Full Text of SB2365 98th General Assembly
SB2365sam001 98TH GENERAL ASSEMBLY | Sen. Don Harmon Filed: 4/15/2013
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| 1 | | AMENDMENT TO SENATE BILL 2365
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2365 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Finance Authority Act is amended | 5 | | by changing Section 825-65 as follows: | 6 | | (20 ILCS 3501/825-65) | 7 | | Sec. 825-65. Clean Coal, Coal, Energy Efficiency, and | 8 | | Renewable Energy Project Financing. | 9 | | (a) Findings and declaration of policy. | 10 | | (i) It is hereby found and declared that
Illinois has | 11 | | abundant coal resources and, in some areas of Illinois, the | 12 | | demand
for power exceeds the generating capacity. | 13 | | Incentives to encourage the
construction of coal-fueled | 14 | | electric generating plants in Illinois to ensure
power | 15 | | generating capacity into the future and to advance clean | 16 | | coal technology and the use of Illinois coal are in the |
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| 1 | | best interests of all of
the citizens of Illinois. | 2 | | (ii) It is further found and declared that Illinois has | 3 | | abundant potential and resources to develop renewable | 4 | | energy resource projects and that there are many | 5 | | opportunities to invest in cost-effective energy | 6 | | efficiency projects throughout the State. The development | 7 | | of those projects will create jobs and investment as well | 8 | | as decrease environmental impacts and promote energy | 9 | | independence in Illinois. Accordingly, the development of | 10 | | those projects is in the best interests of all of the | 11 | | citizens of Illinois. | 12 | | (iii) The Authority is authorized to issue bonds to | 13 | | help
finance Clean Coal, Coal, Energy Efficiency, and | 14 | | Renewable Energy projects pursuant to this
Section. | 15 | | (b) Definitions. | 16 | | (i) "Clean Coal Project" means (A) "clean coal | 17 | | facility", as defined in Section 1-10 of the Illinois Power | 18 | | Agency Act; (B) "clean coal SNG facility", as defined in | 19 | | Section 1-10 of the Illinois Power Agency Act; (C) | 20 | | transmission lines and associated equipment that transfer | 21 | | electricity from points of supply to points of delivery for | 22 | | projects described in this subsection (b); (D) pipelines or | 23 | | other methods to transfer carbon dioxide from the point of | 24 | | production to the point of storage or sequestration for | 25 | | projects described in this subsection (b); or (E) projects | 26 | | to provide carbon abatement technology for existing |
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| 1 | | generating facilities. | 2 | | (ii) "Coal Project" means new electric
generating | 3 | | facilities or new gasification facilities, as defined in
| 4 | | Section 605-332 of the Department of Commerce and
Economic | 5 | | Opportunity Law of the Civil Administrative Code of | 6 | | Illinois, which
may
include mine-mouth power plants, | 7 | | projects that employ the use of clean coal
technology, | 8 | | projects to provide scrubber technology for existing | 9 | | energy
generating plants, or projects to provide electric | 10 | | transmission facilities or new gasification facilities. | 11 | | (iii) "Energy Efficiency Project" means measures that | 12 | | reduce the amount of electricity or natural gas required to | 13 | | achieve a given end use, consistent with Section 1-10 of | 14 | | the Illinois Power Agency Act. "Energy Efficiency Project" | 15 | | also includes measures that reduce the total Btus of | 16 | | electricity and natural gas needed to meet the end use or | 17 | | uses consistent with Section 1-10 of the Illinois Power | 18 | | Agency Act. | 19 | | (iv) "Renewable Energy Project" means (A) a project | 20 | | that uses renewable energy resources, as defined in Section | 21 | | 1-10 of the Illinois Power Agency Act; (B) a project that | 22 | | uses environmentally preferable technologies and practices | 23 | | that result in improvements to the production of renewable | 24 | | fuels, including but not limited to, cellulosic | 25 | | conversion, water and energy conservation, fractionation, | 26 | | alternative feedstocks, or reduced green house gas |
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| 1 | | emissions; (C) transmission lines and associated equipment | 2 | | that transfer electricity from points of supply to points | 3 | | of delivery for projects described in this subsection (b); | 4 | | or (D) projects that use technology for the storage of | 5 | | renewable energy, including, without limitation, the use | 6 | | of battery or electrochemical storage technology for | 7 | | mobile or stationary applications. | 8 | | (c) Creation of reserve funds. The Authority may establish | 9 | | and maintain one
or more reserve funds to enhance bonds issued | 10 | | by the Authority for a Clean Coal Project, a Coal Project, an | 11 | | Energy Efficiency Project, or a Renewable
Energy Project.
There | 12 | | may be one or more accounts in these reserve funds in which | 13 | | there may be
deposited: | 14 | | (1) any proceeds of the bonds issued by the Authority | 15 | | required to
be deposited therein by the terms of any | 16 | | contract between the Authority and its
bondholders or any | 17 | | resolution of the Authority; | 18 | | (2) any other moneys or funds of the Authority that it | 19 | | may
determine to deposit therein from any other source; and | 20 | | (3) any other moneys or funds made available to the | 21 | | Authority.
Subject to the terms of any pledge to the owners | 22 | | of any bonds, moneys in any
reserve fund may be held and | 23 | | applied to the payment of principal, premium, if
any, and | 24 | | interest of such bonds. | 25 | | (d) Powers and duties. The Authority has the power: | 26 | | (1) To issue bonds in one or more series pursuant to |
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| 1 | | one or more
resolutions of the Authority for any Clean Coal | 2 | | Project, Coal Project, Energy Efficiency Project, or | 3 | | Renewable Energy Project authorized
under this Section, | 4 | | within the authorization set forth in subsection (e). | 5 | | (2) To provide for the funding of any reserves or other | 6 | | funds or
accounts deemed necessary by the Authority in | 7 | | connection with any bonds issued
by the Authority. | 8 | | (3) To pledge any funds of the Authority or funds made | 9 | | available to
the Authority that may be applied to such | 10 | | purpose as security for any bonds or
any guarantees, | 11 | | letters of credit, insurance contracts or similar credit
| 12 | | support
or liquidity instruments securing the bonds. | 13 | | (4) To enter into agreements or contracts with third | 14 | | parties,
whether public or private, including, without | 15 | | limitation, the United States of
America, the State or any | 16 | | department or agency thereof, to obtain any
| 17 | | appropriations, grants, loans or guarantees that are | 18 | | deemed necessary or
desirable by the Authority. Any such | 19 | | guarantee, agreement or contract may
contain terms and | 20 | | provisions necessary or desirable in connection with the
| 21 | | program, subject to the requirements established by the | 22 | | Act. | 23 | | (5) To exercise such other powers as are necessary or | 24 | | incidental to
the foregoing. | 25 | | (e) Clean Coal Project, Coal Project, Energy Efficiency | 26 | | Project, and Renewable Energy Project bond authorization and |
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| 1 | | financing limits. In
addition
to any other bonds authorized to | 2 | | be issued under
Sections 801-40(w), 825-60, 830-25
and 845-5, | 3 | | the Authority may have outstanding, at any time, bonds for the
| 4 | | purpose
enumerated in this
Section 825-65 in an aggregate | 5 | | principal amount that shall not
exceed $3,000,000,000, subject | 6 | | to the following limitations: (i) up to $300,000,000 may be | 7 | | issued to
finance projects, as described in clause (C) of | 8 | | subsection (b)(i) and clause (C) of subsection (b)(iv) of this | 9 | | Section 825-65; (ii) up to $500,000,000 may be issued to
| 10 | | finance projects, as described in clauses (D) and (E) of | 11 | | subsection (b)(i) of this Section 825-65; (iii) up to | 12 | | $2,000,000,000 may
be issued to finance Clean Coal Projects, as | 13 | | described in clauses (A) and (B) of subsection (b)(i) of this | 14 | | Section 825-65 and Coal Projects, as described in subsection | 15 | | (b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000 | 16 | | may be issued to finance Energy Efficiency Projects, as | 17 | | described in subsection (b)(iii) of this Section 825-65 and | 18 | | Renewable Energy Projects, as described in clauses (A), (B), | 19 | | and (D) of subsection (b)(iii) of this Section 825-65. An | 20 | | application for a loan
financed from bond proceeds from a | 21 | | borrower or its affiliates for a Clean Coal Project, a Coal | 22 | | Project, Energy Efficiency Project, or a Renewable
Energy | 23 | | Project may not be approved by the Authority for an amount in | 24 | | excess
of $450,000,000 for any borrower or its affiliates. | 25 | | These bonds shall not
constitute an indebtedness or obligation | 26 | | of the State of Illinois and it shall
be plainly stated on the |
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| 1 | | face of each bond that it does not constitute an
indebtedness | 2 | | or obligation of the State of Illinois, but is payable solely | 3 | | from
the revenues, income or other assets of the Authority | 4 | | pledged therefor. | 5 | | (f) The bonding authority granted under this Section is in | 6 | | addition to and not limited by the provisions of Section 845-5. | 7 | | (Source: P.A. 95-470, eff. 8-27-07; 96-103, eff. 1-1-10; | 8 | | 96-817, eff. 1-1-10.) | 9 | | Section 10. The Illinois Power Agency Act is amended by | 10 | | changing Section 1-10 as follows:
| 11 | | (20 ILCS 3855/1-10)
| 12 | | Sec. 1-10. Definitions. | 13 | | "Agency" means the Illinois Power Agency. | 14 | | "Agency loan agreement" means any agreement pursuant to | 15 | | which the Illinois Finance Authority agrees to loan the | 16 | | proceeds of revenue bonds issued with respect to a project to | 17 | | the Agency upon terms providing for loan repayment installments | 18 | | at least sufficient to pay when due all principal of, interest | 19 | | and premium, if any, on those revenue bonds, and providing for | 20 | | maintenance, insurance, and other matters in respect of the | 21 | | project. | 22 | | "Authority" means the Illinois Finance Authority. | 23 | | "Clean coal facility" means an electric generating | 24 | | facility that uses primarily coal as a feedstock and that |
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| 1 | | captures and sequesters carbon dioxide emissions at the | 2 | | following levels: at least 50% of the total carbon dioxide | 3 | | emissions that the facility would otherwise emit if, at the | 4 | | time construction commences, the facility is scheduled to | 5 | | commence operation before 2016, at least 70% of the total | 6 | | carbon dioxide emissions that the facility would otherwise emit | 7 | | if, at the time construction commences, the facility is | 8 | | scheduled to commence operation during 2016 or 2017, and at | 9 | | least 90% of the total carbon dioxide emissions that the | 10 | | facility would otherwise emit if, at the time construction | 11 | | commences, the facility is scheduled to commence operation | 12 | | after 2017. The power block of the clean coal facility shall | 13 | | not exceed allowable emission rates for sulfur dioxide, | 14 | | nitrogen oxides, carbon monoxide, particulates and mercury for | 15 | | a natural gas-fired combined-cycle facility the same size as | 16 | | and in the same location as the clean coal facility at the time | 17 | | the clean coal facility obtains an approved air permit. All | 18 | | coal used by a clean coal facility shall have high volatile | 19 | | bituminous rank and greater than 1.7 pounds of sulfur per | 20 | | million btu content, unless the clean coal facility does not | 21 | | use gasification technology and was operating as a conventional | 22 | | coal-fired electric generating facility on June 1, 2009 (the | 23 | | effective date of Public Act 95-1027). | 24 | | "Clean coal SNG brownfield facility" means a facility that | 25 | | (1) has commenced construction by July 1, 2015 on an urban | 26 | | brownfield site in a municipality with at least 1,000,000 |
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| 1 | | residents; (2) uses a gasification process to produce | 2 | | substitute natural gas; (3) uses coal as at least 50% of the | 3 | | total feedstock over the term of any sourcing agreement with a | 4 | | utility and the remainder of the feedstock may be either | 5 | | petroleum coke or coal, with all such coal having a high | 6 | | bituminous rank and greater than 1.7 pounds of sulfur per | 7 | | million Btu content unless the facility reasonably determines
| 8 | | that it is necessary to use additional petroleum coke to
| 9 | | deliver additional consumer savings, in which case the
facility | 10 | | shall use coal for at least 35% of the total
feedstock over the | 11 | | term of any sourcing agreement; and (4) captures and sequesters | 12 | | at least 85% of the total carbon dioxide emissions that the | 13 | | facility would otherwise emit. | 14 | | "Clean coal SNG facility" means a facility that uses a | 15 | | gasification process to produce substitute natural gas, that | 16 | | sequesters at least 90% of the total carbon dioxide emissions | 17 | | that the facility would otherwise emit, that uses at least 90% | 18 | | coal as a feedstock, with all such coal having a high | 19 | | bituminous rank and greater than 1.7 pounds of sulfur per | 20 | | million btu content, and that has a valid and effective permit | 21 | | to construct emission sources and air pollution control | 22 | | equipment and approval with respect to the federal regulations | 23 | | for Prevention of Significant Deterioration of Air Quality | 24 | | (PSD) for the plant pursuant to the federal Clean Air Act; | 25 | | provided, however, a clean coal SNG brownfield facility shall | 26 | | not be a clean coal SNG facility. |
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| 1 | | "Commission" means the Illinois Commerce Commission. | 2 | | "Costs incurred in connection with the development and | 3 | | construction of a facility" means: | 4 | | (1) the cost of acquisition of all real property, | 5 | | fixtures, and improvements in connection therewith and | 6 | | equipment, personal property, and other property, rights, | 7 | | and easements acquired that are deemed necessary for the | 8 | | operation and maintenance of the facility; | 9 | | (2) financing costs with respect to bonds, notes, and | 10 | | other evidences of indebtedness of the Agency; | 11 | | (3) all origination, commitment, utilization, | 12 | | facility, placement, underwriting, syndication, credit | 13 | | enhancement, and rating agency fees; | 14 | | (4) engineering, design, procurement, consulting, | 15 | | legal, accounting, title insurance, survey, appraisal, | 16 | | escrow, trustee, collateral agency, interest rate hedging, | 17 | | interest rate swap, capitalized interest, contingency, as | 18 | | required by lenders, and other financing costs, and other | 19 | | expenses for professional services; and | 20 | | (5) the costs of plans, specifications, site study and | 21 | | investigation, installation, surveys, other Agency costs | 22 | | and estimates of costs, and other expenses necessary or | 23 | | incidental to determining the feasibility of any project, | 24 | | together with such other expenses as may be necessary or | 25 | | incidental to the financing, insuring, acquisition, and | 26 | | construction of a specific project and starting up, |
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| 1 | | commissioning, and placing that project in operation. | 2 | | "Department" means the Department of Commerce and Economic | 3 | | Opportunity. | 4 | | "Director" means the Director of the Illinois Power Agency. | 5 | | "Demand-response" means measures that decrease peak | 6 | | electricity demand or shift demand from peak to off-peak | 7 | | periods. | 8 | | "Distributed renewable energy generation device" means a | 9 | | device that is: | 10 | | (1) powered by wind, solar thermal energy, | 11 | | photovoltaic cells and panels, biodiesel, crops and | 12 | | untreated and unadulterated organic waste biomass, tree | 13 | | waste, and hydropower that does not involve new | 14 | | construction or significant expansion of hydropower dams; | 15 | | (2) interconnected at the distribution system level of | 16 | | either an electric utility as defined in this Section, an | 17 | | alternative retail electric supplier as defined in Section | 18 | | 16-102 of the Public Utilities Act, a municipal utility as | 19 | | defined in Section 3-105 of the Public Utilities Act, or a | 20 | | rural electric cooperative as defined in Section 3-119 of | 21 | | the Public Utilities Act; | 22 | | (3) located on the customer side of the customer's | 23 | | electric meter and is primarily used to offset that | 24 | | customer's electricity load; and | 25 | | (4) limited in nameplate capacity to no more than 2,000 | 26 | | kilowatts. |
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| 1 | | "Energy efficiency" means measures that reduce the amount | 2 | | of electricity or natural gas required to achieve a given end | 3 | | use. "Energy efficiency" also includes measures that reduce the | 4 | | total Btus of electricity and natural gas needed to meet the | 5 | | end use or uses. | 6 | | "Electric utility" has the same definition as found in | 7 | | Section 16-102 of the Public Utilities Act. | 8 | | "Facility" means an electric generating unit or a | 9 | | co-generating unit that produces electricity along with | 10 | | related equipment necessary to connect the facility to an | 11 | | electric transmission or distribution system. | 12 | | "Governmental aggregator" means one or more units of local | 13 | | government that individually or collectively procure | 14 | | electricity to serve residential retail electrical loads | 15 | | located within its or their jurisdiction. | 16 | | "Local government" means a unit of local government as | 17 | | defined in Section 1 of Article VII of the Illinois | 18 | | Constitution. | 19 | | "Municipality" means a city, village, or incorporated | 20 | | town. | 21 | | "Person" means any natural person, firm, partnership, | 22 | | corporation, either domestic or foreign, company, association, | 23 | | limited liability company, joint stock company, or association | 24 | | and includes any trustee, receiver, assignee, or personal | 25 | | representative thereof. | 26 | | "Project" means the planning, bidding, and construction of |
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| 1 | | a facility. | 2 | | "Public utility" has the same definition as found in | 3 | | Section 3-105 of the Public Utilities Act. | 4 | | "Real property" means any interest in land together with | 5 | | all structures, fixtures, and improvements thereon, including | 6 | | lands under water and riparian rights, any easements, | 7 | | covenants, licenses, leases, rights-of-way, uses, and other | 8 | | interests, together with any liens, judgments, mortgages, or | 9 | | other claims or security interests related to real property. | 10 | | "Renewable energy credit" means a tradable credit that | 11 | | represents the environmental attributes of a certain amount of | 12 | | energy produced from a renewable energy resource. | 13 | | "Renewable energy resources" includes energy and its | 14 | | associated renewable energy credit or renewable energy credits | 15 | | from wind, solar thermal energy, photovoltaic cells and panels, | 16 | | biodiesel, anaerobic digestion, crops and untreated and | 17 | | unadulterated organic waste biomass, tree waste, hydropower | 18 | | that does not involve new construction or significant expansion | 19 | | of hydropower dams, and other alternative sources of | 20 | | environmentally preferable energy. For purposes of this Act, | 21 | | landfill gas produced in the State is considered a renewable | 22 | | energy resource. "Renewable energy resources" does not include | 23 | | the incineration or burning of tires, garbage, general | 24 | | household, institutional, and commercial waste, industrial | 25 | | lunchroom or office waste, landscape waste other than tree | 26 | | waste, railroad crossties, utility poles, or construction or |
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| 1 | | demolition debris, other than untreated and unadulterated | 2 | | waste wood. | 3 | | "Revenue bond" means any bond, note, or other evidence of | 4 | | indebtedness issued by the Authority, the principal and | 5 | | interest of which is payable solely from revenues or income | 6 | | derived from any project or activity of the Agency. | 7 | | "Sequester" means permanent storage of carbon dioxide by | 8 | | injecting it into a saline aquifer, a depleted gas reservoir, | 9 | | or an oil reservoir, directly or through an enhanced oil | 10 | | recovery process that may involve intermediate storage, | 11 | | regardless of whether these activities are conducted by a clean | 12 | | coal facility, a clean coal SNG facility, a clean coal SNG | 13 | | brownfield facility, or a party with which a clean coal | 14 | | facility, clean coal SNG facility, or clean coal SNG brownfield | 15 | | facility has contracted for such purposes. | 16 | | "Sourcing agreement" means (i) in the case of an electric | 17 | | utility, an agreement between the owner of a clean coal | 18 | | facility and such electric utility, which agreement shall have | 19 | | terms and conditions meeting the requirements of paragraph (3) | 20 | | of subsection (d) of Section 1-75, (ii) in the case of an | 21 | | alternative retail electric supplier, an agreement between the | 22 | | owner of a clean coal facility and such alternative retail | 23 | | electric supplier, which agreement shall have terms and | 24 | | conditions meeting the requirements of Section 16-115(d)(5) of | 25 | | the Public Utilities Act, and (iii) in case of a gas utility, | 26 | | an agreement between the owner of a clean coal SNG brownfield |
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| 1 | | facility and the gas utility, which agreement shall have the | 2 | | terms and conditions meeting the requirements of subsection | 3 | | (h-1) of Section 9-220 of the Public Utilities Act. | 4 | | "Substitute natural gas" or "SNG" means a gas manufactured | 5 | | by gasification of hydrocarbon feedstock, which is | 6 | | substantially interchangeable in use and distribution with | 7 | | conventional natural gas. | 8 | | "Total resource cost test" or "TRC test" means a standard | 9 | | that is met if, for an investment in energy efficiency or | 10 | | demand-response measures, the benefit-cost ratio is greater | 11 | | than one. The benefit-cost ratio is the ratio of the net | 12 | | present value of the total benefits of the program to the net | 13 | | present value of the total costs as calculated over the | 14 | | lifetime of the measures. A total resource cost test compares | 15 | | the sum of avoided electric utility costs, representing the | 16 | | benefits that accrue to the system and the participant in the | 17 | | delivery of those efficiency measures, as well as other | 18 | | quantifiable societal benefits, including avoided natural gas | 19 | | utility costs, to the sum of all incremental costs of end-use | 20 | | measures that are implemented due to the program (including | 21 | | both utility and participant contributions), plus costs to | 22 | | administer, deliver, and evaluate each demand-side program, to | 23 | | quantify the net savings obtained by substituting the | 24 | | demand-side program for supply resources. In calculating | 25 | | avoided costs of power and energy that an electric utility | 26 | | would otherwise have had to acquire, reasonable estimates shall |
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| 1 | | be included of financial costs likely to be imposed by future | 2 | | regulations and legislation on emissions of greenhouse gases.
| 3 | | (Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; | 4 | | 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10; 97-96, eff. | 5 | | 7-13-11; 97-239, eff. 8-2-11; 97-491, eff. 8-22-11; 97-616, | 6 | | eff. 10-26-11; 97-813, eff. 7-13-12.)
| 7 | | Section 15. The Public Utilities Act is amended by changing | 8 | | Sections 8-103 and 8-104 as follows:
| 9 | | (220 ILCS 5/8-103)
| 10 | | Sec. 8-103. Energy efficiency and demand-response | 11 | | measures. | 12 | | (a) It is the policy of the State that electric utilities | 13 | | are required to use cost-effective energy efficiency and | 14 | | demand-response measures to reduce delivery load. Requiring | 15 | | investment in cost-effective energy efficiency and | 16 | | demand-response measures will reduce direct and indirect costs | 17 | | to consumers by decreasing environmental impacts and by | 18 | | avoiding or delaying the need for new generation, transmission, | 19 | | and distribution infrastructure. It serves the public interest | 20 | | to allow electric utilities to recover costs for reasonably and | 21 | | prudently incurred expenses for energy efficiency and | 22 | | demand-response measures. As used in this Section, | 23 | | "cost-effective" means that the measures satisfy the total | 24 | | resource cost test. The low-income measures described in |
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| 1 | | subsection (f)(4) of this Section shall not be required to meet | 2 | | the total resource cost test. For purposes of this Section, the | 3 | | terms "energy-efficiency", "demand-response", "electric | 4 | | utility", and "total resource cost test" shall have the | 5 | | meanings set forth in the Illinois Power Agency Act. For | 6 | | purposes of this Section, the amount per kilowatthour means the | 7 | | total amount paid for electric service expressed on a per | 8 | | kilowatthour basis. For purposes of this Section, the total | 9 | | amount paid for electric service includes without limitation | 10 | | estimated amounts paid for supply, transmission, distribution, | 11 | | surcharges, and add-on-taxes. | 12 | | (b) Electric utilities shall implement cost-effective | 13 | | energy efficiency measures to meet the following incremental | 14 | | annual energy savings goals: | 15 | | (1) 0.2% of energy delivered in the year commencing | 16 | | June 1, 2008; | 17 | | (2) 0.4% of energy delivered in the year commencing | 18 | | June 1, 2009; | 19 | | (3) 0.6% of energy delivered in the year commencing | 20 | | June 1, 2010; | 21 | | (4) 0.8% of energy delivered in the year commencing | 22 | | June 1, 2011; | 23 | | (5) 1% of energy delivered in the year commencing June | 24 | | 1, 2012; | 25 | | (6) 1.4% of energy delivered in the year commencing | 26 | | June 1, 2013; |
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| 1 | | (7) 1.8% of energy delivered in the year commencing | 2 | | June 1, 2014; and | 3 | | (8) 2% of energy delivered in the year commencing June | 4 | | 1, 2015 and each year thereafter. | 5 | | Electric utilities may comply with this subsection (b) by | 6 | | meeting the annual incremental savings goal in the applicable | 7 | | year or by showing that total savings associated with measures | 8 | | implemented on or after May 31, 2014 were equal to the sum of | 9 | | each annual incremental savings requirement on or after June 1, | 10 | | 2014 through the end of the applicable year. | 11 | | (c) Electric utilities shall implement cost-effective | 12 | | demand-response measures to reduce peak demand by 0.1% over the | 13 | | prior year for eligible retail customers, as defined in Section | 14 | | 16-111.5 of this Act, and for customers that elect hourly | 15 | | service from the utility pursuant to Section 16-107 of this | 16 | | Act, provided those customers have not been declared | 17 | | competitive. This requirement commences June 1, 2008 and | 18 | | continues for 10 years. | 19 | | (d) Notwithstanding the requirements of subsections (b) | 20 | | and (c) of this Section, an electric utility shall reduce the | 21 | | amount of energy efficiency and demand-response measures | 22 | | implemented over in any 3-year period single year by an amount | 23 | | necessary to limit the estimated average annual increase in the | 24 | | amounts paid by retail customers in connection with electric | 25 | | service due to the cost of those measures to: | 26 | | (1) in 2008, no more than 0.5% of the amount paid per |
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| 1 | | kilowatthour by those customers during the year ending May | 2 | | 31, 2007; | 3 | | (2) in 2009, the greater of an additional 0.5% of the | 4 | | amount paid per kilowatthour by those customers during the | 5 | | year ending May 31, 2008 or 1% of the amount paid per | 6 | | kilowatthour by those customers during the year ending May | 7 | | 31, 2007; | 8 | | (3) in 2010, the greater of an additional 0.5% of the | 9 | | amount paid per kilowatthour by those customers during the | 10 | | year ending May 31, 2009 or 1.5% of the amount paid per | 11 | | kilowatthour by those customers during the year ending May | 12 | | 31, 2007; | 13 | | (4) in 2011, the greater of an additional 0.5% of the | 14 | | amount paid per kilowatthour by those customers during the | 15 | | year ending May 31, 2010 or 2% of the amount paid per | 16 | | kilowatthour by those customers during the year ending May | 17 | | 31, 2007; and
| 18 | | (5) thereafter, the amount of energy efficiency and | 19 | | demand-response measures implemented for any single year | 20 | | shall be reduced by an amount necessary to limit the | 21 | | estimated average net increase due to the cost of these | 22 | | measures included in the amounts paid by eligible retail | 23 | | customers in connection with electric service to no more | 24 | | than the greater of 2.015% of the amount paid per | 25 | | kilowatthour by those customers during the year ending May | 26 | | 31, 2007 or the incremental amount per kilowatthour paid |
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| 1 | | for these measures in 2011.
| 2 | | No later than June 30, 2011, the Commission shall review | 3 | | the limitation on the amount of energy efficiency and | 4 | | demand-response measures implemented pursuant to this Section | 5 | | and report to the General Assembly its findings as to whether | 6 | | that limitation unduly constrains the procurement of energy | 7 | | efficiency and demand-response measures. | 8 | | (e) Electric utilities shall be responsible for overseeing | 9 | | the design, development, and filing of energy efficiency and | 10 | | demand-response plans with the Commission. Electric utilities | 11 | | shall implement 100% of the demand-response measures in the | 12 | | plans. Electric utilities shall implement 75% of the energy | 13 | | efficiency measures approved by the Commission, and may, as | 14 | | part of that implementation, outsource various aspects of | 15 | | program development and implementation. The remaining 25% of | 16 | | those energy efficiency measures approved by the Commission | 17 | | shall be implemented by the Department of Commerce and Economic | 18 | | Opportunity, and must be designed in conjunction with the | 19 | | utility and the filing process. The Department may outsource | 20 | | development and implementation of energy efficiency measures. | 21 | | A minimum of 10% of the entire portfolio of cost-effective | 22 | | energy efficiency measures shall be procured from units of | 23 | | local government, municipal corporations, school districts, | 24 | | and community college districts. The Department shall | 25 | | coordinate the implementation of these measures. | 26 | | The apportionment of the dollars to cover the costs to |
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| 1 | | implement the Department's share of the portfolio of energy | 2 | | efficiency measures shall be made to the Department once the | 3 | | Department has executed rebate agreements, grants, or | 4 | | contracts for energy efficiency measures and provided | 5 | | supporting documentation for those rebate agreements, grants, | 6 | | and contracts to the utility. The Department is authorized to | 7 | | adopt any rules necessary and prescribe procedures in order to | 8 | | ensure compliance by applicants in carrying out the purposes of | 9 | | rebate agreements for energy efficiency measures implemented | 10 | | by the Department made under this Section. | 11 | | The details of the measures implemented by the Department | 12 | | shall be submitted by the Department to the Commission in | 13 | | connection with the utility's filing regarding the energy | 14 | | efficiency and demand-response measures that the utility | 15 | | implements. | 16 | | A utility providing approved energy efficiency and | 17 | | demand-response measures in the State shall be permitted to | 18 | | recover costs of those measures through an automatic adjustment | 19 | | clause tariff filed with and approved by the Commission. The | 20 | | tariff shall be established outside the context of a general | 21 | | rate case. Each year the Commission shall initiate a review to | 22 | | reconcile any amounts collected with the actual costs and to | 23 | | determine the required adjustment to the annual tariff factor | 24 | | to match annual expenditures. | 25 | | Each utility shall include, in its recovery of costs, the | 26 | | costs estimated for both the utility's and the Department's |
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| 1 | | implementation of energy efficiency and demand-response | 2 | | measures. Costs collected by the utility for measures | 3 | | implemented by the Department shall be submitted to the | 4 | | Department pursuant to Section 605-323 of the Civil | 5 | | Administrative Code of Illinois, shall be deposited into the | 6 | | Energy Efficiency Portfolio Standards Fund, and shall be used | 7 | | by the Department solely for the purpose of implementing these | 8 | | measures. A utility shall not be required to advance any moneys | 9 | | to the Department but only to forward such funds as it has | 10 | | collected. The Department shall report to the Commission on an | 11 | | annual basis regarding the costs actually incurred by the | 12 | | Department in the implementation of the measures. Any changes | 13 | | to the costs of energy efficiency measures as a result of plan | 14 | | modifications shall be appropriately reflected in amounts | 15 | | recovered by the utility and turned over to the Department. | 16 | | The portfolio of measures, administered by both the | 17 | | utilities and the Department, shall, in combination, be | 18 | | designed to achieve the annual savings targets described in | 19 | | subsections (b) and (c) of this Section, as modified by | 20 | | subsection (d) of this Section. | 21 | | The utility and the Department shall agree upon a | 22 | | reasonable portfolio of measures and determine the measurable | 23 | | corresponding percentage of the savings goals associated with | 24 | | measures implemented by the utility or Department. | 25 | | No utility shall be assessed a penalty under subsection (f) | 26 | | of this Section for failure to make a timely filing if that |
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| 1 | | failure is the result of a lack of agreement with the | 2 | | Department with respect to the allocation of responsibilities | 3 | | or related costs or target assignments. In that case, the | 4 | | Department and the utility shall file their respective plans | 5 | | with the Commission and the Commission shall determine an | 6 | | appropriate division of measures and programs that meets the | 7 | | requirements of this Section. | 8 | | If the Department is unable to meet incremental annual | 9 | | performance goals for the portion of the portfolio implemented | 10 | | by the Department, then the utility and the Department shall | 11 | | jointly submit a modified filing to the Commission explaining | 12 | | the performance shortfall and recommending an appropriate | 13 | | course going forward, including any program modifications that | 14 | | may be appropriate in light of the evaluations conducted under | 15 | | item (7) of subsection (f) of this Section. In this case, the | 16 | | utility obligation to collect the Department's costs and turn | 17 | | over those funds to the Department under this subsection (e) | 18 | | shall continue only if the Commission approves the | 19 | | modifications to the plan proposed by the Department. | 20 | | (f) No later than November 15, 2007, each electric utility | 21 | | shall file an energy efficiency and demand-response plan with | 22 | | the Commission to meet the energy efficiency and | 23 | | demand-response standards for 2008 through 2010. No later than | 24 | | October 1, 2010, each electric utility shall file an energy | 25 | | efficiency and demand-response plan with the Commission to meet | 26 | | the energy efficiency and demand-response standards for 2011 |
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| 1 | | through 2013. Every 3 years thereafter, each electric utility | 2 | | shall file, no later than September 1, an energy efficiency and | 3 | | demand-response plan with the Commission. If a utility does not | 4 | | file such a plan by September 1 of an applicable year, it shall | 5 | | face a penalty of $100,000 per day until the plan is filed. | 6 | | Each utility's plan shall set forth the utility's proposals to | 7 | | meet the utility's portion of the energy efficiency standards | 8 | | identified in subsection (b) and the demand-response standards | 9 | | identified in subsection (c) of this Section as modified by | 10 | | subsections (d) and (e), taking into account the unique | 11 | | circumstances of the utility's service territory. The | 12 | | Commission shall seek public comment on the utility's plan and | 13 | | shall issue an order approving or disapproving each plan within | 14 | | 5 months after its submission. If the Commission disapproves a | 15 | | plan, the Commission shall, within 30 days, describe in detail | 16 | | the reasons for the disapproval and describe a path by which | 17 | | the utility may file a revised draft of the plan to address the | 18 | | Commission's concerns satisfactorily. If the utility does not | 19 | | refile with the Commission within 60 days, the utility shall be | 20 | | subject to penalties at a rate of $100,000 per day until the | 21 | | plan is filed. This process shall continue, and penalties shall | 22 | | accrue, until the utility has successfully filed a portfolio of | 23 | | energy efficiency and demand-response measures. Penalties | 24 | | shall be deposited into the Energy Efficiency Trust Fund. In | 25 | | submitting proposed energy efficiency and demand-response | 26 | | plans and funding levels to meet the savings goals adopted by |
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| 1 | | this Act the utility shall: | 2 | | (1) Demonstrate that its proposed energy efficiency | 3 | | and demand-response measures will achieve the requirements | 4 | | that are identified in subsections (b) and (c) of this | 5 | | Section, as modified by subsections (d) and (e). | 6 | | (2) Present specific proposals to implement new | 7 | | building and appliance standards that have been placed into | 8 | | effect. | 9 | | (2.1) Include cost-effective heating and cooling | 10 | | equipment capable of achieving an Energy Efficiency Rating | 11 | | of at least 16.1 as calculated and determined by the most | 12 | | recent Air-Conditioning, Heating, and Refrigeration | 13 | | Institute certified ratings and listed in the Energy Star | 14 | | program of the United States Environmental Protection | 15 | | Agency. | 16 | | (3) Present estimates of the total amount paid for | 17 | | electric service expressed on a per kilowatthour basis | 18 | | associated with the proposed portfolio of measures | 19 | | designed to meet the requirements that are identified in | 20 | | subsections (b) and (c) of this Section, as modified by | 21 | | subsections (d) and (e). | 22 | | (4) Coordinate with the Department to present a | 23 | | portfolio of energy efficiency measures proportionate to | 24 | | the share of total annual utility revenues in Illinois from | 25 | | households at or below 150% of the poverty level. The | 26 | | energy efficiency programs shall be targeted to households |
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| 1 | | with incomes at or below 80% of area median income. | 2 | | (5) Demonstrate that its overall portfolio of energy | 3 | | efficiency and demand-response measures, not including | 4 | | programs covered by item (4) of this subsection (f), are | 5 | | cost-effective using the total resource cost test and | 6 | | represent a diverse cross-section of opportunities for | 7 | | customers of all rate classes to participate in the | 8 | | programs. | 9 | | (6) Include a proposed cost-recovery tariff mechanism | 10 | | to fund the proposed energy efficiency and demand-response | 11 | | measures and to ensure the recovery of the prudently and | 12 | | reasonably incurred costs of Commission-approved programs. | 13 | | (7) Provide for an annual independent evaluation of the | 14 | | performance of the cost-effectiveness of the utility's | 15 | | portfolio of measures and the Department's portfolio of | 16 | | measures, as well as a full review of the 3-year results of | 17 | | the broader net program impacts and, to the extent | 18 | | practical, for adjustment of the measures on a | 19 | | going-forward basis as a result of the evaluations. The | 20 | | resources dedicated to evaluation shall not exceed 3% of | 21 | | portfolio resources in any given year. | 22 | | (g) No more than 3% of energy efficiency and | 23 | | demand-response program revenue may be allocated for | 24 | | demonstration of breakthrough equipment and devices. | 25 | | (h) This Section does not apply to an electric utility that | 26 | | on December 31, 2005 provided electric service to fewer than |
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| 1 | | 100,000 customers in Illinois. | 2 | | (i) If, after 2 years, an electric utility fails to meet | 3 | | the efficiency standard specified in subsection (b) of this | 4 | | Section, as modified by subsections (d) and (e), it shall make | 5 | | a contribution to the Low-Income Home Energy Assistance | 6 | | Program. The combined total liability for failure to meet the | 7 | | goal shall be $1,000,000, which shall be assessed as follows: a | 8 | | large electric utility shall pay $665,000, and a medium | 9 | | electric utility shall pay $335,000. If, after 3 years, an | 10 | | electric utility fails to meet the efficiency standard | 11 | | specified in subsection (b) of this Section, as modified by | 12 | | subsections (d) and (e), it shall make a contribution to the | 13 | | Low-Income Home Energy Assistance Program. The combined total | 14 | | liability for failure to meet the goal shall be $1,000,000, | 15 | | which shall be assessed as follows: a large electric utility | 16 | | shall pay $665,000, and a medium electric utility shall pay | 17 | | $335,000. In addition, the responsibility for implementing the | 18 | | energy efficiency measures of the utility making the payment | 19 | | shall be transferred to the Illinois Power Agency if, after 3 | 20 | | years, or in any subsequent 3-year period, the utility fails to | 21 | | meet the efficiency standard specified in subsection (b) of | 22 | | this Section, as modified by subsections (d) and (e). The | 23 | | Agency shall implement a competitive procurement program to | 24 | | procure resources necessary to meet the standards specified in | 25 | | this Section as modified by subsections (d) and (e), with costs | 26 | | for those resources to be recovered in the same manner as |
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| 1 | | products purchased through the procurement plan as provided in | 2 | | Section 16-111.5. The Director shall implement this | 3 | | requirement in connection with the procurement plan as provided | 4 | | in Section 16-111.5. | 5 | | For purposes of this Section, (i) a "large electric | 6 | | utility" is an electric utility that, on December 31, 2005, | 7 | | served more than 2,000,000 electric customers in Illinois; (ii) | 8 | | a "medium electric utility" is an electric utility that, on | 9 | | December 31, 2005, served 2,000,000 or fewer but more than | 10 | | 100,000 electric customers in Illinois; and (iii) Illinois | 11 | | electric utilities that are affiliated by virtue of a common | 12 | | parent company are considered a single electric utility. | 13 | | (j) If, after 3 years, or any subsequent 3-year period, the | 14 | | Department fails to implement the Department's share of energy | 15 | | efficiency measures required by the standards in subsection | 16 | | (b), then the Illinois Power Agency may assume responsibility | 17 | | for and control of the Department's share of the required | 18 | | energy efficiency measures. The Agency shall implement a | 19 | | competitive procurement program to procure resources necessary | 20 | | to meet the standards specified in this Section, with the costs | 21 | | of these resources to be recovered in the same manner as | 22 | | provided for the Department in this Section.
| 23 | | (k) No electric utility shall be deemed to have failed to | 24 | | meet the energy efficiency standards to the extent any such | 25 | | failure is due to a failure of the Department or the Agency.
| 26 | | (Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; |
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| 1 | | 96-1000, eff. 7-2-10; 97-616, eff. 10-26-11; 97-841, eff. | 2 | | 7-20-12.)
| 3 | | (220 ILCS 5/8-104)
| 4 | | Sec. 8-104. Natural gas energy efficiency programs. | 5 | | (a) It is the policy of the State that natural gas | 6 | | utilities and the Department of Commerce and Economic | 7 | | Opportunity are required to use cost-effective energy | 8 | | efficiency to reduce direct and indirect costs to consumers. It | 9 | | serves the public interest to allow natural gas utilities to | 10 | | recover costs for reasonably and prudently incurred expenses | 11 | | for cost-effective energy efficiency measures. | 12 | | (b) For purposes of this Section, "energy efficiency" means | 13 | | measures that reduce the amount of energy required to achieve a | 14 | | given end use . "Energy efficiency" also includes measures that | 15 | | reduce the total Btus of electricity and natural gas needed to | 16 | | meet the end use or uses. "Cost-effective" and "cost-effective" | 17 | | means that the measures satisfy the total resource cost test | 18 | | which, for purposes of this Section, means a standard that is | 19 | | met if, for an investment in energy efficiency, the | 20 | | benefit-cost ratio is greater than one. The benefit-cost ratio | 21 | | is the ratio of the net present value of the total benefits of | 22 | | the measures to the net present value of the total costs as | 23 | | calculated over the lifetime of the measures. The total | 24 | | resource cost test compares the sum of avoided natural gas | 25 | | utility costs, representing the benefits that accrue to the |
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| 1 | | system and the participant in the delivery of those efficiency | 2 | | measures, as well as other quantifiable societal benefits, | 3 | | including avoided electric utility costs, to the sum of all | 4 | | incremental costs of end use measures (including both utility | 5 | | and participant contributions), plus costs to administer, | 6 | | deliver, and evaluate each demand-side measure, to quantify the | 7 | | net savings obtained by substituting demand-side measures for | 8 | | supply resources. In calculating avoided costs, reasonable | 9 | | estimates shall be included for financial costs likely to be | 10 | | imposed by future regulation of emissions of greenhouse gases. | 11 | | The low-income programs described in item (4) of subsection (f) | 12 | | of this Section shall not be required to meet the total | 13 | | resource cost test. | 14 | | (c) Natural gas utilities shall implement cost-effective | 15 | | energy efficiency measures to meet at least the following | 16 | | natural gas savings requirements, which shall be based upon the | 17 | | total amount of gas delivered to retail customers, other than | 18 | | the customers described in subsection (m) of this Section, | 19 | | during calendar year 2009 multiplied by the applicable | 20 | | percentage. Natural gas utilities may comply with this Section | 21 | | by meeting the annual incremental savings goal in the | 22 | | applicable year or by showing that total savings associated | 23 | | with measures implemented after May 31, 2011 were equal to the | 24 | | sum of each annual incremental savings requirement from May 31, | 25 | | 2011 through the end of the applicable year: | 26 | | (1) 0.2% by May 31, 2012; |
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| 1 | | (2) an additional 0.4% by May 31, 2013, increasing | 2 | | total savings to .6%; | 3 | | (3) an additional 0.6% by May 31, 2014, increasing | 4 | | total savings to 1.2%; | 5 | | (4) an additional 0.8% by May 31, 2015, increasing | 6 | | total savings to 2.0%; | 7 | | (5) an additional 1% by May 31, 2016, increasing total | 8 | | savings to 3.0%; | 9 | | (6) an additional 1.2% by May 31, 2017, increasing | 10 | | total savings to 4.2%; | 11 | | (7) an additional 1.4% by May 31, 2018, increasing | 12 | | total savings to 5.6%; | 13 | | (8) an additional 1.5% by May 31, 2019, increasing | 14 | | total savings to 7.1%; and | 15 | | (9) an additional 1.5% in each 12-month period | 16 | | thereafter. | 17 | | (d) Notwithstanding the requirements of subsection (c) of | 18 | | this Section, a natural gas utility shall limit the amount of | 19 | | energy efficiency implemented in any 3-year reporting period | 20 | | established by subsection (f) of Section 8-104 of this Act, by | 21 | | an amount necessary to limit the estimated average increase in | 22 | | the amounts paid by retail customers in connection with natural | 23 | | gas service to no more than 2% in the applicable 3-year | 24 | | reporting period. The energy savings requirements in | 25 | | subsection (c) of this Section may be reduced by the Commission | 26 | | for the subject plan, if the utility demonstrates by |
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| 1 | | substantial evidence that it is highly unlikely that the | 2 | | requirements could be achieved without exceeding the | 3 | | applicable spending limits in any 3-year reporting period. No | 4 | | later than September 1, 2013, the Commission shall review the | 5 | | limitation on the amount of energy efficiency measures | 6 | | implemented pursuant to this Section and report to the General | 7 | | Assembly, in the report required by subsection (k) of this | 8 | | Section, its findings as to whether that limitation unduly | 9 | | constrains the procurement of energy efficiency measures. | 10 | | (e) Natural gas utilities shall be responsible for | 11 | | overseeing the design, development, and filing of their | 12 | | efficiency plans with the Commission. The utility shall utilize | 13 | | 75% of the available funding associated with energy efficiency | 14 | | programs approved by the Commission, and may outsource various | 15 | | aspects of program development and implementation. The | 16 | | remaining 25% of available funding shall be used by the | 17 | | Department of Commerce and Economic Opportunity to implement | 18 | | energy efficiency measures that achieve no less than 20% of the | 19 | | requirements of subsection (c) of this Section. Such measures | 20 | | shall be designed in conjunction with the utility and approved | 21 | | by the Commission. The Department may outsource development and | 22 | | implementation of energy efficiency measures. A minimum of 10% | 23 | | of the entire portfolio of cost-effective energy efficiency | 24 | | measures shall be procured from local government, municipal | 25 | | corporations, school districts, and community college | 26 | | districts. Five percent of the entire portfolio of |
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| 1 | | cost-effective energy efficiency measures may be granted to | 2 | | local government and municipal corporations for market | 3 | | transformation initiatives. The Department shall coordinate | 4 | | the implementation of these measures and shall integrate | 5 | | delivery of natural gas efficiency programs with electric | 6 | | efficiency programs delivered pursuant to Section 8-103 of this | 7 | | Act, unless the Department can show that integration is not | 8 | | feasible. | 9 | | The apportionment of the dollars to cover the costs to | 10 | | implement the Department's share of the portfolio of energy | 11 | | efficiency measures shall be made to the Department once the | 12 | | Department has executed rebate agreements, grants, or | 13 | | contracts for energy efficiency measures and provided | 14 | | supporting documentation for those rebate agreements, grants, | 15 | | and contracts to the utility. The Department is authorized to | 16 | | adopt any rules necessary and prescribe procedures in order to | 17 | | ensure compliance by applicants in carrying out the purposes of | 18 | | rebate agreements for energy efficiency measures implemented | 19 | | by the Department made under this Section. | 20 | | The details of the measures implemented by the Department | 21 | | shall be submitted by the Department to the Commission in | 22 | | connection with the utility's filing regarding the energy | 23 | | efficiency measures that the utility implements. | 24 | | A utility providing approved energy efficiency measures in | 25 | | this State shall be permitted to recover costs of those | 26 | | measures through an automatic adjustment clause tariff filed |
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| 1 | | with and approved by the Commission. The tariff shall be | 2 | | established outside the context of a general rate case and | 3 | | shall be applicable to the utility's customers other than the | 4 | | customers described in subsection (m) of this Section. Each | 5 | | year the Commission shall initiate a review to reconcile any | 6 | | amounts collected with the actual costs and to determine the | 7 | | required adjustment to the annual tariff factor to match annual | 8 | | expenditures. | 9 | | Each utility shall include, in its recovery of costs, the | 10 | | costs estimated for both the utility's and the Department's | 11 | | implementation of energy efficiency measures. Costs collected | 12 | | by the utility for measures implemented by the Department shall | 13 | | be submitted to the Department pursuant to Section 605-323 of | 14 | | the Civil Administrative Code of Illinois, shall be deposited | 15 | | into the Energy Efficiency Portfolio Standards Fund, and shall | 16 | | be used by the Department solely for the purpose of | 17 | | implementing these measures. A utility shall not be required to | 18 | | advance any moneys to the Department but only to forward such | 19 | | funds as it has collected. The Department shall report to the | 20 | | Commission on an annual basis regarding the costs actually | 21 | | incurred by the Department in the implementation of the | 22 | | measures. Any changes to the costs of energy efficiency | 23 | | measures as a result of plan modifications shall be | 24 | | appropriately reflected in amounts recovered by the utility and | 25 | | turned over to the Department. | 26 | | The portfolio of measures, administered by both the |
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| 1 | | utilities and the Department, shall, in combination, be | 2 | | designed to achieve the annual energy savings requirements set | 3 | | forth in subsection (c) of this Section, as modified by | 4 | | subsection (d) of this Section. | 5 | | The utility and the Department shall agree upon a | 6 | | reasonable portfolio of measures and determine the measurable | 7 | | corresponding percentage of the savings goals associated with | 8 | | measures implemented by the Department. | 9 | | No utility shall be assessed a penalty under subsection (f) | 10 | | of this Section for failure to make a timely filing if that | 11 | | failure is the result of a lack of agreement with the | 12 | | Department with respect to the allocation of responsibilities | 13 | | or related costs or target assignments. In that case, the | 14 | | Department and the utility shall file their respective plans | 15 | | with the Commission and the Commission shall determine an | 16 | | appropriate division of measures and programs that meets the | 17 | | requirements of this Section. | 18 | | If the Department is unable to meet performance | 19 | | requirements for the portion of the portfolio implemented by | 20 | | the Department, then the utility and the Department shall | 21 | | jointly submit a modified filing to the Commission explaining | 22 | | the performance shortfall and recommending an appropriate | 23 | | course going forward, including any program modifications that | 24 | | may be appropriate in light of the evaluations conducted under | 25 | | item (8) of subsection (f) of this Section. In this case, the | 26 | | utility obligation to collect the Department's costs and turn |
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| 1 | | over those funds to the Department under this subsection (e) | 2 | | shall continue only if the Commission approves the | 3 | | modifications to the plan proposed by the Department. | 4 | | (f) No later than October 1, 2010, each gas utility shall | 5 | | file an energy efficiency plan with the Commission to meet the | 6 | | energy efficiency standards through May 31, 2014. Every 3 years | 7 | | thereafter, each utility shall file, no later than October 1, | 8 | | an energy efficiency plan with the Commission. If a utility | 9 | | does not file such a plan by October 1 of the applicable year, | 10 | | then it shall face a penalty of $100,000 per day until the plan | 11 | | is filed. Each utility's plan shall set forth the utility's | 12 | | proposals to meet the utility's portion of the energy | 13 | | efficiency standards identified in subsection (c) of this | 14 | | Section, as modified by subsection (d) of this Section, taking | 15 | | into account the unique circumstances of the utility's service | 16 | | territory. The Commission shall seek public comment on the | 17 | | utility's plan and shall issue an order approving or | 18 | | disapproving each plan. If the Commission disapproves a plan, | 19 | | the Commission shall, within 30 days, describe in detail the | 20 | | reasons for the disapproval and describe a path by which the | 21 | | utility may file a revised draft of the plan to address the | 22 | | Commission's concerns satisfactorily. If the utility does not | 23 | | refile with the Commission within 60 days after the | 24 | | disapproval, the utility shall be subject to penalties at a | 25 | | rate of $100,000 per day until the plan is filed. This process | 26 | | shall continue, and penalties shall accrue, until the utility |
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| 1 | | has successfully filed a portfolio of energy efficiency | 2 | | measures. Penalties shall be deposited into the Energy | 3 | | Efficiency Trust Fund and the cost of any such penalties may | 4 | | not be recovered from ratepayers. In submitting proposed energy | 5 | | efficiency plans and funding levels to meet the savings goals | 6 | | adopted by this Act the utility shall: | 7 | | (1) Demonstrate that its proposed energy efficiency | 8 | | measures will achieve the requirements that are identified | 9 | | in subsection (c) of this Section, as modified by | 10 | | subsection (d) of this Section. | 11 | | (2) Present specific proposals to implement new | 12 | | building and appliance standards that have been placed into | 13 | | effect. | 14 | | (3) Present estimates of the total amount paid for gas | 15 | | service expressed on a per therm basis associated with the | 16 | | proposed portfolio of measures designed to meet the | 17 | | requirements that are identified in subsection (c) of this | 18 | | Section, as modified by subsection (d) of this Section. | 19 | | (4) Coordinate with the Department to present a | 20 | | portfolio of energy efficiency measures proportionate to | 21 | | the share of total annual utility revenues in Illinois from | 22 | | households at or below 150% of the poverty level. Such | 23 | | programs shall be targeted to households with incomes at or | 24 | | below 80% of area median income. | 25 | | (5) Demonstrate that its overall portfolio of energy | 26 | | efficiency measures, not including programs covered by |
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| 1 | | item (4) of this subsection (f), are cost-effective using | 2 | | the total resource cost test and represent a diverse cross | 3 | | section of opportunities for customers of all rate classes | 4 | | to participate in the programs. | 5 | | (6) Demonstrate that a gas utility affiliated with an | 6 | | electric utility that is required to comply with Section | 7 | | 8-103 of this Act has integrated gas and electric | 8 | | efficiency measures into a single program that reduces | 9 | | program or participant costs and appropriately allocates | 10 | | costs to gas and electric ratepayers. The Department shall | 11 | | integrate all gas and electric programs it delivers in any | 12 | | such utilities' service territories, unless the Department | 13 | | can show that integration is not feasible or appropriate. | 14 | | (7) Include a proposed cost recovery tariff mechanism | 15 | | to fund the proposed energy efficiency measures and to | 16 | | ensure the recovery of the prudently and reasonably | 17 | | incurred costs of Commission-approved programs. | 18 | | (8) Provide for quarterly status reports tracking | 19 | | implementation of and expenditures for the utility's | 20 | | portfolio of measures and the Department's portfolio of | 21 | | measures, an annual independent review, and a full | 22 | | independent evaluation of the 3-year results of the | 23 | | performance and the cost-effectiveness of the utility's | 24 | | and Department's portfolios of measures and broader net | 25 | | program impacts and, to the extent practical, for | 26 | | adjustment of the measures on a going forward basis as a |
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| 1 | | result of the evaluations. The resources dedicated to | 2 | | evaluation shall not exceed 3% of portfolio resources in | 3 | | any given 3-year period. | 4 | | (g) No more than 3% of expenditures on energy efficiency | 5 | | measures may be allocated for demonstration of breakthrough | 6 | | equipment and devices. | 7 | | (h) Illinois natural gas utilities that are affiliated by | 8 | | virtue of a common parent company may, at the utilities' | 9 | | request, be considered a single natural gas utility for | 10 | | purposes of complying with this Section. | 11 | | (i) If, after 3 years, a gas utility fails to meet the | 12 | | efficiency standard specified in subsection (c) of this Section | 13 | | as modified by subsection (d), then it shall make a | 14 | | contribution to the Low-Income Home Energy Assistance Program. | 15 | | The total liability for failure to meet the goal shall be | 16 | | assessed as follows: | 17 | | (1) a large gas utility shall pay $600,000; | 18 | | (2) a medium gas utility shall pay $400,000; and | 19 | | (3) a small gas utility shall pay $200,000. | 20 | | For purposes of this Section, (i) a "large gas utility" is | 21 | | a gas utility that on December 31, 2008, served more than | 22 | | 1,500,000 gas customers in Illinois; (ii) a "medium gas | 23 | | utility" is a gas utility that on December 31, 2008, served | 24 | | fewer than 1,500,000, but more than 500,000 gas customers in | 25 | | Illinois; and (iii) a "small gas utility" is a gas utility that | 26 | | on December 31, 2008, served fewer than 500,000 and more than |
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| 1 | | 100,000 gas customers in Illinois. The costs of this | 2 | | contribution may not be recovered from ratepayers. | 3 | | If a gas utility fails to meet the efficiency standard | 4 | | specified in subsection (c) of this Section, as modified by | 5 | | subsection (d) of this Section, in any 2 consecutive 3-year | 6 | | planning periods, then the responsibility for implementing the | 7 | | utility's energy efficiency measures shall be transferred to an | 8 | | independent program administrator selected by the Commission. | 9 | | Reasonable and prudent costs incurred by the independent | 10 | | program administrator to meet the efficiency standard | 11 | | specified in subsection (c) of this Section, as modified by | 12 | | subsection (d) of this Section, may be recovered from the | 13 | | customers of the affected gas utilities, other than customers | 14 | | described in subsection (m) of this Section. The utility shall | 15 | | provide the independent program administrator with all | 16 | | information and assistance necessary to perform the program | 17 | | administrator's duties including but not limited to customer, | 18 | | account, and energy usage data, and shall allow the program | 19 | | administrator to include inserts in customer bills. The utility | 20 | | may recover reasonable costs associated with any such | 21 | | assistance. | 22 | | (j) No utility shall be deemed to have failed to meet the | 23 | | energy efficiency standards to the extent any such failure is | 24 | | due to a failure of the Department. | 25 | | (k) Not later than January 1, 2012, the Commission shall | 26 | | develop and solicit public comment on a plan to foster |
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| 1 | | statewide coordination and consistency between statutorily | 2 | | mandated natural gas and electric energy efficiency programs to | 3 | | reduce program or participant costs or to improve program | 4 | | performance. Not later than September 1, 2013, the Commission | 5 | | shall issue a report to the General Assembly containing its | 6 | | findings and recommendations. | 7 | | (l) This Section does not apply to a gas utility that on | 8 | | January 1, 2009, provided gas service to fewer than 100,000 | 9 | | customers in Illinois. | 10 | | (m) Subsections (a) through (k) of this Section do not | 11 | | apply to customers of a natural gas utility that have a North | 12 | | American Industry Classification System code number that is | 13 | | 22111 or any such code number beginning with the digits 31, 32, | 14 | | or 33 and (i) annual usage in the aggregate of 4 million therms | 15 | | or more within the service territory of the affected gas | 16 | | utility or with aggregate usage of 8 million therms or more in | 17 | | this State and complying with the provisions of item (l) of | 18 | | this subsection (m); or (ii) using natural gas as feedstock and | 19 | | meeting the usage requirements described in item (i) of this | 20 | | subsection (m), to the extent such annual feedstock usage is | 21 | | greater than 60% of the customer's total annual usage of | 22 | | natural gas. | 23 | | (1) Customers described in this subsection (m) of this | 24 | | Section shall apply, on a form approved on or before | 25 | | October 1, 2009 by the Department, to the Department to be | 26 | | designated as a self-directing customer ("SDC") or as an |
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| 1 | | exempt customer using natural gas as a feedstock from which | 2 | | other products are made, including, but not limited to, | 3 | | feedstock for a hydrogen plant, on or before the 1st day of | 4 | | February, 2010. Thereafter, application may be made not | 5 | | less than 6 months before the filing date of the gas | 6 | | utility energy efficiency plan described in subsection (f) | 7 | | of this Section; however, a new customer that commences | 8 | | taking service from a natural gas utility after February 1, | 9 | | 2010 may apply to become a SDC or exempt customer up to 30 | 10 | | days after beginning service. Such application shall | 11 | | contain the following: | 12 | | (A) the customer's certification that, at the time | 13 | | of its application, it qualifies to be a SDC or exempt | 14 | | customer described in this subsection (m) of this | 15 | | Section; | 16 | | (B) in the case of a SDC, the customer's | 17 | | certification that it has established or will | 18 | | establish by the beginning of the utility's 3-year | 19 | | planning period commencing subsequent to the | 20 | | application, and will maintain for accounting | 21 | | purposes, an energy efficiency reserve account and | 22 | | that the customer will accrue funds in said account to | 23 | | be held for the purpose of funding, in whole or in | 24 | | part, energy efficiency measures of the customer's | 25 | | choosing, which may include, but are not limited to, | 26 | | projects involving combined heat and power systems |
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| 1 | | that use the same energy source both for the generation | 2 | | of electrical or mechanical power and the production of | 3 | | steam or another form of useful thermal energy or the | 4 | | use of combustible gas produced from biomass, or both; | 5 | | (C) in the case of a SDC, the customer's | 6 | | certification that annual funding levels for the | 7 | | energy efficiency reserve account will be equal to 2% | 8 | | of the customer's cost of natural gas, composed of the | 9 | | customer's commodity cost and the delivery service | 10 | | charges paid to the gas utility, or $150,000, whichever | 11 | | is less; | 12 | | (D) in the case of a SDC, the customer's | 13 | | certification that the required reserve account | 14 | | balance will be capped at 3 years' worth of accruals | 15 | | and that the customer may, at its option, make further | 16 | | deposits to the account to the extent such deposit | 17 | | would increase the reserve account balance above the | 18 | | designated cap level; | 19 | | (E) in the case of a SDC, the customer's | 20 | | certification that by October 1 of each year, beginning | 21 | | no sooner than October 1, 2012, the customer will | 22 | | report to the Department information, for the 12-month | 23 | | period ending May 31 of the same year, on all deposits | 24 | | and reductions, if any, to the reserve account during | 25 | | the reporting year, and to the extent deposits to the | 26 | | reserve account in any year are in an amount less than |
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| 1 | | $150,000, the basis for such reduced deposits; reserve | 2 | | account balances by month; a description of energy | 3 | | efficiency measures undertaken by the customer and | 4 | | paid for in whole or in part with funds from the | 5 | | reserve account; an estimate of the energy saved, or to | 6 | | be saved, by the measure; and that the report shall | 7 | | include a verification by an officer or plant manager | 8 | | of the customer or by a registered professional | 9 | | engineer or certified energy efficiency trade | 10 | | professional that the funds withdrawn from the reserve | 11 | | account were used for the energy efficiency measures; | 12 | | (F) in the case of an exempt customer, the | 13 | | customer's certification of the level of gas usage as | 14 | | feedstock in the customer's operation in a typical year | 15 | | and that it will provide information establishing this | 16 | | level, upon request of the Department; | 17 | | (G) in the case of either an exempt customer or a | 18 | | SDC, the customer's certification that it has provided | 19 | | the gas utility or utilities serving the customer with | 20 | | a copy of the application as filed with the Department; | 21 | | (H) in the case of either an exempt customer or a | 22 | | SDC, certification of the natural gas utility or | 23 | | utilities serving the customer in Illinois including | 24 | | the natural gas utility accounts that are the subject | 25 | | of the application; and | 26 | | (I) in the case of either an exempt customer or a |
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| 1 | | SDC, a verification signed by a plant manager or an | 2 | | authorized corporate officer attesting to the | 3 | | truthfulness and accuracy of the information contained | 4 | | in the application. | 5 | | (2) The Department shall review the application to | 6 | | determine that it contains the information described in | 7 | | provisions (A) through (I) of item (1) of this subsection | 8 | | (m), as applicable. The review shall be completed within 30 | 9 | | days after the date the application is filed with the | 10 | | Department. Absent a determination by the Department | 11 | | within the 30-day period, the applicant shall be considered | 12 | | to be a SDC or exempt customer, as applicable, for all | 13 | | subsequent 3-year planning periods, as of the date of | 14 | | filing the application described in this subsection (m). If | 15 | | the Department determines that the application does not | 16 | | contain the applicable information described in provisions | 17 | | (A) through (I) of item (1) of this subsection (m), it | 18 | | shall notify the customer, in writing, of its determination | 19 | | that the application does not contain the required | 20 | | information and identify the information that is missing, | 21 | | and the customer shall provide the missing information | 22 | | within 15 working days after the date of receipt of the | 23 | | Department's notification. | 24 | | (3) The Department shall have the right to audit the | 25 | | information provided in the customer's application and | 26 | | annual reports to ensure continued compliance with the |
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| 1 | | requirements of this subsection. Based on the audit, if the | 2 | | Department determines the customer is no longer in | 3 | | compliance with the requirements of items (A) through (I) | 4 | | of item (1) of this subsection (m), as applicable, the | 5 | | Department shall notify the customer in writing of the | 6 | | noncompliance. The customer shall have 30 days to establish | 7 | | its compliance, and failing to do so, may have its status | 8 | | as a SDC or exempt customer revoked by the Department. The | 9 | | Department shall treat all information provided by any | 10 | | customer seeking SDC status or exemption from the | 11 | | provisions of this Section as strictly confidential. | 12 | | (4) Upon request, or on its own motion, the Commission | 13 | | may open an investigation, no more than once every 3 years | 14 | | and not before October 1, 2014, to evaluate the | 15 | | effectiveness of the self-directing program described in | 16 | | this subsection (m). | 17 | | (n) The applicability of this Section to customers | 18 | | described in subsection (m) of this Section is conditioned on | 19 | | the existence of the SDC program. In no event will any | 20 | | provision of this Section apply to such customers after January | 21 | | 1, 2020.
| 22 | | (Source: P.A. 96-33, eff. 7-10-09; 97-813, eff. 7-13-12; | 23 | | 97-841, eff. 7-20-12.)
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.".
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