SB1529 Engrossed LRB101 08496 JRG 53573 b
1		AN ACT concerning State government.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Illinois Power Agency Act is amended by
5		changing Section 1-75 as follows:
6		(20 ILCS 3855/1-75)
7		Sec. 1-75. Planning and Procurement Bureau. The Planning
8		and Procurement Bureau has the following duties and
9		responsibilities:
10		(a) The Planning and Procurement Bureau shall each year,
11		beginning in 2008, develop procurement plans and conduct
12		competitive procurement processes in accordance with the
13		requirements of Section 16-111.5 of the Public Utilities Act
14		for the eligible retail customers of electric utilities that on
15		December 31, 2005 provided electric service to at least 100,000
16		customers in Illinois. Beginning with the delivery year
17		commencing on June 1, 2017, the Planning and Procurement Bureau
18		shall develop plans and processes for the procurement of zero
19		emission credits from zero emission facilities in accordance
20		with the requirements of subsection (d-5) of this Section. The
21		Planning and Procurement Bureau shall also develop procurement
22		plans and conduct competitive procurement processes in
23		accordance with the requirements of Section 16-111.5 of the

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1		Public Utilities Act for the eligible retail customers of small
2		multi-jurisdictional electric utilities that (i) on December
3		31, 2005 served less than 100,000 customers in Illinois and
4		(ii) request a procurement plan for their Illinois
5		jurisdictional load. This Section shall not apply to a small
6		multi-jurisdictional utility until such time as a small
7		multi-jurisdictional utility requests the Agency to prepare a
8		procurement plan for their Illinois jurisdictional load. For
9		the purposes of this Section, the term "eligible retail
10		customers" has the same definition as found in Section
11		16-111.5(a) of the Public Utilities Act.
12		Beginning with the plan or plans to be implemented in the
13		2017 delivery year, the Agency shall no longer include the
14		procurement of renewable energy resources in the annual
15		procurement plans required by this subsection (a), except as
16		provided in subsection (q) of Section 16-111.5 of the Public
17		Utilities Act, and shall instead develop a long-term renewable
18		resources procurement plan in accordance with subsection (c) of
19		this Section and Section 16-111.5 of the Public Utilities Act.
20		(1) The Agency shall each year, beginning in 2008, as
21		needed, issue a request for qualifications for experts or
22		expert consulting firms to develop the procurement plans in
23		accordance with Section 16-111.5 of the Public Utilities
24		Act. In order to qualify an expert or expert consulting
25		firm must have:
26		(A) direct previous experience assembling

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1		large-scale power supply plans or portfolios for
2		end-use customers;
3		(B) an advanced degree in economics, mathematics,
4		engineering, risk management, or a related area of
5		study;
6		(C) 10 years of experience in the electricity
7		sector, including managing supply risk;
8		(D) expertise in wholesale electricity market
9		rules, including those established by the Federal
10		Energy Regulatory Commission and regional transmission
11		organizations;
12		(E) expertise in credit protocols and familiarity
13		with contract protocols;
14		(F) adequate resources to perform and fulfill the
15		required functions and responsibilities; and
16		(G) the absence of a conflict of interest and
17		inappropriate bias for or against potential bidders or
18		the affected electric utilities.
19		(2) The Agency shall each year, as needed, issue a
20		request for qualifications for a procurement administrator
21		to conduct the competitive procurement processes in
22		accordance with Section 16-111.5 of the Public Utilities
23		Act. In order to qualify an expert or expert consulting
24		firm must have:
25		(A) direct previous experience administering a
26		large-scale competitive procurement process;

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1		(B) an advanced degree in economics, mathematics,
2		engineering, or a related area of study;
3		(C) 10 years of experience in the electricity
4		sector, including risk management experience;
5		(D) expertise in wholesale electricity market
6		rules, including those established by the Federal
7		Energy Regulatory Commission and regional transmission
8		organizations;
9		(E) expertise in credit and contract protocols;
10		(F) adequate resources to perform and fulfill the
11		required functions and responsibilities; and
12		(G) the absence of a conflict of interest and
13		inappropriate bias for or against potential bidders or
14		the affected electric utilities.
15		(3) The Agency shall provide affected utilities and
16		other interested parties with the lists of qualified
17		experts or expert consulting firms identified through the
18		request for qualifications processes that are under
19		consideration to develop the procurement plans and to serve
20		as the procurement administrator. The Agency shall also
21		provide each qualified expert's or expert consulting
22		firm's response to the request for qualifications. All
23		information provided under this subparagraph shall also be
24		provided to the Commission. The Agency may provide by rule
25		for fees associated with supplying the information to
26		utilities and other interested parties. These parties

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1		shall, within 5 business days, notify the Agency in writing
2		if they object to any experts or expert consulting firms on
3		the lists. Objections shall be based on:
4		(A) failure to satisfy qualification criteria;
5		(B) identification of a conflict of interest; or
6		(C) evidence of inappropriate bias for or against
7		potential bidders or the affected utilities.
8		The Agency shall remove experts or expert consulting
9		firms from the lists within 10 days if there is a
10		reasonable basis for an objection and provide the updated
11		lists to the affected utilities and other interested
12		parties. If the Agency fails to remove an expert or expert
13		consulting firm from a list, an objecting party may seek
14		review by the Commission within 5 days thereafter by filing
15		a petition, and the Commission shall render a ruling on the
16		petition within 10 days. There is no right of appeal of the
17		Commission's ruling.
18		(4) The Agency shall issue requests for proposals to
19		the qualified experts or expert consulting firms to develop
20		a procurement plan for the affected utilities and to serve
21		as procurement administrator.
22		(5) The Agency shall select an expert or expert
23		consulting firm to develop procurement plans based on the
24		proposals submitted and shall award contracts of up to 5
25		years to those selected.
26		(6) The Agency shall select an expert or expert

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1		consulting firm, with approval of the Commission, to serve
2		as procurement administrator based on the proposals
3		submitted. If the Commission rejects, within 5 days, the
4		Agency's selection, the Agency shall submit another
5		recommendation within 3 days based on the proposals
6		submitted. The Agency shall award a 5-year contract to the
7		expert or expert consulting firm so selected with
8		Commission approval.
9		(b) The experts or expert consulting firms retained by the
10		Agency shall, as appropriate, prepare procurement plans, and
11		conduct a competitive procurement process as prescribed in
12		Section 16-111.5 of the Public Utilities Act, to ensure
13		adequate, reliable, affordable, efficient, and environmentally
14		sustainable electric service at the lowest total cost over
15		time, taking into account any benefits of price stability, for
16		eligible retail customers of electric utilities that on
17		December 31, 2005 provided electric service to at least 100,000
18		customers in the State of Illinois, and for eligible Illinois
19		retail customers of small multi-jurisdictional electric
20		utilities that (i) on December 31, 2005 served less than
21		100,000 customers in Illinois and (ii) request a procurement
22		plan for their Illinois jurisdictional load.
23		(c) Renewable portfolio standard.
24		(1)(A) The Agency shall develop a long-term renewable
25		resources procurement plan that shall include procurement
26		programs and competitive procurement events necessary to

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1		meet the goals set forth in this subsection (c). The
2		initial long-term renewable resources procurement plan
3		shall be released for comment no later than 160 days after
4		June 1, 2017 (the effective date of Public Act 99-906). The
5		Agency shall review, and may revise on an expedited basis,
6		the long-term renewable resources procurement plan at
7		least every 2 years, which shall be conducted in
8		conjunction with the procurement plan under Section
9		16-111.5 of the Public Utilities Act to the extent
10		practicable to minimize administrative expense. The
11		long-term renewable resources procurement plans shall be
12		subject to review and approval by the Commission under
13		Section 16-111.5 of the Public Utilities Act.
14		(B) Subject to subparagraph (F) of this paragraph (1),
15		the long-term renewable resources procurement plan shall
16		include the goals for procurement of renewable energy
17		credits to meet at least the following overall percentages:
18		13% by the 2017 delivery year; increasing by at least 1.5%
19		each delivery year thereafter to at least 25% by the 2025
20		delivery year; and continuing at no less than 25% for each
21		delivery year thereafter. In the event of a conflict
22		between these goals and the new wind and new photovoltaic
23		procurement requirements described in items (i) through
24		(iii) of subparagraph (C) of this paragraph (1), the
25		long-term plan shall prioritize compliance with the new
26		wind and new photovoltaic procurement requirements

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1		described in items (i) through (iii) of subparagraph (C) of
2		this paragraph (1) over the annual percentage targets
3		described in this subparagraph (B).
4		For the delivery year beginning June 1, 2017, the
5		procurement plan shall include cost-effective renewable
6		energy resources equal to at least 13% of each utility's
7		load for eligible retail customers and 13% of the
8		applicable portion of each utility's load for retail
9		customers who are not eligible retail customers, which
10		applicable portion shall equal 50% of the utility's load
11		for retail customers who are not eligible retail customers
12		on February 28, 2017.
13		For the delivery year beginning June 1, 2018, the
14		procurement plan shall include cost-effective renewable
15		energy resources equal to at least 14.5% of each utility's
16		load for eligible retail customers and 14.5% of the
17		applicable portion of each utility's load for retail
18		customers who are not eligible retail customers, which
19		applicable portion shall equal 75% of the utility's load
20		for retail customers who are not eligible retail customers
21		on February 28, 2017.
22		For the delivery year beginning June 1, 2019, and for
23		each year thereafter, the procurement plans shall include
24		cost-effective renewable energy resources equal to a
25		minimum percentage of each utility's load for all retail
26		customers as follows: 16% by June 1, 2019; increasing by

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1		1.5% each year thereafter to 25% by June 1, 2025; and 25%
2		by June 1, 2026 and each year thereafter.
3		For each delivery year, the Agency shall first
4		recognize each utility's obligations for that delivery
5		year under existing contracts. Any renewable energy
6		credits under existing contracts, including renewable
7		energy credits as part of renewable energy resources, shall
8		be used to meet the goals set forth in this subsection (c)
9		for the delivery year.
10		(C) Of the renewable energy credits procured under this
11		subsection (c), at least 75% shall come from wind and
12		photovoltaic projects. The long-term renewable resources
13		procurement plan described in subparagraph (A) of this
14		paragraph (1) shall include the procurement of renewable
15		energy credits in amounts equal to at least the following:
16		(i) By the end of the 2020 delivery year:
17		At least 2,000,000 renewable energy credits
18		for each delivery year shall come from new wind
19		projects; and
20		At least 2,000,000 renewable energy credits
21		for each delivery year shall come from new
22		photovoltaic projects; of that amount, to the
23		extent possible, the Agency shall procure: at
24		least 50% from solar photovoltaic projects using
25		the program outlined in subparagraph (K) of this
26		paragraph (1) from distributed renewable energy

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1		generation devices or community renewable
2		generation projects; at least 40% from
3		utility-scale solar projects; at least 2% from
4		brownfield site photovoltaic projects that are not
5		community renewable generation projects; and the
6		remainder shall be determined through the
7		long-term planning process described in
8		subparagraph (A) of this paragraph (1).
9		(ii) By the end of the 2025 delivery year:
10		At least 3,000,000 renewable energy credits
11		for each delivery year shall come from new wind
12		projects; and
13		At least 3,000,000 renewable energy credits
14		for each delivery year shall come from new
15		photovoltaic projects; of that amount, to the
16		extent possible, the Agency shall procure: at
17		least 50% from solar photovoltaic projects using
18		the program outlined in subparagraph (K) of this
19		paragraph (1) from distributed renewable energy
20		devices or community renewable generation
21		projects; at least 40% from utility-scale solar
22		projects; at least 2% from brownfield site
23		photovoltaic projects that are not community
24		renewable generation projects; and the remainder
25		shall be determined through the long-term planning
26		process described in subparagraph (A) of this

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1		paragraph (1).
2		(iii) By the end of the 2030 delivery year:
3		At least 4,000,000 renewable energy credits
4		for each delivery year shall come from new wind
5		projects; and
6		At least 4,000,000 renewable energy credits
7		for each delivery year shall come from new
8		photovoltaic projects; of that amount, to the
9		extent possible, the Agency shall procure: at
10		least 50% from solar photovoltaic projects using
11		the program outlined in subparagraph (K) of this
12		paragraph (1) from distributed renewable energy
13		devices or community renewable generation
14		projects; at least 40% from utility-scale solar
15		projects; at least 2% from brownfield site
16		photovoltaic projects that are not community
17		renewable generation projects; and the remainder
18		shall be determined through the long-term planning
19		process described in subparagraph (A) of this
20		paragraph (1).
21		For purposes of this Section:
22		"New wind projects" means wind renewable
23		energy facilities that are energized after June 1,
24		2017 for the delivery year commencing June 1, 2017
25		or within 3 years after the date the Commission
26		approves contracts for subsequent delivery years.

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1		"New photovoltaic projects" means photovoltaic
2		renewable energy facilities that are energized
3		after June 1, 2017. Photovoltaic projects
4		developed under Section 1-56 of this Act shall not
5		apply towards the new photovoltaic project
6		requirements in this subparagraph (C).
7		(D) Renewable energy credits shall be cost effective.
8		For purposes of this subsection (c), "cost effective" means
9		that the costs of procuring renewable energy resources do
10		not cause the limit stated in subparagraph (E) of this
11		paragraph (1) to be exceeded and, for renewable energy
12		credits procured through a competitive procurement event,
13		do not exceed benchmarks based on market prices for like
14		products in the region. For purposes of this subsection
15		(c), "like products" means contracts for renewable energy
16		credits from the same or substantially similar technology,
17		same or substantially similar vintage (new or existing),
18		the same or substantially similar quantity, and the same or
19		substantially similar contract length and structure.
20		Benchmarks shall be developed by the procurement
21		administrator, in consultation with the Commission staff,
22		Agency staff, and the procurement monitor and shall be
23		subject to Commission review and approval. If price
24		benchmarks for like products in the region are not
25		available, the procurement administrator shall establish
26		price benchmarks based on publicly available data on

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1		regional technology costs and expected current and future
2		regional energy prices. The benchmarks in this Section
3		shall not be used to curtail or otherwise reduce
4		contractual obligations entered into by or through the
5		Agency prior to June 1, 2017 (the effective date of Public
6		Act 99-906).
7		(E) For purposes of this subsection (c), the required
8		procurement of cost-effective renewable energy resources
9		for a particular year commencing prior to June 1, 2017
10		shall be measured as a percentage of the actual amount of
11		electricity (megawatt-hours) supplied by the electric
12		utility to eligible retail customers in the delivery year
13		ending immediately prior to the procurement, and, for
14		delivery years commencing on and after June 1, 2017, the
15		required procurement of cost-effective renewable energy
16		resources for a particular year shall be measured as a
17		percentage of the actual amount of electricity
18		(megawatt-hours) delivered by the electric utility in the
19		delivery year ending immediately prior to the procurement,
20		to all retail customers in its service territory. For
21		purposes of this subsection (c), the amount paid per
22		kilowatthour means the total amount paid for electric
23		service expressed on a per kilowatthour basis. For purposes
24		of this subsection (c), the total amount paid for electric
25		service includes without limitation amounts paid for
26		supply, transmission, distribution, surcharges, and add-on

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1		taxes.
2		Notwithstanding the requirements of this subsection
3		(c), the total of renewable energy resources procured under
4		the procurement plan for any single year shall be subject
5		to the limitations of this subparagraph (E). Such
6		procurement shall be reduced for all retail customers based
7		on the amount necessary to limit the annual estimated
8		average net increase due to the costs of these resources
9		included in the amounts paid by eligible retail customers
10		in connection with electric service to no more than the
11		greater of 2.015% of the amount paid per kilowatthour by
12		those customers during the year ending May 31, 2007 or the
13		incremental amount per kilowatthour paid for these
14		resources in 2011. To arrive at a maximum dollar amount of
15		renewable energy resources to be procured for the
16		particular delivery year, the resulting per kilowatthour
17		amount shall be applied to the actual amount of
18		kilowatthours of electricity delivered, or applicable
19		portion of such amount as specified in paragraph (1) of
20		this subsection (c), as applicable, by the electric utility
21		in the delivery year immediately prior to the procurement
22		to all retail customers in its service territory. The
23		calculations required by this subparagraph (E) shall be
24		made only once for each delivery year at the time that the
25		renewable energy resources are procured. Once the
26		determination as to the amount of renewable energy

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1		resources to procure is made based on the calculations set
2		forth in this subparagraph (E) and the contracts procuring
3		those amounts are executed, no subsequent rate impact
4		determinations shall be made and no adjustments to those
5		contract amounts shall be allowed. All costs incurred under
6		such contracts shall be fully recoverable by the electric
7		utility as provided in this Section.
8		(F) If the limitation on the amount of renewable energy
9		resources procured in subparagraph (E) of this paragraph
10		(1) prevents the Agency from meeting all of the goals in
11		this subsection (c), the Agency's long-term plan shall
12		prioritize compliance with the requirements of this
13		subsection (c) regarding renewable energy credits in the
14		following order:
15		(i) renewable energy credits under existing
16		contractual obligations;
17		(i-5) funding for the Illinois Solar for All
18		Program, as described in subparagraph (O) of this
19		paragraph (1);
20		(ii) renewable energy credits necessary to comply
21		with the new wind and new photovoltaic procurement
22		requirements described in items (i) through (iii) of
23		subparagraph (C) of this paragraph (1); and
24		(iii) renewable energy credits necessary to meet
25		the remaining requirements of this subsection (c).
26		(G) The following provisions shall apply to the

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1		Agency's procurement of renewable energy credits under
2		this subsection (c):
3		(i) Notwithstanding whether a long-term renewable
4		resources procurement plan has been approved, the
5		Agency shall conduct an initial forward procurement
6		for renewable energy credits from new utility-scale
7		wind projects within 160 days after June 1, 2017 (the
8		effective date of Public Act 99-906). For the purposes
9		of this initial forward procurement, the Agency shall
10		solicit 15-year contracts for delivery of 1,000,000
11		renewable energy credits delivered annually from new
12		utility-scale wind projects to begin delivery on June
13		1, 2019, if available, but not later than June 1, 2021,
14		unless the project has delays in the establishment of
15		an operating interconnection with the applicable
16		transmission or distribution system as a result of the
17		actions or inactions of the transmission or
18		distribution provider, or other causes for force
19		majeure as outlined in the procurement contract, in
20		which case, not later than June 1, 2022. Payments to
21		suppliers of renewable energy credits shall commence
22		upon delivery. Renewable energy credits procured under
23		this initial procurement shall be included in the
24		Agency's long-term plan and shall apply to all
25		renewable energy goals in this subsection (c).
26		(ii) Notwithstanding whether a long-term renewable

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1		resources procurement plan has been approved, the
2		Agency shall conduct an initial forward procurement
3		for renewable energy credits from new utility-scale
4		solar projects and brownfield site photovoltaic
5		projects within one year after June 1, 2017 (the
6		effective date of Public Act 99-906). For the purposes
7		of this initial forward procurement, the Agency shall
8		solicit 15-year contracts for delivery of 1,000,000
9		renewable energy credits delivered annually from new
10		utility-scale solar projects and brownfield site
11		photovoltaic projects to begin delivery on June 1,
12		2019, if available, but not later than June 1, 2021,
13		unless the project has delays in the establishment of
14		an operating interconnection with the applicable
15		transmission or distribution system as a result of the
16		actions or inactions of the transmission or
17		distribution provider, or other causes for force
18		majeure as outlined in the procurement contract, in
19		which case, not later than June 1, 2022. The Agency may
20		structure this initial procurement in one or more
21		discrete procurement events. Payments to suppliers of
22		renewable energy credits shall commence upon delivery.
23		Renewable energy credits procured under this initial
24		procurement shall be included in the Agency's
25		long-term plan and shall apply to all renewable energy
26		goals in this subsection (c).

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1		(iii) Subsequent forward procurements for
2		utility-scale wind projects shall solicit at least
3		1,000,000 renewable energy credits delivered annually
4		per procurement event and shall be planned, scheduled,
5		and designed such that the cumulative amount of
6		renewable energy credits delivered from all new wind
7		projects in each delivery year shall not exceed the
8		Agency's projection of the cumulative amount of
9		renewable energy credits that will be delivered from
10		all new photovoltaic projects, including utility-scale
11		and distributed photovoltaic devices, in the same
12		delivery year at the time scheduled for wind contract
13		delivery.
14		(iv) If, at any time after the time set for
15		delivery of renewable energy credits pursuant to the
16		initial procurements in items (i) and (ii) of this
17		subparagraph (G), the cumulative amount of renewable
18		energy credits projected to be delivered from all new
19		wind projects in a given delivery year exceeds the
20		cumulative amount of renewable energy credits
21		projected to be delivered from all new photovoltaic
22		projects in that delivery year by 200,000 or more
23		renewable energy credits, then the Agency shall within
24		60 days adjust the procurement programs in the
25		long-term renewable resources procurement plan to
26		ensure that the projected cumulative amount of

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1		renewable energy credits to be delivered from all new
2		wind projects does not exceed the projected cumulative
3		amount of renewable energy credits to be delivered from
4		all new photovoltaic projects by 200,000 or more
5		renewable energy credits, provided that nothing in
6		this Section shall preclude the projected cumulative
7		amount of renewable energy credits to be delivered from
8		all new photovoltaic projects from exceeding the
9		projected cumulative amount of renewable energy
10		credits to be delivered from all new wind projects in
11		each delivery year and provided further that nothing in
12		this item (iv) shall require the curtailment of an
13		executed contract. The Agency shall update, on a
14		quarterly basis, its projection of the renewable
15		energy credits to be delivered from all projects in
16		each delivery year. Notwithstanding anything to the
17		contrary, the Agency may adjust the timing of
18		procurement events conducted under this subparagraph
19		(G). The long-term renewable resources procurement
20		plan shall set forth the process by which the
21		adjustments may be made.
22		(v) All procurements under this subparagraph (G)
23		shall comply with the geographic requirements in
24		subparagraph (I) of this paragraph (1) and shall follow
25		the procurement processes and procedures described in
26		this Section and Section 16-111.5 of the Public

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1		Utilities Act to the extent practicable, and these
2		processes and procedures may be expedited to
3		accommodate the schedule established by this
4		subparagraph (G).
5		(H) The procurement of renewable energy resources for a
6		given delivery year shall be reduced as described in this
7		subparagraph (H) if an alternative retail electric
8		supplier meets the requirements described in this
9		subparagraph (H).
10		(i) Within 45 days after June 1, 2017 (the
11		effective date of Public Act 99-906), an alternative
12		retail electric supplier or its successor shall submit
13		an informational filing to the Illinois Commerce
14		Commission certifying that, as of December 31, 2015,
15		the alternative retail electric supplier owned one or
16		more electric generating facilities that generates
17		renewable energy resources as defined in Section 1-10
18		of this Act, provided that such facilities are not
19		powered by wind or photovoltaics, and the facilities
20		generate one renewable energy credit for each
21		megawatthour of energy produced from the facility.
22		The informational filing shall identify each
23		facility that was eligible to satisfy the alternative
24		retail electric supplier's obligations under Section
25		16-115D of the Public Utilities Act as described in
26		this item (i).

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1		(ii) For a given delivery year, the alternative
2		retail electric supplier may elect to supply its retail
3		customers with renewable energy credits from the
4		facility or facilities described in item (i) of this
5		subparagraph (H) that continue to be owned by the
6		alternative retail electric supplier.
7		(iii) The alternative retail electric supplier
8		shall notify the Agency and the applicable utility, no
9		later than February 28 of the year preceding the
10		applicable delivery year or 15 days after June 1, 2017
11		(the effective date of Public Act 99-906), whichever is
12		later, of its election under item (ii) of this
13		subparagraph (H) to supply renewable energy credits to
14		retail customers of the utility. Such election shall
15		identify the amount of renewable energy credits to be
16		supplied by the alternative retail electric supplier
17		to the utility's retail customers and the source of the
18		renewable energy credits identified in the
19		informational filing as described in item (i) of this
20		subparagraph (H), subject to the following
21		limitations:
22		For the delivery year beginning June 1, 2018,
23		the maximum amount of renewable energy credits to
24		be supplied by an alternative retail electric
25		supplier under this subparagraph (H) shall be 68%
26		multiplied by 25% multiplied by 14.5% multiplied

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1		by the amount of metered electricity
2		(megawatt-hours) delivered by the alternative
3		retail electric supplier to Illinois retail
4		customers during the delivery year ending May 31,
5		2016.
6		For delivery years beginning June 1, 2019 and
7		each year thereafter, the maximum amount of
8		renewable energy credits to be supplied by an
9		alternative retail electric supplier under this
10		subparagraph (H) shall be 68% multiplied by 50%
11		multiplied by 16% multiplied by the amount of
12		metered electricity (megawatt-hours) delivered by
13		the alternative retail electric supplier to
14		Illinois retail customers during the delivery year
15		ending May 31, 2016, provided that the 16% value
16		shall increase by 1.5% each delivery year
17		thereafter to 25% by the delivery year beginning
18		June 1, 2025, and thereafter the 25% value shall
19		apply to each delivery year.
20		For each delivery year, the total amount of
21		renewable energy credits supplied by all alternative
22		retail electric suppliers under this subparagraph (H)
23		shall not exceed 9% of the Illinois target renewable
24		energy credit quantity. The Illinois target renewable
25		energy credit quantity for the delivery year beginning
26		June 1, 2018 is 14.5% multiplied by the total amount of

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1		metered electricity (megawatt-hours) delivered in the
2		delivery year immediately preceding that delivery
3		year, provided that the 14.5% shall increase by 1.5%
4		each delivery year thereafter to 25% by the delivery
5		year beginning June 1, 2025, and thereafter the 25%
6		value shall apply to each delivery year.
7		If the requirements set forth in items (i) through
8		(iii) of this subparagraph (H) are met, the charges
9		that would otherwise be applicable to the retail
10		customers of the alternative retail electric supplier
11		under paragraph (6) of this subsection (c) for the
12		applicable delivery year shall be reduced by the ratio
13		of the quantity of renewable energy credits supplied by
14		the alternative retail electric supplier compared to
15		that supplier's target renewable energy credit
16		quantity. The supplier's target renewable energy
17		credit quantity for the delivery year beginning June 1,
18		2018 is 14.5% multiplied by the total amount of metered
19		electricity (megawatt-hours) delivered by the
20		alternative retail supplier in that delivery year,
21		provided that the 14.5% shall increase by 1.5% each
22		delivery year thereafter to 25% by the delivery year
23		beginning June 1, 2025, and thereafter the 25% value
24		shall apply to each delivery year.
25		On or before April 1 of each year, the Agency shall
26		annually publish a report on its website that

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1		identifies the aggregate amount of renewable energy
2		credits supplied by alternative retail electric
3		suppliers under this subparagraph (H).
4		(I) The Agency shall design its long-term renewable
5		energy procurement plan to maximize the State's interest in
6		the health, safety, and welfare of its residents, including
7		but not limited to minimizing sulfur dioxide, nitrogen
8		oxide, particulate matter and other pollution that
9		adversely affects public health in this State, increasing
10		fuel and resource diversity in this State, enhancing the
11		reliability and resiliency of the electricity distribution
12		system in this State, meeting goals to limit carbon dioxide
13		emissions under federal or State law, and contributing to a
14		cleaner and healthier environment for the citizens of this
15		State. In order to further these legislative purposes,
16		renewable energy credits shall be eligible to be counted
17		toward the renewable energy requirements of this
18		subsection (c) if they are generated from facilities
19		located in this State. The Agency may qualify renewable
20		energy credits from facilities located in states adjacent
21		to Illinois if the generator demonstrates and the Agency
22		determines that the operation of such facility or
23		facilities will help promote the State's interest in the
24		health, safety, and welfare of its residents based on the
25		public interest criteria described above. To ensure that
26		the public interest criteria are applied to the procurement

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1		and given full effect, the Agency's long-term procurement
2		plan shall describe in detail how each public interest
3		factor shall be considered and weighted for facilities
4		located in states adjacent to Illinois.
5		(J) In order to promote the competitive development of
6		renewable energy resources in furtherance of the State's
7		interest in the health, safety, and welfare of its
8		residents, renewable energy credits shall not be eligible
9		to be counted toward the renewable energy requirements of
10		this subsection (c) if they are sourced from a generating
11		unit whose costs were being recovered through rates
12		regulated by this State or any other state or states on or
13		after January 1, 2017. Each contract executed to purchase
14		renewable energy credits under this subsection (c) shall
15		provide for the contract's termination if the costs of the
16		generating unit supplying the renewable energy credits
17		subsequently begin to be recovered through rates regulated
18		by this State or any other state or states; and each
19		contract shall further provide that, in that event, the
20		supplier of the credits must return 110% of all payments
21		received under the contract. Amounts returned under the
22		requirements of this subparagraph (J) shall be retained by
23		the utility and all of these amounts shall be used for the
24		procurement of additional renewable energy credits from
25		new wind or new photovoltaic resources as defined in this
26		subsection (c). The long-term plan shall provide that these

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1		renewable energy credits shall be procured in the next
2		procurement event.
3		Notwithstanding the limitations of this subparagraph
4		(J), renewable energy credits sourced from generating
5		units that are constructed, purchased, owned, or leased by
6		an electric utility as part of an approved project,
7		program, or pilot under Section 1-56 of this Act shall be
8		eligible to be counted toward the renewable energy
9		requirements of this subsection (c), regardless of how the
10		costs of these units are recovered.
11		(K) The long-term renewable resources procurement plan
12		developed by the Agency in accordance with subparagraph (A)
13		of this paragraph (1) shall include an Adjustable Block
14		program for the procurement of renewable energy credits
15		from new photovoltaic projects that are distributed
16		renewable energy generation devices or new photovoltaic
17		community renewable generation projects. The Adjustable
18		Block program shall be designed to provide a transparent
19		schedule of prices and quantities to enable the
20		photovoltaic market to scale up and for renewable energy
21		credit prices to adjust at a predictable rate over time.
22		The prices set by the Adjustable Block program can be
23		reflected as a set value or as the product of a formula.
24		The Adjustable Block program shall include for each
25		category of eligible projects: a schedule of standard block
26		purchase prices to be offered; a series of steps, with

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1		associated nameplate capacity and purchase prices that
2		adjust from step to step; and automatic opening of the next
3		step as soon as the nameplate capacity and available
4		purchase prices for an open step are fully committed or
5		reserved. Only projects energized on or after June 1, 2017
6		shall be eligible for the Adjustable Block program. For
7		each block group the Agency shall determine the number of
8		blocks, the amount of generation capacity in each block,
9		and the purchase price for each block, provided that the
10		purchase price provided and the total amount of generation
11		in all blocks for all block groups shall be sufficient to
12		meet the goals in this subsection (c). The Agency may
13		periodically review its prior decisions establishing the
14		number of blocks, the amount of generation capacity in each
15		block, and the purchase price for each block, and may
16		propose, on an expedited basis, changes to these previously
17		set values, including but not limited to redistributing
18		these amounts and the available funds as necessary and
19		appropriate, subject to Commission approval as part of the
20		periodic plan revision process described in Section
21		16-111.5 of the Public Utilities Act. The Agency may define
22		different block sizes, purchase prices, or other distinct
23		terms and conditions for projects located in different
24		utility service territories if the Agency deems it
25		necessary to meet the goals in this subsection (c).
26		The Adjustable Block program shall include at least the

SB1529 Engrossed - 28 - LRB101 08496 JRG 53573 b
1		following block groups in at least the following amounts,
2		which may be adjusted upon review by the Agency and
3		approval by the Commission as described in this
4		subparagraph (K):
5		(i) At least 25% from distributed renewable energy
6		generation devices with a nameplate capacity of no more
7		than 10 kilowatts.
8		(ii) At least 25% from distributed renewable
9		energy generation devices with a nameplate capacity of
10		more than 10 kilowatts and no more than 2,000
11		kilowatts. The Agency may create sub-categories within
12		this category to account for the differences between
13		projects for small commercial customers, large
14		commercial customers, and public or non-profit
15		customers.
16		(iii) At least 25% from photovoltaic community
17		renewable generation projects.
18		(iv) The remaining 25% shall be allocated as
19		specified by the Agency in the long-term renewable
20		resources procurement plan.
21		The Adjustable Block program shall be designed to
22		ensure that renewable energy credits are procured from
23		photovoltaic distributed renewable energy generation
24		devices and new photovoltaic community renewable energy
25		generation projects in diverse locations and are not
26		concentrated in a few geographic areas.

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1		(L) The procurement of photovoltaic renewable energy
2		credits under items (i) through (iv) of subparagraph (K) of
3		this paragraph (1) shall be subject to the following
4		contract and payment terms:
5		(i) The Agency shall procure contracts of at least
6		15 years in length.
7		(ii) For those renewable energy credits that
8		qualify and are procured under item (i) of subparagraph
9		(K) of this paragraph (1), the renewable energy credit
10		purchase price shall be paid in full by the contracting
11		utilities at the time that the facility producing the
12		renewable energy credits is interconnected at the
13		distribution system level of the utility and
14		energized. The electric utility shall receive and
15		retire all renewable energy credits generated by the
16		project for the first 15 years of operation.
17		(iii) For those renewable energy credits that
18		qualify and are procured under item (ii) and (iii) of
19		subparagraph (K) of this paragraph (1) and any
20		additional categories of distributed generation
21		included in the long-term renewable resources
22		procurement plan and approved by the Commission, 20
23		percent of the renewable energy credit purchase price
24		shall be paid by the contracting utilities at the time
25		that the facility producing the renewable energy
26		credits is interconnected at the distribution system

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1		level of the utility and energized. The remaining
2		portion shall be paid ratably over the subsequent
3		4-year period. The electric utility shall receive and
4		retire all renewable energy credits generated by the
5		project for the first 15 years of operation.
6		(iv) Each contract shall include provisions to
7		ensure the delivery of the renewable energy credits for
8		the full term of the contract.
9		(v) The utility shall be the counterparty to the
10		contracts executed under this subparagraph (L) that
11		are approved by the Commission under the process
12		described in Section 16-111.5 of the Public Utilities
13		Act. No contract shall be executed for an amount that
14		is less than one renewable energy credit per year.
15		(vi) If, at any time, approved applications for the
16		Adjustable Block program exceed funds collected by the
17		electric utility or would cause the Agency to exceed
18		the limitation described in subparagraph (E) of this
19		paragraph (1) on the amount of renewable energy
20		resources that may be procured, then the Agency shall
21		consider future uncommitted funds to be reserved for
22		these contracts on a first-come, first-served basis,
23		with the delivery of renewable energy credits required
24		beginning at the time that the reserved funds become
25		available.
26		(vii) Nothing in this Section shall require the

SB1529 Engrossed - 31 - LRB101 08496 JRG 53573 b
1		utility to advance any payment or pay any amounts that
2		exceed the actual amount of revenues collected by the
3		utility under paragraph (6) of this subsection (c) and
4		subsection (k) of Section 16-108 of the Public
5		Utilities Act, and contracts executed under this
6		Section shall expressly incorporate this limitation.
7		(M) The Agency shall be authorized to retain one or
8		more experts or expert consulting firms to develop,
9		administer, implement, operate, and evaluate the
10		Adjustable Block program described in subparagraph (K) of
11		this paragraph (1), and the Agency shall retain the
12		consultant or consultants in the same manner, to the extent
13		practicable, as the Agency retains others to administer
14		provisions of this Act, including, but not limited to, the
15		procurement administrator. The selection of experts and
16		expert consulting firms and the procurement process
17		described in this subparagraph (M) are exempt from the
18		requirements of Section 20-10 of the Illinois Procurement
19		Code, under Section 20-10 of that Code. The Agency shall
20		strive to minimize administrative expenses in the
21		implementation of the Adjustable Block program.
22		The Agency and its consultant or consultants shall
23		monitor block activity, share program activity with
24		stakeholders and conduct regularly scheduled meetings to
25		discuss program activity and market conditions. If
26		necessary, the Agency may make prospective administrative

SB1529 Engrossed - 32 - LRB101 08496 JRG 53573 b
1		adjustments to the Adjustable Block program design, such as
2		redistributing available funds or making adjustments to
3		purchase prices as necessary to achieve the goals of this
4		subsection (c). Program modifications to any price,
5		capacity block, or other program element that do not
6		deviate from the Commission's approved value by more than
7		25% shall take effect immediately and are not subject to
8		Commission review and approval. Program modifications to
9		any price, capacity block, or other program element that
10		deviate more than 25% from the Commission's approved value
11		must be approved by the Commission as a long-term plan
12		amendment under Section 16-111.5 of the Public Utilities
13		Act. The Agency shall consider stakeholder feedback when
14		making adjustments to the Adjustable Block design and shall
15		notify stakeholders in advance of any planned changes.
16		(N) The long-term renewable resources procurement plan
17		required by this subsection (c) shall include a community
18		renewable generation program. The Agency shall establish
19		the terms, conditions, and program requirements for
20		community renewable generation projects with a goal to
21		expand renewable energy generating facility access to a
22		broader group of energy consumers, to ensure robust
23		participation opportunities for residential and small
24		commercial customers and those who cannot install
25		renewable energy on their own properties. Any plan approved
26		by the Commission shall allow subscriptions to community

SB1529 Engrossed - 33 - LRB101 08496 JRG 53573 b
1		renewable generation projects to be portable and
2		transferable. For purposes of this subparagraph (N),
3		"portable" means that subscriptions may be retained by the
4		subscriber even if the subscriber relocates or changes its
5		address within the same utility service territory; and
6		"transferable" means that a subscriber may assign or sell
7		subscriptions to another person within the same utility
8		service territory.
9		Electric utilities shall provide a monetary credit to a
10		subscriber's subsequent bill for service for the
11		proportional output of a community renewable generation
12		project attributable to that subscriber as specified in
13		Section 16-107.5 of the Public Utilities Act.
14		The Agency shall purchase renewable energy credits
15		from subscribed shares of photovoltaic community renewable
16		generation projects through the Adjustable Block program
17		described in subparagraph (K) of this paragraph (1) or
18		through the Illinois Solar for All Program described in
19		Section 1-56 of this Act. The electric utility shall
20		purchase any unsubscribed energy from community renewable
21		generation projects that are Qualifying Facilities ("QF")
22		under the electric utility's tariff for purchasing the
23		output from QFs under Public Utilities Regulatory Policies
24		Act of 1978.
25		The owners of and any subscribers to a community
26		renewable generation project shall not be considered

SB1529 Engrossed - 34 - LRB101 08496 JRG 53573 b
1		public utilities or alternative retail electricity
2		suppliers under the Public Utilities Act solely as a result
3		of their interest in or subscription to a community
4		renewable generation project and shall not be required to
5		become an alternative retail electric supplier by
6		participating in a community renewable generation project
7		with a public utility.
8		(O) For the delivery year beginning June 1, 2018, the
9		long-term renewable resources procurement plan required by
10		this subsection (c) shall provide for the Agency to procure
11		contracts to continue offering the Illinois Solar for All
12		Program described in subsection (b) of Section 1-56 of this
13		Act, and the contracts approved by the Commission shall be
14		executed by the utilities that are subject to this
15		subsection (c). The long-term renewable resources
16		procurement plan shall allocate 5% of the funds available
17		under the plan for the applicable delivery year, or
18		$10,000,000 per delivery year, whichever is greater, to
19		fund the programs, and the plan shall determine the amount
20		of funding to be apportioned to the programs identified in
21		subsection (b) of Section 1-56 of this Act; provided that
22		for the delivery years beginning June 1, 2017, June 1,
23		2021, and June 1, 2025, the long-term renewable resources
24		procurement plan shall allocate 10% of the funds available
25		under the plan for the applicable delivery year, or
26		$20,000,000 per delivery year, whichever is greater, and

SB1529 Engrossed - 35 - LRB101 08496 JRG 53573 b
1		$10,000,000 of such funds in such year shall be used by an
2		electric utility that serves more than 3,000,000 retail
3		customers in the State to implement a Commission-approved
4		plan under Section 16-108.12 of the Public Utilities Act.
5		In making the determinations required under this
6		subparagraph (O), the Commission shall consider the
7		experience and performance under the programs and any
8		evaluation reports. The Commission shall also provide for
9		an independent evaluation of those programs on a periodic
10		basis that are funded under this subparagraph (O).
11		(2) (Blank).
12		(3) (Blank).
13		(4) The electric utility shall retire all renewable
14		energy credits used to comply with the standard.
15		(5) Beginning with the 2010 delivery year and ending
16		June 1, 2017, an electric utility subject to this
17		subsection (c) shall apply the lesser of the maximum
18		alternative compliance payment rate or the most recent
19		estimated alternative compliance payment rate for its
20		service territory for the corresponding compliance period,
21		established pursuant to subsection (d) of Section 16-115D
22		of the Public Utilities Act to its retail customers that
23		take service pursuant to the electric utility's hourly
24		pricing tariff or tariffs. The electric utility shall
25		retain all amounts collected as a result of the application
26		of the alternative compliance payment rate or rates to such

SB1529 Engrossed - 36 - LRB101 08496 JRG 53573 b
1		customers, and, beginning in 2011, the utility shall
2		include in the information provided under item (1) of
3		subsection (d) of Section 16-111.5 of the Public Utilities
4		Act the amounts collected under the alternative compliance
5		payment rate or rates for the prior year ending May 31.
6		Notwithstanding any limitation on the procurement of
7		renewable energy resources imposed by item (2) of this
8		subsection (c), the Agency shall increase its spending on
9		the purchase of renewable energy resources to be procured
10		by the electric utility for the next plan year by an amount
11		equal to the amounts collected by the utility under the
12		alternative compliance payment rate or rates in the prior
13		year ending May 31.
14		(6) The electric utility shall be entitled to recover
15		all of its costs associated with the procurement of
16		renewable energy credits under plans approved under this
17		Section and Section 16-111.5 of the Public Utilities Act.
18		These costs shall include associated reasonable expenses
19		for implementing the procurement programs, including, but
20		not limited to, the costs of administering and evaluating
21		the Adjustable Block program, through an automatic
22		adjustment clause tariff in accordance with subsection (k)
23		of Section 16-108 of the Public Utilities Act.
24		(7) Renewable energy credits procured from new
25		photovoltaic projects or new distributed renewable energy
26		generation devices under this Section after June 1, 2017

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1		(the effective date of Public Act 99-906) must be procured
2		from devices installed by a qualified person in compliance
3		with the requirements of Section 16-128A of the Public
4		Utilities Act and any rules or regulations adopted
5		thereunder.
6		In meeting the renewable energy requirements of this
7		subsection (c), to the extent feasible and consistent with
8		State and federal law, the renewable energy credit
9		procurements, Adjustable Block solar program, and
10		community renewable generation program shall provide
11		employment opportunities for all segments of the
12		population and workforce, including minority-owned and
13		female-owned business enterprises, and shall not,
14		consistent with State and federal law, discriminate based
15		on race or socioeconomic status.
16		(d) Clean coal portfolio standard.
17		(1) The procurement plans shall include electricity
18		generated using clean coal. Each utility shall enter into
19		one or more sourcing agreements with the initial clean coal
20		facility, as provided in paragraph (3) of this subsection
21		(d), covering electricity generated by the initial clean
22		coal facility representing at least 5% of each utility's
23		total supply to serve the load of eligible retail customers
24		in 2015 and each year thereafter, as described in paragraph
25		(3) of this subsection (d), subject to the limits specified
26		in paragraph (2) of this subsection (d). It is the goal of

SB1529 Engrossed - 38 - LRB101 08496 JRG 53573 b
1		the State that by January 1, 2025, 25% of the electricity
2		used in the State shall be generated by cost-effective
3		clean coal facilities. For purposes of this subsection (d),
4		"cost-effective" means that the expenditures pursuant to
5		such sourcing agreements do not cause the limit stated in
6		paragraph (2) of this subsection (d) to be exceeded and do
7		not exceed cost-based benchmarks, which shall be developed
8		to assess all expenditures pursuant to such sourcing
9		agreements covering electricity generated by clean coal
10		facilities, other than the initial clean coal facility, by
11		the procurement administrator, in consultation with the
12		Commission staff, Agency staff, and the procurement
13		monitor and shall be subject to Commission review and
14		approval.
15		A utility party to a sourcing agreement shall
16		immediately retire any emission credits that it receives in
17		connection with the electricity covered by such agreement.
18		Utilities shall maintain adequate records documenting
19		the purchases under the sourcing agreement to comply with
20		this subsection (d) and shall file an accounting with the
21		load forecast that must be filed with the Agency by July 15
22		of each year, in accordance with subsection (d) of Section
23		16-111.5 of the Public Utilities Act.
24		A utility shall be deemed to have complied with the
25		clean coal portfolio standard specified in this subsection
26		(d) if the utility enters into a sourcing agreement as

SB1529 Engrossed - 39 - LRB101 08496 JRG 53573 b
1		required by this subsection (d).
2		(2) For purposes of this subsection (d), the required
3		execution of sourcing agreements with the initial clean
4		coal facility for a particular year shall be measured as a
5		percentage of the actual amount of electricity
6		(megawatt-hours) supplied by the electric utility to
7		eligible retail customers in the planning year ending
8		immediately prior to the agreement's execution. For
9		purposes of this subsection (d), the amount paid per
10		kilowatthour means the total amount paid for electric
11		service expressed on a per kilowatthour basis. For purposes
12		of this subsection (d), the total amount paid for electric
13		service includes without limitation amounts paid for
14		supply, transmission, distribution, surcharges and add-on
15		taxes.
16		Notwithstanding the requirements of this subsection
17		(d), the total amount paid under sourcing agreements with
18		clean coal facilities pursuant to the procurement plan for
19		any given year shall be reduced by an amount necessary to
20		limit the annual estimated average net increase due to the
21		costs of these resources included in the amounts paid by
22		eligible retail customers in connection with electric
23		service to:
24		(A) in 2010, no more than 0.5% of the amount paid
25		per kilowatthour by those customers during the year
26		ending May 31, 2009;

SB1529 Engrossed - 40 - LRB101 08496 JRG 53573 b
1		(B) in 2011, the greater of an additional 0.5% of
2		the amount paid per kilowatthour by those customers
3		during the year ending May 31, 2010 or 1% of the amount
4		paid per kilowatthour by those customers during the
5		year ending May 31, 2009;
6		(C) in 2012, the greater of an additional 0.5% of
7		the amount paid per kilowatthour by those customers
8		during the year ending May 31, 2011 or 1.5% of the
9		amount paid per kilowatthour by those customers during
10		the year ending May 31, 2009;
11		(D) in 2013, the greater of an additional 0.5% of
12		the amount paid per kilowatthour by those customers
13		during the year ending May 31, 2012 or 2% of the amount
14		paid per kilowatthour by those customers during the
15		year ending May 31, 2009; and
16		(E) thereafter, the total amount paid under
17		sourcing agreements with clean coal facilities
18		pursuant to the procurement plan for any single year
19		shall be reduced by an amount necessary to limit the
20		estimated average net increase due to the cost of these
21		resources included in the amounts paid by eligible
22		retail customers in connection with electric service
23		to no more than the greater of (i) 2.015% of the amount
24		paid per kilowatthour by those customers during the
25		year ending May 31, 2009 or (ii) the incremental amount
26		per kilowatthour paid for these resources in 2013.

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1		These requirements may be altered only as provided by
2		statute.
3		No later than June 30, 2015, the Commission shall
4		review the limitation on the total amount paid under
5		sourcing agreements, if any, with clean coal facilities
6		pursuant to this subsection (d) and report to the General
7		Assembly its findings as to whether that limitation unduly
8		constrains the amount of electricity generated by
9		cost-effective clean coal facilities that is covered by
10		sourcing agreements.
11		(3) Initial clean coal facility. In order to promote
12		development of clean coal facilities in Illinois, each
13		electric utility subject to this Section shall execute a
14		sourcing agreement to source electricity from a proposed
15		clean coal facility in Illinois (the "initial clean coal
16		facility") that will have a nameplate capacity of at least
17		500 MW when commercial operation commences, that has a
18		final Clean Air Act permit on June 1, 2009 (the effective
19		date of Public Act 95-1027), and that will meet the
20		definition of clean coal facility in Section 1-10 of this
21		Act when commercial operation commences. The sourcing
22		agreements with this initial clean coal facility shall be
23		subject to both approval of the initial clean coal facility
24		by the General Assembly and satisfaction of the
25		requirements of paragraph (4) of this subsection (d) and
26		shall be executed within 90 days after any such approval by

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1		the General Assembly. The Agency and the Commission shall
2		have authority to inspect all books and records associated
3		with the initial clean coal facility during the term of
4		such a sourcing agreement. A utility's sourcing agreement
5		for electricity produced by the initial clean coal facility
6		shall include:
7		(A) a formula contractual price (the "contract
8		price") approved pursuant to paragraph (4) of this
9		subsection (d), which shall:
10		(i) be determined using a cost of service
11		methodology employing either a level or deferred
12		capital recovery component, based on a capital
13		structure consisting of 45% equity and 55% debt,
14		and a return on equity as may be approved by the
15		Federal Energy Regulatory Commission, which in any
16		case may not exceed the lower of 11.5% or the rate
17		of return approved by the General Assembly
18		pursuant to paragraph (4) of this subsection (d);
19		and
20		(ii) provide that all miscellaneous net
21		revenue, including but not limited to net revenue
22		from the sale of emission allowances, if any,
23		substitute natural gas, if any, grants or other
24		support provided by the State of Illinois or the
25		United States Government, firm transmission
26		rights, if any, by-products produced by the

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1		facility, energy or capacity derived from the
2		facility and not covered by a sourcing agreement
3		pursuant to paragraph (3) of this subsection (d) or
4		item (5) of subsection (d) of Section 16-115 of the
5		Public Utilities Act, whether generated from the
6		synthesis gas derived from coal, from SNG, or from
7		natural gas, shall be credited against the revenue
8		requirement for this initial clean coal facility;
9		(B) power purchase provisions, which shall:
10		(i) provide that the utility party to such
11		sourcing agreement shall pay the contract price
12		for electricity delivered under such sourcing
13		agreement;
14		(ii) require delivery of electricity to the
15		regional transmission organization market of the
16		utility that is party to such sourcing agreement;
17		(iii) require the utility party to such
18		sourcing agreement to buy from the initial clean
19		coal facility in each hour an amount of energy
20		equal to all clean coal energy made available from
21		the initial clean coal facility during such hour
22		times a fraction, the numerator of which is such
23		utility's retail market sales of electricity
24		(expressed in kilowatthours sold) in the State
25		during the prior calendar month and the
26		denominator of which is the total retail market

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1		sales of electricity (expressed in kilowatthours
2		sold) in the State by utilities during such prior
3		month and the sales of electricity (expressed in
4		kilowatthours sold) in the State by alternative
5		retail electric suppliers during such prior month
6		that are subject to the requirements of this
7		subsection (d) and paragraph (5) of subsection (d)
8		of Section 16-115 of the Public Utilities Act,
9		provided that the amount purchased by the utility
10		in any year will be limited by paragraph (2) of
11		this subsection (d); and
12		(iv) be considered pre-existing contracts in
13		such utility's procurement plans for eligible
14		retail customers;
15		(C) contract for differences provisions, which
16		shall:
17		(i) require the utility party to such sourcing
18		agreement to contract with the initial clean coal
19		facility in each hour with respect to an amount of
20		energy equal to all clean coal energy made
21		available from the initial clean coal facility
22		during such hour times a fraction, the numerator of
23		which is such utility's retail market sales of
24		electricity (expressed in kilowatthours sold) in
25		the utility's service territory in the State
26		during the prior calendar month and the

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1		denominator of which is the total retail market
2		sales of electricity (expressed in kilowatthours
3		sold) in the State by utilities during such prior
4		month and the sales of electricity (expressed in
5		kilowatthours sold) in the State by alternative
6		retail electric suppliers during such prior month
7		that are subject to the requirements of this
8		subsection (d) and paragraph (5) of subsection (d)
9		of Section 16-115 of the Public Utilities Act,
10		provided that the amount paid by the utility in any
11		year will be limited by paragraph (2) of this
12		subsection (d);
13		(ii) provide that the utility's payment
14		obligation in respect of the quantity of
15		electricity determined pursuant to the preceding
16		clause (i) shall be limited to an amount equal to
17		(1) the difference between the contract price
18		determined pursuant to subparagraph (A) of
19		paragraph (3) of this subsection (d) and the
20		day-ahead price for electricity delivered to the
21		regional transmission organization market of the
22		utility that is party to such sourcing agreement
23		(or any successor delivery point at which such
24		utility's supply obligations are financially
25		settled on an hourly basis) (the "reference
26		price") on the day preceding the day on which the

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1		electricity is delivered to the initial clean coal
2		facility busbar, multiplied by (2) the quantity of
3		electricity determined pursuant to the preceding
4		clause (i); and
5		(iii) not require the utility to take physical
6		delivery of the electricity produced by the
7		facility;
8		(D) general provisions, which shall:
9		(i) specify a term of no more than 30 years,
10		commencing on the commercial operation date of the
11		facility;
12		(ii) provide that utilities shall maintain
13		adequate records documenting purchases under the
14		sourcing agreements entered into to comply with
15		this subsection (d) and shall file an accounting
16		with the load forecast that must be filed with the
17		Agency by July 15 of each year, in accordance with
18		subsection (d) of Section 16-111.5 of the Public
19		Utilities Act;
20		(iii) provide that all costs associated with
21		the initial clean coal facility will be
22		periodically reported to the Federal Energy
23		Regulatory Commission and to purchasers in
24		accordance with applicable laws governing
25		cost-based wholesale power contracts;
26		(iv) permit the Illinois Power Agency to

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1		assume ownership of the initial clean coal
2		facility, without monetary consideration and
3		otherwise on reasonable terms acceptable to the
4		Agency, if the Agency so requests no less than 3
5		years prior to the end of the stated contract term;
6		(v) require the owner of the initial clean coal
7		facility to provide documentation to the
8		Commission each year, starting in the facility's
9		first year of commercial operation, accurately
10		reporting the quantity of carbon emissions from
11		the facility that have been captured and
12		sequestered and report any quantities of carbon
13		released from the site or sites at which carbon
14		emissions were sequestered in prior years, based
15		on continuous monitoring of such sites. If, in any
16		year after the first year of commercial operation,
17		the owner of the facility fails to demonstrate that
18		the initial clean coal facility captured and
19		sequestered at least 50% of the total carbon
20		emissions that the facility would otherwise emit
21		or that sequestration of emissions from prior
22		years has failed, resulting in the release of
23		carbon dioxide into the atmosphere, the owner of
24		the facility must offset excess emissions. Any
25		such carbon offsets must be permanent, additional,
26		verifiable, real, located within the State of

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1		Illinois, and legally and practicably enforceable.
2		The cost of such offsets for the facility that are
3		not recoverable shall not exceed $15 million in any
4		given year. No costs of any such purchases of
5		carbon offsets may be recovered from a utility or
6		its customers. All carbon offsets purchased for
7		this purpose and any carbon emission credits
8		associated with sequestration of carbon from the
9		facility must be permanently retired. The initial
10		clean coal facility shall not forfeit its
11		designation as a clean coal facility if the
12		facility fails to fully comply with the applicable
13		carbon sequestration requirements in any given
14		year, provided the requisite offsets are
15		purchased. However, the Attorney General, on
16		behalf of the People of the State of Illinois, may
17		specifically enforce the facility's sequestration
18		requirement and the other terms of this contract
19		provision. Compliance with the sequestration
20		requirements and offset purchase requirements
21		specified in paragraph (3) of this subsection (d)
22		shall be reviewed annually by an independent
23		expert retained by the owner of the initial clean
24		coal facility, with the advance written approval
25		of the Attorney General. The Commission may, in the
26		course of the review specified in item (vii),

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1		reduce the allowable return on equity for the
2		facility if the facility willfully fails to comply
3		with the carbon capture and sequestration
4		requirements set forth in this item (v);
5		(vi) include limits on, and accordingly
6		provide for modification of, the amount the
7		utility is required to source under the sourcing
8		agreement consistent with paragraph (2) of this
9		subsection (d);
10		(vii) require Commission review: (1) to
11		determine the justness, reasonableness, and
12		prudence of the inputs to the formula referenced in
13		subparagraphs (A)(i) through (A)(iii) of paragraph
14		(3) of this subsection (d), prior to an adjustment
15		in those inputs including, without limitation, the
16		capital structure and return on equity, fuel
17		costs, and other operations and maintenance costs
18		and (2) to approve the costs to be passed through
19		to customers under the sourcing agreement by which
20		the utility satisfies its statutory obligations.
21		Commission review shall occur no less than every 3
22		years, regardless of whether any adjustments have
23		been proposed, and shall be completed within 9
24		months;
25		(viii) limit the utility's obligation to such
26		amount as the utility is allowed to recover through

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1		tariffs filed with the Commission, provided that
2		neither the clean coal facility nor the utility
3		waives any right to assert federal pre-emption or
4		any other argument in response to a purported
5		disallowance of recovery costs;
6		(ix) limit the utility's or alternative retail
7		electric supplier's obligation to incur any
8		liability until such time as the facility is in
9		commercial operation and generating power and
10		energy and such power and energy is being delivered
11		to the facility busbar;
12		(x) provide that the owner or owners of the
13		initial clean coal facility, which is the
14		counterparty to such sourcing agreement, shall
15		have the right from time to time to elect whether
16		the obligations of the utility party thereto shall
17		be governed by the power purchase provisions or the
18		contract for differences provisions;
19		(xi) append documentation showing that the
20		formula rate and contract, insofar as they relate
21		to the power purchase provisions, have been
22		approved by the Federal Energy Regulatory
23		Commission pursuant to Section 205 of the Federal
24		Power Act;
25		(xii) provide that any changes to the terms of
26		the contract, insofar as such changes relate to the

SB1529 Engrossed - 51 - LRB101 08496 JRG 53573 b
1		power purchase provisions, are subject to review
2		under the public interest standard applied by the
3		Federal Energy Regulatory Commission pursuant to
4		Sections 205 and 206 of the Federal Power Act; and
5		(xiii) conform with customary lender
6		requirements in power purchase agreements used as
7		the basis for financing non-utility generators.
8		(4) Effective date of sourcing agreements with the
9		initial clean coal facility. Any proposed sourcing
10		agreement with the initial clean coal facility shall not
11		become effective unless the following reports are prepared
12		and submitted and authorizations and approvals obtained:
13		(i) Facility cost report. The owner of the initial
14		clean coal facility shall submit to the Commission, the
15		Agency, and the General Assembly a front-end
16		engineering and design study, a facility cost report,
17		method of financing (including but not limited to
18		structure and associated costs), and an operating and
19		maintenance cost quote for the facility (collectively
20		"facility cost report"), which shall be prepared in
21		accordance with the requirements of this paragraph (4)
22		of subsection (d) of this Section, and shall provide
23		the Commission and the Agency access to the work
24		papers, relied upon documents, and any other backup
25		documentation related to the facility cost report.
26		(ii) Commission report. Within 6 months following

SB1529 Engrossed - 52 - LRB101 08496 JRG 53573 b
1		receipt of the facility cost report, the Commission, in
2		consultation with the Agency, shall submit a report to
3		the General Assembly setting forth its analysis of the
4		facility cost report. Such report shall include, but
5		not be limited to, a comparison of the costs associated
6		with electricity generated by the initial clean coal
7		facility to the costs associated with electricity
8		generated by other types of generation facilities, an
9		analysis of the rate impacts on residential and small
10		business customers over the life of the sourcing
11		agreements, and an analysis of the likelihood that the
12		initial clean coal facility will commence commercial
13		operation by and be delivering power to the facility's
14		busbar by 2016. To assist in the preparation of its
15		report, the Commission, in consultation with the
16		Agency, may hire one or more experts or consultants,
17		the costs of which shall be paid for by the owner of
18		the initial clean coal facility. The Commission and
19		Agency may begin the process of selecting such experts
20		or consultants prior to receipt of the facility cost
21		report.
22		(iii) General Assembly approval. The proposed
23		sourcing agreements shall not take effect unless,
24		based on the facility cost report and the Commission's
25		report, the General Assembly enacts authorizing
26		legislation approving (A) the projected price, stated

SB1529 Engrossed - 53 - LRB101 08496 JRG 53573 b
1		in cents per kilowatthour, to be charged for
2		electricity generated by the initial clean coal
3		facility, (B) the projected impact on residential and
4		small business customers' bills over the life of the
5		sourcing agreements, and (C) the maximum allowable
6		return on equity for the project; and
7		(iv) Commission review. If the General Assembly
8		enacts authorizing legislation pursuant to
9		subparagraph (iii) approving a sourcing agreement, the
10		Commission shall, within 90 days of such enactment,
11		complete a review of such sourcing agreement. During
12		such time period, the Commission shall implement any
13		directive of the General Assembly, resolve any
14		disputes between the parties to the sourcing agreement
15		concerning the terms of such agreement, approve the
16		form of such agreement, and issue an order finding that
17		the sourcing agreement is prudent and reasonable.
18		The facility cost report shall be prepared as follows:
19		(A) The facility cost report shall be prepared by
20		duly licensed engineering and construction firms
21		detailing the estimated capital costs payable to one or
22		more contractors or suppliers for the engineering,
23		procurement and construction of the components
24		comprising the initial clean coal facility and the
25		estimated costs of operation and maintenance of the
26		facility. The facility cost report shall include:

SB1529 Engrossed - 54 - LRB101 08496 JRG 53573 b
1		(i) an estimate of the capital cost of the core
2		plant based on one or more front end engineering
3		and design studies for the gasification island and
4		related facilities. The core plant shall include
5		all civil, structural, mechanical, electrical,
6		control, and safety systems.
7		(ii) an estimate of the capital cost of the
8		balance of the plant, including any capital costs
9		associated with sequestration of carbon dioxide
10		emissions and all interconnects and interfaces
11		required to operate the facility, such as
12		transmission of electricity, construction or
13		backfeed power supply, pipelines to transport
14		substitute natural gas or carbon dioxide, potable
15		water supply, natural gas supply, water supply,
16		water discharge, landfill, access roads, and coal
17		delivery.
18		The quoted construction costs shall be expressed
19		in nominal dollars as of the date that the quote is
20		prepared and shall include capitalized financing costs
21		during construction, taxes, insurance, and other
22		owner's costs, and an assumed escalation in materials
23		and labor beyond the date as of which the construction
24		cost quote is expressed.
25		(B) The front end engineering and design study for
26		the gasification island and the cost study for the

SB1529 Engrossed - 55 - LRB101 08496 JRG 53573 b
1		balance of plant shall include sufficient design work
2		to permit quantification of major categories of
3		materials, commodities and labor hours, and receipt of
4		quotes from vendors of major equipment required to
5		construct and operate the clean coal facility.
6		(C) The facility cost report shall also include an
7		operating and maintenance cost quote that will provide
8		the estimated cost of delivered fuel, personnel,
9		maintenance contracts, chemicals, catalysts,
10		consumables, spares, and other fixed and variable
11		operations and maintenance costs. The delivered fuel
12		cost estimate will be provided by a recognized third
13		party expert or experts in the fuel and transportation
14		industries. The balance of the operating and
15		maintenance cost quote, excluding delivered fuel
16		costs, will be developed based on the inputs provided
17		by duly licensed engineering and construction firms
18		performing the construction cost quote, potential
19		vendors under long-term service agreements and plant
20		operating agreements, or recognized third party plant
21		operator or operators.
22		The operating and maintenance cost quote
23		(including the cost of the front end engineering and
24		design study) shall be expressed in nominal dollars as
25		of the date that the quote is prepared and shall
26		include taxes, insurance, and other owner's costs, and

SB1529 Engrossed - 56 - LRB101 08496 JRG 53573 b
1		an assumed escalation in materials and labor beyond the
2		date as of which the operating and maintenance cost
3		quote is expressed.
4		(D) The facility cost report shall also include an
5		analysis of the initial clean coal facility's ability
6		to deliver power and energy into the applicable
7		regional transmission organization markets and an
8		analysis of the expected capacity factor for the
9		initial clean coal facility.
10		(E) Amounts paid to third parties unrelated to the
11		owner or owners of the initial clean coal facility to
12		prepare the core plant construction cost quote,
13		including the front end engineering and design study,
14		and the operating and maintenance cost quote will be
15		reimbursed through Coal Development Bonds.
16		(5) Re-powering and retrofitting coal-fired power
17		plants previously owned by Illinois utilities to qualify as
18		clean coal facilities. During the 2009 procurement
19		planning process and thereafter, the Agency and the
20		Commission shall consider sourcing agreements covering
21		electricity generated by power plants that were previously
22		owned by Illinois utilities and that have been or will be
23		converted into clean coal facilities, as defined by Section
24		1-10 of this Act. Pursuant to such procurement planning
25		process, the owners of such facilities may propose to the
26		Agency sourcing agreements with utilities and alternative

SB1529 Engrossed - 57 - LRB101 08496 JRG 53573 b
1		retail electric suppliers required to comply with
2		subsection (d) of this Section and item (5) of subsection
3		(d) of Section 16-115 of the Public Utilities Act, covering
4		electricity generated by such facilities. In the case of
5		sourcing agreements that are power purchase agreements,
6		the contract price for electricity sales shall be
7		established on a cost of service basis. In the case of
8		sourcing agreements that are contracts for differences,
9		the contract price from which the reference price is
10		subtracted shall be established on a cost of service basis.
11		The Agency and the Commission may approve any such utility
12		sourcing agreements that do not exceed cost-based
13		benchmarks developed by the procurement administrator, in
14		consultation with the Commission staff, Agency staff and
15		the procurement monitor, subject to Commission review and
16		approval. The Commission shall have authority to inspect
17		all books and records associated with these clean coal
18		facilities during the term of any such contract.
19		(6) Costs incurred under this subsection (d) or
20		pursuant to a contract entered into under this subsection
21		(d) shall be deemed prudently incurred and reasonable in
22		amount and the electric utility shall be entitled to full
23		cost recovery pursuant to the tariffs filed with the
24		Commission.
25		(d-5) Zero emission standard.
26		(1) Beginning with the delivery year commencing on June

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1		1, 2017, the Agency shall, for electric utilities that
2		serve at least 100,000 retail customers in this State,
3		procure contracts with zero emission facilities that are
4		reasonably capable of generating cost-effective zero
5		emission credits in an amount approximately equal to 16% of
6		the actual amount of electricity delivered by each electric
7		utility to retail customers in the State during calendar
8		year 2014. For an electric utility serving fewer than
9		100,000 retail customers in this State that requested,
10		under Section 16-111.5 of the Public Utilities Act, that
11		the Agency procure power and energy for all or a portion of
12		the utility's Illinois load for the delivery year
13		commencing June 1, 2016, the Agency shall procure contracts
14		with zero emission facilities that are reasonably capable
15		of generating cost-effective zero emission credits in an
16		amount approximately equal to 16% of the portion of power
17		and energy to be procured by the Agency for the utility.
18		The duration of the contracts procured under this
19		subsection (d-5) shall be for a term of 10 years ending May
20		31, 2027. The quantity of zero emission credits to be
21		procured under the contracts shall be all of the zero
22		emission credits generated by the zero emission facility in
23		each delivery year; however, if the zero emission facility
24		is owned by more than one entity, then the quantity of zero
25		emission credits to be procured under the contracts shall
26		be the amount of zero emission credits that are generated

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1		from the portion of the zero emission facility that is
2		owned by the winning supplier.
3		The 16% value identified in this paragraph (1) is the
4		average of the percentage targets in subparagraph (B) of
5		paragraph (1) of subsection (c) of this Section 1-75 of
6		this Act for the 5 delivery years beginning June 1, 2017.
7		The procurement process shall be subject to the
8		following provisions:
9		(A) Those zero emission facilities that intend to
10		participate in the procurement shall submit to the
11		Agency the following eligibility information for each
12		zero emission facility on or before the date
13		established by the Agency:
14		(i) the in-service date and remaining useful
15		life of the zero emission facility;
16		(ii) the amount of power generated annually
17		for each of the years 2005 through 2015, and the
18		projected zero emission credits to be generated
19		over the remaining useful life of the zero emission
20		facility, which shall be used to determine the
21		capability of each facility;
22		(iii) the annual zero emission facility cost
23		projections, expressed on a per megawatthour
24		basis, over the next 6 delivery years, which shall
25		include the following: operation and maintenance
26		expenses; fully allocated overhead costs, which

SB1529 Engrossed - 60 - LRB101 08496 JRG 53573 b
1		shall be allocated using the methodology developed
2		by the Institute for Nuclear Power Operations;
3		fuel expenditures; non-fuel capital expenditures;
4		spent fuel expenditures; a return on working
5		capital; the cost of operational and market risks
6		that could be avoided by ceasing operation; and any
7		other costs necessary for continued operations,
8		provided that "necessary" means, for purposes of
9		this item (iii), that the costs could reasonably be
10		avoided only by ceasing operations of the zero
11		emission facility; and
12		(iv) a commitment to continue operating, for
13		the duration of the contract or contracts executed
14		under the procurement held under this subsection
15		(d-5), the zero emission facility that produces
16		the zero emission credits to be procured in the
17		procurement.
18		The information described in item (iii) of this
19		subparagraph (A) may be submitted on a confidential
20		basis and shall be treated and maintained by the
21		Agency, the procurement administrator, and the
22		Commission as confidential and proprietary and exempt
23		from disclosure under subparagraphs (a) and (g) of
24		paragraph (1) of Section 7 of the Freedom of
25		Information Act. The Office of Attorney General shall
26		have access to, and maintain the confidentiality of,

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1		such information pursuant to Section 6.5 of the
2		Attorney General Act.
3		(B) The price for each zero emission credit
4		procured under this subsection (d-5) for each delivery
5		year shall be in an amount that equals the Social Cost
6		of Carbon, expressed on a price per megawatthour basis.
7		However, to ensure that the procurement remains
8		affordable to retail customers in this State if
9		electricity prices increase, the price in an
10		applicable delivery year shall be reduced below the
11		Social Cost of Carbon by the amount ("Price
12		Adjustment") by which the market price index for the
13		applicable delivery year exceeds the baseline market
14		price index for the consecutive 12-month period ending
15		May 31, 2016. If the Price Adjustment is greater than
16		or equal to the Social Cost of Carbon in an applicable
17		delivery year, then no payments shall be due in that
18		delivery year. The components of this calculation are
19		defined as follows:
20		(i) Social Cost of Carbon: The Social Cost of
21		Carbon is $16.50 per megawatthour, which is based
22		on the U.S. Interagency Working Group on Social
23		Cost of Carbon's price in the August 2016 Technical
24		Update using a 3% discount rate, adjusted for
25		inflation for each year of the program. Beginning
26		with the delivery year commencing June 1, 2023, the

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1		price per megawatthour shall increase by $1 per
2		megawatthour, and continue to increase by an
3		additional $1 per megawatthour each delivery year
4		thereafter.
5		(ii) Baseline market price index: The baseline
6		market price index for the consecutive 12-month
7		period ending May 31, 2016 is $31.40 per
8		megawatthour, which is based on the sum of (aa) the
9		average day-ahead energy price across all hours of
10		such 12-month period at the PJM Interconnection
11		LLC Northern Illinois Hub, (bb) 50% multiplied by
12		the Base Residual Auction, or its successor,
13		capacity price for the rest of the RTO zone group
14		determined by PJM Interconnection LLC, divided by
15		24 hours per day, and (cc) 50% multiplied by the
16		Planning Resource Auction, or its successor,
17		capacity price for Zone 4 determined by the
18		Midcontinent Independent System Operator, Inc.,
19		divided by 24 hours per day.
20		(iii) Market price index: The market price
21		index for a delivery year shall be the sum of
22		projected energy prices and projected capacity
23		prices determined as follows:
24		(aa) Projected energy prices: the
25		projected energy prices for the applicable
26		delivery year shall be calculated once for the

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1		year using the forward market price for the PJM
2		Interconnection, LLC Northern Illinois Hub.
3		The forward market price shall be calculated as
4		follows: the energy forward prices for each
5		month of the applicable delivery year averaged
6		for each trade date during the calendar year
7		immediately preceding that delivery year to
8		produce a single energy forward price for the
9		delivery year. The forward market price
10		calculation shall use data published by the
11		Intercontinental Exchange, or its successor.
12		(bb) Projected capacity prices:
13		(I) For the delivery years commencing
14		June 1, 2017, June 1, 2018, and June 1,
15		2019, the projected capacity price shall
16		be equal to the sum of (1) 50% multiplied
17		by the Base Residual Auction, or its
18		successor, price for the rest of the RTO
19		zone group as determined by PJM
20		Interconnection LLC, divided by 24 hours
21		per day and, (2) 50% multiplied by the
22		resource auction price determined in the
23		resource auction administered by the
24		Midcontinent Independent System Operator,
25		Inc., in which the largest percentage of
26		load cleared for Local Resource Zone 4,

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1		divided by 24 hours per day, and where such
2		price is determined by the Midcontinent
3		Independent System Operator, Inc.
4		(II) For the delivery year commencing
5		June 1, 2020, and each year thereafter, the
6		projected capacity price shall be equal to
7		the sum of (1) 50% multiplied by the Base
8		Residual Auction, or its successor, price
9		for the ComEd zone as determined by PJM
10		Interconnection LLC, divided by 24 hours
11		per day, and (2) 50% multiplied by the
12		resource auction price determined in the
13		resource auction administered by the
14		Midcontinent Independent System Operator,
15		Inc., in which the largest percentage of
16		load cleared for Local Resource Zone 4,
17		divided by 24 hours per day, and where such
18		price is determined by the Midcontinent
19		Independent System Operator, Inc.
20		For purposes of this subsection (d-5):
21		"Rest of the RTO" and "ComEd Zone" shall have
22		the meaning ascribed to them by PJM
23		Interconnection, LLC.
24		"RTO" means regional transmission
25		organization.
26		(C) No later than 45 days after June 1, 2017 (the

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1		effective date of Public Act 99-906), the Agency shall
2		publish its proposed zero emission standard
3		procurement plan. The plan shall be consistent with the
4		provisions of this paragraph (1) and shall provide that
5		winning bids shall be selected based on public interest
6		criteria that include, but are not limited to,
7		minimizing carbon dioxide emissions that result from
8		electricity consumed in Illinois and minimizing sulfur
9		dioxide, nitrogen oxide, and particulate matter
10		emissions that adversely affect the citizens of this
11		State. In particular, the selection of winning bids
12		shall take into account the incremental environmental
13		benefits resulting from the procurement, such as any
14		existing environmental benefits that are preserved by
15		the procurements held under Public Act 99-906 and would
16		cease to exist if the procurements were not held,
17		including the preservation of zero emission
18		facilities. The plan shall also describe in detail how
19		each public interest factor shall be considered and
20		weighted in the bid selection process to ensure that
21		the public interest criteria are applied to the
22		procurement and given full effect.
23		For purposes of developing the plan, the Agency
24		shall consider any reports issued by a State agency,
25		board, or commission under House Resolution 1146 of the
26		98th General Assembly and paragraph (4) of subsection

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1		(d) of this Section 1-75 of this Act, as well as
2		publicly available analyses and studies performed by
3		or for regional transmission organizations that serve
4		the State and their independent market monitors.
5		Upon publishing of the zero emission standard
6		procurement plan, copies of the plan shall be posted
7		and made publicly available on the Agency's website.
8		All interested parties shall have 10 days following the
9		date of posting to provide comment to the Agency on the
10		plan. All comments shall be posted to the Agency's
11		website. Following the end of the comment period, but
12		no more than 60 days later than June 1, 2017 (the
13		effective date of Public Act 99-906), the Agency shall
14		revise the plan as necessary based on the comments
15		received and file its zero emission standard
16		procurement plan with the Commission.
17		If the Commission determines that the plan will
18		result in the procurement of cost-effective zero
19		emission credits, then the Commission shall, after
20		notice and hearing, but no later than 45 days after the
21		Agency filed the plan, approve the plan or approve with
22		modification. For purposes of this subsection (d-5),
23		"cost effective" means the projected costs of
24		procuring zero emission credits from zero emission
25		facilities do not cause the limit stated in paragraph
26		(2) of this subsection to be exceeded.

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1		(C-5) As part of the Commission's review and
2		acceptance or rejection of the procurement results,
3		the Commission shall, in its public notice of
4		successful bidders:
5		(i) identify how the winning bids satisfy the
6		public interest criteria described in subparagraph
7		(C) of this paragraph (1) of minimizing carbon
8		dioxide emissions that result from electricity
9		consumed in Illinois and minimizing sulfur
10		dioxide, nitrogen oxide, and particulate matter
11		emissions that adversely affect the citizens of
12		this State;
13		(ii) specifically address how the selection of
14		winning bids takes into account the incremental
15		environmental benefits resulting from the
16		procurement, including any existing environmental
17		benefits that are preserved by the procurements
18		held under Public Act 99-906 and would have ceased
19		to exist if the procurements had not been held,
20		such as the preservation of zero emission
21		facilities;
22		(iii) quantify the environmental benefit of
23		preserving the resources identified in item (ii)
24		of this subparagraph (C-5), including the
25		following:
26		(aa) the value of avoided greenhouse gas

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1		emissions measured as the product of the zero
2		emission facilities' output over the contract
3		term multiplied by the U.S. Environmental
4		Protection Agency eGrid subregion carbon
5		dioxide emission rate and the U.S. Interagency
6		Working Group on Social Cost of Carbon's price
7		in the August 2016 Technical Update using a 3%
8		discount rate, adjusted for inflation for each
9		delivery year; and
10		(bb) the costs of replacement with other
11		zero carbon dioxide resources, including wind
12		and photovoltaic, based upon the simple
13		average of the following:
14		(I) the price, or if there is more than
15		one price, the average of the prices, paid
16		for renewable energy credits from new
17		utility-scale wind projects in the
18		procurement events specified in item (i)
19		of subparagraph (G) of paragraph (1) of
20		subsection (c) of this Section 1-75 of this
21		Act; and
22		(II) the price, or if there is more
23		than one price, the average of the prices,
24		paid for renewable energy credits from new
25		utility-scale solar projects and
26		brownfield site photovoltaic projects in

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1		the procurement events specified in item
2		(ii) of subparagraph (G) of paragraph (1)
3		of subsection (c) of this Section 1-75 of
4		this Act and, after January 1, 2015,
5		renewable energy credits from photovoltaic
6		distributed generation projects in
7		procurement events held under subsection
8		(c) of this Section 1-75 of this Act.
9		Each utility shall enter into binding contractual
10		arrangements with the winning suppliers.
11		The procurement described in this subsection
12		(d-5), including, but not limited to, the execution of
13		all contracts procured, shall be completed no later
14		than May 10, 2017. Based on the effective date of
15		Public Act 99-906, the Agency and Commission may, as
16		appropriate, modify the various dates and timelines
17		under this subparagraph and subparagraphs (C) and (D)
18		of this paragraph (1). The procurement and plan
19		approval processes required by this subsection (d-5)
20		shall be conducted in conjunction with the procurement
21		and plan approval processes required by subsection (c)
22		of this Section and Section 16-111.5 of the Public
23		Utilities Act, to the extent practicable.
24		Notwithstanding whether a procurement event is
25		conducted under Section 16-111.5 of the Public
26		Utilities Act, the Agency shall immediately initiate a

SB1529 Engrossed - 70 - LRB101 08496 JRG 53573 b
1		procurement process on June 1, 2017 (the effective date
2		of Public Act 99-906).
3		(D) Following the procurement event described in
4		this paragraph (1) and consistent with subparagraph
5		(B) of this paragraph (1), the Agency shall calculate
6		the payments to be made under each contract for the
7		next delivery year based on the market price index for
8		that delivery year. The Agency shall publish the
9		payment calculations no later than May 25, 2017 and
10		every May 25 thereafter.
11		(E) Notwithstanding the requirements of this
12		subsection (d-5), the contracts executed under this
13		subsection (d-5) shall provide that the zero emission
14		facility may, as applicable, suspend or terminate
15		performance under the contracts in the following
16		instances:
17		(i) A zero emission facility shall be excused
18		from its performance under the contract for any
19		cause beyond the control of the resource,
20		including, but not restricted to, acts of God,
21		flood, drought, earthquake, storm, fire,
22		lightning, epidemic, war, riot, civil disturbance
23		or disobedience, labor dispute, labor or material
24		shortage, sabotage, acts of public enemy,
25		explosions, orders, regulations or restrictions
26		imposed by governmental, military, or lawfully

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1		established civilian authorities, which, in any of
2		the foregoing cases, by exercise of commercially
3		reasonable efforts the zero emission facility
4		could not reasonably have been expected to avoid,
5		and which, by the exercise of commercially
6		reasonable efforts, it has been unable to
7		overcome. In such event, the zero emission
8		facility shall be excused from performance for the
9		duration of the event, including, but not limited
10		to, delivery of zero emission credits, and no
11		payment shall be due to the zero emission facility
12		during the duration of the event.
13		(ii) A zero emission facility shall be
14		permitted to terminate the contract if legislation
15		is enacted into law by the General Assembly that
16		imposes or authorizes a new tax, special
17		assessment, or fee on the generation of
18		electricity, the ownership or leasehold of a
19		generating unit, or the privilege or occupation of
20		such generation, ownership, or leasehold of
21		generation units by a zero emission facility.
22		However, the provisions of this item (ii) do not
23		apply to any generally applicable tax, special
24		assessment or fee, or requirements imposed by
25		federal law.
26		(iii) A zero emission facility shall be

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1		permitted to terminate the contract in the event
2		that the resource requires capital expenditures in
3		excess of $40,000,000 that were neither known nor
4		reasonably foreseeable at the time it executed the
5		contract and that a prudent owner or operator of
6		such resource would not undertake.
7		(iv) A zero emission facility shall be
8		permitted to terminate the contract in the event
9		the Nuclear Regulatory Commission terminates the
10		resource's license.
11		(F) If the zero emission facility elects to
12		terminate a contract under this subparagraph (E) , of
13		this paragraph (1), then the Commission shall reopen
14		the docket in which the Commission approved the zero
15		emission standard procurement plan under subparagraph
16		(C) of this paragraph (1) and, after notice and
17		hearing, enter an order acknowledging the contract
18		termination election if such termination is consistent
19		with the provisions of this subsection (d-5).
20		(2) For purposes of this subsection (d-5), the amount
21		paid per kilowatthour means the total amount paid for
22		electric service expressed on a per kilowatthour basis. For
23		purposes of this subsection (d-5), the total amount paid
24		for electric service includes, without limitation, amounts
25		paid for supply, transmission, distribution, surcharges,
26		and add-on taxes.

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1		Notwithstanding the requirements of this subsection
2		(d-5), the contracts executed under this subsection (d-5)
3		shall provide that the total of zero emission credits
4		procured under a procurement plan shall be subject to the
5		limitations of this paragraph (2). For each delivery year,
6		the contractual volume receiving payments in such year
7		shall be reduced for all retail customers based on the
8		amount necessary to limit the net increase that delivery
9		year to the costs of those credits included in the amounts
10		paid by eligible retail customers in connection with
11		electric service to no more than 1.65% of the amount paid
12		per kilowatthour by eligible retail customers during the
13		year ending May 31, 2009. The result of this computation
14		shall apply to and reduce the procurement for all retail
15		customers, and all those customers shall pay the same
16		single, uniform cents per kilowatthour charge under
17		subsection (k) of Section 16-108 of the Public Utilities
18		Act. To arrive at a maximum dollar amount of zero emission
19		credits to be paid for the particular delivery year, the
20		resulting per kilowatthour amount shall be applied to the
21		actual amount of kilowatthours of electricity delivered by
22		the electric utility in the delivery year immediately prior
23		to the procurement, to all retail customers in its service
24		territory. Unpaid contractual volume for any delivery year
25		shall be paid in any subsequent delivery year in which such
26		payments can be made without exceeding the amount specified

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1		in this paragraph (2). The calculations required by this
2		paragraph (2) shall be made only once for each procurement
3		plan year. Once the determination as to the amount of zero
4		emission credits to be paid is made based on the
5		calculations set forth in this paragraph (2), no subsequent
6		rate impact determinations shall be made and no adjustments
7		to those contract amounts shall be allowed. All costs
8		incurred under those contracts and in implementing this
9		subsection (d-5) shall be recovered by the electric utility
10		as provided in this Section.
11		No later than June 30, 2019, the Commission shall
12		review the limitation on the amount of zero emission
13		credits procured under this subsection (d-5) and report to
14		the General Assembly its findings as to whether that
15		limitation unduly constrains the procurement of
16		cost-effective zero emission credits.
17		(3) Six years after the execution of a contract under
18		this subsection (d-5), the Agency shall determine whether
19		the actual zero emission credit payments received by the
20		supplier over the 6-year period exceed the Average ZEC
21		Payment. In addition, at the end of the term of a contract
22		executed under this subsection (d-5), or at the time, if
23		any, a zero emission facility's contract is terminated
24		under subparagraph (E) of paragraph (1) of this subsection
25		(d-5), then the Agency shall determine whether the actual
26		zero emission credit payments received by the supplier over

SB1529 Engrossed - 75 - LRB101 08496 JRG 53573 b
1		the term of the contract exceed the Average ZEC Payment,
2		after taking into account any amounts previously credited
3		back to the utility under this paragraph (3). If the Agency
4		determines that the actual zero emission credit payments
5		received by the supplier over the relevant period exceed
6		the Average ZEC Payment, then the supplier shall credit the
7		difference back to the utility. The amount of the credit
8		shall be remitted to the applicable electric utility no
9		later than 120 days after the Agency's determination, which
10		the utility shall reflect as a credit on its retail
11		customer bills as soon as practicable; however, the credit
12		remitted to the utility shall not exceed the total amount
13		of payments received by the facility under its contract.
14		For purposes of this Section, the Average ZEC Payment
15		shall be calculated by multiplying the quantity of zero
16		emission credits delivered under the contract times the
17		average contract price. The average contract price shall be
18		determined by subtracting the amount calculated under
19		subparagraph (B) of this paragraph (3) from the amount
20		calculated under subparagraph (A) of this paragraph (3), as
21		follows:
22		(A) The average of the Social Cost of Carbon, as
23		defined in subparagraph (B) of paragraph (1) of this
24		subsection (d-5), during the term of the contract.
25		(B) The average of the market price indices, as
26		defined in subparagraph (B) of paragraph (1) of this

SB1529 Engrossed - 76 - LRB101 08496 JRG 53573 b
1		subsection (d-5), during the term of the contract,
2		minus the baseline market price index, as defined in
3		subparagraph (B) of paragraph (1) of this subsection
4		(d-5).
5		If the subtraction yields a negative number, then the
6		Average ZEC Payment shall be zero.
7		(4) Cost-effective zero emission credits procured from
8		zero emission facilities shall satisfy the applicable
9		definitions set forth in Section 1-10 of this Act.
10		(5) The electric utility shall retire all zero emission
11		credits used to comply with the requirements of this
12		subsection (d-5).
13		(6) Electric utilities shall be entitled to recover all
14		of the costs associated with the procurement of zero
15		emission credits through an automatic adjustment clause
16		tariff in accordance with subsection (k) and (m) of Section
17		16-108 of the Public Utilities Act, and the contracts
18		executed under this subsection (d-5) shall provide that the
19		utilities' payment obligations under such contracts shall
20		be reduced if an adjustment is required under subsection
21		(m) of Section 16-108 of the Public Utilities Act.
22		(7) This subsection (d-5) shall become inoperative on
23		January 1, 2028.
24		(e) The draft procurement plans are subject to public
25		comment, as required by Section 16-111.5 of the Public
26		Utilities Act.

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1		(f) The Agency shall submit the final procurement plan to
2		the Commission. The Agency shall revise a procurement plan if
3		the Commission determines that it does not meet the standards
4		set forth in Section 16-111.5 of the Public Utilities Act.
5		(g) The Agency shall assess fees to each affected utility
6		to recover the costs incurred in preparation of the annual
7		procurement plan for the utility.
8		(h) The Agency shall assess fees to each bidder to recover
9		the costs incurred in connection with a competitive procurement
10		process.
11		(i) A renewable energy credit, carbon emission credit, or
12		zero emission credit can only be used once to comply with a
13		single portfolio or other standard as set forth in subsection
14		(c), subsection (d), or subsection (d-5) of this Section,
15		respectively. A renewable energy credit, carbon emission
16		credit, or zero emission credit cannot be used to satisfy the
17		requirements of more than one standard. If more than one type
18		of credit is issued for the same megawatt hour of energy, only
19		one credit can be used to satisfy the requirements of a single
20		standard. After such use, the credit must be retired together
21		with any other credits issued for the same megawatt hour of
22		energy.
23		(Source: P.A. 99-536, eff. 7-8-16; 99-906, eff. 6-1-17;
24		100-863, eff. 8-14-18; revised 10-18-18.)