Announcements


Indexed REC-51: For purposes of satisfying the Project Labor Agreement requirements in the IPA Act and Section 6.3 of the Indexed REC Contract, is there a requirement that all labor involved on the project be union?

Please refer to the Project Labor Agreement Act (30 ILCS 571/25) (“PLA Act”) and the Indexed REC Contract for the requirements. It is the responsibility of Seller to understand and comply with the PLA Act requirements of the Indexed REC Contract, even where a contractor or subcontractor will be the party ultimately performing the complying action. The Project Labor Agreement must meet the requirements of the PLA Act, which include, but is not limited to, Section 25(e) of the PLA Act, which states: “…any project labor agreement shall: … … (e) Permit the selection of the lowest qualified responsible bidder, without regard to union or non-union status at other construction sites.”.

As required by Section 1-75(c)(1)(Q)(2) of the IPA Act, the Project must be built by General Contractors that have entered into a Project Labor Agreement prior to construction. That Project Labor Agreement shall be filed with the Director of the IPA, who shall determine whether the Project Labor Agreement meets the requirements of the IPA Act and the Project Labor Agreements Act. Those requirements are outlined below. Any determination made by the IPA will be provided after such executed Project Labor Agreement is submitted per the timeline set forth in Section 6.3 of the Indexed REC contract.

As noted in Section 5.4.3 of the IPA’s 2024 Long-Term Renewable Resources Procurement Plan, “as a project labor agreement is a private agreement between a project developer and a labor organization entered into with both parties’ acquiescence, and as the IPA Act does not direct the Agency to develop qualitative project labor agreement standards, the Agency does not believe that it can or should generally develop minimum project labor agreement terms for that agreement to satisfy Section 1-75(c)(1)(Q)(2)’s requirements. However, a labor organization and the general contractor building the project shall have the authority to include other terms and conditions as they deem necessary.”

Under Section 1-75(c)(1)(Q)(2) of the IPA Act, the project labor agreement must provide “the names, addresses, and occupations of the owner of the [Project] and the individuals representing the labor organization employees participating in the project labor agreement consistent with the Project Labor Agreements Act.” Section 1-10 of the IPA Act outlines specific additional elements required in a Project Labor Agreement under the Act, including:

  • “provisions establishing the minimum hourly wage for each class of labor organization employee;
  • provisions establishing the benefits and other compensation for each class of labor organization employee;
  • provisions establishing that no strike or disputes will be engaged in by the labor organization employees;
  • provisions establishing that no lockout or disputes will be engaged in by the general contractor building the project; and
  • provisions for minorities and women, as defined under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act, setting forth goals for apprenticeship hours to be performed by minorities and women and setting forth goals for total hours to be performed by underrepresented minorities and women.”

Additionally, as proposed by the IPA in Docket No. 22-0231 and affirmed by the Commission in approving the Agency’s 2022 Plan, “project labor agreement submittals must also include a description of the actual efforts the entity will take or has taken to “goals for apprenticeship hours to be performed by minorities and women and [ ] goals for total hours to be performed by underrepresented minorities and women.” Setting goals is an important step toward progress, but without the ability to review whether robust efforts are being made to recruit more minorities and women into apprenticeships or training programs, the Agency has no insight into industry trends, challenges in meeting those goals, or other important signals related to the Agency’s expanded role in monitoring and improving equity in the clean energy sector.” Thus, simply including goals for hours worked by minorities and women is not sufficient; those goals must also be supported by planned efforts to meet such goals.

Please review Section 1.90 and Section 6.3 of the Indexed REC Contract for more information about the reporting requirements related to the Project Labor Agreement.