Announcements


Indexed REC-8: What are the consequences under the Indexed REC Contract for failure to meet the percentage requirement of the Minimum Equity Standard?

A Minimum Equity Standard of 10% will apply under the Indexed REC Contract to a Project selected through this RFP if the Date of First Operation (or the Hydropower Refurbishment Completion Date if the Project is a hydropower project that is newly Modernized or Retooled) is on or after December 15, 2022.

The remedies related to a failure to meet the percentage requirement of the Minimum Equity Standard (i.e., 10%) is described in Section 10.1.5.4 of the IPA’s 2024 long-term renewable resources procurement plan (the “Long-Term Plan”) as approved by the Illinois Commerce Commission in ICC Docket No. 22-0714, which is pasted below for your convenience. Further, please also note that Section 1-75(c-30) of the IPA Act provides the following: “……If the Agency concludes the entity has not met or maintained its minimum equity standards required under the applicable subparagraphs under subsection (c-10), the Agency shall deny the entity’s ability to participate in procurement programs in subsection (c), including by withholding approved vendor or designee status.”

As set forth in Section 6.4(d) of the Indexed REC Contract, “no other remedies are contemplated under the Indexed REC Contract for Seller’s failure to comply with the Minimum Equity Standard requirements”. As such, failure to meet the percentage requirement of the Minimum Equity Standard is not an event of default leading to contract termination or forfeiture of the performance assurance under the Indexed REC Contract.

As noted above, and for your convenience, Section 10.1.5.4 of the 2024 Long-Term Plan provides that:

“If the Agency determines that an Approved Vendor, Designee, or Competitive Procurement Supplier has failed to comply with any of the requirements set forth by the Agency, or any contract, the entity will be notified and may face disciplinary action. The Agency will impose consequences for violations by program participants, including but not limited to:

  1. Notice of Potential Violation
  2. Suspension of the entity’s ability to submit project applications to IPA programs or to participate in competitive procurements during the remainder of the delivery year.
  3. Repeated violations could potentially result in the Approved Vendor or Designee becoming suspended from the IPA’s programs for an entire delivery year or more. Competitive Procurement Suppliers could likewise be barred from participation in future competitive procurement events.
  4. Provision of Mid-year Progress information

If the entity does not submit a Compliance Plan or if the Compliance Plan fails to meet the required Minimum Equity Standards after the chance to resubmit, it will receive a Notice of Potential Violation (NOPV). If the entity doesn’t submit an edited Compliance Plan or the revised Compliance Plan still does not pass after receiving an NOPV, it will be issued an official warning letter from the Agency. If the entity does not submit an edited Compliance Plan or the revised Compliance Plan still does not pass after receiving a warning letter, it will be issued suspension letter. Suspensions of an Approved Vendor or Designee in the Adjustable Block Program will be noted on the program website’s lists of Approved Vendors and Designees as well listed on the disciplinary actions report and in the Energy Workforce Equity Database”

Please see Section 6.4 of the Indexed REC Contract as well as the FAQs page for additional information on the MES including requirements, compliance plans, and waiver requests.