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HB5438 • 2026

BROWNFIELD PHOTOVOLATIC REGS

BROWNFIELD PHOTOVOLATIC REGS

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Jay Hoffman
Last action
2026-03-27
Official status
Rule 19(a) / Re-referred to Rules Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

BROWNFIELD PHOTOVOLATIC REGS

BROWNFIELD PHOTOVOLATIC REGS

What This Bill Does

  • BROWNFIELD PHOTOVOLATIC REGS

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-03-27 Illinois General Assembly

    Rule 19(a) / Re-referred to Rules Committee

  2. 2026-03-18 Illinois General Assembly

    Assigned to Energy & Environment Committee

  3. 2026-02-13 Illinois General Assembly

    First Reading

  4. 2026-02-13 Illinois General Assembly

    Referred to Rules Committee

  5. 2026-02-06 Illinois General Assembly

    Filed with the Clerk by Rep. Jay Hoffman

Official Summary Text

BROWNFIELD PHOTOVOLATIC REGS

Current Bill Text

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Illinois General Assembly - Full Text of HB5438

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HB5438 - 104th General Assembly

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Introduced

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5438

Introduced 2/13/2026, by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:

20 ILCS 655/5.5

from Ch. 67 1/2, par. 609.1
20 ILCS 3855/1-10

Amends the Illinois Enterprise Zone Act. In provisions concerning
High Impact Businesses, adds utility-scale brownfield site photovoltaic
projects and over 5,000 kilowatts and utility-scale solar projects to High
Impact Businesses that may be located, at the time of designation, in an
enterprise zone. Amends the Illinois Power Agency Act. Provides that
"brownfield site photovoltaic project" includes photovoltaics that are
interconnected to an electric utility, a municipal utility, a public
utility, or an electric cooperative, where at least 50% of the acreage
occupied by the photovoltaics is located on the property regulated under
specified United States Environmental Protection Agency or Illinois
Environmental Protection Agency programs. Makes other changes
LRB104 20732 AAS 34235 b

A BILL FOR

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LRB104 20732 AAS 34235 b
1

AN ACT concerning regulation.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Enterprise Zone Act is amended by
5
changing Section 5.5 as follows:

6

(20 ILCS 655/5.5)

(from Ch. 67 1/2, par. 609.1)
7

Sec. 5.5.
High Impact Business.
8

(a) In order to respond to unique opportunities to assist
9
in the encouragement, development, growth, and expansion of
10
the private sector through
large-scale

large scale
investment
11
and development projects, the Department is authorized to
12
receive and approve applications for the designation of "High
13
Impact Businesses" in Illinois, for an initial term of 20
14
years with an option for renewal for a term not to exceed 20
15
years, subject to the following conditions:
16

(1) such applications may be submitted at any time
17

during the year;
18

(2) such business is not located, at the time of
19

designation, in an enterprise zone designated pursuant to
20

this Act, except for
the following:
21

(A)
grocery stores, as defined in the Grocery
22

Initiative Act
;

,
23

(B)

and
a new battery energy storage solution

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1

facility, as defined by subparagraph (I) of paragraph
2

(3) of this subsection (a)
;
3

(C) utility-scale brownfield site photovoltaic
4

projects over 5,000 kilowatts; and
5

(D) utility-scale solar projects, as defined in
6

Section 1-10 of the Illinois Power Agency Act
;
7

(3) the business intends to do, commits to do, or is
8

one or more of the following:
9

(A) the business intends to make a minimum
10

investment of $12,000,000 which will be placed in
11

service in qualified property and intends to create
12

500 full-time equivalent jobs at a designated location
13

in Illinois or intends to make a minimum investment of
14

$30,000,000 which will be placed in service in
15

qualified property and intends to retain 1,500
16

full-time retained jobs at a designated location in
17

Illinois. The terms "placed in service" and "qualified
18

property" have the same meanings as described in
19

subsection (h) of Section 201 of the Illinois Income
20

Tax Act; or
21

(B) the business intends to establish a new
22

electric generating facility at a designated location
23

in Illinois. "New electric generating facility", for
24

purposes of this Section, means a newly constructed
25

electric generation plant or a newly constructed
26

generation capacity expansion at an existing electric

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1

generation plant, including the transmission lines and
2

associated equipment that transfers electricity from
3

points of supply to points of delivery, and for which
4

such new foundation construction commenced not sooner
5

than July 1, 2001. Such facility shall be designed to
6

provide baseload electric generation and shall operate
7

on a continuous basis throughout the year; and (i)
8

shall have an aggregate rated generating capacity of
9

at least 1,000 megawatts for all new units at one site
10

if it uses natural gas as its primary fuel and
11

foundation construction of the facility is commenced
12

on or before December 31, 2004, or shall have an
13

aggregate rated generating capacity of at least 400
14

megawatts for all new units at one site if it uses coal
15

or gases derived from coal as its primary fuel and
16

shall support the creation of at least 150 new
17

Illinois coal mining jobs, or (ii) shall be funded
18

through a federal Department of Energy grant before
19

December 31, 2010 and shall support the creation of
20

Illinois coal mining jobs, or (iii) shall use coal
21

gasification or integrated gasification-combined cycle
22

units that generate electricity or chemicals, or both,
23

and shall support the creation of Illinois coal mining
24

jobs. The term "placed in service" has the same
25

meaning as described in subsection (h) of Section 201
26

of the Illinois Income Tax Act; or

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(B-5) the business intends to establish a new
2

gasification facility at a designated location in
3

Illinois. As used in this Section, "new gasification
4

facility" means a newly constructed coal gasification
5

facility that generates chemical feedstocks or
6

transportation fuels derived from coal (which may
7

include, but are not limited to, methane, methanol,
8

and nitrogen fertilizer), that supports the creation
9

or retention of Illinois coal mining jobs, and that
10

qualifies for financial assistance from the Department
11

before December 31, 2010. A new gasification facility
12

does not include a pilot project located within
13

Jefferson County or within a county adjacent to
14

Jefferson County for synthetic natural gas from coal;
15

or
16

(C) the business intends to establish production
17

operations at a new coal mine, re-establish production
18

operations at a closed coal mine, or expand production
19

at an existing coal mine at a designated location in
20

Illinois not sooner than July 1, 2001; provided that
21

the production operations result in the creation of
22

150 new Illinois coal mining jobs as described in
23

subdivision (a)(3)(B) of this Section, and further
24

provided that the coal extracted from such mine is
25

utilized as the predominant source for a new electric
26

generating facility. The term "placed in service" has

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the same meaning as described in subsection (h) of
2

Section 201 of the Illinois Income Tax Act; or
3

(D) the business intends to construct new
4

transmission facilities or upgrade existing
5

transmission facilities at designated locations in
6

Illinois, for which construction commenced not sooner
7

than July 1, 2001. For the purposes of this Section,
8

"transmission facilities" means transmission lines
9

with a voltage rating of 115 kilovolts or above,
10

including associated equipment, that transfer
11

electricity from points of supply to points of
12

delivery and that transmit a majority of the
13

electricity generated by a new electric generating
14

facility designated as a High Impact Business in
15

accordance with this Section. The term "placed in
16

service" has the same meaning as described in
17

subsection (h) of Section 201 of the Illinois Income
18

Tax Act; or
19

(E) the business intends to establish a new wind
20

power facility at a designated location in Illinois.
21

For purposes of this Section, "new wind power
22

facility" means a newly constructed electric
23

generation facility, a newly constructed expansion of
24

an existing electric generation facility, or the
25

replacement of an existing electric generation
26

facility, including the demolition and removal of an

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electric generation facility irrespective of whether
2

it will be replaced, placed in service or replaced on
3

or after July 1, 2009, that generates electricity
4

using wind energy devices, and such facility shall be
5

deemed to include any permanent structures associated
6

with the electric generation facility and all
7

associated transmission lines, substations, and other
8

equipment related to the generation of electricity
9

from wind energy devices. For purposes of this
10

Section, "wind energy device" means any device, with a
11

nameplate capacity of at least 0.5 megawatts, that is
12

used in the process of converting kinetic energy from
13

the wind to generate electricity; or
14

(E-5) the business intends to establish a new
15

utility-scale solar facility at a designated location
16

in Illinois. For purposes of this Section, "new
17

utility-scale solar power facility" means a newly
18

constructed electric generation facility, or a newly
19

constructed expansion of an existing electric
20

generation facility, placed in service on or after
21

July 1, 2021, that (i) generates electricity using
22

photovoltaic cells and (ii) has a nameplate capacity
23

that is greater than 5,000 kilowatts, and such
24

facility shall be deemed to include all associated
25

transmission lines, substations, energy storage
26

facilities, and other equipment related to the

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generation and storage of electricity from
2

photovoltaic cells; or
3

(F) the business commits to (i) make a minimum
4

investment of $500,000,000, which will be placed in
5

service in a qualified property, (ii) create 125
6

full-time equivalent jobs at a designated location in
7

Illinois, (iii) establish a fertilizer plant at a
8

designated location in Illinois that complies with the
9

set-back standards as described in Table 1: Initial
10

Isolation and Protective Action Distances in the 2012
11

Emergency Response Guidebook published by the United
12

States Department of Transportation, (iv) pay a
13

prevailing wage for employees at that location who are
14

engaged in construction activities, and (v) secure an
15

appropriate level of general liability insurance to
16

protect against catastrophic failure of the fertilizer
17

plant or any of its constituent systems; in addition,
18

the business must agree to enter into a construction
19

project labor agreement including provisions
20

establishing wages, benefits, and other compensation
21

for employees performing work under the project labor
22

agreement at that location; for the purposes of this
23

Section, "fertilizer plant" means a newly constructed
24

or upgraded plant utilizing gas used in the production
25

of anhydrous ammonia and downstream nitrogen
26

fertilizer products for resale; for the purposes of

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this Section, "prevailing wage" means the hourly cash
2

wages plus fringe benefits for training and
3

apprenticeship programs approved by the U.S.
4

Department of Labor, Bureau of Apprenticeship and
5

Training, health and welfare, insurance, vacations and
6

pensions paid generally, in the locality in which the
7

work is being performed, to employees engaged in work
8

of a similar character on public works; this paragraph
9

(F) applies only to businesses that submit an
10

application to the Department within 60 days after
11

July 25, 2013 (the effective date of Public Act
12

98-109); or
13

(G) the business intends to establish a new
14

cultured cell material food production facility at a
15

designated location in Illinois. As used in this
16

paragraph (G):
17

"Cultured cell material food production facility"
18

means a facility (i) at which cultured animal cell
19

food is developed using animal cell culture
20

technology, (ii) at which production processes occur
21

that include the establishment of cell lines and cell
22

banks, manufacturing controls, and all components and
23

inputs, and (iii) that complies with all existing
24

registrations, inspections, licensing, and approvals
25

from all applicable and participating State and
26

federal food agencies, including the Department of

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Agriculture, the Department of Public Health, and the
2

United States Food and Drug Administration, to ensure
3

that all food production is safe and lawful under
4

provisions of the Federal Food, Drug and Cosmetic Act
5

related to the development, production, and storage of
6

cultured animal cell food.
7

"New cultured cell material food production
8

facility" means a newly constructed cultured cell
9

material food production facility that is placed in
10

service on or after June 7, 2023 (the effective date of
11

Public Act 103-9) or a newly constructed expansion of
12

an existing cultured cell material food production
13

facility, in a controlled environment, when the
14

improvements are placed in service on or after June 7,
15

2023 (the effective date of Public Act 103-9);
or

16

(H) the business is an existing or planned grocery
17

store, as that term is defined in Section 5 of the
18

Grocery Initiative Act, and receives financial support
19

under that Act within the 10 years before submitting
20

its application under this Act; or
21

(I) the business intends to establish a new
22

battery energy storage solution facility at a
23

designated location in Illinois. As used in this
24

paragraph (I):
25

"New battery energy storage solution facility"
26

means a newly constructed battery energy storage

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LRB104 20732 AAS 34235 b
1

facility, a newly constructed expansion of an existing
2

battery energy storage facility, or the replacement of
3

an existing battery energy storage facility that
4

stores electricity using battery devices and other
5

means. "New battery energy storage solution facility"
6

includes any permanent structures associated with the
7

new battery energy storage facility and all associated
8

transmission lines, substations, and other equipment
9

that is related to the storage and transmission of
10

electric power and that has a capacity of not less than
11

20 megawatt and storage capability of not less than 40
12

megawatt hours of energy;
or

13

(J) the business intends to construct a new high
14

voltage direct current converter station at a
15

designated location in Illinois. As used in this
16

paragraph, "high voltage direct current converter
17

station" has the same meaning given to that term in
18

Section 1-10 of the Illinois Power
Agency
Act; or
19

(K) the business intends to construct a new high
20

voltage direct current converter station facility at a
21

designated location in Illinois. As used in this
22

paragraph, "high voltage direct current converter
23

station" has the same meaning given to that term in
24

Section 1-10 of the Illinois Power
Agency
Act; and
25

(4) no later than 90 days after an application is
26

submitted, the Department shall notify the applicant of

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LRB104 20732 AAS 34235 b
1

the Department's determination of the qualification of the
2

proposed High Impact Business under this Section.
3

(b) Businesses designated as High Impact Businesses
4
pursuant to subdivision (a)(3)(A) of this Section shall
5
qualify for the credits and exemptions described in the
6
following Acts: Section 9-222 and Section 9-222.1A of the
7
Public Utilities Act, subsection (h) of Section 201 of the
8
Illinois Income Tax Act, and Section 1d of the Retailers'
9
Occupation Tax Act; provided that these credits and exemptions
10
described in these Acts shall not be authorized until the
11
minimum investments set forth in subdivision (a)(3)(A) of this
12
Section have been placed in service in qualified properties
13
and, in the case of the exemptions described in the Public
14
Utilities Act and Section 1d of the Retailers' Occupation Tax
15
Act, the minimum full-time equivalent jobs or full-time
16
retained jobs set forth in subdivision (a)(3)(A) of this
17
Section have been created or retained. Businesses designated
18
as High Impact Businesses under this Section shall also
19
qualify for the exemption described in Section 5l of the
20
Retailers' Occupation Tax Act. The credit provided in
21
subsection (h) of Section 201 of the Illinois Income Tax Act
22
shall be applicable to investments in qualified property as
23
set forth in subdivision (a)(3)(A) of this Section.
24

(b-5) Businesses designated as High Impact Businesses
25
pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
26
(a)(3)(D), (a)(3)(G), (a)(3)(H), and (a)(3)(K) of this Section

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1
shall qualify for the credits and exemptions described in the
2
following Acts: Section 51 of the Retailers' Occupation Tax
3
Act, Section 9-222 and Section 9-222.1A of the Public
4
Utilities Act, and subsection (h) of Section 201 of the
5
Illinois Income Tax Act; however, the credits and exemptions
6
authorized under Section 9-222 and Section 9-222.1A of the
7
Public Utilities Act, and subsection (h) of Section 201 of the
8
Illinois Income Tax Act shall not be authorized until the new
9
electric generating facility, the new gasification facility,
10
the new transmission facility, the new, expanded, or reopened
11
coal mine, the new cultured cell material food production
12
facility, or the existing or planned grocery store is
13
operational, except that a new electric generating facility
14
whose primary fuel source is natural gas is eligible only for
15
the exemption under Section 5l of the Retailers' Occupation
16
Tax Act.
17

(b-6) Businesses designated as High Impact Businesses
18
pursuant to subdivision (a)(3)(E), (a)(3)(E-5), (A)(3)(I), or
19
(a)(3)(J) of this Section shall qualify for the exemptions
20
described in Section 5l of the Retailers' Occupation Tax Act;
21
any business so designated as a High Impact Business being,
22
for purposes of this Section, a "Wind Energy Business".
23

(b-7) Beginning on January 1, 2021, businesses designated
24
as High Impact Businesses by the Department shall qualify for
25
the High Impact Business construction jobs credit under
26
subsection (h-5) of Section 201 of the Illinois Income Tax Act

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1
if the business meets the criteria set forth in subsection (i)
2
of this Section. The total aggregate amount of credits awarded
3
under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
4
shall not exceed $20,000,000 in any State fiscal year.
5

(c) High Impact Businesses located in federally designated
6
foreign trade zones or sub-zones are also eligible for
7
additional credits, exemptions and deductions as described in
8
the following Acts: Section 9-221 and Section 9-222.1 of the
9
Public Utilities Act; and subsection (g) of Section 201, and
10
Section 203 of the Illinois Income Tax Act.
11

(d) Except for businesses contemplated under subdivision
12
(a)(3)(E), (a)(3)(E-5), (a)(3)(G), (a)(3)(H), (A)(3)(I),
13
(a)(3)(J), or (a)(3)(K) of this Section, existing Illinois
14
businesses which apply for designation as a High Impact
15
Business must provide the Department with the prospective plan
16
for which 1,500 full-time retained jobs would be eliminated in
17
the event that the business is not designated.
18

(e) Except for new businesses contemplated under
19
subdivision (a)(3)(E), subdivision (a)(3)(G), subdivision
20
(a)(3)(H), or subdivision (a)(3)(J) of this Section, new
21
proposed facilities which apply for designation as High Impact
22
Business must provide the Department with proof of alternative
23
non-Illinois sites which would receive the proposed investment
24
and job creation in the event that the business is not
25
designated as a High Impact Business.
26

(f) Except for businesses contemplated under subdivision

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LRB104 20732 AAS 34235 b
1
(a)(3)(E), subdivision (a)(3)(G), subdivision (a)(3)(H),
2
subdivision (a)(3)(J), or (a)(3)(K) of this Section, in the
3
event that a business is designated a High Impact Business and
4
it is later determined after reasonable notice and an
5
opportunity for a hearing as provided under the Illinois
6
Administrative Procedure Act, that the business would have
7
placed in service in qualified property the investments and
8
created or retained the requisite number of jobs without the
9
benefits of the High Impact Business designation, the
10
Department shall be required to immediately revoke the
11
designation and notify the Director of the Department of
12
Revenue who shall begin proceedings to recover all wrongfully
13
exempted State taxes with interest.
14

(g) The Department shall revoke a High Impact Business
15
designation if the participating business fails to comply with
16
the terms and conditions of the designation.
17

(h) Prior to designating a business, the Department shall
18
provide the members of the General Assembly and Commission on
19
Government Forecasting and Accountability with a report
20
setting forth the terms and conditions of the designation and
21
guarantees that have been received by the Department in
22
relation to the proposed business being designated.
23

(i) High Impact Business construction jobs credit.
24
Beginning on January 1, 2021, a High Impact Business may
25
receive a tax credit against the tax imposed under subsections
26
(a) and (b) of Section 201 of the Illinois Income Tax Act in an

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1
amount equal to 50% of the amount of the incremental income tax
2
attributable to High Impact Business construction jobs credit
3
employees employed in the course of completing a High Impact
4
Business construction jobs project. However, the High Impact
5
Business construction jobs credit may equal 75% of the amount
6
of the incremental income tax attributable to High Impact
7
Business construction jobs credit employees if the High Impact
8
Business construction jobs credit project is located in an
9
underserved area.
10

The Department shall certify to the Department of Revenue:
11
(1) the identity of taxpayers that are eligible for the High
12
Impact Business construction jobs credit; and (2) the amount
13
of High Impact Business construction jobs credits that are
14
claimed pursuant to subsection (h-5) of Section 201 of the
15
Illinois Income Tax Act in each taxable year.
16

As used in this subsection (i):
17

"High Impact Business construction jobs credit" means an
18
amount equal to 50% (or 75% if the High Impact Business
19
construction project is located in an underserved area) of the
20
incremental income tax attributable to High Impact Business
21
construction job employees. The total aggregate amount of
22
credits awarded under the Blue Collar Jobs Act (Article 20 of
23
Public Act 101-9) shall not exceed $20,000,000 in any State
24
fiscal year
25

"High Impact Business construction job employee" means a
26
laborer or worker who is employed by a contractor or

HB5438
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LRB104 20732 AAS 34235 b
1
subcontractor in the actual construction work on the site of a
2
High Impact Business construction job project.
3

"High Impact Business construction jobs project" means
4
building a structure or building or making improvements of any
5
kind to real property, undertaken and commissioned by a
6
business that was designated as a High Impact Business by the
7
Department. The term "High Impact Business construction jobs
8
project" does not include the routine operation, routine
9
repair, or routine maintenance of existing structures,
10
buildings, or real property.
11

"Incremental income tax" means the total amount withheld
12
during the taxable year from the compensation of High Impact
13
Business construction job employees.
14

"Underserved area" means a geographic area that meets one
15
or more of the following conditions:
16

(1) the area has a poverty rate of at least 20%
17

according to the latest American Community Survey;
18

(2) 35% or more of the families with children in the
19

area are living below 130% of the poverty line, according
20

to the latest American Community Survey;
21

(3) at least 20% of the households in the area receive
22

assistance under the Supplemental Nutrition Assistance
23

Program (SNAP); or
24

(4) the area has an average unemployment rate, as
25

determined by the Illinois Department of Employment
26

Security, that is more than 120% of the national

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unemployment average, as determined by the U.S. Department
2

of Labor, for a period of at least 2 consecutive calendar
3

years preceding the date of the application.
4

(j) (Blank).
5

(j-5) Annually, until construction is completed, a company
6
seeking High Impact Business Construction Job credits shall
7
submit a report that, at a minimum, describes the projected
8
project scope, timeline, and anticipated budget. Once the
9
project has commenced, the annual report shall include actual
10
data for the prior year as well as projections for each
11
additional year through completion of the project. The
12
Department shall issue detailed reporting guidelines
13
prescribing the requirements of construction-related reports.
14

In order to receive credit for construction expenses, the
15
company must provide the Department with evidence that a
16
certified third-party executed an Agreed-Upon Procedure (AUP)
17
verifying the construction expenses or accept the standard
18
construction wage expense estimated by the Department.
19

Upon review of the final project scope, timeline, budget,
20
and AUP, the Department shall issue a tax credit certificate
21
reflecting a percentage of the total construction job wages
22
paid throughout the completion of the project.
23

(k) Upon 7 business days' notice, each taxpayer shall make
24
available to each State agency and to federal, State, or local
25
law enforcement agencies and prosecutors for inspection and
26
copying at a location within this State during reasonable

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hours, the report under subsection (j-5).
2

(l) The changes made to this Section by Public Act
3
102-1125, other than the changes in subsection (a), apply to
4
High Impact Businesses that submit applications on or after
5
February 3, 2023 (the effective date of Public Act 102-1125).
6
(Source: P.A. 103-9, eff. 6-7-23; 103-561, eff. 1-1-24;
7
103-595, eff. 6-26-24; 103-605, eff. 7-1-24; 103-1066, eff.
8
2-20-25; 104-6, eff. 6-16-25; revised 12-12-25.)

9

Section 10.
The Illinois Power Agency Act is amended by
10
changing Section 1-10 as follows:

11

(20 ILCS 3855/1-10)
12

(Text of Section before amendment by P.A. 104-458
)
13

Sec. 1-10.
Definitions.
14

"Agency" means the Illinois Power Agency.
15

"Agency loan agreement" means any agreement pursuant to
16
which the Illinois Finance Authority agrees to loan the
17
proceeds of revenue bonds issued with respect to a project to
18
the Agency upon terms providing for loan repayment
19
installments at least sufficient to pay when due all principal
20
of, interest and premium, if any, on those revenue bonds, and
21
providing for maintenance, insurance, and other matters in
22
respect of the project.
23

"Authority" means the Illinois Finance Authority.
24

"Brownfield site photovoltaic project" means photovoltaics

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that are either:
2

(1) interconnected to an electric utility as defined
3

in this Section, a municipal utility as defined in this
4

Section, a public utility as defined in Section 3-105 of
5

the Public Utilities Act, or an electric cooperative as
6

defined in Section 3-119 of the Public Utilities Act
,
7

where at least 50% of the acreage occupied by the
8

photovoltaics is located on the property regulated by one
9

of the following entities under one of the following
10

programs

and located at a site that is regulated by any of
11

the following entities under the following programs
:
12

(A) the United States Environmental Protection
13

Agency under the federal Comprehensive Environmental
14

Response, Compensation, and Liability Act of 1980, as
15

amended;
16

(B) the United States Environmental Protection
17

Agency under the Corrective Action Program of the
18

federal Resource Conservation and Recovery Act, as
19

amended;
20

(C) the Illinois Environmental Protection Agency
21

under the Illinois Site Remediation Program; or
22

(D) the Illinois Environmental Protection Agency
23

under the Illinois Solid Waste Program; or
24

(2) located at the site of a coal mine that has
25

permanently ceased coal production, permanently halted any
26

re-mining operations, and is no longer accepting any coal

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combustion residues; has both completed all clean-up and
2

remediation obligations under the federal Surface Mining
3

and Reclamation Act of 1977 and all applicable Illinois
4

rules and any other clean-up, remediation, or ongoing
5

monitoring to safeguard the health and well-being of the
6

people of the State of Illinois, as well as demonstrated
7

compliance with all applicable federal and State
8

environmental rules and regulations, including, but not
9

limited, to 35 Ill. Adm. Code Part 845 and any rules for
10

historic fill of coal combustion residuals, including any
11

rules finalized in Subdocket A of Illinois Pollution
12

Control Board docket R2020-019.
13

"Clean coal facility" means an electric generating
14
facility that uses primarily coal as a feedstock and that
15
captures and sequesters carbon dioxide emissions at the
16
following levels: at least 50% of the total carbon dioxide
17
emissions that the facility would otherwise emit if, at the
18
time construction commences, the facility is scheduled to
19
commence operation before 2016, at least 70% of the total
20
carbon dioxide emissions that the facility would otherwise
21
emit if, at the time construction commences, the facility is
22
scheduled to commence operation during 2016 or 2017, and at
23
least 90% of the total carbon dioxide emissions that the
24
facility would otherwise emit if, at the time construction
25
commences, the facility is scheduled to commence operation
26
after 2017. The power block of the clean coal facility shall

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not exceed allowable emission rates for sulfur dioxide,
2
nitrogen oxides, carbon monoxide, particulates and mercury for
3
a natural gas-fired combined-cycle facility the same size as
4
and in the same location as the clean coal facility at the time
5
the clean coal facility obtains an approved air permit. All
6
coal used by a clean coal facility shall have high volatile
7
bituminous rank and greater than 1.7 pounds of sulfur per
8
million Btu content, unless the clean coal facility does not
9
use gasification technology and was operating as a
10
conventional coal-fired electric generating facility on June
11
1, 2009 (the effective date of Public Act 95-1027).
12

"Clean coal SNG brownfield facility" means a facility that
13
(1) has commenced construction by July 1, 2015 on an urban
14
brownfield site in a municipality with at least 1,000,000
15
residents; (2) uses a gasification process to produce
16
substitute natural gas; (3) uses coal as at least 50% of the
17
total feedstock over the term of any sourcing agreement with a
18
utility and the remainder of the feedstock may be either
19
petroleum coke or coal, with all such coal having a high
20
bituminous rank and greater than 1.7 pounds of sulfur per
21
million Btu content unless the facility reasonably determines
22
that it is necessary to use additional petroleum coke to
23
deliver additional consumer savings, in which case the
24
facility shall use coal for at least 35% of the total feedstock
25
over the term of any sourcing agreement; and (4) captures and
26
sequesters at least 85% of the total carbon dioxide emissions

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that the facility would otherwise emit.
2

"Clean coal SNG facility" means a facility that uses a
3
gasification process to produce substitute natural gas, that
4
sequesters at least 90% of the total carbon dioxide emissions
5
that the facility would otherwise emit, that uses at least 90%
6
coal as a feedstock, with all such coal having a high
7
bituminous rank and greater than 1.7 pounds of sulfur per
8
million Btu content, and that has a valid and effective permit
9
to construct emission sources and air pollution control
10
equipment and approval with respect to the federal regulations
11
for Prevention of Significant Deterioration of Air Quality
12
(PSD) for the plant pursuant to the federal Clean Air Act;
13
provided, however, a clean coal SNG brownfield facility shall
14
not be a clean coal SNG facility.
15

"Clean energy" means energy generation that is 90% or
16
greater free of carbon dioxide emissions.
17

"Commission" means the Illinois Commerce Commission.
18

"Community renewable generation project" means an electric
19
generating facility that:
20

(1) is powered by wind, solar thermal energy,
21

photovoltaic cells or panels, biodiesel, crops and
22

untreated and unadulterated organic waste biomass, and
23

hydropower that does not involve new construction of dams;
24

(2) is interconnected at the distribution system level
25

of an electric utility as defined in this Section, a
26

municipal utility as defined in this Section that owns or

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operates electric distribution facilities, a public
2

utility as defined in Section 3-105 of the Public
3

Utilities Act, or an electric cooperative, as defined in
4

Section 3-119 of the Public Utilities Act;
5

(3) credits the value of electricity generated by the
6

facility to the subscribers of the facility; and
7

(4) is limited in nameplate capacity to less than or
8

equal to 5,000 kilowatts.
9

"Costs incurred in connection with the development and
10
construction of a facility" means:
11

(1) the cost of acquisition of all real property,
12

fixtures, and improvements in connection therewith and
13

equipment, personal property, and other property, rights,
14

and easements acquired that are deemed necessary for the
15

operation and maintenance of the facility;
16

(2) financing costs with respect to bonds, notes, and
17

other evidences of indebtedness of the Agency;
18

(3) all origination, commitment, utilization,
19

facility, placement, underwriting, syndication, credit
20

enhancement, and rating agency fees;
21

(4) engineering, design, procurement, consulting,
22

legal, accounting, title insurance, survey, appraisal,
23

escrow, trustee, collateral agency, interest rate hedging,
24

interest rate swap, capitalized interest, contingency, as
25

required by lenders, and other financing costs, and other
26

expenses for professional services; and

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(5) the costs of plans, specifications, site study and
2

investigation, installation, surveys, other Agency costs
3

and estimates of costs, and other expenses necessary or
4

incidental to determining the feasibility of any project,
5

together with such other expenses as may be necessary or
6

incidental to the financing, insuring, acquisition, and
7

construction of a specific project and starting up,
8

commissioning, and placing that project in operation.
9

"Delivery services" has the same definition as found in
10
Section 16-102 of the Public Utilities Act.
11

"Delivery year" means the consecutive 12-month period
12
beginning June 1 of a given year and ending May 31 of the
13
following year.
14

"Department" means the Department of Commerce and Economic
15
Opportunity.
16

"Director" means the Director of the Illinois Power
17
Agency.
18

"Demand-response" means measures that decrease peak
19
electricity demand or shift demand from peak to off-peak
20
periods.
21

"Distributed renewable energy generation device" means a
22
device that is:
23

(1) powered by wind, solar thermal energy,
24

photovoltaic cells or panels, biodiesel, crops and
25

untreated and unadulterated organic waste biomass, tree
26

waste, and hydropower that does not involve new

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construction of dams, waste heat to power systems, or
2

qualified combined heat and power systems;
3

(2) interconnected at the distribution system level of
4

either an electric utility as defined in this Section, a
5

municipal utility as defined in this Section that owns or
6

operates electric distribution facilities, or a rural
7

electric cooperative as defined in Section 3-119 of the
8

Public Utilities Act;
9

(3) located on the customer side of the customer's
10

electric meter and is primarily used to offset that
11

customer's electricity load; and
12

(4) (blank).
13

"Energy efficiency" means measures that reduce the amount
14
of electricity or natural gas consumed in order to achieve a
15
given end use. "Energy efficiency" includes voltage
16
optimization measures that optimize the voltage at points on
17
the electric distribution voltage system and thereby reduce
18
electricity consumption by electric customers' end use
19
devices. "Energy efficiency" also includes measures that
20
reduce the total Btus of electricity, natural gas, and other
21
fuels needed to meet the end use or uses.
22

"Electric utility" has the same definition as found in
23
Section 16-102 of the Public Utilities Act.
24

"Equity investment eligible community" or "eligible
25
community" are synonymous and mean the geographic areas
26
throughout Illinois which would most benefit from equitable

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1
investments by the State designed to combat discrimination.
2
Specifically, the eligible communities shall be defined as the
3
following areas:
4

(1) R3 Areas as established pursuant to Section 10-40
5

of the Cannabis Regulation and Tax Act, where residents
6

have historically been excluded from economic
7

opportunities, including opportunities in the energy
8

sector; and
9

(2) environmental justice communities, as defined by
10

the Illinois Power Agency pursuant to the Illinois Power
11

Agency Act, where residents have historically been subject
12

to disproportionate burdens of pollution, including
13

pollution from the energy sector.
14

"Equity eligible persons" or "eligible persons" means
15
persons who would most benefit from equitable investments by
16
the State designed to combat discrimination, specifically:
17

(1) persons who graduate from or are current or former
18

participants in the Clean Jobs Workforce Network Program,
19

the Clean Energy Contractor Incubator Program, the
20

Illinois Climate Works Preapprenticeship Program,
21

Returning Residents Clean Jobs Training Program, or the
22

Clean Energy Primes Contractor Accelerator Program, and
23

the solar training pipeline and multi-cultural jobs
24

program created in paragraphs (a)(1) and (a)(3) of Section
25

16-208.12 of the Public Utilities Act;
26

(2) persons who are graduates of or currently enrolled

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in the foster care system;
2

(3) persons who were formerly incarcerated;
3

(4) persons whose primary residence is in an equity
4

investment eligible community.
5

"Equity eligible contractor" means a business that is
6
majority-owned by eligible persons, or a nonprofit or
7
cooperative that is majority-governed by eligible persons, or
8
is a natural person that is an eligible person offering
9
personal services as an independent contractor.
10

"Facility" means an electric generating unit or a
11
co-generating unit that produces electricity along with
12
related equipment necessary to connect the facility to an
13
electric transmission or distribution system.
14

"General contractor" means the entity or organization with
15
main responsibility for the building of a construction project
16
and who is the party signing the prime construction contract
17
for the project.
18

"Governmental aggregator" means one or more units of local
19
government that individually or collectively procure
20
electricity to serve residential retail electrical loads
21
located within its or their jurisdiction.
22

"High voltage direct current converter station" means the
23
collection of equipment that converts direct current energy
24
from a high voltage direct current transmission line into
25
alternating current using Voltage Source Conversion technology
26
and that is interconnected with transmission or distribution

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assets located in Illinois.
2

"High voltage direct current renewable energy credit"
3
means a renewable energy credit associated with a renewable
4
energy resource where the renewable energy resource has
5
entered into a contract to transmit the energy associated with
6
such renewable energy credit over high voltage direct current
7
transmission facilities.
8

"High voltage direct current transmission facilities"
9
means the collection of installed equipment that converts
10
alternating current energy in one location to direct current
11
and transmits that direct current energy to a high voltage
12
direct current converter station using Voltage Source
13
Conversion technology. "High voltage direct current
14
transmission facilities" includes the high voltage direct
15
current converter station itself and associated high voltage
16
direct current transmission lines. Notwithstanding the
17
preceding, after September 15, 2021 (the effective date of
18
Public Act 102-662), an otherwise qualifying collection of
19
equipment does not qualify as high voltage direct current
20
transmission facilities unless its developer entered into a
21
project labor agreement, is capable of transmitting
22
electricity at 525kv with an Illinois converter station
23
located and interconnected in the region of the PJM
24
Interconnection, LLC, and the system does not operate as a
25
public utility, as that term is defined in Section 3-105 of the
26
Public Utilities Act.

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"Hydropower" means any method of electricity generation or
2
storage that results from the flow of water, including
3
impoundment facilities, diversion facilities, and pumped
4
storage facilities.
5

"Index price" means the real-time energy settlement price
6
at the applicable Illinois trading hub, such as PJM-NIHUB or
7
MISO-IL, for a given settlement period.
8

"Indexed renewable energy credit" means a tradable credit
9
that represents the environmental attributes of one megawatt
10
hour of energy produced from a renewable energy resource, the
11
price of which shall be calculated by subtracting the strike
12
price offered by a new utility-scale wind project or a new
13
utility-scale photovoltaic project from the index price in a
14
given settlement period.
15

"Indexed renewable energy credit counterparty" has the
16
same meaning as "public utility" as defined in Section 3-105
17
of the Public Utilities Act.
18

"Local government" means a unit of local government as
19
defined in Section 1 of Article VII of the Illinois
20
Constitution.
21

"Modernized" or "retooled" means the construction, repair,
22
maintenance, or significant expansion of turbines and existing
23
hydropower dams.
24

"Municipality" means a city, village, or incorporated
25
town.
26

"Municipal utility" means a public utility owned and

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1
operated by any subdivision or municipal corporation of this
2
State.
3

"Nameplate capacity" means the aggregate inverter
4
nameplate capacity in kilowatts AC.
5

"Person" means any natural person, firm, partnership,
6
corporation, either domestic or foreign, company, association,
7
limited liability company, joint stock company, or association
8
and includes any trustee, receiver, assignee, or personal
9
representative thereof.
10

"Project" means the planning, bidding, and construction of
11
a facility.
12

"Project labor agreement" means a pre-hire collective
13
bargaining agreement that covers all terms and conditions of
14
employment on a specific construction project and must include
15
the following:
16

(1) provisions establishing the minimum hourly wage
17

for each class of labor organization employee;
18

(2) provisions establishing the benefits and other
19

compensation for each class of labor organization
20

employee;
21

(3) provisions establishing that no strike or disputes
22

will be engaged in by the labor organization employees;
23

(4) provisions establishing that no lockout or
24

disputes will be engaged in by the general contractor
25

building the project; and
26

(5) provisions for minorities and women, as defined

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under the Business Enterprise for Minorities, Women, and
2

Persons with Disabilities Act, setting forth goals for
3

apprenticeship hours to be performed by minorities and
4

women and setting forth goals for total hours to be
5

performed by underrepresented minorities and women.
6

A labor organization and the general contractor building
7
the project shall have the authority to include other terms
8
and conditions as they deem necessary.
9

"Public utility" has the same definition as found in
10
Section 3-105 of the Public Utilities Act.
11

"Qualified combined heat and power systems" means systems
12
that, either simultaneously or sequentially, produce
13
electricity and useful thermal energy from a single fuel
14
source. Such systems are eligible for "renewable energy
15
credits" in an amount equal to its total energy output where a
16
renewable fuel is consumed or in an amount equal to the net
17
reduction in nonrenewable fuel consumed on a total energy
18
output basis.
19

"Real property" means any interest in land together with
20
all structures, fixtures, and improvements thereon, including
21
lands under water and riparian rights, any easements,
22
covenants, licenses, leases, rights-of-way, uses, and other
23
interests, together with any liens, judgments, mortgages, or
24
other claims or security interests related to real property.
25

"Renewable energy credit" means a tradable credit that
26
represents the environmental attributes of one megawatt hour

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1
of energy produced from a renewable energy resource.
2

"Renewable energy resources" includes energy and its
3
associated renewable energy credit or renewable energy credits
4
from wind, solar thermal energy, photovoltaic cells and
5
panels, biodiesel, anaerobic digestion, crops and untreated
6
and unadulterated organic waste biomass, and hydropower that
7
does not involve new construction of dams, waste heat to power
8
systems, or qualified combined heat and power systems. For
9
purposes of this Act, landfill gas produced in the State is
10
considered a renewable energy resource. "Renewable energy
11
resources" does not include the incineration or burning of
12
tires, garbage, general household, institutional, and
13
commercial waste, industrial lunchroom or office waste,
14
landscape waste, railroad crossties, utility poles, or
15
construction or demolition debris, other than untreated and
16
unadulterated waste wood. "Renewable energy resources" also
17
includes high voltage direct current renewable energy credits
18
and the associated energy converted to alternating current by
19
a high voltage direct current converter station to the extent
20
that: (1) the generator of such renewable energy resource
21
contracted with a third party to transmit the energy over the
22
high voltage direct current transmission facilities, and (2)
23
the third-party contracting for delivery of renewable energy
24
resources over the high voltage direct current transmission
25
facilities have ownership rights over the unretired associated
26
high voltage direct current renewable energy credit.

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1

"Retail customer" has the same definition as found in
2
Section 16-102 of the Public Utilities Act.
3

"Revenue bond" means any bond, note, or other evidence of
4
indebtedness issued by the Authority, the principal and
5
interest of which is payable solely from revenues or income
6
derived from any project or activity of the Agency.
7

"Sequester" means permanent storage of carbon dioxide by
8
injecting it into a saline aquifer, a depleted gas reservoir,
9
or an oil reservoir, directly or through an enhanced oil
10
recovery process that may involve intermediate storage,
11
regardless of whether these activities are conducted by a
12
clean coal facility, a clean coal SNG facility, a clean coal
13
SNG brownfield facility, or a party with which a clean coal
14
facility, clean coal SNG facility, or clean coal SNG
15
brownfield facility has contracted for such purposes.
16

"Service area" has the same definition as found in Section
17
16-102 of the Public Utilities Act.
18

"Settlement period" means the period of time utilized by
19
MISO and PJM and their successor organizations as the basis
20
for settlement calculations in the real-time energy market.
21

"Sourcing agreement" means (i) in the case of an electric
22
utility, an agreement between the owner of a clean coal
23
facility and such electric utility, which agreement shall have
24
terms and conditions meeting the requirements of paragraph (3)
25
of subsection (d) of Section 1-75, (ii) in the case of an
26
alternative retail electric supplier, an agreement between the

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owner of a clean coal facility and such alternative retail
2
electric supplier, which agreement shall have terms and
3
conditions meeting the requirements of Section 16-115(d)(5) of
4
the Public Utilities Act, and (iii) in case of a gas utility,
5
an agreement between the owner of a clean coal SNG brownfield
6
facility and the gas utility, which agreement shall have the
7
terms and conditions meeting the requirements of subsection
8
(h-1) of Section 9-220 of the Public Utilities Act.
9

"Strike price" means a contract price for energy and
10
renewable energy credits from a new utility-scale wind project
11
or a new utility-scale photovoltaic project.
12

"Subscriber" means a person who (i) takes delivery service
13
from an electric utility, and (ii) has a subscription of no
14
less than 200 watts to a community renewable generation
15
project that is located in the electric utility's service
16
area. No subscriber's subscriptions may total more than 40% of
17
the nameplate capacity of an individual community renewable
18
generation project. Entities that are affiliated by virtue of
19
a common parent shall not represent multiple subscriptions
20
that total more than 40% of the nameplate capacity of an
21
individual community renewable generation project.
22

"Subscription" means an interest in a community renewable
23
generation project expressed in kilowatts, which is sized
24
primarily to offset part or all of the subscriber's
25
electricity usage.
26

"Substitute natural gas" or "SNG" means a gas manufactured

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by gasification of hydrocarbon feedstock, which is
2
substantially interchangeable in use and distribution with
3
conventional natural gas.
4

"Total resource cost test" or "TRC test" means a standard
5
that is met if, for an investment in energy efficiency or
6
demand-response measures, the benefit-cost ratio is greater
7
than one. The benefit-cost ratio is the ratio of the net
8
present value of the total benefits of the program to the net
9
present value of the total costs as calculated over the
10
lifetime of the measures. A total resource cost test compares
11
the sum of avoided electric utility costs, representing the
12
benefits that accrue to the system and the participant in the
13
delivery of those efficiency measures and including avoided
14
costs associated with reduced use of natural gas or other
15
fuels, avoided costs associated with reduced water
16
consumption, and avoided costs associated with reduced
17
operation and maintenance costs, as well as other quantifiable
18
societal benefits, to the sum of all incremental costs of
19
end-use measures that are implemented due to the program
20
(including both utility and participant contributions), plus
21
costs to administer, deliver, and evaluate each demand-side
22
program, to quantify the net savings obtained by substituting
23
the demand-side program for supply resources. In calculating
24
avoided costs of power and energy that an electric utility
25
would otherwise have had to acquire, reasonable estimates
26
shall be included of financial costs likely to be imposed by

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future regulations and legislation on emissions of greenhouse
2
gases. In discounting future societal costs and benefits for
3
the purpose of calculating net present values, a societal
4
discount rate based on actual, long-term Treasury bond yields
5
should be used. Notwithstanding anything to the contrary, the
6
TRC test shall not include or take into account a calculation
7
of market price suppression effects or demand reduction
8
induced price effects.
9

"Utility-scale solar project" means an electric generating
10
facility that:
11

(1) generates electricity using photovoltaic cells;
12

and
13

(2) has a nameplate capacity that is greater than
14

5,000 kilowatts.
15

"Utility-scale wind project" means an electric generating
16
facility that:
17

(1) generates electricity using wind; and
18

(2) has a nameplate capacity that is greater than
19

5,000 kilowatts.
20

"Waste Heat to Power Systems" means systems that capture
21
and generate electricity from energy that would otherwise be
22
lost to the atmosphere without the use of additional fuel.
23

"Zero emission credit" means a tradable credit that
24
represents the environmental attributes of one megawatt hour
25
of energy produced from a zero emission facility.
26

"Zero emission facility" means a facility that: (1) is

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fueled by nuclear power; and (2) is interconnected with PJM
2
Interconnection, LLC or the Midcontinent Independent System
3
Operator, Inc., or their successors.
4
(Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-28-23;
5
103-380, eff. 1-1-24
.)

6

(Text of Section after amendment by P.A. 104-458
)
7

Sec. 1-10.
Definitions.
8

"Agency" means the Illinois Power Agency.
9

"Agency loan agreement" means any agreement pursuant to
10
which the Illinois Finance Authority agrees to loan the
11
proceeds of revenue bonds issued with respect to a project to
12
the Agency upon terms providing for loan repayment
13
installments at least sufficient to pay when due all principal
14
of, interest and premium, if any, on those revenue bonds, and
15
providing for maintenance, insurance, and other matters in
16
respect of the project.
17

"Authority" means the Illinois Finance Authority.
18

"Brownfield site photovoltaic project" means photovoltaics
19
that are either:
20

(1) interconnected to an electric utility as defined
21

in this Section, a municipal utility as defined in this
22

Section, a public utility as defined in Section 3-105 of
23

the Public Utilities Act, or an electric cooperative as
24

defined in Section 3-119 of the Public Utilities Act
,
25

where at least 50% of the acreage occupied by the

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photovoltaics is located on the property regulated by one
2

of the following entities under one of the following
3

programs

and located at a site that is regulated by any of
4

the following entities under the following programs
:
5

(A) the United States Environmental Protection
6

Agency under the federal Comprehensive Environmental
7

Response, Compensation, and Liability Act of 1980, as
8

amended;
9

(B) the United States Environmental Protection
10

Agency under the Corrective Action Program of the
11

federal Resource Conservation and Recovery Act, as
12

amended;
13

(C) the Illinois Environmental Protection Agency
14

under the Illinois Site Remediation Program; or
15

(D) the Illinois Environmental Protection Agency
16

under the Illinois Solid Waste Program; or
17

(2) located at the site of a coal mine that has
18

permanently ceased coal production, permanently halted any
19

re-mining operations, and is no longer accepting any coal
20

combustion residues; has both completed all clean-up and
21

remediation obligations under the federal Surface Mining
22

and Reclamation Act of 1977 and all applicable Illinois
23

rules and any other clean-up, remediation, or ongoing
24

monitoring to safeguard the health and well-being of the
25

people of the State of Illinois, as well as demonstrated
26

compliance with all applicable federal and State

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environmental rules and regulations, including, but not
2

limited, to 35 Ill. Adm. Code Part 845 and any rules for
3

historic fill of coal combustion residuals, including any
4

rules finalized in Subdocket A of Illinois Pollution
5

Control Board docket R2020-019.
6

"Clean coal facility" means an electric generating
7
facility that uses primarily coal as a feedstock and that
8
captures and sequesters carbon dioxide emissions at the
9
following levels: at least 50% of the total carbon dioxide
10
emissions that the facility would otherwise emit if, at the
11
time construction commences, the facility is scheduled to
12
commence operation before 2016, at least 70% of the total
13
carbon dioxide emissions that the facility would otherwise
14
emit if, at the time construction commences, the facility is
15
scheduled to commence operation during 2016 or 2017, and at
16
least 90% of the total carbon dioxide emissions that the
17
facility would otherwise emit if, at the time construction
18
commences, the facility is scheduled to commence operation
19
after 2017. The power block of the clean coal facility shall
20
not exceed allowable emission rates for sulfur dioxide,
21
nitrogen oxides, carbon monoxide, particulates and mercury for
22
a natural gas-fired combined-cycle facility the same size as
23
and in the same location as the clean coal facility at the time
24
the clean coal facility obtains an approved air permit. All
25
coal used by a clean coal facility shall have high volatile
26
bituminous rank and greater than 1.7 pounds of sulfur per

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million Btu content, unless the clean coal facility does not
2
use gasification technology and was operating as a
3
conventional coal-fired electric generating facility on June
4
1, 2009 (the effective date of Public Act 95-1027).
5

"Clean coal SNG brownfield facility" means a facility that
6
(1) has commenced construction by July 1, 2015 on an urban
7
brownfield site in a municipality with at least 1,000,000
8
residents; (2) uses a gasification process to produce
9
substitute natural gas; (3) uses coal as at least 50% of the
10
total feedstock over the term of any sourcing agreement with a
11
utility and the remainder of the feedstock may be either
12
petroleum coke or coal, with all such coal having a high
13
bituminous rank and greater than 1.7 pounds of sulfur per
14
million Btu content unless the facility reasonably determines
15
that it is necessary to use additional petroleum coke to
16
deliver additional consumer savings, in which case the
17
facility shall use coal for at least 35% of the total feedstock
18
over the term of any sourcing agreement; and (4) captures and
19
sequesters at least 85% of the total carbon dioxide emissions
20
that the facility would otherwise emit.
21

"Clean coal SNG facility" means a facility that uses a
22
gasification process to produce substitute natural gas, that
23
sequesters at least 90% of the total carbon dioxide emissions
24
that the facility would otherwise emit, that uses at least 90%
25
coal as a feedstock, with all such coal having a high
26
bituminous rank and greater than 1.7 pounds of sulfur per

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million Btu content, and that has a valid and effective permit
2
to construct emission sources and air pollution control
3
equipment and approval with respect to the federal regulations
4
for Prevention of Significant Deterioration of Air Quality
5
(PSD) for the plant pursuant to the federal Clean Air Act;
6
provided, however, a clean coal SNG brownfield facility shall
7
not be a clean coal SNG facility.
8

"Clean energy" means energy generation that is 90% or
9
greater free of carbon dioxide emissions.
10

"Commission" means the Illinois Commerce Commission.
11

"Community renewable generation project" means an electric
12
generating facility that:
13

(1) is powered by wind, solar thermal energy,
14

photovoltaic cells or panels, biodiesel, crops and
15

untreated and unadulterated organic waste biomass, and
16

hydropower that does not involve new construction of dams;
17

(2) is interconnected at the distribution system level
18

of an electric utility as defined in this Section, a
19

municipal utility as defined in this Section that owns or
20

operates electric distribution facilities, a public
21

utility as defined in Section 3-105 of the Public
22

Utilities Act, or an electric cooperative, as defined in
23

Section 3-119 of the Public Utilities Act;
24

(3) credits the value of electricity generated by the
25

facility to the subscribers of the facility; and
26

(4) is limited in nameplate capacity to less than or

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equal to 10,000 kilowatts.
2

"Costs incurred in connection with the development and
3
construction of a facility" means:
4

(1) the cost of acquisition of all real property,
5

fixtures, and improvements in connection therewith and
6

equipment, personal property, and other property, rights,
7

and easements acquired that are deemed necessary for the
8

operation and maintenance of the facility;
9

(2) financing costs with respect to bonds, notes, and
10

other evidences of indebtedness of the Agency;
11

(3) all origination, commitment, utilization,
12

facility, placement, underwriting, syndication, credit
13

enhancement, and rating agency fees;
14

(4) engineering, design, procurement, consulting,
15

legal, accounting, title insurance, survey, appraisal,
16

escrow, trustee, collateral agency, interest rate hedging,
17

interest rate swap, capitalized interest, contingency, as
18

required by lenders, and other financing costs, and other
19

expenses for professional services; and
20

(5) the costs of plans, specifications, site study and
21

investigation, installation, surveys, other Agency costs
22

and estimates of costs, and other expenses necessary or
23

incidental to determining the feasibility of any project,
24

together with such other expenses as may be necessary or
25

incidental to the financing, insuring, acquisition, and
26

construction of a specific project and starting up,

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commissioning, and placing that project in operation.
2

"Delivery services" has the same definition as found in
3
Section 16-102 of the Public Utilities Act.
4

"Delivery year" means the consecutive 12-month period
5
beginning June 1 of a given year and ending May 31 of the
6
following year.
7

"Department" means the Department of Commerce and Economic
8
Opportunity.
9

"Director" means the Director of the Illinois Power
10
Agency.
11

"Demand response" means measures that decrease peak
12
electricity demand or shift demand from peak to off-peak
13
periods.
14

"Distributed renewable energy generation device" means a
15
device that is:
16

(1) powered by wind, solar thermal energy,
17

photovoltaic cells or panels, biodiesel, crops and
18

untreated and unadulterated organic waste biomass, tree
19

waste, and hydropower that does not involve new
20

construction of dams, waste heat to power systems, or
21

qualified combined heat and power systems;
22

(2) interconnected at the distribution system level of
23

either an electric utility as defined in this Section, a
24

municipal utility as defined in this Section that owns or
25

operates electric distribution facilities, or a rural
26

electric cooperative as defined in Section 3-119 of the

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Public Utilities Act;
2

(3) located on the customer side of the customer's
3

electric meter and is primarily used to offset that
4

customer's electricity load; and
5

(4) (blank).
6

"Energy efficiency" means measures that reduce the amount
7
of electricity or natural gas consumed in order to achieve a
8
given end use. "Energy efficiency" includes voltage
9
optimization measures that optimize the voltage at points on
10
the electric distribution voltage system and thereby reduce
11
electricity consumption by electric customers' end use
12
devices. "Energy efficiency" also includes measures that
13
reduce the total Btus of electricity, natural gas, and other
14
fuels needed to meet the end use or uses.
15

"Energy storage system" has the meaning given to that term
16
in Section 16-135 of the Public Utilities Act. "Energy storage
17
system" does not include technologies that require combustion.
18

"Energy storage resources" means the operational output or
19
capabilities of energy storage systems. "Energy storage
20
resources" includes, but is not limited to, energy, capacity,
21
and energy storage credits.
22

"Electric utility" has the same definition as found in
23
Section 16-102 of the Public Utilities Act.
24

"Equity investment eligible community" or "eligible
25
community" are synonymous and mean the geographic areas
26
throughout Illinois which would most benefit from equitable

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investments by the State designed to combat discrimination.
2
Specifically, the eligible communities shall be defined as the
3
following areas:
4

(1) R3 Areas as established pursuant to Section 10-40
5

of the Cannabis Regulation and Tax Act, where residents
6

have historically been excluded from economic
7

opportunities, including opportunities in the energy
8

sector; and
9

(2) environmental justice communities, as defined by
10

the Illinois Power Agency pursuant to the Illinois Power
11

Agency Act, where residents have historically been subject
12

to disproportionate burdens of pollution, including
13

pollution from the energy sector.
14

"Equity eligible persons" or "eligible persons" means
15
persons who would most benefit from equitable investments by
16
the State designed to combat discrimination, specifically:
17

(1) persons who graduate from or are current or former
18

participants in the Clean Jobs Workforce Network Program,
19

the Clean Energy Contractor Incubator Program, the
20

Illinois Climate Works Preapprenticeship Program,
21

Returning Residents Clean Jobs Training Program, or the
22

Clean Energy Primes Contractor Accelerator Program, and
23

the solar training pipeline and multi-cultural jobs
24

program created in paragraphs (1) and (3) of subsection
25

(a) of Section 16-108.12 of the Public Utilities Act;
26

(2) persons who are graduates of or currently enrolled

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in the foster care system;
2

(3) persons who were formerly incarcerated;
3

(4) persons whose primary residence is in an equity
4

investment eligible community.
5

"Equity eligible contractor" means a business that is
6
majority-owned by eligible persons, or a nonprofit or
7
cooperative that is majority-governed by eligible persons, or
8
is a natural person that is an eligible person offering
9
personal services as an independent contractor.
10

"Facility" means an electric generating unit or a
11
co-generating unit that produces electricity along with
12
related equipment necessary to connect the facility to an
13
electric transmission or distribution system.
14

"General contractor" means the entity or organization with
15
main responsibility for the building of a construction project
16
and who is the party signing the prime construction contract
17
for the project.
18

"Governmental aggregator" means one or more units of local
19
government that individually or collectively procure
20
electricity to serve residential retail electrical loads
21
located within its or their jurisdiction.
22

"High voltage direct current converter station" means the
23
collection of equipment that converts direct current energy
24
from a high voltage direct current transmission line into
25
alternating current using Voltage Source Conversion technology
26
and that is interconnected with transmission or distribution

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assets located in Illinois.
2

"High voltage direct current renewable energy credit"
3
means a renewable energy credit associated with a renewable
4
energy resource where the renewable energy resource has
5
entered into a contract to transmit the energy associated with
6
such renewable energy credit over high voltage direct current
7
transmission facilities.
8

"High voltage direct current transmission facilities"
9
means the collection of installed equipment that converts
10
alternating current energy in one location to direct current
11
and transmits that direct current energy to a high voltage
12
direct current converter station using Voltage Source
13
Conversion technology. "High voltage direct current
14
transmission facilities" includes the high voltage direct
15
current converter station itself and associated high voltage
16
direct current transmission lines. Notwithstanding the
17
preceding, after September 15, 2021 (the effective date of
18
Public Act 102-662), an otherwise qualifying collection of
19
equipment does not qualify as high voltage direct current
20
transmission facilities unless (1) its developer entered into
21
a project labor agreement, is capable of transmitting
22
electricity at 525kv with an Illinois converter station
23
located and interconnected in the region of the PJM
24
Interconnection, LLC, and the system does not operate as a
25
public utility, as that term is defined in Section 3-105 of the
26
Public Utilities Act, serving more than 100,000 customers as

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of January 1, 2021; or (2) its developer has entered into a
2
project labor agreement prior to construction, the project is
3
capable of transmitting electricity at 525 kilovolts or above,
4
and the project has a converter station that is located in this
5
State or in a state adjacent to this State and is
6
interconnected to PJM Interconnection, LLC, the Midcontinent
7
Independent System Operator, Inc., or their successor.
8

"Hydropower" means any method of electricity generation or
9
storage that results from the flow of water, including
10
impoundment facilities, diversion facilities, and pumped
11
storage facilities.
12

"Index price" means the real-time energy settlement price
13
at the applicable Illinois trading hub, such as PJM-NIHUB or
14
MISO-IL, for a given settlement period.
15

"Indexed renewable energy credit" means a tradable credit
16
that represents the environmental attributes of one megawatt
17
hour of energy produced from a renewable energy resource, the
18
price of which shall be calculated by subtracting the strike
19
price offered by a new utility-scale wind project or a new
20
utility-scale photovoltaic project from the index price in a
21
given settlement period.
22

"Indexed renewable energy credit counterparty" has the
23
same meaning as "public utility" as defined in Section 3-105
24
of the Public Utilities Act.
25

"Local government" means a unit of local government as
26
defined in Section 1 of Article VII of the Illinois

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1
Constitution.
2

"Modernized" or "retooled" means the construction, repair,
3
maintenance, or significant expansion of turbines and existing
4
hydropower dams.
5

"Municipality" means a city, village, or incorporated
6
town.
7

"Municipal utility" means a public utility owned and
8
operated by any subdivision or municipal corporation of this
9
State.
10

"Nameplate capacity" means the aggregate inverter
11
nameplate capacity in kilowatts AC.
12

"Person" means any natural person, firm, partnership,
13
corporation, either domestic or foreign, company, association,
14
limited liability company, joint stock company, or association
15
and includes any trustee, receiver, assignee, or personal
16
representative thereof.
17

"Project" means the planning, bidding, and construction of
18
a facility.
19

"Project labor agreement" means a pre-hire collective
20
bargaining agreement that covers all terms and conditions of
21
employment on a specific construction project and must include
22
the following:
23

(1) provisions establishing the minimum hourly wage
24

for each class of labor organization employee;
25

(2) provisions establishing the benefits and other
26

compensation for each class of labor organization

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employee;
2

(3) provisions establishing that no strike or disputes
3

will be engaged in by the labor organization employees;
4

(4) provisions establishing that no lockout or
5

disputes will be engaged in by the general contractor
6

building the project; and
7

(5) provisions for minorities and women, as defined
8

under the Business Enterprise for Minorities, Women, and
9

Persons with Disabilities Act, setting forth goals for
10

apprenticeship hours to be performed by minorities and
11

women and setting forth goals for total hours to be
12

performed by underrepresented minorities and women.
13

A labor organization and the general contractor building
14
the project shall have the authority to include other terms
15
and conditions as they deem necessary.
16

"Public utility" has the same definition as found in
17
Section 3-105 of the Public Utilities Act.
18

"Qualified combined heat and power systems" means systems
19
that, either simultaneously or sequentially, produce
20
electricity and useful thermal energy from a single fuel
21
source. Such systems are eligible for "renewable energy
22
credits" in an amount equal to its total energy output where a
23
renewable fuel is consumed or in an amount equal to the net
24
reduction in nonrenewable fuel consumed on a total energy
25
output basis.
26

"Real property" means any interest in land together with

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all structures, fixtures, and improvements thereon, including
2
lands under water and riparian rights, any easements,
3
covenants, licenses, leases, rights-of-way, uses, and other
4
interests, together with any liens, judgments, mortgages, or
5
other claims or security interests related to real property.
6

"Renewable energy credit" means a tradable credit that
7
represents the environmental attributes of one megawatt hour
8
of energy produced from a renewable energy resource.
9

"Renewable energy resources" includes energy and its
10
associated renewable energy credit or renewable energy credits
11
from wind, solar thermal energy, photovoltaic cells and
12
panels, biodiesel, anaerobic digestion, crops and untreated
13
and unadulterated organic waste biomass, and hydropower that
14
does not involve new construction of dams, waste heat to power
15
systems, qualified combined heat and power systems, or
16
geothermal heating and cooling systems that qualify for the
17
Geothermal Homes and Businesses Program. For purposes of this
18
Act, landfill gas produced in the State is considered a
19
renewable energy resource. "Renewable energy resources" does
20
not include the incineration or burning of tires, garbage,
21
general household, institutional, and commercial waste,
22
industrial lunchroom or office waste, landscape waste,
23
railroad crossties, utility poles, or construction or
24
demolition debris, other than untreated and unadulterated
25
waste wood. "Renewable energy resources" also includes high
26
voltage direct current renewable energy credits and the

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associated energy converted to alternating current by a high
2
voltage direct current converter station to the extent that:
3
(1) the generator of such renewable energy resource contracted
4
with a third party to transmit the energy over the high voltage
5
direct current transmission facilities, and (2) the
6
third-party contracting for delivery of renewable energy
7
resources over the high voltage direct current transmission
8
facilities have ownership rights over the unretired associated
9
high voltage direct current renewable energy credit.
10

"Retail customer" has the same definition as found in
11
Section 16-102 of the Public Utilities Act.
12

"Revenue bond" means any bond, note, or other evidence of
13
indebtedness issued by the Authority, the principal and
14
interest of which is payable solely from revenues or income
15
derived from any project or activity of the Agency.
16

"Sequester" means permanent storage of carbon dioxide by
17
injecting it into a saline aquifer, a depleted gas reservoir,
18
or an oil reservoir, directly or through an enhanced oil
19
recovery process that may involve intermediate storage,
20
regardless of whether these activities are conducted by a
21
clean coal facility, a clean coal SNG facility, a clean coal
22
SNG brownfield facility, or a party with which a clean coal
23
facility, clean coal SNG facility, or clean coal SNG
24
brownfield facility has contracted for such purposes.
25

"Service area" has the same definition as found in Section
26
16-102 of the Public Utilities Act.

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"Settlement period" means the period of time utilized by
2
MISO and PJM and their successor organizations as the basis
3
for settlement calculations in the real-time energy market.
4

"Sourcing agreement" means (i) in the case of an electric
5
utility, an agreement between the owner of a clean coal
6
facility and such electric utility, which agreement shall have
7
terms and conditions meeting the requirements of paragraph (3)
8
of subsection (d) of Section 1-75, (ii) in the case of an
9
alternative retail electric supplier, an agreement between the
10
owner of a clean coal facility and such alternative retail
11
electric supplier, which agreement shall have terms and
12
conditions meeting the requirements of Section 16-115(d)(5) of
13
the Public Utilities Act, and (iii) in case of a gas utility,
14
an agreement between the owner of a clean coal SNG brownfield
15
facility and the gas utility, which agreement shall have the
16
terms and conditions meeting the requirements of subsection
17
(h-1) of Section 9-220 of the Public Utilities Act.
18

"Strike price" means a contract price for energy and
19
renewable energy credits from a new utility-scale wind project
20
or a new utility-scale photovoltaic project.
21

"Subscriber" means a person who (i) takes delivery service
22
from an electric utility, and (ii) has a subscription of no
23
less than 200 watts to a community renewable generation
24
project that is located in the electric utility's service
25
area. No subscriber's subscriptions may total more than 40% of
26
the nameplate capacity of an individual community renewable

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generation project. Entities that are affiliated by virtue of
2
a common parent shall not represent multiple subscriptions
3
that total more than 40% of the nameplate capacity of an
4
individual community renewable generation project.
5

"Subscription" means an interest in a community renewable
6
generation project expressed in kilowatts, which is sized
7
primarily to offset part or all of the subscriber's
8
electricity usage.
9

"Substitute natural gas" or "SNG" means a gas manufactured
10
by gasification of hydrocarbon feedstock, which is
11
substantially interchangeable in use and distribution with
12
conventional natural gas.
13

"Total resource cost test" or "TRC test" means a standard
14
that is met if, for an investment in energy efficiency or
15
demand-response measures, the benefit-cost ratio is greater
16
than one. The benefit-cost ratio is the ratio of the net
17
present value of the total benefits of the program to the net
18
present value of the total costs as calculated over the
19
lifetime of the measures. A total resource cost test compares
20
the sum of avoided electric utility costs, representing the
21
benefits that accrue to the system and the participant in the
22
delivery of those efficiency measures and including avoided
23
costs associated with reduced use of natural gas or other
24
fuels, avoided costs associated with reduced water
25
consumption, avoided costs associated with reduced operation
26
and maintenance costs, and avoided societal costs associated

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with reductions in greenhouse gas emissions, as well as other
2
quantifiable societal benefits, to the sum of all incremental
3
costs of end-use measures that are implemented due to the
4
program (including both utility and participant
5
contributions), plus costs to administer, deliver, and
6
evaluate each demand-side program, to quantify the net savings
7
obtained by substituting the demand-side program for supply
8
resources. The societal costs associated with greenhouse gas
9
emissions shall be $200 per short ton, expressed in 2025
10
dollars or the most recently approved estimate developed by
11
the federal government using a real discount rate consistent
12
with long-term Treasury bond yields, whichever is greater.
13
Changes in greenhouse gas emissions due to changes in
14
electricity consumption shall be estimated using long-run
15
marginal emissions rates developed by the National Renewable
16
Energy Laboratory's Cambium model or other Illinois-specific
17
modeling of comparable analytical rigor. In discounting future
18
costs and benefits for the purpose of calculating net present
19
values, a societal discount rate based on actual, long-term
20
Treasury bond yields should be used. Notwithstanding anything
21
to the contrary, the TRC test shall not include or take into
22
account a calculation of market price suppression effects or
23
demand reduction induced price effects.
24

"Utility-scale solar project" means an electric generating
25
facility that:
26

(1) generates electricity using photovoltaic cells;

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and
2

(2) has a nameplate capacity that is greater than
3

5,000 kilowatts alternating current (AC).
4

"Utility-scale wind project" means an electric generating
5
facility that:
6

(1) generates electricity using wind; and
7

(2) has a nameplate capacity that is greater than
8

5,000 kilowatts.
9

"Waste Heat to Power Systems" means systems that capture
10
and generate electricity from energy that would otherwise be
11
lost to the atmosphere without the use of additional fuel.
12

"Zero emission credit" means a tradable credit that
13
represents the environmental attributes of one megawatt hour
14
of energy produced from a zero emission facility.
15

"Zero emission facility" means a facility that: (1) is
16
fueled by nuclear power; and (2) is interconnected with PJM
17
Interconnection, LLC or the Midcontinent Independent System
18
Operator, Inc., or their successors.
19
(Source: P.A. 103-154, eff. 6-28-23; 103-380, eff. 1-1-24;
20
104-458, eff. 6-1-26.)

21

Section 95.
No acceleration or delay.
Where this Act makes
22
changes in a statute that is represented in this Act by text
23
that is not yet or no longer in effect (for example, a Section
24
represented by multiple versions), the use of that text does
25
not accelerate or delay the taking effect of (i) the changes

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made by this Act or (ii) provisions derived from any other
2
Public Act.

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