Public Act 098-0586 Public Act 0586 98TH GENERAL ASSEMBLY |
Public Act 098-0586 | SB2350 Enrolled | LRB098 10156 CEL 40315 b |
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| AN ACT concerning regulation.
| Be it enacted by the People of the State of Illinois, | represented in the General Assembly:
| Section 5. The Public Utilities Act is amended by changing | Sections 16-111.7 and 19-140 as follows: | (220 ILCS 5/16-111.7)
| Sec. 16-111.7. On-bill financing program; electric | utilities. | (a) The Illinois General Assembly finds that Illinois homes | and businesses have the potential to save energy through | conservation and cost-effective energy efficiency measures. | Programs created pursuant to this Section will allow utility | customers to purchase cost-effective energy efficiency | measures, including measures set forth in a | Commission-approved energy efficiency and demand-response plan | under Section 8-103 of this Act and that are cost-effective as | that term is defined by that Section , with no required initial | upfront payment, and to pay the cost of those products and | services over time on their utility bill. | (b) Notwithstanding any other provision of this Act, an | electric utility serving more than 100,000 customers on January | 1, 2009 shall offer a Commission-approved on-bill financing | program ("program") that allows its eligible retail customers, |
| as that term is defined in Section 16-111.5 of this Act, who | own a residential single family home, duplex, or other | residential building with 4 or less units, or condominium at | which the electric service is being provided (i) to borrow | funds from a third party lender in order to purchase electric | energy efficiency measures approved under the program for | installation in such home or condominium without any required | upfront payment and (ii) to pay back such funds over time | through the electric utility's bill. Based upon the process | described in subsection (b-5) of this Section, small commercial | retail customers , as that term is defined in Section 16-102 of | this Act, who own the premises at which electric service is | being provided may be included in such program. After receiving | a request from an electric utility for approval of a proposed | program and tariffs pursuant to this Section, the Commission | shall render its decision within 120 days. If no decision is | rendered within 120 days, then the request shall be deemed to | be approved. | Beginning no later than December 31, 2013, an electric | utility subject to this subsection (b) shall also offer its | program to eligible retail customers that own multifamily | residential or mixed-use buildings with no more than 50 | residential units, provided, however, that such customers must | either be a residential customer or small commercial customer | and may not use the program in such a way that repayment of the | cost of energy efficiency measures is made through tenants' |
| utility bills. An electric utility may impose a per site loan | limit not to exceed $150,000. The program, and loans issued | thereunder, shall only be offered to customers of the utility | that meet the requirements of this Section and that also have | an electric service account at the premises where the energy | efficiency measures being financed shall be installed. | For purposes of this Section, "small commercial customer" | means, for an electric utility serving more than 3,000,000 | retail customers, those customers having peak demand of less | than 100 kilowatts, and, for an electric utility serving less | than 3,000,000 retail customers, those customers having peak | demand of less than 150 kilowatts; provided, however, that in | the event the Commission, after the effective date of this | amendatory Act of the 98th General Assembly, approves changes | to a utility's tariffs that reflects new or revised demand | criteria for the utility's customer rate classifications, then | the utility may file a petition with the Commission to revise | the applicable definition of a small commercial customer to | reflect the new or revised demand criteria for the purposes of | this Section. After notice and hearing, the Commission shall | enter an order approving, or approving with modification, the | revised definition within 60 days after the utility files the | petition. | (b-5) Within 30 days after the effective date of this | amendatory Act of the 96th General Assembly, the Commission | shall convene a workshop process during which interested |
| participants may discuss issues related to the program, | including program design, eligible electric energy efficiency | measures, vendor qualifications, and a methodology for | ensuring ongoing compliance with such qualifications, | financing, sample documents such as request for proposals, | contracts and agreements, dispute resolution, pre-installment | and post-installment verification, and evaluation. The | workshop process shall be completed within 150 days after the | effective date of this amendatory Act of the 96th General | Assembly. | (c) Not later than 60 days following completion of the | workshop process described in subsection (b-5) of this Section, | each electric utility subject to subsection (b) of this Section | shall submit a proposed program to the Commission that contains | the following components: | (1) A list of recommended electric energy efficiency | measures that will be eligible for on-bill financing. An | eligible electric energy efficiency measure ("measure") | shall be a product or service for which one or more of the | following is true defined by the following : | (A) (blank); the measure would be applied to or | replace electric energy-using equipment; and either | (B) the projected application of the measure to | equipment and systems will have estimated electricity | savings (determined by rates in effect at the time of | purchase) , that are sufficient to cover the costs of |
| implementing the measures, including finance charges | and any program fees not recovered pursuant to | subsection (f) of this Section ; to assist the electric | utility in identifying or approving measures, the | utility may consult with the Department of Commerce and | Economic Opportunity, as well as with retailers, | technicians, and installers of electric energy | efficiency measures and energy auditors (collectively | "vendors") ; or | (C) the product or service measure is included in a | Commission-approved energy efficiency and | demand-response plan under Section 8-103 of this Act | and is cost-effective as that term is defined by that | Section . | (2) The electric utility shall issue a request for | proposals ("RFP") to lenders for purposes of providing | financing to participants to pay for approved measures. The | RFP criteria shall include, but not be limited to, the | interest rate, origination fees, and credit terms. The | utility shall select the winning bidders based on its | evaluation of these criteria, with a preference for those | bids containing the rates, fees, and terms most favorable | to participants; | (3) The utility shall work with the lenders selected | pursuant to the RFP process, and with vendors, to establish | the terms and processes pursuant to which a participant can |
| purchase eligible electric energy efficiency measures | using the financing obtained from the lender. The vendor | shall explain and offer the approved financing packaging to | those customers identified in subsection (b) of this | Section and shall assist customers in applying for | financing. As part of the process, vendors shall also | provide to participants information about any other | incentives that may be available for the measures. | (4) The lender shall conduct credit checks or undertake | other appropriate measures to limit credit risk, and shall | review and approve or deny financing applications | submitted by customers identified in subsection (b) of this | Section. Following the lender's approval of financing and | the participant's purchase of the measure or measures, the | lender shall forward payment information to the electric | utility, and the utility shall add as a separate line item | on the participant's utility bill a charge showing the | amount due under the program each month. | (5) A loan issued to a participant pursuant to the | program shall be the sole responsibility of the | participant, and any dispute that may arise concerning the | loan's terms, conditions, or charges shall be resolved | between the participant and lender. Upon transfer of the | property title for the premises at which the participant | receives electric service from the utility or the | participant's request to terminate service at such |
| premises, the participant shall pay in full its electric | utility bill, including all amounts due under the program, | provided that this obligation may be modified as provided | in subsection (g) of this Section. Amounts due under the | program shall be deemed amounts owed for residential and, | as appropriate, small commercial electric service. | (6) The electric utility shall remit payment in full to | the lender each month on behalf of the participant. In the | event a participant defaults on payment of its electric | utility bill, the electric utility shall continue to remit | all payments due under the program to the lender, and the | utility shall be entitled to recover all costs related to a | participant's nonpayment through the automatic adjustment | clause tariff established pursuant to Section 16-111.8 of | this Act. In addition, the electric utility shall retain a | security interest in the measure or measures purchased | under the program, and the utility retains its right to | disconnect a participant that defaults on the payment of | its utility bill. | (7) The total outstanding amount financed under the | program in this subsection and subsection (c-5) of this | Section program shall not exceed $2.5 million for an | electric utility or electric utilities under a single | holding company, provided that the electric utility or | electric utilities may petition the Commission for an | increase in such amount. |
| (c-5) Within 120 days after the effective date of this | amendatory Act of the 98th General Assembly, each electric | utility subject to the requirements of this Section shall | submit an informational filing to the Commission that describes | its plan for implementing the provisions of this amendatory Act | of the 98th General Assembly on or before December 31, 2013. | Such filing shall also describe how the electric utility shall | coordinate its program with any gas utility or utilities that | provide gas service to buildings within the electric utility's | service territory so that it is practical and feasible for the | owner of a multifamily building to make a single application to | access loans for both gas and electric energy efficiency | measures in any individual building. | (d) A program approved by the Commission shall also include | the following criteria and guidelines for such program: | (1) guidelines for financing of measures installed | under a program, including, but not limited to, RFP | criteria and limits on both individual loan amounts and the | duration of the loans; | (2) criteria and standards for identifying and | approving measures; | (3) qualifications of vendors that will market or | install measures, as well as a methodology for ensuring | ongoing compliance with such qualifications; | (4) sample contracts and agreements necessary to | implement the measures and program; and |
| (5) the types of data and information that utilities | and vendors participating in the program shall collect for | purposes of preparing the reports required under | subsection (g) of this Section. | (e) The proposed program submitted by each electric utility | shall be consistent with the provisions of this Section that | define operational, financial and billing arrangements between | and among program participants, vendors, lenders, and the | electric utility. | (f) An electric utility shall recover all of the prudently | incurred costs of offering a program approved by the Commission | pursuant to this Section, including, but not limited to, all | start-up and administrative costs and the costs for program | evaluation. All prudently incurred costs under this Section | shall be recovered from the residential and small commercial | retail customer classes eligible to participate in the program | through the automatic adjustment clause tariff established | pursuant to Section 8-103 of this Act. | (g) An independent evaluation of a program shall be | conducted after 3 years of the program's operation. The | electric utility shall retain an independent evaluator who | shall evaluate the effects of the measures installed under the | program and the overall operation of the program, including , | but not limited to , customer eligibility criteria and whether | the payment obligation for permanent electric energy | efficiency measures that will continue to provide benefits of |
| energy savings should attach to the meter location. As part of | the evaluation process, the evaluator shall also solicit | feedback from participants and interested stakeholders. The | evaluator shall issue a report to the Commission on its | findings no later than 4 years after the date on which the | program commenced, and the Commission shall issue a report to | the Governor and General Assembly including a summary of the | information described in this Section as well as its | recommendations as to whether the program should be | discontinued, continued with modification or modifications or | continued without modification, provided that any recommended | modifications shall only apply prospectively and to measures | not yet installed or financed. | (h) An electric utility offering a Commission-approved | program pursuant to this Section shall not be required to | comply with any other statute, order, rule, or regulation of | this State that may relate to the offering of such program, | provided that nothing in this Section is intended to limit the | electric utility's obligation to comply with this Act and the | Commission's orders, rules, and regulations, including Part | 280 of Title 83 of the Illinois Administrative Code. | (i) The source of a utility customer's electric supply | shall not disqualify a customer from participation in the | utility's on-bill financing program. Customers of alternative | retail electric suppliers may participate in the program under | the same terms and conditions applicable to the utility's |
| supply customers.
| (Source: P.A. 96-33, eff. 7-10-09; 97-616, eff. 10-26-11.) | (220 ILCS 5/19-140)
| Sec. 19-140. On-bill financing program; gas utilities. | (a) The Illinois General Assembly finds that Illinois homes | and businesses have the potential to save energy through | conservation and cost-effective energy efficiency measures. | Programs created pursuant to this Section will allow utility | customers to purchase cost-effective energy efficiency | measures , including measures set forth in a | Commission-approved energy efficiency plan under Section 8-104 | of this Act, with no required initial upfront payment, and to | pay the cost of those products and services over time on their | utility bill. | (b) Notwithstanding any other provision of this Act, a gas | utility serving more than 100,000 customers on January 1, 2009 | shall offer a Commission-approved on-bill financing program | ("program") that allows its retail customers who own a | residential single family home, duplex, or other residential | building with 4 or less units, or condominium at which the gas | service is being provided (i) to borrow funds from a third | party lender in order to purchase gas energy efficiency | measures approved under the program for installation in such | home or condominium without any required upfront payment and | (ii) to pay back such funds over time through the gas utility's |
| bill. Based upon the process described in subsection (b-5) of | this Section, small commercial retail customers , as that term | is defined in Section 19-105 of this Act, who own the premises | at which gas service is being provided may be included in such | program. After receiving a request from a gas utility for | approval of a proposed program and tariffs pursuant to this | Section, the Commission shall render its decision within 120 | days. If no decision is rendered within 120 days, then the | request shall be deemed to be approved. Beginning no later than | December 31, 2013, a gas utility subject to this subsection (b) | shall also offer its program to eligible retail customers that | own a multifamily residential or mixed-use building with no | more than 50 residential units, provided, however, that such | customer must either be a residential customer or small | commercial customer and may not use the program in such a way | that repayment of the cost of energy efficiency measures is | made through tenants' utility bills. A gas utility may impose a | per site loan limit not to exceed $150,000. The program, and | loans issued thereunder, shall only be offered to customers of | the utility that meet the requirements of this Section and that | also have a gas service account at the premises where the | energy efficiency measures being financed shall be installed. | For purposes of this Section, a small commercial customer | for a gas utility shall be defined in that gas utility's | informational filing that is made under subsection (c-5) of | this Section. |
| (b-5) Within 30 days after the effective date of this | amendatory Act of the 96th General Assembly, the Commission | shall convene a workshop process during which interested | participants may discuss issues related to the program, | including program design, eligible gas energy efficiency | measures, vendor qualifications, and a methodology for | ensuring ongoing compliance with such qualifications, | financing, sample documents such as request for proposals, | contracts and agreements, dispute resolution, pre-installment | and post-installment verification, and evaluation. The | workshop process shall be completed within 150 days after the | effective date of this amendatory Act of the 96th General | Assembly. | (c) Not later than 60 days following completion of the | workshop process described in subsection (b-5) of this Section, | each gas utility subject to subsection (b) of this Section | shall submit a proposed program to the Commission that contains | the following components: | (1) A list of recommended gas energy efficiency | measures that will be eligible for on-bill financing. An | eligible gas energy efficiency measure ("measure") shall | be a product or service for which one or more of the | following is true defined by the following : | (A) (blank); The measure would be applied to or | replace gas energy-using equipment; and | (B) the projected Application of the measure to |
| equipment and systems will have estimated gas savings | (determined by rates in effect at the time of | purchase) , that are sufficient to cover the costs of | implementing the measures, including finance charges | and any program fees not recovered pursuant to | subsection (f) of this Section ; or . To assist the gas | utility in identifying or approving measures, the | utility may consult with the Department of Commerce and | Economic Opportunity, as well as with retailers, | technicians and installers of gas energy efficiency | measures and energy auditors (collectively "vendors"). | (C) the product or service is included in a
| Commission-approved energy efficiency plan under | Section 8-104 of this Act. | (2) The gas utility shall issue a request for proposals | ("RFP") to lenders for purposes of providing financing to | participants to pay for approved measures. The RFP criteria | shall include, but not be limited to, the interest rate, | origination fees, and credit terms. The utility shall | select the winning bidders based on its evaluation of these | criteria, with a preference for those bids containing the | rates, fees, and terms most favorable to participants. | (3) The utility shall work with the lenders selected | pursuant to the RFP process, and with vendors, to establish | the terms and processes pursuant to which a participant can | purchase eligible gas energy efficiency measures using the |
| financing obtained from the lender. The vendor shall | explain and offer the approved financing packaging to those | customers identified in subsection (b) of this Section and | shall assist customers in applying for financing. As part | of such process, vendors shall also provide to participants | information about any other incentives that may be | available for the measures. | (4) The lender shall conduct credit checks or undertake | other appropriate measures to limit credit risk, and shall | review and approve or deny financing applications | submitted by customers identified in subsection (b) of this | Section. Following the lender's approval of financing and | the participant's purchase of the measure or measures, the | lender shall forward payment information to the gas | utility, and the utility shall add as a separate line item | on the participant's utility bill a charge showing the | amount due under the program each month. | (5) A loan issued to a participant pursuant to the | program shall be the sole responsibility of the | participant, and any dispute that may arise concerning the | loan's terms, conditions, or charges shall be resolved | between the participant and lender. Upon transfer of the | property title for the premises at which the participant | receives gas service from the utility or the participant's | request to terminate service at such premises, the | participant shall pay in full its gas utility bill, |
| including all amounts due under the program, provided that | this obligation may be modified as provided in subsection | (g) of this Section. Amounts due under the program shall be | deemed amounts owed for residential and, as appropriate, | small commercial gas service. | (6) The gas utility shall remit payment in full to the | lender each month on behalf of the participant. In the | event a participant defaults on payment of its gas utility | bill, the gas utility shall continue to remit all payments | due under the program to the lender, and the utility shall | be entitled to recover all costs related to a participant's | nonpayment through the automatic adjustment clause tariff | established pursuant to Section 19-145 of this Act. In | addition, the gas utility shall retain a security interest | in the measure or measures purchased under the program, and | the utility retains its right to disconnect a participant | that defaults on the payment of its utility bill. | (7) The total outstanding amount financed under the | program in this subsection and subsection (c-5) of this | Section program shall not exceed $2.5 million for a gas | utility or gas utilities under a single holding company, | provided that the gas utility or gas utilities may petition | the Commission for an increase in such amount. | (c-5) Within 120 days after the effective date of this | amendatory Act of the 98th General Assembly, each covered gas | utility shall submit an informational filing to the Commission |
| that describes its plan for implementing the provisions of this | amendatory Act of the 98th General Assembly on or before | December 31, 2013. A gas utility subject to this Section shall | cooperate with any electric utility that provides electric | service to buildings within the gas utility's service territory | so that it is practical and feasible for the owner of a | multifamily building to make a single application to access | loans for both gas and electric energy efficiency measures in | any individual building. | (d) A program approved by the Commission shall also include | the following criteria and guidelines for such program: | (1) guidelines for financing of measures installed | under a program, including, but not limited to, RFP | criteria and limits on both individual loan amounts and the | duration of the loans; | (2) criteria and standards for identifying and | approving measures; | (3) qualifications of vendors that will market or | install measures, as well as a methodology for ensuring | ongoing compliance with such qualifications; | (4) sample contracts and agreements necessary to | implement the measures and program; and | (5) the types of data and information that utilities | and vendors participating in the program shall collect for | purposes of preparing the reports required under | subsection (g) of this Section. |
| (e) The proposed program submitted by each gas utility | shall be consistent with the provisions of this Section that | define operational, financial, and billing arrangements | between and among program participants, vendors, lenders, and | the gas utility. | (f) A gas utility shall recover all of the prudently | incurred costs of offering a program approved by the Commission | pursuant to this Section, including, but not limited to, all | start-up and administrative costs and the costs for program | evaluation. All prudently incurred costs under this Section | shall be recovered from the residential and small commercial | retail customer classes eligible to participate in the program | through the automatic adjustment clause tariff established | pursuant to Section 8-104 of this Act. | (g) An independent evaluation of a program shall be | conducted after 3 years of the program's operation. The gas | utility shall retain an independent evaluator who shall | evaluate the effects of the measures installed under the | program and the overall operation of the program, including, | but not limited to, customer eligibility criteria and whether | the payment obligation for permanent gas energy efficiency | measures that will continue to provide benefits of energy | savings should attach to the meter location. As part of the | evaluation process, the evaluator shall also solicit feedback | from participants and interested stakeholders. The evaluator | shall issue a report to the Commission on its findings no later |
| than 4 years after the date on which the program commenced, and | the Commission shall issue a report to the Governor and General | Assembly including a summary of the information described in | this Section as well as its recommendations as to whether the | program should be discontinued, continued with modification or | modifications or continued without modification, provided that | any recommended modifications shall only apply prospectively | and to measures not yet installed or financed. | (h) A gas utility offering a Commission-approved program | pursuant to this Section shall not be required to comply with | any other statute, order, rule, or regulation of this State | that may relate to the offering of such program, provided that | nothing in this Section is intended to limit the gas utility's | obligation to comply with this Act and the Commission's orders, | rules, and regulations, including Part 280 of Title 83 of the | Illinois Administrative Code. | (i) The source of a utility customer's gas supply shall not | disqualify a customer from participation in the utility's | on-bill financing program. Customers of alternative gas | suppliers may participate in the program under the same terms | and conditions applicable to the utility's supply customers.
| (Source: P.A. 96-33, eff. 7-10-09.)
| Section 99. Effective date. This Act takes effect upon | becoming law. |
Effective Date: 8/27/2013
|