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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Public Utilities Act is amended by changing | ||||||
5 | Section 19-140 as follows: | ||||||
6 | (220 ILCS 5/19-140)
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7 | Sec. 19-140. On-bill financing program; gas utilities. | ||||||
8 | (a) The Illinois General Assembly finds that Illinois homes | ||||||
9 | and businesses have the potential to save energy through | ||||||
10 | conservation and cost-effective energy efficiency measures. | ||||||
11 | Programs created pursuant to this Section will allow utility | ||||||
12 | customers to purchase cost-effective energy efficiency | ||||||
13 | measures , including measures set forth in a | ||||||
14 | Commission-approved energy efficiency and demand-response plan | ||||||
15 | under Section 8-104 of this Act and that are cost-effective as | ||||||
16 | that term is defined by that Section, with no required initial | ||||||
17 | upfront payment, and to pay the cost of those products and | ||||||
18 | services over time on their utility bill. | ||||||
19 | (b) Notwithstanding any other provision of this Act, a gas | ||||||
20 | utility serving more than 100,000 customers on January 1, 2009 | ||||||
21 | shall offer a Commission-approved on-bill financing program | ||||||
22 | ("program") that allows its retail customers who own a | ||||||
23 | residential single family home, duplex, or other residential |
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1 | building with 4 or less units, or condominium at which the gas | ||||||
2 | service is being provided (i) to borrow funds from a third | ||||||
3 | party lender in order to purchase gas energy efficiency | ||||||
4 | measures approved under the program for installation in such | ||||||
5 | home or condominium without any required upfront payment and | ||||||
6 | (ii) to pay back such funds over time through the gas utility's | ||||||
7 | bill. Based upon the process described in subsection (b-5) of | ||||||
8 | this Section, small commercial retail customers, as that term | ||||||
9 | is defined in Section 19-105 of this Act, who own the premises | ||||||
10 | at which gas service is being provided may be included in such | ||||||
11 | program. After receiving a request from a gas utility for | ||||||
12 | approval of a proposed program and tariffs pursuant to this | ||||||
13 | Section, the Commission shall render its decision within 120 | ||||||
14 | days. If no decision is rendered within 120 days, then the | ||||||
15 | request shall be deemed to be approved. | ||||||
16 | (b-5) Within 30 days after the effective date of this | ||||||
17 | amendatory Act of the 96th General Assembly, the Commission | ||||||
18 | shall convene a workshop process during which interested | ||||||
19 | participants may discuss issues related to the program, | ||||||
20 | including program design, eligible gas energy efficiency | ||||||
21 | measures, vendor qualifications, and a methodology for | ||||||
22 | ensuring ongoing compliance with such qualifications, | ||||||
23 | financing, sample documents such as request for proposals, | ||||||
24 | contracts and agreements, dispute resolution, pre-installment | ||||||
25 | and post-installment verification, and evaluation. The | ||||||
26 | workshop process shall be completed within 150 days after the |
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1 | effective date of this amendatory Act of the 96th General | ||||||
2 | Assembly. | ||||||
3 | (c) Not later than 60 days following completion of the | ||||||
4 | workshop process described in subsection (b-5) of this Section, | ||||||
5 | each gas utility subject to subsection (b) of this Section | ||||||
6 | shall submit a proposed program to the Commission that contains | ||||||
7 | the following components: | ||||||
8 | (1) A list of recommended gas energy efficiency | ||||||
9 | measures that will be eligible for on-bill financing. An | ||||||
10 | eligible gas energy efficiency measure ("measure") shall | ||||||
11 | be defined by the following: | ||||||
12 | (A) The measure would be applied to or replace gas | ||||||
13 | energy-using equipment; and | ||||||
14 | (B) Either (i) application Application of the | ||||||
15 | measure to equipment and systems will have estimated | ||||||
16 | gas savings (determined by rates in effect at the time | ||||||
17 | of purchase), that are sufficient to cover the costs of | ||||||
18 | implementing the measures, including finance charges | ||||||
19 | and any program fees not recovered pursuant to | ||||||
20 | subsection (f) of this Section. To assist the gas | ||||||
21 | utility in identifying or approving measures, the | ||||||
22 | utility may consult with the Department of Commerce and | ||||||
23 | Economic Opportunity, as well as with retailers, | ||||||
24 | technicians and installers of gas energy efficiency | ||||||
25 | measures and energy auditors (collectively "vendors") ; | ||||||
26 | or (ii) the measure is included in a |
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1 | Commission-approved energy efficiency and | ||||||
2 | demand-response plan under Section 8-104 of this Act | ||||||
3 | and is cost-effective as that term is defined by that | ||||||
4 | Section . | ||||||
5 | (2) The gas utility shall issue a request for proposals | ||||||
6 | ("RFP") to lenders for purposes of providing financing to | ||||||
7 | participants to pay for approved measures. The RFP criteria | ||||||
8 | shall include, but not be limited to, the interest rate, | ||||||
9 | origination fees, and credit terms. The utility shall | ||||||
10 | select the winning bidders based on its evaluation of these | ||||||
11 | criteria, with a preference for those bids containing the | ||||||
12 | rates, fees, and terms most favorable to participants. | ||||||
13 | (3) The utility shall work with the lenders selected | ||||||
14 | pursuant to the RFP process, and with vendors, to establish | ||||||
15 | the terms and processes pursuant to which a participant can | ||||||
16 | purchase eligible gas energy efficiency measures using the | ||||||
17 | financing obtained from the lender. The vendor shall | ||||||
18 | explain and offer the approved financing packaging to those | ||||||
19 | customers identified in subsection (b) of this Section and | ||||||
20 | shall assist customers in applying for financing. As part | ||||||
21 | of such process, vendors shall also provide to participants | ||||||
22 | information about any other incentives that may be | ||||||
23 | available for the measures. | ||||||
24 | (4) The lender shall conduct credit checks or undertake | ||||||
25 | other appropriate measures to limit credit risk, and shall | ||||||
26 | review and approve or deny financing applications |
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1 | submitted by customers identified in subsection (b) of this | ||||||
2 | Section. Following the lender's approval of financing and | ||||||
3 | the participant's purchase of the measure or measures, the | ||||||
4 | lender shall forward payment information to the gas | ||||||
5 | utility, and the utility shall add as a separate line item | ||||||
6 | on the participant's utility bill a charge showing the | ||||||
7 | amount due under the program each month. | ||||||
8 | (5) A loan issued to a participant pursuant to the | ||||||
9 | program shall be the sole responsibility of the | ||||||
10 | participant, and any dispute that may arise concerning the | ||||||
11 | loan's terms, conditions, or charges shall be resolved | ||||||
12 | between the participant and lender. Upon transfer of the | ||||||
13 | property title for the premises at which the participant | ||||||
14 | receives gas service from the utility or the participant's | ||||||
15 | request to terminate service at such premises, the | ||||||
16 | participant shall pay in full its gas utility bill, | ||||||
17 | including all amounts due under the program, provided that | ||||||
18 | this obligation may be modified as provided in subsection | ||||||
19 | (g) of this Section. Amounts due under the program shall be | ||||||
20 | deemed amounts owed for residential and, as appropriate, | ||||||
21 | small commercial gas service. | ||||||
22 | (6) The gas utility shall remit payment in full to the | ||||||
23 | lender each month on behalf of the participant. In the | ||||||
24 | event a participant defaults on payment of its gas utility | ||||||
25 | bill, the gas utility shall continue to remit all payments | ||||||
26 | due under the program to the lender, and the utility shall |
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1 | be entitled to recover all costs related to a participant's | ||||||
2 | nonpayment through the automatic adjustment clause tariff | ||||||
3 | established pursuant to Section 19-145 of this Act. In | ||||||
4 | addition, the gas utility shall retain a security interest | ||||||
5 | in the measure or measures purchased under the program, and | ||||||
6 | the utility retains its right to disconnect a participant | ||||||
7 | that defaults on the payment of its utility bill. | ||||||
8 | (7) The total outstanding amount financed under the | ||||||
9 | program shall not exceed $2.5 million for a gas utility or | ||||||
10 | gas utilities under a single holding company, provided that | ||||||
11 | the gas utility or gas utilities may petition the | ||||||
12 | Commission for an increase in such amount. | ||||||
13 | (d) A program approved by the Commission shall also include | ||||||
14 | the following criteria and guidelines for such program: | ||||||
15 | (1) guidelines for financing of measures installed | ||||||
16 | under a program, including, but not limited to, RFP | ||||||
17 | criteria and limits on both individual loan amounts and the | ||||||
18 | duration of the loans; | ||||||
19 | (2) criteria and standards for identifying and | ||||||
20 | approving measures; | ||||||
21 | (3) qualifications of vendors that will market or | ||||||
22 | install measures, as well as a methodology for ensuring | ||||||
23 | ongoing compliance with such qualifications; | ||||||
24 | (4) sample contracts and agreements necessary to | ||||||
25 | implement the measures and program; and | ||||||
26 | (5) the types of data and information that utilities |
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1 | and vendors participating in the program shall collect for | ||||||
2 | purposes of preparing the reports required under | ||||||
3 | subsection (g) of this Section. | ||||||
4 | (e) The proposed program submitted by each gas utility | ||||||
5 | shall be consistent with the provisions of this Section that | ||||||
6 | define operational, financial, and billing arrangements | ||||||
7 | between and among program participants, vendors, lenders, and | ||||||
8 | the gas utility. | ||||||
9 | (f) A gas utility shall recover all of the prudently | ||||||
10 | incurred costs of offering a program approved by the Commission | ||||||
11 | pursuant to this Section, including, but not limited to, all | ||||||
12 | start-up and administrative costs and the costs for program | ||||||
13 | evaluation. All prudently incurred costs under this Section | ||||||
14 | shall be recovered from the residential and small commercial | ||||||
15 | retail customer classes eligible to participate in the program | ||||||
16 | through the automatic adjustment clause tariff established | ||||||
17 | pursuant to Section 8-104 of this Act. | ||||||
18 | (g) An independent evaluation of a program shall be | ||||||
19 | conducted after 3 years of the program's operation. The gas | ||||||
20 | utility shall retain an independent evaluator who shall | ||||||
21 | evaluate the effects of the measures installed under the | ||||||
22 | program and the overall operation of the program, including, | ||||||
23 | but not limited to, customer eligibility criteria and whether | ||||||
24 | the payment obligation for permanent gas energy efficiency | ||||||
25 | measures that will continue to provide benefits of energy | ||||||
26 | savings should attach to the meter location. As part of the |
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1 | evaluation process, the evaluator shall also solicit feedback | ||||||
2 | from participants and interested stakeholders. The evaluator | ||||||
3 | shall issue a report to the Commission on its findings no later | ||||||
4 | than 4 years after the date on which the program commenced, and | ||||||
5 | the Commission shall issue a report to the Governor and General | ||||||
6 | Assembly including a summary of the information described in | ||||||
7 | this Section as well as its recommendations as to whether the | ||||||
8 | program should be discontinued, continued with modification or | ||||||
9 | modifications or continued without modification, provided that | ||||||
10 | any recommended modifications shall only apply prospectively | ||||||
11 | and to measures not yet installed or financed. | ||||||
12 | (h) A gas utility offering a Commission-approved program | ||||||
13 | pursuant to this Section shall not be required to comply with | ||||||
14 | any other statute, order, rule, or regulation of this State | ||||||
15 | that may relate to the offering of such program, provided that | ||||||
16 | nothing in this Section is intended to limit the gas utility's | ||||||
17 | obligation to comply with this Act and the Commission's orders, | ||||||
18 | rules, and regulations, including Part 280 of Title 83 of the | ||||||
19 | Illinois Administrative Code. | ||||||
20 | (i) The source of a utility customer's gas supply shall not | ||||||
21 | disqualify a customer from participation in the utility's | ||||||
22 | on-bill financing program. Customers of alternative gas | ||||||
23 | suppliers may participate in the program under the same terms | ||||||
24 | and conditions applicable to the utility's supply customers.
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25 | (Source: P.A. 96-33, eff. 7-10-09.)
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