Bill Text: IL SB3598 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Power Agency Act. Provides that in competitive procurements conducted by the Agency for utility-scale energy storage resources from owners of existing or retired fossil-fueled power plants, the Agency, in ranking the bids, shall apply a downward bid price adjustment to any project bid that is located or proposed to be located within a one mile radius of an existing substation that serves or has served as a point of interconnection for a fossil-fueled power plant and that meets one of 3 specific criteria. Provides that if the project meets 2 or more of the criteria, the Agency shall apply the bid price adjustment 2 times. Provides that the Agency shall develop a storage procurement plan that results in the electric utilities contracting for energy storage resources. Provides that, within 90 days after the effective date of the amendatory Act, the Agency shall develop an energy storage procurement plan. Provides that an owner of the energy storage resources must have entered into a project labor agreement for the construction of the energy storage resource and certify that not less than the prevailing wage was or will be paid to employees who are engaged in construction activities. Provides that, if the owner or owners of the energy storage resources own existing or retired fossil-fueled power plants, the owner shall commit to a job training and education program to provide the requisite skills, knowledge, and training required to operate and maintain energy storage resources and create employment opportunities for graduates of the program. Provides that the Agency shall conduct an analysis every 2 years to determine whether the contracted quantity of energy storage in energy storage capacity and energy storage duration is sufficient. Provides that the Agency shall retain an independent consultant to conduct the analysis. Sets forth requirements of the independent consultant and the analysis. Provides that the Agency is authorized to collect costs for conducting the analysis from electric utilities. The electric utilities are authorized to recover the cost of the analysis. Provides that if the Agency determines that the need for energy storage capacity or energy storage duration is greater than the energy storage resources already procured, the Agency shall establish and the Commission shall approve new energy storage resources targets to meet the identified need. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-03-15 - Rule 3-9(a) / Re-referred to Assignments [SB3598 Detail]

Download: Illinois-2023-SB3598-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3598 Introduced 2/9/2024, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
See Index
Amends the Illinois Power Agency Act. Provides that in competitive procurements conducted by the Agency for utility-scale energy storage resources from owners of existing or retired fossil-fueled power plants, the Agency, in ranking the bids, shall apply a downward bid price adjustment to any project bid that is located or proposed to be located within a one mile radius of an existing substation that serves or has served as a point of interconnection for a fossil-fueled power plant and that meets one of 3 specific criterion. Provides that if the project meets 2 or more of the criterion, the Agency shall apply the bid price adjustment 2 times. Provides that the Agency shall develop a storage procurement plan that results in the electric utilities contracting for energy storage resources. Provides that, within 90 days after the effective date of the amendatory Act, the Agency shall develop an energy storage procurement plan. Provides that an owner of the energy storage resources must have entered into a project labor agreement for the construction of the energy storage resource and certify that not less than the prevailing wage was or will be paid to employees who are engaged in construction activities. Provides that, if the owner or owners of the energy storage resources own existing or retired fossil-fueled power plants, the owner shall commit to a job training and education program to provide the requisite skills, knowledge, and training required to operate and maintain energy storage resources and create employment opportunities for graduates of the program. Provides that the Agency shall conduct an analysis every 2 years to determine whether the contracted quantity of energy storage in energy storage capacity and energy storage duration is sufficient. Provides that the Agency shall retain an independent consultant to conduct the analysis. Sets forth requirements of the independent consultant and the analysis. Provides that the Agency is authorized to collect costs for conducting the analysis from electric utilities. The electric utilities are authorized to recover the cost of the analysis. Provides that if the Agency determines that the need for energy storage capacity or energy storage duration is greater than the energy storage resources already procured, the Agency shall establish and the Commission shall approve new energy storage resources targets to meet the identified need. Effective immediately.
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A BILL FOR
SB3598 LRB103 38719 CES 68856 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Power Agency Act is amended by
changing Section 1-75 and by adding Section 1-93 as follows:
(20 ILCS 3855/1-75)
Sec. 1-75. Planning and Procurement Bureau. The Planning
and Procurement Bureau has the following duties and
responsibilities:
(a) The Planning and Procurement Bureau shall each year,
beginning in 2008, develop procurement plans and conduct
competitive procurement processes in accordance with the
requirements of Section 16-111.5 of the Public Utilities Act
for the eligible retail customers of electric utilities that
on December 31, 2005 provided electric service to at least
100,000 customers in Illinois. Beginning with the delivery
year commencing on June 1, 2017, the Planning and Procurement
Bureau shall develop plans and processes for the procurement
of zero emission credits from zero emission facilities in
accordance with the requirements of subsection (d-5) of this
Section. Beginning on the effective date of this amendatory
Act of the 102nd General Assembly, the Planning and
Procurement Bureau shall develop plans and processes for the

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procurement of carbon mitigation credits from carbon-free
energy resources in accordance with the requirements of
subsection (d-10) of this Section. The Planning and
Procurement Bureau shall also develop procurement plans and
conduct competitive procurement processes in accordance with
the requirements of Section 16-111.5 of the Public Utilities
Act for the eligible retail customers of small
multi-jurisdictional electric utilities that (i) on December
31, 2005 served less than 100,000 customers in Illinois and
(ii) request a procurement plan for their Illinois
jurisdictional load. This Section shall not apply to a small
multi-jurisdictional utility until such time as a small
multi-jurisdictional utility requests the Agency to prepare a
procurement plan for their Illinois jurisdictional load. For
the purposes of this Section, the term "eligible retail
customers" has the same definition as found in Section
16-111.5(a) of the Public Utilities Act.
Beginning with the plan or plans to be implemented in the
2017 delivery year, the Agency shall no longer include the
procurement of renewable energy resources in the annual
procurement plans required by this subsection (a), except as
provided in subsection (q) of Section 16-111.5 of the Public
Utilities Act, and shall instead develop a long-term renewable
resources procurement plan in accordance with subsection (c)
of this Section and Section 16-111.5 of the Public Utilities
Act.

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In accordance with subsection (c-5) of this Section, the
Planning and Procurement Bureau shall oversee the procurement
by electric utilities that served more than 300,000 retail
customers in this State as of January 1, 2019 of renewable
energy credits from new utility-scale solar projects to be
installed, along with energy storage facilities, at or
adjacent to the sites of electric generating facilities that,
as of January 1, 2016, burned coal as their primary fuel
source.
(1) The Agency shall each year, beginning in 2008, as
needed, issue a request for qualifications for experts or
expert consulting firms to develop the procurement plans
in accordance with Section 16-111.5 of the Public
Utilities Act. In order to qualify an expert or expert
consulting firm must have:
(A) direct previous experience assembling
large-scale power supply plans or portfolios for
end-use customers;
(B) an advanced degree in economics, mathematics,
engineering, risk management, or a related area of
study;
(C) 10 years of experience in the electricity
sector, including managing supply risk;
(D) expertise in wholesale electricity market
rules, including those established by the Federal
Energy Regulatory Commission and regional transmission

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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
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

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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:
(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

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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
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

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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
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

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than 120 days after the effective date of this amendatory
Act of the 103rd General Assembly, the Agency shall
release for comment a revision to the long-term renewable
resources procurement plan, updating elements of the most
recently approved plan as needed to comply with this
amendatory Act of the 103rd General Assembly, and any
long-term renewable resources procurement plan update
published by the Agency but not yet approved by the
Illinois Commerce Commission shall be withdrawn. The
long-term renewable resources procurement plans shall be
subject to review and approval by the Commission under
Section 16-111.5 of the Public Utilities Act.
(B) Subject to subparagraph (F) of this paragraph (1),
the long-term renewable resources procurement plan shall
attempt to meet the goals for procurement of renewable
energy credits at levels of at least the following overall
percentages: 13% by the 2017 delivery year; increasing by
at least 1.5% each delivery year thereafter to at least
25% by the 2025 delivery year; increasing by at least 3%
each delivery year thereafter to at least 40% by the 2030
delivery year, and continuing at no less than 40% for each
delivery year thereafter. The Agency shall attempt to
procure 50% by delivery year 2040. The Agency shall
determine the annual increase between delivery year 2030
and delivery year 2040, if any, taking into account energy
demand, other energy resources, and other public policy

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

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prioritization outlined in this subparagraph (B),
cost-effective renewable energy resources equal to at
least 14.5% of each utility's load for eligible retail
customers and 14.5% of the applicable portion of each
utility's load for retail customers who are not eligible
retail customers, which applicable portion shall equal 75%
of the utility's load for retail customers who are not
eligible retail customers on February 28, 2017.
For the delivery year beginning June 1, 2019, and for
each year thereafter, the procurement plans shall attempt
to include, subject to the prioritization outlined in this
subparagraph (B), cost-effective renewable energy
resources equal to a minimum percentage of each utility's
load for all retail customers as follows: 16% by June 1,
2019; increasing by 1.5% each year thereafter to 25% by
June 1, 2025; and 25% by June 1, 2026; increasing by at
least 3% each delivery year thereafter to at least 40% by
the 2030 delivery year, and continuing at no less than 40%
for each delivery year thereafter. The Agency shall
attempt to procure 50% by delivery year 2040. The Agency
shall determine the annual increase between delivery year
2030 and delivery year 2040, if any, taking into account
energy demand, other energy resources, and other public
policy goals.
For each delivery year, the Agency shall first
recognize each utility's obligations for that delivery

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year under existing contracts. Any renewable energy
credits under existing contracts, including renewable
energy credits as part of renewable energy resources,
shall be used to meet the goals set forth in this
subsection (c) for the delivery year.
(C) The long-term renewable resources procurement plan
described in subparagraph (A) of this paragraph (1) shall
include the procurement of renewable energy credits from
new projects pursuant to the following terms:
(i) At least 10,000,000 renewable energy credits
delivered annually by the end of the 2021 delivery
year, and increasing ratably to reach 45,000,000
renewable energy credits delivered annually from new
wind and solar projects by the end of delivery year
2030 such that the goals in subparagraph (B) of this
paragraph (1) are met entirely by procurements of
renewable energy credits from new wind and
photovoltaic projects. Of that amount, to the extent
possible, the Agency shall procure 45% from wind and
hydropower projects and 55% from photovoltaic
projects. Of the amount to be procured from
photovoltaic projects, the Agency shall procure: at
least 50% from solar photovoltaic projects using the
program outlined in subparagraph (K) of this paragraph
(1) from distributed renewable energy generation
devices or community renewable generation projects; at

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least 47% from utility-scale solar projects; at least
3% from brownfield site photovoltaic projects that are
not community renewable generation projects.
In developing the long-term renewable resources
procurement plan, the Agency shall consider other
approaches, in addition to competitive procurements,
that can be used to procure renewable energy credits
from brownfield site photovoltaic projects and thereby
help return blighted or contaminated land to
productive use while enhancing public health and the
well-being of Illinois residents, including those in
environmental justice communities, as defined using
existing methodologies and findings used by the Agency
and its Administrator in its Illinois Solar for All
Program. The Agency shall also consider other
approaches, in addition to competitive procurements,
to procure renewable energy credits from new and
existing hydropower facilities to support the
development and maintenance of these facilities. The
Agency shall explore options to convert existing dams
but shall not consider approaches to develop new dams
where they do not already exist.
(ii) In any given delivery year, if forecasted
expenses are less than the maximum budget available
under subparagraph (E) of this paragraph (1), the
Agency shall continue to procure new renewable energy

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credits until that budget is exhausted in the manner
outlined in item (i) of this subparagraph (C).
(iii) For purposes of this Section:
"New wind projects" means wind renewable energy
facilities that are energized after June 1, 2017 for
the delivery year commencing June 1, 2017.
"New photovoltaic projects" means photovoltaic
renewable energy facilities that are energized after
June 1, 2017. Photovoltaic projects developed under
Section 1-56 of this Act shall not apply towards the
new photovoltaic project requirements in this
subparagraph (C).
For purposes of calculating whether the Agency has
procured enough new wind and solar renewable energy
credits required by this subparagraph (C), renewable
energy facilities that have a multi-year renewable
energy credit delivery contract with the utility
through at least delivery year 2030 shall be
considered new, however no renewable energy credits
from contracts entered into before June 1, 2021 shall
be used to calculate whether the Agency has procured
the correct proportion of new wind and new solar
contracts described in this subparagraph (C) for
delivery year 2021 and thereafter.
(D) Renewable energy credits shall be cost effective.
For purposes of this subsection (c), "cost effective"

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means that the costs of procuring renewable energy
resources do not cause the limit stated in subparagraph
(E) of this paragraph (1) to be exceeded and, for
renewable energy credits procured through a competitive
procurement event, do not exceed benchmarks based on
market prices for like products in the region. For
purposes of this subsection (c), "like products" means
contracts for renewable energy credits from the same or
substantially similar technology, same or substantially
similar vintage (new or existing), the same or
substantially similar quantity, and the same or
substantially similar contract length and structure.
Benchmarks shall reflect development, financing, or
related costs resulting from requirements imposed through
other provisions of State law, including, but not limited
to, requirements in subparagraphs (P) and (Q) of this
paragraph (1) and the Renewable Energy Facilities
Agricultural Impact Mitigation Act. Confidential
benchmarks shall be developed by the procurement
administrator, in consultation with the Commission staff,
Agency staff, and the procurement monitor and shall be
subject to Commission review and approval. If price
benchmarks for like products in the region are not
available, the procurement administrator shall establish
price benchmarks based on publicly available data on
regional technology costs and expected current and future

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regional energy prices. The benchmarks in this Section
shall not be used to curtail or otherwise reduce
contractual obligations entered into by or through the
Agency prior to June 1, 2017 (the effective date of Public
Act 99-906).
(E) For purposes of this subsection (c), the required
procurement of cost-effective renewable energy resources
for a particular year commencing prior to June 1, 2017
shall be measured as a percentage of the actual amount of
electricity (megawatt-hours) supplied by the electric
utility to eligible retail customers in the delivery year
ending immediately prior to the procurement, and, for
delivery years commencing on and after June 1, 2017, the
required procurement of cost-effective renewable energy
resources for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) delivered by the electric utility in the
delivery year ending immediately prior to the procurement,
to all retail customers in its service territory. For
purposes of this subsection (c), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For
purposes of this subsection (c), the total amount paid for
electric service includes without limitation amounts paid
for supply, transmission, capacity, distribution,
surcharges, and add-on taxes.

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Notwithstanding the requirements of this subsection
(c), the total of renewable energy resources procured
under the procurement plan for any single year shall be
subject to the limitations of this subparagraph (E). Such
procurement shall be reduced for all retail customers
based on the amount necessary to limit the annual
estimated average net increase due to the costs of these
resources included in the amounts paid by eligible retail
customers in connection with electric service to no more
than 4.25% of the amount paid per kilowatthour by those
customers during the year ending May 31, 2009. To arrive
at a maximum dollar amount of renewable energy resources
to be procured for the particular delivery year, the
resulting per kilowatthour amount shall be applied to the
actual amount of kilowatthours of electricity delivered,
or applicable portion of such amount as specified in
paragraph (1) of this subsection (c), as applicable, by
the electric utility in the delivery year immediately
prior to the procurement to all retail customers in its
service territory. The calculations required by this
subparagraph (E) shall be made only once for each delivery
year at the time that the renewable energy resources are
procured. Once the determination as to the amount of
renewable energy resources to procure is made based on the
calculations set forth in this subparagraph (E) and the
contracts procuring those amounts are executed, no

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subsequent rate impact determinations shall be made and no
adjustments to those contract amounts shall be allowed.
All costs incurred under such contracts shall be fully
recoverable by the electric utility as provided in this
Section.
(F) If the limitation on the amount of renewable
energy resources procured in subparagraph (E) of this
paragraph (1) prevents the Agency from meeting all of the
goals in this subsection (c), the Agency's long-term plan
shall prioritize compliance with the requirements of this
subsection (c) regarding renewable energy credits in the
following order:
(i) renewable energy credits under existing
contractual obligations as of June 1, 2021;
(i-5) funding for the Illinois Solar for All
Program, as described in subparagraph (O) of this
paragraph (1);
(ii) renewable energy credits necessary to comply
with the new wind and new photovoltaic procurement
requirements described in items (i) through (iii) of
subparagraph (C) of this paragraph (1); and
(iii) renewable energy credits necessary to meet
the remaining requirements of this subsection (c).
(G) The following provisions shall apply to the
Agency's procurement of renewable energy credits under
this subsection (c):

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(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
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

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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
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

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procurement plan revision described in Section
16-111.5 of the Public Utilities Act, the Agency shall
conduct at least one subsequent forward procurement
for renewable energy credits from new utility-scale
wind projects, new utility-scale solar projects, and
new brownfield site photovoltaic projects within 240
days after the effective date of this amendatory Act
of the 102nd General Assembly in quantities necessary
to meet the requirements of subparagraph (C) of this
paragraph (1) through the delivery year beginning June
1, 2021.
(iv) Notwithstanding whether the Commission has
approved the periodic long-term renewable resources
procurement plan revision described in Section
16-111.5 of the Public Utilities Act, the Agency shall
open capacity for each category in the Adjustable
Block program within 90 days after the effective date
of this amendatory Act of the 102nd General Assembly
manner:
(1) The Agency shall open the first block of
annual capacity for the category described in item
(i) of subparagraph (K) of this paragraph (1). The
first block of annual capacity for item (i) shall
be for at least 75 megawatts of total nameplate
capacity. The price of the renewable energy credit
for this block of capacity shall be 4% less than

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the price of the last open block in this category.
Projects on a waitlist shall be awarded contracts
first in the order in which they appear on the
waitlist. Notwithstanding anything to the
contrary, for those renewable energy credits that
qualify and are procured under this subitem (1) of
this item (iv), the renewable energy credit
delivery contract value shall be paid in full,
based on the estimated generation during the first
15 years of operation, by the contracting
utilities at the time that the facility producing
the renewable energy credits is interconnected at
the distribution system level of the utility and
verified as energized and in compliance by the
Program Administrator. The electric utility shall
receive and retire all renewable energy credits
generated by the project for the first 15 years of
operation. Renewable energy credits generated by
the project thereafter shall not be transferred
under the renewable energy credit delivery
contract with the counterparty electric utility.
(2) The Agency shall open the first block of
annual capacity for the category described in item
(ii) of subparagraph (K) of this paragraph (1).
The first block of annual capacity for item (ii)
shall be for at least 75 megawatts of total

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nameplate capacity.
(A) The price of the renewable energy
credit for any project on a waitlist for this
category before the opening of this block
shall be 4% less than the price of the last
open block in this category. Projects on the
waitlist shall be awarded contracts first in
the order in which they appear on the
waitlist. Any projects that are less than or
equal to 25 kilowatts in size on the waitlist
for this capacity shall be moved to the
waitlist for paragraph (1) of this item (iv).
Notwithstanding anything to the contrary,
projects that were on the waitlist prior to
opening of this block shall not be required to
be in compliance with the requirements of
subparagraph (Q) of this paragraph (1) of this
subsection (c). Notwithstanding anything to
the contrary, for those renewable energy
credits procured from projects that were on
the waitlist for this category before the
opening of this block 20% of the renewable
energy credit delivery contract value, based
on the estimated generation during the first
15 years of operation, shall be paid by the
contracting utilities at the time that the

SB3598 - 23 - LRB103 38719 CES 68856 b
facility producing the renewable energy
credits is interconnected at the distribution
system level of the utility and verified as
energized by the Program Administrator. The
remaining portion shall be paid ratably over
the subsequent 4-year period. The electric
utility shall receive and retire all renewable
energy credits generated by the project during
the first 15 years of operation. Renewable
energy credits generated by the project
thereafter shall not be transferred under the
renewable energy credit delivery contract with
the counterparty electric utility.
(B) The price of renewable energy credits
for any project not on the waitlist for this
category before the opening of the block shall
be determined and published by the Agency.
Projects not on a waitlist as of the opening
of this block shall be subject to the
requirements of subparagraph (Q) of this
paragraph (1), as applicable. Projects not on
a waitlist as of the opening of this block
shall be subject to the contract provisions
outlined in item (iii) of subparagraph (L) of
this paragraph (1). The Agency shall strive to
publish updated prices and an updated

SB3598 - 24 - LRB103 38719 CES 68856 b
renewable energy credit delivery contract as
quickly as possible.
(3) For opening the first 2 blocks of annual
capacity for projects participating in item (iii)
of subparagraph (K) of paragraph (1) of subsection
(c), projects shall be selected exclusively from
those projects on the ordinal waitlists of
community renewable generation projects
established by the Agency based on the status of
those ordinal waitlists as of December 31, 2020,
and only those projects previously determined to
be eligible for the Agency's April 2019 community
solar project selection process.
The first 2 blocks of annual capacity for item
(iii) shall be for 250 megawatts of total
nameplate capacity, with both blocks opening
simultaneously under the schedule outlined in the
paragraphs below. Projects shall be selected as
follows:
(A) The geographic balance of selected
projects shall follow the Group classification
found in the Agency's Revised Long-Term
Renewable Resources Procurement Plan, with 70%
of capacity allocated to projects on the Group
B waitlist and 30% of capacity allocated to
projects on the Group A waitlist.

SB3598 - 25 - LRB103 38719 CES 68856 b
(B) Contract awards for waitlisted
projects shall be allocated proportionate to
the total nameplate capacity amount across
both ordinal waitlists associated with that
applicant firm or its affiliates, subject to
the following conditions.
(i) Each applicant firm having a
waitlisted project eligible for selection
shall receive no less than 500 kilowatts
in awarded capacity across all groups, and
no approved vendor may receive more than
20% of each Group's waitlist allocation.
(ii) Each applicant firm, upon
receiving an award of program capacity
proportionate to its waitlisted capacity,
may then determine which waitlisted
projects it chooses to be selected for a
contract award up to that capacity amount.
(iii) Assuming all other program
requirements are met, applicant firms may
adjust the nameplate capacity of applicant
projects without losing waitlist
eligibility, so long as no project is
greater than 2,000 kilowatts in size.
(iv) Assuming all other program
requirements are met, applicant firms may

SB3598 - 26 - LRB103 38719 CES 68856 b
adjust the expected production associated
with applicant projects, subject to
verification by the Program Administrator.
(C) After a review of affiliate
information and the current ordinal waitlists,
the Agency shall announce the nameplate
capacity award amounts associated with
applicant firms no later than 90 days after
the effective date of this amendatory Act of
the 102nd General Assembly.
(D) Applicant firms shall submit their
portfolio of projects used to satisfy those
contract awards no less than 90 days after the
Agency's announcement. The total nameplate
capacity of all projects used to satisfy that
portfolio shall be no greater than the
Agency's nameplate capacity award amount
associated with that applicant firm. An
applicant firm may decline, in whole or in
part, its nameplate capacity award without
penalty, with such unmet capacity rolled over
to the next block opening for project
selection under item (iii) of subparagraph (K)
of this subsection (c). Any projects not
included in an applicant firm's portfolio may
reapply without prejudice upon the next block

SB3598 - 27 - LRB103 38719 CES 68856 b
reopening for project selection under item
(iii) of subparagraph (K) of this subsection
(c).
(E) The renewable energy credit delivery
contract shall be subject to the contract and
payment terms outlined in item (iv) of
subparagraph (L) of this subsection (c).
Contract instruments used for this
subparagraph shall contain the following
terms:
(i) Renewable energy credit prices
shall be fixed, without further adjustment
under any other provision of this Act or
for any other reason, at 10% lower than
prices applicable to the last open block
for this category, inclusive of any adders
available for achieving a minimum of 50%
of subscribers to the project's nameplate
capacity being residential or small
commercial customers with subscriptions of
below 25 kilowatts in size;
(ii) A requirement that a minimum of
50% of subscribers to the project's
nameplate capacity be residential or small
commercial customers with subscriptions of
below 25 kilowatts in size;

SB3598 - 28 - LRB103 38719 CES 68856 b
(iii) Permission for the ability of a
contract holder to substitute projects
with other waitlisted projects without
penalty should a project receive a
non-binding estimate of costs to construct
the interconnection facilities and any
required distribution upgrades associated
with that project of greater than 30 cents
per watt AC of that project's nameplate
capacity. In developing the applicable
contract instrument, the Agency may
consider whether other circumstances
outside of the control of the applicant
firm should also warrant project
substitution rights.
The Agency shall publish a finalized
updated renewable energy credit delivery
contract developed consistent with these terms
and conditions no less than 30 days before
applicant firms must submit their portfolio of
projects pursuant to item (D).
(F) To be eligible for an award, the
applicant firm shall certify that not less
than prevailing wage, as determined pursuant
to the Illinois Prevailing Wage Act, was or
will be paid to employees who are engaged in

SB3598 - 29 - LRB103 38719 CES 68856 b
construction activities associated with a
selected project.
(4) The Agency shall open the first block of
annual capacity for the category described in item
(iv) of subparagraph (K) of this paragraph (1).
The first block of annual capacity for item (iv)
shall be for at least 50 megawatts of total
nameplate capacity. Renewable energy credit prices
shall be fixed, without further adjustment under
any other provision of this Act or for any other
reason, at the price in the last open block in the
category described in item (ii) of subparagraph
(K) of this paragraph (1). Pricing for future
blocks of annual capacity for this category may be
adjusted in the Agency's second revision to its
Long-Term Renewable Resources Procurement Plan.
Projects in this category shall be subject to the
contract terms outlined in item (iv) of
subparagraph (L) of this paragraph (1).
(5) The Agency shall open the equivalent of 2
years of annual capacity for the category
described in item (v) of subparagraph (K) of this
paragraph (1). The first block of annual capacity
for item (v) shall be for at least 10 megawatts of
total nameplate capacity. Notwithstanding the
provisions of item (v) of subparagraph (K) of this

SB3598 - 30 - LRB103 38719 CES 68856 b
paragraph (1), for the purpose of this initial
block, the agency shall accept new project
applications intended to increase the diversity of
areas hosting community solar projects, the
business models of projects, and the size of
projects, as described by the Agency in its
long-term renewable resources procurement plan
that is approved as of the effective date of this
amendatory Act of the 102nd General Assembly.
Projects in this category shall be subject to the
contract terms outlined in item (iii) of
subsection (L) of this paragraph (1).
(6) The Agency shall open the first blocks of
annual capacity for the category described in item
(vi) of subparagraph (K) of this paragraph (1),
with allocations of capacity within the block
generally matching the historical share of block
capacity allocated between the category described
in items (i) and (ii) of subparagraph (K) of this
paragraph (1). The first two blocks of annual
capacity for item (vi) shall be for at least 75
megawatts of total nameplate capacity. The price
of renewable energy credits for the blocks of
capacity shall be 4% less than the price of the
last open blocks in the categories described in
items (i) and (ii) of subparagraph (K) of this

SB3598 - 31 - LRB103 38719 CES 68856 b
paragraph (1). Pricing for future blocks of annual
capacity for this category may be adjusted in the
Agency's second revision to its Long-Term
Renewable Resources Procurement Plan. Projects in
this category shall be subject to the applicable
contract terms outlined in items (ii) and (iii) of
subparagraph (L) of this paragraph (1).
(v) Upon the effective date of this amendatory Act
of the 102nd General Assembly, for all competitive
procurements and any procurements of renewable energy
credit from new utility-scale wind and new
utility-scale photovoltaic projects, the Agency shall
procure indexed renewable energy credits and direct
respondents to offer a strike price.
(1) The purchase price of the indexed
renewable energy credit payment shall be
calculated for each settlement period. That
payment, for any settlement period, shall be equal
to the difference resulting from subtracting the
strike price from the index price for that
settlement period. If this difference results in a
negative number, the indexed REC counterparty
shall owe the seller the absolute value multiplied
by the quantity of energy produced in the relevant
settlement period. If this difference results in a
positive number, the seller shall owe the indexed

SB3598 - 32 - LRB103 38719 CES 68856 b
REC counterparty this amount multiplied by the
quantity of energy produced in the relevant
settlement period.
(2) Parties shall cash settle every month,
summing up all settlements (both positive and
negative, if applicable) for the prior month.
(3) To ensure funding in the annual budget
established under subparagraph (E) for indexed
renewable energy credit procurements for each year
of the term of such contracts, which must have a
minimum tenure of 20 calendar years, the
procurement administrator, Agency, Commission
staff, and procurement monitor shall quantify the
annual cost of the contract by utilizing an
industry-standard, third-party forward price curve
for energy at the appropriate hub or load zone,
including the estimated magnitude and timing of
the price effects related to federal carbon
controls. Each forward price curve shall contain a
specific value of the forecasted market price of
electricity for each annual delivery year of the
contract. For procurement planning purposes, the
impact on the annual budget for the cost of
indexed renewable energy credits for each delivery
year shall be determined as the expected annual
contract expenditure for that year, equaling the

SB3598 - 33 - LRB103 38719 CES 68856 b
difference between (i) the sum across all relevant
contracts of the applicable strike price
multiplied by contract quantity and (ii) the sum
across all relevant contracts of the forward price
curve for the applicable load zone for that year
multiplied by contract quantity. The contracting
utility shall not assume an obligation in excess
of the estimated annual cost of the contracts for
indexed renewable energy credits. Forward curves
shall be revised on an annual basis as updated
forward price curves are released and filed with
the Commission in the proceeding approving the
Agency's most recent long-term renewable resources
procurement plan. If the expected contract spend
is higher or lower than the total quantity of
contracts multiplied by the forward price curve
value for that year, the forward price curve shall
be updated by the procurement administrator, in
consultation with the Agency, Commission staff,
and procurement monitors, using then-currently
available price forecast data and additional
budget dollars shall be obligated or reobligated
as appropriate.
(4) To ensure that indexed renewable energy
credit prices remain predictable and affordable,
the Agency may consider the institution of a price

SB3598 - 34 - LRB103 38719 CES 68856 b
collar on REC prices paid under indexed renewable
energy credit procurements establishing floor and
ceiling REC prices applicable to indexed REC
contract prices. Any price collars applicable to
indexed REC procurements shall be proposed by the
Agency through its long-term renewable resources
procurement plan.
(vi) All procurements under this subparagraph (G),
including the procurement of renewable energy credits
from hydropower facilities, shall comply with the
geographic requirements in subparagraph (I) of this
paragraph (1) and shall follow the procurement
processes and procedures described in this Section and
Section 16-111.5 of the Public Utilities Act to the
extent practicable, and these processes and procedures
may be expedited to accommodate the schedule
established by this subparagraph (G).
(vii) On and after the effective date of this
amendatory Act of the 103rd General Assembly, for all
procurements of renewable energy credits from
hydropower facilities, the Agency shall establish
contract terms designed to optimize existing
hydropower facilities through modernization or
retooling and establish new hydropower facilities at
existing dams. Procurements made under this item (vii)
shall prioritize projects located in designated

SB3598 - 35 - LRB103 38719 CES 68856 b
environmental justice communities, as defined in
subsection (b) of Section 1-56 of this Act, or in
projects located in units of local government with
median incomes that do not exceed 82% of the median
income of the State.
(H) The procurement of renewable energy resources for
a given delivery year shall be reduced as described in
this subparagraph (H) if an alternative retail electric
supplier meets the requirements described in this
subparagraph (H).
(i) Within 45 days after June 1, 2017 (the
effective date of Public Act 99-906), an alternative
retail electric supplier or its successor shall submit
an informational filing to the Illinois Commerce
Commission certifying that, as of December 31, 2015,
the alternative retail electric supplier owned one or
more electric generating facilities that generates
renewable energy resources as defined in Section 1-10
of this Act, provided that such facilities are not
powered by wind or photovoltaics, and the facilities
generate one renewable energy credit for each
megawatthour of energy produced from the facility.
The informational filing shall identify each
facility that was eligible to satisfy the alternative
retail electric supplier's obligations under Section
16-115D of the Public Utilities Act as described in

SB3598 - 36 - LRB103 38719 CES 68856 b
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
supplier under this subparagraph (H) shall be 68%

SB3598 - 37 - LRB103 38719 CES 68856 b
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
energy credit quantity for the delivery year beginning

SB3598 - 38 - LRB103 38719 CES 68856 b
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.
On or before April 1 of each year, the Agency shall

SB3598 - 39 - LRB103 38719 CES 68856 b
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 citizens of this State. In order to
further these legislative purposes, renewable energy
credits shall be eligible to be counted toward the
renewable energy requirements of this subsection (c) if
they are generated from facilities located in this State.
The Agency may qualify renewable energy credits from
facilities located in states adjacent to Illinois or
renewable energy credits associated with the electricity
generated by a utility-scale wind energy facility or
utility-scale photovoltaic facility and transmitted by a
qualifying direct current project described in subsection

SB3598 - 40 - LRB103 38719 CES 68856 b
(b-5) of Section 8-406 of the Public Utilities Act to a
delivery point on the electric transmission grid located
in this State or a state adjacent to Illinois, if the
generator demonstrates and the Agency determines that the
operation of such facility or facilities will help promote
the State's interest in the health, safety, and welfare of
its residents based on the public interest criteria
described above. For the purposes of this Section,
renewable resources that are delivered via a high voltage
direct current converter station located in Illinois shall
be deemed generated in Illinois at the time and location
the energy is converted to alternating current by the high
voltage direct current converter station if the high
voltage direct current transmission line: (i) after the
effective date of this amendatory Act of the 102nd General
Assembly, was constructed with a project labor agreement;
(ii) is capable of transmitting electricity at 525kv;
(iii) has an Illinois converter station located and
interconnected in the region of the PJM Interconnection,
LLC; (iv) does not operate as a public utility; and (v) if
the high voltage direct current transmission line was
energized after June 1, 2023. To ensure that the public
interest criteria are applied to the procurement and given
full effect, the Agency's long-term procurement plan shall
describe in detail how each public interest factor shall
be considered and weighted for facilities located in

SB3598 - 41 - LRB103 38719 CES 68856 b
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
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

SB3598 - 42 - LRB103 38719 CES 68856 b
(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. As long as a
generating unit or an identifiable portion of a generating
unit has not had and does not have its costs recovered
through rates regulated by this State or any other state,
HVDC renewable energy credits associated with that
generating unit or identifiable portion thereof shall be
eligible to be counted toward the renewable energy
requirements of this subsection (c).
(K) The long-term renewable resources procurement plan
developed by the Agency in accordance with subparagraph
(A) of this paragraph (1) shall include an Adjustable
Block program for the procurement of renewable energy
credits from new photovoltaic projects that are
distributed renewable energy generation devices or new
photovoltaic community renewable generation projects. The
Adjustable Block program shall be generally designed to
provide for the steady, predictable, and sustainable
growth of new solar photovoltaic development in Illinois.
To this end, the Adjustable Block program shall provide a
transparent annual schedule of prices and quantities to

SB3598 - 43 - LRB103 38719 CES 68856 b
enable the photovoltaic market to scale up and for
renewable energy credit prices to adjust at a predictable
rate over time. The prices set by the Adjustable Block
program can be reflected as a set value or as the product
of a formula.
The Adjustable Block program shall include for each
category of eligible projects for each delivery year: a
single block of nameplate capacity, a price for renewable
energy credits within that block, and the terms and
conditions for securing a spot on a waitlist once the
block is fully committed or reserved. Except as outlined
below, the waitlist of projects in a given year will carry
over to apply to the subsequent year when another block is
opened. Only projects energized on or after June 1, 2017
shall be eligible for the Adjustable Block program. For
each category for each delivery year the Agency shall
determine the amount of generation capacity in each block,
and the purchase price for each block, provided that the
purchase price provided and the total amount of generation
in all blocks for all categories shall be sufficient to
meet the goals in this subsection (c). The Agency shall
strive to issue a single block sized to provide for
stability and market growth. The Agency shall establish
program eligibility requirements that ensure that projects
that enter the program are sufficiently mature to indicate
a demonstrable path to completion. The Agency may

SB3598 - 44 - LRB103 38719 CES 68856 b
periodically review its prior decisions establishing the
amount of generation capacity in each block, and the
purchase price for each block, and may propose, on an
expedited basis, changes to these previously set values,
including but not limited to redistributing these amounts
and the available funds as necessary and appropriate,
subject to Commission approval as part of the periodic
plan revision process described in Section 16-111.5 of the
Public Utilities Act. The Agency may define different
block sizes, purchase prices, or other distinct terms and
conditions for projects located in different utility
service territories if the Agency deems it necessary to
meet the goals in this subsection (c).
The Adjustable Block program shall include the
following categories in at least the following amounts:
(i) At least 20% from distributed renewable energy
generation devices with a nameplate capacity of no
more than 25 kilowatts.
(ii) At least 20% from distributed renewable
energy generation devices with a nameplate capacity of
more than 25 kilowatts and no more than 5,000
kilowatts. The Agency may create sub-categories within
this category to account for the differences between
projects for small commercial customers, large
commercial customers, and public or non-profit
customers.

SB3598 - 45 - LRB103 38719 CES 68856 b
(iii) At least 30% from photovoltaic community
renewable generation projects. Capacity for this
category for the first 2 delivery years after the
effective date of this amendatory Act of the 102nd
General Assembly shall be allocated to waitlist
projects as provided in paragraph (3) of item (iv) of
subparagraph (G). Starting in the third delivery year
after the effective date of this amendatory Act of the
102nd General Assembly or earlier if the Agency
determines there is additional capacity needed for to
meet previous delivery year requirements, the
following shall apply:
(1) the Agency shall select projects on a
first-come, first-serve basis, however the Agency
may suggest additional methods to prioritize
projects that are submitted at the same time;
(2) projects shall have subscriptions of 25 kW
or less for at least 50% of the facility's
nameplate capacity and the Agency shall price the
renewable energy credits with that as a factor;
(3) projects shall not be colocated with one
or more other community renewable generation
projects, as defined in the Agency's first revised
long-term renewable resources procurement plan
approved by the Commission on February 18, 2020,
such that the aggregate nameplate capacity exceeds

SB3598 - 46 - LRB103 38719 CES 68856 b
5,000 kilowatts; and
(4) projects greater than 2 MW may not apply
until after the approval of the Agency's revised
Long-Term Renewable Resources Procurement Plan
after the effective date of this amendatory Act of
the 102nd General Assembly.
(iv) At least 15% from distributed renewable
generation devices or photovoltaic community renewable
generation projects installed on public school land.
The Agency may create subcategories within this
category to account for the differences between
project size or location. Projects located within
environmental justice communities or within
Organizational Units that fall within Tier 1 or Tier 2
shall be given priority. Each of the Agency's periodic
updates to its long-term renewable resources
procurement plan to incorporate the procurement
described in this subparagraph (iv) shall also include
the proposed quantities or blocks, pricing, and
contract terms applicable to the procurement as
indicated herein. In each such update and procurement,
the Agency shall set the renewable energy credit price
and establish payment terms for the renewable energy
credits procured pursuant to this subparagraph (iv)
that make it feasible and affordable for public
schools to install photovoltaic distributed renewable

SB3598 - 47 - LRB103 38719 CES 68856 b
energy devices on their premises, including, but not
limited to, those public schools subject to the
prioritization provisions of this subparagraph. For
the purposes of this item (iv):
"Environmental Justice Community" shall have the
same meaning set forth in the Agency's long-term
renewable resources procurement plan;
"Organization Unit", "Tier 1" and "Tier 2" shall
have the meanings set for in Section 18-8.15 of the
School Code;
"Public schools" shall have the meaning set forth
in Section 1-3 of the School Code and includes public
institutions of higher education, as defined in the
Board of Higher Education Act.
(v) At least 5% from community-driven community
solar projects intended to provide more direct and
tangible connection and benefits to the communities
which they serve or in which they operate and,
additionally, to increase the variety of community
solar locations, models, and options in Illinois. As
part of its long-term renewable resources procurement
plan, the Agency shall develop selection criteria for
projects participating in this category. Nothing in
this Section shall preclude the Agency from creating a
selection process that maximizes community ownership
and community benefits in selecting projects to

SB3598 - 48 - LRB103 38719 CES 68856 b
receive renewable energy credits. Selection criteria
shall include:
(1) community ownership or community
wealth-building;
(2) additional direct and indirect community
benefit, beyond project participation as a
subscriber, including, but not limited to,
economic, environmental, social, cultural, and
physical benefits;
(3) meaningful involvement in project
organization and development by community members
or nonprofit organizations or public entities
located in or serving the community;
(4) engagement in project operations and
management by nonprofit organizations, public
entities, or community members; and
(5) whether a project is developed in response
to a site-specific RFP developed by community
members or a nonprofit organization or public
entity located in or serving the community.
Selection criteria may also prioritize projects
that:
(1) are developed in collaboration with or to
provide complementary opportunities for the Clean
Jobs Workforce Network Program, the Illinois
Climate Works Preapprenticeship Program, the

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Returning Residents Clean Jobs Training Program,
the Clean Energy Contractor Incubator Program, or
the Clean Energy Primes Contractor Accelerator
Program;
(2) increase the diversity of locations of
community solar projects in Illinois, including by
locating in urban areas and population centers;
(3) are located in Equity Investment Eligible
Communities;
(4) are not greenfield projects;
(5) serve only local subscribers;
(6) have a nameplate capacity that does not
exceed 500 kW;
(7) are developed by an equity eligible
contractor; or
(8) otherwise meaningfully advance the goals
of providing more direct and tangible connection
and benefits to the communities which they serve
or in which they operate and increasing the
variety of community solar locations, models, and
options in Illinois.
For the purposes of this item (v):
"Community" means a social unit in which people
come together regularly to effect change; a social
unit in which participants are marked by a cooperative
spirit, a common purpose, or shared interests or

SB3598 - 50 - LRB103 38719 CES 68856 b
characteristics; or a space understood by its
residents to be delineated through geographic
boundaries or landmarks.
"Community benefit" means a range of services and
activities that provide affirmative, economic,
environmental, social, cultural, or physical value to
a community; or a mechanism that enables economic
development, high-quality employment, and education
opportunities for local workers and residents, or
formal monitoring and oversight structures such that
community members may ensure that those services and
activities respond to local knowledge and needs.
"Community ownership" means an arrangement in
which an electric generating facility is, or over time
will be, in significant part, owned collectively by
members of the community to which an electric
generating facility provides benefits; members of that
community participate in decisions regarding the
governance, operation, maintenance, and upgrades of
and to that facility; and members of that community
benefit from regular use of that facility.
Terms and guidance within these criteria that are
not defined in this item (v) shall be defined by the
Agency, with stakeholder input, during the development
of the Agency's long-term renewable resources
procurement plan. The Agency shall develop regular

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opportunities for projects to submit applications for
projects under this category, and develop selection
criteria that gives preference to projects that better
meet individual criteria as well as projects that
address a higher number of criteria.
(vi) At least 10% from distributed renewable
energy generation devices, which includes distributed
renewable energy devices with a nameplate capacity
under 5,000 kilowatts or photovoltaic community
renewable generation projects, from applicants that
are equity eligible contractors. The Agency may create
subcategories within this category to account for the
differences between project size and type. The Agency
shall propose to increase the percentage in this item
(vi) over time to 40% based on factors, including, but
not limited to, the number of equity eligible
contractors and capacity used in this item (vi) in
previous delivery years.
The Agency shall propose a payment structure for
contracts executed pursuant to this paragraph under
which, upon a demonstration of qualification or need,
applicant firms are advanced capital disbursed after
contract execution but before the contracted project's
energization. The amount or percentage of capital
advanced prior to project energization shall be
sufficient to both cover any increase in development

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costs resulting from prevailing wage requirements or
project-labor agreements, and designed to overcome
barriers in access to capital faced by equity eligible
contractors. The amount or percentage of advanced
capital may vary by subcategory within this category
and by an applicant's demonstration of need, with such
levels to be established through the Long-Term
Renewable Resources Procurement Plan authorized under
subparagraph (A) of paragraph (1) of subsection (c) of
this Section.
Contracts developed featuring capital advanced
prior to a project's energization shall feature
provisions to ensure both the successful development
of applicant projects and the delivery of the
renewable energy credits for the full term of the
contract, including ongoing collateral requirements
and other provisions deemed necessary by the Agency,
and may include energization timelines longer than for
comparable project types. The percentage or amount of
capital advanced prior to project energization shall
not operate to increase the overall contract value,
however contracts executed under this subparagraph may
feature renewable energy credit prices higher than
those offered to similar projects participating in
other categories. Capital advanced prior to
energization shall serve to reduce the ratable

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payments made after energization under items (ii) and
(iii) of subparagraph (L) or payments made for each
renewable energy credit delivery under item (iv) of
subparagraph (L).
(vii) The remaining capacity shall be allocated by
the Agency in order to respond to market demand. The
Agency shall allocate any discretionary capacity prior
to the beginning of each delivery year.
To the extent there is uncontracted capacity from any
block in any of categories (i) through (vi) at the end of a
delivery year, the Agency shall redistribute that capacity
to one or more other categories giving priority to
categories with projects on a waitlist. The redistributed
capacity shall be added to the annual capacity in the
subsequent delivery year, and the price for renewable
energy credits shall be the price for the new delivery
year. Redistributed capacity shall not be considered
redistributed when determining whether the goals in this
subsection (K) have been met.
Notwithstanding anything to the contrary, as the
Agency increases the capacity in item (vi) to 40% over
time, the Agency may reduce the capacity of items (i)
through (v) proportionate to the capacity of the
categories of projects in item (vi), to achieve a balance
of project types.
The Adjustable Block program shall be designed to

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ensure that renewable energy credits are procured from
projects in diverse locations and are not concentrated in
a few regional areas.
(L) Notwithstanding provisions for advancing capital
prior to project energization found in item (vi) of
subparagraph (K), the procurement of photovoltaic
renewable energy credits under items (i) through (vi) of
subparagraph (K) of this paragraph (1) shall otherwise be
subject to the following contract and payment terms:
(i) (Blank).
(ii) For those renewable energy credits that
qualify and are procured under item (i) of
subparagraph (K) of this paragraph (1), and any
similar category projects that are procured under item
(vi) of subparagraph (K) of this paragraph (1) that
qualify and are procured under item (vi), the contract
length shall be 15 years. The renewable energy credit
delivery contract value shall be paid in full, based
on the estimated generation during the first 15 years
of operation, by the contracting utilities at the time
that the facility producing the renewable energy
credits is interconnected at the distribution system
level of the utility and verified as energized and
compliant by the Program Administrator. The electric
utility shall receive and retire all renewable energy
credits generated by the project for the first 15

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

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qualify and are procured under items (iii) and (iv) of
subparagraph (K) of this paragraph (1), and any like
projects that qualify and are procured under item
(vi), the renewable energy credit delivery contract
length shall be 20 years and shall be paid over the
delivery term, not to exceed during each delivery year
the contract price multiplied by the estimated annual
renewable energy credit generation amount. If
generation of renewable energy credits during a
delivery year exceeds the estimated annual generation
amount, the excess renewable energy credits shall be
carried forward to future delivery years and shall not
expire during the delivery term. If generation of
renewable energy credits during a delivery year,
including carried forward excess renewable energy
credits, if any, is less than the estimated annual
generation amount, payments during such delivery year
will not exceed the quantity generated plus the
quantity carried forward multiplied by the contract
price. The electric utility shall receive all
renewable energy credits generated by the project
during the first 20 years of operation and retire all
renewable energy credits paid for under this item (iv)
and return at the end of the delivery term all
renewable energy credits that were not paid for.
Renewable energy credits generated by the project

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thereafter shall not be transferred under the
renewable energy credit delivery contract with the
counterparty electric utility. Notwithstanding the
preceding, for those projects participating under item
(iii) of subparagraph (K), the contract price for a
delivery year shall be based on subscription levels as
measured on the higher of the first business day of the
delivery year or the first business day 6 months after
the first business day of the delivery year.
Subscription of 90% of nameplate capacity or greater
shall be deemed to be fully subscribed for the
purposes of this item (iv). For projects receiving a
20-year delivery contract, REC prices shall be
adjusted downward for consistency with the incentive
levels previously determined to be necessary to
support projects under 15-year delivery contracts,
taking into consideration any additional new
requirements placed on the projects, including, but
not limited to, labor standards.
(v) Each contract shall include provisions to
ensure the delivery of the estimated quantity of
renewable energy credits and ongoing collateral
requirements and other provisions deemed appropriate
by the Agency.
(vi) The utility shall be the counterparty to the
contracts executed under this subparagraph (L) that

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are approved by the Commission under the process
described in Section 16-111.5 of the Public Utilities
Act. No contract shall be executed for an amount that
is less than one renewable energy credit per year.
(vii) If, at any time, approved applications for
the Adjustable Block program exceed funds collected by
the electric utility or would cause the Agency to
exceed the limitation described in subparagraph (E) of
this paragraph (1) on the amount of renewable energy
resources that may be procured, then the Agency may
consider future uncommitted funds to be reserved for
these contracts on a first-come, first-served basis.
(viii) Nothing in this Section shall require the
utility to advance any payment or pay any amounts that
exceed the actual amount of revenues anticipated to be
collected by the utility under paragraph (6) of this
subsection (c) and subsection (k) of Section 16-108 of
the Public Utilities Act inclusive of eligible funds
collected in prior years and alternative compliance
payments for use by the utility, and contracts
executed under this Section shall expressly
incorporate this limitation.
(ix) Notwithstanding other requirements of this
subparagraph (L), no modification shall be required to
Adjustable Block program contracts if they were
already executed prior to the establishment, approval,

SB3598 - 59 - LRB103 38719 CES 68856 b
and implementation of new contract forms as a result
of this amendatory Act of the 102nd General Assembly.
(x) Contracts may be assignable, but only to
entities first deemed by the Agency to have met
program terms and requirements applicable to direct
program participation. In developing contracts for the
delivery of renewable energy credits, the Agency shall
be permitted to establish fees applicable to each
contract assignment.
(M) The Agency shall be authorized to retain one or
more experts or expert consulting firms to develop,
administer, implement, operate, and evaluate the
Adjustable Block program described in subparagraph (K) of
this paragraph (1), and the Agency shall retain the
consultant or consultants in the same manner, to the
extent practicable, as the Agency retains others to
administer provisions of this Act, including, but not
limited to, the procurement administrator. The selection
of experts and expert consulting firms and the procurement
process described in this subparagraph (M) are exempt from
the requirements of Section 20-10 of the Illinois
Procurement Code, under Section 20-10 of that Code. The
Agency shall strive to minimize administrative expenses in
the implementation of the Adjustable Block program.
The Program Administrator may charge application fees
to participating firms to cover the cost of program

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administration. Any application fee amounts shall
initially be determined through the long-term renewable
resources procurement plan, and modifications to any
application fee that deviate more than 25% from the
Commission's approved value must be approved by the
Commission as a long-term plan revision under Section
16-111.5 of the Public Utilities Act. The Agency shall
consider stakeholder feedback when making adjustments to
application fees and shall notify stakeholders in advance
of any planned changes.
In addition to covering the costs of program
administration, the Agency, in conjunction with its
Program Administrator, may also use the proceeds of such
fees charged to participating firms to support public
education and ongoing regional and national coordination
with nonprofit organizations, public bodies, and others
engaged in the implementation of renewable energy
incentive programs or similar initiatives. This work may
include developing papers and reports, hosting regional
and national conferences, and other work deemed necessary
by the Agency to position the State of Illinois as a
national leader in renewable energy incentive program
development and administration.
The Agency and its consultant or consultants shall
monitor block activity, share program activity with
stakeholders and conduct quarterly meetings to discuss

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

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procurement plan described in this subsection (c) and
paragraph (5) of subsection (b) of Section 16-111.5 of the
Public Utilities Act. Terms, conditions, and requirements
for program participation shall include the following:
(i) The Agency shall establish a registration
process for entities seeking to qualify for
program-administered incentive funding and establish
baseline qualifications for vendor approval. The
Agency must maintain a list of approved entities on
each program's website, and may revoke a vendor's
ability to receive program-administered incentive
funding status upon a determination that the vendor
failed to comply with contract terms, the law, or
other program requirements.
(ii) The Agency shall establish program
requirements and minimum contract terms to ensure
projects are properly installed and produce their
expected amounts of energy. Program requirements may
include on-site inspections and photo documentation of
projects under construction. The Agency may require
repairs, alterations, or additions to remedy any
material deficiencies discovered. Vendors who have a
disproportionately high number of deficient systems
may lose their eligibility to continue to receive
State-administered incentive funding through Agency
programs and procurements.

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(iii) To discourage deceptive marketing or other
bad faith business practices, the Agency may require
direct program participants, including agents
operating on their behalf, to provide standardized
disclosures to a customer prior to that customer's
execution of a contract for the development of a
distributed generation system or a subscription to a
community solar project.
(iv) The Agency shall establish one or multiple
Consumer Complaints Centers to accept complaints
regarding businesses that participate in, or otherwise
benefit from, State-administered incentive funding
through Agency-administered programs. The Agency shall
maintain a public database of complaints with any
confidential or particularly sensitive information
redacted from public entries.
(v) Through a filing in the proceeding for the
approval of its long-term renewable energy resources
procurement plan, the Agency shall provide an annual
written report to the Illinois Commerce Commission
documenting the frequency and nature of complaints and
any enforcement actions taken in response to those
complaints.
(vi) The Agency shall schedule regular meetings
with representatives of the Office of the Attorney
General, the Illinois Commerce Commission, consumer

SB3598 - 64 - LRB103 38719 CES 68856 b
protection groups, and other interested stakeholders
to share relevant information about consumer
protection, project compliance, and complaints
received.
(vii) To the extent that complaints received
implicate the jurisdiction of the Office of the
Attorney General, the Illinois Commerce Commission, or
local, State, or federal law enforcement, the Agency
shall also refer complaints to those entities as
appropriate.
(N) The Agency shall establish the terms, conditions,
and program requirements for photovoltaic community
renewable generation projects with a goal to expand access
to a broader group of energy consumers, to ensure robust
participation opportunities for residential and small
commercial customers and those who cannot install
renewable energy on their own properties. Subject to
reasonable limitations, any plan approved by the
Commission shall allow subscriptions to community
renewable generation projects to be portable and
transferable. For purposes of this subparagraph (N),
"portable" means that subscriptions may be retained by the
subscriber even if the subscriber relocates or changes its
address within the same utility service territory; and
"transferable" means that a subscriber may assign or sell
subscriptions to another person within the same utility

SB3598 - 65 - LRB103 38719 CES 68856 b
service territory.
Through the development of its long-term renewable
resources procurement plan, the Agency may consider
whether community renewable generation projects utilizing
technologies other than photovoltaics should be supported
through State-administered incentive funding, and may
issue requests for information to gauge market demand.
Electric utilities shall provide a monetary credit to
a subscriber's subsequent bill for service for the
proportional output of a community renewable generation
project attributable to that subscriber as specified in
Section 16-107.5 of the Public Utilities Act.
The Agency shall purchase renewable energy credits
from subscribed shares of photovoltaic community renewable
generation projects through the Adjustable Block program
described in subparagraph (K) of this paragraph (1) or
through the Illinois Solar for All Program described in
Section 1-56 of this Act. The electric utility shall
purchase any unsubscribed energy from community renewable
generation projects that are Qualifying Facilities ("QF")
under the electric utility's tariff for purchasing the
output from QFs under Public Utilities Regulatory Policies
Act of 1978.
The owners of and any subscribers to a community
renewable generation project shall not be considered
public utilities or alternative retail electricity

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suppliers under the Public Utilities Act solely as a
result of their interest in or subscription to a community
renewable generation project and shall not be required to
become an alternative retail electric supplier by
participating in a community renewable generation project
with a public utility.
(O) For the delivery year beginning June 1, 2018, the
long-term renewable resources procurement plan required by
this subsection (c) shall provide for the Agency to
procure contracts to continue offering the Illinois Solar
for All Program described in subsection (b) of Section
1-56 of this Act, and the contracts approved by the
Commission shall be executed by the utilities that are
subject to this subsection (c). The long-term renewable
resources procurement plan shall allocate up to
$50,000,000 per delivery year to fund the programs, and
the plan shall determine the amount of funding to be
apportioned to the programs identified in subsection (b)
of Section 1-56 of this Act; provided that for the
delivery years beginning June 1, 2021, June 1, 2022, and
June 1, 2023, the long-term renewable resources
procurement plan may average the annual budgets over a
3-year period to account for program ramp-up. For the
delivery years beginning June 1, 2021, June 1, 2024, June
1, 2027, and June 1, 2030 and additional $10,000,000 shall
be provided to the Department of Commerce and Economic

SB3598 - 67 - LRB103 38719 CES 68856 b
Opportunity to implement the workforce development
programs and reporting as outlined in Section 16-108.12 of
the Public Utilities Act. In making the determinations
required under this subparagraph (O), the Commission shall
consider the experience and performance under the programs
and any evaluation reports. The Commission shall also
provide for an independent evaluation of those programs on
a periodic basis that are funded under this subparagraph
(O).
(P) All programs and procurements under this
subsection (c) shall be designed to encourage
participating projects to use a diverse and equitable
workforce and a diverse set of contractors, including
minority-owned businesses, disadvantaged businesses,
trade unions, graduates of any workforce training programs
administered under this Act, and small businesses.
Notwithstanding any other provision of law, in all
competitive procurements conducted by the Agency after the
effective date of this amendatory Act of the 103rd General
Assembly for procurement of utility-scale energy storage
resources from owners of existing or retired fossil-fueled
power plants, the Agency, in ranking the bids for
evaluation and selection, shall apply a downward bid price
adjustment to the bid submitted by any project that is
located or proposed to be located within a one-mile radius
of an existing substation that serves or has served as a

SB3598 - 68 - LRB103 38719 CES 68856 b
point of interconnection for a fossil-fueled power plant
that was retired subsequent to December 31, 2015 or whose
owner commits to retire by no later than December 31,
2035, and that (i) is located or proposed to be located in
an equity investment eligible community, as defined by the
Illinois Power Agency pursuant to this Act; (ii) is
located or proposed to be located within an area that was
identified by the Illinois Power Agency as an Energy
Transition Grant Area in Appendix 16 of the Illinois Power
Agency's final Fall 2023 Renewable Energy Credit Request
for Proposal Documents dated September 29, 2023; or (iii)
has submitted an interconnection request with the
applicable regional transmission organization or
independent transmission system operator. If a project
submitting a bid in a procurement event described in this
paragraph meets 2 or more of the 3 enumerated criterion
set forth in the preceding sentence, the Agency shall
apply the bid price adjustment two times in ranking and
evaluating the bid submitted by the project. It is the
intent of the General Assembly in enacting this paragraph
to (i) provide a preference for projects located or to be
located in areas which the General Assembly finds and
concludes have experienced or will experience adverse
economic and employment impacts due to closure of a
fossil-fueled power plant or coal mine, which closures
have helped to advance the State's decarbonization goals,

SB3598 - 69 - LRB103 38719 CES 68856 b
and which preference will help to provide a just
transition for the areas in which closed fossil power
plants and coal mines are located; and (ii) provide a
preference for projects that are located in either an
environmental justice community or an R3 program
community, as those terms are used in the Illinois Power
Agency Act.
The Agency shall develop a method to optimize
procurement of renewable energy credits from proposed
utility-scale projects that are located in communities
eligible to receive Energy Transition Community Grants
pursuant to Section 10-20 of the Energy Community
Reinvestment Act. If this requirement conflicts with other
provisions of law or the Agency determines that full
compliance with the requirements of this subparagraph (P)
would be unreasonably costly or administratively
impractical, the Agency is to propose alternative
approaches to achieve development of renewable energy
resources in communities eligible to receive Energy
Transition Community Grants pursuant to Section 10-20 of
the Energy Community Reinvestment Act or seek an exemption
from this requirement from the Commission.
(Q) Each facility listed in subitems (i) through (ix)
of item (1) of this subparagraph (Q) for which a renewable
energy credit delivery contract is signed after the
effective date of this amendatory Act of the 102nd General

SB3598 - 70 - LRB103 38719 CES 68856 b
Assembly is subject to the following requirements through
the Agency's long-term renewable resources procurement
plan:
(1) Each facility shall be subject to the
prevailing wage requirements included in the
Prevailing Wage Act. The Agency shall require
verification that all construction performed on the
facility by the renewable energy credit delivery
contract holder, its contractors, or its
subcontractors relating to construction of the
facility is performed by construction employees
receiving an amount for that work equal to or greater
than the general prevailing rate, as that term is
defined in Section 3 of the Prevailing Wage Act. For
purposes of this item (1), "house of worship" means
property that is both (1) used exclusively by a
religious society or body of persons as a place for
religious exercise or religious worship and (2)
recognized as exempt from taxation pursuant to Section
15-40 of the Property Tax Code. This item (1) shall
apply to any the following:
(i) all new utility-scale wind projects;
(ii) all new utility-scale photovoltaic
projects;
(iii) all new brownfield photovoltaic
projects;

SB3598 - 71 - LRB103 38719 CES 68856 b
(iv) all new photovoltaic community renewable
energy facilities that qualify for item (iii) of
subparagraph (K) of this paragraph (1);
(v) all new community driven community
photovoltaic projects that qualify for item (v) of
subparagraph (K) of this paragraph (1);
(vi) all new photovoltaic projects on public
school land that qualify for item (iv) of
subparagraph (K) of this paragraph (1);
(vii) all new photovoltaic distributed
renewable energy generation devices that (1)
qualify for item (i) of subparagraph (K) of this
paragraph (1); (2) are not projects that serve
single-family or multi-family residential
buildings; and (3) are not houses of worship where
the aggregate capacity including collocated
projects would not exceed 100 kilowatts;
(viii) all new photovoltaic distributed
renewable energy generation devices that (1)
qualify for item (ii) of subparagraph (K) of this
paragraph (1); (2) are not projects that serve
single-family or multi-family residential
buildings; and (3) are not houses of worship where
the aggregate capacity including collocated
projects would not exceed 100 kilowatts;
(ix) all new, modernized, or retooled

SB3598 - 72 - LRB103 38719 CES 68856 b
hydropower facilities.
(2) Renewable energy credits procured from new
utility-scale wind projects, new utility-scale solar
projects, and new brownfield solar projects pursuant
to Agency procurement events occurring after the
effective date of this amendatory Act of the 102nd
General Assembly must be from facilities built by
general contractors that must enter into a project
labor agreement, as defined by this Act, prior to
construction. The project labor agreement shall be
filed with the Director in accordance with procedures
established by the Agency through its long-term
renewable resources procurement plan. Any information
submitted to the Agency in this item (2) shall be
considered commercially sensitive information. At a
minimum, the project labor agreement must provide the
names, addresses, and occupations of the owner of the
plant and the individuals representing the labor
organization employees participating in the project
labor agreement consistent with the Project Labor
Agreements Act. The agreement must also specify the
terms and conditions as defined by this Act.
(3) It is the intent of this Section to ensure that
economic development occurs across Illinois
communities, that emerging businesses may grow, and
that there is improved access to the clean energy

SB3598 - 73 - LRB103 38719 CES 68856 b
economy by persons who have greater economic burdens
to success. The Agency shall take into consideration
the unique cost of compliance of this subparagraph (Q)
that might be borne by equity eligible contractors,
shall include such costs when determining the price of
renewable energy credits in the Adjustable Block
program, and shall take such costs into consideration
in a nondiscriminatory manner when comparing bids for
competitive procurements. The Agency shall consider
costs associated with compliance whether in the
development, financing, or construction of projects.
The Agency shall periodically review the assumptions
in these costs and may adjust prices, in compliance
with subparagraph (M) of this paragraph (1).
(R) In its long-term renewable resources procurement
plan, the Agency shall establish a self-direct renewable
portfolio standard compliance program for eligible
self-direct customers that purchase renewable energy
credits from utility-scale wind and solar projects through
long-term agreements for purchase of renewable energy
credits as described in this Section. Such long-term
agreements may include the purchase of energy or other
products on a physical or financial basis and may involve
an alternative retail electric supplier as defined in
Section 16-102 of the Public Utilities Act. This program
shall take effect in the delivery year commencing June 1,

SB3598 - 74 - LRB103 38719 CES 68856 b
2023.
(1) For the purposes of this subparagraph:
"Eligible self-direct customer" means any retail
customers of an electric utility that serves 3,000,000
or more retail customers in the State and whose total
highest 30-minute demand was more than 10,000
kilowatts, or any retail customers of an electric
utility that serves less than 3,000,000 retail
customers but more than 500,000 retail customers in
the State and whose total highest 15-minute demand was
more than 10,000 kilowatts.
"Retail customer" has the meaning set forth in
Section 16-102 of the Public Utilities Act and
multiple retail customer accounts under the same
corporate parent may aggregate their account demands
to meet the 10,000 kilowatt threshold. The criteria
for determining whether this subparagraph is
applicable to a retail customer shall be based on the
12 consecutive billing periods prior to the start of
the year in which the application is filed.
(2) For renewable energy credits to count toward
the self-direct renewable portfolio standard
compliance program, they must:
(i) qualify as renewable energy credits as
defined in Section 1-10 of this Act;
(ii) be sourced from one or more renewable

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

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

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

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

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

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contracts for new renewable energy resources are
long-term contracts with term lengths of at least
10 years, including supporting documentation;
(iv) certification of the quantities of
renewable energy credits that the customer will
purchase each year under such contract or
contracts, including supporting documentation;
(v) proof that the contract is sufficient to
produce renewable energy credits to be equivalent
in volume to at least 40% of the large energy
customer's usage from the previous delivery year,
measured to the nearest megawatt-hour; and
(vi) certification that the customer intends
to maintain the contract for the duration of the
length of the contract.
(6) If a customer receives the self-direct credit
but fails to properly procure and retire renewable
energy credits as required under this subparagraph
(R), the Commission, on petition from the Agency and
after notice and hearing, may direct such customer's
utility to recover the cost of the wrongfully received
self-direct credits plus interest through an adder to
charges assessed pursuant to Section 16-108 of the
Public Utilities Act. Self-direct customers who
knowingly fail to properly procure and retire
renewable energy credits and do not notify the Agency

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are ineligible for continued participation in the
self-direct renewable portfolio standard compliance
program.
(2) (Blank).
(3) (Blank).
(4) The electric utility shall retire all renewable
energy credits used to comply with the standard.
(5) Beginning with the 2010 delivery year and ending
June 1, 2017, an electric utility subject to this
subsection (c) shall apply the lesser of the maximum
alternative compliance payment rate or the most recent
estimated alternative compliance payment rate for its
service territory for the corresponding compliance period,
established pursuant to subsection (d) of Section 16-115D
of the Public Utilities Act to its retail customers that
take service pursuant to the electric utility's hourly
pricing tariff or tariffs. The electric utility shall
retain all amounts collected as a result of the
application of the alternative compliance payment rate or
rates to such customers, and, beginning in 2011, the
utility shall include in the information provided under
item (1) of subsection (d) of Section 16-111.5 of the
Public Utilities Act the amounts collected under the
alternative compliance payment rate or rates for the prior
year ending May 31. Notwithstanding any limitation on the
procurement of renewable energy resources imposed by item

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

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

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means a new utility-scale solar project as defined in this
Section 1-75. The renewable energy credits procured
pursuant to this subsection (c-5) may be included or
counted for purposes of compliance with the amounts of
renewable energy credits required to be procured pursuant
to subsection (c) of this Section to the extent that there
are otherwise shortfalls in compliance with such
requirements. The procurement of renewable energy credits
by electric utilities pursuant to this subsection (c-5)
shall be funded solely by revenues collected from the Coal
to Solar and Energy Storage Initiative Charge provided for
in this subsection (c-5) and subsection (i-5) of Section
16-108 of the Public Utilities Act, shall not be funded by
revenues collected through any of the other funding
mechanisms provided for in subsection (c) of this Section,
and shall not be subject to the limitation imposed by
subsection (c) on charges to retail customers for costs to
procure renewable energy resources pursuant to subsection
(c), and shall not be subject to any other requirements or
limitations of subsection (c).
(2) The Agency shall conduct 2 procurement events to
select owners of electric generating facilities meeting
the eligibility criteria specified in this subsection
(c-5) to enter into long-term contracts to sell renewable
energy credits to electric utilities serving more than
300,000 retail customers in this State as of January 1,

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2019. The first procurement event shall be conducted no
later than March 31, 2022, unless the Agency elects to
delay it, until no later than May 1, 2022, due to its
overall volume of work, and shall be to select owners of
electric generating facilities located in this State and
south of federal Interstate Highway 80 that meet the
eligibility criteria specified in this subsection (c-5).
The second procurement event shall be conducted no sooner
than September 30, 2022 and no later than October 31, 2022
and shall be to select owners of electric generating
facilities located anywhere in this State that meet the
eligibility criteria specified in this subsection (c-5).
The Agency shall establish and announce a time period,
which shall begin no later than 30 days prior to the
scheduled date for the procurement event, during which
applicants may submit applications to be selected as
suppliers of renewable energy credits pursuant to this
subsection (c-5). The eligibility criteria for selection
as a supplier of renewable energy credits pursuant to this
subsection (c-5) shall be as follows:
(A) The applicant owns an electric generating
facility located in this State that: (i) as of January
1, 2016, burned coal as its primary fuel to generate
electricity; and (ii) has, or had prior to retirement,
an electric generating capacity of at least 150
megawatts. The electric generating facility can be

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either: (i) retired as of the date of the procurement
event; or (ii) still operating as of the date of the
procurement event.
(B) The applicant is not (i) an electric
cooperative as defined in Section 3-119 of the Public
Utilities Act, or (ii) an entity described in
subsection (b)(1) of Section 3-105 of the Public
Utilities Act, or an association or consortium of or
an entity owned by entities described in (i) or (ii);
and the coal-fueled electric generating facility was
at one time owned, in whole or in part, by a public
utility as defined in Section 3-105 of the Public
Utilities Act.
(C) If participating in the first procurement
event, the applicant proposes and commits to construct
and operate, at the site, and if necessary for
sufficient space on property adjacent to the existing
property, at which the electric generating facility
identified in paragraph (A) is located: (i) a new
renewable energy facility of at least 20 megawatts but
no more than 100 megawatts of electric generating
capacity, and (ii) an energy storage facility having a
storage capacity equal to at least 2 megawatts and at
most 10 megawatts. If participating in the second
procurement event, the applicant proposes and commits
to construct and operate, at the site, and if

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

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

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

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

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

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

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

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reasonable ranges during each 12-month period and penalty,
default, and enforcement provisions for failure of the
selling party to deliver renewable energy credits as
specified in the contract and to comply with the
requirements of this subsection (c-5). The standard form
contract shall specify that all renewable energy credits
delivered to the electric utility pursuant to the contract
shall be retired. The Agency shall make the proposed
contracts available for a reasonable period for comment by
potential applicants, and shall publish the final form
contract at least 30 days before the date of the first
procurement event.
(9) Coal to Solar and Energy Storage Initiative
Charge.
(A) By no later than July 1, 2022, each electric
utility that served more than 300,000 retail customers
in this State as of January 1, 2019 shall file a tariff
with the Commission for the billing and collection of
a Coal to Solar and Energy Storage Initiative Charge
in accordance with subsection (i-5) of Section 16-108
of the Public Utilities Act, with such tariff to be
effective, following review and approval or
modification by the Commission, beginning January 1,
2023. The tariff shall provide for the calculation and
setting of the electric utility's Coal to Solar and
Energy Storage Initiative Charge to collect revenues

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

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

SB3598 - 97 - LRB103 38719 CES 68856 b
this State or in having any such funds utilized for any
purpose other than the express purposes set forth in
this paragraph (10).
(C) The Department shall utilize up to
$280,500,000 in the Coal to Solar and Energy Storage
Initiative Fund for grants, assuming sufficient
qualifying applicants, to support installation of
energy storage facilities at the sites of up to 3
qualifying electric generating facilities located in
the Midcontinent Independent System Operator, Inc.,
region in Illinois and the sites of up to 2 qualifying
electric generating facilities located in the PJM
Interconnection, LLC region in Illinois that meet the
criteria set forth in this subparagraph (C). The
criteria for receipt of a grant pursuant to this
subparagraph (C) are as follows:
(1) the electric generating facility at the
site has, or had prior to retirement, an electric
generating capacity of at least 150 megawatts;
(2) the electric generating facility burns (or
burned prior to retirement) coal as its primary
source of fuel;
(3) if the electric generating facility is
retired, it was retired subsequent to January 1,
2016;
(4) the owner of the electric generating

SB3598 - 98 - LRB103 38719 CES 68856 b
facility has not been selected by the Agency
pursuant to this subsection (c-5) of this Section
to enter into a contract to sell renewable energy
credits to one or more electric utilities from a
new renewable energy facility located or to be
located at or adjacent to the site at which the
electric generating facility is located;
(5) the electric generating facility located
at the site was at one time owned, in whole or in
part, by a public utility as defined in Section
3-105 of the Public Utilities Act;
(6) the electric generating facility at the
site is not owned by (i) an electric cooperative
as defined in Section 3-119 of the Public
Utilities Act, or (ii) an entity described in
subsection (b)(1) of Section 3-105 of the Public
Utilities Act, or an association or consortium of
or an entity owned by entities described in items
(i) or (ii);
(7) the proposed energy storage facility at
the site will have energy storage capacity of at
least 37 megawatts;
(8) the owner commits to place the energy
storage facility into commercial operation on
either June 1, 2023, June 1, 2024, or June 1, 2025,
with such date subject to adjustment as needed due

SB3598 - 99 - LRB103 38719 CES 68856 b
to any delays in completing the grant contracting
process, in finalizing interconnection agreements
and in installing interconnection facilities, and
in obtaining necessary governmental permits and
approvals;
(9) the owner agrees that the new energy
storage facility will be constructed or installed
by a qualified entity or entities consistent with
the requirements of subsection (g) of Section
16-128A of the Public Utilities Act and any rules
adopted under that Section;
(10) the owner agrees that personnel operating
the energy storage facility will have the
requisite skills, knowledge, training, experience,
and competence, which may be demonstrated by
completion or current participation and ultimate
completion by employees of an accredited or
otherwise recognized apprenticeship program for
the employee's particular craft, trade, or skill,
including through training and education courses
and opportunities offered by the owner to
employees of the coal-fueled electric generating
facility or by previous employment experience
performing the employee's particular work skill or
function;
(11) the owner commits that not less than the

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prevailing wage, as determined pursuant to the
Prevailing Wage Act, will be paid to the owner's
employees engaged in construction activities
associated with the new energy storage facility
and to the employees of the owner's contractors
engaged in construction activities associated with
the new energy storage facility, and that, on or
before the commercial operation date of the new
energy storage facility, the owner shall file a
report with the Department certifying that the
requirements of this subparagraph (11) have been
met; and
(12) the owner commits that if selected to
receive a grant, it will negotiate a project labor
agreement for the construction of the new energy
storage facility that includes provisions
requiring the parties to the agreement to work
together to establish diversity threshold
requirements and to ensure best efforts to meet
diversity targets, improve diversity at the
applicable job site, create diverse apprenticeship
opportunities, and create opportunities to employ
former coal-fired power plant workers.
The Department shall accept applications for this
grant program until March 31, 2022 and shall announce
the award of grants no later than June 1, 2022. The

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Department shall make the grant payments to a
recipient in equal annual amounts for 10 years
following the date the energy storage facility is
placed into commercial operation. The annual grant
payments to a qualifying energy storage facility shall
be $110,000 per megawatt of energy storage capacity,
with total annual grant payments pursuant to this
subparagraph (C) for qualifying energy storage
facilities not to exceed $28,050,000 in any year.
(D) Grants of funding for energy storage
facilities pursuant to subparagraph (C) of this
paragraph (10), from the Coal to Solar and Energy
Storage Initiative Fund, shall be memorialized in
grant contracts between the Department and the
recipient. The grant contracts shall specify the date
or dates in each year on which the annual grant
payments shall be paid.
(E) All disbursements from the Coal to Solar and
Energy Storage Initiative Fund shall be made only upon
warrants of the Comptroller drawn upon the Treasurer
as custodian of the Fund upon vouchers signed by the
Director of the Department or by the person or persons
designated by the Director of the Department for that
purpose. The Comptroller is authorized to draw the
warrants upon vouchers so signed. The Treasurer shall
accept all written warrants so signed and shall be

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released from liability for all payments made on those
warrants.
(11) Diversity, equity, and inclusion plans.
(A) Each applicant selected in a procurement event
to contract to supply renewable energy credits in
accordance with this subsection (c-5) and each owner
selected by the Department to receive a grant or
grants to support the construction and operation of a
new energy storage facility or facilities in
accordance with this subsection (c-5) shall, within 60
days following the Commission's approval of the
applicant to contract to supply renewable energy
credits or within 60 days following execution of a
grant contract with the Department, as applicable,
submit to the Commission a diversity, equity, and
inclusion plan setting forth the applicant's or
owner's numeric goals for the diversity composition of
its supplier entities for the new renewable energy
facility or new energy storage facility, as
applicable, which shall be referred to for purposes of
this paragraph (11) as the project, and the
applicant's or owner's action plan and schedule for
achieving those goals.
(B) For purposes of this paragraph (11), diversity
composition shall be based on the percentage, which
shall be a minimum of 25%, of eligible expenditures

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for contract awards for materials and services (which
shall be defined in the plan) to business enterprises
owned by minority persons, women, or persons with
disabilities as defined in Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act, to LGBTQ business enterprises, to
veteran-owned business enterprises, and to business
enterprises located in environmental justice
communities. The diversity composition goals of the
plan may include eligible expenditures in areas for
vendor or supplier opportunities in addition to
development and construction of the project, and may
exclude from eligible expenditures materials and
services with limited market availability, limited
production and availability from suppliers in the
United States, such as solar panels and storage
batteries, and material and services that are subject
to critical energy infrastructure or cybersecurity
requirements or restrictions. The plan may provide
that the diversity composition goals may be met
through Tier 1 Direct or Tier 2 subcontracting
expenditures or a combination thereof for the project.
(C) The plan shall provide for, but not be limited
to: (i) internal initiatives, including multi-tier
initiatives, by the applicant or owner, or by its
engineering, procurement and construction contractor

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

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

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outcomes. Further, it is the purpose of this subsection to
ensure that this equity accountability system is successful in
advancing equity across Illinois by providing access to the
clean energy economy for businesses and workers from
communities that have been historically excluded from economic
opportunities in the energy sector, have been subject to
disproportionate levels of pollution, and have
disproportionately experienced negative public health
outcomes.
(1) Minimum equity standards. The Agency shall create
programs with the purpose of increasing access to and
development of equity eligible contractors, who are prime
contractors and subcontractors, across all of the programs
it manages. All applications for renewable energy credit
procurements shall comply with specific minimum equity
commitments. Starting in the delivery year immediately
following the next long-term renewable resources
procurement plan, at least 10% of the project workforce
for each entity participating in a procurement program
outlined in this subsection (c-10) must be done by equity
eligible persons or equity eligible contractors. The
Agency shall increase the minimum percentage each delivery
year thereafter by increments that ensure a statewide
average of 30% of the project workforce for each entity
participating in a procurement program is done by equity
eligible persons or equity eligible contractors by 2030.

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

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

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

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procurements shall also be required to meet all the equity
accountability requirements for approved vendors and their
designees under this subsection (c-10). In developing
these requirements, the Agency shall also consider whether
equity goals can be further advanced through additional
measures.
(4) In the first revision to the long-term renewable
energy resources procurement plan and each revision
thereafter, the Agency shall include the following:
(A) The current status and number of equity
eligible contractors listed in the Energy Workforce
Equity Database designed in subsection (c-25),
including the number of equity eligible contractors
with current certifications as issued by the Agency.
(B) A mechanism for measuring, tracking, and
reporting project workforce at the approved vendor or
designee level, as applicable, which shall include a
measurement methodology and records to be made
available for audit by the Agency or the Program
Administrator.
(C) A program for approved vendors, designees,
eligible persons, and equity eligible contractors to
receive trainings, guidance, and other support from
the Agency or its designee regarding the equity
category outlined in item (vi) of subparagraph (K) of
paragraph (1) of subsection (c) and in meeting the

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

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

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

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

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

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

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(4) Publication of collected information. The Agency
shall publish, at least annually, information on the
demographics of program participants on an aggregate
basis.
(5) Nothing in this subsection shall be interpreted to
limit the authority of the Agency, or other agency or
department of the State, to require or collect demographic
information from applicants of other State programs.
(c-25) Energy Workforce Equity Database.
(1) The Agency, in consultation with the Department of
Commerce and Economic Opportunity, shall create an Energy
Workforce Equity Database, and may contract with a third
party to do so ("database program administrator"). If the
Department decides to contract with a third party, that
third party shall be exempt from the requirements of
Section 20-10 of the Illinois Procurement Code. The Energy
Workforce Equity Database shall be a searchable database
of suppliers, vendors, and subcontractors for clean energy
industries that is:
(A) publicly accessible;
(B) easy for people to find and use;
(C) organized by company specialty or field;
(D) region-specific; and
(E) populated with information including, but not
limited to, contacts for suppliers, vendors, or
subcontractors who are minority and women-owned

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

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

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

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immediately retire any emission credits that it receives
in connection with the electricity covered by such
agreement.
Utilities shall maintain adequate records documenting
the purchases under the sourcing agreement to comply with
this subsection (d) and shall file an accounting with the
load forecast that must be filed with the Agency by July 15
of each year, in accordance with subsection (d) of Section
16-111.5 of the Public Utilities Act.
A utility shall be deemed to have complied with the
clean coal portfolio standard specified in this subsection
(d) if the utility enters into a sourcing agreement as
required by this subsection (d).
(2) For purposes of this subsection (d), the required
execution of sourcing agreements with the initial clean
coal facility for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) supplied by the electric utility to
eligible retail customers in the planning year ending
immediately prior to the agreement's execution. For
purposes of this subsection (d), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For
purposes of this subsection (d), the total amount paid for
electric service includes without limitation amounts paid
for supply, transmission, distribution, surcharges and

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add-on taxes.
Notwithstanding the requirements of this subsection
(d), the total amount paid under sourcing agreements with
clean coal facilities pursuant to the procurement plan for
any given year shall be reduced by an amount necessary to
limit the annual estimated average net increase due to the
costs of these resources included in the amounts paid by
eligible retail customers in connection with electric
service to:
(A) in 2010, no more than 0.5% of the amount paid
per kilowatthour by those customers during the year
ending May 31, 2009;
(B) in 2011, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2010 or 1% of the amount
paid per kilowatthour by those customers during the
year ending May 31, 2009;
(C) in 2012, the greater of an additional 0.5% of
the amount paid per kilowatthour by those customers
during the year ending May 31, 2011 or 1.5% of the
amount paid per kilowatthour by those customers during
the year ending May 31, 2009;
(D) in 2013, the greater of an additional 0.5% of
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

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

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

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

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

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retail customers;
(C) contract for differences provisions, which
shall:
(i) require the utility party to such sourcing
agreement to contract with the initial clean coal
facility in each hour with respect to an amount of
energy equal to all clean coal energy made
available from the initial clean coal facility
during such hour times a fraction, the numerator
of which is such utility's retail market sales of
electricity (expressed in kilowatthours sold) in
the utility's service territory in the State
during the prior calendar month and the
denominator of which is the total retail market
sales of electricity (expressed in kilowatthours
sold) in the State by utilities during such prior
month and the sales of electricity (expressed in
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this
subsection (d) and paragraph (5) of subsection (d)
of Section 16-115 of the Public Utilities Act,
provided that the amount paid by the utility in
any year will be limited by paragraph (2) of this
subsection (d);
(ii) provide that the utility's payment

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

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

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

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carbon sequestration requirements in any given
year, provided the requisite offsets are
purchased. However, the Attorney General, on
behalf of the People of the State of Illinois, may
specifically enforce the facility's sequestration
requirement and the other terms of this contract
provision. Compliance with the sequestration
requirements and offset purchase requirements
specified in paragraph (3) of this subsection (d)
shall be reviewed annually by an independent
expert retained by the owner of the initial clean
coal facility, with the advance written approval
of the Attorney General. The Commission may, in
the course of the review specified in item (vii),
reduce the allowable return on equity for the
facility if the facility willfully fails to comply
with the carbon capture and sequestration
requirements set forth in this item (v);
(vi) include limits on, and accordingly
provide for modification of, the amount the
utility is required to source under the sourcing
agreement consistent with paragraph (2) of this
subsection (d);
(vii) require Commission review: (1) to
determine the justness, reasonableness, and
prudence of the inputs to the formula referenced

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

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initial clean coal facility, which is the
counterparty to such sourcing agreement, shall
have the right from time to time to elect whether
the obligations of the utility party thereto shall
be governed by the power purchase provisions or
the contract for differences provisions;
(xi) append documentation showing that the
formula rate and contract, insofar as they relate
to the power purchase provisions, have been
approved by the Federal Energy Regulatory
Commission pursuant to Section 205 of the Federal
Power Act;
(xii) provide that any changes to the terms of
the contract, insofar as such changes relate to
the power purchase provisions, are subject to
review under the public interest standard applied
by the Federal Energy Regulatory Commission
pursuant to Sections 205 and 206 of the Federal
Power Act; and
(xiii) conform with customary lender
requirements in power purchase agreements used as
the basis for financing non-utility generators.
(4) Effective date of sourcing agreements with the
initial clean coal facility. Any proposed sourcing
agreement with the initial clean coal facility shall not
become effective unless the following reports are prepared

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

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likelihood that the initial clean coal facility will
commence commercial operation by and be delivering
power to the facility's busbar by 2016. To assist in
the preparation of its report, the Commission, in
consultation with the Agency, may hire one or more
experts or consultants, the costs of which shall be
paid for by the owner of the initial clean coal
facility. The Commission and Agency may begin the
process of selecting such experts or consultants prior
to receipt of the facility cost report.
(iii) General Assembly approval. The proposed
sourcing agreements shall not take effect unless,
based on the facility cost report and the Commission's
report, the General Assembly enacts authorizing
legislation approving (A) the projected price, stated
in cents per kilowatthour, to be charged for
electricity generated by the initial clean coal
facility, (B) the projected impact on residential and
small business customers' bills over the life of the
sourcing agreements, and (C) the maximum allowable
return on equity for the project; and
(iv) Commission review. If the General Assembly
enacts authorizing legislation pursuant to
subparagraph (iii) approving a sourcing agreement, the
Commission shall, within 90 days of such enactment,
complete a review of such sourcing agreement. During

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such time period, the Commission shall implement any
directive of the General Assembly, resolve any
disputes between the parties to the sourcing agreement
concerning the terms of such agreement, approve the
form of such agreement, and issue an order finding
that the sourcing agreement is prudent and reasonable.
The facility cost report shall be prepared as follows:
(A) The facility cost report shall be prepared by
duly licensed engineering and construction firms
detailing the estimated capital costs payable to one
or more contractors or suppliers for the engineering,
procurement and construction of the components
comprising the initial clean coal facility and the
estimated costs of operation and maintenance of the
facility. The facility cost report shall include:
(i) an estimate of the capital cost of the
core plant based on one or more front end
engineering and design studies for the
gasification island and related facilities. The
core plant shall include all civil, structural,
mechanical, electrical, control, and safety
systems.
(ii) an estimate of the capital cost of the
balance of the plant, including any capital costs
associated with sequestration of carbon dioxide
emissions and all interconnects and interfaces

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

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

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

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

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

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

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

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

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hours of such 12-month period at the PJM
Interconnection LLC Northern Illinois Hub, (bb)
50% multiplied by the Base Residual Auction, or
its successor, capacity price for the rest of the
RTO zone group determined by PJM Interconnection
LLC, divided by 24 hours per day, and (cc) 50%
multiplied by the Planning Resource Auction, or
its successor, capacity price for Zone 4
determined by the Midcontinent Independent System
Operator, Inc., divided by 24 hours per day.
(iii) Market price index: The market price
index for a delivery year shall be the sum of
projected energy prices and projected capacity
prices determined as follows:
(aa) Projected energy prices: the
projected energy prices for the applicable
delivery year shall be calculated once for the
year using the forward market price for the
PJM Interconnection, LLC Northern Illinois
Hub. The forward market price shall be
calculated as follows: the energy forward
prices for each month of the applicable
delivery year averaged for each trade date
during the calendar year immediately preceding
that delivery year to produce a single energy
forward price for the delivery year. The

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forward market price calculation shall use
data published by the Intercontinental
Exchange, or its successor.
(bb) Projected capacity prices:
(I) For the delivery years commencing
June 1, 2017, June 1, 2018, and June 1,
2019, the projected capacity price shall
be equal to the sum of (1) 50% multiplied
by the Base Residual Auction, or its
successor, price for the rest of the RTO
zone group as determined by PJM
Interconnection LLC, divided by 24 hours
per day and, (2) 50% multiplied by the
resource auction price determined in the
resource auction administered by the
Midcontinent Independent System Operator,
Inc., in which the largest percentage of
load cleared for Local Resource Zone 4,
divided by 24 hours per day, and where
such price is determined by the
Midcontinent Independent System Operator,
Inc.
(II) For the delivery year commencing
June 1, 2020, and each year thereafter,
the projected capacity price shall be
equal to the sum of (1) 50% multiplied by

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

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

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

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

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

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

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

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

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the Nuclear Regulatory Commission terminates the
resource's license.
(F) If the zero emission facility elects to
terminate a contract under subparagraph (E) of this
paragraph (1), then the Commission shall reopen the
docket in which the Commission approved the zero
emission standard procurement plan under subparagraph
(C) of this paragraph (1) and, after notice and
hearing, enter an order acknowledging the contract
termination election if such termination is consistent
with the provisions of this subsection (d-5).
(2) For purposes of this subsection (d-5), the amount
paid per kilowatthour means the total amount paid for
electric service expressed on a per kilowatthour basis.
For purposes of this subsection (d-5), the total amount
paid for electric service includes, without limitation,
amounts paid for supply, transmission, distribution,
surcharges, and add-on taxes.
Notwithstanding the requirements of this subsection
(d-5), the contracts executed under this subsection (d-5)
shall provide that the total of zero emission credits
procured under a procurement plan shall be subject to the
limitations of this paragraph (2). For each delivery year,
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

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

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

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

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(4) Cost-effective zero emission credits procured from
zero emission facilities shall satisfy the applicable
definitions set forth in Section 1-10 of this Act.
(5) The electric utility shall retire all zero
emission credits used to comply with the requirements of
this subsection (d-5).
(6) Electric utilities shall be entitled to recover
all of the costs associated with the procurement of zero
emission credits through an automatic adjustment clause
tariff in accordance with subsection (k) and (m) of
Section 16-108 of the Public Utilities Act, and the
contracts executed under this subsection (d-5) shall
provide that the utilities' payment obligations under such
contracts shall be reduced if an adjustment is required
under subsection (m) of Section 16-108 of the Public
Utilities Act.
(7) This subsection (d-5) shall become inoperative on
January 1, 2028.
(d-10) Nuclear Plant Assistance; carbon mitigation
credits.
(1) The General Assembly finds:
(A) The health, welfare, and prosperity of all
Illinois citizens require that the State of Illinois act
to avoid and not increase carbon emissions from electric
generation sources while continuing to ensure affordable,
stable, and reliable electricity to all citizens.

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

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

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protection cap that have been evaluated through an independent
audit of a carbon-free energy resource conducted by the
Environmental Protection Agency that evaluated projected
annual costs for operation and maintenance expenses; fully
allocated overhead costs, which shall be allocated using the
methodology developed by the Institute for Nuclear Power
Operations; fuel expenditures; nonfuel capital expenditures;
spent fuel expenditures; a return on working capital; the cost
of operational and market risks that could be avoided by
ceasing operation; and any other costs necessary for continued
operations, provided that "necessary" means, for purposes of
this definition, that the costs could reasonably be avoided
only by ceasing operations of the carbon-free energy resource.
"Carbon mitigation credit" means a tradable credit that
represents the carbon emission reduction attributes of one
megawatt-hour of energy produced from a carbon-free energy
resource.
"Carbon-free energy resource" means a generation facility
that: (1) is fueled by nuclear power; and (2) is
interconnected to PJM Interconnection, LLC.
(3) Procurement.
(A) Beginning with the delivery year commencing on
June 1, 2022, the Agency shall, for electric utilities
serving at least 3,000,000 retail customers in the State,
seek to procure contracts for no more than approximately
54,500,000 cost-effective carbon mitigation credits from

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carbon-free energy resources because such credits are
necessary to support current levels of carbon-free energy
generation and ensure the State meets its carbon dioxide
emissions reduction goals. The Agency shall not make a
partial award of a contract for carbon mitigation credits
covering a fractional amount of a carbon-free energy
resource's projected output.
(B) Each carbon-free energy resource that intends to
participate in a procurement shall be required to submit
to the Agency the following information for the resource
on or before the date established by the Agency:
(i) the in-service date and remaining useful life
of the carbon-free energy resource;
(ii) the amount of power generated annually for
each of the past 10 years, which shall be used to
determine the capability of each facility;
(iii) a commitment to be reflected in any contract
entered into pursuant to this subsection (d-10) to
continue operating the carbon-free energy resource at
a capacity factor of at least 88% annually on average
for the duration of the contract or contracts executed
under the procurement held under this subsection
(d-10), except in an instance described in
subparagraph (E) of paragraph (1) of subsection (d-5)
of this Section or made impracticable as a result of
compliance with law or regulation;

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

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

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

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

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to the contract shall multiply such net value by the
applicable contract quantity and remit such amount to
the electric utility counterparty. The electric
utility shall reflect such amounts remitted by
suppliers as a credit on its retail customer bills as
soon as practicable.
(iv) To ensure that retail customers in Northern
Illinois do not pay more for carbon mitigation credits
than the value such credits provide, and
notwithstanding the provisions of this subsection
(d-10), the Agency shall not accept bids for contracts
that exceed a customer protection cap equal to the
baseline costs of carbon-free energy resources.
The baseline costs for the applicable year shall
be the following:
(I) For the delivery year beginning June 1,
2022, the baseline costs shall be an amount equal
to $30.30 per megawatt-hour.
(II) For the delivery year beginning June 1,
2023, the baseline costs shall be an amount equal
to $32.50 per megawatt-hour.
(III) For the delivery year beginning June 1,
2024, the baseline costs shall be an amount equal
to $33.43 per megawatt-hour.
(IV) For the delivery year beginning June 1,
2025, the baseline costs shall be an amount equal

SB3598 - 169 - LRB103 38719 CES 68856 b
to $33.50 per megawatt-hour.
(V) For the delivery year beginning June 1,
2026, the baseline costs shall be an amount equal
to $34.50 per megawatt-hour.
An Environmental Protection Agency consultant
forecast, included in a report issued April 14, 2021,
projects that a carbon-free energy resource has the
opportunity to earn on average approximately $30.28
per megawatt-hour, for the sale of energy and capacity
during the time period between 2022 and 2027.
Therefore, the sale of carbon mitigation credits
provides the opportunity to receive an additional
amount per megawatt-hour in addition to the projected
prices for energy and capacity.
Although actual energy and capacity prices may
vary from year-to-year, the General Assembly finds
that this customer protection cap will help ensure
that the cost of carbon mitigation credits will be
less than its value, based upon the social cost of
carbon identified in the Technical Support Document
issued in February 2021 by the U.S. Interagency
Working Group on Social Cost of Greenhouse Gases and
the PJM Interconnection, LLC carbon dioxide marginal
emission rate for 2020, and that a carbon-free energy
resource receiving payment for carbon mitigation
credits receives no more than necessary to keep those

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

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bidders make commercially reasonable efforts to apply for
federal tax credits, direct payments, or similar subsidy
programs that support carbon-free generation and for which
the successful bidder is eligible. Upon publishing of the
carbon mitigation credit procurement plan, copies of the
plan shall be posted and made publicly available on the
Agency's website. All interested parties shall have 7 days
following the date of posting to provide comment to the
Agency on the plan. All comments shall be posted to the
Agency's website. Following the end of the comment period,
but no more than 19 days later than the effective date of
this amendatory Act of the 102nd General Assembly, the
Agency shall revise the plan as necessary based on the
comments received and file its carbon mitigation credit
procurement plan with the Commission.
(E) If the Commission determines that the plan is
likely to result in the procurement of cost-effective
carbon mitigation credits, then the Commission shall,
after notice and hearing and opportunity for comment, but
no later than 42 days after the Agency filed the plan,
approve the plan or approve it with modification. For
purposes of this subsection (d-10), "cost-effective" means
carbon mitigation credits that are procured from
carbon-free energy resources at prices that are within the
limits specified in this paragraph (3). As part of the
Commission's review and acceptance or rejection of the

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

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

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

SB3598 - 175 - LRB103 38719 CES 68856 b
procurement plan for the utility.
(h) The Agency shall assess fees to each bidder to recover
the costs incurred in connection with a competitive
procurement process.
(i) A renewable energy credit, carbon emission credit,
zero emission credit, or carbon mitigation credit can only be
used once to comply with a single portfolio or other standard
as set forth in subsection (c), subsection (d), or subsection
(d-5) of this Section, respectively. A renewable energy
credit, carbon emission credit, zero emission credit, or
carbon mitigation credit cannot be used to satisfy the
requirements of more than one standard. If more than one type
of credit is issued for the same megawatt hour of energy, only
one credit can be used to satisfy the requirements of a single
standard. After such use, the credit must be retired together
with any other credits issued for the same megawatt hour of
energy.
(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
103-580, eff. 12-8-23.)
(20 ILCS 3855/1-93 new)
Sec. 1-93. Energy storage contracts.
(a) The Agency shall develop a storage procurement plan
that results in the electric utilities contracting for energy
storage resources in the following amounts:
(1) at least 1,000 megawatts of cumulative energy

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storage capacity by the end of delivery year 2024;
(2) at least 3,000 megawatts of cumulative energy
storage capacity by delivery year 2026;
(3) at least 5,000 megawatts of cumulative energy
storage capacity by delivery year 2028; and
(4) at least 7,500 megawatts of cumulative energy
storage capacity by delivery year 2030.
The storage procurement plan shall require that for each
delivery year, at least 25% of the cumulative energy storage
capacity contracted for by the electric utilities shall be
from owners of existing or retired fossil-fueled power plants.
(b) Within 90 days after the effective date of this
amendatory Act of the 103rd General Assembly, the Agency shall
develop an energy storage procurement plan in accordance with
this Section and Section 16-111.5 of the Public Utilities Act.
The energy storage procurement plan shall further require
that, in order to qualify, the owner or owners of the energy
storage resources must have entered into a project labor
agreement for the construction of the energy storage resource
and certify that not less than the prevailing wage, as
determined by the Illinois Prevailing Wage Act, was or will be
paid to employees who are engaged in construction activities
associated with the energy storage resource. Additionally, if
the owner or owners of the energy storage resources own
existing or retired fossil-fueled power plants, the owner or
owners shall commit to (1) provide a job training and

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education program to existing and former employees at
fossil-fueled power plants who are or were members of a labor
union to provide the requisite skills, knowledge, and training
required to operate and maintain energy storage resources; and
(2) create employment opportunities for persons who graduate
from that job training and education program.
(c) No later than December 31, 2026 and every 2 years
thereafter, the Agency shall conduct an analysis to determine
whether the contracted quantity of energy storage in energy
storage capacity and energy storage duration is sufficient to
support the State's renewable energy standards and carbon
emission standards. To conduct the analysis, the Agency shall
retain an independent consultant with experience in wholesale
electric system modeling in PJM and MISO and may seek the
support of the federal Department of Energy and National Labs
to conduct its analysis. The independent consultant shall
utilize a production cost model, capacity expansion model, or
similar comprehensive analysis of the electricity systems and
shall provide opportunities for stakeholders to provide
feedback on the scope, inputs, and assumptions used in the
analysis. The Agency is authorized to collect costs for
conducting the analysis from electric utilities. The electric
utilities are authorized to recover the cost of the analysis
as part of the recovery of the cost of energy storage
contracts, as authorized in this Section and Section 16-108 of
the Public Utilities Act. If the Agency determines that the

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need for energy storage capacity or energy storage duration is
greater than the energy storage resources procured pursuant to
this Section, the Agency shall establish and the Commission
shall approve new energy storage resources targets to meet the
identified need. If the Agency determines that deployment of
energy storage beyond 2030 will not be achieved through
wholesale market prices and other energy storage programs
established by the State, the Agency shall establish
additional targets for years beyond 2030.
Section 99. Effective date. This Act takes effect upon
becoming law.
SB3598 - 179 - LRB103 38719 CES 68856 b
INDEX
Statutes amended in order of appearance