Rep. Arthur Turner

Filed: 5/1/2013

 

 


 

 


 
09800SB2350ham001LRB098 10156 CEL 45246 a

1
AMENDMENT TO SENATE BILL 2350

2    AMENDMENT NO. ______. Amend Senate Bill 2350 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Public Utilities Act is amended by changing
5Sections 16-111.7 and 19-140 as follows:
 
6    (220 ILCS 5/16-111.7)
7    Sec. 16-111.7. On-bill financing program; electric
8utilities.
9    (a) The Illinois General Assembly finds that Illinois homes
10and businesses have the potential to save energy through
11conservation and cost-effective energy efficiency measures.
12Programs created pursuant to this Section will allow utility
13customers to purchase cost-effective energy efficiency
14measures, including measures set forth in a
15Commission-approved energy efficiency and demand-response plan
16under Section 8-103 of this Act and that are cost-effective as

 

 

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1that term is defined by that Section, with no required initial
2upfront payment, and to pay the cost of those products and
3services over time on their utility bill.
4    (b) Notwithstanding any other provision of this Act, an
5electric utility serving more than 100,000 customers on January
61, 2009 shall offer a Commission-approved on-bill financing
7program ("program") that allows its eligible retail customers,
8as that term is defined in Section 16-111.5 of this Act, who
9own a residential single family home, duplex, or other
10residential building with 4 or less units, or condominium at
11which the electric service is being provided (i) to borrow
12funds from a third party lender in order to purchase electric
13energy efficiency measures approved under the program for
14installation in such home or condominium without any required
15upfront payment and (ii) to pay back such funds over time
16through the electric utility's bill. Based upon the process
17described in subsection (b-5) of this Section, small commercial
18retail customers, as that term is defined in Section 16-102 of
19this Act, who own the premises at which electric service is
20being provided may be included in such program. After receiving
21a request from an electric utility for approval of a proposed
22program and tariffs pursuant to this Section, the Commission
23shall render its decision within 120 days. If no decision is
24rendered within 120 days, then the request shall be deemed to
25be approved.
26    Beginning no later than December 31, 2013, an electric

 

 

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1utility subject to this subsection (b) shall also offer its
2program to eligible retail customers that own multifamily
3residential or mixed-use buildings with no more than 50
4residential units, provided, however, that such customers must
5either be a residential customer or small commercial customer
6and may not use the program in such a way that repayment of the
7cost of energy efficiency measures is made through tenants'
8utility bills. An electric utility may impose a per site loan
9limit not to exceed $150,000. The program, and loans issued
10thereunder, shall only be offered to customers of the utility
11that meet the requirements of this Section and that also have
12an electric service account at the premises where the energy
13efficiency measures being financed shall be installed.
14    For purposes of this Section, "small commercial customer"
15means, for an electric utility serving more than 3,000,000
16retail customers, those customers having peak demand of less
17than 100 kilowatts, and, for an electric utility serving less
18than 3,000,000 retail customers, those customers having peak
19demand of less than 150 kilowatts; provided, however, that in
20the event the Commission, after the effective date of this
21amendatory Act of the 98th General Assembly, approves changes
22to a utility's tariffs that reflects new or revised demand
23criteria for the utility's customer rate classifications, then
24the utility may file a petition with the Commission to revise
25the applicable definition of a small commercial customer to
26reflect the new or revised demand criteria for the purposes of

 

 

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1this Section. After notice and hearing, the Commission shall
2enter an order approving, or approving with modification, the
3revised definition within 60 days after the utility files the
4petition.
5    (b-5) Within 30 days after the effective date of this
6amendatory Act of the 96th General Assembly, the Commission
7shall convene a workshop process during which interested
8participants may discuss issues related to the program,
9including program design, eligible electric energy efficiency
10measures, vendor qualifications, and a methodology for
11ensuring ongoing compliance with such qualifications,
12financing, sample documents such as request for proposals,
13contracts and agreements, dispute resolution, pre-installment
14and post-installment verification, and evaluation. The
15workshop process shall be completed within 150 days after the
16effective date of this amendatory Act of the 96th General
17Assembly.
18    (c) Not later than 60 days following completion of the
19workshop process described in subsection (b-5) of this Section,
20each electric utility subject to subsection (b) of this Section
21shall submit a proposed program to the Commission that contains
22the following components:
23        (1) A list of recommended electric energy efficiency
24    measures that will be eligible for on-bill financing. An
25    eligible electric energy efficiency measure ("measure")
26    shall be a product or service for which one or more of the

 

 

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1    following is true defined by the following:
2            (A) (blank); the measure would be applied to or
3        replace electric energy-using equipment; and either
4            (B) the projected application of the measure to
5        equipment and systems will have estimated electricity
6        savings (determined by rates in effect at the time of
7        purchase), that are sufficient to cover the costs of
8        implementing the measures, including finance charges
9        and any program fees not recovered pursuant to
10        subsection (f) of this Section; to assist the electric
11        utility in identifying or approving measures, the
12        utility may consult with the Department of Commerce and
13        Economic Opportunity, as well as with retailers,
14        technicians, and installers of electric energy
15        efficiency measures and energy auditors (collectively
16        "vendors"); or
17            (C) the product or service measure is included in a
18        Commission-approved energy efficiency and
19        demand-response plan under Section 8-103 of this Act
20        and is cost-effective as that term is defined by that
21        Section.
22        (2) The electric utility shall issue a request for
23    proposals ("RFP") to lenders for purposes of providing
24    financing to participants to pay for approved measures. The
25    RFP criteria shall include, but not be limited to, the
26    interest rate, origination fees, and credit terms. The

 

 

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1    utility shall select the winning bidders based on its
2    evaluation of these criteria, with a preference for those
3    bids containing the rates, fees, and terms most favorable
4    to participants;
5        (3) The utility shall work with the lenders selected
6    pursuant to the RFP process, and with vendors, to establish
7    the terms and processes pursuant to which a participant can
8    purchase eligible electric energy efficiency measures
9    using the financing obtained from the lender. The vendor
10    shall explain and offer the approved financing packaging to
11    those customers identified in subsection (b) of this
12    Section and shall assist customers in applying for
13    financing. As part of the process, vendors shall also
14    provide to participants information about any other
15    incentives that may be available for the measures.
16        (4) The lender shall conduct credit checks or undertake
17    other appropriate measures to limit credit risk, and shall
18    review and approve or deny financing applications
19    submitted by customers identified in subsection (b) of this
20    Section. Following the lender's approval of financing and
21    the participant's purchase of the measure or measures, the
22    lender shall forward payment information to the electric
23    utility, and the utility shall add as a separate line item
24    on the participant's utility bill a charge showing the
25    amount due under the program each month.
26        (5) A loan issued to a participant pursuant to the

 

 

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1    program shall be the sole responsibility of the
2    participant, and any dispute that may arise concerning the
3    loan's terms, conditions, or charges shall be resolved
4    between the participant and lender. Upon transfer of the
5    property title for the premises at which the participant
6    receives electric service from the utility or the
7    participant's request to terminate service at such
8    premises, the participant shall pay in full its electric
9    utility bill, including all amounts due under the program,
10    provided that this obligation may be modified as provided
11    in subsection (g) of this Section. Amounts due under the
12    program shall be deemed amounts owed for residential and,
13    as appropriate, small commercial electric service.
14        (6) The electric utility shall remit payment in full to
15    the lender each month on behalf of the participant. In the
16    event a participant defaults on payment of its electric
17    utility bill, the electric utility shall continue to remit
18    all payments due under the program to the lender, and the
19    utility shall be entitled to recover all costs related to a
20    participant's nonpayment through the automatic adjustment
21    clause tariff established pursuant to Section 16-111.8 of
22    this Act. In addition, the electric utility shall retain a
23    security interest in the measure or measures purchased
24    under the program, and the utility retains its right to
25    disconnect a participant that defaults on the payment of
26    its utility bill.

 

 

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1        (7) The total outstanding amount financed under the
2    programs in this subsection and subsection (c-5) of this
3    Section program shall not exceed $2.5 million for an
4    electric utility or electric utilities under a single
5    holding company, provided that the electric utility or
6    electric utilities may petition the Commission for an
7    increase in such amount.
8    (c-5) Within 120 days after the effective date of this
9amendatory Act of the 98th General Assembly, each electric
10utility subject to the requirements of this Section shall
11submit an informational filing to the Commission that describes
12its plan for implementing the provisions of this amendatory Act
13of the 98th General Assembly on or before December 31, 2013.
14Such filing shall also describe how the electric utility shall
15coordinate its program with any gas utility or utilities that
16provide gas service to buildings within the electric utility's
17service territory so that it is practical and feasible for the
18owner of a multifamily building to make a single application to
19access loans for both gas and electric energy efficiency
20measures in any individual building.
21    (d) A program approved by the Commission shall also include
22the following criteria and guidelines for such program:
23        (1) guidelines for financing of measures installed
24    under a program, including, but not limited to, RFP
25    criteria and limits on both individual loan amounts and the
26    duration of the loans;

 

 

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1        (2) criteria and standards for identifying and
2    approving measures;
3        (3) qualifications of vendors that will market or
4    install measures, as well as a methodology for ensuring
5    ongoing compliance with such qualifications;
6        (4) sample contracts and agreements necessary to
7    implement the measures and program; and
8        (5) the types of data and information that utilities
9    and vendors participating in the program shall collect for
10    purposes of preparing the reports required under
11    subsection (g) of this Section.
12    (e) The proposed program submitted by each electric utility
13shall be consistent with the provisions of this Section that
14define operational, financial and billing arrangements between
15and among program participants, vendors, lenders, and the
16electric utility.
17    (f) An electric utility shall recover all of the prudently
18incurred costs of offering a program approved by the Commission
19pursuant to this Section, including, but not limited to, all
20start-up and administrative costs and the costs for program
21evaluation. All prudently incurred costs under this Section
22shall be recovered from the residential and small commercial
23retail customer classes eligible to participate in the program
24through the automatic adjustment clause tariff established
25pursuant to Section 8-103 of this Act.
26    (g) An independent evaluation of a program shall be

 

 

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1conducted after 3 years of the program's operation. The
2electric utility shall retain an independent evaluator who
3shall evaluate the effects of the measures installed under the
4program and the overall operation of the program, including,
5but not limited to, customer eligibility criteria and whether
6the payment obligation for permanent electric energy
7efficiency measures that will continue to provide benefits of
8energy savings should attach to the meter location. As part of
9the evaluation process, the evaluator shall also solicit
10feedback from participants and interested stakeholders. The
11evaluator shall issue a report to the Commission on its
12findings no later than 4 years after the date on which the
13program commenced, and the Commission shall issue a report to
14the Governor and General Assembly including a summary of the
15information described in this Section as well as its
16recommendations as to whether the program should be
17discontinued, continued with modification or modifications or
18continued without modification, provided that any recommended
19modifications shall only apply prospectively and to measures
20not yet installed or financed.
21    (h) An electric utility offering a Commission-approved
22program pursuant to this Section shall not be required to
23comply with any other statute, order, rule, or regulation of
24this State that may relate to the offering of such program,
25provided that nothing in this Section is intended to limit the
26electric utility's obligation to comply with this Act and the

 

 

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1Commission's orders, rules, and regulations, including Part
2280 of Title 83 of the Illinois Administrative Code.
3    (i) The source of a utility customer's electric supply
4shall not disqualify a customer from participation in the
5utility's on-bill financing program. Customers of alternative
6retail electric suppliers may participate in the program under
7the same terms and conditions applicable to the utility's
8supply customers.
9(Source: P.A. 96-33, eff. 7-10-09; 97-616, eff. 10-26-11.)
 
10    (220 ILCS 5/19-140)
11    Sec. 19-140. On-bill financing program; gas utilities.
12    (a) The Illinois General Assembly finds that Illinois homes
13and businesses have the potential to save energy through
14conservation and cost-effective energy efficiency measures.
15Programs created pursuant to this Section will allow utility
16customers to purchase cost-effective energy efficiency
17measures, including measures set forth in a
18Commission-approved energy efficiency plan under Section 8-104
19of this Act, with no required initial upfront payment, and to
20pay the cost of those products and services over time on their
21utility bill.
22    (b) Notwithstanding any other provision of this Act, a gas
23utility serving more than 100,000 customers on January 1, 2009
24shall offer a Commission-approved on-bill financing program
25("program") that allows its retail customers who own a

 

 

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1residential single family home, duplex, or other residential
2building with 4 or less units, or condominium at which the gas
3service is being provided (i) to borrow funds from a third
4party lender in order to purchase gas energy efficiency
5measures approved under the program for installation in such
6home or condominium without any required upfront payment and
7(ii) to pay back such funds over time through the gas utility's
8bill. Based upon the process described in subsection (b-5) of
9this Section, small commercial retail customers, as that term
10is defined in Section 19-105 of this Act, who own the premises
11at which gas service is being provided may be included in such
12program. After receiving a request from a gas utility for
13approval of a proposed program and tariffs pursuant to this
14Section, the Commission shall render its decision within 120
15days. If no decision is rendered within 120 days, then the
16request shall be deemed to be approved. Beginning no later than
17December 31, 2013, a gas utility subject to this subsection (b)
18shall also offer its program to eligible retail customers that
19own a multifamily residential or mixed-use building with no
20more than 50 residential units, provided, however, that such
21customer must either be a residential customer or small
22commercial customer and may not use the program in such a way
23that repayment of the cost of energy efficiency measures is
24made through tenants' utility bills. A gas utility may impose a
25per site loan limit not to exceed $150,000. The program, and
26loans issued thereunder, shall only be offered to customers of

 

 

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1the utility that meet the requirements of this Section and that
2also have a gas service account at the premises where the
3energy efficiency measures being financed shall be installed.
4    For purposes of this Section, a small commercial customer
5for a gas utility shall be defined in that gas utility's
6informational filing that is made under subsection (c-5) of
7this Section.
8    (b-5) Within 30 days after the effective date of this
9amendatory Act of the 96th General Assembly, the Commission
10shall convene a workshop process during which interested
11participants may discuss issues related to the program,
12including program design, eligible gas energy efficiency
13measures, vendor qualifications, and a methodology for
14ensuring ongoing compliance with such qualifications,
15financing, sample documents such as request for proposals,
16contracts and agreements, dispute resolution, pre-installment
17and post-installment verification, and evaluation. The
18workshop process shall be completed within 150 days after the
19effective date of this amendatory Act of the 96th General
20Assembly.
21    (c) Not later than 60 days following completion of the
22workshop process described in subsection (b-5) of this Section,
23each gas utility subject to subsection (b) of this Section
24shall submit a proposed program to the Commission that contains
25the following components:
26        (1) A list of recommended gas energy efficiency

 

 

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1    measures that will be eligible for on-bill financing. An
2    eligible gas energy efficiency measure ("measure") shall
3    be a product or service for which one or more of the
4    following is true defined by the following:
5            (A) (blank); The measure would be applied to or
6        replace gas energy-using equipment; and
7            (B) the projected Application of the measure to
8        equipment and systems will have estimated gas savings
9        (determined by rates in effect at the time of
10        purchase), that are sufficient to cover the costs of
11        implementing the measures, including finance charges
12        and any program fees not recovered pursuant to
13        subsection (f) of this Section; or . To assist the gas
14        utility in identifying or approving measures, the
15        utility may consult with the Department of Commerce and
16        Economic Opportunity, as well as with retailers,
17        technicians and installers of gas energy efficiency
18        measures and energy auditors (collectively "vendors").
19            (C) the product or service is included in a
20        Commission-approved energy efficiency plan under
21        Section 8-104 of this Act.
22        (2) The gas utility shall issue a request for proposals
23    ("RFP") to lenders for purposes of providing financing to
24    participants to pay for approved measures. The RFP criteria
25    shall include, but not be limited to, the interest rate,
26    origination fees, and credit terms. The utility shall

 

 

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1    select the winning bidders based on its evaluation of these
2    criteria, with a preference for those bids containing the
3    rates, fees, and terms most favorable to participants.
4        (3) The utility shall work with the lenders selected
5    pursuant to the RFP process, and with vendors, to establish
6    the terms and processes pursuant to which a participant can
7    purchase eligible gas energy efficiency measures using the
8    financing obtained from the lender. The vendor shall
9    explain and offer the approved financing packaging to those
10    customers identified in subsection (b) of this Section and
11    shall assist customers in applying for financing. As part
12    of such process, vendors shall also provide to participants
13    information about any other incentives that may be
14    available for the measures.
15        (4) The lender shall conduct credit checks or undertake
16    other appropriate measures to limit credit risk, and shall
17    review and approve or deny financing applications
18    submitted by customers identified in subsection (b) of this
19    Section. Following the lender's approval of financing and
20    the participant's purchase of the measure or measures, the
21    lender shall forward payment information to the gas
22    utility, and the utility shall add as a separate line item
23    on the participant's utility bill a charge showing the
24    amount due under the program each month.
25        (5) A loan issued to a participant pursuant to the
26    program shall be the sole responsibility of the

 

 

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1    participant, and any dispute that may arise concerning the
2    loan's terms, conditions, or charges shall be resolved
3    between the participant and lender. Upon transfer of the
4    property title for the premises at which the participant
5    receives gas service from the utility or the participant's
6    request to terminate service at such premises, the
7    participant shall pay in full its gas utility bill,
8    including all amounts due under the program, provided that
9    this obligation may be modified as provided in subsection
10    (g) of this Section. Amounts due under the program shall be
11    deemed amounts owed for residential and, as appropriate,
12    small commercial gas service.
13        (6) The gas utility shall remit payment in full to the
14    lender each month on behalf of the participant. In the
15    event a participant defaults on payment of its gas utility
16    bill, the gas utility shall continue to remit all payments
17    due under the program to the lender, and the utility shall
18    be entitled to recover all costs related to a participant's
19    nonpayment through the automatic adjustment clause tariff
20    established pursuant to Section 19-145 of this Act. In
21    addition, the gas utility shall retain a security interest
22    in the measure or measures purchased under the program, and
23    the utility retains its right to disconnect a participant
24    that defaults on the payment of its utility bill.
25        (7) The total outstanding amount financed under the
26    programs in this subsection and subsection (c-5) of this

 

 

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1    Section program shall not exceed $2.5 million for a gas
2    utility or gas utilities under a single holding company,
3    provided that the gas utility or gas utilities may petition
4    the Commission for an increase in such amount.
5    (c-5) Within 120 days after the effective date of this
6amendatory Act of the 98th General Assembly, each covered gas
7utility shall submit an informational filing to the Commission
8that describes its plan for implementing the provisions of this
9amendatory Act of the 98th General Assembly on or before
10December 31, 2013. A gas utility subject to this Section shall
11cooperate with any electric utility that provides electric
12service to buildings within the gas utility's service territory
13so that it is practical and feasible for the owner of a
14multifamily building to make a single application to access
15loans for both gas and electric energy efficiency measures in
16any individual building.
17    (d) A program approved by the Commission shall also include
18the following criteria and guidelines for such program:
19        (1) guidelines for financing of measures installed
20    under a program, including, but not limited to, RFP
21    criteria and limits on both individual loan amounts and the
22    duration of the loans;
23        (2) criteria and standards for identifying and
24    approving measures;
25        (3) qualifications of vendors that will market or
26    install measures, as well as a methodology for ensuring

 

 

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1    ongoing compliance with such qualifications;
2        (4) sample contracts and agreements necessary to
3    implement the measures and program; and
4        (5) the types of data and information that utilities
5    and vendors participating in the program shall collect for
6    purposes of preparing the reports required under
7    subsection (g) of this Section.
8    (e) The proposed program submitted by each gas utility
9shall be consistent with the provisions of this Section that
10define operational, financial, and billing arrangements
11between and among program participants, vendors, lenders, and
12the gas utility.
13    (f) A gas utility shall recover all of the prudently
14incurred costs of offering a program approved by the Commission
15pursuant to this Section, including, but not limited to, all
16start-up and administrative costs and the costs for program
17evaluation. All prudently incurred costs under this Section
18shall be recovered from the residential and small commercial
19retail customer classes eligible to participate in the program
20through the automatic adjustment clause tariff established
21pursuant to Section 8-104 of this Act.
22    (g) An independent evaluation of a program shall be
23conducted after 3 years of the program's operation. The gas
24utility shall retain an independent evaluator who shall
25evaluate the effects of the measures installed under the
26program and the overall operation of the program, including,

 

 

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1but not limited to, customer eligibility criteria and whether
2the payment obligation for permanent gas energy efficiency
3measures that will continue to provide benefits of energy
4savings should attach to the meter location. As part of the
5evaluation process, the evaluator shall also solicit feedback
6from participants and interested stakeholders. The evaluator
7shall issue a report to the Commission on its findings no later
8than 4 years after the date on which the program commenced, and
9the Commission shall issue a report to the Governor and General
10Assembly including a summary of the information described in
11this Section as well as its recommendations as to whether the
12program should be discontinued, continued with modification or
13modifications or continued without modification, provided that
14any recommended modifications shall only apply prospectively
15and to measures not yet installed or financed.
16    (h) A gas utility offering a Commission-approved program
17pursuant to this Section shall not be required to comply with
18any other statute, order, rule, or regulation of this State
19that may relate to the offering of such program, provided that
20nothing in this Section is intended to limit the gas utility's
21obligation to comply with this Act and the Commission's orders,
22rules, and regulations, including Part 280 of Title 83 of the
23Illinois Administrative Code.
24    (i) The source of a utility customer's gas supply shall not
25disqualify a customer from participation in the utility's
26on-bill financing program. Customers of alternative gas

 

 

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1suppliers may participate in the program under the same terms
2and conditions applicable to the utility's supply customers.
3(Source: P.A. 96-33, eff. 7-10-09.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".