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| Public Act 098-0672
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| HB2427 Enrolled | LRB098 09433 JLS 39574 b |
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AN ACT concerning public utilities.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Power Agency Act is amended by |
changing Section 1-56 as follows:
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(20 ILCS 3855/1-56) |
Sec. 1-56. Illinois Power Agency Renewable Energy |
Resources Fund. |
(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 |
Fund shall be administered by the Agency to procure renewable |
energy resources. Prior to June 1, 2011, resources procured |
pursuant to this Section shall be procured from facilities |
located in Illinois, provided the resources are available from |
those facilities. If resources are not available in Illinois, |
then they shall be procured in states that adjoin Illinois. If |
resources are not available in Illinois or in states that |
adjoin Illinois, then they may be purchased elsewhere. |
Beginning June 1, 2011, resources procured pursuant to this |
Section shall be procured from facilities located in Illinois |
or states that adjoin Illinois. If resources are not available |
in Illinois or in states that adjoin Illinois, then they may be |
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procured elsewhere. To the extent available, at least 75% of |
these renewable energy resources shall come from wind |
generation. Of the renewable energy resources procured |
pursuant to this Section at least the following specified |
percentages shall come from photovoltaics on the following |
schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by |
June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the |
renewable energy resources procured pursuant to this Section, |
at least the following percentages shall come from distributed |
renewable energy generation devices: 0.5% by June 1, 2013, |
0.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter. |
To the extent available, half of the renewable energy resources |
procured from distributed renewable energy generation shall |
come from devices of less than 25 kilowatts in nameplate |
capacity. Renewable energy resources procured from distributed |
generation devices may also count towards the required |
percentages for wind and solar photovoltaics. Procurement of |
renewable energy resources from distributed renewable energy |
generation devices shall be done on an annual basis through |
multi-year contracts of no less than 5 years, and shall consist |
solely of renewable energy credits. |
The Agency shall create credit requirements for suppliers |
of distributed renewable energy. In order to minimize the |
administrative burden on contracting entities, the Agency |
shall solicit the use of third-party organizations to aggregate |
distributed renewable energy into groups of no less than one |
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megawatt in installed capacity. These third-party |
organizations shall 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. |
(c) The Agency shall procure renewable energy resources at |
least once each year in conjunction with a procurement event |
for electric utilities required to comply with Section 1-75 of |
the Act and shall, whenever possible, enter into long-term |
contracts on an annual basis for a portion of the incremental |
requirement for the given procurement year. |
(d) The price paid to procure renewable energy credits |
using monies from the Illinois Power Agency Renewable Energy |
Resources Fund shall not exceed the winning bid prices paid for |
like resources procured for electric utilities required to |
comply with Section 1-75 of this Act. |
(e) All renewable energy credits procured using monies from |
the Illinois Power Agency Renewable Energy Resources Fund shall |
be permanently retired. |
(f) The procurement process described in this Section is |
exempt from the requirements of the Illinois Procurement Code, |
pursuant to 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 |
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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.
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(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 |
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 |
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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 |
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 |
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(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 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 |
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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 |
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 |
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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 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. |
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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 |
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: |
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(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 |
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 |
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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, |
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 |
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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,
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credit terms, or instruments. If the procurement |
administrator cannot reach agreement with the parties |
as to the contract terms and conditions, 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 |
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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 |
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 |
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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 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 |
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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 |
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. 96-159, eff. 8-10-09; 96-1000, eff. 7-2-10; |
96-1437, eff. 8-17-10; 97-616, eff. 10-26-11.)
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Section 99. Effective date. This Act takes effect upon |
becoming law.
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