HB2855ham001 101ST GENERAL ASSEMBLY

Rep. Robyn Gabel

Filed: 4/1/2019

10100HB2855ham001 LRB101 07594 RJF 58668 a

AMENDMENT TO HOUSE BILL 2855

AMENDMENT NO. ______. Amend House Bill 2855 by replacing everything after the enacting clause with the following:

"Section 5. The Public Utilities Act is amended by adding Section 16-107.8 as follows:

(220 ILCS 5/16-107.8 new)

Sec. 16-107.8. Beneficial electrification.

(a) The purpose of this Section is to decrease reliance on fossil fuels, reduce pollution from the transportation sector, increase access to electrification for all customers, and ensure that electric vehicle adoption and increased electricity usage demand do not place significant additional burdens on the electric system.

(b) For the purposes of this Section:

"Beneficial electrification programs" means programs that replace fossil fuel use and improve electric grid operation. Beneficial electrification programs should provide for incentives such that customers are induced to use electricity at times of low overall system usage or at times when generation from renewable energy sources is high. "Beneficial electrification programs" includes one of the following:

(1) time-of-use electric rates;

(2) hourly pricing electric rates;

(3) charging rates set by electric vehicle service providers that encourage off-peak charging;

(4) optimized charging programs;

(5) electric vehicle-to-grid;

(6) demand response;

(7) renewable energy generation located in close proximity to the intended energy user; and

(8) other such programs as defined by the Commission.

"Optimized charging programs" means programs whereby owners of electric vehicles can set their vehicles to be charged based on the electric system's current demand, retail or wholesale market rates, incentives, the carbon or other pollution intensity of the electric generation mix, the provision of grid services, efficient use of the electric grid, or the availability of clean energy generation. Optimized charging programs can be operated by utilities as well as third parties.

(c) Within 120 days after the effective date of this amendatory Act of the 101st General Assembly, the Illinois Commerce Commission shall initiate a stakeholder workshop process, followed by a contested proceeding, to develop a cost-benefit test for beneficial electrification policies. The stakeholder workshop process shall take into consideration the bill reduction benefits of electric vehicle adoption, including: (1) the benefit of lower bills for customers who do not charge electric vehicles; (2) benefits from electric vehicle usage of the distribution system; (3) the avoidance and reduction in capacity costs from optimized charging and off-peak charging; (4) energy price and cost reductions; (5) environmental benefits; and (6) other public interest criteria developed by the General Assembly or the Commission.

The cost-benefit test shall determine cost-benefit valuations that are representative of a variety of ranges of electric vehicle adoption scenarios. Upon the conclusion of the stakeholder process, the Commission shall issue an order establishing an initial Beneficial Electrification Cost-Benefit Test within 270 days after initiation of the stakeholder workshop process. The Commission shall update its Beneficial Electrification Cost-Benefit Test from time to time as needed or on petition by any party, taking into consideration updated benefits, costs, and structural changes based on technological or market advancements, to be used as part of subsequent updates to each utility's beneficial electrification plan for its proposed new investments. The process shall be open and transparent with inclusion of stakeholder interests, including stakeholders representing environmental justice interests.

(d) In order to address barriers to public charging, no later than December 31, 2020, the Illinois Commerce Commission shall open an investigation to explore alternative rate structures, additional or alternative rate classes, and cost of service studies that would help support and encourage the development of public charging stations. If, after notice and hearing, the Commission determines that alternative rate structures, additional or alternative rate classes, and new cost of service studies would encourage development of public charging stations, the Commission shall initiate a proceeding and issue an order directing each electric utility to implement such elements.

(e) No later than December 31, 2019, each electric utility that serves over 100,000 customers in this State shall initiate a stakeholder process to begin development of a 6-year draft beneficial electrification plan that helps achieve the purposes of this Section and achieves a public benefit per the guidelines of the Commission's Beneficial Electrification Cost-Benefit Test. Each electric utility shall, in preparing its draft plan, consult stakeholder groups, including stakeholders representing environmental justice interests. Within 120 days after a final order establishing an initial Beneficial Electrification Cost-Benefit Test, each electric utility shall submit its draft beneficial electrification plan to the Illinois Commerce Commission for approval. The Commission shall initiate a proceeding to review each electric utility's draft plan, evaluate the plan against its Beneficial Electrification Cost-Benefit Test, and other criteria as described in this Section, and shall issue an order within 270 days after initiation of the proceeding to review each draft plan approving the plan or approving the plan with modifications.

Each draft plan developed under this subsection (e) shall specifically address the following:

(1) the development and implementation of its time-of-use rate, and its benefit for electric vehicles and for all customers;

(2) the development of optimized charging programs to achieve savings identified in the Beneficial Electrification Cost-Benefit Test established by the Commission, and new contracts and compensation for services in those programs, through signals that allow electric vehicle charging to respond to local system conditions, manage critical peak periods, serve as a demand response or clean peak program resource, and maximize renewable energy utilization and integration into the grid;

(3) an engineering analysis and stakeholder process to determine the project impacts of electrification on electric circuit loads, demand, and other system needs, using as inputs projected locations on the electric grid of planned and anticipated electric vehicle adoption, charging technology, charging behavior, and other impacts from the adoption of advanced energy technology, including, but not limited to, renewable energy technologies, energy storage, energy efficiency, and demand response;

(4) plans to address environmental justice interests and the provision of opportunities for residents and businesses in environmental justice communities to directly benefit from transportation electrification;

(5) plans to increase access to Level 3 Public Electric Vehicle Charging Infrastructure located along transportation corridors to serve vehicles that need quicker charging times and vehicles of persons who have no other access to charging infrastructure, regardless of whether those projects participate in optimized charging programs;

(6) coordination and cohesion with electric vehicle and electric vehicle charging equipment incentives established by any agency, department, board, or commission of the State of Illinois;

(7) the development of online tools, applications, and data sharing that provide essential information to those charging electric vehicles, and enable the automated charging response to price signals, emission signals, real-time renewable generation production, and other Commission-approved or customer-desired indicators of beneficial charging times;

(8) customer education measures, including a shadow billing option to allow customers to compare current and historical monthly bills under different rate plans, cost calculators to compare electric vehicles costs with internal combustion engine vehicle costs, the use of utility communications for proactive customer engagement on electric vehicles, rate and cost comparison information materials for car dealers and their customers, and direct outreach to diverse communities through community and other organizations; and

(9) performance targets, metrics, and remedies for not achieving results as outlined in the Beneficial Electrification Cost-Benefit Test.

(f) Each electric utility with an approved beneficial electrification plan shall submit an updated beneficial electrification plan to the Commission within 2 years after its plan approval that includes all elements of subsection (e), any additional components as directed by the Illinois Commerce Commission in its order approving its initial beneficial electrification plan, a report on the performance metrics it has achieved, a description of areas for improvement, a revised implementation plan, and an analysis of how its revised implementation achieves any update to the Commission's Beneficial Electrification Cost-Benefit Test approved prior to the filing of its updated plan.

(g) Each electric utility shall be allowed to seek a waiver of its Integrated Distribution Company Implementation Plan rules to implement the goals of this Section.

Section 99. Effective date. This Act takes effect upon becoming law.".