Bill Text: IL HB3446 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Provides that the amendatory Act may be referred to as the Coal to Solar and Energy Storage Act. Amends the Illinois Power Agency Act, the State Finance Act, and the Public Utilities Act. Authorizes the procurement of renewable energy credits by electric utilities serving more than 300,000 retail customers as of January 1, 2019. Provides for the renewable energy credits to be related to new renewable energy resources installed at the site of electric generation that on January 1, 2019 burned coal as the primary fuel source. Provides for the Illinois Power Agency to manage the procurement of the credits. Establishes the requirements for eligibility for the credits. Requires the electric utilities to file a tariff for the billing and collection of a Coal to Solar and Energy Storage Initiative Charge on each kilowatthour of electricity delivered to its delivery services customers within its service territory at specified rates and to deposit a percentage of its collections in the Coal to Solar and Energy Storage Incentive and Plant Transition Fund. Establishes the Coal to Solar and Energy Storage Incentive and Plant Transition Fund as a special fund in the State treasury to provide transitional support funding to coal-fueled electric utilities participating in the utilization of the renewable energy credits. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced - Dead) 2021-04-23 - Rule 19(a) / Re-referred to Rules Committee [HB3446 Detail]

Download: Illinois-2021-HB3446-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB3446 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
20 ILCS 3855/1-20
20 ILCS 3855/1-75
30 ILCS 105/5.935 new
220 ILCS 5/16-108
220 ILCS 5/16-111.5
Provides that the amendatory Act may be referred to as the Coal to Solar and Energy Storage Act. Amends the Illinois Power Agency Act, the State Finance Act, and the Public Utilities Act. Authorizes the procurement of renewable energy credits by electric utilities serving more than 300,000 retail customers as of January 1, 2019. Provides for the renewable energy credits to be related to new renewable energy resources installed at the site of electric generation that on January 1, 2019 burned coal as the primary fuel source. Provides for the Illinois Power Agency to manage the procurement of the credits. Establishes the requirements for eligibility for the credits. Requires the electric utilities to file a tariff for the billing and collection of a Coal to Solar and Energy Storage Initiative Charge on each kilowatthour of electricity delivered to its delivery services customers within its service territory at specified rates and to deposit a percentage of its collections in the Coal to Solar and Energy Storage Incentive and Plant Transition Fund. Establishes the Coal to Solar and Energy Storage Incentive and Plant Transition Fund as a special fund in the State treasury to provide transitional support funding to coal-fueled electric utilities participating in the utilization of the renewable energy credits. Effective immediately.
LRB102 16951 SPS 22368 b
A BILL FOR
HB3446 LRB102 16951 SPS 22368 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. This Act may be referred to as the Coal to Solar
and Energy Storage Act.
Section 5. Legislative findings. The General Assembly
finds and declares:
(1) The overall objectives of regulation of the
electric utility industry in this State, as expressed by
the General Assembly in the Illinois Power Agency Act and
the Public Utilities Act, include the provision of
adequate, efficient, reliable, environmentally safe, and
least-cost utility services at prices that accurately
reflect the long-term cost of such services and that are
equitable to all citizens.
(2) For many years, a significant portion of the
electricity consumed by consumers and businesses in this
State, particularly in the downstate region of this State,
has been produced by large coal-fueled electric generating
stations located in the downstate region. Further, these
electric generating stations are typically available to
provide electricity to serve the demands of retail
customers 24 hours per day, 7 days per week, without

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regard to inherently intermittent natural conditions such
as wind speeds or the hours in which solar energy is
available.
(3) In recent years, the prices for electric
generating capacity and electric energy available to
coal-fueled electric generating stations located in the
downstate region of this State have been insufficient to
enable some electric generating facilities located within
the downstate region to remain in operation, and has
placed other electric generating stations in the downstate
region at economic risk of closure. Changes in
environmental regulations have also contributed to the
retirement of coal-fueled generating stations in the
downstate region.
(4) Between 2015 and 2021, more than 4,300 megawatts
of electric generating facilities located in Load Zone 4
of the Midcontinent Independent System Operator, Inc. in
downstate Illinois have been permanently retired,
rendering this capacity unavailable to serve the demands
of Illinois electricity consumers. Additional electric
generating capacity in this downstate region has been
announced for retirement by no later than 2027, with
approximately 580 megawatts to be retired by the end of
2022, 170 megawatts to be retired by end of 2023, 2,520
megawatts announced for retirement no later than the end
of 2025, and 615 megawatts announced for retirement by the

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end of 2027, resulting in a total of almost 8,200
megawatts of coal-fueled electric generating capacity in
this downstate region that has recently been retired or
announced for retirement by no later than 2027. It is
estimated that of the 2,520 megawatts of generating
capacity announced for retirement by the end of 2025,
approximately 2,200 megawatts of generating capacity
located in this downstate region is currently at
significant risk of retirement as soon as the end of 2022,
without additional revenues or transition support, in
light of prevailing low prices for electric generating
capacity and electric energy in Load Zone 4 of the
Midcontinent Independent System Operator, Inc., or due to
recently enacted or adopted environmental regulations.
Further, an additional 1,108 megawatts of coal-fueled
electric generating capacity that is located in the
downstate region but is interconnected with the ComEd Zone
of the PJM Interconnection, LLC has been announced for
retirement by the end of 2027. In short, a vast majority of
the coal-fueled generation located in the downstate region
has been recently retired or will be retired by no later
than the end of 2027.
(5) To a significant extent, as the existing bulk
power system is presently configured, electricity, when
generated, cannot yet be stored for future use in any
significant amount relative to the total amount of

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electricity that existing generating facilities can
produce. Rather, for the most part, electricity must be
generated instantaneously at the time and in the amount
that it is demanded by residential and business consumers.
This characteristic of the existing bulk power system is
unlikely to change significantly in the near term. The
development of energy storage facilities provides some
opportunity to store some amounts of electricity for use
at later times. However, energy storage facilities with
sufficient capacity to deliver electricity to meet the
demands of consumers within each load zone in this State,
24 hours per day, 7 days per week on every day of the year,
have not yet been built.
(6) Reliable electric service at all times is
essential to the functioning of a modern economy and of
society in general. The health, welfare, and prosperity of
Illinois citizens, including the attractiveness of the
State of Illinois to business and industry, requires the
availability of sufficient electric generating capacity,
including energy storage capacity, to meet the demands of
consumers and businesses in this State at all times. In
fact, during the COVID-19 crisis, electric generating
facilities in Illinois, including those scheduled for
retirement, have been declared essential services and the
employees at these facilities declared essential employees
who have gallantly answered the call of duty to continue

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providing reliable electric service in the face of the
pandemic threat.
(7) In the near term, there is uncertainty as to the
sufficiency of electric generating resources to reliably
serve the electric capacity and energy needs of
residential and business electricity customers in the
downstate region, particularly in light of the additional
amounts of coal-fueled electric generating resources in
the downstate region that are economically at risk and may
retire in the near future. Both the Midcontinent
Independent System Operator, Inc., which is the
independent transmission system operator for downstate
Illinois, and its Independent Market Monitor, have
expressed concerns about the sufficiency of electric
generating resources in downstate Illinois over the next
several years, due primarily to the possibility of
retirements of coal-fueled electric generating facilities
and concerns about how quickly and extensively new wind
and solar generating facilities will be placed into
service. These concerns were originally expressed by these
organizations prior to the announcements in 2019 of
additional retirements of electric generating plants with
more than 2,600 megawatts of capacity in the downstate
region and subsequent announcements of the scheduled
retirements of additional electric generating facilities
in the downstate region. Concerns have also been

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expressed, based on the intermittent nature of wind and
solar generating facilities, as to whether the grid can
operate reliably without sufficient dispatchable
generation resources or significant additions of energy
storage facilities to balance the output of renewable
generating facilities. Other commentators have stated that
such concerns about resource adequacy in downstate
Illinois are overstated. However, the General Assembly
believes that the State cannot afford to find itself in a
situation of insufficient electric generating resources to
meet the needs of Illinois residential and business
consumers.
(8) Consistent with the overall objectives of the
regulation of the electric utility industry in this State,
regulation should ensure that sufficient generating
capacity resources, including energy storage resources,
are available on both a short-term basis and a long-term
basis to enable the electric utility grid to meet the
demands of Illinois electricity consumers at all times.
(9) Through previous enactments beginning in 1997, the
General Assembly has mandated that electric utilities and
other load-serving entities in this State obtain specified
portions of the electric energy needed to serve their
retail loads in this State through the procurement of
electricity or renewable energy credits from renewable
energy resources, among other means through procurement

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events managed and supervised by the Illinois Power
Agency.
(10) Correspondingly, through previous enactments
beginning in 2007, the General Assembly has provided
incentives for the construction and operation of wind,
solar, and other types of renewable energy resources to
serve load in Illinois, and has mandated the imposition of
charges to retail customers, subject to caps, to fund the
procurement of electricity and renewable energy credits
from such facilities. In such enactments, the General
Assembly has recognized that providing opportunities to
enter into long-term contracts for the purchase of
electricity and renewable energy credits from renewable
energy resources creates incentives, and in fact is
necessary, for the construction and operation of such
resources. Developers typically will not and cannot,
financially, develop new, large-scale renewable energy
generating resources without having secured long-term
contracts for the electricity output and renewable energy
credits of the new facilities.
(11) The permitting and siting of new wind and solar
generating resources in Illinois are subject to local
governmental control, rather than State control, and in
many areas of this State, there has been strong opposition
to the siting and construction of new utility-scale wind
and solar generating resources, which in turn has resulted

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in the denial of, or withdrawal of requests for, necessary
approvals for some projects and the enactment of local
zoning ordinances imposing requirements and restrictions
that increase the costs and reduce the economic
attractiveness of such projects. This has resulted in the
delay or cancellation of a number of new renewable energy
resource projects.
(12) In light of the intermittent nature of many types
of renewable energy resources, such as wind and solar
generation resources, the installation and operation of
electricity storage facilities in conjunction with the
installation and operation of renewable generation
resources can enhance the value of renewable energy
resources to the electric grid, particularly as a reliable
source of electric capacity as well as electric energy.
(13) Through legislation enacted in 2016, the General
Assembly, through the program commonly referred to as the
zero emission credit program, has provided for the
continued economic viability of certain
economically-challenged nuclear generating facilities in
Illinois that are also significant employers and
taxpayers. Certain Illinois electric utilities are
required to purchase specified amounts of zero emission
credits from these nuclear generating facilities, with
such purchases to be funded through an additional charge
to the electric utilities' retail customers as specified

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in the legislation.
(14) The sites of many of the large coal-fueled
electric generating stations located in the downstate
region of this State that have recently been retired or
are at risk of retirement in the near term have existing
infrastructure and other characteristics that make them
suitable potential sites for development of new renewable
energy generating resources and electricity storage
resources. This infrastructure and other characteristics
include large amounts of available land situated at a
suitable distance from populated areas, suitable levels of
exposure to sunlight, and high voltage interconnections to
the bulk electric system transmission grid at strategic
locations. Development of these generating plant sites for
large-scale renewable energy generating resources and
electricity storage resources can help advance this
State's objective of increasing the portion of the State's
total electricity usage that is supplied by zero emission
resources, while supporting the reliability of electric
service in the downstate region. Further, development of
these generating plant sites for large-scale renewable
energy generating resources and electricity storage
resources can provide employment, local economic activity,
and tax base for the nearby communities, offsetting, at
least in part, the reduction in employment, economic
activity, and tax revenues resulting from the retirement

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of nearby coal-fueled electric generating stations.
Accordingly, the General Assembly finds that it is in the
public interest to encourage the redevelopment of the
sites of retired and to-be retired coal-fueled electric
generating stations as locations for renewable energy
generating resources and electricity storage resources.
(15) The General Assembly finds that it is appropriate
for the State of Illinois to establish a program to
provide for incentives for the installation and operation
of new renewable energy resources, along with energy
storage resources, at the sites of retired and at-risk
coal-fueled electric generating facilities in the
downstate region of this State, to provide incentives for
continued operation, in the near term, of the remaining
coal-fueled generating facilities in the downstate region
to ensure the availability of sufficient electric capacity
and energy resources to meet the demands of residential
and business electricity consumers in the downstate region
as well as in the State as a whole, while at the same time
also providing incentives for the transition to retirement
of some additional portion of the coal-fueled electric
generating facilities in the downstate region.
Section 10. The Illinois Power Agency Act is amended by
changing Sections 1-20 and 1-75 as follows:

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(20 ILCS 3855/1-20)
Sec. 1-20. General powers of the Agency.
(a) The Agency is authorized to do each of the following:
(1) Develop electricity procurement plans to ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability, for electric utilities that on December
31, 2005 provided electric service to at least 100,000
customers in Illinois and for small multi-jurisdictional
electric utilities that (A) on December 31, 2005 served
less than 100,000 customers in Illinois and (B) request a
procurement plan for their Illinois jurisdictional load.
Except as provided in paragraph (1.5) of this subsection
(a), the electricity procurement plans shall be updated on
an annual basis and shall include electricity generated
from renewable resources sufficient to achieve the
standards specified in this Act. Beginning with the
delivery year commencing June 1, 2017, develop procurement
plans to include zero emission credits generated from zero
emission facilities sufficient to achieve the standards
specified in this Act.
(1.5) Develop a long-term renewable resources
procurement plan in accordance with subsection (c) of
Section 1-75 of this Act for renewable energy credits in
amounts sufficient to achieve the standards specified in

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this Act for delivery years commencing June 1, 2017 and
for the programs and renewable energy credits specified in
Section 1-56 of this Act. Electricity procurement plans
for delivery years commencing after May 31, 2017, shall
not include procurement of renewable energy resources.
(2) Conduct competitive procurement processes to
procure the supply resources identified in the electricity
procurement plan, pursuant to Section 16-111.5 of the
Public Utilities Act, and, for the delivery year
commencing June 1, 2017, conduct procurement processes to
procure zero emission credits from zero emission
facilities, under subsection (d-5) of Section 1-75 of this
Act.
(2.5) Beginning with the procurement for the 2017
delivery year, conduct competitive procurement processes
and implement programs to procure renewable energy credits
identified in the long-term renewable resources
procurement plan developed and approved under subsection
(c) of Section 1-75 of this Act and Section 16-111.5 of the
Public Utilities Act.
(2.10) Oversee the procurement by electric utilities
that served more than 300,000 customers in this State as
of January 1, 2019 of renewable energy credits from new
renewable energy resources to be installed, along with
energy storage resources, at or adjacent to the sites of
electric generating facilities that burned coal as their

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primary fuel source as of January 1, 2019, in accordance
with subsection (c-5) of Section 1-75 of this Act.
(3) Develop electric generation and co-generation
facilities that use indigenous coal or renewable
resources, or both, financed with bonds issued by the
Illinois Finance Authority.
(4) Supply electricity from the Agency's facilities at
cost to one or more of the following: municipal electric
systems, governmental aggregators, or rural electric
cooperatives in Illinois.
(b) Except as otherwise limited by this Act, the Agency
has all of the powers necessary or convenient to carry out the
purposes and provisions of this Act, including without
limitation, each of the following:
(1) To have a corporate seal, and to alter that seal at
pleasure, and to use it by causing it or a facsimile to be
affixed or impressed or reproduced in any other manner.
(2) To use the services of the Illinois Finance
Authority necessary to carry out the Agency's purposes.
(3) To negotiate and enter into loan agreements and
other agreements with the Illinois Finance Authority.
(4) To obtain and employ personnel and hire
consultants that are necessary to fulfill the Agency's
purposes, and to make expenditures for that purpose within
the appropriations for that purpose.
(5) To purchase, receive, take by grant, gift, devise,

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bequest, or otherwise, lease, or otherwise acquire, own,
hold, improve, employ, use, and otherwise deal in and
with, real or personal property whether tangible or
intangible, or any interest therein, within the State.
(6) To acquire real or personal property, whether
tangible or intangible, including without limitation
property rights, interests in property, franchises,
obligations, contracts, and debt and equity securities,
and to do so by the exercise of the power of eminent domain
in accordance with Section 1-21; except that any real
property acquired by the exercise of the power of eminent
domain must be located within the State.
(7) To sell, convey, lease, exchange, transfer,
abandon, or otherwise dispose of, or mortgage, pledge, or
create a security interest in, any of its assets,
properties, or any interest therein, wherever situated.
(8) To purchase, take, receive, subscribe for, or
otherwise acquire, hold, make a tender offer for, vote,
employ, sell, lend, lease, exchange, transfer, or
otherwise dispose of, mortgage, pledge, or grant a
security interest in, use, and otherwise deal in and with,
bonds and other obligations, shares, or other securities
(or interests therein) issued by others, whether engaged
in a similar or different business or activity.
(9) To make and execute agreements, contracts, and
other instruments necessary or convenient in the exercise

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of the powers and functions of the Agency under this Act,
including contracts with any person, including personal
service contracts, or with any local government, State
agency, or other entity; and all State agencies and all
local governments are authorized to enter into and do all
things necessary to perform any such agreement, contract,
or other instrument with the Agency. No such agreement,
contract, or other instrument shall exceed 40 years.
(10) To lend money, invest and reinvest its funds in
accordance with the Public Funds Investment Act, and take
and hold real and personal property as security for the
payment of funds loaned or invested.
(11) To borrow money at such rate or rates of interest
as the Agency may determine, issue its notes, bonds, or
other obligations to evidence that indebtedness, and
secure any of its obligations by mortgage or pledge of its
real or personal property, machinery, equipment,
structures, fixtures, inventories, revenues, grants, and
other funds as provided or any interest therein, wherever
situated.
(12) To enter into agreements with the Illinois
Finance Authority to issue bonds whether or not the income
therefrom is exempt from federal taxation.
(13) To procure insurance against any loss in
connection with its properties or operations in such
amount or amounts and from such insurers, including the

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federal government, as it may deem necessary or desirable,
and to pay any premiums therefor.
(14) To negotiate and enter into agreements with
trustees or receivers appointed by United States
bankruptcy courts or federal district courts or in other
proceedings involving adjustment of debts and authorize
proceedings involving adjustment of debts and authorize
legal counsel for the Agency to appear in any such
proceedings.
(15) To file a petition under Chapter 9 of Title 11 of
the United States Bankruptcy Code or take other similar
action for the adjustment of its debts.
(16) To enter into management agreements for the
operation of any of the property or facilities owned by
the Agency.
(17) To enter into an agreement to transfer and to
transfer any land, facilities, fixtures, or equipment of
the Agency to one or more municipal electric systems,
governmental aggregators, or rural electric agencies or
cooperatives, for such consideration and upon such terms
as the Agency may determine to be in the best interest of
the citizens of Illinois.
(18) To enter upon any lands and within any building
whenever in its judgment it may be necessary for the
purpose of making surveys and examinations to accomplish
any purpose authorized by this Act.

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(19) To maintain an office or offices at such place or
places in the State as it may determine.
(20) To request information, and to make any inquiry,
investigation, survey, or study that the Agency may deem
necessary to enable it effectively to carry out the
provisions of this Act.
(21) To accept and expend appropriations.
(22) To engage in any activity or operation that is
incidental to and in furtherance of efficient operation to
accomplish the Agency's purposes, including hiring
employees that the Director deems essential for the
operations of the Agency.
(23) To adopt, revise, amend, and repeal rules with
respect to its operations, properties, and facilities as
may be necessary or convenient to carry out the purposes
of this Act, subject to the provisions of the Illinois
Administrative Procedure Act and Sections 1-22 and 1-35 of
this Act.
(24) To establish and collect charges and fees as
described in this Act.
(25) To conduct competitive gasification feedstock
procurement processes to procure the feedstocks for the
clean coal SNG brownfield facility in accordance with the
requirements of Section 1-78 of this Act.
(26) To review, revise, and approve sourcing
agreements and mediate and resolve disputes between gas

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utilities and the clean coal SNG brownfield facility
pursuant to subsection (h-1) of Section 9-220 of the
Public Utilities Act.
(27) To request, review and accept proposals, execute
contracts, purchase renewable energy credits and otherwise
dedicate funds from the Illinois Power Agency Renewable
Energy Resources Fund to create and carry out the
objectives of the Illinois Solar for All program in
accordance with Section 1-56 of this Act.
(Source: P.A. 99-906, eff. 6-1-17.)
(20 ILCS 3855/1-75)
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

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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.
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

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

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

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(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
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

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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
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

HB3446 - 24 - LRB102 16951 SPS 22368 b
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. 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),

HB3446 - 25 - LRB102 16951 SPS 22368 b
the long-term renewable resources procurement plan shall
include the goals for procurement of renewable energy
credits to meet at least the following overall
percentages: 13% by the 2017 delivery year; increasing by
at least 1.5% each delivery year thereafter to at least
25% by the 2025 delivery year; and continuing at no less
than 25% for each delivery year thereafter. In the event
of a conflict between these goals and the new wind and new
photovoltaic procurement requirements described in items
(i) through (iii) of subparagraph (C) of this paragraph
(1), the long-term plan shall prioritize compliance with
the new wind and new photovoltaic procurement requirements
described in items (i) through (iii) of subparagraph (C)
of this paragraph (1) over the annual percentage targets
described in this subparagraph (B).
For the delivery year beginning June 1, 2017, the
procurement plan shall include cost-effective renewable
energy resources equal to at least 13% of each utility's
load for eligible retail customers and 13% of the
applicable portion of each utility's load for retail
customers who are not eligible retail customers, which
applicable portion shall equal 50% of the utility's load
for retail customers who are not eligible retail customers
on February 28, 2017.
For the delivery year beginning June 1, 2018, the
procurement plan shall include cost-effective renewable

HB3446 - 26 - LRB102 16951 SPS 22368 b
energy resources equal to at least 14.5% of each utility's
load for eligible retail customers and 14.5% of the
applicable portion of each utility's load for retail
customers who are not eligible retail customers, which
applicable portion shall equal 75% of the utility's load
for retail customers who are not eligible retail customers
on February 28, 2017.
For the delivery year beginning June 1, 2019, and for
each year thereafter, the procurement plans shall include
cost-effective renewable energy resources equal to a
minimum percentage of each utility's load for all retail
customers as follows: 16% by June 1, 2019; increasing by
1.5% each year thereafter to 25% by June 1, 2025; and 25%
by June 1, 2026 and each year thereafter.
For each delivery year, the Agency shall first
recognize each utility's obligations for that delivery
year under existing contracts. Any renewable energy
credits under existing contracts, including renewable
energy credits as part of renewable energy resources,
shall be used to meet the goals set forth in this
subsection (c) for the delivery year.
(C) Of the renewable energy credits procured under
this subsection (c), at least 75% shall come from wind and
photovoltaic projects. The long-term renewable resources
procurement plan described in subparagraph (A) of this
paragraph (1) shall include the procurement of renewable

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energy credits in amounts equal to at least the following:
(i) By the end of the 2020 delivery year:
At least 2,000,000 renewable energy credits
for each delivery year shall come from new wind
projects; and
At least 2,000,000 renewable energy credits
for each delivery year shall come from new
photovoltaic projects; of that amount, to the
extent possible, the Agency shall procure: at
least 50% from solar photovoltaic projects using
the program outlined in subparagraph (K) of this
paragraph (1) from distributed renewable energy
generation devices or community renewable
generation projects; at least 40% from
utility-scale solar projects; at least 2% from
brownfield site photovoltaic projects that are not
community renewable generation projects; and the
remainder shall be determined through the
long-term planning process described in
subparagraph (A) of this paragraph (1).
(ii) By the end of the 2025 delivery year:
At least 3,000,000 renewable energy credits
for each delivery year shall come from new wind
projects; and
At least 3,000,000 renewable energy credits
for each delivery year shall come from new

HB3446 - 28 - LRB102 16951 SPS 22368 b
photovoltaic projects; of that amount, to the
extent possible, the Agency shall procure: at
least 50% from solar photovoltaic projects using
the program outlined in subparagraph (K) of this
paragraph (1) from distributed renewable energy
devices or community renewable generation
projects; at least 40% from utility-scale solar
projects; at least 2% from brownfield site
photovoltaic projects that are not community
renewable generation projects; and the remainder
shall be determined through the long-term planning
process described in subparagraph (A) of this
paragraph (1).
(iii) By the end of the 2030 delivery year:
At least 4,000,000 renewable energy credits
for each delivery year shall come from new wind
projects; and
At least 4,000,000 renewable energy credits
for each delivery year shall come from new
photovoltaic projects; of that amount, to the
extent possible, the Agency shall procure: at
least 50% from solar photovoltaic projects using
the program outlined in subparagraph (K) of this
paragraph (1) from distributed renewable energy
devices or community renewable generation
projects; at least 40% from utility-scale solar

HB3446 - 29 - LRB102 16951 SPS 22368 b
projects; at least 2% from brownfield site
photovoltaic projects that are not community
renewable generation projects; and the remainder
shall be determined through the long-term planning
process described in subparagraph (A) of this
paragraph (1).
For purposes of this Section:
"New wind projects" means wind renewable
energy facilities that are energized after June 1,
2017 for the delivery year commencing June 1, 2017
or within 3 years after the date the Commission
approves contracts for subsequent delivery years.
"New photovoltaic projects" means photovoltaic
renewable energy facilities that are energized
after June 1, 2017. Photovoltaic projects
developed under Section 1-56 of this Act shall not
apply towards the new photovoltaic project
requirements in this subparagraph (C).
(D) Renewable energy credits shall be cost effective.
For purposes of this subsection (c), "cost effective"
means that the costs of procuring renewable energy
resources do not cause the limit stated in subparagraph
(E) of this paragraph (1) to be exceeded and, for
renewable energy credits procured through a competitive
procurement event, do not exceed benchmarks based on
market prices for like products in the region. For

HB3446 - 30 - LRB102 16951 SPS 22368 b
purposes of this subsection (c), "like products" means
contracts for renewable energy credits from the same or
substantially similar technology, same or substantially
similar vintage (new or existing), the same or
substantially similar quantity, and the same or
substantially similar contract length and structure.
Benchmarks shall be developed by the procurement
administrator, in consultation with the Commission staff,
Agency staff, and the procurement monitor and shall be
subject to Commission review and approval. If price
benchmarks for like products in the region are not
available, the procurement administrator shall establish
price benchmarks based on publicly available data on
regional technology costs and expected current and future
regional energy prices. The benchmarks in this Section
shall not be used to curtail or otherwise reduce
contractual obligations entered into by or through the
Agency prior to June 1, 2017 (the effective date of Public
Act 99-906).
(E) For purposes of this subsection (c), the required
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

HB3446 - 31 - LRB102 16951 SPS 22368 b
delivery years commencing on and after June 1, 2017, the
required procurement of cost-effective renewable energy
resources for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) delivered by the electric utility in the
delivery year ending immediately prior to the procurement,
to all retail customers in its service territory. For
purposes of this subsection (c), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For
purposes of this subsection (c), the total amount paid for
electric service includes without limitation amounts paid
for supply, transmission, distribution, surcharges, and
add-on taxes.
Notwithstanding the requirements of this subsection
(c), the total of renewable energy resources procured
under the procurement plan for any single year shall be
subject to the limitations of this subparagraph (E). Such
procurement shall be reduced for all retail customers
based on the amount necessary to limit the annual
estimated average net increase due to the costs of these
resources included in the amounts paid by eligible retail
customers in connection with electric service to no more
than the greater of 2.015% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2007 or the incremental amount per kilowatthour paid

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for these resources in 2011. To arrive at a maximum dollar
amount of renewable energy resources to be procured for
the particular delivery year, the resulting per
kilowatthour amount shall be applied to the actual amount
of kilowatthours of electricity delivered, or applicable
portion of such amount as specified in paragraph (1) of
this subsection (c), as applicable, by the electric
utility in the delivery year immediately prior to the
procurement to all retail customers in its service
territory. The calculations required by this subparagraph
(E) shall be made only once for each delivery year at the
time that the renewable energy resources are procured.
Once the determination as to the amount of renewable
energy resources to procure is made based on the
calculations set forth in this subparagraph (E) and the
contracts procuring those amounts are executed, no
subsequent rate impact determinations shall be made and no
adjustments to those contract amounts shall be allowed.
All costs incurred under such contracts shall be fully
recoverable by the electric utility as provided in this
Section.
(F) If the limitation on the amount of renewable
energy resources procured in subparagraph (E) of this
paragraph (1) prevents the Agency from meeting all of the
goals in this subsection (c), the Agency's long-term plan
shall prioritize compliance with the requirements of this

HB3446 - 33 - LRB102 16951 SPS 22368 b
subsection (c) regarding renewable energy credits in the
following order:
(i) renewable energy credits under existing
contractual obligations;
(i-5) funding for the Illinois Solar for All
Program, as described in subparagraph (O) of this
paragraph (1);
(ii) renewable energy credits necessary to comply
with the new wind and new photovoltaic procurement
requirements described in items (i) through (iii) of
subparagraph (C) of this paragraph (1); and
(iii) renewable energy credits necessary to meet
the remaining requirements of this subsection (c).
(G) The following provisions shall apply to the
Agency's procurement of renewable energy credits under
this subsection (c):
(i) Notwithstanding whether a long-term renewable
resources procurement plan has been approved, the
Agency shall conduct an initial forward procurement
for renewable energy credits from new utility-scale
wind projects within 160 days after June 1, 2017 (the
effective date of Public Act 99-906). For the purposes
of this initial forward procurement, the Agency shall
solicit 15-year contracts for delivery of 1,000,000
renewable energy credits delivered annually from new
utility-scale wind projects to begin delivery on June

HB3446 - 34 - LRB102 16951 SPS 22368 b
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
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,

HB3446 - 35 - LRB102 16951 SPS 22368 b
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) Subsequent forward procurements for
utility-scale wind projects shall solicit at least
1,000,000 renewable energy credits delivered annually
per procurement event and shall be planned, scheduled,
and designed such that the cumulative amount of
renewable energy credits delivered from all new wind
projects in each delivery year shall not exceed the
Agency's projection of the cumulative amount of
renewable energy credits that will be delivered from
all new photovoltaic projects, including utility-scale
and distributed photovoltaic devices, in the same
delivery year at the time scheduled for wind contract

HB3446 - 36 - LRB102 16951 SPS 22368 b
delivery.
(iv) If, at any time after the time set for
delivery of renewable energy credits pursuant to the
initial procurements in items (i) and (ii) of this
subparagraph (G), the cumulative amount of renewable
energy credits projected to be delivered from all new
wind projects in a given delivery year exceeds the
cumulative amount of renewable energy credits
projected to be delivered from all new photovoltaic
projects in that delivery year by 200,000 or more
renewable energy credits, then the Agency shall within
60 days adjust the procurement programs in the
long-term renewable resources procurement plan to
ensure that the projected cumulative amount of
renewable energy credits to be delivered from all new
wind projects does not exceed the projected cumulative
amount of renewable energy credits to be delivered
from all new photovoltaic projects by 200,000 or more
renewable energy credits, provided that nothing in
this Section shall preclude the projected cumulative
amount of renewable energy credits to be delivered
from all new photovoltaic projects from exceeding the
projected cumulative amount of renewable energy
credits to be delivered from all new wind projects in
each delivery year and provided further that nothing
in this item (iv) shall require the curtailment of an

HB3446 - 37 - LRB102 16951 SPS 22368 b
executed contract. The Agency shall update, on a
quarterly basis, its projection of the renewable
energy credits to be delivered from all projects in
each delivery year. Notwithstanding anything to the
contrary, the Agency may adjust the timing of
procurement events conducted under this subparagraph
(G). The long-term renewable resources procurement
plan shall set forth the process by which the
adjustments may be made.
(v) All procurements under this subparagraph (G)
shall comply with the geographic requirements in
subparagraph (I) of this paragraph (1) and shall
follow the procurement processes and procedures
described in this Section and Section 16-111.5 of the
Public Utilities Act to the extent practicable, and
these processes and procedures may be expedited to
accommodate the schedule established by this
subparagraph (G).
(H) The procurement of renewable energy resources for
a given delivery year shall be reduced as described in
this subparagraph (H) if an alternative retail electric
supplier meets the requirements described in this
subparagraph (H).
(i) Within 45 days after June 1, 2017 (the
effective date of Public Act 99-906), an alternative
retail electric supplier or its successor shall submit

HB3446 - 38 - LRB102 16951 SPS 22368 b
an informational filing to the Illinois Commerce
Commission certifying that, as of December 31, 2015,
the alternative retail electric supplier owned one or
more electric generating facilities that generates
renewable energy resources as defined in Section 1-10
of this Act, provided that such facilities are not
powered by wind or photovoltaics, and the facilities
generate one renewable energy credit for each
megawatthour of energy produced from the facility.
The informational filing shall identify each
facility that was eligible to satisfy the alternative
retail electric supplier's obligations under Section
16-115D of the Public Utilities Act as described in
this item (i).
(ii) For a given delivery year, the alternative
retail electric supplier may elect to supply its
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

HB3446 - 39 - LRB102 16951 SPS 22368 b
subparagraph (H) to supply renewable energy credits to
retail customers of the utility. Such election shall
identify the amount of renewable energy credits to be
supplied by the alternative retail electric supplier
to the utility's retail customers and the source of
the renewable energy credits identified in the
informational filing as described in item (i) of this
subparagraph (H), subject to the following
limitations:
For the delivery year beginning June 1, 2018,
the maximum amount of renewable energy credits to
be supplied by an alternative retail electric
supplier under this subparagraph (H) shall be 68%
multiplied by 25% multiplied by 14.5% multiplied
by the amount of metered electricity
(megawatt-hours) delivered by the alternative
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

HB3446 - 40 - LRB102 16951 SPS 22368 b
the alternative retail electric supplier to
Illinois retail customers during the delivery year
ending May 31, 2016, provided that the 16% value
shall increase by 1.5% each delivery year
thereafter to 25% by the delivery year beginning
June 1, 2025, and thereafter the 25% value shall
apply to each delivery year.
For each delivery year, the total amount of
renewable energy credits supplied by all alternative
retail electric suppliers under this subparagraph (H)
shall not exceed 9% of the Illinois target renewable
energy credit quantity. The Illinois target renewable
energy credit quantity for the delivery year beginning
June 1, 2018 is 14.5% multiplied by the total amount of
metered electricity (megawatt-hours) delivered in the
delivery year immediately preceding that delivery
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

HB3446 - 41 - LRB102 16951 SPS 22368 b
of the quantity of renewable energy credits supplied
by the alternative retail electric supplier compared
to that supplier's target renewable energy credit
quantity. The supplier's target renewable energy
credit quantity for the delivery year beginning June
1, 2018 is 14.5% multiplied by the total amount of
metered electricity (megawatt-hours) delivered by the
alternative retail supplier in that delivery year,
provided that the 14.5% shall increase by 1.5% each
delivery year thereafter to 25% by the delivery year
beginning June 1, 2025, and thereafter the 25% value
shall apply to each delivery year.
On or before April 1 of each year, the Agency shall
annually publish a report on its website that
identifies the aggregate amount of renewable energy
credits supplied by alternative retail electric
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

HB3446 - 42 - LRB102 16951 SPS 22368 b
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 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. To ensure that the public interest
criteria are applied to the procurement and given full
effect, the Agency's long-term procurement plan shall
describe in detail how each public interest factor shall
be considered and weighted for facilities located in
states adjacent to Illinois.
(J) In order to promote the competitive development of
renewable energy resources in furtherance of the State's
interest in the health, safety, and welfare of its
residents, renewable energy credits shall not be eligible
to be counted toward the renewable energy requirements of
this subsection (c) if they are sourced from a generating
unit whose costs were being recovered through rates

HB3446 - 43 - LRB102 16951 SPS 22368 b
regulated by this State or any other state or states on or
after January 1, 2017. Each contract executed to purchase
renewable energy credits under this subsection (c) shall
provide for the contract's termination if the costs of the
generating unit supplying the renewable energy credits
subsequently begin to be recovered through rates regulated
by this State or any other state or states; and each
contract shall further provide that, in that event, the
supplier of the credits must return 110% of all payments
received under the contract. Amounts returned under the
requirements of this subparagraph (J) shall be retained by
the utility and all of these amounts shall be used for the
procurement of additional renewable energy credits from
new wind or new photovoltaic resources as defined in this
subsection (c). The long-term plan shall provide that
these renewable energy credits shall be procured in the
next procurement event.
Notwithstanding the limitations of this subparagraph
(J), renewable energy credits sourced from generating
units that are constructed, purchased, owned, or leased by
an electric utility as part of an approved project,
program, or pilot under Section 1-56 of this Act shall be
eligible to be counted toward the renewable energy
requirements of this subsection (c), regardless of how the
costs of these units are recovered.
(K) The long-term renewable resources procurement plan

HB3446 - 44 - LRB102 16951 SPS 22368 b
developed by the Agency in accordance with subparagraph
(A) of this paragraph (1) shall include an Adjustable
Block program for the procurement of renewable energy
credits from new photovoltaic projects that are
distributed renewable energy generation devices or new
photovoltaic community renewable generation projects. The
Adjustable Block program shall be designed to provide a
transparent schedule of prices and quantities to enable
the photovoltaic market to scale up and for renewable
energy credit prices to adjust at a predictable rate over
time. The prices set by the Adjustable Block program can
be reflected as a set value or as the product of a formula.
The Adjustable Block program shall include for each
category of eligible projects: a schedule of standard
block purchase prices to be offered; a series of steps,
with associated nameplate capacity and purchase prices
that adjust from step to step; and automatic opening of
the next step as soon as the nameplate capacity and
available purchase prices for an open step are fully
committed or reserved. Only projects energized on or after
June 1, 2017 shall be eligible for the Adjustable Block
program. For each block group the Agency shall determine
the number of blocks, the amount of generation capacity in
each block, and the purchase price for each block,
provided that the purchase price provided and the total
amount of generation in all blocks for all block groups

HB3446 - 45 - LRB102 16951 SPS 22368 b
shall be sufficient to meet the goals in this subsection
(c). The Agency may periodically review its prior
decisions establishing the number of blocks, the amount of
generation capacity in each block, and the purchase price
for each block, and may propose, on an expedited basis,
changes to these previously set values, including but not
limited to redistributing these amounts and the available
funds as necessary and appropriate, subject to Commission
approval as part of the periodic plan revision process
described in Section 16-111.5 of the Public Utilities Act.
The Agency may define different block sizes, purchase
prices, or other distinct terms and conditions for
projects located in different utility service territories
if the Agency deems it necessary to meet the goals in this
subsection (c).
The Adjustable Block program shall include at least
the following block groups in at least the following
amounts, which may be adjusted upon review by the Agency
and approval by the Commission as described in this
subparagraph (K):
(i) At least 25% from distributed renewable energy
generation devices with a nameplate capacity of no
more than 10 kilowatts.
(ii) At least 25% from distributed renewable
energy generation devices with a nameplate capacity of
more than 10 kilowatts and no more than 2,000

HB3446 - 46 - LRB102 16951 SPS 22368 b
kilowatts. The Agency may create sub-categories within
this category to account for the differences between
projects for small commercial customers, large
commercial customers, and public or non-profit
customers.
(iii) At least 25% from photovoltaic community
renewable generation projects.
(iv) The remaining 25% shall be allocated as
specified by the Agency in the long-term renewable
resources procurement plan.
The Adjustable Block program shall be designed to
ensure that renewable energy credits are procured from
photovoltaic distributed renewable energy generation
devices and new photovoltaic community renewable energy
generation projects in diverse locations and are not
concentrated in a few geographic areas.
(L) The procurement of photovoltaic renewable energy
credits under items (i) through (iv) of subparagraph (K)
of this paragraph (1) shall be subject to the following
contract and payment terms:
(i) The Agency shall procure contracts of at least
15 years in length.
(ii) For those renewable energy credits that
qualify and are procured under item (i) of
subparagraph (K) of this paragraph (1), the renewable
energy credit purchase price shall be paid in full by

HB3446 - 47 - LRB102 16951 SPS 22368 b
the contracting utilities at the time that the
facility producing the renewable energy credits is
interconnected at the distribution system level of the
utility and energized. The electric utility shall
receive and retire all renewable energy credits
generated by the project for the first 15 years of
operation.
(iii) For those renewable energy credits that
qualify and are procured under item (ii) and (iii) of
subparagraph (K) of this paragraph (1) and any
additional categories of distributed generation
included in the long-term renewable resources
procurement plan and approved by the Commission, 20
percent of the renewable energy credit purchase price
shall be paid by the contracting utilities at the time
that the facility producing the renewable energy
credits is interconnected at the distribution system
level of the utility and energized. The remaining
portion shall be paid ratably over the subsequent
4-year period. The electric utility shall receive and
retire all renewable energy credits generated by the
project for the first 15 years of operation.
(iv) Each contract shall include provisions to
ensure the delivery of the renewable energy credits
for the full term of the contract.
(v) The utility shall be the counterparty to the

HB3446 - 48 - LRB102 16951 SPS 22368 b
contracts executed under this subparagraph (L) that
are approved by the Commission under the process
described in Section 16-111.5 of the Public Utilities
Act. No contract shall be executed for an amount that
is less than one renewable energy credit per year.
(vi) If, at any time, approved applications for
the Adjustable Block program exceed funds collected by
the electric utility or would cause the Agency to
exceed the limitation described in subparagraph (E) of
this paragraph (1) on the amount of renewable energy
resources that may be procured, then the Agency shall
consider future uncommitted funds to be reserved for
these contracts on a first-come, first-served basis,
with the delivery of renewable energy credits required
beginning at the time that the reserved funds become
available.
(vii) Nothing in this Section shall require the
utility to advance any payment or pay any amounts that
exceed the actual amount of revenues collected by the
utility under paragraph (6) of this subsection (c) and
subsection (k) of Section 16-108 of the Public
Utilities Act, and contracts executed under this
Section shall expressly incorporate this limitation.
(M) The Agency shall be authorized to retain one or
more experts or expert consulting firms to develop,
administer, implement, operate, and evaluate the

HB3446 - 49 - LRB102 16951 SPS 22368 b
Adjustable Block program described in subparagraph (K) of
this paragraph (1), and the Agency shall retain the
consultant or consultants in the same manner, to the
extent practicable, as the Agency retains others to
administer provisions of this Act, including, but not
limited to, the procurement administrator. The selection
of experts and expert consulting firms and the procurement
process described in this subparagraph (M) are exempt from
the requirements of Section 20-10 of the Illinois
Procurement Code, under Section 20-10 of that Code. The
Agency shall strive to minimize administrative expenses in
the implementation of the Adjustable Block program.
The Agency and its consultant or consultants shall
monitor block activity, share program activity with
stakeholders and conduct regularly scheduled meetings to
discuss program activity and market conditions. If
necessary, the Agency may make prospective administrative
adjustments to the Adjustable Block program design, such
as redistributing available funds or making adjustments to
purchase prices as necessary to achieve the goals of this
subsection (c). Program modifications to any price,
capacity block, or other program element that do not
deviate from the Commission's approved value by more than
25% shall take effect immediately and are not subject to
Commission review and approval. Program modifications to
any price, capacity block, or other program element that

HB3446 - 50 - LRB102 16951 SPS 22368 b
deviate more than 25% from the Commission's approved value
must be approved by the Commission as a long-term plan
amendment under Section 16-111.5 of the Public Utilities
Act. The Agency shall consider stakeholder feedback when
making adjustments to the Adjustable Block design and
shall notify stakeholders in advance of any planned
changes.
(N) The long-term renewable resources procurement plan
required by this subsection (c) shall include a community
renewable generation program. The Agency shall establish
the terms, conditions, and program requirements for
community renewable generation projects with a goal to
expand renewable energy generating facility access to a
broader group of energy consumers, to ensure robust
participation opportunities for residential and small
commercial customers and those who cannot install
renewable energy on their own properties. Any plan
approved by the Commission shall allow subscriptions to
community renewable generation projects to be portable and
transferable. For purposes of this subparagraph (N),
"portable" means that subscriptions may be retained by the
subscriber even if the subscriber relocates or changes its
address within the same utility service territory; and
"transferable" means that a subscriber may assign or sell
subscriptions to another person within the same utility
service territory.

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Electric utilities shall provide a monetary credit to
a subscriber's subsequent bill for service for the
proportional output of a community renewable generation
project attributable to that subscriber as specified in
Section 16-107.5 of the Public Utilities Act.
The Agency shall purchase renewable energy credits
from subscribed shares of photovoltaic community renewable
generation projects through the Adjustable Block program
described in subparagraph (K) of this paragraph (1) or
through the Illinois Solar for All Program described in
Section 1-56 of this Act. The electric utility shall
purchase any unsubscribed energy from community renewable
generation projects that are Qualifying Facilities ("QF")
under the electric utility's tariff for purchasing the
output from QFs under Public Utilities Regulatory Policies
Act of 1978.
The owners of and any subscribers to a community
renewable generation project shall not be considered
public utilities or alternative retail electricity
suppliers under the Public Utilities Act solely as a
result of their interest in or subscription to a community
renewable generation project and shall not be required to
become an alternative retail electric supplier by
participating in a community renewable generation project
with a public utility.
(O) For the delivery year beginning June 1, 2018, the

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long-term renewable resources procurement plan required by
this subsection (c) shall provide for the Agency to
procure contracts to continue offering the Illinois Solar
for All Program described in subsection (b) of Section
1-56 of this Act, and the contracts approved by the
Commission shall be executed by the utilities that are
subject to this subsection (c). The long-term renewable
resources procurement plan shall allocate 5% of the funds
available under the plan for the applicable delivery year,
or $10,000,000 per delivery year, whichever is greater, to
fund the programs, and the plan shall determine the amount
of funding to be apportioned to the programs identified in
subsection (b) of Section 1-56 of this Act; provided that
for the delivery years beginning June 1, 2017, June 1,
2021, and June 1, 2025, the long-term renewable resources
procurement plan shall allocate 10% of the funds available
under the plan for the applicable delivery year, or
$20,000,000 per delivery year, whichever is greater, and
$10,000,000 of such funds in such year shall be used by an
electric utility that serves more than 3,000,000 retail
customers in the State to implement a Commission-approved
plan under Section 16-108.12 of the Public Utilities Act.
In making the determinations required under this
subparagraph (O), the Commission shall consider the
experience and performance under the programs and any
evaluation reports. The Commission shall also provide for

HB3446 - 53 - LRB102 16951 SPS 22368 b
an independent evaluation of those programs on a periodic
basis that are funded under this subparagraph (O).
(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
(2) of this subsection (c), the Agency shall increase its

HB3446 - 54 - LRB102 16951 SPS 22368 b
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
State and federal law, the renewable energy credit

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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 resources 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 a procurement event 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 resources to be
installed at or adjacent to the sites of electric
generating facilities that, as of January 1, 2019, burned
coal as their primary fuel source. 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

HB3446 - 56 - LRB102 16951 SPS 22368 b
procured pursuant to subsection (c) of this Section. 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, 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) No later than October 31, 2021, the Agency shall
conduct a procurement event 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 that served more than 300,000 retail customers
in this State as of January 1, 2019. 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

HB3446 - 57 - LRB102 16951 SPS 22368 b
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 and south of federal
Interstate Highway 80 that (i) as of January 1, 2019,
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
either (i) retired as of October 31, 2021, or (ii)
still operating as of October 31, 2021.
(B) The applicant is not (i) a public utility as
defined in Section 3-105 of the Public Utilities Act,
(ii) an electric cooperative as defined in Section
3-119 of the Public Utilities Act, or (iii) an entity
described in paragraph (1) of subsection (b) of
Section 3-105 of the Public Utilities Act, or an
association or consortium of or an entity owned by
entities described in (ii) or (iii).
(C) The applicant proposes and commits to
construct and operate, at the site, or on property
adjacent to the existing property, of the electric
generating facility identified in paragraph (A): (i) a
new renewable energy resource of at least 20 megawatts
but no more than 100 megawatts of electric generating

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capacity; and (ii) an energy storage facility to be
operated in conjunction with the new renewable energy
resource and having a storage capacity of at least 2
megawatts and at most 10 megawatts.
(D) The applicant agrees that the new renewable
energy resource 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 the personnel
operating the new renewable energy resource 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
applicant to employees of the coal-fueled electric
generating facilities being retired, or by previous
employment experience performing the employee's
particular work skill or function.
(F) The applicant commits to enter into a contract
or contracts of 15 years duration to provide a

HB3446 - 59 - LRB102 16951 SPS 22368 b
specified number of renewable energy credits to
electric utilities that served more than 300,000
retail customers in this State as of January 1, 2019 at
a price of $35 per renewable energy credit.
(G) 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 resource to be constructed at or adjacent
to more than one qualifying electric generating facility
site owned by the applicant. The Agency may select new
renewable energy resources to be located at or adjacent to
the sites of more than one qualifying electric generating
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.

HB3446 - 60 - LRB102 16951 SPS 22368 b
(5) The Agency shall select the applicants and the new
renewable energy resources to contract with electric
utilities to supply renewable energy credits in accordance
with this subsection (c-5). The Agency shall select
applicants and new renewable energy resources to supply
renewable energy credits aggregating to no less than
400,000 renewable energy credits per year for 15 years,
assuming sufficient qualifying applications to supply at
least that amount of renewable energy credits per year;
and no more than 600,000 renewable energy credits per year
for 15 years. The obligation to purchase renewable energy
credits from the applicants and their new renewable energy
resources selected by the Agency shall be allocated to
electric utilities as follows: (i) electric utilities
serving more than 1,000,000 retail customers in this State
shall be required to contract to purchase 70%, and
electric utilities serving more than 300,000 but less than
1,000,000 retail customers in this State shall be required
to contract to purchase 30 %, of the renewable energy
credits from the applicants and the new renewable energy
resources selected by the Agency. In order to achieve
these allocation percentages between or among the electric
utilities, the Agency may require an applicant to enter
into contracts with more than one electric utility for the
sale and purchase of renewable energy credits from a new
renewable energy resource to be constructed and operated

HB3446 - 61 - LRB102 16951 SPS 22368 b
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 such new renewable energy resource. The
Agency shall submit its proposed selection of applicants,
new renewable energy resources to be constructed, and
renewable energy credit amounts, 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 resources to be
constructed meet the selection criteria set forth in this
subsection (c-5) and that the Agency proposes to select
applicants for contracts aggregating to no more than
600,000 renewable energy credits per year for 15 years.
(6) 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
for the sale, delivery and purchase of renewable energy
credits pursuant to this subsection (c-5). The contracts
shall provide for commercial operation dates for the new
renewable energy resources such that (i) the new renewable
energy resources from which approximately 50% of the
renewable energy credits are contracted will be required

HB3446 - 62 - LRB102 16951 SPS 22368 b
to achieve commercial operation by June 1, 2023, and will
receive payments for renewable energy credits for the
15-year period beginning June 1, 2023, and (ii) the new
renewable energy resources from which the remainder of the
renewable energy credits are contracted will be required
to achieve commercial operation by June 1, 2024, and will
receive payments for renewable energy credits for the
15-year period beginning June 1, 2024, with such dates
subject to adjustment as provided in the this paragraph.
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
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

HB3446 - 63 - LRB102 16951 SPS 22368 b
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
procurement event.
(7) Coal to Solar and Energy Storage Initiative
Charge.
(A) Within 30 days following the effective date of
this amendatory Act of the 102nd General Assembly,
each electric utility that served more than 300,000
retail customers in this State as of January 1, 2019
shall file a tariff 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. 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 of (i) 0.072 cents per kilowatthour from the
effective date of the tariff through December 31,
2024, (ii) 0.055 cents per kilowatthour from January
1, 2025 through December 31, 2025, (iii) 0.030 cents

HB3446 - 64 - LRB102 16951 SPS 22368 b
per kilowatthour from January 1, 2026 through December
31, 2033, (iv) 0.024 cents per kilowatthour from
January 1, 2034 through December 31, 2034, (v) 0.018
cents per kilowatthour from January 1, 2035 through
December 31, 2037, and (vi) 0.009 cents per
kilowatthour from January 1, 2038 through December 31
of the year in which the last renewable energy credit
sale and purchase contract entered into pursuant to
this subsection (c-5) terminates.
(B) Each electric utility shall remit, on a
monthly basis, to the State Treasurer for deposit into
the Coal to Solar and Energy Storage Incentive and
Plant Transition Fund provided for in this subsection
(c-5), 100% of its collections of the Coal to Solar and
Energy Storage Initiative Charge, less, beginning
March 1, 2023, sufficient funds for the electric
utility to make its estimated next 3 monthly payments
for renewable energy credits pursuant to contracts
entered into pursuant to this subsection (c-5).
Provided, that if as of May 31 of any year beginning
January 1, 2025 or thereafter, an electric utility
holds Coal to Solar and Energy Storage Initiative
Charge collections greater than 110% of its projected
payment obligations under such contracts for the
following 6 months, the electric utility shall refund
one-half of such excess collections to its delivery

HB3446 - 65 - LRB102 16951 SPS 22368 b
services customers on a uniform cents per kilowatthour
basis over a 6-month period, in accordance with a
procedure specified in its Coal to Solar and Energy
Storage Initiative Charge tariff.
(8) Coal to Solar and Energy Storage Incentive and
Plant Transition Fund.
(A) The Coal to Solar and Energy Storage Incentive
and Plant Transition Fund is established as a special
fund in the State treasury. The Coal to Solar and
Energy Storage Incentive and Plant Transition Fund is
authorized to receive, by statutory deposit, that
portion specified in item (B) of paragraph (7) 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
Incentive and Plant Transition Fund shall be
administered by the Illinois Department of Commerce
and Economic Opportunity, which shall be referred to
in this subsection (c-5) as the Department, to provide
transitional support funding to coal-fueled electric
generating facilities in this State owned by an
applicant, or by a company with a common parent
company as an applicant, that has been selected by the
Agency to enter into a contract or contracts to sell
renewable energy credits from a new renewable energy

HB3446 - 66 - LRB102 16951 SPS 22368 b
resource to an electric utility in accordance with
this subsection (c-5).
(B) The objective of the transitional support
funding provided for in this paragraph (8) is to
assist and enable qualifying electric generating
facilities in this State to remain in operation during
the period from the effective date of this amendatory
Act of the 102nd General Assembly through May 31,
2025, in order to ensure that adequate electric
generating resources are available in this State
through that date, while the State's portfolio of
renewable energy resources is being expanded, and to
provide a transition period for the communities in
which qualifying electric generating facilities are
located prior to the retirement of the qualifying
electric generating facilities.
(C) The Coal to Solar and Energy Storage Incentive
and Plant Transition 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 Incentive and Plant
Transition Fund to any other fund of this State or in
having any such funds used for any purpose other than
the express purposes set forth in this paragraph (8)

HB3446 - 67 - LRB102 16951 SPS 22368 b
of subsection (c-5).
(D) The Department shall provide grants of
transitional support funding from the Coal to Solar
and Energy Storage Incentive and Plant Transition Fund
to owners of qualifying electric generating facilities
in this State that meet the criteria specified in this
paragraph (8) of subsection (c-5), for the period
January 1, 2022 through May 31, 2025, in aggregate
amounts not exceeding $75,000,000 in each calendar
year 2022 through 2024 and $31,000,000 for the period
January 1, 2025 through May 31, 2025, for grants in
respect of 2,200 megawatts of electric generating
capacity. The amount of transitional support funding
granted to the owner of a qualifying electric
generating facility for a calendar year shall be equal
to the product of (i) $93 less the clearing price per
megawatt-day in the Planning Resource Auction of the
Midcontinent Independent System Operator, Inc., which
shall be referred to in this subparagraph (D) as MISO,
held in the preceding calendar year (but not less than
$0), times (ii) the megawatts of electric generating
capacity of the qualifying electric generating
facility, times (iii) 365, which the General Assembly
finds is an amount that should enable a qualifying
electric generating facility to recover its annual
cost of service; provided, (1) that for the period

HB3446 - 68 - LRB102 16951 SPS 22368 b
January 1, 2025 through May 31, 2025, the amount of
transitional support funding granted to the owner of a
qualifying electric generating facility shall be equal
to the product of (i) $93 less the clearing price per
megawatt-day in the Planning Resource Auction of the
MISO held in the preceding calendar year (but not less
than $0), times (ii) the megawatts of electric
generating capacity of the qualifying electric
generating facility, times (iii) 151; and provided
further that for each calendar year 2022 through 2024
and for the period January 31, 2025 through May 31,
2025, the owner may request that a lower number of
megawatts than the full rated generating capacity of
an electric generating facility be used to calculate
the amount of transitional support funding provided to
that electric generating facility for such period. For
avoidance of doubt and by way of example, if grants of
transitional support funding for 2,200 megawatts of
electric generating capacity of qualifying electric
generating facilities are made for a calendar year and
the clearing price in the MISO Planning Resource
Auction for the preceding calendar year equaled $50
per megawatt-day, the aggregate amount of the grants
of transitional support funding for the calendar year
would be $34,529,000. If the clearing price in the
MISO Planning Resource Auction in the preceding

HB3446 - 69 - LRB102 16951 SPS 22368 b
calendar year is equal to or greater than $93 per
megawatt-day, no transition support funding shall be
paid for the current year.
(E) The grant amounts shall be paid to the
recipients on a quarterly basis with payments to be
made on May 31, August 31, November 30, and February 28
for the immediately preceding calendar quarter, with
the final payment for the period April 1, 2025 through
May 31, 2025, to be made on July 31, 2025, in each case
subject to the availability of sufficient funds in the
Coal to Solar and Energy Storage Incentive and Plant
Transition Fund, with any shortfall in a payment to be
added to the payment due for the period immediately
following. No grant payments for transitional support
funding shall be made to the owner of a qualifying
electric generating facility in respect of any period
subsequent to the retirement date of the electric
generating facility.
(F) The qualifications for a grant of transitional
support funding from the Coal to Solar and Energy
Storage Incentive and Plant Transition Fund for an
electric generating facility are as follows: (i) the
electric generating facility is located in this State
south of federal Interstate Highway 80, but is not
directly interconnected to an electric utility located
within the PJM Interconnection, LLC independent system

HB3446 - 70 - LRB102 16951 SPS 22368 b
operator region; (ii) the electric generating facility
has an electric generating capacity of at least 150
megawatts; (iii) the electric generating facility
burned coal as its primary source of fuel as of January
1, 2019; (iv) the electric generating facility either
is owned by an applicant that has been selected by the
Agency pursuant to this subsection (c-5) to enter into
a contract or contracts with one or more electric
utilities to deliver renewable energy credits from a
new renewable energy resource to be constructed at or
adjacent to an existing or retired electric generating
facility owned by the applicant, or is owned by a
company that has a common parent company with such an
applicant and has been designated by the applicant to
the Department as a candidate to receive a grant of
transitional support funding; and (v) the owner of the
electric generating facility commits, as a condition
to receiving the grant of transitional support
funding, to maintain the electric generating facility
in operation until at least May 31, 2025.
(G) If a coal-fueled electric generating facility
that is awarded a grant of transitional support
funding pursuant to this paragraph (8) and therefore
is designated pursuant to subparagraph (F) for
retirement no earlier than May 31, 2025, is required
(i) prior to May 31, 2025, to make capital

HB3446 - 71 - LRB102 16951 SPS 22368 b
expenditures of at least $5,000,000 in order to remain
in or attain compliance with any environmental law or
regulation, (ii) prior to May 31, 2025, to make
capital expenditures for purposes other than
environmental compliance of at least $5,000,000 that
were neither known or reasonably foreseeable as of
September 1, 2021, or (iii) prior to May 31, 2025, to
retire or cease operations pursuant to an order or
approval of a court, regulatory agency, or
administrative body, consent decree, administrative
compliance order or agreement, or other similar
legally enforceable order or agreement, then such
coal-fueled electric generating facility may be
retired, (1) in the event of (i) or (ii) above, by
December 31 of the year prior to the year in which such
capital expenditures must be incurred, and (2) in the
event of (iii) above, by such date as required
pursuant to the applicable order or approval, consent
decree, administrative compliance order or agreement,
or other similar legally enforceable order or
agreement. Additionally, if the owner of the electric
generating facility does not receive a full grant
payment in accordance with the grant contract for 2
consecutive quarters for any reason other than
insufficient collections deposited into the Coal to
Solar and Energy Storage Incentive and Plant

HB3446 - 72 - LRB102 16951 SPS 22368 b
Transition Fund to make the full quarterly grant
payment, the owner may forthwith retire the electric
generating facility. The owner of any coal-fueled
electric generating facility retired pursuant to this
paragraph shall receive no further grant payments of
transitional support funding in respect of that
facility for periods after its retirement date.
(H) An owner may receive a grant of transitional
support funding from the Coal to Solar and Energy
Storage Incentive and Plant Transition Fund for more
than one qualifying electric generating facility.
(I) The Department shall establish a schedule for
receiving and evaluating applications for grants of
transitional support funding from the Coal to Solar
and Energy Storage Incentive and Plant Transition
Fund. The schedule shall be consistent with the
schedule established by the Agency for receiving and
evaluating applications to be selected to enter into
contracts to sell renewable energy credits from new
renewable energy resources in accordance with this
subsection (c-5). The Department shall announce the
qualifying electric generating facilities that will
receive grants of transitional funding support from
the Coal to Solar and Energy Storage Incentive and
Plant Transition Fund no later than November 30, 2021.
(J) In addition to the grants for transitional

HB3446 - 73 - LRB102 16951 SPS 22368 b
support funding provided for in this paragraph (8),
the Department shall utilize up to $150,000,000 in the
Coal to Solar and Energy Storage Incentive and Plant
Transition Fund for grants, assuming sufficient
qualifying applicants, to support installation of
energy storage facilities at the sites of up to 5
electric generating facilities in Illinois that meet
the criteria set forth in this paragraph (J). The
criteria for receipt of a grant pursuant to this
paragraph (J) are as follows: (1) the site is located
south of federal Interstate Highway 80; (2) the
electric generating facility has, or had prior to
retirement, an electric generating capacity of at
least 150 megawatts; (3) the electric generating
facility burns (or burned prior to retirement) coal as
its primary source of fuel; (4) if the electric
generating facility is retired, it was retired
subsequent to July 1, 2011; (5) the electric
generating facility has not been selected by the
Agency pursuant to 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 resource located or to be located at or
adjacent to the site of the electric generating
facility; (6) the electric generating facility or the
site of the facility is not owned by (i) a public

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utility as defined in Section 3-105 of the Public
Utilities Act, (ii) an electric cooperative as defined
in Section 3-119 of the Public Utilities Act, or (iii)
an entity described in paragraph (1) of subsection (b)
of Section 3-105 of the Public Utilities Act, or an
association or consortium of or an entity owned by
entities described in (ii) or (iii); (7) the proposed
energy storage facility at the site will have energy
storage capacity of at least 20 megawatts; (8) the
owner commits to place the energy storage facility
into commercial operation to begin service either by
June 1, 2024 or June 1, 2025, with such dates subject
to adjustment as needed due to any delays in
completing the grant contracting process, in
finalizing interconnection agreements and 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 thereunder; and
(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

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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 generating
facility being retired or by previous employment
experience performing the employee's particular work
skill or function. The Department shall accept
applications for this grant program until June 30,
2022, and shall announce the award of grants no later
than September 30, 2022. The Department shall make the
grant payments to a recipient in equal annual amounts
for 10 years July 1 next 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 paragraph (J) for qualifying
energy storage facilities not to exceed $15,000,000.
Any uncommitted portion of the amount of funding set
aside by the Department for grants to support
installation of energy storage facilities pursuant to
this subparagraph (J) shall be used for grants of
transitional support funding in accordance with this
paragraph (8), to the extent needed.

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(K) Grants of transitional support funding, and of
funding for energy storage facilities pursuant to
subparagraph (J) of this paragraph (8), from the Coal
to Solar and Energy Storage Incentive and Plant
Transition Fund shall be memorialized in grant
contracts between the Department and the recipient.
(L) All disbursements from the Coal to Solar and
Energy Storage Incentive and Plant Transition 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 released from
liability for all payments made on those warrants.
(M) Beginning May 1, 2026, and May 1 of each year
thereafter, any amounts in the Coal to Solar and
Energy Storage Incentive and Plant Transition Fund
that exceed 110% of the amount needed to fund
contracted grant payments to support new energy
storage facilities pursuant to subparagraph (J) of
this paragraph (8) for such year shall be returned by
the Department to the electric utilities, in the same
proportion as the electric utilities' original

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remittances for deposits into the Coal to Solar and
Energy Storage Incentive and Plant Transition Fund.
Each electric utility shall refund any such amounts it
receives to its delivery services customers on a
uniform cents per kilowatthour basis over a 6-month
period in accordance with procedures specified in the
electric utility's tariff for billing and collection
of the Coal to Solar and Energy Storage Initiative
Charge.
(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

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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
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

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(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
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;

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(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
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, in each of cases (i) and (ii)
reduced by the amount of the Coal to Solar and Energy
Storage Incentive Charges provided for in subsection
(c-5) in effect during such year. These requirements
may be altered only as provided by statute.

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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
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

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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
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

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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;
(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

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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
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

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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
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

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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
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

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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
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

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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
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),

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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
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

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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
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

HB3446 - 91 - LRB102 16951 SPS 22368 b
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
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.

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(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
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

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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
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

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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
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.

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(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
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

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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
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

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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
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.

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(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
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,

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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
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

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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
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

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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
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,

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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
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:

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(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
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

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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
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):

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"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
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

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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
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

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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
(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

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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
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

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(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.
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

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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
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

HB3446 - 111 - LRB102 16951 SPS 22368 b
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
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

HB3446 - 112 - LRB102 16951 SPS 22368 b
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
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.

HB3446 - 113 - LRB102 16951 SPS 22368 b
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
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

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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
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

HB3446 - 115 - LRB102 16951 SPS 22368 b
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
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),

HB3446 - 116 - LRB102 16951 SPS 22368 b
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.
(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

HB3446 - 117 - LRB102 16951 SPS 22368 b
under subsection (m) of Section 16-108 of the Public
Utilities Act.
(7) This subsection (d-5) shall become inoperative on
January 1, 2028.
(e) The draft procurement plans are subject to public
comment, as required by Section 16-111.5 of the Public
Utilities Act.
(f) The Agency shall submit the final procurement plan to
the Commission. The Agency shall revise a procurement plan if
the Commission determines that it does not meet the standards
set forth in Section 16-111.5 of the Public Utilities Act.
(g) The Agency shall assess fees to each affected utility
to recover the costs incurred in preparation of the annual
procurement plan for the utility.
(h) The Agency shall assess fees to each bidder to recover
the costs incurred in connection with a competitive
procurement process.
(i) A renewable energy credit (including renewable energy
credits sold, delivered, and purchased under a contract
entered into pursuant to subsection (c-5) of this Section),
carbon emission credit, or zero emission credit can only be
used once to comply with a single portfolio or other standard
as set forth in subsection (c), subsection (d), or subsection
(d-5) of this Section, respectively. A renewable energy
credit, carbon emission credit, or zero emission credit cannot
be used to satisfy the requirements of more than one standard.

HB3446 - 118 - LRB102 16951 SPS 22368 b
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. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19;
101-113, eff. 1-1-20.)
Section 15. The State Finance Act is amended by adding
Section 5.935 as follows:
(30 ILCS 105/5.935 new)
Sec. 5.935. The Coal to Solar and Energy Storage Incentive
and Plant Transition Fund.
Section 20. The Public Utilities Act is amended by
changing Sections 16-108 and 16-111.5 as follows:
(220 ILCS 5/16-108)
Sec. 16-108. Recovery of costs associated with the
provision of delivery services and certain other charges
services.
(a) An electric utility shall file a delivery services
tariff with the Commission at least 210 days prior to the date
that it is required to begin offering such services pursuant
to this Act. An electric utility shall provide the components

HB3446 - 119 - LRB102 16951 SPS 22368 b
of delivery services that are subject to the jurisdiction of
the Federal Energy Regulatory Commission at the same prices,
terms and conditions set forth in its applicable tariff as
approved or allowed into effect by that Commission. The
Commission shall otherwise have the authority pursuant to
Article IX to review, approve, and modify the prices, terms
and conditions of those components of delivery services not
subject to the jurisdiction of the Federal Energy Regulatory
Commission, including the authority to determine the extent to
which such delivery services should be offered on an unbundled
basis. In making any such determination the Commission shall
consider, at a minimum, the effect of additional unbundling on
(i) the objective of just and reasonable rates, (ii) electric
utility employees, and (iii) the development of competitive
markets for electric energy services in Illinois.
(b) The Commission shall enter an order approving, or
approving as modified, the delivery services tariff no later
than 30 days prior to the date on which the electric utility
must commence offering such services. The Commission may
subsequently modify such tariff pursuant to this Act.
(c) The electric utility's tariffs shall define the
classes of its customers for purposes of delivery services
charges. Delivery services shall be priced and made available
to all retail customers electing delivery services in each
such class on a nondiscriminatory basis regardless of whether
the retail customer chooses the electric utility, an affiliate

HB3446 - 120 - LRB102 16951 SPS 22368 b
of the electric utility, or another entity as its supplier of
electric power and energy. Charges for delivery services shall
be cost based, and shall allow the electric utility to recover
the costs of providing delivery services through its charges
to its delivery service customers that use the facilities and
services associated with such costs. Such costs shall include
the costs of owning, operating and maintaining transmission
and distribution facilities. The Commission shall also be
authorized to consider whether, and if so to what extent, the
following costs are appropriately included in the electric
utility's delivery services rates: (i) the costs of that
portion of generation facilities used for the production and
absorption of reactive power in order that retail customers
located in the electric utility's service area can receive
electric power and energy from suppliers other than the
electric utility, and (ii) the costs associated with the use
and redispatch of generation facilities to mitigate
constraints on the transmission or distribution system in
order that retail customers located in the electric utility's
service area can receive electric power and energy from
suppliers other than the electric utility. Nothing in this
subsection shall be construed as directing the Commission to
allocate any of the costs described in (i) or (ii) that are
found to be appropriately included in the electric utility's
delivery services rates to any particular customer group or
geographic area in setting delivery services rates.

HB3446 - 121 - LRB102 16951 SPS 22368 b
(d) The Commission shall establish charges, terms and
conditions for delivery services that are just and reasonable
and shall take into account customer impacts when establishing
such charges. In establishing charges, terms and conditions
for delivery services, the Commission shall take into account
voltage level differences. A retail customer shall have the
option to request to purchase electric service at any delivery
service voltage reasonably and technically feasible from the
electric facilities serving that customer's premises provided
that there are no significant adverse impacts upon system
reliability or system efficiency. A retail customer shall also
have the option to request to purchase electric service at any
point of delivery that is reasonably and technically feasible
provided that there are no significant adverse impacts on
system reliability or efficiency. Such requests shall not be
unreasonably denied.
(e) Electric utilities shall recover the costs of
installing, operating or maintaining facilities for the
particular benefit of one or more delivery services customers,
including without limitation any costs incurred in complying
with a customer's request to be served at a different voltage
level, directly from the retail customer or customers for
whose benefit the costs were incurred, to the extent such
costs are not recovered through the charges referred to in
subsections (c) and (d) of this Section.
(f) An electric utility shall be entitled but not required

HB3446 - 122 - LRB102 16951 SPS 22368 b
to implement transition charges in conjunction with the
offering of delivery services pursuant to Section 16-104. If
an electric utility implements transition charges, it shall
implement such charges for all delivery services customers and
for all customers described in subsection (h), but shall not
implement transition charges for power and energy that a
retail customer takes from cogeneration or self-generation
facilities located on that retail customer's premises, if such
facilities meet the following criteria:
(i) the cogeneration or self-generation facilities
serve a single retail customer and are located on that
retail customer's premises (for purposes of this
subparagraph and subparagraph (ii), an industrial or
manufacturing retail customer and a third party contractor
that is served by such industrial or manufacturing
customer through such retail customer's own electrical
distribution facilities under the circumstances described
in subsection (vi) of the definition of "alternative
retail electric supplier" set forth in Section 16-102,
shall be considered a single retail customer);
(ii) the cogeneration or self-generation facilities
either (A) are sized pursuant to generally accepted
engineering standards for the retail customer's electrical
load at that premises (taking into account standby or
other reliability considerations related to that retail
customer's operations at that site) or (B) if the facility

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is a cogeneration facility located on the retail
customer's premises, the retail customer is the thermal
host for that facility and the facility has been designed
to meet that retail customer's thermal energy requirements
resulting in electrical output beyond that retail
customer's electrical demand at that premises, comply with
the operating and efficiency standards applicable to
"qualifying facilities" specified in title 18 Code of
Federal Regulations Section 292.205 as in effect on the
effective date of this amendatory Act of 1999;
(iii) the retail customer on whose premises the
facilities are located either has an exclusive right to
receive, and corresponding obligation to pay for, all of
the electrical capacity of the facility, or in the case of
a cogeneration facility that has been designed to meet the
retail customer's thermal energy requirements at that
premises, an identified amount of the electrical capacity
of the facility, over a minimum 5-year period; and
(iv) if the cogeneration facility is sized for the
retail customer's thermal load at that premises but
exceeds the electrical load, any sales of excess power or
energy are made only at wholesale, are subject to the
jurisdiction of the Federal Energy Regulatory Commission,
and are not for the purpose of circumventing the
provisions of this subsection (f).
If a generation facility located at a retail customer's

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premises does not meet the above criteria, an electric utility
implementing transition charges shall implement a transition
charge until December 31, 2006 for any power and energy taken
by such retail customer from such facility as if such power and
energy had been delivered by the electric utility. Provided,
however, that an industrial retail customer that is taking
power from a generation facility that does not meet the above
criteria but that is located on such customer's premises will
not be subject to a transition charge for the power and energy
taken by such retail customer from such generation facility if
the facility does not serve any other retail customer and
either was installed on behalf of the customer and for its own
use prior to January 1, 1997, or is both predominantly fueled
by byproducts of such customer's manufacturing process at such
premises and sells or offers an average of 300 megawatts or
more of electricity produced from such generation facility
into the wholesale market. Such charges shall be calculated as
provided in Section 16-102, and shall be collected on each
kilowatt-hour delivered under a delivery services tariff to a
retail customer from the date the customer first takes
delivery services until December 31, 2006 except as provided
in subsection (h) of this Section. Provided, however, that an
electric utility, other than an electric utility providing
service to at least 1,000,000 customers in this State on
January 1, 1999, shall be entitled to petition for entry of an
order by the Commission authorizing the electric utility to

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implement transition charges for an additional period ending
no later than December 31, 2008. The electric utility shall
file its petition with supporting evidence no earlier than 16
months, and no later than 12 months, prior to December 31,
2006. The Commission shall hold a hearing on the electric
utility's petition and shall enter its order no later than 8
months after the petition is filed. The Commission shall
determine whether and to what extent the electric utility
shall be authorized to implement transition charges for an
additional period. The Commission may authorize the electric
utility to implement transition charges for some or all of the
additional period, and shall determine the mitigation factors
to be used in implementing such transition charges; provided,
that the Commission shall not authorize mitigation factors
less than 110% of those in effect during the 12 months ended
December 31, 2006. In making its determination, the Commission
shall consider the following factors: the necessity to
implement transition charges for an additional period in order
to maintain the financial integrity of the electric utility;
the prudence of the electric utility's actions in reducing its
costs since the effective date of this amendatory Act of 1997;
the ability of the electric utility to provide safe, adequate
and reliable service to retail customers in its service area;
and the impact on competition of allowing the electric utility
to implement transition charges for the additional period.
(g) The electric utility shall file tariffs that establish

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the transition charges to be paid by each class of customers to
the electric utility in conjunction with the provision of
delivery services. The electric utility's tariffs shall define
the classes of its customers for purposes of calculating
transition charges. The electric utility's tariffs shall
provide for the calculation of transition charges on a
customer-specific basis for any retail customer whose average
monthly maximum electrical demand on the electric utility's
system during the 6 months with the customer's highest monthly
maximum electrical demands equals or exceeds 3.0 megawatts for
electric utilities having more than 1,000,000 customers, and
for other electric utilities for any customer that has an
average monthly maximum electrical demand on the electric
utility's system of one megawatt or more, and (A) for which
there exists data on the customer's usage during the 3 years
preceding the date that the customer became eligible to take
delivery services, or (B) for which there does not exist data
on the customer's usage during the 3 years preceding the date
that the customer became eligible to take delivery services,
if in the electric utility's reasonable judgment there exists
comparable usage information or a sufficient basis to develop
such information, and further provided that the electric
utility can require customers for which an individual
calculation is made to sign contracts that set forth the
transition charges to be paid by the customer to the electric
utility pursuant to the tariff.

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(h) An electric utility shall also be entitled to file
tariffs that allow it to collect transition charges from
retail customers in the electric utility's service area that
do not take delivery services but that take electric power or
energy from an alternative retail electric supplier or from an
electric utility other than the electric utility in whose
service area the customer is located. Such charges shall be
calculated, in accordance with the definition of transition
charges in Section 16-102, for the period of time that the
customer would be obligated to pay transition charges if it
were taking delivery services, except that no deduction for
delivery services revenues shall be made in such calculation,
and usage data from the customer's class shall be used where
historical usage data is not available for the individual
customer. The customer shall be obligated to pay such charges
on a lump sum basis on or before the date on which the customer
commences to take service from the alternative retail electric
supplier or other electric utility, provided, that the
electric utility in whose service area the customer is located
shall offer the customer the option of signing a contract
pursuant to which the customer pays such charges ratably over
the period in which the charges would otherwise have applied.
(i) An electric utility shall be entitled to add to the
bills of delivery services customers charges pursuant to
Sections 9-221, 9-222 (except as provided in Section 9-222.1),
and Section 16-114 of this Act, Section 5-5 of the Electricity

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Infrastructure Maintenance Fee Law, Section 6-5 of the
Renewable Energy, Energy Efficiency, and Coal Resources
Development Law of 1997, and Section 13 of the Energy
Assistance Act.
(i-5) An electric utility required to impose the Coal to
Solar and Energy Storage Initiative Charge provided for in
subsection (c-5) of Section 1-75 of the Illinois Power Agency
Act shall add such charge to the bills of its delivery services
customers pursuant to the terms of a tariff conforming to the
requirements of subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act and filed with and approved by the
Commission. The electric utility shall file its proposed
tariff with the Commission within 30 days following the
effective date of this amendatory Act of the 102nd General
Assembly. Within 30 days following the date the proposed
tariff is filed with the Commission, the Commission shall
review and approve the electric utility's proposed tariff, or
direct the electric utility to make modifications to conform
to the requirements of subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act. The electric utility's tariff shall
be placed into effect no later than 90 days following the
effective date of this amendatory Act of the 102nd General
Assembly. The electric utility shall use the funds collected
pursuant to the tariff in accordance with subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act, including
remitting a portion of such funds to the State Treasurer for

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deposit into the Coal to Solar and Energy Storage Incentive
and Plant Transition Fund as provided for in subsection (c-5)
of Section 1-75 of the Illinois Power Agency Act.
(j) If a retail customer that obtains electric power and
energy from cogeneration or self-generation facilities
installed for its own use on or before January 1, 1997,
subsequently takes service from an alternative retail electric
supplier or an electric utility other than the electric
utility in whose service area the customer is located for any
portion of the customer's electric power and energy
requirements formerly obtained from those facilities
(including that amount purchased from the utility in lieu of
such generation and not as standby power purchases, under a
cogeneration displacement tariff in effect as of the effective
date of this amendatory Act of 1997), the transition charges
otherwise applicable pursuant to subsections (f), (g), or (h)
of this Section shall not be applicable in any year to that
portion of the customer's electric power and energy
requirements formerly obtained from those facilities,
provided, that for purposes of this subsection (j), such
portion shall not exceed the average number of kilowatt-hours
per year obtained from the cogeneration or self-generation
facilities during the 3 years prior to the date on which the
customer became eligible for delivery services, except as
provided in subsection (f) of Section 16-110.
(k) The electric utility shall be entitled to recover

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through tariffed charges all of the costs associated with the
purchase of zero emission credits from zero emission
facilities to meet the requirements of subsection (d-5) of
Section 1-75 of the Illinois Power Agency Act. Such costs
shall include the costs of procuring the zero emission
credits, as well as the reasonable costs that the utility
incurs as part of the procurement processes and to implement
and comply with plans and processes approved by the Commission
under such subsection (d-5). The costs shall be allocated
across all retail customers through a single, uniform cents
per kilowatt-hour charge applicable to all retail customers,
which shall appear as a separate line item on each customer's
bill. Beginning June 1, 2017, the electric utility shall be
entitled to recover through tariffed charges all of the costs
associated with the purchase of renewable energy resources to
meet the renewable energy resource standards of subsection (c)
of Section 1-75 of the Illinois Power Agency Act, under
procurement plans as approved in accordance with that Section
and Section 16-111.5 of this Act. Such costs shall include the
costs of procuring the renewable energy resources, as well as
the reasonable costs that the utility incurs as part of the
procurement processes and to implement and comply with plans
and processes approved by the Commission under such Sections.
The costs associated with the purchase of renewable energy
resources shall be allocated across all retail customers in
proportion to the amount of renewable energy resources the

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utility procures for such customers through a single, uniform
cents per kilowatt-hour charge applicable to such retail
customers, which shall appear as a separate line item on each
such customer's bill.
Notwithstanding whether the Commission has approved the
initial long-term renewable resources procurement plan as of
June 1, 2017, an electric utility shall place new tariffed
charges into effect beginning with the June 2017 monthly
billing period, to the extent practicable, to begin recovering
the costs of procuring renewable energy resources, as those
charges are calculated under the limitations described in
subparagraph (E) of paragraph (1) of subsection (c) of Section
1-75 of the Illinois Power Agency Act. Notwithstanding the
date on which the utility places such new tariffed charges
into effect, the utility shall be permitted to collect the
charges under such tariff as if the tariff had been in effect
beginning with the first day of the June 2017 monthly billing
period. For the delivery years commencing June 1, 2017, June
1, 2018, and June 1, 2019, the electric utility shall deposit
into a separate interest bearing account of a financial
institution the monies collected under the tariffed charges.
Any interest earned shall be credited back to retail customers
under the reconciliation proceeding provided for in this
subsection (k), provided that the electric utility shall first
be reimbursed from the interest for the administrative costs
that it incurs to administer and manage the account. Any taxes

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

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

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August 31, 2021. During the 4-year period, the utility shall
be permitted to collect and retain funds under this subsection
(k) and to purchase renewable energy resources under an
approved long-term renewable resources procurement plan using
those funds regardless of the delivery year in which the funds
were collected during the 4-year period.
If the amount of funds collected during the delivery year
commencing June 1, 2017, exceeds the costs incurred during
that delivery year, then up to half of this excess amount, as
calculated on June 1, 2018, may be used to fund the programs
under subsection (b) of Section 1-56 of the Illinois Power
Agency Act in the same proportion the programs are funded
under that subsection (b). However, any amount identified
under this subsection (k) to fund programs under subsection
(b) of Section 1-56 of the Illinois Power Agency Act shall be
reduced if it exceeds the funding shortfall. For purposes of
this Section, "funding shortfall" means the difference between
$200,000,000 and the amount appropriated by the General
Assembly to the Illinois Power Agency Renewable Energy
Resources Fund during the period that commences on the
effective date of this amendatory act of the 99th General
Assembly and ends on August 1, 2018.
If the amount of funds collected during the delivery year
commencing June 1, 2018, exceeds the costs incurred during
that delivery year, then up to half of this excess amount, as
calculated on June 1, 2019, may be used to fund the programs

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

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

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

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

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

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the utility shall procure renewable energy resources in
accordance with the applicable provisions set forth in Section
1-75 of the Illinois Power Agency Act and this Section. A small
multi-jurisdictional electric utility that on December 31,
2005 served less than 100,000 customers in Illinois may elect
to procure power and energy for all or a portion of its
eligible Illinois retail customers in accordance with the
applicable provisions set forth in this Section and Section
1-75 of the Illinois Power Agency Act. This Section shall not
apply to a small multi-jurisdictional utility until such time
as a small multi-jurisdictional utility requests the Illinois
Power Agency to prepare a procurement plan for its eligible
retail customers. "Eligible retail customers" for the purposes
of this Section means those retail customers that purchase
power and energy from the electric utility under fixed-price
bundled service tariffs, other than those retail customers
whose service is declared or deemed competitive under Section
16-113 and those other customer groups specified in this
Section, including self-generating customers, customers
electing hourly pricing, or those customers who are otherwise
ineligible for fixed-price bundled tariff service. For those
customers that are excluded from the procurement plan's
electric supply service requirements, and the utility shall
procure any supply requirements, including capacity, ancillary
services, and hourly priced energy, in the applicable markets
as needed to serve those customers, provided that the utility

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may include in its procurement plan load requirements for the
load that is associated with those retail customers whose
service has been declared or deemed competitive pursuant to
Section 16-113 of this Act to the extent that those customers
are purchasing power and energy during one of the transition
periods identified in subsection (b) of Section 16-113 of this
Act.
(b) A procurement plan shall be prepared for each electric
utility consistent with the applicable requirements of the
Illinois Power Agency Act and this Section. For purposes of
this Section, Illinois electric utilities that are affiliated
by virtue of a common parent company are considered to be a
single electric utility. Small multi-jurisdictional utilities
may request a procurement plan for a portion of or all of its
Illinois load. Each procurement plan shall analyze the
projected balance of supply and demand for those retail
customers to be included in the plan's electric supply service
requirements over a 5-year period, with the first planning
year beginning on June 1 of the year following the year in
which the plan is filed. The plan shall specifically identify
the wholesale products to be procured following plan approval,
and shall follow all the requirements set forth in the Public
Utilities Act and all applicable State and federal laws,
statutes, rules, or regulations, as well as Commission orders.
Nothing in this Section precludes consideration of contracts
longer than 5 years and related forecast data. Unless

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specified otherwise in this Section, in the procurement plan
or in the implementing tariff, any procurement occurring in
accordance with this plan shall be competitively bid through a
request for proposals process. Approval and implementation of
the procurement plan shall be subject to review and approval
by the Commission according to the provisions set forth in
this Section. A procurement plan shall include each of the
following components:
(1) Hourly load analysis. This analysis shall include:
(i) multi-year historical analysis of hourly
loads;
(ii) switching trends and competitive retail
market analysis;
(iii) known or projected changes to future loads;
and
(iv) growth forecasts by customer class.
(2) Analysis of the impact of any demand side and
renewable energy initiatives. This analysis shall include:
(i) the impact of demand response programs and
energy efficiency programs, both current and
projected; for small multi-jurisdictional utilities,
the impact of demand response and energy efficiency
programs approved pursuant to Section 8-408 of this
Act, both current and projected; and
(ii) supply side needs that are projected to be
offset by purchases of renewable energy resources, if

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any.
(3) A plan for meeting the expected load requirements
that will not be met through preexisting contracts. This
plan shall include:
(i) definitions of the different Illinois retail
customer classes for which supply is being purchased;
(ii) the proposed mix of demand-response products
for which contracts will be executed during the next
year. For small multi-jurisdictional electric
utilities that on December 31, 2005 served fewer than
100,000 customers in Illinois, these shall be defined
as demand-response products offered in an energy
efficiency plan approved pursuant to Section 8-408 of
this Act. The cost-effective demand-response measures
shall be procured whenever the cost is lower than
procuring comparable capacity products, provided that
such products shall:
(A) be procured by a demand-response provider
from those retail customers included in the plan's
electric supply service requirements;
(B) at least satisfy the demand-response
requirements of the regional transmission
organization market in which the utility's service
territory is located, including, but not limited
to, any applicable capacity or dispatch
requirements;

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(C) provide for customers' participation in
the stream of benefits produced by the
demand-response products;
(D) provide for reimbursement by the
demand-response provider of the utility for any
costs incurred as a result of the failure of the
supplier of such products to perform its
obligations thereunder; and
(E) meet the same credit requirements as apply
to suppliers of capacity, in the applicable
regional transmission organization market;
(iii) monthly forecasted system supply
requirements, including expected minimum, maximum, and
average values for the planning period;
(iv) the proposed mix and selection of standard
wholesale products for which contracts will be
executed during the next year, separately or in
combination, to meet that portion of its load
requirements not met through pre-existing contracts,
including but not limited to monthly 5 x 16 peak period
block energy, monthly off-peak wrap energy, monthly 7
x 24 energy, annual 5 x 16 energy, annual off-peak wrap
energy, annual 7 x 24 energy, monthly capacity, annual
capacity, peak load capacity obligations, capacity
purchase plan, and ancillary services;
(v) proposed term structures for each wholesale

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product type included in the proposed procurement plan
portfolio of products; and
(vi) an assessment of the price risk, load
uncertainty, and other factors that are associated
with the proposed procurement plan; this assessment,
to the extent possible, shall include an analysis of
the following factors: contract terms, time frames for
securing products or services, fuel costs, weather
patterns, transmission costs, market conditions, and
the governmental regulatory environment; the proposed
procurement plan shall also identify alternatives for
those portfolio measures that are identified as having
significant price risk.
(4) Proposed procedures for balancing loads. The
procurement plan shall include, for load requirements
included in the procurement plan, the process for (i)
hourly balancing of supply and demand and (ii) the
criteria for portfolio re-balancing in the event of
significant shifts in load.
(5) Long-Term Renewable Resources Procurement Plan.
The Agency shall prepare a long-term renewable resources
procurement plan for the procurement of renewable energy
credits under Sections 1-56 and 1-75 of the Illinois Power
Agency Act for delivery beginning in the 2017 delivery
year.
(i) The initial long-term renewable resources

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procurement plan and all subsequent revisions shall be
subject to review and approval by the Commission. For
the purposes of this Section, "delivery year" has the
same meaning as in Section 1-10 of the Illinois Power
Agency Act. For purposes of this Section, "Agency"
shall mean the Illinois Power Agency.
(ii) The long-term renewable resources planning
process shall be conducted as follows:
(A) Electric utilities shall provide a range
of load forecasts to the Illinois Power Agency
within 45 days of the Agency's request for
forecasts, which request shall specify the length
and conditions for the forecasts including, but
not limited to, the quantity of distributed
generation expected to be interconnected for each
year.
(B) The Agency shall publish for comment the
initial long-term renewable resources procurement
plan no later than 120 days after the effective
date of this amendatory Act of the 99th General
Assembly and shall review, and may revise, the
plan at least every 2 years thereafter. To the
extent practicable, the Agency shall review and
propose any revisions to the long-term renewable
energy resources procurement plan in conjunction
with the Agency's other planning and approval

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processes conducted under this Section. The
initial long-term renewable resources procurement
plan shall:
(aa) Identify the procurement programs and
competitive procurement events consistent with
the applicable requirements of the Illinois
Power Agency Act and shall be designed to
achieve the goals set forth in subsection (c)
of Section 1-75 of that Act.
(bb) Include a schedule for procurements
for renewable energy credits from
utility-scale wind projects, utility-scale
solar projects, and brownfield site
photovoltaic projects consistent with
subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois
Power Agency Act.
(cc) Identify the process whereby the
Agency will submit to the Commission for
review and approval the proposed contracts to
implement the programs required by such plan.
Copies of the initial long-term renewable
resources procurement plan and all subsequent
revisions shall be posted and made publicly
available on the Agency's and Commission's
websites, and copies shall also be provided to

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each affected electric utility. An affected
utility and other interested parties shall have 45
days following the date of posting to provide
comment to the Agency on the initial long-term
renewable resources procurement plan and all
subsequent revisions. All comments submitted to
the Agency shall be specific, supported by data or
other detailed analyses, and, if objecting to all
or a portion of the procurement plan, accompanied
by specific alternative wording or proposals. All
comments shall be posted on the Agency's and
Commission's websites. During this 45-day comment
period, the Agency shall hold at least one public
hearing within each utility's service area that is
subject to the requirements of this paragraph (5)
for the purpose of receiving public comment.
Within 21 days following the end of the 45-day
review period, the Agency may revise the long-term
renewable resources procurement plan based on the
comments received and shall file the plan with the
Commission for review and approval.
(C) Within 14 days after the filing of the
initial long-term renewable resources procurement
plan or any subsequent revisions, any person
objecting to the plan may file an objection with
the Commission. Within 21 days after the filing of

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the plan, the Commission shall determine whether a
hearing is necessary. The Commission shall enter
its order confirming or modifying the initial
long-term renewable resources procurement plan or
any subsequent revisions within 120 days after the
filing of the plan by the Illinois Power Agency.
(D) The Commission shall approve the initial
long-term renewable resources procurement plan and
any subsequent revisions, including expressly the
forecast used in the plan and taking into account
that funding will be limited to the amount of
revenues actually collected by the utilities, if
the Commission determines that the plan will
reasonably and prudently accomplish the
requirements of Section 1-56 and subsection (c) of
Section 1-75 of the Illinois Power Agency Act. The
Commission shall also approve the process for the
submission, review, and approval of the proposed
contracts to procure renewable energy credits or
implement the programs authorized by the
Commission pursuant to a long-term renewable
resources procurement plan approved under this
Section.
(iii) The Agency or third parties contracted by
the Agency shall implement all programs authorized by
the Commission in an approved long-term renewable

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resources procurement plan without further review and
approval by the Commission. Third parties shall not
begin implementing any programs or receive any payment
under this Section until the Commission has approved
the contract or contracts under the process authorized
by the Commission in item (D) of subparagraph (ii) of
paragraph (5) of this subsection (b) and the third
party and the Agency or utility, as applicable, have
executed the contract. For those renewable energy
credits subject to procurement through a competitive
bid process under the plan or under the initial
forward procurements for wind and solar resources
described in subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois Power
Agency Act, the Agency shall follow the procurement
process specified in the provisions relating to
electricity procurement in subsections (e) through (i)
of this Section.
(iv) An electric utility shall recover its costs
associated with the procurement of renewable energy
credits under this Section and pursuant to subsection
(c-5) of Section 1-75 of the Illinois Power Agency Act
through an automatic adjustment clause tariff or
tariffs under subsection (k) or subsection (i-5) of
Section 16-108 of this Act, as applicable. A utility
shall not be required to advance any payment or pay any

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amounts under this Section that exceed the actual
amount of revenues collected by the utility under
paragraph (6) of subsection (c) of Section 1-75 of the
Illinois Power Agency Act, subsection (c-5) of Section
1-75 of the Illinois Power Agency Act, and subsection
(k) or subsection (i-5) of Section 16-108 of this Act,
as applicable, and contracts executed under this
Section shall expressly incorporate this limitation.
(v) For the public interest, safety, and welfare,
the Agency and the Commission may adopt rules to carry
out the provisions of this Section on an emergency
basis immediately following the effective date of this
amendatory Act of the 99th General Assembly.
(vi) On or before July 1 of each year, the
Commission shall hold an informal hearing for the
purpose of receiving comments on the prior year's
procurement process and any recommendations for
change.
(b-5) An electric utility that as of January 1, 2019
served more than 300,000 retail customers in this State shall
purchase renewable energy credits from new renewable energy
resources constructed at or adjacent to the sites of
coal-fueled electric generating facilities in this State in
accordance with subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act. Except as expressly provided in
this Section, the plans and procedures for such procurements

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shall not be included in the procurement plans provided for in
this Section, but rather shall be conducted and implemented
solely in accordance with subsection (c-5) of Section 1-75 of
the Illinois Power Agency Act.
(c) The provisions of this subsection (c) shall not apply
to procurements conducted pursuant to subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act. However, the
Agency may retain a procurement administrator to assist the
Agency in planning and carrying out the procurement event and
implementing the other requirements specified in subsection
(c-5) of Section 1-75 of the Illinois Power Agency Act, with
the costs incurred by the Agency for the procurement
administrator to be recovered through fees charged to
applicants for selection to sell and deliver renewable energy
credits to electric utilities pursuant to such subsection
(c-5). The procurement process set forth in Section 1-75 of
the Illinois Power Agency Act and subsection (e) of this
Section shall be administered by a procurement administrator
and monitored by a procurement monitor.
(1) The procurement administrator shall:
(i) design the final procurement process in
accordance with Section 1-75 of the Illinois Power
Agency Act and subsection (e) of this Section
following Commission approval of the procurement plan;
(ii) develop benchmarks in accordance with
subsection (e)(3) to be used to evaluate bids;

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these benchmarks shall be submitted to the
Commission for review and approval on a
confidential basis prior to the procurement event;
(iii) serve as the interface between the electric
utility and suppliers;
(iv) manage the bidder pre-qualification and
registration process;
(v) obtain the electric utilities' agreement to
the final form of all supply contracts and credit
collateral agreements;
(vi) administer the request for proposals process;
(vii) have the discretion to negotiate to
determine whether bidders are willing to lower the
price of bids that meet the benchmarks approved by the
Commission; any post-bid negotiations with bidders
shall be limited to price only and shall be completed
within 24 hours after opening the sealed bids and
shall be conducted in a fair and unbiased manner; in
conducting the negotiations, there shall be no
disclosure of any information derived from proposals
submitted by competing bidders; if information is
disclosed to any bidder, it shall be provided to all
competing bidders;
(viii) maintain confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;

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(ix) submit a confidential report to the
Commission recommending acceptance or rejection of
bids;
(x) notify the utility of contract counterparties
and contract specifics; and
(xi) administer related contingency procurement
events.
(2) The procurement monitor, who shall be retained by
the Commission, shall:
(i) monitor interactions among the procurement
administrator, suppliers, and utility;
(ii) monitor and report to the Commission on the
progress of the procurement process;
(iii) provide an independent confidential report
to the Commission regarding the results of the
procurement event;
(iv) assess compliance with the procurement plans
approved by the Commission for each utility that on
December 31, 2005 provided electric service to at
least 100,000 customers in Illinois and for each small
multi-jurisdictional utility that on December 31, 2005
served less than 100,000 customers in Illinois;
(v) preserve the confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(vi) provide expert advice to the Commission and

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consult with the procurement administrator regarding
issues related to procurement process design, rules,
protocols, and policy-related matters; and
(vii) consult with the procurement administrator
regarding the development and use of benchmark
criteria, standard form contracts, credit policies,
and bid documents.
(d) Except as provided in subsection (j), the planning
process shall be conducted as follows:
(1) Beginning in 2008, each Illinois utility procuring
power pursuant to this Section shall annually provide a
range of load forecasts to the Illinois Power Agency by
July 15 of each year, or such other date as may be required
by the Commission or Agency. The load forecasts shall
cover the 5-year procurement planning period for the next
procurement plan and shall include hourly data
representing a high-load, low-load, and expected-load
scenario for the load of those retail customers included
in the plan's electric supply service requirements. The
utility shall provide supporting data and assumptions for
each of the scenarios.
(2) Beginning in 2008, the Illinois Power Agency shall
prepare a procurement plan by August 15th of each year, or
such other date as may be required by the Commission. The
procurement plan shall identify the portfolio of
demand-response and power and energy products to be

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procured. Cost-effective demand-response measures shall be
procured as set forth in item (iii) of subsection (b) of
this Section. Copies of the procurement plan shall be
posted and made publicly available on the Agency's and
Commission's websites, and copies shall also be provided
to each affected electric utility. An affected utility
shall have 30 days following the date of posting to
provide comment to the Agency on the procurement plan.
Other interested entities also may comment on the
procurement plan. All comments submitted to the Agency
shall be specific, supported by data or other detailed
analyses, and, if objecting to all or a portion of the
procurement plan, accompanied by specific alternative
wording or proposals. All comments shall be posted on the
Agency's and Commission's websites. During this 30-day
comment period, the Agency shall hold at least one public
hearing within each utility's service area for the purpose
of receiving public comment on the procurement plan.
Within 14 days following the end of the 30-day review
period, the Agency shall revise the procurement plan as
necessary based on the comments received and file the
procurement plan with the Commission and post the
procurement plan on the websites.
(3) Within 5 days after the filing of the procurement
plan, any person objecting to the procurement plan shall
file an objection with the Commission. Within 10 days

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after the filing, the Commission shall determine whether a
hearing is necessary. The Commission shall enter its order
confirming or modifying the procurement plan within 90
days after the filing of the procurement plan by the
Illinois Power Agency.
(4) The Commission shall approve the procurement plan,
including expressly the forecast used in the procurement
plan, if the Commission determines that it will ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability.
(4.5) The Commission shall review and approve the
Agency's recommendation for the selection of applicants to
enter into long-term contracts for the sale and delivery
of renewable energy credits from new renewable energy
resources to be constructed at or adjacent to the sites of
coal-fueled electric generating facilities in this State
in accordance with the provisions of subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act, if the
Commission determines that the applicants recommended by
the Agency for selection, the proposed new renewable
energy resources to be constructed, the amounts of
renewable energy credits to be delivered pursuant to such
contracts, and the other terms of the contracts, are
consistent with the requirements of subsection (c-5) of

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Section 1-75 of the Illinois Power Agency Act.
(e) The procurement process shall include each of the
following components:
(1) Solicitation, pre-qualification, and registration
of bidders. The procurement administrator shall
disseminate information to potential bidders to promote a
procurement event, notify potential bidders that the
procurement administrator may enter into a post-bid price
negotiation with bidders that meet the applicable
benchmarks, provide supply requirements, and otherwise
explain the competitive procurement process. In addition
to such other publication as the procurement administrator
determines is appropriate, this information shall be
posted on the Illinois Power Agency's and the Commission's
websites. The procurement administrator shall also
administer the prequalification process, including
evaluation of credit worthiness, compliance with
procurement rules, and agreement to the standard form
contract developed pursuant to paragraph (2) of this
subsection (e). The procurement administrator shall then
identify and register bidders to participate in the
procurement event.
(2) Standard contract forms and credit terms and
instruments. The procurement administrator, in
consultation with the utilities, the Commission, and other
interested parties and subject to Commission oversight,

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shall develop and provide standard contract forms for the
supplier contracts that meet generally accepted industry
practices. Standard credit terms and instruments that meet
generally accepted industry practices shall be similarly
developed. The procurement administrator shall make
available to the Commission all written comments it
receives on the contract forms, credit terms, or
instruments. If the procurement administrator cannot reach
agreement with the applicable electric utility as to the
contract terms and conditions, the procurement
administrator must notify the Commission of any disputed
terms and the Commission shall resolve the dispute. The
terms of the contracts shall not be subject to negotiation
by winning bidders, and the bidders must agree to the
terms of the contract in advance so that winning bids are
selected solely on the basis of price.
(3) Establishment of a market-based price benchmark.
As part of the development of the procurement process, the
procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor, shall establish benchmarks for evaluating the
final prices in the contracts for each of the products
that will be procured through the procurement process. The
benchmarks shall be based on price data for similar
products for the same delivery period and same delivery
hub, or other delivery hubs after adjusting for that

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difference. The price benchmarks may also be adjusted to
take into account differences between the information
reflected in the underlying data sources and the specific
products and procurement process being used to procure
power for the Illinois utilities. The benchmarks shall be
confidential but shall be provided to, and will be subject
to Commission review and approval, prior to a procurement
event.
(4) Request for proposals competitive procurement
process. The procurement administrator shall design and
issue a request for proposals to supply electricity in
accordance with each utility's procurement plan, as
approved by the Commission. The request for proposals
shall set forth a procedure for sealed, binding commitment
bidding with pay-as-bid settlement, and provision for
selection of bids on the basis of price.
(5) A plan for implementing contingencies in the event
of supplier default or failure of the procurement process
to fully meet the expected load requirement due to
insufficient supplier participation, Commission rejection
of results, or any other cause.
(i) Event of supplier default: In the event of
supplier default, the utility shall review the
contract of the defaulting supplier to determine if
the amount of supply is 200 megawatts or greater, and
if there are more than 60 days remaining of the

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contract term. If both of these conditions are met,
and the default results in termination of the
contract, the utility shall immediately notify the
Illinois Power Agency that a request for proposals
must be issued to procure replacement power, and the
procurement administrator shall run an additional
procurement event. If the contracted supply of the
defaulting supplier is less than 200 megawatts or
there are less than 60 days remaining of the contract
term, the utility shall procure power and energy from
the applicable regional transmission organization
market, including ancillary services, capacity, and
day-ahead or real time energy, or both, for the
duration of the contract term to replace the
contracted supply; provided, however, that if a needed
product is not available through the regional
transmission organization market it shall be purchased
from the wholesale market.
(ii) Failure of the procurement process to fully
meet the expected load requirement: If the procurement
process fails to fully meet the expected load
requirement due to insufficient supplier participation
or due to a Commission rejection of the procurement
results, the procurement administrator, the
procurement monitor, and the Commission staff shall
meet within 10 days to analyze potential causes of low

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supplier interest or causes for the Commission
decision. If changes are identified that would likely
result in increased supplier participation, or that
would address concerns causing the Commission to
reject the results of the prior procurement event, the
procurement administrator may implement those changes
and rerun the request for proposals process according
to a schedule determined by those parties and
consistent with Section 1-75 of the Illinois Power
Agency Act and this subsection. In any event, a new
request for proposals process shall be implemented by
the procurement administrator within 90 days after the
determination that the procurement process has failed
to fully meet the expected load requirement.
(iii) In all cases where there is insufficient
supply provided under contracts awarded through the
procurement process to fully meet the electric
utility's load requirement, the utility shall meet the
load requirement by procuring power and energy from
the applicable regional transmission organization
market, including ancillary services, capacity, and
day-ahead or real time energy, or both; provided,
however, that if a needed product is not available
through the regional transmission organization market
it shall be purchased from the wholesale market.
(6) The procurement processes process described in

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this subsection and in subsection (c-5) of Section 1-75 of
the Illinois Power Agency Act are is exempt from the
requirements of the Illinois Procurement Code, pursuant to
Section 20-10 of that Code.
(f) Within 2 business days after opening the sealed bids,
the procurement administrator shall submit a confidential
report to the Commission. The report shall contain the results
of the bidding for each of the products along with the
procurement administrator's recommendation for the acceptance
and rejection of bids based on the price benchmark criteria
and other factors observed in the process. The procurement
monitor also shall submit a confidential report to the
Commission within 2 business days after opening the sealed
bids. The report shall contain the procurement monitor's
assessment of bidder behavior in the process as well as an
assessment of the procurement administrator's compliance with
the procurement process and rules. The Commission shall review
the confidential reports submitted by the procurement
administrator and procurement monitor, and shall accept or
reject the recommendations of the procurement administrator
within 2 business days after receipt of the reports.
(g) Within 3 business days after the Commission decision
approving the results of a procurement event, the utility
shall enter into binding contractual arrangements with the
winning suppliers using the standard form contracts; except
that the utility shall not be required either directly or

HB3446 - 164 - LRB102 16951 SPS 22368 b
indirectly to execute the contracts if a tariff that is
consistent with subsection (l) of this Section has not been
approved and placed into effect for that utility.
(h) The names of the successful bidders and the load
weighted average of the winning bid prices for each contract
type and for each contract term shall be made available to the
public at the time of Commission approval of a procurement
event. The Commission, the procurement monitor, the
procurement administrator, the Illinois Power Agency, and all
participants in the procurement process shall maintain the
confidentiality of all other supplier and bidding information
in a manner consistent with all applicable laws, rules,
regulations, and tariffs. Confidential information, including
the confidential reports submitted by the procurement
administrator and procurement monitor pursuant to subsection
(f) of this Section, shall not be made publicly available and
shall not be discoverable by any party in any proceeding,
absent a compelling demonstration of need, nor shall those
reports be admissible in any proceeding other than one for law
enforcement purposes.
(i) Within 2 business days after a Commission decision
approving the results of a procurement event or such other
date as may be required by the Commission from time to time,
the utility shall file for informational purposes with the
Commission its actual or estimated retail supply charges, as
applicable, by customer supply group reflecting the costs

HB3446 - 165 - LRB102 16951 SPS 22368 b
associated with the procurement and computed in accordance
with the tariffs filed pursuant to subsection (l) of this
Section and approved by the Commission.
(j) Within 60 days following August 28, 2007 (the
effective date of Public Act 95-481), each electric utility
that on December 31, 2005 provided electric service to at
least 100,000 customers in Illinois shall prepare and file
with the Commission an initial procurement plan, which shall
conform in all material respects to the requirements of the
procurement plan set forth in subsection (b); provided,
however, that the Illinois Power Agency Act shall not apply to
the initial procurement plan prepared pursuant to this
subsection. The initial procurement plan shall identify the
portfolio of power and energy products to be procured and
delivered for the period June 2008 through May 2009, and shall
identify the proposed procurement administrator, who shall
have the same experience and expertise as is required of a
procurement administrator hired pursuant to Section 1-75 of
the Illinois Power Agency Act. Copies of the procurement plan
shall be posted and made publicly available on the
Commission's website. The initial procurement plan may include
contracts for renewable resources that extend beyond May 2009.
(i) Within 14 days following filing of the initial
procurement plan, any person may file a detailed objection
with the Commission contesting the procurement plan
submitted by the electric utility. All objections to the

HB3446 - 166 - LRB102 16951 SPS 22368 b
electric utility's plan shall be specific, supported by
data or other detailed analyses. The electric utility may
file a response to any objections to its procurement plan
within 7 days after the date objections are due to be
filed. Within 7 days after the date the utility's response
is due, the Commission shall determine whether a hearing
is necessary. If it determines that a hearing is
necessary, it shall require the hearing to be completed
and issue an order on the procurement plan within 60 days
after the filing of the procurement plan by the electric
utility.
(ii) The order shall approve or modify the procurement
plan, approve an independent procurement administrator,
and approve or modify the electric utility's tariffs that
are proposed with the initial procurement plan. The
Commission shall approve the procurement plan if the
Commission determines that it will ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability.
(k) (Blank).
(k-5) (Blank).
(l) An electric utility shall recover its costs incurred
under this Section and subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act, including, but not limited to, the
costs of procuring power and energy demand-response resources

HB3446 - 167 - LRB102 16951 SPS 22368 b
under this Section and its costs for purchasing renewable
energy credits pursuant to subsection (c-5) of Section 1-75 of
the Illinois Power Agency Act. The utility shall file with the
initial procurement plan its proposed tariffs through which
its costs of procuring power that are incurred pursuant to a
Commission-approved procurement plan and those other costs
identified in this subsection (l), will be recovered. The
tariffs shall include a formula rate or charge designed to
pass through both the costs incurred by the utility in
procuring a supply of electric power and energy for the
applicable customer classes with no mark-up or return on the
price paid by the utility for that supply, plus any just and
reasonable costs that the utility incurs in arranging and
providing for the supply of electric power and energy. The
formula rate or charge shall also contain provisions that
ensure that its application does not result in over or under
recovery due to changes in customer usage and demand patterns,
and that provide for the correction, on at least an annual
basis, of any accounting errors that may occur. A utility
shall recover through the tariff all reasonable costs incurred
to implement or comply with any procurement plan that is
developed and put into effect pursuant to Section 1-75 of the
Illinois Power Agency Act and this Section, and for the
procurement of renewable energy credits pursuant to subsection
(c-5) of Section 1-75 of the Illinois Power Agency Act,
including any fees assessed by the Illinois Power Agency,

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costs associated with load balancing, and contingency plan
costs. The electric utility shall also recover its full costs
of procuring electric supply for which it contracted before
the effective date of this Section in conjunction with the
provision of full requirements service under fixed-price
bundled service tariffs subsequent to December 31, 2006. All
such costs shall be deemed to have been prudently incurred.
The pass-through tariffs that are filed and approved pursuant
to this Section shall not be subject to review under, or in any
way limited by, Section 16-111(i) of this Act. All of the costs
incurred by the electric utility associated with the purchase
of zero emission credits in accordance with subsection (d-5)
of Section 1-75 of the Illinois Power Agency Act and,
beginning June 1, 2017, all of the costs incurred by the
electric utility associated with the purchase of renewable
energy resources in accordance with Sections 1-56 and 1-75 of
the Illinois Power Agency Act, and all of the costs incurred by
the electric utility in purchasing renewable energy credits in
accordance with subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act, shall be recovered through the
electric utility's tariffed charges applicable to all of its
retail customers, as specified in subsection (k) or subsection
(i-5), as applicable, of Section 16-108 of this Act, and shall
not be recovered through the electric utility's tariffed
charges for electric power and energy supply to its eligible
retail customers.

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(m) The Commission has the authority to adopt rules to
carry out the provisions of this Section. For the public
interest, safety, and welfare, the Commission also has
authority to adopt rules to carry out the provisions of this
Section on an emergency basis immediately following August 28,
2007 (the effective date of Public Act 95-481).
(n) Notwithstanding any other provision of this Act, any
affiliated electric utilities that submit a single procurement
plan covering their combined needs may procure for those
combined needs in conjunction with that plan, and may enter
jointly into power supply contracts, purchases, and other
procurement arrangements, and allocate capacity and energy and
cost responsibility therefor among themselves in proportion to
their requirements.
(o) On or before June 1 of each year, the Commission shall
hold an informal hearing for the purpose of receiving comments
on the prior year's procurement process and any
recommendations for change.
(p) An electric utility subject to this Section may
propose to invest, lease, own, or operate an electric
generation facility as part of its procurement plan, provided
the utility demonstrates that such facility is the least-cost
option to provide electric service to those retail customers
included in the plan's electric supply service requirements.
If the facility is shown to be the least-cost option and is
included in a procurement plan prepared in accordance with

HB3446 - 170 - LRB102 16951 SPS 22368 b
Section 1-75 of the Illinois Power Agency Act and this
Section, then the electric utility shall make a filing
pursuant to Section 8-406 of this Act, and may request of the
Commission any statutory relief required thereunder. If the
Commission grants all of the necessary approvals for the
proposed facility, such supply shall thereafter be considered
as a pre-existing contract under subsection (b) of this
Section. The Commission shall in any order approving a
proposal under this subsection specify how the utility will
recover the prudently incurred costs of investing in, leasing,
owning, or operating such generation facility through just and
reasonable rates charged to those retail customers included in
the plan's electric supply service requirements. Cost recovery
for facilities included in the utility's procurement plan
pursuant to this subsection shall not be subject to review
under or in any way limited by the provisions of Section
16-111(i) of this Act. Nothing in this Section is intended to
prohibit a utility from filing for a fuel adjustment clause as
is otherwise permitted under Section 9-220 of this Act.
(q) If the Illinois Power Agency filed with the
Commission, under Section 16-111.5 of this Act, its proposed
procurement plan for the period commencing June 1, 2017, and
the Commission has not yet entered its final order approving
the plan on or before the effective date of this amendatory Act
of the 99th General Assembly, then the Illinois Power Agency
shall file a notice of withdrawal with the Commission, after

HB3446 - 171 - LRB102 16951 SPS 22368 b
the effective date of this amendatory Act of the 99th General
Assembly, to withdraw the proposed procurement of renewable
energy resources to be approved under the plan, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices using funds previously
collected from electric utilities' retail customers that take
service pursuant to electric utilities' hourly pricing tariff
or tariffs and, for an electric utility that serves less than
100,000 retail customers in the State, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices. Upon receipt of the
notice, the Commission shall enter an order that approves the
withdrawal of the proposed procurement of renewable energy
resources from the plan. The initially proposed procurement of
renewable energy resources shall not be approved or be the
subject of any further hearing, investigation, proceeding, or
order of any kind.
This amendatory Act of the 99th General Assembly preempts
and supersedes any order entered by the Commission that
approved the Illinois Power Agency's procurement plan for the
period commencing June 1, 2017, to the extent it is
inconsistent with the provisions of this amendatory Act of the
99th General Assembly. To the extent any previously entered
order approved the procurement of renewable energy resources,
the portion of that order approving the procurement shall be
void, other than the procurement of renewable energy credits

HB3446 - 172 - LRB102 16951 SPS 22368 b
from distributed renewable energy generation devices using
funds previously collected from electric utilities' retail
customers that take service under electric utilities' hourly
pricing tariff or tariffs and, for an electric utility that
serves less than 100,000 retail customers in the State, other
than the procurement of renewable energy credits for
distributed renewable energy generation devices.
(Source: P.A. 99-906, eff. 6-1-17.)
Section 99. Effective date. This Act takes effect upon
becoming law.