Bill Amendment: IL HB0395 | 2019-2020 | 101st General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: GOVERNMENT-TECH

Status: 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB0395 Detail]

Download: Illinois-2019-HB0395-House_Amendment_001.html

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Rep. Yehiel M. Kalish

Filed: 5/18/2020

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AMENDMENT TO HOUSE BILL 395
AMENDMENT NO. ______. Amend House Bill 395 by replacing
everything after the enacting clause with the following:
"Section 1. Short title. This Act may be cited as the Water
Rate Review Commission Act.
Section 5. Legislative findings. The General Assembly
finds that:
(a) Water, wastewater, and storm water services in Illinois
are largely provided through various forms of public entities.
While private water service rate setting is regulated by the
Illinois Commerce Commission, rate setting for
publicly-delivered water services, including wastewater and
storm water services, is largely the province of units of local
government. This rate setting includes the establishment of
wholesale service rates between units of local government and
the establishment of retail service rates across different

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customer classes.
(b) Over the last decade water service rates have risen
faster than the rate of inflation or incomes, leading to
increasing concerns about water affordability. In addition,
rising costs have heightened the potential for unregulated
local governments to inappropriately employ monopoly power and
unequal water service rate setting.
(c) The water sector has established a number of rate
setting principles to help ensure that rates are set through an
equitable distribution of cost responsibilities and are in
conformance with established laws calling for "just,
reasonable, and non-discriminatory" rate setting. While
industry standard practices continue to evolve, these
principles are intended to serve as a benchmark for local
government rate setting practices.
(d) In light of the rising costs and the potential for
inequitable rate setting for water services, which are
essential for human life, regular and consistent review of
local government rate setting practices is warranted. Rather
than impose a new regulatory mandate or inappropriately expand
the purview of the Illinois Commerce Commission to units of
local government, it is reasonable to establish a Water Rate
Review Commission.
Section 10. Water Rate Review Commission.
(a) There is created the Water Rate Review Commission

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consisting of members representing State agencies and 5 members
appointed by the Governor.
(b) The members representing State agencies shall be:
(1) the Attorney General or his or her designee;
(2) the Director of Commerce and Economic Opportunity
or his or her designee;
(3) the Director of Natural Resources or his or her
designee; and
(4) the Director of the Environmental Protection
Agency or his or her designee.
(c) The Governor shall appoint 5 members as follows:
(1) one member representing units of local government
that provide water service;
(2) one member representing water service
affordability advocates;
(3) one member representing academicians with
expertise in public policy;
(4) one member who is a representative of an
environmental justice advocacy organization; and
(5) one member who is a representative of a consumer
advocacy organization.
Members appointed by the Governor shall serve a term of 5
years. Members may be reappointed to the Commission. In the
event of a vacancy, the Governor shall appoint a qualified
person to serve the remainder of the vacated term. The Governor
shall designate a member to serve as chairperson of the

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Commission.
(d) Subject to appropriation, the Department of Commerce
and Economic Opportunity shall provide administrative and
other necessary support to the Commission.
Section 15. Functions of the Commission.
(a) The Commission shall compile, review, and provide
guidance on rate and billing issues relating to
publicly-delivered water services. The guidance shall include
data, calculations, and cost allocation procedures necessary
to appropriately establish rates and charges by customer class.
In determining the guidance, the Commission shall consider the
following:
(1) the components of a water service bill;
(2) justifications for a change in rates;
(3) ranges of affordability throughout the State;
(4) practices that contribute to inappropriate rate
setting;
(5) the extent to which State or local policies
contribute to cost increases or variations in rate setting;
and
(6) challenges with respect to economically
disadvantaged communities in setting water service rates.
(b) The Commission shall provide guidance on customer
service practices to improve water service affordability and
access.

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(c) The Commission shall provide a non-binding mechanism to
review rate disputes between units of local government and
consumers.".