Full Text of HB2494 98th General Assembly
HB2494eng 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Public Utilities Act is amended by changing | 5 | | Section 19-140 as follows: | 6 | | (220 ILCS 5/19-140)
| 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.
| 25 | | (Source: P.A. 96-33, eff. 7-10-09.)
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