Full Text of SB3453 97th General Assembly
SB3453enr 97TH 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 State Finance Act is amended by adding | 5 | | Sections 5.811 and 6z-93 as follows: | 6 | | (30 ILCS 105/5.811 new) | 7 | | Sec. 5.811. The Energy Efficiency Portfolio Standards | 8 | | Fund. | 9 | | (30 ILCS 105/6z-93 new) | 10 | | Sec. 6z-93. Energy Efficiency Portfolio Standards Fund. | 11 | | (a) The Energy Efficiency Portfolio Standards Fund is | 12 | | created as a special fund in the State treasury. All moneys | 13 | | received by the Department of Commerce and Economic Opportunity | 14 | | under Sections 8-103 and 8-104 of the Public Utilities Act | 15 | | shall be deposited into the Energy Efficiency Portfolio | 16 | | Standards Fund. Subject to appropriation, moneys in the Energy | 17 | | Efficiency Portfolio Standards Fund may be used only for the | 18 | | purposes authorized by Sections 8-103 and 8-104 of the Public | 19 | | Utilities Act. | 20 | | (b) As soon as possible after June 1, 2012, and in no event | 21 | | later than July 31, 2012, the Director of Commerce and Economic | 22 | | Opportunity shall certify the balance in the DCEO Energy |
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| 1 | | Projects Fund, less any federal moneys and less any amounts | 2 | | obligated, and the State Comptroller shall transfer such amount | 3 | | from the DCEO Energy Projects Fund to the Energy Efficiency | 4 | | Portfolio Standards Fund. | 5 | | Section 10. The Public Utilities Act is amended by changing | 6 | | Sections 8-103 and 8-104 as follows:
| 7 | | (220 ILCS 5/8-103)
| 8 | | Sec. 8-103. Energy efficiency and demand-response | 9 | | measures. | 10 | | (a) It is the policy of the State that electric utilities | 11 | | are required to use cost-effective energy efficiency and | 12 | | demand-response measures to reduce delivery load. Requiring | 13 | | investment in cost-effective energy efficiency and | 14 | | demand-response measures will reduce direct and indirect costs | 15 | | to consumers by decreasing environmental impacts and by | 16 | | avoiding or delaying the need for new generation, transmission, | 17 | | and distribution infrastructure. It serves the public interest | 18 | | to allow electric utilities to recover costs for reasonably and | 19 | | prudently incurred expenses for energy efficiency and | 20 | | demand-response measures. As used in this Section, | 21 | | "cost-effective" means that the measures satisfy the total | 22 | | resource cost test. The low-income measures described in | 23 | | subsection (f)(4) of this Section shall not be required to meet | 24 | | the total resource cost test. For purposes of this Section, the |
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| 1 | | terms "energy-efficiency", "demand-response", "electric | 2 | | utility", and "total resource cost test" shall have the | 3 | | meanings set forth in the Illinois Power Agency Act. For | 4 | | purposes of this Section, the amount per kilowatthour means the | 5 | | total amount paid for electric service expressed on a per | 6 | | kilowatthour basis. For purposes of this Section, the total | 7 | | amount paid for electric service includes without limitation | 8 | | estimated amounts paid for supply, transmission, distribution, | 9 | | surcharges, and add-on-taxes. | 10 | | (b) Electric utilities shall implement cost-effective | 11 | | energy efficiency measures to meet the following incremental | 12 | | annual energy savings goals: | 13 | | (1) 0.2% of energy delivered in the year commencing | 14 | | June 1, 2008; | 15 | | (2) 0.4% of energy delivered in the year commencing | 16 | | June 1, 2009; | 17 | | (3) 0.6% of energy delivered in the year commencing | 18 | | June 1, 2010; | 19 | | (4) 0.8% of energy delivered in the year commencing | 20 | | June 1, 2011; | 21 | | (5) 1% of energy delivered in the year commencing June | 22 | | 1, 2012; | 23 | | (6) 1.4% of energy delivered in the year commencing | 24 | | June 1, 2013; | 25 | | (7) 1.8% of energy delivered in the year commencing | 26 | | June 1, 2014; and |
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| 1 | | (8) 2% of energy delivered in the year commencing June | 2 | | 1, 2015 and each year thereafter. | 3 | | (c) Electric utilities shall implement cost-effective | 4 | | demand-response measures to reduce peak demand by 0.1% over the | 5 | | prior year for eligible retail customers, as defined in Section | 6 | | 16-111.5 of this Act, and for customers that elect hourly | 7 | | service from the utility pursuant to Section 16-107 of this | 8 | | Act, provided those customers have not been declared | 9 | | competitive. This requirement commences June 1, 2008 and | 10 | | continues for 10 years. | 11 | | (d) Notwithstanding the requirements of subsections (b) | 12 | | and (c) of this Section, an electric utility shall reduce the | 13 | | amount of energy efficiency and demand-response measures | 14 | | implemented in any single year by an amount necessary to limit | 15 | | the estimated average increase in the amounts paid by retail | 16 | | customers in connection with electric service due to the cost | 17 | | of those measures to: | 18 | | (1) in 2008, no more than 0.5% of the amount paid per | 19 | | kilowatthour by those customers during the year ending May | 20 | | 31, 2007; | 21 | | (2) in 2009, the greater of an additional 0.5% of the | 22 | | amount paid per kilowatthour by those customers during the | 23 | | year ending May 31, 2008 or 1% of the amount paid per | 24 | | kilowatthour by those customers during the year ending May | 25 | | 31, 2007; | 26 | | (3) in 2010, the greater of an additional 0.5% of the |
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| 1 | | amount paid per kilowatthour by those customers during the | 2 | | year ending May 31, 2009 or 1.5% of the amount paid per | 3 | | kilowatthour by those customers during the year ending May | 4 | | 31, 2007; | 5 | | (4) in 2011, the greater of an additional 0.5% of the | 6 | | amount paid per kilowatthour by those customers during the | 7 | | year ending May 31, 2010 or 2% of the amount paid per | 8 | | kilowatthour by those customers during the year ending May | 9 | | 31, 2007; and
| 10 | | (5) thereafter, the amount of energy efficiency and | 11 | | demand-response measures implemented for any single year | 12 | | shall be reduced by an amount necessary to limit the | 13 | | estimated average net increase due to the cost of these | 14 | | measures included in the amounts paid by eligible retail | 15 | | customers in connection with electric service to no more | 16 | | than the greater of 2.015% of the amount paid per | 17 | | kilowatthour by those customers during the year ending May | 18 | | 31, 2007 or the incremental amount per kilowatthour paid | 19 | | for these measures in 2011.
| 20 | | No later than June 30, 2011, the Commission shall review | 21 | | the limitation on the amount of energy efficiency and | 22 | | demand-response measures implemented pursuant to this Section | 23 | | and report to the General Assembly its findings as to whether | 24 | | that limitation unduly constrains the procurement of energy | 25 | | efficiency and demand-response measures. | 26 | | (e) Electric utilities shall be responsible for overseeing |
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| 1 | | the design, development, and filing of energy efficiency and | 2 | | demand-response plans with the Commission. Electric utilities | 3 | | shall implement 100% of the demand-response measures in the | 4 | | plans. Electric utilities shall implement 75% of the energy | 5 | | efficiency measures approved by the Commission, and may, as | 6 | | part of that implementation, outsource various aspects of | 7 | | program development and implementation. The remaining 25% of | 8 | | those energy efficiency measures approved by the Commission | 9 | | shall be implemented by the Department of Commerce and Economic | 10 | | Opportunity, and must be designed in conjunction with the | 11 | | utility and the filing process. The Department may outsource | 12 | | development and implementation of energy efficiency measures. | 13 | | A minimum of 10% of the entire portfolio of cost-effective | 14 | | energy efficiency measures shall be procured from units of | 15 | | local government, municipal corporations, school districts, | 16 | | and community college districts. The Department shall | 17 | | coordinate the implementation of these measures. | 18 | | The apportionment of the dollars to cover the costs to | 19 | | implement the Department's share of the portfolio of energy | 20 | | efficiency measures shall be made to the Department once the | 21 | | Department has executed rebate agreements, grants , or | 22 | | contracts for energy efficiency measures and provided | 23 | | supporting documentation for those rebate agreements, grants , | 24 | | and the contracts to the utility. The Department is authorized | 25 | | to adopt any rules necessary and prescribe procedures in order | 26 | | to ensure compliance by applicants in carrying out the purposes |
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| 1 | | of rebate agreements for energy efficiency measures | 2 | | implemented by the Department made under this Section. | 3 | | The details of the measures implemented by the Department | 4 | | shall be submitted by the Department to the Commission in | 5 | | connection with the utility's filing regarding the energy | 6 | | efficiency and demand-response measures that the utility | 7 | | implements. | 8 | | A utility providing approved energy efficiency and | 9 | | demand-response measures in the State shall be permitted to | 10 | | recover costs of those measures through an automatic adjustment | 11 | | clause tariff filed with and approved by the Commission. The | 12 | | tariff shall be established outside the context of a general | 13 | | rate case. Each year the Commission shall initiate a review to | 14 | | reconcile any amounts collected with the actual costs and to | 15 | | determine the required adjustment to the annual tariff factor | 16 | | to match annual expenditures. | 17 | | Each utility shall include, in its recovery of costs, the | 18 | | costs estimated for both the utility's and the Department's | 19 | | implementation of energy efficiency and demand-response | 20 | | measures. Costs collected by the utility for measures | 21 | | implemented by the Department shall be submitted to the | 22 | | Department pursuant to Section 605-323 of the Civil | 23 | | Administrative Code of Illinois , shall be deposited into the | 24 | | Energy Efficiency Portfolio Standards Fund, and shall be used | 25 | | by the Department solely for the purpose of implementing these | 26 | | measures. A utility shall not be required to advance any moneys |
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| 1 | | to the Department but only to forward such funds as it has | 2 | | collected. The Department shall report to the Commission on an | 3 | | annual basis regarding the costs actually incurred by the | 4 | | Department in the implementation of the measures. Any changes | 5 | | to the costs of energy efficiency measures as a result of plan | 6 | | modifications shall be appropriately reflected in amounts | 7 | | recovered by the utility and turned over to the Department. | 8 | | The portfolio of measures, administered by both the | 9 | | utilities and the Department, shall, in combination, be | 10 | | designed to achieve the annual savings targets described in | 11 | | subsections (b) and (c) of this Section, as modified by | 12 | | subsection (d) of this Section. | 13 | | The utility and the Department shall agree upon a | 14 | | reasonable portfolio of measures and determine the measurable | 15 | | corresponding percentage of the savings goals associated with | 16 | | measures implemented by the utility or Department. | 17 | | No utility shall be assessed a penalty under subsection (f) | 18 | | of this Section for failure to make a timely filing if that | 19 | | failure is the result of a lack of agreement with the | 20 | | Department with respect to the allocation of responsibilities | 21 | | or related costs or target assignments. In that case, the | 22 | | Department and the utility shall file their respective plans | 23 | | with the Commission and the Commission shall determine an | 24 | | appropriate division of measures and programs that meets the | 25 | | requirements of this Section. | 26 | | If the Department is unable to meet incremental annual |
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| 1 | | performance goals for the portion of the portfolio implemented | 2 | | by the Department, then the utility and the Department shall | 3 | | jointly submit a modified filing to the Commission explaining | 4 | | the performance shortfall and recommending an appropriate | 5 | | course going forward, including any program modifications that | 6 | | may be appropriate in light of the evaluations conducted under | 7 | | item (7) of subsection (f) of this Section. In this case, the | 8 | | utility obligation to collect the Department's costs and turn | 9 | | over those funds to the Department under this subsection (e) | 10 | | shall continue only if the Commission approves the | 11 | | modifications to the plan proposed by the Department. | 12 | | (f) No later than November 15, 2007, each electric utility | 13 | | shall file an energy efficiency and demand-response plan with | 14 | | the Commission to meet the energy efficiency and | 15 | | demand-response standards for 2008 through 2010. No later than | 16 | | October 1, 2010, each electric utility shall file an energy | 17 | | efficiency and demand-response plan with the Commission to meet | 18 | | the energy efficiency and demand-response standards for 2011 | 19 | | through 2013. Every 3 years thereafter, each electric utility | 20 | | shall file, no later than September 1, an energy efficiency and | 21 | | demand-response plan with the Commission. If a utility does not | 22 | | file such a plan by September 1 of an applicable year, it shall | 23 | | face a penalty of $100,000 per day until the plan is filed. | 24 | | Each utility's plan shall set forth the utility's proposals to | 25 | | meet the utility's portion of the energy efficiency standards | 26 | | identified in subsection (b) and the demand-response standards |
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| 1 | | identified in subsection (c) of this Section as modified by | 2 | | subsections (d) and (e), taking into account the unique | 3 | | circumstances of the utility's service territory. The | 4 | | Commission shall seek public comment on the utility's plan and | 5 | | shall issue an order approving or disapproving each plan within | 6 | | 5 months after its submission. If the Commission disapproves a | 7 | | plan, the Commission shall, within 30 days, describe in detail | 8 | | the reasons for the disapproval and describe a path by which | 9 | | the utility may file a revised draft of the plan to address the | 10 | | Commission's concerns satisfactorily. If the utility does not | 11 | | refile with the Commission within 60 days, the utility shall be | 12 | | subject to penalties at a rate of $100,000 per day until the | 13 | | plan is filed. This process shall continue, and penalties shall | 14 | | accrue, until the utility has successfully filed a portfolio of | 15 | | energy efficiency and demand-response measures. Penalties | 16 | | shall be deposited into the Energy Efficiency Trust Fund. In | 17 | | submitting proposed energy efficiency and demand-response | 18 | | plans and funding levels to meet the savings goals adopted by | 19 | | this Act the utility shall: | 20 | | (1) Demonstrate that its proposed energy efficiency | 21 | | and demand-response measures will achieve the requirements | 22 | | that are identified in subsections (b) and (c) of this | 23 | | Section, as modified by subsections (d) and (e). | 24 | | (2) Present specific proposals to implement new | 25 | | building and appliance standards that have been placed into | 26 | | effect. |
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| 1 | | (3) Present estimates of the total amount paid for | 2 | | electric service expressed on a per kilowatthour basis | 3 | | associated with the proposed portfolio of measures | 4 | | designed to meet the requirements that are identified in | 5 | | subsections (b) and (c) of this Section, as modified by | 6 | | subsections (d) and (e). | 7 | | (4) Coordinate with the Department to present a | 8 | | portfolio of energy efficiency measures proportionate to | 9 | | the share of total annual utility revenues in Illinois from | 10 | | households at or below 150% of the poverty level. The | 11 | | energy efficiency programs shall be targeted to households | 12 | | with incomes at or below 80% of area median income. | 13 | | (5) Demonstrate that its overall portfolio of energy | 14 | | efficiency and demand-response measures, not including | 15 | | programs covered by item (4) of this subsection (f), are | 16 | | cost-effective using the total resource cost test and | 17 | | represent a diverse cross-section of opportunities for | 18 | | customers of all rate classes to participate in the | 19 | | programs. | 20 | | (6) Include a proposed cost-recovery tariff mechanism | 21 | | to fund the proposed energy efficiency and demand-response | 22 | | measures and to ensure the recovery of the prudently and | 23 | | reasonably incurred costs of Commission-approved programs. | 24 | | (7) Provide for an annual independent evaluation of the | 25 | | performance of the cost-effectiveness of the utility's | 26 | | portfolio of measures and the Department's portfolio of |
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| 1 | | measures, as well as a full review of the 3-year results of | 2 | | the broader net program impacts and, to the extent | 3 | | practical, for adjustment of the measures on a | 4 | | going-forward basis as a result of the evaluations. The | 5 | | resources dedicated to evaluation shall not exceed 3% of | 6 | | portfolio resources in any given year. | 7 | | (g) No more than 3% of energy efficiency and | 8 | | demand-response program revenue may be allocated for | 9 | | demonstration of breakthrough equipment and devices. | 10 | | (h) This Section does not apply to an electric utility that | 11 | | on December 31, 2005 provided electric service to fewer than | 12 | | 100,000 customers in Illinois. | 13 | | (i) If, after 2 years, an electric utility fails to meet | 14 | | the efficiency standard specified in subsection (b) of this | 15 | | Section, as modified by subsections (d) and (e), it shall make | 16 | | a contribution to the Low-Income Home Energy Assistance | 17 | | Program. The combined total liability for failure to meet the | 18 | | goal shall be $1,000,000, which shall be assessed as follows: a | 19 | | large electric utility shall pay $665,000, and a medium | 20 | | electric utility shall pay $335,000. If, after 3 years, an | 21 | | electric utility fails to meet the efficiency standard | 22 | | specified in subsection (b) of this Section, as modified by | 23 | | subsections (d) and (e), it shall make a contribution to the | 24 | | Low-Income Home Energy Assistance Program. The combined total | 25 | | liability for failure to meet the goal shall be $1,000,000, | 26 | | which shall be assessed as follows: a large electric utility |
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| 1 | | shall pay $665,000, and a medium electric utility shall pay | 2 | | $335,000. In addition, the responsibility for implementing the | 3 | | energy efficiency measures of the utility making the payment | 4 | | shall be transferred to the Illinois Power Agency if, after 3 | 5 | | years, or in any subsequent 3-year period, the utility fails to | 6 | | meet the efficiency standard specified in subsection (b) of | 7 | | this Section, as modified by subsections (d) and (e). The | 8 | | Agency shall implement a competitive procurement program to | 9 | | procure resources necessary to meet the standards specified in | 10 | | this Section as modified by subsections (d) and (e), with costs | 11 | | for those resources to be recovered in the same manner as | 12 | | products purchased through the procurement plan as provided in | 13 | | Section 16-111.5. The Director shall implement this | 14 | | requirement in connection with the procurement plan as provided | 15 | | in Section 16-111.5. | 16 | | For purposes of this Section, (i) a "large electric | 17 | | utility" is an electric utility that, on December 31, 2005, | 18 | | served more than 2,000,000 electric customers in Illinois; (ii) | 19 | | a "medium electric utility" is an electric utility that, on | 20 | | December 31, 2005, served 2,000,000 or fewer but more than | 21 | | 100,000 electric customers in Illinois; and (iii) Illinois | 22 | | electric utilities that are affiliated by virtue of a common | 23 | | parent company are considered a single electric utility. | 24 | | (j) If, after 3 years, or any subsequent 3-year period, the | 25 | | Department fails to implement the Department's share of energy | 26 | | efficiency measures required by the standards in subsection |
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| 1 | | (b), then the Illinois Power Agency may assume responsibility | 2 | | for and control of the Department's share of the required | 3 | | energy efficiency measures. The Agency shall implement a | 4 | | competitive procurement program to procure resources necessary | 5 | | to meet the standards specified in this Section, with the costs | 6 | | of these resources to be recovered in the same manner as | 7 | | provided for the Department in this Section.
| 8 | | (k) No electric utility shall be deemed to have failed to | 9 | | meet the energy efficiency standards to the extent any such | 10 | | failure is due to a failure of the Department or the Agency.
| 11 | | (Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; | 12 | | 96-1000, eff. 7-2-10; 97-616, eff. 10-26-11.)
| 13 | | (220 ILCS 5/8-104)
| 14 | | Sec. 8-104. Natural gas energy efficiency programs. | 15 | | (a) It is the policy of the State that natural gas | 16 | | utilities and the Department of Commerce and Economic | 17 | | Opportunity are required to use cost-effective energy | 18 | | efficiency to reduce direct and indirect costs to consumers. It | 19 | | serves the public interest to allow natural gas utilities to | 20 | | recover costs for reasonably and prudently incurred expenses | 21 | | for cost-effective energy efficiency measures. | 22 | | (b) For purposes of this Section, "energy efficiency" means | 23 | | measures that reduce the amount of energy required to achieve a | 24 | | given end use and "cost-effective" means that the measures | 25 | | satisfy the total resource cost test which, for purposes of |
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| 1 | | this Section, means a standard that is met if, for an | 2 | | investment in energy efficiency, the benefit-cost ratio is | 3 | | greater than one. The benefit-cost ratio is the ratio of the | 4 | | net present value of the total benefits of the measures to the | 5 | | net present value of the total costs as calculated over the | 6 | | lifetime of the measures. The total resource cost test compares | 7 | | the sum of avoided natural gas utility costs, representing the | 8 | | benefits that accrue to the system and the participant in the | 9 | | delivery of those efficiency measures, as well as other | 10 | | quantifiable societal benefits, including avoided electric | 11 | | utility costs, to the sum of all incremental costs of end use | 12 | | measures (including both utility and participant | 13 | | contributions), plus costs to administer, deliver, and | 14 | | evaluate each demand-side measure, to quantify the net savings | 15 | | obtained by substituting demand-side measures for supply | 16 | | resources. In calculating avoided costs, reasonable estimates | 17 | | shall be included for financial costs likely to be imposed by | 18 | | future regulation of emissions of greenhouse gases. The | 19 | | low-income programs described in item (4) of subsection (f) of | 20 | | this Section shall not be required to meet the total resource | 21 | | cost test. | 22 | | (c) Natural gas utilities shall implement cost-effective | 23 | | energy efficiency measures to meet at least the following | 24 | | natural gas savings requirements, which shall be based upon the | 25 | | total amount of gas delivered to retail customers, other than | 26 | | the customers described in subsection (m) of this Section, |
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| 1 | | during calendar year 2009 multiplied by the applicable | 2 | | percentage. Natural gas utilities may comply with this Section | 3 | | by meeting the annual incremental savings goal in the | 4 | | applicable year or by showing that total savings associated | 5 | | with measures implemented after May 31, 2011 were equal to the | 6 | | sum of each annual incremental savings requirement from May 31, | 7 | | 2011 through the end of the applicable year: | 8 | | (1) 0.2% by May 31, 2012; | 9 | | (2) an additional 0.4% by May 31, 2013, increasing | 10 | | total savings to .6%; | 11 | | (3) an additional 0.6% by May 31, 2014, increasing | 12 | | total savings to 1.2%; | 13 | | (4) an additional 0.8% by May 31, 2015, increasing | 14 | | total savings to 2.0%; | 15 | | (5) an additional 1% by May 31, 2016, increasing total | 16 | | savings to 3.0%; | 17 | | (6) an additional 1.2% by May 31, 2017, increasing | 18 | | total savings to 4.2%; | 19 | | (7) an additional 1.4% by May 31, 2018, increasing | 20 | | total savings to 5.6%; | 21 | | (8) an additional 1.5% by May 31, 2019, increasing | 22 | | total savings to 7.1%; and | 23 | | (9) an additional 1.5% in each 12-month period | 24 | | thereafter. | 25 | | (d) Notwithstanding the requirements of subsection (c) of | 26 | | this Section, a natural gas utility shall limit the amount of |
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| 1 | | energy efficiency implemented in any 3-year reporting period | 2 | | established by subsection (f) of Section 8-104 of this Act, by | 3 | | an amount necessary to limit the estimated average increase in | 4 | | the amounts paid by retail customers in connection with natural | 5 | | gas service to no more than 2% in the applicable 3-year | 6 | | reporting period. The energy savings requirements in | 7 | | subsection (c) of this Section may be reduced by the Commission | 8 | | for the subject plan, if the utility demonstrates by | 9 | | substantial evidence that it is highly unlikely that the | 10 | | requirements could be achieved without exceeding the | 11 | | applicable spending limits in any 3-year reporting period. No | 12 | | later than September 1, 2013, the Commission shall review the | 13 | | limitation on the amount of energy efficiency measures | 14 | | implemented pursuant to this Section and report to the General | 15 | | Assembly, in the report required by subsection (k) of this | 16 | | Section, its findings as to whether that limitation unduly | 17 | | constrains the procurement of energy efficiency measures. | 18 | | (e) Natural gas utilities shall be responsible for | 19 | | overseeing the design, development, and filing of their | 20 | | efficiency plans with the Commission. The utility shall utilize | 21 | | 75% of the available funding associated with energy efficiency | 22 | | programs approved by the Commission, and may outsource various | 23 | | aspects of program development and implementation. The | 24 | | remaining 25% of available funding shall be used by the | 25 | | Department of Commerce and Economic Opportunity to implement | 26 | | energy efficiency measures that achieve no less than 20% of the |
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| 1 | | requirements of subsection (c) of this Section. Such measures | 2 | | shall be designed in conjunction with the utility and approved | 3 | | by the Commission. The Department may outsource development and | 4 | | implementation of energy efficiency measures. A minimum of 10% | 5 | | of the entire portfolio of cost-effective energy efficiency | 6 | | measures shall be procured from local government, municipal | 7 | | corporations, school districts, and community college | 8 | | districts. Five percent of the entire portfolio of | 9 | | cost-effective energy efficiency measures may be granted to | 10 | | local government and municipal corporations for market | 11 | | transformation initiatives. The Department shall coordinate | 12 | | the implementation of these measures and shall integrate | 13 | | delivery of natural gas efficiency programs with electric | 14 | | efficiency programs delivered pursuant to Section 8-103 of this | 15 | | Act, unless the Department can show that integration is not | 16 | | feasible. | 17 | | The apportionment of the dollars to cover the costs to | 18 | | implement the Department's share of the portfolio of energy | 19 | | efficiency measures shall be made to the Department once the | 20 | | Department has executed rebate agreements, grants , or | 21 | | contracts for energy efficiency measures and provided | 22 | | supporting documentation for those rebate agreements, grants , | 23 | | and the contracts to the utility. The Department is authorized | 24 | | to adopt any rules necessary and prescribe procedures in order | 25 | | to ensure compliance by applicants in carrying out the purposes | 26 | | of rebate agreements for energy efficiency measures |
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| 1 | | implemented by the Department made under this Section. | 2 | | The details of the measures implemented by the Department | 3 | | shall be submitted by the Department to the Commission in | 4 | | connection with the utility's filing regarding the energy | 5 | | efficiency measures that the utility implements. | 6 | | A utility providing approved energy efficiency measures in | 7 | | this State shall be permitted to recover costs of those | 8 | | measures through an automatic adjustment clause tariff filed | 9 | | with and approved by the Commission. The tariff shall be | 10 | | established outside the context of a general rate case and | 11 | | shall be applicable to the utility's customers other than the | 12 | | customers described in subsection (m) of this Section. Each | 13 | | year the Commission shall initiate a review to reconcile any | 14 | | amounts collected with the actual costs and to determine the | 15 | | required adjustment to the annual tariff factor to match annual | 16 | | expenditures. | 17 | | Each utility shall include, in its recovery of costs, the | 18 | | costs estimated for both the utility's and the Department's | 19 | | implementation of energy efficiency measures. Costs collected | 20 | | by the utility for measures implemented by the Department shall | 21 | | be submitted to the Department pursuant to Section 605-323 of | 22 | | the Civil Administrative Code of Illinois , shall be deposited | 23 | | into the Energy Efficiency Portfolio Standards Fund, and shall | 24 | | be used by the Department solely for the purpose of | 25 | | implementing these measures. A utility shall not be required to | 26 | | advance any moneys to the Department but only to forward such |
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| 1 | | funds as it has collected. The Department shall report to the | 2 | | Commission on an annual basis regarding the costs actually | 3 | | incurred by the Department in the implementation of the | 4 | | measures. Any changes to the costs of energy efficiency | 5 | | measures as a result of plan modifications shall be | 6 | | appropriately reflected in amounts recovered by the utility and | 7 | | turned over to the Department. | 8 | | The portfolio of measures, administered by both the | 9 | | utilities and the Department, shall, in combination, be | 10 | | designed to achieve the annual energy savings requirements set | 11 | | forth in subsection (c) of this Section, as modified by | 12 | | subsection (d) of this Section. | 13 | | The utility and the Department shall agree upon a | 14 | | reasonable portfolio of measures and determine the measurable | 15 | | corresponding percentage of the savings goals associated with | 16 | | measures implemented by the Department. | 17 | | No utility shall be assessed a penalty under subsection (f) | 18 | | of this Section for failure to make a timely filing if that | 19 | | failure is the result of a lack of agreement with the | 20 | | Department with respect to the allocation of responsibilities | 21 | | or related costs or target assignments. In that case, the | 22 | | Department and the utility shall file their respective plans | 23 | | with the Commission and the Commission shall determine an | 24 | | appropriate division of measures and programs that meets the | 25 | | requirements of this Section. | 26 | | If the Department is unable to meet performance |
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| 1 | | requirements for the portion of the portfolio implemented by | 2 | | the Department, then the utility and the Department shall | 3 | | jointly submit a modified filing to the Commission explaining | 4 | | the performance shortfall and recommending an appropriate | 5 | | course going forward, including any program modifications that | 6 | | may be appropriate in light of the evaluations conducted under | 7 | | item (8) of subsection (f) of this Section. In this case, the | 8 | | utility obligation to collect the Department's costs and turn | 9 | | over those funds to the Department under this subsection (e) | 10 | | shall continue only if the Commission approves the | 11 | | modifications to the plan proposed by the Department. | 12 | | (f) No later than October 1, 2010, each gas utility shall | 13 | | file an energy efficiency plan with the Commission to meet the | 14 | | energy efficiency standards through May 31, 2014. Every 3 years | 15 | | thereafter, each utility shall file, no later than October 1, | 16 | | an energy efficiency plan with the Commission. If a utility | 17 | | does not file such a plan by October 1 of the applicable year, | 18 | | then it shall face a penalty of $100,000 per day until the plan | 19 | | is filed. Each utility's plan shall set forth the utility's | 20 | | proposals to meet the utility's portion of the energy | 21 | | efficiency standards identified in subsection (c) of this | 22 | | Section, as modified by subsection (d) of this Section, taking | 23 | | into account the unique circumstances of the utility's service | 24 | | territory. The Commission shall seek public comment on the | 25 | | utility's plan and shall issue an order approving or | 26 | | disapproving each plan. If the Commission disapproves a plan, |
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| 1 | | the Commission shall, within 30 days, describe in detail the | 2 | | reasons for the disapproval and describe a path by which the | 3 | | utility may file a revised draft of the plan to address the | 4 | | Commission's concerns satisfactorily. If the utility does not | 5 | | refile with the Commission within 60 days after the | 6 | | disapproval, the utility shall be subject to penalties at a | 7 | | rate of $100,000 per day until the plan is filed. This process | 8 | | shall continue, and penalties shall accrue, until the utility | 9 | | has successfully filed a portfolio of energy efficiency | 10 | | measures. Penalties shall be deposited into the Energy | 11 | | Efficiency Trust Fund and the cost of any such penalties may | 12 | | not be recovered from ratepayers. In submitting proposed energy | 13 | | efficiency plans and funding levels to meet the savings goals | 14 | | adopted by this Act the utility shall: | 15 | | (1) Demonstrate that its proposed energy efficiency | 16 | | measures will achieve the requirements that are identified | 17 | | in subsection (c) of this Section, as modified by | 18 | | subsection (d) of this Section. | 19 | | (2) Present specific proposals to implement new | 20 | | building and appliance standards that have been placed into | 21 | | effect. | 22 | | (3) Present estimates of the total amount paid for gas | 23 | | service expressed on a per therm basis associated with the | 24 | | proposed portfolio of measures designed to meet the | 25 | | requirements that are identified in subsection (c) of this | 26 | | Section, as modified by subsection (d) of this Section. |
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| 1 | | (4) Coordinate with the Department to present a | 2 | | portfolio of energy efficiency measures proportionate to | 3 | | the share of total annual utility revenues in Illinois from | 4 | | households at or below 150% of the poverty level. Such | 5 | | programs shall be targeted to households with incomes at or | 6 | | below 80% of area median income. | 7 | | (5) Demonstrate that its overall portfolio of energy | 8 | | efficiency measures, not including programs covered by | 9 | | item (4) of this subsection (f), are cost-effective using | 10 | | the total resource cost test and represent a diverse cross | 11 | | section of opportunities for customers of all rate classes | 12 | | to participate in the programs. | 13 | | (6) Demonstrate that a gas utility affiliated with an | 14 | | electric utility that is required to comply with Section | 15 | | 8-103 of this Act has integrated gas and electric | 16 | | efficiency measures into a single program that reduces | 17 | | program or participant costs and appropriately allocates | 18 | | costs to gas and electric ratepayers. The Department shall | 19 | | integrate all gas and electric programs it delivers in any | 20 | | such utilities' service territories, unless the Department | 21 | | can show that integration is not feasible or appropriate. | 22 | | (7) Include a proposed cost recovery tariff mechanism | 23 | | to fund the proposed energy efficiency measures and to | 24 | | ensure the recovery of the prudently and reasonably | 25 | | incurred costs of Commission-approved programs. | 26 | | (8) Provide for quarterly status reports tracking |
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| 1 | | implementation of and expenditures for the utility's | 2 | | portfolio of measures and the Department's portfolio of | 3 | | measures, an annual independent review, and a full | 4 | | independent evaluation of the 3-year results of the | 5 | | performance and the cost-effectiveness of the utility's | 6 | | and Department's portfolios of measures and broader net | 7 | | program impacts and, to the extent practical, for | 8 | | adjustment of the measures on a going forward basis as a | 9 | | result of the evaluations. The resources dedicated to | 10 | | evaluation shall not exceed 3% of portfolio resources in | 11 | | any given 3-year period. | 12 | | (g) No more than 3% of expenditures on energy efficiency | 13 | | measures may be allocated for demonstration of breakthrough | 14 | | equipment and devices. | 15 | | (h) Illinois natural gas utilities that are affiliated by | 16 | | virtue of a common parent company may, at the utilities' | 17 | | request, be considered a single natural gas utility for | 18 | | purposes of complying with this Section. | 19 | | (i) If, after 3 years, a gas utility fails to meet the | 20 | | efficiency standard specified in subsection (c) of this Section | 21 | | as modified by subsection (d), then it shall make a | 22 | | contribution to the Low-Income Home Energy Assistance Program. | 23 | | The total liability for failure to meet the goal shall be | 24 | | assessed as follows: | 25 | | (1) a large gas utility shall pay $600,000; | 26 | | (2) a medium gas utility shall pay $400,000; and |
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| 1 | | (3) a small gas utility shall pay $200,000. | 2 | | For purposes of this Section, (i) a "large gas utility" is | 3 | | a gas utility that on December 31, 2008, served more than | 4 | | 1,500,000 gas customers in Illinois; (ii) a "medium gas | 5 | | utility" is a gas utility that on December 31, 2008, served | 6 | | fewer than 1,500,000, but more than 500,000 gas customers in | 7 | | Illinois; and (iii) a "small gas utility" is a gas utility that | 8 | | on December 31, 2008, served fewer than 500,000 and more than | 9 | | 100,000 gas customers in Illinois. The costs of this | 10 | | contribution may not be recovered from ratepayers. | 11 | | If a gas utility fails to meet the efficiency standard | 12 | | specified in subsection (c) of this Section, as modified by | 13 | | subsection (d) of this Section, in any 2 consecutive 3-year | 14 | | planning periods, then the responsibility for implementing the | 15 | | utility's energy efficiency measures shall be transferred to an | 16 | | independent program administrator selected by the Commission. | 17 | | Reasonable and prudent costs incurred by the independent | 18 | | program administrator to meet the efficiency standard | 19 | | specified in subsection (c) of this Section, as modified by | 20 | | subsection (d) of this Section, may be recovered from the | 21 | | customers of the affected gas utilities, other than customers | 22 | | described in subsection (m) of this Section. The utility shall | 23 | | provide the independent program administrator with all | 24 | | information and assistance necessary to perform the program | 25 | | administrator's duties including but not limited to customer, | 26 | | account, and energy usage data, and shall allow the program |
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| 1 | | administrator to include inserts in customer bills. The utility | 2 | | may recover reasonable costs associated with any such | 3 | | assistance. | 4 | | (j) No utility shall be deemed to have failed to meet the | 5 | | energy efficiency standards to the extent any such failure is | 6 | | due to a failure of the Department. | 7 | | (k) Not later than January 1, 2012, the Commission shall | 8 | | develop and solicit public comment on a plan to foster | 9 | | statewide coordination and consistency between statutorily | 10 | | mandated natural gas and electric energy efficiency programs to | 11 | | reduce program or participant costs or to improve program | 12 | | performance. Not later than September 1, 2013, the Commission | 13 | | shall issue a report to the General Assembly containing its | 14 | | findings and recommendations. | 15 | | (l) This Section does not apply to a gas utility that on | 16 | | January 1, 2009, provided gas service to fewer than 100,000 | 17 | | customers in Illinois. | 18 | | (m) Subsections (a) through (k) of this Section do not | 19 | | apply to customers of a natural gas utility that have a North | 20 | | American Industry Classification System code number that is | 21 | | 22111 or any such code number beginning with the digits 31, 32, | 22 | | or 33 and (i) annual usage in the aggregate of 4 million therms | 23 | | or more within the service territory of the affected gas | 24 | | utility or with aggregate usage of 8 million therms or more in | 25 | | this State and complying with the provisions of item (l) of | 26 | | this subsection (m); or (ii) using natural gas as feedstock and |
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| 1 | | meeting the usage requirements described in item (i) of this | 2 | | subsection (m), to the extent such annual feedstock usage is | 3 | | greater than that 60% of the customer's total annual usage of | 4 | | natural gas. | 5 | | (1) Customers described in this subsection (m) of this | 6 | | Section shall apply, on a form approved on or before | 7 | | October 1, 2009 by the Department, to the Department to be | 8 | | designated as a self-directing customer ("SDC") or as an | 9 | | exempt customer using natural gas as a feedstock from which | 10 | | other products are made, including, but not limited to, | 11 | | feedstock for a hydrogen plant, on or before the 1st day of | 12 | | February, 2010. Thereafter, application may be made not | 13 | | less than 6 months before the filing date of the gas | 14 | | utility energy efficiency plan described in subsection (f) | 15 | | of this Section; however, a new customer that commences | 16 | | taking service from a natural gas utility after February 1, | 17 | | 2010 may apply to become a SDC or exempt customer up to 30 | 18 | | days after beginning service. Such application shall | 19 | | contain the following: | 20 | | (A) the customer's certification that, at the time | 21 | | of its application, it qualifies to be a SDC or exempt | 22 | | customer described in this subsection (m) of this | 23 | | Section; | 24 | | (B) in the case of a SDC, the customer's | 25 | | certification that it has established or will | 26 | | establish by the beginning of the utility's 3-year |
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| 1 | | planning period commencing subsequent to the | 2 | | application, and will maintain for accounting | 3 | | purposes, an energy efficiency reserve account and | 4 | | that the customer will accrue funds in said account to | 5 | | be held for the purpose of funding, in whole or in | 6 | | part, energy efficiency measures of the customer's | 7 | | choosing, which may include, but are not limited to, | 8 | | projects involving combined heat and power systems | 9 | | that use the same energy source both for the generation | 10 | | of electrical or mechanical power and the production of | 11 | | steam or another form of useful thermal energy or the | 12 | | use of combustible gas produced from biomass, or both; | 13 | | (C) in the case of a SDC, the customer's | 14 | | certification that annual funding levels for the | 15 | | energy efficiency reserve account will be equal to 2% | 16 | | of the customer's cost of natural gas, composed of the | 17 | | customer's commodity cost and the delivery service | 18 | | charges paid to the gas utility, or $150,000, whichever | 19 | | is less; | 20 | | (D) in the case of a SDC, the customer's | 21 | | certification that the required reserve account | 22 | | balance will be capped at 3 years' worth of accruals | 23 | | and that the customer may, at its option, make further | 24 | | deposits to the account to the extent such deposit | 25 | | would increase the reserve account balance above the | 26 | | designated cap level; |
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| 1 | | (E) in the case of a SDC, the customer's | 2 | | certification that by October 1 of each year, beginning | 3 | | no sooner than October 1, 2012, the customer will | 4 | | report to the Department information, for the 12-month | 5 | | period ending May 31 of the same year, on all deposits | 6 | | and reductions, if any, to the reserve account during | 7 | | the reporting year, and to the extent deposits to the | 8 | | reserve account in any year are in an amount less than | 9 | | $150,000, the basis for such reduced deposits; reserve | 10 | | account balances by month; a description of energy | 11 | | efficiency measures undertaken by the customer and | 12 | | paid for in whole or in part with funds from the | 13 | | reserve account; an estimate of the energy saved, or to | 14 | | be saved, by the measure; and that the report shall | 15 | | include a verification by an officer or plant manager | 16 | | of the customer or by a registered professional | 17 | | engineer or certified energy efficiency trade | 18 | | professional that the funds withdrawn from the reserve | 19 | | account were used for the energy efficiency measures; | 20 | | (F) in the case of an exempt customer, the | 21 | | customer's certification of the level of gas usage as | 22 | | feedstock in the customer's operation in a typical year | 23 | | and that it will provide information establishing this | 24 | | level, upon request of the Department; | 25 | | (G) in the case of either an exempt customer or a | 26 | | SDC, the customer's certification that it has provided |
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| 1 | | the gas utility or utilities serving the customer with | 2 | | a copy of the application as filed with the Department; | 3 | | (H) in the case of either an exempt customer or a | 4 | | SDC, certification of the natural gas utility or | 5 | | utilities serving the customer in Illinois including | 6 | | the natural gas utility accounts that are the subject | 7 | | of the application; and | 8 | | (I) in the case of either an exempt customer or a | 9 | | SDC, a verification signed by a plant manager or an | 10 | | authorized corporate officer attesting to the | 11 | | truthfulness and accuracy of the information contained | 12 | | in the application. | 13 | | (2) The Department shall review the application to | 14 | | determine that it contains the information described in | 15 | | provisions (A) through (I) of item (1) of this subsection | 16 | | (m), as applicable. The review shall be completed within 30 | 17 | | days after the date the application is filed with the | 18 | | Department. Absent a determination by the Department | 19 | | within the 30-day period, the applicant shall be considered | 20 | | to be a SDC or exempt customer, as applicable, for all | 21 | | subsequent 3-year planning periods, as of the date of | 22 | | filing the application described in this subsection (m). If | 23 | | the Department determines that the application does not | 24 | | contain the applicable information described in provisions | 25 | | (A) through (I) of item (1) of this subsection (m), it | 26 | | shall notify the customer, in writing, of its determination |
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| 1 | | that the application does not contain the required | 2 | | information and identify the information that is missing, | 3 | | and the customer shall provide the missing information | 4 | | within 15 working days after the date of receipt of the | 5 | | Department's notification. | 6 | | (3) The Department shall have the right to audit the | 7 | | information provided in the customer's application and | 8 | | annual reports to ensure continued compliance with the | 9 | | requirements of this subsection. Based on the audit, if the | 10 | | Department determines the customer is no longer in | 11 | | compliance with the requirements of items (A) through (I) | 12 | | of item (1) of this subsection (m), as applicable, the | 13 | | Department shall notify the customer in writing of the | 14 | | noncompliance. The customer shall have 30 days to establish | 15 | | its compliance, and failing to do so, may have its status | 16 | | as a SDC or exempt customer revoked by the Department. The | 17 | | Department shall treat all information provided by any | 18 | | customer seeking SDC status or exemption from the | 19 | | provisions of this Section as strictly confidential. | 20 | | (4) Upon request, or on its own motion, the Commission | 21 | | may open an investigation, no more than once every 3 years | 22 | | and not before October 1, 2014, to evaluate the | 23 | | effectiveness of the self-directing program described in | 24 | | this subsection (m). | 25 | | (n) The applicability of this Section to customers | 26 | | described in subsection (m) of this Section is conditioned on |
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| 1 | | the existence of the SDC program. In no event will any | 2 | | provision of this Section apply to such customers after January | 3 | | 1, 2020.
| 4 | | (Source: P.A. 96-33, eff. 7-10-09; revised 11-18-11.)
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.
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