to: mario bohorquez, planning and procurement bureau chief ......a draft white paper was delivered...
TRANSCRIPT
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To: Mario Bohorquez, Planning and Procurement Bureau Chief From: Juliana Pino, Little Village Environmental Justice Organization
& Participants in the Illinois Solar for All Working Group Date: 11/13/2017 Re: Illinois Solar for All Working Group Comments on the Draft Long‐Term Renewable Resources Procurement Plan
Dear Mr. Bohorquez:
The Illinois Solar for All Working Group is pleased to deliver the enclosed comments on the Draft Long‐Term Renewable Resources Procurement Plan. This memo describes an overview of the Illinois Solar for All Working Group. Background: Illinois Solar for All Working Group
The Illinois Solar for All Working Group (the Working Group) formed from a subset of members of the Illinois Clean Jobs Coalition, who had comprised an Environmental Justice‐Solar‐Labor Caucus (the Caucus) during the negotiation of policies that would become FEJA. The group formed in order to bring the best practices and policies to the Illinois energy landscape that would serve to maximize benefits to the economically disadvantaged households and communities that targeted programs are intended to serve. The group was co‐facilitated by a representative of a solar company, Amy Heart of Sunrun, and a representative of an environmental justice group, Juliana Pino of the Little Village Environmental Justice Organization.
Following passage of FEJA in December 2016, the Caucus expanded into the Illinois Solar
for All Working Group, an open membership group including experts on environmental justice, environmental advocacy, consumer protection, solar business, low‐income solar policy, energy efficiency, job training, program design, and other areas, who have substantive research and experience to bring to bear on implementation of Illinois Solar for All. Over 70 participants include representatives from the following organizations: BIG: Blacks in Green Central Road Energy, LLC
Elevate Energy Environmental Defense Fund
Environmental Law and Policy Center Faith in Place
Futurez NFP Incorporation GRID Alternatives
Illinois Green Economy Network Illinois People’s Action
Little Village Environmental Justice Organization Metanoia Centers for Innovation
Natural Resources Defense Council ONE Northside
People for Community Recovery Seven Generations Ahead
Sierra Club Illinois Southeast Environmental Task Force
StraightUp Solar Sunrun
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The People’s Lobby Union of Concerned Scientists
Vote Solar
Working Group Process The Working Group began convening in January 2017, and has had eleven monthly full‐group meetings. In tandem, the Working Group operates with sub‐teams that focus on specific areas relevant to the policies at hand and future work on the program. These sub‐teams include: Program Design & Incentives, Consumer Protection & Financing, Definitions, Job Training, and Project Workshop. Each sub‐team was facilitated by leads and co‐leads and met weekly to biweekly depending on the time of year. A draft White Paper was delivered to the IPA on May 5, 2017. Many Working Group participants attended IPA’s May 2017 workshops and helped develop responses to IPA’s June 6, 2017 Request for Comments on the Long‐Term Renewable Resources Procurement Plan1. A final White Paper was published on July 11, 2017 on lowincomesolar.org2. Program Principles for Illinois Solar for All During the negotiation of FEJA, the Caucus membership collectively agreed upon the following policy principles to guide our work moving forward. These principles were rooted in the Low‐Income Solar Policy Guide3 authored by GRID Alternatives, Vote Solar, and the Center for Social Inclusion; further adapted through iterative deliberations in the Caucus; and ultimately adopted by the Working Group. The principles include:
• Affordability and Accessibility. Offers opportunities for low‐income residents to invest in solar through a combination of cost savings and support to overcome financial and access challenges Creates economic opportunities through a job training pipeline. Supports skill development for family‐supporting jobs, including national certification and apprenticeship programs. • Community Engagement. Recognizes community partnerships are key to development and implementation, ensuring community needs and challenges are addressed. Strive to maximize projects located in, and serving, environmental justice (EJ) communities. Allows for flexibility for non‐profit/volunteer models to participate, and strives to meet potential trainees where they are, with community‐led trainings. • Sustainability and Flexibility. Encourages long‐term market development, and will be flexible to best serve the unique low‐income market segment over time and as conditions
1 https://www.illinois.gov/sites/ipa/Documents/ILSfA-Working-Group-Response-RequestforComments.pdf 2 http://www.lowincomesolar.org/wp-content/uploads/2017/07/20170711-ILSfA-Working-Group-White-Paper_Final_wAppendices.pdf 3 www.lowincomesolar.org
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change. Program administrator ensures community engagement, statewide geographic equity, and flexibility to meet goals. Job training program includes all training partners in design and implementation. Training offerings should come through diverse channels including utilities, unions, tech schools, non‐profits, government agencies, and existing community‐based job training organizations. • Compatibility and Integration. Low‐income program adds to, and integrates with, existing renewable energy and energy efficiency programs, and supports piloting of financing tools such as pay‐as‐you‐save, on‐bill financing, PACE or community‐led group buy programs. Jobs training program will strive to ensure low‐income solar installations incorporate workforce development, including coordinating opportunities for job training partners and individual trainees from the same communities that the low‐income solar program aims to serve.
The Working Group researched and prepared the enclosed comments to deliver high quality information and recommendations on implementation considerations for the Illinois Solar for All Program. The contents are not intended to reflect universal consensus on any point amongst working group members. These contents reflect extensive deliberation regarding aspects that the Working Group believes are important to the Program’s success moving forward. In closing, we make these recommendations and comments to ensure high‐quality implementation for Illinois communities. Communities throughout Illinois need the opportunities and services the Illinois Solar for All Program will provide and the support of groups with substantive experience in the solar industry and low‐income solar in particular. Please do not hesitate to contact us with questions or comments in regards to this matter.
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Contents Introduction..........................................................................................................................................3
1. SolarforAllIncentives..................................................................................................................3
1.A.AdjustableBlockProgramandSolarforAllIntegration(Sections2.6.1.,6.5.,8.2.1,and8.4.5.)..........................................................................................................................................................4
1.B.RECModelingAssumptions.......................................................................................................6
1.B.1.CapacityFactor...................................................................................................................6
1.B.2.SubscriberManagementforCommunitySolarProjects.....................................................7
1.B.3.CommunitySolarInputs-SmallCustomerSubscriptionCosts...........................................7
1.B.4.TaxAssumptions.................................................................................................................7
1.B.5.ProjectUsefulLife...............................................................................................................8
1.B.6.CustomerSavings................................................................................................................8
2.SolarforAllProgramAdministration................................................................................................8
2.A.Low-IncomeDistributedGenerationIncentiveProgramAdministratorasContractorofRecord(Section2.6.2.1.)...................................................................................................................9
2.B.MunicipalUtilitiesandRuralElectricCooperativesinSolarforAll(Section7.4.).....................9
2.C.DedicatedProgramAdministrationisaCriticalConsumerProtectionMeasure(Section8.8.)........................................................................................................................................................10
2.D.RoleofProgramAdministrator(s)inPreparingMarketingandContractualMaterials(Section8.14.)...............................................................................................................................................13
2.E.RoleofProgramAdministrator(s)forCustomerReferralstoOtherSolarforAllPrograms(Section8.14.).................................................................................................................................14
3.MultifamilyAffordableHousing......................................................................................................15
3.A.DedicatedMultifamilyProgram(Section8.6.1.).....................................................................15
3.B.IllinoisSolarforAllMultifamilyEligibilityandIncomeVerification(Section8.13.2.)..............19
4.SolarforAllConsumerProtection..................................................................................................20
4.A.TangibleEconomicBenefit(Sections2.6.3.,8.2.2.,8.11.,and8.14.)......................................21
4.B.CustomerInformationRequirements/ConsumerProtections(Section6.13.).......................24
4.C.MonitoringofConsumerComplaints(Section6.13.2)............................................................25
4.D.ResidentialSubscriptions(Section7.6.2.)...............................................................................25
4.E.DefiningNon-profitsandPublicFacilities(Section8.6.3.).......................................................27
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4.F.DeterminingIncomeEligibility(Section8.13.2.)......................................................................28
4.G.LanguageElectedbytheCustomer(Section8.14.).................................................................29
4.H.SolarforAllProgramEvaluation(Section8.17.).....................................................................29
5.Training.......................................................................................................................................30
5.A.AgencyTraining(Section6.9)..................................................................................................31
5.B.CoordinationwithJobTrainingPrograms-JobRequirements(Section8.10)........................31
5.C.WaiversandNon-ProfitRequirements(Section8.10).............................................................32
5.D.ExpandingtheDefinitionofJobTrainee(Section8.10)..........................................................33
5.E.CoordinationwithJobTrainingPrograms-Forms(Section8.10)............................................34
5.F.ConsistentUseof33%andDefiningTraineeWork(Sections8.10.and8.11.)........................34
5.G.IllinoisSolarforAllCertifiedInstallers(Sections8.10.,8.11.,andNewSection)....................35
6.EnvironmentalJusticeCommunities...........................................................................................37
6.A.DefiningEnvironmentalJusticeCommunities(Section8.15.2)...............................................37
6.B.CommunityDesignations(Section8.15.3)...............................................................................40
6.C.EnvironmentalJusticeCommunities25%Goal(Section8.15.4).............................................41
7.CommunitySolar........................................................................................................................43
7.A.Low-IncomeCommunitySolarPilotProjects(Sections2.6.2.4and8.6.4)..............................43
7.B.Incentivefor100%Low-incomeOwnershipofCommunitySolarProjects(Section6.6.2.)....45
7.C.Co-locationandCo-locationatBrownfields(Section7.3.1)....................................................45
7.D.ProjectExpansion(NewSection).............................................................................................46
7.E.Low-IncomeCommunitySolarProjectInitiative(Section8.6.2.)............................................47
7.F.DeterminingIncomeEligibility-CommunitySolar(Section8.13.2.).......................................48
8.AdjustableBlockProgramRequirements...................................................................................49
8.A.MinimizeAdministrativeBurdenforNon-profits(Sections6.10.,6.14.3.,6.16.,and8.12.)...50
8.B.Collateral(Section6.16.1.).......................................................................................................51
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Introduction November13,2017Attention:MarioBohorquez,PlanningandProcurementBureauChiefViaemail:[email protected]:IllinoisSolarforAllWorkingGroupResponsetoDraftLong-TermRenewableResourcesProcurementPlanTheIllinoisSolarforAllWorking(“WorkingGroup”or“We”)appreciatestheopportunitytorespondtotheSeptember29,2017IllinoisPowerAgency(“Agency”)DraftLong-TermRenewableResourcesProcurementPlan(“DraftPlan”).1TheWorkingGrouprecognizestheobviouscareandthoughttheAgencyhasgiventotheIllinoisSolarforAllProgram.WearepleasedthattheAgencyhas,initsDraftPlanadoptedsomeoftherecommendationstheWorkingGroupoutlinedintheWhitePaper2ontheIllinoisSolarforAllProgramsubmittedbytheWorkingGroupearlierthisyear.RecommendationsforalternativewordingareofferedhereinthespiritofmakingwhatwebelievearenecessaryandcriticalimprovementstotheDraftPlantoensuretheIllinoisSolarforAllProgramisdesignedtomaximizesavingsandauxiliarybenefitsforparticipants,involvecommunitiesthroughoutthestate,ensureconsumerprotection,providehands-ontrainingandaccesstosolarjobs,andbeadaptable,flexibleandsustainable.OurcommentsarefocusedonthefollowingtopicsrelativetotheSolarforAllProgram:Incentives,ProgramAdministration,MultifamilyAffordableHousing,ConsumerProtection,Training,EnvironmentalJusticeCommunities,CommunitySolar,andtheAdjustableBlockProgram.
1. Solar for All Incentives Incentivesshouldbestructuredtoenablesignificantlow-incomehouseholdenergysavingsandtruetangibleeconomicbenefit,notjustenableprogramparticipation.Inordertoofferatangibleeconomicbenefitthatisattractivetoalow-incomecustomerandresultinimmediateandongoingsignificantsavings,theappropriateRenewableEnergyCredit(“REC”)levelsarecritical.Therefore,theWorkingGroupidentifiedthefollowingareasforcommentasitrelatestoSolarforAllincentives:1A)IntegrationwiththeAdjustableBlockProgram;and1B)RECModelingAssumptions.
1https://www.illinois.gov/sites/ipa/Pages/Renewable_Resources.aspx2http://www.lowincomesolar.org/wp-content/uploads/2017/07/20170711-ILSfA-Working-Group-White-Paper_Final_wAppendices.pdf
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1.A. Adjustable Block Program and Solar for All Integration (Sections 2.6.1., 6.5., 8.2.1, and 8.4.5.) WhileallratepayersbenefitfromtheinvestmentstobemadeundertheAdjustableBlockProgram,low-incomeratepayersstandtomostbenefitthroughdirectaccess.Additionally,becausetheseprogramsarefundedbyallratepayersthroughtheCostCapRate(asdescribedonpage43oftheDraftPlan),low-incomeratepayersshouldalsohaveaccesstotheseincentives,toavoidcross-subsidizationissues.SolarforAllprojectsmusthaveaccesstoallavailableincentives,includingtheAdjustableBlockProgram;thesefinancingresourcesareessentialtoensuringthatimpactforSolarforAllProgramismaximized.SeparatingthefundingfortheSolarforAllProgramfromthefundingfortheAdjustableBlockProgramhasthepotentialtocreateprojectcompetitionthatisdisproportionatetotheamountofmoneyavailable.UsingaSolarforAlladderapproachtotheAdjustableBlockProgramwillensuretangibleeconomicbenefitsaredeliveredtomanymoredeservingIllinoisresidents.TheWorkingGroupdeveloped[alternativewording]forthefollowingsections,addressedchronologicallytofollowtheDraftPlanchapters:Chapter2,Section2.6.1.IllinoisSolarforAll-Overview;Chapter6,Section6.5.Adders;Chapter8,Section8.2.1.RelationshipwiththeAdjustableBlockProgram;andChapter8,Section8.4.5.PaymentStructure.
● [AlternativeWordingProposed]: o Chapter2,Section2.6.1.IllinoisSolarforAll-Overview
▪ (p35)“AsdiscussedfurtherinChapter8,theIPAbelievesthattheformer[latter]approachismostappropriate;[fundamentally,theRECscontractedfromprojectsreceivingincentivesunderthisprogramcanalsobe]ultimately,theprogramisadministeredthroughawardingcontractsforconsideration,andthatconsiderationisthedeliveryofaRECusedtosatisfyacomplianceobligationunderSection1-75(c)(1)oftheAct,[asdescribedhereafter].Ultimately,parsingRECdeliverycontractsintotwocomponents—thebasepaymentforaRECdeliverycontractandaseparateincentiveadder,[willallowforthefundsavailableundertheIllinoisSolarforAllProgramtosupportagreaternumberofprojectsthaniftheentirecontractvaluewastobepaidwithIllinoisSolarforAllfunds.AsallprojectswilldelivermultipleRECsoverthe15-yeartimeperiod,therewillbenoproblemindividingthoseRECsbetweentwoseparatecontracts.ContractswillbeenteredintoforthedeliveryofRECstoeithertheAdjustableBlockorIllinoisSolarforallProgramproportionaltotheamountoffundingthatcomesfromeitherfundingsource.].potentiallypaidbyadifferentcounterparty—appearsinconsistentwithaprogramdesignbuiltaround“contracts”ratherthanrebatesorgrants.”
o Chapter6,Section6.5.Adders
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▪ (p100)“ThefollowingsetofAddersareintendedtoadjustthebaseRECpricetomeetspecificadditionalpurposes.Theseincludeadjustingforsystemsize,adjustingfortheadditionalcostsofcommunitysolar,[providingincentivestomeettheobjectivesoftheSolarforAllProgram,]andpotentiallyaccountingforthechangestonetmetering,smartinverterrebatesandfederaltaxcredits.”
o Chapter8,Section8.2.1.RelationshipwiththeAdjustableBlockProgram ▪ (p137)“…theAgencywilladministertheIllinoisSolarforAllProgram[in
conjunctionwith]separatefromtheAdjustableBlockProgram,butbuildingontheprogramdesignoftheAdjustableBlockProgram,withadditionalconsiderationsspecifictoIllinoisSolarforAll.Theseincludeadifferentsetof[higher]incentives[viaanadder],IllinoisSolarforAllspecificcontracts,andadditionalconsiderationstoensurecommunityinvolvement,consumerprotections,andeligibility.”
o Chapter8,Section8.4.5.PaymentStructure ▪ (p144)“ProjectsthatreceiveacontractthroughIllinoisSolarforAllwillnotbe
eligibletoalsoreceiveacontractthroughtheAdjustableBlockProgram.” ▪ (p144Footnote331)Section1-56(b)(3)requiresthatforIllinoisSolarforAll
contracts,“[t]hepaymentshallbeinexchangeforanassignmentofallrenewableenergycreditsgeneratedbythesystemduringthefirst15yearsofoperation.”Sections1-75(c)(1)(L)(ii)and(iii)bothcontainprovisionsrelatedtothevariouscomponentsoftheAdjustableBlockProgramthat,“[t]heelectricutilityshallreceiveandretireallrenewableenergycreditsgeneratedbytheprojectforthefirst15yearsofoperation.”ThesetwoprovisionsfromSection1-56(b)(3)andSection1-75(c)(1)(L)[canbeeasilyreconciled.AsallprojectswilldelivermultipleRECsoverthe15-yeartimeperiod,therewillbenoproblemindividingthoseRECsbetweentheAdjustableBlockorIllinoisSolarforAllProgramproportionaltotheamountoffundingthatcomesfromeitherprogram.Ifdeterminedtobelegallynecessary,theinstallationscanbelegallydeemedtwoseparatesystems/projectsforthesakeofmeetingtheaforementionedrequirements.]aremutuallyexclusiveasonlyoneRECcanbeproduced,transferred,andretiredforeachMWhofgeneration.
● Discussion,DataorDetailedAnalyses: o AstheAgencynotes,thelawstructurallyappearstopermitanincentivepremium
applicabletoSection1-75(c)(1)(K)AdjustableBlockProgramRECcontractprices(withtheIllinoisSolarforAllProgramsimplyentailingtheadministrationofadditionalincentives).Therefore,pleasedonotisolateandlimittheSolarforAllProgram;instead,providehigherincentivesintheSolarforAllProgramasanaddertotheAdjustableBlockProgram.Iftheprogramisnotstructuredinthisway,low-incomecustomerswillhavesignificantlyreducedaccesstofundingunderthisprogram.AstheAdjustableBlockProgramdeclines,theadderfromtheIllinoisSolarforAllProgramshouldincreasetoensuretheendvalueisanincentivelevelthatallowsdevelopers,installers,orthenon-profitthird-partyProgramAdministrator(s)tooffersolaratnoupfrontcosttothe
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income-qualifiedparticipantandofferimmediateandsignificantsavings.Anadderapproachwillresultintangibleeconomicbenefitformanymoreincome-qualifiedIllinoisresidents.
o AnexampleistheMassachusettsSmartProgram3,whichincludesa$.06/kWhadderforlow-incomesolarprojects.
1.B. REC Modeling Assumptions AstheDraftPlaniswrittennow,withoutemphasisplacedonsavings,participantscouldunfortunatelyexperienceanongoingpaymentthatisonlyadollar($1)lessthantheexpectedenergysavings,whichtechnicallycountsasacash-flowpositiveexperience.AssumptionsinmodelingandtheREClevelsthemselvesarecriticaltoprovidingsignificanttangibleeconomicbenefittolow-incomehouseholds.TheWorkingGroupagreeswithSEIAandtheguidingprinciplesintheircommentsonRECpricing.Thatis,thatthegoalshouldnotbetomaximize(or,conversely,tominimize)theRECpricing,butrathertohavetheinputvaluesoftheCRESTmodelbetterreflecttheexpectedconditionsforsolardevelopmentandoperationinIllinois.WesupportSEIA’seffortstoprovidemorerobustinputanddataonthemodelassumptionssharedbyboththeAdjustableBlockandtheIllinoisSolarforAllPrograms.
WearepleasedthattheAgencyrecognizescostsassociatedwithsolardeploymentvarywidelyandhasreflectedthisintheIllinoisSolarforAllProgramthroughdistinctRECpricingforvarioussystemsizes,utilityterritory,andthroughAddersforotherkeycomponents.However,someoftheCRESTmodelinputsusedbytheAgencytoestablishthoseRECpricesareconstantsorchangelinearlywithsystemsizewithinaspecificprojecttype.Itisourexperiencethatthisisnotalwaysreflectiveofrealworldexperienceandcosts.Consequently,wehaverecommendedmorespecificinputvaluesfor:
● Capacityfactors,whichwehavevariedbasedonprojecttype(i.e.,DGversuscommunitysolar);and
● Subscribermanagementforcommunitysolar,whichwehavevariedbysystemsizeandsubscribertype.
WealsoquestionsomeoftheassumptionsthathavebeencarriedoverfromtheAdjustableBlockProgrammodel.Theseincludetaxassumptions,projectusefullife,andcustomersavings.Ultimately,ourgoalisfortheSolarforAllRECincentivestobestructured,atleastinitially,atnocostforparticipationforlow-incomeresidentialcustomers(notjustnoup-frontcost,butnocost),andcanstepdownfromthereasnecessary.
1.B.1. Capacity Factor The17%ACcapacityfactoristoohigh.Werecommenda15%ACcapacityfactor,whichismorerealisticforresidentialsolarinstallations(i.e.fixedaxis,non-idealorientation,andsomeshading)withIllinoisclimatedata. 3 http://www.mass.gov/eea/docs/doer/rps-aps/final-program-design-1-31-17.pdf
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● TheEnergyInformationAgencysaystheaveragecapacityfactornationallyis15%:https://www.eia.gov/todayinenergy/detail.php?id=22832
● Whilecapacityfactorwillchangeregionallyandbysystem,siting,etc.,nodatasuggestsregionalchangestobe17%AC.ThecurrentNRELPVWattsuses14.8%specificallyforChicago:http://pvwatts.nrel.gov/
○ RecommendedChange:CRESTInputs;CellG11;Changefrom17.00%to15.00%forresidentialdistributedgenerationprojects.
1.B.2. Subscriber Management for Community Solar Projects Subscribermanagementcostsaresetinthemodelat$4.98/MWh,withtheadditionofa$7.89/MWhadderformorethan50%residentialsubscribers.PerSEIA’scomments“Theproposed$4.98/MWhcostadderforabasiclargeC&Iofftakeproject(asfewasthreelargerC&Icustomers)islikelytoohigh.However,totheextentmoresmallercustomersareadded,theprojectoperator’scostsincreaseduetocontractvolumeandthepotentialformorefrequentcustomerserviceandcustomerturnover.Theproposed$7.89/MWhcostadderfor50%smallcustomerparticipationisbetoolowformanagementofthiscustomergroup”(seebelow).AsistheassumedcostintheCrestmodelforsubscribermanagement.Forexample,theresultsofa20yearLCOEanalysesbasedsolelyonsystemsizeusingtheElevatecostmodelshowsarangeof$19.87to$40.47.Thisisbasedona40%anchorand60%smallcustomerproject,assumesaminimumof50%smallcustomerandignoresthe<10kWrangeforcommunitysolar:
● RecommendedChange:CrestDashboard;CellC4andD4change,incombinationwithresidentialadder,from$4.98toappropriatevaluestoexceedthefollowingrangesforaminimumof50%residential:
○ <10kW=NA○ 10kW-100kW=$40.47○ 100kW-200kW=$26.11○ 200kWto500kW=$22.08○ 500kWto1MW=$19.87
● Thevaluesshouldbeproportionatelyhigherfora75%residentialminimum.
1.B.3. Community Solar Inputs - Small Customer Subscription Costs Theincentivestructuredoesnotadequatelyincentlow-incomeresidentialparticipationinprojects(i.e.projectswillneedtorelyonaffordablehousing,non-profitorotheranchorpartnersforfinancing).Eveniflow-incomecustomersarewillingtopayforsubscriptions,theystillcannotbeincludedinthefinancialmodelingbecausetheyareperceivedashighriskcustomers.Thiscanbeaddressedthroughresidentialadders.GRIDAlternativesrecommendsatleasta$.03kWhresidentialadder.
1.B.4. Tax Assumptions ThemodelshouldnotassumeSolarforAllprojectsfornon-profitsandLow-IncomeDistributedGenerationIncentiveprojectswillhaveownerswithtaxappetiteandbefinanceable.Low-incomehouseholdsandnon-profitsdonothavepersonaltaxliability.Thirdpartyfinancingrequiressignificant
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transactioncosts.Thisshouldalsobereflectedinanticipatedcostofcapital,interestratesandDebtServiceCoverageRatioassumptions.
● RecommendedChange:CrestInputs;CellG73;ChangefromYestoNoforNon-profitandLow-IncomeDistributedGenerationIncentiveprojects.
● RecommendedChange:CrestInputs;CellQ20,21,22Changetoreflect0%taxbenefits. ● RecommendedChange:CrestInputs;Asappropriateinthe“PermanentFinancingsection,
inputsshouldbechangedtoreflectanoverallcostincreasetoserviceDG,multifamilyandnon-profitentities,reflectedintheCrestmodelsthatfeedtheRECpricesforthoseprograms.
1.B.5. Project Useful Life Theprojectusefullifeinthemodelisassumedtobe25yearsbutshouldbe20years.While25yearsisareasonableassumptionforequipmentlife,generallyprojectsarefinancedthroughapowerpurchaseagreement(“PPA”)orprepaidPPAstructurewhicharetypically20years,soitisnotappropriatetoassumetheeconomicsextrapolateoutto25years.
1.B.6. Customer Savings SomemeasureofcustomersavingsmustbeincludedinthemodelsforallSolarforAllPrograms,includingcommunitysolar.SEIAsuggestsintheircommentsthatareasonableassumptionis20%oftheestimatedannualnetmeteringcreditvalueandsuggestsanappropriatewaytocapturethiscostinthemodelisbyreducingthenetmeteringcreditvalueby20%.SolarforAllProgramsshouldreflectahigherlevelofsavings-100%savingsforlow-incomedistributedgenerationand50%savingsforlow-incomecommunitysolarisnotunreasonable,basedonexperienceinlow-incomesolarprogramsinothermarkets.
○ AmethodforbuildingthisintotheCrestmodelsuggestedinconversationswiththeindustryistoprovidethat:
■ 1)SolarforAllcommunitysolarprojectsaremodeledtorequireahigherInternalRateofReturn(“IRR”)thananyothersolarprojects(i.e.14%insteadof10%);or
■ 2)ThatallSolarforAllprojectsaremodeledtorequireahigherIRRthanothersolarprojects.Thisisbecausetheseprojectsaremorecomplex,carryahigherriskandincurhighertransactioncostsassociatedwithfinancing.
○ RecommendedChange:CrestInputs;CellG62;Changefrom12.00%to14.00%forcommunitysolarprojects.
2. Solar for All Program Administration Ataminimum,theAdjustableBlockProgramandSolarforAllProgramneedtohaveseparateProgramAdministrators.WeappreciatetheAgencyreflectedthisimportantprogramdesignmeasureintheDraftPlan.Usingmultiplenon-profitSolarforAllProgramAdministratorswhohavegreaterspecializationinthediverseprogramareaswillensurededicatedexpertiseandexperiencegoesintoprogramdesign,managementandoptimization.Itwillalsoensurethatdedicatedattentionisgiventooutreach,participantservicesandconsumerprotections.Thenon-profitSolarforAllProgramAdministrator(s)will
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functionasconsumeradvocatesandprovidemission-alignedguidanceandservicestoensurethereisconsistentstatewidemessaging.Thisincludesthepotentialfullrangeofservicesandco-benefitsthatshouldbeintegratedinthesolarinstallations,suchasenergyefficiency,jobtrainingandeducation,etc.Therefore,theWorkingGroupidentifiedthefollowingareasforcommentasitrelatestoprogramadministration,addressedchronologicallytofollowtheDraftPlanchapters:2A)DedicatedProgramAdministrationisaCriticalConsumerProtectionMeasure;2B)RolesofProgramAdministrator(s)inStandardization;2C)Low-IncomeDistributedGenerationIncentiveProgramAdministratorasContractorofRecord;2D)RoleofProgramAdministrator(s)inCustomerReferralstoOtherSolarforAllPrograms;and2E)RuralElectricCooperativesandMunicipalUtilitiesinSolarforAll.
2.A. Low-Income Distributed Generation Incentive Program Administrator as Contractor of Record (Section 2.6.2.1.) AsCalifornia’sSingle-FamilyAffordableSolarHomesProgram(“SASH”)ProgramwastheoriginaltemplateforwhatbecameIllinoisSolarforAllProgramintheFutureEnergyJobsAct(“FEJA”),thisprovisionofthelawisintendedasaconsumerprotectionmeasure.AconsumerprotectioncornerstoneofCalifornia’sSASHProgramisthatinstallationcontractsaredirectlywiththenon-profitProgramAdministrator,whoisalsotheprimaryinstaller,andwhoworkswithvettedsub-contractorstomeettheneedsofthestatewideprogram.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter2,Section2.6.2.1Low-IncomeDistributedGenerationIncentive.
● [AlternativeWordingProposed]:(p38)“Thelawalsoincludesaprovisionthat“[c]ontractsenteredintounderthisparagraphmaybeenteredintowithanentitythatwilldevelopandadministertheprogram,”althoughitispresentlyunclearhowtheadministratorcouldleveragestatefundsforthisuse.”
2.B. Municipal Utilities and Rural Electric Cooperatives in Solar for All (Section 7.4.)
Ruralelectriccooperativesandmunicipalutilitiesincludeenvironmentaljusticeandeconomicallydisadvantagedcommunities.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter7Section7.4.EligibilityofProjectsLocatedinRuralElectricCooperativesandMunicipalUtilities.
● [AlternativeWordingProposed]:(p128-129)[TheSolarforAllProgramAdministrator(s)andtheAgencyshouldengageruralelectriccooperativesandmunicipalutilitiestopro-activelymakethemawareoftheSolarforAllProgramandensurethattheytakestepstoensurethatbenefitscanflowtotheirlow-incomeratepayersthroughavaluationoftheLow-IncomeCommunity
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SolarProjectInitiativethatatleastmeetstheminimumrequirementsoftheLow-IncomeCommunitySolarProjectInitiativeasdefinedintheFutureEnergyJobsAct.TheSolarforAllProgramAdministrator(s)andtheAgencydonothaveauthoritytoforceruralelectriccooperativesormunicipalutilitiestoadopttheminimumpoliciesnecessarytoenableSolarforAllparticipation,however,everyeffortshouldbemadetoensuretheSolarforAllProgramistrulystatewide.]
2.C. Dedicated Program Administration is a Critical Consumer Protection Measure (Section 8.8.) Low-incomesolarandenergyefficiencyprogramsacrossthecountryhavelearnedthatprogramstargetedatlow-incomehouseholdsrequireadifferentapproachthanthoseforthegeneralmarket.Marketingandcommunicationsneedtobecustomizedandstandardized,theorganizationsdeliveringthemessageneedtobetrustedbymembersofthecommunity,andmoretimeneedstobededicatedtoimplementationinordertoovercomeexistingbarriers.WeexpectthatthesameprincipleholdstruefortheSolarforAllProgram,andthereforewillrequireamorerobustapproachtoProgramAdministration.
TheSolarforAllProgramwillbenefitfrommultipleadministrators.TheProgramAdministrator(s)forSolarforAllshouldbenon-profit(s)andhaveamorerobustroletoensureconsumerprotectionandpositiveexperienceforincome-qualifiedparticipants.Usingmultipleadministratorswhohavegreaterspecializationinthediverseprogramareaswillensurededicatedexpertiseandexperiencegoesintoprogramdesign,managementandoptimization.Itwillalsoensurethatdedicatedattentionisgiventooutreach,participantservicesandconsumerprotections.Thenon-profitProgramAdministratorswillfunctionasconsumeradvocatesandprovidemission-alignedguidanceandservicestoensurethereisaconsistentstatewidemessagearoundthepotentialfullrangeofservicesthatcouldbeintegratedinthesolarinstallations,suchasenergyefficiency,jobtraining,etc.Additionally,manysmaller,non-profitand/orless-resourcedorganizationsmaywanttodeveloponeormultipleprojectsunderSolarforAll.RequirementslikeGATSorM-RETSregistrationmaybeentirelynewfortheseorganizationsandtechnicalassistanceanddedicatedattentionfromProgramAdministrator(s)toanswertheirquestionswouldbeexpected.TheAgencymayviewmultipleSolarforAllProgramAdministratorsasunnecessaryorasingleAdministratorasmoredesirablebecausecommunicationismoreeasilymanaged.Ifthatisthecase,itisextremelyimportantthesingleSolarforAllProgramAdministratorberequiredtohirededicatednon-profitimplementersforthediversearrayofprogramsofferedunderSolarforAlltodesignandimplementprogramswiththefullbreadthoftheirknowledgeandexperience,todesignapproachesthatmeettheneedsofthetargetaudiencestheyunderstand.RelatedtotheissueofProgramAdministration,theWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.8,ProgramAdministration.
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● [AlternativeWordingProposed]:(p153)o [ProgramAdministrator(s)aremission-basednon-profit(s).Non-profit(s)functionas
consumeradvocatesandprovidemission-basedguidanceandservicestoensurethereisaconsistentstatewidemessagearoundthepotentialfullrangeofservicesthatcouldbeintegratedinthesolarinstallations,suchasenergyefficiency,jobtraining,etc.Non-profit(s)arealsobettersuitedtoleverageoutsideprograms,resources,anddollarsforthebenefitofSolarforAll.]
o [TheAgencymaychooseasingleAdministratorforSolarforAll.Ifthatisthecase,itisextremelyimportantthesingleAdministratorberequiredtohirededicatednon-profitimplementersforthediversearrayofprogramsofferedunderSolarforAlltodesignandimplementprogramswiththefullbreadthoftheirknowledgeandexperience,todesignapproachesthatmeettheneedsofthetargetaudiencestheyunderstand.]
o TheIllinoisSolarforAllProgramAdministrator(s)willatminimum:▪ Verifyprojecteligibility[Obtainlists,centralize,andconductincomeeligibility
andverification]inIllinoisSolarforAllandcoordinatethisinformationwiththeAdjustableBlockProgramAdministrator(whowillprocesstheactualapplicationmaterials).Thiswillinclude,butisnotlimitedto,incomeverification,reviewofcommunityinvolvementinprojects,reviewofjobtrainingcoordination,andreviewofIllinoisSolarforAllconsumerprotectionssuchas[especially]verificationofensuringtangibleeconomicbenefitsflowtolow-incomeparticipants.[Actasthecentralizedsourceforincomeverificationinpartnershipwithtrustedcommunitybasedorganizations.Managescentralizeddatabaseforallparticipants,includingparticipantinfo,status,construction,incentiveandfinancingdataandmaterials.ProgramAdministrator(s)willworkwiththeAgencytodetermineandadjusteligibilitycriteria,asneeded,toensureaninclusiveSolarforAllProgramthatmeetsthegoalsofthestatute.]
▪ [Developandprovidecontracts,disclosureformsandbrochuresforApprovedVendorsandtrustedcommunitybasedorganizations.DevelopingclearandconsistentinformationontherelationshipbetweentheendcustomerandtheApprovedVendoriscriticaltoensuringthatthefiscalrisksandcontrolsofthisprogramareproperlyandprudentlymanaged.]
▪ Coordinatethedistributionoffundingforgrassrootseducationeffortsbycommunity-basedorganizations.ApriorityforthisfundingwillbetopromotetheavailabilityoftheIllinoisSolarforAllPrograminEnvironmentalJusticeCommunitiestoachievethegoalof25%oftheincentivesbeingallocatedtothosecommunities.
▪ FacilitateApprovedVendorsmeetingtheadditionalrequirementsoftheIllinoisSolarforAllProgram.Inparticular,theProgramAdministratorwillactasaliaisonbetweenApprovedVendorsparticipatingintheprogramsandorganizationsprovidingjobtraining.TheProgramAdministratorwillalsoworktoinformApprovedVendorsofenergyefficiency,weatherization,lead
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abatement,andotherprogramopportunitiesthatcouldprovideadditionalbenefitstoparticipants.
▪ ProvideguidanceandeducationtoApprovedVendors,communitygroups,localgovernmentagencies,andothersonhowtoleverageothergovernmentalpoliciestofacilitatelow-incomesolarprojects[andassistwithenergyburdenreductionforlow-incomeresidents].Otherrelevantpoliciesincludeaffordablehousing,economicdevelopment,publicfinance,andtaxpolicies,atthefederal,state,andlocallevel.TheAdministratorwillactasliaisonwithothergovernmentalagenciesthatadministersuchprogramstofacilitatetheiruseonsolardevelopment.
▪ ProvidereportstotheAgencyandtheCommissiononaquarterlybasisonthestatusoftheProgramincluding,butnotlimitedto,numberofapplicationsreceived,numberofapplicationsapproved,numberofprojectscompleted,RECpayments,paymentsforandstatusofgrassrootseducationefforts(ifapplicable),andasummaryoftechnicalassistanceprovided.
▪ [DeveloptheProgramManual(s)andProgramGuidelinesinsuchawayastoensuremaximumsavings/maximumbenefitforincomequalifiedparticipants.PublishandmaintainacomprehensiveProgramManualcoveringallaspectsoftheSolarforAllProgram.]
▪ [WorkwithApprovedVendorstohelpmeetProgramrequirementsandprovidetechnicalassistance,ifneeded(e.g.GATSorM-RETSregistration.]
▪ [Providerecommendationsforadjustmentandimprovementaspartoftheindependentbi-annualindependentevaluationoftheSolarforAllProgram.]
▪ [WorkwiththeAgencytofacilitatetherelationshipbetweentheAdjustableBlockProgramandtheSolarforAllProgramtoensurelow-incomeratepayershaveaccesstoallavailableincentives.]
▪ [WorkwiththeAgencytodetermineandadapttangibleeconomicbenefitbenchmarkstoensurelow-incomehouseholdsrealizemeaningfulsavingsfromaccesstosolar.]
● Discussion,DataorDetailedAnalyses: o ConsumerprotectionisparamountandtheProgramAdministrator(s)mustbeconsumer
advocatesandcentralizeimportantactivitieslikeincomeverification.ProgramAdministrator(s)shouldberesponsibleforallmarketingandoutreach,developingtranslatedmaterials,applicationintake,developingfinancingmodels,installations,coordinationwithApprovedVendors,programreports,andensuringfreehands-onandpaidjobtrainingopportunitiesareavailablestatewide.Itiscriticalthatoversightexistsontheinstallationcontractsandtermstoensurelow-incomefamiliesreceivemaximumbenefitsandrisksareminimized.ThiscanbestbeachievedbyhavingtheProgramAdministrator(s)roleincludedevelopmentofstandardizedinstallationcontractsthatensureparticipantbenefitismaximizedforallprojects.
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o California’sLow-IncomeWeatherizationProgram4(“LIWP”)providesanexampleofadiverseprogramofferingtaskedtoasingleProgramAdministratorthathiresdedicatedsub-contractorsbasedonprogramtype.LIWPinstallssolarphotovoltaics,solarhotwaterheaters,andenergyefficiencymeasuresineligiblelow-incomesinglefamilyandmulti-familydwellingsindisadvantagedcommunities.Eachofthoseofferingsrequiresspecializedfocustodeliverinacosteffectiveandefficientmanner,whichisexecutedbyhiringqualifiednon-profitsub-contractors.
2.D. Role of Program Administrator(s) in Preparing Marketing and Contractual Materials (Section 8.14.) TheroleofProgramAdministrator(s)anddefiningtangibleeconomicbenefitisdirectlylinkedtothefinancialliabilityoflow-incomecustomers.StandardizedinformationprovidedbyProgramAdministrator(s)andhigherandadequateREClevelswillallowApprovedVendorstooffertangibleeconomicbenefitsthatwillbeattractivetolow-incomecustomers,ideallywithnofinancialliabilityrequiredontheirpart.Whileweagreethatprohibitingloanssecuredbyalow-incomecustomer’shomeorequityisagoodidea,forexample,thebetterandpreferredapproachisdesigningtheSolarforAllProgramwithadequateREClevelstoeliminatethefinancialliabilityoflow-incomehouseholdsandtheoverallneedforsuchaloanprohibition.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.14ConsumerProtection.
● [AlternativeWordingProposed]: o (p162)“Marketingandcontractualmaterialsmustbeinthelanguagespokenbythe
customer[andpreparedbytheProgramAdministrator(s).ApprovedVendorsmustparticipateintrainingprogramsofferedbytheProgramAdministrator(s)onguidelinesformarketingandcontractingwithcustomersundertheProgram,aswellasrequiredstandarddisclosures.].”
o (p161)“[StandardCc]ontractsbetweenApprovedVendors/installersand[tobeenteredintoby]programparticipantsforLow-IncomeDistributedGenerationprojectswillberequiredtooffercleardisclosureofthecostssevendaysbeforeconsummationofthetransaction,andtherighttocancelthetransactionwithinsevenbusinessdaysafterconsummation.”
o (p162)“[StandardCc]ontractsforfinancialproductsmustoffertermsthatincludeforbearance.Ifaprogramparticipantcanshowgoodcauseinarequestforforbearance,financiersmustmustoffera)suspensionoftotalpaymentsforuptothreemonths,b)asuspensionofinterestpaymentsforuptosixmonths,orc)areductionininterestratesforuptotwelvemonths.Missedrevenuesmayberecoveredlaterinthestageofthecontract,butnointerestmaybeapplied.”
4http://www.csd.ca.gov/LIWP.aspx
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o (p162)“[StandardCc]ontractsmaynotincludeprepaymentpenalties.” ● Discussion,DataorDetailedAnalyses:
o Low-incomecustomersaremoredifficulttoreach,andassucharecostlierforinstallersanddeveloperstoserve.UndertheDraftPlan,ApprovedVendorshavetoshowtheAgencytheirmarketingandcontractualmaterialsperSection6.13;however,itmakesmoresensefortheProgramAdministrator(s)todevelopandprovidestandardizedmaterials.ThismakesiteasierfortheApprovedVendors,andensuresconsumerprotectionsfortheProgramAdministrator(s).Inuniquesituationsinwhichastandardcontractmaynotapply,theProgramAdministrator(s)shouldprovidetechnicalassistancetoarriveataworkablesolution.ApprovedVendorsneednotbeprecludedfromusingtheirownmarketingmaterials,buttheyshouldberequiredtoofferthestandardizedmaterials,aswell.
o BothCalifornia’s(SASH)programandLIWPprogramforsingle-familyinstallationshaveutilizedathird-partyownership(“TPO”)modelsincetheCaliforniaCommissionapprovedthemodelin2015.(TPOwasnotallowedattheonsetofeitherprogramduetoconsumerprotectionconcerns)However,theCommissionrequiredtheProgramAdministratortodevelopamodel,anddemonstratethemodelmet12baselinerequirements,allensuringconsumerprotectionisparamountandparticipatinghouseholdsreceivemaximumbenefitwhileminimizingriskstoparticipation.TheCommissionapprovesinstallationcontractsforTPOdevelopedundertheProgramAdministratorinapublic,stakeholder-engagedprocesswherecontractsarefiledpublicly,andandmajorchangesrequireaCommissionresolutionandvotingprocess.TheonlyinstallationcontractsthatcanuseTPOineitherprogramarethosedevelopedbytheProgramAdministratorandapprovedbytheCommission.
2.E. Role of Program Administrator(s) for Customer Referrals to Other Solar for All Programs (Section 8.14.) Asaconsumeradvocate,theProgramAdministrator(s)shouldensurelow-incomehouseholdparticipantsinSolarforAllProgramhaveaccesstosolarofferingsbestsuitedtotheirpersonalsituations.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.14.ConsumerProtection.
● [AlternativeWordingProposed]:(p161)“Fordistributedgenerationprojects,aroof[andelectrical]inspectionreportisrequiredtoensurethatprojectsarebeinginstalledonroofs[andhomes]thatwillnotneedsubstantialrepairs.Ifrepairsareneeded,theApprovedVendormustidentifytheplanfortherepairsandhowtheywillbepaidfor,ensuringthatsuchcostsdonotplaceanunsustainablefinancialburdenontheparticipant.[TheProgramAdministrator(s)
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shouldreferandhelpenrollthoseparticipantsexperiencingunsustainablefinancialburdentotheLow-IncomeCommunitySolarProjectInitiative.]”
● Discussion,DataorDetailedAnalyses:Together,MillenniumSolarElectric,GRIDAlternatives,QualityElectricalConstruction,andacrewoftraineesparticipatedinademonstrationprojectforanincome-qualifiedhomeownerinsoutheastChicagoinOctober2017.Inconductingoutreachtofindanincome-qualifiedandwillinghomeowner,GRIDAlternativesconductedelevensitevisits.Threeoftheelevenhomeswerenewconstructionandeightwereexistingconstruction.Oftheeightexistingconstructionhomes,onehadabadroofandfiveneededelectricalserviceupgrades.Electricalupgradescancostbetween$1800-$3000.WhilethisisasmallsamplingofhomesinsoutheastChicago,itisindicativeofhousingstockandissuesApprovedVendorsandCertifiedInstallersmayencounter.
3. Multifamily Affordable Housing MultifamilyaffordablehousingsolarisanexcitingaspectoftheSolarforAllProgram.Inthelegislation,thelanguagethatreferencesmultifamilyhousingisbroadandsitsoutsideofanyspecificprogramdescription.5Individualprogramlanguageisthenincludedinsubsequentsections.6Significantpercentagesofhouseholdsatorbelow80%AMIliveinmultifamilypropertiesacrossIllinois.Anylow-incomehouseholdqualifiedforbenefitsunderSolarforAll.WhileSolarforAlllanguagetalksspecificallyaboutlessthan80%AMIhouseholdsinmultifamilyproperties“wherethelow-incomecustomerdoesnotdirectlypayforenergy”(referringtomaster-meteredbuilding),italsogenerallysuggeststhatmultifamilypropertiesshouldbebeneficiariesfromSolarforAllPrograms.Therefore,theWorkingGroupidentifiedthefollowingareasforcommentasitrelatestomultifamilyaffordablehousingsolar,addressedchronologicallytofollowtheDraftPlanchapters:3A)DedicatedMultifamilyProgram;and3B)IllinoisSolarforAllMultifamilyEligibilityandIncomeVerification.
3.A. Dedicated Multifamily Program (Section 8.6.1.) IncludingmultifamilybuildingsintheLow-IncomeDistributedGenerationIncentiveProgramsignificantlyreducesthenumberofsingle-familyhouseholdsthatcanbeservedintheProgram.MoresobecausethecurrentDraftPlandoesnotstackbenefitsacrosstheAdjustableBlockProgramandIllinoisSolarforAll.Withthecurrentdesign,thenumberof1-4unitbuildingsservedannuallywouldbeabout350to450andmultifamilybuildingsabout30to50buildings.ThisassumesahigheraverageinstalledcapacityformultifamilybuildingsqualifyingforalowerRECprice.Italsoassumesmultifamilybuildingswouldmakeupaboutonethirdofthepropertiesparticipating.Bycreatingaseparateprogramformultifamilybuildingsandpullingfundsfromeachofthefourprograms,1-4unitbuildingswouldinclude480to600buildingsandmultifamilyabout90to150 5 Section20ILCS3855/1-56(b)(2)6 20ILCS3855/1-56(b)(2)A,B,CandD
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buildings.Theprogramswillserveabout50%morepropertieswithlittleimpacttootherprogramparticipants.Both1-4unitand5+unitmultifamilybuildingswouldalsobebetterservedwithseparateprogramsbecausethetargetaudiencesaresignificantlydifferent,incomeverificationwillbedifferentandexistingpipelinesofparticipantsfromenergyefficiencyandotherlow-incomeprogramsaredifferent.TheskillsandexperiencefromProgramAdministrator(s),partnersandvendorsarealsoverydifferent.WeproposedthataformalfifthIllinoisSolarforAllProgrambecreatedwiththefollowingallocations:
Program: % 2018-19 Allocation
Distributed Generation 20% $6.0M
Multifamily 15% $4.5M
Non-profits / Public Facilities 15% $4.5M
Low-income Community Solar 30% $9.0M
Community Solar Pilots 20% $6.0M
Withthisprogramdistinctioninmind,theRECpricesusedintheLow-incomeDistributedGenerationIncentiveProgram,aswellastheexistinglanguageintheDraftPlanaroundmultifamilyqualifications,tangiblebenefitsandincomeverificationallworkforcreatingaframeworkforanewmultifamilyprogram.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.6.1Low-incomeDistributedGenerationIncentive.
● [AlternativeWordingProposed]:(p146)“TheLow-IncomeDistributedGenerationIncentiveisintendedtoprovidefundingforphotovoltaicprojectslocatedonindividualhomesand[two-to-fourunit]multi-familybuildings.”
● Discussion,DataorDetailedAnalyses:○ Inthelegislation,thelanguagethatreferencesmultifamilyhousingisbroadandsits
outsideofanyspecificprogramdescription.■ Section20ILCS3855/1-56(b)(2):“ContractsundertheIllinoisSolarforAll
Programshallincludeanapproach,assetforthinthelong-termrenewableresourcesprocurementplans,toensurethewholesalemarketvalueoftheenergyiscreditedtoparticipatinglow-incomecustomersororganizationsandto
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ensuretangibleeconomicbenefitsflowdirectlytoprogramparticipants,exceptinthecaseoflow-incomemulti-familyhousingwherethelow-incomecustomerdoesnotdirectlypayforenergy.”
○ Significantpercentagesofhouseholdsatorbelow80%AreaMedianIncome(“AMI”)liveinmultifamilypropertiesacrossIllinois.Anylow-incomehouseholdshouldqualifyforbenefitsunderSolarforAll.WhileSolarforAlllanguagetalksspecificallyabout<80%AMIhouseholdsinmultifamilyproperties“wherethelow-incomecustomerdoesnotdirectlypayforenergy”(referringtomaster-meteredbuilding),italsogenerallysuggeststhatmultifamilypropertiesshouldbebeneficiariesfromSolarforAllPrograms.ElevateEnergyproposestheAgencyconsideradistinctprogramthatservesmultifamilyhousing,separatefromthefourprogramsidentifiedspecificallyinthelegislation.Targetingmultifamilypropertyownersservinglow-incomehouseholdswillrequiredistinctmarketingandoutreach,compliance,consumerprotectionandqualityassurance.
○ Section20ILCS3855/1-56(b)(4):“InthecourseoftheCommissionproceedinginitiatedtoreviewandapprovetheplan,includingtheIllinoisSolarforAllProgramproposedbytheAgency,apartymayproposeanadditionallow-incomesolarorsolarincentiveprogram,ormodificationstotheprogramsproposedbytheAgency,andtheCommissionmayapproveanadditionalprogram,ormodificationstotheAgency'sproposedprogram,iftheadditionalormodifiedprogrammoreeffectivelymaximizesthebenefitstolow-incomecustomersaftertakingintoaccountallrelevantfactors,including,butnotlimitedto,theextenttowhichacompetitivemarketforlow-incomesolarhasdeveloped.FollowingtheCommission'sapprovaloftheIllinoisSolarforAllProgram,theAgencyorapartymayproposeadjustmentstotheprogramterms,conditions,andrequirements,includingthepriceofferedtonewsystems,toensurethelong-termviabilityandsuccessoftheprogram.”
○ InIllinois,33%ofthe5.3millionhousingunitsaremultifamilyand50%ofallaffordablehousingunitsinthestatearemultifamily.InChicago,thepercentageofmultifamilyhousingisabove75%.Thisunderscorestheimportanceofrecognizingmultifamilypropertiesasadistinctsegmentoftheaffordablehousingmarketespeciallygiventhatitoftenservesashousingforhouseholdsof80%orlessAMI.Multifamilyiscommonlydefinedas5+unitresidentialpropertiesandaffordablehousingisdefinedashouseholdswithrentlessthan30%ofmonthlyincome.Whileaffordablehousingisnotthesameashouseholdswithincomeof80%orlessofAMI,thereisahighcorrelationbetweenthetwo–especiallyrelevantbecausedataisnotavailableforhousingunittypesby80%AMIorless.
○ Significantpercentagesofhouseholdsatorbelow80%AMIliveinmultifamilypropertiesacrossIllinois,accordingtoanalysisbyElevateEnergyshownbelow:NotethatIllinoishasmorethan400,000,2-4unitaffordablehousingproperties.ElevateEnergyrecommendsthatthesepropertiesbeincludedintheLow-IncomeDistributedGenerationIncentiveProgramforsingle-familyhousing.
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○ TheAgencycanconsideranincentivebasedonaperwattvalue.Forexample:$1.00to$1.25perwatt,whichcouldrepresent30%oftheinstallationcostdependingonsystemsize.PrivatemultifamilypropertyownerscancouplethisincentivewithRECsandtaxbenefitstomakesolarmoreaffordable.Developerscandothesameinordertoofferdiscountedthird-partyownershipmodelsorevenmodelswherefullownershipofthesystemistransferredtopropertyownersafterassetdepreciation(6years).
1-4units 5+units
AveragesystemsizeinkW 4 5 15 25
Averagesystemcost$$/watt $3.00 $3.00 $2.75 $2.75
AveragesystemcostTOTAL $12,000 $15,000 $41,250 $68,750
SRECvaluebasedoncurrentLTRRPP $8,471 $10,588 $25,926 $43,210
SRECvalueS/watt $2.12 $2.12 $1.73 $1.73
ITCvalue $3,600 $4,500 $12,375 $20,625
MACRsvalue $3,570 $4,463 $12,272 $20,453
Totalincentivevalue $15,641 $19,551 $50,573 $84,288
TotalincentivevalueS/watt $3.91 $3.91 $3.37 $3.37
Totalincentivesbucket(85%ofallocatedamount) $3,788,400 $3,788,400 $1,288,056 $1,288,056
Total#projects 447 358 50 30
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DGw/only1-4 MFonly
AveragesystemsizeinkW 4 5 15 25
Averagesystemcost$$/watt $3.00 $3.00 $2.75 $2.75
AveragesystemcostTOTAL $12,000 $15,000 $41,250 $68,750
SRECvaluebasedoncurrentLTRRPP $8,471 $10,588 $25,926 $43,210
SRECvalueS/watt $2.12 $2.12 $1.73 $1.73
ITCvalue $3,600 $4,500 $12,375 $20,625
MACRsvalue $3,570 $4,463 $12,272 $20,453
Totalincentivevalue $15,641 $19,551 $50,573 $84,288
TotalincentivevalueS/watt $3.91 $3.91 $3.37 $3.37
Totalincentivesbucket(85%ofallocatedamount) $5,100,000 $5,100,000 $3,830,000 $3,830,000
Total#projects 602 482 148 89
3.B. Illinois Solar for All Multifamily Eligibility and Income Verification (Section 8.13.2.)
Itisimportanttoensurethatlow-incomehouseholdsareadequatelyandeasilyservedbyallprograms.Toaccomplishthis,werecommendthatmultifamilybuildingsthatqualifyforFEJA'senergyefficiencyprogramsreceivereciprocalapprovalforIllinoisSolarforAllPrograms.Thisservestocreateamorestreamlinedexperienceforbuildingowners,easetheburdenonadministrators,andcreateastrongpipelineforsolarprojects.
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TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Section8.13.2.DeterminingIncomeEligibility.
● [AlternativeWordingProposed]:(p160)Fortwotofourunitbuildings,atleasttwoofthehouseholdsinthebuildingmustqualify.Fora[5+unit]multi-familybuilding,[anybuildingthatqualifiesforenergyefficiencyworkwillautomaticallyqualifyfortheLow-incomeDistributedGenerationIncentiveProgramandMultifamilyProgram,witheligibilitycriteriaprovidedbySolarforAllProgramAdministrator(s).Ifthebuildingisnotparticipatinginenergyefficiencyprogramsfor]eitheratleast50%ofthehouseholdsmustqualify,orthebuildingownermaydemonstratethatthebuildingmeetsthedefinitionof“affordablehousing”containedintheIllinoisAffordableHousingAct,namely: “Affordablehousing’meansresidentialhousingthat,solongasthesameisoccupiedbylow-incomehouseholdsorverylow-incomehouseholds,requirespaymentofmonthlyhousingcosts,includingutilitiesotherthantelephone,ofnomorethan30%ofthemaximumallowableincomeasstatedforsuchhouseholdsasdefinedinthisSection."
4. Solar for All Consumer Protection TheWorkingGroupappreciatestheobviouscareandthoughttheAgencyhasgiventocraftingconsumerprotectionmeasuresforcustomersparticipatingintheIllinoisSolarforAllProgram.WearepleasedthattheAgencyhas,initsDraftPlan,adoptedsomeoftherecommendationsthattheWorkingGroupoutlinedintheWhitePaper7ontheIllinoisSolarforAllProgramsubmittedbytheWorkingGroupearlierthisyear.Forexample,Section8.9oftheDraftPlan,“QualityAssurance,”adoptstheWorkingGroup’srecommendationtoconductrandominspectionsofinstallationstoassurecustomersreceivehighqualityinstallations.AndwhileweseetheneedtoexpandandclarifytheroleoftheProgramAdministrator(s),wearepleasedthattheAgencyhasgiventhoughttotheimportantrolethisentitywillplayinmakingtheProgramasuccess.TheWorkingGroupagreeswithmanyotherconsumerprotectionmeasuresincludedintheDraftPlan,aswell,suchastherequirementforcleardisclosures,requiringmarketingandcontractualmaterialstobeinthecustomer’spreferredlanguage,etc.Indeed,mostofthecommentsinthissectionreflectagreementinabroadsensewiththeAgency’sdraftconsumerprotectionprovisions.SuggestionshereareofferedinthespiritofmakingwhatwebelievearenecessaryandcriticalimprovementstotheAgency’salreadyratherthoroughdraftconsumerprotections,especiallyandmostimportantlyasitrelatestocash-flowpositiveexperienceforlow-incomecustomersandensuringtangibleeconomicbenefitsactuallyresult.Therefore,theWorkingGroupidentifiedthefollowingareasforcommentasitrelatestoconsumerprotection,addressedchronologicallytofollowtheDraftPlanchapters:4A)TangibleEconomicBenefit;4B)CustomerInformationRequirements/ConsumerProtections;4C)MonitoringofConsumer
7http://www.lowincomesolar.org/wp-content/uploads/2017/07/20170711-ILSfA-Working-Group-White-Paper_Final_wAppendices.pdf
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Complaints;4D)ResidentialSubscriptions;4E)DefiningNon-profitsandPublicFacilities;4F)DeterminingIncomeEligibility;4G)LanguageElectedbytheCustomer;and4H)SolarforAllProgramEvaluation.
4.A. Tangible Economic Benefit (Sections 2.6.3., 8.2.2., 8.11., and 8.14.) TheWorkingGroupisthrilledthattheAgencyhasdirectednoupfrontcostsandacashflowpositiveexperienceforlow-incomeresidentialparticipantsintheIllinoisSolarforAllProgram.However,withoutemphasisplacedonsavings,participantscouldunfortunatelyexperienceanongoingpaymentthatisonlyadollar($1)lessthantheexpectedenergysavings,whichtechnicallycountsasacash-flowpositiveexperience.ItiscriticalasavingsgoalbeincludedforApprovedVendorsandProgramAdministrator(s)toensuresolarofferingsaredesignedforlow-incomeresidentialcustomerstoresultinwhatistrulytangibleeconomicbenefit.SomemeasureofcustomersavingsmustbeincludedinthemodelforallSolarforAllPrograms,includingtheLow-IncomeCommunitySolarProjectInitiative,aswediscussedinSection1.B.6.SEIAsuggestsintheircommentsthatareasonableassumptionis20%oftheestimatedannualnetmeteringcreditvalueandsuggestsanappropriatewaytocapturethiscostinthemodelisbyreducingthenetmeteringcreditvalueby20%.SolarforAlllow-incomecustomersavingsshouldbeatahigherlevel-100%savingsforlow-incomedistributedgenerationand50%savingsforlow-incomecommunitysolarisnotunreasonable,basedonexperienceinlow-incomesolarprogramsinothermarkets.Importantly,theWorkingGroupdeveloped[alternativewording]forthefollowingsections:Chapter2,Section2.6.3.IllinoisSolarforAll—AdditionalRequirements;Chapter8,Section8.2.2.EconomicBenefits;Chapter8,Section8.11.AdditionalRequirementsforApprovedVendors;andChapter8,Section8.14.ConsumerProtection.
● [AlternativeWordingProposed]: o Chapter2,Section2.6.3.IllinoisSolarforAll—AdditionalRequirements
▪ (p40)“[e]achcontractthatprovidesfortheinstallationofsolarfacilitiesshallprovidethatthesolarfacilitieswillproduceenergyandeconomicbenefits,ataleveldeterminedbytheAgencytobereasonable,fortheparticipatinglow-incomecustomer.”[ForthepurposesoftheSolarforAllProgram,reasonableshallbedefinedasreducinglow-incomeresidentialcustomers’electricenergyburdentobewithinthestatewideaverage,orothersavingsmetrics/targetsdeemedapplicablebyProgramAdministrator(s)andtheAgencytoensuresignificantsavingsforparticipants.Savingstargetsmaybeachievedcomprehensively,i.e.bycoordinatingalow-incomecustomersservicesundertheSolarforAllProgramwithenergyefficiencymeasurestobewithinaveragestateelectricenergyburden,forexample.TheProgramAdministrator(s)shouldreviewApprovedVendors'proposedofferingstoensuremaximumsavingsandtangibleeconomicbenefitforlow-incomeresidentialcustomers.TheProgram
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Administrator(s)andtheAgencywilldetermineandassesssavingsmetrics/targetsonaregularbasisandadjustifnecessary.]
o Chapter8,Section8.2.2.EconomicBenefits ▪ (p138)“Tocreate“tangibleeconomicbenefits”ata“reasonable”level,the
Agencyhasdeterminedthateligiblelow-incomeresidentialparticipantsintheIllinoisSolarforAllProgramshouldnothavetopayup-frontcostsforon-sitedistributedgeneration,orpayanup-frontfeetosubscribetoacommunitysolarproject.Further,participationintheprogramshouldresultinimmediate,[significant,and]reliablereductionsinenergycostsforthoseresidentsorsubscribers.Thismeansthatanyongoingpaymentwouldbesmallerthantheexpectedenergysavings[andsupport,forexample,reducinglow-incomeresidentialcustomerselectricenergyburdentobewithinaveragestateenergyburden,orothersavingsmetrics/targetsdeemedapplicablebytheProgramAdministrator(s)andtheAgency].”
▪ (p139)“EnsuringthattangibleeconomicbenefitsflowdirectlytoprogramparticipantscanalsobeaccomplishedbyprovidingdocumentationtotheAgencythattheprojecthasnoupfrontcosttotheparticipant,thatthevalueofincentivesareusedbytheprojectdeveloper/installertooffsetcoststotheparticipant,andthattherewillnotbeongoingcostsorfeestotheparticipantthatexceedthevalueofenergyproduced.Theresultingeconomicbenefitstoprogramparticipantswillbeaccruedthroughthe[entire]valuetheyreceivethroughnetmeteringfortheenergythesystemproduces.AsdescribedinSection8.11,ApprovedVendorsparticipatingintheIllinoisSolarforAllProgramwillberequiredtodocumenthowtheyensurethatthisgoalis[significantsavingsare]met.[TheProgramAdministrator(s)shouldreviewApprovedVendors'proposedofferingstoensuremaximumsavingsandtangibleeconomicbenefitforlow-incomeresidentialcustomers.TheProgramAdministrator(s)andtheAgencywilldetermineandassesssavingsgoalsonaregularbasisandadjustifnecessary.]”
o Chapter8,Section8.11.AdditionalRequirementsforApprovedVendors ▪ (p156)“Demonstrationthatforlow-incomedistributedgenerationand
communitysolarprojectsthat[low-incomeresidential]participantsdonothaveanyup-frontpayments[andexperiencesignificantongoingsavings.]”
o Chapter8,Section8.14.ConsumerProtection ▪ (p161)“Inorderto“ensuretangibleeconomicbenefitsflowdirectlytoprogram
participants,”ApprovedVendorsmustalsoverifythatforresidentialprogramparticipantstherearenoupfrontpaymentsfordistributedgenerationprojects,orup-frontsubscriptionfeesforcommunitysolarprojects.ApprovedVendorsmustalsoprovidedocumentationtoboththeprogramparticipantcustomerandtotheProgramAdministrator[(s)]onhowtheprojectswillresultin[significantongoingsavingsforlow-incomeresidentialcustomersand]acash-flowpositiveexperiencefortheparticipant(s).[TheProgramAdministrator(s)
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shouldreviewApprovedVendors'proposedofferingstoensuremaximumsavingsandtangibleeconomicbenefitforlow-incomeresidentialcustomers.TheProgramAdministrator(s)andtheAgencywilldetermineandassesssavingsgoalsonaregularbasisandadjustifnecessary.]
● Discussion,DataorDetailedAnalyses: o WhilesomeSolarforAllProgramcustomersmaybeabletopayforsubscriptionsand
serveasfinanceableofftakersforprojects,mostlow-incomecustomerswillnotbeableto.ItisimperativethattheSolarforAllProgramincentivesarestructuredsuchthatthesecustomers-whoarethehardesttoserve-arestillprioritizedunderthisprogram.Withoutemphasisplacedonsavings,participantscouldunfortunatelyexperienceanongoingpaymentthatisonlyadollar($1)lessthantheexpectedenergysavings.AsoutlinedintheDraftPlan,theAgencyisalreadyrequiringdocumentationfromApprovedVendorstoprovetheyaredeliveringeconomicbenefitsandacashflowpositiveexperience.OfferingsundertheSolarforAllProgramshouldsupportreducinglow-incomeresidentialcustomers’electricenergyburdentobewithinaveragestateelectricenergyburden;anaverageIllinoislow-incomecustomerenergyburdenis13%statewidecomparedtoanaveragestateenergyburdenof6%8.Thissavingstarget,oranyothersavingstargetdeemedapplicablebytheProgramAdministrator(s)andtheAgency,maybeachievedcomprehensively,i.e.bycoordinatingalow-incomecustomersservicesunderthisprogramwithenergyefficiencymeasures.TheProgramAdministrator(s)shouldreviewApprovedVendors'proposedofferingstoensuremaximumsavingsandtangibleeconomicbenefitforlow-incomeresidentialcustomers.TheProgramAdministrator(s)andtheAgencywilldetermineandassessthesavingsgoalonaregularbasisandadjustifnecessary.
o Exampleswhereminimumsavingsisbuiltintothelow-incomeprogramdesign,statuteand/orregulations:
▪ DistrictofColumbiaSolarforAllProgram:D.C.ActA21-0466,RenewablePortfolioStandardExpansionAmendmentActof2016,Section216(a)9ensuresseniors,smalllocalbusinesses,non-profits,andlow-incomehouseholdsreceiveatleast50%ofthesavings,ascomparedtostandardutilityrates,fromthesolargeneratingequipment.
▪ PAYS:Pay-As-You-Save(PAYS)1080%rulewhereacustomer'sestimatedsavingsequalsorexceedstheirchargesby20%.PAYSfinancingforenergyefficiencyisbeingimplementedbyelectriccooperativesinKansas,Kentucky,andNorthCarolina(respectivelycalledHow$martTM,How$martKY,andUpgradeto$ave).11
▪ CaliforniaSASHProgram:ThestatewideprogramadministratorforSASH
8https://www.elevateenergy.org/wp/wp-content/uploads/Energy-burden-in-Illinois_final.pdf9http://lims.dccouncil.us/Legislation/B21-065010https://drive.google.com/file/d/0BzYyDNPW3cwwOFBzc3NyTTF2MEE/view11http://cleanenergyworks.org/blog/pays-financing/
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ensuresthatallsystemsarecash-flowpositiveforalow-incomehouseholdfromdayone.Incentivesaredeliberatelysetataleveltocoverasignificantpercentageofthesystemcost.AnygapsinfinancingbetweentheavailableincentiveandthesystemcostarefilledbytheProgramAdministrator,anon-profitorganizationthatcontributesproceedsfromathird-partyownershiparrangementanditsownphilanthropicfundraisingtoprojects.UndertheSASHTPOoffering,participatinghouseholdshavenofinancialliabilitytothesystemowner.TheSASHprogram’sTPOmodelmustmeet12baselineconsumerprotectionminimumstandards,includingensuringcustomersreceiveatleast50%ofthesavings,ascomparedtostandardutilityrates,fromthesolargeneratingequipment.12Inpractice,theminimum50%savingsisa“floor,”asmostSASHhouseholdsparticipatingintheTPOmodelrealize80%savingsorhigher.
4.B.CustomerInformationRequirements/ConsumerProtections(Section6.13.)ThesecommentsaddresstheAgency’sconsumerprotectionproposalsfortheAdjustableBlockProgram,CommunityRenewableGenerationProjects,andtheIllinoisSolarForAllProgram.Eachoftheseinitiativeswillcreatenewinteractionsandtransactionsbetweenbusinessesandconsumers,customersandcommunities.TheIllinoisSolarforAllWorkingGroupagreeswiththeAgencythatproactiveconsumerprotectionsareessentialtoavoidunfairbusinesspracticesthatcouldharmvulnerableIllinoisresidentsandconsumers.LiketheAgency,theIllinoisSolarforAllWorkingGroupisawareofunfair,recurrentpracticesthathavecharacterizedsomealternativeretailenergybusinessinitiatives.Additionally,environmentaljusticecommunityresidentsareparticularlyvulnerabletoviolationsofconsumerprotectionduetotheeconomicstatusofresidents,previousexposuretocoercivefinancialmechanismsandpredatorypracticesineconomicallydisadvantagedcommunities,andtheconsequencesofenvironmentalharmsforresidenthealth,trustormistrustofgovernmentinstitutions,andmore.TheWorkingGroupaffirmativelysupportsstrongconsumerprotectionprovisionsinthePlanasnotedthroughout.Importantly,theWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter6,Section6.13.CustomerInformationRequirements/ConsumerProtections.
● [AlternativeWordingProposed]:(p113)[TheAgencyspecifiesthatApprovedVendorswillberequiredtocomply,ataminimum,withPart412consumerprotectionregulations.ForentitiesoperatingintheAdjustableBlockCommunityRenewableGeneral,andSolarforAllProgramsthatarenotsubjecttoPart412consumerprotectionregulations,theAgencyidentifiesthefollowingrelevantconsumerprotectionrequirementsasmandatory:83Ill.Admin.CodeSections412.100-412.340,consistingofSubpartB,SubpartCandSubpartDofPart412.]
12http://www.lowincomesolar.org/wp-content/uploads/2016/07/California-Consumer-Protection.pdf
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● Discussion,Data,orDetailedAnalyses:Thisstandard–basedon“anexpectation”and“equivalence”withPart412-shouldbestrengthenedbecauseitisvague,subjectiveandcouldbeinterpretedasmerelyanaspiration.TheIllinoisSolarforAllWorkingGrouprecommendsthattheAgencyspecificallyidentifytheregulatedentitiesintheAdjustableBlock,CommunityRenewableGenerationandSolarForAllinitiativesthataresubjecttoPart412consumerprotectionregulationsandexplicitlyassertthattheseentitiesarerequiredtomeetthesestandards.ForentitiesthatwilloperateintheseprogramsthatarenotsubjecttoPart412,theAgencyshouldspecificallyidentifyrelevantPart412consumerprotectionrequirements,incorporatethembyreferenceandmandatethattheseentitiesmustcomplywiththesestandards.Thiswillcreatemoreobjectiveandverifiableconsumerprotectionstandards.TheIllinoisSolarforAllWorkingagreeswiththeAgencythatadditional,tailoredconsumerprotections-beyondthebaselinePart412requirements–arealsoappropriateandnecessary.
4.C.MonitoringofConsumerComplaints(Section6.13.2)CreatinganorganizedsystemfortrackingandmonitoringconsumercomplaintsfunctionsasaconsumerprotectionbyincreasingbothtransparencyandaccountabilityofparticipatingApprovedVendors.Asaconsumeradvocate,theProgramAdministrator(s)shouldintegratethecreationandmaintenanceofapublicdatabaseintotheirroletoensurethelong-termsuccessoftheSolarforAllProgram.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter6,Section6.13.2.MonitoringofConsumerComplaints.
● [AlternativeWordingProposed]:(p113)Ifwarranted,theProgramAdministrator(s)willrefercomplaintstotheAgencyandtoappropriatestateandfederalagencies,includingtheConsumerProtectionDivisionoftheIllinoisAttorneyGeneral’sOffice,ortheIllinoisCommerceCommission(e.g.,forfailureofinstallerstomaintaintheirstatusasCertifiedDistributedGenerationInstallers).[TheProgramAdministrator(s)shouldbedirectedtomaintainapublicdatabaseofallconsumercomplaints(excising,asappropriate,privateconsumerinformation).TheinformationinthisdatabaseshouldbeintegratedwithinformationaboutcomplaintsreceiveddirectlybytheIllinoisAttorneyGeneral,IllinoisCommerceCommissionandotherstateregulatoryandenforcementagencies.Thepublicdatabaseshouldidentifypracticesthatgiverisetoconsumercomplaintsbycategory,locationandbusiness.]
● Discussion,Data,orDetailedAnalyses:Thiscomprehensive,integrateddatabasewillenableasystematicanalysisofbusinesspracticesthatgiverisetoconsumercomplaintsbycategory,locationandbusiness.Thiswillenableappropriatelyscaledregulatoryandenforcementresponsestorecurrentconsumercomplaints,whilealsoinformingmembersofthepublicastheyparticipateininteractionsandevaluatepotentialtransactionswithbusinessentities.
4.D. Residential Subscriptions (Section 7.6.2.) TheIllinoisSolarforAllWorkingGroupacknowledgestheAgency’sworktodeveloptheomnibuslistof
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existingfederalandstatelawsthataredesignedtoprotectconsumersfromunfairbusinesspractices.TheIllinoisSolarforAllWorkingGroupsuggeststheAgencyidentifythemostimportant,substantiveaspectsoftheseexistingconsumerprotectionstatutesthatapplytotheAdjustableBlock,CommunityRenewableGenerationandSolarForAllinitiatives.ThiswillenabletheIllinoisCommerceCommission(“ICC”)andpublicparticipantstoidentifyandcommentoninconsistencies,redundanciesandgapsinthecompletepackageofconsumerprotectionsthatwouldapplytointeractionsandtransactionsbetweenbusinessesandconsumers.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter7,Section7.6.2.ResidentialSubscribers.
Table7-1:FederalStatutesthatApplytoCommunitySolar
Statute Topic
CAN-SPAMAct Electronicmarketing
ConsumerLeasingAct Leasingdisclosures
ElectronicFundsTransferAct Consumerrightsinelectronicfundtransfers
EqualCreditOpportunityAct Discriminationincredittransactions
FairCreditReportingAct Collectionanduseofconsumerinformation
FederalTradeCommissionAct Unfairanddeceptivetradepractices
Magnuson-MossWarrantyAct Consumerproductwarranties
RighttoFinancialPrivacyAct Financialprivacyfromgovernmentintrusion
TruthinLendingAct Lendingdisclosuresandstandardization
TelephoneConsumerProtectionAct Telemarketingandautomatedtelephoneequipment
UnfairDeceptivePracticesAct(UDAAP) Misleadingfinancialproductsandservices
UniformCommercialCode Salesandcommercialtransactions
Table7.2IllinoisStatutesthatApplytoCommunitySolar
Statute Topic
ConsumerFraudandDeceptiveBusinessPracticesAct(815ILCS505)
Enrollment,marketing,billing,andcollectionbyelectricserviceproviders
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ElectronicMailAct(EMA)(815ILCS511) Regulatese-mailsolicitations
TelephoneSolicitationsAct(815ILCS413)andtheRestrictedCallRegistryAct(815ILCS402)
Regulatestelemarketingpractices
PersonalInformationProtectionAct(815ILCS530)
Requirescompaniesthatcollectpersonalinformationtotakereasonablemeasurestoprotectitandreportunauthorizedaccesstoconsumer’spersonalinformation.
● [AlternativeWordingProposed]:(p133)[“Theselawsandregulationsprovideastartingpoint
forprotectingconsumers,buttheirenforcementagenciestypicallyonlytrackandenforcegoodmarketingpracticesiftriggeredbyconsumercomplaints.Inordertoensurethatsubscribersarewell-informedandthusaffordedadequateconsumerprotections,theAgencywillrequirethatallprojectsadheretothefollowingtermsandconditionsforsubscriptions.”AspartofitssubmissiontotheIllinoisCommerceCommission,theAgencywillincludeanAppendixthatidentifiesthemostimportantprotectionsinthereferencedconsumerprotectionlaws.]
4.E. Defining Non-profits and Public Facilities (Section 8.6.3.) InputisrequestedbytheAgencyontheappropriatedeterminationofnon-profitandpublicfacilitiesthatshouldbeeligibleforincentivesintheprogram.
Thenon-profitsandpublicfacilitiesabletoaccessthisincentivestreamoftheSolarforAllProgramshouldbeservinglow-incomecommunitymemberstoadheretothestatutorygoalsoftheProgram.Theproposedlanguagebelowprovidessomeguidelinesonthewaysthroughwhichservinglow-incomecommunitymemberscanbeidentified,aswellasaspecificationforadjustingoradaptingthedefinitionifuptakeislow.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8Section8.6.3.IncentivesforNon-profitsandPublicFacilities.
● [AlternativeWordingProposed]:(p150) o [Thenon-profitsandpublicsectorcustomersthatinsomemannerservelow-income
communitiesshouldbegivenspecificconsiderationgiventheobjectiveoftheIllinoisSolarforAllProgramisinpart,“tobringphotovoltaicstolow-incomecommunities.”]
o [Eligiblenon-profitsandpublicfacilitiesareorganizationsthatactascriticalserviceproviders(e.g.youthcenters,hospitals,schools,homelessshelters,seniorcenters,communitycenters,placesofworship,churches,affordablehousingprovidersincludingpublichousingsites)and/orserveat-riskorlow-incomeindividuals,families,andcommunities,includingenvironmentaljusticeandhistoricallyunderservedcommunities,intheirmissions.Ifapplicable,thoseorganizationsshouldseektoprovide
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andallocatethebenefitsoflocallygeneratedsolarenergytoincome-eligiblehouseholds.]
o [Government,non-profit,andtax-exemptentities,includingthosewithIRS501(c)(3)or501(c)(4)determinations,shouldberequiredtosubmitverificationoftheirtax-exemptstatustobeeligibleforthepublicfacilitiesandnon-profitincentives.]
o [Anynon-profitorpublicfacilitymustmeetthestandardsdescribedinSection8.11relatedtoprojectshavingsufficientconnectionto,andinputfrom,low-incomecommunitymembers.]
o [TheProgramAdministrator(s)forSolarforAllshouldworkwiththeAgencyandcommunitystakeholderstoadjustoradaptthedefinitionofeligibilityifprogramuptakeisloworotherwisedifficultbythetimeofthefirstindependentevaluation.TheProgramAdministrator(s)and/ortheAgencymayconsideradditionalpublicfacilitiesandcommunitystakeholdersshouldsuggestadditionalpublicornon-profitfacilitiesthatdirectlyservelow-incomecommunitiesinwaysbeyondthoseexplicitlyspecified".]
4.F.DeterminingIncomeEligibility(Section8.13.2.)Acentralizedincome/eligibilityverificationprocessexecutedbythechosenSolarforAllProgramAdministrator(s)isanecessaryconsumerprotectiontheAgencyshouldadopt.ThismeasurewouldprotectcustomerinformationaswellasreduceAgencyburdenbyminimizingrequireddirectcommunicationwithApprovedVendors.AsnotedinSection8.8,incomeverificationshouldbecentralizedbytheProgramAdministrator(s)toensureconsumerprotection.ApprovedVendorswillnotwanttodealwiththeaddedcostofincomeverification,andparticipatinghouseholdsshouldnotberequiredtoprovidesensitiveincomeinformationtoallApprovedVendors;rather,theyshouldworkwiththeProgramAdministrator(s)directlyandinastandardizedwaytoprovidethisincomeinformation.TheProgramAdministrator(s)canobtainlistsofincome-qualifiedindividualsfromotherprograms,orconductoutreachtoqualifiedclients.RatherthanhavingtheProgramAdministratorspotcheckalltheApprovedVendor’smethods,materials,andreporting,acentralizedapproachtoincomeverificationgreatlyincreasestheefficiencyoftheprogramandminimizesoreliminatesmisinformationorbadactors.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.13.2DeterminingIncomeEligibility.
● [AlternativeWordingProposed]:○ (p160)“TheAgencyproposesseveralapproachestodetermining[theProgram
Administrator(s)handleandcentralize]incomeeligibilityfortheIllinoisSolarforAllProgram,[andthatcustomersthatcandemonstrateparticipationinotherlow-incomeprograms(LEAP,SNAP,federally-assistedhousing,etc.)willautomaticallyqualifywithoutfurtherneedtodemonstrateincomeeligibility.TheProgramAdministrator(s)willpublishalistofpre-qualifiedorganizations,whomayapplytobeincludedonthislistonanannualbasis].”
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○ (p161)“ItwillbetheresponsibilityoftheApprovedVendor[ProgramAdministratororitsdesignatedauthority]totracksubscribersanddocumentincomeeligibilityforcommunitysolarprojects.ApprovedVendorswillberequiredtoreporttotheAgencyonsubscriptionratesonceayear[andworkwiththeProgramAdministrator(s)oritsdesignatedauthoritytomaintainsubscriptionrates].”
4.G.LanguageElectedbytheCustomer(Section8.14.)TheWorkingGroupnotestheAgency’sworktodevelopenhancedconsumerprotectionprotocolsforSolarForAllPrograminitiativesinEnvironmentalJusticeCommunities(“EJCs”)andsuggestsspecificchangesregardinglanguageneedsofcommunitymembers.
TheIllinoisSolarforAllWorkingGroupsupportsthe“languageelectedbythecustomer”standardbecauseitisobjectiveandverifiable.ThisstandardisqualitativelybetterthantheARES-derivedalternative-whata“reasonableperson”wouldconcludeisthecorrectlanguagetousetotransactbusiness.“Electedbytheconsumer”isalsoamoreprotectivestandardthan“spokenbytheconsumer”becauseaninteractionmaybeinitiatedinEnglish,causingaconsumertocontinueinEnglish,eventhoughthatindividualmayprefertointeractandconductbusinessinanotherlanguage.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.14.ConsumerProtections.
● [AlternativeWordingProposed]:(p162)[AllcommunicationsbetweenbusinessentitiesandconsumersaspartoftheAdjustableBlock,CommunityRenewableGenerationandSolarforAllProgramInitiatives,aswellasallmarketingandcontractualmaterials,mustbeinthelanguageelectedbytheconsumer.]
4.H.SolarforAllProgramEvaluation(Section8.17.) TheWorkingGroupsupportstheuseofapublicstakeholderprocesstodevelopcriteriafortheindependentevaluatortouseinreviewofandreportingontheprogramandperformanceofthethird-partyProgramAdministrator(s).WerecommendsupplementarymeasuresbetakentofacilitatemeaningfulparticipationofenvironmentaljusticecommunitiesintheprocessandsuggestonecategoryofmeasurestobeincludedintheinitiallistinthePlan.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.17.
● [AlternativeWordingProposed]:(p168)“Section1-56(b)(6)requiresthatthisPlanincludeanapproachforindependentevaluationoftheIllinoisSolarforAllProgram.Specifically,itcallsfor: Atleastevery2years,theAgencyshallselectanindependentevaluatortoreviewandreportontheIllinoisSolarforAllProgramandtheperformanceofthethird-partyprogramadministratoroftheIllinoisSolarforAllProgram.Theevaluationshallbebasedonobjectivecriteriadevelopedthroughapublicstakeholderprocess.Theprocessshallincludefeedbackandparticipationfrom
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IllinoisSolarforAllProgramstakeholders,includingparticipantsandorganizationsinenvironmentaljusticeandhistoricallyunderservedcommunities.ThereportshallincludeasummaryoftheevaluationoftheIllinoisSolarforAllProgrambasedonthestakeholderdevelopedobjectivecriteria.Thereportshallinclude,[butisnotlimitedto],thenumberofprojectsinstalled;thetotalinstalledcapacityinkilowatts;theaveragecostperkilowattofinstalledcapacitytotheextentreasonablyobtainablebytheAgency;thenumberofjobsorjobopportunitiescreated;economic,social,andenvironmentalbenefitscreated;[measurestoevaluatepartnershipsbetweendevelopersandcommunitystakeholders,]andthetotaladministrativecostsexpendedbytheAgencyand[P]program[A]administrator[(s)]toimplementandevaluatetheprogram.[TheindependentevaluatorwilltakeadditionalmeasuresbasedonrecommendationsspecifiedintheModelGuidelinesforPublicParticipationdevelopedbytheNationalEnvironmentalJusticeAdvisoryCounciltotheU.S.EnvironmentalProtectionAgencytofacilitatemeaningfulinvolvementinthepublicparticipationprocessbybothenvironmentaljusticecommunitiesandthebroadersetofcommunitystakeholdersthatparticipatedintheprogram,includingthemeaningfulinvolvementofenvironmentaljusticecommunitiesandeconomicallydisadvantagedcommunitiesindevelopmentofstakeholderdevelopedobjectivecriteriaorothermeasuresusedinevaluationoftheprogram.]”
● Discussion,DataorDetailedAnalyses:WerecommendthatsupplementarymeasuresbetakentofacilitatemeaningfulparticipationofcommunitystakeholdersintheprocessanddirecttheAgencytobestpracticesdevelopedforuseinregulatorypublicparticipationfortheU.S.EnvironmentalProtectionAgency,whichcanbeadaptedforuseinthepublicprocessaroundprogramevaluation.WealsoputforwardacategoryofmeasurestobeincludedintheinitiallistinthePlantoreflecttheneedtoconsiderhowpartnershipsinandwithenvironmentaljusticecommunitystakeholdersandresidents,aswellaseconomicallydisadvantagedcommunitystakeholdersandresidents,areworkinginevaluatingtheperformanceoftheSolarforAllProgram.
5. Training TheobjectivesofSolarforAllaretopositivelyimpactlocalIllinoiseconomiesbyhelpingovercomecommonbarriersanddevelopapipelinefortraineesfromlow-incomepopulationstoentertheworkforce.WeappreciatetheAgencytakingtimetoconsidertheroleofjobtraineeswithinSolarforAllandtheirmeaningfulinvolvementintheprogram.WealsoappreciatedthattheProgramAdministrator(s)weretaskedwithmaintainingaclearinghouseoftrainingprograminformationforApprovedVendors/IllinoisSolarforAllCertifiedInstallerstoaccess.Thisclearinghousewillbecomeausefultoolinensuringthatjobtraineesareabletofindrelevantandsustainableemploymentinthesolarindustry.TherecommendationsinthissectionseektoexpandandclarifyAgencyproposalsrelatingtojobtrainingopportunities.Therefore,theWorkingGroupidentifiedthefollowingareasforcommentsasitrelatestotraining,addressedchronologicallytofollowtheDraftPlanchapters:5A)AgencyTraining;5B)CoordinationwithJobTrainingPrograms-JobRequirements;5C)WaiversandNon-profitRequirements;5D)Expanding
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theDefinitionofJobTrainee;5E)CoordinationwithJobTrainingPrograms-Forms;5F)ConsistentUseof33%andDefiningTraineeWork;and5G)IllinoisSolarforAllCertifiedInstallers.
5.A.AgencyTraining(Section6.9)TheAgency’sstatedcommitmenttofacilitatingtheemploymentofjobtraineesisacknowledgedbytheWorkingGroup.Thiscommitmentisessentialtoensuringthat2,000jobtraineesby2029,haveemploymentwithinthesolarindustryespeciallywhenconsideringtheadditionalbarrierspeoplefromlow-incomecommunitiesfacewhenseekingemployment.WebelievethattheAgency’scommitmenttoincreasingjobopportunitiescouldbebolsteredbyincreasingtherequirededucationofApprovedVendors/IllinoisSolarforAllCertifiedInstallers.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter6,Section6.9ApprovedVendors.
● [AlternativeWordingProposed]:(p107)“ApprovedVendors[willberecognizedas“IllinoisSolarforAllCertifiedInstallers,and]willhavetoagreetothefollowingterms:ParticipateinregistrationandcompleteanytrainingdevelopedbytheAgency[,includingtrainingforhiring,retaining,andpromotingreturningcitizensandfostercarealumni.]”
● Discussion,DataorDetailedAnalyses:ItisimportanttheAgencyuseitscommitmenttotrainingtofacilitateaccesstojobsforall,especiallycommunitieswithlowerincomes,peopleofcolor,women,fostercarealumniandreturningcitizens.Inprovidingthistrainingtoindustryplayers,theAgencyplaysanactiveroleinensuringaccesstocommunitieshistoricallyunderrepresentedintheenergytechnologyworkforce.
5.B.CoordinationwithJobTrainingPrograms-JobRequirements(Section8.10)TheAgencyproposesApprovedVendors/IllinoisSolarforAllCertifiedInstallersdemonstrateatleast33%oftheirprojectsincludeoneormoretraineesfromthesolartrainingpipeline.ThePlandoesnotdefinewhichprojectswouldbeconsideredeligibletomeetthe33%requirement.ItisimportanttodefinethescopeofconsideredprojectsbystatingapplicableprojectsincludeallFEJAinstallationsexceptforutilityscalesolar.TheWorkingGroupthereforedeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.10CoordinationwithJobTrainingPrograms.
[AlternativeWordingProposed]:(p155)“IPAproposesthatApprovedVendors[/IllinoisSolarforAllCertifiedInstallers]whoparticipateintheIllinoisSolarforAllProgramshoulddemonstratethatatleast33%ofprojectsincludetheuseofoneormorejobtrainee(s)fromthesolartrainingpipelineprogramorotherclassificationof“jobtrainee”providedbyIPAforSolarforAll.Forthe33%ofprojectsthatareusedtomeetthisqualification,thenumberoftraineesoneachofthoseinstallationprojectswouldbebasedonthesizeoftheeachinstallation.For
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installsupto10kW,atleast1jobtraineewouldmeetthetrainingrequirement.Largerinstallswouldrequireaproportionaladditionoftraineesgettingaminimumof8hoursofworkexperienceeachper10kWofinstallationsize[throughoneofthefollowingoptionsintheprogram:communitysolar,distributedresidentialand/orpublicfacilitiesdistributedgeneration]..”
5.C.WaiversandNon-ProfitRequirements(Section8.10)Inordertomaximizetheemploymentofjobtrainees,theAgencyshouldprovidemoredetailonhowtheProgramAdministrator(s)ensurethatApprovedVendors/IllinoisSolarforAllCertifiedInstallerstakeeverysteppossibletofindtraineesforaprojectbeforeapplyingforawaiverandwhatthisprocesscouldlooklike.Tomaximizebenefitstolow-incomecommunities,theAgencyshouldalsoprovideoptionsforlessresourcedorganizationslikenon-profitsorcommunitybasedorganizationstostillmeetthehiringrequirement.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.10.CoordinationwithJobTrainingPrograms.
● [AlternativeWordingProposed]:(p155)“TheAgencywillconsiderrequestsforwaiversofthisrequirementonacasebycasebasisifanApprovedVendorcandemonstratethatjobtraineesarenotavailableintheareawhereprojectsarebeinginstalled[oriftheIllinoisSolarforAllCertifiedInstallerisanon-profit,forexample,andtheyinsteadprovidefreehands-ontrainingtosolarjobseekersinlieu,orinadditionto,hiringjobtrainees.Thisonthejobtrainingwouldhavetobeataminimumof7hours,withaminimumof2trainees,andcoverskillswithinNABCEPPVAssociateKnowledgeContentDomains,NABCEP’sPVProfessionalJobTaskAnalysiscategories,orNABCEP’sPVTechnicalSalesJobTaskAnalysismajortopicareasaslistedbelow:NABCEPPVAssociateKnowledgeContentDomains:
○ PVMarketsandApplications○ SafetyBasics○ ElectricityBasics○ SolarEnergyFundamentals○ PVModuleFundamentals○ SystemComponents○ PVSystemSizingPrinciples○ PVSystemElectricalDesign○ PVSystemMechanicalDesign○ PerformanceAnalysis,MaintenanceandTroubleshooting
NABCEPPVProfessionalJobTrainingAnalysisareas
● DirectionworkingontheInstallation● SystemDesign● andSystemCommissioning
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NABCEP'sPVTechnicalSalesJobTaskAnalysismajortopicareasof:QualifytheCustomer;
○ SiteAnalysis;○ ConceptualDesign;○ FinancialCosts,Incentives,andSavings;○ FinancialBenefitAnalysisandFinancing;○ Non-financialBenefitAnalysis;○ PerformanceAnalysis;○ PrepareProposals
● NABCEPJobTasksAnalysesgetupdatedatvariousintervals.SolarforAllrequirementsassociatedwithNABCEPjobtaskanalysesshallbeupdatedtotheircomparabledescriptions,within2monthsofNABCEP’sreleaseofupdates.TheAgencywillrequiretheadministratorprovideanannualassessmentmeetingwithcommunitygroups,trainers&industrytoassistwithdetermininggapsinrecruitment,training,andjobplacement.]”
● Discussion,DataorDetailedAnalyses:TheAgencyshouldbesensitivetothevariousbusinessmodels,includingnon-profits,thatmaydevelopprojectsundertheSolarforAllProgram.TheProgramAdministrator(s)shouldcreateafeedbackmechanismforprogramparticipants.Sincejobtraininghasnotbeenidentifiedyet,waiversareimportanttobetteradapttheprogramandidentifyspecifictrainingneedsinregionsacrossthestate.
5.D.ExpandingtheDefinitionofJobTrainee(Section8.10)Toensurethatasmanytraineesthroughoutthestateareabletoaccessthejobopportunitiesavailableinthegrowingsolarindustry,theAgencyshouldnotlimitthedefinitionoftraineetotheverynarrowlyfundedsolartrainingpipelineprogram.ToexpandthisdefinitiontheWorkinggroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.10CoordinationwithJobTrainingPrograms.
● [AlternativeWordingProposed]:○ (p154)“TheavailabilityofjobtrainingopportunitiesforSolarforAllprojectsdepends,
inpart,ontheavailabilityofgraduatesofthesolartrainingpipelineprogram[andothertrainingmodelsthatmayexistoraredevelopedasthesolarindustrygrows].”
○ (p155)“TheAgencyinfersthatgraduatesofthoseprograms[orothertrainingmodels]couldreasonablybeconsidered“jobtrainees”forthepurposesoftheLow-incomeDistributedGenerationIncentivewithinSolarforAll.”
● Discussion,DataorDetailedAnalyses:ItisimportanttheAgencyexpandthedefinitionofjobtraineetofacilitateaccesstotrainingandjobsforall,notjustthegraduatesofthesolartrainingpipelineprogram.Consideringadditionaltrainingprogramsalsoexpandstheopportunitiestraineesconsider,asotherjobtrainingsalsoincludepreparationfornon-installationpositionsinthespheresofeducation,outreach,recruitingandcustomerserviceforsubscribers,sales,andmarketing.
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5.E.CoordinationwithJobTrainingPrograms-Forms(Section8.10)Inordertotracktrainees,gaininsightintotheirexperiencethroughouttheprogram,andintegratefeedbackmechanismsintotraining,wesuggesttheSolarforAllProgramAdministrator(s)createandprovideastandardizedformtofacilitatethisinformationgathering.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.10CoordinationwithJobTrainingPrograms.
● [AlternativeWordingProposed]:(p155)“TheApprovedVendors[/IllinoisSolarforAllCertifiedInstallers]willberequiredtodocumenttheuseofjobtrainees,andtoprovidea[filledoutstandardizedtrackingdocumentationdevelopedbyProgramAdministrator(s),withadetailedrecordofonthejobtrainingexperiencesandprospectsofhiringthetraineeforofficialworkoutsideofthetrainingcontext.Followupdocumentationforeachtraineehiredwillbepreparedeachyeartoassesslongtermsuccessoftheprogram].”
● Discussion,DataorDetailedAnalyses:Thiscompletedformwouldprovideinformationoneachtrainee's’experiencewithskillsassessments,training,jobplacement,andnextstepsafteracceptingajoboffer.Forinstancewhethertheycontinuewithadvancedtraining,careeradvancement,etc.?Werecommendfollow-upwithtraineesatleastonceayearforlongtermtrackingofsuccessesthatresultfromtheprogram.
5.F.ConsistentUseof33%andDefiningTraineeWork(Sections8.10.and8.11.)Theword“portion”shouldreferbacktotherequirementsfortheApprovedVendors/IllinoisSolarforAllCertifiedInstallersandspecificallysay“33%”consistentlythroughoutthePlantoprovidequantifiablebenchmarksratherthangeneralrequirements.TheWorkingGroupdeveloped[alternativewording]forthefollowingsections:Chapter8,Section8.10.CoordinationwithJobTrainingProgramsandSection8.11.AdditionalRequirementsforApprovedVendors.
● [AlternativeWordingProposed]: ● Chapter8,Section8.10.CoordinationwithJobTrainingPrograms
● (p155)“companiesparticipatinginthisprogram…shallcommittohiringjobtraineesfor[33%]oftheirlow-incomeinstallations”.
● Chapter8,Section8.11.AdditionalRequirementsforApprovedVendors ● (p156)“ForprojectsthatreceivetheLow-incomedistributedgeneration
incentive,acommitmenttohirejobtraineesfor[atleast33%]oftheprojects.[Ifforevery3consecutiveSolarforAllinstallationprojectsbyanApprovedVendor/IllinoisSolarforAllCertifiedInstaller,thereisn’toneprojectthatincludesapprovedparticipationofatrainee,theApprovedVendor/IllinoisSolar
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forAllCertifiedInstallermustsubmitawaivertocontinueworkingonSolarForAllprojects.Workcompletedbythetraineemustfitinto3categoriesthatareinlinewiththeNABCEPPVInstallerjobtaskanalysis13categories:
● DirectlyWorkingontheInstallation○ Safeguardagainsthazards○ Installraceways○ InstallDCPVsystemconductors○ InstallACPVsystemconductors○ Installgroundingandbondingsystems○ Completeutilityinterconnectionpoint○ Installsystemmonitoring,control,andcommunication
hardware○ Installbatteryequipment○ Installground-mountedstructure○ Installbuilding-mountedsystem○ InstallPVmodules
● SystemDesign○ Preparesystemequipmentconfigurationrecommendations○ Preparesystemsizingrecommendations○ Prepareanelectricaldiagram○ Preparestructuralrequirementconsiderations
● SystemCommissioning○ Reviewordevelopcommissioningprotocol○ Completevisualandmechanicalinspection○ Conductmechanicaltests○ Conductelectricaltests○ Verifysystemoperation○ Confirmprojectcompletion○ Orientendusertosystem]
5.G. Illinois Solar for All Certified Installers (Sections 8.10., 8.11., and New Section) TheApprovedVendorprogramismeanttoqualifydevelopers,whetherfor-profitornon-profit,toreserveRECcontractsforprojects.Thesedevelopersmaychoosetoself-performinstallation,butmanywillhireinstallerstoconducttheactualconstructionofthesolarplant.Itistheseinstallers,notthedevelopers,thatwouldhirethejobtraineesthatwillbecomingoutoftheIllinoisSolarforAlljobtrainingprograms.UnlesstheywillholdRECcontracts,installersarenot,norshouldtheybe,requiredtoparticipateintheApprovedVendorprogram.
AcertificationsystemranbytheIllinoisSolarforAllProgramAdministrator(s)wouldsimplifythelow-
13 http://www.nabcep.org/wp-content/uploads/2017/10/NABCEP-PV-Installation-JTA-10-11-17.pdf
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incomesolardevelopmentprocessandprovidegreatertransparencytotheIllinoisSolarforAllRECcontractingprocess.InstallerswouldbeabletoseethequalificationsnecessarytoparticipateinSolarforAllprojectsanddecidetomaketheinvestmenttoqualifyforthiswork.Developerswouldhavealistofinstallersthatarepre-qualifiedtoconductIllinoisSolarforAllwork.TheAgencywouldbeabletomoreeasilyadministertheIllinoisSolarforAllRECcontractingprocessbecauseaRECprocurementapplicationwoulddesignatetheCertifiedInstaller.Webelieveacertificationsystembettermeetstheintentof20ILCS3855/1-56(b)(2)(A)for“anadministrator[to]facilitatepartneringthecompaniesthatinstallsolarpanelswithentitiesthatprovidesolarpanelinstallationjobtraining.”Wealsobelievethisone-timecertificationprogramcouldbeasimple,easyprocess,especiallyforinstallerswithlimitedoroverburdenedstaff.
TheWorkingGroupdeveloped[alternativewording]forthefollowingsections:Chapter8,Section8.10.CoordinationwithJobTrainingPrograms;[NEWSECTION]Chapter8,Section8.10.1IllinoisSolarforAllCertifiedInstallers;andChapter8,Section8.11AdditionalRequirementsforApprovedVendors.
● [AlternativeWordingProposed]:● Chapter8,Section8.10.CoordinationwithJobTrainingPrograms
○ (p155)“Toensurethat“aportion”ofprojectsusejobtrainees,theAgencyproposesthatApprovedVendorswhoparticipateintheIllinoisSolarforAllProgramshoulddemonstratethatatleast33%ofprojectsincludetheuseofoneormorejobtraineesfromthesolartrainingpipelineprogram[theyare,orwilluse,anIllinoisSolarforAllCertifiedInstaller].TheApprovedVendors[thatwilluseaCertifiedinstallertocompleteaSolarforAllproject]willberequiredtodocumenttheuseofjobtrainees,andtowillberequiredtoprovideasummaryoftheirwork.TheAgencywillconsiderrequestsforwaiversofthisrequirementonacasebycasebasisifanApprovedVendorcandemonstratethatjobtrainees[IllinoisSolarforAllCertifiedInstallers]arenotavailableintheareawhereprojectsarebeinginstalled.
TheIllinoisSolarforAllProgramAdministratorwillcoordinatewiththeentitiesprovidingjobtrainingtomaintainaclearinghouseofinformationthatApprovedVendorscanusetoidentifypotentialjobtrainingprogramgraduatestohire.
TheAgencyanditsProgramAdministrator(s)willnotrunthejobtrainingprograms,andtherefore,theAgencyhaslimitedabilitytoensurethesuccessofthoseprogramsineffectivelytrainingnewworkers.Rather,theAgencywillseektoensurethattheIllinoisSolarforAllProgramcreatesemploymentopportunitiesforthosenewworkers[throughtheIllinoisSolarforAllCertifiedInstallersprogram].”
● NEWSECTION:Chapter8,Section8.10.1IllinoisSolarforAllCertifiedInstallersProgram○ (p155)[TheIllinoisSolarforAllProgramAdministrator(s)willcreateanIllinoisSolarfor
AllCertificationincoordinationwithinstallers,jobtrainingprogramcoordinators,stakeholders,andtheAgency.Thegoalofthisprogramistodefinetherequirements,applicationandreportingprocessesforaninstallertoqualifyfor,andmaintain,a
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certificationtoperformIllinoisSolarforAllinstallations.Theminimumqualificationsthatwillbedefinedforthecertificationincludeparticipationinjobtraining,hiring,andutilizationofjobtrainees.AnIllinoisSolarforAllCertifiedInstallermustcommittousingIllinoisSolarforAlljobtraineesforatleast33%oftheinstallationprojectsforanyIllinoisSolarforAllinstallation.]
● Chapter8,Section8.11.AdditionalRequirementsforApprovedVendors.● (p156)“TheadditionalrequirementsforIllinoisSolarforAllinclude:
● Descriptionofplansforcommunityinvolvementinprojects(whereapplicable)● Planforinclusionofjobtrainingopportunities[oracommitmenttouseIllinois
SolarforAllCertifiedInstallers]● ForprojectsthatreceivetheLow-incomedistributedgenerationincentive,a
commitmenttohirejobtrainees[useIllinoisSolarforAllCertifiedInstallersfor]aportionoftheprojects
● CoordinationwiththeProgramAdministratoronincomeverification● AgreementtoallowtheAgencytoreviewandapprovemarketingmaterials
gearedtowardstheIllinoisSolarforAllProgram● AgreementtoensureadditionalconsumerprotectionsasdescribedinSection
8.14● Demonstrationthatforlow-incomedistributedgenerationandcommunitysolar
projectsthatparticipantsdonothaveanyup-frontpayments”
6. Environmental Justice Communities WeappreciatetheconsiderationgiventodefiningandservingenvironmentaljusticecommunitiesandrecognizethattheAgencyhasalreadyintegratedmanyofourpreviousrecommendations.AddressingtheneedsofasmanyenvironmentaljusticecommunitiesaspossibleisoftheutmostimportancetotheWorkingGroup.Thecommentsbelowaresuggestedinthespiritofincreasingthenumberofcommunitiesservedandensuringthatfundsallocatedtoservingenvironmentaljusticecommunitiesaredistributedwithlong-termimpactinmindandinawaythatacknowledgesandaddressesthechallengesthesecommunitiesmayface.Therefore,theWorkingGroupidentifiedthefollowingareasforcommentasitrelatestoenvironmentaljusticecommunities,addressedchronologicallytofollowtheDraftPlanchapters:6A)DefiningEnvironmentalJusticeCommunities;6B)CommunityDesignations;6C)EnvironmentalJusticeCommunities25%Goal.
6.A.DefiningEnvironmentalJusticeCommunities(Section8.15.2)TheIllinoisSolarforAllWorkingGroupstronglysupportsthetheIllinoisPowerAgency’suseofamethodologysourcedfromtheCalEnviroScreenapproachtomappingenvironmentaljusticecommunities,includingtheuseoffederaldatabasesforthekeyindicatorslistedforenvironmentalanddemographicindicators,whichfollowsfromrecommendationsoftheIllinoisCommissionon
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EnvironmentalJustice(“EJCommission”)submittedtotheAgencyinMay2017andsubsequentrecommendationsbytheWorkingGroupinJuly2017.TheWorkingGroupstronglysupportstheindicatorsthemselvesastheylineupcloselywithwhatisutilizedintheCalEnviroScreenmethodologyandrecommendadditionalindicatorsanddatabasesourcesforindicatorstoaugmentthedesignationandmappingprocess.TheinclusionofminoritypercentageinthelistofdemographicindicatorsisstronglysupportedbytheWorkingGroupasitfollowscloselytheU.S.EnvironmentalProtectionAgencydefinitionof“overburdenedcommunity”andreflectsnumerousstudiesindicatingthedisproportionateimpactsofenvironmentalharmoncommunitiesofcolor.Additionally,werecommendachangefromCensustractstoCensusblocksinthemethodology,aswellasaprocessfortestingthemodelandongoingevaluationofthemappingprocessmovingforward.Therefore,theWorkingGrouprecommends[alternativewording]forthefollowingsection:Chapter8,Section8.15.2ProposedApproachforDefiningEnvironmentalJusticeCommunities.
● [AlternativeWordingProposed]:○ (p165-166)“Individualsoverage64”
[AndthefollowingdemographicindicatorsforSensitivePopulationCharacteristicssourcedfromtheIllinoisDepartmentofPublicHealth(“IDPH”):
○ AsthmaEmergencyDepartmentVisits○ LowBirthWeightInfants
AndthefollowingdatabasesourcesfordemographicindicatorsforSensitivePopulationCharacteristicssourcedfromtheIllinoisDepartmentofPublicHealth:
○ AsthmaEmergencyDepartmentVisits○ LowBirthWeightInfants
AndthefollowingdatabasesourcesforenvironmentalindicatorsfromtheIllinoisEnvironmentalProtectionAgency(“IllinoisEPA”):
○ DrinkingWaterWatch○ Siteremediationprogram○ LeakingUndergroundStorageTankIncidentTracking("LUST")○ StateResponseActionProgram○ SolidWastefacilities
● [AlternativeWordingProposed]:CHANGEfromtractto[block(s)]throughout
○ (p165)“TheAgencyproposestodetermineEnvironmentalJusticeCommunitiesbyanalyzingdatafromIllinoisCensus[blocks]forthefollowingenvironmentalanddemographicindicators,asdescribedbytheEJSCREENTool:”
○ (p165)“TheAgencywouldthenweighteachfactorusinganapproachadaptedfromCalEnviroScreen:Censusblockswouldberankedforeachenvironmentalanddemographicindicator,aresultingpercentilescorewouldbefoundforeach[block],andthepercentilescoreswouldbeaveraged,resultinginanenvironmentaland
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demographicscoreforeach[block].Thetwoaverageswouldbemultipliedtogethertodetermineascore.”
● Discussion,DataorDetailedAnalyses: ○ OnadditionofSensitivePopulationCharacteristicsforasthma,lowbirthweightinfants:
AsidentifiedinCalEnviroScreen3.0IdentificationMethodology,IllinoisshouldalsoconsiderSensitivePopulationCharacteristics.AsthmaEmergencyDepartmentVisitsandLowBirthWeightInfantsshouldbeconsideredasadditionalindicators.TheIDPHmaintainsdataonasthmaandhasincorporateditintoaninteractivemap,whichcanbefoundhere:http://www.healthcarereportcard.illinois.gov/map.TheIDPHisamemberoftheEJCommissionandwillcontinuetobeavaluableresourceconcerningtheasthmadatathatitcollects.Lowbirthweightinfantsdatacanbepulledfrombirthrecords,aswellashospitaldischargerecords.TherearesomestatisticsatthecountylevelpostedontheIDPHBirthStatisticswebpage,undertheheading“BirthCharacteristics”:http://www.dph.illinois.gov/data-statistics/vital-statistics/birth-statistics/more-statistics
○ Onuseofcensusblocksinsteadofcensustracts:TheDraftPlanstatesthatdemographicandenvironmentalfactorswillbeevaluatedatthecensustractlevel,whenUSEPAEJSCREENutilizescensusblocks.TheWorkingGrouprecommendsthatdemographicandenvironmentalfactorsbeevaluatedatthecensusblocklevelinaccordancewithUSEPAEJSCREENmeasures.Theprimaryrationaleforthisisthatcensusblocksarethesmallestavailableunitoflandforbothsetsofindicators,andinclusionofdatathatisaggregatedforlargerunitsoflandincensustractsmaydilutehowcloselyindicatorsapproximatelocalizedenvironmentaljusticecommunityimpactsforcensusblocksdirectlyadjacenttocensusblocksthatarelessimpactedbyspecificindicators.
○ OntheuseofDrinkingWaterWatchasadatasource:Thecurrentlistofindicatorsincorporatesonedrinkingwaterindicator.TheWorkingGrouprecommendsincorporationoftheDrinkingWaterWatchdatabase,whichgivesaccesstoWaterSystemFacilities,SampleSchedules,SampleResults,Violations,andEnforcementActions.Thedatabaseislocatedathttp://water.epa.state.il.us/dww/index.jsp.Thesefactorscanaugmentthedesignationandmappingofenvironmentaljusticecommunities,aswellasprovideadditionalcontextforfactorsthatcouldcontributetoself-designation.
○ IllinoisEnvironmentalProtectionAgencyBureauofLanddatabaseinformation:OnlyoneindicatorusedinEJSCREENdirectlyconcernsremediationactivities:proximitytoNationalPrioritiesList(“NPL”)sites.IllinoisEPA’ssiteremediationdatabase,LeakingUndergroundStorageTankIncidentTracking(“LUST”)databaseandstatesitesinIllinoisEPA’sStateResponseActionProgramareadditionalsourcesofinformationthatcouldaugmentthedesignationandmappingofenvironmentaljusticecommunities,aswellasprovideadditionalcontextforfactorsthatcouldcontributetoself-designationbypaintingafullerpictureofenvironmentalconditionsinthestate.Additionally,theIllinoisEPAissuespermitsforthemanagementofnon-hazardouswasteatlandfills,transferstations,compost,andwastestorage,treatment,processing,andrecoveryfacilitiesandthatinformationisaccessibleviathesolidwastedatabase.Solidwaste
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permitinformationisanothersourceofinformationreflectiveoftherelativeenvironmentalburdenimpactingacommunity.
■ Thedatabaselocationsinclude:www.epa.illinois.gov/topics/cleanup-programs/bol-database/index
■ Siteremediation:epadata.epa.state.il.us/land/srp/index.asp■ TheLeakingUndergroundStorageTankIncidentTracking("LUST")database:
www.epa.illinois.gov/topics/cleanup-programs/bol-database/leaking-ust/index■ StatesitesinIEPAStateResponseActionProgram:
epadata.epa.state.il.us/land/ssu/index.asp■ Solidwaste:epadata.epa.state.il.us/land/solidwaste/index.asp
6.B.CommunityDesignations(Section8.15.3)TheIllinoisSolarforAllWorkingGroupstronglysupportstheAgency’sproposaltopostonitswebsitedraftmapsanddataandinvitestakeholderstoreviewandcommentontheresults,aswellasutilizationofthisasaninitialopportunitytorequestself-designationasanEnvironmentalJusticeCommunity,inadditiontosemi-annualupdatingofmapstoreflectself-designationchanges.WealsosupporttheAgency’sproposalthatcommunityboundariescouldbechangedorexpandedtobetteralignwithreal-worldunderstandingsofgeographic,cultural,andotherfactorsbyresidentsoftheboundariesofenvironmentaljusticecommunities.Inaddition,theIllinoisSolarforAllWorkingGrouprecommendsasampletestofthemappingmethodologypriortothecommencementofaproceedingrunincollaborationbetweentheAgencyandtheEJCommission,aswellasongoingevaluationmovingforwardeverytwoyears. TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.15.3EnvironmentalJusticeCommunityDesignations.
● [AlternativeWordingProposed]:○ (p167)“Themapswillbeupdatedonasemiannualbasistoreflectanyadditional
requestsforself-designation.”[TheAgencywillrunatrialoftheproposedmethodologylistedinthePlanandwillsharetheresultsofthesamplerunwiththeIllinoisCommissiononEnvironmentalJustice.TheAgencyandtheEJCommissionwillcollaboratetoevaluatethemodelpriortothecommencementofaproceedinginfrontoftheIllinoisCommerceCommission.Additionally,theAgencywillreviewthemethodologyforidentificationofenvironmentaljusticecommunitieseverytwoyearsincollaborationwiththeEJCommissionandinterestedcommunitystakeholders,whichistoincludeapublicprocesswherecommentsaresolicitedonthemodelandwhatadditionalindicatorsshouldbeincludedmovingforward.]
○ (p167)“Thiswillalsoprovideaninitialopportunityforcommunitiestorequestself-designationasanenvironmentaljusticecommunity.”[Communitiesrequestingself-designationwillbeabletosubmitqualitativeandquantitativeevidenceforpurposesofdescribingenvironmentalharmsintheircommunitiesandsubsequentimpacts.
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Communitiesmayincludedescriptionsofpersonalexperiencesofenvironmentalharmsand/orhealthandeconomicconsequencesbycommunitymembers,mediacoverageofrelevantsituationsofenvironmentalharmsorimpacts,andanyotherrelevantevidencesubmittedanddesignatedassuchbycommunitymembersofanycommunityrequestingself-designation.]
● Discussion,DataorDetailedAnalyses:TheIllinoisSolarforAllWorkingGroupsupportsthattheIllinoisPowerAgencyrunasamplecommunityanalysisforasinglecommunityusingtheproposedmethodologywiththeadditionofproposedindicatorsandsharetheresultsofsuchananalysiswiththeEJCommission.WestronglyrecommendthattheEJCommissionandtheAgencycontinuetocollaboratetorefinethemethodologyforIllinoisanddeterminehowthemethodapproximatesqualitativeunderstandingsofenvironmentaljusticecommunitiesinthestateleadinguptotheinitiationofacaseprocessattheICC.InadditiontotheinitialproposedfeedbackprocessalreadylistedintheDraftPlan,wealsostronglyrecommendsthattheEJCdesignationsmethodologybesubjecttoanevaluationeverytwoyearsincollaborationwiththeEJCommissionandinterestedcommunitystakeholdersfromEJCstoensurethatadditionalindicatorsarebeingincorporatedwhererelevant.
6.C.EnvironmentalJusticeCommunities25%Goal(Section8.15.4)TheIllinoisSolarforAllWorkingGroupsupportsallocating25%oftheAgency’sannualbudgetinaccordancewiththe25%goalperthestatuteforenvironmentaljusticecommunitiesfortheLow-IncomeDistributedGenerationIncentive,theLow-IncomeCommunitySolarProjectInitiative,andtheIncentivesforNon-profitsandPublicFacilitiesasspecifiedinthePlan.However,theIllinoisSolarforAllWorkingGroupalsorecommendsamendmentofthestructureforreservingsuchfundsassubsequentlydetailedinordertoallowforappropriatecapacity-buildingneededfortheprocessofproposingprojects.Additionally,theIllinoisSolarforAllWorkingGroupsupportstheprioritizationofgrassrootseducationfundingforenvironmentaljusticecommunitiesandrecommendsfurtherspecificationsonthemeaningofprioritizationbelow.TheWorkingGroupthereforedevelopedthefollowing[alternativewording]toframetheserecommendationsforthefollowingsection:Chapter8,Section8.15.4EnvironmentalJusticeCommunities25%Goal.
● [AlternativeWordingProposed]: ○ (p167)“FortheLow-incomeDistributedGenerationIncentive,theLow-Income
CommunitySolarProjectInitiative,andtheIncentivesforNon-profitsandPublicFacilities,theAgencywillreserve25%ofeachcategory’sannualbudgettosupportprojectsinenvironmentaljusticecommunities.[Ineachdeliveryyear2018,2019,and2020foreachofthethreeaforementionedincentives,thereservedfundswillbepreservedthroughtheendofthedeliveryyearandrolledoverintothebudgetforthenextdeliveryyearuntilthefollowingdeliveryyearforprojectsinenvironmentaljusticecommunities.Areviewofthereallocationprocessandprogramyearsselectedwillbe
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includedinthenextiterationofplandevelopmentin2019.Beginningwithdeliveryyear2021,theAgencywillreserve25%ofeachcategory’sannualbudgettosupportprojectsinenvironmentaljusticecommunities,andifafterninemonthsthesereservedfundsareremainingandunallocatedtoprojectsinenvironmentaljusticecommunities,thefundswillbereleasedforusebyprojectsnotinenvironmentaljusticecommunities.Inalldeliveryyears,]ifthefundsarefullyallocatedtoprojectsinenvironmentaljusticecommunities,thensubsequentprojectsinenvironmentaljusticecommunitieswouldstillbeeligibleusingthegeneralavailablebudgets.”
○ (p167)“TheActalsodirectstheAgencyto“allocateupto5%ofthefundsavailableundertheIllinoisSolarforAllProgramtocommunity-basedgroupstoassistingrassrootseducation.”AsnotedinSection8.8,thatfundingwillbeprioritizedtowardsEnvironmentalJusticeCommunitiestohelpmeetthisgoal.[Forthepurposesofprioritization,3%ofthefundsavailableundertheIllinoisSolarforAllProgramwillbedirectedtowardEnvironmentalJusticeCommunitiestohelpmeetthisgoal.TheAgencywillutilizeresultsfromtheEnvironmentalJusticeCommunityDesignations(Chapter8,Section8.15.3EnvironmentalJusticeCommunityDesignations)ofthisPlantoidentifythecommunitiesfromwhichcommunitystakeholderswillbeprioritizedinreceivingfundstoassistingrassrootseducationundertheprioritizedfunds.Fundsmaybeusedforactivitiesincludingresearchinpreparationofmaterialsforcommunities,communitymeetingsorforumshostedtodisseminatematerials,printingcosts,andtranslationcostsofmaterialsforcommunitiesrequiringmaterialsinlanguagesotherthanEnglish.TheAgencywillcollaboratewiththeEJCommissionfortechnicalassistanceonbestpracticestoconnectcommunitieswiththeopportunitytoengageingrassrootseducation.TheAgencywillallocate1%ofthefundsavailableundertheIllinoisSolarforAllProgramforgrassrootseducationforeachofthefirstfiveprogramyears-2018through2022-suchthatgrassrootseducationfundingbeavailabletocommunitystakeholdersfortheoutsetoftheprogramandtopreventearlyexhaustionofthefunds.TheAgencywillsolicitproposalsfromcommunitiesinthefirstquarterofeachprogramyearbeginningin2018untilfundsareexhausted.MaterialsdevelopedforgrassrootseducationunderthisfundingwillbemadeavailabletomembersofthepublicontheAgency’swebsitesothatcommunitystakeholdersfromeconomicallydisadvantagedcommunitiesthroughoutIllinoiscanutilizeandadaptthesematerialsfortheircommunity’suseingrassrootseducationevenifsuchcommunitiesarenotdirectrecipientsofgrassrootseducationfunds.]
● Discussion,DataorDetailedAnalyses:
○ Onchangestoreservationandreallocationoffunds:TheIllinoisSolarforAllWorkingGrouprecommendsthatreallocationofreservedfundsnotcommenceuntilafterthefirstthreeprogramyearsoftheIllinoisSolarforAllProgram,andbeaccompaniedbyanevaluationofhowthemechanismisfunctioningaspartofthenextiterationofthedevelopmentoftheLong-TermRenewableResourcesProcurementPlanin2019.Therationalecomesdirectlyfromrepresentativesofenvironmentaljusticecommunities
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throughoutthestatewhoareconcernedthatruralcommunities,smallercommunitieswithoutlocalorganizationsworkingonenvironmentaljusticeissues,andcommunitiesneedingtogothroughtheself-identificationprocesspriortosubmittingprojectsforreservedfundswillneedadditionaltimetopreparetosubmitprojects.Thesecommunitieswillalsoneedtheopportunitytogrowtheircapacitytomanageprojectsubmissionsandrespectivepartnerships;andtakethetimeneededtovetsolarenergyconcepts,specificprojectideas,andrespectivecharacteristicswithmembersoftheircommunities.Thistimewillbeneededmostatthefrontendofdeployingtheprogram.
○ Ongrassrootseducationprioritizationandselection:TheIllinoisSolarforAllWorkingGrouprecommendsspecificityaroundwhatamountoffundsisintendedbyprioritizationofEJCommunities,howsuchrecipientswillbeidentified,howfundscanbeused,andwhatprocesswillbeusediscriticaltothefunctionoftheeducationcomponent.TheIllinoisSolarforAllWorkingGroupalsosupportstherecommendationofatimelineandmodelfortheutilizationoffundstomaximizetheabilityofcommunitystakeholderstoengageingrassrootseducationfortheoutsetoftheprogramandtopreventfundsfrombeingexhaustedearlyintheprogramperiod.Additionally,transparency,consistency,andpublicavailabilityofmaterialsdevelopedfortheseprogramswillbekey,asthiswillmaximizetheuseofthemoneytowardgrassrootseducationforthebenefitofeconomicallydisadvantagedcommunitiesthroughoutthestate.
7. Community Solar CommunitysolarisanexcitingaspectoftheAdjustableBlockProgramandSolarforAllProgram.WeappreciatetheamountoftimeandthoughttheAgencyhasgiventhistopicintheDraftPlan.Ourcommentsarefocusedonimprovementstoenableequitableaccesstosolarandtangibleeconomicbenefitforlow-incomehouseholds.Therefore,theWorkingGroupidentifiedthefollowingareasforcommentasitrelatestocommunitysolar,addressedchronologicallytofollowtheDraftPlanchapters:7A)Low-IncomeCommunitySolarPilotProjects;7B)Incentivefor100%Low-incomeOwnershipofCommunitySolarProjects;7C)Co-locationandCo-locationatBrownfields;7D)ProjectExpansion(NewSection);and7E)Low-IncomeCommunitySolarProjectInitiative.
7.A. Low-Income Community Solar Pilot Projects (Sections 2.6.2.4 and 8.6.4) Itisimperativethatthispilotprojectinvestmentmaximizesbenefitsforlow-incomecustomers.Ascurrentlyproposedandinaccordancewiththerequirementsforlow-incomecommunitysolarincludedintheDraftPlan,thelowestRECcostwouldbeachievedbymaximizingboththeamountofthePowerPurchaseAgreementswiththelow-incomesubscribers(e.g.,havethempay99%oftheirenergysupplychargeoffset)andthesizeoftheanchortenant.Thiswouldmaximizecashflowand,thusfinanceability,
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drivedowntheRECpricenecessarytomaketheprojectwork.Theresultislow-incomesubscriberswillreceiveminimalbenefitfromtheproject.ItisthereforeessentialtoincludeadditionalfactorsintheRFPforthiscapacity.TheWorkingGroupdeveloped[alternativewording]forthefollowingsections:Chapter2Section2.6.2.4.Low-IncomeCommunitySolarPilotProjectsandChapter8Section8.6.4.Low-IncomeCommunitySolarPilotProjects.
● [AlternativeWordingProposed]: o Chapter2Section2.6.2.4.Low-IncomeCommunitySolarPilotProjects
▪ (p40)“thelow-incomecommunitysolarpilotprojectsub-programmustbe“competitivelybidbytheAgency,”whichtheAgencyunderstandstobeconsistentwiththeprocurementrequirementsofSection16-111.5ofthePUAwhereapplicable.[Theprocurementprocessshouldensurethatbenefitstolow-incomecustomersaremaximizedthroughthepilotprojects.Inadditiontocost,requestforproposalsshouldconsider:benefittolow-incomecustomers,percentageofelectricbillsavingsandenergyburdenreductionforthesecustomers,coordinationwithenergyefficiencymeasuresandcomplementarylow-incomeprogramming,andjobtrainingopportunityprovidedduringprojectinstallation.Theseadditionalrequestforproposalfactorsshouldbeweightedashighlyascosttoensurethatthebenefitsofthisprocurementaremaximizedforlow-incomecustomers.
o Chapter8Section8.6.4.Low-IncomeCommunitySolarPilotProjects ▪ (p151)“Second,projects“mustresultineconomicbenefitsforthemembersof
thecommunityinwhichtheprojectwillbelocated.”TheAgencybelievesthatthisprovisioncanbepartiallymetbyrequiringprojectstoadheretothesameprovisionsastheLow-IncomeCommunitySolarProjects.[Toensurethisrequirementismet,inadditiontocosttherequestforproposalprocurementprocesswillweighbenefitstolow-incomecustomers,includingpercentageofelectricbillsavingsandenergyburdenreductionforthesecustomers,coordinationwithenergyefficiencymeasuresandcomplementarylow-incomeprogramming,andworkforcetrainingopportunityprovidedduringprojectinstallation.Theseadditionalrequestforproposalfactorsshouldbeweightedashighlyascosttoensurethatthebenefitsofthisprocurementaremaximizedforlow-incomecustomers.TheapplicationforaLow-IncomeCommunitySolarPilotProjectshouldclearlystatethelow-incomebeneficiariestargetedbytheproject,reasonablyestimateanddescribetangibleeconomicbenefit,theprojectednumberofbeneficiariesserved,andtheyearlydollarvalueofthebenefitsperbeneficiary.Theassumptions(e.g.,powerpricing,electricalusageofthelow-incomebeneficiary)andcalculationsusedinthisdeterminationshouldbedocumented.]”
● Discussion,DataorDetailedAnalyses:XcelEnergyColorado’sLow-incomeCommunitySolarRFPisanexample,asdetailedonpage71ofarecentsettlementagreement.14
14https://www.dora.state.co.us/pls/efi/efi_p2_v2_demo.show_document?p_dms_document_id=828545&p_session_id=
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7.B. Incentive for 100% Low-income Ownership of Community Solar Projects (Section 6.6.2.) The$5/RECadderfor100%low-incomeownershipofcommunitysolarprojectsshouldbeextendedtoprojectsthattransferownershiptothelow-incomeresidents,not-for-profitorganizations,and/oraffordablehousingowners.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section6.6.2.Low-IncomeCommunitySolarProjectInitiative.
● [AlternativeWordingProposed]:○ (p148and149)“Forprojectsthatcandemonstratethattheyare100%ownedbylow-
incomesubscribers(includingnot-for-profitorganizations,andaffordablehousingowners),theincentivelevelwillbeincreasedby$5/REC.Projectswhereownershipistransferredtolow-incomesubscribers,not-for-profitorganizations,oraffordablehousingownerswillreceivetheadderstartingat$4/RECandbeingreducedby$1/RECperyearforeachyeartheprojecthasbeeninoperationpriortotheownershiptransfer.Operationisdeemedtobeginatenergization.ThecommitmentforownershiptransfermustbedemonstratedatthetimetheprojectappliesfortheRECcontractandtheadderpaidoutatthetimeoftheownershiptransfer.”
● Discussion,DataorDetailedAnalyses:Financialmodelingshowsthatfor-profitdevelopmentprovidesthebestreturnoninvestmentfortheRECcontracts.However,FEJAdirectstheAgencytoencourageownershipbylow-incomesubscribers,not-for-profitorganizations,andaffordablehousingowners.Consequently,notjustdevelopmentbuttransferofownershiptothelow-incomesubscribers,communityorganizationpartnerand/oraffordablehousingownersshouldbeencouraged.Byprovidingaslidingincentivethatencouragestransferofownership,theAgencywillensurethatthebenefitsofthelow-incomecommunitysolarprojectextendbeyondthe15yearsoftheRECcontract.
7.C. Co-location and Co-location at Brownfields (Section 7.3.1) TheAgencyshouldpreservetheabilitytoco-locateifitencouragescitingpartnershipsforlow-incomeprojects,and/oreconomiesofscaleforlow-incomeprojects.Furthermore,theAgencyshouldallowlimitedconditionalco-locationatbrownfields.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter7,Section7.3.1.Co-locationStandard.
● [AlternativeWordingProposed]:(p127)“Foreachparcelofland(asdefinedbytheCountytheparcelislocatedin),nomorethan2MWofcommunityrenewablegenerationmaybeinstalled.[Uptoanadditional2MWmaybeco-locatedifthesecondprojectislow-incomecommunity
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solar.Additionally,theco-locationrestrictionmaybewaivedforbrownfieldsforupto8MWofprojects,providedthatatleastoneoftheproposedprojectsisaSolarforAllcommunitysolarprojectofatleastonequarterofthetotalaggregatedMWoftheprojectsandthateachno-greater-than2MWproject,exceptfortheSolarforAllproject,beownedbynon-relatedparties.ThewaiverrequestwillbesubmittedpriortoreservingRECcontractpricesthroughtheABPortheSolarforAllprogramsforanyco-locatedprojects.SuchwaiversshouldonlybegrantedwheretheywillfurtherpolicygoalssetforthintheFutureEnergyJobsAct,suchasreturningblightedlandtoproductiveuseorotherwisepromotingthehealth,safetyandwelfareoftheresidentsofIllinois.TheRECcontractonanyco-locatedproject(s)willnotbepaiduntiltheSolarforAllportionoftheprojectisenergized.]”
● Discussion,DataorDetailedAnalyses:○ Projectsthatarebuiltinand/orservelow-incomecommunitiesfaceadditional
economicbarriers,andarepredominantlydevelopedbynon-profitswithlimitedresourceswhomaynotbeabletoacquiresitesaseasilyasfor-profitinstitutions.
○ OneofthegoalsofFEJAisto“helpreturnblightedorcontaminatedlandtoproductiveusewhileenhancingpublichealthandthewell-beingofIllinoisresidents“(20ILCS3855/1-5(8)).Forthemajorityofbrownfieldsitesinthestate,theavailableacreagedoesnotsupportutilityscaleprojects,thedefaultPVprojectthatwillbebidunderthebrownfieldforwardprocurement,especiallyiftheprojectedprojectsizeofthefirstforwardprocurementresultsisanyindicationoffutureutility-scaleprojects.
○ Brownfieldownersoftenfaceongoingremediationefforts,suchascapmaintenance,andareacutelyawareofthelargeliabilitiesassociatedwithenvironmentalimpairment.Theamountoflandthatanon-utilityscalesolarprojectcanoccupy(~10acresforthe2MWacmaximumsizedproject)andtheresultingpaymentforthatland(ontheorderof$800to$1,200/acre/yr)isnotlikelytobeworththepotentialdisruptionstotheremedialsystems,contractingeffort,andongoinginconvenienceofaPVprojectforthebrownfieldowner.Allowingco-locationonbrownfieldswouldincentivizetheutilizationofthesesmallerbutoftenPV-friendlysitesbothfordevelopersandbrownfieldowners.Inexchangeforthebenefitsofco-location,thelandownerand/orthedevelopersinterestedinco-locationwillneedtodevelop,orteamwithanotherdeveloper,toconstructandoperateaSolarforAllcommunitysolarproject.Thisprojectmustbethefirstorsecondprojectenergizedatthesite.Thisprojectcanbeownedbyone(orall)oftheco-locatingdevelopers.Thisencouragessitingpartnershipsforlow-incomeprojects,and/oreconomiesofscaleforlow-incomeprojects.
7.D. Project Expansion (New Section) TheAgencyshouldprovideamechanismforprojectexpansion.Projectexpansionsshouldbeconductedinsuchawaythatavoidsthesituationinwhichasmallprojectwouldreceivemultiplecontractswithhighersmallsystemaddersasthesystemisexpanded.
TheWorkingGroupdeveloped[alternativewording]foranewsection,possiblylocatedafter7.3.1Co-locationofProjects(p128).
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● [AlternativeWordingProposed]:(p128)
“[7.4ProjectExpansion.
Aspreviouslynoted,theGeneralAssemblyexpresslyincludedasizelimitforcommunityrenewablegenerationprojectsof2,000kW.TheGeneralAssemblydidnotrestrictorprohibittheexpansionofanexistingproject,solongasthetotalprojectsizedoesnotexceedthe2,000kWmaximum.ProjectsthatchoosetoexpandwillhavethecurrentofferedAdjustableBlockProgramorSolarforAllRECpriceforthenewportionoftheprojectsetatthetotalsizeoftheprojectaftertheexpansion.Furthermore,theRECpriceforthenewcontractwillbeadjustedtocorrectforanysize-basedadderthattheinitialprojectwaspaidusingthefollowingformula:
RECContractfortheexpansion=(ProjectExpansionSizexCFxRECPriceforthetotalprojectsize)-((numberofRECpaymentsreceivedonoriginalproject/numberofRECpaymentstotalonoriginalcontract)*(InitialProjectSizexCFx(RECPriceattimeofinitialcontract-RECPriceforthetotalprojectsizeatthetimeoftheinitialcontract)))
WhereProjectExpansionSizeisthesizeoftheexpansioninkWacandCFisthecapacityfactor.]”
● Discussion,Data,orDetailedAnalysis:○ ThereisnoprohibitionagainstprojectexpansionintheFEJA.However,thereisno
mechanismintheDraftPlantohandleexpansions.Duetotheexistingco-locationrules,theinitialconstructionofaprojectcouldbeinterpretedtoprecludeanyfurthersolarconstructiononthatparcel.Projectexpansionisespeciallypertinentforlow-incomeprojectslocatedinEnvironmentalJusticeCommunities(“EJCs”).InEJCs,suitablelandforsolardevelopmentmaybechallengingtofind.AllowingexpansioncouldhelpfulfillthegoalofencouragingsolardevelopmentinEJCs.
○ Forexample,a0.5MWaccommunitysolarreceivedan$80/RECprice.Atthattime,a2MWacprojectwasofferedat$65/REC.Atalaterdate,theprojectdecidestoexpanduptothemaximum2MWac.Atthetimeoftheexpansion,the2MWacRECisnowat$60/REC.TheaforementionedformulareducestheRECpaymentforthenewportionoftheprojectbythe$15differencethatexistedbetweenthe2MWand0.5MWRECpriceswhentheoriginalportionoftheplantwasconstructed.
7.E. Low-Income Community Solar Project Initiative (Section 8.6.2.) Itisimperativethattheterm“communitystakeholder”bedefinedsuchthatprojectvendorsarepartneringwithstakeholdersthathavealongstandingcommitmenttocommunityresidentsandaddressingcommunityissuesthatareidentifiedanddefinedbyresidents.
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TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.6.2.Low-IncomeCommunitySolarProject.
● [AlternativeWordingProposed]: 1. (p148)“Forthefirstprovision,allApprovedVendorssubmittingaLow-Income
CommunitySolarProjectwillneedtoincludeintheirapplicationadescriptionofapartnershipwithcommunitystakeholdersinthecommunitywheretheprojectwillbelocated.WhiletheActdoesnotdefinetheterm“communitystakeholders,”primaryguidanceforthistermpursuanttothisActshallbefoundintheNationalCommunity–BasedOrganizationNetwork(“NCBON”)definition.TheNCBONdefinesacommunity-basedorganizationasoneinwhich:
•Themajorityofthegoverningbodyandstaffconsistsoflocalresidents,•Themainoperatingofficesareinthecommunity,•Priorityissueareasareidentifiedanddefinedbyresidents,•Solutionstoaddresspriorityissuesaredevelopedwithresidents,and•Programdesign,implementation,andevaluationcomponentshaveresidentsintimatelyinvolved,inleadershippositions.”
● Discussion,DataorDetailedAnalyses:Thelatterdefinitionofa“Community-BasedOrganization”fromtheNCBONservesasthestrongestguidanceonhowtoidentifywhatbodiesareidentifiedascommunitystakeholders.Thus,theDraftPlanshouldchangetheordertoindicateprimaryguidancefromtheNCBONdefinition.
7.F. Determining Income Eligibility - Community Solar (Section 8.13.2.) TheWorkingGroupagreeswiththeAgency'sproposalforageographic-basedeligibilityatthecensustractlevelforcommunitysolarsubscribers.However,thereareafewlimitationstoHUDQualifiedCensusTractstonote.TheWorkingGroupdeveloped[alternativewording]forthefollowingsection:Chapter8,Section8.13.2.DeterminingIncomeEligibility.
● [AlternativeWordingProposed]:(p161)ItwillbetheresponsibilityoftheApprovedVendortotracksubscribersanddocumentincomeeligibilityforcommunitysolarprojects.ApprovedVendorswillberequiredtoreporttotheAgencyonsubscriptionratesonceayear.[Ifafteroneyear,subscriptionratesarenotatfullcapacity,theAgencywillconsiderbroadeningtheincomeverificationapproachtoincludethosecensustractswhereatleast50%ofthehouseholdsmake<80%AMI.]
● Discussion,DataandAnalysis:
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○ HUDQCTSarecurrentlycalculatedusingdatafrom2010.InternalElevateresearchfromtheAmericanCommunitySurveyshowsthatfrom2010-2014,10%ofILcensustractsexperiencedamedianhouseholdincomedecreaseofmorethan$10,000.Therecentvolatilityofhouseholdincomemakesastrongargumentforusingthemostcurrentpossibledata.
○ AstheAgencynoted,QualifiedCensusTractsmusthave50percentofhouseholdswithincomesbelow60percentoftheAreaMedianGrossIncome(AMGI)orhaveapovertyrateof25percentormore.Therefore,theQCTdefinitionisstricterthantheoriginalstatuteproposed.Ifduetothismorelimitedscope,thecommunitysolaradministratorhasdifficultyfillingthesubscriberquotainthefirstyear,ElevaterecommendsthattheyrevisitusingQCTs
○ Analternativemethodologywouldbewhereallhouseholdsincensustractsqualifywhereattheleast50percentofthehouseholdsmakebelow80%AMI.Ineffect,HUDincomelimitsandACSincomebracketsdata,atthecensustractlevel,shouldbeusedtodeterminethenumberofhouseholdsineachtractthatfallbelowthe80%AMIthresholdforthatarea,adjustedforhouseholdsize.Thisnumbershouldbedividedbythetotalnumberofhouseholdsinthetracttogiveapercentageofhouseholdsbelow80%AMI.Censustractsshouldthenbedesignatedasqualifyingornotqualifyingatagivendensitythresholdof80%AMI.Fortherecommended50%densityeligibilitystandard,anytractwithmorethan50%ofhouseholdsatorbelow80%AMIwouldbeconsideredqualifying.Effectively,anycensustractwithamedianhouseholdincomebelow80%AMIforthatrentalmarketwouldqualifyandallhousingunitswouldbeconsideredaffordable.Intheattachedmap,youwillseethatusingthismethodwouldincreasethenumberofeligiblehouseholdsbymorethan800,000.Italsohighlightsthemunicipalitiesthatwouldbeimpactedthemost.
○ Forcommunitysolarprojects,theAgencyrecognizesthattransactioncostsofprovingincomeeligibilitycomparedtothevalueoftheincentivemaybehigherthanforaninstallationofaprojecton-site,andthereforeproposesastreamlinedincomeverificationapproach.■ Asubscribercanbeverifiedaslow-incomeviathesameprovisionsusedforthe
Low-IncomeDistributedGenerationIncentive. ■ Asubscribercanbeverifiedaslow-incomeiftheyresideinaHUDQualified
CensusTractandprovideasignedaffidavitthattheymeettheincomequalificationlevel.
8. Adjustable Block Program Requirements TheSolarforAllProgramwillbesimilartotheAdjustableBlockProgram;administrativeburdenshouldbeminimizedoreliminatedforlessresourcedorganizationsthatwanttoparticipateinSolarforAll.
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8.A. Minimize Administrative Burden for Non-profits (Sections 6.10., 6.14.3., 6.16., and 8.12.) TheAgencydeclaredtheSolarforAllProgramwillbesimilartotheAdjustableBlockProgram;intheProgramManualforbothprograms,feesfornon-profitsshouldbewaivedorsignificantlyreducedandadministrativeburdenshouldbeminimizedoreliminatedforlessresourcedorganizationsthatwanttoparticipateinSolarforAll.Importantly,theSolarforAllProgramwillhavesmallerandless-resourcedorganizationsdevelopingonlyoneortwoprojects,andwhothereforedon’thavetheluxuryorabilitytomanageRECobligationsattheportfoliolevelorbatchsizessuggested.TheWorkingGroupdeveloped[alternativewording]forthefollowingsections:Chapter6,Section6.10ProgramAdministrator;Chapter6,Section6.14.3BatchSize;Chapter6,Section6.16.OngoingPerformanceRequirements;andChapter8,Section8.12.ApplicationProcess.
● [AlternativeWordingProposed]: o Chapter6,Section6.10.ProgramAdministrator
▪ (p109)“TheProgramAdministratorwillbeauthorizedtocharge[andwaive]feestoApprovedVendorsasdescribedinSection6.14.4forprocessingapplications,subjecttoreviewbytheAgency.”
o Chapter6,Section6.14.3.BatchSize ▪ (p115)“Toprovideemploymentopportunitiesforminority-ownedandfemale-
ownedbusinessenterprisesasspecifiedinSection1-75(c)(7)oftheAct,aminority-ownedorfemale-ownedbusinessmayrequesttosubmitaninitialbatchofonly50kW,withanysubsequentbatchessubjecttothestandard100kW(ormore)requirement.[Inordertoeaseburdensonentitiesservinglow-incomeandenvironmentaljusticecommunitiesthroughtheIllinoisSolarforallProgramthisrelaxationonbatchsizerequirementsalsoappliestonon-profitsandanybatchwith100%IllinoisSolarforAllprojects.]”
o Chapter6,Section6.16.OngoingPerformanceRequirements ▪ (p119)“RECdeliveryobligationswillbemanagedataportfoliolevel.[Inorder
toeaseburdensonentitiesservinglow-incomeandenvironmentaljusticecommunitiesthroughtheIllinoisSolarforallProgram,arelaxationonportfoliorequirementsalsoappliestonon-profitsandanybatchwith100%IllinoisSolarforAllprojects.]Asprojectsgetcompletedandenergized,eachApprovedVendorwillthereforehaveaportfolioofsystemswithRECdeliveryobligationsfromthevariouscontractsthatithaswitheachutility.TheobligationtoensureRECdeliverywillbeatthecontractlevelratherthantheindividualprojectlevel.Inthisway,thenaturalvariationthatsomesystemswillproducemoreRECsthanforecastandothersfewerRECswillreducetheriskofcontractdefault,comparedtoproject-levelcontracts,andallowforsomeeaseincontractadministration.”
o Chapter8,8.12.ApplicationProcess▪ (p157)“ProjectswillbesubmittedbyIllinoisSolarforAllApprovedVendors
throughthesamebatchprocessastheAdjustableBlockProgram[andsubjecttothewaiversandrelaxationstoeaseburdensonentitiesservinglow-income
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andenvironmentaljusticecommunities.”
8.B. Collateral (Section 6.16.1.) ApprovedVendorswillpostcollateralequalto10%ofthetotalcontractvaluewhenabatchisapprovedandthesamerequirementappliesunderSolarforAll(p157).ThisrequirementshouldbesignificantlyreducedforSolarforAllprojects,especiallyfornon-profitsandcommunitybasedorganizationsinterestedinsmallerdistributedgenerationprojectsthatmaximizebenefitsforlow-incomeparticipants.TheWorkingGroupdeveloped[alternativewording]forthefollowingsections:Chapter6,Section6.16.1.CreditRequirements.
● [AlternativeWordingProposed]:a. (p120)“AnApprovedVendorisrequiredtopostcollateralequivalentto10%ofthe
totalcontractvaluewheneachBatch’scontractisapproved.[IftheApprovedVendorisanon-profitthisrequirementiseliminatedorreducedto1%ofthetotalcontractvalue.]”
Thankyoufortheopportunitytoprovidecomments.
RespectfullySubmitted,
TheIllinoisSolarforAllWorkingGroup