SB3453 EnrolledLRB097 18954 CEL 64192 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 5. The State Finance Act is amended by adding
5Sections 5.811 and 6z-93 as follows:
 
6    (30 ILCS 105/5.811 new)
7    Sec. 5.811. The Energy Efficiency Portfolio Standards
8Fund.
 
9    (30 ILCS 105/6z-93 new)
10    Sec. 6z-93. Energy Efficiency Portfolio Standards Fund.
11    (a) The Energy Efficiency Portfolio Standards Fund is
12created as a special fund in the State treasury. All moneys
13received by the Department of Commerce and Economic Opportunity
14under Sections 8-103 and 8-104 of the Public Utilities Act
15shall be deposited into the Energy Efficiency Portfolio
16Standards Fund. Subject to appropriation, moneys in the Energy
17Efficiency Portfolio Standards Fund may be used only for the
18purposes authorized by Sections 8-103 and 8-104 of the Public
19Utilities Act.
20    (b) As soon as possible after June 1, 2012, and in no event
21later than July 31, 2012, the Director of Commerce and Economic
22Opportunity shall certify the balance in the DCEO Energy

 

 

SB3453 Enrolled- 2 -LRB097 18954 CEL 64192 b

1Projects Fund, less any federal moneys and less any amounts
2obligated, and the State Comptroller shall transfer such amount
3from the DCEO Energy Projects Fund to the Energy Efficiency
4Portfolio Standards Fund.
 
5    Section 10. The Public Utilities Act is amended by changing
6Sections 8-103 and 8-104 as follows:
 
7    (220 ILCS 5/8-103)
8    Sec. 8-103. Energy efficiency and demand-response
9measures.
10    (a) It is the policy of the State that electric utilities
11are required to use cost-effective energy efficiency and
12demand-response measures to reduce delivery load. Requiring
13investment in cost-effective energy efficiency and
14demand-response measures will reduce direct and indirect costs
15to consumers by decreasing environmental impacts and by
16avoiding or delaying the need for new generation, transmission,
17and distribution infrastructure. It serves the public interest
18to allow electric utilities to recover costs for reasonably and
19prudently incurred expenses for energy efficiency and
20demand-response measures. As used in this Section,
21"cost-effective" means that the measures satisfy the total
22resource cost test. The low-income measures described in
23subsection (f)(4) of this Section shall not be required to meet
24the total resource cost test. For purposes of this Section, the

 

 

SB3453 Enrolled- 3 -LRB097 18954 CEL 64192 b

1terms "energy-efficiency", "demand-response", "electric
2utility", and "total resource cost test" shall have the
3meanings set forth in the Illinois Power Agency Act. For
4purposes of this Section, the amount per kilowatthour means the
5total amount paid for electric service expressed on a per
6kilowatthour basis. For purposes of this Section, the total
7amount paid for electric service includes without limitation
8estimated amounts paid for supply, transmission, distribution,
9surcharges, and add-on-taxes.
10    (b) Electric utilities shall implement cost-effective
11energy efficiency measures to meet the following incremental
12annual energy savings goals:
13        (1) 0.2% of energy delivered in the year commencing
14    June 1, 2008;
15        (2) 0.4% of energy delivered in the year commencing
16    June 1, 2009;
17        (3) 0.6% of energy delivered in the year commencing
18    June 1, 2010;
19        (4) 0.8% of energy delivered in the year commencing
20    June 1, 2011;
21        (5) 1% of energy delivered in the year commencing June
22    1, 2012;
23        (6) 1.4% of energy delivered in the year commencing
24    June 1, 2013;
25        (7) 1.8% of energy delivered in the year commencing
26    June 1, 2014; and

 

 

SB3453 Enrolled- 4 -LRB097 18954 CEL 64192 b

1        (8) 2% of energy delivered in the year commencing June
2    1, 2015 and each year thereafter.
3    (c) Electric utilities shall implement cost-effective
4demand-response measures to reduce peak demand by 0.1% over the
5prior year for eligible retail customers, as defined in Section
616-111.5 of this Act, and for customers that elect hourly
7service from the utility pursuant to Section 16-107 of this
8Act, provided those customers have not been declared
9competitive. This requirement commences June 1, 2008 and
10continues for 10 years.
11    (d) Notwithstanding the requirements of subsections (b)
12and (c) of this Section, an electric utility shall reduce the
13amount of energy efficiency and demand-response measures
14implemented in any single year by an amount necessary to limit
15the estimated average increase in the amounts paid by retail
16customers in connection with electric service due to the cost
17of those measures to:
18        (1) in 2008, no more than 0.5% of the amount paid per
19    kilowatthour by those customers during the year ending May
20    31, 2007;
21        (2) in 2009, the greater of an additional 0.5% of the
22    amount paid per kilowatthour by those customers during the
23    year ending May 31, 2008 or 1% of the amount paid per
24    kilowatthour by those customers during the year ending May
25    31, 2007;
26        (3) in 2010, the greater of an additional 0.5% of the

 

 

SB3453 Enrolled- 5 -LRB097 18954 CEL 64192 b

1    amount paid per kilowatthour by those customers during the
2    year ending May 31, 2009 or 1.5% of the amount paid per
3    kilowatthour by those customers during the year ending May
4    31, 2007;
5        (4) in 2011, the greater of an additional 0.5% of the
6    amount paid per kilowatthour by those customers during the
7    year ending May 31, 2010 or 2% of the amount paid per
8    kilowatthour by those customers during the year ending May
9    31, 2007; and
10        (5) thereafter, the amount of energy efficiency and
11    demand-response measures implemented for any single year
12    shall be reduced by an amount necessary to limit the
13    estimated average net increase due to the cost of these
14    measures included in the amounts paid by eligible retail
15    customers in connection with electric service to no more
16    than the greater of 2.015% of the amount paid per
17    kilowatthour by those customers during the year ending May
18    31, 2007 or the incremental amount per kilowatthour paid
19    for these measures in 2011.
20    No later than June 30, 2011, the Commission shall review
21the limitation on the amount of energy efficiency and
22demand-response measures implemented pursuant to this Section
23and report to the General Assembly its findings as to whether
24that limitation unduly constrains the procurement of energy
25efficiency and demand-response measures.
26    (e) Electric utilities shall be responsible for overseeing

 

 

SB3453 Enrolled- 6 -LRB097 18954 CEL 64192 b

1the design, development, and filing of energy efficiency and
2demand-response plans with the Commission. Electric utilities
3shall implement 100% of the demand-response measures in the
4plans. Electric utilities shall implement 75% of the energy
5efficiency measures approved by the Commission, and may, as
6part of that implementation, outsource various aspects of
7program development and implementation. The remaining 25% of
8those energy efficiency measures approved by the Commission
9shall be implemented by the Department of Commerce and Economic
10Opportunity, and must be designed in conjunction with the
11utility and the filing process. The Department may outsource
12development and implementation of energy efficiency measures.
13A minimum of 10% of the entire portfolio of cost-effective
14energy efficiency measures shall be procured from units of
15local government, municipal corporations, school districts,
16and community college districts. The Department shall
17coordinate the implementation of these measures.
18    The apportionment of the dollars to cover the costs to
19implement the Department's share of the portfolio of energy
20efficiency measures shall be made to the Department once the
21Department has executed rebate agreements, grants, or
22contracts for energy efficiency measures and provided
23supporting documentation for those rebate agreements, grants,
24and the contracts to the utility. The Department is authorized
25to adopt any rules necessary and prescribe procedures in order
26to ensure compliance by applicants in carrying out the purposes

 

 

SB3453 Enrolled- 7 -LRB097 18954 CEL 64192 b

1of rebate agreements for energy efficiency measures
2implemented by the Department made under this Section.
3    The details of the measures implemented by the Department
4shall be submitted by the Department to the Commission in
5connection with the utility's filing regarding the energy
6efficiency and demand-response measures that the utility
7implements.
8    A utility providing approved energy efficiency and
9demand-response measures in the State shall be permitted to
10recover costs of those measures through an automatic adjustment
11clause tariff filed with and approved by the Commission. The
12tariff shall be established outside the context of a general
13rate case. Each year the Commission shall initiate a review to
14reconcile any amounts collected with the actual costs and to
15determine the required adjustment to the annual tariff factor
16to match annual expenditures.
17    Each utility shall include, in its recovery of costs, the
18costs estimated for both the utility's and the Department's
19implementation of energy efficiency and demand-response
20measures. Costs collected by the utility for measures
21implemented by the Department shall be submitted to the
22Department pursuant to Section 605-323 of the Civil
23Administrative Code of Illinois, shall be deposited into the
24Energy Efficiency Portfolio Standards Fund, and shall be used
25by the Department solely for the purpose of implementing these
26measures. A utility shall not be required to advance any moneys

 

 

SB3453 Enrolled- 8 -LRB097 18954 CEL 64192 b

1to the Department but only to forward such funds as it has
2collected. The Department shall report to the Commission on an
3annual basis regarding the costs actually incurred by the
4Department in the implementation of the measures. Any changes
5to the costs of energy efficiency measures as a result of plan
6modifications shall be appropriately reflected in amounts
7recovered by the utility and turned over to the Department.
8    The portfolio of measures, administered by both the
9utilities and the Department, shall, in combination, be
10designed to achieve the annual savings targets described in
11subsections (b) and (c) of this Section, as modified by
12subsection (d) of this Section.
13    The utility and the Department shall agree upon a
14reasonable portfolio of measures and determine the measurable
15corresponding percentage of the savings goals associated with
16measures implemented by the utility or Department.
17    No utility shall be assessed a penalty under subsection (f)
18of this Section for failure to make a timely filing if that
19failure is the result of a lack of agreement with the
20Department with respect to the allocation of responsibilities
21or related costs or target assignments. In that case, the
22Department and the utility shall file their respective plans
23with the Commission and the Commission shall determine an
24appropriate division of measures and programs that meets the
25requirements of this Section.
26    If the Department is unable to meet incremental annual

 

 

SB3453 Enrolled- 9 -LRB097 18954 CEL 64192 b

1performance goals for the portion of the portfolio implemented
2by the Department, then the utility and the Department shall
3jointly submit a modified filing to the Commission explaining
4the performance shortfall and recommending an appropriate
5course going forward, including any program modifications that
6may be appropriate in light of the evaluations conducted under
7item (7) of subsection (f) of this Section. In this case, the
8utility obligation to collect the Department's costs and turn
9over those funds to the Department under this subsection (e)
10shall continue only if the Commission approves the
11modifications to the plan proposed by the Department.
12    (f) No later than November 15, 2007, each electric utility
13shall file an energy efficiency and demand-response plan with
14the Commission to meet the energy efficiency and
15demand-response standards for 2008 through 2010. No later than
16October 1, 2010, each electric utility shall file an energy
17efficiency and demand-response plan with the Commission to meet
18the energy efficiency and demand-response standards for 2011
19through 2013. Every 3 years thereafter, each electric utility
20shall file, no later than September 1, an energy efficiency and
21demand-response plan with the Commission. If a utility does not
22file such a plan by September 1 of an applicable year, it shall
23face a penalty of $100,000 per day until the plan is filed.
24Each utility's plan shall set forth the utility's proposals to
25meet the utility's portion of the energy efficiency standards
26identified in subsection (b) and the demand-response standards

 

 

SB3453 Enrolled- 10 -LRB097 18954 CEL 64192 b

1identified in subsection (c) of this Section as modified by
2subsections (d) and (e), taking into account the unique
3circumstances of the utility's service territory. The
4Commission shall seek public comment on the utility's plan and
5shall issue an order approving or disapproving each plan within
65 months after its submission. If the Commission disapproves a
7plan, the Commission shall, within 30 days, describe in detail
8the reasons for the disapproval and describe a path by which
9the utility may file a revised draft of the plan to address the
10Commission's concerns satisfactorily. If the utility does not
11refile with the Commission within 60 days, the utility shall be
12subject to penalties at a rate of $100,000 per day until the
13plan is filed. This process shall continue, and penalties shall
14accrue, until the utility has successfully filed a portfolio of
15energy efficiency and demand-response measures. Penalties
16shall be deposited into the Energy Efficiency Trust Fund. In
17submitting proposed energy efficiency and demand-response
18plans and funding levels to meet the savings goals adopted by
19this Act the utility shall:
20        (1) Demonstrate that its proposed energy efficiency
21    and demand-response measures will achieve the requirements
22    that are identified in subsections (b) and (c) of this
23    Section, as modified by subsections (d) and (e).
24        (2) Present specific proposals to implement new
25    building and appliance standards that have been placed into
26    effect.

 

 

SB3453 Enrolled- 11 -LRB097 18954 CEL 64192 b

1        (3) Present estimates of the total amount paid for
2    electric service expressed on a per kilowatthour basis
3    associated with the proposed portfolio of measures
4    designed to meet the requirements that are identified in
5    subsections (b) and (c) of this Section, as modified by
6    subsections (d) and (e).
7        (4) Coordinate with the Department to present a
8    portfolio of energy efficiency measures proportionate to
9    the share of total annual utility revenues in Illinois from
10    households at or below 150% of the poverty level. The
11    energy efficiency programs shall be targeted to households
12    with incomes at or below 80% of area median income.
13        (5) Demonstrate that its overall portfolio of energy
14    efficiency and demand-response measures, not including
15    programs covered by item (4) of this subsection (f), are
16    cost-effective using the total resource cost test and
17    represent a diverse cross-section of opportunities for
18    customers of all rate classes to participate in the
19    programs.
20        (6) Include a proposed cost-recovery tariff mechanism
21    to fund the proposed energy efficiency and demand-response
22    measures and to ensure the recovery of the prudently and
23    reasonably incurred costs of Commission-approved programs.
24        (7) Provide for an annual independent evaluation of the
25    performance of the cost-effectiveness of the utility's
26    portfolio of measures and the Department's portfolio of

 

 

SB3453 Enrolled- 12 -LRB097 18954 CEL 64192 b

1    measures, as well as a full review of the 3-year results of
2    the broader net program impacts and, to the extent
3    practical, for adjustment of the measures on a
4    going-forward basis as a result of the evaluations. The
5    resources dedicated to evaluation shall not exceed 3% of
6    portfolio resources in any given year.
7    (g) No more than 3% of energy efficiency and
8demand-response program revenue may be allocated for
9demonstration of breakthrough equipment and devices.
10    (h) This Section does not apply to an electric utility that
11on December 31, 2005 provided electric service to fewer than
12100,000 customers in Illinois.
13    (i) If, after 2 years, an electric utility fails to meet
14the efficiency standard specified in subsection (b) of this
15Section, as modified by subsections (d) and (e), it shall make
16a contribution to the Low-Income Home Energy Assistance
17Program. The combined total liability for failure to meet the
18goal shall be $1,000,000, which shall be assessed as follows: a
19large electric utility shall pay $665,000, and a medium
20electric utility shall pay $335,000. If, after 3 years, an
21electric utility fails to meet the efficiency standard
22specified in subsection (b) of this Section, as modified by
23subsections (d) and (e), it shall make a contribution to the
24Low-Income Home Energy Assistance Program. The combined total
25liability for failure to meet the goal shall be $1,000,000,
26which shall be assessed as follows: a large electric utility

 

 

SB3453 Enrolled- 13 -LRB097 18954 CEL 64192 b

1shall pay $665,000, and a medium electric utility shall pay
2$335,000. In addition, the responsibility for implementing the
3energy efficiency measures of the utility making the payment
4shall be transferred to the Illinois Power Agency if, after 3
5years, or in any subsequent 3-year period, the utility fails to
6meet the efficiency standard specified in subsection (b) of
7this Section, as modified by subsections (d) and (e). The
8Agency shall implement a competitive procurement program to
9procure resources necessary to meet the standards specified in
10this Section as modified by subsections (d) and (e), with costs
11for those resources to be recovered in the same manner as
12products purchased through the procurement plan as provided in
13Section 16-111.5. The Director shall implement this
14requirement in connection with the procurement plan as provided
15in Section 16-111.5.
16    For purposes of this Section, (i) a "large electric
17utility" is an electric utility that, on December 31, 2005,
18served more than 2,000,000 electric customers in Illinois; (ii)
19a "medium electric utility" is an electric utility that, on
20December 31, 2005, served 2,000,000 or fewer but more than
21100,000 electric customers in Illinois; and (iii) Illinois
22electric utilities that are affiliated by virtue of a common
23parent company are considered a single electric utility.
24    (j) If, after 3 years, or any subsequent 3-year period, the
25Department fails to implement the Department's share of energy
26efficiency measures required by the standards in subsection

 

 

SB3453 Enrolled- 14 -LRB097 18954 CEL 64192 b

1(b), then the Illinois Power Agency may assume responsibility
2for and control of the Department's share of the required
3energy efficiency measures. The Agency shall implement a
4competitive procurement program to procure resources necessary
5to meet the standards specified in this Section, with the costs
6of these resources to be recovered in the same manner as
7provided for the Department in this Section.
8    (k) No electric utility shall be deemed to have failed to
9meet the energy efficiency standards to the extent any such
10failure is due to a failure of the Department or the Agency.
11(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;
1296-1000, eff. 7-2-10; 97-616, eff. 10-26-11.)
 
13    (220 ILCS 5/8-104)
14    Sec. 8-104. Natural gas energy efficiency programs.
15    (a) It is the policy of the State that natural gas
16utilities and the Department of Commerce and Economic
17Opportunity are required to use cost-effective energy
18efficiency to reduce direct and indirect costs to consumers. It
19serves the public interest to allow natural gas utilities to
20recover costs for reasonably and prudently incurred expenses
21for cost-effective energy efficiency measures.
22    (b) For purposes of this Section, "energy efficiency" means
23measures that reduce the amount of energy required to achieve a
24given end use and "cost-effective" means that the measures
25satisfy the total resource cost test which, for purposes of

 

 

SB3453 Enrolled- 15 -LRB097 18954 CEL 64192 b

1this Section, means a standard that is met if, for an
2investment in energy efficiency, the benefit-cost ratio is
3greater than one. The benefit-cost ratio is the ratio of the
4net present value of the total benefits of the measures to the
5net present value of the total costs as calculated over the
6lifetime of the measures. The total resource cost test compares
7the sum of avoided natural gas utility costs, representing the
8benefits that accrue to the system and the participant in the
9delivery of those efficiency measures, as well as other
10quantifiable societal benefits, including avoided electric
11utility costs, to the sum of all incremental costs of end use
12measures (including both utility and participant
13contributions), plus costs to administer, deliver, and
14evaluate each demand-side measure, to quantify the net savings
15obtained by substituting demand-side measures for supply
16resources. In calculating avoided costs, reasonable estimates
17shall be included for financial costs likely to be imposed by
18future regulation of emissions of greenhouse gases. The
19low-income programs described in item (4) of subsection (f) of
20this Section shall not be required to meet the total resource
21cost test.
22    (c) Natural gas utilities shall implement cost-effective
23energy efficiency measures to meet at least the following
24natural gas savings requirements, which shall be based upon the
25total amount of gas delivered to retail customers, other than
26the customers described in subsection (m) of this Section,

 

 

SB3453 Enrolled- 16 -LRB097 18954 CEL 64192 b

1during calendar year 2009 multiplied by the applicable
2percentage. Natural gas utilities may comply with this Section
3by meeting the annual incremental savings goal in the
4applicable year or by showing that total savings associated
5with measures implemented after May 31, 2011 were equal to the
6sum of each annual incremental savings requirement from May 31,
72011 through the end of the applicable year:
8        (1) 0.2% by May 31, 2012;
9        (2) an additional 0.4% by May 31, 2013, increasing
10    total savings to .6%;
11        (3) an additional 0.6% by May 31, 2014, increasing
12    total savings to 1.2%;
13        (4) an additional 0.8% by May 31, 2015, increasing
14    total savings to 2.0%;
15        (5) an additional 1% by May 31, 2016, increasing total
16    savings to 3.0%;
17        (6) an additional 1.2% by May 31, 2017, increasing
18    total savings to 4.2%;
19        (7) an additional 1.4% by May 31, 2018, increasing
20    total savings to 5.6%;
21        (8) an additional 1.5% by May 31, 2019, increasing
22    total savings to 7.1%; and
23        (9) an additional 1.5% in each 12-month period
24    thereafter.
25    (d) Notwithstanding the requirements of subsection (c) of
26this Section, a natural gas utility shall limit the amount of

 

 

SB3453 Enrolled- 17 -LRB097 18954 CEL 64192 b

1energy efficiency implemented in any 3-year reporting period
2established by subsection (f) of Section 8-104 of this Act, by
3an amount necessary to limit the estimated average increase in
4the amounts paid by retail customers in connection with natural
5gas service to no more than 2% in the applicable 3-year
6reporting period. The energy savings requirements in
7subsection (c) of this Section may be reduced by the Commission
8for the subject plan, if the utility demonstrates by
9substantial evidence that it is highly unlikely that the
10requirements could be achieved without exceeding the
11applicable spending limits in any 3-year reporting period. No
12later than September 1, 2013, the Commission shall review the
13limitation on the amount of energy efficiency measures
14implemented pursuant to this Section and report to the General
15Assembly, in the report required by subsection (k) of this
16Section, its findings as to whether that limitation unduly
17constrains the procurement of energy efficiency measures.
18    (e) Natural gas utilities shall be responsible for
19overseeing the design, development, and filing of their
20efficiency plans with the Commission. The utility shall utilize
2175% of the available funding associated with energy efficiency
22programs approved by the Commission, and may outsource various
23aspects of program development and implementation. The
24remaining 25% of available funding shall be used by the
25Department of Commerce and Economic Opportunity to implement
26energy efficiency measures that achieve no less than 20% of the

 

 

SB3453 Enrolled- 18 -LRB097 18954 CEL 64192 b

1requirements of subsection (c) of this Section. Such measures
2shall be designed in conjunction with the utility and approved
3by the Commission. The Department may outsource development and
4implementation of energy efficiency measures. A minimum of 10%
5of the entire portfolio of cost-effective energy efficiency
6measures shall be procured from local government, municipal
7corporations, school districts, and community college
8districts. Five percent of the entire portfolio of
9cost-effective energy efficiency measures may be granted to
10local government and municipal corporations for market
11transformation initiatives. The Department shall coordinate
12the implementation of these measures and shall integrate
13delivery of natural gas efficiency programs with electric
14efficiency programs delivered pursuant to Section 8-103 of this
15Act, unless the Department can show that integration is not
16feasible.
17    The apportionment of the dollars to cover the costs to
18implement the Department's share of the portfolio of energy
19efficiency measures shall be made to the Department once the
20Department has executed rebate agreements, grants, or
21contracts for energy efficiency measures and provided
22supporting documentation for those rebate agreements, grants,
23and the contracts to the utility. The Department is authorized
24to adopt any rules necessary and prescribe procedures in order
25to ensure compliance by applicants in carrying out the purposes
26of rebate agreements for energy efficiency measures

 

 

SB3453 Enrolled- 19 -LRB097 18954 CEL 64192 b

1implemented by the Department made under this Section.
2    The details of the measures implemented by the Department
3shall be submitted by the Department to the Commission in
4connection with the utility's filing regarding the energy
5efficiency measures that the utility implements.
6    A utility providing approved energy efficiency measures in
7this State shall be permitted to recover costs of those
8measures through an automatic adjustment clause tariff filed
9with and approved by the Commission. The tariff shall be
10established outside the context of a general rate case and
11shall be applicable to the utility's customers other than the
12customers described in subsection (m) of this Section. Each
13year the Commission shall initiate a review to reconcile any
14amounts collected with the actual costs and to determine the
15required adjustment to the annual tariff factor to match annual
16expenditures.
17    Each utility shall include, in its recovery of costs, the
18costs estimated for both the utility's and the Department's
19implementation of energy efficiency measures. Costs collected
20by the utility for measures implemented by the Department shall
21be submitted to the Department pursuant to Section 605-323 of
22the Civil Administrative Code of Illinois, shall be deposited
23into the Energy Efficiency Portfolio Standards Fund, and shall
24be used by the Department solely for the purpose of
25implementing these measures. A utility shall not be required to
26advance any moneys to the Department but only to forward such

 

 

SB3453 Enrolled- 20 -LRB097 18954 CEL 64192 b

1funds as it has collected. The Department shall report to the
2Commission on an annual basis regarding the costs actually
3incurred by the Department in the implementation of the
4measures. Any changes to the costs of energy efficiency
5measures as a result of plan modifications shall be
6appropriately reflected in amounts recovered by the utility and
7turned over to the Department.
8    The portfolio of measures, administered by both the
9utilities and the Department, shall, in combination, be
10designed to achieve the annual energy savings requirements set
11forth in subsection (c) of this Section, as modified by
12subsection (d) of this Section.
13    The utility and the Department shall agree upon a
14reasonable portfolio of measures and determine the measurable
15corresponding percentage of the savings goals associated with
16measures implemented by the Department.
17    No utility shall be assessed a penalty under subsection (f)
18of this Section for failure to make a timely filing if that
19failure is the result of a lack of agreement with the
20Department with respect to the allocation of responsibilities
21or related costs or target assignments. In that case, the
22Department and the utility shall file their respective plans
23with the Commission and the Commission shall determine an
24appropriate division of measures and programs that meets the
25requirements of this Section.
26    If the Department is unable to meet performance

 

 

SB3453 Enrolled- 21 -LRB097 18954 CEL 64192 b

1requirements for the portion of the portfolio implemented by
2the Department, then the utility and the Department shall
3jointly submit a modified filing to the Commission explaining
4the performance shortfall and recommending an appropriate
5course going forward, including any program modifications that
6may be appropriate in light of the evaluations conducted under
7item (8) of subsection (f) of this Section. In this case, the
8utility obligation to collect the Department's costs and turn
9over those funds to the Department under this subsection (e)
10shall continue only if the Commission approves the
11modifications to the plan proposed by the Department.
12    (f) No later than October 1, 2010, each gas utility shall
13file an energy efficiency plan with the Commission to meet the
14energy efficiency standards through May 31, 2014. Every 3 years
15thereafter, each utility shall file, no later than October 1,
16an energy efficiency plan with the Commission. If a utility
17does not file such a plan by October 1 of the applicable year,
18then it shall face a penalty of $100,000 per day until the plan
19is filed. Each utility's plan shall set forth the utility's
20proposals to meet the utility's portion of the energy
21efficiency standards identified in subsection (c) of this
22Section, as modified by subsection (d) of this Section, taking
23into account the unique circumstances of the utility's service
24territory. The Commission shall seek public comment on the
25utility's plan and shall issue an order approving or
26disapproving each plan. If the Commission disapproves a plan,

 

 

SB3453 Enrolled- 22 -LRB097 18954 CEL 64192 b

1the Commission shall, within 30 days, describe in detail the
2reasons for the disapproval and describe a path by which the
3utility may file a revised draft of the plan to address the
4Commission's concerns satisfactorily. If the utility does not
5refile with the Commission within 60 days after the
6disapproval, the utility shall be subject to penalties at a
7rate of $100,000 per day until the plan is filed. This process
8shall continue, and penalties shall accrue, until the utility
9has successfully filed a portfolio of energy efficiency
10measures. Penalties shall be deposited into the Energy
11Efficiency Trust Fund and the cost of any such penalties may
12not be recovered from ratepayers. In submitting proposed energy
13efficiency plans and funding levels to meet the savings goals
14adopted by this Act the utility shall:
15        (1) Demonstrate that its proposed energy efficiency
16    measures will achieve the requirements that are identified
17    in subsection (c) of this Section, as modified by
18    subsection (d) of this Section.
19        (2) Present specific proposals to implement new
20    building and appliance standards that have been placed into
21    effect.
22        (3) Present estimates of the total amount paid for gas
23    service expressed on a per therm basis associated with the
24    proposed portfolio of measures designed to meet the
25    requirements that are identified in subsection (c) of this
26    Section, as modified by subsection (d) of this Section.

 

 

SB3453 Enrolled- 23 -LRB097 18954 CEL 64192 b

1        (4) Coordinate with the Department to present a
2    portfolio of energy efficiency measures proportionate to
3    the share of total annual utility revenues in Illinois from
4    households at or below 150% of the poverty level. Such
5    programs shall be targeted to households with incomes at or
6    below 80% of area median income.
7        (5) Demonstrate that its overall portfolio of energy
8    efficiency measures, not including programs covered by
9    item (4) of this subsection (f), are cost-effective using
10    the total resource cost test and represent a diverse cross
11    section of opportunities for customers of all rate classes
12    to participate in the programs.
13        (6) Demonstrate that a gas utility affiliated with an
14    electric utility that is required to comply with Section
15    8-103 of this Act has integrated gas and electric
16    efficiency measures into a single program that reduces
17    program or participant costs and appropriately allocates
18    costs to gas and electric ratepayers. The Department shall
19    integrate all gas and electric programs it delivers in any
20    such utilities' service territories, unless the Department
21    can show that integration is not feasible or appropriate.
22        (7) Include a proposed cost recovery tariff mechanism
23    to fund the proposed energy efficiency measures and to
24    ensure the recovery of the prudently and reasonably
25    incurred costs of Commission-approved programs.
26        (8) Provide for quarterly status reports tracking

 

 

SB3453 Enrolled- 24 -LRB097 18954 CEL 64192 b

1    implementation of and expenditures for the utility's
2    portfolio of measures and the Department's portfolio of
3    measures, an annual independent review, and a full
4    independent evaluation of the 3-year results of the
5    performance and the cost-effectiveness of the utility's
6    and Department's portfolios of measures and broader net
7    program impacts and, to the extent practical, for
8    adjustment of the measures on a going forward basis as a
9    result of the evaluations. The resources dedicated to
10    evaluation shall not exceed 3% of portfolio resources in
11    any given 3-year period.
12    (g) No more than 3% of expenditures on energy efficiency
13measures may be allocated for demonstration of breakthrough
14equipment and devices.
15    (h) Illinois natural gas utilities that are affiliated by
16virtue of a common parent company may, at the utilities'
17request, be considered a single natural gas utility for
18purposes of complying with this Section.
19    (i) If, after 3 years, a gas utility fails to meet the
20efficiency standard specified in subsection (c) of this Section
21as modified by subsection (d), then it shall make a
22contribution to the Low-Income Home Energy Assistance Program.
23The total liability for failure to meet the goal shall be
24assessed as follows:
25        (1) a large gas utility shall pay $600,000;
26        (2) a medium gas utility shall pay $400,000; and

 

 

SB3453 Enrolled- 25 -LRB097 18954 CEL 64192 b

1        (3) a small gas utility shall pay $200,000.
2    For purposes of this Section, (i) a "large gas utility" is
3a gas utility that on December 31, 2008, served more than
41,500,000 gas customers in Illinois; (ii) a "medium gas
5utility" is a gas utility that on December 31, 2008, served
6fewer than 1,500,000, but more than 500,000 gas customers in
7Illinois; and (iii) a "small gas utility" is a gas utility that
8on December 31, 2008, served fewer than 500,000 and more than
9100,000 gas customers in Illinois. The costs of this
10contribution may not be recovered from ratepayers.
11    If a gas utility fails to meet the efficiency standard
12specified in subsection (c) of this Section, as modified by
13subsection (d) of this Section, in any 2 consecutive 3-year
14planning periods, then the responsibility for implementing the
15utility's energy efficiency measures shall be transferred to an
16independent program administrator selected by the Commission.
17Reasonable and prudent costs incurred by the independent
18program administrator to meet the efficiency standard
19specified in subsection (c) of this Section, as modified by
20subsection (d) of this Section, may be recovered from the
21customers of the affected gas utilities, other than customers
22described in subsection (m) of this Section. The utility shall
23provide the independent program administrator with all
24information and assistance necessary to perform the program
25administrator's duties including but not limited to customer,
26account, and energy usage data, and shall allow the program

 

 

SB3453 Enrolled- 26 -LRB097 18954 CEL 64192 b

1administrator to include inserts in customer bills. The utility
2may recover reasonable costs associated with any such
3assistance.
4    (j) No utility shall be deemed to have failed to meet the
5energy efficiency standards to the extent any such failure is
6due to a failure of the Department.
7    (k) Not later than January 1, 2012, the Commission shall
8develop and solicit public comment on a plan to foster
9statewide coordination and consistency between statutorily
10mandated natural gas and electric energy efficiency programs to
11reduce program or participant costs or to improve program
12performance. Not later than September 1, 2013, the Commission
13shall issue a report to the General Assembly containing its
14findings and recommendations.
15    (l) This Section does not apply to a gas utility that on
16January 1, 2009, provided gas service to fewer than 100,000
17customers in Illinois.
18    (m) Subsections (a) through (k) of this Section do not
19apply to customers of a natural gas utility that have a North
20American Industry Classification System code number that is
2122111 or any such code number beginning with the digits 31, 32,
22or 33 and (i) annual usage in the aggregate of 4 million therms
23or more within the service territory of the affected gas
24utility or with aggregate usage of 8 million therms or more in
25this State and complying with the provisions of item (l) of
26this subsection (m); or (ii) using natural gas as feedstock and

 

 

SB3453 Enrolled- 27 -LRB097 18954 CEL 64192 b

1meeting the usage requirements described in item (i) of this
2subsection (m), to the extent such annual feedstock usage is
3greater than that 60% of the customer's total annual usage of
4natural gas.
5        (1) Customers described in this subsection (m) of this
6    Section shall apply, on a form approved on or before
7    October 1, 2009 by the Department, to the Department to be
8    designated as a self-directing customer ("SDC") or as an
9    exempt customer using natural gas as a feedstock from which
10    other products are made, including, but not limited to,
11    feedstock for a hydrogen plant, on or before the 1st day of
12    February, 2010. Thereafter, application may be made not
13    less than 6 months before the filing date of the gas
14    utility energy efficiency plan described in subsection (f)
15    of this Section; however, a new customer that commences
16    taking service from a natural gas utility after February 1,
17    2010 may apply to become a SDC or exempt customer up to 30
18    days after beginning service. Such application shall
19    contain the following:
20            (A) the customer's certification that, at the time
21        of its application, it qualifies to be a SDC or exempt
22        customer described in this subsection (m) of this
23        Section;
24            (B) in the case of a SDC, the customer's
25        certification that it has established or will
26        establish by the beginning of the utility's 3-year

 

 

SB3453 Enrolled- 28 -LRB097 18954 CEL 64192 b

1        planning period commencing subsequent to the
2        application, and will maintain for accounting
3        purposes, an energy efficiency reserve account and
4        that the customer will accrue funds in said account to
5        be held for the purpose of funding, in whole or in
6        part, energy efficiency measures of the customer's
7        choosing, which may include, but are not limited to,
8        projects involving combined heat and power systems
9        that use the same energy source both for the generation
10        of electrical or mechanical power and the production of
11        steam or another form of useful thermal energy or the
12        use of combustible gas produced from biomass, or both;
13            (C) in the case of a SDC, the customer's
14        certification that annual funding levels for the
15        energy efficiency reserve account will be equal to 2%
16        of the customer's cost of natural gas, composed of the
17        customer's commodity cost and the delivery service
18        charges paid to the gas utility, or $150,000, whichever
19        is less;
20            (D) in the case of a SDC, the customer's
21        certification that the required reserve account
22        balance will be capped at 3 years' worth of accruals
23        and that the customer may, at its option, make further
24        deposits to the account to the extent such deposit
25        would increase the reserve account balance above the
26        designated cap level;

 

 

SB3453 Enrolled- 29 -LRB097 18954 CEL 64192 b

1            (E) in the case of a SDC, the customer's
2        certification that by October 1 of each year, beginning
3        no sooner than October 1, 2012, the customer will
4        report to the Department information, for the 12-month
5        period ending May 31 of the same year, on all deposits
6        and reductions, if any, to the reserve account during
7        the reporting year, and to the extent deposits to the
8        reserve account in any year are in an amount less than
9        $150,000, the basis for such reduced deposits; reserve
10        account balances by month; a description of energy
11        efficiency measures undertaken by the customer and
12        paid for in whole or in part with funds from the
13        reserve account; an estimate of the energy saved, or to
14        be saved, by the measure; and that the report shall
15        include a verification by an officer or plant manager
16        of the customer or by a registered professional
17        engineer or certified energy efficiency trade
18        professional that the funds withdrawn from the reserve
19        account were used for the energy efficiency measures;
20            (F) in the case of an exempt customer, the
21        customer's certification of the level of gas usage as
22        feedstock in the customer's operation in a typical year
23        and that it will provide information establishing this
24        level, upon request of the Department;
25            (G) in the case of either an exempt customer or a
26        SDC, the customer's certification that it has provided

 

 

SB3453 Enrolled- 30 -LRB097 18954 CEL 64192 b

1        the gas utility or utilities serving the customer with
2        a copy of the application as filed with the Department;
3            (H) in the case of either an exempt customer or a
4        SDC, certification of the natural gas utility or
5        utilities serving the customer in Illinois including
6        the natural gas utility accounts that are the subject
7        of the application; and
8            (I) in the case of either an exempt customer or a
9        SDC, a verification signed by a plant manager or an
10        authorized corporate officer attesting to the
11        truthfulness and accuracy of the information contained
12        in the application.
13        (2) The Department shall review the application to
14    determine that it contains the information described in
15    provisions (A) through (I) of item (1) of this subsection
16    (m), as applicable. The review shall be completed within 30
17    days after the date the application is filed with the
18    Department. Absent a determination by the Department
19    within the 30-day period, the applicant shall be considered
20    to be a SDC or exempt customer, as applicable, for all
21    subsequent 3-year planning periods, as of the date of
22    filing the application described in this subsection (m). If
23    the Department determines that the application does not
24    contain the applicable information described in provisions
25    (A) through (I) of item (1) of this subsection (m), it
26    shall notify the customer, in writing, of its determination

 

 

SB3453 Enrolled- 31 -LRB097 18954 CEL 64192 b

1    that the application does not contain the required
2    information and identify the information that is missing,
3    and the customer shall provide the missing information
4    within 15 working days after the date of receipt of the
5    Department's notification.
6        (3) The Department shall have the right to audit the
7    information provided in the customer's application and
8    annual reports to ensure continued compliance with the
9    requirements of this subsection. Based on the audit, if the
10    Department determines the customer is no longer in
11    compliance with the requirements of items (A) through (I)
12    of item (1) of this subsection (m), as applicable, the
13    Department shall notify the customer in writing of the
14    noncompliance. The customer shall have 30 days to establish
15    its compliance, and failing to do so, may have its status
16    as a SDC or exempt customer revoked by the Department. The
17    Department shall treat all information provided by any
18    customer seeking SDC status or exemption from the
19    provisions of this Section as strictly confidential.
20        (4) Upon request, or on its own motion, the Commission
21    may open an investigation, no more than once every 3 years
22    and not before October 1, 2014, to evaluate the
23    effectiveness of the self-directing program described in
24    this subsection (m).
25    (n) The applicability of this Section to customers
26described in subsection (m) of this Section is conditioned on

 

 

SB3453 Enrolled- 32 -LRB097 18954 CEL 64192 b

1the existence of the SDC program. In no event will any
2provision of this Section apply to such customers after January
31, 2020.
4(Source: P.A. 96-33, eff. 7-10-09; revised 11-18-11.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.