Sen. Daniel Biss

Filed: 3/24/2016

 

 


 

 


 
09900SB2803sam001LRB099 20649 EGJ 45891 a

1
AMENDMENT TO SENATE BILL 2803

2    AMENDMENT NO. ______. Amend Senate Bill 2803 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Public Utilities Act is amended by changing
5Sections 8-103 and 8-104 as follows:
 
6    (220 ILCS 5/8-103)
7    Sec. 8-103. Energy efficiency and demand-response
8measures.
9    (a) It is the policy of the State that electric utilities
10are required to use cost-effective energy efficiency and
11demand-response measures to reduce delivery load. Requiring
12investment in cost-effective energy efficiency and
13demand-response measures will reduce direct and indirect costs
14to consumers by decreasing environmental impacts and by
15avoiding or delaying the need for new generation, transmission,
16and distribution infrastructure. It serves the public interest

 

 

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1to allow electric utilities to recover costs for reasonably and
2prudently incurred expenses for energy efficiency and
3demand-response measures. As used in this Section,
4"cost-effective" means that the measures satisfy the total
5resource cost test. The low-income measures described in
6subsection (f)(4) of this Section shall not be required to meet
7the total resource cost test. For purposes of this Section, the
8terms "energy-efficiency", "demand-response", "electric
9utility", and "total resource cost test" shall have the
10meanings set forth in the Illinois Power Agency Act. For
11purposes of this Section, the amount per kilowatthour means the
12total amount paid for electric service expressed on a per
13kilowatthour basis. For purposes of this Section, the total
14amount paid for electric service includes without limitation
15estimated amounts paid for supply, transmission, distribution,
16surcharges, and add-on-taxes.
17    (b) Electric utilities shall implement cost-effective
18energy efficiency measures to meet the following incremental
19annual energy savings goals:
20        (1) 0.2% of energy delivered in the year commencing
21    June 1, 2008;
22        (2) 0.4% of energy delivered in the year commencing
23    June 1, 2009;
24        (3) 0.6% of energy delivered in the year commencing
25    June 1, 2010;
26        (4) 0.8% of energy delivered in the year commencing

 

 

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1    June 1, 2011;
2        (5) 1% of energy delivered in the year commencing June
3    1, 2012;
4        (6) 1.4% of energy delivered in the year commencing
5    June 1, 2013;
6        (7) 1.8% of energy delivered in the year commencing
7    June 1, 2014; and
8        (8) 2% of energy delivered in the year commencing June
9    1, 2015 and each year thereafter.
10    Electric utilities may comply with this subsection (b) by
11meeting the annual incremental savings goal in the applicable
12year or by showing that the total cumulative annual savings
13within a 3-year planning period associated with measures
14implemented after May 31, 2014 was equal to the sum of each
15annual incremental savings requirement from May 31, 2014
16through the end of the applicable year.
17    (c) Electric utilities shall implement cost-effective
18demand-response measures to reduce peak demand by 0.1% over the
19prior year for eligible retail customers, as defined in Section
2016-111.5 of this Act, and for customers that elect hourly
21service from the utility pursuant to Section 16-107 of this
22Act, provided those customers have not been declared
23competitive. This requirement commences June 1, 2008 and
24continues for 10 years.
25    (d) Notwithstanding the requirements of subsections (b)
26and (c) of this Section, an electric utility shall reduce the

 

 

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1amount of energy efficiency and demand-response measures
2implemented over a 3-year planning period by an amount
3necessary to limit the estimated average annual increase in the
4amounts paid by retail customers in connection with electric
5service due to the cost of those measures to:
6        (1) in 2008, no more than 0.5% of the amount paid per
7    kilowatthour by those customers during the year ending May
8    31, 2007;
9        (2) in 2009, the greater of an additional 0.5% of the
10    amount paid per kilowatthour by those customers during the
11    year ending May 31, 2008 or 1% of the amount paid per
12    kilowatthour by those customers during the year ending May
13    31, 2007;
14        (3) in 2010, the greater of an additional 0.5% of the
15    amount paid per kilowatthour by those customers during the
16    year ending May 31, 2009 or 1.5% of the amount paid per
17    kilowatthour by those customers during the year ending May
18    31, 2007;
19        (4) in 2011, the greater of an additional 0.5% of the
20    amount paid per kilowatthour by those customers during the
21    year ending May 31, 2010 or 2% of the amount paid per
22    kilowatthour by those customers during the year ending May
23    31, 2007; and
24        (5) thereafter, the amount of energy efficiency and
25    demand-response measures implemented for any single year
26    shall be reduced by an amount necessary to limit the

 

 

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1    estimated average net increase due to the cost of these
2    measures included in the amounts paid by eligible retail
3    customers in connection with electric service to no more
4    than the greater of 2.015% of the amount paid per
5    kilowatthour by those customers during the year ending May
6    31, 2007 or the incremental amount per kilowatthour paid
7    for these measures in 2011.
8    No later than June 30, 2011, the Commission shall review
9the limitation on the amount of energy efficiency and
10demand-response measures implemented pursuant to this Section
11and report to the General Assembly its findings as to whether
12that limitation unduly constrains the procurement of energy
13efficiency and demand-response measures.
14    (e) Electric utilities shall be responsible for overseeing
15the design, development, and filing of energy efficiency and
16demand-response plans with the Commission. Electric utilities
17shall implement 100% of the demand-response measures in the
18plans. Electric utilities shall implement 75% of the energy
19efficiency measures approved by the Commission, and may, as
20part of that implementation, outsource various aspects of
21program development and implementation. The remaining 25% of
22those energy efficiency measures approved by the Commission
23shall be implemented by the Department of Commerce and Economic
24Opportunity, and must be designed in conjunction with the
25utility and the filing process. The Department may outsource
26development and implementation of energy efficiency measures.

 

 

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1A minimum of 10% of the entire portfolio of cost-effective
2energy efficiency measures shall be procured from units of
3local government, municipal corporations, school districts,
4and community college districts. The Department shall
5coordinate the implementation of these measures.
6    The apportionment of the dollars to cover the costs to
7implement the Department's share of the portfolio of energy
8efficiency measures shall be made to the Department once the
9Department has executed rebate agreements, grants, or
10contracts for energy efficiency measures and provided
11supporting documentation for those rebate agreements, grants,
12and contracts to the utility. The Department is authorized to
13adopt any rules necessary and prescribe procedures in order to
14ensure compliance by applicants in carrying out the purposes of
15rebate agreements for energy efficiency measures implemented
16by the Department made under this Section. The Department is
17also authorized to adopt any rules necessary and prescribe
18procedures in order to allow, after Department approval of an
19executed rebate agreement, grant, or contract for energy
20efficiency measures, that dollars to cover those costs be paid
21directly from the utility to applicants determined in
22compliance with Department standards.
23    The details of the measures implemented by the Department
24shall be submitted by the Department to the Commission in
25connection with the utility's filing regarding the energy
26efficiency and demand-response measures that the utility

 

 

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1implements.
2    A utility providing approved energy efficiency and
3demand-response measures in the State shall be permitted to
4recover costs of those measures through an automatic adjustment
5clause tariff filed with and approved by the Commission. The
6tariff shall be established outside the context of a general
7rate case. Each year the Commission shall initiate a review to
8reconcile any amounts collected with the actual costs and to
9determine the required adjustment to the annual tariff factor
10to match annual expenditures.
11    Each utility shall include, in its recovery of costs, the
12costs estimated for both the utility's and the Department's
13implementation of energy efficiency and demand-response
14measures. Costs collected by the utility for measures
15implemented by the Department shall be submitted to the
16Department pursuant to Section 605-323 of the Civil
17Administrative Code of Illinois, shall be deposited into the
18Energy Efficiency Portfolio Standards Fund, and shall be used
19by the Department solely for the purpose of implementing these
20measures. A utility shall not be required to advance any moneys
21to the Department but only to forward such funds as it has
22collected. In accordance with Department rules, the Department
23may also authorize direct payment from the utility to the
24Department's approved vendors for services provided by the
25vendors related to this Section. The Department shall report to
26the Commission on an annual basis regarding the costs actually

 

 

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1incurred by the Department in the implementation of the
2measures. Any changes to the costs of energy efficiency
3measures as a result of plan modifications shall be
4appropriately reflected in amounts recovered by the utility and
5turned over to the Department.
6    The portfolio of measures, administered by both the
7utilities and the Department, shall, in combination, be
8designed to achieve the annual savings targets described in
9subsections (b) and (c) of this Section, as modified by
10subsection (d) of this Section.
11    The utility and the Department shall agree upon a
12reasonable portfolio of measures and determine the measurable
13corresponding percentage of the savings goals associated with
14measures implemented by the utility or Department.
15    No utility shall be assessed a penalty under subsection (f)
16of this Section for failure to make a timely filing if that
17failure is the result of a lack of agreement with the
18Department with respect to the allocation of responsibilities
19or related costs or target assignments. In that case, the
20Department and the utility shall file their respective plans
21with the Commission and the Commission shall determine an
22appropriate division of measures and programs that meets the
23requirements of this Section.
24    If the Department is unable to meet incremental annual
25performance goals for the portion of the portfolio implemented
26by the Department, then the utility and the Department shall

 

 

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1jointly submit a modified filing to the Commission explaining
2the performance shortfall and recommending an appropriate
3course going forward, including any program modifications that
4may be appropriate in light of the evaluations conducted under
5item (7) of subsection (f) of this Section. In this case, the
6utility obligation to collect the Department's costs and turn
7over those funds to the Department under this subsection (e)
8shall continue only if the Commission approves the
9modifications to the plan proposed by the Department.
10    (f) No later than November 15, 2007, each electric utility
11shall file an energy efficiency and demand-response plan with
12the Commission to meet the energy efficiency and
13demand-response standards for 2008 through 2010. No later than
14October 1, 2010, each electric utility shall file an energy
15efficiency and demand-response plan with the Commission to meet
16the energy efficiency and demand-response standards for 2011
17through 2013. Every 3 years thereafter, each electric utility
18shall file, no later than September 1, an energy efficiency and
19demand-response plan with the Commission. If a utility does not
20file such a plan by September 1 of an applicable year, it shall
21face a penalty of $100,000 per day until the plan is filed.
22Each utility's plan shall set forth the utility's proposals to
23meet the utility's portion of the energy efficiency standards
24identified in subsection (b) and the demand-response standards
25identified in subsection (c) of this Section as modified by
26subsections (d) and (e), taking into account the unique

 

 

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1circumstances of the utility's service territory. The
2Commission shall seek public comment on the utility's plan and
3shall issue an order approving or disapproving each plan within
45 months after its submission. If the Commission disapproves a
5plan, the Commission shall, within 30 days, describe in detail
6the reasons for the disapproval and describe a path by which
7the utility may file a revised draft of the plan to address the
8Commission's concerns satisfactorily. If the utility does not
9refile with the Commission within 60 days, the utility shall be
10subject to penalties at a rate of $100,000 per day until the
11plan is filed. This process shall continue, and penalties shall
12accrue, until the utility has successfully filed a portfolio of
13energy efficiency and demand-response measures. Penalties
14shall be deposited into the Energy Efficiency Trust Fund. In
15submitting proposed energy efficiency and demand-response
16plans and funding levels to meet the savings goals adopted by
17this Act the utility shall:
18        (1) Demonstrate that its proposed energy efficiency
19    and demand-response measures will achieve the requirements
20    that are identified in subsections (b) and (c) of this
21    Section, as modified by subsections (d) and (e).
22        (2) Present specific proposals to implement new
23    building and appliance standards that have been placed into
24    effect.
25        (3) Present estimates of the total amount paid for
26    electric service expressed on a per kilowatthour basis

 

 

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1    associated with the proposed portfolio of measures
2    designed to meet the requirements that are identified in
3    subsections (b) and (c) of this Section, as modified by
4    subsections (d) and (e).
5        (4) Coordinate with the Department to present a
6    portfolio of energy efficiency measures proportionate to
7    the share of total annual utility revenues in Illinois from
8    households at or below 150% of the poverty level. The
9    energy efficiency programs shall be targeted to households
10    with incomes at or below 80% of area median income.
11        (5) Demonstrate that its overall portfolio of energy
12    efficiency and demand-response measures, not including
13    programs covered by item (4) of this subsection (f), are
14    cost-effective using the total resource cost test and
15    represent a diverse cross-section of opportunities for
16    customers of all rate classes to participate in the
17    programs.
18        (6) Include a proposed cost-recovery tariff mechanism
19    to fund the proposed energy efficiency and demand-response
20    measures and to ensure the recovery of the prudently and
21    reasonably incurred costs of Commission-approved programs.
22        (7) Provide for an annual independent evaluation of the
23    performance of the cost-effectiveness of the utility's
24    portfolio of measures and the Department's portfolio of
25    measures, as well as a full review of the 3-year results of
26    the broader net program impacts and, to the extent

 

 

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1    practical, for adjustment of the measures on a
2    going-forward basis as a result of the evaluations. The
3    resources dedicated to evaluation shall not exceed 3% of
4    portfolio resources in any given year.
5    (g) No more than 3% of energy efficiency and
6demand-response program revenue may be allocated for
7demonstration of breakthrough equipment and devices.
8    (h) This Section does not apply to an electric utility that
9on December 31, 2005 provided electric service to fewer than
10100,000 customers in Illinois.
11    (i) If, after 2 years, an electric utility fails to meet
12the efficiency standard specified in subsection (b) of this
13Section, as modified by subsections (d) and (e), it shall make
14a contribution to the Low-Income Home Energy Assistance
15Program. The combined total liability for failure to meet the
16goal shall be $1,000,000, which shall be assessed as follows: a
17large electric utility shall pay $665,000, and a medium
18electric utility shall pay $335,000. If, after 3 years, an
19electric utility fails to meet the efficiency standard
20specified in subsection (b) of this Section, as modified by
21subsections (d) and (e), it shall make a contribution to the
22Low-Income Home Energy Assistance Program. The combined total
23liability for failure to meet the goal shall be $1,000,000,
24which shall be assessed as follows: a large electric utility
25shall pay $665,000, and a medium electric utility shall pay
26$335,000. In addition, the responsibility for implementing the

 

 

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1energy efficiency measures of the utility making the payment
2shall be transferred to the Illinois Power Agency if, after 3
3years, or in any subsequent 3-year period, the utility fails to
4meet the efficiency standard specified in subsection (b) of
5this Section, as modified by subsections (d) and (e). The
6Agency shall implement a competitive procurement program to
7procure resources necessary to meet the standards specified in
8this Section as modified by subsections (d) and (e), with costs
9for those resources to be recovered in the same manner as
10products purchased through the procurement plan as provided in
11Section 16-111.5. The Director shall implement this
12requirement in connection with the procurement plan as provided
13in Section 16-111.5.
14    For purposes of this Section, (i) a "large electric
15utility" is an electric utility that, on December 31, 2005,
16served more than 2,000,000 electric customers in Illinois; (ii)
17a "medium electric utility" is an electric utility that, on
18December 31, 2005, served 2,000,000 or fewer but more than
19100,000 electric customers in Illinois; and (iii) Illinois
20electric utilities that are affiliated by virtue of a common
21parent company are considered a single electric utility.
22    (j) If, after 3 years, or any subsequent 3-year period, the
23Department fails to implement the Department's share of energy
24efficiency measures required by the standards in subsection
25(b), then the Illinois Power Agency may assume responsibility
26for and control of the Department's share of the required

 

 

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1energy efficiency measures. The Agency shall implement a
2competitive procurement program to procure resources necessary
3to meet the standards specified in this Section, with the costs
4of these resources to be recovered in the same manner as
5provided for the Department in this Section.
6    (k) No electric utility shall be deemed to have failed to
7meet the energy efficiency standards to the extent any such
8failure is due to a failure of the Department or the Agency.
9(Source: P.A. 97-616, eff. 10-26-11; 97-841, eff. 7-20-12;
1098-90, eff. 7-15-13.)
 
11    (220 ILCS 5/8-104)
12    Sec. 8-104. Natural gas energy efficiency programs.
13    (a) It is the policy of the State that natural gas
14utilities and the Department of Commerce and Economic
15Opportunity are required to use cost-effective energy
16efficiency to reduce direct and indirect costs to consumers. It
17serves the public interest to allow natural gas utilities to
18recover costs for reasonably and prudently incurred expenses
19for cost-effective energy efficiency measures.
20    (b) For purposes of this Section, "energy efficiency" means
21measures that reduce the amount of energy required to achieve a
22given end use. "Energy efficiency" also includes measures that
23reduce the total Btus of electricity and natural gas needed to
24meet the end use or uses. "Cost-effective" means that the
25measures satisfy the total resource cost test which, for

 

 

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1purposes of this Section, means a standard that is met if, for
2an investment in energy efficiency, the benefit-cost ratio is
3greater than one. The benefit-cost ratio is the ratio of the
4net present value of the total benefits of the measures to the
5net present value of the total costs as calculated over the
6lifetime of the measures. The total resource cost test compares
7the sum of avoided natural gas utility costs, representing the
8benefits that accrue to the system and the participant in the
9delivery of those efficiency measures, as well as other
10quantifiable societal benefits, including avoided electric
11utility costs, to the sum of all incremental costs of end use
12measures (including both utility and participant
13contributions), plus costs to administer, deliver, and
14evaluate each demand-side measure, to quantify the net savings
15obtained by substituting demand-side measures for supply
16resources. In calculating avoided costs, reasonable estimates
17shall be included for financial costs likely to be imposed by
18future regulation of emissions of greenhouse gases. The
19low-income programs described in item (4) of subsection (f) of
20this Section shall not be required to meet the total resource
21cost test.
22    (c) Natural gas utilities shall implement cost-effective
23energy efficiency measures to meet at least the following
24natural gas savings requirements, which shall be based upon the
25total amount of gas delivered to retail customers, other than
26the customers described in subsection (m) of this Section,

 

 

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1during calendar year 2009 multiplied by the applicable
2percentage. Natural gas utilities may comply with this Section
3by meeting the annual incremental savings goal in the
4applicable year or by showing that total cumulative annual
5savings within a 3-year planning period associated with
6measures implemented after May 31, 2011 were equal to the sum
7of each annual incremental savings requirement from May 31,
82011 through the end of the applicable year:
9        (1) 0.2% by May 31, 2012;
10        (2) an additional 0.4% by May 31, 2013, increasing
11    total savings to .6%;
12        (3) an additional 0.6% by May 31, 2014, increasing
13    total savings to 1.2%;
14        (4) an additional 0.8% by May 31, 2015, increasing
15    total savings to 2.0%;
16        (5) an additional 1% by May 31, 2016, increasing total
17    savings to 3.0%;
18        (6) an additional 1.2% by May 31, 2017, increasing
19    total savings to 4.2%;
20        (7) an additional 1.4% by May 31, 2018, increasing
21    total savings to 5.6%;
22        (8) an additional 1.5% by May 31, 2019, increasing
23    total savings to 7.1%; and
24        (9) an additional 1.5% in each 12-month period
25    thereafter.
26    (d) Notwithstanding the requirements of subsection (c) of

 

 

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1this Section, a natural gas utility shall limit the amount of
2energy efficiency implemented in any 3-year reporting period
3established by subsection (f) of Section 8-104 of this Act, by
4an amount necessary to limit the estimated average increase in
5the amounts paid by retail customers in connection with natural
6gas service to no more than 2% in the applicable 3-year
7reporting period. The energy savings requirements in
8subsection (c) of this Section may be reduced by the Commission
9for the subject plan, if the utility demonstrates by
10substantial evidence that it is highly unlikely that the
11requirements could be achieved without exceeding the
12applicable spending limits in any 3-year reporting period. No
13later than September 1, 2013, the Commission shall review the
14limitation on the amount of energy efficiency measures
15implemented pursuant to this Section and report to the General
16Assembly, in the report required by subsection (k) of this
17Section, its findings as to whether that limitation unduly
18constrains the procurement of energy efficiency measures.
19    (e) Natural gas utilities shall be responsible for
20overseeing the design, development, and filing of their
21efficiency plans with the Commission. The utility shall utilize
2275% of the available funding associated with energy efficiency
23programs approved by the Commission, and may outsource various
24aspects of program development and implementation. The
25remaining 25% of available funding shall be used by the
26Department of Commerce and Economic Opportunity to implement

 

 

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1energy efficiency measures that achieve no less than 20% of the
2requirements of subsection (c) of this Section. Such measures
3shall be designed in conjunction with the utility and approved
4by the Commission. The Department may outsource development and
5implementation of energy efficiency measures. A minimum of 10%
6of the entire portfolio of cost-effective energy efficiency
7measures shall be procured from local government, municipal
8corporations, school districts, and community college
9districts. Five percent of the entire portfolio of
10cost-effective energy efficiency measures may be granted to
11local government and municipal corporations for market
12transformation initiatives. The Department shall coordinate
13the implementation of these measures and shall integrate
14delivery of natural gas efficiency programs with electric
15efficiency programs delivered pursuant to Section 8-103 of this
16Act, unless the Department can show that integration is not
17feasible.
18    The apportionment of the dollars to cover the costs to
19implement the Department's share of the portfolio of energy
20efficiency measures shall be made to the Department once the
21Department has executed rebate agreements, grants, or
22contracts for energy efficiency measures and provided
23supporting documentation for those rebate agreements, grants,
24and contracts to the utility. The Department is authorized to
25adopt any rules necessary and prescribe procedures in order to
26ensure compliance by applicants in carrying out the purposes of

 

 

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1rebate agreements for energy efficiency measures implemented
2by the Department made under this Section. The Department is
3also authorized to adopt any rules necessary and prescribe
4procedures in order to allow, after Department approval of an
5executed rebate agreement, grant, or contract for energy
6efficiency measures, that dollars to cover those costs be paid
7directly from the utility to applicants determined in
8compliance with Department standards.
9    The details of the measures implemented by the Department
10shall be submitted by the Department to the Commission in
11connection with the utility's filing regarding the energy
12efficiency measures that the utility implements.
13    A utility providing approved energy efficiency measures in
14this State shall be permitted to recover costs of those
15measures through an automatic adjustment clause tariff filed
16with and approved by the Commission. The tariff shall be
17established outside the context of a general rate case and
18shall be applicable to the utility's customers other than the
19customers described in subsection (m) of this Section. Each
20year the Commission shall initiate a review to reconcile any
21amounts collected with the actual costs and to determine the
22required adjustment to the annual tariff factor to match annual
23expenditures.
24    Each utility shall include, in its recovery of costs, the
25costs estimated for both the utility's and the Department's
26implementation of energy efficiency measures. Costs collected

 

 

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1by the utility for measures implemented by the Department shall
2be submitted to the Department pursuant to Section 605-323 of
3the Civil Administrative Code of Illinois, shall be deposited
4into the Energy Efficiency Portfolio Standards Fund, and shall
5be used by the Department solely for the purpose of
6implementing these measures. A utility shall not be required to
7advance any moneys to the Department but only to forward such
8funds as it has collected. In accordance with Department rules,
9the Department may also authorize direct payment from the
10utility to the Department's approved vendors for services
11provided by the vendors related to this Section. The Department
12shall report to the Commission on an annual basis regarding the
13costs actually incurred by the Department in the implementation
14of the measures. Any changes to the costs of energy efficiency
15measures as a result of plan modifications shall be
16appropriately reflected in amounts recovered by the utility and
17turned over to the Department.
18    The portfolio of measures, administered by both the
19utilities and the Department, shall, in combination, be
20designed to achieve the annual energy savings requirements set
21forth in subsection (c) of this Section, as modified by
22subsection (d) of this Section.
23    The utility and the Department shall agree upon a
24reasonable portfolio of measures and determine the measurable
25corresponding percentage of the savings goals associated with
26measures implemented by the Department.

 

 

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1    No utility shall be assessed a penalty under subsection (f)
2of this Section for failure to make a timely filing if that
3failure is the result of a lack of agreement with the
4Department with respect to the allocation of responsibilities
5or related costs or target assignments. In that case, the
6Department and the utility shall file their respective plans
7with the Commission and the Commission shall determine an
8appropriate division of measures and programs that meets the
9requirements of this Section.
10    If the Department is unable to meet performance
11requirements for the portion of the portfolio implemented by
12the Department, then the utility and the Department shall
13jointly submit a modified filing to the Commission explaining
14the performance shortfall and recommending an appropriate
15course going forward, including any program modifications that
16may be appropriate in light of the evaluations conducted under
17item (8) of subsection (f) of this Section. In this case, the
18utility obligation to collect the Department's costs and turn
19over those funds to the Department under this subsection (e)
20shall continue only if the Commission approves the
21modifications to the plan proposed by the Department.
22    (f) No later than October 1, 2010, each gas utility shall
23file an energy efficiency plan with the Commission to meet the
24energy efficiency standards through May 31, 2014. Every 3 years
25thereafter, each utility shall file, no later than October 1,
26an energy efficiency plan with the Commission. If a utility

 

 

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1does not file such a plan by October 1 of the applicable year,
2then it shall face a penalty of $100,000 per day until the plan
3is filed. Each utility's plan shall set forth the utility's
4proposals to meet the utility's portion of the energy
5efficiency standards identified in subsection (c) of this
6Section, as modified by subsection (d) of this Section, taking
7into account the unique circumstances of the utility's service
8territory. The Commission shall seek public comment on the
9utility's plan and shall issue an order approving or
10disapproving each plan. If the Commission disapproves a plan,
11the Commission shall, within 30 days, describe in detail the
12reasons for the disapproval and describe a path by which the
13utility may file a revised draft of the plan to address the
14Commission's concerns satisfactorily. If the utility does not
15refile with the Commission within 60 days after the
16disapproval, the utility shall be subject to penalties at a
17rate of $100,000 per day until the plan is filed. This process
18shall continue, and penalties shall accrue, until the utility
19has successfully filed a portfolio of energy efficiency
20measures. Penalties shall be deposited into the Energy
21Efficiency Trust Fund and the cost of any such penalties may
22not be recovered from ratepayers. In submitting proposed energy
23efficiency plans and funding levels to meet the savings goals
24adopted by this Act the utility shall:
25        (1) Demonstrate that its proposed energy efficiency
26    measures will achieve the requirements that are identified

 

 

09900SB2803sam001- 23 -LRB099 20649 EGJ 45891 a

1    in subsection (c) of this Section, as modified by
2    subsection (d) of this Section.
3        (2) Present specific proposals to implement new
4    building and appliance standards that have been placed into
5    effect.
6        (3) Present estimates of the total amount paid for gas
7    service expressed on a per therm basis associated with the
8    proposed portfolio of measures designed to meet the
9    requirements that are identified in subsection (c) of this
10    Section, as modified by subsection (d) of this Section.
11        (4) Coordinate with the Department to present a
12    portfolio of energy efficiency measures proportionate to
13    the share of total annual utility revenues in Illinois from
14    households at or below 150% of the poverty level. Such
15    programs shall be targeted to households with incomes at or
16    below 80% of area median income.
17        (5) Demonstrate that its overall portfolio of energy
18    efficiency measures, not including programs covered by
19    item (4) of this subsection (f), are cost-effective using
20    the total resource cost test and represent a diverse cross
21    section of opportunities for customers of all rate classes
22    to participate in the programs.
23        (6) Demonstrate that a gas utility affiliated with an
24    electric utility that is required to comply with Section
25    8-103 of this Act has integrated gas and electric
26    efficiency measures into a single program that reduces

 

 

09900SB2803sam001- 24 -LRB099 20649 EGJ 45891 a

1    program or participant costs and appropriately allocates
2    costs to gas and electric ratepayers. The Department shall
3    integrate all gas and electric programs it delivers in any
4    such utilities' service territories, unless the Department
5    can show that integration is not feasible or appropriate.
6        (7) Include a proposed cost recovery tariff mechanism
7    to fund the proposed energy efficiency measures and to
8    ensure the recovery of the prudently and reasonably
9    incurred costs of Commission-approved programs.
10        (8) Provide for quarterly status reports tracking
11    implementation of and expenditures for the utility's
12    portfolio of measures and the Department's portfolio of
13    measures, an annual independent review, and a full
14    independent evaluation of the 3-year results of the
15    performance and the cost-effectiveness of the utility's
16    and Department's portfolios of measures and broader net
17    program impacts and, to the extent practical, for
18    adjustment of the measures on a going forward basis as a
19    result of the evaluations. The resources dedicated to
20    evaluation shall not exceed 3% of portfolio resources in
21    any given 3-year period.
22    (g) No more than 3% of expenditures on energy efficiency
23measures may be allocated for demonstration of breakthrough
24equipment and devices.
25    (h) Illinois natural gas utilities that are affiliated by
26virtue of a common parent company may, at the utilities'

 

 

09900SB2803sam001- 25 -LRB099 20649 EGJ 45891 a

1request, be considered a single natural gas utility for
2purposes of complying with this Section.
3    (i) If, after 3 years, a gas utility fails to meet the
4efficiency standard specified in subsection (c) of this Section
5as modified by subsection (d), then it shall make a
6contribution to the Low-Income Home Energy Assistance Program.
7The total liability for failure to meet the goal shall be
8assessed as follows:
9        (1) a large gas utility shall pay $600,000;
10        (2) a medium gas utility shall pay $400,000; and
11        (3) a small gas utility shall pay $200,000.
12    For purposes of this Section, (i) a "large gas utility" is
13a gas utility that on December 31, 2008, served more than
141,500,000 gas customers in Illinois; (ii) a "medium gas
15utility" is a gas utility that on December 31, 2008, served
16fewer than 1,500,000, but more than 500,000 gas customers in
17Illinois; and (iii) a "small gas utility" is a gas utility that
18on December 31, 2008, served fewer than 500,000 and more than
19100,000 gas customers in Illinois. The costs of this
20contribution may not be recovered from ratepayers.
21    If a gas utility fails to meet the efficiency standard
22specified in subsection (c) of this Section, as modified by
23subsection (d) of this Section, in any 2 consecutive 3-year
24planning periods, then the responsibility for implementing the
25utility's energy efficiency measures shall be transferred to an
26independent program administrator selected by the Commission.

 

 

09900SB2803sam001- 26 -LRB099 20649 EGJ 45891 a

1Reasonable and prudent costs incurred by the independent
2program administrator to meet the efficiency standard
3specified in subsection (c) of this Section, as modified by
4subsection (d) of this Section, may be recovered from the
5customers of the affected gas utilities, other than customers
6described in subsection (m) of this Section. The utility shall
7provide the independent program administrator with all
8information and assistance necessary to perform the program
9administrator's duties including but not limited to customer,
10account, and energy usage data, and shall allow the program
11administrator to include inserts in customer bills. The utility
12may recover reasonable costs associated with any such
13assistance.
14    (j) No utility shall be deemed to have failed to meet the
15energy efficiency standards to the extent any such failure is
16due to a failure of the Department.
17    (k) Not later than January 1, 2012, the Commission shall
18develop and solicit public comment on a plan to foster
19statewide coordination and consistency between statutorily
20mandated natural gas and electric energy efficiency programs to
21reduce program or participant costs or to improve program
22performance. Not later than September 1, 2013, the Commission
23shall issue a report to the General Assembly containing its
24findings and recommendations.
25    (l) This Section does not apply to a gas utility that on
26January 1, 2009, provided gas service to fewer than 100,000

 

 

09900SB2803sam001- 27 -LRB099 20649 EGJ 45891 a

1customers in Illinois.
2    (m) Subsections (a) through (k) of this Section do not
3apply to customers of a natural gas utility that have a North
4American Industry Classification System code number that is
522111 or any such code number beginning with the digits 31, 32,
6or 33 and (i) annual usage in the aggregate of 4 million therms
7or more within the service territory of the affected gas
8utility or with aggregate usage of 8 million therms or more in
9this State and complying with the provisions of item (l) of
10this subsection (m); or (ii) using natural gas as feedstock and
11meeting the usage requirements described in item (i) of this
12subsection (m), to the extent such annual feedstock usage is
13greater than 60% of the customer's total annual usage of
14natural gas.
15        (1) Customers described in this subsection (m) of this
16    Section shall apply, on a form approved on or before
17    October 1, 2009 by the Department, to the Department to be
18    designated as a self-directing customer ("SDC") or as an
19    exempt customer using natural gas as a feedstock from which
20    other products are made, including, but not limited to,
21    feedstock for a hydrogen plant, on or before the 1st day of
22    February, 2010. Thereafter, application may be made not
23    less than 6 months before the filing date of the gas
24    utility energy efficiency plan described in subsection (f)
25    of this Section; however, a new customer that commences
26    taking service from a natural gas utility after February 1,

 

 

09900SB2803sam001- 28 -LRB099 20649 EGJ 45891 a

1    2010 may apply to become a SDC or exempt customer up to 30
2    days after beginning service. Customers described in this
3    subsection (m) that have not already been approved by the
4    Department may apply to be designated a self-directing
5    customer or exempt customer, on a form approved by the
6    Department, between September 1, 2013 and September 30,
7    2013. Customer applications that are approved by the
8    Department under this amendatory Act of the 98th General
9    Assembly shall be considered to be a self-directing
10    customer or exempt customer, as applicable, for the current
11    3-year planning period effective December 1, 2013. Such
12    application shall contain the following:
13            (A) the customer's certification that, at the time
14        of its application, it qualifies to be a SDC or exempt
15        customer described in this subsection (m) of this
16        Section;
17            (B) in the case of a SDC, the customer's
18        certification that it has established or will
19        establish by the beginning of the utility's 3-year
20        planning period commencing subsequent to the
21        application, and will maintain for accounting
22        purposes, an energy efficiency reserve account and
23        that the customer will accrue funds in said account to
24        be held for the purpose of funding, in whole or in
25        part, energy efficiency measures of the customer's
26        choosing, which may include, but are not limited to,

 

 

09900SB2803sam001- 29 -LRB099 20649 EGJ 45891 a

1        projects involving combined heat and power systems
2        that use the same energy source both for the generation
3        of electrical or mechanical power and the production of
4        steam or another form of useful thermal energy or the
5        use of combustible gas produced from biomass, or both;
6            (C) in the case of a SDC, the customer's
7        certification that annual funding levels for the
8        energy efficiency reserve account will be equal to 2%
9        of the customer's cost of natural gas, composed of the
10        customer's commodity cost and the delivery service
11        charges paid to the gas utility, or $150,000, whichever
12        is less;
13            (D) in the case of a SDC, the customer's
14        certification that the required reserve account
15        balance will be capped at 3 years' worth of accruals
16        and that the customer may, at its option, make further
17        deposits to the account to the extent such deposit
18        would increase the reserve account balance above the
19        designated cap level;
20            (E) in the case of a SDC, the customer's
21        certification that by October 1 of each year, beginning
22        no sooner than October 1, 2012, the customer will
23        report to the Department information, for the 12-month
24        period ending May 31 of the same year, on all deposits
25        and reductions, if any, to the reserve account during
26        the reporting year, and to the extent deposits to the

 

 

09900SB2803sam001- 30 -LRB099 20649 EGJ 45891 a

1        reserve account in any year are in an amount less than
2        $150,000, the basis for such reduced deposits; reserve
3        account balances by month; a description of energy
4        efficiency measures undertaken by the customer and
5        paid for in whole or in part with funds from the
6        reserve account; an estimate of the energy saved, or to
7        be saved, by the measure; and that the report shall
8        include a verification by an officer or plant manager
9        of the customer or by a registered professional
10        engineer or certified energy efficiency trade
11        professional that the funds withdrawn from the reserve
12        account were used for the energy efficiency measures;
13            (F) in the case of an exempt customer, the
14        customer's certification of the level of gas usage as
15        feedstock in the customer's operation in a typical year
16        and that it will provide information establishing this
17        level, upon request of the Department;
18            (G) in the case of either an exempt customer or a
19        SDC, the customer's certification that it has provided
20        the gas utility or utilities serving the customer with
21        a copy of the application as filed with the Department;
22            (H) in the case of either an exempt customer or a
23        SDC, certification of the natural gas utility or
24        utilities serving the customer in Illinois including
25        the natural gas utility accounts that are the subject
26        of the application; and

 

 

09900SB2803sam001- 31 -LRB099 20649 EGJ 45891 a

1            (I) in the case of either an exempt customer or a
2        SDC, a verification signed by a plant manager or an
3        authorized corporate officer attesting to the
4        truthfulness and accuracy of the information contained
5        in the application.
6        (2) The Department shall review the application to
7    determine that it contains the information described in
8    provisions (A) through (I) of item (1) of this subsection
9    (m), as applicable. The review shall be completed within 30
10    days after the date the application is filed with the
11    Department. Absent a determination by the Department
12    within the 30-day period, the applicant shall be considered
13    to be a SDC or exempt customer, as applicable, for all
14    subsequent 3-year planning periods, as of the date of
15    filing the application described in this subsection (m). If
16    the Department determines that the application does not
17    contain the applicable information described in provisions
18    (A) through (I) of item (1) of this subsection (m), it
19    shall notify the customer, in writing, of its determination
20    that the application does not contain the required
21    information and identify the information that is missing,
22    and the customer shall provide the missing information
23    within 15 working days after the date of receipt of the
24    Department's notification.
25        (3) The Department shall have the right to audit the
26    information provided in the customer's application and

 

 

09900SB2803sam001- 32 -LRB099 20649 EGJ 45891 a

1    annual reports to ensure continued compliance with the
2    requirements of this subsection. Based on the audit, if the
3    Department determines the customer is no longer in
4    compliance with the requirements of items (A) through (I)
5    of item (1) of this subsection (m), as applicable, the
6    Department shall notify the customer in writing of the
7    noncompliance. The customer shall have 30 days to establish
8    its compliance, and failing to do so, may have its status
9    as a SDC or exempt customer revoked by the Department. The
10    Department shall treat all information provided by any
11    customer seeking SDC status or exemption from the
12    provisions of this Section as strictly confidential.
13        (4) Upon request, or on its own motion, the Commission
14    may open an investigation, no more than once every 3 years
15    and not before October 1, 2014, to evaluate the
16    effectiveness of the self-directing program described in
17    this subsection (m).
18    Customers described in this subsection (m) that applied to
19the Department on January 3, 2013, were approved by the
20Department on February 13, 2013 to be a self-directing customer
21or exempt customer, and receive natural gas from a utility that
22provides gas service to at least 500,000 retail customers in
23Illinois and electric service to at least 1,000,000 retail
24customers in Illinois shall be considered to be a
25self-directing customer or exempt customer, as applicable, for
26the current 3-year planning period effective December 1, 2013.

 

 

09900SB2803sam001- 33 -LRB099 20649 EGJ 45891 a

1    (n) The applicability of this Section to customers
2described in subsection (m) of this Section is conditioned on
3the existence of the SDC program. In no event will any
4provision of this Section apply to such customers after January
51, 2020.
6(Source: P.A. 97-813, eff. 7-13-12; 97-841, eff. 7-20-12;
798-90, eff. 7-15-13; 98-225, eff. 8-9-13; 98-604, eff.
812-17-13.)".