103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1842

 

Introduced 2/9/2023, by Sen. Elgie R. Sims, Jr.

 

SYNOPSIS AS INTRODUCED:
 
305 ILCS 20/2  from Ch. 111 2/3, par. 1402
305 ILCS 20/4  from Ch. 111 2/3, par. 1404
305 ILCS 20/5  from Ch. 111 2/3, par. 1405
305 ILCS 20/6  from Ch. 111 2/3, par. 1406
305 ILCS 20/13
305 ILCS 20/18

    Amends the Energy Assistance Act. Authorizes the Department of Commerce and Economic Opportunity to institute a year-round program (rather than program) to ensure the availability and affordability of heating and electric service to low income utility customers. Requires the Department to take all actions necessary to ensure year-round access to energy assistance by no later than July 1, 2024. Provides that, in setting the annual eligibility level for assistance under the Act, the Department shall not set a limit higher than 200% (rather than 150%) of the federal nonfarm poverty level as established by the federal Office of Management and Budget or 60% of the State median income for the current State fiscal year as established by the U.S. Department of Health and Human Services. Provides that the Department shall ensure that persons applying for energy assistance shall have the ability to establish eligibility through proof of enrollment in other State and federal assistance programs. Makes changes to provisions concerning the monthly Energy Assistance Charge assessed on customer accounts by public utilities, electric cooperatives, and municipal utilities. Provides that, beginning January 1, 2024 and for the next 10 years thereafter, electric and gas utilities shall annually contribute to the Supplemental Low-Income Energy Assistance Fund 5% net operating income based on their most recent rate order approved by the Illinois Commerce Commission. Makes changes concerning the Percentage of Income Payment Plan and other matters. Provides that an energy provider that receives payments from the Department from the Supplemental Low-Income Energy Assistance Fund, that provides confirmation to an administering agency that an applicant is a customer, shall ensure that the applicant customer is not disconnected from energy service while an application is pending.


LRB103 27290 KTG 53661 b

 

 

A BILL FOR

 

SB1842LRB103 27290 KTG 53661 b

1    AN ACT concerning public aid.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Energy Assistance Act is amended by
5changing Sections 2, 4, 5, 6, 13, and 18 as follows:
 
6    (305 ILCS 20/2)  (from Ch. 111 2/3, par. 1402)
7    Sec. 2. Findings and Intent.
8    (a) The General Assembly finds that:
9        (1) the health, welfare, and prosperity of the people
10    of the State of Illinois require that all utility
11    customers citizens receive essential levels of heat and
12    electric service regardless of economic circumstance;
13        (2) public utilities and other entities providing such
14    services are entitled to receive proper payment for
15    services actually rendered;
16        (3) variability of Federal low income energy
17    assistance funding necessitates a State response to ensure
18    the continuity and the further development of energy
19    assistance and related policies and programs within
20    Illinois;
21        (4) energy assistance policies and programs in effect
22    in Illinois have benefited all Illinois utility customers
23    citizens, and should therefore be continued with the

 

 

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1    modifications provided herein; and
2        (5) low-income households are unable to afford
3    essential utility services and other necessities, such as
4    food, shelter, and medical care; the health and safety of
5    those who are unable to afford essential utility services
6    suffer when monthly payments for these services exceed a
7    reasonable percentage of the customer's household income;
8    costs of collecting past due bills and uncollectible
9    balances are reflected in rates paid by all ratepayers;
10    society benefits if essential utility services are
11    affordable and arrearages and disconnections are minimized
12    for those most in need.
13    (b) Consistent with its findings, the General Assembly
14declares that it is the policy of the State that:
15        (1) a comprehensive low income energy assistance
16    policy and program should be established which
17    incorporates income assistance, home weatherization, and
18    other measures to ensure that utility customers citizens
19    have access to affordable energy services;
20        (2) the ability of public utilities and other entities
21    to receive just compensation for providing services should
22    not be jeopardized by this policy;
23        (3) resources applied in achieving this policy should
24    be coordinated and efficiently utilized through the
25    integration of public programs and through the targeting
26    of assistance; and

 

 

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1        (4) the State should utilize all appropriate and
2    available means to fund this program and, to the extent
3    possible, should identify and utilize sources of funding
4    which complement State tax revenues.
5(Source: P.A. 96-33, eff. 7-10-09.)
 
6    (305 ILCS 20/4)  (from Ch. 111 2/3, par. 1404)
7    Sec. 4. Energy Assistance Program.
8    (a) The Department of Commerce and Economic Opportunity is
9hereby authorized to institute a year-round program to ensure
10the availability and affordability of heating and electric
11service to low income utility customers citizens. The
12Department shall implement the program by rule promulgated
13pursuant to the Illinois Administrative Procedure Act. The
14program shall be consistent with the purposes and objectives
15of this Act and with all other specific requirements provided
16herein. The Department may enter into such contracts and other
17agreements with local agencies as may be necessary for the
18purpose of administering the energy assistance program. The
19Department shall take all actions necessary to ensure
20year-round access to energy assistance provided under this
21Section by no later than July 1, 2024.
22    (b) Nothing in this Act shall be construed as altering or
23limiting the authority conferred on the Illinois Commerce
24Commission by the Public Utilities Act to regulate all aspects
25of the provision of public utility service, including but not

 

 

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1limited to the authority to make rules and adjudicate disputes
2between utilities and customers related to eligibility for
3utility service, deposits, payment practices, discontinuance
4of service, and the treatment of arrearages owing for
5previously rendered utility service.
6    (c) The Department of Commerce and Economic Opportunity is
7authorized to institute an outreach program directed at
8low-income minority heads of households and heads of
9households age 60 or older. The Department shall implement the
10program through rules adopted pursuant to the Illinois
11Administrative Procedure Act. The program shall be consistent
12with the purposes and objectives of this Act and with all other
13specific requirements set forth in this subsection (c).
14(Source: P.A. 95-331, eff. 8-21-07; 95-532, eff. 8-28-07;
1596-154, eff. 1-1-10.)
 
16    (305 ILCS 20/5)  (from Ch. 111 2/3, par. 1405)
17    Sec. 5. Policy Advisory Council.
18    (a) Within the Department of Commerce and Economic
19Opportunity is created a Low Income Energy Assistance Policy
20Advisory Council.
21    (b) The Council shall be chaired by the Director of
22Commerce and Economic Opportunity or his or her designee. The
23There shall be 19 members of the Low Income Energy Assistance
24Policy Advisory Council shall include , including the
25chairperson and the following members:

 

 

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1        (1) one member designated by the Illinois Commerce
2    Commission;
3        (2) (blank);
4        (2.5) one member designated by the Office of the
5    Attorney General;
6        (3) one member designated by the Illinois Energy
7    Association to represent electric public utilities serving
8    in excess of 1 million customers in this State;
9        (4) one member agreed upon by gas public utilities
10    that serve more than 500,000 and fewer than 1,500,000
11    customers in this State;
12        (5) one member agreed upon by gas public utilities
13    that serve 1,500,000 or more customers in this State;
14        (6) one member designated by the Illinois Energy
15    Association to represent combination gas and electric
16    public utilities;
17        (7) one member agreed upon by the Illinois Municipal
18    Electric Agency and the Association of Illinois Electric
19    Cooperatives;
20        (8) one member agreed upon by the Illinois Industrial
21    Energy Consumers;
22        (9) three members designated by the Department to
23    represent low income energy consumers;
24        (10) two members designated by the Illinois Community
25    Action Association to represent local agencies that assist
26    in the administration of this Act;

 

 

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1        (11) one member designated by the Citizens Utility
2    Board to represent residential energy consumers;
3        (12) one member designated by the Illinois Retail
4    Merchants Association to represent commercial energy
5    customers;
6        (13) one member designated by the Department to
7    represent independent energy providers; and
8        (14) three members designated by the Mayor of the City
9    of Chicago.
10    (c) Designated and appointed members shall serve 2 year
11terms and until their successors are appointed and qualified.
12The designating organization shall notify the chairperson of
13any changes or substitutions of a designee within 10 business
14days of a change or substitution. Members shall serve without
15compensation, but may receive reimbursement for actual costs
16incurred in fulfilling their duties as members of the Council.
17    (d) The Council shall have the following duties:
18        (1) to monitor the administration of this Act to
19    ensure effective, efficient, and coordinated program
20    development and implementation;
21        (2) to assist the Department in developing and
22    administering rules and regulations required to be
23    promulgated pursuant to this Act in a manner consistent
24    with the purpose and objectives of this Act;
25        (3) to facilitate and coordinate the collection and
26    exchange of all program data and other information needed

 

 

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1    by the Department and others in fulfilling their duties
2    pursuant to this Act;
3        (4) to advise the Department on the proper level of
4    support required for effective administration of the Act;
5        (5) to provide a written opinion concerning any
6    regulation proposed pursuant to this Act, and to review
7    and comment on any energy assistance or related plan
8    required to be prepared by the Department;
9        (6) to advise the Department on the use of funds
10    collected pursuant to Section 11 of this Act, and on any
11    changes to existing low income energy assistance programs
12    to make effective use of such funds, so long as such uses
13    and changes are consistent with the requirements of the
14    Act.
15(Source: P.A. 97-916, eff. 8-9-12.)
 
16    (305 ILCS 20/6)  (from Ch. 111 2/3, par. 1406)
17    Sec. 6. Eligibility, conditions of participation, and
18energy assistance.
19    (a) Any person who is a resident of the State of Illinois
20and whose household income is not greater than an amount
21determined annually by the Department, in consultation with
22the Policy Advisory Council, may apply for assistance pursuant
23to this Act in accordance with regulations promulgated by the
24Department. In setting the annual eligibility level, the
25Department shall consider the amount of available funding and

 

 

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1may not set a limit higher than 200% 150% of the federal
2nonfarm poverty level as established by the federal Office of
3Management and Budget or 60% of the State median income for the
4current State fiscal year as established by the U.S.
5Department of Health and Human Services; except that for the
6period from the effective date of this amendatory Act of the
7101st General Assembly through June 30, 2021, the Department
8may establish limits not higher than 200% of that poverty
9level. The Department, in consultation with the Policy
10Advisory Council, may adjust the percentage of poverty level
11annually in accordance with federal guidelines and based on
12funding availability.
13    (b) Applicants who qualify for assistance pursuant to
14subsection (a) of this Section shall, subject to appropriation
15from the General Assembly and subject to availability of funds
16to the Department, receive energy assistance as provided by
17this Act. The Department, upon receipt of monies authorized
18pursuant to this Act for energy assistance, shall commit funds
19for each qualified applicant in an amount determined by the
20Department. In determining the amounts of assistance to be
21provided to or on behalf of a qualified applicant, the
22Department shall ensure that the highest amounts of assistance
23go to households with the greatest energy costs in relation to
24household income. The Department shall include factors such as
25energy costs, household size, household income, and region of
26the State when determining individual household benefits. In

 

 

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1setting assistance levels, the Department shall attempt to
2provide assistance to approximately the same number of
3households who participated in the 1991 Residential Energy
4Assistance Partnership Program. Such assistance levels shall
5be adjusted annually on the basis of funding availability and
6energy costs. In promulgating rules for the administration of
7this Section the Department shall assure that a minimum of 1/3
8of funds available for benefits to eligible households with
9the lowest incomes and that elderly households, households
10with children under the age of 6 years old, and households with
11persons with disabilities are offered a priority application
12period.
13    (c) If the applicant is not a customer of record of an
14energy provider for energy services or an applicant for such
15service, such applicant shall receive a direct energy
16assistance payment in an amount established by the Department
17for all such applicants under this Act; provided, however,
18that such an applicant must have rental expenses for housing
19greater than 30% of household income.
20    (c-1) This subsection shall apply only in cases where: (1)
21the applicant is not a customer of record of an energy provider
22because energy services are provided by the owner of the unit
23as a portion of the rent; (2) the applicant resides in housing
24subsidized or developed with funds provided under the Rental
25Housing Support Program Act or under a similar locally funded
26rent subsidy program, or is the voucher holder who resides in a

 

 

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1rental unit within the State of Illinois and whose monthly
2rent is subsidized by the tenant-based Housing Choice Voucher
3Program under Section 8 of the U.S. Housing Act of 1937; and
4(3) the rental expenses for housing are no more than 30% of
5household income. In such cases, the household may apply for
6an energy assistance payment under this Act and the owner of
7the housing unit shall cooperate with the applicant by
8providing documentation of the energy costs for that unit. Any
9compensation paid to the energy provider who supplied energy
10services to the household shall be paid on behalf of the owner
11of the housing unit providing energy services to the
12household. The Department shall report annually to the General
13Assembly on the number of households receiving energy
14assistance under this subsection and the cost of such
15assistance. The provisions of this subsection (c-1), other
16than this sentence, are inoperative after August 31, 2012.
17    (d) If the applicant is a customer of an energy provider,
18such applicant shall receive energy assistance in an amount
19established by the Department for all such applicants under
20this Act, such amount to be paid by the Department to the
21energy provider supplying winter energy service to such
22applicant. Such applicant shall:
23        (i) make all reasonable efforts to apply to any other
24    appropriate source of public energy assistance; and
25        (ii) sign a waiver permitting the Department to
26    receive income information from any public or private

 

 

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1    agency providing income or energy assistance and from any
2    employer, whether public or private.
3    (e) Any qualified applicant pursuant to this Section may
4receive or have paid on such applicant's behalf an emergency
5assistance payment to enable such applicant to obtain access
6to winter energy services. Any such payments shall be made in
7accordance with regulations of the Department.
8    (f) The Department may, if sufficient funds are available,
9provide additional benefits to certain qualified applicants:
10        (i) for the reduction of past due amounts owed to
11    energy providers;
12        (ii) to assist the household in responding to
13    excessively high summer temperatures or energy costs.
14    Households containing elderly members, children, a person
15    with a disability, or a person with a medical need for
16    conditioned air shall receive priority for receipt of such
17    benefits; and
18        (iii) for the installation of energy conservation
19    measures, health and safety measures, healthy home
20    measures, home improvement measures to help alleviate
21    deferrals from weatherization activities, and renewable
22    energy retrofits.
23    (g) The Department shall ensure that persons applying for
24assistance provided for under this Section shall have the
25ability to establish eligibility through proof of enrollment
26in other State and federal assistance programs with income

 

 

SB1842- 12 -LRB103 27290 KTG 53661 b

1eligibility requirements that do not exceed 60% of State
2median income or 200% the federal nonfarm poverty level,
3whichever is greater. The Department shall take all measures
4necessary to coordinate State assistance program databases to
5minimize applicant proof of eligibility requirements to enable
6verification of participation in other means-tested programs
7administered by other agencies, and in a manner that protects
8the privacy of an individual's personal information provided
9to such agencies.
10(Source: P.A. 101-636, eff. 6-10-20; 102-16, eff. 6-17-21;
11102-176, eff. 6-1-22; 102-699, eff. 4-19-22.)
 
12    (305 ILCS 20/13)
13    (Section scheduled to be repealed on January 1, 2025)
14    Sec. 13. Supplemental Low-Income Energy Assistance Fund.
15    (a) The Supplemental Low-Income Energy Assistance Fund is
16hereby created as a special fund in the State Treasury. The
17Supplemental Low-Income Energy Assistance Fund is authorized
18to receive moneys from voluntary donations from individuals,
19foundations, corporations, and other sources, moneys received
20pursuant to Section 17, and, by statutory deposit, the moneys
21collected pursuant to this Section. The Fund is also
22authorized to receive voluntary donations from individuals,
23foundations, corporations, and other sources. Subject to
24appropriation, the Department shall use moneys from the
25Supplemental Low-Income Energy Assistance Fund for: (i)

 

 

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1payments to electric or gas public utilities, municipal
2electric or gas utilities, and electric cooperatives on behalf
3of their customers who are participants in the program
4authorized by Sections 4 and 18 of this Act; (ii) the provision
5of weatherization services, including, but not limited to, the
6installation of energy conservation measures, health and
7safety measures, healthy home measures, home improvement
8measures to alleviate the deferrals of certain projects,
9including, but not limited to, roofs and foundation repairs,
10and renewable energy retrofits; and (iii) administration of
11the Supplemental Low-Income Energy Assistance Fund. All other
12deposits outside of the Energy Assistance Charge as set forth
13in subsection (b) are not subject to the percentage
14restrictions related to administrative and weatherization
15expenses provided in this subsection. The yearly expenditures
16for weatherization may not exceed 10% of the amount collected
17during the year pursuant to this Section, except when unspent
18funds from the Supplemental Low-Income Energy Assistance Fund
19are reallocated from a previous year; any unspent balance of
20the 10% weatherization allowance may be utilized for
21weatherization expenses in the year they are reallocated. The
22yearly administrative expenses of the Supplemental Low-Income
23Energy Assistance Fund may not exceed 13% of the amount
24collected during that year pursuant to this Section, except
25when unspent funds from the Supplemental Low-Income Energy
26Assistance Fund are reallocated from a previous year; any

 

 

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1unspent balance of the 13% administrative allowance may be
2utilized for administrative expenses in the year they are
3reallocated. Of the 13% administrative allowance, no less than
48% shall be provided to Local Administrative Agencies for
5administrative expenses.
6    (b) Notwithstanding the provisions of Section 16-111 of
7the Public Utilities Act but subject to subsection (k) of this
8Section, each public utility, electric cooperative, as defined
9in Section 3.4 of the Electric Supplier Act, and municipal
10utility, as referenced in Section 3-105 of the Public
11Utilities Act, that is engaged in the delivery of electricity
12or the distribution of natural gas within the State of
13Illinois shall, effective January 1, 2021, assess each of its
14customer accounts a monthly Energy Assistance Charge for the
15Supplemental Low-Income Energy Assistance Fund. The delivering
16public utility, municipal electric or gas utility, or electric
17or gas cooperative for a self-assessing purchaser remains
18subject to the collection of the fee imposed by this Section.
19The monthly charge shall be as follows:
20        (1) Base Energy Assistance Charge per month on each
21    account for residential electrical service;
22        (2) Base Energy Assistance Charge per month on each
23    account for residential gas service;
24        (3) Ten times the Base Energy Assistance Charge per
25    month on each account for non-residential electric service
26    which had less than 10 megawatts of peak demand during the

 

 

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1    previous calendar year;
2        (4) Ten times the Base Energy Assistance Charge per
3    month on each account for non-residential gas service
4    which had distributed to it less than 4,000,000 therms of
5    gas during the previous calendar year;
6        (5) Seven hundred and fifty Three hundred and
7    seventy-five times the Base Energy Assistance Charge per
8    month on each account for non-residential electric service
9    which had 10 megawatts or greater of peak demand during
10    the previous calendar year; and
11        (6) Seven hundred and fifty Three hundred and
12    seventy-five times the Base Energy Assistance Charge per
13    month on each account for non-residential gas service
14    which had 4,000,000 or more therms of gas distributed to
15    it during the previous calendar year.
16    For any utility included in the Percentage of Income
17Payment Plan (PIPP) program, the Base Energy Assistance Charge
18shall be $0.96 per month beginning July 1, 2023, with $0.16 per
19month of that amount being available to the utility for an
20Arrearage Reduction Program. For any utility not included in
21the PIPP program, the Base Energy Assistance Charge shall be
22$0.80 per month beginning July 1, 2023.
23    The Base Energy Assistance Charge shall be $0.48 per month
24for the calendar year beginning January 1, 2022 and shall
25increase by $0.16 per month for any calendar year, provided no
26less than 80% of the previous State fiscal year's available

 

 

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1Supplemental Low-Income Energy Assistance Fund funding was
2exhausted. The maximum Base Energy Assistance Charge shall not
3exceed $0.96 per month for any calendar year.
4    The incremental change to such charges imposed by Public
5Act 99-933 and this amendatory Act of the 102nd General
6Assembly shall not (i) be used for any purpose other than to
7directly assist customers and (ii) be applicable to utilities
8serving less than 100,000 customers in Illinois on January 1,
92021. The incremental change to such charges imposed by this
10amendatory Act of the 102nd General Assembly are intended to
11increase utilization of the Percentage of Income Payment Plan
12(PIPP or PIP Plan) and the Low Income Home Energy Assistance
13Program (LIHEAP) and shall be applied such that PIP Plan and
14LIHEAP enrollment is at least doubled, as compared to 2020
15enrollment, by 2024.
16    In addition, electric and gas utilities have committed,
17and shall contribute, beginning on January 1, 2024 and
18continuing for 10 years thereafter, an annual contribution of
195% of net operating income based on their most recent rate
20order approved by the Illinois Commerce Commission to the
21Supplemental Low-Income Energy Assistance Fund. a one-time
22payment of $22 million to the Fund, within 10 days after the
23effective date of the tariffs established pursuant to Sections
2416-111.8 and 19-145 of the Public Utilities Act to be used for
25the Department's cost of implementing the programs described
26in Section 18 of this amendatory Act of the 96th General

 

 

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1Assembly, the Arrearage Reduction Program described in Section
218, and the programs described in Section 8-105 of the Public
3Utilities Act. If a utility elects not to file a rider within
490 days after the effective date of this amendatory Act of the
596th General Assembly, then the contribution from such utility
6shall be made no later than February 1, 2010.
7    (c) For purposes of this Section:
8        (1) "residential electric service" means electric
9    utility service for household purposes delivered to a
10    dwelling of 2 or fewer units which is billed under a
11    residential rate, or electric utility service for
12    household purposes delivered to a dwelling unit or units
13    which is billed under a residential rate and is registered
14    by a separate meter for each dwelling unit;
15        (2) "residential gas service" means gas utility
16    service for household purposes distributed to a dwelling
17    of 2 or fewer units which is billed under a residential
18    rate, or gas utility service for household purposes
19    distributed to a dwelling unit or units which is billed
20    under a residential rate and is registered by a separate
21    meter for each dwelling unit;
22        (3) "non-residential electric service" means electric
23    utility service which is not residential electric service;
24    and
25        (4) "non-residential gas service" means gas utility
26    service which is not residential gas service.

 

 

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1    (d) Within 30 days after the effective date of this
2amendatory Act of the 96th General Assembly, each public
3utility engaged in the delivery of electricity or the
4distribution of natural gas shall file with the Illinois
5Commerce Commission tariffs incorporating the Energy
6Assistance Charge in other charges stated in such tariffs,
7which shall become effective no later than the beginning of
8the first billing cycle following such filing.
9    (e) The Energy Assistance Charge assessed by electric and
10gas public utilities shall be considered a charge for public
11utility service.
12    (f) By the 20th day of the month following the month in
13which the charges imposed by the Section were collected, each
14public utility, municipal utility, and electric cooperative
15shall remit to the Department of Revenue all moneys received
16as payment of the Energy Assistance Charge on a return
17prescribed and furnished by the Department of Revenue showing
18such information as the Department of Revenue may reasonably
19require; provided, however, that a utility offering an
20Arrearage Reduction Program or Supplemental Arrearage
21Reduction Program pursuant to Section 18 of this Act shall be
22entitled to net those amounts necessary to fund and recover
23the costs of such Programs as authorized by that Section that
24is no more than the incremental change in such Energy
25Assistance Charge authorized by Public Act 96-33. If a
26customer makes a partial payment, a public utility, municipal

 

 

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1utility, or electric cooperative may elect either: (i) to
2apply such partial payments first to amounts owed to the
3utility or cooperative for its services and then to payment
4for the Energy Assistance Charge or (ii) to apply such partial
5payments on a pro-rata basis between amounts owed to the
6utility or cooperative for its services and to payment for the
7Energy Assistance Charge.
8    If any payment provided for in this Section exceeds the
9distributor's liabilities under this Act, as shown on an
10original return, the Department may authorize the distributor
11to credit such excess payment against liability subsequently
12to be remitted to the Department under this Act, in accordance
13with reasonable rules adopted by the Department. If the
14Department subsequently determines that all or any part of the
15credit taken was not actually due to the distributor, the
16distributor's discount shall be reduced by an amount equal to
17the difference between the discount as applied to the credit
18taken and that actually due, and that distributor shall be
19liable for penalties and interest on such difference.
20    (g) The Department of Revenue shall deposit into the
21Supplemental Low-Income Energy Assistance Fund all moneys
22remitted to it in accordance with subsection (f) of this
23Section. The utilities shall coordinate with the Department to
24establish an equitable and practical methodology for
25implementing this subsection (g) beginning with the 2010
26program year.

 

 

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1    (h) On or before December 31, 2002, the Department shall
2prepare a report for the General Assembly on the expenditure
3of funds appropriated from the Low-Income Energy Assistance
4Block Grant Fund for the program authorized under Section 4 of
5this Act.
6    (i) The Department of Revenue may establish such rules as
7it deems necessary to implement this Section.
8    (j) The Department of Commerce and Economic Opportunity
9may establish such rules as it deems necessary to implement
10this Section.
11    (k) The charges imposed by this Section shall only apply
12to customers of municipal electric or gas utilities and
13electric or gas cooperatives if the municipal electric or gas
14utility or electric or gas cooperative makes an affirmative
15decision to impose the charge. If a municipal electric or gas
16utility or an electric cooperative makes an affirmative
17decision to impose the charge provided by this Section, the
18municipal electric or gas utility or electric cooperative
19shall inform the Department of Revenue in writing of such
20decision when it begins to impose the charge. If a municipal
21electric or gas utility or electric or gas cooperative does
22not assess this charge, the Department may not use funds from
23the Supplemental Low-Income Energy Assistance Fund to provide
24benefits to its customers under the program authorized by
25Section 4 of this Act.
26    In its use of federal funds under this Act, the Department

 

 

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1may not cause a disproportionate share of those federal funds
2to benefit customers of systems which do not assess the charge
3provided by this Section.
4    This Section is repealed on January 1, 2025 unless renewed
5by action of the General Assembly.
6(Source: P.A. 102-16, eff. 6-17-21; 102-176, eff. 6-1-22;
7102-671, eff. 11-30-21; 102-673, eff. 11-30-21; 102-699, eff.
84-19-22.)
 
9    (305 ILCS 20/18)
10    Sec. 18. Financial assistance; payment plans.
11    (a) The Percentage of Income Payment Plan (PIPP or PIP
12Plan) is hereby created as a mandatory bill payment assistance
13program for low-income residential customers of utilities
14serving more than 100,000 retail customers as of January 1,
152021. The PIP Plan will:
16        (1) bring participants' gas and electric bills into
17    the range of affordability;
18        (2) provide incentives for participants to make timely
19    payments;
20        (3) encourage participants to reduce usage and
21    participate in conservation and energy efficiency measures
22    that reduce the customer's bill and payment requirements;
23        (4) identify participants whose homes are most in need
24    of weatherization; and
25        (5) endeavor to maximize participation and spend at

 

 

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1    least 80% of the funding available for the year.
2    (b) For purposes of this Section:
3        (1) "LIHEAP" means the energy assistance program
4    established under the Illinois Energy Assistance Act and
5    the Low-Income Home Energy Assistance Act of 1981.
6        (2) "Plan participant" is an eligible participant who
7    is also eligible for the PIPP and who will receive either a
8    percentage of income payment credit under the PIPP
9    criteria set forth in this Act or a benefit pursuant to
10    Section 4 of this Act. Plan participants are a subset of
11    eligible participants.
12        (3) "Pre-program arrears" means the amount a plan
13    participant owes for gas or electric service at the time
14    the participant is determined to be eligible for the PIPP
15    or the program set forth in Section 4 of this Act.
16        (4) "Eligible participant" means any person who has
17    applied for, been accepted and is receiving residential
18    service from a gas or electric utility and who is also
19    eligible for LIHEAP or otherwise satisfies the eligibility
20    criteria set forth in paragraph (1) of subsection (c).
21    (c) The PIP Plan shall be administered as follows:
22        (1) The Department shall coordinate with Local
23    Administrative Agencies (LAAs), to determine eligibility
24    for the Illinois Low Income Home Energy Assistance Program
25    (LIHEAP) pursuant to the Energy Assistance Act, provided
26    that eligible income shall be no more than 200% 150% of the

 

 

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1    poverty level or 60% of the State median income, except
2    that for the period from the effective date of this
3    amendatory Act of the 101st General Assembly through June
4    30, 2021, eligible income shall be no more than 200% of the
5    poverty level. Applicants will be screened to determine
6    whether the applicant's projected payments for electric
7    service or natural gas service over a 12-month period
8    exceed the criteria established in this Section. The
9    Department, in consultation with the Policy Advisory
10    Council, may adjust the percentage of poverty level
11    annually to determine income eligibility. To maintain the
12    financial integrity of the program, the Department may
13    limit eligibility to households with income below 125% of
14    the poverty level.
15        (2) The Department shall establish the percentage of
16    income formula to determine the amount of a monthly credit
17    for participants with eligible income based on poverty
18    level. Credits will be applied to PIP Plan participants'
19    utility bills based on the portion of the bill that is the
20    responsibility of the participant provided that the
21    percentage shall be no more than a total of 6% of the
22    relevant income for gas and electric utility bills
23    combined, but in any event no less than $10 per month,
24    unless the household does not pay directly for heat, in
25    which case its payment shall be 2.4% of income but in any
26    event no less than $5 per month. The Department, in

 

 

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1    consultation with the Policy Advisory Council, may adjust
2    such monthly credit amounts annually and may establish a
3    minimum credit amount based on the cost of administering
4    the program and may deny credits to otherwise eligible
5    participants if the cost of administering the credit
6    exceeds the actual amount of any monthly credit to a
7    participant. If the participant takes both gas and
8    electric service, 50% of the credit shall be allocated to
9    the entity that provides the participant's primary energy
10    supply for heating. Each participant shall enter into a
11    levelized payment plan for, as applicable, gas and
12    electric service and such plans shall be implemented by
13    the utility so that a participant's usage and required
14    payments are reviewed and adjusted regularly, but no more
15    frequently than quarterly. Nothing in this Section is
16    intended to prohibit a customer, who is otherwise eligible
17    for LIHEAP, from participating in the program described in
18    Section 4 of this Act. Eligible participants who receive
19    such a benefit shall be considered plan participants and
20    shall be eligible to participate in the Arrearage
21    Reduction Program described in item (5) of this subsection
22    (c).
23        (3) The Department shall remit, through the LAAs, to
24    the utility or participating alternative supplier that
25    portion of the plan participant's bill that is not the
26    responsibility of the participant. In the event that the

 

 

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1    Department fails to timely remit payment to the utility,
2    the utility shall be entitled to recover all costs related
3    to such nonpayment through the automatic adjustment clause
4    tariffs established pursuant to Section 16-111.8 and
5    Section 19-145 of the Public Utilities Act. For purposes
6    of this item (3) of this subsection (c), payment is due on
7    the date specified on the participant's bill. The
8    Department, the Department of Revenue and LAAs shall adopt
9    processes that provide for the timely payment required by
10    this item (3) of this subsection (c).
11        (4) A plan participant is responsible for all actual
12    charges for utility service in excess of the PIPP credit.
13    Notwithstanding this requirement, any actual charges
14    incurred by plan participants still owed at the time of a
15    PIP program annual benefit reconciliation that exceed the
16    plan benefit cap provided for by the Department shall be
17    categorized as pre-program arrears in the following
18    calendar year and not be included in the calculation of
19    the levelized payment plan. Pre-program arrears that are
20    included in the Arrearage Reduction Program described in
21    item (5) of this subsection (c) shall not be included in
22    the calculation of the levelized payment plan. Emergency
23    or crisis assistance payments shall not affect the amount
24    of any PIPP credit to which a participant is entitled.
25        (5) Electric and gas utilities subject to this Section
26    shall implement an Arrearage Reduction Program (ARP) for

 

 

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1    plan participants as follows: for each month that a plan
2    participant timely pays his or her utility bill, the
3    utility shall apply a credit to a portion of the
4    participant's pre-program arrears, if any, equal to
5    one-twelfth of such arrearage provided that the total
6    amount of arrearage credits shall equal no more than
7    $1,000 annually for each participant for gas and no more
8    than $1,000 annually for each participant for electricity.
9    In the third year of the PIPP, the Department, in
10    consultation with the Policy Advisory Council established
11    pursuant to Section 5 of this Act, shall determine by rule
12    an appropriate per participant total cap on such amounts,
13    if any. Those plan participants participating in the ARP
14    shall not be subject to the imposition of any additional
15    late payment fees on pre-program arrears covered by the
16    ARP. In all other respects, the utility shall bill and
17    collect the monthly bill of a plan participant pursuant to
18    the same rules, regulations, programs and policies as
19    applicable to residential customers generally.
20    Participation in the Arrearage Reduction Program shall be
21    limited to the maximum amount of funds available as set
22    forth in subsection (f) of Section 13 of this Act. In the
23    event any donated funds under Section 13 of this Act are
24    specifically designated for the purpose of funding the
25    ARP, the Department shall remit such amounts to the
26    utilities upon verification that such funds are needed to

 

 

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1    fund the ARP. Nothing in this Section shall preclude a
2    utility from continuing to implement, and apply credits
3    under, an ARP in the event that the PIPP or LIHEAP is
4    suspended due to lack of funding such that the plan
5    participant does not receive a benefit under either the
6    PIPP or LIHEAP.
7        (5.5) In addition to the ARP described in paragraph
8    (5) of this subsection (c), utilities may also implement a
9    Supplemental Arrearage Reduction Program (SARP) for
10    eligible participants who are not able to become plan
11    participants due to PIPP timing or funding constraints. If
12    a utility elects to implement a SARP, it shall be
13    administered as follows: for each month that a SARP
14    participant timely pays his or her utility bill, the
15    utility shall apply a credit to a portion of the
16    participant's pre-program arrears, if any, equal to
17    one-twelfth of such arrearage, provided that the utility
18    may limit the total amount of arrearage credits to no more
19    than $1,000 annually for each participant for gas and no
20    more than $1,000 annually for each participant for
21    electricity. SARP participants shall not be subject to the
22    imposition of any additional late payment fees on
23    pre-program arrears covered by the SARP. In all other
24    respects, the utility shall bill and collect the monthly
25    bill of a SARP participant under the same rules,
26    regulations, programs, and policies as applicable to

 

 

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1    residential customers generally. Participation in the SARP
2    shall be limited to the maximum amount of funds available
3    as set forth in subsection (f) of Section 13 of this Act.
4    In the event any donated funds under Section 13 of this Act
5    are specifically designated for the purpose of funding the
6    SARP, the Department shall remit such amounts to the
7    utilities upon verification that such funds are needed to
8    fund the SARP.
9        (6) The Department may terminate a plan participant's
10    eligibility for the PIP Plan upon notification by the
11    utility that the participant's monthly utility payment is
12    more than 75 days past due. One-twelfth of a customer's
13    arrearage shall be deducted from the total arrearage owed
14    for each on-time payment made by the customer.
15        (7) The Department, in consultation with the Policy
16    Advisory Council, may adjust the number of PIP Plan
17    participants annually, if necessary, to match the
18    availability of funds. Any plan participant who qualifies
19    for a PIPP credit under a utility's PIPP shall be entitled
20    to participate in and receive a credit under such
21    utility's ARP for so long as such utility has ARP funds
22    available, regardless of whether the customer's
23    participation under another utility's PIPP or ARP has been
24    curtailed or limited because of a lack of funds.
25        (8) The Department shall fully implement the PIPP at
26    the earliest possible date it is able to effectively

 

 

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1    administer the PIPP. Within 90 days of the effective date
2    of this amendatory Act of the 96th General Assembly, the
3    Department shall, in consultation with utility companies,
4    participating alternative suppliers, LAAs and the Illinois
5    Commerce Commission (Commission), issue a detailed
6    implementation plan which shall include detailed testing
7    protocols and analysis of the capacity for implementation
8    by the LAAs and utilities. Such consultation process also
9    shall address how to implement the PIPP in the most
10    cost-effective and timely manner, and shall identify
11    opportunities for relying on the expertise of utilities,
12    LAAs and the Commission. Following the implementation of
13    the testing protocols, the Department shall issue a
14    written report on the feasibility of full or gradual
15    implementation. The PIPP shall be fully implemented by
16    September 1, 2011, but may be phased in prior to that date.
17        (9) As part of the screening process established under
18    item (1) of this subsection (c), the Department and LAAs
19    shall assess whether any energy efficiency or demand
20    response measures are available to the plan participant at
21    no cost, and if so, the participant shall enroll in any
22    such program for which he or she is eligible. The LAAs
23    shall assist the participant in the applicable enrollment
24    or application process.
25        (10) Each alternative retail electric and gas supplier
26    serving residential customers shall elect whether to

 

 

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1    participate in the PIPP or ARP described in this Section.
2    Any such supplier electing to participate in the PIPP
3    shall provide to the Department such information as the
4    Department may require, including, without limitation,
5    information sufficient for the Department to determine the
6    proportionate allocation of credits between the
7    alternative supplier and the utility. If a utility in
8    whose service territory an alternative supplier serves
9    customers contributes money to the ARP fund which is not
10    recovered from ratepayers, then an alternative supplier
11    which participates in ARP in that utility's service
12    territory shall also contribute to the ARP fund in an
13    amount that is commensurate with the number of alternative
14    supplier customers who elect to participate in the
15    program.
16        (11) The PIPP shall be designed and implemented each
17    year to maximize participation and spend at least 80% of
18    the funding available for the year.
19    (d) The Department, in consultation with the Policy
20Advisory Council, shall develop and implement a program to
21educate customers about the PIP Plan and about their rights
22and responsibilities under the percentage of income component.
23The Department, in consultation with the Policy Advisory
24Council, shall establish a process that LAAs shall use to
25contact customers in jeopardy of losing eligibility due to
26late payments. The Department shall ensure that LAAs are

 

 

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1adequately funded to perform all necessary educational tasks.
2    (e) The PIPP shall be administered in a manner which
3ensures that credits to plan participants will not be counted
4as income or as a resource in other means-tested assistance
5programs for low-income households or otherwise result in the
6loss of federal or State assistance dollars for low-income
7households.
8    (f) In order to ensure that implementation costs are
9minimized, the Department and utilities shall work together to
10identify cost-effective ways to transfer information
11electronically and to employ available protocols that will
12minimize their respective administrative costs as follows:
13        (1) The Commission may require utilities to provide
14    such information on customer usage and billing and payment
15    information as required by the Department to implement the
16    PIP Plan and to provide written notices and communications
17    to plan participants.
18        (2) Each utility and participating alternative
19    supplier shall file annual reports with the Department and
20    the Commission that cumulatively summarize and update
21    program information as required by the Commission's rules.
22    The reports shall track implementation costs and contain
23    such information as is necessary to evaluate the success
24    of the PIPP.
25        (2.5) The Department shall annually prepare and submit
26    a report to the General Assembly, the Commission, and the

 

 

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1    Policy Advisory Council that identifies the following
2    amounts for the most recently completed year: total monies
3    collected under subsection (b) of Section 13 of this Act
4    for all PIPPs implemented in the State; monies allocated
5    to each utility for implementation of its PIPP; and monies
6    allocated to each utility for other purposes, including a
7    description of each of those purposes. The Commission
8    shall publish the report on its website.
9        (3) The Department and the Commission shall have the
10    authority to promulgate rules and regulations necessary to
11    execute and administer the provisions of this Section.
12    (g) Each utility shall be entitled to recover reasonable
13administrative and operational costs incurred to comply with
14this Section from the Supplemental Low Income Energy
15Assistance Fund. The utility may net such costs against monies
16it would otherwise remit to the Funds, and each utility shall
17include in the annual report required under subsection (f) of
18this Section an accounting for the funds collected. An energy
19provider that receives payments from the Department from the
20Supplemental Low-Income Energy Assistance Fund, that provides
21confirmation to an administering agency that an applicant is a
22customer, shall ensure that the applicant customer is not
23disconnected from energy service while an application is
24pending.
25(Source: P.A. 101-636, eff. 6-10-20; 102-176, eff. 6-1-22.)