Bill Text: IL HB3101 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Creates the Building Energy Performance Standard Act. Provides that the purpose of the Illinois Building Energy Performance Standard is to decrease energy consumption, reduce greenhouse gas emissions from existing buildings, and increase economic growth and job creation. Provides that the Illinois Office of Energy shall establish a Building Energy Performance Standard Task Force to advise and provide technical assistance and recommendations relating to the Illinois Building Energy Performance Standard. Amends the Energy Efficient Building Act. Provides that the Capital Development Board, in consultation with the Department of Commerce and Economic Opportunity, shall create and adopt the Illinois Stretch Energy Code to allow municipalities and projects authorized or funded by the Board to achieve more energy efficiency in buildings than the Illinois Energy Conservation Code. Makes changes in provisions concerning definitions; applicability; enforcement; and home rule. Amends the Public Utilities Act. Provides that beginning in 2023, all gas distribution utilities in the State participating in certain energy efficiency programs shall achieve specified annual energy savings goals. Makes changes in provisions concerning energy efficiency and demand-response measures and qualified energy efficiency installers. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3101 Detail]

Download: Illinois-2021-HB3101-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB3101 Introduced , by Rep. Delia C. Ramirez SYNOPSIS AS INTRODUCED:
See Index
Creates the Building Energy Performance Standard Act. Provides that the purpose of the Illinois Building Energy Performance Standard is to decrease energy consumption, reduce greenhouse gas emissions from existing buildings, and increase economic growth and job creation. Provides that the Illinois Office of Energy shall establish a Building Energy Performance Standard Task Force to advise and provide technical assistance and recommendations relating to the Illinois Building Energy Performance Standard. Amends the Energy Efficient Building Act. Provides that the Capital Development Board, in consultation with the Department of Commerce and Economic Opportunity, shall create and adopt the Illinois Stretch Energy Code to allow municipalities and projects authorized or funded by the Board to achieve more energy efficiency in buildings than the Illinois Energy Conservation Code. Makes changes in provisions concerning definitions; applicability; enforcement; and home rule. Amends the Public Utilities Act. Provides that beginning in 2023, all gas distribution utilities in the State participating in certain energy efficiency programs shall achieve specified annual energy savings goals. Makes changes in provisions concerning energy efficiency and demand-response measures and qualified energy efficiency installers. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Building Energy Performance Standard Act.
Section 5. Findings. The General Assembly finds that:
(a) The growing clean energy economy in Illinois can be a
vehicle for expanding equitable access to public health,
safety, a cleaner environment, quality jobs, economic
opportunity, and wealth-building, particularly in economically
disadvantaged communities and communities of black,
indigenous, and people of color that have had to bear the
disproportionate burden of dirty fossil fuel pollution.
(b) Energy efficiency should form the basis of any robust
clean energy policy. It is the cheapest clean energy resource,
and efficiency upgrades help customers manage their energy
bills directly by reducing the energy they need, and
indirectly by holding demand and prices down statewide.
Section 10. Building Energy Performance Standard.
(a) The purpose of the Illinois Building Energy
Performance Standard is to decrease energy consumption, reduce
greenhouse gas emissions from existing buildings, and increase

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economic growth and job creation by:
(1) creating a Building Energy Performance Standard
through a stakeholder engagement process;
(2) implementing the Building Energy Performance
Standard for all state-owned buildings; and
(3) creating a uniform Building Energy Performance
Standard that may be adopted by local jurisdictions and
may be applicable to publicly owned buildings or privately
owned buildings, or both.
(b) Within 90 days after the effective date of this Act,
the Illinois Office of Energy shall establish a Building
Energy Performance Standard Task Force to advise and provide
technical assistance and recommendations for the Illinois
Building Energy Performance Standard, which shall:
(A) advise the Illinois Office of Energy on creation
of an implementation plan for the Building Energy
Performance Standard;
(B) recommend amendments to proposed regulations
issued by the Illinois Office of Energy;
(C) recommend complementary programs or policies; and
(D) complete its tasks within one year of enactment.
The Task Force shall be composed of representatives,
or their designees, from the following entities:
(i) the Director of the Illinois Environmental
Protection Agency;
(ii) the Director of the Capital Development Board;

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(iii) The Director of Central Management Services;
(iv) a minimum of one technical expert with extensive
knowledge of energy use in multiple existing commercial
building use types;
(v) a representative from the City of Chicago;
(vi) the Director of the Illinois Housing Development
Authority;
(vii) the Director of Commerce and Economic
Opportunity;
(viii) a representative from an environmental or
sustainability nonprofit organization;
(ix) a representative from each of the investor-owned
utilities in Illinois;
(x) a representative who is an affordable housing
advocate;
(xi) a representative from a market-rate multifamily
building;
(xii) a representative from a building owners and
managers association;
(xiii) a representative from a public university
system;
(xiv) a representative of a nonprofit or professional
association advocating for energy efficient buildings or a
low-carbon built environment;
(xvi) a representative of a business or entity that
provides energy efficiency or renewable energy services to

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large buildings or affordable housing in the State; and
(xvii) other experts or organizations deemed necessary
by the Illinois Office of Energy.
(c) In establishing specific performance standards and
processes, the Illinois Office of Energy shall:
(1) require all buildings owned by the State of
Illinois to comply with the Building Energy Performance
Standard. State-owned buildings shall meet the following
timeline for compliance with Building Energy Performance
Standard:
(A) buildings over 50,000 gross square feet shall
comply no later than January 1, 2024;
(B) buildings over 25,000 gross square feet shall
comply no later than January 1, 2026;
(C) buildings over 10,000 gross square feet shall
comply no later than January 1, 2028; and
(D) buildings below 10,000 gross square feet are
not required to comply.
(2) require the property type energy use targets
established by the Illinois Building Energy Performance
Standard to be the minimum energy efficiency requirements
for any jurisdiction adopting a building energy
performance standard;
(3) with input from the Building Energy Performance
Standard Task Force, establish property types and building
energy performance standards for each property type, or an

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equivalent metric for buildings that do not receive an
ENERGY STAR score, no later than January 1, 2023;
beginning every 5 years after January 1, 2023, the
Illinois Office of Energy shall review and assess the need
to update the energy performance standards for each
property type;
(4) establish reporting and data verification
requirements for buildings covered by Building Energy
Performance Standard, and establish requirements for
making reporting and data publicly available;
(5) establish that the Building Energy Performance
Standard for buildings that are eligible for an ENERGY
STAR score is no lower than the State median ENERGY STAR
score for buildings of each property type;
(6) establish penalty guidelines for buildings failing
to comply with the building energy performance
requirements; and
(7) if needed, establish exemption criteria, in
consultation with the Building Energy Performance Standard
Task Force, including:
(A) for qualifying affordable housing buildings to
delay compliance with the building energy performance
requirements for no more than 3 years if the owner
demonstrates, to the satisfaction of the Illinois
Office of Energy, financial distress, change of
ownership, vacancy, major renovation, pending

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demolition, or other acceptable circumstances as
determined by the State of Illinois; and
(B) for qualifying buildings to delay compliance
with the building energy performance requirements for
up to 3 years if the owner demonstrates, to the
satisfaction of the State of Illinois, financial
distress, change of ownership, vacancy, major
renovation, pending demolition, or other acceptable
circumstances determined by the State of Illinois.
(d) In establishing specific performance standards, the
Illinois Office of Energy may consider:
(1) the existence of any historic buildings and any
restrictions related to the treatment of historic
buildings;
(2) the diversity of building uses and requirements;
and
(3) the impact on zoning regulations.
(e) The Illinois Office of Energy shall, no later than
January 1, 2023, create, and make publicly available, a
strategic implementation plan for State-owned buildings
complying with the Illinois Building Energy Performance
Standard.
(f) The Illinois Office of Energy shall post the strategic
implementation plan on its website.
Section 90. The Energy Efficient Building Act is amended

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by changing Sections 10, 15, 20, 30, and 45 and by adding
Section 55 as follows:
(20 ILCS 3125/10)
Sec. 10. Definitions.
"Board" means the Capital Development Board.
"Building" includes both residential buildings and
commercial buildings.
"Code" means the latest published edition of the
International Code Council's International Energy Conservation
Code as adopted by the Board, including any published
supplements adopted by the Board and any amendments and
adaptations to the Code that are made by the Board.
"Commercial building" means any building except a building
that is a residential building, as defined in this Section.
"Department" means the Department of Commerce and Economic
Opportunity.
"Municipality" means any city, village, or incorporated
town.
"Residential building" means (i) a detached one-family or
2-family dwelling or (ii) any building that is 3 stories or
less in height above grade that contains multiple dwelling
units, in which the occupants reside on a primarily permanent
basis, such as a townhouse, a row house, an apartment house, a
convent, a monastery, a rectory, a fraternity or sorority
house, a dormitory, and a rooming house; provided, however,

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that when applied to a building located within the boundaries
of a municipality having a population of 1,000,000 or more,
the term "residential building" means a building containing
one or more dwelling units, not exceeding 4 stories above
grade, where occupants are primarily permanent.
"Site energy index" means a scalar published by the
Pacific Northwest National Laboratories representing the ratio
of the site energy performance of an evaluated code compared
to the site energy performance of the 2006 International
Energy Conservation Code. A site energy index includes only
conservation measures and excludes net energy credit for any
on-site or off-site energy production.
(Source: P.A. 101-144, eff. 7-26-19.)
(20 ILCS 3125/15)
Sec. 15. Energy Efficient Building Code. The Board, in
consultation with the Department, shall adopt the Code as
minimum requirements for commercial buildings, applying to the
construction of, renovations to, and additions to all
commercial buildings in the State. The Board, in consultation
with the Department, shall also adopt the Code as the minimum
and maximum requirements for residential buildings, applying
to the construction of, renovations to, and additions to all
residential buildings in the State, except as provided for in
Section 45 of this Act. The Board may appropriately adapt the
International Energy Conservation Code to apply to the

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particular economy, population distribution, geography, and
climate of the State and construction therein, consistent with
the public policy objectives of this Act.
(Source: P.A. 96-778, eff. 8-28-09.)
(20 ILCS 3125/20)
Sec. 20. Applicability.
(a) The Board shall review and adopt the Code within one
year after its publication. The Code shall take effect within
6 months after it is adopted by the Board, except that,
beginning January 1, 2012, the Code adopted in 2012 shall take
effect on January 1, 2013. Except as otherwise provided in
this Act, the Code shall apply to (i) any new building or
structure in this State for which a building permit
application is received by a municipality or county and (ii)
beginning on the effective date of this amendatory Act of the
100th General Assembly, each State facility specified in
Section 4.01 of the Capital Development Board Act. In the case
of any addition, alteration, renovation, or repair to an
existing residential or commercial structure, the Code adopted
under this Act applies only to the portions of that structure
that are being added, altered, renovated, or repaired. The
changes made to this Section by this amendatory Act of the 97th
General Assembly shall in no way invalidate or otherwise
affect contracts entered into on or before the effective date
of this amendatory Act of the 97th General Assembly.

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(b) The following buildings shall be exempt from the Code:
(1) Buildings otherwise exempt from the provisions of
a locally adopted building code and buildings that do not
contain a conditioned space.
(2) Buildings that do not use either electricity or
fossil fuel for comfort conditioning. For purposes of
determining whether this exemption applies, a building
will be presumed to be heated by electricity, even in the
absence of equipment used for electric comfort heating,
whenever the building is provided with electrical service
in excess of 100 amps, unless the code enforcement
official determines that this electrical service is
necessary for purposes other than providing electric
comfort heating.
(3) Historic buildings. This exemption shall apply to
those buildings that are listed on the National Register
of Historic Places or the Illinois Register of Historic
Places, and to those buildings that have been designated
as historically significant by a local governing body that
is authorized to make such designations.
(4) (Blank).
(5) Other buildings specified as exempt by the
International Energy Conservation Code.
(c) Additions, alterations, renovations, or repairs to an
existing building, building system, or portion thereof shall
conform to the provisions of the Code as they relate to new

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construction without requiring the unaltered portion of the
existing building or building system to comply with the Code.
The following need not comply with the Code, provided that the
energy use of the building is not increased: (i) storm windows
installed over existing fenestration, (ii) glass-only
replacements in an existing sash and frame, (iii) existing
ceiling, wall, or floor cavities exposed during construction,
provided that these cavities are filled with insulation, and
(iv) construction where the existing roof, wall, or floor is
not exposed.
(d) A unit of local government that does not regulate
energy efficient building standards is not required to adopt,
enforce, or administer the Code; however, any energy efficient
building standards adopted by a unit of local government must
comply with this Act. If a unit of local government does not
regulate energy efficient building standards, any
construction, renovation, or addition to buildings or
structures is subject to the provisions contained in this Act.
(Source: P.A. 100-729, eff. 8-3-18.)
(20 ILCS 3125/30)
Sec. 30. Enforcement. The Board, in consultation with the
Department, shall determine procedures for compliance with the
Code. These procedures may include but need not be limited to
certification by a national, State, or local accredited energy
conservation program or inspections from private

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Code-certified inspectors using the Code. For purposes of the
Illinois Stretch Energy Code under Section 55 of this Act, the
Board shall allow and encourage, as an alternative compliance
mechanism, project certification by a nationally recognized
nonprofit certification organization specializing in
high-performance passive buildings and offering
climate-specific building energy standards that require equal
or better energy performance than the Illinois Stretch Energy
Code.
(Source: P.A. 93-936, eff. 8-13-04.)
(20 ILCS 3125/45)
Sec. 45. Home rule.
(a) (Blank) No unit of local government, including any
home rule unit, may regulate energy efficient building
standards for commercial buildings in a manner that is less
stringent than the provisions contained in this Act.
(b) No unit of local government, including any home rule
unit, may regulate energy efficient building standards for
residential or commercial buildings in a manner that is either
less or more stringent than the standards established pursuant
to this Act; provided, however, that the following entities
may regulate energy efficient building standards for
residential or commercial buildings in a manner that is more
stringent than the provisions contained in this Act: (i) a
unit of local government, including a home rule unit, that

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has, on or before May 15, 2009, adopted or incorporated by
reference energy efficient building standards for residential
buildings that are equivalent to or more stringent than the
2006 International Energy Conservation Code, (ii) a unit of
local government, including a home rule unit, that has, on or
before May 15, 2009, provided to the Capital Development
Board, as required by Section 10.18 of the Capital Development
Board Act, an identification of an energy efficient building
code or amendment that is equivalent to or more stringent than
the 2006 International Energy Conservation Code, (iii) a
municipality that has adopted the Illinois Stretch Energy
Code, and (iv) (iii) a municipality with a population of
1,000,000 or more.
(c) No unit of local government, including any home rule
unit or unit of local government that is subject to State
regulation under the Code as provided in Section 15 of this
Act, may hereafter enact any annexation ordinance or
resolution, or require or enter into any annexation agreement,
that imposes energy efficient building standards for
residential or commercial buildings that are either less or
more stringent than the energy efficiency standards in effect,
at the time of construction, throughout the unit of local
government, except for the Illinois Stretch Energy Code.
(d) This Section is a denial and limitation of home rule
powers and functions under subsection (i) of Section 6 of
Article VII of the Illinois Constitution on the concurrent

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exercise by home rule units of powers and functions exercised
by the State. Nothing in this Section, however, prevents a
unit of local government from adopting an energy efficiency
code or standards for commercial buildings that are more
stringent than the Code under this Act.
(Source: P.A. 99-639, eff. 7-28-16.)
(20 ILCS 3125/55 new)
Sec. 55. Illinois Stretch Energy Code.
(a) The Board, in consultation with the Department, shall
create and adopt the Illinois Stretch Energy Code, to allow
municipalities and projects authorized or funded by the Board
to achieve more energy efficiency in buildings than the
Illinois Energy Conservation Code through a consistent pathway
across the State. The Illinois Stretch Energy Code shall be
available for adoption by any municipality and shall set
minimum energy efficiency requirements, taking the place of
the Illinois Energy Conservation Code within any municipality
that adopts the Illinois Stretch Energy Code.
(b) The Illinois Stretch Energy Code shall have separate
components for commercial and residential buildings, which may
be adopted by the municipality jointly or separately.
(c) The Illinois Stretch Energy Code shall apply to all
projects to which an energy conservation code is applicable
that are authorized or funded in any part by the Board after
January 1, 2023.

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(d) Development of the Illinois Stretch Energy Code shall
be completed and available for adoption by municipalities by
December 31, 2022.
(e) Consistent with the requirements under paragraph (2.5)
of subsection (g) of Section 8-103B of the Public Utilities
Act and under paragraph (2) of subsection (j) of Section
8-104.1 of the Public Utilities Act, municipalities that adopt
the Illinois Stretch Energy Code may use utility programs to
support compliance with the Illinois Stretch Energy Code. The
amount of savings from such utility efforts that may be
counted toward achievement of their cumulative persisting
annual savings goals shall be based on reasonable estimates of
the increase in savings resulting from the utility efforts,
relative to reasonable approximations of what would have
occurred absent the utility involvement.
(f) The Illinois Stretch Energy Code's residential
components shall:
(1) apply to residential buildings as defined under
Section 10;
(2) set performance targets using a site energy index
with reductions relative to the 2006 International Energy
Conservation Code; and
(3) include stretch energy codes with site energy
index standards and adoption dates as follows: by no later
than December 31, 2022, the Board shall create and adopt a
stretch energy code with a site energy index no greater

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than 0.50 of the 2006 International Energy Conservation
Code; by no later than December 31, 2025, the Board shall
create and adopt a stretch energy code with a site energy
index no greater than 0.40 of the 2006 International
Energy Conservation Code, unless the Board identifies
unanticipated burdens associated with the stretch energy
code adopted in 2022, in which case the Board may adopt a
stretch energy code with a site energy index no greater
than 0.42 of the 2006 International Energy Conservation
Code, provided that the more relaxed standard has a site
energy index that is at least 0.05 more restrictive than
the 2024 International Energy Conservation Code; by no
later than December 31, 2028, the Board shall create and
adopt a stretch energy code with a site energy index no
greater than 0.33 of the 2006 International Energy
Conservation Code, unless the Board identifies
unanticipated burdens associated with the stretch energy
code adopted in 2025, in which case the Board may adopt a
stretch energy code with a site energy index no greater
than 0.35 of the 2006 International Energy Conservation
Code, but only if that more relaxed standard has a site
energy index that is at least 0.05 more restrictive than
the 2027 International Energy Conservation Code; and by no
later than December 31, 2031, the Board shall create and
adopt a stretch energy code with a site energy index no
greater than 0.25 of the 2006 International Energy

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Conservation Code.
(g) The Illinois Stretch Energy Code's commercial
components shall:
(1) apply to commercial buildings as defined under
Section 10;
(2) set performance targets using a site energy index
with reductions relative to the 2006 International Energy
Conservation Code; and
(3) include stretch energy codes with site energy
index standards and adoption dates as follows: by no later
than December 31, 2022, the Board shall create and adopt a
stretch energy code with a site energy index no greater
than 0.60 of the 2006 International Energy Conservation
Code; by no later than December 31, 2025, the Board shall
create and adopt a stretch energy code with a site energy
index no greater than 0.50 of the 2006 International
Energy Conservation Code; by no later than December 31,
2028, the Board shall create and adopt a stretch energy
code with a site energy index no greater than 0.44 of the
2006 International Energy Conservation Code; and by no
later than December 31, 2031, the Board shall create and
adopt a stretch energy code with a site energy index no
greater than 0.39 of the 2006 International Energy
Conservation Code.
(h) The process for the creation of the Illinois Stretch
Energy Code includes:

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(1) within 60 days after the effective date of this
amendatory Act of the 102nd General Assembly, the Capital
Development Board shall establish an Illinois Stretch
Energy Code Task Force to advise and provide technical
assistance and recommendations to the Capital Development
Board for the Illinois Stretch Energy Code, which shall:
(A) advise the Capital Development Board on
creation of interim performance targets, code
requirements, and an implementation plan for the
Illinois Stretch Energy Code;
(B) recommend amendments to proposed rules issued
by the Capital Development Board;
(C) recommend complementary programs or policies;
(D) complete recommendations and development for
the Illinois Stretch Energy Code elements and
requirements by July 31, 2022;
(E) be composed of, but not limited to,
representatives, or their designees, from the
following entities:
(i) a representative from a group that
represents environmental justice;
(ii) a representative of a nonprofit or
professional association advocating for the
environment;
(iii) a representative of an organization
representing local governments in the metropolitan

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Chicago region;
(iv) a representative of the City of Chicago;
(v) a representative of an organization
representing local governments outside the
metropolitan Chicago region;
(vi) a representative for the investor-owned
utilities of Illinois;
(vii) an energy-efficiency advocate with
technical expertise in single-family residential
buildings;
(viii) an energy-efficiency advocate with
technical expertise in commercial buildings;
(ix) an energy-efficiency advocate with
technical expertise in multifamily buildings, such
as an affordable housing developer;
(x) a representative from the architecture or
engineering industry;
(xi) a representative from a home builders
association;
(xii) a representative from the commercial
building industry;
(xiii) a representative of the enforcement
industry, such as a code official or energy rater;
(xiv) a representative of organized labor; and
(xv) other experts or organizations deemed
necessary by the Capital Development Board; and

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(F) be co-chaired by:
(i) a representative of the environmental
community;
(ii) a representative of the environmental
justice community; and
(iii) a municipal representative.
(2) As part of its deliberations, the Illinois Stretch
Energy Code Task Force shall actively solicit input from
other energy code stakeholders and interested parties.
Section 95. The Public Utilities Act is amended by
changing Sections 8-103B and 16-128B and by adding Section
8-104.1 as follows:
(220 ILCS 5/8-103B)
Sec. 8-103B. Energy efficiency and demand-response
measures.
(a) It is the policy of the State that electric utilities
are required to use cost-effective energy efficiency and
demand-response measures to reduce delivery load. Requiring
investment in cost-effective energy efficiency and
demand-response measures will reduce direct and indirect costs
to consumers by decreasing environmental impacts and by
avoiding or delaying the need for new generation,
transmission, and distribution infrastructure. It serves the
public interest to allow electric utilities to recover costs

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for reasonably and prudently incurred expenditures for energy
efficiency and demand-response measures. As used in this
Section, "cost-effective" means that the measures satisfy the
total resource cost test. The low-income measures described in
subsection (c) of this Section shall not be required to meet
the total resource cost test. For purposes of this Section,
the terms "energy-efficiency", "demand-response", "electric
utility", and "total resource cost test" have the meanings set
forth in the Illinois Power Agency Act. "Black, indigenous,
and people of color" and "BIPOC" means people who are members
of the groups described in subparagraphs (a) through (e) of
paragraph (A) of subsection (1) of Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act.
(a-5) This Section applies to electric utilities serving
more than 500,000 retail customers in the State for those
multi-year plans commencing after December 31, 2017.
(b) For purposes of this Section, electric utilities
subject to this Section that serve more than 3,000,000 retail
customers in the State shall be deemed to have achieved a
cumulative persisting annual savings of 6.6% from energy
efficiency measures and programs implemented during the period
beginning January 1, 2012 and ending December 31, 2017, which
percent is based on the deemed average weather normalized
sales of electric power and energy during calendar years 2014,
2015, and 2016 of 88,000,000 MWhs. For the purposes of this

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subsection (b) and subsection (b-5), the 88,000,000 MWhs of
deemed electric power and energy sales shall be reduced by the
number of MWhs equal to the sum of the annual consumption of
customers that are exempt from subsections (a) through (j) of
this Section under subsection (l) of this Section, as averaged
across the calendar years 2014, 2015, and 2016. After 2017,
the deemed value of cumulative persisting annual savings from
energy efficiency measures and programs implemented during the
period beginning January 1, 2012 and ending December 31, 2017,
shall be reduced each year, as follows, and the applicable
value shall be applied to and count toward the utility's
achievement of the cumulative persisting annual savings goals
set forth in subsection (b-5):
(1) 5.8% deemed cumulative persisting annual savings
for the year ending December 31, 2018;
(2) 5.2% deemed cumulative persisting annual savings
for the year ending December 31, 2019;
(3) 4.5% deemed cumulative persisting annual savings
for the year ending December 31, 2020;
(4) 4.0% deemed cumulative persisting annual savings
for the year ending December 31, 2021;
(5) 3.5% deemed cumulative persisting annual savings
for the year ending December 31, 2022;
(6) 3.1% deemed cumulative persisting annual savings
for the year ending December 31, 2023;
(7) 2.8% deemed cumulative persisting annual savings

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for the year ending December 31, 2024;
(8) 2.5% deemed cumulative persisting annual savings
for the year ending December 31, 2025;
(9) 2.3% deemed cumulative persisting annual savings
for the year ending December 31, 2026;
(10) 2.1% deemed cumulative persisting annual savings
for the year ending December 31, 2027;
(11) 1.8% deemed cumulative persisting annual savings
for the year ending December 31, 2028;
(12) 1.7% deemed cumulative persisting annual savings
for the year ending December 31, 2029; and
(13) 1.5% deemed cumulative persisting annual savings
for the year ending December 31, 2030; .
(14) 1.3% deemed cumulative persisting annual savings
for the year ending December 31, 2031;
(15) 1.1% deemed cumulative persisting annual savings
for the year ending December 31, 2032;
(16) 0.9% deemed cumulative persisting annual savings
for the year ending December 31, 2033;
(17) 0.7% deemed cumulative persisting annual savings
for the year ending December 31, 2034;
(18) 0.5% deemed cumulative persisting annual savings
for the year ending December 31, 2035;
(19) 0.4% deemed cumulative persisting annual savings
for the year ending December 31, 2036;
(20) 0.3% deemed cumulative persisting annual savings

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for the year ending December 31, 2037;
(21) 0.2% deemed cumulative persisting annual savings
for the year ending December 31, 2038;
(22) 0.1% deemed cumulative persisting annual savings
for the year ending December 31, 2039; and
(23) 0.0% deemed cumulative persisting annual savings
for the year ending December 31, 2040 and all subsequent
years.
For purposes of this Section, "cumulative persisting
annual savings" means the total electric energy savings in a
given year from measures installed in that year or in previous
years, but no earlier than January 1, 2012, that are still
operational and providing savings in that year because the
measures have not yet reached the end of their useful lives.
(b-5) Beginning in 2018, electric utilities subject to
this Section that serve more than 3,000,000 retail customers
in the State shall achieve the following cumulative persisting
annual savings goals, as modified by subsection (f) of this
Section and as compared to the deemed baseline of 88,000,000
MWhs of electric power and energy sales set forth in
subsection (b), as reduced by the number of MWhs equal to the
sum of the annual consumption of customers that are exempt
from subsections (a) through (j) of this Section under
subsection (l) of this Section as averaged across the calendar
years 2014, 2015, and 2016, through the implementation of
energy efficiency measures during the applicable year and in

HB3101 - 25 - LRB102 15747 SPS 21113 b
prior years, but no earlier than January 1, 2012:
(1) 7.8% cumulative persisting annual savings for the
year ending December 31, 2018;
(2) 9.1% cumulative persisting annual savings for the
year ending December 31, 2019;
(3) 10.4% cumulative persisting annual savings for the
year ending December 31, 2020;
(4) 11.8% cumulative persisting annual savings for the
year ending December 31, 2021;
(5) 13.1% cumulative persisting annual savings for the
year ending December 31, 2022;
(6) 14.4% cumulative persisting annual savings for the
year ending December 31, 2023;
(7) 15.7% cumulative persisting annual savings for the
year ending December 31, 2024;
(8) 17% cumulative persisting annual savings for the
year ending December 31, 2025;
(9) 17.9% cumulative persisting annual savings for the
year ending December 31, 2026;
(10) 18.8% cumulative persisting annual savings for
the year ending December 31, 2027;
(11) 19.7% cumulative persisting annual savings for
the year ending December 31, 2028;
(12) 20.6% cumulative persisting annual savings for
the year ending December 31, 2029; and
(13) 21.5% cumulative persisting annual savings for

HB3101 - 26 - LRB102 15747 SPS 21113 b
the year ending December 31, 2030.
No later than December 31, 2021, the Illinois Commerce
Commission shall establish additional cumulative persisting
annual savings goals for the years 2031 through 2035. No later
than December 31, 2024, the Illinois Commerce Commission shall
establish additional cumulative persisting annual savings
goals for the years 2036 through 2040. The Commission shall
also establish additional cumulative persisting annual savings
goals every 5 years thereafter to ensure utilities always have
goals that extend at least 11 years into the future. The
cumulative persisting annual savings goals beyond the year
2030 shall increase by 0.9 percentage points per year, absent
a Commission decision to initiate a proceeding to consider
establishing goals that increase by more or less than that
amount. Such a proceeding must be conducted in accordance with
the procedures described in subsection (f) of this Section. If
such a proceeding is initiated, the cumulative persisting
annual savings goals established by the Commission through
that proceeding shall reflect the Commission's best estimate
of the maximum amount of additional savings that are forecast
to be cost-effectively achievable unless such best estimates
would result in goals that represent less than 0.5 percentage
point annual increases in total cumulative persisting annual
savings. The Commission may only establish goals that
represent less than 0.5 percentage point annual increases in
cumulative persisting annual savings if it can demonstrate,

HB3101 - 27 - LRB102 15747 SPS 21113 b
based on clear and convincing evidence and through independent
analysis, that 0.5 percentage point increases are not
cost-effectively achievable. The Commission shall inform its
decision based on an energy efficiency potential study that
conforms to the requirements of subsection (f-5) of this
Section.
(b-10) For purposes of this Section, electric utilities
subject to this Section that serve less than 3,000,000 retail
customers but more than 500,000 retail customers in the State
shall be deemed to have achieved a cumulative persisting
annual savings of 6.6% from energy efficiency measures and
programs implemented during the period beginning January 1,
2012 and ending December 31, 2017, which is based on the deemed
average weather normalized sales of electric power and energy
during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
For the purposes of this subsection (b-10) and subsection
(b-15), the 36,900,000 MWhs of deemed electric power and
energy sales shall be reduced by the number of MWhs equal to
the sum of the annual consumption of customers that are exempt
from subsections (a) through (j) of this Section under
subsection (l) of this Section, as averaged across the
calendar years 2014, 2015, and 2016. After 2017, the deemed
value of cumulative persisting annual savings from energy
efficiency measures and programs implemented during the period
beginning January 1, 2012 and ending December 31, 2017, shall
be reduced each year, as follows, and the applicable value

HB3101 - 28 - LRB102 15747 SPS 21113 b
shall be applied to and count toward the utility's achievement
of the cumulative persisting annual savings goals set forth in
subsection (b-15):
(1) 5.8% deemed cumulative persisting annual savings
for the year ending December 31, 2018;
(2) 5.2% deemed cumulative persisting annual savings
for the year ending December 31, 2019;
(3) 4.5% deemed cumulative persisting annual savings
for the year ending December 31, 2020;
(4) 4.0% deemed cumulative persisting annual savings
for the year ending December 31, 2021;
(5) 3.5% deemed cumulative persisting annual savings
for the year ending December 31, 2022;
(6) 3.1% deemed cumulative persisting annual savings
for the year ending December 31, 2023;
(7) 2.8% deemed cumulative persisting annual savings
for the year ending December 31, 2024;
(8) 2.5% deemed cumulative persisting annual savings
for the year ending December 31, 2025;
(9) 2.3% deemed cumulative persisting annual savings
for the year ending December 31, 2026;
(10) 2.1% deemed cumulative persisting annual savings
for the year ending December 31, 2027;
(11) 1.8% deemed cumulative persisting annual savings
for the year ending December 31, 2028;
(12) 1.7% deemed cumulative persisting annual savings

HB3101 - 29 - LRB102 15747 SPS 21113 b
for the year ending December 31, 2029; and
(13) 1.5% deemed cumulative persisting annual savings
for the year ending December 31, 2030; .
(14) 1.3% deemed cumulative persisting annual savings
for the year ending December 31, 2031;
(15) 1.1% deemed cumulative persisting annual savings
for the year ending December 31, 2032;
(16) 0.9% deemed cumulative persisting annual savings
for the year ending December 31, 2033;
(17) 0.7% deemed cumulative persisting annual savings
for the year ending December 31, 2034;
(18) 0.5% deemed cumulative persisting annual savings
for the year ending December 31, 2035;
(19) 0.4% deemed cumulative persisting annual savings
for the year ending December 31, 2036;
(20) 0.3% deemed cumulative persisting annual savings
for the year ending December 31, 2037;
(21) 0.2% deemed cumulative persisting annual savings
for the year ending December 31, 2038;
(22) 0.1% deemed cumulative persisting annual savings
for the year ending December 31, 2039; and
(23) 0.0% deemed cumulative persisting annual savings
for the year ending December 31, 2040 and all subsequent
years.
(b-15) Beginning in 2018, electric utilities subject to
this Section that serve less than 3,000,000 retail customers

HB3101 - 30 - LRB102 15747 SPS 21113 b
but more than 500,000 retail customers in the State shall
achieve the following cumulative persisting annual savings
goals, as modified by subsection (b-20) and subsection (f) of
this Section and as compared to the deemed baseline as reduced
by the number of MWhs equal to the sum of the annual
consumption of customers that are exempt from subsections (a)
through (j) of this Section under subsection (l) of this
Section as averaged across the calendar years 2014, 2015, and
2016, through the implementation of energy efficiency measures
during the applicable year and in prior years, but no earlier
than January 1, 2012:
(1) 7.4% cumulative persisting annual savings for the
year ending December 31, 2018;
(2) 8.2% cumulative persisting annual savings for the
year ending December 31, 2019;
(3) 9.0% cumulative persisting annual savings for the
year ending December 31, 2020;
(4) 9.8% cumulative persisting annual savings for the
year ending December 31, 2021;
(5) 10.6% cumulative persisting annual savings for the
year ending December 31, 2022;
(6) 11.4% cumulative persisting annual savings for the
year ending December 31, 2023;
(7) 12.2% cumulative persisting annual savings for the
year ending December 31, 2024;
(8) 13% cumulative persisting annual savings for the

HB3101 - 31 - LRB102 15747 SPS 21113 b
year ending December 31, 2025;
(9) 13.6% cumulative persisting annual savings for the
year ending December 31, 2026;
(10) 14.2% cumulative persisting annual savings for
the year ending December 31, 2027;
(11) 14.8% cumulative persisting annual savings for
the year ending December 31, 2028;
(12) 15.4% cumulative persisting annual savings for
the year ending December 31, 2029; and
(13) 16% cumulative persisting annual savings for the
year ending December 31, 2030.
No later than December 31, 2021, the Illinois Commerce
Commission shall establish additional cumulative persisting
annual savings goals for the years 2031 through 2035. No later
than December 31, 2024, the Illinois Commerce Commission shall
establish additional cumulative persisting annual savings
goals for the years 2036 through 2040. The Commission shall
also establish additional cumulative persisting annual savings
goals every 5 years thereafter to ensure utilities always have
goals that extend at least 11 years into the future. The
cumulative persisting annual savings goals beyond the year
2030 shall increase by 0.6 percentage points per year, absent
a Commission decision to initiate a proceeding to consider
establishing goals that increase by more or less than that
amount. Such a proceeding must be conducted in accordance with
the procedures described in subsection (f) of this Section. If

HB3101 - 32 - LRB102 15747 SPS 21113 b
such a proceeding is initiated, the cumulative persisting
annual savings goals established by the Commission through
that proceeding shall reflect the Commission's best estimate
of the maximum amount of additional savings that are forecast
to be cost-effectively achievable unless such best estimates
would result in goals that represent less than 0.4 percentage
point annual increases in total cumulative persisting annual
savings. The Commission may only establish goals that
represent less than 0.4 percentage point annual increases in
cumulative persisting annual savings if it can demonstrate,
based on clear and convincing evidence and through independent
analysis, that 0.4 percentage point increases are not
cost-effectively achievable. The Commission shall inform its
decision based on an energy efficiency potential study that
conforms to the requirements of subsection (f-5) of this
Section.
The difference between the cumulative persisting annual
savings goal for the applicable calendar year and the
cumulative persisting annual savings goal for the immediately
preceding calendar year is 0.8% for the period of January 1,
2018 through December 31, 2025 and 0.6% for the period of
January 1, 2026 through December 31, 2030.
(b-20) Each electric utility subject to this Section may
include cost-effective voltage optimization measures in its
plans submitted under subsections (f) and (g) of this Section,
and the costs incurred by a utility to implement the measures

HB3101 - 33 - LRB102 15747 SPS 21113 b
under a Commission-approved plan shall be recovered under the
provisions of Article IX or Section 16-108.5 of this Act. For
purposes of this Section, the measure life of voltage
optimization measures shall be 15 years. The measure life
period is independent of the depreciation rate of the voltage
optimization assets deployed. Utilities may claim savings from
voltage optimization on circuits for more than 15 years if
they can demonstrate that they have made additional
investments necessary to enable voltage optimization savings
to continue beyond 15 years. Such demonstrations must be
subject to the review of independent evaluation.
Within 270 days after June 1, 2017 (the effective date of
Public Act 99-906), an electric utility that serves less than
3,000,000 retail customers but more than 500,000 retail
customers in the State shall file a plan with the Commission
that identifies the cost-effective voltage optimization
investment the electric utility plans to undertake through
December 31, 2024. The Commission, after notice and hearing,
shall approve or approve with modification the plan within 120
days after the plan's filing and, in the order approving or
approving with modification the plan, the Commission shall
adjust the applicable cumulative persisting annual savings
goals set forth in subsection (b-15) to reflect any amount of
cost-effective energy savings approved by the Commission that
is greater than or less than the following cumulative
persisting annual savings values attributable to voltage

HB3101 - 34 - LRB102 15747 SPS 21113 b
optimization for the applicable year:
(1) 0.0% of cumulative persisting annual savings for
the year ending December 31, 2018;
(2) 0.17% of cumulative persisting annual savings for
the year ending December 31, 2019;
(3) 0.17% of cumulative persisting annual savings for
the year ending December 31, 2020;
(4) 0.33% of cumulative persisting annual savings for
the year ending December 31, 2021;
(5) 0.5% of cumulative persisting annual savings for
the year ending December 31, 2022;
(6) 0.67% of cumulative persisting annual savings for
the year ending December 31, 2023;
(7) 0.83% of cumulative persisting annual savings for
the year ending December 31, 2024; and
(8) 1.0% of cumulative persisting annual savings for
the year ending December 31, 2025 and all subsequent
years.
(b-25) In the event an electric utility jointly offers an
energy efficiency measure or program with a gas utility under
plans approved under this Section and Section 8-104 of this
Act, the electric utility may continue offering the program,
including the gas energy efficiency measures, in the event the
gas utility discontinues funding the program. In that event,
the energy savings value associated with such other fuels
shall be converted to electric energy savings on an equivalent

HB3101 - 35 - LRB102 15747 SPS 21113 b
Btu basis for the premises. However, the electric utility
shall prioritize programs for low-income residential customers
to the extent practicable. An electric utility may recover the
costs of offering the gas energy efficiency measures under
this subsection (b-25).
For those energy efficiency measures or programs that save
both electricity and other fuels but are not jointly offered
with a gas utility under plans approved under this Section and
Section 8-104 or not offered with an affiliated gas utility
under paragraph (6) of subsection (f) of Section 8-104 of this
Act, the electric utility may count savings of fuels other
than electricity toward the achievement of its annual savings
goal, and the energy savings value associated with such other
fuels shall be converted to electric energy savings on an
equivalent Btu basis at the premises.
In no event shall more than 10% of each year's applicable
annual total savings requirement incremental goal as defined
in paragraph (7.5) (7) of subsection (g) of this Section be met
through savings of fuels other than electricity.
(b-27) Beginning in 2022, an electric utility may offer
and promote measures that electrify space heating, water
heating, cooling, drying, cooking, industrial processes, and
other building and industrial end uses that would otherwise be
served by combustion of fossil fuel at the premises, provided
that the electrification measures reduce total energy
consumption at the premises. The electric utility may count

HB3101 - 36 - LRB102 15747 SPS 21113 b
the reduction in energy consumption at the premises toward
achievement of its annual savings goals. The reduction in
energy consumption at the premises shall be calculated as the
difference between: (A) the reduction in Btu consumption of
fossil fuels as a result of electrification, converted to
kilowatt-hour equivalents by dividing by 3,412 Btu's per
kilowatt hour; and (B) the increase in kilowatt hours of
electricity consumption resulting from the displacement of
fossil fuel consumption as a result of electrification. An
electric utility may recover the costs of offering and
promoting electrification measures under this subsection
(b-27).
In no event shall electrification savings counted toward
each year's applicable annual total savings requirement, as
defined in paragraph (7.5) of subsection (g) of this Section,
be greater than:
(1) 5% per year for each year from 2022 through 2025;
(2) 10% per year for each year from 2026 through 2029;
and
(3) 15% per year for 2030 and all subsequent years.
In addition, a minimum of 25% of all electrification savings
counted toward a utility's applicable annual total savings
requirement must be from electrification of end uses in
low-income housing. The limitations on electrification savings
that may be counted toward a utility's annual savings goals
are separate from and in addition to the subsection (b-25)

HB3101 - 37 - LRB102 15747 SPS 21113 b
limitations governing the counting of the other fuel savings
resulting from efficiency measures and programs.
As part of the annual informational filing to the
Commission that is required under paragraph (9) of subsection
(g) of this Section, each utility shall identify the specific
electrification measures offered under this subjection (b-27);
the quantity of each electrification measure that was
installed by its customers; the average total cost, average
utility cost, average reduction in fossil fuel consumption,
and average increase in electricity consumption associated
with each electrification measure; the portion of
installations of each electrification measure that were in
low-income single-family housing, low-income multifamily
housing, non-low-income single-family housing, non-low-income
multifamily housing, commercial buildings, and industrial
facilities; and the quantity of savings associated with each
measure category in each customer category that are being
counted toward the utility's applicable annual total savings
requirement.
(c) Electric utilities shall be responsible for overseeing
the design, development, and filing of energy efficiency plans
with the Commission and may, as part of that implementation,
outsource various aspects of program development and
implementation. A minimum of 10%, for electric utilities that
serve more than 3,000,000 retail customers in the State, and a
minimum of 7%, for electric utilities that serve less than

HB3101 - 38 - LRB102 15747 SPS 21113 b
3,000,000 retail customers but more than 500,000 retail
customers in the State, of the utility's entire portfolio
funding level for a given year shall be used to procure
cost-effective energy efficiency measures from units of local
government, municipal corporations, school districts, public
housing, and community college districts, and buildings owned
by nonprofit organizations, provided that a minimum percentage
of available funds shall be used to procure energy efficiency
from public housing, which percentage shall be equal to public
housing's share of public building energy consumption.
The utilities shall also implement energy efficiency
measures targeted at low-income households, which, for
purposes of this Section, shall be defined as households at or
below 80% of area median income, and expenditures to implement
the measures shall be no less than $40,000,000 $25,000,000 per
year for electric utilities that serve more than 3,000,000
retail customers in the State and no less than $13,000,000
$8,350,000 per year for electric utilities that serve less
than 3,000,000 retail customers but more than 500,000 retail
customers in the State. The ratio of spending on efficiency
programs targeted at low-income multifamily buildings to
spending on efficiency programs targeted at low-income
single-family buildings shall be designed to achieve levels of
savings from each building type that are approximately
proportional to the magnitude of cost-effective lifetime
savings potential in each building type.

HB3101 - 39 - LRB102 15747 SPS 21113 b
The utilities shall work to bundle low-income energy
efficiency offerings with other programs that serve low-income
households to maximize the benefits going to these households.
The utilities shall market and implement low-income energy
efficiency programs in coordination with low-income assistance
programs, Solar for All, and weatherization whenever
practicable. The program implementer shall walk the customer
through the enrollment process for any programs for which the
customer is eligible. The utilities shall also pilot targeting
customers with high arrearages, high energy intensity (ratio
of energy usage divided by home or unit square footage), or
energy assistance programs with energy efficiency offerings,
and then track reduction in arrearages as a result of the
targeting. This targeting and bundling of low-income energy
programs shall be offered to both low-income single-family and
multifamily customers (owners and residents).
The utilities shall also implement a health and safety
fund of a minimum of 0.5% of the total portfolio budget, for
electric utilities that serve more than 3,000,000 retail
customers in the State, and a minimum of 0.5% of the total
portfolio budget, for electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State, of the utility's entire portfolio
funding level for a given year, that shall be used for the
purpose of making grants for technical assistance,
construction, reconstruction, improvement, or repair of

HB3101 - 40 - LRB102 15747 SPS 21113 b
buildings to facilitate their participation in the energy
efficiency programs targeted at low-income single-family and
multifamily households. These funds may also be used for the
purpose of making grants for technical assistance,
construction, reconstruction, improvement, or repair of the
following buildings to facilitate their participation in the
energy efficiency programs created by this Section: (1)
buildings that are owned or operated by registered 501(c)(3)
public charities; and (2) day care centers, day care homes, or
group day care homes, as defined under 89 Ill. Adm. Code Part
406, 407, or 408, respectively. Utilities shall also ensure
that thermal insulating materials used for energy efficiency
programs targeted at low-income single-family and multifamily
households do not contain any substance that is a Category 1
respiratory sensitizer as defined by Appendix A to 29 CFR
1910.1200 (Health Hazard Criteria: A.4 Respiratory or Skin
Sensitization) that was intentionally added or is present at
greater than 0.1% (1000 ppm) by weight in the product.
Each electric utility shall assess opportunities to
implement cost-effective energy efficiency measures and
programs through a public housing authority or authorities
located in its service territory. If such opportunities are
identified, the utility shall propose such measures and
programs to address the opportunities. Expenditures to address
such opportunities shall be credited toward the minimum
procurement and expenditure requirements set forth in this

HB3101 - 41 - LRB102 15747 SPS 21113 b
subsection (c).
Implementation of energy efficiency measures and programs
targeted at low-income households should be contracted, when
it is practicable, to independent third parties that have
demonstrated capabilities to serve such households, with a
preference for not-for-profit entities and government agencies
that have existing relationships with or experience serving
low-income communities in the State.
Each electric utility shall develop and implement
reporting procedures that address and assist in determining
the amount of energy savings that can be applied to the
low-income procurement and expenditure requirements set forth
in this subsection (c). Each electric utility shall also track
the types and quantities or volumes of insulation and air
sealing materials, and their associated energy saving
benefits, installed in energy efficiency programs targeted at
low-income single-family and multifamily households.
The electric utilities shall participate in also convene a
low-income energy efficiency accountability advisory committee
("the committee"), which will directly inform to assist in the
design, implementation, and evaluation of the low-income and
public-housing energy efficiency programs. The committee shall
be comprised of the electric utilities subject to the
requirements of this Section, the gas utilities subject to the
requirements of Section 8-104.1 8-104 of this Act, the
utilities' low-income energy efficiency implementation

HB3101 - 42 - LRB102 15747 SPS 21113 b
contractors, nonprofit organizations, community action
agencies, advocacy groups, State and local governmental
agencies, public-housing organizations, and representatives of
community-based organizations, especially those living in or
working with environmental justice communities and BIPOC
communities. The committee shall be composed of 2
geographically differentiated subcommittees: one for
stakeholders in northern Illinois and one for stakeholders in
central and southern Illinois. The subcommittees shall meet
together at least twice per year.
There shall be one statewide leadership committee led by
and composed of community-based organizations that are
representative of BIPOC and environmental justice communities
and that includes equitable representation from BIPOC
communities. The leadership committee shall be composed of an
equal number of representatives from the 2 subcommittees. The
subcommittees shall address specific programs and issues, with
the leadership committee convening targeted workgroups as
needed. The leadership committee may elect to work with an
independent facilitator to solicit and organize feedback,
recommendations and meeting participation from a wide variety
of community-based stakeholders. If a facilitator is used,
they shall be fair and responsive to the needs of all
stakeholders involved in the committee.
All committee meetings must be accessible, with rotating
locations if meetings are held in-person, virtual

HB3101 - 43 - LRB102 15747 SPS 21113 b
participation options, and materials and agendas circulated
well in advance.
There shall also be opportunities for direct input by
committee members outside of committee meetings, such as via
individual meetings, surveys, emails and calls, to ensure
robust participation by stakeholders with limited capacity and
ability to attend committee meetings. Committee meetings shall
emphasize opportunities to bundle and coordinate delivery of
low-income energy efficiency with other programs that serve
low-income communities, such as Solar for All and bill payment
assistance programs. Meetings shall include educational
opportunities for stakeholders to learn more about these
additional offerings, and the committee shall assist in
figuring out the best methods for coordinated delivery and
implementation of offerings when serving low-income
communities. The committee shall directly and equitably
influence and inform utility low-income and public-housing
energy efficiency programs and priorities. Participating
utilities shall implement recommendations from the committee
whenever possible.
Participating utilities shall track and report how input
from the committee has led to new approaches and changes in
their energy efficiency portfolios. This reporting shall occur
at committee meetings and in quarterly energy efficiency
reports to the Stakeholder Advisory Group and Illinois
Commerce Commission, and other relevant reporting mechanisms.

HB3101 - 44 - LRB102 15747 SPS 21113 b
Participating utilities shall also report on relevant equity
data and metrics requested by the committee, such as energy
burden data, geographic, racial, and other relevant
demographic data on where programs are being delivered and
what populations programs are serving.
The Illinois Commerce Commission shall oversee and have
relevant staff participate in the committee. The committee
shall have a budget of 0.25% of each utility's entire
efficiency portfolio funding for a given year. The budget
shall be overseen by the Commission. The budget shall be used
to provide grants for community-based organizations serving on
the leadership committee, stipends for community-based
organizations participating in the committee, grants for
community-based organizations to do energy efficiency outreach
and education, and relevant meeting needs as determined by the
leadership committee. The education and outreach shall
include, but is not limited to, basic energy efficiency
education, information about low-income energy efficiency
programs, and information on the committee's purpose,
structure, and activities.
(d) Notwithstanding any other provision of law to the
contrary, a utility providing approved energy efficiency
measures and, if applicable, demand-response measures in the
State shall be permitted to recover all reasonable and
prudently incurred costs of those measures from all retail
customers, except as provided in subsection (l) of this

HB3101 - 45 - LRB102 15747 SPS 21113 b
Section, as follows, provided that nothing in this subsection
(d) permits the double recovery of such costs from customers:
(1) The utility may recover its costs through an
automatic adjustment clause tariff filed with and approved
by the Commission. The tariff shall be established outside
the context of a general rate case. Each year the
Commission shall initiate a review to reconcile any
amounts collected with the actual costs and to determine
the required adjustment to the annual tariff factor to
match annual expenditures. To enable the financing of the
incremental capital expenditures, including regulatory
assets, for electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State, the utility's actual year-end
capital structure that includes a common equity ratio,
excluding goodwill, of up to and including 50% of the
total capital structure shall be deemed reasonable and
used to set rates.
(2) A utility may recover its costs through an energy
efficiency formula rate approved by the Commission under a
filing under subsections (f) and (g) of this Section,
which shall specify the cost components that form the
basis of the rate charged to customers with sufficient
specificity to operate in a standardized manner and be
updated annually with transparent information that
reflects the utility's actual costs to be recovered during

HB3101 - 46 - LRB102 15747 SPS 21113 b
the applicable rate year, which is the period beginning
with the first billing day of January and extending
through the last billing day of the following December.
The energy efficiency formula rate shall be implemented
through a tariff filed with the Commission under
subsections (f) and (g) of this Section that is consistent
with the provisions of this paragraph (2) and that shall
be applicable to all delivery services customers. The
Commission shall conduct an investigation of the tariff in
a manner consistent with the provisions of this paragraph
(2), subsections (f) and (g) of this Section, and the
provisions of Article IX of this Act to the extent they do
not conflict with this paragraph (2). The energy
efficiency formula rate approved by the Commission shall
remain in effect at the discretion of the utility and
shall do the following:
(A) Provide for the recovery of the utility's
actual costs incurred under this Section that are
prudently incurred and reasonable in amount consistent
with Commission practice and law. The sole fact that a
cost differs from that incurred in a prior calendar
year or that an investment is different from that made
in a prior calendar year shall not imply the
imprudence or unreasonableness of that cost or
investment.
(B) Reflect the utility's actual year-end capital

HB3101 - 47 - LRB102 15747 SPS 21113 b
structure for the applicable calendar year, excluding
goodwill, subject to a determination of prudence and
reasonableness consistent with Commission practice and
law. To enable the financing of the incremental
capital expenditures, including regulatory assets, for
electric utilities that serve less than 3,000,000
retail customers but more than 500,000 retail
customers in the State, a participating electric
utility's actual year-end capital structure that
includes a common equity ratio, excluding goodwill, of
up to and including 50% of the total capital structure
shall be deemed reasonable and used to set rates.
(C) Include a cost of equity, which shall be
calculated as the sum of the following:
(i) the average for the applicable calendar
year of the monthly average yields of 30-year U.S.
Treasury bonds published by the Board of Governors
of the Federal Reserve System in its weekly H.15
Statistical Release or successor publication; and
(ii) 580 basis points.
At such time as the Board of Governors of the
Federal Reserve System ceases to include the monthly
average yields of 30-year U.S. Treasury bonds in its
weekly H.15 Statistical Release or successor
publication, the monthly average yields of the U.S.
Treasury bonds then having the longest duration

HB3101 - 48 - LRB102 15747 SPS 21113 b
published by the Board of Governors in its weekly H.15
Statistical Release or successor publication shall
instead be used for purposes of this paragraph (2).
(D) Permit and set forth protocols, subject to a
determination of prudence and reasonableness
consistent with Commission practice and law, for the
following:
(i) recovery of incentive compensation expense
that is based on the achievement of operational
metrics, including metrics related to budget
controls, outage duration and frequency, safety,
customer service, efficiency and productivity, and
environmental compliance; however, this protocol
shall not apply if such expense related to costs
incurred under this Section is recovered under
Article IX or Section 16-108.5 of this Act;
incentive compensation expense that is based on
net income or an affiliate's earnings per share
shall not be recoverable under the energy
efficiency formula rate;
(ii) recovery of pension and other
post-employment benefits expense, provided that
such costs are supported by an actuarial study;
however, this protocol shall not apply if such
expense related to costs incurred under this
Section is recovered under Article IX or Section

HB3101 - 49 - LRB102 15747 SPS 21113 b
16-108.5 of this Act;
(iii) recovery of existing regulatory assets
over the periods previously authorized by the
Commission;
(iv) as described in subsection (e),
amortization of costs incurred under this Section;
and
(v) projected, weather normalized billing
determinants for the applicable rate year.
(E) Provide for an annual reconciliation, as
described in paragraph (3) of this subsection (d),
less any deferred taxes related to the reconciliation,
with interest at an annual rate of return equal to the
utility's weighted average cost of capital, including
a revenue conversion factor calculated to recover or
refund all additional income taxes that may be payable
or receivable as a result of that return, of the energy
efficiency revenue requirement reflected in rates for
each calendar year, beginning with the calendar year
in which the utility files its energy efficiency
formula rate tariff under this paragraph (2), with
what the revenue requirement would have been had the
actual cost information for the applicable calendar
year been available at the filing date.
The utility shall file, together with its tariff, the
projected costs to be incurred by the utility during the

HB3101 - 50 - LRB102 15747 SPS 21113 b
rate year under the utility's multi-year plan approved
under subsections (f) and (g) of this Section, including,
but not limited to, the projected capital investment costs
and projected regulatory asset balances with
correspondingly updated depreciation and amortization
reserves and expense, that shall populate the energy
efficiency formula rate and set the initial rates under
the formula.
The Commission shall review the proposed tariff in
conjunction with its review of a proposed multi-year plan,
as specified in paragraph (5) of subsection (g) of this
Section. The review shall be based on the same evidentiary
standards, including, but not limited to, those concerning
the prudence and reasonableness of the costs incurred by
the utility, the Commission applies in a hearing to review
a filing for a general increase in rates under Article IX
of this Act. The initial rates shall take effect beginning
with the January monthly billing period following the
Commission's approval.
The tariff's rate design and cost allocation across
customer classes shall be consistent with the utility's
automatic adjustment clause tariff in effect on June 1,
2017 (the effective date of Public Act 99-906); however,
the Commission may revise the tariff's rate design and
cost allocation in subsequent proceedings under paragraph
(3) of this subsection (d).

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If the energy efficiency formula rate is terminated,
the then current rates shall remain in effect until such
time as the energy efficiency costs are incorporated into
new rates that are set under this subsection (d) or
Article IX of this Act, subject to retroactive rate
adjustment, with interest, to reconcile rates charged with
actual costs.
(3) The provisions of this paragraph (3) shall only
apply to an electric utility that has elected to file an
energy efficiency formula rate under paragraph (2) of this
subsection (d). Subsequent to the Commission's issuance of
an order approving the utility's energy efficiency formula
rate structure and protocols, and initial rates under
paragraph (2) of this subsection (d), the utility shall
file, on or before June 1 of each year, with the Chief
Clerk of the Commission its updated cost inputs to the
energy efficiency formula rate for the applicable rate
year and the corresponding new charges, as well as the
information described in paragraph (9) of subsection (g)
of this Section. Each such filing shall conform to the
following requirements and include the following
information:
(A) The inputs to the energy efficiency formula
rate for the applicable rate year shall be based on the
projected costs to be incurred by the utility during
the rate year under the utility's multi-year plan

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approved under subsections (f) and (g) of this
Section, including, but not limited to, projected
capital investment costs and projected regulatory
asset balances with correspondingly updated
depreciation and amortization reserves and expense.
The filing shall also include a reconciliation of the
energy efficiency revenue requirement that was in
effect for the prior rate year (as set by the cost
inputs for the prior rate year) with the actual
revenue requirement for the prior rate year
(determined using a year-end rate base) that uses
amounts reflected in the applicable FERC Form 1 that
reports the actual costs for the prior rate year. Any
over-collection or under-collection indicated by such
reconciliation shall be reflected as a credit against,
or recovered as an additional charge to, respectively,
with interest calculated at a rate equal to the
utility's weighted average cost of capital approved by
the Commission for the prior rate year, the charges
for the applicable rate year. Such over-collection or
under-collection shall be adjusted to remove any
deferred taxes related to the reconciliation, for
purposes of calculating interest at an annual rate of
return equal to the utility's weighted average cost of
capital approved by the Commission for the prior rate
year, including a revenue conversion factor calculated

HB3101 - 53 - LRB102 15747 SPS 21113 b
to recover or refund all additional income taxes that
may be payable or receivable as a result of that
return. Each reconciliation shall be certified by the
participating utility in the same manner that FERC
Form 1 is certified. The filing shall also include the
charge or credit, if any, resulting from the
calculation required by subparagraph (E) of paragraph
(2) of this subsection (d).
Notwithstanding any other provision of law to the
contrary, the intent of the reconciliation is to
ultimately reconcile both the revenue requirement
reflected in rates for each calendar year, beginning
with the calendar year in which the utility files its
energy efficiency formula rate tariff under paragraph
(2) of this subsection (d), with what the revenue
requirement determined using a year-end rate base for
the applicable calendar year would have been had the
actual cost information for the applicable calendar
year been available at the filing date.
For purposes of this Section, "FERC Form 1" means
the Annual Report of Major Electric Utilities,
Licensees and Others that electric utilities are
required to file with the Federal Energy Regulatory
Commission under the Federal Power Act, Sections 3,
4(a), 304 and 209, modified as necessary to be
consistent with 83 Ill. Admin. Code Part 415 as of May

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1, 2011. Nothing in this Section is intended to allow
costs that are not otherwise recoverable to be
recoverable by virtue of inclusion in FERC Form 1.
(B) The new charges shall take effect beginning on
the first billing day of the following January billing
period and remain in effect through the last billing
day of the next December billing period regardless of
whether the Commission enters upon a hearing under
this paragraph (3).
(C) The filing shall include relevant and
necessary data and documentation for the applicable
rate year. Normalization adjustments shall not be
required.
Within 45 days after the utility files its annual
update of cost inputs to the energy efficiency formula
rate, the Commission shall with reasonable notice,
initiate a proceeding concerning whether the projected
costs to be incurred by the utility and recovered during
the applicable rate year, and that are reflected in the
inputs to the energy efficiency formula rate, are
consistent with the utility's approved multi-year plan
under subsections (f) and (g) of this Section and whether
the costs incurred by the utility during the prior rate
year were prudent and reasonable. The Commission shall
also have the authority to investigate the information and
data described in paragraph (9) of subsection (g) of this

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Section, including the proposed adjustment to the
utility's return on equity component of its weighted
average cost of capital. During the course of the
proceeding, each objection shall be stated with
particularity and evidence provided in support thereof,
after which the utility shall have the opportunity to
rebut the evidence. Discovery shall be allowed consistent
with the Commission's Rules of Practice, which Rules of
Practice shall be enforced by the Commission or the
assigned administrative law judge. The Commission shall
apply the same evidentiary standards, including, but not
limited to, those concerning the prudence and
reasonableness of the costs incurred by the utility,
during the proceeding as it would apply in a proceeding to
review a filing for a general increase in rates under
Article IX of this Act. The Commission shall not, however,
have the authority in a proceeding under this paragraph
(3) to consider or order any changes to the structure or
protocols of the energy efficiency formula rate approved
under paragraph (2) of this subsection (d). In a
proceeding under this paragraph (3), the Commission shall
enter its order no later than the earlier of 195 days after
the utility's filing of its annual update of cost inputs
to the energy efficiency formula rate or December 15. The
utility's proposed return on equity calculation, as
described in paragraphs (7) through (9) of subsection (g)

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of this Section, shall be deemed the final, approved
calculation on December 15 of the year in which it is filed
unless the Commission enters an order on or before
December 15, after notice and hearing, that modifies such
calculation consistent with this Section. The Commission's
determinations of the prudence and reasonableness of the
costs incurred, and determination of such return on equity
calculation, for the applicable calendar year shall be
final upon entry of the Commission's order and shall not
be subject to reopening, reexamination, or collateral
attack in any other Commission proceeding, case, docket,
order, rule, or regulation; however, nothing in this
paragraph (3) shall prohibit a party from petitioning the
Commission to rehear or appeal to the courts the order
under the provisions of this Act.
(e) Beginning on June 1, 2017 (the effective date of
Public Act 99-906), a utility subject to the requirements of
this Section may elect to defer, as a regulatory asset, up to
the full amount of its expenditures incurred under this
Section for each annual period, including, but not limited to,
any expenditures incurred above the funding level set by
subsection (f) of this Section for a given year. The total
expenditures deferred as a regulatory asset in a given year
shall be amortized and recovered over a period that is equal to
the weighted average of the energy efficiency measure lives
implemented for that year that are reflected in the regulatory

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asset. The unamortized balance shall be recognized as of
December 31 for a given year. The utility shall also earn a
return on the total of the unamortized balances of all of the
energy efficiency regulatory assets, less any deferred taxes
related to those unamortized balances, at an annual rate equal
to the utility's weighted average cost of capital that
includes, based on a year-end capital structure, the utility's
actual cost of debt for the applicable calendar year and a cost
of equity, which shall be calculated as the sum of the (i) the
average for the applicable calendar year of the monthly
average yields of 30-year U.S. Treasury bonds published by the
Board of Governors of the Federal Reserve System in its weekly
H.15 Statistical Release or successor publication; and (ii)
580 basis points, including a revenue conversion factor
calculated to recover or refund all additional income taxes
that may be payable or receivable as a result of that return.
Capital investment costs shall be depreciated and recovered
over their useful lives consistent with generally accepted
accounting principles. The weighted average cost of capital
shall be applied to the capital investment cost balance, less
any accumulated depreciation and accumulated deferred income
taxes, as of December 31 for a given year.
When an electric utility creates a regulatory asset under
the provisions of this Section, the costs are recovered over a
period during which customers also receive a benefit which is
in the public interest. Accordingly, it is the intent of the

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General Assembly that an electric utility that elects to
create a regulatory asset under the provisions of this Section
shall recover all of the associated costs as set forth in this
Section. After the Commission has approved the prudence and
reasonableness of the costs that comprise the regulatory
asset, the electric utility shall be permitted to recover all
such costs, and the value and recoverability through rates of
the associated regulatory asset shall not be limited, altered,
impaired, or reduced.
(f) Beginning in 2017, each electric utility shall file an
energy efficiency plan with the Commission to meet the energy
efficiency standards for the next applicable multi-year period
beginning January 1 of the year following the filing,
according to the schedule set forth in paragraphs (1) through
(3) of this subsection (f). If a utility does not file such a
plan on or before the applicable filing deadline for the plan,
it shall face a penalty of $100,000 per day until the plan is
filed.
(1) No later than 30 days after June 1, 2017 (the
effective date of Public Act 99-906), each electric
utility shall file a 4-year energy efficiency plan
commencing on January 1, 2018 that is designed to achieve
the cumulative persisting annual savings goals specified
in paragraphs (1) through (4) of subsection (b-5) of this
Section or in paragraphs (1) through (4) of subsection
(b-15) of this Section, as applicable, through

HB3101 - 59 - LRB102 15747 SPS 21113 b
implementation of energy efficiency measures; however, the
goals may be reduced if the utility's expenditures are
limited pursuant to subsection (m) of this Section or, for
a utility that serves less than 3,000,000 retail
customers, if each of the following conditions are met:
(A) the plan's analysis and forecasts of the utility's
ability to acquire energy savings demonstrate that
achievement of such goals is not cost effective; and (B)
the amount of energy savings achieved by the utility as
determined by the independent evaluator for the most
recent year for which savings have been evaluated
preceding the plan filing was less than the average annual
amount of savings required to achieve the goals for the
applicable 4-year plan period. Except as provided in
subsection (m) of this Section, annual increases in
cumulative persisting annual savings goals during the
applicable 4-year plan period shall not be reduced to
amounts that are less than the maximum amount of
cumulative persisting annual savings that is forecast to
be cost-effectively achievable during the 4-year plan
period. The Commission shall review any proposed goal
reduction as part of its review and approval of the
utility's proposed plan.
(2) No later than March 1, 2021, each electric utility
shall file a 4-year energy efficiency plan commencing on
January 1, 2022 that is designed to achieve the cumulative

HB3101 - 60 - LRB102 15747 SPS 21113 b
persisting annual savings goals specified in paragraphs
(5) through (8) of subsection (b-5) of this Section or in
paragraphs (5) through (8) of subsection (b-15) of this
Section, as applicable, through implementation of energy
efficiency measures; however, the goals may be reduced if
either (1) clear and convincing evidence demonstrates,
through independent analysis, that the expenditure limits
in subsection (m) of this Section preclude full
achievement of the goals or (2) the utility's expenditures
are limited pursuant to subsection (m) of this Section or,
each of the following conditions are met: (A) the plan's
analysis and forecasts of the utility's ability to acquire
energy savings demonstrate by clear and convincing
evidence and through independent analysis that achievement
of such goals is not cost effective; and (B) the amount of
energy savings achieved by the utility as determined by
the independent evaluator for the most recent year for
which savings have been evaluated preceding the plan
filing was less than the average annual amount of savings
required to achieve the goals for the applicable 4-year
plan period. If there is any significant uncertainty
regarding whether achieving the savings goals specified in
paragraph (b-5) or (b-15) of this Section is possible both
cost-effectively and within the expenditure limits in
subsection (m), such savings goals shall not be reduced.
Except as provided in subsection (m) of this Section,

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annual increases in cumulative persisting annual savings
goals during the applicable 4-year plan period shall not
be reduced to amounts that are less than the maximum
amount of cumulative persisting annual savings that is
forecast to be cost-effectively achievable during the
4-year plan period. The Commission shall review any
proposed goal reduction as part of its review and approval
of the utility's proposed plan, taking into account the
results of the potential study required by subsection
(f-5) of this Section.
(3) No later than March 1, 2025, each electric utility
shall file a 4-year 5-year energy efficiency plan
commencing on January 1, 2026 that is designed to achieve
the cumulative persisting annual savings goals specified
in paragraphs (9) through (12) (13) of subsection (b-5) of
this Section or in paragraphs (9) through (12) (13) of
subsection (b-15) of this Section, as applicable, through
implementation of energy efficiency measures; however, the
goals may be reduced if either (1) clear and convincing
evidence demonstrates, through independent analysis, that
the expenditure limits in subsection (m) of this Section
preclude full achievement of the goals or (2) the
utility's expenditures are limited pursuant to subsection
(m) of this Section or, each of the following conditions
are met: (A) the plan's analysis and forecasts of the
utility's ability to acquire energy savings demonstrate by

HB3101 - 62 - LRB102 15747 SPS 21113 b
clear and convincing evidence and through independent
analysis that achievement of such goals is not cost
effective; and (B) the amount of energy savings achieved
by the utility as determined by the independent evaluator
for the most recent year for which savings have been
evaluated preceding the plan filing was less than the
average annual amount of savings required to achieve the
goals for the applicable 4-year 5-year plan period. If
there is any significant uncertainty regarding whether
achieving the savings goals specified in paragraphs (b-5)
or (b-15) of this Section is possible both
cost-effectively and within the expenditure limits in
subsection (m), such savings goals shall not be reduced.
Except as provided in subsection (m) of this Section,
annual increases in cumulative persisting annual savings
goals during the applicable 4-year 5-year plan period
shall not be reduced to amounts that are less than the
maximum amount of cumulative persisting annual savings
that is forecast to be cost-effectively achievable during
the 4-year 5-year plan period. The Commission shall review
any proposed goal reduction as part of its review and
approval of the utility's proposed plan, taking into
account the results of the potential study required by
subsection (f-5) of this Section.
(4) No later than March 1, 2029, and every 4 years
thereafter, each electric utility shall file a 4-year

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energy efficiency plan commencing on January 1, 2030, and
every 4 years thereafter, respectively, that is designed
to achieve the cumulative persisting annual savings goals
established by the Illinois Commerce Commission pursuant
to direction of subsections (b-5) and (b-15) of this
Section, as applicable, through implementation of energy
efficiency measures; however, the goals may be reduced if
either (1) clear and convincing evidence and independent
analysis demonstrates that the expenditure limits in
subsection (m) of this Section preclude full achievement
of the goals or (2) each of the following conditions are
met: (A) the plan's analysis and forecasts of the
utility's ability to acquire energy savings demonstrate by
clear and convincing evidence and through independent
analysis that achievement of such goals is not
cost-effective; and (B) the amount of energy savings
achieved by the utility as determined by the independent
evaluator for the most recent year for which savings have
been evaluated preceding the plan filing was less than the
average annual amount of savings required to achieve the
goals for the applicable 4-year plan period. If there is
any significant uncertainty regarding whether achieving
the savings goals specified in paragraphs (b-5) or (b-15)
of this Section is possible both cost-effectively and
within the expenditure limits in subsection (m), such
savings goals shall not be reduced. Except as provided in

HB3101 - 64 - LRB102 15747 SPS 21113 b
subsection (m) of this Section, annual increases in
cumulative persisting annual savings goals during the
applicable 4-year plan period shall not be reduced to
amounts that are less than the maximum amount of
cumulative persisting annual savings that is forecast to
be cost-effectively achievable during the 4-year plan
period. The Commission shall review any proposed goal
reduction as part of its review and approval of the
utility's proposed plan.
Each utility's plan shall set forth the utility's
proposals to meet the energy efficiency standards identified
in subsection (b-5) or (b-15), as applicable and as such
standards may have been modified under this subsection (f),
taking into account the unique circumstances of the utility's
service territory and results of an energy efficiency
potential study as described in subsection (f-5) of this
Section. For those plans commencing on January 1, 2018, the
Commission shall seek public comment on the utility's plan and
shall issue an order approving or disapproving each plan no
later than 105 days after June 1, 2017 (the effective date of
Public Act 99-906). For those plans commencing after December
31, 2021, the Commission shall seek public comment on the
utility's plan and shall issue an order approving or
disapproving each plan within 6 months after its submission.
If the Commission disapproves a plan, the Commission shall,
within 30 days, describe in detail the reasons for the

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disapproval and describe a path by which the utility may file a
revised draft of the plan to address the Commission's concerns
satisfactorily. If the utility does not refile with the
Commission within 60 days, the utility shall be subject to
penalties at a rate of $100,000 per day until the plan is
filed. This process shall continue, and penalties shall
accrue, until the utility has successfully filed a portfolio
of energy efficiency and demand-response measures. Penalties
shall be deposited into the Energy Efficiency Trust Fund.
(f-5) Energy efficiency potential study. An energy
efficiency potential study shall be commissioned and overseen
by the Illinois Commerce Commission. The potential study shall
be a dual fuel study, addressing both gas and electric
efficiency potential, such that the requirements both in this
subsection (f-5) and in subsection (j-5) of Section 8-104.1
are met in an integrated and cost-efficient manner. The
potential study shall be reviewed as part of the approval of a
utility's plan filed pursuant to subsection (f) of this
Section. The potential study shall be designed and conducted
with input from a Potential Study Stakeholder Committee
established by the Commission. This Committee shall be
composed of representatives from each electric utility, the
Illinois Attorney General's office, at least 2 environmental
stakeholders, at least one community-based organization, and
additional parties representing consumers. The Committee shall
provide input, at a minimum, into the scope of work for the

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studies, the selection of vendors to perform the studies in
accordance with appropriate confidentiality and conflict of
interest provisions, and draft work products. The Committee
shall make best efforts to achieve consensus on the key
elements of the potential study, including:
(i) savings potential from efficiency measures and
program concepts that are known at the time of the study;
(ii) likely emergence of new technology or new program
concepts that could emerge;
(iii) likely savings potential from efficiency
measures that may be unique to individual industries or
individual facilities; and
(iv) the experience of other similar utilities, areas
and jurisdictions in maximizing achievement of
cost-effective savings.
When the Committee is not able to reach consensus, the
Commission shall make the final decision.
(g) In submitting proposed plans and funding levels under
subsection (f) of this Section to meet the savings goals
identified in subsection (b-5) or (b-15) of this Section, as
applicable, the utility shall:
(1) Demonstrate that its proposed energy efficiency
measures will achieve the applicable requirements that are
identified in subsection (b-5) or (b-15) of this Section,
as modified by subsection (f) of this Section.
(2) (Blank). Present specific proposals to implement

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new building and appliance standards that have been placed
into effect.
(2.5) Demonstrate consideration of program options for
(A) advancing new building codes, appliance standards, and
municipal regulations governing existing and new building
efficiency improvements and (B) supporting efforts to
improve compliance with new building codes, appliance
standards and municipal regulations, as potentially
cost-effective means of acquiring energy savings to count
toward savings goals.
(3) Demonstrate that its overall portfolio of
measures, not including low-income programs described in
subsection (c) of this Section, is cost-effective using
the total resource cost test or complies with paragraphs
(1) through (3) of subsection (f) of this Section and
represents a diverse cross-section of opportunities for
customers of all rate classes, other than those customers
described in subsection (l) of this Section, to
participate in the programs. Individual measures need not
be cost effective.
(3.5) Demonstrate that the utility's plan integrates
the delivery of energy efficiency programs with natural
gas efficiency programs, programs promoting distributed
solar, programs promoting demand response and other
efforts to address bill payment issues, including, but not
limited to, LIHEAP and the Percentage of Income Payment

HB3101 - 68 - LRB102 15747 SPS 21113 b
Plan, to the extent such integration is practical and has
the potential to enhance customer engagement, minimize
market confusion, or reduce administrative costs.
(4) Present a third-party energy efficiency
implementation program subject to the following
requirements:
(A) beginning with the year commencing January 1,
2019, electric utilities that serve more than
3,000,000 retail customers in the State shall fund
third-party energy efficiency programs in an amount
that is no less than $25,000,000 per year, and
electric utilities that serve less than 3,000,000
retail customers but more than 500,000 retail
customers in the State shall fund third-party energy
efficiency programs in an amount that is no less than
$8,350,000 per year;
(B) during 2018, the utility shall conduct a
solicitation process for purposes of requesting
proposals from third-party vendors for those
third-party energy efficiency programs to be offered
during one or more of the years commencing January 1,
2019, January 1, 2020, and January 1, 2021; for those
multi-year plans commencing on January 1, 2022 and
January 1, 2026, the utility shall conduct a
solicitation process during 2021 and 2025,
respectively, for purposes of requesting proposals

HB3101 - 69 - LRB102 15747 SPS 21113 b
from third-party vendors for those third-party energy
efficiency programs to be offered during one or more
years of the respective multi-year plan period; for
each solicitation process, the utility shall identify
the sector, technology, or geographical area for which
it is seeking requests for proposals; the solicitation
process must be either for programs that fill gaps in
the utility's program portfolio or for programs that
target business sectors, building types, geographies,
or other specific parts of its customer base with
initiatives that would be more effective at reaching
these customer segments than the utilities' programs
filed in its energy efficiency plans;
(C) the utility shall propose the bidder
qualifications, performance measurement process, and
contract structure, which must include a performance
payment mechanism and general terms and conditions;
the proposed qualifications, process, and structure
shall be subject to Commission approval; and
(D) the utility shall retain an independent third
party to score the proposals received through the
solicitation process described in this paragraph (4),
rank them according to their cost per lifetime
kilowatt-hours saved, and assemble the portfolio of
third-party programs.
The electric utility shall recover all costs

HB3101 - 70 - LRB102 15747 SPS 21113 b
associated with Commission-approved, third-party
administered programs regardless of the success of those
programs.
(4.5) Implement cost-effective demand-response
measures to reduce peak demand by 0.1% over the prior year
for eligible retail customers, as defined in Section
16-111.5 of this Act, and for customers that elect hourly
service from the utility pursuant to Section 16-107 of
this Act, provided those customers have not been declared
competitive. This requirement continues until December 31,
2026.
(5) Include a proposed or revised cost-recovery tariff
mechanism, as provided for under subsection (d) of this
Section, to fund the proposed energy efficiency and
demand-response measures and to ensure the recovery of the
prudently and reasonably incurred costs of
Commission-approved programs.
(6) Provide for an annual independent evaluation of
the performance of the cost-effectiveness of the utility's
portfolio of measures, as well as a full review of the
multi-year plan results of the broader net program impacts
and, to the extent practical, for adjustment of the
measures on a going-forward basis as a result of the
evaluations. The resources dedicated to evaluation shall
not exceed 3% of portfolio resources in any given year.
(7) For electric utilities that serve more than

HB3101 - 71 - LRB102 15747 SPS 21113 b
3,000,000 retail customers in the State:
(A) Through December 31, 2025, provide for an
adjustment to the return on equity component of the
utility's weighted average cost of capital calculated
under subsection (d) of this Section:
(i) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is less than the applicable
annual incremental goal, then the return on equity
component shall be reduced by a maximum of 200
basis points in the event that the utility
achieved no more than 75% of such goal. If the
utility achieved more than 75% of the applicable
annual incremental goal but less than 100% of such
goal, then the return on equity component shall be
reduced by 8 basis points for each percent by
which the utility failed to achieve the goal.
(ii) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is more than the applicable
annual incremental goal, then the return on equity
component shall be increased by a maximum of 200
basis points in the event that the utility
achieved at least 125% of such goal. If the
utility achieved more than 100% of the applicable
annual incremental goal but less than 125% of such

HB3101 - 72 - LRB102 15747 SPS 21113 b
goal, then the return on equity component shall be
increased by 8 basis points for each percent by
which the utility achieved above the goal. If the
applicable annual incremental goal was reduced
under paragraphs (1) or (2) of subsection (f) of
this Section, then the following adjustments shall
be made to the calculations described in this item
(ii):
(aa) the calculation for determining
achievement that is at least 125% of the
applicable annual incremental goal shall use
the unreduced applicable annual incremental
goal to set the value; and
(bb) the calculation for determining
achievement that is less than 125% but more
than 100% of the applicable annual incremental
goal shall use the reduced applicable annual
incremental goal to set the value for 100%
achievement of the goal and shall use the
unreduced goal to set the value for 125%
achievement. The 8 basis point value shall
also be modified, as necessary, so that the
200 basis points are evenly apportioned among
each percentage point value between 100% and
125% achievement.
(B) For the period January 1, 2026 through

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December 31, 2029 and in all subsequent 4-year periods
2030, provide for an adjustment to the return on
equity component of the utility's weighted average
cost of capital calculated under subsection (d) of
this Section:
(i) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is less than the applicable
annual incremental goal, then the return on equity
component shall be reduced by a maximum of 200
basis points in the event that the utility
achieved no more than 66% of such goal. If the
utility achieved more than 66% of the applicable
annual incremental goal but less than 100% of such
goal, then the return on equity component shall be
reduced by 6 basis points for each percent by
which the utility failed to achieve the goal.
(ii) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is more than the applicable
annual incremental goal, then the return on equity
component shall be increased by a maximum of 200
basis points in the event that the utility
achieved at least 134% of such goal. If the
utility achieved more than 100% of the applicable
annual incremental goal but less than 134% of such

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goal, then the return on equity component shall be
increased by 6 basis points for each percent by
which the utility achieved above the goal. If the
applicable annual incremental goal was reduced
under paragraph (3) of subsection (f) of this
Section, then the following adjustments shall be
made to the calculations described in this item
(ii):
(aa) the calculation for determining
achievement that is at least 134% of the
applicable annual incremental goal shall use
the unreduced applicable annual incremental
goal to set the value; and
(bb) the calculation for determining
achievement that is less than 134% but more
than 100% of the applicable annual incremental
goal shall use the reduced applicable annual
incremental goal to set the value for 100%
achievement of the goal and shall use the
unreduced goal to set the value for 134%
achievement. The 6 basis point value shall
also be modified, as necessary, so that the
200 basis points are evenly apportioned among
each percentage point value between 100% and
134% achievement.
(C) Notwithstanding the provisions of

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subparagraphs (A) and (B) of this paragraph (7), if
the applicable annual incremental goal for an electric
utility is ever less than 0.6% of deemed average
weather normalized sales of electric power and energy
during calendar years 2014, 2015, and 2016, an
adjustment to the return on equity component of the
utility's weighted average cost of capital calculated
under subsection (d) of this Section shall be made as
follows:
(i) If the independent evaluator determines
that the utility achieved a cumulative persisting
annual savings that is less than would have been
achieved had the applicable annual incremental
goal been achieved, then the return on equity
component shall be reduced by a maximum of 200
basis points if the utility achieved no more than
75% of its applicable annual total savings
requirement as defined in paragraph (7.5) of this
subsection. If the utility achieved more than 75%
of the applicable annual total savings requirement
but less than 100% of such goal, then the return on
equity component shall be reduced by 8 basis
points for each percent by which the utility
failed to achieve the goal.
(ii) If the independent evaluator determines
that the utility achieved a cumulative persisting

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annual savings that is more than would have been
achieved had the applicable annual incremental
goal been achieved, then the return on equity
component shall be increased by a maximum of 200
basis points if the utility achieved at least 125%
of its applicable annual total savings
requirement. If the utility achieved more than
100% of the applicable annual total savings
requirement but less than 125% of such goal, then
the return on equity component shall be increased
by 8 basis points for each percent by which the
utility achieved above the applicable annual total
savings requirement. If the applicable annual
incremental goal was reduced under paragraphs (1)
or (2) of subsection (f) of this Section, then the
following adjustments shall be made to the
calculations described in this item (ii):
(aa) the calculation for determining
achievement that is at least 125% of the
applicable annual total savings requirement
shall use the unreduced applicable annual
incremental goal to set the value; and
(bb) the calculation for determining
achievement that is less than 125% but more
than 100% of the applicable annual total
savings requirement shall use the reduced

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applicable annual incremental goal to set the
value for 100% achievement of the goal and
shall use the unreduced goal to set the value
for 125% achievement. The 8 basis point value
shall also be modified, as necessary, so that
the 200 basis points are evenly apportioned
among each percentage point value between 100%
and 125% achievement.
(7.5) For purposes of this Section, the term
"applicable annual incremental goal" means the difference
between the cumulative persisting annual savings goal for
the calendar year that is the subject of the independent
evaluator's determination and the cumulative persisting
annual savings goal for the immediately preceding calendar
year, as such goals are defined in subsections (b-5) and
(b-15) of this Section and as these goals may have been
modified as provided for under subsection (b-20) and
paragraphs (1) through (3) of subsection (f) of this
Section. Under subsections (b), (b-5), (b-10), and (b-15)
of this Section, a utility must first replace energy
savings from measures that have expired reached the end of
their measure lives and would otherwise have to be
replaced to meet the applicable savings goals identified
in subsection (b-5) or (b-15) of this Section before any
progress towards achievement of its applicable annual
incremental goal may be counted. Savings may expire

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because measures installed in previous years have reached
the end of their lives, because measures installed in
previous years are producing lower savings in the current
year than in the previous year, or for other reasons
identified by independent evaluators. Notwithstanding
anything else set forth in this Section, the difference
between the actual annual incremental savings achieved in
any given year, including the replacement of energy
savings from measures that have expired, and the
applicable annual incremental goal shall not affect
adjustments to the return on equity for subsequent
calendar years under this subsection (g).
In this Section, "applicable annual total savings
requirement" means the total amount of new annual savings
that the utility must achieve in any given year to achieve
the applicable annual incremental goal. This is equal to
the applicable annual incremental goal plus the total new
annual savings that are required to replace savings that
expired in or at the end of the previous year.
(8) For electric utilities that serve less than
3,000,000 retail customers but more than 500,000 retail
customers in the State:
(A) Through December 31, 2025, the applicable
annual incremental goal shall be compared to the
annual incremental savings as determined by the
independent evaluator.

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(i) The return on equity component shall be
reduced by 8 basis points for each percent by
which the utility did not achieve 84.4% of the
applicable annual incremental goal.
(ii) The return on equity component shall be
increased by 8 basis points for each percent by
which the utility exceeded 100% of the applicable
annual incremental goal.
(iii) The return on equity component shall not
be increased or decreased if the annual
incremental savings as determined by the
independent evaluator is greater than 84.4% of the
applicable annual incremental goal and less than
100% of the applicable annual incremental goal.
(iv) The return on equity component shall not
be increased or decreased by an amount greater
than 200 basis points pursuant to this
subparagraph (A).
(B) For the period of January 1, 2026 through
December 31, 2029 and in all subsequent 4-year periods
2030, the applicable annual incremental goal shall be
compared to the annual incremental savings as
determined by the independent evaluator.
(i) The return on equity component shall be
reduced by 6 basis points for each percent by
which the utility did not achieve 100% of the

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applicable annual incremental goal.
(ii) The return on equity component shall be
increased by 6 basis points for each percent by
which the utility exceeded 100% of the applicable
annual incremental goal.
(iii) The return on equity component shall not
be increased or decreased by an amount greater
than 200 basis points pursuant to this
subparagraph (B).
(C) Notwithstanding provisions in subparagraphs
(A) and (B) of paragraph (7) of this subsection, if the
applicable annual incremental goal for an electric
utility is ever less than 0.6% of deemed average
weather normalized sales of electric power and energy
during calendar years 2014, 2015 and 2016, an
adjustment to the return on equity component of the
utility's weighted average cost of capital calculated
under subsection (d) of this Section shall be made as
follows:
(i) The return on equity component shall be
reduced by 8 basis points for each percent by
which the utility did not achieve 100% of the
applicable annual total savings requirement.
(ii) The return on equity component shall be
increased by 8 basis points for each percent by
which the utility exceeded 100% of the applicable

HB3101 - 81 - LRB102 15747 SPS 21113 b
annual total savings requirement.
(iii) The return on equity component shall not
be increased or decreased by an amount greater
than 200 basis points pursuant to this
subparagraph (C).
(D) (C) If the applicable annual incremental goal
was reduced under paragraphs (1), (2), or (3), or (4)
of subsection (f) of this Section, then the following
adjustments shall be made to the calculations
described in subparagraphs (A), and (B), and (C) of
this paragraph (8):
(i) The calculation for determining
achievement that is at least 125% or 134%, as
applicable, of the applicable annual incremental
goal or the applicable annual total savings
requirement, as applicable, shall use the
unreduced applicable annual incremental goal to
set the value.
(ii) For the period through December 31, 2025,
the calculation for determining achievement that
is less than 125% but more than 100% of the
applicable annual incremental goal or the
applicable annual total savings requirement, as
applicable, shall use the reduced applicable
annual incremental goal to set the value for 100%
achievement of the goal and shall use the

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unreduced goal to set the value for 125%
achievement. The 8 basis point value shall also be
modified, as necessary, so that the 200 basis
points are evenly apportioned among each
percentage point value between 100% and 125%
achievement.
(iii) For the period of January 1, 2026
through December 31, 2029 and all subsequent
4-year periods, the calculation for determining
achievement that is less than 125% or 134%, as
applicable, but more than 100% of the applicable
annual incremental goal or the applicable annual
total savings requirement, as applicable, shall
use the reduced applicable annual incremental goal
to set the value for 100% achievement of the goal
and shall use the unreduced goal to set the value
for 125% achievement. The 6 or 8 basis point
values, as applicable, shall also be modified, as
necessary, so that the 200 basis points are evenly
apportioned among each percentage point value
between 100% and 125% or between 100% and 134%
achievement, as applicable 2030, the calculation
for determining achievement that is less than 134%
but more than 100% of the applicable annual
incremental goal shall use the reduced applicable
annual incremental goal to set the value for 100%

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achievement of the goal and shall use the
unreduced goal to set the value for 125%
achievement. The 6 basis point value shall also be
modified, as necessary, so that the 200 basis
points are evenly apportioned among each
percentage point value between 100% and 134%
achievement.
(9) The utility shall submit the energy savings data
to the independent evaluator no later than 30 days after
the close of the plan year. The independent evaluator
shall determine the cumulative persisting annual savings
for a given plan year, as well as an estimate of job
impacts and other macroeconomic impacts of the efficiency
programs for that year, no later than 120 days after the
close of the plan year. The utility shall submit an
informational filing to the Commission no later than 160
days after the close of the plan year that attaches the
independent evaluator's final report identifying the
cumulative persisting annual savings for the year and
calculates, under paragraph (7) or (8) of this subsection
(g), as applicable, any resulting change to the utility's
return on equity component of the weighted average cost of
capital applicable to the next plan year beginning with
the January monthly billing period and extending through
the December monthly billing period. However, if the
utility recovers the costs incurred under this Section

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under paragraphs (2) and (3) of subsection (d) of this
Section, then the utility shall not be required to submit
such informational filing, and shall instead submit the
information that would otherwise be included in the
informational filing as part of its filing under paragraph
(3) of such subsection (d) that is due on or before June 1
of each year.
For those utilities that must submit the informational
filing, the Commission may, on its own motion or by
petition, initiate an investigation of such filing,
provided, however, that the utility's proposed return on
equity calculation shall be deemed the final, approved
calculation on December 15 of the year in which it is filed
unless the Commission enters an order on or before
December 15, after notice and hearing, that modifies such
calculation consistent with this Section.
The adjustments to the return on equity component
described in paragraphs (7) and (8) of this subsection (g)
shall be applied as described in such paragraphs through a
separate tariff mechanism, which shall be filed by the
utility under subsections (f) and (g) of this Section.
(9.5) The utility must demonstrate how it will ensure
that program implementation contractors and energy
efficiency installation vendors will meet multiple
workforce equity building criteria, including, but not
limited to:

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(i) Ensuring that an amount of program portfolio
incentive funding proportional to the population of
BIPOC persons within the utility's territory, as
updated every 2 years, is administered or installed by
energy efficiency installation vendors who meet one of
the following criteria:
(aa) certified under Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act; or
(bb) certified by another municipal, state,
federal, or other certification for disadvantaged
businesses; or
(cc) submit an affidavit showing that the
vendor meets the eligibility criteria for a
certification program such as those in subdivision
(aa) or (bb); or
(dd) if the vendor is a nonprofit, meet any of
the criteria in subdivision (aa), (bb), or (cc) or
is controlled by a board of directors that
consists of 51% or greater individuals who are
minorities, women, or persons with a disability as
defined by the Business Enterprise for Minorities,
Women, and Persons with a Disability Act.
(ii) Ensuring that program implementation
contractors and energy efficiency installation vendors
pay employees working on energy efficiency programs at

HB3101 - 86 - LRB102 15747 SPS 21113 b
or above the prevailing wage rate when such a wage rate
has been published by the Illinois Department of Labor
and pay employees working on energy efficiency
programs at or above the median wage rate for a similar
job description in the nearest metropolitan area when
there is no applicable published prevailing wage rate.
If necessary, utilities may conduct surveys to
establish the median wage rate for a given job
description. Utilities shall establish reporting
procedures for vendors that ensure compliance with
this subsection, but are structured to avoid, wherever
possible, placing an undue administrative burden on
vendors.
(iii) Ensuring that program implementation
contractor employees and energy efficiency
installation vendor employees are proportional to the
population of BIPOC persons, within the utility's
territory, as updated every 2 years.
(iv) Ensuring that 30% or more of the energy
efficiency installation vendor employees working for
vendors reporting to each program implementation
contractor are graduates or trainees from
equity-focused workforce training programs designated
by the Illinois Power Agency or similar programs
offering equivalent certifications.
(v) Ensuring that vendors who are very small

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businesses of 5 or fewer full-time employees or
businesses that have completed or are participating in
contractor incubator programs or entrepreneurship
programs designated by the Illinois Power Agency,
receive a substantial portion of program portfolio
funding. Utility plans to achieve this shall include
efforts to provide the necessary training and
administrative support needed for very small
businesses to meet utility-mandated training,
certification, insurance, and security-related
contract requirements.
(9.6) Utilities shall collect data necessary to ensure
compliance with paragraph (9.5) no less than quarterly and
shall communicate progress toward compliance with
paragraph (9.5) to program implementation contractors and
energy efficiency installation vendors no less than
quarterly. When it seems unlikely that the criteria in
paragraph (9.5) will be met, utilities shall work with
relevant vendors, providing education, training, and other
resources needed to ensure compliance and, where
necessary, adjusting or terminating work with vendors that
cannot assist with compliance.
(10) Utilities required to implement efficiency
programs under subsections (b-5) and (b-10) shall report
annually to the Illinois Commerce Commission and the
General Assembly on how hiring, contracting, job training,

HB3101 - 88 - LRB102 15747 SPS 21113 b
and other practices related to its energy efficiency
programs enhance the diversity of vendors working on such
programs. These reports must include data on vendor and
employee diversity, including data on the implementation
of paragraphs (9.5) and (9.6). If the utility is not
meeting the requirements of paragraphs (9.5) and (9.6),
the utility shall submit a plan to adjust their activities
so that they meet the requirements of paragraphs (9.5) and
(9.6) within the following year.
(h) No more than 6% of energy efficiency and
demand-response program revenue may be allocated for research,
development, or pilot deployment of new equipment or measures.
(i) When practicable, electric utilities shall incorporate
advanced metering infrastructure data into the planning,
implementation, and evaluation of energy efficiency measures
and programs, subject to the data privacy and confidentiality
protections of applicable law.
(j) The independent evaluator shall follow the guidelines
and use the savings set forth in Commission-approved energy
efficiency policy manuals and technical reference manuals, as
each may be updated from time to time. Until such time as
measure life values for energy efficiency measures implemented
for low-income households under subsection (c) of this Section
are incorporated into such Commission-approved manuals, the
low-income measures shall have the same measure life values
that are established for same measures implemented in

HB3101 - 89 - LRB102 15747 SPS 21113 b
households that are not low-income households.
(k) Notwithstanding any provision of law to the contrary,
an electric utility subject to the requirements of this
Section may file a tariff cancelling an automatic adjustment
clause tariff in effect under this Section or Section 8-103,
which shall take effect no later than one business day after
the date such tariff is filed. Thereafter, the utility shall
be authorized to defer and recover its expenditures incurred
under this Section through a new tariff authorized under
subsection (d) of this Section or in the utility's next rate
case under Article IX or Section 16-108.5 of this Act, with
interest at an annual rate equal to the utility's weighted
average cost of capital as approved by the Commission in such
case. If the utility elects to file a new tariff under
subsection (d) of this Section, the utility may file the
tariff within 10 days after June 1, 2017 (the effective date of
Public Act 99-906), and the cost inputs to such tariff shall be
based on the projected costs to be incurred by the utility
during the calendar year in which the new tariff is filed and
that were not recovered under the tariff that was cancelled as
provided for in this subsection. Such costs shall include
those incurred or to be incurred by the utility under its
multi-year plan approved under subsections (f) and (g) of this
Section, including, but not limited to, projected capital
investment costs and projected regulatory asset balances with
correspondingly updated depreciation and amortization reserves

HB3101 - 90 - LRB102 15747 SPS 21113 b
and expense. The Commission shall, after notice and hearing,
approve, or approve with modification, such tariff and cost
inputs no later than 75 days after the utility filed the
tariff, provided that such approval, or approval with
modification, shall be consistent with the provisions of this
Section to the extent they do not conflict with this
subsection (k). The tariff approved by the Commission shall
take effect no later than 5 days after the Commission enters
its order approving the tariff.
No later than 60 days after the effective date of the
tariff cancelling the utility's automatic adjustment clause
tariff, the utility shall file a reconciliation that
reconciles the moneys collected under its automatic adjustment
clause tariff with the costs incurred during the period
beginning June 1, 2016 and ending on the date that the electric
utility's automatic adjustment clause tariff was cancelled. In
the event the reconciliation reflects an under-collection, the
utility shall recover the costs as specified in this
subsection (k). If the reconciliation reflects an
over-collection, the utility shall apply the amount of such
over-collection as a one-time credit to retail customers'
bills.
(l) (Blank). For the calendar years covered by a
multi-year plan commencing after December 31, 2017,
subsections (a) through (j) of this Section do not apply to any
retail customers of an electric utility that serves more than

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3,000,000 retail customers in the State and whose total
highest 30 minute demand was more than 10,000 kilowatts, or
any retail customers of an electric utility that serves less
than 3,000,000 retail customers but more than 500,000 retail
customers in the State and whose total highest 15 minute
demand was more than 10,000 kilowatts. For purposes of this
subsection (l), "retail customer" has the meaning set forth in
Section 16-102 of this Act. A determination of whether this
subsection is applicable to a customer shall be made for each
multi-year plan beginning after December 31, 2017. The
criteria for determining whether this subsection (l) is
applicable to a retail customer shall be based on the 12
consecutive billing periods prior to the start of the first
year of each such multi-year plan.
(m) Notwithstanding the requirements of this Section, as
part of a proceeding to approve a multi-year plan under
subsections (f) and (g) of this Section if the multi-year plan
has been designed to maximize savings, but does not meet the
cost cap limitations of this subsection, the Commission shall
reduce the amount of energy efficiency measures implemented
for any single year, and whose costs are recovered under
subsection (d) of this Section, by an amount necessary to
limit the estimated average net increase due to the cost of the
measures to no more than
(1) 3.5% for each of the 4 years beginning January 1,
2018,

HB3101 - 92 - LRB102 15747 SPS 21113 b
(2) (blank), 3.75% for each of the 4 years beginning
January 1, 2022, and
(3) 4% for each of the 4 5 years beginning January 1,
2022 2026,
(4) 4.25% for the 4 years beginning January 1, 2026,
and
(5) 4.25% plus an increase sufficient to account for
the rate of inflation between January 1, 2026 and January
1 of the first year of each subsequent 4-year plan cycle,
of the average amount paid per kilowatthour by residential
eligible retail customers during calendar year 2015. An
electric utility may plan to spend up to 10% more in any year
during an applicable multi-year plan period to
cost-effectively achieve additional savings so long as the
average over the applicable multi-year plan period does not
exceed the percentages defined in items (1) through (5). To
determine the total amount that may be spent by an electric
utility in any single year, the applicable percentage of the
average amount paid per kilowatthour shall be multiplied by
the total amount of energy delivered by such electric utility
in the calendar year 2015, adjusted to reflect the proportion
of the utility's load attributable to customers who are exempt
from subsections (a) through (j) of this Section under
subsection (l) of this Section. For purposes of this
subsection (m), the amount paid per kilowatthour includes,
without limitation, estimated amounts paid for supply,

HB3101 - 93 - LRB102 15747 SPS 21113 b
transmission, distribution, surcharges, and add-on taxes. For
purposes of this Section, "eligible retail customers" shall
have the meaning set forth in Section 16-111.5 of this Act.
Once the Commission has approved a plan under subsections (f)
and (g) of this Section, no subsequent rate impact
determinations shall be made.
(Source: P.A. 100-840, eff. 8-13-18; 101-81, eff. 7-12-19.)
(220 ILCS 5/8-104.1 new)
Sec. 8-104.1. Gas utilities; annual savings goals.
(a) It is the policy of the State that gas utilities are
required to use cost-effective energy efficiency to reduce
delivery load. Requiring investment in cost-effective energy
efficiency will reduce direct and indirect costs to consumers
by decreasing environmental impacts and by reducing the amount
of natural gas that needs to be purchased and avoiding or
delaying the need for new transmission, distribution, storage
and other related infrastructure. It serves the public
interest to allow gas utilities to recover costs for
reasonably and prudently incurred expenditures for energy
efficiency measures.
(b) In this Section:
"Cost-effective" means that the measures satisfy the total
resource cost test that, for purposes of this Section, means a
standard that is met if, for an investment in energy
efficiency, the benefit-cost ratio is greater than one. The

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benefit-cost ratio is the ratio of the net present value of the
total benefits of the measures to the net present value of the
total costs as calculated over the lifetime of the measures.
The total resource cost test compares the sum of avoided
natural gas utility costs, representing the benefits that
accrue to the natural gas system and the participant in the
delivery of those efficiency measures and including avoided
costs associated with the use of electricity or other fuels,
avoided cost associated with reduced water consumption, and
avoided costs associated with reduced operation and
maintenance costs, as well as other quantifiable societal
benefits, to the sum of all incremental costs of end-use
measures (including both utility and participant
contributions), plus costs to administer, deliver, and
evaluate each demand-side measure, to quantify the net savings
obtained by substituting demand-side measures for supply
resources. In calculating avoided costs, reasonable estimates
shall be included for financial costs likely to be imposed by
future regulation of emissions of greenhouse gases. In
discounting future societal costs and benefits for the purpose
of calculating net present values, a societal discount rate
based on actual, long-term Treasury bond yields shall be used.
The low-income measures described in subsection (f) of this
Section shall not be required to meet the total resource cost
test.
"Cumulative persisting annual savings" means the total gas

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energy savings in a given year from measures installed in that
year or in previous years, but no earlier than January 1, 2022,
that are still operational and providing savings in that year
because the measures have not yet reached the end of their
useful lives.
"Energy efficiency" means measures that reduce the amount
of energy required to achieve a given end use. "Energy
efficiency" also includes measures that reduce the total Btus
of electricity and natural gas needed to meet the end use or
uses. "Black, indigenous, and people of color" and "BIPOC"
means people who are members of the groups described in
subparagraphs (a) through (e) of paragraph (A) of subsection
(1) of Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(c) This Section applies to all gas distribution utilities
in the State for those multi-year plans that include energy
efficiency programs commencing after December 31, 2022.
(d) Beginning in 2023, gas utilities subject to this
Section shall achieve the following cumulative persisting
annual savings goals, as compared to a deemed baseline
equivalent to the utility's average annual therm throughput in
2016 through 2020 through the implementation of energy
efficiency measures during the applicable year and in prior
years, but no earlier than January 1, 2023:
(1) 1.2% cumulative persisting annual savings for the
year ending December 31, 2023;

HB3101 - 96 - LRB102 15747 SPS 21113 b
(2) 2.1% cumulative persisting annual savings for the
year ending December 31, 2024;
(3) 3.0% cumulative persisting annual savings for the
year ending December 31, 2025;
(4) 3.9% cumulative persisting annual savings for the
year ending December 31, 2026;
(5) 4.8% cumulative persisting annual savings for the
year ending December 31, 2027;
(6) 5.7% cumulative persisting annual savings for the
year ending December 31, 2028;
(7) 6.6% cumulative persisting annual savings for the
year ending December 31, 2029;
(8) 7.4% cumulative persisting annual savings for the
year ending December 31, 2030;
(9) 8.2% cumulative persisting annual savings for the
year ending December 31, 2031;
(10) 9.0% cumulative persisting annual savings for the
year ending December 31, 2032;
(11) 9.8% cumulative persisting annual savings for the
year ending December 31, 2033;
(12) 10.6% cumulative persisting annual savings for
the year ending December 31, 2034;
(13) 11.4% cumulative persisting annual savings for
the year ending December 31, 2035;
(14) 12.1% cumulative persisting annual savings for
the year ending December 31, 2036; and

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(15) 12.8% cumulative persisting annual savings for
the year ending December 31, 2037.
No later than December 31, 2025, the Illinois Commerce
Commission shall establish additional cumulative persisting
annual savings goals for the years 2037 through 2041. The
Commission shall also establish additional cumulative
persisting annual savings goals every 5 years thereafter to
ensure utilities always have goals that extend at least 11
years into the future. The cumulative persisting annual
savings goals beyond the year 2035 shall increase by 0.6
percentage points per year absent a Commission decision to
initiate a proceeding to consider establishing goals that
increase by more or less than that amount. Such a proceeding
must be conducted in accordance with the procedures described
in subsection (f) of this Section. If such a proceeding is
initiated, the cumulative persisting annual savings goals
established by the Commission through that proceeding shall
reflect the Commission's best estimate of the maximum amount
of additional gas savings that are forecast to be
cost-effectively achievable unless such best estimates would
result in goals that represent less than 0.4 percentage point
annual increases in total cumulative persisting annual
savings. The Commission may only establish goals that
represent less than 0.4 percentage point annual increases in
cumulative persisting annual savings if it can demonstrate,
based on clear and convincing evidence, that 0.4 percentage

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point increases are not cost-effectively achievable. The
Commission shall inform its decision based on an energy
efficiency potential study that conforms to the requirements
of subsection (j-5) of this Section.
(e) If a gas utility jointly offers an energy efficiency
measure or program with an electric utility under plans
approved under this Section and Section 8-103B of this Act,
the gas utility may continue offering the program, including
the electric energy efficiency measures, if the electric
utility discontinues funding the program. In that event, the
energy-savings value associated with such other fuels shall be
converted to gas energy savings on an equivalent Btu basis for
the premises. However, the gas utility shall prioritize
programs for low-income residential customers to the extent
practicable. A gas utility may recover the costs of offering
the gas energy efficiency measures under this subsection (e).
For those energy efficiency measures or programs that save
both gas and other fuels but are not jointly offered with an
electric utility under plans approved under this Section and
Section 8-103B, the gas utility may count savings of fuels
other than gas toward the achievement of its annual savings
goal, and the energy-savings value associated with such other
fuels shall be converted to gas energy savings on an
equivalent Btu basis at the premises.
In no event shall more than 10% of each year's applicable
annual total savings requirement as defined in paragraph (8)

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of subsection (j) of this Section be met through savings of
fuels other than gas.
(f) Gas utilities are responsible for overseeing the
design, development, and filing of energy efficiency plans
with the Commission and may, as part of that implementation,
outsource various aspects of program development and
implementation. A minimum of 10% of the utility's entire
portfolio funding level for a given year shall be used to
procure cost-effective energy efficiency measures from units
of local government, municipal corporations, school districts,
public housing, community college districts, and
nonprofit-owned buildings provided that a minimum percentage
of available funds shall be used to procure energy efficiency
from public housing, which percentage shall be equal to public
housing's share of public building energy consumption.
The utilities shall also implement energy efficiency
measures targeted at low-income single-family and multifamily
households, which, as used in this Section, means households
at or below 80% of area median income, and expenditures to
implement the measures shall be no less than 25% of the
utility's total efficiency portfolio budget.
At least 70% of spending on programs targeted at
low-income households shall go toward integrated whole
building efficiency programs, as defined in subsection (g), or
individual measures that reduce space heating needs through
improvements to the building envelope, heating distribution

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systems, or heating system controls. In implementing these
programs, utilities shall ensure that thermal insulating
materials used in the building envelope do not contain any
substance that is a Category 1 respiratory sensitizer as
defined by Appendix A to 29 CFR 1910.1200 (Health Hazard
Criteria: A.4 Respiratory or Skin Sensitization) that was
intentionally added or is present at greater than 0.1% (1000
ppm) by weight in the product. Programs targeted at low-income
households, which address single-family and multifamily
buildings shall be treated such that forecast savings to be
achieved in each building type are approximately in
proportional to the magnitude of cost-effective energy
efficiency opportunities in these respective building types.
Each gas utility shall assess opportunities to implement
cost-effective energy efficiency measures and programs through
a public-housing authority or authorities located in its
service territory. If such opportunities are identified, the
utility shall propose such measures and programs to address
the opportunities. Expenditures to address such opportunities
shall be credited toward the minimum procurement and
expenditure requirements set forth in this subsection (f).
Implementation of energy efficiency measures and programs
targeted at low-income households shall be contracted, when it
is practical, to independent third parties that have
demonstrated capabilities to serve such households, with a
preference for not-for-profit entities and government agencies

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that have existing relationships with or experience serving
low-income communities in the State.
Each gas utility shall develop and implement reporting
procedures that address and assist in determining the amount
of energy savings that can be applied to the low-income
procurement and expenditure requirements set forth in this
subsection (f). Each gas utility shall also track the types
and quantities or volumes of insulation and air sealing
materials, and their associated energy saving benefits,
installed in energy efficiency programs targeted at low-income
single-family and multifamily households.
Each gas utility shall implement a health and safety fund
of a minimum of 0.5% of the utility's entire portfolio funding
level for a given year, that shall be used for the purpose of
making grants for technical assistance, construction,
reconstruction, improvement, or repair of buildings to
facilitate their participation in the energy efficiency
programs targeted at low-income single-family and multifamily
households. These funds may also be used for the purpose of
making grants for technical assistance, construction,
reconstruction, improvement, or repair of the following
buildings to facilitate their participation in the energy
efficiency programs created by this Section: (1) buildings
that are owned or operated by registered 501(c)(3) public
charities; and (2) day care centers, day care homes, or group
day care homes, as defined by 89 Ill. Adm. Code Part 406, 407,

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or 408, respectively.
The gas utilities shall participate in a low-income energy
efficiency accountability committee ("the committee"), which
will directly inform the design, implementation, and
evaluation of the low-income and public-housing energy
efficiency programs. The committee shall be composed of the
electric utilities subject to the requirements of Section
8-103B of this Act, the gas utilities subject to the
requirements of this Section, the utilities' low-income energy
efficiency implementation contractors, nonprofit
organizations, community action agencies, advocacy groups,
State and local governmental agencies, public-housing
organizations, and representatives of community-based
organizations, especially those living in or working with
environmental justice communities and BIPOC communities. The
committee shall be composed of a statewide leadership
committee and 2 geographically differentiated subcommittees:
one for stakeholders in northern Illinois and one for
stakeholders in central and southern Illinois. The
subcommittees shall meet together at least twice per year.
There shall be a statewide leadership committee led by and
composed of community-based organizations that are
representative of BIPOC and environmental justice communities
and that includes equitable representation from BIPOC
communities. The leadership committee shall be composed of an
equal number of representatives from the 2 subcommittees.

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The subcommittees shall address specific programs and
issues, with the leadership committee convening targeted
workgroups as needed. The leadership committee may elect to
work with an independent facilitator to solicit and organize
feedback, recommendations and meeting participation from a
wide variety of community-based stakeholders. If a facilitator
is used, they shall be fair and responsive to the needs of all
stakeholders involved in the committee.
All committee meetings must be accessible, with rotating
locations if meetings are held in-person, virtual
participation options, and materials and agendas circulated
well in advance.
There shall also be opportunities for direct input by
committee members outside of committee meetings, such as via
individual meetings, surveys, emails and calls, to ensure
robust participation by stakeholders with limited capacity and
ability to attend committee meetings. Committee meetings shall
emphasize opportunities to bundle and coordinate delivery of
low-income energy efficiency with other programs that serve
low-income communities, such as Solar for All and bill payment
assistance programs. Meetings shall include educational
opportunities for stakeholders to learn more about these
additional offerings, and the committee shall assist in
figuring out the best methods for coordinated delivery and
implementation of offerings when serving low-income
communities. The committee shall directly and equitably

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influence and inform utility low-income and public-housing
energy efficiency programs and priorities.
Participating utilities shall implement recommendations
from the committee whenever possible. Participating utilities
shall track and report how input from the committee has led to
new approaches and changes in their energy efficiency
portfolios. This reporting shall occur at committee meetings
and in quarterly energy efficiency reports to the Stakeholder
Advisory Group and Illinois Commerce Commission, and other
relevant reporting mechanisms. Participating utilities shall
also report on relevant equity data and metrics requested by
the committee, such as energy burden data, geographic, racial,
and other relevant demographic data on where programs are
being delivered and what populations programs are serving.
The Illinois Commerce Commission shall oversee and have
relevant staff participate in the committee. The committee
shall have a budget of 0.25% of each utility's entire
efficiency portfolio funding for a given year. The budget
shall be overseen by the Commission. The budget shall be used
to provide grants for community-based organizations serving on
the leadership committee, stipends for community-based
organizations participating in the committee, grants for
community-based organizations to do energy efficiency outreach
and education, and relevant meeting needs as determined by the
leadership committee. The education and outreach shall
include, but is not limited to, basic energy efficiency

HB3101 - 105 - LRB102 15747 SPS 21113 b
education, information about low-income energy efficiency
programs, and information on the committee's purpose,
structure, and activities.
(g) At least 50% of the entire efficiency program
portfolio budget shall be spent on any combination of (1)
heating energy savings from integrated, residential or
nonresidential, new or existing whole building efficiency
programs; and (2) individual heating measures in residential
or nonresidential buildings, new or existing, that reduce the
amount of space heating needs through improvements to the
efficiency of building envelopes (including, but not limited
to, insulation measures, efficient windows and air leakage
reduction), improvements to systems for distributing heat
(including, but not limited to, duct leakage reduction, duct
insulation or pipe insulation) in buildings, improvements to
ventilation systems (including, but not limited to heat
recovery ventilation and demand control ventilation measures)
or improvements to controls of heating equipment (including,
but not limited to, advanced thermostats). Spending on
efficient furnaces, efficient boilers, or other efficient
heating equipment measures outside of or separate from
integrated whole building efficiency programs is permitted
within the efficiency program portfolio, but does not count
toward the minimum spending requirement in this subsection
(g). Spending on integrated whole building efficiency programs
targeted to low-income customers, as well as spending on

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individual building envelope, heating distribution system,
ventilation system and heating system control measures
installed in low-income homes does count toward this
requirement. The portion of portfolio spending on program
marketing, training of installers, audits of buildings,
inspections of work performed, and other administrative and
technical expenses that are clearly tied to promotion and
delivery of integrated whole building efficiency programs or
installation of individual building envelope, heating
distribution system, ventilation system or heating system
control measures shall count toward this requirement. If this
minimum requirement is not met, any performance incentive
earned under paragraph (7) of subsection (j) should be reduced
by the percentage point level of shortfall in meeting this
requirement; if the utility is subject to a performance
penalty, then the magnitude of the penalty shall be increased
by the percentage point shortfall in meeting this requirement.
As used in this subsection (g), "integrated whole building
efficiency programs" means programs designed to optimize the
heating efficiency of buildings by comprehensively and
simultaneously addressing cost-effective energy-savings
opportunities associated with heating equipment, heating
distribution systems, heating system controls, ventilation
systems and building envelopes; such programs may be targeted
to existing buildings or to construction of new buildings.
(h) Notwithstanding any other provision of law to the

HB3101 - 107 - LRB102 15747 SPS 21113 b
contrary, a utility providing approved energy efficiency
measures in the State shall be permitted to recover all
reasonable and prudently incurred costs of those measures from
all distribution system customers, provided that nothing in
this subsection (h) permits the double recovery of such costs
from customers.
(i) Beginning in 2022, each gas utility shall file an
energy efficiency plan with the Commission to meet the energy
efficiency standards for the next applicable multi-year period
beginning January 1 of the year following the filing,
according to the schedule set forth in paragraphs (1) through
(5) of this subsection (i). If a utility does not file such a
plan on or before the applicable filing deadline for the plan,
it shall face a penalty of $100,000 per day until the plan is
filed.
(1) No later March 1, 2022, each gas utility shall
file a 3-year energy efficiency plan commencing on January
1, 2023 that is designed to achieve the cumulative
persisting annual savings goals specified in paragraphs
(1) through (3) of subsection (d) of this Section through
implementation of energy efficiency measures; however, the
goals may be reduced if the plan's analysis and forecasts
of the utility's ability to acquire energy savings
demonstrate beyond a reasonable doubt that achievement of
such goals is not cost-effective. Annual increases in
cumulative persisting annual savings goals during the

HB3101 - 108 - LRB102 15747 SPS 21113 b
applicable 3-year plan period shall not be reduced to
amounts that are less than the maximum amount of
cumulative persisting annual savings that is forecast to
be cost-effectively achievable during the 3-year plan
period. The Commission shall review any proposed goal
reduction as part of its review and approval of the
utility's proposed plan, taking into account the results
of the potential study required by subsection (j-5) of
this Section.
(2) No later than March 1, 2025, each gas utility
shall file a 4-year energy efficiency plan commencing on
January 1, 2026 that is designed to achieve the cumulative
persisting annual savings goals specified in paragraphs
(4) through (7) of subsection (d) of this Section through
implementation of energy efficiency measures; however, the
goals may be reduced if each of the following conditions
are met: (A) the plan's analysis and forecasts of the
utility's ability to acquire energy savings demonstrate
beyond a reasonable doubt that achievement of such goals
is not cost-effective; and (B) the amount of energy
savings achieved by the utility as determined by the
independent evaluator for the most recent year for which
savings have been evaluated preceding the plan filing was
less than the average annual amount of savings required to
achieve the goals for the applicable 4-year plan period.
Annual increases in cumulative persisting annual savings

HB3101 - 109 - LRB102 15747 SPS 21113 b
goals during the applicable 4-year plan period shall not
be reduced to amounts that are less than the maximum
amount of cumulative persisting annual savings that is
forecast to be cost-effectively achievable during the
4-year plan period. The Commission shall review any
proposed goal reduction as part of its review and approval
of the utility's proposed plan, taking into account the
results of the potential study required by subsection
(j-5) of this Section.
(3) No later than March 1, 2029, each gas utility
shall file a 4-year energy efficiency plan commencing on
January 1, 2030 that is designed to achieve the cumulative
persisting annual savings goals specified in paragraphs
(8) through (11) of subsection (d) of this Section through
implementation of energy efficiency measures; however, the
goals may be reduced if each of the following conditions
are met: (A) the plan's analysis and forecasts of the
utility's ability to acquire energy savings demonstrate
beyond a reasonable doubt that achievement of such goals
is not cost-effective; and (B) the amount of energy
savings achieved by the utility as determined by the
independent evaluator for the most recent year for which
savings have been evaluated preceding the plan filing was
less than the average annual amount of savings required to
achieve the goals for the applicable 4-year plan period.
Annual increases in cumulative persisting annual savings

HB3101 - 110 - LRB102 15747 SPS 21113 b
goals during the applicable 4-year plan period shall not
be reduced to amounts that are less than the maximum
amount of cumulative persisting annual savings that is
forecast to be cost-effectively achievable during the
4-year plan period. The Commission shall review any
proposed goal reduction as part of its review and approval
of the utility's proposed plan, taking into account the
results of the potential study required by subsection
(j-5) of this Section.
(4) No later than March 1, beginning in 2033 and each 4
years thereafter, each gas utility shall file a 4-year
energy efficiency plan commencing on January 1, beginning
in 2034 and each 4-year period thereafter, that is
designed to achieve the cumulative persisting annual
savings goals specified in paragraphs (12) through (15) of
subsection (d), as well as goals for subsequent years that
are established by the Illinois Commerce Commission
pursuant to direction of subsection (d) of this Section,
through implementation of energy efficiency measures;
however, the goals may be reduced if each of the following
conditions are met: (A) the plan's analysis and forecasts
of the utility's ability to acquire energy savings
demonstrate beyond a reasonable doubt that achievement of
such goals is not cost-effective; and (B) the amount of
energy savings achieved by the utility as determined by
the independent evaluator for the most recent year for

HB3101 - 111 - LRB102 15747 SPS 21113 b
which savings have been evaluated preceding the plan
filing was less than the average annual amount of savings
required to achieve the goals for the applicable 4-year
plan period. Annual increases in cumulative persisting
annual savings goals during the applicable 4-year plan
period shall not be reduced to amounts that are less than
the maximum amount of cumulative persisting annual savings
that is forecast to be cost-effectively achievable during
the 4-year plan period. The Commission shall review any
proposed goal reduction as part of its review and approval
of the utility's proposed plan, taking into account the
results of the potential study required by subsection
(j-5) of this Section.
Each utility's plan shall set forth the utility's
proposals to meet the energy efficiency standards identified
in subsection (d). The Commission shall seek public comment on
the utility's plan and shall issue an order approving or
disapproving each plan within 6 months after its submission.
If the Commission disapproves a plan, the Commission shall,
within 30 days, describe in detail the reasons for the
disapproval and describe a path by which the utility may file a
revised draft of the plan to address the Commission's concerns
satisfactorily. If the utility does not refile with the
Commission within 60 days, the utility shall be subject to
penalties at a rate of $100,000 per day until the plan is
filed. This process shall continue, and penalties shall

HB3101 - 112 - LRB102 15747 SPS 21113 b
accrue, until the utility has successfully filed a portfolio
of energy efficiency measures. Penalties shall be deposited
into the Energy Efficiency Trust Fund.
(j) In submitting proposed plans and funding levels under
subsection (i) of this Section to meet the savings goals
identified in subsection (d), the utility shall:
(1) Demonstrate that its proposed energy efficiency
measures will achieve the applicable requirements that are
identified in subsection (d) of this Section.
(2) Demonstrate consideration of program options for
(A) advancing new building codes, appliance standards, and
municipal regulations governing existing and new building
efficiency improvements and (B) supporting efforts to
improve compliance with new building codes, appliance
standards and municipal regulations, as potentially
cost-effective means of acquiring energy savings to count
toward savings goals.
(3) Demonstrate that its overall portfolio of
measures, not including low-income programs described in
subsection (f) of this Section, is cost-effective using
the total resource cost test, complies with subsection (i)
of this Section and represents a diverse cross-section of
opportunities for customers of all rate classes, to
participate in the programs. Individual measures need not
be cost-effective.
(3.5) Demonstrate that the utility's plan integrates

HB3101 - 113 - LRB102 15747 SPS 21113 b
the delivery of energy efficiency programs with electric
efficiency programs and other efforts to address bill
payment issues, including, but not limited to, LIHEAP and
the Percent Income Payment Plan, to the extent such
integration is practical and has the potential to enhance
customer engagement, minimize market confusion, or reduce
administrative costs.
(4) Present a third-party energy efficiency
implementation program subject to the following
requirements:
(A) Beginning with the year commencing January 1,
2024, gas utilities shall fund third-party energy
efficiency programs in an amount that is no less than
10% of total efficiency portfolio budgets per year.
(B) For the multi-year plans commencing on January
1, 2023, the utility shall conduct a solicitation
process during 2023 for purposes of requesting
proposals from third-party vendors for those
third-party energy efficiency programs to be offered
during one or more years of the last 2 years of the
2023 to 2025 plan period. For the solicitation
process, the utility shall identify the sector,
technology, or a geographic area for which it is
seeking requests for proposals. The solicitation
process must be for programs that fill gaps in the
utility's program portfolio or target business

HB3101 - 114 - LRB102 15747 SPS 21113 b
sectors, building types, geographies or other specific
parts of its customer base with initiatives that would
be more effective at reaching these customer segments
than the utilities' programs filed in its energy
efficiency plans.
(C) For multi-year plans commencing on January 1,
2026, January 1, 2030, and every 4 years thereafter,
the utility shall conduct a solicitation process
during 2025, 2029, and every 4 years thereafter,
respectively, for purposes of requesting proposals
from third-party vendors for those third-party energy
efficiency programs to be offered during one or more
years of the respective multi-year plan period; for
each solicitation process, the utility shall identify
the sector, technology, or geographic area for which
it is seeking requests for proposals; the solicitation
process must be for programs that fill gaps in the
utility's program portfolio or target business
sectors, building types, geographies or other specific
parts of its customer base with initiatives that would
be more effective at reaching these customer segments
than the utilities' programs filed in its energy
efficiency plans.
(D) The utility shall propose the bidder
qualifications, performance measurement process, and
contract structure, which must include a performance

HB3101 - 115 - LRB102 15747 SPS 21113 b
payment mechanism and general terms and conditions;
the proposed qualifications, process, and structure
shall be subject to Commission approval.
(E) The utility shall retain an independent third
party to score the proposals received through the
solicitation process described in this paragraph (4),
rank them according to their cost per lifetime
kilowatt hours saved, and assemble the portfolio of
third-party programs.
The gas utility shall recover all costs associated
with Commission-approved, third-party administered
programs regardless of the success of those programs.
(5) Include a proposed or revised cost-recovery
mechanism, as provided for under subsection (h) of this
Section, to fund the proposed energy efficiency measures
and to ensure the recovery of the prudently and reasonably
incurred costs of Commission-approved programs.
(6) Provide for an annual independent evaluation of
the performance of the cost-effectiveness of the utility's
portfolio of measures, as well as a full review of the
multi-year plan results of the broader net program impacts
and, to the extent practical, for adjustment of the
measures on a going-forward basis as a result of the
evaluations. The resources dedicated to evaluation shall
not exceed 3% of portfolio resources in any given year.
(7) Each gas utility shall be eligible to earn a

HB3101 - 116 - LRB102 15747 SPS 21113 b
shareholder incentive for effective implementation of its
efficiency programs. The incentive shall be tied to each
utility's annual energy efficiency spending and its
savings relative to its applicable annual total savings
requirement as defined in paragraph (8) of this subsection
(j). There shall be no incentive if the independent
evaluator determines the utility failed to achieve savings
equal to at least 85% of its applicable annual total
savings requirement. The utility shall earn an incentive
equal 0.5% of total annual efficiency spending in the year
being evaluated for every one percentage point above 85%
up to 100% of its applicable annual total savings
requirement that the utility achieved in that year, such
that the utility shall earn an incentive equal to 7.5% of
spending for meeting 100% of its applicable annual total
savings requirement. The utility shall earn an additional
0.3% of spending for every one percentage point above 100%
of its applicable annual total savings requirement
achieved, with a maximum incentive of 15% for achieving
125% of its applicable annual total savings requirement.
(7.5) In this Section, "applicable annual incremental
goal" means the difference between the cumulative
persisting annual savings goal for the calendar year that
is the subject of the independent evaluator's
determination and the cumulative persisting annual savings
goal for the immediately preceding calendar year, as such

HB3101 - 117 - LRB102 15747 SPS 21113 b
goals are defined in subsection (d) of this Section. Under
subsection (d) of this Section, a utility must first
replace energy savings from measures that have expired and
would otherwise have to be replaced to meet the applicable
savings goals identified in subsection (d) of this Section
before any progress toward achievement of its applicable
annual incremental goal may be counted. Savings may expire
because measures installed in previous years have reached
the end of their lives, because measures installed in
previous years are producing lower savings in the current
year than in the previous year or for other reasons
identified by independent evaluators. Notwithstanding
anything else set forth in this Section, the difference
between the actual annual incremental savings achieved in
any given year, including the replacement of energy
savings that have expired, and the applicable annual
incremental goal shall not affect adjustments to the
return on equity for subsequent calendar years under this
subsection (j).
(8) In this Section, "applicable annual total savings
requirement" means the total amount of new annual savings
that the utility must achieve in any given year to achieve
the applicable annual incremental goal. This shall be
equal to the applicable annual incremental goal plus the
total new annual savings that are required to replace
savings that expired in or at the end of the previous year.

HB3101 - 118 - LRB102 15747 SPS 21113 b
(9) The utility shall submit the energy-savings data
to the independent evaluator no later than 30 days after
the close of the plan year. The independent evaluator
shall determine the cumulative persisting annual savings
and the utility's performance relative to its applicable
annual total savings requirement for a given plan year no
later than 120 days after the close of the plan year. The
independent evaluator must also estimate the job impacts
and other macroeconomic impacts of the utility's
efficiency programs. The utility shall submit an
informational filing to the Commission no later than 160
days after the close of the plan year that attaches the
independent evaluator's final report identifying the
cumulative persisting annual savings for the year and
calculates, under paragraph (7) of this subsection (j), as
applicable, the magnitude of any shareholder incentive
that the utility has earned.
(9.5) The utility must demonstrate how it will ensure
that program implementation contractors and energy
efficiency installation vendors will meet multiple
workforce equity building criteria, including, but not
limited to:
(i) Ensuring that an amount of program portfolio
incentive funding proportional to the population of
BIPOC persons within the utility's territory, as
updated every 2 years, is administered or installed by

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energy efficiency installation vendors who meet one of
the following criteria:
(aa) certified under Section 2 of the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act; or
(bb) certified by another municipal, state,
federal, or other certification for disadvantaged
businesses; or
(cc) submit an affidavit showing that the
vendor meets the eligibility criteria for a
certification program such as those in subdivision
(aa) or (bb); or
(dd) if the vendor is a nonprofit, meet any of
the criteria in subdivision (aa), (bb), or (cc) or
is controlled by a board of directors that
consists of 51% or greater BIPOC persons.
(ii) Ensuring that program implementation
contractors and energy efficiency installation vendors
pay employees working on energy efficiency programs at
or above the prevailing wage rate when such a wage rate
has been published by the Illinois Department of Labor
and pay employees working on energy efficiency
programs at or above the median wage rate for a similar
job description in the nearest metropolitan area when
there is no applicable published prevailing wage rate.
If necessary, utilities may conduct surveys to

HB3101 - 120 - LRB102 15747 SPS 21113 b
establish the median wage rate for a given job
description. Utilities shall establish reporting
procedures for vendors that ensure compliance with
this subsection, but are structured to avoid, wherever
possible, placing an undue administrative burden on
vendors.
(iii) Ensuring that program implementation
contractor employees and energy efficiency
installation vendor employees are proportional to the
population of people of color, as defined in
subparagraphs (a) through (e) of paragraph (A)(1) of
Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act, within the
utility's territory, as updated every 2 years.
(iv) Ensuring that 30% or more of the energy
efficiency installation vendor employees working for
vendors reporting to each program implementation
contractor are graduates or trainees from
equity-focused workforce training programs designated
by the Illinois Power Agency or similar programs
offering equivalent certifications.
(v) Ensuring that vendors who are very small
businesses of 5 or fewer full-time employees or
businesses that have completed or are participating in
contractor incubator programs or entrepreneurship
programs designated by the Illinois Power Agency,

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receive a substantial portion of program portfolio
funding. Utility plans to achieve this shall include
efforts to provide the necessary training and
administrative support needed for very small
businesses to meet utility-mandated training,
certification, insurance, and security-related
contract requirements.
(9.6) Utilities shall collect data necessary to ensure
compliance with paragraph (9.5) no less than quarterly and
shall communicate progress toward compliance with
paragraph (9.5) to program implementation contractors and
energy efficiency installation vendors no less than
quarterly. When it seems unlikely that the criteria in
paragraph (9.5) will be met, utilities shall work with
relevant vendors, providing education, training, and other
resources needed to ensure compliance and, where
necessary, adjusting or terminating work with vendors that
cannot assist with compliance.
(10) A utility required to implement efficiency
programs under this Section shall report annually to the
Illinois Commerce Commission and the General Assembly on
how hiring, contracting, job training, and other practices
related to its energy efficiency programs enhance the
diversity of vendors working on such programs. These
reports must include data on vendor and employee
diversity, including data on the implementation of

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paragraphs (9.5) and (9.6). If the utility is not meeting
the requirements of paragraphs (9.5) and (9.6), the
utility shall submit a plan to adjust their activities so
that they meet the requirements of paragraphs (9.5) and
(9.6) within the following year.
(j-5) Energy efficiency potential study. An energy
efficiency potential study shall be commissioned and overseen
by the Illinois Commerce Commission. The potential study shall
be a dual fuel study, addressing both gas and electric
efficiency potential, such that the requirements both in this
subsection (j-5) and in subsection (f-5) of Section 8-103B are
met in an integrated and cost-efficient manner. The potential
study shall be designed and conducted with input from a
Potential Study Stakeholder Committee established by the
Commission. This Committee shall be composed of
representatives from each electric utility, the Illinois
Attorney General's office, at least 2 environmental
stakeholders, at least one community-based organization, and
additional parties representing consumers. The Committee shall
provide input, at a minimum, into the scope of work for the
studies, the selection of vendors to perform the studies in
accordance with appropriate confidentiality and conflict of
interest provisions, and draft work products. The Committee
shall make best efforts to achieve consensus on the key
elements of the potential study, including:
(i) savings potential from efficiency measures and

HB3101 - 123 - LRB102 15747 SPS 21113 b
program concepts that are known at the time of the study;
(ii) likely emergence of new technology or new program
concepts that could emerge, including proxies for new
technologies or program concepts that cannot be
specifically named, identified, or characterized at the
time of the study;
(iii) likely savings potential from efficiency
measures that may be unique to individual industries or
individual facilities; and
(iv) the experience of other similar utilities, areas
and jurisdictions in maximizing achievement of
cost-effective savings.
When the committee is not able to reach consensus, the
Commission shall make the final decision.
(k) No more than 6% of energy efficiency and
demand-response program revenue may be allocated for research,
development, or pilot deployment of new equipment or measures.
(l) When practical, gas utilities shall incorporate
advanced metering infrastructure data into the planning,
implementation, and evaluation of energy efficiency measures
and programs, subject to the data privacy and confidentiality
protections of applicable law.
(m) The independent evaluator shall follow the guidelines
and use the savings set forth in Commission-approved energy
efficiency policy manuals and technical reference manuals, as
each may be updated from time to time. Until measure life

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values for energy efficiency measures implemented for
low-income households under subsection (f) of this Section are
incorporated into such Commission-approved manuals, the
low-income measures shall have the same measure life values
that are established for same measures implemented in
households that are not low-income households.
(220 ILCS 5/16-128B)
Sec. 16-128B. Qualified energy efficiency installers.
(a) Within 18 months after the effective date of this
amendatory Act of the 99th General Assembly, the Commission
shall adopt rules, including emergency rules, establishing a
process for entities installing energy efficiency measures to
certify compliance with the requirements of this Section.
The process shall include an option to complete the
certification electronically by completing forms on-line. An
entity installing energy efficiency measures shall be
permitted to complete the certification after the subject work
has been completed.
The Commission shall maintain on its website a list of
entities installing energy efficiency measures that have
successfully completed the certification process.
(b) In addition to any authority granted to the Commission
under this Act, the Commission may:
(1) determine which entities are subject to
certification under this Section;

HB3101 - 125 - LRB102 15747 SPS 21113 b
(2) impose reasonable certification fees and
penalties;
(3) adopt disciplinary procedures;
(4) investigate any and all activities subject to this
Section, including violations thereof;
(5) adopt procedures to issue or renew, or to refuse
to issue or renew, a certification or to revoke, suspend,
place on probation, reprimand, or otherwise discipline a
certified entity under this Act or take other enforcement
action against an entity subject to this Section; and
(6) prescribe forms to be issued for the
administration and enforcement of this Section.
(c) An electric utility may not provide a retail customer
with a rebate or other energy efficiency incentive for a
measure that exceeds a minimal amount determined by the
Commission unless the customer provides the electric utility
with (1) a certification that the person installing the energy
efficiency measure was a self-installer; or (2) evidence that
the energy efficiency measure was installed by an entity
certified under this Section that is also in good standing
with the Commission.
(d) The Commission shall:
(1) require entities installing energy efficiency
measures to be certified to do business and to be bonded in
this State;
(2) ensure that entities installing energy efficiency

HB3101 - 126 - LRB102 15747 SPS 21113 b
measures have the requisite knowledge, skill, training,
experience, and competence to perform functions in a safe
and reliable manner as required under subsection (a) of
Section 16-128 of this Act;
(3) ensure that entities installing energy efficiency
measures conform to applicable building and electrical
codes;
(4) ensure that all entities installing energy
efficiency measures meet recognized industry standards as
the Commission deems appropriate;
(5) include any additional requirements that the
Commission deems reasonable to ensure that entities
installing energy efficiency measures meet adequate
training, financial, and competency requirements;
(6) ensure that all entities installing energy
efficiency measures obtain certificates of insurance in
sufficient amounts and coverages that the Commission so
determines; and
(7) identify and determine the training or other
programs by which persons or entities may obtain the
requisite training, skill, or experience necessary to
achieve and maintain compliance with the requirements of
this Section.
(e) Fees and penalties collected under this Section shall
be deposited into the Public Utility Fund and used to fund the
Commission's compliance with the obligations imposed by this

HB3101 - 127 - LRB102 15747 SPS 21113 b
Section.
(f) The rules adopted under this Section shall specify the
initial dates for compliance with the rules.
(g) For purposes of this Section, entities installing
energy efficiency measures shall endeavor to support the
diversity goals of this State by attracting, developing,
retaining, and providing opportunities to employees of all
backgrounds and by supporting women-owned female-owned, black,
indigenous, and people of color-owned minority-owned, and
veteran-owned, and small businesses, and nonprofit
organizations, worker-owned cooperatives, and other entities.
(Source: P.A. 99-906, eff. 6-1-17.)
Section 99. Effective date. This Act takes effect upon
becoming law.
HB3101 - 128 - LRB102 15747 SPS 21113 b
INDEX
Statutes amended in order of appearance