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| Public Act 098-0586
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| SB2350 Enrolled | LRB098 10156 CEL 40315 b |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Public Utilities Act is amended by changing |
Sections 16-111.7 and 19-140 as follows:
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(220 ILCS 5/16-111.7)
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Sec. 16-111.7. On-bill financing program; electric |
utilities. |
(a) The Illinois General Assembly finds that Illinois homes |
and businesses have the potential to save energy through |
conservation and cost-effective energy efficiency measures. |
Programs created pursuant to this Section will allow utility |
customers to purchase cost-effective energy efficiency |
measures, including measures set forth in a |
Commission-approved energy efficiency and demand-response plan |
under Section 8-103 of this Act and that are cost-effective as |
that term is defined by that Section, with no required initial |
upfront payment, and to pay the cost of those products and |
services over time on their utility bill. |
(b) Notwithstanding any other provision of this Act, an |
electric utility serving more than 100,000 customers on January |
1, 2009 shall offer a Commission-approved on-bill financing |
program ("program") that allows its eligible retail customers, |
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as that term is defined in Section 16-111.5 of this Act, who |
own a residential single family home, duplex, or other |
residential building with 4 or less units, or condominium at |
which the electric service is being provided (i) to borrow |
funds from a third party lender in order to purchase electric |
energy efficiency measures approved under the program for |
installation in such home or condominium without any required |
upfront payment and (ii) to pay back such funds over time |
through the electric utility's bill. Based upon the process |
described in subsection (b-5) of this Section, small commercial |
retail customers, as that term is defined in Section 16-102 of |
this Act, who own the premises at which electric service is |
being provided may be included in such program. After receiving |
a request from an electric utility for approval of a proposed |
program and tariffs pursuant to this Section, the Commission |
shall render its decision within 120 days. If no decision is |
rendered within 120 days, then the request shall be deemed to |
be approved. |
Beginning no later than December 31, 2013, an electric |
utility subject to this subsection (b) shall also offer its |
program to eligible retail customers that own multifamily |
residential or mixed-use buildings with no more than 50 |
residential units, provided, however, that such customers must |
either be a residential customer or small commercial customer |
and may not use the program in such a way that repayment of the |
cost of energy efficiency measures is made through tenants' |
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utility bills. An electric utility may impose a per site loan |
limit not to exceed $150,000. The program, and loans issued |
thereunder, shall only be offered to customers of the utility |
that meet the requirements of this Section and that also have |
an electric service account at the premises where the energy |
efficiency measures being financed shall be installed. |
For purposes of this Section, "small commercial customer" |
means, for an electric utility serving more than 3,000,000 |
retail customers, those customers having peak demand of less |
than 100 kilowatts, and, for an electric utility serving less |
than 3,000,000 retail customers, those customers having peak |
demand of less than 150 kilowatts; provided, however, that in |
the event the Commission, after the effective date of this |
amendatory Act of the 98th General Assembly, approves changes |
to a utility's tariffs that reflects new or revised demand |
criteria for the utility's customer rate classifications, then |
the utility may file a petition with the Commission to revise |
the applicable definition of a small commercial customer to |
reflect the new or revised demand criteria for the purposes of |
this Section. After notice and hearing, the Commission shall |
enter an order approving, or approving with modification, the |
revised definition within 60 days after the utility files the |
petition. |
(b-5) Within 30 days after the effective date of this |
amendatory Act of the 96th General Assembly, the Commission |
shall convene a workshop process during which interested |
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participants may discuss issues related to the program, |
including program design, eligible electric energy efficiency |
measures, vendor qualifications, and a methodology for |
ensuring ongoing compliance with such qualifications, |
financing, sample documents such as request for proposals, |
contracts and agreements, dispute resolution, pre-installment |
and post-installment verification, and evaluation. The |
workshop process shall be completed within 150 days after the |
effective date of this amendatory Act of the 96th General |
Assembly. |
(c) Not later than 60 days following completion of the |
workshop process described in subsection (b-5) of this Section, |
each electric utility subject to subsection (b) of this Section |
shall submit a proposed program to the Commission that contains |
the following components: |
(1) A list of recommended electric energy efficiency |
measures that will be eligible for on-bill financing. An |
eligible electric energy efficiency measure ("measure") |
shall be a product or service for which one or more of the |
following is true defined by the following: |
(A) (blank); the measure would be applied to or |
replace electric energy-using equipment; and either |
(B) the projected application of the measure to |
equipment and systems will have estimated electricity |
savings (determined by rates in effect at the time of |
purchase), that are sufficient to cover the costs of |
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implementing the measures, including finance charges |
and any program fees not recovered pursuant to |
subsection (f) of this Section; to assist the electric |
utility in identifying or approving measures, the |
utility may consult with the Department of Commerce and |
Economic Opportunity, as well as with retailers, |
technicians, and installers of electric energy |
efficiency measures and energy auditors (collectively |
"vendors"); or |
(C) the product or service measure is included in a |
Commission-approved energy efficiency and |
demand-response plan under Section 8-103 of this Act |
and is cost-effective as that term is defined by that |
Section. |
(2) The electric utility shall issue a request for |
proposals ("RFP") to lenders for purposes of providing |
financing to participants to pay for approved measures. The |
RFP criteria shall include, but not be limited to, the |
interest rate, origination fees, and credit terms. The |
utility shall select the winning bidders based on its |
evaluation of these criteria, with a preference for those |
bids containing the rates, fees, and terms most favorable |
to participants; |
(3) The utility shall work with the lenders selected |
pursuant to the RFP process, and with vendors, to establish |
the terms and processes pursuant to which a participant can |
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purchase eligible electric energy efficiency measures |
using the financing obtained from the lender. The vendor |
shall explain and offer the approved financing packaging to |
those customers identified in subsection (b) of this |
Section and shall assist customers in applying for |
financing. As part of the process, vendors shall also |
provide to participants information about any other |
incentives that may be available for the measures. |
(4) The lender shall conduct credit checks or undertake |
other appropriate measures to limit credit risk, and shall |
review and approve or deny financing applications |
submitted by customers identified in subsection (b) of this |
Section. Following the lender's approval of financing and |
the participant's purchase of the measure or measures, the |
lender shall forward payment information to the electric |
utility, and the utility shall add as a separate line item |
on the participant's utility bill a charge showing the |
amount due under the program each month. |
(5) A loan issued to a participant pursuant to the |
program shall be the sole responsibility of the |
participant, and any dispute that may arise concerning the |
loan's terms, conditions, or charges shall be resolved |
between the participant and lender. Upon transfer of the |
property title for the premises at which the participant |
receives electric service from the utility or the |
participant's request to terminate service at such |
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premises, the participant shall pay in full its electric |
utility bill, including all amounts due under the program, |
provided that this obligation may be modified as provided |
in subsection (g) of this Section. Amounts due under the |
program shall be deemed amounts owed for residential and, |
as appropriate, small commercial electric service. |
(6) The electric utility shall remit payment in full to |
the lender each month on behalf of the participant. In the |
event a participant defaults on payment of its electric |
utility bill, the electric utility shall continue to remit |
all payments due under the program to the lender, and the |
utility shall be entitled to recover all costs related to a |
participant's nonpayment through the automatic adjustment |
clause tariff established pursuant to Section 16-111.8 of |
this Act. In addition, the electric utility shall retain a |
security interest in the measure or measures purchased |
under the program, and the utility retains its right to |
disconnect a participant that defaults on the payment of |
its utility bill. |
(7) The total outstanding amount financed under the |
program in this subsection and subsection (c-5) of this |
Section program shall not exceed $2.5 million for an |
electric utility or electric utilities under a single |
holding company, provided that the electric utility or |
electric utilities may petition the Commission for an |
increase in such amount. |
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(c-5) Within 120 days after the effective date of this |
amendatory Act of the 98th General Assembly, each electric |
utility subject to the requirements of this Section shall |
submit an informational filing to the Commission that describes |
its plan for implementing the provisions of this amendatory Act |
of the 98th General Assembly on or before December 31, 2013. |
Such filing shall also describe how the electric utility shall |
coordinate its program with any gas utility or utilities that |
provide gas service to buildings within the electric utility's |
service territory so that it is practical and feasible for the |
owner of a multifamily building to make a single application to |
access loans for both gas and electric energy efficiency |
measures in any individual building. |
(d) A program approved by the Commission shall also include |
the following criteria and guidelines for such program: |
(1) guidelines for financing of measures installed |
under a program, including, but not limited to, RFP |
criteria and limits on both individual loan amounts and the |
duration of the loans; |
(2) criteria and standards for identifying and |
approving measures; |
(3) qualifications of vendors that will market or |
install measures, as well as a methodology for ensuring |
ongoing compliance with such qualifications; |
(4) sample contracts and agreements necessary to |
implement the measures and program; and |
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(5) the types of data and information that utilities |
and vendors participating in the program shall collect for |
purposes of preparing the reports required under |
subsection (g) of this Section. |
(e) The proposed program submitted by each electric utility |
shall be consistent with the provisions of this Section that |
define operational, financial and billing arrangements between |
and among program participants, vendors, lenders, and the |
electric utility. |
(f) An electric utility shall recover all of the prudently |
incurred costs of offering a program approved by the Commission |
pursuant to this Section, including, but not limited to, all |
start-up and administrative costs and the costs for program |
evaluation. All prudently incurred costs under this Section |
shall be recovered from the residential and small commercial |
retail customer classes eligible to participate in the program |
through the automatic adjustment clause tariff established |
pursuant to Section 8-103 of this Act. |
(g) An independent evaluation of a program shall be |
conducted after 3 years of the program's operation. The |
electric utility shall retain an independent evaluator who |
shall evaluate the effects of the measures installed under the |
program and the overall operation of the program, including, |
but not limited to, customer eligibility criteria and whether |
the payment obligation for permanent electric energy |
efficiency measures that will continue to provide benefits of |
|
energy savings should attach to the meter location. As part of |
the evaluation process, the evaluator shall also solicit |
feedback from participants and interested stakeholders. The |
evaluator shall issue a report to the Commission on its |
findings no later than 4 years after the date on which the |
program commenced, and the Commission shall issue a report to |
the Governor and General Assembly including a summary of the |
information described in this Section as well as its |
recommendations as to whether the program should be |
discontinued, continued with modification or modifications or |
continued without modification, provided that any recommended |
modifications shall only apply prospectively and to measures |
not yet installed or financed. |
(h) An electric utility offering a Commission-approved |
program pursuant to this Section shall not be required to |
comply with any other statute, order, rule, or regulation of |
this State that may relate to the offering of such program, |
provided that nothing in this Section is intended to limit the |
electric utility's obligation to comply with this Act and the |
Commission's orders, rules, and regulations, including Part |
280 of Title 83 of the Illinois Administrative Code. |
(i) The source of a utility customer's electric supply |
shall not disqualify a customer from participation in the |
utility's on-bill financing program. Customers of alternative |
retail electric suppliers may participate in the program under |
the same terms and conditions applicable to the utility's |
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supply customers.
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(Source: P.A. 96-33, eff. 7-10-09; 97-616, eff. 10-26-11.)
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(220 ILCS 5/19-140)
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Sec. 19-140. On-bill financing program; gas utilities. |
(a) The Illinois General Assembly finds that Illinois homes |
and businesses have the potential to save energy through |
conservation and cost-effective energy efficiency measures. |
Programs created pursuant to this Section will allow utility |
customers to purchase cost-effective energy efficiency |
measures, including measures set forth in a |
Commission-approved energy efficiency plan under Section 8-104 |
of this Act, with no required initial upfront payment, and to |
pay the cost of those products and services over time on their |
utility bill. |
(b) Notwithstanding any other provision of this Act, a gas |
utility serving more than 100,000 customers on January 1, 2009 |
shall offer a Commission-approved on-bill financing program |
("program") that allows its retail customers who own a |
residential single family home, duplex, or other residential |
building with 4 or less units, or condominium at which the gas |
service is being provided (i) to borrow funds from a third |
party lender in order to purchase gas energy efficiency |
measures approved under the program for installation in such |
home or condominium without any required upfront payment and |
(ii) to pay back such funds over time through the gas utility's |
|
bill. Based upon the process described in subsection (b-5) of |
this Section, small commercial retail customers, as that term |
is defined in Section 19-105 of this Act, who own the premises |
at which gas service is being provided may be included in such |
program. After receiving a request from a gas utility for |
approval of a proposed program and tariffs pursuant to this |
Section, the Commission shall render its decision within 120 |
days. If no decision is rendered within 120 days, then the |
request shall be deemed to be approved. Beginning no later than |
December 31, 2013, a gas utility subject to this subsection (b) |
shall also offer its program to eligible retail customers that |
own a multifamily residential or mixed-use building with no |
more than 50 residential units, provided, however, that such |
customer must either be a residential customer or small |
commercial customer and may not use the program in such a way |
that repayment of the cost of energy efficiency measures is |
made through tenants' utility bills. A gas utility may impose a |
per site loan limit not to exceed $150,000. The program, and |
loans issued thereunder, shall only be offered to customers of |
the utility that meet the requirements of this Section and that |
also have a gas service account at the premises where the |
energy efficiency measures being financed shall be installed. |
For purposes of this Section, a small commercial customer |
for a gas utility shall be defined in that gas utility's |
informational filing that is made under subsection (c-5) of |
this Section. |
|
(b-5) Within 30 days after the effective date of this |
amendatory Act of the 96th General Assembly, the Commission |
shall convene a workshop process during which interested |
participants may discuss issues related to the program, |
including program design, eligible gas energy efficiency |
measures, vendor qualifications, and a methodology for |
ensuring ongoing compliance with such qualifications, |
financing, sample documents such as request for proposals, |
contracts and agreements, dispute resolution, pre-installment |
and post-installment verification, and evaluation. The |
workshop process shall be completed within 150 days after the |
effective date of this amendatory Act of the 96th General |
Assembly. |
(c) Not later than 60 days following completion of the |
workshop process described in subsection (b-5) of this Section, |
each gas utility subject to subsection (b) of this Section |
shall submit a proposed program to the Commission that contains |
the following components: |
(1) A list of recommended gas energy efficiency |
measures that will be eligible for on-bill financing. An |
eligible gas energy efficiency measure ("measure") shall |
be a product or service for which one or more of the |
following is true defined by the following: |
(A) (blank); The measure would be applied to or |
replace gas energy-using equipment; and |
(B) the projected Application of the measure to |
|
equipment and systems will have estimated gas savings |
(determined by rates in effect at the time of |
purchase), that are sufficient to cover the costs of |
implementing the measures, including finance charges |
and any program fees not recovered pursuant to |
subsection (f) of this Section; or . To assist the gas |
utility in identifying or approving measures, the |
utility may consult with the Department of Commerce and |
Economic Opportunity, as well as with retailers, |
technicians and installers of gas energy efficiency |
measures and energy auditors (collectively "vendors"). |
(C) the product or service is included in a
|
Commission-approved energy efficiency plan under |
Section 8-104 of this Act. |
(2) The gas utility shall issue a request for proposals |
("RFP") to lenders for purposes of providing financing to |
participants to pay for approved measures. The RFP criteria |
shall include, but not be limited to, the interest rate, |
origination fees, and credit terms. The utility shall |
select the winning bidders based on its evaluation of these |
criteria, with a preference for those bids containing the |
rates, fees, and terms most favorable to participants. |
(3) The utility shall work with the lenders selected |
pursuant to the RFP process, and with vendors, to establish |
the terms and processes pursuant to which a participant can |
purchase eligible gas energy efficiency measures using the |
|
financing obtained from the lender. The vendor shall |
explain and offer the approved financing packaging to those |
customers identified in subsection (b) of this Section and |
shall assist customers in applying for financing. As part |
of such process, vendors shall also provide to participants |
information about any other incentives that may be |
available for the measures. |
(4) The lender shall conduct credit checks or undertake |
other appropriate measures to limit credit risk, and shall |
review and approve or deny financing applications |
submitted by customers identified in subsection (b) of this |
Section. Following the lender's approval of financing and |
the participant's purchase of the measure or measures, the |
lender shall forward payment information to the gas |
utility, and the utility shall add as a separate line item |
on the participant's utility bill a charge showing the |
amount due under the program each month. |
(5) A loan issued to a participant pursuant to the |
program shall be the sole responsibility of the |
participant, and any dispute that may arise concerning the |
loan's terms, conditions, or charges shall be resolved |
between the participant and lender. Upon transfer of the |
property title for the premises at which the participant |
receives gas service from the utility or the participant's |
request to terminate service at such premises, the |
participant shall pay in full its gas utility bill, |
|
including all amounts due under the program, provided that |
this obligation may be modified as provided in subsection |
(g) of this Section. Amounts due under the program shall be |
deemed amounts owed for residential and, as appropriate, |
small commercial gas service. |
(6) The gas utility shall remit payment in full to the |
lender each month on behalf of the participant. In the |
event a participant defaults on payment of its gas utility |
bill, the gas utility shall continue to remit all payments |
due under the program to the lender, and the utility shall |
be entitled to recover all costs related to a participant's |
nonpayment through the automatic adjustment clause tariff |
established pursuant to Section 19-145 of this Act. In |
addition, the gas utility shall retain a security interest |
in the measure or measures purchased under the program, and |
the utility retains its right to disconnect a participant |
that defaults on the payment of its utility bill. |
(7) The total outstanding amount financed under the |
program in this subsection and subsection (c-5) of this |
Section program shall not exceed $2.5 million for a gas |
utility or gas utilities under a single holding company, |
provided that the gas utility or gas utilities may petition |
the Commission for an increase in such amount. |
(c-5) Within 120 days after the effective date of this |
amendatory Act of the 98th General Assembly, each covered gas |
utility shall submit an informational filing to the Commission |
|
that describes its plan for implementing the provisions of this |
amendatory Act of the 98th General Assembly on or before |
December 31, 2013. A gas utility subject to this Section shall |
cooperate with any electric utility that provides electric |
service to buildings within the gas utility's service territory |
so that it is practical and feasible for the owner of a |
multifamily building to make a single application to access |
loans for both gas and electric energy efficiency measures in |
any individual building. |
(d) A program approved by the Commission shall also include |
the following criteria and guidelines for such program: |
(1) guidelines for financing of measures installed |
under a program, including, but not limited to, RFP |
criteria and limits on both individual loan amounts and the |
duration of the loans; |
(2) criteria and standards for identifying and |
approving measures; |
(3) qualifications of vendors that will market or |
install measures, as well as a methodology for ensuring |
ongoing compliance with such qualifications; |
(4) sample contracts and agreements necessary to |
implement the measures and program; and |
(5) the types of data and information that utilities |
and vendors participating in the program shall collect for |
purposes of preparing the reports required under |
subsection (g) of this Section. |
|
(e) The proposed program submitted by each gas utility |
shall be consistent with the provisions of this Section that |
define operational, financial, and billing arrangements |
between and among program participants, vendors, lenders, and |
the gas utility. |
(f) A gas utility shall recover all of the prudently |
incurred costs of offering a program approved by the Commission |
pursuant to this Section, including, but not limited to, all |
start-up and administrative costs and the costs for program |
evaluation. All prudently incurred costs under this Section |
shall be recovered from the residential and small commercial |
retail customer classes eligible to participate in the program |
through the automatic adjustment clause tariff established |
pursuant to Section 8-104 of this Act. |
(g) An independent evaluation of a program shall be |
conducted after 3 years of the program's operation. The gas |
utility shall retain an independent evaluator who shall |
evaluate the effects of the measures installed under the |
program and the overall operation of the program, including, |
but not limited to, customer eligibility criteria and whether |
the payment obligation for permanent gas energy efficiency |
measures that will continue to provide benefits of energy |
savings should attach to the meter location. As part of the |
evaluation process, the evaluator shall also solicit feedback |
from participants and interested stakeholders. The evaluator |
shall issue a report to the Commission on its findings no later |
|
than 4 years after the date on which the program commenced, and |
the Commission shall issue a report to the Governor and General |
Assembly including a summary of the information described in |
this Section as well as its recommendations as to whether the |
program should be discontinued, continued with modification or |
modifications or continued without modification, provided that |
any recommended modifications shall only apply prospectively |
and to measures not yet installed or financed. |
(h) A gas utility offering a Commission-approved program |
pursuant to this Section shall not be required to comply with |
any other statute, order, rule, or regulation of this State |
that may relate to the offering of such program, provided that |
nothing in this Section is intended to limit the gas utility's |
obligation to comply with this Act and the Commission's orders, |
rules, and regulations, including Part 280 of Title 83 of the |
Illinois Administrative Code. |
(i) The source of a utility customer's gas supply shall not |
disqualify a customer from participation in the utility's |
on-bill financing program. Customers of alternative gas |
suppliers may participate in the program under the same terms |
and conditions applicable to the utility's supply customers.
|
(Source: P.A. 96-33, eff. 7-10-09.)
|
