Bill Text: IL SB2248 | 2021-2022 | 102nd General Assembly | Introduced

---

Bill Title: Amends the Illinois Power Agency Act. Makes changes in provisions concerning the Illinois Solar for All Program. Provides that the Illinois Power Agency shall make every effort to ensure that small and emerging businesses, particularly those located in low-income and environmental justice communities are able to participate in the Illinois Solar for All Program. Makes changes to incentive programs provided for under the Illinois Solar for All Program. Makes changes in provisions concerning legislative declarations and findings; definitions; and general powers and duties of the Agency. Amends the Public Utilities Act. Provides that the Illinois Commerce Commission shall open an investigation to deliberate, develop, and adopt a renewable energy access plan no later than December 31, 2022. Provides that within 90 days after the effective date of the amendatory Act, the Commission shall open a proceeding to update the interconnection standards and applicable utility tariffs and establish an interconnection working group. Makes changes in provisions concerning net electricity metering; distributed generation rebate; recovery of costs associated with the provision of delivery and other services; and provisions relating to procurement. Amends the Illinois Administrative Procedure Act. Permits the Illinois Commerce Commission to adopt emergency rules. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-04-16 - Rule 3-9(a) / Re-referred to Assignments [SB2248 Detail]

Download: Illinois-2021-SB2248-Introduced.html

---

102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB2248 Introduced 2/26/2021, by Sen. Jacqueline Y. Collins SYNOPSIS AS INTRODUCED:
See Index
Amends the Illinois Power Agency Act. Makes changes in provisions concerning the Illinois Solar for All Program. Provides that the Illinois Power Agency shall make every effort to ensure that small and emerging businesses, particularly those located in low-income and environmental justice communities are able to participate in the Illinois Solar for All Program. Makes changes to incentive programs provided for under the Illinois Solar for All Program. Makes changes in provisions concerning legislative declarations and findings; definitions; and general powers and duties of the Agency. Amends the Public Utilities Act. Provides that the Illinois Commerce Commission shall open an investigation to deliberate, develop, and adopt a renewable energy access plan no later than December 31, 2022. Provides that within 90 days after the effective date of the amendatory Act, the Commission shall open a proceeding to update the interconnection standards and applicable utility tariffs and establish an interconnection working group. Makes changes in provisions concerning net electricity metering; distributed generation rebate; recovery of costs associated with the provision of delivery and other services; and provisions relating to procurement. Amends the Illinois Administrative Procedure Act. Permits the Illinois Commerce Commission to adopt emergency rules. Effective immediately.
LRB102 17406 SPS 22899 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
SB2248 LRB102 17406 SPS 22899 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Findings. The General Assembly finds that:
(a) The growing clean energy economy in Illinois can be a
vehicle for expanding equitable access to public health,
safety, a cleaner environment, quality jobs, economic
opportunity, and wealth-building, particularly in economically
disadvantaged communities and communities of black,
indigenous, and people of color that have had to bear the
disproportionate burden of dirty fossil fuel pollution.
(b) Placing Illinois on a path to 100% renewable energy is
vital to a clean energy future. To bring this vision to
fruition, our energy policy must prioritize a just transition
that incentivizes renewable development and other
carbon-reducing policies, such as energy efficiency,
beneficial electrification, and peak demand reduction, while
ensuring that the benefits and opportunities of a carbon-free
future are accessible in economically disadvantaged
communities, environmental justice communities, and
communities of black, indigenous, and people of color.
Section 5. The Illinois Administrative Procedure Act is
amended by adding Section 5-45.8 as follows:

SB2248 - 2 - LRB102 17406 SPS 22899 b
(5 ILCS 100/5-45.8 new)
Sec. 5-45.8. Emergency rulemaking; Public Utilities Act.
To provide for the expeditious and timely implementation of
this amendatory Act of the 102nd General Assembly, emergency
rules may be adopted in accordance with Section 5-45 by the
Illinois Commerce Commission to implement the changes made by
this amendatory Act of the 102nd General Assembly to the
Public Utilities Act. The adoption of emergency rules
authorized by Section 5-45 and this Section is deemed to be
necessary for the public interest, safety, and welfare.
Section 10. The Illinois Power Agency Act is amended by
changing Sections 1-5, 1-10, 1-20, 1-56, and 1-75 as follows:
(20 ILCS 3855/1-5)
Sec. 1-5. Legislative declarations and findings. The
General Assembly finds and declares:
(1) The health, welfare, and prosperity of all
Illinois residents citizens require the provision of
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability.
(1.5) To provide the highest quality of life for the
residents of Illinois, and to provide for a clean and

SB2248 - 3 - LRB102 17406 SPS 22899 b
healthy environment, it is the policy of this State to
rapidly transition to 100% renewable energy.
(2) (Blank).
(3) (Blank).
(4) It is necessary to improve the process of
procuring electricity to serve Illinois residents, to
promote investment in energy efficiency and
demand-response measures, and to maintain and support
development of clean coal technologies, generation
resources that operate at all hours of the day and under
all weather conditions, zero emission facilities, and
renewable resources.
(5) Procuring a diverse electricity supply portfolio
will ensure the lowest total cost over time for adequate,
reliable, efficient, and environmentally sustainable
electric service.
(6) Including renewable resources and zero emission
credits from zero emission facilities in that portfolio
will reduce long-term direct and indirect costs to
consumers by decreasing environmental impacts and by
avoiding or delaying the need for new generation,
transmission, and distribution infrastructure. Developing
new renewable energy resources in Illinois, including
brownfield solar projects and community solar projects,
will help to diversify Illinois electricity supply, avoid
and reduce pollution, reduce peak demand, and enhance

SB2248 - 4 - LRB102 17406 SPS 22899 b
public health and well-being of Illinois residents.
(7) Developing community solar projects in Illinois
will help to expand access to renewable energy resources
to more Illinois residents.
(8) Developing brownfield solar projects in Illinois
will help return blighted or contaminated land to
productive use while enhancing public health and the
well-being of Illinois residents, including those in
environmental justice communities.
(9) Energy efficiency, demand-response measures, zero
emission energy, and renewable energy are resources
currently underused in Illinois. These resources should be
used, when cost effective, to reduce costs to consumers,
improve reliability, and improve environmental quality and
public health.
(10) The State should encourage the use of advanced
clean coal technologies that capture and sequester carbon
dioxide emissions to advance environmental protection
goals and to demonstrate the viability of coal and
coal-derived fuels in a carbon-constrained economy.
(11) The General Assembly enacted Public Act 96-0795
to reform the State's purchasing processes, recognizing
that government procurement is susceptible to abuse if
structural and procedural safeguards are not in place to
ensure independence, insulation, oversight, and
transparency.

SB2248 - 5 - LRB102 17406 SPS 22899 b
(12) The principles that underlie the procurement
reform legislation apply also in the context of power
purchasing.
(13) To ensure that the benefits of installing
renewable resources are available to all Illinois
residents and located across the State, subject to
appropriation, it is necessary for the Illinois Power
Agency to provide public information and educational
resources on how residents can benefit from the expansion
of renewable energy in Illinois and participate in the
Illinois Solar for All Program established in Section 1-56
of this Act, the Adjustable Block Program established in
Section 1-75 of this Act, the job training programs
established by paragraph (1) of subsection (a) of Section
16-108.12 of the Public Utilities Act, and the programs
and resources established by the Clean Jobs Workforce and
Contractor Equity Act.
The General Assembly therefore finds that it is necessary
to create the Illinois Power Agency and that the goals and
objectives of that Agency are to accomplish each of the
following:
(A) Develop electricity procurement plans to ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability, for electric utilities that on December

SB2248 - 6 - LRB102 17406 SPS 22899 b
31, 2005 provided electric service to at least 100,000
customers in Illinois and for small multi-jurisdictional
electric utilities that (i) on December 31, 2005 served
less than 100,000 customers in Illinois and (ii) request a
procurement plan for their Illinois jurisdictional load.
The procurement plan shall be updated on an annual basis
and shall include renewable energy resources and,
beginning with the delivery year commencing June 1, 2017,
zero emission credits from zero emission facilities
sufficient to achieve the standards specified in this Act.
(B) Conduct the competitive procurement processes
identified in this Act.
(C) Develop electric generation and co-generation
facilities that use indigenous coal or renewable
resources, or both, financed with bonds issued by the
Illinois Finance Authority.
(D) Supply electricity from the Agency's facilities at
cost to one or more of the following: municipal electric
systems, governmental aggregators, or rural electric
cooperatives in Illinois.
(E) Ensure that the process of power procurement is
conducted in an ethical and transparent fashion, immune
from improper influence.
(F) Continue to review its policies and practices to
determine how best to meet its mission of providing the
lowest cost power to the greatest number of people, at any

SB2248 - 7 - LRB102 17406 SPS 22899 b
given point in time, in accordance with applicable law.
(G) Operate in a structurally insulated, independent,
and transparent fashion so that nothing impedes the
Agency's mission to secure power at the best prices the
market will bear, provided that the Agency meets all
applicable legal requirements.
(H) Implement renewable energy procurement and
training programs throughout the State to diversify
Illinois electricity supply, improve reliability, avoid
and reduce pollution, reduce peak demand, and enhance
public health and well-being of Illinois residents,
including low-income residents.
(Source: P.A. 99-906, eff. 6-1-17.)
(20 ILCS 3855/1-10)
Sec. 1-10. Definitions.
"Agency" means the Illinois Power Agency.
"Agency loan agreement" means any agreement pursuant to
which the Illinois Finance Authority agrees to loan the
proceeds of revenue bonds issued with respect to a project to
the Agency upon terms providing for loan repayment
installments at least sufficient to pay when due all principal
of, interest and premium, if any, on those revenue bonds, and
providing for maintenance, insurance, and other matters in
respect of the project.
"Authority" means the Illinois Finance Authority.

SB2248 - 8 - LRB102 17406 SPS 22899 b
"Brownfield site photovoltaic project" means photovoltaics
that are:
(1) interconnected to an electric utility as defined
in this Section, a municipal utility as defined in this
Section, a public utility as defined in Section 3-105 of
the Public Utilities Act, or an electric cooperative, as
defined in Section 3-119 of the Public Utilities Act; and
(2) located at a site that is regulated by any of the
following entities under the following programs:
(A) the United States Environmental Protection
Agency under the federal Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as
amended;
(B) the United States Environmental Protection
Agency under the Corrective Action Program of the
federal Resource Conservation and Recovery Act, as
amended;
(C) the Illinois Environmental Protection Agency
under the Illinois Site Remediation Program; or
(D) the Illinois Environmental Protection Agency
under the Illinois Solid Waste Program.
"Clean coal facility" means an electric generating
facility that uses primarily coal as a feedstock and that
captures and sequesters carbon dioxide emissions at the
following levels: at least 50% of the total carbon dioxide
emissions that the facility would otherwise emit if, at the

SB2248 - 9 - LRB102 17406 SPS 22899 b
time construction commences, the facility is scheduled to
commence operation before 2016, at least 70% of the total
carbon dioxide emissions that the facility would otherwise
emit if, at the time construction commences, the facility is
scheduled to commence operation during 2016 or 2017, and at
least 90% of the total carbon dioxide emissions that the
facility would otherwise emit if, at the time construction
commences, the facility is scheduled to commence operation
after 2017. The power block of the clean coal facility shall
not exceed allowable emission rates for sulfur dioxide,
nitrogen oxides, carbon monoxide, particulates and mercury for
a natural gas-fired combined-cycle facility the same size as
and in the same location as the clean coal facility at the time
the clean coal facility obtains an approved air permit. All
coal used by a clean coal facility shall have high volatile
bituminous rank and greater than 1.7 pounds of sulfur per
million btu content, unless the clean coal facility does not
use gasification technology and was operating as a
conventional coal-fired electric generating facility on June
1, 2009 (the effective date of Public Act 95-1027).
"Clean coal SNG brownfield facility" means a facility that
(1) has commenced construction by July 1, 2015 on an urban
brownfield site in a municipality with at least 1,000,000
residents; (2) uses a gasification process to produce
substitute natural gas; (3) uses coal as at least 50% of the
total feedstock over the term of any sourcing agreement with a

SB2248 - 10 - LRB102 17406 SPS 22899 b
utility and the remainder of the feedstock may be either
petroleum coke or coal, with all such coal having a high
bituminous rank and greater than 1.7 pounds of sulfur per
million Btu content unless the facility reasonably determines
that it is necessary to use additional petroleum coke to
deliver additional consumer savings, in which case the
facility shall use coal for at least 35% of the total feedstock
over the term of any sourcing agreement; and (4) captures and
sequesters at least 85% of the total carbon dioxide emissions
that the facility would otherwise emit.
"Clean coal SNG facility" means a facility that uses a
gasification process to produce substitute natural gas, that
sequesters at least 90% of the total carbon dioxide emissions
that the facility would otherwise emit, that uses at least 90%
coal as a feedstock, with all such coal having a high
bituminous rank and greater than 1.7 pounds of sulfur per
million btu content, and that has a valid and effective permit
to construct emission sources and air pollution control
equipment and approval with respect to the federal regulations
for Prevention of Significant Deterioration of Air Quality
(PSD) for the plant pursuant to the federal Clean Air Act;
provided, however, a clean coal SNG brownfield facility shall
not be a clean coal SNG facility.
"Commission" means the Illinois Commerce Commission.
"Community renewable generation project" means an electric
generating facility that:

SB2248 - 11 - LRB102 17406 SPS 22899 b
(1) is powered by wind, solar thermal energy,
photovoltaic cells or panels, biodiesel, crops and
untreated and unadulterated organic waste biomass, tree
waste, and hydropower that does not involve new
construction or significant expansion of hydropower dams;
(2) is interconnected at the distribution system level
of an electric utility as defined in this Section, a
municipal utility as defined in this Section that owns or
operates electric distribution facilities, a public
utility as defined in Section 3-105 of the Public
Utilities Act, or an electric cooperative, as defined in
Section 3-119 of the Public Utilities Act;
(3) credits the value of electricity generated by the
facility to the subscribers of the facility; and
(4) is limited in nameplate capacity to less than or
equal to 5,000 2,000 kilowatts.
"Costs incurred in connection with the development and
construction of a facility" means:
(1) the cost of acquisition of all real property,
fixtures, and improvements in connection therewith and
equipment, personal property, and other property, rights,
and easements acquired that are deemed necessary for the
operation and maintenance of the facility;
(2) financing costs with respect to bonds, notes, and
other evidences of indebtedness of the Agency;
(3) all origination, commitment, utilization,

SB2248 - 12 - LRB102 17406 SPS 22899 b
facility, placement, underwriting, syndication, credit
enhancement, and rating agency fees;
(4) engineering, design, procurement, consulting,
legal, accounting, title insurance, survey, appraisal,
escrow, trustee, collateral agency, interest rate hedging,
interest rate swap, capitalized interest, contingency, as
required by lenders, and other financing costs, and other
expenses for professional services; and
(5) the costs of plans, specifications, site study and
investigation, installation, surveys, other Agency costs
and estimates of costs, and other expenses necessary or
incidental to determining the feasibility of any project,
together with such other expenses as may be necessary or
incidental to the financing, insuring, acquisition, and
construction of a specific project and starting up,
commissioning, and placing that project in operation.
"Delivery services" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Delivery year" means the consecutive 12-month period
beginning June 1 of a given year and ending May 31 of the
following year.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of the Illinois Power
Agency.
"Demand-response" means measures that decrease peak

SB2248 - 13 - LRB102 17406 SPS 22899 b
electricity demand or shift demand from peak to off-peak
periods.
"Distributed renewable energy generation device" means a
device that is:
(1) powered by wind, solar thermal energy,
photovoltaic cells or panels, biodiesel, crops and
untreated and unadulterated organic waste biomass, tree
waste, and hydropower that does not involve new
construction or significant expansion of hydropower dams;
(2) interconnected at the distribution system level of
either an electric utility as defined in this Section, a
municipal utility as defined in this Section that owns or
operates electric distribution facilities, or a rural
electric cooperative as defined in Section 3-119 of the
Public Utilities Act;
(3) located on the customer side of the customer's
electric meter and is primarily used to offset that
customer's electricity load; and
(4) limited in nameplate capacity to less than or
equal to 2,000 kilowatts.
"Energy efficiency" means measures that reduce the amount
of electricity or natural gas consumed in order to achieve a
given end use. "Energy efficiency" includes voltage
optimization measures that optimize the voltage at points on
the electric distribution voltage system and thereby reduce
electricity consumption by electric customers' end use

SB2248 - 14 - LRB102 17406 SPS 22899 b
devices. "Energy efficiency" also includes measures that
reduce the total Btus of electricity, natural gas, and other
fuels needed to meet the end use or uses.
"Electric utility" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Facility" means an electric generating unit or a
co-generating unit that produces electricity along with
related equipment necessary to connect the facility to an
electric transmission or distribution system.
"Governmental aggregator" means one or more units of local
government that individually or collectively procure
electricity to serve residential retail electrical loads
located within its or their jurisdiction.
"Local government" means a unit of local government as
defined in Section 1 of Article VII of the Illinois
Constitution.
"Municipality" means a city, village, or incorporated
town.
"Municipal utility" means a public utility owned and
operated by any subdivision or municipal corporation of this
State.
"Nameplate capacity" means the aggregate inverter
nameplate capacity in kilowatts AC.
"Person" means any natural person, firm, partnership,
corporation, either domestic or foreign, company, association,
limited liability company, joint stock company, or association

SB2248 - 15 - LRB102 17406 SPS 22899 b
and includes any trustee, receiver, assignee, or personal
representative thereof.
"Project" means the planning, bidding, and construction of
a facility.
"Public utility" has the same definition as found in
Section 3-105 of the Public Utilities Act.
"Real property" means any interest in land together with
all structures, fixtures, and improvements thereon, including
lands under water and riparian rights, any easements,
covenants, licenses, leases, rights-of-way, uses, and other
interests, together with any liens, judgments, mortgages, or
other claims or security interests related to real property.
"Renewable energy credit" means a tradable credit that
represents the environmental attributes of one megawatt hour
of energy produced from a renewable energy resource.
"Renewable energy resources" includes energy and its
associated renewable energy credit or renewable energy credits
from wind, solar thermal energy, photovoltaic cells and
panels, biodiesel, anaerobic digestion, crops and untreated
and unadulterated organic waste biomass, tree waste, and
hydropower that does not involve new construction or
significant expansion of hydropower dams. For purposes of this
Act, landfill gas produced in the State is considered a
renewable energy resource. "Renewable energy resources" does
not include the incineration or burning of tires, garbage,
general household, institutional, and commercial waste,

SB2248 - 16 - LRB102 17406 SPS 22899 b
industrial lunchroom or office waste, landscape waste other
than tree waste, railroad crossties, utility poles, or
construction or demolition debris, other than untreated and
unadulterated waste wood.
"Retail customer" has the same definition as found in
Section 16-102 of the Public Utilities Act.
"Revenue bond" means any bond, note, or other evidence of
indebtedness issued by the Authority, the principal and
interest of which is payable solely from revenues or income
derived from any project or activity of the Agency.
"Sequester" means permanent storage of carbon dioxide by
injecting it into a saline aquifer, a depleted gas reservoir,
or an oil reservoir, directly or through an enhanced oil
recovery process that may involve intermediate storage,
regardless of whether these activities are conducted by a
clean coal facility, a clean coal SNG facility, a clean coal
SNG brownfield facility, or a party with which a clean coal
facility, clean coal SNG facility, or clean coal SNG
brownfield facility has contracted for such purposes.
"Service area" has the same definition as found in Section
16-102 of the Public Utilities Act.
"Sourcing agreement" means (i) in the case of an electric
utility, an agreement between the owner of a clean coal
facility and such electric utility, which agreement shall have
terms and conditions meeting the requirements of paragraph (3)
of subsection (d) of Section 1-75, (ii) in the case of an

SB2248 - 17 - LRB102 17406 SPS 22899 b
alternative retail electric supplier, an agreement between the
owner of a clean coal facility and such alternative retail
electric supplier, which agreement shall have terms and
conditions meeting the requirements of Section 16-115(d)(5) of
the Public Utilities Act, and (iii) in case of a gas utility,
an agreement between the owner of a clean coal SNG brownfield
facility and the gas utility, which agreement shall have the
terms and conditions meeting the requirements of subsection
(h-1) of Section 9-220 of the Public Utilities Act.
"Subscriber" means a person who (i) takes delivery service
from an electric utility, and (ii) has a subscription of no
less than 200 watts to a community renewable generation
project that is located in the electric utility's service
area. No subscriber's subscriptions may total more than 40% of
the nameplate capacity of an individual community renewable
generation project. Entities that are affiliated by virtue of
a common parent shall not represent multiple subscriptions
that total more than 40% of the nameplate capacity of an
individual community renewable generation project.
"Subscription" means an interest in a community renewable
generation project expressed in kilowatts, which is sized
primarily to offset part or all of the subscriber's
electricity usage.
"Substitute natural gas" or "SNG" means a gas manufactured
by gasification of hydrocarbon feedstock, which is
substantially interchangeable in use and distribution with

SB2248 - 18 - LRB102 17406 SPS 22899 b
conventional natural gas.
"Total resource cost test" or "TRC test" means a standard
that is met if, for an investment in energy efficiency or
demand-response measures, the benefit-cost ratio is greater
than one. The benefit-cost ratio is the ratio of the net
present value of the total benefits of the program to the net
present value of the total costs as calculated over the
lifetime of the measures. A total resource cost test compares
the sum of avoided electric utility costs, representing the
benefits that accrue to the system and the participant in the
delivery of those efficiency measures and including avoided
costs associated with reduced use of natural gas or other
fuels, avoided costs associated with reduced water
consumption, and avoided costs associated with reduced
operation and maintenance costs, as well as other quantifiable
societal benefits, to the sum of all incremental costs of
end-use measures that are implemented due to the program
(including both utility and participant contributions), plus
costs to administer, deliver, and evaluate each demand-side
program, to quantify the net savings obtained by substituting
the demand-side program for supply resources. In calculating
avoided costs of power and energy that an electric utility
would otherwise have had to acquire, reasonable estimates
shall be included of financial costs likely to be imposed by
future regulations and legislation on emissions of greenhouse
gases. In discounting future societal costs and benefits for

SB2248 - 19 - LRB102 17406 SPS 22899 b
the purpose of calculating net present values, a societal
discount rate based on actual, long-term Treasury bond yields
should be used. Notwithstanding anything to the contrary, the
TRC test shall not include or take into account a calculation
of market price suppression effects or demand reduction
induced price effects.
"Utility-scale solar project" means an electric generating
facility that:
(1) generates electricity using photovoltaic cells;
and
(2) has a nameplate capacity that is greater than
2,000 kilowatts.
"Utility-scale wind project" means an electric generating
facility that:
(1) generates electricity using wind; and
(2) has a nameplate capacity that is greater than
2,000 kilowatts.
"Zero emission credit" means a tradable credit that
represents the environmental attributes of one megawatt hour
of energy produced from a zero emission facility.
"Zero emission facility" means a facility that: (1) is
fueled by nuclear power; and (2) is interconnected with PJM
Interconnection, LLC or the Midcontinent Independent System
Operator, Inc., or their successors.
(Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17.)

SB2248 - 20 - LRB102 17406 SPS 22899 b
(20 ILCS 3855/1-20)
Sec. 1-20. General powers and duties of the Agency.
(a) The Agency is authorized to do each of the following:
(1) Develop electricity procurement plans to ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability, for electric utilities that on December
31, 2005 provided electric service to at least 100,000
customers in Illinois and for small multi-jurisdictional
electric utilities that (A) on December 31, 2005 served
less than 100,000 customers in Illinois and (B) request a
procurement plan for their Illinois jurisdictional load.
Except as provided in paragraph (1.5) of this subsection
(a), the electricity procurement plans shall be updated on
an annual basis and shall include electricity generated
from renewable resources sufficient to achieve the
standards specified in this Act. Beginning with the
delivery year commencing June 1, 2017, develop procurement
plans to include zero emission credits generated from zero
emission facilities sufficient to achieve the standards
specified in this Act. Beginning with the procurement for
the delivery year commencing June 1, 2022, the Agency
shall for each year develop a plan, as part of its
procurement plan, to conduct a procurement of capacity
from qualified resources needed to meet capacity

SB2248 - 21 - LRB102 17406 SPS 22899 b
requirements of the retail customers of electric utilities
that serve more than 3,000,000 retail customers and are
located in the PJM Interconnection, subject to the open
access tariff and manuals of PJM Interconnection and
approved by the Federal Energy Regulatory Commission. The
capacity procurement plan shall be updated annually and
shall include electricity generated from renewable
resources sufficient to achieve the renewable portfolio
standards as specified in this Act.
(1.5) Develop a long-term renewable resources
procurement plan in accordance with subsection (c) of
Section 1-75 of this Act for renewable energy credits in
amounts sufficient to achieve the standards specified in
this Act for delivery years commencing June 1, 2017 and
for the programs and renewable energy credits specified in
Section 1-56 of this Act. Electricity procurement plans
for delivery years commencing after May 31, 2017, shall
not include procurement of renewable energy resources.
(2) Conduct competitive procurement processes to
procure the supply resources identified in the electricity
procurement plan, pursuant to Section 16-111.5 of the
Public Utilities Act, and, for the delivery year
commencing June 1, 2017, conduct procurement processes to
procure zero emission credits from zero emission
facilities, under subsection (d-5) of Section 1-75 of this
Act.

SB2248 - 22 - LRB102 17406 SPS 22899 b
(2.5) Beginning with the procurement for the 2017
delivery year, conduct competitive procurement processes
and implement programs to procure renewable energy credits
identified in the long-term renewable resources
procurement plan developed and approved under subsection
(c) of Section 1-75 of this Act and Section 16-111.5 of the
Public Utilities Act.
(3) Develop electric generation and co-generation
facilities that use indigenous coal or renewable
resources, or both, financed with bonds issued by the
Illinois Finance Authority.
(4) Supply electricity from the Agency's facilities at
cost to one or more of the following: municipal electric
systems, governmental aggregators, or rural electric
cooperatives in Illinois.
(b) Except as otherwise limited by this Act, the Agency
has all of the powers necessary or convenient to carry out the
purposes and provisions of this Act, including without
limitation, each of the following:
(1) To have a corporate seal, and to alter that seal at
pleasure, and to use it by causing it or a facsimile to be
affixed or impressed or reproduced in any other manner.
(2) To use the services of the Illinois Finance
Authority necessary to carry out the Agency's purposes.
(3) To negotiate and enter into loan agreements and
other agreements with the Illinois Finance Authority.

SB2248 - 23 - LRB102 17406 SPS 22899 b
(4) To obtain and employ personnel and hire
consultants that are necessary to fulfill the Agency's
purposes, and to make expenditures for that purpose within
the appropriations for that purpose.
(5) To purchase, receive, take by grant, gift, devise,
bequest, or otherwise, lease, or otherwise acquire, own,
hold, improve, employ, use, and otherwise deal in and
with, real or personal property whether tangible or
intangible, or any interest therein, within the State.
(6) To acquire real or personal property, whether
tangible or intangible, including without limitation
property rights, interests in property, franchises,
obligations, contracts, and debt and equity securities,
and to do so by the exercise of the power of eminent domain
in accordance with Section 1-21; except that any real
property acquired by the exercise of the power of eminent
domain must be located within the State.
(7) To sell, convey, lease, exchange, transfer,
abandon, or otherwise dispose of, or mortgage, pledge, or
create a security interest in, any of its assets,
properties, or any interest therein, wherever situated.
(8) To purchase, take, receive, subscribe for, or
otherwise acquire, hold, make a tender offer for, vote,
employ, sell, lend, lease, exchange, transfer, or
otherwise dispose of, mortgage, pledge, or grant a
security interest in, use, and otherwise deal in and with,

SB2248 - 24 - LRB102 17406 SPS 22899 b
bonds and other obligations, shares, or other securities
(or interests therein) issued by others, whether engaged
in a similar or different business or activity.
(9) To make and execute agreements, contracts, and
other instruments necessary or convenient in the exercise
of the powers and functions of the Agency under this Act,
including contracts with any person, including personal
service contracts, or with any local government, State
agency, or other entity; and all State agencies and all
local governments are authorized to enter into and do all
things necessary to perform any such agreement, contract,
or other instrument with the Agency. No such agreement,
contract, or other instrument shall exceed 40 years.
(10) To lend money, invest and reinvest its funds in
accordance with the Public Funds Investment Act, and take
and hold real and personal property as security for the
payment of funds loaned or invested.
(11) To borrow money at such rate or rates of interest
as the Agency may determine, issue its notes, bonds, or
other obligations to evidence that indebtedness, and
secure any of its obligations by mortgage or pledge of its
real or personal property, machinery, equipment,
structures, fixtures, inventories, revenues, grants, and
other funds as provided or any interest therein, wherever
situated.
(12) To enter into agreements with the Illinois

SB2248 - 25 - LRB102 17406 SPS 22899 b
Finance Authority to issue bonds whether or not the income
therefrom is exempt from federal taxation.
(13) To procure insurance against any loss in
connection with its properties or operations in such
amount or amounts and from such insurers, including the
federal government, as it may deem necessary or desirable,
and to pay any premiums therefor.
(14) To negotiate and enter into agreements with
trustees or receivers appointed by United States
bankruptcy courts or federal district courts or in other
proceedings involving adjustment of debts and authorize
proceedings involving adjustment of debts and authorize
legal counsel for the Agency to appear in any such
proceedings.
(15) To file a petition under Chapter 9 of Title 11 of
the United States Bankruptcy Code or take other similar
action for the adjustment of its debts.
(16) To enter into management agreements for the
operation of any of the property or facilities owned by
the Agency.
(17) To enter into an agreement to transfer and to
transfer any land, facilities, fixtures, or equipment of
the Agency to one or more municipal electric systems,
governmental aggregators, or rural electric agencies or
cooperatives, for such consideration and upon such terms
as the Agency may determine to be in the best interest of

SB2248 - 26 - LRB102 17406 SPS 22899 b
the residents citizens of Illinois.
(18) To enter upon any lands and within any building
whenever in its judgment it may be necessary for the
purpose of making surveys and examinations to accomplish
any purpose authorized by this Act.
(19) To maintain an office or offices at such place or
places in the State as it may determine.
(20) To request information, and to make any inquiry,
investigation, survey, or study that the Agency may deem
necessary to enable it effectively to carry out the
provisions of this Act.
(21) To accept and expend appropriations.
(22) To engage in any activity or operation that is
incidental to and in furtherance of efficient operation to
accomplish the Agency's purposes, including hiring
employees that the Director deems essential for the
operations of the Agency.
(23) To adopt, revise, amend, and repeal rules with
respect to its operations, properties, and facilities as
may be necessary or convenient to carry out the purposes
of this Act, subject to the provisions of the Illinois
Administrative Procedure Act and Sections 1-22 and 1-35 of
this Act.
(24) To establish and collect charges and fees as
described in this Act.
(25) To conduct competitive gasification feedstock

SB2248 - 27 - LRB102 17406 SPS 22899 b
procurement processes to procure the feedstocks for the
clean coal SNG brownfield facility in accordance with the
requirements of Section 1-78 of this Act.
(26) To review, revise, and approve sourcing
agreements and mediate and resolve disputes between gas
utilities and the clean coal SNG brownfield facility
pursuant to subsection (h-1) of Section 9-220 of the
Public Utilities Act.
(27) To request, review and accept proposals, execute
contracts, purchase renewable energy credits and otherwise
dedicate funds from the Illinois Power Agency Renewable
Energy Resources Fund to create and carry out the
objectives of the Illinois Solar for All program in
accordance with Section 1-56 of this Act.
(Source: P.A. 99-906, eff. 6-1-17.)
(20 ILCS 3855/1-56)
Sec. 1-56. Illinois Power Agency Renewable Energy
Resources Fund; Illinois Solar for All Program.
(a) The Illinois Power Agency Renewable Energy Resources
Fund is created as a special fund in the State treasury.
(b) The Illinois Power Agency Renewable Energy Resources
Fund shall be administered by the Agency as described in this
subsection (b), provided that the changes to this subsection
(b) made by this amendatory Act of the 99th General Assembly
shall not interfere with existing contracts under this

SB2248 - 28 - LRB102 17406 SPS 22899 b
Section.
(1) The Illinois Power Agency Renewable Energy
Resources Fund shall be used to purchase renewable energy
credits according to any approved procurement plan
developed by the Agency prior to June 1, 2017.
(2) The Illinois Power Agency Renewable Energy
Resources Fund shall also be used to create the Illinois
Solar for All Program, which shall include incentives for
low-income distributed generation and community solar
projects, and other associated approved expenditures. The
objectives of the Illinois Solar for All Program are to
bring photovoltaics to low-income communities in this
State in a manner that maximizes the development of new
photovoltaic generating facilities, to create a long-term,
low-income solar marketplace throughout this State, to
integrate, through interaction with stakeholders, with
existing energy efficiency initiatives, and to minimize
administrative costs. The Agency shall strive to ensure
that renewable energy credits procured through the
Illinois Solar for All Program and each of its subprograms
are purchased from projects across the breadth of
low-income and environmental justice communities in
Illinois, including both urban and rural communities, and
are neither concentrated in a few communities nor
excluding particular low-income or environmental justice
communities. The Agency shall include a description of its

SB2248 - 29 - LRB102 17406 SPS 22899 b
proposed approach to the design, administration,
implementation and evaluation of the Illinois Solar for
All Program, as part of the long-term renewable resources
procurement plan authorized by subsection (c) of Section
1-75 of this Act, and the program shall be designed to grow
the low-income solar market. The Agency or utility, as
applicable, shall purchase renewable energy credits from
the (i) photovoltaic distributed renewable energy
generation projects and (ii) community solar projects that
are procured under procurement processes authorized by the
long-term renewable resources procurement plans approved
by the Commission.
The Illinois Solar for All Program shall include the
program offerings described in subparagraphs (A) through
(E) (D) of this paragraph (2), which the Agency shall
implement through contracts with third-party providers
and, subject to appropriation, pay the approximate amounts
identified using monies available in the Illinois Power
Agency Renewable Energy Resources Fund. Each contract that
provides for the installation of solar facilities shall
provide that the solar facilities will produce energy and
economic benefits, at a level determined by the Agency to
be reasonable, for the participating low income customers.
The monies available in the Illinois Power Agency
Renewable Energy Resources Fund and not otherwise
committed to contracts executed under subsection (i) of

SB2248 - 30 - LRB102 17406 SPS 22899 b
this Section shall be allocated among the programs
described in this paragraph (2), as follows: 22.5% of
these funds shall be allocated to programs described in
subparagraphs subparagraph (A) and (E) of this paragraph
(2), 37.5% of these funds shall be allocated to programs
described in subparagraph (B) of this paragraph (2), 15%
of these funds shall be allocated to programs described in
subparagraph (C) of this paragraph (2), and 25% of these
funds, but in no event more than $50,000,000, shall be
allocated to programs described in subparagraph (D) of
this paragraph (2). The allocation of funds among
subparagraphs (A), (B), or (C), and (E) of this paragraph
(2) may be changed if the Agency or administrator, through
delegated authority, determines incentives in subparagraph
subparagraphs (A), (B), or (C), or (E) of this paragraph
(2) have not been adequately subscribed to fully utilize
the Illinois Power Agency Renewable Energy Resources Fund.
The determination of reallocation shall include
consideration of input obtained input through a
stakeholder process. The program offerings described in
subparagraphs (A) through (E) (D) of this paragraph (2)
shall also be implemented through contracts funded from
such additional amounts as are allocated to one or more of
the programs in the long-term renewable resources
procurement plans as specified in subsection (c) of
Section 1-75 of this Act and subparagraph (O) of paragraph

SB2248 - 31 - LRB102 17406 SPS 22899 b
(1) of such subsection (c).
Contracts that will be paid with funds in the Illinois
Power Agency Renewable Energy Resources Fund shall be
executed by the Agency. Contracts that will be paid with
funds collected by an electric utility shall be executed
by the electric utility.
Contracts under the Illinois Solar for All Program
shall include an approach, as set forth in the long-term
renewable resources procurement plans, to ensure the
wholesale market value of the energy is credited to
participating low-income customers or organizations and to
ensure tangible economic benefits flow directly to program
participants, except in the case of low-income
multi-family housing where the low-income customer does
not directly pay for energy. Priority shall be given to
projects that demonstrate meaningful involvement of
low-income community members in designing the initial
proposals. Acceptable proposals to implement projects must
demonstrate the applicant's ability to conduct initial
community outreach, education, and recruitment of
low-income participants in the community. Projects must
include job training opportunities if available, and shall
endeavor to coordinate with the job training programs
described in paragraph (1) of subsection (a) of Section
16-108.12 of the Public Utilities Act.
The Agency shall make every effort to ensure that

SB2248 - 32 - LRB102 17406 SPS 22899 b
small and emerging businesses, particularly those located
in low-income and environmental justice communities are
able to participate in the Illinois Solar for All Program.
These efforts may include, but shall not be limited to,
proactive support from the program administrator,
different or preferred access to subprograms and
administrator-identified customers or grassroots
education provider-identified customers, and different
incentive levels. The Agency shall report on progress and
barriers to participation of small and emerging businesses
in the Illinois Solar for All Program at least once a year.
The report shall be made available on the Agency's website
and, in years when the Agency is updating its long-term
renewable resources procurement plan, included in that
plan.
(A) Low-income single-family and small multifamily
solar distributed generation incentive. This program
will provide incentives to low-income customers,
either directly or through solar providers, to
increase the participation of low-income households in
photovoltaic on-site distributed generation at
residential buildings containing one to 4 units.
Companies participating in this program that install
solar panels shall commit to hiring job trainees for a
portion of their low-income installations, and an
administrator shall facilitate partnering the

SB2248 - 33 - LRB102 17406 SPS 22899 b
companies that install solar panels with entities that
provide solar panel installation job training. It is a
goal of this program that a minimum of 25% of the
incentives for this program be allocated to projects
located within environmental justice communities. The
Agency shall reserve a portion of this program for
projects that promote energy sovereignty through
ownership of projects by low-income households,
not-for-profit organizations providing services to
low-income households, affordable housing owners, or
community-based limited liability companies providing
services to low-income households. To count as
promoting energy sovereignty, 49% of the ownership
interest of the project must be held by low-income
households, not-for-profit organizations providing
direct services to low-income households, affordable
housing owners, or community-based limited liability
companies providing services to low-income households,
by no later than 6 years after the device is
interconnected at the distribution system level of the
utility and energized. Incentives for projects that
promote energy sovereignty may be higher than
incentives for equivalent projects that do not promote
energy sovereignty under this same program. Contracts
entered into under this paragraph may be entered into
with an entity that will develop and administer the

SB2248 - 34 - LRB102 17406 SPS 22899 b
program and shall also include contracts for renewable
energy credits from the photovoltaic distributed
generation that is the subject of the program, as set
forth in the long-term renewable resources procurement
plan.
(B) Low-Income Community Solar Project Initiative.
Incentives shall be offered to low-income customers,
either directly or through developers, to increase the
participation of low-income subscribers of community
solar projects. The developer of each project shall
identify its partnership with community stakeholders
regarding the location, development, and participation
in the project, provided that nothing shall preclude a
project from including an anchor tenant that does not
qualify as low-income. Incentives should also be
offered to community solar projects that are 100%
low-income subscriber owned, which includes low-income
households, not-for-profit organizations, and
affordable housing owners. Companies participating in
this program that develop or install solar projects
shall commit to hiring job trainees for a portion of
their low-income installations, and an administrator
shall facilitate partnering the companies that install
solar projects with entities that provide solar
installation and related job training. It is a goal of
this program that a minimum of 25% of the incentives

SB2248 - 35 - LRB102 17406 SPS 22899 b
for this program be allocated to community
photovoltaic projects in environmental justice
communities. The Agency shall reserve a portion of
this program for projects that promote energy
sovereignty through ownership of projects by
low-income households, not-for-profit organizations
providing services to low-income households,
affordable housing owners, or community-based limited
liability companies providing services to low-income
households. To count as promoting energy sovereignty,
49% of the ownership interest of the project must be
held by low-income subscribers, not-for-profit
organizations providing direct services to low-income
households, affordable housing owners, or
community-based limited liability companies providing
services to low-income households, by no later than 6
years after the device is interconnected at the
distribution system level of the utility and
energized. Incentives for projects that promote energy
sovereignty may be higher than incentives for
equivalent projects that do not promote energy
sovereignty under this same program. Contracts entered
into under this paragraph may be entered into with
developers and shall also include contracts for
renewable energy credits related to the program.
(C) Incentives for non-profits and public

SB2248 - 36 - LRB102 17406 SPS 22899 b
facilities. Under this program funds shall be used to
support on-site photovoltaic distributed renewable
energy generation devices to serve the load associated
with not-for-profit customers and to support
photovoltaic distributed renewable energy generation
that uses photovoltaic technology to serve the load
associated with public sector customers taking service
at public buildings. Companies participating in this
program that develop or install solar projects shall
commit to hiring job trainees for a portion of their
low-income installations, and an administrator shall
facilitate partnering the companies that install solar
projects with entities that provide solar installation
and related job training. It is a goal of this program
that at least 25% of the incentives for this program be
allocated to projects located in environmental justice
communities. Contracts entered into under this
paragraph may be entered into with an entity that will
develop and administer the program or with developers
and shall also include contracts for renewable energy
credits related to the program.
(D) Low-Income Community Solar Pilot Projects.
Under this program, persons, including, but not
limited to, electric utilities, shall propose pilot
community solar projects. Community solar projects
proposed under this subparagraph (D) may exceed 2,000

SB2248 - 37 - LRB102 17406 SPS 22899 b
kilowatts in nameplate capacity, but the amount paid
per project under this program may not exceed
$20,000,000. Pilot projects must result in economic
benefits for the members of the community in which the
project will be located. The proposed pilot project
must include a partnership with at least one
community-based organization. Approved pilot projects
shall be competitively bid by the Agency, subject to
fair and equitable guidelines developed by the Agency.
Funding available under this subparagraph (D) may not
be distributed solely to a utility, and at least some
funds under this subparagraph (D) must include a
project partnership that includes community ownership
by the project subscribers. Contracts entered into
under this paragraph may be entered into with an
entity that will develop and administer the program or
with developers and shall also include contracts for
renewable energy credits related to the program. A
project proposed by a utility that is implemented
under this subparagraph (D) shall not be included in
the utility's rate base ratebase.
(E) Low-income large multifamily solar incentive.
This program shall provide incentives to low-income
customers, either directly or through solar providers,
to increase the participation of low-income households
in photovoltaic on-site distributed generation at

SB2248 - 38 - LRB102 17406 SPS 22899 b
residential buildings with 5 or more units. Companies
participating in this program that develop or install
solar projects shall commit to hiring job trainees for
a portion of their low-income installations, and an
administrator shall facilitate partnering the
companies that install solar projects with entities
that provide solar installation and related job
training. It is a goal of this program that a minimum
of 25% of the incentives for this program be allocated
to projects located within environmental justice
communities. The Agency shall reserve a portion of
this program for projects that promote energy
sovereignty through ownership of projects by
low-income households, not-for-profit organizations
providing services to low-income households,
affordable housing owners, or community-based limited
liability companies providing services to low-income
households. To count as promoting energy sovereignty,
49% of the ownership interest of the project must be
held by low-income households, not-for-profit
organizations providing direct services to low-income
households, affordable housing owners, or
community-based limited liability companies providing
services to low-income households, by no later than 6
years after the device is interconnected at the
distribution system level of the utility and

SB2248 - 39 - LRB102 17406 SPS 22899 b
energized. Incentives for projects that promote energy
sovereignty may be higher than incentives for
equivalent projects that do not promote energy
sovereignty under this same program. Contracts entered
into under this paragraph may be entered into with an
entity that will develop and administer the program
and shall include contracts for renewable energy
credits from the photovoltaic distributed generation
that is the subject of the program, as set forth in the
long-term renewable resources procurement plan.
The requirement that a qualified person, as defined in
paragraph (1) of subsection (i) of this Section, install
photovoltaic devices does not apply to the Illinois Solar
for All Program described in this subsection (b).
(3) Costs associated with the Illinois Solar for All
Program and its components described in paragraph (2) of
this subsection (b), including, but not limited to, costs
associated with procuring experts, consultants, and the
program administrator referenced in this subsection (b)
and related incremental costs, costs related to income
verification and facilitating customer participation in
the program, and costs related to the evaluation of the
Illinois Solar for All Program, may be paid for using
monies in the Illinois Power Agency Renewable Energy
Resources Fund, but the Agency or program administrator
shall strive to minimize costs in the implementation of

SB2248 - 40 - LRB102 17406 SPS 22899 b
the program. The Agency shall purchase renewable energy
credits from generation that is the subject of a contract
under subparagraphs (A) through (E) (D) of this paragraph
(2) of this subsection (b), and may pay for such renewable
energy credits through an upfront payment per installed
kilowatt of nameplate capacity paid once the device is
interconnected at the distribution system level of the
utility and is energized. The payment shall be in exchange
for an assignment of all renewable energy credits
generated by the system during the first 15 years of
operation and shall be structured to overcome barriers to
participation in the solar market by the low-income
community. The incentives provided for in this Section may
be implemented through the pricing of renewable energy
credits where the prices paid for the credits are higher
than the prices from programs offered under subsection (c)
of Section 1-75 of this Act to account for the incentives.
The Agency shall ensure collaboration with community
agencies, and allocate up to 5% of the funds available
under the Illinois Solar for All Program to
community-based groups to assist in grassroots education
efforts related to the Illinois Solar for All Program. The
Agency shall retire any renewable energy credits purchased
from this program and the credits shall count towards the
obligation under subsection (c) of Section 1-75 of this
Act for the electric utility to which the project is

SB2248 - 41 - LRB102 17406 SPS 22899 b
interconnected. The Agency may combine the funding for the
Adjustable Block Program established in subparagraph (K)
of paragraph (1) of subsection (c) of Section 1-75 and the
Illinois Solar for All Program to purchase renewable
energy credits from new photovoltaic projects that would
be eligible for either program so long as: the annual
ratepayer funds collected to purchase renewable resources
pursuant to subsection (c) of Section 1-75 is at least
double the amount collected in the 2019-2020 delivery
year, no more than 20% of any individual block within the
Adjustable Block Program is allocated to Solar for
All-eligible projects, and the funding sources for both
programs are the same for projects so funded. Any
renewable energy credits purchased from this program in
combination with the Adjustable Block Program shall count
toward the obligation for new photovoltaic projects under
subparagraph (C) of paragraph (1) of subsection (c) of
Section 1-75 of this Act. Any photovoltaic projects
selected for this program in combination with the
Adjustable Block Program are subject to the requirements
of the Illinois Solar for All Program and may receive
Illinois Solar for All Program pricing, with the Illinois
Solar for All Program budget covering the difference
between the renewable energy credit price from the
currently open block of the Adjustable Block Program and
the Solar for All renewable energy credit price. Illinois

SB2248 - 42 - LRB102 17406 SPS 22899 b
Solar for All subprograms providing funding for
installation of distributed renewable energy generation
devices shall use funding in this manner from Adjustable
Block Program distributed renewable energy generation
device blocks. The Illinois Solar for All Low-Income
Community Solar subprogram shall use funding in this
manner from the Adjustable Block Program community
renewable generation project blocks, if such blocks are
legally authorized. If no Adjustable Block Program
community renewable generation project block is currently
legally authorized and if a competitively procured
Community Solar Program is legally authorized under
Section 1-75 of this Act, then (i) a portion of the
utility-held renewable resources budget allocated by the
Agency to such competitive Community Solar Program each
year shall be reserved for the Solar for All Low-Income
Community Solar subprogram as if such budget came from an
Adjustable Block Program block for purposes of this
paragraph (3) and (ii) the average renewable energy credit
price of Community Solar Program selected projects from
the prior delivery year (or a shorter period, if a full
delivery year of the Community Solar Program has not been
completed) shall be used for allocating funding to the
Solar for All Low-Income Community Solar subprogram in
lieu of the Adjustable Block Program renewable energy
credit block price mentioned earlier in this paragraph

SB2248 - 43 - LRB102 17406 SPS 22899 b
(3). The Agency shall try to manage program capacities and
budgets to make the fullest use of this option to
accommodate Solar for All project applications.
(4) The Agency shall, consistent with the requirements
of this subsection (b), propose the Illinois Solar for All
Program terms, conditions, and requirements, including the
prices to be paid for renewable energy credits, and which
prices may be determined through a formula, through the
development, review, and approval of the Agency's
long-term renewable resources procurement plan described
in subsection (c) of Section 1-75 of this Act and Section
16-111.5 of the Public Utilities Act. In the course of the
Commission proceeding initiated to review and approve the
plan, including the Illinois Solar for All Program
proposed by the Agency, a party may propose an additional
low-income solar or solar incentive program, or
modifications to the programs proposed by the Agency, and
the Commission may approve an additional program, or
modifications to the Agency's proposed program, if the
additional or modified program more effectively maximizes
the benefits to low-income customers after taking into
account all relevant factors, including, but not limited
to, the extent to which a competitive market for
low-income solar has developed. Following the Commission's
approval of the Illinois Solar for All Program, the Agency
or a party may propose adjustments to the program terms,

SB2248 - 44 - LRB102 17406 SPS 22899 b
conditions, and requirements, including the price offered
to new systems, to ensure the long-term viability and
success of the program. The Commission shall review and
approve any modifications to the program through the plan
revision process described in Section 16-111.5 of the
Public Utilities Act.
(5) The Agency shall issue a request for
qualifications for a third-party program administrator or
administrators to administer all or a portion of the
Illinois Solar for All Program. The third-party program
administrator shall be chosen through a competitive bid
process based on selection criteria and requirements
developed by the Agency, including, but not limited to,
experience in administering low-income energy programs and
overseeing statewide clean energy or energy efficiency
services. If the Agency retains a program administrator or
administrators to implement all or a portion of the
Illinois Solar for All Program, each administrator shall
periodically submit reports to the Agency and Commission
for each program that it administers, at appropriate
intervals to be identified by the Agency in its long-term
renewable resources procurement plan, provided that the
reporting interval is at least quarterly. Administration
of the Illinois Solar for All Program shall include
facilitation of the partnering of companies that develop
or install solar projects through this program or any

SB2248 - 45 - LRB102 17406 SPS 22899 b
other Illinois program with graduates of Illinois-based
job training programs, particularly graduates who reside
in environmental justice communities.
(6) The long-term renewable resources procurement plan
shall also provide for an independent evaluation of the
Illinois Solar for All Program. At least every 2 years,
the Agency shall select an independent evaluator to review
and report on the Illinois Solar for All Program and the
performance of the third-party program administrator of
the Illinois Solar for All Program. The evaluation shall
be based on objective criteria developed through a public
stakeholder process. The process shall include feedback
and participation from Illinois Solar for All Program
stakeholders, including participants and organizations in
environmental justice and historically underserved
communities. The report shall include a summary of the
evaluation of the Illinois Solar for All Program based on
the stakeholder developed objective criteria. The report
shall include the number of projects installed; the total
installed capacity in kilowatts; the average cost per
kilowatt of installed capacity to the extent reasonably
obtainable by the Agency; the number of jobs or job
opportunities created; economic, social, and environmental
benefits created; and the total administrative costs
expended by the Agency and program administrator to
implement and evaluate the program. The report shall be

SB2248 - 46 - LRB102 17406 SPS 22899 b
delivered to the Commission and posted on the Agency's
website, and shall be used, as needed, to revise the
Illinois Solar for All Program. The Commission shall also
consider the results of the evaluation as part of its
review of the long-term renewable resources procurement
plan under subsection (c) of Section 1-75 of this Act.
(7) If additional funding for the programs described
in this subsection (b) is available under subsection (k)
of Section 16-108 of the Public Utilities Act, then the
Agency shall submit a procurement plan to the Commission
no later than September 1, 2018, that proposes how the
Agency will procure programs on behalf of the applicable
utility. After notice and hearing, the Commission shall
approve, or approve with modification, the plan no later
than November 1, 2018.
(8) As part of the development and update of the
long-term renewable resources procurement plan authorized
by subsection (c) of Section 1-75 of this Act, the Agency
shall plan for: (A) actions to refer customers from the
Illinois Solar for All Program to electric and natural gas
income-qualified energy efficiency programs, and vice
versa, with the goal of increasing participation in both
of these programs; (B) effective procedures for data
sharing, as needed, to effectuate referrals between the
Illinois Solar for All Program and both electric and
natural gas income-qualified energy efficiency programs,

SB2248 - 47 - LRB102 17406 SPS 22899 b
including sharing customer information directly with the
utilities, as needed and appropriate; and (C) efforts to
identify any existing deferred maintenance programs for
which prospective Solar for All customers may be eligible
and connect prospective customers for whom deferred
maintenance is or may be a barrier to solar installation
to those programs.
As used in this subsection (b), "low-income households"
means persons and families whose income does not exceed 80% of
area median income, adjusted for family size and revised every
5 years.
For the purposes of this subsection (b), the Agency shall
define "environmental justice community" based on
methodologies and findings established by the Illinois Power
Agency and its Administrator for the Illinois Solar for All
Program in its initial long-term renewable resources
procurement plan and updated by the Illinois Power Agency and
its Administrator for the Illinois Solar for All Program as
part of the long-term renewable resources procurement plan
update as part of long-term renewable resources procurement
plan development, to ensure, to the extent practicable,
compatibility with other agencies' definitions and may, for
guidance, look to the definitions used by federal, state, or
local governments.
(b-5) After the receipt of all payments required by
Section 16-115D of the Public Utilities Act, no additional

SB2248 - 48 - LRB102 17406 SPS 22899 b
funds shall be deposited into the Illinois Power Agency
Renewable Energy Resources Fund unless directed by order of
the Commission.
(b-10) After the receipt of all payments required by
Section 16-115D of the Public Utilities Act and payment in
full of all contracts executed by the Agency under subsections
(b) and (i) of this Section, if the balance of the Illinois
Power Agency Renewable Energy Resources Fund is under $5,000,
then the Fund shall be inoperative and any remaining funds and
any funds submitted to the Fund after that date, shall be
transferred to the Supplemental Low-Income Energy Assistance
Fund for use in the Low-Income Home Energy Assistance Program,
as authorized by the Energy Assistance Act.
(c) (Blank).
(d) (Blank).
(e) All renewable energy credits procured using monies
from the Illinois Power Agency Renewable Energy Resources Fund
shall be permanently retired.
(f) The selection of one or more third-party program
managers or administrators, the selection of the independent
evaluator, and the procurement processes described in this
Section are exempt from the requirements of the Illinois
Procurement Code, under Section 20-10 of that Code.
(g) All disbursements from the Illinois Power Agency
Renewable Energy Resources Fund shall be made only upon
warrants of the Comptroller drawn upon the Treasurer as

SB2248 - 49 - LRB102 17406 SPS 22899 b
custodian of the Fund upon vouchers signed by the Director or
by the person or persons designated by the Director for that
purpose. The Comptroller is authorized to draw the warrant
upon vouchers so signed. The Treasurer shall accept all
warrants so signed and shall be released from liability for
all payments made on those warrants.
(h) The Illinois Power Agency Renewable Energy Resources
Fund shall not be subject to sweeps, administrative charges,
or chargebacks, including, but not limited to, those
authorized under Section 8h of the State Finance Act, that
would in any way result in the transfer of any funds from this
Fund to any other fund of this State or in having any such
funds utilized for any purpose other than the express purposes
set forth in this Section.
(h-5) The Agency may assess fees to each bidder to recover
the costs incurred in connection with a procurement process
held under this Section. Fees collected from bidders shall be
deposited into the Renewable Energy Resources Fund.
(i) Supplemental procurement process.
(1) Within 90 days after the effective date of this
amendatory Act of the 98th General Assembly, the Agency
shall develop a one-time supplemental procurement plan
limited to the procurement of renewable energy credits, if
available, from new or existing photovoltaics, including,
but not limited to, distributed photovoltaic generation.
Nothing in this subsection (i) requires procurement of

SB2248 - 50 - LRB102 17406 SPS 22899 b
wind generation through the supplemental procurement.
Renewable energy credits procured from new
photovoltaics, including, but not limited to, distributed
photovoltaic generation, under this subsection (i) must be
procured from devices installed by a qualified person. In
its supplemental procurement plan, the Agency shall
establish contractually enforceable mechanisms for
ensuring that the installation of new photovoltaics is
performed by a qualified person.
For the purposes of this paragraph (1), "qualified
person" means a person who performs installations of
photovoltaics, including, but not limited to, distributed
photovoltaic generation, and who: (A) has completed an
apprenticeship as a journeyman electrician from a United
States Department of Labor registered electrical
apprenticeship and training program and received a
certification of satisfactory completion; or (B) does not
currently meet the criteria under clause (A) of this
paragraph (1), but is enrolled in a United States
Department of Labor registered electrical apprenticeship
program, provided that the person is directly supervised
by a person who meets the criteria under clause (A) of this
paragraph (1); or (C) has obtained one of the following
credentials in addition to attesting to satisfactory
completion of at least 5 years or 8,000 hours of
documented hands-on electrical experience: (i) a North

SB2248 - 51 - LRB102 17406 SPS 22899 b
American Board of Certified Energy Practitioners (NABCEP)
Installer Certificate for Solar PV; (ii) an Underwriters
Laboratories (UL) PV Systems Installer Certificate; (iii)
an Electronics Technicians Association, International
(ETAI) Level 3 PV Installer Certificate; or (iv) an
Associate in Applied Science degree from an Illinois
Community College Board approved community college program
in renewable energy or a distributed generation
technology.
For the purposes of this paragraph (1), "directly
supervised" means that there is a qualified person who
meets the qualifications under clause (A) of this
paragraph (1) and who is available for supervision and
consultation regarding the work performed by persons under
clause (B) of this paragraph (1), including a final
inspection of the installation work that has been directly
supervised to ensure safety and conformity with applicable
codes.
For the purposes of this paragraph (1), "install"
means the major activities and actions required to
connect, in accordance with applicable building and
electrical codes, the conductors, connectors, and all
associated fittings, devices, power outlets, or
apparatuses mounted at the premises that are directly
involved in delivering energy to the premises' electrical
wiring from the photovoltaics, including, but not limited

SB2248 - 52 - LRB102 17406 SPS 22899 b
to, to distributed photovoltaic generation.
The renewable energy credits procured pursuant to the
supplemental procurement plan shall be procured using up
to $30,000,000 from the Illinois Power Agency Renewable
Energy Resources Fund. The Agency shall not plan to use
funds from the Illinois Power Agency Renewable Energy
Resources Fund in excess of the monies on deposit in such
fund or projected to be deposited into such fund. The
supplemental procurement plan shall ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable renewable energy resources (including credits)
at the lowest total cost over time, taking into account
any benefits of price stability.
To the extent available, 50% of the renewable energy
credits procured from distributed renewable energy
generation shall come from devices of less than 25
kilowatts in nameplate capacity. Procurement of renewable
energy credits from distributed renewable energy
generation devices shall be done through multi-year
contracts of no less than 5 years. The Agency shall create
credit requirements for counterparties. In order to
minimize the administrative burden on contracting
entities, the Agency shall solicit the use of third
parties to aggregate distributed renewable energy. These
third parties shall enter into and administer contracts
with individual distributed renewable energy generation

SB2248 - 53 - LRB102 17406 SPS 22899 b
device owners. An individual distributed renewable energy
generation device owner shall have the ability to measure
the output of his or her distributed renewable energy
generation device.
In developing the supplemental procurement plan, the
Agency shall hold at least one workshop open to the public
within 90 days after the effective date of this amendatory
Act of the 98th General Assembly and shall consider any
comments made by stakeholders or the public. Upon
development of the supplemental procurement plan within
this 90-day period, copies of the supplemental procurement
plan shall be posted and made publicly available on the
Agency's and Commission's websites. All interested parties
shall have 14 days following the date of posting to
provide comment to the Agency on the supplemental
procurement plan. All comments submitted to the Agency
shall be specific, supported by data or other detailed
analyses, and, if objecting to all or a portion of the
supplemental procurement plan, accompanied by specific
alternative wording or proposals. All comments shall be
posted on the Agency's and Commission's websites. Within
14 days following the end of the 14-day review period, the
Agency shall revise the supplemental procurement plan as
necessary based on the comments received and file its
revised supplemental procurement plan with the Commission
for approval.

SB2248 - 54 - LRB102 17406 SPS 22899 b
(2) Within 5 days after the filing of the supplemental
procurement plan at the Commission, any person objecting
to the supplemental procurement plan shall file an
objection with the Commission. Within 10 days after the
filing, the Commission shall determine whether a hearing
is necessary. The Commission shall enter its order
confirming or modifying the supplemental procurement plan
within 90 days after the filing of the supplemental
procurement plan by the Agency.
(3) The Commission shall approve the supplemental
procurement plan of renewable energy credits to be
procured from new or existing photovoltaics, including,
but not limited to, distributed photovoltaic generation,
if the Commission determines that it will ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable electric service in the form of renewable
energy credits at the lowest total cost over time, taking
into account any benefits of price stability.
(4) The supplemental procurement process under this
subsection (i) shall include each of the following
components:
(A) Procurement administrator. The Agency may
retain a procurement administrator in the manner set
forth in item (2) of subsection (a) of Section 1-75 of
this Act to conduct the supplemental procurement or
may elect to use the same procurement administrator

SB2248 - 55 - LRB102 17406 SPS 22899 b
administering the Agency's annual procurement under
Section 1-75.
(B) Procurement monitor. The procurement monitor
retained by the Commission pursuant to Section
16-111.5 of the Public Utilities Act shall:
(i) monitor interactions among the procurement
administrator and bidders and suppliers;
(ii) monitor and report to the Commission on
the progress of the supplemental procurement
process;
(iii) provide an independent confidential
report to the Commission regarding the results of
the procurement events;
(iv) assess compliance with the procurement
plan approved by the Commission for the
supplemental procurement process;
(v) preserve the confidentiality of supplier
and bidding information in a manner consistent
with all applicable laws, rules, regulations, and
tariffs;
(vi) provide expert advice to the Commission
and consult with the procurement administrator
regarding issues related to procurement process
design, rules, protocols, and policy-related
matters;
(vii) consult with the procurement

SB2248 - 56 - LRB102 17406 SPS 22899 b
administrator regarding the development and use of
benchmark criteria, standard form contracts,
credit policies, and bid documents; and
(viii) perform, with respect to the
supplemental procurement process, any other
procurement monitor duties specifically delineated
within subsection (i) of this Section.
(C) Solicitation, pre-qualification, and
registration of bidders. The procurement administrator
shall disseminate information to potential bidders to
promote a procurement event, notify potential bidders
that the procurement administrator may enter into a
post-bid price negotiation with bidders that meet the
applicable benchmarks, provide supply requirements,
and otherwise explain the competitive procurement
process. In addition to such other publication as the
procurement administrator determines is appropriate,
this information shall be posted on the Agency's and
the Commission's websites. The procurement
administrator shall also administer the
prequalification process, including evaluation of
credit worthiness, compliance with procurement rules,
and agreement to the standard form contract developed
pursuant to item (D) of this paragraph (4). The
procurement administrator shall then identify and
register bidders to participate in the procurement

SB2248 - 57 - LRB102 17406 SPS 22899 b
event.
(D) Standard contract forms and credit terms and
instruments. The procurement administrator, in
consultation with the Agency, the Commission, and
other interested parties and subject to Commission
oversight, shall develop and provide standard contract
forms for the supplier contracts that meet generally
accepted industry practices as well as include any
applicable State of Illinois terms and conditions that
are required for contracts entered into by an agency
of the State of Illinois. Standard credit terms and
instruments that meet generally accepted industry
practices shall be similarly developed. Contracts for
new photovoltaics shall include a provision attesting
that the supplier will use a qualified person for the
installation of the device pursuant to paragraph (1)
of subsection (i) of this Section. The procurement
administrator shall make available to the Commission
all written comments it receives on the contract
forms, credit terms, or instruments. If the
procurement administrator cannot reach agreement with
the parties as to the contract terms and conditions,
the procurement administrator must notify the
Commission of any disputed terms and the Commission
shall resolve the dispute. The terms of the contracts
shall not be subject to negotiation by winning

SB2248 - 58 - LRB102 17406 SPS 22899 b
bidders, and the bidders must agree to the terms of the
contract in advance so that winning bids are selected
solely on the basis of price.
(E) Requests for proposals; competitive
procurement process. The procurement administrator
shall design and issue requests for proposals to
supply renewable energy credits in accordance with the
supplemental procurement plan, as approved by the
Commission. The requests for proposals shall set forth
a procedure for sealed, binding commitment bidding
with pay-as-bid settlement, and provision for
selection of bids on the basis of price, provided,
however, that no bid shall be accepted if it exceeds
the benchmark developed pursuant to item (F) of this
paragraph (4).
(F) Benchmarks. Benchmarks for each product to be
procured shall be developed by the procurement
administrator in consultation with Commission staff,
the Agency, and the procurement monitor for use in
this supplemental procurement.
(G) A plan for implementing contingencies in the
event of supplier default, Commission rejection of
results, or any other cause.
(5) Within 2 business days after opening the sealed
bids, the procurement administrator shall submit a
confidential report to the Commission. The report shall

SB2248 - 59 - LRB102 17406 SPS 22899 b
contain the results of the bidding for each of the
products along with the procurement administrator's
recommendation for the acceptance and rejection of bids
based on the price benchmark criteria and other factors
observed in the process. The procurement monitor also
shall submit a confidential report to the Commission
within 2 business days after opening the sealed bids. The
report shall contain the procurement monitor's assessment
of bidder behavior in the process as well as an assessment
of the procurement administrator's compliance with the
procurement process and rules. The Commission shall review
the confidential reports submitted by the procurement
administrator and procurement monitor and shall accept or
reject the recommendations of the procurement
administrator within 2 business days after receipt of the
reports.
(6) Within 3 business days after the Commission
decision approving the results of a procurement event, the
Agency shall enter into binding contractual arrangements
with the winning suppliers using the standard form
contracts.
(7) The names of the successful bidders and the
average of the winning bid prices for each contract type
and for each contract term shall be made available to the
public within 2 days after the supplemental procurement
event. The Commission, the procurement monitor, the

SB2248 - 60 - LRB102 17406 SPS 22899 b
procurement administrator, the Agency, and all
participants in the procurement process shall maintain the
confidentiality of all other supplier and bidding
information in a manner consistent with all applicable
laws, rules, regulations, and tariffs. Confidential
information, including the confidential reports submitted
by the procurement administrator and procurement monitor
pursuant to this Section, shall not be made publicly
available and shall not be discoverable by any party in
any proceeding, absent a compelling demonstration of need,
nor shall those reports be admissible in any proceeding
other than one for law enforcement purposes.
(8) The supplemental procurement provided in this
subsection (i) shall not be subject to the requirements
and limitations of subsections (c) and (d) of this
Section.
(9) Expenses incurred in connection with the
procurement process held pursuant to this Section,
including, but not limited to, the cost of developing the
supplemental procurement plan, the procurement
administrator, procurement monitor, and the cost of the
retirement of renewable energy credits purchased pursuant
to the supplemental procurement shall be paid for from the
Illinois Power Agency Renewable Energy Resources Fund. The
Agency shall enter into an interagency agreement with the
Commission to reimburse the Commission for its costs

SB2248 - 61 - LRB102 17406 SPS 22899 b
associated with the procurement monitor for the
supplemental procurement process.
(Source: P.A. 98-672, eff. 6-30-14; 99-906, eff. 6-1-17.)
(20 ILCS 3855/1-75)
Sec. 1-75. Planning and Procurement Bureau. The Planning
and Procurement Bureau has the following duties and
responsibilities:
(a) The Planning and Procurement Bureau shall each year,
beginning in 2008, develop procurement plans and conduct
competitive procurement processes in accordance with the
requirements of Section 16-111.5 of the Public Utilities Act
for the eligible retail customers of electric utilities that
on December 31, 2005 provided electric service to at least
100,000 customers in Illinois. Beginning with the delivery
year commencing on June 1, 2017, the Planning and Procurement
Bureau shall develop plans and processes for the procurement
of zero emission credits from zero emission facilities in
accordance with the requirements of subsection (d-5) of this
Section. The Planning and Procurement Bureau shall also
develop procurement plans and conduct competitive procurement
processes in accordance with the requirements of Section
16-111.5 of the Public Utilities Act for the eligible retail
customers of small multi-jurisdictional electric utilities
that (i) on December 31, 2005 served less than 100,000
customers in Illinois and (ii) request a procurement plan for

SB2248 - 62 - LRB102 17406 SPS 22899 b
their Illinois jurisdictional load. This Section shall not
apply to a small multi-jurisdictional utility until such time
as a small multi-jurisdictional utility requests the Agency to
prepare a procurement plan for their Illinois jurisdictional
load. For the purposes of this Section, the term "eligible
retail customers" has the same definition as found in Section
16-111.5(a) of the Public Utilities Act.
Beginning with the plan or plans to be implemented in the
2017 delivery year, the Agency shall no longer include the
procurement of renewable energy resources in the annual
procurement plans required by this subsection (a), except as
provided in subsection (q) of Section 16-111.5 of the Public
Utilities Act and subsection (j) of this Section, and shall
instead develop a long-term renewable resources procurement
plan in accordance with subsection (c) of this Section and
Section 16-111.5 of the Public Utilities Act.
(1) The Agency shall each year, beginning in 2008, as
needed, issue a request for qualifications for experts or
expert consulting firms to develop the procurement plans
in accordance with Section 16-111.5 of the Public
Utilities Act. In order to qualify an expert or expert
consulting firm must have:
(A) direct previous experience assembling
large-scale power supply plans or portfolios for
end-use customers;
(B) an advanced degree in economics, mathematics,

SB2248 - 63 - LRB102 17406 SPS 22899 b
engineering, risk management, or a related area of
study;
(C) 10 years of experience in the electricity
sector, including managing supply risk;
(D) expertise in wholesale electricity market
rules, including those established by the Federal
Energy Regulatory Commission and regional transmission
organizations;
(E) expertise in credit protocols and familiarity
with contract protocols;
(F) adequate resources to perform and fulfill the
required functions and responsibilities; and
(G) the absence of a conflict of interest and
inappropriate bias for or against potential bidders or
the affected electric utilities.
(2) The Agency shall each year, as needed, issue a
request for qualifications for a procurement administrator
to conduct the competitive procurement processes in
accordance with Section 16-111.5 of the Public Utilities
Act. In order to qualify an expert or expert consulting
firm must have:
(A) direct previous experience administering a
large-scale competitive procurement process;
(B) an advanced degree in economics, mathematics,
engineering, or a related area of study;
(C) 10 years of experience in the electricity

SB2248 - 64 - LRB102 17406 SPS 22899 b
sector, including risk management experience;
(D) expertise in wholesale electricity market
rules, including those established by the Federal
Energy Regulatory Commission and regional transmission
organizations;
(E) expertise in credit and contract protocols;
(F) adequate resources to perform and fulfill the
required functions and responsibilities; and
(G) the absence of a conflict of interest and
inappropriate bias for or against potential bidders or
the affected electric utilities.
(3) The Agency shall provide affected utilities and
other interested parties with the lists of qualified
experts or expert consulting firms identified through the
request for qualifications processes that are under
consideration to develop the procurement plans and to
serve as the procurement administrator. The Agency shall
also provide each qualified expert's or expert consulting
firm's response to the request for qualifications. All
information provided under this subparagraph shall also be
provided to the Commission. The Agency may provide by rule
for fees associated with supplying the information to
utilities and other interested parties. These parties
shall, within 5 business days, notify the Agency in
writing if they object to any experts or expert consulting
firms on the lists. Objections shall be based on:

SB2248 - 65 - LRB102 17406 SPS 22899 b
(A) failure to satisfy qualification criteria;
(B) identification of a conflict of interest; or
(C) evidence of inappropriate bias for or against
potential bidders or the affected utilities.
The Agency shall remove experts or expert consulting
firms from the lists within 10 days if there is a
reasonable basis for an objection and provide the updated
lists to the affected utilities and other interested
parties. If the Agency fails to remove an expert or expert
consulting firm from a list, an objecting party may seek
review by the Commission within 5 days thereafter by
filing a petition, and the Commission shall render a
ruling on the petition within 10 days. There is no right of
appeal of the Commission's ruling.
(4) The Agency shall issue requests for proposals to
the qualified experts or expert consulting firms to
develop a procurement plan for the affected utilities and
to serve as procurement administrator.
(5) The Agency shall select an expert or expert
consulting firm to develop procurement plans based on the
proposals submitted and shall award contracts of up to 5
years to those selected.
(6) The Agency shall select an expert or expert
consulting firm, with approval of the Commission, to serve
as procurement administrator based on the proposals
submitted. If the Commission rejects, within 5 days, the

SB2248 - 66 - LRB102 17406 SPS 22899 b
Agency's selection, the Agency shall submit another
recommendation within 3 days based on the proposals
submitted. The Agency shall award a 5-year contract to the
expert or expert consulting firm so selected with
Commission approval.
(b) The experts or expert consulting firms retained by the
Agency shall, as appropriate, prepare procurement plans, and
conduct a competitive procurement process as prescribed in
Section 16-111.5 of the Public Utilities Act, to ensure
adequate, reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability, for
eligible retail customers of electric utilities that on
December 31, 2005 provided electric service to at least
100,000 customers in the State of Illinois, and for eligible
Illinois retail customers of small multi-jurisdictional
electric utilities that (i) on December 31, 2005 served less
than 100,000 customers in Illinois and (ii) request a
procurement plan for their Illinois jurisdictional load.
(c) Renewable portfolio standard.
(1)(A) The Agency shall develop a long-term renewable
resources procurement plan that shall include procurement
programs and competitive procurement events necessary to
meet the goals set forth in this subsection (c). The
initial long-term renewable resources procurement plan
shall be released for comment no later than 160 days after

SB2248 - 67 - LRB102 17406 SPS 22899 b
June 1, 2017 (the effective date of Public Act 99-906).
The Agency shall review, and may revise on an expedited
basis, the long-term renewable resources procurement plan
at least every 2 years, which shall be conducted in
conjunction with the procurement plan under Section
16-111.5 of the Public Utilities Act to the extent
practicable to minimize administrative expense. No later
than 90 days after the effective date of this amendatory
Act of the 102nd General Assembly, the Agency shall
release for comment a revision to the long-term renewable
resources procurement plan, updating only elements of the
most recently approved plan as needed to comply with this
amendatory Act of the 102nd General Assembly. The
long-term renewable resources procurement plans shall be
subject to review and approval by the Commission under
Section 16-111.5 of the Public Utilities Act.
(B) Subject to subparagraph (F) of this paragraph (1),
the long-term renewable resources procurement plan shall
include the goals for procurement of renewable energy
credits to meet at least the following overall
percentages: 13% by the 2017 delivery year; increasing by
at least 1.5% each delivery year thereafter to at least
25% by the 2025 delivery year; increasing by at least 4%
each delivery year after the 2025 delivery year to at
least 45% by 2030; increasing by at least 3% each delivery
year after the 2030 delivery year to at least 60% by 2035,

SB2248 - 68 - LRB102 17406 SPS 22899 b
75% by 2040, and 90% by 2045; increasing by at least 2%
each delivery year after the 2045 delivery year to 100% by
the 2050 delivery year and continuing at 100% no less than
25% for each delivery year thereafter. In the event of a
conflict between these goals and the new wind and new
photovoltaic procurement requirements described in items
(i) through (iii) of subparagraph (C) of this paragraph
(1), the long-term plan shall prioritize compliance with
the new wind and new photovoltaic procurement requirements
described in items (i) through (iii) of subparagraph (C)
of this paragraph (1) over the annual percentage targets
described in this subparagraph (B). The Agency shall not
comply with the annual percentage targets described in
this subparagraph (B) by procuring renewable energy
credits on the spot market that are unlikely to lead to the
development of new renewable resources.
For the delivery year beginning June 1, 2017, the
procurement plan shall include cost-effective renewable
energy resources equal to at least 13% of each utility's
load for eligible retail customers and 13% of the
applicable portion of each utility's load for retail
customers who are not eligible retail customers, which
applicable portion shall equal 50% of the utility's load
for retail customers who are not eligible retail customers
on February 28, 2017.
For the delivery year beginning June 1, 2018, the

SB2248 - 69 - LRB102 17406 SPS 22899 b
procurement plan shall include cost-effective renewable
energy resources equal to at least 14.5% of each utility's
load for eligible retail customers and 14.5% of the
applicable portion of each utility's load for retail
customers who are not eligible retail customers, which
applicable portion shall equal 75% of the utility's load
for retail customers who are not eligible retail customers
on February 28, 2017.
For the delivery year beginning June 1, 2019, and for
each year thereafter, the procurement plans shall include
cost-effective renewable energy resources equal to a
minimum percentage of each utility's load for all retail
customers as follows: 16% by June 1, 2019; increasing by
1.5% each year thereafter to 25% by June 1, 2025;
increasing by at least 4% each year thereafter to at least
45% by June 1, 2030; increasing by at least 3% each year
thereafter to at least 90% by June 1, 2045; increasing by
at least 2% each year thereafter to at least 100% by June
1, 2050 and 25% by June 1, 2026 and each year thereafter.
For each delivery year, the Agency shall first
recognize each utility's obligations for that delivery
year under existing contracts. Any renewable energy
credits under existing contracts, including renewable
energy credits as part of renewable energy resources,
shall be used to meet the goals set forth in this
subsection (c) for the delivery year.

SB2248 - 70 - LRB102 17406 SPS 22899 b
(C) Of the renewable energy credits procured under
this subsection (c), at least 75% shall come from wind and
photovoltaic projects. The long-term renewable resources
procurement plan described in subparagraph (A) of this
paragraph (1) shall include the procurement of renewable
energy credits in amounts equal to at least the following:
at least 5,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2020, unless the project has delays
in the establishment of an operating interconnection
with the applicable transmission or distribution
system as a result of the actions or inactions of the
transmission or distribution provider, or other causes
for force majeure as outlined in the procurement
contract, in which case, not later than June 1, 2022;
at least 13,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2021;
at least 18,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2022;
at least 23,000,000 renewable energy credits from
new wind and new photovoltaic projects for each

SB2248 - 71 - LRB102 17406 SPS 22899 b
delivery year by the end of the delivery year
beginning June 1, 2023;
at least 28,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2024;
at least 33,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2025;
at least 38,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2026;
at least 43,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2027;
at least 48,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2028;
at least 53,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2029; and

SB2248 - 72 - LRB102 17406 SPS 22899 b
at least 58,000,000 renewable energy credits from
new wind and new photovoltaic projects for each
delivery year by the end of the delivery year
beginning June 1, 2030.
(i) By the end of the 2020 delivery year:
At least 2,000,000 renewable energy credits
for each delivery year shall come from new wind
projects; and
Of the renewable energy credits procured from
new wind and new photovoltaic projects for each
delivery year At least 2,000,000 renewable energy
credits for each delivery year shall come from new
photovoltaic projects; of that amount, to the
extent possible, the Agency shall procure 50% from
new wind projects and 50% from new photovoltaic
projects. Of the amount to be procured from new
photovoltaic projects, the Agency shall procure,
to the extent reasonably practicable: at least 33%
50% from distributed and community solar
photovoltaic projects using the programs program
outlined in subparagraphs subparagraph (K) and (N)
of this paragraph (1) through the 2021 delivery
year, increasing ratably beginning in the 2022
delivery year to at least 50% by the 2038 delivery
year and for each delivery year thereafter from
distributed renewable energy generation devices or

SB2248 - 73 - LRB102 17406 SPS 22899 b
community renewable generation projects; at least
40% from utility-scale solar projects; at least 7%
2% from brownfield site photovoltaic projects that
are not community renewable generation projects;
and the remainder shall be determined through the
long-term planning process described in
subparagraph (A) of this paragraph (1).
In developing the long-term renewable resources
procurement plan, the Agency shall consider other
approaches, in addition to competitive procurements, that
can be used to procure renewable energy credits from
brownfield site photovoltaic projects and thereby help
return blighted or contaminated land to productive use
while enhancing public health and the well-being of
Illinois residents, including those in environmental
justice communities, as defined using existing
methodologies and findings used by the Illinois Power
Agency and its Administrator in its Illinois Solar for All
Program.
Of the amount of renewable energy credits to be
procured from either distributed or community solar
photovoltaic projects using the programs outlined in
subparagraph (K) of this paragraph (1), the long-term plan
developed through the process described in subparagraph
(A) of this paragraph (1) shall use the following initial
breakdown, which may be adjusted upon review by the Agency

SB2248 - 74 - LRB102 17406 SPS 22899 b
and approval by the Commission:
(i) at least 25% from distributed renewable energy
generation devices with a nameplate capacity of no
more than 25 kilowatts;
(ii) at least 25% from distributed renewable
energy generation devices with a nameplate capacity of
more than 25 kilowatts and no more than 2,000
kilowatts;
(iii) at least 25% from photovoltaic community
renewable generation projects; and
(iv) the remaining 25% shall be allocated as
specified by the Agency in the long-term renewable
resources procurement plan.
The ratable procurement of new renewable resources
discussed in this subparagraph (C) shall involve annual
procurements of new wind and new photovoltaic projects
and, in the case of the Adjustable Block Program created
by subparagraph (K) of this paragraph (1), the annual
release of new blocks of capacity each year with the goal
of encouraging stability and steady growth in the
renewable resources market and avoiding boom-bust cycles.
(ii) By the end of the 2025 delivery year:
At least 3,000,000 renewable energy credits
for each delivery year shall come from new wind
projects; and
At least 3,000,000 renewable energy credits

SB2248 - 75 - LRB102 17406 SPS 22899 b
for each delivery year shall come from new
photovoltaic projects; of that amount, to the
extent possible, the Agency shall procure: at
least 50% from solar photovoltaic projects using
the program outlined in subparagraph (K) of this
paragraph (1) from distributed renewable energy
devices or community renewable generation
projects; at least 40% from utility-scale solar
projects; at least 2% from brownfield site
photovoltaic projects that are not community
renewable generation projects; and the remainder
shall be determined through the long-term planning
process described in subparagraph (A) of this
paragraph (1).
(iii) By the end of the 2030 delivery year:
At least 4,000,000 renewable energy credits
for each delivery year shall come from new wind
projects; and
At least 4,000,000 renewable energy credits
for each delivery year shall come from new
photovoltaic projects; of that amount, to the
extent possible, the Agency shall procure: at
least 50% from solar photovoltaic projects using
the program outlined in subparagraph (K) of this
paragraph (1) from distributed renewable energy
devices or community renewable generation

SB2248 - 76 - LRB102 17406 SPS 22899 b
projects; at least 40% from utility-scale solar
projects; at least 2% from brownfield site
photovoltaic projects that are not community
renewable generation projects; and the remainder
shall be determined through the long-term planning
process described in subparagraph (A) of this
paragraph (1).
For purposes of this Section:
"New wind projects" means wind renewable
energy facilities that are energized after June 1,
2017 for the delivery year commencing June 1, 2017
or within 3 years after the date the Commission
approves contracts for subsequent delivery years.
"New photovoltaic projects" means photovoltaic
renewable energy facilities that are energized
after June 1, 2017. Photovoltaic projects
developed under Section 1-56 of this Act shall not
apply towards the new photovoltaic project
requirements in this subparagraph (C) unless they
are purchased in combination with the Adjustable
Block Program established in subparagraph (K) of
this paragraph (1), as described in paragraph
(3.5) of subsection (b) of Section 1-56 of this
Act.
(D) Renewable energy credits shall be cost effective.
For purposes of this subsection (c), "cost effective"

SB2248 - 77 - LRB102 17406 SPS 22899 b
means that the costs of procuring renewable energy
resources do not cause the limit stated in subparagraph
(E) of this paragraph (1) to be exceeded and, for
renewable energy credits procured through a competitive
procurement event, do not exceed benchmarks based on
market prices for like products in the region. For
purposes of this subsection (c), "like products" means
contracts for renewable energy credits from the same or
substantially similar technology, same or substantially
similar vintage (new or existing), the same or
substantially similar quantity, and the same or
substantially similar contract length and structure.
Benchmarks shall be developed by the procurement
administrator, in consultation with the Commission staff,
Agency staff, and the procurement monitor and shall be
subject to Commission review and approval. If price
benchmarks for like products in the region are not
available, the procurement administrator shall establish
price benchmarks based on publicly available data on
regional technology costs and expected current and future
regional energy prices. The benchmarks in this Section
shall not be used to curtail or otherwise reduce
contractual obligations entered into by or through the
Agency prior to June 1, 2017 (the effective date of Public
Act 99-906).
(E) For purposes of this subsection (c), the required

SB2248 - 78 - LRB102 17406 SPS 22899 b
procurement of cost-effective renewable energy resources
for a particular year commencing prior to June 1, 2017
shall be measured as a percentage of the actual amount of
electricity (megawatt-hours) supplied by the electric
utility to eligible retail customers in the delivery year
ending immediately prior to the procurement, and, for
delivery years commencing on and after June 1, 2017, the
required procurement of cost-effective renewable energy
resources for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) delivered by the electric utility in the
delivery year ending immediately prior to the procurement,
to all retail customers in its service territory. For
purposes of this subsection (c), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For
purposes of this subsection (c), the total amount paid for
electric service includes without limitation amounts paid
for supply, transmission, distribution, surcharges, and
add-on taxes.
Notwithstanding the requirements of this subsection
(c), the total of renewable energy resources procured
under the procurement plan for any single year shall be
subject to the limitations of this subparagraph (E). Until
the delivery year beginning June 1, 2023, such Such
procurement shall be reduced for all retail customers

SB2248 - 79 - LRB102 17406 SPS 22899 b
based on the amount necessary to limit the annual
estimated average net increase due to the costs of these
resources included in the amounts paid by eligible retail
customers in connection with electric service to no more
than the greater of 2.67% 2.015% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2009 2007 or the incremental amount per kilowatthour
paid for these resources in 2011. Beginning with the
delivery year beginning June 1, 2023, such procurement
shall be reduced for all retail customers based on the
amount necessary to limit the annual estimated average net
increase due to the costs of these resources included in
the amounts paid by eligible retail customers in
connection with electric service to no more than the
greater of 4.88% of the amount paid per kilowatt hour by
those customers during the year ending May 31, 2009 or the
incremental amount per kilowatt hour paid for these
resources in 2011. To arrive at a maximum dollar amount of
renewable energy resources to be procured for the
particular delivery year, the resulting per kilowatthour
amount shall be applied to the actual amount of
kilowatthours of electricity delivered, or applicable
portion of such amount as specified in paragraph (1) of
this subsection (c), as applicable, by the electric
utility in the delivery year immediately prior to the
procurement to all retail customers in its service

SB2248 - 80 - LRB102 17406 SPS 22899 b
territory. The calculations required by this subparagraph
(E) shall be made only once for each delivery year at the
time that the renewable energy resources are procured.
Once the determination as to the amount of renewable
energy resources to procure is made based on the
calculations set forth in this subparagraph (E) and the
contracts procuring those amounts are executed, no
subsequent rate impact determinations shall be made and no
adjustments to those contract amounts shall be allowed.
All costs incurred under such contracts shall be fully
recoverable by the electric utility as provided in this
Section.
(F) If the limitation on the amount of renewable
energy resources procured in subparagraph (E) of this
paragraph (1) prevents the Agency from meeting all of the
goals in this subsection (c), the Agency's long-term plan
shall prioritize compliance with the requirements of this
subsection (c) regarding renewable energy credits in the
following order:
(i) renewable energy credits under existing
contractual obligations;
(i-5) funding for the Illinois Solar for All
Program, as described in subparagraph (O) of this
paragraph (1);
(ii) renewable energy credits necessary to comply
with the new wind and new photovoltaic procurement

SB2248 - 81 - LRB102 17406 SPS 22899 b
requirements described in items (i) through (iii) of
subparagraph (C) of this paragraph (1); and
(iii) renewable energy credits necessary to meet
the remaining requirements of this subsection (c).
(G) The following provisions shall apply to the
Agency's procurement of renewable energy credits under
this subsection (c):
(i) Notwithstanding whether a long-term renewable
resources procurement plan has been approved, the
Agency shall conduct an initial forward procurement
for renewable energy credits from new utility-scale
wind projects within 160 days after June 1, 2017 (the
effective date of Public Act 99-906). For the purposes
of this initial forward procurement, the Agency shall
solicit 15-year contracts for delivery of 1,000,000
renewable energy credits delivered annually from new
utility-scale wind projects to begin delivery on June
1, 2019, if available, but not later than June 1, 2021,
unless the project has delays in the establishment of
an operating interconnection with the applicable
transmission or distribution system as a result of the
actions or inactions of the transmission or
distribution provider, or other causes for force
majeure as outlined in the procurement contract, in
which case, not later than June 1, 2022. Payments to
suppliers of renewable energy credits shall commence

SB2248 - 82 - LRB102 17406 SPS 22899 b
upon delivery. Renewable energy credits procured under
this initial procurement shall be included in the
Agency's long-term plan and shall apply to all
renewable energy goals in this subsection (c).
(ii) Notwithstanding whether a long-term renewable
resources procurement plan has been approved, the
Agency shall conduct an initial forward procurement
for renewable energy credits from new utility-scale
solar projects and brownfield site photovoltaic
projects within one year after June 1, 2017 (the
effective date of Public Act 99-906). For the purposes
of this initial forward procurement, the Agency shall
solicit 15-year contracts for delivery of 1,000,000
renewable energy credits delivered annually from new
utility-scale solar projects and brownfield site
photovoltaic projects to begin delivery on June 1,
2019, if available, but not later than June 1, 2021,
unless the project has delays in the establishment of
an operating interconnection with the applicable
transmission or distribution system as a result of the
actions or inactions of the transmission or
distribution provider, or other causes for force
majeure as outlined in the procurement contract, in
which case, not later than June 1, 2022. The Agency may
structure this initial procurement in one or more
discrete procurement events. Payments to suppliers of

SB2248 - 83 - LRB102 17406 SPS 22899 b
renewable energy credits shall commence upon delivery.
Renewable energy credits procured under this initial
procurement shall be included in the Agency's
long-term plan and shall apply to all renewable energy
goals in this subsection (c).
(iii) Notwithstanding whether the Commission has
approved the periodic long-term renewable resources
procurement plan revision described in Section
16-111.5 of the Public Utilities Act, the Agency shall
conduct at least one subsequent forward procurement
for renewable energy credits from new utility-scale
wind projects, new utility-scale solar, and new
brownfield site photovoltaic projects within 120 days
after the effective date of this amendatory Act of the
102nd General Assembly in quantities needed to meet
the requirements of subparagraph (C) through the
delivery year beginning June 1, 2021. The Agency shall
also release additional blocks of capacity into the
Adjustable Block Program, as needed to sustain the
market for distributed renewable energy generation
devices with nameplate capacities both smaller and
larger than 25 kilowatts through the subsequent
long-term renewable resources procurement plan
revision process, within 120 days after the effective
date of this amendatory Act of the 102nd General
Assembly notwithstanding whether the Commission has

SB2248 - 84 - LRB102 17406 SPS 22899 b
approved the periodic long-term renewable resources
procurement plan revision described in Section
16-111.5 of the Public Utilities Act. Subsequent
forward procurements for utility-scale wind projects
shall solicit at least 1,000,000 renewable energy
credits delivered annually per procurement event and
shall be planned, scheduled, and designed such that
the cumulative amount of renewable energy credits
delivered from all new wind projects in each delivery
year shall not exceed the Agency's projection of the
cumulative amount of renewable energy credits that
will be delivered from all new photovoltaic projects,
including utility-scale and distributed photovoltaic
devices, in the same delivery year at the time
scheduled for wind contract delivery.
(iv) If, at any time after the time set for
delivery of renewable energy credits pursuant to the
initial procurements in items (i) and (ii) of this
subparagraph (G), the cumulative amount of renewable
energy credits projected to be delivered from all new
wind projects in a given delivery year exceeds the
cumulative amount of renewable energy credits
projected to be delivered from all new photovoltaic
projects in that delivery year by 200,000 or more
renewable energy credits, then the Agency shall within
60 days adjust the procurement programs in the

SB2248 - 85 - LRB102 17406 SPS 22899 b
long-term renewable resources procurement plan to
ensure that the projected cumulative amount of
renewable energy credits to be delivered from all new
wind projects does not exceed the projected cumulative
amount of renewable energy credits to be delivered
from all new photovoltaic projects by 200,000 or more
renewable energy credits, provided that nothing in
this Section shall preclude the projected cumulative
amount of renewable energy credits to be delivered
from all new photovoltaic projects from exceeding the
projected cumulative amount of renewable energy
credits to be delivered from all new wind projects in
each delivery year and provided further that nothing
in this item (iv) shall require the curtailment of an
executed contract. The Agency shall update, on a
quarterly basis, its projection of the renewable
energy credits to be delivered from all projects in
each delivery year. Notwithstanding anything to the
contrary, the Agency may adjust the timing of
procurement events conducted under this subparagraph
(G). The long-term renewable resources procurement
plan shall set forth the process by which the
adjustments may be made.
(iv) (v) All procurements under this subparagraph
(G) shall comply with the geographic requirements in
subparagraph (I) of this paragraph (1) and shall

SB2248 - 86 - LRB102 17406 SPS 22899 b
follow the procurement processes and procedures
described in this Section and Section 16-111.5 of the
Public Utilities Act to the extent practicable, and
these processes and procedures may be expedited to
accommodate the schedule established by this
subparagraph (G).
(H) The procurement of renewable energy resources for
a given delivery year shall be reduced as described in
this subparagraph (H) if an alternative retail electric
supplier meets the requirements described in this
subparagraph (H).
(i) Within 45 days after June 1, 2017 (the
effective date of Public Act 99-906), an alternative
retail electric supplier or its successor shall submit
an informational filing to the Illinois Commerce
Commission certifying that, as of December 31, 2015,
the alternative retail electric supplier owned one or
more electric generating facilities that generates
renewable energy resources as defined in Section 1-10
of this Act, provided that such facilities are not
powered by wind or photovoltaics, and the facilities
generate one renewable energy credit for each
megawatthour of energy produced from the facility.
The informational filing shall identify each
facility that was eligible to satisfy the alternative
retail electric supplier's obligations under Section

SB2248 - 87 - LRB102 17406 SPS 22899 b
16-115D of the Public Utilities Act as described in
this item (i).
(ii) For a given delivery year, the alternative
retail electric supplier may elect to supply its
retail customers with renewable energy credits from
the facility or facilities described in item (i) of
this subparagraph (H) that continue to be owned by the
alternative retail electric supplier.
(iii) The alternative retail electric supplier
shall notify the Agency and the applicable utility, no
later than February 28 of the year preceding the
applicable delivery year or 15 days after June 1, 2017
(the effective date of Public Act 99-906), whichever
is later, of its election under item (ii) of this
subparagraph (H) to supply renewable energy credits to
retail customers of the utility. Such election shall
identify the amount of renewable energy credits to be
supplied by the alternative retail electric supplier
to the utility's retail customers and the source of
the renewable energy credits identified in the
informational filing as described in item (i) of this
subparagraph (H), subject to the following
limitations:
For the delivery year beginning June 1, 2018,
the maximum amount of renewable energy credits to
be supplied by an alternative retail electric

SB2248 - 88 - LRB102 17406 SPS 22899 b
supplier under this subparagraph (H) shall be 68%
multiplied by 25% multiplied by 14.5% multiplied
by the amount of metered electricity
(megawatt-hours) delivered by the alternative
retail electric supplier to Illinois retail
customers during the delivery year ending May 31,
2016.
For delivery years beginning June 1, 2019 and
each year thereafter, the maximum amount of
renewable energy credits to be supplied by an
alternative retail electric supplier under this
subparagraph (H) shall be 68% multiplied by 50%
multiplied by 16% multiplied by the amount of
metered electricity (megawatt-hours) delivered by
the alternative retail electric supplier to
Illinois retail customers during the delivery year
ending May 31, 2016, provided that the 16% value
shall increase by 1.5% each delivery year
thereafter to 25% by the delivery year beginning
June 1, 2025, and thereafter the 25% value shall
apply to each delivery year.
For each delivery year, the total amount of
renewable energy credits supplied by all alternative
retail electric suppliers under this subparagraph (H)
shall not exceed 9% of the Illinois target renewable
energy credit quantity. The Illinois target renewable

SB2248 - 89 - LRB102 17406 SPS 22899 b
energy credit quantity for the delivery year beginning
June 1, 2018 is 14.5% multiplied by the total amount of
metered electricity (megawatt-hours) delivered in the
delivery year immediately preceding that delivery
year, provided that the 14.5% shall increase by 1.5%
each delivery year thereafter to 25% by the delivery
year beginning June 1, 2025, and thereafter the 25%
value shall apply to each delivery year.
If the requirements set forth in items (i) through
(iii) of this subparagraph (H) are met, the charges
that would otherwise be applicable to the retail
customers of the alternative retail electric supplier
under paragraph (6) of this subsection (c) for the
applicable delivery year shall be reduced by the ratio
of the quantity of renewable energy credits supplied
by the alternative retail electric supplier compared
to that supplier's target renewable energy credit
quantity. The supplier's target renewable energy
credit quantity for the delivery year beginning June
1, 2018 is 14.5% multiplied by the total amount of
metered electricity (megawatt-hours) delivered by the
alternative retail supplier in that delivery year,
provided that the 14.5% shall increase by 1.5% each
delivery year thereafter to 25% by the delivery year
beginning June 1, 2025, and thereafter the 25% value
shall apply to each delivery year.

SB2248 - 90 - LRB102 17406 SPS 22899 b
On or before April 1 of each year, the Agency shall
annually publish a report on its website that
identifies the aggregate amount of renewable energy
credits supplied by alternative retail electric
suppliers under this subparagraph (H).
(I) The Agency shall design its long-term renewable
energy procurement plan to maximize the State's interest
in the health, safety, and welfare of its residents,
including but not limited to minimizing sulfur dioxide,
nitrogen oxide, particulate matter and other pollution
that adversely affects public health in this State,
increasing fuel and resource diversity in this State,
enhancing the reliability and resiliency of the
electricity distribution system in this State, meeting
goals to limit carbon dioxide emissions under federal or
State law, and contributing to a cleaner and healthier
environment for the residents citizens of this State. In
order to further these legislative purposes, renewable
energy credits shall be eligible to be counted toward the
renewable energy requirements of this subsection (c) if
they are generated from facilities located in this State.
The Agency may qualify renewable energy credits from
facilities located in states adjacent to Illinois if the
generator demonstrates and the Agency determines that the
operation of such facility or facilities will help promote
the State's interest in the health, safety, and welfare of

SB2248 - 91 - LRB102 17406 SPS 22899 b
its residents based on the public interest criteria
described above. To ensure that the public interest
criteria are applied to the procurement and given full
effect, the Agency's long-term procurement plan shall
describe in detail how each public interest factor shall
be considered and weighted for facilities located in
states adjacent to Illinois.
(J) In order to promote the competitive development of
renewable energy resources in furtherance of the State's
interest in the health, safety, and welfare of its
residents, renewable energy credits shall not be eligible
to be counted toward the renewable energy requirements of
this subsection (c) if they are sourced from a generating
unit whose costs were being recovered through rates
regulated by this State or any other state or states on or
after January 1, 2017. Each contract executed to purchase
renewable energy credits under this subsection (c) shall
provide for the contract's termination if the costs of the
generating unit supplying the renewable energy credits
subsequently begin to be recovered through rates regulated
by this State or any other state or states; and each
contract shall further provide that, in that event, the
supplier of the credits must return 110% of all payments
received under the contract. Amounts returned under the
requirements of this subparagraph (J) shall be retained by
the utility and all of these amounts shall be used for the

SB2248 - 92 - LRB102 17406 SPS 22899 b
procurement of additional renewable energy credits from
new wind or new photovoltaic resources as defined in this
subsection (c). The long-term plan shall provide that
these renewable energy credits shall be procured in the
next procurement event.
Notwithstanding the limitations of this subparagraph
(J), renewable energy credits sourced from generating
units that are constructed, purchased, owned, or leased by
an electric utility as part of an approved project,
program, or pilot under Section 1-56 of this Act shall be
eligible to be counted toward the renewable energy
requirements of this subsection (c), regardless of how the
costs of these units are recovered.
(K) The long-term renewable resources procurement plan
developed by the Agency in accordance with subparagraph
(A) of this paragraph (1) shall include an Adjustable
Block program for the procurement of renewable energy
credits from new photovoltaic projects that are
distributed renewable energy generation devices or new
photovoltaic community renewable generation projects. The
Adjustable Block program shall be designed to provide for
the steady, predictable, and sustainable growth of new
solar photovoltaic development in Illinois. To this end,
the Adjustable Block program shall provide a transparent
annual schedule of prices and quantities to enable the
photovoltaic market to scale up and for renewable energy

SB2248 - 93 - LRB102 17406 SPS 22899 b
credit prices to adjust at a predictable rate over time.
The prices set by the Adjustable Block program can be
reflected as a set value or as the product of a formula.
The Adjustable Block program shall include for each
category of eligible projects: a schedule of standard
block purchase prices to be offered; a series of steps,
with associated nameplate capacity and purchase prices
that adjust from step to step; and automatic opening of
the next step as soon as the nameplate capacity and
available purchase prices for an open step are fully
committed or reserved. Only projects energized on or after
June 1, 2017 shall be eligible for the Adjustable Block
program. The Agency shall develop program features and
implementation processes that create consistent market
signals, making the program predictable and sustainable
for solar industry companies, thus allowing them to scale
up long-term hiring and investment activities. For each
block group the Agency shall determine the number of
blocks, the amount of generation capacity in each block,
and the purchase price for each block, provided that the
purchase price provided and the total amount of generation
in all blocks for all block groups shall be sufficient to
meet the goals in this subsection (c). The Agency shall
establish program eligibility requirements that ensure
that projects that enter the program are sufficiently
mature to indicate a demonstrable path to completion. The

SB2248 - 94 - LRB102 17406 SPS 22899 b
Agency may periodically review its prior decisions
establishing the number of blocks, the amount of
generation capacity in each block, and the purchase price
for each block, and may propose, on an expedited basis,
changes to these previously set values, including but not
limited to redistributing these amounts and the available
funds as necessary and appropriate, subject to Commission
approval as part of the periodic plan revision process
described in Section 16-111.5 of the Public Utilities Act.
The Agency may define different block sizes, purchase
prices, or other distinct terms and conditions for
projects located in different utility service territories
if the Agency deems it necessary to meet the goals in this
subsection (c).
The Adjustable Block program shall include at least
the following block groups in at least the following
amounts, which may be adjusted upon review by the Agency
and approval by the Commission as described in this
subparagraph (K):
(i) At least 25% from distributed renewable energy
generation devices with a nameplate capacity of no
more than 25 10 kilowatts.
(ii) At least 25% from distributed renewable
energy generation devices with a nameplate capacity of
more than 25 10 kilowatts and no more than 2,000
kilowatts. The Agency may create sub-categories within

SB2248 - 95 - LRB102 17406 SPS 22899 b
this category to account for the differences between
projects for small commercial customers, large
commercial customers, and public or non-profit
customers.
(iii) other block groups as specified by the
Agency and approved by the Commission in the long-term
renewable resources procurement plan in order to meet
the goals of this subsection (c) At least 25% from
photovoltaic community renewable generation projects.
(iv) The remaining 25% shall be allocated as
specified by the Agency in the long-term renewable
resources procurement plan.
The Adjustable Block program shall be designed to
ensure that renewable energy credits are procured from
photovoltaic distributed renewable energy generation
devices and new photovoltaic community renewable energy
generation projects in diverse locations, including urban
and rural areas, and are not concentrated in a few
geographic areas or excluding particular geographic areas.
The Adjustable Block program shall reserve a total of
40% of each block's capacity at the block's price to be
available for qualified vendors that score no less than
105 points in the equity points system described in
subparagraphs (A) through (H) of paragraph (7) of this
subsection (c). Nothing in this paragraph shall prohibit
the opening of additional blocks for the unreserved

SB2248 - 96 - LRB102 17406 SPS 22899 b
capacity of each block. Beginning with the first update to
the Long-Term Renewable Resources Procurement Plan after
December 31, 2024, the Agency shall review the reserved
capacity level for future blocks. In developing its annual
budgets, the Agency shall project the amount of
development in each block, at the prices of each block,
expected to occur in the budget timeframe.
Immediately upon the effective date of this amendatory
Act of the 102nd General Assembly, the Adjustable Block
Program shall stop accepting applications from community
renewable generation projects and shall stop allocating
capacity remaining in open or future blocks to community
renewable generation projects.
(L) The procurement of photovoltaic renewable energy
credits under the Adjustable Block Program established
under items (i) through (iv) of subparagraph (K) and the
Community Solar Program established under subparagraph (N)
of this paragraph (1) shall be subject to the following
contract and payment terms:
(i) The Agency shall procure contracts of at least
15 years in length.
(ii) For those renewable energy credits that
qualify and are procured from projects with a
nameplate capacity of no more than 10 kilowatts under
item (i) of subparagraph (K) of this paragraph (1),
the renewable energy credit purchase price shall be

SB2248 - 97 - LRB102 17406 SPS 22899 b
paid in full by the contracting utilities at the time
that the facility producing the renewable energy
credits is interconnected at the distribution system
level of the utility and energized. The electric
utility shall receive and retire all renewable energy
credits generated by the project for the first 15
years of operation.
(iii) For those renewable energy credits that
qualify and are procured from projects with a
nameplate capacity of more than 10 kilowatts but no
more than 200 kilowatts or, if approved at the
recommendation of the Agency in its long-term plan,
from projects that include a community ownership
component or are owned by a nonprofit or public entity
under item (ii) and (iii) of subparagraph (K) of this
paragraph (1) and any additional categories of
distributed generation included in the long-term
renewable resources procurement plan and approved by
the Commission, 20 percent of the renewable energy
credit purchase price shall be paid by the contracting
utilities at the time that the facility producing the
renewable energy credits is interconnected at the
distribution system level of the utility and
energized. The remaining portion shall be paid ratably
over the subsequent 4-year period. The electric
utility shall receive and retire all renewable energy

SB2248 - 98 - LRB102 17406 SPS 22899 b
credits generated by the project for the first 15
years of operation.
(iv) For those renewable energy credits that
qualify and are procured from all other projects under
subparagraph (K) or (N) of this paragraph (1), the
renewable energy credit purchase price shall be paid
by the contracting utilities over the 15-year life of
the contract. The electric utility shall receive and
retire all renewable energy credits generated by the
project for the first 15 years of operation.
(v) (iv) Each contract shall include provisions to
ensure the delivery of the renewable energy credits
for the full term of the contract.
(vi) (v) The utility shall be the counterparty to
the contracts executed under this subparagraph (L)
that are approved by the Commission under the process
described in Section 16-111.5 of the Public Utilities
Act. No contract shall be executed for an amount that
is less than one renewable energy credit per year.
(vii) (vi) If, at any time, approved applications
for the Adjustable Block program exceed funds
collected by the electric utility or would cause the
Agency to exceed the limitation described in
subparagraph (E) of this paragraph (1) on the amount
of renewable energy resources that may be procured,
then the Agency shall consider future uncommitted

SB2248 - 99 - LRB102 17406 SPS 22899 b
funds to be reserved for these contracts on a
first-come, first-served basis, with the delivery of
renewable energy credits required beginning at the
time that the reserved funds become available.
(viii) (vii) Nothing in this Section shall require
the utility to advance any payment or pay any amounts
that exceed, in a given delivery year, (i) the actual
amount of revenues collected by the utility in the
delivery year and unspent available revenues from
prior delivery years, in both cases under paragraph
(6) of this subsection (c) and subsection (k) of
Section 16-108 of the Public Utilities Act and (ii)
other utility-held funds authorized for renewables
procurement by order of the Illinois Commerce
Commission. Contracts , and contracts executed under
this Section shall expressly incorporate this
limitation.
(ix) Notwithstanding items (ii), (iii), and (iv)
of this subparagraph (L), the Agency shall not be
restricted from offering additional payment structures
if it determines that such adjustments will better
achieve the goals of this subsection (c), as
prioritized in subparagraph (F) of this paragraph (1)
of this subsection (c). Any such adjustments shall be
approved by the Commission as a long-term plan
amendment under Section 16-111.5 of the Public

SB2248 - 100 - LRB102 17406 SPS 22899 b
Utilities Act.
(x) Notwithstanding other requirements of this
subparagraph (L), no modification shall be required to
Adjustable Block Program contracts if they were
already executed before new contract forms are
implemented under the revised long-term plan that
follows this amendatory Act of the 102nd General
Assembly, as described in subparagraph (A) of this
paragraph (1).
(M) The Agency shall be authorized to retain one or
more experts or expert consulting firms to develop,
administer, implement, operate, and evaluate the
Adjustable Block program described in subparagraph (K) of
this paragraph (1), and the Agency shall retain the
consultant or consultants in the same manner, to the
extent practicable, as the Agency retains others to
administer provisions of this Act, including, but not
limited to, the procurement administrator. The selection
of experts and expert consulting firms and the procurement
process described in this subparagraph (M) are exempt from
the requirements of Section 20-10 of the Illinois
Procurement Code, under Section 20-10 of that Code. The
Agency shall strive to minimize administrative expenses in
the implementation of the Adjustable Block program.
The Agency and its consultant or consultants shall
monitor block activity, share program activity with

SB2248 - 101 - LRB102 17406 SPS 22899 b
stakeholders and conduct regularly scheduled meetings to
discuss program activity and market conditions. If
necessary, the Agency may make prospective administrative
adjustments to the Adjustable Block program design, such
as redistributing available funds or making adjustments to
purchase prices as necessary to achieve the goals of this
subsection (c). Program modifications to any price,
capacity block, or other program element that do not
deviate from the Commission's approved value by more than
25% shall take effect immediately and are not subject to
Commission review and approval. Program modifications to
any price, capacity block, or other program element that
deviate more than 25% from the Commission's approved value
must be approved by the Commission as a long-term plan
amendment under Section 16-111.5 of the Public Utilities
Act. The Agency shall consider stakeholder feedback when
making adjustments to the Adjustable Block design and
shall notify stakeholders in advance of any planned
changes.
Immediately upon the effective date of this amendatory
Act of the 102nd General Assembly, the Agency shall
consider whether changes to Adjustable Block Program
elements of less than 25% can and should be adopted to
bring the Adjustable Block Program in line with the
updated goals and targets of this subsection (c).
(N) The long-term renewable resources procurement plan

SB2248 - 102 - LRB102 17406 SPS 22899 b
required by this subsection (c) shall include a Community
Solar Program for solar photovoltaic community renewable
generation projects and may include additional community
renewable generation programs or procurements open to
other or additional renewable technology program. The
Agency shall establish the terms, conditions, and program
requirements for the Community Solar Program and for any
other program or procurement for community renewable
generation projects with a goal to expand renewable energy
generating facility access to a broader group of energy
consumers, to ensure robust participation opportunities
for residential and small commercial customers and those
who cannot install renewable energy on their own
properties, create opportunities for subscribers to
participate in local renewables projects in both urban and
rural communities across the State, enable communities to
self-organize their own renewables projects, and increase
community ownership of renewables projects. Any plan
approved by the Commission shall allow subscriptions to
community renewable generation projects to be portable and
transferable. For purposes of this subparagraph (N):
"Community" means:
(i) a social unit in which people come
together regularly to effect change;
(ii) a social unit in which participants are
marked by a cooperative spirit, a common purpose,

SB2248 - 103 - LRB102 17406 SPS 22899 b
or shared interests or characteristics; or
(iii) a space understood by its residents to
be delineated through geographic boundaries or
landmarks.
"Community benefit" means:
(i) a range of services and activities that
provide affirmative, economic, environmental,
social, cultural, or physical value to a
community; or
(ii) a mechanism that enables economic
development, high-quality employment, and
education opportunities for local workers and
residents, or formal monitoring and oversight
structures such that community members may ensure
that those services and activities respond to
local knowledge and needs.
"Community ownership" means an arrangement in
which:
(i) an electric generating facility is, or
over time will be, in significant part, owned
collectively by members of the community to which
an electric generating facility provides benefits;
(ii) members of that community participate in
decisions regarding the governance, operation,
maintenance, and upgrades of and to that facility;
and

SB2248 - 104 - LRB102 17406 SPS 22899 b
(iii) members of that community benefit from
regular use of that facility.
"Portable" , "portable" means that subscriptions
may be retained by the subscriber even if the
subscriber relocates or changes its address within the
same utility service territory.
"Stakeholder" means any person or entity with a
declared or conceivable interest in a project.
"Transferable" ; and "transferable" means that a
subscriber may assign or sell subscriptions to another
person within the same utility service territory.
The Community Solar Program established under this
subparagraph (N) shall be designed to give preference to
the procurement of renewable energy credits from projects
that meet one or more of the following community criteria
for a portion of the overall renewable energy credits to
be procured under the Community Solar Program:
(i) include community ownership;
(ii) are put forward by approved vendors or
companies that take higher numbers of the equity
actions described in paragraph (7) of this subsection
(c);
(iii) provide additional community benefit, beyond
project participation as a subscriber;
(iv) ensure meaningful involvement in project
organization and development by nonprofit

SB2248 - 105 - LRB102 17406 SPS 22899 b
organizations, public entities, or community members;
(v) increase the geographic diversity of projects
in the Community Solar Program;
(vi) are also brownfield site photovoltaic
projects;
(vii) ensure engagement in project operations and
management by nonprofit organizations, public
entities, or community members; or
(viii) serve only local subscribers.
Terms and guidance within these criteria that are not
defined in this subparagraph (N) shall be defined by the
Agency, with stakeholder input, during the development of
the Agency's long-term renewable resources procurement
plan.
The Community Solar Program shall procure renewable
energy credits in the following manner:
(1) For a portion of the overall renewable energy
credits to be procured under the Community Solar
Program, the Agency shall initiate a request for
projects that serve a minimum of 50% residential and
small business subscribers and maximize the community
criteria in this subparagraph (N). The Agency shall
score all projects submitted under this request for
projects based on their ability to meet the community
criteria. Both projects that better meet individual
criteria as well as projects that address a higher

SB2248 - 106 - LRB102 17406 SPS 22899 b
number of criteria shall receive a higher score. The
Agency shall also consider renewable energy credit
price when qualifying and scoring projects. The Agency
shall select the highest scoring projects to advance,
subject to budget availability, reserving a portion of
the capacity selected through the request for those
projects that include a community ownership component.
(2) Once projects that maximize the community
criteria have been selected, the Agency shall initiate
a procurement for the remaining renewable energy
credits from photovoltaic community renewable
generation projects needed to meet the goals of
subparagraph (C) of this paragraph (1). The Agency
shall strive to procure renewable energy credits
through the Community Solar Program 4 times per
delivery year. This manner of procuring renewable
energy credits for the Community Solar Program may be
adjusted upon review by the Agency and approval by the
Commission through the long-term renewable resources
procurement plan update process in order to better
meet the goals of this subsection (c) and the
requirements of this subparagraph (N).
Electric utilities shall provide a monetary credit to
a subscriber's subsequent bill for service for the
proportional output of a community renewable generation
project attributable to that subscriber as specified in

SB2248 - 107 - LRB102 17406 SPS 22899 b
Section 16-107.5 of the Public Utilities Act.
The Agency shall procure purchase renewable energy
credits from subscribed shares of photovoltaic community
renewable generation projects through the Community Solar
Program described in this subparagraph (N) Adjustable
Block program described in subparagraph (K) of this
paragraph (1) or through the Illinois Solar for All
Program described in Section 1-56 of this Act. The Agency
shall procure renewable energy credits from unsubscribed
shares of photovoltaic community renewable generation
projects that have achieved a subscription level of 80% or
higher at the average winning price from the most recent
procurement of renewable energy credits from utility-scale
solar photovoltaic projects or another amount established
through the long-term planning process described in
subparagraph (A) of this paragraph (1) of this subsection
(c). The electric utility shall purchase any unsubscribed
energy from community renewable generation projects that
are Qualifying Facilities ("QF") under the electric
utility's tariff for purchasing the output from QFs under
Public Utilities Regulatory Policies Act of 1978.
The owners of and any subscribers to a community
renewable generation project shall not be considered
public utilities or alternative retail electricity
suppliers under the Public Utilities Act solely as a
result of their interest in or subscription to a community

SB2248 - 108 - LRB102 17406 SPS 22899 b
renewable generation project and shall not be required to
become an alternative retail electric supplier by
participating in a community renewable generation project
with a public utility.
(O) For the delivery year beginning June 1, 2018, the
long-term renewable resources procurement plan required by
this subsection (c) shall provide for the Agency to
procure contracts to continue offering the Illinois Solar
for All Program described in subsection (b) of Section
1-56 of this Act, and the contracts approved by the
Commission shall be executed by the utilities that are
subject to this subsection (c). The long-term renewable
resources procurement plan shall allocate 5% of the funds
available under the plan for the applicable delivery year,
or $10,000,000 per delivery year, whichever is greater, to
fund the programs, and the plan shall determine the amount
of funding to be apportioned to the programs identified in
subsection (b) of Section 1-56 of this Act; provided that
for the delivery years beginning June 1, 2017, June 1,
2021, and June 1, 2025, the long-term renewable resources
procurement plan shall allocate 10% of the funds available
under the plan for the applicable delivery year, or
$20,000,000 per delivery year, whichever is greater, and
$10,000,000 of such funds in such year shall be used by an
electric utility that serves more than 3,000,000 retail
customers in the State to implement a Commission-approved

SB2248 - 109 - LRB102 17406 SPS 22899 b
plan under Section 16-108.12 of the Public Utilities Act.
In making the determinations required under this
subparagraph (O), the Commission shall consider the
experience and performance under the programs and any
evaluation reports. The Commission shall also provide for
an independent evaluation of those programs on a periodic
basis that are funded under this subparagraph (O).
(P) The Agency shall give preference to the
procurement of renewable energy credits from new
utility-scale photovoltaic and wind projects that provide
additional land use and environmental benefits such as:
(i) agriculture-friendly benefits;
(ii) pollinator-friendly site practices as
identified in the Pollinator-Friendly Solar Site Act;
(iii) brownfield redevelopment, through location
at sites regulated under any of the programs
identified as a brownfield site photovoltaic project
under Section 1-10;
(iv) vegetative buffers, which are areas
consisting of perennial vegetation, excluding invasive
plants and noxious weeds, adjacent to a body of water
that protects the water resources from runoff
pollution, and stabilizes soils, shores, and banks to
protect or provide riparian corridors;
(v) commitment to land use practices that result
in carbon sequestration;

SB2248 - 110 - LRB102 17406 SPS 22899 b
(vi) land use, design, siting, and construction
practices that minimize interference with natural
habitat and wildlife; and
(vii) other land use or environmental benefits
identified by the Agency with input from stakeholders
received during the long-term renewable resources
procurement plan revision process.
(1.5) No Later than May 31, 2022, all Illinois
electric cooperatives and municipal utilities shall
develop a plan to ensure that their members and customers
have access to renewable energy on a reasonably equivalent
basis to all other residents in the State, including the
overall percentage goals listed in subparagraph (A) of
paragraph (1) of this Section and the carbon-free
resources goals of subsection (k) of this Section 1-75.
These plans shall be developed through a public process
involving municipal utility and cooperative members,
customers, and other members of the public, and shall be
filed with the Illinois Commerce Commission at least every
2 years.
(2) (Blank).
(3) (Blank).
(4) The electric utility shall retire all renewable
energy credits used to comply with the standard.
(5) Beginning with the 2010 delivery year and ending
June 1, 2017, an electric utility subject to this

SB2248 - 111 - LRB102 17406 SPS 22899 b
subsection (c) shall apply the lesser of the maximum
alternative compliance payment rate or the most recent
estimated alternative compliance payment rate for its
service territory for the corresponding compliance period,
established pursuant to subsection (d) of Section 16-115D
of the Public Utilities Act to its retail customers that
take service pursuant to the electric utility's hourly
pricing tariff or tariffs. The electric utility shall
retain all amounts collected as a result of the
application of the alternative compliance payment rate or
rates to such customers, and, beginning in 2011, the
utility shall include in the information provided under
item (1) of subsection (d) of Section 16-111.5 of the
Public Utilities Act the amounts collected under the
alternative compliance payment rate or rates for the prior
year ending May 31. Notwithstanding any limitation on the
procurement of renewable energy resources imposed by item
(2) of this subsection (c), the Agency shall increase its
spending on the purchase of renewable energy resources to
be procured by the electric utility for the next plan year
by an amount equal to the amounts collected by the utility
under the alternative compliance payment rate or rates in
the prior year ending May 31.
(6) The electric utility shall be entitled to recover
all of its costs associated with the procurement of
renewable energy credits under plans approved under this

SB2248 - 112 - LRB102 17406 SPS 22899 b
Section and Section 16-111.5 of the Public Utilities Act.
These costs shall include associated reasonable expenses
for implementing the procurement programs, including, but
not limited to, the costs of administering and evaluating
the Adjustable Block program, through an automatic
adjustment clause tariff in accordance with subsection (k)
of Section 16-108 of the Public Utilities Act.
(7) Renewable energy credits procured from new
photovoltaic projects or new distributed renewable energy
generation devices under this Section after June 1, 2017
(the effective date of Public Act 99-906) must be procured
from devices installed by a qualified person in compliance
with the requirements of Section 16-128A of the Public
Utilities Act and any rules or regulations adopted
thereunder.
In meeting the renewable energy requirements of this
subsection (c), to the extent feasible and consistent with
State and federal law, the renewable energy credit
procurements, Adjustable Block solar program, and
community renewable generation program, and Illinois Solar
for All Program shall provide employment opportunities for
all segments of the population and workforce, including
black, indigenous, and people of color-owned
minority-owned and women-owned female-owned business
enterprises, as well as black, indigenous, and people of
color-owned and women-owned worker-owned cooperatives or

SB2248 - 113 - LRB102 17406 SPS 22899 b
other such employee-owned entities, and shall not,
consistent with State and federal law, discriminate based
on race or socioeconomic status.
Specifically, as the Agency conducts competitive
procurement processes and implements programs to procure
renewable energy credits identified in the long-term
renewable resources procurement plan, the Agency must give
preference to the procurement of renewable energy credits
from those entities, including approved vendors,
companies, nonprofit organizations, and worker-owned
cooperatives, as described in the equity actions points
calculation in this paragraph (7). Entities from whom the
Agency procures renewable energy credits shall comply with
submitting an annual report of elements described in the
equity actions points calculation in this paragraph (7)
for the first 3 years after the year of the procurement
event in which renewable energy credits were procured on
June 1 of each applicable year. For the purposes of this
subsection (c):
"BIPOC" and "black, indigenous, and people of color"
are defined as people who are members of the groups
described in subparagraphs (a) through (e) of paragraph
(A) of subsection (1) of Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act.
"Labor peace agreement" means an agreement between an

SB2248 - 114 - LRB102 17406 SPS 22899 b
entity and any labor organization recognized under the
National Labor Relations Act, referred to in this Act as a
bona fide labor organization, that may prohibit labor
organizations and members from engaging in picketing, work
stoppages, boycotts, and any other economic interference
with the entity. This agreement means that the entity has
agreed not to disrupt efforts by the bona fide labor
organization to communicate with, and attempt to organize
and represent, the entity's employees. The agreement shall
provide a bona fide labor organization access at
reasonable times to areas in which the entity's employees
work, for the purpose of meeting with employees to discuss
their right to representation, employment rights under
State law, and terms and conditions of employment. This
type of agreement shall not mandate a particular method of
election or certification of the bona fide labor
organization.
"Energy worker" means a person who has been employed
full-time for a period of one year or longer, and within
the previous 5 years, at a fossil fuel power plant, a
nuclear power plant, or a coal mine located within the
State of Illinois, whether or not they are employed by the
owner of the power plant or mine. Energy workers are
considered to be full-time if they work at least 35 hours
per week for 45 weeks a year or the 1,820 work-hour
equivalent with vacations, paid holidays, and sick time,

SB2248 - 115 - LRB102 17406 SPS 22899 b
but not overtime, included in this computation.
Classification of an individual as an energy worker
continues for 5 years from the latest date of employment
or the effective date of this Act, whichever is later.
The Illinois Power Agency, using alternative bidding
procedures as provided for in subsection (i) of Section
20-10 of the Illinois Procurement Code, shall track and
award equity actions in bids for the renewable energy
credit procurements, Adjustable Block solar program,
community renewable generation program, and Illinois Solar
for All Program using a points system totaling a maximum
of 260 points. This system shall consider both equity
actions to meet the goals described in paragraph (7), and
the bid prices, as follows:
(A) Hiring Equity Action (up to 20 points):
awarded based on the percentage of the company's or
entity's workforce (measured by full-time equivalents
as defined by the Government Accountability Office of
the United States Congress) who are BIPOC and who are
paid at or above the prevailing wage; one point shall
be awarded for each 5% of the workforce which is
composed of BIPOC who are also paid at or above the
prevailing wage, up to a maximum of 20 points.
(B) Clean Jobs Workforce and Returning Residents
Action (up to 20 points): awarded based on the
percentage of the workers associated with the project

SB2248 - 116 - LRB102 17406 SPS 22899 b
who are graduates or trainees from equity-focused
workforce training programs designated by the Illinois
Power Agency, or have equivalent certification, and
paid at or above the prevailing wage; one point shall
be awarded for each 5% of the workforce which is
composed of such graduates or trainees, up to a
maximum of 20 points.
(C) Minority Business Enterprise Action (30
points): being an entity defined as a minority-owned
business under Section 2 of the Business Enterprise
for Minorities, Women, and Persons with Disabilities
Act or (ii) an entity, including a business, a
nonprofit, or a worker-owned cooperative registered
with other state, regional, or local programs intended
to certify minority-owned businesses.
(D) Contracting Equity Action (20 points): awarded
based on the percentage of the company's or entity's
subcontractors or vendors that are BIPOC-owned
businesses, defined as a minority owned-business or a
woman-owned business under Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act, or awarded based on the percentage
of the subcontracted workers associated with the
project, including from all subcontractors and vendors
that are Black, indigenous, and people of color who
are paid at or above the prevailing wage; 5 points

SB2248 - 117 - LRB102 17406 SPS 22899 b
shall be awarded for each 10% of either subcontractors
or subcontractors' workers who are Black, indigenous,
and people of color, whichever is greater, up to a
maximum of 20 points. Bids may not be eligible for
points under this subjection unless they plan to use
subcontractors. If a company or entity does not use
subcontractors, points awarded for the Contracting
Equity Action shall be equivalent to the point value
awarded for the Hiring Equity Action under
subparagraph (A).
(E) Expanding Clean Energy Entrepreneurship Action
(20 points): awarded to entities who are current or
former participants in contractor incubator programs
or entrepreneurship programs designated by the
Illinois Power Agency, or have equivalent
qualification.
(F) Community Benefits Action (15 points): (i) for
projects 100 kW in size or larger, project has an
executed Community Benefits Agreement that could
include, but is not limited to a commitment to hire
local workers, union workers, energy workers
transitioning to clean energy jobs, graduates or
trainees from equity-focused workforce training
programs designated by the Illinois Power Agency, or
current or former participants in contractor incubator
programs or entrepreneurship programs designated by

SB2248 - 118 - LRB102 17406 SPS 22899 b
the Illinois Power Agency, or have equivalent
qualifications, a commitment to pay workers at or
above the prevailing wage; and a commitment to give
communities ownership opportunities in electric
vehicle projects, where relevant; and (ii) for
projects under 100 kW in size, companies pay their
workforces at or above the prevailing wage.
(G) Small Business Action (15 points): company's
workforce is composed of 3 or fewer full-time
employees (measured by full-time equivalents as
defined by the Government Accountability Office of the
United States Congress).
(H) Labor Peace Agreement Action (10 points): (i)
for a bidder with 20 or more employees: the bidder
attests that the bidder has entered into a labor peace
agreement, will abide by the terms of the agreement,
and will submit a copy of the page of the labor peace
agreement that contains the signatures of the union
representative and the installer, or (ii) for a bidder
that is a party to a labor peace agreement with a bona
fide labor organization that currently represents, or
is actively seeking to represent energy efficiency
installers and other workers in Illinois, or (iii) the
bidder submits an attestation affirming that the
bidder will use best efforts to use union labor in the
bidder's projects and in the construction or retrofit

SB2248 - 119 - LRB102 17406 SPS 22899 b
of the facilities associated with the bidder's
renewable energy operations, where applicable.
(I) Price of bid (130 points): as scored by the
Illinois Power Agency.
Bids scoring fewer than 135 points shall not be
awarded contracts.
(d) Clean coal portfolio standard.
(1) The procurement plans shall include electricity
generated using clean coal. Each utility shall enter into
one or more sourcing agreements with the initial clean
coal facility, as provided in paragraph (3) of this
subsection (d), covering electricity generated by the
initial clean coal facility representing at least 5% of
each utility's total supply to serve the load of eligible
retail customers in 2015 and each year thereafter, as
described in paragraph (3) of this subsection (d), subject
to the limits specified in paragraph (2) of this
subsection (d). It is the goal of the State that by January
1, 2025, 25% of the electricity used in the State shall be
generated by cost-effective clean coal facilities. For
purposes of this subsection (d), "cost-effective" means
that the expenditures pursuant to such sourcing agreements
do not cause the limit stated in paragraph (2) of this
subsection (d) to be exceeded and do not exceed cost-based
benchmarks, which shall be developed to assess all
expenditures pursuant to such sourcing agreements covering

SB2248 - 120 - LRB102 17406 SPS 22899 b
electricity generated by clean coal facilities, other than
the initial clean coal facility, by the procurement
administrator, in consultation with the Commission staff,
Agency staff, and the procurement monitor and shall be
subject to Commission review and approval.
A utility party to a sourcing agreement shall
immediately retire any emission credits that it receives
in connection with the electricity covered by such
agreement.
Utilities shall maintain adequate records documenting
the purchases under the sourcing agreement to comply with
this subsection (d) and shall file an accounting with the
load forecast that must be filed with the Agency by July 15
of each year, in accordance with subsection (d) of Section
16-111.5 of the Public Utilities Act.
A utility shall be deemed to have complied with the
clean coal portfolio standard specified in this subsection
(d) if the utility enters into a sourcing agreement as
required by this subsection (d).
(2) For purposes of this subsection (d), the required
execution of sourcing agreements with the initial clean
coal facility for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) supplied by the electric utility to
eligible retail customers in the planning year ending
immediately prior to the agreement's execution. For

SB2248 - 121 - LRB102 17406 SPS 22899 b
purposes of this subsection (d), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For
purposes of this subsection (d), the total amount paid for
electric service includes without limitation amounts paid
for supply, transmission, distribution, surcharges and
add-on taxes.
Notwithstanding the requirements of this subsection
(d), the total amount paid under sourcing agreements with
clean coal facilities pursuant to the procurement plan for
any given year shall be reduced by an amount necessary to
limit the annual estimated average net increase due to the
costs of these resources included in the amounts paid by
eligible retail customers in connection with electric
service to:
(A) in 2010, no more than 0.5% of the amount paid
per kilowatthour by those customers during the year
ending May 31, 2009;
(B) in 2011, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2010 or 1% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009;
(C) in 2012, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2011 or 1.5% of the

SB2248 - 122 - LRB102 17406 SPS 22899 b
amount paid per kilowatthour by those customers during
the year ending May 31, 2009;
(D) in 2013, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2012 or 2% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009; and
(E) thereafter, the total amount paid under
sourcing agreements with clean coal facilities
pursuant to the procurement plan for any single year
shall be reduced by an amount necessary to limit the
estimated average net increase due to the cost of
these resources included in the amounts paid by
eligible retail customers in connection with electric
service to no more than the greater of (i) 2.015% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2009 or (ii) the
incremental amount per kilowatthour paid for these
resources in 2013. These requirements may be altered
only as provided by statute.
No later than June 30, 2015, the Commission shall
review the limitation on the total amount paid under
sourcing agreements, if any, with clean coal facilities
pursuant to this subsection (d) and report to the General
Assembly its findings as to whether that limitation unduly
constrains the amount of electricity generated by

SB2248 - 123 - LRB102 17406 SPS 22899 b
cost-effective clean coal facilities that is covered by
sourcing agreements.
(3) Initial clean coal facility. In order to promote
development of clean coal facilities in Illinois, each
electric utility subject to this Section shall execute a
sourcing agreement to source electricity from a proposed
clean coal facility in Illinois (the "initial clean coal
facility") that will have a nameplate capacity of at least
500 MW when commercial operation commences, that has a
final Clean Air Act permit on June 1, 2009 (the effective
date of Public Act 95-1027), and that will meet the
definition of clean coal facility in Section 1-10 of this
Act when commercial operation commences. The sourcing
agreements with this initial clean coal facility shall be
subject to both approval of the initial clean coal
facility by the General Assembly and satisfaction of the
requirements of paragraph (4) of this subsection (d) and
shall be executed within 90 days after any such approval
by the General Assembly. The Agency and the Commission
shall have authority to inspect all books and records
associated with the initial clean coal facility during the
term of such a sourcing agreement. A utility's sourcing
agreement for electricity produced by the initial clean
coal facility shall include:
(A) a formula contractual price (the "contract
price") approved pursuant to paragraph (4) of this

SB2248 - 124 - LRB102 17406 SPS 22899 b
subsection (d), which shall:
(i) be determined using a cost of service
methodology employing either a level or deferred
capital recovery component, based on a capital
structure consisting of 45% equity and 55% debt,
and a return on equity as may be approved by the
Federal Energy Regulatory Commission, which in any
case may not exceed the lower of 11.5% or the rate
of return approved by the General Assembly
pursuant to paragraph (4) of this subsection (d);
and
(ii) provide that all miscellaneous net
revenue, including but not limited to net revenue
from the sale of emission allowances, if any,
substitute natural gas, if any, grants or other
support provided by the State of Illinois or the
United States Government, firm transmission
rights, if any, by-products produced by the
facility, energy or capacity derived from the
facility and not covered by a sourcing agreement
pursuant to paragraph (3) of this subsection (d)
or item (5) of subsection (d) of Section 16-115 of
the Public Utilities Act, whether generated from
the synthesis gas derived from coal, from SNG, or
from natural gas, shall be credited against the
revenue requirement for this initial clean coal

SB2248 - 125 - LRB102 17406 SPS 22899 b
facility;
(B) power purchase provisions, which shall:
(i) provide that the utility party to such
sourcing agreement shall pay the contract price
for electricity delivered under such sourcing
agreement;
(ii) require delivery of electricity to the
regional transmission organization market of the
utility that is party to such sourcing agreement;
(iii) require the utility party to such
sourcing agreement to buy from the initial clean
coal facility in each hour an amount of energy
equal to all clean coal energy made available from
the initial clean coal facility during such hour
times a fraction, the numerator of which is such
utility's retail market sales of electricity
(expressed in kilowatthours sold) in the State
during the prior calendar month and the
denominator of which is the total retail market
sales of electricity (expressed in kilowatthours
sold) in the State by utilities during such prior
month and the sales of electricity (expressed in
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this
subsection (d) and paragraph (5) of subsection (d)

SB2248 - 126 - LRB102 17406 SPS 22899 b
of Section 16-115 of the Public Utilities Act,
provided that the amount purchased by the utility
in any year will be limited by paragraph (2) of
this subsection (d); and
(iv) be considered pre-existing contracts in
such utility's procurement plans for eligible
retail customers;
(C) contract for differences provisions, which
shall:
(i) require the utility party to such sourcing
agreement to contract with the initial clean coal
facility in each hour with respect to an amount of
energy equal to all clean coal energy made
available from the initial clean coal facility
during such hour times a fraction, the numerator
of which is such utility's retail market sales of
electricity (expressed in kilowatthours sold) in
the utility's service territory in the State
during the prior calendar month and the
denominator of which is the total retail market
sales of electricity (expressed in kilowatthours
sold) in the State by utilities during such prior
month and the sales of electricity (expressed in
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this

SB2248 - 127 - LRB102 17406 SPS 22899 b
subsection (d) and paragraph (5) of subsection (d)
of Section 16-115 of the Public Utilities Act,
provided that the amount paid by the utility in
any year will be limited by paragraph (2) of this
subsection (d);
(ii) provide that the utility's payment
obligation in respect of the quantity of
electricity determined pursuant to the preceding
clause (i) shall be limited to an amount equal to
(1) the difference between the contract price
determined pursuant to subparagraph (A) of
paragraph (3) of this subsection (d) and the
day-ahead price for electricity delivered to the
regional transmission organization market of the
utility that is party to such sourcing agreement
(or any successor delivery point at which such
utility's supply obligations are financially
settled on an hourly basis) (the "reference
price") on the day preceding the day on which the
electricity is delivered to the initial clean coal
facility busbar, multiplied by (2) the quantity of
electricity determined pursuant to the preceding
clause (i); and
(iii) not require the utility to take physical
delivery of the electricity produced by the
facility;

SB2248 - 128 - LRB102 17406 SPS 22899 b
(D) general provisions, which shall:
(i) specify a term of no more than 30 years,
commencing on the commercial operation date of the
facility;
(ii) provide that utilities shall maintain
adequate records documenting purchases under the
sourcing agreements entered into to comply with
this subsection (d) and shall file an accounting
with the load forecast that must be filed with the
Agency by July 15 of each year, in accordance with
subsection (d) of Section 16-111.5 of the Public
Utilities Act;
(iii) provide that all costs associated with
the initial clean coal facility will be
periodically reported to the Federal Energy
Regulatory Commission and to purchasers in
accordance with applicable laws governing
cost-based wholesale power contracts;
(iv) permit the Illinois Power Agency to
assume ownership of the initial clean coal
facility, without monetary consideration and
otherwise on reasonable terms acceptable to the
Agency, if the Agency so requests no less than 3
years prior to the end of the stated contract
term;
(v) require the owner of the initial clean

SB2248 - 129 - LRB102 17406 SPS 22899 b
coal facility to provide documentation to the
Commission each year, starting in the facility's
first year of commercial operation, accurately
reporting the quantity of carbon emissions from
the facility that have been captured and
sequestered and report any quantities of carbon
released from the site or sites at which carbon
emissions were sequestered in prior years, based
on continuous monitoring of such sites. If, in any
year after the first year of commercial operation,
the owner of the facility fails to demonstrate
that the initial clean coal facility captured and
sequestered at least 50% of the total carbon
emissions that the facility would otherwise emit
or that sequestration of emissions from prior
years has failed, resulting in the release of
carbon dioxide into the atmosphere, the owner of
the facility must offset excess emissions. Any
such carbon offsets must be permanent, additional,
verifiable, real, located within the State of
Illinois, and legally and practicably enforceable.
The cost of such offsets for the facility that are
not recoverable shall not exceed $15 million in
any given year. No costs of any such purchases of
carbon offsets may be recovered from a utility or
its customers. All carbon offsets purchased for

SB2248 - 130 - LRB102 17406 SPS 22899 b
this purpose and any carbon emission credits
associated with sequestration of carbon from the
facility must be permanently retired. The initial
clean coal facility shall not forfeit its
designation as a clean coal facility if the
facility fails to fully comply with the applicable
carbon sequestration requirements in any given
year, provided the requisite offsets are
purchased. However, the Attorney General, on
behalf of the People of the State of Illinois, may
specifically enforce the facility's sequestration
requirement and the other terms of this contract
provision. Compliance with the sequestration
requirements and offset purchase requirements
specified in paragraph (3) of this subsection (d)
shall be reviewed annually by an independent
expert retained by the owner of the initial clean
coal facility, with the advance written approval
of the Attorney General. The Commission may, in
the course of the review specified in item (vii),
reduce the allowable return on equity for the
facility if the facility willfully fails to comply
with the carbon capture and sequestration
requirements set forth in this item (v);
(vi) include limits on, and accordingly
provide for modification of, the amount the

SB2248 - 131 - LRB102 17406 SPS 22899 b
utility is required to source under the sourcing
agreement consistent with paragraph (2) of this
subsection (d);
(vii) require Commission review: (1) to
determine the justness, reasonableness, and
prudence of the inputs to the formula referenced
in subparagraphs (A)(i) through (A)(iii) of
paragraph (3) of this subsection (d), prior to an
adjustment in those inputs including, without
limitation, the capital structure and return on
equity, fuel costs, and other operations and
maintenance costs and (2) to approve the costs to
be passed through to customers under the sourcing
agreement by which the utility satisfies its
statutory obligations. Commission review shall
occur no less than every 3 years, regardless of
whether any adjustments have been proposed, and
shall be completed within 9 months;
(viii) limit the utility's obligation to such
amount as the utility is allowed to recover
through tariffs filed with the Commission,
provided that neither the clean coal facility nor
the utility waives any right to assert federal
pre-emption or any other argument in response to a
purported disallowance of recovery costs;
(ix) limit the utility's or alternative retail

SB2248 - 132 - LRB102 17406 SPS 22899 b
electric supplier's obligation to incur any
liability until such time as the facility is in
commercial operation and generating power and
energy and such power and energy is being
delivered to the facility busbar;
(x) provide that the owner or owners of the
initial clean coal facility, which is the
counterparty to such sourcing agreement, shall
have the right from time to time to elect whether
the obligations of the utility party thereto shall
be governed by the power purchase provisions or
the contract for differences provisions;
(xi) append documentation showing that the
formula rate and contract, insofar as they relate
to the power purchase provisions, have been
approved by the Federal Energy Regulatory
Commission pursuant to Section 205 of the Federal
Power Act;
(xii) provide that any changes to the terms of
the contract, insofar as such changes relate to
the power purchase provisions, are subject to
review under the public interest standard applied
by the Federal Energy Regulatory Commission
pursuant to Sections 205 and 206 of the Federal
Power Act; and
(xiii) conform with customary lender

SB2248 - 133 - LRB102 17406 SPS 22899 b
requirements in power purchase agreements used as
the basis for financing non-utility generators.
(4) Effective date of sourcing agreements with the
initial clean coal facility. Any proposed sourcing
agreement with the initial clean coal facility shall not
become effective unless the following reports are prepared
and submitted and authorizations and approvals obtained:
(i) Facility cost report. The owner of the initial
clean coal facility shall submit to the Commission,
the Agency, and the General Assembly a front-end
engineering and design study, a facility cost report,
method of financing (including but not limited to
structure and associated costs), and an operating and
maintenance cost quote for the facility (collectively
"facility cost report"), which shall be prepared in
accordance with the requirements of this paragraph (4)
of subsection (d) of this Section, and shall provide
the Commission and the Agency access to the work
papers, relied upon documents, and any other backup
documentation related to the facility cost report.
(ii) Commission report. Within 6 months following
receipt of the facility cost report, the Commission,
in consultation with the Agency, shall submit a report
to the General Assembly setting forth its analysis of
the facility cost report. Such report shall include,
but not be limited to, a comparison of the costs

SB2248 - 134 - LRB102 17406 SPS 22899 b
associated with electricity generated by the initial
clean coal facility to the costs associated with
electricity generated by other types of generation
facilities, an analysis of the rate impacts on
residential and small business customers over the life
of the sourcing agreements, and an analysis of the
likelihood that the initial clean coal facility will
commence commercial operation by and be delivering
power to the facility's busbar by 2016. To assist in
the preparation of its report, the Commission, in
consultation with the Agency, may hire one or more
experts or consultants, the costs of which shall be
paid for by the owner of the initial clean coal
facility. The Commission and Agency may begin the
process of selecting such experts or consultants prior
to receipt of the facility cost report.
(iii) General Assembly approval. The proposed
sourcing agreements shall not take effect unless,
based on the facility cost report and the Commission's
report, the General Assembly enacts authorizing
legislation approving (A) the projected price, stated
in cents per kilowatthour, to be charged for
electricity generated by the initial clean coal
facility, (B) the projected impact on residential and
small business customers' bills over the life of the
sourcing agreements, and (C) the maximum allowable

SB2248 - 135 - LRB102 17406 SPS 22899 b
return on equity for the project; and
(iv) Commission review. If the General Assembly
enacts authorizing legislation pursuant to
subparagraph (iii) approving a sourcing agreement, the
Commission shall, within 90 days of such enactment,
complete a review of such sourcing agreement. During
such time period, the Commission shall implement any
directive of the General Assembly, resolve any
disputes between the parties to the sourcing agreement
concerning the terms of such agreement, approve the
form of such agreement, and issue an order finding
that the sourcing agreement is prudent and reasonable.
The facility cost report shall be prepared as follows:
(A) The facility cost report shall be prepared by
duly licensed engineering and construction firms
detailing the estimated capital costs payable to one
or more contractors or suppliers for the engineering,
procurement and construction of the components
comprising the initial clean coal facility and the
estimated costs of operation and maintenance of the
facility. The facility cost report shall include:
(i) an estimate of the capital cost of the
core plant based on one or more front end
engineering and design studies for the
gasification island and related facilities. The
core plant shall include all civil, structural,

SB2248 - 136 - LRB102 17406 SPS 22899 b
mechanical, electrical, control, and safety
systems.
(ii) an estimate of the capital cost of the
balance of the plant, including any capital costs
associated with sequestration of carbon dioxide
emissions and all interconnects and interfaces
required to operate the facility, such as
transmission of electricity, construction or
backfeed power supply, pipelines to transport
substitute natural gas or carbon dioxide, potable
water supply, natural gas supply, water supply,
water discharge, landfill, access roads, and coal
delivery.
The quoted construction costs shall be expressed
in nominal dollars as of the date that the quote is
prepared and shall include capitalized financing costs
during construction, taxes, insurance, and other
owner's costs, and an assumed escalation in materials
and labor beyond the date as of which the construction
cost quote is expressed.
(B) The front end engineering and design study for
the gasification island and the cost study for the
balance of plant shall include sufficient design work
to permit quantification of major categories of
materials, commodities and labor hours, and receipt of
quotes from vendors of major equipment required to

SB2248 - 137 - LRB102 17406 SPS 22899 b
construct and operate the clean coal facility.
(C) The facility cost report shall also include an
operating and maintenance cost quote that will provide
the estimated cost of delivered fuel, personnel,
maintenance contracts, chemicals, catalysts,
consumables, spares, and other fixed and variable
operations and maintenance costs. The delivered fuel
cost estimate will be provided by a recognized third
party expert or experts in the fuel and transportation
industries. The balance of the operating and
maintenance cost quote, excluding delivered fuel
costs, will be developed based on the inputs provided
by duly licensed engineering and construction firms
performing the construction cost quote, potential
vendors under long-term service agreements and plant
operating agreements, or recognized third party plant
operator or operators.
The operating and maintenance cost quote
(including the cost of the front end engineering and
design study) shall be expressed in nominal dollars as
of the date that the quote is prepared and shall
include taxes, insurance, and other owner's costs, and
an assumed escalation in materials and labor beyond
the date as of which the operating and maintenance
cost quote is expressed.
(D) The facility cost report shall also include an

SB2248 - 138 - LRB102 17406 SPS 22899 b
analysis of the initial clean coal facility's ability
to deliver power and energy into the applicable
regional transmission organization markets and an
analysis of the expected capacity factor for the
initial clean coal facility.
(E) Amounts paid to third parties unrelated to the
owner or owners of the initial clean coal facility to
prepare the core plant construction cost quote,
including the front end engineering and design study,
and the operating and maintenance cost quote will be
reimbursed through Coal Development Bonds.
(5) Re-powering and retrofitting coal-fired power
plants previously owned by Illinois utilities to qualify
as clean coal facilities. During the 2009 procurement
planning process and thereafter, the Agency and the
Commission shall consider sourcing agreements covering
electricity generated by power plants that were previously
owned by Illinois utilities and that have been or will be
converted into clean coal facilities, as defined by
Section 1-10 of this Act. Pursuant to such procurement
planning process, the owners of such facilities may
propose to the Agency sourcing agreements with utilities
and alternative retail electric suppliers required to
comply with subsection (d) of this Section and item (5) of
subsection (d) of Section 16-115 of the Public Utilities
Act, covering electricity generated by such facilities. In

SB2248 - 139 - LRB102 17406 SPS 22899 b
the case of sourcing agreements that are power purchase
agreements, the contract price for electricity sales shall
be established on a cost of service basis. In the case of
sourcing agreements that are contracts for differences,
the contract price from which the reference price is
subtracted shall be established on a cost of service
basis. The Agency and the Commission may approve any such
utility sourcing agreements that do not exceed cost-based
benchmarks developed by the procurement administrator, in
consultation with the Commission staff, Agency staff and
the procurement monitor, subject to Commission review and
approval. The Commission shall have authority to inspect
all books and records associated with these clean coal
facilities during the term of any such contract.
(6) Costs incurred under this subsection (d) or
pursuant to a contract entered into under this subsection
(d) shall be deemed prudently incurred and reasonable in
amount and the electric utility shall be entitled to full
cost recovery pursuant to the tariffs filed with the
Commission.
(d-5) Zero emission standard.
(1) Beginning with the delivery year commencing on
June 1, 2017, the Agency shall, for electric utilities
that serve at least 100,000 retail customers in this
State, procure contracts with zero emission facilities
that are reasonably capable of generating cost-effective

SB2248 - 140 - LRB102 17406 SPS 22899 b
zero emission credits in an amount approximately equal to
16% of the actual amount of electricity delivered by each
electric utility to retail customers in the State during
calendar year 2014. For an electric utility serving fewer
than 100,000 retail customers in this State that
requested, under Section 16-111.5 of the Public Utilities
Act, that the Agency procure power and energy for all or a
portion of the utility's Illinois load for the delivery
year commencing June 1, 2016, the Agency shall procure
contracts with zero emission facilities that are
reasonably capable of generating cost-effective zero
emission credits in an amount approximately equal to 16%
of the portion of power and energy to be procured by the
Agency for the utility. The duration of the contracts
procured under this subsection (d-5) shall be for a term
of 10 years ending May 31, 2027. The quantity of zero
emission credits to be procured under the contracts shall
be all of the zero emission credits generated by the zero
emission facility in each delivery year; however, if the
zero emission facility is owned by more than one entity,
then the quantity of zero emission credits to be procured
under the contracts shall be the amount of zero emission
credits that are generated from the portion of the zero
emission facility that is owned by the winning supplier.
The 16% value identified in this paragraph (1) is the
average of the percentage targets in subparagraph (B) of

SB2248 - 141 - LRB102 17406 SPS 22899 b
paragraph (1) of subsection (c) of this Section for the 5
delivery years beginning June 1, 2017.
The procurement process shall be subject to the
following provisions:
(A) Those zero emission facilities that intend to
participate in the procurement shall submit to the
Agency the following eligibility information for each
zero emission facility on or before the date
established by the Agency:
(i) the in-service date and remaining useful
life of the zero emission facility;
(ii) the amount of power generated annually
for each of the years 2005 through 2015, and the
projected zero emission credits to be generated
over the remaining useful life of the zero
emission facility, which shall be used to
determine the capability of each facility;
(iii) the annual zero emission facility cost
projections, expressed on a per megawatthour
basis, over the next 6 delivery years, which shall
include the following: operation and maintenance
expenses; fully allocated overhead costs, which
shall be allocated using the methodology developed
by the Institute for Nuclear Power Operations;
fuel expenditures; non-fuel capital expenditures;
spent fuel expenditures; a return on working

SB2248 - 142 - LRB102 17406 SPS 22899 b
capital; the cost of operational and market risks
that could be avoided by ceasing operation; and
any other costs necessary for continued
operations, provided that "necessary" means, for
purposes of this item (iii), that the costs could
reasonably be avoided only by ceasing operations
of the zero emission facility; and
(iv) a commitment to continue operating, for
the duration of the contract or contracts executed
under the procurement held under this subsection
(d-5), the zero emission facility that produces
the zero emission credits to be procured in the
procurement.
The information described in item (iii) of this
subparagraph (A) may be submitted on a confidential
basis and shall be treated and maintained by the
Agency, the procurement administrator, and the
Commission as confidential and proprietary and exempt
from disclosure under subparagraphs (a) and (g) of
paragraph (1) of Section 7 of the Freedom of
Information Act. The Office of Attorney General shall
have access to, and maintain the confidentiality of,
such information pursuant to Section 6.5 of the
Attorney General Act.
(B) The price for each zero emission credit
procured under this subsection (d-5) for each delivery

SB2248 - 143 - LRB102 17406 SPS 22899 b
year shall be in an amount that equals the Social Cost
of Carbon, expressed on a price per megawatthour
basis. However, to ensure that the procurement remains
affordable to retail customers in this State if
electricity prices increase, the price in an
applicable delivery year shall be reduced below the
Social Cost of Carbon by the amount ("Price
Adjustment") by which the market price index for the
applicable delivery year exceeds the baseline market
price index for the consecutive 12-month period ending
May 31, 2016. If the Price Adjustment is greater than
or equal to the Social Cost of Carbon in an applicable
delivery year, then no payments shall be due in that
delivery year. The components of this calculation are
defined as follows:
(i) Social Cost of Carbon: The Social Cost of
Carbon is $16.50 per megawatthour, which is based
on the U.S. Interagency Working Group on Social
Cost of Carbon's price in the August 2016
Technical Update using a 3% discount rate,
adjusted for inflation for each year of the
program. Beginning with the delivery year
commencing June 1, 2023, the price per
megawatthour shall increase by $1 per
megawatthour, and continue to increase by an
additional $1 per megawatthour each delivery year

SB2248 - 144 - LRB102 17406 SPS 22899 b
thereafter.
(ii) Baseline market price index: The baseline
market price index for the consecutive 12-month
period ending May 31, 2016 is $31.40 per
megawatthour, which is based on the sum of (aa)
the average day-ahead energy price across all
hours of such 12-month period at the PJM
Interconnection LLC Northern Illinois Hub, (bb)
50% multiplied by the Base Residual Auction, or
its successor, capacity price for the rest of the
RTO zone group determined by PJM Interconnection
LLC, divided by 24 hours per day, and (cc) 50%
multiplied by the Planning Resource Auction, or
its successor, capacity price for Zone 4
determined by the Midcontinent Independent System
Operator, Inc., divided by 24 hours per day.
(iii) Market price index: The market price
index for a delivery year shall be the sum of
projected energy prices and projected capacity
prices determined as follows:
(aa) Projected energy prices: the
projected energy prices for the applicable
delivery year shall be calculated once for the
year using the forward market price for the
PJM Interconnection, LLC Northern Illinois
Hub. The forward market price shall be

SB2248 - 145 - LRB102 17406 SPS 22899 b
calculated as follows: the energy forward
prices for each month of the applicable
delivery year averaged for each trade date
during the calendar year immediately preceding
that delivery year to produce a single energy
forward price for the delivery year. The
forward market price calculation shall use
data published by the Intercontinental
Exchange, or its successor.
(bb) Projected capacity prices:
(I) For the delivery years commencing
June 1, 2017, June 1, 2018, and June 1,
2019, the projected capacity price shall
be equal to the sum of (1) 50% multiplied
by the Base Residual Auction, or its
successor, price for the rest of the RTO
zone group as determined by PJM
Interconnection LLC, divided by 24 hours
per day and, (2) 50% multiplied by the
resource auction price determined in the
resource auction administered by the
Midcontinent Independent System Operator,
Inc., in which the largest percentage of
load cleared for Local Resource Zone 4,
divided by 24 hours per day, and where
such price is determined by the

SB2248 - 146 - LRB102 17406 SPS 22899 b
Midcontinent Independent System Operator,
Inc.
(II) For the delivery year commencing
June 1, 2020, and each year thereafter,
the projected capacity price shall be
equal to the sum of (1) 50% multiplied by
the Base Residual Auction, or its
successor, price for the ComEd zone as
determined by PJM Interconnection LLC,
divided by 24 hours per day, and (2) 50%
multiplied by the resource auction price
determined in the resource auction
administered by the Midcontinent
Independent System Operator, Inc., in
which the largest percentage of load
cleared for Local Resource Zone 4, divided
by 24 hours per day, and where such price
is determined by the Midcontinent
Independent System Operator, Inc.
For purposes of this subsection (d-5):
"Rest of the RTO" and "ComEd Zone" shall have
the meaning ascribed to them by PJM
Interconnection, LLC.
"RTO" means regional transmission
organization.
(C) No later than 45 days after June 1, 2017 (the

SB2248 - 147 - LRB102 17406 SPS 22899 b
effective date of Public Act 99-906), the Agency shall
publish its proposed zero emission standard
procurement plan. The plan shall be consistent with
the provisions of this paragraph (1) and shall provide
that winning bids shall be selected based on public
interest criteria that include, but are not limited
to, minimizing carbon dioxide emissions that result
from electricity consumed in Illinois and minimizing
sulfur dioxide, nitrogen oxide, and particulate matter
emissions that adversely affect the residents citizens
of this State. In particular, the selection of winning
bids shall take into account the incremental
environmental benefits resulting from the procurement,
such as any existing environmental benefits that are
preserved by the procurements held under Public Act
99-906 and would cease to exist if the procurements
were not held, including the preservation of zero
emission facilities. The plan shall also describe in
detail how each public interest factor shall be
considered and weighted in the bid selection process
to ensure that the public interest criteria are
applied to the procurement and given full effect.
For purposes of developing the plan, the Agency
shall consider any reports issued by a State agency,
board, or commission under House Resolution 1146 of
the 98th General Assembly and paragraph (4) of

SB2248 - 148 - LRB102 17406 SPS 22899 b
subsection (d) of this Section, as well as publicly
available analyses and studies performed by or for
regional transmission organizations that serve the
State and their independent market monitors.
Upon publishing of the zero emission standard
procurement plan, copies of the plan shall be posted
and made publicly available on the Agency's website.
All interested parties shall have 10 days following
the date of posting to provide comment to the Agency on
the plan. All comments shall be posted to the Agency's
website. Following the end of the comment period, but
no more than 60 days later than June 1, 2017 (the
effective date of Public Act 99-906), the Agency shall
revise the plan as necessary based on the comments
received and file its zero emission standard
procurement plan with the Commission.
If the Commission determines that the plan will
result in the procurement of cost-effective zero
emission credits, then the Commission shall, after
notice and hearing, but no later than 45 days after the
Agency filed the plan, approve the plan or approve
with modification. For purposes of this subsection
(d-5), "cost effective" means the projected costs of
procuring zero emission credits from zero emission
facilities do not cause the limit stated in paragraph
(2) of this subsection to be exceeded.

SB2248 - 149 - LRB102 17406 SPS 22899 b
(C-5) As part of the Commission's review and
acceptance or rejection of the procurement results,
the Commission shall, in its public notice of
successful bidders:
(i) identify how the winning bids satisfy the
public interest criteria described in subparagraph
(C) of this paragraph (1) of minimizing carbon
dioxide emissions that result from electricity
consumed in Illinois and minimizing sulfur
dioxide, nitrogen oxide, and particulate matter
emissions that adversely affect the residents
citizens of this State;
(ii) specifically address how the selection of
winning bids takes into account the incremental
environmental benefits resulting from the
procurement, including any existing environmental
benefits that are preserved by the procurements
held under Public Act 99-906 and would have ceased
to exist if the procurements had not been held,
such as the preservation of zero emission
facilities;
(iii) quantify the environmental benefit of
preserving the resources identified in item (ii)
of this subparagraph (C-5), including the
following:
(aa) the value of avoided greenhouse gas

SB2248 - 150 - LRB102 17406 SPS 22899 b
emissions measured as the product of the zero
emission facilities' output over the contract
term multiplied by the U.S. Environmental
Protection Agency eGrid subregion carbon
dioxide emission rate and the U.S. Interagency
Working Group on Social Cost of Carbon's price
in the August 2016 Technical Update using a 3%
discount rate, adjusted for inflation for each
delivery year; and
(bb) the costs of replacement with other
zero carbon dioxide resources, including wind
and photovoltaic, based upon the simple
average of the following:
(I) the price, or if there is more
than one price, the average of the prices,
paid for renewable energy credits from new
utility-scale wind projects in the
procurement events specified in item (i)
of subparagraph (G) of paragraph (1) of
subsection (c) of this Section; and
(II) the price, or if there is more
than one price, the average of the prices,
paid for renewable energy credits from new
utility-scale solar projects and
brownfield site photovoltaic projects in
the procurement events specified in item

SB2248 - 151 - LRB102 17406 SPS 22899 b
(ii) of subparagraph (G) of paragraph (1)
of subsection (c) of this Section and,
after January 1, 2015, renewable energy
credits from photovoltaic distributed
generation projects in procurement events
held under subsection (c) of this Section.
Each utility shall enter into binding contractual
arrangements with the winning suppliers.
The procurement described in this subsection
(d-5), including, but not limited to, the execution of
all contracts procured, shall be completed no later
than May 10, 2017. Based on the effective date of
Public Act 99-906, the Agency and Commission may, as
appropriate, modify the various dates and timelines
under this subparagraph and subparagraphs (C) and (D)
of this paragraph (1). The procurement and plan
approval processes required by this subsection (d-5)
shall be conducted in conjunction with the procurement
and plan approval processes required by subsection (c)
of this Section and Section 16-111.5 of the Public
Utilities Act, to the extent practicable.
Notwithstanding whether a procurement event is
conducted under Section 16-111.5 of the Public
Utilities Act, the Agency shall immediately initiate a
procurement process on June 1, 2017 (the effective
date of Public Act 99-906).

SB2248 - 152 - LRB102 17406 SPS 22899 b
(D) Following the procurement event described in
this paragraph (1) and consistent with subparagraph
(B) of this paragraph (1), the Agency shall calculate
the payments to be made under each contract for the
next delivery year based on the market price index for
that delivery year. The Agency shall publish the
payment calculations no later than May 25, 2017 and
every May 25 thereafter.
(E) Notwithstanding the requirements of this
subsection (d-5), the contracts executed under this
subsection (d-5) shall provide that the zero emission
facility may, as applicable, suspend or terminate
performance under the contracts in the following
instances:
(i) A zero emission facility shall be excused
from its performance under the contract for any
cause beyond the control of the resource,
including, but not restricted to, acts of God,
flood, drought, earthquake, storm, fire,
lightning, epidemic, war, riot, civil disturbance
or disobedience, labor dispute, labor or material
shortage, sabotage, acts of public enemy,
explosions, orders, regulations or restrictions
imposed by governmental, military, or lawfully
established civilian authorities, which, in any of
the foregoing cases, by exercise of commercially

SB2248 - 153 - LRB102 17406 SPS 22899 b
reasonable efforts the zero emission facility
could not reasonably have been expected to avoid,
and which, by the exercise of commercially
reasonable efforts, it has been unable to
overcome. In such event, the zero emission
facility shall be excused from performance for the
duration of the event, including, but not limited
to, delivery of zero emission credits, and no
payment shall be due to the zero emission facility
during the duration of the event.
(ii) A zero emission facility shall be
permitted to terminate the contract if legislation
is enacted into law by the General Assembly that
imposes or authorizes a new tax, special
assessment, or fee on the generation of
electricity, the ownership or leasehold of a
generating unit, or the privilege or occupation of
such generation, ownership, or leasehold of
generation units by a zero emission facility.
However, the provisions of this item (ii) do not
apply to any generally applicable tax, special
assessment or fee, or requirements imposed by
federal law.
(iii) A zero emission facility shall be
permitted to terminate the contract in the event
that the resource requires capital expenditures in

SB2248 - 154 - LRB102 17406 SPS 22899 b
excess of $40,000,000 that were neither known nor
reasonably foreseeable at the time it executed the
contract and that a prudent owner or operator of
such resource would not undertake.
(iv) A zero emission facility shall be
permitted to terminate the contract in the event
the Nuclear Regulatory Commission terminates the
resource's license.
(F) If the zero emission facility elects to
terminate a contract under subparagraph (E) of this
paragraph (1), then the Commission shall reopen the
docket in which the Commission approved the zero
emission standard procurement plan under subparagraph
(C) of this paragraph (1) and, after notice and
hearing, enter an order acknowledging the contract
termination election if such termination is consistent
with the provisions of this subsection (d-5).
(2) For purposes of this subsection (d-5), the amount
paid per kilowatthour means the total amount paid for
electric service expressed on a per kilowatthour basis.
For purposes of this subsection (d-5), the total amount
paid for electric service includes, without limitation,
amounts paid for supply, transmission, distribution,
surcharges, and add-on taxes.
Notwithstanding the requirements of this subsection
(d-5), the contracts executed under this subsection (d-5)

SB2248 - 155 - LRB102 17406 SPS 22899 b
shall provide that the total of zero emission credits
procured under a procurement plan shall be subject to the
limitations of this paragraph (2). For each delivery year,
the contractual volume receiving payments in such year
shall be reduced for all retail customers based on the
amount necessary to limit the net increase that delivery
year to the costs of those credits included in the amounts
paid by eligible retail customers in connection with
electric service to no more than 1.65% of the amount paid
per kilowatthour by eligible retail customers during the
year ending May 31, 2009. The result of this computation
shall apply to and reduce the procurement for all retail
customers, and all those customers shall pay the same
single, uniform cents per kilowatthour charge under
subsection (k) of Section 16-108 of the Public Utilities
Act. To arrive at a maximum dollar amount of zero emission
credits to be paid for the particular delivery year, the
resulting per kilowatthour amount shall be applied to the
actual amount of kilowatthours of electricity delivered by
the electric utility in the delivery year immediately
prior to the procurement, to all retail customers in its
service territory. Unpaid contractual volume for any
delivery year shall be paid in any subsequent delivery
year in which such payments can be made without exceeding
the amount specified in this paragraph (2). The
calculations required by this paragraph (2) shall be made

SB2248 - 156 - LRB102 17406 SPS 22899 b
only once for each procurement plan year. Once the
determination as to the amount of zero emission credits to
be paid is made based on the calculations set forth in this
paragraph (2), no subsequent rate impact determinations
shall be made and no adjustments to those contract amounts
shall be allowed. All costs incurred under those contracts
and in implementing this subsection (d-5) shall be
recovered by the electric utility as provided in this
Section.
No later than June 30, 2019, the Commission shall
review the limitation on the amount of zero emission
credits procured under this subsection (d-5) and report to
the General Assembly its findings as to whether that
limitation unduly constrains the procurement of
cost-effective zero emission credits.
(3) Six years after the execution of a contract under
this subsection (d-5), the Agency shall determine whether
the actual zero emission credit payments received by the
supplier over the 6-year period exceed the Average ZEC
Payment. In addition, at the end of the term of a contract
executed under this subsection (d-5), or at the time, if
any, a zero emission facility's contract is terminated
under subparagraph (E) of paragraph (1) of this subsection
(d-5), then the Agency shall determine whether the actual
zero emission credit payments received by the supplier
over the term of the contract exceed the Average ZEC

SB2248 - 157 - LRB102 17406 SPS 22899 b
Payment, after taking into account any amounts previously
credited back to the utility under this paragraph (3). If
the Agency determines that the actual zero emission credit
payments received by the supplier over the relevant period
exceed the Average ZEC Payment, then the supplier shall
credit the difference back to the utility. The amount of
the credit shall be remitted to the applicable electric
utility no later than 120 days after the Agency's
determination, which the utility shall reflect as a credit
on its retail customer bills as soon as practicable;
however, the credit remitted to the utility shall not
exceed the total amount of payments received by the
facility under its contract.
For purposes of this Section, the Average ZEC Payment
shall be calculated by multiplying the quantity of zero
emission credits delivered under the contract times the
average contract price. The average contract price shall
be determined by subtracting the amount calculated under
subparagraph (B) of this paragraph (3) from the amount
calculated under subparagraph (A) of this paragraph (3),
as follows:
(A) The average of the Social Cost of Carbon, as
defined in subparagraph (B) of paragraph (1) of this
subsection (d-5), during the term of the contract.
(B) The average of the market price indices, as
defined in subparagraph (B) of paragraph (1) of this

SB2248 - 158 - LRB102 17406 SPS 22899 b
subsection (d-5), during the term of the contract,
minus the baseline market price index, as defined in
subparagraph (B) of paragraph (1) of this subsection
(d-5).
If the subtraction yields a negative number, then the
Average ZEC Payment shall be zero.
(4) Cost-effective zero emission credits procured from
zero emission facilities shall satisfy the applicable
definitions set forth in Section 1-10 of this Act.
(5) The electric utility shall retire all zero
emission credits used to comply with the requirements of
this subsection (d-5).
(6) Electric utilities shall be entitled to recover
all of the costs associated with the procurement of zero
emission credits through an automatic adjustment clause
tariff in accordance with subsection (k) and (m) of
Section 16-108 of the Public Utilities Act, and the
contracts executed under this subsection (d-5) shall
provide that the utilities' payment obligations under such
contracts shall be reduced if an adjustment is required
under subsection (m) of Section 16-108 of the Public
Utilities Act.
(7) This subsection (d-5) shall become inoperative on
January 1, 2028.
(e) The draft procurement plans are subject to public
comment, as required by Section 16-111.5 of the Public

SB2248 - 159 - LRB102 17406 SPS 22899 b
Utilities Act.
(f) The Agency shall submit the final procurement plan to
the Commission. The Agency shall revise a procurement plan if
the Commission determines that it does not meet the standards
set forth in Section 16-111.5 of the Public Utilities Act.
(g) The Agency shall assess fees to each affected utility
to recover the costs incurred in preparation of the annual
procurement plan for the utility.
(h) The Agency shall assess fees to each bidder to recover
the costs incurred in connection with a competitive
procurement process.
(i) A renewable energy credit, carbon emission credit, or
zero emission credit can only be used once to comply with a
single portfolio or other standard as set forth in subsection
(c), subsection (d), or subsection (d-5) of this Section,
respectively. A renewable energy credit, carbon emission
credit, or zero emission credit cannot be used to satisfy the
requirements of more than one standard. If more than one type
of credit is issued for the same megawatt hour of energy, only
one credit can be used to satisfy the requirements of a single
standard. After such use, the credit must be retired together
with any other credits issued for the same megawatt hour of
energy.
(j) Renewable energy supply.
(1) Beginning with the energy to be delivered in the
delivery year commencing on June 1, 2023, the Agency shall

SB2248 - 160 - LRB102 17406 SPS 22899 b
assess the feasibility of procuring cost-effective,
long-term contracts for energy supply from renewable
energy projects, in accordance with the requirements of
Section 16-111.5 of the Public Utilities Act for the
eligible retail customers of electric utilities that on
December 31, 2005 provided electric service to at least
100,000 customers in Illinois.
(2) Long-term contracts as described in this
subsection (j) shall refer to contracts that are
preferably no less than a 15-year period, but in no case
less than a 5-year period.
(3) The Agency shall evaluate energy supply
procurements that enable greater achievement, or more
cost-effective achievement, of the renewable energy goals
in this Section, including through coordination or
bundling with procurements of renewable energy credits, or
capacity from renewable energy resources, as provided
under subparagraph (P) of subsection (c) of this Section,
or capacity from renewable energy resources, as provided
under subsection (k) of this Section.
(4) The Agency shall include in its annual procurement
plan the results of this assessment and any recommended
procurements. The Agency shall, at a minimum, reevaluate
its assessment every 3 years, incorporating new
information from updated data, including, but not limited
to, the results of its procurements, competitive market

SB2248 - 161 - LRB102 17406 SPS 22899 b
trends, and energy procurements in other states.
(k) Capacity procurement.
(1) This Section grants the Illinois Power Agency the
sole authority to conduct auctions for the purpose of
procuring capacity if a public utility in the State elects
to use the Fixed Resource Requirement Alternative as
provided for in the Open Access Transmission Tariff,
Reliability Assurance Agreement, and manuals of PJM
Interconnection, LLC or its successors, and that election
is approved by the Illinois Commerce Commission. Where the
election is approved by the Illinois Commerce Commission,
the Illinois Power Agency shall develop a procurement plan
for the procurement of capacity in amounts necessary to
ensure the public utility's resource adequacy pursuant to
PJM's federally-mandated requirements. The Agency is
authorized to conduct Capacity Procurement auctions as
necessary to meet the public utility's resource
obligations while achieving the objectives set forth in
this Section for the duration of the public utility's
election of the Fixed Resource Requirement Alternative.
(2) The draft procurement plan is subject to public
comment, as required by Section 16-111.5 of the Public
Utilities Act.
(3) The Agency shall design the Capacity Procurement
Plan to achieve the following objectives:
(i) Through one or more auctions which procure

SB2248 - 162 - LRB102 17406 SPS 22899 b
capacity for one or more years, meets the public
utility's resource obligation under the Fixed Resource
Requirement Alternative while maximizing benefits that
meet the State's public interest in the health, safety
and welfare of its residents, including, but not
limited to: significantly reduced emissions in the
State from power generation sources; consumer savings;
and those interests described in subparagraph (I) of
paragraph (1) of subsection (c) of Section 1-75 of the
Illinois Power Agency Act.
(ii) Implements a limiter on auction payments to
all resources that are not renewable energy resources,
demand response, or energy efficiency resources. The
limiter shall be imposed on all other resources such
that total payments under the auction ensure consumer
savings at an amount no less than 5% below a baseline
of previous years' payments.
(iii) Implements a limiter on participating
carbon-emitting resources such that emissions decrease
below a baseline of previous years' emissions.
(4) As part of its Capacity Procurement plans, the
Agency may implement an auction for an optional bundled
product which includes payments to resources that provide
both capacity and renewable energy credits. Renewable
energy resources that are not eligible to participate in
auctions pursuant to subparagraph (J) of paragraph (1) of

SB2248 - 163 - LRB102 17406 SPS 22899 b
subsection (c) of Section 1-75 of the Illinois Power
Agency Act are not eligible to participate in auctions
conducted to implement Capacity Procurement plans.
(Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19;
101-113, eff. 1-1-20.)
Section 15. The Public Utilities Act is amended by
changing Sections 16-107.5, 16-107.6, 16-108, and 16-111.5 and
by adding Sections 8-512 and 16-131 as follows:
(220 ILCS 5/8-512 new)
Sec. 8-512. Renewable energy access plan.
(a) It is the policy of this State to promote
cost-effective transmission system development that ensures
reliability of the electric transmission system, lowers carbon
emissions, minimizes long-term costs for consumers, and
supports the electric policy goals of this State.
The General Assembly finds that:
(1) Transmission planning, primarily for reliability
purposes, but also for economic and public policy reasons
is conducted by regional transmission organizations in
which transmission-owning Illinois utilities and other
stakeholders are members.
(2) Order No. 1000 of the Federal Energy Regulatory
Commission requires regional transmission organizations to
plan for transmission system needs in light of state

SB2248 - 164 - LRB102 17406 SPS 22899 b
public policies, and to accept input from states during
the transmission system planning processes.
(3) The State of Illinois does not currently have a
comprehensive power and environmental policy planning
process to identify transmission infrastructure needs that
can serve as a vital input into the regional and
inter-regional transmission organization planning
processes conducted under Order No. 1000 and other laws.
(4) This State is an electricity generation and power
transmission hub, and can leverage that position to invest
in infrastructure that enables new and existing Illinois
generators to meet the public policy goals of the State of
Illinois and of interconnected states while
cost-effectively supporting tens of thousands of jobs in
the renewable energy sector in this State.
(5) The nation cannot readily access this State's
low-cost, clean electric power, and this State is hindered
in its ability to develop and support its low-carbon
economy and keep electricity prices low in Illinois and
interconnected states.
(6) Existing transmission infrastructure may constrain
the State's achievement of 100% renewable energy by 2050,
a carbon-free power sector by 2030, and an expanded use of
electric vehicles in a just and equitable way.
(7) Transmission system congestion within this State
and the regional transmission organizations serving this

SB2248 - 165 - LRB102 17406 SPS 22899 b
State limits the ability of this State's existing and new
electric generation facilities that do not emit carbon
dioxide, including renewable energy resources and zero
emission facilities, to serve the public policy goals of
this State and other states, which constrains investment
in this State.
(8) Investment in infrastructure to support existing
and new electric generation facilities that do not emit
carbon dioxide, including renewable energy resources and
zero emission facilities, stimulates significant economic
development and job growth in this State, as well as
creates environmental and public health benefits in this
State.
(9) Creating a forward-looking plan for this State's
electric transmission infrastructure, as opposed to
relying on case-by-case development and repeated marginal
upgrades, will achieve a lower-cost system for Illinois'
electricity customers. A forward-looking plan can also
help integrate and achieve a comprehensive set of
objectives and multiple state, regional, and national
policy goals.
(10) Alternatives to overhead electric transmission
lines can achieve cost-effective resolution of system
impacts, and warrant investigation of the circumstances
those alternatives should be considered and approved. The
alternatives are likely to be beneficial as investment in

SB2248 - 166 - LRB102 17406 SPS 22899 b
electric transmission infrastructure moves forward.
(b) Consistent with the findings identified in subsection
(a), the Commission shall open an investigation to deliberate,
develop, and adopt a renewable energy access plan no later
than December 31, 2022. To assist and support the Commission
in the development of the plan, the Commission shall retain
the services of technical and policy experts with relevant
fields of expertise, solicit technical and policy analysis
from the public, and provide for a 120-day open public comment
period after publication of a draft report, which shall be
published no later than 90 days after the comment period ends.
The plan shall, at a minimum, do the following:
(1) designate renewable energy access plan zones
throughout this State in areas in which renewable energy
resources and suitable land areas are sufficient to
develop generating capacity from renewable energy
technologies;
(2) develop a plan to achieve transmission capacity
necessary to deliver to electric customers in Illinois and
other states, in a manner that is most beneficial and
cost-effective to the customers, the electric output from
renewable energy technologies in the renewable energy
access plan zones;
(3) use this State's position as an electricity
generation and power transmission hub to create new
investment in this State's renewable energy resources;

SB2248 - 167 - LRB102 17406 SPS 22899 b
(4) introduce and consider programs, policies, and
electric transmission projects that can be adopted within
this State and advocated for at regional transmission
organizations, that promote the cost-effective delivery of
power from renewable energy resources interconnected to
the bulk electric system to meet the renewable portfolio
standard targets under subsection (c) of Section 1-75 of
the Illinois Power Agency Act, and to meet current and
future public policy goals of other states, the region, or
the nation;
(5) introduce and consider proposals to improve
regional transmission organizations' regional and
interregional system planning processes and an analysis of
how those proposals would improve reliability and
cost-effective delivery of electricity in Illinois and the
region;
(6) the Commission's specific findings, based on
technical and policy analysis, regarding locations of
renewable energy access plan zones, the transmission
system developments needed to cost-effectively achieve the
public policy goals identified herein, any recommended
policies to initiate within this State, or recommended
advocacy at regional transmission organizations; and
(7) the Commission's conclusions and proposed
recommendations based on its analysis.
(c) No later than December 31, 2025, and in each

SB2248 - 168 - LRB102 17406 SPS 22899 b
odd-numbered year thereafter, the Commission shall open an
investigation to deliberate, develop, and adopt an updated
renewable energy access plan that, at a minimum, evaluates the
implementation and effectiveness of the renewable energy
access plan, recommends improvements to the renewable energy
access plan, and provides changes to transmission capacity
necessary to deliver electric output from the renewable energy
access plan zones.
(220 ILCS 5/16-107.5)
Sec. 16-107.5. Net electricity metering.
(a) The General Assembly Legislature finds and declares
that a program to provide net electricity metering, as defined
in this Section, for eligible customers can encourage private
investment in renewable energy resources, stimulate economic
growth, enhance the continued diversification of Illinois'
energy resource mix, and protect the Illinois environment. The
General Assembly further finds and declares that ensuring a
smooth, predictable transition from full net metering of the
retail electricity rate to the distributed generation rebate
described in Section 16-107.6 of this Act is important to
achieve these legislative goals. In implementing the
investigation discussed in subsection (e) of Section 16-107.6
of this Act and the transition discussed in subsection (n) of
this Section 16-107.5, the Commission shall ensure that
distributed generation customers are fairly compensated for

SB2248 - 169 - LRB102 17406 SPS 22899 b
the benefits and services that customer-sited distributed
generation provides and that the distributed generation market
in Illinois continues to experience stable growth for both
small and large customers.
(b) As used in this Section: ,
(i) "Community community renewable generation project" has
shall have the meaning set forth in Section 1-10 of the
Illinois Power Agency Act. ;
"Delivery service provider" means a public utility as
defined in subsection (a) of Section 3-105 of this Act.
"Electricity provider" means an electric utility or
alternative retail electric supplier providing energy supply.
(ii) "Eligible eligible customer" means a retail customer
or retail customers with that owns or operates a solar, wind,
or other eligible renewable electrical generating facility
with a rated capacity of not more than 2,000 kilowatts that is
located on the customer's or customers' side of the billing
meter premises and is intended primarily to offset the
customer's or customers' own current or future electrical
requirements when accounting for shading, orientation, and
other siting factors that can reasonably be expected to alter
an eligible renewable electrical generating facility's
generation output. An eligible customer does not need to own
the solar, wind, or other eligible renewable electrical
generating facility. Subscribers to community renewable
generation projects shall also be considered eligible

SB2248 - 170 - LRB102 17406 SPS 22899 b
customers for the purpose of this Section, including
subscribers to community renewable generation projects that
are larger than 2,000 kilowatts. ; (iii) "electricity provider"
means an electric utility or alternative retail electric
supplier;
(iv) "Eligible eligible renewable electrical generating
facility" means a generator, which may include the co-location
of an energy storage system, that is interconnected under
rules adopted by the Commission and is powered by solar
electric energy, wind, dedicated crops grown for electricity
generation, agricultural residues, untreated and unadulterated
wood waste, landscape trimmings, livestock manure, anaerobic
digestion of livestock or food processing waste, fuel cells or
microturbines powered by renewable fuels, or hydroelectric
energy. ;
"Energy storage system" means commercially available
technology that is capable of absorbing energy and storing it
for a period of time for use at a later time, including, but
not limited to, electrochemical, thermal, and
electromechanical technologies, and may be interconnected on
the customer's side of the billing meter or interconnected via
its own meter.
"Future electrical requirements" means the reasonable
anticipation of load growth, such as from the addition of an
electric vehicle, the addition of electric space heating or
water heating, modeled electrical requirements upon occupation

SB2248 - 171 - LRB102 17406 SPS 22899 b
of a new or vacant property, as well as other reasonable
expectations of future electrical use.
(v) "Net net electricity metering" (or "net metering")
means the measurement, during the billing period applicable to
an eligible customer, of the net amount of electricity
supplied by an electricity provider to the customer customer's
premises or provided to the electricity provider by the
customer or subscriber. ;
"Statewide net metering penetration" means the sum of
nameplate capacity of all net metering facilities in the
State, excluding community renewable generation projects,
divided by the sum of peak demand of electricity delivered by
each delivery service provider (with the peak identified
independently for each provider) in the State during the
previous year.
(vi) "Subscriber subscriber" has shall have the meaning as
set forth in Section 1-10 of the Illinois Power Agency Act. ;
and
(vii) "Subscription subscription" has shall have the
meaning set forth in Section 1-10 of the Illinois Power Agency
Act.
(c) A net metering facility shall be equipped with
metering equipment that can measure the flow of electricity in
both directions at the same rate.
(1) For eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113

SB2248 - 172 - LRB102 17406 SPS 22899 b
of this Act as of July 1, 2011 and whose electric delivery
service is provided and measured on a kilowatt-hour basis
and electric supply service is not provided based on
hourly pricing, this shall typically be accomplished
through use of a single, bi-directional meter. If the
eligible customer's existing electric revenue meter does
not meet this requirement, the electricity provider shall
arrange for the local electric utility or a meter service
provider to install and maintain a new revenue meter at
the electricity provider's expense, which may be the smart
meter described by subsection (b) of Section 16-108.5 of
this Act.
(2) For eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113
of this Act as of July 1, 2011 and whose electric delivery
service is provided and measured on a kilowatt demand
basis and electric supply service is not provided based on
hourly pricing, this shall typically be accomplished
through use of a dual channel meter capable of measuring
the flow of electricity both into and out of the
customer's facility at the same rate and ratio. If such
customer's existing electric revenue meter does not meet
this requirement, then the electricity provider shall
arrange for the local electric utility or a meter service
provider to install and maintain a new revenue meter at
the electricity provider's expense, which may be the smart

SB2248 - 173 - LRB102 17406 SPS 22899 b
meter described by subsection (b) of Section 16-108.5 of
this Act.
(3) For all other eligible customers, until such time
as the local electric utility installs a smart meter, as
described by subsection (b) of Section 16-108.5 of this
Act, the electricity provider may arrange for the local
electric utility or a meter service provider to install
and maintain metering equipment capable of measuring the
flow of electricity both into and out of the customer's
facility at the same rate and ratio, typically through the
use of a dual channel meter. If the eligible customer's
existing electric revenue meter does not meet this
requirement, then the costs of installing such equipment
shall be paid for by the customer.
(d) An electricity provider shall measure and charge or
credit for the net electricity supplied to eligible customers
or provided by eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113 of
this Act as of July 1, 2011 and whose electric delivery service
is provided and measured on a kilowatt-hour basis and electric
supply service is not provided based on hourly pricing in the
following manner:
(1) If the amount of electricity used by the customer
during the billing period exceeds the amount of
electricity produced by the customer, the electricity
provider shall charge the customer for the net electricity

SB2248 - 174 - LRB102 17406 SPS 22899 b
supplied to and used by the customer as provided in
subsection (e-5) of this Section.
(2) If the amount of electricity produced by a
customer during the billing period exceeds the amount of
electricity used by the customer during that billing
period, the electricity provider supplying that customer
shall apply a 1:1 kilowatt-hour credit to a subsequent
bill for service to the customer for the net electricity
supplied to the electricity provider. The electricity
provider shall continue to carry over any excess
kilowatt-hour credits earned and apply those credits to
subsequent billing periods to offset any
customer-generator consumption in those billing periods
until all credits are used or until the end of the
annualized period.
(3) At the end of the year or annualized over the
period that service is supplied by means of net metering,
or in the event that the retail customer terminates
service with the electricity provider prior to the end of
the year or the annualized period, any remaining credits
in the customer's account shall expire.
(d-5) An electricity provider shall measure and charge or
credit for the net electricity supplied to eligible customers
or provided by eligible customers whose electric service has
not been declared competitive pursuant to Section 16-113 of
this Act as of July 1, 2011 and whose electric delivery service

SB2248 - 175 - LRB102 17406 SPS 22899 b
is provided and measured on a kilowatt-hour basis and electric
supply service is provided based on hourly pricing or
time-of-use rates in the following manner:
(1) If the amount of electricity used by the customer
during any hourly or time-of-use period exceeds the amount
of electricity produced by the customer, the electricity
provider shall charge the customer for the net electricity
supplied to and used by the customer according to the
terms of the contract or tariff to which the same customer
would be assigned to or be eligible for if the customer was
not a net metering customer.
(2) If the amount of electricity produced by a
customer during any hourly period or time-of-use period
exceeds the amount of electricity used by the customer
during that hourly period or time-of-use period, the
energy provider shall apply a credit for the net
kilowatt-hours produced in such period. The credit shall
consist of an energy credit and a delivery service credit.
The energy credit shall be valued at the same price per
kilowatt-hour as the electric service provider would
charge for kilowatt-hour energy sales during that same
hourly or time-of-use period. The delivery credit shall be
equal to the net kilowatt-hours produced in such hourly or
time-of-use period times a credit that reflects all
kilowatt-hour based charges in the customer's electric
service rate, excluding energy charges.

SB2248 - 176 - LRB102 17406 SPS 22899 b
(e) An electricity provider shall measure and charge or
credit for the net electricity supplied to eligible customers
whose electric service has not been declared competitive
pursuant to Section 16-113 of this Act as of July 1, 2011 and
whose electric delivery service is provided and measured on a
kilowatt demand basis and electric supply service is not
provided based on hourly pricing in the following manner:
(1) If the amount of electricity used by the customer
during the billing period exceeds the amount of
electricity produced by the customer, then the electricity
provider shall charge the customer for the net electricity
supplied to and used by the customer as provided in
subsection (e-5) of this Section. The customer shall
remain responsible for all taxes, fees, and utility
delivery charges that would otherwise be applicable to the
net amount of electricity used by the customer.
(2) If the amount of electricity produced by a
customer during the billing period exceeds the amount of
electricity used by the customer during that billing
period, then the electricity provider supplying that
customer shall apply a 1:1 kilowatt-hour credit that
reflects the kilowatt-hour based charges in the customer's
electric service rate to a subsequent bill for service to
the customer for the net electricity supplied to the
electricity provider. The electricity provider shall
continue to carry over any excess kilowatt-hour credits

SB2248 - 177 - LRB102 17406 SPS 22899 b
earned and apply those credits to subsequent billing
periods to offset any customer-generator consumption in
those billing periods until all credits are used or until
the end of the annualized period.
(3) At the end of the year or annualized over the
period that service is supplied by means of net metering,
or in the event that the retail customer terminates
service with the electricity provider prior to the end of
the year or the annualized period, any remaining credits
in the customer's account shall expire.
(e-5) An electricity provider shall provide electric
service to eligible customers who utilize net metering at
non-discriminatory rates that are identical, with respect to
rate structure, retail rate components, and any monthly
charges, to the rates that the customer would be charged if not
a net metering customer. An electricity provider shall not
charge net metering customers any fee or charge or require
additional equipment, insurance, or any other requirements not
specifically authorized by interconnection standards
authorized by the Commission, unless the fee, charge, or other
requirement would apply to other similarly situated customers
who are not net metering customers. The customer will remain
responsible for all taxes, fees, and utility delivery charges
that would otherwise be applicable to the net amount of
electricity used by the customer. Subsections (c) through (e)
of this Section shall not be construed to prevent an

SB2248 - 178 - LRB102 17406 SPS 22899 b
arms-length agreement between an electricity provider and an
eligible customer that sets forth different prices, terms, and
conditions for the provision of net metering service,
including, but not limited to, the provision of the
appropriate metering equipment for non-residential customers.
(f) Notwithstanding the requirements of subsections (c)
through (e-5) of this Section, an electricity provider must
require dual-channel metering for customers operating eligible
renewable electrical generating facilities with a nameplate
rating up to 2,000 kilowatts and to whom the provisions of
neither subsection (d), (d-5), nor (e) of this Section apply.
In such cases, electricity charges and credits shall be
determined as follows:
(1) The electricity provider shall assess and the
customer remains responsible for all taxes, fees, and
utility delivery charges that would otherwise be
applicable to the gross amount of kilowatt-hours supplied
to the eligible customer by the electricity provider.
(2) Each month that service is supplied by means of
dual-channel metering, the electricity provider shall
compensate the eligible customer for any excess
kilowatt-hour credits at the electricity provider's
avoided cost of electricity supply over the monthly period
or as otherwise specified by the terms of a power-purchase
agreement negotiated between the customer and electricity
provider.

SB2248 - 179 - LRB102 17406 SPS 22899 b
(3) For all eligible net metering customers taking
service from an electricity provider under contracts or
tariffs employing hourly or time of use rates, any monthly
consumption of electricity shall be calculated according
to the terms of the contract or tariff to which the same
customer would be assigned to or be eligible for if the
customer was not a net metering customer. When those same
customer-generators are net generators during any discrete
hourly or time of use period, the net kilowatt-hours
produced shall be valued at the same price per
kilowatt-hour as the electric service provider would
charge for retail kilowatt-hour sales during that same
time of use period.
(g) For purposes of federal and State laws providing
renewable energy credits or greenhouse gas credits, the
eligible customer shall be treated as owning and having title
to the renewable energy attributes, renewable energy credits,
and greenhouse gas emission credits related to any electricity
produced by the qualified generating unit. The electricity
provider may not condition participation in a net metering
program on the signing over of a customer's renewable energy
credits; provided, however, this subsection (g) shall not be
construed to prevent an arms-length agreement between an
electricity provider and an eligible customer that sets forth
the ownership or title of the credits.
(h) Within 120 days after the effective date of this

SB2248 - 180 - LRB102 17406 SPS 22899 b
amendatory Act of the 95th General Assembly, the Commission
shall establish standards for net metering and, if the
Commission has not already acted on its own initiative,
standards for the interconnection of eligible renewable
generating equipment to the utility system. The
interconnection standards shall address any procedural
barriers, delays, and administrative costs associated with the
interconnection of customer-generation while ensuring the
safety and reliability of the units and the electric utility
system. The Commission shall consider the Institute of
Electrical and Electronics Engineers (IEEE) Standard 1547 and
the issues of (i) reasonable and fair fees and costs, (ii)
clear timelines for major milestones in the interconnection
process, (iii) nondiscriminatory terms of agreement, and (iv)
any best practices for interconnection of distributed
generation.
(h-3) On and after the effective date of this amendatory
Act of the 102nd General Assembly, it is the policy of the
State that:
(1) Electric utilities must provide interconnection
customers with a detailed accounting of the components of
the utility's cost to study and perform system upgrades,
with itemized lists of equipment costs, labor costs,
engineering costs, and administrative costs associated
with the study or system upgrade.
(2) An electric utility that has failed to meet an

SB2248 - 181 - LRB102 17406 SPS 22899 b
interconnection timeline by more than 20 days is subject
to a penalty of $1,000 for each day over 20 days past the
applicable date upon which the utility action was due.
(3) The Illinois Commerce Commission shall, within 60
days after the effective date of this amendatory Act of
the 102nd General Assembly, hire or contract with an
independent grid engineer to address delays and disputes
between the utility and the interconnection customer.
Specifically, this independent engineer shall:
(A) review utility cost estimates at the request
of interconnection customers;
(B) resolve technical disputes between utilities
and interconnection customers regarding necessary
upgrades and costs thereof;
(C) authorize customers to self-supply
interconnection studies when the electric utility is
unable to provide such studies at a reasonable cost
and schedule; and
(D) authorize customers to self-build system
upgrades consistent with electric utility standards
when the electric utility cannot provide such upgrades
and interconnection facilities at a reasonable cost
and schedule.
The process to hire or contract with an independent
grid engineer described in this paragraph (3) is exempt
from the requirements of the Illinois Procurement Code,

SB2248 - 182 - LRB102 17406 SPS 22899 b
pursuant to Section 20-10 of that Code.
(h-5) Within 90 days after the effective date of this
amendatory Act of the 102nd General Assembly, the Commission
shall open a proceeding to update the interconnection
standards and applicable utility tariffs. For the public
interest, safety, and welfare of Illinois residents, the
Commission may adopt emergency rules under Section 5-45 of the
Illinois Administrative Procedure Act to implement the
requirements of subsection (h-3) and this subsection (h-5). In
addition to the requirements of subsection (h-3), the
Commission shall also revise the standards to address critical
standards for interconnection and the following issues:
(1) transparency and accuracy of costs, both direct
and indirect, while maintaining system security through
the effective management of confidentiality agreements;
(2) standardization of typical costs associated with
interconnection;
(3) transparency of the interconnection queue or
queues and hosting capacity;
(4) development of hosting capacity maps that enable
greater visibility to customers about the locations with
the greatest need or availability for distributed
generation;
(5) predictability of the queue management process and
enforcement of timelines;
(6) ability to undertake group interconnection studies

SB2248 - 183 - LRB102 17406 SPS 22899 b
and share interconnection costs among multiple applicants;
(7) minimum requirements for application to the
interconnection process and throughout the interconnection
process to avoid queue clogging behavior;
(8) requirements that the electric utility performing
the interconnection study justify its interconnection
study cost and the estimates of costs for identified
upgrades, and to cap payments required by the
interconnection customer for the electric utility
installed facilities to the lesser of +50% of the
Feasibility Study estimate, +25% of the System Impact
Study estimate, or +10% of the Facilities Study estimate;
(9) facilitation of the deployment of energy storage
systems while ensuring the continued grid safety and
reliability of the system, including addressing the
following:
(A) treatment of energy storage systems as
generation for purposes of the interconnection,
ownership, and operation;
(B) fair study assumptions that reflect the
operational profile of the energy storage device;
(C) streamlined notification-only interconnection
requirements for nonexporting systems that meet
utility criteria for safety and reliability, as is
determined through a robust stakeholder process; and
(D) enabling exports from customer-sited energy

SB2248 - 184 - LRB102 17406 SPS 22899 b
storage systems for participation either in utility
programs or wholesale markets;
(10) establishment of a dispute resolution process
designed to address instances of unreasonable impediments
by the electric utility to the critical standards for
interconnection enumerated in paragraphs (1) through (9)
of this subsection (h-5). The Commission shall make
available adequate Commission staff for this dispute
resolution process to ensure that matters are decided on
an expedited basis; and
(11) other policies, processes, tariffs, and standards
associated with interconnection, including the creation of
standards and processes that support the achievement of
the objectives in subparagraph (K) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois Power
Agency Act
As part of this proceeding initiated under this subsection
(h-5), the Commission shall establish an interconnection
working group. The working group shall include representatives
from electric utilities, developers of renewable electric
generating facilities, representatives of interconnection
customers, Commission staff, and other stakeholders. The
working group shall be facilitated by Commission staff. The
working group shall examine and make recommendations regarding
best practices for interconnection process and customer
service for interconnecting customer adopting distributed

SB2248 - 185 - LRB102 17406 SPS 22899 b
energy resources, including energy storage, interconnection of
new technologies, including smart inverters and energy
storage, and, without limitation, other technical, policy, and
tariff issues related to and affecting interconnection
performance and customer service.
The working group shall report to the Commission on
changes to interconnection rules and tariffs and any other
recommendations as determined by the working group within 6
months after its first meeting. The report shall include
positions and recommendations of the working group and
individual working group members. The report of the working
group shall be entered into evidence in the rulemaking process
mandated by this subsection (h-5). The working group shall be
reconvened one year following the enactment of the rules
adopted pursuant to this subsection (h-5) to recommend any
additional changes and assess the performance of the rules in
meeting the goals as described above.
(i) All electricity providers shall begin to offer net
metering no later than April 1, 2008.
(j) An electricity provider shall provide net metering to
eligible customers until both of the following occur: (i) the
statewide net metering penetration equals 5% and (ii) the
Commission approves the utility tariffs prescribed by
subsection (e) of Section 16-107.6 of this Act that make
distributed generation rebates available to all eligible
customers, including residential customers, and those tariffs

SB2248 - 186 - LRB102 17406 SPS 22899 b
go into effect. After that time the load of its net metering
customers equals 5% of the total peak demand supplied by that
electricity provider during the previous year. After such time
as the load of the electricity provider's net metering
customers equals 5% of the total peak demand supplied by that
electricity provider during the previous year, eligible
customers that begin taking net metering shall no longer be
eligible for netting of delivery service credits as described
in subsection (n) of this Section only be eligible for netting
of energy.
(k) Each electricity provider shall maintain records and
report annually to the Commission the total number of net
metering customers served by the provider, as well as the
type, capacity, and energy sources of the generating systems
used by the net metering customers. Nothing in this Section
shall limit the ability of an electricity provider to request
the redaction of information deemed by the Commission to be
confidential business information.
(l)(1) Notwithstanding the definition of "eligible
customer" in item (ii) of subsection (b) of this Section, each
electricity provider shall allow net metering as set forth in
this subsection (l) and for the following projects:
(A) properties owned or leased by multiple customers
that contribute to the operation of an eligible renewable
electrical generating facility through an ownership or
leasehold interest of at least 200 watts in such facility,

SB2248 - 187 - LRB102 17406 SPS 22899 b
such as a community-owned wind project, a community-owned
biomass project, a community-owned solar project, or a
community methane digester processing livestock waste from
multiple sources, provided that the facility is also
located within the utility's service territory;
(B) individual units, apartments, or properties
located in a single building that are owned or leased by
multiple customers and collectively served by a common
eligible renewable electrical generating facility, such as
an office or apartment building, a shopping center or
strip mall served by photovoltaic panels on the roof; and
(C) subscriptions to community renewable generation
projects, including community renewable generation
projects on the customer's side of the billing meter of a
host facility and partially used for the customer's own
load.
In addition, the nameplate capacity of the eligible
renewable electric generating facility that serves the demand
of the properties, units, or apartments identified in
paragraphs (1) and (2) of this subsection (l) shall not exceed
2,000 kilowatts in nameplate capacity in total. Any eligible
renewable electrical generating facility or community
renewable generation project that is powered by photovoltaic
electric energy and installed after the effective date of this
amendatory Act of the 99th General Assembly must be installed
by a qualified person in compliance with the requirements of

SB2248 - 188 - LRB102 17406 SPS 22899 b
Section 16-128A of the Public Utilities Act and any rules or
regulations adopted thereunder.
(2) Notwithstanding anything to the contrary, an
electricity provider shall provide credits for the electricity
produced by the projects described in paragraph (1) of this
subsection (l). The electricity provider shall provide credits
that include at least energy supply, capacity, transmission,
and the purchased electricity adjustment, as applicable, at
the subscriber's energy supply rate on the subscriber's
monthly bill equal to the subscriber's share of the production
of electricity from the project, as determined by paragraph
(3) of this subsection (l).
(3) For the purposes of facilitating net metering, the
owner or operator of the eligible renewable electrical
generating facility or community renewable generation project
shall be responsible for determining the amount of the credit
that each customer or subscriber participating in a project
under this subsection (l) is to receive in the following
manner:
(A) The owner or operator shall, on a monthly basis,
provide to the electric utility the kilowatthours of
generation attributable to each of the utility's retail
customers and subscribers participating in projects under
this subsection (l) in accordance with the customer's or
subscriber's share of the eligible renewable electric
generating facility's or community renewable generation

SB2248 - 189 - LRB102 17406 SPS 22899 b
project's output of power and energy for such month. The
owner or operator shall electronically transmit such
calculations and associated documentation to the electric
utility, in a format or method set forth in the applicable
tariff, on a monthly basis so that the electric utility
can reflect the monetary credits on customers' and
subscribers' electric utility bills. The electric utility
shall be permitted to revise its tariffs to implement the
provisions of this amendatory Act of the 102nd General
Assembly this amendatory Act of the 99th General Assembly.
The owner or operator shall separately provide the
electric utility with the documentation detailing the
calculations supporting the credit in the manner set forth
in the applicable tariff.
(B) For those participating customers and subscribers
who receive their energy supply from an alternative retail
electric supplier, the electric utility shall remit to the
applicable alternative retail electric supplier the
information provided under subparagraph (A) of this
paragraph (3) for such customers and subscribers in a
manner set forth in such alternative retail electric
supplier's net metering program, or as otherwise agreed
between the utility and the alternative retail electric
supplier. The alternative retail electric supplier shall
then submit to the utility the amount of the charges for
power and energy to be applied to such customers and

SB2248 - 190 - LRB102 17406 SPS 22899 b
subscribers, including the amount of the credit associated
with net metering.
(C) A participating customer or subscriber may provide
authorization as required by applicable law that directs
the electric utility to submit information to the owner or
operator of the eligible renewable electrical generating
facility or community renewable generation project to
which the customer or subscriber has an ownership or
leasehold interest or a subscription. Such information
shall be limited to the components of the net metering
credit calculated under this subsection (l), including the
bill credit rate, total kilowatthours, and total monetary
credit value applied to the customer's or subscriber's
bill for the monthly billing period.
For community renewable generation projects located behind
the meter of a host facility, the determination of the
quantity of energy eligible for crediting to participating
customers or subscribers of the community renewable generation
project shall be based on any energy production of the project
that exceeds the host's instantaneous on-site consumption
during the applicable billing period.
(l-5) Within 90 days after the effective date of this
amendatory Act of the 102nd General Assembly this amendatory
Act of the 99th General Assembly, each electric utility
subject to this Section shall file a tariff to implement the
provisions of subsection (l) of this Section, which shall,

SB2248 - 191 - LRB102 17406 SPS 22899 b
consistent with the provisions of subsection (l), describe the
terms and conditions under which owners or operators of
qualifying properties, units, or apartments may participate in
net metering. The Commission shall approve, or approve with
modification, the tariff within 120 days after the effective
date of this amendatory Act of the 102nd General Assembly this
amendatory Act of the 99th General Assembly.
(m) Nothing in this Section shall affect the right of an
electricity provider to continue to provide, or the right of a
retail customer to continue to receive service pursuant to a
contract for electric service between the electricity provider
and the retail customer in accordance with the prices, terms,
and conditions provided for in that contract. Either the
electricity provider or the customer may require compliance
with the prices, terms, and conditions of the contract.
(n) At such time, if any, that statewide net metering
penetration equals 5% the load of the electricity provider's
net metering customers equals 5% of the total peak demand
supplied by that electricity provider during the previous
year, as specified in subsection (j) of this Section, and the
distributed generation rebate tariff for the electricity
utility prescribed by subsection (e) of Section 16-107.6 of
this Act has gone into effect and the rebate is approved and
available to eligible customers, the net metering services
described in subsections (d), (d-5), (e), (e-5), and (f) of
this Section shall no longer be offered, except as to those

SB2248 - 192 - LRB102 17406 SPS 22899 b
eligible renewable generating facilities for which retail
customers that are receiving net metering service under these
subsections at the time the net metering services under those
subsections are no longer offered; those systems shall
continue to receive net metering services described in
subsections (d), (d-5), (e), (e-5), and (f) of this Section
for the lifetime of the system, regardless of whether those
retail customers change electricity providers or whether the
retail customer benefiting from the system changes. Those
retail customers that begin taking net metering service after
the date that net metering services are no longer offered
under such subsections shall be subject to the provisions set
forth in the following paragraphs (1) through (3) of this
subsection (n):
(1) An electricity provider shall charge or credit for
the net electricity supplied to eligible customers or
provided by eligible customers whose electric supply
service is not provided based on hourly pricing in the
following manner:
(A) If the amount of electricity used by the
customer during the billing period exceeds the amount
of electricity produced by the customer, then the
electricity provider shall charge the customer for the
net kilowatt-hour based electricity charges reflected
in the customer's electric service rate supplied to
and used by the customer as provided in paragraph (3)

SB2248 - 193 - LRB102 17406 SPS 22899 b
of this subsection (n).
(B) If the amount of electricity produced by a
customer during the billing period exceeds the amount
of electricity used by the customer during that
billing period, then the electricity provider
supplying that customer shall apply a 1:1
kilowatt-hour energy credit that reflects the
kilowatt-hour based energy charges in the customer's
electric service rate to a subsequent bill for service
to the customer for the net electricity supplied to
the electricity provider. The electricity provider
shall continue to carry over any excess kilowatt-hour
energy credits earned and apply those credits to
subsequent billing periods to offset any
customer-generator consumption in those billing
periods until all credits are used or until the end of
the annualized period.
(C) At the end of the year or annualized over the
period that service is supplied by means of net
metering, or in the event that the retail customer
terminates service with the electricity provider prior
to the end of the year or the annualized period, any
remaining credits in the customer's account shall
expire.
(2) An electricity provider shall charge or credit for
the net electricity supplied to eligible customers or

SB2248 - 194 - LRB102 17406 SPS 22899 b
provided by eligible customers whose electric supply
service is provided based on hourly pricing in the
following manner:
(A) If the amount of electricity used by the
customer during any hourly period exceeds the amount
of electricity produced by the customer, then the
electricity provider shall charge the customer for the
net electricity supplied to and used by the customer
as provided in paragraph (3) of this subsection (n).
(B) If the amount of electricity produced by a
customer during any hourly period exceeds the amount
of electricity used by the customer during that hourly
period, the energy provider shall calculate an energy
credit for the net kilowatt-hours produced in such
period. The value of the energy credit shall be
calculated using the same price per kilowatt-hour as
the electric service provider would charge for
kilowatt-hour energy sales during that same hourly
period.
(3) An electricity provider shall provide electric
service to eligible customers who utilize net metering at
non-discriminatory rates that are identical, with respect
to rate structure, retail rate components, and any monthly
charges, to the rates that the customer would be charged
if not a net metering customer. An electricity provider
shall charge the customer for the net electricity supplied

SB2248 - 195 - LRB102 17406 SPS 22899 b
to and used by the customer according to the terms of the
contract or tariff to which the same customer would be
assigned or be eligible for if the customer was not a net
metering customer. An electricity provider shall not
charge net metering customers any fee or charge or require
additional equipment, insurance, or any other requirements
not specifically authorized by interconnection standards
authorized by the Commission, unless the fee, charge, or
other requirement would apply to other similarly situated
customers who are not net metering customers. The charge
or credit that the customer receives for net electricity
shall be at a rate equal to the customer's energy supply
rate. The customer remains responsible for the gross
amount of delivery services charges, supply-related
charges that are kilowatt based, and all taxes and fees
related to such charges. The customer also remains
responsible for all taxes and fees that would otherwise be
applicable to the net amount of electricity used by the
customer. Paragraphs (1) and (2) of this subsection (n)
shall not be construed to prevent an arms-length agreement
between an electricity provider and an eligible customer
that sets forth different prices, terms, and conditions
for the provision of net metering service, including, but
not limited to, the provision of the appropriate metering
equipment for non-residential customers. Nothing in this
paragraph (3) shall be interpreted to mandate that a

SB2248 - 196 - LRB102 17406 SPS 22899 b
utility that is only required to provide delivery services
to a given customer must also sell electricity to such
customer.
(o) Within 90 days after the effective date of this
amendatory Act of the 102nd General Assembly, each electric
utility subject to this Section shall file a tariff that
shall, consistent with the provisions of this Section, propose
the terms and conditions under which an eligible customer may
participate in net metering. The Commission shall approve, or
approve with modification based on a stakeholder process, the
tariff within 120 days after the effective date of this
amendatory Act of the 102nd General Assembly. Each electric
utility shall file any changes to terms as a subsequent tariff
for approval or approval with modifications from the
Commission.
(Source: P.A. 99-906, eff. 6-1-17.)
(220 ILCS 5/16-107.6)
Sec. 16-107.6. Distributed generation rebate.
(a) In this Section:
"Distributed energy resource" means a wide range of
technologies that are located on the customer side of the
customer's electric meter and can provide value to the
distribution system, including, but not limited to,
distributed generation, energy storage, electric vehicles, and
demand response technologies.

SB2248 - 197 - LRB102 17406 SPS 22899 b
"Smart inverter" means a device that converts direct
current into alternating current and meets the IEEE 1547-2018
equipment standards. Until devices that meet the IEEE
1547-2018 standard are available, devices that meet the UL
1741 SA standard are acceptable can autonomously contribute to
grid support during excursions from normal operating voltage
and frequency conditions by providing each of the following:
dynamic reactive and real power support, voltage and frequency
ride-through, ramp rate controls, communication systems with
ability to accept external commands, and other functions from
the electric utility.
"Subscriber" has the meaning set forth in Section 1-10 of
the Illinois Power Agency Act.
"Subscription" has the meaning set forth in Section 1-10
of the Illinois Power Agency Act.
"Threshold date" means the date on which statewide net
metering penetration equals 5% the load of an electricity
provider's net metering customers equals 5% of the total peak
demand supplied by that electricity provider during the
previous year, as specified under subsection (j) of Section
16-107.5 of this Act.
(b) An electric utility that serves more than 200,000
customers in the State shall file a petition with the
Commission requesting approval of the utility's tariff to
provide a rebate to a retail customer who owns or operates
distributed generation that meets the following criteria:

SB2248 - 198 - LRB102 17406 SPS 22899 b
(1) has a nameplate generating capacity no greater
than 2,000 kilowatts and is primarily used to offset that
customer's electricity load;
(2) is located on the customer's side of the billing
meter premises, for the customer's own use, and not for
commercial use or sales, including, but not limited to,
wholesale sales of electric power and energy;
(3) is located in the electric utility's service
territory; and
(4) is interconnected under rules adopted by the
Commission by means of the inverter or smart inverter
required by this Section, as applicable.
For purposes of this Section, "distributed generation"
shall satisfy the definition of distributed renewable energy
generation device set forth in Section 1-10 of the Illinois
Power Agency Act to the extent such definition is consistent
with the requirements of this Section.
In addition, any new photovoltaic distributed generation
that is installed after the effective date of this amendatory
Act of the 99th General Assembly must be installed by a
qualified person, as defined by subsection (i) of Section 1-56
of the Illinois Power Agency Act.
The tariff shall provide that the smart inverter
associated with the distributed generation shall provide
autonomous responses to grid conditions through its default
settings as approved by the Commission utility shall be

SB2248 - 199 - LRB102 17406 SPS 22899 b
permitted to operate and control the smart inverter associated
with the distributed generation that is the subject of the
rebate for the purpose of preserving reliability during
distribution system reliability events and shall address the
terms and conditions of the operation and the compensation
associated with the operation. Nothing in this Section shall
negate or supersede Institute of Electrical and Electronics
Engineers equipment interconnection requirements or standards
or other similar standards or requirements. The tariff shall
not limit the ability of the smart inverter or other
distributed energy resource to provide wholesale market
products such as regulation, demand response, or other
services, or limit the ability of the owner of the smart
inverter or the other distributed energy resource to receive
compensation for providing those wholesale market products or
services. The tariff shall also provide for additional uses of
the smart inverter that shall be separately compensated and
which may include, but are not limited to, voltage and VAR
support, regulation, and other grid services. As part of the
proceeding described in subsection (e) of this Section, the
Commission shall review and determine whether smart inverters
can provide any additional uses or services. If the Commission
determines that an additional use or service would be
beneficial, the Commission shall determine the terms and
conditions of the operation and how the use or service should
be separately compensated.

SB2248 - 200 - LRB102 17406 SPS 22899 b
(c) The proposed tariff authorized by subsection (b) of
this Section shall include the following participation terms
and formulae to calculate the value of the rebates to be
applied under this Section for distributed generation that
satisfies the criteria set forth in subsection (b) of this
Section:
(1) Until the utility's tariff or tariffs setting the
new compensation values established under subsection (e)
take effect utility files its tariff or tariffs to place
into effect the rebate values established by the
Commission under subsection (e) of this Section,
non-residential customers that are taking service under a
net metering program offered by an electricity provider
under the terms of Section 16-107.5 of this Act may apply
for a rebate as provided for in this Section. The value of
the rebate shall be $250 per kilowatt of nameplate
generating capacity, measured as nominal DC power output,
of a non-residential customer's distributed generation.
(2) After the utility's tariff or tariffs setting the
new rebate values established under subsection (e) (d) of
this Section take effect, retail customers may, as
applicable, make the following elections:
(A) Residential customers that are taking service
under a net metering program offered by an electricity
provider under the terms of Section 16-107.5 of this
Act on the threshold date may elect to either continue

SB2248 - 201 - LRB102 17406 SPS 22899 b
to take such service under the terms of such program as
in effect on such threshold date for the useful life of
the customer's eligible renewable electric generating
facility as defined in such Section, or file an
application to receive a rebate under the terms of
this Section, provided that such application must be
submitted within 6 months after the effective date of
the tariff approved under subsection (d) of this
Section. The value of the rebate shall be the amount
established by the Commission and reflected in the
utility's tariff approved pursuant to subsection (e)
of this Section.
(B) Non-residential customers that are taking
service under a net metering program offered by an
electricity provider under the terms of Section
16-107.5 of this Act on the threshold date may apply
for a rebate as provided for in this Section. The value
of the rebate shall be the amount established by the
Commission and reflected in the utility's tariff
pursuant to subsection (e) of this Section.
(3) Upon approval of a rebate application submitted
under this subsection (c), the retail customer shall no
longer be entitled to receive any delivery service credits
for the excess electricity generated by its facility and
shall be subject to the provisions of subsection (n) of
Section 16-107.5 of this Act.

SB2248 - 202 - LRB102 17406 SPS 22899 b
(4) To be eligible for a rebate described in this
subsection (c), customers who begin taking service after
the effective date of this amendatory Act of the 99th
General Assembly under a net metering program offered by
an electricity provider under the terms of Section
16-107.5 of this Act must have a smart inverter associated
with the customer's distributed generation.
(d) The Commission shall review the proposed tariff
submitted under subsections (b) and (c) of this Section and
may make changes to the tariff that are consistent with this
Section and with the Commission's authority under Article IX
of this Act, subject to notice and hearing. Following notice
and hearing, the Commission shall issue an order approving, or
approving with modification, such tariff no later than 240
days after the utility files its tariff.
(e) When statewide the total generating capacity of the
electricity provider's net metering penetration, as defined in
Section 16-107.5, customers is equal to 3%, the Commission
shall open an investigation into a an annual process and
formula for calculating the compensation value of rebates for
the retail customers described in subsections (b) and (f) of
this Section that submit rebate applications after the
threshold date for an electric utility that elected to file a
tariff pursuant to this Section. The investigation shall
include, at minimum, diverse sets of stakeholders, a review of
best practices in calculating the value of distributed energy

SB2248 - 203 - LRB102 17406 SPS 22899 b
resource benefits, and assessments of present and future
technological capabilities of distributed energy resources.
Compensation shall reflect all known and measurable values of
the distributed energy resources over their full expected
useful lives. Compensation shall reflect, but shall not be
limited to, any geographic, time-based, performance-based, and
other benefits of distributed energy resources, as well as
technological capabilities and present and future grid needs.
The Commission's final order concluding this investigation
shall establish a formula for the compensation of distributed
energy resources, and an initial set of inputs for that
formula. The Commission's final order concluding this
proceeding shall also direct the utilities to update the
formula, on an annual basis, with inputs derived from their
integrated grid plans developed pursuant to Section 16-105.17.
The Commission shall also determine, as a part of its
investigation under this subsection, whether distributed
energy resources can provide any additional beneficial uses or
services through utility-controlled responses to grid
conditions. If the Commission determines that distributed
energy resources can provide additional beneficial uses or
services, the Commission shall determine the terms and
conditions for the operation and compensation of those uses
and services. That compensation shall be above and beyond any
rebate that the distributed energy resource receives. diverse
sets of stakeholders, calculations for valuing distributed

SB2248 - 204 - LRB102 17406 SPS 22899 b
energy resource benefits to the grid based on best practices,
and assessments of present and future technological
capabilities of distributed energy resources. The value of
such rebates shall reflect the value of the distributed
generation to the distribution system at the location at which
it is interconnected, taking into account the geographic,
time-based, and performance-based benefits, as well as
technological capabilities and present and future grid needs.
The Commission shall consider the electric utility's
integrated grid plan developed pursuant to Section 16-105.17
of this Act to help identify the value of distributed energy
resources for the purpose of calculating the rebates described
in this subsection. The Commission shall determine additional
compensation for distributed generation that creates savings
and value on the distribution system by being co-located or in
close proximity to electric vehicle charging infrastructure in
use by medium-duty and heavy-duty vehicles, primarily serving
environmental justice communities, as outlined in the utility
integrated grid planning process under Section 16-105.17 of
this Act. No later than 10 days after the Commission enters its
final order under this subsection (e), each the utility shall
file its tariff or tariffs in compliance with the order,
including new tariffs for the recovery of costs incurred under
this subsection (e) that shall provide for volumetric-based
cost recovery, and the Commission shall approve, or approve
with modification, the tariff or tariffs within 240 45 days

SB2248 - 205 - LRB102 17406 SPS 22899 b
after the utility's filing. For those rebate applications
filed after the threshold date but before the utility's tariff
or tariffs filed pursuant to this subsection (e) take effect,
the value of the rebate shall remain at the value established
in subsection (c) of this Section until the tariff is
approved. As part of the process, the Commission shall ensure
that the distributed generation rebate results in stable
growth of both small and large distributed generation projects
in Illinois as provided in subsection (j) of Section 16-107.5
of this Act, with particular attention to impacts to the
growth of residential distributed generation customers. The
Commission has the authority to establish interim rebate
values for part or all of a utility's service territory to
ensure transparency and stability of compensation for
distributed energy resources in the utility's service
territory.
(f) Notwithstanding any provision of this Act to the
contrary, the owner, developer, or subscriber of a generation
facility that is part of a net metering program provided under
subsection (l) of Section 16-107.5 shall also be eligible to
apply for the rebate described in this Section. A subscriber
to the generation facility may apply for a rebate in the amount
of the subscriber's subscription only if the owner, developer,
or previous subscriber to the same panel or panels has not
already submitted an application, and, regardless of whether
the subscriber is a residential or non-residential customer,

SB2248 - 206 - LRB102 17406 SPS 22899 b
may be allowed the amount identified in paragraph (1) of
subsection (c) or in subsection (e) of this Section applicable
to such customer on the date that the application is
submitted. An application for a rebate for a portion of a
project described in this subsection (f) may be submitted at
or after the time that a related request for net metering is
made.
(g) No later than 60 days after the utility receives an
application for a rebate under its tariff approved under
subsection (d) or (e) of this Section, the utility shall issue
a rebate to the applicant under the terms of the tariff. In the
event the application is incomplete or the utility is
otherwise unable to calculate the payment based on the
information provided by the owner, the utility shall issue the
payment no later than 60 days after the application is
complete or all requested information is received.
(h) An electric utility shall recover from its retail
customers all of the costs of the rebates made under a tariff
or tariffs approved under subsection (d) of placed into effect
under this Section, including, but not limited to, the value
of the rebates and all costs incurred by the utility to comply
with and implement subsections (b) and (c) of this Section,
but not including costs incurred by the utility to comply with
and implement subsection (e) of this Section, consistent with
the following provisions:
(1) The utility shall defer the full amount of its

SB2248 - 207 - LRB102 17406 SPS 22899 b
costs incurred under this Section as a regulatory asset.
The total costs deferred as a regulatory asset shall be
amortized over a 15-year period. The unamortized balance
shall be recognized as of December 31 for a given year. The
utility shall also earn a return on the total of the
unamortized balance of the regulatory assets, less any
deferred taxes related to the unamortized balance, at an
annual rate equal to the utility's weighted average cost
of capital that includes, based on a year-end capital
structure, the utility's actual cost of debt for the
applicable calendar year and a cost of equity, which shall
be calculated as the sum of (i) the average for the
applicable calendar year of the monthly average yields of
30-year U.S. Treasury bonds published by the Board of
Governors of the Federal Reserve System in its weekly H.15
Statistical Release or successor publication; and (ii) 580
basis points, including a revenue conversion factor
calculated to recover or refund all additional income
taxes that may be payable or receivable as a result of that
return.
When an electric utility creates a regulatory asset
under the provisions of this Section, the costs are
recovered over a period during which customers also
receive a benefit, which is in the public interest.
Accordingly, it is the intent of the General Assembly that
an electric utility that elects to create a regulatory

SB2248 - 208 - LRB102 17406 SPS 22899 b
asset under the provisions of this Section shall recover
all of the associated costs, including, but not limited
to, its cost of capital as set forth in this Section. After
the Commission has approved the prudence and
reasonableness of the costs that comprise the regulatory
asset, the electric utility shall be permitted to recover
all such costs, and the value and recoverability through
rates of the associated regulatory asset shall not be
limited, altered, impaired, or reduced. To enable the
financing of the incremental capital expenditures,
including regulatory assets, for electric utilities that
serve less than 3,000,000 retail customers but more than
500,000 retail customers in the State, the utility's
actual year-end capital structure that includes a common
equity ratio, excluding goodwill, of up to and including
50% of the total capital structure shall be deemed
reasonable and used to set rates.
(2) The utility, at its election, may recover all of
the costs it incurs under this Section as part of a filing
for a general increase in rates under Article IX of this
Act, as part of an annual filing to update a
performance-based formula rate under subsection (d) of
Section 16-108.5 of this Act, or through an automatic
adjustment clause tariff, provided that nothing in this
paragraph (2) permits the double recovery of such costs
from customers. If the utility elects to recover the costs

SB2248 - 209 - LRB102 17406 SPS 22899 b
it incurs under this Section through an automatic
adjustment clause tariff, the utility may file its
proposed tariff together with the tariff it files under
subsection (b) of this Section or at a later time. The
proposed tariff shall provide for an annual
reconciliation, less any deferred taxes related to the
reconciliation, with interest at an annual rate of return
equal to the utility's weighted average cost of capital as
calculated under paragraph (1) of this subsection (h),
including a revenue conversion factor calculated to
recover or refund all additional income taxes that may be
payable or receivable as a result of that return, of the
revenue requirement reflected in rates for each calendar
year, beginning with the calendar year in which the
utility files its automatic adjustment clause tariff under
this subsection (h), with what the revenue requirement
would have been had the actual cost information for the
applicable calendar year been available at the filing
date. The Commission shall review the proposed tariff and
may make changes to the tariff that are consistent with
this Section and with the Commission's authority under
Article IX of this Act, subject to notice and hearing.
Following notice and hearing, the Commission shall issue
an order approving, or approving with modification, such
tariff no later than 240 days after the utility files its
tariff.

SB2248 - 210 - LRB102 17406 SPS 22899 b
(i) An electric utility shall recover from its retail
customers, on a volumetric basis, all of the costs of the
rebates made under a tariff or tariffs placed into effect
under subsection (e) of this Section, including, but not
limited to, the value of the rebates and all costs incurred by
the utility to comply with and implement subsection (e) of
this Section, consistent with the following provisions:
(1) The utility may defer a portion of its costs as a
regulatory asset. The Commission shall determine the
portion that may be appropriately deferred as a regulatory
asset. Factors that the Commission shall consider in
determining the portion of costs that shall be deferred as
a regulatory asset include, but are not limited to: (i)
whether and the extent to which a cost effectively
deferred or avoided other distribution system costs; (ii)
the extent to which a cost provides environmental
benefits; (iii) the extent to which a cost improves system
reliability or resilience; (iv) the electric utility's
distribution system plan developed pursuant to Section
16-108.17 of this Act; and (v) such other factors as the
Commission deems appropriate. The remainder of costs shall
be deemed an operating expense and shall be recoverable if
found prudent and reasonable by the Commission.
The total costs deferred as a regulatory asset shall
be amortized over a 15-year period. The unamortized
balance shall be recognized as of December 31 for a given

SB2248 - 211 - LRB102 17406 SPS 22899 b
year. The utility shall also earn a return on the total of
the unamortized balance of the regulatory assets, less any
deferred taxes related to the unamortized balance, at an
annual rate equal to the utility's weighted average cost
of capital that includes, based on a year-end capital
structure, the utility's actual cost of debt for the
applicable calendar year and a cost of equity, which shall
be calculated as the sum of: (I) the average for the
applicable calendar year of the monthly average yields of
30-year U.S. Treasury bonds published by the Board of
Governors of the Federal Reserve System in its weekly H.15
Statistical Release or successor publication; and (II) 580
basis points, including a revenue conversion factor
calculated to recover or refund all additional income
taxes that may be payable or receivable as a result of that
return.
When an electric utility creates a regulatory asset
under the provisions of this subsection (i), the costs are
recovered over a period during which customers also
receive a benefit, which is in the public interest.
Accordingly, it is the intent of the General Assembly that
an electric utility that elects to create a regulatory
asset under the provisions of this Section shall recover
all of the associated costs, including, but not limited
to, its cost of capital as set forth in this Section. After
the Commission has approved the prudence and

SB2248 - 212 - LRB102 17406 SPS 22899 b
reasonableness of the costs that comprise the regulatory
asset, the electric utility shall be permitted to recover
all such costs, and the value and recoverability through
rates of the associated regulatory asset shall not be
limited, altered, impaired, or reduced. To enable the
financing of the incremental capital expenditures,
including regulatory assets, for electric utilities that
serve less than 3,000,000 retail customers but more than
500,000 retail customers in the State, the utility's
actual year-end capital structure that includes a common
equity ratio, excluding goodwill, of up to and including
50% of the total capital structure shall be deemed
reasonable and used to set rates.
(2) The utility may recover all of the costs through
an automatic adjustment clause tariff, on a volumetric
basis. The utility may file its proposed cost-recovery
tariff together with the tariff it files under subsection
(e) of this Section or at a later time. The proposed tariff
shall provide for an annual reconciliation, less any
deferred taxes related to the reconciliation, with
interest at an annual rate of return equal to the
utility's weighted average cost of capital as calculated
under paragraph (1) of this subsection (i), including a
revenue conversion factor calculated to recover or refund
all additional income taxes that may be payable or
receivable as a result of that return, of the revenue

SB2248 - 213 - LRB102 17406 SPS 22899 b
requirement reflected in rates for each calendar year,
beginning with the calendar year in which the utility
files its automatic adjustment clause tariff under this
subsection (i), with what the revenue requirement would
have been had the actual cost information for the
applicable calendar year been available at the filing
date. The Commission shall review the proposed tariff and
may make changes to the tariff that are consistent with
this Section and with the Commission's authority under
Article IX of this Act, subject to notice and hearing.
Following notice and hearing, the Commission shall issue
an order approving, or approving with modification, such
tariff no later than 240 days after the utility files its
tariff.
(j) (i) No later than 90 days after the Commission enters
an order, or order on rehearing, whichever is later, approving
an electric utility's proposed tariff under subsection (d) of
this Section, the electric utility shall provide notice of the
availability of rebates under this Section. Subsequent to the
utility's notice, any entity that offers in the State, for
sale or lease, distributed generation and estimates the dollar
saving attributable to such distributed generation shall
provide estimates based on both delivery service credits, if
applicable and if available under Section 16-107.5 of this
Act, and the rebates available under this Section.
(Source: P.A. 99-906, eff. 6-1-17.)

SB2248 - 214 - LRB102 17406 SPS 22899 b
(220 ILCS 5/16-108)
Sec. 16-108. Recovery of costs associated with the
provision of delivery and other services.
(a) An electric utility shall file a delivery services
tariff with the Commission at least 210 days prior to the date
that it is required to begin offering such services pursuant
to this Act. An electric utility shall provide the components
of delivery services that are subject to the jurisdiction of
the Federal Energy Regulatory Commission at the same prices,
terms and conditions set forth in its applicable tariff as
approved or allowed into effect by that Commission. The
Commission shall otherwise have the authority pursuant to
Article IX to review, approve, and modify the prices, terms
and conditions of those components of delivery services not
subject to the jurisdiction of the Federal Energy Regulatory
Commission, including the authority to determine the extent to
which such delivery services should be offered on an unbundled
basis. In making any such determination the Commission shall
consider, at a minimum, the effect of additional unbundling on
(i) the objective of just and reasonable rates, (ii) electric
utility employees, and (iii) the development of competitive
markets for electric energy services in Illinois.
(b) The Commission shall enter an order approving, or
approving as modified, the delivery services tariff no later
than 30 days prior to the date on which the electric utility

SB2248 - 215 - LRB102 17406 SPS 22899 b
must commence offering such services. The Commission may
subsequently modify such tariff pursuant to this Act.
(c) The electric utility's tariffs shall define the
classes of its customers for purposes of delivery services
charges. Delivery services shall be priced and made available
to all retail customers electing delivery services in each
such class on a nondiscriminatory basis regardless of whether
the retail customer chooses the electric utility, an affiliate
of the electric utility, or another entity as its supplier of
electric power and energy. Charges for delivery services shall
be cost based, and shall allow the electric utility to recover
the costs of providing delivery services through its charges
to its delivery service customers that use the facilities and
services associated with such costs. Such costs shall include
the costs of owning, operating and maintaining transmission
and distribution facilities. The Commission shall also be
authorized to consider whether, and if so to what extent, the
following costs are appropriately included in the electric
utility's delivery services rates: (i) the costs of that
portion of generation facilities used for the production and
absorption of reactive power in order that retail customers
located in the electric utility's service area can receive
electric power and energy from suppliers other than the
electric utility, and (ii) the costs associated with the use
and redispatch of generation facilities to mitigate
constraints on the transmission or distribution system in

SB2248 - 216 - LRB102 17406 SPS 22899 b
order that retail customers located in the electric utility's
service area can receive electric power and energy from
suppliers other than the electric utility. Nothing in this
subsection shall be construed as directing the Commission to
allocate any of the costs described in (i) or (ii) that are
found to be appropriately included in the electric utility's
delivery services rates to any particular customer group or
geographic area in setting delivery services rates.
(d) The Commission shall establish charges, terms and
conditions for delivery services that are just and reasonable
and shall take into account customer impacts when establishing
such charges. In establishing charges, terms and conditions
for delivery services, the Commission shall take into account
voltage level differences. A retail customer shall have the
option to request to purchase electric service at any delivery
service voltage reasonably and technically feasible from the
electric facilities serving that customer's premises provided
that there are no significant adverse impacts upon system
reliability or system efficiency. A retail customer shall also
have the option to request to purchase electric service at any
point of delivery that is reasonably and technically feasible
provided that there are no significant adverse impacts on
system reliability or efficiency. Such requests shall not be
unreasonably denied.
(e) Electric utilities shall recover the costs of
installing, operating or maintaining facilities for the

SB2248 - 217 - LRB102 17406 SPS 22899 b
particular benefit of one or more delivery services customers,
including without limitation any costs incurred in complying
with a customer's request to be served at a different voltage
level, directly from the retail customer or customers for
whose benefit the costs were incurred, to the extent such
costs are not recovered through the charges referred to in
subsections (c) and (d) of this Section.
(f) An electric utility shall be entitled but not required
to implement transition charges in conjunction with the
offering of delivery services pursuant to Section 16-104. If
an electric utility implements transition charges, it shall
implement such charges for all delivery services customers and
for all customers described in subsection (h), but shall not
implement transition charges for power and energy that a
retail customer takes from cogeneration or self-generation
facilities located on that retail customer's premises, if such
facilities meet the following criteria:
(i) the cogeneration or self-generation facilities
serve a single retail customer and are located on that
retail customer's premises (for purposes of this
subparagraph and subparagraph (ii), an industrial or
manufacturing retail customer and a third party contractor
that is served by such industrial or manufacturing
customer through such retail customer's own electrical
distribution facilities under the circumstances described
in subsection (vi) of the definition of "alternative

SB2248 - 218 - LRB102 17406 SPS 22899 b
retail electric supplier" set forth in Section 16-102,
shall be considered a single retail customer);
(ii) the cogeneration or self-generation facilities
either (A) are sized pursuant to generally accepted
engineering standards for the retail customer's electrical
load at that premises (taking into account standby or
other reliability considerations related to that retail
customer's operations at that site) or (B) if the facility
is a cogeneration facility located on the retail
customer's premises, the retail customer is the thermal
host for that facility and the facility has been designed
to meet that retail customer's thermal energy requirements
resulting in electrical output beyond that retail
customer's electrical demand at that premises, comply with
the operating and efficiency standards applicable to
"qualifying facilities" specified in title 18 Code of
Federal Regulations Section 292.205 as in effect on the
effective date of this amendatory Act of 1999;
(iii) the retail customer on whose premises the
facilities are located either has an exclusive right to
receive, and corresponding obligation to pay for, all of
the electrical capacity of the facility, or in the case of
a cogeneration facility that has been designed to meet the
retail customer's thermal energy requirements at that
premises, an identified amount of the electrical capacity
of the facility, over a minimum 5-year period; and

SB2248 - 219 - LRB102 17406 SPS 22899 b
(iv) if the cogeneration facility is sized for the
retail customer's thermal load at that premises but
exceeds the electrical load, any sales of excess power or
energy are made only at wholesale, are subject to the
jurisdiction of the Federal Energy Regulatory Commission,
and are not for the purpose of circumventing the
provisions of this subsection (f).
If a generation facility located at a retail customer's
premises does not meet the above criteria, an electric utility
implementing transition charges shall implement a transition
charge until December 31, 2006 for any power and energy taken
by such retail customer from such facility as if such power and
energy had been delivered by the electric utility. Provided,
however, that an industrial retail customer that is taking
power from a generation facility that does not meet the above
criteria but that is located on such customer's premises will
not be subject to a transition charge for the power and energy
taken by such retail customer from such generation facility if
the facility does not serve any other retail customer and
either was installed on behalf of the customer and for its own
use prior to January 1, 1997, or is both predominantly fueled
by byproducts of such customer's manufacturing process at such
premises and sells or offers an average of 300 megawatts or
more of electricity produced from such generation facility
into the wholesale market. Such charges shall be calculated as
provided in Section 16-102, and shall be collected on each

SB2248 - 220 - LRB102 17406 SPS 22899 b
kilowatt-hour delivered under a delivery services tariff to a
retail customer from the date the customer first takes
delivery services until December 31, 2006 except as provided
in subsection (h) of this Section. Provided, however, that an
electric utility, other than an electric utility providing
service to at least 1,000,000 customers in this State on
January 1, 1999, shall be entitled to petition for entry of an
order by the Commission authorizing the electric utility to
implement transition charges for an additional period ending
no later than December 31, 2008. The electric utility shall
file its petition with supporting evidence no earlier than 16
months, and no later than 12 months, prior to December 31,
2006. The Commission shall hold a hearing on the electric
utility's petition and shall enter its order no later than 8
months after the petition is filed. The Commission shall
determine whether and to what extent the electric utility
shall be authorized to implement transition charges for an
additional period. The Commission may authorize the electric
utility to implement transition charges for some or all of the
additional period, and shall determine the mitigation factors
to be used in implementing such transition charges; provided,
that the Commission shall not authorize mitigation factors
less than 110% of those in effect during the 12 months ended
December 31, 2006. In making its determination, the Commission
shall consider the following factors: the necessity to
implement transition charges for an additional period in order

SB2248 - 221 - LRB102 17406 SPS 22899 b
to maintain the financial integrity of the electric utility;
the prudence of the electric utility's actions in reducing its
costs since the effective date of this amendatory Act of 1997;
the ability of the electric utility to provide safe, adequate
and reliable service to retail customers in its service area;
and the impact on competition of allowing the electric utility
to implement transition charges for the additional period.
(g) The electric utility shall file tariffs that establish
the transition charges to be paid by each class of customers to
the electric utility in conjunction with the provision of
delivery services. The electric utility's tariffs shall define
the classes of its customers for purposes of calculating
transition charges. The electric utility's tariffs shall
provide for the calculation of transition charges on a
customer-specific basis for any retail customer whose average
monthly maximum electrical demand on the electric utility's
system during the 6 months with the customer's highest monthly
maximum electrical demands equals or exceeds 3.0 megawatts for
electric utilities having more than 1,000,000 customers, and
for other electric utilities for any customer that has an
average monthly maximum electrical demand on the electric
utility's system of one megawatt or more, and (A) for which
there exists data on the customer's usage during the 3 years
preceding the date that the customer became eligible to take
delivery services, or (B) for which there does not exist data
on the customer's usage during the 3 years preceding the date

SB2248 - 222 - LRB102 17406 SPS 22899 b
that the customer became eligible to take delivery services,
if in the electric utility's reasonable judgment there exists
comparable usage information or a sufficient basis to develop
such information, and further provided that the electric
utility can require customers for which an individual
calculation is made to sign contracts that set forth the
transition charges to be paid by the customer to the electric
utility pursuant to the tariff.
(h) An electric utility shall also be entitled to file
tariffs that allow it to collect transition charges from
retail customers in the electric utility's service area that
do not take delivery services but that take electric power or
energy from an alternative retail electric supplier or from an
electric utility other than the electric utility in whose
service area the customer is located. Such charges shall be
calculated, in accordance with the definition of transition
charges in Section 16-102, for the period of time that the
customer would be obligated to pay transition charges if it
were taking delivery services, except that no deduction for
delivery services revenues shall be made in such calculation,
and usage data from the customer's class shall be used where
historical usage data is not available for the individual
customer. The customer shall be obligated to pay such charges
on a lump sum basis on or before the date on which the customer
commences to take service from the alternative retail electric
supplier or other electric utility, provided, that the

SB2248 - 223 - LRB102 17406 SPS 22899 b
electric utility in whose service area the customer is located
shall offer the customer the option of signing a contract
pursuant to which the customer pays such charges ratably over
the period in which the charges would otherwise have applied.
(i) An electric utility shall be entitled to add to the
bills of delivery services customers charges pursuant to
Sections 9-221, 9-222 (except as provided in Section 9-222.1),
and Section 16-114 of this Act, Section 5-5 of the Electricity
Infrastructure Maintenance Fee Law, Section 6-5 of the
Renewable Energy, Energy Efficiency, and Coal Resources
Development Law of 1997, and Section 13 of the Energy
Assistance Act.
(j) If a retail customer that obtains electric power and
energy from cogeneration or self-generation facilities
installed for its own use on or before January 1, 1997,
subsequently takes service from an alternative retail electric
supplier or an electric utility other than the electric
utility in whose service area the customer is located for any
portion of the customer's electric power and energy
requirements formerly obtained from those facilities
(including that amount purchased from the utility in lieu of
such generation and not as standby power purchases, under a
cogeneration displacement tariff in effect as of the effective
date of this amendatory Act of 1997), the transition charges
otherwise applicable pursuant to subsections (f), (g), or (h)
of this Section shall not be applicable in any year to that

SB2248 - 224 - LRB102 17406 SPS 22899 b
portion of the customer's electric power and energy
requirements formerly obtained from those facilities,
provided, that for purposes of this subsection (j), such
portion shall not exceed the average number of kilowatt-hours
per year obtained from the cogeneration or self-generation
facilities during the 3 years prior to the date on which the
customer became eligible for delivery services, except as
provided in subsection (f) of Section 16-110.
(k) The electric utility shall be entitled to recover
through tariffed charges all of the costs associated with the
purchase of zero emission credits from zero emission
facilities to meet the requirements of subsection (d-5) of
Section 1-75 of the Illinois Power Agency Act. Such costs
shall include the costs of procuring the zero emission
credits, as well as the reasonable costs that the utility
incurs as part of the procurement processes and to implement
and comply with plans and processes approved by the Commission
under such subsection (d-5). The costs shall be allocated
across all retail customers through a single, uniform cents
per kilowatt-hour charge applicable to all retail customers,
which shall appear as a separate line item on each customer's
bill. Beginning June 1, 2017, the electric utility shall be
entitled to recover through tariffed charges all of the costs
associated with the purchase of renewable energy resources to
meet the long-term goals and targets of the renewable energy
resource standards of subsection (c) of Section 1-75 of the

SB2248 - 225 - LRB102 17406 SPS 22899 b
Illinois Power Agency Act, under procurement plans as approved
in accordance with that Section and Section 16-111.5 of this
Act. Such costs shall include the costs of procuring the
renewable energy resources, as well as the reasonable costs
that the utility incurs as part of the procurement processes
and to implement and comply with plans and processes approved
by the Commission under such Sections. The costs associated
with the purchase of renewable energy resources shall be
allocated across all retail customers in proportion to the
amount of renewable energy resources the utility procures for
such customers through a single, uniform cents per
kilowatt-hour charge applicable to such retail customers,
which shall appear as a separate line item on each such
customer's bill.
Notwithstanding whether the Commission has approved the
initial long-term renewable resources procurement plan as of
June 1, 2017, an electric utility shall place new tariffed
charges into effect beginning with the June 2017 monthly
billing period, to the extent practicable, to begin recovering
the costs of procuring renewable energy resources, as those
charges are calculated under the limitations described in
subparagraph (E) of paragraph (1) of subsection (c) of Section
1-75 of the Illinois Power Agency Act. Notwithstanding the
date on which the utility places such new tariffed charges
into effect, the utility shall be permitted to collect the
charges under such tariff as if the tariff had been in effect

SB2248 - 226 - LRB102 17406 SPS 22899 b
beginning with the first day of the June 2017 monthly billing
period. Money collected from customers for the procurement of
renewable energy resources in a given delivery may be spent by
the utility for the procurement of renewable resources over
any of the following 5 delivery years, after which money shall
be credited back to retail customers, provided that up to
$170,000,000 of funds collected, but not used, in a given
delivery year are first made available to the Illinois Solar
for All Program established under subsection (b) of Section
1-56 of the Illinois Power Agency Act to cover budget
shortfalls due to unexpected fluctuations in the amount of
money available to that Program from the Illinois Power Agency
Renewable Energy Resources Fund. The electric utility shall
spend all money collected in earlier delivery years that has
not yet been returned to customers, first, before spending
money collected in later delivery years. The For the delivery
years commencing June 1, 2017, June 1, 2018, and June 1, 2019,
the electric utility shall deposit into a separate interest
bearing account of a financial institution the monies
collected under the tariffed charges. Any interest earned
shall be credited back to retail customers under the
reconciliation proceeding provided for in this subsection (k),
provided that the electric utility shall first be reimbursed
from the interest for the administrative costs that it incurs
to administer and manage the account. Any taxes due on the
funds in the account, or interest earned on it, will be paid

SB2248 - 227 - LRB102 17406 SPS 22899 b
from the account or, if insufficient monies are available in
the account, from the monies collected under the tariffed
charges to recover the costs of procuring renewable energy
resources. Monies deposited in the account shall be subject to
the review, reconciliation, and true-up process described in
this subsection (k) that is applicable to the funds collected
and costs incurred for the procurement of renewable energy
resources.
The electric utility shall be entitled to recover all of
the costs identified in this subsection (k) through automatic
adjustment clause tariffs applicable to all of the utility's
retail customers that allow the electric utility to adjust its
tariffed charges consistent with this subsection (k). The
determination as to whether any excess funds were collected
during a given delivery year for the purchase of renewable
energy resources, and the crediting of any excess funds back
to retail customers, shall not be made until after the close of
the delivery year, which will ensure that the maximum amount
of funds is available to implement the approved long-term
renewable resources procurement plan during a given delivery
year. The electric utility's collections under such automatic
adjustment clause tariffs to recover the costs of renewable
energy resources and zero emission credits from zero emission
facilities shall be subject to separate annual review,
reconciliation, and true-up against actual costs by the
Commission under a procedure that shall be specified in the

SB2248 - 228 - LRB102 17406 SPS 22899 b
electric utility's automatic adjustment clause tariffs and
that shall be approved by the Commission in connection with
its approval of such tariffs. The procedure shall provide that
any difference between the electric utility's collections for
zero emission credits under the automatic adjustment charges
for an annual period and the electric utility's actual costs
of renewable energy resources and zero emission credits from
zero emission facilities for that same annual period shall be
refunded to or collected from, as applicable, the electric
utility's retail customers in subsequent periods.
Nothing in this subsection (k) is intended to affect,
limit, or change the right of the electric utility to recover
the costs associated with the procurement of renewable energy
resources for periods commencing before, on, or after June 1,
2017, as otherwise provided in the Illinois Power Agency Act.
Notwithstanding anything to the contrary, the Commission
shall not conduct an annual review, reconciliation, and
true-up associated with renewable energy resources'
collections and costs for the delivery years commencing June
1, 2017, June 1, 2018, June 1, 2019, and June 1, 2020, and
shall instead conduct a single review, reconciliation, and
true-up associated with renewable energy resources'
collections and costs for the 4-year period beginning June 1,
2017 and ending May 31, 2021, provided that the review,
reconciliation, and true-up shall not be initiated until after
August 31, 2021. During the 4-year period, the utility shall

SB2248 - 229 - LRB102 17406 SPS 22899 b
be permitted to collect and retain funds under this subsection
(k) and to purchase renewable energy resources under an
approved long-term renewable resources procurement plan using
those funds regardless of the delivery year in which the funds
were collected during the 4-year period.
If the amount of funds collected during the delivery year
commencing June 1, 2017, exceeds the costs incurred during
that delivery year, then up to half of this excess amount, as
calculated on June 1, 2018, may be used to fund the programs
under subsection (b) of Section 1-56 of the Illinois Power
Agency Act in the same proportion the programs are funded
under that subsection (b). However, any amount identified
under this subsection (k) to fund programs under subsection
(b) of Section 1-56 of the Illinois Power Agency Act shall be
reduced if it exceeds the funding shortfall. For purposes of
this Section, "funding shortfall" means the difference between
$200,000,000 and the amount appropriated by the General
Assembly to the Illinois Power Agency Renewable Energy
Resources Fund during the period that commences on the
effective date of this amendatory act of the 99th General
Assembly and ends on August 1, 2018.
If the amount of funds collected during the delivery year
commencing June 1, 2018, exceeds the costs incurred during
that delivery year, then up to half of this excess amount, as
calculated on June 1, 2019, may be used to fund the programs
under subsection (b) of Section 1-56 of the Illinois Power

SB2248 - 230 - LRB102 17406 SPS 22899 b
Agency Act in the same proportion the programs are funded
under that subsection (b). However, any amount identified
under this subsection (k) to fund programs under subsection
(b) of Section 1-56 of the Illinois Power Agency Act shall be
reduced if it exceeds the funding shortfall.
If the amount of funds collected during the delivery year
commencing June 1, 2019, exceeds the costs incurred during
that delivery year, then up to half of this excess amount, as
calculated on June 1, 2020, may be used to fund the programs
under subsection (b) of Section 1-56 of the Illinois Power
Agency Act in the same proportion the programs are funded
under that subsection (b). However, any amount identified
under this subsection (k) to fund programs under subsection
(b) of Section 1-56 of the Illinois Power Agency Act shall be
reduced if it exceeds the funding shortfall.
The funding available under this subsection (k), if any,
for the programs described under subsection (b) of Section
1-56 of the Illinois Power Agency Act shall not reduce the
amount of funding for the programs described in subparagraph
(O) of paragraph (1) of subsection (c) of Section 1-75 of the
Illinois Power Agency Act. If funding is available under this
subsection (k) for programs described under subsection (b) of
Section 1-56 of the Illinois Power Agency Act, then the
long-term renewable resources plan shall provide for the
Agency to procure contracts in an amount that does not exceed
the funding, and the contracts approved by the Commission

SB2248 - 231 - LRB102 17406 SPS 22899 b
shall be executed by the applicable utility or utilities.
(l) A utility that has terminated any contract executed
under subsection (d-5) of Section 1-75 of the Illinois Power
Agency Act shall be entitled to recover any remaining balance
associated with the purchase of zero emission credits prior to
such termination, and such utility shall also apply a credit
to its retail customer bills in the event of any
over-collection.
(m)(1) An electric utility that recovers its costs of
procuring zero emission credits from zero emission
facilities through a cents-per-kilowatthour charge under
to subsection (k) of this Section shall be subject to the
requirements of this subsection (m). Notwithstanding
anything to the contrary, such electric utility shall,
beginning on April 30, 2018, and each April 30 thereafter
until April 30, 2026, calculate whether any reduction must
be applied to such cents-per-kilowatthour charge that is
paid by retail customers of the electric utility that are
exempt from subsections (a) through (j) of Section 8-103B
of this Act under subsection (l) of Section 8-103B. Such
charge shall be reduced for such customers for the next
delivery year commencing on June 1 based on the amount
necessary, if any, to limit the annual estimated average
net increase for the prior calendar year due to the future
energy investment costs to no more than 1.3% of 5.98 cents
per kilowatt-hour, which is the average amount paid per

SB2248 - 232 - LRB102 17406 SPS 22899 b
kilowatthour for electric service during the year ending
December 31, 2015 by Illinois industrial retail customers,
as reported to the Edison Electric Institute.
The calculations required by this subsection (m) shall
be made only once for each year, and no subsequent rate
impact determinations shall be made.
(2) For purposes of this Section, "future energy
investment costs" shall be calculated by subtracting the
cents-per-kilowatthour charge identified in subparagraph
(A) of this paragraph (2) from the sum of the
cents-per-kilowatthour charges identified in subparagraph
(B) of this paragraph (2):
(A) The cents-per-kilowatthour charge identified
in the electric utility's tariff placed into effect
under Section 8-103 of the Public Utilities Act that,
on December 1, 2016, was applicable to those retail
customers that are exempt from subsections (a) through
(j) of Section 8-103B of this Act under subsection (l)
of Section 8-103B.
(B) The sum of the following
cents-per-kilowatthour charges applicable to those
retail customers that are exempt from subsections (a)
through (j) of Section 8-103B of this Act under
subsection (l) of Section 8-103B, provided that if one
or more of the following charges has been in effect and
applied to such customers for more than one calendar

SB2248 - 233 - LRB102 17406 SPS 22899 b
year, then each charge shall be equal to the average of
the charges applied over a period that commences with
the calendar year ending December 31, 2017 and ends
with the most recently completed calendar year prior
to the calculation required by this subsection (m):
(i) the cents-per-kilowatthour charge to
recover the costs incurred by the utility under
subsection (d-5) of Section 1-75 of the Illinois
Power Agency Act, adjusted for any reductions
required under this subsection (m); and
(ii) the cents-per-kilowatthour charge to
recover the costs incurred by the utility under
Section 16-107.6 of the Public Utilities Act.
If no charge was applied for a given calendar year
under item (i) or (ii) of this subparagraph (B), then
the value of the charge for that year shall be zero.
(3) If a reduction is required by the calculation
performed under this subsection (m), then the amount of
the reduction shall be multiplied by the number of years
reflected in the averages calculated under subparagraph
(B) of paragraph (2) of this subsection (m). Such
reduction shall be applied to the cents-per-kilowatthour
charge that is applicable to those retail customers that
are exempt from subsections (a) through (j) of Section
8-103B of this Act under subsection (l) of Section 8-103B
beginning with the next delivery year commencing after the

SB2248 - 234 - LRB102 17406 SPS 22899 b
date of the calculation required by this subsection (m).
(4) The electric utility shall file a notice with the
Commission on May 1 of 2018 and each May 1 thereafter until
May 1, 2026 containing the reduction, if any, which must
be applied for the delivery year which begins in the year
of the filing. The notice shall contain the calculations
made pursuant to this Section. By October 1 of each year
beginning in 2018, each electric utility shall notify the
Commission if it appears, based on an estimate of the
calculation required in this subsection (m), that a
reduction will be required in the next year.
(Source: P.A. 99-906, eff. 6-1-17.)
(220 ILCS 5/16-111.5)
Sec. 16-111.5. Provisions relating to procurement.
(a) An electric utility that on December 31, 2005 served
at least 100,000 customers in Illinois shall procure power and
energy for its eligible retail customers in accordance with
the applicable provisions set forth in Section 1-75 of the
Illinois Power Agency Act and this Section. Beginning with the
delivery year commencing on June 1, 2017, such electric
utility shall also procure zero emission credits from zero
emission facilities in accordance with the applicable
provisions set forth in Section 1-75 of the Illinois Power
Agency Act, and, for years beginning on or after June 1, 2017,
the utility shall procure renewable energy resources in

SB2248 - 235 - LRB102 17406 SPS 22899 b
accordance with the applicable provisions set forth in Section
1-75 of the Illinois Power Agency Act and this Section.
Beginning with the delivery year commencing June 1, 2023, an
electric utility that, on December 31, 2005, served at least
3,000,000 customers in Illinois shall procure capacity for its
retail customers in accordance with the applicable provisions
set forth in Section 1-75 of the Illinois Power Agency Act and
this Section. A small multi-jurisdictional electric utility
that on December 31, 2005 served less than 100,000 customers
in Illinois may elect to procure power and energy for all or a
portion of its eligible Illinois retail customers in
accordance with the applicable provisions set forth in this
Section and Section 1-75 of the Illinois Power Agency Act.
This Section shall not apply to a small multi-jurisdictional
utility until such time as a small multi-jurisdictional
utility requests the Illinois Power Agency to prepare a
procurement plan for its eligible retail customers. "Eligible
retail customers" for the purposes of this Section means those
retail customers that purchase power and energy from the
electric utility under fixed-price bundled service tariffs,
other than those retail customers whose service is declared or
deemed competitive under Section 16-113 and those other
customer groups specified in this Section, including
self-generating customers, customers electing hourly pricing,
or those customers who are otherwise ineligible for
fixed-price bundled tariff service. For those customers that

SB2248 - 236 - LRB102 17406 SPS 22899 b
are excluded from the procurement plan's electric supply
service requirements, and the utility shall procure any supply
requirements, including capacity, ancillary services, and
hourly priced energy, in the applicable markets as needed to
serve those customers, provided that the utility may include
in its procurement plan load requirements for the load that is
associated with those retail customers whose service has been
declared or deemed competitive pursuant to Section 16-113 of
this Act to the extent that those customers are purchasing
power and energy during one of the transition periods
identified in subsection (b) of Section 16-113 of this Act.
(b) A procurement plan shall be prepared for each electric
utility consistent with the applicable requirements of the
Illinois Power Agency Act and this Section. For purposes of
this Section, Illinois electric utilities that are affiliated
by virtue of a common parent company are considered to be a
single electric utility. Small multi-jurisdictional utilities
may request a procurement plan for a portion of or all of its
Illinois load. Each procurement plan shall analyze the
projected balance of supply and demand for those retail
customers to be included in the plan's electric supply service
requirements over a 5-year period, with the first planning
year beginning on June 1 of the year following the year in
which the plan is filed. The plan shall specifically identify
the carbon-free capacity to be procured, as described in
Section 1-75 of the Illinois Power Agency Act, and the

SB2248 - 237 - LRB102 17406 SPS 22899 b
wholesale products to be procured following plan approval, and
shall follow all the requirements set forth in the Public
Utilities Act and all applicable State and federal laws,
statutes, rules, or regulations, as well as Commission orders.
Nothing in this Section precludes consideration of contracts
longer than 5 years and related forecast data. Unless
specified otherwise in this Section, in the procurement plan
or in the implementing tariff, any procurement occurring in
accordance with this plan shall be competitively bid through a
request for proposals process. Approval and implementation of
the procurement plan shall be subject to review and approval
by the Commission according to the provisions set forth in
this Section. A procurement plan shall include each of the
following components:
(1) Hourly load analysis. This analysis shall include:
(i) multi-year historical analysis of hourly
loads;
(ii) switching trends and competitive retail
market analysis;
(iii) known or projected changes to future loads;
and
(iv) growth forecasts by customer class.
(2) Analysis of the impact of any demand side and
renewable energy initiatives. This analysis shall include:
(i) the impact of demand response programs and
energy efficiency programs, both current and

SB2248 - 238 - LRB102 17406 SPS 22899 b
projected; for small multi-jurisdictional utilities,
the impact of demand response and energy efficiency
programs approved pursuant to Section 8-408 of this
Act, both current and projected; and
(ii) supply side needs that are projected to be
offset by purchases of renewable energy resources, if
any.
(3) A plan for meeting the expected load requirements
that will not be met through preexisting contracts. This
plan shall include:
(i) definitions of the different Illinois retail
customer classes for which supply is being purchased;
(ii) the proposed mix of demand-response products
for which contracts will be executed during the next
year. For small multi-jurisdictional electric
utilities that on December 31, 2005 served fewer than
100,000 customers in Illinois, these shall be defined
as demand-response products offered in an energy
efficiency plan approved pursuant to Section 8-408 of
this Act. The cost-effective demand-response measures
shall be procured whenever the cost is lower than
procuring comparable capacity products, provided that
such products shall:
(A) be procured by a demand-response provider
from those retail customers included in the plan's
electric supply service requirements;

SB2248 - 239 - LRB102 17406 SPS 22899 b
(B) at least satisfy the demand-response
requirements of the regional transmission
organization market in which the utility's service
territory is located, including, but not limited
to, any applicable capacity or dispatch
requirements;
(C) provide for customers' participation in
the stream of benefits produced by the
demand-response products;
(D) provide for reimbursement by the
demand-response provider of the utility for any
costs incurred as a result of the failure of the
supplier of such products to perform its
obligations thereunder; and
(E) meet the same credit requirements as apply
to suppliers of capacity, in the applicable
regional transmission organization market;
(iii) monthly forecasted system supply
requirements, including expected minimum, maximum, and
average values for the planning period;
(iv) the proposed mix and selection of standard
wholesale products for which contracts will be
executed during the next year, separately or in
combination, to meet that portion of its load
requirements not met through pre-existing contracts,
including, but not limited to, monthly 5 x 16 peak

SB2248 - 240 - LRB102 17406 SPS 22899 b
period block energy, monthly off-peak wrap energy,
monthly 7 x 24 energy, annual 5 x 16 energy, annual
off-peak wrap energy, annual 7 x 24 energy, monthly
capacity, annual capacity, peak load capacity
obligations, capacity purchase plan, and ancillary
services;
(v) proposed term structures for each wholesale
product type included in the proposed procurement plan
portfolio of products; and
(vi) an assessment of the price risk, load
uncertainty, and other factors that are associated
with the proposed procurement plan; this assessment,
to the extent possible, shall include an analysis of
the following factors: contract terms, time frames for
securing products or services, fuel costs, weather
patterns, transmission costs, market conditions, and
the governmental regulatory environment; the proposed
procurement plan shall also identify alternatives for
those portfolio measures that are identified as having
significant price risk; and .
(vii) the amount of capacity procured for each
year through the procurements in subsection (k) of
Section 1-75 of the Illinois Power Agency Act and this
Section, and the amount of capacity to be procured
from each procurement during the next year.
(4) Proposed procedures for balancing loads. The

SB2248 - 241 - LRB102 17406 SPS 22899 b
procurement plan shall include, for load requirements
included in the procurement plan, the process for (i)
hourly balancing of supply and demand and (ii) the
criteria for portfolio re-balancing in the event of
significant shifts in load.
(5) Long-Term Renewable Resources Procurement Plan.
The Agency shall prepare a long-term renewable resources
procurement plan for the procurement of renewable energy
credits under Sections 1-56 and 1-75 of the Illinois Power
Agency Act for delivery beginning in the 2017 delivery
year.
(i) The initial long-term renewable resources
procurement plan and all subsequent revisions shall be
subject to review and approval by the Commission. For
the purposes of this Section, "delivery year" has the
same meaning as in Section 1-10 of the Illinois Power
Agency Act. For purposes of this Section, "Agency"
shall mean the Illinois Power Agency.
(ii) The long-term renewable resources planning
process shall be conducted as follows:
(A) Electric utilities shall provide a range
of load forecasts to the Illinois Power Agency
within 45 days of the Agency's request for
forecasts, which request shall specify the length
and conditions for the forecasts including, but
not limited to, the quantity of distributed

SB2248 - 242 - LRB102 17406 SPS 22899 b
generation expected to be interconnected for each
year.
(B) The Agency shall publish for comment the
initial long-term renewable resources procurement
plan no later than 120 days after the effective
date of this amendatory Act of the 99th General
Assembly and shall review, and may revise, the
plan at least every 2 years thereafter. To the
extent practicable, the Agency shall review and
propose any revisions to the long-term renewable
energy resources procurement plan in conjunction
with the Agency's other planning and approval
processes conducted under this Section. The
initial long-term renewable resources procurement
plan shall:
(aa) Identify the procurement programs and
competitive procurement events consistent with
the applicable requirements of the Illinois
Power Agency Act and shall be designed to
achieve the goals set forth in subsection (c)
of Section 1-75 of that Act.
(bb) Include a schedule for procurements
for renewable energy credits from
utility-scale wind projects, utility-scale
solar projects, and brownfield site
photovoltaic projects consistent with

SB2248 - 243 - LRB102 17406 SPS 22899 b
subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois
Power Agency Act.
(cc) Identify the process whereby the
Agency will submit to the Commission for
review and approval the proposed contracts to
implement the programs required by such plan.
Copies of the initial long-term renewable
resources procurement plan and all subsequent
revisions shall be posted and made publicly
available on the Agency's and Commission's
websites, and copies shall also be provided to
each affected electric utility. An affected
utility and other interested parties shall have 45
days following the date of posting to provide
comment to the Agency on the initial long-term
renewable resources procurement plan and all
subsequent revisions. All comments submitted to
the Agency shall be specific, supported by data or
other detailed analyses, and, if objecting to all
or a portion of the procurement plan, accompanied
by specific alternative wording or proposals. All
comments shall be posted on the Agency's and
Commission's websites. During this 45-day comment
period, the Agency shall hold at least one public
hearing within each utility's service area that is

SB2248 - 244 - LRB102 17406 SPS 22899 b
subject to the requirements of this paragraph (5)
for the purpose of receiving public comment.
Within 21 days following the end of the 45-day
review period, the Agency may revise the long-term
renewable resources procurement plan based on the
comments received and shall file the plan with the
Commission for review and approval.
(C) Within 14 days after the filing of the
initial long-term renewable resources procurement
plan or any subsequent revisions, any person
objecting to the plan may file an objection with
the Commission. Within 21 days after the filing of
the plan, the Commission shall determine whether a
hearing is necessary. The Commission shall enter
its order confirming or modifying the initial
long-term renewable resources procurement plan or
any subsequent revisions within 120 days after the
filing of the plan by the Illinois Power Agency.
(D) The Commission shall approve the initial
long-term renewable resources procurement plan and
any subsequent revisions, including expressly the
forecast used in the plan and taking into account
that funding will be limited to the amount of
revenues actually collected by the utilities, if
the Commission determines that the plan will
reasonably and prudently accomplish the

SB2248 - 245 - LRB102 17406 SPS 22899 b
requirements of Section 1-56 and subsection (c) of
Section 1-75 of the Illinois Power Agency Act. The
Commission shall also approve the process for the
submission, review, and approval of the proposed
contracts to procure renewable energy credits or
implement the programs authorized by the
Commission pursuant to a long-term renewable
resources procurement plan approved under this
Section.
(iii) The Agency or third parties contracted by
the Agency shall implement all programs authorized by
the Commission in an approved long-term renewable
resources procurement plan without further review and
approval by the Commission. Third parties shall not
begin implementing any programs or receive any payment
under this Section until the Commission has approved
the contract or contracts under the process authorized
by the Commission in item (D) of subparagraph (ii) of
paragraph (5) of this subsection (b) and the third
party and the Agency or utility, as applicable, have
executed the contract. For those renewable energy
credits subject to procurement through a competitive
bid process under the plan or under the initial
forward procurements for wind and solar resources
described in subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois Power

SB2248 - 246 - LRB102 17406 SPS 22899 b
Agency Act, the Agency shall follow the procurement
process specified in the provisions relating to
electricity procurement in subsections (e) through (i)
of this Section.
(iv) An electric utility shall recover its costs
associated with the procurement of renewable energy
credits under this Section through an automatic
adjustment clause tariff under subsection (k) of
Section 16-108 of this Act. A utility shall not be
required to advance any payment or pay any amounts
under this Section that exceed the actual amount of
revenues collected by the utility under paragraph (6)
of subsection (c) of Section 1-75 of the Illinois
Power Agency Act and subsection (k) of Section 16-108
of this Act, and contracts executed under this Section
shall expressly incorporate this limitation.
(v) For the public interest, safety, and welfare,
the Agency and the Commission may adopt rules to carry
out the provisions of this Section on an emergency
basis immediately following the effective date of this
amendatory Act of the 99th General Assembly.
(vi) On or before July 1 of each year, the
Commission shall hold an informal hearing for the
purpose of receiving comments on the prior year's
procurement process and any recommendations for
change.

SB2248 - 247 - LRB102 17406 SPS 22899 b
(6) Capacity Procurement Plan.
(i) No later than 90 days after notice by a public
utility of election of the Fixed Resource Requirement
Alternative and Illinois Commerce Commission approval
of same, the Illinois Power Agency shall publish for
public comment a draft Capacity Procurement Plan
pursuant to subsection (k) of Section 1-75 of the
Illinois Power Agency Act. The Agency shall conduct at
least one public workshop to elicit input regarding
development of the Plan. The Agency shall provide 60
days for public comment on the draft Plan, and within
30 days after the deadline for comment shall submit
the Plan to the Illinois Commerce Commission.
(ii) After providing appropriate opportunities for
objection and hearing, the Commission shall enter its
order approving or modifying the Plan within 60 days
after the filing of the plan by the Illinois Power
Agency. The Commission shall approve the Plan if it
meets the objectives set forth in subsection (k) of
Section 1-75 of the Illinois Power Agency Act. If the
Plan does not meet those objectives, the Commission
shall modify the Plan or shall provide specific
direction to the Agency to modify and resubmit the
Plan within 30 days.
(c) The procurement process set forth in Section 1-75 of
the Illinois Power Agency Act and subsection (e) of this

SB2248 - 248 - LRB102 17406 SPS 22899 b
Section shall be administered by a procurement administrator
and monitored by a procurement monitor.
(1) The procurement administrator shall:
(i) design the final procurement process in
accordance with Section 1-75 of the Illinois Power
Agency Act and subsection (e) of this Section
following Commission approval of the procurement plan;
(ii) develop benchmarks in accordance with
subsection (e)(3) to be used to evaluate bids; these
benchmarks shall be submitted to the Commission for
review and approval on a confidential basis prior to
the procurement event;
(iii) serve as the interface between the electric
utility and suppliers;
(iv) manage the bidder pre-qualification and
registration process;
(v) obtain the electric utilities' agreement to
the final form of all supply contracts and credit
collateral agreements;
(vi) administer the request for proposals process;
(vii) have the discretion to negotiate to
determine whether bidders are willing to lower the
price of bids that meet the benchmarks approved by the
Commission; any post-bid negotiations with bidders
shall be limited to price only and shall be completed
within 24 hours after opening the sealed bids and

SB2248 - 249 - LRB102 17406 SPS 22899 b
shall be conducted in a fair and unbiased manner; in
conducting the negotiations, there shall be no
disclosure of any information derived from proposals
submitted by competing bidders; if information is
disclosed to any bidder, it shall be provided to all
competing bidders;
(viii) maintain confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(ix) submit a confidential report to the
Commission recommending acceptance or rejection of
bids;
(x) notify the utility of contract counterparties
and contract specifics; and
(xi) administer related contingency procurement
events.
(2) The procurement monitor, who shall be retained by
the Commission, shall:
(i) monitor interactions among the procurement
administrator, suppliers, and utility;
(ii) monitor and report to the Commission on the
progress of the procurement process;
(iii) provide an independent confidential report
to the Commission regarding the results of the
procurement event;
(iv) assess compliance with the procurement plans

SB2248 - 250 - LRB102 17406 SPS 22899 b
approved by the Commission for each utility that on
December 31, 2005 provided electric service to at
least 100,000 customers in Illinois and for each small
multi-jurisdictional utility that on December 31, 2005
served less than 100,000 customers in Illinois;
(v) preserve the confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(vi) provide expert advice to the Commission and
consult with the procurement administrator regarding
issues related to procurement process design, rules,
protocols, and policy-related matters; and
(vii) consult with the procurement administrator
regarding the development and use of benchmark
criteria, standard form contracts, credit policies,
and bid documents.
(d) Except as provided in subsection (j), the planning
process shall be conducted as follows:
(1) Beginning in 2008, each Illinois utility procuring
power pursuant to this Section shall annually provide a
range of load forecasts to the Illinois Power Agency by
July 15 of each year, or such other date as may be required
by the Commission or Agency. The load forecasts shall
cover the 5-year procurement planning period for the next
procurement plan and shall include hourly data
representing a high-load, low-load, and expected-load

SB2248 - 251 - LRB102 17406 SPS 22899 b
scenario for the load of those retail customers included
in the plan's electric supply service requirements. The
utility shall provide supporting data and assumptions for
each of the scenarios.
(2) Beginning in 2008, the Illinois Power Agency shall
prepare a procurement plan by August 15th of each year, or
such other date as may be required by the Commission. The
procurement plan shall identify the portfolio of
demand-response and power and energy products to be
procured. Cost-effective demand-response measures shall be
procured as set forth in item (iii) of subsection (b) of
this Section. Copies of the procurement plan shall be
posted and made publicly available on the Agency's and
Commission's websites, and copies shall also be provided
to each affected electric utility. An affected utility
shall have 30 days following the date of posting to
provide comment to the Agency on the procurement plan.
Other interested entities also may comment on the
procurement plan. All comments submitted to the Agency
shall be specific, supported by data or other detailed
analyses, and, if objecting to all or a portion of the
procurement plan, accompanied by specific alternative
wording or proposals. All comments shall be posted on the
Agency's and Commission's websites. During this 30-day
comment period, the Agency shall hold at least one public
hearing within each utility's service area for the purpose

SB2248 - 252 - LRB102 17406 SPS 22899 b
of receiving public comment on the procurement plan.
Within 14 days following the end of the 30-day review
period, the Agency shall revise the procurement plan as
necessary based on the comments received and file the
procurement plan with the Commission and post the
procurement plan on the websites.
(3) Within 5 days after the filing of the procurement
plan, any person objecting to the procurement plan shall
file an objection with the Commission. Within 10 days
after the filing, the Commission shall determine whether a
hearing is necessary. The Commission shall enter its order
confirming or modifying the procurement plan within 90
days after the filing of the procurement plan by the
Illinois Power Agency.
(4) The Commission shall approve the procurement plan,
including expressly the forecast used in the procurement
plan, if the Commission determines that it will ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability.
(e) The procurement process shall include each of the
following components:
(1) Solicitation, pre-qualification, and registration
of bidders. The procurement administrator shall
disseminate information to potential bidders to promote a

SB2248 - 253 - LRB102 17406 SPS 22899 b
procurement event, notify potential bidders that the
procurement administrator may enter into a post-bid price
negotiation with bidders that meet the applicable
benchmarks, provide supply requirements, and otherwise
explain the competitive procurement process. In addition
to such other publication as the procurement administrator
determines is appropriate, this information shall be
posted on the Illinois Power Agency's and the Commission's
websites. The procurement administrator shall also
administer the prequalification process, including
evaluation of credit worthiness, compliance with
procurement rules, and agreement to the standard form
contract developed pursuant to paragraph (2) of this
subsection (e). The procurement administrator shall then
identify and register bidders to participate in the
procurement event.
(2) Standard contract forms and credit terms and
instruments. The procurement administrator, in
consultation with the utilities, the Commission, and other
interested parties and subject to Commission oversight,
shall develop and provide standard contract forms for the
supplier contracts that meet generally accepted industry
practices. Standard credit terms and instruments that meet
generally accepted industry practices shall be similarly
developed. The procurement administrator shall make
available to the Commission all written comments it

SB2248 - 254 - LRB102 17406 SPS 22899 b
receives on the contract forms, credit terms, or
instruments. If the procurement administrator cannot reach
agreement with the applicable electric utility as to the
contract terms and conditions, the procurement
administrator must notify the Commission of any disputed
terms and the Commission shall resolve the dispute. The
terms of the contracts shall not be subject to negotiation
by winning bidders, and the bidders must agree to the
terms of the contract in advance so that winning bids are
selected solely on the basis of price.
(3) Establishment of a market-based price benchmark.
As part of the development of the procurement process, the
procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor, shall establish benchmarks for evaluating the
final prices in the contracts for each of the products
that will be procured through the procurement process. The
benchmarks shall be based on price data for similar
products for the same delivery period and same delivery
hub, or other delivery hubs after adjusting for that
difference. The price benchmarks may also be adjusted to
take into account differences between the information
reflected in the underlying data sources and the specific
products and procurement process being used to procure
power for the Illinois utilities. The benchmarks shall be
confidential but shall be provided to, and will be subject

SB2248 - 255 - LRB102 17406 SPS 22899 b
to Commission review and approval, prior to a procurement
event.
(4) Request for proposals competitive procurement
process. The procurement administrator shall design and
issue a request for proposals to supply electricity in
accordance with each utility's procurement plan, as
approved by the Commission. The request for proposals
shall set forth a procedure for sealed, binding commitment
bidding with pay-as-bid settlement, and provision for
selection of bids on the basis of price.
(5) A plan for implementing contingencies in the event
of supplier default or failure of the procurement process
to fully meet the expected load requirement due to
insufficient supplier participation, Commission rejection
of results, or any other cause.
(i) Event of supplier default: In the event of
supplier default, the utility shall review the
contract of the defaulting supplier to determine if
the amount of supply is 200 megawatts or greater, and
if there are more than 60 days remaining of the
contract term. If both of these conditions are met,
and the default results in termination of the
contract, the utility shall immediately notify the
Illinois Power Agency that a request for proposals
must be issued to procure replacement power, and the
procurement administrator shall run an additional

SB2248 - 256 - LRB102 17406 SPS 22899 b
procurement event. If the contracted supply of the
defaulting supplier is less than 200 megawatts or
there are less than 60 days remaining of the contract
term, the utility shall procure power and energy from
the applicable regional transmission organization
market, including ancillary services, capacity, and
day-ahead or real time energy, or both, for the
duration of the contract term to replace the
contracted supply; provided, however, that if a needed
product is not available through the regional
transmission organization market it shall be purchased
from the wholesale market.
(ii) Failure of the procurement process to fully
meet the expected load requirement: If the procurement
process fails to fully meet the expected load
requirement due to insufficient supplier participation
or due to a Commission rejection of the procurement
results, the procurement administrator, the
procurement monitor, and the Commission staff shall
meet within 10 days to analyze potential causes of low
supplier interest or causes for the Commission
decision. If changes are identified that would likely
result in increased supplier participation, or that
would address concerns causing the Commission to
reject the results of the prior procurement event, the
procurement administrator may implement those changes

SB2248 - 257 - LRB102 17406 SPS 22899 b
and rerun the request for proposals process according
to a schedule determined by those parties and
consistent with Section 1-75 of the Illinois Power
Agency Act and this subsection. In any event, a new
request for proposals process shall be implemented by
the procurement administrator within 90 days after the
determination that the procurement process has failed
to fully meet the expected load requirement.
(iii) In all cases where there is insufficient
supply provided under contracts awarded through the
procurement process to fully meet the electric
utility's load requirement, the utility shall meet the
load requirement by procuring power and energy from
the applicable regional transmission organization
market, including ancillary services, capacity, and
day-ahead or real time energy, or both; provided,
however, that if a needed product is not available
through the regional transmission organization market
it shall be purchased from the wholesale market.
(6) The procurement process described in this
subsection is exempt from the requirements of the Illinois
Procurement Code, pursuant to Section 20-10 of that Code.
(f) Within 2 business days after opening the sealed bids,
the procurement administrator shall submit a confidential
report to the Commission. The report shall contain the results
of the bidding for each of the products along with the

SB2248 - 258 - LRB102 17406 SPS 22899 b
procurement administrator's recommendation for the acceptance
and rejection of bids based on the price benchmark criteria
and other factors observed in the process. The procurement
monitor also shall submit a confidential report to the
Commission within 2 business days after opening the sealed
bids. The report shall contain the procurement monitor's
assessment of bidder behavior in the process as well as an
assessment of the procurement administrator's compliance with
the procurement process and rules. The Commission shall review
the confidential reports submitted by the procurement
administrator and procurement monitor, and shall accept or
reject the recommendations of the procurement administrator
within 2 business days after receipt of the reports.
(g) Within 3 business days after the Commission decision
approving the results of a procurement event, the utility
shall enter into binding contractual arrangements with the
winning suppliers using the standard form contracts; except
that the utility shall not be required either directly or
indirectly to execute the contracts if a tariff that is
consistent with subsection (l) of this Section has not been
approved and placed into effect for that utility.
(h) The names of the successful bidders and the load
weighted average of the winning bid prices for each contract
type and for each contract term shall be made available to the
public at the time of Commission approval of a procurement
event. The Commission, the procurement monitor, the

SB2248 - 259 - LRB102 17406 SPS 22899 b
procurement administrator, the Illinois Power Agency, and all
participants in the procurement process shall maintain the
confidentiality of all other supplier and bidding information
in a manner consistent with all applicable laws, rules,
regulations, and tariffs. Confidential information, including
the confidential reports submitted by the procurement
administrator and procurement monitor pursuant to subsection
(f) of this Section, shall not be made publicly available and
shall not be discoverable by any party in any proceeding,
absent a compelling demonstration of need, nor shall those
reports be admissible in any proceeding other than one for law
enforcement purposes.
(i) Within 2 business days after a Commission decision
approving the results of a procurement event or such other
date as may be required by the Commission from time to time,
the utility shall file for informational purposes with the
Commission its actual or estimated retail supply charges, as
applicable, by customer supply group reflecting the costs
associated with the procurement and computed in accordance
with the tariffs filed pursuant to subsection (l) of this
Section and approved by the Commission.
(j) Within 60 days following August 28, 2007 (the
effective date of Public Act 95-481), each electric utility
that on December 31, 2005 provided electric service to at
least 100,000 customers in Illinois shall prepare and file
with the Commission an initial procurement plan, which shall

SB2248 - 260 - LRB102 17406 SPS 22899 b
conform in all material respects to the requirements of the
procurement plan set forth in subsection (b); provided,
however, that the Illinois Power Agency Act shall not apply to
the initial procurement plan prepared pursuant to this
subsection. The initial procurement plan shall identify the
portfolio of power and energy products to be procured and
delivered for the period June 2008 through May 2009, and shall
identify the proposed procurement administrator, who shall
have the same experience and expertise as is required of a
procurement administrator hired pursuant to Section 1-75 of
the Illinois Power Agency Act. Copies of the procurement plan
shall be posted and made publicly available on the
Commission's website. The initial procurement plan may include
contracts for renewable resources that extend beyond May 2009.
(i) Within 14 days following filing of the initial
procurement plan, any person may file a detailed objection
with the Commission contesting the procurement plan
submitted by the electric utility. All objections to the
electric utility's plan shall be specific, supported by
data or other detailed analyses. The electric utility may
file a response to any objections to its procurement plan
within 7 days after the date objections are due to be
filed. Within 7 days after the date the utility's response
is due, the Commission shall determine whether a hearing
is necessary. If it determines that a hearing is
necessary, it shall require the hearing to be completed

SB2248 - 261 - LRB102 17406 SPS 22899 b
and issue an order on the procurement plan within 60 days
after the filing of the procurement plan by the electric
utility.
(ii) The order shall approve or modify the procurement
plan, approve an independent procurement administrator,
and approve or modify the electric utility's tariffs that
are proposed with the initial procurement plan. The
Commission shall approve the procurement plan if the
Commission determines that it will ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability.
(k) (Blank).
(k-5) (Blank).
(l) An electric utility shall recover its costs incurred
under this Section, including, but not limited to, the costs
of procuring power and energy demand-response resources under
this Section. The utility shall file with the initial
procurement plan its proposed tariffs through which its costs
of procuring power that are incurred pursuant to a
Commission-approved procurement plan and those other costs
identified in this subsection (l), will be recovered. The
tariffs shall include a formula rate or charge designed to
pass through both the costs incurred by the utility in
procuring a supply of electric power and energy for the
applicable customer classes with no mark-up or return on the

SB2248 - 262 - LRB102 17406 SPS 22899 b
price paid by the utility for that supply, plus any just and
reasonable costs that the utility incurs in arranging and
providing for the supply of electric power and energy. The
formula rate or charge shall also contain provisions that
ensure that its application does not result in over or under
recovery due to changes in customer usage and demand patterns,
and that provide for the correction, on at least an annual
basis, of any accounting errors that may occur. A utility
shall recover through the tariff all reasonable costs incurred
to implement or comply with any procurement plan that is
developed and put into effect pursuant to Section 1-75 of the
Illinois Power Agency Act and this Section, including any fees
assessed by the Illinois Power Agency, costs associated with
load balancing, and contingency plan costs. The electric
utility shall also recover its full costs of procuring
electric supply for which it contracted before the effective
date of this Section in conjunction with the provision of full
requirements service under fixed-price bundled service tariffs
subsequent to December 31, 2006. All such costs shall be
deemed to have been prudently incurred. The pass-through
tariffs that are filed and approved pursuant to this Section
shall not be subject to review under, or in any way limited by,
Section 16-111(i) of this Act. All of the costs incurred by the
electric utility associated with the purchase of zero emission
credits in accordance with subsection (d-5) of Section 1-75 of
the Illinois Power Agency Act and, beginning June 1, 2017, all

SB2248 - 263 - LRB102 17406 SPS 22899 b
of the costs incurred by the electric utility associated with
the purchase of renewable energy resources in accordance with
Sections 1-56 and 1-75 of the Illinois Power Agency Act, shall
be recovered through the electric utility's tariffed charges
applicable to all of its retail customers, as specified in
subsection (k) of Section 16-108 of this Act, and shall not be
recovered through the electric utility's tariffed charges for
electric power and energy supply to its eligible retail
customers.
(m) The Commission has the authority to adopt rules to
carry out the provisions of this Section. For the public
interest, safety, and welfare, the Commission also has
authority to adopt rules to carry out the provisions of this
Section on an emergency basis immediately following August 28,
2007 (the effective date of Public Act 95-481).
(n) Notwithstanding any other provision of this Act, any
affiliated electric utilities that submit a single procurement
plan covering their combined needs may procure for those
combined needs in conjunction with that plan, and may enter
jointly into power supply contracts, purchases, and other
procurement arrangements, and allocate capacity and energy and
cost responsibility therefor among themselves in proportion to
their requirements.
(o) On or before June 1 of each year, the Commission shall
hold an informal hearing for the purpose of receiving comments
on the prior year's procurement process and any

SB2248 - 264 - LRB102 17406 SPS 22899 b
recommendations for change.
(p) An electric utility subject to this Section may
propose to invest, lease, own, or operate an electric
generation facility as part of its procurement plan, provided
the utility demonstrates that such facility is the least-cost
option to provide electric service to those retail customers
included in the plan's electric supply service requirements.
If the facility is shown to be the least-cost option and is
included in a procurement plan prepared in accordance with
Section 1-75 of the Illinois Power Agency Act and this
Section, then the electric utility shall make a filing
pursuant to Section 8-406 of this Act, and may request of the
Commission any statutory relief required thereunder. If the
Commission grants all of the necessary approvals for the
proposed facility, such supply shall thereafter be considered
as a pre-existing contract under subsection (b) of this
Section. The Commission shall in any order approving a
proposal under this subsection specify how the utility will
recover the prudently incurred costs of investing in, leasing,
owning, or operating such generation facility through just and
reasonable rates charged to those retail customers included in
the plan's electric supply service requirements. Cost recovery
for facilities included in the utility's procurement plan
pursuant to this subsection shall not be subject to review
under or in any way limited by the provisions of Section
16-111(i) of this Act. Nothing in this Section is intended to

SB2248 - 265 - LRB102 17406 SPS 22899 b
prohibit a utility from filing for a fuel adjustment clause as
is otherwise permitted under Section 9-220 of this Act.
(q) If the Illinois Power Agency filed with the
Commission, under Section 16-111.5 of this Act, its proposed
procurement plan for the period commencing June 1, 2017, and
the Commission has not yet entered its final order approving
the plan on or before the effective date of this amendatory Act
of the 99th General Assembly, then the Illinois Power Agency
shall file a notice of withdrawal with the Commission, after
the effective date of this amendatory Act of the 99th General
Assembly, to withdraw the proposed procurement of renewable
energy resources to be approved under the plan, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices using funds previously
collected from electric utilities' retail customers that take
service pursuant to electric utilities' hourly pricing tariff
or tariffs and, for an electric utility that serves less than
100,000 retail customers in the State, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices. Upon receipt of the
notice, the Commission shall enter an order that approves the
withdrawal of the proposed procurement of renewable energy
resources from the plan. The initially proposed procurement of
renewable energy resources shall not be approved or be the
subject of any further hearing, investigation, proceeding, or
order of any kind.

SB2248 - 266 - LRB102 17406 SPS 22899 b
This amendatory Act of the 99th General Assembly preempts
and supersedes any order entered by the Commission that
approved the Illinois Power Agency's procurement plan for the
period commencing June 1, 2017, to the extent it is
inconsistent with the provisions of this amendatory Act of the
99th General Assembly. To the extent any previously entered
order approved the procurement of renewable energy resources,
the portion of that order approving the procurement shall be
void, other than the procurement of renewable energy credits
from distributed renewable energy generation devices using
funds previously collected from electric utilities' retail
customers that take service under electric utilities' hourly
pricing tariff or tariffs and, for an electric utility that
serves less than 100,000 retail customers in the State, other
than the procurement of renewable energy credits for
distributed renewable energy generation devices.
(Source: P.A. 99-906, eff. 6-1-17.)
(220 ILCS 5/16-131 new)
Sec. 16-131. Right to self-generate electricity.
(a) As used in this Section:
"Electric cooperative" has the meaning set forth in
Section 3.4 of the Electric Supplier Act.
"Municipal utility" means a public utility that is owned
and operated by any political subdivision or municipal
corporation of this State or owned by such an entity and

SB2248 - 267 - LRB102 17406 SPS 22899 b
operated by any lessee or any operating agent thereof.
"Public utility" has the definition set forth in Section
3-105 of this Act.
(b) Customers shall have the right to, and the Commission
shall protect the rights of customers to, produce, consume,
and store their own energy without discriminatory
repercussions from a public utility, electric cooperative, or
municipal utility, regardless of whether that energy is
produced via a system that is owned outright, leased, or
financed through a behind-the-meter solar power-purchase
agreement or other means. This includes customers' rights to:
(1) generate, consume, and export renewable energy and
reduce his or her use of electricity obtained from the
grid;
(2) use technology to store energy at his or her
residence;
(3) connect his or her electrical system that
generates renewable energy, stores energy, or any
combination thereof, with the electricity meter on the
customer's premises that is provided by a public utility,
electric cooperative, or municipal utility:
(A) in a timely manner;
(B) in accordance with requirements established by
the electric utility to ensure the safety of utility
workers; and
(C) after providing written notice to the electric

SB2248 - 268 - LRB102 17406 SPS 22899 b
utility providing service in the service territory,
installing a nomenclature plate on the electrical
meter panel and meeting all applicable state and local
safety and electrical code requirements associated
with installing a parallel distributed generation
system; and
(4) receive fair credit for energy exported to the
grid.
(c) A public utility, electric cooperative, or municipal
utility customer who produces, consumes, and stores his or her
own energy shall not face discriminatory rate design, fees,
treatment, or excessive compliance requirements as provided by
paragraph (3) of subsection (n) of Section 16-107.5.
(d) A public utility, electric cooperative, or municipal
utility customer shall have a right to appeal any decision
related to self-generation and storage that violates these
rights to self-generation and non-discrimination pursuant to
the provisions of this Section through a complaint process.
(e) The Illinois Commerce Commission shall adopt all rules
necessary for the administration of this Section.
Section 99. Effective date. This Act takes effect upon
becoming law.
SB2248 - 269 - LRB102 17406 SPS 22899 b
INDEX
Statutes amended in order of appearance