102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3101

 

Introduced 2/19/2021, by Rep. Delia C. Ramirez

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Building Energy Performance Standard Act. Provides that the purpose of the Illinois Building Energy Performance Standard is to decrease energy consumption, reduce greenhouse gas emissions from existing buildings, and increase economic growth and job creation. Provides that the Illinois Office of Energy shall establish a Building Energy Performance Standard Task Force to advise and provide technical assistance and recommendations relating to the Illinois Building Energy Performance Standard. Amends the Energy Efficient Building Act. Provides that the Capital Development Board, in consultation with the Department of Commerce and Economic Opportunity, shall create and adopt the Illinois Stretch Energy Code to allow municipalities and projects authorized or funded by the Board to achieve more energy efficiency in buildings than the Illinois Energy Conservation Code. Makes changes in provisions concerning definitions; applicability; enforcement; and home rule. Amends the Public Utilities Act. Provides that beginning in 2023, all gas distribution utilities in the State participating in certain energy efficiency programs shall achieve specified annual energy savings goals. Makes changes in provisions concerning energy efficiency and demand-response measures and qualified energy efficiency installers. Effective immediately.


LRB102 15747 SPS 21113 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3101LRB102 15747 SPS 21113 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Building Energy Performance Standard Act.
 
6    Section 5. Findings. The General Assembly finds that:
7    (a) The growing clean energy economy in Illinois can be a
8vehicle for expanding equitable access to public health,
9safety, a cleaner environment, quality jobs, economic
10opportunity, and wealth-building, particularly in economically
11disadvantaged communities and communities of black,
12indigenous, and people of color that have had to bear the
13disproportionate burden of dirty fossil fuel pollution.
14    (b) Energy efficiency should form the basis of any robust
15clean energy policy. It is the cheapest clean energy resource,
16and efficiency upgrades help customers manage their energy
17bills directly by reducing the energy they need, and
18indirectly by holding demand and prices down statewide.
 
19    Section 10. Building Energy Performance Standard.
20    (a) The purpose of the Illinois Building Energy
21Performance Standard is to decrease energy consumption, reduce
22greenhouse gas emissions from existing buildings, and increase

 

 

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1economic growth and job creation by:
2        (1) creating a Building Energy Performance Standard
3    through a stakeholder engagement process;
4        (2) implementing the Building Energy Performance
5    Standard for all state-owned buildings; and
6        (3) creating a uniform Building Energy Performance
7    Standard that may be adopted by local jurisdictions and
8    may be applicable to publicly owned buildings or privately
9    owned buildings, or both.
10    (b) Within 90 days after the effective date of this Act,
11the Illinois Office of Energy shall establish a Building
12Energy Performance Standard Task Force to advise and provide
13technical assistance and recommendations for the Illinois
14Building Energy Performance Standard, which shall:
15        (A) advise the Illinois Office of Energy on creation
16    of an implementation plan for the Building Energy
17    Performance Standard;
18        (B) recommend amendments to proposed regulations
19    issued by the Illinois Office of Energy;
20        (C) recommend complementary programs or policies; and
21        (D) complete its tasks within one year of enactment.
22        The Task Force shall be composed of representatives,
23or their designees, from the following entities:
24        (i) the Director of the Illinois Environmental
25    Protection Agency;
26        (ii) the Director of the Capital Development Board;

 

 

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1        (iii) The Director of Central Management Services;
2        (iv) a minimum of one technical expert with extensive
3    knowledge of energy use in multiple existing commercial
4    building use types;
5        (v) a representative from the City of Chicago;
6        (vi) the Director of the Illinois Housing Development
7    Authority;
8        (vii) the Director of Commerce and Economic
9    Opportunity;
10        (viii) a representative from an environmental or
11    sustainability nonprofit organization;
12        (ix) a representative from each of the investor-owned
13    utilities in Illinois;
14        (x) a representative who is an affordable housing
15    advocate;
16        (xi) a representative from a market-rate multifamily
17    building;
18        (xii) a representative from a building owners and
19    managers association;
20        (xiii) a representative from a public university
21    system;
22        (xiv) a representative of a nonprofit or professional
23    association advocating for energy efficient buildings or a
24    low-carbon built environment;
25        (xvi) a representative of a business or entity that
26    provides energy efficiency or renewable energy services to

 

 

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1    large buildings or affordable housing in the State; and
2        (xvii) other experts or organizations deemed necessary
3    by the Illinois Office of Energy.
4    (c) In establishing specific performance standards and
5processes, the Illinois Office of Energy shall:
6        (1) require all buildings owned by the State of
7    Illinois to comply with the Building Energy Performance
8    Standard. State-owned buildings shall meet the following
9    timeline for compliance with Building Energy Performance
10    Standard:
11            (A) buildings over 50,000 gross square feet shall
12        comply no later than January 1, 2024;
13            (B) buildings over 25,000 gross square feet shall
14        comply no later than January 1, 2026;
15            (C) buildings over 10,000 gross square feet shall
16        comply no later than January 1, 2028; and
17            (D) buildings below 10,000 gross square feet are
18        not required to comply.
19        (2) require the property type energy use targets
20    established by the Illinois Building Energy Performance
21    Standard to be the minimum energy efficiency requirements
22    for any jurisdiction adopting a building energy
23    performance standard;
24        (3) with input from the Building Energy Performance
25    Standard Task Force, establish property types and building
26    energy performance standards for each property type, or an

 

 

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1    equivalent metric for buildings that do not receive an
2    ENERGY STAR score, no later than January 1, 2023;
3    beginning every 5 years after January 1, 2023, the
4    Illinois Office of Energy shall review and assess the need
5    to update the energy performance standards for each
6    property type;
7        (4) establish reporting and data verification
8    requirements for buildings covered by Building Energy
9    Performance Standard, and establish requirements for
10    making reporting and data publicly available;
11        (5) establish that the Building Energy Performance
12    Standard for buildings that are eligible for an ENERGY
13    STAR score is no lower than the State median ENERGY STAR
14    score for buildings of each property type;
15        (6) establish penalty guidelines for buildings failing
16    to comply with the building energy performance
17    requirements; and
18        (7) if needed, establish exemption criteria, in
19    consultation with the Building Energy Performance Standard
20    Task Force, including:
21            (A) for qualifying affordable housing buildings to
22        delay compliance with the building energy performance
23        requirements for no more than 3 years if the owner
24        demonstrates, to the satisfaction of the Illinois
25        Office of Energy, financial distress, change of
26        ownership, vacancy, major renovation, pending

 

 

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1        demolition, or other acceptable circumstances as
2        determined by the State of Illinois; and
3            (B) for qualifying buildings to delay compliance
4        with the building energy performance requirements for
5        up to 3 years if the owner demonstrates, to the
6        satisfaction of the State of Illinois, financial
7        distress, change of ownership, vacancy, major
8        renovation, pending demolition, or other acceptable
9        circumstances determined by the State of Illinois.
10    (d) In establishing specific performance standards, the
11Illinois Office of Energy may consider:
12        (1) the existence of any historic buildings and any
13    restrictions related to the treatment of historic
14    buildings;
15        (2) the diversity of building uses and requirements;
16    and
17        (3) the impact on zoning regulations.
18    (e) The Illinois Office of Energy shall, no later than
19January 1, 2023, create, and make publicly available, a
20strategic implementation plan for State-owned buildings
21complying with the Illinois Building Energy Performance
22Standard.
23    (f) The Illinois Office of Energy shall post the strategic
24implementation plan on its website.
 
25    Section 90. The Energy Efficient Building Act is amended

 

 

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1by changing Sections 10, 15, 20, 30, and 45 and by adding
2Section 55 as follows:
 
3    (20 ILCS 3125/10)
4    Sec. 10. Definitions.
5    "Board" means the Capital Development Board.
6    "Building" includes both residential buildings and
7commercial buildings.
8    "Code" means the latest published edition of the
9International Code Council's International Energy Conservation
10Code as adopted by the Board, including any published
11supplements adopted by the Board and any amendments and
12adaptations to the Code that are made by the Board.
13    "Commercial building" means any building except a building
14that is a residential building, as defined in this Section.
15    "Department" means the Department of Commerce and Economic
16Opportunity.
17    "Municipality" means any city, village, or incorporated
18town.
19    "Residential building" means (i) a detached one-family or
202-family dwelling or (ii) any building that is 3 stories or
21less in height above grade that contains multiple dwelling
22units, in which the occupants reside on a primarily permanent
23basis, such as a townhouse, a row house, an apartment house, a
24convent, a monastery, a rectory, a fraternity or sorority
25house, a dormitory, and a rooming house; provided, however,

 

 

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1that when applied to a building located within the boundaries
2of a municipality having a population of 1,000,000 or more,
3the term "residential building" means a building containing
4one or more dwelling units, not exceeding 4 stories above
5grade, where occupants are primarily permanent.
6    "Site energy index" means a scalar published by the
7Pacific Northwest National Laboratories representing the ratio
8of the site energy performance of an evaluated code compared
9to the site energy performance of the 2006 International
10Energy Conservation Code. A site energy index includes only
11conservation measures and excludes net energy credit for any
12on-site or off-site energy production.
13(Source: P.A. 101-144, eff. 7-26-19.)
 
14    (20 ILCS 3125/15)
15    Sec. 15. Energy Efficient Building Code. The Board, in
16consultation with the Department, shall adopt the Code as
17minimum requirements for commercial buildings, applying to the
18construction of, renovations to, and additions to all
19commercial buildings in the State. The Board, in consultation
20with the Department, shall also adopt the Code as the minimum
21and maximum requirements for residential buildings, applying
22to the construction of, renovations to, and additions to all
23residential buildings in the State, except as provided for in
24Section 45 of this Act. The Board may appropriately adapt the
25International Energy Conservation Code to apply to the

 

 

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1particular economy, population distribution, geography, and
2climate of the State and construction therein, consistent with
3the public policy objectives of this Act.
4(Source: P.A. 96-778, eff. 8-28-09.)
 
5    (20 ILCS 3125/20)
6    Sec. 20. Applicability.
7    (a) The Board shall review and adopt the Code within one
8year after its publication. The Code shall take effect within
96 months after it is adopted by the Board, except that,
10beginning January 1, 2012, the Code adopted in 2012 shall take
11effect on January 1, 2013. Except as otherwise provided in
12this Act, the Code shall apply to (i) any new building or
13structure in this State for which a building permit
14application is received by a municipality or county and (ii)
15beginning on the effective date of this amendatory Act of the
16100th General Assembly, each State facility specified in
17Section 4.01 of the Capital Development Board Act. In the case
18of any addition, alteration, renovation, or repair to an
19existing residential or commercial structure, the Code adopted
20under this Act applies only to the portions of that structure
21that are being added, altered, renovated, or repaired. The
22changes made to this Section by this amendatory Act of the 97th
23General Assembly shall in no way invalidate or otherwise
24affect contracts entered into on or before the effective date
25of this amendatory Act of the 97th General Assembly.

 

 

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1    (b) The following buildings shall be exempt from the Code:
2        (1) Buildings otherwise exempt from the provisions of
3    a locally adopted building code and buildings that do not
4    contain a conditioned space.
5        (2) Buildings that do not use either electricity or
6    fossil fuel for comfort conditioning. For purposes of
7    determining whether this exemption applies, a building
8    will be presumed to be heated by electricity, even in the
9    absence of equipment used for electric comfort heating,
10    whenever the building is provided with electrical service
11    in excess of 100 amps, unless the code enforcement
12    official determines that this electrical service is
13    necessary for purposes other than providing electric
14    comfort heating.
15        (3) Historic buildings. This exemption shall apply to
16    those buildings that are listed on the National Register
17    of Historic Places or the Illinois Register of Historic
18    Places, and to those buildings that have been designated
19    as historically significant by a local governing body that
20    is authorized to make such designations.
21        (4) (Blank).
22        (5) Other buildings specified as exempt by the
23    International Energy Conservation Code.
24    (c) Additions, alterations, renovations, or repairs to an
25existing building, building system, or portion thereof shall
26conform to the provisions of the Code as they relate to new

 

 

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1construction without requiring the unaltered portion of the
2existing building or building system to comply with the Code.
3The following need not comply with the Code, provided that the
4energy use of the building is not increased: (i) storm windows
5installed over existing fenestration, (ii) glass-only
6replacements in an existing sash and frame, (iii) existing
7ceiling, wall, or floor cavities exposed during construction,
8provided that these cavities are filled with insulation, and
9(iv) construction where the existing roof, wall, or floor is
10not exposed.
11    (d) A unit of local government that does not regulate
12energy efficient building standards is not required to adopt,
13enforce, or administer the Code; however, any energy efficient
14building standards adopted by a unit of local government must
15comply with this Act. If a unit of local government does not
16regulate energy efficient building standards, any
17construction, renovation, or addition to buildings or
18structures is subject to the provisions contained in this Act.
19(Source: P.A. 100-729, eff. 8-3-18.)
 
20    (20 ILCS 3125/30)
21    Sec. 30. Enforcement. The Board, in consultation with the
22Department, shall determine procedures for compliance with the
23Code. These procedures may include but need not be limited to
24certification by a national, State, or local accredited energy
25conservation program or inspections from private

 

 

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1Code-certified inspectors using the Code. For purposes of the
2Illinois Stretch Energy Code under Section 55 of this Act, the
3Board shall allow and encourage, as an alternative compliance
4mechanism, project certification by a nationally recognized
5nonprofit certification organization specializing in
6high-performance passive buildings and offering
7climate-specific building energy standards that require equal
8or better energy performance than the Illinois Stretch Energy
9Code.
10(Source: P.A. 93-936, eff. 8-13-04.)
 
11    (20 ILCS 3125/45)
12    Sec. 45. Home rule.
13    (a) (Blank) No unit of local government, including any
14home rule unit, may regulate energy efficient building
15standards for commercial buildings in a manner that is less
16stringent than the provisions contained in this Act.
17    (b) No unit of local government, including any home rule
18unit, may regulate energy efficient building standards for
19residential or commercial buildings in a manner that is either
20less or more stringent than the standards established pursuant
21to this Act; provided, however, that the following entities
22may regulate energy efficient building standards for
23residential or commercial buildings in a manner that is more
24stringent than the provisions contained in this Act: (i) a
25unit of local government, including a home rule unit, that

 

 

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1has, on or before May 15, 2009, adopted or incorporated by
2reference energy efficient building standards for residential
3buildings that are equivalent to or more stringent than the
42006 International Energy Conservation Code, (ii) a unit of
5local government, including a home rule unit, that has, on or
6before May 15, 2009, provided to the Capital Development
7Board, as required by Section 10.18 of the Capital Development
8Board Act, an identification of an energy efficient building
9code or amendment that is equivalent to or more stringent than
10the 2006 International Energy Conservation Code, (iii) a
11municipality that has adopted the Illinois Stretch Energy
12Code, and (iv) (iii) a municipality with a population of
131,000,000 or more.
14    (c) No unit of local government, including any home rule
15unit or unit of local government that is subject to State
16regulation under the Code as provided in Section 15 of this
17Act, may hereafter enact any annexation ordinance or
18resolution, or require or enter into any annexation agreement,
19that imposes energy efficient building standards for
20residential or commercial buildings that are either less or
21more stringent than the energy efficiency standards in effect,
22at the time of construction, throughout the unit of local
23government, except for the Illinois Stretch Energy Code.
24    (d) This Section is a denial and limitation of home rule
25powers and functions under subsection (i) of Section 6 of
26Article VII of the Illinois Constitution on the concurrent

 

 

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1exercise by home rule units of powers and functions exercised
2by the State. Nothing in this Section, however, prevents a
3unit of local government from adopting an energy efficiency
4code or standards for commercial buildings that are more
5stringent than the Code under this Act.
6(Source: P.A. 99-639, eff. 7-28-16.)
 
7    (20 ILCS 3125/55 new)
8    Sec. 55. Illinois Stretch Energy Code.
9    (a) The Board, in consultation with the Department, shall
10create and adopt the Illinois Stretch Energy Code, to allow
11municipalities and projects authorized or funded by the Board
12to achieve more energy efficiency in buildings than the
13Illinois Energy Conservation Code through a consistent pathway
14across the State. The Illinois Stretch Energy Code shall be
15available for adoption by any municipality and shall set
16minimum energy efficiency requirements, taking the place of
17the Illinois Energy Conservation Code within any municipality
18that adopts the Illinois Stretch Energy Code.
19    (b) The Illinois Stretch Energy Code shall have separate
20components for commercial and residential buildings, which may
21be adopted by the municipality jointly or separately.
22    (c) The Illinois Stretch Energy Code shall apply to all
23projects to which an energy conservation code is applicable
24that are authorized or funded in any part by the Board after
25January 1, 2023.

 

 

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1    (d) Development of the Illinois Stretch Energy Code shall
2be completed and available for adoption by municipalities by
3December 31, 2022.
4    (e) Consistent with the requirements under paragraph (2.5)
5of subsection (g) of Section 8-103B of the Public Utilities
6Act and under paragraph (2) of subsection (j) of Section
78-104.1 of the Public Utilities Act, municipalities that adopt
8the Illinois Stretch Energy Code may use utility programs to
9support compliance with the Illinois Stretch Energy Code. The
10amount of savings from such utility efforts that may be
11counted toward achievement of their cumulative persisting
12annual savings goals shall be based on reasonable estimates of
13the increase in savings resulting from the utility efforts,
14relative to reasonable approximations of what would have
15occurred absent the utility involvement.
16    (f) The Illinois Stretch Energy Code's residential
17components shall:
18        (1) apply to residential buildings as defined under
19    Section 10;
20        (2) set performance targets using a site energy index
21    with reductions relative to the 2006 International Energy
22    Conservation Code; and
23        (3) include stretch energy codes with site energy
24    index standards and adoption dates as follows: by no later
25    than December 31, 2022, the Board shall create and adopt a
26    stretch energy code with a site energy index no greater

 

 

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1    than 0.50 of the 2006 International Energy Conservation
2    Code; by no later than December 31, 2025, the Board shall
3    create and adopt a stretch energy code with a site energy
4    index no greater than 0.40 of the 2006 International
5    Energy Conservation Code, unless the Board identifies
6    unanticipated burdens associated with the stretch energy
7    code adopted in 2022, in which case the Board may adopt a
8    stretch energy code with a site energy index no greater
9    than 0.42 of the 2006 International Energy Conservation
10    Code, provided that the more relaxed standard has a site
11    energy index that is at least 0.05 more restrictive than
12    the 2024 International Energy Conservation Code; by no
13    later than December 31, 2028, the Board shall create and
14    adopt a stretch energy code with a site energy index no
15    greater than 0.33 of the 2006 International Energy
16    Conservation Code, unless the Board identifies
17    unanticipated burdens associated with the stretch energy
18    code adopted in 2025, in which case the Board may adopt a
19    stretch energy code with a site energy index no greater
20    than 0.35 of the 2006 International Energy Conservation
21    Code, but only if that more relaxed standard has a site
22    energy index that is at least 0.05 more restrictive than
23    the 2027 International Energy Conservation Code; and by no
24    later than December 31, 2031, the Board shall create and
25    adopt a stretch energy code with a site energy index no
26    greater than 0.25 of the 2006 International Energy

 

 

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1    Conservation Code.
2    (g) The Illinois Stretch Energy Code's commercial
3components shall:
4        (1) apply to commercial buildings as defined under
5    Section 10;
6        (2) set performance targets using a site energy index
7    with reductions relative to the 2006 International Energy
8    Conservation Code; and
9        (3) include stretch energy codes with site energy
10    index standards and adoption dates as follows: by no later
11    than December 31, 2022, the Board shall create and adopt a
12    stretch energy code with a site energy index no greater
13    than 0.60 of the 2006 International Energy Conservation
14    Code; by no later than December 31, 2025, the Board shall
15    create and adopt a stretch energy code with a site energy
16    index no greater than 0.50 of the 2006 International
17    Energy Conservation Code; by no later than December 31,
18    2028, the Board shall create and adopt a stretch energy
19    code with a site energy index no greater than 0.44 of the
20    2006 International Energy Conservation Code; and by no
21    later than December 31, 2031, the Board shall create and
22    adopt a stretch energy code with a site energy index no
23    greater than 0.39 of the 2006 International Energy
24    Conservation Code.
25    (h) The process for the creation of the Illinois Stretch
26Energy Code includes:

 

 

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1        (1) within 60 days after the effective date of this
2    amendatory Act of the 102nd General Assembly, the Capital
3    Development Board shall establish an Illinois Stretch
4    Energy Code Task Force to advise and provide technical
5    assistance and recommendations to the Capital Development
6    Board for the Illinois Stretch Energy Code, which shall:
7            (A) advise the Capital Development Board on
8        creation of interim performance targets, code
9        requirements, and an implementation plan for the
10        Illinois Stretch Energy Code;
11            (B) recommend amendments to proposed rules issued
12        by the Capital Development Board;
13            (C) recommend complementary programs or policies;
14            (D) complete recommendations and development for
15        the Illinois Stretch Energy Code elements and
16        requirements by July 31, 2022;
17            (E) be composed of, but not limited to,
18        representatives, or their designees, from the
19        following entities:
20                (i) a representative from a group that
21            represents environmental justice;
22                (ii) a representative of a nonprofit or
23            professional association advocating for the
24            environment;
25                (iii) a representative of an organization
26            representing local governments in the metropolitan

 

 

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1            Chicago region;
2                (iv) a representative of the City of Chicago;
3                (v) a representative of an organization
4            representing local governments outside the
5            metropolitan Chicago region;
6                (vi) a representative for the investor-owned
7            utilities of Illinois;
8                (vii) an energy-efficiency advocate with
9            technical expertise in single-family residential
10            buildings;
11                (viii) an energy-efficiency advocate with
12            technical expertise in commercial buildings;
13                (ix) an energy-efficiency advocate with
14            technical expertise in multifamily buildings, such
15            as an affordable housing developer;
16                (x) a representative from the architecture or
17            engineering industry;
18                (xi) a representative from a home builders
19            association;
20                (xii) a representative from the commercial
21            building industry;
22                (xiii) a representative of the enforcement
23            industry, such as a code official or energy rater;
24                (xiv) a representative of organized labor; and
25                (xv) other experts or organizations deemed
26            necessary by the Capital Development Board; and

 

 

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1            (F) be co-chaired by:
2                (i) a representative of the environmental
3            community;
4                (ii) a representative of the environmental
5            justice community; and
6                (iii) a municipal representative.
7        (2) As part of its deliberations, the Illinois Stretch
8    Energy Code Task Force shall actively solicit input from
9    other energy code stakeholders and interested parties.
 
10    Section 95. The Public Utilities Act is amended by
11changing Sections 8-103B and 16-128B and by adding Section
128-104.1 as follows:
 
13    (220 ILCS 5/8-103B)
14    Sec. 8-103B. Energy efficiency and demand-response
15measures.
16    (a) It is the policy of the State that electric utilities
17are required to use cost-effective energy efficiency and
18demand-response measures to reduce delivery load. Requiring
19investment in cost-effective energy efficiency and
20demand-response measures will reduce direct and indirect costs
21to consumers by decreasing environmental impacts and by
22avoiding or delaying the need for new generation,
23transmission, and distribution infrastructure. It serves the
24public interest to allow electric utilities to recover costs

 

 

HB3101- 21 -LRB102 15747 SPS 21113 b

1for reasonably and prudently incurred expenditures for energy
2efficiency and demand-response measures. As used in this
3Section, "cost-effective" means that the measures satisfy the
4total resource cost test. The low-income measures described in
5subsection (c) of this Section shall not be required to meet
6the total resource cost test. For purposes of this Section,
7the terms "energy-efficiency", "demand-response", "electric
8utility", and "total resource cost test" have the meanings set
9forth in the Illinois Power Agency Act. "Black, indigenous,
10and people of color" and "BIPOC" means people who are members
11of the groups described in subparagraphs (a) through (e) of
12paragraph (A) of subsection (1) of Section 2 of the Business
13Enterprise for Minorities, Women, and Persons with
14Disabilities Act.
15    (a-5) This Section applies to electric utilities serving
16more than 500,000 retail customers in the State for those
17multi-year plans commencing after December 31, 2017.
18    (b) For purposes of this Section, electric utilities
19subject to this Section that serve more than 3,000,000 retail
20customers in the State shall be deemed to have achieved a
21cumulative persisting annual savings of 6.6% from energy
22efficiency measures and programs implemented during the period
23beginning January 1, 2012 and ending December 31, 2017, which
24percent is based on the deemed average weather normalized
25sales of electric power and energy during calendar years 2014,
262015, and 2016 of 88,000,000 MWhs. For the purposes of this

 

 

HB3101- 22 -LRB102 15747 SPS 21113 b

1subsection (b) and subsection (b-5), the 88,000,000 MWhs of
2deemed electric power and energy sales shall be reduced by the
3number of MWhs equal to the sum of the annual consumption of
4customers that are exempt from subsections (a) through (j) of
5this Section under subsection (l) of this Section, as averaged
6across the calendar years 2014, 2015, and 2016. After 2017,
7the deemed value of cumulative persisting annual savings from
8energy efficiency measures and programs implemented during the
9period beginning January 1, 2012 and ending December 31, 2017,
10shall be reduced each year, as follows, and the applicable
11value shall be applied to and count toward the utility's
12achievement of the cumulative persisting annual savings goals
13set forth in subsection (b-5):
14        (1) 5.8% deemed cumulative persisting annual savings
15    for the year ending December 31, 2018;
16        (2) 5.2% deemed cumulative persisting annual savings
17    for the year ending December 31, 2019;
18        (3) 4.5% deemed cumulative persisting annual savings
19    for the year ending December 31, 2020;
20        (4) 4.0% deemed cumulative persisting annual savings
21    for the year ending December 31, 2021;
22        (5) 3.5% deemed cumulative persisting annual savings
23    for the year ending December 31, 2022;
24        (6) 3.1% deemed cumulative persisting annual savings
25    for the year ending December 31, 2023;
26        (7) 2.8% deemed cumulative persisting annual savings

 

 

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1    for the year ending December 31, 2024;
2        (8) 2.5% deemed cumulative persisting annual savings
3    for the year ending December 31, 2025;
4        (9) 2.3% deemed cumulative persisting annual savings
5    for the year ending December 31, 2026;
6        (10) 2.1% deemed cumulative persisting annual savings
7    for the year ending December 31, 2027;
8        (11) 1.8% deemed cumulative persisting annual savings
9    for the year ending December 31, 2028;
10        (12) 1.7% deemed cumulative persisting annual savings
11    for the year ending December 31, 2029; and
12        (13) 1.5% deemed cumulative persisting annual savings
13    for the year ending December 31, 2030; .
14        (14) 1.3% deemed cumulative persisting annual savings
15    for the year ending December 31, 2031;
16        (15) 1.1% deemed cumulative persisting annual savings
17    for the year ending December 31, 2032;
18        (16) 0.9% deemed cumulative persisting annual savings
19    for the year ending December 31, 2033;
20        (17) 0.7% deemed cumulative persisting annual savings
21    for the year ending December 31, 2034;
22        (18) 0.5% deemed cumulative persisting annual savings
23    for the year ending December 31, 2035;
24        (19) 0.4% deemed cumulative persisting annual savings
25    for the year ending December 31, 2036;
26        (20) 0.3% deemed cumulative persisting annual savings

 

 

HB3101- 24 -LRB102 15747 SPS 21113 b

1    for the year ending December 31, 2037;
2        (21) 0.2% deemed cumulative persisting annual savings
3    for the year ending December 31, 2038;
4        (22) 0.1% deemed cumulative persisting annual savings
5    for the year ending December 31, 2039; and
6        (23) 0.0% deemed cumulative persisting annual savings
7    for the year ending December 31, 2040 and all subsequent
8    years.
9    For purposes of this Section, "cumulative persisting
10annual savings" means the total electric energy savings in a
11given year from measures installed in that year or in previous
12years, but no earlier than January 1, 2012, that are still
13operational and providing savings in that year because the
14measures have not yet reached the end of their useful lives.
15    (b-5) Beginning in 2018, electric utilities subject to
16this Section that serve more than 3,000,000 retail customers
17in the State shall achieve the following cumulative persisting
18annual savings goals, as modified by subsection (f) of this
19Section and as compared to the deemed baseline of 88,000,000
20MWhs of electric power and energy sales set forth in
21subsection (b), as reduced by the number of MWhs equal to the
22sum of the annual consumption of customers that are exempt
23from subsections (a) through (j) of this Section under
24subsection (l) of this Section as averaged across the calendar
25years 2014, 2015, and 2016, through the implementation of
26energy efficiency measures during the applicable year and in

 

 

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1prior years, but no earlier than January 1, 2012:
2        (1) 7.8% cumulative persisting annual savings for the
3    year ending December 31, 2018;
4        (2) 9.1% cumulative persisting annual savings for the
5    year ending December 31, 2019;
6        (3) 10.4% cumulative persisting annual savings for the
7    year ending December 31, 2020;
8        (4) 11.8% cumulative persisting annual savings for the
9    year ending December 31, 2021;
10        (5) 13.1% cumulative persisting annual savings for the
11    year ending December 31, 2022;
12        (6) 14.4% cumulative persisting annual savings for the
13    year ending December 31, 2023;
14        (7) 15.7% cumulative persisting annual savings for the
15    year ending December 31, 2024;
16        (8) 17% cumulative persisting annual savings for the
17    year ending December 31, 2025;
18        (9) 17.9% cumulative persisting annual savings for the
19    year ending December 31, 2026;
20        (10) 18.8% cumulative persisting annual savings for
21    the year ending December 31, 2027;
22        (11) 19.7% cumulative persisting annual savings for
23    the year ending December 31, 2028;
24        (12) 20.6% cumulative persisting annual savings for
25    the year ending December 31, 2029; and
26        (13) 21.5% cumulative persisting annual savings for

 

 

HB3101- 26 -LRB102 15747 SPS 21113 b

1    the year ending December 31, 2030.
2    No later than December 31, 2021, the Illinois Commerce
3Commission shall establish additional cumulative persisting
4annual savings goals for the years 2031 through 2035. No later
5than December 31, 2024, the Illinois Commerce Commission shall
6establish additional cumulative persisting annual savings
7goals for the years 2036 through 2040. The Commission shall
8also establish additional cumulative persisting annual savings
9goals every 5 years thereafter to ensure utilities always have
10goals that extend at least 11 years into the future. The
11cumulative persisting annual savings goals beyond the year
122030 shall increase by 0.9 percentage points per year, absent
13a Commission decision to initiate a proceeding to consider
14establishing goals that increase by more or less than that
15amount. Such a proceeding must be conducted in accordance with
16the procedures described in subsection (f) of this Section. If
17such a proceeding is initiated, the cumulative persisting
18annual savings goals established by the Commission through
19that proceeding shall reflect the Commission's best estimate
20of the maximum amount of additional savings that are forecast
21to be cost-effectively achievable unless such best estimates
22would result in goals that represent less than 0.5 percentage
23point annual increases in total cumulative persisting annual
24savings. The Commission may only establish goals that
25represent less than 0.5 percentage point annual increases in
26cumulative persisting annual savings if it can demonstrate,

 

 

HB3101- 27 -LRB102 15747 SPS 21113 b

1based on clear and convincing evidence and through independent
2analysis, that 0.5 percentage point increases are not
3cost-effectively achievable. The Commission shall inform its
4decision based on an energy efficiency potential study that
5conforms to the requirements of subsection (f-5) of this
6Section.
7    (b-10) For purposes of this Section, electric utilities
8subject to this Section that serve less than 3,000,000 retail
9customers but more than 500,000 retail customers in the State
10shall be deemed to have achieved a cumulative persisting
11annual savings of 6.6% from energy efficiency measures and
12programs implemented during the period beginning January 1,
132012 and ending December 31, 2017, which is based on the deemed
14average weather normalized sales of electric power and energy
15during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
16For the purposes of this subsection (b-10) and subsection
17(b-15), the 36,900,000 MWhs of deemed electric power and
18energy sales shall be reduced by the number of MWhs equal to
19the sum of the annual consumption of customers that are exempt
20from subsections (a) through (j) of this Section under
21subsection (l) of this Section, as averaged across the
22calendar years 2014, 2015, and 2016. After 2017, the deemed
23value of cumulative persisting annual savings from energy
24efficiency measures and programs implemented during the period
25beginning January 1, 2012 and ending December 31, 2017, shall
26be reduced each year, as follows, and the applicable value

 

 

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1shall be applied to and count toward the utility's achievement
2of the cumulative persisting annual savings goals set forth in
3subsection (b-15):
4        (1) 5.8% deemed cumulative persisting annual savings
5    for the year ending December 31, 2018;
6        (2) 5.2% deemed cumulative persisting annual savings
7    for the year ending December 31, 2019;
8        (3) 4.5% deemed cumulative persisting annual savings
9    for the year ending December 31, 2020;
10        (4) 4.0% deemed cumulative persisting annual savings
11    for the year ending December 31, 2021;
12        (5) 3.5% deemed cumulative persisting annual savings
13    for the year ending December 31, 2022;
14        (6) 3.1% deemed cumulative persisting annual savings
15    for the year ending December 31, 2023;
16        (7) 2.8% deemed cumulative persisting annual savings
17    for the year ending December 31, 2024;
18        (8) 2.5% deemed cumulative persisting annual savings
19    for the year ending December 31, 2025;
20        (9) 2.3% deemed cumulative persisting annual savings
21    for the year ending December 31, 2026;
22        (10) 2.1% deemed cumulative persisting annual savings
23    for the year ending December 31, 2027;
24        (11) 1.8% deemed cumulative persisting annual savings
25    for the year ending December 31, 2028;
26        (12) 1.7% deemed cumulative persisting annual savings

 

 

HB3101- 29 -LRB102 15747 SPS 21113 b

1    for the year ending December 31, 2029; and
2        (13) 1.5% deemed cumulative persisting annual savings
3    for the year ending December 31, 2030; .
4        (14) 1.3% deemed cumulative persisting annual savings
5    for the year ending December 31, 2031;
6        (15) 1.1% deemed cumulative persisting annual savings
7    for the year ending December 31, 2032;
8        (16) 0.9% deemed cumulative persisting annual savings
9    for the year ending December 31, 2033;
10        (17) 0.7% deemed cumulative persisting annual savings
11    for the year ending December 31, 2034;
12        (18) 0.5% deemed cumulative persisting annual savings
13    for the year ending December 31, 2035;
14        (19) 0.4% deemed cumulative persisting annual savings
15    for the year ending December 31, 2036;
16        (20) 0.3% deemed cumulative persisting annual savings
17    for the year ending December 31, 2037;
18        (21) 0.2% deemed cumulative persisting annual savings
19    for the year ending December 31, 2038;
20        (22) 0.1% deemed cumulative persisting annual savings
21    for the year ending December 31, 2039; and
22        (23) 0.0% deemed cumulative persisting annual savings
23    for the year ending December 31, 2040 and all subsequent
24    years.
25    (b-15) Beginning in 2018, electric utilities subject to
26this Section that serve less than 3,000,000 retail customers

 

 

HB3101- 30 -LRB102 15747 SPS 21113 b

1but more than 500,000 retail customers in the State shall
2achieve the following cumulative persisting annual savings
3goals, as modified by subsection (b-20) and subsection (f) of
4this Section and as compared to the deemed baseline as reduced
5by the number of MWhs equal to the sum of the annual
6consumption of customers that are exempt from subsections (a)
7through (j) of this Section under subsection (l) of this
8Section as averaged across the calendar years 2014, 2015, and
92016, through the implementation of energy efficiency measures
10during the applicable year and in prior years, but no earlier
11than January 1, 2012:
12        (1) 7.4% cumulative persisting annual savings for the
13    year ending December 31, 2018;
14        (2) 8.2% cumulative persisting annual savings for the
15    year ending December 31, 2019;
16        (3) 9.0% cumulative persisting annual savings for the
17    year ending December 31, 2020;
18        (4) 9.8% cumulative persisting annual savings for the
19    year ending December 31, 2021;
20        (5) 10.6% cumulative persisting annual savings for the
21    year ending December 31, 2022;
22        (6) 11.4% cumulative persisting annual savings for the
23    year ending December 31, 2023;
24        (7) 12.2% cumulative persisting annual savings for the
25    year ending December 31, 2024;
26        (8) 13% cumulative persisting annual savings for the

 

 

HB3101- 31 -LRB102 15747 SPS 21113 b

1    year ending December 31, 2025;
2        (9) 13.6% cumulative persisting annual savings for the
3    year ending December 31, 2026;
4        (10) 14.2% cumulative persisting annual savings for
5    the year ending December 31, 2027;
6        (11) 14.8% cumulative persisting annual savings for
7    the year ending December 31, 2028;
8        (12) 15.4% cumulative persisting annual savings for
9    the year ending December 31, 2029; and
10        (13) 16% cumulative persisting annual savings for the
11    year ending December 31, 2030.
12    No later than December 31, 2021, the Illinois Commerce
13Commission shall establish additional cumulative persisting
14annual savings goals for the years 2031 through 2035. No later
15than December 31, 2024, the Illinois Commerce Commission shall
16establish additional cumulative persisting annual savings
17goals for the years 2036 through 2040. The Commission shall
18also establish additional cumulative persisting annual savings
19goals every 5 years thereafter to ensure utilities always have
20goals that extend at least 11 years into the future. The
21cumulative persisting annual savings goals beyond the year
222030 shall increase by 0.6 percentage points per year, absent
23a Commission decision to initiate a proceeding to consider
24establishing goals that increase by more or less than that
25amount. Such a proceeding must be conducted in accordance with
26the procedures described in subsection (f) of this Section. If

 

 

HB3101- 32 -LRB102 15747 SPS 21113 b

1such a proceeding is initiated, the cumulative persisting
2annual savings goals established by the Commission through
3that proceeding shall reflect the Commission's best estimate
4of the maximum amount of additional savings that are forecast
5to be cost-effectively achievable unless such best estimates
6would result in goals that represent less than 0.4 percentage
7point annual increases in total cumulative persisting annual
8savings. The Commission may only establish goals that
9represent less than 0.4 percentage point annual increases in
10cumulative persisting annual savings if it can demonstrate,
11based on clear and convincing evidence and through independent
12analysis, that 0.4 percentage point increases are not
13cost-effectively achievable. The Commission shall inform its
14decision based on an energy efficiency potential study that
15conforms to the requirements of subsection (f-5) of this
16Section.
17    The difference between the cumulative persisting annual
18savings goal for the applicable calendar year and the
19cumulative persisting annual savings goal for the immediately
20preceding calendar year is 0.8% for the period of January 1,
212018 through December 31, 2025 and 0.6% for the period of
22January 1, 2026 through December 31, 2030.
23    (b-20) Each electric utility subject to this Section may
24include cost-effective voltage optimization measures in its
25plans submitted under subsections (f) and (g) of this Section,
26and the costs incurred by a utility to implement the measures

 

 

HB3101- 33 -LRB102 15747 SPS 21113 b

1under a Commission-approved plan shall be recovered under the
2provisions of Article IX or Section 16-108.5 of this Act. For
3purposes of this Section, the measure life of voltage
4optimization measures shall be 15 years. The measure life
5period is independent of the depreciation rate of the voltage
6optimization assets deployed. Utilities may claim savings from
7voltage optimization on circuits for more than 15 years if
8they can demonstrate that they have made additional
9investments necessary to enable voltage optimization savings
10to continue beyond 15 years. Such demonstrations must be
11subject to the review of independent evaluation.
12    Within 270 days after June 1, 2017 (the effective date of
13Public Act 99-906), an electric utility that serves less than
143,000,000 retail customers but more than 500,000 retail
15customers in the State shall file a plan with the Commission
16that identifies the cost-effective voltage optimization
17investment the electric utility plans to undertake through
18December 31, 2024. The Commission, after notice and hearing,
19shall approve or approve with modification the plan within 120
20days after the plan's filing and, in the order approving or
21approving with modification the plan, the Commission shall
22adjust the applicable cumulative persisting annual savings
23goals set forth in subsection (b-15) to reflect any amount of
24cost-effective energy savings approved by the Commission that
25is greater than or less than the following cumulative
26persisting annual savings values attributable to voltage

 

 

HB3101- 34 -LRB102 15747 SPS 21113 b

1optimization for the applicable year:
2        (1) 0.0% of cumulative persisting annual savings for
3    the year ending December 31, 2018;
4        (2) 0.17% of cumulative persisting annual savings for
5    the year ending December 31, 2019;
6        (3) 0.17% of cumulative persisting annual savings for
7    the year ending December 31, 2020;
8        (4) 0.33% of cumulative persisting annual savings for
9    the year ending December 31, 2021;
10        (5) 0.5% of cumulative persisting annual savings for
11    the year ending December 31, 2022;
12        (6) 0.67% of cumulative persisting annual savings for
13    the year ending December 31, 2023;
14        (7) 0.83% of cumulative persisting annual savings for
15    the year ending December 31, 2024; and
16        (8) 1.0% of cumulative persisting annual savings for
17    the year ending December 31, 2025 and all subsequent
18    years.
19    (b-25) In the event an electric utility jointly offers an
20energy efficiency measure or program with a gas utility under
21plans approved under this Section and Section 8-104 of this
22Act, the electric utility may continue offering the program,
23including the gas energy efficiency measures, in the event the
24gas utility discontinues funding the program. In that event,
25the energy savings value associated with such other fuels
26shall be converted to electric energy savings on an equivalent

 

 

HB3101- 35 -LRB102 15747 SPS 21113 b

1Btu basis for the premises. However, the electric utility
2shall prioritize programs for low-income residential customers
3to the extent practicable. An electric utility may recover the
4costs of offering the gas energy efficiency measures under
5this subsection (b-25).
6    For those energy efficiency measures or programs that save
7both electricity and other fuels but are not jointly offered
8with a gas utility under plans approved under this Section and
9Section 8-104 or not offered with an affiliated gas utility
10under paragraph (6) of subsection (f) of Section 8-104 of this
11Act, the electric utility may count savings of fuels other
12than electricity toward the achievement of its annual savings
13goal, and the energy savings value associated with such other
14fuels shall be converted to electric energy savings on an
15equivalent Btu basis at the premises.
16    In no event shall more than 10% of each year's applicable
17annual total savings requirement incremental goal as defined
18in paragraph (7.5) (7) of subsection (g) of this Section be met
19through savings of fuels other than electricity.
20    (b-27) Beginning in 2022, an electric utility may offer
21and promote measures that electrify space heating, water
22heating, cooling, drying, cooking, industrial processes, and
23other building and industrial end uses that would otherwise be
24served by combustion of fossil fuel at the premises, provided
25that the electrification measures reduce total energy
26consumption at the premises. The electric utility may count

 

 

HB3101- 36 -LRB102 15747 SPS 21113 b

1the reduction in energy consumption at the premises toward
2achievement of its annual savings goals. The reduction in
3energy consumption at the premises shall be calculated as the
4difference between: (A) the reduction in Btu consumption of
5fossil fuels as a result of electrification, converted to
6kilowatt-hour equivalents by dividing by 3,412 Btu's per
7kilowatt hour; and (B) the increase in kilowatt hours of
8electricity consumption resulting from the displacement of
9fossil fuel consumption as a result of electrification. An
10electric utility may recover the costs of offering and
11promoting electrification measures under this subsection
12(b-27).
13    In no event shall electrification savings counted toward
14each year's applicable annual total savings requirement, as
15defined in paragraph (7.5) of subsection (g) of this Section,
16be greater than:
17        (1) 5% per year for each year from 2022 through 2025;
18        (2) 10% per year for each year from 2026 through 2029;
19    and
20        (3) 15% per year for 2030 and all subsequent years.
21In addition, a minimum of 25% of all electrification savings
22counted toward a utility's applicable annual total savings
23requirement must be from electrification of end uses in
24low-income housing. The limitations on electrification savings
25that may be counted toward a utility's annual savings goals
26are separate from and in addition to the subsection (b-25)

 

 

HB3101- 37 -LRB102 15747 SPS 21113 b

1limitations governing the counting of the other fuel savings
2resulting from efficiency measures and programs.
3    As part of the annual informational filing to the
4Commission that is required under paragraph (9) of subsection
5(g) of this Section, each utility shall identify the specific
6electrification measures offered under this subjection (b-27);
7the quantity of each electrification measure that was
8installed by its customers; the average total cost, average
9utility cost, average reduction in fossil fuel consumption,
10and average increase in electricity consumption associated
11with each electrification measure; the portion of
12installations of each electrification measure that were in
13low-income single-family housing, low-income multifamily
14housing, non-low-income single-family housing, non-low-income
15multifamily housing, commercial buildings, and industrial
16facilities; and the quantity of savings associated with each
17measure category in each customer category that are being
18counted toward the utility's applicable annual total savings
19requirement.
20    (c) Electric utilities shall be responsible for overseeing
21the design, development, and filing of energy efficiency plans
22with the Commission and may, as part of that implementation,
23outsource various aspects of program development and
24implementation. A minimum of 10%, for electric utilities that
25serve more than 3,000,000 retail customers in the State, and a
26minimum of 7%, for electric utilities that serve less than

 

 

HB3101- 38 -LRB102 15747 SPS 21113 b

13,000,000 retail customers but more than 500,000 retail
2customers in the State, of the utility's entire portfolio
3funding level for a given year shall be used to procure
4cost-effective energy efficiency measures from units of local
5government, municipal corporations, school districts, public
6housing, and community college districts, and buildings owned
7by nonprofit organizations, provided that a minimum percentage
8of available funds shall be used to procure energy efficiency
9from public housing, which percentage shall be equal to public
10housing's share of public building energy consumption.
11    The utilities shall also implement energy efficiency
12measures targeted at low-income households, which, for
13purposes of this Section, shall be defined as households at or
14below 80% of area median income, and expenditures to implement
15the measures shall be no less than $40,000,000 $25,000,000 per
16year for electric utilities that serve more than 3,000,000
17retail customers in the State and no less than $13,000,000
18$8,350,000 per year for electric utilities that serve less
19than 3,000,000 retail customers but more than 500,000 retail
20customers in the State. The ratio of spending on efficiency
21programs targeted at low-income multifamily buildings to
22spending on efficiency programs targeted at low-income
23single-family buildings shall be designed to achieve levels of
24savings from each building type that are approximately
25proportional to the magnitude of cost-effective lifetime
26savings potential in each building type.

 

 

HB3101- 39 -LRB102 15747 SPS 21113 b

1    The utilities shall work to bundle low-income energy
2efficiency offerings with other programs that serve low-income
3households to maximize the benefits going to these households.
4The utilities shall market and implement low-income energy
5efficiency programs in coordination with low-income assistance
6programs, Solar for All, and weatherization whenever
7practicable. The program implementer shall walk the customer
8through the enrollment process for any programs for which the
9customer is eligible. The utilities shall also pilot targeting
10customers with high arrearages, high energy intensity (ratio
11of energy usage divided by home or unit square footage), or
12energy assistance programs with energy efficiency offerings,
13and then track reduction in arrearages as a result of the
14targeting. This targeting and bundling of low-income energy
15programs shall be offered to both low-income single-family and
16multifamily customers (owners and residents).
17    The utilities shall also implement a health and safety
18fund of a minimum of 0.5% of the total portfolio budget, for
19electric utilities that serve more than 3,000,000 retail
20customers in the State, and a minimum of 0.5% of the total
21portfolio budget, for electric utilities that serve less than
223,000,000 retail customers but more than 500,000 retail
23customers in the State, of the utility's entire portfolio
24funding level for a given year, that shall be used for the
25purpose of making grants for technical assistance,
26construction, reconstruction, improvement, or repair of

 

 

HB3101- 40 -LRB102 15747 SPS 21113 b

1buildings to facilitate their participation in the energy
2efficiency programs targeted at low-income single-family and
3multifamily households. These funds may also be used for the
4purpose of making grants for technical assistance,
5construction, reconstruction, improvement, or repair of the
6following buildings to facilitate their participation in the
7energy efficiency programs created by this Section: (1)
8buildings that are owned or operated by registered 501(c)(3)
9public charities; and (2) day care centers, day care homes, or
10group day care homes, as defined under 89 Ill. Adm. Code Part
11406, 407, or 408, respectively. Utilities shall also ensure
12that thermal insulating materials used for energy efficiency
13programs targeted at low-income single-family and multifamily
14households do not contain any substance that is a Category 1
15respiratory sensitizer as defined by Appendix A to 29 CFR
161910.1200 (Health Hazard Criteria: A.4 Respiratory or Skin
17Sensitization) that was intentionally added or is present at
18greater than 0.1% (1000 ppm) by weight in the product.
19    Each electric utility shall assess opportunities to
20implement cost-effective energy efficiency measures and
21programs through a public housing authority or authorities
22located in its service territory. If such opportunities are
23identified, the utility shall propose such measures and
24programs to address the opportunities. Expenditures to address
25such opportunities shall be credited toward the minimum
26procurement and expenditure requirements set forth in this

 

 

HB3101- 41 -LRB102 15747 SPS 21113 b

1subsection (c).
2    Implementation of energy efficiency measures and programs
3targeted at low-income households should be contracted, when
4it is practicable, to independent third parties that have
5demonstrated capabilities to serve such households, with a
6preference for not-for-profit entities and government agencies
7that have existing relationships with or experience serving
8low-income communities in the State.
9    Each electric utility shall develop and implement
10reporting procedures that address and assist in determining
11the amount of energy savings that can be applied to the
12low-income procurement and expenditure requirements set forth
13in this subsection (c). Each electric utility shall also track
14the types and quantities or volumes of insulation and air
15sealing materials, and their associated energy saving
16benefits, installed in energy efficiency programs targeted at
17low-income single-family and multifamily households.
18    The electric utilities shall participate in also convene a
19low-income energy efficiency accountability advisory committee
20("the committee"), which will directly inform to assist in the
21design, implementation, and evaluation of the low-income and
22public-housing energy efficiency programs. The committee shall
23be comprised of the electric utilities subject to the
24requirements of this Section, the gas utilities subject to the
25requirements of Section 8-104.1 8-104 of this Act, the
26utilities' low-income energy efficiency implementation

 

 

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1contractors, nonprofit organizations, community action
2agencies, advocacy groups, State and local governmental
3agencies, public-housing organizations, and representatives of
4community-based organizations, especially those living in or
5working with environmental justice communities and BIPOC
6communities. The committee shall be composed of 2
7geographically differentiated subcommittees: one for
8stakeholders in northern Illinois and one for stakeholders in
9central and southern Illinois. The subcommittees shall meet
10together at least twice per year.
11    There shall be one statewide leadership committee led by
12and composed of community-based organizations that are
13representative of BIPOC and environmental justice communities
14and that includes equitable representation from BIPOC
15communities. The leadership committee shall be composed of an
16equal number of representatives from the 2 subcommittees. The
17subcommittees shall address specific programs and issues, with
18the leadership committee convening targeted workgroups as
19needed. The leadership committee may elect to work with an
20independent facilitator to solicit and organize feedback,
21recommendations and meeting participation from a wide variety
22of community-based stakeholders. If a facilitator is used,
23they shall be fair and responsive to the needs of all
24stakeholders involved in the committee.
25     All committee meetings must be accessible, with rotating
26locations if meetings are held in-person, virtual

 

 

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1participation options, and materials and agendas circulated
2well in advance.
3    There shall also be opportunities for direct input by
4committee members outside of committee meetings, such as via
5individual meetings, surveys, emails and calls, to ensure
6robust participation by stakeholders with limited capacity and
7ability to attend committee meetings. Committee meetings shall
8emphasize opportunities to bundle and coordinate delivery of
9low-income energy efficiency with other programs that serve
10low-income communities, such as Solar for All and bill payment
11assistance programs. Meetings shall include educational
12opportunities for stakeholders to learn more about these
13additional offerings, and the committee shall assist in
14figuring out the best methods for coordinated delivery and
15implementation of offerings when serving low-income
16communities. The committee shall directly and equitably
17influence and inform utility low-income and public-housing
18energy efficiency programs and priorities. Participating
19utilities shall implement recommendations from the committee
20whenever possible.
21    Participating utilities shall track and report how input
22from the committee has led to new approaches and changes in
23their energy efficiency portfolios. This reporting shall occur
24at committee meetings and in quarterly energy efficiency
25reports to the Stakeholder Advisory Group and Illinois
26Commerce Commission, and other relevant reporting mechanisms.

 

 

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1Participating utilities shall also report on relevant equity
2data and metrics requested by the committee, such as energy
3burden data, geographic, racial, and other relevant
4demographic data on where programs are being delivered and
5what populations programs are serving.
6    The Illinois Commerce Commission shall oversee and have
7relevant staff participate in the committee. The committee
8shall have a budget of 0.25% of each utility's entire
9efficiency portfolio funding for a given year. The budget
10shall be overseen by the Commission. The budget shall be used
11to provide grants for community-based organizations serving on
12the leadership committee, stipends for community-based
13organizations participating in the committee, grants for
14community-based organizations to do energy efficiency outreach
15and education, and relevant meeting needs as determined by the
16leadership committee. The education and outreach shall
17include, but is not limited to, basic energy efficiency
18education, information about low-income energy efficiency
19programs, and information on the committee's purpose,
20structure, and activities.
21    (d) Notwithstanding any other provision of law to the
22contrary, a utility providing approved energy efficiency
23measures and, if applicable, demand-response measures in the
24State shall be permitted to recover all reasonable and
25prudently incurred costs of those measures from all retail
26customers, except as provided in subsection (l) of this

 

 

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1Section, as follows, provided that nothing in this subsection
2(d) permits the double recovery of such costs from customers:
3        (1) The utility may recover its costs through an
4    automatic adjustment clause tariff filed with and approved
5    by the Commission. The tariff shall be established outside
6    the context of a general rate case. Each year the
7    Commission shall initiate a review to reconcile any
8    amounts collected with the actual costs and to determine
9    the required adjustment to the annual tariff factor to
10    match annual expenditures. To enable the financing of the
11    incremental capital expenditures, including regulatory
12    assets, for electric utilities that serve less than
13    3,000,000 retail customers but more than 500,000 retail
14    customers in the State, the utility's actual year-end
15    capital structure that includes a common equity ratio,
16    excluding goodwill, of up to and including 50% of the
17    total capital structure shall be deemed reasonable and
18    used to set rates.
19        (2) A utility may recover its costs through an energy
20    efficiency formula rate approved by the Commission under a
21    filing under subsections (f) and (g) of this Section,
22    which shall specify the cost components that form the
23    basis of the rate charged to customers with sufficient
24    specificity to operate in a standardized manner and be
25    updated annually with transparent information that
26    reflects the utility's actual costs to be recovered during

 

 

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1    the applicable rate year, which is the period beginning
2    with the first billing day of January and extending
3    through the last billing day of the following December.
4    The energy efficiency formula rate shall be implemented
5    through a tariff filed with the Commission under
6    subsections (f) and (g) of this Section that is consistent
7    with the provisions of this paragraph (2) and that shall
8    be applicable to all delivery services customers. The
9    Commission shall conduct an investigation of the tariff in
10    a manner consistent with the provisions of this paragraph
11    (2), subsections (f) and (g) of this Section, and the
12    provisions of Article IX of this Act to the extent they do
13    not conflict with this paragraph (2). The energy
14    efficiency formula rate approved by the Commission shall
15    remain in effect at the discretion of the utility and
16    shall do the following:
17            (A) Provide for the recovery of the utility's
18        actual costs incurred under this Section that are
19        prudently incurred and reasonable in amount consistent
20        with Commission practice and law. The sole fact that a
21        cost differs from that incurred in a prior calendar
22        year or that an investment is different from that made
23        in a prior calendar year shall not imply the
24        imprudence or unreasonableness of that cost or
25        investment.
26            (B) Reflect the utility's actual year-end capital

 

 

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1        structure for the applicable calendar year, excluding
2        goodwill, subject to a determination of prudence and
3        reasonableness consistent with Commission practice and
4        law. To enable the financing of the incremental
5        capital expenditures, including regulatory assets, for
6        electric utilities that serve less than 3,000,000
7        retail customers but more than 500,000 retail
8        customers in the State, a participating electric
9        utility's actual year-end capital structure that
10        includes a common equity ratio, excluding goodwill, of
11        up to and including 50% of the total capital structure
12        shall be deemed reasonable and used to set rates.
13            (C) Include a cost of equity, which shall be
14        calculated as the sum of the following:
15                (i) the average for the applicable calendar
16            year of the monthly average yields of 30-year U.S.
17            Treasury bonds published by the Board of Governors
18            of the Federal Reserve System in its weekly H.15
19            Statistical Release or successor publication; and
20                (ii) 580 basis points.
21            At such time as the Board of Governors of the
22        Federal Reserve System ceases to include the monthly
23        average yields of 30-year U.S. Treasury bonds in its
24        weekly H.15 Statistical Release or successor
25        publication, the monthly average yields of the U.S.
26        Treasury bonds then having the longest duration

 

 

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1        published by the Board of Governors in its weekly H.15
2        Statistical Release or successor publication shall
3        instead be used for purposes of this paragraph (2).
4            (D) Permit and set forth protocols, subject to a
5        determination of prudence and reasonableness
6        consistent with Commission practice and law, for the
7        following:
8                (i) recovery of incentive compensation expense
9            that is based on the achievement of operational
10            metrics, including metrics related to budget
11            controls, outage duration and frequency, safety,
12            customer service, efficiency and productivity, and
13            environmental compliance; however, this protocol
14            shall not apply if such expense related to costs
15            incurred under this Section is recovered under
16            Article IX or Section 16-108.5 of this Act;
17            incentive compensation expense that is based on
18            net income or an affiliate's earnings per share
19            shall not be recoverable under the energy
20            efficiency formula rate;
21                (ii) recovery of pension and other
22            post-employment benefits expense, provided that
23            such costs are supported by an actuarial study;
24            however, this protocol shall not apply if such
25            expense related to costs incurred under this
26            Section is recovered under Article IX or Section

 

 

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1            16-108.5 of this Act;
2                (iii) recovery of existing regulatory assets
3            over the periods previously authorized by the
4            Commission;
5                (iv) as described in subsection (e),
6            amortization of costs incurred under this Section;
7            and
8                (v) projected, weather normalized billing
9            determinants for the applicable rate year.
10            (E) Provide for an annual reconciliation, as
11        described in paragraph (3) of this subsection (d),
12        less any deferred taxes related to the reconciliation,
13        with interest at an annual rate of return equal to the
14        utility's weighted average cost of capital, including
15        a revenue conversion factor calculated to recover or
16        refund all additional income taxes that may be payable
17        or receivable as a result of that return, of the energy
18        efficiency revenue requirement reflected in rates for
19        each calendar year, beginning with the calendar year
20        in which the utility files its energy efficiency
21        formula rate tariff under this paragraph (2), with
22        what the revenue requirement would have been had the
23        actual cost information for the applicable calendar
24        year been available at the filing date.
25        The utility shall file, together with its tariff, the
26    projected costs to be incurred by the utility during the

 

 

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1    rate year under the utility's multi-year plan approved
2    under subsections (f) and (g) of this Section, including,
3    but not limited to, the projected capital investment costs
4    and projected regulatory asset balances with
5    correspondingly updated depreciation and amortization
6    reserves and expense, that shall populate the energy
7    efficiency formula rate and set the initial rates under
8    the formula.
9        The Commission shall review the proposed tariff in
10    conjunction with its review of a proposed multi-year plan,
11    as specified in paragraph (5) of subsection (g) of this
12    Section. The review shall be based on the same evidentiary
13    standards, including, but not limited to, those concerning
14    the prudence and reasonableness of the costs incurred by
15    the utility, the Commission applies in a hearing to review
16    a filing for a general increase in rates under Article IX
17    of this Act. The initial rates shall take effect beginning
18    with the January monthly billing period following the
19    Commission's approval.
20        The tariff's rate design and cost allocation across
21    customer classes shall be consistent with the utility's
22    automatic adjustment clause tariff in effect on June 1,
23    2017 (the effective date of Public Act 99-906); however,
24    the Commission may revise the tariff's rate design and
25    cost allocation in subsequent proceedings under paragraph
26    (3) of this subsection (d).

 

 

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1        If the energy efficiency formula rate is terminated,
2    the then current rates shall remain in effect until such
3    time as the energy efficiency costs are incorporated into
4    new rates that are set under this subsection (d) or
5    Article IX of this Act, subject to retroactive rate
6    adjustment, with interest, to reconcile rates charged with
7    actual costs.
8        (3) The provisions of this paragraph (3) shall only
9    apply to an electric utility that has elected to file an
10    energy efficiency formula rate under paragraph (2) of this
11    subsection (d). Subsequent to the Commission's issuance of
12    an order approving the utility's energy efficiency formula
13    rate structure and protocols, and initial rates under
14    paragraph (2) of this subsection (d), the utility shall
15    file, on or before June 1 of each year, with the Chief
16    Clerk of the Commission its updated cost inputs to the
17    energy efficiency formula rate for the applicable rate
18    year and the corresponding new charges, as well as the
19    information described in paragraph (9) of subsection (g)
20    of this Section. Each such filing shall conform to the
21    following requirements and include the following
22    information:
23            (A) The inputs to the energy efficiency formula
24        rate for the applicable rate year shall be based on the
25        projected costs to be incurred by the utility during
26        the rate year under the utility's multi-year plan

 

 

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1        approved under subsections (f) and (g) of this
2        Section, including, but not limited to, projected
3        capital investment costs and projected regulatory
4        asset balances with correspondingly updated
5        depreciation and amortization reserves and expense.
6        The filing shall also include a reconciliation of the
7        energy efficiency revenue requirement that was in
8        effect for the prior rate year (as set by the cost
9        inputs for the prior rate year) with the actual
10        revenue requirement for the prior rate year
11        (determined using a year-end rate base) that uses
12        amounts reflected in the applicable FERC Form 1 that
13        reports the actual costs for the prior rate year. Any
14        over-collection or under-collection indicated by such
15        reconciliation shall be reflected as a credit against,
16        or recovered as an additional charge to, respectively,
17        with interest calculated at a rate equal to the
18        utility's weighted average cost of capital approved by
19        the Commission for the prior rate year, the charges
20        for the applicable rate year. Such over-collection or
21        under-collection shall be adjusted to remove any
22        deferred taxes related to the reconciliation, for
23        purposes of calculating interest at an annual rate of
24        return equal to the utility's weighted average cost of
25        capital approved by the Commission for the prior rate
26        year, including a revenue conversion factor calculated

 

 

HB3101- 53 -LRB102 15747 SPS 21113 b

1        to recover or refund all additional income taxes that
2        may be payable or receivable as a result of that
3        return. Each reconciliation shall be certified by the
4        participating utility in the same manner that FERC
5        Form 1 is certified. The filing shall also include the
6        charge or credit, if any, resulting from the
7        calculation required by subparagraph (E) of paragraph
8        (2) of this subsection (d).
9            Notwithstanding any other provision of law to the
10        contrary, the intent of the reconciliation is to
11        ultimately reconcile both the revenue requirement
12        reflected in rates for each calendar year, beginning
13        with the calendar year in which the utility files its
14        energy efficiency formula rate tariff under paragraph
15        (2) of this subsection (d), with what the revenue
16        requirement determined using a year-end rate base for
17        the applicable calendar year would have been had the
18        actual cost information for the applicable calendar
19        year been available at the filing date.
20            For purposes of this Section, "FERC Form 1" means
21        the Annual Report of Major Electric Utilities,
22        Licensees and Others that electric utilities are
23        required to file with the Federal Energy Regulatory
24        Commission under the Federal Power Act, Sections 3,
25        4(a), 304 and 209, modified as necessary to be
26        consistent with 83 Ill. Admin. Code Part 415 as of May

 

 

HB3101- 54 -LRB102 15747 SPS 21113 b

1        1, 2011. Nothing in this Section is intended to allow
2        costs that are not otherwise recoverable to be
3        recoverable by virtue of inclusion in FERC Form 1.
4            (B) The new charges shall take effect beginning on
5        the first billing day of the following January billing
6        period and remain in effect through the last billing
7        day of the next December billing period regardless of
8        whether the Commission enters upon a hearing under
9        this paragraph (3).
10            (C) The filing shall include relevant and
11        necessary data and documentation for the applicable
12        rate year. Normalization adjustments shall not be
13        required.
14        Within 45 days after the utility files its annual
15    update of cost inputs to the energy efficiency formula
16    rate, the Commission shall with reasonable notice,
17    initiate a proceeding concerning whether the projected
18    costs to be incurred by the utility and recovered during
19    the applicable rate year, and that are reflected in the
20    inputs to the energy efficiency formula rate, are
21    consistent with the utility's approved multi-year plan
22    under subsections (f) and (g) of this Section and whether
23    the costs incurred by the utility during the prior rate
24    year were prudent and reasonable. The Commission shall
25    also have the authority to investigate the information and
26    data described in paragraph (9) of subsection (g) of this

 

 

HB3101- 55 -LRB102 15747 SPS 21113 b

1    Section, including the proposed adjustment to the
2    utility's return on equity component of its weighted
3    average cost of capital. During the course of the
4    proceeding, each objection shall be stated with
5    particularity and evidence provided in support thereof,
6    after which the utility shall have the opportunity to
7    rebut the evidence. Discovery shall be allowed consistent
8    with the Commission's Rules of Practice, which Rules of
9    Practice shall be enforced by the Commission or the
10    assigned administrative law judge. The Commission shall
11    apply the same evidentiary standards, including, but not
12    limited to, those concerning the prudence and
13    reasonableness of the costs incurred by the utility,
14    during the proceeding as it would apply in a proceeding to
15    review a filing for a general increase in rates under
16    Article IX of this Act. The Commission shall not, however,
17    have the authority in a proceeding under this paragraph
18    (3) to consider or order any changes to the structure or
19    protocols of the energy efficiency formula rate approved
20    under paragraph (2) of this subsection (d). In a
21    proceeding under this paragraph (3), the Commission shall
22    enter its order no later than the earlier of 195 days after
23    the utility's filing of its annual update of cost inputs
24    to the energy efficiency formula rate or December 15. The
25    utility's proposed return on equity calculation, as
26    described in paragraphs (7) through (9) of subsection (g)

 

 

HB3101- 56 -LRB102 15747 SPS 21113 b

1    of this Section, shall be deemed the final, approved
2    calculation on December 15 of the year in which it is filed
3    unless the Commission enters an order on or before
4    December 15, after notice and hearing, that modifies such
5    calculation consistent with this Section. The Commission's
6    determinations of the prudence and reasonableness of the
7    costs incurred, and determination of such return on equity
8    calculation, for the applicable calendar year shall be
9    final upon entry of the Commission's order and shall not
10    be subject to reopening, reexamination, or collateral
11    attack in any other Commission proceeding, case, docket,
12    order, rule, or regulation; however, nothing in this
13    paragraph (3) shall prohibit a party from petitioning the
14    Commission to rehear or appeal to the courts the order
15    under the provisions of this Act.
16    (e) Beginning on June 1, 2017 (the effective date of
17Public Act 99-906), a utility subject to the requirements of
18this Section may elect to defer, as a regulatory asset, up to
19the full amount of its expenditures incurred under this
20Section for each annual period, including, but not limited to,
21any expenditures incurred above the funding level set by
22subsection (f) of this Section for a given year. The total
23expenditures deferred as a regulatory asset in a given year
24shall be amortized and recovered over a period that is equal to
25the weighted average of the energy efficiency measure lives
26implemented for that year that are reflected in the regulatory

 

 

HB3101- 57 -LRB102 15747 SPS 21113 b

1asset. The unamortized balance shall be recognized as of
2December 31 for a given year. The utility shall also earn a
3return on the total of the unamortized balances of all of the
4energy efficiency regulatory assets, less any deferred taxes
5related to those unamortized balances, at an annual rate equal
6to the utility's weighted average cost of capital that
7includes, based on a year-end capital structure, the utility's
8actual cost of debt for the applicable calendar year and a cost
9of equity, which shall be calculated as the sum of the (i) the
10average for the applicable calendar year of the monthly
11average yields of 30-year U.S. Treasury bonds published by the
12Board of Governors of the Federal Reserve System in its weekly
13H.15 Statistical Release or successor publication; and (ii)
14580 basis points, including a revenue conversion factor
15calculated to recover or refund all additional income taxes
16that may be payable or receivable as a result of that return.
17Capital investment costs shall be depreciated and recovered
18over their useful lives consistent with generally accepted
19accounting principles. The weighted average cost of capital
20shall be applied to the capital investment cost balance, less
21any accumulated depreciation and accumulated deferred income
22taxes, as of December 31 for a given year.
23    When an electric utility creates a regulatory asset under
24the provisions of this Section, the costs are recovered over a
25period during which customers also receive a benefit which is
26in the public interest. Accordingly, it is the intent of the

 

 

HB3101- 58 -LRB102 15747 SPS 21113 b

1General Assembly that an electric utility that elects to
2create a regulatory asset under the provisions of this Section
3shall recover all of the associated costs as set forth in this
4Section. After the Commission has approved the prudence and
5reasonableness of the costs that comprise the regulatory
6asset, the electric utility shall be permitted to recover all
7such costs, and the value and recoverability through rates of
8the associated regulatory asset shall not be limited, altered,
9impaired, or reduced.
10    (f) Beginning in 2017, each electric utility shall file an
11energy efficiency plan with the Commission to meet the energy
12efficiency standards for the next applicable multi-year period
13beginning January 1 of the year following the filing,
14according to the schedule set forth in paragraphs (1) through
15(3) of this subsection (f). If a utility does not file such a
16plan on or before the applicable filing deadline for the plan,
17it shall face a penalty of $100,000 per day until the plan is
18filed.
19        (1) No later than 30 days after June 1, 2017 (the
20    effective date of Public Act 99-906), each electric
21    utility shall file a 4-year energy efficiency plan
22    commencing on January 1, 2018 that is designed to achieve
23    the cumulative persisting annual savings goals specified
24    in paragraphs (1) through (4) of subsection (b-5) of this
25    Section or in paragraphs (1) through (4) of subsection
26    (b-15) of this Section, as applicable, through

 

 

HB3101- 59 -LRB102 15747 SPS 21113 b

1    implementation of energy efficiency measures; however, the
2    goals may be reduced if the utility's expenditures are
3    limited pursuant to subsection (m) of this Section or, for
4    a utility that serves less than 3,000,000 retail
5    customers, if each of the following conditions are met:
6    (A) the plan's analysis and forecasts of the utility's
7    ability to acquire energy savings demonstrate that
8    achievement of such goals is not cost effective; and (B)
9    the amount of energy savings achieved by the utility as
10    determined by the independent evaluator for the most
11    recent year for which savings have been evaluated
12    preceding the plan filing was less than the average annual
13    amount of savings required to achieve the goals for the
14    applicable 4-year plan period. Except as provided in
15    subsection (m) of this Section, annual increases in
16    cumulative persisting annual savings goals during the
17    applicable 4-year plan period shall not be reduced to
18    amounts that are less than the maximum amount of
19    cumulative persisting annual savings that is forecast to
20    be cost-effectively achievable during the 4-year plan
21    period. The Commission shall review any proposed goal
22    reduction as part of its review and approval of the
23    utility's proposed plan.
24        (2) No later than March 1, 2021, each electric utility
25    shall file a 4-year energy efficiency plan commencing on
26    January 1, 2022 that is designed to achieve the cumulative

 

 

HB3101- 60 -LRB102 15747 SPS 21113 b

1    persisting annual savings goals specified in paragraphs
2    (5) through (8) of subsection (b-5) of this Section or in
3    paragraphs (5) through (8) of subsection (b-15) of this
4    Section, as applicable, through implementation of energy
5    efficiency measures; however, the goals may be reduced if
6    either (1) clear and convincing evidence demonstrates,
7    through independent analysis, that the expenditure limits
8    in subsection (m) of this Section preclude full
9    achievement of the goals or (2) the utility's expenditures
10    are limited pursuant to subsection (m) of this Section or,
11    each of the following conditions are met: (A) the plan's
12    analysis and forecasts of the utility's ability to acquire
13    energy savings demonstrate by clear and convincing
14    evidence and through independent analysis that achievement
15    of such goals is not cost effective; and (B) the amount of
16    energy savings achieved by the utility as determined by
17    the independent evaluator for the most recent year for
18    which savings have been evaluated preceding the plan
19    filing was less than the average annual amount of savings
20    required to achieve the goals for the applicable 4-year
21    plan period. If there is any significant uncertainty
22    regarding whether achieving the savings goals specified in
23    paragraph (b-5) or (b-15) of this Section is possible both
24    cost-effectively and within the expenditure limits in
25    subsection (m), such savings goals shall not be reduced.
26    Except as provided in subsection (m) of this Section,

 

 

HB3101- 61 -LRB102 15747 SPS 21113 b

1    annual increases in cumulative persisting annual savings
2    goals during the applicable 4-year plan period shall not
3    be reduced to amounts that are less than the maximum
4    amount of cumulative persisting annual savings that is
5    forecast to be cost-effectively achievable during the
6    4-year plan period. The Commission shall review any
7    proposed goal reduction as part of its review and approval
8    of the utility's proposed plan, taking into account the
9    results of the potential study required by subsection
10    (f-5) of this Section.
11        (3) No later than March 1, 2025, each electric utility
12    shall file a 4-year 5-year energy efficiency plan
13    commencing on January 1, 2026 that is designed to achieve
14    the cumulative persisting annual savings goals specified
15    in paragraphs (9) through (12) (13) of subsection (b-5) of
16    this Section or in paragraphs (9) through (12) (13) of
17    subsection (b-15) of this Section, as applicable, through
18    implementation of energy efficiency measures; however, the
19    goals may be reduced if either (1) clear and convincing
20    evidence demonstrates, through independent analysis, that
21    the expenditure limits in subsection (m) of this Section
22    preclude full achievement of the goals or (2) the
23    utility's expenditures are limited pursuant to subsection
24    (m) of this Section or, each of the following conditions
25    are met: (A) the plan's analysis and forecasts of the
26    utility's ability to acquire energy savings demonstrate by

 

 

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1    clear and convincing evidence and through independent
2    analysis that achievement of such goals is not cost
3    effective; and (B) the amount of energy savings achieved
4    by the utility as determined by the independent evaluator
5    for the most recent year for which savings have been
6    evaluated preceding the plan filing was less than the
7    average annual amount of savings required to achieve the
8    goals for the applicable 4-year 5-year plan period. If
9    there is any significant uncertainty regarding whether
10    achieving the savings goals specified in paragraphs (b-5)
11    or (b-15) of this Section is possible both
12    cost-effectively and within the expenditure limits in
13    subsection (m), such savings goals shall not be reduced.
14    Except as provided in subsection (m) of this Section,
15    annual increases in cumulative persisting annual savings
16    goals during the applicable 4-year 5-year plan period
17    shall not be reduced to amounts that are less than the
18    maximum amount of cumulative persisting annual savings
19    that is forecast to be cost-effectively achievable during
20    the 4-year 5-year plan period. The Commission shall review
21    any proposed goal reduction as part of its review and
22    approval of the utility's proposed plan, taking into
23    account the results of the potential study required by
24    subsection (f-5) of this Section.
25        (4) No later than March 1, 2029, and every 4 years
26    thereafter, each electric utility shall file a 4-year

 

 

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1    energy efficiency plan commencing on January 1, 2030, and
2    every 4 years thereafter, respectively, that is designed
3    to achieve the cumulative persisting annual savings goals
4    established by the Illinois Commerce Commission pursuant
5    to direction of subsections (b-5) and (b-15) of this
6    Section, as applicable, through implementation of energy
7    efficiency measures; however, the goals may be reduced if
8    either (1) clear and convincing evidence and independent
9    analysis demonstrates that the expenditure limits in
10    subsection (m) of this Section preclude full achievement
11    of the goals or (2) each of the following conditions are
12    met: (A) the plan's analysis and forecasts of the
13    utility's ability to acquire energy savings demonstrate by
14    clear and convincing evidence and through independent
15    analysis that achievement of such goals is not
16    cost-effective; and (B) the amount of energy savings
17    achieved by the utility as determined by the independent
18    evaluator for the most recent year for which savings have
19    been evaluated preceding the plan filing was less than the
20    average annual amount of savings required to achieve the
21    goals for the applicable 4-year plan period. If there is
22    any significant uncertainty regarding whether achieving
23    the savings goals specified in paragraphs (b-5) or (b-15)
24    of this Section is possible both cost-effectively and
25    within the expenditure limits in subsection (m), such
26    savings goals shall not be reduced. Except as provided in

 

 

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1    subsection (m) of this Section, annual increases in
2    cumulative persisting annual savings goals during the
3    applicable 4-year plan period shall not be reduced to
4    amounts that are less than the maximum amount of
5    cumulative persisting annual savings that is forecast to
6    be cost-effectively achievable during the 4-year plan
7    period. The Commission shall review any proposed goal
8    reduction as part of its review and approval of the
9    utility's proposed plan.
10    Each utility's plan shall set forth the utility's
11proposals to meet the energy efficiency standards identified
12in subsection (b-5) or (b-15), as applicable and as such
13standards may have been modified under this subsection (f),
14taking into account the unique circumstances of the utility's
15service territory and results of an energy efficiency
16potential study as described in subsection (f-5) of this
17Section. For those plans commencing on January 1, 2018, the
18Commission shall seek public comment on the utility's plan and
19shall issue an order approving or disapproving each plan no
20later than 105 days after June 1, 2017 (the effective date of
21Public Act 99-906). For those plans commencing after December
2231, 2021, the Commission shall seek public comment on the
23utility's plan and shall issue an order approving or
24disapproving each plan within 6 months after its submission.
25If the Commission disapproves a plan, the Commission shall,
26within 30 days, describe in detail the reasons for the

 

 

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1disapproval and describe a path by which the utility may file a
2revised draft of the plan to address the Commission's concerns
3satisfactorily. If the utility does not refile with the
4Commission within 60 days, the utility shall be subject to
5penalties at a rate of $100,000 per day until the plan is
6filed. This process shall continue, and penalties shall
7accrue, until the utility has successfully filed a portfolio
8of energy efficiency and demand-response measures. Penalties
9shall be deposited into the Energy Efficiency Trust Fund.
10    (f-5) Energy efficiency potential study. An energy
11efficiency potential study shall be commissioned and overseen
12by the Illinois Commerce Commission. The potential study shall
13be a dual fuel study, addressing both gas and electric
14efficiency potential, such that the requirements both in this
15subsection (f-5) and in subsection (j-5) of Section 8-104.1
16are met in an integrated and cost-efficient manner. The
17potential study shall be reviewed as part of the approval of a
18utility's plan filed pursuant to subsection (f) of this
19Section. The potential study shall be designed and conducted
20with input from a Potential Study Stakeholder Committee
21established by the Commission. This Committee shall be
22composed of representatives from each electric utility, the
23Illinois Attorney General's office, at least 2 environmental
24stakeholders, at least one community-based organization, and
25additional parties representing consumers. The Committee shall
26provide input, at a minimum, into the scope of work for the

 

 

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1studies, the selection of vendors to perform the studies in
2accordance with appropriate confidentiality and conflict of
3interest provisions, and draft work products. The Committee
4shall make best efforts to achieve consensus on the key
5elements of the potential study, including:
6        (i) savings potential from efficiency measures and
7    program concepts that are known at the time of the study;
8        (ii) likely emergence of new technology or new program
9    concepts that could emerge;
10        (iii) likely savings potential from efficiency
11    measures that may be unique to individual industries or
12    individual facilities; and
13        (iv) the experience of other similar utilities, areas
14    and jurisdictions in maximizing achievement of
15    cost-effective savings.
16    When the Committee is not able to reach consensus, the
17Commission shall make the final decision.
18    (g) In submitting proposed plans and funding levels under
19subsection (f) of this Section to meet the savings goals
20identified in subsection (b-5) or (b-15) of this Section, as
21applicable, the utility shall:
22        (1) Demonstrate that its proposed energy efficiency
23    measures will achieve the applicable requirements that are
24    identified in subsection (b-5) or (b-15) of this Section,
25    as modified by subsection (f) of this Section.
26        (2) (Blank). Present specific proposals to implement

 

 

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1    new building and appliance standards that have been placed
2    into effect.
3        (2.5) Demonstrate consideration of program options for
4    (A) advancing new building codes, appliance standards, and
5    municipal regulations governing existing and new building
6    efficiency improvements and (B) supporting efforts to
7    improve compliance with new building codes, appliance
8    standards and municipal regulations, as potentially
9    cost-effective means of acquiring energy savings to count
10    toward savings goals.
11        (3) Demonstrate that its overall portfolio of
12    measures, not including low-income programs described in
13    subsection (c) of this Section, is cost-effective using
14    the total resource cost test or complies with paragraphs
15    (1) through (3) of subsection (f) of this Section and
16    represents a diverse cross-section of opportunities for
17    customers of all rate classes, other than those customers
18    described in subsection (l) of this Section, to
19    participate in the programs. Individual measures need not
20    be cost effective.
21        (3.5) Demonstrate that the utility's plan integrates
22    the delivery of energy efficiency programs with natural
23    gas efficiency programs, programs promoting distributed
24    solar, programs promoting demand response and other
25    efforts to address bill payment issues, including, but not
26    limited to, LIHEAP and the Percentage of Income Payment

 

 

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1    Plan, to the extent such integration is practical and has
2    the potential to enhance customer engagement, minimize
3    market confusion, or reduce administrative costs.
4        (4) Present a third-party energy efficiency
5    implementation program subject to the following
6    requirements:
7            (A) beginning with the year commencing January 1,
8        2019, electric utilities that serve more than
9        3,000,000 retail customers in the State shall fund
10        third-party energy efficiency programs in an amount
11        that is no less than $25,000,000 per year, and
12        electric utilities that serve less than 3,000,000
13        retail customers but more than 500,000 retail
14        customers in the State shall fund third-party energy
15        efficiency programs in an amount that is no less than
16        $8,350,000 per year;
17            (B) during 2018, the utility shall conduct a
18        solicitation process for purposes of requesting
19        proposals from third-party vendors for those
20        third-party energy efficiency programs to be offered
21        during one or more of the years commencing January 1,
22        2019, January 1, 2020, and January 1, 2021; for those
23        multi-year plans commencing on January 1, 2022 and
24        January 1, 2026, the utility shall conduct a
25        solicitation process during 2021 and 2025,
26        respectively, for purposes of requesting proposals

 

 

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1        from third-party vendors for those third-party energy
2        efficiency programs to be offered during one or more
3        years of the respective multi-year plan period; for
4        each solicitation process, the utility shall identify
5        the sector, technology, or geographical area for which
6        it is seeking requests for proposals; the solicitation
7        process must be either for programs that fill gaps in
8        the utility's program portfolio or for programs that
9        target business sectors, building types, geographies,
10        or other specific parts of its customer base with
11        initiatives that would be more effective at reaching
12        these customer segments than the utilities' programs
13        filed in its energy efficiency plans;
14            (C) the utility shall propose the bidder
15        qualifications, performance measurement process, and
16        contract structure, which must include a performance
17        payment mechanism and general terms and conditions;
18        the proposed qualifications, process, and structure
19        shall be subject to Commission approval; and
20            (D) the utility shall retain an independent third
21        party to score the proposals received through the
22        solicitation process described in this paragraph (4),
23        rank them according to their cost per lifetime
24        kilowatt-hours saved, and assemble the portfolio of
25        third-party programs.
26        The electric utility shall recover all costs

 

 

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1    associated with Commission-approved, third-party
2    administered programs regardless of the success of those
3    programs.
4        (4.5) Implement cost-effective demand-response
5    measures to reduce peak demand by 0.1% over the prior year
6    for eligible retail customers, as defined in Section
7    16-111.5 of this Act, and for customers that elect hourly
8    service from the utility pursuant to Section 16-107 of
9    this Act, provided those customers have not been declared
10    competitive. This requirement continues until December 31,
11    2026.
12        (5) Include a proposed or revised cost-recovery tariff
13    mechanism, as provided for under subsection (d) of this
14    Section, to fund the proposed energy efficiency and
15    demand-response measures and to ensure the recovery of the
16    prudently and reasonably incurred costs of
17    Commission-approved programs.
18        (6) Provide for an annual independent evaluation of
19    the performance of the cost-effectiveness of the utility's
20    portfolio of measures, as well as a full review of the
21    multi-year plan results of the broader net program impacts
22    and, to the extent practical, for adjustment of the
23    measures on a going-forward basis as a result of the
24    evaluations. The resources dedicated to evaluation shall
25    not exceed 3% of portfolio resources in any given year.
26        (7) For electric utilities that serve more than

 

 

HB3101- 71 -LRB102 15747 SPS 21113 b

1    3,000,000 retail customers in the State:
2            (A) Through December 31, 2025, provide for an
3        adjustment to the return on equity component of the
4        utility's weighted average cost of capital calculated
5        under subsection (d) of this Section:
6                (i) If the independent evaluator determines
7            that the utility achieved a cumulative persisting
8            annual savings that is less than the applicable
9            annual incremental goal, then the return on equity
10            component shall be reduced by a maximum of 200
11            basis points in the event that the utility
12            achieved no more than 75% of such goal. If the
13            utility achieved more than 75% of the applicable
14            annual incremental goal but less than 100% of such
15            goal, then the return on equity component shall be
16            reduced by 8 basis points for each percent by
17            which the utility failed to achieve the goal.
18                (ii) If the independent evaluator determines
19            that the utility achieved a cumulative persisting
20            annual savings that is more than the applicable
21            annual incremental goal, then the return on equity
22            component shall be increased by a maximum of 200
23            basis points in the event that the utility
24            achieved at least 125% of such goal. If the
25            utility achieved more than 100% of the applicable
26            annual incremental goal but less than 125% of such

 

 

HB3101- 72 -LRB102 15747 SPS 21113 b

1            goal, then the return on equity component shall be
2            increased by 8 basis points for each percent by
3            which the utility achieved above the goal. If the
4            applicable annual incremental goal was reduced
5            under paragraphs (1) or (2) of subsection (f) of
6            this Section, then the following adjustments shall
7            be made to the calculations described in this item
8            (ii):
9                    (aa) the calculation for determining
10                achievement that is at least 125% of the
11                applicable annual incremental goal shall use
12                the unreduced applicable annual incremental
13                goal to set the value; and
14                    (bb) the calculation for determining
15                achievement that is less than 125% but more
16                than 100% of the applicable annual incremental
17                goal shall use the reduced applicable annual
18                incremental goal to set the value for 100%
19                achievement of the goal and shall use the
20                unreduced goal to set the value for 125%
21                achievement. The 8 basis point value shall
22                also be modified, as necessary, so that the
23                200 basis points are evenly apportioned among
24                each percentage point value between 100% and
25                125% achievement.
26            (B) For the period January 1, 2026 through

 

 

HB3101- 73 -LRB102 15747 SPS 21113 b

1        December 31, 2029 and in all subsequent 4-year periods
2        2030, provide for an adjustment to the return on
3        equity component of the utility's weighted average
4        cost of capital calculated under subsection (d) of
5        this Section:
6                (i) If the independent evaluator determines
7            that the utility achieved a cumulative persisting
8            annual savings that is less than the applicable
9            annual incremental goal, then the return on equity
10            component shall be reduced by a maximum of 200
11            basis points in the event that the utility
12            achieved no more than 66% of such goal. If the
13            utility achieved more than 66% of the applicable
14            annual incremental goal but less than 100% of such
15            goal, then the return on equity component shall be
16            reduced by 6 basis points for each percent by
17            which the utility failed to achieve the goal.
18                (ii) If the independent evaluator determines
19            that the utility achieved a cumulative persisting
20            annual savings that is more than the applicable
21            annual incremental goal, then the return on equity
22            component shall be increased by a maximum of 200
23            basis points in the event that the utility
24            achieved at least 134% of such goal. If the
25            utility achieved more than 100% of the applicable
26            annual incremental goal but less than 134% of such

 

 

HB3101- 74 -LRB102 15747 SPS 21113 b

1            goal, then the return on equity component shall be
2            increased by 6 basis points for each percent by
3            which the utility achieved above the goal. If the
4            applicable annual incremental goal was reduced
5            under paragraph (3) of subsection (f) of this
6            Section, then the following adjustments shall be
7            made to the calculations described in this item
8            (ii):
9                    (aa) the calculation for determining
10                achievement that is at least 134% of the
11                applicable annual incremental goal shall use
12                the unreduced applicable annual incremental
13                goal to set the value; and
14                    (bb) the calculation for determining
15                achievement that is less than 134% but more
16                than 100% of the applicable annual incremental
17                goal shall use the reduced applicable annual
18                incremental goal to set the value for 100%
19                achievement of the goal and shall use the
20                unreduced goal to set the value for 134%
21                achievement. The 6 basis point value shall
22                also be modified, as necessary, so that the
23                200 basis points are evenly apportioned among
24                each percentage point value between 100% and
25                134% achievement.
26            (C) Notwithstanding the provisions of

 

 

HB3101- 75 -LRB102 15747 SPS 21113 b

1        subparagraphs (A) and (B) of this paragraph (7), if
2        the applicable annual incremental goal for an electric
3        utility is ever less than 0.6% of deemed average
4        weather normalized sales of electric power and energy
5        during calendar years 2014, 2015, and 2016, an
6        adjustment to the return on equity component of the
7        utility's weighted average cost of capital calculated
8        under subsection (d) of this Section shall be made as
9        follows:
10                (i) If the independent evaluator determines
11            that the utility achieved a cumulative persisting
12            annual savings that is less than would have been
13            achieved had the applicable annual incremental
14            goal been achieved, then the return on equity
15            component shall be reduced by a maximum of 200
16            basis points if the utility achieved no more than
17            75% of its applicable annual total savings
18            requirement as defined in paragraph (7.5) of this
19            subsection. If the utility achieved more than 75%
20            of the applicable annual total savings requirement
21            but less than 100% of such goal, then the return on
22            equity component shall be reduced by 8 basis
23            points for each percent by which the utility
24            failed to achieve the goal.
25                (ii) If the independent evaluator determines
26            that the utility achieved a cumulative persisting

 

 

HB3101- 76 -LRB102 15747 SPS 21113 b

1            annual savings that is more than would have been
2            achieved had the applicable annual incremental
3            goal been achieved, then the return on equity
4            component shall be increased by a maximum of 200
5            basis points if the utility achieved at least 125%
6            of its applicable annual total savings
7            requirement. If the utility achieved more than
8            100% of the applicable annual total savings
9            requirement but less than 125% of such goal, then
10            the return on equity component shall be increased
11            by 8 basis points for each percent by which the
12            utility achieved above the applicable annual total
13            savings requirement. If the applicable annual
14            incremental goal was reduced under paragraphs (1)
15            or (2) of subsection (f) of this Section, then the
16            following adjustments shall be made to the
17            calculations described in this item (ii):
18                    (aa) the calculation for determining
19                achievement that is at least 125% of the
20                applicable annual total savings requirement
21                shall use the unreduced applicable annual
22                incremental goal to set the value; and
23                    (bb) the calculation for determining
24                achievement that is less than 125% but more
25                than 100% of the applicable annual total
26                savings requirement shall use the reduced

 

 

HB3101- 77 -LRB102 15747 SPS 21113 b

1                applicable annual incremental goal to set the
2                value for 100% achievement of the goal and
3                shall use the unreduced goal to set the value
4                for 125% achievement. The 8 basis point value
5                shall also be modified, as necessary, so that
6                the 200 basis points are evenly apportioned
7                among each percentage point value between 100%
8                and 125% achievement.
9        (7.5) For purposes of this Section, the term
10    "applicable annual incremental goal" means the difference
11    between the cumulative persisting annual savings goal for
12    the calendar year that is the subject of the independent
13    evaluator's determination and the cumulative persisting
14    annual savings goal for the immediately preceding calendar
15    year, as such goals are defined in subsections (b-5) and
16    (b-15) of this Section and as these goals may have been
17    modified as provided for under subsection (b-20) and
18    paragraphs (1) through (3) of subsection (f) of this
19    Section. Under subsections (b), (b-5), (b-10), and (b-15)
20    of this Section, a utility must first replace energy
21    savings from measures that have expired reached the end of
22    their measure lives and would otherwise have to be
23    replaced to meet the applicable savings goals identified
24    in subsection (b-5) or (b-15) of this Section before any
25    progress towards achievement of its applicable annual
26    incremental goal may be counted. Savings may expire

 

 

HB3101- 78 -LRB102 15747 SPS 21113 b

1    because measures installed in previous years have reached
2    the end of their lives, because measures installed in
3    previous years are producing lower savings in the current
4    year than in the previous year, or for other reasons
5    identified by independent evaluators. Notwithstanding
6    anything else set forth in this Section, the difference
7    between the actual annual incremental savings achieved in
8    any given year, including the replacement of energy
9    savings from measures that have expired, and the
10    applicable annual incremental goal shall not affect
11    adjustments to the return on equity for subsequent
12    calendar years under this subsection (g).
13        In this Section, "applicable annual total savings
14    requirement" means the total amount of new annual savings
15    that the utility must achieve in any given year to achieve
16    the applicable annual incremental goal. This is equal to
17    the applicable annual incremental goal plus the total new
18    annual savings that are required to replace savings that
19    expired in or at the end of the previous year.
20        (8) For electric utilities that serve less than
21    3,000,000 retail customers but more than 500,000 retail
22    customers in the State:
23            (A) Through December 31, 2025, the applicable
24        annual incremental goal shall be compared to the
25        annual incremental savings as determined by the
26        independent evaluator.

 

 

HB3101- 79 -LRB102 15747 SPS 21113 b

1                (i) The return on equity component shall be
2            reduced by 8 basis points for each percent by
3            which the utility did not achieve 84.4% of the
4            applicable annual incremental goal.
5                (ii) The return on equity component shall be
6            increased by 8 basis points for each percent by
7            which the utility exceeded 100% of the applicable
8            annual incremental goal.
9                (iii) The return on equity component shall not
10            be increased or decreased if the annual
11            incremental savings as determined by the
12            independent evaluator is greater than 84.4% of the
13            applicable annual incremental goal and less than
14            100% of the applicable annual incremental goal.
15                (iv) The return on equity component shall not
16            be increased or decreased by an amount greater
17            than 200 basis points pursuant to this
18            subparagraph (A).
19            (B) For the period of January 1, 2026 through
20        December 31, 2029 and in all subsequent 4-year periods
21        2030, the applicable annual incremental goal shall be
22        compared to the annual incremental savings as
23        determined by the independent evaluator.
24                (i) The return on equity component shall be
25            reduced by 6 basis points for each percent by
26            which the utility did not achieve 100% of the

 

 

HB3101- 80 -LRB102 15747 SPS 21113 b

1            applicable annual incremental goal.
2                (ii) The return on equity component shall be
3            increased by 6 basis points for each percent by
4            which the utility exceeded 100% of the applicable
5            annual incremental goal.
6                (iii) The return on equity component shall not
7            be increased or decreased by an amount greater
8            than 200 basis points pursuant to this
9            subparagraph (B).
10            (C) Notwithstanding provisions in subparagraphs
11        (A) and (B) of paragraph (7) of this subsection, if the
12        applicable annual incremental goal for an electric
13        utility is ever less than 0.6% of deemed average
14        weather normalized sales of electric power and energy
15        during calendar years 2014, 2015 and 2016, an
16        adjustment to the return on equity component of the
17        utility's weighted average cost of capital calculated
18        under subsection (d) of this Section shall be made as
19        follows:
20                (i) The return on equity component shall be
21            reduced by 8 basis points for each percent by
22            which the utility did not achieve 100% of the
23            applicable annual total savings requirement.
24                (ii) The return on equity component shall be
25            increased by 8 basis points for each percent by
26            which the utility exceeded 100% of the applicable

 

 

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1            annual total savings requirement.
2                (iii) The return on equity component shall not
3            be increased or decreased by an amount greater
4            than 200 basis points pursuant to this
5            subparagraph (C).
6            (D) (C) If the applicable annual incremental goal
7        was reduced under paragraphs (1), (2), or (3), or (4)
8        of subsection (f) of this Section, then the following
9        adjustments shall be made to the calculations
10        described in subparagraphs (A), and (B), and (C) of
11        this paragraph (8):
12                (i) The calculation for determining
13            achievement that is at least 125% or 134%, as
14            applicable, of the applicable annual incremental
15            goal or the applicable annual total savings
16            requirement, as applicable, shall use the
17            unreduced applicable annual incremental goal to
18            set the value.
19                (ii) For the period through December 31, 2025,
20            the calculation for determining achievement that
21            is less than 125% but more than 100% of the
22            applicable annual incremental goal or the
23            applicable annual total savings requirement, as
24            applicable, shall use the reduced applicable
25            annual incremental goal to set the value for 100%
26            achievement of the goal and shall use the

 

 

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1            unreduced goal to set the value for 125%
2            achievement. The 8 basis point value shall also be
3            modified, as necessary, so that the 200 basis
4            points are evenly apportioned among each
5            percentage point value between 100% and 125%
6            achievement.
7                (iii) For the period of January 1, 2026
8            through December 31, 2029 and all subsequent
9            4-year periods, the calculation for determining
10            achievement that is less than 125% or 134%, as
11            applicable, but more than 100% of the applicable
12            annual incremental goal or the applicable annual
13            total savings requirement, as applicable, shall
14            use the reduced applicable annual incremental goal
15            to set the value for 100% achievement of the goal
16            and shall use the unreduced goal to set the value
17            for 125% achievement. The 6 or 8 basis point
18            values, as applicable, shall also be modified, as
19            necessary, so that the 200 basis points are evenly
20            apportioned among each percentage point value
21            between 100% and 125% or between 100% and 134%
22            achievement, as applicable 2030, the calculation
23            for determining achievement that is less than 134%
24            but more than 100% of the applicable annual
25            incremental goal shall use the reduced applicable
26            annual incremental goal to set the value for 100%

 

 

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1            achievement of the goal and shall use the
2            unreduced goal to set the value for 125%
3            achievement. The 6 basis point value shall also be
4            modified, as necessary, so that the 200 basis
5            points are evenly apportioned among each
6            percentage point value between 100% and 134%
7            achievement.
8        (9) The utility shall submit the energy savings data
9    to the independent evaluator no later than 30 days after
10    the close of the plan year. The independent evaluator
11    shall determine the cumulative persisting annual savings
12    for a given plan year, as well as an estimate of job
13    impacts and other macroeconomic impacts of the efficiency
14    programs for that year, no later than 120 days after the
15    close of the plan year. The utility shall submit an
16    informational filing to the Commission no later than 160
17    days after the close of the plan year that attaches the
18    independent evaluator's final report identifying the
19    cumulative persisting annual savings for the year and
20    calculates, under paragraph (7) or (8) of this subsection
21    (g), as applicable, any resulting change to the utility's
22    return on equity component of the weighted average cost of
23    capital applicable to the next plan year beginning with
24    the January monthly billing period and extending through
25    the December monthly billing period. However, if the
26    utility recovers the costs incurred under this Section

 

 

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1    under paragraphs (2) and (3) of subsection (d) of this
2    Section, then the utility shall not be required to submit
3    such informational filing, and shall instead submit the
4    information that would otherwise be included in the
5    informational filing as part of its filing under paragraph
6    (3) of such subsection (d) that is due on or before June 1
7    of each year.
8        For those utilities that must submit the informational
9    filing, the Commission may, on its own motion or by
10    petition, initiate an investigation of such filing,
11    provided, however, that the utility's proposed return on
12    equity calculation shall be deemed the final, approved
13    calculation on December 15 of the year in which it is filed
14    unless the Commission enters an order on or before
15    December 15, after notice and hearing, that modifies such
16    calculation consistent with this Section.
17        The adjustments to the return on equity component
18    described in paragraphs (7) and (8) of this subsection (g)
19    shall be applied as described in such paragraphs through a
20    separate tariff mechanism, which shall be filed by the
21    utility under subsections (f) and (g) of this Section.
22        (9.5) The utility must demonstrate how it will ensure
23    that program implementation contractors and energy
24    efficiency installation vendors will meet multiple
25    workforce equity building criteria, including, but not
26    limited to:

 

 

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1            (i) Ensuring that an amount of program portfolio
2        incentive funding proportional to the population of
3        BIPOC persons within the utility's territory, as
4        updated every 2 years, is administered or installed by
5        energy efficiency installation vendors who meet one of
6        the following criteria:
7                (aa) certified under Section 2 of the Business
8            Enterprise for Minorities, Women, and Persons with
9            Disabilities Act; or
10                (bb) certified by another municipal, state,
11            federal, or other certification for disadvantaged
12            businesses; or
13                (cc) submit an affidavit showing that the
14            vendor meets the eligibility criteria for a
15            certification program such as those in subdivision
16            (aa) or (bb); or
17                (dd) if the vendor is a nonprofit, meet any of
18            the criteria in subdivision (aa), (bb), or (cc) or
19            is controlled by a board of directors that
20            consists of 51% or greater individuals who are
21            minorities, women, or persons with a disability as
22            defined by the Business Enterprise for Minorities,
23            Women, and Persons with a Disability Act.
24            (ii) Ensuring that program implementation
25        contractors and energy efficiency installation vendors
26        pay employees working on energy efficiency programs at

 

 

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1        or above the prevailing wage rate when such a wage rate
2        has been published by the Illinois Department of Labor
3        and pay employees working on energy efficiency
4        programs at or above the median wage rate for a similar
5        job description in the nearest metropolitan area when
6        there is no applicable published prevailing wage rate.
7        If necessary, utilities may conduct surveys to
8        establish the median wage rate for a given job
9        description. Utilities shall establish reporting
10        procedures for vendors that ensure compliance with
11        this subsection, but are structured to avoid, wherever
12        possible, placing an undue administrative burden on
13        vendors.
14            (iii) Ensuring that program implementation
15        contractor employees and energy efficiency
16        installation vendor employees are proportional to the
17        population of BIPOC persons, within the utility's
18        territory, as updated every 2 years.
19            (iv) Ensuring that 30% or more of the energy
20        efficiency installation vendor employees working for
21        vendors reporting to each program implementation
22        contractor are graduates or trainees from
23        equity-focused workforce training programs designated
24        by the Illinois Power Agency or similar programs
25        offering equivalent certifications.
26            (v) Ensuring that vendors who are very small

 

 

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1        businesses of 5 or fewer full-time employees or
2        businesses that have completed or are participating in
3        contractor incubator programs or entrepreneurship
4        programs designated by the Illinois Power Agency,
5        receive a substantial portion of program portfolio
6        funding. Utility plans to achieve this shall include
7        efforts to provide the necessary training and
8        administrative support needed for very small
9        businesses to meet utility-mandated training,
10        certification, insurance, and security-related
11        contract requirements.
12        (9.6) Utilities shall collect data necessary to ensure
13    compliance with paragraph (9.5) no less than quarterly and
14    shall communicate progress toward compliance with
15    paragraph (9.5) to program implementation contractors and
16    energy efficiency installation vendors no less than
17    quarterly. When it seems unlikely that the criteria in
18    paragraph (9.5) will be met, utilities shall work with
19    relevant vendors, providing education, training, and other
20    resources needed to ensure compliance and, where
21    necessary, adjusting or terminating work with vendors that
22    cannot assist with compliance.
23        (10) Utilities required to implement efficiency
24    programs under subsections (b-5) and (b-10) shall report
25    annually to the Illinois Commerce Commission and the
26    General Assembly on how hiring, contracting, job training,

 

 

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1    and other practices related to its energy efficiency
2    programs enhance the diversity of vendors working on such
3    programs. These reports must include data on vendor and
4    employee diversity, including data on the implementation
5    of paragraphs (9.5) and (9.6). If the utility is not
6    meeting the requirements of paragraphs (9.5) and (9.6),
7    the utility shall submit a plan to adjust their activities
8    so that they meet the requirements of paragraphs (9.5) and
9    (9.6) within the following year.
10    (h) No more than 6% of energy efficiency and
11demand-response program revenue may be allocated for research,
12development, or pilot deployment of new equipment or measures.
13    (i) When practicable, electric utilities shall incorporate
14advanced metering infrastructure data into the planning,
15implementation, and evaluation of energy efficiency measures
16and programs, subject to the data privacy and confidentiality
17protections of applicable law.
18    (j) The independent evaluator shall follow the guidelines
19and use the savings set forth in Commission-approved energy
20efficiency policy manuals and technical reference manuals, as
21each may be updated from time to time. Until such time as
22measure life values for energy efficiency measures implemented
23for low-income households under subsection (c) of this Section
24are incorporated into such Commission-approved manuals, the
25low-income measures shall have the same measure life values
26that are established for same measures implemented in

 

 

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1households that are not low-income households.
2    (k) Notwithstanding any provision of law to the contrary,
3an electric utility subject to the requirements of this
4Section may file a tariff cancelling an automatic adjustment
5clause tariff in effect under this Section or Section 8-103,
6which shall take effect no later than one business day after
7the date such tariff is filed. Thereafter, the utility shall
8be authorized to defer and recover its expenditures incurred
9under this Section through a new tariff authorized under
10subsection (d) of this Section or in the utility's next rate
11case under Article IX or Section 16-108.5 of this Act, with
12interest at an annual rate equal to the utility's weighted
13average cost of capital as approved by the Commission in such
14case. If the utility elects to file a new tariff under
15subsection (d) of this Section, the utility may file the
16tariff within 10 days after June 1, 2017 (the effective date of
17Public Act 99-906), and the cost inputs to such tariff shall be
18based on the projected costs to be incurred by the utility
19during the calendar year in which the new tariff is filed and
20that were not recovered under the tariff that was cancelled as
21provided for in this subsection. Such costs shall include
22those incurred or to be incurred by the utility under its
23multi-year plan approved under subsections (f) and (g) of this
24Section, including, but not limited to, projected capital
25investment costs and projected regulatory asset balances with
26correspondingly updated depreciation and amortization reserves

 

 

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1and expense. The Commission shall, after notice and hearing,
2approve, or approve with modification, such tariff and cost
3inputs no later than 75 days after the utility filed the
4tariff, provided that such approval, or approval with
5modification, shall be consistent with the provisions of this
6Section to the extent they do not conflict with this
7subsection (k). The tariff approved by the Commission shall
8take effect no later than 5 days after the Commission enters
9its order approving the tariff.
10    No later than 60 days after the effective date of the
11tariff cancelling the utility's automatic adjustment clause
12tariff, the utility shall file a reconciliation that
13reconciles the moneys collected under its automatic adjustment
14clause tariff with the costs incurred during the period
15beginning June 1, 2016 and ending on the date that the electric
16utility's automatic adjustment clause tariff was cancelled. In
17the event the reconciliation reflects an under-collection, the
18utility shall recover the costs as specified in this
19subsection (k). If the reconciliation reflects an
20over-collection, the utility shall apply the amount of such
21over-collection as a one-time credit to retail customers'
22bills.
23    (l) (Blank). For the calendar years covered by a
24multi-year plan commencing after December 31, 2017,
25subsections (a) through (j) of this Section do not apply to any
26retail customers of an electric utility that serves more than

 

 

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13,000,000 retail customers in the State and whose total
2highest 30 minute demand was more than 10,000 kilowatts, or
3any retail customers of an electric utility that serves less
4than 3,000,000 retail customers but more than 500,000 retail
5customers in the State and whose total highest 15 minute
6demand was more than 10,000 kilowatts. For purposes of this
7subsection (l), "retail customer" has the meaning set forth in
8Section 16-102 of this Act. A determination of whether this
9subsection is applicable to a customer shall be made for each
10multi-year plan beginning after December 31, 2017. The
11criteria for determining whether this subsection (l) is
12applicable to a retail customer shall be based on the 12
13consecutive billing periods prior to the start of the first
14year of each such multi-year plan.
15    (m) Notwithstanding the requirements of this Section, as
16part of a proceeding to approve a multi-year plan under
17subsections (f) and (g) of this Section if the multi-year plan
18has been designed to maximize savings, but does not meet the
19cost cap limitations of this subsection, the Commission shall
20reduce the amount of energy efficiency measures implemented
21for any single year, and whose costs are recovered under
22subsection (d) of this Section, by an amount necessary to
23limit the estimated average net increase due to the cost of the
24measures to no more than
25        (1) 3.5% for each of the 4 years beginning January 1,
26    2018,

 

 

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1        (2) (blank), 3.75% for each of the 4 years beginning
2    January 1, 2022, and
3        (3) 4% for each of the 4 5 years beginning January 1,
4    2022 2026,
5        (4) 4.25% for the 4 years beginning January 1, 2026,
6    and
7        (5) 4.25% plus an increase sufficient to account for
8    the rate of inflation between January 1, 2026 and January
9    1 of the first year of each subsequent 4-year plan cycle,
10of the average amount paid per kilowatthour by residential
11eligible retail customers during calendar year 2015. An
12electric utility may plan to spend up to 10% more in any year
13during an applicable multi-year plan period to
14cost-effectively achieve additional savings so long as the
15average over the applicable multi-year plan period does not
16exceed the percentages defined in items (1) through (5). To
17determine the total amount that may be spent by an electric
18utility in any single year, the applicable percentage of the
19average amount paid per kilowatthour shall be multiplied by
20the total amount of energy delivered by such electric utility
21in the calendar year 2015, adjusted to reflect the proportion
22of the utility's load attributable to customers who are exempt
23from subsections (a) through (j) of this Section under
24subsection (l) of this Section. For purposes of this
25subsection (m), the amount paid per kilowatthour includes,
26without limitation, estimated amounts paid for supply,

 

 

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1transmission, distribution, surcharges, and add-on taxes. For
2purposes of this Section, "eligible retail customers" shall
3have the meaning set forth in Section 16-111.5 of this Act.
4Once the Commission has approved a plan under subsections (f)
5and (g) of this Section, no subsequent rate impact
6determinations shall be made.
7(Source: P.A. 100-840, eff. 8-13-18; 101-81, eff. 7-12-19.)
 
8    (220 ILCS 5/8-104.1 new)
9    Sec. 8-104.1. Gas utilities; annual savings goals.
10    (a) It is the policy of the State that gas utilities are
11required to use cost-effective energy efficiency to reduce
12delivery load. Requiring investment in cost-effective energy
13efficiency will reduce direct and indirect costs to consumers
14by decreasing environmental impacts and by reducing the amount
15of natural gas that needs to be purchased and avoiding or
16delaying the need for new transmission, distribution, storage
17and other related infrastructure. It serves the public
18interest to allow gas utilities to recover costs for
19reasonably and prudently incurred expenditures for energy
20efficiency measures.
21    (b) In this Section:
22    "Cost-effective" means that the measures satisfy the total
23resource cost test that, for purposes of this Section, means a
24standard that is met if, for an investment in energy
25efficiency, the benefit-cost ratio is greater than one. The

 

 

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1benefit-cost ratio is the ratio of the net present value of the
2total benefits of the measures to the net present value of the
3total costs as calculated over the lifetime of the measures.
4The total resource cost test compares the sum of avoided
5natural gas utility costs, representing the benefits that
6accrue to the natural gas system and the participant in the
7delivery of those efficiency measures and including avoided
8costs associated with the use of electricity or other fuels,
9avoided cost associated with reduced water consumption, and
10avoided costs associated with reduced operation and
11maintenance costs, as well as other quantifiable societal
12benefits, to the sum of all incremental costs of end-use
13measures (including both utility and participant
14contributions), plus costs to administer, deliver, and
15evaluate each demand-side measure, to quantify the net savings
16obtained by substituting demand-side measures for supply
17resources. In calculating avoided costs, reasonable estimates
18shall be included for financial costs likely to be imposed by
19future regulation of emissions of greenhouse gases. In
20discounting future societal costs and benefits for the purpose
21of calculating net present values, a societal discount rate
22based on actual, long-term Treasury bond yields shall be used.
23The low-income measures described in subsection (f) of this
24Section shall not be required to meet the total resource cost
25test.
26    "Cumulative persisting annual savings" means the total gas

 

 

HB3101- 95 -LRB102 15747 SPS 21113 b

1energy savings in a given year from measures installed in that
2year or in previous years, but no earlier than January 1, 2022,
3that are still operational and providing savings in that year
4because the measures have not yet reached the end of their
5useful lives.
6    "Energy efficiency" means measures that reduce the amount
7of energy required to achieve a given end use. "Energy
8efficiency" also includes measures that reduce the total Btus
9of electricity and natural gas needed to meet the end use or
10uses. "Black, indigenous, and people of color" and "BIPOC"
11means people who are members of the groups described in
12subparagraphs (a) through (e) of paragraph (A) of subsection
13(1) of Section 2 of the Business Enterprise for Minorities,
14Women, and Persons with Disabilities Act.
15    (c) This Section applies to all gas distribution utilities
16in the State for those multi-year plans that include energy
17efficiency programs commencing after December 31, 2022.
18    (d) Beginning in 2023, gas utilities subject to this
19Section shall achieve the following cumulative persisting
20annual savings goals, as compared to a deemed baseline
21equivalent to the utility's average annual therm throughput in
222016 through 2020 through the implementation of energy
23efficiency measures during the applicable year and in prior
24years, but no earlier than January 1, 2023:
25        (1) 1.2% cumulative persisting annual savings for the
26    year ending December 31, 2023;

 

 

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1        (2) 2.1% cumulative persisting annual savings for the
2    year ending December 31, 2024;
3        (3) 3.0% cumulative persisting annual savings for the
4    year ending December 31, 2025;
5        (4) 3.9% cumulative persisting annual savings for the
6    year ending December 31, 2026;
7        (5) 4.8% cumulative persisting annual savings for the
8    year ending December 31, 2027;
9        (6) 5.7% cumulative persisting annual savings for the
10    year ending December 31, 2028;
11        (7) 6.6% cumulative persisting annual savings for the
12    year ending December 31, 2029;
13        (8) 7.4% cumulative persisting annual savings for the
14    year ending December 31, 2030;
15        (9) 8.2% cumulative persisting annual savings for the
16    year ending December 31, 2031;
17        (10) 9.0% cumulative persisting annual savings for the
18    year ending December 31, 2032;
19        (11) 9.8% cumulative persisting annual savings for the
20    year ending December 31, 2033;
21        (12) 10.6% cumulative persisting annual savings for
22    the year ending December 31, 2034;
23        (13) 11.4% cumulative persisting annual savings for
24    the year ending December 31, 2035;
25        (14) 12.1% cumulative persisting annual savings for
26    the year ending December 31, 2036; and

 

 

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1        (15) 12.8% cumulative persisting annual savings for
2    the year ending December 31, 2037.
3    No later than December 31, 2025, the Illinois Commerce
4Commission shall establish additional cumulative persisting
5annual savings goals for the years 2037 through 2041. The
6Commission shall also establish additional cumulative
7persisting annual savings goals every 5 years thereafter to
8ensure utilities always have goals that extend at least 11
9years into the future. The cumulative persisting annual
10savings goals beyond the year 2035 shall increase by 0.6
11percentage points per year absent a Commission decision to
12initiate a proceeding to consider establishing goals that
13increase by more or less than that amount. Such a proceeding
14must be conducted in accordance with the procedures described
15in subsection (f) of this Section. If such a proceeding is
16initiated, the cumulative persisting annual savings goals
17established by the Commission through that proceeding shall
18reflect the Commission's best estimate of the maximum amount
19of additional gas savings that are forecast to be
20cost-effectively achievable unless such best estimates would
21result in goals that represent less than 0.4 percentage point
22annual increases in total cumulative persisting annual
23savings. The Commission may only establish goals that
24represent less than 0.4 percentage point annual increases in
25cumulative persisting annual savings if it can demonstrate,
26based on clear and convincing evidence, that 0.4 percentage

 

 

HB3101- 98 -LRB102 15747 SPS 21113 b

1point increases are not cost-effectively achievable. The
2Commission shall inform its decision based on an energy
3efficiency potential study that conforms to the requirements
4of subsection (j-5) of this Section.
5    (e) If a gas utility jointly offers an energy efficiency
6measure or program with an electric utility under plans
7approved under this Section and Section 8-103B of this Act,
8the gas utility may continue offering the program, including
9the electric energy efficiency measures, if the electric
10utility discontinues funding the program. In that event, the
11energy-savings value associated with such other fuels shall be
12converted to gas energy savings on an equivalent Btu basis for
13the premises. However, the gas utility shall prioritize
14programs for low-income residential customers to the extent
15practicable. A gas utility may recover the costs of offering
16the gas energy efficiency measures under this subsection (e).
17    For those energy efficiency measures or programs that save
18both gas and other fuels but are not jointly offered with an
19electric utility under plans approved under this Section and
20Section 8-103B, the gas utility may count savings of fuels
21other than gas toward the achievement of its annual savings
22goal, and the energy-savings value associated with such other
23fuels shall be converted to gas energy savings on an
24equivalent Btu basis at the premises.
25    In no event shall more than 10% of each year's applicable
26annual total savings requirement as defined in paragraph (8)

 

 

HB3101- 99 -LRB102 15747 SPS 21113 b

1of subsection (j) of this Section be met through savings of
2fuels other than gas.
3    (f) Gas utilities are responsible for overseeing the
4design, development, and filing of energy efficiency plans
5with the Commission and may, as part of that implementation,
6outsource various aspects of program development and
7implementation. A minimum of 10% of the utility's entire
8portfolio funding level for a given year shall be used to
9procure cost-effective energy efficiency measures from units
10of local government, municipal corporations, school districts,
11public housing, community college districts, and
12nonprofit-owned buildings provided that a minimum percentage
13of available funds shall be used to procure energy efficiency
14from public housing, which percentage shall be equal to public
15housing's share of public building energy consumption.
16    The utilities shall also implement energy efficiency
17measures targeted at low-income single-family and multifamily
18households, which, as used in this Section, means households
19at or below 80% of area median income, and expenditures to
20implement the measures shall be no less than 25% of the
21utility's total efficiency portfolio budget.
22    At least 70% of spending on programs targeted at
23low-income households shall go toward integrated whole
24building efficiency programs, as defined in subsection (g), or
25individual measures that reduce space heating needs through
26improvements to the building envelope, heating distribution

 

 

HB3101- 100 -LRB102 15747 SPS 21113 b

1systems, or heating system controls. In implementing these
2programs, utilities shall ensure that thermal insulating
3materials used in the building envelope do not contain any
4substance that is a Category 1 respiratory sensitizer as
5defined by Appendix A to 29 CFR 1910.1200 (Health Hazard
6Criteria: A.4 Respiratory or Skin Sensitization) that was
7intentionally added or is present at greater than 0.1% (1000
8ppm) by weight in the product. Programs targeted at low-income
9households, which address single-family and multifamily
10buildings shall be treated such that forecast savings to be
11achieved in each building type are approximately in
12proportional to the magnitude of cost-effective energy
13efficiency opportunities in these respective building types.
14    Each gas utility shall assess opportunities to implement
15cost-effective energy efficiency measures and programs through
16a public-housing authority or authorities located in its
17service territory. If such opportunities are identified, the
18utility shall propose such measures and programs to address
19the opportunities. Expenditures to address such opportunities
20shall be credited toward the minimum procurement and
21expenditure requirements set forth in this subsection (f).
22    Implementation of energy efficiency measures and programs
23targeted at low-income households shall be contracted, when it
24is practical, to independent third parties that have
25demonstrated capabilities to serve such households, with a
26preference for not-for-profit entities and government agencies

 

 

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1that have existing relationships with or experience serving
2low-income communities in the State.
3    Each gas utility shall develop and implement reporting
4procedures that address and assist in determining the amount
5of energy savings that can be applied to the low-income
6procurement and expenditure requirements set forth in this
7subsection (f). Each gas utility shall also track the types
8and quantities or volumes of insulation and air sealing
9materials, and their associated energy saving benefits,
10installed in energy efficiency programs targeted at low-income
11single-family and multifamily households.
12    Each gas utility shall implement a health and safety fund
13of a minimum of 0.5% of the utility's entire portfolio funding
14level for a given year, that shall be used for the purpose of
15making grants for technical assistance, construction,
16reconstruction, improvement, or repair of buildings to
17facilitate their participation in the energy efficiency
18programs targeted at low-income single-family and multifamily
19households. These funds may also be used for the purpose of
20making grants for technical assistance, construction,
21reconstruction, improvement, or repair of the following
22buildings to facilitate their participation in the energy
23efficiency programs created by this Section: (1) buildings
24that are owned or operated by registered 501(c)(3) public
25charities; and (2) day care centers, day care homes, or group
26day care homes, as defined by 89 Ill. Adm. Code Part 406, 407,

 

 

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1or 408, respectively.
2    The gas utilities shall participate in a low-income energy
3efficiency accountability committee ("the committee"), which
4will directly inform the design, implementation, and
5evaluation of the low-income and public-housing energy
6efficiency programs. The committee shall be composed of the
7electric utilities subject to the requirements of Section
88-103B of this Act, the gas utilities subject to the
9requirements of this Section, the utilities' low-income energy
10efficiency implementation contractors, nonprofit
11organizations, community action agencies, advocacy groups,
12State and local governmental agencies, public-housing
13organizations, and representatives of community-based
14organizations, especially those living in or working with
15environmental justice communities and BIPOC communities. The
16committee shall be composed of a statewide leadership
17committee and 2 geographically differentiated subcommittees:
18one for stakeholders in northern Illinois and one for
19stakeholders in central and southern Illinois. The
20subcommittees shall meet together at least twice per year.
21    There shall be a statewide leadership committee led by and
22composed of community-based organizations that are
23representative of BIPOC and environmental justice communities
24and that includes equitable representation from BIPOC
25communities. The leadership committee shall be composed of an
26equal number of representatives from the 2 subcommittees.

 

 

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1    The subcommittees shall address specific programs and
2issues, with the leadership committee convening targeted
3workgroups as needed. The leadership committee may elect to
4work with an independent facilitator to solicit and organize
5feedback, recommendations and meeting participation from a
6wide variety of community-based stakeholders. If a facilitator
7is used, they shall be fair and responsive to the needs of all
8stakeholders involved in the committee.
9    All committee meetings must be accessible, with rotating
10locations if meetings are held in-person, virtual
11participation options, and materials and agendas circulated
12well in advance.
13    There shall also be opportunities for direct input by
14committee members outside of committee meetings, such as via
15individual meetings, surveys, emails and calls, to ensure
16robust participation by stakeholders with limited capacity and
17ability to attend committee meetings. Committee meetings shall
18emphasize opportunities to bundle and coordinate delivery of
19low-income energy efficiency with other programs that serve
20low-income communities, such as Solar for All and bill payment
21assistance programs. Meetings shall include educational
22opportunities for stakeholders to learn more about these
23additional offerings, and the committee shall assist in
24figuring out the best methods for coordinated delivery and
25implementation of offerings when serving low-income
26communities. The committee shall directly and equitably

 

 

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1influence and inform utility low-income and public-housing
2energy efficiency programs and priorities.
3    Participating utilities shall implement recommendations
4from the committee whenever possible. Participating utilities
5shall track and report how input from the committee has led to
6new approaches and changes in their energy efficiency
7portfolios. This reporting shall occur at committee meetings
8and in quarterly energy efficiency reports to the Stakeholder
9Advisory Group and Illinois Commerce Commission, and other
10relevant reporting mechanisms. Participating utilities shall
11also report on relevant equity data and metrics requested by
12the committee, such as energy burden data, geographic, racial,
13and other relevant demographic data on where programs are
14being delivered and what populations programs are serving.
15    The Illinois Commerce Commission shall oversee and have
16relevant staff participate in the committee. The committee
17shall have a budget of 0.25% of each utility's entire
18efficiency portfolio funding for a given year. The budget
19shall be overseen by the Commission. The budget shall be used
20to provide grants for community-based organizations serving on
21the leadership committee, stipends for community-based
22organizations participating in the committee, grants for
23community-based organizations to do energy efficiency outreach
24and education, and relevant meeting needs as determined by the
25leadership committee. The education and outreach shall
26include, but is not limited to, basic energy efficiency

 

 

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1education, information about low-income energy efficiency
2programs, and information on the committee's purpose,
3structure, and activities.
4    (g) At least 50% of the entire efficiency program
5portfolio budget shall be spent on any combination of (1)
6heating energy savings from integrated, residential or
7nonresidential, new or existing whole building efficiency
8programs; and (2) individual heating measures in residential
9or nonresidential buildings, new or existing, that reduce the
10amount of space heating needs through improvements to the
11efficiency of building envelopes (including, but not limited
12to, insulation measures, efficient windows and air leakage
13reduction), improvements to systems for distributing heat
14(including, but not limited to, duct leakage reduction, duct
15insulation or pipe insulation) in buildings, improvements to
16ventilation systems (including, but not limited to heat
17recovery ventilation and demand control ventilation measures)
18or improvements to controls of heating equipment (including,
19but not limited to, advanced thermostats). Spending on
20efficient furnaces, efficient boilers, or other efficient
21heating equipment measures outside of or separate from
22integrated whole building efficiency programs is permitted
23within the efficiency program portfolio, but does not count
24toward the minimum spending requirement in this subsection
25(g). Spending on integrated whole building efficiency programs
26targeted to low-income customers, as well as spending on

 

 

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1individual building envelope, heating distribution system,
2ventilation system and heating system control measures
3installed in low-income homes does count toward this
4requirement. The portion of portfolio spending on program
5marketing, training of installers, audits of buildings,
6inspections of work performed, and other administrative and
7technical expenses that are clearly tied to promotion and
8delivery of integrated whole building efficiency programs or
9installation of individual building envelope, heating
10distribution system, ventilation system or heating system
11control measures shall count toward this requirement. If this
12minimum requirement is not met, any performance incentive
13earned under paragraph (7) of subsection (j) should be reduced
14by the percentage point level of shortfall in meeting this
15requirement; if the utility is subject to a performance
16penalty, then the magnitude of the penalty shall be increased
17by the percentage point shortfall in meeting this requirement.
18    As used in this subsection (g), "integrated whole building
19efficiency programs" means programs designed to optimize the
20heating efficiency of buildings by comprehensively and
21simultaneously addressing cost-effective energy-savings
22opportunities associated with heating equipment, heating
23distribution systems, heating system controls, ventilation
24systems and building envelopes; such programs may be targeted
25to existing buildings or to construction of new buildings.
26    (h) Notwithstanding any other provision of law to the

 

 

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1contrary, a utility providing approved energy efficiency
2measures in the State shall be permitted to recover all
3reasonable and prudently incurred costs of those measures from
4all distribution system customers, provided that nothing in
5this subsection (h) permits the double recovery of such costs
6from customers.
7    (i) Beginning in 2022, each gas utility shall file an
8energy efficiency plan with the Commission to meet the energy
9efficiency standards for the next applicable multi-year period
10beginning January 1 of the year following the filing,
11according to the schedule set forth in paragraphs (1) through
12(5) of this subsection (i). If a utility does not file such a
13plan on or before the applicable filing deadline for the plan,
14it shall face a penalty of $100,000 per day until the plan is
15filed.
16        (1) No later March 1, 2022, each gas utility shall
17    file a 3-year energy efficiency plan commencing on January
18    1, 2023 that is designed to achieve the cumulative
19    persisting annual savings goals specified in paragraphs
20    (1) through (3) of subsection (d) of this Section through
21    implementation of energy efficiency measures; however, the
22    goals may be reduced if the plan's analysis and forecasts
23    of the utility's ability to acquire energy savings
24    demonstrate beyond a reasonable doubt that achievement of
25    such goals is not cost-effective. Annual increases in
26    cumulative persisting annual savings goals during the

 

 

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1    applicable 3-year plan period shall not be reduced to
2    amounts that are less than the maximum amount of
3    cumulative persisting annual savings that is forecast to
4    be cost-effectively achievable during the 3-year plan
5    period. The Commission shall review any proposed goal
6    reduction as part of its review and approval of the
7    utility's proposed plan, taking into account the results
8    of the potential study required by subsection (j-5) of
9    this Section.
10        (2) No later than March 1, 2025, each gas utility
11    shall file a 4-year energy efficiency plan commencing on
12    January 1, 2026 that is designed to achieve the cumulative
13    persisting annual savings goals specified in paragraphs
14    (4) through (7) of subsection (d) of this Section through
15    implementation of energy efficiency measures; however, the
16    goals may be reduced if each of the following conditions
17    are met: (A) the plan's analysis and forecasts of the
18    utility's ability to acquire energy savings demonstrate
19    beyond a reasonable doubt that achievement of such goals
20    is not cost-effective; and (B) the amount of energy
21    savings achieved by the utility as determined by the
22    independent evaluator for the most recent year for which
23    savings have been evaluated preceding the plan filing was
24    less than the average annual amount of savings required to
25    achieve the goals for the applicable 4-year plan period.
26    Annual increases in cumulative persisting annual savings

 

 

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1    goals during the applicable 4-year plan period shall not
2    be reduced to amounts that are less than the maximum
3    amount of cumulative persisting annual savings that is
4    forecast to be cost-effectively achievable during the
5    4-year plan period. The Commission shall review any
6    proposed goal reduction as part of its review and approval
7    of the utility's proposed plan, taking into account the
8    results of the potential study required by subsection
9    (j-5) of this Section.
10        (3) No later than March 1, 2029, each gas utility
11    shall file a 4-year energy efficiency plan commencing on
12    January 1, 2030 that is designed to achieve the cumulative
13    persisting annual savings goals specified in paragraphs
14    (8) through (11) of subsection (d) of this Section through
15    implementation of energy efficiency measures; however, the
16    goals may be reduced if each of the following conditions
17    are met: (A) the plan's analysis and forecasts of the
18    utility's ability to acquire energy savings demonstrate
19    beyond a reasonable doubt that achievement of such goals
20    is not cost-effective; and (B) the amount of energy
21    savings achieved by the utility as determined by the
22    independent evaluator for the most recent year for which
23    savings have been evaluated preceding the plan filing was
24    less than the average annual amount of savings required to
25    achieve the goals for the applicable 4-year plan period.
26    Annual increases in cumulative persisting annual savings

 

 

HB3101- 110 -LRB102 15747 SPS 21113 b

1    goals during the applicable 4-year plan period shall not
2    be reduced to amounts that are less than the maximum
3    amount of cumulative persisting annual savings that is
4    forecast to be cost-effectively achievable during the
5    4-year plan period. The Commission shall review any
6    proposed goal reduction as part of its review and approval
7    of the utility's proposed plan, taking into account the
8    results of the potential study required by subsection
9    (j-5) of this Section.
10        (4) No later than March 1, beginning in 2033 and each 4
11    years thereafter, each gas utility shall file a 4-year
12    energy efficiency plan commencing on January 1, beginning
13    in 2034 and each 4-year period thereafter, that is
14    designed to achieve the cumulative persisting annual
15    savings goals specified in paragraphs (12) through (15) of
16    subsection (d), as well as goals for subsequent years that
17    are established by the Illinois Commerce Commission
18    pursuant to direction of subsection (d) of this Section,
19    through implementation of energy efficiency measures;
20    however, the goals may be reduced if each of the following
21    conditions are met: (A) the plan's analysis and forecasts
22    of the utility's ability to acquire energy savings
23    demonstrate beyond a reasonable doubt that achievement of
24    such goals is not cost-effective; and (B) the amount of
25    energy savings achieved by the utility as determined by
26    the independent evaluator for the most recent year for

 

 

HB3101- 111 -LRB102 15747 SPS 21113 b

1    which savings have been evaluated preceding the plan
2    filing was less than the average annual amount of savings
3    required to achieve the goals for the applicable 4-year
4    plan period. Annual increases in cumulative persisting
5    annual savings goals during the applicable 4-year plan
6    period shall not be reduced to amounts that are less than
7    the maximum amount of cumulative persisting annual savings
8    that is forecast to be cost-effectively achievable during
9    the 4-year plan period. The Commission shall review any
10    proposed goal reduction as part of its review and approval
11    of the utility's proposed plan, taking into account the
12    results of the potential study required by subsection
13    (j-5) of this Section.
14    Each utility's plan shall set forth the utility's
15proposals to meet the energy efficiency standards identified
16in subsection (d). The Commission shall seek public comment on
17the utility's plan and shall issue an order approving or
18disapproving each plan within 6 months after its submission.
19If the Commission disapproves a plan, the Commission shall,
20within 30 days, describe in detail the reasons for the
21disapproval and describe a path by which the utility may file a
22revised draft of the plan to address the Commission's concerns
23satisfactorily. If the utility does not refile with the
24Commission within 60 days, the utility shall be subject to
25penalties at a rate of $100,000 per day until the plan is
26filed. This process shall continue, and penalties shall

 

 

HB3101- 112 -LRB102 15747 SPS 21113 b

1accrue, until the utility has successfully filed a portfolio
2of energy efficiency measures. Penalties shall be deposited
3into the Energy Efficiency Trust Fund.
4    (j) In submitting proposed plans and funding levels under
5subsection (i) of this Section to meet the savings goals
6identified in subsection (d), the utility shall:
7        (1) Demonstrate that its proposed energy efficiency
8    measures will achieve the applicable requirements that are
9    identified in subsection (d) of this Section.
10        (2) Demonstrate consideration of program options for
11    (A) advancing new building codes, appliance standards, and
12    municipal regulations governing existing and new building
13    efficiency improvements and (B) supporting efforts to
14    improve compliance with new building codes, appliance
15    standards and municipal regulations, as potentially
16    cost-effective means of acquiring energy savings to count
17    toward savings goals.
18        (3) Demonstrate that its overall portfolio of
19    measures, not including low-income programs described in
20    subsection (f) of this Section, is cost-effective using
21    the total resource cost test, complies with subsection (i)
22    of this Section and represents a diverse cross-section of
23    opportunities for customers of all rate classes, to
24    participate in the programs. Individual measures need not
25    be cost-effective.
26        (3.5) Demonstrate that the utility's plan integrates

 

 

HB3101- 113 -LRB102 15747 SPS 21113 b

1    the delivery of energy efficiency programs with electric
2    efficiency programs and other efforts to address bill
3    payment issues, including, but not limited to, LIHEAP and
4    the Percent Income Payment Plan, to the extent such
5    integration is practical and has the potential to enhance
6    customer engagement, minimize market confusion, or reduce
7    administrative costs.
8        (4) Present a third-party energy efficiency
9    implementation program subject to the following
10    requirements:
11            (A) Beginning with the year commencing January 1,
12        2024, gas utilities shall fund third-party energy
13        efficiency programs in an amount that is no less than
14        10% of total efficiency portfolio budgets per year.
15            (B) For the multi-year plans commencing on January
16        1, 2023, the utility shall conduct a solicitation
17        process during 2023 for purposes of requesting
18        proposals from third-party vendors for those
19        third-party energy efficiency programs to be offered
20        during one or more years of the last 2 years of the
21        2023 to 2025 plan period. For the solicitation
22        process, the utility shall identify the sector,
23        technology, or a geographic area for which it is
24        seeking requests for proposals. The solicitation
25        process must be for programs that fill gaps in the
26        utility's program portfolio or target business

 

 

HB3101- 114 -LRB102 15747 SPS 21113 b

1        sectors, building types, geographies or other specific
2        parts of its customer base with initiatives that would
3        be more effective at reaching these customer segments
4        than the utilities' programs filed in its energy
5        efficiency plans.
6            (C) For multi-year plans commencing on January 1,
7        2026, January 1, 2030, and every 4 years thereafter,
8        the utility shall conduct a solicitation process
9        during 2025, 2029, and every 4 years thereafter,
10        respectively, for purposes of requesting proposals
11        from third-party vendors for those third-party energy
12        efficiency programs to be offered during one or more
13        years of the respective multi-year plan period; for
14        each solicitation process, the utility shall identify
15        the sector, technology, or geographic area for which
16        it is seeking requests for proposals; the solicitation
17        process must be for programs that fill gaps in the
18        utility's program portfolio or target business
19        sectors, building types, geographies or other specific
20        parts of its customer base with initiatives that would
21        be more effective at reaching these customer segments
22        than the utilities' programs filed in its energy
23        efficiency plans.
24            (D) The utility shall propose the bidder
25        qualifications, performance measurement process, and
26        contract structure, which must include a performance

 

 

HB3101- 115 -LRB102 15747 SPS 21113 b

1        payment mechanism and general terms and conditions;
2        the proposed qualifications, process, and structure
3        shall be subject to Commission approval.
4            (E) The utility shall retain an independent third
5        party to score the proposals received through the
6        solicitation process described in this paragraph (4),
7        rank them according to their cost per lifetime
8        kilowatt hours saved, and assemble the portfolio of
9        third-party programs.
10        The gas utility shall recover all costs associated
11    with Commission-approved, third-party administered
12    programs regardless of the success of those programs.
13        (5) Include a proposed or revised cost-recovery
14    mechanism, as provided for under subsection (h) of this
15    Section, to fund the proposed energy efficiency measures
16    and to ensure the recovery of the prudently and reasonably
17    incurred costs of Commission-approved programs.
18        (6) Provide for an annual independent evaluation of
19    the performance of the cost-effectiveness of the utility's
20    portfolio of measures, as well as a full review of the
21    multi-year plan results of the broader net program impacts
22    and, to the extent practical, for adjustment of the
23    measures on a going-forward basis as a result of the
24    evaluations. The resources dedicated to evaluation shall
25    not exceed 3% of portfolio resources in any given year.
26        (7) Each gas utility shall be eligible to earn a

 

 

HB3101- 116 -LRB102 15747 SPS 21113 b

1    shareholder incentive for effective implementation of its
2    efficiency programs. The incentive shall be tied to each
3    utility's annual energy efficiency spending and its
4    savings relative to its applicable annual total savings
5    requirement as defined in paragraph (8) of this subsection
6    (j). There shall be no incentive if the independent
7    evaluator determines the utility failed to achieve savings
8    equal to at least 85% of its applicable annual total
9    savings requirement. The utility shall earn an incentive
10    equal 0.5% of total annual efficiency spending in the year
11    being evaluated for every one percentage point above 85%
12    up to 100% of its applicable annual total savings
13    requirement that the utility achieved in that year, such
14    that the utility shall earn an incentive equal to 7.5% of
15    spending for meeting 100% of its applicable annual total
16    savings requirement. The utility shall earn an additional
17    0.3% of spending for every one percentage point above 100%
18    of its applicable annual total savings requirement
19    achieved, with a maximum incentive of 15% for achieving
20    125% of its applicable annual total savings requirement.
21        (7.5) In this Section, "applicable annual incremental
22    goal" means the difference between the cumulative
23    persisting annual savings goal for the calendar year that
24    is the subject of the independent evaluator's
25    determination and the cumulative persisting annual savings
26    goal for the immediately preceding calendar year, as such

 

 

HB3101- 117 -LRB102 15747 SPS 21113 b

1    goals are defined in subsection (d) of this Section. Under
2    subsection (d) of this Section, a utility must first
3    replace energy savings from measures that have expired and
4    would otherwise have to be replaced to meet the applicable
5    savings goals identified in subsection (d) of this Section
6    before any progress toward achievement of its applicable
7    annual incremental goal may be counted. Savings may expire
8    because measures installed in previous years have reached
9    the end of their lives, because measures installed in
10    previous years are producing lower savings in the current
11    year than in the previous year or for other reasons
12    identified by independent evaluators. Notwithstanding
13    anything else set forth in this Section, the difference
14    between the actual annual incremental savings achieved in
15    any given year, including the replacement of energy
16    savings that have expired, and the applicable annual
17    incremental goal shall not affect adjustments to the
18    return on equity for subsequent calendar years under this
19    subsection (j).
20        (8) In this Section, "applicable annual total savings
21    requirement" means the total amount of new annual savings
22    that the utility must achieve in any given year to achieve
23    the applicable annual incremental goal. This shall be
24    equal to the applicable annual incremental goal plus the
25    total new annual savings that are required to replace
26    savings that expired in or at the end of the previous year.

 

 

HB3101- 118 -LRB102 15747 SPS 21113 b

1        (9) The utility shall submit the energy-savings data
2    to the independent evaluator no later than 30 days after
3    the close of the plan year. The independent evaluator
4    shall determine the cumulative persisting annual savings
5    and the utility's performance relative to its applicable
6    annual total savings requirement for a given plan year no
7    later than 120 days after the close of the plan year. The
8    independent evaluator must also estimate the job impacts
9    and other macroeconomic impacts of the utility's
10    efficiency programs. The utility shall submit an
11    informational filing to the Commission no later than 160
12    days after the close of the plan year that attaches the
13    independent evaluator's final report identifying the
14    cumulative persisting annual savings for the year and
15    calculates, under paragraph (7) of this subsection (j), as
16    applicable, the magnitude of any shareholder incentive
17    that the utility has earned.
18        (9.5) The utility must demonstrate how it will ensure
19    that program implementation contractors and energy
20    efficiency installation vendors will meet multiple
21    workforce equity building criteria, including, but not
22    limited to:
23            (i) Ensuring that an amount of program portfolio
24        incentive funding proportional to the population of
25        BIPOC persons within the utility's territory, as
26        updated every 2 years, is administered or installed by

 

 

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1        energy efficiency installation vendors who meet one of
2        the following criteria:
3                (aa) certified under Section 2 of the Business
4            Enterprise for Minorities, Women, and Persons with
5            Disabilities Act; or
6                (bb) certified by another municipal, state,
7            federal, or other certification for disadvantaged
8            businesses; or
9                (cc) submit an affidavit showing that the
10            vendor meets the eligibility criteria for a
11            certification program such as those in subdivision
12            (aa) or (bb); or
13                (dd) if the vendor is a nonprofit, meet any of
14            the criteria in subdivision (aa), (bb), or (cc) or
15            is controlled by a board of directors that
16            consists of 51% or greater BIPOC persons.
17            (ii) Ensuring that program implementation
18        contractors and energy efficiency installation vendors
19        pay employees working on energy efficiency programs at
20        or above the prevailing wage rate when such a wage rate
21        has been published by the Illinois Department of Labor
22        and pay employees working on energy efficiency
23        programs at or above the median wage rate for a similar
24        job description in the nearest metropolitan area when
25        there is no applicable published prevailing wage rate.
26        If necessary, utilities may conduct surveys to

 

 

HB3101- 120 -LRB102 15747 SPS 21113 b

1        establish the median wage rate for a given job
2        description. Utilities shall establish reporting
3        procedures for vendors that ensure compliance with
4        this subsection, but are structured to avoid, wherever
5        possible, placing an undue administrative burden on
6        vendors.
7            (iii) Ensuring that program implementation
8        contractor employees and energy efficiency
9        installation vendor employees are proportional to the
10        population of people of color, as defined in
11        subparagraphs (a) through (e) of paragraph (A)(1) of
12        Section 2 of the Business Enterprise for Minorities,
13        Women, and Persons with Disabilities Act, within the
14        utility's territory, as updated every 2 years.
15            (iv) Ensuring that 30% or more of the energy
16        efficiency installation vendor employees working for
17        vendors reporting to each program implementation
18        contractor are graduates or trainees from
19        equity-focused workforce training programs designated
20        by the Illinois Power Agency or similar programs
21        offering equivalent certifications.
22            (v) Ensuring that vendors who are very small
23        businesses of 5 or fewer full-time employees or
24        businesses that have completed or are participating in
25        contractor incubator programs or entrepreneurship
26        programs designated by the Illinois Power Agency,

 

 

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1        receive a substantial portion of program portfolio
2        funding. Utility plans to achieve this shall include
3        efforts to provide the necessary training and
4        administrative support needed for very small
5        businesses to meet utility-mandated training,
6        certification, insurance, and security-related
7        contract requirements.
8        (9.6) Utilities shall collect data necessary to ensure
9    compliance with paragraph (9.5) no less than quarterly and
10    shall communicate progress toward compliance with
11    paragraph (9.5) to program implementation contractors and
12    energy efficiency installation vendors no less than
13    quarterly. When it seems unlikely that the criteria in
14    paragraph (9.5) will be met, utilities shall work with
15    relevant vendors, providing education, training, and other
16    resources needed to ensure compliance and, where
17    necessary, adjusting or terminating work with vendors that
18    cannot assist with compliance.
19        (10) A utility required to implement efficiency
20    programs under this Section shall report annually to the
21    Illinois Commerce Commission and the General Assembly on
22    how hiring, contracting, job training, and other practices
23    related to its energy efficiency programs enhance the
24    diversity of vendors working on such programs. These
25    reports must include data on vendor and employee
26    diversity, including data on the implementation of

 

 

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1    paragraphs (9.5) and (9.6). If the utility is not meeting
2    the requirements of paragraphs (9.5) and (9.6), the
3    utility shall submit a plan to adjust their activities so
4    that they meet the requirements of paragraphs (9.5) and
5    (9.6) within the following year.
6    (j-5) Energy efficiency potential study. An energy
7efficiency potential study shall be commissioned and overseen
8by the Illinois Commerce Commission. The potential study shall
9be a dual fuel study, addressing both gas and electric
10efficiency potential, such that the requirements both in this
11subsection (j-5) and in subsection (f-5) of Section 8-103B are
12met in an integrated and cost-efficient manner. The potential
13study shall be designed and conducted with input from a
14Potential Study Stakeholder Committee established by the
15Commission. This Committee shall be composed of
16representatives from each electric utility, the Illinois
17Attorney General's office, at least 2 environmental
18stakeholders, at least one community-based organization, and
19additional parties representing consumers. The Committee shall
20provide input, at a minimum, into the scope of work for the
21studies, the selection of vendors to perform the studies in
22accordance with appropriate confidentiality and conflict of
23interest provisions, and draft work products. The Committee
24shall make best efforts to achieve consensus on the key
25elements of the potential study, including:
26        (i) savings potential from efficiency measures and

 

 

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1    program concepts that are known at the time of the study;
2        (ii) likely emergence of new technology or new program
3    concepts that could emerge, including proxies for new
4    technologies or program concepts that cannot be
5    specifically named, identified, or characterized at the
6    time of the study;
7        (iii) likely savings potential from efficiency
8    measures that may be unique to individual industries or
9    individual facilities; and
10        (iv) the experience of other similar utilities, areas
11    and jurisdictions in maximizing achievement of
12    cost-effective savings.
13    When the committee is not able to reach consensus, the
14Commission shall make the final decision.
15    (k) No more than 6% of energy efficiency and
16demand-response program revenue may be allocated for research,
17development, or pilot deployment of new equipment or measures.
18    (l) When practical, gas utilities shall incorporate
19advanced metering infrastructure data into the planning,
20implementation, and evaluation of energy efficiency measures
21and programs, subject to the data privacy and confidentiality
22protections of applicable law.
23    (m) The independent evaluator shall follow the guidelines
24and use the savings set forth in Commission-approved energy
25efficiency policy manuals and technical reference manuals, as
26each may be updated from time to time. Until measure life

 

 

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1values for energy efficiency measures implemented for
2low-income households under subsection (f) of this Section are
3incorporated into such Commission-approved manuals, the
4low-income measures shall have the same measure life values
5that are established for same measures implemented in
6households that are not low-income households.
 
7    (220 ILCS 5/16-128B)
8    Sec. 16-128B. Qualified energy efficiency installers.
9    (a) Within 18 months after the effective date of this
10amendatory Act of the 99th General Assembly, the Commission
11shall adopt rules, including emergency rules, establishing a
12process for entities installing energy efficiency measures to
13certify compliance with the requirements of this Section.
14    The process shall include an option to complete the
15certification electronically by completing forms on-line. An
16entity installing energy efficiency measures shall be
17permitted to complete the certification after the subject work
18has been completed.
19    The Commission shall maintain on its website a list of
20entities installing energy efficiency measures that have
21successfully completed the certification process.
22    (b) In addition to any authority granted to the Commission
23under this Act, the Commission may:
24        (1) determine which entities are subject to
25    certification under this Section;

 

 

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1        (2) impose reasonable certification fees and
2    penalties;
3        (3) adopt disciplinary procedures;
4        (4) investigate any and all activities subject to this
5    Section, including violations thereof;
6        (5) adopt procedures to issue or renew, or to refuse
7    to issue or renew, a certification or to revoke, suspend,
8    place on probation, reprimand, or otherwise discipline a
9    certified entity under this Act or take other enforcement
10    action against an entity subject to this Section; and
11        (6) prescribe forms to be issued for the
12    administration and enforcement of this Section.
13    (c) An electric utility may not provide a retail customer
14with a rebate or other energy efficiency incentive for a
15measure that exceeds a minimal amount determined by the
16Commission unless the customer provides the electric utility
17with (1) a certification that the person installing the energy
18efficiency measure was a self-installer; or (2) evidence that
19the energy efficiency measure was installed by an entity
20certified under this Section that is also in good standing
21with the Commission.
22    (d) The Commission shall:
23        (1) require entities installing energy efficiency
24    measures to be certified to do business and to be bonded in
25    this State;
26        (2) ensure that entities installing energy efficiency

 

 

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1    measures have the requisite knowledge, skill, training,
2    experience, and competence to perform functions in a safe
3    and reliable manner as required under subsection (a) of
4    Section 16-128 of this Act;
5        (3) ensure that entities installing energy efficiency
6    measures conform to applicable building and electrical
7    codes;
8        (4) ensure that all entities installing energy
9    efficiency measures meet recognized industry standards as
10    the Commission deems appropriate;
11        (5) include any additional requirements that the
12    Commission deems reasonable to ensure that entities
13    installing energy efficiency measures meet adequate
14    training, financial, and competency requirements;
15        (6) ensure that all entities installing energy
16    efficiency measures obtain certificates of insurance in
17    sufficient amounts and coverages that the Commission so
18    determines; and
19        (7) identify and determine the training or other
20    programs by which persons or entities may obtain the
21    requisite training, skill, or experience necessary to
22    achieve and maintain compliance with the requirements of
23    this Section.
24    (e) Fees and penalties collected under this Section shall
25be deposited into the Public Utility Fund and used to fund the
26Commission's compliance with the obligations imposed by this

 

 

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1Section.
2    (f) The rules adopted under this Section shall specify the
3initial dates for compliance with the rules.
4    (g) For purposes of this Section, entities installing
5energy efficiency measures shall endeavor to support the
6diversity goals of this State by attracting, developing,
7retaining, and providing opportunities to employees of all
8backgrounds and by supporting women-owned female-owned, black,
9indigenous, and people of color-owned minority-owned, and
10veteran-owned, and small businesses, and nonprofit
11organizations, worker-owned cooperatives, and other entities.
12(Source: P.A. 99-906, eff. 6-1-17.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    New Act
4    20 ILCS 3125/10
5    20 ILCS 3125/15
6    20 ILCS 3125/20
7    20 ILCS 3125/30
8    20 ILCS 3125/45
9    20 ILCS 3125/55 new
10    220 ILCS 5/8-103B
11    220 ILCS 5/8-104.1 new
12    220 ILCS 5/16-128B