SB 2814: Future Energy Jobs Act (Public Act 099-0906)

Public Act 0906 99TH GENERAL ASSEMBLY Public Act 099-0906 SB2814 Enrolled LRB099 19990 EGJ 44389 b `` AN ACT concerning regulation. ```Be it enacted by the People of the State of Illinois,` `represented in the General Assembly:` ` Section 1.``Findings.` (a) In 2011, the General Assembly encouraged and enabled` `the State's largest electric utilities to undertake` `substantial investment to refurbish, rebuild, modernize, and` `expand Illinois' century-old electric grid. Among those` `investments were the deployment of a smart grid and advanced` `metering infrastructure platform that would be accessible to` `all retail customers through new, digital smart meters. This` `investment, now well underway, not only allows utilities to` `continue to provide safe, reliable, and affordable service to` `the State's current and future utility customers, but also` `empowers the citizens of this State to directly access and` `participate in the rapidly emerging clean energy economy while` `also presenting them with unprecedented choices in their source` `of energy supply and pricing.` To ensure that the State and its citizens, including` `low-income citizens, are equipped to enjoy the opportunities` `and benefits of the smart grid and evolving clean energy` `marketplace, the General Assembly finds and declares that` `Illinois should continue in its efforts to build the grid of` `the future using the smart grid and advanced metering` `infrastructure platform, as well as maximize the impact of the` `State's existing energy efficiency and renewable energy` `portfolio standards. Specifically, the Generally Assembly` `finds that:` ``(1) the State should encourage: the adoption and` `deployment of cost-effective distributed energy resource` `technologies and devices, such as photovoltaics, which can` `encourage private investment in renewable energy` `resources, stimulate economic growth, enhance the` `continued diversification of Illinois' energy resource` `mix, and protect the Illinois environment; investment in` `renewable energy resources, including, but not limited to,` `photovoltaic distributed generation, which should benefit` `all citizens of the State, including low-income` `households; and` ``(2) the State's existing energy efficiency standard` `should be updated to ensure that customers continue to` `realize increased value, to incorporate and optimize` `measures enabled by the smart grid, including voltage` `optimization measures, and to provide incentives for` `electric utilities to achieve the energy savings goals.` (b) The General Assembly finds that low-income customers` `should be included within the State's efforts to expand the use` `of distributed generation technologies and devices.` Section 1.5.``Zero emission standard legislative findings.` `The General Assembly finds and declares:` ``(1) Reducing emissions of carbon dioxide and other air` `pollutants, such as sulfur oxides, nitrogen oxides, and` `particulate matter, is critical to improving air quality in` `Illinois for Illinois residents.` ``(2) Sulfur oxides, nitrogen oxides, and particulate` `emissions have significant adverse health effects on` `persons exposed to them, and carbon dioxide emissions` `result in climate change trends that could significantly` `adversely impact Illinois.` ``(3) The existing renewable portfolio standard has been` `successful in promoting the growth of renewable energy` `generation to reduce air pollution in Illinois. However, to` `achieve its environmental goals, Illinois must expand its` `commitment to zero emission energy generation and value the` `environmental attributes of zero emission generation that` `currently falls outside the scope of the existing renewable` `portfolio standard, including, but not limited to, nuclear` `power.` ``(4) Preserving existing zero emission energy` `generation and promoting new zero emission energy` `generation is vital to placing the State on a glide path to` `achieving its environmental goals and ensuring that air` `quality in Illinois continues to improve.` ``(5) The Illinois Commerce Commission, the Illinois` `Power Agency, the Illinois Environmental Protection` `Agency, and the Department of Commerce and Economic` `Opportunity issued a report dated January 5, 2015 titled` `"Potential Nuclear Power Plant Closings in Illinois" (the` `Report), which addressed the issues identified by Illinois` `House Resolution 1146 of the 98th General Assembly, which,` `among other things, urged the Illinois Environmental` `Protection Agency to prepare a report showing how the` `premature closure of existing nuclear power plants in` `Illinois will affect the societal cost of increased` `greenhouse gas emissions based upon the Environmental` `Protection Agency's published societal cost of greenhouse` `gases.` ``(6) The Report also included analysis from PJM` `Interconnection, LLC, which identified significant adverse` `consequences for electric reliability, including` `significant voltage and thermal violations in the` `interstate transmission network, in the event that` `Illinois' existing nuclear facilities close prematurely.` `The Report also found that nuclear power plants are among` `the most reliable sources of energy, which means that` `electricity from nuclear power plants is available on the` `electric grid all hours of the day and when needed, thereby` `always reducing carbon emissions.` ``(7) Illinois House Resolution 1146 further urged that` `the Report make findings concerning potential market-based` `solutions that will ensure that the premature closure of` `these nuclear power plants does not occur and that the` `associated dire consequences to the environment, electric` `reliability, and the regional economy are averted.` ``(8) The Report identified potential market-based` `solutions that will ensure that the premature closure of` `these nuclear power plants does not occur and that the` `associated dire consequences to the environment, electric` `reliability, and the regional economy are averted.` The General Assembly further finds that the Social Cost of` `Carbon is an appropriate valuation of the environmental` `benefits provided by zero emission facilities, provided that` `the valuation is subject to a price adjustment that can reduce` `the price for zero emission credits below the Social Cost of` `Carbon. This will ensure that the procurement of zero emission` `credits remains affordable for retail customers even if energy` `and capacity prices are projected to rise above 2016 levels` `reflected in the baseline market price index.` The General Assembly therefore finds that it is necessary` `to establish and implement a zero emission standard, which will` `increase the State's reliance on zero emission energy through` `the procurement of zero emission credits from zero emission` `facilities, in order to achieve the State's environmental` `objectives and reduce the adverse impact of emitted air` `pollutants on the health and welfare of the State's citizens.` Section 3.``The Illinois Administrative Procedure Act is` `amended by changing Section 5-45 as follows:` (5 ILCS 100/5-45) `(from Ch. 127, par. 1005-45)` Sec. 5-45.``Emergency rulemaking.` (a) "Emergency" means the existence of any situation that` `any agency finds reasonably constitutes a threat to the public` `interest, safety, or welfare.` (b) If any agency finds that an emergency exists that` `requires adoption of a rule upon fewer days than is required by` `Section 5-40 and states in writing its reasons for that` `finding, the agency may adopt an emergency rule without prior` `notice or hearing upon filing a notice of emergency rulemaking` `with the Secretary of State under Section 5-70. The notice` `shall include the text of the emergency rule and shall be` `published in the Illinois Register. Consent orders or other` `court orders adopting settlements negotiated by an agency may` `be adopted under this Section. Subject to applicable` `constitutional or statutory provisions, an emergency rule` `becomes effective immediately upon filing under Section 5-65 or` `at a stated date less than 10 days thereafter. The agency's` `finding and a statement of the specific reasons for the finding` `shall be filed with the rule. The agency shall take reasonable` `and appropriate measures to make emergency rules known to the` `persons who may be affected by them.` (c) An emergency rule may be effective for a period of not` `longer than 150 days, but the agency's authority to adopt an` `identical rule under Section 5-40 is not precluded. No` `emergency rule may be adopted more than once in any``24-month `24` `month``period, except that this limitation on the number of` `emergency rules that may be adopted in a``24-month `24 month `period does not apply to (i) emergency rules that make` `additions to and deletions from the Drug Manual under Section` `5-5.16 of the Illinois Public Aid Code or the generic drug` `formulary under Section 3.14 of the Illinois Food, Drug and` `Cosmetic Act, (ii) emergency rules adopted by the Pollution` `Control Board before July 1, 1997 to implement portions of the` `Livestock Management Facilities Act, (iii) emergency rules` `adopted by the Illinois Department of Public Health under` `subsections (a) through (i) of Section 2 of the Department of` `Public Health Act when necessary to protect the public's` `health, (iv) emergency rules adopted pursuant to subsection (n)` `of this Section, (v) emergency rules adopted pursuant to` `subsection (o) of this Section, or (vi) emergency rules adopted` `pursuant to subsection (c-5) of this Section. Two or more` `emergency rules having substantially the same purpose and` `effect shall be deemed to be a single rule for purposes of this` `Section.` (c-5) To facilitate the maintenance of the program of group` `health benefits provided to annuitants, survivors, and retired` `employees under the State Employees Group Insurance Act of` `1971, rules to alter the contributions to be paid by the State,` `annuitants, survivors, retired employees, or any combination` `of those entities, for that program of group health benefits,` `shall be adopted as emergency rules. The adoption of those` `rules shall be considered an emergency and necessary for the` `public interest, safety, and welfare.` (d) In order to provide for the expeditious and timely` `implementation of the State's fiscal year 1999 budget,` `emergency rules to implement any provision of Public Act 90-587` `or 90-588 or any other budget initiative for fiscal year 1999` `may be adopted in accordance with this Section by the agency` `charged with administering that provision or initiative,` `except that the 24-month limitation on the adoption of` `emergency rules and the provisions of Sections 5-115 and 5-125` `do not apply to rules adopted under this subsection (d). The` `adoption of emergency rules authorized by this subsection (d)` `shall be deemed to be necessary for the public interest,` `safety, and welfare.` (e) In order to provide for the expeditious and timely` `implementation of the State's fiscal year 2000 budget,` `emergency rules to implement any provision of Public Act 91-24` `or any other budget initiative for fiscal year 2000 may be` `adopted in accordance with this Section by the agency charged` `with administering that provision or initiative, except that` `the 24-month limitation on the adoption of emergency rules and` `the provisions of Sections 5-115 and 5-125 do not apply to` `rules adopted under this subsection (e). The adoption of` `emergency rules authorized by this subsection (e) shall be` `deemed to be necessary for the public interest, safety, and` `welfare.` (f) In order to provide for the expeditious and timely` `implementation of the State's fiscal year 2001 budget,` `emergency rules to implement any provision of Public Act 91-712` `or any other budget initiative for fiscal year 2001 may be` `adopted in accordance with this Section by the agency charged` `with administering that provision or initiative, except that` `the 24-month limitation on the adoption of emergency rules and` `the provisions of Sections 5-115 and 5-125 do not apply to` `rules adopted under this subsection (f). The adoption of` `emergency rules authorized by this subsection (f) shall be` `deemed to be necessary for the public interest, safety, and` `welfare.` (g) In order to provide for the expeditious and timely` `implementation of the State's fiscal year 2002 budget,` `emergency rules to implement any provision of Public Act 92-10` `or any other budget initiative for fiscal year 2002 may be` `adopted in accordance with this Section by the agency charged` `with administering that provision or initiative, except that` `the 24-month limitation on the adoption of emergency rules and` `the provisions of Sections 5-115 and 5-125 do not apply to` `rules adopted under this subsection (g). The adoption of` `emergency rules authorized by this subsection (g) shall be` `deemed to be necessary for the public interest, safety, and` `welfare.` (h) In order to provide for the expeditious and timely` `implementation of the State's fiscal year 2003 budget,` `emergency rules to implement any provision of Public Act 92-597` `or any other budget initiative for fiscal year 2003 may be` `adopted in accordance with this Section by the agency charged` `with administering that provision or initiative, except that` `the 24-month limitation on the adoption of emergency rules and` `the provisions of Sections 5-115 and 5-125 do not apply to` `rules adopted under this subsection (h). The adoption of` `emergency rules authorized by this subsection (h) shall be` `deemed to be necessary for the public interest, safety, and` `welfare.` (i) In order to provide for the expeditious and timely` `implementation of the State's fiscal year 2004 budget,` `emergency rules to implement any provision of Public Act 93-20` `or any other budget initiative for fiscal year 2004 may be` `adopted in accordance with this Section by the agency charged` `with administering that provision or initiative, except that` `the 24-month limitation on the adoption of emergency rules and` `the provisions of Sections 5-115 and 5-125 do not apply to` `rules adopted under this subsection (i). The adoption of` `emergency rules authorized by this subsection (i) shall be` `deemed to be necessary for the public interest, safety, and` `welfare.` (j) In order to provide for the expeditious and timely` `implementation of the provisions of the State's fiscal year` `2005 budget as provided under the Fiscal Year 2005 Budget` `Implementation (Human Services) Act, emergency rules to` `implement any provision of the Fiscal Year 2005 Budget` `Implementation (Human Services) Act may be adopted in` `accordance with this Section by the agency charged with` `administering that provision, except that the 24-month` `limitation on the adoption of emergency rules and the` `provisions of Sections 5-115 and 5-125 do not apply to rules` `adopted under this subsection (j). The Department of Public Aid` `may also adopt rules under this subsection (j) necessary to` `administer the Illinois Public Aid Code and the Children's` `Health Insurance Program Act. The adoption of emergency rules` `authorized by this subsection (j) shall be deemed to be` `necessary for the public interest, safety, and welfare.` (k) In order to provide for the expeditious and timely` `implementation of the provisions of the State's fiscal year` `2006 budget, emergency rules to implement any provision of` `Public Act 94-48 or any other budget initiative for fiscal year` `2006 may be adopted in accordance with this Section by the` `agency charged with administering that provision or` `initiative, except that the 24-month limitation on the adoption` `of emergency rules and the provisions of Sections 5-115 and` `5-125 do not apply to rules adopted under this subsection (k).` `The Department of Healthcare and Family Services may also adopt` `rules under this subsection (k) necessary to administer the` `Illinois Public Aid Code, the Senior Citizens and Persons with` `Disabilities Property Tax Relief Act, the Senior Citizens and` `Disabled Persons Prescription Drug Discount Program Act (now` `the Illinois Prescription Drug Discount Program Act), and the` `Children's Health Insurance Program Act. The adoption of` `emergency rules authorized by this subsection (k) shall be` `deemed to be necessary for the public interest, safety, and` `welfare.` (l) In order to provide for the expeditious and timely` `implementation of the provisions of the State's fiscal year` `2007 budget, the Department of Healthcare and Family Services` `may adopt emergency rules during fiscal year 2007, including` `rules effective July 1, 2007, in accordance with this` `subsection to the extent necessary to administer the` `Department's responsibilities with respect to amendments to` `the State plans and Illinois waivers approved by the federal` `Centers for Medicare and Medicaid Services necessitated by the` `requirements of Title XIX and Title XXI of the federal Social` `Security Act. The adoption of emergency rules authorized by` `this subsection (l) shall be deemed to be necessary for the` `public interest, safety, and welfare.` (m) In order to provide for the expeditious and timely` `implementation of the provisions of the State's fiscal year` `2008 budget, the Department of Healthcare and Family Services` `may adopt emergency rules during fiscal year 2008, including` `rules effective July 1, 2008, in accordance with this` `subsection to the extent necessary to administer the` `Department's responsibilities with respect to amendments to` `the State plans and Illinois waivers approved by the federal` `Centers for Medicare and Medicaid Services necessitated by the` `requirements of Title XIX and Title XXI of the federal Social` `Security Act. The adoption of emergency rules authorized by` `this subsection (m) shall be deemed to be necessary for the` `public interest, safety, and welfare.` (n) In order to provide for the expeditious and timely` `implementation of the provisions of the State's fiscal year` `2010 budget, emergency rules to implement any provision of` `Public Act 96-45 or any other budget initiative authorized by` `the 96th General Assembly for fiscal year 2010 may be adopted` `in accordance with this Section by the agency charged with` `administering that provision or initiative. The adoption of` `emergency rules authorized by this subsection (n) shall be` `deemed to be necessary for the public interest, safety, and` `welfare. The rulemaking authority granted in this subsection` `(n) shall apply only to rules promulgated during Fiscal Year` `2010.` (o) In order to provide for the expeditious and timely` `implementation of the provisions of the State's fiscal year` `2011 budget, emergency rules to implement any provision of` `Public Act 96-958 or any other budget initiative authorized by` `the 96th General Assembly for fiscal year 2011 may be adopted` `in accordance with this Section by the agency charged with` `administering that provision or initiative. The adoption of` `emergency rules authorized by this subsection (o) is deemed to` `be necessary for the public interest, safety, and welfare. The` `rulemaking authority granted in this subsection (o) applies` `only to rules promulgated on or after``July 1, 2010 (``the` `effective date of Public Act 96-958``)``through June 30, 2011.` (p) In order to provide for the expeditious and timely` `implementation of the provisions of Public Act 97-689,` `emergency rules to implement any provision of Public Act 97-689` `may be adopted in accordance with this subsection (p) by the` `agency charged with administering that provision or` `initiative. The 150-day limitation of the effective period of` `emergency rules does not apply to rules adopted under this` `subsection (p), and the effective period may continue through` `June 30, 2013. The 24-month limitation on the adoption of` `emergency rules does not apply to rules adopted under this` `subsection (p). The adoption of emergency rules authorized by` `this subsection (p) is deemed to be necessary for the public` `interest, safety, and welfare.` (q) In order to provide for the expeditious and timely` `implementation of the provisions of Articles 7, 8, 9, 11, and` `12 of Public Act 98-104, emergency rules to implement any` `provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104` `may be adopted in accordance with this subsection (q) by the` `agency charged with administering that provision or` `initiative. The 24-month limitation on the adoption of` `emergency rules does not apply to rules adopted under this` `subsection (q). The adoption of emergency rules authorized by` `this subsection (q) is deemed to be necessary for the public` `interest, safety, and welfare.` (r) In order to provide for the expeditious and timely` `implementation of the provisions of Public Act 98-651,` `emergency rules to implement Public Act 98-651 may be adopted` `in accordance with this subsection (r) by the Department of` `Healthcare and Family Services. The 24-month limitation on the` `adoption of emergency rules does not apply to rules adopted` `under this subsection (r). The adoption of emergency rules` `authorized by this subsection (r) is deemed to be necessary for` `the public interest, safety, and welfare.` (s) In order to provide for the expeditious and timely` `implementation of the provisions of Sections 5-5b.1 and 5A-2 of` `the Illinois Public Aid Code, emergency rules to implement any` `provision of Section 5-5b.1 or Section 5A-2 of the Illinois` `Public Aid Code may be adopted in accordance with this` `subsection (s) by the Department of Healthcare and Family` `Services. The rulemaking authority granted in this subsection` `(s) shall apply only to those rules adopted prior to July 1,` `2015. Notwithstanding any other provision of this Section, any` `emergency rule adopted under this subsection (s) shall only` `apply to payments made for State fiscal year 2015. The adoption` `of emergency rules authorized by this subsection (s) is deemed` `to be necessary for the public interest, safety, and welfare.` (t) In order to provide for the expeditious and timely` `implementation of the provisions of Article II of Public Act` `99-6, emergency rules to implement the changes made by Article` `II of Public Act 99-6 to the Emergency Telephone System Act may` `be adopted in accordance with this subsection (t) by the` `Department of State Police. The rulemaking authority granted in` `this subsection (t) shall apply only to those rules adopted` `prior to July 1, 2016. The 24-month limitation on the adoption` `of emergency rules does not apply to rules adopted under this` `subsection (t). The adoption of emergency rules authorized by` `this subsection (t) is deemed to be necessary for the public` `interest, safety, and welfare.` (u) In order to provide for the expeditious and timely` `implementation of the provisions of the Burn Victims Relief` `Act, emergency rules to implement any provision of the Act may` `be adopted in accordance with this subsection (u) by the` `Department of Insurance. The rulemaking authority granted in` `this subsection (u) shall apply only to those rules adopted` `prior to December 31, 2015. The adoption of emergency rules` `authorized by this subsection (u) is deemed to be necessary for` `the public interest, safety, and welfare.` (v) In order to provide for the expeditious and timely` `implementation of the provisions of``Public Act 99-516 `this` `amendatory Act of the 99th General Assembly``, emergency rules to` `implement``Public Act 99-516 `this amendatory Act of the 99th` `General Assembly``may be adopted in accordance with this` `subsection (v) by the Department of Healthcare and Family` `Services. The 24-month limitation on the adoption of emergency` `rules does not apply to rules adopted under this subsection` `(v). The adoption of emergency rules authorized by this` `subsection (v) is deemed to be necessary for the public` `interest, safety, and welfare.` (w) `(v)``In order to provide for the expeditious and timely` `implementation of the provisions of``Public Act 99-796 `this` `amendatory Act of the 99th General Assembly``, emergency rules to` `implement the changes made by``Public Act 99-796 `this amendatory` `Act of the 99th General Assembly``may be adopted in accordance` `with this subsection``(w) `(v)``by the Adjutant General. The` `adoption of emergency rules authorized by this subsection``(w) `(v)``is deemed to be necessary for the public interest, safety,` `and welfare.` (x) In order to provide for the expeditious and timely` `implementation of the provisions of this amendatory Act of the` `99th General Assembly, emergency rules to implement subsection` `(i) of Section 16-115D, subsection (g) of Section 16-128A, and` `subsection (a) of Section 16-128B of the Public Utilities Act` `may be adopted in accordance with this subsection (x) by the` `Illinois Commerce Commission. The rulemaking authority granted` `in this subsection (x) shall apply only to those rules adopted` `within 180 days after the effective date of this amendatory Act` `of the 99th General Assembly. The adoption of emergency rules` `authorized by this subsection (x) is deemed to be necessary for` `the public interest, safety, and welfare. `(Source: P.A. 98-104, eff. 7-22-13; 98-463, eff. 8-16-13;` `98-651, eff. 6-16-14; 99-2, eff. 3-26-15; 99-6, eff. 1-1-16;` `99-143, eff. 7-27-15; 99-455, eff. 1-1-16; 99-516, eff.` `6-30-16; 99-642, eff. 7-28-16; 99-796, eff. 1-1-17; revised` `9-21-16.)` Section 5.``The Illinois Power Agency Act is amended by` `changing Sections 1-5, 1-10, 1-20, 1-25, 1-56, and 1-75 as` `follows:` (20 ILCS 3855/1-5)` Sec. 1-5.``Legislative declarations and findings.``The` `General Assembly finds and declares:` ``(1) The health, welfare, and prosperity of all Illinois` `citizens require the provision of adequate, reliable,` `affordable, efficient, and environmentally sustainable` `electric service at the lowest total cost over time, taking` `into account any benefits of price stability.` ``(2)``(Blank). `The transition to retail competition is` `not complete. Some customers, especially residential and` `small commercial customers, have failed to benefit from` `lower electricity costs from retail and wholesale` `competition.` ``(3)``(Blank). `Escalating prices for electricity in` `Illinois pose a serious threat to the economic well-being,` `health, and safety of the residents of and the commerce and` `industry of the State.` ``(4)``It `To protect against this threat to economic` `well-being, health, and safety it``is necessary to improve` `the process of procuring electricity to serve Illinois` `residents, to promote investment in energy efficiency and` `demand-response measures, and to``maintain and``support` `development of clean coal technologies``, generation` `resources that operate at all hours of the day and under` `all weather conditions, zero emission facilities,``and` `renewable resources.` ``(5) Procuring a diverse electricity supply portfolio` `will ensure the lowest total cost over time for adequate,` `reliable, efficient, and environmentally sustainable` `electric service.` ``(6) Including``cost-effective``renewable resources``and` `zero emission credits from zero emission facilities``in that` `portfolio will reduce long-term direct and indirect costs` `to consumers by decreasing environmental impacts and by` `avoiding or delaying the need for new generation,` `transmission, and distribution infrastructure.``Developing` `new renewable energy resources in Illinois, including` `brownfield solar projects and community solar projects,` `will help to diversify Illinois electricity supply, avoid` `and reduce pollution, reduce peak demand, and enhance` `public health and well-being of Illinois residents. ``(7) Developing community solar projects in Illinois` `will help to expand access to renewable energy resources to` `more Illinois residents.` ``(8) Developing brownfield solar projects in Illinois` `will help return blighted or contaminated land to` `productive use while enhancing public health and the` `well-being of Illinois residents. ``(9) `(7)``Energy efficiency, demand-response measures,` `zero emission energy,``and renewable energy are resources` `currently underused in Illinois.``These resources should be` `used, when cost effective, to reduce costs to consumers,` `improve reliability, and improve environmental quality and` `public health. ``(10) `(8)``The State should encourage the use of advanced` `clean coal technologies that capture and sequester carbon` `dioxide emissions to advance environmental protection` `goals and to demonstrate the viability of coal and` `coal-derived fuels in a carbon-constrained economy.` ``(11) `(9)``The General Assembly enacted Public Act` `96-0795 to reform the State's purchasing processes,` `recognizing that government procurement is susceptible to` `abuse if structural and procedural safeguards are not in` `place to ensure independence, insulation, oversight, and` `transparency.` ``(12) `(10)``The principles that underlie the procurement` `reform legislation apply also in the context of power` `purchasing.` The General Assembly therefore finds that it is necessary` `to create the Illinois Power Agency and that the goals and` `objectives of that Agency are to accomplish each of the` `following:` ``(A) Develop electricity procurement plans to ensure` `adequate, reliable, affordable, efficient, and` `environmentally sustainable electric service at the lowest` `total cost over time, taking into account any benefits of` `price stability, for electric utilities that on December` `31, 2005 provided electric service to at least 100,000` `customers in Illinois and for small multi-jurisdictional` `electric utilities that (i) on December 31, 2005 served` `less than 100,000 customers in Illinois and (ii) request a` `procurement plan for their Illinois jurisdictional load.` `The procurement plan shall be updated on an annual basis` `and shall include renewable energy resources``and,` `beginning with the delivery year commencing June 1, 2017,` `zero emission credits from zero emission facilities `sufficient to achieve the standards specified in this Act.` ``(B) Conduct``the``competitive procurement processes` `identified in this Act `to procure the supply resources` `identified in the procurement plan``.` ``(C) Develop electric generation and co-generation` `facilities that use indigenous coal or renewable` `resources, or both, financed with bonds issued by the` `Illinois Finance Authority.` ``(D) Supply electricity from the Agency's facilities at` `cost to one or more of the following: municipal electric` `systems, governmental aggregators, or rural electric` `cooperatives in Illinois. ``(E) Ensure that the process of power procurement is` `conducted in an ethical and transparent fashion, immune` `from improper influence.` ``(F) Continue to review its policies and practices to` `determine how best to meet its mission of providing the` `lowest cost power to the greatest number of people, at any` `given point in time, in accordance with applicable law.` ``(G) Operate in a structurally insulated, independent,` `and transparent fashion so that nothing impedes the` `Agency's mission to secure power at the best prices the` `market will bear, provided that the Agency meets all` `applicable legal requirements.` ``(H) Implement renewable energy procurement and` `training programs throughout the State to diversify` `Illinois electricity supply, improve reliability, avoid` `and reduce pollution, reduce peak demand, and enhance` `public health and well-being of Illinois residents,` `including low-income residents. `(Source: P.A. 97-325, eff. 8-12-11; 97-618, eff. 10-26-11;` `97-813, eff. 7-13-12.)` ` (20 ILCS 3855/1-10) `` Sec. 1-10.``Definitions.` "Agency" means the Illinois Power Agency.` "Agency loan agreement" means any agreement pursuant to` `which the Illinois Finance Authority agrees to loan the` `proceeds of revenue bonds issued with respect to a project to` `the Agency upon terms providing for loan repayment installments` `at least sufficient to pay when due all principal of, interest` `and premium, if any, on those revenue bonds, and providing for` `maintenance, insurance, and other matters in respect of the` `project.` "Authority" means the Illinois Finance Authority.` "Brownfield site photovoltaic project" means photovoltaics` `that are:` ``(1) interconnected to an electric utility as defined in` `this Section, a municipal utility as defined in this` `Section, a public utility as defined in Section 3-105 of` `the Public Utilities Act, or an electric cooperative, as` `defined in Section 3-119 of the Public Utilities Act; and` ``(2) located at a site that is regulated by any of the` `following entities under the following programs:` `(A) the United States Environmental Protection` `Agency under the federal Comprehensive Environmental` `Response, Compensation, and Liability Act of 1980, as` `amended;` `(B) the United States Environmental Protection` `Agency under the Corrective Action Program of the` `federal Resource Conservation and Recovery Act, as` `amended;` `(C) the Illinois Environmental Protection Agency` `under the Illinois Site Remediation Program; or` `(D) the Illinois Environmental Protection Agency` `under the Illinois Solid Waste Program. "Clean coal facility" means an electric generating` `facility that uses primarily coal as a feedstock and that` `captures and sequesters carbon dioxide emissions at the` `following levels: at least 50% of the total carbon dioxide` `emissions that the facility would otherwise emit if, at the` `time construction commences, the facility is scheduled to` `commence operation before 2016, at least 70% of the total` `carbon dioxide emissions that the facility would otherwise emit` `if, at the time construction commences, the facility is` `scheduled to commence operation during 2016 or 2017, and at` `least 90% of the total carbon dioxide emissions that the` `facility would otherwise emit if, at the time construction` `commences, the facility is scheduled to commence operation` `after 2017. The power block of the clean coal facility shall` `not exceed allowable emission rates for sulfur dioxide,` `nitrogen oxides, carbon monoxide, particulates and mercury for` `a natural gas-fired combined-cycle facility the same size as` `and in the same location as the clean coal facility at the time` `the clean coal facility obtains an approved air permit. All` `coal used by a clean coal facility shall have high volatile` `bituminous rank and greater than 1.7 pounds of sulfur per` `million btu content, unless the clean coal facility does not` `use gasification technology and was operating as a conventional` `coal-fired electric generating facility on June 1, 2009 (the` `effective date of Public Act 95-1027).` "Clean coal SNG brownfield facility" means a facility that` `(1) has commenced construction by July 1, 2015 on an urban` `brownfield site in a municipality with at least 1,000,000` `residents; (2) uses a gasification process to produce` `substitute natural gas; (3) uses coal as at least 50% of the` `total feedstock over the term of any sourcing agreement with a` `utility and the remainder of the feedstock may be either` `petroleum coke or coal, with all such coal having a high` `bituminous rank and greater than 1.7 pounds of sulfur per` `million Btu content unless the facility reasonably determines` `that it is necessary to use additional petroleum coke to` `deliver additional consumer savings, in which case the facility` `shall use coal for at least 35% of the total feedstock over the` `term of any sourcing agreement; and (4) captures and sequesters` `at least 85% of the total carbon dioxide emissions that the` `facility would otherwise emit.` "Clean coal SNG facility" means a facility that uses a` `gasification process to produce substitute natural gas, that` `sequesters at least 90% of the total carbon dioxide emissions` `that the facility would otherwise emit, that uses at least 90%` `coal as a feedstock, with all such coal having a high` `bituminous rank and greater than 1.7 pounds of sulfur per` `million btu content, and that has a valid and effective permit` `to construct emission sources and air pollution control` `equipment and approval with respect to the federal regulations` `for Prevention of Significant Deterioration of Air Quality` `(PSD) for the plant pursuant to the federal Clean Air Act;` `provided, however, a clean coal SNG brownfield facility shall` `not be a clean coal SNG facility.` "Commission" means the Illinois Commerce Commission.` "Community renewable generation project" means an electric` `generating facility that: ``(1) is powered by wind, solar thermal energy,` `photovoltaic cells or panels, biodiesel, crops and` `untreated and unadulterated organic waste biomass, tree` `waste, and hydropower that does not involve new` `construction or significant expansion of hydropower dams; ``(2) is interconnected at the distribution system level` `of an electric utility as defined in this Section, a` `municipal utility as defined in this Section that owns or` `operates electric distribution facilities, a public` `utility as defined in Section 3-105 of the Public Utilities` `Act, or an electric cooperative, as defined in Section` `3-119 of the Public Utilities Act;` ``(3) credits the value of electricity generated by the` `facility to the subscribers of the facility; and` ``(4) is limited in nameplate capacity to less than or` `equal to 2,000 kilowatts. "Costs incurred in connection with the development and` `construction of a facility" means:` ``(1) the cost of acquisition of all real property,` `fixtures, and improvements in connection therewith and` `equipment, personal property, and other property, rights,` `and easements acquired that are deemed necessary for the` `operation and maintenance of the facility;` ``(2) financing costs with respect to bonds, notes, and` `other evidences of indebtedness of the Agency;` ``(3) all origination, commitment, utilization,` `facility, placement, underwriting, syndication, credit` `enhancement, and rating agency fees;` ``(4) engineering, design, procurement, consulting,` `legal, accounting, title insurance, survey, appraisal,` `escrow, trustee, collateral agency, interest rate hedging,` `interest rate swap, capitalized interest, contingency, as` `required by lenders, and other financing costs, and other` `expenses for professional services; and` ``(5) the costs of plans, specifications, site study and` `investigation, installation, surveys, other Agency costs` `and estimates of costs, and other expenses necessary or` `incidental to determining the feasibility of any project,` `together with such other expenses as may be necessary or` `incidental to the financing, insuring, acquisition, and` `construction of a specific project and starting up,` `commissioning, and placing that project in operation.` "Delivery services" has the same definition as found in` `Section 16-102 of the Public Utilities Act. "Delivery year" means the consecutive 12-month period` `beginning June 1 of a given year and ending May 31 of the` `following year. "Department" means the Department of Commerce and Economic` `Opportunity.` "Director" means the Director of the Illinois Power Agency.` "Demand-response" means measures that decrease peak` `electricity demand or shift demand from peak to off-peak` `periods.` "Distributed renewable energy generation device" means a` `device that is:` ``(1) powered by wind, solar thermal energy,` `photovoltaic cells``or `and``panels, biodiesel, crops and` `untreated and unadulterated organic waste biomass, tree` `waste, and hydropower that does not involve new` `construction or significant expansion of hydropower dams;` ``(2) interconnected at the distribution system level of` `either an electric utility as defined in this Section,``an` `alternative retail electric supplier as defined in Section` `16-102 of the Public Utilities Act,``a municipal utility as` `defined in``this``Section``that owns or operates electric` `distribution facilities `3-105 of the Public Utilities Act``,` `or a rural electric cooperative as defined in Section 3-119` `of the Public Utilities Act;` ``(3) located on the customer side of the customer's` `electric meter and is primarily used to offset that` `customer's electricity load; and` ``(4) limited in nameplate capacity to``less than or equal` `to `no more than``2,000 kilowatts.` "Energy efficiency" means measures that reduce the amount` `of electricity or natural gas``consumed in order `required``to` `achieve a given end use.``"Energy efficiency" includes voltage` `optimization measures that optimize the voltage at points on` `the electric distribution voltage system and thereby reduce` `electricity consumption by electric customers' end use` `devices.``"Energy efficiency" also includes measures that` `reduce the total Btus of electricity``, `and``natural gas``, and` `other fuels``needed to meet the end use or uses.` "Electric utility" has the same definition as found in` `Section 16-102 of the Public Utilities Act.` "Facility" means an electric generating unit or a` `co-generating unit that produces electricity along with` `related equipment necessary to connect the facility to an` `electric transmission or distribution system.` "Governmental aggregator" means one or more units of local` `government that individually or collectively procure` `electricity to serve residential retail electrical loads` `located within its or their jurisdiction.` "Local government" means a unit of local government as` `defined in Section 1 of Article VII of the Illinois` `Constitution.` "Municipality" means a city, village, or incorporated` `town.` "Municipal utility" means a public utility owned and` `operated by any subdivision or municipal corporation of this` `State. "Nameplate capacity" means the aggregate inverter` `nameplate capacity in kilowatts AC. "Person" means any natural person, firm, partnership,` `corporation, either domestic or foreign, company, association,` `limited liability company, joint stock company, or association` `and includes any trustee, receiver, assignee, or personal` `representative thereof.` "Project" means the planning, bidding, and construction of` `a facility.` "Public utility" has the same definition as found in` `Section 3-105 of the Public Utilities Act.` "Real property" means any interest in land together with` `all structures, fixtures, and improvements thereon, including` `lands under water and riparian rights, any easements,` `covenants, licenses, leases, rights-of-way, uses, and other` `interests, together with any liens, judgments, mortgages, or` `other claims or security interests related to real property.` "Renewable energy credit" means a tradable credit that` `represents the environmental attributes of``one megawatt hour `a` `certain amount``of energy produced from a renewable energy` `resource.` "Renewable energy resources" includes energy and its` `associated renewable energy credit or renewable energy credits` `from wind, solar thermal energy, photovoltaic cells and panels,` `biodiesel, anaerobic digestion, crops and untreated and` `unadulterated organic waste biomass, tree waste,``and `hydropower that does not involve new construction or` `significant expansion of hydropower dams``, and other` `alternative sources of environmentally preferable energy``. For` `purposes of this Act, landfill gas produced in the State is` `considered a renewable energy resource. "Renewable energy` `resources" does not include the incineration or burning of` `tires, garbage, general household, institutional, and` `commercial waste, industrial lunchroom or office waste,` `landscape waste other than tree waste, railroad crossties,` `utility poles, or construction or demolition debris, other than` `untreated and unadulterated waste wood.` "Retail customer" has the same definition as found in` `Section 16-102 of the Public Utilities Act. "Revenue bond" means any bond, note, or other evidence of` `indebtedness issued by the Authority, the principal and` `interest of which is payable solely from revenues or income` `derived from any project or activity of the Agency.` "Sequester" means permanent storage of carbon dioxide by` `injecting it into a saline aquifer, a depleted gas reservoir,` `or an oil reservoir, directly or through an enhanced oil` `recovery process that may involve intermediate storage,` `regardless of whether these activities are conducted by a clean` `coal facility, a clean coal SNG facility, a clean coal SNG` `brownfield facility, or a party with which a clean coal` `facility, clean coal SNG facility, or clean coal SNG brownfield` `facility has contracted for such purposes.` "Service area" has the same definition as found in Section` `16-102 of the Public Utilities Act. "Sourcing agreement" means (i) in the case of an electric` `utility, an agreement between the owner of a clean coal` `facility and such electric utility, which agreement shall have` `terms and conditions meeting the requirements of paragraph (3)` `of subsection (d) of Section 1-75, (ii) in the case of an` `alternative retail electric supplier, an agreement between the` `owner of a clean coal facility and such alternative retail` `electric supplier, which agreement shall have terms and` `conditions meeting the requirements of Section 16-115(d)(5) of` `the Public Utilities Act, and (iii) in case of a gas utility,` `an agreement between the owner of a clean coal SNG brownfield` `facility and the gas utility, which agreement shall have the` `terms and conditions meeting the requirements of subsection` `(h-1) of Section 9-220 of the Public Utilities Act.` "Subscriber" means a person who (i) takes delivery service` `from an electric utility, and (ii) has a subscription of no` `less than 200 watts to a community renewable generation project` `that is located in the electric utility's service area. No` `subscriber's subscriptions may total more than 40% of the` `nameplate capacity of an individual community renewable` `generation project. Entities that are affiliated by virtue of a` `common parent shall not represent multiple subscriptions that` `total more than 40% of the nameplate capacity of an individual` `community renewable generation project.` "Subscription" means an interest in a community renewable` `generation project expressed in kilowatts, which is sized` `primarily to offset part or all of the subscriber's electricity` `usage. "Substitute natural gas" or "SNG" means a gas manufactured` `by gasification of hydrocarbon feedstock, which is` `substantially interchangeable in use and distribution with` `conventional natural gas. "Total resource cost test" or "TRC test" means a standard` `that is met if, for an investment in energy efficiency or` `demand-response measures, the benefit-cost ratio is greater` `than one. The benefit-cost ratio is the ratio of the net` `present value of the total benefits of the program to the net` `present value of the total costs as calculated over the` `lifetime of the measures. A total resource cost test compares` `the sum of avoided electric utility costs, representing the` `benefits that accrue to the system and the participant in the` `delivery of those efficiency measures``and including avoided` `costs associated with reduced use of natural gas or other` `fuels, avoided costs associated with reduced water` `consumption, and avoided costs associated with reduced` `operation and maintenance costs``, as well as other quantifiable` `societal benefits,``including avoided natural gas utility` `costs,``to the sum of all incremental costs of end-use measures` `that are implemented due to the program (including both utility` `and participant contributions), plus costs to administer,` `deliver, and evaluate each demand-side program, to quantify the` `net savings obtained by substituting the demand-side program` `for supply resources. In calculating avoided costs of power and` `energy that an electric utility would otherwise have had to` `acquire, reasonable estimates shall be included of financial` `costs likely to be imposed by future regulations and` `legislation on emissions of greenhouse gases.``In discounting` `future societal costs and benefits for the purpose of` `calculating net present values, a societal discount rate based` `on actual, long-term Treasury bond yields should be used.` `Notwithstanding anything to the contrary, the TRC test shall` `not include or take into account a calculation of market price` `suppression effects or demand reduction induced price effects. "Utility-scale solar project" means an electric generating` `facility that:` ``(1) generates electricity using photovoltaic cells;` `and` ``(2) has a nameplate capacity that is greater than 2,000` `kilowatts. "Utility-scale wind project" means an electric generating` `facility that:` ``(1) generates electricity using wind; and` ``(2) has a nameplate capacity that is greater than 2,000` `kilowatts. "Zero emission credit" means a tradable credit that` `represents the environmental attributes of one megawatt hour of` `energy produced from a zero emission facility.` "Zero emission facility" means a facility that: (1) is` `fueled by nuclear power; and (2) is interconnected with PJM` `Interconnection, LLC or the Midcontinent Independent System` `Operator, Inc., or their successors.` `(Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-491,` `eff. 8-22-11; 97-616, eff. 10-26-11; 97-813, eff. 7-13-12;` `98-90, eff. 7-15-13.) (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 `The``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` `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. ``(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,` `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` `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 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.` ``(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` `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. 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10;` `97-96, eff. 7-13-11; 97-325, eff. 8-12-11; 97-618, eff.` `10-26-11; 97-813, eff. 7-13-12.)` (20 ILCS 3855/1-25) Sec. 1-25.``Agency subject to other laws.``Unless otherwise` `stated, the Agency is subject to the provisions of all` `applicable laws, including but not limited to, each of the` `following:` ``(1) The State Records Act.` ``(2) The Illinois Procurement Code, except that the` `Illinois Procurement Code does not apply to the hiring``or` `payment``of procurement administrators``, `or``procurement` `planning consultants``, third-party program managers, or` `other persons who will implement the programs described in` `Sections 1-56 and `pursuant to Section``1-75 of the Illinois` `Power Agency Act.` ``(3) The Freedom of Information Act.` ``(4) The State Property Control Act.` ``(5) (Blank).` ``(6) The State Officials and Employees Ethics Act. `(Source: P.A. 97-618, eff. 10-26-11.)` (20 ILCS 3855/1-56)` Sec. 1-56.``Illinois Power Agency Renewable Energy` `Resources Fund``; Illinois Solar for All Program``.` (a) The Illinois Power Agency Renewable Energy Resources` `Fund is created as a special fund in the State treasury.` (b) The Illinois Power Agency Renewable Energy Resources` `Fund shall be administered by the Agency``as described in this` `subsection (b), provided that the changes to this subsection` `(b) made by this amendatory Act of the 99th General Assembly` `shall not interfere with existing contracts under this Section. ``(1) The Illinois Power Agency Renewable Energy` `Resources Fund shall be used to purchase renewable energy` `credits according to any approved procurement plan` `developed by the Agency prior to June 1, 2017.` ``(2) The Illinois Power Agency Renewable Energy` `Resources Fund shall also be used to create the Illinois` `Solar for All Program, which shall include incentives for` `low-income distributed generation and community solar` `projects, and other associated approved expenditures. The` `objectives of the Illinois Solar for All Program are to` `bring photovoltaics to low-income communities in this` `State in a manner that maximizes the development of new` `photovoltaic generating facilities, to create a long-term,` `low-income solar marketplace throughout this State, to` `integrate, through interaction with stakeholders, with` `existing energy efficiency initiatives, and to minimize` `administrative costs. The Agency shall include a` `description of its proposed approach to the design,` `administration, implementation and evaluation of the` `Illinois Solar for All Program, as part of the long-term` `renewable resources procurement plan authorized by` `subsection (c) of Section 1-75 of this Act, and the program` `shall be designed to grow the low-income solar market. The` `Agency or utility, as applicable, shall purchase renewable` `energy credits from the (i) photovoltaic distributed` `renewable energy generation projects and (ii) community` `solar projects that are procured under procurement` `processes authorized by the long-term renewable resources` `procurement plans approved by the Commission.` ``The Illinois Solar for All Program shall include the` `program offerings described in subparagraphs (A) through` `(D) of this paragraph (2), which the Agency shall implement` `through contracts with third-party providers and, subject` `to appropriation, pay the approximate amounts identified` `using monies available in the Illinois Power Agency` `Renewable Energy Resources Fund. Each contract that` `provides for the installation of solar facilities shall` `provide that the solar facilities will produce energy and` `economic benefits, at a level determined by the Agency to` `be reasonable, for the participating low income customers.` `The monies available in the Illinois Power Agency Renewable` `Energy Resources Fund and not otherwise committed to` `contracts executed under subsection (i) of this Section` `shall be allocated among the programs described in this` `paragraph (2), as follows: 22.5% of these funds shall be` `allocated to programs described in subparagraph (A) of this` `paragraph (2), 37.5% of these funds shall be allocated to` `programs described in subparagraph (B) of this paragraph` `(2), 15% of these funds shall be allocated to programs` `described in subparagraph (C) of this paragraph (2), and` `25% of these funds, but in no event more than $50,000,000,` `shall be allocated to programs described in subparagraph` `(D) of this paragraph (2). The allocation of funds among` `subparagraphs (A), (B), or (C) of this paragraph (2) may be` `changed if the Agency or administrator, through delegated` `authority, determines incentives in subparagraphs (A),` `(B), or (C) of this paragraph (2) have not been adequately` `subscribed to fully utilize the Illinois Power Agency` `Renewable Energy Resources Fund. The determination shall` `include input through a stakeholder process. The program` `offerings described in subparagraphs (A) through (D) of` `this paragraph (2) shall also be implemented through` `contracts funded from such additional amounts as are` `allocated to one or more of the programs in the long-term` `renewable resources procurement plans as specified in` `subsection (c) of Section 1-75 of this Act and subparagraph` `(O) of paragraph (1) of such subsection (c).` ``Contracts that will be paid with funds in the Illinois` `Power Agency Renewable Energy Resources Fund shall be` `executed by the Agency. Contracts that will be paid with` `funds collected by an electric utility shall be executed by` `the electric utility.` ``Contracts under the Illinois Solar for All Program` `shall include an approach, as set forth in the long-term` `renewable resources procurement plans, to ensure the` `wholesale market value of the energy is credited to` `participating low-income customers or organizations and to` `ensure tangible economic benefits flow directly to program` `participants, except in the case of low-income` `multi-family housing where the low-income customer does` `not directly pay for energy. Priority shall be given to` `projects that demonstrate meaningful involvement of` `low-income community members in designing the initial` `proposals. Acceptable proposals to implement projects must` `demonstrate the applicant's ability to conduct initial` `community outreach, education, and recruitment of` `low-income participants in the community. Projects must` `include job training opportunities if available, and shall` `endeavor to coordinate with the job training programs` `described in paragraph (1) of subsection (a) of Section` `16-108.12 of the Public Utilities Act. `(A) Low-income distributed generation incentive.` `This program will provide incentives to low-income` `customers, either directly or through solar providers,` `to increase the participation of low-income households` `in photovoltaic on-site distributed generation.` `Companies participating in this program that install` `solar panels shall commit to hiring job trainees for a` `portion of their low-income installations, and an` `administrator shall facilitate partnering the` `companies that install solar panels with entities that` `provide solar panel installation job training. It is a` `goal of this program that a minimum of 25% of the` `incentives for this program be allocated to projects` `located within environmental justice communities.` `Contracts entered into under this paragraph may be` `entered into with an entity that will develop and` `administer the program and shall also include` `contracts for renewable energy credits from the` `photovoltaic distributed generation that is the` `subject of the program, as set forth in the long-term` `renewable resources procurement plan.` `(B) Low-Income Community Solar Project Initiative.` `Incentives shall be offered to low-income customers,` `either directly or through developers, to increase the` `participation of low-income subscribers of community` `solar projects. The developer of each project shall` `identify its partnership with community stakeholders` `regarding the location, development, and participation` `in the project, provided that nothing shall preclude a` `project from including an anchor tenant that does not` `qualify as low-income. Incentives should also be` `offered to community solar projects that are 100%` `low-income subscriber owned, which includes low-income` `households, not-for-profit organizations, and` `affordable housing owners. It is a goal of this program` `that a minimum of 25% of the incentives for this` `program be allocated to community photovoltaic` `projects in environmental justice communities.` `Contracts entered into under this paragraph may be` `entered into with developers and shall also include` `contracts for renewable energy credits related to the` `program.` `(C) Incentives for non-profits and public` `facilities. Under this program funds shall be used to` `support on-site photovoltaic distributed renewable` `energy generation devices to serve the load associated` `with not-for-profit customers and to support` `photovoltaic distributed renewable energy generation` `that uses photovoltaic technology to serve the load` `associated with public sector customers taking service` `at public buildings. It is a goal of this program that` `at least 25% of the incentives for this program be` `allocated to projects located in environmental justice` `communities. Contracts entered into under this` `paragraph may be entered into with an entity that will` `develop and administer the program or with developers` `and shall also include contracts for renewable energy` `credits related to the program.` `(D) Low-Income Community Solar Pilot Projects.` `Under this program, persons, including, but not` `limited to, electric utilities, shall propose pilot` `community solar projects. Community solar projects` `proposed under this subparagraph (D) may exceed 2,000` `kilowatts in nameplate capacity, but the amount paid` `per project under this program may not exceed` `$20,000,000. Pilot projects must result in economic` `benefits for the members of the community in which the` `project will be located. The proposed pilot project` `must include a partnership with at least one` `community-based organization. Approved pilot projects` `shall be competitively bid by the Agency, subject to` `fair and equitable guidelines developed by the Agency.` `Funding available under this subparagraph (D) may not` `be distributed solely to a utility, and at least some` `funds under this subparagraph (D) must include a` `project partnership that includes community ownership` `by the project subscribers. Contracts entered into` `under this paragraph may be entered into with an entity` `that will develop and administer the program or with` `developers and shall also include contracts for` `renewable energy credits related to the program. A` `project proposed by a utility that is implemented under` `this subparagraph (D) shall not be included in the` `utility's ratebase. ``The requirement that a qualified person, as defined in` `paragraph (1) of subsection (i) of this Section, install` `photovoltaic devices does not apply to the Illinois Solar` `for All Program described in this subsection (b). ``(3) Costs associated with the Illinois Solar for All` `Program and its components described in paragraph (2) of` `this subsection (b), including, but not limited to, costs` `associated with procuring experts, consultants, and the` `program administrator referenced in this subsection (b)` `and related incremental costs, and costs related to the` `evaluation of the Illinois Solar for All Program, may be` `paid for using monies in the Illinois Power Agency` `Renewable Energy Resources Fund, but the Agency or program` `administrator shall strive to minimize costs in the` `implementation of the program. The Agency shall purchase` `renewable energy credits from generation that is the` `subject of a contract under subparagraphs (A) through (D)` `of this paragraph (2) of this subsection (b), and may pay` `for such renewable energy credits through an upfront` `payment per installed kilowatt of nameplate capacity paid` `once the device is interconnected at the distribution` `system level of the utility and is energized. The payment` `shall be in exchange for an assignment of all renewable` `energy credits generated by the system during the first 15` `years of operation and shall be structured to overcome` `barriers to participation in the solar market by the` `low-income community. The incentives provided for in this` `Section may be implemented through the pricing of renewable` `energy credits where the prices paid for the credits are` `higher than the prices from programs offered under` `subsection (c) of Section 1-75 of this Act to account for` `the incentives. The Agency shall ensure collaboration with` `community agencies, and allocate up to 5% of the funds` `available under the Illinois Solar for All Program to` `community-based groups to assist in grassroots education` `efforts related to the Illinois Solar for All Program. The` `Agency shall retire any renewable energy credits purchased` `from this program and the credits shall count towards the` `obligation under subsection (c) of Section 1-75 of this Act` `for the electric utility to which the project is` `interconnected.` ``(4) The Agency shall, consistent with the requirements` `of this subsection (b), propose the Illinois Solar for All` `Program terms, conditions, and requirements, including the` `prices to be paid for renewable energy credits, and which` `prices may be determined through a formula, through the` `development, review, and approval of the Agency's` `long-term renewable resources procurement plan described` `in subsection (c) of Section 1-75 of this Act and Section` `16-111.5 of the Public Utilities Act. In the course of the` `Commission proceeding initiated to review and approve the` `plan, including the Illinois Solar for All Program proposed` `by the Agency, a party may propose an additional low-income` `solar or solar incentive program, or modifications to the` `programs proposed by the Agency, and the Commission may` `approve an additional program, or modifications to the` `Agency's proposed program, if the additional or modified` `program more effectively maximizes the benefits to` `low-income customers after taking into account all` `relevant factors, including, but not limited to, the extent` `to which a competitive market for low-income solar has` `developed. Following the Commission's approval of the` `Illinois Solar for All Program, the Agency or a party may` `propose adjustments to the program terms, conditions, and` `requirements, including the price offered to new systems,` `to ensure the long-term viability and success of the` `program. The Commission shall review and approve any` `modifications to the program through the plan revision` `process described in Section 16-111.5 of the Public` `Utilities Act.` ``(5) The Agency shall issue a request for qualifications` `for a third-party program administrator or administrators` `to administer all or a portion of the Illinois Solar for` `All Program. The third-party program administrator shall` `be chosen through a competitive bid process based on` `selection criteria and requirements developed by the` `Agency, including, but not limited to, experience in` `administering low-income energy programs and overseeing` `statewide clean energy or energy efficiency services. If` `the Agency retains a program administrator or` `administrators to implement all or a portion of the` `Illinois Solar for All Program, each administrator shall` `periodically submit reports to the Agency and Commission` `for each program that it administers, at appropriate` `intervals to be identified by the Agency in its long-term` `renewable resources procurement plan, provided that the` `reporting interval is at least quarterly.` ``(6) The long-term renewable resources procurement plan` `shall also provide for an independent evaluation of the` `Illinois Solar for All Program. At least every 2 years, the` `Agency shall select an independent evaluator to review and` `report on the Illinois Solar for All Program and the` `performance of the third-party program administrator of` `the Illinois Solar for All Program. The evaluation shall be` `based on objective criteria developed through a public` `stakeholder process. The process shall include feedback` `and participation from Illinois Solar for All Program` `stakeholders, including participants and organizations in` `environmental justice and historically underserved` `communities. The report shall include a summary of the` `evaluation of the Illinois Solar for All Program based on` `the stakeholder developed objective criteria. The report` `shall include the number of projects installed; the total` `installed capacity in kilowatts; the average cost per` `kilowatt of installed capacity to the extent reasonably` `obtainable by the Agency; the number of jobs or job` `opportunities created; economic, social, and environmental` `benefits created; and the total administrative costs` `expended by the Agency and program administrator to` `implement and evaluate the program. The report shall be` `delivered to the Commission and posted on the Agency's` `website, and shall be used, as needed, to revise the` `Illinois Solar for All Program. The Commission shall also` `consider the results of the evaluation as part of its` `review of the long-term renewable resources procurement` `plan under subsection (c) of Section 1-75 of this Act.` ``(7) If additional funding for the programs described in` `this subsection (b) is available under subsection (k) of` `Section 16-108 of the Public Utilities Act, then the Agency` `shall submit a procurement plan to the Commission no later` `than September 1, 2018, that proposes how the Agency will` `procure programs on behalf of the applicable utility. After` `notice and hearing, the Commission shall approve, or` `approve with modification, the plan no later than November` `1, 2018.` As used in this subsection (b), "low-income households"` `means persons and families whose income does not exceed 80% of` `area median income, adjusted for family size and revised every` `5 years.` For the purposes of this subsection (b), the Agency shall` `define "environmental justice community" as part of long-term` `renewable resources procurement plan development, to ensure,` `to the extent practicable, compatibility with other agencies'` `definitions and may, for guidance, look to the definitions used` `by federal, state, or local governments. (b-5) After the receipt of all payments required by Section` `16-115D of the Public Utilities Act, no additional funds shall` `be deposited into the Illinois Power Agency Renewable Energy` `Resources Fund unless directed by order of the Commission.` (b-10) After the receipt of all payments required by` `Section 16-115D of the Public Utilities Act and payment in full` `of all contracts executed by the Agency under subsections (b)` `and (i) of this Section, if the balance of the Illinois Power` `Agency Renewable Energy Resources Fund is under $5,000, then` `the Fund shall be inoperative and any remaining funds and any` `funds submitted to the Fund after that date, shall be` `transferred to the Supplemental Low-Income Energy Assistance` `Fund for use in the Low-Income Home Energy Assistance Program,` `as authorized by the Energy Assistance Act. `to procure` `renewable energy resources. Prior to June 1, 2011, resources` `procured pursuant to this Section shall be procured from` `facilities located in Illinois, provided the resources are` `available from those facilities. If resources are not available` `in Illinois, then they shall be procured in states that adjoin` `Illinois. If resources are not available in Illinois or in` `states that adjoin Illinois, then they may be purchased` `elsewhere. Beginning June 1, 2011, resources procured pursuant` `to this Section shall be procured from facilities located in` `Illinois or states that adjoin Illinois. If resources are not` `available in Illinois or in states that adjoin Illinois, then` `they may be procured elsewhere. To the extent available, at` `least 75% of these renewable energy resources shall come from` `wind generation. Of the renewable energy resources procured` `pursuant to this Section at least the following specified` `percentages shall come from photovoltaics on the following` `schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by` `June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the` `renewable energy resources procured pursuant to this Section,` `at least the following percentages shall come from distributed` `renewable energy generation devices: 0.5% by June 1, 2013,` `0.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter.` `To the extent available, half of the renewable energy resources` `procured from distributed renewable energy generation shall` `come from devices of less than 25 kilowatts in nameplate` `capacity. Renewable energy resources procured from distributed` `generation devices may also count towards the required` `percentages for wind and solar photovoltaics. Procurement of` `renewable energy resources from distributed renewable energy` `generation devices shall be done on an annual basis through` `multi-year contracts of no less than 5 years, and shall consist` `solely of renewable energy credits.` The Agency shall create credit requirements for suppliers` `of distributed renewable energy. In order to minimize the` `administrative burden on contracting entities, the Agency` `shall solicit the use of third-party organizations to aggregate` `distributed renewable energy into groups of no less than one` `megawatt in installed capacity. These third-party` `organizations shall administer contracts with individual` `distributed renewable energy generation device owners. An` `individual distributed renewable energy generation device` `owner shall have the ability to measure the output of his or` `her distributed renewable energy generation device. (c)``(Blank). `The Agency shall procure renewable energy` `resources at least once each year in conjunction with a` `procurement event for electric utilities required to comply` `with Section 1-75 of the Act and shall, whenever possible,` `enter into long-term contracts on an annual basis for a portion` `of the incremental requirement for the given procurement year.` (d)``(Blank). `The price paid to procure renewable energy` `credits using monies from the Illinois Power Agency Renewable` `Energy Resources Fund shall not exceed the winning bid prices` `paid for like resources procured for electric utilities` `required to comply with Section 1-75 of this Act.` (e) All renewable energy credits procured using monies from` `the Illinois Power Agency Renewable Energy Resources Fund shall` `be permanently retired.` (f)``The selection of one or more third-party program` `managers or administrators, the selection of the independent` `evaluator, and the procurement processes described in this` `Section are exempt from the requirements of the Illinois` `Procurement Code, under Section 20-10 of that Code. `The` `procurement process described in this Section is exempt from` `the requirements of the Illinois Procurement Code, pursuant to` `Section 20-10 of that Code.` (g) All disbursements from the Illinois Power Agency` `Renewable Energy Resources Fund shall be made only upon` `warrants of the Comptroller drawn upon the Treasurer as` `custodian of the Fund upon vouchers signed by the Director or` `by the person or persons designated by the Director for that` `purpose. The Comptroller is authorized to draw the warrant upon` `vouchers so signed. The Treasurer shall accept all warrants so` `signed and shall be released from liability for all payments` `made on those warrants.` (h) The Illinois Power Agency Renewable Energy Resources` `Fund shall not be subject to sweeps, administrative charges, or` `chargebacks, including, but not limited to, those authorized` `under Section 8h of the State Finance Act, that would in any` `way result in the transfer of any funds from this Fund to any` `other fund of this State or in having any such funds utilized` `for any purpose other than the express purposes set forth in` `this Section. (h-5) The Agency may assess fees to each bidder to recover` `the costs incurred in connection with a procurement process` `held under this Section. Fees collected from bidders shall be` `deposited into the Renewable Energy Resources Fund. (i) Supplemental procurement process.` ``(1) Within 90 days after the effective date of this` `amendatory Act of the 98th General Assembly, the Agency` `shall develop a one-time supplemental procurement plan` `limited to the procurement of renewable energy credits, if` `available, from new or existing photovoltaics, including,` `but not limited to, distributed photovoltaic generation.` `Nothing in this subsection (i) requires procurement of wind` `generation through the supplemental procurement.` ``Renewable energy credits procured from new` `photovoltaics, including, but not limited to, distributed` `photovoltaic generation, under this subsection (i) must be` `procured from devices installed by a qualified person. In` `its supplemental procurement plan, the Agency shall` `establish contractually enforceable mechanisms for` `ensuring that the installation of new photovoltaics is` `performed by a qualified person.` ``For the purposes of this paragraph (1), "qualified` `person" means a person who performs installations of` `photovoltaics, including, but not limited to, distributed` `photovoltaic generation, and who: (A) has completed an` `apprenticeship as a journeyman electrician from a United` `States Department of Labor registered electrical` `apprenticeship and training program and received a` `certification of satisfactory completion; or (B) does not` `currently meet the criteria under clause (A) of this` `paragraph (1), but is enrolled in a United States` `Department of Labor registered electrical apprenticeship` `program, provided that the person is directly supervised by` `a person who meets the criteria under clause (A) of this` `paragraph (1); or (C) has obtained one of the following` `credentials in addition to attesting to satisfactory` `completion of at least 5 years or 8,000 hours of documented` `hands-on electrical experience: (i) a North American Board` `of Certified Energy Practitioners (NABCEP) Installer` `Certificate for Solar PV; (ii) an Underwriters` `Laboratories (UL) PV Systems Installer Certificate; (iii)` `an Electronics Technicians Association, International` `(ETAI) Level 3 PV Installer Certificate; or (iv) an` `Associate in Applied Science degree from an Illinois` `Community College Board approved community college program` `in renewable energy or a distributed generation` `technology.` ``For the purposes of this paragraph (1), "directly` `supervised" means that there is a qualified person who` `meets the qualifications under clause (A) of this paragraph` `(1) and who is available for supervision and consultation` `regarding the work performed by persons under clause (B) of` `this paragraph (1), including a final inspection of the` `installation work that has been directly supervised to` `ensure safety and conformity with applicable codes.` ``For the purposes of this paragraph (1), "install" means` `the major activities and actions required to connect, in` `accordance with applicable building and electrical codes,` `the conductors, connectors, and all associated fittings,` `devices, power outlets, or apparatuses mounted at the` `premises that are directly involved in delivering energy to` `the premises' electrical wiring from the photovoltaics,` `including, but not limited to, to distributed photovoltaic` `generation.` ``The renewable energy credits procured pursuant to the` `supplemental procurement plan shall be procured using up to` `$30,000,000 from the Illinois Power Agency Renewable` `Energy Resources Fund. The Agency shall not plan to use` `funds from the Illinois Power Agency Renewable Energy` `Resources Fund in excess of the monies on deposit in such` `fund or projected to be deposited into such fund. The` `supplemental procurement plan shall ensure adequate,` `reliable, affordable, efficient, and environmentally` `sustainable renewable energy resources (including credits)` `at the lowest total cost over time, taking into account any` `benefits of price stability.` ``To the extent available, 50% of the renewable energy` `credits procured from distributed renewable energy` `generation shall come from devices of less than 25` `kilowatts in nameplate capacity. Procurement of renewable` `energy credits from distributed renewable energy` `generation devices shall be done through multi-year` `contracts of no less than 5 years. The Agency shall create` `credit requirements for counterparties. In order to` `minimize the administrative burden on contracting` `entities, the Agency shall solicit the use of third parties` `to aggregate distributed renewable energy. These third` `parties shall enter into and administer contracts with` `individual distributed renewable energy generation device` `owners. An individual distributed renewable energy` `generation device owner shall have the ability to measure` `the output of his or her distributed renewable energy` `generation device.` ``In developing the supplemental procurement plan, the` `Agency shall hold at least one workshop open to the public` `within 90 days after the effective date of this amendatory` `Act of the 98th General Assembly and shall consider any` `comments made by stakeholders or the public. Upon` `development of the supplemental procurement plan within` `this 90-day period, copies of the supplemental procurement` `plan shall be posted and made publicly available on the` `Agency's and Commission's websites. All interested parties` `shall have 14 days following the date of posting to provide` `comment to the Agency on the supplemental procurement plan.` `All comments submitted to the Agency shall be specific,` `supported by data or other detailed analyses, and, if` `objecting to all or a portion of the supplemental` `procurement plan, accompanied by specific alternative` `wording or proposals. All comments shall be posted on the` `Agency's and Commission's websites. Within 14 days` `following the end of the 14-day review period, the Agency` `shall revise the supplemental procurement plan as` `necessary based on the comments received and file its` `revised supplemental procurement plan with the Commission` `for approval.` ``(2) Within 5 days after the filing of the supplemental` `procurement plan at the Commission, any person objecting to` `the supplemental procurement plan shall file an objection` `with the Commission. Within 10 days after the filing, the` `Commission shall determine whether a hearing is necessary.` `The Commission shall enter its order confirming or` `modifying the supplemental procurement plan within 90 days` `after the filing of the supplemental procurement plan by` `the Agency.` ``(3) The Commission shall approve the supplemental` `procurement plan of renewable energy credits to be procured` `from new or existing photovoltaics, including, but not` `limited to, distributed photovoltaic generation, if the` `Commission determines that it will ensure adequate,` `reliable, affordable, efficient, and environmentally` `sustainable electric service in the form of renewable` `energy credits at the lowest total cost over time, taking` `into account any benefits of price stability.` ``(4) The supplemental procurement process under this` `subsection (i) shall include each of the following` `components:` `(A) Procurement administrator. The Agency may` `retain a procurement administrator in the manner set` `forth in item (2) of subsection (a) of Section 1-75 of` `this Act to conduct the supplemental procurement or may` `elect to use the same procurement administrator` `administering the Agency's annual procurement under` `Section 1-75.` `(B) Procurement monitor. The procurement monitor` `retained by the Commission pursuant to Section` `16-111.5 of the Public Utilities Act shall:` (i) monitor interactions among the procurement` `administrator and bidders and suppliers;` (ii) monitor and report to the Commission on` `the progress of the supplemental procurement` `process;` (iii) provide an independent confidential` `report to the Commission regarding the results of` `the procurement events;` (iv) assess compliance with the procurement` `plan approved by the Commission for the` `supplemental procurement process;` (v) preserve the confidentiality of supplier` `and bidding information in a manner consistent` `with all applicable laws, rules, regulations, and` `tariffs;` (vi) provide expert advice to the Commission` `and consult with the procurement administrator` `regarding issues related to procurement process` `design, rules, protocols, and policy-related` `matters;` (vii) consult with the procurement` `administrator regarding the development and use of` `benchmark criteria, standard form contracts,` `credit policies, and bid documents; and` (viii) perform, with respect to the` `supplemental procurement process, any other` `procurement monitor duties specifically delineated` `within subsection (i) of this Section.` `(C) Solicitation, pre-qualification, and` `registration of bidders. The procurement administrator` `shall disseminate information to potential bidders to` `promote a procurement event, notify potential bidders` `that the procurement administrator may enter into a` `post-bid price negotiation with bidders that meet the` `applicable benchmarks, provide supply requirements,` `and otherwise explain the competitive procurement` `process. In addition to such other publication as the` `procurement administrator determines is appropriate,` `this information shall be posted on the Agency's and` `the Commission's websites. The procurement` `administrator shall also administer the` `prequalification process, including evaluation of` `credit worthiness, compliance with procurement rules,` `and agreement to the standard form contract developed` `pursuant to item (D) of this paragraph (4). The` `procurement administrator shall then identify and` `register bidders to participate in the procurement` `event.` `(D) Standard contract forms and credit terms and` `instruments. The procurement administrator, in` `consultation with the Agency, the Commission, and` `other interested parties and subject to Commission` `oversight, shall develop and provide standard contract` `forms for the supplier contracts that meet generally` `accepted industry practices as well as include any` `applicable State of Illinois terms and conditions that` `are required for contracts entered into by an agency of` `the State of Illinois. Standard credit terms and` `instruments that meet generally accepted industry` `practices shall be similarly developed. Contracts for` `new photovoltaics shall include a provision attesting` `that the supplier will use a qualified person for the` `installation of the device pursuant to paragraph (1) of` `subsection (i) of this Section. The procurement` `administrator shall make available to the Commission` `all written comments it receives on the contract forms,` `credit terms, or instruments. If the procurement` `administrator cannot reach agreement with the parties` `as to the contract terms and conditions, the` `procurement administrator must notify the Commission` `of any disputed terms and the Commission shall resolve` `the dispute. The terms of the contracts shall not be` `subject to negotiation by winning bidders, and the` `bidders must agree to the terms of the contract in` `advance so that winning bids are selected solely on the` `basis of price.` `(E) Requests for proposals; competitive` `procurement process. The procurement administrator` `shall design and issue requests for proposals to supply` `renewable energy credits in accordance with the` `supplemental procurement plan, as approved by the` `Commission. The requests for proposals shall set forth` `a procedure for sealed, binding commitment bidding` `with pay-as-bid settlement, and provision for` `selection of bids on the basis of price, provided,` `however, that no bid shall be accepted if it exceeds` `the benchmark developed pursuant to item (F) of this` `paragraph (4).` `(F) Benchmarks. Benchmarks for each product to be` `procured shall be developed by the procurement` `administrator in consultation with Commission staff,` `the Agency, and the procurement monitor for use in this` `supplemental procurement.` `(G) A plan for implementing contingencies in the` `event of supplier default, Commission rejection of` `results, or any other cause.` ``(5) Within 2 business days after opening the sealed` `bids, the procurement administrator shall submit a` `confidential report to the Commission. The report shall` `contain the results of the bidding for each of the products` `along with the procurement administrator's recommendation` `for the acceptance and rejection of bids based on the price` `benchmark criteria and other factors observed in the` `process. The procurement monitor also shall submit a` `confidential report to the Commission within 2 business` `days after opening the sealed bids. The report shall` `contain the procurement monitor's assessment of bidder` `behavior in the process as well as an assessment of the` `procurement administrator's compliance with the` `procurement process and rules. The Commission shall review` `the confidential reports submitted by the procurement` `administrator and procurement monitor and shall accept or` `reject the recommendations of the procurement` `administrator within 2 business days after receipt of the` `reports.` ``(6) Within 3 business days after the Commission` `decision approving the results of a procurement event, the` `Agency shall enter into binding contractual arrangements` `with the winning suppliers using the standard form` `contracts.` ``(7) The names of the successful bidders and the average` `of the winning bid prices for each contract type and for` `each contract term shall be made available to the public` `within 2 days after the supplemental procurement event. The` `Commission, the procurement monitor, the procurement` `administrator, the Agency, and all participants in the` `procurement process shall maintain the confidentiality of` `all other supplier and bidding information in a manner` `consistent with all applicable laws, rules, regulations,` `and tariffs. Confidential information, including the` `confidential reports submitted by the procurement` `administrator and procurement monitor pursuant to this` `Section, shall not be made publicly available and shall not` `be discoverable by any party in any proceeding, absent a` `compelling demonstration of need, nor shall those reports` `be admissible in any proceeding other than one for law` `enforcement purposes.` ``(8) The supplemental procurement provided in this` `subsection (i) shall not be subject to the requirements and` `limitations of subsections (c) and (d) of this Section.` ``(9) Expenses incurred in connection with the` `procurement process held pursuant to this Section,` `including, but not limited to, the cost of developing the` `supplemental procurement plan, the procurement` `administrator, procurement monitor, and the cost of the` `retirement of renewable energy credits purchased pursuant` `to the supplemental procurement shall be paid for from the` `Illinois Power Agency Renewable Energy Resources Fund. The` `Agency shall enter into an interagency agreement with the` `Commission to reimburse the Commission for its costs` `associated with the procurement monitor for the` `supplemental procurement process.` `(Source: P.A. 97-616, eff. 10-26-11; 98-672, eff. 6-30-14.)` (20 ILCS 3855/1-75)` Sec. 1-75.``Planning and Procurement Bureau.``The Planning` `and Procurement Bureau has the following duties and` `responsibilities:` (a) The Planning and Procurement Bureau shall each year,` `beginning in 2008, develop procurement plans and conduct` `competitive procurement processes in accordance with the` `requirements of Section 16-111.5 of the Public Utilities Act` `for the eligible retail customers of electric utilities that on` `December 31, 2005 provided electric service to at least 100,000` `customers in Illinois.``Beginning with the delivery year` `commencing on June 1, 2017, the Planning and Procurement Bureau` `shall develop plans and processes for the procurement of zero` `emission credits from zero emission facilities in accordance` `with the requirements of subsection (d-5) of this Section.``The` `Planning and Procurement Bureau shall also develop procurement` `plans and conduct competitive procurement processes in` `accordance with the requirements of Section 16-111.5 of the` `Public Utilities Act for the eligible retail customers of small` `multi-jurisdictional electric utilities that (i) on December` `31, 2005 served less than 100,000 customers in Illinois and` `(ii) request a procurement plan for 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. ``(1) The Agency shall each year, beginning in 2008, as` `needed, issue a request for qualifications for experts or` `expert consulting firms to develop the procurement plans in` `accordance with Section 16-111.5 of the Public Utilities` `Act. In order to qualify an expert or expert consulting` `firm must have:` `(A) direct previous experience assembling` `large-scale power supply plans or portfolios for` `end-use customers;` `(B) an advanced degree in economics, mathematics,` `engineering, risk management, or a related area of` `study;` `(C) 10 years of experience in the electricity` `sector, including managing supply risk;` `(D) expertise in wholesale electricity market` `rules, including those established by the Federal` `Energy Regulatory Commission and regional transmission` `organizations;` `(E) expertise in credit protocols and familiarity` `with contract protocols;` `(F) adequate resources to perform and fulfill the` `required functions and responsibilities; and` `(G) the absence of a conflict of interest and` `inappropriate bias for or against potential bidders or` `the affected electric utilities.` ``(2) The Agency shall each year, as needed, issue a` `request for qualifications for a procurement administrator` `to conduct the competitive procurement processes in` `accordance with Section 16-111.5 of the Public Utilities` `Act. In order to qualify an expert or expert consulting` `firm must have:` `(A) direct previous experience administering a` `large-scale competitive procurement process;` `(B) an advanced degree in economics, mathematics,` `engineering, or a related area of study;` `(C) 10 years of experience in the electricity` `sector, including risk management experience;` `(D) expertise in wholesale electricity market` `rules, including those established by the Federal` `Energy Regulatory Commission and regional transmission` `organizations;` `(E) expertise in credit and contract protocols;` `(F) adequate resources to perform and fulfill the` `required functions and responsibilities; and` `(G) the absence of a conflict of interest and` `inappropriate bias for or against potential bidders or` `the affected electric utilities.` ``(3) The Agency shall provide affected utilities and` `other interested parties with the lists of qualified` `experts or expert consulting firms identified through the` `request for qualifications processes that are under` `consideration to develop the procurement plans and to serve` `as the procurement administrator. The Agency shall also` `provide each qualified expert's or expert consulting` `firm's response to the request for qualifications. All` `information provided under this subparagraph shall also be` `provided to the Commission. The Agency may provide by rule` `for fees associated with supplying the information to` `utilities and other interested parties. These parties` `shall, within 5 business days, notify the Agency in writing` `if they object to any experts or expert consulting firms on` `the lists. Objections shall be based on:` `(A) failure to satisfy qualification criteria;` `(B) identification of a conflict of interest; or` `(C) evidence of inappropriate bias for or against` `potential bidders or the affected utilities.` ``The Agency shall remove experts or expert consulting` `firms from the lists within 10 days if there is a` `reasonable basis for an objection and provide the updated` `lists to the affected utilities and other interested` `parties. If the Agency fails to remove an expert or expert` `consulting firm from a list, an objecting party may seek` `review by the Commission within 5 days thereafter by filing` `a petition, and the Commission shall render a ruling on the` `petition within 10 days. There is no right of appeal of the` `Commission's ruling.` ``(4) The Agency shall issue requests for proposals to` `the qualified experts or expert consulting firms to develop` `a procurement plan for the affected utilities and to serve` `as procurement administrator.` ``(5) The Agency shall select an expert or expert` `consulting firm to develop procurement plans based on the` `proposals submitted and shall award contracts of up to 5` `years to those selected.` ``(6) The Agency shall select an expert or expert` `consulting firm, with approval of the Commission, to serve` `as procurement administrator based on the proposals` `submitted. If the Commission rejects, within 5 days, the` `Agency's selection, the Agency shall submit another` `recommendation within 3 days based on the proposals` `submitted. The Agency shall award a 5-year contract to the` `expert or expert consulting firm so selected with` `Commission approval.` (b) The experts or expert consulting firms retained by the` `Agency shall, as appropriate, prepare procurement plans, and` `conduct a competitive procurement process as prescribed in` `Section 16-111.5 of the Public Utilities Act, to ensure` `adequate, reliable, affordable, efficient, and environmentally` `sustainable electric service at the lowest total cost over` `time, taking into account any benefits of price stability, for` `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` `the effective date of this amendatory Act of the 99th` `General Assembly. 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),` `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 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` `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` `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` `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 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 the effective date of this amendatory Act` `of the 99th General Assembly. ``(E) For purposes of this subsection (c), the required` `procurement of cost-effective renewable energy resources` `for a particular year commencing prior to June 1, 2017` `shall be measured as a percentage of the actual amount of` `electricity (megawatt-hours) supplied by the electric` `utility to eligible retail customers in the delivery year` `ending immediately prior to the procurement, and, for` `delivery years commencing on and after June 1, 2017, the` `required procurement of cost-effective renewable energy` `resources for a particular year shall be measured as a` `percentage of the actual amount of electricity` `(megawatt-hours) delivered by the electric utility in the` `delivery year ending immediately prior to the procurement,` `to all retail customers in its service territory. For` `purposes of this subsection (c), the amount paid per` `kilowatthour means the total amount paid for electric` `service expressed on a per kilowatthour basis. For purposes` `of this subsection (c), the total amount paid for electric` `service includes without limitation amounts paid for` `supply, transmission, 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 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` `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 the effective date` `of this amendatory Act of the 99th General Assembly.` `For the purposes of this initial forward procurement,` `the Agency shall solicit 15-year contracts for` `delivery of 1,000,000 renewable energy credits` `delivered annually from new utility-scale wind` `projects to begin delivery on June 1, 2019, if` `available, but not later than June 1, 2021. 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 the effective date of` `this amendatory Act of the 99th General Assembly. 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.` `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` `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` `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 alternate retail electric supplier` `meets the requirements described in this subparagraph (H). `(i) Within 45 days after the effective date of this` `amendatory Act of the 99th General Assembly, an` `alternative retail electric supplier or its successor` `shall submit an informational filing to the Illinois` `Commerce Commission certifying that, as of December` `31, 2015, the alternative retail electric supplier` `owned one or more electric generating facilities that` `generates renewable energy resources as defined in` `Section 1-10 of this Act, provided that such facilities` `are not powered by wind or photovoltaics, and the` `facilities generate one renewable energy credit for` `each megawatthour of energy produced from the` `facility.` `The informational filing shall identify each` `facility that was eligible to satisfy the alternative` `retail electric supplier's obligations under Section` `16-115D of the Public Utilities Act as described in` `this item (i).` `(ii) For a given delivery year, the alternative` `retail electric supplier may elect to supply its 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 the effective` `date of this amendatory Act of the 99th General` `Assembly, whichever is later, of its election under` `item (ii) of this subparagraph (H) to supply renewable` `energy credits to retail customers of the utility. Such` `election shall identify the amount of renewable energy` `credits to be supplied by the alternative retail` `electric supplier to the utility's retail customers` `and the source of the renewable energy credits` `identified in the informational filing as described in` `item (i) of this subparagraph (H), subject to the` `following limitations:` For the delivery year beginning June 1, 2018,` `the maximum amount of renewable energy credits to` `be supplied by an alternative retail electric` `supplier under this subparagraph (H) shall be 68%` `multiplied by 25% multiplied by 14.5% multiplied` `by the amount of metered electricity` `(megawatt-hours) delivered by the alternative` `retail electric supplier to Illinois retail` `customers during the delivery year ending May 31,` `2016.` For delivery years beginning June 1, 2019 and` `each year thereafter, the maximum amount of` `renewable energy credits to be supplied by an` `alternative retail electric supplier under this` `subparagraph (H) shall be 68% multiplied by 50%` `multiplied by 16% multiplied by the amount of` `metered electricity (megawatt-hours) delivered by` `the alternative retail electric supplier to` `Illinois retail customers during the delivery year` `ending May 31, 2016, provided that the 16% value` `shall increase by 1.5% each delivery year` `thereafter to 25% by the delivery year beginning` `June 1, 2025, and thereafter the 25% value shall` `apply to each delivery year.` `For each delivery year, the total amount of` `renewable energy credits supplied by all alternative` `retail electric suppliers under this subparagraph (H)` `shall not exceed 9% of the Illinois target renewable` `energy credit quantity. The Illinois target renewable` `energy credit quantity for the delivery year beginning` `June 1, 2018 is 14.5% multiplied by the total amount of` `metered electricity (megawatt-hours) delivered in the` `delivery year immediately preceding that delivery` `year, provided that the 14.5% shall increase by 1.5%` `each delivery year thereafter to 25% by the delivery` `year beginning June 1, 2025, and thereafter the 25%` `value shall apply to each delivery year.` `If the requirements set forth in items (i) through` `(iii) of this subparagraph (H) are met, the charges` `that would otherwise be applicable to the retail` `customers of the alternative retail electric supplier` `under paragraph (6) of this subsection (c) for the` `applicable delivery year shall be reduced by the ratio` `of the quantity of renewable energy credits supplied by` `the alternative retail electric supplier compared to` `that supplier's target renewable energy credit` `quantity. The supplier's target renewable energy` `credit quantity for the delivery year beginning June 1,` `2018 is 14.5% multiplied by the total amount of metered` `electricity (megawatt-hours) delivered by the` `alternative retail supplier in that delivery year,` `provided that the 14.5% shall increase by 1.5% each` `delivery year thereafter to 25% by the delivery year` `beginning June 1, 2025, and thereafter the 25% value` `shall apply to each delivery year. `On or before April 1 of each year, the Agency shall` `annually publish a report on its website that` `identifies the aggregate amount of renewable energy` `credits supplied by alternative retail electric` `suppliers under this subparagraph (H). ``(I) The Agency shall design its long-term renewable` `energy procurement plan to maximize the State's interest in` `the health, safety, and welfare of its residents, including` `but not limited to minimizing sulfur dioxide, nitrogen` `oxide, particulate matter and other pollution that` `adversely affects public health in this State, increasing` `fuel and resource diversity in this State, enhancing the` `reliability and resiliency of the electricity distribution` `system in this State, meeting goals to limit carbon dioxide` `emissions under federal or State law, and contributing to a` `cleaner and healthier environment for the citizens of this` `State. In order to further these legislative purposes,` `renewable energy credits shall be eligible to be counted` `toward the renewable energy requirements of this` `subsection (c) if they are generated from facilities` `located in this State. The Agency may qualify renewable` `energy credits from facilities located in states adjacent` `to Illinois 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` `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` `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 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` `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 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` `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` `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` `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.` ``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` `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` `an independent evaluation of those programs on a periodic` `basis that are funded under this subparagraph (O). `The` `procurement plans shall include cost-effective renewable` `energy resources. A minimum percentage of each utility's` `total supply to serve the load of eligible retail` `customers, as defined in Section 16-111.5(a) of the Public` `Utilities Act, procured for each of the following years` `shall be generated from cost-effective renewable energy` `resources: at least 2% by June 1, 2008; at least 4% by June` `1, 2009; at least 5% by June 1, 2010; at least 6% by June 1,` `2011; at least 7% by June 1, 2012; at least 8% by June 1,` `2013; at least 9% by June 1, 2014; at least 10% by June 1,` `2015; and increasing by at least 1.5% each year thereafter` `to at least 25% by June 1, 2025. To the extent that it is` `available, at least 75% of the renewable energy resources` `used to meet these standards shall come from wind` `generation and, beginning on June 1, 2011, at least the` `following percentages of the renewable energy resources` `used to meet these standards shall come from photovoltaics` `on the following schedule: 0.5% by June 1, 2012, 1.5% by` `June 1, 2013; 3% by June 1, 2014; and 6% by June 1, 2015 and` `thereafter. Of the renewable energy resources procured` `pursuant to this Section, at least the following` `percentages shall come from distributed renewable energy` `generation devices: 0.5% by June 1, 2013, 0.75% by June 1,` `2014, and 1% by June 1, 2015 and thereafter. To the extent` `available, half of the renewable energy resources procured` `from distributed renewable energy generation shall come` `from devices of less than 25 kilowatts in nameplate` `capacity. Renewable energy resources procured from` `distributed generation devices may also count towards the` `required percentages for wind and solar photovoltaics.` `Procurement of renewable energy resources from distributed` `renewable energy generation devices shall be done on an` `annual basis through multi-year contracts of no less than 5` `years, and shall consist solely of renewable energy` `credits.` ``The Agency shall create credit requirements for` `suppliers of distributed renewable energy. In order to` `minimize the administrative burden on contracting` `entities, the Agency shall solicit the use of third-party` `organizations to aggregate distributed renewable energy` `into groups of no less than one megawatt in installed` `capacity. These third-party organizations shall administer` `contracts with individual distributed renewable energy` `generation device owners. An individual distributed` `renewable energy generation device owner shall have the` `ability to measure the output of his or her distributed` `renewable energy generation device.` ``For purposes of this subsection (c), "cost-effective"` `means that the costs of procuring renewable energy` `resources do not cause the limit stated in paragraph (2) of` `this subsection (c) to be exceeded and do not exceed` `benchmarks based on market prices for renewable energy` `resources in the region, which 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. ``(2)``(Blank). `For purposes of this subsection (c), 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) supplied by the electric utility to` `eligible retail customers in the planning year ending` `immediately prior to the procurement. 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` `pursuant to the procurement plan for any single 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 2008, no more than 0.5% of the amount paid` `per kilowatthour by those customers during the year` `ending May 31, 2007;` `(B) in 2009, the greater of an additional 0.5% of` `the amount paid per kilowatthour by those customers` `during the year ending May 31, 2008 or 1% of the amount` `paid per kilowatthour by those customers during the` `year ending May 31, 2007;` `(C) in 2010, the greater of an additional 0.5% of` `the amount paid per kilowatthour by those customers` `during the year ending May 31, 2009 or 1.5% of the` `amount paid per kilowatthour by those customers during` `the year ending May 31, 2007;` `(D) 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 2% of the amount` `paid per kilowatthour by those customers during the` `year ending May 31, 2007; and `(E) thereafter, the amount of renewable energy` `resources procured 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 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 for` `these resources in 2011.` `No later than June 30, 2011, the Commission shall` `review the limitation on the amount of renewable energy` `resources procured pursuant to this subsection (c) and` `report to the General Assembly its findings as to` `whether that limitation unduly constrains the` `procurement of cost-effective renewable energy` `resources.` ``(3)``(Blank). `Through June 1, 2011, renewable energy` `resources shall be counted for the purpose of meeting the` `renewable energy standards set forth in paragraph (1) of` `this subsection (c) only if they are generated from` `facilities located in the State, provided that` `cost-effective renewable energy resources are available` `from those facilities. If those cost-effective resources` `are not available in Illinois, they shall be procured in` `states that adjoin Illinois and may be counted towards` `compliance. If those cost-effective resources are not` `available in Illinois or in states that adjoin Illinois,` `they shall be purchased elsewhere and shall be counted` `towards compliance. After June 1, 2011, cost-effective` `renewable energy resources located in Illinois and in` `states that adjoin Illinois may be counted towards` `compliance with the standards set forth in paragraph (1) of` `this subsection (c). If those cost-effective resources are` `not available in Illinois or in states that adjoin` `Illinois, they shall be purchased elsewhere and shall be` `counted towards compliance. ``(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 `year commencing June 1, 2010``, 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` `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 the effective` `date of this amendatory Act of the 99th General Assembly` `must be procured from devices installed by a qualified` `person in compliance with the requirements of Section` `16-128A of the Public Utilities Act and any rules or` `regulations adopted thereunder.` ``In meeting the renewable energy requirements of this` `subsection (c), to the extent feasible and consistent with` `State and federal law, the renewable energy credit` `procurements, Adjustable Block solar program, and` `community renewable generation program 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. (d) Clean coal portfolio standard.` ``(1) The procurement plans shall include electricity` `generated using clean coal. Each utility shall enter into` `one or more sourcing agreements with the initial clean coal` `facility, as provided in paragraph (3) of this subsection` `(d), covering electricity generated by the initial clean` `coal facility representing at least 5% of each utility's` `total supply to serve the load of eligible retail customers` `in 2015 and each year thereafter, as described in paragraph` `(3) of this subsection (d), subject to the limits specified` `in paragraph (2) of this subsection (d). It is the goal of` `the State that by January 1, 2025, 25% of the electricity` `used in the State shall be generated by cost-effective` `clean coal facilities. For purposes of this subsection (d),` `"cost-effective" means that the expenditures pursuant to` `such sourcing agreements do not cause the limit stated in` `paragraph (2) of this subsection (d) to be exceeded and do` `not exceed cost-based benchmarks, which shall be developed` `to assess all expenditures pursuant to such sourcing` `agreements covering electricity generated by clean coal` `facilities, other than the initial clean coal facility, by` `the procurement administrator, in consultation with the` `Commission staff, Agency staff, and the procurement` `monitor and shall be subject to Commission review and` `approval.` ``A utility party to a sourcing agreement shall` `immediately retire any emission credits that it receives in` `connection with the electricity covered by such agreement.` ``Utilities shall maintain adequate records documenting` `the purchases under the sourcing agreement to comply with` `this subsection (d) and shall file an accounting with the` `load forecast that must be filed with the Agency by July 15` `of each year, in accordance with subsection (d) of Section` `16-111.5 of the Public Utilities Act.` ``A utility shall be deemed to have complied with the` `clean coal portfolio standard specified in this subsection` `(d) if the utility enters into a sourcing agreement as` `required by this subsection (d).` ``(2) For purposes of this subsection (d), the required` `execution of sourcing agreements with the initial clean` `coal facility for a particular year shall be measured as a` `percentage of the actual amount of electricity` `(megawatt-hours) supplied by the electric utility to` `eligible retail customers in the planning year ending` `immediately prior to the agreement's execution. For` `purposes of this subsection (d), the amount paid per` `kilowatthour means the total amount paid for electric` `service expressed on a per kilowatthour basis. For purposes` `of this subsection (d), the total amount paid for electric` `service includes without limitation amounts paid for` `supply, transmission, distribution, surcharges and add-on` `taxes.` ``Notwithstanding the requirements of this subsection` `(d), the total amount paid under sourcing agreements with` `clean coal facilities pursuant to the procurement plan for` `any given year shall be reduced by an amount necessary to` `limit the annual estimated average net increase due to the` `costs of these resources included in the amounts paid by` `eligible retail customers in connection with electric` `service to:` `(A) in 2010, no more than 0.5% of the amount paid` `per kilowatthour by those customers during the year` `ending May 31, 2009;` `(B) in 2011, the greater of an additional 0.5% of` `the amount paid per kilowatthour by those customers` `during the year ending May 31, 2010 or 1% of the amount` `paid per kilowatthour by those customers during the` `year ending May 31, 2009;` `(C) in 2012, the greater of an additional 0.5% of` `the amount paid per kilowatthour by those customers` `during the year ending May 31, 2011 or 1.5% of the` `amount paid per kilowatthour by those customers during` `the year ending May 31, 2009;` `(D) in 2013, the greater of an additional 0.5% of` `the amount paid per kilowatthour by those customers` `during the year ending May 31, 2012 or 2% of the amount` `paid per kilowatthour by those customers during the` `year ending May 31, 2009; and` `(E) thereafter, the total amount paid under` `sourcing agreements with clean coal facilities` `pursuant to the procurement plan for any single year` `shall be reduced by an amount necessary to limit the` `estimated average net increase due to the cost of these` `resources included in the amounts paid by eligible` `retail customers in connection with electric service` `to no more than the greater of (i) 2.015% of the amount` `paid per kilowatthour by those customers during the` `year ending May 31, 2009 or (ii) the incremental amount` `per kilowatthour paid for these resources in 2013.` `These requirements may be altered only as provided by` `statute.` ``No later than June 30, 2015, the Commission shall` `review the limitation on the total amount paid under` `sourcing agreements, if any, with clean coal facilities` `pursuant to this subsection (d) and report to the General` `Assembly its findings as to whether that limitation unduly` `constrains the amount of electricity generated by` `cost-effective clean coal facilities that is covered by` `sourcing agreements.` ``(3) Initial clean coal facility. In order to promote` `development of clean coal facilities in Illinois, each` `electric utility subject to this Section shall execute a` `sourcing agreement to source electricity from a proposed` `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 the effective date of this` `amendatory Act of the 95th General Assembly, and that will` `meet the definition of clean coal facility in Section 1-10` `of this Act when commercial operation commences. The` `sourcing agreements with this initial clean coal facility` `shall be subject to both approval of the initial clean coal` `facility by the General Assembly and satisfaction of the` `requirements of paragraph (4) of this subsection (d) and` `shall be executed within 90 days after any such approval by` `the General Assembly. The Agency and the Commission shall` `have authority to inspect all books and records associated` `with the initial clean coal facility during the term of` `such a sourcing agreement. A utility's sourcing agreement` `for electricity produced by the initial clean coal facility` `shall include:` `(A) a formula contractual price (the "contract` `price") approved pursuant to paragraph (4) of this` `subsection (d), which shall:` (i) be determined using a cost of service` `methodology employing either a level or deferred` `capital recovery component, based on a capital` `structure consisting of 45% equity and 55% debt,` `and a return on equity as may be approved by the` `Federal Energy Regulatory Commission, which in any` `case may not exceed the lower of 11.5% or the rate` `of return approved by the General Assembly` `pursuant to paragraph (4) of this subsection (d);` `and` (ii) provide that all miscellaneous net` `revenue, including but not limited to net revenue` `from the sale of emission allowances, if any,` `substitute natural gas, if any, grants or other` `support provided by the State of Illinois or the` `United States Government, firm transmission` `rights, if any, by-products produced by the` `facility, energy or capacity derived from the` `facility and not covered by a sourcing agreement` `pursuant to paragraph (3) of this subsection (d) or` `item (5) of subsection (d) of Section 16-115 of the` `Public Utilities Act, whether generated from the` `synthesis gas derived from coal, from SNG, or from` `natural gas, shall be credited against the revenue` `requirement for this initial clean coal facility;` `(B) power purchase provisions, which shall:` (i) provide that the utility party to such` `sourcing agreement shall pay the contract price` `for electricity delivered under such sourcing` `agreement;` (ii) require delivery of electricity to the` `regional transmission organization market of the` `utility that is party to such sourcing agreement;` (iii) require the utility party to such` `sourcing agreement to buy from the initial clean` `coal facility in each hour an amount of energy` `equal to all clean coal energy made available from` `the initial clean coal facility during such hour` `times a fraction, the numerator of which is such` `utility's retail market sales of electricity` `(expressed in kilowatthours sold) in the State` `during the prior calendar month and the` `denominator of which is the total retail market` `sales of electricity (expressed in kilowatthours` `sold) in the State by utilities during such prior` `month and the sales of electricity (expressed in` `kilowatthours sold) in the State by alternative` `retail electric suppliers during such prior month` `that are subject to the requirements of this` `subsection (d) and paragraph (5) of subsection (d)` `of Section 16-115 of the Public Utilities Act,` `provided that the amount purchased by the utility` `in any year will be limited by paragraph (2) of` `this subsection (d); and` (iv) be considered pre-existing contracts in` `such utility's procurement plans for eligible` `retail customers;` `(C) contract for differences provisions, which` `shall:` (i) require the utility party to such sourcing` `agreement to contract with the initial clean coal` `facility in each hour with respect to an amount of` `energy equal to all clean coal energy made` `available from the initial clean coal facility` `during such hour times a fraction, the numerator of` `which is such utility's retail market sales of` `electricity (expressed in kilowatthours sold) in` `the utility's service territory in the State` `during the prior calendar month and the` `denominator of which is the total retail market` `sales of electricity (expressed in kilowatthours` `sold) in the State by utilities during such prior` `month and the sales of electricity (expressed in` `kilowatthours sold) in the State by alternative` `retail electric suppliers during such prior month` `that are subject to the requirements of this` `subsection (d) and paragraph (5) of subsection (d)` `of Section 16-115 of the Public Utilities Act,` `provided that the amount paid by the utility in any` `year will be limited by paragraph (2) of this` `subsection (d);` (ii) provide that the utility's payment` `obligation in respect of the quantity of` `electricity determined pursuant to the preceding` `clause (i) shall be limited to an amount equal to` `(1) the difference between the contract price` `determined pursuant to subparagraph (A) of` `paragraph (3) of this subsection (d) and the` `day-ahead price for electricity delivered to the` `regional transmission organization market of the` `utility that is party to such sourcing agreement` `(or any successor delivery point at which such` `utility's supply obligations are financially` `settled on an hourly basis) (the "reference` `price") on the day preceding the day on which the` `electricity is delivered to the initial clean coal` `facility busbar, multiplied by (2) the quantity of` `electricity determined pursuant to the preceding` `clause (i); and` (iii) not require the utility to take physical` `delivery of the electricity produced by the` `facility;` `(D) general provisions, which shall:` (i) specify a term of no more than 30 years,` `commencing on the commercial operation date of the` `facility;` (ii) provide that utilities shall maintain` `adequate records documenting purchases under the` `sourcing agreements entered into to comply with` `this subsection (d) and shall file an accounting` `with the load forecast that must be filed with the` `Agency by July 15 of each year, in accordance with` `subsection (d) of Section 16-111.5 of the Public` `Utilities Act;` (iii) provide that all costs associated with` `the initial clean coal facility will be` `periodically reported to the Federal Energy` `Regulatory Commission and to purchasers in` `accordance with applicable laws governing` `cost-based wholesale power contracts;` (iv) permit the Illinois Power Agency to` `assume ownership of the initial clean coal` `facility, without monetary consideration and` `otherwise on reasonable terms acceptable to the` `Agency, if the Agency so requests no less than 3` `years prior to the end of the stated contract term;` (v) require the owner of the initial clean coal` `facility to provide documentation to the` `Commission each year, starting in the facility's` `first year of commercial operation, accurately` `reporting the quantity of carbon emissions from` `the facility that have been captured and` `sequestered and report any quantities of carbon` `released from the site or sites at which carbon` `emissions were sequestered in prior years, based` `on continuous monitoring of such sites. If, in any` `year after the first year of commercial operation,` `the owner of the facility fails to demonstrate that` `the initial clean coal facility captured and` `sequestered at least 50% of the total carbon` `emissions that the facility would otherwise emit` `or that sequestration of emissions from prior` `years has failed, resulting in the release of` `carbon dioxide into the atmosphere, the owner of` `the facility must offset excess emissions. Any` `such carbon offsets must be permanent, additional,` `verifiable, real, located within the State of` `Illinois, and legally and practicably enforceable.` `The cost of such offsets for the facility that are` `not recoverable shall not exceed $15 million in any` `given year. No costs of any such purchases of` `carbon offsets may be recovered from a utility or` `its customers. All carbon offsets purchased for` `this purpose and any carbon emission credits` `associated with sequestration of carbon from the` `facility must be permanently retired. The initial` `clean coal facility shall not forfeit its` `designation as a clean coal facility if the` `facility fails to fully comply with the applicable` `carbon sequestration requirements in any given` `year, provided the requisite offsets are` `purchased. However, the Attorney General, on` `behalf of the People of the State of Illinois, may` `specifically enforce the facility's sequestration` `requirement and the other terms of this contract` `provision. Compliance with the sequestration` `requirements and offset purchase requirements` `specified in paragraph (3) of this subsection (d)` `shall be reviewed annually by an independent` `expert retained by the owner of the initial clean` `coal facility, with the advance written approval` `of the Attorney General. The Commission may, in the` `course of the review specified in item (vii),` `reduce the allowable return on equity for the` `facility if the facility wilfully 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 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 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.` `(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` `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` `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.` `(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` `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 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.` (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, 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 Section 1-75 of this Act` `for the 5 delivery years beginning June 1, 2017.` ``The procurement process shall be subject to the` `following provisions:` `(A) Those zero emission facilities that intend to` `participate in the procurement shall submit to the` `Agency the following eligibility information for each` `zero emission facility on or before the date` `established by the Agency:` (i) the in-service date and remaining useful` `life of the zero emission facility;` (ii) the amount of power generated annually` `for each of the years 2005 through 2015, and the` `projected zero emission credits to be generated` `over the remaining useful life of the zero emission` `facility, which shall be used to determine the` `capability of each facility;` (iii) the annual zero emission facility cost` `projections, expressed on a per megawatthour` `basis, over the next 6 delivery years, which shall` `include the following: operation and maintenance` `expenses; fully allocated overhead costs, which` `shall be allocated using the methodology developed` `by the Institute for Nuclear Power Operations;` `fuel expenditures; non-fuel capital expenditures;` `spent fuel expenditures; a return on working` `capital; the cost of operational and market risks` `that could be avoided by ceasing operation; and any` `other costs necessary for continued operations,` `provided that "necessary" means, for purposes of` `this item (iii), that the costs could reasonably be` `avoided only by ceasing operations of the zero` `emission facility; and` (iv) a commitment to continue operating, for` `the duration of the contract or contracts executed` `under the procurement held under this subsection` `(d-5), the zero emission facility that produces` `the zero emission credits to be procured in the` `procurement.` ``The information described in item (iii) of this` `subparagraph (A) may be submitted on a confidential basis` `and shall be treated and maintained by the Agency, the` `procurement administrator, and the Commission as` `confidential and proprietary and exempt from disclosure` `under subparagraphs (a) and (g) of paragraph (1) of Section` `7 of the Freedom of Information Act. The Office of Attorney` `General shall have access to, and maintain the` `confidentiality of, such information pursuant to Section` `6.5 of the Attorney General Act. `(B) The price for each zero emission credit` `procured under this subsection (d-5) for each delivery` `year shall be in an amount that equals the Social Cost` `of Carbon, expressed on a price per megawatthour basis.` `However, to ensure that the procurement remains` `affordable to retail customers in this State if` `electricity prices increase, the price in an` `applicable delivery year shall be reduced below the` `Social Cost of Carbon by the amount ("Price` `Adjustment") by which the market price index for the` `applicable delivery year exceeds the baseline market` `price index for the consecutive 12-month period ending` `May 31, 2016. If the Price Adjustment is greater than` `or equal to the Social Cost of Carbon in an applicable` `delivery year, then no payments shall be due in that` `delivery year. The components of this calculation are` `defined as follows:` (i) Social Cost of Carbon: The Social Cost of` `Carbon is $16.50 per megawatthour, which is based` `on the U.S. Interagency Working Group on Social` `Cost of Carbon's price in the August 2016 Technical` `Update using a 3% discount rate, adjusted for` `inflation for each year of the program. Beginning` `with the delivery year commencing June 1, 2023, the` `price per megawatthour shall increase by $1 per` `megawatthour, and continue to increase by an` `additional $1 per megawatthour each delivery year` `thereafter.` (ii) Baseline market price index: The baseline` `market price index for the consecutive 12-month` `period ending May 31, 2016 is $31.40 per` `megawatthour, which is based on the sum of (aa) the` `average day-ahead energy price across all hours of` `such 12-month period at the PJM Interconnection` `LLC Northern Illinois Hub, (bb) 50% multiplied by` `the Base Residual Auction, or its successor,` `capacity price for the rest of the RTO zone group` `determined by PJM Interconnection LLC, divided by` `24 hours per day, and (cc) 50% multiplied by the` `Planning Resource Auction, or its successor,` `capacity price for Zone 4 determined by the` `Midcontinent Independent System Operator, Inc.,` `divided by 24 hours per day. (iii) Market price index: The market price` `index for a delivery year shall be the sum of` `projected energy prices and projected capacity` `prices determined as follows:` ``(aa) Projected energy prices: the` `projected energy prices for the applicable` `delivery year shall be calculated once for the` `year using the forward market price for the PJM` `Interconnection, LLC Northern Illinois Hub.` `The forward market price shall be calculated as` `follows: the energy forward prices for each` `month of the applicable delivery year averaged` `for each trade date during the calendar year` `immediately preceding that delivery year to` `produce a single energy forward price for the` `delivery year. The forward market price` `calculation shall use data published by the` `Intercontinental Exchange, or its successor.` ``(bb) Projected capacity prices:` `(I) For the delivery years commencing` `June 1, 2017, June 1, 2018, and June 1,` `2019, the projected capacity price shall` `be equal to the sum of (1) 50% multiplied` `by the Base Residual Auction, or its` `successor, price for the rest of the RTO` `zone group as determined by PJM` `Interconnection LLC, divided by 24 hours` `per day and, (2) 50% multiplied by the` `resource auction price determined in the` `resource auction administered by the` `Midcontinent Independent System Operator,` `Inc., in which the largest percentage of` `load cleared for Local Resource Zone 4,` `divided by 24 hours per day, and where such` `price is determined by the Midcontinent` `Independent System Operator, Inc.` `(II) For the delivery year commencing` `June 1, 2020, and each year thereafter, the` `projected capacity price shall be equal to` `the sum of (1) 50% multiplied by the Base` `Residual Auction, or its successor, price` `for the ComEd zone as determined by PJM` `Interconnection LLC, divided by 24 hours` `per day, and (2) 50% multiplied by the` `resource auction price determined in the` `resource auction administered by the` `Midcontinent Independent System Operator,` `Inc., in which the largest percentage of` `load cleared for Local Resource Zone 4,` `divided by 24 hours per day, and where such` `price is determined by the Midcontinent` `Independent System Operator, Inc.` `For purposes of this subsection (d-5):` "Rest of the RTO" and "ComEd Zone" shall have` `the meaning ascribed to them by PJM` `Interconnection, LLC. "RTO" means regional transmission` `organization. `(C) No later than 45 days after the effective date` `of this amendatory Act of the 99th General Assembly,` `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 this` `amendatory Act of the 99th General Assembly and would` `cease to exist if the procurements were not held,` `including the preservation of zero emission` `facilities. The plan shall also describe in detail how` `each public interest factor shall be considered and` `weighted in the bid selection process to ensure that` `the public interest criteria are applied to the` `procurement and given full effect.` `For purposes of developing the plan, the Agency` `shall consider any reports issued by a State agency,` `board, or commission under House Resolution 1146 of the` `98th General Assembly and paragraph (4) of subsection` `(d) of Section 1-75 of this Act, 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 the effective date of` `this amendatory Act of the 99th General Assembly, the` `Agency shall revise the plan as necessary based on the` `comments received and file its zero emission standard` `procurement plan with the Commission.` `If the Commission determines that the plan will` `result in the procurement of cost-effective zero` `emission credits, then the Commission shall, after` `notice and hearing, but no later than 45 days after the` `Agency filed the plan, approve the plan or approve with` `modification. For purposes of this subsection (d-5),` `"cost effective" means the projected costs of` `procuring zero emission credits from zero emission` `facilities do not cause the limit stated in paragraph` `(2) of this subsection to be exceeded.` `(C-5) As part of the Commission's review and` `acceptance or rejection of the procurement results,` `the Commission shall, in its public notice of` `successful bidders:` (i) identify how the winning bids satisfy the` `public interest criteria described in subparagraph` `(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 this amendatory Act of the 99th General` `Assembly and would have ceased to exist if the` `procurements had not been held, such as the` `preservation of zero emission facilities;` (iii) quantify the environmental benefit of` `preserving the resources identified in item (ii)` `of this subparagraph (C-5), including the` `following:` ``(aa) the value of avoided greenhouse gas` `emissions measured as the product of the zero` `emission facilities' output over the contract` `term multiplied by the U.S. Environmental` `Protection Agency eGrid subregion carbon` `dioxide emission rate and the U.S. Interagency` `Working Group on Social Cost of Carbon's price` `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 Section 1-75 of this Act;` `and` `(II) the price, or if there is more` `than one price, the average of the prices,` `paid for renewable energy credits from new` `utility-scale solar projects and` `brownfield site photovoltaic projects in` `the procurement events specified in item` `(ii) of subparagraph (G) of paragraph (1)` `of subsection (c) of Section 1-75 of this` `Act and, after January 1, 2015, renewable` `energy credits from photovoltaic` `distributed generation projects in` `procurement events held under subsection` `(c) of Section 1-75 of this Act. `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 this` `amendatory Act of the 99th General Assembly, the Agency` `and Commission may, as appropriate, modify the various` `dates and timelines under this subparagraph and` `subparagraphs (C) and (D) of this paragraph (1). The` `procurement and plan approval processes required by` `this subsection (d-5) shall be conducted in` `conjunction with the procurement and plan approval` `processes required by subsection (c) of this Section` `and Section 16-111.5 of the Public Utilities Act, to` `the extent practicable. Notwithstanding whether a` `procurement event is conducted under Section 16-111.5` `of the Public Utilities Act, the Agency shall` `immediately initiate a procurement process on the` `effective date of this amendatory Act of the 99th` `General Assembly.` `(D) Following the procurement event described in` `this paragraph (1) and consistent with subparagraph` `(B) of this paragraph (1), the Agency shall calculate` `the payments to be made under each contract for the` `next delivery year based on the market price index for` `that delivery year. The Agency shall publish the` `payment calculations no later than May 25, 2017 and` `every May 25 thereafter.` `(E) Notwithstanding the requirements of this` `subsection (d-5), the contracts executed under this` `subsection (d-5) shall provide that the zero emission` `facility may, as applicable, suspend or terminate` `performance under the contracts in the following` `instances:` (i) A zero emission facility shall be excused` `from its performance under the contract for any` `cause beyond the control of the resource,` `including, but not restricted to, acts of God,` `flood, drought, earthquake, storm, fire,` `lightning, epidemic, war, riot, civil disturbance` `or disobedience, labor dispute, labor or material` `shortage, sabotage, acts of public enemy,` `explosions, orders, regulations or restrictions` `imposed by governmental, military, or lawfully` `established civilian authorities, which, in any of` `the foregoing cases, by exercise of commercially` `reasonable efforts the zero emission facility` `could not reasonably have been expected to avoid,` `and which, by the exercise of commercially` `reasonable efforts, it has been unable to` `overcome. In such event, the zero emission` `facility shall be excused from performance for the` `duration of the event, including, but not limited` `to, delivery of zero emission credits, and no` `payment shall be due to the zero emission facility` `during the duration of the event.` (ii) A zero emission facility shall be` `permitted to terminate the contract if legislation` `is enacted into law by the General Assembly that` `imposes or authorizes a new tax, special` `assessment, or fee on the generation of` `electricity, the ownership or leasehold of a` `generating unit, or the privilege or occupation of` `such generation, ownership, or leasehold of` `generation units by a zero emission facility.` `However, the provisions of this item (ii) do not` `apply to any generally applicable tax, special` `assessment or fee, or requirements imposed by` `federal law.` (iii) A zero emission facility shall be` `permitted to terminate the contract in the event` `that the resource requires capital expenditures in` `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 this subparagraph (E, of` `this paragraph (1), then the Commission shall reopen` `the docket in which the Commission approved the zero` `emission standard procurement plan under subparagraph` `(C) of this paragraph (1) and, after notice and` `hearing, enter an order acknowledging the contract` `termination election if such termination is consistent` `with the provisions of this subsection (d-5).` ``(2) For purposes of this subsection (d-5), the amount` `paid per kilowatthour means the total amount paid for` `electric service expressed on a per kilowatthour basis. For` `purposes of this subsection (d-5), the total amount paid` `for electric service includes, without limitation, amounts` `paid for supply, transmission, distribution, surcharges,` `and add-on taxes.` ``Notwithstanding the requirements of this subsection` `(d-5), the contracts executed under this subsection (d-5)` `shall provide that the total of zero emission credits` `procured under a procurement plan shall be subject to the` `limitations of this paragraph (2). For each delivery year,` `the contractual volume receiving payments in such year` `shall be reduced for all retail customers based on the` `amount necessary to limit the net increase that delivery` `year to the costs of those credits included in the amounts` `paid by eligible retail customers in connection with` `electric service to no more than 1.65% of the amount paid` `per kilowatthour by eligible retail customers during the` `year ending May 31, 2009. The result of this computation` `shall apply to and reduce the procurement for all retail` `customers, and all those customers shall pay the same` `single, uniform cents per kilowatthour charge under` `subsection (k) of Section 16-108 of the Public Utilities` `Act. To arrive at a maximum dollar amount of zero emission` `credits to be paid for the particular delivery year, the` `resulting per kilowatthour amount shall be applied to the` `actual amount of kilowatthours of electricity delivered by` `the electric utility in the delivery year immediately prior` `to the procurement, to all retail customers in its service` `territory. Unpaid contractual volume for any delivery year` `shall be paid in any subsequent delivery year in which such` `payments can be made without exceeding the amount specified` `in this paragraph (2). The calculations required by this` `paragraph (2) shall be made only once for each procurement` `plan year. Once the determination as to the amount of zero` `emission credits to be paid is made based on the` `calculations set forth in this paragraph (2), no subsequent` `rate impact determinations shall be made and no adjustments` `to those contract amounts shall be allowed. All costs` `incurred under those contracts and in implementing this` `subsection (d-5) shall be recovered by the electric utility` `as provided in this Section.` ``No later than June 30, 2019, the Commission shall` `review the limitation on the amount of zero emission` `credits procured under this subsection (d-5) and report to` `the General Assembly its findings as to whether that` `limitation unduly constrains the procurement of` `cost-effective zero emission credits. ``(3) Six years after the execution of a contract under` `this subsection (d-5), the Agency shall determine whether` `the actual zero emission credit payments received by the` `supplier over the 6-year period exceed the Average ZEC` `Payment. In addition, at the end of the term of a contract` `executed under this subsection (d-5), or at the time, if` `any, a zero emission facility's contract is terminated` `under subparagraph (E) of paragraph (1) of this subsection` `(d-5), then the Agency shall determine whether the actual` `zero emission credit payments received by the supplier over` `the term of the contract exceed the Average ZEC Payment,` `after taking into account any amounts previously credited` `back to the utility under this paragraph (3). If the Agency` `determines that the actual zero emission credit payments` `received by the supplier over the relevant period exceed` `the Average ZEC Payment, then the supplier shall credit the` `difference back to the utility. The amount of the credit` `shall be remitted to the applicable electric utility no` `later than 120 days after the Agency's determination, which` `the utility shall reflect as a credit on its retail` `customer bills as soon as practicable; however, the credit` `remitted to the utility shall not exceed the total amount` `of payments received by the facility under its contract.` ``For purposes of this Section, the Average ZEC Payment` `shall be calculated by multiplying the quantity of zero` `emission credits delivered under the contract times the` `average contract price. The average contract price shall be` `determined by subtracting the amount calculated under` `subparagraph (B) of this paragraph (3) from the amount` `calculated under subparagraph (A) of this paragraph (3), as` `follows:` `(A) The average of the Social Cost of Carbon, as` `defined in subparagraph (B) of paragraph (1) of this` `subsection (d-5), during the term of the contract.` `(B) The average of the market price indices, as` `defined in subparagraph (B) of paragraph (1) of this` `subsection (d-5), during the term of the contract,` `minus the baseline market price index, as defined in` `subparagraph (B) of paragraph (1) of this subsection` `(d-5).` If the subtraction yields a negative number, then the` `Average ZEC Payment shall be zero. ``(4) Cost-effective zero emission credits procured from` `zero emission facilities shall satisfy the applicable` `definitions set forth in Section 1-10 of this Act.` ``(5) The electric utility shall retire all zero emission` `credits used to comply with the requirements of this` `subsection (d-5).` ``(6) Electric utilities shall be entitled to recover all` `of the costs associated with the procurement of zero` `emission credits through an automatic adjustment clause` `tariff in accordance with subsection (k) and (m) of Section` `16-108 of the Public Utilities Act, and the contracts` `executed under this subsection (d-5) shall provide that the` `utilities' payment obligations under such contracts shall` `be reduced if an adjustment is required under subsection` `(m) of Section 16-108 of the Public Utilities Act.` ``(7) This subsection (d-5) shall become inoperative on` `January 1, 2028. (e) The draft procurement plans are subject to public` `comment, as required by Section 16-111.5 of the Public` `Utilities Act.` (f) The Agency shall submit the final procurement plan to` `the Commission. The Agency shall revise a procurement plan if` `the Commission determines that it does not meet the standards` `set forth in Section 16-111.5 of the Public Utilities Act.` (g) The Agency shall assess fees to each affected utility` `to recover the costs incurred in preparation of the annual` `procurement plan for the utility.` (h) The Agency shall assess fees to each bidder to recover` `the costs incurred in connection with a competitive procurement` `process. (i) A renewable energy credit, carbon emission credit, or` `zero emission credit can only be used once to comply with a` `single portfolio or other standard as set forth in subsection` `(c), subsection (d), or subsection (d-5) of this Section,` `respectively. A renewable energy credit, carbon emission` `credit, or zero emission credit cannot be used to satisfy the` `requirements of more than one standard. If more than one type` `of credit is issued for the same megawatt hour of energy, only` `one credit can be used to satisfy the requirements of a single` `standard. After such use, the credit must be retired together` `with any other credits issued for the same megawatt hour of` `energy. `(Source: P.A. 98-463, eff. 8-16-13; 99-536, eff. 7-8-16.)` Section 10.``The Illinois Procurement Code is amended by` `changing Section 20-10 as follows:` `` (30 ILCS 500/20-10) ` (Text of Section from P.A. 96-159, 96-588, 97-96, 97-895,` `and 98-1076)` Sec. 20-10.``Competitive sealed bidding; reverse auction. (a) Conditions for use. All contracts shall be awarded by` `competitive sealed bidding except as otherwise provided in` `Section 20-5. (b) Invitation for bids. An invitation for bids shall be` `issued and shall include a purchase description and the` `material contractual terms and conditions applicable to the` `procurement. (c) Public notice. Public notice of the invitation for bids` `shall be published in the Illinois Procurement Bulletin at` `least 14 calendar days before the date set in the invitation` `for the opening of bids. (d) Bid opening. Bids shall be opened publicly in the` `presence of one or more witnesses at the time and place` `designated in the invitation for bids. The name of each bidder,` `the amount of each bid, and other relevant information as may` `be specified by rule shall be recorded. After the award of the` `contract, the winning bid and the record of each unsuccessful` `bid shall be open to public inspection. (e) Bid acceptance and bid evaluation. Bids shall be` `unconditionally accepted without alteration or correction,` `except as authorized in this Code. Bids shall be evaluated` `based on the requirements set forth in the invitation for bids,` `which may include criteria to determine acceptability such as` `inspection, testing, quality, workmanship, delivery, and` `suitability for a particular purpose. Those criteria that will` `affect the bid price and be considered in evaluation for award,` `such as discounts, transportation costs, and total or life` `cycle costs, shall be objectively measurable. The invitation` `for bids shall set forth the evaluation criteria to be used. (f) Correction or withdrawal of bids. Correction or` `withdrawal of inadvertently erroneous bids before or after` `award, or cancellation of awards of contracts based on bid` `mistakes, shall be permitted in accordance with rules. After` `bid opening, no changes in bid prices or other provisions of` `bids prejudicial to the interest of the State or fair` `competition shall be permitted. All decisions to permit the` `correction or withdrawal of bids based on bid mistakes shall be` `supported by written determination made by a State purchasing` `officer. (g) Award. The contract shall be awarded with reasonable` `promptness by written notice to the lowest responsible and` `responsive bidder whose bid meets the requirements and criteria` `set forth in the invitation for bids, except when a State` `purchasing officer determines it is not in the best interest of` `the State and by written explanation determines another bidder` `shall receive the award. The explanation shall appear in the` `appropriate volume of the Illinois Procurement Bulletin. The` `written explanation must include: ``(1) a description of the agency's needs;` ``(2) a determination that the anticipated cost will be` `fair and reasonable;` ``(3) a listing of all responsible and responsive` `bidders; and` ``(4) the name of the bidder selected, the total contract` `price, and the reasons for selecting that bidder.` Each chief procurement officer may adopt guidelines to` `implement the requirements of this subsection (g).` The written explanation shall be filed with the Legislative` `Audit Commission and the Procurement Policy Board, and be made` `available for inspection by the public, within 30 calendar days` `after the agency's decision to award the contract.` (h) Multi-step sealed bidding. When it is considered` `impracticable to initially prepare a purchase description to` `support an award based on price, an invitation for bids may be` `issued requesting the submission of unpriced offers to be` `followed by an invitation for bids limited to those bidders` `whose offers have been qualified under the criteria set forth` `in the first solicitation. (i) Alternative procedures. Notwithstanding any other` `provision of this Act to the contrary, the Director of the` `Illinois Power Agency may create alternative bidding` `procedures to be used in procuring professional services under` `Section 1-56, subsections `subsection``(a)``and (c)``of Section` `1-75 and subsection (d) of Section 1-78 of the Illinois Power` `Agency Act and Section 16-111.5(c) of the Public Utilities Act` `and to procure renewable energy resources under Section 1-56 of` `the Illinois Power Agency Act. These alternative procedures` `shall be set forth together with the other criteria contained` `in the invitation for bids, and shall appear in the appropriate` `volume of the Illinois Procurement Bulletin.` (j) Reverse auction. Notwithstanding any other provision` `of this Section and in accordance with rules adopted by the` `chief procurement officer, that chief procurement officer may` `procure supplies or services through a competitive electronic` `auction bidding process after the chief procurement officer` `determines that the use of such a process will be in the best` `interest of the State. The chief procurement officer shall` `publish that determination in his or her next volume of the` `Illinois Procurement Bulletin.` An invitation for bids shall be issued and shall include` `(i) a procurement description, (ii) all contractual terms,` `whenever practical, and (iii) conditions applicable to the` `procurement, including a notice that bids will be received in` `an electronic auction manner.` Public notice of the invitation for bids shall be given in` `the same manner as provided in subsection (c).` Bids shall be accepted electronically at the time and in` `the manner designated in the invitation for bids. During the` `auction, a bidder's price shall be disclosed to other bidders.` `Bidders shall have the opportunity to reduce their bid prices` `during the auction. At the conclusion of the auction, the` `record of the bid prices received and the name of each bidder` `shall be open to public inspection.` After the auction period has terminated, withdrawal of bids` `shall be permitted as provided in subsection (f).` The contract shall be awarded within 60 calendar days after` `the auction by written notice to the lowest responsible bidder,` `or all bids shall be rejected except as otherwise provided in` `this Code. Extensions of the date for the award may be made by` `mutual written consent of the State purchasing officer and the` `lowest responsible bidder.` This subsection does not apply to (i) procurements of` `professional and artistic services, (ii) telecommunications` `services, communication services, and information services,` `and (iii) contracts for construction projects, including` `design professional services.` `(Source: P.A. 97-96, eff. 7-13-11; 97-895, eff. 8-3-12;` `98-1076, eff. 1-1-15.) (Text of Section from P.A. 96-159, 96-795, 97-96, 97-895,` `and 98-1076) Sec. 20-10.``Competitive sealed bidding; reverse auction. (a) Conditions for use. All contracts shall be awarded by` `competitive sealed bidding except as otherwise provided in` `Section 20-5. (b) Invitation for bids. An invitation for bids shall be` `issued and shall include a purchase description and the` `material contractual terms and conditions applicable to the` `procurement. (c) Public notice. Public notice of the invitation for bids` `shall be published in the Illinois Procurement Bulletin at` `least 14 calendar days before the date set in the invitation` `for the opening of bids. (d) Bid opening. Bids shall be opened publicly in the` `presence of one or more witnesses at the time and place` `designated in the invitation for bids. The name of each bidder,` `the amount of each bid, and other relevant information as may` `be specified by rule shall be recorded. After the award of the` `contract, the winning bid and the record of each unsuccessful` `bid shall be open to public inspection. (e) Bid acceptance and bid evaluation. Bids shall be` `unconditionally accepted without alteration or correction,` `except as authorized in this Code. Bids shall be evaluated` `based on the requirements set forth in the invitation for bids,` `which may include criteria to determine acceptability such as` `inspection, testing, quality, workmanship, delivery, and` `suitability for a particular purpose. Those criteria that will` `affect the bid price and be considered in evaluation for award,` `such as discounts, transportation costs, and total or life` `cycle costs, shall be objectively measurable. The invitation` `for bids shall set forth the evaluation criteria to be used. (f) Correction or withdrawal of bids. Correction or` `withdrawal of inadvertently erroneous bids before or after` `award, or cancellation of awards of contracts based on bid` `mistakes, shall be permitted in accordance with rules. After` `bid opening, no changes in bid prices or other provisions of` `bids prejudicial to the interest of the State or fair` `competition shall be permitted. All decisions to permit the` `correction or withdrawal of bids based on bid mistakes shall be` `supported by written determination made by a State purchasing` `officer. (g) Award. The contract shall be awarded with reasonable` `promptness by written notice to the lowest responsible and` `responsive bidder whose bid meets the requirements and criteria` `set forth in the invitation for bids, except when a State` `purchasing officer determines it is not in the best interest of` `the State and by written explanation determines another bidder` `shall receive the award. The explanation shall appear in the` `appropriate volume of the Illinois Procurement Bulletin. The` `written explanation must include: ``(1) a description of the agency's needs;` ``(2) a determination that the anticipated cost will be` `fair and reasonable;` ``(3) a listing of all responsible and responsive` `bidders; and` ``(4) the name of the bidder selected, the total contract` `price, and the reasons for selecting that bidder.` Each chief procurement officer may adopt guidelines to` `implement the requirements of this subsection (g).` The written explanation shall be filed with the Legislative` `Audit Commission and the Procurement Policy Board, and be made` `available for inspection by the public, within 30 days after` `the agency's decision to award the contract.` (h) Multi-step sealed bidding. When it is considered` `impracticable to initially prepare a purchase description to` `support an award based on price, an invitation for bids may be` `issued requesting the submission of unpriced offers to be` `followed by an invitation for bids limited to those bidders` `whose offers have been qualified under the criteria set forth` `in the first solicitation. (i) Alternative procedures. Notwithstanding any other` `provision of this Act to the contrary, the Director of the` `Illinois Power Agency may create alternative bidding` `procedures to be used in procuring professional services under` `subsections `subsection``(a)``and (c)``of Section 1-75 and` `subsection (d) of Section 1-78 of the Illinois Power Agency Act` `and Section 16-111.5(c) of the Public Utilities Act and to` `procure renewable energy resources under Section 1-56 of the` `Illinois Power Agency Act. These alternative procedures shall` `be set forth together with the other criteria contained in the` `invitation for bids, and shall appear in the appropriate volume` `of the Illinois Procurement Bulletin.` (j) Reverse auction. Notwithstanding any other provision` `of this Section and in accordance with rules adopted by the` `chief procurement officer, that chief procurement officer may` `procure supplies or services through a competitive electronic` `auction bidding process after the chief procurement officer` `determines that the use of such a process will be in the best` `interest of the State. The chief procurement officer shall` `publish that determination in his or her next volume of the` `Illinois Procurement Bulletin.` An invitation for bids shall be issued and shall include` `(i) a procurement description, (ii) all contractual terms,` `whenever practical, and (iii) conditions applicable to the` `procurement, including a notice that bids will be received in` `an electronic auction manner.` Public notice of the invitation for bids shall be given in` `the same manner as provided in subsection (c).` Bids shall be accepted electronically at the time and in` `the manner designated in the invitation for bids. During the` `auction, a bidder's price shall be disclosed to other bidders.` `Bidders shall have the opportunity to reduce their bid prices` `during the auction. At the conclusion of the auction, the` `record of the bid prices received and the name of each bidder` `shall be open to public inspection.` After the auction period has terminated, withdrawal of bids` `shall be permitted as provided in subsection (f).` The contract shall be awarded within 60 calendar days after` `the auction by written notice to the lowest responsible bidder,` `or all bids shall be rejected except as otherwise provided in` `this Code. Extensions of the date for the award may be made by` `mutual written consent of the State purchasing officer and the` `lowest responsible bidder.` This subsection does not apply to (i) procurements of` `professional and artistic services, (ii) telecommunications` `services, communication services, and information services,` `and (iii) contracts for construction projects, including` `design professional services.` `(Source: P.A. 97-96, eff. 7-13-11; 97-895, eff. 8-3-12;` `98-1076, eff. 1-1-15``.)` Section 15.``The Public Utilities Act is amended by changing` `Sections 5-117, 5-202.1, 8-103, 8-104, 16-107, 16-107.5,` `16-108, 16-108.5, 16-111.1, 16-111.5, 16-111.5B, 16-111.7,` `16-115D, 16-119A, 16-127, and 16-128A and by adding Sections` `8-103B, 9-107, 16-107.6, 16-108.10, 16-108.11, 16-108.12,` `16-108.15, and 16-108.16 as follows:` (220 ILCS 5/5-117)` Sec. 5-117.``Supplier diversity goals.` (a) The public policy of this State is to collaboratively` `work with companies that serve Illinois residents to improve` `their supplier diversity in a non-antagonistic manner.` (b) The Commission shall require all gas, electric, and` `water companies with at least 100,000 customers under its` `authority``, as well as suppliers of wind energy, solar energy,` `hydroelectricity, nuclear energy, and any other supplier of` `energy within this State,``to submit an annual report by April` `15, 2015 and every April 15 thereafter, in a searchable Adobe` `PDF format, on all procurement goals and actual spending for` `female-owned, minority-owned, veteran-owned, and small` `business enterprises in the previous calendar year. These goals` `shall be expressed as a percentage of the total work performed` `by the entity submitting the report, and the actual spending` `for all female-owned, minority-owned, veteran-owned, and small` `business enterprises shall also be expressed as a percentage of` `the total work performed by the entity submitting the report.` (c) Each participating company in its annual report shall` `include the following information:` ``(1) an explanation of the plan for the next year to` `increase participation;` ``(2) an explanation of the plan to increase the goals;` ``(3) the areas of procurement each company shall be` `actively seeking more participation in in the next year;` ``(4) an outline of the plan to alert and encourage` `potential vendors in that area to seek business from the` `company;` ``(5) an explanation of the challenges faced in finding` `quality vendors and offer any suggestions for what the` `Commission could do to be helpful to identify those` `vendors;` ``(6) a list of the certifications the company` `recognizes;` ``(7) the point of contact for any potential vendor who` `wishes to do business with the company and explain the` `process for a vendor to enroll with the company as a` `minority-owned, women-owned, or veteran-owned company; and` ``(8) any particular success stories to encourage other` `companies to emulate best practices.` (d) Each annual report shall include as much State-specific` `data as possible. If the submitting entity does not submit` `State-specific data, then the company shall include any` `national data it does have and explain why it could not submit` `State-specific data and how it intends to do so in future` `reports, if possible.` (e) Each annual report shall include the rules,` `regulations, and definitions used for the procurement goals in` `the company's annual report.` (f) The Commission and all participating entities shall` `hold an annual workshop open to the public in 2015 and every` `year thereafter on the state of supplier diversity to` `collaboratively seek solutions to structural impediments to` `achieving stated goals, including testimony from each` `participating entity as well as subject matter experts and` `advocates. The Commission shall publish a database on its` `website of the point of contact for each participating entity` `for supplier diversity, along with a list of certifications` `each company recognizes from the information submitted in each` `annual report. The Commission shall publish each annual report` `on its website and shall maintain each annual report for at` `least 5 years. `(Source: P.A. 98-1056, eff. 8-26-14.)` (220 ILCS 5/5-202.1) ` Sec. 5-202.1.``Misrepresentation before Commission;` `penalty. (a) Any person or corporation, as defined in Sections 3-113` `and 3-114 of this Act, who knowingly misrepresents facts``to the` `Commission in response to any Commission contact, inquiry or` `discussion``or knowingly aids another in doing so``in response to` `any Commission contact, inquiry or discussion``or knowingly` `permits another to misrepresent facts through testimony or the` `offering or withholding of material information in any` `proceeding shall be subject to a civil penalty. Whenever the` `Commission is of the opinion that a person or corporation is` `misrepresenting or has misrepresented facts, the Commission` `may initiate a proceeding to determine whether a` `misrepresentation has in fact occurred. If the Commission finds` `that a person or corporation has violated this Section, the` `Commission shall impose a penalty of not less than $1,000``and` `not greater than $500,000``. Each misrepresentation of a fact` `found by the Commission shall constitute a separate and` `distinct violation. In determining the amount of the penalty to` `be assessed, the Commission may consider any matters of record` `in aggravation or mitigation of the penalty, as set forth in` `Section 4-203, including but not limited to the following: `` ``(1) the presence or absence of due diligence on the` `part of the violator in attempting to comply with the Act; `` ``(2) any economic benefits accrued, or expected to be` `accrued, by the violator because of the misrepresentation;` `and `` ``(3) the amount of monetary penalty that will serve to` `deter further violations by the violator and to otherwise` `aid in enhancing voluntary compliance with the Act. (b) Any action to enforce civil penalties arising under` `this Section shall be undertaken pursuant to Section 4-203. (c) For purposes of this Section, "Commission," as defined` `in Section 3-102, refers to any Commissioner, agent, or` `employee of the Illinois Commerce commission, and also refers` `to any other person engaged to represent the Commission in` `carrying out its regulatory or law enforcement obligations. `(Source: P.A. 93-457, eff. 8-8-03.) ` (220 ILCS 5/8-103) `` Sec. 8-103.``Energy efficiency and demand-response` `measures.` (a) It is the policy of the State that electric utilities` `are required to use cost-effective energy efficiency and` `demand-response measures to reduce delivery load. Requiring` `investment in cost-effective energy efficiency and` `demand-response measures will reduce direct and indirect costs` `to consumers by decreasing environmental impacts and by` `avoiding or delaying the need for new generation, transmission,` `and distribution infrastructure. It serves the public interest` `to allow electric utilities to recover costs for reasonably and` `prudently incurred expenses for energy efficiency and` `demand-response measures. As used in this Section,` `"cost-effective" means that the measures satisfy the total` `resource cost test. The low-income measures described in` `subsection (f)(4) of this Section shall not be required to meet` `the total resource cost test. For purposes of this Section, the` `terms "energy-efficiency", "demand-response", "electric` `utility", and "total resource cost test" shall have the` `meanings set forth in the Illinois Power Agency Act. For` `purposes of this Section, the amount per kilowatthour means the` `total amount paid for electric service expressed on a per` `kilowatthour basis. For purposes of this Section, the total` `amount paid for electric service includes without limitation` `estimated amounts paid for supply, transmission, distribution,` `surcharges, and add-on-taxes.` (a-5) This Section applies to electric utilities serving` `500,000 or less but more than 200,000 retail customers in this` `State. Through December 31, 2017, this Section also applies to` `electric utilities serving more than 500,000 retail customers` `in the State. (b) Electric utilities shall implement cost-effective` `energy efficiency measures to meet the following incremental` `annual energy savings goals:` ``(1) 0.2% of energy delivered in the year commencing` `June 1, 2008;` ``(2) 0.4% of energy delivered in the year commencing` `June 1, 2009;` ``(3) 0.6% of energy delivered in the year commencing` `June 1, 2010;` ``(4) 0.8% of energy delivered in the year commencing` `June 1, 2011;` ``(5) 1% of energy delivered in the year commencing June` `1, 2012;` ``(6) 1.4% of energy delivered in the year commencing` `June 1, 2013;` ``(7) 1.8% of energy delivered in the year commencing` `June 1, 2014; and` ``(8) 2% of energy delivered in the year commencing June` `1, 2015 and each year thereafter.` Electric utilities may comply with this subsection (b) by` `meeting the annual incremental savings goal in the applicable` `year or by showing that the total cumulative annual savings` `within a 3-year planning period associated with measures` `implemented after May 31, 2014 was equal to the sum of each` `annual incremental savings requirement from May 31, 2014` `through the end of the applicable year.` (c) Electric utilities shall implement cost-effective` `demand-response measures to reduce peak demand by 0.1% over the` `prior year for eligible retail customers, as defined in Section` `16-111.5 of this Act, and for customers that elect hourly` `service from the utility pursuant to Section 16-107 of this` `Act, provided those customers have not been declared` `competitive. This requirement commences June 1, 2008 and` `continues for 10 years.` (d) Notwithstanding the requirements of subsections (b)` `and (c) of this Section, an electric utility shall reduce the` `amount of energy efficiency and demand-response measures` `implemented over a 3-year planning period by an amount` `necessary to limit the estimated average annual increase in the` `amounts paid by retail customers in connection with electric` `service due to the cost of those measures to:` ``(1) in 2008, no more than 0.5% of the amount paid per` `kilowatthour by those customers during the year ending May` `31, 2007;` ``(2) in 2009, the greater of an additional 0.5% of the` `amount paid per kilowatthour by those customers during the` `year ending May 31, 2008 or 1% of the amount paid per` `kilowatthour by those customers during the year ending May` `31, 2007;` ``(3) in 2010, the greater of an additional 0.5% of the` `amount paid per kilowatthour by those customers during the` `year ending May 31, 2009 or 1.5% of the amount paid per` `kilowatthour by those customers during the year ending May` `31, 2007;` ``(4) 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 2% of the amount paid per` `kilowatthour by those customers during the year ending May` `31, 2007; and` ``(5) thereafter, the amount of energy efficiency and` `demand-response measures implemented for any single year` `shall be reduced by an amount necessary to limit the` `estimated average net increase due to the cost of these` `measures 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` `for these measures in 2011.` No later than June 30, 2011, the Commission shall review` `the limitation on the amount of energy efficiency and` `demand-response measures implemented pursuant to this Section` `and report to the General Assembly its findings as to whether` `that limitation unduly constrains the procurement of energy` `efficiency and demand-response measures.` (e) Electric utilities shall be responsible for overseeing` `the design, development, and filing of energy efficiency and` `demand-response plans with the Commission. Electric utilities` `shall implement 100% of the demand-response measures in the` `plans. Electric utilities shall implement 75% of the energy` `efficiency measures approved by the Commission, and may, as` `part of that implementation, outsource various aspects of` `program development and implementation. The remaining 25% of` `those energy efficiency measures approved by the Commission` `shall be implemented by the Department of Commerce and Economic` `Opportunity, and must be designed in conjunction with the` `utility and the filing process. The Department may outsource` `development and implementation of energy efficiency measures.` `A minimum of 10% of the entire portfolio of cost-effective` `energy efficiency measures shall be procured from units of` `local government, municipal corporations, school districts,` `and community college districts. The Department shall` `coordinate the implementation of these measures.` The apportionment of the dollars to cover the costs to` `implement the Department's share of the portfolio of energy` `efficiency measures shall be made to the Department once the` `Department has executed rebate agreements, grants, or` `contracts for energy efficiency measures and provided` `supporting documentation for those rebate agreements, grants,` `and contracts to the utility. The Department is authorized to` `adopt any rules necessary and prescribe procedures in order to` `ensure compliance by applicants in carrying out the purposes of` `rebate agreements for energy efficiency measures implemented` `by the Department made under this Section.` The details of the measures implemented by the Department` `shall be submitted by the Department to the Commission in` `connection with the utility's filing regarding the energy` `efficiency and demand-response measures that the utility` `implements.` A utility providing approved energy efficiency and` `demand-response measures in the State shall be permitted to` `recover costs of those measures through an automatic adjustment` `clause tariff filed with and approved by the Commission. The` `tariff shall be established outside the context of a general` `rate case. Each year the Commission shall initiate a review to` `reconcile any amounts collected with the actual costs and to` `determine the required adjustment to the annual tariff factor` `to match annual expenditures.` Each utility shall include, in its recovery of costs, the` `costs estimated for both the utility's and the Department's` `implementation of energy efficiency and demand-response` `measures. Costs collected by the utility for measures` `implemented by the Department shall be submitted to the` `Department pursuant to Section 605-323 of the Civil` `Administrative Code of Illinois, shall be deposited into the` `Energy Efficiency Portfolio Standards Fund, and shall be used` `by the Department solely for the purpose of implementing these` `measures. A utility shall not be required to advance any moneys` `to the Department but only to forward such funds as it has` `collected. The Department shall report to the Commission on an` `annual basis regarding the costs actually incurred by the` `Department in the implementation of the measures. Any changes` `to the costs of energy efficiency measures as a result of plan` `modifications shall be appropriately reflected in amounts` `recovered by the utility and turned over to the Department.` The portfolio of measures, administered by both the` `utilities and the Department, shall, in combination, be` `designed to achieve the annual savings targets described in` `subsections (b) and (c) of this Section, as modified by` `subsection (d) of this Section.` The utility and the Department shall agree upon a` `reasonable portfolio of measures and determine the measurable` `corresponding percentage of the savings goals associated with` `measures implemented by the utility or Department.` No utility shall be assessed a penalty under subsection (f)` `of this Section for failure to make a timely filing if that` `failure is the result of a lack of agreement with the` `Department with respect to the allocation of responsibilities` `or related costs or target assignments. In that case, the` `Department and the utility shall file their respective plans` `with the Commission and the Commission shall determine an` `appropriate division of measures and programs that meets the` `requirements of this Section.` If the Department is unable to meet incremental annual` `performance goals for the portion of the portfolio implemented` `by the Department, then the utility and the Department shall` `jointly submit a modified filing to the Commission explaining` `the performance shortfall and recommending an appropriate` `course going forward, including any program modifications that` `may be appropriate in light of the evaluations conducted under` `item (7) of subsection (f) of this Section. In this case, the` `utility obligation to collect the Department's costs and turn` `over those funds to the Department under this subsection (e)` `shall continue only if the Commission approves the` `modifications to the plan proposed by the Department.` (f) No later than November 15, 2007, each electric utility` `shall file an energy efficiency and demand-response plan with` `the Commission to meet the energy efficiency and` `demand-response standards for 2008 through 2010. No later than` `October 1, 2010, each electric utility shall file an energy` `efficiency and demand-response plan with the Commission to meet` `the energy efficiency and demand-response standards for 2011` `through 2013. Every 3 years thereafter, each electric utility` `shall file, no later than September 1, an energy efficiency and` `demand-response plan with the Commission. If a utility does not` `file such a plan by September 1 of an applicable year, it shall` `face a penalty of $100,000 per day until the plan is filed.` `Each utility's plan shall set forth the utility's proposals to` `meet the utility's portion of the energy efficiency standards` `identified in subsection (b) and the demand-response standards` `identified in subsection (c) of this Section as modified by` `subsections (d) and (e), taking into account the unique` `circumstances of the utility's service territory. The` `Commission shall seek public comment on the utility's plan and` `shall issue an order approving or disapproving each plan within` `5 months after its submission. If the Commission disapproves a` `plan, the Commission shall, within 30 days, describe in detail` `the reasons for the disapproval and describe a path by which` `the utility may file a revised draft of the plan to address the` `Commission's concerns satisfactorily. If the utility does not` `refile with the Commission within 60 days, the utility shall be` `subject to penalties at a rate of $100,000 per day until the` `plan is filed. This process shall continue, and penalties shall` `accrue, until the utility has successfully filed a portfolio of` `energy efficiency and demand-response measures. Penalties` `shall be deposited into the Energy Efficiency Trust Fund. In` `submitting proposed energy efficiency and demand-response` `plans and funding levels to meet the savings goals adopted by` `this Act the utility shall:` ``(1) Demonstrate that its proposed energy efficiency` `and demand-response measures will achieve the requirements` `that are identified in subsections (b) and (c) of this` `Section, as modified by subsections (d) and (e).` ``(2) Present specific proposals to implement new` `building and appliance standards that have been placed into` `effect.` ``(3) Present estimates of the total amount paid for` `electric service expressed on a per kilowatthour basis` `associated with the proposed portfolio of measures` `designed to meet the requirements that are identified in` `subsections (b) and (c) of this Section, as modified by` `subsections (d) and (e).` ``(4) Coordinate with the Department to present a` `portfolio of energy efficiency measures proportionate to` `the share of total annual utility revenues in Illinois from` `households at or below 150% of the poverty level. The` `energy efficiency programs shall be targeted to households` `with incomes at or below 80% of area median income.` ``(5) Demonstrate that its overall portfolio of energy` `efficiency and demand-response measures, not including` `programs covered by item (4) of this subsection (f), are` `cost-effective using the total resource cost test and` `represent a diverse cross-section of opportunities for` `customers of all rate classes to participate in the` `programs.` ``(6) Include a proposed cost-recovery tariff mechanism` `to fund the proposed energy efficiency and demand-response` `measures and to ensure the recovery of the prudently and` `reasonably incurred costs of Commission-approved programs.` ``(7) Provide for an annual independent evaluation of the` `performance of the cost-effectiveness of the utility's` `portfolio of measures and the Department's portfolio of` `measures, as well as a full review of the 3-year results of` `the broader net program impacts and, to the extent` `practical, for adjustment of the measures on a` `going-forward basis as a result of the evaluations. The` `resources dedicated to evaluation shall not exceed 3% of` `portfolio resources in any given year.` (g) No more than 3% of energy efficiency and` `demand-response program revenue may be allocated for` `demonstration of breakthrough equipment and devices.` (h) This Section does not apply to an electric utility that` `on December 31, 2005 provided electric service to fewer than` `100,000 customers in Illinois.` (i) If, after 2 years, an electric utility fails to meet` `the efficiency standard specified in subsection (b) of this` `Section, as modified by subsections (d) and (e), it shall make` `a contribution to the Low-Income Home Energy Assistance` `Program. The combined total liability for failure to meet the` `goal shall be $1,000,000, which shall be assessed as follows: a` `large electric utility shall pay $665,000, and a medium` `electric utility shall pay $335,000. If, after 3 years, an` `electric utility fails to meet the efficiency standard` `specified in subsection (b) of this Section, as modified by` `subsections (d) and (e), it shall make a contribution to the` `Low-Income Home Energy Assistance Program. The combined total` `liability for failure to meet the goal shall be $1,000,000,` `which shall be assessed as follows: a large electric utility` `shall pay $665,000, and a medium electric utility shall pay` `$335,000. In addition, the responsibility for implementing the` `energy efficiency measures of the utility making the payment` `shall be transferred to the Illinois Power Agency if, after 3` `years, or in any subsequent 3-year period, the utility fails to` `meet the efficiency standard specified in subsection (b) of` `this Section, as modified by subsections (d) and (e). The` `Agency shall implement a competitive procurement program to` `procure resources necessary to meet the standards specified in` `this Section as modified by subsections (d) and (e), with costs` `for those resources to be recovered in the same manner as` `products purchased through the procurement plan as provided in` `Section 16-111.5. The Director shall implement this` `requirement in connection with the procurement plan as provided` `in Section 16-111.5.` For purposes of this Section, (i) a "large electric` `utility" is an electric utility that, on December 31, 2005,` `served more than 2,000,000 electric customers in Illinois; (ii)` `a "medium electric utility" is an electric utility that, on` `December 31, 2005, served 2,000,000 or fewer but more than` `100,000 electric customers in Illinois; and (iii) Illinois` `electric utilities that are affiliated by virtue of a common` `parent company are considered a single electric utility.` (j) If, after 3 years, or any subsequent 3-year period, the` `Department fails to implement the Department's share of energy` `efficiency measures required by the standards in subsection` `(b), then the Illinois Power Agency may assume responsibility` `for and control of the Department's share of the required` `energy efficiency measures. The Agency shall implement a` `competitive procurement program to procure resources necessary` `to meet the standards specified in this Section, with the costs` `of these resources to be recovered in the same manner as` `provided for the Department in this Section.` (k) No electric utility shall be deemed to have failed to` `meet the energy efficiency standards to the extent any such` `failure is due to a failure of the Department or the Agency. (l)(1) The energy efficiency and demand-response plans of` `electric utilities serving more than 500,000 retail customers` `in the State that were approved by the Commission on or before` `the effective date of this amendatory Act of the 99th General` `Assembly for the period June 1, 2014 through May 31, 2017 shall` `continue to be in force and effect through December 31, 2017 so` `that the energy efficiency programs set forth in those plans` `continue to be offered during the period June 1, 2017 through` `December 31, 2017. Each such utility is authorized to increase,` `on a pro rata basis, the energy savings goals and budgets` `approved in its plan to reflect the additional 7 months of the` `plan's operation, provided that such increase shall also` `incorporate reductions to goals and budgets to reflect the` `proportion of the utility's load attributable to customers who` `are exempt from this Section under subsection (m) of this` `Section. ``(2) If an electric utility serving more than 500,000` `retail customers in the State filed with the Commission,` `under subsection (f) of this Section, its proposed energy` `efficiency and demand-response plan for the period June 1,` `2017 through May 31, 2020, and the Commission has not yet` `entered its final order approving such plan on or before` `the effective date of this amendatory Act of the 99th` `General Assembly, then the utility shall file a notice of` `withdrawal with the Commission, following such effective` `date, to withdraw the proposed energy efficiency and` `demand-response plan. Upon receipt of such notice, the` `Commission shall dismiss with prejudice any docket that had` `been initiated to investigate such plan, and the plan and` `the record related thereto shall not be the subject of any` `further hearing, investigation, or proceeding of any kind. ``(3) For those electric utilities that serve more than` `500,000 retail customers in the State, this amendatory Act` `of the 99th General Assembly preempts and supersedes any` `orders entered by the Commission that approved such` `utilities' energy efficiency and demand response plans for` `the period commencing June 1, 2017 and ending May 31, 2020.` `Any such orders shall be void, and the provisions of` `paragraph (1) of this subsection (l) shall apply. `(m) Notwithstanding anything to the contrary, after May 31,` `2017, this Section does not apply to any retail customers of an` `electric utility that serves more than 3,000,000 retail` `customers in the State and whose total highest 30 minute demand` `was more than 10,000 kilowatts, or any retail customers of an` `electric utility that serves less than 3,000,000 retail` `customers but more than 500,000 retail customers in the State` `and whose total highest 15 minute demand was more than 10,000` `kilowatts. For purposes of this subsection (m), "retail` `customer" has the meaning set forth in Section 16-102 of this` `Act. The criteria for determining whether this subsection (m)` `is applicable to a retail customer shall be based on the 12` `consecutive billing periods prior to the start of the first` `year of each such multi-year plan. `(Source: P.A. 97-616, eff. 10-26-11; 97-841, eff. 7-20-12;` `98-90, eff. 7-15-13.) (220 ILCS 5/8-103B new)` Sec. 8-103B.``Energy efficiency and demand-response` `measures.` (a) It is the policy of the State that electric utilities` `are required to use cost-effective energy efficiency and` `demand-response measures to reduce delivery load. Requiring` `investment in cost-effective energy efficiency and` `demand-response measures will reduce direct and indirect costs` `to consumers by decreasing environmental impacts and by` `avoiding or delaying the need for new generation, transmission,` `and distribution infrastructure. It serves the public interest` `to allow electric utilities to recover costs for reasonably and` `prudently incurred expenditures for energy efficiency and` `demand-response measures. As used in this Section,` `"cost-effective" means that the measures satisfy the total` `resource cost test. The low-income measures described in` `subsection (c) of this Section shall not be required to meet` `the total resource cost test. For purposes of this Section, the` `terms "energy-efficiency", "demand-response", "electric` `utility", and "total resource cost test" have the meanings set` `forth in the Illinois Power Agency Act. (a-5) This Section applies to electric utilities serving` `more than 500,000 retail customers in the State for those` `multi-year plans commencing after December 31, 2017. (b) For purposes of this Section, electric utilities` `subject to this Section that serve more than 3,000,000 retail` `customers in the State shall be deemed to have achieved a` `cumulative persisting annual savings of 6.6% from energy` `efficiency measures and programs implemented during the period` `beginning January 1, 2012 and ending December 31, 2017, which` `percent is based on the deemed average weather normalized sales` `of electric power and energy during calendar years 2014, 2015,` `and 2016 of 88,000,000 MWhs. For the purposes of this` `subsection (b) and subsection (b-5), the 88,000,000 MWhs of` `deemed electric power and energy sales shall be reduced by the` `number of MWhs equal to the sum of the annual consumption of` `customers that are exempt from subsections (a) through (j) of` `this Section under subsection (l) of this Section, as averaged` `across the calendar years 2014, 2015, and 2016. After 2017, the` `deemed value of cumulative persisting annual savings from` `energy efficiency measures and programs implemented during the` `period beginning January 1, 2012 and ending December 31, 2017,` `shall be reduced each year, as follows, and the applicable` `value shall be applied to and count toward the utility's` `achievement of the cumulative persisting annual savings goals` `set forth in subsection (b-5):` ``(1) 5.8% deemed cumulative persisting annual savings` `for the year ending December 31, 2018;` ``(2) 5.2% deemed cumulative persisting annual savings` `for the year ending December 31, 2019;` ``(3) 4.5% deemed cumulative persisting annual savings` `for the year ending December 31, 2020;` ``(4) 4.0% deemed cumulative persisting annual savings` `for the year ending December 31, 2021;` ``(5) 3.5% deemed cumulative persisting annual savings` `for the year ending December 31, 2022;` ``(6) 3.1% deemed cumulative persisting annual savings` `for the year ending December 31, 2023;` ``(7) 2.8% deemed cumulative persisting annual savings` `for the year ending December 31, 2024;` ``(8) 2.5% deemed cumulative persisting annual savings` `for the year ending December 31, 2025;` ``(9) 2.3% deemed cumulative persisting annual savings` `for the year ending December 31, 2026;` ``(10) 2.1% deemed cumulative persisting annual savings` `for the year ending December 31, 2027;` ``(11) 1.8% deemed cumulative persisting annual savings` `for the year ending December 31, 2028;` ``(12) 1.7% deemed cumulative persisting annual savings` `for the year ending December 31, 2029; and` ``(13) 1.5% deemed cumulative persisting annual savings` `for the year ending December 31, 2030.` For purposes of this Section, "cumulative persisting` `annual savings" means the total electric energy savings in a` `given year from measures installed in that year or in previous` `years, but no earlier than January 1, 2012, that are still` `operational and providing savings in that year because the` `measures have not yet reached the end of their useful lives.` (b-5) Beginning in 2018, electric utilities subject to this` `Section that serve more than 3,000,000 retail customers in the` `State shall achieve the following cumulative persisting annual` `savings goals, as modified by subsection (f) of this Section` `and as compared to the deemed baseline of 88,000,000 MWhs of` `electric power and energy sales set forth in subsection (b), as` `reduced by the number of MWhs equal to the sum of the annual` `consumption of customers that are exempt from subsections (a)` `through (j) of this Section under subsection (l) of this` `Section as averaged across the calendar years 2014, 2015, and` `2016, through the implementation of energy efficiency measures` `during the applicable year and in prior years, but no earlier` `than January 1, 2012:` ``(1) 7.8% cumulative persisting annual savings for the` `year ending December 31, 2018;` ``(2) 9.1% cumulative persisting annual savings for the` `year ending December 31, 2019;` ``(3) 10.4% cumulative persisting annual savings for the` `year ending December 31, 2020;` ``(4) 11.8% cumulative persisting annual savings for the` `year ending December 31, 2021;` ``(5) 13.1% cumulative persisting annual savings for the` `year ending December 31, 2022;` ``(6) 14.4% cumulative persisting annual savings for the` `year ending December 31, 2023;` ``(7) 15.7% cumulative persisting annual savings for the` `year ending December 31, 2024;` ``(8) 17% cumulative persisting annual savings for the` `year ending December 31, 2025;` ``(9) 17.9% cumulative persisting annual savings for the` `year ending December 31, 2026;` ``(10) 18.8% cumulative persisting annual savings for` `the year ending December 31, 2027;` ``(11) 19.7% cumulative persisting annual savings for` `the year ending December 31, 2028;` ``(12) 20.6% cumulative persisting annual savings for` `the year ending December 31, 2029; and` ``(13) 21.5% cumulative persisting annual savings for` `the year ending December 31, 2030.` (b-10) For purposes of this Section, electric utilities` `subject to this Section that serve less than 3,000,000 retail` `customers but more than 500,000 retail customers in the State` `shall be deemed to have achieved a cumulative persisting annual` `savings of 6.6% from energy efficiency measures and programs` `implemented during the period beginning January 1, 2012 and` `ending December 31, 2017, which is based on the deemed average` `weather normalized sales of electric power and energy during` `calendar years 2014, 2015, and 2016 of 36,900,000 MWhs. For the` `purposes of this subsection (b-10) and subsection (b-15), the` `36,900,000 MWhs of deemed electric power and energy sales shall` `be reduced by the number of MWhs equal to the sum of the annual` `consumption of customers that are exempt from subsections (a)` `through (j) of this Section under subsection (l) of this` `Section, as averaged across the calendar years 2014, 2015, and` `2016. After 2017, the deemed value of cumulative persisting` `annual savings from energy efficiency measures and programs` `implemented during the period beginning January 1, 2012 and` `ending December 31, 2017, shall be reduced each year, as` `follows, and the applicable value shall be applied to and count` `toward the utility's achievement of the cumulative persisting` `annual savings goals set forth in subsection (b-15):` ``(1) 5.8% deemed cumulative persisting annual savings` `for the year ending December 31, 2018;` ``(2) 5.2% deemed cumulative persisting annual savings` `for the year ending December 31, 2019;` ``(3) 4.5% deemed cumulative persisting annual savings` `for the year ending December 31, 2020;` ``(4) 4.0% deemed cumulative persisting annual savings` `for the year ending December 31, 2021;` ``(5) 3.5% deemed cumulative persisting annual savings` `for the year ending December 31, 2022;` ``(6) 3.1% deemed cumulative persisting annual savings` `for the year ending December 31, 2023;` ``(7) 2.8% deemed cumulative persisting annual savings` `for the year ending December 31, 2024;` ``(8) 2.5% deemed cumulative persisting annual savings` `for the year ending December 31, 2025;` ``(9) 2.3% deemed cumulative persisting annual savings` `for the year ending December 31, 2026;` ``(10) 2.1% deemed cumulative persisting annual savings` `for the year ending December 31, 2027;` ``(11) 1.8% deemed cumulative persisting annual savings` `for the year ending December 31, 2028;` ``(12) 1.7% deemed cumulative persisting annual savings` `for the year ending December 31, 2029; and` ``(13) 1.5% deemed cumulative persisting annual savings` `for the year ending December 31, 2030.` (b-15) Beginning in 2018, electric utilities subject to` `this Section that serve less than 3,000,000 retail customers` `but more than 500,000 retail customers in the State shall` `achieve the following cumulative persisting annual savings` `goals, as modified by subsection (b-20) and subsection (f) of` `this Section and as compared to the deemed baseline as reduced` `by the number of MWhs equal to the sum of the annual` `consumption of customers that are exempt from subsections (a)` `through (j) of this Section under subsection (l) of this` `Section as averaged across the calendar years 2014, 2015, and` `2016, through the implementation of energy efficiency measures` `during the applicable year and in prior years, but no earlier` `than January 1, 2012:` ``(1) 7.4% cumulative persisting annual savings for the` `year ending December 31, 2018;` ``(2) 8.2% cumulative persisting annual savings for the` `year ending December 31, 2019;` ``(3) 9.0% cumulative persisting annual savings for the` `year ending December 31, 2020;` ``(4) 9.8% cumulative persisting annual savings for the` `year ending December 31, 2021;` ``(5) 10.6% cumulative persisting annual savings for the` `year ending December 31, 2022;` ``(6) 11.4% cumulative persisting annual savings for the` `year ending December 31, 2023;` ``(7) 12.2% cumulative persisting annual savings for the` `year ending December 31, 2024;` ``(8) 13% cumulative persisting annual savings for the` `year ending December 31, 2025;` ``(9) 13.6% cumulative persisting annual savings for the` `year ending December 31, 2026;` ``(10) 14.2% cumulative persisting annual savings for` `the year ending December 31, 2027;` ``(11) 14.8% cumulative persisting annual savings for` `the year ending December 31, 2028;` ``(12) 15.4% cumulative persisting annual savings for` `the year ending December 31, 2029; and` ``(13) 16% cumulative persisting annual savings for the` `year ending December 31, 2030. The difference between the cumulative persisting annual` `savings goal for the applicable calendar year and the` `cumulative persisting annual savings goal for the immediately` `preceding calendar year is 0.8% for the period of January 1,` `2018 through December 31, 2025 and 0.6% for the period of` `January 1, 2026 through December 31, 2030. (b-20) Each electric utility subject to this Section may` `include cost-effective voltage optimization measures in its` `plans submitted under subsections (f) and (g) of this Section,` `and the costs incurred by a utility to implement the measures` `under a Commission-approved plan shall be recovered under the` `provisions of Article IX or Section 16-108.5 of this Act. For` `purposes of this Section, the measure life of voltage` `optimization measures shall be 15 years. The measure life` `period is independent of the depreciation rate of the voltage` `optimization assets deployed.` Within 270 days after the effective date of this amendatory` `Act of the 99th General Assembly, an electric utility that` `serves less than 3,000,000 retail customers but more than` `500,000 retail customers in the State shall file a plan with` `the Commission that identifies the cost-effective voltage` `optimization investment the electric utility plans to` `undertake through December 31, 2024. The Commission, after` `notice and hearing, shall approve or approve with modification` `the plan within 120 days after the plan's filing and, in the` `order approving or approving with modification the plan, the` `Commission shall adjust the applicable cumulative persisting` `annual savings goals set forth in subsection (b-15) to reflect` `any amount of cost-effective energy savings approved by the` `Commission that is greater than or less than the following` `cumulative persisting annual savings values attributable to` `voltage optimization for the applicable year:` ``(1) 0.0% of cumulative persisting annual savings for` `the year ending December 31, 2018;` ``(2) 0.17% of cumulative persisting annual savings for` `the year ending December 31, 2019;` ``(3) 0.17% of cumulative persisting annual savings for` `the year ending December 31, 2020;` ``(4) 0.33% of cumulative persisting annual savings for` `the year ending December 31, 2021;` ``(5) 0.5% of cumulative persisting annual savings for` `the year ending December 31, 2022;` ``(6) 0.67% of cumulative persisting annual savings for` `the year ending December 31, 2023;` ``(7) 0.83% of cumulative persisting annual savings for` `the year ending December 31, 2024; and` ``(8) 1.0% of cumulative persisting annual savings for` `the year ending December 31, 2025. (b-25) In the event an electric utility jointly offers an` `energy efficiency measure or program with a gas utility under` `plans approved under this Section and Section 8-104 of this` `Act, the electric utility may continue offering the program,` `including the gas energy efficiency measures, in the event the` `gas utility discontinues funding the program. In that event,` `the energy savings value associated with such other fuels shall` `be converted to electric energy savings on an equivalent Btu` `basis for the premises. However, the electric utility shall` `prioritize programs for low-income residential customers to` `the extent practicable. An electric utility may recover the` `costs of offering the gas energy efficiency measures under this` `subsection (b-25).` For those energy efficiency measures or programs that save` `both electricity and other fuels but are not jointly offered` `with a gas utility under plans approved under this Section and` `Section 8-104 or not offered with an affiliated gas utility` `under paragraph (6) of subsection (f) of Section 8-104 of this` `Act, the electric utility may count savings of fuels other than` `electricity toward the achievement of its annual savings goal,` `and the energy savings value associated with such other fuels` `shall be converted to electric energy savings on an equivalent` `Btu basis at the premises. In no event shall more than 10% of each year's applicable` `annual incremental goal as defined in paragraph (7) of` `subsection (g) of this Section be met through savings of fuels` `other than electricity. (c) Electric utilities shall be responsible for overseeing` `the design, development, and filing of energy efficiency plans` `with the Commission and may, as part of that implementation,` `outsource various aspects of program development and` `implementation. A minimum of 10%, for electric utilities that` `serve more than 3,000,000 retail customers in the State, and a` `minimum of 7%, for electric utilities that serve less than` `3,000,000 retail customers but more than 500,000 retail` `customers in the State, of the utility's entire portfolio` `funding level for a given year shall be used to procure` `cost-effective energy efficiency measures from units of local` `government, municipal corporations, school districts, public` `housing, and community college districts, provided that a` `minimum percentage of available funds shall be used to procure` `energy efficiency from public housing, which percentage shall` `be equal to public housing's share of public building energy` `consumption.` The utilities shall also implement energy efficiency` `measures targeted at low-income households, which, for` `purposes of this Section, shall be defined as households at or` `below 80% of area median income, and expenditures to implement` `the measures shall be no less than $25,000,000 per year for` `electric utilities that serve more than 3,000,000 retail` `customers in the State and no less than $8,350,000 per year for` `electric utilities that serve less than 3,000,000 retail` `customers but more than 500,000 retail customers in the State.` Each electric utility shall assess opportunities to` `implement cost-effective energy efficiency measures and` `programs through a public housing authority or authorities` `located in its service territory. If such opportunities are` `identified, the utility shall propose such measures and` `programs to address the opportunities. Expenditures to address` `such opportunities shall be credited toward the minimum` `procurement and expenditure requirements set forth in this` `subsection (c).` Implementation of energy efficiency measures and programs` `targeted at low-income households should be contracted, when it` `is practicable, to independent third parties that have` `demonstrated capabilities to serve such households, with a` `preference for not-for-profit entities and government agencies` `that have existing relationships with or experience serving` `low-income communities in the State.` Each electric utility shall develop and implement` `reporting procedures that address and assist in determining the` `amount of energy savings that can be applied to the low-income` `procurement and expenditure requirements set forth in this` `subsection (c).` The electric utilities shall also convene a low-income` `energy efficiency advisory committee to assist in the design` `and evaluation of the low-income energy efficiency programs.` `The committee shall be comprised of the electric utilities` `subject to the requirements of this Section, the gas utilities` `subject to the requirements of Section 8-104 of this Act, the` `utilities' low-income energy efficiency implementation` `contractors, and representatives of community-based` `organizations. (d) Notwithstanding any other provision of law to the` `contrary, a utility providing approved energy efficiency` `measures and, if applicable, demand-response measures in the` `State shall be permitted to recover all reasonable and` `prudently incurred costs of those measures from all retail` `customers, except as provided in subsection (l) of this` `Section, as follows, provided that nothing in this subsection` `(d) permits the double recovery of such costs from customers: ``(1) The utility may recover its costs through an` `automatic adjustment clause tariff filed with and approved` `by the Commission. The tariff shall be established outside` `the context of a general rate case. Each year the` `Commission shall initiate a review to reconcile any amounts` `collected with the actual costs and to determine the` `required adjustment to the annual tariff factor to match` `annual expenditures. To enable the financing of the` `incremental capital expenditures, including regulatory` `assets, for electric utilities that serve less than` `3,000,000 retail customers but more than 500,000 retail` `customers in the State, the utility's actual year-end` `capital structure that includes a common equity ratio,` `excluding goodwill, of up to and including 50% of the total` `capital structure shall be deemed reasonable and used to` `set rates.` ``(2) A utility may recover its costs through an energy` `efficiency formula rate approved by the Commission under a` `filing under subsections (f) and (g) of this Section, which` `shall specify the cost components that form the basis of` `the rate charged to customers with sufficient specificity` `to operate in a standardized manner and be updated annually` `with transparent information that reflects the utility's` `actual costs to be recovered during the applicable rate` `year, which is the period beginning with the first billing` `day of January and extending through the last billing day` `of the following December. The energy efficiency formula` `rate shall be implemented through a tariff filed with the` `Commission under subsections (f) and (g) of this Section` `that is consistent with the provisions of this paragraph` `(2) and that shall be applicable to all delivery services` `customers. The Commission shall conduct an investigation` `of the tariff in a manner consistent with the provisions of` `this paragraph (2), subsections (f) and (g) of this` `Section, and the provisions of Article IX of this Act to` `the extent they do not conflict with this paragraph (2).` `The energy efficiency formula rate approved by the` `Commission shall remain in effect at the discretion of the` `utility and shall do the following:` `(A) Provide for the recovery of the utility's` `actual costs incurred under this Section that are` `prudently incurred and reasonable in amount consistent` `with Commission practice and law. The sole fact that a` `cost differs from that incurred in a prior calendar` `year or that an investment is different from that made` `in a prior calendar year shall not imply the imprudence` `or unreasonableness of that cost or investment.` `(B) Reflect the utility's actual year-end capital` `structure for the applicable calendar year, excluding` `goodwill, subject to a determination of prudence and` `reasonableness consistent with Commission practice and` `law. To enable the financing of the incremental capital` `expenditures, including regulatory assets, for` `electric utilities that serve less than 3,000,000` `retail customers but more than 500,000 retail` `customers in the State, a participating electric` `utility's actual year-end capital structure that` `includes a common equity ratio, excluding goodwill, of` `up to and including 50% of the total capital structure` `shall be deemed reasonable and used to set rates.` `(C) Include a cost of equity, which shall be` `calculated as the sum of the following:` (i) the average for the applicable calendar` `year of the monthly average yields of 30-year U.S.` `Treasury bonds published by the Board of Governors` `of the Federal Reserve System in its weekly H.15` `Statistical Release or successor publication; and` (ii) 580 basis points.` `At such time as the Board of Governors of the` `Federal Reserve System ceases to include the monthly` `average yields of 30-year U.S. Treasury bonds in its` `weekly H.15 Statistical Release or successor` `publication, the monthly average yields of the U.S.` `Treasury bonds then having the longest duration` `published by the Board of Governors in its weekly H.15` `Statistical Release or successor publication shall` `instead be used for purposes of this paragraph (2).` `(D) Permit and set forth protocols, subject to a` `determination of prudence and reasonableness` `consistent with Commission practice and law, for the` `following:` (i) recovery of incentive compensation expense` `that is based on the achievement of operational` `metrics, including metrics related to budget` `controls, outage duration and frequency, safety,` `customer service, efficiency and productivity, and` `environmental compliance; however, this protocol` `shall not apply if such expense related to costs` `incurred under this Section is recovered under` `Article IX or Section 16-108.5 of this Act;` `incentive compensation expense that is based on` `net income or an affiliate's earnings per share` `shall not be recoverable under the energy` `efficiency formula rate;` (ii) recovery of pension and other` `post-employment benefits expense, provided that` `such costs are supported by an actuarial study;` `however, this protocol shall not apply if such` `expense related to costs incurred under this` `Section is recovered under Article IX or Section` `16-108.5 of this Act;` (iii) recovery of existing regulatory assets` `over the periods previously authorized by the` `Commission;` (iv) as described in subsection (e),` `amortization of costs incurred under this Section;` `and` (v) projected, weather normalized billing` `determinants for the applicable rate year.` `(E) Provide for an annual reconciliation, as` `described in paragraph (3) of this subsection (d), less` `any deferred taxes related to the reconciliation, with` `interest at an annual rate of return equal to the` `utility's weighted average cost of capital, including` `a revenue conversion factor calculated to recover or` `refund all additional income taxes that may be payable` `or receivable as a result of that return, of the energy` `efficiency revenue requirement reflected in rates for` `each calendar year, beginning with the calendar year in` `which the utility files its energy efficiency formula` `rate tariff under this paragraph (2), with what the` `revenue requirement would have been had the actual cost` `information for the applicable calendar year been` `available at the filing date.` ``The utility shall file, together with its tariff, the` `projected costs to be incurred by the utility during the` `rate year under the utility's multi-year plan approved` `under subsections (f) and (g) of this Section, including,` `but not limited to, the projected capital investment costs` `and projected regulatory asset balances with` `correspondingly updated depreciation and amortization` `reserves and expense, that shall populate the energy` `efficiency formula rate and set the initial rates under the` `formula.` ``The Commission shall review the proposed tariff in` `conjunction with its review of a proposed multi-year plan,` `as specified in paragraph (5) of subsection (g) of this` `Section. The review shall be based on the same evidentiary` `standards, including, but not limited to, those concerning` `the prudence and reasonableness of the costs incurred by` `the utility, the Commission applies in a hearing to review` `a filing for a general increase in rates under Article IX` `of this Act. The initial rates shall take effect beginning` `with the January monthly billing period following the` `Commission's approval.` ``The tariff's rate design and cost allocation across` `customer classes shall be consistent with the utility's` `automatic adjustment clause tariff in effect on the` `effective date of this amendatory Act of the 99th General` `Assembly; however, the Commission may revise the tariff's` `rate design and cost allocation in subsequent proceedings` `under paragraph (3) of this subsection (d).` ``If the energy efficiency formula rate is terminated,` `the then current rates shall remain in effect until such` `time as the energy efficiency costs are incorporated into` `new rates that are set under this subsection (d) or Article` `IX of this Act, subject to retroactive rate adjustment,` `with interest, to reconcile rates charged with actual` `costs.` ``(3) The provisions of this paragraph (3) shall only` `apply to an electric utility that has elected to file an` `energy efficiency formula rate under paragraph (2) of this` `subsection (d). Subsequent to the Commission's issuance of` `an order approving the utility's energy efficiency formula` `rate structure and protocols, and initial rates under` `paragraph (2) of this subsection (d), the utility shall` `file, on or before June 1 of each year, with the Chief` `Clerk of the Commission its updated cost inputs to the` `energy efficiency formula rate for the applicable rate year` `and the corresponding new charges, as well as the` `information described in paragraph (9) of subsection (g) of` `this Section. Each such filing shall conform to the` `following requirements and include the following` `information:` `(A) The inputs to the energy efficiency formula` `rate for the applicable rate year shall be based on the` `projected costs to be incurred by the utility during` `the rate year under the utility's multi-year plan` `approved under subsections (f) and (g) of this Section,` `including, but not limited to, projected capital` `investment costs and projected regulatory asset` `balances with correspondingly updated depreciation and` `amortization reserves and expense. The filing shall` `also include a reconciliation of the energy efficiency` `revenue requirement that was in effect for the prior` `rate year (as set by the cost inputs for the prior rate` `year) with the actual revenue requirement for the prior` `rate year (determined using a year-end rate base) that` `uses amounts reflected in the applicable FERC Form 1` `that reports the actual costs for the prior rate year.` `Any over-collection or under-collection indicated by` `such reconciliation shall be reflected as a credit` `against, or recovered as an additional charge to,` `respectively, with interest calculated at a rate equal` `to the utility's weighted average cost of capital` `approved by the Commission for the prior rate year, the` `charges for the applicable rate year. Such` `over-collection or under-collection shall be adjusted` `to remove any deferred taxes related to the` `reconciliation, for purposes of calculating interest` `at an annual rate of return equal to the utility's` `weighted average cost of capital approved by the` `Commission for the prior rate year, including a revenue` `conversion factor calculated to recover or refund all` `additional income taxes that may be payable or` `receivable as a result of that return. Each` `reconciliation shall be certified by the participating` `utility in the same manner that FERC Form 1 is` `certified. The filing shall also include the charge or` `credit, if any, resulting from the calculation` `required by subparagraph (E) of paragraph (2) of this` `subsection (d).` `Notwithstanding any other provision of law to the` `contrary, the intent of the reconciliation is to` `ultimately reconcile both the revenue requirement` `reflected in rates for each calendar year, beginning` `with the calendar year in which the utility files its` `energy efficiency formula rate tariff under paragraph` `(2) of this subsection (d), with what the revenue` `requirement determined using a year-end rate base for` `the applicable calendar year would have been had the` `actual cost information for the applicable calendar` `year been available at the filing date.` `For purposes of this Section, "FERC Form 1" means` `the Annual Report of Major Electric Utilities,` `Licensees and Others that electric utilities are` `required to file with the Federal Energy Regulatory` `Commission under the Federal Power Act, Sections 3,` `4(a), 304 and 209, modified as necessary to be` `consistent with 83 Ill. Admin. Code Part 415 as of May` `1, 2011. Nothing in this Section is intended to allow` `costs that are not otherwise recoverable to be` `recoverable by virtue of inclusion in FERC Form 1.` `(B) The new charges shall take effect beginning on` `the first billing day of the following January billing` `period and remain in effect through the last billing` `day of the next December billing period regardless of` `whether the Commission enters upon a hearing under this` `paragraph (3).` `(C) The filing shall include relevant and` `necessary data and documentation for the applicable` `rate year. Normalization adjustments shall not be` `required.` ``Within 45 days after the utility files its annual` `update of cost inputs to the energy efficiency formula` `rate, the Commission shall with reasonable notice,` `initiate a proceeding concerning whether the projected` `costs to be incurred by the utility and recovered during` `the applicable rate year, and that are reflected in the` `inputs to the energy efficiency formula rate, are` `consistent with the utility's approved multi-year plan` `under subsections (f) and (g) of this Section and whether` `the costs incurred by the utility during the prior rate` `year were prudent and reasonable. The Commission shall also` `have the authority to investigate the information and data` `described in paragraph (9) of subsection (g) of this` `Section, including the proposed adjustment to the` `utility's return on equity component of its weighted` `average cost of capital. During the course of the` `proceeding, each objection shall be stated with` `particularity and evidence provided in support thereof,` `after which the utility shall have the opportunity to rebut` `the evidence. Discovery shall be allowed consistent with` `the Commission's Rules of Practice, which Rules of Practice` `shall be enforced by the Commission or the assigned hearing` `examiner. The Commission shall apply the same evidentiary` `standards, including, but not limited to, those concerning` `the prudence and reasonableness of the costs incurred by` `the utility, during the proceeding as it would apply in a` `proceeding to review a filing for a general increase in` `rates under Article IX of this Act. The Commission shall` `not, however, have the authority in a proceeding under this` `paragraph (3) to consider or order any changes to the` `structure or protocols of the energy efficiency formula` `rate approved under paragraph (2) of this subsection (d).` `In a proceeding under this paragraph (3), the Commission` `shall enter its order no later than the earlier of 195 days` `after the utility's filing of its annual update of cost` `inputs to the energy efficiency formula rate or December` `15. The utility's proposed return on equity calculation, as` `described in paragraphs (7) through (9) of subsection (g)` `of this Section, shall be deemed the final, approved` `calculation on December 15 of the year in which it is filed` `unless the Commission enters an order on or before December` `15, after notice and hearing, that modifies such` `calculation consistent with this Section. The Commission's` `determinations of the prudence and reasonableness of the` `costs incurred, and determination of such return on equity` `calculation, for the applicable calendar year shall be` `final upon entry of the Commission's order and shall not be` `subject to reopening, reexamination, or collateral attack` `in any other Commission proceeding, case, docket, order,` `rule, or regulation; however, nothing in this paragraph (3)` `shall prohibit a party from petitioning the Commission to` `rehear or appeal to the courts the order under the` `provisions of this Act.` (e) Beginning on the effective date of this amendatory Act` `of the 99th General Assembly, a utility subject to the` `requirements of this Section may elect to defer, as a` `regulatory asset, up to the full amount of its expenditures` `incurred under this Section for each annual period, including,` `but not limited to, any expenditures incurred above the funding` `level set by subsection (f) of this Section for a given year.` `The total expenditures deferred as a regulatory asset in a` `given year shall be amortized and recovered over a period that` `is equal to the weighted average of the energy efficiency` `measure lives implemented for that year that are reflected in` `the regulatory asset. The unamortized balance shall be` `recognized as of December 31 for a given year. The utility` `shall also earn a return on the total of the unamortized` `balances of all of the energy efficiency regulatory assets,` `less any deferred taxes related to those unamortized balances,` `at an annual rate equal to the utility's weighted average cost` `of capital that includes, based on a year-end capital` `structure, the utility's actual cost of debt for the applicable` `calendar year and a cost of equity, which shall be calculated` `as the sum of the (i) the average for the applicable calendar` `year of the monthly average yields of 30-year U.S. Treasury` `bonds published by the Board of Governors of the Federal` `Reserve System in its weekly H.15 Statistical Release or` `successor publication; and (ii) 580 basis points, including a` `revenue conversion factor calculated to recover or refund all` `additional income taxes that may be payable or receivable as a` `result of that return. Capital investment costs shall be` `depreciated and recovered over their useful lives consistent` `with generally accepted accounting principles. The weighted` `average cost of capital shall be applied to the capital` `investment cost balance, less any accumulated depreciation and` `accumulated deferred income taxes, as of December 31 for a` `given year.` When an electric utility creates a regulatory asset under` `the provisions of this Section, the costs are recovered over a` `period during which customers also receive a benefit which is` `in the public interest. Accordingly, it is the intent of the` `General Assembly that an electric utility that elects to create` `a regulatory asset under the provisions of this Section shall` `recover all of the associated costs as set forth in this` `Section. After the Commission has approved the prudence and` `reasonableness of the costs that comprise the regulatory asset,` `the electric utility shall be permitted to recover all such` `costs, and the value and recoverability through rates of the` `associated regulatory asset shall not be limited, altered,` `impaired, or reduced.` (f) Beginning in 2017, each electric utility shall file an` `energy efficiency plan with the Commission to meet the energy` `efficiency standards for the next applicable multi-year period` `beginning January 1 of the year following the filing, according` `to the schedule set forth in paragraphs (1) through (3) of this` `subsection (f). If a utility does not file such a plan on or` `before the applicable filing deadline for the plan, it shall` `face a penalty of $100,000 per day until the plan is filed.` ``(1) No later than 30 days after the effective date of` `this amendatory Act of the 99th General Assembly or May 1,` `2017, whichever is later, each electric utility shall file` `a 4-year energy efficiency plan commencing on January 1,` `2018 that is designed to achieve the cumulative persisting` `annual savings goals specified in paragraphs (1) through` `(4) of subsection (b-5) of this Section or in paragraphs` `(1) through (4) of subsection (b-15) of this Section, as` `applicable, through implementation of energy efficiency` `measures; however, the goals may be reduced if the` `utility's expenditures are limited pursuant to subsection` `(m) of this Section or, for a utility that serves less than` `3,000,000 retail customers, if each of the following` `conditions are met: (A) the plan's analysis and forecasts` `of the utility's ability to acquire energy savings` `demonstrate that achievement of such goals is not cost` `effective; and (B) the amount of energy savings achieved by` `the utility as determined by the independent evaluator for` `the most recent year for which savings have been evaluated` `preceding the plan filing was less than the average annual` `amount of savings required to achieve the goals for the` `applicable 4-year plan period. Except as provided in` `subsection (m) of this Section, annual increases in` `cumulative persisting annual savings goals during the` `applicable 4-year plan period shall not be reduced to` `amounts that are less than the maximum amount of cumulative` `persisting annual savings that is forecast to be` `cost-effectively achievable during the 4-year plan period.` `The Commission shall review any proposed goal reduction as` `part of its review and approval of the utility's proposed` `plan.` ``(2) No later than March 1, 2021, each electric utility` `shall file a 4-year energy efficiency plan commencing on` `January 1, 2022 that is designed to achieve the cumulative` `persisting annual savings goals specified in paragraphs` `(5) through (8) of subsection (b-5) of this Section or in` `paragraphs (5) through (8) of subsection (b-15) of this` `Section, as applicable, through implementation of energy` `efficiency measures; however, the goals may be reduced if` `the utility's expenditures are limited pursuant to` `subsection (m) of this Section or, each of the following` `conditions are met: (A) the plan's analysis and forecasts` `of the utility's ability to acquire energy savings` `demonstrate that achievement of such goals is not cost` `effective; and (B) the amount of energy savings achieved by` `the utility as determined by the independent evaluator for` `the most recent year for which savings have been evaluated` `preceding the plan filing was less than the average annual` `amount of savings required to achieve the goals for the` `applicable 4-year plan period. Except as provided in` `subsection (m) of this Section, annual increases in` `cumulative persisting annual savings goals during the` `applicable 4-year plan period shall not be reduced to` `amounts that are less than the maximum amount of cumulative` `persisting annual savings that is forecast to be` `cost-effectively achievable during the 4-year plan period.` `The Commission shall review any proposed goal reduction as` `part of its review and approval of the utility's proposed` `plan.` ``(3) No later than March 1, 2025, each electric utility` `shall file a 5-year energy efficiency plan commencing on` `January 1, 2026 that is designed to achieve the cumulative` `persisting annual savings goals specified in paragraphs` `(9) through (13) of subsection (b-5) of this Section or in` `paragraphs (9) through (13) of subsection (b-15) of this` `Section, as applicable, through implementation of energy` `efficiency measures; however, the goals may be reduced if` `the utility's expenditures are limited pursuant to` `subsection (m) of this Section or, each of the following` `conditions are met: (A) the plan's analysis and forecasts` `of the utility's ability to acquire energy savings` `demonstrate that achievement of such goals is not cost` `effective; and (B) the amount of energy savings achieved by` `the utility as determined by the independent evaluator for` `the most recent year for which savings have been evaluated` `preceding the plan filing was less than the average annual` `amount of savings required to achieve the goals for the` `applicable 5-year plan period. Except as provided in` `subsection (m) of this Section, annual increases in` `cumulative persisting annual savings goals during the` `applicable 5-year plan period shall not be reduced to` `amounts that are less than the maximum amount of cumulative` `persisting annual savings that is forecast to be` `cost-effectively achievable during the 5-year plan period.` `The Commission shall review any proposed goal reduction as` `part of its review and approval of the utility's proposed` `plan. Each utility's plan shall set forth the utility's proposals` `to meet the energy efficiency standards identified in` `subsection (b-5) or (b-15), as applicable and as such standards` `may have been modified under this subsection (f), taking into` `account the unique circumstances of the utility's service` `territory. For those plans commencing on January 1, 2018, the` `Commission shall seek public comment on the utility's plan and` `shall issue an order approving or disapproving each plan no` `later than August 31, 2017, or 105 days after the effective` `date of this amendatory Act of the 99th General Assembly,` `whichever is later. For those plans commencing after December` `31, 2021, the Commission shall seek public comment on the` `utility's plan and shall issue an order approving or` `disapproving each plan within 6 months after its submission. If` `the Commission disapproves a plan, the Commission shall, within` `30 days, describe in detail the reasons for the disapproval and` `describe a path by which the utility may file a revised draft` `of the plan to address the Commission's concerns` `satisfactorily. If the utility does not refile with the` `Commission within 60 days, the utility shall be subject to` `penalties at a rate of $100,000 per day until the plan is` `filed. This process shall continue, and penalties shall accrue,` `until the utility has successfully filed a portfolio of energy` `efficiency and demand-response measures. Penalties shall be` `deposited into the Energy Efficiency Trust Fund. (g) In submitting proposed plans and funding levels under` `subsection (f) of this Section to meet the savings goals` `identified in subsection (b-5) or (b-15) of this Section, as` `applicable, the utility shall:` ``(1) Demonstrate that its proposed energy efficiency` `measures will achieve the applicable requirements that are` `identified in subsection (b-5) or (b-15) of this Section,` `as modified by subsection (f) of this Section.` ``(2) Present specific proposals to implement new` `building and appliance standards that have been placed into` `effect.` ``(3) Demonstrate that its overall portfolio of` `measures, not including low-income programs described in` `subsection (c) of this Section, is cost-effective using the` `total resource cost test or complies with paragraphs (1)` `through (3) of subsection (f) of this Section and` `represents a diverse cross-section of opportunities for` `customers of all rate classes, other than those customers` `described in subsection (l) of this Section, to participate` `in the programs. Individual measures need not be cost` `effective.` ``(4) Present a third-party energy efficiency` `implementation program subject to the following` `requirements:` `(A) beginning with the year commencing January 1,` `2019, electric utilities that serve more than` `3,000,000 retail customers in the State shall fund` `third-party energy efficiency programs in an amount` `that is no less than $25,000,000 per year, and electric` `utilities that serve less than 3,000,000 retail` `customers but more than 500,000 retail customers in the` `State shall fund third-party energy efficiency` `programs in an amount that is no less than $8,350,000` `per year;` `(B) during 2018, the utility shall conduct a` `solicitation process for purposes of requesting` `proposals from third-party vendors for those` `third-party energy efficiency programs to be offered` `during one or more of the years commencing January 1,` `2019, January 1, 2020, and January 1, 2021; for those` `multi-year plans commencing on January 1, 2022 and` `January 1, 2026, the utility shall conduct a` `solicitation process during 2021 and 2025,` `respectively, for purposes of requesting proposals` `from third-party vendors for those third-party energy` `efficiency programs to be offered during one or more` `years of the respective multi-year plan period; for` `each solicitation process, the utility shall identify` `the sector, technology, or geographical area for which` `it is seeking requests for proposals;` `(C) the utility shall propose the bidder` `qualifications, performance measurement process, and` `contract structure, which must include a performance` `payment mechanism and general terms and conditions;` `the proposed qualifications, process, and structure` `shall be subject to Commission approval; and` `(D) the utility shall retain an independent third` `party to score the proposals received through the` `solicitation process described in this paragraph (4),` `rank them according to their cost per lifetime` `kilowatt-hours saved, and assemble the portfolio of` `third-party programs.` ``The electric utility shall recover all costs` `associated with Commission-approved, third-party` `administered programs regardless of the success of those` `programs. ``(4.5)Implement cost-effective demand-response measures` `to reduce peak demand by 0.1% over the prior year for` `eligible retail customers, as defined in Section 16-111.5` `of this Act, and for customers that elect hourly service` `from the utility pursuant to Section 16-107 of this Act,` `provided those customers have not been declared` `competitive. This requirement continues until December 31,` `2026. ``(5) Include a proposed or revised cost-recovery tariff` `mechanism, as provided for under subsection (d) of this` `Section, to fund the proposed energy efficiency and` `demand-response measures and to ensure the recovery of the` `prudently and reasonably incurred costs of` `Commission-approved programs.` ``(6) Provide for an annual independent evaluation of the` `performance of the cost-effectiveness of the utility's` `portfolio of measures, as well as a full review of the` `multi-year plan results of the broader net program impacts` `and, to the extent practical, for adjustment of the` `measures on a going-forward basis as a result of the` `evaluations. The resources dedicated to evaluation shall` `not exceed 3% of portfolio resources in any given year.` ``(7) For electric utilities that serve more than` `3,000,000 retail customers in the State:` `(A) Through December 31, 2025, provide for an` `adjustment to the return on equity component of the` `utility's weighted average cost of capital calculated` `under subsection (d) of this Section:` (i) If the independent evaluator determines` `that the utility achieved a cumulative persisting` `annual savings that is less than the applicable` `annual incremental goal, then the return on equity` `component shall be reduced by a maximum of 200` `basis points in the event that the utility achieved` `no more than 75% of such goal. If the utility` `achieved more than 75% of the applicable annual` `incremental goal but less than 100% of such goal,` `then the return on equity component shall be` `reduced by 8 basis points for each percent by which` `the utility failed to achieve the goal.` (ii) If the independent evaluator determines` `that the utility achieved a cumulative persisting` `annual savings that is more than the applicable` `annual incremental goal, then the return on equity` `component shall be increased by a maximum of 200` `basis points in the event that the utility achieved` `at least 125% of such goal. If the utility achieved` `more than 100% of the applicable annual` `incremental goal but less than 125% of such goal,` `then the return on equity component shall be` `increased by 8 basis points for each percent by` `which the utility achieved above the goal. If the` `applicable annual incremental goal was reduced` `under paragraphs (1) or (2) of subsection (f) of` `this Section, then the following adjustments shall` `be made to the calculations described in this item` `(ii):` ``(aa) the calculation for determining` `achievement that is at least 125% of the` `applicable annual incremental goal shall use` `the unreduced applicable annual incremental` `goal to set the value; and` ``(bb) the calculation for determining` `achievement that is less than 125% but more` `than 100% of the applicable annual incremental` `goal shall use the reduced applicable annual` `incremental goal to set the value for 100%` `achievement of the goal and shall use the` `unreduced goal to set the value for 125%` `achievement. The 8 basis point value shall also` `be modified, as necessary, so that the 200` `basis points are evenly apportioned among each` `percentage point value between 100% and 125%` `achievement.` `(B) For the period January 1, 2026 through December` `31, 2030, provide for an adjustment to the return on` `equity component of the utility's weighted average` `cost of capital calculated under subsection (d) of this` `Section:` (i) If the independent evaluator determines` `that the utility achieved a cumulative persisting` `annual savings that is less than the applicable` `annual incremental goal, then the return on equity` `component shall be reduced by a maximum of 200` `basis points in the event that the utility achieved` `no more than 66% of such goal. If the utility` `achieved more than 66% of the applicable annual` `incremental goal but less than 100% of such goal,` `then the return on equity component shall be` `reduced by 6 basis points for each percent by which` `the utility failed to achieve the goal.` (ii) If the independent evaluator determines` `that the utility achieved a cumulative persisting` `annual savings that is more than the applicable` `annual incremental goal, then the return on equity` `component shall be increased by a maximum of 200` `basis points in the event that the utility achieved` `at least 134% of such goal. If the utility achieved` `more than 100% of the applicable annual` `incremental goal but less than 134% of such goal,` `then the return on equity component shall be` `increased by 6 basis points for each percent by` `which the utility achieved above the goal. If the` `applicable annual incremental goal was reduced` `under paragraph (3) of subsection (f) of this` `Section, then the following adjustments shall be` `made to the calculations described in this item` `(ii):` ``(aa) the calculation for determining` `achievement that is at least 134% of the` `applicable annual incremental goal shall use` `the unreduced applicable annual incremental` `goal to set the value; and` ``(bb) the calculation for determining` `achievement that is less than 134% but more` `than 100% of the applicable annual incremental` `goal shall use the reduced applicable annual` `incremental goal to set the value for 100%` `achievement of the goal and shall use the` `unreduced goal to set the value for 134%` `achievement. The 6 basis point value shall also` `be modified, as necessary, so that the 200` `basis points are evenly apportioned among each` `percentage point value between 100% and 134%` `achievement. ``(7.5) For purposes of this Section, the term` `"applicable annual incremental goal" means the difference` `between the cumulative persisting annual savings goal for` `the calendar year that is the subject of the independent` `evaluator's determination and the cumulative persisting` `annual savings goal for the immediately preceding calendar` `year, as such goals are defined in subsections (b-5) and` `(b-15) of this Section and as these goals may have been` `modified as provided for under subsection (b-20) and` `paragraphs (1) through (3) of subsection (f) of this` `Section. Under subsections (b), (b-5), (b-10), and (b-15)` `of this Section, a utility must first replace energy` `savings from measures that have reached the end of their` `measure lives and would otherwise have to be replaced to` `meet the applicable savings goals identified in subsection` `(b-5) or (b-15) of this Section before any progress towards` `achievement of its applicable annual incremental goal may` `be counted. Notwithstanding anything else set forth in this` `Section, the difference between the actual annual` `incremental savings achieved in any given year, including` `the replacement of energy savings from measures that have` `expired, and the applicable annual incremental goal shall` `not affect adjustments to the return on equity for` `subsequent calendar years under this subsection (g). ``(8) For electric utilities that serve less than` `3,000,000 retail customers but more than 500,000 retail` `customers in the State:` `(A) Through December 31, 2025, the applicable` `annual incremental goal shall be compared to the annual` `incremental savings as determined by the independent` `evaluator.` (i) The return on equity component shall be` `reduced by 8 basis points for each percent by which` `the utility did not achieve 84.4% of the applicable` `annual incremental goal.` (ii) The return on equity component shall be` `increased by 8 basis points for each percent by` `which the utility exceeded 100% of the applicable` `annual incremental goal.` (iii) The return on equity component shall not` `be increased or decreased if the annual` `incremental savings as determined by the` `independent evaluator is greater than 84.4% of the` `applicable annual incremental goal and less than` `100% of the applicable annual incremental goal.` (iv) The return on equity component shall not` `be increased or decreased by an amount greater than` `200 basis points pursuant to this subparagraph` `(A).` `(B) For the period of January 1, 2026 through` `December 31, 2030, the applicable annual incremental` `goal shall be compared to the annual incremental` `savings as determined by the independent evaluator.` (i) The return on equity component shall be` `reduced by 6 basis points for each percent by which` `the utility did not achieve 100% of the applicable` `annual incremental goal.` (ii) The return on equity component shall be` `increased by 6 basis points for each percent by` `which the utility exceeded 100% of the applicable` `annual incremental goal.` (iii) The return on equity component shall not` `be increased or decreased by an amount greater than` `200 basis points pursuant to this subparagraph` `(B).` `(C) If the applicable annual incremental goal was` `reduced under paragraphs (1), (2) or (3) of subsection` `(f) of this Section, then the following adjustments` `shall be made to the calculations described in` `subparagraphs (A) and (B) of this paragraph (8):` (i) The calculation for determining` `achievement that is at least 125% or 134%, as` `applicable, of the applicable annual incremental` `goal shall use the unreduced applicable annual` `incremental goal to set the value.` (ii) For the period through December 31, 2025,` `the calculation for determining achievement that` `is less than 125% but more than 100% of the` `applicable annual incremental goal shall use the` `reduced applicable annual incremental goal to set` `the value for 100% achievement of the goal and` `shall use the unreduced goal to set the value for` `125% achievement. The 8 basis point value shall` `also be modified, as necessary, so that the 200` `basis points are evenly apportioned among each` `percentage point value between 100% and 125%` `achievement.` (iii) For the period of January 1, 2026 through` `December 31, 2030, the calculation for determining` `achievement that is less than 134% but more than` `100% of the applicable annual incremental goal` `shall use the reduced applicable annual` `incremental goal to set the value for 100%` `achievement of the goal and shall use the unreduced` `goal to set the value for 125% achievement. The 6` `basis point value shall also be modified, as` `necessary, so that the 200 basis points are evenly` `apportioned among each percentage point value` `between 100% and 134% achievement.` ``(9) The utility shall submit the energy savings data to` `the independent evaluator no later than 30 days after the` `close of the plan year. The independent evaluator shall` `determine the cumulative persisting annual savings for a` `given plan year no later than 120 days after the close of` `the plan year. The utility shall submit an informational` `filing to the Commission no later than 160 days after the` `close of the plan year that attaches the independent` `evaluator's final report identifying the cumulative` `persisting annual savings for the year and calculates,` `under paragraph (7) or (8) of this subsection (g), as` `applicable, any resulting change to the utility's return on` `equity component of the weighted average cost of capital` `applicable to the next plan year beginning with the January` `monthly billing period and extending through the December` `monthly billing period. However, if the utility recovers` `the costs incurred under this Section under paragraphs (2)` `and (3) of subsection (d) of this Section, then the utility` `shall not be required to submit such informational filing,` `and shall instead submit the information that would` `otherwise be included in the informational filing as part` `of its filing under paragraph (3) of such subsection (d)` `that is due on or before June 1 of each year.` ``For those utilities that must submit the informational` `filing, the Commission may, on its own motion or by` `petition, initiate an investigation of such filing,` `provided, however, that the utility's proposed return on` `equity calculation shall be deemed the final, approved` `calculation on December 15 of the year in which it is filed` `unless the Commission enters an order on or before December` `15, after notice and hearing, that modifies such` `calculation consistent with this Section.` ``The adjustments to the return on equity component` `described in paragraphs (7) and (8) of this subsection (g)` `shall be applied as described in such paragraphs through a` `separate tariff mechanism, which shall be filed by the` `utility under subsections (f) and (g) of this Section. (h) No more than 6% of energy efficiency and` `demand-response program revenue may be allocated for research,` `development, or pilot deployment of new equipment or measures. (i) When practicable, electric utilities shall incorporate` `advanced metering infrastructure data into the planning,` `implementation, and evaluation of energy efficiency measures` `and programs, subject to the data privacy and confidentiality` `protections of applicable law.` (j) The independent evaluator shall follow the guidelines` `and use the savings set forth in Commission-approved energy` `efficiency policy manuals and technical reference manuals, as` `each may be updated from time to time. Until such time as` `measure life values for energy efficiency measures implemented` `for low-income households under subsection (c) of this Section` `are incorporated into such Commission-approved manuals, the` `low-income measures shall have the same measure life values` `that are established for same measures implemented in` `households that are not low-income households.` (k) Notwithstanding any provision of law to the contrary,` `an electric utility subject to the requirements of this Section` `may file a tariff cancelling an automatic adjustment clause` `tariff in effect under this Section or Section 8-103, which` `shall take effect no later than one business day after the date` `such tariff is filed. Thereafter, the utility shall be` `authorized to defer and recover its expenditures incurred under` `this Section through a new tariff authorized under subsection` `(d) of this Section or in the utility's next rate case under` `Article IX or Section 16-108.5 of this Act, with interest at an` `annual rate equal to the utility's weighted average cost of` `capital as approved by the Commission in such case. If the` `utility elects to file a new tariff under subsection (d) of` `this Section, the utility may file the tariff within 10 days` `after the effective date of this amendatory Act of the 99th` `General Assembly, and the cost inputs to such tariff shall be` `based on the projected costs to be incurred by the utility` `during the calendar year in which the new tariff is filed and` `that were not recovered under the tariff that was cancelled as` `provided for in this subsection. Such costs shall include those` `incurred or to be incurred by the utility under its multi-year` `plan approved under subsections (f) and (g) of this Section,` `including, but not limited to, projected capital investment` `costs and projected regulatory asset balances with` `correspondingly updated depreciation and amortization reserves` `and expense. The Commission shall, after notice and hearing,` `approve, or approve with modification, such tariff and cost` `inputs no later than 75 days after the utility filed the` `tariff, provided that such approval, or approval with` `modification, shall be consistent with the provisions of this` `Section to the extent they do not conflict with this subsection` `(k). The tariff approved by the Commission shall take effect no` `later than 5 days after the Commission enters its order` `approving the tariff.` No later than 60 days after the effective date of the` `tariff cancelling the utility's automatic adjustment clause` `tariff, the utility shall file a reconciliation that reconciles` `the moneys collected under its automatic adjustment clause` `tariff with the costs incurred during the period beginning June` `1, 2016 and ending on the date that the electric utility's` `automatic adjustment clause tariff was cancelled. In the event` `the reconciliation reflects an under-collection, the utility` `shall recover the costs as specified in this subsection (k). If` `the reconciliation reflects an over-collection, the utility` `shall apply the amount of such over-collection as a one-time` `credit to retail customers' bills.` (l) For the calendar years covered by a multi-year plan` `commencing after December 31, 2017, subsections (a) through (j)` `of this Section do not apply to any retail customers of an` `electric utility that serves more than 3,000,000 retail` `customers in the State and whose total highest 30 minute demand` `was more than 10,000 kilowatts, or any retail customers of an` `electric utility that serves less than 3,000,000 retail` `customers but more than 500,000 retail customers in the State` `and whose total highest 15 minute demand was more than 10,000` `kilowatts. For purposes of this subsection (l), "retail` `customer" has the meaning set forth in Section 16-102 of this` `Act. A determination of whether this subsection is applicable` `to a customer shall be made for each multi-year plan beginning` `after December 31, 2017. The criteria for determining whether` `this subsection (l) is applicable to a retail customer shall be` `based on the 12 consecutive billing periods prior to the start` `of the first year of each such multi-year plan. (m) Notwithstanding the requirements of this Section, as` `part of a proceeding to approve a multi-year plan under` `subsections (f) and (g) of this Section, the Commission shall` `reduce the amount of energy efficiency measures implemented for` `any single year, and whose costs are recovered under subsection` `(d) of this Section, by an amount necessary to limit the` `estimated average net increase due to the cost of the measures` `to no more than` ``(1) 3.5% for the each of the 4 years beginning January` `1, 2018,` ``(2) 3.75% for each of the 4 years beginning January 1,` `2022, and` ``(3) 4% for each of the 5 years beginning January 1,` `2026,` `of the average amount paid per kilowatthour by residential` `eligible retail customers during calendar year 2015. To` `determine the total amount that may be spent by an electric` `utility in any single year, the applicable percentage of the` `average amount paid per kilowatthour shall be multiplied by the` `total amount of energy delivered by such electric utility in` `the calendar year 2015, adjusted to reflect the proportion of` `the utility's load attributable to customers who are exempt` `from subsections (a) through (j) of this Section under` `subsection (l) of this Section. For purposes of this subsection` `(m), the amount paid per kilowatthour includes, without` `limitation, estimated amounts paid for supply, transmission,` `distribution, surcharges, and add-on taxes. For purposes of` `this Section, "eligible retail customers" shall have the` `meaning set forth in Section 16-111.5 of this Act. Once the` `Commission has approved a plan under subsections (f) and (g) of` `this Section, no subsequent rate impact determinations shall be` `made.` (220 ILCS 5/8-104) Sec. 8-104.``Natural gas energy efficiency programs.` (a) It is the policy of the State that natural gas` `utilities and the Department of Commerce and Economic` `Opportunity are required to use cost-effective energy` `efficiency to reduce direct and indirect costs to consumers. It` `serves the public interest to allow natural gas utilities to` `recover costs for reasonably and prudently incurred expenses` `for cost-effective energy efficiency measures.` (b) For purposes of this Section, "energy efficiency" means` `measures that reduce the amount of energy required to achieve a` `given end use. "Energy efficiency" also includes measures that` `reduce the total Btus of electricity and natural gas needed to` `meet the end use or uses. "Cost-effective" means that the` `measures satisfy the total resource cost test which, for` `purposes of this Section, means a standard that is met if, for` `an investment in energy efficiency, the benefit-cost ratio is` `greater than one. The benefit-cost ratio is the ratio of the` `net present value of the total benefits of the measures to the` `net present value of the total costs as calculated over the` `lifetime of the measures. The total resource cost test compares` `the sum of avoided natural gas utility costs, representing the` `benefits that accrue to the system and the participant in the` `delivery of those efficiency measures, as well as other` `quantifiable societal benefits, including avoided electric` `utility costs, to the sum of all incremental costs of end use` `measures (including both utility and participant` `contributions), plus costs to administer, deliver, and` `evaluate each demand-side measure, to quantify the net savings` `obtained by substituting demand-side measures for supply` `resources. In calculating avoided costs, reasonable estimates` `shall be included for financial costs likely to be imposed by` `future regulation of emissions of greenhouse gases. The` `low-income programs described in item (4) of subsection (f) of` `this Section shall not be required to meet the total resource` `cost test.` (c) Natural gas utilities shall implement cost-effective` `energy efficiency measures to meet at least the following` `natural gas savings requirements, which shall be based upon the` `total amount of gas delivered to retail customers, other than` `the customers described in subsection (m) of this Section,` `during calendar year 2009 multiplied by the applicable` `percentage. Natural gas utilities may comply with this Section` `by meeting the annual incremental savings goal in the` `applicable year or by showing that total cumulative annual` `savings within a``multi-year `3-year``planning period associated` `with measures implemented after May 31, 2011 were equal to the` `sum of each annual incremental savings requirement from``the` `first day of the multi-year planning period `May 31, 2011 `through the``last day of the multi-year planning period `end of` `the applicable year``:` ``(1) 0.2% by May 31, 2012;` ``(2) an additional 0.4% by May 31, 2013, increasing` `total savings to .6%;` ``(3) an additional 0.6% by May 31, 2014, increasing` `total savings to 1.2%;` ``(4) an additional 0.8% by May 31, 2015, increasing` `total savings to 2.0%;` ``(5) an additional 1% by May 31, 2016, increasing total` `savings to 3.0%;` ``(6) an additional 1.2% by May 31, 2017, increasing` `total savings to 4.2%;` ``(7) an additional 1.4%``in the year commencing January` `1, 2018 `by May 31, 2018, increasing total savings to 5.6%``;` ``(8) an additional 1.5%``in the year commencing January` `1, 2019 `by May 31, 2019, increasing total savings to 7.1%``;` `and` ``(9) an additional 1.5% in each 12-month period` `thereafter.` (d) Notwithstanding the requirements of subsection (c) of` `this Section, a natural gas utility shall limit the amount of` `energy efficiency implemented in any``multi-year `3-year `reporting period established by subsection (f) of Section 8-104` `of this Act, by an amount necessary to limit the estimated` `average increase in the amounts paid by retail customers in` `connection with natural gas service to no more than 2% in the` `applicable``multi-year `3-year``reporting period. The energy` `savings requirements in subsection (c) of this Section may be` `reduced by the Commission for the subject plan, if the utility` `demonstrates by substantial evidence that it is highly unlikely` `that the requirements could be achieved without exceeding the` `applicable spending limits in any``multi-year `3-year``reporting` `period. No later than September 1, 2013, the Commission shall` `review the limitation on the amount of energy efficiency` `measures implemented pursuant to this Section and report to the` `General Assembly, in the report required by subsection (k) of` `this Section, its findings as to whether that limitation unduly` `constrains the procurement of energy efficiency measures.` (e)``The provisions of this subsection (e) apply to those` `multi-year plans that commence prior to January 1, 2018 `Natural` `gas utilities shall be responsible for overseeing the design,` `development, and filing of their efficiency plans with the` `Commission``. The utility shall utilize 75% of the available` `funding associated with energy efficiency programs approved by` `the Commission, and may outsource various aspects of program` `development and implementation. The remaining 25% of available` `funding shall be used by the Department of Commerce and` `Economic Opportunity to implement energy efficiency measures` `that achieve no less than 20% of the requirements of subsection` `(c) of this Section. Such measures shall be designed in` `conjunction with the utility and approved by the Commission.` `The Department may outsource development and implementation of` `energy efficiency measures. A minimum of 10% of the entire` `portfolio of cost-effective energy efficiency measures shall` `be procured from local government, municipal corporations,` `school districts, and community college districts. Five` `percent of the entire portfolio of cost-effective energy` `efficiency measures may be granted to local government and` `municipal corporations for market transformation initiatives.` `The Department shall coordinate the implementation of these` `measures and shall integrate delivery of natural gas efficiency` `programs with electric efficiency programs delivered pursuant` `to Section 8-103 of this Act, unless the Department can show` `that integration is not feasible.` The apportionment of the dollars to cover the costs to` `implement the Department's share of the portfolio of energy` `efficiency measures shall be made to the Department once the` `Department has executed rebate agreements, grants, or` `contracts for energy efficiency measures and provided` `supporting documentation for those rebate agreements, grants,` `and contracts to the utility. The Department is authorized to` `adopt any rules necessary and prescribe procedures in order to` `ensure compliance by applicants in carrying out the purposes of` `rebate agreements for energy efficiency measures implemented` `by the Department made under this Section.` The details of the measures implemented by the Department` `shall be submitted by the Department to the Commission in` `connection with the utility's filing regarding the energy` `efficiency measures that the utility implements.` The portfolio of measures, administered by both the` `utilities and the Department, shall, in combination, be` `designed to achieve the annual energy savings requirements set` `forth in subsection (c) of this Section, as modified by` `subsection (d) of this Section.` The utility and the Department shall agree upon a` `reasonable portfolio of measures and determine the measurable` `corresponding percentage of the savings goals associated with` `measures implemented by the Department.` No utility shall be assessed a penalty under subsection (f)` `of this Section for failure to make a timely filing if that` `failure is the result of a lack of agreement with the` `Department with respect to the allocation of responsibilities` `or related costs or target assignments. In that case, the` `Department and the utility shall file their respective plans` `with the Commission and the Commission shall determine an` `appropriate division of measures and programs that meets the` `requirements of this Section.` (e-5) The provisions of this subsection (e-5) shall be` `applicable to those multi-year plans that commence after` `December 31, 2017. Natural gas utilities shall be responsible` `for overseeing the design, development, and filing of their` `efficiency plans with the Commission and may outsource` `development and implementation of energy efficiency measures.` `A minimum of 10% of the entire portfolio of cost-effective` `energy efficiency measures shall be procured from local` `government, municipal corporations, school districts, and` `community college districts. Five percent of the entire` `portfolio of cost-effective energy efficiency measures may be` `granted to local government and municipal corporations for` `market transformation initiatives.` The utilities shall also present a portfolio of energy` `efficiency measures proportionate to the share of total annual` `utility revenues in Illinois from households at or below 150%` `of the poverty level. Such programs shall be targeted to` `households with incomes at or below 80% of area median income. (e-10)``A utility providing approved energy efficiency` `measures in this State shall be permitted to recover costs of` `those measures through an automatic adjustment clause tariff` `filed with and approved by the Commission. The tariff shall be` `established outside the context of a general rate case and` `shall be applicable to the utility's customers other than the` `customers described in subsection (m) of this Section. Each` `year the Commission shall initiate a review to reconcile any` `amounts collected with the actual costs and to determine the` `required adjustment to the annual tariff factor to match annual` `expenditures.` (e-15) For those multi-year plans that commence prior to` `January 1, 2018, each `Each``utility shall include, in its` `recovery of costs, the costs estimated for both the utility's` `and the Department's implementation of energy efficiency` `measures. Costs collected by the utility for measures` `implemented by the Department shall be submitted to the` `Department pursuant to Section 605-323 of the Civil` `Administrative Code of Illinois, shall be deposited into the` `Energy Efficiency Portfolio Standards Fund, and shall be used` `by the Department solely for the purpose of implementing these` `measures. A utility shall not be required to advance any moneys` `to the Department but only to forward such funds as it has` `collected. The Department shall report to the Commission on an` `annual basis regarding the costs actually incurred by the` `Department in the implementation of the measures. Any changes` `to the costs of energy efficiency measures as a result of plan` `modifications shall be appropriately reflected in amounts` `recovered by the utility and turned over to the Department.` The portfolio of measures, administered by both the` `utilities and the Department, shall, in combination, be` `designed to achieve the annual energy savings requirements set` `forth in subsection (c) of this Section, as modified by` `subsection (d) of this Section.` The utility and the Department shall agree upon a` `reasonable portfolio of measures and determine the measurable` `corresponding percentage of the savings goals associated with` `measures implemented by the Department.` No utility shall be assessed a penalty under subsection (f)` `of this Section for failure to make a timely filing if that` `failure is the result of a lack of agreement with the` `Department with respect to the allocation of responsibilities` `or related costs or target assignments. In that case, the` `Department and the utility shall file their respective plans` `with the Commission and the Commission shall determine an` `appropriate division of measures and programs that meets the` `requirements of this Section.` If the Department is unable to meet performance` `requirements for the portion of the portfolio implemented by` `the Department, then the utility and the Department shall` `jointly submit a modified filing to the Commission explaining` `the performance shortfall and recommending an appropriate` `course going forward, including any program modifications that` `may be appropriate in light of the evaluations conducted under` `item (8) of subsection (f) of this Section. In this case, the` `utility obligation to collect the Department's costs and turn` `over those funds to the Department under this subsection (e)` `shall continue only if the Commission approves the` `modifications to the plan proposed by the Department.` (f) No later than October 1, 2010, each gas utility shall` `file an energy efficiency plan with the Commission to meet the` `energy efficiency standards through May 31, 2014.``No later than` `October 1, 2013, each gas utility shall file an energy` `efficiency plan with the Commission to meet the energy` `efficiency standards through May 31, 2017. Beginning in 2017` `and every 4 `Every 3``years thereafter, each utility shall file``,` `no later than October 1,``an energy efficiency plan with the` `Commission``to meet the energy efficiency standards for the next` `applicable 4-year period beginning January 1 of the year` `following the filing. For those multi-year plans commencing on` `January 1, 2018, each utility shall file its proposed energy` `efficiency plan no later than 30 days after the effective date` `of this amendatory Act of the 99th General Assembly or May 1,` `2017, whichever is later. Beginning in 2021 and every 4 years` `thereafter, each utility shall file its energy efficiency plan` `no later than March 1``. If a utility does not file such a plan``on` `or before the applicable filing deadline for the plan `by` `October 1 of the applicable year``, then it shall face a penalty` `of $100,000 per day until the plan is filed.` Each utility's plan shall set forth the utility's proposals` `to meet the utility's portion of the energy efficiency` `standards identified in subsection (c) of this Section, as` `modified by subsection (d) of this Section, taking into account` `the unique circumstances of the utility's service territory.` `For those plans commencing after December 31, 2021, the `The `Commission shall seek public comment on the utility's plan and` `shall issue an order approving or disapproving each plan``within` `6 months after its submission. For those plans commencing on` `January 1, 2018, the Commission shall seek public comment on` `the utility's plan and shall issue an order approving or` `disapproving each plan no later than August 31, 2017, or 105` `days after the effective date of this amendatory Act of the` `99th General Assembly, whichever is later``. If the Commission` `disapproves a plan, the Commission shall, within 30 days,` `describe in detail the reasons for the disapproval and describe` `a path by which the utility may file a revised draft of the` `plan to address the Commission's concerns satisfactorily. If` `the utility does not refile with the Commission within 60 days` `after the disapproval, the utility shall be subject to` `penalties at a rate of $100,000 per day until the plan is` `filed. This process shall continue, and penalties shall accrue,` `until the utility has successfully filed a portfolio of energy` `efficiency measures. Penalties shall be deposited into the` `Energy Efficiency Trust Fund and the cost of any such penalties` `may not be recovered from ratepayers. In submitting proposed` `energy efficiency plans and funding levels to meet the savings` `goals adopted by this Act the utility shall:` ``(1) Demonstrate that its proposed energy efficiency` `measures will achieve the requirements that are identified` `in subsection (c) of this Section, as modified by` `subsection (d) of this Section.` ``(2) Present specific proposals to implement new` `building and appliance standards that have been placed into` `effect.` ``(3) Present estimates of the total amount paid for gas` `service expressed on a per therm basis associated with the` `proposed portfolio of measures designed to meet the` `requirements that are identified in subsection (c) of this` `Section, as modified by subsection (d) of this Section.` ``(4)``For those multi-year plans that commence prior to` `January 1, 2018, coordinate `Coordinate``with the Department` `to present a portfolio of energy efficiency measures` `proportionate to the share of total annual utility revenues` `in Illinois from households at or below 150% of the poverty` `level. Such programs shall be targeted to households with` `incomes at or below 80% of area median income.` ``(5) Demonstrate that its overall portfolio of energy` `efficiency measures, not including``low-income``programs` `described in `covered by``item (4) of this subsection (f)``and` `subsection (e-5) of this Section``, are cost-effective using` `the total resource cost test and represent a diverse cross` `section of opportunities for customers of all rate classes` `to participate in the programs.` ``(6) Demonstrate that a gas utility affiliated with an` `electric utility that is required to comply with Section` `8-103``or 8-103B``of this Act has integrated gas and electric` `efficiency measures into a single program that reduces` `program or participant costs and appropriately allocates` `costs to gas and electric ratepayers.``For those multi-year` `plans that commence prior to January 1, 2018, the `The `Department shall integrate all gas and electric programs it` `delivers in any such utilities' service territories,` `unless the Department can show that integration is not` `feasible or appropriate.` ``(7) Include a proposed cost recovery tariff mechanism` `to fund the proposed energy efficiency measures and to` `ensure the recovery of the prudently and reasonably` `incurred costs of Commission-approved programs.` ``(8) Provide for quarterly status reports tracking` `implementation of and expenditures for the utility's` `portfolio of measures and``, if applicable,``the Department's` `portfolio of measures, an annual independent review, and a` `full independent evaluation of the``multi-year `3-year `results of the performance and the cost-effectiveness of` `the utility's and``, if applicable,``Department's portfolios` `of measures and broader net program impacts and, to the` `extent practical, for adjustment of the measures on a going` `forward basis as a result of the evaluations. The resources` `dedicated to evaluation shall not exceed 3% of portfolio` `resources in any given``multi-year `3-year``period.` (g) No more than 3% of expenditures on energy efficiency` `measures may be allocated for demonstration of breakthrough` `equipment and devices.` (h) Illinois natural gas utilities that are affiliated by` `virtue of a common parent company may, at the utilities'` `request, be considered a single natural gas utility for` `purposes of complying with this Section.` (i) If, after 3 years, a gas utility fails to meet the` `efficiency standard specified in subsection (c) of this Section` `as modified by subsection (d), then it shall make a` `contribution to the Low-Income Home Energy Assistance Program.` `The total liability for failure to meet the goal shall be` `assessed as follows:` ``(1) a large gas utility shall pay $600,000;` ``(2) a medium gas utility shall pay $400,000; and` ``(3) a small gas utility shall pay $200,000.` For purposes of this Section, (i) a "large gas utility" is` `a gas utility that on December 31, 2008, served more than` `1,500,000 gas customers in Illinois; (ii) a "medium gas` `utility" is a gas utility that on December 31, 2008, served` `fewer than 1,500,000, but more than 500,000 gas customers in` `Illinois; and (iii) a "small gas utility" is a gas utility that` `on December 31, 2008, served fewer than 500,000 and more than` `100,000 gas customers in Illinois. The costs of this` `contribution may not be recovered from ratepayers.` If a gas utility fails to meet the efficiency standard` `specified in subsection (c) of this Section, as modified by` `subsection (d) of this Section, in any 2 consecutive``multi-year `3-year``planning periods, then the responsibility for` `implementing the utility's energy efficiency measures shall be` `transferred to an independent program administrator selected` `by the Commission. Reasonable and prudent costs incurred by the` `independent program administrator to meet the efficiency` `standard specified in subsection (c) of this Section, as` `modified by subsection (d) of this Section, may be recovered` `from the customers of the affected gas utilities, other than` `customers described in subsection (m) of this Section. The` `utility shall provide the independent program administrator` `with all information and assistance necessary to perform the` `program administrator's duties including but not limited to` `customer, account, and energy usage data, and shall allow the` `program administrator to include inserts in customer bills. The` `utility may recover reasonable costs associated with any such` `assistance.` (j) No utility shall be deemed to have failed to meet the` `energy efficiency standards to the extent any such failure is` `due to a failure of the Department.` (k) Not later than January 1, 2012, the Commission shall` `develop and solicit public comment on a plan to foster` `statewide coordination and consistency between statutorily` `mandated natural gas and electric energy efficiency programs to` `reduce program or participant costs or to improve program` `performance. Not later than September 1, 2013, the Commission` `shall issue a report to the General Assembly containing its` `findings and recommendations.` (l) This Section does not apply to a gas utility that on` `January 1, 2009, provided gas service to fewer than 100,000` `customers in Illinois.` (m) Subsections (a) through (k) of this Section do not` `apply to customers of a natural gas utility that have a North` `American Industry Classification System code number that is` `22111 or any such code number beginning with the digits 31, 32,` `or 33 and (i) annual usage in the aggregate of 4 million therms` `or more within the service territory of the affected gas` `utility or with aggregate usage of 8 million therms or more in` `this State and complying with the provisions of item (l) of` `this subsection (m); or (ii) using natural gas as feedstock and` `meeting the usage requirements described in item (i) of this` `subsection (m), to the extent such annual feedstock usage is` `greater than 60% of the customer's total annual usage of` `natural gas.` ``(1) Customers described in this subsection (m) of this` `Section shall apply, on a form approved on or before` `October 1, 2009 by the Department, to the Department to be` `designated as a self-directing customer ("SDC") or as an` `exempt customer using natural gas as a feedstock from which` `other products are made, including, but not limited to,` `feedstock for a hydrogen plant, on or before the 1st day of` `February, 2010. Thereafter, application may be made not` `less than 6 months before the filing date of the gas` `utility energy efficiency plan described in subsection (f)` `of this Section; however, a new customer that commences` `taking service from a natural gas utility after February 1,` `2010 may apply to become a SDC or exempt customer up to 30` `days after beginning service. Customers described in this` `subsection (m) that have not already been approved by the` `Department may apply to be designated a self-directing` `customer or exempt customer, on a form approved by the` `Department, between September 1, 2013 and September 30,` `2013. Customer applications that are approved by the` `Department under this amendatory Act of the 98th General` `Assembly shall be considered to be a self-directing` `customer or exempt customer, as applicable, for the current` `3-year planning period effective December 1, 2013. Such` `application shall contain the following:` `(A) the customer's certification that, at the time` `of its application, it qualifies to be a SDC or exempt` `customer described in this subsection (m) of this` `Section;` `(B) in the case of a SDC, the customer's` `certification that it has established or will` `establish by the beginning of the utility's``multi-year `3-year``planning period commencing subsequent to the` `application, and will maintain for accounting` `purposes, an energy efficiency reserve account and` `that the customer will accrue funds in said account to` `be held for the purpose of funding, in whole or in` `part, energy efficiency measures of the customer's` `choosing, which may include, but are not limited to,` `projects involving combined heat and power systems` `that use the same energy source both for the generation` `of electrical or mechanical power and the production of` `steam or another form of useful thermal energy or the` `use of combustible gas produced from biomass, or both;` `(C) in the case of a SDC, the customer's` `certification that annual funding levels for the` `energy efficiency reserve account will be equal to 2%` `of the customer's cost of natural gas, composed of the` `customer's commodity cost and the delivery service` `charges paid to the gas utility, or $150,000, whichever` `is less;` `(D) in the case of a SDC, the customer's` `certification that the required reserve account` `balance will be capped at 3 years' worth of accruals` `and that the customer may, at its option, make further` `deposits to the account to the extent such deposit` `would increase the reserve account balance above the` `designated cap level;` `(E) in the case of a SDC, the customer's` `certification that by October 1 of each year, beginning` `no sooner than October 1, 2012, the customer will` `report to the Department information, for the 12-month` `period ending May 31 of the same year, on all deposits` `and reductions, if any, to the reserve account during` `the reporting year, and to the extent deposits to the` `reserve account in any year are in an amount less than` `$150,000, the basis for such reduced deposits; reserve` `account balances by month; a description of energy` `efficiency measures undertaken by the customer and` `paid for in whole or in part with funds from the` `reserve account; an estimate of the energy saved, or to` `be saved, by the measure; and that the report shall` `include a verification by an officer or plant manager` `of the customer or by a registered professional` `engineer or certified energy efficiency trade` `professional that the funds withdrawn from the reserve` `account were used for the energy efficiency measures;` `(F) in the case of an exempt customer, the` `customer's certification of the level of gas usage as` `feedstock in the customer's operation in a typical year` `and that it will provide information establishing this` `level, upon request of the Department;` `(G) in the case of either an exempt customer or a` `SDC, the customer's certification that it has provided` `the gas utility or utilities serving the customer with` `a copy of the application as filed with the Department;` `(H) in the case of either an exempt customer or a` `SDC, certification of the natural gas utility or` `utilities serving the customer in Illinois including` `the natural gas utility accounts that are the subject` `of the application; and` `(I) in the case of either an exempt customer or a` `SDC, a verification signed by a plant manager or an` `authorized corporate officer attesting to the` `truthfulness and accuracy of the information contained` `in the application.` ``(2) The Department shall review the application to` `determine that it contains the information described in` `provisions (A) through (I) of item (1) of this subsection` `(m), as applicable. The review shall be completed within 30` `days after the date the application is filed with the` `Department. Absent a determination by the Department` `within the 30-day period, the applicant shall be considered` `to be a SDC or exempt customer, as applicable, for all` `subsequent``multi-year `3-year``planning periods, as of the` `date of filing the application described in this subsection` `(m). If the Department determines that the application does` `not contain the applicable information described in` `provisions (A) through (I) of item (1) of this subsection` `(m), it shall notify the customer, in writing, of its` `determination that the application does not contain the` `required information and identify the information that is` `missing, and the customer shall provide the missing` `information within 15 working days after the date of` `receipt of the Department's notification.` ``(3) The Department shall have the right to audit the` `information provided in the customer's application and` `annual reports to ensure continued compliance with the` `requirements of this subsection. Based on the audit, if the` `Department determines the customer is no longer in` `compliance with the requirements of items (A) through (I)` `of item (1) of this subsection (m), as applicable, the` `Department shall notify the customer in writing of the` `noncompliance. The customer shall have 30 days to establish` `its compliance, and failing to do so, may have its status` `as a SDC or exempt customer revoked by the Department. The` `Department shall treat all information provided by any` `customer seeking SDC status or exemption from the` `provisions of this Section as strictly confidential.` ``(4) Upon request, or on its own motion, the Commission` `may open an investigation, no more than once every 3 years` `and not before October 1, 2014, to evaluate the` `effectiveness of the self-directing program described in` `this subsection (m).` Customers described in this subsection (m) that applied to` `the Department on January 3, 2013, were approved by the` `Department on February 13, 2013 to be a self-directing customer` `or exempt customer, and receive natural gas from a utility that` `provides gas service to at least 500,000 retail customers in` `Illinois and electric service to at least 1,000,000 retail` `customers in Illinois shall be considered to be a` `self-directing customer or exempt customer, as applicable, for` `the current 3-year planning period effective December 1, 2013.` (n) The applicability of this Section to customers` `described in subsection (m) of this Section is conditioned on` `the existence of the SDC program. In no event will any` `provision of this Section apply to such customers after January` `1, 2020. (o) Utilities' 3-year energy efficiency plans approved by` `the Commission on or before the effective date of this` `amendatory Act of the 99th General Assembly for the period June` `1, 2014 through May 31, 2017 shall continue to be in force and` `effect through December 31, 2017 so that the energy efficiency` `programs set forth in those plans continue to be offered during` `the period June 1, 2017 through December 31, 2017. Each utility` `is authorized to increase, on a pro rata basis, the energy` `savings goals and budgets approved in its plan to reflect the` `additional 7 months of the plan's operation. `(Source: P.A. 97-813, eff. 7-13-12; 97-841, eff. 7-20-12;` `98-90, eff. 7-15-13; 98-225, eff. 8-9-13; 98-604, eff.` `12-17-13.)` (220 ILCS 5/9-107 new)` Sec. 9-107.``Revenue balancing adjustments.` (a) In this Section:` "Reconciliation period" means a period beginning with the` `January monthly billing period and extending through the` `December monthly billing period.` "Rate case reconciliation revenue requirement" means the` `final distribution revenue requirement or requirements` `approved by the Commission in the utility's rate case or` `formula rate proceeding to set the rates initially applicable` `in the relevant reconciliation period after the conclusion of` `the period. In the event the Commission has approved more than` `one revenue requirement for the reconciliation period, the` `amount of rate case revenue under each approved revenue` `requirement shall be prorated based upon the number of days` `under which each revenue requirement was in effect.` (b) If an electric utility has a performance-based formula` `rate in effect under Section 16-108.5, then the utility shall` `be permitted to revise the formula rate and schedules to reduce` `the 50 basis point values to zero that would otherwise apply` `under paragraph (5) of subsection (c) of Section 16-108.5. Such` `revision and reduction shall apply beginning with the` `reconciliation conducted for the 2017 calendar year.` If the utility no longer has a performance-based formula in` `effect under Section 16-108.5, then the utility shall be` `permitted to implement the revenue balancing adjustment tariff` `described in subsection (c) of this Section.` (c) An electric utility that is authorized under subsection` `(b) of this Section to implement a revenue balancing adjustment` `tariff may file the tariff for the purpose of preventing` `undercollections or overcollections of distribution revenues` `as compared to the revenue requirement or requirements approved` `by the Commission on which the rates giving rise to those` `revenues were based. The tariff shall calculate an annual` `adjustment that reflects any difference between the actual` `delivery service revenue billed for services provided during` `the relevant reconciliation period and the rate case` `reconciliation revenue requirement for the relevant` `reconciliation period and shall set forth the reconciliation` `categories or classes, or a combination of both, in a manner` `determined at the utility's discretion.` (d) A utility that elects to file the tariff authorized by` `this Section shall file the tariff outside the context of a` `general rate case or formula rate proceeding, and the` `Commission shall, after notice and hearing, approve the tariff` `or approve with modification no later than 120 days after the` `utility files the tariff, and the tariff shall remain in effect` `at the discretion of the utility. The tariff shall also require` `that the electric utility submit an annual revenue balancing` `reconciliation report to the Commission reflecting the` `difference between the actual delivery service revenue and rate` `case revenue for the applicable reconciliation and identifying` `the charges or credits to be applied thereafter. The annual` `revenue balancing reconciliation report shall be filed with the` `Commission no later than March 20 of the year following a` `reconciliation period. The Commission may initiate a review of` `the revenue balancing reconciliation report each year to` `determine if any subsequent adjustment is necessary to align` `actual delivery service revenue and rate case revenue. In the` `event the Commission elects to initiate such review, the` `Commission shall, after notice and hearing, enter an order` `approving, or approving as modified, such revenue balancing` `reconciliation report no later than 120 days after the utility` `files its report with the Commission. If the Commission does` `not initiate such review, the revenue balancing reconciliation` `report and the identified charges or credits shall be deemed` `accepted and approved 120 days after the utility files the` `report and shall not be subject to review in any other` `proceeding.` (220 ILCS 5/16-107) ` Sec. 16-107.``Real-time pricing. (a) Each electric utility shall file, on or before May 1,` `1998, a tariff or tariffs which allow nonresidential retail` `customers in the electric utility's service area to elect` `real-time pricing beginning October 1, 1998. (b) Each electric utility shall file, on or before May 1,` `2000, a tariff or tariffs which allow residential retail` `customers in the electric utility's service area to elect` `real-time pricing beginning October 1, 2000. (b-5) Each electric utility shall file a tariff or tariffs` `allowing residential retail customers in the electric` `utility's service area to elect real-time pricing beginning` `January 2, 2007.``The Commission may, after notice and hearing,` `approve the tariff or tariffs. `A customer who elects real-time` `pricing shall remain on such rate for a minimum of 12 months.` `The Commission may, after notice and hearing, approve the` `tariff or tariffs, provided that the Commission finds that the` `potential for demand reductions will result in net economic` `benefits to all residential customers of the electric utility.` `In examining economic benefits from demand reductions, the` `Commission shall, at a minimum, consider the following:` `improvements to system reliability and power quality,` `reduction in wholesale market prices and price volatility,` `electric utility cost avoidance and reductions, market power` `mitigation, and other benefits of demand reductions, but only` `to the extent that the effects of reduced demand can be` `demonstrated to lower the cost of electricity delivered to` `residential customers.``A tariff or tariffs approved pursuant to` `this subsection (b-5) shall, at a minimum, describe (i) the` `methodology for determining the market price of energy to be` `reflected in the real-time rate and (ii) the manner in which` `customers who elect real-time pricing will be provided with` `ready access to hourly market prices, including, but not` `limited to, day-ahead hourly energy prices.``A customer who` `elects real-time pricing under a tariff approved under this` `subsection (b-5) and thereafter terminates the election shall` `not return to taking service under the tariff for a period of` `12 months following the date on which the customer terminated` `real-time pricing. However, this limitation shall cease to` `apply on such date that the provision of electric power and` `energy is declared competitive under Section 16-113 of this Act` `for the customer group or groups to which this subsection (b-5)` `applies. A proceeding under this subsection (b-5) may not exceed 120` `days in length.` (b-10) Each electric utility providing real-time pricing` `pursuant to subsection (b-5) shall install a meter capable of` `recording hourly interval energy use at the service location of` `each customer that elects real-time pricing pursuant to this` `subsection.` (b-15) If the Commission issues an order pursuant to` `subsection (b-5), the affected electric utility shall contract` `with an entity not affiliated with the electric utility to` `serve as a program administrator to develop and implement a` `program to provide consumer outreach, enrollment, and` `education concerning real-time pricing and to establish and` `administer an information system and technical and other` `customer assistance that is necessary to enable customers to` `manage electricity use. The program administrator: (i) shall be` `selected and compensated by the electric utility, subject to` `Commission approval; (ii) shall have demonstrated technical` `and managerial competence in the development and` `administration of demand management programs; and (iii) may` `develop and implement risk management, energy efficiency, and` `other services related to energy use management for which the` `program administrator shall be compensated by participants in` `the program receiving such services. The electric utility shall` `provide the program administrator with all information and` `assistance necessary to perform the program administrator's` `duties, including, but not limited to, customer, account, and` `energy use data. The electric utility shall permit the program` `administrator to include inserts in residential customer bills` `2 times per year to assist with customer outreach and` `enrollment.` The program administrator shall submit an annual report to` `the electric utility no later than April 1 of each year` `describing the operation and results of the program, including` `information concerning the number and types of customers using` `real-time pricing, changes in customers' energy use patterns,` `an assessment of the value of the program to both participants` `and non-participants, and recommendations concerning` `modification of the program and the tariff or tariffs filed` `under subsection (b-5). This report shall be filed by the` `electric utility with the Commission within 30 days of receipt` `and shall be available to the public on the Commission's web` `site.` (b-20) The Commission shall monitor the performance of` `programs established pursuant to subsection (b-15) and shall` `order the termination or modification of a program if it` `determines that the program is not, after a reasonable period` `of time for development not to exceed 4 years, resulting in net` `benefits to the residential customers of the electric utility.` (b-25) An electric utility shall be entitled to recover` `reasonable costs incurred in complying with this Section,` `provided that recovery of the costs is fairly apportioned among` `its residential customers as provided in this subsection` `(b-25). The electric utility may apportion``greater``costs on the` `residential customers who elect real-time pricing, but may also` `impose some of the costs of real-time pricing on customers who` `do not elect real-time pricing``, provided that the Commission` `determines that the cost savings resulting from real-time` `pricing will exceed the costs imposed on customers for` `maintaining the program``.` (c) The electric utility's tariff or tariffs filed pursuant` `to this Section shall be subject to Article IX. (d) This Section does not apply to any electric utility` `providing service to 100,000 or fewer customers.` `(Source: P.A. 94-977, eff. 6-30-06.) (220 ILCS 5/16-107.5) Sec. 16-107.5.``Net electricity metering.` (a) The Legislature finds and declares that a program to` `provide net electricity metering, as defined in this Section,` `for eligible customers can encourage private investment in` `renewable energy resources, stimulate economic growth, enhance` `the continued diversification of Illinois' energy resource` `mix, and protect the Illinois environment. (b) As used in this Section, (i)``"community renewable` `generation project" shall have the meaning set forth in Section` `1-10 of the Illinois Power Agency Act; (ii)``"eligible customer"` `means a retail customer that owns or operates a solar, wind, or` `other eligible renewable electrical generating facility with a` `rated capacity of not more than 2,000 kilowatts that is located` `on the customer's premises and is intended primarily to offset` `the customer's own electrical requirements;``(iii) `(ii) `"electricity provider" means an electric utility or` `alternative retail electric supplier;``(iv) `(iii)``"eligible` `renewable electrical generating facility" means a generator` `that is interconnected under rules adopted by the Commission` `and is``powered by solar electric energy, wind, dedicated crops` `grown for electricity generation, agricultural residues,` `untreated and unadulterated wood waste, landscape trimmings,` `livestock manure, anaerobic digestion of livestock or food` `processing waste, fuel cells or microturbines powered by` `renewable fuels, or hydroelectric energy;``(v) `and (iv)``"net` `electricity metering" (or "net metering") means the` `measurement, during the billing period applicable to an` `eligible customer, of the net amount of electricity supplied by` `an electricity provider to the customer's premises or provided` `to the electricity provider by the customer``or subscriber; (vi)` `"subscriber" shall have the meaning as set forth in Section` `1-10 of the Illinois Power Agency Act; and (vii) "subscription"` `shall have the meaning set forth in Section 1-10 of the` `Illinois Power Agency Act``. (c) A net metering facility shall be equipped with metering` `equipment that can measure the flow of electricity in both` `directions at the same rate.` ``(1) For eligible customers whose electric service has` `not been declared competitive pursuant to Section 16-113 of` `this Act as of July 1, 2011 and whose electric delivery` `service is provided and measured on a kilowatt-hour basis` `and electric supply service is not provided based on hourly` `pricing, this shall typically be accomplished through use` `of a single, bi-directional meter. If the eligible` `customer's existing electric revenue meter does not meet` `this requirement, the electricity provider shall arrange` `for the local electric utility or a meter service provider` `to install and maintain a new revenue meter at the` `electricity provider's expense``, which may be the smart` `meter described by subsection (b) of Section 16-108.5 of` `this Act``.` ``(2) For eligible customers whose electric service has` `not been declared competitive pursuant to Section 16-113 of` `this Act as of July 1, 2011 and whose electric delivery` `service is provided and measured on a kilowatt demand basis` `and electric supply service is not provided based on hourly` `pricing, this shall typically be accomplished through use` `of a dual channel meter capable of measuring the flow of` `electricity both into and out of the customer's facility at` `the same rate and ratio. If such customer's existing` `electric revenue meter does not meet this requirement, then` `the electricity provider shall arrange for the local` `electric utility or a meter service provider to install and` `maintain a new revenue meter at the electricity provider's` `expense``, which may be the smart meter described by` `subsection (b) of Section 16-108.5 of this Act``.` ``(3) For all other eligible customers,``until such time` `as the local electric utility installs a smart meter, as` `described by subsection (b) of Section 16-108.5 of this` `Act,``the electricity provider may arrange for the local` `electric utility or a meter service provider to install and` `maintain metering equipment capable of measuring the flow` `of electricity both into and out of the customer's facility` `at the same rate and ratio, typically through the use of a` `dual channel meter. If the eligible customer's existing` `electric revenue meter does not meet this requirement, then` `the costs of installing such equipment shall be paid for by` `the customer.` (d) An electricity provider shall measure and charge or` `credit for the net electricity supplied to eligible customers` `or provided by eligible customers whose electric service has` `not been declared competitive pursuant to Section 16-113 of` `this `the``Act as of July 1, 2011 and whose electric delivery` `service is provided and measured on a kilowatt-hour basis and` `electric supply service is not provided based on hourly pricing` `in the following manner: ``(1) If the amount of electricity used by the customer` `during the billing period exceeds the amount of electricity` `produced by the customer, the electricity provider shall` `charge the customer for the net electricity supplied to and` `used by the customer as provided in subsection (e-5) of` `this Section. ``(2) If the amount of electricity produced by a customer` `during the billing period exceeds the amount of electricity` `used by the customer during that billing period, the` `electricity provider supplying that customer shall apply a` `1:1 kilowatt-hour credit to a subsequent bill for service` `to the customer for the net electricity supplied to the` `electricity provider. The electricity provider shall` `continue to carry over any excess kilowatt-hour credits` `earned and apply those credits to subsequent billing` `periods to offset any customer-generator consumption in` `those billing periods until all credits are used or until` `the end of the annualized period. ``(3) At the end of the year or annualized over the` `period that service is supplied by means of net metering,` `or in the event that the retail customer terminates service` `with the electricity provider prior to the end of the year` `or the annualized period, any remaining credits in the` `customer's account shall expire. (d-5) An electricity provider shall measure and charge or` `credit for the net electricity supplied to eligible customers` `or provided by eligible customers whose electric service has` `not been declared competitive pursuant to Section 16-113 of` `this Act as of July 1, 2011 and whose electric delivery service` `is provided and measured on a kilowatt-hour basis and electric` `supply service is provided based on hourly pricing in the` `following manner:` ``(1) If the amount of electricity used by the customer` `during any hourly period exceeds the amount of electricity` `produced by the customer, the electricity provider shall` `charge the customer for the net electricity supplied to and` `used by the customer according to the terms of the contract` `or tariff to which the same customer would be assigned to` `or be eligible for if the customer was not a net metering` `customer.` ``(2) If the amount of electricity produced by a customer` `during any hourly period exceeds the amount of electricity` `used by the customer during that hourly period, the energy` `provider shall apply a credit for the net kilowatt-hours` `produced in such period. The credit shall consist of an` `energy credit and a delivery service credit. The energy` `credit shall be valued at the same price per kilowatt-hour` `as the electric service provider would charge for` `kilowatt-hour energy sales during that same hourly period.` `The delivery credit shall be equal to the net` `kilowatt-hours produced in such hourly period times a` `credit that reflects all kilowatt-hour based charges in the` `customer's electric service rate, excluding energy` `charges.` (e) An electricity provider shall measure and charge or` `credit for the net electricity supplied to eligible customers` `whose electric service has not been declared competitive` `pursuant to Section 16-113 of this Act as of July 1, 2011 and` `whose electric delivery service is provided and measured on a` `kilowatt demand basis and electric supply service is not` `provided based on hourly pricing in the following manner:` ``(1) If the amount of electricity used by the customer` `during the billing period exceeds the amount of electricity` `produced by the customer, then the electricity provider` `shall charge the customer for the net electricity supplied` `to and used by the customer as provided in subsection (e-5)` `of this Section. The customer shall remain responsible for` `all taxes, fees, and utility delivery charges that would` `otherwise be applicable to the net amount of electricity` `used by the customer.` ``(2) If the amount of electricity produced by a customer` `during the billing period exceeds the amount of electricity` `used by the customer during that billing period, then the` `electricity provider supplying that customer shall apply a` `1:1 kilowatt-hour credit that reflects the kilowatt-hour` `based charges in the customer's electric service rate to a` `subsequent bill for service to the customer for the net` `electricity supplied to the electricity provider. The` `electricity provider shall continue to carry over any` `excess kilowatt-hour credits earned and apply those` `credits to subsequent billing periods to offset any` `customer-generator consumption in those billing periods` `until all credits are used or until the end of the` `annualized period.` ``(3) At the end of the year or annualized over the` `period that service is supplied by means of net metering,` `or in the event that the retail customer terminates service` `with the electricity provider prior to the end of the year` `or the annualized period, any remaining credits in the` `customer's account shall expire.` (e-5) An electricity provider shall provide electric` `service to eligible customers who utilize net metering at` `non-discriminatory rates that are identical, with respect to` `rate structure, retail rate components, and any monthly` `charges, to the rates that the customer would be charged if not` `a net metering customer. An electricity provider shall not` `charge net metering customers any fee or charge or require` `additional equipment, insurance, or any other requirements not` `specifically authorized by interconnection standards` `authorized by the Commission, unless the fee, charge, or other` `requirement would apply to other similarly situated customers` `who are not net metering customers. The customer will remain` `responsible for all taxes, fees, and utility delivery charges` `that would otherwise be applicable to the net amount of` `electricity used by the customer. Subsections (c) through (e)` `of this Section shall not be construed to prevent an` `arms-length agreement between an electricity provider and an` `eligible customer that sets forth different prices, terms, and` `conditions for the provision of net metering service,` `including, but not limited to, the provision of the appropriate` `metering equipment for non-residential customers. (f) Notwithstanding the requirements of subsections (c)` `through (e-5) of this Section, an electricity provider must` `require dual-channel metering for customers operating eligible` `renewable electrical generating facilities with a nameplate` `rating up to 2,000 kilowatts and to whom the provisions of` `neither subsection (d), (d-5), nor (e) of this Section apply.` `In such cases, electricity charges and credits shall be` `determined as follows:` ``(1) The electricity provider shall assess and the` `customer remains responsible for all taxes, fees, and` `utility delivery charges that would otherwise be` `applicable to the gross amount of kilowatt-hours supplied` `to the eligible customer by the electricity provider.` ``(2) Each month that service is supplied by means of` `dual-channel metering, the electricity provider shall` `compensate the eligible customer for any excess` `kilowatt-hour credits at the electricity provider's` `avoided cost of electricity supply over the monthly period` `or as otherwise specified by the terms of a power-purchase` `agreement negotiated between the customer and electricity` `provider.` ``(3) For all eligible net metering customers taking` `service from an electricity provider under contracts or` `tariffs employing``hourly or``time of use rates, any monthly` `consumption of electricity shall be calculated according` `to the terms of the contract or tariff to which the same` `customer would be assigned to or be eligible for if the` `customer was not a net metering customer. When those same` `customer-generators are net generators during any discrete` `hourly or``time of use period, the net kilowatt-hours` `produced shall be valued at the same price per` `kilowatt-hour as the electric service provider would` `charge for retail kilowatt-hour sales during that same time` `of use period.` (g) For purposes of federal and State laws providing` `renewable energy credits or greenhouse gas credits, the` `eligible customer shall be treated as owning and having title` `to the renewable energy attributes, renewable energy credits,` `and greenhouse gas emission credits related to any electricity` `produced by the qualified generating unit. The electricity` `provider may not condition participation in a net metering` `program on the signing over of a customer's renewable energy` `credits; provided, however, this subsection (g) shall not be` `construed to prevent an arms-length agreement between an` `electricity provider and an eligible customer that sets forth` `the ownership or title of the credits. (h) Within 120 days after the effective date of this` `amendatory Act of the 95th General Assembly, the Commission` `shall establish standards for net metering and, if the` `Commission has not already acted on its own initiative,` `standards for the interconnection of eligible renewable` `generating equipment to the utility system. The` `interconnection standards shall address any procedural` `barriers, delays, and administrative costs associated with the` `interconnection of customer-generation while ensuring the` `safety and reliability of the units and the electric utility` `system. The Commission shall consider the Institute of` `Electrical and Electronics Engineers (IEEE) Standard 1547 and` `the issues of (i) reasonable and fair fees and costs, (ii)` `clear timelines for major milestones in the interconnection` `process, (iii) nondiscriminatory terms of agreement, and (iv)` `any best practices for interconnection of distributed` `generation. (i) All electricity providers shall begin to offer net` `metering no later than April 1, 2008. (j) An electricity provider shall provide net metering to` `eligible customers until the load of its net metering customers` `equals 5% of the total peak demand supplied by that electricity` `provider during the previous year.``After such time as the load` `of the electricity provider's net metering customers equals 5%` `of the total peak demand supplied by that electricity provider` `during the previous year, eligible customers that begin taking` `net metering shall only be eligible for netting of energy. `Electricity providers are authorized to offer net metering` `beyond the 5% level if they so choose. `` (k) Each electricity provider shall maintain records and` `report annually to the Commission the total number of net` `metering customers served by the provider, as well as the type,` `capacity, and energy sources of the generating systems used by` `the net metering customers. Nothing in this Section shall limit` `the ability of an electricity provider to request the redaction` `of information deemed by the Commission to be confidential` `business information.``Each electricity provider shall notify` `the Commission when the total generating capacity of its net` `metering customers is equal to or in excess of the 5% cap` `specified in subsection (j) of this Section.` ``(l)``(1)``Notwithstanding the definition of "eligible` `customer" in item``(ii) `(i)``of subsection (b) of this` `Section, each electricity provider shall``consider whether` `to``allow``meter aggregation for the purposes of``net metering` `as set forth in this subsection (l) and for the following` `projects `on``:` `(A) `(1)``properties owned or leased by multiple` `customers that contribute to the operation of an` `eligible renewable electrical generating``facility` `through an ownership or leasehold interest of at least` `200 watts in such``facility, such as a community-owned` `wind project, a community-owned biomass project, a` `community-owned solar project, or a community methane` `digester processing livestock waste from multiple` `sources``, provided that the facility is also located` `within the utility's service territory``;``and `(B) `(2)``individual units, apartments, or` `properties``located in a single building that are``owned` `or leased by multiple customers and collectively` `served by a common eligible renewable electrical` `generating facility, such as an``office or``apartment` `building``, a shopping center or strip mall``served by` `photovoltaic panels on the roof``; and `. `(C) subscriptions to community renewable` `generation projects.` ``In addition, the nameplate capacity of the eligible` `renewable electric generating facility that serves the` `demand of the properties, units, or apartments identified` `in paragraphs (1) and (2) of this subsection (l) shall not` `exceed 2,000 kilowatts in nameplate capacity in total. Any` `eligible renewable electrical generating facility or` `community renewable generation project that is powered by` `photovoltaic electric energy and installed after the` `effective date of this amendatory Act of the 99th General` `Assembly must be installed by a qualified person in` `compliance with the requirements of Section 16-128A of the` `Public Utilities Act and any rules or regulations adopted` `thereunder.` ``(2) Notwithstanding anything to the contrary, an` `electricity provider shall provide credits for the` `electricity produced by the projects described in` `paragraph (1) of this subsection (l). The electricity` `provider shall provide credits at the subscriber's energy` `supply rate on the subscriber's monthly bill equal to the` `subscriber's share of the production of electricity from` `the project, as determined by paragraph (3) of this` `subsection (l). ``(3)``For the purposes of``facilitating net metering, the` `owner or operator of the eligible renewable electrical` `generating facility or community renewable generation` `project shall be responsible for determining the amount of` `the credit that each customer or subscriber participating` `in a project under this subsection (l) is to receive in the` `following manner: `this subsection (l), "meter aggregation"` `means the combination of reading and billing on a pro rata` `basis for the types of eligible customers described in this` `Section. `(A) The owner or operator shall, on a monthly` `basis, provide to the electric utility the` `kilowatthours of generation attributable to each of` `the utility's retail customers and subscribers` `participating in projects under this subsection (l) in` `accordance with the customer's or subscriber's share` `of the eligible renewable electric generating` `facility's or community renewable generation project's` `output of power and energy for such month. The owner or` `operator shall electronically transmit such` `calculations and associated documentation to the` `electric utility, in a format or method set forth in` `the applicable tariff, on a monthly basis so that the` `electric utility can reflect the monetary credits on` `customers' and subscribers' electric utility bills.` `The electric utility shall be permitted to revise its` `tariffs to implement the provisions of this amendatory` `Act of the 99th General Assembly. The owner or operator` `shall separately provide the electric utility with the` `documentation detailing the calculations supporting` `the credit in the manner set forth in the applicable` `tariff. `(B) For those participating customers and` `subscribers who receive their energy supply from an` `alternative retail electric supplier, the electric` `utility shall remit to the applicable alternative` `retail electric supplier the information provided` `under subparagraph (A) of this paragraph (3) for such` `customers and subscribers in a manner set forth in such` `alternative retail electric supplier's net metering` `program, or as otherwise agreed between the utility and` `the alternative retail electric supplier. The` `alternative retail electric supplier shall then submit` `to the utility the amount of the charges for power and` `energy to be applied to such customers and subscribers,` `including the amount of the credit associated with net` `metering. `(C) A participating customer or subscriber may` `provide authorization as required by applicable law` `that directs the electric utility to submit` `information to the owner or operator of the eligible` `renewable electrical generating facility or community` `renewable generation project to which the customer or` `subscriber has an ownership or leasehold interest or a` `subscription. Such information shall be limited to the` `components of the net metering credit calculated under` `this subsection (l), including the bill credit rate,` `total kilowatthours, and total monetary credit value` `applied to the customer's or subscriber's bill for the` `monthly billing period. (l-5) Within 90 days after the effective date of this` `amendatory Act of the 99th General Assembly, each electric` `utility subject to this Section shall file a tariff to` `implement the provisions of subsection (l) of this Section,` `which shall, consistent with the provisions of subsection (l),` `describe the terms and conditions under which owners or` `operators of qualifying properties, units, or apartments may` `participate in net metering. The Commission shall approve, or` `approve with modification, the tariff within 120 days after the` `effective date of this amendatory Act of the 99th General` `Assembly. (m) Nothing in this Section shall affect the right of an` `electricity provider to continue to provide, or the right of a` `retail customer to continue to receive service pursuant to a` `contract for electric service between the electricity provider` `and the retail customer in accordance with the prices, terms,` `and conditions provided for in that contract. Either the` `electricity provider or the customer may require compliance` `with the prices, terms, and conditions of the contract.` (n) At such time, if any, that the load of the electricity` `provider's net metering customers equals 5% of the total peak` `demand supplied by that electricity provider during the` `previous year, as specified in subsection (j) of this Section,` `the net metering services described in subsections (d), (d-5),` `(e), (e-5), and (f) of this Section shall no longer be offered,` `except as to those retail customers that are receiving net` `metering service under these subsections at the time the net` `metering services under those subsections are no longer` `offered. Those retail customers that begin taking net metering` `service after the date that net metering services are no longer` `offered under such subsections shall be subject to the` `provisions set forth in the following paragraphs (1) through` `(3) of this subsection (n):` ``(1) An electricity provider shall charge or credit for` `the net electricity supplied to eligible customers or` `provided by eligible customers whose electric supply` `service is not provided based on hourly pricing in the` `following manner:` `(A) If the amount of electricity used by the` `customer during the billing period exceeds the amount` `of electricity produced by the customer, then the` `electricity provider shall charge the customer for the` `net kilowatt-hour based electricity charges reflected` `in the customer's electric service rate supplied to and` `used by the customer as provided in paragraph (3) of` `this subsection (n).` `(B) If the amount of electricity produced by a` `customer during the billing period exceeds the amount` `of electricity used by the customer during that billing` `period, then the electricity provider supplying that` `customer shall apply a 1:1 kilowatt-hour energy credit` `that reflects the kilowatt-hour based energy charges` `in the customer's electric service rate to a subsequent` `bill for service to the customer for the net` `electricity supplied to the electricity provider. The` `electricity provider shall continue to carry over any` `excess kilowatt-hour energy credits earned and apply` `those credits to subsequent billing periods to offset` `any customer-generator consumption in those billing` `periods until all credits are used or until the end of` `the annualized period.` `(C) At the end of the year or annualized over the` `period that service is supplied by means of net` `metering, or in the event that the retail customer` `terminates service with the electricity provider prior` `to the end of the year or the annualized period, any` `remaining credits in the customer's account shall` `expire.` ``(2) An electricity provider shall charge or credit for` `the net electricity supplied to eligible customers or` `provided by eligible customers whose electric supply` `service is provided based on hourly pricing in the` `following manner:` `(A) If the amount of electricity used by the` `customer during any hourly period exceeds the amount of` `electricity produced by the customer, then the` `electricity provider shall charge the customer for the` `net electricity supplied to and used by the customer as` `provided in paragraph (3) of this subsection (n).` `(B) If the amount of electricity produced by a` `customer during any hourly period exceeds the amount of` `electricity used by the customer during that hourly` `period, the energy provider shall calculate an energy` `credit for the net kilowatt-hours produced in such` `period. The value of the energy credit shall be` `calculated using the same price per kilowatt-hour as` `the electric service provider would charge for` `kilowatt-hour energy sales during that same hourly` `period.` ``(3) An electricity provider shall provide electric` `service to eligible customers who utilize net metering at` `non-discriminatory rates that are identical, with respect` `to rate structure, retail rate components, and any monthly` `charges, to the rates that the customer would be charged if` `not a net metering customer. An electricity provider shall` `charge the customer for the net electricity supplied to and` `used by the customer according to the terms of the contract` `or tariff to which the same customer would be assigned or` `be eligible for if the customer was not a net metering` `customer. An electricity provider shall not charge net` `metering customers any fee or charge or require additional` `equipment, insurance, or any other requirements not` `specifically authorized by interconnection standards` `authorized by the Commission, unless the fee, charge, or` `other requirement would apply to other similarly situated` `customers who are not net metering customers. The charge or` `credit that the customer receives for net electricity shall` `be at a rate equal to the customer's energy supply rate.` `The customer remains responsible for the gross amount of` `delivery services charges, supply-related charges that are` `kilowatt based, and all taxes and fees related to such` `charges. The customer also remains responsible for all` `taxes and fees that would otherwise be applicable to the` `net amount of electricity used by the customer. Paragraphs` `(1) and (2) of this subsection (n) shall not be construed` `to prevent an arms-length agreement between an electricity` `provider and an eligible customer that sets forth different` `prices, terms, and conditions for the provision of net` `metering service, including, but not limited to, the` `provision of the appropriate metering equipment for` `non-residential customers. Nothing in this paragraph (3)` `shall be interpreted to mandate that a utility that is only` `required to provide delivery services to a given customer` `must also sell electricity to such customer. `` `(Source: P.A. 97-616, eff. 10-26-11; 97-646, eff. 12-30-11;` `97-824, eff. 7-18-12.)` (220 ILCS 5/16-107.6 new)` Sec. 16-107.6.``Distributed generation rebate.` (a) In this Section:` "Smart inverter" means a device that converts direct` `current into alternating current and can autonomously` `contribute to grid support during excursions from normal` `operating voltage and frequency conditions by providing each of` `the following: dynamic reactive and real power support, voltage` `and frequency ride-through, ramp rate controls, communication` `systems with ability to accept external commands, and other` `functions from the electric utility.` "Subscriber" has the meaning set forth in Section 1-10 of` `the Illinois Power Agency Act.` "Subscription" has the meaning set forth in Section 1-10 of` `the Illinois Power Agency Act.` "Threshold date" means the date on which the load of an` `electricity provider's net metering customers equals 5% of the` `total peak demand supplied by that electricity provider during` `the previous year, as specified under subsection (j) of Section` `16-107.5 of this Act.` (b) An electric utility that serves more than 200,000` `customers in the State shall file a petition with the` `Commission requesting approval of the utility's tariff to` `provide a rebate to a retail customer who owns or operates` `distributed generation that meets the following criteria:` ``(1) has a nameplate generating capacity no greater than` `2,000 kilowatts and is primarily used to offset that` `customer's electricity load;` ``(2) is located on the customer's premises, for the` `customer's own use, and not for commercial use or sales,` `including, but not limited to, wholesale sales of electric` `power and energy;` ``(3) is located in the electric utility's service` `territory; and` ``(4) is interconnected under rules adopted by the` `Commission by means of the inverter or smart inverter` `required by this Section, as applicable.` For purposes of this Section, "distributed generation"` `shall satisfy the definition of distributed renewable energy` `generation device set forth in Section 1-10 of the Illinois` `Power Agency Act to the extent such definition is consistent` `with the requirements of this Section. In addition, any new photovoltaic distributed generation` `that is installed after the effective date of this amendatory` `Act of the 99th General Assembly must be installed by a` `qualified person, as defined by subsection (i) of Section 1-56` `of the Illinois Power Agency Act. The tariff shall provide that the utility shall be` `permitted to operate and control the smart inverter associated` `with the distributed generation that is the subject of the` `rebate for the purpose of preserving reliability during` `distribution system reliability events and shall address the` `terms and conditions of the operation and the compensation` `associated with the operation. Nothing in this Section shall` `negate or supersede Institute of Electrical and Electronics` `Engineers interconnection requirements or standards or other` `similar standards or requirements. The tariff shall also` `provide for additional uses of the smart inverter that shall be` `separately compensated and which may include, but are not` `limited to, voltage and VAR support, regulation, and other grid` `services. As part of the proceeding described in subsection (e)` `of this Section, the Commission shall review and determine` `whether smart inverters can provide any additional uses or` `services. If the Commission determines that an additional use` `or service would be beneficial, the Commission shall determine` `the terms and conditions of the operation and how the use or` `service should be separately compensated.` (c) The proposed tariff authorized by subsection (b) of` `this Section shall include the following participation terms` `and formulae to calculate the value of the rebates to be` `applied under this Section for distributed generation that` `satisfies the criteria set forth in subsection (b) of this` `Section:` ``(1) Until the utility files its tariff or tariffs to` `place into effect the rebate values established by the` `Commission under subsection (e) of this Section,` `non-residential customers that are taking service under a` `net metering program offered by an electricity provider` `under the terms of Section 16-107.5 of this Act may apply` `for a rebate as provided for in this Section. The value of` `the rebate shall be $250 per kilowatt of nameplate` `generating capacity, measured as nominal DC power output,` `of a non-residential customer's distributed generation.` ``(2) After the utility's tariff or tariffs setting the` `new rebate values established under subsection (d) of this` `Section take effect, retail customers may, as applicable,` `make the following elections:` `(A) Residential customers that are taking service` `under a net metering program offered by an electricity` `provider under the terms of Section 16-107.5 of this` `Act on the threshold date may elect to either continue` `to take such service under the terms of such program as` `in effect on such threshold date for the useful life of` `the customer's eligible renewable electric generating` `facility as defined in such Section, or file an` `application to receive a rebate under the terms of this` `Section, provided that such application must be` `submitted within 6 months after the effective date of` `the tariff approved under subsection (d) of this` `Section. The value of the rebate shall be the amount` `established by the Commission and reflected in the` `utility's tariff pursuant to subsection (e) of this` `Section.` `(B) Non-residential customers that are taking` `service under a net metering program offered by an` `electricity provider under the terms of Section` `16-107.5 of this Act on the threshold date may apply` `for a rebate as provided for in this Section. The value` `of the rebate shall be the amount established by the` `Commission and reflected in the utility's tariff` `pursuant to subsection (e) of this Section.` ``(3) Upon approval of a rebate application submitted` `under this subsection (c), the retail customer shall no` `longer be entitled to receive any delivery service credits` `for the excess electricity generated by its facility and` `shall be subject to the provisions of subsection (n) of` `Section 16-107.5 of this Act.` ``(4) To be eligible for a rebate described in this` `subsection (c), customers who begin taking service after` `the effective date of this amendatory Act of the 99th` `General Assembly under a net metering program offered by an` `electricity provider under the terms of Section 16-107.5 of` `this Act must have a smart inverter associated with the` `customer's distributed generation.` (d) The Commission shall review the proposed tariff` `submitted under subsections (b) and (c) of this Section and may` `make changes to the tariff that are consistent with this` `Section and with the Commission's authority under Article IX of` `this Act, subject to notice and hearing. Following notice and` `hearing, the Commission shall issue an order approving, or` `approving with modification, such tariff no later than 240 days` `after the utility files its tariff.` (e) When the total generating capacity of the electricity` `provider's net metering customers is equal to 3%, the` `Commission shall open an investigation into an annual process` `and formula for calculating the value of rebates for the retail` `customers described in subsections (b) and (f) of this Section` `that submit rebate applications after the threshold date for an` `electric utility that elected to file a tariff pursuant to this` `Section. The investigation shall include diverse sets of` `stakeholders, calculations for valuing distributed energy` `resource benefits to the grid based on best practices, and` `assessments of present and future technological capabilities` `of distributed energy resources. The value of such rebates` `shall reflect the value of the distributed generation to the` `distribution system at the location at which it is` `interconnected, taking into account the geographic,` `time-based, and performance-based benefits, as well as` `technological capabilities and present and future grid needs.` `No later than 10 days after the Commission enters its final` `order under this subsection (e), the utility shall file its` `tariff or tariffs in compliance with the order, and the` `Commission shall approve, or approve with modification, the` `tariff or tariffs within 45 days after the utility's filing.` `For those rebate applications filed after the threshold date` `but before the utility's tariff or tariffs filed pursuant to` `this subsection (e) take effect, the value of the rebate shall` `remain at the value established in subsection (c) of this` `Section until the tariff is approved.` (f) Notwithstanding any provision of this Act to the` `contrary, the owner, developer, or subscriber of a generation` `facility that is part of a net metering program provided under` `subsection (l) of Section 16-107.5 shall also be eligible to` `apply for the rebate described in this Section. A subscriber to` `the generation facility may apply for a rebate in the amount of` `the subscriber's subscription only if the owner, developer, or` `previous subscriber to the same panel or panels has not already` `submitted an application, and, regardless of whether the` `subscriber is a residential or non-residential customer, may be` `allowed the amount identified in paragraph (1) of subsection` `(c) or in subsection (e) of this Section applicable to such` `customer on the date that the application is submitted. An` `application for a rebate for a portion of a project described` `in this subsection (f) may be submitted at or after the time` `that a related request for net metering is made.` (g) No later than 60 days after the utility receives an` `application for a rebate under its tariff approved under` `subsection (d) or (e) of this Section, the utility shall issue` `a rebate to the applicant under the terms of the tariff. In the` `event the application is incomplete or the utility is otherwise` `unable to calculate the payment based on the information` `provided by the owner, the utility shall issue the payment no` `later than 60 days after the application is complete or all` `requested information is received.` (h) An electric utility shall recover from its retail` `customers all of the costs of the rebates made under a tariff` `or tariffs placed into effect under this Section, including,` `but not limited to, the value of the rebates and all costs` `incurred by the utility to comply with and implement this` `Section, consistent with the following provisions:` ``(1) The utility shall defer the full amount of its` `costs incurred under this Section as a regulatory asset.` `The total costs deferred as a regulatory asset shall be` `amortized over a 15-year period. The unamortized balance` `shall be recognized as of December 31 for a given year. The` `utility shall also earn a return on the total of the` `unamortized balance of the regulatory assets, less any` `deferred taxes related to the unamortized balance, at an` `annual rate equal to the utility's weighted average cost of` `capital that includes, based on a year-end capital` `structure, the utility's actual cost of debt for the` `applicable calendar year and a cost of equity, which shall` `be calculated as the sum of (i) the average for the` `applicable calendar year of the monthly average yields of` `30-year U.S. Treasury bonds published by the Board of` `Governors of the Federal Reserve System in its weekly H.15` `Statistical Release or successor publication; and (ii) 580` `basis points, including a revenue conversion factor` `calculated to recover or refund all additional income taxes` `that may be payable or receivable as a result of that` `return.` ``When an electric utility creates a regulatory asset` `under the provisions of this Section, the costs are` `recovered over a period during which customers also receive` `a benefit, which is in the public interest. Accordingly, it` `is the intent of the General Assembly that an electric` `utility that elects to create a regulatory asset under the` `provisions of this Section shall recover all of the` `associated costs, including, but not limited to, its cost` `of capital as set forth in this Section. After the` `Commission has approved the prudence and reasonableness of` `the costs that comprise the regulatory asset, the electric` `utility shall be permitted to recover all such costs, and` `the value and recoverability through rates of the` `associated regulatory asset shall not be limited, altered,` `impaired, or reduced. To enable the financing of the` `incremental capital expenditures, including regulatory` `assets, for electric utilities that serve less than` `3,000,000 retail customers but more than 500,000 retail` `customers in the State, the utility's actual year-end` `capital structure that includes a common equity ratio,` `excluding goodwill, of up to and including 50% of the total` `capital structure shall be deemed reasonable and used to` `set rates.` ``(2) The utility, at its election, may recover all of` `the costs it incurs under this Section as part of a filing` `for a general increase in rates under Article IX of this` `Act, as part of an annual filing to update a` `performance-based formula rate under subsection (d) of` `Section 16-108.5 of this Act, or through an automatic` `adjustment clause tariff, provided that nothing in this` `paragraph (2) permits the double recovery of such costs` `from customers. If the utility elects to recover the costs` `it incurs under this Section through an automatic` `adjustment clause tariff, the utility may file its proposed` `tariff together with the tariff it files under subsection` `(b) of this Section or at a later time. The proposed tariff` `shall provide for an annual reconciliation, less any` `deferred taxes related to the reconciliation, with` `interest at an annual rate of return equal to the utility's` `weighted average cost of capital as calculated under` `paragraph (1) of this subsection (h), including a revenue` `conversion factor calculated to recover or refund all` `additional income taxes that may be payable or receivable` `as a result of that return, of the revenue requirement` `reflected in rates for each calendar year, beginning with` `the calendar year in which the utility files its automatic` `adjustment clause tariff under this subsection (h), with` `what the revenue requirement would have been had the actual` `cost information for the applicable calendar year been` `available at the filing date. The Commission shall review` `the proposed tariff and may make changes to the tariff that` `are consistent with this Section and with the Commission's` `authority under Article IX of this Act, subject to notice` `and hearing. Following notice and hearing, the Commission` `shall issue an order approving, or approving with` `modification, such tariff no later than 240 days after the` `utility files its tariff.` (i) No later than 90 days after the Commission enters an` `order, or order on rehearing, whichever is later, approving an` `electric utility's proposed tariff under subsection (d) of this` `Section, the electric utility shall provide notice of the` `availability of rebates under this Section. Subsequent to the` `utility's notice, any entity that offers in the State, for sale` `or lease, distributed generation and estimates the dollar` `saving attributable to such distributed generation shall` `provide estimates based on both delivery service credits and` `the rebates available under this Section.` (220 ILCS 5/16-108) ` Sec. 16-108.``Recovery of costs associated with the` `provision of delivery``and other``services.` (a) An electric utility shall file a delivery services` `tariff with the Commission at least 210 days prior to the date` `that it is required to begin offering such services pursuant to` `this Act. An electric utility shall provide the components of` `delivery services that are subject to the jurisdiction of the` `Federal Energy Regulatory Commission at the same prices, terms` `and conditions set forth in its applicable tariff as approved` `or allowed into effect by that Commission. The Commission shall` `otherwise have the authority pursuant to Article IX to review,` `approve, and modify the prices, terms and conditions of those` `components of delivery services not subject to the jurisdiction` `of the Federal Energy Regulatory Commission, including the` `authority to determine the extent to which such delivery` `services should be offered on an unbundled basis. In making any` `such determination the Commission shall consider, at a minimum,` `the effect of additional unbundling on (i) the objective of` `just and reasonable rates, (ii) electric utility employees, and` `(iii) the development of competitive markets for electric` `energy services in Illinois. (b) The Commission shall enter an order approving, or` `approving as modified, the delivery services tariff no later` `than 30 days prior to the date on which the electric utility` `must commence offering such services. The Commission may` `subsequently modify such tariff pursuant to this Act. (c) The electric utility's tariffs shall define the classes` `of its customers for purposes of delivery services charges.` `Delivery services shall be priced and made available to all` `retail customers electing delivery services in each such class` `on a nondiscriminatory basis regardless of whether the retail` `customer chooses the electric utility, an affiliate of the` `electric utility, or another entity as its supplier of electric` `power and energy. Charges for delivery services shall be cost` `based, and shall allow the electric utility to recover the` `costs of providing delivery services through its charges to its` `delivery service customers that use the facilities and services` `associated with such costs. Such costs shall include the costs` `of owning, operating and maintaining transmission and` `distribution facilities. The Commission shall also be` `authorized to consider whether, and if so to what extent, the` `following costs are appropriately included in the electric` `utility's delivery services rates: (i) the costs of that` `portion of generation facilities used for the production and` `absorption of reactive power in order that retail customers` `located in the electric utility's service area can receive` `electric power and energy from suppliers other than the` `electric utility, and (ii) the costs associated with the use` `and redispatch of generation facilities to mitigate` `constraints on the transmission or distribution system in order` `that retail customers located in the electric utility's service` `area can receive electric power and energy from suppliers other` `than the electric utility. Nothing in this subsection shall be` `construed as directing the Commission to allocate any of the` `costs described in (i) or (ii) that are found to be` `appropriately included in the electric utility's delivery` `services rates to any particular customer group or geographic` `area in setting delivery services rates. (d) The Commission shall establish charges, terms and` `conditions for delivery services that are just and reasonable` `and shall take into account customer impacts when establishing` `such charges. In establishing charges, terms and conditions for` `delivery services, the Commission shall take into account` `voltage level differences. A retail customer shall have the` `option to request to purchase electric service at any delivery` `service voltage reasonably and technically feasible from the` `electric facilities serving that customer's premises provided` `that there are no significant adverse impacts upon system` `reliability or system efficiency. A retail customer shall also` `have the option to request to purchase electric service at any` `point of delivery that is reasonably and technically feasible` `provided that there are no significant adverse impacts on` `system reliability or efficiency. Such requests shall not be` `unreasonably denied. (e) Electric utilities shall recover the costs of` `installing, operating or maintaining facilities for the` `particular benefit of one or more delivery services customers,` `including without limitation any costs incurred in complying` `with a customer's request to be served at a different voltage` `level, directly from the retail customer or customers for whose` `benefit the costs were incurred, to the extent such costs are` `not recovered through the charges referred to in subsections` `(c) and (d) of this Section. (f) An electric utility shall be entitled but not required` `to implement transition charges in conjunction with the` `offering of delivery services pursuant to Section 16-104. If an` `electric utility implements transition charges, it shall` `implement such charges for all delivery services customers and` `for all customers described in subsection (h), but shall not` `implement transition charges for power and energy that a retail` `customer takes from cogeneration or self-generation facilities` `located on that retail customer's premises, if such facilities` `meet the following criteria: `` ``(i) the cogeneration or self-generation facilities` `serve a single retail customer and are located on that` `retail customer's premises (for purposes of this` `subparagraph and subparagraph (ii), an industrial or` `manufacturing retail customer and a third party contractor` `that is served by such industrial or manufacturing customer` `through such retail customer's own electrical distribution` `facilities under the circumstances described in subsection` `(vi) of the definition of "alternative retail electric` `supplier" set forth in Section 16-102, shall be considered` `a single retail customer); `` ``(ii) the cogeneration or self-generation facilities` `either (A) are sized pursuant to generally accepted` `engineering standards for the retail customer's electrical` `load at that premises (taking into account standby or other` `reliability considerations related to that retail` `customer's operations at that site) or (B) if the facility` `is a cogeneration facility located on the retail customer's` `premises, the retail customer is the thermal host for that` `facility and the facility has been designed to meet that` `retail customer's thermal energy requirements resulting in` `electrical output beyond that retail customer's electrical` `demand at that premises, comply with the operating and` `efficiency standards applicable to "qualifying facilities"` `specified in title 18 Code of Federal Regulations Section` `292.205 as in effect on the effective date of this` `amendatory Act of 1999; `` ``(iii) the retail customer on whose premises the` `facilities are located either has an exclusive right to` `receive, and corresponding obligation to pay for, all of` `the electrical capacity of the facility, or in the case of` `a cogeneration facility that has been designed to meet the` `retail customer's thermal energy requirements at that` `premises, an identified amount of the electrical capacity` `of the facility, over a minimum 5-year period; and `` ``(iv) if the cogeneration facility is sized for the` `retail customer's thermal load at that premises but exceeds` `the electrical load, any sales of excess power or energy` `are made only at wholesale, are subject to the jurisdiction` `of the Federal Energy Regulatory Commission, and are not` `for the purpose of circumventing the provisions of this` `subsection (f). `If a generation facility located at a retail customer's` `premises does not meet the above criteria, an electric utility` `implementing transition charges shall implement a transition` `charge until December 31, 2006 for any power and energy taken` `by such retail customer from such facility as if such power and` `energy had been delivered by the electric utility. Provided,` `however, that an industrial retail customer that is taking` `power from a generation facility that does not meet the above` `criteria but that is located on such customer's premises will` `not be subject to a transition charge for the power and energy` `taken by such retail customer from such generation facility if` `the facility does not serve any other retail customer and` `either was installed on behalf of the customer and for its own` `use prior to January 1, 1997, or is both predominantly fueled` `by byproducts of such customer's manufacturing process at such` `premises and sells or offers an average of 300 megawatts or` `more of electricity produced from such generation facility into` `the wholesale market. Such charges shall be calculated as` `provided in Section 16-102, and shall be collected on each` `kilowatt-hour delivered under a delivery services tariff to a` `retail customer from the date the customer first takes delivery` `services until December 31, 2006 except as provided in` `subsection (h) of this Section. Provided, however, that an` `electric utility, other than an electric utility providing` `service to at least 1,000,000 customers in this State on` `January 1, 1999, shall be entitled to petition for entry of an` `order by the Commission authorizing the electric utility to` `implement transition charges for an additional period ending no` `later than December 31, 2008. The electric utility shall file` `its petition with supporting evidence no earlier than 16` `months, and no later than 12 months, prior to December 31,` `2006. The Commission shall hold a hearing on the electric` `utility's petition and shall enter its order no later than 8` `months after the petition is filed. The Commission shall` `determine whether and to what extent the electric utility shall` `be authorized to implement transition charges for an additional` `period. The Commission may authorize the electric utility to` `implement transition charges for some or all of the additional` `period, and shall determine the mitigation factors to be used` `in implementing such transition charges; provided, that the` `Commission shall not authorize mitigation factors less than` `110% of those in effect during the 12 months ended December 31,` `2006. In making its determination, the Commission shall` `consider the following factors: the necessity to implement` `transition charges for an additional period in order to` `maintain the financial integrity of the electric utility; the` `prudence of the electric utility's actions in reducing its` `costs since the effective date of this amendatory Act of 1997;` `the ability of the electric utility to provide safe, adequate` `and reliable service to retail customers in its service area;` `and the impact on competition of allowing the electric utility` `to implement transition charges for the additional period. (g) The electric utility shall file tariffs that establish` `the transition charges to be paid by each class of customers to` `the electric utility in conjunction with the provision of` `delivery services. The electric utility's tariffs shall define` `the classes of its customers for purposes of calculating` `transition charges. The electric utility's tariffs shall` `provide for the calculation of transition charges on a` `customer-specific basis for any retail customer whose average` `monthly maximum electrical demand on the electric utility's` `system during the 6 months with the customer's highest monthly` `maximum electrical demands equals or exceeds 3.0 megawatts for` `electric utilities having more than 1,000,000 customers, and` `for other electric utilities for any customer that has an` `average monthly maximum electrical demand on the electric` `utility's system of one megawatt or more, and (A) for which` `there exists data on the customer's usage during the 3 years` `preceding the date that the customer became eligible to take` `delivery services, or (B) for which there does not exist data` `on the customer's usage during the 3 years preceding the date` `that the customer became eligible to take delivery services, if` `in the electric utility's reasonable judgment there exists` `comparable usage information or a sufficient basis to develop` `such information, and further provided that the electric` `utility can require customers for which an individual` `calculation is made to sign contracts that set forth the` `transition charges to be paid by the customer to the electric` `utility pursuant to the tariff. (h) An electric utility shall also be entitled to file` `tariffs that allow it to collect transition charges from retail` `customers in the electric utility's service area that do not` `take delivery services but that take electric power or energy` `from an alternative retail electric supplier or from an` `electric utility other than the electric utility in whose` `service area the customer is located. Such charges shall be` `calculated, in accordance with the definition of transition` `charges in Section 16-102, for the period of time that the` `customer would be obligated to pay transition charges if it` `were taking delivery services, except that no deduction for` `delivery services revenues shall be made in such calculation,` `and usage data from the customer's class shall be used where` `historical usage data is not available for the individual` `customer. The customer shall be obligated to pay such charges` `on a lump sum basis on or before the date on which the customer` `commences to take service from the alternative retail electric` `supplier or other electric utility, provided, that the electric` `utility in whose service area the customer is located shall` `offer the customer the option of signing a contract pursuant to` `which the customer pays such charges ratably over the period in` `which the charges would otherwise have applied. (i) An electric utility shall be entitled to add to the` `bills of delivery services customers charges pursuant to` `Sections 9-221, 9-222 (except as provided in Section 9-222.1),` `and Section 16-114 of this Act, Section 5-5 of the Electricity` `Infrastructure Maintenance Fee Law, Section 6-5 of the` `Renewable Energy, Energy Efficiency, and Coal Resources` `Development Law of 1997, and Section 13 of the Energy` `Assistance Act. (j) If a retail customer that obtains electric power and` `energy from cogeneration or self-generation facilities` `installed for its own use on or before January 1, 1997,` `subsequently takes service from an alternative retail electric` `supplier or an electric utility other than the electric utility` `in whose service area the customer is located for any portion` `of the customer's electric power and energy requirements` `formerly obtained from those facilities (including that amount` `purchased from the utility in lieu of such generation and not` `as standby power purchases, under a cogeneration displacement` `tariff in effect as of the effective date of this amendatory` `Act of 1997), the transition charges otherwise applicable` `pursuant to subsections (f), (g), or (h) of this Section shall` `not be applicable in any year to that portion of the customer's` `electric power and energy requirements formerly obtained from` `those facilities, provided, that for purposes of this` `subsection (j), such portion shall not exceed the average` `number of kilowatt-hours per year obtained from the` `cogeneration or self-generation facilities during the 3 years` `prior to the date on which the customer became eligible for` `delivery services, except as provided in subsection (f) of` `Section 16-110. (k) The electric utility shall be entitled to recover` `through tariffed charges all of the costs associated with the` `purchase of zero emission credits from zero emission facilities` `to meet the requirements of subsection (d-5) of Section 1-75 of` `the Illinois Power Agency Act. Such costs shall include the` `costs of procuring the zero emission credits, as well as the` `reasonable costs that the utility incurs as part of the` `procurement processes and to implement and comply with plans` `and processes approved by the Commission under such subsection` `(d-5). The costs shall be allocated across all retail customers` `through a single, uniform cents per kilowatt-hour charge` `applicable to all retail customers, which shall appear as a` `separate line item on each customer's bill. Beginning June 1,` `2017, the electric utility shall be entitled to recover through` `tariffed charges all of the costs associated with the purchase` `of renewable energy resources to meet the 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 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 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` `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 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` `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 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` `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` `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 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. 91-50, eff. 6-30-99; 92-690, eff. 7-18-02.) (220 ILCS 5/16-108.5)` Sec. 16-108.5.``Infrastructure investment and` `modernization; regulatory reform.` (a) (Blank).` (b) For purposes of this Section, "participating utility"` `means an electric utility or a combination utility serving more` `than 1,000,000 customers in Illinois that voluntarily elects` `and commits to undertake (i) the infrastructure investment` `program consisting of the commitments and obligations` `described in this subsection (b) and (ii) the customer` `assistance program consisting of the commitments and` `obligations described in subsection (b-10) of this Section,` `notwithstanding any other provisions of this Act and without` `obtaining any approvals from the Commission or any other agency` `other than as set forth in this Section, regardless of whether` `any such approval would otherwise be required. "Combination` `utility" means a utility that, as of January 1, 2011, provided` `electric service to at least one million retail customers in` `Illinois and gas service to at least 500,000 retail customers` `in Illinois. A participating utility shall recover the` `expenditures made under the infrastructure investment program` `through the ratemaking process, including, but not limited to,` `the performance-based formula rate and process set forth in` `this Section.` During the infrastructure investment program's peak` `program year, a participating utility other than a combination` `utility shall create 2,000 full-time equivalent jobs in` `Illinois, and a participating utility that is a combination` `utility shall create 450 full-time equivalent jobs in Illinois` `related to the provision of electric service. These jobs shall` `include direct jobs, contractor positions, and induced jobs,` `but shall not include any portion of a job commitment, not` `specifically contingent on an amendatory Act of the 97th` `General Assembly becoming law, between a participating utility` `and a labor union that existed on December 30, 2011 (the` `effective date of Public Act 97-646) and that has not yet been` `fulfilled. A portion of the full-time equivalent jobs created` `by each participating utility shall include incremental` `personnel hired subsequent to December 30, 2011 (the effective` `date of Public Act 97-646). For purposes of this Section, "peak` `program year" means the consecutive 12-month period with the` `highest number of full-time equivalent jobs that occurs between` `the beginning of investment year 2 and the end of investment` `year 4.` A participating utility shall meet one of the following` `commitments, as applicable:` ``(1) Beginning no later than 180 days after a` `participating utility other than a combination utility` `files a performance-based formula rate tariff pursuant to` `subsection (c) of this Section, or, beginning no later than` `January 1, 2012 if such utility files such` `performance-based formula rate tariff within 14 days of` `October 26, 2011 (the effective date of Public Act 97-616),` `the participating utility shall, except as provided in` `subsection (b-5):` `(A) over a 5-year period, invest an estimated` `$1,300,000,000 in electric system upgrades,` `modernization projects, and training facilities,` `including, but not limited to:` (i) distribution infrastructure improvements` `totaling an estimated $1,000,000,000, including` `underground residential distribution cable` `injection and replacement and mainline cable` `system refurbishment and replacement projects;` (ii) training facility construction or upgrade` `projects totaling an estimated $10,000,000,` `provided that, at a minimum, one such facility` `shall be located in a municipality having a` `population of more than 2 million residents and one` `such facility shall be located in a municipality` `having a population of more than 150,000 residents` `but fewer than 170,000 residents; any such new` `facility located in a municipality having a` `population of more than 2 million residents must be` `designed for the purpose of obtaining, and the` `owner of the facility shall apply for,` `certification under the United States Green` `Building Council's Leadership in Energy Efficiency` `Design Green Building Rating System;` (iii) wood pole inspection, treatment, and` `replacement programs;` (iv) an estimated $200,000,000 for reducing` `the susceptibility of certain circuits to` `storm-related damage, including, but not limited` `to, high winds, thunderstorms, and ice storms;` `improvements may include, but are not limited to,` `overhead to underground conversion and other` `engineered outcomes for circuits; the` `participating utility shall prioritize the` `selection of circuits based on each circuit's` `historical susceptibility to storm-related damage` `and the ability to provide the greatest customer` `benefit upon completion of the improvements; to be` `eligible for improvement, the participating` `utility's ability to maintain proper tree` `clearances surrounding the overhead circuit must` `not have been impeded by third parties; and` `(B) over a 10-year period, invest an estimated` `$1,300,000,000 to upgrade and modernize its` `transmission and distribution infrastructure and in` `Smart Grid electric system upgrades, including, but` `not limited to:` (i) additional smart meters;` (ii) distribution automation;` (iii) associated cyber secure data` `communication network; and` (iv) substation micro-processor relay` `upgrades.` ``(2) Beginning no later than 180 days after a` `participating utility that is a combination utility files a` `performance-based formula rate tariff pursuant to` `subsection (c) of this Section, or, beginning no later than` `January 1, 2012 if such utility files such` `performance-based formula rate tariff within 14 days of` `October 26, 2011 (the effective date of Public Act 97-616),` `the participating utility shall, except as provided in` `subsection (b-5):` `(A) over a 10-year period, invest an estimated` `$265,000,000 in electric system upgrades,` `modernization projects, and training facilities,` `including, but not limited to:` (i) distribution infrastructure improvements` `totaling an estimated $245,000,000, which may` `include bulk supply substations, transformers,` `reconductoring, and rebuilding overhead` `distribution and sub-transmission lines,` `underground residential distribution cable` `injection and replacement and mainline cable` `system refurbishment and replacement projects;` (ii) training facility construction or upgrade` `projects totaling an estimated $1,000,000; any` `such new facility must be designed for the purpose` `of obtaining, and the owner of the facility shall` `apply for, certification under the United States` `Green Building Council's Leadership in Energy` `Efficiency Design Green Building Rating System;` `and` (iii) wood pole inspection, treatment, and` `replacement programs; and` `(B) over a 10-year period, invest an estimated` `$360,000,000 to upgrade and modernize its transmission` `and distribution infrastructure and in Smart Grid` `electric system upgrades, including, but not limited` `to:` (i) additional smart meters;` (ii) distribution automation;` (iii) associated cyber secure data` `communication network; and` (iv) substation micro-processor relay` `upgrades.` For purposes of this Section, "Smart Grid electric system` `upgrades" shall have the meaning set forth in subsection (a) of` `Section 16-108.6 of this Act.` The investments in the infrastructure investment program` `described in this subsection (b) shall be incremental to the` `participating utility's annual capital investment program, as` `defined by, for purposes of this subsection (b), the` `participating utility's average capital spend for calendar` `years 2008, 2009, and 2010 as reported in the applicable` `Federal Energy Regulatory Commission (FERC) Form 1; provided` `that where one or more utilities have merged, the average` `capital spend shall be determined using the aggregate of the` `merged utilities' capital spend reported in FERC Form 1 for the` `years 2008, 2009, and 2010. A participating utility may add` `reasonable construction ramp-up and ramp-down time to the` `investment periods specified in this subsection (b). For each` `such investment period, the ramp-up and ramp-down time shall` `not exceed a total of 6 months.` Within 60 days after filing a tariff under subsection (c)` `of this Section, a participating utility shall submit to the` `Commission its plan, including scope, schedule, and staffing,` `for satisfying its infrastructure investment program` `commitments pursuant to this subsection (b). The submitted plan` `shall include a schedule and staffing plan for the next` `calendar year. The plan shall also include a plan for the` `creation, operation, and administration of a Smart Grid test` `bed as described in subsection (c) of Section 16-108.8. The` `plan need not allocate the work equally over the respective` `periods, but should allocate material increments throughout` `such periods commensurate with the work to be undertaken. No` `later than April 1 of each subsequent year, the utility shall` `submit to the Commission a report that includes any updates to` `the plan, a schedule for the next calendar year, the` `expenditures made for the prior calendar year and cumulatively,` `and the number of full-time equivalent jobs created for the` `prior calendar year and cumulatively. If the utility is` `materially deficient in satisfying a schedule or staffing plan,` `then the report must also include a corrective action plan to` `address the deficiency. The fact that the plan, implementation` `of the plan, or a schedule changes shall not imply the` `imprudence or unreasonableness of the infrastructure` `investment program, plan, or schedule. Further, no later than` `45 days following the last day of the first, second, and third` `quarters of each year of the plan, a participating utility` `shall submit to the Commission a verified quarterly report for` `the prior quarter that includes (i) the total number of` `full-time equivalent jobs created during the prior quarter,` `(ii) the total number of employees as of the last day of the` `prior quarter, (iii) the total number of full-time equivalent` `hours in each job classification or job title, (iv) the total` `number of incremental employees and contractors in support of` `the investments undertaken pursuant to this subsection (b) for` `the prior quarter, and (v) any other information that the` `Commission may require by rule.` With respect to the participating utility's peak job` `commitment, if, after considering the utility's corrective` `action plan and compliance thereunder, the Commission enters an` `order finding, after notice and hearing, that a participating` `utility did not satisfy its peak job commitment described in` `this subsection (b) for reasons that are reasonably within its` `control, then the Commission shall also determine, after` `consideration of the evidence, including, but not limited to,` `evidence submitted by the Department of Commerce and Economic` `Opportunity and the utility, the deficiency in the number of` `full-time equivalent jobs during the peak program year due to` `such failure. The Commission shall notify the Department of any` `proceeding that is initiated pursuant to this paragraph. For` `each full-time equivalent job deficiency during the peak` `program year that the Commission finds as set forth in this` `paragraph, the participating utility shall, within 30 days` `after the entry of the Commission's order, pay $6,000 to a fund` `for training grants administered under Section 605-800 of the` `Department of Commerce and Economic Opportunity Law, which` `shall not be a recoverable expense.` With respect to the participating utility's investment` `amount commitments, if, after considering the utility's` `corrective action plan and compliance thereunder, the` `Commission enters an order finding, after notice and hearing,` `that a participating utility is not satisfying its investment` `amount commitments described in this subsection (b), then the` `utility shall no longer be eligible to annually update the` `performance-based formula rate tariff pursuant to subsection` `(d) of this Section. In such event, the then current rates` `shall remain in effect until such time as new rates are set` `pursuant to Article IX of this Act, subject to retroactive` `adjustment, with interest, to reconcile rates charged with` `actual costs.` If the Commission finds that a participating utility is no` `longer eligible to update the performance-based formula rate` `tariff pursuant to subsection (d) of this Section, or the` `performance-based formula rate is otherwise terminated, then` `the participating utility's voluntary commitments and` `obligations under this subsection (b) shall immediately` `terminate, except for the utility's obligation to pay an amount` `already owed to the fund for training grants pursuant to a` `Commission order.` In meeting the obligations of this subsection (b), to the` `extent feasible and consistent with State and federal law, the` `investments under the infrastructure investment program should` `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.` (b-5) Nothing in this Section shall prohibit the Commission` `from investigating the prudence and reasonableness of the` `expenditures made under the infrastructure investment program` `during the annual review required by subsection (d) of this` `Section and shall, as part of such investigation, determine` `whether the utility's actual costs under the program are` `prudent and reasonable. The fact that a participating utility` `invests more than the minimum amounts specified in subsection` `(b) of this Section or its plan shall not imply imprudence or` `unreasonableness.` If the participating utility finds that it is implementing` `its plan for satisfying the infrastructure investment program` `commitments described in subsection (b) of this Section at a` `cost below the estimated amounts specified in subsection (b) of` `this Section, then the utility may file a petition with the` `Commission requesting that it be permitted to satisfy its` `commitments by spending less than the estimated amounts` `specified in subsection (b) of this Section. The Commission` `shall, after notice and hearing, enter its order approving, or` `approving as modified, or denying each such petition within 150` `days after the filing of the petition.` In no event, absent General Assembly approval, shall the` `capital investment costs incurred by a participating utility` `other than a combination utility in satisfying its` `infrastructure investment program commitments described in` `subsection (b) of this Section exceed $3,000,000,000 or, for a` `participating utility that is a combination utility,` `$720,000,000. If the participating utility's updated cost` `estimates for satisfying its infrastructure investment program` `commitments described in subsection (b) of this Section exceed` `the limitation imposed by this subsection (b-5), then it shall` `submit a report to the Commission that identifies the increased` `costs and explains the reason or reasons for the increased` `costs no later than the year in which the utility estimates it` `will exceed the limitation. The Commission shall review the` `report and shall, within 90 days after the participating` `utility files the report, report to the General Assembly its` `findings regarding the participating utility's report. If the` `General Assembly does not amend the limitation imposed by this` `subsection (b-5), then the utility may modify its plan so as` `not to exceed the limitation imposed by this subsection (b-5)` `and may propose corresponding changes to the metrics` `established pursuant to subparagraphs (5) through (8) of` `subsection (f) of this Section, and the Commission may modify` `the metrics and incremental savings goals established pursuant` `to subsection (f) of this Section accordingly.` (b-10) All participating utilities shall make` `contributions for an energy low-income and support program in` `accordance with this subsection. Beginning no later than 180` `days after a participating utility files a performance-based` `formula rate tariff pursuant to subsection (c) of this Section,` `or beginning no later than January 1, 2012 if such utility` `files such performance-based formula rate tariff within 14 days` `of December 30, 2011 (the effective date of Public Act 97-646),` `and without obtaining any approvals from the Commission or any` `other agency other than as set forth in this Section,` `regardless of whether any such approval would otherwise be` `required, a participating utility other than a combination` `utility shall pay $10,000,000 per year for 5 years and a` `participating utility that is a combination utility shall pay` `$1,000,000 per year for 10 years to the energy low-income and` `support program, which is intended to fund customer assistance` `programs with the primary purpose being avoidance of imminent` `disconnection. Such programs may include:` ``(1) a residential hardship program that may partner` `with community-based organizations, including senior` `citizen organizations, and provides grants to low-income` `residential customers, including low-income senior` `citizens, who demonstrate a hardship;` ``(2) a program that provides grants and other bill` `payment concessions to veterans with disabilities who` `demonstrate a hardship and members of the armed services or` `reserve forces of the United States or members of the` `Illinois National Guard who are on active duty pursuant to` `an executive order of the President of the United States,` `an act of the Congress of the United States, or an order of` `the Governor and who demonstrate a hardship;` ``(3) a budget assistance program that provides tools and` `education to low-income senior citizens to assist them with` `obtaining information regarding energy usage and effective` `means of managing energy costs;` ``(4) a non-residential special hardship program that` `provides grants to non-residential customers such as small` `businesses and non-profit organizations that demonstrate a` `hardship, including those providing services to senior` `citizen and low-income customers; and` ``(5) a performance-based assistance program that` `provides grants to encourage residential customers to make` `on-time payments by matching a portion of the customer's` `payments or providing credits towards arrearages.` The payments made by a participating utility pursuant to` `this subsection (b-10) shall not be a recoverable expense. A` `participating utility may elect to fund either new or existing` `customer assistance programs, including, but not limited to,` `those that are administered by the utility.` Programs that use funds that are provided by a` `participating utility to reduce utility bills may be` `implemented through tariffs that are filed with and reviewed by` `the Commission. If a utility elects to file tariffs with the` `Commission to implement all or a portion of the programs, those` `tariffs shall, regardless of the date actually filed, be deemed` `accepted and approved, and shall become effective on December` `30, 2011 (the effective date of Public Act 97-646). The` `participating utilities whose customers benefit from the funds` `that are disbursed as contemplated in this Section shall file` `annual reports documenting the disbursement of those funds with` `the Commission. The Commission has the authority to audit` `disbursement of the funds to ensure they were disbursed` `consistently with this Section.` If the Commission finds that a participating utility is no` `longer eligible to update the performance-based formula rate` `tariff pursuant to subsection (d) of this Section, or the` `performance-based formula rate is otherwise terminated, then` `the participating utility's voluntary commitments and` `obligations under this subsection (b-10) shall immediately` `terminate.` (c) A participating utility may elect to recover its` `delivery services costs through a performance-based formula` `rate approved by the Commission, which shall specify the cost` `components that form the basis of the rate charged to customers` `with sufficient specificity to operate in a standardized manner` `and be updated annually with transparent information that` `reflects the utility's actual costs to be recovered during the` `applicable rate year, which is the period beginning with the` `first billing day of January and extending through the last` `billing day of the following December. In the event the utility` `recovers a portion of its costs through automatic adjustment` `clause tariffs on October 26, 2011 (the effective date of` `Public Act 97-616), the utility may elect to continue to` `recover these costs through such tariffs, but then these costs` `shall not be recovered through the performance-based formula` `rate. In the event the participating utility, prior to December` `30, 2011 (the effective date of Public Act 97-646), filed` `electric delivery services tariffs with the Commission` `pursuant to Section 9-201 of this Act that are related to the` `recovery of its electric delivery services costs that are still` `pending on December 30, 2011 (the effective date of Public Act` `97-646), the participating utility shall, at the time it files` `its performance-based formula rate tariff with the Commission,` `also file a notice of withdrawal with the Commission to` `withdraw the electric delivery services tariffs previously` `filed pursuant to Section 9-201 of this Act. Upon receipt of` `such notice, the Commission shall dismiss with prejudice any` `docket that had been initiated to investigate the electric` `delivery services tariffs filed pursuant to Section 9-201 of` `this Act, and such tariffs and the record related thereto shall` `not be the subject of any further hearing, investigation, or` `proceeding of any kind related to rates for electric delivery` `services.` The performance-based formula rate shall be implemented` `through a tariff filed with the Commission consistent with the` `provisions of this subsection (c) that shall be applicable to` `all delivery services customers. The Commission shall initiate` `and conduct an investigation of the tariff in a manner` `consistent with the provisions of this subsection (c) and the` `provisions of Article IX of this Act to the extent they do not` `conflict with this subsection (c). Except in the case where the` `Commission finds, after notice and hearing, that a` `participating utility is not satisfying its investment amount` `commitments under subsection (b) of this Section, the` `performance-based formula rate shall remain in effect at the` `discretion of the utility. The performance-based formula rate` `approved by the Commission shall do the following:` ``(1) Provide for the recovery of the utility's actual` `costs of delivery services that are prudently incurred and` `reasonable in amount consistent with Commission practice` `and law. The sole fact that a cost differs from that` `incurred in a prior calendar year or that an investment is` `different from that made in a prior calendar year shall not` `imply the imprudence or unreasonableness of that cost or` `investment.` ``(2) Reflect the utility's actual year-end capital` `structure for the applicable calendar year, excluding` `goodwill, subject to a determination of prudence and` `reasonableness consistent with Commission practice and` `law.``To enable the financing of the incremental capital` `expenditures, including regulatory assets, for electric` `utilities that serve less than 3,000,000 retail customers` `but more than 500,000 retail customers in the State, a` `participating electric utility's actual year-end capital` `structure that includes a common equity ratio, excluding` `goodwill, of up to and including 50% of the total capital` `structure shall be deemed reasonable and used to set rates. ``(3) Include a cost of equity, which shall be calculated` `as the sum of the following:` `(A) the average for the applicable calendar year of` `the monthly average yields of 30-year U.S. Treasury` `bonds published by the Board of Governors of the` `Federal Reserve System in its weekly H.15 Statistical` `Release or successor publication; and` `(B) 580 basis points.` ``At such time as the Board of Governors of the Federal` `Reserve System ceases to include the monthly average yields` `of 30-year U.S. Treasury bonds in its weekly H.15` `Statistical Release or successor publication, the monthly` `average yields of the U.S. Treasury bonds then having the` `longest duration published by the Board of Governors in its` `weekly H.15 Statistical Release or successor publication` `shall instead be used for purposes of this paragraph (3).` ``(4) Permit and set forth protocols, subject to a` `determination of prudence and reasonableness consistent` `with Commission practice and law, for the following:` `(A) recovery of incentive compensation expense` `that is based on the achievement of operational` `metrics, including metrics related to budget controls,` `outage duration and frequency, safety, customer` `service, efficiency and productivity, and` `environmental compliance. Incentive compensation` `expense that is based on net income or an affiliate's` `earnings per share shall not be recoverable under the` `performance-based formula rate;` `(B) recovery of pension and other post-employment` `benefits expense, provided that such costs are` `supported by an actuarial study;` `(C) recovery of severance costs, provided that if` `the amount is over $3,700,000 for a participating` `utility that is a combination utility or $10,000,000` `for a participating utility that serves more than 3` `million retail customers, then the full amount shall be` `amortized consistent with subparagraph (F) of this` `paragraph (4);` `(D) investment return at a rate equal to the` `utility's weighted average cost of long-term debt, on` `the pension assets as, and in the amount, reported in` `Account 186 (or in such other Account or Accounts as` `such asset may subsequently be recorded) of the` `utility's most recently filed FERC Form 1, net of` `deferred tax benefits;` `(E) recovery of the expenses related to the` `Commission proceeding under this subsection (c) to` `approve this performance-based formula rate and` `initial rates or to subsequent proceedings related to` `the formula, provided that the recovery shall be` `amortized over a 3-year period; recovery of expenses` `related to the annual Commission proceedings under` `subsection (d) of this Section to review the inputs to` `the performance-based formula rate shall be expensed` `and recovered through the performance-based formula` `rate;` `(F) amortization over a 5-year period of the full` `amount of each charge or credit that exceeds $3,700,000` `for a participating utility that is a combination` `utility or $10,000,000 for a participating utility` `that serves more than 3 million retail customers in the` `applicable calendar year and that relates to a` `workforce reduction program's severance costs, changes` `in accounting rules, changes in law, compliance with` `any Commission-initiated audit, or a single storm or` `other similar expense, provided that any unamortized` `balance shall be reflected in rate base. For purposes` `of this subparagraph (F), changes in law includes any` `enactment, repeal, or amendment in a law, ordinance,` `rule, regulation, interpretation, permit, license,` `consent, or order, including those relating to taxes,` `accounting, or to environmental matters, or in the` `interpretation or application thereof by any` `governmental authority occurring after October 26,` `2011 (the effective date of Public Act 97-616);` `(G) recovery of existing regulatory assets over` `the periods previously authorized by the Commission;` `(H) historical weather normalized billing` `determinants; and` `(I) allocation methods for common costs.` ``(5) Provide that if the participating utility's earned` `rate of return on common equity related to the provision of` `delivery services for the prior rate year (calculated using` `costs and capital structure approved by the Commission as` `provided in subparagraph (2) of this subsection (c),` `consistent with this Section, in accordance with` `Commission rules and orders, including, but not limited to,` `adjustments for goodwill, and after any Commission-ordered` `disallowances and taxes) is more than 50 basis points` `higher than the rate of return on common equity calculated` `pursuant to paragraph (3) of this subsection (c) (after` `adjusting for any penalties to the rate of return on common` `equity applied pursuant to the performance metrics` `provision of subsection (f) of this Section), then the` `participating utility shall apply a credit through the` `performance-based formula rate that reflects an amount` `equal to the value of that portion of the earned rate of` `return on common equity that is more than 50 basis points` `higher than the rate of return on common equity calculated` `pursuant to paragraph (3) of this subsection (c) (after` `adjusting for any penalties to the rate of return on common` `equity applied pursuant to the performance metrics` `provision of subsection (f) of this Section) for the prior` `rate year, adjusted for taxes. If the participating` `utility's earned rate of return on common equity related to` `the provision of delivery services for the prior rate year` `(calculated using costs and capital structure approved by` `the Commission as provided in subparagraph (2) of this` `subsection (c), consistent with this Section, in` `accordance with Commission rules and orders, including,` `but not limited to, adjustments for goodwill, and after any` `Commission-ordered disallowances and taxes) is more than` `50 basis points less than the return on common equity` `calculated pursuant to paragraph (3) of this subsection (c)` `(after adjusting for any penalties to the rate of return on` `common equity applied pursuant to the performance metrics` `provision of subsection (f) of this Section), then the` `participating utility shall apply a charge through the` `performance-based formula rate that reflects an amount` `equal to the value of that portion of the earned rate of` `return on common equity that is more than 50 basis points` `less than the rate of return on common equity calculated` `pursuant to paragraph (3) of this subsection (c) (after` `adjusting for any penalties to the rate of return on common` `equity applied pursuant to the performance metrics` `provision of subsection (f) of this Section) for the prior` `rate year, adjusted for taxes.` ``(6) Provide for an annual reconciliation, as described` `in subsection (d) of this Section, with interest, of the` `revenue requirement reflected in rates for each calendar` `year, beginning with the calendar year in which the utility` `files its performance-based formula rate tariff pursuant` `to subsection (c) of this Section, with what the revenue` `requirement would have been had the actual cost information` `for the applicable calendar year been available at the` `filing date.` The utility shall file, together with its tariff, final` `data based on its most recently filed FERC Form 1, plus` `projected plant additions and correspondingly updated` `depreciation reserve and expense for the calendar year in which` `the tariff and data are filed, that shall populate the` `performance-based formula rate and set the initial delivery` `services rates under the formula. For purposes of this Section,` `"FERC Form 1" means the Annual Report of Major Electric` `Utilities, Licensees and Others that electric utilities are` `required to file with the Federal Energy Regulatory Commission` `under the Federal Power Act, Sections 3, 4(a), 304 and 209,` `modified as necessary to be consistent with 83 Ill. Admin. Code` `Part 415 as of May 1, 2011. Nothing in this Section is intended` `to allow costs that are not otherwise recoverable to be` `recoverable by virtue of inclusion in FERC Form 1.` After the utility files its proposed performance-based` `formula rate structure and protocols and initial rates, the` `Commission shall initiate a docket to review the filing. The` `Commission shall enter an order approving, or approving as` `modified, the performance-based formula rate, including the` `initial rates, as just and reasonable within 270 days after the` `date on which the tariff was filed, or, if the tariff is filed` `within 14 days after October 26, 2011 (the effective date of` `Public Act 97-616), then by May 31, 2012. Such review shall be` `based on the same evidentiary standards, including, but not` `limited to, those concerning the prudence and reasonableness of` `the costs incurred by the utility, the Commission applies in a` `hearing to review a filing for a general increase in rates` `under Article IX of this Act. The initial rates shall take` `effect within 30 days after the Commission's order approving` `the performance-based formula rate tariff.` Until such time as the Commission approves a different rate` `design and cost allocation pursuant to subsection (e) of this` `Section, rate design and cost allocation across customer` `classes shall be consistent with the Commission's most recent` `order regarding the participating utility's request for a` `general increase in its delivery services rates.` Subsequent changes to the performance-based formula rate` `structure or protocols shall be made as set forth in Section` `9-201 of this Act, but nothing in this subsection (c) is` `intended to limit the Commission's authority under Article IX` `and other provisions of this Act to initiate an investigation` `of a participating utility's performance-based formula rate` `tariff, provided that any such changes shall be consistent with` `paragraphs (1) through (6) of this subsection (c). Any change` `ordered by the Commission shall be made at the same time new` `rates take effect following the Commission's next order` `pursuant to subsection (d) of this Section, provided that the` `new rates take effect no less than 30 days after the date on` `which the Commission issues an order adopting the change.` A participating utility that files a tariff pursuant to` `this subsection (c) must submit a one-time $200,000 filing fee` `at the time the Chief Clerk of the Commission accepts the` `filing, which shall be a recoverable expense.` In the event the performance-based formula rate is` `terminated, the then current rates shall remain in effect until` `such time as new rates are set pursuant to Article IX of this` `Act, subject to retroactive rate adjustment, with interest, to` `reconcile rates charged with actual costs. At such time that` `the performance-based formula rate is terminated, the` `participating utility's voluntary commitments and obligations` `under subsection (b) of this Section shall immediately` `terminate, except for the utility's obligation to pay an amount` `already owed to the fund for training grants pursuant to a` `Commission order issued under subsection (b) of this Section.` (d) Subsequent to the Commission's issuance of an order` `approving the utility's performance-based formula rate` `structure and protocols, and initial rates under subsection (c)` `of this Section, the utility shall file, on or before May 1 of` `each year, with the Chief Clerk of the Commission its updated` `cost inputs to the performance-based formula rate for the` `applicable rate year and the corresponding new charges. Each` `such filing shall conform to the following requirements and` `include the following information:` ``(1) The inputs to the performance-based formula rate` `for the applicable rate year shall be based on final` `historical data reflected in the utility's most recently` `filed annual FERC Form 1 plus projected plant additions and` `correspondingly updated depreciation reserve and expense` `for the calendar year in which the inputs are filed. The` `filing shall also include a reconciliation of the revenue` `requirement that was in effect for the prior rate year (as` `set by the cost inputs for the prior rate year) with the` `actual revenue requirement for the prior rate year` `(determined using a year-end rate base) that uses amounts` `reflected in the applicable FERC Form 1 that reports the` `actual costs for the prior rate year. Any over-collection` `or under-collection indicated by such reconciliation shall` `be reflected as a credit against, or recovered as an` `additional charge to, respectively, with interest` `calculated at a rate equal to the utility's weighted` `average cost of capital approved by the Commission for the` `prior rate year, the charges for the applicable rate year.` `Provided, however, that the first such reconciliation` `shall be for the calendar year in which the utility files` `its performance-based formula rate tariff pursuant to` `subsection (c) of this Section and shall reconcile (i) the` `revenue requirement or requirements established by the` `rate order or orders in effect from time to time during` `such calendar year (weighted, as applicable) with (ii) the` `revenue requirement determined using a year-end rate base` `for that calendar year calculated pursuant to the` `performance-based formula rate using (A) actual costs for` `that year as reflected in the applicable FERC Form 1, and` `(B) for the first such reconciliation only, the cost of` `equity, which shall be calculated as the sum of 590 basis` `points plus the average for the applicable calendar year of` `the monthly average yields of 30-year U.S. Treasury bonds` `published by the Board of Governors of the Federal Reserve` `System in its weekly H.15 Statistical Release or successor` `publication. The first such reconciliation is not intended` `to provide for the recovery of costs previously excluded` `from rates based on a prior Commission order finding of` `imprudence or unreasonableness. Each reconciliation shall` `be certified by the participating utility in the same` `manner that FERC Form 1 is certified. The filing shall also` `include the charge or credit, if any, resulting from the` `calculation required by paragraph (6) of subsection (c) of` `this Section.` ``Notwithstanding anything that may be to the contrary,` `the intent of the reconciliation is to ultimately reconcile` `the revenue requirement reflected in rates for each` `calendar year, beginning with the calendar year in which` `the utility files its performance-based formula rate` `tariff pursuant to subsection (c) of this Section, with` `what the revenue requirement determined using a year-end` `rate base for the applicable calendar year would have been` `had the actual cost information for the applicable calendar` `year been available at the filing date.` ``(2) The new charges shall take effect beginning on the` `first billing day of the following January billing period` `and remain in effect through the last billing day of the` `next December billing period regardless of whether the` `Commission enters upon a hearing pursuant to this` `subsection (d).` ``(3) The filing shall include relevant and necessary` `data and documentation for the applicable rate year that is` `consistent with the Commission's rules applicable to a` `filing for a general increase in rates or any rules adopted` `by the Commission to implement this Section. Normalization` `adjustments shall not be required. Notwithstanding any` `other provision of this Section or Act or any rule or other` `requirement adopted by the Commission, a participating` `utility that is a combination utility with more than one` `rate zone shall not be required to file a separate set of` `such data and documentation for each rate zone and may` `combine such data and documentation into a single set of` `schedules.` Within 45 days after the utility files its annual update of` `cost inputs to the performance-based formula rate, the` `Commission shall have the authority, either upon complaint or` `its own initiative, but with reasonable notice, to enter upon a` `hearing concerning the prudence and reasonableness of the costs` `incurred by the utility to be recovered during the applicable` `rate year that are reflected in the inputs to the` `performance-based formula rate derived from the utility's FERC` `Form 1. During the course of the hearing, each objection shall` `be stated with particularity and evidence provided in support` `thereof, after which the utility shall have the opportunity to` `rebut the evidence. Discovery shall be allowed consistent with` `the Commission's Rules of Practice, which Rules shall be` `enforced by the Commission or the assigned hearing examiner.` `The Commission shall apply the same evidentiary standards,` `including, but not limited to, those concerning the prudence` `and reasonableness of the costs incurred by the utility, in the` `hearing as it would apply in a hearing to review a filing for a` `general increase in rates under Article IX of this Act. The` `Commission shall not, however, have the authority in a` `proceeding under this subsection (d) to consider or order any` `changes to the structure or protocols of the performance-based` `formula rate approved pursuant to subsection (c) of this` `Section. In a proceeding under this subsection (d), the` `Commission shall enter its order no later than the earlier of` `240 days after the utility's filing of its annual update of` `cost inputs to the performance-based formula rate or December` `31. The Commission's determinations of the prudence and` `reasonableness of the costs incurred for the applicable` `calendar year shall be final upon entry of the Commission's` `order and shall not be subject to reopening, reexamination, or` `collateral attack in any other Commission proceeding, case,` `docket, order, rule or regulation, provided, however, that` `nothing in this subsection (d) shall prohibit a party from` `petitioning the Commission to rehear or appeal to the courts` `the order pursuant to the provisions of this Act.` In the event the Commission does not, either upon complaint` `or its own initiative, enter upon a hearing within 45 days` `after the utility files the annual update of cost inputs to its` `performance-based formula rate, then the costs incurred for the` `applicable calendar year shall be deemed prudent and` `reasonable, and the filed charges shall not be subject to` `reopening, reexamination, or collateral attack in any other` `proceeding, case, docket, order, rule, or regulation.` A participating utility's first filing of the updated cost` `inputs, and any Commission investigation of such inputs` `pursuant to this subsection (d) shall proceed notwithstanding` `the fact that the Commission's investigation under subsection` `(c) of this Section is still pending and notwithstanding any` `other law, order, rule, or Commission practice to the contrary.` (e) Nothing in subsections (c) or (d) of this Section shall` `prohibit the Commission from investigating, or a participating` `utility from filing, revenue-neutral tariff changes related to` `rate design of a performance-based formula rate that has been` `placed into effect for the utility. Following approval of a` `participating utility's performance-based formula rate tariff` `pursuant to subsection (c) of this Section, the utility shall` `make a filing with the Commission within one year after the` `effective date of the performance-based formula rate tariff` `that proposes changes to the tariff to incorporate the findings` `of any final rate design orders of the Commission applicable to` `the participating utility and entered subsequent to the` `Commission's approval of the tariff. The Commission shall,` `after notice and hearing, enter its order approving, or` `approving with modification, the proposed changes to the` `performance-based formula rate tariff within 240 days after the` `utility's filing. Following such approval, the utility shall` `make a filing with the Commission during each subsequent 3-year` `period that either proposes revenue-neutral tariff changes or` `re-files the existing tariffs without change, which shall` `present the Commission with an opportunity to suspend the` `tariffs and consider revenue-neutral tariff changes related to` `rate design.` (f) Within 30 days after the filing of a tariff pursuant to` `subsection (c) of this Section, each participating utility` `shall develop and file with the Commission multi-year metrics` `designed to achieve, ratably (i.e., in equal segments) over a` `10-year period, improvement over baseline performance values` `as follows:` ``(1) Twenty percent improvement in the System Average` `Interruption Frequency Index, using a baseline of the` `average of the data from 2001 through 2010.` ``(2) Fifteen percent improvement in the system Customer` `Average Interruption Duration Index, using a baseline of` `the average of the data from 2001 through 2010.` ``(3) For a participating utility other than a` `combination utility, 20% improvement in the System Average` `Interruption Frequency Index for its Southern Region,` `using a baseline of the average of the data from 2001` `through 2010. For purposes of this paragraph (3), Southern` `Region shall have the meaning set forth in the` `participating utility's most recent report filed pursuant` `to Section 16-125 of this Act.` ``(3.5) For a participating utility other than a` `combination utility, 20% improvement in the System Average` `Interruption Frequency Index for its Northeastern Region,` `using a baseline of the average of the data from 2001` `through 2010. For purposes of this paragraph (3.5),` `Northeastern Region shall have the meaning set forth in the` `participating utility's most recent report filed pursuant` `to Section 16-125 of this Act.` ``(4) Seventy-five percent improvement in the total` `number of customers who exceed the service reliability` `targets as set forth in subparagraphs (A) through (C) of` `paragraph (4) of subsection (b) of 83 Ill. Admin. Code Part` `411.140 as of May 1, 2011, using 2010 as the baseline year.` ``(5) Reduction in issuance of estimated electric bills:` `90% improvement for a participating utility other than a` `combination utility, and 56% improvement for a` `participating utility that is a combination utility, using` `a baseline of the average number of estimated bills for the` `years 2008 through 2010.` ``(6) Consumption on inactive meters: 90% improvement` `for a participating utility other than a combination` `utility, and 56% improvement for a participating utility` `that is a combination utility, using a baseline of the` `average unbilled kilowatthours for the years 2009 and 2010.` ``(7) Unaccounted for energy: 50% improvement for a` `participating utility other than a combination utility` `using a baseline of the non-technical line loss unaccounted` `for energy kilowatthours for the year 2009.` ``(8) Uncollectible expense: reduce uncollectible` `expense by at least $30,000,000 for a participating utility` `other than a combination utility and by at least $3,500,000` `for a participating utility that is a combination utility,` `using a baseline of the average uncollectible expense for` `the years 2008 through 2010.` ``(9) Opportunities for minority-owned and female-owned` `business enterprises: design a performance metric` `regarding the creation of opportunities for minority-owned` `and female-owned business enterprises consistent with` `State and federal law using a base performance value of the` `percentage of the participating utility's capital` `expenditures that were paid to minority-owned and` `female-owned business enterprises in 2010.` The definitions set forth in 83 Ill. Admin. Code Part` `411.20 as of May 1, 2011 shall be used for purposes of` `calculating performance under paragraphs (1) through (3.5) of` `this subsection (f), provided, however, that the participating` `utility may exclude up to 9 extreme weather event days from` `such calculation for each year, and provided further that the` `participating utility shall exclude 9 extreme weather event` `days when calculating each year of the baseline period to the` `extent that there are 9 such days in a given year of the` `baseline period. For purposes of this Section, an extreme` `weather event day is a 24-hour calendar day (beginning at 12:00` `a.m. and ending at 11:59 p.m.) during which any weather event` `(e.g., storm, tornado) caused interruptions for 10,000 or more` `of the participating utility's customers for 3 hours or more.` `If there are more than 9 extreme weather event days in a year,` `then the utility may choose no more than 9 extreme weather` `event days to exclude, provided that the same extreme weather` `event days are excluded from each of the calculations performed` `under paragraphs (1) through (3.5) of this subsection (f).` The metrics shall include incremental performance goals` `for each year of the 10-year period, which shall be designed to` `demonstrate that the utility is on track to achieve the` `performance goal in each category at the end of the 10-year` `period. The utility shall elect when the 10-year period shall` `commence for the metrics set forth in subparagraphs (1) through` `(4) and (9) of this subsection (f), provided that it begins no` `later than 14 months following the date on which the utility` `begins investing pursuant to subsection (b) of this Section,` `and when the 10-year period shall commence for the metrics set` `forth in subparagraphs (5) through (8) of this subsection (f),` `provided that it begins no later than 14 months following the` `date on which the Commission enters its order approving the` `utility's Advanced Metering Infrastructure Deployment Plan` `pursuant to subsection (c) of Section 16-108.6 of this Act.` The metrics and performance goals set forth in` `subparagraphs (5) through (8) of this subsection (f) are based` `on the assumptions that the participating utility may fully` `implement the technology described in subsection (b) of this` `Section, including utilizing the full functionality of such` `technology and that there is no requirement for personal` `on-site notification. If the utility is unable to meet the` `metrics and performance goals set forth in subparagraphs (5)` `through (8) of this subsection (f) for such reasons, and the` `Commission so finds after notice and hearing, then the utility` `shall be excused from compliance, but only to the limited` `extent achievement of the affected metrics and performance` `goals was hindered by the less than full implementation.` (f-5) The financial penalties applicable to the metrics` `described in subparagraphs (1) through (8) of subsection (f) of` `this Section, as applicable, shall be applied through an` `adjustment to the participating utility's return on equity of` `no more than a total of 30 basis points in each of the first 3` `years, of no more than a total of 34 basis points in each of the` `3 years thereafter, and of no more than a total of 38 basis` `points in each of the 4 years thereafter, as follows:` ``(1) With respect to each of the incremental annual` `performance goals established pursuant to paragraph (1) of` `subsection (f) of this Section,` `(A) for each year that a participating utility` `other than a combination utility does not achieve the` `annual goal, the participating utility's return on` `equity shall be reduced as follows: during years 1` `through 3, by 5 basis points; during years 4 through 6,` `by 6 basis points; and during years 7 through 10, by 7` `basis points; and` `(B) for each year that a participating utility that` `is a combination utility does not achieve the annual` `goal, the participating utility's return on equity` `shall be reduced as follows: during years 1 through 3,` `by 10 basis points; during years 4 through 6, by 12` `basis points; and during years 7 through 10, by 14` `basis points.` ``(2) With respect to each of the incremental annual` `performance goals established pursuant to paragraph (2) of` `subsection (f) of this Section, for each year that the` `participating utility does not achieve each such goal, the` `participating utility's return on equity shall be reduced` `as follows: during years 1 through 3, by 5 basis points;` `during years 4 through 6, by 6 basis points; and during` `years 7 through 10, by 7 basis points.` ``(3) With respect to each of the incremental annual` `performance goals established pursuant to paragraphs (3)` `and (3.5) of subsection (f) of this Section, for each year` `that a participating utility other than a combination` `utility does not achieve both such goals, the participating` `utility's return on equity shall be reduced as follows:` `during years 1 through 3, by 5 basis points; during years 4` `through 6, by 6 basis points; and during years 7 through` `10, by 7 basis points.` ``(4) With respect to each of the incremental annual` `performance goals established pursuant to paragraph (4) of` `subsection (f) of this Section, for each year that the` `participating utility does not achieve each such goal, the` `participating utility's return on equity shall be reduced` `as follows: during years 1 through 3, by 5 basis points;` `during years 4 through 6, by 6 basis points; and during` `years 7 through 10, by 7 basis points.` ``(5) With respect to each of the incremental annual` `performance goals established pursuant to subparagraph (5)` `of subsection (f) of this Section, for each year that the` `participating utility does not achieve at least 95% of each` `such goal, the participating utility's return on equity` `shall be reduced by 5 basis points for each such unachieved` `goal.` ``(6) With respect to each of the incremental annual` `performance goals established pursuant to paragraphs (6),` `(7), and (8) of subsection (f) of this Section, as` `applicable, which together measure non-operational` `customer savings and benefits relating to the` `implementation of the Advanced Metering Infrastructure` `Deployment Plan, as defined in Section 16-108.6 of this` `Act, the performance under each such goal shall be` `calculated in terms of the percentage of the goal achieved.` `The percentage of goal achieved for each of the goals shall` `be aggregated, and an average percentage value calculated,` `for each year of the 10-year period. If the utility does` `not achieve an average percentage value in a given year of` `at least 95%, the participating utility's return on equity` `shall be reduced by 5 basis points.` The financial penalties shall be applied as described in` `this subsection (f-5) for the 12-month period in which the` `deficiency occurred through a separate tariff mechanism, which` `shall be filed by the utility together with its metrics. In the` `event the formula rate tariff established pursuant to` `subsection (c) of this Section terminates, the utility's` `obligations under subsection (f) of this Section and this` `subsection (f-5) shall also terminate, provided, however, that` `the tariff mechanism established pursuant to subsection (f) of` `this Section and this subsection (f-5) shall remain in effect` `until any penalties due and owing at the time of such` `termination are applied.` The Commission shall, after notice and hearing, enter an` `order within 120 days after the metrics are filed approving, or` `approving with modification, a participating utility's tariff` `or mechanism to satisfy the metrics set forth in subsection (f)` `of this Section. On June 1 of each subsequent year, each` `participating utility shall file a report with the Commission` `that includes, among other things, a description of how the` `participating utility performed under each metric and an` `identification of any extraordinary events that adversely` `impacted the utility's performance. Whenever a participating` `utility does not satisfy the metrics required pursuant to` `subsection (f) of this Section, the Commission shall, after` `notice and hearing, enter an order approving financial` `penalties in accordance with this subsection (f-5). The` `Commission-approved financial penalties shall be applied` `beginning with the next rate year. Nothing in this Section` `shall authorize the Commission to reduce or otherwise obviate` `the imposition of financial penalties for failing to achieve` `one or more of the metrics established pursuant to subparagraph` `(1) through (4) of subsection (f) of this Section.` (g) On or before July 31, 2014, each participating utility` `shall file a report with the Commission that sets forth the` `average annual increase in the average amount paid per` `kilowatthour for residential eligible retail customers,` `exclusive of the effects of energy efficiency programs,` `comparing the 12-month period ending May 31, 2012; the 12-month` `period ending May 31, 2013; and the 12-month period ending May` `31, 2014. For a participating utility that is a combination` `utility with more than one rate zone, the weighted average` `aggregate increase shall be provided. The report shall be filed` `together with a statement from an independent auditor attesting` `to the accuracy of the report. The cost of the independent` `auditor shall be borne by the participating utility and shall` `not be a recoverable expense. "The average amount paid per` `kilowatthour" shall be based on the participating utility's` `tariffed rates actually in effect and shall not be calculated` `using any hypothetical rate or adjustments to actual charges` `(other than as specified for energy efficiency) as an input.` In the event that the average annual increase exceeds 2.5%` `as calculated pursuant to this subsection (g), then Sections` `16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other` `than this subsection, shall be inoperative as they relate to` `the utility and its service area as of the date of the report` `due to be submitted pursuant to this subsection and the utility` `shall no longer be eligible to annually update the` `performance-based formula rate tariff pursuant to subsection` `(d) of this Section. In such event, the then current rates` `shall remain in effect until such time as new rates are set` `pursuant to Article IX of this Act, subject to retroactive` `adjustment, with interest, to reconcile rates charged with` `actual costs, and the participating utility's voluntary` `commitments and obligations under subsection (b) of this` `Section shall immediately terminate, except for the utility's` `obligation to pay an amount already owed to the fund for` `training grants pursuant to a Commission order issued under` `subsection (b) of this Section.` In the event that the average annual increase is 2.5% or` `less as calculated pursuant to this subsection (g), then the` `performance-based formula rate shall remain in effect as set` `forth in this Section.` For purposes of this Section, the amount per kilowatthour` `means the total amount paid for electric service expressed on a` `per kilowatthour basis, and the total amount paid for electric` `service includes without limitation amounts paid for supply,` `transmission, distribution, surcharges, and add-on taxes` `exclusive of any increases in taxes or new taxes imposed after` `October 26, 2011 (the effective date of Public Act 97-616). For` `purposes of this Section, "eligible retail customers" shall` `have the meaning set forth in Section 16-111.5 of this Act.` The fact that this Section becomes inoperative as set forth` `in this subsection shall not be construed to mean that the` `Commission may reexamine or otherwise reopen prudence or` `reasonableness determinations already made.` (h)``Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of` `this Act, other than this subsection, are inoperative after` `December 31, 2019 for every participating utility, after which` `time a participating utility shall no longer be eligible to` `annually update the performance-based formula rate tariff` `pursuant to subsection (d) of this Section. At such time, the` `then current rates shall remain in effect until such time as` `new rates are set pursuant to Article IX of this Act, subject` `to retroactive adjustment, with interest, to reconcile rates` `charged with actual costs.` By December 31, 2017, the Commission shall prepare and file` `with the General Assembly a report on the infrastructure` `program and the performance-based formula rate. The report` `shall include the change in the average amount per kilowatthour` `paid by residential customers between June 1, 2011 and May 31,` `2017. If the change in the total average rate paid exceeds 2.5%` `compounded annually, the Commission shall include in the report` `an analysis that shows the portion of the change due to the` `delivery services component and the portion of the change due` `to the supply component of the rate. The report shall include` `separate sections for each participating utility.` In the event``Sections 16-108.5, 16-108.6, 16-108.7, and` `16-108.8 of this Act``, other than this subsection (h), `do not` `become inoperative after December 31, 2019, then these Sections `are inoperative after December 31, 2022 for every participating` `utility, after which time a participating utility shall no` `longer be eligible to annually update the performance-based` `formula rate tariff pursuant to subsection (d) of this Section.` `At such time, the then current rates shall remain in effect` `until such time as new rates are set pursuant to Article IX of` `this Act, subject to retroactive adjustment, with interest, to` `reconcile rates charged with actual costs.` The fact that this Section becomes inoperative as set forth` `in this subsection shall not be construed to mean that the` `Commission may reexamine or otherwise reopen prudence or` `reasonableness determinations already made.` (i) While a participating utility may use, develop, and` `maintain broadband systems and the delivery of broadband` `services, voice-over-internet-protocol services,` `telecommunications services, and cable and video programming` `services for use in providing delivery services and Smart Grid` `functionality or application to its retail customers,` `including, but not limited to, the installation,` `implementation and maintenance of Smart Grid electric system` `upgrades as defined in Section 16-108.6 of this Act, a` `participating utility is prohibited from offering to its retail` `customers broadband services or the delivery of broadband` `services, voice-over-internet-protocol services,` `telecommunications services, or cable or video programming` `services, unless they are part of a service directly related to` `delivery services or Smart Grid functionality or applications` `as defined in Section 16-108.6 of this Act, and from recovering` `the costs of such offerings from retail customers.` (j) Nothing in this Section is intended to legislatively` `overturn the opinion issued in Commonwealth Edison Co. v. Ill.` `Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137,` `1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App.` `Ct. 2d Dist. Sept. 30, 2010). Public Act 97-616 shall not be` `construed as creating a contract between the General Assembly` `and the participating utility, and shall not establish a` `property right in the participating utility. (k) The changes made in subsections (c) and (d) of this` `Section by Public Act 98-15 are intended to be a restatement` `and clarification of existing law, and intended to give binding` `effect to the provisions of House Resolution 1157 adopted by` `the House of Representatives of the 97th General Assembly and` `Senate Resolution 821 adopted by the Senate of the 97th General` `Assembly that are reflected in paragraph (3) of this` `subsection. In addition, Public Act 98-15 preempts and` `supersedes any final Commission orders entered in Docket Nos.` `11-0721, 12-0001, 12-0293, and 12-0321 to the extent` `inconsistent with the amendatory language added to subsections` `(c) and (d).` ``(1) No earlier than 5 business days after May 22, 2013` `(the effective date of Public Act 98-15), each` `participating utility shall file any tariff changes` `necessary to implement the amendatory language set forth in` `subsections (c) and (d) of this Section by Public Act 98-15` `and a revised revenue requirement under the participating` `utility's performance-based formula rate. The Commission` `shall enter a final order approving such tariff changes and` `revised revenue requirement within 21 days after the` `participating utility's filing.` ``(2) Notwithstanding anything that may be to the` `contrary, a participating utility may file a tariff to` `retroactively recover its previously unrecovered actual` `costs of delivery service that are no longer subject to` `recovery through a reconciliation adjustment under` `subsection (d) of this Section. This retroactive recovery` `shall include any derivative adjustments resulting from` `the changes to subsections (c) and (d) of this Section by` `Public Act 98-15. Such tariff shall allow the utility to` `assess, on current customer bills over a period of 12` `monthly billing periods, a charge or credit related to` `those unrecovered costs with interest at the utility's` `weighted average cost of capital during the period in which` `those costs were unrecovered. A participating utility may` `file a tariff that implements a retroactive charge or` `credit as described in this paragraph for amounts not` `otherwise included in the tariff filing provided for in` `paragraph (1) of this subsection (k). The Commission shall` `enter a final order approving such tariff within 21 days` `after the participating utility's filing.` ``(3) The tariff changes described in paragraphs (1) and` `(2) of this subsection (k) shall relate only to, and be` `consistent with, the following provisions of Public Act` `98-15: paragraph (2) of subsection (c) regarding year-end` `capital structure, subparagraph (D) of paragraph (4) of` `subsection (c) regarding pension assets, and subsection` `(d) regarding the reconciliation components related to` `year-end rate base and interest calculated at a rate equal` `to the utility's weighted average cost of capital.` ``(4) Nothing in this subsection is intended to effect a` `dismissal of or otherwise affect an appeal from any final` `Commission orders entered in Docket Nos. 11-0721, 12-0001,` `12-0293, and 12-0321 other than to the extent of the` `amendatory language contained in subsections (c) and (d) of` `this Section of Public Act 98-15.` (l) Each participating utility shall be deemed to have been` `in full compliance with all requirements of subsection (b) of` `this Section, subsection (c) of this Section, Section 16-108.6` `of this Act, and all Commission orders entered pursuant to` `Sections 16-108.5 and 16-108.6 of this Act, up to and including` `May 22, 2013 (the effective date of Public Act 98-15). The` `Commission shall not undertake any investigation of such` `compliance and no penalty shall be assessed or adverse action` `taken against a participating utility for noncompliance with` `Commission orders associated with subsection (b) of this` `Section, subsection (c) of this Section, and Section 16-108.6` `of this Act prior to such date. Each participating utility` `other than a combination utility shall be permitted, without` `penalty, a period of 12 months after such effective date to` `take actions required to ensure its infrastructure investment` `program is in compliance with subsection (b) of this Section` `and with Section 16-108.6 of this Act. Provided further, the` `following subparagraphs shall apply to a participating utility` `other than a combination utility:` ``(A) if the Commission has initiated a proceeding` `pursuant to subsection (e) of Section 16-108.6 of this Act` `that is pending as of May 22, 2013 (the effective date of` `Public Act 98-15), then the order entered in such` `proceeding shall, after notice and hearing, accelerate the` `commencement of the meter deployment schedule approved in` `the final Commission order on rehearing entered in Docket` `No. 12-0298;` ``(B) if the Commission has entered an order pursuant to` `subsection (e) of Section 16-108.6 of this Act prior to May` `22, 2013 (the effective date of Public Act 98-15) that does` `not accelerate the commencement of the meter deployment` `schedule approved in the final Commission order on` `rehearing entered in Docket No. 12-0298, then the utility` `shall file with the Commission, within 45 days after such` `effective date, a plan for accelerating the commencement of` `the utility's meter deployment schedule approved in the` `final Commission order on rehearing entered in Docket No.` `12-0298; the Commission shall reopen the proceeding in` `which it entered its order pursuant to subsection (e) of` `Section 16-108.6 of this Act and shall, after notice and` `hearing, enter an amendatory order that approves or` `approves as modified such accelerated plan within 90 days` `after the utility's filing; or` ``(C) if the Commission has not initiated a proceeding` `pursuant to subsection (e) of Section 16-108.6 of this Act` `prior to May 22, 2013 (the effective date of Public Act` `98-15), then the utility shall file with the Commission,` `within 45 days after such effective date, a plan for` `accelerating the commencement of the utility's meter` `deployment schedule approved in the final Commission order` `on rehearing entered in Docket No. 12-0298 and the` `Commission shall, after notice and hearing, approve or` `approve as modified such plan within 90 days after the` `utility's filing.` Any schedule for meter deployment approved by the` `Commission pursuant to this subsection (l) shall take into` `consideration procurement times for meters and other equipment` `and operational issues. Nothing in Public Act 98-15 shall` `shorten or extend the end dates for the 5-year or 10-year` `periods set forth in subsection (b) of this Section or Section` `16-108.6 of this Act. Nothing in this subsection is intended to` `address whether a participating utility has, or has not,` `satisfied any or all of the metrics and performance goals` `established pursuant to subsection (f) of this Section.` (m) The provisions of Public Act 98-15 are severable under` `Section 1.31 of the Statute on Statutes.` `(Source: P.A. 98-15, eff. 5-22-13; 98-1175, eff. 6-1-15;` `99-143, eff. 7-27-15; 99-642, eff. 7-28-16.)` (220 ILCS 5/16-108.10 new)` Sec. 16-108.10.``Energy low-income and support program.` `Beginning in 2017, without obtaining any approvals from the` `Commission or any other agency, regardless of whether any such` `approval would otherwise be required, a participating utility` `that is not a combination utility, as defined by Section` `16-108.5 of this Act, shall contribute $10,000,000 per year for` `5 years to the energy low-income and support program, which is` `intended to fund customer assistance programs with the primary` `purpose being avoidance of imminent disconnection and` `reconnecting customers who have been disconnected for` `non-payment. Such programs may include:` ``(1) a residential hardship program that may partner` `with community-based organizations, including senior` `citizen organizations, and provides grants to low-income` `residential customers, including low-income senior` `citizens, who demonstrate a hardship;` ``(2) a program that provides grants and other bill` `payment concessions to disabled veterans who demonstrate a` `hardship and members of the armed services or reserve` `forces of the United States or members of the Illinois` `National Guard who are on active duty under an executive` `order of the President of the United States, an act of the` `Congress of the United States, or an order of the Governor` `and who demonstrate a hardship;` ``(3) a budget assistance program that provides tools and` `education to low-income senior citizens to assist them with` `obtaining information regarding energy usage and effective` `means of managing energy costs;` ``(4) a non-residential special hardship program that` `provides grants to non-residential customers, such as` `small businesses and non-profit organizations, that` `demonstrate a hardship, including those providing services` `to senior citizen and low-income customers; and` ``(5) a performance-based assistance program that` `provides grants to encourage residential customers to make` `on-time payments by matching a portion of the customer's` `payments or providing credits towards arrearages.` The payments made by a participating utility under this` `Section shall not be a recoverable expense. A participating` `utility may elect to fund either new or existing customer` `assistance programs, including, but not limited to, those that` `are administered by the utility.` Programs that use funds that are provided by an electric` `utility to reduce utility bills may be implemented through` `tariffs that are filed with and reviewed by the Commission. If` `a utility elects to file tariffs with the Commission to` `implement all or a portion of the programs, those tariffs` `shall, regardless of the date actually filed, be deemed` `accepted and approved and shall become effective on the first` `business day after they are filed. The electric utilities whose` `customers benefit from the funds that are disbursed as` `contemplated in this Section shall file annual reports` `documenting the disbursement of those funds with the` `Commission. The Commission may audit disbursement of the funds` `to ensure they were disbursed consistently with this Section.` If the Commission finds that a participating utility is no` `longer eligible to update the performance-based formula rate` `tariff under subsection (d) of Section 16-108.5 of this Act or` `the performance-based formula rate is otherwise terminated,` `then the participating utility's obligations under this` `Section shall immediately terminate.` (220 ILCS 5/16-108.11 new)` Sec. 16-108.11.``Employment opportunities.``To the extent` `feasible and consistent with State and federal law, the` `procurement of contracted labor, materials, and supplies by` `electric utilities in connection with the offering of delivery` `services under Article XVI of this Act should 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.` (220 ILCS 5/16-108.12 new)` Sec. 16-108.12.``Utility job training program. (a) An electric utility that serves more than 3,000,000` `customers in the State shall spend $10,000,000 per year in` `2017, 2021, and 2025 to fund the programs described in this` `Section.` ``(1) The utility shall fund a solar training pipeline` `program in the amount of $3,000,000. The utility may` `administer the program or contract with another entity to` `administer the program. The program shall be designed to` `establish a solar installer training pipeline for projects` `authorized under Section 1-56 of the Illinois Power Agency` `Act and to establish a pool of trained installers who will` `be able to install solar projects authorized under` `subsection (c) of Section 1-75 of the Illinois Power Agency` `Act and otherwise. The program may include single event` `training programs. The program described in this paragraph` `(1) shall be designed to ensure that entities that offer` `training are located in, and trainees are recruited from,` `the same communities that the program aims to serve and` `that the program provides trainees with the opportunity to` `obtain real-world experience. The program described in` `this paragraph (1) shall also be designed to assist` `trainees so that they can obtain applicable certifications` `or participate in an apprenticeship program. The utility or` `administrator shall include funding for programs that` `provide training to individuals who are or were foster` `children or that target persons with a record who are` `transitioning with job training and job placement` `programs. The program shall include an incentive to` `facilitate an increase of hiring of qualified persons who` `are or were foster children and persons with a record. It` `is a goal of the program described in this paragraph (1)` `that at least 50% of the trainees in this program come from` `within environmental justice communities and that 2,000` `jobs are created for persons who are or were foster` `children and persons with a record.` ``(2) The utility shall fund a craft apprenticeship` `program in the amount of $3,000,000. The program shall be` `an accredited or otherwise recognized apprenticeship` `program over a period not to exceed 4 years, for particular` `crafts, trades, or skills in the electric industry that` `may, but need not, be related to solar installation.` ``(3) The utility shall fund multi-cultural jobs` `programs in the amount of $4,000,000. The funding shall be` `allocated in the applicable year to individual programs as` `set forth in subparagraphs (A) through (F) of this` `paragraph (3) and may, but need not, be related to solar` `installation, over a period not to exceed 4 years, by` `diversity-focused community organizations that have a` `record of successfully delivering job training.` `(A) $1,000,000 to a community-based civil rights` `and human services not-for-profit organization that` `provides economic development, human capital, and` `education program services.` `(B) $500,000 to a not-for-profit organization that` `is also an education institution that offers training` `programs approved by the Illinois State Board of` `Education and United States Department of Education` `with the goal of providing workforce initiatives` `leading to economic independence.` `(C) $500,000 to a not-for-profit organization` `dedicated to developing the educational and leadership` `capacity of minority youth through the operation of` `schools, youth leadership clubs and youth development` `centers.` `(D) $1,000,000 to a not-for-profit organization` `dedicated to providing equal access to opportunities` `in the construction industry that offer training` `programs that include Occupational Safety and Health` `Administration 10 and 30 certifications, Environmental` `Protection Agency Renovation, Repair and Painting` `Certification and Leadership in Energy and` `Environmental Design Accredited Green Associate Exam` `preparation courses.` `(E) $500,000 to a non-profit organization that has` `a proven record of successfully implementing utility` `industry training programs, with expertise in creating` `programs that strengthen the economics of communities` `including technical training workshops and economic` `development through community and financial partners.` `(F) $500,000 to a nonprofit organization that` `provides family services, housing education, job and` `career education opportunities that has successfully` `partnered with the utility on electric industry job` `training. For the purposes of this Section, "person with a record"` `means any person who (1) has been convicted of a crime in this` `State or of an offense in any other jurisdiction, not including` `an offense or attempted offense that would subject a person to` `registration under the Sex Offender Registration Act; (2) has a` `record of an arrest or an arrest that did not result in` `conviction for any crime in this State or of an offense in any` `other jurisdiction; or (3) has a juvenile delinquency` `adjudication.` (b) Within 60 days after the effective date of this` `amendatory Act of the 99th General Assembly, an electric` `utility that serves more than 3,000,000 customers in the State` `shall file with the Commission a plan to implement this` `Section. Within 60 days after the plan is filed, the Commission` `shall enter an order approving the plan if it is consistent` `with this Section or, if the plan is not consistent with this` `Section, the Commission shall explain the deficiencies, after` `which time the utility shall file a new plan. The utility shall` `use the funds described in subparagraph (O) of paragraph (1) of` `subsection (c) of Section 1-75 of the Illinois Power Agency Act` `to pay for the Commission approved programs under this Section.` (220 ILCS 5/16-108.15 new)` Sec. 16-108.15.``Rate impacts. `` (a) Each electric utility that serves more than 500,000` `retail customers in the State shall file with the Commission` `the reports required by this Section, which shall identify the` `actual and projected average monthly increases in residential` `retail customers' electric bills due to future energy` `investment costs for the applicable period or periods.` (b) The average monthly increase calculation shall be` `comprised of the following components:` ``(1) Beginning with the 2017 calendar year, the average` `monthly amount paid by residential retail customers,` `expressed on a cents-per-kilowatthour basis, to recover` `future energy investment costs, which include the charges` `to recover the costs incurred by the utility under the` `following provisions:` `(A) Sections 8-103, Section 8-103B, and 16-111.5B` `of this Act, as applicable, and as such costs may be` `recovered under Sections 8-103, 8-103B, 16-111.5B or` `Section 16-108.5 of this Act;` `(B) subsection (d-5) of Section 1-75 of the` `Illinois Power Agency Act, as such costs may be` `recovered under subsection (k) of Section 16-108 of` `this Act; and` `(C) Section 16-107.6 of this Act.` ``Beginning with the 2018 calendar year, each of the` `average monthly charges calculated in subparagraphs (A)` `through (C) of this paragraph (1) shall be equal to the` `average of each such charge 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 or calculations required by this` `Section.` ``(2) The sum of the following:` `(A) net energy savings to residential retail` `customers that are attributable to the implementation` `of voltage optimization measures under Section 8-103B` `of this Act, expressed on a cents-per-kilowatthour` `basis, which are estimated energy and capacity` `benefits for residential retail customers minus the` `measure costs recovered from those customers, divided` `by the total number of residential retail customers,` `which quotient shall be divided by the months in the` `relevant period; notwithstanding this subparagraph` `(A), a utility may elect not to include an estimate of` `net energy savings as described in this subparagraph` `(A), in which case the value under this subparagraph` `(A) shall be zero; and` `(B) for an electric utility that serves more than` `3,000,000 retail customers in the State, the benefits` `of the programs described in Section 16-108.10 of this` `Act, which are $0.00030 per kilowatthour for the 2017,` `2018, 2019, 2020, and 2021 calendar years.` `Beginning with the 2018 calendar year, each of the` `values identified in subparagraphs (A) and (B) of this` `paragraph (2) shall be equal to the average of each` `such value during 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 or calculations required by this Section.` ``(3) For an electric utility that serves more than` `3,000,000 retail customers in the State, the residential` `retail customer energy efficiency charges shall be $2.33` `per month for the 2017 calendar year, provided that such` `charge shall be increased by 4% per year thereafter; for an` `electric utility that serves more than 500,000 but less` `than 3,000,000 retail customers in the State, the` `residential retail customer energy efficiency charges` `shall be $3.94 per month for the 2017 calendar year,` `provided that such charge shall be increased by 4% per year` `thereafter. Beginning with the 2018 calendar year, this` `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 or calculations` `required by this Section.` ``(c)(1) No later than June 30, 2017, an electric utility` `subject to this Section shall submit a report to the` `Commission that sets forth the utility's rolling 10-year` `projection of the values of each of the components` `described in paragraphs (1) through (3) of subsection (b)` `of this Section. No later than February 15, 2018 and every` `February 15 thereafter until February 15, 2031, each` `utility shall submit a report to the Commission that` `identifies the value of the actual charges applied during` `the immediately preceding calendar year and updates its` `rolling 10-year projection based on such actual charges` `provided that, beginning with the February 15, 2021 report` `and for each report thereafter, the period of time covered` `by such projection shall not extend beyond December 31,` `2030. Each report submitted under this subsection (c) shall` `calculate the actual average monthly increase in` `residential retail customers' electric bills due to future` `energy investment costs during the immediately preceding` `calendar year and shall also calculate the projected` `average monthly increase in residential retail customers'` `electric bills due to such costs over the rolling 10-year` `period. Such calculations shall be performed by` `subtracting the sum of paragraph (2) of subsection (b) of` `this Section from the sum of paragraph (1) of such` `subsection (b), multiplying such difference by, as` `applicable, the actual or forecasted average monthly` `kilowatthour consumption for the residential retail` `customer class for the applicable period, and subtracting` `from such product the applicable value identified under` `paragraph (3) of such subsection (b).` ``If the actual or projected average monthly increase for` `residential retail customers of electric utility that` `serves more than 3 million retail customers in the State` `exceeds $0.25, or the actual or projected average monthly` `increase for residential retail customers of an electric` `utility that serves more than 500,000 but less than 3` `million retail customers in the State exceeds $0.35, then` `the applicable utility shall comply with the provisions of` `paragraphs (2) through (4) of this subsection (c), as` `applicable.` ``(2) If the projected average monthly increase for` `residential retail customers during a calendar year` `exceeds the applicable limitation set forth in paragraph` `(1) of this subsection (c), then the utility shall comply` `with the following provisions, as applicable:` `(A) If an exceedance is projected during the first` `four calendar year of the rolling 10-year projection,` `then the utility shall include in its report submitted` `under paragraph (1) of this subsection (c) the` `utility's proposal or proposals to decrease the future` `energy investment costs described in paragraph (1) of` `subsection (b) of this Section to ensure that the` `limitation set forth in such paragraph (1) is not` `exceeded. The Commission shall, after notice and` `hearing, enter an order directing the utility to` `implement one or more proposals, as such proposals may` `be modified by the Commission. The Commission shall` `have the authority under this subparagraph (A) to` `approve modifications to the contracts executed under` `subsection (d-5) of Section 1-75 of the Illinois Power` `Agency Act. If the Commission approves modifications` `to such contracts, then the supplier shall have the` `option of accepting the modifications or terminating` `the modified contract or contracts, subject to the` `termination requirements and notice provisions set` `forth in item (i) of subparagraph (B) of paragraph (4)` `of this Section.` `(B) If an exceedance is projected during any` `calendar year during the last 6 years of the 10-year` `projection, then the utility shall demonstrate in its` `report submitted under paragraph (1) of this` `subsection (c) how the utility will reduce the future` `energy investment costs described in paragraph (1) of` `subsection (b) of this Section to ensure that the` `limitation set forth in such paragraph (1) is not` `exceeded.` ``(3) If the actual average monthly increase for` `residential retail customers during a calendar year` `exceeded the limitation set forth in paragraph (1) of this` `subsection (c), then the utility shall prepare and file` `with the Commission, at the time it submits its report` `under paragraph (1) of this subsection (c), a corrective` `action plan that identifies how the utility will` `immediately reduce expenditures so that the utility will be` `in compliance with such limitation beginning on January 1` `of the next calendar year. The Commission shall initiate an` `investigation to determine the factors that contributed to` `the actual average monthly increase exceeding such` `limitation for the applicable calendar year, and shall,` `after notice and hearing, enter an order approving, or` `approving with modification, the utility's corrective` `action plan within 120 days after the utility files such` `plan. The Commission shall also submit a report to the` `General Assembly no later than 30 days after it enters such` `order, and the report shall explain the results of the` `Commission's investigation and findings and conclusions of` `its order.` ``(4) If the actual average monthly increase for` `residential retail customers during a calendar year` `exceeds the limitation set forth in paragraph (1) of this` `subsection (c) for two consecutive years, then the utility` `shall indicate in its report filed under paragraph (1) of` `this subsection (c) whether the utility will proceed with` `or terminate the future energy investments described and` `authorized under subsection (d-5) of the Illinois Power` `Agency Act and Sections 8-103B and 16-107.6 of this Act.` `The utility shall be subject to the requirements of` `subparagraph (A) or (B) of this paragraph (4), as` `applicable.` `(A) If the utility indicates that it will proceed` `with the future energy investments, then it shall be` `subject to the corrective action plan requirements set` `forth in paragraph (3) of this subsection (c). In` `addition, the utility must commit to apply a credit to` `residential retail customers' bills if the actual` `average monthly increase for such customers exceeds` `the limitation set forth in paragraph (1) of this` `subsection (c) for the year in which the utility files` `its corrective action plan, which credit shall be in an` `amount that equals the portion by which the increase` `exceeds such limitation. The Commission shall initiate` `an investigation to determine the factors that` `contributed to the actual average monthly increase` `exceeding such limitation for the applicable calendar` `year, including an analysis of the factors` `contributing to the limitation being exceeded for two` `consecutive years, and shall, after notice and` `hearing, enter an order approving, or approving with` `modification, the utility's corrective action plan` `within 120 days after the utility files such plan. The` `Commission shall also submit a supplemental report to` `the General Assembly no later than 30 days after it` `enters such order, and the report shall explain the` `results of the Commission's investigation and findings` `and conclusions of its order.` `(B) If the utility indicates that it will terminate` `future energy investments, then the Commission shall,` `notwithstanding anything to the contrary:` (i) Order the utility to terminate the` `contract or contracts executed under subsection` `(d-5) of Section 1-75 of the Illinois Power Agency` `Act, pursuant to the contract termination` `provisions set forth in such subsection (d-5),` `provided that notice of such termination must be` `made at least 3 years and 75 days prior to the` `effective date of such termination. In the event` `that only a portion of the contracts executed under` `such subsection (d-5) are terminated for a` `particular zero emission facility, then the zero` `emission facility may elect to terminate all of the` `contracts executed for that facility under such` `subsection (d-5).` (ii) Within 30 days after the utility submits` `its report indicates that it will terminate future` `energy investments, initiate a proceeding to` `approve the process for terminating future` `expenditures under Section 16-107.6 of the Public` `Utilities Act. The Commission shall, after notice` `and hearing, enter its order approving such` `process no later than 120 days after initiating` `such proceeding.` (iii) Within 30 days after the utility submits` `its report indicates that it will terminate future` `energy investments, initiate a proceeding under` `Section 8-103B of this Act to reduce the cumulative` `persisting annual savings goals previously` `approved by the Commission under such Section to` `ensure just and reasonable rates. The Commission` `shall, after notice and hearing, enter its order` `approving such goal reductions no later than 120` `days after initiating such proceeding.` `Notwithstanding the termination of future energy` `investments pursuant to this subparagraph (B), the` `utility shall be permitted to continue to recover the` `costs of such investments that were incurred prior to` `such termination, including but not limited to all` `costs that are recovered through regulatory assets` `created under Sections 8-103B and 16-107.6 of this Act.` `Nothing in this Section shall limit the utility's` `ability to fully recover such costs. The utility shall` `also be permitted to continue to recover the costs of` `all payments made under contracts executed under` `subsection (d-5) until the effective date of the` `contract's termination.` (220 ILCS 5/16-108.16 new)` Sec. 16-108.16.``Commercial Rate Impacts.` (a) Each electric utility that serves more than 500,000` `retail customers in the State shall file with the Commission` `the reports required by this Section, which shall identify the` `annual average increases due to future energy investment costs` `for the applicable period or periods in electric bills to` `commercial and industrial retail customers. For purposes of` `this Section, "commercial and industrial retail customers"` `means non-residential retail customers other than those` `customers who are exempt from subsections (a) through (j) of` `Section 8-103B of this Act under subsection (l) of Section` `8-103B.` (b) The increase determination required by subsection (a)` `of this Section shall be based on a calculation comprised of` `the following components:` ``(1 )Beginning with the 2017 calendar year, the average` `annual amount paid by commercial and industrial retail` `customers, expressed on a cents-per-kilowatthour basis, to` `recover future energy investment costs, which include the` `charges to recover the costs incurred by the utility under` `the following provisions:` `(A) Sections 8-103, Section 8-103B, and 16-111.5B` `of this Act, as applicable, and as such costs may be` `recovered under Sections 8-103, 8-103B, 16-111.5B or` `Section 16-108.5 of this Act;` `(B) subsection (d-5) of Section 1-75 of the` `Illinois Power Agency Act, as such costs may be` `recovered under subsection (k) of Section 16-108 of` `this Act; and` `(C) Section 16-107.6 of this Act.` ``Beginning with the 2018 calendar year, each of the` `average annual charges calculated in subparagraphs (A)` `through (C) of this paragraph (1) shall be equal to the` `average of each such charge 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 or calculations required by this` `Section.` ``(2) The sum of the following:` `(A) annual net energy savings to commercial and` `industrial retail customers that are attributable to` `the implementation of voltage optimization measures` `under Section 8-103B of this Act, expressed on a` `cents-per-kilowatthour basis, which are estimated` `energy and capacity benefits for commercial and` `industrial retail customers minus the measure costs` `recovered from those customers, divided by the average` `annual kilowatt-hour consumption of commercial and` `industrial retail customers; notwithstanding this` `subparagraph (A), a utility may elect not to include an` `estimate of net energy savings as described in this` `subparagraph (A), in which case the value under this` `subparagraph (A) shall be zero;` `(B) the average annual cents-per-kilowatthour` `charge applied under Section 8-103 of this Act to` `commercial and industrial retail customers during` `calendar year 2016 to recover the costs authorized by` `such Section; and` `(C) incremental energy efficiency savings, which` `shall be calculated by subtracting the value` `determined in item (ii) of this subparagraph (C) from` `the value determined in item (i) of this subparagraph` `and dividing the difference by the value identified in` `item (iii) of this subparagraph:` (i) Total value, in dollars, of the cumulative` `persisting annual saving achieved from the` `installation or implementation of all energy` `efficiency measures for commercial and industrial` `retail customers under Sections 8-103, 8-103B and` `16-111.5 of this Act, net of the cumulative annual` `percentage savings in kilowatt-hours, if any,` `calculated under subparagraph (A) of this` `paragraph (2).` (ii) 2016 value, which shall equal the value` `calculated under item (i) of this subparagraph (C)` `multiplied by the quotient of (aa) the cumulative` `persisting annual savings, in kilowatt-hours,` `achieved from the installation or implementation` `of all energy efficiency measures for commercial` `and industrial retail customers under Sections` `8-103, 8-103B and 16-111.5B of this Act as of` `December 31, 2016, divided by (bb) the cumulative` `persisting annual savings, in kilowatt-hours, from` `the installation or implementation of all energy` `efficiency measures for commercial and industrial` `retail customers under Sections 8-103, 8-103B and` `16-111.5 of this Act, net of the cumulative annual` `percentage savings in kilowatt-hours, if any,` `calculated under subparagraph (A) of this` `paragraph (2).` (iii) The average annual kilowatt-hour` `consumption of those commercial and industrial` `retail customers that installed or implemented` `energy efficiency measures under energy efficiency` `programs or plans approved pursuant to Sections` `8-103, 8-103B or 16-111.5B of this Act.` `Beginning with the 2018 calendar year, each of the` `values identified in subparagraphs (A) and (C) of this` `paragraph (2) shall be equal to the average of each` `such value during 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 or calculations required by this Section.` `For purposes of this Section, cumulative` `persisting annual savings shall have the meaning set` `forth in Section 8-103B of this Act, and energy` `efficiency measures shall have the meaning set forth in` `Section 1-10 of the Illinois Power Agency Act.` ``(c)(1) No later than June 30, 2017, and every June 30` `thereafter until June 30, 2027, an electric utility subject` `to this Section shall submit a report to the Commission` `that sets forth the utility's 10-year projection of the` `values of each of the components described in paragraphs` `(1) and (2) of subsection (b) of this Section. Each` `utility's report to the Commission shall identify the` `result of the computation performed under this Section for` `the immediately preceding calendar year and update its` `10-year projection. Such calculations shall be performed` `by subtracting the sum of paragraph (2) of subsection (b)` `of this Section from the sum of paragraph (1) of such` `subsection (b).` ``In the event that the actual or projected average` `annual increase for commercial and industrial retail` `customers exceeds 1.3% of 8.90 cents-per-kilowatthour,` `which is the average amount paid per kilowatt-hour for` `electric service during the year ending December 31, 2015` `by Illinois commercial retail customers, as reported to the` `Edison Electric Institute, then the applicable utility` `shall comply with the provisions of paragraphs (2) through` `(4) of this subsection (c), as applicable.` ``(2) In the event that the projected average annual` `increase for commercial and industrial retail customers` `during a calendar year exceeds the applicable limitation` `set forth in paragraph (1) of this subsection (c), then the` `utility shall comply with the following provisions, as` `applicable:` `(A) If an exceedance is projected during the first` `four calendar years of the 10-year projection, then the` `utility shall include in its report submitted under` `paragraph (1) of this subsection (c) the utility's` `proposal or proposals to decrease the future energy` `investment costs described in paragraph (1) of` `subsection (b) of this Section to ensure that the` `limitation set forth in such paragraph (1) is not` `exceeded. The Commission shall, after notice and` `hearing, enter an order directing the utility to` `implement one or more proposals, as such proposals may` `be modified by the Commission. The Commission shall` `have the authority under this subparagraph (A) to` `approve modifications to the contracts executed under` `subsection (d-5) of Section 1-75 of the Illinois Power` `Agency Act. If the Commission approves modifications` `to such contracts that are in an amount that reduces` `the quantities to be procured under such contracts by` `more than 7%, then the supplier shall have the option` `of accepting the modifications or terminating the` `modified contract or contracts, subject to the` `termination requirements and notice provisions set` `forth in item (i) of subparagraph (B) of paragraph (4)` `of this Section.` `(B) If an exceedance is projected during any` `calendar year during the last 6 years of the 10-year` `projection, then the utility shall demonstrate in its` `report submitted under paragraph (1) of this` `subsection (c) how the utility will reduce the future` `energy investment costs described in paragraph (1) of` `subsection (b) of this Section to ensure that the` `limitation set forth in such paragraph (1) is not` `exceeded.` ``(3) If the actual average annual increase for` `commercial and industrial retail customers during a` `calendar year exceeded the limitation set forth in` `paragraph (1) of this subsection (c), then the utility` `shall prepare and file with the Commission, at the time it` `submits its report under paragraph (1) of this subsection` `(c), a corrective action plan. The Commission shall` `initiate an investigation to determine the factors that` `contributed to the actual average annual increase` `exceeding such limitation for the applicable calendar` `year, and shall, after notice and hearing, enter an order` `approving, or approving with modification, the utility's` `corrective action plan within 120 days after the utility` `files such plan. The Commission shall also submit a report` `to the General Assembly no later than 30 days after it` `enters such order, and the report shall explain the results` `of the Commission's investigation and findings and` `conclusions of its order.` ``(4) If the actual average annual increase for` `commercial and industrial retail customers during a` `calendar year exceeds the limitation set forth in paragraph` `(1) of this subsection (c) for two consecutive years, then` `the utility shall indicate in its report filed under` `paragraph (1) of this subsection (c) whether the utility` `will proceed with or terminate the future energy` `investments described and authorized under subsection` `(d-5) of the Illinois Power Agency Act and Sections 8-103B` `and 16-107.6 of this Act. The utility's election shall be` `subject to the requirements of subparagraph (A) or (B) of` `this paragraph (4), as applicable.` `(A) If the utility elects to proceed with the` `future energy investments, then it shall be subject to` `the corrective action plan requirements set forth in` `paragraph (3) of this subsection (c). In addition, the` `utility must commit to apply a credit to commercial and` `industrial retail customers' bills if the actual` `average annual increase for such customers exceeds the` `limitation set forth in paragraph (1) of this` `subsection (c) for the year in which the utility files` `its corrective action plan, which credit shall be in an` `amount that equals the portion by which the increase` `exceeds such limitation. The Commission shall initiate` `an investigation to determine the factors that` `contributed to the actual average annual increase` `exceeding such limitation for the applicable calendar` `year, including an analysis of the factors` `contributing to the limitation being exceeded for two` `consecutive years, and shall, after notice and` `hearing, enter an order approving, or approving with` `modification, the utility's corrective action plan` `within 120 days after the utility files such plan. The` `Commission shall also submit a supplemental report to` `the General Assembly no later than 30 days after it` `enters such order, and the report shall explain the` `results of the Commission's investigation and findings` `and conclusions of its order.` `(B) If the utility elects to terminate future` `energy investments, then the Commission shall,` `notwithstanding anything to the contrary:` (i) Order the utility to terminate the` `contract or contracts executed under subsection` `(d-5) of Section 1-75 of the Illinois Power Agency` `Act, pursuant to the contract termination` `provisions set forth in such subsection (d-5),` `provided that notice of such termination must be` `made at least 3 years and 75 days prior to the` `effective date of such termination. In the event` `that only a portion of the contracts executed under` `such subsection (d-5) are terminated for a` `particular zero emission facility, then the zero` `emission facility may elect to terminate all of the` `contracts executed for that facility under such` `subsection (d-5).` (ii) Within 30 days of the utility's report` `identifying its election to terminate future` `energy investments, initiate a proceeding to` `approve the process for terminating future` `expenditures under Sections 16-107.6 of the Public` `Utilities Act. The Commission shall, after notice` `and hearing, enter its order approving such` `process no later than 120 days after initiating` `such proceeding.` (iii) Within 30 days of the utility's report` `identifying its election to terminate future` `energy investments, initiate a proceeding under` `Section 8-103B of this Act to reduce the cumulative` `persisting annual savings goals previously` `approved by the Commission under such Section to` `ensure just and reasonable rates. The Commission` `shall, after notice and hearing, enter its order` `approving such goal reductions no later than 120` `days after initiating such proceeding.` `Notwithstanding the termination of future energy` `investments pursuant to this subparagraph (B), the` `utility shall be permitted to continue to recover the` `costs of such investments that were incurred prior to` `such termination, including but not limited to all` `costs that are recovered through regulatory assets` `created under Sections 8-103B and 16-107.6 of this Act.` `Nothing in this Section shall limit the utility's` `ability to fully recover such costs. The utility shall` `also be permitted to continue to recover the costs of` `all payments made under contracts executed under` `subsection (d-5) until the effective date of the` `contract's termination.` ``(5) Notwithstanding anything to the contrary, if,` `under this Section or subsection (m) of Section 16-108 of` `this Act, modifications to the contracts executed under` `subsection (d-5) of Section 1-75 of the Illinois Power` `Agency Act are, in total, in an amount that reduces the` `quantities to procured under such contracts by more than` `10%, then the supplier shall have the option of accepting` `the modifications or terminating the modified contract or` `contracts, subject to the termination requirements and` `notice provisions set forth in item (i) of subparagraph (B)` `of paragraph (4) of this Section.` (220 ILCS 5/16-111.1) ` Sec. 16-111.1.``Illinois Clean Energy Community Trust. (a) An electric utility which has sold or transferred` `generating facilities in a transaction to which subsection (k)` `of Section 16-111 applies is authorized to establish an` `Illinois clean energy community trust or foundation for the` `purposes of providing financial support and assistance to` `entities, public or private, within the State of Illinois` `including, but not limited to, units of State and local` `government, educational institutions, corporations, and` `charitable, educational, environmental and community` `organizations, for programs and projects that benefit the` `public by improving energy efficiency, developing renewable` `energy resources, supporting other energy related projects` `that improve the State's environmental quality, and supporting` `projects and programs intended to preserve or enhance the` `natural habitats and wildlife areas of the State. Provided,` `however, that the trust or foundation funds shall not be used` `for the remediation of environmentally impaired property. The` `trust or foundation may also assist in identifying other energy` `and environmental grant opportunities. (b) Such trust or foundation shall be governed by a` `declaration of trust or articles of incorporation and bylaws` `which shall, at a minimum, provide that: `` ``(1) There shall be 6 voting trustees of the trust or` `foundation, one of whom shall be appointed by the Governor,` `one of whom shall be appointed by the President of the` `Illinois Senate, one of whom shall be appointed by the` `Minority Leader of the Illinois Senate, one of whom shall` `be appointed by the Speaker of the Illinois House of` `Representatives, one of whom shall be appointed by the` `Minority Leader of the Illinois House of Representatives,` `and one of whom shall be appointed by the electric utility` `establishing the trust or foundation, provided that the` `voting trustee appointed by the utility shall be a` `representative of a recognized environmental action group` `selected by the utility. The Governor shall designate one` `of the 6 voting trustees to serve as chairman of the trust` `or foundation, who shall serve as chairman of the trust or` `foundation at the pleasure of the Governor. In addition,` `there shall be``5 `4``non-voting trustees, one of whom shall` `be appointed by the Director of Commerce and Economic` `Opportunity, one of whom shall be appointed by the Director` `of the Illinois Environmental Protection Agency, one of` `whom shall be appointed by the Director of Natural` `Resources, and``2 `one``of whom shall be appointed by the` `electric utility establishing the trust or foundation,` `provided that the non-voting trustee appointed by the` `utility shall bring financial expertise to the trust or` `foundation and shall have appropriate credentials` `therefor. `` ``(2) All voting trustees and the non-voting trustee with` `financial expertise shall be entitled to compensation for` `their services as trustees, provided, however, that no` `member of the General Assembly and no employee of the` `electric utility establishing the trust or foundation` `serving as a voting trustee shall receive any compensation` `for his or her services as a trustee, and provided further` `that the compensation to the chairman of the trust shall` `not exceed $25,000 annually and the compensation to any` `other trustee shall not exceed $20,000 annually. All` `trustees shall be entitled to reimbursement for reasonable` `expenses incurred on behalf of the trust in the performance` `of their duties as trustees. All such compensation and` `reimbursements shall be paid out of the trust. `` ``(3) Trustees shall be appointed within 30 days after` `the creation of the trust or foundation and shall serve for` `a term of 5 years commencing upon the date of their` `respective appointments, until their respective successors` `are appointed and qualified. `` ``(4) A vacancy in the office of trustee shall be filled` `by the person holding the office responsible for appointing` `the trustee whose death or resignation creates the vacancy,` `and a trustee appointed to fill a vacancy shall serve the` `remainder of the term of the trustee whose resignation or` `death created the vacancy. `` ``(5) The trust or foundation shall have an indefinite` `term, and shall terminate at such time as no trust assets` `remain. `` ``(6) The trust or foundation shall be funded in the` `minimum amount of $250,000,000, with the allocation and` `disbursement of funds for the various purposes for which` `the trust or foundation is established to be determined by` `the trustees in accordance with the declaration of trust or` `the articles of incorporation and bylaws; provided,` `however, that this amount may be reduced by up to` `$25,000,000 if, at the time the trust or foundation is` `funded, a corresponding amount is contributed by the` `electric utility establishing the trust or foundation to` `the Board of Trustees of Southern Illinois University for` `the purpose of funding programs or projects related to` `clean coal and provided further that $25,000,000 of the` `amount contributed to the trust or foundation shall be` `available to fund programs or projects related to clean` `coal. `` ``(7) The trust or foundation shall be authorized to` `employ an executive director and other employees, to enter` `into leases, contracts and other obligations on behalf of` `the trust or foundation, and to incur expenses that the` `trustees deem necessary or appropriate for the fulfillment` `of the purposes for which the trust or foundation is` `established, provided, however, that salaries and` `administrative expenses incurred on behalf of the trust or` `foundation shall not exceed $500,000 in the first fiscal` `year after the trust or foundation is established and shall` `not exceed $1,000,000 in each subsequent fiscal year. `` ``(8) The trustees may create and appoint advisory boards` `or committees to assist them with the administration of the` `trust or foundation, and to advise and make recommendations` `to them regarding the contribution and disbursement of the` `trust or foundation funds. `` (c)(1) In addition to the allocation and disbursement of` `funds for the purposes set forth in subsection (a) of this` `Section, the trustees of the trust or foundation shall` `annually contribute funds in amounts set forth in` `subparagraph (2) of this subsection to the Citizens Utility` `Board created by the Citizens Utility Board Act; provided,` `however, that any such funds shall be used solely for the` `representation of the interests of utility consumers` `before the Illinois Commerce Commission, the Federal` `Energy Regulatory Commission, and the Federal` `Communications Commission and for the provision of` `consumer education on utility service and prices and on` `benefits and methods of energy conservation. Provided,` `however, that no part of such funds shall be used to` `support (i) any lobbying activity, (ii) activities related` `to fundraising, (iii) advertising or other marketing` `efforts regarding a particular utility, or (iv)` `solicitation of support for, or advocacy of, a particular` `position regarding any specific utility or a utility's` `docketed proceeding. `` ``(2) In the calendar year in which the trust or` `foundation is first funded, the trustees shall contribute` `$1,000,000 to the Citizens Utility Board within 60 days` `after such trust or foundation is established; provided,` `however, that such contribution shall be made after` `December 31, 1999. In each of the 6 calendar years` `subsequent to the first contribution, if the trust or` `foundation is in existence, the trustees shall contribute` `to the Citizens Utility Board an amount equal to the total` `expenditures by such organization in the prior calendar` `year, as set forth in the report filed by the Citizens` `Utility Board with the chairman of such trust or foundation` `as required by subparagraph (3) of this subsection. Such` `subsequent contributions shall be made within 30 days of` `submission by the Citizens Utility Board of such report to` `the Chairman of the trust or foundation, but in no event` `shall any annual contribution by the trustees to the` `Citizens Utility Board exceed $1,000,000. Following such` `7-year period, an Illinois statutory consumer protection` `agency may petition the trust or foundation for` `contributions to fund expenditures of the type identified` `in paragraph (1), but in no event shall annual` `contributions by the trust or foundation for such` `expenditures exceed $1,000,000. `` ``(3) The Citizens Utility Board shall file a report with` `the chairman of such trust or foundation for each year in` `which it expends any funds received from the trust or` `foundation setting forth the amount of any expenditures` `(regardless of the source of funds for such expenditures)` `for: (i) the representation of the interests of utility` `consumers before the Illinois Commerce Commission, the` `Federal Energy Regulatory Commission, and the Federal` `Communications Commission, and (ii) the provision of` `consumer education on utility service and prices and on` `benefits and methods of energy conservation. Such report` `shall separately state the total amount of expenditures for` `the purposes or activities identified by items (i) and (ii)` `of this paragraph, the name and address of the external` `recipient of any such expenditure, if applicable, and the` `specific purposes or activities (including internal` `purposes or activities) for which each expenditure was` `made. Any report required by this subsection shall be filed` `with the chairman of such trust or foundation no later than` `March 31 of the year immediately following the year for` `which the report is required. (d) In addition to any other allocation and disbursement of` `funds in this Section, the trustees of the trust or foundation` `shall contribute an amount up to $125,000,000 (1) for deposit` `into the General Obligation Bond Retirement and Interest Fund` `held in the State treasury to assist in the repayment on` `general obligation bonds issued under subsection (d) of Section` `7 of the General Obligation Bond Act, and (2) for deposit into` `funds administered by agencies with responsibility for` `environmental activities to assist in payment for` `environmental programs. The amount required to be contributed` `shall be provided to the trustees in a certification letter` `from the Director of the Bureau of the Budget that shall be` `provided no later than August 1, 2003. The payment from the` `trustees shall be paid to the State no later than December 31st` `following the receipt of the letter. `(Source: P.A. 93-32, eff. 6-20-03; 94-793, eff. 5-19-06.) (220 ILCS 5/16-111.5)` Sec. 16-111.5.``Provisions relating to procurement.` (a) An electric utility that on December 31, 2005 served at` `least 100,000 customers in Illinois shall procure power and` `energy for its eligible retail customers in accordance with the` `applicable provisions set forth in Section 1-75 of the Illinois` `Power Agency Act and this Section.``Beginning with the delivery` `year commencing on June 1, 2017, such electric utility shall` `also procure zero emission credits from zero emission` `facilities in accordance with the applicable provisions set` `forth in Section 1-75 of the Illinois Power Agency Act, and,` `for years beginning on or after June 1, 2017, the utility shall` `procure renewable energy resources in 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 `Those``customers` `that are excluded from the``definition of "eligible retail` `customers" shall not be included in the``procurement``plan's` `electric supply service `plan load``requirements, and the utility` `shall procure any supply requirements, including capacity,` `ancillary services, and hourly priced energy, in the applicable` `markets as needed to serve those customers, provided that the` `utility may include in its procurement plan load requirements` `for the load that is associated with those retail customers` `whose service has been declared or deemed competitive pursuant` `to Section 16-113 of this Act to the extent that those` `customers are purchasing power and energy during one of the` `transition periods identified in subsection (b) of Section` `16-113 of this Act.` (b) A procurement plan shall be prepared for each electric` `utility consistent with the applicable requirements of the` `Illinois Power Agency Act and this Section. For purposes of` `this Section, Illinois electric utilities that are affiliated` `by virtue of a common parent company are considered to be a` `single electric utility. Small multi-jurisdictional utilities` `may request a procurement plan for a portion of or all of its` `Illinois load. Each procurement plan shall analyze the` `projected balance of supply and demand for``those retail` `customers to be included in the plan's electric supply service` `requirements `eligible retail customers``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 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` `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 `eligible``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;` (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` `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` `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 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 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` `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` `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 through an automatic` `adjustment clause tariff under subsection (k) of` `Section 16-108 of this Act. A utility shall not be` `required to advance any payment or pay any amounts` `under this Section that exceed the actual amount of` `revenues collected by the utility under paragraph (6)` `of subsection (c) of Section 1-75 of the Illinois Power` `Agency Act and subsection (k) of Section 16-108 of this` `Act, and contracts executed under this Section shall` `expressly incorporate this limitation.` `(v) For the public interest, safety, and welfare,` `the Agency and the Commission may adopt rules to carry` `out the provisions of this Section on an emergency` `basis immediately following the effective date of this` `amendatory Act of the 99th General Assembly.` `(vi) On or before July 1 of each year, the` `Commission shall hold an informal hearing for the` `purpose of receiving comments on the prior year's` `procurement process and any recommendations for` `change. (c) 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; 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;` `(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 `a `least 100,000 customers in Illinois and for each small` `multi-jurisdictional utility that on December 31, 2005` `served less than 100,000 customers in Illinois;` `(v) preserve the confidentiality of supplier and` `bidding information in a manner consistent with all` `applicable laws, rules, regulations, and tariffs;` `(vi) provide expert advice to the Commission and` `consult with the procurement administrator regarding` `issues related to procurement process design, rules,` `protocols, and policy-related matters; and` `(vii) consult with the procurement administrator` `regarding the development and use of benchmark` `criteria, standard form contracts, credit policies,` `and bid documents.` (d) Except as provided in subsection (j), the planning` `process shall be conducted as follows:` ``(1) Beginning in 2008, each Illinois utility procuring` `power pursuant to this Section shall annually provide a` `range of load forecasts to the Illinois Power Agency by` `July 15 of each year, or such other date as may be required` `by the Commission or Agency. The load forecasts shall cover` `the 5-year procurement planning period for the next` `procurement plan and shall include hourly data` `representing a high-load, low-load``,``and expected-load` `scenario for the load of``those `the eligible``retail` `customers``included in the plan's electric supply service` `requirements``. The utility shall provide supporting data` `and assumptions for each of the scenarios.` ``(2) Beginning in 2008, the Illinois Power Agency shall` `prepare a procurement plan by August 15th of each year, or` `such other date as may be required by the Commission. The` `procurement plan shall identify the portfolio of` `demand-response and power and energy products to be` `procured. Cost-effective demand-response measures shall be` `procured as set forth in item (iii) of subsection (b) of` `this Section. Copies of the procurement plan shall be` `posted and made publicly available on the Agency's and` `Commission's websites, and copies shall also be provided to` `each affected electric utility. An affected utility shall` `have 30 days following the date of posting to provide` `comment to the Agency on the procurement plan. Other` `interested entities also may comment on the procurement` `plan. All comments submitted to the Agency shall be` `specific, supported by data or other detailed analyses,` `and, if objecting to all or a portion of the procurement` `plan, accompanied by specific alternative wording or` `proposals. All comments shall be posted on the Agency's and` `Commission's websites. During this 30-day comment period,` `the Agency shall hold at least one public hearing within` `each utility's service area for the purpose of receiving` `public comment on the procurement plan. Within 14 days` `following the end of the 30-day review period, the Agency` `shall revise the procurement plan as necessary based on the` `comments received and file the procurement plan with the` `Commission and post the procurement plan on the websites.` ``(3) Within 5 days after the filing of the procurement` `plan, any person objecting to the procurement plan shall` `file an objection with the Commission. Within 10 days after` `the filing, the Commission shall determine whether a` `hearing is necessary. The Commission shall enter its order` `confirming or modifying the procurement plan within 90 days` `after the filing of the procurement plan by the Illinois` `Power Agency.` ``(4) The Commission shall approve the procurement plan,` `including expressly the forecast used in the procurement` `plan, if the Commission determines that it will ensure` `adequate, reliable, affordable, efficient, and` `environmentally sustainable electric service at the lowest` `total cost over time, taking into account any benefits of` `price stability.` (e) The procurement process shall include each of the` `following components:` ``(1) Solicitation, pre-qualification, and registration` `of bidders. The procurement administrator shall` `disseminate information to potential bidders to promote a` `procurement event, notify potential bidders that the` `procurement administrator may enter into a post-bid price` `negotiation with bidders that meet the applicable` `benchmarks, provide supply requirements, and otherwise` `explain the competitive procurement process. In addition` `to such other publication as the procurement administrator` `determines is appropriate, this information shall be` `posted on the Illinois Power Agency's and the Commission's` `websites. The procurement administrator shall also` `administer the prequalification process, including` `evaluation of credit worthiness, compliance with` `procurement rules, and agreement to the standard form` `contract developed pursuant to paragraph (2) of this` `subsection (e). The procurement administrator shall then` `identify and register bidders to participate in the` `procurement event.` ``(2) Standard contract forms and credit terms and` `instruments. The procurement administrator, in` `consultation with the utilities, the Commission, and other` `interested parties and subject to Commission oversight,` `shall develop and provide standard contract forms for the` `supplier contracts that meet generally accepted industry` `practices. Standard credit terms and instruments that meet` `generally accepted industry practices shall be similarly` `developed. The procurement administrator shall make` `available to the Commission all written comments it` `receives on the contract forms, credit terms, or` `instruments. If the procurement administrator cannot reach` `agreement with the applicable electric utility as to the` `contract terms and conditions, the procurement` `administrator must notify the Commission of any disputed` `terms and the Commission shall resolve the dispute. The` `terms of the contracts shall not be subject to negotiation` `by winning bidders, and the bidders must agree to the terms` `of the contract in advance so that winning bids are` `selected solely on the basis of price.` ``(3) Establishment of a market-based price benchmark.` `As part of the development of the procurement process, the` `procurement administrator, in consultation with the` `Commission staff, Agency staff, and the procurement` `monitor, shall establish benchmarks for evaluating the` `final prices in the contracts for each of the products that` `will be procured through the procurement process. The` `benchmarks shall be based on price data for similar` `products for the same delivery period and same delivery` `hub, or other delivery hubs after adjusting for that` `difference. The price benchmarks may also be adjusted to` `take into account differences between the information` `reflected in the underlying data sources and the specific` `products and procurement process being used to procure` `power for the Illinois utilities. The benchmarks shall be` `confidential but shall be provided to, and will be subject` `to Commission review and approval, prior to a procurement` `event.` ``(4) Request for proposals competitive procurement` `process. The procurement administrator shall design and` `issue a request for proposals to supply electricity in` `accordance with each utility's procurement plan, as` `approved by the Commission. The request for proposals shall` `set forth a procedure for sealed, binding commitment` `bidding with pay-as-bid settlement, and provision for` `selection of bids on the basis of price.` ``(5) A plan for implementing contingencies in the event` `of supplier default or failure of the procurement process` `to fully meet the expected load requirement due to` `insufficient supplier participation, Commission rejection` `of results, or any other cause.` `(i) Event of supplier default: In the event of` `supplier default, the utility shall review the` `contract of the defaulting supplier to determine if the` `amount of supply is 200 megawatts or greater, and if` `there are more than 60 days remaining of the contract` `term. If both of these conditions are met, and the` `default results in termination of the contract, the` `utility shall immediately notify the Illinois Power` `Agency that a request for proposals must be issued to` `procure replacement power, and the procurement` `administrator shall run an additional procurement` `event. If the contracted supply of the defaulting` `supplier is less than 200 megawatts or there are less` `than 60 days remaining of the contract term, the` `utility shall procure power and energy from the` `applicable regional transmission organization market,` `including ancillary services, capacity, and day-ahead` `or real time energy, or both, for the duration of the` `contract term to replace the contracted supply;` `provided, however, that if a needed product is not` `available through the regional transmission` `organization market it shall be purchased from the` `wholesale market.` `(ii) Failure of the procurement process to fully` `meet the expected load requirement: If the procurement` `process fails to fully meet the expected load` `requirement due to insufficient supplier participation` `or due to a Commission rejection of the procurement` `results, the procurement administrator, the` `procurement monitor, and the Commission staff shall` `meet within 10 days to analyze potential causes of low` `supplier interest or causes for the Commission` `decision. If changes are identified that would likely` `result in increased supplier participation, or that` `would address concerns causing the Commission to` `reject the results of the prior procurement event, the` `procurement administrator may implement those changes` `and rerun the request for proposals process according` `to a schedule determined by those parties and` `consistent with Section 1-75 of the Illinois Power` `Agency Act and this subsection. In any event, a new` `request for proposals process shall be implemented by` `the procurement administrator within 90 days after the` `determination that the procurement process has failed` `to fully meet the expected load requirement.` `(iii) In all cases where there is insufficient` `supply provided under contracts awarded through the` `procurement process to fully meet the electric` `utility's load requirement, the utility shall meet the` `load requirement by procuring power and energy from the` `applicable regional transmission organization market,` `including ancillary services, capacity, and day-ahead` `or real time energy``,``or both; provided, however, that` `if a needed product is not available through the` `regional transmission organization market it shall be` `purchased from the wholesale market.` ``(6) The procurement process described in this` `subsection is exempt from the requirements of the Illinois` `Procurement Code, pursuant to Section 20-10 of that Code.` (f) Within 2 business days after opening the sealed bids,` `the procurement administrator shall submit a confidential` `report to the Commission. The report shall contain the results` `of the bidding for each of the products along with the` `procurement administrator's recommendation for the acceptance` `and rejection of bids based on the price benchmark criteria and` `other factors observed in the process. The procurement monitor` `also shall submit a confidential report to the Commission` `within 2 business days after opening the sealed bids. The` `report shall contain the procurement monitor's assessment of` `bidder behavior in the process as well as an assessment of the` `procurement administrator's compliance with the procurement` `process and rules. The Commission shall review the confidential` `reports submitted by the procurement administrator and` `procurement monitor, and shall accept or reject the` `recommendations of the procurement administrator within 2` `business days after receipt of the reports.` (g) Within 3 business days after the Commission decision` `approving the results of a procurement event, the utility shall` `enter into binding contractual arrangements with the winning` `suppliers using the standard form contracts; except that the` `utility shall not be required either directly or indirectly to` `execute the contracts if a tariff that is consistent with` `subsection (l) of this Section has not been approved and placed` `into effect for that utility.` (h) The names of the successful bidders and the load` `weighted average of the winning bid prices for each contract` `type and for each contract term shall be made available to the` `public at the time of Commission approval of a procurement` `event. The Commission, the procurement monitor, the` `procurement administrator, the Illinois Power Agency, and all` `participants in the procurement process shall maintain the` `confidentiality of all other supplier and bidding information` `in a manner consistent with all applicable laws, rules,` `regulations, and tariffs. Confidential information, including` `the confidential reports submitted by the procurement` `administrator and procurement monitor pursuant to subsection` `(f) of this Section, shall not be made publicly available and` `shall not be discoverable by any party in any proceeding,` `absent a compelling demonstration of need, nor shall those` `reports be admissible in any proceeding other than one for law` `enforcement purposes.` (i) Within 2 business days after a Commission decision` `approving the results of a procurement event or such other date` `as may be required by the Commission from time to time, the` `utility shall file for informational purposes with the` `Commission its actual or estimated retail supply charges, as` `applicable, by customer supply group reflecting the costs` `associated with the procurement and computed in accordance with` `the tariffs filed pursuant to subsection (l) of this Section` `and approved by the Commission.` (j) Within 60 days following``August 28, 2007 (``the effective` `date of``Public Act 95-481) `this amendatory Act``, 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` `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). `In order to promote price stability for` `residential and small commercial customers during the` `transition to competition in Illinois, and notwithstanding any` `other provision of this Act, each electric utility subject to` `this Section shall enter into one or more multi-year financial` `swap contracts that become effective on the effective date of` `this amendatory Act. These contracts may be executed with` `generators and power marketers, including affiliated interests` `of the electric utility. These contracts shall be for a term of` `no more than 5 years and shall, for each respective utility or` `for any Illinois electric utilities that are affiliated by` `virtue of a common parent company and that are thereby` `considered a single electric utility for purposes of this` `subsection (k), not exceed in the aggregate 3,000 megawatts for` `any hour of the year. The contracts shall be financial` `contracts and not energy sales contracts. The contracts shall` `be executed as transactions under a negotiated master agreement` `based on the form of master agreement for financial swap` `contracts sponsored by the International Swaps and Derivatives` `Association, Inc. and shall be considered pre-existing` `contracts in the utilities' procurement plans for residential` `and small commercial customers. Costs incurred pursuant to a` `contract authorized by this subsection (k) 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.` (k-5)``(Blank). `In order to promote price stability for` `residential and small commercial customers during the` `infrastructure investment program described in subsection (b)` `of Section 16-108.5 of this Act, and notwithstanding any other` `provision of this Act or the Illinois Power Agency Act, for` `each electric utility that serves more than one million retail` `customers in Illinois, the Illinois Power Agency shall conduct` `a procurement event within 120 days after October 26, 2011 (the` `effective date of Public Act 97-616) and may procure contracts` `for energy and renewable energy credits for the period June 1,` `2013 through December 31, 2017 that satisfy the requirements of` `this subsection (k-5), including the benchmarks described in` `this subsection. These contracts shall be entered into as the` `result of a competitive procurement event, and, to the extent` `that any provisions of this Section or the Illinois Power` `Agency Act do not conflict with this subsection (k-5), such` `provisions shall apply to the procurement event. The energy` `contracts shall be for 24 hour by 7 day supply over a term that` `runs from the first delivery year through December 31, 2017.` `For a utility that serves over 2 million customers, the energy` `contracts shall be multi-year with pricing escalating at 2.5%` `per annum. The energy contracts may be designed as financial` `swaps or may require physical delivery.` Within 30 days of October 26, 2011 (the effective date of` `Public Act 97-616), each such utility shall submit to the` `Agency updated load forecasts for the period June 1, 2013` `through December 31, 2017. The megawatt volume of the contracts` `shall be based on the updated load forecasts of the minimum` `monthly on-peak or off-peak average load requirements shown in` `the forecasts, taking into account any existing energy` `contracts in effect as well as the expected migration of the` `utility's customers to alternative retail electric suppliers.` `The renewable energy credit volume shall be based on the number` `of credits that would satisfy the requirements of subsection` `(c) of Section 1-75 of the Illinois Power Agency Act, subject` `to the rate impact caps and other provisions of subsection (c)` `of Section 1-75 of the Illinois Power Agency Act. The` `evaluation of contract bids in the competitive procurement` `events for energy and for renewable energy credits shall` `incorporate price benchmarks set collaboratively by the` `Agency, the procurement administrator, the staff of the` `Commission, and the procurement monitor. If the contracts are` `swap contracts, then they shall be executed as transactions` `under a negotiated master agreement based on the form of master` `agreement for financial swap contracts sponsored by the` `International Swaps and Derivatives Association, Inc. Costs` `incurred pursuant to a contract authorized by this subsection` `(k-5) 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.` The cost of administering the procurement event described` `in this subsection (k-5) shall be paid by the winning supplier` `or suppliers to the procurement administrator through a` `supplier fee. In the event that there is no winning supplier` `for a particular utility, such utility will pay the procurement` `administrator for the costs associated with the procurement` `event, and those costs shall not be a recoverable expense.` `Nothing in this subsection (k-5) is intended to alter the` `recovery of costs for any other procurement event. (l) An electric utility shall recover its costs incurred` `under this Section, including, but not limited to, the costs of` `procuring power and energy demand-response resources under` `this Section. The utility shall file with the initial` `procurement plan its proposed tariffs through which its costs` `of procuring power that are incurred pursuant to a` `Commission-approved procurement plan and those other costs` `identified in this subsection (l), will be recovered. The` `tariffs shall include a formula rate or charge designed to pass` `through both the costs incurred by the utility in procuring a` `supply of electric power and energy for the applicable customer` `classes with no mark-up or return on the price paid by the` `utility for that supply, plus any just and reasonable costs` `that the utility incurs in arranging and providing for the` `supply of electric power and energy. The formula rate or charge` `shall also contain provisions that ensure that its application` `does not result in over or under recovery due to changes in` `customer usage and demand patterns, and that provide for the` `correction, on at least an annual basis, of any accounting` `errors that may occur. A utility shall recover through the` `tariff all reasonable costs incurred to implement or comply` `with any procurement plan that is developed and put into effect` `pursuant to Section 1-75 of the Illinois Power Agency Act and` `this Section, including any fees assessed by the Illinois Power` `Agency, costs associated with load balancing, and contingency` `plan costs. The electric utility shall also recover its full` `costs of procuring electric supply for which it contracted` `before the effective date of this Section in conjunction with` `the provision of full requirements service under fixed-price` `bundled service tariffs subsequent to December 31, 2006. All` `such costs shall be deemed to have been prudently incurred. The` `pass-through tariffs that are filed and approved pursuant to` `this Section shall not be subject to review under, or in any` `way limited by, Section 16-111(i) of this Act.``All of the costs` `incurred by the electric utility associated with the purchase` `of zero emission credits in accordance with subsection (d-5) of` `Section 1-75 of the Illinois Power Agency Act and, beginning` `June 1, 2017, all of the costs incurred by the electric utility` `associated with the purchase of renewable energy resources in` `accordance with Sections 1-56 and 1-75 of the Illinois Power` `Agency Act, shall be recovered through the electric utility's` `tariffed charges applicable to all of its retail customers, as` `specified in subsection (k) of Section 16-108 of this Act, and` `shall not be recovered through the electric utility's tariffed` `charges for electric power and energy supply to its eligible` `retail customers.` (m) The Commission has the authority to adopt rules to` `carry out the provisions of this Section. For the public` `interest, safety, and welfare, the Commission also has` `authority to adopt rules to carry out the provisions of this` `Section on an emergency basis immediately following``August 28,` `2007 (``the effective date of``Public Act 95-481) `this amendatory` `Act``.` (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 `eligible``retail customers` `included in the plan's electric supply service requirements``. If` `the facility is shown to be the least-cost option and is` `included in a procurement plan prepared in accordance with` `Section 1-75 of the Illinois Power Agency Act and this Section,` `then the electric utility shall make a filing pursuant to` `Section 8-406 of this Act, and may request of the Commission` `any statutory relief required thereunder. If the Commission` `grants all of the necessary approvals for the proposed` `facility, such supply shall thereafter be considered as a` `pre-existing contract under subsection (b) of this Section. The` `Commission shall in any order approving a proposal under this` `subsection specify how the utility will recover the prudently` `incurred costs of investing in, leasing, owning, or operating` `such generation facility through just and reasonable rates` `charged to``those `eligible``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 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` `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. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11;` `97-813, eff. 7-13-12; revised 9-14-16.)` (220 ILCS 5/16-111.5B)` Sec. 16-111.5B.``Provisions relating to energy efficiency` `procurement.` (a)``Procurement `Beginning in 2012, procurement``plans` `prepared``and filed``pursuant to Section 16-111.5 of this Act` `during the years 2012 through 2015``shall be subject to the` `following additional requirements:` ``(1) The analysis included pursuant to paragraph (2) of` `subsection (b) of Section 16-111.5 shall also include the` `impact of energy efficiency building codes or appliance` `standards, both current and projected.` ``(2) The procurement plan components described in` `subsection (b) of Section 16-111.5 shall also include an` `assessment of opportunities to expand the programs` `promoting energy efficiency measures that have been` `offered under plans approved pursuant to Section 8-103 of` `this Act or to implement additional cost-effective energy` `efficiency programs or measures.` ``(3) In addition to the information provided pursuant to` `paragraph (1) of subsection (d) of Section 16-111.5 of this` `Act, each Illinois utility procuring power pursuant to that` `Section shall annually provide to the Illinois Power Agency` `by July 15 of each year, or such other date as may be` `required by the Commission or Agency, an assessment of` `cost-effective energy efficiency programs or measures that` `could be included in the procurement plan. The assessment` `shall include the following:` `(A) A comprehensive energy efficiency potential` `study for the utility's service territory that was` `completed within the past 3 years.` `(B) Beginning in 2014, the most recent analysis` `submitted pursuant to Section 8-103A of this Act and` `approved by the Commission under subsection (f) of` `Section 8-103 of this Act.` `(C) Identification of new or expanded` `cost-effective energy efficiency programs or measures` `that are incremental to those included in energy` `efficiency and demand-response plans approved by the` `Commission pursuant to Section 8-103 of this Act and` `that would be offered to all retail customers whose` `electric service has not been declared competitive` `under Section 16-113 of this Act and who are eligible` `to purchase power and energy from the utility under` `fixed-price bundled service tariffs, regardless of` `whether such customers actually do purchase such power` `and energy from the utility.` `(D) Analysis showing that the new or expanded` `cost-effective energy efficiency programs or measures` `would lead to a reduction in the overall cost of` `electric service.` `(E) Analysis of how the cost of procuring` `additional cost-effective energy efficiency measures` `compares over the life of the measures to the` `prevailing cost of comparable supply.` `(F) An energy savings goal, expressed in` `megawatt-hours, for the year in which the measures will` `be implemented.` `(G) For each expanded or new program, the estimated` `amount that the program may reduce the agency's need to` `procure supply.` ``In preparing such assessments, a utility shall conduct` `an annual solicitation process for purposes of requesting` `proposals from third-party vendors, the results of which` `shall be provided to the Agency as part of the assessment,` `including documentation of all bids received. The utility` `shall develop requests for proposals consistent with the` `manner in which it develops requests for proposals under` `plans approved pursuant to Section 8-103 of this Act, which` `considers input from the Agency and interested` `stakeholders.` ``(4) The Illinois Power Agency shall include in the` `procurement plan prepared pursuant to paragraph (2) of` `subsection (d) of Section 16-111.5 of this Act energy` `efficiency programs and measures it determines are` `cost-effective and the associated annual energy savings` `goal included in the annual solicitation process and` `assessment submitted pursuant to paragraph (3) of this` `subsection (a).` ``(5) Pursuant to paragraph (4) of subsection (d) of` `Section 16-111.5 of this Act, the Commission shall also` `approve the energy efficiency programs and measures` `included in the procurement plan, including the annual` `energy savings goal, if the Commission determines they` `fully capture the potential for all achievable` `cost-effective savings, to the extent practicable, and` `otherwise satisfy the requirements of Section 8-103 of this` `Act.` ``In the event the Commission approves the procurement of` `additional energy efficiency, it shall reduce the amount of` `power to be procured under the procurement plan to reflect` `the additional energy efficiency and shall direct the` `utility to undertake the procurement of such energy` `efficiency, which shall not be subject to the requirements` `of subsection (e) of Section 16-111.5 of this Act. The` `utility shall consider input from the Agency and interested` `stakeholders on the procurement and administration` `process.``The requirements set forth in paragraphs (1)` `through (5) of this subsection (a) shall terminate after` `the filing of the procurement plan in 2015, and no energy` `efficiency shall be procured by the Agency thereafter.` `Energy efficiency programs approved previously under this` `Section shall terminate no later than December 31, 2017. ``(6) An electric utility shall recover its costs` `incurred under this Section related to the implementation` `of energy efficiency programs and measures approved by the` `Commission in its order approving the procurement plan` `under Section 16-111.5 of this Act, including, but not` `limited to, all costs associated with complying with this` `Section and all start-up and administrative costs and the` `costs for any evaluation, measurement, and verification of` `the measures, from all retail customers whose electric` `service has not been declared competitive under Section` `16-113 of this Act and who are eligible to purchase power` `and energy from the utility under fixed-price bundled` `service tariffs, regardless of whether such customers` `actually do purchase such power and energy from the utility` `through the automatic adjustment clause tariff established` `pursuant to Section 8-103 of this Act, provided, however,` `that the limitations described in subsection (d) of that` `Section shall not apply to the costs incurred pursuant to` `this Section or Section 16-111.7 of this Act.` (b) For purposes of this Section, the term "energy` `efficiency" shall have the meaning set forth in Section 1-10 of` `the Illinois Power Agency Act, and the term "cost-effective"` `shall have the meaning set forth in subsection (a) of Section` `8-103 of this Act. (c) The changes to this Section made by this amendatory Act` `of the 99th General Assembly shall not interfere with existing` `contracts executed under a Commission order entered under this` `Section. (d)(1) For those electric utilities subject to the` `requirements of Section 8-103B of this Act, the contracts` `governing the energy efficiency programs and measures approved` `by the Commission in its order approving the procurement plan` `for the period June 1, 2016 through May 31, 2017 may be` `extended through December 31, 2017 so that the energy` `efficiency programs subject to such contracts and approved in` `such plan continue to be offered during the period June 1, 2017` `through December 31, 2017. Each such utility is authorized to` `increase, on a pro rata basis, the energy savings goals and` `budgets approved under this Section to reflect the additional 7` `months of implementation of the energy efficiency programs and` `measures. ``(2) 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 such 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 to withdraw the proposed energy` `efficiency programs to be approved under such plan. Upon` `receipt of such notice, the Commission shall enter an order` `that approves the withdrawal of all proposed energy` `efficiency programs from the plan. The initially proposed` `energy efficiency programs shall not be approved or be the` `subject of any further hearing, investigation, proceeding,` `or order of any kind. ``(3) 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` `inconsistent with the provisions of this amendatory Act of` `the 99th General Assembly. To the extent any such` `previously entered order approved energy efficiency` `programs under this Section, the portion of such order` `approving such programs shall be void, and the provisions` `of paragraph (1) of this subsection (d) shall apply. `(Source: P.A. 97-616, eff. 10-26-11; 97-824, eff. 7-18-12.)` (220 ILCS 5/16-111.7) Sec. 16-111.7.``On-bill financing program; electric` `utilities.` (a) The Illinois General Assembly finds that Illinois homes` `and businesses have the potential to save energy through` `conservation and cost-effective energy efficiency measures.` `Programs created pursuant to this Section will allow utility` `customers to purchase cost-effective energy efficiency` `measures, including measures set forth in a` `Commission-approved energy efficiency and demand-response plan` `under Section 8-103``or 8-103B``of this Act, with no required` `initial upfront payment, and to pay the cost of those products` `and services over time on their utility bill.` (b) Notwithstanding any other provision of this Act, an` `electric utility serving more than 100,000 customers on January` `1, 2009 shall offer a Commission-approved on-bill financing` `program ("program") that allows its eligible retail customers,` `as that term is defined in Section 16-111.5 of this Act, who` `own a residential single family home, duplex, or other` `residential building with 4 or less units, or condominium at` `which the electric service is being provided (i) to borrow` `funds from a third party lender in order to purchase electric` `energy efficiency measures approved under the program for` `installation in such home or condominium without any required` `upfront payment and (ii) to pay back such funds over time` `through the electric utility's bill. Based upon the process` `described in subsection (b-5) of this Section, small commercial` `customers who own the premises at which electric service is` `being provided may be included in such program. After receiving` `a request from an electric utility for approval of a proposed` `program and tariffs pursuant to this Section, the Commission` `shall render its decision within 120 days. If no decision is` `rendered within 120 days, then the request shall be deemed to` `be approved.` Beginning no later than December 31, 2013, an electric` `utility subject to this subsection (b) shall also offer its` `program to eligible retail customers that own multifamily` `residential or mixed-use buildings with no more than 50` `residential units, provided, however, that such customers must` `either be a residential customer or small commercial customer` `and may not use the program in such a way that repayment of the` `cost of energy efficiency measures is made through tenants'` `utility bills. An electric utility may impose a per site loan` `limit not to exceed $150,000. The program, and loans issued` `thereunder, shall only be offered to customers of the utility` `that meet the requirements of this Section and that also have` `an electric service account at the premises where the energy` `efficiency measures being financed shall be installed.` `Beginning no later than 2 years after the effective date of` `this amendatory Act of the 99th General Assembly, the 50` `residential unit limitation described in this paragraph shall` `no longer apply, and the utility shall replace the per site` `loan limit of $150,000 with a loan limit that correlates to a` `maximum monthly payment that does not exceed 50% of the` `customer's average utility bill over the prior 12-month period.` Beginning no later than 2 years after the effective date of` `this amendatory Act of the 99th General Assembly, an electric` `utility subject to this subsection (b) shall also offer its` `program to eligible retail customers that are Unit Owners'` `Associations, as defined in subsection (o) of Section 2 of the` `Condominium Property Act, or Master Associations, as defined in` `subsection (u) of the Condominium Property Act. However, such` `customers must either be residential customers or small` `commercial customers and may not use the program in such a way` `that repayment of the cost of energy efficiency measures is` `made through unit owners' utility bills. The program and loans` `issued under the program shall only be offered to customers of` `the utility that meet the requirements of this Section and that` `also have an electric service account at the premises where the` `energy efficiency measures being financed shall be installed. For purposes of this Section, "small commercial customer"` `means, for an electric utility serving more than 3,000,000` `retail customers, those customers having peak demand of less` `than 100 kilowatts, and, for an electric utility serving less` `than 3,000,000 retail customers, those customers having peak` `demand of less than 150 kilowatts; provided, however, that in` `the event the Commission, after the effective date of this` `amendatory Act of the 98th General Assembly, approves changes` `to a utility's tariffs that reflects new or revised demand` `criteria for the utility's customer rate classifications, then` `the utility may file a petition with the Commission to revise` `the applicable definition of a small commercial customer to` `reflect the new or revised demand criteria for the purposes of` `this Section. After notice and hearing, the Commission shall` `enter an order approving, or approving with modification, the` `revised definition within 60 days after the utility files the` `petition.` (b-5) Within 30 days after the effective date of this` `amendatory Act of the 96th General Assembly, the Commission` `shall convene a workshop process during which interested` `participants may discuss issues related to the program,` `including program design, eligible electric energy efficiency` `measures, vendor qualifications, and a methodology for` `ensuring ongoing compliance with such qualifications,` `financing, sample documents such as request for proposals,` `contracts and agreements, dispute resolution, pre-installment` `and post-installment verification, and evaluation. The` `workshop process shall be completed within 150 days after the` `effective date of this amendatory Act of the 96th General` `Assembly.` (c) Not later than 60 days following completion of the` `workshop process described in subsection (b-5) of this Section,` `each electric utility subject to subsection (b) of this Section` `shall submit a proposed program to the Commission that contains` `the following components:` ``(1) A list of recommended electric energy efficiency` `measures that will be eligible for on-bill financing. An` `eligible electric energy efficiency measure ("measure")` `shall be a product or service for which one or more of the` `following is true:` `(A) (blank);` `(B) the projected electricity savings (determined` `by rates in effect at the time of purchase) are` `sufficient to cover the costs of implementing the` `measures, including finance charges and any program` `fees not recovered pursuant to subsection (f) of this` `Section; or` `(C) the product or service is included in a` `Commission-approved energy efficiency and` `demand-response plan under Section 8-103``or 8-103B``of` `this Act.` ``(1.5) Beginning no later than 2 years after the` `effective date of this amendatory Act of the 99th General` `Assembly, an eligible electric energy efficiency measure` `(measure) shall be a product or service that qualifies` `under subparagraph (B) or (C) of paragraph (1) of this` `subsection (c) or for which one or more of the following is` `true:` `(A) a building energy assessment, performed by an` `energy auditor who is certified by the Building` `Performance Institute or who holds a similar` `certification, has recommended the product or service` `as likely to be cost effective over the course of its` `installed life for the building in which the measure is` `to be installed; or` `(B) the product or service is necessary to safely` `or correctly install to code or industry standard an` `efficiency measure, including, but not limited to,` `installation work; changes needed to plumbing or` `electrical connections; upgrades to wiring or` `fixtures; removal of hazardous materials; correction` `of leaks; changes to thermostats, controls, or similar` `devices; and changes to venting or exhaust` `necessitated by the measure. However, the costs of the` `product or service described in this subparagraph (B)` `shall not exceed 25% of the total cost of installing` `the measure. ``(2) The electric utility shall issue a request for` `proposals ("RFP") to lenders for purposes of providing` `financing to participants to pay for approved measures. The` `RFP criteria shall include, but not be limited to, the` `interest rate, origination fees, and credit terms. The` `utility shall select the winning bidders based on its` `evaluation of these criteria, with a preference for those` `bids containing the rates, fees, and terms most favorable` `to participants;` ``(3) The utility shall work with the lenders selected` `pursuant to the RFP process, and with vendors, to establish` `the terms and processes pursuant to which a participant can` `purchase eligible electric energy efficiency measures` `using the financing obtained from the lender. The vendor` `shall explain and offer the approved financing packaging to` `those customers identified in subsection (b) of this` `Section and shall assist customers in applying for` `financing. As part of the process, vendors shall also` `provide to participants information about any other` `incentives that may be available for the measures.` ``(4) The lender shall conduct credit checks or undertake` `other appropriate measures to limit credit risk, and shall` `review and approve or deny financing applications` `submitted by customers identified in subsection (b) of this` `Section. Following the lender's approval of financing and` `the participant's purchase of the measure or measures, the` `lender shall forward payment information to the electric` `utility, and the utility shall add as a separate line item` `on the participant's utility bill a charge showing the` `amount due under the program each month.` ``(5) A loan issued to a participant pursuant to the` `program shall be the sole responsibility of the` `participant, and any dispute that may arise concerning the` `loan's terms, conditions, or charges shall be resolved` `between the participant and lender. Upon transfer of the` `property title for the premises at which the participant` `receives electric service from the utility or the` `participant's request to terminate service at such` `premises, the participant shall pay in full its electric` `utility bill, including all amounts due under the program,` `provided that this obligation may be modified as provided` `in subsection (g) of this Section. Amounts due under the` `program shall be deemed amounts owed for residential and,` `as appropriate, small commercial electric service.` ``(6) The electric utility shall remit payment in full to` `the lender each month on behalf of the participant. In the` `event a participant defaults on payment of its electric` `utility bill, the electric utility shall continue to remit` `all payments due under the program to the lender, and the` `utility shall be entitled to recover all costs related to a` `participant's nonpayment through the automatic adjustment` `clause tariff established pursuant to Section 16-111.8 of` `this Act. In addition, the electric utility shall retain a` `security interest in the measure or measures purchased` `under the program, and the utility retains its right to` `disconnect a participant that defaults on the payment of` `its utility bill.` ``(7) The total outstanding amount financed under the` `program in this subsection and subsection (c-5) of this` `Section shall not exceed $2.5 million for an electric` `utility or electric utilities under a single holding` `company, provided that the electric utility or electric` `utilities may petition the Commission for an increase in` `such amount.``Beginning after the effective date of this` `amendatory Act of the 99th General Assembly, the total` `maximum outstanding amount financed under the program in` `this subsection and subsections (c-5) and (c-10) of this` `Section shall increase by $5,000,000 per year until such` `time as the total maximum outstanding amount financed` `reaches $20,000,000. For purposes of this Section,` `"maximum outstanding amount financed" means the sum of all` `principal that has been loaned and not yet repaid. (c-5) Within 120 days after the effective date of this` `amendatory Act of the 98th General Assembly, each electric` `utility subject to the requirements of this Section shall` `submit an informational filing to the Commission that describes` `its plan for implementing the provisions of this amendatory Act` `of the 98th General Assembly on or before December 31, 2013.` `Such filing shall also describe how the electric utility shall` `coordinate its program with any gas utility or utilities that` `provide gas service to buildings within the electric utility's` `service territory so that it is practical and feasible for the` `owner of a multifamily building to make a single application to` `access loans for both gas and electric energy efficiency` `measures in any individual building.` (c-10) No later than 365 days after the effective date of` `this amendatory Act of the 99th General Assembly, each electric` `utility subject to the requirements of this Section shall` `submit an informational filing to the Commission that describes` `its plan for implementing the provisions of this amendatory Act` `of the 99th General Assembly that were incorporated into this` `Section. Such filing shall also include the criteria to be used` `by the program for determining if measures to be financed are` `eligible electric energy efficiency measures, as defined by` `paragraph (1.5) of subsection (c) of this Section. (d) A program approved by the Commission shall also include` `the following criteria and guidelines for such program:` ``(1) guidelines for financing of measures installed` `under a program, including, but not limited to, RFP` `criteria and limits on both individual loan amounts and the` `duration of the loans;` ``(2) criteria and standards for identifying and` `approving measures;` ``(3) qualifications of vendors that will market or` `install measures, as well as a methodology for ensuring` `ongoing compliance with such qualifications;` ``(4) sample contracts and agreements necessary to` `implement the measures and program; and` ``(5) the types of data and information that utilities` `and vendors participating in the program shall collect for` `purposes of preparing the reports required under` `subsection (g) of this Section.` (e) The proposed program submitted by each electric utility` `shall be consistent with the provisions of this Section that` `define operational, financial and billing arrangements between` `and among program participants, vendors, lenders, and the` `electric utility.` (f) An electric utility shall recover all of the prudently` `incurred costs of offering a program approved by the Commission` `pursuant to this Section, including, but not limited to, all` `start-up and administrative costs and the costs for program` `evaluation. All prudently incurred costs under this Section` `shall be recovered from the residential and small commercial` `retail customer classes eligible to participate in the program` `through the automatic adjustment clause tariff established` `pursuant to Section 8-103``or 8-103B``of this Act.` (g) An independent evaluation of a program shall be` `conducted after 3 years of the program's operation. The` `electric utility shall retain an independent evaluator who` `shall evaluate the effects of the measures installed under the` `program and the overall operation of the program, including,` `but not limited to, customer eligibility criteria and whether` `the payment obligation for permanent electric energy` `efficiency measures that will continue to provide benefits of` `energy savings should attach to the meter location. As part of` `the evaluation process, the evaluator shall also solicit` `feedback from participants and interested stakeholders. The` `evaluator shall issue a report to the Commission on its` `findings no later than 4 years after the date on which the` `program commenced, and the Commission shall issue a report to` `the Governor and General Assembly including a summary of the` `information described in this Section as well as its` `recommendations as to whether the program should be` `discontinued, continued with modification or modifications or` `continued without modification, provided that any recommended` `modifications shall only apply prospectively and to measures` `not yet installed or financed.` (h) An electric utility offering a Commission-approved` `program pursuant to this Section shall not be required to` `comply with any other statute, order, rule, or regulation of` `this State that may relate to the offering of such program,` `provided that nothing in this Section is intended to limit the` `electric utility's obligation to comply with this Act and the` `Commission's orders, rules, and regulations, including Part` `280 of Title 83 of the Illinois Administrative Code.` (i) The source of a utility customer's electric supply` `shall not disqualify a customer from participation in the` `utility's on-bill financing program. Customers of alternative` `retail electric suppliers may participate in the program under` `the same terms and conditions applicable to the utility's` `supply customers. `(Source: P.A. 97-616, eff. 10-26-11; 98-586, eff. 8-27-13.)` (220 ILCS 5/16-115D)` Sec. 16-115D.``Renewable portfolio standard for alternative` `retail electric suppliers and electric utilities operating` `outside their service territories.` (a) An alternative retail electric supplier shall be` `responsible for procuring cost-effective renewable energy` `resources as required under item (5) of subsection (d) of` `Section 16-115 of this Act as outlined herein:` ``(1) The definition of renewable energy resources` `contained in Section 1-10 of the Illinois Power Agency Act` `applies to all renewable energy resources required to be` `procured by alternative retail electric suppliers.` ``(2)``Through May 31, 2017, the `The``quantity of renewable` `energy resources shall be measured as a percentage of the` `actual amount of metered electricity (megawatt-hours)` `delivered by the alternative retail electric supplier to` `Illinois retail customers during the 12-month period June 1` `through May 31, commencing June 1, 2009, and the comparable` `12-month period in each year thereafter except as provided` `in item (6) of this subsection (a).` ``(3)``Through May 31, 2017, the `The``quantity of renewable` `energy resources shall be in amounts at least equal to the` `annual percentages set forth in item (1) of subsection (c)` `of Section 1-75 of the Illinois Power Agency Act. At least` `60% of the renewable energy resources procured pursuant to` `items (1)``and `through``(3) of subsection (b) of this Section` `shall come from wind generation and, starting June 1, 2015,` `at least 6% of the renewable energy resources procured` `pursuant to items (1)``and `through``(3) of subsection (b) of` `this Section shall come from solar photovoltaics. If, in` `any given year, an alternative retail electric supplier` `does not purchase at least these levels of renewable energy` `resources, then the alternative retail electric supplier` `shall make alternative compliance payments, as described` `in subsection (d) of this Section.` ``(3.5) For the delivery year commencing June 1, 2017,` `the quantity of renewable energy resources shall be at` `least 13.0% of the uncovered amount of metered electricity` `(megawatt-hours) delivered by the alternative retail` `electric supplier to Illinois retail customers during the` `delivery year, which uncovered amount shall equal 50% of` `such metered electricity delivered by the alternative` `retail electric supplier. For the delivery year commencing` `June 1, 2018, the quantity of renewable energy resources` `shall be at least 14.5% of the uncovered amount of metered` `electricity (megawatt-hours) delivered by the alternative` `retail electric supplier to Illinois retail customers` `during the delivery year, which uncovered amount shall` `equal 25% of such metered electricity delivered by the` `alternative retail electric supplier. At least 32% of the` `renewable energy resources procured by the alternative` `retail electric supplier for its uncovered portion under` `this paragraph (3.5) shall come from wind or photovoltaic` `generation. The renewable energy resources procured under` `this paragraph (3.5) shall not include any resources from a` `facility whose costs were being recovered through rates` `regulated by any state or states on or after January 1,` `2017. ``(4) The quantity and source of renewable energy` `resources shall be independently verified through the PJM` `Environmental Information System Generation Attribute` `Tracking System (PJM-GATS) or the Midwest Renewable Energy` `Tracking System (M-RETS), which shall document the` `location of generation, resource type, month, and year of` `generation for all qualifying renewable energy resources` `that an alternative retail electric supplier uses to comply` `with this Section. No later than June 1, 2009, the Illinois` `Power Agency shall provide PJM-GATS, M-RETS, and` `alternative retail electric suppliers with all information` `necessary to identify resources located in Illinois,` `within states that adjoin Illinois or within portions of` `the PJM and MISO footprint in the United States that` `qualify under the definition of renewable energy resources` `in Section 1-10 of the Illinois Power Agency Act for` `compliance with this Section 16-115D. Alternative retail` `electric suppliers shall not be subject to the requirements` `in item (3) of subsection (c) of Section 1-75 of the` `Illinois Power Agency Act.` ``(5) All renewable energy credits used to comply with` `this Section shall be permanently retired.` ``(6) The required procurement of renewable energy` `resources by an alternative retail electric supplier shall` `apply to all metered electricity delivered to Illinois` `retail customers by the alternative retail electric` `supplier pursuant to contracts executed or extended after` `March 15, 2009.` (b)``Compliance obligations.` ``(1) Through May 31, 2017, an `An``alternative retail` `electric supplier shall comply with the renewable energy` `portfolio standards by making an alternative compliance` `payment, as described in subsection (d) of this Section, to` `cover at least one-half of the alternative retail electric` `supplier's compliance obligation``for the period prior to` `June 1, 2017.` ``(2) For the delivery years beginning June 1, 2017 and` `June 1, 2018, an alternative retail electric supplier need` `not make any alternative compliance payment to meet any` `portion of its compliance obligation, as set forth in` `paragraph (3.5) of subsection (a) of this Section.` ``(3) An alternative retail electric supplier shall use `and``any one or combination of the following means to cover` `the remainder of the alternative retail electric` `supplier's compliance obligation``, as set forth in` `paragraphs (3) and (3.5) of subsection (a) of this Section,` `not covered by an alternative compliance payment made under` `paragraphs (1) and (2) of this subsection (b) of this` `Section``:` `(A) `(1)``Generating electricity using renewable` `energy resources identified pursuant to item (4) of` `subsection (a) of this Section.` `(B) `(2)``Purchasing electricity generated using` `renewable energy resources identified pursuant to item` `(4) of subsection (a) of this Section through an energy` `contract.` `(C) `(3)``Purchasing renewable energy credits from` `renewable energy resources identified pursuant to item` `(4) of subsection (a) of this Section.` `(D) `(4)``Making an alternative compliance payment` `as described in subsection (d) of this Section.` (c) Use of renewable energy credits.` ``(1) Renewable energy credits that are not used by an` `alternative retail electric supplier to comply with a` `renewable portfolio standard in a compliance year may be` `banked and carried forward up to 2 12-month compliance` `periods after the compliance period in which the credit was` `generated for the purpose of complying with a renewable` `portfolio standard in those 2 subsequent compliance` `periods. For the 2009-2010 and 2010-2011 compliance` `periods, an alternative retail electric supplier may use` `renewable credits generated after December 31, 2008 and` `before June 1, 2009 to comply with this Section.` ``(2) An alternative retail electric supplier is` `responsible for demonstrating that a renewable energy` `credit used to comply with a renewable portfolio standard` `is derived from a renewable energy resource and that the` `alternative retail electric supplier has not used, traded,` `sold, or otherwise transferred the credit.` ``(3) The same renewable energy credit may be used by an` `alternative retail electric supplier to comply with a` `federal renewable portfolio standard and a renewable` `portfolio standard established under this Act. An` `alternative retail electric supplier that uses a renewable` `energy credit to comply with a renewable portfolio standard` `imposed by any other state may not use the same credit to` `comply with a renewable portfolio standard established` `under this Act.` (d) Alternative compliance payments.` ``(1) The Commission shall establish and post on its` `website, within 5 business days after entering an order` `approving a procurement plan pursuant to Section 1-75 of` `the Illinois Power Agency Act, maximum alternative` `compliance payment rates, expressed on a per kilowatt-hour` `basis, that will be applicable in the first compliance` `period following the plan approval. A separate maximum` `alternative compliance payment rate shall be established` `for the service territory of each electric utility that is` `subject to subsection (c) of Section 1-75 of the Illinois` `Power Agency Act. Each maximum alternative compliance` `payment rate shall be equal to the maximum allowable annual` `estimated average net increase due to the costs of the` `utility's purchase of renewable energy resources included` `in the amounts paid by eligible retail customers in` `connection with electric service, as described in item (2)` `of subsection (c) of Section 1-75 of the Illinois Power` `Agency Act for the compliance period, and as established in` `the approved procurement plan. Following each procurement` `event through which renewable energy resources are` `purchased for one or more of these utilities for the` `compliance period, the Commission shall establish and post` `on its website estimates of the alternative compliance` `payment rates, expressed on a per kilowatt-hour basis, that` `shall apply for that compliance period. Posting of the` `estimates shall occur no later than 10 business days` `following the procurement event, however, the Commission` `shall not be required to establish and post such estimates` `more often than once per calendar month. By July 1 of each` `year, the Commission shall establish and post on its` `website the actual alternative compliance payment rates` `for the preceding compliance year. For compliance years` `beginning prior to June 1, 2014, each alternative` `compliance payment rate shall be equal to the total amount` `of dollars that the utility contracted to spend on` `renewable resources, excepting the additional incremental` `cost attributable to solar resources, for the compliance` `period divided by the forecasted load of eligible retail` `customers, at the customers' meters, as previously` `established in the Commission-approved procurement plan` `for that compliance year. For compliance years commencing` `on or after June 1, 2014, each alternative compliance` `payment rate shall be equal to the total amount of dollars` `that the utility contracted to spend on all renewable` `resources for the compliance period divided by the` `forecasted load of``eligible``retail customers``for which the` `utility is procuring renewable energy resources in a given` `delivery year``, at the customers' meters, as previously` `established in the Commission-approved procurement plan` `for that compliance year. The actual alternative` `compliance payment rates may not exceed the maximum` `alternative compliance payment rates established for the` `compliance period. For purposes of this subsection (d), the` `term "eligible retail customers" has the same meaning as` `found in Section 16-111.5 of this Act.` ``(2) In any given compliance year, an alternative retail` `electric supplier may elect to use alternative compliance` `payments to comply with all or a part of the applicable` `renewable portfolio standard. In the event that an` `alternative retail electric supplier elects to make` `alternative compliance payments to comply with all or a` `part of the applicable renewable portfolio standard, such` `payments shall be made by September 1, 2010 for the period` `of June 1, 2009 to May 1, 2010 and by September 1 of each` `year thereafter for the subsequent compliance period, in` `the manner and form as determined by the Commission. Any` `election by an alternative retail electric supplier to use` `alternative compliance payments is subject to review by the` `Commission under subsection (e) of this Section.` ``(3) An alternative retail electric supplier's` `alternative compliance payments shall be computed` `separately for each electric utility's service territory` `within which the alternative retail electric supplier` `provided retail service during the compliance period,` `provided that the electric utility was subject to` `subsection (c) of Section 1-75 of the Illinois Power Agency` `Act. For each service territory, the alternative retail` `electric supplier's alternative compliance payment shall` `be equal to (i) the actual alternative compliance payment` `rate established in item (1) of this subsection (d),` `multiplied by (ii) the actual amount of metered electricity` `delivered by the alternative retail electric supplier to` `retail customers``for which the supplier has a compliance` `obligation``within the service territory during the` `compliance period, multiplied by (iii) the result of one` `minus the ratios of the quantity of renewable energy` `resources used by the alternative retail electric supplier` `to comply with the requirements of this Section within the` `service territory to the product of the percentage of` `renewable energy resources required under item (3)``or (3.5) `of subsection (a) of this Section and the actual amount of` `metered electricity delivered by the alternative retail` `electrical `electric``supplier to retail customers``for which` `the supplier has a compliance obligation``within the service` `territory during the compliance period.` ``(4)``Through May 31, 2017, all `All``alternative` `compliance payments by alternative retail electric` `suppliers shall be deposited in the Illinois Power Agency` `Renewable Energy Resources Fund and used to purchase` `renewable energy credits, in accordance with Section 1-56` `of the Illinois Power Agency Act. Beginning April 1, 2012` `and by April 1 of each year thereafter, the Illinois Power` `Agency shall submit an annual report to the General` `Assembly, the Commission, and alternative retail electric` `suppliers that shall include, but not be limited to:` `(A) the total amount of alternative compliance` `payments received in aggregate from alternative retail` `electric suppliers by planning year for all previous` `planning years in which the alternative compliance` `payment was in effect;` `(B) the amount of those payments utilized to` `purchased renewable energy credits itemized by the` `date of each procurement in which the payments were` `utilized; and` `(C) the unused and remaining balance in the Agency` `Renewable Energy Resources Fund attributable to those` `payments.` ``(4.5) Beginning with the delivery year commencing June` `1, 2017, all alternative compliance payments by` `alternative retail electric suppliers shall be remitted to` `the applicable electric utility. To facilitate this` `remittance, each electric utility shall file a tariff with` `the Commission no later than 30 days following the` `effective date of this amendatory Act of the 99th General` `Assembly, which the Commission shall approve, after notice` `and hearing, no later than 45 days after its filing. The` `Illinois Power Agency shall use such payments to increase` `the amount of renewable energy resources otherwise to be` `procured under subsection (c) of Section 1-75 of the` `Illinois Power Agency Act. ``(5) The Commission, in consultation with the Illinois` `Power Agency, shall establish a process or proceeding to` `consider the impact of a federal renewable portfolio` `standard, if enacted, on the operation of the alternative` `compliance mechanism, which shall include, but not be` `limited to, developing, to the extent permitted by the` `applicable federal statute, an appropriate methodology to` `apportion renewable energy credits retired as a result of` `alternative compliance payments made in accordance with` `this Section. The Commission shall commence any such` `process or proceeding within 35 days after enactment of a` `federal renewable portfolio standard.` (e) Each alternative retail electric supplier shall, by` `September 1, 2010 and by September 1 of each year thereafter,` `prepare and submit to the Commission a report, in a format to` `be specified by the Commission``on or before December 31, 2009``,` `that provides information certifying compliance by the` `alternative retail electric supplier with this Section,` `including copies of all PJM-GATS and M-RETS reports, and` `documentation relating to banking, retiring renewable energy` `credits, and any other information that the Commission` `determines necessary to ensure compliance with this Section.` An alternative retail electric supplier may file` `commercially or financially sensitive information or trade` `secrets with the Commission as provided under the rules of the` `Commission. To be filed confidentially, the information shall` `be accompanied by an affidavit that sets forth both the reasons` `for the confidentiality and a public synopsis of the` `information.` (f) The Commission may initiate a contested case to review` `allegations that the alternative retail electric supplier has` `violated this Section, including an order issued or rule` `promulgated under this Section. In any such proceeding, the` `alternative retail electric supplier shall have the burden of` `proof. If the Commission finds, after notice and hearing, that` `an alternative retail electric supplier has violated this` `Section, then the Commission shall issue an order requiring the` `alternative retail electric supplier to:` ``(1) immediately comply with this Section; and` ``(2) if the violation involves a failure to procure the` `requisite quantity of renewable energy resources or pay the` `applicable alternative compliance payment by the annual` `deadline, the Commission shall require the alternative` `retail electric supplier to double the applicable` `alternative compliance payment that would otherwise be` `required to bring the alternative retail electric supplier` `into compliance with this Section.` If an alternative retail electric supplier fails to comply` `with the renewable energy resource portfolio requirement in` `this Section more than once in a 5-year period, then the` `Commission shall revoke the alternative electric supplier's` `certificate of service authority. The Commission shall not` `accept an application for a certificate of service authority` `from an alternative retail electric supplier that has lost` `certification under this subsection (f), or any corporate` `affiliate thereof, for at least one year after the date of` `revocation.` (g) All of the provisions of this Section apply to electric` `utilities operating outside their service area except under` `item (2) of subsection (a) of this Section the quantity of` `renewable energy resources shall be measured as a percentage of` `the actual amount of electricity (megawatt-hours) supplied in` `the State outside of the utility's service territory during the` `12-month period June 1 through May 31, commencing June 1, 2009,` `and the comparable 12-month period in each year thereafter` `except as provided in item (6) of subsection (a) of this` `Section.` If any such utility fails to procure the requisite quantity` `of renewable energy resources by the annual deadline, then the` `Commission shall require the utility to double the alternative` `compliance payment that would otherwise be required to bring` `the utility into compliance with this Section.` If any such utility fails to comply with the renewable` `energy resource portfolio requirement in this Section more than` `once in a 5-year period, then the Commission shall order the` `utility to cease all sales outside of the utility's service` `territory for a period of at least one year.` (h) The provisions of this Section and the provisions of` `subsection (d) of Section 16-115 of this Act relating to` `procurement of renewable energy resources shall not apply to an` `alternative retail electric supplier that operates a combined` `heat and power system in this State or that has a corporate` `affiliate that operates such a combined heat and power system` `in this State that supplies electricity primarily to or for the` `benefit of: (i) facilities owned by the supplier, its` `subsidiary, or other corporate affiliate; (ii) facilities` `electrically integrated with the electrical system of` `facilities owned by the supplier, its subsidiary, or other` `corporate affiliate; or (iii) facilities that are adjacent to` `the site on which the combined heat and power system is` `located. (i) The obligations of alternative retail electric` `suppliers and electric utilities operating outside their` `service territories to procure renewable energy resources,` `make alternative compliance payments, and file annual reports,` `and the obligations of the Commission to determine and post` `alternative compliance payment rates, shall terminate after` `May 31, 2019, provided that alternative retail electric` `suppliers and electric utilities operating outside their` `service territories shall be obligated to make all alternative` `compliance payments that they were obligated to pay for periods` `through and including May 31, 2019, but were not paid as of` `that date. The Commission shall continue to enforce the payment` `of unpaid alternative compliance payments in accordance with` `subsections (f) and (g) of this Section. All alternative` `compliance payments made after May 31, 2016 shall be remitted` `to the applicable electric utility and used to purchase` `renewable energy credits, in accordance with Section 1-75 of` `the Illinois Power Agency Act.` This subsection (i) is intended to accommodate the` `transition to the procurement of renewable energy resources for` `all retail customers in the amounts specified under subsection` `(c) of Section 1-75 of the Illinois Power Agency Act and` `Section 16-111.5 of this Act, including but not limited to the` `transition to a single charge applicable to all retail` `customers to recover the costs of these resources. Each` `alternative retail electric supplier shall certify in its` `annual reports filed pursuant to subsection (e) of this Section` `after May 31, 2019, that its retail customers are not paying` `the costs of alternative compliance payments or renewable` `energy resources that the alternative retail electric supplier` `is not required to remit or purchase under this Section. The` `Commission shall have the authority to initiate an emergency` `rulemaking to adopt rules regarding such certification. `(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;` `96-1437, eff. 8-17-10; 97-658, eff. 1-13-12.)` (220 ILCS 5/16-119A) ` Sec. 16-119A.``Functional separation. (a) Within 90 days after the effective date of this` `amendatory Act of 1997, the Commission shall open a rulemaking` `proceeding to establish standards of conduct for every electric` `utility described in subsection (b). To create efficient` `competition between suppliers of generating services and` `sellers of such services at retail and wholesale, the rules` `shall allow all customers of a public utility that distributes` `electric power and energy to purchase electric power and energy` `from the supplier of their choice in accordance with the` `provisions of Section 16-104. In addition, the rules shall` `address relations between providers of any 2 services described` `in subsection (b) to prevent undue discrimination and promote` `efficient competition. Provided, however, that a proposed rule` `shall not be published prior to May 15, 1999. (b) The Commission shall also have the authority to` `investigate the need for, and adopt rules requiring, functional` `separation between the generation services and the delivery` `services of those electric utilities whose principal service` `area is in Illinois as necessary to meet the objective of` `creating efficient competition between suppliers of generating` `services and sellers of such services at retail and wholesale.` `After January 1, 2003, the Commission shall also have the` `authority to investigate the need for, and adopt rules` `requiring, functional separation between an electric utility's` `competitive and non-competitive services. (b-5) If there is a change in ownership of a majority of` `the voting capital stock of an electric utility or the` `ownership or control of any entity that owns or controls a` `majority of the voting capital stock of an electric utility,` `the electric utility shall have the right to file with the` `Commission a new plan. The newly filed plan shall supersede any` `plan previously approved by the Commission pursuant to this` `Section for that electric utility, subject to Commission` `approval. This subsection only applies to the extent that the` `Commission rules for the functional separation of delivery` `services and generation services provide an electric utility` `with the ability to select from 2 or more options to comply` `with this Section. The electric utility may file its revised` `plan with the Commission up to one calendar year after the` `conclusion of the sale, purchase, or any other transfer of` `ownership described in this subsection. In all other respects,` `an electric utility must comply with the Commission rules in` `effect under this Section. The Commission may promulgate rules` `to implement this subsection. This subsection shall have no` `legal effect after January 1, 2005. (c) In establishing or considering the need for rules under` `subsections (a) and (b), the Commission shall take into account` `the effects on the cost and reliability of service and the` `obligation of the utility to provide bundled service under this` `Act. The Commission shall adopt rules that are a cost effective` `means to ensure compliance with this Section. (d) Nothing in this Section shall be construed as imposing` `any requirements or obligations that are in conflict with` `federal law. (e) Notwithstanding anything to the contrary, an electric` `utility may market and promote the services, rates and programs` `authorized by Sections 16-107, and 16-108.6 of this Act.` `(Source: P.A. 92-756, eff. 8-2-02.) (220 ILCS 5/16-127) `` Sec. 16-127.``Environmental disclosure. (a) Effective January 1, 2013, every electric utility and` `alternative retail electric supplier shall provide the` `following information, to the maximum extent practicable, to` `its customers on a quarterly basis: `` ``(i) the known sources of electricity supplied,` `broken-out by percentages, of biomass power, coal-fired` `power, hydro power, natural gas-fired power, nuclear` `power, oil-fired power, solar power, wind power and other` `resources, respectively; `` ``(ii) a``pie chart `pie-chart``that graphically depicts the` `percentages of the sources of the electricity supplied as` `set forth in subparagraph (i) of this subsection;``and ``(iii) a``pie chart `pie-chart``that graphically depicts` `the quantity of renewable energy resources procured` `pursuant to Section 1-75 of the Illinois Power Agency Act` `as a percentage of electricity supplied to serve eligible` `retail customers as defined in Section 16-111.5(a) of this` `Act``; and``.` ``(iv) after May, 31, 2017, a pie chart that graphically` `depicts the quantity of zero emission credits from zero` `emission facilities procured under Section 1-75 of the` `Illinois Power Agency Act as a percentage of the actual` `load of retail customers within its service area. (b) In addition, every electric utility and alternative` `retail electric supplier shall provide, to the maximum extent` `practicable, to its customers on a quarterly basis, a` `standardized chart in a format to be determined by the` `Commission in a rule following notice and hearings which` `provides the amounts of carbon dioxide, nitrogen oxides and` `sulfur dioxide emissions and nuclear waste attributable to the` `known sources of electricity supplied as set forth in` `subparagraph (i) of subsection (a) of this Section. (c) The electric utilities and alternative retail electric` `suppliers may provide their customers with such other` `information as they believe relevant to the information` `required in subsections (a) and (b) of this Section. All of the` `information required in subsections (a) and (b) of this Section` `shall be made available by the electric utilities or` `alternative retail electric suppliers either in an electronic` `medium, such as on a website or by electronic mail, or through` `the U.S. Postal Service. (d) For the purposes of subsection (a) of this Section,` `"biomass" means dedicated crops grown for energy production and` `organic wastes. (e) All of the information provided in subsections (a) and` `(b) of this Section shall be presented to the Commission for` `inclusion in its World Wide Web Site. `(Source: P.A. 97-1092, eff. 1-1-13.) (220 ILCS 5/16-128A)` Sec. 16-128A.``Certification of installers, maintainers, or` `repairers.` (a) Within 18 months of the effective date of this` `amendatory Act of the 97th General Assembly, the Commission` `shall adopt rules, including emergency rules, establishing` `certification requirements ensuring that entities installing` `distributed generation facilities are in compliance with the` `requirements of subsection (a) of Section 16-128 of this Act.` For purposes of this Section, the phrase "entities` `installing distributed generation facilities" shall include,` `but not be limited to, all entities that are exempt from the` `definition of "alternative retail electric supplier" under` `item (v) of Section 16-102 of this Act. For purposes of this` `Section, the phrase "self-installer" means an individual who` `(i) leases or purchases a cogeneration facility for his or her` `own personal use and (ii) installs such cogeneration or` `self-generation facility on his or her own premises without the` `assistance of any other person.` (b) In addition to any authority granted to the Commission` `under this Act, the Commission is also authorized to: (1)` `determine which entities are subject to certification under` `this Section; (2) impose reasonable certification fees and` `penalties; (3) adopt disciplinary procedures; (4) investigate` `any and all activities subject to this Section, including` `violations thereof; (5) adopt procedures to issue or renew, or` `to refuse to issue or renew, a certification or to revoke,` `suspend, place on probation, reprimand, or otherwise` `discipline a certified entity under this Act or take other` `enforcement action against an entity subject to this Section;` `and (6) prescribe forms to be issued for the administration and` `enforcement of this Section.` (c) No electric utility shall provide a retail customer` `with net metering service related to interconnection of that` `customer's distributed generation facility unless the customer` `provides the electric utility with (i) a certification that the` `customer installing the distributed generation facility was a` `self-installer or (ii) evidence that the distributed` `generation facility was installed by an entity certified under` `this Section that is also in good standing with the Commission.` `For purposes of this subsection, a retail customer includes` `that customer's employees, officers, and agents. An electric` `utility shall file a tariff or tariffs with the Commission` `setting forth the documentation, as specified by Commission` `rule, that a retail customer must provide to an electric` `utility. The provisions of this subsection (c) shall apply on` `or after the effective date of the Commission's rules` `prescribed pursuant to subsection (a) of this Section.` (d) Within 180 days after the effective date of this` `amendatory Act of the 97th General Assembly, the Commission` `shall initiate a rulemaking proceeding to establish` `certification requirements that shall be applicable to persons` `or entities that install, maintain, or repair electric vehicle` `charging stations. The notification and certification` `requirements of this Section shall only be applicable to` `individuals or entities that perform work on or within an` `electric vehicle charging station, including, but not limited` `to, connection of power to an electric vehicle charging` `station.` For the purposes of this Section "electric vehicle charging` `station" means any facility or equipment that is used to charge` `a battery or other energy storage device of an electric` `vehicle. Rules regulating the installation, maintenance, or repair` `of electric vehicle charging stations, in which the Commission` `may establish separate requirements based upon the` `characteristics of electric vehicle charging stations, so long` `as it is in accordance with the requirements of subsection (a)` `of Section 16-128 and Section 16-128A of this Act, shall:` ``(1) establish a certification process for persons or` `entities that install, maintain, or repair of electric` `vehicle charging stations;` ``(2) require persons or entities that install,` `maintain, or repair electric vehicle stations to be` `certified to do business and to be bonded in the State;` ``(3) ensure that persons or entities that install,` `maintain, or repair electric vehicle charging stations` `have the requisite knowledge, skills, training,` `experience, and competence to perform functions in a safe` `and reliable manner as required under subsection (a) of` `Section 16-128 of this Act;` ``(4) impose reasonable certification fees and penalties` `on persons or entities that install, maintain, or repair of` `electric vehicle charging stations for noncompliance of` `the rules adopted under this subsection;` ``(5) ensure that all persons or entities that install,` `maintain, or repair electric vehicle charging stations` `conform to applicable building and electrical codes;` ``(6) ensure that all electric vehicle charging stations` `meet recognized industry standards as the Commission deems` `appropriate, such as the National Electric Code (NEC) and` `standards developed or created by the Institute of` `Electrical and Electronics Engineers (IEEE), the Electric` `Power Research Institute (EPRI), the Detroit Edison` `Institute (DTE), the Underwriters Laboratory (UL), the` `Society of Automotive Engineers (SAE), and the National` `Institute of Standards and Technology (NIST);` ``(7) include any additional requirements that the` `Commission deems reasonable to ensure that persons or` `entities that install, maintain, or repair electric` `vehicle charging stations meet adequate training,` `financial, and competency requirements;` ``(8) ensure that the obligations required under this` `Section and subsection (a) of Section 16-128 of this Act` `are met prior to the interconnection of any electric` `vehicle charging station;` ``(9) ensure electric vehicle charging stations` `installed by a self-installer are not used for any` `commercial purpose;` ``(10) establish an inspection procedure for the` `conversion of electric vehicle charging stations installed` `by a self-installer if it is determined that the` `self-installed electric vehicle charging station is being` `used for commercial purposes;` ``(11) establish the requirement that all persons or` `entities that install electric vehicle charging stations` `shall notify the servicing electric utility in writing of` `plans to install an electric vehicle charging station and` `shall notify the servicing electric utility in writing when` `installation is complete;` ``(12) ensure that all persons or entities that install,` `maintain, or repair electric vehicle charging stations` `obtain certificates of insurance in sufficient amounts and` `coverages that the Commission so determines and, if` `necessary as determined by the Commission, names the` `affected public utility as an additional insured; and` ``(13) identify and determine the training or other` `programs by which persons or entities may obtain the` `requisite training, skills, or experience necessary to` `achieve and maintain compliance with the requirements set` `forth in this subsection and subsection (a) of Section` `16-128 to install, maintain, or repair electric vehicle` `charging stations.` Within 18 months after the effective date of this` `amendatory Act of the 97th General Assembly, the Commission` `shall adopt rules, and may, if it deems necessary, adopt` `emergency rules, for the installation, maintenance, or repair` `of electric vehicle charging stations.` All retail customers who own, maintain, or repair an` `electric vehicle charging station shall provide the servicing` `electric utility (i) a certification that the customer` `installing the electric vehicle charging station was a` `self-installer or (ii) evidence that the electric vehicle` `charging station was installed by an entity certified under` `this subsection (d) that is also in good standing with the` `Commission. For purposes of this subsection (d), a retail` `customer includes that retail customer's employees, officers,` `and agents. If the electric vehicle charging station was not` `installed by a self-installer, then the person or entity that` `plans to install the electric vehicle charging station shall` `provide notice to the servicing electric utility prior to` `installation and when installation is complete and provide any` `other information required by the Commission's rules` `established under subsection (d) of this Section. An electric` `utility shall file a tariff or tariffs with the Commission` `setting forth the documentation, as specified by Commission` `rule, that a retail customer who owns, uses, operates, or` `maintains an electric vehicle charging station must provide to` `an electric utility.` For the purposes of this subsection, an electric vehicle` `charging station shall constitute a distribution facility or` `equipment as that term is used in subsection (a) of Section` `16-128 of this Act. The phrase "self-installer" means an` `individual who (i) leases or purchases an electric vehicle` `charging station for his or her own personal use and (ii)` `installs an electric vehicle charging station on his or her own` `premises without the assistance of any other person.` (e) Fees and penalties collected under this Section shall` `be deposited into the Public Utility Fund and used to fund the` `Commission's compliance with the obligations imposed by this` `Section.` (f) The rules established under subsection (d) of this` `Section shall specify the initial dates for compliance with the` `rules.` (g)``Within 18 months of the effective date of this` `amendatory Act of the 99th General Assembly, the Commission` `shall adopt rules, including emergency rules, establishing a` `process for entities installing a new utility-scale wind` `project or a new utility-scale solar project to certify` `compliance with the requirements of this Section. For purposes` `of this Section, the phrase "entities installing a new` `utility-scale wind project or a new utility-scale solar` `project" shall include, but is not limited to, any entity` `installing new wind projects or new photovoltaic projects as` `such terms are defined in subsection (c) of Section 1-75 of the` `Illinois Power Agency Act.` The process shall include an option to complete the` `certification electronically by completing forms on-line. An` `entity installing a new utility-scale wind project or a new` `utility-scale solar project shall be permitted to complete` `certification after the subject work has been completed. The` `Commission shall maintain on its website a list of entities` `installing new utility-scale wind projects or new` `utility-scale solar projects measures that have successfully` `completed the certification process.` (h) In addition to any authority granted to the Commission` `under this Act, the Commission is also authorized to: (1)` `determine which entities are subject to certification under` `subsection (g) of this Section; (2) impose reasonable` `certification fees and penalties; (3) adopt disciplinary` `procedures; (4) investigate any and all activities subject to` `subsection (g) or this subsection (h) of this Section,` `including violations thereof; (5) adopt procedures to issue or` `renew, or to refuse to issue or renew, a certification or to` `revoke, suspend, place on probation, reprimand, or otherwise` `discipline a certified entity under subsection (g) of this` `Section or take other enforcement action against an entity` `subject to subsection (g) or this subsection (h) of this` `Section; (6) prescribe forms to be issued for the` `administration and enforcement of subsection (g) and this` `subsection (h) of this Section; and (7) establish requirements` `to ensure that entities installing a new wind project or a new` `photovoltaic project have the requisite knowledge, skills,` `training, experience, and competence to perform in a safe and` `reliable manner as required by subsection (a) of Section 16-128` `of this Act. (i)``The certification of persons or entities that install,` `maintain, or repair``new wind projects, new photovoltaic` `projects,``distributed generation facilities``,``and electric` `vehicle charging stations as set forth in this Section is an` `exclusive power and function of the State. A home rule unit or` `other units of local government authority may subject persons` `or entities that install, maintain, or repair``new wind` `projects, new photovoltaic projects,``distributed generation` `facilities``,``or electric vehicle charging stations as set forth` `in this Section to any applicable local licensing, siting, and` `permitting requirements otherwise permitted under law so long` `as only Commission-certified persons or entities are` `authorized to install, maintain, or repair``new wind projects,` `new photovoltaic projects,``distributed generation facilities``, `or electric vehicle charging stations. This Section is a` `limitation under subsection (h) of Section 6 of Article VII of` `the Illinois Constitution on the exercise by home rule units of` `powers and functions exclusively exercised by the State.` `(Source: P.A. 97-616, eff. 10-26-11; 97-1128, eff. 8-28-12.)` (220 ILCS 5/16-128B new)` Sec. 16-128B.``Qualified energy efficiency installers.` (a) Within 18 months after the effective date of this` `amendatory Act of the 99th General Assembly, the Commission` `shall adopt rules, including emergency rules, establishing a` `process for entities installing energy efficiency measures to` `certify compliance with the requirements of this Section.` The process shall include an option to complete the` `certification electronically by completing forms on-line. An` `entity installing energy efficiency measures shall be` `permitted to complete the certification after the subject work` `has been completed.` The Commission shall maintain on its website a list of` `entities installing energy efficiency measures that have` `successfully completed the certification process.` (b) In addition to any authority granted to the Commission` `under this Act, the Commission may:` ``(1) determine which entities are subject to` `certification under this Section;` ``(2) impose reasonable certification fees and` `penalties;` ``(3) adopt disciplinary procedures;` ``(4) investigate any and all activities subject to this` `Section, including violations thereof;` ``(5) adopt procedures to issue or renew, or to refuse to` `issue or renew, a certification or to revoke, suspend,` `place on probation, reprimand, or otherwise discipline a` `certified entity under this Act or take other enforcement` `action against an entity subject to this Section; and` ``(6) prescribe forms to be issued for the administration` `and enforcement of this Section.` (c) An electric utility may not provide a retail customer` `with a rebate or other energy efficiency incentive for a` `measure that exceeds a minimal amount determined by the` `Commission unless the customer provides the electric utility` `with (1) a certification that the person installing the energy` `efficiency measure was a self-installer; or (2) evidence that` `the energy efficiency measure was installed by an entity` `certified under this Section that is also in good standing with` `the Commission.` (d) The Commission shall:` ``(1) require entities installing energy efficiency` `measures to be certified to do business and to be bonded in` `this State;` ``(2) ensure that entities installing energy efficiency` `measures have the requisite knowledge, skill, training,` `experience, and competence to perform functions in a safe` `and reliable manner as required under subsection (a) of` `Section 16-128 of this Act;` ``(3) ensure that entities installing energy efficiency` `measures conform to applicable building and electrical` `codes;` ``(4) ensure that all entities installing energy` `efficiency measures meet recognized industry standards as` `the Commission deems appropriate;` ``(5) include any additional requirements that the` `Commission deems reasonable to ensure that entities` `installing energy efficiency measures meet adequate` `training, financial, and competency requirements;` ``(6) ensure that all entities installing energy` `efficiency measures obtain certificates of insurance in` `sufficient amounts and coverages that the Commission so` `determines; and` ``(7) identify and determine the training or other` `programs by which persons or entities may obtain the` `requisite training, skill, or experience necessary to` `achieve and maintain compliance with the requirements of` `this Section.` (e) Fees and penalties collected under this Section shall` `be deposited into the Public Utility Fund and used to fund the` `Commission's compliance with the obligations imposed by this` `Section.` (f) The rules adopted under this Section shall specify the` `initial dates for compliance with the rules.` (g) For purposes of this Section, entities installing` `energy efficiency measures shall endeavor to support the` `diversity goals of this State by attracting, developing,` `retaining, and providing opportunities to employees of all` `backgrounds and by supporting female-owned, minority-owned,` `veteran-owned, and small businesses.` Section 20.``The Energy Assistance Act is amended by` `changing Sections 13 and 18 as follows:` ` (305 ILCS 20/13) ` (Section scheduled to be repealed on December 31, 2018)` Sec. 13.``Supplemental Low-Income Energy Assistance Fund. (a) The Supplemental Low-Income Energy Assistance Fund is` `hereby created as a special fund in the State Treasury. The` `Supplemental Low-Income Energy Assistance Fund is authorized` `to receive moneys from voluntary donations from individuals,` `foundations, corporations, and other sources, moneys received` `pursuant to Section 17, and, by statutory deposit, the moneys` `collected pursuant to this Section. The Fund is also authorized` `to receive voluntary donations from individuals, foundations,` `corporations, and other sources, as well as contributions made` `in accordance with Section 507MM of the Illinois Income Tax` `Act. Subject to appropriation, the Department shall use moneys` `from the Supplemental Low-Income Energy Assistance Fund for` `payments to electric or gas public utilities, municipal` `electric or gas utilities, and electric cooperatives on behalf` `of their customers who are participants in the program` `authorized by Sections 4 and 18 of this Act, for the provision` `of weatherization services and for administration of the` `Supplemental Low-Income Energy Assistance Fund. The yearly` `expenditures for weatherization may not exceed 10% of the` `amount collected during the year pursuant to this Section. The` `yearly administrative expenses of the Supplemental Low-Income` `Energy Assistance Fund may not exceed 10% of the amount` `collected during that year pursuant to this Section, except` `when unspent funds from the Supplemental Low-Income Energy` `Assistance Fund are reallocated from a previous year; any` `unspent balance of the 10% administrative allowance may be` `utilized for administrative expenses in the year they are` `reallocated. (b) Notwithstanding the provisions of Section 16-111 of the` `Public Utilities Act but subject to subsection (k) of this` `Section, each public utility, electric cooperative, as defined` `in Section 3.4 of the Electric Supplier Act, and municipal` `utility, as referenced in Section 3-105 of the Public Utilities` `Act, that is engaged in the delivery of electricity or the` `distribution of natural gas within the State of Illinois shall,` `effective January 1, 1998, assess each of its customer accounts` `a monthly Energy Assistance Charge for the Supplemental` `Low-Income Energy Assistance Fund. The delivering public` `utility, municipal electric or gas utility, or electric or gas` `cooperative for a self-assessing purchaser remains subject to` `the collection of the fee imposed by this Section. The monthly` `charge shall be as follows: ``(1) $0.48 per month on each account for residential` `electric service; ``(2) $0.48 per month on each account for residential gas` `service; ``(3) $4.80 per month on each account for non-residential` `electric service which had less than 10 megawatts of peak` `demand during the previous calendar year; ``(4) $4.80 per month on each account for non-residential` `gas service which had distributed to it less than 4,000,000` `therms of gas during the previous calendar year; ``(5) $360 per month on each account for non-residential` `electric service which had 10 megawatts or greater of peak` `demand during the previous calendar year; and ``(6) $360 per month on each account for non-residential` `gas service which had 4,000,000 or more therms of gas` `distributed to it during the previous calendar year.` The incremental change to such charges imposed by this` `amendatory Act of the 96th General Assembly shall not (i) be` `used for any purpose other than to directly assist customers` `and (ii) be applicable to utilities serving less than 100,000` `customers in Illinois on January 1, 2009.` In addition, electric and gas utilities have committed, and` `shall contribute, a one-time payment of $22 million to the` `Fund, within 10 days after the effective date of the tariffs` `established pursuant to Sections 16-111.8 and 19-145 of the` `Public Utilities Act to be used for the Department's cost of` `implementing the programs described in Section 18 of this` `amendatory Act of the 96th General Assembly, the Arrearage` `Reduction Program described in Section 18, and the programs` `described in Section 8-105 of the Public Utilities Act. If a` `utility elects not to file a rider within 90 days after the` `effective date of this amendatory Act of the 96th General` `Assembly, then the contribution from such utility shall be made` `no later than February 1, 2010. (c) For purposes of this Section: ``(1) "residential electric service" means electric` `utility service for household purposes delivered to a` `dwelling of 2 or fewer units which is billed under a` `residential rate, or electric utility service for` `household purposes delivered to a dwelling unit or units` `which is billed under a residential rate and is registered` `by a separate meter for each dwelling unit; ``(2) "residential gas service" means gas utility` `service for household purposes distributed to a dwelling of` `2 or fewer units which is billed under a residential rate,` `or gas utility service for household purposes distributed` `to a dwelling unit or units which is billed under a` `residential rate and is registered by a separate meter for` `each dwelling unit; ``(3) "non-residential electric service" means electric` `utility service which is not residential electric service;` `and ``(4) "non-residential gas service" means gas utility` `service which is not residential gas service. (d) Within 30 days after the effective date of this` `amendatory Act of the 96th General Assembly, each public` `utility engaged in the delivery of electricity or the` `distribution of natural gas shall file with the Illinois` `Commerce Commission tariffs incorporating the Energy` `Assistance Charge in other charges stated in such tariffs,` `which shall become effective no later than the beginning of the` `first billing cycle following such filing. (e) The Energy Assistance Charge assessed by electric and` `gas public utilities shall be considered a charge for public` `utility service. (f) By the 20th day of the month following the month in` `which the charges imposed by the Section were collected, each` `public utility, municipal utility, and electric cooperative` `shall remit to the Department of Revenue all moneys received as` `payment of the Energy Assistance Charge on a return prescribed` `and furnished by the Department of Revenue showing such` `information as the Department of Revenue may reasonably` `require; provided, however, that a utility offering an` `Arrearage Reduction Program``or Supplemental Arrearage` `Reduction Program``pursuant to Section 18 of this Act shall be` `entitled to net those amounts necessary to fund and recover the` `costs of such``Programs `Program``as authorized by that Section` `that is no more than the incremental change in such Energy` `Assistance Charge authorized by``Public Act 96-33 `this` `amendatory Act of the 96th General Assembly``. If a customer` `makes a partial payment, a public utility, municipal utility,` `or electric cooperative may elect either: (i) to apply such` `partial payments first to amounts owed to the utility or` `cooperative for its services and then to payment for the Energy` `Assistance Charge or (ii) to apply such partial payments on a` `pro-rata basis between amounts owed to the utility or` `cooperative for its services and to payment for the Energy` `Assistance Charge. (g) The Department of Revenue shall deposit into the` `Supplemental Low-Income Energy Assistance Fund all moneys` `remitted to it in accordance with subsection (f) of this` `Section; provided, however, that the amounts remitted by each` `utility shall be used to provide assistance to that utility's` `customers. The utilities shall coordinate with the Department` `to establish an equitable and practical methodology for` `implementing this subsection (g) beginning with the 2010` `program year. (h) On or before December 31, 2002, the Department shall` `prepare a report for the General Assembly on the expenditure of` `funds appropriated from the Low-Income Energy Assistance Block` `Grant Fund for the program authorized under Section 4 of this` `Act. (i) The Department of Revenue may establish such rules as` `it deems necessary to implement this Section. (j) The Department of Commerce and Economic Opportunity may` `establish such rules as it deems necessary to implement this` `Section. (k) The charges imposed by this Section shall only apply to` `customers of municipal electric or gas utilities and electric` `or gas cooperatives if the municipal electric or gas utility or` `electric or gas cooperative makes an affirmative decision to` `impose the charge. If a municipal electric or gas utility or an` `electric cooperative makes an affirmative decision to impose` `the charge provided by this Section, the municipal electric or` `gas utility or electric cooperative shall inform the Department` `of Revenue in writing of such decision when it begins to impose` `the charge. If a municipal electric or gas utility or electric` `or gas cooperative does not assess this charge, the Department` `may not use funds from the Supplemental Low-Income Energy` `Assistance Fund to provide benefits to its customers under the` `program authorized by Section 4 of this Act. In its use of federal funds under this Act, the Department` `may not cause a disproportionate share of those federal funds` `to benefit customers of systems which do not assess the charge` `provided by this Section. This Section is repealed``on January 1, 2025 `effective` `December 31, 2018``unless renewed by action of the General` `Assembly.``The General Assembly shall consider the results of` `the evaluations described in Section 8 in its deliberations. `(Source: P.A. 98-429, eff. 8-16-13; 99-457, eff. 1-1-16``.) (305 ILCS 20/18) Sec. 18.``Financial assistance; payment plans.` (a) The Percentage of Income Payment Plan (PIPP or PIP` `Plan) is hereby created as a mandatory bill payment assistance` `program for low-income residential customers of utilities` `serving more than 100,000 retail customers as of January 1,` `2009. The PIP Plan will:` ``(1) bring participants' gas and electric bills into the` `range of affordability;` ``(2) provide incentives for participants to make timely` `payments;` ``(3) encourage participants to reduce usage and` `participate in conservation and energy efficiency measures` `that reduce the customer's bill and payment requirements;` `and` ``(4) identify participants whose homes are most in need` `of weatherization.` (b) For purposes of this Section:` ``(1) "LIHEAP" means the energy assistance program` `established under the Illinois Energy Assistance Act and` `the Low-Income Home Energy Assistance Act of 1981.` ``(2) "Plan participant" is an eligible participant who` `is also eligible for the PIPP and who will receive either a` `percentage of income payment credit under the PIPP criteria` `set forth in this Act or a benefit pursuant to Section 4 of` `this Act. Plan participants are a subset of eligible` `participants.` ``(3) "Pre-program arrears" means the amount a plan` `participant owes for gas or electric service at the time` `the participant is determined to be eligible for the PIPP` `or the program set forth in Section 4 of this Act.` ``(4) "Eligible participant" means any person who has` `applied for, been accepted and is receiving residential` `service from a gas or electric utility and who is also` `eligible for LIHEAP.` (c) The PIP Plan shall be administered as follows:` ``(1) The Department shall coordinate with Local` `Administrative Agencies (LAAs), to determine eligibility` `for the Illinois Low Income Home Energy Assistance Program` `(LIHEAP) pursuant to the Energy Assistance Act, provided` `that eligible income shall be no more than 150% of the` `poverty level. Applicants will be screened to determine` `whether the applicant's projected payments for electric` `service or natural gas service over a 12-month period` `exceed the criteria established in this Section. To` `maintain the financial integrity of the program, the` `Department may limit eligibility to households with income` `below 125% of the poverty level.` ``(2) The Department shall establish the percentage of` `income formula to determine the amount of a monthly credit,` `not to exceed $150 per month per household, not to exceed` `$1,800 annually, that will be applied to PIP Plan` `participants' utility bills based on the portion of the` `bill that is the responsibility of the participant provided` `that the percentage shall be no more than a total of 6% of` `the relevant income for gas and electric utility bills` `combined, but in any event no less than $10 per month,` `unless the household does not pay directly for heat, in` `which case its payment shall be 2.4% of income but in any` `event no less than $5 per month. The Department may` `establish a minimum credit amount based on the cost of` `administering the program and may deny credits to otherwise` `eligible participants if the cost of administering the` `credit exceeds the actual amount of any monthly credit to a` `participant. If the participant takes both gas and electric` `service, 66.67% of the credit shall be allocated to the` `entity that provides the participant's primary energy` `supply for heating. Each participant shall enter into a` `levelized payment plan for, as applicable, gas and electric` `service and such plans shall be implemented by the utility` `so that a participant's usage and required payments are` `reviewed and adjusted regularly, but no more frequently` `than quarterly. Nothing in this Section is intended to` `prohibit a customer, who is otherwise eligible for LIHEAP,` `from participating in the program described in Section 4 of` `this Act. Eligible participants who receive such a benefit` `shall be considered plan participants and shall be eligible` `to participate in the Arrearage Reduction Program` `described in item (5) of this subsection (c).` ``(3) The Department shall remit, through the LAAs, to` `the utility or participating alternative supplier that` `portion of the plan participant's bill that is not the` `responsibility of the participant. In the event that the` `Department fails to timely remit payment to the utility,` `the utility shall be entitled to recover all costs related` `to such nonpayment through the automatic adjustment clause` `tariffs established pursuant to Section 16-111.8 and` `Section 19-145 of the Public Utilities Act. For purposes of` `this item (3) of this subsection (c), payment is due on the` `date specified on the participant's bill. The Department,` `the Department of Revenue and LAAs shall adopt processes` `that provide for the timely payment required by this item` `(3) of this subsection (c).` ``(4) A plan participant is responsible for all actual` `charges for utility service in excess of the PIPP credit.` `Pre-program arrears that are included in the Arrearage` `Reduction Program described in item (5) of this subsection` `(c) shall not be included in the calculation of the` `levelized payment plan. Emergency or crisis assistance` `payments shall not affect the amount of any PIPP credit to` `which a participant is entitled.` ``(5) Electric and gas utilities subject to this Section` `shall implement an Arrearage Reduction Program (ARP) for` `plan participants as follows: for each month that a plan` `participant timely pays his or her utility bill, the` `utility shall apply a credit to a portion of the` `participant's pre-program arrears, if any, equal to` `one-twelfth of such arrearage provided that the total` `amount of arrearage credits shall equal no more than $1,000` `annually for each participant for gas and no more than` `$1,000 annually for each participant for electricity. In` `the third year of the PIPP, the Department, in consultation` `with the Policy Advisory Council established pursuant to` `Section 5 of this Act, shall determine by rule an` `appropriate per participant total cap on such amounts, if` `any. Those plan participants participating in the ARP shall` `not be subject to the imposition of any additional late` `payment fees on pre-program arrears covered by the ARP. In` `all other respects, the utility shall bill and collect the` `monthly bill of a plan participant pursuant to the same` `rules, regulations, programs and policies as applicable to` `residential customers generally. Participation in the` `Arrearage Reduction Program shall be limited to the maximum` `amount of funds available as set forth in subsection (f) of` `Section 13 of this Act. In the event any donated funds` `under Section 13 of this Act are specifically designated` `for the purpose of funding the ARP, the Department shall` `remit such amounts to the utilities upon verification that` `such funds are needed to fund the ARP.``Nothing in this` `Section shall preclude a utility from continuing to` `implement, and apply credits under, an ARP in the event` `that the PIPP or LIHEAP is suspended due to lack of funding` `such that the plan participant does not receive a benefit` `under either the PIPP or LIHEAP.` ``(5.5) In addition to the ARP described in paragraph (5)` `of this subsection (c), utilities may also implement a` `Supplemental Arrearage Reduction Program (SARP) for` `eligible participants who are not able to become plan` `participants due to PIPP timing or funding constraints. If` `a utility elects to implement a SARP, it shall be` `administered as follows: for each month that a SARP` `participant timely pays his or her utility bill, the` `utility shall apply a credit to a portion of the` `participant's pre-program arrears, if any, equal to` `one-twelfth of such arrearage, provided that the utility` `may limit the total amount of arrearage credits to no more` `than $1,000 annually for each participant for gas and no` `more than $1,000 annually for each participant for` `electricity. SARP participants shall not be subject to the` `imposition of any additional late payment fees on` `pre-program arrears covered by the SARP. In all other` `respects, the utility shall bill and collect the monthly` `bill of a SARP participant under the same rules,` `regulations, programs, and policies as applicable to` `residential customers generally. Participation in the SARP` `shall be limited to the maximum amount of funds available` `as set forth in subsection (f) of Section 13 of this Act.` `In the event any donated funds under Section 13 of this Act` `are specifically designated for the purpose of funding the` `SARP, the Department shall remit such amounts to the` `utilities upon verification that such funds are needed to` `fund the SARP. ``(6) The Department may terminate a plan participant's` `eligibility for the PIP Plan upon notification by the` `utility that the participant's monthly utility payment is` `more than 45 days past due.` ``(7) The Department, in consultation with the Policy` `Advisory Council, may adjust the number of PIP Plan` `participants annually, if necessary, to match the` `availability of funds``from LIHEAP``.``Any plan participant who` `qualifies for a PIPP credit under a utility's PIPP shall be` `entitled to participate in and receive a credit under such` `utility's ARP for so long as such utility has ARP funds` `available, regardless of whether the customer's` `participation under another utility's PIPP or ARP has been` `curtailed or limited because of a lack of funds. ``(8) The Department shall fully implement the PIPP at` `the earliest possible date it is able to effectively` `administer the PIPP. Within 90 days of the effective date` `of this amendatory Act of the 96th General Assembly, the` `Department shall, in consultation with utility companies,` `participating alternative suppliers, LAAs and the Illinois` `Commerce Commission (Commission), issue a detailed` `implementation plan which shall include detailed testing` `protocols and analysis of the capacity for implementation` `by the LAAs and utilities. Such consultation process also` `shall address how to implement the PIPP in the most` `cost-effective and timely manner, and shall identify` `opportunities for relying on the expertise of utilities,` `LAAs and the Commission. Following the implementation of` `the testing protocols, the Department shall issue a written` `report on the feasibility of full or gradual` `implementation. The PIPP shall be fully implemented by` `September 1, 2011, but may be phased in prior to that date.` ``(9) As part of the screening process established under` `item (1) of this subsection (c), the Department and LAAs` `shall assess whether any energy efficiency or demand` `response measures are available to the plan participant at` `no cost, and if so, the participant shall enroll in any` `such program for which he or she is eligible. The LAAs` `shall assist the participant in the applicable enrollment` `or application process.` ``(10) Each alternative retail electric and gas supplier` `serving residential customers shall elect whether to` `participate in the PIPP or ARP described in this Section.` `Any such supplier electing to participate in the PIPP shall` `provide to the Department such information as the` `Department may require, including, without limitation,` `information sufficient for the Department to determine the` `proportionate allocation of credits between the` `alternative supplier and the utility. If a utility in whose` `service territory an alternative supplier serves customers` `contributes money to the ARP fund which is not recovered` `from ratepayers, then an alternative supplier which` `participates in ARP in that utility's service territory` `shall also contribute to the ARP fund in an amount that is` `commensurate with the number of alternative supplier` `customers who elect to participate in the program.` (d) The Department, in consultation with the Policy` `Advisory Council, shall develop and implement a program to` `educate customers about the PIP Plan and about their rights and` `responsibilities under the percentage of income component. The` `Department, in consultation with the Policy Advisory Council,` `shall establish a process that LAAs shall use to contact` `customers in jeopardy of losing eligibility due to late` `payments. The Department shall ensure that LAAs are adequately` `funded to perform all necessary educational tasks.` (e) The PIPP shall be administered in a manner which` `ensures that credits to plan participants will not be counted` `as income or as a resource in other means-tested assistance` `programs for low-income households or otherwise result in the` `loss of federal or State assistance dollars for low-income` `households.` (f) In order to ensure that implementation costs are` `minimized, the Department and utilities shall work together to` `identify cost-effective ways to transfer information` `electronically and to employ available protocols that will` `minimize their respective administrative costs as follows:` ``(1) The Commission may require utilities to provide` `such information on customer usage and billing and payment` `information as required by the Department to implement the` `PIP Plan and to provide written notices and communications` `to plan participants.` ``(2) Each utility and participating alternative` `supplier shall file annual reports with the Department and` `the Commission that cumulatively summarize and update` `program information as required by the Commission's rules.` `The reports shall track implementation costs and contain` `such information as is necessary to evaluate the success of` `the PIPP.` ``(3) The Department and the Commission shall have the` `authority to promulgate rules and regulations necessary to` `execute and administer the provisions of this Section.` (g) Each utility shall be entitled to recover reasonable` `administrative and operational costs incurred to comply with` `this Section from the Supplemental Low Income Energy Assistance` `Fund. The utility may net such costs against monies it would` `otherwise remit to the Funds, and each utility shall include in` `the annual report required under subsection (f) of this Section` `an accounting for the funds collected. `(Source: P.A. 96-33, eff. 7-10-09.) Section 85.``The Public Utilities Act is amended by changing` `Section 2-202 as follows:` ` (220 ILCS 5/2-202) `(from Ch. 111 2/3, par. 2-202) ` Sec. 2-202.``Policy; Public Utility Fund; tax. (a) It is declared to be the public policy of this State` `that in order to maintain and foster the effective regulation` `of public utilities under this Act in the interests of the` `People of the State of Illinois and the public utilities as` `well, the public utilities subject to regulation under this Act` `and which enjoy the privilege of operating as public utilities` `in this State, shall bear the expense of administering this Act` `by means of a tax on such privilege measured by the annual` `gross revenue of such public utilities in the manner provided` `in this Section. For purposes of this Section, "expense of` `administering this Act" includes any costs incident to studies,` `whether made by the Commission or under contract entered into` `by the Commission, concerning environmental pollution problems` `caused or contributed to by public utilities and the means for` `eliminating or abating those problems. Such proceeds shall be` `deposited in the Public Utility Fund in the State treasury. (b) All of the ordinary and contingent expenses of the` `Commission incident to the administration of this Act shall be` `paid out of the Public Utility Fund except the compensation of` `the members of the Commission which shall be paid from the` `General Revenue Fund. Notwithstanding other provisions of this` `Act to the contrary, the ordinary and contingent expenses of` `the Commission incident to the administration of the Illinois` `Commercial Transportation Law may be paid from appropriations` `from the Public Utility Fund through the end of fiscal year` `1986. (c) A tax is imposed upon each public utility subject to` `the provisions of this Act equal to .08% of its gross revenue` `for each calendar year commencing with the calendar year` `beginning January 1, 1982, except that the Commission may, by` `rule, establish a different rate no greater than 0.1%. For` `purposes of this Section, "gross revenue" shall not include` `revenue from the production, transmission, distribution, sale,` `delivery, or furnishing of electricity. "Gross revenue" shall` `not include amounts paid by telecommunications retailers under` `the Telecommunications Infrastructure Maintenance Fee Act. (d) Annual gross revenue returns shall be filed in` `accordance with paragraph (1) or (2) of this subsection (d). `` ``(1) Except as provided in paragraph (2) of this` `subsection (d), on or before January 10 of each year each` `public utility subject to the provisions of this Act shall` `file with the Commission an estimated annual gross revenue` `return containing an estimate of the amount of its gross` `revenue for the calendar year commencing January 1 of said` `year and a statement of the amount of tax due for said` `calendar year on the basis of that estimate. Public` `utilities may also file revised returns containing updated` `estimates and updated amounts of tax due during the` `calendar year. These revised returns, if filed, shall form` `the basis for quarterly payments due during the remainder` `of the calendar year. In addition, on or before March 31 of` `each year, each public utility shall file an amended return` `showing the actual amount of gross revenues shown by the` `company's books and records as of December 31 of the` `previous year. Forms and instructions for such estimated,` `revised, and amended returns shall be devised and supplied` `by the Commission. `` ``(2) Beginning with returns due after January 1, 2002,` `the requirements of paragraph (1) of this subsection (d)` `shall not apply to any public utility in any calendar year` `for which the total tax the public utility owes under this` `Section is less than $10,000. For such public utilities` `with respect to such years, the public utility shall file` `with the Commission, on or before March 31 of the following` `year, an annual gross revenue return for the year and a` `statement of the amount of tax due for that year on the` `basis of such a return. Forms and instructions for such` `returns and corrected returns shall be devised and supplied` `by the Commission. (e) All returns submitted to the Commission by a public` `utility as provided in this subsection (e) or subsection (d) of` `this Section shall contain or be verified by a written` `declaration by an appropriate officer of the public utility` `that the return is made under the penalties of perjury. The` `Commission may audit each such return submitted and may, under` `the provisions of Section 5-101 of this Act, take such measures` `as are necessary to ascertain the correctness of the returns` `submitted. The Commission has the power to direct the filing of` `a corrected return by any utility which has filed an incorrect` `return and to direct the filing of a return by any utility` `which has failed to submit a return. A taxpayer's signing a` `fraudulent return under this Section is perjury, as defined in` `Section 32-2 of the Criminal Code of 2012. (f) (1) For all public utilities subject to paragraph (1)` `of subsection (d), at least one quarter of the annual amount of` `tax due under subsection (c) shall be paid to the Commission on` `or before the tenth day of January, April, July, and October of` `the calendar year subject to tax. In the event that an` `adjustment in the amount of tax due should be necessary as a` `result of the filing of an amended or corrected return under` `subsection (d) or subsection (e) of this Section, the amount of` `any deficiency shall be paid by the public utility together` `with the amended or corrected return and the amount of any` `excess shall, after the filing of a claim for credit by the` `public utility, be returned to the public utility in the form` `of a credit memorandum in the amount of such excess or be` `refunded to the public utility in accordance with the` `provisions of subsection (k) of this Section. However, if such` `deficiency or excess is less than $1, then the public utility` `need not pay the deficiency and may not claim a credit. (2) Any public utility subject to paragraph (2) of` `subsection (d) shall pay the amount of tax due under subsection` `(c) on or before March 31 next following the end of the` `calendar year subject to tax. In the event that an adjustment` `in the amount of tax due should be necessary as a result of the` `filing of a corrected return under subsection (e), the amount` `of any deficiency shall be paid by the public utility at the` `time the corrected return is filed. Any excess tax payment by` `the public utility shall be returned to it after the filing of` `a claim for credit, in the form of a credit memorandum in the` `amount of the excess. However, if such deficiency or excess is` `less than $1, the public utility need not pay the deficiency` `and may not claim a credit. (g) Each installment or required payment of the tax imposed` `by subsection (c) becomes delinquent at midnight of the date` `that it is due. Failure to make a payment as required by this` `Section shall result in the imposition of a late payment` `penalty, an underestimation penalty, or both, as provided by` `this subsection. The late payment penalty shall be the greater` `of: `` ``(1) $25 for each month or portion of a month that the` `installment or required payment is unpaid or `` ``(2) an amount equal to the difference between what` `should have been paid on the due date, based upon the most` `recently filed estimated, annual, or amended return, and` `what was actually paid, times 1%, for each month or portion` `of a month that the installment or required payment goes` `unpaid. This penalty may be assessed as soon as the` `installment or required payment becomes delinquent. The underestimation penalty shall apply to those public` `utilities subject to paragraph (1) of subsection (d) and shall` `be calculated after the filing of the amended return. It shall` `be imposed if the amount actually paid on any of the dates` `specified in subsection (f) is not equal to at least one-fourth` `of the amount actually due for the year, and shall equal the` `greater of: `` ``(1) $25 for each month or portion of a month that the` `amount due is unpaid or `` ``(2) an amount equal to the difference between what` `should have been paid, based on the amended return, and` `what was actually paid as of the date specified in` `subsection (f), times a percentage equal to 1/12 of the sum` `of 10% and the percentage most recently established by the` `Commission for interest to be paid on customer deposits` `under 83 Ill. Adm. Code 280.70(e)(1), for each month or` `portion of a month that the amount due goes unpaid, except` `that no underestimation penalty shall be assessed if the` `amount actually paid on or before each of the dates` `specified in subsection (f) was based on an estimate of` `gross revenues at least equal to the actual gross revenues` `for the previous year. The Commission may enforce the` `collection of any delinquent installment or payment, or` `portion thereof by legal action or in any other manner by` `which the collection of debts due the State of Illinois may` `be enforced under the laws of this State. The executive` `director or his designee may excuse the payment of an` `assessed penalty or a portion of an assessed penalty if he` `determines that enforced collection of the penalty as` `assessed would be unjust. (h) All sums collected by the Commission under the` `provisions of this Section shall be paid promptly after the` `receipt of the same, accompanied by a detailed statement` `thereof, into the Public Utility Fund in the State treasury. (i) During the month of October of each odd-numbered year` `the Commission shall: `` ``(1) determine the amount of all moneys deposited in the` `Public Utility Fund during the preceding fiscal biennium` `plus the balance, if any, in that fund at the beginning of` `that biennium; `` ``(2) determine the sum total of the following items: (A)` `all moneys expended or obligated against appropriations` `made from the Public Utility Fund during the preceding` `fiscal biennium, plus (B) the sum of the credit memoranda` `then outstanding against the Public Utility Fund, if any;` `and `` ``(3) determine the amount, if any, by which the sum` `determined as provided in item (1) exceeds the amount` `determined as provided in item (2). If the amount determined as provided in item (3) of this` `subsection exceeds 50% of the previous fiscal year's` `appropriation level, the Commission shall then compute the` `proportionate amount, if any, which (x) the tax paid hereunder` `by each utility during the preceding biennium, and (y) the` `amount paid into the Public Utility Fund during the preceding` `biennium by the Department of Revenue pursuant to Sections 2-9` `and 2-11 of the Electricity Excise Tax Law, bears to the` `difference between the amount determined as provided in item` `(3) of this subsection (i) and 50% of the previous fiscal` `year's appropriation level. The Commission shall cause the` `proportionate amount determined with respect to payments made` `under the Electricity Excise Tax Law to be transferred into the` `General Revenue Fund in the State Treasury, and notify each` `public utility that it may file during the 3 month period after` `the date of notification a claim for credit for the` `proportionate amount determined with respect to payments made` `hereunder by the public utility. If the proportionate amount is` `less than $10, no notification will be sent by the Commission,` `and no right to a claim exists as to that amount. Upon the` `filing of a claim for credit within the period provided, the` `Commission shall issue a credit memorandum in such amount to` `such public utility. Any claim for credit filed after the` `period provided for in this Section is void. (i-5) During the month of October of each year the` `Commission shall:` ``(1) determine the amount of all moneys expected to be` `deposited in the Public Utility Fund during the current` `fiscal year, plus the balance, if any, in that fund at the` `beginning of that year;` ``(2) determine the total of all moneys expected to be` `expended or obligated against appropriations made from the` `Public Utility Fund during the current fiscal year; and` ``(3) determine the amount, if any, by which the amount` `determined in paragraph (2) exceeds the amount determined` `as provided in paragraph (1).` If the amount determined as provided in paragraph (3) of` `this subsection (i-5) results in a deficit, the Commission may` `assess electric utilities and gas utilities for the difference` `between the amount appropriated for the ordinary and contingent` `expenses of the Commission and the amount derived under` `paragraph (1) of this subsection (i-5). Such proceeds shall be` `deposited in the Public Utility Fund in the State treasury. The` `Commission shall apportion that difference among those public` `utilities on the basis of each utility's share of the total` `intrastate gross revenues of the utilities subject to this` `subsection (i-5). Payments required under this subsection` `(i-5) shall be made in the time and manner directed by the` `Commission. The Commission shall permit utilities to recover` `Illinois Commerce Commission assessments effective pursuant to` `this subsection through an automatic adjustment mechanism that` `is incorporated into an existing tariff that recovers costs` `associated with this Section, or through a supplemental` `customer charge.` Within 6 months after the first time assessments are made` `under this subsection (i-5), the Commission shall initiate a` `docketed proceeding in which it shall consider, in addition to` `assessments from electric and gas utilities subject to this` `subsection, the raising of assessments from, or the payment of` `fees by, water and sewer utilities, entities possessing` `certificates of service authority as alternative retail` `electric suppliers under Section 16-115 of this Act, entities` `possessing certificates of service authority as alternative` `gas suppliers under Section 19-110 of this Act, and` `telecommunications carriers providing local exchange` `telecommunications service or interexchange telecommunications` `service under sections 13-204 or 13-205 of this Act. The` `amounts so determined shall be based on the costs to the agency` `of the exercise of its regulatory and supervisory functions` `with regard to the different industries and service providers` `subject to the proceeding. No less often than every 3 years` `after the end of a proceeding under this subsection (i-5), the` `Commission shall initiate another proceeding for that purpose.` The Commission may use this apportionment method until the` `docketed proceeding in which the Commission considers the` `raising of assessments from other entities subject to its` `jurisdiction under this Act has concluded. No credit memoranda` `shall be issued pursuant to subsection (i) if the amount` `determined as provided in paragraph (3) of this subsection` `(i-5) results in a deficit. (j) Credit memoranda issued pursuant to subsection (f) and` `credit memoranda issued after notification and filing pursuant` `to subsection (i) may be applied for the 2 year period from the` `date of issuance, against the payment of any amount due during` `that period under the tax imposed by subsection (c), or,` `subject to reasonable rule of the Commission including` `requirement of notification, may be assigned to any other` `public utility subject to regulation under this Act. Any` `application of credit memoranda after the period provided for` `in this Section is void. (k) The chairman or executive director may make refund of` `fees, taxes or other charges whenever he shall determine that` `the person or public utility will not be liable for payment of` `such fees, taxes or charges during the next 24 months and he` `determines that the issuance of a credit memorandum would be` `unjust. `(Source: P.A. 97-1150, eff. 1-25-13.) Section 97.``Severability.``The provisions of this Act are` `severable under Section 1.31 of the Statute on Statutes.`