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90_SB1265sam001 SRS90SB1265JJcham03 1 AMENDMENT TO SENATE BILL 1265 2 AMENDMENT NO. . Amend Senate Bill 1265 by replacing 3 the title with: 4 "AN ACT concerning energy."; and 5 by replacing everything after the enacting clause with the 6 following: 7 "Section 5. The Renewable Energy, Energy Efficiency, and 8 Coal Resources Development Law of 1997 is amended by changing 9 Sections 6-5 and 6-6 as follows: 10 (20 ILCS 687/6-5) 11 (Section scheduled to be repealed on December 16, 2007) 12 Sec. 6-5. Renewable Energy Resources and Coal Technology 13 Development Assistance Charge. 14 (a) Beginning January 1, 1998, the following charges 15 shall be imposed: 16 (1) $0.05 per month on each account for residential 17 electric service as defined in Section 13 of the Energy 18 Assistance Act of 1989; 19 (2) $0.05 per month on each account for residential 20 gas service as defined in Section 13 of the Energy 21 Assistance Act of 1989; -2- SRS90SB1265JJcham03 1 (3) $0.50 per month on each account for 2 nonresidential electric service, as defined in Section 13 3 of the Energy Assistance Act of 1989, taking less than 10 4 megawatts of peak demand during the previous calendar 5 year; 6 (4) $0.50 per month on each account for 7 nonresidential gas service, as defined in Section 13 of 8 the Energy Assistance Act of 1989, taking less than 9 4,000,000 therms of gas during the previous calendar 10 year; 11 (5) $37.50 per month on each account for 12 nonresidential electric service, as defined in Section 13 13 of the Energy Assistance Act of 1989, taking 10 megawatts 14 or greater of peak demand during the previous calendar 15 year; and 16 (6) $37.50 per month on each account for 17 nonresidential gas service, as defined in Section 13 of 18 the Energy Assistance Act of 1989, taking 4,000,000 or 19 more therms of gas during the previous calendar year. 20 (b) Except as provided in subsection (e) of this 21 Section, this charge is to be collected by electric and gas 22 utilities, whether owned by investors, municipalities or 23 cooperatives, and alternative retail electric suppliers on a 24 monthly basis from their respective customers. 25 (c) Fifty percent of the moneys collected pursuant to 26 this Section shall be deposited in the Renewable Energy 27 Resources Trust Fund. The remaining 50 percent of the moneys 28 collected pursuant to this Section shall be deposited in the 29 Coal Technology Development Assistance Fund for use under the 30 Illinois Coal Technology Development Assistance Act. 31 (d) On a monthly basis, each utility and alternative 32 retail electric supplier collecting charges pursuant to this 33 Section shall remit to the Department of Revenue for deposit 34 in the Renewable Energy Resources Trust Fund and the Coal -3- SRS90SB1265JJcham03 1 Technology Development Assistance Fund all moneys received as 2 payment of the charge provided for in this Section. 3 (e) The charges imposed by this Section shall only apply 4 to customers of municipal electric and gas utilities and 5 electric cooperatives if the municipal electric or gas 6 utility or electric cooperative makes an affirmative decision 7 to impose the charge. If a municipal electric or gas utility 8 or electric cooperative does not assess this charge, its 9 customers shall not be eligible for the Renewable Energy 10 Resources Program. 11 (Source: P.A. 90-561, eff. 12-16-97.) 12 (20 ILCS 687/6-6) 13 (Section scheduled to be repealed on December 16, 2007) 14 Sec. 6-6. Energy efficiency program. 15 (a) For the year beginning January 1, 1998, and 16 thereafter as provided in this Section, each electric utility 17 and each alternative retail electric supplier supplying 18 electric power and energy to retail customers located in the 19 State of Illinois shall contribute annually to the Department 20 a pro rata share of a total amount of $3,000,000 based upon 21 the number of kilowatt-hours sold by each such entity in the 22 12 months preceding the year of contribution. These 23 contributions shall be remitted to the Department of Revenue 24 on or before June 30 of each year the contribution is due. 25 The funds receivedby the Departmentpursuant to this Section 26 shall be subject to the appropriation of funds by the General 27 Assembly. The Department of Revenue shall place the funds 28 remitted under this Section in a trust fund, that is hereby 29 created in the State Treasury, called the Energy Efficiency 30 Trust Fund. 31 (b) The Department of Commerce and Community Affairs 32 shall disburse the moneys in the Energy Efficiency Trust Fund 33 to residential electric customers to fund projects which the -4- SRS90SB1265JJcham03 1 Department has determined will promote energy efficiency in 2 the State of Illinois. The Department shall establish a list 3 of projects eligible for grants from the Energy Efficiency 4 Trust Fund including, but not limited to, supporting energy 5 efficiency efforts for low-income households, replacing 6 energy inefficient windows with more efficient windows, 7 replacing energy inefficient appliances with more efficient 8 appliances, replacing energy inefficient lighting with more 9 efficient lighting, insulating dwellings and buildings, and 10 such other projects which will increase energy efficiency in 11 homes and rental properties. 12 (c) The Department shall establish criteria and an 13 application process for this grant program. 14 (d) The Department shall conduct a study of other 15 possible energy efficiency improvements and evaluate methods 16 for promoting energy efficiency and conservation, especially 17 for the benefit of low-income customers. 18 (e) The Department shall submit an annual report to the 19 General Assembly evaluating the effectiveness of the projects 20 and programs provided in this Section, and recommending 21 further legislation which will encourage additional 22 development and implementation of energy efficiency projects 23 and programs in Illinois and other actions that help to meet 24 the goals of this Section. 25 (Source: P.A. 90-561, eff. 12-16-97.) 26 Section 10. The Illinois Coal Technology Development 27 Assistance Act is amended by changing Section 3 as follows: 28 (30 ILCS 730/3) (from Ch. 96 1/2, par. 8203) 29 Sec. 3. Transfers to Coal Technology Development 30 Assistance Funds. As soon as may be practicable after the 31 first day of each month, the Department of Revenue shall 32 certify to the Treasurer an amount equal to 1/64 of the -5- SRS90SB1265JJcham03 1 revenue realized from the tax imposed by the Electricity 2 Excise Tax Law, Section 2 of the Public Utilities Revenue 3 Act, Section 2 of the Messages Tax Act, and Section 2 of the 4 Gas Revenue Tax Act, during the preceding month. Upon 5 receipt of the certification, the Treasurer shall transfer 6 the amount shown on such certification from the General 7 Revenue Fund to the Coal Technology Development Assistance 8 Fund, which is hereby created as a special fund in the State 9 treasury, except that no transfer shall be made in any month 10 in which the Fundfrom moneys received under this Sectionhas 11 reached the following balance: 12 (1) $7,000,000 during fiscal year 1994. 13 (2) $8,500,000 during fiscal year 1995. 14 (3) $10,000,000 during fiscal yearsyear1996 and 15 1997. 16 (4) During fiscal year 1998 and each year 17 thereafter, an amount equal to the sum of $10,000,000 18 plus additional moneys deposited into the Coal Technology 19 Development Assistance Fund from the Renewable Energy 20 Resources and Coal Technology Development Assistance 21 Charge under Section 6.5 of the Renewable Energy, Energy 22 Efficiency, and Coal Resources Development Law of 1997. 23 (Source: P.A. 90-561, eff. 12-16-97.) 24 Section 15. The Energy Assistance Act of 1989 is amended 25 by changing Sections 13 and 14 as follows: 26 (305 ILCS 20/13) 27 Sec. 13. Supplemental Low-Income Energy Assistance Fund. 28 (a) The Supplemental Low-Income Energy Assistance Fund 29 is hereby created as a special fund in the State Treasury. 30 The Supplemental Low-Income Energy Assistance Fund is 31 authorized to receive, by statutory deposit, the moneys 32 collected pursuant to this Section. Subject to -6- SRS90SB1265JJcham03 1 appropriation, the Department shall use moneys from the 2 Supplemental Low-Income Energy Assistance Fund for payments 3 to electric or gas public utilities, municipal electric or 4 gas utilities, and electric cooperatives on behalf of their 5 customers who are participants in the program authorized by 6 Section 4 of this Act, for the provision of weatherization 7 services and for administration of the Supplemental 8 Low-Income Energy Assistance Fund. The yearly expenditures 9 for weatherization may not exceed 10% of the amount collected 10 during the year pursuant to this Section. In determining 11 which customers will participate in the weatherization 12 component, the Department shall target weatherization for 13 those customers with the greatest energy burden, that is the 14 lowest income and greatest utility bills. The yearly 15 administrative expenses of the Supplemental Low-Income Energy 16 Assistance Fund may not exceed 10% of the amount collected 17 during that year pursuant to this Section. 18 (b) Notwithstanding the provisions of Section 16-111 of 19 the Public Utilities Act, each public utility, electric 20 cooperative, as defined in Section 3.4 of the Electric 21 Supplier Act, and municipal utility, as referenced in Section 22 3-105 of the Public Utilities Act, that is engaged in the 23 delivery of electricity or the distribution of natural gas 24 within the State of Illinois shall, effective January 1, 25 1998, assess each of its customer accounts a monthly Energy 26 Assistance Charge for the Supplemental Low-Income Energy 27 Assistance Fund. The monthly charge shall be as follows: 28 (1) $0.40 per month on each account for residential 29 electric service; 30 (2) $0.40 per month on each account for residential 31 gas service; 32 (3) $4 per month on each account for 33 non-residential electric service which had less than 10 34 megawatts of peak demand during the previous calendar -7- SRS90SB1265JJcham03 1 year; 2 (4) $4 per month on each account for 3 non-residential gas service which had distributed to it 4 less than 4,000,000 therms of gas during the previous 5 calendar year; 6 (5) $300 per month on each account for 7 non-residential electric service which had 10 megawatts 8 or greater of peak demand during the previous calendar 9 year; and 10 (6) $300 per month on each account for 11 non-residential gas service which had 4,000,000 or more 12 therms of gas distributed to it during the previous 13 calendar year. 14 (c) For purposes of this Section: 15 (1) "residential electric service" means electric 16 utility service for household purposes delivered to a 17 dwelling of 2 or fewer units which is billed under a 18 residential rate, or electric utility service for 19 household purposes delivered to a dwelling unit or units 20 which is billed under a residential rate and is 21 registered by a separate meter for each dwelling unit; 22 (2) "residential gas service" means gas utility 23 service for household purposes distributed to a dwelling 24 of 2 or fewer units which is billed under a residential 25 rate, or gas utility service for household purposes 26 distributed to a dwelling unit or units which is billed 27 under a residential rate and is registered by a separate 28 meter for each dwelling unit; 29 (3) "non-residential electric service" means 30 electric utility service which is not residential 31 electric service; and 32 (4) "non-residential gas service" means gas utility 33 service which is not residential gas service. 34 (d) At least 45 days prior to the date on which it must -8- SRS90SB1265JJcham03 1 begin assessing Energy Assistance Charges, each public 2 utility engaged in the delivery of electricity or the 3 distribution of natural gas shall file with the Illinois 4 Commerce Commission tariffs incorporating the Energy 5 Assistance Charge in other charges stated in such tariffs. 6 (e) The Energy Assistance Charge assessed by electric 7 and gas public utilities shall be considered a charge for 8 public utility service. 9 (f) On a monthly basis, each public utility, municipal 10 utility, and electric cooperative shall remit to the 11 Department of Revenue all moneys received as payment of the 12 Energy Assistance Charge. If a customer makes a partial 13 payment, a public utility, municipal utility, or electric 14 cooperative may elect either: (i) to apply such partial 15 payments first to amounts owed to the utility or cooperative 16 for its services and then to payment for the Energy 17 Assistance Charge or (ii) to apply such partial payments on a 18 pro-rata basis between amounts owed to the utility or 19 cooperative for its services and to payment for the Energy 20 Assistance Charge. 21 (g) The Department of Revenue shall deposit into the 22 Supplemental Low-Income Energy Assistance Fund all moneys 23 remitted to it in accordance with subsection (f) of this 24 Section. 25 (h) If as of June 30December 31, 2002 the program 26 authorized by Section 4 of this Act has not been replaced by 27 a new energy assistance program which is in operation, then 28 the General Assembly shall review the program; provided 29 however, that after that date, any public utility, municipal 30 utility, or electric cooperative shall continue to assess an 31 Energy Assistance Charge which was originally assessed on or 32 before June 30December 31, 2002 and which remains unpaid. 33 On or before December 31, 20022003, the Department shall 34 prepare a report for the General Assembly on the expenditure -9- SRS90SB1265JJcham03 1 of funds appropriated from the Low-Income Energy Assistance 2 Block Grant Fund for the program authorized under Section 4 3 of this Act. 4 (i) The Department of Revenue may establish such rules 5 as it deems necessary to implement this Section. 6 (j) The Department of Commerce and Community Affairs may 7 establish such rules as it deems necessary to implement this 8 Section. 9 (k) The charges imposed by this Section shall only apply 10 to customers of municipalelectricutilities and electric 11 cooperatives if the municipalelectricutility or electric 12 cooperative makes an affirmative decision to impose the 13 charge. If a municipalelectricutility or electric 14 cooperative does not assess this charge, the Department may 15 not use funds from the Supplemental Low-Income Energy 16 Assistance Fund to provide benefits to its customers under 17 the program authorized by Section 4 of this Act. 18 (Source: P.A. 90-561, eff. 12-16-97.) 19 (305 ILCS 20/14) 20 Sec. 14. Energy Assistance Program Design Group. 21 (a) This Section establishes an Energy Assistance 22 Program Design Group to advise the General Assembly with 23 respect to designing a low-income energy assistance program 24 for the period beginning on July 1, 2002January 1, 2003. 25 (b) The Energy Assistance Program Design Group shall be 26 chaired by the Director of Commerce and Community Affairs or 27 his or her designee. There shall be 4 legislative members and 28 13 non-legislative members of the Energy Assistance Program 29 Design Group. The 4 legislative members shall be appointed as 30 follows: one member of the House appointed by the Speaker of 31 the House, one member of the House appointed by the Minority 32 Leader of the House, one member of the Senate appointed by 33 the President of the Senate, and one member of the Senate -10- SRS90SB1265JJcham03 1 appointed by the Minority Leader of the Senate. The 2 non-legislative members of the Energy Assistance Program 3 Design Group shall include the chairperson and the following 4 12 members: (i) one member designated by the Illinois 5 Commerce Commission; (ii) one member designated by the 6 Illinois Department of Natural Resources; (iii) one member 7 designated by the Illinois Energy Association to represent 8 electric public utilities serving in excess of 1 million 9 customers in this State; (iv) one member agreed upon by gas 10 public utilities that serve more than 500,000 customers in 11 this State; (v) one member designated by the Illinois Energy 12 Association to represent combination gas and electric public 13 utilities; (vi) one member agreed upon by the Illinois 14 Municipal Electric Agency and the Association of Illinois 15 Electric Co-operatives; (vii) one member designated by the 16 Midwest Independent Power Suppliers Coordination Group; 17 (viii) one member designated by the National Training and 18 Information Center to represent low income energy consumers; 19 (ix) one member designated by the Illinois Community Action 20 Association to represent local agencies that assist in the 21 administration of this Act; (x) one member designated by the 22 Citizens Utility Board to represent residential energy 23 consumers; (xi) one member designated by the Illinois Retail 24 Merchants Association to represent commercial energy 25 customers; and (xii) one member designated by the Illinois 26 Industrial Energy Consumers. The appointments of the 27 legislative members shall be submitted to the chairman of the 28 Energy Assistance Program Design Group within 30 days of the 29 effective date of this amendatory Act of 1998 and within 30 30 days of a new General Assembly convening. The names of the 31 non-legislative members shall be submitted to the chairperson 32 of the Energy Assistance Program Design Group by the 33 designating organization within 30 days of the effective date 34 of this amendatory Act of 1998. The designating organization -11- SRS90SB1265JJcham03 1 shall notify the chairperson of any changes or substitutions 2 of a designee within 10 business days of the change or 3 substitution.As promptly as practicable following the4enactment of this amendatory Act of 1997, the General5Assembly, or a Joint Committee thereof, shall establish an6Energy Assistance Program Design Group. The Energy7Assistance Program Design Group shall be chaired by the8Director of the Department of Commerce and Community Affairs9and shall include one representative of each of the10following: (i) the Illinois Commerce Commission; (ii) the11Department of Natural Resources; (iii) electric public12utilities; (iv) gas public utilities; (v) combination gas and13electric public utilities; (vi) municipal utilities and14electric cooperatives; (vii) electricity and natural gas15marketers; (viii) low-income energy customers; (ix) local16agencies engaged by the Department of Commerce and Community17Affairs to assist in the administration of the Energy18Assistance Act of 1989; (x) residential energy customers;19(xi) commercial energy customers; and (xii) industrial energy20customers. 21 (c) Within 3 months of its establishment, the Energy 22 Assistance Program Design Group shall meet to begin 23 consideration of the design and implementation of an energy 24 assistance program in Illinois for the period beginning on 25 July 1, 2002January 1, 2003. Within 12 months of its 26 establishment, the Program Design Group shall hold public 27 hearings to assist its deliberations. 28 (d) The Program Design Group shall provide a report 29 containing its recommendations to the General Assembly on or 30 before January 1, 20012002. This report must include the 31 following: 32 (1) recommendations on the definition of an 33 eligible low-income residential customer; 34 (2) recommendations regarding the continuation of -12- SRS90SB1265JJcham03 1 the program authorized by Section 4 of this Act and the 2 Supplemental Low-Income Energy Assistance Fund; 3 (3) recommendations on ensuring low-income 4 residential customers have access to essential energy 5 services; 6 (4) recommendations on addressing past due amounts 7 owed to utilities by low-income persons in Illinois; 8 (5) demographic and other information (including 9 household consumption information) necessary to determine 10 the total number of customers eligible for assistance, 11 the total number of customers likely to apply for 12 assistance, and funding estimates for any recommended 13 program; 14 (6) recommendations on appropriate measures to 15 encourage energy conservation, efficiency, and 16 responsibility among low-income residential customers; 17 (7) any recommended changes to existing 18 legislation; and 19 (8) an estimate of the cost of implementing the 20 Program Design Group's recommendations. 21 (e) The recommendations adopted by the Program Design 22 Group shall be competitively neutral in their impact on 23 providers in the energy market and shall spread program costs 24 across the broadest possible base. 25 (f) The Department of Commerce and Community Affairs 26 shall hold public hearings on the recommendations of the 27 Energy Assistance Program Design Group during calendar year 28 20012002. 29 (Source: P.A. 90-561, eff. 12-16-97.) 30 Section 99. Effective date. This Act takes effect upon 31 becoming law.".