Bill Text: IL SB0238 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Modifies the provisions of the Act to apply to veterans and veteran-owned businesses. Modifies a Section concerning the short title. Changes the title of the Act to the Business Enterprise for Minorities, Women, Veterans, and Persons with Disabilities Act, and makes conforming changes throughout various statutes referencing the title of the Act. Amends the Illinois Procurement Code. Removes a provision concerning procurement preferences for veterans and veteran-owned businesses. Applies administrative penalties for falsely certified businesses to minority-owned businesses, women-owned businesses, veteran-owned businesses, and businesses owned by persons with a disability. Defines terms. Makes conforming changes in various statutes concerning minority-owned businesses, women-owned businesses, veteran-owned businesses, and businesses owned by persons with a disability. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-04-12 - Rule 2-10 Third Reading Deadline Established As May 3, 2024 [SB0238 Detail]

Download: Illinois-2023-SB0238-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0238 Introduced 1/31/2023, by Sen. Craig Wilcox SYNOPSIS AS INTRODUCED:
See Index
Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Modifies the provisions of the Act to apply to veterans and veteran-owned businesses. Modifies a Section concerning the short title. Changes the title of the Act to the Business Enterprise for Minorities, Women, Veterans, and Persons with Disabilities Act, and makes conforming changes throughout various statutes referencing the title of the Act. Amends the Illinois Procurement Code. Removes a provision concerning procurement preferences for veterans and veteran-owned businesses. Applies administrative penalties for falsely certified businesses to minority-owned businesses, women-owned businesses, veteran-owned businesses, and businesses owned by persons with a disability. Defines terms. Makes conforming changes in various statutes concerning minority-owned businesses, women-owned businesses, veteran-owned businesses, and businesses owned by persons with a disability. Effective immediately.
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A BILL FOR
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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Attorney General Act is amended by changing
Section 9 as follows:
(15 ILCS 205/9)
Sec. 9. Contract aspirational goals. The Attorney General
shall establish aspirational goals for contract awards for all
contracts for goods and services, not including contracts for
services relating to investigations or litigation. These
aspirational goals shall be substantially in accordance with
the Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act, unless otherwise governed by
other law. The Attorney General shall not be subject to the
jurisdiction of the Business Enterprise Council established
under the Business Enterprise for Minorities, Women, Veterans,
and Persons with Disabilities Act with regard to steps taken
to achieve aspirational goals. The Attorney General shall
annually post information regarding the Office's utilization
of businesses owned by minorities, women, veterans, and
persons with disabilities during the preceding fiscal year on
the Office's Internet websites.
(Source: P.A. 100-801, eff. 8-10-18.)

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Section 10. The Secretary of State Act is amended by
changing Section 19 as follows:
(15 ILCS 305/19)
Sec. 19. Contract aspirational goals. The Secretary of
State shall establish aspirational goals for contract awards
substantially in accordance with the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act, unless otherwise governed by other law. The Secretary of
State shall not be subject to the jurisdiction of the Business
Enterprise Council established under the Business Enterprise
for Minorities, Women, Veterans, and Persons with Disabilities
Act with regard to steps taken to achieve aspirational goals.
The Secretary of State shall annually post the Office's
utilization of businesses owned by minorities, women,
veterans, and persons with disabilities during the preceding
fiscal year on the Office's Internet websites.
(Source: P.A. 100-801, eff. 8-10-18.)
Section 15. The State Comptroller Act is amended by
changing Sections 23.9 and 23.10 as follows:
(15 ILCS 405/23.9)
Sec. 23.9. Minority Contractor Opportunity Initiative. The
State Comptroller Minority Contractor Opportunity Initiative

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is created to provide greater opportunities for minority-owned
businesses, women-owned businesses, veteran-owned businesses,
businesses owned by persons with disabilities, and small
businesses with 20 or fewer employees in this State to
participate in the State procurement process. The initiative
shall be administered by the Comptroller. Under this
initiative, the Comptroller is responsible for the following:
(i) outreach to minority-owned businesses, women-owned
businesses, veteran-owned businesses, businesses owned by
persons with disabilities, and small businesses capable of
providing services to the State; (ii) education of
minority-owned businesses, women-owned businesses,
veteran-owned businesses, businesses owned by persons with
disabilities, and small businesses concerning State
contracting and procurement; (iii) notification of
minority-owned businesses, women-owned businesses,
veteran-owned businesses, businesses owned by persons with
disabilities, and small businesses of State contracting
opportunities; and (iv) maintenance of an online database of
State contracts that identifies the contracts awarded to
minority-owned businesses, women-owned businesses,
veteran-owned businesses, businesses owned by persons with
disabilities, and small businesses that includes the total
amount paid by State agencies to contractors and the
percentage paid to minority-owned businesses, women-owned
businesses, veteran-owned businesses, businesses owned by

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persons with disabilities, and small businesses.
The Business Enterprise Council created under Section 5 of
the Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act shall provide the Comptroller
with names, Federal Employer Identification Numbers, and
designations of Business Enterprise Program certified vendors
to fulfill the Comptroller's responsibilities under this
Section, including, but not limited to, identification of
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities.
The Comptroller shall annually prepare and submit a report
to the Governor and the General Assembly concerning the
progress of this initiative including the following
information for the preceding fiscal year: (i) a statement of
the total amounts paid by each executive branch agency to
contractors since the previous report; (ii) the percentage of
the amounts that were paid to minority-owned businesses,
women-owned businesses, veteran-owned businesses, businesses
owned by persons with disabilities, and small businesses;
(iii) the successes achieved and the challenges faced by the
Comptroller in operating outreach programs for minorities,
women, veterans, persons with disabilities, and small
businesses; (iv) the challenges each executive branch agency
may face in hiring qualified minority, woman, veteran, and
small business employees and employees with disabilities and

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contracting with qualified minority-owned businesses,
women-owned businesses, veteran-owned businesses, businesses
owned by persons with disabilities, and small businesses; and
(v) any other information, findings, conclusions, and
recommendations for legislative or agency action, as the
Comptroller deems appropriate.
On and after the effective date of this amendatory Act of
the 97th General Assembly, any bidder or offeror awarded a
contract of $1,000 or more under Section 20-10, 20-15, 20-25,
or 20-30 of the Illinois Procurement Code is required to pay a
fee of $15 to cover expenses related to the administration of
this Section. The Comptroller shall deduct the fee from the
first check issued to the vendor under the contract and
deposit the fee into the Comptroller's Administrative Fund.
Contracts administered for statewide orders placed by agencies
(commonly referred to as "statewide master contracts") are
exempt from this fee.
Each Chief Procurement Officer shall provide the
Comptroller with names and Federal Employer Identification
Numbers of vendors registered in the Illinois Small Business
Set Aside Program to aid the Comptroller in fulfilling his or
her responsibilities under this Section.
(Source: P.A. 99-143, eff. 7-27-15; 100-391, eff. 8-25-17;
100-801, eff. 8-10-18.)
(15 ILCS 405/23.10)

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Sec. 23.10. Contract aspirational goals. The Comptroller
shall establish aspirational goals for contract awards
substantially in accordance with the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act, unless otherwise governed by other law. The Comptroller
shall not be subject to the jurisdiction of the Business
Enterprise Council established under the Business Enterprise
for Minorities, Women, Veterans, and Persons with Disabilities
Act with regard to steps taken to achieve aspirational goals.
The Comptroller shall annually post the Office's utilization
of businesses owned by minorities, women, veterans, and
persons with disabilities during the preceding fiscal year on
the Office's Internet websites.
(Source: P.A. 100-801, eff. 8-10-18.)
Section 20. The State Treasurer Act is amended by changing
Section 30 as follows:
(15 ILCS 505/30)
Sec. 30. Preferences for veterans, minorities, women, and
persons with disabilities.
(a) As used in this Section, : (1) the terms "minority
person", "woman", "veteran", "person with a disability",
"minority-owned business", "women-owned business",
"veteran-owned businesses", "business owned by a person with a
disability", "armed forces of the United States", and

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"control" have the meanings provided in Section 2 of the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act. ; and
(2) the terms "veteran", "qualified veteran-owned
small business", "qualified service-disabled
veteran-owned small business", "qualified
service-disabled veteran", and "armed forces of the United
States" have the meanings provided in Article 45 of the
Illinois Procurement Code.
(b) It is hereby declared to be the policy of the State
Treasurer to promote and encourage the use of businesses owned
by or under the control of qualified veterans of the armed
forces of the United States, qualified service-disabled
veterans, minority persons, women, or persons with a
disability in the area of goods and services. Furthermore, the
State Treasurer shall utilize such businesses to the greatest
extent feasible within the bounds of financial and fiduciary
prudence, and take affirmative steps to remove any barriers to
the full participation of such firms in the procurement and
contracting opportunities afforded.
(c) It shall be an aspirational goal of the State
Treasurer to use businesses owned by or under the control of
qualified veterans of the armed forces of the United States,
qualified service-disabled veterans, minority persons, women,
or persons with a disability for not less than 25% of the total
dollar amount of funds under management, purchases of

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investment securities, and other contracts, including, but not
limited to, the use of broker-dealers. The State Treasurer is
authorized to establish additional aspirational goals.
(d) When the State Treasurer procures goods and services,
whether through a request for proposal or otherwise, he or she
is authorized to incorporate preferences in the scoring
process for: (1) a minority-owned business, a women-owned
business, a business owned by a person with a disability, or a
qualified veteran-owned small business, or a qualified
service-disabled veteran-owned small business; and (2)
businesses having a record of support for increasing diversity
and inclusion in board membership, management, employment,
philanthropy, and supplier diversity, including investment
professionals and investment sourcing.
When the State Treasurer utilizes a financial institution
or determines the eligibility of a financial institution to
participate in a banking contract, investment contract,
investment activity, or other financial program of the State
Treasurer, he or she shall review the financial institution's
Community Reinvestment Act rating, record, and current level
of financial commitment to the community prior to making a
decision to utilize or determine the eligibility of such
financial institution.
(e) Beginning with fiscal year 2019, and at least annually
thereafter, the State Treasurer shall report on his or her
utilization of minority-owned businesses, women-owned

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businesses, businesses owned by a person with a disability,
and qualified veteran-owned small businesses, or qualified
service-disabled veteran-owned small businesses. The report
shall be published on the State Treasurer's official website.
(f) The provisions of this Section take precedence over
any goals established under the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act.
(Source: P.A. 102-297, eff. 8-6-21.)
Section 21. The Deposit of State Moneys Act is amended by
changing Section 1.1 as follows:
(15 ILCS 520/1.1) (from Ch. 130, par. 20.1)
Sec. 1.1. When investing or depositing public funds, each
custodian shall, to the extent permitted by this Act and by the
lawful and reasonable performance of his custodial duties,
invest or deposit such funds with or in minority-owned
financial institutions within this State. For the purposes of
this Section, "minority-owned financial institutions" means a
financial institution with 51% or more of the stock or equity
of the business owned by women, minority persons, military
veterans, qualified service-disabled veteran-owned, or persons
with disabilities as defined in Section 2 of the Business
Enterprise for Minorities, Women, Veterans, and Persons with
Disabilities Act and Section 45-57 of the Illinois Procurement

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Code.
(Source: P.A. 102-297, eff. 8-6-21.)
Section 25. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
is amended by changing Sections 605-503 and 605-1020 as
follows:
(20 ILCS 605/605-503)
Sec. 605-503. Entrepreneurship assistance centers.
(a) The Department shall establish and support, subject to
appropriation, entrepreneurship assistance centers, including
the issuance of grants, at career education agencies and
not-for-profit corporations, including, but not limited to,
local development corporations, chambers of commerce,
community-based business outreach centers, and other
community-based organizations. The purpose of the centers
shall be to train minority group members, women, individuals
with a disability, dislocated workers, veterans, and youth
entrepreneurs in the principles and practice of
entrepreneurship in order to prepare those persons to pursue
self-employment opportunities and to pursue a minority
business enterprise or a women-owned business enterprise. The
centers shall provide for training in all aspects of business
development and small business management as defined by the
Department.

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(b) The Department shall establish criteria for selection
and designation of the centers which shall include, but not be
limited to:
(1) the level of support for the center from local
post-secondary education institutions, businesses, and
government;
(2) the level of financial assistance provided at the
local and federal level to support the operations of the
center;
(3) the applicant's understanding of program goals and
objectives articulated by the Department;
(4) the plans of the center to supplement State and
local funding through fees for services which may be based
on a sliding scale based on ability to pay;
(5) the need for and anticipated impact of the center
on the community in which it will function;
(6) the quality of the proposed work plan and staff of
the center; and
(7) the extent of economic distress in the area to be
served.
(c) Each center shall:
(1) be operated by a board of directors representing
community leaders in business, education, finance, and
government;
(2) be incorporated as a not-for-profit corporation;
(3) be located in an area accessible to eligible

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clients;
(4) establish an advisory group of community business
experts, at least one-half of whom shall be representative
of the clientele to be served by the center, which shall
constitute a support network to provide counseling and
mentoring services to minority group members, women,
individuals with a disability, dislocated workers,
veterans, and youth entrepreneurs from the concept stage
of development through the first one to 2 years of
existence on a regular basis and as needed thereafter; and
(5) establish a referral system and linkages to
existing area small business assistance programs and
financing sources.
(d) Each entrepreneurship assistance center shall provide
needed services to eligible clients, including, but not
limited to: (i) orientation and screening of prospective
entrepreneurs; (ii) analysis of business concepts and
technical feasibility; (iii) market analysis; (iv) management
analysis and counseling; (v) business planning and financial
planning assistance; (vi) referrals to financial resources;
(vii) referrals to existing educational programs for training
in such areas as marketing, accounting, and other training
programs as may be necessary and available; and (viii)
referrals to business incubator facilities, when appropriate,
for the purpose of entering into agreements to access shared
support services.

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(e) Applications for grants made under this Section shall
be made in the manner and on forms prescribed by the
Department. The application shall include, but shall not be
limited to:
(1) a description of the training programs available
within the geographic area to be served by the center to
which eligible clients may be referred;
(2) designation of a program director;
(3) plans for providing ongoing technical assistance
to program graduates, including linkages with providers of
other entrepreneurial assistance programs and with
providers of small business technical assistance and
services;
(4) a program budget, including matching funds,
in-kind and otherwise, to be provided by the applicant;
and
(5) any other requirements as deemed necessary by the
Department.
(f) Grants made under this Section shall be disbursed for
payment of the cost of services and expenses of the program
director, the instructors of the participating career
education agency or not-for-profit corporation, the faculty
and support personnel thereof, and any other person in the
service of providing instruction and counseling in furtherance
of the program.
(g) The Department shall monitor the performance of each

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entrepreneurial assistance center and require quarterly
reports from each center at such time and in such a manner as
prescribed by the Department.
The Department shall also evaluate the entrepreneurial
assistance centers established under this Section and report
annually beginning on January 1, 2023, and on or before
January 1 of each year thereafter, the results of the
evaluation to the Governor and the General Assembly. The
report shall discuss the extent to which the centers serve
minority group members, women, individuals with a disability,
dislocated workers, veterans, and youth entrepreneurs; the
extent to which the training program is coordinated with other
assistance programs targeted to small and new businesses; the
ability of the program to leverage other sources of funding
and support; and the success of the program in aiding
entrepreneurs to start up new businesses, including the number
of new business start-ups resulting from the program. The
report shall recommend changes and improvements in the
training program and in the quality of supplemental technical
assistance offered to graduates of the training programs. The
report shall be made available to the public on the
Department's website. Between evaluation due dates, the
Department shall maintain the necessary records and data
required to satisfy the evaluation requirements.
(h) For purposes of this Section:
"Entrepreneurship assistance center" or "center" means the

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business development centers or programs which provide
assistance to primarily minority group members, women,
individuals with a disability, dislocated workers, veterans,
and youth entrepreneurs under this Section.
"Disability" means, with respect to an individual: (i) a
physical or mental impairment that substantially limits one or
more of the major life activities of an individual; (ii) a
record of such an impairment; or (iii) being regarded as
having an impairment.
"Minority business enterprise" has the same meaning as
provided for "minority-owned business" under Section 2 of the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.
"Minority group member" has the same meaning as provided
for "minority person" under Section 2 of the Business
Enterprise for Minorities, Women, Veterans, and Persons with
Disabilities Act.
"Women-owned business enterprise" has the same meaning as
provided for "women-owned business" under Section 2 of the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.
"Veteran" means a person who served in and who has
received an honorable or general discharge from, the United
States Army, Navy, Air Force, Marines, Coast Guard, or
reserves thereof, or who served in the Army National Guard,
Air National Guard, or Illinois National Guard.

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"Youth entrepreneur" means a person who is between the
ages of 16 and 29 years old and that is seeking community
support to start a business in Illinois.
(Source: P.A. 102-272, eff. 1-1-22; 102-821, eff. 1-1-23;
revised 12-8-22.)
(20 ILCS 605/605-1020)
Sec. 605-1020. Entrepreneur Learner's Permit pilot
program.
(a) Subject to appropriation, there is hereby established
an Entrepreneur Learner's Permit pilot program that shall be
administered by the Department beginning on July 1 of the
first fiscal year for which an appropriation of State moneys
is made for that purpose and continuing for the next 2
immediately succeeding fiscal years; however, the Department
is not required to administer the program in any fiscal year
for which such an appropriation has not been made. The purpose
of the program shall be to encourage and assist beginning
entrepreneurs in starting new businesses by providing
reimbursements to those entrepreneurs for any State filing,
permitting, or licensing fees associated with the formation of
such a business in the State.
(b) Applicants for participation in the Entrepreneur
Learner's Permit pilot program shall apply to the Department,
in a form and manner prescribed by the Department, within one
year after the formation of the business for which the

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entrepreneur seeks reimbursement of those fees. The Department
shall adopt rules for the review and approval of applications,
provided that it (1) shall give priority to applicants who are
women, veterans, or minority persons, or persons with a
disability or both, and (2) shall not approve any application
by a person who will not be a beginning entrepreneur.
Reimbursements under this Section shall be provided in the
manner determined by the Department. In no event shall an
applicant apply for participation in the program more than 3
times.
(c) The aggregate amount of all reimbursements provided by
the Department pursuant to this Section shall not exceed
$500,000 in any State fiscal year.
(d) On or before February 1 of the last calendar year
during which the pilot program is in effect, the Department
shall submit a report to the Governor and the General Assembly
on the cumulative effectiveness of the Entrepreneur Learner's
Permit pilot program. The review shall include, but not be
limited to, the number and type of businesses that were formed
in connection with the pilot program, the current status of
each business formed in connection with the pilot program, the
number of employees employed by each such business, the
economic impact to the State from the pilot program, the
satisfaction of participants in the pilot program, and a
recommendation as to whether the program should be continued.
The report to the General Assembly shall be filed with the

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Clerk of the House of Representatives and the Secretary of the
Senate in electronic form only, in the manner that the Clerk
and the Secretary shall direct.
(e) As used in this Section:
"Beginning entrepreneur" means an individual who, at
the time he or she applies for participation in the
program, has less than 5 years of experience as a business
owner and is not a current business owner.
"Woman", "veteran", and "minority person", and "person
with a disability" have the meanings given to those terms
in the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act.
(Source: P.A. 100-541, eff. 11-7-17; 100-785, eff. 8-10-18;
100-863, eff. 8-14-18; 101-81, eff. 7-12-19.)
Section 26. The Electric Vehicle Act is amended by
changing Section 45 as follows:
(20 ILCS 627/45)
Sec. 45. 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

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create benefits for Illinois residents.
(1) Illinois should increase the adoption of electric
vehicles in the State to 1,000,000 by 2030.
(2) Illinois should strive to be the best state in the
nation in which to drive and manufacture electric
vehicles.
(3) Widespread adoption of electric vehicles is
necessary to electrify the transportation sector,
diversify the transportation fuel mix, drive economic
development, and protect air quality.
(4) Accelerating the adoption of electric vehicles
will drive the decarbonization of Illinois' transportation
sector.
(5) Expanded infrastructure investment will help
Illinois more rapidly decarbonize the transportation
sector.
(6) Statewide adoption of electric vehicles requires
increasing access to electrification for all consumers.
(7) Widespread adoption of electric vehicles requires
increasing public access to charging equipment throughout
Illinois, especially in low-income and environmental
justice communities, where levels of air pollution burden
tend to be higher.
(8) Widespread adoption of electric vehicles and
charging equipment has the potential to provide customers
with fuel cost savings and electric utility customers with

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cost-saving benefits.
(9) Widespread adoption of electric vehicles can
improve an electric utility's electric system efficiency
and operational flexibility, including the ability of the
electric utility to integrate renewable energy resources
and make use of off-peak generation resources that support
the operation of charging equipment.
(10) Widespread adoption of electric vehicles should
stimulate innovation, competition, and increased choices
in charging equipment and networks and should also attract
private capital investments and create high-quality jobs
in Illinois.
(b) As used in this Section:
"Agency" means the Environmental Protection Agency.
"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;

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(2) hourly pricing electric rates;
(3) optimized charging programs or programs that
encourage charging at times beneficial to the electric
grid;
(4) optional demand-response programs specifically
related to electrification efforts;
(5) incentives for electrification and associated
infrastructure tied to using electricity at off-peak
times;
(6) incentives for electrification and associated
infrastructure targeted to medium-duty and heavy-duty
vehicles used by transit agencies;
(7) incentives for electrification and associated
infrastructure targeted to school buses;
(8) incentives for electrification and associated
infrastructure for medium-duty and heavy-duty government
and private fleet vehicles;
(9) low-income programs that provide access to
electric vehicles for communities where car ownership or
new car ownership is not common;
(10) incentives for electrification in eligible
communities;
(11) incentives or programs to enable quicker adoption
of electric vehicles by developing public charging
stations in dense areas, workplaces, and low-income
communities;

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(12) incentives or programs to develop electric
vehicle infrastructure that minimizes range anxiety,
filling the gaps in deployment, particularly in rural
areas and along highway corridors;
(13) incentives to encourage the development of
electrification and renewable energy generation in close
proximity in order to reduce grid congestion;
(14) offer support to low-income communities who are
experiencing financial and accessibility barriers such
that electric vehicle ownership is not an option; and
(15) other such programs as defined by the Commission.
"Black, indigenous, and people of color" or "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, Veterans, and Persons with Disabilities Act.
"Commission" means the Illinois Commerce Commission.
"Coordinator" means the Electric Vehicle Coordinator.
"Electric vehicle" means a vehicle that is exclusively
powered by and refueled by electricity, must be plugged in to
charge, and is licensed to drive on public roadways. "Electric
vehicle" does not include electric mopeds, electric
off-highway vehicles, or hybrid electric vehicles and
extended-range electric vehicles that are also equipped with
conventional fueled propulsion or auxiliary engines.
"Electric vehicle charging station" means a station that

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delivers electricity from a source outside an electric vehicle
into one or more electric vehicles.
"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.
"Equity investment eligible community" or "eligible
community" means the geographic areas throughout Illinois
which would most benefit from equitable investments by the
State designed to combat discrimination and foster sustainable
economic growth. Specifically, "eligible community" means the
following areas:
(1) areas where residents have been historically
excluded from economic opportunities, including
opportunities in the energy sector, as defined pursuant to
Section 10-40 of the Cannabis Regulation and Tax Act; and
(2) areas where residents have been historically
subject to disproportionate burdens of pollution,
including pollution from the energy sector, as established
by environmental justice communities as defined by the
Illinois Power Agency pursuant to Illinois Power Agency
Act, excluding any racial or ethnic indicators.
"Equity investment eligible person" or "eligible person"
means the persons who would most benefit from equitable
investments by the State designed to combat discrimination and
foster sustainable economic growth. Specifically, "eligible

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person" means the following people:
(1) persons whose primary residence is in an equity
investment eligible community;
(2) persons who are graduates of or currently enrolled
in the foster care system; or
(3) persons who were formerly incarcerated.
"Low-income" means persons and families whose income does
not exceed 80% of the state median income for the current State
fiscal year as established by the U.S. Department of Health
and Human Services.
"Make-ready infrastructure" means the electrical and
construction work necessary between the distribution circuit
to the connection point of charging equipment.
"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.
(c) The Commission shall initiate a workshop process no
later than November 30, 2021 for the purpose of soliciting
input on the design of beneficial electrification programs
that the utility shall offer. The workshop shall be

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coordinated by the Staff of the Commission, or a facilitator
retained by Staff, and shall be organized and facilitated in a
manner that encourages representation from diverse
stakeholders, including stakeholders representing
environmental justice and low-income communities, and ensures
equitable opportunities for participation, without requiring
formal intervention or representation by an attorney.
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 to the distribution system from electric
vehicle usage;
(3) the avoidance and reduction in capacity costs from
optimized charging and off-peak charging;
(4) energy price and cost reductions;
(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) current barriers to increasing access among
populations that have limited access to electric vehicle
ownership, communities significantly impacted by
transportation-related pollution, and market segments that

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create disproportionate pollution impacts;
(8) benefits of and incentives for medium-duty and
heavy-duty fleet vehicle electrification;
(9) opportunities for eligible communities to benefit
from electrification;
(10) geographic areas and market segments that should
be prioritized for electrification infrastructure
investment.
The workshops shall consider barriers, incentives,
enabling rate structures, and other opportunities for the bill
reduction and environmental benefits described in this
subsection.
The workshop process shall conclude no later than February
28, 2022. Following the workshop, the Staff of the Commission,
or the facilitator retained by the Staff, shall prepare and
submit a report, no later than March 31, 2022, to the
Commission that includes, but is not limited to,
recommendations for transportation electrification investment
or incentives in the following areas:
(i) publicly accessible Level 2 and fast-charging
stations, with a focus on bringing access to
transportation electrification in densely populated areas
and workplaces within eligible communities;
(ii) medium-duty and heavy-duty charging
infrastructure used by government and private fleet
vehicles that serve or travel through environmental

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justice or eligible communities;
(iii) medium-duty and heavy-duty charging
infrastructure used in school bus operations, whether
private or public, that primarily serve governmental or
educational institutions, and also serve or travel through
environmental justice or eligible communities;
(iv) public transit medium-duty and heavy-duty
charging infrastructure, developed in consultation with
public transportation agencies; and
(v) publicly accessible Level 2 and fast-charging
stations targeted to fill gaps in deployment, particularly
in rural areas and along State highway corridors.
The report must also identify the participants in the
process, program designs proposed during the process,
estimates of the costs and benefits of proposed programs, any
material issues that remained unresolved at the conclusions of
such process, and any recommendations for workshop process
improvements. The report shall be used by the Commission to
inform and evaluate the cost effectiveness and achievement of
goals within the submitted Beneficial Electrification Plans.
(d) No later than July 1, 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 plan shall take into consideration recommendations
from the workshop report described in this Section. Within 45

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days after the filing of the Beneficial Electrification Plan,
the Commission shall, with reasonable notice, open an
investigation to consider whether the plan meets the
objectives and contains the information required by this
Section. The Commission shall determine if the proposed plan
is cost-beneficial and in the public interest. When
considering if the plan is in the public interest and
determining appropriate levels of cost recovery for
investments and expenditures related to programs proposed by
an electric utility, the Commission shall consider whether the
investments and other expenditures are designed and reasonably
expected to:
(1) maximize total energy cost savings and rate
reductions so that nonparticipants can benefit;
(2) address environmental justice interests by
ensuring there are significant opportunities for residents
and businesses in eligible communities to directly
participate in and benefit from beneficial electrification
programs;
(3) support at least a 40% investment of make-ready
infrastructure incentives to facilitate the rapid
deployment of charging equipment in or serving
environmental justice, low-income, and eligible
communities; however, nothing in this subsection is
intended to require a specific amount of spending in a
particular geographic area;

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(4) support at least a 5% investment target in
electrifying medium-duty and heavy-duty school bus and
diesel public transportation vehicles located in or
serving environmental justice, low-income, and eligible
communities in order to provide those communities and
businesses with greater economic investment,
transportation opportunities, and a cleaner environment so
they can directly benefit from transportation
electrification efforts; however, nothing in this
subsection is intended to require a specific amount of
spending in a particular geographic area;
(5) stimulate innovation, competition, private
investment, and increased consumer choices in electric
vehicle charging equipment and networks;
(6) contribute to the reduction of carbon emissions
and meeting air quality standards, including improving air
quality in eligible communities who disproportionately
suffer from emissions from the medium-duty and heavy-duty
transportation sector;
(7) support the efficient and cost-effective use of
the electric grid in a manner that supports electric
vehicle charging operations; and
(8) provide resources to support private investment in
charging equipment for uses in public and private charging
applications, including residential, multi-family, fleet,
transit, community, and corridor applications.

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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, net revenue from all electric
charging in the service territory, 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, including the impact on customer rates.
The Commission shall approve, approve with modifications,
or reject the plan within 270 days from the date of filing. The
Commission may approve the plan if it finds that the plan will
achieve the goals described in this Section and contains the
information described in this Section. Proceedings under this
Section shall proceed according to the rules provided by
Article IX of the Public Utilities Act. Information contained
in the approved plan shall be considered part of the record in
any Commission proceeding under Section 16-107.6 of the Public
Utilities Act, provided that a final order has not been
entered prior to the initial filing date. The Beneficial
Electrification Plan shall specifically address, at a minimum,
the following:
(i) make-ready investments to facilitate the rapid

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deployment of charging equipment throughout the State,
facilitate the electrification of public transit and other
vehicle fleets in the light-duty, medium-duty, and
heavy-duty sectors, and align with Agency-issued rebates
for charging equipment;
(ii) the development and implementation of beneficial
electrification programs, including time-of-use rates and
their benefit for electric vehicle users and for all
customers, 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;
(iii) optional commercial tariffs utilizing
alternatives to traditional demand-based rate structures
to facilitate charging for light-duty, heavy-duty, light
duty, heavy duty, and fleet electric vehicles;
(iv) financial and other challenges to electric
vehicle usage in low-income communities, and strategies
for overcoming those challenges, particularly in
communities where and for people for whom car ownership is
not an option;
(v) methods of minimizing ratepayer impacts and
exempting or minimizing, to the extent possible,

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low-income ratepayers from the costs associated with
facilitating the expansion of electric vehicle charging;
(vi) plans to increase access to Level 3 Public
Electric Vehicle Charging Infrastructure 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;
(vii) whether to establish charging standards for type
of plugs eligible for investment or incentive programs,
and if so, what standards;
(viii) 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, any other
unit of government in the State, any national programs, or
any unit of the federal government;
(ix) 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
(x) customer education, outreach, and incentive

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programs that increase awareness of the programs and the
benefits of transportation electrification, including
direct outreach to eligible communities. ;
(e) Proceedings under this Section shall proceed according
to the rules provided by Article IX of the Public Utilities
Act. Information contained in the approved plan shall be
considered part of the record in any Commission proceeding
under Section 16-107.6 of the Public Utilities Act, provided
that a final order has not been entered prior to the initial
filing date.
(f) The utility shall file an update to the plan on July 1,
2024 and every 3 years thereafter. This update shall describe
transportation investments made during the prior plan period,
investments planned for the following 24 months, and updates
to the information required by this Section. Beginning with
the first update, the utility shall develop the plan in
conjunction with the distribution system planning process
described in Section 16-105.17, including incorporation of
stakeholder feedback from that process.
(g) Within 35 days after the utility files its report, the
Commission shall, upon its own initiative, open an
investigation regarding the utility's plan update to
investigate whether the objectives described in this Section
are being achieved. The Commission shall determine whether
investment targets should be increased based on achievement of
spending goals outlined in the Beneficial Electrification Plan

SB0238 - 34 - LRB103 24882 DTM 51215 b
and consistency with outcomes directed in the plan stakeholder
workshop report. If the Commission finds, after notice and
hearing, that the utility's plan is materially deficient, the
Commission shall issue an order requiring the utility to
devise a corrective action plan, subject to Commission
approval, to bring the plan into compliance with the goals of
this Section. The Commission's order shall be entered within
270 days after the utility files its annual report. The
contents of a plan filed under this Section shall be available
for evidence in Commission proceedings. However, omission from
an approved plan shall not render any future utility
expenditure to be considered unreasonable or imprudent. The
Commission may, upon sufficient evidence, allow expenditures
that were not part of any particular distribution plan. The
Commission shall consider revenues from electric vehicles in
the utility's service territory in evaluating the retail rate
impact. The retail rate impact from the development of
electric vehicle infrastructure shall not exceed 1% per year
of the total annual revenue requirements of the utility.
(h) In meeting the requirements of this Section, the
utility shall demonstrate efforts to increase the use of
contractors and electric vehicle charging station installers
that meet multiple workforce equity actions, including, but
not limited to:
(1) the business is headquartered in or the person
resides in an eligible community;

SB0238 - 35 - LRB103 24882 DTM 51215 b
(2) the business is majority owned by eligible person
or the contractor is an eligible person;
(3) the business or person is certified by another
municipal, State, federal, or other certification for
disadvantaged businesses;
(4) the business or person meets the eligibility
criteria for a certification program such as:
(A) certified under Section 2 of the Business
Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act;
(B) certified by another municipal, State,
federal, or other certification for disadvantaged
businesses;
(C) submits an affidavit showing that the vendor
meets the eligibility criteria for a certification
program such as those in items (A) and (B); or
(D) if the vendor is a nonprofit, meets any of the
criteria in those in item (A), (B), or (C) with the
exception that the nonprofit is not required to meet
any criteria related to being a for-profit entity, or
is controlled by a board of directors that consists of
51% or greater individuals who are equity investment
eligible persons; or
(E) ensuring that program implementation
contractors and electric vehicle charging station
installers pay employees working on electric vehicle

SB0238 - 36 - LRB103 24882 DTM 51215 b
charging installations at or above the prevailing wage
rate as published by the Department of Labor.
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.
(i) Program data collection.
(1) In order to ensure that the benefits provided to
Illinois residents and business by the clean energy
economy are equitably distributed across the State, it is
necessary to accurately measure the applicants and
recipients of this Program. The purpose of this paragraph
is to require the implementing utilities to collect all
data from Program applicants and beneficiaries to track
and improve equitable distribution of benefits across
Illinois communities. The further purpose is to measure
any potential impact of racial discrimination on the
distribution of benefits and provide the utilities the
information necessary to correct any discrimination
through methods consistent with State and federal law.
(2) The implementing utilities shall collect
demographic and geographic data for each applicant and
each person or business awarded benefits or contracts
under this Program.
(3) The implementing utilities shall collect the
following information from applicants and Program or

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procurement beneficiaries where applicable:
(A) demographic information, including racial or
ethnic identity for real persons employed, contracted,
or subcontracted through the program;
(B) demographic information, including racial or
ethnic identity of business owners;
(C) geographic location of the residency of real
persons or geographic location of the headquarters for
businesses; and
(D) any other information necessary for the
purpose of achieving the purpose of this paragraph.
(4) The utility shall publish, at least annually,
aggregated information on the demographics of program and
procurement applicants and beneficiaries. The utilities
shall protect personal and confidential business
information as necessary.
(5) The utilities shall conduct a regular review
process to confirm the accuracy of reported data.
(6) On a quarterly basis, utilities shall collect data
necessary to ensure compliance with this Section and shall
communicate progress toward compliance to program
implementation contractors and electric vehicle charging
station installation vendors.
(7) Utilities filing Beneficial Electrification Plans
under this Section shall report annually to the Illinois
Commerce Commission and the General Assembly on how

SB0238 - 38 - LRB103 24882 DTM 51215 b
hiring, contracting, job training, and other practices
related to its Beneficial electrification programs enhance
the diversity of vendors working on such programs. These
reports must include data on vendor and employee
diversity.
(j) The provisions of this Section are severable under
Section 1.31 of the Statute on Statutes.
(Source: P.A. 102-662, eff. 9-15-21; 102-820, eff. 5-13-22;
revised 9-14-22.)
Section 30. The Illinois Enterprise Zone Act is amended by
changing Section 4 as follows:
(20 ILCS 655/4) (from Ch. 67 1/2, par. 604)
Sec. 4. Qualifications for enterprise zones.
(1) An area is qualified to become an enterprise zone
which:
(a) is a contiguous area, provided that a zone area
may exclude wholly surrounded territory within its
boundaries;
(b) comprises a minimum of one-half square mile and
not more than 12 square miles, or 15 square miles if the
zone is located within the jurisdiction of 4 or more
counties or municipalities, in total area, exclusive of
lakes and waterways; however, in such cases where the
enterprise zone is a joint effort of three or more units of

SB0238 - 39 - LRB103 24882 DTM 51215 b
government, or two or more units of government if situated
in a township which is divided by a municipality of
1,000,000 or more inhabitants, and where the certification
has been in effect at least one year, the total area shall
comprise a minimum of one-half square mile and not more
than thirteen square miles in total area exclusive of
lakes and waterways;
(c) (blank);
(d) (blank);
(e) is (1) entirely within a municipality or (2)
entirely within the unincorporated areas of a county,
except where reasonable need is established for such zone
to cover portions of more than one municipality or county
or (3) both comprises (i) all or part of a municipality and
(ii) an unincorporated area of a county; and
(f) meets 3 or more of the following criteria:
(1) all or part of the local labor market area has
had an annual average unemployment rate of at least
120% of the State's annual average unemployment rate
for the most recent calendar year or the most recent
fiscal year as reported by the Department of
Employment Security;
(2) designation will result in the development of
substantial employment opportunities by creating or
retaining a minimum aggregate of 1,000 full-time
equivalent jobs due to an aggregate investment of

SB0238 - 40 - LRB103 24882 DTM 51215 b
$100,000,000 or more, and will help alleviate the
effects of poverty and unemployment within the local
labor market area;
(3) all or part of the local labor market area has
a poverty rate of at least 20% according to American
Community Survey; 35% or more of families with
children in the area are living below 130% of the
poverty line, according to the latest American
Community Survey; or 20% or more households in the
local labor market area receive food stamps or
assistance under Supplemental Nutrition Assistance
Program ("SNAP") according to the latest American
Community Survey;
(4) an abandoned coal mine, a brownfield (as
defined in Section 58.2 of the Environmental
Protection Act), or an inactive nuclear-powered
electrical generation facility where spent nuclear
fuel is stored on-site is located in the proposed zone
area, or all or a portion of the proposed zone was
declared a federal disaster area in the 3 years
preceding the date of application;
(5) the local labor market area contains a
presence of large employers that have downsized over
the years, the labor market area has experienced plant
closures in the 5 years prior to the date of
application affecting more than 50 workers, or the

SB0238 - 41 - LRB103 24882 DTM 51215 b
local labor market area has experienced State or
federal facility closures in the 5 years prior to the
date of application affecting more than 50 workers;
(6) based on data from Multiple Listing Service
information or other suitable sources, the local labor
market area contains a high floor vacancy rate of
industrial or commercial properties, vacant or
demolished commercial and industrial structures are
prevalent in the local labor market area, or
industrial structures in the local labor market area
are not used because of age, deterioration, relocation
of the former occupants, or cessation of operation;
(7) the applicant demonstrates a substantial plan
for using the designation to improve the State and
local government tax base, including income, sales,
and property taxes, including a plan for disposal of
publicly-owned real property by the methods described
in Section 10 of this Act;
(8) significant public infrastructure is present
in the local labor market area in addition to a plan
for infrastructure development and improvement;
(9) high schools or community colleges located
within the local labor market area are engaged in ACT
Work Keys, Manufacturing Skills Standard
Certification, or other industry-based credentials
that prepare students for careers;

SB0238 - 42 - LRB103 24882 DTM 51215 b
(10) (blank); or
(11) the applicant demonstrates a substantial plan
for using the designation to encourage: (i)
participation by businesses owned by minorities,
women, veterans, and persons with disabilities, as
those terms are defined in the Business Enterprise for
Minorities, Women, Veterans, and Persons with
Disabilities Act; and (ii) the hiring of minorities,
women, and persons with disabilities.
As provided in Section 10-5.3 of the River Edge
Redevelopment Zone Act, upon the expiration of the term of
each River Edge Redevelopment Zone in existence on August 7,
2012 (the effective date of Public Act 97-905), that River
Edge Redevelopment Zone will become available for its previous
designee or a new applicant to compete for designation as an
enterprise zone. No preference for designation will be given
to the previous designee of the zone.
(2) Any criteria established by the Department or by law
which utilize the rate of unemployment for a particular area
shall provide that all persons who are not presently employed
and have exhausted all unemployment benefits shall be
considered unemployed, whether or not such persons are
actively seeking employment.
(Source: P.A. 101-81, eff. 7-12-19; 102-108, eff. 1-1-22.)
Section 31. The Reimagining Electric Vehicles in Illinois

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Act is amended by changing Section 10 as follows:
(20 ILCS 686/10)
Sec. 10. Definitions. As used in this Act:
"Advanced battery" means a battery that consists of a
battery cell that can be integrated into a module, pack, or
system to be used in energy storage applications, including a
battery used in an electric vehicle or the electric grid.
"Advanced battery component" means a component of an
advanced battery, including materials, enhancements,
enclosures, anodes, cathodes, electrolytes, cells, and other
associated technologies that comprise an advanced battery.
"Agreement" means the agreement between a taxpayer and the
Department under the provisions of Section 45 of this Act.
"Applicant" means a taxpayer that (i) operates a business
in Illinois or is planning to locate a business within the
State of Illinois and (ii) is engaged in interstate or
intrastate commerce for the purpose of manufacturing electric
vehicles, electric vehicle component parts, or electric
vehicle power supply equipment. "Applicant" does not include a
taxpayer who closes or substantially reduces by more than 50%
operations at one location in the State and relocates
substantially the same operation to another location in the
State. This does not prohibit a Taxpayer from expanding its
operations at another location in the State. This also does
not prohibit a Taxpayer from moving its operations from one

SB0238 - 44 - LRB103 24882 DTM 51215 b
location in the State to another location in the State for the
purpose of expanding the operation, provided that the
Department determines that expansion cannot reasonably be
accommodated within the municipality or county 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.
"Battery raw materials" means the raw and processed form
of a mineral, metal, chemical, or other material used in an
advanced battery component.
"Battery raw materials refining service provider" means a
business that operates a facility that filters, sifts, and
treats battery raw materials for use in an advanced battery.
"Battery recycling and reuse manufacturer" means a
manufacturer that is primarily engaged in the recovery,
retrieval, processing, recycling, or recirculating of battery
raw materials for new use in electric vehicle batteries.
"Capital improvements" means the purchase, renovation,
rehabilitation, or construction of permanent tangible land,
buildings, structures, equipment, and furnishings in an
approved project sited in Illinois and expenditures for goods
or services that are normally capitalized, including

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organizational costs and research and development costs
incurred in Illinois. For land, buildings, structures, and
equipment that are leased, the lease must equal or exceed the
term of the agreement, and the cost of the property shall be
determined from the present value, using the corporate
interest rate prevailing at the time of the application, of
the lease payments.
"Credit" means either a "REV Illinois Credit" or a "REV
Construction Jobs Credit" agreed to between the Department and
applicant under this Act.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Electric vehicle" means a vehicle that is exclusively
powered by and refueled by electricity, including electricity
generated through a hydrogen fuel cells or solar technology.
"Electric vehicle" does not include hybrid electric vehicles,
electric bicycles, or extended-range electric vehicles that
are also equipped with conventional fueled propulsion or
auxiliary engines.
"Electric vehicle manufacturer" means a new or existing
manufacturer that is primarily focused on reequipping,
expanding, or establishing a manufacturing facility in
Illinois that produces electric vehicles as defined in this
Section.

SB0238 - 46 - LRB103 24882 DTM 51215 b
"Electric vehicle component parts manufacturer" means a
new or existing manufacturer that is focused on reequipping,
expanding, or establishing a manufacturing facility in
Illinois that produces parts or accessories used in electric
vehicles, as defined by this Section, including advanced
battery component parts. The changes to this definition of
"electric vehicle component parts manufacturer" apply to
agreements under this Act that are entered into on or after the
effective date of this amendatory Act of the 102nd General
Assembly.
"Electric vehicle power supply equipment" means the
equipment used specifically for the purpose of delivering
electricity to an electric vehicle, including hydrogen fuel
cells or solar refueling infrastructure.
"Electric vehicle power supply manufacturer" means a new
or existing manufacturer that is focused on reequipping,
expanding, or establishing a manufacturing facility in
Illinois that produces electric vehicle power supply equipment
used for the purpose of delivering electricity to an electric
vehicle, including hydrogen fuel cell or solar refueling
infrastructure.
"Energy Transition Area" means a county with less than
100,000 people or a municipality that contains one or more of
the following:
(1) a fossil fuel plant that was retired from service
or has significant reduced service within 6 years before

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the time of the application or will be retired or have
service significantly reduced within 6 years following the
time of the application; or
(2) a coal mine that was closed or had operations
significantly reduced within 6 years before the time of
the application or is anticipated to be closed or have
operations significantly reduced within 6 years following
the time of the application.
"Full-time employee" means an individual who is employed
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. An
individual for whom a W-2 is issued by a Professional Employer
Organization (PEO) is a full-time employee if employed in the
service of the applicant for consideration for at least 35
hours each week.
"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.
"Institution of higher education" or "institution" means
any accredited public or private university, college,
community college, business, technical, or vocational school,
or other accredited educational institution offering degrees
and instruction beyond the secondary school level.

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"Minority person" means a minority person as defined in
the Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.
"New employee" means a newly-hired full-time employee
employed to work at the project site and whose work is directly
related to the project.
"Noncompliance date" means, in the case of a taxpayer that
is not complying with the requirements of the agreement or the
provisions of this Act, the day following the last date upon
which the taxpayer was in compliance with the requirements of
the agreement and the provisions of this Act, as determined by
the Director, pursuant to Section 70.
"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.
"Placed in service" means the state or condition of
readiness, availability for a specifically assigned function,
and the facility is constructed and ready to conduct its
facility operations to manufacture goods.
"Professional employer organization" (PEO) means an
employee leasing company, as defined in Section 206.1 of the
Illinois Unemployment Insurance Act.
"Program" means the Reimagining Electric Vehicles in
Illinois Program (the REV Illinois Program) established in
this Act.
"Project" or "REV Illinois Project" means a for-profit

SB0238 - 49 - LRB103 24882 DTM 51215 b
economic development activity for the manufacture of electric
vehicles, electric vehicle component parts, or electric
vehicle power supply equipment which is designated by the
Department as a REV Illinois Project and is the subject of an
agreement.
"Recycling facility" means a location at which the
taxpayer disposes of batteries and other component parts in
manufacturing of electric vehicles, electric vehicle component
parts, or electric vehicle power supply equipment.
"Related member" means a person that, with respect to the
taxpayer during any portion of the taxable year, is any one of
the following:
(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, 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

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of stock from 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
aggregate at least 50% of the profits, capital, stock, or
value of the taxpayer.
(5) A person to or from whom there is an attribution of
stock ownership in accordance with Section 1563(e) of the
Internal Revenue Code, except, for purposes of determining
whether a person is a related member under this paragraph,
20% shall be substituted for 5% wherever 5% appears in
Section 1563(e) of the Internal Revenue Code.
"Retained employee" means a full-time employee employed by
the taxpayer prior to the term of the Agreement who continues
to be employed during the term of the agreement whose job
duties are directly related to the project. The term "retained
employee" does not include any individual who has a direct or
an indirect ownership interest of at least 5% in the profits,
equity, capital, or value of the taxpayer or a child,

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grandchild, parent, or spouse, other than a spouse who is
legally separated from the individual, of any individual who
has a direct or indirect ownership of at least 5% in the
profits, equity, capital, or value of the taxpayer. The
changes to this definition of "retained employee" apply to
agreements for credits under this Act that are entered into on
or after the effective date of this amendatory Act of the 102nd
General Assembly.
"REV Illinois credit" means a credit agreed to between the
Department and the applicant under this Act that is based on
the incremental income tax attributable to new employees and,
if applicable, retained employees, and on training costs for
such employees at the applicant's project.
"REV construction jobs credit" means a credit agreed to
between the Department and the applicant under this Act that
is based on the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities.
"Statewide baseline" means the total number of full-time
employees of the applicant and any related member employed by
such entities at the time of application for incentives under
this Act.
"Taxpayer" means an individual, corporation, partnership,
or other entity that has a legal obligation to pay Illinois
income taxes and file an Illinois income tax return.
"Training costs" means costs incurred to upgrade the

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technological skills of full-time employees in Illinois and
includes: curriculum development; training materials
(including scrap product costs); trainee domestic travel
expenses; instructor costs (including wages, fringe benefits,
tuition and domestic travel expenses); rent, purchase or lease
of training equipment; and other usual and customary training
costs. "Training costs" do not include costs associated with
travel outside the United States (unless the Taxpayer receives
prior written approval for the travel by the Director based on
a showing of substantial need or other proof the training is
not reasonably available within the United States), wages and
fringe benefits of employees during periods of training, or
administrative cost related to full-time employees of the
taxpayer.
"Underserved area" means any geographic areas as defined
in Section 5-5 of the Economic Development for a Growing
Economy Tax Credit Act.
(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
102-1112, eff. 12-21-22.)
Section 32. The Energy Transition Act is amended by
changing Sections 5-5, 5-45, and 5-55 as follows:
(20 ILCS 730/5-5)
(Section scheduled to be repealed on September 15, 2045)
Sec. 5-5. Definitions. As used in this Act:

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"Apprentice" means a participant in an apprenticeship
program approved by and registered with the United States
Department of Labor's Bureau of Apprenticeship and Training.
"Apprenticeship program" means an apprenticeship and
training program approved by and registered with the United
States Department of Labor's Bureau of Apprenticeship and
Training.
"Black, indigenous, and people of color" or "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, Veterans, and Persons with Disabilities Act.
"Community-based organizations" means an organization
that: (1) provides employment, skill development, or related
services to members of the community; (2) includes community
colleges, nonprofits, and local governments; (3) has at least
one main operating office in the community or region it
serves; and (4) demonstrates relationships with local
residents and other organizations serving the community.
"Department" means the Department of Commerce and Economic
Opportunity, unless the text solely specifies a particular
Department.
"Director" means the Director of Commerce and Economic
Opportunity.
"Equity eligible contractor" or "eligible contractor"
means:

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(1) a business that is majority-owned by equity
investment eligible individuals or persons who are or have
been participants in the Clean Jobs Workforce Network
Program, Clean Energy Contractor Incubator Program,
Returning Residents Clean Jobs Training Program, Illinois
Climate Works Preapprenticeship Program, or Clean Energy
Primes Contractor Accelerator Program;
(2) a nonprofit or cooperative that is
majority-governed by equity investment eligible
individuals or persons who are or have been participants
in the Clean Jobs Workforce Network Program, Clean Energy
Contractor Incubator Program, Returning Residents Clean
Jobs Training Program, Illinois Climate Works
Preapprenticeship Program, or Clean Energy Primes
Contractor Accelerator Program; or
(3) an equity investment eligible person or an
individual who is or has been a participant in the Clean
Jobs Workforce Network Program, Clean Energy Contractor
Incubator Program, Returning Residents Clean Jobs Training
Program, Illinois Climate Works Preapprenticeship Program,
or Clean Energy Primes Contractor Accelerator Program and
who is offering personal services as an independent
contractor.
"Equity focused populations" means (i) low-income persons;
(ii) persons residing in equity investment eligible
communities; (iii) persons who identify as black, indigenous,

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and people of color; (iv) formerly convicted persons; (v)
persons who are or were in the child welfare system; (vi)
energy workers; (vii) dependents of displaced energy workers;
(viii) women; (ix) LGBTQ+, transgender, or gender
nonconforming persons; (x) persons with disabilities; and (xi)
members of any of these groups who are also youth.
"Equity investment eligible community" and "eligible
community" are synonymous and mean the geographic areas
throughout Illinois which would most benefit from equitable
investments by the State designed to combat discrimination and
foster sustainable economic growth. Specifically, the eligible
community means the following areas:
(1) R3 Areas as established pursuant to Section 10-40
of the Cannabis Regulation and Tax Act, where residents
have historically been excluded from economic
opportunities, including opportunities in the energy
sector; and
(2) Environmental justice communities, as defined by
the Illinois Power Agency pursuant to the Illinois Power
Agency Act, but excluding racial and ethnic indicators,
where residents have historically been subject to
disproportionate burdens of pollution, including pollution
from the energy sector.
"Equity investment eligible person" and "eligible person"
are synonymous and mean the persons who would most benefit
from equitable investments by the State designed to combat

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discrimination and foster sustainable economic growth.
Specifically, eligible persons means the following people:
(1) persons whose primary residence is in an equity
investment eligible community;
(2) persons who are graduates of or currently enrolled
in the foster care system; or
(3) persons who were formerly incarcerated.
"Climate Works Hub" means a nonprofit organization
selected by the Department to act as a workforce intermediary
and to participate in the Illinois Climate Works
Preapprenticeship Program. To qualify as a Climate Works Hub,
the organization must demonstrate the following:
(1) the ability to effectively serve diverse and
underrepresented populations, including by providing
employment services to such populations;
(2) experience with the construction and building
trades;
(3) the ability to recruit, prescreen, and provide
preapprenticeship training to prepare workers for
employment in the construction and building trades; and
(4) a plan to provide the following:
(A) preparatory classes;
(B) workplace readiness skills, such as resume
preparation and interviewing techniques;
(C) strategies for overcoming barriers to entry
and completion of an apprenticeship program; and

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(D) any prerequisites for acceptance into an
apprenticeship program.
(Source: P.A. 102-662, eff. 9-15-21.)
(20 ILCS 730/5-45)
(Section scheduled to be repealed on September 15, 2045)
Sec. 5-45. Clean Energy Contractor Incubator Program.
(a) As used in this Section, "community-based
organization" means a nonprofit organization, including an
accredited public college or university that:
(1) has a history of providing business-related
assistance and knowledge to help entrepreneurs start, run,
and grow their businesses;
(2) has knowledge of construction and clean energy
trades;
(3) demonstrates relationships with local residents
and other organizations serving the community; and
(4) demonstrates the ability to effectively serve
diverse and underrepresented populations.
(b) Subject to appropriation, the Department shall
develop, and through the Regional Administrators, administer
the Clean Energy Contractor Incubator Program ("Program") to
create a network of 13 Program delivery Hub Sites with program
elements delivered by community-based organizations and their
subcontractors geographically distributed across the State,
including at least one Hub Site located in or near each of the

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following areas: Chicago (South Side), Chicago (Southwest and
West Sides), Waukegan, Rockford, Aurora, Joliet, Peoria,
Champaign, Danville, Decatur, Carbondale, East St. Louis, and
Alton.
(c) In admitting program participants, for each Contractor
Incubator Hub Site the Regional Administrators shall:
(1) in each Hub Site where the applicant pool allows:
(A) dedicate at least one-third of program
placements to the owners of clean energy contractor
businesses and nonprofits who reside in a geographic
area that is impacted by economic and environmental
challenges, defined as an area that is both (i) an R3
Area, as defined pursuant to Section 10-40 of the
Cannabis Regulation and Tax Act, and (ii) an
environmental justice community, as defined by the
Illinois Power Agency, excluding any racial or ethnic
indicators used by the agency unless and until the
constitutional basis for their inclusion in
determining program admissions is established. Among
applicants that satisfy these criteria, preference
shall be given to applicants who face barriers to
employment, such as low educational attainment, prior
involvement with the criminal legal system, and
language barriers; and applicants that are graduates
of or currently enrolled in the foster care system;
and

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(B) dedicate at least two-thirds of program
placements to the owners of clean energy contractor
businesses and nonprofits that satisfy the criteria in
paragraph (1) or who reside in eligible communities.
Among applicants who live in eligible communities,
preference shall be given to applicants who face
barriers to employment, such as low educational
attainment, prior involvement with the criminal legal
system, and language barriers; and applicants that are
graduates of or currently enrolled in the foster care
system; and
(2) prioritize the remaining program placements for:
applicants who are displaced energy workers as defined in
the Energy Community Reinvestment Act; persons who face
barriers to employment, including low educational
attainment, prior involvement with the criminal legal
system, and language barriers; and applicants who are
graduates of or currently enrolled in the foster care
system, regardless of the applicants' area of residence.
Consideration shall also be given to any current or past
participant in the Clean Jobs Workforce Network Program,
Illinois Climate Works Preapprenticeship Program, or Returning
Residents Clean Energy Jobs Training Program.
The Department and Regional Administrators shall protect
the confidentiality of any personal information provided by
program applicants regarding the applicant's status as a

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formerly incarcerated person or foster care recipient;
however, the Department or Regional Administrators may publish
aggregated data on the number of participants that were
formerly incarcerated or foster care recipients so long as
that publication protects the identities of those persons.
Any person who applies to the program may elect not to
share with the Department or Regional Administrators whether
he or she is a graduate or currently enrolled in the foster
care system or was formerly convicted.
(d) Program elements at each Hub Site shall be provided by
a local community-based organization. The Department shall
initially select a community-based organization in each Hub
Site and shall subsequently select a community-based
organization in each Hub Site every 3 years. Community-based
organizations delivering program elements outlined in
subsection (e) 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.
(e) The Clean Energy Contractor Incubator Program shall:
(1) provide access to low-cost capital for small clean
energy businesses and contractors;
(2) provide support for obtaining financial assurance,

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including, but not limited to: bonding; back office
services; insurance, permits, training and certifications;
business planning; and low-interest loans;
(3) train, mentor, and provide other support needed to
allow participant contractors to: (i) build their
businesses and connect to specific projects, (ii) register
as approved vendors, (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) ensure that participant contractors, community
partners, and potential contractor clients are aware of
and engaged in the Program;
(5) connect participant contractors with the
Department of Labor for resources, training, and technical
support on prevailing wage compliance;
(6) provide recruitment and ongoing engagement with
entities that hire contractors and subcontractors,
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, events, and
collaborating with other Hub Sites.
(f) Funding for the Program and independent evaluations as
described in subsection (h) are subject to appropriation from

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the Energy Transition Assistance Fund.
(g) 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.
Program performance metrics include, but are not limited to:
(1) demographic data including: race, gender,
geographic location, R3 residency, Environmental Justice
Community residency, foster care system participation, and
justice-involvement for the owners of contractors
applying, accepted into, and graduating from the Program;
(2) the number of projects completed by participant
contractors, alone or in partnership, by race, gender,
geographic location, R3 residency, Environmental Justice
Community residency, foster care system participation, and
justice-involvement for the owners of contractors;
(3) the number of partnerships with participant
contractors that are expected to result in contracts for
work by the participant contractor, by race, gender,
geographic location, R3 residency, Environmental Justice
Community residency, foster care system participation, and
justice-involvement for the owners of contractors;
(4) changes in participant contractors' business
revenue, by race, gender, geographic location, R3
residency, Environmental Justice Community residency,
foster care system participation, and justice-involvement
for the owners of contractors;

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(5) the number of new hires by participant
contractors, by race, gender, geographic location, R3
residency, Environmental Justice Community residency,
foster care system participation, and justice-involvement;
(6) demographic data, including race, gender,
geographic location, R3 residency, Environmental Justice
Community residency, foster care system participation, and
justice-involvement, and average wage data, for new hires
by participant contractors;
(7) certifications held by participant contractors,
and number of participants holding each certification,
including, but not limited to, registration under the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act program and other programs
intended to certify BIPOC entities;
(8) the number of Program sessions attended by
participant contractors, aggregated by race; and
(9) indicators relevant for assessing the general
financial health of participant contractors.
(h) Within 3 years after the effective date of this Act,
the Department shall select an independent evaluator to review
and prepare a report on the performance of the Program and
Regional Administrators. The report shall be posted publicly.
(Source: P.A. 102-662, eff. 9-15-21.)
(20 ILCS 730/5-55)

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(Section scheduled to be repealed on September 15, 2045)
Sec. 5-55. Clean Energy Primes Contractor Accelerator
Program.
(a) As used in this Section:
"Approved vendor" means the definition of that term used
and as may be updated by the Illinois Power Agency.
"Minority business" means a minority-owned business as
defined in Section 2 of the Business Enterprise for
Minorities, Women, Veterans, 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.
"Program" means the Clean Energy Primes Contractor
Accelerator Program.
"Returning resident" has the meaning given to that term in
Section 5-50 of this Act.
(b) Subject to appropriation, the Department shall
develop, and through a Primes Program Administrator and
Regional Primes Program Leads described in this Section,
administer the Clean Energy Primes Contractor Accelerator
Program. The Program shall be administered in 3 program
delivery areas: the Northern Illinois Program Delivery Area
covering Northern Illinois, the Central Illinois Program

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Delivery Area covering Central Illinois, and the Southern
Illinois Program Delivery Area covering Southern Illinois.
Prior to developing the Program, the Department shall solicit
public comments, with a 30-day comment period, to gather input
on Program implementation and associated community outreach
options.
(c) The Program shall be available to selected contractors
who best meet the following criteria:
(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) a substantial and demonstrated commitment of
investing in and partnering with individuals and
institutions in equity investment eligible communities.
(c-5) The Department shall develop scoring criteria to
select contractors for the Program, which shall consider:
(1) projected hiring and industry job creation,
including wage and benefit expectations;
(2) a clear vision of strategic business growth and
how increased capitalization would benefit the business;
(3) past project work quality and demonstration of
technical knowledge;
(4) capacity the applicant is anticipated to bring to
project development;
(5) willingness to assume risk;
(6) anticipated revenues from future projects;

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(7) history of commitment to advancing equity as
demonstrated by, among other things, employment of or
ownership by equity investment eligible persons and a
history of partnership with equity focused community
organizations or government programs; and
(8) business models that build wealth in the larger
underserved community.
Applicants for Program participation shall be allowed to
reapply for a future cohort if they are not selected, and the
Primes Program Administrator shall inform each applicant of
this option.
(d) The Department, in consultation with the Primes
Program Administrator and Regional Primes Program Leads, shall
select a new cohort of participant contractors from each
Program Delivery Area every 18 months. Each regional cohort
shall include between 3 and 5 participants. The Program shall
cap contractors in the energy efficiency sector at 50% of
available cohort spots and 50% of available grants and loans,
if possible.
(e) The Department shall hire a Primes Program
Administrator with experience in leading a large
contractor-based business in Illinois; coaching and mentoring;
the Illinois clean energy industry; and working with equity
investment eligible community members, organizations, and
businesses.
(f) The Department shall select 3 Regional Primes Program

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Leads who shall report directly to the Primes Program
Administrator. The Regional Primes Program Leads shall be
located within their Program Delivery Area and have experience
in leading a large contractor-based business in Illinois;
coaching and mentoring; the Illinois clean energy industry;
developing relationships with companies in the Program
Delivery Area; and working with equity investment eligible
community members, organizations, and businesses.
(g) The Department may determine how Program elements will
be delivered or may contract with organizations with
experience delivering the Program elements described in
subsection (h) of this Section.
(h) The Clean Energy Primes Contractor Accelerator Program
shall provide participants with:
(1) a 5-year, 6-month progressive course of one-on-one
coaching to assist each participant in developing an
achievable 5-year business plan, including review of
monthly metrics, and advice on achieving participant's
goals;
(2) operational support grants not to exceed
$1,000,000 annually to support the growth of participant
contractors with access to capital for upfront project
costs and pre-development funding, among others. The
amount of the grant shall be based on anticipated project
size and scope;
(3) business coaching based on the participant's

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needs;
(4) a mentorship of approximately 2 years provided by
a qualified company in the participant's field;
(5) access to Clean Energy Contractor Incubator
Program services;
(6) assistance with applying for Minority Business
Enterprise certification and other relevant certifications
and approved vendor status for programs offered by
utilities or other entities;
(7) assistance with preparing bids and Request for
Proposal applications;
(8) opportunities to be listed in any relevant
directories and databases organized by the Department of
Central Management Services;
(9) opportunities to connect with participants in
other Department programs;
(10) assistance connecting with and initiating
participation in the Illinois Power Agency's Adjustable
Block program, the Illinois Solar for All Program, and
utility programs; and
(11) financial development assistance programs such as
zero-interest and low-interest loans with the Climate Bank
as established by Article 850 of the Illinois Finance
Authority Act or a comparable financing mechanism. The
Illinois Finance Authority shall retain authority to
determine loan repayment terms and conditions.

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(i) The Primes Program Administrator shall:
(1) collect and report performance metrics as
described in this Section;
(2) review and assess:
(i) participant work plans and annual goals; and
(ii) the mentorship program, including approved
mentor companies and their stipend awards; and
(3) work with the Regional Primes Program Leads to
publicize the Program; design and implement a mentorship
program; and ensure participants are quickly on-boarded.
(j) The Regional Primes Program Leads shall:
(1) publicize the Program; the budget shall include
funds to pay community-based organizations with a track
record of working with equity investment eligible
communities to complete this work;
(2) recruit qualified Program applicants;
(3) assist Program applicants with the application
process;
(4) introduce participants to the Program offerings;
(5) conduct entry and annual assessments with
participants to identify training, coaching, and other
Program service needs;
(6) assist participants in developing goals on entry
and annually, and assessing progress toward meeting the
goals;
(7) establish a metric reporting system with each

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participant and track the metrics for progress against the
contractor's work plan and Program goals;
(8) assist participants in receiving their Minority
Business Enterprise certification and any other relevant
certifications and approved vendor statuses;
(9) match participants with Clean Energy Contractor
Incubator Program offerings and individualized expert
coaching, including training on working with returning
residents and companies that employ them;
(10) pair participants with a mentor company;
(11) facilitate connections between participants and
potential subcontractors and employees;
(12) dispense a participant's awarded operational
grant funding;
(13) connect participants to zero-interest and
low-interest loans from the Climate Bank as established by
Article 850 of the Illinois Finance Authority Act or a
comparable financing mechanism;
(14) encourage participants to apply for appropriate
State and private business opportunities;
(15) review a participant's progress and make a
recommendation to the Department about whether the
participant should continue in the Program, be considered
a Program graduate, and whether adjustments should be made
to a participant's grant funding, loans, and related
services;

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(16) solicit information from participants, which
participants shall be required to provide, necessary to
understand the participant's business, including financial
and income information, certifications that the
participant is seeking to obtain, and ownership, employee,
and subcontractor data, including compensation, length of
service, and demographics; and
(17) other duties as required.
(k) Performance metrics. The Primes Program Administrator
and Regional Primes Program Leads shall collaborate to collect
and report the following metrics quarterly to the Department
and Advisory Council:
(1) demographic information on cohort recruiting and
formation, including racial, gender, geographic
distribution data, and data on the number and percentage
of R3 residents, environmental justice community
residents, foster care alumni, and formerly convicted
persons who are cohort applicants and admitted
participants;
(2) participant contractor engagement in other
Illinois clean energy programs such as the Adjustable
Block program, Illinois Solar for All Program, and the
utility-run energy efficiency and electric vehicle
programs;
(3) retention of participants in each cohort;
(4) total projects bid, started, and completed by

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participants, including information about revenue, hiring,
and subcontractor relationships with projects;
(5) certifications issued;
(6) employment data for contractor hires and industry
jobs created, including demographic, salary, length of
service, and geographic data;
(7) grants and loans distributed; and
(8) participant satisfaction with the Program.
The metrics in paragraphs (2), (4), and (6) shall be
collected from Program participants and graduates for 10 years
from their entrance into the Program to help the Department
and Program Administrators understand the Program's long-term
effect.
Data should be anonymized where needed to protect
participant privacy.
The Department shall make such reports publicly available
on its website.
(l) Mentorship Program.
(1) The Regional Primes Program Leads shall recruit,
and the Primes Program Administrator shall select, with
approval from the Department, private companies with the
following qualifications to mentor participants and assist
them in succeeding in the clean energy industry:
(i) excellent standing with state clean energy
programs;
(ii) 4 or more years of experience in their field;

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and
(iii) a proven track record of success in their
field.
(2) Mentor companies may receive a stipend, determined
by the Department, for their participation. Mentor
companies may identify what level of stipend they require.
(3) The Primes Program Administrator shall develop
guidelines for mentor company-mentee profit sharing or
purchased services agreements.
(4) The Regional Primes Program Leads shall:
(i) collaborate with mentor companies and
participants to create a plan for ongoing contact such
as on-the-job training, site walkthroughs, business
process and structure walkthroughs, quality assurance
and quality control reviews, and other relevant
activities;
(ii) recommend the mentor company-mentee pairings
and associated mentor company stipends for approval;
(iii) conduct an annual review of each mentor
company-mentee pairing and recommend whether the
pairing continues for a second year and the level of
stipend that is appropriate. The review shall also
ensure that any profit sharing and purchased services
agreements adhere to the guidelines established by the
Primes Program Administrator.
(5) Contractors may request reassignment to a new

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mentor company.
(m) Disparity study. The Program Administrator shall
cooperate with the Illinois Power Agency in the conduct of a
disparity study, as described in subsection (c-15) of Section
1-75 of the Illinois Power Agency Act, and in the effectuation
of appropriate remedies necessary to address any
discrimination that such study may find. Potential remedies
shall include, but not be limited to, race-conscious remedies
to rapidly eliminate discrimination faced by minority
businesses and works in the industry this Program serves,
consistent with the law. Remedies shall be developed through
consultation with individuals, companies, and organizations
that have expertise on discrimination faced in the market and
potential legally permissible remedies for addressing it.
Notwithstanding any other requirement of this Section, the
Program Administrator shall modify program participation
criteria or goals as soon as the report has been published, in
such a way as is consistent with state and federal law, to
rapidly eliminate discrimination on minority businesses and
workers in the industry this Program serves by setting
standards for Program participation. This study will be paid
for with funds from the Energy Transition Assistance Fund or
any other lawful source.
(n) Program budget.
(1) The Department may allocate up to $3,000,000
annually to the Primes Program Administrator for each of

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the 3 regional budgets from the Energy Transition
Assistance Fund.
(2) The Primes Program Administrator shall work with
the Illinois Finance Authority and the Climate Bank as
established by Article 850 of the Illinois Finance
Authority Act or comparable financing institution so that
loan loss reserves may be sufficient to underwrite
$7,000,000 in low-interest loans in each of the 3 Program
delivery areas.
(3) Any grant and loan funding shall be made available
to participants in a timely fashion.
(Source: P.A. 102-662, eff. 9-15-21.)
Section 35. The Illinois Lottery Law is amended by
changing Section 9.1 as follows:
(20 ILCS 1605/9.1)
Sec. 9.1. Private manager and management agreement.
(a) As used in this Section:
"Offeror" means a person or group of persons that responds
to a request for qualifications under this Section.
"Request for qualifications" means all materials and
documents prepared by the Department to solicit the following
from offerors:
(1) Statements of qualifications.
(2) Proposals to enter into a management agreement,

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including the identity of any prospective vendor or
vendors that the offeror intends to initially engage to
assist the offeror in performing its obligations under the
management agreement.
"Final offer" means the last proposal submitted by an
offeror in response to the request for qualifications,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offeror" means the offeror ultimately selected by
the Governor to be the private manager for the Lottery under
subsection (h) of this Section.
(b) By September 15, 2010, the Governor shall select a
private manager for the total management of the Lottery with
integrated functions, such as lottery game design, supply of
goods and services, and advertising and as specified in this
Section.
(c) Pursuant to the terms of this subsection, the
Department shall endeavor to expeditiously terminate the
existing contracts in support of the Lottery in effect on July
13, 2009 (the effective date of Public Act 96-37) in
connection with the selection of the private manager. As part
of its obligation to terminate these contracts and select the
private manager, the Department shall establish a mutually
agreeable timetable to transfer the functions of existing

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contractors to the private manager so that existing Lottery
operations are not materially diminished or impaired during
the transition. To that end, the Department shall do the
following:
(1) where such contracts contain a provision
authorizing termination upon notice, the Department shall
provide notice of termination to occur upon the mutually
agreed timetable for transfer of functions;
(2) upon the expiration of any initial term or renewal
term of the current Lottery contracts, the Department
shall not renew such contract for a term extending beyond
the mutually agreed timetable for transfer of functions;
or
(3) in the event any current contract provides for
termination of that contract upon the implementation of a
contract with the private manager, the Department shall
perform all necessary actions to terminate the contract on
the date that coincides with the mutually agreed timetable
for transfer of functions.
If the contracts to support the current operation of the
Lottery in effect on July 13, 2009 (the effective date of
Public Act 96-34) are not subject to termination as provided
for in this subsection (c), then the Department may include a
provision in the contract with the private manager specifying
a mutually agreeable methodology for incorporation.
(c-5) The Department shall include provisions in the

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management agreement whereby the private manager shall, for a
fee, and pursuant to a contract negotiated with the Department
(the "Employee Use Contract"), utilize the services of current
Department employees to assist in the administration and
operation of the Lottery. The Department shall be the employer
of all such bargaining unit employees assigned to perform such
work for the private manager, and such employees shall be
State employees, as defined by the Personnel Code. Department
employees shall operate under the same employment policies,
rules, regulations, and procedures, as other employees of the
Department. In addition, neither historical representation
rights under the Illinois Public Labor Relations Act, nor
existing collective bargaining agreements, shall be disturbed
by the management agreement with the private manager for the
management of the Lottery.
(d) The management agreement with the private manager
shall include all of the following:
(1) A term not to exceed 10 years, including any
renewals.
(2) A provision specifying that the Department:
(A) shall exercise actual control over all
significant business decisions;
(A-5) has the authority to direct or countermand
operating decisions by the private manager at any
time;
(B) has ready access at any time to information

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regarding Lottery operations;
(C) has the right to demand and receive
information from the private manager concerning any
aspect of the Lottery operations at any time; and
(D) retains ownership of all trade names,
trademarks, and intellectual property associated with
the Lottery.
(3) A provision imposing an affirmative duty on the
private manager to provide the Department with material
information and with any information the private manager
reasonably believes the Department would want to know to
enable the Department to conduct the Lottery.
(4) A provision requiring the private manager to
provide the Department with advance notice of any
operating decision that bears significantly on the public
interest, including, but not limited to, decisions on the
kinds of games to be offered to the public and decisions
affecting the relative risk and reward of the games being
offered, so the Department has a reasonable opportunity to
evaluate and countermand that decision.
(5) A provision providing for compensation of the
private manager that may consist of, among other things, a
fee for services and a performance based bonus as
consideration for managing the Lottery, including terms
that may provide the private manager with an increase in
compensation if Lottery revenues grow by a specified

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percentage in a given year.
(6) (Blank).
(7) A provision requiring the deposit of all Lottery
proceeds to be deposited into the State Lottery Fund
except as otherwise provided in Section 20 of this Act.
(8) A provision requiring the private manager to
locate its principal office within the State.
(8-5) A provision encouraging that at least 20% of the
cost of contracts entered into for goods and services by
the private manager in connection with its management of
the Lottery, other than contracts with sales agents or
technical advisors, be awarded to businesses that are a
minority-owned business, a women-owned business, a
veteran-owned business, or a business owned by a person
with disability, as those terms are defined in the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.
(9) A requirement that so long as the private manager
complies with all the conditions of the agreement under
the oversight of the Department, the private manager shall
have the following duties and obligations with respect to
the management of the Lottery:
(A) The right to use equipment and other assets
used in the operation of the Lottery.
(B) The rights and obligations under contracts
with retailers and vendors.

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(C) The implementation of a comprehensive security
program by the private manager.
(D) The implementation of a comprehensive system
of internal audits.
(E) The implementation of a program by the private
manager to curb compulsive gambling by persons playing
the Lottery.
(F) A system for determining (i) the type of
Lottery games, (ii) the method of selecting winning
tickets, (iii) the manner of payment of prizes to
holders of winning tickets, (iv) the frequency of
drawings of winning tickets, (v) the method to be used
in selling tickets, (vi) a system for verifying the
validity of tickets claimed to be winning tickets,
(vii) the basis upon which retailer commissions are
established by the manager, and (viii) minimum
payouts.
(10) A requirement that advertising and promotion must
be consistent with Section 7.8a of this Act.
(11) A requirement that the private manager market the
Lottery to those residents who are new, infrequent, or
lapsed players of the Lottery, especially those who are
most likely to make regular purchases on the Internet as
permitted by law.
(12) A code of ethics for the private manager's
officers and employees.

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(13) A requirement that the Department monitor and
oversee the private manager's practices and take action
that the Department considers appropriate to ensure that
the private manager is in compliance with the terms of the
management agreement, while allowing the manager, unless
specifically prohibited by law or the management
agreement, to negotiate and sign its own contracts with
vendors.
(14) A provision requiring the private manager to
periodically file, at least on an annual basis,
appropriate financial statements in a form and manner
acceptable to the Department.
(15) Cash reserves requirements.
(16) Procedural requirements for obtaining the prior
approval of the Department when a management agreement or
an interest in a management agreement is sold, assigned,
transferred, or pledged as collateral to secure financing.
(17) Grounds for the termination of the management
agreement by the Department or the private manager.
(18) Procedures for amendment of the agreement.
(19) A provision requiring the private manager to
engage in an open and competitive bidding process for any
procurement having a cost in excess of $50,000 that is not
a part of the private manager's final offer. The process
shall favor the selection of a vendor deemed to have
submitted a proposal that provides the Lottery with the

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best overall value. The process shall not be subject to
the provisions of the Illinois Procurement Code, unless
specifically required by the management agreement.
(20) The transition of rights and obligations,
including any associated equipment or other assets used in
the operation of the Lottery, from the manager to any
successor manager of the lottery, including the
Department, following the termination of or foreclosure
upon the management agreement.
(21) Right of use of copyrights, trademarks, and
service marks held by the Department in the name of the
State. The agreement must provide that any use of them by
the manager shall only be for the purpose of fulfilling
its obligations under the management agreement during the
term of the agreement.
(22) The disclosure of any information requested by
the Department to enable it to comply with the reporting
requirements and information requests provided for under
subsection (p) of this Section.
(e) Notwithstanding any other law to the contrary, the
Department shall select a private manager through a
competitive request for qualifications process consistent with
Section 20-35 of the Illinois Procurement Code, which shall
take into account:
(1) the offeror's ability to market the Lottery to
those residents who are new, infrequent, or lapsed players

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of the Lottery, especially those who are most likely to
make regular purchases on the Internet;
(2) the offeror's ability to address the State's
concern with the social effects of gambling on those who
can least afford to do so;
(3) the offeror's ability to provide the most
successful management of the Lottery for the benefit of
the people of the State based on current and past business
practices or plans of the offeror; and
(4) the offeror's poor or inadequate past performance
in servicing, equipping, operating or managing a lottery
on behalf of Illinois, another State or foreign government
and attracting persons who are not currently regular
players of a lottery.
(f) The Department may retain the services of an advisor
or advisors with significant experience in financial services
or the management, operation, and procurement of goods,
services, and equipment for a government-run lottery to assist
in the preparation of the terms of the request for
qualifications and selection of the private manager. Any
prospective advisor seeking to provide services under this
subsection (f) shall disclose any material business or
financial relationship during the past 3 years with any
potential offeror, or with a contractor or subcontractor
presently providing goods, services, or equipment to the
Department to support the Lottery. The Department shall

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evaluate the material business or financial relationship of
each prospective advisor. The Department shall not select any
prospective advisor with a substantial business or financial
relationship that the Department deems to impair the
objectivity of the services to be provided by the prospective
advisor. During the course of the advisor's engagement by the
Department, and for a period of one year thereafter, the
advisor shall not enter into any business or financial
relationship with any offeror or any vendor identified to
assist an offeror in performing its obligations under the
management agreement. Any advisor retained by the Department
shall be disqualified from being an offeror. The Department
shall not include terms in the request for qualifications that
provide a material advantage whether directly or indirectly to
any potential offeror, or any contractor or subcontractor
presently providing goods, services, or equipment to the
Department to support the Lottery, including terms contained
in previous responses to requests for proposals or
qualifications submitted to Illinois, another State or foreign
government when those terms are uniquely associated with a
particular potential offeror, contractor, or subcontractor.
The request for proposals offered by the Department on
December 22, 2008 as "LOT08GAMESYS" and reference number
"22016176" is declared void.
(g) The Department shall select at least 2 offerors as
finalists to potentially serve as the private manager no later

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than August 9, 2010. Upon making preliminary selections, the
Department shall schedule a public hearing on the finalists'
proposals and provide public notice of the hearing at least 7
calendar days before the hearing. The notice must include all
of the following:
(1) The date, time, and place of the hearing.
(2) The subject matter of the hearing.
(3) A brief description of the management agreement to
be awarded.
(4) The identity of the offerors that have been
selected as finalists to serve as the private manager.
(5) The address and telephone number of the
Department.
(h) At the public hearing, the Department shall (i)
provide sufficient time for each finalist to present and
explain its proposal to the Department and the Governor or the
Governor's designee, including an opportunity to respond to
questions posed by the Department, Governor, or designee and
(ii) allow the public and non-selected offerors to comment on
the presentations. The Governor or a designee shall attend the
public hearing. After the public hearing, the Department shall
have 14 calendar days to recommend to the Governor whether a
management agreement should be entered into with a particular
finalist. After reviewing the Department's recommendation, the
Governor may accept or reject the Department's recommendation,
and shall select a final offeror as the private manager by

SB0238 - 87 - LRB103 24882 DTM 51215 b
publication of a notice in the Illinois Procurement Bulletin
on or before September 15, 2010. The Governor shall include in
the notice a detailed explanation and the reasons why the
final offeror is superior to other offerors and will provide
management services in a manner that best achieves the
objectives of this Section. The Governor shall also sign the
management agreement with the private manager.
(i) Any action to contest the private manager selected by
the Governor under this Section must be brought within 7
calendar days after the publication of the notice of the
designation of the private manager as provided in subsection
(h) of this Section.
(j) The Lottery shall remain, for so long as a private
manager manages the Lottery in accordance with provisions of
this Act, a Lottery conducted by the State, and the State shall
not be authorized to sell or transfer the Lottery to a third
party.
(k) Any tangible personal property used exclusively in
connection with the lottery that is owned by the Department
and leased to the private manager shall be owned by the
Department in the name of the State and shall be considered to
be public property devoted to an essential public and
governmental function.
(l) The Department may exercise any of its powers under
this Section or any other law as necessary or desirable for the
execution of the Department's powers under this Section.

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(m) Neither this Section nor any management agreement
entered into under this Section prohibits the General Assembly
from authorizing forms of gambling that are not in direct
competition with the Lottery. The forms of gambling authorized
by Public Act 101-31 constitute authorized forms of gambling
that are not in direct competition with the Lottery.
(n) The private manager shall be subject to a complete
investigation in the third, seventh, and tenth years of the
agreement (if the agreement is for a 10-year term) by the
Department in cooperation with the Auditor General to
determine whether the private manager has complied with this
Section and the management agreement. The private manager
shall bear the cost of an investigation or reinvestigation of
the private manager under this subsection.
(o) The powers conferred by this Section are in addition
and supplemental to the powers conferred by any other law. If
any other law or rule is inconsistent with this Section,
including, but not limited to, provisions of the Illinois
Procurement Code, then this Section controls as to any
management agreement entered into under this Section. This
Section and any rules adopted under this Section contain full
and complete authority for a management agreement between the
Department and a private manager. No law, procedure,
proceeding, publication, notice, consent, approval, order, or
act by the Department or any other officer, Department,
agency, or instrumentality of the State or any political

SB0238 - 89 - LRB103 24882 DTM 51215 b
subdivision is required for the Department to enter into a
management agreement under this Section. This Section contains
full and complete authority for the Department to approve any
contracts entered into by a private manager with a vendor
providing goods, services, or both goods and services to the
private manager under the terms of the management agreement,
including subcontractors of such vendors.
Upon receipt of a written request from the Chief
Procurement Officer, the Department shall provide to the Chief
Procurement Officer a complete and un-redacted copy of the
management agreement or any contract that is subject to the
Department's approval authority under this subsection (o). The
Department shall provide a copy of the agreement or contract
to the Chief Procurement Officer in the time specified by the
Chief Procurement Officer in his or her written request, but
no later than 5 business days after the request is received by
the Department. The Chief Procurement Officer must retain any
portions of the management agreement or of any contract
designated by the Department as confidential, proprietary, or
trade secret information in complete confidence pursuant to
subsection (g) of Section 7 of the Freedom of Information Act.
The Department shall also provide the Chief Procurement
Officer with reasonable advance written notice of any contract
that is pending Department approval.
Notwithstanding any other provision of this Section to the
contrary, the Chief Procurement Officer shall adopt

SB0238 - 90 - LRB103 24882 DTM 51215 b
administrative rules, including emergency rules, to establish
a procurement process to select a successor private manager if
a private management agreement has been terminated. The
selection process shall at a minimum take into account the
criteria set forth in items (1) through (4) of subsection (e)
of this Section and may include provisions consistent with
subsections (f), (g), (h), and (i) of this Section. The Chief
Procurement Officer shall also implement and administer the
adopted selection process upon the termination of a private
management agreement. The Department, after the Chief
Procurement Officer certifies that the procurement process has
been followed in accordance with the rules adopted under this
subsection (o), shall select a final offeror as the private
manager and sign the management agreement with the private
manager.
Through June 30, 2022, except as provided in Sections
21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13
of this Act and Section 25-70 of the Sports Wagering Act, the
Department shall distribute all proceeds of lottery tickets
and shares sold in the following priority and manner:
(1) The payment of prizes and retailer bonuses.
(2) The payment of costs incurred in the operation and
administration of the Lottery, including the payment of
sums due to the private manager under the management
agreement with the Department.
(3) On the last day of each month or as soon thereafter

SB0238 - 91 - LRB103 24882 DTM 51215 b
as possible, the State Comptroller shall direct and the
State Treasurer shall transfer from the State Lottery Fund
to the Common School Fund an amount that is equal to the
proceeds transferred in the corresponding month of fiscal
year 2009, as adjusted for inflation, to the Common School
Fund.
(4) On or before September 30 of each fiscal year,
deposit any estimated remaining proceeds from the prior
fiscal year, subject to payments under items (1), (2), and
(3), into the Capital Projects Fund. Beginning in fiscal
year 2019, the amount deposited shall be increased or
decreased each year by the amount the estimated payment
differs from the amount determined from each year-end
financial audit. Only remaining net deficits from prior
fiscal years may reduce the requirement to deposit these
funds, as determined by the annual financial audit.
Beginning July 1, 2022, the Department shall distribute
all proceeds of lottery tickets and shares sold in the manner
and priority described in Section 9.3 of this Act, except that
the Department shall make the deposit into the Capital
Projects Fund that would have occurred under item (4) of this
subsection (o) on or before September 30, 2022, but for the
changes made to this subsection by Public Act 102-699.
(p) The Department shall be subject to the following
reporting and information request requirements:
(1) the Department shall submit written quarterly

SB0238 - 92 - LRB103 24882 DTM 51215 b
reports to the Governor and the General Assembly on the
activities and actions of the private manager selected
under this Section;
(2) upon request of the Chief Procurement Officer, the
Department shall promptly produce information related to
the procurement activities of the Department and the
private manager requested by the Chief Procurement
Officer; the Chief Procurement Officer must retain
confidential, proprietary, or trade secret information
designated by the Department in complete confidence
pursuant to subsection (g) of Section 7 of the Freedom of
Information Act; and
(3) at least 30 days prior to the beginning of the
Department's fiscal year, the Department shall prepare an
annual written report on the activities of the private
manager selected under this Section and deliver that
report to the Governor and General Assembly.
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
101-561, eff. 8-23-19; 102-558, eff. 8-20-21; 102-699, eff.
4-19-22; 102-1115, eff. 1-9-23.)
Section 40. The Department of Transportation Law of the
Civil Administrative Code of Illinois is amended by changing
Section 2705-585 as follows:
(20 ILCS 2705/2705-585)

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Sec. 2705-585. Diversity goals.
(a) To the extent permitted by any applicable federal law
or regulation, all State construction projects funded from
amounts (i) made available under the Governor's Fiscal Year
2009 supplemental budget or the American Recovery and
Reinvestment Act of 2009 and (ii) that are appropriated to the
Illinois Department of Transportation shall comply with the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.
(b) The Illinois Department of Transportation shall
appoint representatives to professional and artistic services
selection committees representative of the State's ethnic,
cultural, and geographic diversity, including, but not limited
to, at least one person from each of the following: an
association representing the interests of African American
business owners, an association representing the interests of
Latino business owners, and an association representing the
interests of women business owners. These committees shall
comply with all requirements of the Open Meetings Act.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 45. The Capital Development Board Act is amended
by changing Section 16 as follows:
(20 ILCS 3105/16) (from Ch. 127, par. 783b)
Sec. 16. (a) In addition to any other power granted in this

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Act to adopt rules or regulations, the Board may adopt
regulations or rules relating to the issuance or renewal of
the prequalification of an architect, engineer or contractor
or the suspension or modification of the prequalification of
any such person or entity including, without limitation, an
interim or emergency suspension or modification without a
hearing founded on any one or more of the bases set forth in
this Section.
(b) Among the bases for an interim or emergency suspension
or modification of prequalification are:
(1) A finding by the Board that the public interest,
safety or welfare requires a summary suspension or
modification of a prequalification without hearings.
(2) The occurrence of an event or series of events
which, in the Board's opinion, warrants a summary
suspension or modification of a prequalification without a
hearing including, without limitation, (i) the indictment
of the holder of the prequalification by a State or
federal agency or other branch of government for a crime;
(ii) the suspension or modification of a license or
prequalification by another State agency or federal agency
or other branch of government after hearings; (iii) a
material breach of a contract made between the Board and
an architect, engineer or contractor; and (iv) the failure
to comply with State law including, without limitation,
the Business Enterprise for Minorities, Women, Veterans,

SB0238 - 95 - LRB103 24882 DTM 51215 b
and Persons with Disabilities Act, the prevailing wage
requirements, and the Steel Products Procurement Act.
(c) If a prequalification is suspended or modified by the
Board without hearings for any reason set forth in this
Section or in Section 10-65 of the Illinois Administrative
Procedure Act, as amended, the Board shall within 30 days of
the issuance of an order of suspension or modification of a
prequalification initiate proceedings for the suspension or
modification of or other action upon the prequalification.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 50. The Illinois Finance Authority Act is amended
by changing Sections 835-10 and 850-15 as follows:
(20 ILCS 3501/835-10)
Sec. 835-10. Definitions. As used or referred to in this
Article 835, the following words and terms shall have the
following meanings, except where the context clearly requires
otherwise:
"Fund" means one or more of the Industrial Project
Insurance Fund, the Illinois Agricultural Loan Guarantee Fund,
or the Illinois Farmer and Agribusiness Loan Guarantee Fund,
as applicable.
"Illinois Agricultural Loan Guarantee Fund" means the
Illinois Agricultural Loan Guarantee Fund created under
Section 830-30(c) of this Act.

SB0238 - 96 - LRB103 24882 DTM 51215 b
"Illinois Farmer and Agribusiness Loan Guarantee Fund"
means the Illinois Farmer and Agribusiness Loan Guarantee Fund
created under Section 830-35(c) of this Act.
"Industrial Project Insurance Fund" means the Industrial
Project Insurance Fund created under Section 805-15 of this
Act.
"Qualified veteran-owned small business" means a small
business (i) that is at least 51% owned by one or more
qualified veterans living in Illinois or, in the case of a
corporation, at least 51% of the stock of which is owned by one
or more qualified veterans living in Illinois; (ii) that has
its home office in Illinois; and (iii) for which items (i) and
(ii) are factually verified annually by the Department of
Central Management Services has the meaning provided in
subsection (e) of Section 45-57 of the Illinois Procurement
Code.
(Source: P.A. 99-509, eff. 6-24-16.)
(20 ILCS 3501/850-15)
Sec. 850-15. Purposes; Climate Bank. In its role as the
Climate Bank for the State, the Authority shall consider the
following purposes:
(1) the distribution of the benefits of clean energy
in an equitable manner, including by evaluating benefits
to eligible communities and equity investment eligible
persons;

SB0238 - 97 - LRB103 24882 DTM 51215 b
(2) making clean energy accessible to all, especially
eligible persons, through financing opportunities and
grants for minority-owned businesses, as defined in the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act, and for low-income
communities, eligible communities, environmental justice
communities, and the businesses that serve these
communities; and
(3) accelerating the investment of private capital
into clean energy projects in a manner reflective of the
geographic, racial, ethnic, gender, and income-level
diversity of the State.
(Source: P.A. 102-662, eff. 9-15-21.)
Section 51. The Illinois Power Agency Act is amended by
changing Sections 1-10 and 1-75 as follows:
(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

SB0238 - 98 - LRB103 24882 DTM 51215 b
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 either:
(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
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; or
(2) located at the site of a coal mine that has
permanently ceased coal production, permanently halted any

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re-mining operations, and is no longer accepting any coal
combustion residues; has both completed all clean-up and
remediation obligations under the federal Surface Mining
and Reclamation Act of 1977 and all applicable Illinois
rules and any other clean-up, remediation, or ongoing
monitoring to safeguard the health and well-being of the
people of the State of Illinois, as well as demonstrated
compliance with all applicable federal and State
environmental rules and regulations, including, but not
limited, to 35 Ill. Adm. Code Part 845 and any rules for
historic fill of coal combustion residuals, including any
rules finalized in Subdocket A of Illinois Pollution
Control Board docket R2020-019.
"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
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

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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 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
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

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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 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.
"Clean energy" means energy generation that is 90% or
greater free of carbon dioxide emissions.
"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
untreated and unadulterated organic waste biomass, and
hydropower that does not involve new construction or
significant expansion of hydropower dams;
(2) is interconnected at the distribution system level

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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 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;
(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

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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.
"Distributed renewable energy generation device" means a
device that is:
(1) 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,
waste heat to power systems, or qualified combined heat
and power systems;
(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) (blank).
"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
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.

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"Equity investment eligible community" or "eligible
community" are synonymous and mean the geographic areas
throughout Illinois which would most benefit from equitable
investments by the State designed to combat discrimination.
Specifically, the eligible communities shall be defined as the
following areas:
(1) R3 Areas as established pursuant to Section 10-40
of the Cannabis Regulation and Tax Act, where residents
have historically been excluded from economic
opportunities, including opportunities in the energy
sector; and
(2) environmental Environmental justice communities,
as defined by the Illinois Power Agency pursuant to the
Illinois Power Agency Act, where residents have
historically been subject to disproportionate burdens of
pollution, including pollution from the energy sector.
"Equity eligible persons" or "eligible persons" means
persons who would most benefit from equitable investments by
the State designed to combat discrimination, specifically:
(1) persons who graduate from or are current or former
participants in the Clean Jobs Workforce Network Program,
the Clean Energy Contractor Incubator Program, the
Illinois Climate Works Preapprenticeship Program,
Returning Residents Clean Jobs Training Program, or the
Clean Energy Primes Contractor Accelerator Program, and
the solar training pipeline and multi-cultural jobs

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program created in paragraphs (a)(1) and (a)(3) of Section
16-208.12 16-108.21 of the Public Utilities Act;
(2) persons who are graduates of or currently enrolled
in the foster care system;
(3) persons who were formerly incarcerated;
(4) persons whose primary residence is in an equity
investment eligible community.
"Equity eligible contractor" means a business that is
majority-owned by eligible persons, or a nonprofit or
cooperative that is majority-governed by eligible persons, or
is a natural person that is an eligible person offering
personal services as an independent contractor.
"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.
"General contractor Contractor" means the entity or
organization with main responsibility for the building of a
construction project and who is the party signing the prime
construction contract for the project.
"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.
"High voltage direct current converter station" means the
collection of equipment that converts direct current energy

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from a high voltage direct current transmission line into
alternating current using Voltage Source Conversion technology
and that is interconnected with transmission or distribution
assets located in Illinois.
"High voltage direct current renewable energy credit"
means a renewable energy credit associated with a renewable
energy resource where the renewable energy resource has
entered into a contract to transmit the energy associated with
such renewable energy credit over high voltage direct current
transmission facilities.
"High voltage direct current transmission facilities"
means the collection of installed equipment that converts
alternating current energy in one location to direct current
and transmits that direct current energy to a high voltage
direct current converter station using Voltage Source
Conversion technology. "High voltage direct current
transmission facilities" includes the high voltage direct
current converter station itself and associated high voltage
direct current transmission lines. Notwithstanding the
preceding, after September 15, 2021 (the effective date of
Public Act 102-662) this amendatory Act of the 102nd General
Assembly, an otherwise qualifying collection of equipment does
not qualify as high voltage direct current transmission
facilities unless its developer entered into a project labor
agreement, is capable of transmitting electricity at 525kv
with an Illinois converter station located and interconnected

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in the region of the PJM Interconnection, LLC, and the system
does not operate as a public utility, as that term is defined
in Section 3-105 of the Public Utilities Act.
"Index price" means the real-time energy settlement price
at the applicable Illinois trading hub, such as PJM-NIHUB or
MISO-IL, for a given settlement period.
"Indexed renewable energy credit" means a tradable credit
that represents the environmental attributes of one megawatt
hour of energy produced from a renewable energy resource, the
price of which shall be calculated by subtracting the strike
price offered by a new utility-scale wind project or a new
utility-scale photovoltaic project from the index price in a
given settlement period.
"Indexed renewable energy credit counterparty" has the
same meaning as "public utility" as defined in Section 3-105
of the Public Utilities Act.
"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.

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"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.
"Project" means the planning, bidding, and construction of
a facility.
"Project labor agreement" means a pre-hire collective
bargaining agreement that covers all terms and conditions of
employment on a specific construction project and must include
the following:
(1) provisions establishing the minimum hourly wage
for each class of labor organization employee;
(2) provisions establishing the benefits and other
compensation for each class of labor organization
employee;
(3) provisions establishing that no strike or disputes
will be engaged in by the labor organization employees;
(4) provisions establishing that no lockout or
disputes will be engaged in by the general contractor
building the project; and
(5) provisions for minorities and women, as defined
under the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act, setting forth
goals for apprenticeship hours to be performed by
minorities and women and setting forth goals for total

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hours to be performed by underrepresented minorities and
women.
A labor organization and the general contractor building
the project shall have the authority to include other terms
and conditions as they deem necessary.
"Public utility" has the same definition as found in
Section 3-105 of the Public Utilities Act.
"Qualified combined heat and power systems" means systems
that, either simultaneously or sequentially, produce
electricity and useful thermal energy from a single fuel
source. Such systems are eligible for "renewable energy
credits" in an amount equal to its total energy output where a
renewable fuel is consumed or in an amount equal to the net
reduction in nonrenewable fuel consumed on a total energy
output basis.
"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

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from wind, solar thermal energy, photovoltaic cells and
panels, biodiesel, anaerobic digestion, crops and untreated
and unadulterated organic waste biomass, and hydropower that
does not involve new construction or significant expansion of
hydropower dams, waste heat to power systems, or qualified
combined heat and power systems. 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, railroad
crossties, utility poles, or construction or demolition
debris, other than untreated and unadulterated waste wood.
"Renewable energy resources" also includes high voltage direct
current renewable energy credits and the associated energy
converted to alternating current by a high voltage direct
current converter station to the extent that: (1) the
generator of such renewable energy resource contracted with a
third party to transmit the energy over the high voltage
direct current transmission facilities, and (2) the
third-party contracting for delivery of renewable energy
resources over the high voltage direct current transmission
facilities have ownership rights over the unretired associated
high voltage direct current renewable energy credit.
"Retail customer" has the same definition as found in
Section 16-102 of the Public Utilities Act.

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"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.
"Settlement period" means the period of time utilized by
MISO and PJM and their successor organizations as the basis
for settlement calculations in the real-time energy market.
"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
electric supplier, which agreement shall have terms and

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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.
"Strike price" means a contract price for energy and
renewable energy credits from a new utility-scale wind project
or a new utility-scale photovoltaic project.
"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

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conventional natural gas.
"Total resource cost test" or "TRC test" means a standard
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

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the purpose of calculating net present values, a societal
discount rate based on actual, long-term Treasury bond yields
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
5,000 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
5,000 kilowatts.
"Waste Heat to Power Systems" means systems that capture
and generate electricity from energy that would otherwise be
lost to the atmosphere without the use of additional fuel.
"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

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Operator, Inc., or their successors.
(Source: P.A. 102-662, eff. 9-15-21; revised 6-2-22.)
(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. Beginning on the effective date of this amendatory
Act of the 102nd General Assembly, the Planning and
Procurement Bureau shall develop plans and processes for the
procurement of carbon mitigation credits from carbon-free
energy resources in accordance with the requirements of
subsection (d-10) of this Section. The Planning and
Procurement Bureau shall also develop procurement plans and
conduct competitive procurement processes in accordance with

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the requirements of Section 16-111.5 of the Public Utilities
Act for the eligible retail customers of small
multi-jurisdictional electric utilities that (i) on December
31, 2005 served less than 100,000 customers in Illinois and
(ii) request a procurement plan for their Illinois
jurisdictional load. This Section shall not apply to a small
multi-jurisdictional utility until such time as a small
multi-jurisdictional utility requests the Agency to prepare a
procurement plan for their Illinois jurisdictional load. For
the purposes of this Section, the term "eligible retail
customers" has the same definition as found in Section
16-111.5(a) of the Public Utilities Act.
Beginning with the plan or plans to be implemented in the
2017 delivery year, the Agency shall no longer include the
procurement of renewable energy resources in the annual
procurement plans required by this subsection (a), except as
provided in subsection (q) of Section 16-111.5 of the Public
Utilities Act, and shall instead develop a long-term renewable
resources procurement plan in accordance with subsection (c)
of this Section and Section 16-111.5 of the Public Utilities
Act.
In accordance with subsection (c-5) of this Section, the
Planning and Procurement Bureau shall oversee the procurement
by electric utilities that served more than 300,000 retail
customers in this State as of January 1, 2019 of renewable
energy credits from new utility-scale solar projects to be

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installed, along with energy storage facilities, at or
adjacent to the sites of electric generating facilities that,
as of January 1, 2016, burned coal as their primary fuel
source.
(1) The Agency shall each year, beginning in 2008, as
needed, issue a request for qualifications for experts or
expert consulting firms to develop the procurement plans
in accordance with Section 16-111.5 of the Public
Utilities Act. In order to qualify an expert or expert
consulting firm must have:
(A) direct previous experience assembling
large-scale power supply plans or portfolios for
end-use customers;
(B) an advanced degree in economics, mathematics,
engineering, risk management, or a related area of
study;
(C) 10 years of experience in the electricity
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

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

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other interested parties with the lists of qualified
experts or expert consulting firms identified through the
request for qualifications processes that are under
consideration to develop the procurement plans and to
serve as the procurement administrator. The Agency shall
also provide each qualified expert's or expert consulting
firm's response to the request for qualifications. All
information provided under this subparagraph shall also be
provided to the Commission. The Agency may provide by rule
for fees associated with supplying the information to
utilities and other interested parties. These parties
shall, within 5 business days, notify the Agency in
writing if they object to any experts or expert consulting
firms on the lists. Objections shall be based on:
(A) failure to satisfy qualification criteria;
(B) identification of a conflict of interest; or
(C) evidence of inappropriate bias for or against
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

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ruling on the petition within 10 days. There is no right of
appeal of the Commission's ruling.
(4) The Agency shall issue requests for proposals to
the qualified experts or expert consulting firms to
develop a procurement plan for the affected utilities and
to serve as procurement administrator.
(5) The Agency shall select an expert or expert
consulting firm to develop procurement plans based on the
proposals submitted and shall award contracts of up to 5
years to those selected.
(6) The Agency shall select an expert or expert
consulting firm, with approval of the Commission, to serve
as procurement administrator based on the proposals
submitted. If the Commission rejects, within 5 days, the
Agency's selection, the Agency shall submit another
recommendation within 3 days based on the proposals
submitted. The Agency shall award a 5-year contract to the
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

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eligible retail customers of electric utilities that on
December 31, 2005 provided electric service to at least
100,000 customers in the State of Illinois, and for eligible
Illinois retail customers of small multi-jurisdictional
electric utilities that (i) on December 31, 2005 served less
than 100,000 customers in Illinois and (ii) request a
procurement plan for their Illinois jurisdictional load.
(c) Renewable portfolio standard.
(1)(A) The Agency shall develop a long-term renewable
resources procurement plan that shall include procurement
programs and competitive procurement events necessary to
meet the goals set forth in this subsection (c). The
initial long-term renewable resources procurement plan
shall be released for comment no later than 160 days after
June 1, 2017 (the effective date of Public Act 99-906).
The Agency shall review, and may revise on an expedited
basis, the long-term renewable resources procurement plan
at least every 2 years, which shall be conducted in
conjunction with the procurement plan under Section
16-111.5 of the Public Utilities Act to the extent
practicable to minimize administrative expense. No later
than 120 days after the effective date of this amendatory
Act of the 102nd General Assembly, the Agency shall
release for comment a revision to the long-term renewable
resources procurement plan, updating elements of the most
recently approved plan as needed to comply with this

SB0238 - 123 - LRB103 24882 DTM 51215 b
amendatory Act of the 102nd General Assembly, and any
long-term renewable resources procurement plan update
published by the Agency but not yet approved by the
Illinois Commerce Commission shall be withdrawn. The
long-term renewable resources procurement plans shall be
subject to review and approval by the Commission under
Section 16-111.5 of the Public Utilities Act.
(B) Subject to subparagraph (F) of this paragraph (1),
the long-term renewable resources procurement plan shall
attempt to meet the goals for procurement of renewable
energy credits at levels of at least the following overall
percentages: 13% by the 2017 delivery year; increasing by
at least 1.5% each delivery year thereafter to at least
25% by the 2025 delivery year; increasing by at least 3%
each delivery year thereafter to at least 40% by the 2030
delivery year, and continuing at no less than 40% for each
delivery year thereafter. The Agency shall attempt to
procure 50% by delivery year 2040. The Agency shall
determine the annual increase between delivery year 2030
and delivery year 2040, if any, taking into account energy
demand, other energy resources, and other public policy
goals. In the event of a conflict between these goals and
the new wind 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

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

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eligible retail customers on February 28, 2017.
For the delivery year beginning June 1, 2019, and for
each year thereafter, the procurement plans shall attempt
to include, subject to the prioritization outlined in this
subparagraph (B), cost-effective renewable energy
resources equal to a minimum percentage of each utility's
load for all retail customers as follows: 16% by June 1,
2019; increasing by 1.5% each year thereafter to 25% by
June 1, 2025; and 25% by June 1, 2026; increasing by at
least 3% each delivery year thereafter to at least 40% by
the 2030 delivery year, and continuing at no less than 40%
for each delivery year thereafter. The Agency shall
attempt to procure 50% by delivery year 2040. The Agency
shall determine the annual increase between delivery year
2030 and delivery year 2040, if any, taking into account
energy demand, other energy resources, and other public
policy goals.
For each delivery year, the Agency shall first
recognize each utility's obligations for that delivery
year under existing contracts. Any renewable energy
credits under existing contracts, including renewable
energy credits as part of renewable energy resources,
shall be used to meet the goals set forth in this
subsection (c) for the delivery year.
(C) The long-term renewable resources procurement plan
described in subparagraph (A) of this paragraph (1) shall

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include the procurement of renewable energy credits from
new projects in amounts equal to at least the following:
(i) 10,000,000 renewable energy credits delivered
annually by the end of the 2021 delivery year, and
increasing ratably to reach 45,000,000 renewable
energy credits delivered annually from new wind and
solar projects by the end of delivery year 2030 such
that the goals in subparagraph (B) of this paragraph
(1) are met entirely by procurements of renewable
energy credits from new wind and photovoltaic
projects. Of that amount, to the extent possible, the
Agency shall procure 45% from wind projects and 55%
from photovoltaic projects. Of the amount to be
procured from photovoltaic projects, the Agency shall
procure: at least 50% from solar photovoltaic projects
using the program outlined in subparagraph (K) of this
paragraph (1) from distributed renewable energy
generation devices or community renewable generation
projects; at least 47% from utility-scale solar
projects; at least 3% from brownfield site
photovoltaic projects that are not community renewable
generation projects.
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

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from brownfield site photovoltaic projects and thereby
help return blighted or contaminated land to
productive use while enhancing public health and the
well-being of Illinois residents, including those in
environmental justice communities, as defined using
existing methodologies and findings used by the Agency
and its Administrator in its Illinois Solar for All
Program.
(ii) In any given delivery year, if forecasted
expenses are less than the maximum budget available
under subparagraph (E) of this paragraph (1), the
Agency shall continue to procure new renewable energy
credits until that budget is exhausted in the manner
outlined in item (i) of this subparagraph (C).
(iii) For purposes of this Section:
"New wind projects" means wind renewable energy
facilities that are energized after June 1, 2017 for
the delivery year commencing June 1, 2017.
"New photovoltaic projects" means photovoltaic
renewable energy facilities that are energized after
June 1, 2017. Photovoltaic projects developed under
Section 1-56 of this Act shall not apply towards the
new photovoltaic project requirements in this
subparagraph (C).
For purposes of calculating whether the Agency has
procured enough new wind and solar renewable energy

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credits required by this subparagraph (C), renewable
energy facilities that have a multi-year renewable
energy credit delivery contract with the utility
through at least delivery year 2030 shall be
considered new, however no renewable energy credits
from contracts entered into before June 1, 2021 shall
be used to calculate whether the Agency has procured
the correct proportion of new wind and new solar
contracts described in this subparagraph (C) for
delivery year 2021 and thereafter.
(D) Renewable energy credits shall be cost effective.
For purposes of this subsection (c), "cost effective"
means that the costs of procuring renewable energy
resources do not cause the limit stated in subparagraph
(E) of this paragraph (1) to be exceeded and, for
renewable energy credits procured through a competitive
procurement event, do not exceed benchmarks based on
market prices for like products in the region. For
purposes of this subsection (c), "like products" means
contracts for renewable energy credits from the same or
substantially similar technology, same or substantially
similar vintage (new or existing), the same or
substantially similar quantity, and the same or
substantially similar contract length and structure.
Benchmarks shall reflect development, financing, or
related costs resulting from requirements imposed through

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

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

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actual amount of kilowatthours of electricity delivered,
or applicable portion of such amount as specified in
paragraph (1) of this subsection (c), as applicable, by
the electric utility in the delivery year immediately
prior to the procurement to all retail customers in its
service territory. The calculations required by this
subparagraph (E) shall be made only once for each delivery
year at the time that the renewable energy resources are
procured. 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 as of June 1, 2021;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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
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

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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
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

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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
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

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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,
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

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suppliers under this subparagraph (H).
(I) The Agency shall design its long-term renewable
energy procurement plan to maximize the State's interest
in the health, safety, and welfare of its residents,
including but not limited to minimizing sulfur dioxide,
nitrogen oxide, particulate matter and other pollution
that adversely affects public health in this State,
increasing fuel and resource diversity in this State,
enhancing the reliability and resiliency of the
electricity distribution system in this State, meeting
goals to limit carbon dioxide emissions under federal or
State law, and contributing to a cleaner and healthier
environment for the citizens of this State. In order to
further these legislative purposes, renewable energy
credits shall be eligible to be counted toward the
renewable energy requirements of this subsection (c) if
they are generated from facilities located in this State.
The Agency may qualify renewable energy credits from
facilities located in states adjacent to Illinois or
renewable energy credits associated with the electricity
generated by a utility-scale wind energy facility or
utility-scale photovoltaic facility and transmitted by a
qualifying direct current project described in subsection
(b-5) of Section 8-406 of the Public Utilities Act to a
delivery point on the electric transmission grid located
in this State or a state adjacent to Illinois, if the

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generator demonstrates and the Agency determines that the
operation of such facility or facilities will help promote
the State's interest in the health, safety, and welfare of
its residents based on the public interest criteria
described above. For the purposes of this Section,
renewable resources that are delivered via a high voltage
direct current converter station located in Illinois shall
be deemed generated in Illinois at the time and location
the energy is converted to alternating current by the high
voltage direct current converter station if the high
voltage direct current transmission line: (i) after the
effective date of this amendatory Act of the 102nd General
Assembly, was constructed with a project labor agreement;
(ii) is capable of transmitting electricity at 525kv;
(iii) has an Illinois converter station located and
interconnected in the region of the PJM Interconnection,
LLC; (iv) does not operate as a public utility; and (v) if
the high voltage direct current transmission line was
energized after June 1, 2023. To ensure that the public
interest criteria are applied to the procurement and given
full effect, the Agency's long-term procurement plan shall
describe in detail how each public interest factor shall
be considered and weighted for facilities located in
states adjacent to Illinois.
(J) In order to promote the competitive development of
renewable energy resources in furtherance of the State's

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interest in the health, safety, and welfare of its
residents, renewable energy credits shall not be eligible
to be counted toward the renewable energy requirements of
this subsection (c) if they are sourced from a generating
unit whose costs were being recovered through rates
regulated by this State or any other state or states on or
after January 1, 2017. Each contract executed to purchase
renewable energy credits under this subsection (c) shall
provide for the contract's termination if the costs of the
generating unit supplying the renewable energy credits
subsequently begin to be recovered through rates regulated
by this State or any other state or states; and each
contract shall further provide that, in that event, the
supplier of the credits must return 110% of all payments
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,

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program, or pilot under Section 1-56 of this Act shall be
eligible to be counted toward the renewable energy
requirements of this subsection (c), regardless of how the
costs of these units are recovered. As long as a
generating unit or an identifiable portion of a generating
unit has not had and does not have its costs recovered
through rates regulated by this State or any other state,
HVDC renewable energy credits associated with that
generating unit or identifiable portion thereof shall be
eligible to be counted toward the renewable energy
requirements of this subsection (c).
(K) The long-term renewable resources procurement plan
developed by the Agency in accordance with subparagraph
(A) of this paragraph (1) shall include an Adjustable
Block program for the procurement of renewable energy
credits from new photovoltaic projects that are
distributed renewable energy generation devices or new
photovoltaic community renewable generation projects. The
Adjustable Block program shall be generally designed to
provide for the steady, predictable, and sustainable
growth of new solar photovoltaic development in Illinois.
To this end, the Adjustable Block program shall provide a
transparent annual schedule of prices and quantities to
enable the photovoltaic market to scale up and for
renewable energy credit prices to adjust at a predictable
rate over time. The prices set by the Adjustable Block

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program can be reflected as a set value or as the product
of a formula.
The Adjustable Block program shall include for each
category of eligible projects for each delivery year: a
single block of nameplate capacity, a price for renewable
energy credits within that block, and the terms and
conditions for securing a spot on a waitlist once the
block is fully committed or reserved. Except as outlined
below, the waitlist of projects in a given year will carry
over to apply to the subsequent year when another block is
opened. Only projects energized on or after June 1, 2017
shall be eligible for the Adjustable Block program. For
each category for each delivery year the Agency shall
determine the amount of generation capacity in each block,
and the purchase price for each block, provided that the
purchase price provided and the total amount of generation
in all blocks for all categories shall be sufficient to
meet the goals in this subsection (c). The Agency shall
strive to issue a single block sized to provide for
stability and market growth. The Agency shall establish
program eligibility requirements that ensure that projects
that enter the program are sufficiently mature to indicate
a demonstrable path to completion. The Agency may
periodically review its prior decisions establishing the
amount of generation capacity in each block, and the
purchase price for each block, and may propose, on an

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expedited basis, changes to these previously set values,
including but not limited to redistributing these amounts
and the available funds as necessary and appropriate,
subject to Commission approval as part of the periodic
plan revision process described in Section 16-111.5 of the
Public Utilities Act. The Agency may define different
block sizes, purchase prices, or other distinct terms and
conditions for projects located in different utility
service territories if the Agency deems it necessary to
meet the goals in this subsection (c).
The Adjustable Block program shall include the
following categories in at least the following amounts:
(i) At least 20% from distributed renewable energy
generation devices with a nameplate capacity of no
more than 25 kilowatts.
(ii) At least 20% from distributed renewable
energy generation devices with a nameplate capacity of
more than 25 kilowatts and no more than 5,000
kilowatts. The Agency may create sub-categories within
this category to account for the differences between
projects for small commercial customers, large
commercial customers, and public or non-profit
customers.
(iii) At least 30% from photovoltaic community
renewable generation projects. Capacity for this
category for the first 2 delivery years after the

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effective date of this amendatory Act of the 102nd
General Assembly shall be allocated to waitlist
projects as provided in paragraph (3) of item (iv) of
subparagraph (G). Starting in the third delivery year
after the effective date of this amendatory Act of the
102nd General Assembly or earlier if the Agency
determines there is additional capacity needed for to
meet previous delivery year requirements, the
following shall apply:
(1) the Agency shall select projects on a
first-come, first-serve basis, however the Agency
may suggest additional methods to prioritize
projects that are submitted at the same time;
(2) projects shall have subscriptions of 25 kW
or less for at least 50% of the facility's
nameplate capacity and the Agency shall price the
renewable energy credits with that as a factor;
(3) projects shall not be colocated with one
or more other community renewable generation
projects, as defined in the Agency's first revised
long-term renewable resources procurement plan
approved by the Commission on February 18, 2020,
such that the aggregate nameplate capacity exceeds
5,000 kilowatts; and
(4) projects greater than 2 MW may not apply
until after the approval of the Agency's revised

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Long-Term Renewable Resources Procurement Plan
after the effective date of this amendatory Act of
the 102nd General Assembly.
(iv) At least 15% from distributed renewable
generation devices or photovoltaic community renewable
generation projects installed at public schools. The
Agency may create subcategories within this category
to account for the differences between project size or
location. Projects located within environmental
justice communities or within Organizational Units
that fall within Tier 1 or Tier 2 shall be given
priority. Each of the Agency's periodic updates to its
long-term renewable resources procurement plan to
incorporate the procurement described in this
subparagraph (iv) shall also include the proposed
quantities or blocks, pricing, and contract terms
applicable to the procurement as indicated herein. In
each such update and procurement, the Agency shall set
the renewable energy credit price and establish
payment terms for the renewable energy credits
procured pursuant to this subparagraph (iv) that make
it feasible and affordable for public schools to
install photovoltaic distributed renewable energy
devices on their premises, including, but not limited
to, those public schools subject to the prioritization
provisions of this subparagraph. For the purposes of

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this item (iv):
"Environmental Justice Community" shall have the
same meaning set forth in the Agency's long-term
renewable resources procurement plan;
"Organization Unit", "Tier 1" and "Tier 2" shall
have the meanings set for in Section 18-8.15 of the
School Code;
"Public schools" shall have the meaning set forth
in Section 1-3 of the School Code.
(v) At least 5% from community-driven community
solar projects intended to provide more direct and
tangible connection and benefits to the communities
which they serve or in which they operate and,
additionally, to increase the variety of community
solar locations, models, and options in Illinois. As
part of its long-term renewable resources procurement
plan, the Agency shall develop selection criteria for
projects participating in this category. Nothing in
this Section shall preclude the Agency from creating a
selection process that maximizes community ownership
and community benefits in selecting projects to
receive renewable energy credits. Selection criteria
shall include:
(1) community ownership or community
wealth-building;
(2) additional direct and indirect community

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benefit, beyond project participation as a
subscriber, including, but not limited to,
economic, environmental, social, cultural, and
physical benefits;
(3) meaningful involvement in project
organization and development by community members
or nonprofit organizations or public entities
located in or serving the community;
(4) engagement in project operations and
management by nonprofit organizations, public
entities, or community members; and
(5) whether a project is developed in response
to a site-specific RFP developed by community
members or a nonprofit organization or public
entity located in or serving the community.
Selection criteria may also prioritize projects
that:
(1) are developed in collaboration with or to
provide complementary opportunities for the Clean
Jobs Workforce Network Program, the Illinois
Climate Works Preapprenticeship Program, the
Returning Residents Clean Jobs Training Program,
the Clean Energy Contractor Incubator Program, or
the Clean Energy Primes Contractor Accelerator
Program;
(2) increase the diversity of locations of

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community solar projects in Illinois, including by
locating in urban areas and population centers;
(3) are located in Equity Investment Eligible
Communities;
(4) are not greenfield projects;
(5) serve only local subscribers;
(6) have a nameplate capacity that does not
exceed 500 kW;
(7) are developed by an equity eligible
contractor; or
(8) otherwise meaningfully advance the goals
of providing more direct and tangible connection
and benefits to the communities which they serve
or in which they operate and increasing the
variety of community solar locations, models, and
options in Illinois.
For the purposes of this item (v):
"Community" means a social unit in which people
come together regularly to effect change; a social
unit in which participants are marked by a cooperative
spirit, a common purpose, or shared interests or
characteristics; or a space understood by its
residents to be delineated through geographic
boundaries or landmarks.
"Community benefit" means a range of services and
activities that provide affirmative, economic,

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environmental, social, cultural, or physical value to
a community; or a mechanism that enables economic
development, high-quality employment, and education
opportunities for local workers and residents, or
formal monitoring and oversight structures such that
community members may ensure that those services and
activities respond to local knowledge and needs.
"Community ownership" means an arrangement in
which an electric generating facility is, or over time
will be, in significant part, owned collectively by
members of the community to which an electric
generating facility provides benefits; members of that
community participate in decisions regarding the
governance, operation, maintenance, and upgrades of
and to that facility; and members of that community
benefit from regular use of that facility.
Terms and guidance within these criteria that are
not defined in this item (v) shall be defined by the
Agency, with stakeholder input, during the development
of the Agency's long-term renewable resources
procurement plan. The Agency shall develop regular
opportunities for projects to submit applications for
projects under this category, and develop selection
criteria that gives preference to projects that better
meet individual criteria as well as projects that
address a higher number of criteria.

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(vi) At least 10% from distributed renewable
energy generation devices, which includes distributed
renewable energy devices with a nameplate capacity
under 5,000 kilowatts or photovoltaic community
renewable generation projects, from applicants that
are equity eligible contractors. The Agency may create
subcategories within this category to account for the
differences between project size and type. The Agency
shall propose to increase the percentage in this item
(vi) over time to 40% based on factors, including, but
not limited to, the number of equity eligible
contractors and capacity used in this item (vi) in
previous delivery years.
The Agency shall propose a payment structure for
contracts executed pursuant to this paragraph under
which, upon a demonstration of qualification or need,
applicant firms are advanced capital disbursed after
contract execution but before the contracted project's
energization. The amount or percentage of capital
advanced prior to project energization shall be
sufficient to both cover any increase in development
costs resulting from prevailing wage requirements or
project-labor agreements, and designed to overcome
barriers in access to capital faced by equity eligible
contractors. The amount or percentage of advanced
capital may vary by subcategory within this category

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

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

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

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qualify and are procured under item (ii) and (v) of
subparagraph (K) of this paragraph (1) and any like
projects similar category that qualify and are
procured under item (vi), the contract length shall be
15 years. 15% of the renewable energy credit delivery
contract value, based on the estimated generation
during the first 15 years of operation, shall be paid
by the contracting utilities at the time that the
facility producing the renewable energy credits is
interconnected at the distribution system level of the
utility and verified as energized and compliant by the
Program Administrator. The remaining portion shall be
paid ratably over the subsequent 6-year period. The
electric utility shall receive and retire all
renewable energy credits generated by the project for
the first 15 years of operation. Renewable energy
credits generated by the project thereafter shall not
be transferred under the renewable energy credit
delivery contract with the counterparty electric
utility.
(iv) For those renewable energy credits that
qualify and are procured under items (iii) and (iv) of
subparagraph (K) of this paragraph (1), and any like
projects that qualify and are procured under item
(vi), the renewable energy credit delivery contract
length shall be 20 years and shall be paid over the

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delivery term, not to exceed during each delivery year
the contract price multiplied by the estimated annual
renewable energy credit generation amount. If
generation of renewable energy credits during a
delivery year exceeds the estimated annual generation
amount, the excess renewable energy credits shall be
carried forward to future delivery years and shall not
expire during the delivery term. If generation of
renewable energy credits during a delivery year,
including carried forward excess renewable energy
credits, if any, is less than the estimated annual
generation amount, payments during such delivery year
will not exceed the quantity generated plus the
quantity carried forward multiplied by the contract
price. The electric utility shall receive all
renewable energy credits generated by the project
during the first 20 years of operation and retire all
renewable energy credits paid for under this item (iv)
and return at the end of the delivery term all
renewable energy credits that were not paid for.
Renewable energy credits generated by the project
thereafter shall not be transferred under the
renewable energy credit delivery contract with the
counterparty electric utility. Notwithstanding the
preceding, for those projects participating under item
(iii) of subparagraph (K), the contract price for a

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delivery year shall be based on subscription levels as
measured on the higher of the first business day of the
delivery year or the first business day 6 months after
the first business day of the delivery year.
Subscription of 90% of nameplate capacity or greater
shall be deemed to be fully subscribed for the
purposes of this item (iv). For projects receiving a
20-year delivery contract, REC prices shall be
adjusted downward for consistency with the incentive
levels previously determined to be necessary to
support projects under 15-year delivery contracts,
taking into consideration any additional new
requirements placed on the projects, including, but
not limited to, labor standards.
(v) Each contract shall include provisions to
ensure the delivery of the estimated quantity of
renewable energy credits and ongoing collateral
requirements and other provisions deemed appropriate
by the Agency.
(vi) The utility shall be the counterparty to the
contracts executed under this subparagraph (L) that
are approved by the Commission under the process
described in Section 16-111.5 of the Public Utilities
Act. No contract shall be executed for an amount that
is less than one renewable energy credit per year.
(vii) If, at any time, approved applications for

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the Adjustable Block program exceed funds collected by
the electric utility or would cause the Agency to
exceed the limitation described in subparagraph (E) of
this paragraph (1) on the amount of renewable energy
resources that may be procured, then the Agency may
consider future uncommitted funds to be reserved for
these contracts on a first-come, first-served basis.
(viii) Nothing in this Section shall require the
utility to advance any payment or pay any amounts that
exceed the actual amount of revenues anticipated to be
collected by the utility under paragraph (6) of this
subsection (c) and subsection (k) of Section 16-108 of
the Public Utilities Act inclusive of eligible funds
collected in prior years and alternative compliance
payments for use by the utility, and contracts
executed under this Section shall expressly
incorporate this limitation.
(ix) Notwithstanding other requirements of this
subparagraph (L), no modification shall be required to
Adjustable Block program contracts if they were
already executed prior to the establishment, approval,
and implementation of new contract forms as a result
of this amendatory Act of the 102nd General Assembly.
(x) Contracts may be assignable, but only to
entities first deemed by the Agency to have met
program terms and requirements applicable to direct

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program participation. In developing contracts for the
delivery of renewable energy credits, the Agency shall
be permitted to establish fees applicable to each
contract assignment.
(M) The Agency shall be authorized to retain one or
more experts or expert consulting firms to develop,
administer, implement, operate, and evaluate the
Adjustable Block program described in subparagraph (K) of
this paragraph (1), and the Agency shall retain the
consultant or consultants in the same manner, to the
extent practicable, as the Agency retains others to
administer provisions of this Act, including, but not
limited to, the procurement administrator. The selection
of experts and expert consulting firms and the procurement
process described in this subparagraph (M) are exempt from
the requirements of Section 20-10 of the Illinois
Procurement Code, under Section 20-10 of that Code. The
Agency shall strive to minimize administrative expenses in
the implementation of the Adjustable Block program.
The Program Administrator may charge application fees
to participating firms to cover the cost of program
administration. Any application fee amounts shall
initially be determined through the long-term renewable
resources procurement plan, and modifications to any
application fee that deviate more than 25% from the
Commission's approved value must be approved by the

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Commission as a long-term plan revision under Section
16-111.5 of the Public Utilities Act. The Agency shall
consider stakeholder feedback when making adjustments to
application fees and shall notify stakeholders in advance
of any planned changes.
In addition to covering the costs of program
administration, the Agency, in conjunction with its
Program Administrator, may also use the proceeds of such
fees charged to participating firms to support public
education and ongoing regional and national coordination
with nonprofit organizations, public bodies, and others
engaged in the implementation of renewable energy
incentive programs or similar initiatives. This work may
include developing papers and reports, hosting regional
and national conferences, and other work deemed necessary
by the Agency to position the State of Illinois as a
national leader in renewable energy incentive program
development and administration.
The Agency and its consultant or consultants shall
monitor block activity, share program activity with
stakeholders and conduct quarterly meetings to discuss
program activity and market conditions. If necessary, the
Agency may make prospective administrative adjustments to
the Adjustable Block program design, such as making
adjustments to purchase prices as necessary to achieve the
goals of this subsection (c). Program modifications to any

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block price that do not deviate from the Commission's
approved value by more than 10% shall take effect
immediately and are not subject to Commission review and
approval. Program modifications to any block price that
deviate more than 10% from the Commission's approved value
must be approved by the Commission as a long-term plan
amendment under Section 16-111.5 of the Public Utilities
Act. The Agency shall consider stakeholder feedback when
making adjustments to the Adjustable Block design and
shall notify stakeholders in advance of any planned
changes.
The Agency and its program administrators for both the
Adjustable Block program and the Illinois Solar for All
Program, consistent with the requirements of this
subsection (c) and subsection (b) of Section 1-56 of this
Act, shall propose the Adjustable Block program terms,
conditions, and requirements, including the prices to be
paid for renewable energy credits, where applicable, and
requirements applicable to participating entities and
project applications, through the development, review, and
approval of the Agency's long-term renewable resources
procurement plan described in this subsection (c) and
paragraph (5) of subsection (b) of Section 16-111.5 of the
Public Utilities Act. Terms, conditions, and requirements
for program participation shall include the following:
(i) The Agency shall establish a registration

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

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

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implicate the jurisdiction of the Office of the
Attorney General, the Illinois Commerce Commission, or
local, State, or federal law enforcement, the Agency
shall also refer complaints to those entities as
appropriate.
(N) The Agency shall establish the terms, conditions,
and program requirements for photovoltaic community
renewable generation projects with a goal to expand access
to a broader group of energy consumers, to ensure robust
participation opportunities for residential and small
commercial customers and those who cannot install
renewable energy on their own properties. Subject to
reasonable limitations, any plan approved by the
Commission shall allow subscriptions to community
renewable generation projects to be portable and
transferable. For purposes of this subparagraph (N),
"portable" means that subscriptions may be retained by the
subscriber even if the subscriber relocates or changes its
address within the same utility service territory; and
"transferable" means that a subscriber may assign or sell
subscriptions to another person within the same utility
service territory.
Through the development of its long-term renewable
resources procurement plan, the Agency may consider
whether community renewable generation projects utilizing
technologies other than photovoltaics should be supported

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through State-administered incentive funding, and may
issue requests for information to gauge market demand.
Electric utilities shall provide a monetary credit to
a subscriber's subsequent bill for service for the
proportional output of a community renewable generation
project attributable to that subscriber as specified in
Section 16-107.5 of the Public Utilities Act.
The Agency shall purchase renewable energy credits
from subscribed shares of photovoltaic community renewable
generation projects through the Adjustable Block program
described in subparagraph (K) of this paragraph (1) or
through the Illinois Solar for All Program described in
Section 1-56 of this Act. The electric utility shall
purchase any unsubscribed energy from community renewable
generation projects that are Qualifying Facilities ("QF")
under the electric utility's tariff for purchasing the
output from QFs under Public Utilities Regulatory Policies
Act of 1978.
The owners of and any subscribers to a community
renewable generation project shall not be considered
public utilities or alternative retail electricity
suppliers under the Public Utilities Act solely as a
result of their interest in or subscription to a community
renewable generation project and shall not be required to
become an alternative retail electric supplier by
participating in a community renewable generation project

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with a public utility.
(O) For the delivery year beginning June 1, 2018, the
long-term renewable resources procurement plan required by
this subsection (c) shall provide for the Agency to
procure contracts to continue offering the Illinois Solar
for All Program described in subsection (b) of Section
1-56 of this Act, and the contracts approved by the
Commission shall be executed by the utilities that are
subject to this subsection (c). The long-term renewable
resources procurement plan shall allocate up to
$50,000,000 per delivery year to fund the programs, and
the plan shall determine the amount of funding to be
apportioned to the programs identified in subsection (b)
of Section 1-56 of this Act; provided that for the
delivery years beginning June 1, 2021, June 1, 2022, and
June 1, 2023, the long-term renewable resources
procurement plan may average the annual budgets over a
3-year period to account for program ramp-up. For the
delivery years beginning June 1, 2021, June 1, 2024, June
1, 2027, and June 1, 2030 and additional $10,000,000 shall
be provided to the Department of Commerce and Economic
Opportunity to implement the workforce development
programs and reporting as outlined in Section 16-108.12 of
the Public Utilities Act. In making the determinations
required under this subparagraph (O), the Commission shall
consider the experience and performance under the programs

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and any evaluation reports. The Commission shall also
provide for an independent evaluation of those programs on
a periodic basis that are funded under this subparagraph
(O).
(P) All programs and procurements under this
subsection (c) shall be designed to encourage
participating projects to use a diverse and equitable
workforce and a diverse set of contractors, including
minority-owned businesses, disadvantaged businesses,
trade unions, graduates of any workforce training programs
administered under this Act, and small businesses.
The Agency shall develop a method to optimize
procurement of renewable energy credits from proposed
utility-scale projects that are located in communities
eligible to receive Energy Transition Community Grants
pursuant to Section 10-20 of the Energy Community
Reinvestment Act. If this requirement conflicts with other
provisions of law or the Agency determines that full
compliance with the requirements of this subparagraph (P)
would be unreasonably costly or administratively
impractical, the Agency is to propose alternative
approaches to achieve development of renewable energy
resources in communities eligible to receive Energy
Transition Community Grants pursuant to Section 10-20 of
the Energy Community Reinvestment Act or seek an exemption
from this requirement from the Commission.

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(Q) Each facility listed in subitems (i) through
(viii) of item (1) of this subparagraph (Q) for which a
renewable energy credit delivery contract is signed after
the effective date of this amendatory Act of the 102nd
General Assembly is subject to the following requirements
through the Agency's long-term renewable resources
procurement plan:
(1) Each facility shall be subject to the
prevailing wage requirements included in the
Prevailing Wage Act. The Agency shall require
verification that all construction performed on the
facility by the renewable energy credit delivery
contract holder, its contractors, or its
subcontractors relating to construction of the
facility is performed by construction employees
receiving an amount for that work equal to or greater
than the general prevailing rate, as that term is
defined in Section 3 of the Prevailing Wage Act. For
purposes of this item (1), "house of worship" means
property that is both (1) used exclusively by a
religious society or body of persons as a place for
religious exercise or religious worship and (2)
recognized as exempt from taxation pursuant to Section
15-40 of the Property Tax Code. This item (1) shall
apply to any the following:
(i) all new utility-scale wind projects;

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

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single-family or multi-family residential
buildings; and (3) are not houses of worship where
the aggregate capacity including collocated
projects would not exceed 100 kilowatts.
(2) Renewable energy credits procured from new
utility-scale wind projects, new utility-scale solar
projects, and new brownfield solar projects pursuant
to Agency procurement events occurring after the
effective date of this amendatory Act of the 102nd
General Assembly must be from facilities built by
general contractors that must enter into a project
labor agreement, as defined by this Act, prior to
construction. The project labor agreement shall be
filed with the Director in accordance with procedures
established by the Agency through its long-term
renewable resources procurement plan. Any information
submitted to the Agency in this item (2) shall be
considered commercially sensitive information. At a
minimum, the project labor agreement must provide the
names, addresses, and occupations of the owner of the
plant and the individuals representing the labor
organization employees participating in the project
labor agreement consistent with the Project Labor
Agreements Act. The agreement must also specify the
terms and conditions as defined by this Act.
(3) It is the intent of this Section to ensure that

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economic development occurs across Illinois
communities, that emerging businesses may grow, and
that there is improved access to the clean energy
economy by persons who have greater economic burdens
to success. The Agency shall take into consideration
the unique cost of compliance of this subparagraph (Q)
that might be borne by equity eligible contractors,
shall include such costs when determining the price of
renewable energy credits in the Adjustable Block
program, and shall take such costs into consideration
in a nondiscriminatory manner when comparing bids for
competitive procurements. The Agency shall consider
costs associated with compliance whether in the
development, financing, or construction of projects.
The Agency shall periodically review the assumptions
in these costs and may adjust prices, in compliance
with subparagraph (M) of this paragraph (1).
(R) In its long-term renewable resources procurement
plan, the Agency shall establish a self-direct renewable
portfolio standard compliance program for eligible
self-direct customers that purchase renewable energy
credits from utility-scale wind and solar projects through
long-term agreements for purchase of renewable energy
credits as described in this Section. Such long-term
agreements may include the purchase of energy or other
products on a physical or financial basis and may involve

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

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

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

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commercial and industrial energy customers and make
that report publicly available. If demand for
participation in the self-direct renewable portfolio
standard compliance program exceeds availability, the
Agency shall ensure participation is evenly split
between commercial and industrial users to the extent
there is sufficient demand from both customer classes.
Each renewable energy credit procured pursuant to this
subparagraph (R) by a self-direct customer shall
reduce the total volume of renewable energy credits
the Agency is otherwise required to procure from new
utility-scale projects pursuant to subparagraph (C) of
paragraph (1) of this subsection (c) on behalf of
contracting utilities where the eligible self-direct
customer is located. The self-direct customer shall
file an annual compliance report with the Agency
pursuant to terms established by the Agency through
its long-term renewable resources procurement plan to
be eligible for participation in this program.
Customers must provide the Agency with their most
recent electricity billing statements or other
information deemed necessary by the Agency to
demonstrate they are an eligible self-direct customer.
(4) The Commission shall approve a reduction in
the volumetric charges collected pursuant to Section
16-108 of the Public Utilities Act for approved

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

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

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projects or new photovoltaic projects, including
supporting documentation;
(iii) certification that the contract or
contracts for new renewable energy resources are
long-term contracts with term lengths of at least
10 years, including supporting documentation;
(iv) certification of the quantities of
renewable energy credits that the customer will
purchase each year under such contract or
contracts, including supporting documentation;
(v) proof that the contract is sufficient to
produce renewable energy credits to be equivalent
in volume to at least 40% of the large energy
customer's usage from the previous delivery year,
measured to the nearest megawatt-hour; and
(vi) certification that the customer intends
to maintain the contract for the duration of the
length of the contract.
(6) If a customer receives the self-direct credit
but fails to properly procure and retire renewable
energy credits as required under this subparagraph
(R), the Commission, on petition from the Agency and
after notice and hearing, may direct such customer's
utility to recover the cost of the wrongfully received
self-direct credits plus interest through an adder to
charges assessed pursuant to Section 16-108 of the

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Public Utilities Act. Self-direct customers who
knowingly fail to properly procure and retire
renewable energy credits and do not notify the Agency
are ineligible for continued participation in the
self-direct renewable portfolio standard compliance
program.
(2) (Blank).
(3) (Blank).
(4) The electric utility shall retire all renewable
energy credits used to comply with the standard.
(5) Beginning with the 2010 delivery year and ending
June 1, 2017, an electric utility subject to this
subsection (c) shall apply the lesser of the maximum
alternative compliance payment rate or the most recent
estimated alternative compliance payment rate for its
service territory for the corresponding compliance period,
established pursuant to subsection (d) of Section 16-115D
of the Public Utilities Act to its retail customers that
take service pursuant to the electric utility's hourly
pricing tariff or tariffs. The electric utility shall
retain all amounts collected as a result of the
application of the alternative compliance payment rate or
rates to such customers, and, beginning in 2011, the
utility shall include in the information provided under
item (1) of subsection (d) of Section 16-111.5 of the
Public Utilities Act the amounts collected under the

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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(B) For purposes of this paragraph (11), diversity
composition shall be based on the percentage, which
shall be a minimum of 25%, of eligible expenditures
for contract awards for materials and services (which
shall be defined in the plan) to business enterprises
owned by minority persons, women, veterans, or persons
with disabilities as defined in Section 2 of the
Business Enterprise for Minorities, Women, Veterans,
and Persons with Disabilities Act, to LGBTQ business
enterprises, to veteran-owned business enterprises,
and to business enterprises located in environmental
justice communities. The diversity composition goals
of the plan may include eligible expenditures in areas
for vendor or supplier opportunities in addition to
development and construction of the project, and may
exclude from eligible expenditures materials and
services with limited market availability, limited
production and availability from suppliers in the
United States, such as solar panels and storage
batteries, and material and services that are subject
to critical energy infrastructure or cybersecurity
requirements or restrictions. The plan may provide
that the diversity composition goals may be met
through Tier 1 Direct or Tier 2 subcontracting
expenditures or a combination thereof for the project.
(C) The plan shall provide for, but not be limited

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

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

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

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

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

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designee. The Agency shall offer a corrective action
plan for any such entities to assist them in obtaining
compliance and shall allow continued access to
procurement programs upon an approved vendor or
designee demonstrating compliance.
(E) The Agency shall pursue efficiencies achieved
by combining with other approved vendor or designee
reporting.
(2) Equity accountability system within the Adjustable
Block program. The equity category described in item (vi)
of subparagraph (K) of subsection (c) is only available to
applicants that are equity eligible contractors.
(3) Equity accountability system within competitive
procurements. Through its long-term renewable resources
procurement plan, the Agency shall develop requirements
for ensuring that competitive procurement processes,
including utility-scale solar, utility-scale wind, and
brownfield site photovoltaic projects, advance the equity
goals of this subsection (c-10). Subject to Commission
approval, the Agency shall develop bid application
requirements and a bid evaluation methodology for ensuring
that utilization of equity eligible contractors, whether
as bidders or as participants on project development, is
optimized, including requiring that winning or successful
applicants for utility-scale projects are or will partner
with equity eligible contractors and giving preference to

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

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

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subsequent waiver request from an applicant shall be
subject to the requirements of this Section and shall
specify efforts made to reach compliance. When
considering whether to grant a waiver, and to what
extent, the Agency shall consider the degree to which
similarly situated applicants have been able to meet
these minimum equity commitments. For repeated waiver
requests for specific lack of eligible persons or
eligible contractors available, the Agency shall make
recommendations to target recruitment to add such
eligible persons or eligible contractors to the
database.
(5) The Agency shall collect information about work on
projects or portfolios of projects subject to these
minimum equity standards to ensure compliance with this
subsection (c-10). Reporting in furtherance of this
requirement may be combined with other annual reporting
requirements. Such reporting shall include proof of
certification of each equity eligible contractor or equity
eligible person during the applicable time period.
(6) The Agency shall keep confidential all information
and communication that provides private or personal
information.
(7) Modifications to the equity accountability system.
As part of the update of the long-term renewable resources
procurement plan to be initiated in 2023, or sooner if the

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Agency deems necessary, the Agency shall determine the
extent to which the equity accountability system described
in this subsection (c-10) has advanced the goals of this
amendatory Act of the 102nd General Assembly, including
through the inclusion of equity eligible persons and
equity eligible contractors in renewable energy credit
projects. If the Agency finds that the equity
accountability system has failed to meet those goals to
its fullest potential, the Agency may revise the following
criteria for future Agency procurements: (A) the
percentage of project workforce, or other appropriate
workforce measure, certified as equity eligible persons or
equity eligible contractors; (B) definitions for equity
investment eligible persons and equity investment eligible
community; and (C) such other modifications necessary to
advance the goals of this amendatory Act of the 102nd
General Assembly effectively. Such revised criteria may
also establish distinct equity accountability systems for
different types of procurements or different regions of
the State if the Agency finds that doing so will further
the purposes of such programs. Revisions shall be
developed with stakeholder input, including from equity
eligible persons, equity eligible contractors, and
community-based organizations that work with such persons
and contractors.
(c-15) Racial discrimination elimination powers and

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

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

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

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

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

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

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

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

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purposes of this subsection (d), the total amount paid for
electric service includes without limitation amounts paid
for supply, transmission, distribution, surcharges and
add-on taxes.
Notwithstanding the requirements of this subsection
(d), the total amount paid under sourcing agreements with
clean coal facilities pursuant to the procurement plan for
any given year shall be reduced by an amount necessary to
limit the annual estimated average net increase due to the
costs of these resources included in the amounts paid by
eligible retail customers in connection with electric
service to:
(A) in 2010, no more than 0.5% of the amount paid
per kilowatthour by those customers during the year
ending May 31, 2009;
(B) in 2011, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2010 or 1% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009;
(C) in 2012, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2011 or 1.5% of the
amount paid per kilowatthour by those customers during
the year ending May 31, 2009;
(D) in 2013, the greater of an additional 0.5% of

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

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

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

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sourcing agreement shall pay the contract price
for electricity delivered under such sourcing
agreement;
(ii) require delivery of electricity to the
regional transmission organization market of the
utility that is party to such sourcing agreement;
(iii) require the utility party to such
sourcing agreement to buy from the initial clean
coal facility in each hour an amount of energy
equal to all clean coal energy made available from
the initial clean coal facility during such hour
times a fraction, the numerator of which is such
utility's retail market sales of electricity
(expressed in kilowatthours sold) in the State
during the prior calendar month and the
denominator of which is the total retail market
sales of electricity (expressed in kilowatthours
sold) in the State by utilities during such prior
month and the sales of electricity (expressed in
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this
subsection (d) and paragraph (5) of subsection (d)
of Section 16-115 of the Public Utilities Act,
provided that the amount purchased by the utility
in any year will be limited by paragraph (2) of

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

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any year will be limited by paragraph (2) of this
subsection (d);
(ii) provide that the utility's payment
obligation in respect of the quantity of
electricity determined pursuant to the preceding
clause (i) shall be limited to an amount equal to
(1) the difference between the contract price
determined pursuant to subparagraph (A) of
paragraph (3) of this subsection (d) and the
day-ahead price for electricity delivered to the
regional transmission organization market of the
utility that is party to such sourcing agreement
(or any successor delivery point at which such
utility's supply obligations are financially
settled on an hourly basis) (the "reference
price") on the day preceding the day on which the
electricity is delivered to the initial clean coal
facility busbar, multiplied by (2) the quantity of
electricity determined pursuant to the preceding
clause (i); and
(iii) not require the utility to take physical
delivery of the electricity produced by the
facility;
(D) general provisions, which shall:
(i) specify a term of no more than 30 years,
commencing on the commercial operation date of the

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

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

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clean coal facility shall not forfeit its
designation as a clean coal facility if the
facility fails to fully comply with the applicable
carbon sequestration requirements in any given
year, provided the requisite offsets are
purchased. However, the Attorney General, on
behalf of the People of the State of Illinois, may
specifically enforce the facility's sequestration
requirement and the other terms of this contract
provision. Compliance with the sequestration
requirements and offset purchase requirements
specified in paragraph (3) of this subsection (d)
shall be reviewed annually by an independent
expert retained by the owner of the initial clean
coal facility, with the advance written approval
of the Attorney General. The Commission may, in
the course of the review specified in item (vii),
reduce the allowable return on equity for the
facility if the facility willfully fails to comply
with the carbon capture and sequestration
requirements set forth in this item (v);
(vi) include limits on, and accordingly
provide for modification of, the amount the
utility is required to source under the sourcing
agreement consistent with paragraph (2) of this
subsection (d);

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

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

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

SB0238 - 247 - LRB103 24882 DTM 51215 b
facilities, an analysis of the rate impacts on
residential and small business customers over the life
of the sourcing agreements, and an analysis of the
likelihood that the initial clean coal facility will
commence commercial operation by and be delivering
power to the facility's busbar by 2016. To assist in
the preparation of its report, the Commission, in
consultation with the Agency, may hire one or more
experts or consultants, the costs of which shall be
paid for by the owner of the initial clean coal
facility. The Commission and Agency may begin the
process of selecting such experts or consultants prior
to receipt of the facility cost report.
(iii) General Assembly approval. The proposed
sourcing agreements shall not take effect unless,
based on the facility cost report and the Commission's
report, the General Assembly enacts authorizing
legislation approving (A) the projected price, stated
in cents per kilowatthour, to be charged for
electricity generated by the initial clean coal
facility, (B) the projected impact on residential and
small business customers' bills over the life of the
sourcing agreements, and (C) the maximum allowable
return on equity for the project; and
(iv) Commission review. If the General Assembly
enacts authorizing legislation pursuant to

SB0238 - 248 - LRB103 24882 DTM 51215 b
subparagraph (iii) approving a sourcing agreement, the
Commission shall, within 90 days of such enactment,
complete a review of such sourcing agreement. During
such time period, the Commission shall implement any
directive of the General Assembly, resolve any
disputes between the parties to the sourcing agreement
concerning the terms of such agreement, approve the
form of such agreement, and issue an order finding
that the sourcing agreement is prudent and reasonable.
The facility cost report shall be prepared as follows:
(A) The facility cost report shall be prepared by
duly licensed engineering and construction firms
detailing the estimated capital costs payable to one
or more contractors or suppliers for the engineering,
procurement and construction of the components
comprising the initial clean coal facility and the
estimated costs of operation and maintenance of the
facility. The facility cost report shall include:
(i) an estimate of the capital cost of the
core plant based on one or more front end
engineering and design studies for the
gasification island and related facilities. The
core plant shall include all civil, structural,
mechanical, electrical, control, and safety
systems.
(ii) an estimate of the capital cost of the

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

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

SB0238 - 251 - LRB103 24882 DTM 51215 b
analysis of the expected capacity factor for the
initial clean coal facility.
(E) Amounts paid to third parties unrelated to the
owner or owners of the initial clean coal facility to
prepare the core plant construction cost quote,
including the front end engineering and design study,
and the operating and maintenance cost quote will be
reimbursed through Coal Development Bonds.
(5) Re-powering and retrofitting coal-fired power
plants previously owned by Illinois utilities to qualify
as clean coal facilities. During the 2009 procurement
planning process and thereafter, the Agency and the
Commission shall consider sourcing agreements covering
electricity generated by power plants that were previously
owned by Illinois utilities and that have been or will be
converted into clean coal facilities, as defined by
Section 1-10 of this Act. Pursuant to such procurement
planning process, the owners of such facilities may
propose to the Agency sourcing agreements with utilities
and alternative retail electric suppliers required to
comply with subsection (d) of this Section and item (5) of
subsection (d) of Section 16-115 of the Public Utilities
Act, covering electricity generated by such facilities. In
the case of sourcing agreements that are power purchase
agreements, the contract price for electricity sales shall
be established on a cost of service basis. In the case of

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sourcing agreements that are contracts for differences,
the contract price from which the reference price is
subtracted shall be established on a cost of service
basis. The Agency and the Commission may approve any such
utility sourcing agreements that do not exceed cost-based
benchmarks developed by the procurement administrator, in
consultation with the Commission staff, Agency staff and
the procurement monitor, subject to Commission review and
approval. The Commission shall have authority to inspect
all books and records associated with these clean coal
facilities during the term of any such contract.
(6) Costs incurred under this subsection (d) or
pursuant to a contract entered into under this subsection
(d) shall be deemed prudently incurred and reasonable in
amount and the electric utility shall be entitled to full
cost recovery pursuant to the tariffs filed with the
Commission.
(d-5) Zero emission standard.
(1) Beginning with the delivery year commencing on
June 1, 2017, the Agency shall, for electric utilities
that serve at least 100,000 retail customers in this
State, procure contracts with zero emission facilities
that are reasonably capable of generating cost-effective
zero emission credits in an amount approximately equal to
16% of the actual amount of electricity delivered by each
electric utility to retail customers in the State during

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calendar year 2014. For an electric utility serving fewer
than 100,000 retail customers in this State that
requested, under Section 16-111.5 of the Public Utilities
Act, that the Agency procure power and energy for all or a
portion of the utility's Illinois load for the delivery
year commencing June 1, 2016, the Agency shall procure
contracts with zero emission facilities that are
reasonably capable of generating cost-effective zero
emission credits in an amount approximately equal to 16%
of the portion of power and energy to be procured by the
Agency for the utility. The duration of the contracts
procured under this subsection (d-5) shall be for a term
of 10 years ending May 31, 2027. The quantity of zero
emission credits to be procured under the contracts shall
be all of the zero emission credits generated by the zero
emission facility in each delivery year; however, if the
zero emission facility is owned by more than one entity,
then the quantity of zero emission credits to be procured
under the contracts shall be the amount of zero emission
credits that are generated from the portion of the zero
emission facility that is owned by the winning supplier.
The 16% value identified in this paragraph (1) is the
average of the percentage targets in subparagraph (B) of
paragraph (1) of subsection (c) of this Section for the 5
delivery years beginning June 1, 2017.
The procurement process shall be subject to the

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

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

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

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

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

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

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

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

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

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Protection Agency eGrid subregion carbon
dioxide emission rate and the U.S. Interagency
Working Group on Social Cost of Carbon's price
in the August 2016 Technical Update using a 3%
discount rate, adjusted for inflation for each
delivery year; and
(bb) the costs of replacement with other
zero carbon dioxide resources, including wind
and photovoltaic, based upon the simple
average of the following:
(I) the price, or if there is more
than one price, the average of the prices,
paid for renewable energy credits from new
utility-scale wind projects in the
procurement events specified in item (i)
of subparagraph (G) of paragraph (1) of
subsection (c) of this Section; and
(II) the price, or if there is more
than one price, the average of the prices,
paid for renewable energy credits from new
utility-scale solar projects and
brownfield site photovoltaic projects in
the procurement events specified in item
(ii) of subparagraph (G) of paragraph (1)
of subsection (c) of this Section and,
after January 1, 2015, renewable energy

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

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

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

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

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

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

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

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

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

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

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residents.
(2) As used in this subsection:
"Baseline costs" means costs used to establish a customer
protection cap that have been evaluated through an independent
audit of a carbon-free energy resource conducted by the
Environmental Protection Agency that evaluated projected
annual costs for operation and maintenance expenses; fully
allocated overhead costs, which shall be allocated using the
methodology developed by the Institute for Nuclear Power
Operations; fuel expenditures; nonfuel capital expenditures;
spent fuel expenditures; a return on working capital; the cost
of operational and market risks that could be avoided by
ceasing operation; and any other costs necessary for continued
operations, provided that "necessary" means, for purposes of
this definition, that the costs could reasonably be avoided
only by ceasing operations of the carbon-free energy resource.
"Carbon mitigation credit" means a tradable credit that
represents the carbon emission reduction attributes of one
megawatt-hour of energy produced from a carbon-free energy
resource.
"Carbon-free energy resource" means a generation facility
that: (1) is fueled by nuclear power; and (2) is
interconnected to PJM Interconnection, LLC.
(3) Procurement.
(A) Beginning with the delivery year commencing on
June 1, 2022, the Agency shall, for electric utilities

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

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

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

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applicable.
(ii) Contracts for carbon mitigation credits shall
commence with the delivery year beginning on June 1,
2022 and shall be for a term of 5 delivery years
concluding on May 31, 2027.
(iii) The price per carbon mitigation credit to be
paid under a contract for a given delivery year shall
be equal to an accepted bid price less the sum of:
(I) one of the following energy price indices,
selected by the bidder at the time of the bid for
the term of the contract:
(aa) the weighted-average hourly day-ahead
price for the applicable delivery year at the
busbar of all resources procured pursuant to
this subsection (d-10), weighted by actual
production from the resources; or
(bb) the projected energy price for the
PJM Interconnection, LLC Northern Illinois Hub
for the applicable delivery year determined
according to subitem (aa) of item (iii) of
subparagraph (B) of paragraph (1) of
subsection (d-5).
(II) the Base Residual Auction Capacity Price
for the ComEd zone as determined by PJM
Interconnection, LLC, divided by 24 hours per day,
for the applicable delivery year for the first 3

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

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calculation performed under item (iii) of this
subparagraph (C) for a given delivery year results in
a net negative value, then the supplier counterparty
to the contract shall multiply such net value by the
applicable contract quantity and remit such amount to
the electric utility counterparty. The electric
utility shall reflect such amounts remitted by
suppliers as a credit on its retail customer bills as
soon as practicable.
(iv) To ensure that retail customers in Northern
Illinois do not pay more for carbon mitigation credits
than the value such credits provide, and
notwithstanding the provisions of this subsection
(d-10), the Agency shall not accept bids for contracts
that exceed a customer protection cap equal to the
baseline costs of carbon-free energy resources.
The baseline costs for the applicable year shall
be the following:
(I) For the delivery year beginning June 1,
2022, the baseline costs shall be an amount equal
to $30.30 per megawatt-hour.
(II) For the delivery year beginning June 1,
2023, the baseline costs shall be an amount equal
to $32.50 per megawatt-hour.
(III) For the delivery year beginning June 1,
2024, the baseline costs shall be an amount equal

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

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

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ensure that the public interest criteria are applied to
the procurement. The Plan shall, to the extent practical
and permissible by federal law, ensure that successful
bidders make commercially reasonable efforts to apply for
federal tax credits, direct payments, or similar subsidy
programs that support carbon-free generation and for which
the successful bidder is eligible. Upon publishing of the
carbon mitigation credit procurement plan, copies of the
plan shall be posted and made publicly available on the
Agency's website. All interested parties shall have 7 days
following the date of posting to provide comment to the
Agency on the plan. All comments shall be posted to the
Agency's website. Following the end of the comment period,
but no more than 19 days later than the effective date of
this amendatory Act of the 102nd General Assembly, the
Agency shall revise the plan as necessary based on the
comments received and file its carbon mitigation credit
procurement plan with the Commission.
(E) If the Commission determines that the plan is
likely to result in the procurement of cost-effective
carbon mitigation credits, then the Commission shall,
after notice and hearing and opportunity for comment, but
no later than 42 days after the Agency filed the plan,
approve the plan or approve it with modification. For
purposes of this subsection (d-10), "cost-effective" means
carbon mitigation credits that are procured from

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

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

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the December 3, 2021 contract execution deadline.
Following the completion of such procurements, and
consistent with this paragraph (3), the Agency shall
calculate the payments to be made under each contract in a
timely fashion.
(F-1) Costs incurred by the electric utility pursuant
to a contract authorized by this subsection (d-10) shall
be deemed prudently incurred and reasonable in amount, and
the electric utility shall be entitled to full cost
recovery pursuant to a tariff or tariffs filed with the
Commission.
(G) The counterparty electric utility shall retire all
carbon mitigation credits used to comply with the
requirements of this subsection (d-10).
(H) If a carbon-free energy resource is sold to
another owner, the rights, obligations, and commitments
under this subsection (d-10) shall continue to the
subsequent owner.
(I) This subsection (d-10) shall become inoperative on
January 1, 2028.
(e) The draft procurement plans are subject to public
comment, as required by Section 16-111.5 of the Public
Utilities Act.
(f) The Agency shall submit the final procurement plan to
the Commission. The Agency shall revise a procurement plan if
the Commission determines that it does not meet the standards

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set forth in Section 16-111.5 of the Public Utilities Act.
(g) The Agency shall assess fees to each affected utility
to recover the costs incurred in preparation of the annual
procurement plan for the utility.
(h) The Agency shall assess fees to each bidder to recover
the costs incurred in connection with a competitive
procurement process.
(i) A renewable energy credit, carbon emission credit,
zero emission credit, or carbon mitigation credit can only be
used once to comply with a single portfolio or other standard
as set forth in subsection (c), subsection (d), or subsection
(d-5) of this Section, respectively. A renewable energy
credit, carbon emission credit, zero emission credit, or
carbon mitigation credit cannot be used to satisfy the
requirements of more than one standard. If more than one type
of credit is issued for the same megawatt hour of energy, only
one credit can be used to satisfy the requirements of a single
standard. After such use, the credit must be retired together
with any other credits issued for the same megawatt hour of
energy.
(Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
102-662, eff. 9-15-21.)
Section 55. The Illinois Health Information Exchange and
Technology Act is amended by changing Section 20 as follows:

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(20 ILCS 3860/20)
(Section scheduled to be repealed on January 1, 2027)
Sec. 20. Powers and duties of the Illinois Health
Information Exchange Office. The Office has the following
powers, together with all powers incidental or necessary to
accomplish the purposes of this Act:
(1) The Office shall create and administer the ILHIE
using information systems and processes that are secure,
are cost effective, and meet all other relevant privacy
and security requirements under State and federal law.
(2) The Office shall establish and adopt standards and
requirements for the use of health information and the
requirements for participation in the ILHIE by persons or
entities including, but not limited to, health care
providers, payors, and local health information exchanges.
(3) The Office shall establish minimum standards for
accessing the ILHIE to ensure that the appropriate
security and privacy protections apply to health
information, consistent with applicable federal and State
standards and laws. The Office shall have the power to
suspend, limit, or terminate the right to participate in
the ILHIE for non-compliance or failure to act, with
respect to applicable standards and laws, in the best
interests of patients, users of the ILHIE, or the public.
The Office may seek all remedies allowed by law to address
any violation of the terms of participation in the ILHIE.

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(4) The Office shall identify barriers to the adoption
of electronic health records systems, including
researching the rates and patterns of dissemination and
use of electronic health record systems throughout the
State. The Office shall make the results of the research
available on the Department of Healthcare and Family
Services' website.
(5) The Office shall prepare educational materials and
educate the general public on the benefits of electronic
health records, the ILHIE, and the safeguards available to
prevent unauthorized disclosure of health information.
(6) The Office may appoint or designate an
institutional review board in accordance with federal and
State law to review and approve requests for research in
order to ensure compliance with standards and patient
privacy and security protections as specified in paragraph
(3) of this Section.
(7) The Office may enter into all contracts and
agreements necessary or incidental to the performance of
its powers under this Act. The Office's expenditures of
private funds are exempt from the Illinois Procurement
Code, pursuant to Section 1-10 of that Act.
Notwithstanding this exception, the Office shall comply
with the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act.
(8) The Office may solicit and accept grants, loans,

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contributions, or appropriations from any public or
private source and may expend those moneys, through
contracts, grants, loans, or agreements, on activities it
considers suitable to the performance of its duties under
this Act.
(9) The Office may determine, charge, and collect any
fees, charges, costs, and expenses from any healthcare
provider or entity in connection with its duties under
this Act. Moneys collected under this paragraph (9) shall
be deposited into the Health Information Exchange Fund.
(10) The Office may employ and discharge staff,
including administrative, technical, expert,
professional, and legal staff, as is necessary or
convenient to carry out the purposes of this Act and as
authorized by the Personnel Code.
(10.5) Staff employed by the Illinois Health
Information Exchange Authority on the effective date of
this amendatory Act of the 101st General Assembly shall
transfer to the Office within the Department of Healthcare
and Family Services.
(10.6) The status and rights of employees transferring
from the Illinois Health Information Exchange Authority
under paragraph (10.5) shall not be affected by such
transfer except that, notwithstanding any other State law
to the contrary, those employees shall maintain their
seniority and their positions shall convert to titles of

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comparable organizational level under the Personnel Code
and become subject to the Personnel Code. Other than the
changes described in this paragraph, the rights of
employees, the State of Illinois, and State agencies under
the Personnel Code or under any pension, retirement, or
annuity plan shall not be affected by this amendatory Act
of the 101st General Assembly. Transferring personnel
shall continue their service within the Office.
(11) The Office shall consult and coordinate with the
Department of Public Health to further the Office's
collection of health information from health care
providers for public health purposes. The collection of
public health information shall include identifiable
information for use by the Office or other State agencies
to comply with State and federal laws. Any identifiable
information so collected shall be privileged and
confidential in accordance with Sections 8-2101, 8-2102,
8-2103, 8-2104, and 8-2105 of the Code of Civil Procedure.
(12) All identified or deidentified health information
in the form of health data or medical records contained
in, stored in, submitted to, transferred by, or released
from the Illinois Health Information Exchange, and
identified or deidentified health information in the form
of health data and medical records of the Illinois Health
Information Exchange in the possession of the Illinois
Health Information Exchange Office due to its

SB0238 - 292 - LRB103 24882 DTM 51215 b
administration of the Illinois Health Information
Exchange, shall be exempt from inspection and copying
under the Freedom of Information Act. The terms
"identified" and "deidentified" shall be given the same
meaning as in the Health Insurance Portability and
Accountability Act of 1996, Public Law 104-191, or any
subsequent amendments thereto, and any regulations
promulgated thereunder.
(13) To address gaps in the adoption of, workforce
preparation for, and exchange of electronic health records
that result in regional and socioeconomic disparities in
the delivery of care, the Office may evaluate such gaps
and provide resources as available, giving priority to
healthcare providers serving a significant percentage of
Medicaid or uninsured patients and in medically
underserved or rural areas.
(14) The Office shall perform its duties under this
Act in consultation with the Office of the Governor and
with the Departments of Public Health, Insurance, and
Human Services.
(Source: P.A. 100-391, eff. 8-25-17; 101-649, eff. 7-7-20.)
Section 60. The Illinois Global Partnership Act is amended
by changing Section 20 as follows:
(20 ILCS 3948/20)

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Sec. 20. Board of directors. IGP shall be governed by a
board of directors. The IGP board of directors shall consist
of 14 members. Five of the members shall be voting members
appointed by the Governor with the advice and consent of the
Senate. The Speaker and Minority Leader of the House of
Representatives, the President and Minority Leader of the
Senate, the Lieutenant Governor, the Director of Agriculture,
the Director of Commerce and Economic Opportunity, the
Chairperson of the Illinois Arts Council, and the Director of
the Illinois Finance Authority, or the designee of each, shall
be non-voting ex officio members.
Of the members appointed by the Governor, one member must
have a background in agriculture, one member must have a
background in manufacturing, and one member must have a
background in international business relations.
Of the initial members appointed by the Governor, 3
members shall serve 4-year terms and 2 members shall serve
2-year terms as designated by the Governor. Thereafter,
members appointed by the Governor shall serve 4-year terms. A
vacancy among members appointed by the Governor shall be
filled by appointment by the Governor for the remainder of the
vacated term.
Members of the board shall receive no compensation but
shall be reimbursed for expenses incurred in the performance
of their duties.
The Governor shall designate the chairman of the board

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until a successor is designated. The board shall meet at the
call of the chair.
No less than 90 days after a majority of the members of the
board of directors of the IGP is appointed by the Governor, the
board shall develop a policy adopted by resolution of the
board stating the board's plan for the use of services
provided by businesses owned by minorities, women, veterans,
and persons with disabilities, as defined under the Business
Enterprise for Minorities, Women, Veterans, and Persons with
Disabilities Act. The board shall provide a copy of this
resolution to the Governor and the General Assembly upon its
adoption.
On December 31 of each year, the board shall report to the
General Assembly and the Governor regarding the use of
services provided by businesses owned by minorities, women,
veterans, and persons with disabilities, as defined under the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 61. The Illinois Workforce Innovation Board Act is
amended by changing Section 4.5 as follows:
(20 ILCS 3975/4.5)
Sec. 4.5. Duties.
(a) The Board must perform all the functions of a state

SB0238 - 295 - LRB103 24882 DTM 51215 b
workforce innovation board under the federal Workforce
Innovation and Opportunity Act, any amendments to that Act,
and any other applicable federal statutes. The Board must also
perform all other functions that are not inconsistent with the
federal Workforce Innovation and Opportunity Act or this Act
and that are assumed by the Board under its bylaws or assigned
to it by the Governor.
(b) The Board must cooperate with the General Assembly and
make recommendations to the Governor and the General Assembly
concerning legislation necessary to improve upon statewide and
local workforce development systems in order to increase
occupational skill attainment, employment, retention, or
earnings of participants and thereby improve the quality of
the workforce, reduce welfare dependency, and enhance the
productivity and competitiveness of the State. The Board must
annually submit a report to the General Assembly on the
progress of the State in achieving state performance measures
under the federal Workforce Innovation and Opportunity Act,
including information on the levels of performance achieved by
the State with respect to the core indicators of performance
and the customer satisfaction indicator under that Act. The
report must include any other items that the Governor may be
required to report to the Secretary of the United States
Department of Labor.
(b-5) The Board shall implement a method for measuring the
progress of the State's workforce development system by using

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benchmarks specified in the federal Workforce Innovation and
Opportunity Act.
The Board shall identify the most significant early
indicators for each benchmark, establish a mechanism to
collect data and track the benchmarks on an annual basis, and
then use the results to set goals for each benchmark, to inform
planning, and to ensure the effective use of State resources.
(c) Nothing in this Act shall be construed to require or
allow the Board to assume or supersede the statutory authority
granted to, or impose any duties or requirements on, the State
Board of Education, the Board of Higher Education, the
Illinois Community College Board, any State agencies created
under the Civil Administrative Code of Illinois, or any local
education agencies.
(d) No actions taken by the Illinois Human Resource
Investment Council before the effective date of this
amendatory Act of the 92nd General Assembly and no rights,
powers, duties, or obligations from those actions are impaired
solely by this amendatory Act of the 92nd General Assembly.
All actions taken by the Illinois Human Resource Investment
Council before the effective date of this amendatory Act of
the 92nd General Assembly are ratified and validated.
(e) Upon the effective date of this amendatory Act of the
101st General Assembly, the Board shall conduct a feasibility
study regarding the consolidation of all workforce development
programs funded by the federal Workforce Innovation and

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Opportunity Act and conducted by the State of Illinois into
one solitary agency to create greater access to job training
for underserved populations. The Board shall utilize resources
currently made available to them, including, but not limited
to, partnering with institutions of higher education and those
agencies currently charged with overseeing or administering
workforce programs. The feasibility study shall:
(1) assess the impact of consolidation on access for
participants, including minority persons as defined in
Section 2 of the Business Enterprise for Minorities,
Women, Veterans, and Persons with Disabilities Act,
persons with limited English proficiency, persons with
disabilities, and youth, and how consolidation would
increase equitable access to workforce resources;
(2) assess the cost of consolidation and estimate any
long-term savings anticipated from the action;
(3) assess the impact of consolidation on agencies in
which the programs currently reside, including, but not
limited to, the Department of Commerce and Economic
Opportunity, the Department of Employment Security, the
Department of Human Services, the Community College Board,
the Board of Higher Education, the Department of
Corrections, the Department on Aging, the Department of
Veterans' Affairs, and the Department of Children and
Family Services;
(4) assess the impact of consolidation on State

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government employees and union contracts;
(5) consider if the consolidation will provide avenues
to maximize federal funding;
(6) provide recommendations for the future structure
of workforce development programs, including a proposed
timeline for implementation;
(7) provide direction for implementation by July 1,
2022 with regard to recommendations that do not require
legislative change;
(8) if legislative change is necessary, include
legislative language for consideration by the 102nd
General Assembly.
The Board shall submit its recommendations the Governor
and the General Assembly by May 1, 2021.
(Source: P.A. 100-477, eff. 9-8-17; 101-654, eff. 3-8-21.)
Section 65. The Illinois State Auditing Act is amended by
changing Section 2-16 as follows:
(30 ILCS 5/2-16)
Sec. 2-16. Contract aspirational goals. The Auditor
General shall establish aspirational goals for contract awards
substantially in accordance with the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act, unless otherwise governed by other law. The Auditor
General shall not be subject to the jurisdiction of the

SB0238 - 299 - LRB103 24882 DTM 51215 b
Business Enterprise Council established under the Business
Enterprise for Minorities, Women, Veterans, and Persons with
Disabilities Act with regard to steps taken to achieve
aspirational goals. The Auditor General shall annually post
the Office's utilization of businesses owned by minorities,
women, veterans, and persons with disabilities during the
preceding fiscal year on the Office's Internet websites.
(Source: P.A. 100-801, eff. 8-10-18; 101-81, eff. 7-12-19.)
Section 70. The State Finance Act is amended by changing
Section 45 as follows:
(30 ILCS 105/45)
Sec. 45. Award of capital funds. Each award by grant or
loan of State funds of $250,000 or more for capital
construction costs or professional services is conditioned
upon the recipient's written certification that the recipient
shall comply with the business enterprise program practices
for minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities of the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act (30 ILCS 575/) and
the equal employment practices of Section 2-105 of the
Illinois Human Rights Act (775 ILCS 5/2-105). This Section,
however, does not apply to any grant or loan (i) for which a
grant or loan agreement was executed before the effective date

SB0238 - 300 - LRB103 24882 DTM 51215 b
of this amendatory Act of the 96th General Assembly, (ii) for
which prior-incurred costs are being reimbursed, or (iii) for
a federally funded program under which the requirement of this
Section would contravene federal law. Each recipient shall
submit the written certification and business enterprise
program plan for minority-owned businesses, women-owned
businesses, veteran-owned businesses, and businesses owned by
persons with disabilities before signing the relevant grant or
loan agreement. Each grant or loan agreement shall include a
provision that the grant or loan recipient agrees to comply
with the provisions of the Business Enterprise for Minorities,
Women, Veterans, and Persons with Disabilities Act (30 ILCS
575/) and the equal employment practices of Section 2-105 of
the Illinois Human Rights Act (775 ILCS 5/2-105).
Each business enterprise program plan shall apply only to
the State-funded portion of the relevant capital project and
must be in compliance with all certification and other
requirements of the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 75. The General Obligation Bond Act is amended by
changing Sections 8 and 15.5 as follows:
(30 ILCS 330/8) (from Ch. 127, par. 658)
Sec. 8. Bond sale expenses.

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(a) An amount not to exceed 0.5 percent of the principal
amount of the proceeds of sale of each bond sale is authorized
to be used to pay the reasonable costs of issuance and sale,
including, without limitation, underwriter's discounts and
fees, but excluding bond insurance, of State of Illinois
general obligation bonds authorized and sold pursuant to this
Act, provided that no salaries of State employees or other
State office operating expenses shall be paid out of
non-appropriated proceeds, provided further that the percent
shall be 1.0% for each sale of "Build America Bonds" or
"Qualified School Construction Bonds" as defined in
subsections (d) and (e) of Section 9, respectively. The
Governor's Office of Management and Budget shall compile a
summary of all costs of issuance on each sale (including both
costs paid out of proceeds and those paid out of appropriated
funds) and post that summary on its web site within 20 business
days after the issuance of the Bonds. The summary shall
include, as applicable, the respective percentages of
participation and compensation of each underwriter that is a
member of the underwriting syndicate, legal counsel, financial
advisors, and other professionals for the bond issue and an
identification of all costs of issuance paid to minority-owned
businesses, women-owned businesses, veteran-owned businesses,
and businesses owned by persons with disabilities. The terms
"minority-owned businesses", "women-owned businesses",
"veteran-owned businesses", and "business owned by a person

SB0238 - 302 - LRB103 24882 DTM 51215 b
with a disability" have the meanings given to those terms in
the Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act. That posting shall be
maintained on the web site for a period of at least 30 days. In
addition, the Governor's Office of Management and Budget shall
provide a written copy of each summary of costs to the Speaker
and Minority Leader of the House of Representatives, the
President and Minority Leader of the Senate, and the
Commission on Government Forecasting and Accountability within
20 business days after each issuance of the Bonds. In
addition, the Governor's Office of Management and Budget shall
provide copies of all contracts under which any costs of
issuance are paid or to be paid to the Commission on Government
Forecasting and Accountability within 20 business days after
the issuance of Bonds for which those costs are paid or to be
paid. Instead of filing a second or subsequent copy of the same
contract, the Governor's Office of Management and Budget may
file a statement that specified costs are paid under specified
contracts filed earlier with the Commission.
(b) The Director of the Governor's Office of Management
and Budget shall not, in connection with the issuance of
Bonds, contract with any underwriter, financial advisor, or
attorney unless that underwriter, financial advisor, or
attorney certifies that the underwriter, financial advisor, or
attorney has not and will not pay a contingent fee, whether
directly or indirectly, to a third party for having promoted

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the selection of the underwriter, financial advisor, or
attorney for that contract. In the event that the Governor's
Office of Management and Budget determines that an
underwriter, financial advisor, or attorney has filed a false
certification with respect to the payment of contingent fees,
the Governor's Office of Management and Budget shall not
contract with that underwriter, financial advisor, or
attorney, or with any firm employing any person who signed
false certifications, for a period of 2 calendar years,
beginning with the date the determination is made. The
validity of Bonds issued under such circumstances of violation
pursuant to this Section shall not be affected.
(Source: P.A. 100-391, eff. 8-25-17.)
(30 ILCS 330/15.5)
Sec. 15.5. Compliance with the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act. Notwithstanding any other provision of law, the
Governor's Office of Management and Budget shall comply with
the Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 80. The Build Illinois Bond Act is amended by
changing Sections 5 and 8.3 as follows:

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(30 ILCS 425/5) (from Ch. 127, par. 2805)
Sec. 5. Bond sale expenses.
(a) An amount not to exceed 0.5% of the principal amount of
the proceeds of the sale of each bond sale is authorized to be
used to pay reasonable costs of each issuance and sale of Bonds
authorized and sold pursuant to this Act, including, without
limitation, underwriter's discounts and fees, but excluding
bond insurance, advertising, printing, bond rating, travel of
outside vendors, security, delivery, legal and financial
advisory services, initial fees of trustees, registrars,
paying agents and other fiduciaries, initial costs of credit
or liquidity enhancement arrangements, initial fees of
indexing and remarketing agents, and initial costs of interest
rate swaps, guarantees or arrangements to limit interest rate
risk, as determined in the related Bond Sale Order, from the
proceeds of each Bond sale, provided that no salaries of State
employees or other State office operating expenses shall be
paid out of non-appropriated proceeds, and provided further
that the percent shall be 1.0% for each sale of "Build America
Bonds" as defined in subsection (c) of Section 6. The
Governor's Office of Management and Budget shall compile a
summary of all costs of issuance on each sale (including both
costs paid out of proceeds and those paid out of appropriated
funds) and post that summary on its web site within 20 business
days after the issuance of the bonds. That posting shall be
maintained on the web site for a period of at least 30 days. In

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addition, the Governor's Office of Management and Budget shall
provide a written copy of each summary of costs to the Speaker
and Minority Leader of the House of Representatives, the
President and Minority Leader of the Senate, and the
Commission on Government Forecasting and Accountability within
20 business days after each issuance of the bonds. This
summary shall include, as applicable, the respective
percentage of participation and compensation of each
underwriter that is a member of the underwriting syndicate,
legal counsel, financial advisors, and other professionals for
the Bond issue, and an identification of all costs of issuance
paid to minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities. The terms "minority-owned businesses",
"women-owned businesses", "veteran-owned businesses", and
"business owned by a person with a disability" have the
meanings given to those terms in the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act. In addition, the Governor's Office of Management and
Budget shall provide copies of all contracts under which any
costs of issuance are paid or to be paid to the Commission on
Government Forecasting and Accountability within 20 business
days after the issuance of Bonds for which those costs are paid
or to be paid. Instead of filing a second or subsequent copy of
the same contract, the Governor's Office of Management and
Budget may file a statement that specified costs are paid

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under specified contracts filed earlier with the Commission.
(b) The Director of the Governor's Office of Management
and Budget shall not, in connection with the issuance of
Bonds, contract with any underwriter, financial advisor, or
attorney unless that underwriter, financial advisor, or
attorney certifies that the underwriter, financial advisor, or
attorney has not and will not pay a contingent fee, whether
directly or indirectly, to any third party for having promoted
the selection of the underwriter, financial advisor, or
attorney for that contract. In the event that the Governor's
Office of Management and Budget determines that an
underwriter, financial advisor, or attorney has filed a false
certification with respect to the payment of contingent fees,
the Governor's Office of Management and Budget shall not
contract with that underwriter, financial advisor, or
attorney, or with any firm employing any person who signed
false certifications, for a period of 2 calendar years,
beginning with the date the determination is made. The
validity of Bonds issued under such circumstances of violation
pursuant to this Section shall not be affected.
(Source: P.A. 100-391, eff. 8-25-17.)
(30 ILCS 425/8.3)
Sec. 8.3. Compliance with the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act. Notwithstanding any other provision of law, the

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Governor's Office of Management and Budget shall comply with
the Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 85. The Illinois Procurement Code is amended by
changing Sections 15-25, 20-15, 20-60, 30-30, 45-45, and 45-65
and by adding Section 45-58 as follows:
(30 ILCS 500/15-25)
Sec. 15-25. Bulletin content.
(a) Invitations for bids. Notice of each and every
contract that is offered, including renegotiated contracts and
change orders, shall be published in the Bulletin. The
applicable chief procurement officer may provide by rule an
organized format for the publication of this information, but
in any case it must include at least the date first offered,
the date submission of offers is due, the location that offers
are to be submitted to, the purchasing State agency, the
responsible State purchasing officer, a brief purchase
description, the method of source selection, information of
how to obtain a comprehensive purchase description and any
disclosure and contract forms, and encouragement to potential
contractors to hire qualified veterans, as defined by Section
45-67 of this Code, and qualified Illinois minorities, women,
veterans, persons with disabilities, and residents discharged

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from any Illinois adult correctional center.
(a-5) All businesses listed on the Illinois Unified
Certification Program Disadvantaged Business Enterprise
Directory, the Business Enterprise Program of the Department
of Central Management Services, and any small business
database created pursuant to Section 45-45 of this Code shall
be furnished written instructions and information on how to
register for the Illinois Procurement Bulletin. This
information shall be provided to each business within 30
calendar days after the business's notice of certification or
qualification.
(b) Contracts let. Notice of each and every contract that
is let, including renegotiated contracts and change orders,
shall be issued electronically to those bidders submitting
responses to the solicitations, inclusive of the unsuccessful
bidders, immediately upon contract let. Failure of any chief
procurement officer to give such notice shall result in
tolling the time for filing a bid protest up to 7 calendar
days.
For purposes of this subsection (b), "contracts let" means
a construction agency's act of advertising an invitation for
bids for one or more construction projects.
(b-5) Contracts awarded. Notice of each and every contract
that is awarded, including renegotiated contracts and change
orders, shall be issued electronically to the successful
responsible bidder, offeror, or contractor and published in

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the Bulletin. The applicable chief procurement officer may
provide by rule an organized format for the publication of
this information, but in any case it must include at least all
of the information specified in subsection (a) as well as the
name of the successful responsible bidder, offeror, the
contract price, the number of unsuccessful bidders or offerors
and any other disclosure specified in any Section of this
Code. This notice must be posted in the online electronic
Bulletin prior to execution of the contract.
For purposes of this subsection (b-5), "contract award"
means the determination that a particular bidder or offeror
has been selected from among other bidders or offerors to
receive a contract, subject to the successful completion of
final negotiations. "Contract award" is evidenced by the
posting of a Notice of Award or a Notice of Intent to Award to
the respective volume of the Illinois Procurement Bulletin.
(c) Emergency purchase disclosure. Any chief procurement
officer or State purchasing officer exercising emergency
purchase authority under this Code shall publish a written
description and reasons and the total cost, if known, or an
estimate if unknown and the name of the responsible chief
procurement officer and State purchasing officer, and the
business or person contracted with for all emergency purchases
in the Bulletin. This notice must be posted in the online
electronic Bulletin no later than 5 calendar days after the
contract is awarded. Notice of a hearing to extend an

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emergency contract must be posted in the online electronic
Procurement Bulletin no later than 14 calendar days prior to
the hearing.
(c-5) Business Enterprise Program report. Each purchasing
agency shall, with the assistance of the applicable chief
procurement officer, post in the online electronic Bulletin a
copy of its annual report of utilization of businesses owned
by minorities, women, veterans, and persons with disabilities
as submitted to the Business Enterprise Council for
Minorities, Women, Veterans, and Persons with Disabilities
pursuant to Section 6(c) of the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities Act
within 10 calendar days after its submission of its report to
the Council.
(c-10) Renewals. Notice of each contract renewal shall be
posted in the Bulletin within 14 calendar days of the
determination to execute a renewal of the contract. The notice
shall include at least all of the information required in
subsection (a) or (b), as applicable.
(c-15) Sole source procurements. Before entering into a
sole source contract, a chief procurement officer exercising
sole source procurement authority under this Code shall
publish a written description of intent to enter into a sole
source contract along with a description of the item to be
procured and the intended sole source contractor. This notice
must be posted in the online electronic Procurement Bulletin

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before a sole source contract is awarded and at least 14
calendar days before the hearing required by Section 20-25.
(d) Other required disclosure. The applicable chief
procurement officer shall provide by rule for the organized
publication of all other disclosure required in other Sections
of this Code in a timely manner.
(e) The changes to subsections (b), (c), (c-5), (c-10),
and (c-15) of this Section made by Public Act 96-795 apply to
reports submitted, offers made, and notices on contracts
executed on or after July 1, 2010 (the effective date of Public
Act 96-795).
(f) Each chief procurement officer shall, in consultation
with the agencies under his or her jurisdiction, provide the
Procurement Policy Board with the information and resources
necessary, and in a manner, to effectuate the purpose of
Public Act 96-1444.
(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
100-863, eff. 8-14-18.)
(30 ILCS 500/20-15)
Sec. 20-15. Competitive sealed proposals.
(a) Conditions for use. When provided under this Code or
under rules, or when the purchasing agency determines in
writing that the use of competitive sealed bidding is either
not practicable or not advantageous to the State, a contract
may be entered into by competitive sealed proposals.

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(b) Request for proposals. Proposals shall be solicited
through a request for proposals.
(c) Public notice. Public notice of the request for
proposals shall be published in the Illinois Procurement
Bulletin at least 14 calendar days before the date set in the
invitation for the opening of proposals.
(d) Receipt of proposals. Proposals shall be opened
publicly or via an electronic procurement system in the
presence of one or more witnesses at the time and place
designated in the request for proposals, but proposals shall
be opened in a manner to avoid disclosure of contents to
competing offerors during the process of negotiation. A record
of proposals shall be prepared and shall be open for public
inspection after contract award.
(e) Evaluation factors. The requests for proposals shall
state the relative importance of price and other evaluation
factors. Proposals shall be submitted in 3 parts: the first,
price; the second, commitment to diversity; and the third, all
other items. Each part of all proposals shall be evaluated and
ranked independently of the other parts of all proposals. The
results of the evaluation of all 3 parts shall be used in
ranking of proposals.
(e-5) Method of scoring.
(1) The point scoring methodology for competitive
sealed proposals shall provide points for commitment to
diversity. Those points shall be equivalent to 20% of the

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points assigned to the third part of the proposal, all
other items.
(2) Factors to be considered in the award of points
for the commitment to diversity component shall be set by
rule by the applicable chief procurement officer and may
include, but are not limited to:
(A) whether or how well the offeror, on the
solicitation being evaluated, met the goal of
contracting or subcontracting with businesses owned by
women, minorities, or persons with disabilities;
(B) whether the offeror, on the solicitation being
evaluated, assisted businesses owned by women,
minorities, or persons with disabilities in obtaining
lines of credit, insurance, necessary equipment,
supplies, materials, or related assistance or
services;
(C) the percentage of prior year revenues of the
offeror that involve businesses owned by women,
minorities, or persons with disabilities;
(D) whether the offeror has a written supplier
diversity program, including, but not limited to, use
of diverse vendors in the supply chain and a training
or mentoring program with businesses owned by women,
minorities, or persons with disabilities; and
(E) the percentage of members of the offeror's
governing board, senior executives, and managers who

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are women, minorities, or persons with disabilities.
(3) If any State agency or public institution of
higher education contract is eligible to be paid for or
reimbursed, in whole or in part, with federal-aid funds,
grants, or loans, and the provisions of this subsection
(e-5) would result in the loss of those federal-aid funds,
grants, or loans, then the contract is exempt from the
provisions of this Section in order to remain eligible for
those federal-aid funds, grants, or loans. For the
purposes of this subsection (e-5):
"Manager" means a person who controls or administers
all or part of a company or similar organization.
"Minorities" has the same meaning as "minority person"
under Section 2 of the Business Enterprise for Minorities,
Women, Veterans and Persons with Disabilities Act.
"Persons with disabilities" has the same meaning as
"person with a disability" under Section 2 of the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act.
"Senior executive" means the chief executive officer,
chief operating officer, chief financial officer, or
anyone else in charge of a principal business unit or
function.
"Women" has the same meaning as "woman" under Section
2 of the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act.

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(f) Discussion with responsible offerors and revisions of
offers or proposals. As provided in the request for proposals
and under rules, discussions may be conducted with responsible
offerors who submit offers or proposals determined to be
reasonably susceptible of being selected for award for the
purpose of clarifying and assuring full understanding of and
responsiveness to the solicitation requirements. Those
offerors shall be accorded fair and equal treatment with
respect to any opportunity for discussion and revision of
proposals. Revisions may be permitted after submission and
before award for the purpose of obtaining best and final
offers. In conducting discussions there shall be no disclosure
of any information derived from proposals submitted by
competing offerors. If information is disclosed to any
offeror, it shall be provided to all competing offerors.
(g) Award. Awards shall be made to the responsible offeror
whose proposal is determined in writing to be the most
advantageous to the State, taking into consideration price and
the evaluation factors set forth in the request for proposals.
The contract file shall contain the basis on which the award is
made.
(Source: P.A. 101-657, eff. 7-1-21 (See Section 25 of P.A.
102-29 for effective date of 101-657); 102-29, eff. 6-25-21.)
(30 ILCS 500/20-60)
Sec. 20-60. Duration of contracts.

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(a) Maximum duration. A contract may be entered into for
any period of time deemed to be in the best interests of the
State but not exceeding 10 years inclusive, beginning January
1, 2010, of proposed contract renewals. Third parties may
lease State-owned dark fiber networks for any period of time
deemed to be in the best interest of the State, but not
exceeding 20 years. The length of a lease for real property or
capital improvements shall be in accordance with the
provisions of Section 40-25. The length of energy conservation
program contracts or energy savings contracts or leases shall
be in accordance with the provisions of Section 25-45. A
contract for bond or mortgage insurance awarded by the
Illinois Housing Development Authority, however, may be
entered into for any period of time less than or equal to the
maximum period of time that the subject bond or mortgage may
remain outstanding.
(b) Subject to appropriation. All contracts made or
entered into shall recite that they are subject to termination
and cancellation in any year for which the General Assembly
fails to make an appropriation to make payments under the
terms of the contract.
(c) The chief procurement officer shall file a proposed
extension or renewal of a contract with the Procurement Policy
Board and the Commission on Equity and Inclusion prior to
entering into any extension or renewal if the cost associated
with the extension or renewal exceeds $249,999. The

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Procurement Policy Board or the Commission on Equity and
Inclusion may object to the proposed extension or renewal
within 14 calendar days and require a hearing before the Board
or the Commission on Equity and Inclusion prior to entering
into the extension or renewal. If the Procurement Policy Board
or the Commission on Equity and Inclusion does not object
within 14 calendar days or takes affirmative action to
recommend the extension or renewal, the chief procurement
officer may enter into the extension or renewal of a contract.
This subsection does not apply to any emergency procurement,
any procurement under Article 40, or any procurement exempted
by Section 1-10(b) of this Code. If any State agency contract
is paid for in whole or in part with federal-aid funds, grants,
or loans and the provisions of this subsection would result in
the loss of those federal-aid funds, grants, or loans, then
the contract is exempt from the provisions of this subsection
in order to remain eligible for those federal-aid funds,
grants, or loans, and the State agency shall file notice of
this exemption with the Procurement Policy Board or the
Commission on Equity and Inclusion prior to entering into the
proposed extension or renewal. Nothing in this subsection
permits a chief procurement officer to enter into an extension
or renewal in violation of subsection (a). By August 1 each
year, the Procurement Policy Board and the Commission on
Equity and Inclusion shall each file a report with the General
Assembly identifying for the previous fiscal year (i) the

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proposed extensions or renewals that were filed and whether
such extensions and renewals were objected to and (ii) the
contracts exempt from this subsection.
(d) Notwithstanding the provisions of subsection (a) of
this Section, the Department of Innovation and Technology may
enter into leases for dark fiber networks for any period of
time deemed to be in the best interests of the State but not
exceeding 20 years inclusive. The Department of Innovation and
Technology may lease dark fiber networks from third parties
only for the primary purpose of providing services (i) to the
offices of Governor, Lieutenant Governor, Attorney General,
Secretary of State, Comptroller, or Treasurer and State
agencies, as defined under Section 5-15 of the Civil
Administrative Code of Illinois or (ii) for anchor
institutions, as defined in Section 7 of the Illinois Century
Network Act. Dark fiber network lease contracts shall be
subject to all other provisions of this Code and any
applicable rules or requirements, including, but not limited
to, publication of lease solicitations, use of standard State
contracting terms and conditions, and approval of vendor
certifications and financial disclosures.
(e) As used in this Section, "dark fiber network" means a
network of fiber optic cables laid but currently unused by a
third party that the third party is leasing for use as network
infrastructure.
(f) No vendor shall be eligible for renewal of a contract

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when that vendor has failed to meet the goals agreed to in the
vendor's utilization plan, as defined in Section 2 of the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act, unless the State agency or
public institution of higher education has determined that the
vendor made good faith efforts toward meeting the contract
goals. If the State agency or public institution of higher
education determines that the vendor made good faith efforts,
the agency or public institution of higher education may issue
a waiver after concurrence by the chief procurement officer,
which shall not be unreasonably withheld or impair a State
agency determination to execute the renewal. The form and
content of the waiver shall be prescribed by each chief
procurement officer, but shall not impair a State agency or
public institution of higher education determination to
execute the renewal. The chief procurement officer shall post
the completed form on his or her official website within 5
business days after receipt from the State agency or public
institution of higher education. The chief procurement officer
shall maintain on his or her official website a database of
waivers granted under this Section with respect to contracts
under his or her jurisdiction. The database shall be updated
periodically and shall be searchable by contractor name and by
contracting State agency or public institution of higher
education.
(Source: P.A. 101-81, eff. 7-12-19; 101-657, Article 5,

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Section 5-5, eff. 7-1-21 (See Section 25 of P.A. 102-29 for
effective date of P.A. 101-657, Article 5, Section 5-5);
101-657, Article 40, Section 40-125, eff. 1-1-22; 102-29, eff.
6-25-21; 102-721, eff. 1-1-23.)
(30 ILCS 500/30-30)
Sec. 30-30. Design-bid-build construction.
(a) The provisions of this subsection are operative
through December 31, 2023.
For building construction contracts in excess of $250,000,
separate specifications may be prepared for all equipment,
labor, and materials in connection with the following 5
subdivisions of the work to be performed:
(1) plumbing;
(2) heating, piping, refrigeration, and automatic
temperature control systems, including the testing and
balancing of those systems;
(3) ventilating and distribution systems for
conditioned air, including the testing and balancing of
those systems;
(4) electric wiring; and
(5) general contract work.
The specifications may be so drawn as to permit separate
and independent bidding upon each of the 5 subdivisions of
work. All contracts awarded for any part thereof may award the
5 subdivisions of work separately to responsible and reliable

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persons, firms, or corporations engaged in these classes of
work. The contracts, at the discretion of the construction
agency, may be assigned to the successful bidder on the
general contract work or to the successful bidder on the
subdivision of work designated by the construction agency
before the bidding as the prime subdivision of work, provided
that all payments will be made directly to the contractors for
the 5 subdivisions of work upon compliance with the conditions
of the contract.
Beginning on the effective date of this amendatory Act of
the 101st General Assembly and through December 31, 2023, for
single prime projects: (i) the bid of the successful low
bidder shall identify the name of the subcontractor, if any,
and the bid proposal costs for each of the 5 subdivisions of
work set forth in this Section; (ii) the contract entered into
with the successful bidder shall provide that no identified
subcontractor may be terminated without the written consent of
the Capital Development Board; (iii) the contract shall comply
with the disadvantaged business practices of the Business
Enterprise for Minorities, Women, Veterans, and Persons with
Disabilities Act and the equal employment practices of Section
2-105 of the Illinois Human Rights Act; and (iv) the Capital
Development Board shall submit an annual report to the General
Assembly and Governor on the bidding, award, and performance
of all single prime projects.
For building construction projects with a total

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construction cost valued at $5,000,000 or less, the Capital
Development Board shall not use the single prime procurement
delivery method for more than 50% of the total number of
projects bid for each fiscal year. Any project with a total
construction cost valued greater than $5,000,000 may be bid
using single prime at the discretion of the Executive Director
of the Capital Development Board.
(b) The provisions of this subsection are operative on and
after January 1, 2024. For building construction contracts in
excess of $250,000, separate specifications shall be prepared
for all equipment, labor, and materials in connection with the
following 5 subdivisions of the work to be performed:
(1) plumbing;
(2) heating, piping, refrigeration, and automatic
temperature control systems, including the testing and
balancing of those systems;
(3) ventilating and distribution systems for
conditioned air, including the testing and balancing of
those systems;
(4) electric wiring; and
(5) general contract work.
The specifications must be so drawn as to permit separate
and independent bidding upon each of the 5 subdivisions of
work. All contracts awarded for any part thereof shall award
the 5 subdivisions of work separately to responsible and
reliable persons, firms, or corporations engaged in these

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classes of work. The contracts, at the discretion of the
construction agency, may be assigned to the successful bidder
on the general contract work or to the successful bidder on the
subdivision of work designated by the construction agency
before the bidding as the prime subdivision of work, provided
that all payments will be made directly to the contractors for
the 5 subdivisions of work upon compliance with the conditions
of the contract.
(Source: P.A. 101-369, eff. 12-15-19; 101-645, eff. 6-26-20;
102-671, eff. 11-30-21.)
(30 ILCS 500/45-45)
Sec. 45-45. Small businesses.
(a) Set-asides. Each chief procurement officer has
authority to designate as small business set-asides a fair
proportion of construction, supply, and service contracts for
award to small businesses in Illinois. Advertisements for bids
or offers for those contracts shall specify designation as
small business set-asides. In awarding the contracts, only
bids or offers from qualified small businesses shall be
considered.
(b) Small business. "Small business" means a business that
is independently owned and operated and that is not dominant
in its field of operation. The chief procurement officer shall
establish a detailed definition by rule, using in addition to
the foregoing criteria other criteria, including the number of

SB0238 - 324 - LRB103 24882 DTM 51215 b
employees and the dollar volume of business. When computing
the size status of a potential contractor, annual sales and
receipts of the potential contractor and all of its affiliates
shall be included. The maximum number of employees and the
maximum dollar volume that a small business may have under the
rules promulgated by the chief procurement officer may vary
from industry to industry to the extent necessary to reflect
differing characteristics of those industries, subject to the
following limitations:
(1) No wholesale business is a small business if its
annual sales for its most recently completed fiscal year
exceed $13,000,000.
(2) No retail business or business selling services is
a small business if its annual sales and receipts exceed
$8,000,000.
(3) No manufacturing business is a small business if
it employs more than 250 persons.
(4) No construction business is a small business if
its annual sales and receipts exceed $14,000,000.
(c) Fair proportion. For the purpose of subsection (a),
for State agencies of the executive branch, a fair proportion
of construction contracts shall be no less than 25% nor more
than 40% of the annual total contracts for construction.
(d) Withdrawal of designation. A small business set-aside
designation may be withdrawn by the purchasing agency when
deemed in the best interests of the State. Upon withdrawal,

SB0238 - 325 - LRB103 24882 DTM 51215 b
all bids or offers shall be rejected, and the bidders or
offerors shall be notified of the reason for rejection. The
contract shall then be awarded in accordance with this Code
without the designation of small business set-aside.
(e) Small business specialist. Each chief procurement
officer shall designate one or more individuals to serve as
its small business specialist. The small business specialists
shall collectively work together to accomplish the following
duties:
(1) Compiling and maintaining a comprehensive list of
potential small contractors. In this duty, he or she shall
cooperate with the Federal Small Business Administration
in locating potential sources for various products and
services.
(2) Assisting small businesses in complying with the
procedures for bidding on State contracts.
(3) Examining requests from State agencies for the
purchase of property or services to help determine which
invitations to bid are to be designated small business
set-asides.
(4) Making recommendations to the chief procurement
officer for the simplification of specifications and terms
in order to increase the opportunities for small business
participation.
(5) Assisting in investigations by purchasing agencies
to determine the responsibility of bidders or offerors on

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small business set-asides.
(f) Small business annual report. Each small business
specialist designated under subsection (e) shall annually
before November 1 report in writing to the General Assembly
concerning the awarding of contracts to small businesses. The
report shall include the total value of awards made in the
preceding fiscal year under the designation of small business
set-aside. The report shall also include the total value of
awards made to businesses owned by minorities, women,
veterans, and persons with disabilities, as defined in the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act, in the preceding fiscal year
under the designation of small business set-aside.
The requirement for reporting to the General Assembly
shall be satisfied by filing copies of the report as required
by Section 3.1 of the General Assembly Organization Act.
(Source: P.A. 100-43, eff. 8-9-17; 100-391, eff. 8-25-17;
100-863, eff. 8-14-18.)
(30 ILCS 500/45-58 new)
Sec. 45-58. Penalties for false representation as a
minority, woman, veteran, or person with a disability.
(a) Administrative penalties. The chief procurement
officers appointed under Section 10-20 shall suspend any
person who commits a violation of Section 17-10.3 or
subsection (d) of Section 33E-6 of the Criminal Code of 2012

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relating to the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act from bidding on,
or participating as a contractor, subcontractor, or supplier
in, any State contract or project for a period of not less than
3 years, and shall revoke the certification of being a
minority-owned business, woman-owned business, veteran-owned
business, or business owned by a person with a disability for a
period of not less than 3 years. An additional or subsequent
violation shall extend the periods of suspension and
revocation for a period of not less than 5 years. The
suspension and revocation shall apply to the principals of the
business and any subsequent business formed or financed by, or
affiliated with, those principals.
(b) Reports of violations. Each State agency shall report
any alleged violation of Section 17-10.3 or subsection (d) of
Section 33E-6 of the Criminal Code of 2012 relating to this
Section to the chief procurement officers appointed pursuant
to Section 10-20. The chief procurement officers appointed
pursuant to Section 10-20 shall subsequently report all such
alleged violations to the Attorney General, who shall
determine whether to bring a civil action against any person
for the violation.
(c) List of suspended persons. The chief procurement
officers appointed pursuant to Section 10-20 shall monitor the
status of all reported violations of Section 17-10.3 or
subsection (d) of Section 33E-6 of the Criminal Code of 1961 or

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the Criminal Code of 2012 relating to this Section and shall
maintain and make available to all State agencies a central
listing of all persons that committed violations resulting in
suspension.
(d) Use of suspended persons. During the period of a
person's suspension under subsection (a) of this subsection, a
State agency shall not enter into any contract with that
person or with any contractor using the services of that
person as a subcontractor.
(e) Duty to check list. Each State agency shall check the
central listing provided by the chief procurement officers
appointed pursuant to Section 10-20 under subsection (c) of
this subsection to verify that a person being awarded a
contract by that State agency, or to be used as a subcontractor
or supplier on a contract being awarded by that State agency,
is not under suspension under subsection (a).
(30 ILCS 500/45-65)
Sec. 45-65. Additional preferences. This Code is subject
to applicable provisions of:
(1) the Public Purchases in Other States Act;
(2) the Illinois Mined Coal Act;
(3) the Steel Products Procurement Act;
(4) the Veterans Preference Act;
(5) the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act; and

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(6) the Procurement of Domestic Products Act.
(Source: P.A. 100-391, eff. 8-25-17.)
(30 ILCS 500/45-57 rep.)
Section 90. The Illinois Procurement Code is amended by
repealing Section 45-57.
Section 95. The Design-Build Procurement Act is amended by
changing Sections 5, 15, 30, and 46 as follows:
(30 ILCS 537/5)
(Section scheduled to be repealed on July 1, 2027)
Sec. 5. Legislative policy. It is the intent of the
General Assembly that the Capital Development Board be allowed
to use the design-build delivery method for public projects if
it is shown to be in the State's best interest for that
particular project. It shall be the policy of the Capital
Development Board in the procurement of design-build services
to publicly announce all requirements for design-build
services and to procure these services on the basis of
demonstrated competence and qualifications and with due regard
for the principles of competitive selection.
The Capital Development Board shall, prior to issuing
requests for proposals, promulgate and publish procedures for
the solicitation and award of contracts pursuant to this Act.
The Capital Development Board shall, for each public

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project or projects permitted under this Act, make a written
determination, including a description as to the particular
advantages of the design-build procurement method, that it is
in the best interests of this State to enter into a
design-build contract for the project or projects. In making
that determination, the following factors shall be considered:
(1) The probability that the design-build procurement
method will be in the best interests of the State by
providing a material savings of time or cost over the
design-bid-build or other delivery system.
(2) The type and size of the project and its
suitability to the design-build procurement method.
(3) The ability of the State construction agency to
define and provide comprehensive scope and performance
criteria for the project.
No State construction agency may use a design-build
procurement method unless the agency determines in writing
that the project will comply with the disadvantaged business
and equal employment practices of the State as established in
the Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act and Section 2-105 of the
Illinois Human Rights Act.
The Capital Development Board shall within 15 days after
the initial determination provide an advisory copy to the
Procurement Policy Board and maintain the full record of
determination for 5 years.

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(Source: P.A. 100-391, eff. 8-25-17.)
(30 ILCS 537/15)
(Section scheduled to be repealed on July 1, 2027)
Sec. 15. Solicitation of proposals.
(a) When the State construction agency elects to use the
design-build delivery method, it must issue a notice of intent
to receive requests for proposals for the project at least 14
days before issuing the request for the proposal. The State
construction agency must publish the advance notice in the
official procurement bulletin of the State or the professional
services bulletin of the State construction agency, if any.
The agency is encouraged to use publication of the notice in
related construction industry service publications. A brief
description of the proposed procurement must be included in
the notice. The State construction agency must provide a copy
of the request for proposal to any party requesting a copy.
(b) The request for proposal shall be prepared for each
project and must contain, without limitation, the following
information:
(1) The name of the State construction agency.
(2) A preliminary schedule for the completion of the
contract.
(3) The proposed budget for the project, the source of
funds, and the currently available funds at the time the
request for proposal is submitted.

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(4) Prequalification criteria for design-build
entities wishing to submit proposals. The State
construction agency shall include, at a minimum, its
normal prequalification, licensing, registration, and
other requirements, but nothing contained herein precludes
the use of additional prequalification criteria by the
State construction agency.
(5) Material requirements of the contract, including
but not limited to, the proposed terms and conditions,
required performance and payment bonds, insurance, and the
entity's plan to comply with the utilization goals for
business enterprises established in the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act, and with Section 2-105 of the
Illinois Human Rights Act.
(6) The performance criteria.
(7) The evaluation criteria for each phase of the
solicitation.
(8) The number of entities that will be considered for
the technical and cost evaluation phase.
(c) The State construction agency may include any other
relevant information that it chooses to supply. The
design-build entity shall be entitled to rely upon the
accuracy of this documentation in the development of its
proposal.
(d) The date that proposals are due must be at least 21

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calendar days after the date of the issuance of the request for
proposal. In the event the cost of the project is estimated to
exceed $10 million, then the proposal due date must be at least
28 calendar days after the date of the issuance of the request
for proposal. The State construction agency shall include in
the request for proposal a minimum of 30 days to develop the
Phase II submissions after the selection of entities from the
Phase I evaluation is completed.
(Source: P.A. 100-391, eff. 8-25-17.)
(30 ILCS 537/30)
(Section scheduled to be repealed on July 1, 2027)
Sec. 30. Procedures for Selection.
(a) The State construction agency must use a two-phase
procedure for the selection of the successful design-build
entity. Phase I of the procedure will evaluate and shortlist
the design-build entities based on qualifications, and Phase
II will evaluate the technical and cost proposals.
(b) The State construction agency shall include in the
request for proposal the evaluating factors to be used in
Phase I. These factors are in addition to any prequalification
requirements of design-build entities that the agency has set
forth. Each request for proposal shall establish the relative
importance assigned to each evaluation factor and subfactor,
including any weighting of criteria to be employed by the
State construction agency. The State construction agency must

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maintain a record of the evaluation scoring to be disclosed in
event of a protest regarding the solicitation.
The State construction agency shall include the following
criteria in every Phase I evaluation of design-build entities:
(1) experience of personnel; (2) successful experience with
similar project types; (3) financial capability; (4)
timeliness of past performance; (5) experience with similarly
sized projects; (6) successful reference checks of the firm;
(7) commitment to assign personnel for the duration of the
project and qualifications of the entity's consultants; and
(8) ability or past performance in meeting or exhausting good
faith efforts to meet the utilization goals for business
enterprises established in the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities Act
and with Section 2-105 of the Illinois Human Rights Act. The
State construction agency may include any additional relevant
criteria in Phase I that it deems necessary for a proper
qualification review.
The State construction agency may not consider any
design-build entity for evaluation or award if the entity has
any pecuniary interest in the project or has other
relationships or circumstances, including but not limited to,
long-term leasehold, mutual performance, or development
contracts with the State construction agency, that may give
the design-build entity a financial or tangible advantage over
other design-build entities in the preparation, evaluation, or

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performance of the design-build contract or that create the
appearance of impropriety. No proposal shall be considered
that does not include an entity's plan to comply with the
requirements established in the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act, for both the design and construction areas of
performance, and with Section 2-105 of the Illinois Human
Rights Act.
Upon completion of the qualifications evaluation, the
State construction agency shall create a shortlist of the most
highly qualified design-build entities. The State construction
agency, in its discretion, is not required to shortlist the
maximum number of entities as identified for Phase II
evaluation, provided however, no less than 2 design-build
entities nor more than 6 are selected to submit Phase II
proposals.
The State construction agency shall notify the entities
selected for the shortlist in writing. This notification shall
commence the period for the preparation of the Phase II
technical and cost evaluations. The State construction agency
must allow sufficient time for the shortlist entities to
prepare their Phase II submittals considering the scope and
detail requested by the State agency.
(c) The State construction agency shall include in the
request for proposal the evaluating factors to be used in the
technical and cost submission components of Phase II. Each

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request for proposal shall establish, for both the technical
and cost submission components of Phase II, the relative
importance assigned to each evaluation factor and subfactor,
including any weighting of criteria to be employed by the
State construction agency. The State construction agency must
maintain a record of the evaluation scoring to be disclosed in
event of a protest regarding the solicitation.
The State construction agency shall include the following
criteria in every Phase II technical evaluation of
design-build entities: (1) compliance with objectives of the
project; (2) compliance of proposed services to the request
for proposal requirements; (3) quality of products or
materials proposed; (4) quality of design parameters; (5)
design concepts; (6) innovation in meeting the scope and
performance criteria; and (7) constructability of the proposed
project. The State construction agency may include any
additional relevant technical evaluation factors it deems
necessary for proper selection.
The State construction agency shall include the following
criteria in every Phase II cost evaluation: the total project
cost, the construction costs, and the time of completion. The
State construction agency may include any additional relevant
technical evaluation factors it deems necessary for proper
selection. The total project cost criteria weighing factor
shall be 25%.
The State construction agency shall directly employ or

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retain a licensed design professional to evaluate the
technical and cost submissions to determine if the technical
submissions are in accordance with generally accepted industry
standards.
Upon completion of the technical submissions and cost
submissions evaluation, the State construction agency may
award the design-build contract to the highest overall ranked
entity.
(Source: P.A. 100-391, eff. 8-25-17.)
(30 ILCS 537/46)
(Section scheduled to be repealed on July 1, 2027)
Sec. 46. Reports and evaluation. At the end of every 6
month period following the contract award, and again prior to
final contract payout and closure, a selected design-build
entity shall detail, in a written report submitted to the
State agency, its efforts and success in implementing the
entity's plan to comply with the utilization goals for
business enterprises established in the Business Enterprise
for Minorities, Women, Veterans, and Persons with Disabilities
Act and the provisions of Section 2-105 of the Illinois Human
Rights Act. If the entity's performance in implementing the
plan falls short of the performance measures and outcomes set
forth in the plans submitted by the entity during the proposal
process, the entity shall, in a detailed written report,
inform the General Assembly and the Governor whether and to

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what degree each design-build contract authorized under this
Act promoted the utilization goals for business enterprises
established in the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act and the provisions
of Section 2-105 of the Illinois Human Rights Act.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 96. The Public-Private Partnership for Civic and
Transit Infrastructure Project Act is amended by changing
Section 25-5 as follows:
(30 ILCS 558/25-5)
Sec. 25-5. Public policy and legislative findings.
(a) It is in the best interest of the State of Illinois to
encourage private investment in public transit-oriented
infrastructure projects with broad economic development, civic
and diversity equity, and community impacts, and to encourage
related private development activities that will generate new
State and local revenues to fund such public infrastructure,
as well as to fund other statewide priorities.
(b) Existing methods of procurement and financing of
transit-oriented public infrastructure projects serving the
needs of the public limit the State's ability to access
underutilized private land for such public infrastructure
projects and to encourage private, tax-generating development
on and adjacent to such public infrastructure projects.

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(c) A private entity has proposed a civic and transit
infrastructure project, to be completed in one or more phases,
which presents an opportunity for a prudent State investment
that will develop a major public transit infrastructure asset
that has the potential to connect Metra, the South Shore Line,
Amtrak, the Northern Indiana Commuter Transportation District,
the Chicago Transportation Authority, bus service, and a
central-area circulator transit system while bringing
significant civic, economic, and fiscal benefits to the State.
(d) It is in the best interest of the State to authorize
the public agency to enter into a public-private partnership
with the private entity, whereby the private entity will
develop, finance, construct, operate, and manage the Civic and
Transit Infrastructure Project as necessary public
infrastructure in the State, and for the State to utilize a
portion of future State revenues to ultimately acquire the
civic build as an asset of the State.
(e) The private entity will be accountable to the People
of Illinois through a comprehensive system of oversight,
auditing, and reporting, and shall meet, at a minimum, the
State's utilization goals for business enterprises established
in the Business Enterprise for Minorities, Women, Veterans,
and Persons with Disabilities Act as established for similar
infrastructure projects in the State. The private entity will
establish and manage a comprehensive Targeted Business and
Workforce Participation Program for the Civic and Transit

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Infrastructure Project that establishes definitive goals and
objectives associated with the professional and construction
services, contracts entered into, and hours of the workforce
employed in the development of the Civic and Transit
Infrastructure Project. The Targeted Business and Workforce
Participation Program will emphasize the expansion of business
capacity and workforce opportunity that can be sustained among
minority, women, disabled, and veteran businesses and
individuals that are contracted or employed under the Targeted
Business and Workforce Participation Program developed for the
Civic and Transit Infrastructure Project.
(f) The utilization of a portion of the State's sales tax
to repay the cost of its public-private partnership with the
private entity for the development, financing, construction,
operation, and management of the Civic and Transit
Infrastructure Project is of benefit to the State for the
reasons that the State would not otherwise derive the revenue
from the Civic and Transit Infrastructure Project, or the
private development on and adjacent to the Civic and Transit
Infrastructure Project, without the public-private
partnership, and the State or a political subdivision thereof
will ultimately own the Civic and Transit Infrastructure
Project.
(g) It is found and declared that the implementation of
the Civic and Transit Infrastructure Project through a
public-private partnership as provided under this Act has the

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ability to reduce unemployment in the State, create new jobs,
expand the business and workforce capacity among minority,
woman, disabled and veteran businesses and individuals,
improve mobility and opportunity for the People of the State
of Illinois, and, by the provision of new public
infrastructure and private development, greatly enhance the
overall tax base and strengthen the economy of the State.
(h) In order to provide for flexibility in meeting the
financial, design, engineering, and construction needs of the
State, and its agencies and departments, and in order to
provide continuing and adequate financing for the Civic and
Transit Infrastructure Project on favorable terms, the
delegations of authority to the public agency, the State
Comptroller, the State Treasurer and other officers of the
State that are contained in this Act are necessary and
desirable.
(Source: P.A. 101-10, eff. 6-5-19.)
Section 97. The Illinois Works Jobs Program Act is amended
by changing Sections 20-10 and 20-20 as follows:
(30 ILCS 559/20-10)
Sec. 20-10. Definitions.
"Apprentice" means a participant in an apprenticeship
program approved by and registered with the United States
Department of Labor's Bureau of Apprenticeship and Training.

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"Apprenticeship program" means an apprenticeship and
training program approved by and registered with the United
States Department of Labor's Bureau of Apprenticeship and
Training.
"Bid credit" means a virtual dollar for a contractor or
subcontractor to use toward future bids on contracts with the
State for public works projects.
"Community-based organization" means a nonprofit
organization, including an accredited public college or
university, selected by the Department to participate in the
Illinois Works Preapprenticeship Program. To qualify as a
"community-based organization", the organization must
demonstrate the following:
(1) the ability to effectively serve diverse and
underrepresented populations, including by providing
employment services to such populations;
(2) knowledge of the construction and building trades;
(3) the ability to recruit, prescreen, and provide
preapprenticeship training to prepare workers for
employment in the construction and building trades; and
(4) a plan to provide the following:
(A) preparatory classes;
(B) workplace readiness skills, such as resume
preparation and interviewing techniques;
(C) strategies for overcoming barriers to entry
and completion of an apprenticeship program; and

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(D) any prerequisites for acceptance into an
apprenticeship program.
"Contractor" means a person, corporation, partnership,
limited liability company, or joint venture entering into a
contract to construct a public work.
"Department" means the Department of Commerce and Economic
Opportunity.
"Labor hours" means the total hours for workers who are
receiving an hourly wage and who are directly employed for the
public works project. "Labor hours" includes hours performed
by workers employed by the contractor and subcontractors on
the public works project. "Labor hours" does not include hours
worked by the forepersons, superintendents, owners, and
workers who are not subject to prevailing wage requirements.
"Minorities" means minority persons as defined in the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.
"Public works" means all projects, contracted or funded by
the State or any agency of the State, in whole or in part, from
appropriated capital funds, that constitute public works under
the Prevailing Wage Act.
"Subcontractor" means a person, corporation, partnership,
limited liability company, or joint venture that has
contracted with the contractor to perform all or part of the
work to construct a public work by a contractor.
"Underrepresented populations" means populations

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identified by the Department that historically have had
barriers to entry or advancement in the workforce.
"Underrepresented populations" includes, but is not limited
to, minorities, women, and veterans.
(Source: P.A. 101-31, eff. 6-28-19; 101-601, eff. 12-10-19.)
(30 ILCS 559/20-20)
Sec. 20-20. Illinois Works Apprenticeship Initiative.
(a) The Illinois Works Apprenticeship Initiative is
established and shall be administered by the Department.
(1) Subject to the exceptions set forth in subsection
(b) of this Section, apprentices shall be utilized on all
public works projects estimated to cost $500,000 or more
in accordance with this subsection (a).
(2) For public works projects estimated to cost
$500,000 or more, the goal of the Illinois Works
Apprenticeship Initiative is that apprentices will perform
either 10% of the total labor hours actually worked in
each prevailing wage classification or 10% of the
estimated labor hours in each prevailing wage
classification, whichever is less.
(b) Before or during the term of a contract subject to this
Section, the Department may reduce or waive the goals set
forth in paragraph (2) of subsection (a). Prior to the
Department granting a request for a reduction or waiver, the
Department shall determine, in its discretion, whether to hold

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a public hearing on the request. In determining whether to
hold a public hearing, the Department may consider factors,
including the scale of the project and whether the contractor
or subcontractor seeking the reduction or waiver has
previously requested reductions or waivers on other projects.
The Department may also consult with the Business Enterprise
Council under the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act and the Chief
Procurement Officer of the agency administering the public
works contract. The Department may grant a reduction or waiver
upon a determination that:
(1) the contractor or subcontractor has demonstrated
that insufficient apprentices are available;
(2) the reasonable and necessary requirements of the
contract do not allow the goal to be met;
(3) there is a disproportionately high ratio of
material costs to labor hours that makes meeting the goal
infeasible; or
(4) apprentice labor hour goals conflict with existing
requirements, including federal requirements, in
connection with the public work.
(c) Contractors and subcontractors must submit a
certification to the Department and the agency that is
administering the contract, or the grant agreement funding the
contract, demonstrating that the contractor or subcontractor
has either:

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(1) met the apprentice labor hour goals set forth in
paragraph (2) of subsection (a); or
(2) received a reduction or waiver pursuant to
subsection (b).
It shall be deemed to be a material breach of the contract,
or the grant agreement funding the contract, and entitle the
State to declare a default, terminate the contract or grant
agreement funding it, and exercise those remedies provided for
in the contract, at law, or in equity if the contractor or
subcontractor fails to submit the certification required in
this subsection or submits false or misleading information.
(d) No later than one year after the effective date of this
Act, and by April 1 of every calendar year thereafter, the
Department of Labor shall submit a report to the Illinois
Works Review Panel regarding the use of apprentices under the
Illinois Works Apprenticeship Initiative for public works
projects. To the extent it is available, the report shall
include the following information:
(1) the total number of labor hours on each project
and the percentage of labor hours actually worked by
apprentices on each public works project;
(2) the number of apprentices used in each public
works project, broken down by trade; and
(3) the number and percentage of minorities, women,
and veterans utilized as apprentices on each public works
project.

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(e) The Department shall adopt any rules deemed necessary
to implement the Illinois Works Apprenticeship Initiative. In
order to provide for the expeditious and timely implementation
of this Act, the Department may adopt emergency rules. The
adoption of emergency rules authorized by this subsection is
deemed to be necessary for the public interest, safety, and
welfare.
(f) The Illinois Works Apprenticeship Initiative shall not
interfere with any contracts or grants in existence on the
effective date of this Act.
(g) Notwithstanding any provisions to the contrary in this
Act, any State agency that administers a construction program
for which federal law or regulations establish standards and
procedures for the utilization of apprentices may implement
the Illinois Works Apprenticeship Initiative using the federal
standards and procedures for the establishment of goals and
utilization procedures for the State-funded, as well as the
federally assisted, portions of the program. In such cases,
these goals shall not exceed those established pursuant to the
relevant federal statutes or regulations.
(Source: P.A. 101-31, eff. 6-28-19; 101-601, eff. 12-10-19.)
Section 100. The Project Labor Agreements Act is amended
by changing Sections 25 and 37 as follows:
(30 ILCS 571/25)

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Sec. 25. Contents of agreement. Pursuant to this Act, any
project labor agreement shall:
(a) Set forth effective, immediate, and mutually
binding procedures for resolving jurisdictional labor
disputes and grievances arising before the completion of
work.
(b) Contain guarantees against strikes, lockouts, or
similar actions.
(c) Ensure a reliable source of skilled and
experienced labor.
(d) For minorities and women as defined under the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act, set forth goals for
apprenticeship hours to be performed by minorities and
women and set forth goals for total hours to be performed
by underrepresented minorities and women.
(e) Permit the selection of the lowest qualified
responsible bidder, without regard to union or non-union
status at other construction sites.
(f) Bind all contractors and subcontractors on the
public works project through the inclusion of appropriate
bid specifications in all relevant bid documents.
(g) Include such other terms as the parties deem
appropriate.
(Source: P.A. 100-391, eff. 8-25-17.)

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(30 ILCS 571/37)
Sec. 37. Quarterly report; annual report. A State
department, agency, authority, board, or instrumentality that
has a project labor agreement in connection with a public
works project shall prepare a quarterly report that includes
workforce participation under the agreement by minorities and
women as defined under the Business Enterprise for Minorities,
Women, Veterans, and Persons with Disabilities Act. These
reports shall be submitted to the Illinois Department of
Labor. The Illinois Department of Labor shall submit to the
General Assembly and the Governor an annual report that
details the number of minorities and women employed under all
public labor agreements within the State.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 101. The Commission on Equity and Inclusion Act is
amended by changing Section 40-10 as follows:
(30 ILCS 574/40-10)
Sec. 40-10. Powers and duties. In addition to the other
powers and duties which may be prescribed in this Act or
elsewhere, the Commission shall have the following powers and
duties:
(1) The Commission shall have a role in all State and
university procurement by facilitating and streamlining
communications between the Business Enterprise Council for

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Minorities, Women, Veterans, and Persons with
Disabilities, the purchasing entities, the Chief
Procurement Officers, and others.
(2) The Commission may create a scoring evaluation for
State agency directors, public university presidents and
chancellors, and public community college presidents. The
scoring shall be based on the following 3 principles: (i)
increasing capacity; (ii) growing revenue; and (iii)
enhancing credentials. These principles should be the
foundation of the agency compliance plan required under
Section 6 of the Business Enterprise for Minorities,
Women, Veterans, and Persons with Disabilities Act.
(3) The Commission shall exercise the authority and
duties provided to it under Section 5-7 of the Illinois
Procurement Code.
(4) The Commission, working with State agencies, shall
provide support for diversity in State hiring.
(5) The Commission shall oversee the implementation of
diversity training of the State workforce.
(6) Each January, and as otherwise frequently as may
be deemed necessary and appropriate by the Commission, the
Commission shall propose and submit to the Governor and
the General Assembly legislative changes to increase
inclusion and diversity in State government.
(7) The Commission shall have oversight over the
following entities:

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(A) the Illinois African-American Family
Commission;
(B) the Illinois Latino Family Commission;
(C) the Asian American Family Commission;
(D) the Illinois Muslim American Advisory Council;
(E) the Illinois African-American Fair Contracting
Commission created under Executive Order 2018-07; and
(F) the Business Enterprise Council for
Minorities, Women, Veterans, and Persons with
Disabilities.
(8) The Commission shall adopt any rules necessary for
the implementation and administration of the requirements
of this Act.
(9) The Commission shall exercise the authority and
duties provided to it under Section 45-57 of the Illinois
Procurement Code.
(Source: P.A. 101-657, eff. 1-1-22; 102-29, eff. 6-25-21;
102-671, eff. 11-30-21.)
Section 105. The Business Enterprise for Minorities,
Women, and Persons with Disabilities Act is amended by
changing Sections 0.01, 1, 2, 4, 4f, 5, 6, 6a, 7, 8, 8a, 8b,
8f, 8g, and 8h as follows:
(30 ILCS 575/0.01) (from Ch. 127, par. 132.600)
(Section scheduled to be repealed on June 30, 2024)

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Sec. 0.01. Short title. This Act may be cited as the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act. Any reference in any law,
appropriation, rule, form, or other document to the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act, shall be construed to be references to this
Act.
(Source: P.A. 100-391, eff. 8-25-17.)
(30 ILCS 575/1) (from Ch. 127, par. 132.601)
(Section scheduled to be repealed on June 30, 2024)
Sec. 1. Purpose. The State of Illinois declares that it is
the public policy of the State to promote and encourage the
continuing economic development of minority-owned, and
women-owned , veteran-owned, persons with disability-owned and
operated businesses and that minority-owned, and women-owned,
veteran-owned, and persons with disability-owned and operated
businesses participate in the State's procurement process as
both prime and subcontractors. The State of Illinois has
observed that the goals established in this Act have served to
increase the participation of minority and women businesses in
contracts awarded by the State. The State hereby declares that
the adoption of this amendatory Act of 1989 shall serve the
State's continuing interest in promoting open access in the
awarding of State contracts to disadvantaged small business
enterprises victimized by discriminatory practices.

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Furthermore, after reviewing evidence of the high level of
attainment of the 10% minimum goals established under this
Act, and, after considering evidence that minority and women
businesses, as established in 1982, constituted and continue
to constitute more than 10% of the businesses operating in
this State, the State declares that the continuation of such
10% minimum goals under this amendatory Act of 1989 is a
narrowly tailored means of promoting open access and thus the
further growth and development of minority and women
businesses.
The State of Illinois further declares that it is the
public policy of this State to promote and encourage the
continuous economic development of businesses owned by persons
with disabilities and a 2% contracting goal is a narrowly
tailored means of promoting open access and thus the further
growth and development of those businesses.
(Source: P.A. 100-391, eff. 8-25-17.)
(30 ILCS 575/2)
(Section scheduled to be repealed on June 30, 2024)
Sec. 2. Definitions.
(A) For the purpose of this Act, the following terms shall
have the following definitions:
(1) "Minority person" shall mean a person who is a
citizen or lawful permanent resident of the United States
and who is any of the following:

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(a) American Indian or Alaska Native (a person
having origins in any of the original peoples of North
and South America, including Central America, and who
maintains tribal affiliation or community attachment).
(b) Asian (a person having origins in any of the
original peoples of the Far East, Southeast Asia, or
the Indian subcontinent, including, but not limited
to, Cambodia, China, India, Japan, Korea, Malaysia,
Pakistan, the Philippine Islands, Thailand, and
Vietnam).
(c) Black or African American (a person having
origins in any of the black racial groups of Africa).
(d) Hispanic or Latino (a person of Cuban,
Mexican, Puerto Rican, South or Central American, or
other Spanish culture or origin, regardless of race).
(e) Native Hawaiian or Other Pacific Islander (a
person having origins in any of the original peoples
of Hawaii, Guam, Samoa, or other Pacific Islands).
(2) "Woman" shall mean a person who is a citizen or
lawful permanent resident of the United States and who is
of the female gender.
(2.05) "Person with a disability" means a person who
is a citizen or lawful resident of the United States and is
a person qualifying as a person with a disability under
subdivision (2.1) of this subsection (A).
(2.1) "Person with a disability" means a person with a

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severe physical or mental disability that:
(a) results from:
amputation,
arthritis,
autism,
blindness,
burn injury,
cancer,
cerebral palsy,
Crohn's disease,
cystic fibrosis,
deafness,
head injury,
heart disease,
hemiplegia,
hemophilia,
respiratory or pulmonary dysfunction,
an intellectual disability,
mental illness,
multiple sclerosis,
muscular dystrophy,
musculoskeletal disorders,
neurological disorders, including stroke and
epilepsy,
paraplegia,
quadriplegia and other spinal cord conditions,

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sickle cell anemia,
ulcerative colitis,
specific learning disabilities, or
end stage renal failure disease; and
(b) substantially limits one or more of the
person's major life activities.
Another disability or combination of disabilities may
also be considered as a severe disability for the purposes
of item (a) of this subdivision (2.1) if it is determined
by an evaluation of rehabilitation potential to cause a
comparable degree of substantial functional limitation
similar to the specific list of disabilities listed in
item (a) of this subdivision (2.1).
(2.15) "Veteran" means a person who (i) has been a
member of the armed forces of the United States or, while a
citizen of the United States, was a member of the armed
forces of allies of the United States in time of
hostilities with a foreign country and (ii) has served
under one or more of the following conditions: (a) the
veteran served a total of at least 6 months; (b) the
veteran served for the duration of hostilities regardless
of the length of the engagement; (c) the veteran was
discharged on the basis of hardship; or (d) the veteran
was released from active duty because of a service
connected disability and was discharged under honorable
conditions.

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(3) "Minority-owned business" means a business which
is at least 51% owned by one or more minority persons, or
in the case of a corporation, at least 51% of the stock in
which is owned by one or more minority persons; and the
management and daily business operations of which are
controlled by one or more of the minority individuals who
own it.
(4) "Women-owned business" means a business which is
at least 51% owned by one or more women, or, in the case of
a corporation, at least 51% of the stock in which is owned
by one or more women; and the management and daily
business operations of which are controlled by one or more
of the women who own it.
(4.1) "Business owned by a person with a disability"
means a business that is at least 51% owned by one or more
persons with a disability and the management and daily
business operations of which are controlled by one or more
of the persons with disabilities who own it. A
not-for-profit agency for persons with disabilities that
is exempt from taxation under Section 501 of the Internal
Revenue Code of 1986 is also considered a "business owned
by a person with a disability".
(4.1-5) "Veteran-owned business" means a business
which is at least 51% owned by one or more veterans, or, in
the case of a corporation, at least 51% of the stock in
which is owned by one or more veterans; and the management

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and daily business operations of which are controlled by
one or more of the veterans who own it.
(4.2) "Council" means the Business Enterprise Council
for Minorities, Women, Veterans, and Persons with
Disabilities created under Section 5 of this Act.
(4.3) "Commission" means, unless the context clearly
indicates otherwise, the Commission on Equity and
Inclusion created under the Commission on Equity and
Inclusion Act.
(5) "State contracts" means all contracts entered into
by the State, any agency or department thereof, or any
public institution of higher education, including
community college districts, regardless of the source of
the funds with which the contracts are paid, which are not
subject to federal reimbursement. "State contracts" does
not include contracts awarded by a retirement system,
pension fund, or investment board subject to Section
1-109.1 of the Illinois Pension Code. This definition
shall control over any existing definition under this Act
or applicable administrative rule.
"State construction contracts" means all State
contracts entered into by a State agency or public
institution of higher education for the repair,
remodeling, renovation or construction of a building or
structure, or for the construction or maintenance of a
highway defined in Article 2 of the Illinois Highway Code.

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(6) "State agencies" shall mean all departments,
officers, boards, commissions, institutions and bodies
politic and corporate of the State, but does not include
the Board of Trustees of the University of Illinois, the
Board of Trustees of Southern Illinois University, the
Board of Trustees of Chicago State University, the Board
of Trustees of Eastern Illinois University, the Board of
Trustees of Governors State University, the Board of
Trustees of Illinois State University, the Board of
Trustees of Northeastern Illinois University, the Board of
Trustees of Northern Illinois University, the Board of
Trustees of Western Illinois University, municipalities or
other local governmental units, or other State
constitutional officers.
(7) "Public institutions of higher education" means
the University of Illinois, Southern Illinois University,
Chicago State University, Eastern Illinois University,
Governors State University, Illinois State University,
Northeastern Illinois University, Northern Illinois
University, Western Illinois University, the public
community colleges of the State, and any other public
universities, colleges, and community colleges now or
hereafter established or authorized by the General
Assembly.
(8) "Certification" means a determination made by the
Council or by one delegated authority from the Council to

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make certifications, or by a State agency with statutory
authority to make such a certification, that a business
entity is a business owned by a minority, woman, veteran,
or person with a disability for whatever purpose. If a
business qualifies for more than one certification, it
shall be certified for all designations for which it
qualifies. A business owned and controlled by women shall
be certified as a "woman-owned business". A business owned
and controlled by women who are also minorities shall be
certified as both a "women-owned business" and a
"minority-owned business".
(9) "Control" means the exclusive or ultimate and sole
control of the business including, but not limited to,
capital investment and all other financial matters,
property, acquisitions, contract negotiations, legal
matters, officer-director-employee selection and
comprehensive hiring, operating responsibilities,
cost-control matters, income and dividend matters,
financial transactions and rights of other shareholders or
joint partners. Control shall be real, substantial and
continuing, not pro forma. Control shall include the power
to direct or cause the direction of the management and
policies of the business and to make the day-to-day as
well as major decisions in matters of policy, management
and operations. Control shall be exemplified by possessing
the requisite knowledge and expertise to run the

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particular business and control shall not include simple
majority or absentee ownership.
(10) "Business" means a business that has annual gross
sales of less than $75,000,000 as evidenced by the federal
income tax return of the business. A firm with gross sales
in excess of this cap may apply to the Council for
certification for a particular contract if the firm can
demonstrate that the contract would have significant
impact on businesses owned by minorities, women, veterans,
or persons with disabilities as suppliers or
subcontractors or in employment of minorities, women,
veterans, or persons with disabilities.
(11) "Utilization plan" means a form and additional
documentations included in all bids or proposals that
demonstrates a vendor's proposed utilization of vendors
certified by the Business Enterprise Program to meet the
targeted goal. The utilization plan shall demonstrate that
the Vendor has either: (1) met the entire contract goal or
(2) requested a full or partial waiver and made good faith
efforts towards meeting the goal.
(12) "Business Enterprise Program" means the Business
Enterprise Program of the Commission on Equity and
Inclusion.
(13) "Armed forces of the United States" means the
United States Army, Navy, Air Force, Marine Corps, Coast
Guard, or service in active duty as defined under 38

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U.S.C. Section 101. Service in the Merchant Marine that
constitutes active duty under Section 401 of federal
Public Act 95-202 shall also be considered service in the
armed forces for purposes of this Section.
(14) "Time of hostilities with a foreign country"
means any period of time in the past, present, or future
during which a declaration of war by the United States
Congress has been or is in effect or during which an
emergency condition has been or is in effect that is
recognized by the issuance of a Presidential proclamation
or a Presidential executive order and in which the armed
forces expeditionary medal or other campaign service
medals are awarded according to Presidential executive
order.
(B) When a business is owned at least 51% by any
combination of minority persons, women, veterans, or persons
with disabilities, even though none of the 3 classes alone
holds at least a 51% interest, the ownership requirement for
purposes of this Act is considered to be met. The
certification category for the business is that of the class
holding the largest ownership interest in the business. If 2
or more classes have equal ownership interests, the
certification category shall be determined by the business.
(Source: P.A. 101-601, eff. 1-1-20; 101-657, eff. 1-1-22;
102-29, eff. 6-25-21.)

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(30 ILCS 575/4) (from Ch. 127, par. 132.604)
(Section scheduled to be repealed on June 30, 2024)
Sec. 4. Award of State contracts.
(a) Except as provided in subsection (b), not less than
30% of the total dollar amount of State contracts, as defined
by the Secretary of the Council and approved by the Council,
shall be established as an aspirational goal to be awarded to
businesses owned by minorities, women, veterans, and persons
with disabilities; provided, however, that of the total amount
of all State contracts awarded to businesses owned by
minorities, women, and persons with disabilities pursuant to
this Section, contracts representing at least 16% shall be
awarded to businesses owned by minorities, contracts
representing at least 10% shall be awarded to women-owned
businesses, and contracts representing at least 4% shall be
awarded to businesses owned by persons with disabilities.
(a-5) In addition to the aspirational goals in awarding
State contracts set under subsection (a), the Commission shall
by rule further establish targeted efforts to encourage the
participation of businesses owned by minorities, women, and
persons with disabilities on State contracts. Such efforts
shall include, but not be limited to, further concerted
outreach efforts to businesses owned by minorities, women, and
persons with disabilities.
The above percentage relates to the total dollar amount of
State contracts during each State fiscal year, calculated by

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examining independently each type of contract for each agency
or public institutions of higher education which lets such
contracts. Only that percentage of arrangements which
represents the participation of businesses owned by
minorities, women, veterans, and persons with disabilities on
such contracts shall be included. State contracts subject to
the requirements of this Act shall include the requirement
that only expenditures to businesses owned by minorities,
women, veterans, and persons with disabilities that perform a
commercially useful function may be counted toward the goals
set forth by this Act. Contracts shall include a definition of
"commercially useful function" that is consistent with 49 CFR
26.55(c).
(b) Not less than 20% of the total dollar amount of State
construction contracts is established as an aspirational goal
to be awarded to businesses owned by minorities, women,
veterans, and persons with disabilities; provided that,
contracts representing at least 11% of the total dollar amount
of State construction contracts shall be awarded to businesses
owned by minorities; contracts representing at least 7% of the
total dollar amount of State construction contracts shall be
awarded to women-owned businesses; and contracts representing
at least 2% of the total dollar amount of State construction
contracts shall be awarded to businesses owned by persons with
disabilities.
(c) (Blank).

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(c-5) All goals established under this Section shall be
contingent upon the results of the most recent disparity study
conducted by the State.
(d) Within one year after April 28, 2009 (the effective
date of Public Act 96-8), the Department of Central Management
Services shall conduct a social scientific study that measures
the impact of discrimination on minority and women business
development in Illinois. Within 18 months after April 28, 2009
(the effective date of Public Act 96-8), the Department shall
issue a report of its findings and any recommendations on
whether to adjust the goals for minority and women
participation established in this Act. Copies of this report
and the social scientific study shall be filed with the
Governor and the General Assembly.
By December 1, 2020, the Department of Central Management
Services shall conduct a new social scientific study that
measures the impact of discrimination on minority and women
business development in Illinois. By June 1, 2022, the
Department shall issue a report of its findings and any
recommendations on whether to adjust the goals for minority
and women participation established in this Act. Copies of
this report and the social scientific study shall be filed
with the Governor and the General Assembly. By December 1,
2022, the Commission on Equity and Inclusion Business
Enterprise Program shall develop a model for social scientific
disparity study sourcing for local governmental units to adapt

SB0238 - 366 - LRB103 24882 DTM 51215 b
and implement to address regional disparities in public
procurement.
(e) All State contract solicitations that include Business
Enterprise Program participation goals shall require bidders
or offerors to include utilization plans. Utilization plans
are due at the time of bid or offer submission. Failure to
complete and include a utilization plan, including
documentation demonstrating good faith efforts when requesting
a waiver, shall render the bid or offer non-responsive.
Except as permitted under this Act or as otherwise
mandated by federal law or regulation, in response those who
submit bids or proposals for State contracts subject to the
provisions of this Act, whose bids or proposals are successful
but include a utilization plan that fails to demonstrate good
faith efforts to meet the goals set forth in the solicitation
of that deficiency and may allow the bidder or offeror a period
not to exceed 10 calendar days from the date of notification to
cure that deficiency in the bid or proposal. The deficiency in
the bid or proposal may only be cured by contracting with
additional subcontractors who are certified by the Business
Enterprise Program at the time of bid submission. Any increase
in cost to a contract for the addition of a subcontractor to
cure a bid's deficiency or to ensure diversity participation
on the contract shall not affect the bid price, shall not be
used in the request for an exemption in this Act, and in no
case shall an identified subcontractor with a certification

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made pursuant to this Act be terminated from the contract
without the written consent of the State agency or public
institution of higher education entering into the contract.
Submission of a blank utilization plan renders a bid or offer
non-responsive and is not curable. The Commission on Equity
and Inclusion shall be notified of all bids or offers that fail
to include a utilization plan or that include a utilization
plan with deficiencies.
(f) (Blank).
(g) (Blank).
(h) State agencies and public institutions of higher
education shall notify the Commission on Equity and Inclusion
of all non-responsive bids or proposals for State contracts.
(Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
101-657, Article 1, Section 1-5, eff. 1-1-22; 101-657, Article
40, Section 40-130, eff. 1-1-22; 102-29, eff. 6-25-21;
102-558, eff. 8-20-21.)
(30 ILCS 575/4f)
(Section scheduled to be repealed on June 30, 2024)
Sec. 4f. Award of State contracts.
(1) It is hereby declared to be the public policy of the
State of Illinois to promote and encourage each State agency
and public institution of higher education to use businesses
owned by minorities, women, veterans, and persons with
disabilities in the area of goods and services, including, but

SB0238 - 368 - LRB103 24882 DTM 51215 b
not limited to, insurance services, investment management
services, information technology services, accounting
services, architectural and engineering services, and legal
services. Furthermore, each State agency and public
institution of higher education shall utilize such firms to
the greatest extent feasible within the bounds of financial
and fiduciary prudence, and take affirmative steps to remove
any barriers to the full participation of such firms in the
procurement and contracting opportunities afforded.
(a) When a State agency or public institution of
higher education, other than a community college, awards a
contract for insurance services, for each State agency or
public institution of higher education, it shall be the
aspirational goal to use insurance brokers owned by
minorities, women, veterans, and persons with disabilities
as defined by this Act, for not less than 20% of the total
annual premiums or fees; provided that, contracts
representing at least 11% of the total annual premiums or
fees shall be awarded to businesses owned by minorities;
contracts representing at least 7% of the total annual
premiums or fees shall be awarded to women-owned
businesses; and contracts representing at least 2% of the
total annual premiums or fees shall be awarded to
businesses owned by persons with disabilities.
(b) When a State agency or public institution of
higher education, other than a community college, awards a

SB0238 - 369 - LRB103 24882 DTM 51215 b
contract for investment services, for each State agency or
public institution of higher education, it shall be the
aspirational goal to use emerging investment managers
owned by minorities, women, veterans, and persons with
disabilities as defined by this Act, for not less than 20%
of the total funds under management; provided that,
contracts representing at least 11% of the total funds
under management shall be awarded to businesses owned by
minorities; contracts representing at least 7% of the
total funds under management shall be awarded to
women-owned businesses; and contracts representing at
least 2% of the total funds under management shall be
awarded to businesses owned by persons with disabilities.
Furthermore, it is the aspirational goal that not less
than 20% of the direct asset managers of the State funds be
minorities, women, veterans, and persons with
disabilities.
(c) When a State agency or public institution of
higher education, other than a community college, awards
contracts for information technology services, accounting
services, architectural and engineering services, and
legal services, for each State agency and public
institution of higher education, it shall be the
aspirational goal to use such firms owned by minorities,
women, and persons with disabilities as defined by this
Act and lawyers who are minorities, women, veterans, and

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persons with disabilities as defined by this Act, for not
less than 20% of the total dollar amount of State
contracts; provided that, contracts representing at least
11% of the total dollar amount of State contracts shall be
awarded to businesses owned by minorities or minority
lawyers; contracts representing at least 7% of the total
dollar amount of State contracts shall be awarded to
women-owned businesses or women who are lawyers; and
contracts representing at least 2% of the total dollar
amount of State contracts shall be awarded to businesses
owned by persons with disabilities or persons with
disabilities who are lawyers.
(d) When a community college awards a contract for
insurance services, investment services, information
technology services, accounting services, architectural
and engineering services, and legal services, it shall be
the aspirational goal of each community college to use
businesses owned by minorities, women, veterans, and
persons with disabilities as defined in this Act for not
less than 20% of the total amount spent on contracts for
these services collectively; provided that, contracts
representing at least 11% of the total amount spent on
contracts for these services shall be awarded to
businesses owned by minorities; contracts representing at
least 7% of the total amount spent on contracts for these
services shall be awarded to women-owned businesses; and

SB0238 - 371 - LRB103 24882 DTM 51215 b
contracts representing at least 2% of the total amount
spent on contracts for these services shall be awarded to
businesses owned by persons with disabilities. When a
community college awards contracts for investment
services, contracts awarded to investment managers who are
not emerging investment managers as defined in this Act
shall not be considered businesses owned by minorities,
women, veterans, or persons with disabilities for the
purposes of this Section.
(2) As used in this Section:
"Accounting services" means the measurement,
processing and communication of financial information
about economic entities including, but is not limited to,
financial accounting, management accounting, auditing,
cost containment and auditing services, taxation and
accounting information systems.
"Architectural and engineering services" means
professional services of an architectural or engineering
nature, or incidental services, that members of the
architectural and engineering professions, and individuals
in their employ, may logically or justifiably perform,
including studies, investigations, surveying and mapping,
tests, evaluations, consultations, comprehensive
planning, program management, conceptual designs, plans
and specifications, value engineering, construction phase
services, soils engineering, drawing reviews, preparation

SB0238 - 372 - LRB103 24882 DTM 51215 b
of operating and maintenance manuals, and other related
services.
"Emerging investment manager" means an investment
manager or claims consultant having assets under
management below $10 billion or otherwise adjudicating
claims.
"Information technology services" means, but is not
limited to, specialized technology-oriented solutions by
combining the processes and functions of software,
hardware, networks, telecommunications, web designers,
cloud developing resellers, and electronics.
"Insurance broker" means an insurance brokerage firm,
claims administrator, or both, that procures, places all
lines of insurance, or administers claims with annual
premiums or fees of at least $5,000,000 but not more than
$10,000,000.
"Legal services" means work performed by a lawyer
including, but not limited to, contracts in anticipation
of litigation, enforcement actions, or investigations.
(3) Each State agency and public institution of higher
education shall adopt policies that identify its plan and
implementation procedures for increasing the use of service
firms owned by minorities, women, and persons with
disabilities. All plan and implementation procedures for
increasing the use of service firms owned by minorities,
women, veterans, and persons with disabilities must be

SB0238 - 373 - LRB103 24882 DTM 51215 b
submitted to and approved by the Commission on Equity and
Inclusion on an annual basis.
(4) Except as provided in subsection (5), the Council
shall file no later than March 1 of each year an annual report
to the Governor, the Bureau on Apprenticeship Programs and
Clean Energy Jobs, and the General Assembly. The report filed
with the General Assembly shall be filed as required in
Section 3.1 of the General Assembly Organization Act. This
report shall: (i) identify the service firms used by each
State agency and public institution of higher education, (ii)
identify the actions it has undertaken to increase the use of
service firms owned by minorities, women, veterans, and
persons with disabilities, including encouraging
non-minority-owned firms to use other service firms owned by
minorities, women, veterans, and persons with disabilities as
subcontractors when the opportunities arise, (iii) state any
recommendations made by the Council to each State agency and
public institution of higher education to increase
participation by the use of service firms owned by minorities,
women, and persons with disabilities, and (iv) include the
following:
(A) For insurance services: the names of the insurance
brokers or claims consultants used, the total of risk
managed by each State agency and public institution of
higher education by insurance brokers, the total
commissions, fees paid, or both, the lines or insurance

SB0238 - 374 - LRB103 24882 DTM 51215 b
policies placed, and the amount of premiums placed; and
the percentage of the risk managed by insurance brokers,
the percentage of total commission, fees paid, or both,
the lines or insurance policies placed, and the amount of
premiums placed with each by the insurance brokers owned
by minorities, women, veterans, and persons with
disabilities by each State agency and public institution
of higher education.
(B) For investment management services: the names of
the investment managers used, the total funds under
management of investment managers; the total commissions,
fees paid, or both; the total and percentage of funds
under management of emerging investment managers owned by
minorities, women, veterans, and persons with
disabilities, including the total and percentage of total
commissions, fees paid, or both by each State agency and
public institution of higher education.
(C) The names of service firms, the percentage and
total dollar amount paid for professional services by
category by each State agency and public institution of
higher education.
(D) The names of service firms, the percentage and
total dollar amount paid for services by category to firms
owned by minorities, women, veterans, and persons with
disabilities by each State agency and public institution
of higher education.

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(E) The total number of contracts awarded for services
by category and the total number of contracts awarded to
firms owned by minorities, women, veterans, and persons
with disabilities by each State agency and public
institution of higher education.
(5) For community college districts, the Business
Enterprise Council shall only report the following information
for each community college district: (i) the name of the
community colleges in the district, (ii) the name and contact
information of a person at each community college appointed to
be the single point of contact for vendors owned by
minorities, women, veterans, or persons with disabilities,
(iii) the policy of the community college district concerning
certified vendors, (iv) the certifications recognized by the
community college district for determining whether a business
is owned or controlled by a minority, woman, veteran, or
person with a disability, (v) outreach efforts conducted by
the community college district to increase the use of
certified vendors, (vi) the total expenditures by the
community college district in the prior fiscal year in the
divisions of work specified in paragraphs (a), (b), and (c) of
subsection (1) of this Section and the amount paid to
certified vendors in those divisions of work, and (vii) the
total number of contracts entered into for the divisions of
work specified in paragraphs (a), (b), and (c) of subsection
(1) of this Section and the total number of contracts awarded

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to certified vendors providing these services to the community
college district. The Business Enterprise Council shall not
make any utilization reports under this Act for community
college districts for Fiscal Year 2015 and Fiscal Year 2016,
but shall make the report required by this subsection for
Fiscal Year 2017 and for each fiscal year thereafter. The
Business Enterprise Council shall report the information in
items (i), (ii), (iii), and (iv) of this subsection beginning
in September of 2016. The Business Enterprise Council may
collect the data needed to make its report from the Illinois
Community College Board.
(6) The status of the utilization of services shall be
discussed at each of the regularly scheduled Business
Enterprise Council meetings. Time shall be allotted for the
Council to receive, review, and discuss the progress of the
use of service firms owned by minorities, women, veterans, and
persons with disabilities by each State agency and public
institution of higher education; and any evidence regarding
past or present racial, ethnic, or gender-based discrimination
which directly impacts a State agency or public institution of
higher education contracting with such firms. If after
reviewing such evidence the Council finds that there is or has
been such discrimination against a specific group, race or
sex, the Council shall establish sheltered markets or adjust
existing sheltered markets tailored to address the Council's
specific findings for the divisions of work specified in

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paragraphs (a), (b), and (c) of subsection (1) of this
Section.
(Source: P.A. 101-170, eff. 1-1-20; 101-657, Article 5,
Section 5-10, eff. 7-1-21 (See Section 25 of P.A. 102-29 for
effective date of P.A. 101-657, Article 5, Section 5-10);
101-657, Article 40, Section 40-130, eff. 1-1-22; 102-29, eff.
6-25-21; 102-662, eff. 9-15-21.)
(30 ILCS 575/5) (from Ch. 127, par. 132.605)
(Section scheduled to be repealed on June 30, 2024)
Sec. 5. Business Enterprise Council.
(1) To help implement, monitor, and enforce the goals of
this Act, there is created the Business Enterprise Council for
Minorities, Women, Veterans, and Persons with Disabilities,
hereinafter referred to as the Council, composed of the
Chairperson of the Commission on Equity and Inclusion, the
Secretary of Human Services and the Directors of the
Department of Human Rights, the Department of Commerce and
Economic Opportunity, the Department of Central Management
Services, the Department of Transportation and the Capital
Development Board, or their duly appointed representatives,
with the Comptroller, or his or her designee, serving as an
advisory member of the Council. Ten individuals representing
businesses that are minority-owned, women-owned, ,
veteran-owned, or owned by persons with disabilities, 2
individuals representing the business community, and a

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representative of public institutions of higher education
shall be appointed by the Governor. These members shall serve
2-year terms and shall be eligible for reappointment. Any
vacancy occurring on the Council shall also be filled by the
Governor. Any member appointed to fill a vacancy occurring
prior to the expiration of the term for which his or her
predecessor was appointed shall be appointed for the remainder
of such term. Members of the Council shall serve without
compensation but shall be reimbursed for any ordinary and
necessary expenses incurred in the performance of their
duties.
The Chairperson of the Commission shall serve as the
Council chairperson and shall select, subject to approval of
the Council, a Secretary responsible for the operation of the
program who shall serve as the Division Manager of the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Division of the Commission on Equity
and Inclusion.
The Director of each State agency and the chief executive
officer of each public institution of higher education shall
appoint a liaison to the Council. The liaison shall be
responsible for submitting to the Council any reports and
documents necessary under this Act.
(2) The Council's authority and responsibility shall be
to:
(a) Devise a certification procedure to assure that

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businesses taking advantage of this Act are legitimately
classified as businesses owned by minorities, women,
veterans, or persons with disabilities and a registration
procedure to recognize, without additional evidence of
Business Enterprise Program eligibility, the certification
of businesses owned by minorities, women, or persons with
disabilities certified by the City of Chicago, Cook
County, or other jurisdictional programs with requirements
and procedures equaling or exceeding those in this Act.
(b) Maintain a list of all businesses legitimately
classified as businesses owned by minorities, women, or
persons with disabilities to provide to State agencies and
public institutions of higher education.
(c) Review rules and regulations for the
implementation of the program for businesses owned by
minorities, women, veterans, and persons with
disabilities.
(d) Review compliance plans submitted by each State
agency and public institution of higher education pursuant
to this Act.
(e) Make annual reports as provided in Section 8f to
the Governor and the General Assembly on the status of the
program.
(f) Serve as a central clearinghouse for information
on State contracts, including the maintenance of a list of
all pending State contracts upon which businesses owned by

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minorities, women, veterans, and persons with disabilities
may bid. At the Council's discretion, maintenance of the
list may include 24-hour electronic access to the list
along with the bid and application information.
(g) Establish a toll-free telephone number to
facilitate information requests concerning the
certification process and pending contracts.
(h) Adopt a procedure to grant automatic certification
to businesses holding a certification from at least one of
the following entities: (i) the Illinois Unified
Certification Program; (ii) the Women's Business
Development Center in Chicago; (iii) the Chicago Minority
Supplier Development Council; or (iv) any other similar
entity offering such certification to businesses.
(i) Develop and maintain a repository for
non-certified vendors that: (i) have applied for
certification and have been denied; (ii) have started, but
not completed, the certification process; (iii) have
achieved certification, but did not seek renewal; or (iv)
are known businesses owned by minorities, women, or
persons with disabilities.
(3) No premium bond rate of a surety company for a bond
required of a business owned by a minority, woman, veteran, or
person with a disability bidding for a State contract shall be
higher than the lowest rate charged by that surety company for
a similar bond in the same classification of work that would be

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written for a business not owned by a minority, woman,
veteran, or person with a disability.
(4) Any Council member who has direct financial or
personal interest in any measure pending before the Council
shall disclose this fact to the Council and refrain from
participating in the determination upon such measure.
(5) The Secretary shall have the following duties and
responsibilities:
(a) To be responsible for the day-to-day operation of
the Council.
(b) To serve as a coordinator for all of the State's
programs for businesses owned by minorities, women,
veterans, and persons with disabilities and as the
information and referral center for all State initiatives
for businesses owned by minorities, women, veterans, and
persons with disabilities.
(c) To establish an enforcement procedure whereby the
Council may recommend to the appropriate State legal
officer that the State exercise its legal remedies which
shall include (1) termination of the contract involved,
(2) prohibition of participation by the respondent in
public contracts for a period not to exceed 3 years, (3)
imposition of a penalty not to exceed any profit acquired
as a result of violation, or (4) any combination thereof.
Such procedures shall require prior approval by Council.
All funds collected as penalties under this subsection

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shall be used exclusively for maintenance and further
development of the Business Enterprise Program and
encouragement of participation in State procurement by
minorities, women, and persons with disabilities.
(d) To devise appropriate policies, regulations, and
procedures for including participation by businesses owned
by minorities, women, veterans, and persons with
disabilities as prime contractors, including, but not
limited to: (i) encouraging the inclusions of qualified
businesses owned by minorities, women, veterans, and
persons with disabilities on solicitation lists, (ii)
investigating the potential of blanket bonding programs
for small construction jobs, and (iii) investigating and
making recommendations concerning the use of the sheltered
market process.
(e) To devise procedures for the waiver of the
participation goals in appropriate circumstances.
(f) To accept donations and, with the approval of the
Council or the Chairperson of the Commission on Equity and
Inclusion, grants related to the purposes of this Act; to
conduct seminars related to the purpose of this Act and to
charge reasonable registration fees; and to sell
directories, vendor lists, and other such information to
interested parties, except that forms necessary to become
eligible for the program shall be provided free of charge
to a business or individual applying for the Business

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Enterprise Program.
(Source: P.A. 101-601, eff. 1-1-20; 101-657, eff. 1-1-22;
102-29, eff. 6-25-21; 102-558, eff. 8-20-21; 102-721, eff.
1-1-23.)
(30 ILCS 575/6) (from Ch. 127, par. 132.606)
(Section scheduled to be repealed on June 30, 2024)
Sec. 6. Agency compliance plans. Each State agency and
public institutions of higher education under the jurisdiction
of this Act shall file with the Council an annual compliance
plan which shall outline the goals of the State agency or
public institutions of higher education for contracting with
businesses owned by minorities, women, veterans, and persons
with disabilities for the then current fiscal year, the manner
in which the agency intends to reach these goals and a
timetable for reaching these goals. The Council shall review
and approve the plan of each State agency and public
institutions of higher education and may reject any plan that
does not comply with this Act or any rules or regulations
promulgated pursuant to this Act.
(a) The compliance plan shall also include, but not be
limited to, (1) a policy statement, signed by the State agency
or public institution of higher education head, expressing a
commitment to encourage the use of businesses owned by
minorities, women, veterans, and persons with disabilities,
(2) the designation of the liaison officer provided for in

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Section 5 of this Act, (3) procedures to distribute to
potential contractors and vendors the list of all businesses
legitimately classified as businesses owned by minorities,
women, veterans, and persons with disabilities and so
certified under this Act, (4) procedures to set separate
contract goals on specific prime contracts and purchase orders
with subcontracting possibilities based upon the type of work
or services and subcontractor availability, (5) procedures to
assure that contractors and vendors make good faith efforts to
meet contract goals, (6) procedures for contract goal
exemption, modification and waiver, and (7) the delineation of
separate contract goals for businesses owned by minorities,
women, veterans, and persons with disabilities.
(b) Approval of the compliance plans shall include such
delegation of responsibilities to the requesting State agency
or public institution of higher education as the Council deems
necessary and appropriate to fulfill the purpose of this Act.
Such responsibilities may include, but need not be limited to
those outlined in subsections (1), (2) and (3) of Section 7,
paragraph (a) of Section 8, and Section 8a of this Act.
(c) Each State agency and public institution of higher
education under the jurisdiction of this Act shall file with
the Council an annual report of its utilization of businesses
owned by minorities, women, veterans, and persons with
disabilities during the preceding fiscal year including lapse
period spending and a mid-fiscal year report of its

SB0238 - 385 - LRB103 24882 DTM 51215 b
utilization to date for the then current fiscal year. The
reports shall include a self-evaluation of the efforts of the
State agency or public institution of higher education to meet
its goals under the Act, as well as a plan to increase the
diversity of the vendors engaged in contracts with the State
agency or public institution of higher education, with a
particular focus on the most underrepresented in contract
awards.
(d) Notwithstanding any provisions to the contrary in this
Act, any State agency or public institution of higher
education which administers a construction program, for which
federal law or regulations establish standards and procedures
for the utilization of businesses owned by minorities, women,
veterans, and persons with disabilities minority-owned and
women-owned businesses and disadvantaged businesses, shall
implement a disadvantaged business enterprise program to
include businesses owned by minorities, women, veterans, and
persons with disabilities minority-owned and women-owned
businesses and disadvantaged businesses, using the federal
standards and procedures for the establishment of goals and
utilization procedures for the State-funded, as well as the
federally assisted, portions of the program. In such cases,
these goals shall not exceed those established pursuant to the
relevant federal statutes or regulations. Notwithstanding the
provisions of Section 8b, the Illinois Department of
Transportation is authorized to establish sheltered markets

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for the State-funded portions of the program consistent with
federal law and regulations. Additionally, a compliance plan
which is filed by such State agency or public institution of
higher education pursuant to this Act, which incorporates
equivalent terms and conditions of its federally-approved
compliance plan, shall be deemed approved under this Act.
(Source: P.A. 100-391, eff. 8-25-17; 101-657, eff. 7-1-21 (See
Section 25 of P.A. 102-29 for effective date of P.A.
101-657).)
(30 ILCS 575/6a) (from Ch. 127, par. 132.606a)
(Section scheduled to be repealed on June 30, 2024)
Sec. 6a. Notice of contracts to Council. Except in case of
emergency as defined in the Illinois Procurement Code, or as
authorized by rule promulgated by the Department of Central
Management Services, each agency and public institution of
higher education under the jurisdiction of this Act shall
notify the Secretary of the Council of proposed contracts for
professional and artistic services and provide the information
in the form and detail as required by rule promulgated by the
Department of Central Management Services. Notification may be
made through direct written communication to the Secretary to
be received at least 14 days before execution of the contract
(or the solicitation response date, if applicable). The agency
or public institution of higher education must consider any
vendor referred by the Secretary before execution of the

SB0238 - 387 - LRB103 24882 DTM 51215 b
contract. The provisions of this Section shall not apply to
any State agency or public institution of higher education
that has awarded contracts for professional and artistic
services to businesses owned by minorities, women, veterans,
and persons with disabilities totaling in the aggregate
$40,000,000 or more during the preceding fiscal year.
(Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)
(30 ILCS 575/7) (from Ch. 127, par. 132.607)
(Section scheduled to be repealed on June 30, 2024)
Sec. 7. Exemptions; waivers; publication of data.
(1) Individual contract exemptions. The Council, at the
written request of the affected agency, public institution of
higher education, or recipient of a grant or loan of State
funds of $250,000 or more complying with Section 45 of the
State Finance Act, may permit an individual contract or
contract package, (related contracts being bid or awarded
simultaneously for the same project or improvements) be made
wholly or partially exempt from State contracting goals for
businesses owned by minorities, women, veterans, and persons
with disabilities prior to the advertisement for bids or
solicitation of proposals whenever there has been a
determination, reduced to writing and based on the best
information available at the time of the determination, that
there is an insufficient number of businesses owned by
minorities, women, veterans, and persons with disabilities to

SB0238 - 388 - LRB103 24882 DTM 51215 b
ensure adequate competition and an expectation of reasonable
prices on bids or proposals solicited for the individual
contract or contract package in question. Any such exemptions
shall be given by the Council to the Bureau on Apprenticeship
Programs and Clean Energy Jobs.
(a) Written request for contract exemption. A written
request for an individual contract exemption must include,
but is not limited to, the following:
(i) a list of eligible businesses owned by
minorities, women, veterans, and persons with
disabilities;
(ii) a clear demonstration that the number of
eligible businesses identified in subparagraph (i)
above is insufficient to ensure adequate competition;
(iii) the difference in cost between the contract
proposals being offered by businesses owned by
minorities, women, veterans, and persons with
disabilities and the agency or public institution of
higher education's expectations of reasonable prices
on bids or proposals within that class; and
(iv) a list of eligible businesses owned by
minorities, women, veterans, and persons with
disabilities that the contractor has used in the
current and prior fiscal years.
(b) Determination. The Council's determination
concerning an individual contract exemption must consider,

SB0238 - 389 - LRB103 24882 DTM 51215 b
at a minimum, the following:
(i) the justification for the requested exemption,
including whether diligent efforts were undertaken to
identify and solicit eligible businesses owned by
minorities, women, veterans, and persons with
disabilities;
(ii) the total number of exemptions granted to the
affected agency, public institution of higher
education, or recipient of a grant or loan of State
funds of $250,000 or more complying with Section 45 of
the State Finance Act that have been granted by the
Council in the current and prior fiscal years; and
(iii) the percentage of contracts awarded by the
agency or public institution of higher education to
eligible businesses owned by minorities, women,
veterans, and persons with disabilities in the current
and prior fiscal years.
(2) Class exemptions.
(a) Creation. The Council, at the written request of
the affected agency or public institution of higher
education, may permit an entire class of contracts be made
exempt from State contracting goals for businesses owned
by minorities, women, veterans, and persons with
disabilities whenever there has been a determination,
reduced to writing and based on the best information
available at the time of the determination, that there is

SB0238 - 390 - LRB103 24882 DTM 51215 b
an insufficient number of qualified businesses owned by
minorities, women, veterans, and persons with disabilities
to ensure adequate competition and an expectation of
reasonable prices on bids or proposals within that class.
Any such exemption shall be given by the Council to the
Bureau on Apprenticeship Programs and Clean Energy Jobs.
(a-1) Written request for class exemption. A written
request for a class exemption must include, but is not
limited to, the following:
(i) a list of eligible businesses owned by
minorities, women, veterans, and persons with
disabilities;
(ii) a clear demonstration that the number of
eligible businesses identified in subparagraph (i)
above is insufficient to ensure adequate competition;
(iii) the difference in cost between the contract
proposals being offered by eligible businesses owned
by minorities, women, veterans, and persons with
disabilities and the agency or public institution of
higher education's expectations of reasonable prices
on bids or proposals within that class; and
(iv) the number of class exemptions the affected
agency or public institution of higher education
requested in the current and prior fiscal years.
(a-2) Determination. The Council's determination
concerning class exemptions must consider, at a minimum,

SB0238 - 391 - LRB103 24882 DTM 51215 b
the following:
(i) the justification for the requested exemption,
including whether diligent efforts were undertaken to
identify and solicit eligible businesses owned by
minorities, women, veterans, and persons with
disabilities;
(ii) the total number of class exemptions granted
to the requesting agency or public institution of
higher education that have been granted by the Council
in the current and prior fiscal years; and
(iii) the percentage of contracts awarded by the
agency or public institution of higher education to
eligible businesses owned by minorities, women,
veterans, and persons with disabilities the current
and prior fiscal years.
(b) Limitation. Any such class exemption shall not be
permitted for a period of more than one year at a time.
(3) Waivers. Where a particular contract requires a
contractor to meet a goal established pursuant to this Act,
the contractor shall have the right to request a waiver from
such requirements prior to the contract award. The Council
shall grant the waiver when the contractor demonstrates that
there has been made a good faith effort to comply with the
goals for participation by businesses owned by minorities,
women, veterans, and persons with disabilities. Any such
waiver shall also be transmitted in writing to the Bureau on

SB0238 - 392 - LRB103 24882 DTM 51215 b
Apprenticeship Programs and Clean Energy Jobs.
(a) Request for waiver. A contractor's request for a
waiver under this subsection (3) must include, but is not
limited to, the following, if available:
(i) a list of eligible businesses owned by
minorities, women, veterans, and persons with
disabilities that pertain to the scope of work of the
contract. Eligible businesses are only eligible if the
business is certified for the products or work
advertised in the solicitation;
(ii) (blank);
(iia) a clear demonstration that the contractor
selected portions of the work to be performed by
eligible businesses owned by minorities, women, and
persons with disabilities, solicited through all
reasonable and available means eligible businesses,
and negotiated in good faith with interested eligible
businesses;
(iib) documentation demonstrating that businesses
owned by minorities, women, and persons with
disabilities are not rejected as being unqualified
without sound reasons based on a thorough
investigation of their capabilities;
(iii) documentation demonstrating that the
contract proposals being offered by businesses owned
by minorities, women, veterans, and persons with

SB0238 - 393 - LRB103 24882 DTM 51215 b
disabilities are excessive or unreasonable; and
(iv) a list of businesses owned by minorities,
women, veterans, and persons with disabilities that
the contractor has used in the current and prior
fiscal years.
(b) Determination. The Council's determination
concerning waivers must include following:
(i) the justification for the requested waiver,
including whether the requesting contractor made a
good faith effort to identify and solicit eligible
businesses owned by minorities, women, veterans, and
persons with disabilities;
(ii) the total number of waivers the contractor
has been granted by the Council in the current and
prior fiscal years;
(iii) (blank); and
(iv) the contractor's use of businesses owned by
minorities, women, veterans, and persons with
disabilities in the current and prior fiscal years.
(3.5) (Blank).
(4) Conflict with other laws. In the event that any State
contract, which otherwise would be subject to the provisions
of this Act, is or becomes subject to federal laws or
regulations which conflict with the provisions of this Act or
actions of the State taken pursuant hereto, the provisions of
the federal laws or regulations shall apply and the contract

SB0238 - 394 - LRB103 24882 DTM 51215 b
shall be interpreted and enforced accordingly.
(5) Each chief procurement officer, as defined in the
Illinois Procurement Code, shall maintain on his or her
official Internet website a database of the following: (i)
waivers granted under this Section with respect to contracts
under his or her jurisdiction; (ii) a State agency or public
institution of higher education's written request for an
exemption of an individual contract or an entire class of
contracts; and (iii) the Council's written determination
granting or denying a request for an exemption of an
individual contract or an entire class of contracts. The
database, which shall be updated periodically as necessary,
shall be searchable by contractor name and by contracting
State agency.
(6) Each chief procurement officer, as defined by the
Illinois Procurement Code, shall maintain on its website a
list of all firms that have been prohibited from bidding,
offering, or entering into a contract with the State of
Illinois as a result of violations of this Act.
Each public notice required by law of the award of a State
contract shall include for each bid or offer submitted for
that contract the following: (i) the bidder's or offeror's
name, (ii) the bid amount, (iii) the name or names of the
certified firms identified in the bidder's or offeror's
submitted utilization plan, and (iv) the bid's amount and
percentage of the contract awarded to businesses owned by

SB0238 - 395 - LRB103 24882 DTM 51215 b
minorities, women, veterans, and persons with disabilities
identified in the utilization plan.
(Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
101-657, eff. 1-1-22; 102-29, eff. 6-25-21; 102-662, eff.
9-15-21.)
(30 ILCS 575/8) (from Ch. 127, par. 132.608)
(Section scheduled to be repealed on June 30, 2024)
Sec. 8. Enforcement.
(1) The Commission on Equity and Inclusion shall make such
findings, recommendations and proposals to the Governor as are
necessary and appropriate to enforce this Act. If, as a result
of its monitoring activities, the Commission determines that
its goals and policies are not being met by any State agency or
public institution of higher education, the Commission may
recommend any or all of the following actions:
(a) Establish enforcement procedures whereby the
Commission may recommend to the appropriate State agency,
public institutions of higher education, or law
enforcement officer that legal or administrative remedies
be initiated for violations of contract provisions or
rules issued hereunder or by a contracting State agency or
public institutions of higher education. State agencies
and public institutions of higher education shall be
authorized to adopt remedies for such violations which
shall include (1) termination of the contract involved,

SB0238 - 396 - LRB103 24882 DTM 51215 b
(2) prohibition of participation of the respondents in
public contracts for a period not to exceed one year, (3)
imposition of a penalty not to exceed any profit acquired
as a result of violation, or (4) any combination thereof.
(b) If the Commission concludes that a compliance plan
submitted under Section 6 is unlikely to produce the
participation goals for businesses owned by minorities,
women, veterans, and persons with disabilities within the
then current fiscal year, the Commission may recommend
that the State agency or public institution of higher
education revise its plan to provide additional
opportunities for participation by businesses owned by
minorities, women, veterans, and persons with
disabilities. Such recommended revisions may include, but
shall not be limited to, the following:
(i) assurances of stronger and better focused
solicitation efforts to obtain more businesses owned
by minorities, women, veterans, and persons with
disabilities as potential sources of supply;
(ii) division of job or project requirements, when
economically feasible, into tasks or quantities to
permit participation of businesses owned by
minorities, women, veterans, and persons with
disabilities;
(iii) elimination of extended experience or
capitalization requirements, when programmatically

SB0238 - 397 - LRB103 24882 DTM 51215 b
feasible, to permit participation of businesses owned
by minorities, women, veterans, and persons with
disabilities;
(iv) identification of specific proposed contracts
as particularly attractive or appropriate for
participation by businesses owned by minorities,
women, veterans, and persons with disabilities, such
identification to result from and be coupled with the
efforts of subparagraphs (i) through (iii);
(v) implementation of those regulations
established for the use of the sheltered market
process.
(2) State agencies and public institutions of higher
education shall monitor a vendor's compliance with its
utilization plan and the terms of its contract. Without
limitation, a vendor's failure to comply with its contractual
commitments as contained in the utilization plan; failure to
cooperate in providing information regarding its compliance
with its utilization plan; or the provision of false or
misleading information or statements concerning compliance,
certification status, or eligibility of the Business
Enterprise Program-certified vendor, good faith efforts, or
any other material fact or representation shall constitute a
material breach of the contract and entitle the State agency
or public institution of higher education to declare a
default, terminate the contract, or exercise those remedies

SB0238 - 398 - LRB103 24882 DTM 51215 b
provided for in the contract, at law, or in equity.
(3) Prior to the expiration or termination of a contract,
State agencies and public institutions of higher education
shall evaluate the contractor's fulfillment of the contract
goals for participation by businesses owned by minorities,
women, and persons with disabilities. The agency or public
institution of higher education shall prepare a report of the
vendor's compliance with the contract goals and file it with
the Secretary. If the Secretary determines that the vendor did
not fulfill the contract goals, the vendor shall be in breach
of the contract and may be subject to remedies or sanctions,
unless the vendor can show that it made good faith efforts to
meet the contract goals. Such remedies or sanctions for
failing to make good faith efforts may include (i)
disqualification of the contractor from doing business with
the State for a period of no more than one year or (ii)
cancellation, without any penalty to the State, of any
contract entered into by the vendor. The Business Enterprise
Program shall develop procedures for determining whether a
vendor has made good faith efforts to meet the contract goals
upon the expiration or termination of a contract.
(Source: P.A. 101-657, eff. 1-1-22; 102-29, eff. 6-25-21.)
(30 ILCS 575/8a) (from Ch. 127, par. 132.608a)
(Section scheduled to be repealed on June 30, 2024)
Sec. 8a. Advance and progress payments. Any contract

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awarded to a business owned by a minority, woman, veteran, or
person with a disability pursuant to this Act may contain a
provision for advance or progress payments, or both, except
that a State construction contract awarded to a businesses
owned by minorities, women, veterans, and persons with
disabilities minority-owned or women-owned business pursuant
to this Act may contain a provision for progress payments but
may not contain a provision for advance payments.
(Source: P.A. 100-391, eff. 8-25-17.)
(30 ILCS 575/8b) (from Ch. 127, par. 132.608b)
(Section scheduled to be repealed on June 30, 2024)
Sec. 8b. Scheduled council meetings; sheltered market. The
Council shall conduct regular meetings to carry out its
responsibilities under this Act. At each of the regularly
scheduled meetings, time shall be allocated for the Council to
receive, review and discuss any evidence regarding past or
present racial, ethnic or gender based discrimination which
directly impacts State contracting with businesses owned by
minorities, women, veterans, and persons with disabilities. If
after reviewing such evidence the Council finds that there is
or has been such discrimination against a specific group, race
or sex, the Council shall establish sheltered markets or
adjust existing sheltered markets tailored to address the
Council's specific findings.
"Sheltered market" shall mean a procurement procedure

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whereby certain contracts are selected and specifically set
aside for businesses owned by minorities, women, veterans, and
persons with disabilities on a competitive bid or negotiated
basis.
As part of the annual report which the Council must file
pursuant to paragraph (e) of subsection (2) of Section 5, the
Council shall report on any findings made pursuant to this
Section.
(Source: P.A. 100-391, eff. 8-25-17.)
(30 ILCS 575/8f)
(Section scheduled to be repealed on June 30, 2024)
Sec. 8f. Annual report. The Council shall file no later
than March 1 of each year, an annual report that shall detail
the level of achievement toward the goals specified in this
Act over the 3 most recent fiscal years. The annual report
shall include, but need not be limited to the following:
(1) a summary detailing expenditures subject to the
goals, the actual goals specified, and the goals attained
by each State agency and public institution of higher
education;
(2) a summary of the number of contracts awarded and
the average contract amount by each State agency and
public institution of higher education;
(3) an analysis of the level of overall goal
achievement concerning purchases from minority-owned

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businesses, women-owned businesses, veteran-owned
businesses, and businesses owned by persons with
disabilities;
(4) an analysis of the number of businesses owned by
minorities, women, veterans, and persons with disabilities
that are certified under the program as well as the number
of those businesses that received State procurement
contracts; and
(5) a summary of the number of contracts awarded to
businesses with annual gross sales of less than
$1,000,000; of $1,000,000 or more, but less than
$5,000,000; of $5,000,000 or more, but less than
$10,000,000; and of $10,000,000 or more.
(Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)
(30 ILCS 575/8g)
(Section scheduled to be repealed on June 30, 2024)
Sec. 8g. Business Enterprise Program Council reports.
(a) The Department of Central Management Services shall
provide a report to the Council identifying all State agency
non-construction solicitations that exceed $20,000,000 and
that have less than a 20% established goal prior to
publication.
(b) The Department of Central Management Services shall
provide a report to the Council identifying all State agency
non-construction awards that exceed $20,000,000. The report

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shall contain the following: (i) the name of the awardee; (ii)
the total bid amount; (iii) the established Business
Enterprise Program goal; (iv) the dollar amount and percentage
of participation by businesses owned by minorities, women,
veterans, and persons with disabilities; and (v) the names of
the certified firms identified in the utilization plan.
(Source: P.A. 100-391, eff. 8-25-17; 100-863, eff. 8-14-18.)
(30 ILCS 575/8h)
(Section scheduled to be repealed on June 30, 2024)
Sec. 8h. Encouragement for telecom and communications
entities to submit supplier diversity reports.
(1) The following entities that do business in Illinois or
serve Illinois customers shall be subject to this Section:
(i) all local exchange telecommunications carriers
with at least 35,000 subscriber access lines;
(ii) cable and video providers, as defined in Section
21-20l of the Public Utilities Act;
(iii) interconnected VoIP providers, as defined in
Section 13-235 of the Public Utilities Act;
(iv) wireless service providers;
(v) broadband internet access services providers; and
(vi) any other entity that provides messaging, voice,
or video services via the Internet or a social media
platform.
(2) Each entity subject to this Section may submit to the

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Illinois Commerce Commission and the Business Enterprise
Council an annual report by April 15, 20l8, and every April 15
thereafter, which provides, for the previous calendar year,
information and data on diversity goals, and progress toward
achieving those goals, by certified businesses owned by
minorities, women, veterans, and persons with disabilities,
and service-disabled veterans, provided that if the entity
does not track such information and data for businesses owned
by service-disabled veterans, the entity may provide
information and data for businesses owned by veterans.
The diversity report shall include the following:
(i) Overall annual spending on all such certified
businesses.
(ii) A narrative description of the entity's supplier
diversity goals and plans for meeting those goals.
(iii) The entity's best estimate of its annual
spending in professional services and spending with
certified businesses owned by minorities, women, veterans,
and persons with disabilities, and service-disabled
veterans (or veterans, if the reporting entity does not
track spending with service-disabled veterans), including,
but not limited to, the following professional services
categories: accounting; architecture and engineering;
consulting; information technology; insurance; financial,
legal, and marketing services; and other professional
services. The diversity report shall also include the

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entity's overall annual spending in the listed
professional service categories. For the diversity reports
due on April 15, 2018 and April 15, 2019, the information
on annual spending with certified businesses for
professional services required by this Section may be
provided for all professional services on an aggregated
basis.
(iv) Beginning with the diversity report due on April
15, 2020, the total number and percentage of women,
veterans, and minorities that provided services for each
construction project in the State.
An entity subject to this Section which is part of an
affiliated group of entities may provide information for the
affiliated group as a whole.
(3) Any entity that is subject to this Section that does
not submit a report shall be reported by the Business
Enterprise Council to each chief procurement officer. Upon
receiving a report from the Business Enterprise Council, the
chief procurement officer may prohibit any entities that do
not submit a report from bidding on State contracts for a
period of one year beginning the first day of the following
fiscal year and post on its respective bulletin the names of
all entities that fail to comply with the provisions of this
Section.
(4) A vendor may appeal any of the actions taken pursuant
to this Section in the same manner as a vendor denied

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certification, by following the appeal procedures in the
administrative rules created pursuant to this Act.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 110. The Illinois Income Tax Act is amended by
changing Section 220 as follows:
(35 ILCS 5/220)
Sec. 220. Angel investment credit.
(a) As used in this Section:
"Applicant" means a corporation, partnership, limited
liability company, or a natural person that makes an
investment in a qualified new business venture. The term
"applicant" does not include (i) a corporation, partnership,
limited liability company, or a natural person who has a
direct or indirect ownership interest of at least 51% in the
profits, capital, or value of the qualified new business
venture receiving the investment or (ii) a related member.
"Claimant" means an applicant certified by the Department
who files a claim for a credit under this Section.
"Department" means the Department of Commerce and Economic
Opportunity.
"Investment" means money (or its equivalent) given to a
qualified new business venture, at a risk of loss, in
consideration for an equity interest of the qualified new
business venture. The Department may adopt rules to permit

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certain forms of contingent equity investments to be
considered eligible for a tax credit under this Section.
"Qualified new business venture" means a business that is
registered with the Department under this Section.
"Related member" means a person that, with respect to the
applicant, 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
qualified new business venture that is the recipient of
the applicant's investment.
(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 qualified new business venture
that is the recipient of the applicant's investment.
(3) A corporation, and any party related to the
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

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aggregate, directly, indirectly, beneficially, or
constructively, at least 50% of the value of the
outstanding stock of the qualified new business venture
that is the recipient of the applicant's investment.
(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 qualified new business
venture that is the recipient of the applicant's
investment.
(5) A person to or from whom there is attribution of
ownership of stock in the qualified new business venture
that is the recipient of the applicant's investment in
accordance with Section 1563(e) of the Internal Revenue
Code, except that for purposes of determining whether a
person is a related member under this paragraph, "20%"
shall be substituted for "5%" whenever "5%" appears in
Section 1563(e) of the Internal Revenue Code.
(b) For taxable years beginning after December 31, 2010,
and ending on or before December 31, 2026, subject to the
limitations provided in this Section, a claimant may claim, as
a credit against the tax imposed under subsections (a) and (b)

SB0238 - 408 - LRB103 24882 DTM 51215 b
of Section 201 of this Act, an amount equal to 25% of the
claimant's investment made directly in a qualified new
business venture. In order for an investment in a qualified
new business venture to be eligible for tax credits, the
business must have applied for and received certification
under subsection (e) for the taxable year in which the
investment was made prior to the date on which the investment
was made. The credit under this Section may not exceed the
taxpayer's Illinois income tax liability for the taxable year.
If the amount of the credit exceeds the tax liability for the
year, the excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess credit
year. The 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. In the case of a
partnership or Subchapter S Corporation, the credit is allowed
to the partners or shareholders 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.
(c) The minimum amount an applicant must invest in any
single qualified new business venture in order to be eligible
for a credit under this Section is $10,000. The maximum amount
of an applicant's total investment made in any single
qualified new business venture that may be used as the basis

SB0238 - 409 - LRB103 24882 DTM 51215 b
for a credit under this Section is $2,000,000.
(d) The Department shall implement a program to certify an
applicant for an angel investment credit. Upon satisfactory
review, the Department shall issue a tax credit certificate
stating the amount of the tax credit to which the applicant is
entitled. The Department shall annually certify that: (i) each
qualified new business venture that receives an angel
investment under this Section has maintained a minimum
employment threshold, as defined by rule, in the State (and
continues to maintain a minimum employment threshold in the
State for a period of no less than 3 years from the issue date
of the last tax credit certificate issued by the Department
with respect to such business pursuant to this Section); and
(ii) the claimant's investment has been made and remains,
except in the event of a qualifying liquidity event, in the
qualified new business venture for no less than 3 years.
If an investment for which a claimant is allowed a credit
under subsection (b) is held by the claimant for less than 3
years, other than as a result of a permitted sale of the
investment to person who is not a related member, the claimant
shall pay to the Department of Revenue, in the manner
prescribed by the Department of Revenue, the aggregate amount
of the disqualified credits that the claimant received related
to the subject investment.
If the Department determines that a qualified new business
venture failed to maintain a minimum employment threshold in

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the State through the date which is 3 years from the issue date
of the last tax credit certificate issued by the Department
with respect to the subject business pursuant to this Section,
the claimant or claimants shall pay to the Department of
Revenue, in the manner prescribed by the Department of
Revenue, the aggregate amount of the disqualified credits that
claimant or claimants received related to investments in that
business.
(e) The Department shall implement a program to register
qualified new business ventures for purposes of this Section.
A business desiring registration under this Section shall be
required to submit a full and complete application to the
Department. A submitted application shall be effective only
for the taxable year in which it is submitted, and a business
desiring registration under this Section shall be required to
submit a separate application in and for each taxable year for
which the business desires registration. Further, if at any
time prior to the acceptance of an application for
registration under this Section by the Department one or more
events occurs which makes the information provided in that
application materially false or incomplete (in whole or in
part), the business shall promptly notify the Department of
the same. Any failure of a business to promptly provide the
foregoing information to the Department may, at the discretion
of the Department, result in a revocation of a previously
approved application for that business, or disqualification of

SB0238 - 411 - LRB103 24882 DTM 51215 b
the business from future registration under this Section, or
both. The Department may register the business only if all of
the following conditions are satisfied:
(1) it has its principal place of business in this
State;
(2) at least 51% of the employees employed by the
business are employed in this State;
(3) the business has the potential for increasing jobs
in this State, increasing capital investment in this
State, or both, as determined by the Department, and
either of the following apply:
(A) it is principally engaged in innovation in any
of the following: manufacturing; biotechnology;
nanotechnology; communications; agricultural
sciences; clean energy creation or storage technology;
processing or assembling products, including medical
devices, pharmaceuticals, computer software, computer
hardware, semiconductors, other innovative technology
products, or other products that are produced using
manufacturing methods that are enabled by applying
proprietary technology; or providing services that are
enabled by applying proprietary technology; or
(B) it is undertaking pre-commercialization
activity related to proprietary technology that
includes conducting research, developing a new product
or business process, or developing a service that is

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principally reliant on applying proprietary
technology;
(4) it is not principally engaged in real estate
development, insurance, banking, lending, lobbying,
political consulting, professional services provided by
attorneys, accountants, business consultants, physicians,
or health care consultants, wholesale or retail trade,
leisure, hospitality, transportation, or construction,
except construction of power production plants that derive
energy from a renewable energy resource, as defined in
Section 1 of the Illinois Power Agency Act;
(5) at the time it is first certified:
(A) it has fewer than 100 employees;
(B) it has been in operation in Illinois for not
more than 10 consecutive years prior to the year of
certification; and
(C) it has received not more than $10,000,000 in
aggregate investments;
(5.1) it agrees to maintain a minimum employment
threshold in the State of Illinois prior to the date which
is 3 years from the issue date of the last tax credit
certificate issued by the Department with respect to that
business pursuant to this Section;
(6) (blank); and
(7) it has received not more than $4,000,000 in
investments that qualified for tax credits under this

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Section.
(f) The Department, in consultation with the Department of
Revenue, shall adopt rules to administer this Section. The
aggregate amount of the tax credits that may be claimed under
this Section for investments made in qualified new business
ventures shall be limited at $10,000,000 per calendar year, of
which $500,000 shall be reserved for investments made in
qualified new business ventures which are minority-owned
businesses, women-owned businesses, veteran-owned businesses,
or businesses owned by a person with a disability (as those
terms are used and defined in the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act), and an additional $500,000 shall be reserved for
investments made in qualified new business ventures with their
principal place of business in counties with a population of
not more than 250,000. The foregoing annual allowable amounts
shall be allocated by the Department, on a per calendar
quarter basis and prior to the commencement of each calendar
year, in such proportion as determined by the Department,
provided that: (i) the amount initially allocated by the
Department for any one calendar quarter shall not exceed 35%
of the total allowable amount; (ii) any portion of the
allocated allowable amount remaining unused as of the end of
any of the first 3 calendar quarters of a given calendar year
shall be rolled into, and added to, the total allocated amount
for the next available calendar quarter; and (iii) the

SB0238 - 414 - LRB103 24882 DTM 51215 b
reservation of tax credits for investments in minority-owned
businesses, women-owned businesses, veteran-owned businesses,
businesses owned by a person with a disability, and in
businesses in counties with a population of not more than
250,000 is limited to the first 3 calendar quarters of a given
calendar year, after which they may be claimed by investors in
any qualified new business venture.
(g) A claimant may not sell or otherwise transfer a credit
awarded under this Section to another person.
(h) On or before March 1 of each year, the Department shall
report to the Governor and to the General Assembly on the tax
credit certificates awarded under this Section for the prior
calendar year.
(1) This report must include, for each tax credit
certificate awarded:
(A) the name of the claimant and the amount of
credit awarded or allocated to that claimant;
(B) the name and address (including the county) of
the qualified new business venture that received the
investment giving rise to the credit, the North
American Industry Classification System (NAICS) code
applicable to that qualified new business venture, and
the number of employees of the qualified new business
venture; and
(C) the date of approval by the Department of each
claimant's tax credit certificate.

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(2) The report must also include:
(A) the total number of applicants and the total
number of claimants, including the amount of each tax
credit certificate awarded to a claimant under this
Section in the prior calendar year;
(B) the total number of applications from
businesses seeking registration under this Section,
the total number of new qualified business ventures
registered by the Department, and the aggregate amount
of investment upon which tax credit certificates were
issued in the prior calendar year; and
(C) the total amount of tax credit certificates
sought by applicants, the amount of each tax credit
certificate issued to a claimant, the aggregate amount
of all tax credit certificates issued in the prior
calendar year and the aggregate amount of tax credit
certificates issued as authorized under this Section
for all calendar years.
(i) For each business seeking registration under this
Section after December 31, 2016, the Department shall require
the business to include in its application the North American
Industry Classification System (NAICS) code applicable to the
business and the number of employees of the business at the
time of application. Each business registered by the
Department as a qualified new business venture that receives
an investment giving rise to the issuance of a tax credit

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certificate pursuant to this Section shall, for each of the 3
years following the issue date of the last tax credit
certificate issued by the Department with respect to such
business pursuant to this Section, report to the Department
the following:
(1) the number of employees and the location at which
those employees are employed, both as of the end of each
year;
(2) the amount of additional new capital investment
raised as of the end of each year, if any; and
(3) the terms of any liquidity event occurring during
such year; for the purposes of this Section, a "liquidity
event" means any event that would be considered an exit
for an illiquid investment, including any event that
allows the equity holders of the business (or any material
portion thereof) to cash out some or all of their
respective equity interests.
(Source: P.A. 101-81, eff. 7-12-19; 102-16, eff. 6-17-21.)
Section 115. The Film Production Services Tax Credit Act
of 2008 is amended by changing Sections 30, 45, and 46 as
follows:
(35 ILCS 16/30)
Sec. 30. Review of application for accredited production
certificate.

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(a) In determining whether to issue an accredited
production certificate, the Department must determine that a
preponderance of the following conditions exist:
(1) The applicant's production intends to make the
expenditure in the State required for certification.
(2) The applicant's production is economically sound
and will benefit the people of the State of Illinois by
increasing opportunities for employment and strengthen the
economy of Illinois.
(3) The applicant has filed a diversity plan with the
Department outlining specific goals (i) for hiring
minority persons and women, as defined in the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act, and (ii) for using vendors
receiving certification under the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act; the Department has approved the plan as meeting the
requirements established by the Department; and the
Department has verified that the applicant has met or made
good-faith efforts in achieving those goals. The
Department must adopt any rules that are necessary to
ensure compliance with the provisions of this item (3) and
that are necessary to require that the applicant's plan
reflects the diversity of this State.
(4) The applicant's production application indicates
whether the applicant intends to participate in training,

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education, and recruitment programs that are organized in
cooperation with Illinois colleges and universities, labor
organizations, and the motion picture industry and are
designed to promote and encourage the training and hiring
of Illinois residents who represent the diversity of the
Illinois population.
(5) That, if not for the credit, the applicant's
production would not occur in Illinois, which may be
demonstrated by any means including, but not limited to,
evidence that the applicant has multi-state or
international location options and could reasonably and
efficiently locate outside of the State, or demonstration
that at least one other state or nation is being
considered for the production, or evidence that the
receipt of the credit is a major factor in the applicant's
decision and that without the credit the applicant likely
would not create or retain jobs in Illinois, or
demonstration that receiving the credit is essential to
the applicant's decision to create or retain new jobs in
the State.
(6) Awarding the credit will result in an overall
positive impact to the State, as determined by the
Department using the best available data.
(b) If any of the provisions in this Section conflict with
any existing collective bargaining agreements, the terms and
conditions of those collective bargaining agreements shall

SB0238 - 419 - LRB103 24882 DTM 51215 b
control.
(Source: P.A. 100-391, eff. 8-25-17.)
(35 ILCS 16/45)
Sec. 45. Evaluation of tax credit program; reports to the
General Assembly.
(a) The Department shall evaluate the tax credit program.
The evaluation must include an assessment of the effectiveness
of the program in creating and retaining new jobs in Illinois
and of the revenue impact of the program, and may include a
review of the practices and experiences of other states or
nations with similar programs. Upon completion of this
evaluation, the Department shall determine the overall success
of the program, and may make a recommendation to extend,
modify, or not extend the program based on this evaluation.
(b) At the end of each fiscal quarter, the Department must
submit to the General Assembly a report that includes, without
limitation, the following information:
(1) the economic impact of the tax credit program,
including the number of jobs created and retained,
including whether the job positions are entry level,
management, talent-related, vendor-related, or
production-related;
(2) the amount of film production spending brought to
Illinois, including the amount of spending and type of
Illinois vendors hired in connection with an accredited

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production; and
(3) an overall picture of whether the human
infrastructure of the motion picture industry in Illinois
reflects the geographical, racial and ethnic, gender, and
income-level diversity of the State of Illinois.
(c) At the end of each fiscal year, the Department must
submit to the General Assembly a report that includes the
following information:
(1) an identification of each vendor that provided
goods or services that were included in an accredited
production's Illinois production spending, provided that
the accredited production's Illinois production spending
attributable to that vendor exceeds, in the aggregate,
$10,000 or 10% of the accredited production's Illinois
production spending, whichever is less;
(2) the amount paid to each identified vendor by the
accredited production;
(3) for each identified vendor, a statement as to
whether the vendor is a minority-owned business or a
women-owned business, as defined under Section 2 of the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act, based on the best efforts
of an accredited production; and
(4) a description of any steps taken by the Department
to encourage accredited productions to use vendors who are
a minority-owned business or a women-owned business.

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(Source: P.A. 100-391, eff. 8-25-17; 100-603, eff. 7-13-18;
101-81, eff. 7-12-19.)
(35 ILCS 16/46)
Sec. 46. Illinois Production Workforce Development Fund.
(a) The Illinois Production Workforce Development Fund is
created as a special fund in the State Treasury. Beginning
July 1, 2022, amounts paid to the Department of Commerce and
Economic Opportunity pursuant to Section 213 of the Illinois
Income Tax Act shall be deposited into the Fund. The Fund shall
be used exclusively to provide grants to community-based
organizations, labor organizations, private and public
universities, community colleges, and other organizations and
institutions that may be deemed appropriate by the Department
to administer workforce training programs that support efforts
to recruit, hire, promote, retain, develop, and train a
diverse and inclusive workforce in the film industry.
(b) Pursuant to Section 213 of the Illinois Income Tax
Act, the Fund shall receive deposits in amounts not to exceed
0.25% of the amount of each credit certificate issued that is
not calculated on out-of-state wages and transferred or
claimed on an Illinois tax return in the quarter such credit
was transferred or claimed. In addition, such amount shall
also include 2.5% of the credit amount calculated on wages
paid to nonresidents that is transferred or claimed on an
Illinois tax return in the quarter such credit was transferred

SB0238 - 422 - LRB103 24882 DTM 51215 b
or claimed.
(c) At the request of the Department, the State
Comptroller and the State Treasurer may advance amounts to the
Fund on an annual basis not to exceed $1,000,000 in any fiscal
year. The fund from which the moneys are advanced shall be
reimbursed in the same fiscal year for any such advance
payments as described in this Section. The method of
reimbursement shall be set forth in rules.
(d) Of the appropriated funds in a given fiscal year, 50%
of the appropriated funds shall be reserved for organizations
that meet one of the following criteria. The organization is:
(1) a minority-owned business, as defined by the Business
Enterprise for Minorities, Women, Veterans, and Persons with
Disabilities Act; (2) located in an underserved area, as
defined by the Economic Development for a Growing Economy Tax
Credit Act; or (3) on an annual basis, training a cohort of
program participants where at least 50% of the program
participants are either a minority person, as defined by the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act, or reside in an underserved
area, as defined by the Economic Development for a Growing
Economy Tax Credit Act.
(e) The Illinois Production Workforce Development Fund
shall be administered by the Department. The Department may
adopt rules necessary to administer the provisions of this
Section.

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(f) Notwithstanding any other law to the contrary, the
Illinois Production Workforce Development Fund is not subject
to sweeps, administrative charge-backs, or any other fiscal or
budgetary maneuver that would in any way transfer any amounts
from the Illinois Production Workforce Development Fund.
(g) By June 30 of each fiscal year, the Department must
submit to the General Assembly a report that includes the
following information: (1) an identification of the
organizations and institutions that received funding to
administer workforce training programs during the fiscal year;
(2) the number of total persons trained and the number of
persons trained per workforce training program in the fiscal
year; and (3) in the aggregate, per organization, the number
of persons identified as a minority person or that reside in an
underserved area that received training in the fiscal year.
(Source: P.A. 102-700, eff. 4-19-22.)
Section 120. The Live Theater Production Tax Credit Act is
amended by changing Sections 10-30 and 10-50 as follows:
(35 ILCS 17/10-30)
Sec. 10-30. Review of application for accredited theater
production certificate.
(a) The Department shall issue an accredited theater
production certificate to an applicant if it finds that by a
preponderance the following conditions exist:

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(1) the applicant intends to make the expenditure in
the State required for certification of the accredited
theater production;
(2) the applicant's accredited theater production is
economically sound and will benefit the people of the
State of Illinois by increasing opportunities for
employment and will strengthen the economy of Illinois;
(3) the following requirements related to the
implementation of a diversity plan have been met: (i) the
applicant has filed with the Department a diversity plan
outlining specific goals for hiring Illinois labor
expenditure eligible minority persons and women, as
defined in the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act, and for using
vendors receiving certification under the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act; (ii) the Department has approved
the plan as meeting the requirements established by the
Department and verified that the applicant has met or made
good faith efforts in achieving those goals; and (iii) the
Department has adopted any rules that are necessary to
ensure compliance with the provisions set forth in this
paragraph and necessary to require that the applicant's
plan reflects the diversity of the population of this
State;
(4) the applicant's accredited theater production

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application indicates whether the applicant intends to
participate in training, education, and recruitment
programs that are organized in cooperation with Illinois
colleges and universities, labor organizations, and the
holders of accredited theater production certificates and
are designed to promote and encourage the training and
hiring of Illinois residents who represent the diversity
of Illinois;
(5) except for commercial Broadway touring shows
qualifying in the State fiscal year ending June 30, 2023,
if not for the tax credit award, the applicant's
accredited theater production would not occur in Illinois,
which may be demonstrated by any means, including, but not
limited to, evidence that: (i) the applicant, presenter,
owner, or licensee of the production rights has other
state or international location options at which to
present the production and could reasonably and
efficiently locate outside of the State, (ii) at least one
other state or nation could be considered for the
production, (iii) the receipt of the tax award credit is a
major factor in the decision of the applicant, presenter,
production owner or licensee as to where the production
will be presented and that without the tax credit award
the applicant likely would not create or retain jobs in
Illinois, or (iv) receipt of the tax credit award is
essential to the applicant's decision to create or retain

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new jobs in the State; and
(6) the tax credit award will result in an overall
positive impact to the State, as determined by the
Department using the best available data.
(b) If any of the provisions in this Section conflict with
any existing collective bargaining agreements, the terms and
conditions of those collective bargaining agreements shall
control.
(c) The Department shall act expeditiously regarding
approval of applications for accredited theater production
certificates so as to accommodate the pre-production work,
booking, commencement of ticket sales, determination of
performance dates, load in, and other matters relating to the
live theater productions for which approval is sought.
(Source: P.A. 102-1112, eff. 12-21-22.)
(35 ILCS 17/10-50)
Sec. 10-50. Live theater tax credit award program
evaluation and reports.
(a) The Department's live theater tax credit award
evaluation must include:
(i) an assessment of the effectiveness of the program
in creating and retaining new jobs in Illinois;
(ii) an assessment of the revenue impact of the
program;
(iii) in the discretion of the Department, a review of

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the practices and experiences of other states or nations
with similar programs; and
(iv) an assessment of the overall success of the
program. The Department may make a recommendation to
extend, modify, or not extend the program based on the
evaluation.
(b) At the end of each fiscal quarter, the Department
shall submit to the General Assembly a report that includes,
without limitation:
(i) an assessment of the economic impact of the
program, including the number of jobs created and
retained, and whether the job positions are entry level,
management, vendor, or production related;
(ii) the amount of accredited theater production
spending brought to Illinois, including the amount of
spending and type of Illinois vendors hired in connection
with an accredited theater production; and
(iii) a determination of whether those receiving
qualifying Illinois labor expenditure salaries or wages
reflect the geographical, racial and ethnic, gender, and
income level diversity of the State of Illinois.
(c) At the end of each fiscal year, the Department shall
submit to the General Assembly a report that includes, without
limitation:
(i) the identification of each vendor that provided
goods or services that were included in an accredited

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theater production's Illinois production spending;
(ii) a statement of the amount paid to each identified
vendor by the accredited theater production and whether
the vendor is a minority-owned or women-owned business as
defined in Section 2 of the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act; and
(iii) a description of the steps taken by the
Department to encourage accredited theater productions to
use vendors who are minority-owned or women-owned
businesses.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 121. The Manufacturing Illinois Chips for Real
Opportunity (MICRO) Act is amended by changing Section 110-10
as follows:
(35 ILCS 45/110-10)
Sec. 110-10. Definitions. As used in this Act:
"Agreement" means the agreement between a taxpayer and the
Department under the provisions of this Act.
"Applicant" means a taxpayer that: (i) operates a business
in Illinois as a semiconductor manufacturer, a microchip
manufacturer, or a manufacturer of semiconductor or microchip
component parts; or (ii) is planning to locate a business
within the State of Illinois as a semiconductor manufacturer,

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a microchip manufacturer, or a manufacturer of semiconductor
or microchip component parts. "Applicant" does not include a
taxpayer who closes or substantially reduces by more than 50%
operations at one location in the State and relocates
substantially the same operation to another location in the
State. This does not prohibit a taxpayer from expanding its
operations at another location in the State. This also does
not prohibit a taxpayer from moving its operations from one
location in the State to another location in the State for the
purpose of expanding the operation, provided that the
Department determines that expansion cannot reasonably be
accommodated within the municipality or county 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.
"Capital improvements" means the purchase, renovation,
rehabilitation, or construction of permanent tangible land,
buildings, structures, equipment, and furnishings in an
approved project sited in Illinois and expenditures for goods
or services that are normally capitalized, including
organizational costs and research and development costs
incurred in Illinois. For land, buildings, structures, and

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equipment that are leased, the lease must equal or exceed the
term of the agreement, and the cost of the property shall be
determined from the present value, using the corporate
interest rate prevailing at the time of the application, of
the lease payments.
"Credit" or "MICRO credit" means a credit agreed to
between the Department and applicant under this Act.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Energy Transition Area" means a county with less than
100,000 people or a municipality that contains one or more of
the following:
(1) a fossil fuel plant that was retired from service
or has significant reduced service within 6 years before
the time of the application or will be retired or have
service significantly reduced within 6 years following the
time of the application; or
(2) a coal mine that was closed or had operations
significantly reduced within 6 years before the time of
the application or is anticipated to be closed or have
operations significantly reduced within 6 years following
the time of the application.
"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 (PEO) is a full-time employee if employed in the
service of the applicant for consideration for at least 35
hours each week.
"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.
"Institution of higher education" or "institution" means
any accredited public or private university, college,
community college, business, technical, or vocational school,
or other accredited educational institution offering degrees
and instruction beyond the secondary school level.
"MICRO construction jobs credit" means a credit agreed to
between the Department and the applicant under this Act that
is based on the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities.
"MICRO credit" means a credit agreed to between the
Department and the applicant under this Act that is based on
the incremental income tax attributable to new employees and,
if applicable, retained employees, and on training costs for
such employees at the applicant's project.

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"Microchip" means a wafer of semiconducting material that
is less than 15 millimeters long and less than 5 millimeters
wide and is used to make an integrated circuit.
"Microchip manufacturer" means a new or existing
manufacturer that is focused on reequipping, expanding, or
establishing a manufacturing facility in Illinois that
produces microchips or key components that directly support
the functions of microchips.
"Minority person" means a minority person as defined in
the Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.
"New employee" means a newly-hired full-time employee
employed to work at the project site and whose work is directly
related to the project.
"Noncompliance date" means, in the case of a taxpayer that
is not complying with the requirements of the agreement or the
provisions of this Act, the day following the last date upon
which the taxpayer was in compliance with the requirements of
the agreement and the provisions of this Act, as determined by
the Director.
"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.
"Placed in service" means the state or condition of
readiness, availability for a specifically assigned function,
and the facility is constructed and ready to conduct its

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facility operations to manufacture goods.
"Professional employer organization" (PEO) means an
employee leasing company, as defined in Section 206.1 of the
Illinois Unemployment Insurance Act.
"Program" means the Manufacturing Illinois Chips for Real
Opportunity (MICRO) program established in this Act.
"Project" means a for-profit economic development activity
for the manufacture of semiconductors and microchips.
"Related member" means a person that, with respect to the
taxpayer during any portion of the taxable year, is any one of
the following:
(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, 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 under the attribution rules

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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
aggregate at least 50% of the profits, capital, stock, or
value of the taxpayer.
(5) A person to or from whom there is an attribution of
stock ownership in accordance with Section 1563(e) of the
Internal Revenue Code, except, for purposes of determining
whether a person is a related member under this paragraph,
20% shall be substituted for 5% wherever 5% appears in
Section 1563(e) of the Internal Revenue Code.
"Retained employee" means a full-time employee employed by
the taxpayer prior to the term of the agreement who continues
to be employed during the term of the agreement whose job
duties are directly and substantially related to the project.
For purposes of this definition, "directly and substantially
related to the project" means at least two-thirds of the
employee's job duties must be directly related to the project
and the employee must devote at least two-thirds of his or her

SB0238 - 435 - LRB103 24882 DTM 51215 b
time to the project. The term "retained employee" does not
include any individual who has a direct or an indirect
ownership interest of at least 5% in the profits, equity,
capital, or value of the taxpayer or 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 indirect ownership of at least 5% in the profits,
equity, capital, or value of the taxpayer.
"Semiconductor" means any class of crystalline solids
intermediate in electrical conductivity between a conductor
and an insulator.
"Semiconductor manufacturer" means a new or existing
manufacturer that is focused on reequipping, expanding, or
establishing a manufacturing facility in Illinois that
produces semiconductors or key components that directly
support the functions of semiconductors.
"Statewide baseline" means the total number of full-time
employees of the applicant and any related member employed by
such entities at the time of application for incentives under
this Act.
"Taxpayer" means an individual, corporation, partnership,
or other entity that has a legal obligation to pay Illinois
income taxes and file an Illinois income tax return.
"Training costs" means costs incurred to upgrade the
technological skills of full-time employees in Illinois and
includes: curriculum development; training materials

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(including scrap product costs); trainee domestic travel
expenses; instructor costs (including wages, fringe benefits,
tuition and domestic travel expenses); rent, purchase or lease
of training equipment; and other usual and customary training
costs. "Training costs" do not include costs associated with
travel outside the United States (unless the taxpayer receives
prior written approval for the travel by the Director based on
a showing of substantial need or other proof the training is
not reasonably available within the United States), wages and
fringe benefits of employees during periods of training, or
administrative cost related to full-time employees of the
taxpayer.
"Underserved area" means any geographic areas as defined
in Section 5-5 of the Economic Development for a Growing
Economy Tax Credit Act.
(Source: P.A. 102-700, eff. 4-19-22.)
Section 122. The Property Tax Code is amended by changing
Section 18-50.2 as follows:
(35 ILCS 200/18-50.2)
Sec. 18-50.2. Vendor information reporting. Beginning in
levy year 2022, each taxing district that has an aggregate
property tax levy of more than $5,000,000 for the applicable
levy year shall make a good faith effort to collect and
electronically publish data from all vendors and

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subcontractors doing business with the taxing district as to:
(1) whether the vendor or subcontractor is a minority-owned,
women-owned, or veteran-owned business, as defined in the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act; and (2) whether the vendor or
subcontractor holds any certifications for those categories or
if they are self-certifying; if the vendor self-certifies,
then the taxing district shall publish whether the vendor
qualifies as a small business under federal Small Business
Administration standards. 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 exercise by home rule units of powers and
functions exercised by the State.
The taxing district may use existing software to comply
with this Section.
(Source: P.A. 102-265, eff. 8-6-21.)
Section 125. The Illinois Pension Code is amended by
changing Sections 1-109.1, 1-113.21, and 1-113.22 as follows:
(40 ILCS 5/1-109.1) (from Ch. 108 1/2, par. 1-109.1)
Sec. 1-109.1. Allocation and delegation of fiduciary
duties.
(1) Subject to the provisions of Section 22A-113 of this
Code and subsections (2) and (3) of this Section, the board of

SB0238 - 438 - LRB103 24882 DTM 51215 b
trustees of a retirement system or pension fund established
under this Code may:
(a) Appoint one or more investment managers as
fiduciaries to manage (including the power to acquire and
dispose of) any assets of the retirement system or pension
fund; and
(b) Allocate duties among themselves and designate
others as fiduciaries to carry out specific fiduciary
activities other than the management of the assets of the
retirement system or pension fund.
(2) The board of trustees of a pension fund established
under Article 5, 6, 8, 9, 10, 11, 12 or 17 of this Code may not
transfer its investment authority, nor transfer the assets of
the fund to any other person or entity for the purpose of
consolidating or merging its assets and management with any
other pension fund or public investment authority, unless the
board resolution authorizing such transfer is submitted for
approval to the contributors and pensioners of the fund at
elections held not less than 30 days after the adoption of such
resolution by the board, and such resolution is approved by a
majority of the votes cast on the question in both the
contributors election and the pensioners election. The
election procedures and qualifications governing the election
of trustees shall govern the submission of resolutions for
approval under this paragraph, insofar as they may be made
applicable.

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(3) Pursuant to subsections (h) and (i) of Section 6 of
Article VII of the Illinois Constitution, the investment
authority of boards of trustees of retirement systems and
pension funds established under this Code is declared to be a
subject of exclusive State jurisdiction, and the concurrent
exercise by a home rule unit of any power affecting such
investment authority is hereby specifically denied and
preempted.
(4) For the purposes of this Code, "emerging investment
manager" means a qualified investment adviser that manages an
investment portfolio of at least $10,000,000 but less than
$10,000,000,000 and is a "minority-owned business",
"women-owned business", "veteran-owned business", or "business
owned by a person with a disability" as those terms are defined
in the Business Enterprise for Minorities, Women, Veterans,
and Persons with Disabilities Act.
It is hereby declared to be the public policy of the State
of Illinois to encourage the trustees of public employee
retirement systems, pension funds, and investment boards to
use emerging investment managers in managing their system's
assets, encompassing all asset classes, and increase the
racial, ethnic, and gender diversity of its fiduciaries, to
the greatest extent feasible within the bounds of financial
and fiduciary prudence, and to take affirmative steps to
remove any barriers to the full participation in investment
opportunities afforded by those retirement systems, pension

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funds, and investment boards.
A On or before January 1, 2010, a retirement system,
pension fund, or investment board subject to this Code, except
those whose investments are restricted by Section 1-113.2 of
this Code, shall adopt a policy that sets forth goals for
utilization of emerging investment managers. This policy shall
include quantifiable goals for the management of assets in
specific asset classes by emerging investment managers. The
retirement system, pension fund, or investment board shall
establish 4 3 separate goals for: (i) emerging investment
managers that are minority-owned businesses; (ii) emerging
investment managers that are women-owned businesses; and (iii)
emerging investment managers that are veteran-owned
businesses; and (iv) emerging investment managers that are
businesses owned by a person with a disability. The goals
established shall be based on the percentage of total dollar
amount of investment service contracts let to minority-owned
businesses, women-owned businesses, veteran-owned businesses,
and businesses owned by a person with a disability, as those
terms are defined in the Business Enterprise for Minorities,
Women, Veterans, and Persons with Disabilities Act. The
retirement system, pension fund, or investment board shall
annually review the goals established under this subsection.
If in any case an emerging investment manager meets the
criteria established by a board for a specific search and
meets the criteria established by a consultant for that

SB0238 - 441 - LRB103 24882 DTM 51215 b
search, then that emerging investment manager shall receive an
invitation by the board of trustees, or an investment
committee of the board of trustees, to present his or her firm
for final consideration of a contract. In the case where
multiple emerging investment managers meet the criteria of
this Section, the staff may choose the most qualified firm or
firms to present to the board.
The use of an emerging investment manager does not
constitute a transfer of investment authority for the purposes
of subsection (2) of this Section.
(5) Each retirement system, pension fund, or investment
board subject to this Code, except those whose investments are
restricted by Section 1-113.2 of this Code, shall establish a
policy that sets forth goals for increasing the racial,
ethnic, and gender diversity of its fiduciaries, including its
consultants and senior staff. Each retirement system, pension
fund, or investment board shall make its best efforts to
ensure that the racial and ethnic makeup of its senior
administrative staff represents the racial and ethnic makeup
of its membership. Each system, fund, and investment board
shall annually review the goals established under this
subsection.
(6) A On or before January 1, 2010, a retirement system,
pension fund, or investment board subject to this Code, except
those whose investments are restricted by Section 1-113.2 of
this Code, shall adopt a policy that sets forth goals for

SB0238 - 442 - LRB103 24882 DTM 51215 b
utilization of businesses owned by minorities, women,
veterans, and persons with disabilities for all contracts and
services. The goals established shall be based on the
percentage of total dollar amount of all contracts let to
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by a person
with a disability, as those terms are defined in the Business
Enterprise for Minorities, Women, Veterans, and Persons with
Disabilities Act. The retirement system, pension fund, or
investment board shall annually review the goals established
under this subsection.
(7) A On or before January 1, 2010, a retirement system,
pension fund, or investment board subject to this Code, except
those whose investments are restricted by Section 1-113.2 of
this Code, shall adopt a policy that sets forth goals for
increasing the utilization of minority broker-dealers. For the
purposes of this Code, "minority broker-dealer" means a
qualified broker-dealer who meets the definition of
"minority-owned business", "women-owned business",
"veteran-owned businesses", or "business owned by a person
with a disability", as those terms are defined in the Business
Enterprise for Minorities, Women, Veterans, and Persons with
Disabilities Act. The retirement system, pension fund, or
investment board shall annually review the goals established
under this Section.
(8) Each retirement system, pension fund, and investment

SB0238 - 443 - LRB103 24882 DTM 51215 b
board subject to this Code, except those whose investments are
restricted by Section 1-113.2 of this Code, shall submit a
report to the Governor and the General Assembly by January 1 of
each year that includes the following: (i) the policy adopted
under subsection (4) of this Section, including the names and
addresses of the emerging investment managers used, percentage
of the assets under the investment control of emerging
investment managers for the 4 3 separate goals, and the
actions it has undertaken to increase the use of emerging
investment managers, including encouraging other investment
managers to use emerging investment managers as subcontractors
when the opportunity arises; (ii) the policy adopted under
subsection (5) of this Section; (iii) the policy adopted under
subsection (6) of this Section; (iv) the policy adopted under
subsection (7) of this Section, including specific actions
undertaken to increase the use of minority broker-dealers; and
(v) the policy adopted under subsection (9) of this Section.
(9) A On or before February 1, 2015, a retirement system,
pension fund, or investment board subject to this Code, except
those whose investments are restricted by Section 1-113.2 of
this Code, shall adopt a policy that sets forth goals for
increasing the utilization of minority investment managers.
For the purposes of this Code, "minority investment manager"
means a qualified investment manager that manages an
investment portfolio and meets the definition of
"minority-owned business", "women-owned business",

SB0238 - 444 - LRB103 24882 DTM 51215 b
"veteran-owned business", or "business owned by a person with
a disability", as those terms are defined in the Business
Enterprise for Minorities, Women, Veterans, and Persons with
Disabilities Act.
It is hereby declared to be the public policy of the State
of Illinois to encourage the trustees of public employee
retirement systems, pension funds, and investment boards to
use minority investment managers in managing their systems'
assets, encompassing all asset classes, and to increase the
racial, ethnic, and gender diversity of their fiduciaries, to
the greatest extent feasible within the bounds of financial
and fiduciary prudence, and to take affirmative steps to
remove any barriers to the full participation in investment
opportunities afforded by those retirement systems, pension
funds, and investment boards.
The retirement system, pension fund, or investment board
shall establish 4 3 separate goals for: (i) minority
investment managers that are minority-owned businesses; (ii)
minority investment managers that are women-owned businesses;
and (iii) minority investment managers that are veteran-owned
businesses; and (iv) minority investment managers that are
businesses owned by a person with a disability. The retirement
system, pension fund, or investment board shall annually
review the goals established under this Section.
If in any case a minority investment manager meets the
criteria established by a board for a specific search and

SB0238 - 445 - LRB103 24882 DTM 51215 b
meets the criteria established by a consultant for that
search, then that minority investment manager shall receive an
invitation by the board of trustees, or an investment
committee of the board of trustees, to present his or her firm
for final consideration of a contract. In the case where
multiple minority investment managers meet the criteria of
this Section, the staff may choose the most qualified firm or
firms to present to the board.
The use of a minority investment manager does not
constitute a transfer of investment authority for the purposes
of subsection (2) of this Section.
(10) It Beginning January 1, 2016, it shall be the
aspirational goal for a retirement system, pension fund, or
investment board subject to this Code to use emerging
investment managers for not less than 20% of the total funds
under management. Furthermore, it shall be the aspirational
goal that not less than 20% of investment advisors be
minorities, women, veterans, and persons with disabilities as
those terms are defined in the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act. It shall be the aspirational goal to utilize businesses
owned by minorities, women, veterans, and persons with
disabilities for not less than 20% of contracts awarded for
"information technology services", "accounting services",
"insurance brokers", "architectural and engineering services",
and "legal services" as those terms are defined in the Act.

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(Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17;
100-902, eff. 8-17-18.)
(40 ILCS 5/1-113.21)
Sec. 1-113.21. Contracts for services.
(a) No Beginning January 1, 2015, no contract, oral or
written, for investment services, consulting services, or
commitment to a private market fund shall be awarded by a
retirement system, pension fund, or investment board
established under this Code unless the investment advisor,
consultant, or private market fund first discloses:
(1) the number of its investment and senior staff and
the percentage of its investment and senior staff who are
(i) a minority person, (ii) a woman, and (iii) a person
with a disability; and
(2) the number of contracts, oral or written, for
investment services, consulting services, and professional
and artistic services that the investment advisor,
consultant, or private market fund has with (i) a
minority-owned business, (ii) a women-owned business, or
(iii) a business owned by a person with a disability, or
(iv) a veteran-owned business; and
(3) the number of contracts, oral or written, for
investment services, consulting services, and professional
and artistic services the investment advisor, consultant,
or private market fund has with a business other than (i) a

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minority-owned business, (ii) a women-owned business, or
(iii) a business owned by a person with a disability, or
(iv) a veteran-owned business, if more than 50% of
services performed pursuant to the contract are performed
by (i) a minority person, (ii) a woman, and (iii) a person
with a disability, and (iv) a veteran.
(b) The disclosures required by this Section shall be
considered, within the bounds of financial and fiduciary
prudence, prior to the awarding of a contract, oral or
written, for investment services, consulting services, or
commitment to a private market fund.
(c) For the purposes of this Section, the terms "minority
person", "woman", "veteran", "person with a disability",
"minority-owned business", "women-owned business",
"veteran-owned business", and "business owned by a person with
a disability" have the same meaning as those terms have in the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.
(d) For purposes of this Section, the term "private market
fund" means any private equity fund, private equity fund of
funds, venture capital fund, hedge fund, hedge fund of funds,
real estate fund, or other investment vehicle that is not
publicly traded.
(Source: P.A. 100-391, eff. 8-25-17.)
(40 ILCS 5/1-113.22)

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Sec. 1-113.22. Required disclosures from consultants;
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
a disability.
(a) No later than January 1, 2018 and each January 1
thereafter, each consultant retained by the board of a
retirement system, board of a pension fund, or investment
board shall disclose to that board of the retirement system,
board of the pension fund, or investment board:
(1) the total number of searches for investment
services made by the consultant in the prior calendar
year;
(2) the total number of searches for investment
services made by the consultant in the prior calendar year
that included (i) a minority-owned business, (ii) a
women-owned business, or (iii) a business owned by a
person with a disability, or (iv) a veteran-owned
business;
(3) the total number of searches for investment
services made by the consultant in the prior calendar year
in which the consultant recommended for selection (i) a
minority-owned business, (ii) a women-owned business, or
(iii) a business owned by a person with a disability, or
(iv) a veteran-owned business;
(4) the total number of searches for investment
services made by the consultant in the prior calendar year

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that resulted in the selection of (i) a minority-owned
business, (ii) a women-owned business, or (iii) a business
owned by a person with a disability, or (iv) a
veteran-owned business; and
(5) the total dollar amount of investment made in the
previous calendar year with (i) a minority-owned business,
(ii) a women-owned business, or (iii) a business owned by
a person with a disability, or (iv) a veteran-owned
business that was selected after a search for investment
services performed by the consultant.
(b) No Beginning January 1, 2018, no contract, oral or
written, for consulting services shall be awarded by a board
of a retirement system, a board of a pension fund, or an
investment board without first requiring the consultant to
make the disclosures required in subsection (a) of this
Section.
(c) The disclosures required by subsection (b) of this
Section shall be considered, within the bounds of financial
and fiduciary prudence, prior to the awarding of a contract,
oral or written, for consulting services.
(d) As used in this Section, the terms "minority person",
"woman", "veteran", "person with a disability",
"minority-owned business", "women-owned business",
"veteran-owned business", and "business owned by a person with
a disability" have the same meaning as those terms have in the
Business Enterprise for Minorities, Women, Veterans, and

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Persons with Disabilities Act.
(Source: P.A. 100-542, eff. 11-8-17; 100-863, eff. 8-14-18.)
Section 130. The Counties Code is amended by changing
Sections 5-1134, 5-45015, 5-45025, and 5-45045 as follows:
(55 ILCS 5/5-1134)
Sec. 5-1134. Project labor agreements.
(a) Any sports, arts, or entertainment facilities that
receive revenue from a tax imposed under subsection (b) of
Section 5-1030 of this Code shall be considered to be public
works within the meaning of the Prevailing Wage Act. The
county authorities responsible for the construction,
renovation, modification, or alteration of the sports, arts,
or entertainment facilities shall enter into project labor
agreements with labor organizations as defined in the National
Labor Relations Act to assure that no labor dispute interrupts
or interferes with the construction, renovation, modification,
or alteration of the projects.
(b) The project labor agreements must include the
following:
(1) provisions establishing the minimum hourly wage
for each class of labor organization employees;
(2) provisions establishing the benefits and other
compensation for such class of labor organization; and
(3) provisions establishing that no strike or disputes

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will be engaged in by the labor organization employees.
The county, taxing bodies, municipalities, and the labor
organizations shall have the authority to include other terms
and conditions as they deem necessary.
(c) The project labor agreement shall be filed with the
Director of the Illinois Department of Labor in accordance
with procedures established by the Department. At a minimum,
the project labor agreement must provide the names, addresses,
and occupations of the owner of the facilities and the
individuals representing the labor organization employees
participating in the project labor agreement. The agreement
must also specify the terms and conditions required in
subsection (b) of this Section.
(d) In any agreement for the construction or
rehabilitation of a facility using revenue generated under
subsection (b) of Section 5-1030 of this Code, in connection
with the prequalification of general contractors for
construction or rehabilitation of the facility, it shall be
required that a commitment will be submitted detailing how the
general contractor will expend 15% or more of the aggregate
dollar value of the project as a whole with one or more
minority-owned businesses, women-owned businesses,
veteran-owned businesses, or businesses owned by a person with
a disability, as these terms are defined in Section 2 of the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.

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(Source: P.A. 100-391, eff. 8-25-17.)
(55 ILCS 5/5-45015)
Sec. 5-45015. Solicitation of proposals.
(a) A county may enter into design-build contracts. In
addition to the requirements set forth in its local
ordinances, when the county elects to use the design-build
delivery method, it must issue a notice of intent to receive
proposals for the project at least 14 days before issuing the
request for the proposal. The county must publish the advance
notice in the manner prescribed by ordinance, which shall
include posting the advance notice online on its website. The
county may publish the notice in construction industry
publications or post the notice on construction industry
websites. A brief description of the proposed procurement must
be included in the notice. The county must provide a copy of
the request for proposal to any party requesting a copy.
(b) The request for proposal shall be prepared for each
project and must contain, without limitation, the following
information:
(1) The name of the county.
(2) A preliminary schedule for the completion of the
contract.
(3) The proposed budget for the project, the source of
funds, and the currently available funds at the time the
request for proposal is submitted.

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(4) Prequalification criteria for design-build
entities wishing to submit proposals. The county shall
include, at a minimum, its normal qualifications,
licensing, registration, and other requirements; however,
nothing precludes the use of additional prequalification
criteria by the county.
(5) Material requirements of the contract, including,
but not limited to, the proposed terms and conditions,
required performance and payment bonds, insurance, and the
entity's plan to comply with the utilization goals for
business enterprises established in the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act and with Section 2-105 of the
Illinois Human Rights Act.
(6) The performance criteria.
(7) The evaluation criteria for each phase of the
solicitation. Price may not be used as a factor in the
evaluation of Phase I proposals.
(8) The number of entities that will be considered for
the technical and cost evaluation phase.
(c) The county may include any other relevant information
that it chooses to supply. The design-build entity shall be
entitled to rely upon the accuracy of this documentation in
the development of its proposal.
(d) The date that proposals are due must be at least 21
calendar days after the date of the issuance of the request for

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proposal. If the cost of the project is estimated to exceed
$12,000,000, then the proposal due date must be at least 28
calendar days after the date of the issuance of the request for
proposal. The county shall include in the request for proposal
a minimum of 30 days to develop the Phase II submissions after
the selection of entities from the Phase I evaluation is
completed.
(Source: P.A. 102-954, eff. 1-1-23.)
(55 ILCS 5/5-45025)
Sec. 5-45025. Procedures for Selection.
(a) The county must use a two-phase procedure for the
selection of the successful design-build entity. Phase I of
the procedure will evaluate and shortlist the design-build
entities based on qualifications, and Phase II will evaluate
the technical and cost proposals.
(b) The county shall include in the request for proposal
the evaluating factors to be used in Phase I. These factors are
in addition to any prequalification requirements of
design-build entities that the county has set forth. Each
request for proposal shall establish the relative importance
assigned to each evaluation factor and subfactor, including
any weighting of criteria to be employed by the county. The
county must maintain a record of the evaluation scoring to be
disclosed in event of a protest regarding the solicitation.
The county shall include the following criteria in every

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Phase I evaluation of design-build entities: (i) experience of
personnel; (ii) successful experience with similar project
types; (iii) financial capability; (iv) timeliness of past
performance; (v) experience with similarly sized projects;
(vi) successful reference checks of the firm; (vii) commitment
to assign personnel for the duration of the project and
qualifications of the entity's consultants; and (viii) ability
or past performance in meeting or exhausting good faith
efforts to meet the utilization goals for business enterprises
established in the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act and with Section
2-105 of the Illinois Human Rights Act. The county may include
any additional relevant criteria in Phase I that it deems
necessary for a proper qualification review.
The county may not consider any design-build entity for
evaluation or award if the entity has any pecuniary interest
in the project or has other relationships or circumstances,
including, but not limited to, long-term leasehold, mutual
performance, or development contracts with the county, that
may give the design-build entity a financial or tangible
advantage over other design-build entities in the preparation,
evaluation, or performance of the design-build contract or
that create the appearance of impropriety. No proposal shall
be considered that does not include an entity's plan to comply
with the requirements established in the Business Enterprise
for Minorities, Women, Veterans, and Persons with Disabilities

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Act, for both the design and construction areas of
performance, and with Section 2-105 of the Illinois Human
Rights Act.
Upon completion of the qualifications evaluation, the
county shall create a shortlist of the most highly qualified
design-build entities. The county, in its discretion, is not
required to shortlist the maximum number of entities as
identified for Phase II evaluation, provided that no less than
2 design-build entities nor more than 6 are selected to submit
Phase II proposals.
The county shall notify the entities selected for the
shortlist in writing. This notification shall commence the
period for the preparation of the Phase II technical and cost
evaluations. The county must allow sufficient time for the
shortlist entities to prepare their Phase II submittals
considering the scope and detail requested by the county.
(c) The county shall include in the request for proposal
the evaluating factors to be used in the technical and cost
submission components of Phase II. Each request for proposal
shall establish, for both the technical and cost submission
components of Phase II, the relative importance assigned to
each evaluation factor and subfactor, including any weighting
of criteria to be employed by the county. The county must
maintain a record of the evaluation scoring to be disclosed in
event of a protest regarding the solicitation.
The county shall include the following criteria in every

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Phase II technical evaluation of design-build entities: (i)
compliance with objectives of the project; (ii) compliance of
proposed services to the request for proposal requirements;
(iii) quality of products or materials proposed; (iv) quality
of design parameters; (v) design concepts; (vi) innovation in
meeting the scope and performance criteria; and (vii)
constructability of the proposed project. The county may
include any additional relevant technical evaluation factors
it deems necessary for proper selection.
The county shall include the following criteria in every
Phase II cost evaluation: the total project cost, the
construction costs, and the time of completion. The county may
include any additional relevant technical evaluation factors
it deems necessary for proper selection. The total project
cost criteria weighting weighing factor shall not exceed 30%.
The county shall directly employ or retain a licensed
design professional or a public art designer to evaluate the
technical and cost submissions to determine if the technical
submissions are in accordance with generally accepted industry
standards. Upon completion of the technical submissions and
cost submissions evaluation, the county may award the
design-build contract to the highest overall ranked entity.
(Source: P.A. 102-954, eff. 1-1-23; revised 12-16-22.)
(55 ILCS 5/5-45045)
Sec. 5-45045. Reports and evaluation. At the end of every

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6-month period following the contract award, and again prior
to final contract payout and closure, a selected design-build
entity shall detail, in a written report submitted to the
county, its efforts and success in implementing the entity's
plan to comply with the utilization goals for business
enterprises established in the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities Act
and the provisions of Section 2-105 of the Illinois Human
Rights Act.
(Source: P.A. 102-954, eff. 1-1-23.)
Section 135. The River Edge Redevelopment Zone Act is
amended by changing Section 10-5.3 as follows:
(65 ILCS 115/10-5.3)
Sec. 10-5.3. Certification of River Edge Redevelopment
Zones.
(a) Approval of designated River Edge Redevelopment Zones
shall be made by the Department by certification of the
designating ordinance. The Department shall promptly issue a
certificate for each zone upon its approval. The certificate
shall be signed by the Director of the Department, shall make
specific reference to the designating ordinance, which shall
be attached thereto, and shall be filed in the office of the
Secretary of State. A certified copy of the River Edge
Redevelopment Zone Certificate, or a duplicate original

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thereof, shall be recorded in the office of the recorder of
deeds of the county in which the River Edge Redevelopment Zone
lies.
(b) A River Edge Redevelopment Zone shall be effective
upon its certification. The Department shall transmit a copy
of the certification to the Department of Revenue, and to the
designating municipality. Upon certification of a River Edge
Redevelopment Zone, the terms and provisions of the
designating ordinance shall be in effect, and may not be
amended or repealed except in accordance with Section 10-5.4.
(c) A River Edge Redevelopment Zone shall be in effect for
the period stated in the certificate, which shall in no event
exceed 30 calendar years. Zones shall terminate at midnight of
December 31 of the final calendar year of the certified term,
except as provided in Section 10-5.4.
(d) In calendar years 2006 and 2007, the Department may
certify one pilot River Edge Redevelopment Zone in the City of
East St. Louis, one pilot River Edge Redevelopment Zone in the
City of Rockford, and one pilot River Edge Redevelopment Zone
in the City of Aurora.
In calendar year 2009, the Department may certify one
pilot River Edge Redevelopment Zone in the City of Elgin.
On or after the effective date of this amendatory Act of
the 97th General Assembly, the Department may certify one
additional pilot River Edge Redevelopment Zone in the City of
Peoria.

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Thereafter the Department may not certify any additional
River Edge Redevelopment Zones, but may amend and rescind
certifications of existing River Edge Redevelopment Zones in
accordance with Section 10-5.4, except that no River Edge
Redevelopment Zone may be extended on or after the effective
date of this amendatory Act of the 97th General Assembly. Each
River Edge Redevelopment Zone in existence on the effective
date of this amendatory Act of the 97th General Assembly shall
continue until its scheduled termination under this Act,
unless the Zone is decertified sooner. At the time of its term
expiration each River Edge Redevelopment Zone will become an
open enterprise zone, available for the previously designated
area or a different area to compete for designation as an
enterprise zone. No preference for designation as a Zone will
be given to the previously designated area.
(e) A municipality in which a River Edge Redevelopment
Zone has been certified must submit to the Department, within
60 days after the certification, a plan for encouraging the
participation by minority persons, women, persons with
disabilities, and veterans in the zone. The Department may
assist the municipality in developing and implementing the
plan. The terms "minority person", "woman", "veteran", and
"person with a disability" have the meanings set forth under
Section 2 of the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act. "Veteran" means
an Illinois resident who is a veteran as defined in subsection

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(h) of Section 1491 of Title 10 of the United States Code.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 140. The Metropolitan Pier and Exposition
Authority Act is amended by changing Sections 10.2 and 23.1 as
follows:
(70 ILCS 210/10.2)
Sec. 10.2. Bonding disclosure.
(a) Truth in borrowing disclosure. Within 60 business days
after the issuance of any bonds under this Act, the Authority
shall disclose the total principal and interest payments to be
paid on the bonds over the full stated term of the bonds. The
disclosure also shall include principal and interest payments
to be made by each fiscal year over the full stated term of the
bonds and total principal and interest payments to be made by
each fiscal year on all other outstanding bonds issued under
this Act over the full stated terms of those bonds. These
disclosures shall be calculated assuming bonds are not
redeemed or refunded prior to their stated maturities. Amounts
included in these disclosures as payment of interest on
variable rate bonds shall be computed at an interest rate
equal to the rate at which the variable rate bonds are first
set upon issuance, plus 2.5%, after taking into account any
credits permitted in the related indenture or other instrument
against the amount of such interest for each fiscal year.

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(b) Bond sale expenses disclosure. Within 60 business days
after the issuance of any bonds under this Act, the Authority
shall disclose all costs of issuance on each sale of bonds
under this Act. The disclosure shall include, as applicable,
the respective percentages of participation and compensation
of each underwriter that is a member of the underwriting
syndicate, legal counsel, financial advisors, and other
professionals for the bond issue and an identification of all
costs of issuance paid to minority-owned businesses,
women-owned businesses, veteran-owned businesses, and
businesses owned by persons with disabilities. The terms
"minority-owned businesses", "women-owned businesses",
"veteran-owned businesses", and "business owned by a person
with a disability" have the meanings given to those terms in
the Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act. In addition, the Authority
shall provide copies of all contracts under which any costs of
issuance are paid or to be paid to the Commission on Government
Forecasting and Accountability within 60 business days after
the issuance of bonds for which those costs are paid or to be
paid. Instead of filing a second or subsequent copy of the same
contract, the Authority may file a statement that specified
costs are paid under specified contracts filed earlier with
the Commission.
(c) The disclosures required in this Section shall be
published by posting the disclosures for no less than 30 days

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on the website of the Authority and shall be available to the
public upon request. The Authority shall also provide the
disclosures to the Governor's Office of Management and Budget,
the Commission on Government Forecasting and Accountability,
and the General Assembly.
(Source: P.A. 100-391, eff. 8-25-17.)
(70 ILCS 210/23.1) (from Ch. 85, par. 1243.1)
Sec. 23.1. Affirmative action.
(a) The Authority shall, within 90 days after the
effective date of this amendatory Act of 1984, establish and
maintain an affirmative action program designed to promote
equal employment opportunity and eliminate the effects of past
discrimination. Such program shall include a plan, including
timetables where appropriate, which shall specify goals and
methods for increasing participation by women, veterans, and
minorities, and persons with disabilities in employment,
including employment related to the planning, organization,
and staging of the games, by the Authority and by parties which
contract with the Authority. The Authority shall submit a
detailed plan with the General Assembly prior to September 1
of each year. Such program shall also establish procedures and
sanctions, which the Authority shall enforce to ensure
compliance with the plan established pursuant to this Section
and with State and federal laws and regulations relating to
the employment of women, veterans, and minorities, and persons

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with disabilities. A determination by the Authority as to
whether a party to a contract with the Authority has achieved
the goals or employed the methods for increasing participation
by women, veterans, and minorities, and persons with
disabilities shall be determined in accordance with the terms
of such contracts or the applicable provisions of rules and
regulations of the Authority existing at the time such
contract was executed, including any provisions for
consideration of good faith efforts at compliance which the
Authority may reasonably adopt.
(b) The Authority shall adopt and maintain minority-owned,
veteran-owned, and women-owned business, and persons with
disabilities-owned enterprise procurement programs under the
affirmative action program described in subsection (a) for any
and all work, including all contracting related to the
planning, organization, and staging of the games, undertaken
by the Authority. That work shall include, but is not limited
to, the purchase of professional services, construction
services, supplies, materials, and equipment. The programs
shall establish goals of awarding not less than 30% 25% of the
annual dollar value of all contracts, purchase orders, or
other agreements (collectively referred to as "contracts") to
minority-owned businesses, woman-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities and 5% of the annual dollar value of all
contracts to women-owned businesses. Without limiting the

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generality of the foregoing, the programs shall require in
connection with the prequalification or consideration of
vendors for professional service contracts, construction
contracts, and contracts for supplies, materials, equipment,
and services that each proposer or bidder submit as part of his
or her proposal or bid a commitment detailing how he or she
will expend 30% 25% or more of the dollar value of his or her
contracts with one or more minority-owned businesses,
woman-owned businesses, veteran-owned businesses, or
businesses owned by persons with disabilities and 5% or more
of the dollar value with one or more women-owned businesses.
Bids or proposals that do not include such detailed
commitments are not responsive and shall be rejected unless
the Authority deems it appropriate to grant a waiver of these
requirements. In addition the Authority may, in connection
with the selection of providers of professional services,
reserve the right to select a minority-owned business, or
women-owned business, veteran-owned business, or business
owned by a person with a disability or businesses to fulfill
the commitment to minority, and woman, veteran, and person
with a disability business participation. The commitment to
minority, and woman, veteran, and person with a disability
business participation may be met by the contractor or
professional service provider's status as a minority-owned, or
women-owned, or veteran-owned business or a business owned by
a person with a disability, by joint venture or by

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subcontracting a portion of the work with or purchasing
materials for the work from one or more such businesses, or by
any combination thereof. Each contract shall require the
contractor or provider to submit a certified monthly report
detailing the status of that contractor or provider's
compliance with the Authority's minority-owned, and
women-owned, veteran-owned, and persons with a
disability-owned business enterprise procurement program. The
Authority, after reviewing the monthly reports of the
contractors and providers, shall compile a comprehensive
report regarding compliance with this procurement program and
file it quarterly with the General Assembly. If, in connection
with a particular contract, the Authority determines that it
is impracticable or excessively costly to obtain
minority-owned, or women-owned, veteran-owned, and persons
with a disability-owned businesses to perform sufficient work
to fulfill the commitment required by this subsection, the
Authority shall reduce or waive the commitment in the
contract, as may be appropriate. The Authority shall establish
rules and regulations setting forth the standards to be used
in determining whether or not a reduction or waiver is
appropriate. The terms "minority-owned business", and
"women-owned business", "veteran-owned business", and
"business owned by a person with a disability" have the
meanings given to those terms in the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities

SB0238 - 467 - LRB103 24882 DTM 51215 b
Act.
(c) The Authority shall adopt and maintain an affirmative
action program in connection with the hiring of minorities,
and women, veterans, and persons with a disability on the
Expansion Project and on any and all construction projects,
including all contracting related to the planning,
organization, and staging of the games, undertaken by the
Authority. The program shall be designed to promote equal
employment opportunity and shall specify the goals and methods
for increasing the participation of minorities, and women,
veterans, and persons with a disability in a representative
mix of job classifications required to perform the respective
contracts awarded by the Authority.
(d) In connection with the Expansion Project, the
Authority shall incorporate the following elements into its
minority-owned, and women-owned, veteran-owned, and persons
with a disability-owned business procurement programs to the
extent feasible: (1) a major contractors program that permits
minority-owned businesses, and women-owned businesses,
veteran-owned businesses, and businesses owned by a person
with a disability to bear significant responsibility and risk
for a portion of the project; (2) a mentor/protege program
that provides financial, technical, managerial, equipment, and
personnel support to minority-owned businesses, and
women-owned businesses, veteran-owned businesses, and
businesses owned by a person with a disability; (3) an

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emerging firms program that includes minority-owned
businesses, and women-owned businesses, veteran-owned
businesses, and businesses owned by a person with a disability
that would not otherwise qualify for the project due to
inexperience or limited resources; (4) a small projects
program that includes participation by smaller minority-owned
businesses, and women-owned businesses, veteran-owned
businesses, and businesses owned by a person with a disability
on jobs where the total dollar value is $5,000,000 or less; and
(5) a set-aside program that will identify contracts requiring
the expenditure of funds less than $50,000 for bids to be
submitted solely by minority-owned businesses, and women-owned
businesses, veteran-owned businesses, and businesses owned by
a person with a disability.
(e) The Authority is authorized to enter into agreements
with contractors' associations, labor unions, and the
contractors working on the Expansion Project to establish an
Apprenticeship Preparedness Training Program to provide for an
increase in the number of minority, and women, veteran, and
persons with a disability journeymen and apprentices in the
building trades and to enter into agreements with Community
College District 508 to provide readiness training. The
Authority is further authorized to enter into contracts with
public and private educational institutions and persons in the
hospitality industry to provide training for employment in the
hospitality industry.

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(f) McCormick Place Advisory Board. There is created a
McCormick Place Advisory Board composed as follows: 2 members
shall be appointed by the Mayor of Chicago; 2 members shall be
appointed by the Governor; 2 members shall be State Senators
appointed by the President of the Senate; 2 members shall be
State Senators appointed by the Minority Leader of the Senate;
2 members shall be State Representatives appointed by the
Speaker of the House of Representatives; and 2 members shall
be State Representatives appointed by the Minority Leader of
the House of Representatives. The terms of all previously
appointed members of the Advisory Board expire on the
effective date of this amendatory Act of the 92nd General
Assembly. A State Senator or State Representative member may
appoint a designee to serve on the McCormick Place Advisory
Board in his or her absence.
"Minority person", "woman", "veteran", "person with a
disability", "minority-owned business", "women-owned
business", "veteran-owned business", and "business owned by a
person with a disability" have the meanings provided in the
Business Enterprise and Minorities, Women, Veterans, and
Persons with Disabilities Act.
A "member of a minority group" shall mean a person who is a
citizen or lawful permanent resident of the United States and
who is any of the following:
(1) American Indian or Alaska Native (a person having
origins in any of the original peoples of North and South

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America, including Central America, and who maintains
tribal affiliation or community attachment).
(2) Asian (a person having origins in any of the
original peoples of the Far East, Southeast Asia, or the
Indian subcontinent, including, but not limited to,
Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
the Philippine Islands, Thailand, and Vietnam).
(3) Black or African American (a person having origins
in any of the black racial groups of Africa).
(4) Hispanic or Latino (a person of Cuban, Mexican,
Puerto Rican, South or Central American, or other Spanish
culture or origin, regardless of race).
(5) Native Hawaiian or Other Pacific Islander (a
person having origins in any of the original peoples of
Hawaii, Guam, Samoa, or other Pacific Islands).
Members of the McCormick Place Advisory Board shall serve
2-year terms and until their successors are appointed, except
members who serve as a result of their elected position whose
terms shall continue as long as they hold their designated
elected positions. Vacancies shall be filled by appointment
for the unexpired term in the same manner as original
appointments are made. The McCormick Place Advisory Board
shall elect its own chairperson.
Members of the McCormick Place Advisory Board shall serve
without compensation but, at the Authority's discretion, shall
be reimbursed for necessary expenses in connection with the

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performance of their duties.
The McCormick Place Advisory Board shall meet quarterly,
or as needed, shall produce any reports it deems necessary,
and shall:
(1) Work with the Authority on ways to improve the
area physically and economically;
(2) Work with the Authority regarding potential means
for providing increased economic opportunities to
minorities and women produced indirectly or directly from
the construction and operation of the Expansion Project;
(3) Work with the Authority to minimize any potential
impact on the area surrounding the McCormick Place
Expansion Project, including any impact on minority-owned
or women-owned businesses, resulting from the construction
and operation of the Expansion Project;
(4) Work with the Authority to find candidates for
building trades apprenticeships, for employment in the
hospitality industry, and to identify job training
programs;
(5) Work with the Authority to implement the
provisions of subsections (a) through (e) of this Section
in the construction of the Expansion Project, including
the Authority's goal of awarding not less than 30% 25% and
5% of the annual dollar value of contracts to
minority-owned businesses, and women-owned businesses,
veteran-owned businesses, and businesses owned by persons

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with a disability, the outreach program for minorities,
and women, veterans, and persons with a disability, and
the mentor/protege program for providing assistance to
minority-owned businesses, and women-owned businesses,
veteran-owned businesses, and businesses owned by persons
with a disability.
(g) The Authority shall comply with subsection (e) of
Section 5-42 of the Olympic Games and Paralympic Games (2016)
Law. For purposes of this Section, the term "games" has the
meaning set forth in the Olympic Games and Paralympic Games
(2016) Law.
(Source: P.A. 102-465, eff. 1-1-22.)
Section 141. The Forest Preserve District and Conservation
District Design-Build Authorization Act is amended by changing
Sections 15, 25, and 45 as follows:
(70 ILCS 860/15)
Sec. 15. Solicitation of proposals.
(a) A forest preserve district or conservation district
may enter into design-build contracts. In addition to the
requirements set forth in its local ordinances, when the
forest preserve district or conservation district elects to
use the design-build delivery method, it must issue a notice
of intent to receive proposals for the project at least 14 days
before issuing the request for the proposal. The forest

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preserve district or conservation district must publish the
advance notice in the manner prescribed by ordinance, which
shall include posting the advance notice online on its
website. The forest preserve district or conservation district
may publish the notice in construction industry publications
or post the notice on construction industry websites. A brief
description of the proposed procurement must be included in
the notice. The forest preserve district or conservation
district must provide a copy of the request for proposal to any
party requesting a copy.
(b) The request for proposal shall be prepared for each
project and must contain, without limitation, the following
information:
(1) The name of the forest preserve district or
conservation district.
(2) A preliminary schedule for the completion of the
contract.
(3) The proposed budget for the project, the source of
funds, and the currently available funds at the time the
request for proposal is submitted.
(4) Prequalification criteria for design-build
entities wishing to submit proposals. The forest preserve
district or conservation district shall include, at a
minimum, its normal prequalification, licensing,
registration, and other requirements; however, nothing
precludes the use of additional prequalification criteria

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by the forest preserve district or conservation district.
(5) Material requirements of the contract, including,
but not limited to, the proposed terms and conditions,
required performance and payment bonds, insurance, and the
entity's plan to comply with the utilization goals for
business enterprises established in the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act and with Section 2-105 of the
Illinois Human Rights Act.
(6) The performance criteria.
(7) The evaluation criteria for each phase of the
solicitation. Price may not be used as a factor in the
evaluation of Phase I proposals.
(8) The number of entities that will be considered for
the technical and cost evaluation phase.
(c) The forest preserve district or conservation district
may include any other relevant information that it chooses to
supply. The design-build entity shall be entitled to rely upon
the accuracy of this documentation in the development of its
proposal.
(d) The date that proposals are due must be at least 21
calendar days after the date of the issuance of the request for
proposal. In the event the cost of the project is estimated to
exceed $12,000,000, then the proposal due date must be at
least 28 calendar days after the date of the issuance of the
request for proposal. The forest preserve district or

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conservation district shall include in the request for
proposal a minimum of 30 days to develop the Phase II
submissions after the selection of entities from the Phase I
evaluation is completed.
(Source: P.A. 102-460, eff. 6-1-22.)
(70 ILCS 860/25)
Sec. 25. Procedures for selection.
(a) The forest preserve district or conservation district
must use a two-phase procedure for the selection of the
successful design-build entity. Phase I of the procedure will
evaluate and shortlist the design-build entities based on
qualifications, and Phase II will evaluate the technical and
cost proposals.
(b) The forest preserve district or conservation district
shall include in the request for proposal the evaluating
factors to be used in Phase I. These factors are in addition to
any prequalification requirements of design-build entities
that the forest preserve district or conservation district has
set forth. Each request for proposal shall establish the
relative importance assigned to each evaluation factor and
subfactor, including any weighting of criteria to be employed
by the forest preserve district or conservation district. The
forest preserve district or conservation district must
maintain a record of the evaluation scoring to be disclosed in
the event of a protest regarding the solicitation.

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The forest preserve district or conservation district
shall include the following criteria in every Phase I
evaluation of design-build entities: (i) experience of
personnel; (ii) successful experience with similar project
types; (iii) financial capability; (iv) timeliness of past
performance; (v) experience with similarly sized projects;
(vi) successful reference checks of the firm; (vii) commitment
to assign personnel for the duration of the project and
qualifications of the entity's consultants; and (viii) ability
or past performance in meeting or exhausting good faith
efforts to meet the utilization goals for business enterprises
established in the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act and with Section
2-105 of the Illinois Human Rights Act. The forest preserve
district or conservation district may include any additional
relevant criteria in Phase I that it deems necessary for a
proper qualification review.
The forest preserve district or conservation district may
not consider any design-build entity for evaluation or award
if the entity has any pecuniary interest in the project or has
other relationships or circumstances, including, but not
limited to, long-term leasehold, mutual performance, or
development contracts with the forest preserve district or
conservation district, that may give the design-build entity a
financial or tangible advantage over other design-build
entities in the preparation, evaluation, or performance of the

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design-build contract or that create the appearance of
impropriety. No proposal shall be considered that does not
include an entity's plan to comply with the requirements
established in the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act, for both the
design and construction areas of performance, and with Section
2-105 of the Illinois Human Rights Act.
Upon completion of the qualifications evaluation, the
forest preserve district or conservation district shall create
a shortlist of the most highly qualified design-build
entities. The forest preserve district or conservation
district, in its discretion, is not required to shortlist the
maximum number of entities as identified for Phase II
evaluation, provided that no less than 2 design-build entities
nor more than 6 are selected to submit Phase II proposals.
The forest preserve district or conservation district
shall notify the entities selected for the shortlist in
writing. This notification shall commence the period for the
preparation of the Phase II technical and cost evaluations.
The forest preserve district or conservation district must
allow sufficient time for the shortlist entities to prepare
their Phase II submittals considering the scope and detail
requested by the forest preserve district or conservation
district.
(c) The forest preserve district or conservation district
shall include in the request for proposal the evaluating

SB0238 - 478 - LRB103 24882 DTM 51215 b
factors to be used in the technical and cost submission
components of Phase II. Each request for proposal shall
establish, for both the technical and cost submission
components of Phase II, the relative importance assigned to
each evaluation factor and subfactor, including any weighting
of criteria to be employed by the forest preserve district or
conservation district. The forest preserve district or
conservation district must maintain a record of the evaluation
scoring to be disclosed in the event of a protest regarding the
solicitation.
The forest preserve district or conservation district
shall include the following criteria in every Phase II
technical evaluation of design-build entities: (i) compliance
with objectives of the project; (ii) compliance of proposed
services to the request for proposal requirements; (iii)
quality of products or materials proposed; (iv) quality of
design parameters; (v) design concepts; (vi) innovation in
meeting the scope and performance criteria; and (vii)
constructability of the proposed project. The forest preserve
district or conservation district may include any additional
relevant technical evaluation factors it deems necessary for
proper selection.
The forest preserve district or conservation district
shall include the following criteria in every Phase II cost
evaluation: the total project cost, the construction costs,
and the time of completion. The forest preserve or

SB0238 - 479 - LRB103 24882 DTM 51215 b
conservation district may include any additional relevant
technical evaluation factors it deems necessary for proper
selection. The total project cost criteria weighting weighing
factor shall not exceed 30%.
The forest preserve or conservation district shall
directly employ or retain a licensed design professional or a
public art designer to evaluate the technical and cost
submissions to determine if the technical submissions are in
accordance with generally accepted industry standards.
Upon completion of the technical submissions and cost
submissions evaluation, the forest preserve or conservation
district may award the design-build contract to the highest
overall ranked entity.
(Source: P.A. 102-460, eff. 6-1-22; revised 2-28-22.)
(70 ILCS 860/45)
Sec. 45. Reports and evaluation. At the end of every 6
month period following the contract award, and again prior to
final contract payout and closure, a selected design-build
entity shall detail, in a written report submitted to the
forest preserve or conservation district, its efforts and
success in implementing the entity's plan to comply with the
utilization goals for business enterprises established in the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act and the provisions of Section
2-105 of the Illinois Human Rights Act.

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(Source: P.A. 102-460, eff. 6-1-22.)
Section 145. The Illinois Sports Facilities Authority Act
is amended by changing Section 9 as follows:
(70 ILCS 3205/9) (from Ch. 85, par. 6009)
Sec. 9. Duties. In addition to the powers set forth
elsewhere in this Act, subject to the terms of any agreements
with the holders of the Authority's bonds or notes, the
Authority shall:
(1) Comply with all zoning, building, and land use
controls of the municipality within which is located any
stadium facility owned by the Authority or for which the
Authority provides financial assistance.
(2) With respect to a facility owned or to be owned by
the Authority, enter or have entered into a management
agreement with a tenant of the Authority to operate the
facility that requires the tenant to operate the facility
for a period at least as long as the term of any bonds
issued to finance the development, establishment,
construction, erection, acquisition, repair,
reconstruction, remodeling, adding to, extension,
improvement, equipping, operation, and maintenance of the
facility. Such agreement shall contain appropriate and
reasonable provisions with respect to termination, default
and legal remedies.

SB0238 - 481 - LRB103 24882 DTM 51215 b
(3) With respect to a facility owned or to be owned by
a governmental owner other than the Authority, enter into
an assistance agreement with either a governmental owner
of a facility or its tenant, or both, that requires the
tenant, or if the tenant is not a party to the assistance
agreement requires the governmental owner to enter into an
agreement with the tenant that requires the tenant to use
the facility for a period at least as long as the term of
any bonds issued to finance the reconstruction,
renovation, remodeling, extension or improvement of all or
substantially all of the facility.
(4) Create and maintain a separate financial reserve
for repair and replacement of capital assets of any
facility owned by the Authority or for which the Authority
provides financial assistance and deposit into this
reserve not less than $1,000,000 per year for each such
facility beginning at such time as the Authority and the
tenant, or the Authority and a governmental owner of a
facility, as applicable, shall agree.
(5) In connection with prequalification of general
contractors for the construction of a new stadium facility
or the reconstruction, renovation, remodeling, extension,
or improvement of all or substantially all of an existing
facility, the Authority shall require submission of a
commitment detailing how the general contractor will
expend 30% 25% or more of the dollar value of the general

SB0238 - 482 - LRB103 24882 DTM 51215 b
contract with one or more minority-owned businesses,
women-owned businesses, veteran-owned businesses, and
businesses owned by persons with a disability and 5% or
more of the dollar value with one or more women-owned
businesses. This commitment may be met by contractor's
status as a minority-owned business, businesses or
women-owned business businesses, veteran-owned business,
or business owned by a person with a disability, by a joint
venture or by subcontracting a portion of the work with or
by purchasing materials for the work from one or more such
businesses, or by any combination thereof. Any contract
with the general contractor for construction of the new
stadium facility and any contract for the reconstruction,
renovation, remodeling, adding to, extension or
improvement of all or substantially all of an existing
facility shall require the general contractor to meet the
foregoing obligations and shall require monthly reporting
to the Authority with respect to the status of the
implementation of the contractor's affirmative action plan
and compliance with that plan. This report shall be filed
with the General Assembly. The Authority shall establish
and maintain an affirmative action program designed to
promote equal employment opportunity which specifies the
goals and methods for increasing participation by
minorities and women in a representative mix of job
classifications required to perform the respective

SB0238 - 483 - LRB103 24882 DTM 51215 b
contracts. The Authority shall file a report before March
1 of each year with the General Assembly detailing its
implementation of this paragraph. The terms
"minority-owned business businesses", "women-owned
business businesses", veteran-owned business, and
"business owned by a person with a disability" have the
meanings given to those terms in the Business Enterprise
for Minorities, Women, Veterans, and Persons with
Disabilities Act.
(6) Provide for the construction of any new facility
pursuant to one or more contracts which require delivery
of a completed facility at a fixed maximum price to be
insured or guaranteed by a third party determined by the
Authority to be financially capable of causing completion
of such construction of the new facility.
In connection with any assistance agreement with a
governmental owner that provides financial assistance for a
facility to be used by a National Football League team, the
assistance agreement shall provide that the Authority or its
agent shall enter into the contract or contracts for the
design and construction services or design/build services for
such facility and thereafter transfer its rights and
obligations under the contract or contracts to the
governmental owner of the facility. In seeking parties to
provide design and construction services or design/build
services with respect to such facility, the Authority may use

SB0238 - 484 - LRB103 24882 DTM 51215 b
such procurement procedures as it may determine, including,
without limitation, the selection of design professionals and
construction managers or design/builders as may be required by
a team that is at risk, in whole or in part, for the cost of
design and construction of the facility.
An assistance agreement may not provide, directly or
indirectly, for the payment to the Chicago Park District of
more than a total of $10,000,000 on account of the District's
loss of property or revenue in connection with the renovation
of a facility pursuant to the assistance agreement.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 150. The Downstate Illinois Sports Facilities
Authority Act is amended by changing Section 40 as follows:
(70 ILCS 3210/40)
Sec. 40. Duties.
(a) In addition to the powers set forth elsewhere in this
Act, subject to the terms of any agreements with the holders of
the Authority's evidences of indebtedness, the Authority shall
do the following:
(1) Comply with all zoning, building, and land use
controls of the municipality within which is located any
stadium facility owned by the Authority or for which the
Authority provides financial assistance.
(2) Enter into a loan agreement with an owner of a

SB0238 - 485 - LRB103 24882 DTM 51215 b
facility to finance the acquisition, construction,
maintenance, or rehabilitation of the facility. The
agreement shall contain appropriate and reasonable
provisions with respect to termination, default, and legal
remedies. The loan may be at below-market interest rates.
(3) Create and maintain a financial reserve for repair
and replacement of capital assets.
(b) In a loan agreement for the construction of a new
facility, in connection with prequalification of general
contractors for construction of the facility, the Authority
shall require that the owner of the facility require
submission of a commitment detailing how the general
contractor will expend 30% 25% or more of the dollar value of
the general contract with one or more minority-owned
businesses, women-owned businesses, veteran-owned businesses,
or businesses owned by persons with a disability and 5% or more
of the dollar value with one or more women-owned businesses.
This commitment may be met by contractor's status as a
minority-owned business, businesses or women-owned business,
businesses, veteran-owned business, or a business owned by a
person with a disability by a joint venture, or by
subcontracting a portion of the work with or by purchasing
materials for the work from one or more such businesses, or by
any combination thereof. Any contract with the general
contractor for construction of the new facility shall require
the general contractor to meet the foregoing obligations and

SB0238 - 486 - LRB103 24882 DTM 51215 b
shall require monthly reporting to the Authority with respect
to the status of the implementation of the contractor's
affirmative action plan and compliance with that plan. This
report shall be filed with the General Assembly. The Authority
shall require that the facility owner establish and maintain
an affirmative action program designed to promote equal
employment opportunity and that specifies the goals and
methods for increasing participation by minorities and women
in a representative mix of job classifications required to
perform the respective contracts. The Authority shall file a
report before March 1 of each year with the General Assembly
detailing its implementation of this subsection. The terms
"minority-owned businesses", and "women-owned businesses",
"veteran-owned business", and "business owned by persons with
a disability" have the meanings provided in the Business
Enterprise for Minorities, Women, Veterans, and Persons with
Disabilities Act.
(c) With respect to a facility owned or to be owned by the
Authority, enter or have entered into a management agreement
with a tenant of the Authority to operate the facility that
requires the tenant to operate the facility for a period at
least as long as the term of any bonds issued to finance the
development, establishment, construction, erection,
acquisition, repair, reconstruction, remodeling, adding to,
extension, improvement, equipping, operation, and maintenance
of the facility. Such agreement shall contain appropriate and

SB0238 - 487 - LRB103 24882 DTM 51215 b
reasonable provisions with respect to termination, default,
and legal remedies.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 155. The Metropolitan Transit Authority Act is
amended by changing Section 12c as follows:
(70 ILCS 3605/12c)
Sec. 12c. Retiree Benefits Bonds and Notes.
(a) In addition to all other bonds or notes that it is
authorized to issue, the Authority is authorized to issue its
bonds or notes for the purposes of providing funds for the
Authority to make the deposits described in Section 12c(b)(1)
and (2), for refunding any bonds authorized to be issued under
this Section, as well as for the purposes of paying costs of
issuance, obtaining bond insurance or other credit enhancement
or liquidity facilities, paying costs of obtaining related
swaps as authorized in the Bond Authorization Act ("Swaps"),
providing a debt service reserve fund, paying Debt Service (as
defined in paragraph (i) of this Section 12c), and paying all
other costs related to any such bonds or notes.
(b)(1) After its receipt of a certified copy of a report of
the Auditor General of the State of Illinois meeting the
requirements of Section 3-2.3 of the Illinois State Auditing
Act, the Authority may issue $1,348,550,000 aggregate original
principal amount of bonds and notes. After payment of the

SB0238 - 488 - LRB103 24882 DTM 51215 b
costs of issuance and necessary deposits to funds and accounts
established with respect to debt service, the net proceeds of
such bonds or notes shall be deposited only in the Retirement
Plan for Chicago Transit Authority Employees and used only for
the purposes required by Section 22-101 of the Illinois
Pension Code. Provided that no less than $1,110,500,000 has
been deposited in the Retirement Plan, remaining proceeds of
bonds issued under this subparagraph (b)(1) may be used to pay
costs of issuance and make necessary deposits to funds and
accounts with respect to debt service for bonds and notes
issued under this subparagraph or subparagraph (b)(2).
(2) After its receipt of a certified copy of a report of
the Auditor General of the State of Illinois meeting the
requirements of Section 3-2.3 of the Illinois State Auditing
Act, the Authority may issue $639,680,000 aggregate original
principal amount of bonds and notes. After payment of the
costs of issuance and necessary deposits to funds and accounts
established with respect to debt service, the net proceeds of
such bonds or notes shall be deposited only in the Retiree
Health Care Trust and used only for the purposes required by
Section 22-101B of the Illinois Pension Code. Provided that no
less than $528,800,000 has been deposited in the Retiree
Health Care Trust, remaining proceeds of bonds issued under
this subparagraph (b)(2) may be used to pay costs of issuance
and make necessary deposits to funds and accounts with respect
to debt service for bonds and notes issued under this

SB0238 - 489 - LRB103 24882 DTM 51215 b
subparagraph or subparagraph (b)(1).
(3) In addition, refunding bonds are authorized to be
issued for the purpose of refunding outstanding bonds or notes
issued under this Section 12c.
(4) The bonds or notes issued under 12c(b)(1) shall be
issued as soon as practicable after the Auditor General issues
the report provided in Section 3-2.3(b) of the Illinois State
Auditing Act. The bonds or notes issued under 12c(b)(2) shall
be issued as soon as practicable after the Auditor General
issues the report provided in Section 3-2.3(c) of the Illinois
State Auditing Act.
(5) With respect to bonds and notes issued under
subparagraph (b), scheduled aggregate annual payments of
interest or deposits into funds and accounts established for
the purpose of such payment shall commence within one year
after the bonds and notes are issued. With respect to
principal and interest, scheduled aggregate annual payments of
principal and interest or deposits into funds and accounts
established for the purpose of such payment shall be not less
than 70% in 2009, 80% in 2010, and 90% in 2011, respectively,
of scheduled payments or deposits of principal and interest in
2012 and shall be substantially equal beginning in 2012 and
each year thereafter. For purposes of this subparagraph (b),
"substantially equal" means that debt service in any full year
after calendar year 2011 is not more than 115% of debt service
in any other full year after calendar year 2011 during the term

SB0238 - 490 - LRB103 24882 DTM 51215 b
of the bonds or notes. For the purposes of this subsection (b),
with respect to bonds and notes that bear interest at a
variable rate, interest shall be assumed at a rate equal to the
rate for United States Treasury Securities - State and Local
Government Series for the same maturity, plus 75 basis points.
If the Authority enters into a Swap with a counterparty
requiring the Authority to pay a fixed interest rate on a
notional amount, and the Authority has made a determination
that such Swap was entered into for the purpose of providing
substitute interest payments for variable interest rate bonds
or notes of a particular maturity or maturities in a principal
amount equal to the notional amount of the Swap, then during
the term of the Swap for purposes of any calculation of
interest payable on such bonds or notes, the interest rate on
the bonds or notes of such maturity or maturities shall be
determined as if such bonds or notes bore interest at the fixed
interest rate payable by the Authority under such Swap.
(6) No bond or note issued under this Section 12c shall
mature later than December 31, 2040.
(c) The Chicago Transit Board shall provide for the
issuance of bonds or notes as authorized in this Section 12c by
the adoption of an ordinance. The ordinance, together with the
bonds or notes, shall constitute a contract among the
Authority, the owners from time to time of the bonds or notes,
any bond trustee with respect to the bonds or notes, any
related credit enhancer and any provider of any related Swaps.

SB0238 - 491 - LRB103 24882 DTM 51215 b
(d) The Authority is authorized to cause the proceeds of
the bonds or notes, and any interest or investment earnings on
the bonds or notes, and of any Swaps, to be invested until the
proceeds and any interest or investment earnings have been
deposited with the Retirement Plan or the Retiree Health Care
Trust.
(e) Bonds or notes issued pursuant to this Section 12c may
be general obligations of the Authority, to which shall be
pledged the full faith and credit of the Authority, or may be
obligations payable solely from particular sources of funds
all as may be provided in the authorizing ordinance. The
authorizing ordinance for the bonds and notes, whether or not
general obligations of the Authority, may provide for the Debt
Service (as defined in paragraph (i) of this Section 12c) to
have a claim for payment from particular sources of funds,
including, without limitation, amounts to be paid to the
Authority or a bond trustee. The authorizing ordinance may
provide for the means by which the bonds or notes (and any
related Swaps) may be secured, which may include, a pledge of
any revenues or funds of the Authority from whatever source
which may by law be utilized for paying Debt Service. In
addition to any other security, upon the written approval of
the Regional Transportation Authority by the affirmative vote
of 12 of its then Directors, the ordinance may provide a
specific pledge or assignment of and lien on or security
interest in amounts to be paid to the Authority by the Regional

SB0238 - 492 - LRB103 24882 DTM 51215 b
Transportation Authority and direct payment thereof to the
bond trustee for payment of Debt Service with respect to the
bonds or notes, subject to the provisions of existing lease
agreements of the Authority with any public building
commission. The authorizing ordinance may also provide a
specific pledge or assignment of and lien on or security
interest in and direct payment to the trustee of all or a
portion of the moneys otherwise payable to the Authority from
the City of Chicago pursuant to an intergovernmental agreement
with the Authority to provide financial assistance to the
Authority. Any such pledge, assignment, lien or security
interest for the benefit of owners of bonds or notes shall be
valid and binding from the time the bonds or notes are issued,
without any physical delivery or further act, and shall be
valid and binding as against and prior to the claims of all
other parties having claims of any kind against the Authority
or any other person, irrespective of whether such other
parties have notice of such pledge, assignment, lien or
security interest, all as provided in the Local Government
Debt Reform Act, as it may be amended from time to time. The
bonds or notes of the Authority issued pursuant to this
Section 12c shall have such priority of payment and as to their
claim for payment from particular sources of funds, including
their priority with respect to obligations of the Authority
issued under other Sections of this Act, all as shall be
provided in the ordinances authorizing the issuance of the

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bonds or notes. The ordinance authorizing the issuance of any
bonds or notes under this Section may provide for the creation
of, deposits in, and regulation and disposition of sinking
fund or reserve accounts relating to those bonds or notes and
related agreements. The ordinance authorizing the issuance of
any such bonds or notes authorized under this Section 12c may
contain provisions for the creation of a separate fund to
provide for the payment of principal of and interest on those
bonds or notes and related agreements. The ordinance may also
provide limitations on the issuance of additional bonds or
notes of the Authority.
(f) Bonds or notes issued under this Section 12c shall not
constitute an indebtedness of the Regional Transportation
Authority, the State of Illinois, or of any other political
subdivision of or municipality within the State, except the
Authority.
(g) The ordinance of the Chicago Transit Board authorizing
the issuance of bonds or notes pursuant to this Section 12c may
provide for the appointment of a corporate trustee (which may
be any trust company or bank having the powers of a trust
company within Illinois) with respect to bonds or notes issued
pursuant to this Section 12c. The ordinance shall prescribe
the rights, duties, and powers of the trustee to be exercised
for the benefit of the Authority and the protection of the
owners of bonds or notes issued pursuant to this Section 12c.
The ordinance may provide for the trustee to hold in trust,

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invest and use amounts in funds and accounts created as
provided by the ordinance with respect to the bonds or notes in
accordance with this Section 12c. The Authority may apply, as
it shall determine, any amounts received upon the sale of the
bonds or notes to pay any Debt Service on the bonds or notes.
The ordinance may provide for a trust indenture to set forth
terms of, sources of payment for and security for the bonds and
notes.
(h) The State of Illinois pledges to and agrees with the
owners of the bonds or notes issued pursuant to Section 12c
that the State of Illinois will not limit the powers vested in
the Authority by this Act to pledge and assign its revenues and
funds as security for the payment of the bonds or notes, or
vested in the Regional Transportation Authority by the
Regional Transportation Authority Act or this Act, so as to
materially impair the payment obligations of the Authority
under the terms of any contract made by the Authority with
those owners or to materially impair the rights and remedies
of those owners until those bonds or notes, together with
interest and any redemption premium, and all costs and
expenses in connection with any action or proceedings by or on
behalf of such owners are fully met and discharged. The
Authority is authorized to include these pledges and
agreements of the State of Illinois in any contract with
owners of bonds or notes issued pursuant to this Section 12c.
(i) For purposes of this Section, "Debt Service" with

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respect to bonds or notes includes, without limitation,
principal (at maturity or upon mandatory redemption),
redemption premium, interest, periodic, upfront, and
termination payments on Swaps, fees for bond insurance or
other credit enhancement, liquidity facilities, the funding of
bond or note reserves, bond trustee fees, and all other costs
of providing for the security or payment of the bonds or notes.
(j) The Authority shall adopt a procurement program with
respect to contracts relating to the following service
providers in connection with the issuance of debt for the
benefit of the Retirement Plan for Chicago Transit Authority
Employees: underwriters, bond counsel, financial advisors, and
accountants. The program shall include goals for the payment
of not less than 30% of the total dollar value of the fees from
these contracts to minority-owned businesses, and women-owned
businesses, veteran-owned businesses, and businesses owned by
persons with a disability as defined in the Business
Enterprise for Minorities, Women, Veterans, and Persons with
Disabilities Act. The Authority shall conduct outreach to
minority-owned businesses, and women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
a disability. Outreach shall include, but is not limited to,
advertisements in periodicals and newspapers, mailings, and
other appropriate media. The Authority shall submit to the
General Assembly a comprehensive report that shall include, at
a minimum, the details of the procurement plan, outreach

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efforts, and the results of the efforts to achieve goals for
the payment of fees. The service providers selected by the
Authority pursuant to such program shall not be subject to
approval by the Regional Transportation Authority, and the
Regional Transportation Authority's approval pursuant to
subsection (e) of this Section 12c related to the issuance of
debt shall not be based in any way on the service providers
selected by the Authority pursuant to this Section.
(k) No person holding an elective office in this State,
holding a seat in the General Assembly, serving as a director,
trustee, officer, or employee of the Regional Transportation
Authority or the Chicago Transit Authority, including the
spouse or minor child of that person, may receive a legal,
banking, consulting, or other fee related to the issuance of
any bond issued by the Chicago Transit Authority pursuant to
this Section.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 160. The School Code is amended by changing
Section 10-20.44 as follows:
(105 ILCS 5/10-20.44)
Sec. 10-20.44. Report on contracts.
(a) This Section applies to all school districts,
including a school district organized under Article 34 of this
Code.

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(b) A school board must list on the district's Internet
website, if any, all contracts over $25,000 and any contract
that the school board enters into with an exclusive bargaining
representative.
(c) Each year, in conjunction with the submission of the
Statement of Affairs to the State Board of Education prior to
December 1, provided for in Section 10-17, each school
district shall submit to the State Board of Education an
annual report on all contracts over $25,000 awarded by the
school district during the previous fiscal year. The report
shall include at least the following:
(1) the total number of all contracts awarded by the
school district;
(2) the total value of all contracts awarded;
(3) the number of contracts awarded to minority-owned
businesses, women-owned businesses, veteran-owned
businesses, and businesses owned by persons with
disabilities, as defined in the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act, and locally owned businesses; and
(4) the total value of contracts awarded to
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons
with disabilities, as defined in the Business Enterprise
for Minorities, Women, Veterans, and Persons with
Disabilities Act, and locally owned businesses.

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The report shall be made available to the public,
including publication on the school district's Internet
website, if any.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 165. The Public University Energy Conservation Act
is amended by changing Sections 3 and 5-10 as follows:
(110 ILCS 62/3)
Sec. 3. Applicable laws. Other State laws and related
administrative requirements apply to this Act, including, but
not limited to, the following laws and related administrative
requirements: the Illinois Human Rights Act, the Prevailing
Wage Act, the Public Construction Bond Act, the Public Works
Preference Act (repealed on June 16, 2010 by Public Act
96-929), the Employment of Illinois Workers on Public Works
Act, the Freedom of Information Act, the Open Meetings Act,
the Illinois Architecture Practice Act of 1989, the
Professional Engineering Practice Act of 1989, the Structural
Engineering Practice Act of 1989, the Architectural,
Engineering, and Land Surveying Qualifications Based Selection
Act, the Public Contract Fraud Act, the Business Enterprise
for Minorities, Women, Veterans, and Persons with Disabilities
Act, and the Public Works Employment Discrimination Act.
(Source: P.A. 100-391, eff. 8-25-17.)

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(110 ILCS 62/5-10)
Sec. 5-10. Energy conservation measure.
(a) "Energy conservation measure" means any improvement,
repair, alteration, or betterment of any building or facility,
subject to all applicable building codes, owned or operated by
a public university or any equipment, fixture, or furnishing
to be added to or used in any such building or facility that is
designed to reduce energy consumption or operating costs, and
may include, without limitation, one or more of the following:
(1) Insulation of the building structure or systems
within the building.
(2) Storm windows or doors, caulking or
weatherstripping, multiglazed windows or doors, heat
absorbing or heat reflective glazed and coated window or
door systems, additional glazing, reductions in glass
area, or other window and door system modifications that
reduce energy consumption.
(3) Automated or computerized energy control systems.
(4) Heating, ventilating, or air conditioning system
modifications or replacements.
(5) Replacement or modification of lighting fixtures
to increase the energy efficiency of the lighting system
without increasing the overall illumination of a facility,
unless an increase in illumination is necessary to conform
to the applicable State or local building code for the
lighting system after the proposed modifications are made.

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(6) Energy recovery systems.
(7) Energy conservation measures that provide
long-term operating cost reductions.
(b) From the effective date of this amendatory Act of the
96th General Assembly until January 1, 2015, "energy
conservation measure" includes a renewable energy center pilot
project at Eastern Illinois University, provided that:
(1) the University signs a partnership contract with a
qualified energy conservation measure provider as provided
in this Act;
(2) the University has responsibility for the
qualified provider's actions with regard to applicable
laws;
(3) the University obtains a performance bond in
accordance with this Act;
(4) the University and the qualified provider follow
all aspects of the Prevailing Wage Act as provided by this
Act;
(5) the University and the qualified provider use an
approved list of firms from the Capital Development Board
(CDB), unless the University requires services that are
not typically performed by the firms on CDB's list;
(6) the University provides monthly progress reports
to the Procurement Policy Board, and the University allows
a representative from CDB to monitor the project, provided
that such involvement is at no cost to the University;

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(7) the University requires the qualified provider to
follow the provisions of the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act and the Public Works Employment Discrimination Act as
provided in this Act;
(8) the University agrees to award new building
construction work to a responsible bidder, as defined in
Section 30-22 of the Illinois Procurement Code;
(9) the University includes in its contract with the
qualified provider a requirement that the qualified
provider name the sub-contractors that it will use, and
the qualified provider may not change these without the
University's written approval;
(10) the University follows, to the extent possible,
the Design-Build Procurement Act for construction of the
project, taking into consideration the current status of
the project; for purposes of this Act, the definition of
"State construction agency" in the Design-Build
Procurement Act means Eastern Illinois University for the
purpose of this project;
(11) the University follows, to the extent possible,
the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act;
(12) the University requires all engineering,
architecture, and design work related to the installation
or modification of facilities be performed by design

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professionals licensed by the State of Illinois and
professional design firms registered in the State of
Illinois; and
(13) the University produces annual reports and a
final report describing the project upon completion and
files the reports with the Procurement Policy Board, CDB,
and the General Assembly.
The provisions of this subsection (b), other than this
sentence, are inoperative after January 1, 2015.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 170. The Illinois State University Law is amended
by changing Section 20-115 as follows:
(110 ILCS 675/20-115)
Sec. 20-115. Illinois Institute for Entrepreneurship
Education.
(a) There is created, effective July 1, 1997, within the
State at Illinois State University, the Illinois Institute for
Entrepreneurship Education, hereinafter referred to as the
Institute.
(b) The Institute created under this Section shall
commence its operations on July 1, 1997 and shall have a board
composed of 15 members representative of education, commerce
and industry, government, or labor, appointed as follows: 2
members shall be appointees of the Governor, one of whom shall

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be a minority or woman person as defined in Section 2 of the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act; one member shall be an
appointee of the President of the Senate; one member shall be
an appointee of the Minority Leader of the Senate; one member
shall be an appointee of the Speaker of the House of
Representatives; one member shall be an appointee of the
Minority Leader of the House of Representatives; 2 members
shall be appointees of Illinois State University; one member
shall be an appointee of the Board of Higher Education; one
member shall be an appointee of the State Board of Education;
one member shall be an appointee of the Department of Commerce
and Economic Opportunity; one member shall be an appointee of
the Illinois chapter of Economics America; and 3 members shall
be appointed by majority vote of the other 12 appointed
members to represent business owner-entrepreneurs. Each member
shall have expertise and experience in the area of
entrepreneurship education, including small business and
entrepreneurship. The majority of voting members must be from
the private sector. The members initially appointed to the
board of the Institute created under this Section shall be
appointed to take office on July 1, 1997 and shall by lot
determine the length of their respective terms as follows: 5
members shall be selected by lot to serve terms of one year, 5
members shall be selected by lot to serve terms of 2 years, and
5 members shall be selected by lot to serve terms of 3 years.

SB0238 - 504 - LRB103 24882 DTM 51215 b
Subsequent appointees shall each serve terms of 3 years. The
board shall annually select a chairperson from among its
members. Each board member shall serve without compensation
but shall be reimbursed for expenses incurred in the
performance of his or her duties.
(c) The purpose of the Institute shall be to foster the
growth and development of entrepreneurship education in the
State of Illinois. The Institute shall help remedy the
deficiencies in the preparation of entrepreneurship education
teachers, increase the quality and quantity of
entrepreneurship education programs, improve instructional
materials, and prepare personnel to serve as leaders and
consultants in the field of entrepreneurship education and
economic development. The Institute shall promote
entrepreneurship as a career option, promote and support the
development of innovative entrepreneurship education materials
and delivery systems, promote business, industry, and
education partnerships, promote collaboration and involvement
in entrepreneurship education programs, encourage and support
in-service and preservice teacher education programs within
various educational systems, and develop and distribute
relevant materials. The Institute shall provide a framework
under which the public and private sectors may work together
toward entrepreneurship education goals. These goals shall be
achieved by bringing together programs that have an impact on
entrepreneurship education to achieve coordination among

SB0238 - 505 - LRB103 24882 DTM 51215 b
agencies and greater efficiency in the expenditure of funds.
(d) Beginning July 1, 1997, the Institute shall have the
following powers subject to State and Illinois State
University Board of Trustees regulations and guidelines:
(1) To employ and determine the compensation of an
executive director and such staff as it deems necessary;
(2) To own property and expend and receive funds and
generate funds;
(3) To enter into agreements with public and private
entities in the furtherance of its purpose; and
(4) To request and receive the cooperation and
assistance of all State departments and agencies in the
furtherance of its purpose.
(e) The board of the Institute shall be a policy making
body with the responsibility for planning and developing
Institute programs. The Institute, through the Board of
Trustees of Illinois State University, shall annually report
to the Governor and General Assembly by January 31 as to its
activities and operations, including its findings and
recommendations.
(f) Beginning on July 1, 1997, the Institute created under
this Section shall be deemed designated by law as the
successor to the Illinois Institute for Entrepreneurship
Education, previously created and existing under Section
2-11.5 of the Public Community College Act until its abolition
on July 1, 1997 as provided in that Section. On July 1, 1997,

SB0238 - 506 - LRB103 24882 DTM 51215 b
all financial and other records of the Institute so abolished
and all of its property, whether real or personal, including
but not limited to all inventory and equipment, shall be
deemed transferred by operation of law to the Illinois
Institute for Entrepreneurship Education created under this
Section 20-115. The Illinois Institute for Entrepreneurship
Education created under this Section 20-115 shall have, with
respect to the predecessor Institute so abolished, all
authority, powers, and duties of a successor agency under
Section 10-15 of the Successor Agency Act.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 175. The Public Utilities Act is amended by
changing Sections 8-103B and 9-220 as follows:
(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,
transmission, and distribution infrastructure. It serves the

SB0238 - 507 - LRB103 24882 DTM 51215 b
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, Veterans, and Persons with
Disabilities 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
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,

SB0238 - 508 - LRB103 24882 DTM 51215 b
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 have opted out of subsections (a) through (j)
of this Section under paragraph (1) of 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
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;

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(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;
(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;

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(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
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 have opted out
of subsections (a) through (j) of this Section under paragraph
(1) of subsection (l) of this Section as averaged across the
calendar years 2014, 2015, and 2016, through the

SB0238 - 511 - LRB103 24882 DTM 51215 b
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
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

SB0238 - 512 - LRB103 24882 DTM 51215 b
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 that 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
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

SB0238 - 513 - LRB103 24882 DTM 51215 b
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 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
the sum of the annual consumption of customers that have opted
out of subsections (a) through (j) of this Section under
paragraph (1) of 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,

SB0238 - 514 - LRB103 24882 DTM 51215 b
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
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;

SB0238 - 515 - LRB103 24882 DTM 51215 b
(12) 1.7% deemed cumulative persisting annual savings
for the year ending December 31, 2029;
(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
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

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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 have opted out of subsections
(a) through (j) of this Section under paragraph (1) of
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
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;

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(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
goals every 5 years thereafter to ensure that 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

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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 this Section.
(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

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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,
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

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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.
(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

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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 as defined in paragraph (7.5)
of subsection (g) of this Section be met 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 Btus Btu's per

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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;
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 subsection

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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
requirement. Prior to installing an electrification measure,
the utility shall provide a customer with an estimate of the
impact of the new measure on the customer's average monthly
electric bill and total annual energy expenses.
(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

SB0238 - 524 - LRB103 24882 DTM 51215 b
cost-effective energy efficiency measures from units of local
government, municipal corporations, school districts, public
housing, and community college districts, 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 per year for
electric utilities that serve more than 3,000,000 retail
customers in the State and no less than $13,000,000 per year
for electric utilities that serve less 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. Investment in low-income whole-building weatherization
programs shall constitute a minimum of 80% of a utility's
total budget specifically dedicated to serving low-income
customers.

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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, the Illinois Solar for All Program, 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 invest in health and safety measures
appropriate and necessary for comprehensively weatherizing a
home or multifamily building, and shall implement a health and
safety fund of at least 15% of the total income-qualified
weatherization budget 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

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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.
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

SB0238 - 527 - LRB103 24882 DTM 51215 b
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 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 comprised of the
electric utilities subject to the requirements of this
Section, the gas utilities subject to the requirements of
Section 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.

SB0238 - 528 - LRB103 24882 DTM 51215 b
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
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 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 the Illinois Solar for All

SB0238 - 529 - LRB103 24882 DTM 51215 b
Program 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 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

SB0238 - 530 - LRB103 24882 DTM 51215 b
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.
(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

SB0238 - 531 - LRB103 24882 DTM 51215 b
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) 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

SB0238 - 532 - LRB103 24882 DTM 51215 b
(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
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

SB0238 - 533 - LRB103 24882 DTM 51215 b
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
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

SB0238 - 534 - LRB103 24882 DTM 51215 b
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
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

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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
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,

SB0238 - 536 - LRB103 24882 DTM 51215 b
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
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

SB0238 - 537 - LRB103 24882 DTM 51215 b
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
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

SB0238 - 538 - LRB103 24882 DTM 51215 b
(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
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

SB0238 - 539 - LRB103 24882 DTM 51215 b
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
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. Adm. 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

SB0238 - 540 - LRB103 24882 DTM 51215 b
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
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

SB0238 - 541 - LRB103 24882 DTM 51215 b
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
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

SB0238 - 542 - LRB103 24882 DTM 51215 b
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
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

SB0238 - 543 - LRB103 24882 DTM 51215 b
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
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

SB0238 - 544 - LRB103 24882 DTM 51215 b
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.
(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

SB0238 - 545 - LRB103 24882 DTM 51215 b
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
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) each of the following
conditions are met: (A) the plan's analysis and forecasts

SB0238 - 546 - LRB103 24882 DTM 51215 b
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 plan period. If there is
not clear and convincing evidence that 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.
(3) No later than March 1, 2025, each electric utility
shall file a 4-year energy efficiency plan commencing on
January 1, 2026 that is designed to achieve the cumulative

SB0238 - 547 - LRB103 24882 DTM 51215 b
persisting annual savings goals specified in paragraphs
(9) through (12) of subsection (b-5) of this Section or in
paragraphs (9) through (12) 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) 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 plan period. If there is
not clear and convincing evidence that 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

SB0238 - 548 - LRB103 24882 DTM 51215 b
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.
(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

SB0238 - 549 - LRB103 24882 DTM 51215 b
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. If there is
not clear and convincing evidence that 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. For those plans commencing on January 1,
2018, the Commission shall seek public comment on the
utility's plan and shall issue an order approving or

SB0238 - 550 - LRB103 24882 DTM 51215 b
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.
(g) In submitting proposed plans and funding levels under
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).

SB0238 - 551 - LRB103 24882 DTM 51215 b
(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
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

SB0238 - 552 - LRB103 24882 DTM 51215 b
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
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

SB0238 - 553 - LRB103 24882 DTM 51215 b
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 and for programs that
target low-income customers, 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
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

SB0238 - 554 - LRB103 24882 DTM 51215 b
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
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:

SB0238 - 555 - LRB103 24882 DTM 51215 b
(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
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

SB0238 - 556 - LRB103 24882 DTM 51215 b
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 paragraph 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%
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

SB0238 - 557 - LRB103 24882 DTM 51215 b
periods, 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
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

SB0238 - 558 - LRB103 24882 DTM 51215 b
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%
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

SB0238 - 559 - LRB103 24882 DTM 51215 b
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
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

SB0238 - 560 - LRB103 24882 DTM 51215 b
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 paragraph (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 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

SB0238 - 561 - LRB103 24882 DTM 51215 b
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
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 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

SB0238 - 562 - LRB103 24882 DTM 51215 b
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 (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
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.

SB0238 - 563 - LRB103 24882 DTM 51215 b
(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).
(B) For the period of January 1, 2026 through
December 31, 2029 and in all subsequent 4-year
periods, 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

SB0238 - 564 - LRB103 24882 DTM 51215 b
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
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

SB0238 - 565 - LRB103 24882 DTM 51215 b
subparagraph (C).
(D) If the applicable annual incremental goal was
reduced under paragraph (1), (2), (3), or (4) of
subsection (f) of this Section, then the following
adjustments shall be made to the calculations
described in subparagraphs (A), (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.
(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

SB0238 - 566 - LRB103 24882 DTM 51215 b
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 basis-point value or 8
basis-point value, as applicable, shall also be
modified, as 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.
(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

SB0238 - 567 - LRB103 24882 DTM 51215 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) 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

SB0238 - 568 - LRB103 24882 DTM 51215 b
calculation consistent with this Section.
The adjustments to the return on equity component
described in paragraphs (7) and (8) of this subsection (g)
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 promote workforce
equity and quality jobs.
(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
quarterly. 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

SB0238 - 569 - LRB103 24882 DTM 51215 b
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 4% of energy efficiency and
demand-response program revenue may be allocated for research,
development, or pilot deployment of new equipment or measures.
Electric utilities shall work with interested stakeholders to
formulate a plan for how these funds should be spent,
incorporate statewide approaches for these allocations, and
file a 4-year plan that demonstrates that collaboration. If a
utility files a request for modified annual energy savings
goals with the Commission, then a utility shall forgo spending
portfolio dollars on research and development proposals.
(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
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

SB0238 - 570 - LRB103 24882 DTM 51215 b
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
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

SB0238 - 571 - LRB103 24882 DTM 51215 b
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
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'

SB0238 - 572 - LRB103 24882 DTM 51215 b
bills.
(l) 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 eligible large private
energy customers that have chosen to opt out of multi-year
plans consistent with this subsection (1).
(1) For purposes of this subsection (l), "eligible
large private energy customer" means any retail customers,
except for federal, State, municipal, and other public
customers, of an electric utility that serves more than
3,000,000 retail customers, except for federal, State,
municipal and other public 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.
However, for a business entity with multiple sites located
in the State, where at least one of those sites qualifies
as an eligible large private energy customer, then any of
that business entity's sites, properly identified on a
form for notice, shall be considered eligible large
private energy customers for the purposes of this
subsection (l). A determination of whether this subsection

SB0238 - 573 - LRB103 24882 DTM 51215 b
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.
(2) Within 45 days after September 15, 2021 (the
effective date of Public Act 102-662) this amendatory Act
of the 102nd General Assembly, the Commission shall
prescribe the form for notice required for opting out of
energy efficiency programs. The notice must be submitted
to the retail electric utility 12 months before the next
energy efficiency planning cycle. However, within 120 days
after the Commission's initial issuance of the form for
notice, eligible large private energy customers may submit
a form for notice to an electric utility. The form for
notice for opting out of energy efficiency programs shall
include all of the following:
(A) a statement indicating that the customer has
elected to opt out;
(B) the account numbers for the customer accounts
to which the opt out shall apply;
(C) the mailing address associated with the
customer accounts identified under subparagraph (B);
(D) an American Society of Heating, Refrigerating,
and Air-Conditioning Engineers (ASHRAE) level 2 or

SB0238 - 574 - LRB103 24882 DTM 51215 b
higher audit report conducted by an independent
third-party expert identifying cost-effective energy
efficiency project opportunities that could be
invested in over the next 10 years. A retail customer
with specialized processes may utilize a self-audit
process in lieu of the ASHRAE audit;
(E) a description of the customer's plans to
reallocate the funds toward internal energy efficiency
efforts identified in the subparagraph (D) report,
including, but not limited to: (i) strategic energy
management or other programs, including descriptions
of targeted buildings, equipment and operations; (ii)
eligible energy efficiency measures; and (iii)
expected energy savings, itemized by technology. If
the subparagraph (D) audit report identifies that the
customer currently utilizes the best available energy
efficient technology, equipment, programs, and
operations, the customer may provide a statement that
more efficient technology, equipment, programs, and
operations are not reasonably available as a means of
satisfying this subparagraph (E); and
(F) the effective date of the opt out, which will
be the next January 1 following notice of the opt out.
(3) Upon receipt of a properly and timely noticed
request for opt out submitted by an eligible large private
energy customer, the retail electric utility shall grant

SB0238 - 575 - LRB103 24882 DTM 51215 b
the request, file the request with the Commission and,
beginning January 1 of the following year, the opted out
customer shall no longer be assessed the costs of the plan
and shall be prohibited from participating in that 4-year
plan cycle to give the retail utility the certainty to
design program plan proposals.
(4) Upon a customer's election to opt out under
paragraphs (1) and (2) of this subsection (l) and
commencing on the effective date of said opt out, the
account properly identified in the customer's notice under
paragraph (2) shall not be subject to any cost recovery
and shall not be eligible to participate in, or directly
benefit from, compliance with energy efficiency cumulative
persisting savings requirements under subsections (a)
through (j).
(5) A utility's cumulative persisting annual savings
targets will exclude any opted out load.
(6) The request to opt out is only valid for the
requested plan cycle. An eligible large private energy
customer must also request to opt out for future energy
plan cycles, otherwise the customer will be included in
the future energy plan cycle.
(m) Notwithstanding the requirements of this Section, as
part of a proceeding to approve a multi-year plan under
subsections (f) and (g) of this Section if the multi-year plan
has been designed to maximize savings, but does not meet the

SB0238 - 576 - LRB103 24882 DTM 51215 b
cost cap limitations of this Section, 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) 4% for each of the 4 years beginning January 1,
2022,
(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
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

SB0238 - 577 - LRB103 24882 DTM 51215 b
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 that have
opted out of 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.
(n) A utility shall take advantage of the efficiencies
available through existing Illinois Home Weatherization
Assistance Program infrastructure and services, such as
enrollment, marketing, quality assurance and implementation,
which can reduce the need for similar services at a lower cost
than utility-only programs, subject to capacity constraints at
community action agencies, for both single-family and
multifamily weatherization services, to the extent Illinois
Home Weatherization Assistance Program community action
agencies provide multifamily services. A utility's plan shall
demonstrate that in formulating annual weatherization budgets,
it has sought input and coordination with community action
agencies regarding agencies' capacity to expand and maximize

SB0238 - 578 - LRB103 24882 DTM 51215 b
Illinois Home Weatherization Assistance Program delivery using
the ratepayer dollars collected under this Section.
(Source: P.A. 101-81, eff. 7-12-19; 102-662, eff. 9-15-21;
revised 2-28-22.)
(220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
Sec. 9-220. Rate changes based on changes in fuel costs.
(a) Notwithstanding the provisions of Section 9-201, the
Commission may authorize the increase or decrease of rates and
charges based upon changes in the cost of fuel used in the
generation or production of electric power, changes in the
cost of purchased power, or changes in the cost of purchased
gas through the application of fuel adjustment clauses or
purchased gas adjustment clauses. The Commission may also
authorize the increase or decrease of rates and charges based
upon expenditures or revenues resulting from the purchase or
sale of emission allowances created under the federal Clean
Air Act Amendments of 1990, through such fuel adjustment
clauses, as a cost of fuel. For the purposes of this paragraph,
cost of fuel used in the generation or production of electric
power shall include the amount of any fees paid by the utility
for the implementation and operation of a process for the
desulfurization of the flue gas when burning high sulfur coal
at any location within the State of Illinois irrespective of
the attainment status designation of such location; but shall
not include transportation costs of coal (i) except to the

SB0238 - 579 - LRB103 24882 DTM 51215 b
extent that for contracts entered into on and after the
effective date of this amendatory Act of 1997, the cost of the
coal, including transportation costs, constitutes the lowest
cost for adequate and reliable fuel supply reasonably
available to the public utility in comparison to the cost,
including transportation costs, of other adequate and reliable
sources of fuel supply reasonably available to the public
utility, or (ii) except as otherwise provided in the next 3
sentences of this paragraph. Such costs of fuel shall, when
requested by a utility or at the conclusion of the utility's
next general electric rate proceeding, whichever shall first
occur, include transportation costs of coal purchased under
existing coal purchase contracts. For purposes of this
paragraph "existing coal purchase contracts" means contracts
for the purchase of coal in effect on the effective date of
this amendatory Act of 1991, as such contracts may thereafter
be amended, but only to the extent that any such amendment does
not increase the aggregate quantity of coal to be purchased
under such contract. Nothing herein shall authorize an
electric utility to recover through its fuel adjustment clause
any amounts of transportation costs of coal that were included
in the revenue requirement used to set base rates in its most
recent general rate proceeding. Cost shall be based upon
uniformly applied accounting principles. Annually, the
Commission shall initiate public hearings to determine whether
the clauses reflect actual costs of fuel, gas, power, or coal

SB0238 - 580 - LRB103 24882 DTM 51215 b
transportation purchased to determine whether such purchases
were prudent, and to reconcile any amounts collected with the
actual costs of fuel, power, gas, or coal transportation
prudently purchased. In each such proceeding, the burden of
proof shall be upon the utility to establish the prudence of
its cost of fuel, power, gas, or coal transportation purchases
and costs. The Commission shall issue its final order in each
such annual proceeding for an electric utility by December 31
of the year immediately following the year to which the
proceeding pertains, provided, that the Commission shall issue
its final order with respect to such annual proceeding for the
years 1996 and earlier by December 31, 1998.
(b) A public utility providing electric service, other
than a public utility described in subsections (e) or (f) of
this Section, may at any time during the mandatory transition
period file with the Commission proposed tariff sheets that
eliminate the public utility's fuel adjustment clause and
adjust the public utility's base rate tariffs by the amount
necessary for the base fuel component of the base rates to
recover the public utility's average fuel and power supply
costs per kilowatt-hour for the 2 most recent years for which
the Commission has issued final orders in annual proceedings
pursuant to subsection (a), where the average fuel and power
supply costs per kilowatt-hour shall be calculated as the sum
of the public utility's prudent and allowable fuel and power
supply costs as found by the Commission in the 2 proceedings

SB0238 - 581 - LRB103 24882 DTM 51215 b
divided by the public utility's actual jurisdictional
kilowatt-hour sales for those 2 years. Notwithstanding any
contrary or inconsistent provisions in Section 9-201 of this
Act, in subsection (a) of this Section or in any rules or
regulations promulgated by the Commission pursuant to
subsection (g) of this Section, the Commission shall review
and shall by order approve, or approve as modified, the
proposed tariff sheets within 60 days after the date of the
public utility's filing. The Commission may modify the public
utility's proposed tariff sheets only to the extent the
Commission finds necessary to achieve conformance to the
requirements of this subsection (b). During the 5 years
following the date of the Commission's order, but in any event
no earlier than January 1, 2007, a public utility whose fuel
adjustment clause has been eliminated pursuant to this
subsection shall not file proposed tariff sheets seeking, or
otherwise petition the Commission for, reinstatement of a fuel
adjustment clause.
(c) Notwithstanding any contrary or inconsistent
provisions in Section 9-201 of this Act, in subsection (a) of
this Section or in any rules or regulations promulgated by the
Commission pursuant to subsection (g) of this Section, a
public utility providing electric service, other than a public
utility described in subsection (e) or (f) of this Section,
may at any time during the mandatory transition period file
with the Commission proposed tariff sheets that establish the

SB0238 - 582 - LRB103 24882 DTM 51215 b
rate per kilowatt-hour to be applied pursuant to the public
utility's fuel adjustment clause at the average value for such
rate during the preceding 24 months, provided that such
average rate results in a credit to customers' bills, without
making any revisions to the public utility's base rate
tariffs. The proposed tariff sheets shall establish the fuel
adjustment rate for a specific time period of at least 3 years
but not more than 5 years, provided that the terms and
conditions for any reinstatement earlier than 5 years shall be
set forth in the proposed tariff sheets and subject to
modification or approval by the Commission. The Commission
shall review and shall by order approve the proposed tariff
sheets if it finds that the requirements of this subsection
are met. The Commission shall not conduct the annual hearings
specified in the last 3 sentences of subsection (a) of this
Section for the utility for the period that the factor
established pursuant to this subsection is in effect.
(d) A public utility providing electric service, or a
public utility providing gas service may file with the
Commission proposed tariff sheets that eliminate the public
utility's fuel or purchased gas adjustment clause and adjust
the public utility's base rate tariffs to provide for recovery
of power supply costs or gas supply costs that would have been
recovered through such clause; provided, that the provisions
of this subsection (d) shall not be available to a public
utility described in subsections (e) or (f) of this Section to

SB0238 - 583 - LRB103 24882 DTM 51215 b
eliminate its fuel adjustment clause. Notwithstanding any
contrary or inconsistent provisions in Section 9-201 of this
Act, in subsection (a) of this Section, or in any rules or
regulations promulgated by the Commission pursuant to
subsection (g) of this Section, the Commission shall review
and shall by order approve, or approve as modified in the
Commission's order, the proposed tariff sheets within 240 days
after the date of the public utility's filing. The
Commission's order shall approve rates and charges that the
Commission, based on information in the public utility's
filing or on the record if a hearing is held by the Commission,
finds will recover the reasonable, prudent and necessary
jurisdictional power supply costs or gas supply costs incurred
or to be incurred by the public utility during a 12 month
period found by the Commission to be appropriate for these
purposes, provided, that such period shall be either (i) a 12
month historical period occurring during the 15 months ending
on the date of the public utility's filing, or (ii) a 12 month
future period ending no later than 15 months following the
date of the public utility's filing. The public utility shall
include with its tariff filing information showing both (1)
its actual jurisdictional power supply costs or gas supply
costs for a 12 month historical period conforming to (i) above
and (2) its projected jurisdictional power supply costs or gas
supply costs for a future 12 month period conforming to (ii)
above. If the Commission's order requires modifications in the

SB0238 - 584 - LRB103 24882 DTM 51215 b
tariff sheets filed by the public utility, the public utility
shall have 7 days following the date of the order to notify the
Commission whether the public utility will implement the
modified tariffs or elect to continue its fuel or purchased
gas adjustment clause in force as though no order had been
entered. The Commission's order shall provide for any
reconciliation of power supply costs or gas supply costs, as
the case may be, and associated revenues through the date that
the public utility's fuel or purchased gas adjustment clause
is eliminated. During the 5 years following the date of the
Commission's order, a public utility whose fuel or purchased
gas adjustment clause has been eliminated pursuant to this
subsection shall not file proposed tariff sheets seeking, or
otherwise petition the Commission for, reinstatement or
adoption of a fuel or purchased gas adjustment clause. Nothing
in this subsection (d) shall be construed as limiting the
Commission's authority to eliminate a public utility's fuel
adjustment clause or purchased gas adjustment clause in
accordance with any other applicable provisions of this Act.
(e) Notwithstanding any contrary or inconsistent
provisions in Section 9-201 of this Act, in subsection (a) of
this Section, or in any rules promulgated by the Commission
pursuant to subsection (g) of this Section, a public utility
providing electric service to more than 1,000,000 customers in
this State may, within the first 6 months after the effective
date of this amendatory Act of 1997, file with the Commission

SB0238 - 585 - LRB103 24882 DTM 51215 b
proposed tariff sheets that eliminate, effective January 1,
1997, the public utility's fuel adjustment clause without
adjusting its base rates, and such tariff sheets shall be
effective upon filing. To the extent the application of the
fuel adjustment clause had resulted in net charges to
customers after January 1, 1997, the utility shall also file a
tariff sheet that provides for a refund stated on a per
kilowatt-hour basis of such charges over a period not to
exceed 6 months; provided however, that such refund shall not
include the proportional amounts of taxes paid under the Use
Tax Act, Service Use Tax Act, Service Occupation Tax Act, and
Retailers' Occupation Tax Act on fuel used in generation. The
Commission shall issue an order within 45 days after the date
of the public utility's filing approving or approving as
modified such tariff sheet. If the fuel adjustment clause is
eliminated pursuant to this subsection, the Commission shall
not conduct the annual hearings specified in the last 3
sentences of subsection (a) of this Section for the utility
for any period after December 31, 1996 and prior to any
reinstatement of such clause. A public utility whose fuel
adjustment clause has been eliminated pursuant to this
subsection shall not file a proposed tariff sheet seeking, or
otherwise petition the Commission for, reinstatement of the
fuel adjustment clause prior to January 1, 2007.
(f) Notwithstanding any contrary or inconsistent
provisions in Section 9-201 of this Act, in subsection (a) of

SB0238 - 586 - LRB103 24882 DTM 51215 b
this Section, or in any rules or regulations promulgated by
the Commission pursuant to subsection (g) of this Section, a
public utility providing electric service to more than 500,000
customers but fewer than 1,000,000 customers in this State
may, within the first 6 months after the effective date of this
amendatory Act of 1997, file with the Commission proposed
tariff sheets that eliminate, effective January 1, 1997, the
public utility's fuel adjustment clause and adjust its base
rates by the amount necessary for the base fuel component of
the base rates to recover 91% of the public utility's average
fuel and power supply costs for the 2 most recent years for
which the Commission, as of January 1, 1997, has issued final
orders in annual proceedings pursuant to subsection (a), where
the average fuel and power supply costs per kilowatt-hour
shall be calculated as the sum of the public utility's prudent
and allowable fuel and power supply costs as found by the
Commission in the 2 proceedings divided by the public
utility's actual jurisdictional kilowatt-hour sales for those
2 years, provided, that such tariff sheets shall be effective
upon filing. To the extent the application of the fuel
adjustment clause had resulted in net charges to customers
after January 1, 1997, the utility shall also file a tariff
sheet that provides for a refund stated on a per kilowatt-hour
basis of such charges over a period not to exceed 6 months.
Provided however, that such refund shall not include the
proportional amounts of taxes paid under the Use Tax Act,

SB0238 - 587 - LRB103 24882 DTM 51215 b
Service Use Tax Act, Service Occupation Tax Act, and
Retailers' Occupation Tax Act on fuel used in generation. The
Commission shall issue an order within 45 days after the date
of the public utility's filing approving or approving as
modified such tariff sheet. If the fuel adjustment clause is
eliminated pursuant to this subsection, the Commission shall
not conduct the annual hearings specified in the last 3
sentences of subsection (a) of this Section for the utility
for any period after December 31, 1996 and prior to any
reinstatement of such clause. A public utility whose fuel
adjustment clause has been eliminated pursuant to this
subsection shall not file a proposed tariff sheet seeking, or
otherwise petition the Commission for, reinstatement of the
fuel adjustment clause prior to January 1, 2007.
(g) The Commission shall have authority to promulgate
rules and regulations to carry out the provisions of this
Section.
(h) Any Illinois gas utility may enter into a contract on
or before September 30, 2011 for up to 10 years of supply with
any company for the purchase of substitute natural gas (SNG)
produced from coal through the gasification process if the
company has commenced construction of a clean coal SNG
facility by July 1, 2012 and commencement of construction
shall mean that material physical site work has occurred, such
as site clearing and excavation, water runoff prevention,
water retention reservoir preparation, or foundation

SB0238 - 588 - LRB103 24882 DTM 51215 b
development. The contract shall contain the following
provisions: (i) at least 90% of feedstock to be used in the
gasification process shall be coal with a high volatile
bituminous rank and greater than 1.7 pounds of sulfur per
million Btu content; (ii) at the time the contract term
commences, the price per million Btu may not exceed $7.95 in
2008 dollars, adjusted annually based on the change in the
Annual Consumer Price Index for All Urban Consumers for the
Midwest Region as published in April by the United States
Department of Labor, Bureau of Labor Statistics (or a suitable
Consumer Price Index calculation if this Consumer Price Index
is not available) for the previous calendar year; provided
that the price per million Btu shall not exceed $9.95 at any
time during the contract; (iii) the utility's supply contract
for the purchase of SNG does not exceed 15% of the annual
system supply requirements of the utility as of 2008; and (iv)
the contract costs pursuant to subsection (h-10) of this
Section shall not include any lobbying expenses, charitable
contributions, advertising, organizational memberships,
carbon dioxide pipeline or sequestration expenses, or
marketing expenses.
Any gas utility that is providing service to more than
150,000 customers on August 2, 2011 (the effective date of
Public Act 97-239) shall either elect to enter into a contract
on or before September 30, 2011 for 10 years of SNG supply with
the owner of a clean coal SNG facility or to file biennial rate

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proceedings before the Commission in the years 2012, 2014, and
2016, with such filings made after August 2, 2011 and no later
than September 30 of the years 2012, 2014, and 2016 consistent
with all requirements of 83 Ill. Adm. Code 255 and 285 as
though the gas utility were filing for an increase in its
rates, without regard to whether such filing would produce an
increase, a decrease, or no change in the gas utility's rates,
and the Commission shall review the gas utility's filing and
shall issue its order in accordance with the provisions of
Section 9-201 of this Act.
Within 7 days after August 2, 2011, the owner of the clean
coal SNG facility shall submit to the Illinois Power Agency
and each gas utility that is providing service to more than
150,000 customers on August 2, 2011 a copy of a draft contract.
Within 30 days after the receipt of the draft contract, each
such gas utility shall provide the Illinois Power Agency and
the owner of the clean coal SNG facility with its comments and
recommended revisions to the draft contract. Within 7 days
after the receipt of the gas utility's comments and
recommended revisions, the owner of the facility shall submit
its responsive comments and a further revised draft of the
contract to the Illinois Power Agency. The Illinois Power
Agency shall review the draft contract and comments.
During its review of the draft contract, the Illinois
Power Agency shall:
(1) review and confirm in writing that the terms

SB0238 - 590 - LRB103 24882 DTM 51215 b
stated in this subsection (h) are incorporated in the SNG
contract;
(2) review the SNG pricing formula included in the
contract and approve that formula if the Illinois Power
Agency determines that the formula, at the time the
contract term commences: (A) starts with a price of $6.50
per MMBtu adjusted by the adjusted final capitalized plant
cost; (B) takes into account budgeted miscellaneous net
revenue after cost allowance, including sale of SNG
produced by the clean coal SNG facility above the
nameplate capacity of the facility and other by-products
produced by the facility, as approved by the Illinois
Power Agency; (C) does not include carbon dioxide
transportation or sequestration expenses; and (D) includes
all provisions required under this subsection (h); if the
Illinois Power Agency does not approve of the SNG pricing
formula, then the Illinois Power Agency shall modify the
formula to ensure that it meets the requirements of this
subsection (h);
(3) review and approve the amount of budgeted
miscellaneous net revenue after cost allowance, including
sale of SNG produced by the clean coal SNG facility above
the nameplate capacity of the facility and other
by-products produced by the facility, to be included in
the pricing formula; the Illinois Power Agency shall
approve the amount of budgeted miscellaneous net revenue

SB0238 - 591 - LRB103 24882 DTM 51215 b
to be included in the pricing formula if it determines the
budgeted amount to be reasonable and accurate;
(4) review and confirm in writing that using the EIA
Annual Energy Outlook-2011 Henry Hub Spot Price, the
contract terms set out in subsection (h), the
reconciliation account terms as set out in subsection
(h-15), and an estimated inflation rate of 2.5% for each
corresponding year, that there will be no cumulative
estimated increase for residential customers; and
(5) allocate the nameplate capacity of the clean coal
SNG by total therms sold to ultimate customers by each gas
utility in 2008; provided, however, no utility shall be
required to purchase more than 42% of the projected annual
output of the facility; additionally, the Illinois Power
Agency shall further adjust the allocation only as
required to take into account (A) adverse consolidation,
derivative, or lease impacts to the balance sheet or
income statement of any gas utility or (B) the physical
capacity of the gas utility to accept SNG.
If the parties to the contract do not agree on the terms
therein, then the Illinois Power Agency shall retain an
independent mediator to mediate the dispute between the
parties. If the parties are in agreement on the terms of the
contract, then the Illinois Power Agency shall approve the
contract. If after mediation the parties have failed to come
to agreement, then the Illinois Power Agency shall revise the

SB0238 - 592 - LRB103 24882 DTM 51215 b
draft contract as necessary to confirm that the contract
contains only terms that are reasonable and equitable. The
Illinois Power Agency may, in its discretion, retain an
independent, qualified, and experienced expert to assist in
its obligations under this subsection (h). The Illinois Power
Agency shall adopt and make public policies detailing the
processes for retaining a mediator and an expert under this
subsection (h). Any mediator or expert retained under this
subsection (h) shall be retained no later than 60 days after
August 2, 2011.
The Illinois Power Agency shall complete all of its
responsibilities under this subsection (h) within 60 days
after August 2, 2011. The clean coal SNG facility shall pay a
reasonable fee as required by the Illinois Power Agency for
its services under this subsection (h) and shall pay the
mediator's and expert's reasonable fees, if any. A gas utility
and its customers shall have no obligation to reimburse the
clean coal SNG facility or the Illinois Power Agency of any
such costs.
Within 30 days after commercial production of SNG has
begun, the Commission shall initiate a review to determine
whether the final capitalized plant cost of the clean coal SNG
facility reflects actual incurred costs and whether the
incurred costs were reasonable. In determining the actual
incurred costs included in the final capitalized plant cost
and the reasonableness of those costs, the Commission may in

SB0238 - 593 - LRB103 24882 DTM 51215 b
its discretion retain independent, qualified, and experienced
experts to assist in its determination. The expert shall not
own or control any direct or indirect interest in the clean
coal SNG facility and shall have no contractual relationship
with the clean coal SNG facility. If an expert is retained by
the Commission, then the clean coal SNG facility shall pay the
expert's reasonable fees. The fees shall not be passed on to a
utility or its customers. The Commission shall adopt and make
public a policy detailing the process for retaining experts
under this subsection (h).
Within 30 days after completion of its review, the
Commission shall initiate a formal proceeding on the final
capitalized plant cost of the clean coal SNG facility at which
comments and testimony may be submitted by any interested
parties and the public. If the Commission finds that the final
capitalized plant cost includes costs that were not actually
incurred or costs that were unreasonably incurred, then the
Commission shall disallow the amount of non-incurred or
unreasonable costs from the SNG price under contracts entered
into under this subsection (h). If the Commission disallows
any costs, then the Commission shall adjust the SNG price
using the price formula in the contract approved by the
Illinois Power Agency under this subsection (h) to reflect the
disallowed costs and shall enter an order specifying the
revised price. In addition, the Commission's order shall
direct the clean coal SNG facility to issue refunds of such

SB0238 - 594 - LRB103 24882 DTM 51215 b
sums as shall represent the difference between actual gross
revenues and the gross revenue that would have been obtained
based upon the same volume, from the price revised by the
Commission. Any refund shall include interest calculated at a
rate determined by the Commission and shall be returned
according to procedures prescribed by the Commission.
Nothing in this subsection (h) shall preclude any party
affected by a decision of the Commission under this subsection
(h) from seeking judicial review of the Commission's decision.
(h-1) Any Illinois gas utility may enter into a sourcing
agreement for up to 30 years of supply with the clean coal SNG
brownfield facility if the clean coal SNG brownfield facility
has commenced construction. Any gas utility that is providing
service to more than 150,000 customers on July 13, 2011 (the
effective date of Public Act 97-096) shall either elect to
file biennial rate proceedings before the Commission in the
years 2012, 2014, and 2016 or enter into a sourcing agreement
or sourcing agreements with a clean coal SNG brownfield
facility with an initial term of 30 years for either (i) a
percentage of 43,500,000,000 cubic feet per year, such that
the utilities entering into sourcing agreements with the clean
coal SNG brownfield facility purchase 100%, allocated by total
therms sold to ultimate customers by each gas utility in 2008
or (ii) such lesser amount as may be available from the clean
coal SNG brownfield facility; provided that no utility shall
be required to purchase more than 42% of the projected annual

SB0238 - 595 - LRB103 24882 DTM 51215 b
output of the clean coal SNG brownfield facility, with the
remainder of such utility's obligation to be divided
proportionately between the other utilities, and provided that
the Illinois Power Agency shall further adjust the allocation
only as required to take into account adverse consolidation,
derivative, or lease impacts to the balance sheet or income
statement of any gas utility.
A gas utility electing to file biennial rate proceedings
before the Commission must file a notice of its election with
the Commission within 60 days after July 13, 2011 or its right
to make the election is irrevocably waived. A gas utility
electing to file biennial rate proceedings shall make such
filings no later than August 1 of the years 2012, 2014, and
2016, consistent with all requirements of 83 Ill. Adm. Code
255 and 285 as though the gas utility were filing for an
increase in its rates, without regard to whether such filing
would produce an increase, a decrease, or no change in the gas
utility's rates, and notwithstanding any other provisions of
this Act, the Commission shall fully review the gas utility's
filing and shall issue its order in accordance with the
provisions of Section 9-201 of this Act, regardless of whether
the Commission has approved a formula rate for the gas
utility.
Within 15 days after July 13, 2011, the owner of the clean
coal SNG brownfield facility shall submit to the Illinois
Power Agency and each gas utility that is providing service to

SB0238 - 596 - LRB103 24882 DTM 51215 b
more than 150,000 customers on July 13, 2011 a copy of a draft
sourcing agreement. Within 45 days after receipt of the draft
sourcing agreement, each such gas utility shall provide the
Illinois Power Agency and the owner of a clean coal SNG
brownfield facility with its comments and recommended
revisions to the draft sourcing agreement. Within 15 days
after the receipt of the gas utility's comments and
recommended revisions, the owner of the clean coal SNG
brownfield facility shall submit its responsive comments and a
further revised draft of the sourcing agreement to the
Illinois Power Agency. The Illinois Power Agency shall review
the draft sourcing agreement and comments.
If the parties to the sourcing agreement do not agree on
the terms therein, then the Illinois Power Agency shall retain
an independent mediator to mediate the dispute between the
parties. If the parties are in agreement on the terms of the
sourcing agreement, the Illinois Power Agency shall approve
the final draft sourcing agreement. If after mediation the
parties have failed to come to agreement, then the Illinois
Power Agency shall revise the draft sourcing agreement as
necessary to confirm that the final draft sourcing agreement
contains only terms that are reasonable and equitable. The
Illinois Power Agency shall adopt and make public a policy
detailing the process for retaining a mediator under this
subsection (h-1). Any mediator retained to assist with
mediating disputes between the parties regarding the sourcing

SB0238 - 597 - LRB103 24882 DTM 51215 b
agreement shall be retained no later than 60 days after July
13, 2011.
Upon approval of a final draft agreement, the Illinois
Power Agency shall submit the final draft agreement to the
Capital Development Board and the Commission no later than 90
days after July 13, 2011. The gas utility and the clean coal
SNG brownfield facility shall pay a reasonable fee as required
by the Illinois Power Agency for its services under this
subsection (h-1) and shall pay the mediator's reasonable fees,
if any. The Illinois Power Agency shall adopt and make public a
policy detailing the process for retaining a mediator under
this Section.
The sourcing agreement between a gas utility and the clean
coal SNG brownfield facility shall contain the following
provisions:
(1) Any and all coal used in the gasification process
must be coal that has high volatile bituminous rank and
greater than 1.7 pounds of sulfur per million Btu content.
(2) Coal and petroleum coke are feedstocks for the
gasification process, with coal comprising at least 50% of
the total feedstock over the term of the sourcing
agreement unless the facility reasonably determines that
it is necessary to use additional petroleum coke to
deliver net 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 with the feedstocks

SB0238 - 598 - LRB103 24882 DTM 51215 b
to be procured in accordance with requirements of Section
1-78 of the Illinois Power Agency Act.
(3) The sourcing agreement has an initial term that
once entered into terminates no more than 30 years after
the commencement of the commercial production of SNG at
the clean coal SNG brownfield facility.
(4) The clean coal SNG brownfield facility guarantees
a minimum of $100,000,000 in consumer savings to customers
of the utilities that have entered into sourcing
agreements with the clean coal SNG brownfield facility,
calculated in real 2010 dollars at the conclusion of the
term of the sourcing agreement by comparing the delivered
SNG price to the Chicago City-gate price on a weighted
daily basis for each day over the entire term of the
sourcing agreement, to be provided in accordance with
subsection (h-2) of this Section.
(5) Prior to the clean coal SNG brownfield facility
issuing a notice to proceed to construction, the clean
coal SNG brownfield facility shall establish a consumer
protection reserve account for the benefit of the
customers of the utilities that have entered into sourcing
agreements with the clean coal SNG brownfield facility
pursuant to this subsection (h-1), with cash principal in
the amount of $150,000,000. This cash principal shall only
be recoverable through the consumer protection reserve
account and not as a cost to be recovered in the delivered

SB0238 - 599 - LRB103 24882 DTM 51215 b
SNG price pursuant to subsection (h-3) of this Section.
The consumer protection reserve account shall be
maintained and administered by an independent trustee that
is mutually agreed upon by the clean coal SNG brownfield
facility, the utilities, and the Commission in an
interest-bearing account in accordance with subsection
(h-2) of this Section.
"Consumer protection reserve account principal maximum
amount" shall mean the maximum amount of principal to be
maintained in the consumer protection reserve account.
During the first 2 years of operation of the facility,
there shall be no consumer protection reserve account
maximum amount. After the first 2 years of operation of
the facility, the consumer protection reserve account
maximum amount shall be $150,000,000. After 5 years of
operation, and every 5 years thereafter, the trustee shall
calculate the 5-year average balance of the consumer
protection reserve account. If the trustee determines that
during the prior 5 years the consumer protection reserve
account has had an average account balance of less than
$75,000,000, then the consumer protection reserve account
principal maximum amount shall be increased by $5,000,000.
If the trustee determines that during the prior 5 years
the consumer protection reserve account has had an average
account balance of more than $75,000,000, then the
consumer protection reserve account principal maximum

SB0238 - 600 - LRB103 24882 DTM 51215 b
amount shall be decreased by $5,000,000.
(6) The clean coal SNG brownfield facility shall
identify and sell economically viable by-products produced
by the facility.
(7) Fifty percent of all additional net revenue,
defined as miscellaneous net revenue from products
produced by the facility and delivered during the month
after cost allowance for costs associated with additional
net revenue that are not otherwise recoverable pursuant to
subsection (h-3) of this Section, including net revenue
from sales of substitute natural gas derived from the
facility above the nameplate capacity of the facility and
other by-products produced by the facility, shall be
credited to the consumer protection reserve account
pursuant to subsection (h-2) of this Section.
(8) The delivered SNG price per million btu to be paid
monthly by the utility to the clean coal SNG brownfield
facility, which shall be based only upon the following:
(A) a capital recovery charge, operations and maintenance
costs, and sequestration costs, only to the extent
approved by the Commission pursuant to paragraphs (1),
(2), and (3) of subsection (h-3) of this Section; (B) the
actual delivered and processed fuel costs pursuant to
paragraph (4) of subsection (h-3) of this Section; (C)
actual costs of SNG transportation pursuant to paragraph
(6) of subsection (h-3) of this Section; (D) certain taxes

SB0238 - 601 - LRB103 24882 DTM 51215 b
and fees imposed by the federal government, the State, or
any unit of local government as provided in paragraph (6)
of subsection (h-3) of this Section; and (E) the credit,
if any, from the consumer protection reserve account
pursuant to subsection (h-2) of this Section. The
delivered SNG price per million Btu shall proportionately
reflect these elements over the term of the sourcing
agreement.
(9) A formula to translate the recoverable costs and
charges under subsection (h-3) of this Section into the
delivered SNG price per million btu.
(10) Title to the SNG shall pass at a mutually
agreeable point in Illinois, and may provide that, rather
than the utility taking title to the SNG, a mutually
agreed upon third-party gas marketer pursuant to a
contract approved by the Illinois Power Agency or its
designee may take title to the SNG pursuant to an
agreement between the utility, the owner of the clean coal
SNG brownfield facility, and the third-party gas marketer.
(11) A utility may exit the sourcing agreement without
penalty if the clean coal SNG brownfield facility does not
commence construction by July 1, 2015.
(12) A utility is responsible to pay only the
Commission determined unit price cost of SNG that is
purchased by the utility. Nothing in the sourcing
agreement will obligate a utility to invest capital in a

SB0238 - 602 - LRB103 24882 DTM 51215 b
clean coal SNG brownfield facility.
(13) The quality of SNG must, at a minimum, be
equivalent to the quality required for interstate pipeline
gas before a utility is required to accept and pay for SNG
gas.
(14) Nothing in the sourcing agreement will require a
utility to construct any facilities to accept delivery of
SNG. Provided, however, if a utility is required by law or
otherwise elects to connect the clean coal SNG brownfield
facility to an interstate pipeline, then the utility shall
be entitled to recover pursuant to its tariffs all just
and reasonable costs that are prudently incurred. Any
costs incurred by the utility to receive, deliver, manage,
or otherwise accommodate purchases under the SNG sourcing
agreement will be fully recoverable through a utility's
purchased gas adjustment clause rider mechanism in
conjunction with a SNG brownfield facility rider
mechanism. The SNG brownfield facility rider mechanism (A)
shall be applicable to all customers who receive
transportation service from the utility, (B) shall be
designed to have an equal percent impact on the
transportation services rates of each class of the
utility's customers, and (C) shall accurately reflect the
net consumer savings, if any, and above-market costs, if
any, associated with the utility receiving, delivering,
managing, or otherwise accommodating purchases under the

SB0238 - 603 - LRB103 24882 DTM 51215 b
SNG sourcing agreement.
(15) Remedies for the clean coal SNG brownfield
facility's failure to deliver a designated amount for a
designated period.
(16) The clean coal SNG brownfield facility shall make
a good faith effort to ensure that an amount equal to not
less than 15% of the value of its prime construction
contract for the facility shall be established as a goal
to be awarded to minority-owned businesses, women-owned
businesses, veteran-owned businesses, and businesses owned
by a person with a disability; provided that at least 75%
of the amount of such total goal shall be for
minority-owned businesses. "Minority-owned business",
"women-owned business", "veteran-owned businesses", and
"business owned by a person with a disability" shall have
the meanings ascribed to them in Section 2 of the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act.
(17) Prior to the clean coal SNG brownfield facility
issuing a notice to proceed to construction, the clean
coal SNG brownfield facility shall file with the
Commission a certificate from an independent engineer that
the clean coal SNG brownfield facility has (A) obtained
all applicable State and federal environmental permits
required for construction; (B) obtained approval from the
Commission of a carbon capture and sequestration plan; and

SB0238 - 604 - LRB103 24882 DTM 51215 b
(C) obtained all necessary permits required for
construction for the transportation and sequestration of
carbon dioxide as set forth in the Commission-approved
carbon capture and sequestration plan.
(h-2) Consumer protection reserve account. The clean coal
SNG brownfield facility shall guarantee a minimum of
$100,000,000 in consumer savings to customers of the utilities
that have entered into sourcing agreements with the clean coal
SNG brownfield facility, calculated in real 2010 dollars at
the conclusion of the term of the sourcing agreement by
comparing the delivered SNG price to the Chicago City-gate
price on a weighted daily basis for each day over the entire
term of the sourcing agreement. Prior to the clean coal SNG
brownfield facility issuing a notice to proceed to
construction, the clean coal SNG brownfield facility shall
establish a consumer protection reserve account for the
benefit of the retail customers of the utilities that have
entered into sourcing agreements with the clean coal SNG
brownfield facility pursuant to subsection (h-1), with cash
principal in the amount of $150,000,000. Such cash principal
shall only be recovered through the consumer protection
reserve account and not as a cost to be recovered in the
delivered SNG price pursuant to subsection (h-3) of this
Section. The consumer protection reserve account shall be
maintained and administered by an independent trustee that is
mutually agreed upon by the clean coal SNG brownfield

SB0238 - 605 - LRB103 24882 DTM 51215 b
facility, the utilities, and the Commission in an
interest-bearing account in accordance with the following:
(1) The clean coal SNG brownfield facility monthly
shall calculate (A) the difference between the monthly
delivered SNG price and the Chicago City-gate price, by
comparing the delivered SNG price, which shall include the
cost of transportation to the delivery point, if any, to
the Chicago City-gate price on a weighted daily basis for
each day of the prior month based upon a mutually agreed
upon published index and (B) the overage amount, if any,
by calculating the annualized incremental additional cost,
if any, of the delivered SNG in excess of 2.015% of the
average annual inflation-adjusted amounts paid by all gas
distribution customers in connection with natural gas
service during the 5 years ending May 31, 2010.
(2) During the first 2 years of operation of the
facility:
(A) to the extent there is an overage amount, the
consumer protection reserve account shall be used to
provide a credit to reduce the SNG price by an amount
equal to the overage amount; and
(B) to the extent the monthly delivered SNG price
is less than or equal to the Chicago City-gate price,
the utility shall credit the difference between the
monthly delivered SNG price and the monthly Chicago
City-gate price, if any, to the consumer protection

SB0238 - 606 - LRB103 24882 DTM 51215 b
reserve account. Such credit issued pursuant to this
paragraph (B) shall be deemed prudent and reasonable
and not subject to a Commission prudence review;
(3) After 2 years of operation of the facility, and
monthly, on an on-going basis, thereafter:
(A) to the extent that the monthly delivered SNG
price is less than or equal to the Chicago City-gate
price, calculated using the weighted average of the
daily Chicago City-gate price on a daily basis over
the entire month, the utility shall credit the
difference, if any, to the consumer protection reserve
account. Such credit issued pursuant to this
subparagraph (A) shall be deemed prudent and
reasonable and not subject to a Commission prudence
review;
(B) any amounts in the consumer protection reserve
account in excess of the consumer protection reserve
account principal maximum amount shall be distributed
as follows: (i) if retail customers have not realized
net consumer savings, calculated by comparing the
delivered SNG price to the weighted average of the
daily Chicago City-gate price on a daily basis over
the entire term of the sourcing agreement to date,
then 50% of any amounts in the consumer protection
reserve account in excess of the consumer protection
reserve account principal maximum shall be distributed

SB0238 - 607 - LRB103 24882 DTM 51215 b
to the clean coal SNG brownfield facility, with the
remaining 50% of any such additional amounts being
credited to retail customers, and (ii) if retail
customers have realized net consumer savings, then
100% of any amounts in the consumer protection reserve
account in excess of the consumer protection reserve
account principal maximum shall be distributed to the
clean coal SNG brownfield facility; provided, however,
that under no circumstances shall the total cumulative
amount distributed to the clean coal SNG brownfield
facility under this subparagraph (B) exceed
$150,000,000;
(C) to the extent there is an overage amount,
after distributing the amounts pursuant to
subparagraph (B) of this paragraph (3), if any, the
consumer protection reserve account shall be used to
provide a credit to reduce the SNG price by an amount
equal to the overage amount;
(D) if retail customers have realized net consumer
savings, calculated by comparing the delivered SNG
price to the weighted average of the daily Chicago
City-gate price on a daily basis over the entire term
of the sourcing agreement to date, then after
distributing the amounts pursuant to subparagraphs (B)
and (C) of this paragraph (3), 50% of any additional
amounts in the consumer protection reserve account in

SB0238 - 608 - LRB103 24882 DTM 51215 b
excess of the consumer protection reserve account
principal maximum shall be distributed to the clean
coal SNG brownfield facility, with the remaining 50%
of any such additional amounts being credited to
retail customers; provided, however, that if retail
customers have not realized such net consumer savings,
no such distribution shall be made to the clean coal
SNG brownfield facility, and 100% of such additional
amounts shall be credited to the retail customers to
the extent the consumer protection reserve account
exceeds the consumer protection reserve account
principal maximum amount.
(4) Fifty percent of all additional net revenue,
defined as miscellaneous net revenue after cost allowance
for costs associated with additional net revenue that are
not otherwise recoverable pursuant to subsection (h-3) of
this Section, including net revenue from sales of
substitute natural gas derived from the facility above the
nameplate capacity of the facility and other by-products
produced by the facility, shall be credited to the
consumer protection reserve account.
(5) At the conclusion of the term of the sourcing
agreement, to the extent retail customers have not saved
the minimum of $100,000,000 in consumer savings as
guaranteed in this subsection (h-2), amounts in the
consumer protection reserve account shall be credited to

SB0238 - 609 - LRB103 24882 DTM 51215 b
retail customers to the extent the retail customers have
saved the minimum of $100,000,000; 50% of any additional
amounts in the consumer protection reserve account shall
be distributed to the company, and the remaining 50% shall
be distributed to retail customers.
(6) If, at the conclusion of the term of the sourcing
agreement, the customers have not saved the minimum
$100,000,000 in savings as guaranteed in this subsection
(h-2) and the consumer protection reserve account has been
depleted, then the clean coal SNG brownfield facility
shall be liable for any remaining amount owed to the
retail customers to the extent that the customers are
provided with the $100,000,000 in savings as guaranteed in
this subsection (h-2). The retail customers shall have
first priority in recovering that debt above any
creditors, except the original senior secured lender to
the extent that the original senior secured lender has any
senior secured debt outstanding, including any clean coal
SNG brownfield facility parent companies or affiliates.
(7) The clean coal SNG brownfield facility, the
utilities, and the trustee shall work together to take
commercially reasonable steps to minimize the tax impact
of these transactions, while preserving the consumer
benefits.
(8) The clean coal SNG brownfield facility shall each
month, starting in the facility's first year of commercial

SB0238 - 610 - LRB103 24882 DTM 51215 b
operation, file with the Commission, in such form as the
Commission shall require, a report as to the consumer
protection reserve account. The monthly report must
contain the following information:
(A) the extent the monthly delivered SNG price is
greater than, less than, or equal to the Chicago
City-gate price;
(B) the amount credited or debited to the consumer
protection reserve account during the month;
(C) the amounts credited to consumers and
distributed to the clean coal SNG brownfield facility
during the month;
(D) the total amount of the consumer protection
reserve account at the beginning and end of the month;
(E) the total amount of consumer savings to date;
(F) a confidential summary of the inputs used to
calculate the additional net revenue; and
(G) any other additional information the
Commission shall require.
When any report is erroneous or defective or appears
to the Commission to be erroneous or defective, the
Commission may notify the clean coal SNG brownfield
facility to amend the report within 30 days, and, before
or after the termination of the 30-day period, the
Commission may examine the trustee of the consumer
protection reserve account or the officers, agents,

SB0238 - 611 - LRB103 24882 DTM 51215 b
employees, books, records, or accounts of the clean coal
SNG brownfield facility and correct such items in the
report as upon such examination the Commission may find
defective or erroneous. All reports shall be under oath.
All reports made to the Commission by the clean coal
SNG brownfield facility and the contents of the reports
shall be open to public inspection and shall be deemed a
public record under the Freedom of Information Act. Such
reports shall be preserved in the office of the
Commission. The Commission shall publish an annual summary
of the reports prior to February 1 of the following year.
The annual summary shall be made available to the public
on the Commission's website and shall be submitted to the
General Assembly.
Any facility that fails to file a report required
under this paragraph (8) to the Commission within the time
specified or to make specific answer to any question
propounded by the Commission within 30 days from the time
it is lawfully required to do so, or within such further
time not to exceed 90 days as may in its discretion be
allowed by the Commission, shall pay a penalty of $500 to
the Commission for each day it is in default.
Any person who willfully makes any false report to the
Commission or to any member, officer, or employee thereof,
any person who willfully in a report withholds or fails to
provide material information to which the Commission is

SB0238 - 612 - LRB103 24882 DTM 51215 b
entitled under this paragraph (8) and which information is
either required to be filed by statute, rule, regulation,
order, or decision of the Commission or has been requested
by the Commission, and any person who willfully aids or
abets such person shall be guilty of a Class A
misdemeanor.
(h-3) Recoverable costs and revenue by the clean coal SNG
brownfield facility.
(1) A capital recovery charge approved by the
Commission shall be recoverable by the clean coal SNG
brownfield facility under a sourcing agreement. The
capital recovery charge shall be comprised of capital
costs and a reasonable rate of return. "Capital costs"
means costs to be incurred in connection with the
construction and development of a facility, as defined in
Section 1-10 of the Illinois Power Agency Act, and such
other costs as the Capital Development Board deems
appropriate to be recovered in the capital recovery
charge.
(A) Capital costs. The Capital Development Board
shall calculate a range of capital costs that it
believes would be reasonable for the clean coal SNG
brownfield facility to recover under the sourcing
agreement. In making this determination, the Capital
Development Board shall review the facility cost
report, if any, of the clean coal SNG brownfield

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facility, adjusting the results based on the change in
the Annual Consumer Price Index for All Urban
Consumers for the Midwest Region as published in April
by the United States Department of Labor, Bureau of
Labor Statistics, the final draft of the sourcing
agreement, and the rate of return approved by the
Commission. In addition, the Capital Development Board
may consult as much as it deems necessary with the
clean coal SNG brownfield facility and conduct
whatever research and investigation it deems
necessary.
The Capital Development Board shall retain an
engineering expert to assist in determining both the
range of capital costs and the range of operations and
maintenance costs that it believes would be reasonable
for the clean coal SNG brownfield facility to recover
under the sourcing agreement. Provided, however, that
such expert shall: (i) not have been involved in the
clean coal SNG brownfield facility's facility cost
report, if any, (ii) not own or control any direct or
indirect interest in the initial clean coal facility,
and (iii) have no contractual relationship with the
clean coal SNG brownfield facility. In order to
qualify as an independent expert, a person or company
must have:
(i) direct previous experience conducting

SB0238 - 614 - LRB103 24882 DTM 51215 b
front-end engineering and design studies for
large-scale energy facilities and administering
large-scale energy operations and maintenance
contracts, which may be particularized to the
specific type of financing associated with the
clean coal SNG brownfield facility;
(ii) an advanced degree in economics,
mathematics, engineering, or a related area of
study;
(iii) ten years of experience in the energy
sector, including construction and risk management
experience;
(iv) expertise in assisting companies with
obtaining financing for large-scale energy
projects, which may be particularized to the
specific type of financing associated with the
clean coal SNG brownfield facility;
(v) expertise in operations and maintenance
which may be particularized to the specific type
of operations and maintenance associated with the
clean coal SNG brownfield facility;
(vi) expertise in credit and contract
protocols;
(vii) adequate resources to perform and
fulfill the required functions and
responsibilities; and

SB0238 - 615 - LRB103 24882 DTM 51215 b
(viii) the absence of a conflict of interest
and inappropriate bias for or against an affected
gas utility or the clean coal SNG brownfield
facility.
The clean coal SNG brownfield facility and the
Illinois Power Agency shall cooperate with the Capital
Development Board in any investigation it deems
necessary. The Capital Development Board shall make
its final determination of the range of capital costs
confidentially and shall submit that range to the
Commission in a confidential filing within 120 days
after July 13, 2011 (the effective date of Public Act
97-096). The clean coal SNG brownfield facility shall
submit to the Commission its estimate of the capital
costs to be recovered under the sourcing agreement.
Only after the clean coal SNG brownfield facility has
submitted this estimate shall the Commission publicly
announce the range of capital costs submitted by the
Capital Development Board.
In the event that the estimate submitted by the
clean coal SNG brownfield facility is within or below
the range submitted by the Capital Development Board,
the clean coal SNG brownfield facility's estimate
shall be approved by the Commission as the amount of
capital costs to be recovered under the sourcing
agreement. In the event that the estimate submitted by

SB0238 - 616 - LRB103 24882 DTM 51215 b
the clean coal SNG brownfield facility is above the
range submitted by the Capital Development Board, the
amount of capital costs at the lowest end of the range
submitted by the Capital Development Board shall be
approved by the Commission as the amount of capital
costs to be recovered under the sourcing agreement.
Within 15 days after the Capital Development Board has
submitted its range and the clean coal SNG brownfield
facility has submitted its estimate, the Commission
shall approve the capital costs for the clean coal SNG
brownfield facility.
The Capital Development Board shall monitor the
construction of the clean coal SNG brownfield facility
for the full duration of construction to assess
potential cost overruns. The Capital Development
Board, in its discretion, may retain an expert to
facilitate such monitoring. The clean coal SNG
brownfield facility shall pay a reasonable fee as
required by the Capital Development Board for the
Capital Development Board's services under this
subsection (h-3) to be deposited into the Capital
Development Board Revolving Fund, and such fee shall
not be passed through to a utility or its customers. If
an expert is retained by the Capital Development Board
for monitoring of construction, then the clean coal
SNG brownfield facility must pay for the expert's

SB0238 - 617 - LRB103 24882 DTM 51215 b
reasonable fees and such costs shall not be passed
through to a utility or its customers.
(B) Rate of Return. No later than 30 days after the
date on which the Illinois Power Agency submits a
final draft sourcing agreement, the Commission shall
hold a public hearing to determine the rate of return
to be recovered under the sourcing agreement. Rate of
return shall be comprised of the clean coal SNG
brownfield facility's actual cost of debt, including
mortgage-style amortization, and a reasonable return
on equity. The Commission shall post notice of the
hearing on its website no later than 10 days prior to
the date of the hearing. The Commission shall provide
the public and all interested parties, including the
gas utilities, the Attorney General, and the Illinois
Power Agency, an opportunity to be heard.
In determining the return on equity, the
Commission shall select a commercially reasonable
return on equity taking into account the return on
equity being received by developers of similar
facilities in or outside of Illinois, the need to
balance an incentive for clean-coal technology with
the need to protect ratepayers from high gas prices,
the risks being borne by the clean coal SNG brownfield
facility in the final draft sourcing agreement, and
any other information that the Commission may deem

SB0238 - 618 - LRB103 24882 DTM 51215 b
relevant. The Commission may establish a return on
equity that varies with the amount of savings, if any,
to customers during the term of the sourcing
agreement, comparing the delivered SNG price to a
daily weighted average price of natural gas, based
upon an index. The Illinois Power Agency shall
recommend a return on equity to the Commission using
the same criteria. Within 60 days after receiving the
final draft sourcing agreement from the Illinois Power
Agency, the Commission shall approve the rate of
return for the clean coal brownfield facility. Within
30 days after obtaining debt financing for the clean
coal SNG brownfield facility, the clean coal SNG
brownfield facility shall file a notice with the
Commission identifying the actual cost of debt.
(2) Operations and maintenance costs approved by the
Commission shall be recoverable by the clean coal SNG
brownfield facility under the sourcing agreement. The
operations and maintenance costs mean costs that have been
incurred for the administration, supervision, operation,
maintenance, preservation, and protection of the clean
coal SNG brownfield facility's physical plant.
The Capital Development Board shall calculate a range
of operations and maintenance costs that it believes would
be reasonable for the clean coal SNG brownfield facility
to recover under the sourcing agreement, incorporating an

SB0238 - 619 - LRB103 24882 DTM 51215 b
inflation index or combination of inflation indices to
most accurately reflect the actual costs of operating the
clean coal SNG brownfield facility. In making this
determination, the Capital Development Board shall review
the facility cost report, if any, of the clean coal SNG
brownfield facility, adjusting the results for inflation
based on the change in the Annual Consumer Price Index for
All Urban Consumers for the Midwest Region as published in
April by the United States Department of Labor, Bureau of
Labor Statistics, the final draft of the sourcing
agreement, and the rate of return approved by the
Commission. In addition, the Capital Development Board may
consult as much as it deems necessary with the clean coal
SNG brownfield facility and conduct whatever research and
investigation it deems necessary. As set forth in
subparagraph (A) of paragraph (1) of this subsection
(h-3), the Capital Development Board shall retain an
independent engineering expert to assist in determining
both the range of operations and maintenance costs that it
believes would be reasonable for the clean coal SNG
brownfield facility to recover under the sourcing
agreement. The clean coal SNG brownfield facility and the
Illinois Power Agency shall cooperate with the Capital
Development Board in any investigation it deems necessary.
The Capital Development Board shall make its final
determination of the range of operations and maintenance

SB0238 - 620 - LRB103 24882 DTM 51215 b
costs confidentially and shall submit that range to the
Commission in a confidential filing within 120 days after
July 13, 2011.
The clean coal SNG brownfield facility shall submit to
the Commission its estimate of the operations and
maintenance costs to be recovered under the sourcing
agreement. Only after the clean coal SNG brownfield
facility has submitted this estimate shall the Commission
publicly announce the range of operations and maintenance
costs submitted by the Capital Development Board. In the
event that the estimate submitted by the clean coal SNG
brownfield facility is within or below the range submitted
by the Capital Development Board, the clean coal SNG
brownfield facility's estimate shall be approved by the
Commission as the amount of operations and maintenance
costs to be recovered under the sourcing agreement. In the
event that the estimate submitted by the clean coal SNG
brownfield facility is above the range submitted by the
Capital Development Board, the amount of operations and
maintenance costs at the lowest end of the range submitted
by the Capital Development Board shall be approved by the
Commission as the amount of operations and maintenance
costs to be recovered under the sourcing agreement. Within
15 days after the Capital Development Board has submitted
its range and the clean coal SNG brownfield facility has
submitted its estimate, the Commission shall approve the

SB0238 - 621 - LRB103 24882 DTM 51215 b
operations and maintenance costs for the clean coal SNG
brownfield facility.
The clean coal SNG brownfield facility shall pay for
the independent engineering expert's reasonable fees and
such costs shall not be passed through to a utility or its
customers. The clean coal SNG brownfield facility shall
pay a reasonable fee as required by the Capital
Development Board for the Capital Development Board's
services under this subsection (h-3) to be deposited into
the Capital Development Board Revolving Fund, and such fee
shall not be passed through to a utility or its customers.
(3) Sequestration costs approved by the Commission
shall be recoverable by the clean coal SNG brownfield
facility. "Sequestration costs" means costs to be incurred
by the clean coal SNG brownfield facility in accordance
with its Commission-approved carbon capture and
sequestration plan to:
(A) capture carbon dioxide;
(B) build, operate, and maintain a sequestration
site in which carbon dioxide may be injected;
(C) build, operate, and maintain a carbon dioxide
pipeline; and
(D) transport the carbon dioxide to the
sequestration site or a pipeline.
The Commission shall assess the prudency of the
sequestration costs for the clean coal SNG brownfield

SB0238 - 622 - LRB103 24882 DTM 51215 b
facility before construction commences at the
sequestration site or pipeline. Any revenues the clean
coal SNG brownfield facility receives as a result of the
capture, transportation, or sequestration of carbon
dioxide shall be first credited against all sequestration
costs, with the positive balance, if any, treated as
additional net revenue.
The Commission may, in its discretion, retain an
expert to assist in its review of sequestration costs. The
clean coal SNG brownfield facility shall pay for the
expert's reasonable fees if an expert is retained by the
Commission, and such costs shall not be passed through to
a utility or its customers. Once made, the Commission's
determination of the amount of recoverable sequestration
costs shall not be increased unless the clean coal SNG
brownfield facility can show by clear and convincing
evidence that (i) the costs were not reasonably
foreseeable; (ii) the costs were due to circumstances
beyond the clean coal SNG brownfield facility's control;
and (iii) the clean coal SNG brownfield facility took all
reasonable steps to mitigate the costs. If the Commission
determines that sequestration costs may be increased, the
Commission shall provide for notice and a public hearing
for approval of the increased sequestration costs.
(4) Actual delivered and processed fuel costs shall be
set by the Illinois Power Agency through a SNG feedstock

SB0238 - 623 - LRB103 24882 DTM 51215 b
procurement, pursuant to Sections 1-20, 1-77, and 1-78 of
the Illinois Power Agency Act, to be performed at least
every 5 years and purchased by the clean coal SNG
brownfield facility pursuant to feedstock procurement
contracts developed by the Illinois Power Agency, with
coal comprising at least 50% of the total feedstock over
the term of the sourcing agreement and petroleum coke
comprising the remainder of the SNG feedstock. If the
Commission fails to approve a feedstock procurement plan
or fails to approve the results of a feedstock procurement
event, then the fuel shall be purchased by the company
month-by-month on the spot market and those actual
delivered and processed fuel costs shall be recoverable
under the sourcing agreement. If a supplier defaults under
the terms of a procurement contract, then the Illinois
Power Agency shall immediately initiate a feedstock
procurement process to obtain a replacement supply, and,
prior to the conclusion of that process, fuel shall be
purchased by the company month-by-month on the spot market
and those actual delivered and processed fuel costs shall
be recoverable under the sourcing agreement.
(5) Taxes and fees imposed by the federal government,
the State, or any unit of local government applicable to
the clean coal SNG brownfield facility, excluding income
tax, shall be recoverable by the clean coal SNG brownfield
facility under the sourcing agreement to the extent such

SB0238 - 624 - LRB103 24882 DTM 51215 b
taxes and fees were not applicable to the facility on July
13, 2011.
(6) The actual transportation costs, in accordance
with the applicable utility's tariffs, and third-party
marketer costs incurred by the company, if any, associated
with transporting the SNG from the clean coal SNG
brownfield facility to the Chicago City-gate to sell such
SNG into the natural gas markets shall be recoverable
under the sourcing agreement.
(7) Unless otherwise provided, within 30 days after a
decision of the Commission on recoverable costs under this
Section, any interested party to the Commission's decision
may apply for a rehearing with respect to the decision.
The Commission shall receive and consider the application
for rehearing and shall grant or deny the application in
whole or in part within 20 days after the date of the
receipt of the application by the Commission. If no
rehearing is applied for within the required 30 days or an
application for rehearing is denied, then the Commission
decision shall be final. If an application for rehearing
is granted, then the Commission shall hold a rehearing
within 30 days after granting the application. The
decision of the Commission upon rehearing shall be final.
Any person affected by a decision of the Commission
under this subsection (h-3) may have the decision reviewed
only under and in accordance with the Administrative

SB0238 - 625 - LRB103 24882 DTM 51215 b
Review Law. Unless otherwise provided, the provisions of
the Administrative Review Law, all amendments and
modifications to that Law, and the rules adopted pursuant
to that Law shall apply to and govern all proceedings for
the judicial review of final administrative decisions of
the Commission under this subsection (h-3). The term
"administrative decision" is defined as in Section 3-101
of the Code of Civil Procedure.
(8) The Capital Development Board shall adopt and make
public a policy detailing the process for retaining
experts under this Section. Any experts retained to assist
with calculating the range of capital costs or operations
and maintenance costs shall be retained no later than 45
days after July 13, 2011.
(h-4) No later than 90 days after the Illinois Power
Agency submits the final draft sourcing agreement pursuant to
subsection (h-1), the Commission shall approve a sourcing
agreement containing (i) the capital costs, rate of return,
and operations and maintenance costs established pursuant to
subsection (h-3) and (ii) all other terms and conditions,
rights, provisions, exceptions, and limitations contained in
the final draft sourcing agreement; provided, however, the
Commission shall correct typographical and scrivener's errors
and modify the contract only as necessary to provide that the
gas utility does not have the right to terminate the sourcing
agreement due to any future events that may occur other than

SB0238 - 626 - LRB103 24882 DTM 51215 b
the clean coal SNG brownfield facility's failure to timely
meet milestones, uncured default, extended force majeure, or
abandonment. Once the sourcing agreement is approved, then the
gas utility subject to that sourcing agreement shall have 45
days after the date of the Commission's approval to enter into
the sourcing agreement.
(h-5) Sequestration enforcement.
(A) All contracts entered into under subsection (h) of
this Section and all sourcing agreements under subsection
(h-1) of this Section, regardless of duration, shall
require the owner of any facility supplying SNG under the
contract or sourcing agreement to provide certified
documentation to the Commission each year, starting in the
facility's first year of commercial operation, accurately
reporting the quantity of carbon dioxide emissions from
the facility that have been captured and sequestered and
reporting any quantities of carbon dioxide released from
the site or sites at which carbon dioxide emissions were
sequestered in prior years, based on continuous monitoring
of those sites.
(B) If, in any year, the owner of the clean coal SNG
facility fails to demonstrate that the SNG facility
captured and sequestered at least 90% of the total carbon
dioxide emissions that the facility would otherwise emit
or that sequestration of emissions from prior years has
failed, resulting in the release of carbon dioxide into

SB0238 - 627 - LRB103 24882 DTM 51215 b
the atmosphere, then the owner of the clean coal SNG
facility must pay a penalty of $20 per ton of excess carbon
dioxide emissions not to exceed $40,000,000, in any given
year which shall be deposited into the Energy Efficiency
Trust Fund and distributed pursuant to subsection (b) of
Section 6-6 of the Renewable Energy, Energy Efficiency,
and Coal Resources Development Law of 1997. On or before
the 5-year anniversary of the execution of the contract
and every 5 years thereafter, an expert hired by the owner
of the facility with the approval of the Attorney General
shall conduct an analysis to determine the cost of
sequestration of at least 90% of the total carbon dioxide
emissions the plant would otherwise emit. If the analysis
shows that the actual annual cost is greater than the
penalty, then the penalty shall be increased to equal the
actual cost. Provided, however, to the extent that the
owner of the facility described in subsection (h) of this
Section can demonstrate that the failure was as a result
of acts of God (including fire, flood, earthquake,
tornado, lightning, hurricane, or other natural disaster);
any amendment, modification, or abrogation of any
applicable law or regulation that would prevent
performance; war; invasion; act of foreign enemies;
hostilities (regardless of whether war is declared); civil
war; rebellion; revolution; insurrection; military or
usurped power or confiscation; terrorist activities; civil

SB0238 - 628 - LRB103 24882 DTM 51215 b
disturbance; riots; nationalization; sabotage; blockage;
or embargo, the owner of the facility described in
subsection (h) of this Section shall not be subject to a
penalty if and only if (i) it promptly provides notice of
its failure to the Commission; (ii) as soon as practicable
and consistent with any order or direction from the
Commission, it submits to the Commission proposed
modifications to its carbon capture and sequestration
plan; and (iii) it carries out its proposed modifications
in the manner and time directed by the Commission.
If the Commission finds that the facility has not
satisfied each of these requirements, then the facility
shall be subject to the penalty. If the owner of the clean
coal SNG facility captured and sequestered more than 90%
of the total carbon dioxide emissions that the facility
would otherwise emit, then the owner of the facility may
credit such additional amounts to reduce the amount of any
future penalty to be paid. The penalty resulting from the
failure to capture and sequester at least the minimum
amount of carbon dioxide shall not be passed on to a
utility or its customers.
If the clean coal SNG facility fails to meet the
requirements specified in this subsection (h-5), then the
Attorney General, on behalf of the People of the State of
Illinois, shall bring an action to enforce the obligations
related to the facility set forth in this subsection

SB0238 - 629 - LRB103 24882 DTM 51215 b
(h-5), including any penalty payments owed, but not
including the physical obligation to capture and sequester
at least 90% of the total carbon dioxide emissions that
the facility would otherwise emit. Such action may be
filed in any circuit court in Illinois. By entering into a
contract pursuant to subsection (h) of this Section, the
clean coal SNG facility agrees to waive any objections to
venue or to the jurisdiction of the court with regard to
the Attorney General's action under this subsection (h-5).
Compliance with the sequestration requirements and any
penalty requirements specified in this subsection (h-5)
for the clean coal SNG facility shall be assessed annually
by the Commission, which may in its discretion retain an
expert to facilitate its assessment. If any expert is
retained by the Commission, then the clean coal SNG
facility shall pay for the expert's reasonable fees, and
such costs shall not be passed through to the utility or
its customers.
In addition, carbon dioxide emission credits received
by the clean coal SNG facility in connection with
sequestration of carbon dioxide from the facility must be
sold in a timely fashion with any revenue, less applicable
fees and expenses and any expenses required to be paid by
facility for carbon dioxide transportation or
sequestration, deposited into the reconciliation account
within 30 days after receipt of such funds by the owner of

SB0238 - 630 - LRB103 24882 DTM 51215 b
the clean coal SNG facility.
The clean coal SNG facility is prohibited from
transporting or sequestering carbon dioxide unless the
owner of the carbon dioxide pipeline that transfers the
carbon dioxide from the facility and the owner of the
sequestration site where the carbon dioxide captured by
the facility is stored has acquired all applicable permits
under applicable State and federal laws, statutes, rules,
or regulations prior to the transfer or sequestration of
carbon dioxide. The responsibility for compliance with the
sequestration requirements specified in this subsection
(h-5) for the clean coal SNG facility shall reside solely
with the clean coal SNG facility, regardless of whether
the facility has contracted with another party to capture,
transport, or sequester carbon dioxide.
(C) If, in any year, the owner of a clean coal SNG
brownfield facility fails to demonstrate that the clean
coal SNG brownfield facility captured and sequestered at
least 85% of the total carbon dioxide emissions that the
facility would otherwise emit, then the owner of the clean
coal SNG brownfield facility must pay a penalty of $20 per
ton of excess carbon emissions up to $20,000,000, which
shall be deposited into the Energy Efficiency Trust Fund
and distributed pursuant to subsection (b) of Section 6-6
of the Renewable Energy, Energy Efficiency, and Coal
Resources Development Law of 1997. Provided, however, to

SB0238 - 631 - LRB103 24882 DTM 51215 b
the extent that the owner of the clean coal SNG brownfield
facility can demonstrate that the failure was as a result
of acts of God (including fire, flood, earthquake,
tornado, lightning, hurricane, or other natural disaster);
any amendment, modification, or abrogation of any
applicable law or regulation that would prevent
performance; war; invasion; act of foreign enemies;
hostilities (regardless of whether war is declared); civil
war; rebellion; revolution; insurrection; military or
usurped power or confiscation; terrorist activities; civil
disturbances; riots; nationalization; sabotage; blockage;
or embargo, the owner of the clean coal SNG brownfield
facility shall not be subject to a penalty if and only if
(i) it promptly provides notice of its failure to the
Commission; (ii) as soon as practicable and consistent
with any order or direction from the Commission, it
submits to the Commission proposed modifications to its
carbon capture and sequestration plan; and (iii) it
carries out its proposed modifications in the manner and
time directed by the Commission. If the Commission finds
that the facility has not satisfied each of these
requirements, then the facility shall be subject to the
penalty. If the owner of a clean coal SNG brownfield
facility demonstrates that the clean coal SNG brownfield
facility captured and sequestered more than 85% of the
total carbon emissions that the facility would otherwise

SB0238 - 632 - LRB103 24882 DTM 51215 b
emit, the owner of the clean coal SNG brownfield facility
may credit such additional amounts to reduce the amount of
any future penalty to be paid. The penalty resulting from
the failure to capture and sequester at least the minimum
amount of carbon dioxide shall not be passed on to a
utility or its customers.
In addition to any penalty for the clean coal SNG
brownfield facility's failure to capture and sequester at
least its minimum sequestration requirement, the Attorney
General, on behalf of the People of the State of Illinois,
shall bring an action for specific performance of this
subsection (h-5). Such action may be filed in any circuit
court in Illinois. By entering into a sourcing agreement
pursuant to subsection (h-1) of this Section, the clean
coal SNG brownfield facility agrees to waive any
objections to venue or to the jurisdiction of the court
with regard to the Attorney General's action for specific
performance under this subsection (h-5).
Compliance with the sequestration requirements and
penalty requirements specified in this subsection (h-5)
for the clean coal SNG brownfield facility shall be
assessed annually by the Commission, which may in its
discretion retain an expert to facilitate its assessment.
If an expert is retained by the Commission, then the clean
coal SNG brownfield facility shall pay for the expert's
reasonable fees, and such costs shall not be passed

SB0238 - 633 - LRB103 24882 DTM 51215 b
through to a utility or its customers. A SNG facility
operating pursuant to this subsection (h-5) shall not
forfeit its designation as a clean coal SNG facility or a
clean coal SNG brownfield facility if the facility fails
to fully comply with the applicable carbon sequestration
requirements in any given year, provided the requisite
offsets are purchased or requisite penalties are paid.
Responsibility for compliance with the sequestration
requirements specified in this subsection (h-5) for the
clean coal SNG brownfield facility shall reside solely
with the clean coal SNG brownfield facility regardless of
whether the facility has contracted with another party to
capture, transport, or sequester carbon dioxide.
(h-7) Sequestration permitting, oversight, and
investigations.
(1) No clean coal facility or clean coal SNG
brownfield facility may transport or sequester carbon
dioxide unless the Commission approves the method of
carbon dioxide transportation or sequestration. Such
approval shall be required regardless of whether the
facility has contracted with another to transport or
sequester the carbon dioxide. Nothing in this subsection
(h-7) shall release the owner or operator of a carbon
dioxide sequestration site or carbon dioxide pipeline from
any other permitting requirements under applicable State
and federal laws, statutes, rules, or regulations.

SB0238 - 634 - LRB103 24882 DTM 51215 b
(2) The Commission shall review carbon dioxide
transportation and sequestration methods proposed by a
clean coal facility or a clean coal SNG brownfield
facility and shall approve those methods it deems
reasonable and cost-effective. For purposes of this
review, "cost-effective" means a commercially reasonable
price for similar carbon dioxide transportation or
sequestration techniques. In determining whether
sequestration is reasonable and cost-effective, the
Commission may consult with the Illinois State Geological
Survey and retain third parties to assist in its
determination, provided that such third parties shall not
own or control any direct or indirect interest in the
facility that is proposing the carbon dioxide
transportation or the carbon dioxide sequestration method
and shall have no contractual relationship with that
facility. If a third party is retained by the Commission,
then the facility proposing the carbon dioxide
transportation or sequestration method shall pay for the
expert's reasonable fees, and these costs shall not be
passed through to a utility or its customers.
No later than 6 months prior to the date upon which the
owner intends to commence construction of a clean coal
facility or the clean coal SNG brownfield facility, the
owner of the facility shall file with the Commission a
carbon dioxide transportation or sequestration plan. The

SB0238 - 635 - LRB103 24882 DTM 51215 b
Commission shall hold a public hearing within 30 days
after receipt of the facility's carbon dioxide
transportation or sequestration plan. The Commission shall
post notice of the review on its website upon submission
of a carbon dioxide transportation or sequestration method
and shall accept written public comments. The Commission
shall take the comments into account when making its
decision.
The Commission may not approve a carbon dioxide
sequestration method if the owner or operator of the
sequestration site has not received (i) an Underground
Injection Control permit from the United States
Environmental Protection Agency, or from the Illinois
Environmental Protection Agency pursuant to the
Environmental Protection Act; (ii) an Underground
Injection Control permit from the Illinois Department of
Natural Resources pursuant to the Illinois Oil and Gas
Act; or (iii) an Underground Injection Control permit from
the United States Environmental Protection Agency or a
permit similar to items (i) or (ii) from the state in which
the sequestration site is located if the sequestration
will take place outside of Illinois. The Commission shall
approve or deny the carbon dioxide transportation or
sequestration method within 90 days after the receipt of
all required information.
(3) At least annually, the Illinois Environmental

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Protection Agency shall inspect all carbon dioxide
sequestration sites in Illinois. The Illinois
Environmental Protection Agency may, as often as deemed
necessary, monitor and conduct investigations of those
sites. The owner or operator of the sequestration site
must cooperate with the Illinois Environmental Protection
Agency investigations of carbon dioxide sequestration
sites.
If the Illinois Environmental Protection Agency
determines at any time a site creates conditions that
warrant the issuance of a seal order under Section 34 of
the Environmental Protection Act, then the Illinois
Environmental Protection Agency shall seal the site
pursuant to the Environmental Protection Act. If the
Illinois Environmental Protection Agency determines at any
time a carbon dioxide sequestration site creates
conditions that warrant the institution of a civil action
for an injunction under Section 43 of the Environmental
Protection Act, then the Illinois Environmental Protection
Agency shall request the State's Attorney or the Attorney
General institute such action. The Illinois Environmental
Protection Agency shall provide notice of any such actions
as soon as possible on its website. The SNG facility shall
incur all reasonable costs associated with any such
inspection or monitoring of the sequestration sites, and
these costs shall not be recoverable from utilities or

SB0238 - 637 - LRB103 24882 DTM 51215 b
their customers.
(4) (Blank).
(h-9) The clean coal SNG brownfield facility shall have
the right to recover prudently incurred increased costs or
reduced revenue resulting from any new or amendatory
legislation or other action. The State of Illinois pledges
that the State will not enact any law or take any action to:
(1) break, or repeal the authority for, sourcing
agreements approved by the Commission and entered into
between public utilities and the clean coal SNG brownfield
facility;
(2) deny public utilities full cost recovery for their
costs incurred under those sourcing agreements; or
(3) deny the clean coal SNG brownfield facility full
cost and revenue recovery as provided under those sourcing
agreements that are recoverable pursuant to subsection
(h-3) of this Section.
These pledges are for the benefit of the parties to those
sourcing agreements and the issuers and holders of bonds or
other obligations issued or incurred to finance or refinance
the clean coal SNG brownfield facility. The clean coal SNG
brownfield facility is authorized to include and refer to
these pledges in any financing agreement into which it may
enter in regard to those sourcing agreements.
The State of Illinois retains and reserves all other
rights to enact new or amendatory legislation or take any

SB0238 - 638 - LRB103 24882 DTM 51215 b
other action, without impairment of the right of the clean
coal SNG brownfield facility to recover prudently incurred
increased costs or reduced revenue resulting from the new or
amendatory legislation or other action, including, but not
limited to, such legislation or other action that would (i)
directly or indirectly raise the costs the clean coal SNG
brownfield facility must incur; (ii) directly or indirectly
place additional restrictions, regulations, or requirements on
the clean coal SNG brownfield facility; (iii) prohibit
sequestration in general or prohibit a specific sequestration
method or project; or (iv) increase minimum sequestration
requirements for the clean coal SNG brownfield facility to the
extent technically feasible. The clean coal SNG brownfield
facility shall have the right to recover prudently incurred
increased costs or reduced revenue resulting from the new or
amendatory legislation or other action as described in this
subsection (h-9).
(h-10) Contract costs for SNG incurred by an Illinois gas
utility are reasonable and prudent and recoverable through the
purchased gas adjustment clause and are not subject to review
or disallowance by the Commission. Contract costs are costs
incurred by the utility under the terms of a contract that
incorporates the terms stated in subsection (h) of this
Section as confirmed in writing by the Illinois Power Agency
as set forth in subsection (h) of this Section, which
confirmation shall be deemed conclusive, or as a consequence

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of or condition to its performance under the contract,
including (i) amounts paid for SNG under the SNG contract and
(ii) costs of transportation and storage services of SNG
purchased from interstate pipelines under federally approved
tariffs. The Illinois gas utility shall initiate a clean coal
SNG facility rider mechanism that (A) shall be applicable to
all customers who receive transportation service from the
utility, (B) shall be designed to have an equal percentage
impact on the transportation services rates of each class of
the utility's total customers, and (C) shall accurately
reflect the net customer savings, if any, and above market
costs, if any, under the SNG contract. Any contract, the terms
of which have been confirmed in writing by the Illinois Power
Agency as set forth in subsection (h) of this Section and the
performance of the parties under such contract cannot be
grounds for challenging prudence or cost recovery by the
utility through the purchased gas adjustment clause, and in
such cases, the Commission is directed not to consider, and
has no authority to consider, any attempted challenges.
The contracts entered into by Illinois gas utilities
pursuant to subsection (h) of this Section shall provide that
the utility retains the right to terminate the contract
without further obligation or liability to any party if the
contract has been impaired as a result of any legislative,
administrative, judicial, or other governmental action that is
taken that eliminates all or part of the prudence protection

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of this subsection (h-10) or denies the recoverability of all
or part of the contract costs through the purchased gas
adjustment clause. Should any Illinois gas utility exercise
its right under this subsection (h-10) to terminate the
contract, all contract costs incurred prior to termination are
and will be deemed reasonable, prudent, and recoverable as and
when incurred and not subject to review or disallowance by the
Commission. Any order, issued by the State requiring or
authorizing the discontinuation of the merchant function,
defined as the purchase and sale of natural gas by an Illinois
gas utility for the ultimate consumer in its service territory
shall include provisions necessary to prevent the impairment
of the value of any contract hereunder over its full term.
(h-11) All costs incurred by an Illinois gas utility in
procuring SNG from a clean coal SNG brownfield facility
pursuant to subsection (h-1) or a third-party marketer
pursuant to subsection (h-1) are reasonable and prudent and
recoverable through the purchased gas adjustment clause in
conjunction with a SNG brownfield facility rider mechanism and
are not subject to review or disallowance by the Commission;
provided that if a utility is required by law or otherwise
elects to connect the clean coal SNG brownfield facility to an
interstate pipeline, then the utility shall be entitled to
recover pursuant to its tariffs all just and reasonable costs
that are prudently incurred. Sourcing agreement costs are
costs incurred by the utility under the terms of a sourcing

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agreement that incorporates the terms stated in subsection
(h-1) of this Section as approved by the Commission as set
forth in subsection (h-4) of this Section, which approval
shall be deemed conclusive, or as a consequence of or
condition to its performance under the contract, including (i)
amounts paid for SNG under the SNG contract and (ii) costs of
transportation and storage services of SNG purchased from
interstate pipelines under federally approved tariffs. Any
sourcing agreement, the terms of which have been approved by
the Commission as set forth in subsection (h-4) of this
Section, and the performance of the parties under the sourcing
agreement cannot be grounds for challenging prudence or cost
recovery by the utility, and in these cases, the Commission is
directed not to consider, and has no authority to consider,
any attempted challenges.
(h-15) Reconciliation account. The clean coal SNG facility
shall establish a reconciliation account for the benefit of
the retail customers of the utilities that have entered into
contracts with the clean coal SNG facility pursuant to
subsection (h). The reconciliation account shall be maintained
and administered by an independent trustee that is mutually
agreed upon by the owners of the clean coal SNG facility, the
utilities, and the Commission in an interest-bearing account
in accordance with the following:
(1) The clean coal SNG facility shall conduct an
analysis annually within 60 days after receiving the

SB0238 - 642 - LRB103 24882 DTM 51215 b
necessary cost information, which shall be provided by the
gas utility within 6 months after the end of the preceding
calendar year, to determine (i) the average annual
contract SNG cost, which shall be calculated as the total
amount paid for SNG purchased from the clean coal SNG
facility over the preceding 12 months, plus the cost to
the utility of the required transportation and storage
services of SNG, divided by the total number of MMBtus of
SNG actually purchased from the clean coal SNG facility in
the preceding 12 months under the utility contract; (ii)
the average annual natural gas purchase cost, which shall
be calculated as the total annual supply costs paid for
baseload natural gas (excluding any SNG) purchased by such
utility over the preceding 12 months plus the costs of
transportation and storage services of such natural gas
(excluding such costs for SNG), divided by the total
number of MMbtus of baseload natural gas (excluding SNG)
actually purchased by the utility during the year; (iii)
the cost differential, which shall be the difference
between the average annual contract SNG cost and the
average annual natural gas purchase cost; and (iv) the
revenue share target which shall be the cost differential
multiplied by the total amount of SNG purchased over the
preceding 12 months under such utility contract.
(A) To the extent the annual average contract SNG
cost is less than the annual average natural gas

SB0238 - 643 - LRB103 24882 DTM 51215 b
purchase cost, the utility shall credit an amount
equal to the revenue share target to the
reconciliation account. Such credit payment shall be
made monthly starting within 30 days after the
completed analysis in this subsection (h-15) and based
on collections from all customers via a line item
charge in all customer bills designed to have an equal
percentage impact on the transportation services of
each class of customers. Credit payments made pursuant
to this subparagraph (A) shall be deemed prudent and
reasonable and not subject to Commission prudence
review.
(B) To the extent the annual average contract SNG
cost is greater than the annual average natural gas
purchase cost, the reconciliation account shall be
used to provide a credit equal to the revenue share
target to the utilities to be used to reduce the
utility's natural gas costs through the purchased gas
adjustment clause. Such payment shall be made within
30 days after the completed analysis pursuant to this
subsection (h-15), but only to the extent that the
reconciliation account has a positive balance.
(2) At the conclusion of the term of the SNG contracts
pursuant to subsection (h) and the completion of the final
annual analysis pursuant to this subsection (h-15), to the
extent the facility owes any amount to retail customers,

SB0238 - 644 - LRB103 24882 DTM 51215 b
amounts in the account shall be credited to retail
customers to the extent the owed amount is repaid; 50% of
any additional amount in the reconciliation account shall
be distributed to the utilities to be used to reduce the
utilities' natural gas costs through the purchase gas
adjustment clause with the remaining amount distributed to
the clean coal SNG facility. Such payment shall be made
within 30 days after the last completed analysis pursuant
to this subsection (h-15). If the facility has repaid all
owed amounts, if any, to retail customers and has
distributed 50% of any additional amount in the account to
the utilities, then the owners of the clean coal SNG
facility shall have no further obligation to the utility
or the retail customers.
If, at the conclusion of the term of the contracts
pursuant to subsection (h) and the completion of the final
annual analysis pursuant to this subsection (h-15), the
facility owes any amount to retail customers and the
account has been depleted, then the clean coal SNG
facility shall be liable for any remaining amount owed to
the retail customers. The clean coal SNG facility shall
market the daily production of SNG and distribute on a
monthly basis 5% of the amounts collected with respect to
such future sales to the utilities in proportion to each
utility's SNG contract to be used to reduce the utility's
natural gas costs through the purchase gas adjustment

SB0238 - 645 - LRB103 24882 DTM 51215 b
clause; such payments to the utility shall continue until
either 15 years after the conclusion of the contract or
such time as the sum of such payments equals the remaining
amount owed to the retail customers at the end of the
contract, whichever is earlier. If the debt to the retail
customers is not repaid within 15 years after the
conclusion of the contract, then the owner of the clean
coal SNG facility must sell the facility, and all proceeds
from that sale must be used to repay any amount owed to the
retail customers under this subsection (h-15).
The retail customers shall have first priority in
recovering that debt above any creditors, except the
secured lenders to the extent that the secured lenders
have any secured debt outstanding, including any parent
companies or affiliates of the clean coal SNG facility.
(3) 50% of all additional net revenue, defined as
miscellaneous net revenue after cost allowance and above
the budgeted estimate established for revenue pursuant to
subsection (h), including sale of substitute natural gas
derived from the clean coal SNG facility above the
nameplate capacity of the facility and other by-products
produced by the facility, shall be credited to the
reconciliation account on an annual basis with such
payment made within 30 days after the end of each calendar
year during the term of the contract.
(4) The clean coal SNG facility shall each year,

SB0238 - 646 - LRB103 24882 DTM 51215 b
starting in the facility's first year of commercial
operation, file with the Commission, in such form as the
Commission shall require, a report as to the
reconciliation account. The annual report must contain the
following information:
(A) the revenue share target amount;
(B) the amount credited or debited to the
reconciliation account during the year;
(C) the amount credited to the utilities to be
used to reduce the utilities natural gas costs though
the purchase gas adjustment clause;
(D) the total amount of reconciliation account at
the beginning and end of the year;
(E) the total amount of consumer savings to date;
and
(F) any additional information the Commission may
require.
When any report is erroneous or defective or appears to
the Commission to be erroneous or defective, the Commission
may notify the clean coal SNG facility to amend the report
within 30 days; before or after the termination of the 30-day
period, the Commission may examine the trustee of the
reconciliation account or the officers, agents, employees,
books, records, or accounts of the clean coal SNG facility and
correct such items in the report as upon such examination the
Commission may find defective or erroneous. All reports shall

SB0238 - 647 - LRB103 24882 DTM 51215 b
be under oath.
All reports made to the Commission by the clean coal SNG
facility and the contents of the reports shall be open to
public inspection and shall be deemed a public record under
the Freedom of Information Act. Such reports shall be
preserved in the office of the Commission. The Commission
shall publish an annual summary of the reports prior to
February 1 of the following year. The annual summary shall be
made available to the public on the Commission's website and
shall be submitted to the General Assembly.
Any facility that fails to file the report required under
this paragraph (4) to the Commission within the time specified
or to make specific answer to any question propounded by the
Commission within 30 days after the time it is lawfully
required to do so, or within such further time not to exceed 90
days as may be allowed by the Commission in its discretion,
shall pay a penalty of $500 to the Commission for each day it
is in default.
Any person who willfully makes any false report to the
Commission or to any member, officer, or employee thereof, any
person who willfully in a report withholds or fails to provide
material information to which the Commission is entitled under
this paragraph (4) and which information is either required to
be filed by statute, rule, regulation, order, or decision of
the Commission or has been requested by the Commission, and
any person who willfully aids or abets such person shall be

SB0238 - 648 - LRB103 24882 DTM 51215 b
guilty of a Class A misdemeanor.
(h-20) The General Assembly authorizes the Illinois
Finance Authority to issue bonds to the maximum extent
permitted to finance coal gasification facilities described in
this Section, which constitute both "industrial projects"
under Article 801 of the Illinois Finance Authority Act and
"clean coal and energy projects" under Sections 825-65 through
825-75 of the Illinois Finance Authority Act.
Administrative costs incurred by the Illinois Finance
Authority in performance of this subsection (h-20) shall be
subject to reimbursement by the clean coal SNG facility on
terms as the Illinois Finance Authority and the clean coal SNG
facility may agree. The utility and its customers shall have
no obligation to reimburse the clean coal SNG facility or the
Illinois Finance Authority for any such costs.
(h-25) The State of Illinois pledges that the State may
not enact any law or take any action to (1) break or repeal the
authority for SNG purchase contracts entered into between
public gas utilities and the clean coal SNG facility pursuant
to subsection (h) of this Section or (2) deny public gas
utilities their full cost recovery for contract costs, as
defined in subsection (h-10), that are incurred under such SNG
purchase contracts. These pledges are for the benefit of the
parties to such SNG purchase contracts and the issuers and
holders of bonds or other obligations issued or incurred to
finance or refinance the clean coal SNG facility. The

SB0238 - 649 - LRB103 24882 DTM 51215 b
beneficiaries are authorized to include and refer to these
pledges in any finance agreement into which they may enter in
regard to such contracts.
(h-30) The State of Illinois retains and reserves all
other rights to enact new or amendatory legislation or take
any other action, including, but not limited to, such
legislation or other action that would (1) directly or
indirectly raise the costs that the clean coal SNG facility
must incur; (2) directly or indirectly place additional
restrictions, regulations, or requirements on the clean coal
SNG facility; (3) prohibit sequestration in general or
prohibit a specific sequestration method or project; or (4)
increase minimum sequestration requirements.
(i) If a gas utility or an affiliate of a gas utility has
an ownership interest in any entity that produces or sells
synthetic natural gas, Article VII of this Act shall apply.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 180. The Illinois Horse Racing Act of 1975 is
amended by changing Sections 12.1 and 12.2 as follows:
(230 ILCS 5/12.1) (from Ch. 8, par. 37-12.1)
Sec. 12.1. (a) The General Assembly finds that the
Illinois Racing Industry does not include a fair proportion of
minority or female workers.
Therefore, the General Assembly urges that the job

SB0238 - 650 - LRB103 24882 DTM 51215 b
training institutes, trade associations and employers involved
in the Illinois Horse Racing Industry take affirmative action
to encourage equal employment opportunity to all workers
regardless of race, color, creed or sex.
Before an organization license, inter-track wagering
license or inter-track wagering location license can be
granted, the applicant for any such license shall execute and
file with the Board a good faith affirmative action plan to
recruit, train and upgrade minorities and females in all
classifications with the applicant for license. One year after
issuance of any such license, and each year thereafter, the
licensee shall file a report with the Board evidencing and
certifying compliance with the originally filed affirmative
action plan.
(b) At least 10% of the total amount of all State contracts
for the infrastructure improvement of any race track grounds
in this State shall be let to minority-owned businesses, or
women-owned businesses, veteran-owned businesses, or
businesses owned by persons with a disability. "State
contract", "minority-owned business"and "women-owned
business", "veteran-owned business", and "business owned by a
person with a disability" shall have the meanings ascribed to
them under the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act.
(Source: P.A. 100-391, eff. 8-25-17.)

SB0238 - 651 - LRB103 24882 DTM 51215 b
(230 ILCS 5/12.2)
Sec. 12.2. Business enterprise program.
(a) For the purposes of this Section, the terms
"minority", "minority-owned business", "woman", "women-owned
business", "veteran", "veteran-owned business", "person with a
disability", and "business owned by a person with a
disability" have the meanings ascribed to them in the Business
Enterprise for Minorities, Women, Veterans, and Persons with
Disabilities Act.
(b) The Board shall, by rule, establish goals for the
award of contracts by each organization licensee or
inter-track wagering licensee to businesses owned by
minorities, women, veterans, and persons with disabilities,
expressed as percentages of an organization licensee's or
inter-track wagering licensee's total dollar amount of
contracts awarded during each calendar year. Each organization
licensee or inter-track wagering licensee must make every
effort to meet the goals established by the Board pursuant to
this Section. When setting the goals for the award of
contracts, the Board shall not include contracts where: (1)
licensees are purchasing goods or services from vendors or
suppliers or in markets where there are no or a limited number
of minority-owned businesses, women-owned businesses,
veteran-owned businesses, or businesses owned by persons with
disabilities that would be sufficient to satisfy the goal; (2)
there are no or a limited number of suppliers licensed by the

SB0238 - 652 - LRB103 24882 DTM 51215 b
Board; (3) the licensee or its parent company owns a company
that provides the goods or services; or (4) the goods or
services are provided to the licensee by a publicly traded
company.
(c) Each organization licensee or inter-track wagering
licensee shall file with the Board an annual report of its
utilization of minority-owned businesses, women-owned
businesses, veteran-owned businesses, and businesses owned by
persons with disabilities during the preceding calendar year.
The reports shall include a self-evaluation of the efforts of
the organization licensee or inter-track wagering licensee to
meet its goals under this Section.
(d) The organization licensee or inter-track wagering
licensee shall have the right to request a waiver from the
requirements of this Section. The Board shall grant the waiver
where the organization licensee or inter-track wagering
licensee demonstrates that there has been made a good faith
effort to comply with the goals for participation by
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities.
(e) If the Board determines that its goals and policies
are not being met by any organization licensee or inter-track
wagering licensee, then the Board may:
(1) adopt remedies for such violations; and
(2) recommend that the organization licensee or

SB0238 - 653 - LRB103 24882 DTM 51215 b
inter-track wagering licensee provide additional
opportunities for participation by minority-owned
businesses, women-owned businesses, veteran-owned
businesses, and businesses owned by persons with
disabilities; such recommendations may include, but shall
not be limited to:
(A) assurances of stronger and better focused
solicitation efforts to obtain more minority-owned
businesses, women-owned businesses, veteran-owned
businesses, and businesses owned by persons with
disabilities as potential sources of supply;
(B) division of job or project requirements, when
economically feasible, into tasks or quantities to
permit participation of minority-owned businesses,
women-owned businesses, veteran-owned businesses, and
businesses owned by persons with disabilities;
(C) elimination of extended experience or
capitalization requirements, when programmatically
feasible, to permit participation of minority-owned
businesses, women-owned businesses, veteran-owned
businesses, and businesses owned by persons with
disabilities;
(D) identification of specific proposed contracts
as particularly attractive or appropriate for
participation by minority-owned businesses,
women-owned businesses, veteran-owned businesses, and

SB0238 - 654 - LRB103 24882 DTM 51215 b
businesses owned by persons with disabilities, such
identification to result from and be coupled with the
efforts of items (A) through (C); and
(E) implementation of regulations established for
the use of the sheltered market process.
(f) The Board shall file, no later than March 1 of each
year, an annual report that shall detail the level of
achievement toward the goals specified in this Section over
the 3 most recent fiscal years. The annual report shall
include, but need not be limited to:
(1) a summary detailing expenditures subject to the
goals, the actual goals specified, and the goals attained
by each organization licensee or inter-track wagering
licensee;
(2) a summary of the number of contracts awarded and
the average contract amount by each organization licensee
or inter-track wagering licensee;
(3) an analysis of the level of overall goal
achievement concerning purchases from minority-owned
businesses, women-owned businesses, veteran-owned
businesses, and businesses owned by persons with
disabilities;
(4) an analysis of the number of minority-owned
businesses, women-owned businesses, veteran-owned
businesses, and businesses owned by persons with
disabilities that are certified under the program as well

SB0238 - 655 - LRB103 24882 DTM 51215 b
as the number of those businesses that received State
procurement contracts; and
(5) (blank).
(Source: P.A. 99-78, eff. 7-20-15; 99-891, eff. 1-1-17;
100-391, eff. 8-25-17.)
Section 185. The Riverboat Gambling Act is amended by
changing Sections 4, 7, 7.6, 7.14, and 11.2 as follows:
(230 ILCS 10/4) (from Ch. 120, par. 2404)
Sec. 4. Definitions. As used in this Act:
"Board" means the Illinois Gaming Board.
"Occupational license" means a license issued by the Board
to a person or entity to perform an occupation which the Board
has identified as requiring a license to engage in riverboat
gambling, casino gambling, or gaming pursuant to an
organization gaming license issued under this Act in Illinois.
"Gambling game" includes, but is not limited to, baccarat,
twenty-one, poker, craps, slot machine, video game of chance,
roulette wheel, klondike table, punchboard, faro layout, keno
layout, numbers ticket, push card, jar ticket, or pull tab
which is authorized by the Board as a wagering device under
this Act.
"Riverboat" means a self-propelled excursion boat, a
permanently moored barge, or permanently moored barges that
are permanently fixed together to operate as one vessel, on

SB0238 - 656 - LRB103 24882 DTM 51215 b
which lawful gambling is authorized and licensed as provided
in this Act.
"Slot machine" means any mechanical, electrical, or other
device, contrivance, or machine that is authorized by the
Board as a wagering device under this Act which, upon
insertion of a coin, currency, token, or similar object
therein, or upon payment of any consideration whatsoever, is
available to play or operate, the play or operation of which
may deliver or entitle the person playing or operating the
machine to receive cash, premiums, merchandise, tokens, or
anything of value whatsoever, whether the payoff is made
automatically from the machine or in any other manner
whatsoever. A slot machine:
(1) may utilize spinning reels or video displays or
both;
(2) may or may not dispense coins, tickets, or tokens
to winning patrons;
(3) may use an electronic credit system for receiving
wagers and making payouts; and
(4) may simulate a table game.
"Slot machine" does not include table games authorized by
the Board as a wagering device under this Act.
"Managers license" means a license issued by the Board to
a person or entity to manage gambling operations conducted by
the State pursuant to Section 7.3.
"Dock" means the location where a riverboat moors for the

SB0238 - 657 - LRB103 24882 DTM 51215 b
purpose of embarking passengers for and disembarking
passengers from the riverboat.
"Gross receipts" means the total amount of money exchanged
for the purchase of chips, tokens, or electronic cards by
riverboat patrons.
"Adjusted gross receipts" means the gross receipts less
winnings paid to wagerers.
"Cheat" means to alter the selection of criteria which
determine the result of a gambling game or the amount or
frequency of payment in a gambling game.
"Gambling operation" means the conduct of gambling games
authorized under this Act upon a riverboat or in a casino or
authorized under this Act and the Illinois Horse Racing Act of
1975 at an organization gaming facility.
"License bid" means the lump sum amount of money that an
applicant bids and agrees to pay the State in return for an
owners license that is issued or re-issued on or after July 1,
2003.
"Table game" means a live gaming apparatus upon which
gaming is conducted or that determines an outcome that is the
object of a wager, including, but not limited to, baccarat,
twenty-one, blackjack, poker, craps, roulette wheel, klondike
table, punchboard, faro layout, keno layout, numbers ticket,
push card, jar ticket, pull tab, or other similar games that
are authorized by the Board as a wagering device under this
Act. "Table game" does not include slot machines or video

SB0238 - 658 - LRB103 24882 DTM 51215 b
games of chance.
The terms "minority person", "woman", "veteran", and
"person with a disability" shall have the same meaning as
defined in Section 2 of the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act.
"Casino" means a facility at which lawful gambling is
authorized as provided in this Act.
"Owners license" means a license to conduct riverboat or
casino gambling operations, but does not include an
organization gaming license.
"Licensed owner" means a person who holds an owners
license.
"Organization gaming facility" means that portion of an
organization licensee's racetrack facilities at which gaming
authorized under Section 7.7 is conducted.
"Organization gaming license" means a license issued by
the Illinois Gaming Board under Section 7.7 of this Act
authorizing gaming pursuant to that Section at an organization
gaming facility.
"Organization gaming licensee" means an entity that holds
an organization gaming license.
"Organization licensee" means an entity authorized by the
Illinois Racing Board to conduct pari-mutuel wagering in
accordance with the Illinois Horse Racing Act of 1975. With
respect only to gaming pursuant to an organization gaming

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license, "organization licensee" includes the authorization
for gaming created under subsection (a) of Section 56 of the
Illinois Horse Racing Act of 1975.
(Source: P.A. 100-391, eff. 8-25-17; 101-31, eff. 6-28-19.)
(230 ILCS 10/7) (from Ch. 120, par. 2407)
Sec. 7. Owners licenses.
(a) The Board shall issue owners licenses to persons or
entities that apply for such licenses upon payment to the
Board of the non-refundable license fee as provided in
subsection (e) or (e-5) and upon a determination by the Board
that the applicant is eligible for an owners license pursuant
to this Act and the rules of the Board. From December 15, 2008
(the effective date of Public Act 95-1008) until (i) 3 years
after December 15, 2008 (the effective date of Public Act
95-1008), (ii) the date any organization licensee begins to
operate a slot machine or video game of chance under the
Illinois Horse Racing Act of 1975 or this Act, (iii) the date
that payments begin under subsection (c-5) of Section 13 of
this Act, (iv) the wagering tax imposed under Section 13 of
this Act is increased by law to reflect a tax rate that is at
least as stringent or more stringent than the tax rate
contained in subsection (a-3) of Section 13, or (v) when an
owners licensee holding a license issued pursuant to Section
7.1 of this Act begins conducting gaming, whichever occurs
first, as a condition of licensure and as an alternative

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source of payment for those funds payable under subsection
(c-5) of Section 13 of this Act, any owners licensee that holds
or receives its owners license on or after May 26, 2006 (the
effective date of Public Act 94-804), other than an owners
licensee operating a riverboat with adjusted gross receipts in
calendar year 2004 of less than $200,000,000, must pay into
the Horse Racing Equity Trust Fund, in addition to any other
payments required under this Act, an amount equal to 3% of the
adjusted gross receipts received by the owners licensee. The
payments required under this Section shall be made by the
owners licensee to the State Treasurer no later than 3:00
o'clock p.m. of the day after the day when the adjusted gross
receipts were received by the owners licensee. A person or
entity is ineligible to receive an owners license if:
(1) the person has been convicted of a felony under
the laws of this State, any other state, or the United
States;
(2) the person has been convicted of any violation of
Article 28 of the Criminal Code of 1961 or the Criminal
Code of 2012, or substantially similar laws of any other
jurisdiction;
(3) the person has submitted an application for a
license under this Act which contains false information;
(4) the person is a member of the Board;
(5) a person defined in (1), (2), (3), or (4) is an
officer, director, or managerial employee of the entity;

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(6) the entity employs a person defined in (1), (2),
(3), or (4) who participates in the management or
operation of gambling operations authorized under this
Act;
(7) (blank); or
(8) a license of the person or entity issued under
this Act, or a license to own or operate gambling
facilities in any other jurisdiction, has been revoked.
The Board is expressly prohibited from making changes to
the requirement that licensees make payment into the Horse
Racing Equity Trust Fund without the express authority of the
Illinois General Assembly and making any other rule to
implement or interpret Public Act 95-1008. For the purposes of
this paragraph, "rules" is given the meaning given to that
term in Section 1-70 of the Illinois Administrative Procedure
Act.
(b) In determining whether to grant an owners license to
an applicant, the Board shall consider:
(1) the character, reputation, experience, and
financial integrity of the applicants and of any other or
separate person that either:
(A) controls, directly or indirectly, such
applicant; or
(B) is controlled, directly or indirectly, by such
applicant or by a person which controls, directly or
indirectly, such applicant;

SB0238 - 662 - LRB103 24882 DTM 51215 b
(2) the facilities or proposed facilities for the
conduct of gambling;
(3) the highest prospective total revenue to be
derived by the State from the conduct of gambling;
(4) the extent to which the ownership of the applicant
reflects the diversity of the State by including minority
persons, women, veterans, and persons with a disability
and the good faith affirmative action plan of each
applicant to recruit, train and upgrade minority persons,
women, veterans, and persons with a disability in all
employment classifications; the Board shall further
consider granting an owners license and giving preference
to an applicant under this Section to applicants in which
minority persons and women hold ownership interest of at
least 16% and 4%, respectively;
(4.5) the extent to which the ownership of the
applicant includes veterans of service in the armed forces
of the United States, and the good faith affirmative
action plan of each applicant to recruit, train, and
upgrade veterans of service in the armed forces of the
United States in all employment classifications;
(5) the financial ability of the applicant to purchase
and maintain adequate liability and casualty insurance;
(6) whether the applicant has adequate capitalization
to provide and maintain, for the duration of a license, a
riverboat or casino;

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(7) the extent to which the applicant exceeds or meets
other standards for the issuance of an owners license
which the Board may adopt by rule;
(8) the amount of the applicant's license bid;
(9) the extent to which the applicant or the proposed
host municipality plans to enter into revenue sharing
agreements with communities other than the host
municipality;
(10) the extent to which the ownership of an applicant
includes the most qualified number of minority persons,
women, and persons with a disability; and
(11) whether the applicant has entered into a fully
executed construction project labor agreement with the
applicable local building trades council.
(c) Each owners license shall specify the place where the
casino shall operate or the riverboat shall operate and dock.
(d) Each applicant shall submit with his or her
application, on forms provided by the Board, 2 sets of his or
her fingerprints.
(e) In addition to any licenses authorized under
subsection (e-5) of this Section, the Board may issue up to 10
licenses authorizing the holders of such licenses to own
riverboats. In the application for an owners license, the
applicant shall state the dock at which the riverboat is based
and the water on which the riverboat will be located. The Board
shall issue 5 licenses to become effective not earlier than

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January 1, 1991. Three of such licenses shall authorize
riverboat gambling on the Mississippi River, or, with approval
by the municipality in which the riverboat was docked on
August 7, 2003 and with Board approval, be authorized to
relocate to a new location, in a municipality that (1) borders
on the Mississippi River or is within 5 miles of the city
limits of a municipality that borders on the Mississippi River
and (2) on August 7, 2003, had a riverboat conducting
riverboat gambling operations pursuant to a license issued
under this Act; one of which shall authorize riverboat
gambling from a home dock in the city of East St. Louis; and
one of which shall authorize riverboat gambling from a home
dock in the City of Alton. One other license shall authorize
riverboat gambling on the Illinois River in the City of East
Peoria or, with Board approval, shall authorize land-based
gambling operations anywhere within the corporate limits of
the City of Peoria. The Board shall issue one additional
license to become effective not earlier than March 1, 1992,
which shall authorize riverboat gambling on the Des Plaines
River in Will County. The Board may issue 4 additional
licenses to become effective not earlier than March 1, 1992.
In determining the water upon which riverboats will operate,
the Board shall consider the economic benefit which riverboat
gambling confers on the State, and shall seek to assure that
all regions of the State share in the economic benefits of
riverboat gambling.

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In granting all licenses, the Board may give favorable
consideration to economically depressed areas of the State, to
applicants presenting plans which provide for significant
economic development over a large geographic area, and to
applicants who currently operate non-gambling riverboats in
Illinois. The Board shall review all applications for owners
licenses, and shall inform each applicant of the Board's
decision. The Board may grant an owners license to an
applicant that has not submitted the highest license bid, but
if it does not select the highest bidder, the Board shall issue
a written decision explaining why another applicant was
selected and identifying the factors set forth in this Section
that favored the winning bidder. The fee for issuance or
renewal of a license pursuant to this subsection (e) shall be
$250,000.
(e-5) In addition to licenses authorized under subsection
(e) of this Section:
(1) the Board may issue one owners license authorizing
the conduct of casino gambling in the City of Chicago;
(2) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the City of Danville;
(3) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the City of Waukegan;
(4) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the City of Rockford;
(5) the Board may issue one owners license authorizing

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the conduct of riverboat gambling in a municipality that
is wholly or partially located in one of the following
townships of Cook County: Bloom, Bremen, Calumet, Rich,
Thornton, or Worth Township; and
(6) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the unincorporated
area of Williamson County adjacent to the Big Muddy River.
Except for the license authorized under paragraph (1),
each application for a license pursuant to this subsection
(e-5) shall be submitted to the Board no later than 120 days
after June 28, 2019 (the effective date of Public Act 101-31).
All applications for a license under this subsection (e-5)
shall include the nonrefundable application fee and the
nonrefundable background investigation fee as provided in
subsection (d) of Section 6 of this Act. In the event that an
applicant submits an application for a license pursuant to
this subsection (e-5) prior to June 28, 2019 (the effective
date of Public Act 101-31), such applicant shall submit the
nonrefundable application fee and background investigation fee
as provided in subsection (d) of Section 6 of this Act no later
than 6 months after June 28, 2019 (the effective date of Public
Act 101-31).
The Board shall consider issuing a license pursuant to
paragraphs (1) through (6) of this subsection only after the
corporate authority of the municipality or the county board of
the county in which the riverboat or casino shall be located

SB0238 - 667 - LRB103 24882 DTM 51215 b
has certified to the Board the following:
(i) that the applicant has negotiated with the
corporate authority or county board in good faith;
(ii) that the applicant and the corporate authority or
county board have mutually agreed on the permanent
location of the riverboat or casino;
(iii) that the applicant and the corporate authority
or county board have mutually agreed on the temporary
location of the riverboat or casino;
(iv) that the applicant and the corporate authority or
the county board have mutually agreed on the percentage of
revenues that will be shared with the municipality or
county, if any;
(v) that the applicant and the corporate authority or
county board have mutually agreed on any zoning,
licensing, public health, or other issues that are within
the jurisdiction of the municipality or county;
(vi) that the corporate authority or county board has
passed a resolution or ordinance in support of the
riverboat or casino in the municipality or county;
(vii) the applicant for a license under paragraph (1)
has made a public presentation concerning its casino
proposal; and
(viii) the applicant for a license under paragraph (1)
has prepared a summary of its casino proposal and such
summary has been posted on a public website of the

SB0238 - 668 - LRB103 24882 DTM 51215 b
municipality or the county.
At least 7 days before the corporate authority of a
municipality or county board of the county submits a
certification to the Board concerning items (i) through (viii)
of this subsection, it shall hold a public hearing to discuss
items (i) through (viii), as well as any other details
concerning the proposed riverboat or casino in the
municipality or county. The corporate authority or county
board must subsequently memorialize the details concerning the
proposed riverboat or casino in a resolution that must be
adopted by a majority of the corporate authority or county
board before any certification is sent to the Board. The Board
shall not alter, amend, change, or otherwise interfere with
any agreement between the applicant and the corporate
authority of the municipality or county board of the county
regarding the location of any temporary or permanent facility.
In addition, within 10 days after June 28, 2019 (the
effective date of Public Act 101-31), the Board, with consent
and at the expense of the City of Chicago, shall select and
retain the services of a nationally recognized casino gaming
feasibility consultant. Within 45 days after June 28, 2019
(the effective date of Public Act 101-31), the consultant
shall prepare and deliver to the Board a study concerning the
feasibility of, and the ability to finance, a casino in the
City of Chicago. The feasibility study shall be delivered to
the Mayor of the City of Chicago, the Governor, the President

SB0238 - 669 - LRB103 24882 DTM 51215 b
of the Senate, and the Speaker of the House of
Representatives. Ninety days after receipt of the feasibility
study, the Board shall make a determination, based on the
results of the feasibility study, whether to recommend to the
General Assembly that the terms of the license under paragraph
(1) of this subsection (e-5) should be modified. The Board may
begin accepting applications for the owners license under
paragraph (1) of this subsection (e-5) upon the determination
to issue such an owners license.
In addition, prior to the Board issuing the owners license
authorized under paragraph (4) of subsection (e-5), an impact
study shall be completed to determine what location in the
city will provide the greater impact to the region, including
the creation of jobs and the generation of tax revenue.
(e-10) The licenses authorized under subsection (e-5) of
this Section shall be issued within 12 months after the date
the license application is submitted. If the Board does not
issue the licenses within that time period, then the Board
shall give a written explanation to the applicant as to why it
has not reached a determination and when it reasonably expects
to make a determination. The fee for the issuance or renewal of
a license issued pursuant to this subsection (e-10) shall be
$250,000. Additionally, a licensee located outside of Cook
County shall pay a minimum initial fee of $17,500 per gaming
position, and a licensee located in Cook County shall pay a
minimum initial fee of $30,000 per gaming position. The

SB0238 - 670 - LRB103 24882 DTM 51215 b
initial fees payable under this subsection (e-10) shall be
deposited into the Rebuild Illinois Projects Fund. If at any
point after June 1, 2020 there are no pending applications for
a license under subsection (e-5) and not all licenses
authorized under subsection (e-5) have been issued, then the
Board shall reopen the license application process for those
licenses authorized under subsection (e-5) that have not been
issued. The Board shall follow the licensing process provided
in subsection (e-5) with all time frames tied to the last date
of a final order issued by the Board under subsection (e-5)
rather than the effective date of the amendatory Act.
(e-15) Each licensee of a license authorized under
subsection (e-5) of this Section shall make a reconciliation
payment 3 years after the date the licensee begins operating
in an amount equal to 75% of the adjusted gross receipts for
the most lucrative 12-month period of operations, minus an
amount equal to the initial payment per gaming position paid
by the specific licensee. Each licensee shall pay a
$15,000,000 reconciliation fee upon issuance of an owners
license. If this calculation results in a negative amount,
then the licensee is not entitled to any reimbursement of fees
previously paid. This reconciliation payment may be made in
installments over a period of no more than 6 years.
All payments by licensees under this subsection (e-15)
shall be deposited into the Rebuild Illinois Projects Fund.
(e-20) In addition to any other revocation powers granted

SB0238 - 671 - LRB103 24882 DTM 51215 b
to the Board under this Act, the Board may revoke the owners
license of a licensee which fails to begin conducting gambling
within 15 months of receipt of the Board's approval of the
application if the Board determines that license revocation is
in the best interests of the State.
(f) The first 10 owners licenses issued under this Act
shall permit the holder to own up to 2 riverboats and equipment
thereon for a period of 3 years after the effective date of the
license. Holders of the first 10 owners licenses must pay the
annual license fee for each of the 3 years during which they
are authorized to own riverboats.
(g) Upon the termination, expiration, or revocation of
each of the first 10 licenses, which shall be issued for a
3-year period, all licenses are renewable annually upon
payment of the fee and a determination by the Board that the
licensee continues to meet all of the requirements of this Act
and the Board's rules. However, for licenses renewed on or
after the effective date of this amendatory Act of the 102nd
General Assembly, renewal shall be for a period of 4 years.
(h) An owners license, except for an owners license issued
under subsection (e-5) of this Section, shall entitle the
licensee to own up to 2 riverboats.
An owners licensee of a casino or riverboat that is
located in the City of Chicago pursuant to paragraph (1) of
subsection (e-5) of this Section shall limit the number of
gaming positions to 4,000 for such owner. An owners licensee

SB0238 - 672 - LRB103 24882 DTM 51215 b
authorized under subsection (e) or paragraph (2), (3), (4), or
(5) of subsection (e-5) of this Section shall limit the number
of gaming positions to 2,000 for any such owners license. An
owners licensee authorized under paragraph (6) of subsection
(e-5) of this Section shall limit the number of gaming
positions to 1,200 for such owner. The initial fee for each
gaming position obtained on or after June 28, 2019 (the
effective date of Public Act 101-31) shall be a minimum of
$17,500 for licensees not located in Cook County and a minimum
of $30,000 for licensees located in Cook County, in addition
to the reconciliation payment, as set forth in subsection
(e-15) of this Section. The fees under this subsection (h)
shall be deposited into the Rebuild Illinois Projects Fund.
The fees under this subsection (h) that are paid by an owners
licensee authorized under subsection (e) shall be paid by July
1, 2021.
Each owners licensee under subsection (e) of this Section
shall reserve its gaming positions within 30 days after June
28, 2019 (the effective date of Public Act 101-31). The Board
may grant an extension to this 30-day period, provided that
the owners licensee submits a written request and explanation
as to why it is unable to reserve its positions within the
30-day period.
Each owners licensee under subsection (e-5) of this
Section shall reserve its gaming positions within 30 days
after issuance of its owners license. The Board may grant an

SB0238 - 673 - LRB103 24882 DTM 51215 b
extension to this 30-day period, provided that the owners
licensee submits a written request and explanation as to why
it is unable to reserve its positions within the 30-day
period.
A licensee may operate both of its riverboats
concurrently, provided that the total number of gaming
positions on both riverboats does not exceed the limit
established pursuant to this subsection. Riverboats licensed
to operate on the Mississippi River and the Illinois River
south of Marshall County shall have an authorized capacity of
at least 500 persons. Any other riverboat licensed under this
Act shall have an authorized capacity of at least 400 persons.
(h-5) An owners licensee who conducted gambling operations
prior to January 1, 2012 and obtains positions pursuant to
Public Act 101-31 shall make a reconciliation payment 3 years
after any additional gaming positions begin operating in an
amount equal to 75% of the owners licensee's average gross
receipts for the most lucrative 12-month period of operations
minus an amount equal to the initial fee that the owners
licensee paid per additional gaming position. For purposes of
this subsection (h-5), "average gross receipts" means (i) the
increase in adjusted gross receipts for the most lucrative
12-month period of operations over the adjusted gross receipts
for 2019, multiplied by (ii) the percentage derived by
dividing the number of additional gaming positions that an
owners licensee had obtained by the total number of gaming

SB0238 - 674 - LRB103 24882 DTM 51215 b
positions operated by the owners licensee. If this calculation
results in a negative amount, then the owners licensee is not
entitled to any reimbursement of fees previously paid. This
reconciliation payment may be made in installments over a
period of no more than 6 years. These reconciliation payments
shall be deposited into the Rebuild Illinois Projects Fund.
(i) A licensed owner is authorized to apply to the Board
for and, if approved therefor, to receive all licenses from
the Board necessary for the operation of a riverboat or
casino, including a liquor license, a license to prepare and
serve food for human consumption, and other necessary
licenses. All use, occupation, and excise taxes which apply to
the sale of food and beverages in this State and all taxes
imposed on the sale or use of tangible personal property apply
to such sales aboard the riverboat or in the casino.
(j) The Board may issue or re-issue a license authorizing
a riverboat to dock in a municipality or approve a relocation
under Section 11.2 only if, prior to the issuance or
re-issuance of the license or approval, the governing body of
the municipality in which the riverboat will dock has by a
majority vote approved the docking of riverboats in the
municipality. The Board may issue or re-issue a license
authorizing a riverboat to dock in areas of a county outside
any municipality or approve a relocation under Section 11.2
only if, prior to the issuance or re-issuance of the license or
approval, the governing body of the county has by a majority

SB0238 - 675 - LRB103 24882 DTM 51215 b
vote approved of the docking of riverboats within such areas.
(k) An owners licensee may conduct land-based gambling
operations upon approval by the Board and payment of a fee of
$250,000, which shall be deposited into the State Gaming Fund.
(l) An owners licensee may conduct gaming at a temporary
facility pending the construction of a permanent facility or
the remodeling or relocation of an existing facility to
accommodate gaming participants for up to 24 months after the
temporary facility begins to conduct gaming. Upon request by
an owners licensee and upon a showing of good cause by the
owners licensee, the Board shall extend the period during
which the licensee may conduct gaming at a temporary facility
by up to 12 months. The Board shall make rules concerning the
conduct of gaming from temporary facilities.
(Source: P.A. 101-31, eff. 6-28-19; 101-648, eff. 6-30-20;
102-13, eff. 6-10-21; 102-558, eff. 8-20-21.)
(230 ILCS 10/7.6)
Sec. 7.6. Business enterprise program.
(a) For the purposes of this Section, the terms
"minority", "minority-owned business", "woman", "women-owned
business", "person with a disability", "veteran",
"veteran-owned business", and "business owned by a person with
a disability" have the meanings ascribed to them in the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.

SB0238 - 676 - LRB103 24882 DTM 51215 b
(b) The Board shall, by rule, establish goals for the
award of contracts by each owners licensee to businesses owned
by minorities, women, veterans, and persons with disabilities,
expressed as percentages of an owners licensee's total dollar
amount of contracts awarded during each calendar year. Each
owners licensee must make every effort to meet the goals
established by the Board pursuant to this Section. When
setting the goals for the award of contracts, the Board shall
not include contracts where: (1) any purchasing mandates would
be dependent upon the availability of minority-owned
businesses, women-owned businesses, veteran-owned businesses,
and businesses owned by persons with disabilities ready,
willing, and able with capacity to provide quality goods and
services to a gaming operation at reasonable prices; (2) there
are no or a limited number of licensed suppliers as defined by
this Act for the goods or services provided to the licensee;
(3) the licensee or its parent company owns a company that
provides the goods or services; or (4) the goods or services
are provided to the licensee by a publicly traded company.
(c) Each owners licensee shall file with the Board an
annual report of its utilization of minority-owned businesses,
women-owned businesses, veteran-owned businesses, and
businesses owned by persons with disabilities during the
preceding calendar year. The reports shall include a
self-evaluation of the efforts of the owners licensee to meet
its goals under this Section.

SB0238 - 677 - LRB103 24882 DTM 51215 b
(c-5) The Board shall, by rule, establish goals for the
award of contracts by each owners licensee to businesses owned
by veterans of service in the armed forces of the United
States, expressed as percentages of an owners licensee's total
dollar amount of contracts awarded during each calendar year.
When setting the goals for the award of contracts, the Board
shall not include contracts where: (1) any purchasing mandates
would be dependent upon the availability of veteran-owned
businesses ready, willing, and able with capacity to provide
quality goods and services to a gaming operation at reasonable
prices; (2) there are no or a limited number of licensed
suppliers as defined in this Act for the goods or services
provided to the licensee; (3) the licensee or its parent
company owns a company that provides the goods or services; or
(4) the goods or services are provided to the licensee by a
publicly traded company.
Each owners licensee shall file with the Board an annual
report of its utilization of veteran-owned businesses during
the preceding calendar year. The reports shall include a
self-evaluation of the efforts of the owners licensee to meet
its goals under this Section.
(d) The owners licensee shall have the right to request a
waiver from the requirements of this Section. The Board shall
grant the waiver where the owners licensee demonstrates that
there has been made a good faith effort to comply with the
goals for participation by minority-owned businesses,

SB0238 - 678 - LRB103 24882 DTM 51215 b
women-owned businesses, businesses owned by persons with
disabilities, and veteran-owned businesses.
(e) If the Board determines that its goals and policies
are not being met by any owners licensee, then the Board may:
(1) adopt remedies for such violations; and
(2) recommend that the owners licensee provide
additional opportunities for participation by
minority-owned businesses, women-owned businesses,
businesses owned by persons with disabilities, and
veteran-owned businesses; such recommendations may
include, but shall not be limited to:
(A) assurances of stronger and better focused
solicitation efforts to obtain more minority-owned
businesses, women-owned businesses, businesses owned
by persons with disabilities, and veteran-owned
businesses as potential sources of supply;
(B) division of job or project requirements, when
economically feasible, into tasks or quantities to
permit participation of minority-owned businesses,
women-owned businesses, businesses owned by persons
with disabilities, and veteran-owned businesses;
(C) elimination of extended experience or
capitalization requirements, when programmatically
feasible, to permit participation of minority-owned
businesses, women-owned businesses, businesses owned
by persons with disabilities, and veteran-owned

SB0238 - 679 - LRB103 24882 DTM 51215 b
businesses;
(D) identification of specific proposed contracts
as particularly attractive or appropriate for
participation by minority-owned businesses,
women-owned businesses, businesses owned by persons
with disabilities, and veteran-owned businesses, such
identification to result from and be coupled with the
efforts of items (A) through (C); and
(E) implementation of regulations established for
the use of the sheltered market process.
(f) The Board shall file, no later than March 1 of each
year, an annual report that shall detail the level of
achievement toward the goals specified in this Section over
the 3 most recent fiscal years. The annual report shall
include, but need not be limited to:
(1) a summary detailing expenditures subject to the
goals, the actual goals specified, and the goals attained
by each owners licensee; and
(2) an analysis of the level of overall goal
achievement concerning purchases from minority-owned
businesses, women-owned businesses, businesses owned by
persons with disabilities, and veteran-owned businesses.
(Source: P.A. 99-78, eff. 7-20-15; 100-391, eff. 8-25-17;
100-1152, eff. 12-14-18.)
(230 ILCS 10/7.14)

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Sec. 7.14. Chicago Casino Advisory Committee. An Advisory
Committee is established to monitor, review, and report on (1)
the utilization of minority-owned business enterprises and
women-owned business enterprises by the owners licensee, (2)
employment of women, and (3) employment of minorities with
regard to the development and construction of the casino as
authorized under paragraph (1) of subsection (e-5) of Section
7 of the Illinois Gambling Act. The owners licensee under
paragraph (1) of subsection (e-5) of Section 7 of the Illinois
Gambling Act shall work with the Advisory Committee in
accumulating necessary information for the Advisory Committee
to submit reports, as necessary, to the General Assembly and
to the City of Chicago.
The Advisory Committee shall consist of 9 members as
provided in this Section. Five members shall be selected by
the Governor and 4 members shall be selected by the Mayor of
the City of Chicago. The Governor and the Mayor of the City of
Chicago shall each appoint at least one current member of the
General Assembly. The Advisory Committee shall meet
periodically and shall report the information to the Mayor of
the City of Chicago and to the General Assembly by December
31st of every year.
The Advisory Committee shall be dissolved on the date that
casino gambling operations are first conducted at a permanent
facility under the license authorized under paragraph (1) of
subsection (e-5) Section 7 of the Illinois Gambling Act. For

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the purposes of this Section, the terms "woman" and "minority
person" have the meanings provided in Section 2 of the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 10/11.2)
Sec. 11.2. Relocation of riverboat home dock.
(a) A licensee that was not conducting riverboat gambling
on January 1, 1998 may apply to the Board for renewal and
approval of relocation to a new home dock location authorized
under Section 3(c) and the Board shall grant the application
and approval upon receipt by the licensee of approval from the
new municipality or county, as the case may be, in which the
licensee wishes to relocate pursuant to Section 7(j).
(b) Any licensee that relocates its home dock pursuant to
this Section shall attain a level of at least 20% minority
person and woman ownership, at least 16% and 4% respectively,
within a time period prescribed by the Board, but not to exceed
12 months from the date the licensee begins conducting
gambling at the new home dock location. The 12-month period
shall be extended by the amount of time necessary to conduct a
background investigation pursuant to Section 6. For the
purposes of this Section, the terms "woman" and "minority
person" have the meanings provided in Section 2 of the
Business Enterprise for Minorities, Women, Veterans, and

SB0238 - 682 - LRB103 24882 DTM 51215 b
Persons with Disabilities Act.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 186. The Sports Wagering Act is amended by
changing Sections 25-30, 25-35, 25-40, and 25-45 as follows:
(230 ILCS 45/25-30)
Sec. 25-30. Master sports wagering license issued to an
organization licensee.
(a) An organization licensee may apply to the Board for a
master sports wagering license. To the extent permitted by
federal and State law, the Board shall actively seek to
achieve racial, ethnic, and geographic diversity when issuing
master sports wagering licenses to organization licensees and
encourage minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure. Additionally, the report
published under subsection (m) of Section 25-45 shall impact
the issuance of the master sports wagering license to the
extent permitted by federal and State law.
For the purposes of this subsection (a), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, Veterans, and Persons with Disabilities Act.
(b) Except as otherwise provided in this subsection (b),

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the initial license fee for a master sports wagering license
for an organization licensee is 5% of its handle from the
preceding calendar year or the lowest amount that is required
to be paid as an initial license fee by an owners licensee
under subsection (b) of Section 25-35, whichever is greater.
No initial license fee shall exceed $10,000,000. An
organization licensee licensed on the effective date of this
Act shall pay the initial master sports wagering license fee
by July 1, 2021. For an organization licensee licensed after
the effective date of this Act, the master sports wagering
license fee shall be $5,000,000, but the amount shall be
adjusted 12 months after the organization licensee begins
racing operations based on 5% of its handle from the first 12
months of racing operations. The master sports wagering
license is valid for 4 years.
(c) The organization licensee may renew the master sports
wagering license for a period of 4 years by paying a $1,000,000
renewal fee to the Board.
(d) An organization licensee issued a master sports
wagering license may conduct sports wagering:
(1) at its facility at which inter-track wagering is
conducted pursuant to an inter-track wagering license
under the Illinois Horse Racing Act of 1975;
(2) at 3 inter-track wagering locations if the
inter-track wagering location licensee from which it
derives its license is an organization licensee that is

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issued a master sports wagering license; and
(3) over the Internet or through a mobile application.
(e) The sports wagering offered over the Internet or
through a mobile application shall only be offered under
either the same brand as the organization licensee is
operating under or a brand owned by a direct or indirect
holding company that owns at least an 80% interest in that
organization licensee on the effective date of this Act.
(f) Until issuance of the first license under Section
25-45 or March 5, 2022, whichever occurs first, an individual
must create a sports wagering account in person at a facility
under paragraph (1) or (2) of subsection (d) to participate in
sports wagering offered over the Internet or through a mobile
application.
(Source: P.A. 101-31, eff. 6-28-19; 101-648, eff. 6-30-20;
102-689, eff. 12-17-21.)
(230 ILCS 45/25-35)
Sec. 25-35. Master sports wagering license issued to an
owners licensee.
(a) An owners licensee may apply to the Board for a master
sports wagering license. To the extent permitted by federal
and State law, the Board shall actively seek to achieve
racial, ethnic, and geographic diversity when issuing master
sports wagering licenses to owners licensees and encourage
minority-owned businesses, women-owned businesses,

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veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure. Additionally, the report
published under subsection (m) of Section 25-45 shall impact
the issuance of the master sports wagering license to the
extent permitted by federal and State law.
For the purposes of this subsection (a), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, Veterans, and Persons with Disabilities Act.
(b) Except as otherwise provided in subsection (b-5), the
initial license fee for a master sports wagering license for
an owners licensee is 5% of its adjusted gross receipts from
the preceding calendar year. No initial license fee shall
exceed $10,000,000. An owners licensee licensed on the
effective date of this Act shall pay the initial master sports
wagering license fee by July 1, 2021. The master sports
wagering license is valid for 4 years.
(b-5) For an owners licensee licensed after the effective
date of this Act, the master sports wagering license fee shall
be $5,000,000, but the amount shall be adjusted 12 months
after the owners licensee begins gambling operations under the
Illinois Gambling Act based on 5% of its adjusted gross
receipts from the first 12 months of gambling operations. The
master sports wagering license is valid for 4 years.
(c) The owners licensee may renew the master sports

SB0238 - 686 - LRB103 24882 DTM 51215 b
wagering license for a period of 4 years by paying a $1,000,000
renewal fee to the Board.
(d) An owners licensee issued a master sports wagering
license may conduct sports wagering:
(1) at its facility in this State that is authorized
to conduct gambling operations under the Illinois Gambling
Act; and
(2) over the Internet or through a mobile application.
(e) The sports wagering offered over the Internet or
through a mobile application shall only be offered under
either the same brand as the owners licensee is operating
under or a brand owned by a direct or indirect holding company
that owns at least an 80% interest in that owners licensee on
the effective date of this Act.
(f) Until issuance of the first license under Section
25-45 or March 5, 2022, whichever occurs first, an individual
must create a sports wagering account in person at a facility
under paragraph (1) of subsection (d) to participate in sports
wagering offered over the Internet or through a mobile
application.
(Source: P.A. 101-31, eff. 6-28-19; 101-648, eff. 6-30-20;
102-689, eff. 12-17-21.)
(230 ILCS 45/25-40)
Sec. 25-40. Master sports wagering license issued to a
sports facility.

SB0238 - 687 - LRB103 24882 DTM 51215 b
(a) As used in this Section, "designee" means a master
sports wagering licensee under Section 25-30, 25-35, or 25-45
or a management services provider licensee.
(b) A sports facility or a designee contracted to operate
sports wagering at or within a 5-block radius of the sports
facility may apply to the Board for a master sports wagering
license. To the extent permitted by federal and State law, the
Board shall actively seek to achieve racial, ethnic, and
geographic diversity when issuing master sports wagering
licenses to sports facilities or their designees and encourage
minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure. Additionally, the report
published under subsection (m) of Section 25-45 shall impact
the issuance of the master sports wagering license to the
extent permitted by federal and State law.
For the purposes of this subsection (b), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, Veterans, and Persons with Disabilities Act.
(c) The Board may issue up to 7 master sports wagering
licenses to sports facilities or their designees that meet the
requirements for licensure as determined by rule by the Board.
If more than 7 qualified applicants apply for a master sports
wagering license under this Section, the licenses shall be

SB0238 - 688 - LRB103 24882 DTM 51215 b
granted in the order in which the applications were received.
If a license is denied, revoked, or not renewed, the Board may
begin a new application process and issue a license under this
Section in the order in which the application was received.
(d) The initial license fee for a master sports wagering
license for a sports facility is $10,000,000. The master
sports wagering license is valid for 4 years.
(e) The sports facility or its designee may renew the
master sports wagering license for a period of 4 years by
paying a $1,000,000 renewal fee to the Board.
(f) A sports facility or its designee issued a master
sports wagering license may conduct sports wagering at or
within a 5-block radius of the sports facility.
(g) A sports facility or its designee issued a master
sports wagering license may conduct sports wagering over the
Internet within the sports facility or within a 5-block radius
of the sports facility.
(h) The sports wagering offered by a sports facility or
its designee over the Internet or through a mobile application
shall be offered under the same brand as the sports facility is
operating under, the brand the designee is operating under, or
a combination thereof.
(i) Until issuance of the first license under Section
25-45 or March 5, 2022, whichever occurs first, an individual
must register in person at a sports facility or the designee's
facility to participate in sports wagering offered over the

SB0238 - 689 - LRB103 24882 DTM 51215 b
Internet or through a mobile application.
(Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)
(230 ILCS 45/25-45)
Sec. 25-45. Master sports wagering license issued to an
online sports wagering operator.
(a) The Board shall issue 3 master sports wagering
licenses to online sports wagering operators for a
nonrefundable license fee of $20,000,000 pursuant to an open
and competitive selection process. The master sports wagering
license issued under this Section may be renewed every 4 years
upon payment of a $1,000,000 renewal fee. To the extent
permitted by federal and State law, the Board shall actively
seek to achieve racial, ethnic, and geographic diversity when
issuing master sports wagering licenses under this Section and
encourage minority-owned businesses, women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
disabilities to apply for licensure.
For the purposes of this subsection (a), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, Veterans, and Persons with Disabilities Act.
(b) Applications for the initial competitive selection
occurring after the effective date of this Act shall be
received by the Board within 540 days after the first license

SB0238 - 690 - LRB103 24882 DTM 51215 b
is issued under this Act to qualify. The Board shall announce
the winning bidders for the initial competitive selection
within 630 days after the first license is issued under this
Act, and this time frame may be extended at the discretion of
the Board.
(c) The Board shall provide public notice of its intent to
solicit applications for master sports wagering licenses under
this Section by posting the notice, application instructions,
and materials on its website for at least 30 calendar days
before the applications are due. Failure by an applicant to
submit all required information may result in the application
being disqualified. The Board may notify an applicant that its
application is incomplete and provide an opportunity to cure
by rule. Application instructions shall include a brief
overview of the selection process and how applications are
scored.
(d) To be eligible for a master sports wagering license
under this Section, an applicant must: (1) be at least 21 years
of age; (2) not have been convicted of a felony offense or a
violation of Article 28 of the Criminal Code of 1961 or the
Criminal Code of 2012 or a similar statute of any other
jurisdiction; (3) not have been convicted of a crime involving
dishonesty or moral turpitude; (4) have demonstrated a level
of skill or knowledge that the Board determines to be
necessary in order to operate sports wagering; and (5) have
met standards for the holding of a license as adopted by rules

SB0238 - 691 - LRB103 24882 DTM 51215 b
of the Board.
The Board may adopt rules to establish additional
qualifications and requirements to preserve the integrity and
security of sports wagering in this State and to promote and
maintain a competitive sports wagering market. After the close
of the application period, the Board shall determine whether
the applications meet the mandatory minimum qualification
criteria and conduct a comprehensive, fair, and impartial
evaluation of all qualified applications.
(e) The Board shall open all qualified applications in a
public forum and disclose the applicants' names. The Board
shall summarize the terms of the proposals and make the
summaries available to the public on its website.
(f) Not more than 90 days after the publication of the
qualified applications, the Board shall identify the winning
bidders. In granting the licenses, the Board may give
favorable consideration to qualified applicants presenting
plans that provide for economic development and community
engagement. To the extent permitted by federal and State law,
the Board may give favorable consideration to qualified
applicants demonstrating commitment to diversity in the
workplace.
(g) Upon selection of the winning bidders, the Board shall
have a reasonable period of time to ensure compliance with all
applicable statutory and regulatory criteria before issuing
the licenses. If the Board determines a winning bidder does

SB0238 - 692 - LRB103 24882 DTM 51215 b
not satisfy all applicable statutory and regulatory criteria,
the Board shall select another bidder from the remaining
qualified applicants.
(h) Nothing in this Section is intended to confer a
property or other right, duty, privilege, or interest
entitling an applicant to an administrative hearing upon
denial of an application.
(i) Upon issuance of a master sports wagering license to a
winning bidder, the information and plans provided in the
application become a condition of the license. A master sports
wagering licensee under this Section has a duty to disclose
any material changes to the application. Failure to comply
with the conditions or requirements in the application may
subject the master sports wagering licensee under this Section
to discipline, including, but not limited to, fines,
suspension, and revocation of its license, pursuant to rules
adopted by the Board.
(j) The Board shall disseminate information about the
licensing process through media demonstrated to reach large
numbers of business owners and entrepreneurs who are
minorities, women, veterans, and persons with disabilities.
(k) The Department of Commerce and Economic Opportunity,
in conjunction with the Board, shall conduct ongoing,
thorough, and comprehensive outreach to businesses owned by
minorities, women, veterans, and persons with disabilities
about contracting and entrepreneurial opportunities in sports

SB0238 - 693 - LRB103 24882 DTM 51215 b
wagering. This outreach shall include, but not be limited to:
(1) cooperating and collaborating with other State
boards, commissions, and agencies; public and private
universities and community colleges; and local governments
to target outreach efforts; and
(2) working with organizations serving minorities,
women, and persons with disabilities to establish and
conduct training for employment in sports wagering.
(l) The Board shall partner with the Department of Labor,
the Department of Financial and Professional Regulation, and
the Department of Commerce and Economic Opportunity to
identify employment opportunities within the sports wagering
industry for job seekers and dislocated workers.
(m) By March 1, 2020, the Board shall prepare a request for
proposals to conduct a study of the online sports wagering
industry and market to determine whether there is a compelling
interest in implementing remedial measures, including the
application of the Business Enterprise Program under the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act or a similar program to assist
minorities, women, and persons with disabilities in the sports
wagering industry.
As a part of the study, the Board shall evaluate race and
gender-neutral programs or other methods that may be used to
address the needs of minority and women applicants and
minority-owned and women-owned businesses seeking to

SB0238 - 694 - LRB103 24882 DTM 51215 b
participate in the sports wagering industry. The Board shall
submit to the General Assembly and publish on its website the
results of this study by August 1, 2020.
If, as a result of the study conducted under this
subsection (m), the Board finds that there is a compelling
interest in implementing remedial measures, the Board may
adopt rules, including emergency rules, to implement remedial
measures, if necessary and to the extent permitted by State
and federal law, based on the findings of the study conducted
under this subsection (m).
(Source: P.A. 101-31, eff. 6-28-19.)
Section 187. The Illinois Public Aid Code is amended by
changing Section 5-30.17 as follows:
(305 ILCS 5/5-30.17)
Sec. 5-30.17. Medicaid Managed Care Oversight Commission.
(a) The Medicaid Managed Care Oversight Commission is
created within the Department of Healthcare and Family
Services to evaluate the effectiveness of Illinois' managed
care program.
(b) The Commission shall consist of the following members:
(1) One member of the Senate, appointed by the Senate
President, who shall serve as co-chair.
(2) One member of the House of Representatives,
appointed by the Speaker of the House of Representatives,

SB0238 - 695 - LRB103 24882 DTM 51215 b
who shall serve as co-chair.
(3) One member of the House of Representatives,
appointed by the Minority Leader of the House of
Representatives.
(4) One member of the Senate, appointed by the Senate
Minority Leader.
(5) One member representing the Department of
Healthcare and Family Services, appointed by the Governor.
(6) One member representing the Department of Public
Health, appointed by the Governor.
(7) One member representing the Department of Human
Services, appointed by the Governor.
(8) One member representing the Department of Children
and Family Services, appointed by the Governor.
(9) One member of a statewide association representing
Medicaid managed care plans, appointed by the Governor.
(10) One member of a statewide association
representing a majority of hospitals, appointed by the
Governor.
(11) Two academic experts on Medicaid managed care
programs, appointed by the Governor.
(12) One member of a statewide association
representing primary care providers, appointed by the
Governor.
(13) One member of a statewide association
representing behavioral health providers, appointed by the

SB0238 - 696 - LRB103 24882 DTM 51215 b
Governor.
(14) Members representing Federally Qualified Health
Centers, a long-term care association, a dental
association, pharmacies, pharmacists, a developmental
disability association, a Medicaid consumer advocate, a
Medicaid consumer, an association representing physicians,
a behavioral health association, and an association
representing pediatricians, appointed by the Governor.
(15) A member of a statewide association representing
only safety-net hospitals, appointed by the Governor.
(c) The Director of Healthcare and Family Services and
chief of staff, or their designees, shall serve as the
Commission's executive administrators in providing
administrative support, research support, and other
administrative tasks requested by the Commission's co-chairs.
Any expenses, including, but not limited to, travel and
housing, shall be paid for by the Department's existing
budget.
(d) The members of the Commission shall receive no
compensation for their services as members of the Commission.
(e) The Commission shall meet quarterly beginning as soon
as is practicable after the effective date of this amendatory
Act of the 102nd General Assembly.
(f) The Commission shall:
(1) review data on health outcomes of Medicaid managed
care members;

SB0238 - 697 - LRB103 24882 DTM 51215 b
(2) review current care coordination and case
management efforts and make recommendations on expanding
care coordination to additional populations with a focus
on the social determinants of health;
(3) review and assess the appropriateness of metrics
used in the Pay-for-Performance programs;
(4) review the Department's prior authorization and
utilization management requirements and recommend
adaptations for the Medicaid population;
(5) review managed care performance in meeting
diversity contracting goals and the use of funds dedicated
to meeting such goals, including, but not limited to,
contracting requirements set forth in the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act; recommend strategies to increase
compliance with diversity contracting goals in
collaboration with the Chief Procurement Officer for
General Services and the Business Enterprise Council for
Minorities, Women, Veterans, and Persons with
Disabilities; and recoup any misappropriated funds for
diversity contracting;
(6) review data on the effectiveness of processing to
medical providers;
(7) review member access to health care services in
the Medicaid Program, including specialty care services;
(8) review value-based and other alternative payment

SB0238 - 698 - LRB103 24882 DTM 51215 b
methodologies to make recommendations to enhance program
efficiency and improve health outcomes;
(9) review the compliance of all managed care entities
in State contracts and recommend reasonable financial
penalties for any noncompliance;
(10) produce an annual report detailing the
Commission's findings based upon its review of research
conducted under this Section, including specific
recommendations, if any, and any other information the
Commission may deem proper in furtherance of its duties
under this Section;
(11) review provider availability and make
recommendations to increase providers where needed,
including reviewing the regulatory environment and making
recommendations for reforms;
(12) review capacity for culturally competent
services, including translation services among providers;
and
(13) review and recommend changes to the safety-net
hospital definition to create different classifications of
safety-net hospitals.
(f-5) The Department shall make available upon request the
analytics of Medicaid managed care clearinghouse data
regarding processing.
(g) Beginning January 1, 2022, and for each year
thereafter, the Commission shall submit a report of its

SB0238 - 699 - LRB103 24882 DTM 51215 b
findings and recommendations to the General Assembly. The
report to the General Assembly shall be filed with the Clerk of
the House of Representatives and the Secretary of the Senate
in electronic form only, in the manner that the Clerk and the
Secretary shall direct.
(Source: P.A. 102-4, eff. 4-27-21.)
Section 188. The Bias-Free Child Removal Pilot Program Act
is amended by changing Section 15 as follows:
(325 ILCS 7/15)
(Section scheduled to be repealed on January 1, 2027)
Sec. 15. Definitions. As used in this Act:
"Bias-free" means to review a case file without the
following identifying demographic information on the parent
and child: gender, race, ethnicity, geographic location, and
socioeconomic status, which prevents a reader from inserting
bias, implicit or explicit, into critical decisions such as
removing a child from the child's family.
"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, Veterans, and Persons with Disabilities
Act.
"Child" means any person under 18 years of age.
"Child welfare court personnel" means lawyers, judges,

SB0238 - 700 - LRB103 24882 DTM 51215 b
public defenders, and guardians ad litem.
"Department" means the Department of Children and Family
Services.
"Evaluation design" means identifying an overall strategy
for analyzing the effectiveness of a program to include
outlining a distinct approach to formulating key outputs and
outcomes, selecting an appropriate research method, and
evaluating the outcomes of a program.
"Immediate and urgent necessity", in accordance with
Section 5 of the Abused and Neglected Child reporting Act,
means (i) that there is a reason to believe that the child
cannot be cared for at home or in the custody of the person
responsible for the child's welfare without endangering the
child's health or safety and (ii) that there is no time to
apply for a court order under the Juvenile Court Act of 1987
for temporary custody of the child.
"Lived experience" means a representation of the
experiences of a person involved in the child welfare system,
the knowledge and understanding that the person gains from
these experiences, and the ability to understand the policies
or guidelines of the Department.
"Program" or "pilot program" means the Bias-Free Child
Removal Pilot Program.
"Review Team" means the Bias-Free Case Review Team.
(Source: P.A. 102-1087, eff. 6-10-22.)

SB0238 - 701 - LRB103 24882 DTM 51215 b
Section 190. The Quincy Veterans' Home Rehabilitation and
Rebuilding Act is amended by changing Sections 5, 15, 30, and
46 as follows:
(330 ILCS 21/5)
(Section scheduled to be repealed on July 17, 2023)
Sec. 5. Legislative policy. It is the intent of the
General Assembly that the Capital Development Board or the
Department of Veterans' Affairs be allowed to use the
design-build delivery method for public projects to renovate,
restore, rehabilitate, or rebuild the Quincy Veterans' Home,
if it is shown to be in the State's best interests for that
particular project. It shall be the policy of the Capital
Development Board and the Department of Veterans' Affairs in
the procurement of design-build services to publicly announce
all requirements for design-build services for the Quincy
Veterans' Home and to procure these services on the basis of
demonstrated competence and qualifications and with due regard
for the principles of competitive selection.
The Capital Development Board and the Department of
Veterans' Affairs shall, prior to issuing requests for
proposals, promulgate and publish procedures for the
solicitation and award of contracts pursuant to this Act.
The Capital Development Board and the Department of
Veterans' Affairs shall, for each public project or projects
permitted under this Act, make a written determination,

SB0238 - 702 - LRB103 24882 DTM 51215 b
including a description as to the particular advantages of the
design-build procurement method, that it is in the best
interests of this State to enter into a design-build contract
for the project or projects. In making that determination, the
following factors shall be considered:
(1) The probability that the design-build procurement
method will be in the best interests of the State by
providing a material savings of time or cost over the
design-bid-build or other delivery system.
(2) The type and size of the project and its
suitability to the design-build procurement method.
(3) The ability of the State construction agency to
define and provide comprehensive scope and performance
criteria for the project.
No State construction agency may use a design-build
procurement method unless the agency determines in writing
that the project will comply with the disadvantaged business
and equal employment practices of the State as established in
the Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act and Section 2-105 of the
Illinois Human Rights Act.
The Capital Development Board or the Department of
Veterans' Affairs shall, within 15 days after the initial
determination, provide an advisory copy to the Procurement
Policy Board and maintain the full record of determination for
5 years.

SB0238 - 703 - LRB103 24882 DTM 51215 b
(Source: P.A. 100-610, eff. 7-17-18.)
(330 ILCS 21/15)
(Section scheduled to be repealed on July 17, 2023)
Sec. 15. Solicitation of proposals.
(a) When the State construction agency elects to use the
design-build delivery method, it must issue a notice of intent
to receive requests for proposals for the project at least 14
days before issuing the request for proposal. The State
construction agency must publish the advance notice in the
official procurement bulletin of the State or the professional
services bulletin of the State construction agency, if any.
The agency is encouraged to use publication of the notice in
related construction industry service publications. A brief
description of the proposed procurement must be included in
the notice. The State construction agency must provide a copy
of the request for proposal to any party requesting a copy.
(b) The request for proposal shall be prepared for each
project and must contain, without limitation, the following
information:
(1) The name of the State construction agency.
(2) A preliminary schedule for the completion of the
contract.
(3) The proposed budget for the project, the source of
funds, and the currently available funds at the time the
request for proposal is submitted.

SB0238 - 704 - LRB103 24882 DTM 51215 b
(4) Prequalification criteria for design-build
entities wishing to submit proposals. The State
construction agency shall include, at a minimum, its
normal prequalification, licensing, registration, and
other requirements, but nothing contained herein precludes
the use of additional prequalification criteria by the
State construction agency.
(5) Material requirements of the contract, including,
but not limited to, the proposed terms and conditions,
required performance and payment bonds, insurance, and the
entity's plan to comply with the utilization goals for
business enterprises established in the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act, and with Section 2-105 of the
Illinois Human Rights Act.
(6) The performance criteria.
(7) The evaluation criteria for each phase of the
solicitation.
(8) The number of entities that will be considered for
the technical and cost evaluation phase.
(c) The State construction agency may include any other
relevant information that it chooses to supply. The
design-build entity shall be entitled to rely upon the
accuracy of this documentation in the development of its
proposal.
(d) The date that proposals are due must be at least 21

SB0238 - 705 - LRB103 24882 DTM 51215 b
calendar days after the date of the issuance of the request for
proposal. In the event the cost of the project is estimated to
exceed $10,000,000, then the proposal due date must be at
least 28 calendar days after the date of the issuance of the
request for proposal. The State construction agency shall
include in the request for proposal a minimum of 30 days to
develop the Phase II submissions after the selection of
entities from the Phase I evaluation is completed.
(Source: P.A. 100-610, eff. 7-17-18.)
(330 ILCS 21/30)
(Section scheduled to be repealed on July 17, 2023)
Sec. 30. Procedures for selection.
(a) The State construction agency must use a two-phase
procedure for the selection of the successful design-build
entity. Phase I of the procedure will evaluate and shortlist
the design-build entities based on qualifications, and Phase
II will evaluate the technical and cost proposals.
(b) The State construction agency shall include in the
request for proposal the evaluating factors to be used in
Phase I. These factors are in addition to any prequalification
requirements of design-build entities that the agency has set
forth. Each request for proposal shall establish the relative
importance assigned to each evaluation factor and subfactor,
including any weighting of criteria to be employed by the
State construction agency. The State construction agency must

SB0238 - 706 - LRB103 24882 DTM 51215 b
maintain a record of the evaluation scoring to be disclosed in
the event of a protest regarding the solicitation.
The State construction agency shall include the following
criteria in every Phase I evaluation of design-build entities:
(1) experience of personnel; (2) successful experience with
similar project types; (3) financial capability; (4)
timeliness of past performance; (5) experience with similarly
sized projects; (6) successful reference checks of the firm;
(7) commitment to assign personnel for the duration of the
project and qualifications of the entity's consultants; and
(8) ability or past performance in meeting or exhausting good
faith efforts to meet the utilization goals for business
enterprises established in the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities Act
and with Section 2-105 of the Illinois Human Rights Act. The
State construction agency may include any additional relevant
criteria in Phase I that it deems necessary for a proper
qualification review.
The State construction agency may not consider any
design-build entity for evaluation or award if the entity has
any pecuniary interest in the project or has other
relationships or circumstances, including, but not limited to,
long-term leasehold, mutual performance, or development
contracts with the State construction agency, that may give
the design-build entity a financial or tangible advantage over
other design-build entities in the preparation, evaluation, or

SB0238 - 707 - LRB103 24882 DTM 51215 b
performance of the design-build contract or that create the
appearance of impropriety. No proposal shall be considered
that does not include an entity's plan to comply with the
requirements established in the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act, for both the design and construction areas of
performance, and with Section 2-105 of the Illinois Human
Rights Act.
Upon completion of the qualifications evaluation, the
State construction agency shall create a shortlist of the most
highly qualified design-build entities. The State construction
agency, in its discretion, is not required to shortlist the
maximum number of entities as identified for Phase II
evaluation, so long as no less than 2 design-build entities
nor more than 6 design-build entities are selected to submit
Phase II proposals.
The State construction agency shall notify the entities
selected for the shortlist in writing. This notification shall
commence the period for the preparation of the Phase II
technical and cost evaluations. The State construction agency
must allow sufficient time for the shortlist entities to
prepare their Phase II submittals considering the scope and
detail requested by the State agency.
(c) The State construction agency shall include in the
request for proposal the evaluating factors to be used in the
technical and cost submission components of Phase II. Each

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request for proposal shall establish, for both the technical
and cost submission components of Phase II, the relative
importance assigned to each evaluation factor and subfactor,
including any weighting of criteria to be employed by the
State construction agency. The State construction agency must
maintain a record of the evaluation scoring to be disclosed in
the event of a protest regarding the solicitation.
The State construction agency shall include the following
criteria in every Phase II technical evaluation of
design-build entities: (1) compliance with objectives of the
project; (2) compliance of proposed services to the request
for proposal requirements; (3) quality of products or
materials proposed; (4) quality of design parameters; (5)
design concepts; (6) innovation in meeting the scope and
performance criteria; and (7) constructability of the proposed
project. The State construction agency may include any
additional relevant technical evaluation factors it deems
necessary for proper selection.
The State construction agency shall include the following
criteria in every Phase II cost evaluation: the total project
cost, the construction costs, and the time of completion. The
State construction agency may include any additional relevant
technical evaluation factors it deems necessary for proper
selection. The total project cost criteria weighting factor
shall be 25%.
The State construction agency shall directly employ or

SB0238 - 709 - LRB103 24882 DTM 51215 b
retain a licensed design professional to evaluate the
technical and cost submissions to determine if the technical
submissions are in accordance with generally accepted industry
standards.
Upon completion of the technical submissions and cost
submissions evaluation, the State construction agency may
award the design-build contract to the highest overall ranked
entity.
(Source: P.A. 100-610, eff. 7-17-18; 101-81, eff. 7-12-19.)
(330 ILCS 21/46)
(Section scheduled to be repealed on July 17, 2023)
Sec. 46. Reports and evaluation. At the end of every
6-month period following the contract award, and again prior
to final contract payout and closure, a selected design-build
entity shall detail, in a written report submitted to the
State agency, its efforts and success in implementing the
entity's plan to comply with the utilization goals for
business enterprises established in the Business Enterprise
for Minorities, Women, Veterans, and Persons with Disabilities
Act and Section 2-105 of the Illinois Human Rights Act. If the
entity's performance in implementing the plan falls short of
the performance measures and outcomes set forth in the plans
submitted by the entity during the proposal process, the
entity shall, in a detailed written report, inform the General
Assembly and the Governor whether and to what degree each

SB0238 - 710 - LRB103 24882 DTM 51215 b
design-build contract authorized under this Act promoted the
utilization goals for business enterprises established in the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act and Section 2-105 of the
Illinois Human Rights Act.
(Source: P.A. 100-610, eff. 7-17-18.)
Section 191. The Cannabis Regulation and Tax Act is
amended by changing Section 55-80 as follows:
(410 ILCS 705/55-80)
Sec. 55-80. Annual reports.
(a) The Department of Financial and Professional
Regulation shall submit to the General Assembly and Governor a
report, by September 30 of each year, that does not disclose
any information identifying information about cultivation
centers, craft growers, infuser organizations, transporting
organizations, or dispensing organizations, but does contain,
at a minimum, all of the following information for the
previous fiscal year:
(1) The number of licenses issued to dispensing
organizations by county, or, in counties with greater than
3,000,000 residents, by zip code;
(2) The total number of dispensing organization owners
that are Social Equity Applicants or minority persons,
women, or persons with disabilities as those terms are

SB0238 - 711 - LRB103 24882 DTM 51215 b
defined in the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act;
(3) The total number of revenues received from
dispensing organizations, segregated from revenues
received from dispensing organizations under the
Compassionate Use of Medical Cannabis Program Act by
county, separated by source of revenue;
(4) The total amount of revenue received from
dispensing organizations that share a premises or majority
ownership with a craft grower;
(5) The total amount of revenue received from
dispensing organizations that share a premises or majority
ownership with an infuser; and
(6) An analysis of revenue generated from taxation,
licensing, and other fees for the State, including
recommendations to change the tax rate applied.
(b) The Department of Agriculture shall submit to the
General Assembly and Governor a report, by September 30 of
each year, that does not disclose any information identifying
information about cultivation centers, craft growers, infuser
organizations, transporting organizations, or dispensing
organizations, but does contain, at a minimum, all of the
following information for the previous fiscal year:
(1) The number of licenses issued to cultivation
centers, craft growers, infusers, and transporters by
license type, and, in counties with more than 3,000,000

SB0238 - 712 - LRB103 24882 DTM 51215 b
residents, by zip code;
(2) The total number of cultivation centers, craft
growers, infusers, and transporters by license type that
are Social Equity Applicants or minority persons, women,
or persons with disabilities as those terms are defined in
the Business Enterprise for Minorities, Women, Veterans,
and Persons with Disabilities Act;
(3) The total amount of revenue received from
cultivation centers, craft growers, infusers, and
transporters, separated by license types and source of
revenue;
(4) The total amount of revenue received from craft
growers and infusers that share a premises or majority
ownership with a dispensing organization;
(5) The total amount of revenue received from craft
growers that share a premises or majority ownership with
an infuser, but do not share a premises or ownership with a
dispensary;
(6) The total amount of revenue received from infusers
that share a premises or majority ownership with a craft
grower, but do not share a premises or ownership with a
dispensary;
(7) The total amount of revenue received from craft
growers that share a premises or majority ownership with a
dispensing organization, but do not share a premises or
ownership with an infuser;

SB0238 - 713 - LRB103 24882 DTM 51215 b
(8) The total amount of revenue received from infusers
that share a premises or majority ownership with a
dispensing organization, but do not share a premises or
ownership with a craft grower;
(9) The total amount of revenue received from
transporters; and
(10) An analysis of revenue generated from taxation,
licensing, and other fees for the State, including
recommendations to change the tax rate applied.
(c) The Illinois State Police shall submit to the General
Assembly and Governor a report, by September 30 of each year
that contains, at a minimum, all of the following information
for the previous fiscal year:
(1) The effect of regulation and taxation of cannabis
on law enforcement resources;
(2) The impact of regulation and taxation of cannabis
on highway and waterway safety and rates of impaired
driving or operating, where impairment was determined
based on failure of a field sobriety test;
(3) The available and emerging methods for detecting
the metabolites for delta-9-tetrahydrocannabinol in bodily
fluids, including, without limitation, blood and saliva;
(4) The effectiveness of current DUI laws and
recommendations for improvements to policy to better
ensure safe highways and fair laws.
(d) The Adult Use Cannabis Health Advisory Committee shall

SB0238 - 714 - LRB103 24882 DTM 51215 b
submit to the General Assembly and Governor a report, by
September 30 of each year, that does not disclose any
identifying information about any individuals, but does
contain, at a minimum:
(1) Self-reported youth cannabis use, as published in
the most recent Illinois Youth Survey available;
(2) Self-reported adult cannabis use, as published in
the most recent Behavioral Risk Factor Surveillance Survey
available;
(3) Hospital room admissions and hospital utilization
rates caused by cannabis consumption, including the
presence or detection of other drugs;
(4) Overdoses of cannabis and poison control data,
including the presence of other drugs that may have
contributed;
(5) Incidents of impaired driving caused by the
consumption of cannabis or cannabis products, including
the presence of other drugs or alcohol that may have
contributed to the impaired driving;
(6) Prevalence of infants born testing positive for
cannabis or delta-9-tetrahydrocannabinol, including
demographic and racial information on which infants are
tested;
(7) Public perceptions of use and risk of harm;
(8) Revenue collected from cannabis taxation and how
that revenue was used;

SB0238 - 715 - LRB103 24882 DTM 51215 b
(9) Cannabis retail licenses granted and locations;
(10) Cannabis-related arrests; and
(11) The number of individuals completing required bud
tender training.
(e) Each agency or committee submitting reports under this
Section may consult with one another in the preparation of
each report.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-538, eff. 8-20-21.)
Section 195. The Environmental Protection Act is amended
by changing Sections 14.7 and 17.12 as follows:
(415 ILCS 5/14.7)
Sec. 14.7. Preservation of community water supplies.
(a) The Agency shall adopt rules governing certain
corrosion prevention projects carried out on community water
supplies. Those rules shall not apply to buried pipelines
including, but not limited to, pipes, mains, and joints. The
rules shall exclude routine maintenance activities of
community water supplies including, but not limited to, the
use of protective coatings applied by the owner's utility
personnel during the course of performing routine maintenance
activities. Routine maintenance activities shall include, but
not be limited to, the painting of fire hydrants; routine
over-coat painting of interior and exterior building surfaces

SB0238 - 716 - LRB103 24882 DTM 51215 b
such as floors, doors, windows, and ceilings; and routine
touch-up and over-coat application of protective coatings
typically found on water utility pumps, pipes, tanks, and
other water treatment plant appurtenances and utility owned
structures. Those rules shall include:
(1) standards for ensuring that community water
supplies carry out corrosion prevention and mitigation
methods according to corrosion prevention industry
standards adopted by the Agency;
(2) requirements that community water supplies use:
(A) protective coatings personnel to carry out
corrosion prevention and mitigation methods on exposed
water treatment tanks, exposed non-concrete water
treatment structures, exposed water treatment pipe
galleys; exposed pumps; and generators; the Agency
shall not limit to protective coatings personnel any
other work relating to prevention and mitigation
methods on any other water treatment appurtenances
where protective coatings are utilized for corrosion
control and prevention to prolong the life of the
water utility asset; and
(B) inspectors to ensure that best practices and
standards are adhered to on each corrosion prevention
project; and
(3) standards to prevent environmental degradation
that might occur as a result of carrying out corrosion

SB0238 - 717 - LRB103 24882 DTM 51215 b
prevention and mitigation methods including, but not
limited to, standards to prevent the improper handling and
containment of hazardous materials, especially lead paint,
removed from the exterior of a community water supply.
In adopting rules under this subsection (a), the Agency
shall obtain input from corrosion industry experts
specializing in the training of personnel to carry out
corrosion prevention and mitigation methods.
(b) As used in this Section:
"Community water supply" has the meaning ascribed to that
term in Section 3.145 of this Act.
"Corrosion" means a naturally occurring phenomenon
commonly defined as the deterioration of a metal that results
from a chemical or electrochemical reaction with its
environment.
"Corrosion prevention and mitigation methods" means the
preparation, application, installation, removal, or general
maintenance as necessary of a protective coating system,
including any or more of the following:
(A) surface preparation and coating application on
the exterior or interior of a community water supply;
or
(B) shop painting of structural steel fabricated
for installation as part of a community water supply.
"Corrosion prevention project" means carrying out
corrosion prevention and mitigation methods. "Corrosion

SB0238 - 718 - LRB103 24882 DTM 51215 b
prevention project" does not include clean-up related to
surface preparation.
"Protective coatings personnel" means personnel employed
or retained by a contractor providing services covered by this
Section to carry out corrosion prevention or mitigation
methods or inspections.
(c) (Blank).
(d) Each contract procured pursuant to the Illinois
Procurement Code for the provision of services covered by this
Section (1) shall comply with applicable provisions of the
Illinois Procurement Code and (2) shall include provisions for
reporting participation by minority persons, women, and
veterans, as defined by Section 2 of the Business Enterprise
for Minorities, Women, Veterans, and Persons with Disabilities
Act; women, as defined by Section 2 of the Business Enterprise
for Minorities, Women, and Persons with Disabilities Act; and
veterans, as defined by Section 45-57 of the Illinois
Procurement Code, in apprenticeship and training programs in
which the contractor or his or her subcontractors participate.
The requirements of this Section do not apply to an individual
licensed under the Professional Engineering Practice Act of
1989 or the Structural Engineering Act of 1989.
(Source: P.A. 100-391, eff. 8-25-17; 101-226, eff. 6-1-20.)
(415 ILCS 5/17.12)
Sec. 17.12. Lead service line replacement and

SB0238 - 719 - LRB103 24882 DTM 51215 b
notification.
(a) The purpose of this Act is to: (1) require the owners
and operators of community water supplies to develop,
implement, and maintain a comprehensive water service line
material inventory and a comprehensive lead service line
replacement plan, provide notice to occupants of potentially
affected buildings before any construction or repair work on
water mains or lead service lines, and request access to
potentially affected buildings before replacing lead service
lines; and (2) prohibit partial lead service line
replacements, except as authorized within this Section.
(b) The General Assembly finds and declares that:
(1) There is no safe level of exposure to heavy metal
lead, as found by the United States Environmental
Protection Agency and the Centers for Disease Control and
Prevention.
(2) Lead service lines can convey this harmful
substance to the drinking water supply.
(3) According to the Illinois Environmental Protection
Agency's 2018 Service Line Material Inventory, the State
of Illinois is estimated to have over 680,000 lead-based
service lines still in operation.
(4) The true number of lead service lines is not fully
known because Illinois lacks an adequate inventory of lead
service lines.
(5) For the general health, safety and welfare of its

SB0238 - 720 - LRB103 24882 DTM 51215 b
residents, all lead service lines in Illinois should be
disconnected from the drinking water supply, and the
State's drinking water supply.
(c) In this Section:
"Advisory Board" means the Lead Service Line Replacement
Advisory Board created under subsection (x).
"Community water supply" has the meaning ascribed to it in
Section 3.145 of this Act.
"Department" means the Department of Public Health.
"Emergency repair" means any unscheduled water main, water
service, or water valve repair or replacement that results
from failure or accident.
"Fund" means the Lead Service Line Replacement Fund
created under subsection (bb).
"Lead service line" means a service line made of lead or
service line connected to a lead pigtail, lead gooseneck, or
other lead fitting.
"Material inventory" means a water service line material
inventory developed by a community water supply under this
Act.
"Non-community water supply" has the meaning ascribed to
it in Section 3.145 of the Environmental Protection Act.
"NSF/ANSI Standard" means a water treatment standard
developed by NSF International.
"Partial lead service line replacement" means replacement
of only a portion of a lead service line.

SB0238 - 721 - LRB103 24882 DTM 51215 b
"Potentially affected building" means any building that is
provided water service through a service line that is either a
lead service line or a suspected lead service line.
"Public water supply" has the meaning ascribed to it in
Section 3.365 of this Act.
"Service line" means the piping, tubing, and necessary
appurtenances acting as a conduit from the water main or
source of potable water supply to the building plumbing at the
first shut-off valve or 18 inches inside the building,
whichever is shorter.
"Suspected lead service line" means a service line that a
community water supply finds more likely than not to be made of
lead after completing the requirements under paragraphs (2)
through (5) of subsection (h).
"Small system" means a community water supply that
regularly serves water to 3,300 or fewer persons.
(d) An owner or operator of a community water supply
shall:
(1) develop an initial material inventory by April 15,
2022 and electronically submit by April 15, 2023 an
updated material inventory electronically to the Agency;
and
(2) deliver a complete material inventory to the
Agency no later than April 15, 2024, or such time as
required by federal law, whichever is sooner. The complete
inventory shall report the composition of all service

SB0238 - 722 - LRB103 24882 DTM 51215 b
lines in the community water supply's distribution system.
(e) The Agency shall review and approve the final material
inventory submitted to it under subsection (d).
(f) If a community water supply does not submit a complete
inventory to the Agency by April 15, 2024 under paragraph (2)
of subsection (d), the community water supply may apply for an
extension to the Agency no less than 3 months prior to the due
date. The Agency shall develop criteria for granting material
inventory extensions. When considering requests for extension,
the Agency shall, at a minimum, consider:
(1) the number of service connections in a water
supply; and
(2) the number of service lines of an unknown material
composition.
(g) A material inventory prepared for a community water
supply under subsection (d) shall identify:
(1) the total number of service lines connected to the
community water supply's distribution system;
(2) the materials of construction of each service line
connected to the community water supply's distribution
system;
(3) the number of suspected lead service lines that
were newly identified in the material inventory for the
community water supply after the community water supply
last submitted a service line inventory to the Agency; and
(4) the number of suspected or known lead service

SB0238 - 723 - LRB103 24882 DTM 51215 b
lines that were replaced after the community water supply
last submitted a service line inventory to the Agency, and
the material of the service line that replaced each lead
service line.
When identifying the materials of construction under
paragraph (2) of this subsection, the owner or operator of the
community water supply shall to the best of the owner's or
operator's ability identify the type of construction material
used on the customer's side of the curb box, meter, or other
line of demarcation and the community water supply's side of
the curb box, meter, or other line of demarcation.
(h) In completing a material inventory under subsection
(d), the owner or operator of a community water supply shall:
(1) prioritize inspections of high-risk areas
identified by the community water supply and inspections
of high-risk facilities, such as preschools, day care
centers, day care homes, group day care homes, parks,
playgrounds, hospitals, and clinics, and confirm service
line materials in those areas and at those facilities;
(2) review historical documentation, such as
construction logs or cards, as-built drawings, purchase
orders, and subdivision plans, to determine service line
material construction;
(3) when conducting distribution system maintenance,
visually inspect service lines and document materials of
construction;

SB0238 - 724 - LRB103 24882 DTM 51215 b
(4) identify any time period when the service lines
being connected to its distribution system were primarily
lead service lines, if such a time period is known or
suspected; and
(5) discuss service line repair and installation with
its employees, contractors, plumbers, other workers who
worked on service lines connected to its distribution
system, or all of the above.
(i) The owner or operator of each community water supply
shall maintain records of persons who refuse to grant access
to the interior of a building for purposes of identifying the
materials of construction of a service line. If a community
water supply has been denied access on the property or to the
interior of a building for that reason, then the community
water supply shall attempt to identify the service line as a
suspected lead service line, unless documentation is provided
showing otherwise.
(j) If a community water supply identifies a lead service
line connected to a building, the owner or operator of the
community water supply shall attempt to notify the owner of
the building and all occupants of the building of the
existence of the lead service line within 15 days after
identifying the lead service line, or as soon as is reasonably
possible thereafter. Individual written notice shall be given
according to the provisions of subsection (jj).
(k) An owner or operator of a community water supply has no

SB0238 - 725 - LRB103 24882 DTM 51215 b
duty to include in the material inventory required under
subsection (d) information about service lines that are
physically disconnected from a water main in its distribution
system.
(l) The owner or operator of each community water supply
shall post on its website a copy of the most recently submitted
material inventory or alternatively may request that the
Agency post a copy of that material inventory on the Agency's
website.
(m) Nothing in this Section shall be construed to require
service lines to be unearthed for the sole purpose of
inventorying.
(n) When an owner or operator of a community water supply
awards a contract under this Section, the owner or operator
shall make a good faith effort to use contractors and vendors
owned by minority persons, women, veterans, and persons with a
disability, as those terms are defined in Section 2 of the
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act, for not less than 20% of the
total contracts, provided that:
(1) contracts representing at least 11% of the total
projects shall be awarded to minority-owned businesses, as
defined in Section 2 of the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act;
(2) contracts representing at least 7% of the total

SB0238 - 726 - LRB103 24882 DTM 51215 b
projects shall be awarded to women-owned businesses, as
defined in Section 2 of the Business Enterprise for
Minorities, Women, Veterans, and Persons with Disabilities
Act; and
(3) contracts representing at least 2% of the total
projects shall be awarded to businesses owned by persons
with a disability.
Owners or operators of a community water supply are
encouraged to divide projects, whenever economically feasible,
into contracts of smaller size that ensure small business
contractors or vendors shall have the ability to qualify in
the applicable bidding process, when determining the ability
to deliver on a given contract based on scope and size, as a
responsible and responsive bidder.
When a contractor or vendor submits a bid or letter of
intent in response to a request for proposal or other bid
submission, the contractor or vendor shall include with its
responsive documents a utilization plan that shall address how
compliance with applicable good faith requirements set forth
in this subsection shall be addressed.
Under this subsection, "good faith effort" means a
community water supply has taken all necessary steps to comply
with the goals of this subsection by complying with the
following:
(1) Soliciting through reasonable and available means
the interest of a business, as defined in Section 2 of the

SB0238 - 727 - LRB103 24882 DTM 51215 b
Business Enterprise for Minorities, Women, Veterans, and
Persons with Disabilities Act, that have the capability to
perform the work of the contract. The community water
supply must solicit this interest within sufficient time
to allow certified businesses to respond.
(2) Providing interested certified businesses with
adequate information about the plans, specifications, and
requirements of the contract, including addenda, in a
timely manner to assist them in responding to the
solicitation.
(3) Meeting in good faith with interested certified
businesses that have submitted bids.
(4) Effectively using the services of the State,
minority or women community organizations, minority or
women contractor groups, local, State, and federal
minority or women business assistance offices, and other
organizations to provide assistance in the recruitment and
placement of certified businesses.
(5) Making efforts to use appropriate forums for
purposes of advertising subcontracting opportunities
suitable for certified businesses.
The diversity goals defined in this subsection can be met
through direct award to diverse contractors and through the
use of diverse subcontractors and diverse vendors to
contracts.
(o) An owner or operator of a community water supply shall

SB0238 - 728 - LRB103 24882 DTM 51215 b
collect data necessary to ensure compliance with subsection
(n) no less than semi-annually and shall include progress
toward compliance of subsection (n) in the owner or operator's
report required under subsection (t-5). The report must
include data on vendor and employee diversity, including data
on the owner's or operator's implementation of subsection (n).
(p) Every owner or operator of a community water supply
that has known or suspected lead service lines shall:
(1) create a plan to:
(A) replace each lead service line connected to
its distribution system; and
(B) replace each galvanized service line connected
to its distribution system, if the galvanized service
line is or was connected downstream to lead piping;
and
(2) electronically submit, by April 15, 2024 its
initial lead service line replacement plan to the Agency;
(3) electronically submit by April 15 of each year
after 2024 until April 15, 2027 an updated lead service
line replacement plan to the Agency for review; the
updated replacement plan shall account for changes in the
number of lead service lines or unknown service lines in
the material inventory described in subsection (d);
(4) electronically submit by April 15, 2027 a complete
and final replacement plan to the Agency for approval; the
complete and final replacement plan shall account for all

SB0238 - 729 - LRB103 24882 DTM 51215 b
known and suspected lead service lines documented in the
final material inventory described under paragraph (3) of
subsection (d); and
(5) post on its website a copy of the plan most
recently submitted to the Agency or may request that the
Agency post a copy of that plan on the Agency's website.
(q) Each plan required under paragraph (1) of subsection
(p) shall include the following:
(1) the name and identification number of the
community water supply;
(2) the total number of service lines connected to the
distribution system of the community water supply;
(3) the total number of suspected lead service lines
connected to the distribution system of the community
water supply;
(4) the total number of known lead service lines
connected to the distribution system of the community
water supply;
(5) the total number of lead service lines connected
to the distribution system of the community water supply
that have been replaced each year beginning in 2020;
(6) a proposed lead service line replacement schedule
that includes one-year, 5-year, 10-year, 15-year, 20-year,
25-year, and 30-year goals;
(7) an analysis of costs and financing options for
replacing the lead service lines connected to the

SB0238 - 730 - LRB103 24882 DTM 51215 b
community water supply's distribution system, which shall
include, but shall not be limited to:
(A) a detailed accounting of costs associated with
replacing lead service lines and galvanized lines that
are or were connected downstream to lead piping;
(B) measures to address affordability and prevent
service shut-offs for customers or ratepayers; and
(C) consideration of different scenarios for
structuring payments between the utility and its
customers over time; and
(8) a plan for prioritizing high-risk facilities, such
as preschools, day care centers, day care homes, group day
care homes, parks, playgrounds, hospitals, and clinics, as
well as high-risk areas identified by the community water
supply;
(9) a map of the areas where lead service lines are
expected to be found and the sequence with which those
areas will be inventoried and lead service lines replaced;
(10) measures for how the community water supply will
inform the public of the plan and provide opportunity for
public comment; and
(11) measures to encourage diversity in hiring in the
workforce required to implement the plan as identified
under subsection (n).
(r) The Agency shall review final plans submitted to it
under subsection (p). The Agency shall approve a final plan if

SB0238 - 731 - LRB103 24882 DTM 51215 b
the final plan includes all of the elements set forth under
subsection (q) and the Agency determines that:
(1) the proposed lead service line replacement
schedule set forth in the plan aligns with the timeline
requirements set forth under subsection (v);
(2) the plan prioritizes the replacement of lead
service lines that provide water service to high-risk
facilities, such as preschools, day care centers, day care
homes, group day care homes, parks, playgrounds,
hospitals, and clinics, and high-risk areas identified by
the community water supply;
(3) the plan includes analysis of cost and financing
options; and
(4) the plan provides documentation of public review.
(s) An owner or operator of a community water supply has no
duty to include in the plans required under subsection (p)
information about service lines that are physically
disconnected from a water main in its distribution system.
(t) If a community water supply does not deliver a
complete plan to the Agency by April 15, 2027, the community
water supply may apply to the Agency for an extension no less
than 3 months prior to the due date. The Agency shall develop
criteria for granting plan extensions. When considering
requests for extension, the Agency shall, at a minimum,
consider:
(1) the number of service connections in a water

SB0238 - 732 - LRB103 24882 DTM 51215 b
supply; and
(2) the number of service lines of an unknown material
composition.
(t-5) After the Agency has approved the final replacement
plan described in subsection (p), the owner or operator of a
community water supply shall submit a report detailing
progress toward plan goals to the Agency for its review. The
report shall be submitted annually for the first 10 years, and
every 3 years thereafter until all lead service lines have
been replaced. Reports under this subsection shall be
published in the same manner described in subsection (l). The
report shall include at least the following information as it
pertains to the preceding reporting period:
(1) The number of lead service lines replaced and the
average cost of lead service line replacement.
(2) Progress toward meeting hiring requirements as
described in subsection (n) and subsection (o).
(3) The percent of customers electing a waiver
offered, as described in subsections (ii) and (jj), among
those customers receiving a request or notification to
perform a lead service line replacement.
(4) The method or methods used by the community water
supply to finance lead service line replacement.
(u) Notwithstanding any other provision of law, in order
to provide for costs associated with lead service line
remediation and replacement, the corporate authorities of a

SB0238 - 733 - LRB103 24882 DTM 51215 b
municipality may, by ordinance or resolution by the corporate
authorities, exercise authority provided in Section 27-5 et
seq. of the Property Tax Code and Sections 8-3-1, 8-11-1,
8-11-5, 8-11-6, 9-1-1 et seq., 9-3-1 et seq., 9-4-1 et seq.,
11-131-1, and 11-150-1 of the Illinois Municipal Code. Taxes
levied for this purpose shall be in addition to taxes for
general purposes authorized under Section 8-3-1 of the
Illinois Municipal Code and shall be included in the taxing
district's aggregate extension for the purposes of Division 5
of Article 18 of the Property Tax Code.
(v) Every owner or operator of a community water supply
shall replace all known lead service lines, subject to the
requirements of subsection (ff), according to the following
replacement rates and timelines to be calculated from the date
of submission of the final replacement plan to the Agency:
(1) A community water supply reporting 1,200 or fewer
lead service lines in its final inventory and replacement
plan shall replace all lead service lines, at an annual
rate of no less than 7% of the amount described in the
final inventory, with a timeline of up to 15 years for
completion.
(2) A community water supply reporting more than 1,200
but fewer than 5,000 lead service lines in its final
inventory and replacement plan shall replace all lead
service lines, at an annual rate of no less than 6% of the
amount described in the final inventory, with a timeline

SB0238 - 734 - LRB103 24882 DTM 51215 b
of up to 17 years for completion.
(3) A community water supply reporting more than 4,999
but fewer than 10,000 lead service lines in its final
inventory and replacement plan shall replace all lead
service lines, at an annual rate of no less than 5% of the
amount described in the final inventory, with a timeline
of up to 20 years for completion.
(4) A community water supply reporting more than 9,999
but fewer than 99,999 lead service lines in its final
inventory and replacement plan shall replace all lead
service lines, at an annual rate of no less than 3% of the
amount described in the final inventory, with a timeline
of up to 34 years for completion.
(5) A community water supply reporting more than
99,999 lead service lines in its final inventory and
replacement plan shall replace all lead service lines, at
an annual rate of no less than 2% of the amount described
in the final inventory, with a timeline of up to 50 years
for completion.
(w) A community water supply may apply to the Agency for an
extension to the replacement timelines described in paragraphs
(1) through (5) of subsection (v). The Agency shall develop
criteria for granting replacement timeline extensions. When
considering requests for timeline extensions, the Agency
shall, at a minimum, consider:
(1) the number of service connections in a water

SB0238 - 735 - LRB103 24882 DTM 51215 b
supply; and
(2) unusual circumstances creating hardship for a
community.
The Agency may grant one extension of additional time
equal to not more than 20% of the original replacement
timeline, except in situations of extreme hardship in which
the Agency may consider a second additional extension equal to
not more than 10% of the original replacement timeline.
Replacement rates and timelines shall be calculated from
the date of submission of the final plan to the Agency.
(x) The Lead Service Line Replacement Advisory Board is
created within the Agency. The Advisory Board shall convene
within 120 days after January 1, 2022 (the effective date of
Public Act 102-613).
The Advisory Board shall consist of at least 28 voting
members, as follows:
(1) the Director of the Agency, or his or her
designee, who shall serve as chairperson;
(2) the Director of Revenue, or his or her designee;
(3) the Director of Public Health, or his or her
designee;
(4) fifteen members appointed by the Agency as
follows:
(A) one member representing a statewide
organization of municipalities as authorized by
Section 1-8-1 of the Illinois Municipal Code;

SB0238 - 736 - LRB103 24882 DTM 51215 b
(B) two members who are mayors representing
municipalities located in any county south of the
southernmost county represented by one of the 10
largest municipalities in Illinois by population, or
their respective designees;
(C) two members who are representatives from
public health advocacy groups;
(D) two members who are representatives from
publicly-owned water utilities;
(E) one member who is a representative from a
public utility as defined under Section 3-105 of the
Public Utilities Act that provides water service in
the State of Illinois;
(F) one member who is a research professional
employed at an Illinois academic institution and
specializing in water infrastructure research;
(G) two members who are representatives from
nonprofit civic organizations;
(H) one member who is a representative from a
statewide organization representing environmental
organizations;
(I) two members who are representatives from
organized labor; and
(J) one member representing an environmental
justice organization; and
(5) ten members who are the mayors of the 10 largest

SB0238 - 737 - LRB103 24882 DTM 51215 b
municipalities in Illinois by population, or their
respective designees.
No less than 10 of the 28 voting members shall be persons
of color, and no less than 3 shall represent communities
defined or self-identified as environmental justice
communities.
Advisory 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. The Agency shall provide administrative support to
the Advisory Board.
The Advisory Board shall meet no less than once every 6
months.
(y) The Advisory Board shall have, at a minimum, the
following duties:
(1) advising the Agency on best practices in lead
service line replacement;
(2) reviewing the progress of community water supplies
toward lead service line replacement goals;
(3) advising the Agency on other matters related to
the administration of the provisions of this Section;
(4) advising the Agency on the integration of existing
lead service line replacement plans with any statewide
plan; and
(5) providing technical support and practical
expertise in general.

SB0238 - 738 - LRB103 24882 DTM 51215 b
(z) Within 18 months after January 1, 2022 (the effective
date of Public Act 102-613), the Advisory Board shall deliver
a report of its recommendations to the Governor and the
General Assembly concerning opportunities for dedicated,
long-term revenue options for funding lead service line
replacement. In submitting recommendations, the Advisory Board
shall consider, at a minimum, the following:
(1) the sufficiency of various revenue sources to
adequately fund replacement of all lead service lines in
Illinois;
(2) the financial burden, if any, on households
falling below 150% of the federal poverty limit;
(3) revenue options that guarantee low-income
households are protected from rate increases;
(4) an assessment of the ability of community water
supplies to assess and collect revenue;
(5) variations in financial resources among individual
households within a service area; and
(6) the protection of low-income households from rate
increases.
(aa) Within 10 years after January 1, 2022 (the effective
date of Public Act 102-613), the Advisory Board shall prepare
and deliver a report to the Governor and General Assembly
concerning the status of all lead service line replacement
within the State.
(bb) The Lead Service Line Replacement Fund is created as

SB0238 - 739 - LRB103 24882 DTM 51215 b
a special fund in the State treasury to be used by the Agency
for the purposes provided under this Section. The Fund shall
be used exclusively to finance and administer programs and
activities specified under this Section and listed under this
subsection.
The objective of the Fund is to finance activities
associated with identifying and replacing lead service lines,
build Agency capacity to oversee the provisions of this
Section, and provide related assistance for the activities
listed under this subsection.
The Agency shall be responsible for the administration of
the Fund and shall allocate moneys on the basis of priorities
established by the Agency through administrative rule. On July
1, 2022 and on July 1 of each year thereafter, the Agency shall
determine the available amount of resources in the Fund that
can be allocated to the activities identified under this
Section and shall allocate the moneys accordingly.
Notwithstanding any other law to the contrary, the Lead
Service Line Replacement Fund is not subject to sweeps,
administrative charge-backs, or any other fiscal maneuver that
would in any way transfer any amounts from the Lead Service
Line Replacement Fund into any other fund of the State.
(cc) Within one year after January 1, 2022 (the effective
date of Public Act 102-613), the Agency shall design rules for
a program for the purpose of administering lead service line
replacement funds. The rules must, at minimum, contain:

SB0238 - 740 - LRB103 24882 DTM 51215 b
(1) the process by which community water supplies may
apply for funding; and
(2) the criteria for determining unit of local
government eligibility and prioritization for funding,
including the prevalence of low-income households, as
measured by median household income, the prevalence of
lead service lines, and the prevalence of water samples
that demonstrate elevated levels of lead.
(dd) Funding under subsection (cc) shall be available for
costs directly attributable to the planning, design, or
construction directly related to the replacement of lead
service lines and restoration of property.
Funding shall not be used for the general operating
expenses of a municipality or community water supply.
(ee) An owner or operator of any community water supply
receiving grant funding under subsection (cc) shall bear the
entire expense of full lead service line replacement for all
lead service lines in the scope of the grant.
(ff) When replacing a lead service line, the owner or
operator of the community water supply shall replace the
service line in its entirety, including, but not limited to,
any portion of the service line (i) running on private
property and (ii) within the building's plumbing at the first
shut-off valve. Partial lead service line replacements are
expressly prohibited. Exceptions shall be made under the
following circumstances:

SB0238 - 741 - LRB103 24882 DTM 51215 b
(1) In the event of an emergency repair that affects a
lead service line or a suspected lead service line, a
community water supply must contact the building owner to
begin the process of replacing the entire service line. If
the building owner is not able to be contacted or the
building owner or occupant refuses to grant access and
permission to replace the entire service line at the time
of the emergency repair, then the community water supply
may perform a partial lead service line replacement. Where
an emergency repair on a service line constructed of lead
or galvanized steel pipe results in a partial service line
replacement, the water supply responsible for commencing
the repair shall perform the following:
(A) Notify the building's owner or operator and
the resident or residents served by the lead service
line in writing that a repair has been completed. The
notification shall include, at a minimum:
(i) a warning that the work may result in
sediment, possibly containing lead, in the
buildings water supply system;
(ii) information concerning practices for
preventing the consumption of any lead in drinking
water, including a recommendation to flush water
distribution pipe during and after the completion
of the repair or replacement work and to clean
faucet aerator screens; and

SB0238 - 742 - LRB103 24882 DTM 51215 b
(iii) information regarding the dangers of
lead to young children and pregnant women.
(B) Provide filters for at least one fixture
supplying potable water for consumption. The filter
must be certified by an accredited third-party
certification body to NSF/ANSI 53 and NSF/ANSI 42 for
the reduction of lead and particulate. The filter must
be provided until such time that the remaining
portions of the service line have been replaced with a
material approved by the Department or a waiver has
been issued under subsection (ii).
(C) Replace the remaining portion of the lead
service line within 30 days of the repair, or 120 days
in the event of weather or other circumstances beyond
reasonable control that prohibits construction. If a
complete lead service line replacement cannot be made
within the required period, the community water supply
responsible for commencing the repair shall notify the
Department in writing, at a minimum, of the following
within 24 hours of the repair:
(i) an explanation of why it is not feasible
to replace the remaining portion of the lead
service line within the allotted time; and
(ii) a timeline for when the remaining portion
of the lead service line will be replaced.
(D) If complete repair of a lead service line

SB0238 - 743 - LRB103 24882 DTM 51215 b
cannot be completed due to denial by the property
owner, the community water supply commencing the
repair shall request the affected property owner to
sign a waiver developed by the Department. If a
property owner of a nonresidential building or
residence operating as rental properties denies a
complete lead service line replacement, the property
owner shall be responsible for installing and
maintaining point-of-use filters certified by an
accredited third-party certification body to NSF/ANSI
53 and NSF/ANSI 42 for the reduction of lead and
particulate at all fixtures intended to supply water
for the purposes of drinking, food preparation, or
making baby formula. The filters shall continue to be
supplied by the property owner until such time that
the property owner has affected the remaining portions
of the lead service line to be replaced.
(E) Document any remaining lead service line,
including a portion on the private side of the
property, in the community water supply's distribution
system materials inventory required under subsection
(d).
For the purposes of this paragraph (1), written notice
shall be provided in the method and according to the
provisions of subsection (jj).
(2) Lead service lines that are physically

SB0238 - 744 - LRB103 24882 DTM 51215 b
disconnected from the distribution system are exempt from
this subsection.
(gg) Except as provided in subsection (hh), on and after
January 1, 2022, when the owner or operator of a community
water supply replaces a water main, the community water supply
shall identify all lead service lines connected to the water
main and shall replace the lead service lines by:
(1) identifying the material or materials of each lead
service line connected to the water main, including, but
not limited to, any portion of the service line (i)
running on private property and (ii) within the building
plumbing at the first shut-off valve or 18 inches inside
the building, whichever is shorter;
(2) in conjunction with replacement of the water main,
replacing any and all portions of each lead service line
connected to the water main that are composed of lead; and
(3) if a property owner or customer refuses to grant
access to the property, following prescribed notice
provisions as outlined in subsection (ff).
If an owner of a potentially affected building intends to
replace a portion of a lead service line or a galvanized
service line and the galvanized service line is or was
connected downstream to lead piping, then the owner of the
potentially affected building shall provide the owner or
operator of the community water supply with notice at least 45
days before commencing the work. In the case of an emergency

SB0238 - 745 - LRB103 24882 DTM 51215 b
repair, the owner of the potentially affected building must
provide filters for each kitchen area that are certified by an
accredited third-party certification body to NSF/ANSI 53 and
NSF/ANSI 42 for the reduction of lead and particulate. If the
owner of the potentially affected building notifies the owner
or operator of the community water supply that replacement of
a portion of the lead service line after the emergency repair
is completed, then the owner or operator of the community
water supply shall replace the remainder of the lead service
line within 30 days after completion of the emergency repair.
A community water supply may take up to 120 days if necessary
due to weather conditions. If a replacement takes longer than
30 days, filters provided by the owner of the potentially
affected building must be replaced in accordance with the
manufacturer's recommendations. Partial lead service line
replacements by the owners of potentially affected buildings
are otherwise prohibited.
(hh) For municipalities with a population in excess of
1,000,000 inhabitants, the requirements of subsection (gg)
shall commence on January 1, 2023.
(ii) At least 45 days before conducting planned lead
service line replacement, the owner or operator of a community
water supply shall, by mail, attempt to contact the owner of
the potentially affected building serviced by the lead service
line to request access to the building and permission to
replace the lead service line in accordance with the lead

SB0238 - 746 - LRB103 24882 DTM 51215 b
service line replacement plan. If the owner of the potentially
affected building does not respond to the request within 15
days after the request is sent, the owner or operator of the
community water supply shall attempt to post the request on
the entrance of the potentially affected building.
If the owner or operator of a community water supply is
unable to obtain approval to access and replace a lead service
line, the owner or operator of the community water supply
shall request that the owner of the potentially affected
building sign a waiver. The waiver shall be developed by the
Department and should be made available in the owner's
language. If the owner of the potentially affected building
refuses to sign the waiver or fails to respond to the community
water supply after the community water supply has complied
with this subsection, then the community water supply shall
notify the Department in writing within 15 working days.
(jj) When replacing a lead service line or repairing or
replacing water mains with lead service lines or partial lead
service lines attached to them, the owner or operator of a
community water supply shall provide the owner of each
potentially affected building that is serviced by the affected
lead service lines or partial lead service lines, as well as
the occupants of those buildings, with an individual written
notice. The notice shall be delivered by mail or posted at the
primary entranceway of the building. The notice may, in
addition, be electronically mailed. Written notice shall

SB0238 - 747 - LRB103 24882 DTM 51215 b
include, at a minimum, the following:
(1) a warning that the work may result in sediment,
possibly containing lead from the service line, in the
building's water;
(2) information concerning the best practices for
preventing exposure to or risk of consumption of lead in
drinking water, including a recommendation to flush water
lines during and after the completion of the repair or
replacement work and to clean faucet aerator screens; and
(3) information regarding the dangers of lead exposure
to young children and pregnant women.
When the individual written notice described in the first
paragraph of this subsection is required as a result of
planned work other than the repair or replacement of a water
meter, the owner or operator of the community water supply
shall provide the notice not less than 14 days before work
begins. When the individual written notice described in the
first paragraph of this subsection is required as a result of
emergency repairs other than the repair or replacement of a
water meter, the owner or operator of the community water
supply shall provide the notice at the time the work is
initiated. When the individual written notice described in the
first paragraph of this subsection is required as a result of
the repair or replacement of a water meter, the owner or
operator of the community water supply shall provide the
notice at the time the work is initiated.

SB0238 - 748 - LRB103 24882 DTM 51215 b
The notifications required under this subsection must
contain the following statement in Spanish, Polish, Chinese,
Tagalog, Arabic, Korean, German, Urdu, and Gujarati: "This
notice contains important information about your water service
and may affect your rights. We encourage you to have this
notice translated in full into a language you understand and
before you make any decisions that may be required under this
notice."
An owner or operator of a community water supply that is
required under this subsection to provide an individual
written notice to the owner and occupant of a potentially
affected building that is a multi-dwelling building may
satisfy that requirement and the requirements of this
subsection regarding notification to non-English speaking
customers by posting the required notice on the primary
entranceway of the building and at the location where the
occupant's mail is delivered as reasonably as possible.
When this subsection would require the owner or operator
of a community water supply to provide an individual written
notice to the entire community served by the community water
supply or would require the owner or operator of a community
water supply to provide individual written notices as a result
of emergency repairs or when the community water supply that
is required to comply with this subsection is a small system,
the owner or operator of the community water supply may
provide the required notice through local media outlets,

SB0238 - 749 - LRB103 24882 DTM 51215 b
social media, or other similar means in lieu of providing the
individual written notices otherwise required under this
subsection.
No notifications are required under this subsection for
work performed on water mains that are used to transmit
treated water between community water supplies and properties
that have no service connections.
(kk) No community water supply that sells water to any
wholesale or retail consecutive community water supply may
pass on any costs associated with compliance with this Section
to consecutive systems.
(ll) To the extent allowed by law, when a community water
supply replaces or installs a lead service line in a public
right-of-way or enters into an agreement with a private
contractor for replacement or installation of a lead service
line, the community water supply shall be held harmless for
all damage to property when replacing or installing the lead
service line. If dangers are encountered that prevent the
replacement of the lead service line, the community water
supply shall notify the Department within 15 working days of
why the replacement of the lead service line could not be
accomplished.
(mm) The Agency may propose to the Board, and the Board may
adopt, any rules necessary to implement and administer this
Section. The Department may adopt rules necessary to address
lead service lines attached to non-community water supplies.

SB0238 - 750 - LRB103 24882 DTM 51215 b
(nn) Notwithstanding any other provision in this Section,
no requirement in this Section shall be construed as being
less stringent than existing applicable federal requirements.
(oo) All lead service line replacements financed in whole
or in part with funds obtained under this Section shall be
considered public works for purposes of the Prevailing Wage
Act.
(Source: P.A. 102-613, eff. 1-1-22; 102-813, eff. 5-13-22.)
Section 200. The Public Private Agreements for the Illiana
Expressway Act is amended by changing Section 20 as follows:
(605 ILCS 130/20)
Sec. 20. Procurement; request for proposals process.
(a) Notwithstanding any provision of law to the contrary,
the Department on behalf of the State shall select a
contractor through a competitive request for proposals process
governed by the Illinois Procurement Code and rules adopted
under that Code and this Act.
(b) The competitive request for proposals process shall,
at a minimum, solicit statements of qualification and
proposals from offerors.
(c) The competitive request for proposals process shall,
at a minimum, take into account the following criteria:
(1) The offeror's plans for the Illiana Expressway
project;

SB0238 - 751 - LRB103 24882 DTM 51215 b
(2) The offeror's current and past business practices;
(3) The offeror's poor or inadequate past performance
in developing, financing, constructing, managing, or
operating highways or other public assets;
(4) The offeror's ability to meet and past performance
in meeting or exhausting good faith efforts to meet the
utilization goals for business enterprises established in
the Business Enterprise for Minorities, Women, Veterans,
and Persons with Disabilities Act;
(5) The offeror's ability to comply with and past
performance in complying with Section 2-105 of the
Illinois Human Rights Act; and
(6) The offeror's plans to comply with the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act and Section 2-105 of the Illinois
Human Rights Act.
(d) The Department shall retain the services of an advisor
or advisors with significant experience in the development,
financing, construction, management, or operation of public
assets to assist in the preparation of the request for
proposals.
(e) The Department shall not include terms in the request
for proposals that provide an advantage, whether directly or
indirectly, to any contractor presently providing goods,
services, or equipment to the Department.
(f) The Department shall select at least 2 offerors as

SB0238 - 752 - LRB103 24882 DTM 51215 b
finalists. The Department shall submit the offerors'
statements of qualification and proposals to the Commission on
Government Forecasting and Accountability and the Procurement
Policy Board, which shall, within 30 days of the submission,
complete a review of the statements of qualification and
proposals and, jointly or separately, report on, at a minimum,
the satisfaction of the criteria contained in the request for
proposals, the qualifications of the offerors, and the value
of the proposals to the State. The Department shall not select
an offeror as the contractor for the Illiana Expressway
project until it has received and considered the findings of
the Commission on Government Forecasting and Accountability
and the Procurement Policy Board as set forth in their
respective reports.
(g) Before awarding a public private agreement to an
offeror, the Department shall schedule and hold a public
hearing or hearings on the proposed public private agreement
and publish notice of the hearing or hearings at least 7 days
before the hearing and in accordance with Section 4-219 of the
Illinois Highway Code. The notice must include the following:
(1) the date, time, and place of the hearing and the
address of the Department;
(2) the subject matter of the hearing;
(3) a description of the agreement that may be
awarded; and
(4) the recommendation that has been made to select an

SB0238 - 753 - LRB103 24882 DTM 51215 b
offeror as the contractor for the Illiana Expressway
project.
At the hearing, the Department shall allow the public to
be heard on the subject of the hearing.
(h) After the procedures required in this Section have
been completed, the Department shall make a determination as
to whether the offeror should be designated as the contractor
for the Illiana Expressway project and shall submit the
decision to the Governor and to the Governor's Office of
Management and Budget. After review of the Department's
determination, the Governor may accept or reject the
determination. If the Governor accepts the determination of
the Department, the Governor shall designate the offeror for
the Illiana Expressway project.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 205. The Public-Private Agreements for the South
Suburban Airport Act is amended by changing Section 2-30 as
follows:
(620 ILCS 75/2-30)
Sec. 2-30. Request for proposals process to enter into
public-private agreements.
(a) Notwithstanding any provisions of the Illinois
Procurement Code, the Department, on behalf of the State,
shall select a contractor through a competitive request for

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proposals process governed by Section 2-30 of this Act. The
Department will consult with the chief procurement officer for
construction or construction-related activities designated
pursuant to clause (2) of Section 1-15.15 of the Illinois
Procurement Code on the competitive request for proposals
process, and the Secretary will determine, in consultation
with the chief procurement officer, which procedures to adopt
and apply to the competitive request for proposals process in
order to ensure an open, transparent, and efficient process
that accomplishes the purposes of this Act.
(b) The competitive request for proposals process shall,
at a minimum, solicit statements of qualification and
proposals from offerors.
(c) The competitive request for proposals process shall,
at a minimum, take into account the following criteria:
(1) the offeror's plans for the South Suburban Airport
project;
(2) the offeror's current and past business practices;
(3) the offeror's poor or inadequate past performance
in developing, financing, constructing, managing, or
operating airports or other public assets;
(4) the offeror's ability to meet the utilization
goals for business enterprises established in the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act;
(5) the offeror's ability to comply with Section 2-105

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of the Illinois Human Rights Act; and
(6) the offeror's plans to comply with the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act and Section 2-105 of the Illinois
Human Rights Act.
(d) The Department shall retain the services of an advisor
or advisors with significant experience in the development,
financing, construction, management, or operation of public
assets to assist in the preparation of the request for
proposals.
(e) The Department shall not include terms in the request
for proposals that provide an advantage, whether directly or
indirectly, to any contractor presently providing goods,
services, or equipment to the Department.
(f) The Department shall select one or more offerors as
finalists. The Department shall submit the offeror's
statements of qualification and proposals to the Commission on
Government Forecasting and Accountability and the Procurement
Policy Board, which shall, within 30 days after the
submission, complete a review of the statements of
qualification and proposals and, jointly or separately, report
on, at a minimum, the satisfaction of the criteria contained
in the request for proposals, the qualifications of the
offerors, and the value of the proposals to the State. The
Department shall not select an offeror as the contractor for
the South Suburban Airport project until it has received and

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considered the findings of the Commission on Government
Forecasting and Accountability and the Procurement Policy
Board as set forth in their respective reports.
(g) Before awarding a public-private agreement to an
offeror, the Department shall schedule and hold a public
hearing or hearings on the proposed public-private agreement
and publish notice of the hearing or hearings at least 7 days
before the hearing. The notice shall include the following:
(1) the date, time, and place of the hearing and the
address of the Department;
(2) the subject matter of the hearing;
(3) a description of the agreement that may be
awarded; and
(4) the recommendation that has been made to select an
offeror as the contractor for the South Suburban Airport
project.
At the hearing, the Department shall allow the public to
be heard on the subject of the hearing.
(h) After the procedures required in this Section have
been completed, the Department shall make a determination as
to whether the offeror should be designated as the contractor
for the South Suburban Airport project and shall submit the
decision to the Governor and to the Governor's Office of
Management and Budget. After review of the Department's
determination, the Governor may accept or reject the
determination. If the Governor accepts the determination of

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the Department, the Governor shall designate the offeror for
the South Suburban Airport project.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 206. The Illinois Vehicle Code is amended by
changing Section 13C-80 as follows:
(625 ILCS 5/13C-80)
Sec. 13C-80. Inspection replacement plan; report to
General Assembly. By October 1, 2022, the Agency shall submit
a written report to the General Assembly containing its plan
to replace the dismantled official inspection stations located
in the City of Chicago. The removal of the official inspection
stations adversely impacted Chicago's 2.8 million population.
The plan shall consist of either a pilot program or a
permanent replacement program. The described plan shall
provide information on the proposed locations of the new
stations within the City of Chicago, information on programs
implemented in other states, and a target date for full
operation of all stations. The Agency shall issue a request
for proposals related to its plan by January 1, 2023.
The described plan shall also contain a timeline of
actions including the issuance of a request for proposals by
January 1, 2023. The plan shall include procurement of
services, technology, equipment, and other elements necessary
to replace the former vehicle testing lanes and shall state

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whether the replacement stations in the City of Chicago will
utilize permanent self-service kiosks or other services. The
plan shall also include the Agency's strategy of how best to
inform people of the location and hours of operation of the new
official inspection stations and conduct an informational
campaign.
Any contracts awarded as a result of this plan shall
adhere to all State procurement requirements. The State shall
consider contracting with minority-owned businesses as defined
in Section 2 of the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act.
(Source: P.A. 102-738, eff. 5-6-22.)
Section 210. The Public-Private Partnerships for
Transportation Act is amended by changing Section 25 as
follows:
(630 ILCS 5/25)
Sec. 25. Design-build procurement.
(a) This Section 25 shall apply only to transportation
projects for which the Department or the Authority intends to
execute a design-build agreement, in which case the Department
or the Authority shall abide by the requirements and
procedures of this Section 25 in addition to other applicable
requirements and procedures set forth in this Act.
(b)(1) The transportation agency must issue a notice of

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intent to receive proposals for the project at least 14 days
before issuing the request for the qualifications. The
transportation agency must publish the advance notice in a
daily newspaper of general circulation in the county where the
transportation agency is located. The transportation agency is
encouraged to use publication of the notice in related
construction industry service publications. A brief
description of the proposed procurement must be included in
the notice. The transportation agency must provide a copy of
the request for qualifications to any party requesting a copy.
(2) The request for qualifications shall be prepared for
each project and must contain, without limitation, the
following information: (i) the name of the transportation
agency; (ii) a preliminary schedule for the completion of the
contract; (iii) the proposed budget for the project and the
source of funds, to the extent not already reflected in the
Department's Multi-Year Highway Improvement Program; (iv) the
shortlisting process for entities or groups of entities such
as unincorporated joint ventures wishing to submit proposals
(the transportation agency shall include, at a minimum, its
normal prequalification, licensing, registration, and other
requirements, but nothing contained herein precludes the use
of additional criteria by the transportation agency); (v) a
summary of anticipated material requirements of the contract,
including but not limited to, the proposed terms and
conditions, required performance and payment bonds, insurance,

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and the utilization goals established by the transportation
agency for minority and women business enterprises and
compliance with Section 2-105 of the Illinois Human Rights
Act; and (vi) the anticipated number of entities that will be
shortlisted for the request for proposals phase.
(3) The transportation agency may include any other
relevant information in the request for qualifications that it
chooses to supply. The private entity shall be entitled to
rely upon the accuracy of this documentation in the
development of its statement of qualifications and its
proposal only to the extent expressly warranted by the
transportation agency.
(4) The date that statements of qualifications are due
must be at least 21 calendar days after the date of the
issuance of the request for qualifications. In the event the
cost of the project is estimated to exceed $12,000,000, then
the statement of qualifications due date must be at least 28
calendar days after the date of the issuance of the request for
qualifications. The transportation agency shall include in the
request for proposals a minimum of 30 days to develop the
proposals after the selection of entities from the evaluation
of the statements of qualifications is completed.
(c)(1) The transportation agency shall develop, with the
assistance of a licensed design professional, the request for
qualifications and the request for proposals, which shall
include scope and performance criteria. The scope and

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performance criteria must be in sufficient detail and contain
adequate information to reasonably apprise the private
entities of the transportation agency's overall programmatic
needs and goals, including criteria and preliminary design
plans, general budget parameters, schedule, and delivery
requirements.
(2) Each request for qualifications and request for
proposals shall also include a description of the level of
design to be provided in the proposals. This description must
include the scope and type of renderings, drawings, and
specifications that, at a minimum, will be required by the
transportation agency to be produced by the private entities.
(3) The scope and performance criteria shall be prepared
by a design professional who is an employee of the
transportation agency, or the transportation agency may
contract with an independent design professional selected
under the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act to provide these services.
(4) The design professional that prepares the scope and
performance criteria is prohibited from participating in any
private entity proposal for the project.
(d)(1) The transportation agency must use a two phase
procedure for the selection of the successful design-build
entity. The request for qualifications phase will evaluate and
shortlist the private entities based on qualifications, and
the request for proposals will evaluate the technical and cost

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proposals.
(2) The transportation agency shall include in the request
for qualifications the evaluating factors to be used in the
request for qualifications phase. These factors are in
addition to any prequalification requirements of private
entities that the transportation agency has set forth. Each
request for qualifications shall establish the relative
importance assigned to each evaluation factor, including any
weighting of criteria to be employed by the transportation
agency. The transportation agency must maintain a record of
the evaluation scoring to be disclosed in event of a protest
regarding the solicitation.
The transportation agency shall include the following
criteria in every request for qualifications phase evaluation
of private entities: (i) experience of personnel; (ii)
successful experience with similar project types; (iii)
financial capability; (iv) timeliness of past performance; (v)
experience with similarly sized projects; (vi) successful
reference checks of the firm; (vii) commitment to assign
personnel for the duration of the project and qualifications
of the entity's consultants; and (viii) ability or past
performance in meeting or exhausting good faith efforts to
meet the utilization goals for business enterprises
established in the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act and in complying
with Section 2-105 of the Illinois Human Rights Act. No

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proposal shall be considered that does not include an entity's
plan to comply with the requirements regarding minority and
women business enterprises and economically disadvantaged
firms established by the transportation agency and with
Section 2-105 of the Illinois Human Rights Act. The
transportation agency may include any additional relevant
criteria in the request for qualifications phase that it deems
necessary for a proper qualification review.
Upon completion of the qualifications evaluation, the
transportation agency shall create a shortlist of the most
highly qualified private entities.
The transportation agency shall notify the entities
selected for the shortlist in writing. This notification shall
commence the period for the preparation of the request for
proposals phase technical and cost evaluations. The
transportation agency must allow sufficient time for the
shortlist entities to prepare their proposals considering the
scope and detail requested by the transportation agency.
(3) The transportation agency shall include in the request
for proposals the evaluating factors to be used in the
technical and cost submission components. Each request for
proposals shall establish, for both the technical and cost
submission components, the relative importance assigned to
each evaluation factor, including any weighting of criteria to
be employed by the transportation agency. The transportation
agency must maintain a record of the evaluation scoring to be

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disclosed in event of a protest regarding the solicitation.
The transportation agency shall include the following
criteria in every request for proposals phase technical
evaluation of private entities: (i) compliance with objectives
of the project; (ii) compliance of proposed services to the
request for proposal requirements; (iii) compliance with the
request for proposal requirements of products or materials
proposed; (iv) quality of design parameters; and (v) design
concepts. The transportation agency may include any additional
relevant technical evaluation factors it deems necessary for
proper selection.
The transportation agency shall include the following
criteria in every request for proposals phase cost evaluation:
the total project cost and the time of completion. The
transportation agency may include any additional relevant
technical evaluation factors it deems necessary for proper
selection. The guaranteed maximum project cost criteria
weighing factor shall not exceed 30%.
The transportation agency shall directly employ or retain
a licensed design professional to evaluate the technical and
cost submissions to determine if the technical submissions are
in accordance with generally accepted industry standards.
(e) Statements of qualifications and proposals must be
properly identified and sealed. Statements of qualifications
and proposals may not be reviewed until after the deadline for
submission has passed as set forth in the request for

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qualifications or the request for proposals. All private
entities submitting statements of qualifications or proposals
shall be disclosed after the deadline for submission, and all
private entities who are selected for request for proposals
phase evaluation shall also be disclosed at the time of that
determination.
Design-build proposals shall include a bid bond in the
form and security as designated in the request for proposals.
Proposals shall also contain a separate sealed envelope with
the cost information within the overall proposal submission.
Proposals shall include a list of all design professionals and
other entities to which any work identified in Section 30-30
of the Illinois Procurement Code as a subdivision of
construction work may be subcontracted during the performance
of the contract to the extent known at the time of proposal. If
the information is not known at the time of proposal, then the
design-build agreement shall require the identification prior
to a previously unlisted subcontractor commencing work on the
transportation project.
Statements of qualifications and proposals must meet all
material requirements of the request for qualifications or
request for proposals, or else they may be rejected as
non-responsive. The transportation agency shall have the right
to reject any and all statements of qualifications and
proposals.
The private entity's proprietary intellectual property

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contained in the drawings and specifications of any
unsuccessful statement of qualifications or proposal shall
remain the property of the private entity.
The transportation agency shall review the statements of
qualifications and the proposals for compliance with the
performance criteria and evaluation factors.
Statements of qualifications and proposals may be
withdrawn prior to the due date and time for submissions for
any cause. After evaluation begins by the transportation
agency, clear and convincing evidence of error is required for
withdrawal.
(Source: P.A. 100-391, eff. 8-25-17.)
Section 211. The Innovations for Transportation
Infrastructure Act is amended by changing Section 56 as
follows:
(630 ILCS 10/56)
(Section scheduled to be repealed on July 1, 2032)
Sec. 56. Utilization requirements.
(a) Design-builder and Construction Manager/General
Contractor projects shall comply with Section 2-105 of the
Illinois Human Rights Act and all applicable laws and rules
that establish standards and procedures for the utilization of
minority, disadvantaged, and women-owned businesses,
including, but not limited to, the Business Enterprise for

SB0238 - 767 - LRB103 24882 DTM 51215 b
Minorities, Women, Veterans, and Persons with Disabilities
Act. Any Transportation Agency that administers a construction
program, for which federal law or regulations establish
standards and procedures for the utilization of minority-owned
and women-owned businesses and disadvantaged businesses shall
implement a disadvantaged business enterprise program to
include minority-owned and women-owned businesses and
disadvantaged businesses, using the federal standards and
procedures for the establishment of goals and utilization
procedures for the State-funded, as well as the federally
assisted, portions of the program. In cases of federal funding
or federally assisted projects, these goals shall not exceed
those established pursuant to the relevant and applicable
federal statutes or regulations. Each design-build contract
and Construction Manager/General Contractor contract shall
include remedies for a contractor's failure to comply with
commitments made in the proposal or utilization plan,
including, without limitation, failure to cooperate in
providing information regarding compliance or termination of
any subcontractor identified in the utilization plan without
the consent of the Transportation Agency. Such remedies may
include termination of the contract, imposition of a penalty
in an amount equivalent to any profit or cost savings accruing
to the contractor as a result of the violation, withholding of
payments, liquidated damages, disqualification from future
bidding as non-responsible, or any other remedy available to

SB0238 - 768 - LRB103 24882 DTM 51215 b
the Transportation Agency at law or in equity.
(b) For the purposes of this Section, aspirational goals
compliant with the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act and Disadvantaged
Business Enterprise Program shall be established separately
for construction-related professional services and shall be
consistent with the Transportation Agency's methodology for
design-bid-build contracts. As used in this Section,
"construction-related professional services" means those
services within the scope of the practice of architecture,
professional engineering, structural engineering, or land
surveying, as defined in the Illinois Architecture Practice
Act of 1989, the Professional Engineering Practice Act of
1989, the Illinois Professional Land Surveyor Act of 1989, or
the Illinois Structural Engineering Practice Act of 1989.
(Source: P.A. 102-1094, eff. 6-15-22.)
Section 215. The Criminal Code of 2012 is amended by
changing Sections 17-10.2, 17-10.3, 33E-2, and 33E-6 as
follows:
(720 ILCS 5/17-10.2) (was 720 ILCS 5/17-29)
Sec. 17-10.2. Businesses owned by minorities, women
females, veterans, and persons with disabilities; fraudulent
contracts with governmental units.
(a) In this Section:

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"Minority person" means a person who is any of the
following:
(1) American Indian or Alaska Native (a person having
origins in any of the original peoples of North and South
America, including Central America, and who maintains
tribal affiliation or community attachment).
(2) Asian (a person having origins in any of the
original peoples of the Far East, Southeast Asia, or the
Indian subcontinent, including, but not limited to,
Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
the Philippine Islands, Thailand, and Vietnam).
(3) Black or African American (a person having origins
in any of the black racial groups of Africa).
(4) Hispanic or Latino (a person of Cuban, Mexican,
Puerto Rican, South or Central American, or other Spanish
culture or origin, regardless of race).
(5) Native Hawaiian or Other Pacific Islander (a
person having origins in any of the original peoples of
Hawaii, Guam, Samoa, or other Pacific Islands).
"Woman" "Female" means a person who is of the female
gender.
"Person with a disability" means a person who is a
person qualifying as having a disability.
"Veteran" means a person who (i) has been a member of
the armed forces of the United States or, while a citizen
of the United States, was a member of the armed forces of

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allies of the United States in time of hostilities with a
foreign country and (ii) has served under one or more of
the following conditions: (a) the veteran served a total
of at least 6 months; (b) the veteran served for the
duration of hostilities regardless of the length of the
engagement; (c) the veteran was discharged on the basis of
hardship; or (d) the veteran was released from active duty
because of a service connected disability and was
discharged under honorable conditions.
"Disability" means a severe physical or mental
disability that: (1) results from: amputation, arthritis,
autism, blindness, burn injury, cancer, cerebral palsy,
cystic fibrosis, deafness, head injury, heart disease,
hemiplegia, hemophilia, respiratory or pulmonary
dysfunction, an intellectual disability, mental illness,
multiple sclerosis, muscular dystrophy, musculoskeletal
disorders, neurological disorders, including stroke and
epilepsy, paraplegia, quadriplegia and other spinal cord
conditions, sickle cell anemia, specific learning
disabilities, or end stage renal failure disease; and (2)
substantially limits one or more of the person's major
life activities.
"Minority-owned business" means a business which is at
least 51% owned by one or more minority persons, or in the
case of a corporation, at least 51% of the stock in which
is owned by one or more minority persons; and the

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management and daily business operations of which are
controlled by one or more of the minority individuals who
own it.
"Women-owned business" means a business which is at
least 51% owned by one or more women, or, in the case of a
corporation, at least 51% of the stock in which is owned by
one or more women; and the management and daily business
operations of which are controlled by one or more of the
women who own it.
"Business owned by a person with a disability" means a
business that is at least 51% owned by one or more persons
with a disability and the management and daily business
operations of which are controlled by one or more of the
persons with disabilities who own it. A not-for-profit
agency for persons with disabilities that is exempt from
taxation under Section 501 of the Internal Revenue Code of
1986 is also considered a "business owned by a person with
a disability.
"Veteran-owned business" means a business which is at
least 51% owned by one or more veterans, or, in the case of
a corporation, at least 51% of the stock in which is owned
by one or more veterans; and the management and daily
business operations of which are controlled by one or more
of the veterans who own it.
"Minority owned business" means a business concern
that is at least 51% owned by one or more minority persons,

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or in the case of a corporation, at least 51% of the stock
in which is owned by one or more minority persons; and the
management and daily business operations of which are
controlled by one or more of the minority individuals who
own it.
"Female owned business" means a business concern that
is at least 51% owned by one or more females, or, in the
case of a corporation, at least 51% of the stock in which
is owned by one or more females; and the management and
daily business operations of which are controlled by one
or more of the females who own it.
"Business owned by a person with a disability" means a
business concern that is at least 51% owned by one or more
persons with a disability and the management and daily
business operations of which are controlled by one or more
of the persons with disabilities who own it. A
not-for-profit agency for persons with disabilities that
is exempt from taxation under Section 501 of the Internal
Revenue Code of 1986 is also considered a "business owned
by a person with a disability".
"Governmental unit" means the State, a unit of local
government, or school district.
"Armed forces of the United States" means the United
States Army, Navy, Air Force, Marine Corps, Coast Guard,
or service in active duty as defined under 38 U.S.C.
Section 101. Service in the Merchant Marine that

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constitutes active duty under Section 401 of federal
Public Act 95-202 shall also be considered service in the
armed forces for purposes of this Section.
"Time of hostilities with a foreign country" means any
period of time in the past, present, or future during
which a declaration of war by the United States Congress
has been or is in effect or during which an emergency
condition has been or is in effect that is recognized by
the issuance of a Presidential proclamation or a
Presidential executive order and in which the armed forces
expeditionary medal or other campaign service medals are
awarded according to Presidential executive order.
(b) In addition to any other penalties imposed by law or by
an ordinance or resolution of a unit of local government or
school district, any individual or entity that knowingly
obtains, or knowingly assists another to obtain, a contract
with a governmental unit, or a subcontract or written
commitment for a subcontract under a contract with a
governmental unit, by falsely representing that the individual
or entity, or the individual or entity assisted, is a minority
owned business, female owned business, or business owned by a
person with a disability is guilty of a Class 2 felony,
regardless of whether the preference for awarding the contract
to a minority owned business, female owned business, or
business owned by a person with a disability was established
by statute or by local ordinance or resolution.

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(c) In addition to any other penalties authorized by law,
the court shall order that an individual or entity convicted
of a violation of this Section must pay to the governmental
unit that awarded the contract a penalty equal to one and
one-half times the amount of the contract obtained because of
the false representation.
(Source: P.A. 102-465, eff. 1-1-22.)
(720 ILCS 5/17-10.3)
Sec. 17-10.3. Deception relating to certification of
disadvantaged business enterprises.
(a) Fraudulently obtaining or retaining certification. A
person who, in the course of business, fraudulently obtains or
retains certification as a minority-owned business,
women-owned business, service-disabled veteran-owned small
business, or veteran-owned small business, or a business owned
by a person with a disability commits a Class 2 felony.
(b) Willfully making a false statement. A person who, in
the course of business, willfully makes a false statement
whether by affidavit, report or other representation, to an
official or employee of a State agency or the Business
Enterprise Council for Minorities, Women, Veterans, and
Persons with Disabilities for the purpose of influencing the
certification or denial of certification of any business
entity as a minority-owned business, women-owned business,
service-disabled veteran-owned small business, or

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veteran-owned small business, or a business owned by a person
with a disability commits a Class 2 felony.
(c) Willfully obstructing or impeding an official or
employee of any agency in his or her investigation. Any person
who, in the course of business, willfully obstructs or impedes
an official or employee of any State agency or the Business
Enterprise Council for Minorities, Women, Veterans, and
Persons with Disabilities who is investigating the
qualifications of a business entity which has requested
certification as a minority-owned business, women-owned
business, service-disabled veteran-owned small business, or
veteran-owned small business, or a business owned by a person
with a disability commits a Class 2 felony.
(d) Fraudulently obtaining public moneys reserved for
disadvantaged business enterprises. Any person who, in the
course of business, fraudulently obtains public moneys
reserved for, or allocated or available to, minority-owned
businesses, women-owned businesses, service-disabled
veteran-owned small businesses, or veteran-owned small
businesses, or businesses owned by persons with a disability
commits a Class 2 felony.
(e) Definitions. As used in this Article, "minority-owned
business", "women-owned business", "veteran-owned business",
"business owned by a person with a disability", "State agency"
with respect to minority-owned businesses, and women-owned
businesses, veteran-owned businesses, and businesses owned by

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persons with a disability and "certification" with respect to
minority-owned businesses, and women-owned businesses,
veteran-owned businesses, and businesses owned by persons with
a disability shall have the meanings ascribed to them in
Section 2 of the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act. As used in this
Article, "service-disabled veteran-owned small business",
"veteran-owned small business", "State agency" with respect to
service-disabled veteran-owned small businesses and
veteran-owned small businesses, and "certification" with
respect to service-disabled veteran-owned small businesses and
veteran-owned small businesses have the same meanings as in
Section 45-57 of the Illinois Procurement Code.
(Source: P.A. 100-391, eff. 8-25-17; 101-170, eff. 1-1-20;
101-601, eff. 1-1-20.)
(720 ILCS 5/33E-2) (from Ch. 38, par. 33E-2)
Sec. 33E-2. Definitions. In this Act:
(a) "Public contract" means any contract for goods,
services or construction let to any person with or without bid
by any unit of State or local government.
(b) "Unit of State or local government" means the State,
any unit of state government or agency thereof, any county or
municipal government or committee or agency thereof, or any
other entity which is funded by or expends tax dollars or the
proceeds of publicly guaranteed bonds.

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(c) "Change order" means a change in a contract term other
than as specifically provided for in the contract which
authorizes or necessitates any increase or decrease in the
cost of the contract or the time to completion.
(d) "Person" means any individual, firm, partnership,
corporation, joint venture or other entity, but does not
include a unit of State or local government.
(e) "Person employed by any unit of State or local
government" means any employee of a unit of State or local
government and any person defined in subsection (d) who is
authorized by such unit of State or local government to act on
its behalf in relation to any public contract.
(f) "Sheltered market" has the meaning ascribed to it in
Section 8b of the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act; except that, with
respect to State contracts set aside for award to
service-disabled veteran-owned small businesses and
veteran-owned small businesses pursuant to Section 45-57 of
the Illinois Procurement Code, "sheltered market" means
procurements pursuant to that Section.
(g) "Kickback" means any money, fee, commission, credit,
gift, gratuity, thing of value, or compensation of any kind
which is provided, directly or indirectly, to any prime
contractor, prime contractor employee, subcontractor, or
subcontractor employee for the purpose of improperly obtaining
or rewarding favorable treatment in connection with a prime

SB0238 - 778 - LRB103 24882 DTM 51215 b
contract or in connection with a subcontract relating to a
prime contract.
(h) "Prime contractor" means any person who has entered
into a public contract.
(i) "Prime contractor employee" means any officer,
partner, employee, or agent of a prime contractor.
(i-5) "Stringing" means knowingly structuring a contract
or job order to avoid the contract or job order being subject
to competitive bidding requirements.
(j) "Subcontract" means a contract or contractual action
entered into by a prime contractor or subcontractor for the
purpose of obtaining goods or services of any kind under a
prime contract.
(k) "Subcontractor" (1) means any person, other than the
prime contractor, who offers to furnish or furnishes any goods
or services of any kind under a prime contract or a subcontract
entered into in connection with such prime contract; and (2)
includes any person who offers to furnish or furnishes goods
or services to the prime contractor or a higher tier
subcontractor.
(l) "Subcontractor employee" means any officer, partner,
employee, or agent of a subcontractor.
(Source: P.A. 100-391, eff. 8-25-17.)
(720 ILCS 5/33E-6) (from Ch. 38, par. 33E-6)
Sec. 33E-6. Interference with contract submission and

SB0238 - 779 - LRB103 24882 DTM 51215 b
award by public official.
(a) Any person who is an official of or employed by any
unit of State or local government who knowingly conveys,
either directly or indirectly, outside of the publicly
available official invitation to bid, pre-bid conference,
solicitation for contracts procedure or such procedure used in
any sheltered market procurement adopted pursuant to law or
ordinance by that unit of government, to any person any
information concerning the specifications for such contract or
the identity of any particular potential subcontractors, when
inclusion of such information concerning the specifications or
contractors in the bid or offer would influence the likelihood
of acceptance of such bid or offer, commits a Class 4 felony.
It shall not constitute a violation of this subsection to
convey information intended to clarify plans or specifications
regarding a public contract where such disclosure of
information is also made generally available to the public.
(b) Any person who is an official of or employed by any
unit of State or local government who, either directly or
indirectly, knowingly informs a bidder or offeror that the bid
or offer will be accepted or executed only if specified
individuals are included as subcontractors commits a Class 3
felony.
(c) It shall not constitute a violation of subsection (a)
of this Section where any person who is an official of or
employed by any unit of State or local government follows

SB0238 - 780 - LRB103 24882 DTM 51215 b
procedures established (i) by federal, State or local
minority, woman, veteran, or person with a disability or
female owned business enterprise programs or (ii) pursuant to
Section 45-57 of the Illinois Procurement Code.
(d) Any bidder or offeror who is the recipient of
communications from the unit of government which he reasonably
believes to be proscribed by subsections (a) or (b), and fails
to inform either the Attorney General or the State's Attorney
for the county in which the unit of government is located,
commits a Class A misdemeanor.
(e) Any public official who knowingly awards a contract
based on criteria which were not publicly disseminated via the
invitation to bid, when such invitation to bid is required by
law or ordinance, the pre-bid conference, or any solicitation
for contracts procedure or such procedure used in any
sheltered market procurement procedure adopted pursuant to
statute or ordinance, commits a Class 3 felony.
(f) It shall not constitute a violation of subsection (a)
for any person who is an official of or employed by any unit of
State or local government to provide to any person a copy of
the transcript or other summary of any pre-bid conference
where such transcript or summary is also made generally
available to the public.
(Source: P.A. 97-260, eff. 8-5-11.)
Section 220. The Business Corporation Act of 1983 is

SB0238 - 781 - LRB103 24882 DTM 51215 b
amended by changing Sections 14.05 and 14.13 as follows:
(805 ILCS 5/14.05) (from Ch. 32, par. 14.05)
Sec. 14.05. Annual report of domestic or foreign
corporation. Each domestic corporation organized under any
general law or special act of this State authorizing the
corporation to issue shares, other than homestead
associations, building and loan associations, banks and
insurance companies (which includes a syndicate or limited
syndicate regulated under Article V 1/2 of the Illinois
Insurance Code or member of a group of underwriters regulated
under Article V of that Code), and each foreign corporation
(except members of a group of underwriters regulated under
Article V of the Illinois Insurance Code) authorized to
transact business in this State, shall file, within the time
prescribed by this Act, an annual report setting forth:
(a) The name of the corporation.
(b) The address, including street and number, or rural
route number, of its registered office in this State, and
the name of its registered agent at that address.
(c) The address, including street and number, or rural
route number, of its principal office.
(d) The names and respective addresses, including
street and number, or rural route number, of its directors
and officers.
(e) A statement of the aggregate number of shares

SB0238 - 782 - LRB103 24882 DTM 51215 b
which the corporation has authority to issue, itemized by
classes and series, if any, within a class.
(f) A statement of the aggregate number of issued
shares, itemized by classes, and series, if any, within a
class.
(g) A statement, expressed in dollars, of the amount
of paid-in capital of the corporation as defined in this
Act.
(h) Either a statement that (1) all the property of
the corporation is located in this State and all of its
business is transacted at or from places of business in
this State, or the corporation elects to pay the annual
franchise tax on the basis of its entire paid-in capital,
or (2) a statement, expressed in dollars, of the value of
all the property owned by the corporation, wherever
located, and the value of the property located within this
State, and a statement, expressed in dollars, of the gross
amount of business transacted by the corporation and the
gross amount thereof transacted by the corporation at or
from places of business in this State as of the close of
its fiscal year on or immediately preceding the last day
of the third month prior to the anniversary month or in the
case of a corporation which has established an extended
filing month, as of the close of its fiscal year on or
immediately preceding the last day of the third month
prior to the extended filing month; however, in the case

SB0238 - 783 - LRB103 24882 DTM 51215 b
of a domestic corporation that has not completed its first
fiscal year, the statement with respect to property owned
shall be as of the last day of the third month preceding
the anniversary month and the statement with respect to
business transacted shall be furnished for the period
between the date of incorporation and the last day of the
third month preceding the anniversary month. In the case
of a foreign corporation that has not been authorized to
transact business in this State for a period of 12 months
and has not commenced transacting business prior to
obtaining authority, the statement with respect to
property owned shall be as of the last day of the third
month preceding the anniversary month and the statement
with respect to business transacted shall be furnished for
the period between the date of its authorization to
transact business in this State and the last day of the
third month preceding the anniversary month. If the data
referenced in item (2) of this subsection is not
completed, the franchise tax provided for in this Act
shall be computed on the basis of the entire paid-in
capital.
(i) A statement, including the basis therefor, of
status as a "minority-owned business" or as a "women-owned
business" as those terms are defined in the Business
Enterprise for Minorities, Women, Veterans, and Persons
with Disabilities Act.

SB0238 - 784 - LRB103 24882 DTM 51215 b
(j) Additional information as may be necessary or
appropriate in order to enable the Secretary of State to
administer this Act and to verify the proper amount of
fees and franchise taxes payable by the corporation.
(k) A statement of whether the corporation or foreign
corporation has outstanding shares listed on a major
United States stock exchange and is thereby subject to the
reporting requirements of Section 8.12.
(l) For those corporations subject to Section 8.12, a
statement providing the information required under Section
8.12.
(m) For those corporations required to file an
Employer Information Report EEO-1 with the Equal
Employment Opportunity Commission, information that is
substantially similar to the employment data reported
under Section D of the corporation's EEO-1 in a format
approved by the Secretary of State. For each corporation
that submits data under this paragraph, the Secretary of
State shall publish the data on the gender, race, and
ethnicity of each corporation's employees on the Secretary
of State's official website. The Secretary of State shall
publish such information within 90 days of receipt of a
properly filed annual report or as soon thereafter as
practicable.
The annual report shall be made on forms prescribed and
furnished by the Secretary of State, and the information

SB0238 - 785 - LRB103 24882 DTM 51215 b
therein required by paragraphs (a) through (d), both
inclusive, of this Section, shall be given as of the date of
the execution of the annual report and the information therein
required by paragraphs (e), (f), and (g) of this Section shall
be given as of the last day of the third month preceding the
anniversary month, except that the information required by
paragraphs (e), (f), and (g) shall, in the case of a
corporation which has established an extended filing month, be
given in its final transition annual report and each
subsequent annual report as of the close of its fiscal year on
or immediately preceding the last day of the third month prior
to its extended filing month. The information required by
paragraph (m) shall be included in the corporation's annual
report filed on and after January 1, 2023. It shall be executed
by the corporation by its president, a vice-president,
secretary, assistant secretary, treasurer or other officer
duly authorized by the board of directors of the corporation
to execute those reports, and verified by him or her, or, if
the corporation is in the hands of a receiver or trustee, it
shall be executed on behalf of the corporation and verified by
the receiver or trustee.
(Source: P.A. 100-391, eff. 8-25-17; 100-486, eff. 1-1-18;
100-863, eff. 8-14-18; 101-589, eff. 8-27-19; 101-656, eff.
3-23-21.)
(805 ILCS 5/14.13)

SB0238 - 786 - LRB103 24882 DTM 51215 b
Sec. 14.13. Report of interim changes of domestic or
foreign corporations. Any corporation, domestic or foreign,
may report interim changes in the name, address, or both of its
officers and directors, its principal office, or its
minority-owned business status by filing a report under this
Section containing the following information:
(1) The name of the corporation.
(2) The address, including street and number, or rural
route number, of its registered office in this State, and
the name of its registered agent at that address.
(3) The address, including street and number, or rural
route number, of its principal office.
(4) The names and respective addresses, including
street and number, or rural route number, of its directors
and officers.
A statement, including the basis therefor, of status as a
minority-owned business or as a women-owned business as those
terms are defined in the Business Enterprise for Minorities,
Women, Veterans, and Persons with Disabilities Act.
The interim report of changes shall be made on forms
prescribed and furnished by the Secretary of State and shall
be executed by the corporation by its president, a
vice-president, secretary, assistant secretary, treasurer, or
other officer duly authorized by the board of directors of the
corporation to execute those reports, and verified by him or
her, or, if the corporation is in the hands of a receiver or

SB0238 - 787 - LRB103 24882 DTM 51215 b
trustee, it shall be executed on behalf of the corporation and
verified by the receiver or trustee.
(Source: P.A. 102-282, eff. 1-1-22.)
Section 225. The Illinois Clean Energy Jobs and Justice
Fund Act is amended by changing Section 20-10 as follows:
(805 ILCS 155/20-10)
(Section scheduled to be repealed on September 15, 2045)
Sec. 20-10. Definitions. As used in this Act:
"Black, indigenous, and people of color" or "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, Veterans, and Persons with Disabilities Act.
"Board" means the Board of Directors of the Clean Energy
Jobs and Justice Fund.
"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.

SB0238 - 788 - LRB103 24882 DTM 51215 b
"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 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,
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.
(Source: P.A. 102-662, eff. 9-15-21.)
Section 230. The Equal Pay Act of 2003 is amended by
changing Section 11 as follows:
(820 ILCS 112/11)

SB0238 - 789 - LRB103 24882 DTM 51215 b
Sec. 11. Equal pay registration certificate requirements;
application. For the purposes of this Section 11 only,
"business" means any private employer who has 100 or more
employees in the State of Illinois and is required to file an
Annual Employer Information Report EEO-1 with the Equal
Employment Opportunity Commission, but does not include the
State of Illinois or any political subdivision, municipal
corporation, or other governmental unit or agency.
(a) A business must obtain an equal pay registration
certificate from the Department.
(b) Any business subject to the requirements of this
Section that is authorized to transact business in this State
on March 23, 2021 shall submit an application to obtain an
equal pay registration certificate, between March 24, 2022 and
March 23, 2024, and must recertify every 2 years thereafter.
Any business subject to the requirements of this Section that
is authorized to transact business in this State after March
23, 2021 must submit an application to obtain an equal pay
registration certificate within 3 years of commencing business
operations, but not before January 1, 2024, and must recertify
every 2 years thereafter. The Department shall collect contact
information from each business subject to this Section. The
Department shall assign each business a date by which it must
submit an application to obtain an equal pay registration
certificate. The business shall recertify every 2 years at a
date to be determined by the Department. When a business

SB0238 - 790 - LRB103 24882 DTM 51215 b
receives a notice from the Department to recertify for its
equal pay registration certificate, if the business has fewer
than 100 employees, the business must certify in writing to
the Department that it is exempt from this Section. Any new
business that is subject to this Section and authorized to
conduct business in this State, after the effective date of
this amendatory Act of the 102nd General Assembly, shall
submit its contact information to the Department by January 1
of the following year and shall be assigned a date by which it
must submit an application to obtain an equal pay registration
certificate. The Department's failure to assign a business a
registration date does not exempt the business from compliance
with this Section. The failure of the Department to notify a
business of its recertification deadline may be a mitigating
factor when making a determination of a violation of this
Section.
(c) Application.
(1) A business shall apply for an equal pay
registration certificate by paying a $150 filing fee and
submitting wage records and an equal pay compliance
statement to the Director as follows:
(A) Wage Records. Any business that is required to
file an annual Employer Information Report EEO-1 with
the Equal Employment Opportunity Commission must also
submit to the Director a copy of the business's most
recently filed Employer Information Report EEO-1. The

SB0238 - 791 - LRB103 24882 DTM 51215 b
business shall also compile a list of all employees
during the past calendar year, separated by gender and
the race and ethnicity categories as reported in the
business's most recently filed Employer Information
Report EEO-1, and the county in which the employee
works, the date the employee started working for the
business, any other information the Department deems
necessary to determine if pay equity exists among
employees, and report the total wages as defined by
Section 2 of the Illinois Wage Payment and Collection
Act paid to each employee during the past calendar
year, rounded to the nearest $100, to the Director.
(B) Equal Pay Compliance Statement. The business
must submit a statement signed by a corporate officer,
legal counsel, or authorized agent of the business
certifying:
(i) that the business is in compliance with
this Act and other relevant laws, including but
not limited to: Title VII of the Civil Rights Act
of 1964, the Equal Pay Act of 1963, the Illinois
Human Rights Act, and the Equal Wage Act;
(ii) that the average compensation for its
female and minority employees is not consistently
below the average compensation, as determined by
rule by the United States Department of Labor, for
its male and non-minority employees within each of

SB0238 - 792 - LRB103 24882 DTM 51215 b
the major job categories in the Employer
Information Report EEO-1 for which an employee is
expected to perform work, taking into account
factors such as length of service, requirements of
specific jobs, experience, skill, effort,
responsibility, working conditions of the job,
education or training, job location, use of a
collective bargaining agreement, or other
mitigating factors; as used in this subparagraph,
"minority" has the meaning ascribed to that term
in paragraph (1) of subsection (A) of Section 2 of
the Business Enterprise for Minorities, Women,
Veterans, and Persons with Disabilities Act;
(iii) that the business does not restrict
employees of one sex to certain job
classifications, and makes retention and promotion
decisions without regard to sex;
(iv) that wage and benefit disparities are
corrected when identified to ensure compliance
with the Acts cited in item (i);
(v) how often wages and benefits are
evaluated; and
(vi) the approach the business takes in
determining what level of wages and benefits to
pay its employees; acceptable approaches include,
but are not limited to, a wage and salary survey.

SB0238 - 793 - LRB103 24882 DTM 51215 b
(C) Filing fee. The business shall pay to the
Department a filing fee of $150. Proceeds from the
fees collected under this Section shall be deposited
into the Equal Pay Registration Fund, a special fund
created in the State treasury. Moneys in the Fund
shall be appropriated to the Department for the
purposes of this Section.
(2) Receipt of the equal pay compliance application
and statement by the Director does not establish
compliance with the Acts set forth in item (i) of
subparagraph (B) of paragraph (1) of this subsection (c).
(3) A business that has employees in multiple
locations or facilities in Illinois shall submit a single
application to the Department regarding all of its
operations in Illinois.
(d) Issuance or rejection of registration certificate.
After January 1, 2022, the Director must issue an equal pay
registration certificate, or a statement of why the
application was rejected, within 45 calendar days of receipt
of the application. Applicants shall have the opportunity to
cure any deficiencies in its application that led to the
rejection, and re-submit the revised application to the
Department within 30 calendar days of receiving a rejection.
Applicants shall have the ability to appeal rejected
applications. An application may be rejected only if it does
not comply with the requirements of subsection (c), or the

SB0238 - 794 - LRB103 24882 DTM 51215 b
business is otherwise found to be in violation of this Act. The
receipt of an application by the Department, or the issuance
of a registration certificate by the Department, shall not
establish compliance with the Equal Pay Act of 2003 as to all
Sections except Section 11. The issuance of a registration
certificate shall not be a defense against any Equal Pay Act
violation found by the Department, nor a basis for mitigation
of damages.
(e) Revocation of registration certificate. An equal pay
registration certificate for a business may be suspended or
revoked by the Director when the business fails to make a good
faith effort to comply with the Acts identified in item (i) of
subparagraph (B) of paragraph (1) of subsection (c), fails to
make a good faith effort to comply with this Section, or has
multiple violations of this Section or the Acts identified in
item (i) of subparagraph (B) of paragraph (1) of subsection
(c). Prior to suspending or revoking a registration
certificate, the Director must first have sought to conciliate
with the business regarding wages and benefits due to
employees.
Consistent with Section 25, prior to or in connection with
the suspension or revocation of an equal pay registration
certificate, the Director, or his or her authorized
representative, may interview workers, administer oaths, take
or cause to be taken the depositions of witnesses, and require
by subpoena the attendance and testimony of witnesses, and the

SB0238 - 795 - LRB103 24882 DTM 51215 b
production of personnel and compensation information relative
to the matter under investigation, hearing or a
department-initiated audit.
Neither the Department nor the Director shall be held
liable for good faith errors in issuing, denying, suspending
or revoking certificates.
(f) Administrative review. A business may obtain an
administrative hearing in accordance with the Illinois
Administrative Procedure Act before the suspension or
revocation of its certificate or imposition of civil penalties
as provided by subsection (i) is effective by filing a written
request for hearing within 20 calendar days after service of
notice by the Director.
(g) Technical assistance. The Director must provide
technical assistance to any business that requests assistance
regarding this Section.
(h) Access to data.
(1) Any individually identifiable information
submitted to the Director within or related to an equal
pay registration application or otherwise provided by an
employer in its equal pay compliance statement under
subsection (c) shall be considered confidential
information and not subject to disclosure pursuant to the
Illinois Freedom of Information Act. As used in this
Section, "individually identifiable information" means
data submitted pursuant to this Section that is associated

SB0238 - 796 - LRB103 24882 DTM 51215 b
with a specific person or business. Aggregate data or
reports that are reasonably calculated to prevent the
association of any data with any individual business or
person are not confidential information. Aggregate data
shall include the job category and the average hourly wage
by county for each gender, race, and ethnicity category on
the registration certificate applications. The Department
of Labor may compile aggregate data from registration
certificate applications.
(2) The Director's decision to issue, not issue,
revoke, or suspend an equal pay registration certificate
is public information.
(3) Notwithstanding this subsection (h), a current
employee of a covered business may request anonymized data
regarding their job classification or title and the pay
for that classification. No individually identifiable
information may be provided to an employee making a
request under this paragraph.
(4) Notwithstanding this subsection (h), the
Department may share data and identifiable information
with the Department of Human Rights, pursuant to its
enforcement of Article 2 of the Illinois Human Rights Act,
or the Office of the Attorney General, pursuant to its
enforcement of Section 10-104 of the Illinois Human Rights
Act.
(5) Any Department employee who willfully and

SB0238 - 797 - LRB103 24882 DTM 51215 b
knowingly divulges, except in accordance with a proper
judicial order or otherwise provided by law, confidential
information received by the Department from any business
pursuant to this Act shall be deemed to have violated the
State Officials and Employees Ethics Act and be subject to
the penalties established under subsections (e) and (f) of
Section 50-5 of that Act after investigation and
opportunity for hearing before the Executive Ethics
Commission in accordance with Section 20-50 of that Act.
(i) Penalty. Falsification or misrepresentation of
information on an application submitted to the Department
shall constitute a violation of this Act and the Department
may seek to suspend or revoke an equal pay registration
certificate or impose civil penalties as provided under
subsection (c) of Section 30.
(Source: P.A. 101-656, eff. 3-23-21; 102-36, eff. 6-25-21;
102-705, eff. 4-22-22.)
Section 999. Effective date. This Act takes effect upon
becoming law.
SB0238 - 798 - LRB103 24882 DTM 51215 b
INDEX
Statutes amended in order of appearance
15 ILCS 205/9
15 ILCS 305/19
15 ILCS 405/23.9
15 ILCS 405/23.10
15 ILCS 505/30
15 ILCS 520/1.1 from Ch. 130, par. 20.1
20 ILCS 605/605-503
20 ILCS 605/605-1020
20 ILCS 627/45
20 ILCS 655/4 from Ch. 67 1/2, par. 604
20 ILCS 686/10
20 ILCS 730/5-5
20 ILCS 730/5-45
20 ILCS 730/5-55
20 ILCS 1605/9.1
20 ILCS 2705/2705-585
20 ILCS 3105/16 from Ch. 127, par. 783b
20 ILCS 3501/835-10
20 ILCS 3501/850-15
20 ILCS 3855/1-10
20 ILCS 3855/1-75
20 ILCS 3860/20
20 ILCS 3948/20
SB0238 - 799 - LRB103 24882 DTM 51215 b
20 ILCS 3975/4.5
30 ILCS 5/2-16
30 ILCS 105/45
30 ILCS 330/8 from Ch. 127, par. 658
30 ILCS 330/15.5
30 ILCS 425/5 from Ch. 127, par. 2805
30 ILCS 425/8.3
30 ILCS 500/15-25
30 ILCS 500/20-15
30 ILCS 500/20-60
30 ILCS 500/30-30
30 ILCS 500/45-45
30 ILCS 500/45-58 new
30 ILCS 500/45-65
30 ILCS 500/45-57 rep.
30 ILCS 537/5
30 ILCS 537/15
30 ILCS 537/30
30 ILCS 537/46
30 ILCS 558/25-5
30 ILCS 559/20-10
30 ILCS 559/20-20
30 ILCS 571/25
30 ILCS 571/37
30 ILCS 574/40-10
30 ILCS 575/0.01 from Ch. 127, par. 132.600
SB0238 - 800 - LRB103 24882 DTM 51215 b
30 ILCS 575/1 from Ch. 127, par. 132.601
30 ILCS 575/2
30 ILCS 575/4 from Ch. 127, par. 132.604
30 ILCS 575/4f
30 ILCS 575/5 from Ch. 127, par. 132.605
30 ILCS 575/6 from Ch. 127, par. 132.606
30 ILCS 575/6a from Ch. 127, par. 132.606a
30 ILCS 575/7 from Ch. 127, par. 132.607
30 ILCS 575/8 from Ch. 127, par. 132.608
30 ILCS 575/8a from Ch. 127, par. 132.608a
30 ILCS 575/8b from Ch. 127, par. 132.608b
30 ILCS 575/8f
30 ILCS 575/8g
30 ILCS 575/8h
35 ILCS 5/220
35 ILCS 16/30
35 ILCS 16/45
35 ILCS 16/46
35 ILCS 17/10-30
35 ILCS 17/10-50
35 ILCS 45/110-10
35 ILCS 200/18-50.2
40 ILCS 5/1-109.1 from Ch. 108 1/2, par. 1-109.1
40 ILCS 5/1-113.21
40 ILCS 5/1-113.22
55 ILCS 5/5-1134
SB0238 - 801 - LRB103 24882 DTM 51215 b
55 ILCS 5/5-45015
55 ILCS 5/5-45025
55 ILCS 5/5-45045
65 ILCS 115/10-5.3
70 ILCS 210/10.2
70 ILCS 210/23.1 from Ch. 85, par. 1243.1
70 ILCS 860/15
70 ILCS 860/25
70 ILCS 860/45
70 ILCS 3205/9 from Ch. 85, par. 6009
70 ILCS 3210/40
70 ILCS 3605/12c
105 ILCS 5/10-20.44
110 ILCS 62/3
110 ILCS 62/5-10
110 ILCS 675/20-115
220 ILCS 5/8-103B
220 ILCS 5/9-220 from Ch. 111 2/3, par. 9-220
230 ILCS 5/12.1 from Ch. 8, par. 37-12.1
230 ILCS 5/12.2
230 ILCS 10/4 from Ch. 120, par. 2404
230 ILCS 10/7 from Ch. 120, par. 2407
230 ILCS 10/7.6
230 ILCS 10/7.14
230 ILCS 10/11.2
230 ILCS 45/25-30
SB0238 - 802 - LRB103 24882 DTM 51215 b