department to evaluate the fiscal impact of
the energy transition on communities located in Clean Energy
Empowerment Zones; however the Department shall allow for
reasonable flexibility in the applications to accommodate
local government units that may have less resources available
to prepare an application. The Department shall, to the extent
practical, assist local government units in the application
process.
(d) The Department shall develop rules to implement the
provisions of this Section.
Section 20-40. Clean Energy Empowerment Task Forces.
(a) The Department and the Board shall work with local
stakeholders in Clean Energy Empowerment Zones to support the
convening of local Clean Energy Empowerment Task Forces.
(b) Local Clean Energy Empowerment Task Forces shall
include a broad range of local stakeholders to inform
transition needs and include, at a minimum, elected
representatives from municipal and State governments,
operators of local power plants or mines, multiple
representatives from community-based organizations, local
environmental, fish, or wildlife groups, organized labor, and
the Illinois Environmental Protection Agency.
(c) The Board shall put forward requests for proposals for
third-party facilitators for Task Forces in prioritized Clean
Energy Empowerment Zones based on need and those facing recent

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or near-term retirements of plants or mines.
(d) The Department shall work with local Task Forces to
develop local transition plans that identify economic,
workforce, and environmental health needs with strategies to
mitigate energy transition impacts and any accompanying
funding requests from the Energy Community Reinvestment Fund.
(e) As part of developing local transition plans, the
Department shall work with third-party facilitators and Task
Force members to gather and incorporate public comment and
feedback into a finalized transition plan.
(f) If the Department determines that a fossil fuel power
plant owner has failed to engage productively in stakeholder
meetings and with Clean Energy Empowerment Zone Task Forces,
the Department shall submit a notification to the Illinois
Environmental Protection Agency for enforcement actions and
the assessment of fees as described in Section 9.16 of the
Environmental Protection Act.
Section 20-45. Energy Transition Workforce Commission.
(a) The Energy Transition Workforce Commission is hereby
created within the Department of Commerce and Economic
Opportunity.
(b) The Commission shall consist of the following 8
members:
(1) the Director of Commerce and Economic Opportunity,
or his or her designee, who shall serve as chairperson;

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(2) the Director of Labor, or his or her designee;
(3) the 3 program administrators of the Clean Jobs
Workforce Hubs Program; and
(4) 3 members appointed by the Governor, with the
advice and consent of the Senate, of which at least one
shall be from organized labor and at least one shall be a
resident of an environmental justice community.
Designees shall be appointed within 60 days after a
vacancy.
(c) Members of the Commission shall serve without
compensation, but may be reimbursed for necessary expenses
incurred in the performance of their duties from funds
appropriated for that purpose. The Department of Commerce and
Economic Opportunity shall provide administrative support to
the Commission.
(d) Within 120 days after the effective date of this Act,
the Commission shall produce an Energy Transition Workforce
Report regarding the anticipated impact of the energy
transition and a comprehensive set of recommendations to
address changes to the Illinois workforce during the period of
2020 through 2050, or a later year. The report shall contain
the following elements, designed to be used for the programs
created in this Act:
(1) Information related to the impact on current
workers, including:
(A) a comprehensive accounting of all employees

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who currently work in fossil fuel energy generation,
nuclear energy generation, and coal mining in the
State; this shall include information on their
location, employer, salary ranges, full-time or
part-time status, nature of their work, educational
attainment, union status, and other factors the
Commission finds relevant; the Commission shall keep a
confidential list of these employees and the
information necessary to identify them for the purpose
of their eligibility to participate in programs
designed for their benefit;
(B) the anticipated schedule of closures of fossil
fuel power plants, nuclear power plants, and coal
mines across the State; when information is
unavailable to provide exact data, the report shall
include approximations based upon the best available
information;
(C) an estimate of worker impacts due to scheduled
closures, including layoffs, early retirements, salary
changes, and other factors the Commission finds
relevant; and
(D) the likely outcome for workers who are
employed by facilities that are anticipated to close
or have significant layoffs during their tenure or
lifetime.
(2) Information regarding impact on communities and

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local governments, including:
(A) changes in the revenue for units of local
government in areas that currently or recently have
had a closure or reduction in operation of a fossil
fuel power plant, nuclear power plant, coal mine, or
related industry;
(B) environmental impacts in areas that currently
or recently have had fossil fuel power plants, coal
mines, nuclear power plants, or related industry; and
(C) economic impacts of the energy transition,
including, but not limited to, the supply chain
impacts of the energy transition shift toward new
energy sources across the State.
(3) Information on emerging industries and State
economic development opportunities in regions that have
historically been the site of fossil fuel power plants,
nuclear power plants, or coal mining.
(e) Following the completion of each report, or if the
Department finds that it is prudent to begin before the
completion of a report, the Department shall coordinate with
the Commission to create a comprehensive draft plan for
designing, maintaining, and funding programs established under
this Act, including the Energy Workforce Development Program
created under Section 20-50, the Energy Community Development
Program created under Section 20-55, and the Displaced Energy
Workers Bill of Rights provided under Section 20-60. The draft

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plan shall include, at a minimum, the following information:
(1) A detailed accounting of the anticipated costs for
each program and the anticipated amount of funding that
will be provided for each program.
(2) Information on the locations at which each program
shall have services provided. If this information is not
yet known by the Department at the time of the plan's
drafting, the Department shall generally explain how they
intend to determine the program locations.
Within 120 days after the effective date of this Act, the
Department shall publish the draft plan online. The Department
shall take public comments on the draft plan for a period of no
less than 45 days and publish the final plan within 30 days
after the closing of the comment period.
(f) The Department shall periodically review its findings
in the developed reports and make modifications to the report
and programs based on new findings. The Department shall
conduct a comprehensive reevaluation of the report, and
publish a modified version along with a new draft plan, on each
of the following years following initial publication: 2023;
2027; 2030; 2035; 2040; and any year thereafter which the
Department determines is necessary or prudent.
Section 20-50. Energy Workforce Development Program.
(a) The purpose of the Energy Workforce Development
Program is to proactively assist energy workers in their

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search for economic opportunity.
(b) The Director of Commerce and Economic Opportunity
shall design, develop, and administer the Energy Workforce
Development Program. The Energy Workforce Development Program
shall include the following elements:
(1) comprehensive career services for displaced energy
workers, including advising displaced energy workers
looking for new positions on finding new employment or
preparing for retirement;
(2) communication services to provide displaced energy
workers advance notice of any power plant or coal mine
closures that are likely to result in a loss of employment
for the energy worker;
(3) administrative assistance for displaced energy
workers in applying for programs provided by the State,
the federal government, nonprofit organizations, or other
programs that are designed to offer career or financial
assistance;
(4) the creation and maintenance of a registry of all
persons in Illinois who qualify as an energy worker to use
for coordination with programs created under this Act or
other benefits for those workers, including all
information necessary or beneficial for the implementation
of this Act;
(5) the management of funding for services outlined in
this Section; and

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(6) financial advice for displaced energy workers
designed to assist workers with retirement, a change in
positions, pursuing an education, or other goals that the
energy worker has identified.
(c) In administering the Energy Workforce Development
Program, the Department shall develop and implement the
Program with the following goals:
(1) to use the recommendations and information
contained in the report created under Section 20-45 to
proactively plan for each phase of the energy transition
in Illinois;
(2) to increase access to the services contained in
this Program by locating services in different regions of
the State as dictated by the anticipated schedule of power
plant and coal mine closures and regional economic
changes;
(3) to maximize the efficiency of resources used;
(4) to design the Energy Workforce Development Program
to work in collaboration with the Displaced Energy Workers
Bill of Rights; and
(5) any other goals identified by the Department.
Section 20-55. Energy Community Development Program.
(a) The purpose of the Energy Community Development
Program is to proactively assist Clean Energy Empowerment Zone
communities in their search for economic opportunities leading

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up to and after the closure of a fossil fuel power plant,
nuclear power plant, or coal mine.
(b) The Director of Commerce and Economic Opportunity
shall, subject to appropriation, administer the Energy
Community Development Program. In administering the Energy
Community Development Program, the Department shall:
(1) assist local governments in Clean Energy
Empowerment Zones in finding private and public sector
partners to invest in regional development;
(2) assist units of local government in finding and
negotiating terms with businesses willing to relocate or
open new enterprises in regions impacted;
(3) provide coordination services to connect
organizations or persons seeking to use tax credits
created under Act with units of local government;
(4) conduct outreach and educational events for
private sector organizations for the purpose of attracting
investment in Clean Energy Empowerment Zones; and
(5) gather and incorporate public comment and feedback
so that local knowledge, priorities, and strengths help
shape and guide private and public development.
(c) In administering the Energy Community Development
Program, the Department shall develop and implement the
Program with the following goals:
(1) to increase private sector development in Clean
Energy Empowerment Zones;

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(2) to replace and improve employment opportunities in
Clean Energy Empowerment Zones for community members;
(3) to provide resources for Clean Energy Empowerment
Zone communities across the State, and avoid geographic
preferences in the allocation of resources; and
(4) to create a healthful environment for community
members in Clean Energy Empowerment Zones.
Section 20-60. Displaced Energy Workers Bill of Rights.
(a) The Department of Commerce and Economic Opportunity
shall implement the Displaced Energy Workers Bill of Rights
and shall be responsible for the implementation of the
Displaced Energy Workers Bill of Rights programs and rights
created under this Section. The Department shall provide the
following benefits to displaced energy workers listed in
paragraphs (1) through (4) of this subsection:
(1) Advance notice of power plant or coal mine
closure.
(A) The Department of Commerce and Economic
Opportunity shall notify all energy workers of the
upcoming closure of any qualifying facility at least 2
years in advance of the scheduled closing date.
(B) In providing the advance notice described in
this paragraph (1), the Department shall take
reasonable steps to ensure that all displaced energy
workers are educated on the various programs available

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through the Department to assist with the energy
transition.
(2) Employment assistance and career services. The
Department shall provide displaced energy workers with
assistance in finding new sources of employment through
the Energy Workforce Development Program established in
this Act.
(3) Full-tuition scholarship for Illinois institutions
and trade schools.
(A) The Department shall provide any displaced
energy worker with a full-tuition scholarship to any
of the following programs: (i) public universities in
this State; (ii) trade schools in this State; (iii)
community college programs in this State; or (iv)
union training programs in this State. The Department
may set cost caps on the maximum amount of tuition that
may be funded.
(B) The Department shall provide information and
consultation to displaced energy workers on the
various educational opportunities available through
this Program, and advise workers on which
opportunities meet their needs and preferences.
(C) Displaced energy workers who are eligible for
scholarships created under this Section by the date of
their enrollment shall be considered eligible for
scholarship funding for up to 4 years or until

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completion of their degree or certification, whichever
is the shorter duration.
(4) Financial Planning Services. Displaced energy
workers shall be entitled to services as described in the
energy worker Programs in this subsection, including
financial planning services.
(b) The owners of power plants with a nameplate capacity
of greater than 300 megawatts and the owners of coal mines
located in Illinois shall be required to comply with the
requirements set out in this subsection (b). The owners shall
be required to take the following actions:
(1) provide employment information for energy workers;
prior to the closure of an electric generating unit or
mine, the owners of the power plant or mine shall provide
energy workers information on whether there are employment
opportunities provided by their employer;
(2) provide extended health insurance for displaced
energy workers who are former employees of the power plant
owner that (A) costs no more than the average monthly
premium paid by the worker over the last 12 months and (B)
offers the same level of benefits, including, but not
limited to, coverage, in-network providers, deductibles,
and copayments covered during the previous 12 months;
companies that sell energy into auctions managed by the
Illinois Power Agency shall be required to offer 2 years
of health insurance following closure of an electric

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generating unit to employees who are not employed in new
positions that offer health insurance upon: (i) plant
closure; or (ii) employment termination; the Department
may require funding for health insurance to be provided in
advance of employment termination; and
(3) maintain responsible retirement account
portfolios; employees of qualifying facilities shall have
their retirement funds backed by financial tools that are
not economically dependent upon the success of their
employer's business.
Section 20-65. Consideration of energy worker employment.
(a) All State departments and agencies shall conduct a
review of the Department of Commerce and Economic
Opportunity's registry of energy workers to determine whether
any qualified candidates are displaced energy workers before
making a final hiring decision for a position in State
employment.
(b) The Department of Commerce and Economic Opportunity
shall inform all State agencies and departments of the
obligations created by this Section and take steps to ensure
compliance.
(c) Nothing in this Section shall be interpreted to
indicate that the State is required to hire displaced energy
workers for any position.
(d) No part of this Section shall be interpreted to be in

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conflict with federal or State civil rights or employment law.
Section 20-70. Energy Community Reinvestment Fund.
(a) The General Assembly hereby declares that management
of several economic development programs requires a
consolidated funding source to improve resource efficiency.
The General Assembly specifically recognizes that properly
serving communities and workers impacted by the energy
transition requires that the Department of Commerce and
Economic Opportunity have access to the resources required for
the execution of the programs in the Clean Jobs Workforce Hubs
Program, the Expanding Clean Energy Entrepreneurship Program,
and the Energy Community Reinvestment Act.
The intent of the General Assembly is that the Energy
Community Reinvestment Fund is able to provide all funding for
development programs created in the Clean Jobs Workforce Hubs
Program, the Expanding Clean Energy Entrepreneurship Program,
and the Energy Community Reinvestment Act, and that no
additional charge is borne by the taxpayers or ratepayers of
Illinois absent a deficiency.
(b) The Energy Community Reinvestment Fund is created as a
special fund in the State treasury to be used by the Department
of Commerce and Economic Opportunity for purposes provided
under this Section. The Fund shall be used to fund programs
specified under subsection (c). The objective of the Fund is
to bring economic development to communities in this State in

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a manner that equitably maximizes economic opportunity in all
communities by increasing efficiency of resource allocation
across the programs listed in subsection (c). The Department
shall include a description of its proposed approach to the
design, administration, implementation, and evaluation of the
Fund, as part of the Energy Transition Workforce Plan
described in this Act. Contracts that will be paid with moneys
in the Fund shall be executed by the Department.
(c) The Department shall be responsible for the
administration of the Fund and shall allocate funding on the
basis of priorities established in this Section. Each year,
the Department shall determine the available amount of
resources in the Fund that can be allocated to the programs
identified in this Section, and allocate the funding
accordingly. The Department shall, to the extent practical,
consider both the short-term and long-term costs of the
programs and allocate, save, or invest funding so that the
Department is able to cover both the short-term and long-term
costs of these programs using projected revenue.
The available funding for each year shall be allocated
from the Fund in the following order of priority:
(1) for costs related to the Clean Jobs Workforce Hubs
program in Part 5 of the Clean Jobs, Workforce and
Contractor Equity Act, up to $26,000,000 annually or 26%
of the available funding, whichever is less;
(2) for costs related to the program described by Part

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10 of the Clean Energy, Workforce and Contractor Equity
Act, up to $21,000,000 annually or 21% of the available
funding, whichever is less;
(3) for costs related to the Energy Community
Development programs in this Act, up to $2,000,000
annually or 2% of the available funding, whichever is
less;
(4) for costs related to the Energy Workforce
Development programs and the Displaced Energy Workers Bill
of Rights in this Act, including all programs created by
the Energy Transition Workforce Commission, up to
$13,000,000 annually or 21% of the available funding,
whichever is less. If 21% of the available funding is more
than $13,000,000, the amount over $13,000,000 is allocated
to the items in (1) through (3) by their relative
percentages until those programs are fully funded;
(5) for costs related to the Returning Residents Clean
Jobs Training Program described in Part 20 of the Clean
Jobs, Workforce and Contractor Equity Act, up to
$6,000,000 annually or 6% of the available funding,
whichever is less;
(6) for costs related to the Illinois Clean Energy
Black, Indigenous, and People of Color Primes Contractor
Accelerator Program described in Part 15 of the Clean
Jobs, Workforce and Contractor Equity Act, up to
$9,000,000 annually or 9% of the available funding,

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whichever is less;
(7) for costs, up to $100,000,000 annually, to support
units of local government in Clean Energy Empowerment
Zones, as described in Section 20-35;
(8) if the programs identified in paragraphs (1)
through (7) are fully funded and the Department reasonably
predicts they will be adequately funded in future years,
the Department shall transfer an amount equal to the
year's tax credits awarded through the programs of up to
$22,500,000 annually go the General Revenue Fund to offset
revenue reductions from tax credits provided under the
Clean Energy Empowerment Zone Tax Credit Act;
(9) to support the Low Income Home Energy Assistance
Program, up to $30,000,000 annually, to support additional
costs from the Percentage of Income Payment Program
expansion and energy assistance expansion;
(10) for the initial capital funding of the Clean
Energy Jobs and Justice Fund, $100,000,000 in the year
2022, or if the full funding is not available, the
Department may allocate these funds over several years as
quickly as is feasible; and
(11) if the programs identified in paragraphs (1)
through (10) are fully funded and the Department
reasonably predicts they shall be adequately funded in
future years, the Department shall transfer all surplus to
the General Revenue Fund.

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(d) No later than June 1, 2021, and by June 1 of each year
thereafter, the Department shall submit a notification to the
Illinois Environmental Protection Agency for the purpose of
implementing the energy community reinvestment fee as
described in Section 9.16 of the Environmental Protection Act.
The notification shall include the revenue and spending
requirements for the programs identified under the Energy
Community Reinvestment Act for the upcoming fiscal year, as
well as the projected spending for all program years through
Fiscal Year 2036. The projected revenue and spending need
identified for any program year shall be no less than
$400,000,000 per year for the calendar years 2021 through 2025
and $200,000,000 per year for all calendar years starting in
2026 that the Illinois electric sector generates greenhouse
gas emissions.
(e) If there is a funding shortfall for items identified
in paragraphs (1) through (4) of subsection (c), the
Department shall submit a request for funds to applicable
electric utilities for funds collected under subsection (k) of
Section 1-75 of the Illinois Power Agency Act up to
$25,000,000 per year to cover the shortfall. Upon notification
by utilities that sufficient funds are available for use under
the terms of paragraph (7) of subsection (k) of Section 1-75 of
the Illinois Power Agency Act, the Department shall send an
invoice to the applicable utilities for the amount requested.
Upon receipt, the funds shall be deposited into the Energy

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Community Reinvestment Fund.
(f) The Department shall, on an ongoing basis, seek out
and apply for funding from alternative sources to cover the
costs of these programs. Alternative sources may include the
federal government, other State programs, private foundations,
donors, or other opportunities for funding. The Department
shall, as described in subsection (c), use any additional
funding obtained for these programs to reduce or eliminate any
costs borne by taxpayers and ratepayers. Nothing in this
subsection (f) shall be interpreted to reduce or remove the
revenue requirements obtained by the Illinois Environmental
Protection Agency as described in subsection (d).
(g) Notwithstanding any other law to the contrary, the
Energy Community Reinvestment Fund is not subject to sweeps,
administrative chargebacks, or any other fiscal or budgetary
maneuver that would in any way transfer any amounts from the
Energy Community Reinvestment Fund into any other fund of the
State.
(h) The Department is granted all powers necessary for the
implementation of this Section.
Section 20-75. Administrative review. All final
administrative decisions, including, but not limited to,
funding allocation and rules issued by the Department under
this Act are subject to judicial review under the
Administrative Review Law. No action may be commenced under

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this Section prior to 60 days after the complainant has given
notice in writing of the action to the Department.
Article 25. Clean Energy Empowerment Zone Tax Credit Act
Section 25-1. Short title. This Article may be cited as
the Clean Energy Empowerment Zone Tax Credit Act. References
in this Article to "this Act" mean this Article.
Part 1.
Section 25-100. Definitions. As used in this Part 1:
"Applicant" means a person that is operating a business
located within the State of Illinois and has applied for an
income tax credit through a program under this Act.
"Basic wage" means compensation for employment that meets
the prevailing wage standards as defined by the Department.
"Certificate" means the tax credit certificate issued by
the Department under Section 25-125.
"Certificate of eligibility" means the certificate issued
by the Department under Section 25-110.
"Credit" means the amount awarded by the Department to an
applicant by issuance of a certificate under Section 25-125
for each new full-time equivalent employee hired or job
created.
"Department" means the Department of Commerce and Economic

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Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Former energy worker" means an individual who is
employed, or was employed, at a fossil fuel power plant,
nuclear power plant, or coal mine, and is listed in the
registry of energy workers developed by the Department of
Commerce and Economic Opportunity pursuant to Section 20-50 of
the Energy Community Reinvestment Act.
"Full-time employee" means an individual who is employed
at a prevailing wage for at least 35 hours each week, and
provided standard worker benefits, or who renders any other
standard of service generally accepted by industry custom or
practice as full-time employment. An individual for whom a W-2
is issued by a Professional Employer Organization is a
full-time employee if he or she is employed in the service of
the applicant for a basic wage for at least 35 hours each week
or renders any other standard of service generally accepted by
industry custom or practice as full-time employment. For the
purposes of this Act, such an individual shall be considered a
full-time employee of the applicant.
"Incentive period" means the period beginning on July 1
and ending on June 30 of the following year. The first
incentive period shall begin on July 1, 2021 and the last
incentive period shall end on June 30, 2040.
"New employee" means a full-time employee:

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(1) who first became employed by an applicant within
the incentive period whose hire results in a net increase
in the applicant's full-time Illinois employees and who is
receiving a prevailing wage as compensation; and
(2) who was previously employed in a fossil fuel power
plant, nuclear power plant, or coal mine in the State of
Illinois that has since closed or is a graduate of
training programs as established under Part 5 of the Clean
Jobs, Workforce and Contractor Equity Act.
"New employee" does not include:
(1) a person who was previously employed in Illinois
by the applicant or a related member prior to the onset of
the incentive period, unless the new employee is hired for
site remediation work; or
(2) a person who has a direct or indirect ownership
interest of at least 5% in the profits, capital, or value
of the applicant or a related member; or
(3) a person who has been hired to assist in the
production of fossil fuel derived energy directly or
indirectly, unless that person has been hired to assist in
the deconstruction of a fossil fuel power plant, the
deconstruction of a coal mine, the remediation of a site
formerly used for fossil fuel power production, or the
remediation of a coal mine.
"Noncompliance date" means, in the case of an applicant
that is not complying with the requirements of this Act, the

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day following the last date upon which the taxpayer was in
compliance with the requirements of this Act, as determined by
the Director under Section 25-135.
"Professional Employer Organization" has the same meaning
as ascribed to that term under Section 5-5 of the Economic
Development for a Growing Economy Tax Credit Act.
"Professional Employer Organization" does not include a day
and temporary labor service agency regulated under the Day and
Temporary Labor Services Act.
"Related member" means a person that, with respect to the
applicant during any portion of the incentive period, is any
one of the following:
(1) An individual, if the individual and the members
of the individual's family, as defined in Section 318 of
the Internal Revenue Code, own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the value of the outstanding profits,
capital, stock, or other ownership interest in the
applicant.
(2) A partnership, estate, or trust and any partner or
beneficiary, if the partnership, estate, or trust and its
partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or other
ownership interest in the applicant.
(3) A corporation, and any party related to the

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corporation, in a manner that would require an attribution
of stock from the corporation under the attribution rules
of Section 318 of the Internal Revenue Code, if the
applicant and any other related member own, in the
aggregate, directly, indirectly, beneficially, or
constructively, at least 50% of the value of the
corporation's outstanding stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own, in the
aggregate, at least 50% of the profits, capital, stock, or
other ownership interest in the applicant.
(5) A person to or from whom there is attribution of
stock ownership in accordance with subsection (e) of
Section 1563 of the Internal Revenue Code, except that for
purposes of determining whether a person is a related
member under this paragraph (5):
(A) stock owned, directly or indirectly, by or for
a partnership shall be considered as owned by any
partner having an interest of 20% or more in either the
capital or profits of the partnership in proportion to
his or her interest in capital or profits, whichever
such proportion is the greater;

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(B) stock owned, directly or indirectly, by or for
an estate or trust shall be considered as owned by any
beneficiary who has an actuarial interest of 20% or
more in such stock, to the extent of such actuarial
interest. For purposes of this subparagraph, the
actuarial interest of each beneficiary shall be
determined by assuming the maximum exercise of
discretion by the fiduciary in favor of such
beneficiary and the maximum use of such stock to
satisfy his or her rights as a beneficiary; and
(C) stock owned, directly or indirectly, by or for
a corporation shall be considered as owned by any
person who owns 20% or more in value of its stock in
that proportion which the value of the stock which the
person so owns bears to the value of all the stock in
the corporation.
Section 25-105. Powers of the Department. The Department,
in addition to those powers granted under the Civil
Administrative Code of Illinois, is granted and shall have all
the powers necessary or convenient to carry out and effectuate
the purposes and provisions of this Act, including, but not
limited to, power and authority to:
(1) Adopt rules deemed necessary and appropriate for
the administration of this Act; establish forms for
applications, notifications, contracts, or any other

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agreements; and accept applications at any time during the
year and require that all applications be submitted
electronically through the Internet.
(2) Provide guidance and assistance to applicants
under the provisions of this Act, and cooperate with
applicants to promote, foster, and support job creation
within this State.
(3) Enter into agreements and memoranda of
understanding for participation of and engage in
cooperation with agencies of the federal government, units
of local government, universities, research foundations or
institutions, regional economic development corporations,
or other organizations for the purposes of this Act.
(4) Gather information and conduct inquiries, in the
manner and by the methods it deems desirable, including,
without limitation, gathering information with respect to
applicants for the purpose of making any designations or
certifications necessary or desirable or to gather
information in furtherance of the purposes of this Act.
(5) Establish, negotiate, and effectuate any term,
agreement, or other document with any person necessary or
appropriate to accomplish the purposes of this Act, and
consent, subject to the provisions of any agreement with
another party, to the modification or restructuring of any
agreement to which the Department is a party.
(6) Provide for sufficient personnel to permit

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administration, staffing, operation, and related support
required to adequately discharge its duties and
responsibilities described in this Act from funds made
available through charges to applicants or from funds as
may be appropriated by the General Assembly for the
administration of this Act.
(7) Require applicants, upon written request, to issue
any necessary authorization to the appropriate federal,
State, or local authority or any other person for the
release to the Department of information requested by the
Department, with the information requested to include, but
not be limited to, financial reports, returns, or records
relating to the applicant or to the amount of credit
allowable under this Act.
(8) Require that an applicant shall at all times keep
proper books of record and account in accordance with
generally accepted accounting principles consistently
applied, with the books, records, or papers related to the
agreement in the custody or control of the applicant open
for reasonable Department inspection and audits, and
including, without limitation, the making of copies of the
books, records, or papers.
(9) Take whatever actions are necessary or appropriate
to protect the State's interest in the event of
bankruptcy, default, foreclosure, or noncompliance with
the terms and conditions of financial assistance or

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participation required under this Act, including the power
to sell, dispose of, lease, or rent, upon terms and
conditions determined by the Director to be appropriate,
real or personal property that the Department may recover
as a result of these actions.
Section 25-110. Certificate of eligibility for tax credit.
(a) An applicant that has hired a former energy worker or a
graduate of training programs as established under the Clean
Jobs Workforce and Contractor Equity Act as a new employee
during the incentive period may apply for a certificate of
eligibility for the credit with respect to that position on or
after the date of hire of the new employee. The date of hire
shall be the first day on which the employee begins providing
services for basic wage compensation.
(b) An applicant may apply for a certificate of
eligibility for the credit for more than one new employee on or
after the date of hire of each qualifying new employee.
(c) After receipt of an application under this Section,
the Department shall issue a certificate of eligibility to the
applicant that states the following:
(1) the date and time on which the application was
received by the Department and an identifying number
assigned to the applicant by the Department;
(2) the maximum amount of the credit the applicant
could potentially receive under this Act with respect to

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the new employees listed on the application; and
(3) the maximum amount of the credit potentially
allowable on certificates of eligibility issued for
applications received prior to the application for which
the certificate of eligibility is issued.
Section 25-115. Tax credit.
(a) Subject to the conditions set forth in this Act, an
applicant is entitled to a credit against payment of taxes
withheld under Section 704A of the Illinois Income Tax Act:
(1) for former energy workers or graduates of Clean
Jobs Workforce programs hired as new employees who the
applicant hires and retains for a minimum of one year; and
(2) in the amount of:
(A) 20% of the salary paid to the new employee for
employees hired and retained for between the time of
hiring and one year;
(B) 15% of the salary paid to the new employee for
employees hired and retained between one year and 2
years; and
(C) 10% of the salary paid to the new employee for
employees hired and retained between 2 years and 3
years.
(b) The Department shall make credit awards under this Act
to further job creation.
(c) The credit shall be claimed for the first calendar

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year ending on or after the date on which the certificate is
issued by the Department.
(d) The net increase in full-time Illinois employees,
measured on an annual full-time equivalent basis, shall be the
total number of full-time Illinois employees of the applicant
on the final day of the incentive period, minus the number of
full-time Illinois employees employed by the employer on the
first day of that same incentive period. For purposes of the
calculation, an employer that begins doing business in this
State during the incentive period, as determined by the
Director, shall be treated as having zero Illinois employees
on the first day of the incentive period.
(e) The net increase in the number of full-time Illinois
employees of the applicant under subsection (d) must be
sustained continuously for at least 12 months, starting with
the date of hire of a new employee during the incentive period.
Eligibility for the credit does not depend on the continuous
employment of any particular individual. For purposes of this
subsection (e), if a new employee ceases to be employed before
the completion of the 12-month period for any reason, the net
increase in the number of full-time Illinois employees shall
be treated as continuous if a different new employee is hired
as a replacement within a reasonable time for the same
position. The new employees must be hired to fill positions
that the applicant reasonably anticipates will be available
for the new employee as a long-term position. For the purposes

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of this subsection (e), "long-term position" means a position
that will be available for 3 years or longer.
(f) The Department shall adopt rules to enable an
applicant for which a Professional Employer Organization has
been contracted to issue W-2s and make payment of taxes
withheld under Section 704A of the Illinois Income Tax Act for
new employees to retain the benefit of tax credits to which the
applicant is otherwise entitled under this Act.
Section 25-120. Maximum amount of credits allowed. The
Department shall limit the monetary amount of credits awarded
under this Act to no more than $18,000,000 annually during the
incentive period. If applications for a greater amount are
received, credits shall be allowed on a first-come,
first-served basis, based on the date on which each properly
completed application for a certificate of eligibility is
received by the Department. If more than one certificate of
eligibility is received on the same day, the credits shall be
awarded based on the time of submission for that particular
day.
Section 25-125. Application for award of tax credit; tax
credit certificate.
(a) On or after the conclusion of the 12-month period, or
other period, after a new employee has been hired, for the
purposes of subsection (a) of Section 25-115, an applicant

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shall file with the Department an application for award of a
credit. The application shall include the following:
(1) the names, Social Security numbers, job
descriptions, salary or wage rates, and dates of hire of
the new employees with respect to whom the credit is being
requested;
(2) a certification that each new employee listed has
been retained on the job for at least one year from the
date of hire;
(3) the number of new employees hired by the applicant
during the incentive period;
(4) the net increase in the number of full-time
Illinois employees of the applicant, including the new
employees listed in the request, between the beginning of
the incentive period and the dates on which the new
employees listed in the request were hired;
(5) an agreement that the Director is authorized to
verify with the appropriate State agencies the information
contained in the request before issuing a certificate to
the applicant; and
(6) any other information the Department determines to
be appropriate.
(b) Although an application may be filed at any time after
the conclusion of the 12-month period after a new employee was
hired, an application filed more than 90 days after the
earliest date on which it could have been filed shall not be

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awarded any credit if, prior to the date it is filed, the
Department has received applications under this Section for
credits totaling more than $20,000,000.
(c) The Department shall issue a certificate to each
applicant awarded a credit under this Act. The certificate
shall include the following:
(1) the name and taxpayer identification number of the
applicant;
(2) the date on which the certificate is issued;
(3) the credit amount that will be allowed; and
(4) any other information the Department determines to
be appropriate.
Section 25-130. Submission of tax credit certificate to
the Department of Revenue. An applicant claiming a credit
under this Act shall submit to the Department of Revenue a copy
of each certificate issued under Section 25-125 with the first
tax return for which the credit shown on the certificate is
claimed. Failure to submit a copy of the certificate with the
applicant's tax return shall not invalidate a claim for a
credit.
Section 25-135. Administrative review.
(a) If the Director determines that an applicant who has
received a credit under this Act is not complying with the
requirements of this Act, the Director shall provide notice to

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the applicant of the alleged noncompliance, and allow the
taxpayer a hearing under the provisions of the Illinois
Administrative Procedure Act. If, after the notice and
hearing, the Director determines that noncompliance exists,
the Director shall issue to the Department of Revenue notice
to that effect, and state the date of noncompliance.
(b) All final administrative decisions, including, but not
limited to, funding allocation and rules issued by the
Department under this Act are subject to judicial review under
the Administrative Review Law. No action may be commenced
under this Section prior to 60 days after the complainant has
given notice in writing of the action to the Department.
Section 25-140. Rules. The Department may adopt rules
necessary to implement this Part 1. The rules may provide for
recipients of credits under this Part 1 to be charged fees to
cover administrative costs of the tax credit program.
Part 2.
Section 25-200. Definitions. As used in this Part 2:
"Agreement" means the agreement between a taxpayer and the
Department entered into for a tax credit awarded under Section
25-210.
"Applicant" means a taxpayer operating a renewable energy
enterprise, as determined under the Energy Community

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Reinvestment Act, located within or that the renewable energy
enterprise plans to locate within a Clean Energy Empowerment
Zone. "Applicant" does not include a taxpayer who closes or
substantially reduces an operation at one location in this
State and relocates substantially the same operation to a
location in a Clean Energy Empowerment Zone. A taxpayer is not
prohibited from expanding its operations at a location in a
Clean Energy Empowerment Zone, provided that existing
operations of a similar nature located within the State are
not closed or substantially reduced. A taxpayer is also not
prohibited from moving operations from one location in this
State to a Clean Energy Empowerment Zone for the purpose of
expanding the operation provided that the Department
determines that expansion cannot reasonably be accommodated
within the municipality in which the business is located, or
in the case of a business located in an incorporated area of
the county, within the county in which the business is
located, after conferring with the chief elected official of
the municipality or county and taking into consideration any
evidence offered by the municipality or county regarding the
ability to accommodate expansion within the municipality or
county.
"Board" means the Clean Energy Empowerment Zone Board
created under Section 20-20 of the Illinois Energy Community
Reinvestment Act.
"Credit" means the amount agreed to between the Department

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and the Applicant under this Act, but not to exceed the lesser
of: (1) the sum of (i) 50% of the incremental income tax
attributable to new employees at the applicant's project and
(ii) 10% of the training costs of new employees; or (2) 100% of
the incremental income tax attributable to new employees at
the applicant's project. If the project is located in an
underserved area, then the amount of the credit may not exceed
the lesser of: (1) the sum of (i) 75% of the incremental income
tax attributable to new employees at the applicant's project
and (ii) 10% of the training costs of new employees; or (2)
100% of the incremental income tax attributable to new
employees at the applicant's project. If an applicant agrees
to hire the required number of new employees, then the maximum
amount of the credit for that applicant may be increased by an
amount not to exceed 25% of the incremental income tax
attributable to retained employees at the applicant's project;
provided that, in order to receive the increase for retained
employees, the applicant must provide the additional evidence
required under paragraph (3) of subsection (c) of Section
25-215.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Full-time employee" means an individual who is employed
for consideration for at least 35 hours each week or who

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renders any other standard of service generally accepted by
industry custom or practice as full-time employment. An
individual for whom a W-2 is issued by a Professional Employer
Organization is a full-time employee if employed in the
service of the applicant for consideration for at least 35
hours each week or who renders any other standard of service
generally accepted by industry custom or practice as full-time
employment to the applicant.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of new employees
and, if applicable, retained employees under Article 7 of the
Illinois Income Tax Act arising from employment at a project
that is the subject of an agreement.
"New employee" means a full-time employee first employed
by a taxpayer in the project that is the subject of an
agreement and who is hired after the taxpayer enters into the
agreement.
"New employee" does not include:
(1) an employee of the taxpayer who performs a job
that was previously performed by another employee, if that
job existed for at least 6 months before hiring the
employee;
(2) an employee of the taxpayer who was previously
employed in Illinois by a related member of the taxpayer
and whose employment was shifted to the taxpayer after the
taxpayer entered into the agreement; or

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(3) a child, grandchild, parent, or spouse, other than
a spouse who is legally separated from the individual, of
any individual who has a direct or an indirect ownership
interest of at least 5% in the profits, capital, or value
of the taxpayer.
Notwithstanding any other provisions of this Section, an
employee may be considered a new employee under the agreement
if the employee performs a job that was previously performed
by an employee who was: (i) treated under the agreement as a
new employee; and (ii) promoted by the taxpayer to another
job.
Notwithstanding any other provisions of this Section, the
Department may award a credit to an applicant with respect to
an employee hired prior to the date of the agreement if: (i)
the applicant is in receipt of a letter from the Department
stating an intent to enter into a credit agreement; (ii) the
letter described in item (i) of this paragraph is issued by the
Department not later than 15 days after the effective date of
this Act; and (iii) the employee was hired after the date the
letter described in item (i) of this paragraph was issued.
"Pass-through entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
"Related member" means a person that, with respect to the
taxpayer during any portion of the taxable year, is any one of
the following:

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(1) An individual stockholder, if the stockholder and
the members of the stockholder's family, as defined in
Section 318 of the Internal Revenue Code, own directly,
indirectly, beneficially, or constructively, in the
aggregate, at least 50% of the value of the taxpayer's
outstanding stock.
(2) A partnership, estate, or trust and any partner or
beneficiary, if the partnership, estate, or trust, and its
partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or value of the
taxpayer.
(3) A corporation, and any party related to the
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the taxpayer
owns directly, indirectly, beneficially, or constructively
at least 50% of the value of the corporation's outstanding
stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own in the

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aggregate at least 50% of the profits, capital, stock, or
value of the taxpayer.
(5) A person to or from whom there is attribution of
stock ownership in accordance with subsection (e) of
Section 1563 of the Internal Revenue Code, except that for
purposes of determining whether a person is a related
member under this paragraph (5):
(A) stock owned, directly or indirectly, by or for
a partnership shall be considered as owned by any
partner having an interest of 20% or more in either the
capital or profits of the partnership in proportion to
his or her interest in capital or profits, whichever
such proportion is the greater;
(B) stock owned, directly or indirectly, by or for
an estate or trust shall be considered as owned by any
beneficiary who has an actuarial interest of 20% or
more in such stock, to the extent of such actuarial
interest. For purposes of this subparagraph, the
actuarial interest of each beneficiary shall be
determined by assuming the maximum exercise of
discretion by the fiduciary in favor of such
beneficiary and the maximum use of such stock to
satisfy his or her rights as a beneficiary; and
(C) stock owned, directly or indirectly, by or for
a corporation shall be considered as owned by any
person who owns 20% or more in value of its stock in

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that proportion which the value of the stock which the
person so owns bears to the value of all the stock in
the corporation.
"Renewable energy" means solar energy, wind energy, water
energy, geothermal energy, bioenergy, or hydrogen fuel and
cells.
"Renewable energy production facility" means a facility
owned by a company that is engaged in and used such a facility
for the production of solar energy, wind energy, water energy,
geothermal energy, bioenergy, or hydrogen fuel and cells.
"Taxpayer" means an individual, corporation, partnership,
or other entity that has any Illinois income tax liability.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest federal decennial census;
(2) 75% or more of the children in the area
participate in the federal free lunch program according to
reported statistics from the State Board of Education;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program; or
(4) the area has an average unemployment rate, as
determined by the Department of Employment Security, that
is more than 120% of the national unemployment average, as
determined by the United States Department of Labor, for a

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period of at least 2 consecutive calendar years preceding
the date of the application.
Section 25-205. Powers of the Department. The Department,
in addition to those powers granted under the Civil
Administrative Code of Illinois and Part 1 of this Act, is
granted and has all the powers necessary or convenient to
carry out and effectuate the purposes and provisions of this
Act, including, but not limited to, power and authority to:
(a) Adopt rules deemed necessary and appropriate for the
administration of programs; establish forms for applications,
notifications, contracts, or any other agreements; and accept
applications at any time during the year.
(b) Provide and assist taxpayers pursuant to the
provisions of this Act, and cooperate with taxpayers that are
parties to agreements to promote, foster, and support economic
development, capital investment, and job creation or retention
within the Clean Energy Empowerment Zone.
(c) Enter into agreements and memoranda of understanding
for participation of and engage in cooperation with agencies
of the federal government, units of local government,
universities, research foundations or institutions, regional
economic development corporations, or other organizations for
the purposes of this Act.
(d) Gather information and conduct inquiries, in the
manner and by the methods as it deems desirable, including,

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without limitation, gathering information with respect to
applicants for the purpose of making any designations or
certifications necessary or desirable or to gather information
to assist the Board with any recommendation or guidance in the
furtherance of the purposes of this Act.
(e) Establish, negotiate and effectuate any term,
agreement or other document with any person, necessary or
appropriate to accomplish the purposes of this Act, and
consent, subject to the provisions of any agreement with
another party, to the modification or restructuring of any
agreement to which the Department is a party.
(f) Fix, determine, charge, and collect any premiums,
fees, charges, costs, and expenses from applicants, including,
without limitation, any application fees, commitment fees,
program fees, financing charges, or publication fees as deemed
appropriate to pay expenses necessary or incident to the
administration, staffing, or operation in connection with the
Department's or Board's activities under this Act, or for
preparation, implementation, and enforcement of the terms of
the agreement, or for consultation, advisory and legal fees,
and other costs. All fees and expenses incident thereto shall
be the responsibility of the applicant.
(g) Provide for sufficient personnel to permit
administration, staffing, operation, and related support
required to adequately discharge its duties and
responsibilities described in this Act from funds made

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available through charges to applicants or from funds as may
be appropriated by the General Assembly for the administration
of this Act.
(h) Require applicants, upon written request, to issue any
necessary authorization to the appropriate federal, State, or
local authority for the release of information concerning a
project being considered under the provisions of this Act,
with the information requested to include, but not be limited
to, financial reports, returns, or records relating to the
taxpayer or its project.
(i) Require that a taxpayer shall at all times keep proper
books of record and account in accordance with generally
accepted accounting principles consistently applied, with the
books, records, or papers related to the agreement in the
custody or control of the taxpayer open for reasonable
Department inspection and audits, and including, without
limitation, the making of copies of the books, records, or
papers, and the inspection or appraisal of any of the taxpayer
or project assets.
(j) Take whatever actions are necessary or appropriate to
protect the State's interest in the event of bankruptcy,
default, foreclosure, or noncompliance with the terms and
conditions of financial assistance or participation required
under this Act, including the power to sell, dispose, lease,
or rent, upon terms and conditions determined by the Director
to be appropriate, real or personal property that the

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Department may receive as a result of these actions.
Section 25-210. Tax credit awards.
(a) Subject to the conditions set forth in this Act, a
taxpayer is entitled to a credit against or, as described in
subsection (g), a payment toward taxes imposed pursuant to
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act that may be imposed on the taxpayer for a taxable year
beginning on or after January 1, 2019, if the taxpayer is
awarded a credit by the Department under this Act for that
taxable year.
(b) The Department shall make credit awards under this Act
to foster job creation and the development of renewable energy
in Clean Energy Empowerment Zones.
(c) A person that proposes a project to create new jobs and
to invest in the development of a renewable energy production
facility in a Clean Energy Empowerment Zone must enter into an
agreement with the Department for the credit under this Act.
(d) The credit shall be claimed for the taxable years
specified in the agreement.
(e) The credit shall not exceed the incremental income tax
attributable to the project that is the subject of the
agreement.
(f) Nothing herein shall prohibit a tax credit award to an
applicant that uses a Professional Employer Organization if
all other award criteria are satisfied.

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(g) A pass-through entity that has been awarded a credit
under this Act, its shareholders, or its partners may treat
some or all of the credit awarded under this Act as a tax
payment for purposes of the Illinois Income Tax Act. In no
event shall the amount of the award credited under this Act
exceed the Illinois income tax liability of the pass-through
entity or its shareholders or partners for the taxable year.
For the purposes of this subsection (g), "tax payment"
means a payment as described in Article 6 or Article 8 of the
Illinois Income Tax Act or a composite payment made by a
pass-through entity on behalf of any of its shareholders or
partners to satisfy such shareholders' or partners' taxes
imposed pursuant to subsections (a) and (b) of Section 201 of
the Illinois Income Tax Act.
Section 25-215. Application for a project to create and
retain new jobs and to develop renewable energy.
(a) Any renewable energy enterprise proposing a project to
build a renewable energy production facility located or
planned to be located in a Clean Energy Empowerment Zone may
request consideration for designation of its project, by
formal written letter of request or by formal application to
the Department, in which the applicant states its intent to
make at least a specified level of investment and intends to
hire or retain a specified number of full-time employees at a
designated location in Illinois. As circumstances require, the

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Department may require a formal application from an applicant
and a formal letter of request for assistance.
(b) In order to qualify for credits under this Act, an
applicant's project must:
(1) be for the purpose of producing renewable energy;
(2) if the applicant has more than 100 employees,
involve an investment of at least $2,500,000 in capital
improvements to be placed in service within a Clean Energy
Empowerment Zone as a direct result of the project. If the
applicant has 100 or fewer employees, then there is no
capital investment requirement; and
(3) if the applicant has more than 100 employees,
employ a number of new employees in the Clean Energy
Empowerment Zone equal to the lesser of (A) 10% of the
number of full-time employees employed by the applicant
world-wide on the date the application is filed with the
Department; or (B) 50 new employees. If the applicant has
100 or fewer employees, employ a number of new employees
in the State equal to the lesser of (A) 5% of the number of
full-time employees employed by the applicant world-wide
on the date the application is filed with the Department
or (B) 50 New Employees.
(c) After receipt of an application, the Department shall
review the application, make inquiries, and conduct studies in
the manner and by the methods as it deems desirable, and
consult with and make a recommendation to the Clean Energy

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Empowerment Zone Board created under the Energy Community
Reinvestment Act. The Department and the Board shall make its
recommendations and approvals based on whether they determine
that all of the following conditions exist:
(1) The applicant's project will make the required
investment in the State and the applicant intends to hire
the required number of new employees in Illinois as a
result of that project, as described in this Act.
(2) The applicant's project is economically sound and
will benefit the people of the State of Illinois by
increasing opportunities for employment and strengthening
the economy of Illinois.
(3) That, if not for the credit, the project would not
occur in Illinois or in the Clean Energy Empowerment Zone,
which may be demonstrated by evidence that receipt of the
credit is essential to the applicant's decision to create
new jobs in the State, such as the magnitude of the cost
differential between Illinois and a competing state;
(4) The political subdivisions affected by the project
have committed local incentives or other support with
respect to the project, considering local ability to
assist.
(5) Awarding the credit will result in an overall
positive fiscal impact to the State, as certified by the
Board using the best available data.
(6) The credit is not prohibited by Section 25-225.

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(d) After approval by the Board, the Department may enter
into an agreement with the applicant.
Section 25-225. Relocation of jobs to Clean Energy
Empowerment Zone. A taxpayer is not entitled to claim the
credit provided by this Act with respect to any jobs that the
taxpayer relocates from one site in Illinois to another site
in a Clean Energy Empowerment Zone. A taxpayer with respect to
a qualifying project certified under the Corporate
Headquarters Relocation Act, however, is not subject to the
requirements of this Section, but is nevertheless considered
an applicant for purposes of this Act. Moreover, any full-time
employee of an eligible renewable energy enterprise relocated
to a Clean Energy Empowerment Zone in connection with that
qualifying project is deemed to be a new employee for purposes
of this Act. Determinations under this Section shall be made
by the Department.
Section 25-230. Determination of the amount of credit. In
determining the amount of credit that should be awarded, the
Board shall provide guidance on, and the Department shall take
into consideration, all of the following factors:
(1) the number and location of jobs created and
retained in relation to the economy of the Clean Energy
Empowerment Zone where the projected investment is to
occur;

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(2) the potential impact on the economy of the Clean
Energy Empowerment Zone;
(3) the advancement of renewable energy in the Clean
Energy Empowerment Zone;
(4) the incremental payroll attributable to the
project;
(5) the capital investment attributable to the
project;
(6) the amount of the average wage and benefits paid
by the applicant in relation to the wage and benefits of
the Clean Energy Empowerment Zone;
(7) the costs to Illinois and the affected political
subdivisions with respect to the project; and
(8) the financial assistance that is otherwise
provided by Illinois and the affected political
subdivisions.
Section 25-235. Amount and duration of credit.
(a) The Department shall determine the amount and duration
of the credit awarded under this Act. The duration of the
credit may not exceed 10 taxable years. The credit may be
stated as a percentage of the incremental income tax
attributable to the applicant's project and may include a
fixed dollar limitation. An agreement for the credit must be
finalized and signed by all parties while the area in which the
project is located is designated a Clean Energy Empowerment

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Zone. The credit may last longer than the applicable Clean
Energy Empowerment Zone designation. Agreements entered into
prior to the de-designation of a Clean Energy Empowerment Zone
shall be honored for the length of the agreement.
(b) Notwithstanding subsection (a), and except as the
credit may be applied in a carryover year as otherwise
provided in this subsection (b), the credit may be applied
against the State income tax liability in more than 10 taxable
years, but not in more than 15 taxable years for an eligible
green energy enterprise that: (i) qualifies under this Act and
the Corporate Headquarters Relocation Act and has in fact
undertaken a qualifying project within the time frame
specified by the Department of Commerce and Economic
Opportunity under that Act; and (ii) applies against its State
income tax liability, during the entire 15-year period, no
more than 60% of the maximum credit per year that would
otherwise be available under this Act.
Any credit that is unused in the year the credit is
computed may be carried forward and applied to the tax
liability of the 5 taxable years following the excess credit
year. The credit shall be applied to the earliest year for
which there is a tax liability. If there are credits from more
than one tax year that are available to offset a liability, the
earlier credit shall be applied first.
Section 25-240. Contents of agreements with applicants.

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The Department shall enter into an agreement with an applicant
that is awarded a credit under this Act.
Section 25-245. Certificate of verification; submission to
the Department of Revenue. A taxpayer claiming a credit under
this Act shall submit to the Department of Revenue a copy of
the Director's certificate of verification under this Act for
the taxable year. Failure to submit a copy of the certificate
with the taxpayer's tax return shall not invalidate a claim
for a credit.
Section 25-250. Supplier diversity. Each taxpayer claiming
a credit under this Act shall, no later than April 15 of each
taxable year for which the taxpayer claims a credit under this
Act, submit to the Department of Commerce and Economic
Opportunity an annual report containing the information
described in subsections (b), (c), (d), and (e) of Section
5-117 of the Public Utilities Act. Those reports shall be
submitted in the form and manner required by the Department of
Commerce and Economic Opportunity.
Section 25-255. Pass-through entity. The shareholders or
partners of a taxpayer that is a pass-through entity shall be
entitled to the credit allowed under the agreement. The credit
is in addition to any credit to which a shareholder or partner
is otherwise entitled under a separate agreement under this

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Act. A pass-through entity and a shareholder or partner of the
pass-through entity may not claim more than one credit under
the same agreement.
Section 25-260. Rules. The Department may adopt rules
necessary to implement this Part 2. The rules may provide for
recipients of credits under this Part 2 to be charged fees to
cover administrative costs of the tax credit program. Fees
collected shall be deposited into the Energy Community
Reinvestment Fund.
Section 25-265. Program terms and conditions.
(a) Any documentary materials or data made available or
received by any member of a board or any agent or employee of
the Department shall be deemed confidential and shall not be
deemed public records to the extent that the materials or data
consists of trade secrets, commercial or financial information
regarding the operation of the business conducted by the
applicant for or recipient of any tax credit under this Act, or
any information regarding the competitive position of a
business in a particular field of endeavor.
(b) Nothing in this Act shall be construed as creating any
rights in any applicant to enter into an agreement or in any
person to challenge the terms of any agreement.
Article 30. Coal Severance Fee Act

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Section 30-1. Short title. This Article may be cited as
the Coal Severance Fee Act. References in this Article to
"this Act" mean this Article.
Section 30-5. Coal severance fee.
(a) Definitions. As used in this Act:
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian, or other representative appointed
by order of any court.
(b) Tax imposed.
(1) On and after June 1, 2021, there is hereby imposed
a tax upon any person engaged in the business of severing
or preparing coal for sale, profit, or commercial use, if
the coal is severed from a mine located in this State. The
rate of the tax imposed under this Section is 6% of the
gross value of the severed coal.
(2) The liability for the tax accrues at the time the
coal is severed.
(c) Payment and collection of tax.
(1) The tax imposed under this Act shall be due and
payable on or before the 20th day of the month following
the month in which the coal is severed.

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(2) The State shall have a lien on all coal severed in
this State on or after June 1, 2021 to secure the payment
of the tax.
(d) Registration. A person who is subject to the tax
imposed under this Act shall register with the Department.
Application for a certificate of registration shall be made to
the Department upon forms furnished by the Department and
shall contain any reasonable information the Department may
require. Upon receipt of the application for a certificate of
registration in proper form, the Department shall issue to the
applicant a certificate of registration.
(e) Inspection of records by Department, subpoena power,
contempt. For the purpose of computing the amount of the tax
due under this Section, the Department has the following
powers:
(1) to require any person who is subject to this tax to
furnish any additional information deemed to be necessary
for the computation of the tax;
(2) to examine books, records, and files of such
person; and
(3) to issue subpoenas and examine witnesses under
oath. If any witness fails or refuses to appear at the
request of the Director, or if any witness refuses access
to books, records, or files, the circuit court of the
proper county, or the judge thereof, on application of the
Department, shall compel obedience by proceedings for

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contempt, as in the case of disobedience of the
requirements of a subpoena issued from that court or a
refusal to testify therein.
(f) Returns. Each taxpayer shall make a return to the
Department showing the following:
(1) the name of the taxpayer;
(2) the address of the taxpayer's principal place of
business;
(3) the quantity of coal severed or prepared during
the month for which the return is filed;
(4) the gross value of the severed coal;
(5) the amount of tax due;
(6) the signature of the taxpayer; and
(7) any other reasonable information as the Department
may require.
(g) The return shall be filed on or before the 20th day of
the month after the month during which the coal is severed. The
Department may require any additional report or information it
deems necessary for the proper administration of this Act.
(h) Returns due under this Section shall be filed
electronically in the manner prescribed by the Department.
Taxpayers shall make all payments of the tax to the Department
under this Act by electronic funds transfer unless, as
provided by rule, the Department grants an exception upon
petition of a taxpayer. Returns must be accompanied by
appropriate computer generated magnetic media supporting

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schedule data in the format required by the Department,
unless, as provided by rule, the Department grants an
exception upon petition of a taxpayer.
(i) Incorporation by reference. All of the provisions of
Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6, 13 6a, 6b,
6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
Occupation Tax Act which are not inconsistent with this Act,
and all provisions of the Uniform Penalty and Interest Act
shall apply, as far as practicable, to the subject matter of
this Act to the same extent as if such provisions were included
herein.
(j) Rulemaking. The Department is hereby authorized to
adopt rules as may be necessary to administer and enforce the
provisions of this Act.
(k) Distribution of proceeds. All moneys received by the
Department under this Act shall be paid into the Energy
Community Reinvestment Fund.
Article 35. Building Energy Performance Standard Act
Section 35-1. Short title. This Article may be cited as
the Building Energy Performance Standard Act. References in
this Article to "this Act" mean this Article.
Section 35-5. Building Energy Performance Standard.
(a) The purpose of the Illinois Building Energy

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Performance Standard is to decrease energy consumption, reduce
greenhouse gas emissions from existing buildings, and increase
economic growth and job creation by:
(1) creating a Building Energy Performance Standard
through a stakeholder engagement process;
(2) implementing the Building Energy Performance
Standard for all state-owned buildings; and
(3) creating a uniform Building Energy Performance
Standard that may be adopted by local jurisdictions and
may be applicable to publicly owned buildings or privately
owned buildings, or both.
(b) Within 90 days after the effective date of this Act,
the Illinois Office of Energy shall establish a Building
Energy Performance Standard Task Force to advise and provide
technical assistance and recommendations for the Illinois
Building Energy Performance Standard, which shall:
(A) advise the Illinois Office of Energy on creation
of an implementation plan for the Building Energy
Performance Standard;
(B) recommend amendments to proposed regulations
issued by the Illinois Office of Energy;
(C) recommend complementary programs or policies; and
(D) complete its tasks within one year of enactment.
The Task Force shall be composed of representatives,
or their designees, from the following entities:
(i) the Director of the Illinois Environmental

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Protection Agency;
(ii) the Director of the Capital Development Board;
(iii) The Director of Central Management Services;
(iv) a minimum of one technical expert with extensive
knowledge of energy use in multiple existing commercial
building use types;
(v) a representative from the City of Chicago;
(vi) the Director of the Illinois Housing Development
Authority;
(vii) the Director of Commerce and Economic
Opportunity;
(viii) a representative from an environmental or
sustainability nonprofit organization;
(ix) a representative from each of the investor-owned
utilities in Illinois;
(x) a representative who is an affordable housing
advocate;
(xi) a representative from a market-rate multifamily
building;
(xii) a representative from a building owners and
managers association;
(xiii) a representative from a public university
system;
(xiv) a representative of a nonprofit or professional
association advocating for energy efficient buildings or a
low-carbon built environment;

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(xvi) a representative of a business or entity that
provides energy efficiency or renewable energy services to
large buildings or affordable housing in the State; and
(xvii) other experts or organizations deemed necessary
by the Illinois Office of Energy.
(c) In establishing specific performance standards and
processes, the Illinois Office of Energy shall:
(1) require all buildings owned by the State of
Illinois to comply with the Building Energy Performance
Standard. State-owned buildings shall meet the following
timeline for compliance with Building Energy Performance
Standard:
(A) buildings over 50,000 gross square feet shall
comply no later than January 1, 2024;
(B) buildings over 25,000 gross square feet shall
comply no later than January 1, 2026;
(C) buildings over 10,000 gross square feet shall
comply no later than January 1, 2028; and
(D) buildings below 10,000 gross square feet are
not required to comply.
(2) require the property type energy use targets
established by the Illinois Building Energy Performance
Standard to be the minimum energy efficiency requirements
for any jurisdiction adopting a building energy
performance standard;
(3) with input from the Building Energy Performance

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Standard Task Force, establish property types and building
energy performance standards for each property type, or an
equivalent metric for buildings that do not receive an
ENERGY STAR score, no later than January 1, 2023;
beginning every 5 years after January 1, 2023, the
Illinois Office of Energy shall review and assess the need
to update the energy performance standards for each
property type;
(4) establish reporting and data verification
requirements for buildings covered by Building Energy
Performance Standard, and establish requirements for
making reporting and data publicly available;
(5) establish that the Building Energy Performance
Standard for buildings that are eligible for an ENERGY
STAR score is no lower than the State median ENERGY STAR
score for buildings of each property type;
(6) establish penalty guidelines for buildings failing
to comply with the building energy performance
requirements; and
(7) if needed, establish exemption criteria, in
consultation with the Building Energy Performance Standard
Task Force, including:
(A) for qualifying affordable housing buildings to
delay compliance with the building energy performance
requirements for no more than 3 years if the owner
demonstrates, to the satisfaction of the Illinois

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Office of Energy, financial distress, change of
ownership, vacancy, major renovation, pending
demolition, or other acceptable circumstances as
determined by the State of Illinois; and
(B) for qualifying buildings to delay compliance
with the building energy performance requirements for
up to 3 years if the owner demonstrates, to the
satisfaction of the State of Illinois, financial
distress, change of ownership, vacancy, major
renovation, pending demolition, or other acceptable
circumstances determined by the State of Illinois.
(d) In establishing specific performance standards, the
Illinois Office of Energy may consider:
(1) the existence of any historic buildings and any
restrictions related to the treatment of historic
buildings;
(2) the diversity of building uses and requirements;
and
(3) the impact on zoning regulations.
(e) The Illinois Office of Energy shall, no later than
January 1, 2023, create, and make publicly available, a
strategic implementation plan for State-owned buildings
complying with the Illinois Building Energy Performance
Standard.
(f) The Illinois Office of Energy shall post the strategic
implementation plan on its website.

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Article 40. Public Utilities Intervenor Compensation Act
Section 40-1. Short title. This Article may be cited as
the Public Utilities Intervenor Compensation Act. References
in this Article to "this Act" mean this Article.
Section 40-5. Findings. The General Assembly finds that:
(1) public participation is an important consideration
in Illinois Commerce Commission proceedings;
(2) public stakeholders face financial challenges in
participating at Illinois Commerce Commission proceedings,
including retaining legal representation and expert
witnesses;
(3) it is in the public interest to reduce barriers to
participation in Illinois Commerce Commission proceedings,
particularly for environmental justice and other public
interest organizations;
(4) provision of compensation for participating
organizations will improve Illinois Commerce Commission
proceedings and decisions, increase public engagement, and
encourage additional transparency.
Section 40-10. Definitions. As used in this Act:
"Commission" means the Illinois Commerce Commission.
"Compensation" means payment for all or part, as

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determined by the Commission, of reasonable advocate's fees,
reasonable expert witness fees, and other reasonable costs of
preparation for and participation in a proceeding, and
includes the fees and costs of obtaining an award under this
article and of obtaining judicial review, if any.
"Contribution" means that the customer's presentation has
met the following standard:
(1) For any customer, the presentation has assisted
the Commission in the making of its order or decision
because the order or decision has adopted in whole or in
part one or more factual contentions, legal contentions,
or specific policy or procedural recommendations presented
by the customer. For any customer, where the customer's
participation has resulted in a contribution, even if the
decision adopts that customer's contention or
recommendations only in part, the Commission may award the
customer compensation for all reasonable advocate's fees,
reasonable expert fees, and other reasonable costs
incurred by the customer in preparing or presenting that
contention or recommendation. Participation by any
customer that materially supplements, complements, or
contributes to the presentation of another party,
including the Commission staff, that makes a contribution
to a Commission order or decision is fully eligible for
compensation.
(2) For customers with fewer than 3 attorneys on

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staff, the customer introduces a relevant argument or
factual evidence into the docket, garners a response from
another party to the proceeding, and files briefs.
(3) For customers without attorneys on staff, the
customer introduces a relevant argument or factual
evidence into the docket.
"Customer" means any of the following:
(1) A participant representing consumers, customers,
or subscribers of any electrical, gas, telephone, or water
corporation that is subject to the jurisdiction of the
Commission.
(2) A representative who has been authorized by a
customer.
(3) A representative of a group or organization
authorized pursuant to its articles of incorporation or
bylaws to represent the interests of residential
customers, or to represent small commercial customers who
receive bundled electric service from an electrical
corporation.
(4) an organization representing environmental justice
communities.
"Customer" does not include any state, federal, or local
governmental agency, or any publicly owned public utility.
"Customer" must be a nonprofit organization.
"Environmental justice communities" means the definition
of that term based on existing methodologies and findings,

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used and as may be updated by the Illinois Power Agency and its
program administrator in the Illinois Solar for All Program.
"Expert witness fees" means recorded or billed costs
incurred by a customer for an expert witness.
"Other reasonable costs" means reasonable out-of-pocket
expenses directly incurred by a customer that are directly
related to the contentions or recommendations made by the
customer that resulted in a contribution.
"Party" means any interested party, respondent public
utility, or Commission staff in a hearing or proceeding.
"Public utility" has the meaning ascribed to it in the
Public Utilities Act.
"Significant financial hardship" means either that the
customer cannot afford, without undue hardship, to pay the
costs of effective participation, including advocate's fees,
expert witness fees, and other reasonable costs of
participation, or that, in the case of a group or
organization, the economic interest of the individual members
of the group or organization is small in comparison to the
costs of effective participation in the proceeding.
Section 40-15. Intervenor compensation awards. The
Commission shall award reasonable advocate's fees, reasonable
expert witness fees, and other reasonable costs of preparation
for and participation in a hearing or proceeding to any
customer that complies with the procedures in Section 40-20

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and satisfies both of the following requirements:
(1) The customer's presentation makes a contribution
to the adoption, in whole or in part, of the Commission's
order or decision, as described in Section 40-10(b); and
(2) Participation or intervention without an award of
fees or costs imposes a significant financial hardship.
Section 40-20. Intervenor compensation award procedures.
(a)(1) A customer that intends to seek an award under this
article shall, within 30 days after the prehearing conference
is held, file and serve on all parties to the proceeding a
notice of intent to claim compensation. The Commission shall
determine the procedure to be used in cases in which:
(i) no prehearing conference is scheduled;
(ii) the Commission anticipates that the proceeding
will take less than 30 days;
(iii) the schedule would not reasonably allow parties
to identify issues within the time frame set forth in this
subsection; or
(iv) where new issues emerge after the time set for
filing.
(2)(i) The notice of intent to claim compensation shall
include both of the following:
(A) A statement of the nature and extent of the
customer's planned participation in the proceeding as far
as it is possible to set it out when the notice of intent

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is filed.
(B) An itemized estimate of the compensation that the
customer expects to request, given the likely duration of
the proceeding as it appears at the time.
(ii) The notice of intent may also include a showing by the
customer that participation in the hearing or proceeding would
pose a significant financial hardship. Alternatively, such a
showing shall be included in the request submitted pursuant to
subsection (c).
(3) Within 15 days after service of the notice of intent to
claim compensation, the administrative law judge may direct
the staff, and may permit any other interested party, to file a
statement responding to the notice.
(b)(1) If the customer's showing of significant financial
hardship was included in the notice filed pursuant to
subsection (a), the administrative law judge shall issue
within 30 days thereafter a preliminary ruling addressing
whether the customer is eligible for an award of compensation.
The ruling shall address whether a showing of significant
financial hardship has been made. A finding of significant
financial hardship shall create a rebuttable presumption of
eligibility for compensation in other Commission proceedings
commencing within 2 years after the date of that finding.
(2) The administrative law judge may, in any event, issue
a ruling addressing issues raised by the notice of intent to
claim compensation. The ruling may point out similar

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positions, areas of potential duplication in showings,
unrealistic expectation for compensation, and any other matter
that may affect the customer's ultimate claim for
compensation. Failure of the ruling to point out similar
positions or potential duplication or any other potential
impact on the ultimate claim for compensation shall not imply
approval of any claim for compensation. A finding of
significant financial hardship in no way ensures compensation.
Similarly, the failure of the customer to identify a specific
issue in the notice of intent or to precisely estimate
potential compensation shall not preclude an award of
reasonable compensation if a contribution is made.
(c) Following issuance of a final order or decision by the
Commission in the hearing or proceeding, a customer that has
been found, pursuant to subsection (b), to be eligible for an
award of compensation may file within 60 days a request for an
award. The request shall include at a minimum a detailed
description of services and expenditures and a description of
the customer's contribution to the hearing or proceeding.
Within 30 days after service of the request, the Commission
staff may file, and any other party may file, a response to the
request.
(d) The Commission may audit the records and books of the
customer to the extent necessary to verify the basis for the
award. The Commission shall preserve the confidentiality of
the customer's records in making its audit. Within 20 days

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after completion of the audit, if any, the Commission shall
direct that an audit report shall be prepared and filed. Any
other party may file a response to the audit report within 20
days thereafter.
(e) Within 75 days after the filing of a request for
compensation pursuant to subsection (c), or within 50 days
after the filing of an audit report, whichever occurs later,
the Commission shall issue a decision that determines whether
or not the customer has made a contribution to the final order
or decision in the hearing or proceeding. If the Commission
finds that the customer requesting compensation has made a
contribution, the Commission shall describe this contribution
and shall determine the amount of compensation to be paid.
Section 40-25. Calculation of intervenor compensation
awards. The computation of compensation awarded shall take
into consideration the market rates paid to persons of
comparable training and experience who offer similar services.
The compensation awarded may not exceed the comparable market
rate for services paid by the Commission or the public
utility, whichever is greater, to persons of comparable
training and experience who are offering similar services.
Section 40-30. Intervenor compensation payments and cost
recovery. An award made under this Act shall be paid by the
public utility that is the subject of the hearing,

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investigation, or proceeding, as determined by the Commission,
within 30 days. Notwithstanding any other law, an award paid
by a public utility pursuant to this Act shall be allowed by
the Commission as an expense for the purpose of establishing
rates of the public utility.
Section 40-35. Denial of intervenor compensation payments.
The Commission shall deny any award to any customer that
attempts to delay or obstruct the orderly and timely
fulfillment of the Commission's responsibilities.
Section 40-40. Illinois Commerce Commission Intervenor
Compensation Fund. The Illinois Commerce Commission Intervenor
Compensation Fund is hereby created as a special fund in the
State treasury. The Commission shall administer the Illinois
Commerce Commission Intervenor Compensation Fund for use as
described in Section 40-45. An electric public utility with
3,000,000 or more retail customers shall contribute $450,000
to the Illinois Commerce Commission Intervenor Compensation
Fund within 60 days after the effective date of this Act. A
combined electric and gas public utility serving fewer than
3,000,000 but more than 500,000 retail customers shall
contribute $225,000 to the Illinois Commerce Commission
Intervenor Compensation Fund within 60 days after the
effective date of this Act. A gas public utility with
2,000,000 or more retail customers that is not a combined

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electric and gas public utility shall contribute $225,000 to
the Illinois Commerce Commission Intervenor Compensation Fund
within 60 days after the effective date of this Act. A gas
public utility with fewer than 2,000,000 retail customers but
more than 300,000 retail customers that is not a combined
electric and gas public utility shall contribute $80,000 to
the Illinois Commerce Commission Intervenor Compensation Fund
within 60 days after the effective date of this Act. A gas
public utility with fewer than 300,000 retail customers that
is not a combined electric and gas public utility shall
contribute $20,000 to the Illinois Commerce Commission
Intervenor Compensation Fund within 60 days after the
effective date of this Act.
Section 40-45. Intervenor compensation pre-proceeding
grants.
(a) Any customer that applies for intervenor compensation
payments under subsection (a) of Section 40-20 may also, at
the same time, apply for a grant from the Illinois Commerce
Commission Intervenor Compensation Fund for the costs
described in its notice of intent to claim compensation. A
final decision regarding the grant shall be made at the time of
the preliminary ruling on intervenor compensation eligibility
in subsection (b) of Section 40-20. No pre-proceeding grant
shall be given to organizations who are not found to be
eligible for intervenor compensation. If granted, payments

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must be made within 30 days to facilitate participation in the
proceeding. At the time of the final decision regarding the
grant, the Commission shall notify the customer of the
requirements to be awarded intervenor compensation and that,
if the customer does not prevail in receiving intervenor
compensation of at least the amount of the grant, the customer
will be expected to reimburse the Illinois Commerce Commission
Intervenor Compensation Fund for the remaining grant moneys on
a regular schedule within 5 years of the end of the proceeding.
After notification, the customer may accept or deny receipt of
the grant.
(b) To apply for a grant from the Illinois Commerce
Commission Intervenor Compensation Fund, the customer must
describe why prepayment of intervenor compensation is
necessary for it to participate in the proceeding and show
financial hardship sufficient that the customer cannot
reasonably be expected to participate without receiving a
grant.
(c) If a customer that receives a grant from the Illinois
Commerce Commission Intervenor Compensation Fund subsequently
prevails in receiving intervenor compensation, the public
utility paying intervenor compensation must reimburse the fund
for the amount of the grant. If the intervenor compensation
amount is larger than the grant, then the balance shall be paid
to the customer. If the amount of intervenor compensation is
less than the grant, then the customer must reimburse the

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Illinois Commerce Commission Intervenor Compensation Fund for
the difference with payments made on a regular schedule within
5 years after the end of the proceeding.
(d) If a customer that receives a grant from the Illinois
Commerce Commission Intervenor Compensation Fund does not
subsequently prevail in receiving intervenor compensation,
then the customer must reimburse the Illinois Commerce
Commission Intervenor Compensation Fund for the amount of the
grant with payments made on a regular schedule within 5 years
of the end of the proceeding.
Section 40-50. Rulemaking. The Commission shall adopt any
rules necessary to implement this Act. The Commission has the
authority to initiate an emergency rulemaking to adopt rules
regarding intervenor compensation if necessary to allow
customer participation in dockets implementing new statutes.
Article 45. Electric Vehicle Charging Act
Section 45-1. Short title. This Article may be cited the
Electric Vehicle Charging Act. References in this Article to
"this Act" mean this Article.
Section 45-5. Legislative intent. Electric vehicles are an
important tool to fight the climate crisis, tackle air
pollution, and provide safe, clean, and affordable personal

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transportation. The State should encourage urgent and
widespread adoption of electric vehicles. Since most current
electric vehicle owners are single-family homeowners who
charge at home, providing access to home charging for those in
multi-unit dwellings is crucial to wider electric vehicle
adoption. This includes condominium unit owners and renters,
regardless of parking space ownership and regardless of
income. Therefore, a significant portion of parking spaces in
new and renovated residential and commercial developments must
be capable of electric vehicle charging. Additionally, renters
and condominium unit owners must be able to install charging
equipment for their cars under reasonable conditions.
Section 45-10. Applicability. This Act applies to new or
renovated residential or nonresidential buildings that have
parking spaces and are constructed or renovated after the
effective date of this Act.
Section 45-15. Definitions. As used in this Act:
"Association" has the meaning set forth in subsection (o)
of Section 2 of the Condominium Property Act or Section 1-5 of
the Common Interest Community Association Act, as applicable.
"Electric vehicle" means a vehicle that is powered by an
electric motor, runs on a rechargeable battery, and must be
plugged in to charge or charged wirelessly.
"Electric vehicle capable" means having an installed

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electrical panel capacity with a dedicated branch circuit and
a continuous raceway from the panel to the future electric
vehicle parking space.
"Electric vehicle station" means a station that is
designed in compliance with the relevant building code and
delivers electricity from a source outside an electric vehicle
into one or more electric vehicles.
"Electric vehicle system" includes several charging points
simultaneously connecting several electric vehicles to the
electric vehicle charging station and any related equipment
needed to facilitate charging an electric vehicle. "Electric
vehicle charging system" means a device that is:
(1) used to provide electricity to an electric
vehicle;
(2) designed to ensure that a safe connection has been
made between the electric grid and the electric vehicle;
and
(3) able to communicate with the vehicle's control
system so that electricity flows at an appropriate voltage
and current level. An electric vehicle charging system may
be wall mounted or pedestal style, may provide multiple
cords to connect with electric vehicles, and shall:
(i) be certified by underwriters laboratories or
have been granted an equivalent certification; and
(ii) comply with the current version of Article
625 of the National Electrical Code.

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"Electric vehicle supply equipment" means a conductor,
including an ungrounded, grounded, and equipment grounding
conductor, and electric vehicle connectors, attachment plugs,
and all other fittings, devices, power outlets, and
apparatuses installed specifically for the purpose of
transferring energy between the premises wirings and the
electric vehicle.
"Electric vehicle ready" means a parking space that is
designed and constructed to include a fully-wired circuit with
a 208-volt to 250-volt, rated no more than 50-ampere electric
vehicle charging receptacle outlet or termination point,
including the conduit, wiring, and electrical service capacity
necessary to serve that receptacle, to allow for future
electric vehicle supply equipment.
"Level 1" means a charging system that provides charging
through a 120-volt AC plug with a cord connector that meets the
SAE International J2954 standard or successor standard.
"Level 2" means a charging system that provides charging
through a 208-volt to 240-volt AC plug with a cord connector
that meets the SAE International J2954 standard or a successor
standard.
"New" means any newly constructed building and associated
newly constructed parking facility.
"Reasonable restriction" means a restriction that does not
significantly increase the cost of the electric vehicle
charging station or electric vehicle charging system or

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significantly decrease its efficiency or specified
performance.
"Renovated" means altered or added where electrical
service capacity is increased.
Section 45-20. Residential requirements. A new or
renovated residential building shall have:
(1) 100% of its total parking spaces electric vehicle
ready, if there are one to 6 parking spaces;
(2) 100% of its total parking spaces electric vehicle
capable, of which at least 20% shall be electric vehicle
ready, if there are 6 to 23 parking spaces; or
(3) 100% of its total parking spaces electric vehicle
capable, if there are 24 or more parking spaces, of which
at least 5 spots shall be EV Ready. Additionally, if there
are 24 or more parking spaces, a new or renovated
residential building shall provide at least one parking
space with electric vehicle supply equipment installed,
and for each additional parking space with electric
vehicle supply equipment installed, the electric vehicle
ready requirement is decreased by 2%.
Where additional parking exists or is feasible, each
parking space shall be marked and signed for common use by
residents. A resident shall use an electric vehicle parking
space only when he or she is charging his or her electric
vehicle.

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Section 45-25. Nonresidential requirements. A new or
renovated nonresidential building shall have 20% of its total
parking spaces electric vehicle ready.
Section 45-30. Electric vehicle charging station policy
for unit owners.
(a) Any covenant, restriction, or condition contained in
any deed, contract, security interest, or other instrument
affecting the transfer or sale of any interest in a
condominium or common interest community, and any provision of
a governing document that effectively prohibits or
unreasonably restricts the installation or use of an electric
vehicle charging station within a unit owner's unit or a
designated parking space, including, but not limited to, a
deeded parking space, a parking space in a unit owner's
exclusive use common area, or a parking space that is
specifically designated for use by a particular unit owner, or
is in conflict with this Section, is void and unenforceable.
(b) This Section does not apply to provisions that impose
a reasonable restriction on an electric vehicle charging
station. However, it is the policy of this State to promote,
encourage, and remove obstacles to the use of an electric
vehicle charging station.
(c) An electric vehicle charging station shall meet
applicable health and safety standards and requirements

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imposed by State and local authorities, and all other
applicable zoning, land use, or other ordinances or land use
permits.
(d) If approval is required for the installation or use of
an electric vehicle charging station, the association shall
process and approve the application in the same manner as an
application for approval of an architectural modification to
the property, and the association shall not willfully avoid or
delay the adjudication of the application. The approval or
denial of an application shall be in writing. If an
application is not denied in writing within 60 days from the
date of the receipt of the application, the application shall
be deemed approved unless the delay is the result of a
reasonable request for additional information.
(e) If the electric vehicle charging station is to be
placed in a common area or exclusive use common area, as
designated by the condominium or common interest community
association, the following applies:
(1) The unit owner shall first obtain approval from
the association to install the electric vehicle charging
station and the association shall approve the installation
if the unit owner agrees, in writing, to:
(i) comply with the association's architectural
standards for the installation of the electric vehicle
charging station;
(ii) engage a licensed electrical contractor to

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install the electric vehicle charging station;
(iii) within 14 days after approval, provide a
certificate of insurance that names the association as
an additional insured party under the unit owner's
insurance policy as required under paragraph (3); and
(iv) pay for both the costs associated with the
installation of and the electricity usage associated
with the electric vehicle charging station.
(2) The unit owner, and each successive unit owner of
the electric vehicle charging station, is responsible for:
(i) costs for damage to the electric vehicle
charging station, common area, exclusive use common
area, or separate interests resulting from the
installation, maintenance, repair, removal, or
replacement of the electric vehicle charging station;
(ii) costs for the maintenance, repair, and
replacement of the electric vehicle charging station
until it has been removed, and for the restoration of
the common area after removal;
(iii) costs of electricity associated with the
charging station, which shall be based on:
(A) an inexpensive submetering device; or
(B) a reasonable calculation of cost, based on
the average miles driven, efficiency of the
electric vehicle calculated by the United States
Environmental Protection Agency, and the cost of

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electricity for the common area; and
(iv) disclosing to a prospective buyer the
existence of any electric vehicle charging station of
the unit owner and the related responsibilities of the
unit owner under this Section.
(3) The purpose of the costs under paragraph (2) is
for the reasonable reimbursement of electricity usage, and
shall not be set to deliberately exceed the reasonable
reimbursement.
(4) The unit owner of the electric vehicle charging
station, whether the electric vehicle charging station is
located within the common area or exclusive use common
area, shall, at all times, maintain a liability coverage
policy. The unit owner that submitted the application to
install the electric vehicle charging station shall
provide the association with the corresponding certificate
of insurance with 14 days after approval of the
application. The unit owner, and each successive unit
owner, shall provide the association with the certificate
of insurance annually thereafter.
(5) A unit owner is not required to maintain a
homeowner liability coverage policy for an existing
National Electrical Manufacturers Association standard
alternating current power plug.
(f) Except as provided in subsection (g), the installation
of an electric vehicle charging station for the exclusive use

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of a unit owner in a common area that is not an exclusive use
common area shall be authorized by the association only if
installation in the unit owner's designated parking space is
impossible or unreasonably expensive. In such an event, the
association shall enter into a license agreement with the unit
owner for the use of the space in a common area, and the unit
owner shall comply with all of the requirements in subsection
(e).
(g) An association may install an electric vehicle
charging station in the common area for the use of all unit
owners and members of the association. The association shall
develop appropriate terms of use for the electric vehicle
charging station.
(h) An association may create a new parking space where
one did not previously exist to facilitate the installation of
an electric vehicle charging station.
(i) An association that willfully violates this Section
shall be liable to the unit owner for actual damages and shall
pay a civil penalty to the unit owner not to exceed $1,000.
(j) In any action by a unit owner requesting to have an
electric vehicle charging station installed and seeking to
enforce compliance with this Section, the court shall award
reasonable attorney's fees to a prevailing plaintiff.
Section 45-35. Electric vehicle charging system policy for
renters.

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(a) Notwithstanding any provision in the lease to the
contrary, and subject to subsection (b):
(1) A tenant may install, at the tenant's expense for
the tenant's own use, a level 1 or level 2 electric vehicle
charging system on or in the leased premises.
(2) A landlord shall not assess or charge a tenant any
fee for the placement or use of an electric vehicle
charging system, except that:
(i) The landlord may:
(A) require reimbursement for the actual cost
of electricity provided by the landlord that was
used by the electric vehicle charging system; or
(B) charge a reasonable fee for access. If the
electric vehicle charging system is part of a
network for which a network fee is charged, the
landlord's reimbursement may include the amount of
the network fee. Nothing in this subparagraph
requires a landlord to impose upon a tenant a fee
or charge other than the rental payments specified
in the lease.
(ii) The landlord may require reimbursement for
the cost of the installation of the electric vehicle
charging system, including any additions or upgrades
to existing wiring directly attributable to the
requirements of the electric vehicle charging system,
if the landlord places or causes the electric vehicle

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charging system to be placed at the request of the
tenant.
(iii) If the tenant desires to place an electric
vehicle charging system in an area accessible to other
tenants, the landlord may assess or charge the tenant
a reasonable fee to reserve a specific parking space
in which to install the electric vehicle charging
system.
(b) A landlord may require a tenant to comply with:
(1) bona fide safety requirements consistent with an
applicable building code or recognized safety standard for
the protection of persons and property;
(2) a requirement that the electric vehicle charging
system be registered with the landlord within 30 days
after installation; or
(3) reasonable aesthetic provisions that govern the
dimensions, placement, or external appearance of an
electric vehicle charging system.
(c) A tenant may place an electric vehicle charging system
in an area accessible to other tenants if:
(1) the electric vehicle charging system is in
compliance with all applicable requirements adopted by a
landlord under subsection (b); and
(2) the tenant agrees, in writing, to:
(i) comply with the landlord's design
specifications for the installation of an electric

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vehicle charging system;
(ii) engage the services of a duly licensed and
registered electrical contractor familiar with the
installation and code requirements of an electric
vehicle charging system; and
(iii) provide, within 14 days after receiving the
landlord's consent for the installation, a certificate
of insurance naming the landlord as an additional
insured party on the tenant's renter's insurance
policy for any claim related to the installation,
maintenance, or use of the electric vehicle charging
system or, at the landlord's option, reimbursement to
the landlord for the actual cost of any increased
insurance premium amount attributable to the electric
vehicle charging system, notwithstanding any provision
to the contrary in the lease. The tenant shall provide
reimbursement for an increased insurance premium
amount within 14 days after the tenant receives the
landlord's invoice for the amount attributable to the
electric vehicle charging system.
(d) If the landlord consents to a tenant's installation of
an electric vehicle charging system on property accessible to
other tenants, including a parking space, carport, or garage
stall, then, unless otherwise specified in a written agreement
with the landlord:
(1) The tenant, and each successive tenant with

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exclusive rights to the area where the electric vehicle
charging system is installed, is responsible for costs for
damages to the electric vehicle charging system and to any
other property of the landlord or another tenant resulting
from the installation, maintenance, repair, removal, or
replacement of the electric vehicle charging system.
(i) Costs under this paragraph shall be based on:
(A) an inexpensive submetering device; or
(B) a reasonable calculation of cost, based on
the average miles driven, efficiency of the
electric vehicle calculated by the United States
Environmental Protection Agency, and the cost of
electricity for the common area.
(ii) The purpose of the costs under this paragraph
is for reasonable reimbursement of electricity usage
and shall not be set to deliberately exceed that
reasonable reimbursement.
(2) Each successive tenant with exclusive rights to
the area where the electric vehicle charging system is
installed shall assume responsibility for the repair,
maintenance, removal, and replacement of the electric
vehicle charging system until the electric vehicle
charging system is removed.
(3) The tenant, and each successive tenant with
exclusive rights to the area where the electric vehicle
charging system is installed, shall, at all times, have

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and maintain an insurance policy covering the obligations
of the tenant under this subsection and shall name the
landlord as an additional insured party under the policy.
(4) The tenant, and each successive tenant with
exclusive rights to the area where the electric vehicle
charging system is installed, is responsible for removing
the system if reasonably necessary or convenient for the
repair, maintenance, or replacement of any property of the
landlord, whether or not leased to another tenant.
(e) An electric vehicle charging system installed at the
tenant's cost is the property of the tenant. Upon termination
of the lease, if the electric vehicle charging system is
removable, the tenant may either remove it or sell it to the
landlord or another tenant for an agreed price. Nothing in
this subsection requires the landlord or another tenant to
purchase the electric vehicle charging system.
(f) A landlord that willfully violates this Section shall
be liable to the tenant for actual damages, and shall pay a
civil penalty to the tenant in an amount not to exceed $1,000.
(g) In any action by a tenant requesting to have an
electric vehicle charging system installed and seeking to
enforce compliance with this Section, the court shall award
reasonable attorney's fees to a prevailing plaintiff.
Article 90. Amendatory Provisions

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Section 90-5. The Illinois Administrative Procedure Act is
amended by adding Sections 5-45.8, 5-45.9, and 5-49.10 as
follows:
(5 ILCS 100/5-45.8 new)
Sec. 5-45.8. Emergency rulemaking; Energy Community
Reinvestment Act. To provide for the expeditious and timely
implementation of the Energy Community Reinvestment Act,
emergency rules may be adopted in accordance with Section 5-45
by the Department of Commerce and Economic Opportunity to
implement Section 20-15 of the Energy Community Reinvestment
Act with respect to applications for designation as Clean
Energy Empowerment Zones. The adoption of emergency rules
authorized by Section 5-45 and this Section is deemed to be
necessary for the public interest, safety, and welfare.
(5 ILCS 100/5-45.9 new)
Sec. 5-45.9. Emergency rulemaking; Public Utilities Act.
To provide for the expeditious and timely implementation of
this amendatory Act of the 102nd General Assembly, emergency
rules may be adopted in accordance with Section 5-45 by the
Illinois Commerce Commission to implement the changes made by
this amendatory Act of the 102nd General Assembly to the
Public Utilities Act. The adoption of emergency rules
authorized by Section 5-45 and this Section is deemed to be
necessary for the public interest, safety, and welfare.

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(5 ILCS 100/5-49.10 new)
Sec. 5-49.10. Emergency rulemaking; Public Utilities
Intervenor Compensation Act. To provide for the expeditious
and timely implementation of the Public Utilities Intervenor
Compensation Act, emergency rules may be adopted in accordance
with Section 5-45 by the Illinois Commerce Commission to
implement the Public Utilities Intervenor Compensation Act.
The adoption of emergency rules authorized by Section 5-45 and
this Section is deemed to be necessary for the public
interest, safety, and welfare.
This Section is repealed on January 1, 2026.
Section 90-10. The Electric Vehicle Act is amended by
adding Sections 30, 35, and 40 as follows:
(20 ILCS 627/30 new)
Sec. 30. Electric Vehicle Access for All Program.
(a) Purpose. The General Assembly finds that it is
necessary to provide access to electric vehicles to residents
in communities for individuals whom car ownership is not an
option, affordable, or a preference, particularly for
environmental justice communities and low-income communities.
(b) Definitions. As used in this Section:
"Department" means the Department of Commerce and Economic
Opportunity.

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"Environmental justice communities" means the definition
of that term based on existing methodologies and findings,
used and as may be updated by the Illinois Power Agency and its
program administrator in the Illinois Solar for All Program.
"Low-income" means persons and families whose income does
not exceed 80% of area median income, adjusted for family size
and revised every 2 years.
(c) Within 120 days after the effective date of this
amendatory Act of the 102nd General Assembly, and for a period
of not less than 36 months thereafter, the Department of
Commerce and Economic Opportunity shall establish and
implement an Electric Vehicle Access for All Program designed
to maximize opportunities for carbon-free transportation
across the State, particularly targeting environmental justice
and low-income communities, which shall include the following
initiatives:
(1) Car Sharing Program. The Department of Commerce
and Economic Opportunity shall develop and implement an
Electric Vehicle Car Sharing Program that provides
residents with opportunities to use electric vehicles
owned by third parties for occasional commutes,
employment, or other needs.
(2) Carbon-Free Last Mile of Commutes Program. The
Department shall develop a Program to address the "last
mile" of commutes, enabling a larger number of residents
to access public transportation, and reduce the pollution

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impact of the entire commute.
(3) Community Energy, Climate, and Jobs Plans. The
Department shall dedicate a portion of funding for local
governments' eligible Community Energy, Climate, and Jobs
Plans that include Electric Vehicle Access for All Program
initiatives. To the extent possible, the Department shall
coordinate the Electric Vehicle Access for All Program
with the other programs established in this Act.
(4) Low-income rebate program. A rebate of up to
$4,000 at time of purchase shall be made available to
low-income residents of Illinois.
(i) Such rebates are only available for new
passenger battery electric vehicles at a prerebate
cost of $45,000 or less or for used battery electric
vehicles at a prerebate cost of $35,000 or less. This
cost cut off is exclusive of any electric
vehicle-specific rebates offered by any level of
government; if the cost of the electric vehicle would
be higher than the cut off-points mentioned above
without any electric vehicle-specific rebates, then
the vehicle is not eligible for rebates.
(ii) This low-income rebate may be combined with
other rebates for eligible vehicles and drivers. The
funds for this program shall be derived from 50% of the
Electric Vehicle Access for All Program funds, up to
$5,250,000 per year. The rebate may only be applied

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one time per Vehicle Identification Number. The rebate
may only be used once per person in any 5-year period.
To be eligible for the low-income rebate, a purchaser
must be a resident of Illinois and provide proof of
residence at the time of purchase. The State shall
direct rebate recipients to local electric utilities
where additional charging equipment rebates may be
available.
(c) The Electric Vehicle Access for All Program and its
initiatives shall be designed to maximize opportunities for
carbon-free transportation across the State, particularly
targeting environmental justice and low-income communities,
and to provide grants to pilot programs with the purpose of
bridging public transportation gaps between residences and
employment locations. Eligible programs may include electric
shuttles, electric and nonelectric bicycle and scooter
sharing, electric vehicle sharing, and other carbon-free
alternatives. The Department of Commerce and Economic
Opportunity shall hire or select, through a competitive
bidding program, a program administrator to oversee and
administer the Program.
(d) In conducting the Program, the Department of Commerce
and Economic Opportunity shall partner with appropriate
transit agencies, employers, community organizations, local
governments, and other transportation services to increase the
number of employment, healthcare, civic, education, or

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recreation locations reachable, in coordination with public
transit, with the addition of Electric Vehicle Access for All
Program initiatives and investments. The Department of
Commerce and Economic Opportunity shall additionally partner
with local governments engaging in Community Energy, Climate,
and Job Planning, as described in the Community Energy,
Climate, and Jobs Planning Act, to implement programs
efficiently with needs identified in Community Energy,
Climate, and Jobs Plans.
(e) Projects, programs, or other initiatives funded
through this Program must participate in time-of-use rates,
hourly pricing electric rates, charging plans or rates that
encourage off-peak charging, optimized charging programs,
demand response, or similar programs as part of a beneficial
electrification program, as provided under Section 16-107.8 of
the Public Utilities Act, to the extent practicable, to
minimize the impact to the electric grid of new electric
vehicle charging infrastructure and to use electricity at
times when renewable energy generation is highest.
(f) The Department of Commerce and Economic Opportunity
shall design the Program within the budget described under
Section 16-107.8 of the Public Utilities Act and invoice the
electric utilities specified in Section 16-107.8 of the Public
Utilities Act for the costs incurred in the execution of the
Program.
(g) The Department of Commerce and Economic Opportunity

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shall report to the Governor and the General Assembly
regarding the effectiveness of the Program no later than
October 1, 2023.
(20 ILCS 627/35 new)
Sec. 35. Administrative review. All final administrative
decisions, including, but not limited to, funding allocation
and rules issued by the Department under this Act are subject
to judicial review under the Administrative Review Law. No
action may be commenced under this Section prior to 60 days
after the complainant has given notice in writing of the
action to the Department.
(20 ILCS 627/40 new)
Sec. 40. Authorized expenditure of State-controlled funds
to accelerate electric vehicle adoption.
(a) Within 120 days after the effective date of this
amendatory Act of the 102nd General Assembly, the
Environmental Protection Agency must initiate a comprehensive
stakeholder process to solicit input on the development of an
updated plan for expenditure of the remaining Volkswagen
Settlement Environment Mitigation Fund and for the use of the
$70,000,000 funds from Article 8, Section 25 of Public Act
101-29. At a minimum, the stakeholder process shall include
representatives from community-based organizations in
environmental justice communities, community-based

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organizations serving economically disadvantaged persons and
families, and community-based organizations focused on
transportation equality and access. These stakeholders shall
be representative of the entire State and located throughout
the State. The Environmental Protection Agency shall provide
administrative support for the stakeholder process and all
meetings shall be accessible with rotating locations, call-in
options, and materials and agendas circulated well in advance,
and there shall be opportunities for input outside of meetings
from those with limited capacity and ability to attend via
one-on-one meetings, surveys, and calls subject to compliance
with the Open Meetings Act. The plan should prioritize the
purchase of electric vehicles and equipment, including public
transit, school buses, and other public fleet vehicles and
spending should be prioritized toward economically
disadvantaged communities and environmental justice
communities.
(b) Within 9 months after the effective date of this
amendatory Act of the 102nd General Assembly, the
Environmental Protection Agency must publish a comprehensive
plan for both the use of the Volkswagen Settlement Environment
Mitigation Fund and for the $70,000,000 funds from Article 8,
Section 25 of Public Act 101-29, as amended, reappropriated
from the Build Illinois Bond Fund to the Environmental
Protection Agency for grants for transportation
electrification infrastructure projects; including, but not

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limited to grants for the purpose of encouraging electric
vehicle charging infrastructure, prioritizing investments in
medium and heavy-duty charging, and electrifying public
transit, school bus transit, and vehicles operated by or on
behalf of public agencies. Those Volkswagen and capital funds
which are allocated to charging infrastructure must be spent
within 3 years of passage and at least 25% of those funds must
be spent per year until the funds are depleted.
(c) The Environmental Protection Agency shall issue
reports, to be posted on its public website and sent to the
Illinois Commerce Commission, summarizing all funds granted
and investments made using funds from the Volkswagen
Settlement Environmental Mitigation Fund, and all grants or
investments currently planned to be made from said fund but
not yet disbursed, at a minimum of the following 3 times:
(1) no later than 2 weeks prior to the first meeting of
the Plan Development Stakeholder Process initiated by the
Illinois Commerce Commission;
(2) no later than 6 months prior to the Initiating
Orders of the Multi-Year Integrated Grid Plan by the
Illinois Commerce Commission; and
(3) when the Fund has been fully spent, or when less
than $1,000,000 remains in the fund for a period of more
than 6 months.
Section 90-12. The Energy Efficient Building Act is

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amended by changing Sections 10, 15, 20, 30, and 45 and by
adding Section 55 as follows:
(20 ILCS 3125/10)
Sec. 10. Definitions.
"Board" means the Capital Development Board.
"Building" includes both residential buildings and
commercial buildings.
"Code" means the latest published edition of the
International Code Council's International Energy Conservation
Code as adopted by the Board, including any published
supplements adopted by the Board and any amendments and
adaptations to the Code that are made by the Board.
"Commercial building" means any building except a building
that is a residential building, as defined in this Section.
"Department" means the Department of Commerce and Economic
Opportunity.
"Municipality" means any city, village, or incorporated
town.
"Residential building" means (i) a detached one-family or
2-family dwelling or (ii) any building that is 3 stories or
less in height above grade that contains multiple dwelling
units, in which the occupants reside on a primarily permanent
basis, such as a townhouse, a row house, an apartment house, a
convent, a monastery, a rectory, a fraternity or sorority
house, a dormitory, and a rooming house; provided, however,

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that when applied to a building located within the boundaries
of a municipality having a population of 1,000,000 or more,
the term "residential building" means a building containing
one or more dwelling units, not exceeding 4 stories above
grade, where occupants are primarily permanent.
"Site energy index" means a scalar published by the
Pacific Northwest National Laboratories representing the ratio
of the site energy performance of an evaluated code compared
to the site energy performance of the 2006 International
Energy Conservation Code. A site energy index includes only
conservation measures and excludes net energy credit for any
on-site or off-site energy production.
(Source: P.A. 101-144, eff. 7-26-19.)
(20 ILCS 3125/15)
Sec. 15. Energy Efficient Building Code. The Board, in
consultation with the Department, shall adopt the Code as
minimum requirements for commercial buildings, applying to the
construction of, renovations to, and additions to all
commercial buildings in the State. The Board, in consultation
with the Department, shall also adopt the Code as the minimum
and maximum requirements for residential buildings, applying
to the construction of, renovations to, and additions to all
residential buildings in the State, except as provided for in
Section 45 of this Act. The Board may appropriately adapt the
International Energy Conservation Code to apply to the

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particular economy, population distribution, geography, and
climate of the State and construction therein, consistent with
the public policy objectives of this Act.
(Source: P.A. 96-778, eff. 8-28-09.)
(20 ILCS 3125/20)
Sec. 20. Applicability.
(a) The Board shall review and adopt the Code within one
year after its publication. The Code shall take effect within
6 months after it is adopted by the Board, except that,
beginning January 1, 2012, the Code adopted in 2012 shall take
effect on January 1, 2013. Except as otherwise provided in
this Act, the Code shall apply to (i) any new building or
structure in this State for which a building permit
application is received by a municipality or county and (ii)
beginning on the effective date of this amendatory Act of the
100th General Assembly, each State facility specified in
Section 4.01 of the Capital Development Board Act. In the case
of any addition, alteration, renovation, or repair to an
existing residential or commercial structure, the Code adopted
under this Act applies only to the portions of that structure
that are being added, altered, renovated, or repaired. The
changes made to this Section by this amendatory Act of the 97th
General Assembly shall in no way invalidate or otherwise
affect contracts entered into on or before the effective date
of this amendatory Act of the 97th General Assembly.

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(b) The following buildings shall be exempt from the Code:
(1) Buildings otherwise exempt from the provisions of
a locally adopted building code and buildings that do not
contain a conditioned space.
(2) Buildings that do not use either electricity or
fossil fuel for comfort conditioning. For purposes of
determining whether this exemption applies, a building
will be presumed to be heated by electricity, even in the
absence of equipment used for electric comfort heating,
whenever the building is provided with electrical service
in excess of 100 amps, unless the code enforcement
official determines that this electrical service is
necessary for purposes other than providing electric
comfort heating.
(3) Historic buildings. This exemption shall apply to
those buildings that are listed on the National Register
of Historic Places or the Illinois Register of Historic
Places, and to those buildings that have been designated
as historically significant by a local governing body that
is authorized to make such designations.
(4) (Blank).
(5) Other buildings specified as exempt by the
International Energy Conservation Code.
(c) Additions, alterations, renovations, or repairs to an
existing building, building system, or portion thereof shall
conform to the provisions of the Code as they relate to new

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construction without requiring the unaltered portion of the
existing building or building system to comply with the Code.
The following need not comply with the Code, provided that the
energy use of the building is not increased: (i) storm windows
installed over existing fenestration, (ii) glass-only
replacements in an existing sash and frame, (iii) existing
ceiling, wall, or floor cavities exposed during construction,
provided that these cavities are filled with insulation, and
(iv) construction where the existing roof, wall, or floor is
not exposed.
(d) A unit of local government that does not regulate
energy efficient building standards is not required to adopt,
enforce, or administer the Code; however, any energy efficient
building standards adopted by a unit of local government must
comply with this Act. If a unit of local government does not
regulate energy efficient building standards, any
construction, renovation, or addition to buildings or
structures is subject to the provisions contained in this Act.
(Source: P.A. 100-729, eff. 8-3-18.)
(20 ILCS 3125/30)
Sec. 30. Enforcement. The Board, in consultation with the
Department, shall determine procedures for compliance with the
Code. These procedures may include but need not be limited to
certification by a national, State, or local accredited energy
conservation program or inspections from private

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Code-certified inspectors using the Code. For purposes of the
Illinois Stretch Energy Code under Section 55 of this Act, the
Board shall allow and encourage, as an alternative compliance
mechanism, project certification by a nationally recognized
nonprofit certification organization specializing in
high-performance passive buildings and offering
climate-specific building energy standards that require equal
or better energy performance than the Illinois Stretch Energy
Code.
(Source: P.A. 93-936, eff. 8-13-04.)
(20 ILCS 3125/45)
Sec. 45. Home rule.
(a) (Blank) No unit of local government, including any
home rule unit, may regulate energy efficient building
standards for commercial buildings in a manner that is less
stringent than the provisions contained in this Act.
(b) No unit of local government, including any home rule
unit, may regulate energy efficient building standards for
residential or commercial buildings in a manner that is either
less or more stringent than the standards established pursuant
to this Act; provided, however, that the following entities
may regulate energy efficient building standards for
residential or commercial buildings in a manner that is more
stringent than the provisions contained in this Act: (i) a
unit of local government, including a home rule unit, that

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has, on or before May 15, 2009, adopted or incorporated by
reference energy efficient building standards for residential
buildings that are equivalent to or more stringent than the
2006 International Energy Conservation Code, (ii) a unit of
local government, including a home rule unit, that has, on or
before May 15, 2009, provided to the Capital Development
Board, as required by Section 10.18 of the Capital Development
Board Act, an identification of an energy efficient building
code or amendment that is equivalent to or more stringent than
the 2006 International Energy Conservation Code, (iii) a
municipality that has adopted the Illinois Stretch Energy
Code, and (iv) (iii) a municipality with a population of
1,000,000 or more.
(c) No unit of local government, including any home rule
unit or unit of local government that is subject to State
regulation under the Code as provided in Section 15 of this
Act, may hereafter enact any annexation ordinance or
resolution, or require or enter into any annexation agreement,
that imposes energy efficient building standards for
residential or commercial buildings that are either less or
more stringent than the energy efficiency standards in effect,
at the time of construction, throughout the unit of local
government, except for the Illinois Stretch Energy Code.
(d) This Section is a denial and limitation of home rule
powers and functions under subsection (i) of Section 6 of
Article VII of the Illinois Constitution on the concurrent

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exercise by home rule units of powers and functions exercised
by the State. Nothing in this Section, however, prevents a
unit of local government from adopting an energy efficiency
code or standards for commercial buildings that are more
stringent than the Code under this Act.
(Source: P.A. 99-639, eff. 7-28-16.)
(20 ILCS 3125/55 new)
Sec. 55. Illinois Stretch Energy Code.
(a) The Board, in consultation with the Department, shall
create and adopt the Illinois Stretch Energy Code, to allow
municipalities and projects authorized or funded by the Board
to achieve more energy efficiency in buildings than the
Illinois Energy Conservation Code through a consistent pathway
across the State. The Illinois Stretch Energy Code shall be
available for adoption by any municipality and shall set
minimum energy efficiency requirements, taking the place of
the Illinois Energy Conservation Code within any municipality
that adopts the Illinois Stretch Energy Code.
(b) The Illinois Stretch Energy Code shall have separate
components for commercial and residential buildings, which may
be adopted by the municipality jointly or separately.
(c) The Illinois Stretch Energy Code shall apply to all
projects to which an energy conservation code is applicable
that are authorized or funded in any part by the Board after
January 1, 2023.

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(d) Development of the Illinois Stretch Energy Code shall
be completed and available for adoption by municipalities by
December 31, 2022.
(e) Consistent with the requirements under paragraph (2.5)
of subsection (g) of Section 8-103B of the Public Utilities
Act and under paragraph (2) of subsection (j) of Section
8-104.1 of the Public Utilities Act, municipalities that adopt
the Illinois Stretch Energy Code may use utility programs to
support compliance with the Illinois Stretch Energy Code. The
amount of savings from such utility efforts that may be
counted toward achievement of their cumulative persisting
annual savings goals shall be based on reasonable estimates of
the increase in savings resulting from the utility efforts,
relative to reasonable approximations of what would have
occurred absent the utility involvement.
(f) The Illinois Stretch Energy Code's residential
components shall:
(1) apply to residential buildings as defined under
Section 10;
(2) set performance targets using a site energy index
with reductions relative to the 2006 International Energy
Conservation Code; and
(3) include stretch energy codes with site energy
index standards and adoption dates as follows: by no later
than December 31, 2022, the Board shall create and adopt a
stretch energy code with a site energy index no greater

HB0804 Engrossed - 243 - LRB102 10881 SPS 16211 b
than 0.50 of the 2006 International Energy Conservation
Code; by no later than December 31, 2025, the Board shall
create and adopt a stretch energy code with a site energy
index no greater than 0.40 of the 2006 International
Energy Conservation Code, unless the Board identifies
unanticipated burdens associated with the stretch energy
code adopted in 2022, in which case the Board may adopt a
stretch energy code with a site energy index no greater
than 0.42 of the 2006 International Energy Conservation
Code, provided that the more relaxed standard has a site
energy index that is at least 0.05 more restrictive than
the 2024 International Energy Conservation Code; by no
later than December 31, 2028, the Board shall create and
adopt a stretch energy code with a site energy index no
greater than 0.33 of the 2006 International Energy
Conservation Code, unless the Board identifies
unanticipated burdens associated with the stretch energy
code adopted in 2025, in which case the Board may adopt a
stretch energy code with a site energy index no greater
than 0.35 of the 2006 International Energy Conservation
Code, but only if that more relaxed standard has a site
energy index that is at least 0.05 more restrictive than
the 2027 International Energy Conservation Code; and by no
later than December 31, 2031, the Board shall create and
adopt a stretch energy code with a site energy index no
greater than 0.25 of the 2006 International Energy

HB0804 Engrossed - 244 - LRB102 10881 SPS 16211 b
Conservation Code.
(g) The Illinois Stretch Energy Code's commercial
components shall:
(1) apply to commercial buildings as defined under
Section 10;
(2) set performance targets using a site energy index
with reductions relative to the 2006 International Energy
Conservation Code; and
(3) include stretch energy codes with site energy
index standards and adoption dates as follows: by no later
than December 31, 2022, the Board shall create and adopt a
stretch energy code with a site energy index no greater
than 0.60 of the 2006 International Energy Conservation
Code; by no later than December 31, 2025, the Board shall
create and adopt a stretch energy code with a site energy
index no greater than 0.50 of the 2006 International
Energy Conservation Code; by no later than December 31,
2028, the Board shall create and adopt a stretch energy
code with a site energy index no greater than 0.44 of the
2006 International Energy Conservation Code; and by no
later than December 31, 2031, the Board shall create and
adopt a stretch energy code with a site energy index no
greater than 0.39 of the 2006 International Energy
Conservation Code.
(h) The process for the creation of the Illinois Stretch
Energy Code includes:

HB0804 Engrossed - 245 - LRB102 10881 SPS 16211 b
(1) within 60 days after the effective date of this
amendatory Act of the 102nd General Assembly, the Capital
Development Board shall establish an Illinois Stretch
Energy Code Task Force to advise and provide technical
assistance and recommendations to the Capital Development
Board for the Illinois Stretch Energy Code, which shall:
(A) advise the Capital Development Board on
creation of interim performance targets, code
requirements, and an implementation plan for the
Illinois Stretch Energy Code;
(B) recommend amendments to proposed rules issued
by the Capital Development Board;
(C) recommend complementary programs or policies;
(D) complete recommendations and development for
the Illinois Stretch Energy Code elements and
requirements by July 31, 2022;
(E) be composed of, but not limited to,
representatives, or their designees, from the
following entities:
(i) a representative from a group that
represents environmental justice;
(ii) a representative of a nonprofit or
professional association advocating for the
environment;
(iii) a representative of an organization
representing local governments in the metropolitan

HB0804 Engrossed - 246 - LRB102 10881 SPS 16211 b
Chicago region;
(iv) a representative of the City of Chicago;
(v) a representative of an organization
representing local governments outside the
metropolitan Chicago region;
(vi) a representative for the investor-owned
utilities of Illinois;
(vii) an energy-efficiency advocate with
technical expertise in single-family residential
buildings;
(viii) an energy-efficiency advocate with
technical expertise in commercial buildings;
(ix) an energy-efficiency advocate with
technical expertise in multifamily buildings, such
as an affordable housing developer;
(x) a representative from the architecture or
engineering industry;
(xi) a representative from a home builders
association;
(xii) a representative from the commercial
building industry;
(xiii) a representative of the enforcement
industry, such as a code official or energy rater;
(xiv) a representative of organized labor; and
(xv) other experts or organizations deemed
necessary by the Capital Development Board; and

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(F) be co-chaired by:
(i) a representative of the environmental
community;
(ii) a representative of the environmental
justice community; and
(iii) a municipal representative.
(2) As part of its deliberations, the Illinois Stretch
Energy Code Task Force shall actively solicit input from
other energy code stakeholders and interested parties.
Section 90-15. The Illinois Power Agency Act is amended by
changing Sections 1-5, 1-10, 1-20, 1-56, and 1-75 as follows:
(20 ILCS 3855/1-5)
Sec. 1-5. Legislative declarations and findings. The
General Assembly finds and declares:
(1) The health, welfare, and prosperity of all
Illinois residents citizens require the provision of
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability.
(1.5) To provide the highest quality of life for the
residents of Illinois, and to provide for a clean and
healthy environment, it is the policy of this State to
rapidly transition to 100% renewable energy.

HB0804 Engrossed - 248 - LRB102 10881 SPS 16211 b
(2) (Blank).
(3) (Blank).
(4) It is necessary to improve the process of
procuring electricity to serve Illinois residents, to
promote investment in energy efficiency and
demand-response measures, and to maintain and support
development of clean coal technologies, generation
resources that operate at all hours of the day and under
all weather conditions, zero emission facilities, and
renewable resources.
(5) Procuring a diverse electricity supply portfolio
will ensure the lowest total cost over time for adequate,
reliable, efficient, and environmentally sustainable
electric service.
(6) Including renewable resources and zero emission
credits from zero emission facilities in that portfolio
will reduce long-term direct and indirect costs to
consumers by decreasing environmental impacts and by
avoiding or delaying the need for new generation,
transmission, and distribution infrastructure. Developing
new renewable energy resources in Illinois, including
brownfield solar projects and community solar projects,
will help to diversify Illinois electricity supply, avoid
and reduce pollution, reduce peak demand, and enhance
public health and well-being of Illinois residents.
(7) Developing community solar projects in Illinois

HB0804 Engrossed - 249 - LRB102 10881 SPS 16211 b
will help to expand access to renewable energy resources
to more Illinois residents.
(8) Developing brownfield solar projects in Illinois
will 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.
(9) Energy efficiency, demand-response measures, zero
emission energy, and renewable energy are resources
currently underused in Illinois. These resources should be
used, when cost effective, to reduce costs to consumers,
improve reliability, and improve environmental quality and
public health.
(10) The State should encourage the use of advanced
clean coal technologies that capture and sequester carbon
dioxide emissions to advance environmental protection
goals and to demonstrate the viability of coal and
coal-derived fuels in a carbon-constrained economy.
(11) The General Assembly enacted Public Act 96-0795
to reform the State's purchasing processes, recognizing
that government procurement is susceptible to abuse if
structural and procedural safeguards are not in place to
ensure independence, insulation, oversight, and
transparency.
(12) The principles that underlie the procurement
reform legislation apply also in the context of power

HB0804 Engrossed - 250 - LRB102 10881 SPS 16211 b
purchasing.
(13) To ensure that the benefits of installing
renewable resources are available to all Illinois
residents and located across the State, subject to
appropriation, it is necessary for the Illinois Power
Agency to provide public information and educational
resources on how residents can benefit from the expansion
of renewable energy in Illinois and participate in the
Illinois Solar for All Program established in Section 1-56
of this Act, the Adjustable Block Program established in
Section 1-75 of this Act, the job training programs
established by paragraph (1) of subsection (a) of Section
16-108.12 of the Public Utilities Act, and the programs
and resources established by the Clean Jobs Workforce and
Contractor Equity Act.
The General Assembly therefore finds that it is necessary
to create the Illinois Power Agency and that the goals and
objectives of that Agency are to accomplish each of the
following:
(A) Develop electricity procurement plans 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 electric utilities that on December
31, 2005 provided electric service to at least 100,000
customers in Illinois and for 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.
The procurement plan shall be updated on an annual basis
and shall include renewable energy resources and,
beginning with the delivery year commencing June 1, 2017,
zero emission credits from zero emission facilities
sufficient to achieve the standards specified in this Act.
(B) Conduct the competitive procurement processes
identified in this Act.
(C) Develop electric generation and co-generation
facilities that use indigenous coal or renewable
resources, or both, financed with bonds issued by the
Illinois Finance Authority.
(D) Supply electricity from the Agency's facilities at
cost to one or more of the following: municipal electric
systems, governmental aggregators, or rural electric
cooperatives in Illinois.
(E) Ensure that the process of power procurement is
conducted in an ethical and transparent fashion, immune
from improper influence.
(F) Continue to review its policies and practices to
determine how best to meet its mission of providing the
lowest cost power to the greatest number of people, at any
given point in time, in accordance with applicable law.
(G) Operate in a structurally insulated, independent,

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and transparent fashion so that nothing impedes the
Agency's mission to secure power at the best prices the
market will bear, provided that the Agency meets all
applicable legal requirements.
(H) Implement renewable energy procurement and
training programs throughout the State to diversify
Illinois electricity supply, improve reliability, avoid
and reduce pollution, reduce peak demand, and enhance
public health and well-being of Illinois residents,
including low-income residents.
(Source: P.A. 99-906, eff. 6-1-17.)
(20 ILCS 3855/1-10)
Sec. 1-10. Definitions.
"Agency" means the Illinois Power Agency.
"Agency loan agreement" means any agreement pursuant to
which the Illinois Finance Authority agrees to loan the
proceeds of revenue bonds issued with respect to a project to
the Agency upon terms providing for loan repayment
installments at least sufficient to pay when due all principal
of, interest and premium, if any, on those revenue bonds, and
providing for maintenance, insurance, and other matters in
respect of the project.
"Authority" means the Illinois Finance Authority.
"Brownfield site photovoltaic project" means photovoltaics
that are:

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(1) interconnected to an electric utility as defined
in this Section, a municipal utility as defined in this
Section, a public utility as defined in Section 3-105 of
the Public Utilities Act, or an electric cooperative, as
defined in Section 3-119 of the Public Utilities Act; and
(2) located at a site that is regulated by any of the
following entities under the following programs:
(A) the United States Environmental Protection
Agency under the federal Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as
amended;
(B) the United States Environmental Protection
Agency under the Corrective Action Program of the
federal Resource Conservation and Recovery Act, as
amended;
(C) the Illinois Environmental Protection Agency
under the Illinois Site Remediation Program; or
(D) the Illinois Environmental Protection Agency
under the Illinois Solid Waste Program.
"Clean coal facility" means an electric generating
facility that uses primarily coal as a feedstock and that
captures and sequesters carbon dioxide emissions at the
following levels: at least 50% of the total carbon dioxide
emissions that the facility would otherwise emit if, at the
time construction commences, the facility is scheduled to
commence operation before 2016, at least 70% of the total

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carbon dioxide emissions that the facility would otherwise
emit if, at the time construction commences, the facility is
scheduled to commence operation during 2016 or 2017, and at
least 90% of the total carbon dioxide emissions that the
facility would otherwise emit if, at the time construction
commences, the facility is scheduled to commence operation
after 2017. The power block of the clean coal facility shall
not exceed allowable emission rates for sulfur dioxide,
nitrogen oxides, carbon monoxide, particulates and mercury for
a natural gas-fired combined-cycle facility the same size as
and in the same location as the clean coal facility at the time
the clean coal facility obtains an approved air permit. All
coal used by a clean coal facility shall have high volatile
bituminous rank and greater than 1.7 pounds of sulfur per
million btu content, unless the clean coal facility does not
use gasification technology and was operating as a
conventional coal-fired electric generating facility on June
1, 2009 (the effective date of Public Act 95-1027).
"Clean coal SNG brownfield facility" means a facility that
(1) has commenced construction by July 1, 2015 on an urban
brownfield site in a municipality with at least 1,000,000
residents; (2) uses a gasification process to produce
substitute natural gas; (3) uses coal as at least 50% of the
total feedstock over the term of any sourcing agreement with a
utility and the remainder of the feedstock may be either
petroleum coke or coal, with all such coal having a high

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bituminous rank and greater than 1.7 pounds of sulfur per
million Btu content unless the facility reasonably determines
that it is necessary to use additional petroleum coke to
deliver additional consumer savings, in which case the
facility shall use coal for at least 35% of the total feedstock
over the term of any sourcing agreement; and (4) captures and
sequesters at least 85% of the total carbon dioxide emissions
that the facility would otherwise emit.
"Clean coal SNG facility" means a facility that uses a
gasification process to produce substitute natural gas, that
sequesters at least 90% of the total carbon dioxide emissions
that the facility would otherwise emit, that uses at least 90%
coal as a feedstock, with all such coal having a high
bituminous rank and greater than 1.7 pounds of sulfur per
million btu content, and that has a valid and effective permit
to construct emission sources and air pollution control
equipment and approval with respect to the federal regulations
for Prevention of Significant Deterioration of Air Quality
(PSD) for the plant pursuant to the federal Clean Air Act;
provided, however, a clean coal SNG brownfield facility shall
not be a clean coal SNG facility.
"Commission" means the Illinois Commerce Commission.
"Community renewable generation project" means an electric
generating facility that:
(1) is powered by wind, solar thermal energy,
photovoltaic cells or panels, biodiesel, crops and

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untreated and unadulterated organic waste biomass, tree
waste, and hydropower that does not involve new
construction or significant expansion of hydropower dams;
(2) is interconnected at the distribution system level
of an electric utility as defined in this Section, a
municipal utility as defined in this Section that owns or
operates electric distribution facilities, a public
utility as defined in Section 3-105 of the Public
Utilities Act, or an electric cooperative, as defined in
Section 3-119 of the Public Utilities Act;
(3) credits the value of electricity generated by the
facility to the subscribers of the facility; and
(4) is limited in nameplate capacity to less than or
equal to 5,000 2,000 kilowatts.
"Costs incurred in connection with the development and
construction of a facility" means:
(1) the cost of acquisition of all real property,
fixtures, and improvements in connection therewith and
equipment, personal property, and other property, rights,
and easements acquired that are deemed necessary for the
operation and maintenance of the facility;
(2) financing costs with respect to bonds, notes, and
other evidences of indebtedness of the Agency;
(3) all origination, commitment, utilization,
facility, placement, underwriting, syndication, credit
enhancement, and rating agency fees;

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(4) engineering, design, procurement, consulting,
legal, accounting, title insurance, survey, appraisal,
escrow, trustee, collateral agency, interest rate hedging,
interest rate swap, capitalized interest, contingency, as
required by lenders, and other financing costs, and other
expenses for professional services; and
(5) the costs of plans, specifications, site study and
investigation, installation, surveys, other Agency costs
and estimates of costs, and other expenses necessary or
incidental to determining the feasibility of any project,
together with such other expenses as may be necessary or
incidental to the financing, insuring, acquisition, and
construction of a specific project and starting up,
commissioning, and placing that project in operation.
"Delivery services" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Delivery year" means the consecutive 12-month period
beginning June 1 of a given year and ending May 31 of the
following year.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of the Illinois Power
Agency.
"Demand-response" means measures that decrease peak
electricity demand or shift demand from peak to off-peak
periods.

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"Distributed renewable energy generation device" means a
device that is:
(1) powered by wind, solar thermal energy,
photovoltaic cells or panels, biodiesel, crops and
untreated and unadulterated organic waste biomass, tree
waste, and hydropower that does not involve new
construction or significant expansion of hydropower dams;
(2) interconnected at the distribution system level of
either an electric utility as defined in this Section, a
municipal utility as defined in this Section that owns or
operates electric distribution facilities, or a rural
electric cooperative as defined in Section 3-119 of the
Public Utilities Act;
(3) located on the customer side of the customer's
electric meter and is primarily used to offset that
customer's electricity load; and
(4) limited in nameplate capacity to less than or
equal to 2,000 kilowatts.
"Energy efficiency" means measures that reduce the amount
of electricity or natural gas consumed in order to achieve a
given end use. "Energy efficiency" includes voltage
optimization measures that optimize the voltage at points on
the electric distribution voltage system and thereby reduce
electricity consumption by electric customers' end use
devices. "Energy efficiency" also includes measures that
reduce the total Btus of electricity, natural gas, and other

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fuels needed to meet the end use or uses.
"Electric utility" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Facility" means an electric generating unit or a
co-generating unit that produces electricity along with
related equipment necessary to connect the facility to an
electric transmission or distribution system.
"Governmental aggregator" means one or more units of local
government that individually or collectively procure
electricity to serve residential retail electrical loads
located within its or their jurisdiction.
"Local government" means a unit of local government as
defined in Section 1 of Article VII of the Illinois
Constitution.
"Municipality" means a city, village, or incorporated
town.
"Municipal utility" means a public utility owned and
operated by any subdivision or municipal corporation of this
State.
"Nameplate capacity" means the aggregate inverter
nameplate capacity in kilowatts AC.
"Person" means any natural person, firm, partnership,
corporation, either domestic or foreign, company, association,
limited liability company, joint stock company, or association
and includes any trustee, receiver, assignee, or personal
representative thereof.

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"Project" means the planning, bidding, and construction of
a facility.
"Public utility" has the same definition as found in
Section 3-105 of the Public Utilities Act.
"Real property" means any interest in land together with
all structures, fixtures, and improvements thereon, including
lands under water and riparian rights, any easements,
covenants, licenses, leases, rights-of-way, uses, and other
interests, together with any liens, judgments, mortgages, or
other claims or security interests related to real property.
"Renewable energy credit" means a tradable credit that
represents the environmental attributes of one megawatt hour
of energy produced from a renewable energy resource.
"Renewable energy resources" includes energy and its
associated renewable energy credit or renewable energy credits
from wind, solar thermal energy, photovoltaic cells and
panels, biodiesel, anaerobic digestion, crops and untreated
and unadulterated organic waste biomass, tree waste, and
hydropower that does not involve new construction or
significant expansion of hydropower dams. For purposes of this
Act, landfill gas produced in the State is considered a
renewable energy resource. "Renewable energy resources" does
not include the incineration or burning of tires, garbage,
general household, institutional, and commercial waste,
industrial lunchroom or office waste, landscape waste other
than tree waste, railroad crossties, utility poles, or

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construction or demolition debris, other than untreated and
unadulterated waste wood.
"Retail customer" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Revenue bond" means any bond, note, or other evidence of
indebtedness issued by the Authority, the principal and
interest of which is payable solely from revenues or income
derived from any project or activity of the Agency.
"Sequester" means permanent storage of carbon dioxide by
injecting it into a saline aquifer, a depleted gas reservoir,
or an oil reservoir, directly or through an enhanced oil
recovery process that may involve intermediate storage,
regardless of whether these activities are conducted by a
clean coal facility, a clean coal SNG facility, a clean coal
SNG brownfield facility, or a party with which a clean coal
facility, clean coal SNG facility, or clean coal SNG
brownfield facility has contracted for such purposes.
"Service area" has the same definition as found in Section
16-102 of the Public Utilities Act.
"Sourcing agreement" means (i) in the case of an electric
utility, an agreement between the owner of a clean coal
facility and such electric utility, which agreement shall have
terms and conditions meeting the requirements of paragraph (3)
of subsection (d) of Section 1-75, (ii) in the case of an
alternative retail electric supplier, an agreement between the
owner of a clean coal facility and such alternative retail

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electric supplier, which agreement shall have terms and
conditions meeting the requirements of Section 16-115(d)(5) of
the Public Utilities Act, and (iii) in case of a gas utility,
an agreement between the owner of a clean coal SNG brownfield
facility and the gas utility, which agreement shall have the
terms and conditions meeting the requirements of subsection
(h-1) of Section 9-220 of the Public Utilities Act.
"Subscriber" means a person who (i) takes delivery service
from an electric utility, and (ii) has a subscription of no
less than 200 watts to a community renewable generation
project that is located in the electric utility's service
area. No subscriber's subscriptions may total more than 40% of
the nameplate capacity of an individual community renewable
generation project. Entities that are affiliated by virtue of
a common parent shall not represent multiple subscriptions
that total more than 40% of the nameplate capacity of an
individual community renewable generation project.
"Subscription" means an interest in a community renewable
generation project expressed in kilowatts, which is sized
primarily to offset part or all of the subscriber's
electricity usage.
"Substitute natural gas" or "SNG" means a gas manufactured
by gasification of hydrocarbon feedstock, which is
substantially interchangeable in use and distribution with
conventional natural gas.
"Total resource cost test" or "TRC test" means a standard

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that is met if, for an investment in energy efficiency or
demand-response measures, the benefit-cost ratio is greater
than one. The benefit-cost ratio is the ratio of the net
present value of the total benefits of the program to the net
present value of the total costs as calculated over the
lifetime of the measures. A total resource cost test compares
the sum of avoided electric utility costs, representing the
benefits that accrue to the system and the participant in the
delivery of those efficiency measures and including avoided
costs associated with reduced use of natural gas or other
fuels, avoided costs associated with reduced water
consumption, and avoided costs associated with reduced
operation and maintenance costs, as well as other quantifiable
societal benefits, to the sum of all incremental costs of
end-use measures that are implemented due to the program
(including both utility and participant contributions), plus
costs to administer, deliver, and evaluate each demand-side
program, to quantify the net savings obtained by substituting
the demand-side program for supply resources. In calculating
avoided costs of power and energy that an electric utility
would otherwise have had to acquire, reasonable estimates
shall be included of financial costs likely to be imposed by
future regulations and legislation on emissions of greenhouse
gases. In discounting future societal costs and benefits for
the purpose of calculating net present values, a societal
discount rate based on actual, long-term Treasury bond yields

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should be used. Notwithstanding anything to the contrary, the
TRC test shall not include or take into account a calculation
of market price suppression effects or demand reduction
induced price effects.
"Utility-scale solar project" means an electric generating
facility that:
(1) generates electricity using photovoltaic cells;
and
(2) has a nameplate capacity that is greater than
2,000 kilowatts.
"Utility-scale wind project" means an electric generating
facility that:
(1) generates electricity using wind; and
(2) has a nameplate capacity that is greater than
2,000 kilowatts.
"Zero emission credit" means a tradable credit that
represents the environmental attributes of one megawatt hour
of energy produced from a zero emission facility.
"Zero emission facility" means a facility that: (1) is
fueled by nuclear power; and (2) is interconnected with PJM
Interconnection, LLC or the Midcontinent Independent System
Operator, Inc., or their successors.
(Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17.)
(20 ILCS 3855/1-20)
Sec. 1-20. General powers and duties of the Agency.

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(a) The Agency is authorized to do each of the following:
(1) Develop electricity procurement plans 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 electric utilities that on December
31, 2005 provided electric service to at least 100,000
customers in Illinois and for small multi-jurisdictional
electric utilities that (A) on December 31, 2005 served
less than 100,000 customers in Illinois and (B) request a
procurement plan for their Illinois jurisdictional load.
Except as provided in paragraph (1.5) of this subsection
(a), the electricity procurement plans shall be updated on
an annual basis and shall include electricity generated
from renewable resources sufficient to achieve the
standards specified in this Act. Beginning with the
delivery year commencing June 1, 2017, develop procurement
plans to include zero emission credits generated from zero
emission facilities sufficient to achieve the standards
specified in this Act. Beginning with the procurement for
the delivery year commencing June 1, 2022, the Agency
shall for each year develop a plan, as part of its
procurement plan, to conduct a procurement of capacity
from qualified resources needed to meet capacity
requirements of the retail customers of electric utilities
that serve more than 3,000,000 retail customers and are

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located in the PJM Interconnection, subject to the open
access tariff and manuals of PJM Interconnection and
approved by the Federal Energy Regulatory Commission. The
capacity procurement plan shall be updated annually and
shall include electricity generated from renewable
resources sufficient to achieve the renewable portfolio
standards as specified in this Act.
(1.5) Develop a long-term renewable resources
procurement plan in accordance with subsection (c) of
Section 1-75 of this Act for renewable energy credits in
amounts sufficient to achieve the standards specified in
this Act for delivery years commencing June 1, 2017 and
for the programs and renewable energy credits specified in
Section 1-56 of this Act. Electricity procurement plans
for delivery years commencing after May 31, 2017, shall
not include procurement of renewable energy resources.
(2) Conduct competitive procurement processes to
procure the supply resources identified in the electricity
procurement plan, pursuant to Section 16-111.5 of the
Public Utilities Act, and, for the delivery year
commencing June 1, 2017, conduct procurement processes to
procure zero emission credits from zero emission
facilities, under subsection (d-5) of Section 1-75 of this
Act.
(2.5) Beginning with the procurement for the 2017
delivery year, conduct competitive procurement processes

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and implement programs to procure renewable energy credits
identified in the long-term renewable resources
procurement plan developed and approved under subsection
(c) of Section 1-75 of this Act and Section 16-111.5 of the
Public Utilities Act.
(3) Develop electric generation and co-generation
facilities that use indigenous coal or renewable
resources, or both, financed with bonds issued by the
Illinois Finance Authority.
(4) Supply electricity from the Agency's facilities at
cost to one or more of the following: municipal electric
systems, governmental aggregators, or rural electric
cooperatives in Illinois.
(b) Except as otherwise limited by this Act, the Agency
has all of the powers necessary or convenient to carry out the
purposes and provisions of this Act, including without
limitation, each of the following:
(1) To have a corporate seal, and to alter that seal at
pleasure, and to use it by causing it or a facsimile to be
affixed or impressed or reproduced in any other manner.
(2) To use the services of the Illinois Finance
Authority necessary to carry out the Agency's purposes.
(3) To negotiate and enter into loan agreements and
other agreements with the Illinois Finance Authority.
(4) To obtain and employ personnel and hire
consultants that are necessary to fulfill the Agency's

HB0804 Engrossed - 268 - LRB102 10881 SPS 16211 b
purposes, and to make expenditures for that purpose within
the appropriations for that purpose.
(5) To purchase, receive, take by grant, gift, devise,
bequest, or otherwise, lease, or otherwise acquire, own,
hold, improve, employ, use, and otherwise deal in and
with, real or personal property whether tangible or
intangible, or any interest therein, within the State.
(6) To acquire real or personal property, whether
tangible or intangible, including without limitation
property rights, interests in property, franchises,
obligations, contracts, and debt and equity securities,
and to do so by the exercise of the power of eminent domain
in accordance with Section 1-21; except that any real
property acquired by the exercise of the power of eminent
domain must be located within the State.
(7) To sell, convey, lease, exchange, transfer,
abandon, or otherwise dispose of, or mortgage, pledge, or
create a security interest in, any of its assets,
properties, or any interest therein, wherever situated.
(8) To purchase, take, receive, subscribe for, or
otherwise acquire, hold, make a tender offer for, vote,
employ, sell, lend, lease, exchange, transfer, or
otherwise dispose of, mortgage, pledge, or grant a
security interest in, use, and otherwise deal in and with,
bonds and other obligations, shares, or other securities
(or interests therein) issued by others, whether engaged

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in a similar or different business or activity.
(9) To make and execute agreements, contracts, and
other instruments necessary or convenient in the exercise
of the powers and functions of the Agency under this Act,
including contracts with any person, including personal
service contracts, or with any local government, State
agency, or other entity; and all State agencies and all
local governments are authorized to enter into and do all
things necessary to perform any such agreement, contract,
or other instrument with the Agency. No such agreement,
contract, or other instrument shall exceed 40 years.
(10) To lend money, invest and reinvest its funds in
accordance with the Public Funds Investment Act, and take
and hold real and personal property as security for the
payment of funds loaned or invested.
(11) To borrow money at such rate or rates of interest
as the Agency may determine, issue its notes, bonds, or
other obligations to evidence that indebtedness, and
secure any of its obligations by mortgage or pledge of its
real or personal property, machinery, equipment,
structures, fixtures, inventories, revenues, grants, and
other funds as provided or any interest therein, wherever
situated.
(12) To enter into agreements with the Illinois
Finance Authority to issue bonds whether or not the income
therefrom is exempt from federal taxation.

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(13) To procure insurance against any loss in
connection with its properties or operations in such
amount or amounts and from such insurers, including the
federal government, as it may deem necessary or desirable,
and to pay any premiums therefor.
(14) To negotiate and enter into agreements with
trustees or receivers appointed by United States
bankruptcy courts or federal district courts or in other
proceedings involving adjustment of debts and authorize
proceedings involving adjustment of debts and authorize
legal counsel for the Agency to appear in any such
proceedings.
(15) To file a petition under Chapter 9 of Title 11 of
the United States Bankruptcy Code or take other similar
action for the adjustment of its debts.
(16) To enter into management agreements for the
operation of any of the property or facilities owned by
the Agency.
(17) To enter into an agreement to transfer and to
transfer any land, facilities, fixtures, or equipment of
the Agency to one or more municipal electric systems,
governmental aggregators, or rural electric agencies or
cooperatives, for such consideration and upon such terms
as the Agency may determine to be in the best interest of
the residents citizens of Illinois.
(18) To enter upon any lands and within any building

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whenever in its judgment it may be necessary for the
purpose of making surveys and examinations to accomplish
any purpose authorized by this Act.
(19) To maintain an office or offices at such place or
places in the State as it may determine.
(20) To request information, and to make any inquiry,
investigation, survey, or study that the Agency may deem
necessary to enable it effectively to carry out the
provisions of this Act.
(21) To accept and expend appropriations.
(22) To engage in any activity or operation that is
incidental to and in furtherance of efficient operation to
accomplish the Agency's purposes, including hiring
employees that the Director deems essential for the
operations of the Agency.
(23) To adopt, revise, amend, and repeal rules with
respect to its operations, properties, and facilities as
may be necessary or convenient to carry out the purposes
of this Act, subject to the provisions of the Illinois
Administrative Procedure Act and Sections 1-22 and 1-35 of
this Act.
(24) To establish and collect charges and fees as
described in this Act.
(25) To conduct competitive gasification feedstock
procurement processes to procure the feedstocks for the
clean coal SNG brownfield facility in accordance with the

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requirements of Section 1-78 of this Act.
(26) To review, revise, and approve sourcing
agreements and mediate and resolve disputes between gas
utilities and the clean coal SNG brownfield facility
pursuant to subsection (h-1) of Section 9-220 of the
Public Utilities Act.
(27) To request, review and accept proposals, execute
contracts, purchase renewable energy credits and otherwise
dedicate funds from the Illinois Power Agency Renewable
Energy Resources Fund to create and carry out the
objectives of the Illinois Solar for All program in
accordance with Section 1-56 of this Act.
(c) In conducting the procurement of electricity,
capacity, or other products, the Agency shall not procure any
products or services from persons or organizations that are in
violation of the Displaced Energy Workers Bill of Rights, as
provided under the Energy Community Reinvestment Act, at the
time of the procurement event.
(Source: P.A. 99-906, eff. 6-1-17.)
(20 ILCS 3855/1-56)
Sec. 1-56. Illinois Power Agency Renewable Energy
Resources Fund; Illinois Solar for All Program.
(a) The Illinois Power Agency Renewable Energy Resources
Fund is created as a special fund in the State treasury.
(b) The Illinois Power Agency Renewable Energy Resources

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Fund shall be administered by the Agency as described in this
subsection (b), provided that the changes to this subsection
(b) made by this amendatory Act of the 99th General Assembly
shall not interfere with existing contracts under this
Section.
(1) The Illinois Power Agency Renewable Energy
Resources Fund shall be used to purchase renewable energy
credits according to any approved procurement plan
developed by the Agency prior to June 1, 2017.
(2) The Illinois Power Agency Renewable Energy
Resources Fund shall also be used to create the Illinois
Solar for All Program, which shall include incentives for
low-income distributed generation and community solar
projects, and other associated approved expenditures. The
objectives of the Illinois Solar for All Program are to
bring photovoltaics to low-income communities in this
State in a manner that maximizes the development of new
photovoltaic generating facilities, to create a long-term,
low-income solar marketplace throughout this State, to
integrate, through interaction with stakeholders, with
existing energy efficiency initiatives, and to minimize
administrative costs. The Agency shall strive to ensure
that renewable energy credits procured through the
Illinois Solar for All Program and each of its subprograms
are purchased from projects across the breadth of
low-income and environmental justice communities in

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Illinois, including both urban and rural communities, and
are neither concentrated in a few communities nor
excluding particular low-income or environmental justice
communities. The Agency shall include a description of its
proposed approach to the design, administration,
implementation and evaluation of the Illinois Solar for
All Program, as part of the long-term renewable resources
procurement plan authorized by subsection (c) of Section
1-75 of this Act, and the program shall be designed to grow
the low-income solar market. The Agency or utility, as
applicable, shall purchase renewable energy credits from
the (i) photovoltaic distributed renewable energy
generation projects and (ii) community solar projects that
are procured under procurement processes authorized by the
long-term renewable resources procurement plans approved
by the Commission.
The Illinois Solar for All Program shall include the
program offerings described in subparagraphs (A) through
(E) (D) of this paragraph (2), which the Agency shall
implement through contracts with third-party providers
and, subject to appropriation, pay the approximate amounts
identified using monies available in the Illinois Power
Agency Renewable Energy Resources Fund. Each contract that
provides for the installation of solar facilities shall
provide that the solar facilities will produce energy and
economic benefits, at a level determined by the Agency to

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be reasonable, for the participating low income customers.
The monies available in the Illinois Power Agency
Renewable Energy Resources Fund and not otherwise
committed to contracts executed under subsection (i) of
this Section shall be allocated among the programs
described in this paragraph (2), as follows: 22.5% of
these funds shall be allocated to programs described in
subparagraphs subparagraph (A) and (E) of this paragraph
(2), 37.5% of these funds shall be allocated to programs
described in subparagraph (B) of this paragraph (2), 15%
of these funds shall be allocated to programs described in
subparagraph (C) of this paragraph (2), and 25% of these
funds, but in no event more than $50,000,000, shall be
allocated to programs described in subparagraph (D) of
this paragraph (2). The allocation of funds among
subparagraphs (A), (B), or (C), and (E) of this paragraph
(2) may be changed if the Agency or administrator, through
delegated authority, determines incentives in subparagraph
subparagraphs (A), (B), or (C), or (E) of this paragraph
(2) have not been adequately subscribed to fully utilize
the Illinois Power Agency Renewable Energy Resources Fund.
The determination of reallocation shall include
consideration of input obtained input through a
stakeholder process. The program offerings described in
subparagraphs (A) through (E) (D) of this paragraph (2)
shall also be implemented through contracts funded from

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such additional amounts as are allocated to one or more of
the programs in the long-term renewable resources
procurement plans as specified in subsection (c) of
Section 1-75 of this Act and subparagraph (O) of paragraph
(1) of such subsection (c).
Contracts that will be paid with funds in the Illinois
Power Agency Renewable Energy Resources Fund shall be
executed by the Agency. Contracts that will be paid with
funds collected by an electric utility shall be executed
by the electric utility.
Contracts under the Illinois Solar for All Program
shall include an approach, as set forth in the long-term
renewable resources procurement plans, to ensure the
wholesale market value of the energy is credited to
participating low-income customers or organizations and to
ensure tangible economic benefits flow directly to program
participants, except in the case of low-income
multi-family housing where the low-income customer does
not directly pay for energy. Priority shall be given to
projects that demonstrate meaningful involvement of
low-income community members in designing the initial
proposals. Acceptable proposals to implement projects must
demonstrate the applicant's ability to conduct initial
community outreach, education, and recruitment of
low-income participants in the community. Projects must
include job training opportunities if available, and shall

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endeavor to coordinate with the job training programs
described in paragraph (1) of subsection (a) of Section
16-108.12 of the Public Utilities Act.
The Agency shall make every effort to ensure that
small and emerging businesses, particularly those located
in low-income and environmental justice communities are
able to participate in the Illinois Solar for All Program.
These efforts may include, but shall not be limited to,
proactive support from the program administrator,
different or preferred access to subprograms and
administrator-identified customers or grassroots
education provider-identified customers, and different
incentive levels. The Agency shall report on progress and
barriers to participation of small and emerging businesses
in the Illinois Solar for All Program at least once a year.
The report shall be made available on the Agency's website
and, in years when the Agency is updating its long-term
renewable resources procurement plan, included in that
plan.
(A) Low-income single-family and small multifamily
solar distributed generation incentive. This program
will provide incentives to low-income customers,
either directly or through solar providers, to
increase the participation of low-income households in
photovoltaic on-site distributed generation at
residential buildings containing one to 4 units.

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Companies participating in this program that install
solar panels shall commit to hiring job trainees for a
portion of their low-income installations, and an
administrator shall facilitate partnering the
companies that install solar panels with entities that
provide solar panel installation job training. It is a
goal of this program that a minimum of 25% of the
incentives for this program be allocated to projects
located within environmental justice communities. The
Agency shall reserve a portion of this program for
projects that promote energy sovereignty through
ownership of projects by low-income households,
not-for-profit organizations providing services to
low-income households, affordable housing owners, or
community-based limited liability companies providing
services to low-income households. To count as
promoting energy sovereignty, 49% of the ownership
interest of the project must be held by low-income
households, not-for-profit organizations providing
direct services to low-income households, affordable
housing owners, or community-based limited liability
companies providing services to low-income households,
by no later than 6 years after the device is
interconnected at the distribution system level of the
utility and energized. Incentives for projects that
promote energy sovereignty may be higher than

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incentives for equivalent projects that do not promote
energy sovereignty under this same program. Contracts
entered into under this paragraph may be entered into
with an entity that will develop and administer the
program and shall also include contracts for renewable
energy credits from the photovoltaic distributed
generation that is the subject of the program, as set
forth in the long-term renewable resources procurement
plan.
(B) Low-Income Community Solar Project Initiative.
Incentives shall be offered to low-income customers,
either directly or through developers, to increase the
participation of low-income subscribers of community
solar projects. The developer of each project shall
identify its partnership with community stakeholders
regarding the location, development, and participation
in the project, provided that nothing shall preclude a
project from including an anchor tenant that does not
qualify as low-income. Incentives should also be
offered to community solar projects that are 100%
low-income subscriber owned, which includes low-income
households, not-for-profit organizations, and
affordable housing owners. Companies participating in
this program that develop or install solar projects
shall commit to hiring job trainees for a portion of
their low-income installations, and an administrator

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shall facilitate partnering the companies that install
solar projects with entities that provide solar
installation and related job training. It is a goal of
this program that a minimum of 25% of the incentives
for this program be allocated to community
photovoltaic projects in environmental justice
communities. The Agency shall reserve a portion of
this program for projects that promote energy
sovereignty through ownership of projects by
low-income households, not-for-profit organizations
providing services to low-income households,
affordable housing owners, or community-based limited
liability companies providing services to low-income
households. To count as promoting energy sovereignty,
49% of the ownership interest of the project must be
held by low-income subscribers, not-for-profit
organizations providing direct services to low-income
households, affordable housing owners, or
community-based limited liability companies providing
services to low-income households, by no later than 6
years after the device is interconnected at the
distribution system level of the utility and
energized. Incentives for projects that promote energy
sovereignty may be higher than incentives for
equivalent projects that do not promote energy
sovereignty under this same program. Contracts entered

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into under this paragraph may be entered into with
developers and shall also include contracts for
renewable energy credits related to the program.
(C) Incentives for non-profits and public
facilities. Under this program funds shall be used to
support on-site photovoltaic distributed renewable
energy generation devices to serve the load associated
with not-for-profit customers and to support
photovoltaic distributed renewable energy generation
that uses photovoltaic technology to serve the load
associated with public sector customers taking service
at public buildings. Companies participating in this
program that develop or install solar projects shall
commit to hiring job trainees for a portion of their
low-income installations, and an administrator shall
facilitate partnering the companies that install solar
projects with entities that provide solar installation
and related job training. It is a goal of this program
that at least 25% of the incentives for this program be
allocated to projects located in environmental justice
communities. Contracts entered into under this
paragraph may be entered into with an entity that will
develop and administer the program or with developers
and shall also include contracts for renewable energy
credits related to the program.
(D) Low-Income Community Solar Pilot Projects.

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Under this program, persons, including, but not
limited to, electric utilities, shall propose pilot
community solar projects. Community solar projects
proposed under this subparagraph (D) may exceed 2,000
kilowatts in nameplate capacity, but the amount paid
per project under this program may not exceed
$20,000,000. Pilot projects must result in economic
benefits for the members of the community in which the
project will be located. The proposed pilot project
must include a partnership with at least one
community-based organization. Approved pilot projects
shall be competitively bid by the Agency, subject to
fair and equitable guidelines developed by the Agency.
Funding available under this subparagraph (D) may not
be distributed solely to a utility, and at least some
funds under this subparagraph (D) must include a
project partnership that includes community ownership
by the project subscribers. Contracts entered into
under this paragraph may be entered into with an
entity that will develop and administer the program or
with developers and shall also include contracts for
renewable energy credits related to the program. A
project proposed by a utility that is implemented
under this subparagraph (D) shall not be included in
the utility's rate base ratebase.
(E) Low-income large multifamily solar incentive.

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This program shall provide incentives to low-income
customers, either directly or through solar providers,
to increase the participation of low-income households
in photovoltaic on-site distributed generation at
residential buildings with 5 or more units. Companies
participating in this program that develop or install
solar projects shall commit to hiring job trainees for
a portion of their low-income installations, and an
administrator shall facilitate partnering the
companies that install solar projects with entities
that provide solar installation and related job
training. It is a goal of this program that a minimum
of 25% of the incentives for this program be allocated
to projects located within environmental justice
communities. The Agency shall reserve a portion of
this program for projects that promote energy
sovereignty through ownership of projects by
low-income households, not-for-profit organizations
providing services to low-income households,
affordable housing owners, or community-based limited
liability companies providing services to low-income
households. To count as promoting energy sovereignty,
49% of the ownership interest of the project must be
held by low-income households, not-for-profit
organizations providing direct services to low-income
households, affordable housing owners, or

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community-based limited liability companies providing
services to low-income households, by no later than 6
years after the device is interconnected at the
distribution system level of the utility and
energized. Incentives for projects that promote energy
sovereignty may be higher than incentives for
equivalent projects that do not promote energy
sovereignty under this same program. Contracts entered
into under this paragraph may be entered into with an
entity that will develop and administer the program
and shall include contracts for renewable energy
credits from the photovoltaic distributed generation
that is the subject of the program, as set forth in the
long-term renewable resources procurement plan.
The requirement that a qualified person, as defined in
paragraph (1) of subsection (i) of this Section, install
photovoltaic devices does not apply to the Illinois Solar
for All Program described in this subsection (b).
(3) Costs associated with the Illinois Solar for All
Program and its components described in paragraph (2) of
this subsection (b), including, but not limited to, costs
associated with procuring experts, consultants, and the
program administrator referenced in this subsection (b)
and related incremental costs, costs related to income
verification and facilitating customer participation in
the program, and costs related to the evaluation of the

HB0804 Engrossed - 285 - LRB102 10881 SPS 16211 b
Illinois Solar for All Program, may be paid for using
monies in the Illinois Power Agency Renewable Energy
Resources Fund, but the Agency or program administrator
shall strive to minimize costs in the implementation of
the program. The Agency shall purchase renewable energy
credits from generation that is the subject of a contract
under subparagraphs (A) through (E) (D) of this paragraph
(2) of this subsection (b), and may pay for such renewable
energy credits through an upfront payment per installed
kilowatt of nameplate capacity paid once the device is
interconnected at the distribution system level of the
utility and is energized. The payment shall be in exchange
for an assignment of all renewable energy credits
generated by the system during the first 15 years of
operation and shall be structured to overcome barriers to
participation in the solar market by the low-income
community. The incentives provided for in this Section may
be implemented through the pricing of renewable energy
credits where the prices paid for the credits are higher
than the prices from programs offered under subsection (c)
of Section 1-75 of this Act to account for the incentives.
The Agency shall ensure collaboration with community
agencies, and allocate up to 5% of the funds available
under the Illinois Solar for All Program to
community-based groups to assist in grassroots education
efforts related to the Illinois Solar for All Program. The

HB0804 Engrossed - 286 - LRB102 10881 SPS 16211 b
Agency shall retire any renewable energy credits purchased
from this program and the credits shall count towards the
obligation under subsection (c) of Section 1-75 of this
Act for the electric utility to which the project is
interconnected. The Agency may combine the funding for the
Adjustable Block Program established in subparagraph (K)
of paragraph (1) of subsection (c) of Section 1-75 and the
Illinois Solar for All Program to purchase renewable
energy credits from new photovoltaic projects that would
be eligible for either program so long as: the annual
ratepayer funds collected to purchase renewable resources
pursuant to subsection (c) of Section 1-75 is at least
double the amount collected in the 2019-2020 delivery
year, no more than 20% of any individual block within the
Adjustable Block Program is allocated to Solar for
All-eligible projects, and the funding sources for both
programs are the same for projects so funded. Any
renewable energy credits purchased from this program in
combination with the Adjustable Block Program shall count
toward the obligation for new photovoltaic projects under
subparagraph (C) of paragraph (1) of subsection (c) of
Section 1-75 of this Act. Any photovoltaic projects
selected for this program in combination with the
Adjustable Block Program are subject to the requirements
of the Illinois Solar for All Program and may receive
Illinois Solar for All Program pricing, with the Illinois

HB0804 Engrossed - 287 - LRB102 10881 SPS 16211 b
Solar for All Program budget covering the difference
between the renewable energy credit price from the
currently open block of the Adjustable Block Program and
the Solar for All renewable energy credit price. Illinois
Solar for All subprograms providing funding for
installation of distributed renewable energy generation
devices shall use funding in this manner from Adjustable
Block Program distributed renewable energy generation
device blocks. The Illinois Solar for All Low-Income
Community Solar subprogram shall use funding in this
manner from the Adjustable Block Program community
renewable generation project blocks, if such blocks are
legally authorized. If no Adjustable Block Program
community renewable generation project block is currently
legally authorized and if a competitively procured
Community Solar Program is legally authorized under
Section 1-75 of this Act, then (i) a portion of the
utility-held renewable resources budget allocated by the
Agency to such competitive Community Solar Program each
year shall be reserved for the Solar for All Low-Income
Community Solar subprogram as if such budget came from an
Adjustable Block Program block for purposes of this
paragraph (3) and (ii) the average renewable energy credit
price of Community Solar Program selected projects from
the prior delivery year (or a shorter period, if a full
delivery year of the Community Solar Program has not been

HB0804 Engrossed - 288 - LRB102 10881 SPS 16211 b
completed) shall be used for allocating funding to the
Solar for All Low-Income Community Solar subprogram in
lieu of the Adjustable Block Program renewable energy
credit block price mentioned earlier in this paragraph
(3). The Agency shall try to manage program capacities and
budgets to make the fullest use of this option to
accommodate Solar for All project applications.
(4) The Agency shall, consistent with the requirements
of this subsection (b), propose the Illinois Solar for All
Program terms, conditions, and requirements, including the
prices to be paid for renewable energy credits, and which
prices may be determined through a formula, through the
development, review, and approval of the Agency's
long-term renewable resources procurement plan described
in subsection (c) of Section 1-75 of this Act and Section
16-111.5 of the Public Utilities Act. In the course of the
Commission proceeding initiated to review and approve the
plan, including the Illinois Solar for All Program
proposed by the Agency, a party may propose an additional
low-income solar or solar incentive program, or
modifications to the programs proposed by the Agency, and
the Commission may approve an additional program, or
modifications to the Agency's proposed program, if the
additional or modified program more effectively maximizes
the benefits to low-income customers after taking into
account all relevant factors, including, but not limited

HB0804 Engrossed - 289 - LRB102 10881 SPS 16211 b
to, the extent to which a competitive market for
low-income solar has developed. Following the Commission's
approval of the Illinois Solar for All Program, the Agency
or a party may propose adjustments to the program terms,
conditions, and requirements, including the price offered
to new systems, to ensure the long-term viability and
success of the program. The Commission shall review and
approve any modifications to the program through the plan
revision process described in Section 16-111.5 of the
Public Utilities Act.
(5) The Agency shall issue a request for
qualifications for a third-party program administrator or
administrators to administer all or a portion of the
Illinois Solar for All Program. The third-party program
administrator shall be chosen through a competitive bid
process based on selection criteria and requirements
developed by the Agency, including, but not limited to,
experience in administering low-income energy programs and
overseeing statewide clean energy or energy efficiency
services. If the Agency retains a program administrator or
administrators to implement all or a portion of the
Illinois Solar for All Program, each administrator shall
periodically submit reports to the Agency and Commission
for each program that it administers, at appropriate
intervals to be identified by the Agency in its long-term
renewable resources procurement plan, provided that the

HB0804 Engrossed - 290 - LRB102 10881 SPS 16211 b
reporting interval is at least quarterly. Administration
of the Illinois Solar for All Program shall include
facilitation of the partnering of companies that develop
or install solar projects through this program or any
other Illinois program with graduates of Illinois-based
job training programs, particularly graduates who reside
in environmental justice communities.
(6) The long-term renewable resources procurement plan
shall also provide for an independent evaluation of the
Illinois Solar for All Program. At least every 2 years,
the Agency shall select an independent evaluator to review
and report on the Illinois Solar for All Program and the
performance of the third-party program administrator of
the Illinois Solar for All Program. The evaluation shall
be based on objective criteria developed through a public
stakeholder process. The process shall include feedback
and participation from Illinois Solar for All Program
stakeholders, including participants and organizations in
environmental justice and historically underserved
communities. The report shall include a summary of the
evaluation of the Illinois Solar for All Program based on
the stakeholder developed objective criteria. The report
shall include the number of projects installed; the total
installed capacity in kilowatts; the average cost per
kilowatt of installed capacity to the extent reasonably
obtainable by the Agency; the number of jobs or job

HB0804 Engrossed - 291 - LRB102 10881 SPS 16211 b
opportunities created; economic, social, and environmental
benefits created; and the total administrative costs
expended by the Agency and program administrator to
implement and evaluate the program. The report shall be
delivered to the Commission and posted on the Agency's
website, and shall be used, as needed, to revise the
Illinois Solar for All Program. The Commission shall also
consider the results of the evaluation as part of its
review of the long-term renewable resources procurement
plan under subsection (c) of Section 1-75 of this Act.
(7) If additional funding for the programs described
in this subsection (b) is available under subsection (k)
of Section 16-108 of the Public Utilities Act, then the
Agency shall submit a procurement plan to the Commission
no later than September 1, 2018, that proposes how the
Agency will procure programs on behalf of the applicable
utility. After notice and hearing, the Commission shall
approve, or approve with modification, the plan no later
than November 1, 2018.
(8) As part of the development and update of the
long-term renewable resources procurement plan authorized
by subsection (c) of Section 1-75 of this Act, the Agency
shall plan for: (A) actions to refer customers from the
Illinois Solar for All Program to electric and natural gas
income-qualified energy efficiency programs, and vice
versa, with the goal of increasing participation in both

HB0804 Engrossed - 292 - LRB102 10881 SPS 16211 b
of these programs; (B) effective procedures for data
sharing, as needed, to effectuate referrals between the
Illinois Solar for All Program and both electric and
natural gas income-qualified energy efficiency programs,
including sharing customer information directly with the
utilities, as needed and appropriate; and (C) efforts to
identify any existing deferred maintenance programs for
which prospective Solar for All customers may be eligible
and connect prospective customers for whom deferred
maintenance is or may be a barrier to solar installation
to those programs.
As used in this subsection (b), "low-income households"
means persons and families whose income does not exceed 80% of
area median income, adjusted for family size and revised every
5 years.
For the purposes of this subsection (b), the Agency shall
define "environmental justice community" based on
methodologies and findings established by the Illinois Power
Agency and its Administrator for the Illinois Solar for All
Program in its initial long-term renewable resources
procurement plan and updated by the Illinois Power Agency and
its Administrator for the Illinois Solar for All Program as
part of the long-term renewable resources procurement plan
update as part of long-term renewable resources procurement
plan development, to ensure, to the extent practicable,
compatibility with other agencies' definitions and may, for

HB0804 Engrossed - 293 - LRB102 10881 SPS 16211 b
guidance, look to the definitions used by federal, state, or
local governments.
(b-5) After the receipt of all payments required by
Section 16-115D of the Public Utilities Act, no additional
funds shall be deposited into the Illinois Power Agency
Renewable Energy Resources Fund unless directed by order of
the Commission.
(b-10) After the receipt of all payments required by
Section 16-115D of the Public Utilities Act and payment in
full of all contracts executed by the Agency under subsections
(b) and (i) of this Section, if the balance of the Illinois
Power Agency Renewable Energy Resources Fund is under $5,000,
then the Fund shall be inoperative and any remaining funds and
any funds submitted to the Fund after that date, shall be
transferred to the Supplemental Low-Income Energy Assistance
Fund for use in the Low-Income Home Energy Assistance Program,
as authorized by the Energy Assistance Act.
(c) (Blank).
(d) (Blank).
(e) All renewable energy credits procured using monies
from the Illinois Power Agency Renewable Energy Resources Fund
shall be permanently retired.
(f) The selection of one or more third-party program
managers or administrators, the selection of the independent
evaluator, and the procurement processes described in this
Section are exempt from the requirements of the Illinois

HB0804 Engrossed - 294 - LRB102 10881 SPS 16211 b
Procurement Code, under Section 20-10 of that Code.
(g) All disbursements from the Illinois Power Agency
Renewable Energy Resources 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 or
by the person or persons designated by the Director for that
purpose. The Comptroller is authorized to draw the warrant
upon vouchers so signed. The Treasurer shall accept all
warrants so signed and shall be released from liability for
all payments made on those warrants.
(h) The Illinois Power Agency Renewable Energy Resources
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 the transfer of any funds from this
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 Section.
(h-5) The Agency may assess fees to each bidder to recover
the costs incurred in connection with a procurement process
held under this Section. Fees collected from bidders shall be
deposited into the Renewable Energy Resources Fund.
(i) Supplemental procurement process.
(1) Within 90 days after the effective date of this
amendatory Act of the 98th General Assembly, the Agency
shall develop a one-time supplemental procurement plan

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limited to the procurement of renewable energy credits, if
available, from new or existing photovoltaics, including,
but not limited to, distributed photovoltaic generation.
Nothing in this subsection (i) requires procurement of
wind generation through the supplemental procurement.
Renewable energy credits procured from new
photovoltaics, including, but not limited to, distributed
photovoltaic generation, under this subsection (i) must be
procured from devices installed by a qualified person. In
its supplemental procurement plan, the Agency shall
establish contractually enforceable mechanisms for
ensuring that the installation of new photovoltaics is
performed by a qualified person.
For the purposes of this paragraph (1), "qualified
person" means a person who performs installations of
photovoltaics, including, but not limited to, distributed
photovoltaic generation, and who: (A) has completed an
apprenticeship as a journeyman electrician from a United
States Department of Labor registered electrical
apprenticeship and training program and received a
certification of satisfactory completion; or (B) does not
currently meet the criteria under clause (A) of this
paragraph (1), but is enrolled in a United States
Department of Labor registered electrical apprenticeship
program, provided that the person is directly supervised
by a person who meets the criteria under clause (A) of this

HB0804 Engrossed - 296 - LRB102 10881 SPS 16211 b
paragraph (1); or (C) has obtained one of the following
credentials in addition to attesting to satisfactory
completion of at least 5 years or 8,000 hours of
documented hands-on electrical experience: (i) a North
American Board of Certified Energy Practitioners (NABCEP)
Installer Certificate for Solar PV; (ii) an Underwriters
Laboratories (UL) PV Systems Installer Certificate; (iii)
an Electronics Technicians Association, International
(ETAI) Level 3 PV Installer Certificate; or (iv) an
Associate in Applied Science degree from an Illinois
Community College Board approved community college program
in renewable energy or a distributed generation
technology.
For the purposes of this paragraph (1), "directly
supervised" means that there is a qualified person who
meets the qualifications under clause (A) of this
paragraph (1) and who is available for supervision and
consultation regarding the work performed by persons under
clause (B) of this paragraph (1), including a final
inspection of the installation work that has been directly
supervised to ensure safety and conformity with applicable
codes.
For the purposes of this paragraph (1), "install"
means the major activities and actions required to
connect, in accordance with applicable building and
electrical codes, the conductors, connectors, and all

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associated fittings, devices, power outlets, or
apparatuses mounted at the premises that are directly
involved in delivering energy to the premises' electrical
wiring from the photovoltaics, including, but not limited
to, to distributed photovoltaic generation.
The renewable energy credits procured pursuant to the
supplemental procurement plan shall be procured using up
to $30,000,000 from the Illinois Power Agency Renewable
Energy Resources Fund. The Agency shall not plan to use
funds from the Illinois Power Agency Renewable Energy
Resources Fund in excess of the monies on deposit in such
fund or projected to be deposited into such fund. The
supplemental procurement plan shall ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable renewable energy resources (including credits)
at the lowest total cost over time, taking into account
any benefits of price stability.
To the extent available, 50% of the renewable energy
credits procured from distributed renewable energy
generation shall come from devices of less than 25
kilowatts in nameplate capacity. Procurement of renewable
energy credits from distributed renewable energy
generation devices shall be done through multi-year
contracts of no less than 5 years. The Agency shall create
credit requirements for counterparties. In order to
minimize the administrative burden on contracting

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entities, the Agency shall solicit the use of third
parties to aggregate distributed renewable energy. These
third parties shall enter into and administer contracts
with individual distributed renewable energy generation
device owners. An individual distributed renewable energy
generation device owner shall have the ability to measure
the output of his or her distributed renewable energy
generation device.
In developing the supplemental procurement plan, the
Agency shall hold at least one workshop open to the public
within 90 days after the effective date of this amendatory
Act of the 98th General Assembly and shall consider any
comments made by stakeholders or the public. Upon
development of the supplemental procurement plan within
this 90-day period, copies of the supplemental procurement
plan shall be posted and made publicly available on the
Agency's and Commission's websites. All interested parties
shall have 14 days following the date of posting to
provide comment to the Agency on the supplemental
procurement plan. All comments submitted to the Agency
shall be specific, supported by data or other detailed
analyses, and, if objecting to all or a portion of the
supplemental procurement plan, accompanied by specific
alternative wording or proposals. All comments shall be
posted on the Agency's and Commission's websites. Within
14 days following the end of the 14-day review period, the

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Agency shall revise the supplemental procurement plan as
necessary based on the comments received and file its
revised supplemental procurement plan with the Commission
for approval.
(2) Within 5 days after the filing of the supplemental
procurement plan at the Commission, any person objecting
to the supplemental procurement plan shall file an
objection with the Commission. Within 10 days after the
filing, the Commission shall determine whether a hearing
is necessary. The Commission shall enter its order
confirming or modifying the supplemental procurement plan
within 90 days after the filing of the supplemental
procurement plan by the Agency.
(3) The Commission shall approve the supplemental
procurement plan of renewable energy credits to be
procured from new or existing photovoltaics, including,
but not limited to, distributed photovoltaic generation,
if the Commission determines that it will ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable electric service in the form of renewable
energy credits at the lowest total cost over time, taking
into account any benefits of price stability.
(4) The supplemental procurement process under this
subsection (i) shall include each of the following
components:
(A) Procurement administrator. The Agency may

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retain a procurement administrator in the manner set
forth in item (2) of subsection (a) of Section 1-75 of
this Act to conduct the supplemental procurement or
may elect to use the same procurement administrator
administering the Agency's annual procurement under
Section 1-75.
(B) Procurement monitor. The procurement monitor
retained by the Commission pursuant to Section
16-111.5 of the Public Utilities Act shall:
(i) monitor interactions among the procurement
administrator and bidders and suppliers;
(ii) monitor and report to the Commission on
the progress of the supplemental procurement
process;
(iii) provide an independent confidential
report to the Commission regarding the results of
the procurement events;
(iv) assess compliance with the procurement
plan approved by the Commission for the
supplemental procurement process;
(v) preserve the confidentiality of supplier
and bidding information in a manner consistent
with all applicable laws, rules, regulations, and
tariffs;
(vi) provide expert advice to the Commission
and consult with the procurement administrator

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regarding issues related to procurement process
design, rules, protocols, and policy-related
matters;
(vii) consult with the procurement
administrator regarding the development and use of
benchmark criteria, standard form contracts,
credit policies, and bid documents; and
(viii) perform, with respect to the
supplemental procurement process, any other
procurement monitor duties specifically delineated
within subsection (i) of this Section.
(C) Solicitation, pre-qualification, and
registration of bidders. The procurement administrator
shall disseminate information to potential bidders to
promote a procurement event, notify potential bidders
that the procurement administrator may enter into a
post-bid price negotiation with bidders that meet the
applicable benchmarks, provide supply requirements,
and otherwise explain the competitive procurement
process. In addition to such other publication as the
procurement administrator determines is appropriate,
this information shall be posted on the Agency's and
the Commission's websites. The procurement
administrator shall also administer the
prequalification process, including evaluation of
credit worthiness, compliance with procurement rules,

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and agreement to the standard form contract developed
pursuant to item (D) of this paragraph (4). The
procurement administrator shall then identify and
register bidders to participate in the procurement
event.
(D) Standard contract forms and credit terms and
instruments. The procurement administrator, in
consultation with the Agency, the Commission, and
other interested parties and subject to Commission
oversight, shall develop and provide standard contract
forms for the supplier contracts that meet generally
accepted industry practices as well as include any
applicable State of Illinois terms and conditions that
are required for contracts entered into by an agency
of the State of Illinois. Standard credit terms and
instruments that meet generally accepted industry
practices shall be similarly developed. Contracts for
new photovoltaics shall include a provision attesting
that the supplier will use a qualified person for the
installation of the device pursuant to paragraph (1)
of subsection (i) of this Section. The procurement
administrator shall make available to the Commission
all written comments it receives on the contract
forms, credit terms, or instruments. If the
procurement administrator cannot reach agreement with
the parties as to the contract terms and conditions,

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the procurement administrator must notify the
Commission of any disputed terms and the Commission
shall resolve the dispute. The terms of the contracts
shall not be subject to negotiation by winning
bidders, and the bidders must agree to the terms of the
contract in advance so that winning bids are selected
solely on the basis of price.
(E) Requests for proposals; competitive
procurement process. The procurement administrator
shall design and issue requests for proposals to
supply renewable energy credits in accordance with the
supplemental procurement plan, as approved by the
Commission. The requests for proposals shall set forth
a procedure for sealed, binding commitment bidding
with pay-as-bid settlement, and provision for
selection of bids on the basis of price, provided,
however, that no bid shall be accepted if it exceeds
the benchmark developed pursuant to item (F) of this
paragraph (4).
(F) Benchmarks. Benchmarks for each product to be
procured shall be developed by the procurement
administrator in consultation with Commission staff,
the Agency, and the procurement monitor for use in
this supplemental procurement.
(G) A plan for implementing contingencies in the
event of supplier default, Commission rejection of

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results, or any other cause.
(5) Within 2 business days after opening the sealed
bids, the procurement administrator shall submit a
confidential report to the Commission. The report shall
contain the results of the bidding for each of the
products along with the procurement administrator's
recommendation for the acceptance and rejection of bids
based on the price benchmark criteria and other factors
observed in the process. The procurement monitor also
shall submit a confidential report to the Commission
within 2 business days after opening the sealed bids. The
report shall contain the procurement monitor's assessment
of bidder behavior in the process as well as an assessment
of the procurement administrator's compliance with the
procurement process and rules. The Commission shall review
the confidential reports submitted by the procurement
administrator and procurement monitor and shall accept or
reject the recommendations of the procurement
administrator within 2 business days after receipt of the
reports.
(6) Within 3 business days after the Commission
decision approving the results of a procurement event, the
Agency shall enter into binding contractual arrangements
with the winning suppliers using the standard form
contracts.
(7) The names of the successful bidders and the

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average of the winning bid prices for each contract type
and for each contract term shall be made available to the
public within 2 days after the supplemental procurement
event. The Commission, the procurement monitor, the
procurement administrator, the Agency, and all
participants in the procurement process shall maintain the
confidentiality of all other supplier and bidding
information in a manner consistent with all applicable
laws, rules, regulations, and tariffs. Confidential
information, including the confidential reports submitted
by the procurement administrator and procurement monitor
pursuant to this Section, shall not be made publicly
available and shall not be discoverable by any party in
any proceeding, absent a compelling demonstration of need,
nor shall those reports be admissible in any proceeding
other than one for law enforcement purposes.
(8) The supplemental procurement provided in this
subsection (i) shall not be subject to the requirements
and limitations of subsections (c) and (d) of this
Section.
(9) Expenses incurred in connection with the
procurement process held pursuant to this Section,
including, but not limited to, the cost of developing the
supplemental procurement plan, the procurement
administrator, procurement monitor, and the cost of the
retirement of renewable energy credits purchased pursuant

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to the supplemental procurement shall be paid for from the
Illinois Power Agency Renewable Energy Resources Fund. The
Agency shall enter into an interagency agreement with the
Commission to reimburse the Commission for its costs
associated with the procurement monitor for the
supplemental procurement process.
(Source: P.A. 98-672, eff. 6-30-14; 99-906, eff. 6-1-17.)
(20 ILCS 3855/1-75)
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. The Planning and Procurement Bureau shall also
develop procurement plans and conduct competitive procurement
processes in accordance with the requirements of Section

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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
Utilities Act and subsection (j) of this Section, 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.
(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:

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(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
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

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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
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

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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
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.

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(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
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

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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 90 days after the effective date of this amendatory
Act of the 102nd General Assembly, the Agency shall
release for comment a revision to the long-term renewable
resources procurement plan, updating only elements of the
most recently approved plan as needed to comply with this
amendatory Act of the 102nd General Assembly. 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
include the goals for procurement of renewable energy
credits to meet 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

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25% by the 2025 delivery year; increasing by at least 4%
each delivery year after the 2025 delivery year to at
least 45% by 2030; increasing by at least 3% each delivery
year after the 2030 delivery year to at least 60% by 2035,
75% by 2040, and 90% by 2045; increasing by at least 2%
each delivery year after the 2045 delivery year to 100% by
the 2050 delivery year and continuing at 100% no less than
25% for each delivery year thereafter. In the event of a
conflict between these goals and the new wind and new
photovoltaic 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 and new photovoltaic 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 on the spot market that are unlikely to lead to the
development of new renewable resources.
For the delivery year beginning June 1, 2017, the
procurement plan shall include 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

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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 include 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 include
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;
increasing by at least 4% each year thereafter to at least
45% by June 1, 2030; increasing by at least 3% each year
thereafter to at least 90% by June 1, 2045; increasing by
at least 2% each year thereafter to at least 100% by June
1, 2050 and 25% by June 1, 2026 and each year thereafter.
For each delivery year, the Agency shall first
recognize each utility's obligations for that delivery
year under existing contracts. Any renewable energy

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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) Of the renewable energy credits procured under
this subsection (c), at least 75% shall come from wind and
photovoltaic projects. The long-term renewable resources
procurement plan described in subparagraph (A) of this
paragraph (1) shall include the procurement of renewable
energy credits in amounts equal to at least the following:
at least 5,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2020, 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;
at least 13,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2021;
at least 18,000,000 renewable energy credits from
new wind and new photovoltaic projects for each

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delivery year by the end of the delivery year
beginning June 1, 2022;
at least 23,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2023;
at least 28,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2024;
at least 33,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2025;
at least 38,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2026;
at least 43,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2027;
at least 48,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2028;

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at least 53,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2029; and
at least 58,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2030.
(i) By the end of the 2020 delivery year:
At least 2,000,000 renewable energy credits
for each delivery year shall come from new wind
projects; and
Of the renewable energy credits procured from
new wind and new photovoltaic projects for each
delivery year At least 2,000,000 renewable energy
credits for each delivery year shall come from new
photovoltaic projects; of that amount, to the
extent possible, the Agency shall procure 50% from
new wind projects and 50% from new photovoltaic
projects. Of the amount to be procured from new
photovoltaic projects, the Agency shall procure,
to the extent reasonably practicable: at least 33%
50% from distributed and community solar
photovoltaic projects using the programs program
outlined in subparagraphs subparagraph (K) and (N)
of this paragraph (1) through the 2021 delivery

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year, increasing ratably beginning in the 2022
delivery year to at least 50% by the 2038 delivery
year and for each delivery year thereafter from
distributed renewable energy generation devices or
community renewable generation projects; at least
40% from utility-scale solar projects; at least 7%
2% from brownfield site photovoltaic projects that
are not community renewable generation projects;
and the remainder shall be determined through the
long-term planning process described in
subparagraph (A) of this paragraph (1).
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 Illinois Power
Agency and its Administrator in its Illinois Solar for All
Program.
Of the amount of renewable energy credits to be
procured from either distributed or community solar
photovoltaic projects using the programs outlined in

HB0804 Engrossed - 319 - LRB102 10881 SPS 16211 b
subparagraph (K) of this paragraph (1), the long-term plan
developed through the process described in subparagraph
(A) of this paragraph (1) shall use the following initial
breakdown, which may be adjusted upon review by the Agency
and approval by the Commission:
(i) at least 25% from distributed renewable energy
generation devices with a nameplate capacity of no
more than 25 kilowatts;
(ii) at least 25% from distributed renewable
energy generation devices with a nameplate capacity of
more than 25 kilowatts and no more than 2,000
kilowatts;
(iii) at least 25% from photovoltaic community
renewable generation projects; and
(iv) the remaining 25% shall be allocated as
specified by the Agency in the long-term renewable
resources procurement plan.
The ratable procurement of new renewable resources
discussed in this subparagraph (C) shall involve annual
procurements of new wind and new photovoltaic projects
and, in the case of the Adjustable Block Program created
by subparagraph (K) of this paragraph (1), the annual
release of new blocks of capacity each year with the goal
of encouraging stability and steady growth in the
renewable resources market and avoiding boom-bust cycles.
(ii) By the end of the 2025 delivery year:

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At least 3,000,000 renewable energy credits
for each delivery year shall come from new wind
projects; and
At least 3,000,000 renewable energy credits
for each delivery year shall come from new
photovoltaic projects; of that amount, to the
extent possible, 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
devices or community renewable generation
projects; at least 40% from utility-scale solar
projects; at least 2% from brownfield site
photovoltaic projects that are not community
renewable generation projects; and the remainder
shall be determined through the long-term planning
process described in subparagraph (A) of this
paragraph (1).
(iii) By the end of the 2030 delivery year:
At least 4,000,000 renewable energy credits
for each delivery year shall come from new wind
projects; and
At least 4,000,000 renewable energy credits
for each delivery year shall come from new
photovoltaic projects; of that amount, to the
extent possible, the Agency shall procure: at

HB0804 Engrossed - 321 - LRB102 10881 SPS 16211 b
least 50% from solar photovoltaic projects using
the program outlined in subparagraph (K) of this
paragraph (1) from distributed renewable energy
devices or community renewable generation
projects; at least 40% from utility-scale solar
projects; at least 2% from brownfield site
photovoltaic projects that are not community
renewable generation projects; and the remainder
shall be determined through the long-term planning
process described in subparagraph (A) of this
paragraph (1).
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
or within 3 years after the date the Commission
approves contracts for subsequent delivery years.
"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) unless they
are purchased in combination with the Adjustable
Block Program established in subparagraph (K) of
this paragraph (1), as described in paragraph

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(3.5) of subsection (b) of Section 1-56 of this
Act.
(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 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

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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
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, distribution, surcharges, and
add-on taxes.
Notwithstanding the requirements of this subsection
(c), the total of renewable energy resources procured

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under the procurement plan for any single year shall be
subject to the limitations of this subparagraph (E). Until
the delivery year beginning June 1, 2023, such 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 the greater of 2.67% 2.015% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2009 2007 or the incremental amount per kilowatthour
paid for these resources in 2011. Beginning with the
delivery year beginning June 1, 2023, 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 the
greater of 4.88% of the amount paid per kilowatt hour by
those customers during the year ending May 31, 2009 or the
incremental amount per kilowatt hour paid for these
resources in 2011. 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

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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.
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, no
subsequent rate impact determinations shall be made and no
adjustments to those contract amounts shall be allowed.
All costs incurred under such contracts shall be fully
recoverable by the electric utility as provided in this
Section.
(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;
(i-5) funding for the Illinois Solar for All

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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
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. 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

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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, and new
brownfield site photovoltaic projects within 120 days
after the effective date of this amendatory Act of the
102nd General Assembly in quantities needed to meet
the requirements of subparagraph (C) through the
delivery year beginning June 1, 2021. The Agency shall
also release additional blocks of capacity into the
Adjustable Block Program, as needed to sustain the
market for distributed renewable energy generation
devices with nameplate capacities both smaller and
larger than 25 kilowatts through the subsequent

HB0804 Engrossed - 329 - LRB102 10881 SPS 16211 b
long-term renewable resources procurement plan
revision process, within 120 days after the effective
date of this amendatory Act of the 102nd General
Assembly 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. Subsequent
forward procurements for utility-scale wind projects
shall solicit at least 1,000,000 renewable energy
credits delivered annually per procurement event and
shall be planned, scheduled, and designed such that
the cumulative amount of renewable energy credits
delivered from all new wind projects in each delivery
year shall not exceed the Agency's projection of the
cumulative amount of renewable energy credits that
will be delivered from all new photovoltaic projects,
including utility-scale and distributed photovoltaic
devices, in the same delivery year at the time
scheduled for wind contract delivery.
(iv) If, at any time after the time set for
delivery of renewable energy credits pursuant to the
initial procurements in items (i) and (ii) of this
subparagraph (G), the cumulative amount of renewable
energy credits projected to be delivered from all new
wind projects in a given delivery year exceeds the
cumulative amount of renewable energy credits

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projected to be delivered from all new photovoltaic
projects in that delivery year by 200,000 or more
renewable energy credits, then the Agency shall within
60 days adjust the procurement programs in the
long-term renewable resources procurement plan to
ensure that the projected cumulative amount of
renewable energy credits to be delivered from all new
wind projects does not exceed the projected cumulative
amount of renewable energy credits to be delivered
from all new photovoltaic projects by 200,000 or more
renewable energy credits, provided that nothing in
this Section shall preclude the projected cumulative
amount of renewable energy credits to be delivered
from all new photovoltaic projects from exceeding the
projected cumulative amount of renewable energy
credits to be delivered from all new wind projects in
each delivery year and provided further that nothing
in this item (iv) shall require the curtailment of an
executed contract. The Agency shall update, on a
quarterly basis, its projection of the renewable
energy credits to be delivered from all projects in
each delivery year. Notwithstanding anything to the
contrary, the Agency may adjust the timing of
procurement events conducted under this subparagraph
(G). The long-term renewable resources procurement
plan shall set forth the process by which the

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adjustments may be made.
(iv) (v) All procurements under this subparagraph
(G) 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).
(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
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

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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
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

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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
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

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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
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,

HB0804 Engrossed - 335 - LRB102 10881 SPS 16211 b
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 residents 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

HB0804 Engrossed - 336 - LRB102 10881 SPS 16211 b
facilities located in states 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. 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

HB0804 Engrossed - 337 - LRB102 10881 SPS 16211 b
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.
(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 designed to provide for
the steady, predictable, and sustainable growth of new

HB0804 Engrossed - 338 - LRB102 10881 SPS 16211 b
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: a schedule of standard
block purchase prices to be offered; a series of steps,
with associated nameplate capacity and purchase prices
that adjust from step to step; and automatic opening of
the next step as soon as the nameplate capacity and
available purchase prices for an open step are fully
committed or reserved. Only projects energized on or after
June 1, 2017 shall be eligible for the Adjustable Block
program. The Agency shall develop program features and
implementation processes that create consistent market
signals, making the program predictable and sustainable
for solar industry companies, thus allowing them to scale
up long-term hiring and investment activities. For each
block group the Agency shall determine the number of
blocks, 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 block groups shall be sufficient to

HB0804 Engrossed - 339 - LRB102 10881 SPS 16211 b
meet the goals in this subsection (c). 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 number of blocks, 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 at least
the following block groups in at least the following
amounts, which may be adjusted upon review by the Agency
and approval by the Commission as described in this
subparagraph (K):
(i) At least 25% from distributed renewable energy
generation devices with a nameplate capacity of no
more than 25 10 kilowatts.

HB0804 Engrossed - 340 - LRB102 10881 SPS 16211 b
(ii) At least 25% from distributed renewable
energy generation devices with a nameplate capacity of
more than 25 10 kilowatts and no more than 2,000
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) other block groups as specified by the
Agency and approved by the Commission in the long-term
renewable resources procurement plan in order to meet
the goals of this subsection (c) At least 25% from
photovoltaic community renewable generation projects.
(iv) The remaining 25% shall be allocated as
specified by the Agency in the long-term renewable
resources procurement plan.
The Adjustable Block program shall be designed to
ensure that renewable energy credits are procured from
photovoltaic distributed renewable energy generation
devices and new photovoltaic community renewable energy
generation projects in diverse locations, including urban
and rural areas, and are not concentrated in a few
geographic areas or excluding particular geographic areas.
The Adjustable Block program shall reserve 15% of each
block's capacity at the block's pricing to be available
for qualified vendors that are participants in the

HB0804 Engrossed - 341 - LRB102 10881 SPS 16211 b
Illinois Clean Energy Black, Indigenous, and People of
Color Contractor Accelerator, as described in the Clean
Jobs, Workforce and Contractor Equity Act, and a total of
40% of each block's capacity at the block's price to be
available for qualified vendors that score no less than
105 points in the equity points system described in
subparagraphs (A) through (H) of paragraph (7) of this
subsection (c). Nothing in this paragraph shall prohibit
the opening of additional blocks for the unreserved
capacity of each block. Beginning with the first update to
the Long-Term Renewable Resources Procurement Plan after
December 31, 2024, the Agency shall review the reserved
capacity level for future blocks. In developing its annual
budgets, the Agency shall project the amount of
development in each block, at the prices of each block,
expected to occur in the budget timeframe.
Immediately upon the effective date of this amendatory
Act of the 102nd General Assembly, the Adjustable Block
Program shall stop accepting applications from community
renewable generation projects and shall stop allocating
capacity remaining in open or future blocks to community
renewable generation projects.
(L) The procurement of photovoltaic renewable energy
credits under the Adjustable Block Program established
under items (i) through (iv) of subparagraph (K) and the
Community Solar Program established under subparagraph (N)

HB0804 Engrossed - 342 - LRB102 10881 SPS 16211 b
of this paragraph (1) shall be subject to the following
contract and payment terms:
(i) The Agency shall procure contracts of at least
15 years in length.
(ii) For those renewable energy credits that
qualify and are procured from projects with a
nameplate capacity of no more than 10 kilowatts under
item (i) of subparagraph (K) of this paragraph (1),
the renewable energy credit purchase price shall be
paid in full 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 energized. The electric
utility shall receive and retire all renewable energy
credits generated by the project for the first 15
years of operation.
(iii) For those renewable energy credits that
qualify and are procured from projects with a
nameplate capacity of more than 10 kilowatts but no
more than 200 kilowatts or, if approved at the
recommendation of the Agency in its long-term plan,
from projects that include a community ownership
component or are owned by a nonprofit or public entity
under item (ii) and (iii) of subparagraph (K) of this
paragraph (1) and any additional categories of
distributed generation included in the long-term

HB0804 Engrossed - 343 - LRB102 10881 SPS 16211 b
renewable resources procurement plan and approved by
the Commission, 20 percent of the renewable energy
credit purchase price 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
energized. 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 for the first 15
years of operation.
(iv) For those renewable energy credits that
qualify and are procured from all other projects under
subparagraph (K) or (N) of this paragraph (1), the
renewable energy credit purchase price shall be paid
by the contracting utilities over the 15-year life of
the contract. The electric utility shall receive and
retire all renewable energy credits generated by the
project for the first 15 years of operation.
(v) (iv) Each contract shall include provisions to
ensure the delivery of the renewable energy credits
for the full term of the contract.
(vi) (v) 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

HB0804 Engrossed - 344 - LRB102 10881 SPS 16211 b
Act. No contract shall be executed for an amount that
is less than one renewable energy credit per year.
(vii) (vi) 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 shall consider future uncommitted
funds to be reserved for these contracts on a
first-come, first-served basis, with the delivery of
renewable energy credits required beginning at the
time that the reserved funds become available.
(viii) (vii) Nothing in this Section shall require
the utility to advance any payment or pay any amounts
that exceed, in a given delivery year, (i) the actual
amount of revenues collected by the utility in the
delivery year and unspent available revenues from
prior delivery years, in both cases under paragraph
(6) of this subsection (c) and subsection (k) of
Section 16-108 of the Public Utilities Act and (ii)
other utility-held funds authorized for renewables
procurement by order of the Illinois Commerce
Commission. Contracts , and contracts executed under
this Section shall expressly incorporate this
limitation.

HB0804 Engrossed - 345 - LRB102 10881 SPS 16211 b
(ix) Notwithstanding items (ii), (iii), and (iv)
of this subparagraph (L), the Agency shall not be
restricted from offering additional payment structures
if it determines that such adjustments will better
achieve the goals of this subsection (c), as
prioritized in subparagraph (F) of this paragraph (1)
of this subsection (c). Any such adjustments shall be
approved by the Commission as a long-term plan
amendment under Section 16-111.5 of the Public
Utilities Act.
(x) Notwithstanding other requirements of this
subparagraph (L), no modification shall be required to
Adjustable Block Program contracts if they were
already executed before new contract forms are
implemented under the revised long-term plan that
follows this amendatory Act of the 102nd General
Assembly, as described in subparagraph (A) of this
paragraph (1).
(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
administer provisions of this Act, including, but not

HB0804 Engrossed - 346 - LRB102 10881 SPS 16211 b
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 Agency and its consultant or consultants shall
monitor block activity, share program activity with
stakeholders and conduct regularly scheduled 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 redistributing available funds or making adjustments to
purchase prices as necessary to achieve the goals of this
subsection (c). Program modifications to any price,
capacity block, or other program element that do not
deviate from the Commission's approved value by more than
25% shall take effect immediately and are not subject to
Commission review and approval. Program modifications to
any price, capacity block, or other program element that
deviate more than 25% 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

HB0804 Engrossed - 347 - LRB102 10881 SPS 16211 b
shall notify stakeholders in advance of any planned
changes.
Immediately upon the effective date of this amendatory
Act of the 102nd General Assembly, the Agency shall
consider whether changes to Adjustable Block Program
elements of less than 25% can and should be adopted to
bring the Adjustable Block Program in line with the
updated goals and targets of this subsection (c).
(N) The long-term renewable resources procurement plan
required by this subsection (c) shall include a Community
Solar Program for solar photovoltaic community renewable
generation projects and may include additional community
renewable generation programs or procurements open to
other or additional renewable technology program. The
Agency shall establish the terms, conditions, and program
requirements for the Community Solar Program and for any
other program or procurement for community renewable
generation projects with a goal to expand renewable energy
generating facility 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, create opportunities for subscribers to
participate in local renewables projects in both urban and
rural communities across the State, enable communities to
self-organize their own renewables projects, and increase

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community ownership of renewables projects. 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):
"Community" means:
(i) a social unit in which people come
together regularly to effect change;
(ii) a social unit in which participants are
marked by a cooperative spirit, a common purpose,
or shared interests or characteristics; or
(iii) a space understood by its residents to
be delineated through geographic boundaries or
landmarks.
"Community benefit" means:
(i) a range of services and activities that
provide affirmative, economic, environmental,
social, cultural, or physical value to a
community; or
(ii) 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

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which:
(i) 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;
(ii) members of that community participate in
decisions regarding the governance, operation,
maintenance, and upgrades of and to that facility;
and
(iii) members of that community benefit from
regular use of that facility.
"Portable" , "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.
"Stakeholder" means any person or entity with a
declared or conceivable interest in a project.
"Transferable" ; and "transferable" means that a
subscriber may assign or sell subscriptions to another
person within the same utility service territory.
The Community Solar Program established under this
subparagraph (N) shall be designed to give preference to
the procurement of renewable energy credits from projects
that meet one or more of the following community criteria
for a portion of the overall renewable energy credits to
be procured under the Community Solar Program:

HB0804 Engrossed - 350 - LRB102 10881 SPS 16211 b
(i) include community ownership;
(ii) are put forward by approved vendors or
companies that take higher numbers of the equity
actions described in paragraph (7) of this subsection
(c);
(iii) provide additional community benefit, beyond
project participation as a subscriber;
(iv) ensure meaningful involvement in project
organization and development by nonprofit
organizations, public entities, or community members;
(v) increase the geographic diversity of projects
in the Community Solar Program;
(vi) are also brownfield site photovoltaic
projects;
(vii) ensure engagement in project operations and
management by nonprofit organizations, public
entities, or community members; or
(viii) serve only local subscribers.
Terms and guidance within these criteria that are not
defined in this subparagraph (N) shall be defined by the
Agency, with stakeholder input, during the development of
the Agency's long-term renewable resources procurement
plan.
The Community Solar Program shall procure renewable
energy credits in the following manner:
(1) For a portion of the overall renewable energy

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credits to be procured under the Community Solar
Program, the Agency shall initiate a request for
projects that serve a minimum of 50% residential and
small business subscribers and maximize the community
criteria in this subparagraph (N). The Agency shall
score all projects submitted under this request for
projects based on their ability to meet the community
criteria. Both projects that better meet individual
criteria as well as projects that address a higher
number of criteria shall receive a higher score. The
Agency shall also consider renewable energy credit
price when qualifying and scoring projects. The Agency
shall select the highest scoring projects to advance,
subject to budget availability, reserving a portion of
the capacity selected through the request for those
projects that include a community ownership component.
(2) Once projects that maximize the community
criteria have been selected, the Agency shall initiate
a procurement for the remaining renewable energy
credits from photovoltaic community renewable
generation projects needed to meet the goals of
subparagraph (C) of this paragraph (1). The Agency
shall strive to procure renewable energy credits
through the Community Solar Program 4 times per
delivery year. This manner of procuring renewable
energy credits for the Community Solar Program may be

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adjusted upon review by the Agency and approval by the
Commission through the long-term renewable resources
procurement plan update process in order to better
meet the goals of this subsection (c) and the
requirements of this subparagraph (N).
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 procure purchase renewable energy
credits from subscribed shares of photovoltaic community
renewable generation projects through the Community Solar
Program described in this subparagraph (N) 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 Agency
shall procure renewable energy credits from unsubscribed
shares of photovoltaic community renewable generation
projects that have achieved a subscription level of 80% or
higher at the average winning price from the most recent
procurement of renewable energy credits from utility-scale
solar photovoltaic projects or another amount established
through the long-term planning process described in
subparagraph (A) of this paragraph (1) of this subsection
(c). The electric utility shall purchase any unsubscribed

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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 5% of the funds
available under the plan for the applicable delivery year,
or $10,000,000 per delivery year, whichever is greater, to
fund the programs, and the plan shall determine the amount
of funding to be apportioned to the programs identified in

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subsection (b) of Section 1-56 of this Act; provided that
for the delivery years beginning June 1, 2017, June 1,
2021, and June 1, 2025, the long-term renewable resources
procurement plan shall allocate 10% of the funds available
under the plan for the applicable delivery year, or
$20,000,000 per delivery year, whichever is greater, and
$10,000,000 of such funds in such year shall be used by an
electric utility that serves more than 3,000,000 retail
customers in the State to implement a Commission-approved
plan under 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) The Agency shall give preference to the
procurement of renewable energy credits from new
utility-scale photovoltaic and wind projects that provide
additional land use and environmental benefits such as:
(i) agriculture-friendly benefits;
(ii) pollinator-friendly site practices as
identified in the Pollinator-Friendly Solar Site Act;
(iii) brownfield redevelopment, through location
at sites regulated under any of the programs
identified as a brownfield site photovoltaic project

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under Section 1-10;
(iv) vegetative buffers, which are areas
consisting of perennial vegetation, excluding invasive
plants and noxious weeds, adjacent to a body of water
that protects the water resources from runoff
pollution, and stabilizes soils, shores, and banks to
protect or provide riparian corridors;
(v) commitment to land use practices that result
in carbon sequestration;
(vi) land use, design, siting, and construction
practices that minimize interference with natural
habitat and wildlife; and
(vii) other land use or environmental benefits
identified by the Agency with input from stakeholders
received during the long-term renewable resources
procurement plan revision process.
(1.5) No Later than May 31, 2022, all Illinois
electric cooperatives and municipal utilities shall
develop a plan to ensure that their members and customers
have access to renewable energy on a reasonably equivalent
basis to all other residents in the State, including the
overall percentage goals listed in subparagraph (A) of
paragraph (1) of this Section and the carbon-free
resources goals of subsection (k) of this Section 1-75.
These plans shall be developed through a public process
involving municipal utility and cooperative members,

HB0804 Engrossed - 356 - LRB102 10881 SPS 16211 b
customers, and other members of the public, and shall be
filed with the Illinois Commerce Commission at least every
2 years.
(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
procurement of renewable energy resources imposed by item

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(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
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

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State and federal law, the renewable energy credit
procurements, Adjustable Block solar program, and
community renewable generation program, and Illinois Solar
for All Program shall provide employment opportunities for
all segments of the population and workforce, including
black, indigenous, and people of color-owned
minority-owned and women-owned female-owned business
enterprises, as well as black, indigenous, and people of
color-owned and women-owned worker-owned cooperatives or
other such employee-owned entities, and shall not,
consistent with State and federal law, discriminate based
on race or socioeconomic status.
Specifically, as the Agency conducts competitive
procurement processes and implements programs to procure
renewable energy credits identified in the long-term
renewable resources procurement plan, the Agency must give
preference to the procurement of renewable energy credits
from those entities, including approved vendors,
companies, nonprofit organizations, and worker-owned
cooperatives, as described in the equity actions points
calculation in this paragraph (7). Entities from whom the
Agency procures renewable energy credits shall comply with
submitting an annual report of elements described in the
equity actions points calculation in this paragraph (7)
for the first 3 years after the year of the procurement
event in which renewable energy credits were procured on

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June 1 of each applicable year. For the purposes of this
subsection (c):
"BIPOC" and "black, indigenous, and people of color"
are identical in meaning and have the same definition as
used in the Clean Jobs, Workforce and Contractor Equity
Act.
"Labor peace agreement" means an agreement between an
entity and any labor organization recognized under the
National Labor Relations Act, referred to in this Act as a
bona fide labor organization, that may prohibit labor
organizations and members from engaging in picketing, work
stoppages, boycotts, and any other economic interference
with the entity. This agreement means that the entity has
agreed not to disrupt efforts by the bona fide labor
organization to communicate with, and attempt to organize
and represent, the entity's employees. The agreement shall
provide a bona fide labor organization access at
reasonable times to areas in which the entity's employees
work, for the purpose of meeting with employees to discuss
their right to representation, employment rights under
State law, and terms and conditions of employment. This
type of agreement shall not mandate a particular method of
election or certification of the bona fide labor
organization.
"Energy worker" has the meaning set forth in Section
20-10 of the Energy Community Reinvestment Act.

HB0804 Engrossed - 360 - LRB102 10881 SPS 16211 b
The Illinois Power Agency, using alternative bidding
procedures as provided for in subsection (i) of Section
20-10 of the Illinois Procurement Code, shall track and
award equity actions in bids for the renewable energy
credit procurements, Adjustable Block solar program,
community renewable generation program, and Illinois Solar
for All Program using a points system totaling a maximum
of 260 points. This system shall consider both equity
actions to meet the goals described in paragraph (7), and
the bid prices, as follows:
(A) Hiring Equity Action (up to 20 points):
awarded based on the percentage of the company's or
entity's workforce (measured by full-time equivalents
as defined by the Government Accountability Office of
the United States Congress) who are BIPOC and who are
paid at or above the prevailing wage; one point shall
be awarded for each 5% of the workforce which is
composed of BIPOC who are also paid at or above the
prevailing wage, up to a maximum of 20 points.
(B) Clean Jobs Workforce Hubs Action and Returning
Residents Action (up to 20 points): awarded based on
the percentage of the workers associated with the
project who are graduates or trainees from the Clean
Jobs Workforce Hubs Network Program, or the Returning
Residents Clean Jobs Training Program, or equivalent
certification, and paid at or above the prevailing

HB0804 Engrossed - 361 - LRB102 10881 SPS 16211 b
wage; one point shall be awarded for each 5% of the
workforce which is composed of Clean Jobs Workforce
Hubs Network Program graduates or trainees or
Returning Residents Clean Jobs Training Program
graduates or trainees who are also paid a living wage,
up to a maximum of 20 points.
(C) Minority Business Enterprise Action (30
points): being an entity defined as a minority-owned
business under Section 2 of the Business Enterprise
for Minorities, Women, and Persons with Disabilities
Act or (ii) an entity, including a business, a
nonprofit, or a worker-owned cooperative registered
with other state, regional, or local programs intended
to certify minority-owned businesses.
(D) Contracting Equity Action (20 points): awarded
based on the percentage of the company's or entity's
subcontractors or vendors that are BIPOC-owned
businesses, defined as a minority owned-business or a
woman-owned business under Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act, or awarded based on the percentage
of the subcontracted workers associated with the
project, including from all subcontractors and vendors
that are Black, indigenous, and people of color who
are paid at or above the prevailing wage; 5 points
shall be awarded for each 10% of either subcontractors

HB0804 Engrossed - 362 - LRB102 10881 SPS 16211 b
or subcontractors' workers who are Black, indigenous,
and people of color, whichever is greater, up to a
maximum of 20 points. Bids may not be eligible for
points under this subjection unless they plan to use
subcontractors. If a company or entity does not use
subcontractors, points awarded for the Contracting
Equity Action shall be equivalent to the point value
awarded for the Hiring Equity Action under
subparagraph (A).
(E) Expanding Clean Energy Entrepreneurship Action
(20 points): awarded to entities who are current or
former participant contractors in the Expanding Clean
Energy Entrepreneurship and Contractor Incubators
Network Program or current or former participants in
the Illinois Clean Energy Black, Indigenous, and
People of Color Primes Contractor Accelerator Program.
(F) Community Benefits Action (15 points): (i) for
projects 100 kW in size or larger, project has an
executed Community Benefits Agreement that could
include, but is not limited to, a commitment to hire
local workers, union workers, energy workers
transitioning to clean energy jobs, Clean Jobs
Workforce Hubs Network Program graduates, or current
or former participant contractors in the Expanding
Clean Energy Entrepreneurship and Contractor
Incubators Network Program a commitment to pay workers

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at or above the prevailing wage, and a commitment to
give communities ownership opportunities in clean
energy projects; and (ii) for projects under 100 kW in
size, companies pay their workforces at or above the
prevailing wage.
(G) Small Business Action (15 points): company's
workforce is composed of 3 or fewer full-time
employees (measured by full-time equivalents as
defined by the Government Accountability Office of the
United States Congress).
(H) Labor Peace Agreement Action (10 points): (i)
for a bidder with 20 or more employees: the bidder
attests that the bidder has entered into a labor peace
agreement, will abide by the terms of the agreement,
and will submit a copy of the page of the labor peace
agreement that contains the signatures of the union
representative and the installer, or (ii) for a bidder
that is a party to a labor peace agreement with a bona
fide labor organization that currently represents, or
is actively seeking to represent energy efficiency
installers and other workers in Illinois, or (iii) the
bidder submits an attestation affirming that the
bidder will use best efforts to use union labor in the
bidder's projects and in the construction or retrofit
of the facilities associated with the bidder's
renewable energy operations, where applicable.

HB0804 Engrossed - 364 - LRB102 10881 SPS 16211 b
(I) Price of bid (130 points): as scored by the
Illinois Power Agency.
Bids scoring fewer than 135 points shall not be
awarded contracts.
(8) To the greatest extent practical, the Agency shall
give preference to the procurement of renewable energy
credits from proposed utility-scale projects that are
located in Clean Energy Empowerment Zones as defined in
the Energy Community Reinvestment Act. If this paragraph
(8) conflicts with other provisions of law or the Agency
determines that full compliance with this paragraph (8)
would be unreasonably costly or administratively
impractical, the Agency shall be authorized to propose
alternative approaches to achieve development of renewable
energy resources in Clean Energy Empowerment Zones or seek
an exemption from this requirement from the Commission.
(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

HB0804 Engrossed - 365 - LRB102 10881 SPS 16211 b
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
16-111.5 of the Public Utilities Act.
A utility shall be deemed to have complied with the

HB0804 Engrossed - 366 - LRB102 10881 SPS 16211 b
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
service to:
(A) in 2010, no more than 0.5% of the amount paid

HB0804 Engrossed - 367 - LRB102 10881 SPS 16211 b
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
service to no more than the greater of (i) 2.015% of
the amount paid per kilowatthour by those customers

HB0804 Engrossed - 368 - LRB102 10881 SPS 16211 b
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
subject to both approval of the initial clean coal
facility by the General Assembly and satisfaction of the

HB0804 Engrossed - 369 - LRB102 10881 SPS 16211 b
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,
substitute natural gas, if any, grants or other
support provided by the State of Illinois or the

HB0804 Engrossed - 370 - LRB102 10881 SPS 16211 b
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
times a fraction, the numerator of which is such
utility's retail market sales of electricity

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(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
during such hour times a fraction, the numerator
of which is such utility's retail market sales of

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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
utility that is party to such sourcing agreement
(or any successor delivery point at which such

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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
periodically reported to the Federal Energy
Regulatory Commission and to purchasers in

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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
or that sequestration of emissions from prior
years has failed, resulting in the release of

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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
specified in paragraph (3) of this subsection (d)
shall be reviewed annually by an independent

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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
statutory obligations. Commission review shall
occur no less than every 3 years, regardless of

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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
to the power purchase provisions, have been
approved by the Federal Energy Regulatory

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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
"facility cost report"), which shall be prepared in
accordance with the requirements of this paragraph (4)

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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
process of selecting such experts or consultants prior
to receipt of the facility cost report.

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(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
duly licensed engineering and construction firms
detailing the estimated capital costs payable to one

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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
in nominal dollars as of the date that the quote is
prepared and shall include capitalized financing costs

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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
vendors under long-term service agreements and plant
operating agreements, or recognized third party plant

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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
planning process and thereafter, the Agency and the
Commission shall consider sourcing agreements covering

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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.
(6) Costs incurred under this subsection (d) or
pursuant to a contract entered into under this subsection

HB0804 Engrossed - 385 - LRB102 10881 SPS 16211 b
(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
procured under this subsection (d-5) shall be for a term
of 10 years ending May 31, 2027. The quantity of zero

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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
over the remaining useful life of the zero
emission facility, which shall be used to

HB0804 Engrossed - 387 - LRB102 10881 SPS 16211 b
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
subparagraph (A) may be submitted on a confidential
basis and shall be treated and maintained by the

HB0804 Engrossed - 388 - LRB102 10881 SPS 16211 b
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
defined as follows:
(i) Social Cost of Carbon: The Social Cost of

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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
determined by the Midcontinent Independent System
Operator, Inc., divided by 24 hours per day.

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(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
by the Base Residual Auction, or its
successor, price for the rest of the RTO

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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
which the largest percentage of load
cleared for Local Resource Zone 4, divided

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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 residents 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

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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
received and file its zero emission standard
procurement plan with the Commission.

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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 residents
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

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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
than one price, the average of the prices,
paid for renewable energy credits from new

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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
under this subparagraph and subparagraphs (C) and (D)
of this paragraph (1). The procurement and plan

HB0804 Engrossed - 397 - LRB102 10881 SPS 16211 b
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:
(i) A zero emission facility shall be excused
from its performance under the contract for any

HB0804 Engrossed - 398 - LRB102 10881 SPS 16211 b
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
assessment, or fee on the generation of
electricity, the ownership or leasehold of a

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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
hearing, enter an order acknowledging the contract
termination election if such termination is consistent

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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
subsection (k) of Section 16-108 of the Public Utilities
Act. To arrive at a maximum dollar amount of zero emission

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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
cost-effective zero emission credits.
(3) Six years after the execution of a contract under

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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
shall be calculated by multiplying the quantity of zero
emission credits delivered under the contract times the

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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
emission credits through an automatic adjustment clause
tariff in accordance with subsection (k) and (m) of

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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.
(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.
(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, or
zero emission 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

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credit, or zero emission 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.
(j) Renewable energy supply.
(1) Beginning with the energy to be delivered in the
delivery year commencing on June 1, 2023, the Agency shall
assess the feasibility of procuring cost-effective,
long-term contracts for energy supply from renewable
energy projects, 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.
(2) Long-term contracts as described in this
subsection (j) shall refer to contracts that are
preferably no less than a 15-year period, but in no case
less than a 5-year period.
(3) The Agency shall evaluate energy supply
procurements that enable greater achievement, or more
cost-effective achievement, of the renewable energy goals
in this Section, including through coordination or
bundling with procurements of renewable energy credits, or

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capacity from renewable energy resources, as provided
under subparagraph (P) of subsection (c) of this Section,
or capacity from renewable energy resources, as provided
under subsection (k) of this Section.
(4) The Agency shall include in its annual procurement
plan the results of this assessment and any recommended
procurements. The Agency shall, at a minimum, reevaluate
its assessment every 3 years, incorporating new
information from updated data, including, but not limited
to, the results of its procurements, competitive market
trends, and energy procurements in other states.
(k) Capacity procurement.
(1) This Section grants the Illinois Power Agency the
sole authority to conduct auctions for the purpose of
procuring capacity if a public utility in the State elects
to use the Fixed Resource Requirement Alternative as
provided for in the Open Access Transmission Tariff,
Reliability Assurance Agreement, and manuals of PJM
Interconnection, LLC or its successors, and that election
is approved by the Illinois Commerce Commission. Where the
election is approved by the Illinois Commerce Commission,
the Illinois Power Agency shall develop a procurement plan
for the procurement of capacity in amounts necessary to
ensure the public utility's resource adequacy pursuant to
PJM's federally-mandated requirements. The Agency is
authorized to conduct Capacity Procurement auctions as

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necessary to meet the public utility's resource
obligations while achieving the objectives set forth in
this Section for the duration of the public utility's
election of the Fixed Resource Requirement Alternative.
(2) The draft procurement plan is subject to public
comment, as required by Section 16-111.5 of the Public
Utilities Act.
(3) The Agency shall design the Capacity Procurement
Plan to achieve the following objectives:
(i) Through one or more auctions which procure
capacity for one or more years, meets the public
utility's resource obligation under the Fixed Resource
Requirement Alternative while maximizing benefits that
meet the State's public interest in the health, safety
and welfare of its residents, including, but not
limited to: significantly reduced emissions in the
State from power generation sources; consumer savings;
and those interests described in subparagraph (I) of
paragraph (1) of subsection (c) of Section 1-75 of the
Illinois Power Agency Act.
(ii) Implements a limiter on auction payments to
all resources that are not renewable energy resources,
demand response, or energy efficiency resources. The
limiter shall be imposed on all other resources such
that total payments under the auction ensure consumer
savings at an amount no less than 5% below a baseline

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of previous years' payments.
(iii) Implements a limiter on participating
carbon-emitting resources such that emissions decrease
below a baseline of previous years' emissions.
(4) As part of its Capacity Procurement plans, the
Agency may implement an auction for an optional bundled
product which includes payments to resources that provide
both capacity and renewable energy credits. Renewable
energy resources that are not eligible to participate in
auctions pursuant to subparagraph (J) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois Power
Agency Act are not eligible to participate in auctions
conducted to implement Capacity Procurement plans.
(Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19;
101-113, eff. 1-1-20.)
Section 90-20. The State Finance Act is amended by adding
Sections 5.935, 5.936, 5.937 and as follows:
(30 ILCS 105/5.935 new)
Sec. 5.935. The Energy Community Reinvestment Fund.
(30 ILCS 105/5.936 new)
Sec. 5.936. The Illinois Commerce Commission Intervenor
Compensation Fund.

HB0804 Engrossed - 409 - LRB102 10881 SPS 16211 b
(30 ILCS 105/5.937 new)
Sec. 5.937. The Illinois Clean Energy Jobs and Justice
Fund.
Section 90-25. The Illinois Income Tax Act is amended by
changing Section 201 as follows:
(35 ILCS 5/201)
(Text of Section without the changes made by P.A. 101-8,
which did not take effect (see Section 99 of P.A. 101-8))
Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount
equal to 2 1/2% of the taxpayer's net income for the
taxable year.
(2) In the case of an individual, trust or estate, for

HB0804 Engrossed - 410 - LRB102 10881 SPS 16211 b
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June
30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior
to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2011,
and ending prior to January 1, 2015, an amount equal to 5%
of the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and

HB0804 Engrossed - 411 - LRB102 10881 SPS 16211 b
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section
202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%
of the taxpayer's net income for the taxable year.
(5.3) In the case of an individual, trust, or estate,
for taxable years beginning prior to July 1, 2017, and
ending after June 30, 2017, an amount equal to the sum of
(i) 3.75% of the taxpayer's net income for the period
prior to July 1, 2017, as calculated under Section 202.5,
and (ii) 4.95% of the taxpayer's net income for the period
after June 30, 2017, as calculated under Section 202.5.
(5.4) In the case of an individual, trust, or estate,
for taxable years beginning on or after July 1, 2017, an
amount equal to 4.95% of the taxpayer's net income for the
taxable year.
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of the
taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1,
1989, as calculated under Section 202.3, and (ii) 4.8% of

HB0804 Engrossed - 412 - LRB102 10881 SPS 16211 b
the taxpayer's net income for the period after June 30,
1989, as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net
income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to
January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years
beginning on or after January 1, 2011, and ending prior to
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of
the taxpayer's net income for the period prior to January
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to

HB0804 Engrossed - 413 - LRB102 10881 SPS 16211 b
July 1, 2017, an amount equal to 5.25% of the taxpayer's
net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017, and ending after June 30,
2017, an amount equal to the sum of (i) 5.25% of the
taxpayer's net income for the period prior to July 1,
2017, as calculated under Section 202.5, and (ii) 7% of
the taxpayer's net income for the period after June 30,
2017, as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017, an amount equal to 7%
of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.
(b-5) Surcharge; sale or exchange of assets, properties,
and intangibles of organization gaming licensees. For each of
taxable years 2019 through 2027, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles (i)
of an organization licensee under the Illinois Horse Racing
Act of 1975 and (ii) of an organization gaming licensee under
the Illinois Gambling Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed shall not apply if:

HB0804 Engrossed - 414 - LRB102 10881 SPS 16211 b
(1) the organization gaming license, organization
license, or racetrack property is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
licensee or the substantial owners of the initial
licensee;
(B) cancellation, revocation, or termination of
any such license by the Illinois Gaming Board or the
Illinois Racing Board;
(C) a determination by the Illinois Gaming Board
that transfer of the license is in the best interests
of Illinois gaming;
(D) the death of an owner of the equity interest in
a licensee;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the license when the license was issued; or
(2) the controlling interest in the organization
gaming license, organization license, or racetrack
property is transferred in a transaction to lineal

HB0804 Engrossed - 415 - LRB102 10881 SPS 16211 b
descendants in which no gain or loss is recognized or as a
result of a transaction in accordance with Section 351 of
the Internal Revenue Code in which no gain or loss is
recognized; or
(3) live horse racing was not conducted in 2010 at a
racetrack located within 3 miles of the Mississippi River
under a license issued pursuant to the Illinois Horse
Racing Act of 1975.
The transfer of an organization gaming license,
organization license, or racetrack property by a person other
than the initial licensee to receive the organization gaming
license is not subject to a surcharge. The Department shall
adopt rules necessary to implement and administer this
subsection.
(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or
receiving income in or as a resident of this State. The
Personal Property Tax Replacement Income Tax shall be in
addition to the income tax imposed by subsections (a) and (b)
of this Section and in addition to all other occupation or
privilege taxes imposed by this State or by any municipal

HB0804 Engrossed - 416 - LRB102 10881 SPS 16211 b
corporation or political subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed

HB0804 Engrossed - 417 - LRB102 10881 SPS 16211 b
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on
such income by the foreign insurer's state of domicile. For
the purposes of this subsection (d-1), an inter-affiliate
includes a mutual insurer under common management.
(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections
(b) and (d) be reduced below the rate at which the sum of:
(A) the total amount of tax imposed on such
foreign insurer under this Act for a taxable year, net
of all credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of
the Illinois Insurance Code, the fire insurance
company tax imposed by Section 12 of the Fire
Investigation Act, and the fire department taxes
imposed under Section 11-10-1 of the Illinois
Municipal Code,
equals 1.25% for taxable years ending prior to December
31, 2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for

HB0804 Engrossed - 418 - LRB102 10881 SPS 16211 b
the taxable year, as described by subsection (1) of
Section 409 of the Illinois Insurance Code. This paragraph
will in no event increase the rates imposed under
subsections (b) and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates
imposed by subsection (b) and only after the tax imposed
by subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(e) Investment credit. A taxpayer shall be allowed a
credit against the Personal Property Tax Replacement Income
Tax for investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service
during the taxable year, provided such property is placed
in service on or after July 1, 1984. There shall be allowed
an additional credit equal to .5% of the basis of
qualified property placed in service during the taxable
year, provided such property is placed in service on or
after July 1, 1986, and the taxpayer's base employment
within Illinois has increased by 1% or more over the
preceding year as determined by the taxpayer's employment

HB0804 Engrossed - 419 - LRB102 10881 SPS 16211 b
records filed with the Illinois Department of Employment
Security. Taxpayers who are new to Illinois shall be
deemed to have met the 1% growth in base employment for the
first year in which they file employment records with the
Illinois Department of Employment Security. The provisions
added to this Section by Public Act 85-1200 (and restored
by Public Act 87-895) shall be construed as declaratory of
existing law and not as a new enactment. If, in any year,
the increase in base employment within Illinois over the
preceding year is less than 1%, the additional credit
shall be limited to that percentage times a fraction, the
numerator of which is .5% and the denominator of which is
1%, but shall not exceed .5%. The investment credit shall
not be allowed to the extent that it would reduce a
taxpayer's liability in any tax year below zero, nor may
any credit for qualified property be allowed for any year
other than the year in which the property was placed in
service in Illinois. For tax years ending on or after
December 31, 1987, and on or before December 31, 1988, the
credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether it
exceeds the original liability or the liability as later
amended, such excess may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit years if the taxpayer (i) makes investments

HB0804 Engrossed - 420 - LRB102 10881 SPS 16211 b
which cause the creation of a minimum of 2,000 full-time
equivalent jobs in Illinois, (ii) is located in an
enterprise zone established pursuant to the Illinois
Enterprise Zone Act and (iii) is certified by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i)
and (ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all
such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability
or the liability as later amended, such excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit years. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, earlier
credit shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and

HB0804 Engrossed - 421 - LRB102 10881 SPS 16211 b
signs that are real property, but not including land
or improvements to real property that are not a
structural component of a building such as
landscaping, sewer lines, local access roads, fencing,
parking lots, and other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining coal
or fluorite, or in retailing, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or

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assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes
of this subsection (e) the term "mining" shall have the
same meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection
(e), the term "retailing" means the sale of tangible
personal property for use or consumption and not for
resale, or services rendered in conjunction with the sale
of tangible personal property for use or consumption and
not for resale. For purposes of this subsection (e),
"tangible personal property" has the same meaning as when
that term is used in the Retailers' Occupation Tax Act,
and, for taxable years ending after December 31, 2008,
does not include the generation, transmission, or
distribution of electricity.
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in Illinois by the taxpayer, the amount
of such increase shall be deemed property placed in
service on the date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to

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be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal
Property Tax Replacement Income Tax for such taxable year
shall be increased. Such increase shall be determined by
(i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation and, (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (7), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs
incurred pursuant to a binding contract entered into on or
before December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners
the credits to which the partnership is entitled under
this subsection (e) for the taxable year. A partner may
use the credit allocated to him or her under this

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paragraph only against the tax imposed in subsections (c)
and (d) of this Section. If the partnership makes that
election, those credits shall be allocated among the
partners in the partnership in accordance with the rules
set forth in Section 704(b) of the Internal Revenue Code,
and the rules promulgated under that Section, and the
allocated amount of the credits shall be allowed to the
partners for that taxable year. The partnership shall make
this election on its Personal Property Tax Replacement
Income Tax return for that taxable year. The election to
pass through the credits shall be irrevocable.
For taxable years ending on or after December 31,
2000, a partner that qualifies its partnership for a
subtraction under subparagraph (I) of paragraph (2) of
subsection (d) of Section 203 or a shareholder that
qualifies a Subchapter S corporation for a subtraction
under subparagraph (S) of paragraph (2) of subsection (b)
of Section 203 shall be allowed a credit under this
subsection (e) equal to its share of the credit earned
under this subsection (e) during the taxable year by the
partnership or Subchapter S corporation, determined in
accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. This
paragraph is exempt from the provisions of Section 250.
(f) Investment credit; Enterprise Zone; River Edge

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Redevelopment Zone.
(1) A taxpayer shall be allowed a credit against the
tax imposed by subsections (a) and (b) of this Section for
investment in qualified property which is placed in
service in an Enterprise Zone created pursuant to the
Illinois Enterprise Zone Act or, for property placed in
service on or after July 1, 2006, a River Edge
Redevelopment Zone established pursuant to the River Edge
Redevelopment Zone Act. For partners, shareholders of
Subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income
taxation, there shall be allowed a credit under this
subsection (f) to be determined in accordance with the
determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the
Internal Revenue Code. The credit shall be .5% of the
basis for such property. The credit shall be available
only in the taxable year in which the property is placed in
service in the Enterprise Zone or River Edge Redevelopment
Zone and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. For
tax years ending on or after December 31, 1985, the credit
shall be allowed for the tax year in which the property is
placed in service, or, if the amount of the credit exceeds

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the tax liability for that year, whether it exceeds the
original liability or the liability as later amended, such
excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest
year for which there is a liability. If there is credit
from more than one tax year that is available to offset a
liability, the credit accruing first in time shall be
applied first.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(f);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer; and
(E) has not been previously used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (f) or
subsection (e).
(3) The basis of qualified property shall be the basis

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used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside the Enterprise
Zone or River Edge Redevelopment Zone within 48 months
after being placed in service, the tax imposed under
subsections (a) and (b) of this Section for such taxable
year shall be increased. Such increase shall be determined
by (i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be

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deemed a disposition of qualified property to the extent
of such reduction.
(7) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in
service on or after July 1, 2006, and the taxpayer's base
employment within Illinois has increased by 1% or more
over the preceding year as determined by the taxpayer's
employment records filed with the Illinois Department of
Employment Security. Taxpayers who are new to Illinois
shall be deemed to have met the 1% growth in base
employment for the first year in which they file
employment records with the Illinois Department of
Employment Security. If, in any year, the increase in base
employment within Illinois over the preceding year is less
than 1%, the additional credit shall be limited to that
percentage times a fraction, the numerator of which is
0.5% and the denominator of which is 1%, but shall not
exceed 0.5%.
(8) For taxable years beginning on or after January 1,
2021, there shall be allowed an Enterprise Zone
construction jobs credit against the taxes imposed under
subsections (a) and (b) of this Section as provided in
Section 13 of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's

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liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may
be carried forward and applied against the taxpayer's
liability in succeeding calendar years in the same manner
provided under paragraph (4) of Section 211 of this Act.
The credit or credits shall be applied to the earliest
year for which there is a tax liability. If there are
credits from more than one taxable year that are available
to offset a liability, the earlier credit shall be applied
first.
For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
the purposes of federal and State income taxation, there
shall be allowed a credit under this Section to be
determined in accordance with the determination of income
and distributive share of income under Sections 702 and
704 and Subchapter S of the Internal Revenue Code.
The total aggregate amount of credits awarded under
the Blue Collar Jobs Act (Article 20 of Public Act 101-9
this amendatory Act of the 101st General Assembly) shall
not exceed $20,000,000 in any State fiscal year.
This paragraph (8) is exempt from the provisions of
Section 250.
(g) (Blank).
(h) Investment credit; High Impact Business.

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(1) Subject to subsections (b) and (b-5) of Section
5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
be allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact
Business. The credit shall be .5% of the basis for such
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the
time authorized in subsection (b-5) of the Illinois
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
Act, and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. The
credit applicable to such investments shall be taken in
the taxable year in which such investments have been
completed. The credit for additional investments beyond
the minimum investment by a designated high impact
business authorized under subdivision (a)(3)(A) of Section
5.5 of the Illinois Enterprise Zone Act shall be available
only in the taxable year in which the property is placed in
service and shall not be allowed to the extent that it

HB0804 Engrossed - 431 - LRB102 10881 SPS 16211 b
would reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. For
tax years ending on or after December 31, 1987, the credit
shall be allowed for the tax year in which the property is
placed in service, or, if the amount of the credit exceeds
the tax liability for that year, whether it exceeds the
original liability or the liability as later amended, such
excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest
year for which there is a liability. If there is credit
from more than one tax year that is available to offset a
liability, the credit accruing first in time shall be
applied first.
Changes made in this subdivision (h)(1) by Public Act
88-670 restore changes made by Public Act 85-1182 and
reflect existing law.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(h);
(C) is acquired by purchase as defined in Section

HB0804 Engrossed - 432 - LRB102 10881 SPS 16211 b
179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone
Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in a federally designated Foreign Trade
Zone or Sub-Zone located in Illinois by the taxpayer, the
amount of such increase shall be deemed property placed in
service on the date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year ending on or before
December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed
under subsections (a) and (b) of this Section for such
taxable year shall be increased. Such increase shall be
determined by (i) recomputing the investment credit which
would have been allowed for the year in which credit for
such property was originally allowed by eliminating such

HB0804 Engrossed - 433 - LRB102 10881 SPS 16211 b
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) Beginning with tax years ending after December 31,
1996, if a taxpayer qualifies for the credit under this
subsection (h) and thereby is granted a tax abatement and
the taxpayer relocates its entire facility in violation of
the explicit terms and length of the contract under
Section 18-183 of the Property Tax Code, the tax imposed
under subsections (a) and (b) of this Section shall be
increased for the taxable year in which the taxpayer
relocated its facility by an amount equal to the amount of
credit received by the taxpayer under this subsection (h).
(h-5) High Impact Business construction constructions jobs
credit. For taxable years beginning on or after January 1,
2021, there shall also be allowed a High Impact Business
construction jobs credit against the tax imposed under
subsections (a) and (b) of this Section as provided in
subsections (i) and (j) of Section 5.5 of the Illinois
Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or

HB0804 Engrossed - 434 - LRB102 10881 SPS 16211 b
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability
in succeeding calendar years in the manner provided under
paragraph (4) of Section 211 of this Act. The credit or credits
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable
year that are available to offset a liability, the earlier
credit shall be applied first.
For partners, shareholders of Subchapter S corporations,
and owners of limited liability companies, if the liability
company is treated as a partnership for the purposes of
federal and State income taxation, there shall be allowed a
credit under this Section to be determined in accordance with
the determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the Internal
Revenue Code.
The total aggregate amount of credits awarded under the
Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
amendatory Act of the 101st General Assembly) shall not exceed
$20,000,000 in any State fiscal year.
This subsection (h-5) is exempt from the provisions of
Section 250.
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a)
and (b) of this Section for the tax imposed by subsections (c)

HB0804 Engrossed - 435 - LRB102 10881 SPS 16211 b
and (d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections
(a) and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by
subsections (a) and (b) of the 5 taxable years following the
excess credit year, provided that no credit may be carried
forward to any year ending on or after December 31, 2003. This
credit shall be applied first to the earliest year for which
there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability the earliest credit arising under this
subsection shall be applied first.
If, during any taxable year ending on or after December
31, 1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax

HB0804 Engrossed - 436 - LRB102 10881 SPS 16211 b
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such
taxable year to reduce the amount of credit claimed.
(j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed
outside of Illinois by a taxpayer, for educational or
vocational training in semi-technical or technical fields or
semi-skilled or skilled fields, which were deducted from gross
income in the computation of taxable income. The credit
against the tax imposed by subsections (a) and (b) shall be
1.6% of such training expenses. For partners, shareholders of
subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income taxation,
there shall be allowed a credit under this subsection (j) to be
determined in accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
subchapter S of the Internal Revenue Code.
Any credit allowed under this subsection which is unused
in the year the credit is earned may be carried forward to each
of the 5 taxable years following the year for which the credit

HB0804 Engrossed - 437 - LRB102 10881 SPS 16211 b
is first computed until it is used. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from
more than one tax year that is available to offset a liability,
the earliest credit arising under this subsection shall be
applied first. No carryforward credit may be claimed in any
tax year ending on or after December 31, 2003.
(k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2027, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a)
and (b) of this Section for increasing research activities in
this State. The credit allowed against the tax imposed by
subsections (a) and (b) shall be equal to 6 1/2% of the
qualifying expenditures for increasing research activities in
this State. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if
the liability company is treated as a partnership for purposes
of federal and State income taxation, there shall be allowed a
credit under this subsection to be determined in accordance
with the determination of income and distributive share of
income under Sections 702 and 704 and subchapter S of the
Internal Revenue Code.
For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal

HB0804 Engrossed - 438 - LRB102 10881 SPS 16211 b
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures
for increasing research activities in this State" means the
excess of qualifying expenditures for the taxable year in
which incurred over qualifying expenditures for the base
period, "qualifying expenditures for the base period" means
the average of the qualifying expenditures for each year in
the base period, and "base period" means the 3 taxable years
immediately preceding the taxable year for which the
determination is being made.
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever
occurs first; provided that no credit earned in a tax year
ending prior to December 31, 2003 may be carried forward to any
year ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest
year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused

HB0804 Engrossed - 439 - LRB102 10881 SPS 16211 b
credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
No inference shall be drawn from Public Act 91-644 this
amendatory Act of the 91st General Assembly in construing this
Section for taxable years beginning before January 1, 1999.
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,
2004 and ending prior to January 1, 2027, including, but not
limited to, the period beginning on January 1, 2016 and ending
on July 6, 2017 (the effective date of Public Act 100-22) this
amendatory Act of the 100th General Assembly. All actions
taken in reliance on the continuation of the credit under this
subsection (k) by any taxpayer are hereby validated.
(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997 and
on or before December 31, 2001, a taxpayer shall be
allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for certain amounts paid for
unreimbursed eligible remediation costs, as specified in
this subsection. For purposes of this Section,
"unreimbursed eligible remediation costs" means costs
approved by the Illinois Environmental Protection Agency

HB0804 Engrossed - 440 - LRB102 10881 SPS 16211 b
("Agency") under Section 58.14 of the Environmental
Protection Act that were paid in performing environmental
remediation at a site for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. After the Pollution
Control Board rules are adopted pursuant to the Illinois
Administrative Procedure Act for the administration and
enforcement of Section 58.9 of the Environmental
Protection Act, determinations as to credit availability
for purposes of this Section shall be made consistent with
those rules. For purposes of this Section, "taxpayer"
includes a person whose tax attributes the taxpayer has
succeeded to under Section 381 of the Internal Revenue
Code and "related party" includes the persons disallowed a
deduction for losses by paragraphs (b), (c), and (f)(1) of
Section 267 of the Internal Revenue Code by virtue of
being a related taxpayer, as well as any of its partners.
The credit allowed against the tax imposed by subsections

HB0804 Engrossed - 441 - LRB102 10881 SPS 16211 b
(a) and (b) shall be equal to 25% of the unreimbursed
eligible remediation costs in excess of $100,000 per site,
except that the $100,000 threshold shall not apply to any
site contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year
with a maximum total of $150,000 per site. For partners
and shareholders of subchapter S corporations, there shall
be allowed a credit under this subsection to be determined
in accordance with the determination of income and
distributive share of income under Sections 702 and 704
and subchapter S of the Internal Revenue Code.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. The
term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year
for which there is a liability. If there is a credit under
this subsection from more than one tax year that is
available to offset a liability, the earliest credit
arising under this subsection shall be applied first. A
credit allowed under this subsection may be sold to a

HB0804 Engrossed - 442 - LRB102 10881 SPS 16211 b
buyer as part of a sale of all or part of the remediation
site for which the credit was granted. The purchaser of a
remediation site and the tax credit shall succeed to the
unused credit and remaining carry-forward period of the
seller. To perfect the transfer, the assignor shall record
the transfer in the chain of title for the site and provide
written notice to the Director of the Illinois Department
of Revenue of the assignor's intent to sell the
remediation site and the amount of the tax credit to be
transferred as a portion of the sale. In no event may a
credit be transferred to any taxpayer if the taxpayer or a
related party would not be eligible under the provisions
of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the
custodian of one or more qualifying pupils shall be allowed a
credit against the tax imposed by subsections (a) and (b) of
this Section for qualified education expenses incurred on
behalf of the qualifying pupils. The credit shall be equal to
25% of qualified education expenses, but in no event may the
total credit under this subsection claimed by a family that is
the custodian of qualifying pupils exceed (i) $500 for tax
years ending prior to December 31, 2017, and (ii) $750 for tax

HB0804 Engrossed - 443 - LRB102 10881 SPS 16211 b
years ending on or after December 31, 2017. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the
provisions of Section 250 of this Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten
through twelfth grade education program at any school, as
defined in this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,

HB0804 Engrossed - 444 - LRB102 10881 SPS 16211 b
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify
for the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31,
2006, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of this Section for
certain amounts paid for unreimbursed eligible remediation
costs, as specified in this subsection. For purposes of
this Section, "unreimbursed eligible remediation costs"
means costs approved by the Illinois Environmental
Protection Agency ("Agency") under Section 58.14a of the
Environmental Protection Act that were paid in performing
environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or

HB0804 Engrossed - 445 - LRB102 10881 SPS 16211 b
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. Determinations as to
credit availability for purposes of this Section shall be
made consistent with rules adopted by the Pollution
Control Board pursuant to the Illinois Administrative
Procedure Act for the administration and enforcement of
Section 58.9 of the Environmental Protection Act. For
purposes of this Section, "taxpayer" includes a person
whose tax attributes the taxpayer has succeeded to under
Section 381 of the Internal Revenue Code and "related
party" includes the persons disallowed a deduction for
losses by paragraphs (b), (c), and (f)(1) of Section 267
of the Internal Revenue Code by virtue of being a related
taxpayer, as well as any of its partners. The credit
allowed against the tax imposed by subsections (a) and (b)
shall be equal to 25% of the unreimbursed eligible
remediation costs in excess of $100,000 per site.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. This
credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available
to offset a liability, the earliest credit arising under

HB0804 Engrossed - 446 - LRB102 10881 SPS 16211 b
this subsection shall be applied first. A credit allowed
under this subsection may be sold to a buyer as part of a
sale of all or part of the remediation site for which the
credit was granted. The purchaser of a remediation site
and the tax credit shall succeed to the unused credit and
remaining carry-forward period of the seller. To perfect
the transfer, the assignor shall record the transfer in
the chain of title for the site and provide written notice
to the Director of the Illinois Department of Revenue of
the assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(o) For each of taxable years during the Compassionate Use
of Medical Cannabis Program, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles of
an organization registrant under the Compassionate Use of
Medical Cannabis Program Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The

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surcharge imposed does not apply if:
(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Program Act;
(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners

HB0804 Engrossed - 448 - LRB102 10881 SPS 16211 b
of the registration when the registration was issued;
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in
which no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.
(Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19; 101-31,
eff. 6-28-19; 101-207, eff. 8-2-19; 101-363, eff. 8-9-19;
revised 11-18-20.)
(Text of Section with the changes made by P.A. 101-8,
which did not take effect (see Section 99 of P.A. 101-8))
Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):

HB0804 Engrossed - 449 - LRB102 10881 SPS 16211 b
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount
equal to 2 1/2% of the taxpayer's net income for the
taxable year.
(2) In the case of an individual, trust or estate, for
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June
30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior
to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2011,
and ending prior to January 1, 2015, an amount equal to 5%
of the taxpayer's net income for the taxable year.

HB0804 Engrossed - 450 - LRB102 10881 SPS 16211 b
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section
202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%
of the taxpayer's net income for the taxable year.
(5.3) In the case of an individual, trust, or estate,
for taxable years beginning prior to July 1, 2017, and
ending after June 30, 2017, an amount equal to the sum of
(i) 3.75% of the taxpayer's net income for the period
prior to July 1, 2017, as calculated under Section 202.5,
and (ii) 4.95% of the taxpayer's net income for the period
after June 30, 2017, as calculated under Section 202.5.
(5.4) In the case of an individual, trust, or estate,
for taxable years beginning on or after July 1, 2017 and
beginning prior to January 1, 2021, an amount equal to
4.95% of the taxpayer's net income for the taxable year.
(5.5) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2021,
an amount calculated under the rate structure set forth in

HB0804 Engrossed - 451 - LRB102 10881 SPS 16211 b
Section 201.1.
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of the
taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1,
1989, as calculated under Section 202.3, and (ii) 4.8% of
the taxpayer's net income for the period after June 30,
1989, as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net
income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to
January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years
beginning on or after January 1, 2011, and ending prior to
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.

HB0804 Engrossed - 452 - LRB102 10881 SPS 16211 b
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of
the taxpayer's net income for the period prior to January
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to
July 1, 2017, an amount equal to 5.25% of the taxpayer's
net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017, and ending after June 30,
2017, an amount equal to the sum of (i) 5.25% of the
taxpayer's net income for the period prior to July 1,
2017, as calculated under Section 202.5, and (ii) 7% of
the taxpayer's net income for the period after June 30,
2017, as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017 and beginning prior to
January 1, 2021, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(15) In the case of a corporation, for taxable years
beginning on or after January 1, 2021, an amount equal to
7.99% of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the

HB0804 Engrossed - 453 - LRB102 10881 SPS 16211 b
provisions of Section 201.5.
(b-5) Surcharge; sale or exchange of assets, properties,
and intangibles of organization gaming licensees. For each of
taxable years 2019 through 2027, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles (i)
of an organization licensee under the Illinois Horse Racing
Act of 1975 and (ii) of an organization gaming licensee under
the Illinois Gambling Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed shall not apply if:
(1) the organization gaming license, organization
license, or racetrack property is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
licensee or the substantial owners of the initial
licensee;
(B) cancellation, revocation, or termination of
any such license by the Illinois Gaming Board or the
Illinois Racing Board;
(C) a determination by the Illinois Gaming Board
that transfer of the license is in the best interests
of Illinois gaming;

HB0804 Engrossed - 454 - LRB102 10881 SPS 16211 b
(D) the death of an owner of the equity interest in
a licensee;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the license when the license was issued; or
(2) the controlling interest in the organization
gaming license, organization license, or racetrack
property is transferred in a transaction to lineal
descendants in which no gain or loss is recognized or as a
result of a transaction in accordance with Section 351 of
the Internal Revenue Code in which no gain or loss is
recognized; or
(3) live horse racing was not conducted in 2010 at a
racetrack located within 3 miles of the Mississippi River
under a license issued pursuant to the Illinois Horse
Racing Act of 1975.
The transfer of an organization gaming license,
organization license, or racetrack property by a person other
than the initial licensee to receive the organization gaming
license is not subject to a surcharge. The Department shall
adopt rules necessary to implement and administer this

HB0804 Engrossed - 455 - LRB102 10881 SPS 16211 b
subsection.
(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or
receiving income in or as a resident of this State. The
Personal Property Tax Replacement Income Tax shall be in
addition to the income tax imposed by subsections (a) and (b)
of this Section and in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.

HB0804 Engrossed - 456 - LRB102 10881 SPS 16211 b
(d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on
such income by the foreign insurer's state of domicile. For
the purposes of this subsection (d-1), an inter-affiliate
includes a mutual insurer under common management.
(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections

HB0804 Engrossed - 457 - LRB102 10881 SPS 16211 b
(b) and (d) be reduced below the rate at which the sum of:
(A) the total amount of tax imposed on such
foreign insurer under this Act for a taxable year, net
of all credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of
the Illinois Insurance Code, the fire insurance
company tax imposed by Section 12 of the Fire
Investigation Act, and the fire department taxes
imposed under Section 11-10-1 of the Illinois
Municipal Code,
equals 1.25% for taxable years ending prior to December
31, 2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for
the taxable year, as described by subsection (1) of
Section 409 of the Illinois Insurance Code. This paragraph
will in no event increase the rates imposed under
subsections (b) and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates
imposed by subsection (b) and only after the tax imposed
by subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.

HB0804 Engrossed - 458 - LRB102 10881 SPS 16211 b
(e) Investment credit. A taxpayer shall be allowed a
credit against the Personal Property Tax Replacement Income
Tax for investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service
during the taxable year, provided such property is placed
in service on or after July 1, 1984. There shall be allowed
an additional credit equal to .5% of the basis of
qualified property placed in service during the taxable
year, provided such property is placed in service on or
after July 1, 1986, and the taxpayer's base employment
within Illinois has increased by 1% or more over the
preceding year as determined by the taxpayer's employment
records filed with the Illinois Department of Employment
Security. Taxpayers who are new to Illinois shall be
deemed to have met the 1% growth in base employment for the
first year in which they file employment records with the
Illinois Department of Employment Security. The provisions
added to this Section by Public Act 85-1200 (and restored
by Public Act 87-895) shall be construed as declaratory of
existing law and not as a new enactment. If, in any year,
the increase in base employment within Illinois over the
preceding year is less than 1%, the additional credit
shall be limited to that percentage times a fraction, the
numerator of which is .5% and the denominator of which is
1%, but shall not exceed .5%. The investment credit shall

HB0804 Engrossed - 459 - LRB102 10881 SPS 16211 b
not be allowed to the extent that it would reduce a
taxpayer's liability in any tax year below zero, nor may
any credit for qualified property be allowed for any year
other than the year in which the property was placed in
service in Illinois. For tax years ending on or after
December 31, 1987, and on or before December 31, 1988, the
credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether it
exceeds the original liability or the liability as later
amended, such excess may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit years if the taxpayer (i) makes investments
which cause the creation of a minimum of 2,000 full-time
equivalent jobs in Illinois, (ii) is located in an
enterprise zone established pursuant to the Illinois
Enterprise Zone Act and (iii) is certified by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i)
and (ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all
such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,

HB0804 Engrossed - 460 - LRB102 10881 SPS 16211 b
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability
or the liability as later amended, such excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit years. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, earlier
credit shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and
signs that are real property, but not including land
or improvements to real property that are not a
structural component of a building such as
landscaping, sewer lines, local access roads, fencing,
parking lots, and other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is

HB0804 Engrossed - 461 - LRB102 10881 SPS 16211 b
primarily engaged in manufacturing, or in mining coal
or fluorite, or in retailing, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes
of this subsection (e) the term "mining" shall have the
same meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection
(e), the term "retailing" means the sale of tangible
personal property for use or consumption and not for
resale, or services rendered in conjunction with the sale
of tangible personal property for use or consumption and
not for resale. For purposes of this subsection (e),
"tangible personal property" has the same meaning as when
that term is used in the Retailers' Occupation Tax Act,
and, for taxable years ending after December 31, 2008,

HB0804 Engrossed - 462 - LRB102 10881 SPS 16211 b
does not include the generation, transmission, or
distribution of electricity.
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in Illinois by the taxpayer, the amount
of such increase shall be deemed property placed in
service on the date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal
Property Tax Replacement Income Tax for such taxable year
shall be increased. Such increase shall be determined by
(i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation and, (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (7), a
reduction of the basis of qualified property resulting

HB0804 Engrossed - 463 - LRB102 10881 SPS 16211 b
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs
incurred pursuant to a binding contract entered into on or
before December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners
the credits to which the partnership is entitled under
this subsection (e) for the taxable year. A partner may
use the credit allocated to him or her under this
paragraph only against the tax imposed in subsections (c)
and (d) of this Section. If the partnership makes that
election, those credits shall be allocated among the
partners in the partnership in accordance with the rules
set forth in Section 704(b) of the Internal Revenue Code,
and the rules promulgated under that Section, and the
allocated amount of the credits shall be allowed to the
partners for that taxable year. The partnership shall make
this election on its Personal Property Tax Replacement
Income Tax return for that taxable year. The election to
pass through the credits shall be irrevocable.
For taxable years ending on or after December 31,
2000, a partner that qualifies its partnership for a

HB0804 Engrossed - 464 - LRB102 10881 SPS 16211 b
subtraction under subparagraph (I) of paragraph (2) of
subsection (d) of Section 203 or a shareholder that
qualifies a Subchapter S corporation for a subtraction
under subparagraph (S) of paragraph (2) of subsection (b)
of Section 203 shall be allowed a credit under this
subsection (e) equal to its share of the credit earned
under this subsection (e) during the taxable year by the
partnership or Subchapter S corporation, determined in
accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. This
paragraph is exempt from the provisions of Section 250.
(f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone; Clean Energy Empowerment Zone.
(1) A taxpayer shall be allowed a credit against the
tax imposed by subsections (a) and (b) of this Section for
investment in qualified property which is placed in
service in an Enterprise Zone created pursuant to the
Illinois Enterprise Zone Act or, for property placed in
service on or after July 1, 2006, a River Edge
Redevelopment Zone established pursuant to the River Edge
Redevelopment Zone Act, or for investment in renewable
energy enterprises located in Clean Energy Empowerment
Zones created pursuant to the Energy Community
Reinvestment Act. For partners, shareholders of Subchapter
S corporations, and owners of limited liability companies,

HB0804 Engrossed - 465 - LRB102 10881 SPS 16211 b
if the liability company is treated as a partnership for
purposes of federal and State income taxation, there shall
be allowed a credit under this subsection (f) to be
determined in accordance with the determination of income
and distributive share of income under Sections 702 and
704 and Subchapter S of the Internal Revenue Code. The
credit shall be .5% of the basis for such property. The
credit shall be available only in the taxable year in
which the property is placed in service in the Enterprise
Zone or River Edge Redevelopment Zone and shall not be
allowed to the extent that it would reduce a taxpayer's
liability for the tax imposed by subsections (a) and (b)
of this Section to below zero. For tax years ending on or
after December 31, 1985, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability
or the liability as later amended, such excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit year. The credit
shall be applied to the earliest year for which there is a
liability. If there is credit from more than one tax year
that is available to offset a liability, the credit
accruing first in time shall be applied first.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including

HB0804 Engrossed - 466 - LRB102 10881 SPS 16211 b
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(f);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer; and
(E) has not been previously used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (f) or
subsection (e).
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year, any property ceases to

HB0804 Engrossed - 467 - LRB102 10881 SPS 16211 b
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside the Enterprise
Zone or River Edge Redevelopment Zone within 48 months
after being placed in service, the tax imposed under
subsections (a) and (b) of this Section for such taxable
year shall be increased. Such increase shall be determined
by (i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in
service on or after July 1, 2006, and the taxpayer's base
employment within Illinois has increased by 1% or more
over the preceding year as determined by the taxpayer's
employment records filed with the Illinois Department of
Employment Security. Taxpayers who are new to Illinois

HB0804 Engrossed - 468 - LRB102 10881 SPS 16211 b
shall be deemed to have met the 1% growth in base
employment for the first year in which they file
employment records with the Illinois Department of
Employment Security. If, in any year, the increase in base
employment within Illinois over the preceding year is less
than 1%, the additional credit shall be limited to that
percentage times a fraction, the numerator of which is
0.5% and the denominator of which is 1%, but shall not
exceed 0.5%.
(8) For taxable years beginning on or after January 1,
2021, there shall be allowed an Enterprise Zone
construction jobs credit against the taxes imposed under
subsections (a) and (b) of this Section as provided in
Section 13 of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may
be carried forward and applied against the taxpayer's
liability in succeeding calendar years in the same manner
provided under paragraph (4) of Section 211 of this Act.
The credit or credits shall be applied to the earliest
year for which there is a tax liability. If there are
credits from more than one taxable year that are available
to offset a liability, the earlier credit shall be applied
first.
For partners, shareholders of Subchapter S

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corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
the purposes of federal and State income taxation, there
shall be allowed a credit under this Section to be
determined in accordance with the determination of income
and distributive share of income under Sections 702 and
704 and Subchapter S of the Internal Revenue Code.
The total aggregate amount of credits awarded under
the Blue Collar Jobs Act (Article 20 of Public Act 101-9
this amendatory Act of the 101st General Assembly) shall
not exceed $20,000,000 in any State fiscal year.
This paragraph (8) is exempt from the provisions of
Section 250.
(g) (Blank).
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section
5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
be allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact
Business. The credit shall be .5% of the basis for such
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the

HB0804 Engrossed - 470 - LRB102 10881 SPS 16211 b
time authorized in subsection (b-5) of the Illinois
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
Act, and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. The
credit applicable to such investments shall be taken in
the taxable year in which such investments have been
completed. The credit for additional investments beyond
the minimum investment by a designated high impact
business authorized under subdivision (a)(3)(A) of Section
5.5 of the Illinois Enterprise Zone Act shall be available
only in the taxable year in which the property is placed in
service and shall not be allowed to the extent that it
would reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. For
tax years ending on or after December 31, 1987, the credit
shall be allowed for the tax year in which the property is
placed in service, or, if the amount of the credit exceeds
the tax liability for that year, whether it exceeds the
original liability or the liability as later amended, such
excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest
year for which there is a liability. If there is credit

HB0804 Engrossed - 471 - LRB102 10881 SPS 16211 b
from more than one tax year that is available to offset a
liability, the credit accruing first in time shall be
applied first.
Changes made in this subdivision (h)(1) by Public Act
88-670 restore changes made by Public Act 85-1182 and
reflect existing law.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(h);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone
Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in a federally designated Foreign Trade
Zone or Sub-Zone located in Illinois by the taxpayer, the

HB0804 Engrossed - 472 - LRB102 10881 SPS 16211 b
amount of such increase shall be deemed property placed in
service on the date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year ending on or before
December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed
under subsections (a) and (b) of this Section for such
taxable year shall be increased. Such increase shall be
determined by (i) recomputing the investment credit which
would have been allowed for the year in which credit for
such property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) Beginning with tax years ending after December 31,
1996, if a taxpayer qualifies for the credit under this
subsection (h) and thereby is granted a tax abatement and
the taxpayer relocates its entire facility in violation of

HB0804 Engrossed - 473 - LRB102 10881 SPS 16211 b
the explicit terms and length of the contract under
Section 18-183 of the Property Tax Code, the tax imposed
under subsections (a) and (b) of this Section shall be
increased for the taxable year in which the taxpayer
relocated its facility by an amount equal to the amount of
credit received by the taxpayer under this subsection (h).
(h-5) High Impact Business construction constructions jobs
credit. For taxable years beginning on or after January 1,
2021, there shall also be allowed a High Impact Business
construction jobs credit against the tax imposed under
subsections (a) and (b) of this Section as provided in
subsections (i) and (j) of Section 5.5 of the Illinois
Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability
in succeeding calendar years in the manner provided under
paragraph (4) of Section 211 of this Act. The credit or credits
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable
year that are available to offset a liability, the earlier
credit shall be applied first.
For partners, shareholders of Subchapter S corporations,
and owners of limited liability companies, if the liability
company is treated as a partnership for the purposes of

HB0804 Engrossed - 474 - LRB102 10881 SPS 16211 b
federal and State income taxation, there shall be allowed a
credit under this Section to be determined in accordance with
the determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the Internal
Revenue Code.
The total aggregate amount of credits awarded under the
Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
amendatory Act of the 101st General Assembly) shall not exceed
$20,000,000 in any State fiscal year.
This subsection (h-5) is exempt from the provisions of
Section 250.
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a)
and (b) of this Section for the tax imposed by subsections (c)
and (d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections
(a) and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried

HB0804 Engrossed - 475 - LRB102 10881 SPS 16211 b
forward and applied to the tax liability imposed by
subsections (a) and (b) of the 5 taxable years following the
excess credit year, provided that no credit may be carried
forward to any year ending on or after December 31, 2003. This
credit shall be applied first to the earliest year for which
there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability the earliest credit arising under this
subsection shall be applied first.
If, during any taxable year ending on or after December
31, 1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such
taxable year to reduce the amount of credit claimed.
(j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed
outside of Illinois by a taxpayer, for educational or

HB0804 Engrossed - 476 - LRB102 10881 SPS 16211 b
vocational training in semi-technical or technical fields or
semi-skilled or skilled fields, which were deducted from gross
income in the computation of taxable income. The credit
against the tax imposed by subsections (a) and (b) shall be
1.6% of such training expenses. For partners, shareholders of
subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income taxation,
there shall be allowed a credit under this subsection (j) to be
determined in accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
subchapter S of the Internal Revenue Code.
Any credit allowed under this subsection which is unused
in the year the credit is earned may be carried forward to each
of the 5 taxable years following the year for which the credit
is first computed until it is used. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from
more than one tax year that is available to offset a liability,
the earliest credit arising under this subsection shall be
applied first. No carryforward credit may be claimed in any
tax year ending on or after December 31, 2003.
(k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2027, a taxpayer shall be

HB0804 Engrossed - 477 - LRB102 10881 SPS 16211 b
allowed a credit against the tax imposed by subsections (a)
and (b) of this Section for increasing research activities in
this State. The credit allowed against the tax imposed by
subsections (a) and (b) shall be equal to 6 1/2% of the
qualifying expenditures for increasing research activities in
this State. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if
the liability company is treated as a partnership for purposes
of federal and State income taxation, there shall be allowed a
credit under this subsection to be determined in accordance
with the determination of income and distributive share of
income under Sections 702 and 704 and subchapter S of the
Internal Revenue Code.
For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures
for increasing research activities in this State" means the
excess of qualifying expenditures for the taxable year in
which incurred over qualifying expenditures for the base
period, "qualifying expenditures for the base period" means
the average of the qualifying expenditures for each year in
the base period, and "base period" means the 3 taxable years
immediately preceding the taxable year for which the
determination is being made.

HB0804 Engrossed - 478 - LRB102 10881 SPS 16211 b
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever
occurs first; provided that no credit earned in a tax year
ending prior to December 31, 2003 may be carried forward to any
year ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest
year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused
credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
No inference shall be drawn from Public Act 91-644 this
amendatory Act of the 91st General Assembly in construing this
Section for taxable years beginning before January 1, 1999.
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,

HB0804 Engrossed - 479 - LRB102 10881 SPS 16211 b
2004 and ending prior to January 1, 2027, including, but not
limited to, the period beginning on January 1, 2016 and ending
on July 6, 2017 (the effective date of Public Act 100-22) this
amendatory Act of the 100th General Assembly. All actions
taken in reliance on the continuation of the credit under this
subsection (k) by any taxpayer are hereby validated.
(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997 and
on or before December 31, 2001, a taxpayer shall be
allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for certain amounts paid for
unreimbursed eligible remediation costs, as specified in
this subsection. For purposes of this Section,
"unreimbursed eligible remediation costs" means costs
approved by the Illinois Environmental Protection Agency
("Agency") under Section 58.14 of the Environmental
Protection Act that were paid in performing environmental
remediation at a site for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the

HB0804 Engrossed - 480 - LRB102 10881 SPS 16211 b
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. After the Pollution
Control Board rules are adopted pursuant to the Illinois
Administrative Procedure Act for the administration and
enforcement of Section 58.9 of the Environmental
Protection Act, determinations as to credit availability
for purposes of this Section shall be made consistent with
those rules. For purposes of this Section, "taxpayer"
includes a person whose tax attributes the taxpayer has
succeeded to under Section 381 of the Internal Revenue
Code and "related party" includes the persons disallowed a
deduction for losses by paragraphs (b), (c), and (f)(1) of
Section 267 of the Internal Revenue Code by virtue of
being a related taxpayer, as well as any of its partners.
The credit allowed against the tax imposed by subsections
(a) and (b) shall be equal to 25% of the unreimbursed
eligible remediation costs in excess of $100,000 per site,
except that the $100,000 threshold shall not apply to any
site contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year
with a maximum total of $150,000 per site. For partners
and shareholders of subchapter S corporations, there shall
be allowed a credit under this subsection to be determined
in accordance with the determination of income and

HB0804 Engrossed - 481 - LRB102 10881 SPS 16211 b
distributive share of income under Sections 702 and 704
and subchapter S of the Internal Revenue Code.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. The
term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year
for which there is a liability. If there is a credit under
this subsection from more than one tax year that is
available to offset a liability, the earliest credit
arising under this subsection shall be applied first. A
credit allowed under this subsection may be sold to a
buyer as part of a sale of all or part of the remediation
site for which the credit was granted. The purchaser of a
remediation site and the tax credit shall succeed to the
unused credit and remaining carry-forward period of the
seller. To perfect the transfer, the assignor shall record
the transfer in the chain of title for the site and provide
written notice to the Director of the Illinois Department
of Revenue of the assignor's intent to sell the
remediation site and the amount of the tax credit to be
transferred as a portion of the sale. In no event may a
credit be transferred to any taxpayer if the taxpayer or a

HB0804 Engrossed - 482 - LRB102 10881 SPS 16211 b
related party would not be eligible under the provisions
of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the
custodian of one or more qualifying pupils shall be allowed a
credit against the tax imposed by subsections (a) and (b) of
this Section for qualified education expenses incurred on
behalf of the qualifying pupils. The credit shall be equal to
25% of qualified education expenses, but in no event may the
total credit under this subsection claimed by a family that is
the custodian of qualifying pupils exceed (i) $500 for tax
years ending prior to December 31, 2017, and (ii) $750 for tax
years ending on or after December 31, 2017. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the
provisions of Section 250 of this Act.
For purposes of this subsection:

HB0804 Engrossed - 483 - LRB102 10881 SPS 16211 b
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten
through twelfth grade education program at any school, as
defined in this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify
for the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31,
2006, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of this Section for

HB0804 Engrossed - 484 - LRB102 10881 SPS 16211 b
certain amounts paid for unreimbursed eligible remediation
costs, as specified in this subsection. For purposes of
this Section, "unreimbursed eligible remediation costs"
means costs approved by the Illinois Environmental
Protection Agency ("Agency") under Section 58.14a of the
Environmental Protection Act that were paid in performing
environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. Determinations as to
credit availability for purposes of this Section shall be
made consistent with rules adopted by the Pollution
Control Board pursuant to the Illinois Administrative
Procedure Act for the administration and enforcement of
Section 58.9 of the Environmental Protection Act. For
purposes of this Section, "taxpayer" includes a person
whose tax attributes the taxpayer has succeeded to under
Section 381 of the Internal Revenue Code and "related

HB0804 Engrossed - 485 - LRB102 10881 SPS 16211 b
party" includes the persons disallowed a deduction for
losses by paragraphs (b), (c), and (f)(1) of Section 267
of the Internal Revenue Code by virtue of being a related
taxpayer, as well as any of its partners. The credit
allowed against the tax imposed by subsections (a) and (b)
shall be equal to 25% of the unreimbursed eligible
remediation costs in excess of $100,000 per site.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. This
credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available
to offset a liability, the earliest credit arising under
this subsection shall be applied first. A credit allowed
under this subsection may be sold to a buyer as part of a
sale of all or part of the remediation site for which the
credit was granted. The purchaser of a remediation site
and the tax credit shall succeed to the unused credit and
remaining carry-forward period of the seller. To perfect
the transfer, the assignor shall record the transfer in
the chain of title for the site and provide written notice
to the Director of the Illinois Department of Revenue of
the assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of

HB0804 Engrossed - 486 - LRB102 10881 SPS 16211 b
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(o) For each of taxable years during the Compassionate Use
of Medical Cannabis Program, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles of
an organization registrant under the Compassionate Use of
Medical Cannabis Program Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed does not apply if:
(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public

HB0804 Engrossed - 487 - LRB102 10881 SPS 16211 b
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Program Act;
(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the registration when the registration was issued;
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in
which no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.
(Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for
effective date; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;

HB0804 Engrossed - 488 - LRB102 10881 SPS 16211 b
101-207, eff. 8-2-19; 101-363, eff. 8-9-19; revised 11-18-20.)
Section 90-30. The Retailers' Occupation Tax Act is
amended by adding Section 5k-5 as follows:
(35 ILCS 120/5k-5 new)
Sec. 5k-5. Building materials exemption; Clean Energy
Empowerment Zone. Each retailer who makes a sale of building
materials to be incorporated into renewable energy projects in
a Clean Energy Empowerment Zone established under the Energy
Community Reinvestment Act may deduct receipts from such sales
when calculating the tax imposed by this Act. A renewable
energy enterprise or other entity shall not make tax-free
purchases under this Section unless it has an active exemption
certificate at the time of purchase, which shall be issued by
the Department in a form prescribed by the Department. The
Department shall adopt by rule all other requirements
necessary for the implementation and operation of this
Section.
Section 90-35. The School Code is amended by adding
Section 2-3.182 as follows:
(105 ILCS 5/2-3.182 new)
Sec. 2-3.182. Clean energy jobs curriculum.
(a) The General Assembly recognizes that clean energy is a

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growing and important sector of the State's economy and that
significant job opportunity exists in the sector. Consistent
with the Clean Jobs, Workforce and Contractor Equity Act, the
Board shall participate in the development of the clean energy
jobs curriculum convened by the Department of Commerce and
Economic Opportunity. The Board shall identify and
collaboratively with stakeholders identified by the Board
develop curriculum based on anticipated clean energy job
availability and growth including participation from
stakeholders engaged in delivering existing clean energy jobs
workforce development programs in Illinois, specifically those
programs tailored to members of economically disadvantaged
communities, members of environmental justice communities,
communities of color, persons with a criminal record, persons
who are or were in the child welfare system, displaced energy
workers, and members of any of these groups who are also women
or transgender persons, as well as including youth. Clean
energy jobs considered shall be consistent with "clean energy
jobs" as defined in the Clean Jobs, Workforce and Contractor
Equity Act, including, but not limited to, solar photovoltaic,
solar thermal, wind energy, energy efficiency, site
assessment, sales, and back office.
(b) In the development of the clean energy jobs
curriculum, the Board shall consider broad occupational
training applicable to the general construction sector as well
as sector-specific skills, including training on the

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manufacture and installation of healthier building materials
that contain fewer hazardous chemicals.
(c) Consideration should be given to inclusion of skills
applicable to trainees for whom secondary and higher education
has not been available.
Section 90-40. The Public Utilities Act is amended by
changing Sections 2-107, 8-103B, 9-220.3, 9-227, 10-104,
16-107, 16-107.5, 16-107.6, 16-111.5, and 16-128B and by
adding Sections 4-604, 4-605, 8-104.1, 8-512, 9-222.1B,
16-105.17, 16-107.7, 16-107.8, 16-108, 16-108.5, 16-108.9,
16-108.18, 16-111.10, and 16-131 as follows:
(220 ILCS 5/2-107) (from Ch. 111 2/3, par. 2-107)
Sec. 2-107. The office of the Commission shall be in
Springfield, but the Commission may, with the approval of the
Governor, establish and maintain branch offices at places
other than the seat of government. Such office shall be open
for business between the hours of 8:30 a.m. and 5:00 p.m.
throughout the year, and one or more responsible persons to be
designated by the executive director shall be on duty at all
times in immediate charge thereof.
The Commission shall hold stated meetings at least once a
month and may hold such special meetings as it may deem
necessary at any place within the State. At each regular and
special meeting that is open to the public, members of the

HB0804 Engrossed - 491 - LRB102 10881 SPS 16211 b
public shall be afforded time, subject to reasonable
constraints, to make comments to or to ask questions of the
Commission. In any contested or rulemaking proceeding, at the
request of any party or at least 5 members of the public, the
Commission shall hold at least one public hearing, at a time
and place accessible and convenient for affected customers to
participate, where members of the public are invited to
participate and present public comments in accordance with 2
Ill. Adm. Code 1700.10. The hearing must take place at least 30
days prior to the Commission's final order on the case.
The Commission shall provide a web site and a toll-free
telephone number to accept comments from Illinois residents
regarding any matter under the auspices of the Commission or
before the Commission. The Commission staff shall report, in a
manner established by the Commission that is consistent with
the Commission's rules regarding ex parte communications, to
the full Commission comments and suggestions received through
both venues before all relevant votes of the Commission.
The Commission may, for the authentication of its records,
process and proceedings, adopt, keep and use a common seal, of
which seal judicial notice shall be taken in all courts of this
State; and any process, notice, order or other paper which the
Commission may be authorized by law to issue shall be deemed
sufficient if signed and certified by the Chairman of the
Commission or his or her designee, either by hand or by
facsimile, and with such seal attached; and all acts, orders,

HB0804 Engrossed - 492 - LRB102 10881 SPS 16211 b
proceedings, rules, entries, minutes, schedules and records of
the Commission, and all reports and documents filed with the
Commission, may be proved in any court of this State by a copy
thereof, certified to by the Chairman of the Commission, with
the seal of the Commission attached.
Notwithstanding any other provision of this Section, the
Commission's established procedures for accepting testimony
from Illinois residents on matters pending before the
Commission shall be consistent with the Commission's rules
regarding ex parte communications and due process.
(Source: P.A. 95-127, eff. 8-13-07.)
(220 ILCS 5/4-604 new)
Sec. 4-604. Electric and natural gas public utilities
ethical conduct and transparency.
(a) It is the policy of this State that, as regulated,
monopoly entities providing essential services, public
utilities must adhere to the highest standards of ethical
conduct. Recent events have demonstrated that at least one
public utility in this State has not adhered to the standards
of conduct expected by the State, and as such, has failed to
ensure safe, reliable service for customers at reasonable,
affordable rates. The General Assembly finds this breach of
the public trust, which has resulted in unreasonable rates for
some public utility customers, to be exceptionally concerning.
(b) It is in the public interest to ensure ethical public

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utility conduct of the highest standards. It is therefore
necessary for the public interest, safety, and welfare of the
State and of public utility customers to develop rigorous
ethical standards with limitations on and heightened scrutiny
of public utility actions, expenditures and contracting, and
to provide increased transparency to ensure ethical public
utility conduct. The standards set forth in this Section and
in the Illinois Administrative Code rules implementing this
Section shall apply, to the extent practicable, to electric
and natural gas public utilities and their holding or parent
companies, affiliates, and service companies. The Commission
shall have the authority to create rules and emergency rules,
where applicable, to effectuate this Section.
(c) Public Utility Ethics Inspector. To ensure public
utilities meet the highest level of ethical standards,
including, but not limited to, those standards described in
this Section, the Commission shall, within 60 days after the
effective date of this amendatory Act of the 102nd General
Assembly, establish an Accountability Division at the
Commission, and shall create a new position at the Commission
of Public Utility Ethics Inspector whose responsibilities
shall include:
(1) hire and oversee independent monitors, as
described in subsection (d);
(2) oversee development and publication of annual
ethics audits of electric and natural gas public utilities

HB0804 Engrossed - 494 - LRB102 10881 SPS 16211 b
by independent monitors;
(3) supervise each independent monitor's monitoring,
auditing, investigation, enforcement, reporting, and
disciplinary activities, in addition to any other actions
required of the independent monitors. In the event an
independent monitor or the Public Utility Ethics Inspector
finds a public utility has not complied with the standards
set forth in this Section, or with administrative rules
implementing this Section, the Public Utility Ethics
Inspector shall detail such deficiencies in a report to
the Commission and shall include a recommendation for
Commission action. The Public Utility Ethics Inspector
shall report to the Executive Director of the Illinois
Commerce Commission. The Public Utility Ethics Inspector
shall have the authority to hire additional staff for the
Accountability Division as deemed necessary to fulfill the
duties of this Section.
(d) Independent monitors. Within 90 days after the
employment of the Public Utility Ethics Inspector by the
Commission, the Public Utility Ethics Inspector shall
establish new positions at the Illinois Commerce Commission
within the Accountability Division of independent monitors for
each public utility in the State. The role of the independent
monitors shall be to oversee electric and natural gas public
utilities' compliance with the standards described in this
Section, with 83 Illinois Administrative Code, and with any

HB0804 Engrossed - 495 - LRB102 10881 SPS 16211 b
other portion of the Code or any statutory obligation
regarding standards of ethical conduct. The independent
monitors may also have other duties as deemed appropriate by
the Public Utility Ethics Inspector. Independent monitors
shall:
(1) Work in coordination with the public utility's
Chief Compliance and Ethics Officer, as described in
subsection (e), to ensure the public utility complies with
the standards of conduct described in this Section, in the
Illinois Administrative Code, and any other applicable
authority, through investigation, enforcement, reporting,
and disciplinary activities.
(2) Document violations of the standards in this
Section or in related sections of the Illinois
Administrative Code and, in coordination with the
utility's Chief Compliance and Ethics Officer, ensure
appropriate internal disciplinary actions and transparent
reporting to the Commission. In the event of violations of
the standards in this Section or in related sections of
the Illinois Administrative Code where the public utility
does not take disciplinary action, or where that action is
not aligned with the recommendation of the independent
monitor, the independent monitor shall, within 30 days,
report the violation, the independent monitor's
recommended disciplinary action, and the public utility's
actual disciplinary action, to the Public Utilities Ethics

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Inspector, who shall, within 30 days, file a report with
the Commission describing the violation and related
recommendations.
(3) Recommend to the public utility any new internal
controls, policies, practices or procedures the public
utility should undertake in order to ensure compliance
with this Section and with related sections of the
Illinois Administrative Code.
(4) At least annually, the independent monitor for a
public utility shall publish an ethics audit to be filed
with the Commission. The ethics audit shall describe the
public utility's internal controls, policies, practices,
and procedures to comply with the standards in this
Section and in the Illinois Administrative Code, and shall
document all instances of noncompliance. If internal
disciplinary actions were taken related to ethical conduct
governed by this Section or related Illinois
Administrative Code, the report shall also describe the
conduct and the responsive disciplinary actions taken. The
independent monitor shall also describe any
recommendations the independent monitor has made to the
public utility regarding standards of ethics, and the
public utility's responses to those recommendations. The
report shall be made public and redactions shall be
limited to the maximum extent practicable. Only
information which is critical to system security shall be

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redacted; information in which the public utility claims a
business interest shall not be deemed confidential or
redacted.
(e) Chief Compliance and Ethics Officers. Within 60 days
after the effective date of this amendatory Act of the 102nd
General Assembly, each public utility in the State shall
establish a new position of Chief Compliance and Ethics
Officer. The Chief Compliance and Ethics Officer shall be
employed by the public utility but shall serve as a liaison
between the public utility and the public utility's
independent monitor. The Chief Compliance and Ethics Officer
shall be responsible for ensuring the public utility complies
with the highest standards of ethical conduct, including, but
not limited to, complying with the standards described in this
Section, in the Illinois Administrative Code, and in any other
applicable authority. The Chief Compliance and Ethics Officer
shall oversee the creation and implementation of training for
every director, officer, employee, contractor, consultant,
lobbyist, vendor, agent, and business partner of the public
utility on applicable ethics guidelines. The Chief Compliance
and Ethics Officer shall oversee the creation and
implementation of a centralized reporting system for which
every director, officer, employee, contractor, consultant,
lobbyist, vendor, agent, and business partner shall have
training and submission access. The reporting system shall, at
minimum, be used to document every instance of communication

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with a public official or their staff, and shall be designed to
ensure efficient review by the independent monitor for
potential violations of the standards in this Section and in
the Illinois Administrative Code. The Chief Compliance and
Ethics Officer shall oversee the ongoing monitoring of all
contractors, consultants or vendors who are contracted for the
purpose of carrying out lobbying or other duties that involve
interacting with public officials or their staff to ensure
their continued compliance with the applicable ethical
standards and to ensure they are providing value to the
business.
The Chief Compliance and Ethics Officer shall establish at
the public utility internal controls, codes, policies,
procedures, practices, and reporting to comply with the
standards in this Section and in the Illinois Administrative
Code, including, but not limited to:
(i) A public utility shall ensure it has a system of
financial and accounting procedures, internal controls,
and practices reasonably designed to ensure the
maintenance of fair and accurate books, records, and
accounts. This system should be designed to provide
reasonable assurances that transactions are recorded as
necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles
or any other criteria applicable to such statements, and
to maintain accountability for assets.

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(ii) A public utility shall conduct periodic risk
assessments and shall enforce, amend, and implement new
internal controls, policies, procedures and practices
based on those assessments.
(iii) A public utility shall implement mechanisms
designed to ensure that its compliance code, internal
controls, policies and procedures are effectively
communicated to all directors, officers, employees,
contractors, consultants, lobbyists, vendors, agents and
business partners.
(iv) A public utility shall ensure that its directors
and senior management provide strong, explicit, and
visible support and commitment to its corporate policy
against violations of U.S. and state law.
(v) A public utility shall implement mechanisms
designed to effectively enforce its compliance code,
controls, policies, practices and procedures, including
appropriately providing incentive for compliance and
disciplining violations. Such procedures, controls,
policies, and practices shall be applied consistently and
fairly, regardless of the position held by, or the
importance of, the director, officer, or employee.
(vi) A public utility shall implement procedures to
ensure that, where misconduct is discovered, reasonable
steps are taken to remedy the harm resulting from such
misconduct, including disciplinary action, reporting to

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the Commission, and assessing and modifying as appropriate
the internal controls, code, policies, practices and
procedures necessary to ensure the compliance program is
effective.
The Chief Compliance and Ethics Officer shall be
responsible for reporting to the public utility's independent
monitor any conduct that is in violation of the standards set
forth in this Section or in violation of sections of the
Illinois Administrative Code implementing these rules and any
other authority governing the public utility's ethical
conduct, including disciplinary action taken in response. In
coordination with the public utility's independent monitor,
the Chief Compliance and Ethics Officer shall be responsible
for internal disciplinary actions at the public utility for
violations of such standards.
At least annually, the Chief Compliance and Ethics
Officer, in coordination with the independent monitor, shall
review the utility's internal controls, policies, practices
and procedures for their continued effectiveness to ensure the
highest standards of ethical conduct among the public
utility's directors, officers, employees, contractors,
consultants, lobbyists, vendors, agents and business partners.
(f) A public utility shall, within 90 days after this
amendatory act of the 102nd General Assembly, develop and
implement internal controls, policies, and procedures to
achieve the following objectives:

HB0804 Engrossed - 501 - LRB102 10881 SPS 16211 b
(i) No public utility may allow a contractor,
consultant, or vendor who is contracted for the purpose of
carrying out lobbying pursuant to the Lobbyist
Registration Act or other duties that involve interacting
with elected officials or their staff to subcontract any
portion of that work.
(ii) Electric and natural gas public utilities shall
require contractors, consultants, or vendors who are
contracted for the purpose of carrying out lobbying
pursuant to the Lobbyist Registration Act or other duties
that involve interacting with public officials or their
staff to provide detailed invoices and reports describing
activities taken and amounts billed for such activities,
including: 1) time spent; 2) amount charged for activity,
if any; 3) all person(s) involved; 4) summary description
of discussions or exchanges, oral, written, electronic, or
otherwise; and 5) anything of value requested or
solicited, or provided to public officials or their staff,
including hiring requests. Such invoices and reports shall
be entered into a database accessible by, at minimum, the
Chief Compliance and Ethics Officer and the public
utility's independent monitor. No contracts shall be paid
without a detailed invoice. Where anything of value is
requested, received, given, or exchanged with a public
official or their staff, such invoice or report must be
explicitly reviewed by the independent monitor and the

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Chief Compliance and Ethics Officer within 45 days after
the activity. No invoice related to the request, receipt,
gift, or exchange of something of value shall be paid
until that review is complete and the activity is
determined to be in compliance with ethical standards.
(iii) The hiring of contractors, consultants or
vendors who are contracted for the purpose of carrying out
lobbying pursuant to the Lobbyist Registration Act or
other duties that involve interacting with public
officials or their staff shall be reviewed and approved by
the Chief Compliance and Ethics Officer. The Chief
Compliance and Ethics Officer shall not approve any
contract or engagement until it has found there are no
conflicts of interest related to public officials. The
Chief Compliance and Ethics Officer shall oversee annual
or more frequent audits of every contractor, consultant,
or vendor who is contracted for the purpose of carrying
out lobbying or other duties that involve interacting with
public officials or their staff for continued review of
potential conflicts of interest related to elected
officials. The Chief Compliance and Ethics Officer shall
ensure that every contractor, consultant and vendor is
providing value to the business and providing detailed
invoices describing work done pursuant to paragraph (ii)
subsection (f).
(iv) All requests for anything of value made to a

HB0804 Engrossed - 503 - LRB102 10881 SPS 16211 b
public utility or its directors, officers, employees,
contractors, consultants, lobbyists, vendors, agents and
business partners by a public official or their staff
shall be recorded in a database accessible by the
independent monitor and the Company's Chief Ethics and
Compliance Officer within 2 business days after the
request. No action may be taken in response to such a
request until the request has been reviewed and approved
by the independent monitor and the Chief Ethics and
Compliance Officer.
(g) The Commission shall, within 60 days after the
effective date of this Amendatory Act of the 102nd General
Assembly, initiate an emergency rulemaking to add additional
requirements to Title 83 of the Illinois Administrative Code
to accomplish the following objectives:
(i) No director, officer, employee, contractor,
consultant, lobbyist, vendor, agent, representative, or
business partner of a public utility may meet privately
with any Commissioner or employee of the Illinois Commerce
Commission regarding any topic or issue anticipated to be
the subject of a contested hearing within the next 365
days. Any such anticipated meetings shall be open to the
public and communicated to consumer, community, and
environmental advocates.
(ii) Communication between any director, officer,
employee, contractor, consultant, lobbyist, vendor, agent,

HB0804 Engrossed - 504 - LRB102 10881 SPS 16211 b
representative, or business partner of a public utility
and any Commissioner or employee of the Illinois Commerce
Commission on a topic or issue anticipated to be the
subject of a contested hearing within the next 365 days
shall be reported in a publicly available central
database.
(h) All reports from the Public Utilities Ethics Inspector
to the Commission shall be made public and redactions shall be
limited to the maximum extent practicable. Only information
which is critical to system security shall be redacted;
information in which the public utility claims a business
interest shall not be deemed confidential or redacted. The
Public Utilities Ethics Inspector shall establish a procedure
for making unredacted reports available to interested
stakeholders who establish good cause that receipt of an
unredacted report is in the public interest.
Adoption and implementation of these emergency rules is
deemed to be necessary for the public interest, safety, and
welfare.
(i) Noncompliance. In the event the Public Utility Ethics
Inspector finds a public utility does not comply with any
portion of this Section, or with the rules effectuated by this
Section, the Public Utility Ethics Inspector shall issue a
Report to the Commission detailing the public utility's
deficiencies. The Commission shall have authority to open an
investigation and shall order remediation and penalties as

HB0804 Engrossed - 505 - LRB102 10881 SPS 16211 b
appropriate.
(j) Each year, each public utility in the State shall
remit amounts necessary for the State to pay the wages,
overhead, travel expenses, and other costs of that public
utility's independent monitor as well as that public utility's
proportional share, by number of customers, of the Public
Utility Ethics Inspector's wages, overhead, travel expenses,
and other costs. These expenses shall not be recoverable in
rates.
(k) A public utility's costs of complying with these
requirements, including wages and other operating expenses,
shall not be recoverable in rates.
(l) Where a public utility is the subject of a federal or
State criminal investigation, or where the Commission
initiates an investigation against a public utility for any
violation of the standards set forth in this Section or
Illinois Administrative Rules implementing this Section, the
utility's costs related to such investigation shall not be
recoverable in rates.
(220 ILCS 5/4-605 new)
Sec. 4-605. Restitution for misconduct.
(a) It is the policy of this State that public utility
ethical and criminal misconduct shall not be tolerated. The
General Assembly finds it necessary to collect restitution, to
be distributed as described in subsection (d), from a public

HB0804 Engrossed - 506 - LRB102 10881 SPS 16211 b
utility who has been found guilty of violations of criminal
law or who has entered into a Deferred Prosecution Agreement
that details violations of criminal law.
(b) In light of such violations, the Illinois Commerce
Commission shall, within 150 days after the effective date of
this amendatory Act of the 102nd General Assembly, initiate an
investigation into amounts necessary to be refunded to
customers to restore funds to the State and to ratepayers that
were collected by the electric public utility Commonwealth
Edison Company as a result of ethical misconduct. The
investigation shall conclude no later than 270 days following
initiation, and shall be conducted as a contested proceeding.
The investigation shall calculate benefits received by the
public utility that were instituted as a result of illegal and
unethical conduct, as set forth in the Deferred Prosecution
Agreement of July 16, 2020 between the United States Attorney
for the Northern District of Illinois and Commonwealth Edison
Company, for passage of the Energy Infrastructure
Modernization Act of 2011. The amount shall be no less than the
total return on equity recovered for investments in
infrastructure made pursuant to paragraph (1) of subsection
(b) of Section 16-108.5 of this Act.
(c) Pursuant to subsection (d), the investigation shall
calculate a schedule for remittance to state funds and to
ratepayers, over a period of no more than 4 years, to be paid
by the public utility from profits, returns, or shareholder

HB0804 Engrossed - 507 - LRB102 10881 SPS 16211 b
dollars. No costs related to the investigation, restitution,
or refunds may be recoverable through rates.
(d) Funds collected pursuant to this Section shall be
repaid by the public utility in the following manner:
(1) 25% shall be contributed to expand the Percentage
of Income Payment Program;
(2) 25%, or no less than $20 million annually, shall
be contributed to the Energy Community Reinvestment Fund
to support the Jobs and Environmental Justice Grant
Program, as described in the Expanding Clean Energy
Entrepreneurship Program of the Clean Jobs, Workforce and
Contractor Equity Act; and
(3) the remaining percentage of funds collected shall
be provided as a per-kilowatt-hour credit to the public
utility's ratepayers.
(220 ILCS 5/8-103B)
Sec. 8-103B. Energy efficiency and demand-response
measures.
(a) It is the policy of the State that electric utilities
are required to use cost-effective energy efficiency and
demand-response measures to reduce delivery load. Requiring
investment in cost-effective energy efficiency and
demand-response measures will reduce direct and indirect costs
to consumers by decreasing environmental impacts and by
avoiding or delaying the need for new generation,

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transmission, and distribution infrastructure. It serves the
public interest to allow electric utilities to recover costs
for reasonably and prudently incurred expenditures for energy
efficiency and demand-response measures. As used in this
Section, "cost-effective" means that the measures satisfy the
total resource cost test. The low-income measures described in
subsection (c) of this Section shall not be required to meet
the total resource cost test. For purposes of this Section,
the terms "energy-efficiency", "demand-response", "electric
utility", and "total resource cost test" have the meanings set
forth in the Illinois Power Agency Act. "Black, indigenous,
and people of color" and "BIPOC" means people who are members
of the groups described in subparagraphs (a) through (e) of
paragraph (A) of subsection (1) of Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act. "Expanding Clean Energy Entrepreneurship and
Contractor Incubator Network Program," "Clean Energy Black,
Indigenous, and People of Color Primes Contractor
Accelerator," "Returning Resident Clean Energy Training
Program," and "Clean Energy Workforce Training Hubs Program"
are as set forth in the Clean Jobs, Workforce and Contractor
Equity Act.
(a-5) This Section applies to electric utilities serving
more than 500,000 retail customers in the State for those
multi-year plans commencing after December 31, 2017.
(b) For purposes of this Section, electric utilities

HB0804 Engrossed - 509 - LRB102 10881 SPS 16211 b
subject to this Section that serve more than 3,000,000 retail
customers in the State shall be deemed to have achieved a
cumulative persisting annual savings of 6.6% from energy
efficiency measures and programs implemented during the period
beginning January 1, 2012 and ending December 31, 2017, which
percent is based on the deemed average weather normalized
sales of electric power and energy during calendar years 2014,
2015, and 2016 of 88,000,000 MWhs. For the purposes of this
subsection (b) and subsection (b-5), the 88,000,000 MWhs of
deemed electric power and energy sales shall be reduced by the
number of MWhs equal to the sum of the annual consumption of
customers that are exempt from subsections (a) through (j) of
this Section under subsection (l) of this Section, as averaged
across the calendar years 2014, 2015, and 2016. After 2017,
the deemed value of cumulative persisting annual savings from
energy efficiency measures and programs implemented during the
period beginning January 1, 2012 and ending December 31, 2017,
shall be reduced each year, as follows, and the applicable
value shall be applied to and count toward the utility's
achievement of the cumulative persisting annual savings goals
set forth in subsection (b-5):
(1) 5.8% deemed cumulative persisting annual savings
for the year ending December 31, 2018;
(2) 5.2% deemed cumulative persisting annual savings
for the year ending December 31, 2019;
(3) 4.5% deemed cumulative persisting annual savings

HB0804 Engrossed - 510 - LRB102 10881 SPS 16211 b
for the year ending December 31, 2020;
(4) 4.0% deemed cumulative persisting annual savings
for the year ending December 31, 2021;
(5) 3.5% deemed cumulative persisting annual savings
for the year ending December 31, 2022;
(6) 3.1% deemed cumulative persisting annual savings
for the year ending December 31, 2023;
(7) 2.8% deemed cumulative persisting annual savings
for the year ending December 31, 2024;
(8) 2.5% deemed cumulative persisting annual savings
for the year ending December 31, 2025;
(9) 2.3% deemed cumulative persisting annual savings
for the year ending December 31, 2026;
(10) 2.1% deemed cumulative persisting annual savings
for the year ending December 31, 2027;
(11) 1.8% deemed cumulative persisting annual savings
for the year ending December 31, 2028;
(12) 1.7% deemed cumulative persisting annual savings
for the year ending December 31, 2029; and
(13) 1.5% deemed cumulative persisting annual savings
for the year ending December 31, 2030; .
(14) 1.3% deemed cumulative persisting annual savings
for the year ending December 31, 2031;
(15) 1.1% deemed cumulative persisting annual savings
for the year ending December 31, 2032;
(16) 0.9% deemed cumulative persisting annual savings

HB0804 Engrossed - 511 - LRB102 10881 SPS 16211 b
for the year ending December 31, 2033;
(17) 0.7% deemed cumulative persisting annual savings
for the year ending December 31, 2034;
(18) 0.5% deemed cumulative persisting annual savings
for the year ending December 31, 2035;
(19) 0.4% deemed cumulative persisting annual savings
for the year ending December 31, 2036;
(20) 0.3% deemed cumulative persisting annual savings
for the year ending December 31, 2037;
(21) 0.2% deemed cumulative persisting annual savings
for the year ending December 31, 2038;
(22) 0.1% deemed cumulative persisting annual savings
for the year ending December 31, 2039; and
(23) 0.0% deemed cumulative persisting annual savings
for the year ending December 31, 2040 and all subsequent
years.
For purposes of this Section, "cumulative persisting
annual savings" means the total electric energy savings in a
given year from measures installed in that year or in previous
years, but no earlier than January 1, 2012, that are still
operational and providing savings in that year because the
measures have not yet reached the end of their useful lives.
(b-5) Beginning in 2018, electric utilities subject to
this Section that serve more than 3,000,000 retail customers
in the State shall achieve the following cumulative persisting
annual savings goals, as modified by subsection (f) of this

HB0804 Engrossed - 512 - LRB102 10881 SPS 16211 b
Section and as compared to the deemed baseline of 88,000,000
MWhs of electric power and energy sales set forth in
subsection (b), as reduced by the number of MWhs equal to the
sum of the annual consumption of customers that are exempt
from subsections (a) through (j) of this Section under
subsection (l) of this Section as averaged across the calendar
years 2014, 2015, and 2016, through the implementation of
energy efficiency measures during the applicable year and in
prior years, but no earlier than January 1, 2012:
(1) 7.8% cumulative persisting annual savings for the
year ending December 31, 2018;
(2) 9.1% cumulative persisting annual savings for the
year ending December 31, 2019;
(3) 10.4% cumulative persisting annual savings for the
year ending December 31, 2020;
(4) 11.8% cumulative persisting annual savings for the
year ending December 31, 2021;
(5) 13.1% cumulative persisting annual savings for the
year ending December 31, 2022;
(6) 14.4% cumulative persisting annual savings for the
year ending December 31, 2023;
(7) 15.7% cumulative persisting annual savings for the
year ending December 31, 2024;
(8) 17% cumulative persisting annual savings for the
year ending December 31, 2025;
(9) 17.9% cumulative persisting annual savings for the

HB0804 Engrossed - 513 - LRB102 10881 SPS 16211 b
year ending December 31, 2026;
(10) 18.8% cumulative persisting annual savings for
the year ending December 31, 2027;
(11) 19.7% cumulative persisting annual savings for
the year ending December 31, 2028;
(12) 20.6% cumulative persisting annual savings for
the year ending December 31, 2029; and
(13) 21.5% cumulative persisting annual savings for
the year ending December 31, 2030.
No later than December 31, 2021, the Illinois Commerce
Commission shall establish additional cumulative persisting
annual savings goals for the years 2031 through 2035. No later
than December 31, 2024, the Illinois Commerce Commission shall
establish additional cumulative persisting annual savings
goals for the years 2036 through 2040. The Commission shall
also establish additional cumulative persisting annual savings
goals every 5 years thereafter to ensure utilities always have
goals that extend at least 11 years into the future. The
cumulative persisting annual savings goals beyond the year
2030 shall increase by 0.9 percentage points per year, absent
a Commission decision to initiate a proceeding to consider
establishing goals that increase by more or less than that
amount. Such a proceeding must be conducted in accordance with
the procedures described in subsection (f) of this Section. If
such a proceeding is initiated, the cumulative persisting
annual savings goals established by the Commission through

HB0804 Engrossed - 514 - LRB102 10881 SPS 16211 b
that proceeding shall reflect the Commission's best estimate
of the maximum amount of additional savings that are forecast
to be cost-effectively achievable unless such best estimates
would result in goals that represent less than 0.5 percentage
point annual increases in total cumulative persisting annual
savings. The Commission may only establish goals that
represent less than 0.5 percentage point annual increases in
cumulative persisting annual savings if it can demonstrate,
based on clear and convincing evidence and through independent
analysis, that 0.5 percentage point increases are not
cost-effectively achievable. The Commission shall inform its
decision based on an energy efficiency potential study that
conforms to the requirements of subsection (f-5) of this
Section.
(b-10) For purposes of this Section, electric utilities
subject to this Section that serve less than 3,000,000 retail
customers but more than 500,000 retail customers in the State
shall be deemed to have achieved a cumulative persisting
annual savings of 6.6% from energy efficiency measures and
programs implemented during the period beginning January 1,
2012 and ending December 31, 2017, which is based on the deemed
average weather normalized sales of electric power and energy
during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
For the purposes of this subsection (b-10) and subsection
(b-15), the 36,900,000 MWhs of deemed electric power and
energy sales shall be reduced by the number of MWhs equal to

HB0804 Engrossed - 515 - LRB102 10881 SPS 16211 b
the sum of the annual consumption of customers that are exempt
from subsections (a) through (j) of this Section under
subsection (l) of this Section, as averaged across the
calendar years 2014, 2015, and 2016. After 2017, the deemed
value of cumulative persisting annual savings from energy
efficiency measures and programs implemented during the period
beginning January 1, 2012 and ending December 31, 2017, shall
be reduced each year, as follows, and the applicable value
shall be applied to and count toward the utility's achievement
of the cumulative persisting annual savings goals set forth in
subsection (b-15):
(1) 5.8% deemed cumulative persisting annual savings
for the year ending December 31, 2018;
(2) 5.2% deemed cumulative persisting annual savings
for the year ending December 31, 2019;
(3) 4.5% deemed cumulative persisting annual savings
for the year ending December 31, 2020;
(4) 4.0% deemed cumulative persisting annual savings
for the year ending December 31, 2021;
(5) 3.5% deemed cumulative persisting annual savings
for the year ending December 31, 2022;
(6) 3.1% deemed cumulative persisting annual savings
for the year ending December 31, 2023;
(7) 2.8% deemed cumulative persisting annual savings
for the year ending December 31, 2024;
(8) 2.5% deemed cumulative persisting annual savings

HB0804 Engrossed - 516 - LRB102 10881 SPS 16211 b
for the year ending December 31, 2025;
(9) 2.3% deemed cumulative persisting annual savings
for the year ending December 31, 2026;
(10) 2.1% deemed cumulative persisting annual savings
for the year ending December 31, 2027;
(11) 1.8% deemed cumulative persisting annual savings
for the year ending December 31, 2028;
(12) 1.7% deemed cumulative persisting annual savings
for the year ending December 31, 2029; and
(13) 1.5% deemed cumulative persisting annual savings
for the year ending December 31, 2030; .
(14) 1.3% deemed cumulative persisting annual savings
for the year ending December 31, 2031;
(15) 1.1% deemed cumulative persisting annual savings
for the year ending December 31, 2032;
(16) 0.9% deemed cumulative persisting annual savings
for the year ending December 31, 2033;
(17) 0.7% deemed cumulative persisting annual savings
for the year ending December 31, 2034;
(18) 0.5% deemed cumulative persisting annual savings
for the year ending December 31, 2035;
(19) 0.4% deemed cumulative persisting annual savings
for the year ending December 31, 2036;
(20) 0.3% deemed cumulative persisting annual savings
for the year ending December 31, 2037;
(21) 0.2% deemed cumulative persisting annual savings

HB0804 Engrossed - 517 - LRB102 10881 SPS 16211 b
for the year ending December 31, 2038;
(22) 0.1% deemed cumulative persisting annual savings
for the year ending December 31, 2039; and
(23) 0.0% deemed cumulative persisting annual savings
for the year ending December 31, 2040 and all subsequent
years.
(b-15) Beginning in 2018, electric utilities subject to
this Section that serve less than 3,000,000 retail customers
but more than 500,000 retail customers in the State shall
achieve the following cumulative persisting annual savings
goals, as modified by subsection (b-20) and subsection (f) of
this Section and as compared to the deemed baseline as reduced
by the number of MWhs equal to the sum of the annual
consumption of customers that are exempt from subsections (a)
through (j) of this Section under subsection (l) of this
Section as averaged across the calendar years 2014, 2015, and
2016, through the implementation of energy efficiency measures
during the applicable year and in prior years, but no earlier
than January 1, 2012:
(1) 7.4% cumulative persisting annual savings for the
year ending December 31, 2018;
(2) 8.2% cumulative persisting annual savings for the
year ending December 31, 2019;
(3) 9.0% cumulative persisting annual savings for the
year ending December 31, 2020;
(4) 9.8% cumulative persisting annual savings for the

HB0804 Engrossed - 518 - LRB102 10881 SPS 16211 b
year ending December 31, 2021;
(5) 10.6% cumulative persisting annual savings for the
year ending December 31, 2022;
(6) 11.4% cumulative persisting annual savings for the
year ending December 31, 2023;
(7) 12.2% cumulative persisting annual savings for the
year ending December 31, 2024;
(8) 13% cumulative persisting annual savings for the
year ending December 31, 2025;
(9) 13.6% cumulative persisting annual savings for the
year ending December 31, 2026;
(10) 14.2% cumulative persisting annual savings for
the year ending December 31, 2027;
(11) 14.8% cumulative persisting annual savings for
the year ending December 31, 2028;
(12) 15.4% cumulative persisting annual savings for
the year ending December 31, 2029; and
(13) 16% cumulative persisting annual savings for the
year ending December 31, 2030.
No later than December 31, 2021, the Illinois Commerce
Commission shall establish additional cumulative persisting
annual savings goals for the years 2031 through 2035. No later
than December 31, 2024, the Illinois Commerce Commission shall
establish additional cumulative persisting annual savings
goals for the years 2036 through 2040. The Commission shall
also establish additional cumulative persisting annual savings

HB0804 Engrossed - 519 - LRB102 10881 SPS 16211 b
goals every 5 years thereafter to ensure utilities always have
goals that extend at least 11 years into the future. The
cumulative persisting annual savings goals beyond the year
2030 shall increase by 0.6 percentage points per year, absent
a Commission decision to initiate a proceeding to consider
establishing goals that increase by more or less than that
amount. Such a proceeding must be conducted in accordance with
the procedures described in subsection (f) of this Section. If
such a proceeding is initiated, the cumulative persisting
annual savings goals established by the Commission through
that proceeding shall reflect the Commission's best estimate
of the maximum amount of additional savings that are forecast
to be cost-effectively achievable unless such best estimates
would result in goals that represent less than 0.4 percentage
point annual increases in total cumulative persisting annual
savings. The Commission may only establish goals that
represent less than 0.4 percentage point annual increases in
cumulative persisting annual savings if it can demonstrate,
based on clear and convincing evidence and through independent
analysis, that 0.4 percentage point increases are not
cost-effectively achievable. The Commission shall inform its
decision based on an energy efficiency potential study that
conforms to the requirements of subsection (f-5) of this
Section.
The difference between the cumulative persisting annual
savings goal for the applicable calendar year and the

HB0804 Engrossed - 520 - LRB102 10881 SPS 16211 b
cumulative persisting annual savings goal for the immediately
preceding calendar year is 0.8% for the period of January 1,
2018 through December 31, 2025 and 0.6% for the period of
January 1, 2026 through December 31, 2030.
(b-20) Each electric utility subject to this Section may
include cost-effective voltage optimization measures in its
plans submitted under subsections (f) and (g) of this Section,
and the costs incurred by a utility to implement the measures
under a Commission-approved plan shall be recovered under the
provisions of Article IX or Section 16-108.5 of this Act. For
purposes of this Section, the measure life of voltage
optimization measures shall be 15 years. The measure life
period is independent of the depreciation rate of the voltage
optimization assets deployed. Utilities may claim savings from
voltage optimization on circuits for more than 15 years if
they can demonstrate that they have made additional
investments necessary to enable voltage optimization savings
to continue beyond 15 years. Such demonstrations must be
subject to the review of independent evaluation.
Within 270 days after June 1, 2017 (the effective date of
Public Act 99-906), an electric utility that serves less than
3,000,000 retail customers but more than 500,000 retail
customers in the State shall file a plan with the Commission
that identifies the cost-effective voltage optimization
investment the electric utility plans to undertake through
December 31, 2024. The Commission, after notice and hearing,

HB0804 Engrossed - 521 - LRB102 10881 SPS 16211 b
shall approve or approve with modification the plan within 120
days after the plan's filing and, in the order approving or
approving with modification the plan, the Commission shall
adjust the applicable cumulative persisting annual savings
goals set forth in subsection (b-15) to reflect any amount of
cost-effective energy savings approved by the Commission that
is greater than or less than the following cumulative
persisting annual savings values attributable to voltage
optimization for the applicable year:
(1) 0.0% of cumulative persisting annual savings for
the year ending December 31, 2018;
(2) 0.17% of cumulative persisting annual savings for
the year ending December 31, 2019;
(3) 0.17% of cumulative persisting annual savings for
the year ending December 31, 2020;
(4) 0.33% of cumulative persisting annual savings for
the year ending December 31, 2021;
(5) 0.5% of cumulative persisting annual savings for
the year ending December 31, 2022;
(6) 0.67% of cumulative persisting annual savings for
the year ending December 31, 2023;
(7) 0.83% of cumulative persisting annual savings for
the year ending December 31, 2024; and
(8) 1.0% of cumulative persisting annual savings for
the year ending December 31, 2025 and all subsequent
years.

HB0804 Engrossed - 522 - LRB102 10881 SPS 16211 b
(b-25) In the event an electric utility jointly offers an
energy efficiency measure or program with a gas utility under
plans approved under this Section and Section 8-104 of this
Act, the electric utility may continue offering the program,
including the gas energy efficiency measures, in the event the
gas utility discontinues funding the program. In that event,
the energy savings value associated with such other fuels
shall be converted to electric energy savings on an equivalent
Btu basis for the premises. However, the electric utility
shall prioritize programs for low-income residential customers
to the extent practicable. An electric utility may recover the
costs of offering the gas energy efficiency measures under
this subsection (b-25).
For those energy efficiency measures or programs that save
both electricity and other fuels but are not jointly offered
with a gas utility under plans approved under this Section and
Section 8-104 or not offered with an affiliated gas utility
under paragraph (6) of subsection (f) of Section 8-104 of this
Act, the electric utility may count savings of fuels other
than electricity toward the achievement of its annual savings
goal, and the energy savings value associated with such other
fuels shall be converted to electric energy savings on an
equivalent Btu basis at the premises.
In no event shall more than 10% of each year's applicable
annual total savings requirement incremental goal as defined
in paragraph (7.5) (7) of subsection (g) of this Section be met

HB0804 Engrossed - 523 - LRB102 10881 SPS 16211 b
through savings of fuels other than electricity.
(b-27) Beginning in 2022, an electric utility may offer
and promote measures that electrify space heating, water
heating, cooling, drying, cooking, industrial processes, and
other building and industrial end uses that would otherwise be
served by combustion of fossil fuel at the premises, provided
that the electrification measures reduce total energy
consumption at the premises. The electric utility may count
the reduction in energy consumption at the premises toward
achievement of its annual savings goals. The reduction in
energy consumption at the premises shall be calculated as the
difference between: (A) the reduction in Btu consumption of
fossil fuels as a result of electrification, converted to
kilowatt-hour equivalents by dividing by 3,412 Btu's per
kilowatt hour; and (B) the increase in kilowatt hours of
electricity consumption resulting from the displacement of
fossil fuel consumption as a result of electrification. An
electric utility may recover the costs of offering and
promoting electrification measures under this subsection
(b-27).
In no event shall electrification savings counted toward
each year's applicable annual total savings requirement, as
defined in paragraph (7.5) of subsection (g) of this Section,
be greater than:
(1) 5% per year for each year from 2022 through 2025;
(2) 10% per year for each year from 2026 through 2029;

HB0804 Engrossed - 524 - LRB102 10881 SPS 16211 b
and
(3) 15% per year for 2030 and all subsequent years.
In addition, a minimum of 25% of all electrification savings
counted toward a utility's applicable annual total savings
requirement must be from electrification of end uses in
low-income housing. The limitations on electrification savings
that may be counted toward a utility's annual savings goals
are separate from and in addition to the subsection (b-25)
limitations governing the counting of the other fuel savings
resulting from efficiency measures and programs.
As part of the annual informational filing to the
Commission that is required under paragraph (9) of subsection
(g) of this Section, each utility shall identify the specific
electrification measures offered under this subjection (b-27);
the quantity of each electrification measure that was
installed by its customers; the average total cost, average
utility cost, average reduction in fossil fuel consumption,
and average increase in electricity consumption associated
with each electrification measure; the portion of
installations of each electrification measure that were in
low-income single-family housing, low-income multifamily
housing, non-low-income single-family housing, non-low-income
multifamily housing, commercial buildings, and industrial
facilities; and the quantity of savings associated with each
measure category in each customer category that are being
counted toward the utility's applicable annual total savings

HB0804 Engrossed - 525 - LRB102 10881 SPS 16211 b
requirement.
(c) Electric utilities shall be responsible for overseeing
the design, development, and filing of energy efficiency plans
with the Commission and may, as part of that implementation,
outsource various aspects of program development and
implementation. A minimum of 10%, for electric utilities that
serve more than 3,000,000 retail customers in the State, and a
minimum of 7%, for electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State, of the utility's entire portfolio
funding level for a given year shall be used to procure
cost-effective energy efficiency measures from units of local
government, municipal corporations, school districts, public
housing, and community college districts, and buildings owned
by nonprofit organizations, provided that a minimum percentage
of available funds shall be used to procure energy efficiency
from public housing, which percentage shall be equal to public
housing's share of public building energy consumption.
The utilities shall also implement energy efficiency
measures targeted at low-income households, which, for
purposes of this Section, shall be defined as households at or
below 80% of area median income, and expenditures to implement
the measures shall be no less than $40,000,000 $25,000,000 per
year for electric utilities that serve more than 3,000,000
retail customers in the State and no less than $13,000,000
$8,350,000 per year for electric utilities that serve less

HB0804 Engrossed - 526 - LRB102 10881 SPS 16211 b
than 3,000,000 retail customers but more than 500,000 retail
customers in the State. The ratio of spending on efficiency
programs targeted at low-income multifamily buildings to
spending on efficiency programs targeted at low-income
single-family buildings shall be designed to achieve levels of
savings from each building type that are approximately
proportional to the magnitude of cost-effective lifetime
savings potential in each building type.
The utilities shall work to bundle low-income energy
efficiency offerings with other programs that serve low-income
households to maximize the benefits going to these households.
The utilities shall market and implement low-income energy
efficiency programs in coordination with low-income assistance
programs, Solar for All, and weatherization whenever
practicable. The program implementer shall walk the customer
through the enrollment process for any programs for which the
customer is eligible. The utilities shall also pilot targeting
customers with high arrearages, high energy intensity (ratio
of energy usage divided by home or unit square footage), or
energy assistance programs with energy efficiency offerings,
and then track reduction in arrearages as a result of the
targeting. This targeting and bundling of low-income energy
programs shall be offered to both low-income single-family and
multifamily customers (owners and residents).
The utilities shall also implement a health and safety
fund of a minimum of 0.5% of the total portfolio budget, for

HB0804 Engrossed - 527 - LRB102 10881 SPS 16211 b
electric utilities that serve more than 3,000,000 retail
customers in the State, and a minimum of 0.5% of the total
portfolio budget, for electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State, of the utility's entire portfolio
funding level for a given year, that shall be used for the
purpose of making grants for technical assistance,
construction, reconstruction, improvement, or repair of
buildings to facilitate their participation in the energy
efficiency programs targeted at low-income single-family and
multifamily households. These funds may also be used for the
purpose of making grants for technical assistance,
construction, reconstruction, improvement, or repair of the
following buildings to facilitate their participation in the
energy efficiency programs created by this Section: (1)
buildings that are owned or operated by registered 501(c)(3)
public charities; and (2) day care centers, day care homes, or
group day care homes, as defined under 89 Ill. Adm. Code Part
406, 407, or 408, respectively. Utilities shall also ensure
that thermal insulating materials used for energy efficiency
programs targeted at low-income single-family and multifamily
households do not contain any substance that is a Category 1
respiratory sensitizer as defined by Appendix A to 29 CFR
1910.1200 (Health Hazard Criteria: A.4 Respiratory or Skin
Sensitization) that was intentionally added or is present at
greater than 0.1% (1000 ppm) by weight in the product.

HB0804 Engrossed - 528 - LRB102 10881 SPS 16211 b
Each electric utility shall assess opportunities to
implement cost-effective energy efficiency measures and
programs through a public housing authority or authorities
located in its service territory. If such opportunities are
identified, the utility shall propose such measures and
programs to address the opportunities. Expenditures to address
such opportunities shall be credited toward the minimum
procurement and expenditure requirements set forth in this
subsection (c).
Implementation of energy efficiency measures and programs
targeted at low-income households should be contracted, when
it is practicable, to independent third parties that have
demonstrated capabilities to serve such households, with a
preference for not-for-profit entities and government agencies
that have existing relationships with or experience serving
low-income communities in the State.
Each electric utility shall develop and implement
reporting procedures that address and assist in determining
the amount of energy savings that can be applied to the
low-income procurement and expenditure requirements set forth
in this subsection (c). Each electric utility shall also track
the types and quantities or volumes of insulation and air
sealing materials, and their associated energy saving
benefits, installed in energy efficiency programs targeted at
low-income single-family and multifamily households.
The electric utilities shall participate in also convene a

HB0804 Engrossed - 529 - LRB102 10881 SPS 16211 b
low-income energy efficiency accountability advisory committee
("the committee"), which will directly inform to assist in the
design, implementation, and evaluation of the low-income and
public-housing energy efficiency programs. The committee shall
be comprised of the electric utilities subject to the
requirements of this Section, the gas utilities subject to the
requirements of Section 8-104.1 8-104 of this Act, the
utilities' low-income energy efficiency implementation
contractors, nonprofit organizations, community action
agencies, advocacy groups, State and local governmental
agencies, public-housing organizations, and representatives of
community-based organizations, especially those living in or
working with environmental justice communities and BIPOC
communities. The committee shall be composed of 2
geographically differentiated subcommittees: one for
stakeholders in northern Illinois and one for stakeholders in
central and southern Illinois. The subcommittees shall meet
together at least twice per year.
There shall be one statewide leadership committee led by
and composed of community-based organizations that are
representative of BIPOC and environmental justice communities
and that includes equitable representation from BIPOC
communities. The leadership committee shall be composed of an
equal number of representatives from the 2 subcommittees. The
subcommittees shall address specific programs and issues, with
the leadership committee convening targeted workgroups as

HB0804 Engrossed - 530 - LRB102 10881 SPS 16211 b
needed. The leadership committee may elect to work with an
independent facilitator to solicit and organize feedback,
recommendations and meeting participation from a wide variety
of community-based stakeholders. If a facilitator is used,
they shall be fair and responsive to the needs of all
stakeholders involved in the committee.
All committee meetings must be accessible, with rotating
locations if meetings are held in-person, virtual
participation options, and materials and agendas circulated
well in advance.
There shall also be opportunities for direct input by
committee members outside of committee meetings, such as via
individual meetings, surveys, emails and calls, to ensure
robust participation by stakeholders with limited capacity and
ability to attend committee meetings. Committee meetings shall
emphasize opportunities to bundle and coordinate delivery of
low-income energy efficiency with other programs that serve
low-income communities, such as Solar for All and bill payment
assistance programs. Meetings shall include educational
opportunities for stakeholders to learn more about these
additional offerings, and the committee shall assist in
figuring out the best methods for coordinated delivery and
implementation of offerings when serving low-income
communities. The committee shall directly and equitably
influence and inform utility low-income and public-housing
energy efficiency programs and priorities. Participating

HB0804 Engrossed - 531 - LRB102 10881 SPS 16211 b
utilities shall implement recommendations from the committee
whenever possible.
Participating utilities shall track and report how input
from the committee has led to new approaches and changes in
their energy efficiency portfolios. This reporting shall occur
at committee meetings and in quarterly energy efficiency
reports to the Stakeholder Advisory Group and Illinois
Commerce Commission, and other relevant reporting mechanisms.
Participating utilities shall also report on relevant equity
data and metrics requested by the committee, such as energy
burden data, geographic, racial, and other relevant
demographic data on where programs are being delivered and
what populations programs are serving.
The Illinois Commerce Commission shall oversee and have
relevant staff participate in the committee. The committee
shall have a budget of 0.25% of each utility's entire
efficiency portfolio funding for a given year. The budget
shall be overseen by the Commission. The budget shall be used
to provide grants for community-based organizations serving on
the leadership committee, stipends for community-based
organizations participating in the committee, grants for
community-based organizations to do energy efficiency outreach
and education, and relevant meeting needs as determined by the
leadership committee. The education and outreach shall
include, but is not limited to, basic energy efficiency
education, information about low-income energy efficiency

HB0804 Engrossed - 532 - LRB102 10881 SPS 16211 b
programs, and information on the committee's purpose,
structure, and activities.
(d) Notwithstanding any other provision of law to the
contrary, a utility providing approved energy efficiency
measures and, if applicable, demand-response measures in the
State shall be permitted to recover all reasonable and
prudently incurred costs of those measures from all retail
customers, except as provided in subsection (l) of this
Section, as follows, provided that nothing in this subsection
(d) permits the double recovery of such costs from customers:
(1) The utility may recover its costs through an
automatic adjustment clause tariff filed with and approved
by the Commission. The tariff shall be established outside
the context of a general rate case. Each year the
Commission shall initiate a review to reconcile any
amounts collected with the actual costs and to determine
the required adjustment to the annual tariff factor to
match annual expenditures. To enable the financing of the
incremental capital expenditures, including regulatory
assets, for electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State, the utility's actual year-end
capital structure that includes a common equity ratio,
excluding goodwill, of up to and including 50% of the
total capital structure shall be deemed reasonable and
used to set rates.

HB0804 Engrossed - 533 - LRB102 10881 SPS 16211 b
(2) A utility may recover its costs through an energy
efficiency formula rate approved by the Commission under a
filing under subsections (f) and (g) of this Section,
which shall specify the cost components that form the
basis of the rate charged to customers with sufficient
specificity to operate in a standardized manner and be
updated annually with transparent information that
reflects the utility's actual costs to be recovered during
the applicable rate year, which is the period beginning
with the first billing day of January and extending
through the last billing day of the following December.
The energy efficiency formula rate shall be implemented
through a tariff filed with the Commission under
subsections (f) and (g) of this Section that is consistent
with the provisions of this paragraph (2) and that shall
be applicable to all delivery services customers. The
Commission shall conduct an investigation of the tariff in
a manner consistent with the provisions of this paragraph
(2), subsections (f) and (g) of this Section, and the
provisions of Article IX of this Act to the extent they do
not conflict with this paragraph (2). The energy
efficiency formula rate approved by the Commission shall
remain in effect at the discretion of the utility and
shall do the following:
(A) Provide for the recovery of the utility's
actual costs incurred under this Section that are

HB0804 Engrossed - 534 - LRB102 10881 SPS 16211 b
prudently incurred and reasonable in amount consistent
with Commission practice and law. The sole fact that a
cost differs from that incurred in a prior calendar
year or that an investment is different from that made
in a prior calendar year shall not imply the
imprudence or unreasonableness of that cost or
investment.
(B) Reflect the utility's actual year-end capital
structure for the applicable calendar year, excluding
goodwill, subject to a determination of prudence and
reasonableness consistent with Commission practice and
law. To enable the financing of the incremental
capital expenditures, including regulatory assets, for
electric utilities that serve less than 3,000,000
retail customers but more than 500,000 retail
customers in the State, a participating electric
utility's actual year-end capital structure that
includes a common equity ratio, excluding goodwill, of
up to and including 50% of the total capital structure
shall be deemed reasonable and used to set rates.
(C) Include a cost of equity, which shall be
calculated as the sum of the following:
(i) the average for the applicable calendar
year of the monthly average yields of 30-year U.S.
Treasury bonds published by the Board of Governors
of the Federal Reserve System in its weekly H.15

HB0804 Engrossed - 535 - LRB102 10881 SPS 16211 b
Statistical Release or successor publication; and
(ii) 580 basis points.
At such time as the Board of Governors of the
Federal Reserve System ceases to include the monthly
average yields of 30-year U.S. Treasury bonds in its
weekly H.15 Statistical Release or successor
publication, the monthly average yields of the U.S.
Treasury bonds then having the longest duration
published by the Board of Governors in its weekly H.15
Statistical Release or successor publication shall
instead be used for purposes of this paragraph (2).
(D) Permit and set forth protocols, subject to a
determination of prudence and reasonableness
consistent with Commission practice and law, for the
following:
(i) recovery of incentive compensation expense
that is based on the achievement of operational
metrics, including metrics related to budget
controls, outage duration and frequency, safety,
customer service, efficiency and productivity, and
environmental compliance; however, this protocol
shall not apply if such expense related to costs
incurred under this Section is recovered under
Article IX or Section 16-108.5 of this Act;
incentive compensation expense that is based on
net income or an affiliate's earnings per share

HB0804 Engrossed - 536 - LRB102 10881 SPS 16211 b
shall not be recoverable under the energy
efficiency formula rate;
(ii) recovery of pension and other
post-employment benefits expense, provided that
such costs are supported by an actuarial study;
however, this protocol shall not apply if such
expense related to costs incurred under this
Section is recovered under Article IX or Section
16-108.5 of this Act;
(iii) recovery of existing regulatory assets
over the periods previously authorized by the
Commission;
(iv) as described in subsection (e),
amortization of costs incurred under this Section;
and
(v) projected, weather normalized billing
determinants for the applicable rate year.
(E) Provide for an annual reconciliation, as
described in paragraph (3) of this subsection (d),
less any deferred taxes related to the reconciliation,
with interest at an annual rate of return equal to the
utility's weighted average cost of capital, including
a revenue conversion factor calculated to recover or
refund all additional income taxes that may be payable
or receivable as a result of that return, of the energy
efficiency revenue requirement reflected in rates for

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each calendar year, beginning with the calendar year
in which the utility files its energy efficiency
formula rate tariff under this paragraph (2), with
what the revenue requirement would have been had the
actual cost information for the applicable calendar
year been available at the filing date.
The utility shall file, together with its tariff, the
projected costs to be incurred by the utility during the
rate year under the utility's multi-year plan approved
under subsections (f) and (g) of this Section, including,
but not limited to, the projected capital investment costs
and projected regulatory asset balances with
correspondingly updated depreciation and amortization
reserves and expense, that shall populate the energy
efficiency formula rate and set the initial rates under
the formula.
The Commission shall review the proposed tariff in
conjunction with its review of a proposed multi-year plan,
as specified in paragraph (5) of subsection (g) of this
Section. The review shall be based on the same evidentiary
standards, including, but not limited to, those concerning
the prudence and reasonableness of the costs incurred by
the utility, the Commission applies in a hearing to review
a filing for a general increase in rates under Article IX
of this Act. The initial rates shall take effect beginning
with the January monthly billing period following the

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Commission's approval.
The tariff's rate design and cost allocation across
customer classes shall be consistent with the utility's
automatic adjustment clause tariff in effect on June 1,
2017 (the effective date of Public Act 99-906); however,
the Commission may revise the tariff's rate design and
cost allocation in subsequent proceedings under paragraph
(3) of this subsection (d).
If the energy efficiency formula rate is terminated,
the then current rates shall remain in effect until such
time as the energy efficiency costs are incorporated into
new rates that are set under this subsection (d) or
Article IX of this Act, subject to retroactive rate
adjustment, with interest, to reconcile rates charged with
actual costs.
(3) The provisions of this paragraph (3) shall only
apply to an electric utility that has elected to file an
energy efficiency formula rate under paragraph (2) of this
subsection (d). Subsequent to the Commission's issuance of
an order approving the utility's energy efficiency formula
rate structure and protocols, and initial rates under
paragraph (2) of this subsection (d), the utility shall
file, on or before June 1 of each year, with the Chief
Clerk of the Commission its updated cost inputs to the
energy efficiency formula rate for the applicable rate
year and the corresponding new charges, as well as the

HB0804 Engrossed - 539 - LRB102 10881 SPS 16211 b
information described in paragraph (9) of subsection (g)
of this Section. Each such filing shall conform to the
following requirements and include the following
information:
(A) The inputs to the energy efficiency formula
rate for the applicable rate year shall be based on the
projected costs to be incurred by the utility during
the rate year under the utility's multi-year plan
approved under subsections (f) and (g) of this
Section, including, but not limited to, projected
capital investment costs and projected regulatory
asset balances with correspondingly updated
depreciation and amortization reserves and expense.
The filing shall also include a reconciliation of the
energy efficiency revenue requirement that was in
effect for the prior rate year (as set by the cost
inputs for the prior rate year) with the actual
revenue requirement for the prior rate year
(determined using a year-end rate base) that uses
amounts reflected in the applicable FERC Form 1 that
reports the actual costs for the prior rate year. Any
over-collection or under-collection indicated by such
reconciliation shall be reflected as a credit against,
or recovered as an additional charge to, respectively,
with interest calculated at a rate equal to the
utility's weighted average cost of capital approved by

HB0804 Engrossed - 540 - LRB102 10881 SPS 16211 b
the Commission for the prior rate year, the charges
for the applicable rate year. Such over-collection or
under-collection shall be adjusted to remove any
deferred taxes related to the reconciliation, for
purposes of calculating interest at an annual rate of
return equal to the utility's weighted average cost of
capital approved by the Commission for the prior rate
year, including a revenue conversion factor calculated
to recover or refund all additional income taxes that
may be payable or receivable as a result of that
return. Each reconciliation shall be certified by the
participating utility in the same manner that FERC
Form 1 is certified. The filing shall also include the
charge or credit, if any, resulting from the
calculation required by subparagraph (E) of paragraph
(2) of this subsection (d).
Notwithstanding any other provision of law to the
contrary, the intent of the reconciliation is to
ultimately reconcile both the revenue requirement
reflected in rates for each calendar year, beginning
with the calendar year in which the utility files its
energy efficiency formula rate tariff under paragraph
(2) of this subsection (d), with what the revenue
requirement determined using a year-end rate base for
the applicable calendar year would have been had the
actual cost information for the applicable calendar

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year been available at the filing date.
For purposes of this Section, "FERC Form 1" means
the Annual Report of Major Electric Utilities,
Licensees and Others that electric utilities are
required to file with the Federal Energy Regulatory
Commission under the Federal Power Act, Sections 3,
4(a), 304 and 209, modified as necessary to be
consistent with 83 Ill. Admin. Code Part 415 as of May
1, 2011. Nothing in this Section is intended to allow
costs that are not otherwise recoverable to be
recoverable by virtue of inclusion in FERC Form 1.
(B) The new charges shall take effect beginning on
the first billing day of the following January billing
period and remain in effect through the last billing
day of the next December billing period regardless of
whether the Commission enters upon a hearing under
this paragraph (3).
(C) The filing shall include relevant and
necessary data and documentation for the applicable
rate year. Normalization adjustments shall not be
required.
Within 45 days after the utility files its annual
update of cost inputs to the energy efficiency formula
rate, the Commission shall with reasonable notice,
initiate a proceeding concerning whether the projected
costs to be incurred by the utility and recovered during

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the applicable rate year, and that are reflected in the
inputs to the energy efficiency formula rate, are
consistent with the utility's approved multi-year plan
under subsections (f) and (g) of this Section and whether
the costs incurred by the utility during the prior rate
year were prudent and reasonable. The Commission shall
also have the authority to investigate the information and
data described in paragraph (9) of subsection (g) of this
Section, including the proposed adjustment to the
utility's return on equity component of its weighted
average cost of capital. During the course of the
proceeding, each objection shall be stated with
particularity and evidence provided in support thereof,
after which the utility shall have the opportunity to
rebut the evidence. Discovery shall be allowed consistent
with the Commission's Rules of Practice, which Rules of
Practice shall be enforced by the Commission or the
assigned administrative law judge. The Commission shall
apply the same evidentiary standards, including, but not
limited to, those concerning the prudence and
reasonableness of the costs incurred by the utility,
during the proceeding as it would apply in a proceeding to
review a filing for a general increase in rates under
Article IX of this Act. The Commission shall not, however,
have the authority in a proceeding under this paragraph
(3) to consider or order any changes to the structure or

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protocols of the energy efficiency formula rate approved
under paragraph (2) of this subsection (d). In a
proceeding under this paragraph (3), the Commission shall
enter its order no later than the earlier of 195 days after
the utility's filing of its annual update of cost inputs
to the energy efficiency formula rate or December 15. The
utility's proposed return on equity calculation, as
described in paragraphs (7) through (9) of subsection (g)
of this Section, shall be deemed the final, approved
calculation on December 15 of the year in which it is filed
unless the Commission enters an order on or before
December 15, after notice and hearing, that modifies such
calculation consistent with this Section. The Commission's
determinations of the prudence and reasonableness of the
costs incurred, and determination of such return on equity
calculation, for the applicable calendar year shall be
final upon entry of the Commission's order and shall not
be subject to reopening, reexamination, or collateral
attack in any other Commission proceeding, case, docket,
order, rule, or regulation; however, nothing in this
paragraph (3) shall prohibit a party from petitioning the
Commission to rehear or appeal to the courts the order
under the provisions of this Act.
(e) Beginning on June 1, 2017 (the effective date of
Public Act 99-906), a utility subject to the requirements of
this Section may elect to defer, as a regulatory asset, up to

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the full amount of its expenditures incurred under this
Section for each annual period, including, but not limited to,
any expenditures incurred above the funding level set by
subsection (f) of this Section for a given year. The total
expenditures deferred as a regulatory asset in a given year
shall be amortized and recovered over a period that is equal to
the weighted average of the energy efficiency measure lives
implemented for that year that are reflected in the regulatory
asset. The unamortized balance shall be recognized as of
December 31 for a given year. The utility shall also earn a
return on the total of the unamortized balances of all of the
energy efficiency regulatory assets, less any deferred taxes
related to those unamortized balances, at an annual rate equal
to the utility's weighted average cost of capital that
includes, based on a year-end capital structure, the utility's
actual cost of debt for the applicable calendar year and a cost
of equity, which shall be calculated as the sum of the (i) the
average for the applicable calendar year of the monthly
average yields of 30-year U.S. Treasury bonds published by the
Board of Governors of the Federal Reserve System in its weekly
H.15 Statistical Release or successor publication; and (ii)
580 basis points, including a revenue conversion factor
calculated to recover or refund all additional income taxes
that may be payable or receivable as a result of that return.
Capital investment costs shall be depreciated and recovered
over their useful lives consistent with generally accepted

HB0804 Engrossed - 545 - LRB102 10881 SPS 16211 b
accounting principles. The weighted average cost of capital
shall be applied to the capital investment cost balance, less
any accumulated depreciation and accumulated deferred income
taxes, as of December 31 for a given year.
When an electric utility creates a regulatory asset under
the provisions of this Section, the costs are recovered over a
period during which customers also receive a benefit which is
in the public interest. Accordingly, it is the intent of the
General Assembly that an electric utility that elects to
create a regulatory asset under the provisions of this Section
shall recover all of the associated costs as set forth in this
Section. After the Commission has approved the prudence and
reasonableness of the costs that comprise the regulatory
asset, the electric utility shall be permitted to recover all
such costs, and the value and recoverability through rates of
the associated regulatory asset shall not be limited, altered,
impaired, or reduced.
(f) Beginning in 2017, each electric utility shall file an
energy efficiency plan with the Commission to meet the energy
efficiency standards for the next applicable multi-year period
beginning January 1 of the year following the filing,
according to the schedule set forth in paragraphs (1) through
(3) of this subsection (f). If a utility does not file such a
plan on or before the applicable filing deadline for the plan,
it shall face a penalty of $100,000 per day until the plan is
filed.

HB0804 Engrossed - 546 - LRB102 10881 SPS 16211 b
(1) No later than 30 days after June 1, 2017 (the
effective date of Public Act 99-906), each electric
utility shall file a 4-year energy efficiency plan
commencing on January 1, 2018 that is designed to achieve
the cumulative persisting annual savings goals specified
in paragraphs (1) through (4) of subsection (b-5) of this
Section or in paragraphs (1) through (4) of subsection
(b-15) of this Section, as applicable, through
implementation of energy efficiency measures; however, the
goals may be reduced if the utility's expenditures are
limited pursuant to subsection (m) of this Section or, for
a utility that serves less than 3,000,000 retail
customers, if each of the following conditions are met:
(A) the plan's analysis and forecasts of the utility's
ability to acquire energy savings demonstrate that
achievement of such goals is not cost effective; and (B)
the amount of energy savings achieved by the utility as
determined by the independent evaluator for the most
recent year for which savings have been evaluated
preceding the plan filing was less than the average annual
amount of savings required to achieve the goals for the
applicable 4-year plan period. Except as provided in
subsection (m) of this Section, annual increases in
cumulative persisting annual savings goals during the
applicable 4-year plan period shall not be reduced to
amounts that are less than the maximum amount of

HB0804 Engrossed - 547 - LRB102 10881 SPS 16211 b
cumulative persisting annual savings that is forecast to
be cost-effectively achievable during the 4-year plan
period. The Commission shall review any proposed goal
reduction as part of its review and approval of the
utility's proposed plan.
(2) No later than March 1, 2021, each electric utility
shall file a 4-year energy efficiency plan commencing on
January 1, 2022 that is designed to achieve the cumulative
persisting annual savings goals specified in paragraphs
(5) through (8) of subsection (b-5) of this Section or in
paragraphs (5) through (8) of subsection (b-15) of this
Section, as applicable, through implementation of energy
efficiency measures; however, the goals may be reduced if
either (1) clear and convincing evidence demonstrates,
through independent analysis, that the expenditure limits
in subsection (m) of this Section preclude full
achievement of the goals or (2) the utility's expenditures
are limited pursuant to subsection (m) of this Section or,
each of the following conditions are met: (A) the plan's
analysis and forecasts of the utility's ability to acquire
energy savings demonstrate by clear and convincing
evidence and through independent analysis that achievement
of such goals is not cost effective; and (B) the amount of
energy savings achieved by the utility as determined by
the independent evaluator for the most recent year for
which savings have been evaluated preceding the plan

HB0804 Engrossed - 548 - LRB102 10881 SPS 16211 b
filing was less than the average annual amount of savings
required to achieve the goals for the applicable 4-year
plan period. If there is any significant uncertainty
regarding whether achieving the savings goals specified in
paragraph (b-5) or (b-15) of this Section is possible both
cost-effectively and within the expenditure limits in
subsection (m), such savings goals shall not be reduced.
Except as provided in subsection (m) of this Section,
annual increases in cumulative persisting annual savings
goals during the applicable 4-year plan period shall not
be reduced to amounts that are less than the maximum
amount of cumulative persisting annual savings that is
forecast to be cost-effectively achievable during the
4-year plan period. The Commission shall review any
proposed goal reduction as part of its review and approval
of the utility's proposed plan, taking into account the
results of the potential study required by subsection
(f-5) of this Section.
(3) No later than March 1, 2025, each electric utility
shall file a 4-year 5-year energy efficiency plan
commencing on January 1, 2026 that is designed to achieve
the cumulative persisting annual savings goals specified
in paragraphs (9) through (12) (13) of subsection (b-5) of
this Section or in paragraphs (9) through (12) (13) of
subsection (b-15) of this Section, as applicable, through
implementation of energy efficiency measures; however, the

HB0804 Engrossed - 549 - LRB102 10881 SPS 16211 b
goals may be reduced if either (1) clear and convincing
evidence demonstrates, through independent analysis, that
the expenditure limits in subsection (m) of this Section
preclude full achievement of the goals or (2) the
utility's expenditures are limited pursuant to subsection
(m) of this Section or, each of the following conditions
are met: (A) the plan's analysis and forecasts of the
utility's ability to acquire energy savings demonstrate by
clear and convincing evidence and through independent
analysis that achievement of such goals is not cost
effective; and (B) the amount of energy savings achieved
by the utility as determined by the independent evaluator
for the most recent year for which savings have been
evaluated preceding the plan filing was less than the
average annual amount of savings required to achieve the
goals for the applicable 4-year 5-year plan period. If
there is any significant uncertainty regarding whether
achieving the savings goals specified in paragraphs (b-5)
or (b-15) of this Section is possible both
cost-effectively and within the expenditure limits in
subsection (m), such savings goals shall not be reduced.
Except as provided in subsection (m) of this Section,
annual increases in cumulative persisting annual savings
goals during the applicable 4-year 5-year plan period
shall not be reduced to amounts that are less than the
maximum amount of cumulative persisting annual savings

HB0804 Engrossed - 550 - LRB102 10881 SPS 16211 b
that is forecast to be cost-effectively achievable during
the 4-year 5-year plan period. The Commission shall review
any proposed goal reduction as part of its review and
approval of the utility's proposed plan, taking into
account the results of the potential study required by
subsection (f-5) of this Section.
(4) No later than March 1, 2029, and every 4 years
thereafter, each electric utility shall file a 4-year
energy efficiency plan commencing on January 1, 2030, and
every 4 years thereafter, respectively, that is designed
to achieve the cumulative persisting annual savings goals
established by the Illinois Commerce Commission pursuant
to direction of subsections (b-5) and (b-15) of this
Section, as applicable, through implementation of energy
efficiency measures; however, the goals may be reduced if
either (1) clear and convincing evidence and independent
analysis demonstrates that the expenditure limits in
subsection (m) of this Section preclude full achievement
of the goals or (2) each of the following conditions are
met: (A) the plan's analysis and forecasts of the
utility's ability to acquire energy savings demonstrate by
clear and convincing evidence and through independent
analysis that achievement of such goals is not
cost-effective; and (B) the amount of energy savings
achieved by the utility as determined by the independent
evaluator for the most recent year for which savings have

HB0804 Engrossed - 551 - LRB102 10881 SPS 16211 b
been evaluated preceding the plan filing was less than the
average annual amount of savings required to achieve the
goals for the applicable 4-year plan period. If there is
any significant uncertainty regarding whether achieving
the savings goals specified in paragraphs (b-5) or (b-15)
of this Section is possible both cost-effectively and
within the expenditure limits in subsection (m), such
savings goals shall not be reduced. Except as provided in
subsection (m) of this Section, annual increases in
cumulative persisting annual savings goals during the
applicable 4-year plan period shall not be reduced to
amounts that are less than the maximum amount of
cumulative persisting annual savings that is forecast to
be cost-effectively achievable during the 4-year plan
period. The Commission shall review any proposed goal
reduction as part of its review and approval of the
utility's proposed plan.
Each utility's plan shall set forth the utility's
proposals to meet the energy efficiency standards identified
in subsection (b-5) or (b-15), as applicable and as such
standards may have been modified under this subsection (f),
taking into account the unique circumstances of the utility's
service territory and results of an energy efficiency
potential study as described in subsection (f-5) of this
Section. For those plans commencing on January 1, 2018, the
Commission shall seek public comment on the utility's plan and

HB0804 Engrossed - 552 - LRB102 10881 SPS 16211 b
shall issue an order approving or disapproving each plan no
later than 105 days after June 1, 2017 (the effective date of
Public Act 99-906). For those plans commencing after December
31, 2021, the Commission shall seek public comment on the
utility's plan and shall issue an order approving or
disapproving each plan within 6 months after its submission.
If the Commission disapproves a plan, the Commission shall,
within 30 days, describe in detail the reasons for the
disapproval and describe a path by which the utility may file a
revised draft of the plan to address the Commission's concerns
satisfactorily. If the utility does not refile with the
Commission within 60 days, the utility shall be subject to
penalties at a rate of $100,000 per day until the plan is
filed. This process shall continue, and penalties shall
accrue, until the utility has successfully filed a portfolio
of energy efficiency and demand-response measures. Penalties
shall be deposited into the Energy Efficiency Trust Fund.
(f-5) Energy efficiency potential study. An energy
efficiency potential study shall be commissioned and overseen
by the Illinois Commerce Commission. The potential study shall
be a dual fuel study, addressing both gas and electric
efficiency potential, such that the requirements both in this
subsection (f-5) and in subsection (j-5) of Section 8-104.1
are met in an integrated and cost-efficient manner. The
potential study shall be reviewed as part of the approval of a
utility's plan filed pursuant to subsection (f) of this

HB0804 Engrossed - 553 - LRB102 10881 SPS 16211 b
Section. The potential study shall be designed and conducted
with input from a Potential Study Stakeholder Committee
established by the Commission. This Committee shall be
composed of representatives from each electric utility, the
Illinois Attorney General's office, at least 2 environmental
stakeholders, at least one community-based organization, and
additional parties representing consumers. The Committee shall
provide input, at a minimum, into the scope of work for the
studies, the selection of vendors to perform the studies in
accordance with appropriate confidentiality and conflict of
interest provisions, and draft work products. The Committee
shall make best efforts to achieve consensus on the key
elements of the potential study, including:
(i) savings potential from efficiency measures and
program concepts that are known at the time of the study;
(ii) likely emergence of new technology or new program
concepts that could emerge;
(iii) likely savings potential from efficiency
measures that may be unique to individual industries or
individual facilities; and
(iv) the experience of other similar utilities, areas
and jurisdictions in maximizing achievement of
cost-effective savings.
When the Committee is not able to reach consensus, the
Commission shall make the final decision.
(g) In submitting proposed plans and funding levels under

HB0804 Engrossed - 554 - LRB102 10881 SPS 16211 b
subsection (f) of this Section to meet the savings goals
identified in subsection (b-5) or (b-15) of this Section, as
applicable, the utility shall:
(1) Demonstrate that its proposed energy efficiency
measures will achieve the applicable requirements that are
identified in subsection (b-5) or (b-15) of this Section,
as modified by subsection (f) of this Section.
(2) (Blank). Present specific proposals to implement
new building and appliance standards that have been placed
into effect.
(2.5) Demonstrate consideration of program options for
(A) advancing new building codes, appliance standards, and
municipal regulations governing existing and new building
efficiency improvements and (B) supporting efforts to
improve compliance with new building codes, appliance
standards and municipal regulations, as potentially
cost-effective means of acquiring energy savings to count
toward savings goals.
(3) Demonstrate that its overall portfolio of
measures, not including low-income programs described in
subsection (c) of this Section, is cost-effective using
the total resource cost test or complies with paragraphs
(1) through (3) of subsection (f) of this Section and
represents a diverse cross-section of opportunities for
customers of all rate classes, other than those customers
described in subsection (l) of this Section, to

HB0804 Engrossed - 555 - LRB102 10881 SPS 16211 b
participate in the programs. Individual measures need not
be cost effective.
(3.5) Demonstrate that the utility's plan integrates
the delivery of energy efficiency programs with natural
gas efficiency programs, programs promoting distributed
solar, programs promoting demand response and other
efforts to address bill payment issues, including, but not
limited to, LIHEAP and the Percentage of Income Payment
Plan, to the extent such integration is practical and has
the potential to enhance customer engagement, minimize
market confusion, or reduce administrative costs.
(4) Present a third-party energy efficiency
implementation program subject to the following
requirements:
(A) beginning with the year commencing January 1,
2019, electric utilities that serve more than
3,000,000 retail customers in the State shall fund
third-party energy efficiency programs in an amount
that is no less than $25,000,000 per year, and
electric utilities that serve less than 3,000,000
retail customers but more than 500,000 retail
customers in the State shall fund third-party energy
efficiency programs in an amount that is no less than
$8,350,000 per year;
(B) during 2018, the utility shall conduct a
solicitation process for purposes of requesting

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proposals from third-party vendors for those
third-party energy efficiency programs to be offered
during one or more of the years commencing January 1,
2019, January 1, 2020, and January 1, 2021; for those
multi-year plans commencing on January 1, 2022 and
January 1, 2026, the utility shall conduct a
solicitation process during 2021 and 2025,
respectively, for purposes of requesting proposals
from third-party vendors for those third-party energy
efficiency programs to be offered during one or more
years of the respective multi-year plan period; for
each solicitation process, the utility shall identify
the sector, technology, or geographical area for which
it is seeking requests for proposals; the solicitation
process must be either for programs that fill gaps in
the utility's program portfolio or for programs that
target business sectors, building types, geographies,
or other specific parts of its customer base with
initiatives that would be more effective at reaching
these customer segments than the utilities' programs
filed in its energy efficiency plans;
(C) the utility shall propose the bidder
qualifications, performance measurement process, and
contract structure, which must include a performance
payment mechanism and general terms and conditions;
the proposed qualifications, process, and structure

HB0804 Engrossed - 557 - LRB102 10881 SPS 16211 b
shall be subject to Commission approval; and
(D) the utility shall retain an independent third
party to score the proposals received through the
solicitation process described in this paragraph (4),
rank them according to their cost per lifetime
kilowatt-hours saved, and assemble the portfolio of
third-party programs.
The electric utility shall recover all costs
associated with Commission-approved, third-party
administered programs regardless of the success of those
programs.
(4.5) Implement cost-effective demand-response
measures to reduce peak demand by 0.1% over the prior year
for eligible retail customers, as defined in Section
16-111.5 of this Act, and for customers that elect hourly
service from the utility pursuant to Section 16-107 of
this Act, provided those customers have not been declared
competitive. This requirement continues until December 31,
2026.
(5) Include a proposed or revised cost-recovery tariff
mechanism, as provided for under subsection (d) of this
Section, to fund the proposed energy efficiency and
demand-response measures and to ensure the recovery of the
prudently and reasonably incurred costs of
Commission-approved programs.
(6) Provide for an annual independent evaluation of

HB0804 Engrossed - 558 - LRB102 10881 SPS 16211 b
the performance of the cost-effectiveness of the utility's
portfolio of measures, as well as a full review of the
multi-year plan results of the broader net program impacts
and, to the extent practical, for adjustment of the
measures on a going-forward basis as a result of the
evaluations. The resources dedicated to evaluation shall
not exceed 3% of portfolio resources in any given year.
(7) For electric utilities that serve more than
3,000,000 retail customers in the State:
(A) Through December 31, 2025, provide for an
adjustment to the return on equity component of the
utility's weighted average cost of capital calculated
under subsection (d) of this Section:
(i) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is less than the applicable
annual incremental goal, then the return on equity
component shall be reduced by a maximum of 200
basis points in the event that the utility
achieved no more than 75% of such goal. If the
utility achieved more than 75% of the applicable
annual incremental goal but less than 100% of such
goal, then the return on equity component shall be
reduced by 8 basis points for each percent by
which the utility failed to achieve the goal.
(ii) If the independent evaluator determines

HB0804 Engrossed - 559 - LRB102 10881 SPS 16211 b
that the utility achieved a cumulative persisting
annual savings that is more than the applicable
annual incremental goal, then the return on equity
component shall be increased by a maximum of 200
basis points in the event that the utility
achieved at least 125% of such goal. If the
utility achieved more than 100% of the applicable
annual incremental goal but less than 125% of such
goal, then the return on equity component shall be
increased by 8 basis points for each percent by
which the utility achieved above the goal. If the
applicable annual incremental goal was reduced
under paragraphs (1) or (2) of subsection (f) of
this Section, then the following adjustments shall
be made to the calculations described in this item
(ii):
(aa) the calculation for determining
achievement that is at least 125% of the
applicable annual incremental goal shall use
the unreduced applicable annual incremental
goal to set the value; and
(bb) the calculation for determining
achievement that is less than 125% but more
than 100% of the applicable annual incremental
goal shall use the reduced applicable annual
incremental goal to set the value for 100%

HB0804 Engrossed - 560 - LRB102 10881 SPS 16211 b
achievement of the goal and shall use the
unreduced goal to set the value for 125%
achievement. The 8 basis point value shall
also be modified, as necessary, so that the
200 basis points are evenly apportioned among
each percentage point value between 100% and
125% achievement.
(B) For the period January 1, 2026 through
December 31, 2029 and in all subsequent 4-year periods
2030, provide for an adjustment to the return on
equity component of the utility's weighted average
cost of capital calculated under subsection (d) of
this Section:
(i) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is less than the applicable
annual incremental goal, then the return on equity
component shall be reduced by a maximum of 200
basis points in the event that the utility
achieved no more than 66% of such goal. If the
utility achieved more than 66% of the applicable
annual incremental goal but less than 100% of such
goal, then the return on equity component shall be
reduced by 6 basis points for each percent by
which the utility failed to achieve the goal.
(ii) If the independent evaluator determines

HB0804 Engrossed - 561 - LRB102 10881 SPS 16211 b
that the utility achieved a cumulative persisting
annual savings that is more than the applicable
annual incremental goal, then the return on equity
component shall be increased by a maximum of 200
basis points in the event that the utility
achieved at least 134% of such goal. If the
utility achieved more than 100% of the applicable
annual incremental goal but less than 134% of such
goal, then the return on equity component shall be
increased by 6 basis points for each percent by
which the utility achieved above the goal. If the
applicable annual incremental goal was reduced
under paragraph (3) of subsection (f) of this
Section, then the following adjustments shall be
made to the calculations described in this item
(ii):
(aa) the calculation for determining
achievement that is at least 134% of the
applicable annual incremental goal shall use
the unreduced applicable annual incremental
goal to set the value; and
(bb) the calculation for determining
achievement that is less than 134% but more
than 100% of the applicable annual incremental
goal shall use the reduced applicable annual
incremental goal to set the value for 100%

HB0804 Engrossed - 562 - LRB102 10881 SPS 16211 b
achievement of the goal and shall use the
unreduced goal to set the value for 134%
achievement. The 6 basis point value shall
also be modified, as necessary, so that the
200 basis points are evenly apportioned among
each percentage point value between 100% and
134% achievement.
(C) Notwithstanding the provisions of
subparagraphs (A) and (B) of this paragraph (7), if
the applicable annual incremental goal for an electric
utility is ever less than 0.6% of deemed average
weather normalized sales of electric power and energy
during calendar years 2014, 2015, and 2016, an
adjustment to the return on equity component of the
utility's weighted average cost of capital calculated
under subsection (d) of this Section shall be made as
follows:
(i) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is less than would have been
achieved had the applicable annual incremental
goal been achieved, then the return on equity
component shall be reduced by a maximum of 200
basis points if the utility achieved no more than
75% of its applicable annual total savings
requirement as defined in paragraph (7.5) of this

HB0804 Engrossed - 563 - LRB102 10881 SPS 16211 b
subsection. If the utility achieved more than 75%
of the applicable annual total savings requirement
but less than 100% of such goal, then the return on
equity component shall be reduced by 8 basis
points for each percent by which the utility
failed to achieve the goal.
(ii) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is more than would have been
achieved had the applicable annual incremental
goal been achieved, then the return on equity
component shall be increased by a maximum of 200
basis points if the utility achieved at least 125%
of its applicable annual total savings
requirement. If the utility achieved more than
100% of the applicable annual total savings
requirement but less than 125% of such goal, then
the return on equity component shall be increased
by 8 basis points for each percent by which the
utility achieved above the applicable annual total
savings requirement. If the applicable annual
incremental goal was reduced under paragraphs (1)
or (2) of subsection (f) of this Section, then the
following adjustments shall be made to the
calculations described in this item (ii):
(aa) the calculation for determining

HB0804 Engrossed - 564 - LRB102 10881 SPS 16211 b
achievement that is at least 125% of the
applicable annual total savings requirement
shall use the unreduced applicable annual
incremental goal to set the value; and
(bb) the calculation for determining
achievement that is less than 125% but more
than 100% of the applicable annual total
savings requirement shall use the reduced
applicable annual incremental goal to set the
value for 100% achievement of the goal and
shall use the unreduced goal to set the value
for 125% achievement. The 8 basis point value
shall also be modified, as necessary, so that
the 200 basis points are evenly apportioned
among each percentage point value between 100%
and 125% achievement.
(7.5) For purposes of this Section, the term
"applicable annual incremental goal" means the difference
between the cumulative persisting annual savings goal for
the calendar year that is the subject of the independent
evaluator's determination and the cumulative persisting
annual savings goal for the immediately preceding calendar
year, as such goals are defined in subsections (b-5) and
(b-15) of this Section and as these goals may have been
modified as provided for under subsection (b-20) and
paragraphs (1) through (3) of subsection (f) of this

HB0804 Engrossed - 565 - LRB102 10881 SPS 16211 b
Section. Under subsections (b), (b-5), (b-10), and (b-15)
of this Section, a utility must first replace energy
savings from measures that have expired reached the end of
their measure lives and would otherwise have to be
replaced to meet the applicable savings goals identified
in subsection (b-5) or (b-15) of this Section before any
progress towards achievement of its applicable annual
incremental goal may be counted. Savings may expire
because measures installed in previous years have reached
the end of their lives, because measures installed in
previous years are producing lower savings in the current
year than in the previous year, or for other reasons
identified by independent evaluators. Notwithstanding
anything else set forth in this Section, the difference
between the actual annual incremental savings achieved in
any given year, including the replacement of energy
savings from measures that have expired, and the
applicable annual incremental goal shall not affect
adjustments to the return on equity for subsequent
calendar years under this subsection (g).
In this Section, "applicable annual total savings
requirement" means the total amount of new annual savings
that the utility must achieve in any given year to achieve
the applicable annual incremental goal. This is equal to
the applicable annual incremental goal plus the total new
annual savings that are required to replace savings that

HB0804 Engrossed - 566 - LRB102 10881 SPS 16211 b
expired in or at the end of the previous year.
(8) For electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State:
(A) Through December 31, 2025, the applicable
annual incremental goal shall be compared to the
annual incremental savings as determined by the
independent evaluator.
(i) The return on equity component shall be
reduced by 8 basis points for each percent by
which the utility did not achieve 84.4% of the
applicable annual incremental goal.
(ii) The return on equity component shall be
increased by 8 basis points for each percent by
which the utility exceeded 100% of the applicable
annual incremental goal.
(iii) The return on equity component shall not
be increased or decreased if the annual
incremental savings as determined by the
independent evaluator is greater than 84.4% of the
applicable annual incremental goal and less than
100% of the applicable annual incremental goal.
(iv) The return on equity component shall not
be increased or decreased by an amount greater
than 200 basis points pursuant to this
subparagraph (A).

HB0804 Engrossed - 567 - LRB102 10881 SPS 16211 b
(B) For the period of January 1, 2026 through
December 31, 2029 and in all subsequent 4-year periods
2030, the applicable annual incremental goal shall be
compared to the annual incremental savings as
determined by the independent evaluator.
(i) The return on equity component shall be
reduced by 6 basis points for each percent by
which the utility did not achieve 100% of the
applicable annual incremental goal.
(ii) The return on equity component shall be
increased by 6 basis points for each percent by
which the utility exceeded 100% of the applicable
annual incremental goal.
(iii) The return on equity component shall not
be increased or decreased by an amount greater
than 200 basis points pursuant to this
subparagraph (B).
(C) Notwithstanding provisions in subparagraphs
(A) and (B) of paragraph (7) of this subsection, if the
applicable annual incremental goal for an electric
utility is ever less than 0.6% of deemed average
weather normalized sales of electric power and energy
during calendar years 2014, 2015 and 2016, an
adjustment to the return on equity component of the
utility's weighted average cost of capital calculated
under subsection (d) of this Section shall be made as

HB0804 Engrossed - 568 - LRB102 10881 SPS 16211 b
follows:
(i) The return on equity component shall be
reduced by 8 basis points for each percent by
which the utility did not achieve 100% of the
applicable annual total savings requirement.
(ii) The return on equity component shall be
increased by 8 basis points for each percent by
which the utility exceeded 100% of the applicable
annual total savings requirement.
(iii) The return on equity component shall not
be increased or decreased by an amount greater
than 200 basis points pursuant to this
subparagraph (C).
(D) (C) If the applicable annual incremental goal
was reduced under paragraphs (1), (2), or (3), or (4)
of subsection (f) of this Section, then the following
adjustments shall be made to the calculations
described in subparagraphs (A), and (B), and (C) of
this paragraph (8):
(i) The calculation for determining
achievement that is at least 125% or 134%, as
applicable, of the applicable annual incremental
goal or the applicable annual total savings
requirement, as applicable, shall use the
unreduced applicable annual incremental goal to
set the value.

HB0804 Engrossed - 569 - LRB102 10881 SPS 16211 b
(ii) For the period through December 31, 2025,
the calculation for determining achievement that
is less than 125% but more than 100% of the
applicable annual incremental goal or the
applicable annual total savings requirement, as
applicable, shall use the reduced applicable
annual incremental goal to set the value for 100%
achievement of the goal and shall use the
unreduced goal to set the value for 125%
achievement. The 8 basis point value shall also be
modified, as necessary, so that the 200 basis
points are evenly apportioned among each
percentage point value between 100% and 125%
achievement.
(iii) For the period of January 1, 2026
through December 31, 2029 and all subsequent
4-year periods, the calculation for determining
achievement that is less than 125% or 134%, as
applicable, but more than 100% of the applicable
annual incremental goal or the applicable annual
total savings requirement, as applicable, shall
use the reduced applicable annual incremental goal
to set the value for 100% achievement of the goal
and shall use the unreduced goal to set the value
for 125% achievement. The 6 or 8 basis point
values, as applicable, shall also be modified, as

HB0804 Engrossed - 570 - LRB102 10881 SPS 16211 b
necessary, so that the 200 basis points are evenly
apportioned among each percentage point value
between 100% and 125% or between 100% and 134%
achievement, as applicable 2030, the calculation
for determining achievement that is less than 134%
but more than 100% of the applicable annual
incremental goal shall use the reduced applicable
annual incremental goal to set the value for 100%
achievement of the goal and shall use the
unreduced goal to set the value for 125%
achievement. The 6 basis point value shall also be
modified, as necessary, so that the 200 basis
points are evenly apportioned among each
percentage point value between 100% and 134%
achievement.
(9) The utility shall submit the energy savings data
to the independent evaluator no later than 30 days after
the close of the plan year. The independent evaluator
shall determine the cumulative persisting annual savings
for a given plan year, as well as an estimate of job
impacts and other macroeconomic impacts of the efficiency
programs for that year, no later than 120 days after the
close of the plan year. The utility shall submit an
informational filing to the Commission no later than 160
days after the close of the plan year that attaches the
independent evaluator's final report identifying the

HB0804 Engrossed - 571 - LRB102 10881 SPS 16211 b
cumulative persisting annual savings for the year and
calculates, under paragraph (7) or (8) of this subsection
(g), as applicable, any resulting change to the utility's
return on equity component of the weighted average cost of
capital applicable to the next plan year beginning with
the January monthly billing period and extending through
the December monthly billing period. However, if the
utility recovers the costs incurred under this Section
under paragraphs (2) and (3) of subsection (d) of this
Section, then the utility shall not be required to submit
such informational filing, and shall instead submit the
information that would otherwise be included in the
informational filing as part of its filing under paragraph
(3) of such subsection (d) that is due on or before June 1
of each year.
For those utilities that must submit the informational
filing, the Commission may, on its own motion or by
petition, initiate an investigation of such filing,
provided, however, that the utility's proposed return on
equity calculation shall be deemed the final, approved
calculation on December 15 of the year in which it is filed
unless the Commission enters an order on or before
December 15, after notice and hearing, that modifies such
calculation consistent with this Section.
The adjustments to the return on equity component
described in paragraphs (7) and (8) of this subsection (g)

HB0804 Engrossed - 572 - LRB102 10881 SPS 16211 b
shall be applied as described in such paragraphs through a
separate tariff mechanism, which shall be filed by the
utility under subsections (f) and (g) of this Section.
(9.5) The utility must demonstrate how it will ensure
that program implementation contractors and energy
efficiency installation vendors will meet multiple
workforce equity building criteria, including, but not
limited to:
(i) Ensuring that an amount of program portfolio
incentive funding proportional to the population of
BIPOC persons within the utility's territory, as
updated every 2 years, is administered or installed by
energy efficiency installation vendors who meet one of
the following criteria:
(aa) certified under Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act; or
(bb) certified by another municipal, state,
federal, or other certification for disadvantaged
businesses; or
(cc) submit an affidavit showing that the
vendor meets the eligibility criteria for a
certification program such as those in subdivision
(aa) or (bb); or
(dd) if the vendor is a nonprofit, meet any of
the criteria in subdivision (aa), (bb), or (cc) or

HB0804 Engrossed - 573 - LRB102 10881 SPS 16211 b
is controlled by a board of directors that
consists of 51% or greater individuals who are
minorities, women, or persons with a disability as
defined by the Business Enterprise for Minorities,
Women, and Persons with a Disability Act.
(ii) Ensuring that program implementation
contractors and energy efficiency installation vendors
pay employees working on energy efficiency programs at
or above the prevailing wage rate when such a wage rate
has been published by the Illinois Department of Labor
and pay employees working on energy efficiency
programs at or above the median wage rate for a similar
job description in the nearest metropolitan area when
there is no applicable published prevailing wage rate.
If necessary, utilities may conduct surveys to
establish the median wage rate for a given job
description. Utilities shall establish reporting
procedures for vendors that ensure compliance with
this subsection, but are structured to avoid, wherever
possible, placing an undue administrative burden on
vendors.
(iii) Ensuring that program implementation
contractor employees and energy efficiency
installation vendor employees are proportional to the
population of BIPOC persons, within the utility's
territory, as updated every 2 years.

HB0804 Engrossed - 574 - LRB102 10881 SPS 16211 b
(iv) Ensuring that 30% or more of the energy
efficiency installation vendor employees working for
vendors reporting to each program implementation
contractor are graduates of or trainees in the Clean
Energy Workforce Training Hubs programs, Returning
Residents Clean Jobs training programs, or similar
programs offering equivalent certifications.
(v) Ensuring that vendors who are very small
businesses of 5 or fewer full-time employees,
businesses that have completed or are participating in
the Expanding Clean Energy Entrepreneurship and
Contractor Incubator Network Program, and businesses
that have completed or are participating in the
Illinois Clean Energy Black, Indigenous, and People of
Color Primes Contractor Accelerator, receive a
substantial portion of program portfolio funding.
Utility plans to achieve this shall include efforts to
provide the necessary training and administrative
support needed for very small businesses to meet
utility-mandated training, certification, insurance,
and security-related contract requirements.
(9.6) Utilities shall collect data necessary to ensure
compliance with paragraph (9.5) no less than quarterly and
shall communicate progress toward compliance with
paragraph (9.5) to program implementation contractors and
energy efficiency installation vendors no less than

HB0804 Engrossed - 575 - LRB102 10881 SPS 16211 b
quarterly. When it seems unlikely that the criteria in
paragraph (9.5) will be met, utilities shall work with
relevant vendors, providing education, training, and other
resources needed to ensure compliance and, where
necessary, adjusting or terminating work with vendors that
cannot assist with compliance.
(10) Utilities required to implement efficiency
programs under subsections (b-5) and (b-10) shall report
annually to the Illinois Commerce Commission and the
General Assembly on how hiring, contracting, job training,
and other practices related to its energy efficiency
programs enhance the diversity of vendors working on such
programs. These reports must include data on vendor and
employee diversity, including data on the implementation
of paragraphs (9.5) and (9.6). If the utility is not
meeting the requirements of paragraphs (9.5) and (9.6),
the utility shall submit a plan to adjust their activities
so that they meet the requirements of paragraphs (9.5) and
(9.6) within the following year.
(h) No more than 6% of energy efficiency and
demand-response program revenue may be allocated for research,
development, or pilot deployment of new equipment or measures.
(i) When practicable, electric utilities shall incorporate
advanced metering infrastructure data into the planning,
implementation, and evaluation of energy efficiency measures
and programs, subject to the data privacy and confidentiality

HB0804 Engrossed - 576 - LRB102 10881 SPS 16211 b
protections of applicable law.
(j) The independent evaluator shall follow the guidelines
and use the savings set forth in Commission-approved energy
efficiency policy manuals and technical reference manuals, as
each may be updated from time to time. Until such time as
measure life values for energy efficiency measures implemented
for low-income households under subsection (c) of this Section
are incorporated into such Commission-approved manuals, the
low-income measures shall have the same measure life values
that are established for same measures implemented in
households that are not low-income households.
(k) Notwithstanding any provision of law to the contrary,
an electric utility subject to the requirements of this
Section may file a tariff cancelling an automatic adjustment
clause tariff in effect under this Section or Section 8-103,
which shall take effect no later than one business day after
the date such tariff is filed. Thereafter, the utility shall
be authorized to defer and recover its expenditures incurred
under this Section through a new tariff authorized under
subsection (d) of this Section or in the utility's next rate
case under Article IX or Section 16-108.5 of this Act, with
interest at an annual rate equal to the utility's weighted
average cost of capital as approved by the Commission in such
case. If the utility elects to file a new tariff under
subsection (d) of this Section, the utility may file the
tariff within 10 days after June 1, 2017 (the effective date of

HB0804 Engrossed - 577 - LRB102 10881 SPS 16211 b
Public Act 99-906), and the cost inputs to such tariff shall be
based on the projected costs to be incurred by the utility
during the calendar year in which the new tariff is filed and
that were not recovered under the tariff that was cancelled as
provided for in this subsection. Such costs shall include
those incurred or to be incurred by the utility under its
multi-year plan approved under subsections (f) and (g) of this
Section, including, but not limited to, projected capital
investment costs and projected regulatory asset balances with
correspondingly updated depreciation and amortization reserves
and expense. The Commission shall, after notice and hearing,
approve, or approve with modification, such tariff and cost
inputs no later than 75 days after the utility filed the
tariff, provided that such approval, or approval with
modification, shall be consistent with the provisions of this
Section to the extent they do not conflict with this
subsection (k). The tariff approved by the Commission shall
take effect no later than 5 days after the Commission enters
its order approving the tariff.
No later than 60 days after the effective date of the
tariff cancelling the utility's automatic adjustment clause
tariff, the utility shall file a reconciliation that
reconciles the moneys collected under its automatic adjustment
clause tariff with the costs incurred during the period
beginning June 1, 2016 and ending on the date that the electric
utility's automatic adjustment clause tariff was cancelled. In

HB0804 Engrossed - 578 - LRB102 10881 SPS 16211 b
the event the reconciliation reflects an under-collection, the
utility shall recover the costs as specified in this
subsection (k). If the reconciliation reflects an
over-collection, the utility shall apply the amount of such
over-collection as a one-time credit to retail customers'
bills.
(l) (Blank). For the calendar years covered by a
multi-year plan commencing after December 31, 2017,
subsections (a) through (j) of this Section do not apply to any
retail customers of an electric utility that serves more than
3,000,000 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. For purposes of this
subsection (l), "retail customer" has the meaning set forth in
Section 16-102 of this Act. A determination of whether this
subsection is applicable to a customer shall be made for each
multi-year plan beginning after December 31, 2017. The
criteria for determining whether this subsection (l) is
applicable to a retail customer shall be based on the 12
consecutive billing periods prior to the start of the first
year of each such multi-year plan.
(m) Notwithstanding the requirements of this Section, as
part of a proceeding to approve a multi-year plan under

HB0804 Engrossed - 579 - LRB102 10881 SPS 16211 b
subsections (f) and (g) of this Section if the multi-year plan
has been designed to maximize savings, but does not meet the
cost cap limitations of this subsection, the Commission shall
reduce the amount of energy efficiency measures implemented
for any single year, and whose costs are recovered under
subsection (d) of this Section, by an amount necessary to
limit the estimated average net increase due to the cost of the
measures to no more than
(1) 3.5% for each of the 4 years beginning January 1,
2018,
(2) (blank), 3.75% for each of the 4 years beginning
January 1, 2022, and
(3) 4% for each of the 4 5 years beginning January 1,
2022 2026,
(4) 4.25% for the 4 years beginning January 1, 2026,
and
(5) 4.25% plus an increase sufficient to account for
the rate of inflation between January 1, 2026 and January
1 of the first year of each subsequent 4-year plan cycle,
of the average amount paid per kilowatthour by residential
eligible retail customers during calendar year 2015. An
electric utility may plan to spend up to 10% more in any year
during an applicable multi-year plan period to
cost-effectively achieve additional savings so long as the
average over the applicable multi-year plan period does not
exceed the percentages defined in items (1) through (5). To

HB0804 Engrossed - 580 - LRB102 10881 SPS 16211 b
determine the total amount that may be spent by an electric
utility in any single year, the applicable percentage of the
average amount paid per kilowatthour shall be multiplied by
the total amount of energy delivered by such electric utility
in the calendar year 2015, adjusted to reflect the proportion
of the utility's load attributable to customers who are exempt
from subsections (a) through (j) of this Section under
subsection (l) of this Section. For purposes of this
subsection (m), the amount paid per kilowatthour includes,
without limitation, estimated amounts paid for supply,
transmission, distribution, surcharges, and add-on taxes. For
purposes of this Section, "eligible retail customers" shall
have the meaning set forth in Section 16-111.5 of this Act.
Once the Commission has approved a plan under subsections (f)
and (g) of this Section, no subsequent rate impact
determinations shall be made.
(Source: P.A. 100-840, eff. 8-13-18; 101-81, eff. 7-12-19.)
(220 ILCS 5/8-104.1 new)
Sec. 8-104.1. Gas utilities; annual savings goals.
(a) It is the policy of the State that gas utilities are
required to use cost-effective energy efficiency to reduce
delivery load. Requiring investment in cost-effective energy
efficiency will reduce direct and indirect costs to consumers
by decreasing environmental impacts and by reducing the amount
of natural gas that needs to be purchased and avoiding or

HB0804 Engrossed - 581 - LRB102 10881 SPS 16211 b
delaying the need for new transmission, distribution, storage
and other related infrastructure. It serves the public
interest to allow gas utilities to recover costs for
reasonably and prudently incurred expenditures for energy
efficiency measures.
(b) In this Section:
"Cost-effective" means that the measures satisfy the total
resource cost test that, for purposes of this Section, means a
standard that is met if, for an investment in energy
efficiency, the benefit-cost ratio is greater than one. The
benefit-cost ratio is the ratio of the net present value of the
total benefits of the measures to the net present value of the
total costs as calculated over the lifetime of the measures.
The total resource cost test compares the sum of avoided
natural gas utility costs, representing the benefits that
accrue to the natural gas system and the participant in the
delivery of those efficiency measures and including avoided
costs associated with the use of electricity or other fuels,
avoided cost associated with reduced water consumption, and
avoided costs associated with reduced operation and
maintenance costs, as well as other quantifiable societal
benefits, to the sum of all incremental costs of end-use
measures (including both utility and participant
contributions), plus costs to administer, deliver, and
evaluate each demand-side measure, to quantify the net savings
obtained by substituting demand-side measures for supply

HB0804 Engrossed - 582 - LRB102 10881 SPS 16211 b
resources. In calculating avoided costs, reasonable estimates
shall be included for financial costs likely to be imposed by
future regulation of emissions of greenhouse gases. In
discounting future societal costs and benefits for the purpose
of calculating net present values, a societal discount rate
based on actual, long-term Treasury bond yields shall be used.
The low-income measures described in subsection (f) of this
Section shall not be required to meet the total resource cost
test.
"Cumulative persisting annual savings" means the total gas
energy savings in a given year from measures installed in that
year or in previous years, but no earlier than January 1, 2022,
that are still operational and providing savings in that year
because the measures have not yet reached the end of their
useful lives.
"Energy efficiency" means measures that reduce the amount
of energy required to achieve a given end use. "Energy
efficiency" also includes measures that reduce the total Btus
of electricity and natural gas needed to meet the end use or
uses. "Black, indigenous, and people of color" and "BIPOC"
means people who are members of the groups described in
subparagraphs (a) through (e) of paragraph (A) of subsection
(1) of Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act. "Expanding Clean
Energy Entrepreneurship and Contractor Incubator Network
Program," "Clean Energy Black, Indigenous, and People of Color

HB0804 Engrossed - 583 - LRB102 10881 SPS 16211 b
Primes Contractor Accelerator," "Returning Resident Clean
Energy Training Program," and "Clean Energy Workforce Training
Hubs Program" are as set forth in the Clean Jobs, Workforce and
Contractor Equity Act.
(c) This Section applies to all gas distribution utilities
in the State for those multi-year plans that include energy
efficiency programs commencing after December 31, 2022.
(d) Beginning in 2023, gas utilities subject to this
Section shall achieve the following cumulative persisting
annual savings goals, as compared to a deemed baseline
equivalent to the utility's average annual therm throughput in
2016 through 2020 through the implementation of energy
efficiency measures during the applicable year and in prior
years, but no earlier than January 1, 2023:
(1) 1.2% cumulative persisting annual savings for the
year ending December 31, 2023;
(2) 2.1% cumulative persisting annual savings for the
year ending December 31, 2024;
(3) 3.0% cumulative persisting annual savings for the
year ending December 31, 2025;
(4) 3.9% cumulative persisting annual savings for the
year ending December 31, 2026;
(5) 4.8% cumulative persisting annual savings for the
year ending December 31, 2027;
(6) 5.7% cumulative persisting annual savings for the
year ending December 31, 2028;

HB0804 Engrossed - 584 - LRB102 10881 SPS 16211 b
(7) 6.6% cumulative persisting annual savings for the
year ending December 31, 2029;
(8) 7.4% cumulative persisting annual savings for the
year ending December 31, 2030;
(9) 8.2% cumulative persisting annual savings for the
year ending December 31, 2031;
(10) 9.0% cumulative persisting annual savings for the
year ending December 31, 2032;
(11) 9.8% cumulative persisting annual savings for the
year ending December 31, 2033;
(12) 10.6% cumulative persisting annual savings for
the year ending December 31, 2034;
(13) 11.4% cumulative persisting annual savings for
the year ending December 31, 2035;
(14) 12.1% cumulative persisting annual savings for
the year ending December 31, 2036; and
(15) 12.8% cumulative persisting annual savings for
the year ending December 31, 2037.
No later than December 31, 2025, the Illinois Commerce
Commission shall establish additional cumulative persisting
annual savings goals for the years 2037 through 2041. The
Commission shall also establish additional cumulative
persisting annual savings goals every 5 years thereafter to
ensure utilities always have goals that extend at least 11
years into the future. The cumulative persisting annual
savings goals beyond the year 2035 shall increase by 0.6

HB0804 Engrossed - 585 - LRB102 10881 SPS 16211 b
percentage points per year absent a Commission decision to
initiate a proceeding to consider establishing goals that
increase by more or less than that amount. Such a proceeding
must be conducted in accordance with the procedures described
in subsection (f) of this Section. If such a proceeding is
initiated, the cumulative persisting annual savings goals
established by the Commission through that proceeding shall
reflect the Commission's best estimate of the maximum amount
of additional gas savings that are forecast to be
cost-effectively achievable unless such best estimates would
result in goals that represent less than 0.4 percentage point
annual increases in total cumulative persisting annual
savings. The Commission may only establish goals that
represent less than 0.4 percentage point annual increases in
cumulative persisting annual savings if it can demonstrate,
based on clear and convincing evidence, that 0.4 percentage
point increases are not cost-effectively achievable. The
Commission shall inform its decision based on an energy
efficiency potential study that conforms to the requirements
of subsection (j-5) of this Section.
(e) If a gas utility jointly offers an energy efficiency
measure or program with an electric utility under plans
approved under this Section and Section 8-103B of this Act,
the gas utility may continue offering the program, including
the electric energy efficiency measures, if the electric
utility discontinues funding the program. In that event, the

HB0804 Engrossed - 586 - LRB102 10881 SPS 16211 b
energy-savings value associated with such other fuels shall be
converted to gas energy savings on an equivalent Btu basis for
the premises. However, the gas utility shall prioritize
programs for low-income residential customers to the extent
practicable. A gas utility may recover the costs of offering
the gas energy efficiency measures under this subsection (e).
For those energy efficiency measures or programs that save
both gas and other fuels but are not jointly offered with an
electric utility under plans approved under this Section and
Section 8-103B, the gas utility may count savings of fuels
other than gas toward the achievement of its annual savings
goal, and the energy-savings value associated with such other
fuels shall be converted to gas energy savings on an
equivalent Btu basis at the premises.
In no event shall more than 10% of each year's applicable
annual total savings requirement as defined in paragraph (8)
of subsection (j) of this Section be met through savings of
fuels other than gas.
(f) Gas utilities are responsible for overseeing the
design, development, and filing of energy efficiency plans
with the Commission and may, as part of that implementation,
outsource various aspects of program development and
implementation. A minimum of 10% of the utility's entire
portfolio funding level for a given year shall be used to
procure cost-effective energy efficiency measures from units
of local government, municipal corporations, school districts,

HB0804 Engrossed - 587 - LRB102 10881 SPS 16211 b
public housing, community college districts, and
nonprofit-owned buildings provided that a minimum percentage
of available funds shall be used to procure energy efficiency
from public housing, which percentage shall be equal to public
housing's share of public building energy consumption.
The utilities shall also implement energy efficiency
measures targeted at low-income single-family and multifamily
households, which, as used in this Section, means households
at or below 80% of area median income, and expenditures to
implement the measures shall be no less than 25% of the
utility's total efficiency portfolio budget.
At least 70% of spending on programs targeted at
low-income households shall go toward integrated whole
building efficiency programs, as defined in subsection (g), or
individual measures that reduce space heating needs through
improvements to the building envelope, heating distribution
systems, or heating system controls. In implementing these
programs, utilities shall ensure that thermal insulating
materials used in the building envelope do not contain any
substance that is a Category 1 respiratory sensitizer as
defined by Appendix A to 29 CFR 1910.1200 (Health Hazard
Criteria: A.4 Respiratory or Skin Sensitization) that was
intentionally added or is present at greater than 0.1% (1000
ppm) by weight in the product. Programs targeted at low-income
households, which address single-family and multifamily
buildings shall be treated such that forecast savings to be

HB0804 Engrossed - 588 - LRB102 10881 SPS 16211 b
achieved in each building type are approximately in
proportional to the magnitude of cost-effective energy
efficiency opportunities in these respective building types.
Each gas utility shall assess opportunities to implement
cost-effective energy efficiency measures and programs through
a public-housing authority or authorities located in its
service territory. If such opportunities are identified, the
utility shall propose such measures and programs to address
the opportunities. Expenditures to address such opportunities
shall be credited toward the minimum procurement and
expenditure requirements set forth in this subsection (f).
Implementation of energy efficiency measures and programs
targeted at low-income households shall be contracted, when it
is practical, to independent third parties that have
demonstrated capabilities to serve such households, with a
preference for not-for-profit entities and government agencies
that have existing relationships with or experience serving
low-income communities in the State.
Each gas utility shall develop and implement reporting
procedures that address and assist in determining the amount
of energy savings that can be applied to the low-income
procurement and expenditure requirements set forth in this
subsection (f). Each gas utility shall also track the types
and quantities or volumes of insulation and air sealing
materials, and their associated energy saving benefits,
installed in energy efficiency programs targeted at low-income

HB0804 Engrossed - 589 - LRB102 10881 SPS 16211 b
single-family and multifamily households.
Each gas utility shall implement a health and safety fund
of a minimum of 0.5% of the utility's entire portfolio funding
level for a given year, that shall be used for the purpose of
making grants for technical assistance, construction,
reconstruction, improvement, or repair of buildings to
facilitate their participation in the energy efficiency
programs targeted at low-income single-family and multifamily
households. These funds may also be used for the purpose of
making grants for technical assistance, construction,
reconstruction, improvement, or repair of the following
buildings to facilitate their participation in the energy
efficiency programs created by this Section: (1) buildings
that are owned or operated by registered 501(c)(3) public
charities; and (2) day care centers, day care homes, or group
day care homes, as defined by 89 Ill. Adm. Code Part 406, 407,
or 408, respectively.
The gas utilities shall participate in a low-income energy
efficiency accountability committee ("the committee"), which
will directly inform the design, implementation, and
evaluation of the low-income and public-housing energy
efficiency programs. The committee shall be composed of the
electric utilities subject to the requirements of Section
8-103B of this Act, the gas utilities subject to the
requirements of this Section, the utilities' low-income energy
efficiency implementation contractors, nonprofit

HB0804 Engrossed - 590 - LRB102 10881 SPS 16211 b
organizations, community action agencies, advocacy groups,
State and local governmental agencies, public-housing
organizations, and representatives of community-based
organizations, especially those living in or working with
environmental justice communities and BIPOC communities. The
committee shall be composed of a statewide leadership
committee and 2 geographically differentiated subcommittees:
one for stakeholders in northern Illinois and one for
stakeholders in central and southern Illinois. The
subcommittees shall meet together at least twice per year.
There shall be a statewide leadership committee led by and
composed of community-based organizations that are
representative of BIPOC and environmental justice communities
and that includes equitable representation from BIPOC
communities. The leadership committee shall be composed of an
equal number of representatives from the 2 subcommittees.
The subcommittees shall address specific programs and
issues, with the leadership committee convening targeted
workgroups as needed. The leadership committee may elect to
work with an independent facilitator to solicit and organize
feedback, recommendations and meeting participation from a
wide variety of community-based stakeholders. If a facilitator
is used, they shall be fair and responsive to the needs of all
stakeholders involved in the committee.
All committee meetings must be accessible, with rotating
locations if meetings are held in-person, virtual

HB0804 Engrossed - 591 - LRB102 10881 SPS 16211 b
participation options, and materials and agendas circulated
well in advance.
There shall also be opportunities for direct input by
committee members outside of committee meetings, such as via
individual meetings, surveys, emails and calls, to ensure
robust participation by stakeholders with limited capacity and
ability to attend committee meetings. Committee meetings shall
emphasize opportunities to bundle and coordinate delivery of
low-income energy efficiency with other programs that serve
low-income communities, such as Solar for All and bill payment
assistance programs. Meetings shall include educational
opportunities for stakeholders to learn more about these
additional offerings, and the committee shall assist in
figuring out the best methods for coordinated delivery and
implementation of offerings when serving low-income
communities. The committee shall directly and equitably
influence and inform utility low-income and public-housing
energy efficiency programs and priorities.
Participating utilities shall implement recommendations
from the committee whenever possible. Participating utilities
shall track and report how input from the committee has led to
new approaches and changes in their energy efficiency
portfolios. This reporting shall occur at committee meetings
and in quarterly energy efficiency reports to the Stakeholder
Advisory Group and Illinois Commerce Commission, and other
relevant reporting mechanisms. Participating utilities shall

HB0804 Engrossed - 592 - LRB102 10881 SPS 16211 b
also report on relevant equity data and metrics requested by
the committee, such as energy burden data, geographic, racial,
and other relevant demographic data on where programs are
being delivered and what populations programs are serving.
The Illinois Commerce Commission shall oversee and have
relevant staff participate in the committee. The committee
shall have a budget of 0.25% of each utility's entire
efficiency portfolio funding for a given year. The budget
shall be overseen by the Commission. The budget shall be used
to provide grants for community-based organizations serving on
the leadership committee, stipends for community-based
organizations participating in the committee, grants for
community-based organizations to do energy efficiency outreach
and education, and relevant meeting needs as determined by the
leadership committee. The education and outreach shall
include, but is not limited to, basic energy efficiency
education, information about low-income energy efficiency
programs, and information on the committee's purpose,
structure, and activities.
(g) At least 50% of the entire efficiency program
portfolio budget shall be spent on any combination of (1)
heating energy savings from integrated, residential or
nonresidential, new or existing whole building efficiency
programs; and (2) individual heating measures in residential
or nonresidential buildings, new or existing, that reduce the
amount of space heating needs through improvements to the

HB0804 Engrossed - 593 - LRB102 10881 SPS 16211 b
efficiency of building envelopes (including, but not limited
to, insulation measures, efficient windows and air leakage
reduction), improvements to systems for distributing heat
(including, but not limited to, duct leakage reduction, duct
insulation or pipe insulation) in buildings, improvements to
ventilation systems (including, but not limited to heat
recovery ventilation and demand control ventilation measures)
or improvements to controls of heating equipment (including,
but not limited to, advanced thermostats). Spending on
efficient furnaces, efficient boilers, or other efficient
heating equipment measures outside of or separate from
integrated whole building efficiency programs is permitted
within the efficiency program portfolio, but does not count
toward the minimum spending requirement in this subsection
(g). Spending on integrated whole building efficiency programs
targeted to low-income customers, as well as spending on
individual building envelope, heating distribution system,
ventilation system and heating system control measures
installed in low-income homes does count toward this
requirement. The portion of portfolio spending on program
marketing, training of installers, audits of buildings,
inspections of work performed, and other administrative and
technical expenses that are clearly tied to promotion and
delivery of integrated whole building efficiency programs or
installation of individual building envelope, heating
distribution system, ventilation system or heating system

HB0804 Engrossed - 594 - LRB102 10881 SPS 16211 b
control measures shall count toward this requirement. If this
minimum requirement is not met, any performance incentive
earned under paragraph (7) of subsection (j) should be reduced
by the percentage point level of shortfall in meeting this
requirement; if the utility is subject to a performance
penalty, then the magnitude of the penalty shall be increased
by the percentage point shortfall in meeting this requirement.
As used in this subsection (g), "integrated whole building
efficiency programs" means programs designed to optimize the
heating efficiency of buildings by comprehensively and
simultaneously addressing cost-effective energy-savings
opportunities associated with heating equipment, heating
distribution systems, heating system controls, ventilation
systems and building envelopes; such programs may be targeted
to existing buildings or to construction of new buildings.
(h) Notwithstanding any other provision of law to the
contrary, a utility providing approved energy efficiency
measures in the State shall be permitted to recover all
reasonable and prudently incurred costs of those measures from
all distribution system customers, provided that nothing in
this subsection (h) permits the double recovery of such costs
from customers.
(i) Beginning in 2022, each gas utility shall file an
energy efficiency plan with the Commission to meet the energy
efficiency standards for the next applicable multi-year period
beginning January 1 of the year following the filing,

HB0804 Engrossed - 595 - LRB102 10881 SPS 16211 b
according to the schedule set forth in paragraphs (1) through
(5) of this subsection (i). If a utility does not file such a
plan on or before the applicable filing deadline for the plan,
it shall face a penalty of $100,000 per day until the plan is
filed.
(1) No later March 1, 2022, each gas utility shall
file a 3-year energy efficiency plan commencing on January
1, 2023 that is designed to achieve the cumulative
persisting annual savings goals specified in paragraphs
(1) through (3) of subsection (d) of this Section through
implementation of energy efficiency measures; however, the
goals may be reduced if the plan's analysis and forecasts
of the utility's ability to acquire energy savings
demonstrate beyond a reasonable doubt that achievement of
such goals is not cost-effective. Annual increases in
cumulative persisting annual savings goals during the
applicable 3-year plan period shall not be reduced to
amounts that are less than the maximum amount of
cumulative persisting annual savings that is forecast to
be cost-effectively achievable during the 3-year plan
period. The Commission shall review any proposed goal
reduction as part of its review and approval of the
utility's proposed plan, taking into account the results
of the potential study required by subsection (j-5) of
this Section.
(2) No later than March 1, 2025, each gas utility

HB0804 Engrossed - 596 - LRB102 10881 SPS 16211 b
shall file a 4-year energy efficiency plan commencing on
January 1, 2026 that is designed to achieve the cumulative
persisting annual savings goals specified in paragraphs
(4) through (7) of subsection (d) of this Section through
implementation of energy efficiency measures; however, the
goals may be reduced if each of the following conditions
are met: (A) the plan's analysis and forecasts of the
utility's ability to acquire energy savings demonstrate
beyond a reasonable doubt that achievement of such goals
is not cost-effective; and (B) the amount of energy
savings achieved by the utility as determined by the
independent evaluator for the most recent year for which
savings have been evaluated preceding the plan filing was
less than the average annual amount of savings required to
achieve the goals for the applicable 4-year plan period.
Annual increases in cumulative persisting annual savings
goals during the applicable 4-year plan period shall not
be reduced to amounts that are less than the maximum
amount of cumulative persisting annual savings that is
forecast to be cost-effectively achievable during the
4-year plan period. The Commission shall review any
proposed goal reduction as part of its review and approval
of the utility's proposed plan, taking into account the
results of the potential study required by subsection
(j-5) of this Section.
(3) No later than March 1, 2029, each gas utility

HB0804 Engrossed - 597 - LRB102 10881 SPS 16211 b
shall file a 4-year energy efficiency plan commencing on
January 1, 2030 that is designed to achieve the cumulative
persisting annual savings goals specified in paragraphs
(8) through (11) of subsection (d) of this Section through
implementation of energy efficiency measures; however, the
goals may be reduced if each of the following conditions
are met: (A) the plan's analysis and forecasts of the
utility's ability to acquire energy savings demonstrate
beyond a reasonable doubt that achievement of such goals
is not cost-effective; and (B) the amount of energy
savings achieved by the utility as determined by the
independent evaluator for the most recent year for which
savings have been evaluated preceding the plan filing was
less than the average annual amount of savings required to
achieve the goals for the applicable 4-year plan period.
Annual increases in cumulative persisting annual savings
goals during the applicable 4-year plan period shall not
be reduced to amounts that are less than the maximum
amount of cumulative persisting annual savings that is
forecast to be cost-effectively achievable during the
4-year plan period. The Commission shall review any
proposed goal reduction as part of its review and approval
of the utility's proposed plan, taking into account the
results of the potential study required by subsection
(j-5) of this Section.
(4) No later than March 1, beginning in 2033 and each 4

HB0804 Engrossed - 598 - LRB102 10881 SPS 16211 b
years thereafter, each gas utility shall file a 4-year
energy efficiency plan commencing on January 1, beginning
in 2034 and each 4-year period thereafter, that is
designed to achieve the cumulative persisting annual
savings goals specified in paragraphs (12) through (15) of
subsection (d), as well as goals for subsequent years that
are established by the Illinois Commerce Commission
pursuant to direction of subsection (d) of this Section,
through implementation of energy efficiency measures;
however, the goals may be reduced if each of the following
conditions are met: (A) the plan's analysis and forecasts
of the utility's ability to acquire energy savings
demonstrate beyond a reasonable doubt that achievement of
such goals is not cost-effective; and (B) the amount of
energy savings achieved by the utility as determined by
the independent evaluator for the most recent year for
which savings have been evaluated preceding the plan
filing was less than the average annual amount of savings
required to achieve the goals for the applicable 4-year
plan period. Annual increases in cumulative persisting
annual savings goals during the applicable 4-year plan
period shall not be reduced to amounts that are less than
the maximum amount of cumulative persisting annual savings
that is forecast to be cost-effectively achievable during
the 4-year plan period. The Commission shall review any
proposed goal reduction as part of its review and approval

HB0804 Engrossed - 599 - LRB102 10881 SPS 16211 b
of the utility's proposed plan, taking into account the
results of the potential study required by subsection
(j-5) of this Section.
Each utility's plan shall set forth the utility's
proposals to meet the energy efficiency standards identified
in subsection (d). The Commission shall seek public comment on
the utility's plan and shall issue an order approving or
disapproving each plan within 6 months after its submission.
If the Commission disapproves a plan, the Commission shall,
within 30 days, describe in detail the reasons for the
disapproval and describe a path by which the utility may file a
revised draft of the plan to address the Commission's concerns
satisfactorily. If the utility does not refile with the
Commission within 60 days, the utility shall be subject to
penalties at a rate of $100,000 per day until the plan is
filed. This process shall continue, and penalties shall
accrue, until the utility has successfully filed a portfolio
of energy efficiency measures. Penalties shall be deposited
into the Energy Efficiency Trust Fund.
(j) In submitting proposed plans and funding levels under
subsection (i) of this Section to meet the savings goals
identified in subsection (d), the utility shall:
(1) Demonstrate that its proposed energy efficiency
measures will achieve the applicable requirements that are
identified in subsection (d) of this Section.
(2) Demonstrate consideration of program options for

HB0804 Engrossed - 600 - LRB102 10881 SPS 16211 b
(A) advancing new building codes, appliance standards, and
municipal regulations governing existing and new building
efficiency improvements and (B) supporting efforts to
improve compliance with new building codes, appliance
standards and municipal regulations, as potentially
cost-effective means of acquiring energy savings to count
toward savings goals.
(3) Demonstrate that its overall portfolio of
measures, not including low-income programs described in
subsection (f) of this Section, is cost-effective using
the total resource cost test, complies with subsection (i)
of this Section and represents a diverse cross-section of
opportunities for customers of all rate classes, to
participate in the programs. Individual measures need not
be cost-effective.
(3.5) Demonstrate that the utility's plan integrates
the delivery of energy efficiency programs with electric
efficiency programs and other efforts to address bill
payment issues, including, but not limited to, LIHEAP and
the Percent Income Payment Plan, to the extent such
integration is practical and has the potential to enhance
customer engagement, minimize market confusion, or reduce
administrative costs.
(4) Present a third-party energy efficiency
implementation program subject to the following
requirements:

HB0804 Engrossed - 601 - LRB102 10881 SPS 16211 b
(A) Beginning with the year commencing January 1,
2024, gas utilities shall fund third-party energy
efficiency programs in an amount that is no less than
10% of total efficiency portfolio budgets per year.
(B) For the multi-year plans commencing on January
1, 2023, the utility shall conduct a solicitation
process during 2023 for purposes of requesting
proposals from third-party vendors for those
third-party energy efficiency programs to be offered
during one or more years of the last 2 years of the
2023 to 2025 plan period. For the solicitation
process, the utility shall identify the sector,
technology, or a geographic area for which it is
seeking requests for proposals. The solicitation
process must be for programs that fill gaps in the
utility's program portfolio or target business
sectors, building types, geographies or other specific
parts of its customer base with initiatives that would
be more effective at reaching these customer segments
than the utilities' programs filed in its energy
efficiency plans.
(C) For multi-year plans commencing on January 1,
2026, January 1, 2030, and every 4 years thereafter,
the utility shall conduct a solicitation process
during 2025, 2029, and every 4 years thereafter,
respectively, for purposes of requesting proposals

HB0804 Engrossed - 602 - LRB102 10881 SPS 16211 b
from third-party vendors for those third-party energy
efficiency programs to be offered during one or more
years of the respective multi-year plan period; for
each solicitation process, the utility shall identify
the sector, technology, or geographic area for which
it is seeking requests for proposals; the solicitation
process must be for programs that fill gaps in the
utility's program portfolio or target business
sectors, building types, geographies or other specific
parts of its customer base with initiatives that would
be more effective at reaching these customer segments
than the utilities' programs filed in its energy
efficiency plans.
(D) The utility shall propose the bidder
qualifications, performance measurement process, and
contract structure, which must include a performance
payment mechanism and general terms and conditions;
the proposed qualifications, process, and structure
shall be subject to Commission approval.
(E) The utility shall retain an independent third
party to score the proposals received through the
solicitation process described in this paragraph (4),
rank them according to their cost per lifetime
kilowatt hours saved, and assemble the portfolio of
third-party programs.
The gas utility shall recover all costs associated

HB0804 Engrossed - 603 - LRB102 10881 SPS 16211 b
with Commission-approved, third-party administered
programs regardless of the success of those programs.
(5) Include a proposed or revised cost-recovery
mechanism, as provided for under subsection (h) of this
Section, to fund the proposed energy efficiency measures
and to ensure the recovery of the prudently and reasonably
incurred costs of Commission-approved programs.
(6) Provide for an annual independent evaluation of
the performance of the cost-effectiveness of the utility's
portfolio of measures, as well as a full review of the
multi-year plan results of the broader net program impacts
and, to the extent practical, for adjustment of the
measures on a going-forward basis as a result of the
evaluations. The resources dedicated to evaluation shall
not exceed 3% of portfolio resources in any given year.
(7) Each gas utility shall be eligible to earn a
shareholder incentive for effective implementation of its
efficiency programs. The incentive shall be tied to each
utility's annual energy efficiency spending and its
savings relative to its applicable annual total savings
requirement as defined in paragraph (8) of this subsection
(j). There shall be no incentive if the independent
evaluator determines the utility failed to achieve savings
equal to at least 85% of its applicable annual total
savings requirement. The utility shall earn an incentive
equal 0.5% of total annual efficiency spending in the year

HB0804 Engrossed - 604 - LRB102 10881 SPS 16211 b
being evaluated for every one percentage point above 85%
up to 100% of its applicable annual total savings
requirement that the utility achieved in that year, such
that the utility shall earn an incentive equal to 7.5% of
spending for meeting 100% of its applicable annual total
savings requirement. The utility shall earn an additional
0.3% of spending for every one percentage point above 100%
of its applicable annual total savings requirement
achieved, with a maximum incentive of 15% for achieving
125% of its applicable annual total savings requirement.
(7.5) In this Section, "applicable annual incremental
goal" means the difference between the cumulative
persisting annual savings goal for the calendar year that
is the subject of the independent evaluator's
determination and the cumulative persisting annual savings
goal for the immediately preceding calendar year, as such
goals are defined in subsection (d) of this Section. Under
subsection (d) of this Section, a utility must first
replace energy savings from measures that have expired and
would otherwise have to be replaced to meet the applicable
savings goals identified in subsection (d) of this Section
before any progress toward achievement of its applicable
annual incremental goal may be counted. Savings may expire
because measures installed in previous years have reached
the end of their lives, because measures installed in
previous years are producing lower savings in the current

HB0804 Engrossed - 605 - LRB102 10881 SPS 16211 b
year than in the previous year or for other reasons
identified by independent evaluators. Notwithstanding
anything else set forth in this Section, the difference
between the actual annual incremental savings achieved in
any given year, including the replacement of energy
savings that have expired, and the applicable annual
incremental goal shall not affect adjustments to the
return on equity for subsequent calendar years under this
subsection (j).
(8) In this Section, "applicable annual total savings
requirement" means the total amount of new annual savings
that the utility must achieve in any given year to achieve
the applicable annual incremental goal. This shall be
equal to the applicable annual incremental goal plus the
total new annual savings that are required to replace
savings that expired in or at the end of the previous year.
(9) The utility shall submit the energy-savings data
to the independent evaluator no later than 30 days after
the close of the plan year. The independent evaluator
shall determine the cumulative persisting annual savings
and the utility's performance relative to its applicable
annual total savings requirement for a given plan year no
later than 120 days after the close of the plan year. The
independent evaluator must also estimate the job impacts
and other macroeconomic impacts of the utility's
efficiency programs. The utility shall submit an

HB0804 Engrossed - 606 - LRB102 10881 SPS 16211 b
informational filing to the Commission no later than 160
days after the close of the plan year that attaches the
independent evaluator's final report identifying the
cumulative persisting annual savings for the year and
calculates, under paragraph (7) of this subsection (j), as
applicable, the magnitude of any shareholder incentive
that the utility has earned.
(9.5) The utility must demonstrate how it will ensure
that program implementation contractors and energy
efficiency installation vendors will meet multiple
workforce equity building criteria, including, but not
limited to:
(i) Ensuring that an amount of program portfolio
incentive funding proportional to the population of
BIPOC persons within the utility's territory, as
updated every 2 years, is administered or installed by
energy efficiency installation vendors who meet one of
the following criteria:
(aa) certified under Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act; or
(bb) certified by another municipal, state,
federal, or other certification for disadvantaged
businesses; or
(cc) submit an affidavit showing that the
vendor meets the eligibility criteria for a

HB0804 Engrossed - 607 - LRB102 10881 SPS 16211 b
certification program such as those in subdivision
(aa) or (bb); or
(dd) if the vendor is a nonprofit, meet any of
the criteria in subdivision (aa), (bb), or (cc) or
is controlled by a board of directors that
consists of 51% or greater BIPOC persons.
(ii) Ensuring that program implementation
contractors and energy efficiency installation vendors
pay employees working on energy efficiency programs at
or above the prevailing wage rate when such a wage rate
has been published by the Illinois Department of Labor
and pay employees working on energy efficiency
programs at or above the median wage rate for a similar
job description in the nearest metropolitan area when
there is no applicable published prevailing wage rate.
If necessary, utilities may conduct surveys to
establish the median wage rate for a given job
description. Utilities shall establish reporting
procedures for vendors that ensure compliance with
this subsection, but are structured to avoid, wherever
possible, placing an undue administrative burden on
vendors.
(iii) Ensuring that program implementation
contractor employees and energy efficiency
installation vendor employees are proportional to the
population of people of color, as defined in

HB0804 Engrossed - 608 - LRB102 10881 SPS 16211 b
subparagraphs (a) through (e) of paragraph (A)(1) of
Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act, within the
utility's territory, as updated every 2 years.
(iv) Ensuring that 30% or more of the energy
efficiency installation vendor employees working for
vendors reporting to each program implementation
contractor are graduates of or trainees in the Clean
Energy Workforce Training Hubs programs, Returning
Residents Clean Jobs Training programs, or similar
programs offering equivalent certifications.
(v) Ensuring that vendors who are very small
businesses of 5 or fewer full-time employees,
businesses that have completed or are participating in
the Expanding Clean Energy Entrepreneurship and
Contractor Incubator Network Program, and businesses
that have completed or are participating in the
Illinois Clean Energy Black, Indigenous, and People of
Color Primes Contractor Accelerator, receive a
substantial portion of program portfolio funding.
Utility plans to achieve this shall include efforts to
provide the necessary training and administrative
support needed for very small businesses to meet
utility-mandated training, certification, insurance,
and security-related contract requirements.
(9.6) Utilities shall collect data necessary to ensure

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compliance with paragraph (9.5) no less than quarterly and
shall communicate progress toward compliance with
paragraph (9.5) to program implementation contractors and
energy efficiency installation vendors no less than
quarterly. When it seems unlikely that the criteria in
paragraph (9.5) will be met, utilities shall work with
relevant vendors, providing education, training, and other
resources needed to ensure compliance and, where
necessary, adjusting or terminating work with vendors that
cannot assist with compliance.
(10) A utility required to implement efficiency
programs under this Section shall report annually to the
Illinois Commerce Commission and the General Assembly on
how hiring, contracting, job training, and other practices
related to its energy efficiency programs enhance the
diversity of vendors working on such programs. These
reports must include data on vendor and employee
diversity, including data on the implementation of
paragraphs (9.5) and (9.6). If the utility is not meeting
the requirements of paragraphs (9.5) and (9.6), the
utility shall submit a plan to adjust their activities so
that they meet the requirements of paragraphs (9.5) and
(9.6) within the following year.
(j-5) Energy efficiency potential study. An energy
efficiency potential study shall be commissioned and overseen
by the Illinois Commerce Commission. The potential study shall

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be a dual fuel study, addressing both gas and electric
efficiency potential, such that the requirements both in this
subsection (j-5) and in subsection (f-5) of Section 8-103B are
met in an integrated and cost-efficient manner. The potential
study shall be designed and conducted with input from a
Potential Study Stakeholder Committee established by the
Commission. This Committee shall be composed of
representatives from each electric utility, the Illinois
Attorney General's office, at least 2 environmental
stakeholders, at least one community-based organization, and
additional parties representing consumers. The Committee shall
provide input, at a minimum, into the scope of work for the
studies, the selection of vendors to perform the studies in
accordance with appropriate confidentiality and conflict of
interest provisions, and draft work products. The Committee
shall make best efforts to achieve consensus on the key
elements of the potential study, including:
(i) savings potential from efficiency measures and
program concepts that are known at the time of the study;
(ii) likely emergence of new technology or new program
concepts that could emerge, including proxies for new
technologies or program concepts that cannot be
specifically named, identified, or characterized at the
time of the study;
(iii) likely savings potential from efficiency
measures that may be unique to individual industries or

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individual facilities; and
(iv) the experience of other similar utilities, areas
and jurisdictions in maximizing achievement of
cost-effective savings.
When the committee is not able to reach consensus, the
Commission shall make the final decision.
(k) No more than 6% of energy efficiency and
demand-response program revenue may be allocated for research,
development, or pilot deployment of new equipment or measures.
(l) When practical, gas utilities shall incorporate
advanced metering infrastructure data into the planning,
implementation, and evaluation of energy efficiency measures
and programs, subject to the data privacy and confidentiality
protections of applicable law.
(m) The independent evaluator shall follow the guidelines
and use the savings set forth in Commission-approved energy
efficiency policy manuals and technical reference manuals, as
each may be updated from time to time. Until measure life
values for energy efficiency measures implemented for
low-income households under subsection (f) of this Section are
incorporated into such Commission-approved manuals, the
low-income measures shall have the same measure life values
that are established for same measures implemented in
households that are not low-income households.
(220 ILCS 5/8-512 new)

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Sec. 8-512. Renewable energy access plan.
(a) It is the policy of this State to promote
cost-effective transmission system development that ensures
reliability of the electric transmission system, lowers carbon
emissions, minimizes long-term costs for consumers, and
supports the electric policy goals of this State.
The General Assembly finds that:
(1) Transmission planning, primarily for reliability
purposes, but also for economic and public policy reasons
is conducted by regional transmission organizations in
which transmission-owning Illinois utilities and other
stakeholders are members.
(2) Order No. 1000 of the Federal Energy Regulatory
Commission requires regional transmission organizations to
plan for transmission system needs in light of state
public policies, and to accept input from states during
the transmission system planning processes.
(3) The State of Illinois does not currently have a
comprehensive power and environmental policy planning
process to identify transmission infrastructure needs that
can serve as a vital input into the regional and
inter-regional transmission organization planning
processes conducted under Order No. 1000 and other laws.
(4) This State is an electricity generation and power
transmission hub, and can leverage that position to invest
in infrastructure that enables new and existing Illinois

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generators to meet the public policy goals of the State of
Illinois and of interconnected states while
cost-effectively supporting tens of thousands of jobs in
the renewable energy sector in this State.
(5) The nation cannot readily access this State's
low-cost, clean electric power, and this State is hindered
in its ability to develop and support its low-carbon
economy and keep electricity prices low in Illinois and
interconnected states.
(6) Existing transmission infrastructure may constrain
the State's achievement of 100% renewable energy by 2050,
a carbon-free power sector by 2030, and an expanded use of
electric vehicles in a just and equitable way.
(7) Transmission system congestion within this State
and the regional transmission organizations serving this
State limits the ability of this State's existing and new
electric generation facilities that do not emit carbon
dioxide, including renewable energy resources and zero
emission facilities, to serve the public policy goals of
this State and other states, which constrains investment
in this State.
(8) Investment in infrastructure to support existing
and new electric generation facilities that do not emit
carbon dioxide, including renewable energy resources and
zero emission facilities, stimulates significant economic
development and job growth in this State, as well as

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creates environmental and public health benefits in this
State.
(9) Creating a forward-looking plan for this State's
electric transmission infrastructure, as opposed to
relying on case-by-case development and repeated marginal
upgrades, will achieve a lower-cost system for Illinois'
electricity customers. A forward-looking plan can also
help integrate and achieve a comprehensive set of
objectives and multiple state, regional, and national
policy goals.
(10) Alternatives to overhead electric transmission
lines can achieve cost-effective resolution of system
impacts, and warrant investigation of the circumstances
those alternatives should be considered and approved. The
alternatives are likely to be beneficial as investment in
electric transmission infrastructure moves forward.
(b) Consistent with the findings identified in subsection
(a), the Commission shall open an investigation to deliberate,
develop, and adopt a renewable energy access plan no later
than December 31, 2022. To assist and support the Commission
in the development of the plan, the Commission shall retain
the services of technical and policy experts with relevant
fields of expertise, solicit technical and policy analysis
from the public, and provide for a 120-day open public comment
period after publication of a draft report, which shall be
published no later than 90 days after the comment period ends.

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The plan shall, at a minimum, do the following:
(1) designate renewable energy access plan zones
throughout this State in areas in which renewable energy
resources and suitable land areas are sufficient to
develop generating capacity from renewable energy
technologies;
(2) develop a plan to achieve transmission capacity
necessary to deliver to electric customers in Illinois and
other states, in a manner that is most beneficial and
cost-effective to the customers, the electric output from
renewable energy technologies in the renewable energy
access plan zones;
(3) use this State's position as an electricity
generation and power transmission hub to create new
investment in this State's renewable energy resources;
(4) introduce and consider programs, policies, and
electric transmission projects that can be adopted within
this State and advocated for at regional transmission
organizations, that promote the cost-effective delivery of
power from renewable energy resources interconnected to
the bulk electric system to meet the renewable portfolio
standard targets under subsection (c) of Section 1-75 of
the Illinois Power Agency Act, and to meet current and
future public policy goals of other states, the region, or
the nation;
(5) introduce and consider proposals to improve

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regional transmission organizations' regional and
interregional system planning processes and an analysis of
how those proposals would improve reliability and
cost-effective delivery of electricity in Illinois and the
region;
(6) the Commission's specific findings, based on
technical and policy analysis, regarding locations of
renewable energy access plan zones, the transmission
system developments needed to cost-effectively achieve the
public policy goals identified herein, any recommended
policies to initiate within this State, or recommended
advocacy at regional transmission organizations; and
(7) the Commission's conclusions and proposed
recommendations based on its analysis.
(c) No later than December 31, 2025, and in each
odd-numbered year thereafter, the Commission shall open an
investigation to deliberate, develop, and adopt an updated
renewable energy access plan that, at a minimum, evaluates the
implementation and effectiveness of the renewable energy
access plan, recommends improvements to the renewable energy
access plan, and provides changes to transmission capacity
necessary to deliver electric output from the renewable energy
access plan zones.
(220 ILCS 5/9-220.3)
(Section scheduled to be repealed on December 31, 2023)

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Sec. 9-220.3. Natural gas surcharges authorized.
(a) Tariff.
(1) Pursuant to Section 9-201 of this Act, a natural
gas utility serving more than 700,000 customers may file a
tariff for a surcharge which adjusts rates and charges to
provide for recovery of costs associated with investments
in qualifying infrastructure plant, independent of any
other matters related to the utility's revenue
requirement.
(2) Within 30 days after the effective date of this
amendatory Act of the 98th General Assembly, the
Commission shall adopt emergency rules to implement the
provisions of this amendatory Act of the 98th General
Assembly. The utility may file with the Commission tariffs
implementing the provisions of this amendatory Act of the
98th General Assembly after the effective date of the
emergency rules authorized by subsection (i).
(3) The Commission shall issue an order approving, or
approving with modification to ensure compliance with this
Section, the tariff no later than 120 days after such
filing of the tariffs filed pursuant to this Section. The
utility shall have 7 days following the date of service of
the order to notify the Commission in writing whether it
will accept any modifications so identified in the order
or whether it has elected not to proceed with the tariff.
If the order includes no modifications or if the utility

HB0804 Engrossed - 618 - LRB102 10881 SPS 16211 b
notifies the Commission that it will accept such
modifications, the tariff shall take effect on the first
day of the calendar year in which the Commission issues
the order, subject to petitions for rehearing and
appellate procedures. After the tariff takes effect, the
utility may, upon 10 days' notice to the Commission, file
to withdraw the tariff at any time, and the Commission
shall approve such filing without suspension or hearing,
subject to a final reconciliation as provided in
subsection (e) of this Section.
(4) When a natural gas utility withdraws the surcharge
tariff, the utility shall not recover any additional
charges through the surcharge approved pursuant to this
Section, subject to the resolution of the final
reconciliation pursuant to subsection (e) of this Section.
The utility's qualifying infrastructure investment net of
accumulated depreciation may be transferred to the natural
gas utility's rate base in the utility's next general rate
case. The utility's delivery base rates in effect upon
withdrawal of the surcharge tariff shall not be adjusted
at the time the surcharge tariff is withdrawn.
(5) A natural gas utility that is subject to its
delivery base rates being fixed at their current rates
pursuant to a Commission order entered in Docket No.
11-0046, notwithstanding the effective date of its tariff
authorized pursuant to this Section, shall reflect in a

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tariff surcharge only those projects placed in service
after the fixed rate period of the merger agreement has
expired by its terms.
(b) For purposes of this Section, "qualifying
infrastructure plant" includes only plant additions placed in
service not reflected in the rate base used to establish the
utility's delivery base rates. "Costs associated with
investments in qualifying infrastructure plant" shall include
a return on qualifying infrastructure plant and recovery of
depreciation and amortization expense on qualifying
infrastructure plant, net of the depreciation included in the
utility's base rates on any plant retired in conjunction with
the installation of the qualifying infrastructure plant.
Collectively the "qualifying infrastructure plant" and "costs
associated with investments in qualifying infrastructure
plant" are referred to as the "qualifying infrastructure
investment" and that are related to one or more of the
following:
(1) the installation of facilities to retire and
replace underground natural gas facilities, including
facilities appurtenant to facilities constructed of those
materials such as meters, regulators, and services, and
that are constructed of cast iron, wrought iron, ductile
iron, unprotected coated steel, unprotected bare steel,
mechanically coupled steel, copper, Cellulose Acetate
Butyrate (CAB) plastic, pre-1973 DuPont Aldyl "A"

HB0804 Engrossed - 620 - LRB102 10881 SPS 16211 b
polyethylene, PVC, or other types of materials identified
by a State or federal governmental agency as being prone
to leakage;
(2) the relocation of meters from inside customers'
facilities to outside;
(3) the upgrading of the gas distribution system from
a low pressure to a medium pressure system, including
installation of high-pressure facilities to support the
upgrade;
(4) modernization investments by a combination
utility, as defined in subsection (b) of Section 16-108.5
of this Act, to install:
(A) advanced gas meters in connection with the
installation of advanced electric meters pursuant to
Sections 16-108.5 and 16-108.6 of this Act; and
(B) the communications hardware and software and
associated system software that creates a network
between advanced gas meters and utility business
systems and allows the collection and distribution of
gas-related information to customers and other parties
in addition to providing information to the utility
itself;
(5) replacing high-pressure transmission pipelines and
associated facilities identified as having a higher risk
of leakage or failure or installing or replacing
high-pressure transmission pipelines and associated

HB0804 Engrossed - 621 - LRB102 10881 SPS 16211 b
facilities to establish records and maximum allowable
operating pressures;
(6) replacing difficult to locate mains and service
pipes and associated facilities; and
(7) replacing or installing transmission and
distribution regulator stations, regulators, valves, and
associated facilities to establish over-pressure
protection.
With respect to the installation of the facilities
identified in paragraph (1) of subsection (b) of this Section,
the natural gas utility shall determine priorities for such
installation with consideration of projects either: (i)
integral to a general government public facilities improvement
program or (ii) ranked in the highest risk categories in the
utility's most recent Distribution Integrity Management Plan
where removal or replacement is the remedial measure.
(c) Qualifying infrastructure investment, defined in
subsection (b) of this Section, recoverable through a tariff
authorized by subsection (a) of this Section, shall not
include costs or expenses incurred in the ordinary course of
business for the ongoing or routine operations of the utility,
including, but not limited to:
(1) operating and maintenance costs; and
(2) costs of facilities that are revenue-producing,
which means facilities that are constructed or installed
for the purpose of serving new customers.

HB0804 Engrossed - 622 - LRB102 10881 SPS 16211 b
(d) Gas utility commitments. A natural gas utility that
has in effect a natural gas surcharge tariff pursuant to this
Section shall:
(1) recognize that the General Assembly identifies
improved public safety and reliability of natural gas
facilities as the cornerstone upon which this Section is
designed, and qualifying projects should be encouraged,
selected, and prioritized based on these factors; and
(2) provide information to the Commission as requested
to demonstrate that (i) the projects included in the
tariff are indeed qualifying projects and (ii) the
projects are selected and prioritized taking into account
improved public safety and reliability.
(3) The amount of qualifying infrastructure investment
eligible for recovery under the tariff in the applicable
calendar year is limited to the lesser of (i) the actual
qualifying infrastructure plant placed in service in the
applicable calendar year and (ii) the difference by which
total plant additions in the applicable calendar year
exceed the baseline amount, and subject to the limitation
in subsection (g) of this Section. A natural gas utility
can recover the costs of qualifying infrastructure
investments through an approved surcharge tariff from the
beginning of each calendar year subject to the
reconciliation initiated under paragraph (2) of subsection
(e) of this Section, during which the Commission may make

HB0804 Engrossed - 623 - LRB102 10881 SPS 16211 b
adjustments to ensure that the limits defined in this
paragraph are not exceeded. Further, if total plant
additions in a calendar year do not exceed the baseline
amount in the applicable calendar year, the Commission,
during the reconciliation initiated under paragraph (2) of
subsection (e) of this Section for the applicable calendar
year, shall adjust the amount of qualifying infrastructure
investment eligible for recovery under the tariff to zero.
(4) For purposes of this Section, "baseline amount"
means an amount equal to the utility's average of total
depreciation expense, as reported on page 336, column (b)
of the utility's ILCC Form 21, for the calendar years 2006
through 2010.
(e) Review of investment.
(1) The amount of qualifying infrastructure investment
shall be shown on an Information Sheet supplemental to the
surcharge tariff and filed with the Commission monthly or
some other time period at the option of the utility. The
Information Sheet shall be accompanied by data showing the
calculation of the qualifying infrastructure investment
adjustment. Unless otherwise ordered by the Commission,
each qualifying infrastructure investment adjustment shown
on an Information Sheet shall become effective pursuant to
the utility's approved tariffs.
(2) For each calendar year in which a surcharge tariff
is in effect, the natural gas utility shall file a

HB0804 Engrossed - 624 - LRB102 10881 SPS 16211 b
petition with the Commission to initiate hearings to
reconcile amounts billed under each surcharge authorized
pursuant to this Section with the actual prudently
incurred costs recoverable under this tariff in the
preceding year. The petition filed by the natural gas
utility shall include testimony and schedules that support
the accuracy and the prudence of the qualifying
infrastructure investment for the calendar year being
reconciled. The petition filed shall also include the
number of jobs attributable to the natural gas surcharge
tariff as required by rule. The review of the utility's
investment shall include identification and review of all
plant that was ranked within the highest risk categories
in that utility's most recent Distribution Integrity
Management Plan.
(f) The rate of return applied shall be the overall rate of
return authorized by the Commission in the utility's last gas
rate case.
(g) The cumulative amount of increases billed under the
surcharge, since the utility's most recent delivery service
rate order, shall not exceed an annual average 4% of the
utility's delivery base rate revenues, but shall not exceed
5.5% in any given year. On the effective date of new delivery
base rates, the surcharge shall be reduced to zero with
respect to qualifying infrastructure investment that is
transferred to the rate base used to establish the utility's

HB0804 Engrossed - 625 - LRB102 10881 SPS 16211 b
delivery base rates, provided that the utility may continue to
charge or refund any reconciliation adjustment determined
pursuant to subsection (e) of this Section.
(h) If a gas utility obtains a surcharge tariff under this
Section 9-220.3, then it and its affiliates are excused from
the rate case filing requirements contained in Sections
9-220(h) and 9-220(h-1). In the event a natural gas utility,
prior to the effective date of this amendatory Act of the 98th
General Assembly, made a rate case filing that is still
pending on the effective date of this amendatory Act of the
98th General Assembly, the natural gas utility may, at the
time it files its surcharge tariff with the Commission, also
file a notice with the Commission to withdraw its rate case
filing. Any affiliate of such natural gas utility may also
file to withdraw its rate case filing. Upon receipt of such
notice, the Commission shall dismiss the rate case filing with
prejudice and such tariffs and the record related thereto
shall not be the subject of any further hearing,
investigation, or proceeding of any kind related to rates for
gas delivery services. Notwithstanding the foregoing, a
natural gas utility shall not be permitted to withdraw a rate
case filing for which a proposed order recommending a rate
reduction is pending. A natural gas utility shall not be
permitted to withdraw the gas delivery services tariffs that
are the subject of Commission Docket Nos. 12-0511/12-0512
(cons.). None of the costs incurred for the withdrawn rate

HB0804 Engrossed - 626 - LRB102 10881 SPS 16211 b
case are recoverable from ratepayers.
(i) The Commission shall promulgate rules and regulations
to carry out the provisions of this Section under the
emergency rulemaking provisions set forth in Section 5-45 of
the Illinois Administrative Procedure Act, and such emergency
rules shall be effective no later than 30 days after the
effective date of this amendatory Act of the 98th General
Assembly.
(j) Utilities that have elected to recover qualifying
infrastructure investment costs pursuant to this Section shall
file annually their Distribution Integrity Management Plan
(DIMP) with the Commission no later than June 1 of each year
the utility has said tariff in effect. The DIMP shall include
the following information:
(1) Baseline Distribution System Data: Information
such as demand, system pressures and flows, and metering
infrastructure.
(2) Financial Data: historical and projected spending
on distribution system infrastructure.
(3) Scenario Analysis: Discussion of projected changes
in usage over time.
(4) Descriptions of all qualifying infrastructure
investment proposed for the coming year.
(k) Within 45 days after filing, the Commission shall,
with reasonable notice, open an investigation to consider
whether the Plan meets the objectives set forth in this

HB0804 Engrossed - 627 - LRB102 10881 SPS 16211 b
subsection and contains the information required by subsection
(j). The Commission shall issue a final order approving the
Plan, with any modifications the Commission deems reasonable
and appropriate to achieve the goals of this Section, within
270 days after the Plan filing. The investigation shall assess
whether the DIMP:
(1) ensures optimized use of utility infrastructure
assets and resources to minimize total system costs;
(2) enables greater customer engagement, empowerment,
and options for services;
(3) to the maximum extent possible, achieves and or
supports the achievement of greenhouse gas emissions
reductions as described by Section 9.10 of the
Environmental Protection Act; and
(4) supports existing Illinois policy goals promoting
energy efficiency.
The Commission process shall maximize the sharing of
information, ensure robust stakeholder participation, and
recognize the responsibility of the utility to ultimately
manage the grid in a safe, reliable manner.
(l) (j) This Section is repealed December 31, 2023.
(Source: P.A. 98-57, eff. 7-5-13.)
(220 ILCS 5/9-222.1B new)
Sec. 9-222.1B. Clean Energy Empowerment Zone exemption. A
renewable energy enterprise that is located within a Clean

HB0804 Engrossed - 628 - LRB102 10881 SPS 16211 b
Energy Empowerment Zone established under the Energy Community
Reinvestment Act shall be exempt from the additional charges
added to the renewable energy enterprise's utility bills as a
pass-on of municipal and State utility taxes under Sections
9-221 and 9-222 of this Act, to the extent such charges are
exempted by ordinance adopted in accordance with paragraph (e)
of Section 8-11-2 of the Illinois Municipal Code in the case of
municipal utility taxes, and to the extent such charges are
exempted by the percentage specified by the Department of
Commerce and Economic Opportunity in the case of State utility
taxes, provided such renewable energy enterprise meets the
following criteria:
(1) it (i) makes investments that cause the creation
of a minimum of 200 full-time equivalent jobs in Illinois;
(ii) makes investments of at least $175,000,000 that cause
the creation of a minimum of 150 full-time equivalent jobs
in Illinois; (iii) makes investments that cause the
retention of a minimum of 300 full-time equivalent jobs in
the manufacturing sector, as defined by the North American
Industry Classification System, in an area in Illinois in
which the unemployment rate is above 9% and makes an
application to the Department within 3 months after the
effective date of this amendatory Act of the 102nd General
Assembly and certifies relocation of the 300 full-time
equivalent jobs within 48 months after the application; or
(iv) makes investments that cause the retention of a

HB0804 Engrossed - 629 - LRB102 10881 SPS 16211 b
minimum of 1,000 full-time jobs in Illinois;
(2) it is located in a Clean Energy Empowerment Zone
established under the Energy Community Reinvestment Act;
and
(3) it is certified by the Department of Commerce and
Economic Opportunity as complying with the requirements
specified in clauses (1) and (2) of this Section.
The Department of Commerce and Economic Opportunity shall
determine the period during which such exemption from the
charges imposed under Section 9-222 is in effect which shall
not exceed 30 years or the term of the Clean Energy Empowerment
Zone, whichever period is shorter, except that the exemption
period for a renewable energy enterprise qualifying under item
(iii) of clause (1) of this Section shall not exceed 30 years.
The Department of Commerce and Economic Opportunity has
the power to adopt rules to carry out the provisions of this
Section including procedures for complying with the
requirements specified in clauses (1) and (2) of this Section
and procedures for applying for the exemptions authorized
under this Section; to define the amounts and types of
eligible investments that a renewable energy enterprise must
make in order to receive State utility tax exemptions pursuant
to Sections 9-222 and 9-222.1 of this Act; to approve such
utility tax exemptions for renewable energy enterprise whose
investments are not yet placed in service; and to require that
renewable energy enterprise granted tax exemptions repay the

HB0804 Engrossed - 630 - LRB102 10881 SPS 16211 b
exempted tax should the renewable energy enterprise fail to
comply with the terms and conditions of the certification.
However, no renewable energy enterprise shall be required, as
a condition for certification under clause (3) of this
Section, to attest that its decision to invest under clause
(1) of this Section and to locate under clause (2) of this
Section is predicated upon the availability of the exemptions
authorized by this Section.
A renewable energy enterprise shall be exempt, in whole or
in part, from the pass-on charges of municipal utility taxes
imposed under Section 9-221, only if it meets the criteria
specified in clauses (1) through (3) of this Section and the
municipality has adopted an ordinance authorizing the
exemption under paragraph (e) of Section 8-11-2 of the
Illinois Municipal Code. Upon certification of the renewable
energy enterprise by the Department of Commerce and Economic
Opportunity, the Department of Commerce and Economic
Opportunity shall notify the Department of Revenue of such
certification. The Department of Revenue shall notify the
public utilities of the exemption status of renewable energy
enterprises from the pass-on charges of State and municipal
utility taxes. Such exemption status shall be effective within
3 months after certification of the renewable energy
enterprise.
(220 ILCS 5/9-227) (from Ch. 111 2/3, par. 9-227)

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Sec. 9-227. It is the policy of this State to encourage
electric and natural gas public utilities to promote the
welfare of this State and their communities through donations
made from the utility's shareholder profits rather than by
using ratepayer funds. Such contributions shall not be
recoverable through the public utility's rates. It shall be
proper for the Commission to consider as an operating expense,
for the purpose of determining whether a rate or other charge
or classification is sufficient, donations made by a public
utility for the public welfare or for charitable scientific,
religious or educational purposes, provided that such
donations are reasonable in amount. In determining the
reasonableness of such donations, the Commission may not
establish, by rule, a presumption that any particular portion
of an otherwise reasonable amount may not be considered as an
operating expense. The Commission shall be prohibited from
disallowing by rule, as an operating expense, any portion of a
reasonable donation for public welfare or charitable purposes.
(Source: P.A. 85-122.)
(220 ILCS 5/10-104) (from Ch. 111 2/3, par. 10-104)
Sec. 10-104. Public hearings.
(a) As used in this Section, "major case" includes:
(1) rate cases;
(2) rulemakings;
(3) other proceedings with a significant effect on

HB0804 Engrossed - 632 - LRB102 10881 SPS 16211 b
rates;
(4) large infrastructure projects with significant
nonrate impacts on communities near their location;
(5) new programs;
(6) any planning dockets related to energy efficiency,
renewable energy, and interconnection infrastructure; and
(7) any other docketed or undocketed proceedings for
which the Commission feels that robust public engagement
is needed.
(b) When the outcome of a major case would have effects
statewide, or have any significant effects outside the
territory of the utility or utilities involved in the case,
the Commission shall hold at least 5 public hearings for the
purpose of receiving public comment on each such major case.
One of these hearings must be in the Chicago metropolitan
area. One of these hearings must be in Springfield. The
remaining 3 hearings must be outside of the Chicago
metropolitan area and Springfield. One of the hearings shall
be held within the county in which the subject matter of the
hearing is situated, if it is situated within one county. When
the outcome of a major case would have effects only within the
territory of one utility, the Commission shall hold at least 5
public hearings at a variety of geographic locations within
the utility's territory. The locations shall be chosen to give
a wide variety of stakeholders the best opportunity to
participate in the hearings. The Commission may combine public

HB0804 Engrossed - 633 - LRB102 10881 SPS 16211 b
hearings for multiple major cases into one event at a single
venue, where practicable and compliant with all other
requirements.
(c) The public hearings shall be held at times that make
them accessible to the public, including to residents who work
during the day. The public hearings shall be held at locations
easily accessible, whenever possible, by public
transportation. The public hearings shall be held at locations
with wheelchair access. Upon request, a sign language
interpreter or other equivalent assistance for the hearing
impaired shall be provided. Upon request, translation services
shall be provided. Translation services may include real-time
telephone-based or other real-time translation services. All
written materials distributed at public hearings by the
Commission or utilities must be available at the hearing in
Spanish and, upon request and reasonable notice, other
languages. Call-in options shall be provided.
(d) At least 3 commissioners shall attend each public
hearing in person.
(e) Public hearings under this Section are subject to the
Open Meetings Act.
(f) The Commission may collect a reasonable fee from the
affected utility to offset the cost of public hearings,
including the cost of staffing. Within 30 days after the
effective date of this amendatory Act of the 102nd General
Assembly, the Commission shall set the amount of the fee and

HB0804 Engrossed - 634 - LRB102 10881 SPS 16211 b
shall update the amount of the fee no less often than every 3
years thereafter. All fees charged and collected by the
Commission shall be paid promptly after the receipt of the
same, accompanied by a detailed statement thereof, into the
Public Utility Fund in the State treasury. All hearings before
the Commission or any commissioner or administrative law judge
shall be held within the county in which the subject matter of
the hearing is situated, or if the subject matter of the
hearing is situated in more than one county, then at a place or
places designated by the Commission, or agreed upon by the
parties in interest, within one or more such counties, or at
the place which in the judgment of the Commission shall be most
convenient to the parties to be heard.
(Source: P.A. 100-840, eff. 8-13-18.)
(220 ILCS 5/16-105.17 new)
Sec. 16-105.17. Multi-year integrated grid plan.
(a) Findings and Purpose. The General Assembly finds that
better aligning regulated utility operations, expenditures and
investments with public benefit goals including safety;
reliability; efficiency; affordability; equity; emissions
reductions; and expansion of clean distributed energy
resources, is critical to ensuring that Illinois residents and
businesses do not suffer economic and environmental harm from
the State's energy systems and to maximize the potential
benefits from utility expenditures. To that end, it is the

HB0804 Engrossed - 635 - LRB102 10881 SPS 16211 b
policy of the State of Illinois to promote inclusive,
comprehensive, transparent, cost-effective distribution
system planning that minimizes long-term costs for Illinois
customers and supports the achievement of state renewable
energy development and other clean energy, public health, and
environmental policy goals. Utility distribution system
expenditures, programs, investments and policies must be
evaluated in coordination with these goals. In particular, the
General Assembly finds that:
(1) Illinois' electricity distribution system must
cost-effectively integrate renewable energy resources,
including utility-scale renewable energy resources,
community renewable generation and distributed renewable
energy resources, support beneficial electrification
including electric vehicle use and adoption, promote
opportunities for third-party investment in
nontraditional, grid-related technologies and resources
such as batteries, solar photovoltaic panels and smart
thermostats, reduce energy usage generally and especially
during times of greatest reliance on fossil fuels, and
enhance customer engagement opportunities.
(2) Inclusive distribution system planning is an
essential tool for the Illinois Commerce Commission,
public utilities, and stakeholders to effectively
coordinate environmental, consumer, reliability and equity
goals at fair and reasonable costs, and for ensuring

HB0804 Engrossed - 636 - LRB102 10881 SPS 16211 b
transparent utility accountability for meeting those
goals.
(3) Any planning process should advance Illinois
energy policy goals while ensuring utility investments are
cost-effective. Such a process should maximize the sharing
of information, ensure robust stakeholder participation,
and recognize the responsibility of the utility to
ultimately manage the grid in a safe, reliable manner.
(4) Since the passage of the Energy Infrastructure
Modernization Act in 2011, Illinois consumers have
invested billions of dollars toward electric utility grid
modernization. In the absence of a transparent
distribution planning process, however, those investments
have not served customers' best interests, have failed to
promote the expansion of clean distributed energy
resources, and have failed to advance equity and
environmental justice.
(5) The traditional regulatory model rewards utilities
for increasing capital expenditures by basing allowed
revenues on the value of the rate base, resulting in an
incentive for ever-increasing capital investments. The
General Assembly is concerned that the existing regulatory
model does not align the interests of customers, the
State, and utilities because it does not encourage
utilities to systematically analyze and consider
nontraditional solutions to utility, customer and grid

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needs that may be more efficient and cost effective, and
less environmentally harmful than traditional solutions.
Nontraditional solutions include distributed energy
resources owned or implemented by customers and
independent third parties, controllable load, beneficial
electrification, or rate design that rewards efficient
energy use, for example.
(6) The General Assembly also finds that Illinois
utilities' current processes for planning their
distribution system are not reasonably accessible or
transparent to individuals and communities who pay for and
are affected by the utilities' distribution system assets,
and that more inclusive and accessible distribution system
planning processes would be in the interests of all
Illinois residents, but especially those residents
historically most negatively impacted by unsafe or
environmentally harmful energy infrastructure.
(7) The General Assembly finds it would be beneficial
to require utilities to demonstrate how their spending
promotes identified state energy goals, such as
integrating renewable energy; empowering customers;
supporting electric vehicles, beneficial electrification
and energy storage; achieving equity goals; and
maintaining reliability.
The General Assembly therefore directs the utilities to
implement distribution system planning in order to accelerate

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progress on Illinois clean energy and environmental goals and
hold electric utilities publicly accountable for their
performance.
(b) Definitions. As used in this Section:
"Commission" means the Illinois Commerce Commission.
"Demand response" means measures that decrease peak
electricity demand or shift demand from peak to off-peak
periods.
"Distributed energy resources" or "DER" means a wide range
of technologies that are located on the customer side of the
customer's electric meter and can provide value to the
distribution system, including, but not limited to,
distributed generation, energy storage, electric vehicles, and
demand response technologies.
"Environmental justice communities" means the definition
of that term based on existing methodologies and findings,
used and as may be updated by the Illinois Power Agency and its
Program Administrator in the Illinois Solar for All Program.
(c) Application. This Section applies to electric
utilities serving more than 500,000 retail customers in the
State.
(d) Objectives. The Multi-Year Integrated Grid Plan ("the
Plan") shall be designed to:
(1) ensure coordination of the State's renewable
energy goals, climate and environmental goals, utility
distribution system investments, and programs, policies

HB0804 Engrossed - 639 - LRB102 10881 SPS 16211 b
and investments described in this Section to maximize the
benefits of each while ensuring utility expenditures are
cost-effective;
(2) bring the benefits of grid modernization and clean
energy, including, but not limited to, deployment of
distributed energy resources, to ratepayers in
economically disadvantaged and environmental justice
communities throughout Illinois, with at least 40% of
these benefits being allocated to these ratepayers;
(3) enable greater customer engagement, empowerment,
and options for energy services;
(4) reduce grid congestion, minimize the time and
expense associated with interconnection, and increase the
capacity of the distribution grid to host increasing
levels of distributed energy resources, to facilitate
availability and development of distributed energy
resources, particularly in locations that enhance consumer
and environmental benefits;
(5) ensure opportunities for robust public
participation through open, transparent planning
processes;
(6) provide for the analysis of the cost-effectiveness
of proposed system investments, which takes into account
environmental costs and benefits;
(7) to the maximum extent possible, achieve or support
the achievement of Illinois environmental goals, including

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those described in Section 9.10 of the Environmental
Protection Act, Section 1-75 of the Illinois Power Agency
Act, and emissions reductions required to improve the
health, safety and prosperity of all Illinois residents;
(8) support existing Illinois policy goals promoting
distributed energy resources and investments in renewable
energy resources; and
(9) provide sufficient public information to the
Commission, stakeholders, and market participants in order
to enable nonemitting customer-owned or third-party
distributed energy resources, acting individually or in
aggregate, to seamlessly and easily connect to the grid;
provide grid benefits; support grid services; and achieve
environmental outcomes, without necessarily requiring
utility ownership or unreasonable control over those
resources, and enable those resources to act as
alternatives to utility capital investments.
(e) Plan Development Stakeholder Process. No later than
February 1, 2022, the Illinois Commerce Commission shall
initiate a series of no fewer than 6 workshops which shall
inform the filing requirements for, and contents of, the
Multi-Year Integrated Grid Plans to be filed by electric
utilities subject to this Section. The series of workshops
shall be 11 months in length, concluding no later than
December 31, 2022. The workshops shall be facilitated by an
independent third-party facilitator selected by Staff of the

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Illinois Commerce Commission and approved by the Executive
Director of the Illinois Commerce Commission.
(1) The workshops shall be designed to achieve the
following objectives:
(i) review utilities' past, current and planned
capital investments and all supporting data;
(ii) review utilities' historic and projected
load;
(iii) review how utilities plan to invest in their
distribution system in order to meet the system's
projected needs;
(iv) review locational data on reliability,
service quality, program participation and investment,
provided by the utilities;
(v) integrate input from diverse stakeholders,
including representatives from environmental justice
communities, geographically diverse communities,
low-income representatives, consumer representatives,
environmental representatives, organized labor
representatives, third-party technology providers, and
utilities;
(vi) consider proposals from utilities and
stakeholders on programs and policies necessary to
achieve the objectives in subsection (d) of this
Section; and
(vii) develop detailed filing requirements

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applicable to each component of the utilities'
Multi-Year Integrated Grid Plan filings under
paragraph (2) of subsection (f) of this Section.
(2) To the extent any of the information in
subparagraphs (i) through (iv) of paragraph (1) of this
subsection is designated as confidential because
disclosure of such threatens the security of critical
system infrastructure, that information shall be redacted
as necessary but made available to parties who agree in
writing to abide by confidentiality agreements as approved
by the Office of General Counsel of the Illinois Commerce
Commission. Information appropriately designated as
confidential shall only include that which is critical to
system security, and shall not include that information in
which the electric utility claims a proprietary business
interest.
(3) Workshops should be organized and facilitated in a
manner that encourages representation from diverse
stakeholders, ensuring equitable opportunities for
participation, without requiring formal intervention or
representation by an attorney. Workshops should be held
during both day and evening hours, in a variety of
locations around the State, and should allow remote
participation.
(4) Utilities shall provide system data, including
data described in subparagraphs (i) through (iv) of

HB0804 Engrossed - 643 - LRB102 10881 SPS 16211 b
paragraph (1) of subsection (e), at a time prior to the
start of workshops to allow interested stakeholders to
reasonably review data before attending workshops. To
facilitate public feedback, the administrator facilitating
the workshops shall, throughout the workshop process,
develop questions for stakeholder input on topics being
considered. This may include, but is not limited to:
design of the workshop process, locational data and
information provided by utilities, alignment of plans,
programs, investments and objectives, and other topics as
deemed appropriate by the Commission facilitation staff.
Stakeholder feedback shall not be limited to these
questions.
(5) Workshops shall not be considered settlement
negotiations, compromise negotiations, or offers to
compromise for the purposes of Illinois Rule of Evidence
408. All materials shared as a part of the workshop
process shall be made publicly available on a website made
available by the Commission.
(6) On conclusion of the workshops, the Commission
shall open a comment period that allows interested and
diverse stakeholders to submit comments and
recommendations regarding the utilities' Multi-Year
Integrated Grid Plan filings. Based on the workshop
process and stakeholder comments and recommendations
offered verbally or in writing during the workshops and in

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writing during the comment period following the workshops,
the independent third-party facilitator shall prepare a
report, to be submitted to the Commission no later than
February 1, 2022, describing the stakeholders,
discussions, proposals, and areas of consensus and
disagreement from the workshop process, and making
recommendations to the Commission regarding the utilities'
Multi-Year Integrated Grid Plan filings. Interested
stakeholders shall have an opportunity to provide comment
on the independent third-party facilitator Report.
(7) Based on discussions in the workshops, the Staff
Report, and stakeholder comments and recommendations made
during and following the workshop process, the Commission
shall issue Initiating Orders no later than April 1, 2022,
requiring the electric utilities subject to this Section
to file the first Multi-Year Integrated Grid Plan no later
than June 1, 2022. The Initiating Orders shall specify the
requirements applicable to the utilities' Multi-Year
Integrated Grid Plans, above and beyond any requirements
described in paragraph (2) of subsection (f) of this
Section, and shall:
(i) analyze and identify specific programs,
policies, and initiatives, among those that were
raised during the workshop process, that the utilities
must implement as a part of their Multi-Year
Integrated Grid Plans; and

HB0804 Engrossed - 645 - LRB102 10881 SPS 16211 b
(ii) specify types of analyses and calculations
the utilities shall perform, as well as scenarios they
must analyze and (where applicable) specific
assumptions they must use in the development of their
Multi-Year Integrated Grid Plans.
(f) Multi-Year Integrated Grid Plan.
(1) Design Objectives. Pursuant to this subsection (f)
of this Section 1and the Initiating Orders of the
Commission, to be filed no later than April 1, 2022, and
for each subsequent Plan thereafter, each electric utility
subject to this Section shall, no later than June 1, 2022,
submit its first Multi-Year Integrated Grid Plan. While
each Multi-Year Integrated Grid Plan will include a
long-term, ten-year planning horizon, the Initial Plan
shall be in effect from June 1, 2023 through May 31, 2026.
Each Plan shall:
(i) incorporate requirements established by the
Commission in its Initiating Order; and
(ii) Propose programs, policies and plans designed
to optimize achievement of the objectives set forth in
subsection (d) of this Section.
To the extent practicable and reasonable, all
programs, policies and initiatives proposed by the utility
in its plan should be informed by stakeholder input
received during the workshop process pursuant to
subsection (e) of this Section. Where specific stakeholder

HB0804 Engrossed - 646 - LRB102 10881 SPS 16211 b
input has not been incorporated in proposed programs,
policies, and plans, the electric utility shall provide an
explanation as to why that input was not incorporated.
(2) Plan Components. In order to ensure electric
utilities' ability to meet the goals and objectives set
forth in this Section, the Multi-Year Integrated Grid
Plans must include, at minimum, the following information:
(i) Baseline Distribution System Data. A detailed
description of the current operating conditions for
the distribution system, including a detailed
description, with supporting data, of: system
conditions, including asset age and useful life,
ratings, loadings, and other characteristics, as well
as:
(A) modeling software currently used and
planned software deployments;
(B) the distribution system annual loss
percentage for the prior year (average of 12
monthly loss percentages);
(C) the maximum hourly coincident load (kW)
for the distribution system as measured at the
interface between the transmission and
distribution system;
(D) total distribution substation capacity in
kVa;
(E) total distribution transformer capacity in

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kVa;
(F) total miles of overhead distribution wire;
(G) total miles of underground distribution
wire;
(H) current and expected reliability measures;
(I) detailed listing of all high-voltage and
low-voltage substations and circuits including, at
minimum, the following for each substation and
circuit: age, remaining useful life, capacity
rating, historical peak demand, historical
interval data, historic annual peak load growth,
forecast future annual peak load growth,
historical outages and voltage violations,
distribution system reliability events,
anticipated or modeled violations, existing and
planned visibility and measurement (feeder-level
and time) data, monitoring and control
capabilities, daytime minimum load, and other
characteristics as necessary to allow the
Commission and stakeholders to analyze system data
for the purposes of achieving the goals of this
Section;
(J) distributed energy resource deployment by
type, size, customer class, and geographic
dispersion; and
(K) total number and nameplate capacity of

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distributed energy resources that completed
interconnection to the system in each of the prior
5 years, including average time to process
interconnection applications for each type of
resource and interconnection level.
(ii) Distribution System Planning Process. A
detailed description of the electric utility's
distribution system planning process including, but
not limited to: any process required by a regional
transmission organization; forecasts, inputs and
assumptions of future total load and future peak
demand; planned infrastructure investments and
underlying assumptions regarding the necessity of such
investments; the electric utility's identification of
investments associated with the Commission's renewable
energy access plan, pursuant to Section 8-512 of this
Act; and other relevant details for the ten-year
planning horizon.
(iii) Hosting Capacity and Interconnection
Analysis. A hosting capacity analysis which includes a
detailed and current analysis of how much capacity is
available on each substation, circuit and node for
integrating renewable and distributed energy resources
as allowed by thermal ratings, protection system
limits, power quality standards, and safety standards.
This section must include: circuit-level maps and

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downloadable data sets for public use; an assessment
of how anticipated investments (for as far into the
future as the utility has planned investments) will
impact the analysis; and a narrative discussion of how
the hosting capacity analysis advances customer-sited
distributed energy resources, including in particular
electric vehicles, electric storage systems and
photovoltaic resources.
(iv) Scenario Analysis and Load Forecasting.
Detailed load forecasts for the following 10 years at
the substation and circuit level, using dynamic load
forecasting (forecasting using multiple scenarios and
probabilistic planning) and accounting for the impacts
of anticipated energy efficiency programs, demand
response programs, distributed energy resources,
electric vehicle adoption, and other known or
anticipated variables. This section shall also include
a detailed description of the electric utility's
anticipated capacity, thermal, voltage or other grid
constraints for the following 3-year period, including
modifications or upgrades to the system required to
accommodate anticipated future load and distributed
energy resource adoption. This section shall also
include a discussion of the development of base-case,
medium and high scenarios of distributed energy
resource deployment, reflecting a reasonable mix of

HB0804 Engrossed - 650 - LRB102 10881 SPS 16211 b
individual distributed energy resource adoption and
aggregated or bundled distributed energy resource
service types, and detailed information on the
methodologies used to develop those scenarios.
(v) Grid Value Analysis. An evaluation of the
short- and long-run benefits and costs of distributed
energy resources located on the distribution system,
including, but not limited to, the locational,
temporal, and performance-based benefits and costs of
distributed energy resources. This evaluation shall be
based on the reductions or increases in local
generation capacity needs, avoided or increased
investments in distribution infrastructure, avoided or
increased line-losses, voltage support and ancillary
services, safety benefits, reliability benefits,
resilience benefits, and any other savings, benefits
or value the distributed energy resources individually
or in aggregate provide to the distribution system or
costs to ratepayers of the electric utility. The
utility shall use the results of this evaluation to
inform its analysis of Solution Sourcing
Opportunities, including nonwires alternatives, under
subparagraph (H) of paragraph (2) subsection (f) of
this Section. The Commission may use the data produced
through this evaluation to, among other use-cases,
establish tariffs and compensation for distributed

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energy resources interconnecting to the utility's
distribution system, including rebates provided by the
electric utility pursuant to Section 16-107.6 of this
Act.
(vi) Utility System Investment Plan. A detailed
description of historic distribution system capital
investments for the preceding 5 years and planned
capital investments for the following 10 years, as
well as load forecasts and all other data supporting
those investments. This section shall include
projected costs, scope of work, prioritization of
work, sequencing of investments, and explanations of
how planned investments will meet the objectives
described in subsection (d).
(vii) Utility Operations Plan. A detailed
description of historic distribution system operations
and maintenance expenditures for the preceding 5 years
and of planned operations and maintenance expenditures
for the following 10 years, as well as the data,
reasoning and explanation supporting planned
expenditures. This section shall also include a
description of total costs spent on distributed energy
resource interconnection review and commissioning
(including application review, responding to
inquiries, metering, testing and other costs), as well
as interconnection fees and charges to customers and

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installers of distributed energy resources, including
(application, metering and make-ready fees), broken
down by type of generation and category or level of
interconnection review, over each of the preceding 5
years.
(viii) Solution Sourcing Opportunities.
Identification of potential cost-effective solutions
from nontraditional and third-party owned investments
that could meet anticipated grid needs, including, but
not limited to: distributed energy resource
procurements, tariffs or contracts, programmatic
solutions, rate design options, technologies or
programs that facilitate load flexibility, nonwires
alternatives, and other solutions that are intended to
meet the objectives described at subsection (d). It is
the policy of this State that cost-effective
third-party or customer-owned distributed energy
resources shall be prioritized because those resources
create robust competition and customer choice.
(ix) Interoperability Plan. A detailed description
of the utility's interoperability plan, which must
describe the manner in which the electric utility's
current and planned distribution system investments
will work together and exchange information and data,
the extent to which the utility is implementing open
standards and interfaces with third-party distributed

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energy resource owners and aggregators, and the
utility's plan for interoperability testing and
certification.
(x) Flexibility Analysis. A detailed analysis of
current and projected flexible resources, including
resource type, size (in MW and MWh), location and
environmental impact, as well as anticipated needs
that can be met using flexible resources (including,
but not limited to, peak load reduction, managing ramp
needs, storing excess generation, and avoiding
unnecessary transmission expenditures).
(xi) Equity Requirements. A description of,
exclusive of low-income rate relief programs and other
income-qualified programs, how the utility is ensuring
that at least 40% of benefits from programs, policies,
and initiatives proposed in their Multi-Year
Integrated Grid Plan will be directed to ratepayers in
low-income and environmental justice communities. This
should include locational reporting, at the
census-tract level, on distribution system
investments, program participation, and reliability
and service quality data.
(3) To the extent any information in utilities'
Multi-Year Integrated Grid Plans is designated as
confidential because disclosure of such threatens the
security of critical system infrastructure, that

HB0804 Engrossed - 654 - LRB102 10881 SPS 16211 b
information shall be redacted as necessary but made
available to parties who agree in writing to abide by
confidentiality requirements as approved by the Office of
General Counsel of the Illinois Commerce Commission.
Information appropriately designated as confidential shall
only include that which is critical to system security,
and shall not include that information in which the
electric utility claims only a proprietary business
interest.
(4) Comprehensive Consideration of Related Plans,
Tariffs, Programs and Policies. It is the policy of this
State that holistic consideration of all related
investments, planning processes, tariffs, rate design
options, programs, and other utility policies and plans
shall be required. To that end, the Commission shall
consider, comprehensively, the impact of all related
plans, tariffs, programs and policies on the Plan and on
each other, including:
(i) time-of-use pricing program, pursuant to
Section 16-107.7 of this Act, hourly pricing program,
pursuant to Section 16-107 of this Act, and any other
time-variant or dynamic pricing program;
(ii) distributed generation rebate, pursuant to
Section 16-107.6 of this Act;
(iii) net electricity metering, pursuant to
Section 16-107.5 of this Act;

HB0804 Engrossed - 655 - LRB102 10881 SPS 16211 b
(iv) energy efficiency programs, pursuant to
Section 8-103B of this Act;
(v) Electric Vehicle Access for All programs,
pursuant to Section 30 of the Electric Vehicle Act;
(vi) beneficial electrification programs, pursuant to Section
16-107.8 of this Act; (vii) Clean Energy Empowerment Zone
Pilot Projects, pursuant to Section 16-108.9 of this Act;
(viii) Equitable Energy Upgrade Program, pursuant
to Section 16-111.10 of this Act; and
(ix) other plans, programs and policies that are
relevant to distribution grid investments, costs
planning, etc.
The Plan shall comprehensively detail the relationship
between these plans, tariffs, and programs and the Plan
and to the electric utility's achievement of the
objectives in subsection (d). The Plan shall be designed
to coordinate each of these plans, programs and tariffs
with the electric utility's long-term distribution system
investment planning in order to maximize the benefits of
each.
(5) Hearing Procedure. The Initiating Order for the
Initial Multi-Year Integrated Grid Plan, as well as each
electric utility's subsequent Integrated Grid Plans under
subsection (g), shall begin a contested proceeding as
described in subsection d of Section 10-101.1 of this Act.
(i) In evaluating a utility's Plan, the Commission

HB0804 Engrossed - 656 - LRB102 10881 SPS 16211 b
shall consider, at minimum, whether the Plan:
(A) meets the objectives of this Section;
(B) includes the components in paragraph (2)
of subsection (f) of this Section;
(C) incorporates input from interested
stakeholders, including parties and people who
offer public comment;
(D) considers nontraditional and
nonutility-owned investment alternatives that can
meet grid needs and provide additional benefits
(including consumer, economic and environmental
benefits) beyond comparable, traditional
utility-planned capital investments;
(E) equitably benefits environmental justice
communities; and
(F) maximizes consumer, environmental,
economic and community benefits.
(ii) The Commission, after notice and hearing,
shall modify each electric utility's Plan as necessary
to comply with the objectives of this Section. The
Commission may approve, or modify and approve, a Plan
only if it finds that the Plan is reasonable, complies
with the objectives and requirements of this Section,
and reasonably incorporates input from parties. The
Commission's approval of any Plan does not constitute
approval, or any adjudication of the prudence or

HB0804 Engrossed - 657 - LRB102 10881 SPS 16211 b
reasonableness, of any expenditures associated with
the Plan. The Commission may reject each electric
utility's Plan if it finds that the Plan does not
comply with the objectives and requirements of this
Section. Where the Commission enters an Order
rejecting a Plan, the utility must refile a Plan
within 3 months after that Order, and until the
Commission approves a Plan, the utility's existing
Plan will remain in effect.
(iii) For all Integrated Grid Plan filings, the
Commission shall enter an order no later than 9 months
after the date of filing.
(iv) Each electric utility shall file its proposed
Initial Multi-Year Integrated Grid Plan no later than
June 1, 2022. Prior to that date and following the
Initiating Order, the Commission shall initiate a case
management conference and shall take any appropriate
steps to begin meaningful consideration of issues,
including enabling interested parties to begin
conducting discovery.
(6) Implementation Plans.
(i) As part of its order approving a utility's
Multi-Year Integrated Grid Plan, including any
modifications required, the Commission shall create a
subsequent implementation plan docket, or multiple
implementation plan dockets, if the Commission

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determines that multiple dockets would be preferable,
to consider the utility's detailed plans for:
(A) acquiring the level of demand response
resources specified in its approved Multi-Year
Integrated Grid Plan;
(B) acquiring the level of load flexibility or
energy storage resources specified in its approved
Multi-Year Integrated Grid Plan;
(C) achieving the level of transportation,
building and industry electrification specified in
its approved Multi-Year Integrated Grid Plan, or
implementing optimized charging or other
beneficial electrification programs;
(D) developing any of the plans, tariffs,
programs or policies required by paragraph (4) of
subsection (e) and additionally required by the
Commission in its Order regarding the Multi-Year
Integrated Grid Plan; and
(E) developing the Hosting Capacity and
Interconnection Analysis required by paragraph (2)
of subsection (f);
(F) developing a process to screen, analyze
and procure nonwires alternatives; and
(G) addressing any other topic or resource
area covered by the utility's Multi-Year
Integrated Grid Plan for which the Commission

HB0804 Engrossed - 659 - LRB102 10881 SPS 16211 b
considers it important and necessary to receive
and approve a greater level of detail regarding
the utility's plans.
(ii) Each implementation plan shall include a
detailed explanation of:
(A) the projected costs (investments and
expenses) and benefits of each plan or program to
be considered in the implementation plan,
including related financial incentives, marketing,
and administration;
(B) categories and sub-categories of resources
or services to be acquired to achieve the
objectives in the Multi-Year Integrated Grid Plan
(for example, the implementation plan for demand
response shall identify the different types of
demand response resources that will collectively
be pursued to achieve the total level of demand
response capability approved in the Plan);
(C) the marketing, customer recruitment and
engagement, financial incentive, procurement
approach and other important elements of the plan
or program, including efforts to cultivate
qualifying customers in low-income and
environmental justice communities;
(D) an explanation of how the proposed plans
or programs will be able to achieve the objective

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in the Multi-Year Integrated Grid Plan;
(E) an analysis of how, exclusive of
low-income rate relief and other income-qualified
programs, the implementation plan will contribute
to the Multi-year Integrated Grid Plan's
requirement that at least 40% of benefits from
programs, policies, and initiatives will be
directed to low-income and environmental justice
communities;
(F) a discussion of any risk in the utility's
ability to acquire the planned levels of resource
acquisition within the approved budget, as well as
contingency plans for addressing such risks; and
(G) a plan for periodic (but at least
quarterly) engagement with stakeholders on the
rollout and implementation of the implementation
plans in order to inform them of plans and
progress, as well as to solicit input on
opportunities for improving plans and
implementation or on ways to modify plans as
needed.
(iii) The implementation plan dockets shall be
contested proceedings, with opportunities for
discovery and filing of testimony by interested
stakeholders. Each utility shall file its
implementation plans within 90 days after approval,

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with any modifications, of its Multi-Year Integrated
Grid Plan.
(g) Subsequent Multi-Year Integrated Grid Plans. No later
than June 1, 2025 and every 4 years thereafter, each electric
utility subject to this Section shall file a new Multi-Year
Integrated Grid Plan for the subsequent 4 delivery years after
the completion of the then-effective Plan. Each Plan shall
meet the requirements described in subsection (f), and shall
be preceded by a workshop process which meets the same
requirements described in subsection (e). If appropriate, the
Commission may require additional implementation dockets to
follow Subsequent Multi-Year Integrated Grid Plan filings.
(220 ILCS 5/16-107)
Sec. 16-107. Real-time pricing.
(a) Each electric utility shall file, on or before May 1,
1998, a tariff or tariffs which allow nonresidential retail
customers in the electric utility's service area to elect
real-time pricing beginning October 1, 1998.
(b) Each electric utility shall file, on or before May 1,
2000, a tariff or tariffs which allow residential retail
customers in the electric utility's service area to elect
real-time pricing beginning October 1, 2000.
(b-5) Each electric utility shall file a tariff or tariffs
allowing residential retail customers in the electric
utility's service area to elect real-time pricing beginning

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January 2, 2007. The Commission may, after notice and hearing,
approve the tariff or tariffs. A tariff or tariffs approved
pursuant to this subsection (b-5) shall, at a minimum,
describe (i) the methodology for determining the market price
of energy to be reflected in the real-time rate and (ii) the
manner in which customers who elect real-time pricing will be
provided with ready access to hourly market prices, including,
but not limited to, day-ahead hourly energy prices. A customer
who elects real-time pricing under a tariff approved under
this subsection (b-5) and thereafter terminates the election
shall not return to taking service under the tariff for a
period of 12 months following the date on which the customer
terminated real-time pricing. However, this limitation shall
cease to apply on such date that the provision of electric
power and energy is declared competitive under Section 16-113
of this Act for the customer group or groups to which this
subsection (b-5) applies.
A proceeding under this subsection (b-5) may not exceed
120 days in length.
(b-10) Each electric utility providing real-time pricing
pursuant to subsection (b-5) shall install a meter capable of
recording hourly interval energy use at the service location
of each customer that elects real-time pricing pursuant to
this subsection.
(b-15) If the Commission issues an order pursuant to
subsection (b-5), the affected electric utility shall contract

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with an entity not affiliated with the electric utility to
serve as a program administrator to develop and implement a
program to provide consumer outreach, enrollment, and
education concerning real-time pricing and to establish and
administer an information system and technical and other
customer assistance that is necessary to enable customers to
manage electricity use. The program administrator: (i) shall
be selected and compensated by the electric utility, subject
to Commission approval; (ii) shall have demonstrated technical
and managerial competence in the development and
administration of demand management programs; and (iii) may
develop and implement risk management, energy efficiency, and
other services related to energy use management for which the
program administrator shall be compensated by participants in
the program receiving such services. The electric utility
shall provide the program administrator with all information
and assistance necessary to perform the program
administrator's duties, including, but not limited to,
customer, account, and energy use data. The electric utility
shall permit the program administrator to include inserts in
residential customer bills 2 times per year to assist with
customer outreach and enrollment.
The program administrator shall submit an annual report to
the electric utility no later than April 1 of each year
describing the operation and results of the program, including
information concerning the number and types of customers using

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real-time pricing, changes in customers' energy use patterns,
an assessment of the value of the program to both participants
and non-participants, and recommendations concerning
modification of the program and the tariff or tariffs filed
under subsection (b-5). This report shall be filed by the
electric utility with the Commission within 30 days of receipt
and shall be available to the public on the Commission's web
site.
(b-20) The Commission shall monitor the performance of
programs established pursuant to subsection (b-15) and shall
order the termination or modification of a program if it
determines that the program is not, after a reasonable period
of time for development not to exceed 4 years, resulting in net
benefits to the residential customers of the electric utility.
(b-25) An electric utility shall be entitled to recover
reasonable costs incurred in complying with this Section,
provided that recovery of the costs is fairly apportioned
among its residential customers as provided in this subsection
(b-25). The electric utility may apportion costs on the
residential customers who elect real-time pricing, but may
also impose some of the costs of real-time pricing on
customers who do not elect real-time pricing.
(c) The electric utility's tariff or tariffs filed
pursuant to this Section shall be subject to Article IX.
(d) This Section does not apply to any electric utility
providing service to 100,000 or fewer customers.

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(e) Eligible customers shall include, but are not limited
to, customers participating in net electricity metering under
the terms of Section 16-107.5 of this Act.
(Source: P.A. 99-906, eff. 6-1-17.)
(220 ILCS 5/16-107.5)
Sec. 16-107.5. Net electricity metering.
(a) The General Assembly Legislature finds and declares
that a program to provide net electricity metering, as defined
in this Section, for eligible customers can encourage private
investment in renewable energy resources, stimulate economic
growth, enhance the continued diversification of Illinois'
energy resource mix, and protect the Illinois environment. The
General Assembly further finds and declares that ensuring a
smooth, predictable transition from full net metering of the
retail electricity rate to the distributed generation rebate
described in Section 16-107.6 of this Act is important to
achieve these legislative goals. In implementing the
investigation discussed in subsection (e) of Section 16-107.6
of this Act and the transition discussed in subsection (n) of
this Section 16-107.5, the Commission shall ensure that
distributed generation customers are fairly compensated for
the benefits and services that customer-sited distributed
generation provides and that the distributed generation market
in Illinois continues to experience stable growth for both
small and large customers.

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(b) As used in this Section: ,
(i) "Community community renewable generation project" has
shall have the meaning set forth in Section 1-10 of the
Illinois Power Agency Act. ;
"Delivery service provider" means a public utility as
defined in subsection (a) of Section 3-105 of this Act.
"Electricity provider" means an electric utility or
alternative retail electric supplier providing energy supply.
(ii) "Eligible eligible customer" means a retail customer
or retail customers with that owns or operates a solar, wind,
or other eligible renewable electrical generating facility
with a rated capacity of not more than 2,000 kilowatts that is
located on the customer's or customers' side of the billing
meter premises and is intended primarily to offset the
customer's or customers' own current or future electrical
requirements when accounting for shading, orientation, and
other siting factors that can reasonably be expected to alter
an eligible renewable electrical generating facility's
generation output. An eligible customer does not need to own
the solar, wind, or other eligible renewable electrical
generating facility. Subscribers to community renewable
generation projects shall also be considered eligible
customers for the purpose of this Section, including
subscribers to community renewable generation projects that
are larger than 2,000 kilowatts. ; (iii) "electricity provider"
means an electric utility or alternative retail electric

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supplier;
(iv) "Eligible eligible renewable electrical generating
facility" means a generator, which may include the co-location
of an energy storage system, that is interconnected under
rules adopted by the Commission and is powered by solar
electric energy, wind, dedicated crops grown for electricity
generation, agricultural residues, untreated and unadulterated
wood waste, landscape trimmings, livestock manure, anaerobic
digestion of livestock or food processing waste, fuel cells or
microturbines powered by renewable fuels, or hydroelectric
energy. ;
"Energy storage system" means commercially available
technology that is capable of absorbing energy and storing it
for a period of time for use at a later time, including, but
not limited to, electrochemical, thermal, and
electromechanical technologies, and may be interconnected on
the customer's side of the billing meter or interconnected via
its own meter.
"Future electrical requirements" means the reasonable
anticipation of load growth, such as from the addition of an
electric vehicle, the addition of electric space heating or
water heating, modeled electrical requirements upon occupation
of a new or vacant property, as well as other reasonable
expectations of future electrical use.
(v) "Net net electricity metering" (or "net metering")
means the measurement, during the billing period applicable to

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an eligible customer, of the net amount of electricity
supplied by an electricity provider to the customer customer's
premises or provided to the electricity provider by the
customer or subscriber. ;
"Statewide net metering penetration" means the sum of
nameplate capacity of all net metering facilities in the
State, excluding community renewable generation projects,
divided by the sum of peak demand of electricity delivered by
each delivery service provider (with the peak identified
independently for each provider) in the State during the
previous year.
(vi) "Subscriber subscriber" has shall have the meaning as
set forth in Section 1-10 of the Illinois Power Agency Act. ;
and
(vii) "Subscription subscription" has shall have the
meaning set forth in Section 1-10 of the Illinois Power Agency
Act.
(c) A net metering facility shall be equipped with
metering equipment that can measure the flow of electricity in
both directions at the same rate.
(1) For eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113
of this Act as of July 1, 2011 and whose electric delivery
service is provided and measured on a kilowatt-hour basis
and electric supply service is not provided based on
hourly pricing, this shall typically be accomplished

HB0804 Engrossed - 669 - LRB102 10881 SPS 16211 b
through use of a single, bi-directional meter. If the
eligible customer's existing electric revenue meter does
not meet this requirement, the electricity provider shall
arrange for the local electric utility or a meter service
provider to install and maintain a new revenue meter at
the electricity provider's expense, which may be the smart
meter described by subsection (b) of Section 16-108.5 of
this Act.
(2) For eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113
of this Act as of July 1, 2011 and whose electric delivery
service is provided and measured on a kilowatt demand
basis and electric supply service is not provided based on
hourly pricing, this shall typically be accomplished
through use of a dual channel meter capable of measuring
the flow of electricity both into and out of the
customer's facility at the same rate and ratio. If such
customer's existing electric revenue meter does not meet
this requirement, then the electricity provider shall
arrange for the local electric utility or a meter service
provider to install and maintain a new revenue meter at
the electricity provider's expense, which may be the smart
meter described by subsection (b) of Section 16-108.5 of
this Act.
(3) For all other eligible customers, until such time
as the local electric utility installs a smart meter, as

HB0804 Engrossed - 670 - LRB102 10881 SPS 16211 b
described by subsection (b) of Section 16-108.5 of this
Act, the electricity provider may arrange for the local
electric utility or a meter service provider to install
and maintain metering equipment capable of measuring the
flow of electricity both into and out of the customer's
facility at the same rate and ratio, typically through the
use of a dual channel meter. If the eligible customer's
existing electric revenue meter does not meet this
requirement, then the costs of installing such equipment
shall be paid for by the customer.
(d) An electricity provider shall measure and charge or
credit for the net electricity supplied to eligible customers
or provided by eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113 of
this Act as of July 1, 2011 and whose electric delivery service
is provided and measured on a kilowatt-hour basis and electric
supply service is not provided based on hourly pricing in the
following manner:
(1) If the amount of electricity used by the customer
during the billing period exceeds the amount of
electricity produced by the customer, the electricity
provider shall charge the customer for the net electricity
supplied to and used by the customer as provided in
subsection (e-5) of this Section.
(2) If the amount of electricity produced by a
customer during the billing period exceeds the amount of

HB0804 Engrossed - 671 - LRB102 10881 SPS 16211 b
electricity used by the customer during that billing
period, the electricity provider supplying that customer
shall apply a 1:1 kilowatt-hour credit to a subsequent
bill for service to the customer for the net electricity
supplied to the electricity provider. The electricity
provider shall continue to carry over any excess
kilowatt-hour credits earned and apply those credits to
subsequent billing periods to offset any
customer-generator consumption in those billing periods
until all credits are used or until the end of the
annualized period.
(3) At the end of the year or annualized over the
period that service is supplied by means of net metering,
or in the event that the retail customer terminates
service with the electricity provider prior to the end of
the year or the annualized period, any remaining credits
in the customer's account shall expire.
(d-5) An electricity provider shall measure and charge or
credit for the net electricity supplied to eligible customers
or provided by eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113 of
this Act as of July 1, 2011 and whose electric delivery service
is provided and measured on a kilowatt-hour basis and electric
supply service is provided based on hourly pricing or
time-of-use rates in the following manner:
(1) If the amount of electricity used by the customer

HB0804 Engrossed - 672 - LRB102 10881 SPS 16211 b
during any hourly or time-of-use period exceeds the amount
of electricity produced by the customer, the electricity
provider shall charge the customer for the net electricity
supplied to and used by the customer according to the
terms of the contract or tariff to which the same customer
would be assigned to or be eligible for if the customer was
not a net metering customer.
(2) If the amount of electricity produced by a
customer during any hourly period or time-of-use period
exceeds the amount of electricity used by the customer
during that hourly period or time-of-use period, the
energy provider shall apply a credit for the net
kilowatt-hours produced in such period. The credit shall
consist of an energy credit and a delivery service credit.
The energy credit shall be valued at the same price per
kilowatt-hour as the electric service provider would
charge for kilowatt-hour energy sales during that same
hourly or time-of-use period. The delivery credit shall be
equal to the net kilowatt-hours produced in such hourly or
time-of-use period times a credit that reflects all
kilowatt-hour based charges in the customer's electric
service rate, excluding energy charges.
(e) An electricity provider shall measure and charge or
credit for the net electricity supplied to eligible customers
whose electric service has not been declared competitive
pursuant to Section 16-113 of this Act as of July 1, 2011 and

HB0804 Engrossed - 673 - LRB102 10881 SPS 16211 b
whose electric delivery service is provided and measured on a
kilowatt demand basis and electric supply service is not
provided based on hourly pricing in the following manner:
(1) If the amount of electricity used by the customer
during the billing period exceeds the amount of
electricity produced by the customer, then the electricity
provider shall charge the customer for the net electricity
supplied to and used by the customer as provided in
subsection (e-5) of this Section. The customer shall
remain responsible for all taxes, fees, and utility
delivery charges that would otherwise be applicable to the
net amount of electricity used by the customer.
(2) If the amount of electricity produced by a
customer during the billing period exceeds the amount of
electricity used by the customer during that billing
period, then the electricity provider supplying that
customer shall apply a 1:1 kilowatt-hour credit that
reflects the kilowatt-hour based charges in the customer's
electric service rate to a subsequent bill for service to
the customer for the net electricity supplied to the
electricity provider. The electricity provider shall
continue to carry over any excess kilowatt-hour credits
earned and apply those credits to subsequent billing
periods to offset any customer-generator consumption in
those billing periods until all credits are used or until
the end of the annualized period.

HB0804 Engrossed - 674 - LRB102 10881 SPS 16211 b
(3) At the end of the year or annualized over the
period that service is supplied by means of net metering,
or in the event that the retail customer terminates
service with the electricity provider prior to the end of
the year or the annualized period, any remaining credits
in the customer's account shall expire.
(e-5) An electricity provider shall provide electric
service to eligible customers who utilize net metering at
non-discriminatory rates that are identical, with respect to
rate structure, retail rate components, and any monthly
charges, to the rates that the customer would be charged if not
a net metering customer. An electricity provider shall not
charge net metering customers any fee or charge or require
additional equipment, insurance, or any other requirements not
specifically authorized by interconnection standards
authorized by the Commission, unless the fee, charge, or other
requirement would apply to other similarly situated customers
who are not net metering customers. The customer will remain
responsible for all taxes, fees, and utility delivery charges
that would otherwise be applicable to the net amount of
electricity used by the customer. Subsections (c) through (e)
of this Section shall not be construed to prevent an
arms-length agreement between an electricity provider and an
eligible customer that sets forth different prices, terms, and
conditions for the provision of net metering service,
including, but not limited to, the provision of the

HB0804 Engrossed - 675 - LRB102 10881 SPS 16211 b
appropriate metering equipment for non-residential customers.
(f) Notwithstanding the requirements of subsections (c)
through (e-5) of this Section, an electricity provider must
require dual-channel metering for customers operating eligible
renewable electrical generating facilities with a nameplate
rating up to 2,000 kilowatts and to whom the provisions of
neither subsection (d), (d-5), nor (e) of this Section apply.
In such cases, electricity charges and credits shall be
determined as follows:
(1) The electricity provider shall assess and the
customer remains responsible for all taxes, fees, and
utility delivery charges that would otherwise be
applicable to the gross amount of kilowatt-hours supplied
to the eligible customer by the electricity provider.
(2) Each month that service is supplied by means of
dual-channel metering, the electricity provider shall
compensate the eligible customer for any excess
kilowatt-hour credits at the electricity provider's
avoided cost of electricity supply over the monthly period
or as otherwise specified by the terms of a power-purchase
agreement negotiated between the customer and electricity
provider.
(3) For all eligible net metering customers taking
service from an electricity provider under contracts or
tariffs employing hourly or time of use rates, any monthly
consumption of electricity shall be calculated according

HB0804 Engrossed - 676 - LRB102 10881 SPS 16211 b
to the terms of the contract or tariff to which the same
customer would be assigned to or be eligible for if the
customer was not a net metering customer. When those same
customer-generators are net generators during any discrete
hourly or time of use period, the net kilowatt-hours
produced shall be valued at the same price per
kilowatt-hour as the electric service provider would
charge for retail kilowatt-hour sales during that same
time of use period.
(g) For purposes of federal and State laws providing
renewable energy credits or greenhouse gas credits, the
eligible customer shall be treated as owning and having title
to the renewable energy attributes, renewable energy credits,
and greenhouse gas emission credits related to any electricity
produced by the qualified generating unit. The electricity
provider may not condition participation in a net metering
program on the signing over of a customer's renewable energy
credits; provided, however, this subsection (g) shall not be
construed to prevent an arms-length agreement between an
electricity provider and an eligible customer that sets forth
the ownership or title of the credits.
(h) Within 120 days after the effective date of this
amendatory Act of the 95th General Assembly, the Commission
shall establish standards for net metering and, if the
Commission has not already acted on its own initiative,
standards for the interconnection of eligible renewable

HB0804 Engrossed - 677 - LRB102 10881 SPS 16211 b
generating equipment to the utility system. The
interconnection standards shall address any procedural
barriers, delays, and administrative costs associated with the
interconnection of customer-generation while ensuring the
safety and reliability of the units and the electric utility
system. The Commission shall consider the Institute of
Electrical and Electronics Engineers (IEEE) Standard 1547 and
the issues of (i) reasonable and fair fees and costs, (ii)
clear timelines for major milestones in the interconnection
process, (iii) nondiscriminatory terms of agreement, and (iv)
any best practices for interconnection of distributed
generation.
(h-3) On and after the effective date of this amendatory
Act of the 102nd General Assembly, it is the policy of the
State that:
(1) Electric utilities must provide interconnection
customers with a detailed accounting of the components of
the utility's cost to study and perform system upgrades,
with itemized lists of equipment costs, labor costs,
engineering costs, and administrative costs associated
with the study or system upgrade.
(2) An electric utility that has failed to meet an
interconnection timeline by more than 20 days is subject
to a penalty of $1,000 for each day over 20 days past the
applicable date upon which the utility action was due.
(3) The Illinois Commerce Commission shall, within 60

HB0804 Engrossed - 678 - LRB102 10881 SPS 16211 b
days after the effective date of this amendatory Act of
the 102nd General Assembly, hire or contract with an
independent grid engineer to address delays and disputes
between the utility and the interconnection customer.
Specifically, this independent engineer shall:
(A) review utility cost estimates at the request
of interconnection customers;
(B) resolve technical disputes between utilities
and interconnection customers regarding necessary
upgrades and costs thereof;
(C) authorize customers to self-supply
interconnection studies when the electric utility is
unable to provide such studies at a reasonable cost
and schedule; and
(D) authorize customers to self-build system
upgrades consistent with electric utility standards
when the electric utility cannot provide such upgrades
and interconnection facilities at a reasonable cost
and schedule.
The process to hire or contract with an independent
grid engineer described in this paragraph (3) is exempt
from the requirements of the Illinois Procurement Code,
pursuant to Section 20-10 of that Code.
(h-5) Within 90 days after the effective date of this
amendatory Act of the 102nd General Assembly, the Commission
shall open a proceeding to update the interconnection

HB0804 Engrossed - 679 - LRB102 10881 SPS 16211 b
standards and applicable utility tariffs. For the public
interest, safety, and welfare of Illinois residents, the
Commission may adopt emergency rules under Section 5-45 of the
Illinois Administrative Procedure Act to implement the
requirements of subsection (h-3) and this subsection (h-5). In
addition to the requirements of subsection (h-3), the
Commission shall also revise the standards to address critical
standards for interconnection and the following issues:
(1) transparency and accuracy of costs, both direct
and indirect, while maintaining system security through
the effective management of confidentiality agreements;
(2) standardization of typical costs associated with
interconnection;
(3) transparency of the interconnection queue or
queues and hosting capacity;
(4) development of hosting capacity maps that enable
greater visibility to customers about the locations with
the greatest need or availability for distributed
generation;
(5) predictability of the queue management process and
enforcement of timelines;
(6) ability to undertake group interconnection studies
and share interconnection costs among multiple applicants;
(7) minimum requirements for application to the
interconnection process and throughout the interconnection
process to avoid queue clogging behavior;

HB0804 Engrossed - 680 - LRB102 10881 SPS 16211 b
(8) requirements that the electric utility performing
the interconnection study justify its interconnection
study cost and the estimates of costs for identified
upgrades, and to cap payments required by the
interconnection customer for the electric utility
installed facilities to the lesser of +50% of the
Feasibility Study estimate, +25% of the System Impact
Study estimate, or +10% of the Facilities Study estimate;
(9) facilitation of the deployment of energy storage
systems while ensuring the continued grid safety and
reliability of the system, including addressing the
following:
(A) treatment of energy storage systems as
generation for purposes of the interconnection,
ownership, and operation;
(B) fair study assumptions that reflect the
operational profile of the energy storage device;
(C) streamlined notification-only interconnection
requirements for nonexporting systems that meet
utility criteria for safety and reliability, as is
determined through a robust stakeholder process; and
(D) enabling exports from customer-sited energy
storage systems for participation either in utility
programs or wholesale markets;
(10) establishment of a dispute resolution process
designed to address instances of unreasonable impediments

HB0804 Engrossed - 681 - LRB102 10881 SPS 16211 b
by the electric utility to the critical standards for
interconnection enumerated in paragraphs (1) through (9)
of this subsection (h-5). The Commission shall make
available adequate Commission staff for this dispute
resolution process to ensure that matters are decided on
an expedited basis; and
(11) other policies, processes, tariffs, and standards
associated with interconnection, including the creation of
standards and processes that support the achievement of
the objectives in subparagraph (K) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois Power
Agency Act
As part of this proceeding initiated under this subsection
(h-5), the Commission shall establish an interconnection
working group. The working group shall include representatives
from electric utilities, developers of renewable electric
generating facilities, representatives of interconnection
customers, Commission staff, and other stakeholders. The
working group shall be facilitated by Commission staff. The
working group shall examine and make recommendations regarding
best practices for interconnection process and customer
service for interconnecting customer adopting distributed
energy resources, including energy storage, interconnection of
new technologies, including smart inverters and energy
storage, and, without limitation, other technical, policy, and
tariff issues related to and affecting interconnection

HB0804 Engrossed - 682 - LRB102 10881 SPS 16211 b
performance and customer service.
The working group shall report to the Commission on
changes to interconnection rules and tariffs and any other
recommendations as determined by the working group within 6
months after its first meeting. The report shall include
positions and recommendations of the working group and
individual working group members. The report of the working
group shall be entered into evidence in the rulemaking process
mandated by this subsection (h-5). The working group shall be
reconvened one year following the enactment of the rules
adopted pursuant to this subsection (h-5) to recommend any
additional changes and assess the performance of the rules in
meeting the goals as described above.
(i) All electricity providers shall begin to offer net
metering no later than April 1, 2008.
(j) An electricity provider shall provide net metering to
eligible customers until both of the following occur: (i) the
statewide net metering penetration equals 5% and (ii) the
Commission approves the utility tariffs prescribed by
subsection (e) of Section 16-107.6 of this Act that make
distributed generation rebates available to all eligible
customers, including residential customers, and those tariffs
go into effect. After that time the load of its net metering
customers equals 5% of the total peak demand supplied by that
electricity provider during the previous year. After such time
as the load of the electricity provider's net metering

HB0804 Engrossed - 683 - LRB102 10881 SPS 16211 b
customers equals 5% of the total peak demand supplied by that
electricity provider during the previous year, eligible
customers that begin taking net metering shall no longer be
eligible for netting of delivery service credits as described
in subsection (n) of this Section only be eligible for netting
of energy.
(k) Each electricity provider shall maintain records and
report annually to the Commission the total number of net
metering customers served by the provider, as well as the
type, capacity, and energy sources of the generating systems
used by the net metering customers. Nothing in this Section
shall limit the ability of an electricity provider to request
the redaction of information deemed by the Commission to be
confidential business information.
(l)(1) Notwithstanding the definition of "eligible
customer" in item (ii) of subsection (b) of this Section, each
electricity provider shall allow net metering as set forth in
this subsection (l) and for the following projects:
(A) properties owned or leased by multiple customers
that contribute to the operation of an eligible renewable
electrical generating facility through an ownership or
leasehold interest of at least 200 watts in such facility,
such as a community-owned wind project, a community-owned
biomass project, a community-owned solar project, or a
community methane digester processing livestock waste from
multiple sources, provided that the facility is also

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located within the utility's service territory;
(B) individual units, apartments, or properties
located in a single building that are owned or leased by
multiple customers and collectively served by a common
eligible renewable electrical generating facility, such as
an office or apartment building, a shopping center or
strip mall served by photovoltaic panels on the roof; and
(C) subscriptions to community renewable generation
projects, including community renewable generation
projects on the customer's side of the billing meter of a
host facility and partially used for the customer's own
load.
In addition, the nameplate capacity of the eligible
renewable electric generating facility that serves the demand
of the properties, units, or apartments identified in
paragraphs (1) and (2) of this subsection (l) shall not exceed
2,000 kilowatts in nameplate capacity in total. Any eligible
renewable electrical generating facility or community
renewable generation project that is powered by photovoltaic
electric energy and installed after the effective date of this
amendatory Act of the 99th General Assembly must be 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.
(2) Notwithstanding anything to the contrary, an
electricity provider shall provide credits for the electricity

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produced by the projects described in paragraph (1) of this
subsection (l). The electricity provider shall provide credits
that include at least energy supply, capacity, transmission,
and the purchased electricity adjustment, as applicable, at
the subscriber's energy supply rate on the subscriber's
monthly bill equal to the subscriber's share of the production
of electricity from the project, as determined by paragraph
(3) of this subsection (l).
(3) For the purposes of facilitating net metering, the
owner or operator of the eligible renewable electrical
generating facility or community renewable generation project
shall be responsible for determining the amount of the credit
that each customer or subscriber participating in a project
under this subsection (l) is to receive in the following
manner:
(A) The owner or operator shall, on a monthly basis,
provide to the electric utility the kilowatthours of
generation attributable to each of the utility's retail
customers and subscribers participating in projects under
this subsection (l) in accordance with the customer's or
subscriber's share of the eligible renewable electric
generating facility's or community renewable generation
project's output of power and energy for such month. The
owner or operator shall electronically transmit such
calculations and associated documentation to the electric
utility, in a format or method set forth in the applicable

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tariff, on a monthly basis so that the electric utility
can reflect the monetary credits on customers' and
subscribers' electric utility bills. The electric utility
shall be permitted to revise its tariffs to implement the
provisions of this amendatory Act of the 102nd General
Assembly this amendatory Act of the 99th General Assembly.
The owner or operator shall separately provide the
electric utility with the documentation detailing the
calculations supporting the credit in the manner set forth
in the applicable tariff.
(B) For those participating customers and subscribers
who receive their energy supply from an alternative retail
electric supplier, the electric utility shall remit to the
applicable alternative retail electric supplier the
information provided under subparagraph (A) of this
paragraph (3) for such customers and subscribers in a
manner set forth in such alternative retail electric
supplier's net metering program, or as otherwise agreed
between the utility and the alternative retail electric
supplier. The alternative retail electric supplier shall
then submit to the utility the amount of the charges for
power and energy to be applied to such customers and
subscribers, including the amount of the credit associated
with net metering.
(C) A participating customer or subscriber may provide
authorization as required by applicable law that directs

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the electric utility to submit information to the owner or
operator of the eligible renewable electrical generating
facility or community renewable generation project to
which the customer or subscriber has an ownership or
leasehold interest or a subscription. Such information
shall be limited to the components of the net metering
credit calculated under this subsection (l), including the
bill credit rate, total kilowatthours, and total monetary
credit value applied to the customer's or subscriber's
bill for the monthly billing period.
For community renewable generation projects located behind
the meter of a host facility, the determination of the
quantity of energy eligible for crediting to participating
customers or subscribers of the community renewable generation
project shall be based on any energy production of the project
that exceeds the host's instantaneous on-site consumption
during the applicable billing period.
(l-5) Within 90 days after the effective date of this
amendatory Act of the 102nd General Assembly this amendatory
Act of the 99th General Assembly, each electric utility
subject to this Section shall file a tariff to implement the
provisions of subsection (l) of this Section, which shall,
consistent with the provisions of subsection (l), describe the
terms and conditions under which owners or operators of
qualifying properties, units, or apartments may participate in
net metering. The Commission shall approve, or approve with

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modification, the tariff within 120 days after the effective
date of this amendatory Act of the 102nd General Assembly this
amendatory Act of the 99th General Assembly.
(m) Nothing in this Section shall affect the right of an
electricity provider to continue to provide, or the right of a
retail customer to continue to receive service pursuant to a
contract for electric service between the electricity provider
and the retail customer in accordance with the prices, terms,
and conditions provided for in that contract. Either the
electricity provider or the customer may require compliance
with the prices, terms, and conditions of the contract.
(n) At such time, if any, that statewide net metering
penetration equals 5% the load of the electricity provider's
net metering customers equals 5% of the total peak demand
supplied by that electricity provider during the previous
year, as specified in subsection (j) of this Section, and the
distributed generation rebate tariff for the electricity
utility prescribed by subsection (e) of Section 16-107.6 of
this Act has gone into effect and the rebate is approved and
available to eligible customers, the net metering services
described in subsections (d), (d-5), (e), (e-5), and (f) of
this Section shall no longer be offered, except as to those
eligible renewable generating facilities for which retail
customers that are receiving net metering service under these
subsections at the time the net metering services under those
subsections are no longer offered; those systems shall

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continue to receive net metering services described in
subsections (d), (d-5), (e), (e-5), and (f) of this Section
for the lifetime of the system, regardless of whether those
retail customers change electricity providers or whether the
retail customer benefiting from the system changes. Those
retail customers that begin taking net metering service after
the date that net metering services are no longer offered
under such subsections shall be subject to the provisions set
forth in the following paragraphs (1) through (3) of this
subsection (n):
(1) An electricity provider shall charge or credit for
the net electricity supplied to eligible customers or
provided by eligible customers whose electric supply
service is not provided based on hourly pricing in the
following manner:
(A) If the amount of electricity used by the
customer during the billing period exceeds the amount
of electricity produced by the customer, then the
electricity provider shall charge the customer for the
net kilowatt-hour based electricity charges reflected
in the customer's electric service rate supplied to
and used by the customer as provided in paragraph (3)
of this subsection (n).
(B) If the amount of electricity produced by a
customer during the billing period exceeds the amount
of electricity used by the customer during that

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billing period, then the electricity provider
supplying that customer shall apply a 1:1
kilowatt-hour energy credit that reflects the
kilowatt-hour based energy charges in the customer's
electric service rate to a subsequent bill for service
to the customer for the net electricity supplied to
the electricity provider. The electricity provider
shall continue to carry over any excess kilowatt-hour
energy credits earned and apply those credits to
subsequent billing periods to offset any
customer-generator consumption in those billing
periods until all credits are used or until the end of
the annualized period.
(C) At the end of the year or annualized over the
period that service is supplied by means of net
metering, or in the event that the retail customer
terminates service with the electricity provider prior
to the end of the year or the annualized period, any
remaining credits in the customer's account shall
expire.
(2) An electricity provider shall charge or credit for
the net electricity supplied to eligible customers or
provided by eligible customers whose electric supply
service is provided based on hourly pricing in the
following manner:
(A) If the amount of electricity used by the

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customer during any hourly period exceeds the amount
of electricity produced by the customer, then the
electricity provider shall charge the customer for the
net electricity supplied to and used by the customer
as provided in paragraph (3) of this subsection (n).
(B) If the amount of electricity produced by a
customer during any hourly period exceeds the amount
of electricity used by the customer during that hourly
period, the energy provider shall calculate an energy
credit for the net kilowatt-hours produced in such
period. The value of the energy credit shall be
calculated using the same price per kilowatt-hour as
the electric service provider would charge for
kilowatt-hour energy sales during that same hourly
period.
(3) An electricity provider shall provide electric
service to eligible customers who utilize net metering at
non-discriminatory rates that are identical, with respect
to rate structure, retail rate components, and any monthly
charges, to the rates that the customer would be charged
if not a net metering customer. An electricity provider
shall charge the customer for the net electricity supplied
to and used by the customer according to the terms of the
contract or tariff to which the same customer would be
assigned or be eligible for if the customer was not a net
metering customer. An electricity provider shall not

HB0804 Engrossed - 692 - LRB102 10881 SPS 16211 b
charge net metering customers any fee or charge or require
additional equipment, insurance, or any other requirements
not specifically authorized by interconnection standards
authorized by the Commission, unless the fee, charge, or
other requirement would apply to other similarly situated
customers who are not net metering customers. The charge
or credit that the customer receives for net electricity
shall be at a rate equal to the customer's energy supply
rate. The customer remains responsible for the gross
amount of delivery services charges, supply-related
charges that are kilowatt based, and all taxes and fees
related to such charges. The customer also remains
responsible for all taxes and fees that would otherwise be
applicable to the net amount of electricity used by the
customer. Paragraphs (1) and (2) of this subsection (n)
shall not be construed to prevent an arms-length agreement
between an electricity provider and an eligible customer
that sets forth different prices, terms, and conditions
for the provision of net metering service, including, but
not limited to, the provision of the appropriate metering
equipment for non-residential customers. Nothing in this
paragraph (3) shall be interpreted to mandate that a
utility that is only required to provide delivery services
to a given customer must also sell electricity to such
customer.
(o) Within 90 days after the effective date of this

HB0804 Engrossed - 693 - LRB102 10881 SPS 16211 b
amendatory Act of the 102nd General Assembly, each electric
utility subject to this Section shall file a tariff that
shall, consistent with the provisions of this Section, propose
the terms and conditions under which an eligible customer may
participate in net metering. The Commission shall approve, or
approve with modification based on a stakeholder process, the
tariff within 120 days after the effective date of this
amendatory Act of the 102nd General Assembly. Each electric
utility shall file any changes to terms as a subsequent tariff
for approval or approval with modifications from the
Commission.
(Source: P.A. 99-906, eff. 6-1-17.)
(220 ILCS 5/16-107.6)
Sec. 16-107.6. Distributed generation rebate.
(a) In this Section:
"Distributed energy resource" means a wide range of
technologies that are located on the customer side of the
customer's electric meter and can provide value to the
distribution system, including, but not limited to,
distributed generation, energy storage, electric vehicles, and
demand response technologies.
"Smart inverter" means a device that converts direct
current into alternating current and meets the IEEE 1547-2018
equipment standards. Until devices that meet the IEEE
1547-2018 standard are available, devices that meet the UL

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1741 SA standard are acceptable can autonomously contribute to
grid support during excursions from normal operating voltage
and frequency conditions by providing each of the following:
dynamic reactive and real power support, voltage and frequency
ride-through, ramp rate controls, communication systems with
ability to accept external commands, and other functions from
the electric utility.
"Subscriber" has the meaning set forth in Section 1-10 of
the Illinois Power Agency Act.
"Subscription" has the meaning set forth in Section 1-10
of the Illinois Power Agency Act.
"Threshold date" means the date on which statewide net
metering penetration equals 5% the load of an electricity
provider's net metering customers equals 5% of the total peak
demand supplied by that electricity provider during the
previous year, as specified under subsection (j) of Section
16-107.5 of this Act.
(b) An electric utility that serves more than 200,000
customers in the State shall file a petition with the
Commission requesting approval of the utility's tariff to
provide a rebate to a retail customer who owns or operates
distributed generation that meets the following criteria:
(1) has a nameplate generating capacity no greater
than 2,000 kilowatts and is primarily used to offset that
customer's electricity load;
(2) is located on the customer's side of the billing

HB0804 Engrossed - 695 - LRB102 10881 SPS 16211 b
meter premises, for the customer's own use, and not for
commercial use or sales, including, but not limited to,
wholesale sales of electric power and energy;
(3) is located in the electric utility's service
territory; and
(4) is interconnected under rules adopted by the
Commission by means of the inverter or smart inverter
required by this Section, as applicable.
For purposes of this Section, "distributed generation"
shall satisfy the definition of distributed renewable energy
generation device set forth in Section 1-10 of the Illinois
Power Agency Act to the extent such definition is consistent
with the requirements of this Section.
In addition, any new photovoltaic distributed generation
that is installed after the effective date of this amendatory
Act of the 99th General Assembly must be installed by a
qualified person, as defined by subsection (i) of Section 1-56
of the Illinois Power Agency Act.
The tariff shall provide that the smart inverter
associated with the distributed generation shall provide
autonomous responses to grid conditions through its default
settings as approved by the Commission utility shall be
permitted to operate and control the smart inverter associated
with the distributed generation that is the subject of the
rebate for the purpose of preserving reliability during
distribution system reliability events and shall address the

HB0804 Engrossed - 696 - LRB102 10881 SPS 16211 b
terms and conditions of the operation and the compensation
associated with the operation. Nothing in this Section shall
negate or supersede Institute of Electrical and Electronics
Engineers equipment interconnection requirements or standards
or other similar standards or requirements. The tariff shall
not limit the ability of the smart inverter or other
distributed energy resource to provide wholesale market
products such as regulation, demand response, or other
services, or limit the ability of the owner of the smart
inverter or the other distributed energy resource to receive
compensation for providing those wholesale market products or
services. The tariff shall also provide for additional uses of
the smart inverter that shall be separately compensated and
which may include, but are not limited to, voltage and VAR
support, regulation, and other grid services. As part of the
proceeding described in subsection (e) of this Section, the
Commission shall review and determine whether smart inverters
can provide any additional uses or services. If the Commission
determines that an additional use or service would be
beneficial, the Commission shall determine the terms and
conditions of the operation and how the use or service should
be separately compensated.
(c) The proposed tariff authorized by subsection (b) of
this Section shall include the following participation terms
and formulae to calculate the value of the rebates to be
applied under this Section for distributed generation that

HB0804 Engrossed - 697 - LRB102 10881 SPS 16211 b
satisfies the criteria set forth in subsection (b) of this
Section:
(1) Until the utility's tariff or tariffs setting the
new compensation values established under subsection (e)
take effect utility files its tariff or tariffs to place
into effect the rebate values established by the
Commission under subsection (e) of this Section,
non-residential customers that are taking service under a
net metering program offered by an electricity provider
under the terms of Section 16-107.5 of this Act may apply
for a rebate as provided for in this Section. The value of
the rebate shall be $250 per kilowatt of nameplate
generating capacity, measured as nominal DC power output,
of a non-residential customer's distributed generation.
(2) After the utility's tariff or tariffs setting the
new rebate values established under subsection (e) (d) of
this Section take effect, retail customers may, as
applicable, make the following elections:
(A) Residential customers that are taking service
under a net metering program offered by an electricity
provider under the terms of Section 16-107.5 of this
Act on the threshold date may elect to either continue
to take such service under the terms of such program as
in effect on such threshold date for the useful life of
the customer's eligible renewable electric generating
facility as defined in such Section, or file an

HB0804 Engrossed - 698 - LRB102 10881 SPS 16211 b
application to receive a rebate under the terms of
this Section, provided that such application must be
submitted within 6 months after the effective date of
the tariff approved under subsection (d) of this
Section. The value of the rebate shall be the amount
established by the Commission and reflected in the
utility's tariff approved pursuant to subsection (e)
of this Section.
(B) Non-residential customers that are taking
service under a net metering program offered by an
electricity provider under the terms of Section
16-107.5 of this Act on the threshold date may apply
for a rebate as provided for in this Section. The value
of the rebate shall be the amount established by the
Commission and reflected in the utility's tariff
pursuant to subsection (e) of this Section.
(3) Upon approval of a rebate application submitted
under this subsection (c), the retail customer shall no
longer be entitled to receive any delivery service credits
for the excess electricity generated by its facility and
shall be subject to the provisions of subsection (n) of
Section 16-107.5 of this Act.
(4) To be eligible for a rebate described in this
subsection (c), customers who begin taking service after
the effective date of this amendatory Act of the 99th
General Assembly under a net metering program offered by

HB0804 Engrossed - 699 - LRB102 10881 SPS 16211 b
an electricity provider under the terms of Section
16-107.5 of this Act must have a smart inverter associated
with the customer's distributed generation.
(d) The Commission shall review the proposed tariff
submitted under subsections (b) and (c) of this Section and
may make changes to the tariff that are consistent with this
Section and with the Commission's authority under Article IX
of this Act, subject to notice and hearing. Following notice
and hearing, the Commission shall issue an order approving, or
approving with modification, such tariff no later than 240
days after the utility files its tariff.
(e) When statewide the total generating capacity of the
electricity provider's net metering penetration, as defined in
Section 16-107.5, customers is equal to 3%, the Commission
shall open an investigation into a an annual process and
formula for calculating the compensation value of rebates for
the retail customers described in subsections (b) and (f) of
this Section that submit rebate applications after the
threshold date for an electric utility that elected to file a
tariff pursuant to this Section. The investigation shall
include, at minimum, diverse sets of stakeholders, a review of
best practices in calculating the value of distributed energy
resource benefits, and assessments of present and future
technological capabilities of distributed energy resources.
Compensation shall reflect all known and measurable values of
the distributed energy resources over their full expected

HB0804 Engrossed - 700 - LRB102 10881 SPS 16211 b
useful lives. Compensation shall reflect, but shall not be
limited to, any geographic, time-based, performance-based, and
other benefits of distributed energy resources, as well as
technological capabilities and present and future grid needs.
The Commission's final order concluding this investigation
shall establish a formula for the compensation of distributed
energy resources, and an initial set of inputs for that
formula. The Commission's final order concluding this
proceeding shall also direct the utilities to update the
formula, on an annual basis, with inputs derived from their
integrated grid plans developed pursuant to Section 16-105.17.
The Commission shall also determine, as a part of its
investigation under this subsection, whether distributed
energy resources can provide any additional beneficial uses or
services through utility-controlled responses to grid
conditions. If the Commission determines that distributed
energy resources can provide additional beneficial uses or
services, the Commission shall determine the terms and
conditions for the operation and compensation of those uses
and services. That compensation shall be above and beyond any
rebate that the distributed energy resource receives. diverse
sets of stakeholders, calculations for valuing distributed
energy resource benefits to the grid based on best practices,
and assessments of present and future technological
capabilities of distributed energy resources. The value of
such rebates shall reflect the value of the distributed

HB0804 Engrossed - 701 - LRB102 10881 SPS 16211 b
generation to the distribution system at the location at which
it is interconnected, taking into account the geographic,
time-based, and performance-based benefits, as well as
technological capabilities and present and future grid needs.
The Commission shall consider the electric utility's
integrated grid plan developed pursuant to Section 16-105.17
of this Act to help identify the value of distributed energy
resources for the purpose of calculating the rebates described
in this subsection. The Commission shall determine additional
compensation for distributed generation that creates savings
and value on the distribution system by being co-located or in
close proximity to electric vehicle charging infrastructure in
use by medium-duty and heavy-duty vehicles, primarily serving
environmental justice communities, as outlined in the utility
integrated grid planning process under Section 16-105.17 of
this Act. No later than 10 days after the Commission enters its
final order under this subsection (e), each the utility shall
file its tariff or tariffs in compliance with the order,
including new tariffs for the recovery of costs incurred under
this subsection (e) that shall provide for volumetric-based
cost recovery, and the Commission shall approve, or approve
with modification, the tariff or tariffs within 240 45 days
after the utility's filing. For those rebate applications
filed after the threshold date but before the utility's tariff
or tariffs filed pursuant to this subsection (e) take effect,
the value of the rebate shall remain at the value established

HB0804 Engrossed - 702 - LRB102 10881 SPS 16211 b
in subsection (c) of this Section until the tariff is
approved. As part of the process, the Commission shall ensure
that the distributed generation rebate results in stable
growth of both small and large distributed generation projects
in Illinois as provided in subsection (j) of Section 16-107.5
of this Act, with particular attention to impacts to the
growth of residential distributed generation customers. The
Commission has the authority to establish interim rebate
values for part or all of a utility's service territory to
ensure transparency and stability of compensation for
distributed energy resources in the utility's service
territory.
(f) Notwithstanding any provision of this Act to the
contrary, the owner, developer, or subscriber of a generation
facility that is part of a net metering program provided under
subsection (l) of Section 16-107.5 shall also be eligible to
apply for the rebate described in this Section. A subscriber
to the generation facility may apply for a rebate in the amount
of the subscriber's subscription only if the owner, developer,
or previous subscriber to the same panel or panels has not
already submitted an application, and, regardless of whether
the subscriber is a residential or non-residential customer,
may be allowed the amount identified in paragraph (1) of
subsection (c) or in subsection (e) of this Section applicable
to such customer on the date that the application is
submitted. An application for a rebate for a portion of a

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project described in this subsection (f) may be submitted at
or after the time that a related request for net metering is
made.
(g) No later than 60 days after the utility receives an
application for a rebate under its tariff approved under
subsection (d) or (e) of this Section, the utility shall issue
a rebate to the applicant under the terms of the tariff. In the
event the application is incomplete or the utility is
otherwise unable to calculate the payment based on the
information provided by the owner, the utility shall issue the
payment no later than 60 days after the application is
complete or all requested information is received.
(h) An electric utility shall recover from its retail
customers all of the costs of the rebates made under a tariff
or tariffs approved under subsection (d) of placed into effect
under this Section, including, but not limited to, the value
of the rebates and all costs incurred by the utility to comply
with and implement subsections (b) and (c) of this Section,
but not including costs incurred by the utility to comply with
and implement subsection (e) of this Section, consistent with
the following provisions:
(1) The utility shall defer the full amount of its
costs incurred under this Section as a regulatory asset.
The total costs deferred as a regulatory asset shall be
amortized over a 15-year period. The unamortized balance
shall be recognized as of December 31 for a given year. The

HB0804 Engrossed - 704 - LRB102 10881 SPS 16211 b
utility shall also earn a return on the total of the
unamortized balance of the regulatory assets, less any
deferred taxes related to the unamortized balance, at an
annual rate equal to the utility's weighted average cost
of capital that includes, based on a year-end capital
structure, the utility's actual cost of debt for the
applicable calendar year and a cost of equity, which shall
be calculated as the sum of (i) the average for the
applicable calendar year of the monthly average yields of
30-year U.S. Treasury bonds published by the Board of
Governors of the Federal Reserve System in its weekly H.15
Statistical Release or successor publication; and (ii) 580
basis points, including a revenue conversion factor
calculated to recover or refund all additional income
taxes that may be payable or receivable as a result of that
return.
When an electric utility creates a regulatory asset
under the provisions of this Section, the costs are
recovered over a period during which customers also
receive a benefit, which is in the public interest.
Accordingly, it is the intent of the General Assembly that
an electric utility that elects to create a regulatory
asset under the provisions of this Section shall recover
all of the associated costs, including, but not limited
to, its cost of capital as set forth in this Section. After
the Commission has approved the prudence and

HB0804 Engrossed - 705 - LRB102 10881 SPS 16211 b
reasonableness of the costs that comprise the regulatory
asset, the electric utility shall be permitted to recover
all such costs, and the value and recoverability through
rates of the associated regulatory asset shall not be
limited, altered, impaired, or reduced. To enable the
financing of the incremental capital expenditures,
including regulatory assets, for electric utilities that
serve less than 3,000,000 retail customers but more than
500,000 retail customers in the State, the utility's
actual year-end capital structure that includes a common
equity ratio, excluding goodwill, of up to and including
50% of the total capital structure shall be deemed
reasonable and used to set rates.
(2) The utility, at its election, may recover all of
the costs it incurs under this Section as part of a filing
for a general increase in rates under Article IX of this
Act, as part of an annual filing to update a
performance-based formula rate under subsection (d) of
Section 16-108.5 of this Act, or through an automatic
adjustment clause tariff, provided that nothing in this
paragraph (2) permits the double recovery of such costs
from customers. If the utility elects to recover the costs
it incurs under this Section through an automatic
adjustment clause tariff, the utility may file its
proposed tariff together with the tariff it files under
subsection (b) of this Section or at a later time. The

HB0804 Engrossed - 706 - LRB102 10881 SPS 16211 b
proposed tariff shall provide for an annual
reconciliation, less any deferred taxes related to the
reconciliation, with interest at an annual rate of return
equal to the utility's weighted average cost of capital as
calculated under paragraph (1) of this subsection (h),
including a revenue conversion factor calculated to
recover or refund all additional income taxes that may be
payable or receivable as a result of that return, of the
revenue requirement reflected in rates for each calendar
year, beginning with the calendar year in which the
utility files its automatic adjustment clause tariff under
this subsection (h), with what the revenue requirement
would have been had the actual cost information for the
applicable calendar year been available at the filing
date. The Commission shall review the proposed tariff and
may make changes to the tariff that are consistent with
this Section and with the Commission's authority under
Article IX of this Act, subject to notice and hearing.
Following notice and hearing, the Commission shall issue
an order approving, or approving with modification, such
tariff no later than 240 days after the utility files its
tariff.
(i) An electric utility shall recover from its retail
customers, on a volumetric basis, all of the costs of the
rebates made under a tariff or tariffs placed into effect
under subsection (e) of this Section, including, but not

HB0804 Engrossed - 707 - LRB102 10881 SPS 16211 b
limited to, the value of the rebates and all costs incurred by
the utility to comply with and implement subsection (e) of
this Section, consistent with the following provisions:
(1) The utility may defer a portion of its costs as a
regulatory asset. The Commission shall determine the
portion that may be appropriately deferred as a regulatory
asset. Factors that the Commission shall consider in
determining the portion of costs that shall be deferred as
a regulatory asset include, but are not limited to: (i)
whether and the extent to which a cost effectively
deferred or avoided other distribution system costs; (ii)
the extent to which a cost provides environmental
benefits; (iii) the extent to which a cost improves system
reliability or resilience; (iv) the electric utility's
distribution system plan developed pursuant to Section
16-108.17 of this Act; and (v) such other factors as the
Commission deems appropriate. The remainder of costs shall
be deemed an operating expense and shall be recoverable if
found prudent and reasonable by the Commission.
The total costs deferred as a regulatory asset shall
be amortized over a 15-year period. The unamortized
balance shall be recognized as of December 31 for a given
year. The utility shall also earn a return on the total of
the unamortized balance of the regulatory assets, less any
deferred taxes related to the unamortized balance, at an
annual rate equal to the utility's weighted average cost

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of capital that includes, based on a year-end capital
structure, the utility's actual cost of debt for the
applicable calendar year and a cost of equity, which shall
be calculated as the sum of: (I) the average for the
applicable calendar year of the monthly average yields of
30-year U.S. Treasury bonds published by the Board of
Governors of the Federal Reserve System in its weekly H.15
Statistical Release or successor publication; and (II) 580
basis points, including a revenue conversion factor
calculated to recover or refund all additional income
taxes that may be payable or receivable as a result of that
return.
When an electric utility creates a regulatory asset
under the provisions of this subsection (i), the costs are
recovered over a period during which customers also
receive a benefit, which is in the public interest.
Accordingly, it is the intent of the General Assembly that
an electric utility that elects to create a regulatory
asset under the provisions of this Section shall recover
all of the associated costs, including, but not limited
to, its cost of capital as set forth in this Section. After
the Commission has approved the prudence and
reasonableness of the costs that comprise the regulatory
asset, the electric utility shall be permitted to recover
all such costs, and the value and recoverability through
rates of the associated regulatory asset shall not be

HB0804 Engrossed - 709 - LRB102 10881 SPS 16211 b
limited, altered, impaired, or reduced. To enable the
financing of the incremental capital expenditures,
including regulatory assets, for electric utilities that
serve less than 3,000,000 retail customers but more than
500,000 retail customers in the State, the utility's
actual year-end capital structure that includes a common
equity ratio, excluding goodwill, of up to and including
50% of the total capital structure shall be deemed
reasonable and used to set rates.
(2) The utility may recover all of the costs through
an automatic adjustment clause tariff, on a volumetric
basis. The utility may file its proposed cost-recovery
tariff together with the tariff it files under subsection
(e) of this Section or at a later time. The proposed tariff
shall provide for an annual reconciliation, less any
deferred taxes related to the reconciliation, with
interest at an annual rate of return equal to the
utility's weighted average cost of capital as calculated
under paragraph (1) of this subsection (i), including a
revenue conversion factor calculated to recover or refund
all additional income taxes that may be payable or
receivable as a result of that return, of the revenue
requirement reflected in rates for each calendar year,
beginning with the calendar year in which the utility
files its automatic adjustment clause tariff under this
subsection (i), with what the revenue requirement would

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have been had the actual cost information for the
applicable calendar year been available at the filing
date. The Commission shall review the proposed tariff and
may make changes to the tariff that are consistent with
this Section and with the Commission's authority under
Article IX of this Act, subject to notice and hearing.
Following notice and hearing, the Commission shall issue
an order approving, or approving with modification, such
tariff no later than 240 days after the utility files its
tariff.
(j) (i) No later than 90 days after the Commission enters
an order, or order on rehearing, whichever is later, approving
an electric utility's proposed tariff under subsection (d) of
this Section, the electric utility shall provide notice of the
availability of rebates under this Section. Subsequent to the
utility's notice, any entity that offers in the State, for
sale or lease, distributed generation and estimates the dollar
saving attributable to such distributed generation shall
provide estimates based on both delivery service credits, if
applicable and if available under Section 16-107.5 of this
Act, and the rebates available under this Section.
(Source: P.A. 99-906, eff. 6-1-17.)
(220 ILCS 5/16-107.7 new)
Sec. 16-107.7. Residential time-of-use pricing.
(a) The General Assembly finds that time-of-use rates and

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pricing plans can lower energy costs for consumers and reduce
grid costs as well as help Illinois achieve its energy policy
goals by improving load shape, encouraging energy
conservation, and shifting usage away from periods where
fossil fuels are used to meet peak demand. Further, by
providing consumers information relating the costs of service
to the time of energy usage, time-of-use rates can help
consumers reduce their energy bills by using electricity when
it is less costly. Time-of-use rates can help allocate
electricity system costs more accurately and thus equitably to
those who cause costs. Such rates can reduce the need for
ramping resources and increase the grid's ability to
cost-effectively integrate greater quantities of variable
renewable energy and distributed energy resources.
(b) An electric utility that has a tariff in effect under
Section 16-108.5 as of the effective date of this amendatory
Act of the 102nd General Assembly shall also offer at least one
market-based, time-of-use rate for eligible retail customers
that choose to take power and energy supply service from the
utility. The utility shall file its time-of-use rate tariff no
later than 120 days after the effective date of this
amendatory Act of the 102nd General Assembly, and each utility
subject to this requirement shall implement the requirements
of this paragraph by filing a tariff with the Commission. The
tariff or tariffs shall be subject to the following
provisions:

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(1) If more than one tariff is proposed, at least one
tariff shall include at least 3 time blocks: a peak time
block defined as 2 p.m. to 7 p.m. on nonholiday weekdays or
the 5 consecutive hours best reflecting the highest system
peak demands, an off-peak time block defined as 10 a.m. to
2 p.m. and 7 p.m. to 10 p.m. on nonholiday weekdays or the
7 total hours, occurring in some combination before and
after the peak period, which reflect the next highest
system peak demands, and a super-off-peak time block
defined as all other hours including weekend days.
2) This tariff shall strive to achieve price ratios
between the blocks as follows: the super-off-peak time
block price shall be no less than zero but no greater than
one-half of the price of the off-peak time block price,
and the off-peak time block price shall be no greater than
one-half of the price of the peak time block price.
(3) The time-of-use rate shall include the costs of
electric capacity, costs of transmission services, and
charges for network integration transmission service,
transmission enhancement, and locational reliability, as
these terms are defined in the PJM Interconnection LLC
Open Access Transmission Tariff and manuals on January 1,
2019, within the prices for each time block and seasonal
block in which the associated costs generally are
incurred. If the Open Access Transmission Tariff or
manuals subsequently renames those terms, the services

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reflected under those terms shall continue to be included
in the time-of-use rate described in this paragraph (2).
(4) Adjustments to the charges set by the tariff may
be made on a semi-annual basis, as follows: each May and
November, the utility shall submit to the Commission,
through an informational filing, its updated charges, and
such charges shall take effect beginning with the June
monthly billing period and December monthly billing
period, respectively.
(5) The tariff shall include a purchased energy
adjustment to fully recover the supply costs for the
customers taking service under this tariff.
"Eligible customers" includes, but is not limited to,
customers participating in net electricity metering under the
terms of Section 16-107.5.
(c) The Commission shall, after notice and hearing,
approve the tariff or tariffs with modifications the
Commission finds necessary to improve the program design,
customer participation in the program, or coordination with
existing utility pricing programs, energy efficiency programs,
demand response programs, and any other programs supporting
Illinois energy policy goals and the integration of
distributed energy resources. The Commission shall also
consider how the proposed time-of-use rate design reflects the
system costs and usage patterns of the utility. A proceeding
under this subsection may not exceed 120 days in length.

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(d) If the Commission issues an order pursuant to this
subsection, the affected electric utility shall contract with
an entity not affiliated with the electric utility to serve as
a program administrator to develop and implement a program to
provide consumer outreach, enrollment, and education
concerning time-of-use pricing and to establish and administer
an information system and technical and other customer
assistance that is necessary to enable customers to manage
electricity use. The program administrator: (i) shall be
selected and compensated by the electric utility, subject to
Commission approval; (ii) shall have demonstrated technical
and managerial competence in the development and
administration of demand management programs; and (iii) may
develop and implement risk management, energy efficiency, and
other services related to energy use management for which the
program administrator shall be compensated by participants in
the program receiving such services. The electric utility
shall provide the program administrator with all information
and assistance necessary to perform the program
administrator's duties, including, but not limited to,
customer, account, and energy use data. The electric utility
shall permit the program administrator to include inserts in
residential customer bills 2 times per year to assist with
customer outreach and enrollment.
The program administrator shall submit an annual report to
the electric utility no later than April 1 of each year

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describing the operation and results of the program, including
information concerning the number and types of customers using
the program, changes in customers' energy use patterns, an
assessment of the value of the program to both participants
and nonparticipants, and recommendations concerning
modification of the program and the tariff or tariffs filed
under this Section. This report shall be filed by the electric
utility with the Commission within 30 days after receipt and
shall be available to the public on the Commission's website.
(e) Once the tariff or tariffs has been in effect for 24
months, the Commission may, upon complaint, petition, or its
own initiative, open a proceeding to investigate whether
changes or modifications to the tariff or tariffs, program
administration and any other program design element is
necessary to achieve the goals described in subsection (a) of
this Section. Such a proceeding may not last more than 120 days
from the date upon which the investigation is opened by
Commission order.
(f) An electric utility shall be entitled to recover
reasonable costs incurred in complying with this Section,
provided that recovery of the costs is fairly apportioned
among its residential customers.
(g) The electric utility's tariff or tariffs filed
pursuant to this Section shall be subject to the provisions of
Article IX of this Act insofar as they do not conflict with
this Section.

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(h) This Section does not apply to any electric utility
providing service to 100,000 or fewer customers.
(220 ILCS 5/16-107.8 new)
Sec. 16-107.8. Beneficial electrification.
(a) It is the intent of the General Assembly to decrease
reliance on fossil fuels, reduce pollution from the
transportation sector, increase access to electrification for
all consumers, and ensure that electric vehicle adoption and
increased electricity usage and demand do not place
significant additional burdens on the electric system and
create benefits for Illinois residents.
(b) As used in this Section:
"Beneficial electrification programs" means programs that
lower carbon dioxide emissions, replace fossil fuel use,
create cost savings, improve electric grid operations, reduce
increases to peak demand, improve electric usage load shape,
and align electric usage with times of renewable generation.
All beneficial electrification programs shall provide for
incentives such that customers are induced to use electricity
at times of low overall system usage or at times when
generation from renewable energy sources is high. "Beneficial
electrification programs" include a portfolio of the
following:
(1) time-of-use electric rates;
(2) hourly pricing electric rates;

HB0804 Engrossed - 717 - LRB102 10881 SPS 16211 b
(3) charging plans or rates set by electric vehicle
service providers that encourage off-peak charging;
(4) optimized charging programs or programs that
encourage charging at times beneficial to the electric
grid;
(5) demand-response programs specifically related to
electrification efforts;
(6) incentives for electrification and associated
infrastructure tied to using electricity at beneficial
times;
(7) incentives for electrification and associated
infrastructure targeted to medium-duty and heavy-duty
vehicles used by transit agencies;
(8) incentives for electrification and associated
infrastructure targeted to school buses;
(9) incentives for electrification and associated
infrastructure for medium-duty and heavy-duty government
and private fleet vehicles;
(10) low-income programs that provide access to
electric vehicles for communities where car ownership or
new car ownership is not common;
(11) incentives for electrification in low-income and
environmental justice communities;
(12) incentives or programs to enable quicker adoption
of electric vehicles by developing public charging
stations in dense areas, workplaces, and in low-income

HB0804 Engrossed - 718 - LRB102 10881 SPS 16211 b
communities;
(13) incentives or programs to develop electric
vehicles infrastructure to ensure electric vehicles can
travel statewide, filling the gaps in deployment,
particularly in rural areas or along highway corridors;
(14) incentives or planning to encourage the
development in close proximity of electrification and
renewable energy generation to reduce grid impacts; and
(15) other such programs as defined by the Commission.
"Disadvantaged participant contractor" has the meaning set
forth in Clean Jobs, Workforce and Contractor Equity Act.
"Displaced energy worker" has the meaning set forth in
Section 20-10 of the Energy Community Reinvestment Act.
"Environmental justice communities" means the definition
of that term based on existing methodologies and findings,
used and as may be updated by the Illinois Power Agency and its
program administrator in the Illinois Solar for All Program.
"Labor peace agreement" means an agreement between an
entity and any labor organization recognized under the
National Labor Relations Act, referred to in this Act as a bona
fide labor organization, that may prohibit labor organizations
and members from engaging in picketing, work stoppages,
boycotts, and any other economic interference with the entity.
This agreement means that the entity has agreed not to disrupt
efforts by the bona fide labor organization to communicate
with, and attempt to organize and represent, the entity's

HB0804 Engrossed - 719 - LRB102 10881 SPS 16211 b
employees. The agreement shall provide a bona fide labor
organization access at reasonable times to areas in which the
entity's employees work, for the purpose of meeting with
employees to discuss their right to representation, employment
rights under State law, and terms and conditions of
employment. This type of agreement shall not mandate a
particular method of election or certification of the bona
fide labor organization.
"Low-income" means persons and families whose income does
not exceed 80% of area median income, adjusted for family size
and revised every 2 years.
"Optimized charging programs" mean programs whereby owners
of electric vehicles can set their vehicles to be charged
based on the electric system's current demand, retail or
wholesale market rates, incentives, the carbon or other
pollution intensity of the electric generation mix, the
provision of grid services, efficient use of the electric
grid, or the availability of clean energy generation.
Optimized charging programs may be operated by utilities as
well as third parties.
"BIPOC" and "black, indigenous, and people of color" are
identical in meaning and have the same definition as used in
the Clean Jobs, Workforce and Contractor Equity Act.
(c) No later than November 30, 2021, electric utilities
serving greater than 500,000 customers in the State shall
initiate a stakeholder workshop process to solicit input on

HB0804 Engrossed - 720 - LRB102 10881 SPS 16211 b
the design of beneficial electrification programs that the
utility shall offer. The stakeholder workshop process shall
take into consideration the benefits of electric vehicle
adoption and barriers to adoption, including:
(1) the benefit of lower bills for customers who do
not charge electric vehicles;
(2) benefits from electric vehicle usage of the
distribution system;
(3) the avoidance and reduction in capacity costs from
optimized charging and off-peak charging;
(4) energy price and cost reductions; and
(5) environmental benefits, including greenhouse gas
emission and other pollution reductions.
(6) current barriers to mass-market adoption,
including cost of ownership and availability of charging
stations;
(7) benefits of and incentives for medium-duty and
heavy-duty fleet vehicle electrification;
(8) opportunities for environmental justice and
low-income communities to benefit from electrification.
The workshops should consider barriers, incentives,
enabling rate structures, and other opportunities for the
bill reduction and environmental benefits described in
this subsection.
Stakeholders and the electric utilities shall propose
discrete beneficial electrification programs and shall provide

HB0804 Engrossed - 721 - LRB102 10881 SPS 16211 b
estimates of the costs and benefits of those programs in the
workshops. The process shall be open and transparent with
inclusion of stakeholder interests, including stakeholders
representing environmental justice and low-income communities.
(d) No later than May 31, 2022, electric utilities serving
greater than 500,000 customers in the State shall file a
Beneficial Electrification Plan with the Illinois Commerce
Commission for programs that start no later than January 1,
2023. The Beneficial Electrification Plan shall specifically
address, at a minimum, the following:
(1) the development and implementation of time-of-use
rates and their benefit for electric vehicle users and for
all customers;
(2) the development of optimized charging programs to
achieve savings identified, and new contracts and
compensation for services in those programs, through
signals that allow electric vehicle charging to respond to
local system conditions, manage critical peak periods,
serve as a demand response or peak resource, and maximize
renewable energy use and integration into the grid;
(3) plans to address environmental justice interests
and the provision of opportunities for residents and
businesses in environmental justice communities to
directly benefit from transportation electrification;
(4) financial and other challenges to electric vehicle
usage in low-income communities, and strategies for

HB0804 Engrossed - 722 - LRB102 10881 SPS 16211 b
overcoming those challenges, particularly in communities
and for people for whom car ownership is not an option;
(5) plans to increase access to Level 3 Public
Electric Vehicle Charging Infrastructure located along
transportation corridors to serve vehicles that need
quicker charging times and vehicles of persons who have no
other access to charging infrastructure, regardless of
whether those projects participate in optimized charging
programs;
(6) opportunities for coordination and cohesion with
electric vehicle and electric vehicle charging equipment
incentives established by any agency, department, board,
or commission of the State of Illinois, any other unit of
government in the State, any national programs, or any
unit of the federal government;
(7) ideas for the development of online tools,
applications, and data sharing that provide essential
information to those charging electric vehicles, and
enable an automated charging response to price signals,
emission signals, real-time renewable generation
production, and other Commission-approved or
customer-desired indicators of beneficial charging times;
and
(8) an outline of proposed customer education
measures, including a shadow billing option to allow
customers to compare current and historical monthly bills

HB0804 Engrossed - 723 - LRB102 10881 SPS 16211 b
under different rate plans, cost calculators to compare
electric vehicles costs with internal combustion engine
vehicle costs, the use of utility communications for
proactive customer engagement on electric vehicles, rate
and cost comparison information materials for car dealers
and their customers, and direct outreach to diverse
communities through community and other organizations.
(e) The initial Beneficial Electrification Plans submitted
under subsection (d) shall include at least the following
programs:
(1) Electric Vehicle Access for All Program. Electric
utilities that serve more than 3,000,000 retail customers
in the State shall reimburse $7,500,000 per year, or 15%
of the total plan budget, to the Department of Commerce
and Economic Opportunity for programs developed under the
Electric Vehicle Access for All Program. Electric
utilities that serve less than 3,000,000 retail customers
but more than 500,000 retail customers in the State shall
reimburse $3,150,000, or 15% of the total plan budget, to
the Department of Commerce and Economic Opportunity for
programs developed under the Electric Vehicle for All
Program.
(2) Medium-Duty and Heavy-Duty Vehicle Charging
Programs. Electric utilities that serve more than
3,000,000 retail customers in the State must offer a
rebate program that averages $25,000,000 per year, or 50%

HB0804 Engrossed - 724 - LRB102 10881 SPS 16211 b
of the program budget, for the duration of the plan for
rebates to government entity retail customers to support
the electrification of public transit, as well as
government, commercial and school bus fleet vehicles.
Electric utilities that serve less than 3,000,000 retail
customers but more than 500,000 retail customers in the
State shall reimburse $10,500,000, or 50% of the program
budget, for the duration of the plan for rebates to
government entity retail customers to support the
electrification of public transit, as well as government,
commercial and school bus fleet vehicles. Rebates for
public transit agencies must be used toward the purchase
and installation of all-electric transit buses, the
purchase and installation of electric vehicle charging
infrastructure, or necessary supporting infrastructure, to
be used in transit routes that primarily serve low-income
communities or environmental justice communities. The
amount of the rebate should be designed to cover the
expected capital gap and needs of Illinois transit
agencies. Rebates for government, commercial, or other
retail customers to support the electrification of fleets
and school buses must be used toward the purchase and
installation of electric transit or school buses, electric
vehicle charging infrastructure, or necessary supporting
infrastructure, for vehicles that primarily serve or
travel through low-income communities or environmental

HB0804 Engrossed - 725 - LRB102 10881 SPS 16211 b
justice communities. Recipients of rebates under this
paragraph must participate in an optimized charging
program. Operations, whether private or public, that
primarily serve governmental or educational institutions,
shall be prioritized over commercial vehicle operations
that do not primarily serve a governmental or educational
institution.
(3) Mass-market program. All electric utilities
serving more than 500,000 customers may spend up to the
remaining plan budget each year on rebates that support
the widespread adoption and integration of electric
vehicles. Electric utilities serving more than 500,000
customers may offer a rebate program that offers retail
customers a rebate of up to $500 for the purchase or
installation of electric vehicle charging infrastructure,
provided that the customer takes electric service under an
hourly pricing program or a time-of-use rate, or
participates in an optimized charging program. Further,
electric utilities serving more than 500,000 customers
shall offer a rebate program to incentivize the purchase
and installation of publicly accessible electric vehicle
charging stations throughout its service territory, with a
prioritization for workplace charging and public charging
in dense urban areas and in low-income communities.
Finally, electric utilities serving more than 500,000
customers shall offer a rebate program to incentivize the

HB0804 Engrossed - 726 - LRB102 10881 SPS 16211 b
development of publicly accessible fast charging stations
targeted to fill the gaps in deployment, and along State
highway corridors.
(f) The Commission shall open an investigation into the
electric utility's (if serving more than 500,000 customers)
Beneficial Electrification Plan to determine if the proposed
plan is cost-beneficial. The plan shall be determined to be
cost-beneficial if the total cost of beneficial
electrification expenditures is less than the net present
value of increased electricity costs (defined as marginal
avoided energy, avoided capacity, and avoided transmission and
distribution system costs) avoided by programs under the plan,
the net present value of reductions in other customer energy
costs, and the societal value of reduced carbon emissions and
surface-level pollutants, particularly in environmental
justice communities. The calculation of costs and benefits
should be based on net impacts. The Commission shall review
the Plan and determine whether the portfolio of programs or
initiatives as a whole is optimized to address all key policy
objectives, including: maximizing total energy cost savings,
maximizing rate reductions so that nonparticipants can
benefit, facilitating better grid management, maximizing
carbon emission reductions, reducing other harmful emissions
and particularly localized emissions in economically
disadvantaged and environmental justice communities, and
addressing environmental justice interests by ensuring there

HB0804 Engrossed - 727 - LRB102 10881 SPS 16211 b
are significant opportunities for residents and businesses in
environmental justice communities to directly participate in
and benefit from programs.
(g) Any electric utility serving more than 500,000
customers shall update its Beneficial Electrification Plan
every 3 years and, beginning with the first update, shall
develop the Plan in conjunction with the distribution system
planning process described in Section 16-105.17 of this Act,
including incorporation of stakeholder feedback from that
process.
(h) For utilities serving more than 3,000,000 retail
customers in the State, the annual total cost of all programs
and initiatives in the Beneficial Electrification Plan shall
not exceed $50,000,000 per year and shall be recovered
volumetrically from all retail customers as an operating
expense in its Multi-Year Rate Plan. For utilities serving
less than 3,000,000 retail customers, but more than 500,000
retail customers, the annual total cost of all programs and
initiatives in the Beneficial Electrification Plan shall not
exceed $21,000,000 per year and shall be recovered
volumetrically from all retail customers as an operating
expense in its Multi-Year Rate Plan.
(i) In meeting the requirements of this Section, to the
extent feasible and consistent with State and federal law, all
beneficial electrification programs included in Beneficial
Electrification Plans shall provide employment opportunities

HB0804 Engrossed - 728 - LRB102 10881 SPS 16211 b
for all segments of the population and workforce, including
BIPOC-owned and women-owned business enterprises, as well as
BIPOC-owned and women-owned worker-owned cooperatives or other
such employee-owned entities, and shall not, consistent with
State and federal law, discriminate based on race or
socioeconomic status.
Specifically, to the extent feasible and consistent with
State and federal law, as utilities conduct selection and
contracting of businesses, nonprofit organizations, or
worker-owned cooperatives for implementation of beneficial
electrification programs or projects providing electrification
for vehicles and associated electric vehicle infrastructure,
utilities must give preference to businesses, nonprofit
organizations, or worker-owned cooperatives as described in
the workforce equity actions points calculation as specified
in this subsection (i). Utilities shall track and award equity
actions in selection of businesses, nonprofit organizations,
or worker-owned cooperatives, using a points system totaling a
maximum of 235 points. This system shall consider both equity
actions to meet the goals described in this Section and the bid
prices, as specified in paragraphs (1) through (9) of this
subsection (i). Businesses, nonprofit organizations, and
worker-owned cooperatives that are selected and contracted for
implementation of beneficial electrification programs or
projects providing electrification for vehicles and associated
electric vehicle infrastructure by utilities shall submit no

HB0804 Engrossed - 729 - LRB102 10881 SPS 16211 b
later than June 1 of each applicable year an annual report of
elements described in the equity actions points calculation in
paragraphs (1) through (9) of this subsection (i) for the
first 3 years after the year in which installation contracts
were awarded.
(1) Hiring Equity Action (up to 20 points): awarded based
on the percentage of the company's or entity's workforce
(measured by full-time equivalents as defined by the
Government Accountability Office of the United States
Congress) are black, indigenous, and people of color and are
paid at or above the prevailing wage. One point shall be
awarded for each 5% of the workforce which is composed of BIPOC
persons who are also paid at or above the prevailing wage, up
to a maximum of 20 points.
(2) Clean Jobs Workforce Hubs and Returning Residents
Action (up to 20 points): awarded based on the percentage of
the workers associated with the project who are graduates or
trainees from the Clean Jobs Workforce Hubs Network Program,
or the Returning Residents Clean Jobs Training Program, or
equivalent certification, and paid at or above the prevailing
wage; one point shall be awarded for each 5% of the workforce
which is composed of Clean Jobs Workforce Hubs Network Program
graduates or trainees or Returning Residents Clean Jobs
Training Program graduates or trainees who are also paid a
living wage, up to a maximum of 20 points.
(3) BIPOC Business Enterprise Action (30 points): being

HB0804 Engrossed - 730 - LRB102 10881 SPS 16211 b
(i) an entity defined as a minority-owned business under
Section 2 of the Business Enterprise for Minorities, Women,
and Persons with Disabilities Act or (ii) an entity, including
a business, a nonprofit, or a worker-owned cooperative
registered with other state, regional, or local programs
intended to certify minority-owned entities.
(4) Contracting Equity Action (20 points): awarded based
on the percentage of the company's or entity's subcontractors
or vendors are entities defined as a minority-owned business
or a women-owned business under Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act or on the percentage of the subcontracted
workers associated with the project, including from all
subcontractors and vendors, are BIPOC persons (members of a
racial or ethnic minority group) paid at or above the
prevailing wage; 5 points shall be awarded for each 10% of
either subcontractors or subcontractors' workers who are BIPOC
persons, whichever is greater, up to a maximum of 20 points. If
a company or entity does not use subcontractors or vendors,
points awarded for the Contracting Equity Action shall be
equivalent to the point value awarded for the Hiring Equity
Action under paragraph(1).
(5) Expanding Clean Energy Entrepreneurship Action (20
points): awarded to entities who are current or former
disadvantaged participant contractors in the Expanding Clean
Energy Entrepreneurship and Contractor Incubators Network

HB0804 Engrossed - 731 - LRB102 10881 SPS 16211 b
Program or current or former participants in the Illinois
Clean Energy Black, Indigenous, and People of Color Primes
Contractor Accelerator Program.
(6) Community Benefits Action (15 points): (i) for
projects 100 kW in size or larger, project has an executed
Community Benefits Agreement that could include, but is not
limited to a commitment to hire local workers, union workers,
energy workers transitioning to clean energy jobs, Clean Jobs
Workforce Hubs Network Program graduates, or current or former
disadvantaged participant contractors in the Expanding Clean
Energy Entrepreneurship and Contractor Incubators Network
Program; a commitment to pay workers at or above the
prevailing wage; and a commitment to give communities
ownership opportunities in electric vehicle projects, where
relevant; and (ii) for projects under 100 kW in size,
companies pay their workforces at or above the prevailing
wage.
(7) Small Business Action (15 points): the entity's
workforce is composed of 3 or fewer full-time employees
(measured by full-time equivalents as defined by the
Government Accountability Office of the United States
Congress).
(8) Labor Peace Agreements Action (10 points): (i) for an
installer with 20 or more employees: the installer attests
that the installer has entered into a labor peace agreement,
will abide by the terms of the agreement, and will submit a

HB0804 Engrossed - 732 - LRB102 10881 SPS 16211 b
copy of the page of the labor peace agreement that contains the
signatures of the union representative and the installer, or
(ii) for an installer that is a party to a labor peace
agreement with a bona fide labor organization that currently
represents, or is actively seeking to represent electric
vehicle infrastructure and equipment installers and other
workers in Illinois, or (iii) the installer submits an
attestation affirming that the installer will use best efforts
to use union labor in the installer's projects and in the
construction or retrofit of the facilities associated with the
installer's electric vehicle infrastructure and equipment
operations, where applicable.
(9) Price of bid (130 points): as scored by utilities
awarding contracts to electric vehicle installers.
Bids scoring fewer than 135 points shall not be awarded
contracts.
(220 ILCS 5/16-108)
Sec. 16-108. Recovery of costs associated with the
provision of delivery and other services.
(a) An electric utility shall file a delivery services
tariff with the Commission at least 210 days prior to the date
that it is required to begin offering such services pursuant
to this Act. An electric utility shall provide the components
of delivery services that are subject to the jurisdiction of
the Federal Energy Regulatory Commission at the same prices,

HB0804 Engrossed - 733 - LRB102 10881 SPS 16211 b
terms and conditions set forth in its applicable tariff as
approved or allowed into effect by that Commission. The
Commission shall otherwise have the authority pursuant to
Article IX to review, approve, and modify the prices, terms
and conditions of those components of delivery services not
subject to the jurisdiction of the Federal Energy Regulatory
Commission, including the authority to determine the extent to
which such delivery services should be offered on an unbundled
basis. In making any such determination the Commission shall
consider, at a minimum, the effect of additional unbundling on
(i) the objective of just and reasonable rates, (ii) electric
utility employees, and (iii) the development of competitive
markets for electric energy services in Illinois.
(b) The Commission shall enter an order approving, or
approving as modified, the delivery services tariff no later
than 30 days prior to the date on which the electric utility
must commence offering such services. The Commission may
subsequently modify such tariff pursuant to this Act.
(c) The electric utility's tariffs shall define the
classes of its customers for purposes of delivery services
charges. Delivery services shall be priced and made available
to all retail customers electing delivery services in each
such class on a nondiscriminatory basis regardless of whether
the retail customer chooses the electric utility, an affiliate
of the electric utility, or another entity as its supplier of
electric power and energy. Charges for delivery services shall

HB0804 Engrossed - 734 - LRB102 10881 SPS 16211 b
be cost based, and shall allow the electric utility to recover
the costs of providing delivery services through its charges
to its delivery service customers that use the facilities and
services associated with such costs. Such costs shall include
the costs of owning, operating and maintaining transmission
and distribution facilities. The Commission shall also be
authorized to consider whether, and if so to what extent, the
following costs are appropriately included in the electric
utility's delivery services rates: (i) the costs of that
portion of generation facilities used for the production and
absorption of reactive power in order that retail customers
located in the electric utility's service area can receive
electric power and energy from suppliers other than the
electric utility, and (ii) the costs associated with the use
and redispatch of generation facilities to mitigate
constraints on the transmission or distribution system in
order that retail customers located in the electric utility's
service area can receive electric power and energy from
suppliers other than the electric utility. Nothing in this
subsection shall be construed as directing the Commission to
allocate any of the costs described in (i) or (ii) that are
found to be appropriately included in the electric utility's
delivery services rates to any particular customer group or
geographic area in setting delivery services rates.
(d) The Commission shall establish charges, terms and
conditions for delivery services that are just and reasonable

HB0804 Engrossed - 735 - LRB102 10881 SPS 16211 b
and shall take into account customer impacts when establishing
such charges. In establishing charges, terms and conditions
for delivery services, the Commission shall take into account
voltage level differences. A retail customer shall have the
option to request to purchase electric service at any delivery
service voltage reasonably and technically feasible from the
electric facilities serving that customer's premises provided
that there are no significant adverse impacts upon system
reliability or system efficiency. A retail customer shall also
have the option to request to purchase electric service at any
point of delivery that is reasonably and technically feasible
provided that there are no significant adverse impacts on
system reliability or efficiency. Such requests shall not be
unreasonably denied.
(e) Electric utilities shall recover the costs of
installing, operating or maintaining facilities for the
particular benefit of one or more delivery services customers,
including without limitation any costs incurred in complying
with a customer's request to be served at a different voltage
level, directly from the retail customer or customers for
whose benefit the costs were incurred, to the extent such
costs are not recovered through the charges referred to in
subsections (c) and (d) of this Section.
(f) An electric utility shall be entitled but not required
to implement transition charges in conjunction with the
offering of delivery services pursuant to Section 16-104. If

HB0804 Engrossed - 736 - LRB102 10881 SPS 16211 b
an electric utility implements transition charges, it shall
implement such charges for all delivery services customers and
for all customers described in subsection (h), but shall not
implement transition charges for power and energy that a
retail customer takes from cogeneration or self-generation
facilities located on that retail customer's premises, if such
facilities meet the following criteria:
(i) the cogeneration or self-generation facilities
serve a single retail customer and are located on that
retail customer's premises (for purposes of this
subparagraph and subparagraph (ii), an industrial or
manufacturing retail customer and a third party contractor
that is served by such industrial or manufacturing
customer through such retail customer's own electrical
distribution facilities under the circumstances described
in subsection (vi) of the definition of "alternative
retail electric supplier" set forth in Section 16-102,
shall be considered a single retail customer);
(ii) the cogeneration or self-generation facilities
either (A) are sized pursuant to generally accepted
engineering standards for the retail customer's electrical
load at that premises (taking into account standby or
other reliability considerations related to that retail
customer's operations at that site) or (B) if the facility
is a cogeneration facility located on the retail
customer's premises, the retail customer is the thermal

HB0804 Engrossed - 737 - LRB102 10881 SPS 16211 b
host for that facility and the facility has been designed
to meet that retail customer's thermal energy requirements
resulting in electrical output beyond that retail
customer's electrical demand at that premises, comply with
the operating and efficiency standards applicable to
"qualifying facilities" specified in title 18 Code of
Federal Regulations Section 292.205 as in effect on the
effective date of this amendatory Act of 1999;
(iii) the retail customer on whose premises the
facilities are located either has an exclusive right to
receive, and corresponding obligation to pay for, all of
the electrical capacity of the facility, or in the case of
a cogeneration facility that has been designed to meet the
retail customer's thermal energy requirements at that
premises, an identified amount of the electrical capacity
of the facility, over a minimum 5-year period; and
(iv) if the cogeneration facility is sized for the
retail customer's thermal load at that premises but
exceeds the electrical load, any sales of excess power or
energy are made only at wholesale, are subject to the
jurisdiction of the Federal Energy Regulatory Commission,
and are not for the purpose of circumventing the
provisions of this subsection (f).
If a generation facility located at a retail customer's
premises does not meet the above criteria, an electric utility
implementing transition charges shall implement a transition

HB0804 Engrossed - 738 - LRB102 10881 SPS 16211 b
charge until December 31, 2006 for any power and energy taken
by such retail customer from such facility as if such power and
energy had been delivered by the electric utility. Provided,
however, that an industrial retail customer that is taking
power from a generation facility that does not meet the above
criteria but that is located on such customer's premises will
not be subject to a transition charge for the power and energy
taken by such retail customer from such generation facility if
the facility does not serve any other retail customer and
either was installed on behalf of the customer and for its own
use prior to January 1, 1997, or is both predominantly fueled
by byproducts of such customer's manufacturing process at such
premises and sells or offers an average of 300 megawatts or
more of electricity produced from such generation facility
into the wholesale market. Such charges shall be calculated as
provided in Section 16-102, and shall be collected on each
kilowatt-hour delivered under a delivery services tariff to a
retail customer from the date the customer first takes
delivery services until December 31, 2006 except as provided
in subsection (h) of this Section. Provided, however, that an
electric utility, other than an electric utility providing
service to at least 1,000,000 customers in this State on
January 1, 1999, shall be entitled to petition for entry of an
order by the Commission authorizing the electric utility to
implement transition charges for an additional period ending
no later than December 31, 2008. The electric utility shall

HB0804 Engrossed - 739 - LRB102 10881 SPS 16211 b
file its petition with supporting evidence no earlier than 16
months, and no later than 12 months, prior to December 31,
2006. The Commission shall hold a hearing on the electric
utility's petition and shall enter its order no later than 8
months after the petition is filed. The Commission shall
determine whether and to what extent the electric utility
shall be authorized to implement transition charges for an
additional period. The Commission may authorize the electric
utility to implement transition charges for some or all of the
additional period, and shall determine the mitigation factors
to be used in implementing such transition charges; provided,
that the Commission shall not authorize mitigation factors
less than 110% of those in effect during the 12 months ended
December 31, 2006. In making its determination, the Commission
shall consider the following factors: the necessity to
implement transition charges for an additional period in order
to maintain the financial integrity of the electric utility;
the prudence of the electric utility's actions in reducing its
costs since the effective date of this amendatory Act of 1997;
the ability of the electric utility to provide safe, adequate
and reliable service to retail customers in its service area;
and the impact on competition of allowing the electric utility
to implement transition charges for the additional period.
(g) The electric utility shall file tariffs that establish
the transition charges to be paid by each class of customers to
the electric utility in conjunction with the provision of

HB0804 Engrossed - 740 - LRB102 10881 SPS 16211 b
delivery services. The electric utility's tariffs shall define
the classes of its customers for purposes of calculating
transition charges. The electric utility's tariffs shall
provide for the calculation of transition charges on a
customer-specific basis for any retail customer whose average
monthly maximum electrical demand on the electric utility's
system during the 6 months with the customer's highest monthly
maximum electrical demands equals or exceeds 3.0 megawatts for
electric utilities having more than 1,000,000 customers, and
for other electric utilities for any customer that has an
average monthly maximum electrical demand on the electric
utility's system of one megawatt or more, and (A) for which
there exists data on the customer's usage during the 3 years
preceding the date that the customer became eligible to take
delivery services, or (B) for which there does not exist data
on the customer's usage during the 3 years preceding the date
that the customer became eligible to take delivery services,
if in the electric utility's reasonable judgment there exists
comparable usage information or a sufficient basis to develop
such information, and further provided that the electric
utility can require customers for which an individual
calculation is made to sign contracts that set forth the
transition charges to be paid by the customer to the electric
utility pursuant to the tariff.
(h) An electric utility shall also be entitled to file
tariffs that allow it to collect transition charges from

HB0804 Engrossed - 741 - LRB102 10881 SPS 16211 b
retail customers in the electric utility's service area that
do not take delivery services but that take electric power or
energy from an alternative retail electric supplier or from an
electric utility other than the electric utility in whose
service area the customer is located. Such charges shall be
calculated, in accordance with the definition of transition
charges in Section 16-102, for the period of time that the
customer would be obligated to pay transition charges if it
were taking delivery services, except that no deduction for
delivery services revenues shall be made in such calculation,
and usage data from the customer's class shall be used where
historical usage data is not available for the individual
customer. The customer shall be obligated to pay such charges
on a lump sum basis on or before the date on which the customer
commences to take service from the alternative retail electric
supplier or other electric utility, provided, that the
electric utility in whose service area the customer is located
shall offer the customer the option of signing a contract
pursuant to which the customer pays such charges ratably over
the period in which the charges would otherwise have applied.
(i) An electric utility shall be entitled to add to the
bills of delivery services customers charges pursuant to
Sections 9-221, 9-222 (except as provided in Section 9-222.1),
and Section 16-114 of this Act, Section 5-5 of the Electricity
Infrastructure Maintenance Fee Law, Section 6-5 of the
Renewable Energy, Energy Efficiency, and Coal Resources

HB0804 Engrossed - 742 - LRB102 10881 SPS 16211 b
Development Law of 1997, and Section 13 of the Energy
Assistance Act.
(j) If a retail customer that obtains electric power and
energy from cogeneration or self-generation facilities
installed for its own use on or before January 1, 1997,
subsequently takes service from an alternative retail electric
supplier or an electric utility other than the electric
utility in whose service area the customer is located for any
portion of the customer's electric power and energy
requirements formerly obtained from those facilities
(including that amount purchased from the utility in lieu of
such generation and not as standby power purchases, under a
cogeneration displacement tariff in effect as of the effective
date of this amendatory Act of 1997), the transition charges
otherwise applicable pursuant to subsections (f), (g), or (h)
of this Section shall not be applicable in any year to that
portion of the customer's electric power and energy
requirements formerly obtained from those facilities,
provided, that for purposes of this subsection (j), such
portion shall not exceed the average number of kilowatt-hours
per year obtained from the cogeneration or self-generation
facilities during the 3 years prior to the date on which the
customer became eligible for delivery services, except as
provided in subsection (f) of Section 16-110.
(k) The electric utility shall be entitled to recover
through tariffed charges all of the costs associated with the

HB0804 Engrossed - 743 - LRB102 10881 SPS 16211 b
purchase of zero emission credits from zero emission
facilities to meet the requirements of subsection (d-5) of
Section 1-75 of the Illinois Power Agency Act. Such costs
shall include the costs of procuring the zero emission
credits, as well as the reasonable costs that the utility
incurs as part of the procurement processes and to implement
and comply with plans and processes approved by the Commission
under such subsection (d-5). The costs shall be allocated
across all retail customers through a single, uniform cents
per kilowatt-hour charge applicable to all retail customers,
which shall appear as a separate line item on each customer's
bill. Beginning June 1, 2017, the electric utility shall be
entitled to recover through tariffed charges all of the costs
associated with the purchase of renewable energy resources to
meet the long-term goals and targets of the renewable energy
resource standards of subsection (c) of Section 1-75 of the
Illinois Power Agency Act, under procurement plans as approved
in accordance with that Section and Section 16-111.5 of this
Act. Such costs shall include the costs of procuring the
renewable energy resources, as well as the reasonable costs
that the utility incurs as part of the procurement processes
and to implement and comply with plans and processes approved
by the Commission under such Sections. The costs associated
with the purchase of renewable energy resources shall be
allocated across all retail customers in proportion to the
amount of renewable energy resources the utility procures for

HB0804 Engrossed - 744 - LRB102 10881 SPS 16211 b
such customers through a single, uniform cents per
kilowatt-hour charge applicable to such retail customers,
which shall appear as a separate line item on each such
customer's bill.
Notwithstanding whether the Commission has approved the
initial long-term renewable resources procurement plan as of
June 1, 2017, an electric utility shall place new tariffed
charges into effect beginning with the June 2017 monthly
billing period, to the extent practicable, to begin recovering
the costs of procuring renewable energy resources, as those
charges are calculated under the limitations described in
subparagraph (E) of paragraph (1) of subsection (c) of Section
1-75 of the Illinois Power Agency Act. Notwithstanding the
date on which the utility places such new tariffed charges
into effect, the utility shall be permitted to collect the
charges under such tariff as if the tariff had been in effect
beginning with the first day of the June 2017 monthly billing
period. Money collected from customers for the procurement of
renewable energy resources in a given delivery may be spent by
the utility for the procurement of renewable resources over
any of the following 5 delivery years, after which money shall
be credited back to retail customers, provided that up to
$170,000,000 of funds collected, but not used, in a given
delivery year are first made available to the Illinois Solar
for All Program established under subsection (b) of Section
1-56 of the Illinois Power Agency Act to cover budget

HB0804 Engrossed - 745 - LRB102 10881 SPS 16211 b
shortfalls due to unexpected fluctuations in the amount of
money available to that Program from the Illinois Power Agency
Renewable Energy Resources Fund. The electric utility shall
spend all money collected in earlier delivery years that has
not yet been returned to customers, first, before spending
money collected in later delivery years. The For the delivery
years commencing June 1, 2017, June 1, 2018, and June 1, 2019,
the electric utility shall deposit into a separate interest
bearing account of a financial institution the monies
collected under the tariffed charges. Any interest earned
shall be credited back to retail customers under the
reconciliation proceeding provided for in this subsection (k),
provided that the electric utility shall first be reimbursed
from the interest for the administrative costs that it incurs
to administer and manage the account. Any taxes due on the
funds in the account, or interest earned on it, will be paid
from the account or, if insufficient monies are available in
the account, from the monies collected under the tariffed
charges to recover the costs of procuring renewable energy
resources. Monies deposited in the account shall be subject to
the review, reconciliation, and true-up process described in
this subsection (k) that is applicable to the funds collected
and costs incurred for the procurement of renewable energy
resources.
The electric utility shall be entitled to recover all of
the costs identified in this subsection (k) through automatic

HB0804 Engrossed - 746 - LRB102 10881 SPS 16211 b
adjustment clause tariffs applicable to all of the utility's
retail customers that allow the electric utility to adjust its
tariffed charges consistent with this subsection (k). The
determination as to whether any excess funds were collected
during a given delivery year for the purchase of renewable
energy resources, and the crediting of any excess funds back
to retail customers, shall not be made until after the close of
the delivery year, which will ensure that the maximum amount
of funds is available to implement the approved long-term
renewable resources procurement plan during a given delivery
year. The electric utility's collections under such automatic
adjustment clause tariffs to recover the costs of renewable
energy resources and zero emission credits from zero emission
facilities shall be subject to separate annual review,
reconciliation, and true-up against actual costs by the
Commission under a procedure that shall be specified in the
electric utility's automatic adjustment clause tariffs and
that shall be approved by the Commission in connection with
its approval of such tariffs. The procedure shall provide that
any difference between the electric utility's collections for
zero emission credits under the automatic adjustment charges
for an annual period and the electric utility's actual costs
of renewable energy resources and zero emission credits from
zero emission facilities for that same annual period shall be
refunded to or collected from, as applicable, the electric
utility's retail customers in subsequent periods.

HB0804 Engrossed - 747 - LRB102 10881 SPS 16211 b
Nothing in this subsection (k) is intended to affect,
limit, or change the right of the electric utility to recover
the costs associated with the procurement of renewable energy
resources for periods commencing before, on, or after June 1,
2017, as otherwise provided in the Illinois Power Agency Act.
Notwithstanding anything to the contrary, the Commission
shall not conduct an annual review, reconciliation, and
true-up associated with renewable energy resources'
collections and costs for the delivery years commencing June
1, 2017, June 1, 2018, June 1, 2019, and June 1, 2020, and
shall instead conduct a single review, reconciliation, and
true-up associated with renewable energy resources'
collections and costs for the 4-year period beginning June 1,
2017 and ending May 31, 2021, provided that the review,
reconciliation, and true-up shall not be initiated until after
August 31, 2021. During the 4-year period, the utility shall
be permitted to collect and retain funds under this subsection
(k) and to purchase renewable energy resources under an
approved long-term renewable resources procurement plan using
those funds regardless of the delivery year in which the funds
were collected during the 4-year period.
If the amount of funds collected during the delivery year
commencing June 1, 2017, exceeds the costs incurred during
that delivery year, then up to half of this excess amount, as
calculated on June 1, 2018, may be used to fund the programs
under subsection (b) of Section 1-56 of the Illinois Power

HB0804 Engrossed - 748 - LRB102 10881 SPS 16211 b
Agency Act in the same proportion the programs are funded
under that subsection (b). However, any amount identified
under this subsection (k) to fund programs under subsection
(b) of Section 1-56 of the Illinois Power Agency Act shall be
reduced if it exceeds the funding shortfall. For purposes of
this Section, "funding shortfall" means the difference between
$200,000,000 and the amount appropriated by the General
Assembly to the Illinois Power Agency Renewable Energy
Resources Fund during the period that commences on the
effective date of this amendatory act of the 99th General
Assembly and ends on August 1, 2018.
If the amount of funds collected during the delivery year
commencing June 1, 2018, exceeds the costs incurred during
that delivery year, then up to half of this excess amount, as
calculated on June 1, 2019, may be used to fund the programs
under subsection (b) of Section 1-56 of the Illinois Power
Agency Act in the same proportion the programs are funded
under that subsection (b). However, any amount identified
under this subsection (k) to fund programs under subsection
(b) of Section 1-56 of the Illinois Power Agency Act shall be
reduced if it exceeds the funding shortfall.
If the amount of funds collected during the delivery year
commencing June 1, 2019, exceeds the costs incurred during
that delivery year, then up to half of this excess amount, as
calculated on June 1, 2020, may be used to fund the programs
under subsection (b) of Section 1-56 of the Illinois Power

HB0804 Engrossed - 749 - LRB102 10881 SPS 16211 b
Agency Act in the same proportion the programs are funded
under that subsection (b). However, any amount identified
under this subsection (k) to fund programs under subsection
(b) of Section 1-56 of the Illinois Power Agency Act shall be
reduced if it exceeds the funding shortfall.
The funding available under this subsection (k), if any,
for the programs described under subsection (b) of Section
1-56 of the Illinois Power Agency Act shall not reduce the
amount of funding for the programs described in subparagraph
(O) of paragraph (1) of subsection (c) of Section 1-75 of the
Illinois Power Agency Act. If funding is available under this
subsection (k) for programs described under subsection (b) of
Section 1-56 of the Illinois Power Agency Act, then the
long-term renewable resources plan shall provide for the
Agency to procure contracts in an amount that does not exceed
the funding, and the contracts approved by the Commission
shall be executed by the applicable utility or utilities.
(l) A utility that has terminated any contract executed
under subsection (d-5) of Section 1-75 of the Illinois Power
Agency Act shall be entitled to recover any remaining balance
associated with the purchase of zero emission credits prior to
such termination, and such utility shall also apply a credit
to its retail customer bills in the event of any
over-collection.
(m)(1) An electric utility that recovers its costs of
procuring zero emission credits from zero emission

HB0804 Engrossed - 750 - LRB102 10881 SPS 16211 b
facilities through a cents-per-kilowatthour charge under
to subsection (k) of this Section shall be subject to the
requirements of this subsection (m). Notwithstanding
anything to the contrary, such electric utility shall,
beginning on April 30, 2018, and each April 30 thereafter
until April 30, 2026, calculate whether any reduction must
be applied to such cents-per-kilowatthour charge that is
paid by retail customers of the electric utility that are
exempt from subsections (a) through (j) of Section 8-103B
of this Act under subsection (l) of Section 8-103B. Such
charge shall be reduced for such customers for the next
delivery year commencing on June 1 based on the amount
necessary, if any, to limit the annual estimated average
net increase for the prior calendar year due to the future
energy investment costs to no more than 1.3% of 5.98 cents
per kilowatt-hour, which is the average amount paid per
kilowatthour for electric service during the year ending
December 31, 2015 by Illinois industrial retail customers,
as reported to the Edison Electric Institute.
The calculations required by this subsection (m) shall
be made only once for each year, and no subsequent rate
impact determinations shall be made.
(2) For purposes of this Section, "future energy
investment costs" shall be calculated by subtracting the
cents-per-kilowatthour charge identified in subparagraph
(A) of this paragraph (2) from the sum of the

HB0804 Engrossed - 751 - LRB102 10881 SPS 16211 b
cents-per-kilowatthour charges identified in subparagraph
(B) of this paragraph (2):
(A) The cents-per-kilowatthour charge identified
in the electric utility's tariff placed into effect
under Section 8-103 of the Public Utilities Act that,
on December 1, 2016, was applicable to those retail
customers that are exempt from subsections (a) through
(j) of Section 8-103B of this Act under subsection (l)
of Section 8-103B.
(B) The sum of the following
cents-per-kilowatthour charges applicable to those
retail customers that are exempt from subsections (a)
through (j) of Section 8-103B of this Act under
subsection (l) of Section 8-103B, provided that if one
or more of the following charges has been in effect and
applied to such customers for more than one calendar
year, then each charge shall be equal to the average of
the charges applied over a period that commences with
the calendar year ending December 31, 2017 and ends
with the most recently completed calendar year prior
to the calculation required by this subsection (m):
(i) the cents-per-kilowatthour charge to
recover the costs incurred by the utility under
subsection (d-5) of Section 1-75 of the Illinois
Power Agency Act, adjusted for any reductions
required under this subsection (m); and

HB0804 Engrossed - 752 - LRB102 10881 SPS 16211 b
(ii) the cents-per-kilowatthour charge to
recover the costs incurred by the utility under
Section 16-107.6 of the Public Utilities Act.
If no charge was applied for a given calendar year
under item (i) or (ii) of this subparagraph (B), then
the value of the charge for that year shall be zero.
(3) If a reduction is required by the calculation
performed under this subsection (m), then the amount of
the reduction shall be multiplied by the number of years
reflected in the averages calculated under subparagraph
(B) of paragraph (2) of this subsection (m). Such
reduction shall be applied to the cents-per-kilowatthour
charge that is applicable to those retail customers that
are exempt from subsections (a) through (j) of Section
8-103B of this Act under subsection (l) of Section 8-103B
beginning with the next delivery year commencing after the
date of the calculation required by this subsection (m).
(4) The electric utility shall file a notice with the
Commission on May 1 of 2018 and each May 1 thereafter until
May 1, 2026 containing the reduction, if any, which must
be applied for the delivery year which begins in the year
of the filing. The notice shall contain the calculations
made pursuant to this Section. By October 1 of each year
beginning in 2018, each electric utility shall notify the
Commission if it appears, based on an estimate of the
calculation required in this subsection (m), that a

HB0804 Engrossed - 753 - LRB102 10881 SPS 16211 b
reduction will be required in the next year.
(Source: P.A. 99-906, eff. 6-1-17.)
(220 ILCS 5/16-108.5)
Sec. 16-108.5. Infrastructure investment and
modernization; regulatory reform.
(a) (Blank).
(b) For purposes of this Section, "participating utility"
means an electric utility or a combination utility serving
more than 1,000,000 customers in Illinois that voluntarily
elects and commits to undertake (i) the infrastructure
investment program consisting of the commitments and
obligations described in this subsection (b) and (ii) the
customer assistance program consisting of the commitments and
obligations described in subsection (b-10) of this Section,
notwithstanding any other provisions of this Act and without
obtaining any approvals from the Commission or any other
agency other than as set forth in this Section, regardless of
whether any such approval would otherwise be required.
"Combination utility" means a utility that, as of January 1,
2011, provided electric service to at least one million retail
customers in Illinois and gas service to at least 500,000
retail customers in Illinois. A participating utility shall
recover the expenditures made under the infrastructure
investment program through the ratemaking process, including,
but not limited to, the performance-based formula rate and

HB0804 Engrossed - 754 - LRB102 10881 SPS 16211 b
process set forth in this Section.
During the infrastructure investment program's peak
program year, a participating utility other than a combination
utility shall create 2,000 full-time equivalent jobs in
Illinois, and a participating utility that is a combination
utility shall create 450 full-time equivalent jobs in Illinois
related to the provision of electric service. These jobs shall
include direct jobs, contractor positions, and induced jobs,
but shall not include any portion of a job commitment, not
specifically contingent on an amendatory Act of the 97th
General Assembly becoming law, between a participating utility
and a labor union that existed on December 30, 2011 (the
effective date of Public Act 97-646) and that has not yet been
fulfilled. A portion of the full-time equivalent jobs created
by each participating utility shall include incremental
personnel hired subsequent to December 30, 2011 (the effective
date of Public Act 97-646). For purposes of this Section,
"peak program year" means the consecutive 12-month period with
the highest number of full-time equivalent jobs that occurs
between the beginning of investment year 2 and the end of
investment year 4.
A participating utility shall meet one of the following
commitments, as applicable:
(1) Beginning no later than 180 days after a
participating utility other than a combination utility
files a performance-based formula rate tariff pursuant to

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subsection (c) of this Section, or, beginning no later
than January 1, 2012 if such utility files such
performance-based formula rate tariff within 14 days of
October 26, 2011 (the effective date of Public Act
97-616), the participating utility shall, except as
provided in subsection (b-5):
(A) over a 5-year period, invest an estimated
$1,300,000,000 in electric system upgrades,
modernization projects, and training facilities,
including, but not limited to:
(i) distribution infrastructure improvements
totaling an estimated $1,000,000,000, including
underground residential distribution cable
injection and replacement and mainline cable
system refurbishment and replacement projects;
(ii) training facility construction or upgrade
projects totaling an estimated $10,000,000,
provided that, at a minimum, one such facility
shall be located in a municipality having a
population of more than 2 million residents and
one such facility shall be located in a
municipality having a population of more than
150,000 residents but fewer than 170,000
residents; any such new facility located in a
municipality having a population of more than 2
million residents must be designed for the purpose

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of obtaining, and the owner of the facility shall
apply for, certification under the United States
Green Building Council's Leadership in Energy
Efficiency Design Green Building Rating System;
(iii) wood pole inspection, treatment, and
replacement programs;
(iv) an estimated $200,000,000 for reducing
the susceptibility of certain circuits to
storm-related damage, including, but not limited
to, high winds, thunderstorms, and ice storms;
improvements may include, but are not limited to,
overhead to underground conversion and other
engineered outcomes for circuits; the
participating utility shall prioritize the
selection of circuits based on each circuit's
historical susceptibility to storm-related damage
and the ability to provide the greatest customer
benefit upon completion of the improvements; to be
eligible for improvement, the participating
utility's ability to maintain proper tree
clearances surrounding the overhead circuit must
not have been impeded by third parties; and
(B) over a 10-year period, invest an estimated
$1,300,000,000 to upgrade and modernize its
transmission and distribution infrastructure and in
Smart Grid electric system upgrades, including, but

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not limited to:
(i) additional smart meters;
(ii) distribution automation;
(iii) associated cyber secure data
communication network; and
(iv) substation micro-processor relay
upgrades.
(2) Beginning no later than 180 days after a
participating utility that is a combination utility files
a performance-based formula rate tariff pursuant to
subsection (c) of this Section, or, beginning no later
than January 1, 2012 if such utility files such
performance-based formula rate tariff within 14 days of
October 26, 2011 (the effective date of Public Act
97-616), the participating utility shall, except as
provided in subsection (b-5):
(A) over a 10-year period, invest an estimated
$265,000,000 in electric system upgrades,
modernization projects, and training facilities,
including, but not limited to:
(i) distribution infrastructure improvements
totaling an estimated $245,000,000, which may
include bulk supply substations, transformers,
reconductoring, and rebuilding overhead
distribution and sub-transmission lines,
underground residential distribution cable

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injection and replacement and mainline cable
system refurbishment and replacement projects;
(ii) training facility construction or upgrade
projects totaling an estimated $1,000,000; any
such new facility must be designed for the purpose
of obtaining, and the owner of the facility shall
apply for, certification under the United States
Green Building Council's Leadership in Energy
Efficiency Design Green Building Rating System;
and
(iii) wood pole inspection, treatment, and
replacement programs; and
(B) over a 10-year period, invest an estimated
$360,000,000 to upgrade and modernize its transmission
and distribution infrastructure and in Smart Grid
electric system upgrades, including, but not limited
to:
(i) additional smart meters;
(ii) distribution automation;
(iii) associated cyber secure data
communication network; and
(iv) substation micro-processor relay
upgrades.
For purposes of this Section, "Smart Grid electric system
upgrades" shall have the meaning set forth in subsection (a)
of Section 16-108.6 of this Act.

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The investments in the infrastructure investment program
described in this subsection (b) shall be incremental to the
participating utility's annual capital investment program, as
defined by, for purposes of this subsection (b), the
participating utility's average capital spend for calendar
years 2008, 2009, and 2010 as reported in the applicable
Federal Energy Regulatory Commission (FERC) Form 1; provided
that where one or more utilities have merged, the average
capital spend shall be determined using the aggregate of the
merged utilities' capital spend reported in FERC Form 1 for
the years 2008, 2009, and 2010. A participating utility may
add reasonable construction ramp-up and ramp-down time to the
investment periods specified in this subsection (b). For each
such investment period, the ramp-up and ramp-down time shall
not exceed a total of 6 months.
Within 60 days after filing a tariff under subsection (c)
of this Section, a participating utility shall submit to the
Commission its plan, including scope, schedule, and staffing,
for satisfying its infrastructure investment program
commitments pursuant to this subsection (b). The submitted
plan shall include a schedule and staffing plan for the next
calendar year. The plan shall also include a plan for the
creation, operation, and administration of a Smart Grid test
bed as described in subsection (c) of Section 16-108.8. The
plan need not allocate the work equally over the respective
periods, but should allocate material increments throughout

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such periods commensurate with the work to be undertaken. No
later than April 1 of each subsequent year, the utility shall
submit to the Commission a report that includes any updates to
the plan, a schedule for the next calendar year, the
expenditures made for the prior calendar year and
cumulatively, and the number of full-time equivalent jobs
created for the prior calendar year and cumulatively. If the
utility is materially deficient in satisfying a schedule or
staffing plan, then the report must also include a corrective
action plan to address the deficiency. The fact that the plan,
implementation of the plan, or a schedule changes shall not
imply the imprudence or unreasonableness of the infrastructure
investment program, plan, or schedule. Further, no later than
45 days following the last day of the first, second, and third
quarters of each year of the plan, a participating utility
shall submit to the Commission a verified quarterly report for
the prior quarter that includes (i) the total number of
full-time equivalent jobs created during the prior quarter,
(ii) the total number of employees as of the last day of the
prior quarter, (iii) the total number of full-time equivalent
hours in each job classification or job title, (iv) the total
number of incremental employees and contractors in support of
the investments undertaken pursuant to this subsection (b) for
the prior quarter, and (v) any other information that the
Commission may require by rule.
With respect to the participating utility's peak job

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commitment, if, after considering the utility's corrective
action plan and compliance thereunder, the Commission enters
an order finding, after notice and hearing, that a
participating utility did not satisfy its peak job commitment
described in this subsection (b) for reasons that are
reasonably within its control, then the Commission shall also
determine, after consideration of the evidence, including, but
not limited to, evidence submitted by the Department of
Commerce and Economic Opportunity and the utility, the
deficiency in the number of full-time equivalent jobs during
the peak program year due to such failure. The Commission
shall notify the Department of any proceeding that is
initiated pursuant to this paragraph. For each full-time
equivalent job deficiency during the peak program year that
the Commission finds as set forth in this paragraph, the
participating utility shall, within 30 days after the entry of
the Commission's order, pay $6,000 to a fund for training
grants administered under Section 605-800 of the Department of
Commerce and Economic Opportunity Law, which shall not be a
recoverable expense.
With respect to the participating utility's investment
amount commitments, if, after considering the utility's
corrective action plan and compliance thereunder, the
Commission enters an order finding, after notice and hearing,
that a participating utility is not satisfying its investment
amount commitments described in this subsection (b), then the

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utility shall no longer be eligible to annually update the
performance-based formula rate tariff pursuant to subsection
(d) of this Section. In such event, the then current rates
shall remain in effect until such time as new rates are set
pursuant to Article IX of this Act, subject to retroactive
adjustment, with interest, to reconcile rates charged with
actual costs.
If the Commission finds that a participating utility is no
longer eligible to update the performance-based formula rate
tariff pursuant to subsection (d) of this Section, or the
performance-based formula rate is otherwise terminated, then
the participating utility's voluntary commitments and
obligations under this subsection (b) shall immediately
terminate, except for the utility's obligation to pay an
amount already owed to the fund for training grants pursuant
to a Commission order.
In meeting the obligations of this subsection (b), to the
extent feasible and consistent with State and federal law, the
investments under the infrastructure investment program should
provide employment opportunities for all segments of the
population and workforce, including black, indigenous, and
people of color-owned and women-owned minority-owned and
female-owned business enterprises, and shall not, consistent
with State and federal law, discriminate based on race or
socioeconomic status.
(b-5) Nothing in this Section shall prohibit the

HB0804 Engrossed - 763 - LRB102 10881 SPS 16211 b
Commission from investigating the prudence and reasonableness
of the expenditures made under the infrastructure investment
program during the annual review required by subsection (d) of
this Section and shall, as part of such investigation,
determine whether the utility's actual costs under the program
are prudent and reasonable. The fact that a participating
utility invests more than the minimum amounts specified in
subsection (b) of this Section or its plan shall not imply
imprudence or unreasonableness.
If the participating utility finds that it is implementing
its plan for satisfying the infrastructure investment program
commitments described in subsection (b) of this Section at a
cost below the estimated amounts specified in subsection (b)
of this Section, then the utility may file a petition with the
Commission requesting that it be permitted to satisfy its
commitments by spending less than the estimated amounts
specified in subsection (b) of this Section. The Commission
shall, after notice and hearing, enter its order approving, or
approving as modified, or denying each such petition within
150 days after the filing of the petition.
In no event, absent General Assembly approval, shall the
capital investment costs incurred by a participating utility
other than a combination utility in satisfying its
infrastructure investment program commitments described in
subsection (b) of this Section exceed $3,000,000,000 or, for a
participating utility that is a combination utility,

HB0804 Engrossed - 764 - LRB102 10881 SPS 16211 b
$720,000,000. If the participating utility's updated cost
estimates for satisfying its infrastructure investment program
commitments described in subsection (b) of this Section exceed
the limitation imposed by this subsection (b-5), then it shall
submit a report to the Commission that identifies the
increased costs and explains the reason or reasons for the
increased costs no later than the year in which the utility
estimates it will exceed the limitation. The Commission shall
review the report and shall, within 90 days after the
participating utility files the report, report to the General
Assembly its findings regarding the participating utility's
report. If the General Assembly does not amend the limitation
imposed by this subsection (b-5), then the utility may modify
its plan so as not to exceed the limitation imposed by this
subsection (b-5) and may propose corresponding changes to the
metrics established pursuant to subparagraphs (5) through (8)
of subsection (f) of this Section, and the Commission may
modify the metrics and incremental savings goals established
pursuant to subsection (f) of this Section accordingly.
(b-10) All participating utilities shall make
contributions for an energy low-income and support program in
accordance with this subsection. Beginning no later than 180
days after a participating utility files a performance-based
formula rate tariff pursuant to subsection (c) of this
Section, or beginning no later than January 1, 2012 if such
utility files such performance-based formula rate tariff

HB0804 Engrossed - 765 - LRB102 10881 SPS 16211 b
within 14 days of December 30, 2011 (the effective date of
Public Act 97-646), and without obtaining any approvals from
the Commission or any other agency other than as set forth in
this Section, regardless of whether any such approval would
otherwise be required, a participating utility other than a
combination utility shall pay $10,000,000 per year for 5 years
and a participating utility that is a combination utility
shall pay $1,000,000 per year for 10 years to the energy
low-income and support program, which is intended to fund
customer assistance programs with the primary purpose being
avoidance of imminent disconnection. Such programs may
include:
(1) a residential hardship program that may partner
with community-based organizations, including senior
citizen organizations, and provides grants to low-income
residential customers, including low-income senior
citizens, who demonstrate a hardship;
(2) a program that provides grants and other bill
payment concessions to veterans with disabilities who
demonstrate a hardship and members of the armed services
or reserve forces of the United States or members of the
Illinois National Guard who are on active duty pursuant to
an executive order of the President of the United States,
an act of the Congress of the United States, or an order of
the Governor and who demonstrate a hardship;
(3) a budget assistance program that provides tools

HB0804 Engrossed - 766 - LRB102 10881 SPS 16211 b
and education to low-income senior citizens to assist them
with obtaining information regarding energy usage and
effective means of managing energy costs;
(4) a non-residential special hardship program that
provides grants to non-residential customers such as small
businesses and non-profit organizations that demonstrate a
hardship, including those providing services to senior
citizen and low-income customers; and
(5) a performance-based assistance program that
provides grants to encourage residential customers to make
on-time payments by matching a portion of the customer's
payments or providing credits towards arrearages.
The payments made by a participating utility pursuant to
this subsection (b-10) shall not be a recoverable expense. A
participating utility may elect to fund either new or existing
customer assistance programs, including, but not limited to,
those that are administered by the utility.
Programs that use funds that are provided by a
participating utility to reduce utility bills may be
implemented through tariffs that are filed with and reviewed
by the Commission. If a utility elects to file tariffs with the
Commission to implement all or a portion of the programs,
those tariffs shall, regardless of the date actually filed, be
deemed accepted and approved, and shall become effective on
December 30, 2011 (the effective date of Public Act 97-646).
The participating utilities whose customers benefit from the

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funds that are disbursed as contemplated in this Section shall
file annual reports documenting the disbursement of those
funds with the Commission. The Commission has the authority to
audit disbursement of the funds to ensure they were disbursed
consistently with this Section.
If the Commission finds that a participating utility is no
longer eligible to update the performance-based formula rate
tariff pursuant to subsection (d) of this Section, or the
performance-based formula rate is otherwise terminated, then
the participating utility's voluntary commitments and
obligations under this subsection (b-10) shall immediately
terminate.
(c) A participating utility may elect to recover its
delivery services costs through a performance-based formula
rate approved by the Commission, which shall specify the cost
components that form the basis of the rate charged to
customers with sufficient specificity to operate in a
standardized manner and be updated annually with transparent
information that reflects the utility's actual costs to be
recovered during the applicable rate year, which is the period
beginning with the first billing day of January and extending
through the last billing day of the following December. In the
event the utility recovers a portion of its costs through
automatic adjustment clause tariffs on October 26, 2011 (the
effective date of Public Act 97-616), the utility may elect to
continue to recover these costs through such tariffs, but then

HB0804 Engrossed - 768 - LRB102 10881 SPS 16211 b
these costs shall not be recovered through the
performance-based formula rate. In the event the participating
utility, prior to December 30, 2011 (the effective date of
Public Act 97-646), filed electric delivery services tariffs
with the Commission pursuant to Section 9-201 of this Act that
are related to the recovery of its electric delivery services
costs that are still pending on December 30, 2011 (the
effective date of Public Act 97-646), the participating
utility shall, at the time it files its performance-based
formula rate tariff with the Commission, also file a notice of
withdrawal with the Commission to withdraw the electric
delivery services tariffs previously filed pursuant to Section
9-201 of this Act. Upon receipt of such notice, the Commission
shall dismiss with prejudice any docket that had been
initiated to investigate the electric delivery services
tariffs filed pursuant to Section 9-201 of this Act, and such
tariffs and the record related thereto shall not be the
subject of any further hearing, investigation, or proceeding
of any kind related to rates for electric delivery services.
The performance-based formula rate shall be implemented
through a tariff filed with the Commission consistent with the
provisions of this subsection (c) that shall be applicable to
all delivery services customers. The Commission shall initiate
and conduct an investigation of the tariff in a manner
consistent with the provisions of this subsection (c) and the
provisions of Article IX of this Act to the extent they do not

HB0804 Engrossed - 769 - LRB102 10881 SPS 16211 b
conflict with this subsection (c). Except in the case where
the Commission finds, after notice and hearing, that a
participating utility is not satisfying its investment amount
commitments under subsection (b) of this Section, the
performance-based formula rate shall remain in effect at the
discretion of the utility. The performance-based formula rate
approved by the Commission shall do the following:
(1) Provide for the recovery of the utility's actual
costs of delivery services that are prudently incurred and
reasonable in amount consistent with Commission practice
and law. The sole fact that a cost differs from that
incurred in a prior calendar year or that an investment is
different from that made in a prior calendar year shall
not imply the imprudence or unreasonableness of that cost
or investment.
(2) Reflect the utility's actual year-end capital
structure for the applicable calendar year, excluding
goodwill, subject to a determination of prudence and
reasonableness consistent with Commission practice and
law. To enable the financing of the incremental capital
expenditures, including regulatory assets, for electric
utilities that serve less than 3,000,000 retail customers
but more than 500,000 retail customers in the State, a
participating electric utility's actual year-end capital
structure that includes a common equity ratio, excluding
goodwill, of up to and including 50% of the total capital

HB0804 Engrossed - 770 - LRB102 10881 SPS 16211 b
structure shall be deemed reasonable and used to set
rates.
(3) Include a cost of equity, which shall be
calculated as the sum of the following:
(A) the average for the applicable calendar year
of the monthly average yields of 30-year U.S. Treasury
bonds published by the Board of Governors of the
Federal Reserve System in its weekly H.15 Statistical
Release or successor publication; and
(B) 580 basis points.
At such time as the Board of Governors of the Federal
Reserve System ceases to include the monthly average
yields of 30-year U.S. Treasury bonds in its weekly H.15
Statistical Release or successor publication, the monthly
average yields of the U.S. Treasury bonds then having the
longest duration published by the Board of Governors in
its weekly H.15 Statistical Release or successor
publication shall instead be used for purposes of this
paragraph (3).
(4) Permit and set forth protocols, subject to a
determination of prudence and reasonableness consistent
with Commission practice and law, for the following:
(A) recovery of incentive compensation expense
that is based on the achievement of operational
metrics, including metrics related to budget controls,
outage duration and frequency, safety, customer

HB0804 Engrossed - 771 - LRB102 10881 SPS 16211 b
service, efficiency and productivity, and
environmental compliance. Incentive compensation
expense that is based on net income or an affiliate's
earnings per share shall not be recoverable under the
performance-based formula rate;
(B) recovery of pension and other post-employment
benefits expense, provided that such costs are
supported by an actuarial study;
(C) recovery of severance costs, provided that if
the amount is over $3,700,000 for a participating
utility that is a combination utility or $10,000,000
for a participating utility that serves more than 3
million retail customers, then the full amount shall
be amortized consistent with subparagraph (F) of this
paragraph (4);
(D) investment return at a rate equal to the
utility's weighted average cost of long-term debt, on
the pension assets as, and in the amount, reported in
Account 186 (or in such other Account or Accounts as
such asset may subsequently be recorded) of the
utility's most recently filed FERC Form 1, net of
deferred tax benefits;
(E) recovery of the expenses related to the
Commission proceeding under this subsection (c) to
approve this performance-based formula rate and
initial rates or to subsequent proceedings related to

HB0804 Engrossed - 772 - LRB102 10881 SPS 16211 b
the formula, provided that the recovery shall be
amortized over a 3-year period; recovery of expenses
related to the annual Commission proceedings under
subsection (d) of this Section to review the inputs to
the performance-based formula rate shall be expensed
and recovered through the performance-based formula
rate;
(F) amortization over a 5-year period of the full
amount of each charge or credit that exceeds
$3,700,000 for a participating utility that is a
combination utility or $10,000,000 for a participating
utility that serves more than 3 million retail
customers in the applicable calendar year and that
relates to a workforce reduction program's severance
costs, changes in accounting rules, changes in law,
compliance with any Commission-initiated audit, or a
single storm or other similar expense, provided that
any unamortized balance shall be reflected in rate
base. For purposes of this subparagraph (F), changes
in law includes any enactment, repeal, or amendment in
a law, ordinance, rule, regulation, interpretation,
permit, license, consent, or order, including those
relating to taxes, accounting, or to environmental
matters, or in the interpretation or application
thereof by any governmental authority occurring after
October 26, 2011 (the effective date of Public Act

HB0804 Engrossed - 773 - LRB102 10881 SPS 16211 b
97-616);
(G) recovery of existing regulatory assets over
the periods previously authorized by the Commission;
(H) historical weather normalized billing
determinants; and
(I) allocation methods for common costs.
(5) Provide that if the participating utility's earned
rate of return on common equity related to the provision
of delivery services for the prior rate year (calculated
using costs and capital structure approved by the
Commission as provided in subparagraph (2) of this
subsection (c), consistent with this Section, in
accordance with Commission rules and orders, including,
but not limited to, adjustments for goodwill, and after
any Commission-ordered disallowances and taxes) is more
than 50 basis points higher than the rate of return on
common equity calculated pursuant to paragraph (3) of this
subsection (c) (after adjusting for any penalties to the
rate of return on common equity applied pursuant to the
performance metrics provision of subsection (f) of this
Section), then the participating utility shall apply a
credit through the performance-based formula rate that
reflects an amount equal to the value of that portion of
the earned rate of return on common equity that is more
than 50 basis points higher than the rate of return on
common equity calculated pursuant to paragraph (3) of this

HB0804 Engrossed - 774 - LRB102 10881 SPS 16211 b
subsection (c) (after adjusting for any penalties to the
rate of return on common equity applied pursuant to the
performance metrics provision of subsection (f) of this
Section) for the prior rate year, adjusted for taxes. If
the participating utility's earned rate of return on
common equity related to the provision of delivery
services for the prior rate year (calculated using costs
and capital structure approved by the Commission as
provided in subparagraph (2) of this subsection (c),
consistent with this Section, in accordance with
Commission rules and orders, including, but not limited
to, adjustments for goodwill, and after any
Commission-ordered disallowances and taxes) is more than
50 basis points less than the return on common equity
calculated pursuant to paragraph (3) of this subsection
(c) (after adjusting for any penalties to the rate of
return on common equity applied pursuant to the
performance metrics provision of subsection (f) of this
Section), then the participating utility shall apply a
charge through the performance-based formula rate that
reflects an amount equal to the value of that portion of
the earned rate of return on common equity that is more
than 50 basis points less than the rate of return on common
equity calculated pursuant to paragraph (3) of this
subsection (c) (after adjusting for any penalties to the
rate of return on common equity applied pursuant to the

HB0804 Engrossed - 775 - LRB102 10881 SPS 16211 b
performance metrics provision of subsection (f) of this
Section) for the prior rate year, adjusted for taxes.
(6) Provide for an annual reconciliation, as described
in subsection (d) of this Section, with interest, of the
revenue requirement reflected in rates for each calendar
year, beginning with the calendar year in which the
utility files its performance-based formula rate tariff
pursuant to subsection (c) of this Section, with what the
revenue requirement would have been had the actual cost
information for the applicable calendar year been
available at the filing date.
The utility shall file, together with its tariff, final
data based on its most recently filed FERC Form 1, plus
projected plant additions and correspondingly updated
depreciation reserve and expense for the calendar year in
which the tariff and data are filed, that shall populate the
performance-based formula rate and set the initial delivery
services rates under the formula. For purposes of this
Section, "FERC Form 1" means the Annual Report of Major
Electric Utilities, Licensees and Others that electric
utilities are required to file with the Federal Energy
Regulatory Commission under the Federal Power Act, Sections 3,
4(a), 304 and 209, modified as necessary to be consistent with
83 Ill. Admin. Code Part 415 as of May 1, 2011. Nothing in this
Section is intended to allow costs that are not otherwise
recoverable to be recoverable by virtue of inclusion in FERC

HB0804 Engrossed - 776 - LRB102 10881 SPS 16211 b
Form 1.
After the utility files its proposed performance-based
formula rate structure and protocols and initial rates, the
Commission shall initiate a docket to review the filing. The
Commission shall enter an order approving, or approving as
modified, the performance-based formula rate, including the
initial rates, as just and reasonable within 270 days after
the date on which the tariff was filed, or, if the tariff is
filed within 14 days after October 26, 2011 (the effective
date of Public Act 97-616), then by May 31, 2012. Such review
shall be based on the same evidentiary standards, including,
but not limited to, those concerning the prudence and
reasonableness of the costs incurred by the utility, the
Commission applies in a hearing to review a filing for a
general increase in rates under Article IX of this Act. The
initial rates shall take effect within 30 days after the
Commission's order approving the performance-based formula
rate tariff.
Until such time as the Commission approves a different
rate design and cost allocation pursuant to subsection (e) of
this Section, rate design and cost allocation across customer
classes shall be consistent with the Commission's most recent
order regarding the participating utility's request for a
general increase in its delivery services rates.
Subsequent changes to the performance-based formula rate
structure or protocols shall be made as set forth in Section

HB0804 Engrossed - 777 - LRB102 10881 SPS 16211 b
9-201 of this Act, but nothing in this subsection (c) is
intended to limit the Commission's authority under Article IX
and other provisions of this Act to initiate an investigation
of a participating utility's performance-based formula rate
tariff, provided that any such changes shall be consistent
with paragraphs (1) through (6) of this subsection (c). Any
change ordered by the Commission shall be made at the same time
new rates take effect following the Commission's next order
pursuant to subsection (d) of this Section, provided that the
new rates take effect no less than 30 days after the date on
which the Commission issues an order adopting the change.
A participating utility that files a tariff pursuant to
this subsection (c) must submit a one-time $200,000 filing fee
at the time the Chief Clerk of the Commission accepts the
filing, which shall be a recoverable expense.
In the event the performance-based formula rate is
terminated, the then current rates shall remain in effect
until such time as new rates are set pursuant to Article IX of
this Act, subject to retroactive rate adjustment, with
interest, to reconcile rates charged with actual costs. At
such time that the performance-based formula rate is
terminated, the participating utility's voluntary commitments
and obligations under subsection (b) of this Section shall
immediately terminate, except for the utility's obligation to
pay an amount already owed to the fund for training grants
pursuant to a Commission order issued under subsection (b) of

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this Section.
(d) Subsequent to the Commission's issuance of an order
approving the utility's performance-based formula rate
structure and protocols, and initial rates under subsection
(c) of this Section, the utility shall file, on or before May 1
of each year, with the Chief Clerk of the Commission its
updated cost inputs to the performance-based formula rate for
the applicable rate year and the corresponding new charges.
Each such filing shall conform to the following requirements
and include the following information:
(1) The inputs to the performance-based formula rate
for the applicable rate year shall be based on final
historical data reflected in the utility's most recently
filed annual FERC Form 1 plus projected plant additions
and correspondingly updated depreciation reserve and
expense for the calendar year in which the inputs are
filed. The filing shall also include a reconciliation of
the revenue requirement that was in effect for the prior
rate year (as set by the cost inputs for the prior rate
year) with the actual revenue requirement for the prior
rate year (determined using a year-end rate base) that
uses amounts reflected in the applicable FERC Form 1 that
reports the actual costs for the prior rate year. Any
over-collection or under-collection indicated by such
reconciliation shall be reflected as a credit against, or
recovered as an additional charge to, respectively, with

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interest calculated at a rate equal to the utility's
weighted average cost of capital approved by the
Commission for the prior rate year, the charges for the
applicable rate year. Provided, however, that the first
such reconciliation shall be for the calendar year in
which the utility files its performance-based formula rate
tariff pursuant to subsection (c) of this Section and
shall reconcile (i) the revenue requirement or
requirements established by the rate order or orders in
effect from time to time during such calendar year
(weighted, as applicable) with (ii) the revenue
requirement determined using a year-end rate base for that
calendar year calculated pursuant to the performance-based
formula rate using (A) actual costs for that year as
reflected in the applicable FERC Form 1, and (B) for the
first such reconciliation only, the cost of equity, which
shall be calculated as the sum of 590 basis points plus the
average for the applicable calendar year of the monthly
average yields of 30-year U.S. Treasury bonds published by
the Board of Governors of the Federal Reserve System in
its weekly H.15 Statistical Release or successor
publication. The first such reconciliation is not intended
to provide for the recovery of costs previously excluded
from rates based on a prior Commission order finding of
imprudence or unreasonableness. Each reconciliation shall
be certified by the participating utility in the same

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manner that FERC Form 1 is certified. The filing shall
also include the charge or credit, if any, resulting from
the calculation required by paragraph (6) of subsection
(c) of this Section.
Notwithstanding anything that may be to the contrary,
the intent of the reconciliation is to ultimately
reconcile the revenue requirement reflected in rates for
each calendar year, beginning with the calendar year in
which the utility files its performance-based formula rate
tariff pursuant to subsection (c) of this Section, with
what the revenue requirement determined using a year-end
rate base for the applicable calendar year would have been
had the actual cost information for the applicable
calendar year been available at the filing date.
(2) The new charges shall take effect beginning on the
first billing day of the following January billing period
and remain in effect through the last billing day of the
next December billing period regardless of whether the
Commission enters upon a hearing pursuant to this
subsection (d).
(3) The filing shall include relevant and necessary
data and documentation for the applicable rate year that
is consistent with the Commission's rules applicable to a
filing for a general increase in rates or any rules
adopted by the Commission to implement this Section.
Normalization adjustments shall not be required.

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Notwithstanding any other provision of this Section or Act
or any rule or other requirement adopted by the
Commission, a participating utility that is a combination
utility with more than one rate zone shall not be required
to file a separate set of such data and documentation for
each rate zone and may combine such data and documentation
into a single set of schedules.
Within 45 days after the utility files its annual update
of cost inputs to the performance-based formula rate, the
Commission shall have the authority, either upon complaint or
its own initiative, but with reasonable notice, to enter upon
a hearing concerning the prudence and reasonableness of the
costs incurred by the utility to be recovered during the
applicable rate year that are reflected in the inputs to the
performance-based formula rate derived from the utility's FERC
Form 1. During the course of the hearing, each objection shall
be stated with particularity and evidence provided in support
thereof, after which the utility shall have the opportunity to
rebut the evidence. Discovery shall be allowed consistent with
the Commission's Rules of Practice, which Rules shall be
enforced by the Commission or the assigned administrative law
judge. The Commission shall apply the same evidentiary
standards, including, but not limited to, those concerning the
prudence and reasonableness of the costs incurred by the
utility, in the hearing as it would apply in a hearing to
review a filing for a general increase in rates under Article

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IX of this Act. The Commission shall not, however, have the
authority in a proceeding under this subsection (d) to
consider or order any changes to the structure or protocols of
the performance-based formula rate approved pursuant to
subsection (c) of this Section. In a proceeding under this
subsection (d), the Commission shall enter its order no later
than the earlier of 240 days after the utility's filing of its
annual update of cost inputs to the performance-based formula
rate or December 31. The Commission's determinations of the
prudence and reasonableness of the costs incurred for the
applicable calendar year shall be final upon entry of the
Commission's order and shall not be subject to reopening,
reexamination, or collateral attack in any other Commission
proceeding, case, docket, order, rule or regulation, provided,
however, that nothing in this subsection (d) shall prohibit a
party from petitioning the Commission to rehear or appeal to
the courts the order pursuant to the provisions of this Act.
In the event the Commission does not, either upon
complaint or its own initiative, enter upon a hearing within
45 days after the utility files the annual update of cost
inputs to its performance-based formula rate, then the costs
incurred for the applicable calendar year shall be deemed
prudent and reasonable, and the filed charges shall not be
subject to reopening, reexamination, or collateral attack in
any other proceeding, case, docket, order, rule, or
regulation.

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A participating utility's first filing of the updated cost
inputs, and any Commission investigation of such inputs
pursuant to this subsection (d) shall proceed notwithstanding
the fact that the Commission's investigation under subsection
(c) of this Section is still pending and notwithstanding any
other law, order, rule, or Commission practice to the
contrary.
(e) Nothing in subsections (c) or (d) of this Section
shall prohibit the Commission from investigating, or a
participating utility from filing, revenue-neutral tariff
changes related to rate design of a performance-based formula
rate that has been placed into effect for the utility.
Following approval of a participating utility's
performance-based formula rate tariff pursuant to subsection
(c) of this Section, the utility shall make a filing with the
Commission within one year after the effective date of the
performance-based formula rate tariff that proposes changes to
the tariff to incorporate the findings of any final rate
design orders of the Commission applicable to the
participating utility and entered subsequent to the
Commission's approval of the tariff. The Commission shall,
after notice and hearing, enter its order approving, or
approving with modification, the proposed changes to the
performance-based formula rate tariff within 240 days after
the utility's filing. Following such approval, the utility
shall make a filing with the Commission during each subsequent

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3-year period that either proposes revenue-neutral tariff
changes or re-files the existing tariffs without change, which
shall present the Commission with an opportunity to suspend
the tariffs and consider revenue-neutral tariff changes
related to rate design.
(f) Within 30 days after the filing of a tariff pursuant to
subsection (c) of this Section, each participating utility
shall develop and file with the Commission multi-year metrics
designed to achieve, ratably (i.e., in equal segments) over a
10-year period, improvement over baseline performance values
as follows:
(1) Twenty percent improvement in the System Average
Interruption Frequency Index, using a baseline of the
average of the data from 2001 through 2010.
(2) Fifteen percent improvement in the system Customer
Average Interruption Duration Index, using a baseline of
the average of the data from 2001 through 2010.
(3) For a participating utility other than a
combination utility, 20% improvement in the System Average
Interruption Frequency Index for its Southern Region,
using a baseline of the average of the data from 2001
through 2010. For purposes of this paragraph (3), Southern
Region shall have the meaning set forth in the
participating utility's most recent report filed pursuant
to Section 16-125 of this Act.
(3.5) For a participating utility other than a

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combination utility, 20% improvement in the System Average
Interruption Frequency Index for its Northeastern Region,
using a baseline of the average of the data from 2001
through 2010. For purposes of this paragraph (3.5),
Northeastern Region shall have the meaning set forth in
the participating utility's most recent report filed
pursuant to Section 16-125 of this Act.
(4) Seventy-five percent improvement in the total
number of customers who exceed the service reliability
targets as set forth in subparagraphs (A) through (C) of
paragraph (4) of subsection (b) of 83 Ill. Admin. Code
Part 411.140 as of May 1, 2011, using 2010 as the baseline
year.
(5) Reduction in issuance of estimated electric bills:
90% improvement for a participating utility other than a
combination utility, and 56% improvement for a
participating utility that is a combination utility, using
a baseline of the average number of estimated bills for
the years 2008 through 2010.
(6) Consumption on inactive meters: 90% improvement
for a participating utility other than a combination
utility, and 56% improvement for a participating utility
that is a combination utility, using a baseline of the
average unbilled kilowatthours for the years 2009 and
2010.
(7) Unaccounted for energy: 50% improvement for a

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participating utility other than a combination utility
using a baseline of the non-technical line loss
unaccounted for energy kilowatthours for the year 2009.
(8) Uncollectible expense: reduce uncollectible
expense by at least $30,000,000 for a participating
utility other than a combination utility and by at least
$3,500,000 for a participating utility that is a
combination utility, using a baseline of the average
uncollectible expense for the years 2008 through 2010.
(9) Opportunities for black, indigenous, and people of
color-owned and women-owned minority-owned and
female-owned business enterprises: design a performance
metric regarding the creation of opportunities for black,
indigenous, and people of color-owned and women-owned
minority-owned and female-owned business enterprises
consistent with State and federal law using a base
performance value of the percentage of the participating
utility's capital expenditures that were paid to black,
indigenous, and people of color-owned and women-owned
minority-owned and female-owned business enterprises in
2010.
The definitions set forth in 83 Ill. Admin. Code Part
411.20 as of May 1, 2011 shall be used for purposes of
calculating performance under paragraphs (1) through (3.5) of
this subsection (f), provided, however, that the participating
utility may exclude up to 9 extreme weather event days from

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such calculation for each year, and provided further that the
participating utility shall exclude 9 extreme weather event
days when calculating each year of the baseline period to the
extent that there are 9 such days in a given year of the
baseline period. For purposes of this Section, an extreme
weather event day is a 24-hour calendar day (beginning at
12:00 a.m. and ending at 11:59 p.m.) during which any weather
event (e.g., storm, tornado) caused interruptions for 10,000
or more of the participating utility's customers for 3 hours
or more. If there are more than 9 extreme weather event days in
a year, then the utility may choose no more than 9 extreme
weather event days to exclude, provided that the same extreme
weather event days are excluded from each of the calculations
performed under paragraphs (1) through (3.5) of this
subsection (f).
The metrics shall include incremental performance goals
for each year of the 10-year period, which shall be designed to
demonstrate that the utility is on track to achieve the
performance goal in each category at the end of the 10-year
period. The utility shall elect when the 10-year period shall
commence for the metrics set forth in subparagraphs (1)
through (4) and (9) of this subsection (f), provided that it
begins no later than 14 months following the date on which the
utility begins investing pursuant to subsection (b) of this
Section, and when the 10-year period shall commence for the
metrics set forth in subparagraphs (5) through (8) of this

HB0804 Engrossed - 788 - LRB102 10881 SPS 16211 b
subsection (f), provided that it begins no later than 14
months following the date on which the Commission enters its
order approving the utility's Advanced Metering Infrastructure
Deployment Plan pursuant to subsection (c) of Section 16-108.6
of this Act.
The metrics and performance goals set forth in
subparagraphs (5) through (8) of this subsection (f) are based
on the assumptions that the participating utility may fully
implement the technology described in subsection (b) of this
Section, including utilizing the full functionality of such
technology and that there is no requirement for personal
on-site notification. If the utility is unable to meet the
metrics and performance goals set forth in subparagraphs (5)
through (8) of this subsection (f) for such reasons, and the
Commission so finds after notice and hearing, then the utility
shall be excused from compliance, but only to the limited
extent achievement of the affected metrics and performance
goals was hindered by the less than full implementation.
(f-5) The financial penalties applicable to the metrics
described in subparagraphs (1) through (8) of subsection (f)
of this Section, as applicable, shall be applied through an
adjustment to the participating utility's return on equity of
no more than a total of 30 basis points in each of the first 3
years, of no more than a total of 34 basis points in each of
the 3 years thereafter, and of no more than a total of 38 basis
points in each of the 4 years thereafter, as follows:

HB0804 Engrossed - 789 - LRB102 10881 SPS 16211 b
(1) With respect to each of the incremental annual
performance goals established pursuant to paragraph (1) of
subsection (f) of this Section,
(A) for each year that a participating utility
other than a combination utility does not achieve the
annual goal, the participating utility's return on
equity shall be reduced as follows: during years 1
through 3, by 5 basis points; during years 4 through 6,
by 6 basis points; and during years 7 through 10, by 7
basis points; and
(B) for each year that a participating utility
that is a combination utility does not achieve the
annual goal, the participating utility's return on
equity shall be reduced as follows: during years 1
through 3, by 10 basis points; during years 4 through
6, by 12 basis points; and during years 7 through 10,
by 14 basis points.
(2) With respect to each of the incremental annual
performance goals established pursuant to paragraph (2) of
subsection (f) of this Section, for each year that the
participating utility does not achieve each such goal, the
participating utility's return on equity shall be reduced
as follows: during years 1 through 3, by 5 basis points;
during years 4 through 6, by 6 basis points; and during
years 7 through 10, by 7 basis points.
(3) With respect to each of the incremental annual

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performance goals established pursuant to paragraphs (3)
and (3.5) of subsection (f) of this Section, for each year
that a participating utility other than a combination
utility does not achieve both such goals, the
participating utility's return on equity shall be reduced
as follows: during years 1 through 3, by 5 basis points;
during years 4 through 6, by 6 basis points; and during
years 7 through 10, by 7 basis points.
(4) With respect to each of the incremental annual
performance goals established pursuant to paragraph (4) of
subsection (f) of this Section, for each year that the
participating utility does not achieve each such goal, the
participating utility's return on equity shall be reduced
as follows: during years 1 through 3, by 5 basis points;
during years 4 through 6, by 6 basis points; and during
years 7 through 10, by 7 basis points.
(5) With respect to each of the incremental annual
performance goals established pursuant to subparagraph (5)
of subsection (f) of this Section, for each year that the
participating utility does not achieve at least 95% of
each such goal, the participating utility's return on
equity shall be reduced by 5 basis points for each such
unachieved goal.
(6) With respect to each of the incremental annual
performance goals established pursuant to paragraphs (6),
(7), and (8) of subsection (f) of this Section, as

HB0804 Engrossed - 791 - LRB102 10881 SPS 16211 b
applicable, which together measure non-operational
customer savings and benefits relating to the
implementation of the Advanced Metering Infrastructure
Deployment Plan, as defined in Section 16-108.6 of this
Act, the performance under each such goal shall be
calculated in terms of the percentage of the goal
achieved. The percentage of goal achieved for each of the
goals shall be aggregated, and an average percentage value
calculated, for each year of the 10-year period. If the
utility does not achieve an average percentage value in a
given year of at least 95%, the participating utility's
return on equity shall be reduced by 5 basis points.
The financial penalties shall be applied as described in
this subsection (f-5) for the 12-month period in which the
deficiency occurred through a separate tariff mechanism, which
shall be filed by the utility together with its metrics. In the
event the formula rate tariff established pursuant to
subsection (c) of this Section terminates, the utility's
obligations under subsection (f) of this Section and this
subsection (f-5) shall also terminate, provided, however, that
the tariff mechanism established pursuant to subsection (f) of
this Section and this subsection (f-5) shall remain in effect
until any penalties due and owing at the time of such
termination are applied.
The Commission shall, after notice and hearing, enter an
order within 120 days after the metrics are filed approving,

HB0804 Engrossed - 792 - LRB102 10881 SPS 16211 b
or approving with modification, a participating utility's
tariff or mechanism to satisfy the metrics set forth in
subsection (f) of this Section. On June 1 of each subsequent
year, each participating utility shall file a report with the
Commission that includes, among other things, a description of
how the participating utility performed under each metric and
an identification of any extraordinary events that adversely
impacted the utility's performance. Whenever a participating
utility does not satisfy the metrics required pursuant to
subsection (f) of this Section, the Commission shall, after
notice and hearing, enter an order approving financial
penalties in accordance with this subsection (f-5). The
Commission-approved financial penalties shall be applied
beginning with the next rate year. Nothing in this Section
shall authorize the Commission to reduce or otherwise obviate
the imposition of financial penalties for failing to achieve
one or more of the metrics established pursuant to
subparagraph (1) through (4) of subsection (f) of this
Section.
(g) On or before July 31, 2014, each participating utility
shall file a report with the Commission that sets forth the
average annual increase in the average amount paid per
kilowatthour for residential eligible retail customers,
exclusive of the effects of energy efficiency programs,
comparing the 12-month period ending May 31, 2012; the
12-month period ending May 31, 2013; and the 12-month period

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ending May 31, 2014. For a participating utility that is a
combination utility with more than one rate zone, the weighted
average aggregate increase shall be provided. The report shall
be filed together with a statement from an independent auditor
attesting to the accuracy of the report. The cost of the
independent auditor shall be borne by the participating
utility and shall not be a recoverable expense. "The average
amount paid per kilowatthour" shall be based on the
participating utility's tariffed rates actually in effect and
shall not be calculated using any hypothetical rate or
adjustments to actual charges (other than as specified for
energy efficiency) as an input.
In the event that the average annual increase exceeds 2.5%
as calculated pursuant to this subsection (g), then Sections
16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other
than this subsection, shall be inoperative as they relate to
the utility and its service area as of the date of the report
due to be submitted pursuant to this subsection and the
utility shall no longer be eligible to annually update the
performance-based formula rate tariff pursuant to subsection
(d) of this Section. In such event, the then current rates
shall remain in effect until such time as new rates are set
pursuant to Article IX of this Act, subject to retroactive
adjustment, with interest, to reconcile rates charged with
actual costs, and the participating utility's voluntary
commitments and obligations under subsection (b) of this

HB0804 Engrossed - 794 - LRB102 10881 SPS 16211 b
Section shall immediately terminate, except for the utility's
obligation to pay an amount already owed to the fund for
training grants pursuant to a Commission order issued under
subsection (b) of this Section.
In the event that the average annual increase is 2.5% or
less as calculated pursuant to this subsection (g), then the
performance-based formula rate shall remain in effect as set
forth in this Section.
For purposes of this Section, the amount per kilowatthour
means the total amount paid for electric service expressed on
a per kilowatthour basis, and the total amount paid for
electric service includes without limitation amounts paid for
supply, transmission, distribution, surcharges, and add-on
taxes exclusive of any increases in taxes or new taxes imposed
after October 26, 2011 (the effective date of Public Act
97-616). For purposes of this Section, "eligible retail
customers" shall have the meaning set forth in Section
16-111.5 of this Act.
The fact that this Section becomes inoperative as set
forth in this subsection shall not be construed to mean that
the Commission may reexamine or otherwise reopen prudence or
reasonableness determinations already made.
(h) By December 31, 2017, the Commission shall prepare and
file with the General Assembly a report on the infrastructure
program and the performance-based formula rate. The report
shall include the change in the average amount per

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kilowatthour paid by residential customers between June 1,
2011 and May 31, 2017. If the change in the total average rate
paid exceeds 2.5% compounded annually, the Commission shall
include in the report an analysis that shows the portion of the
change due to the delivery services component and the portion
of the change due to the supply component of the rate. The
report shall include separate sections for each participating
utility.
Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of
this Act, other than this subsection (h), are inoperative
after December 31, 2021 2022 for every participating utility
(except for subsection (g) of Section 16-108.6, which is
inoperative after December 31, 2022), after which time a
participating utility shall no longer be eligible to annually
update the performance-based formula rate tariff pursuant to
subsection (d) of this Section. At such time, the then current
rates shall remain in effect until such time as new rates are
set pursuant to Article IX of this Act, subject to retroactive
adjustment, with interest, to reconcile rates charged with
actual costs.
The fact that this Section becomes inoperative as set
forth in this subsection shall not be construed to mean that
the Commission may reexamine or otherwise reopen prudence or
reasonableness determinations already made.
(i) While a participating utility may use, develop, and
maintain broadband systems and the delivery of broadband

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services, voice-over-internet-protocol services,
telecommunications services, and cable and video programming
services for use in providing delivery services and Smart Grid
functionality or application to its retail customers,
including, but not limited to, the installation,
implementation and maintenance of Smart Grid electric system
upgrades as defined in Section 16-108.6 of this Act, a
participating utility is prohibited from offering to its
retail customers broadband services or the delivery of
broadband services, voice-over-internet-protocol services,
telecommunications services, or cable or video programming
services, unless they are part of a service directly related
to delivery services or Smart Grid functionality or
applications as defined in Section 16-108.6 of this Act, and
from recovering the costs of such offerings from retail
customers.
(j) Nothing in this Section is intended to legislatively
overturn the opinion issued in Commonwealth Edison Co. v. Ill.
Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137,
1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App.
Ct. 2d Dist. Sept. 30, 2010). Public Act 97-616 shall not be
construed as creating a contract between the General Assembly
and the participating utility, and shall not establish a
property right in the participating utility.
(k) The changes made in subsections (c) and (d) of this
Section by Public Act 98-15 are intended to be a restatement

HB0804 Engrossed - 797 - LRB102 10881 SPS 16211 b
and clarification of existing law, and intended to give
binding effect to the provisions of House Resolution 1157
adopted by the House of Representatives of the 97th General
Assembly and Senate Resolution 821 adopted by the Senate of
the 97th General Assembly that are reflected in paragraph (3)
of this subsection. In addition, Public Act 98-15 preempts and
supersedes any final Commission orders entered in Docket Nos.
11-0721, 12-0001, 12-0293, and 12-0321 to the extent
inconsistent with the amendatory language added to subsections
(c) and (d).
(1) No earlier than 5 business days after May 22, 2013
(the effective date of Public Act 98-15), each
participating utility shall file any tariff changes
necessary to implement the amendatory language set forth
in subsections (c) and (d) of this Section by Public Act
98-15 and a revised revenue requirement under the
participating utility's performance-based formula rate.
The Commission shall enter a final order approving such
tariff changes and revised revenue requirement within 21
days after the participating utility's filing.
(2) Notwithstanding anything that may be to the
contrary, a participating utility may file a tariff to
retroactively recover its previously unrecovered actual
costs of delivery service that are no longer subject to
recovery through a reconciliation adjustment under
subsection (d) of this Section. This retroactive recovery

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shall include any derivative adjustments resulting from
the changes to subsections (c) and (d) of this Section by
Public Act 98-15. Such tariff shall allow the utility to
assess, on current customer bills over a period of 12
monthly billing periods, a charge or credit related to
those unrecovered costs with interest at the utility's
weighted average cost of capital during the period in
which those costs were unrecovered. A participating
utility may file a tariff that implements a retroactive
charge or credit as described in this paragraph for
amounts not otherwise included in the tariff filing
provided for in paragraph (1) of this subsection (k). The
Commission shall enter a final order approving such tariff
within 21 days after the participating utility's filing.
(3) The tariff changes described in paragraphs (1) and
(2) of this subsection (k) shall relate only to, and be
consistent with, the following provisions of Public Act
98-15: paragraph (2) of subsection (c) regarding year-end
capital structure, subparagraph (D) of paragraph (4) of
subsection (c) regarding pension assets, and subsection
(d) regarding the reconciliation components related to
year-end rate base and interest calculated at a rate equal
to the utility's weighted average cost of capital.
(4) Nothing in this subsection is intended to effect a
dismissal of or otherwise affect an appeal from any final
Commission orders entered in Docket Nos. 11-0721, 12-0001,

HB0804 Engrossed - 799 - LRB102 10881 SPS 16211 b
12-0293, and 12-0321 other than to the extent of the
amendatory language contained in subsections (c) and (d)
of this Section of Public Act 98-15.
(l) Each participating utility shall be deemed to have
been in full compliance with all requirements of subsection
(b) of this Section, subsection (c) of this Section, Section
16-108.6 of this Act, and all Commission orders entered
pursuant to Sections 16-108.5 and 16-108.6 of this Act, up to
and including May 22, 2013 (the effective date of Public Act
98-15). The Commission shall not undertake any investigation
of such compliance and no penalty shall be assessed or adverse
action taken against a participating utility for noncompliance
with Commission orders associated with subsection (b) of this
Section, subsection (c) of this Section, and Section 16-108.6
of this Act prior to such date. Each participating utility
other than a combination utility shall be permitted, without
penalty, a period of 12 months after such effective date to
take actions required to ensure its infrastructure investment
program is in compliance with subsection (b) of this Section
and with Section 16-108.6 of this Act. Provided further, the
following subparagraphs shall apply to a participating utility
other than a combination utility:
(A) if the Commission has initiated a proceeding
pursuant to subsection (e) of Section 16-108.6 of this Act
that is pending as of May 22, 2013 (the effective date of
Public Act 98-15), then the order entered in such

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proceeding shall, after notice and hearing, accelerate the
commencement of the meter deployment schedule approved in
the final Commission order on rehearing entered in Docket
No. 12-0298;
(B) if the Commission has entered an order pursuant to
subsection (e) of Section 16-108.6 of this Act prior to
May 22, 2013 (the effective date of Public Act 98-15) that
does not accelerate the commencement of the meter
deployment schedule approved in the final Commission order
on rehearing entered in Docket No. 12-0298, then the
utility shall file with the Commission, within 45 days
after such effective date, a plan for accelerating the
commencement of the utility's meter deployment schedule
approved in the final Commission order on rehearing
entered in Docket No. 12-0298; the Commission shall reopen
the proceeding in which it entered its order pursuant to
subsection (e) of Section 16-108.6 of this Act and shall,
after notice and hearing, enter an amendatory order that
approves or approves as modified such accelerated plan
within 90 days after the utility's filing; or
(C) if the Commission has not initiated a proceeding
pursuant to subsection (e) of Section 16-108.6 of this Act
prior to May 22, 2013 (the effective date of Public Act
98-15), then the utility shall file with the Commission,
within 45 days after such effective date, a plan for
accelerating the commencement of the utility's meter

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deployment schedule approved in the final Commission order
on rehearing entered in Docket No. 12-0298 and the
Commission shall, after notice and hearing, approve or
approve as modified such plan within 90 days after the
utility's filing.
Any schedule for meter deployment approved by the
Commission pursuant to this subsection (l) shall take into
consideration procurement times for meters and other equipment
and operational issues. Nothing in Public Act 98-15 shall
shorten or extend the end dates for the 5-year or 10-year
periods set forth in subsection (b) of this Section or Section
16-108.6 of this Act. Nothing in this subsection is intended
to address whether a participating utility has, or has not,
satisfied any or all of the metrics and performance goals
established pursuant to subsection (f) of this Section.
(m) The provisions of Public Act 98-15 are severable under
Section 1.31 of the Statute on Statutes.
(Source: P.A. 99-143, eff. 7-27-15; 99-642, eff. 7-28-16;
99-906, eff. 6-1-17; 100-840, eff. 8-13-18.)
(220 ILCS 5/16-108.9 new)
Sec. 16-108.9. Clean Energy Empowerment Zone pilot
projects.
(a) The General Assembly finds that it is important to
support the rapid transition in the energy sector to put
Illinois on a path to 100% renewable energy. This will require

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leveraging new technologies and solutions to support grid
reliability to address issues such as the shift from large,
centralized, fossil generation to wind, solar, and distributed
energy resources. To that end, the General Assembly sees the
need for developing pilot projects in Clean Energy Empowerment
Zones that enhance reliability while facilitating the
transition toward clean energy.
(b) An electric utility serving more than 100,000 retail
customers may propose one or more Clean Energy Empowerment
Zone pilot projects to the Illinois Commerce Commission to
conduct a competitive procurement for independently owned
energy storage systems to be located in Clean Energy
Empowerment Zones. The Commission shall evaluate the projects
based on their ability to address present and future
reliability needs identified by the Midcontinent Independent
System Operator, PJM Interconnection, electric utilities, or
independent analysts. In addition to supporting reliability, a
qualifying project must support the transition toward or
development of clean energy.
(c) The Clean Energy Empowerment Zones described in this
Section shall be the same as defined by the Department of
Commerce and Economic Opportunity in the Energy Community
Reinvestment Act.
(d) The Clean Energy Empowerment Zone pilot projects shall
closely coordinate with actual and expected development of new
wind projects and new solar projects as described in Section

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1-75 of the Illinois Power Agency Act, electric vehicle
adoption, and Community Energy, Climate, and Jobs Plans as
defined in the Community Energy, Climate, and Jobs Planning
Act.
(e) Upon approval of a Clean Energy Empowerment Zone pilot
project by the Illinois Commerce Commission, an electric
utility is authorized to enter into a distribution services
contract with new energy storage system projects in accordance
with the approved project. Nothing in this Section or in the
distribution services contract shall preclude the energy
storage project from providing additional wholesale market
services.
(f) An electric utility that elects to undertake the
investment described in subsection (b) of this Section may, at
its election, recover the costs of such investment through an
automatic adjustment clause tariff or through a delivery
services charge regardless of how the costs are classified on
the utility's books and records of account.
(g) To the extent feasible and consistent with State and
federal law, the investments made pursuant to this Section
shall provide employment opportunities for former workers in
fossil fuel industries and participants in the Clean Jobs
Workforce Hubs as defined in the Clean Jobs, Workforce and
Contractor Equity Act.
(h) Nothing in this Section is intended to limit the
ability of any other entity to develop, construct, or install

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an energy storage system. In addition, nothing in this Section
is intended to limit or alter otherwise applicable
interconnection requirements.
(220 ILCS 5/16-108.18 new)
Sec. 16-108.18. Performance-based ratemaking.
(a) Findings and Purpose. The General Assembly finds that
improving the alignment of utility customer and company
interests is critical to ensuring that Illinois residents and
businesses have the opportunity to optimize existing utility
infrastructure and do not suffer economic and environmental
harm from the State's energy systems. This realignment is
critical to ensure the ongoing viability of Illinois electric
utilities, as they face an increasing need to rapidly adopt
business models and strategies that enable new innovations and
customer choices. Furthermore, the General Assembly finds that
this realignment has entered a period of extraordinary
urgency, given the expected rapid growth of distributed energy
resources, electric vehicles, and other new technologies that
substantially change the makeup of the grid. Moreover, urgency
of action to address increasing threats from climate change
and to assist communities that have borne a disproportionate
impact from air pollution, greenhouse gas emissions, and
energy burdens requires immediate and significant change to
the business model under which utilities in Illinois have
functioned. Providing incentive for necessary changes through

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a new holistic, performance-based structure for ratemaking
will enable alignment of utility, customer, community and
environmental goals. In particular, the General Assembly finds
that:
(1) The traditional regulatory model rewards utilities
for increasing capital expenditures by basing allowed
revenues on the value of the rate base, irrespective of
utility performance. This compact does not align the
interests of customers and utilities because it may result
in a bias toward expending utility capital in ways that
may displace more efficient or cost-effective options,
such as distributed energy resources owned by customers or
projects implemented by independent third parties that can
meet grid needs.
(2) Traditional regulation also rewards utilities for
selling higher volumes of electricity through the
throughput incentive. This model unnecessarily increases
customer costs and pollution and is therefore in neither
ratepayers' nor the State's interest.
(3) Though Illinois has taken some measures to move
utilities to performance-based ratemaking through the
establishment of performance incentives and a
performance-based formula rate under the Energy
Infrastructure Modernization Act, these measures have not
been transformative in urgently moving electric utilities
toward the State's ambitious energy policy goals:

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protecting a healthy environment and climate, improving
public health, and creating quality jobs and economic
opportunities including wealth building, especially in
economically disadvantaged communities and BIPOC
communities. Rather, they have resulted in excess utility
profits without meaningful improvements in customer
experience, rates, or equity.
(4) The General Assembly therefore directs the
Illinois Commerce Commission to complete a transition to a
comprehensive performance-based regulation framework for
electric utilities with more than 500,000 customers. The
breadth of this framework should remake existing utility
regulations to position Illinois electric utilities to
effectively and efficiently achieve current and
anticipated future energy needs of this State.
(5) It is the intent of the General Assembly that over
time the comprehensive performance-based regulation
framework will progressively reduce the direct link
between utility revenues and traditional investment levels
and increasingly tie revenues to performance.
(b) Definitions.
As used in this Section:
"Commission" means the Illinois Commerce Commission.
"Demand response" means measures that decrease peak
electricity demand or shift demand from peak to off-peak
periods.

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"Distributed energy resources" or "DER" means a wide range
of technologies that are located on the customer side of the
customer's electric meter and can provide value to the
distribution system, including, but not limited to,
distributed generation, energy storage, electric vehicles, and
demand response technologies.
"Economically disadvantaged communities" means areas of
one or more census tracts where average household income does
not exceed 80% of area median income.
"Environmental justice communities" means the definition
of that term based on existing methodologies and findings,
used and as may be updated by the Illinois Power Agency and its
Program Administrator in the Illinois Solar for All Program.
"Performance-based regulation or ratemaking" or "PBR"
means a regulatory approach that aligns utility interests with
customer and societal interests through regulatory mechanisms
that motivate utilities to improve operations, increase
program effectiveness, better manage business expenses, and
align system performance with identified societal or policy
goals.
(c) Objectives. The comprehensive PBR framework should be
designed to accomplish the following objectives:
(1) incentivize utilities to pursue cost-effective
solutions to meet customer needs;
(2) decarbonize utility systems at a pace that meets
or exceeds state climate goals;

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(3) remove utility incentives to grow energy sales,
except where sales growth is determined to be aligned with
state policy goals;
(4) reduce the link between utility expenditures and
collected revenue and eliminate embedded utility
preferences for one type of expenditure over another for
the same service;
(5) incentivize utilities to undertake the most
effective expenditures for assets or services, whether
self-supplied by the utility or through third-party
contracting, to deliver high-quality service to customers
at least cost;
(6) maintain the affordability, safety, and
reliability of electric power supply; and
(7) incentivize utilities to pursue equitable access
to high-quality customer service, affordable rates, DER
interconnection, and the benefits of grid modernization
and clean energy for ratepayers in environmental justice
and economically disadvantaged communities. Additionally,
motivate utilities to sustain a diverse workforce,
supplier procurement base and, for relevant programs,
approved vendor pools.
(d) The comprehensive PBR framework should comprise a set
of PBR mechanisms that collectively accomplish the objectives
set forth in subsection (c). Those mechanisms may include, but
are not limited to:

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(1) multiyear rate plans and associated features, as
set forth in subsection (e) of this Section;
(2) revenue decoupling, as set forth in paragraph (11)
of subsection (e) of this Section;
(3) shared savings mechanisms;
(4) performance incentive mechanisms, as set forth in
subsection (f) of this Section;
(5) changes to the accounting treatment of capital and
operating expenditures; and
(6) changes to rate design, as set forth in Section
paragraph 10 of subsection (e) of this Section.
(e) Multi-year Rate Plan.
(1) If an electric utility has a performance-based
formula rate in effect under Section 16-108.5 as of
December 31, 2020, then the utility shall file a petition
proposing tariffs implementing a four-year Multi-year Rate
Plan as provided in this Section no later than July 1, 2022
for delivery service rates to be effective from June 1,
2023 through May 31, 2027. The Commission shall issue an
order approving, approving as modified, or rejecting the
utility's plan no later than June 1, 2023. If the
Commission rejects the utility's plan, the deadline to
approve the plan or approve it as modified shall be
extended to 4 months from the date of the rejection. The
term "Multi-year Rate Plan" refers to a plan establishing
the rates the utility may charge for each delivery year of

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the four-year period to be covered by the plan. The net
revenue requirement reflected in rates in effect on
December 31, 2021 for the electric utility shall remain in
effect until new rates are approved under the Multi-year
Rate Plan, and no additional annual reconciliation under
Section 16-108.5 shall be made.
(2) A utility proposing a Multi-year Rate Plan shall
provide a description of the utility's major planned
investments, which shall include at a minimum all
investments of $1 million or greater over the plan period.
Planned investments must conform to the goals established
in the Multi-year Integrated Grid Plan described in
section 16-105.17 of this Act.
(3) The Multi-year Rate Plan shall be implemented
through a tariff filed with the Commission consistent with
the provisions of this paragraph (3) that shall apply to
all delivery service customers. The Commission shall
initiate and conduct an investigation of the tariff in a
manner consistent with the provisions of this paragraph
(3) and the provisions of Article IX of this Act to the
extent they do not conflict with this paragraph (3). The
Multi-year Rate Plan approved by the Commission shall do
the following:
(A) Provide for the recovery of the utility's
forecasted rate base, based on a budget forecast or a
fixed escalation rate, individually or in combination.

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The forecasted rate base must include the utility's
planned capital investments and investment-related
costs, including income tax impacts, depreciation, and
property taxes prudently incurred and reasonable in
amount consistent with Commission practice and law.
The budgeting process must be iterative, be rigorous,
and lead to forecasts that reasonably represent the
utility's investments during the forecasted period.
(B) For the first Multi-year Rate Plan, reflect
year-end capital structure that includes a common
equity ratio, excluding goodwill, of no more than 50%
of the total capital structure shall be deemed
reasonable and prudent and used to set rates.
(C) For the first Multi-year Rate Plan, include a
cost of equity, which shall be calculated as the sum of
the following:
(i) the average for the applicable calendar
year of the monthly average yields of 30-year U.S.
Treasury bonds published by the Board of Governors
of the Federal Reserve System in its weekly H.15
Statistical Release or successor publication; and
(ii) 530 basis points.
At such time as the Board of Governors of the
Federal Reserve System ceases to include the monthly
average yields of 30-year U.S. Treasury bonds in its
weekly H.15 Statistical Release or successor

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publication, the monthly average yields of the U.S.
Treasury bonds then having the longest duration
published by the Board of Governors in its weekly H.15
Statistical Release or successor publication shall
instead be used for purposes of this subparagraph (C).
(D) For subsequent Multi-year Rate Plans, the cost
of equity and capital structure shall be established
by the Commission and shall be set to reflect a
risk-adjusted return compared to the prevailing cost
of capital and comparable investments in the economy,
including U.S. Treasury rates, upon which additional
earning opportunities and penalties can be provided to
reflect utility performance against identified
outcomes.
(E) Recovery of operations and maintenance
expenses, based on projected costs, an
electricity-related price index or other formula.
(F) Amortize the amount of unprotected
property-related excess accumulated deferred income
taxes in rates as of December 31, 2022 over a period of
5 years.
(G) Disallow recovery of charitable contributions.
(H) Allow recovery of pension and other
post-employment benefits expense only if such costs
are demonstrated to be funded by ratepayers.
(I) Allow recovery of incentive compensation

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expense that is based on the achievement of
operational metrics, including metrics related to
budget controls, outage duration and frequency,
safety, customer service, efficiency and productivity,
environmental compliance and attainment of
environmental goals, and other goals and metrics
approved by the Commission. Incentive compensation
expense that is based on net income or an affiliate's
earnings per share shall not be recoverable;
(4) Rates charged under the Multi-Year Rate Plan must
be based only upon the utility's reasonable and prudent
costs of service over the term of the plan, as determined
by the Commission, provided that the costs are not being
recovered elsewhere in rates. Rate adjustments authorized
by the Commission may continue outside of a plan
authorized under this Section to the extent such costs are
not recovered elsewhere in rates. The burden of proof
shall be on the electric utility to establish the prudence
of investments and expenditures and to establish that such
investments are reasonably necessary to meet the
requirements of the most recently approved Multi-Year
Integrated Grid Plan described in Section 16-105.17 of
this Act. The sole fact that a cost differs from that
incurred in a prior period or that an investment is
different from that described the Multi-year Integrated
Grid Plan shall not imply the imprudence or

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unreasonableness of that cost or investment. The sole fact
that an investment is the same or similar to that
described in the Multi-Year Integrated Grid Plan shall not
imply prudence and reasonableness.
(5) To facilitate public transparency, all materials,
data, testimony, schedules, etc. shall be provided to the
Commission in an editable, machine-readable electronic
format including .doc, .docx, .xls, .xlsx, and similar,
but not including .pdf or .exif. Should utilities
designate any materials "confidential," they shall have an
affirmative duty to explain why the particular information
is marked confidential. In determining prudence and
reasonableness of rates, the Commission shall also
consider each public comment filed in the docket.
(6) The Commission may, by order, establish terms,
conditions, and procedures for a Multi-year Rate Plan
necessary to implement this Section and ensure that rates
remain just and reasonable during the course of the plan,
including terms and procedures for rate adjustment. At any
time prior to conclusion of a Multi-year Rate Plan, the
Commission, upon its own motion or upon petition of any
party, may initiate a proceeding to examine the
reasonableness of the utility's rates under the plan, and
adjust rates as necessary.
(7) Capital True-up. The utility shall propose an
annual capital true-up mechanism that provides a refund to

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customers if the utility's actual capital-related revenue
requirement is less in total in any of the Multi-Year Rate
Plan delivery years than the Commission authorizes for
that year. Conversely, if the Company's actual
capital-related revenue requirement is more in total in
the Multi-year Rate Plan delivery year than the Commission
authorizes for that year, the Company cannot surcharge
customers to collect any under recovery.
(8) A participating utility that files a tariff
pursuant to paragraph (3) of this subsection (e) must
submit a one-time $200,000 filing fee at the time the
Chief Clerk of the Commission accepts the filing, which
shall be a recoverable expense.
(9) Subsequent Multi-Year Rate Plans. An electric
utility operating under the Multi-Year Rate Plan shall
file a new Multi-Year Rate Plan at least 210 days prior to
the end of the initial Multi-Year Rate Plan, and every 4
years thereafter, with a rate-effective date of the
proposed tariffs such that, after the Commission
suspension period, the rates would take effect immediately
at the close of the final year of the initial Multi-Year
Rate Plan. In subsequent Multi-Year Rate Plans, as in the
initial plans, utilities and stakeholders may propose
additional metrics that achieve the outcomes described in
paragraph (2) of subsection (f) of this Section.
(10) Rate Design. The Commission shall approve tariffs

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as part of each Multi-Year Rate Plan establishing rate
design for all delivery service customers. These shall
expand the rate options available to customers, including,
but not limited to, an affordability rate for low-income
residential customers, a time-of-use rate, an electric
vehicle rate, and a peak time savings rate.
(11) Decoupling. The Commission may, by order, approve
a tariff filed by an electric utility that provides for
decoupling of sales and revenues to mitigate the impact on
public utilities of the energy-savings goals and to reduce
a utility's disincentive to promote energy efficiency
under Section 16-111.5B of this Act without adversely
affecting utility ratepayers. In its consideration of a
proposed decoupling tariff, the Commission shall consider
a mechanism that triggers the periodic adjustment to rates
when the changes in revenue would result in a change
within a certain percentage, an earnings band to share
revenues that exceed the authorized return, or other
mechanisms that reduce the size and frequency of rate
adjustments.
(f) Performance Incentive Mechanisms.
(1) The Commission shall establish performance
incentive mechanisms in order to better tie utility
revenues to performance and customer benefits, accelerate
progress on Illinois energy and other goals, and hold
utilities publicly accountable. The Commission shall

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develop metrics, which are observable and measurable
indicators of system or utility performance, in order to
create performance incentive mechanisms. Specifically, the
Commission shall establish:
(A) Tracking metrics, which will be used for
measuring and reporting utility performance.
(B) Performance metrics, which will be used for
financially incentivizing improved utility
performance.
(2) Outcomes of Metrics. The Commission shall approve
tracking and performance metrics that encourage
cost-effective, equitable utility achievement of the
following outcomes:
(A) Affordability. Achieve affordable customer
energy costs and utility bills, with particular
emphasis on keeping lower-income households' bills
within a manageable portion of their income.
(B) Pollution Reduction. Minimize emissions of
greenhouse gases and pollutants that harm human
health, particularly in environmental justice and
economically disadvantaged communities, through both
(A) minimizing emissions per kilowatt-hour of
electricity consumed; and (B) minimizing total
emissions, including by accelerating electrification
of transportation, buildings and industries where such
electrification results in net reductions, across all

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fuels and over the life of electrification measures,
of greenhouse gases and other pollutants.
(C) Flexibility. Enhance the grid's flexibility to
adapt to increased deployment of nondispatchable
resources; improve the ability and performance of the
grid on load balancing; and address uncertainty around
future customer needs, future environmental concerns,
emerging technology, changes in costs of technology
and service, and other factors.
(D) Reliability. Meet high standards of overall
and locational reliability.
(E) Customer Experience. Deliver customer service
quality, customer engagement, and customer access to
utility system information.
(F) Equity. Maximize and prioritize the allocation
of grid planning benefits to environmental justice and
economically disadvantaged customers and communities.
Sustain a diverse workforce, supplier procurement base
and, for relevant programs, approved vendor pools.
(G) Cost-effectiveness. Ensure rates reflect cost
savings attributable to grid modernization and
integration of distributed energy resources that allow
the utility to defer or forgo traditional grid
investments that would otherwise be required.
It is the intent of the General Assembly that these
outcomes shall guide the development of metrics even as

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the grid, along with its associated technologies and
policies, evolves. It is also the intent of the General
Assembly that the limitation of total costs to customers
and the promotion of ethical and transparent practices by
utilities, as well as the role that flexible load and
distributed energy resources can play in advancing the
outcomes, be considered in the establishment of metrics.
(3) Metrics Requirements.
(A) Tracking Metrics. Tracking metrics shall
entail a description of the metric, a calculation
method, and a data collection method. The Commission
shall approve tracking metrics that measure
achievement of at least one of the outcomes set forth
in paragraph (2) and are supported by sufficient
stakeholder input. Tracking metrics should measure
outcomes and actual results and projections where
possible.
(B) Performance Metrics. Performance metrics shall
entail a description of the metric, a calculation
method, a data collection method, annual binding
performance targets, and monetary incentives (rewards
or penalties or both, depending on the metric) for
utilities' achievement of or failure to achieve their
performance targets. The Commission shall approve
performance metrics that (i) measure achievement of
the outcomes set forth in paragraph (2); (ii) are

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supported by sufficient stakeholder input; (iii) have
one year of tracking data collected in a consistent
manner and verifiable by an independent evaluator in
order to establish a baseline; and (iv) require an
incentive (reward or penalty or both) to create
improved utility performance. While a single
performance metric may measure achievement of more
than one of the outcomes set forth in paragraph (2),
and such metrics should be valued, the Commission
shall not approve multiple performance metrics that
measure achievement identical or near-identical
results. Performance metrics should measure outcomes
and actual, rather than projected, results where
possible.
(C) Performance targets. For metrics where
progressive improvement is desirable, performance
targets shall increase annually and shall require
utilities to perform beyond "business as usual," as
determined by baseline tracking data and
high-confidence projections. Increases to a target
shall be considered in light of other metrics,
cost-effectiveness, and other factors the Commission
deems appropriate.
(D) Performance incentives. The Commission shall
determine whether and to what extent each performance
metric shall offer a reward, penalty, or both to a

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utility. For metrics where a reward is offered, and
that reward is a cash payment, the reward shall be
calculated as a percentage of net benefits from the
outcome, net of costs to customers. The Commission
shall develop a methodology to calculate net benefits
that includes societal costs and benefits.
In determining the appropriate level of a reward
or penalty, the Commission shall consider: the extent
to which the amount is likely to encourage the utility
to achieve the performance target in the least cost
manner; the value of benefits to customers, the grid,
and the environment from achievement of the
performance target, including in particular benefits
to environmental justice and economically
disadvantaged communities; customer bill
affordability; the utility's revenue requirement; and
other such factors that the Commission deems
appropriate. The consideration of these factors shall
result in an incentive level that ensures benefits
exceed costs for customers.
The rewards or penalties shall be calculated based
on the electric utility achieving performance targets.
In determining the specific rewards or penalties, the
Commission shall give proportionate weight to the
following set of metrics: affordability,
cost-effectiveness, pollution reduction, flexibility,

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customer experience, reliability, and equity.
It is the intent of the General Assembly that over
time the utility's cost of equity shall be
progressively reduced while the opportunity to grow
earnings as a result of achieving performance targets
shall be progressively increased as the Commission
establishes new performance metrics.
(g) Initial Metrics. The Commission shall initiate a
4-month workshop process no later than March 1, 2022 for the
purpose of informing the enactment of metrics. The workshop
shall be facilitated by Staff of the Illinois Commerce
Commission, and shall be organized and facilitated in a manner
that encourages representation from diverse stakeholders,
ensuring equitable opportunities for participation, without
requiring formal intervention or representation by an
attorney. Following the workshop, the Commission shall
establish initial tracking and performance metrics in a
docketed proceeding that shall be filed by the electric
utility by July 2, 2022. The initial tracking and performance
metrics shall be in place for the period of the first
Multi-Year Rate Plan. The proceeding shall conclude, and the
commission shall issue an order in the matter, no later than
April 1, 2023.
Unless the tracking metrics in subparagraph (3) of
paragraph (A) and performance metrics in subparagraph (3) of
paragraph (B) of subsection (f) of this Section are found by

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the Commission during initial metric-setting proceeding to not
meet the requirements set forth in this Section, the
Commission shall approve these metrics, and it shall establish
calculations and goals for the tracking metrics set forth in
subparagraph (3) of paragraph (A) of subsection (f) of this
Section and calculations, targets, and incentives for the
tracking metrics set forth in subparagraph (3) of paragraph
(B) of subsection (f) of this Section. If the Commission finds
that the metrics set forth in subparagraph (3) of paragraph
(A) and subparagraph (3) of paragraph (B) of subsection (f) of
this Section do not meet the requirements set forth in this
Section, then the Commission shall approve substitute metrics.
The Commission may also approve additional tracking and
performance metrics as appropriate if they meet the
requirements set forth in this Section.
Initial Performance Metrics shall include at a minimum,
but not limited to, the following:
(1) system Average Interruption Frequency Index;
(2) customer Average Interruption Duration Index; and
(3) peak load reductions enabled by demand response
programs.
(h) Future Metrics. The Commission shall establish new
tracking and performance metrics in future Annual Performance
Evaluation proceedings to further measure achievement of the
outcomes set forth in paragraph (2) of subsection (f) of this
Section and the other goals and requirements of this Section.

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The Commission shall also evaluate metrics that were
established in prior Annual Performance Evaluation proceedings
under the procedures set forth in subsection (i) to determine
if adjustments are required to improve the likelihood of the
outcomes described in paragraph (2) of subsection (f). For
metrics that were established in prior Annual Performance
Evaluation proceedings and that the Commission elects to
continue, the design of these metrics, including the goals of
tracking metrics and the targets and incentive levels and
structures of performance metrics, may be adjusted pursuant to
the requirements in this Section. The Commission may also
phase out tracking and performance metrics that were
established in prior Annual Performance Evaluation proceedings
if these metrics no longer meet the requirements of this
Section or if they are rendered obsolete by the changing needs
and technology of an evolving grid. Additionally, performance
metrics that no longer require an incentive to create improved
utility performance may become tracking metrics.
In service of the outcomes set forth in paragraph (2) of
subsection (f), it is the intent of the General Assembly that
the Commission in future Annual Performance Evaluation
proceedings establish the tracking metrics and performance
metrics set forth in subparagraph (A) and subparagraph (B) of
paragraph (3) of subsection (f) of this Section when these
metrics would be compliant with the requirements set forth in
this Section.

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(i) Annual Performance Evaluation. On June 1 of each year,
following the approval of the first Multi-Year Rate Plan and
its initial delivery year, the Commission shall open an Annual
Performance Evaluation proceeding to evaluate the utilities'
performance on their metric targets during the delivery year
just completed and accordingly determine rewards or penalties
or both to be reflected in rates in the following calendar
year.
(1) Utility Reporting. On April 1 of each year, prior
to the Annual Performance Evaluation proceeding, each
participating utility shall file a Performance Evaluation
Report with the Commission that includes a description of
and all data supporting how the participating utility
performed under each tracking and performance metric and
an identification of any extraordinary events that
adversely impacted the utility's performance. The
Performance Evaluation Report shall be verified by an
independent evaluator as set out in paragraph (3) of this
subsection (i) and shall include both a report made to the
Commission and a short, public-facing scorecard that makes
this information publicly accessible and easily
understandable. The Commission shall post each scorecard
upon receipt on the Commission's web page in an
easily-accessible location. The format of the report and
the scorecard shall be consistent across utilities and
shall include:

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(A) a list of metrics to which the utility is
subject;
(B) the previous delivery year's calculation
methods and performance on metrics if applicable;
(C) the current delivery year's calculation
methods and a detailed description of the effect of
any differences;
(D) the current-year goals for tracking metrics
and current-year targets for performance metrics;
(E) the current year's performance on metrics
targets;
(F) a summary of the investments and programs
undertaken in order to achieve those metrics targets;
and (G) the annual goals and targets for the remaining
years of the current Multi-year Rate Plan period.
Within 30 days after the Commission's Order in the
utility's Annual Performance Evaluation and Adjustment
filing, the utility shall update the public scorecard with
any changes required by the Commission and the revised
scorecard shall be posted on the Commission's website.
(2) Public Workshops. Preceding each Annual
Performance Evaluation, no later than April 1 each year,
the Commission shall initiate a two-month workshop
process. The workshops shall be facilitated by Staff of
the Illinois Commerce Commission, and shall be organized
and facilitated in a manner that encourages representation

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from diverse stakeholders, ensuring equitable
opportunities for participation, without requiring formal
intervention or representation by an attorney. During
these workshops, each electric utility shall publicly
present its performance on tracking and performance
metrics following the requirements set forth in paragraph
(1) of this subsection (i). The electric utility shall
also explain how it has holistically considered the plans,
programs, tariffs and policies and its Multi-Year
Integrated Grid Plan in order to achieve its metric
targets. Members of the public shall have opportunity for
comment and feedback. A summary of that feedback shall be
provided in an exhibit submitted by Staff of the Illinois
Commerce Commission in the Annual Performance Evaluation.
(3) Independent Evaluation. The electric utility shall
provide for an annual independent evaluation of its
performance on metrics. The independent evaluator shall
review the utility's assumptions, baselines, targets,
calculation methodologies, and other relevant information,
especially ensuring that the utility's data for
establishing baselines matches actual performance, and
shall provide a Report to the Commission in each Annual
Performance Evaluation describing the results. The
independent evaluator shall present this Report as
evidence as a nonparty participant. The independent
evaluator shall be hired through a competitive bidding

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process.
The Commission shall consider the Report of the
independent evaluator in determining the utility's
achievement of performance targets. Discrepancies between
the utility's assumptions, baselines, targets, or
calculations and those of the independent evaluator shall
be closely scrutinized by the Commission. If the
Commission finds that the utility's reported data for any
metric or metrics significantly deviates from the data
reported by the independent evaluator, then the Commission
shall order the utility to revise its data collection and
calculation process within 60 days, with specifications
where appropriate.
(4) Performance Adjustment. The Commission shall,
after notice and hearing in the Annual Performance
Evaluation proceeding, enter an order approving the
utility's performance adjustment based on its achievement
of or failure to achieve its performance targets no later
than December 31 each year. The Commission-approved
penalties or rewards shall be applied beginning with the
next calendar year. Nothing in this Section shall
authorize the Commission to reduce or otherwise obviate
the imposition of financial rewards or penalties for
achieving or failing to achieve one or more of the
utility's performance targets.
(5) Revisions to Metrics. While tracking and

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performance metrics, along with their associated goals,
targets, and incentives, shall not be changed outside of
the Annual Performance Evaluation, the Commission may open
an investigation into the methodology, including
assumptions and calculations, used to measure or quantify
progress toward goals and targets in the Annual
Performance Evaluation at the request of an intervening
party.
(220 ILCS 5/16-111.5)
Sec. 16-111.5. Provisions relating to procurement.
(a) An electric utility that on December 31, 2005 served
at least 100,000 customers in Illinois shall procure power and
energy for its eligible retail customers in accordance with
the applicable provisions set forth in Section 1-75 of the
Illinois Power Agency Act and this Section. Beginning with the
delivery year commencing on June 1, 2017, such electric
utility shall also procure zero emission credits from zero
emission facilities in accordance with the applicable
provisions set forth in Section 1-75 of the Illinois Power
Agency Act, and, for years beginning on or after June 1, 2017,
the utility shall procure renewable energy resources in
accordance with the applicable provisions set forth in Section
1-75 of the Illinois Power Agency Act and this Section.
Beginning with the delivery year commencing June 1, 2023, an
electric utility that, on December 31, 2005, served at least

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3,000,000 customers in Illinois shall procure capacity for its
retail customers in accordance with the applicable provisions
set forth in Section 1-75 of the Illinois Power Agency Act and
this Section. A small multi-jurisdictional electric utility
that on December 31, 2005 served less than 100,000 customers
in Illinois may elect to procure power and energy for all or a
portion of its eligible Illinois retail customers in
accordance with the applicable provisions set forth in this
Section and Section 1-75 of the Illinois Power Agency Act.
This Section shall not apply to a small multi-jurisdictional
utility until such time as a small multi-jurisdictional
utility requests the Illinois Power Agency to prepare a
procurement plan for its eligible retail customers. "Eligible
retail customers" for the purposes of this Section means those
retail customers that purchase power and energy from the
electric utility under fixed-price bundled service tariffs,
other than those retail customers whose service is declared or
deemed competitive under Section 16-113 and those other
customer groups specified in this Section, including
self-generating customers, customers electing hourly pricing,
or those customers who are otherwise ineligible for
fixed-price bundled tariff service. For those customers that
are excluded from the procurement plan's electric supply
service requirements, and the utility shall procure any supply
requirements, including capacity, ancillary services, and
hourly priced energy, in the applicable markets as needed to

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serve those customers, provided that the utility may include
in its procurement plan load requirements for the load that is
associated with those retail customers whose service has been
declared or deemed competitive pursuant to Section 16-113 of
this Act to the extent that those customers are purchasing
power and energy during one of the transition periods
identified in subsection (b) of Section 16-113 of this Act.
(b) A procurement plan shall be prepared for each electric
utility consistent with the applicable requirements of the
Illinois Power Agency Act and this Section. For purposes of
this Section, Illinois electric utilities that are affiliated
by virtue of a common parent company are considered to be a
single electric utility. Small multi-jurisdictional utilities
may request a procurement plan for a portion of or all of its
Illinois load. Each procurement plan shall analyze the
projected balance of supply and demand for those retail
customers to be included in the plan's electric supply service
requirements over a 5-year period, with the first planning
year beginning on June 1 of the year following the year in
which the plan is filed. The plan shall specifically identify
the carbon-free capacity to be procured, as described in
Section 1-75 of the Illinois Power Agency Act, and the
wholesale products to be procured following plan approval, and
shall follow all the requirements set forth in the Public
Utilities Act and all applicable State and federal laws,
statutes, rules, or regulations, as well as Commission orders.

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Nothing in this Section precludes consideration of contracts
longer than 5 years and related forecast data. Unless
specified otherwise in this Section, in the procurement plan
or in the implementing tariff, any procurement occurring in
accordance with this plan shall be competitively bid through a
request for proposals process. Approval and implementation of
the procurement plan shall be subject to review and approval
by the Commission according to the provisions set forth in
this Section. A procurement plan shall include each of the
following components:
(1) Hourly load analysis. This analysis shall include:
(i) multi-year historical analysis of hourly
loads;
(ii) switching trends and competitive retail
market analysis;
(iii) known or projected changes to future loads;
and
(iv) growth forecasts by customer class.
(2) Analysis of the impact of any demand side and
renewable energy initiatives. This analysis shall include:
(i) the impact of demand response programs and
energy efficiency programs, both current and
projected; for small multi-jurisdictional utilities,
the impact of demand response and energy efficiency
programs approved pursuant to Section 8-408 of this
Act, both current and projected; and

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(ii) supply side needs that are projected to be
offset by purchases of renewable energy resources, if
any.
(3) A plan for meeting the expected load requirements
that will not be met through preexisting contracts. This
plan shall include:
(i) definitions of the different Illinois retail
customer classes for which supply is being purchased;
(ii) the proposed mix of demand-response products
for which contracts will be executed during the next
year. For small multi-jurisdictional electric
utilities that on December 31, 2005 served fewer than
100,000 customers in Illinois, these shall be defined
as demand-response products offered in an energy
efficiency plan approved pursuant to Section 8-408 of
this Act. The cost-effective demand-response measures
shall be procured whenever the cost is lower than
procuring comparable capacity products, provided that
such products shall:
(A) be procured by a demand-response provider
from those retail customers included in the plan's
electric supply service requirements;
(B) at least satisfy the demand-response
requirements of the regional transmission
organization market in which the utility's service
territory is located, including, but not limited

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to, any applicable capacity or dispatch
requirements;
(C) provide for customers' participation in
the stream of benefits produced by the
demand-response products;
(D) provide for reimbursement by the
demand-response provider of the utility for any
costs incurred as a result of the failure of the
supplier of such products to perform its
obligations thereunder; and
(E) meet the same credit requirements as apply
to suppliers of capacity, in the applicable
regional transmission organization market;
(iii) monthly forecasted system supply
requirements, including expected minimum, maximum, and
average values for the planning period;
(iv) the proposed mix and selection of standard
wholesale products for which contracts will be
executed during the next year, separately or in
combination, to meet that portion of its load
requirements not met through pre-existing contracts,
including, but not limited to, monthly 5 x 16 peak
period block energy, monthly off-peak wrap energy,
monthly 7 x 24 energy, annual 5 x 16 energy, annual
off-peak wrap energy, annual 7 x 24 energy, monthly
capacity, annual capacity, peak load capacity

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obligations, capacity purchase plan, and ancillary
services;
(v) proposed term structures for each wholesale
product type included in the proposed procurement plan
portfolio of products; and
(vi) an assessment of the price risk, load
uncertainty, and other factors that are associated
with the proposed procurement plan; this assessment,
to the extent possible, shall include an analysis of
the following factors: contract terms, time frames for
securing products or services, fuel costs, weather
patterns, transmission costs, market conditions, and
the governmental regulatory environment; the proposed
procurement plan shall also identify alternatives for
those portfolio measures that are identified as having
significant price risk; and .
(vii) the amount of capacity procured for each
year through the procurements in subsection (k) of
Section 1-75 of the Illinois Power Agency Act and this
Section, and the amount of capacity to be procured
from each procurement during the next year.
(4) Proposed procedures for balancing loads. The
procurement plan shall include, for load requirements
included in the procurement plan, the process for (i)
hourly balancing of supply and demand and (ii) the
criteria for portfolio re-balancing in the event of

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significant shifts in load.
(5) Long-Term Renewable Resources Procurement Plan.
The Agency shall prepare a long-term renewable resources
procurement plan for the procurement of renewable energy
credits under Sections 1-56 and 1-75 of the Illinois Power
Agency Act for delivery beginning in the 2017 delivery
year.
(i) The initial long-term renewable resources
procurement plan and all subsequent revisions shall be
subject to review and approval by the Commission. For
the purposes of this Section, "delivery year" has the
same meaning as in Section 1-10 of the Illinois Power
Agency Act. For purposes of this Section, "Agency"
shall mean the Illinois Power Agency.
(ii) The long-term renewable resources planning
process shall be conducted as follows:
(A) Electric utilities shall provide a range
of load forecasts to the Illinois Power Agency
within 45 days of the Agency's request for
forecasts, which request shall specify the length
and conditions for the forecasts including, but
not limited to, the quantity of distributed
generation expected to be interconnected for each
year.
(B) The Agency shall publish for comment the
initial long-term renewable resources procurement

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plan no later than 120 days after the effective
date of this amendatory Act of the 99th General
Assembly and shall review, and may revise, the
plan at least every 2 years thereafter. To the
extent practicable, the Agency shall review and
propose any revisions to the long-term renewable
energy resources procurement plan in conjunction
with the Agency's other planning and approval
processes conducted under this Section. The
initial long-term renewable resources procurement
plan shall:
(aa) Identify the procurement programs and
competitive procurement events consistent with
the applicable requirements of the Illinois
Power Agency Act and shall be designed to
achieve the goals set forth in subsection (c)
of Section 1-75 of that Act.
(bb) Include a schedule for procurements
for renewable energy credits from
utility-scale wind projects, utility-scale
solar projects, and brownfield site
photovoltaic projects consistent with
subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois
Power Agency Act.
(cc) Identify the process whereby the

HB0804 Engrossed - 838 - LRB102 10881 SPS 16211 b
Agency will submit to the Commission for
review and approval the proposed contracts to
implement the programs required by such plan.
Copies of the initial long-term renewable
resources procurement plan and all subsequent
revisions shall be posted and made publicly
available on the Agency's and Commission's
websites, and copies shall also be provided to
each affected electric utility. An affected
utility and other interested parties shall have 45
days following the date of posting to provide
comment to the Agency on the initial long-term
renewable resources procurement plan and all
subsequent revisions. All comments submitted to
the Agency shall be specific, supported by data or
other detailed analyses, and, if objecting to all
or a portion of the procurement plan, accompanied
by specific alternative wording or proposals. All
comments shall be posted on the Agency's and
Commission's websites. During this 45-day comment
period, the Agency shall hold at least one public
hearing within each utility's service area that is
subject to the requirements of this paragraph (5)
for the purpose of receiving public comment.
Within 21 days following the end of the 45-day
review period, the Agency may revise the long-term

HB0804 Engrossed - 839 - LRB102 10881 SPS 16211 b
renewable resources procurement plan based on the
comments received and shall file the plan with the
Commission for review and approval.
(C) Within 14 days after the filing of the
initial long-term renewable resources procurement
plan or any subsequent revisions, any person
objecting to the plan may file an objection with
the Commission. Within 21 days after the filing of
the plan, the Commission shall determine whether a
hearing is necessary. The Commission shall enter
its order confirming or modifying the initial
long-term renewable resources procurement plan or
any subsequent revisions within 120 days after the
filing of the plan by the Illinois Power Agency.
(D) The Commission shall approve the initial
long-term renewable resources procurement plan and
any subsequent revisions, including expressly the
forecast used in the plan and taking into account
that funding will be limited to the amount of
revenues actually collected by the utilities, if
the Commission determines that the plan will
reasonably and prudently accomplish the
requirements of Section 1-56 and subsection (c) of
Section 1-75 of the Illinois Power Agency Act. The
Commission shall also approve the process for the
submission, review, and approval of the proposed

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contracts to procure renewable energy credits or
implement the programs authorized by the
Commission pursuant to a long-term renewable
resources procurement plan approved under this
Section.
(iii) The Agency or third parties contracted by
the Agency shall implement all programs authorized by
the Commission in an approved long-term renewable
resources procurement plan without further review and
approval by the Commission. Third parties shall not
begin implementing any programs or receive any payment
under this Section until the Commission has approved
the contract or contracts under the process authorized
by the Commission in item (D) of subparagraph (ii) of
paragraph (5) of this subsection (b) and the third
party and the Agency or utility, as applicable, have
executed the contract. For those renewable energy
credits subject to procurement through a competitive
bid process under the plan or under the initial
forward procurements for wind and solar resources
described in subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois Power
Agency Act, the Agency shall follow the procurement
process specified in the provisions relating to
electricity procurement in subsections (e) through (i)
of this Section.

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(iv) An electric utility shall recover its costs
associated with the procurement of renewable energy
credits under this Section through an automatic
adjustment clause tariff under subsection (k) of
Section 16-108 of this Act. A utility shall not be
required to advance any payment or pay any amounts
under this Section that exceed the actual amount of
revenues collected by the utility under paragraph (6)
of subsection (c) of Section 1-75 of the Illinois
Power Agency Act and subsection (k) of Section 16-108
of this Act, and contracts executed under this Section
shall expressly incorporate this limitation.
(v) For the public interest, safety, and welfare,
the Agency and the Commission may adopt rules to carry
out the provisions of this Section on an emergency
basis immediately following the effective date of this
amendatory Act of the 99th General Assembly.
(vi) On or before July 1 of each year, the
Commission shall hold an informal hearing for the
purpose of receiving comments on the prior year's
procurement process and any recommendations for
change.
(6) Capacity Procurement Plan.
(i) No later than 90 days after notice by a public
utility of election of the Fixed Resource Requirement
Alternative and Illinois Commerce Commission approval

HB0804 Engrossed - 842 - LRB102 10881 SPS 16211 b
of same, the Illinois Power Agency shall publish for
public comment a draft Capacity Procurement Plan
pursuant to subsection (k) of Section 1-75 of the
Illinois Power Agency Act. The Agency shall conduct at
least one public workshop to elicit input regarding
development of the Plan. The Agency shall provide 60
days for public comment on the draft Plan, and within
30 days after the deadline for comment shall submit
the Plan to the Illinois Commerce Commission.
(ii) After providing appropriate opportunities for
objection and hearing, the Commission shall enter its
order approving or modifying the Plan within 60 days
after the filing of the plan by the Illinois Power
Agency. The Commission shall approve the Plan if it
meets the objectives set forth in subsection (k) of
Section 1-75 of the Illinois Power Agency Act. If the
Plan does not meet those objectives, the Commission
shall modify the Plan or shall provide specific
direction to the Agency to modify and resubmit the
Plan within 30 days.
(c) The procurement process set forth in Section 1-75 of
the Illinois Power Agency Act and subsection (e) of this
Section shall be administered by a procurement administrator
and monitored by a procurement monitor.
(1) The procurement administrator shall:
(i) design the final procurement process in

HB0804 Engrossed - 843 - LRB102 10881 SPS 16211 b
accordance with Section 1-75 of the Illinois Power
Agency Act and subsection (e) of this Section
following Commission approval of the procurement plan;
(ii) develop benchmarks in accordance with
subsection (e)(3) to be used to evaluate bids; these
benchmarks shall be submitted to the Commission for
review and approval on a confidential basis prior to
the procurement event;
(iii) serve as the interface between the electric
utility and suppliers;
(iv) manage the bidder pre-qualification and
registration process;
(v) obtain the electric utilities' agreement to
the final form of all supply contracts and credit
collateral agreements;
(vi) administer the request for proposals process;
(vii) have the discretion to negotiate to
determine whether bidders are willing to lower the
price of bids that meet the benchmarks approved by the
Commission; any post-bid negotiations with bidders
shall be limited to price only and shall be completed
within 24 hours after opening the sealed bids and
shall be conducted in a fair and unbiased manner; in
conducting the negotiations, there shall be no
disclosure of any information derived from proposals
submitted by competing bidders; if information is

HB0804 Engrossed - 844 - LRB102 10881 SPS 16211 b
disclosed to any bidder, it shall be provided to all
competing bidders;
(viii) maintain confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(ix) submit a confidential report to the
Commission recommending acceptance or rejection of
bids;
(x) notify the utility of contract counterparties
and contract specifics; and
(xi) administer related contingency procurement
events.
(2) The procurement monitor, who shall be retained by
the Commission, shall:
(i) monitor interactions among the procurement
administrator, suppliers, and utility;
(ii) monitor and report to the Commission on the
progress of the procurement process;
(iii) provide an independent confidential report
to the Commission regarding the results of the
procurement event;
(iv) assess compliance with the procurement plans
approved by the Commission for each utility that on
December 31, 2005 provided electric service to at
least 100,000 customers in Illinois and for each small
multi-jurisdictional utility that on December 31, 2005

HB0804 Engrossed - 845 - LRB102 10881 SPS 16211 b
served less than 100,000 customers in Illinois;
(v) preserve the confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(vi) provide expert advice to the Commission and
consult with the procurement administrator regarding
issues related to procurement process design, rules,
protocols, and policy-related matters; and
(vii) consult with the procurement administrator
regarding the development and use of benchmark
criteria, standard form contracts, credit policies,
and bid documents.
(d) Except as provided in subsection (j), the planning
process shall be conducted as follows:
(1) Beginning in 2008, each Illinois utility procuring
power pursuant to this Section shall annually provide a
range of load forecasts to the Illinois Power Agency by
July 15 of each year, or such other date as may be required
by the Commission or Agency. The load forecasts shall
cover the 5-year procurement planning period for the next
procurement plan and shall include hourly data
representing a high-load, low-load, and expected-load
scenario for the load of those retail customers included
in the plan's electric supply service requirements. The
utility shall provide supporting data and assumptions for
each of the scenarios.

HB0804 Engrossed - 846 - LRB102 10881 SPS 16211 b
(2) Beginning in 2008, the Illinois Power Agency shall
prepare a procurement plan by August 15th of each year, or
such other date as may be required by the Commission. The
procurement plan shall identify the portfolio of
demand-response and power and energy products to be
procured. Cost-effective demand-response measures shall be
procured as set forth in item (iii) of subsection (b) of
this Section. Copies of the procurement plan shall be
posted and made publicly available on the Agency's and
Commission's websites, and copies shall also be provided
to each affected electric utility. An affected utility
shall have 30 days following the date of posting to
provide comment to the Agency on the procurement plan.
Other interested entities also may comment on the
procurement plan. All comments submitted to the Agency
shall be specific, supported by data or other detailed
analyses, and, if objecting to all or a portion of the
procurement plan, accompanied by specific alternative
wording or proposals. All comments shall be posted on the
Agency's and Commission's websites. During this 30-day
comment period, the Agency shall hold at least one public
hearing within each utility's service area for the purpose
of receiving public comment on the procurement plan.
Within 14 days following the end of the 30-day review
period, the Agency shall revise the procurement plan as
necessary based on the comments received and file the

HB0804 Engrossed - 847 - LRB102 10881 SPS 16211 b
procurement plan with the Commission and post the
procurement plan on the websites.
(3) Within 5 days after the filing of the procurement
plan, any person objecting to the procurement plan shall
file an objection with the Commission. Within 10 days
after the filing, the Commission shall determine whether a
hearing is necessary. The Commission shall enter its order
confirming or modifying the procurement plan within 90
days after the filing of the procurement plan by the
Illinois Power Agency.
(4) The Commission shall approve the procurement plan,
including expressly the forecast used in the procurement
plan, if the Commission determines that it will 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.
(e) The procurement process shall include each of the
following components:
(1) Solicitation, pre-qualification, and registration
of bidders. The procurement administrator shall
disseminate information to potential bidders to promote a
procurement event, notify potential bidders that the
procurement administrator may enter into a post-bid price
negotiation with bidders that meet the applicable
benchmarks, provide supply requirements, and otherwise

HB0804 Engrossed - 848 - LRB102 10881 SPS 16211 b
explain the competitive procurement process. In addition
to such other publication as the procurement administrator
determines is appropriate, this information shall be
posted on the Illinois Power Agency's and the Commission's
websites. The procurement administrator shall also
administer the prequalification process, including
evaluation of credit worthiness, compliance with
procurement rules, and agreement to the standard form
contract developed pursuant to paragraph (2) of this
subsection (e). The procurement administrator shall then
identify and register bidders to participate in the
procurement event.
(2) Standard contract forms and credit terms and
instruments. The procurement administrator, in
consultation with the utilities, the Commission, and other
interested parties and subject to Commission oversight,
shall develop and provide standard contract forms for the
supplier contracts that meet generally accepted industry
practices. Standard credit terms and instruments that meet
generally accepted industry practices shall be similarly
developed. The procurement administrator shall make
available to the Commission all written comments it
receives on the contract forms, credit terms, or
instruments. If the procurement administrator cannot reach
agreement with the applicable electric utility as to the
contract terms and conditions, the procurement

HB0804 Engrossed - 849 - LRB102 10881 SPS 16211 b
administrator must notify the Commission of any disputed
terms and the Commission shall resolve the dispute. The
terms of the contracts shall not be subject to negotiation
by winning bidders, and the bidders must agree to the
terms of the contract in advance so that winning bids are
selected solely on the basis of price.
(3) Establishment of a market-based price benchmark.
As part of the development of the procurement process, the
procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor, shall establish benchmarks for evaluating the
final prices in the contracts for each of the products
that will be procured through the procurement process. The
benchmarks shall be based on price data for similar
products for the same delivery period and same delivery
hub, or other delivery hubs after adjusting for that
difference. The price benchmarks may also be adjusted to
take into account differences between the information
reflected in the underlying data sources and the specific
products and procurement process being used to procure
power for the Illinois utilities. The benchmarks shall be
confidential but shall be provided to, and will be subject
to Commission review and approval, prior to a procurement
event.
(4) Request for proposals competitive procurement
process. The procurement administrator shall design and

HB0804 Engrossed - 850 - LRB102 10881 SPS 16211 b
issue a request for proposals to supply electricity in
accordance with each utility's procurement plan, as
approved by the Commission. The request for proposals
shall set forth a procedure for sealed, binding commitment
bidding with pay-as-bid settlement, and provision for
selection of bids on the basis of price.
(5) A plan for implementing contingencies in the event
of supplier default or failure of the procurement process
to fully meet the expected load requirement due to
insufficient supplier participation, Commission rejection
of results, or any other cause.
(i) Event of supplier default: In the event of
supplier default, the utility shall review the
contract of the defaulting supplier to determine if
the amount of supply is 200 megawatts or greater, and
if there are more than 60 days remaining of the
contract term. If both of these conditions are met,
and the default results in termination of the
contract, the utility shall immediately notify the
Illinois Power Agency that a request for proposals
must be issued to procure replacement power, and the
procurement administrator shall run an additional
procurement event. If the contracted supply of the
defaulting supplier is less than 200 megawatts or
there are less than 60 days remaining of the contract
term, the utility shall procure power and energy from

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the applicable regional transmission organization
market, including ancillary services, capacity, and
day-ahead or real time energy, or both, for the
duration of the contract term to replace the
contracted supply; provided, however, that if a needed
product is not available through the regional
transmission organization market it shall be purchased
from the wholesale market.
(ii) Failure of the procurement process to fully
meet the expected load requirement: If the procurement
process fails to fully meet the expected load
requirement due to insufficient supplier participation
or due to a Commission rejection of the procurement
results, the procurement administrator, the
procurement monitor, and the Commission staff shall
meet within 10 days to analyze potential causes of low
supplier interest or causes for the Commission
decision. If changes are identified that would likely
result in increased supplier participation, or that
would address concerns causing the Commission to
reject the results of the prior procurement event, the
procurement administrator may implement those changes
and rerun the request for proposals process according
to a schedule determined by those parties and
consistent with Section 1-75 of the Illinois Power
Agency Act and this subsection. In any event, a new

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request for proposals process shall be implemented by
the procurement administrator within 90 days after the
determination that the procurement process has failed
to fully meet the expected load requirement.
(iii) In all cases where there is insufficient
supply provided under contracts awarded through the
procurement process to fully meet the electric
utility's load requirement, the utility shall meet the
load requirement by procuring power and energy from
the applicable regional transmission organization
market, including ancillary services, capacity, and
day-ahead or real time energy, or both; provided,
however, that if a needed product is not available
through the regional transmission organization market
it shall be purchased from the wholesale market.
(6) The procurement process described in this
subsection is exempt from the requirements of the Illinois
Procurement Code, pursuant to Section 20-10 of that Code.
(f) Within 2 business days after opening the sealed bids,
the procurement administrator shall submit a confidential
report to the Commission. The report shall contain the results
of the bidding for each of the products along with the
procurement administrator's recommendation for the acceptance
and rejection of bids based on the price benchmark criteria
and other factors observed in the process. The procurement
monitor also shall submit a confidential report to the

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Commission within 2 business days after opening the sealed
bids. The report shall contain the procurement monitor's
assessment of bidder behavior in the process as well as an
assessment of the procurement administrator's compliance with
the procurement process and rules. The Commission shall review
the confidential reports submitted by the procurement
administrator and procurement monitor, and shall accept or
reject the recommendations of the procurement administrator
within 2 business days after receipt of the reports.
(g) Within 3 business days after the Commission decision
approving the results of a procurement event, the utility
shall enter into binding contractual arrangements with the
winning suppliers using the standard form contracts; except
that the utility shall not be required either directly or
indirectly to execute the contracts if a tariff that is
consistent with subsection (l) of this Section has not been
approved and placed into effect for that utility.
(h) The names of the successful bidders and the load
weighted average of the winning bid prices for each contract
type and for each contract term shall be made available to the
public at the time of Commission approval of a procurement
event. The Commission, the procurement monitor, the
procurement administrator, the Illinois Power Agency, and all
participants in the procurement process shall maintain the
confidentiality of all other supplier and bidding information
in a manner consistent with all applicable laws, rules,

HB0804 Engrossed - 854 - LRB102 10881 SPS 16211 b
regulations, and tariffs. Confidential information, including
the confidential reports submitted by the procurement
administrator and procurement monitor pursuant to subsection
(f) of this Section, shall not be made publicly available and
shall not be discoverable by any party in any proceeding,
absent a compelling demonstration of need, nor shall those
reports be admissible in any proceeding other than one for law
enforcement purposes.
(i) Within 2 business days after a Commission decision
approving the results of a procurement event or such other
date as may be required by the Commission from time to time,
the utility shall file for informational purposes with the
Commission its actual or estimated retail supply charges, as
applicable, by customer supply group reflecting the costs
associated with the procurement and computed in accordance
with the tariffs filed pursuant to subsection (l) of this
Section and approved by the Commission.
(j) Within 60 days following August 28, 2007 (the
effective date of Public Act 95-481), each electric utility
that on December 31, 2005 provided electric service to at
least 100,000 customers in Illinois shall prepare and file
with the Commission an initial procurement plan, which shall
conform in all material respects to the requirements of the
procurement plan set forth in subsection (b); provided,
however, that the Illinois Power Agency Act shall not apply to
the initial procurement plan prepared pursuant to this

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subsection. The initial procurement plan shall identify the
portfolio of power and energy products to be procured and
delivered for the period June 2008 through May 2009, and shall
identify the proposed procurement administrator, who shall
have the same experience and expertise as is required of a
procurement administrator hired pursuant to Section 1-75 of
the Illinois Power Agency Act. Copies of the procurement plan
shall be posted and made publicly available on the
Commission's website. The initial procurement plan may include
contracts for renewable resources that extend beyond May 2009.
(i) Within 14 days following filing of the initial
procurement plan, any person may file a detailed objection
with the Commission contesting the procurement plan
submitted by the electric utility. All objections to the
electric utility's plan shall be specific, supported by
data or other detailed analyses. The electric utility may
file a response to any objections to its procurement plan
within 7 days after the date objections are due to be
filed. Within 7 days after the date the utility's response
is due, the Commission shall determine whether a hearing
is necessary. If it determines that a hearing is
necessary, it shall require the hearing to be completed
and issue an order on the procurement plan within 60 days
after the filing of the procurement plan by the electric
utility.
(ii) The order shall approve or modify the procurement

HB0804 Engrossed - 856 - LRB102 10881 SPS 16211 b
plan, approve an independent procurement administrator,
and approve or modify the electric utility's tariffs that
are proposed with the initial procurement plan. The
Commission shall approve the procurement plan if the
Commission determines that it will 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.
(k) (Blank).
(k-5) (Blank).
(l) An electric utility shall recover its costs incurred
under this Section, including, but not limited to, the costs
of procuring power and energy demand-response resources under
this Section. The utility shall file with the initial
procurement plan its proposed tariffs through which its costs
of procuring power that are incurred pursuant to a
Commission-approved procurement plan and those other costs
identified in this subsection (l), will be recovered. The
tariffs shall include a formula rate or charge designed to
pass through both the costs incurred by the utility in
procuring a supply of electric power and energy for the
applicable customer classes with no mark-up or return on the
price paid by the utility for that supply, plus any just and
reasonable costs that the utility incurs in arranging and
providing for the supply of electric power and energy. The
formula rate or charge shall also contain provisions that

HB0804 Engrossed - 857 - LRB102 10881 SPS 16211 b
ensure that its application does not result in over or under
recovery due to changes in customer usage and demand patterns,
and that provide for the correction, on at least an annual
basis, of any accounting errors that may occur. A utility
shall recover through the tariff all reasonable costs incurred
to implement or comply with any procurement plan that is
developed and put into effect pursuant to Section 1-75 of the
Illinois Power Agency Act and this Section, including any fees
assessed by the Illinois Power Agency, costs associated with
load balancing, and contingency plan costs. The electric
utility shall also recover its full costs of procuring
electric supply for which it contracted before the effective
date of this Section in conjunction with the provision of full
requirements service under fixed-price bundled service tariffs
subsequent to December 31, 2006. All such costs shall be
deemed to have been prudently incurred. The pass-through
tariffs that are filed and approved pursuant to this Section
shall not be subject to review under, or in any way limited by,
Section 16-111(i) of this Act. All of the costs incurred by the
electric utility associated with the purchase of zero emission
credits in accordance with subsection (d-5) of Section 1-75 of
the Illinois Power Agency Act and, beginning June 1, 2017, all
of the costs incurred by the electric utility associated with
the purchase of renewable energy resources in accordance with
Sections 1-56 and 1-75 of the Illinois Power Agency Act, shall
be recovered through the electric utility's tariffed charges

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applicable to all of its retail customers, as specified in
subsection (k) of Section 16-108 of this Act, and shall not be
recovered through the electric utility's tariffed charges for
electric power and energy supply to its eligible retail
customers.
(m) The Commission has the authority to adopt rules to
carry out the provisions of this Section. For the public
interest, safety, and welfare, the Commission also has
authority to adopt rules to carry out the provisions of this
Section on an emergency basis immediately following August 28,
2007 (the effective date of Public Act 95-481).
(n) Notwithstanding any other provision of this Act, any
affiliated electric utilities that submit a single procurement
plan covering their combined needs may procure for those
combined needs in conjunction with that plan, and may enter
jointly into power supply contracts, purchases, and other
procurement arrangements, and allocate capacity and energy and
cost responsibility therefor among themselves in proportion to
their requirements.
(o) On or before June 1 of each year, the Commission shall
hold an informal hearing for the purpose of receiving comments
on the prior year's procurement process and any
recommendations for change.
(p) An electric utility subject to this Section may
propose to invest, lease, own, or operate an electric
generation facility as part of its procurement plan, provided

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the utility demonstrates that such facility is the least-cost
option to provide electric service to those retail customers
included in the plan's electric supply service requirements.
If the facility is shown to be the least-cost option and is
included in a procurement plan prepared in accordance with
Section 1-75 of the Illinois Power Agency Act and this
Section, then the electric utility shall make a filing
pursuant to Section 8-406 of this Act, and may request of the
Commission any statutory relief required thereunder. If the
Commission grants all of the necessary approvals for the
proposed facility, such supply shall thereafter be considered
as a pre-existing contract under subsection (b) of this
Section. The Commission shall in any order approving a
proposal under this subsection specify how the utility will
recover the prudently incurred costs of investing in, leasing,
owning, or operating such generation facility through just and
reasonable rates charged to those retail customers included in
the plan's electric supply service requirements. Cost recovery
for facilities included in the utility's procurement plan
pursuant to this subsection shall not be subject to review
under or in any way limited by the provisions of Section
16-111(i) of this Act. Nothing in this Section is intended to
prohibit a utility from filing for a fuel adjustment clause as
is otherwise permitted under Section 9-220 of this Act.
(q) If the Illinois Power Agency filed with the
Commission, under Section 16-111.5 of this Act, its proposed

HB0804 Engrossed - 860 - LRB102 10881 SPS 16211 b
procurement plan for the period commencing June 1, 2017, and
the Commission has not yet entered its final order approving
the plan on or before the effective date of this amendatory Act
of the 99th General Assembly, then the Illinois Power Agency
shall file a notice of withdrawal with the Commission, after
the effective date of this amendatory Act of the 99th General
Assembly, to withdraw the proposed procurement of renewable
energy resources to be approved under the plan, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices using funds previously
collected from electric utilities' retail customers that take
service pursuant to electric utilities' hourly pricing tariff
or tariffs and, for an electric utility that serves less than
100,000 retail customers in the State, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices. Upon receipt of the
notice, the Commission shall enter an order that approves the
withdrawal of the proposed procurement of renewable energy
resources from the plan. The initially proposed procurement of
renewable energy resources shall not be approved or be the
subject of any further hearing, investigation, proceeding, or
order of any kind.
This amendatory Act of the 99th General Assembly preempts
and supersedes any order entered by the Commission that
approved the Illinois Power Agency's procurement plan for the
period commencing June 1, 2017, to the extent it is

HB0804 Engrossed - 861 - LRB102 10881 SPS 16211 b
inconsistent with the provisions of this amendatory Act of the
99th General Assembly. To the extent any previously entered
order approved the procurement of renewable energy resources,
the portion of that order approving the procurement shall be
void, other than the procurement of renewable energy credits
from distributed renewable energy generation devices using
funds previously collected from electric utilities' retail
customers that take service under electric utilities' hourly
pricing tariff or tariffs and, for an electric utility that
serves less than 100,000 retail customers in the State, other
than the procurement of renewable energy credits for
distributed renewable energy generation devices.
(Source: P.A. 99-906, eff. 6-1-17.)
(220 ILCS 5/16-111.10 new)
Sec. 16-111.10. Equitable Energy Upgrade Program.
(a) The General Assembly finds and declares that Illinois
homes and businesses can contribute to the creation of a clean
energy economy, conservation of natural resources, and
reliability of the electricity grid through the installation
of cost-effective renewable energy generation, energy
efficiency, and energy storage systems. Further, a large
portion of Illinois residents and businesses that would
benefit from the installation of energy efficiency, storage,
and renewable energy generation systems are unable to purchase
systems due to capital or credit barriers. This State should

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pursue options to enable many more Illinoisans to access the
health, environmental, and financial benefits of new clean
energy technology.
(b) As used in this Section:
"Commission" means the Illinois Commerce Commission.
"Energy project" means renewable energy generation
systems, including solar projects, energy efficiency upgrades,
energy storage systems, or any combination thereof.
"The Fund" means the Clean Energy Jobs and Justice Fund
established in the Illinois Clean Energy Jobs and Justice Fund
Act.
"Program" means the Equitable Energy Upgrade Program
established under subsection (c).
"Utility" means electric utilities providing services
under this Act.
(c) The Illinois Commerce Commission shall open an
investigation into and direct all electric utilities in this
State to adopt an Equitable Energy Upgrade Program that
permits customers to finance the construction of energy
projects through an optional tariff payable directly through
their utility bill, modeled after the Pay As You Save system,
developed by the Energy Efficiency Institute. The Program
model shall enable utilities to offer to make investments in
energy projects to customer properties with low-cost capital
and use an opt-in tariff to recover the costs. The Program
shall be designed to provide customers with immediate

HB0804 Engrossed - 863 - LRB102 10881 SPS 16211 b
financial savings if they choose to participate. The Program
shall allow residential electric utility customers that own
the property, or renters that have permission of the property
owner, for which they subscribe to utility service to agree to
the installation of an energy project. The Program shall
ensure:
(1) eligible projects do not require upfront payments;
however, customers may pay down the costs for projects
with a payment to the installing contractor in order to
qualify projects that would otherwise require upfront
payments;
(2) eligible projects have sufficient estimated
savings and estimated lifespan to produce significant,
immediate net savings;
(3) participants shall agree the utility can recover
its costs for the projects at their location by paying for
the project through an optional tariff directly through
the participant's electricity bill, allowing participants
to benefit from installation of energy projects without
traditional loans; and
(4) accessibility by lower-income residents and
environmental justice community residents.
(d) Program rollout. The Commission shall establish
Program guidelines with the anticipated schedule of Program
availability as follows:
(1) Year 1. Beginning in the first year of operation,

HB0804 Engrossed - 864 - LRB102 10881 SPS 16211 b
each utility is required to obtain low-cost capital of at
least $20,000,000 annually for investments in energy
projects.
(2) Year 2. Beginning in the second year of operation,
each utility is required to obtain low-cost capital for
investments in energy projects of at least $40,000,000
annually.
(3) Year 3. Beginning in the third year of operation,
each utility is required to obtain low-cost capital for
investments in as many systems as customers demand,
subject to available capital provided by the utility,
State, or other lenders.
(e) In the design of the Equitable Energy Upgrade Program,
the Commission shall:
(1) Within 270 days after the effective date of this
amendatory Act of the 102nd General Assembly, convene a
workshop during which interested participants may discuss
issues and submit comments related to the Program.
(2) Establish Program guidelines for implementation of
the Program in accordance with Pay As You Save Essential
Elements and Minimum Program Requirements that electric
utilities must abide by when implementing the Program.
Program guidelines established by the Commission shall
include the following elements:
(A) Capital funds. The Commission shall establish
conditions under which utilities secure capital to

HB0804 Engrossed - 865 - LRB102 10881 SPS 16211 b
fund the energy projects. The Commission may allow
utilities to raise capital independently, work with
third-party lenders to secure the capital for
participants, or a combination thereof. Any process
the Commission approves must use a market mechanism to
identify the least costly sources of capital funds so
as to pass on maximum savings to participants. The
State of Illinois or the Clean Energy Jobs and Justice
Fund may also choose to provide capital for this
Program.
(B) Customer protections. Customer protection
guidelines should be designed consistent with PAYS
Essential Elements and Minimum Program Requirements.
(C) Energy project vendors. The Commission shall
establish conditions by which utilities may connect
Program participants to energy project vendors. In
setting conditions for connection, the Commission may
prioritize vendors that have a history of good
relations with the State including vendors that have
hired participants from State-created job training
programs.
(D) Guarantee that conservative estimates of
financial savings will immediately and significantly
exceed Program costs for Program participants.
(f) Within 120 days after the Commission releases the
Program conditions established under this Section, each

HB0804 Engrossed - 866 - LRB102 10881 SPS 16211 b
utility subject to the requirements of this Section shall
submit an informational filing to the Commission that
describes its plan for implementing the provisions of this
Section. If the Commission finds that the submission does not
properly comply with the statutory or regulatory requirements
of the Program, the Commission may require that the utility
make modifications to its filing.
(g) An independent process evaluation shall be conducted
after one year of the Program's operation. An independent
impact evaluation shall be conducted after 3 years of
operation, excluding one-time startup costs and results from
the first 12 months of the Program. The Commission shall
convene an advisory council of stakeholders, including
representation of low-income and environmental justice
community members to make recommendations in response to the
findings of the independent evaluation.
(h) The Equitable Energy Upgrade Program shall be designed
using PAYS system guidelines to be cost-effective for
customers. Only projects that are deemed to be cost-effective
and can be reasonably expected to ensure customer savings are
eligible for funding through the Program, unless, as specified
in paragraph (1) of subsection (c), customers able to make
upfront copayments to installers buy down the cost of projects
so they can be deemed cost-effective.
(i) Eligible customers must be:
(1) property renters with permission of the property

HB0804 Engrossed - 867 - LRB102 10881 SPS 16211 b
owner; or
(2) property owners.
(j) Calculation of project cost-effectiveness shall be
based upon PAYS system requirements.
(1) The calculation of cost-effectiveness must be
conducted by an objective process approved by the
Commission and based on rates in effect at the time of
installation.
(2) A project shall be considered cost-effective only
if it is estimated to produce significant immediate net
savings, not counting copayments voluntarily made by
customers. The Commission may establish guidelines by
which this required savings is estimated.
(k) The Equitable Energy Upgrade Program should be modeled
after the Pay As You Save system, by which Program
participants finance energy projects using the savings that
the energy project creates with a tariffed on-bill program.
Eligible projects shall not create personal debt for the
customer, result in a lien in the event of nonpayment, or
require customers to pay monthly charges for any upgrade that
fails and is not repaired within 21 days. The utility may
restart charges once the upgrade is repaired and functioning
and extend the term of payments to recover its costs for missed
payments and deferred cost recovery, providing the upgrade
continues to function.
(l) Any energy project that is defective or damaged due to

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no fault of the participant must be either replaced or
repaired with parts that meet industry standards at the cost
of the utility or vendor, as specified by the Commission, and
charges shall be suspended until repairs or replacement is
completed. The Commission may establish, increase, or replace
the requirements imposed in this subsection. The Commission
may determine that this responsibility is best handled by
participating project vendors in the form of insurance,
contractual guarantees, or other mechanisms, and issue rules
detailing this requirement. In no case will customers be
charged monthly payments for upgrades that are no longer
functioning.
(m) In the event of nonpayment, the remaining balance due
to pay off the system shall remain with the utility meter at an
upgraded location. The Commission shall establish conditions
subject to this constraint in the event of nonpayment that are
in accordance with the PAYS system.
(n) If the demand by utility customers exceeds the Program
capital supply in a given year, utilities shall ensure that
50% of participants are: (1) customers in neighborhoods where
a majority of households make 150% or less of area median
income; or (2) residents of environmental justice communities.
(o) Utilities shall endeavor to inform customers about the
availability of the Program, their potential eligibility for
participation in the Program, and whether they are likely to
save money on the basis of an estimate conducted using

HB0804 Engrossed - 869 - LRB102 10881 SPS 16211 b
variables consistent with the Program that the utility has at
its disposal. The Commission may establish guidelines by which
utilities must abide by this directive and alternatives if the
Commission deems utilities' efforts as inadequate.
(p) Subject to Commission specifications established in
subsection (c), each utility shall work with certified project
vendors selected using a request for proposals process to
establish the terms and processes under which a utility can
install eligible renewable energy generation and energy
storage systems using the capital to fit the Equitable Energy
Upgrade model. The certified project vendor shall explain and
offer the approved upgrades to customers and shall assist
customers in applying for financing through the Equitable
Energy Upgrade Program. As part of the process, vendors shall
also provide participants with information about any other
relevant incentives that may be available.
(q) An electric utility shall recover all of the prudently
incurred costs of offering a program approved by the
Commission under this Section. For investor-owned utilities,
shareholder incentives will be proportional to meeting
Commission approved thresholds for the number of customers
served and the amount of its investments in those locations.
(r) The Illinois Commerce Commission shall adopt all rules
necessary for the administration of this Section.
(220 ILCS 5/16-128B)

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Sec. 16-128B. Qualified energy efficiency installers.
(a) Within 18 months after the effective date of this
amendatory Act of the 99th General Assembly, the Commission
shall adopt rules, including emergency rules, establishing a
process for entities installing energy efficiency measures to
certify compliance with the requirements of this Section.
The process shall include an option to complete the
certification electronically by completing forms on-line. An
entity installing energy efficiency measures shall be
permitted to complete the certification after the subject work
has been completed.
The Commission shall maintain on its website a list of
entities installing energy efficiency measures that have
successfully completed the certification process.
(b) In addition to any authority granted to the Commission
under this Act, the Commission may:
(1) determine which entities are subject to
certification under this Section;
(2) impose reasonable certification fees and
penalties;
(3) adopt disciplinary procedures;
(4) investigate any and all activities subject to this
Section, including violations thereof;
(5) adopt procedures to issue or renew, or to refuse
to issue or renew, a certification or to revoke, suspend,
place on probation, reprimand, or otherwise discipline a

HB0804 Engrossed - 871 - LRB102 10881 SPS 16211 b
certified entity under this Act or take other enforcement
action against an entity subject to this Section; and
(6) prescribe forms to be issued for the
administration and enforcement of this Section.
(c) An electric utility may not provide a retail customer
with a rebate or other energy efficiency incentive for a
measure that exceeds a minimal amount determined by the
Commission unless the customer provides the electric utility
with (1) a certification that the person installing the energy
efficiency measure was a self-installer; or (2) evidence that
the energy efficiency measure was installed by an entity
certified under this Section that is also in good standing
with the Commission.
(d) The Commission shall:
(1) require entities installing energy efficiency
measures to be certified to do business and to be bonded in
this State;
(2) ensure that entities installing energy efficiency
measures have the requisite knowledge, skill, training,
experience, and competence to perform functions in a safe
and reliable manner as required under subsection (a) of
Section 16-128 of this Act;
(3) ensure that entities installing energy efficiency
measures conform to applicable building and electrical
codes;
(4) ensure that all entities installing energy

HB0804 Engrossed - 872 - LRB102 10881 SPS 16211 b
efficiency measures meet recognized industry standards as
the Commission deems appropriate;
(5) include any additional requirements that the
Commission deems reasonable to ensure that entities
installing energy efficiency measures meet adequate
training, financial, and competency requirements;
(6) ensure that all entities installing energy
efficiency measures obtain certificates of insurance in
sufficient amounts and coverages that the Commission so
determines; and
(7) identify and determine the training or other
programs by which persons or entities may obtain the
requisite training, skill, or experience necessary to
achieve and maintain compliance with the requirements of
this Section.
(e) Fees and penalties collected under this Section shall
be deposited into the Public Utility Fund and used to fund the
Commission's compliance with the obligations imposed by this
Section.
(f) The rules adopted under this Section shall specify the
initial dates for compliance with the rules.
(g) For purposes of this Section, entities installing
energy efficiency measures shall endeavor to support the
diversity goals of this State by attracting, developing,
retaining, and providing opportunities to employees of all
backgrounds and by supporting women-owned female-owned, black,

HB0804 Engrossed - 873 - LRB102 10881 SPS 16211 b
indigenous, and people of color-owned minority-owned, and
veteran-owned, and small businesses, and nonprofit
organizations, worker-owned cooperatives, and other entities.
(Source: P.A. 99-906, eff. 6-1-17.)
(220 ILCS 5/16-131 new)
Sec. 16-131. Right to self-generate electricity.
(a) As used in this Section:
"Electric cooperative" has the meaning set forth in
Section 3.4 of the Electric Supplier Act.
"Municipal utility" means a public utility that is owned
and operated by any political subdivision or municipal
corporation of this State or owned by such an entity and
operated by any lessee or any operating agent thereof.
"Public utility" has the definition set forth in Section
3-105 of this Act.
(b) Customers shall have the right to, and the Commission
shall protect the rights of customers to, produce, consume,
and store their own energy without discriminatory
repercussions from a public utility, electric cooperative, or
municipal utility, regardless of whether that energy is
produced via a system that is owned outright, leased, or
financed through a behind-the-meter solar power-purchase
agreement or other means. This includes customers' rights to:
(1) generate, consume, and export renewable energy and
reduce his or her use of electricity obtained from the

HB0804 Engrossed - 874 - LRB102 10881 SPS 16211 b
grid;
(2) use technology to store energy at his or her
residence;
(3) connect his or her electrical system that
generates renewable energy, stores energy, or any
combination thereof, with the electricity meter on the
customer's premises that is provided by a public utility,
electric cooperative, or municipal utility:
(A) in a timely manner;
(B) in accordance with requirements established by
the electric utility to ensure the safety of utility
workers; and
(C) after providing written notice to the electric
utility providing service in the service territory,
installing a nomenclature plate on the electrical
meter panel and meeting all applicable state and local
safety and electrical code requirements associated
with installing a parallel distributed generation
system; and
(4) receive fair credit for energy exported to the
grid.
(c) A public utility, electric cooperative, or municipal
utility customer who produces, consumes, and stores his or her
own energy shall not face discriminatory rate design, fees,
treatment, or excessive compliance requirements as provided by
paragraph (3) of subsection (n) of Section 16-107.5.

HB0804 Engrossed - 875 - LRB102 10881 SPS 16211 b
(d) A public utility, electric cooperative, or municipal
utility customer shall have a right to appeal any decision
related to self-generation and storage that violates these
rights to self-generation and non-discrimination pursuant to
the provisions of this Section through a complaint process.
(e) The Illinois Commerce Commission shall adopt all rules
necessary for the administration of this Section.
Section 90-45. The Environmental Protection Act is amended
by changing Section 9.10 and by adding Section 9.18 as
follows:
(415 ILCS 5/9.10)
Sec. 9.10. Fossil fuel-powered electric generating units
Fossil fuel-fired electric generating plants.
(a) As used in this Section:
"Board" means the Illinois Pollution Control Board.
"BIPOC" and "black, indigenous, and people of color" are
identical in meaning and have the same definition as used in
the Clean Jobs, Workforce and Contractor Equity Act.
"Emissions" means greenhouse gases, particulate matter,
mercury, nitrogen oxides, sulfur dioxide, and any other
pollutant that the Agency deems appropriate for regulation to
protect health or land in the State.
"Frontline community" means any community or municipality
within a 3-mile radius of a fossil fuel-powered electric

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generating unit.
"Meaningful involvement" means: (1) potentially affected
populations have an appropriate opportunity to participate in
decisions about a proposed regulatory action that may affect
their environment or health; (2) the populations'
contributions can influence the EPA's rulemaking decisions;
(3) the concerns of all participants involved shall be
considered in the decision-making process; and (4) the IEPA
shall seek out and facilitate the involvement of populations
potentially affected by the IEPA's proposed regulatory action.
(a-1) (a) The General Assembly finds and declares that:
(1) fossil fuel-powered electric generating units
fossil fuel-fired electric generating plants are a
significant source of air emissions in this State and have
become the subject of a number of important new studies of
their effects on the public health;
(2) existing state and federal policies, that allow
older plants that meet federal standards to operate
without meeting the more stringent requirements applicable
to new plants, are being questioned on the basis of their
environmental impacts and the economic distortions such
policies cause in a deregulated energy market;
(3) fossil fuel-powered electric generating units
fossil fuel-fired electric generating plants are, or may
be, affected by a number of regulatory programs, some of
which are under review or development on the state and

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national levels, and to a certain extent the international
level, including the federal acid rain program,
tropospheric ozone, mercury and other hazardous pollutant
control requirements, regional haze, and global warming;
(4) scientific uncertainty regarding the formation of
certain components of regional haze and the air quality
modeling that predict impacts of control measures requires
careful consideration of the timing of the control of some
of the pollutants from these facilities, particularly
sulfur dioxides and nitrogen oxides that each interact
with ammonia and other substances in the atmosphere;
(5) the development of energy policies to promote a
safe, sufficient, reliable, and affordable energy supply
on the state and national levels is being affected by the
on-going deregulation of the power generation industry and
the evolving energy markets;
(6) the Governor's formation of an Energy Cabinet and
the development of a State energy policy calls for actions
by the Agency and the Board that are in harmony with the
energy needs and policy of the State, while protecting the
public health and the environment;
(7) reducing greenhouse gas emissions and other air
pollutants such as particulate matter, sulfur dioxide, and
nitrogen oxide is critical to improving the health and
welfare of Illinois residents by decreasing respiratory
diseases, cardiovascular diseases, and related

HB0804 Engrossed - 878 - LRB102 10881 SPS 16211 b
mortalities; lowering customers' energy costs; and
responding to the growing impacts of climate change from
fossil fuel generation;
(8) through reductions in harmful emissions and
strategic planning for Illinois residents currently
employed by and communities reliant on fossil fuel-powered
electric generating units, eliminating greenhouse gas
emissions from the electricity generation sector is a
priority for the State;
(9) The House of Representatives of the 100th General
Assembly recognized this problem and, in adopting House
Resolution 490 on June 26, 2017, it supported the Paris
Climate Agreement and urged the State of Illinois to join
the United States Climate Alliance and develop a plan to
achieve 100% clean energy by 2045;
(7) Illinois coal is an abundant resource and an
important component of Illinois' economy whose use should
be encouraged to the greatest extent possible consistent
with protecting the public health and the environment;
(8) renewable forms of energy should be promoted as an
important element of the energy and environmental policies
of the State and that it is a goal of the State that at
least 5% of the State's energy production and use be
derived from renewable forms of energy by 2010 and at
least 15% from renewable forms of energy by 2020;
(10) (9) efforts on the state and federal levels are

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underway to consider the multiple environmental
regulations affecting electric generating plants in order
to improve the ability of government and the affected
industry to engage in effective planning through the use
of multi-pollutant strategies; and
(11) (10) these issues, taken together, call for a
comprehensive review of the impact of these facilities on
the public health, considering also the energy supply,
reliability, and costs, the role of renewable forms of
energy, and the developments in federal law and
regulations that may affect any state actions, prior to
making final decisions in Illinois.
(b) Taking into account the findings and declarations of
the General Assembly contained in subsection (a) of this
Section, the Agency shall, within 180 days after the effective
date of this amendatory Act of the 102nd General Assembly,
initiate a rulemaking to amend Title 35 of the Illinois
Administrative Code to establish annual declining greenhouse
gas pollution caps and caps on co-pollutants, including, but
not limited to, particulate matter (including both PM10 and
PM2.5), mercury, nitrogen oxides, and sulfur dioxide, beginning
in 2023 from all fossil fuel-powered electric generating units
(including, but not limited to, coal-fired, coal-derived,
oil-fired, combustion turbine, integrated gasification
combined cycle, and cogeneration facilities with a nameplate
capacity that exceeds 25 MW) so as to progressively eliminate

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all emissions of those pollutants from Illinois' electric
sector by the year 2030. No later than one year after receipt
of the Agency's proposal under this Section, the Board shall
adopt rules setting out declining annual emissions caps for
greenhouse gases (CO2 equivalent) and co-pollutants,
including, but not limited to, particulate matter (including
both PM10 and PM2.5), mercury, nitrogen oxides, and sulfur
dioxide, for each individual fossil fuel-powered electric
generating unit in Illinois as well as aggregate annual
statewide emissions caps. The Board may set different
declining caps for each plant, but caps must decline to zero
emissions for all plants by 2030. As part of its rulemaking
proposal, the Agency shall:
(1) ensure that power plants located near densely
populated and environmental justice communities and those
with sulfur dioxide emission rates above 0.0007 pounds per
million Btu are prioritized for more rapid, mandatory,
plant-specific emissions reductions for both greenhouse
gases and co-pollutants;
(2) develop an environmental justice analysis, in
partnership with the Illinois Commission on Environmental
Justice and with frontline community feedback, to inform a
draft rule proposal and identification of power plants of
particular concern requiring priority emissions
reductions. This analysis shall include a cumulative
impacts assessment and use existing methodologies and

HB0804 Engrossed - 881 - LRB102 10881 SPS 16211 b
findings, used and as may be updated by the Illinois Power
Agency and its Administrator in its Illinois Solar for All
Program, taking into account the following factors:
(A) Population density;
(B) National-Scale Air Toxics Assessment (NATA)
air toxics cancer risk;
(C) NATA respiratory hazard index;
(D) NATA diesel PM;
(E) particulate matter;
(F) ozone;
(G) traffic proximity and volume;
(H) lead paint indicator;
(I) proximity to Risk Management Plan sites;
(J) proximity to Hazardous Waste Treatment,
Storage, and Disposal Facilities;
(K) proximity to National Priorities List sites;
(L) Wastewater Dischargers Indicator;
(M) percent low-income;
(N) percent black, indigenous, and people of
color;
(O) percent less than a high school education;
(P) linguistic isolation;
(Q) age (individuals under age 5 or over 64);
(R) number of asthma-related emergency department
visits; and
(S) frequency of low birth weight infants;

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(3) conduct a robust and inclusive stakeholder process
prior to initiating a rulemaking proceeding before the
Illinois Pollution Control Board that ensures the
meaningful participation of Illinois residents, especially
those most impacted by fossil fuel-powered electric
generating units. To ensure meaningful involvement in its
stakeholder process, the agency shall:
(A) include a formal public comment period with at
least 4 public hearings located in communities
geographically dispersed, where fossil fuel-powered
electric generating units are located;
(B) ensure full and fair access for working
residents by providing opportunity for public comment
outside the workday; and
(C) issue a responsiveness summary with a draft
rulemaking briefly describing and responding to, at a
minimum, all frontline community comments raised
during the stakeholder process and public comment
period;
(4) participate in strategic planning efforts with the
Department of Commerce and Economic Opportunity to
identify needs and initiatives for communities and workers
economically impacted by the decline in fossil fuel
generation;
(5) evaluate individual units using the criteria above
and set appropriate annually declining caps for emission

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reductions, which ultimately result in caps of zero
emissions from all fossil fuel-powered electric generating
units by January 1, 2030;
(6) include provisions to allow owners or operators of
fossil fuel-powered electric generating units to continue
operating while using their best efforts to resolve any
reliability requirements with regional grid operators and
cease operations as soon as practicable in situations
where achieving the emission reductions required by the
Agency's rulemaking proposal necessitates that a
particular unit cease operations and a regional grid
operator determines that operation of that unit is
required to continue to maintain transmission reliability.
The Agency's rulemaking proposal shall include mechanisms
designed to limit, to the extent possible, any such
disruption to the State's emission reduction program,
including an evaluation of when and how advanced notice of
intended unit closures should be given to regional grid
operators; and
(7) establish emissions caps for (i) individual fossil
fuel-powered electric generating units and (ii) the entire
electric sector. The emissions caps shall include all
emissions, including greenhouse gases and co-pollutants.
(A) Annual aggregate electric sector emissions
caps. The aggregate emissions cap shall apply to the
entire Illinois electric sector and include the sum of

HB0804 Engrossed - 884 - LRB102 10881 SPS 16211 b
emissions from all fossil fuel-powered electric
generating units. The Agency shall establish a
schedule through which the aggregate cap shall decline
annually. A baseline amount shall be calculated by
averaging the emissions from 2017, 2018, and 2019 of
plants operating as of the effective date of this
amendatory Act of the 102nd General Assembly. To
ensure consistent progress toward the goal of
eliminating all emissions from Illinois' electric
sector by 2030, the annual aggregate emissions cap
shall decrease each year by no less than 7% of the
baseline amount.
(B) Annual unit-specific emissions caps. Annual
emissions caps shall apply to each fossil fuel-powered
electric generating unit in the State and be
consistent with achieving the aggregate emissions cap.
Starting in 2023, the annual emissions cap for each
plant shall be no greater than the highest emissions
amount from any of the 3 previous years of operation.
If a plant first became operational less than 3 years
before being subject to a unit-specific emissions cap,
then the annual emissions cap for such a plant shall be
no greater than its previous year of operation; or if a
fossil fuel-powered electric generating unit has been
operational less than one year, then the Agency shall
set a cap that is consistent with achieving the

HB0804 Engrossed - 885 - LRB102 10881 SPS 16211 b
aggregate emissions cap and the goal of eliminating
all emissions from Illinois' electric sector by 2030.
(C) Annual report. Each year, the Agency shall
prepare and publish a report on the implementation,
review, and updating of the schedules regulating
annual emissions caps as described in this subsection.
This report shall include:
(i) an accounting of all greenhouse gas and
co-pollutant caps on, and actual emissions from,
individual plants demonstrating the Agency's
implementation of the requirements in this
subsection; and
(ii) an accounting of the aggregate declining
cap schedules demonstrating the adequacy of the
schedules to achieve net-zero emissions in the
electric sector by 2030, and any changes to the
schedules.
In addition to the information required under
items (i) and (ii), the 2025 report shall include a
review of the Agency's rules regulating annual
greenhouse gas pollution and co-pollutant caps in
light of projected emissions for the remaining years
until 2030 and demonstrate the adequacy of its rules
and policies to achieve net-zero emissions in the
electric sector by 2030. Should the Agency conclude
its current rules and policies are insufficient to

HB0804 Engrossed - 886 - LRB102 10881 SPS 16211 b
eliminate emissions from all fossil fuel-powered
electric generating units by January 1, 2030 and
comply with all other requirements in this Section, it
shall initiate a rulemaking no later than 180 days
from reaching this conclusion amending its rules to do
so.
before September 30, 2004, but not before September 30, 2003,
issue to the House and Senate Committees on Environment and
Energy findings that address the potential need for the
control or reduction of emissions from fossil fuel-fired
electric generating plants, including the following
provisions:
(1) reduction of nitrogen oxide emissions, as
appropriate, with consideration of maximum annual
emissions rate limits or establishment of an emissions
trading program and with consideration of the developments
in federal law and regulations that may affect any State
action, prior to making final decisions in Illinois;
(2) reduction of sulfur dioxide emissions, as
appropriate, with consideration of maximum annual
emissions rate limits or establishment of an emissions
trading program and with consideration of the developments
in federal law and regulations that may affect any State
action, prior to making final decisions in Illinois;
(3) incentives to promote renewable sources of energy
consistent with item (8) of subsection (a) of this

HB0804 Engrossed - 887 - LRB102 10881 SPS 16211 b
Section;
(4) reduction of mercury as appropriate, consideration
of the availability of control technology, industry
practice requirements, or incentive programs, or some
combination of these approaches that are sufficient to
prevent unacceptable local impacts from individual
facilities and with consideration of the developments in
federal law and regulations that may affect any state
action, prior to making final decisions in Illinois; and
(5) establishment of a banking system, consistent with
the United States Department of Energy's voluntary
reporting system, for certifying credits for voluntary
offsets of emissions of greenhouse gases, as identified by
the United States Environmental Protection Agency, or
other voluntary reductions of greenhouse gases. Such
reduction efforts may include, but are not limited to,
carbon sequestration, technology-based control measures,
energy efficiency measures, and the use of renewable
energy sources.
The Agency shall consider the impact on the public health,
considering also energy supply, reliability and costs, the
role of renewable forms of energy, and developments in federal
law and regulations that may affect any state actions, prior
to making final decisions in Illinois.
(c) Nothing in this Section is intended to or should be
interpreted in a manner to limit or restrict the authority of

HB0804 Engrossed - 888 - LRB102 10881 SPS 16211 b
the Illinois Environmental Protection Agency to propose, or
the Illinois Pollution Control Board to adopt, any regulations
applicable or that may become applicable to the facilities
covered by this Section that are required by federal law and
other Illinois laws.
(d) The Agency may file proposed rules with the Board to
effectuate the goals set forth in subsection (b) its findings
provided to the Senate Committee on Environment and Energy and
the House Committee on Environment and Energy in accordance
with subsection (b) of this Section. Any such proposal shall
not be submitted sooner than 90 days after the issuance of the
findings provided for in subsection (b) of this Section. The
Board shall take action on any such proposal within one year of
the Agency's filing of the proposed rules.
(e) Enforcement.
(1) Any person may file with the Board a complaint,
following the procedures contained in subsection (d) of
Section 31 of this Act, against any person, the State of
Illinois, or any government official for failure to
perform any act or nondiscretionary duty under this
Section or for allegedly violating this Section, any rule
or regulation adopted under this Section, any permit or
term or condition of a permit related to this Section, or
any Board order issued pursuant to this Section. Any
person shall have standing in an action under this Section
before the Board. Any person may intervene as a party as a

HB0804 Engrossed - 889 - LRB102 10881 SPS 16211 b
matter of right in any legal action concerning this
Section, whichever the forum, if he or she is or may be
adversely affected by any failure to perform any act or
nondiscretionary duty under this Section or any alleged
violation of this Section, any rule or regulation adopted
under this Section, any permit or term or condition of a
permit, or any Board order, by any person, the State of
Illinois, or any government official.
(2) In an action brought pursuant to this Section, any
person may request, and the Board or court may grant,
injunctive relief, damages (including reasonable attorney
and expert witness fees), and any other remedy available
pursuant to Sections 33 or 42 of this Act. The Board or
court may, if a temporary restraining order or preliminary
injunction is sought, require the filing of a bond or
equivalent security in accordance with the Illinois Code
of Civil Procedure.
(3) No existing civil or criminal remedy shall be
excluded or impaired by this Section. This Section shall
apply only to those electrical generating units that are
subject to the provisions of Subpart W of Part 217 of Title
35 of the Illinois Administrative Code, as promulgated by
the Illinois Pollution Control Board on December 21, 2000.
(Source: P.A. 92-12, eff. 7-1-01; 92-279, eff. 8-7-01.)
(415 ILCS 5/9.18 new)

HB0804 Engrossed - 890 - LRB102 10881 SPS 16211 b
Sec. 9.18. Energy community reinvestment fee.
(a) As used in this Section:
"Carbon dioxide equivalent" means a unit of measure
denoting the amount of emissions from a greenhouse gas,
expressed as the amount of carbon dioxide by weight that
produces the same global warming impact.
"Fossil fuel generating plant" means an electric
generating unit or a co-generating unit that produces
electricity using fossil fuels.
"Payment period" means the three-month period of time
during which emissions are measured for the purpose of
quarterly fee calculation.
(b) The General Assembly finds and declares that:
(1) the negative effects of fossil fuel-powered
electric generating units on human health, environmental
quality, and the climate of our planet require Illinois to
swiftly retire all such plants and shift to 100% renewable
energy;
(2) communities located near fossil fuel-powered
electric generating units have experienced these health
and environmental impacts most acutely;
(3) communities located near fossil fuel-powered
electric generating units will also experience economic
challenges as these plants retire;
(4) the assessment of a fee on the emissions of fossil
fuel generating plants will lower the exposure of

HB0804 Engrossed - 891 - LRB102 10881 SPS 16211 b
surrounding communities to harmful air pollutants by
providing incentive for fossil fuel generating plants to
reduce emissions;
(5) it is in the public interest that communities
located near fossil fuel-fired electric generating plants
should receive support in the form of economic
reinvestment, as recompense for the negative impacts of
the operation of fossil fuel-fired electric generating
plants, to invest in clean energy developments that reduce
the cumulative impacts of air pollution thus protecting
the public health, and as a means for creating new
economic growth and opportunity which is needed when the
plants retire; and
(6) this support should be paid for by the owners and
operators of fossil fuel-fired electric generating plants,
the operation of which caused harm to the surrounding
communities.
(c) Calculation of the Energy Community Reinvestment Fee.
The Agency shall establish procedures for the collection of
energy community reinvestment fees. Energy community
reinvestment fees shall be paid at least quarterly (once every
3 months) by owners of all fossil fuel generating plants in
Illinois, based on the share of each plant's contribution to
the total amount of air pollution emitted by all fossil fuel
generating plants in that payment period, as determined by the
Agency and described in this subsection (c).

HB0804 Engrossed - 892 - LRB102 10881 SPS 16211 b
(1) Pollution Calculation. The energy community
reinvestment fee shall be calculated to reflect the
pollution burden from fossil fuel generating plants, based
on the total emissions of greenhouse gases. The fee shall
be calculated based solely on emissions of carbon dioxide,
methane, and nitrous oxide measured in carbon dioxide
equivalent tons. The exclusive use of carbon dioxide,
methane, and nitrous oxide in the calculation of the fee
is designed to reflect the overall pollution impact from
each fossil fuel generating plant by using these
pollutants as a proximate measurement of overall
emissions.
(2) Fee Calculation. The Agency shall calculate the
fee owed by each fossil fuel generating plant owner for
each payment period by dividing (A) the total emissions of
carbon dioxide equivalents in tons by each plant as
described under paragraph (1) of this subsection (c) by
(B) the total emissions of carbon dioxide equivalents in
tons of all fossil fuel generating plants subject to the
energy community reinvestment fee, and multiplying that
figure by (C) the portion of the annual revenue
requirements, established in subsection (d) of Section
20-70 of the Energy Community Reinvestment Act, for that
payment period.
(3) Right to Fee Reduction. The owner of each plant
liable to pay the energy community reinvestment fee shall

HB0804 Engrossed - 893 - LRB102 10881 SPS 16211 b
have the right to reduce its liability based on
electricity production as described in this paragraph (3).
If requested, the total amount owed each payment period
for any plant shall be no greater than the total amount of
kilowatt hours of electricity produced by the plant during
the payment period multiplied by one cent per kilowatt
hour, adjusted for inflation from the year this Act takes
effect. Upon request by a plant owner the Agency shall
adjust the total amount owed for each payment period by
the amount necessary to reflect a maximum cost calculated
based on electricity production.
(4) Notification by the Agency. The first payment
period shall begin June 1, 2021. No later than September
1, 2021, and every 3 months thereafter on the first of the
month, the Agency shall notify each fossil fuel generating
plant owner of the fee calculated pursuant to paragraph
(2) of this subsection (c) for the quarterly period just
concluded.
(5) Fee Collection. Plant owners shall remit payment
of their fee to the Agency within 30 days after the close
of each payment period, as established by the Agency.
Funds collected from the energy community reinvestment fee
shall be deposited into the Energy Community Reinvestment
Fund.
(d) Clean Energy Empowerment Zone Task Force involvement.
If the Agency receives notification from the Department of

HB0804 Engrossed - 894 - LRB102 10881 SPS 16211 b
Commerce and Economic Opportunity that a plant owner has
failed to engage productively in stakeholder meetings and with
Clean Energy Empowerment Zone Task Forces, as described in the
Energy Community Reinvestment Act, an enforcement action may
be brought under Section 31 of this Act. In addition to any
other relief that may be obtained as part of the enforcement
action, the Agency may seek to recover the avoided engagement
fees. The avoided engagement fees shall be calculated as
double the amount that is owed by the plant owner under
subsection (c) for the current payment period, and subsequent
payment periods, until the Department of Commerce and Economic
Opportunity sends notification to the Agency that the plant
owner is in compliance with the stakeholder engagement
requirements of the Energy Community Reinvestment Act. Avoided
engagement fees (which, for clarity, are in addition to fees
collected under subsection (c)) shall be deposited into the
Energy Community Reinvestment Fund to be directed solely to
support the local community's own planning efforts and
investments, and the Agency shall transmit a notification to
the Department of Commerce and Economic Opportunity of the
amount collected, and the plant owner responsible.
(e) If a plant owner subject to a fee under this Section
fails to pay the fee within 90 days after its due date, or
makes the fee payment from an account with insufficient funds
to cover the amount of the fee payment, the Agency shall notify
the plant owner of the failure to pay the fee. If the plant

HB0804 Engrossed - 895 - LRB102 10881 SPS 16211 b
owner fails to pay the fee within 60 days after such
notification, the Agency may, by written notice, immediately
revoke the air pollution operating permit. Failure of the
Agency to notify the plant owner of failure to pay a fee due
under this Section, or the payment of the fee from an account
with insufficient funds to cover the amount of the fee
payment, does not excuse or alter the duty of the plant owner
to comply with the provisions of this Section.
(f) No later than November 30 of each year, the Agency
shall submit a report to the Department of Commerce and
Economic Opportunity describing the amount of fees collected
from each fossil fuel-powered electric generating unit, the
status of any delinquencies, and the total amount expected to
be collected.
(g) Nothing in this Section shall be interpreted to mean
that the sum owed by each fossil fuel generating plant due to
the energy community reinvestment fee is equal to or greater
than the financial valuation of the total harm created by air
pollution from each plant.
(h) Enforcement.
(1) Any person may file with the Board a complaint,
following the procedures contained in subsection (d) of
Section 31 of this Act, against any person, the State of
Illinois, or any government official for failure to
perform any act or nondiscretionary duty under this
Section or for allegedly violating this Section, any rule

HB0804 Engrossed - 896 - LRB102 10881 SPS 16211 b
or regulation adopted under this Section, any permit or
term or condition of a permit related to this Section, or
any Board order issued pursuant to this Section. Any
person shall have standing in an action under this Section
before the Board. Any person may intervene as a party as a
matter of right in any legal action concerning this
Section, whichever the forum, if he or she is or may be
adversely affected by any failure to perform any act or
nondiscretionary duty under this Section or any alleged
violation of this Section, any rule or regulation adopted
under this Section, any permit or term or condition of a
permit, or any Board order, by any person, the State of
Illinois, or any government official. Any person with
standing to commence an action pursuant to subsection (e)
of Section 9.10 shall have standing to pursue enforcement
under this Section.
(2) In an action brought pursuant to this Section, any
person may request, and the Board or court may grant,
injunctive relief, damages (including reasonable attorney
and expert witness fees), and any other remedy available
pursuant to Sections 33 or 42 of this Act. The Board or
court may, if a temporary restraining order or preliminary
injunction is sought, require the filing of a bond or
equivalent security in accordance with the Illinois Code
of Civil Procedure.
(3) No existing civil or criminal remedy shall be

HB0804 Engrossed - 897 - LRB102 10881 SPS 16211 b
excluded or impaired by this Section.
(415 ILCS 5/9.15 rep.)
Section 90-50. The Environmental Protection Act is amended
by repealing Section 9.15.
Section 90-55. The Illinois Nuclear Facility Safety Act is
amended by adding Section 10 as follows:
(420 ILCS 10/10 new)
Sec. 10. Local government nuclear impact fees.
(a) As used in this Section:
"Local taxing body" means any unit of government that
assesses and collects property taxes.
"Qualifying Nuclear Facility" means a facility playing or
having played a direct role in the operation of commercial
nuclear power reactors for the generation of electricity;
including facilities used to process radioactive materials for
nuclear fuel fabrication, nuclear power reactors, high-level
and low-level radioactive waste treatment sites, and storage
and disposal locations.
"Qualifying Nuclear Operator" means any entity that
operates or has in the past 50 years operated a Qualifying
Nuclear Facility.
(b) Notwithstanding any other provision of law to the
contrary, any local taxing body may establish and collect an

HB0804 Engrossed - 898 - LRB102 10881 SPS 16211 b
annual Nuclear Impact Fee from Qualifying Nuclear Facility
within the boundaries of that local taxing body.
(c) The Nuclear Impact Fee shall be charged to the
Qualifying Nuclear Operator.
(d) The Nuclear Impact Fee may only be applied
prospectively on or after the effective date of this
amendatory Act of the 102nd General Assembly, and may not be
applied retroactively to a date before which this amendatory
Act is passed.
(e) The Nuclear Impact Fee permission granted to local
taxing bodies under these rules shall expire separately for
each individual local taxing body. That date of expiration of
the Nuclear Impact Fee permission for each local taxing body
shall be either exactly 30 years after the effective date of
this amendatory Act of the 102nd General Assembly, or 10 years
following the permanent shutdown of the Qualifying Nuclear
Facility from which the local taxing body collected property
taxes, whichever date is later.
(f) In any calendar year, a local taxing body may not
impose a Nuclear Impact Fee that exceeds 25% of the average
annual amount of property taxes, or payments in lieu of taxes,
paid to that local taxing body by the Qualifying Nuclear
Facility over the most recent 5-year period that the
Qualifying Nuclear Facility has been operational.
(g) Any failure by the Qualifying Nuclear Operator to pay
a Nuclear Impact Fee within 180 days after the fee payment

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deadline shall be deemed a failure to comply, and shall
automatically require the Qualifying Nuclear Operator to pay
the Local Entity double the otherwise-allowable property
taxes, up to 50% of the average annual amount of property taxes
paid over the most recent 5-year period that the Qualifying
Nuclear Facility was operational.
(h) To establish a Nuclear Impact Fee, the local taxing
body shall adopt a resolution or ordinance describing the
public need for economic transition, the annual amount of the
fee, the Qualifying Nuclear Facility, the Qualifying Nuclear
Operator to be assessed, and a description of projected
expenses for the fee for the period the fee is in effect. The
local taxing body shall conduct a public hearing before
adopting a resolution or ordinance imposing a Nuclear Impact
Fee permitted under this Section. The hearing shall be held
within the boundaries of the local taxing body. Public notice
of the time, place, and purpose of the hearing shall be given
at least 10 business days before the date of the hearing.
(i) A local taxing body shall include in its resolution or
ordinance the method for collection of payment of a Nuclear
Impact Fee. A county which has adopted a resolution or
ordinance imposing a Nuclear Impact Fee may collect such Fees
in the regular property tax bills of the county. The county
collector of the county in which a local taxing body has
adopted a resolution or ordinance imposing a Nuclear Impact
Fee may bill and collect such Fees with the regular property

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tax bills of the county if requested by a local taxing body
within its jurisdiction.
(j) The revenue collected through the Nuclear Impact Fee
by a local taxing body shall only be used for the purposes of
supporting the "economic transition" of local communities that
have experienced the closure of a Qualifying Nuclear Facility
or will experience a Qualifying Nuclear Facility in the
future. "Economic transition" uses may include tax base
replacement, workforce development, public school funding,
essential public service, or sustainable infrastructure
projects.
(k) The revenue collected under this Section shall not be
used either directly or indirectly to aid, subsidize, enact,
support, or otherwise enable investment in any electricity
generation infrastructure that processes or can process fossil
or nuclear fuels.
(l) No later than November 30 of each calendar year, each
local taxing body collecting a Nuclear Impact Fee pursuant to
this Section shall remit to the Department of Revenue for
deposit in the Energy Community Reinvestment Fund 20% of the
annual revenue collection from any Nuclear Impact Fees in
order to help fund state programs that support economic
transition and workforce development, showing such information
as the Department of Revenue may reasonably require.
(m) No later than November 30 of each calendar year, each
local taxing body collecting a Nuclear Impact Fee pursuant to

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this Section shall submit to the Department of Commerce and
Economic Opportunity and the Agency a report detailing the
total amount of funds collected from any Nuclear Impact Fees,
the planned expenditure of the funds, the coordination of
expenditure with any Department economic transition activities
and investments, copies of any adoption of or amendments to
resolutions or ordinances impacting the assessment of Nuclear
Impact Fees, and a certification of the remittance of the
State portion of the funds collected to the Department of
Revenue.
(n) The Department of Commerce and Economic Opportunity
may establish such rules as it deems necessary to implement
this Section.
Section 90-60. The Prevailing Wage Act is amended by
adding Section 3.3 as follows:
(820 ILCS 130/3.3 new)
Sec. 3.3. Job classifications. The Department of Labor
must, within 60 days after the effective date of this
amendatory Act of the 102nd General Assembly, identify job
categories for laborers, mechanics, and other workers employed
in the provision of programs created or altered by this Act,
for which the Department has not already set a prevailing rate
of wages.
The Department of Labor must, within 240 days after the

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effective date of this amendatory Act of the 102nd General
Assembly, set a prevailing rate of wages for each identified
job category.
Article 99. Nonacceleration; Effective Date
Section 99-95. 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 made by this Act or (ii) provisions derived from any
other Public Act.
Section 99-99. Effective date. This Act takes effect upon
becoming law.
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INDEX
Statutes amended in order of appearance
New Act
5 ILCS 100/5-45.8 new
5 ILCS 100/5-45.9 new
5 ILCS 100/5-49.10 new
20 ILCS 627/30 new
20 ILCS 627/35 new
20 ILCS 627/40 new
20 ILCS 3125/10
20 ILCS 3125/15
20 ILCS 3125/20
20 ILCS 3125/30
20 ILCS 3125/45
20 ILCS 3125/55 new
20 ILCS 3855/1-5
20 ILCS 3855/1-10
20 ILCS 3855/1-20
20 ILCS 3855/1-56
20 ILCS 3855/1-75
30 ILCS 105/5.935 new
30 ILCS 105/5.936 new
30 ILCS 105/5.937 new
35 ILCS 5/201
35 ILCS 120/5k-5 new
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105 ILCS 5/2-3.182 new
220 ILCS 5/2-107 from Ch. 111 2/3, par. 2-107
220 ILCS 5/4-604 new
220 ILCS 5/4-605 new
220 ILCS 5/8-103B
220 ILCS 5/8-104.1 new
220 ILCS 5/8-512 new
220 ILCS 5/9-220.3
220 ILCS 5/9-222.1B new
220 ILCS 5/9-227 from Ch. 111 2/3, par. 9-227
220 ILCS 5/10-104 from Ch. 111 2/3, par. 10-104
220 ILCS 5/16-105.17 new
220 ILCS 5/16-107
220 ILCS 5/16-107.5
220 ILCS 5/16-107.6
220 ILCS 5/16-107.7 new
220 ILCS 5/16-107.8 new
220 ILCS 5/16-108
220 ILCS 5/16-108.5
220 ILCS 5/16-108.9 new
220 ILCS 5/16-108.18 new
220 ILCS 5/16-111.5
220 ILCS 5/16-111.10 new
220 ILCS 5/16-128B
220 ILCS 5/16-131 new
415 ILCS 5/9.10
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