Bill Text: IL SB2365 | 2013-2014 | 98th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Illinois Power Agency Act. Includes references to the reduction of thermal load in the definitions of "energy efficiency" and "renewable energy resources". Makes corresponding changes to the definition of "Energy Efficiency Project" in the Illinois Finance Authority Act. Effective immediately.

Sponsorship: Slight Partisan Bill (Democrat 15-7)

Status: (Passed) 2013-11-15 - Public Act . . . . . . . . . 98-0595 [SB2365 Detail]

Download: Illinois-2013-SB2365-Engrossed.html

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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Finance Authority Act is amended by
changing Section 825-65 as follows:
(20 ILCS 3501/825-65)
Sec. 825-65. Clean Coal, Coal, Energy Efficiency, and
Renewable Energy Project Financing.
(a) Findings and declaration of policy.
(i) It is hereby found and declared that Illinois has
abundant coal resources and, in some areas of Illinois, the
demand for power exceeds the generating capacity.
Incentives to encourage the construction of coal-fueled
electric generating plants in Illinois to ensure power
generating capacity into the future and to advance clean
coal technology and the use of Illinois coal are in the
best interests of all of the citizens of Illinois.
(ii) It is further found and declared that Illinois has
abundant potential and resources to develop renewable
energy resource projects and that there are many
opportunities to invest in cost-effective energy
efficiency projects throughout the State. The development
of those projects will create jobs and investment as well

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as decrease environmental impacts and promote energy
independence in Illinois. Accordingly, the development of
those projects is in the best interests of all of the
citizens of Illinois.
(iii) The Authority is authorized to issue bonds to
help finance Clean Coal, Coal, Energy Efficiency, and
Renewable Energy projects pursuant to this Section.
(b) Definitions.
(i) "Clean Coal Project" means (A) "clean coal
facility", as defined in Section 1-10 of the Illinois Power
Agency Act; (B) "clean coal SNG facility", as defined in
Section 1-10 of the Illinois Power Agency Act; (C)
transmission lines and associated equipment that transfer
electricity from points of supply to points of delivery for
projects described in this subsection (b); (D) pipelines or
other methods to transfer carbon dioxide from the point of
production to the point of storage or sequestration for
projects described in this subsection (b); or (E) projects
to provide carbon abatement technology for existing
generating facilities.
(ii) "Coal Project" means new electric generating
facilities or new gasification facilities, as defined in
Section 605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of
Illinois, which may include mine-mouth power plants,
projects that employ the use of clean coal technology,

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projects to provide scrubber technology for existing
energy generating plants, or projects to provide electric
transmission facilities or new gasification facilities.
(iii) "Energy Efficiency Project" means measures that
reduce the amount of electricity or natural gas required to
achieve a given end use, consistent with Section 1-10 of
the Illinois Power Agency Act. "Energy Efficiency Project"
also includes measures that reduce the total Btus of
electricity and natural gas needed to meet the end use or
uses consistent with Section 1-10 of the Illinois Power
Agency Act.
(iv) "Renewable Energy Project" means (A) a project
that uses renewable energy resources, as defined in Section
1-10 of the Illinois Power Agency Act; (B) a project that
uses environmentally preferable technologies and practices
that result in improvements to the production of renewable
fuels, including but not limited to, cellulosic
conversion, water and energy conservation, fractionation,
alternative feedstocks, or reduced green house gas
emissions; (C) transmission lines and associated equipment
that transfer electricity from points of supply to points
of delivery for projects described in this subsection (b);
or (D) projects that use technology for the storage of
renewable energy, including, without limitation, the use
of battery or electrochemical storage technology for
mobile or stationary applications.

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(c) Creation of reserve funds. The Authority may establish
and maintain one or more reserve funds to enhance bonds issued
by the Authority for a Clean Coal Project, a Coal Project, an
Energy Efficiency Project, or a Renewable Energy Project. There
may be one or more accounts in these reserve funds in which
there may be deposited:
(1) any proceeds of the bonds issued by the Authority
required to be deposited therein by the terms of any
contract between the Authority and its bondholders or any
resolution of the Authority;
(2) any other moneys or funds of the Authority that it
may determine to deposit therein from any other source; and
(3) any other moneys or funds made available to the
Authority. Subject to the terms of any pledge to the owners
of any bonds, moneys in any reserve fund may be held and
applied to the payment of principal, premium, if any, and
interest of such bonds.
(d) Powers and duties. The Authority has the power:
(1) To issue bonds in one or more series pursuant to
one or more resolutions of the Authority for any Clean Coal
Project, Coal Project, Energy Efficiency Project, or
Renewable Energy Project authorized under this Section,
within the authorization set forth in subsection (e).
(2) To provide for the funding of any reserves or other
funds or accounts deemed necessary by the Authority in
connection with any bonds issued by the Authority.

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(3) To pledge any funds of the Authority or funds made
available to the Authority that may be applied to such
purpose as security for any bonds or any guarantees,
letters of credit, insurance contracts or similar credit
support or liquidity instruments securing the bonds.
(4) To enter into agreements or contracts with third
parties, whether public or private, including, without
limitation, the United States of America, the State or any
department or agency thereof, to obtain any
appropriations, grants, loans or guarantees that are
deemed necessary or desirable by the Authority. Any such
guarantee, agreement or contract may contain terms and
provisions necessary or desirable in connection with the
program, subject to the requirements established by the
Act.
(5) To exercise such other powers as are necessary or
incidental to the foregoing.
(e) Clean Coal Project, Coal Project, Energy Efficiency
Project, and Renewable Energy Project bond authorization and
financing limits. In addition to any other bonds authorized to
be issued under Sections 801-40(w), 825-60, 830-25 and 845-5,
the Authority may have outstanding, at any time, bonds for the
purpose enumerated in this Section 825-65 in an aggregate
principal amount that shall not exceed $3,000,000,000, subject
to the following limitations: (i) up to $300,000,000 may be
issued to finance projects, as described in clause (C) of

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subsection (b)(i) and clause (C) of subsection (b)(iv) of this
Section 825-65; (ii) up to $500,000,000 may be issued to
finance projects, as described in clauses (D) and (E) of
subsection (b)(i) of this Section 825-65; (iii) up to
$2,000,000,000 may be issued to finance Clean Coal Projects, as
described in clauses (A) and (B) of subsection (b)(i) of this
Section 825-65 and Coal Projects, as described in subsection
(b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000
may be issued to finance Energy Efficiency Projects, as
described in subsection (b)(iii) of this Section 825-65 and
Renewable Energy Projects, as described in clauses (A), (B),
and (D) of subsection (b)(iii) of this Section 825-65. An
application for a loan financed from bond proceeds from a
borrower or its affiliates for a Clean Coal Project, a Coal
Project, Energy Efficiency Project, or a Renewable Energy
Project may not be approved by the Authority for an amount in
excess of $450,000,000 for any borrower or its affiliates.
These bonds shall not constitute an indebtedness or obligation
of the State of Illinois and it shall be plainly stated on the
face of each bond that it does not constitute an indebtedness
or obligation of the State of Illinois, but is payable solely
from the revenues, income or other assets of the Authority
pledged therefor.
(f) The bonding authority granted under this Section is in
addition to and not limited by the provisions of Section 845-5.
(Source: P.A. 95-470, eff. 8-27-07; 96-103, eff. 1-1-10;

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96-817, eff. 1-1-10.)
Section 10. The Illinois Power Agency Act is amended by
changing Section 1-10 as follows:
(20 ILCS 3855/1-10)
Sec. 1-10. Definitions.
"Agency" means the Illinois Power Agency.
"Agency loan agreement" means any agreement pursuant to
which the Illinois Finance Authority agrees to loan the
proceeds of revenue bonds issued with respect to a project to
the Agency upon terms providing for loan repayment installments
at least sufficient to pay when due all principal of, interest
and premium, if any, on those revenue bonds, and providing for
maintenance, insurance, and other matters in respect of the
project.
"Authority" means the Illinois Finance Authority.
"Clean coal facility" means an electric generating
facility that uses primarily coal as a feedstock and that
captures and sequesters carbon dioxide emissions at the
following levels: at least 50% of the total carbon dioxide
emissions that the facility would otherwise emit if, at the
time construction commences, the facility is scheduled to
commence operation before 2016, at least 70% of the total
carbon dioxide emissions that the facility would otherwise emit
if, at the time construction commences, the facility is

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scheduled to commence operation during 2016 or 2017, and at
least 90% of the total carbon dioxide emissions that the
facility would otherwise emit if, at the time construction
commences, the facility is scheduled to commence operation
after 2017. The power block of the clean coal facility shall
not exceed allowable emission rates for sulfur dioxide,
nitrogen oxides, carbon monoxide, particulates and mercury for
a natural gas-fired combined-cycle facility the same size as
and in the same location as the clean coal facility at the time
the clean coal facility obtains an approved air permit. All
coal used by a clean coal facility shall have high volatile
bituminous rank and greater than 1.7 pounds of sulfur per
million btu content, unless the clean coal facility does not
use gasification technology and was operating as a conventional
coal-fired electric generating facility on June 1, 2009 (the
effective date of Public Act 95-1027).
"Clean coal SNG brownfield facility" means a facility that
(1) has commenced construction by July 1, 2015 on an urban
brownfield site in a municipality with at least 1,000,000
residents; (2) uses a gasification process to produce
substitute natural gas; (3) uses coal as at least 50% of the
total feedstock over the term of any sourcing agreement with a
utility and the remainder of the feedstock may be either
petroleum coke or coal, with all such coal having a high
bituminous rank and greater than 1.7 pounds of sulfur per
million Btu content unless the facility reasonably determines

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that it is necessary to use additional petroleum coke to
deliver additional consumer savings, in which case the facility
shall use coal for at least 35% of the total feedstock over the
term of any sourcing agreement; and (4) captures and sequesters
at least 85% of the total carbon dioxide emissions that the
facility would otherwise emit.
"Clean coal SNG facility" means a facility that uses a
gasification process to produce substitute natural gas, that
sequesters at least 90% of the total carbon dioxide emissions
that the facility would otherwise emit, that uses at least 90%
coal as a feedstock, with all such coal having a high
bituminous rank and greater than 1.7 pounds of sulfur per
million btu content, and that has a valid and effective permit
to construct emission sources and air pollution control
equipment and approval with respect to the federal regulations
for Prevention of Significant Deterioration of Air Quality
(PSD) for the plant pursuant to the federal Clean Air Act;
provided, however, a clean coal SNG brownfield facility shall
not be a clean coal SNG facility.
"Commission" means the Illinois Commerce Commission.
"Costs incurred in connection with the development and
construction of a facility" means:
(1) the cost of acquisition of all real property,
fixtures, and improvements in connection therewith and
equipment, personal property, and other property, rights,
and easements acquired that are deemed necessary for the

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operation and maintenance of the facility;
(2) financing costs with respect to bonds, notes, and
other evidences of indebtedness of the Agency;
(3) all origination, commitment, utilization,
facility, placement, underwriting, syndication, credit
enhancement, and rating agency fees;
(4) engineering, design, procurement, consulting,
legal, accounting, title insurance, survey, appraisal,
escrow, trustee, collateral agency, interest rate hedging,
interest rate swap, capitalized interest, contingency, as
required by lenders, and other financing costs, and other
expenses for professional services; and
(5) the costs of plans, specifications, site study and
investigation, installation, surveys, other Agency costs
and estimates of costs, and other expenses necessary or
incidental to determining the feasibility of any project,
together with such other expenses as may be necessary or
incidental to the financing, insuring, acquisition, and
construction of a specific project and starting up,
commissioning, and placing that project in operation.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of the Illinois Power Agency.
"Demand-response" means measures that decrease peak
electricity demand or shift demand from peak to off-peak
periods.

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"Distributed renewable energy generation device" means a
device that is:
(1) powered by wind, solar thermal energy,
photovoltaic cells and panels, biodiesel, crops and
untreated and unadulterated organic waste biomass, tree
waste, and hydropower that does not involve new
construction or significant expansion of hydropower dams;
(2) interconnected at the distribution system level of
either an electric utility as defined in this Section, an
alternative retail electric supplier as defined in Section
16-102 of the Public Utilities Act, a municipal utility as
defined in Section 3-105 of the Public Utilities Act, or a
rural electric cooperative as defined in Section 3-119 of
the Public Utilities Act;
(3) located on the customer side of the customer's
electric meter and is primarily used to offset that
customer's electricity load; and
(4) limited in nameplate capacity to no more than 2,000
kilowatts.
"Energy efficiency" means measures that reduce the amount
of electricity or natural gas 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.
"Electric utility" has the same definition as found in
Section 16-102 of the Public Utilities Act.

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"Facility" means an electric generating unit or a
co-generating unit that produces electricity along with
related equipment necessary to connect the facility to an
electric transmission or distribution system.
"Governmental aggregator" means one or more units of local
government that individually or collectively procure
electricity to serve residential retail electrical loads
located within its or their jurisdiction.
"Local government" means a unit of local government as
defined in Section 1 of Article VII of the Illinois
Constitution.
"Municipality" means a city, village, or incorporated
town.
"Person" means any natural person, firm, partnership,
corporation, either domestic or foreign, company, association,
limited liability company, joint stock company, or association
and includes any trustee, receiver, assignee, or personal
representative thereof.
"Project" means the planning, bidding, and construction of
a facility.
"Public utility" has the same definition as found in
Section 3-105 of the Public Utilities Act.
"Real property" means any interest in land together with
all structures, fixtures, and improvements thereon, including
lands under water and riparian rights, any easements,
covenants, licenses, leases, rights-of-way, uses, and other

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interests, together with any liens, judgments, mortgages, or
other claims or security interests related to real property.
"Renewable energy credit" means a tradable credit that
represents the environmental attributes of a certain amount of
energy produced from a renewable energy resource.
"Renewable energy resources" includes energy and its
associated renewable energy credit or renewable energy credits
from wind, solar thermal energy, photovoltaic cells and panels,
biodiesel, anaerobic digestion, crops and untreated and
unadulterated organic waste biomass, tree waste, hydropower
that does not involve new construction or significant expansion
of hydropower dams, and other alternative sources of
environmentally preferable energy. For purposes of this Act,
landfill gas produced in the State is considered a renewable
energy resource. "Renewable energy resources" does not include
the incineration or burning of tires, garbage, general
household, institutional, and commercial waste, industrial
lunchroom or office waste, landscape waste other than tree
waste, railroad crossties, utility poles, or construction or
demolition debris, other than untreated and unadulterated
waste wood.
"Revenue bond" means any bond, note, or other evidence of
indebtedness issued by the Authority, the principal and
interest of which is payable solely from revenues or income
derived from any project or activity of the Agency.
"Sequester" means permanent storage of carbon dioxide by

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injecting it into a saline aquifer, a depleted gas reservoir,
or an oil reservoir, directly or through an enhanced oil
recovery process that may involve intermediate storage,
regardless of whether these activities are conducted by a clean
coal facility, a clean coal SNG facility, a clean coal SNG
brownfield facility, or a party with which a clean coal
facility, clean coal SNG facility, or clean coal SNG brownfield
facility has contracted for such purposes.
"Sourcing agreement" means (i) in the case of an electric
utility, an agreement between the owner of a clean coal
facility and such electric utility, which agreement shall have
terms and conditions meeting the requirements of paragraph (3)
of subsection (d) of Section 1-75, (ii) in the case of an
alternative retail electric supplier, an agreement between the
owner of a clean coal facility and such alternative retail
electric supplier, which agreement shall have terms and
conditions meeting the requirements of Section 16-115(d)(5) of
the Public Utilities Act, and (iii) in case of a gas utility,
an agreement between the owner of a clean coal SNG brownfield
facility and the gas utility, which agreement shall have the
terms and conditions meeting the requirements of subsection
(h-1) of Section 9-220 of the Public Utilities Act.
"Substitute natural gas" or "SNG" means a gas manufactured
by gasification of hydrocarbon feedstock, which is
substantially interchangeable in use and distribution with
conventional natural gas.

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"Total resource cost test" or "TRC test" means a standard
that is met if, for an investment in energy efficiency or
demand-response measures, the benefit-cost ratio is greater
than one. The benefit-cost ratio is the ratio of the net
present value of the total benefits of the program to the net
present value of the total costs as calculated over the
lifetime of the measures. A total resource cost test compares
the sum of avoided electric utility costs, representing the
benefits that accrue to the system and the participant in the
delivery of those efficiency measures, as well as other
quantifiable societal benefits, including avoided natural gas
utility costs, to the sum of all incremental costs of end-use
measures that are implemented due to the program (including
both utility and participant contributions), plus costs to
administer, deliver, and evaluate each demand-side program, to
quantify the net savings obtained by substituting the
demand-side program for supply resources. In calculating
avoided costs of power and energy that an electric utility
would otherwise have had to acquire, reasonable estimates shall
be included of financial costs likely to be imposed by future
regulations and legislation on emissions of greenhouse gases.
(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;
96-784, eff. 8-28-09; 96-1000, eff. 7-2-10; 97-96, eff.
7-13-11; 97-239, eff. 8-2-11; 97-491, eff. 8-22-11; 97-616,
eff. 10-26-11; 97-813, eff. 7-13-12.)

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Section 15. The Public Utilities Act is amended by changing
Sections 8-103 and 8-104 as follows:
(220 ILCS 5/8-103)
Sec. 8-103. 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 for reasonably and
prudently incurred expenses 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 (f)(4) 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" shall have the
meanings set forth in the Illinois Power Agency Act. For
purposes of this Section, the amount per kilowatthour means the
total amount paid for electric service expressed on a per

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kilowatthour basis. For purposes of this Section, the total
amount paid for electric service includes without limitation
estimated amounts paid for supply, transmission, distribution,
surcharges, and add-on-taxes.
(b) Electric utilities shall implement cost-effective
energy efficiency measures to meet the following incremental
annual energy savings goals:
(1) 0.2% of energy delivered in the year commencing
June 1, 2008;
(2) 0.4% of energy delivered in the year commencing
June 1, 2009;
(3) 0.6% of energy delivered in the year commencing
June 1, 2010;
(4) 0.8% of energy delivered in the year commencing
June 1, 2011;
(5) 1% of energy delivered in the year commencing June
1, 2012;
(6) 1.4% of energy delivered in the year commencing
June 1, 2013;
(7) 1.8% of energy delivered in the year commencing
June 1, 2014; and
(8) 2% of energy delivered in the year commencing June
1, 2015 and each year thereafter.
Electric utilities may comply with this subsection (b) by
meeting the annual incremental savings goal in the applicable
year or by showing that total savings associated with measures

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implemented on or after May 31, 2014 were equal to the sum of
each annual incremental savings goal on or after June 1, 2014
through the end of the applicable year.
(c) Electric utilities shall 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 commences June 1, 2008 and
continues for 10 years.
(d) Notwithstanding the requirements of subsections (b)
and (c) of this Section, an electric utility shall reduce the
amount of energy efficiency and demand-response measures
implemented over in any 3-year period single year by an amount
necessary to limit the estimated average annual increase in the
amounts paid by retail customers in connection with electric
service due to the cost of those measures to:
(1) in 2008, no more than 0.5% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2007;
(2) in 2009, the greater of an additional 0.5% of the
amount paid per kilowatthour by those customers during the
year ending May 31, 2008 or 1% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2007;

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(3) in 2010, the greater of an additional 0.5% of the
amount paid per kilowatthour by those customers during the
year ending May 31, 2009 or 1.5% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2007;
(4) in 2011, the greater of an additional 0.5% of the
amount paid per kilowatthour by those customers during the
year ending May 31, 2010 or 2% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2007; and
(5) thereafter, the amount of energy efficiency and
demand-response measures implemented for any single year
shall be reduced by an amount necessary to limit the
estimated average net increase due to the cost of these
measures included in the amounts paid by eligible retail
customers in connection with electric service to no more
than the greater of 2.015% of the amount paid per
kilowatthour by those customers during the year ending May
31, 2007 or the incremental amount per kilowatthour paid
for these measures in 2011.
No later than June 30, 2011, the Commission shall review
the limitation on the amount of energy efficiency and
demand-response measures implemented pursuant to this Section
and report to the General Assembly its findings as to whether
that limitation unduly constrains the procurement of energy
efficiency and demand-response measures.

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(e) Electric utilities shall be responsible for overseeing
the design, development, and filing of energy efficiency and
demand-response plans with the Commission. Electric utilities
shall implement 100% of the demand-response measures in the
plans. Electric utilities shall implement 75% of the energy
efficiency measures approved by the Commission, and may, as
part of that implementation, outsource various aspects of
program development and implementation. The remaining 25% of
those energy efficiency measures approved by the Commission
shall be implemented by the Department of Commerce and Economic
Opportunity, and must be designed in conjunction with the
utility and the filing process. The Department may outsource
development and implementation of energy efficiency measures.
A minimum of 10% of the entire portfolio of cost-effective
energy efficiency measures shall be procured from units of
local government, municipal corporations, school districts,
and community college districts. The Department shall
coordinate the implementation of these measures.
The apportionment of the dollars to cover the costs to
implement the Department's share of the portfolio of energy
efficiency measures shall be made to the Department once the
Department has executed rebate agreements, grants, or
contracts for energy efficiency measures and provided
supporting documentation for those rebate agreements, grants,
and contracts to the utility. The Department is authorized to
adopt any rules necessary and prescribe procedures in order to

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ensure compliance by applicants in carrying out the purposes of
rebate agreements for energy efficiency measures implemented
by the Department made under this Section.
The details of the measures implemented by the Department
shall be submitted by the Department to the Commission in
connection with the utility's filing regarding the energy
efficiency and demand-response measures that the utility
implements.
A utility providing approved energy efficiency and
demand-response measures in the State shall be permitted to
recover costs of those measures 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.
Each utility shall include, in its recovery of costs, the
costs estimated for both the utility's and the Department's
implementation of energy efficiency and demand-response
measures. Costs collected by the utility for measures
implemented by the Department shall be submitted to the
Department pursuant to Section 605-323 of the Civil
Administrative Code of Illinois, shall be deposited into the
Energy Efficiency Portfolio Standards Fund, and shall be used
by the Department solely for the purpose of implementing these

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measures. A utility shall not be required to advance any moneys
to the Department but only to forward such funds as it has
collected. The Department shall report to the Commission on an
annual basis regarding the costs actually incurred by the
Department in the implementation of the measures. Any changes
to the costs of energy efficiency measures as a result of plan
modifications shall be appropriately reflected in amounts
recovered by the utility and turned over to the Department.
The portfolio of measures, administered by both the
utilities and the Department, shall, in combination, be
designed to achieve the annual savings targets described in
subsections (b) and (c) of this Section, as modified by
subsection (d) of this Section.
The utility and the Department shall agree upon a
reasonable portfolio of measures and determine the measurable
corresponding percentage of the savings goals associated with
measures implemented by the utility or Department.
No utility shall be assessed a penalty under subsection (f)
of this Section for failure to make a timely filing if that
failure is the result of a lack of agreement with the
Department with respect to the allocation of responsibilities
or related costs or target assignments. In that case, the
Department and the utility shall file their respective plans
with the Commission and the Commission shall determine an
appropriate division of measures and programs that meets the
requirements of this Section.

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If the Department is unable to meet incremental annual
performance goals for the portion of the portfolio implemented
by the Department, then the utility and the Department shall
jointly submit a modified filing to the Commission explaining
the performance shortfall and recommending an appropriate
course going forward, including any program modifications that
may be appropriate in light of the evaluations conducted under
item (7) of subsection (f) of this Section. In this case, the
utility obligation to collect the Department's costs and turn
over those funds to the Department under this subsection (e)
shall continue only if the Commission approves the
modifications to the plan proposed by the Department.
(f) No later than November 15, 2007, each electric utility
shall file an energy efficiency and demand-response plan with
the Commission to meet the energy efficiency and
demand-response standards for 2008 through 2010. No later than
October 1, 2010, each electric utility shall file an energy
efficiency and demand-response plan with the Commission to meet
the energy efficiency and demand-response standards for 2011
through 2013. Every 3 years thereafter, each electric utility
shall file, no later than September 1, an energy efficiency and
demand-response plan with the Commission. If a utility does not
file such a plan by September 1 of an applicable year, it shall
face a penalty of $100,000 per day until the plan is filed.
Each utility's plan shall set forth the utility's proposals to
meet the utility's portion of the energy efficiency standards

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identified in subsection (b) and the demand-response standards
identified in subsection (c) of this Section as modified by
subsections (d) and (e), taking into account the unique
circumstances of the utility's service territory. The
Commission shall seek public comment on the utility's plan and
shall issue an order approving or disapproving each plan within
5 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
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. In
submitting proposed energy efficiency and demand-response
plans and funding levels to meet the savings goals adopted by
this Act the utility shall:
(1) Demonstrate that its proposed energy efficiency
and demand-response measures will achieve the requirements
that are identified in subsections (b) and (c) of this
Section, as modified by subsections (d) and (e).
(2) Present specific proposals to implement new
building and appliance standards that have been placed into

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effect.
(3) Present estimates of the total amount paid for
electric service expressed on a per kilowatthour basis
associated with the proposed portfolio of measures
designed to meet the requirements that are identified in
subsections (b) and (c) of this Section, as modified by
subsections (d) and (e).
(4) Coordinate with the Department to present a
portfolio of energy efficiency measures proportionate to
the share of total annual utility revenues in Illinois from
households at or below 150% of the poverty level. The
energy efficiency programs shall be targeted to households
with incomes at or below 80% of area median income.
(5) Demonstrate that its overall portfolio of energy
efficiency and demand-response measures, not including
programs covered by item (4) of this subsection (f), are
cost-effective using the total resource cost test and
represent a diverse cross-section of opportunities for
customers of all rate classes to participate in the
programs.
(6) Include a proposed cost-recovery tariff mechanism
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.
(7) Provide for an annual independent evaluation of the
performance of the cost-effectiveness of the utility's

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portfolio of measures and the Department's portfolio of
measures, as well as a full review of the 3-year 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.
(g) No more than 3% of energy efficiency and
demand-response program revenue may be allocated for
demonstration of breakthrough equipment and devices.
(h) This Section does not apply to an electric utility that
on December 31, 2005 provided electric service to fewer than
100,000 customers in Illinois.
(i) If, after 2 years, an electric utility fails to meet
the efficiency standard specified in subsection (b) of this
Section, as modified by subsections (d) and (e), it shall make
a contribution to the Low-Income Home Energy Assistance
Program. The combined total liability for failure to meet the
goal shall be $1,000,000, which shall be assessed as follows: a
large electric utility shall pay $665,000, and a medium
electric utility shall pay $335,000. If, after 3 years, an
electric utility fails to meet the efficiency standard
specified in subsection (b) of this Section, as modified by
subsections (d) and (e), it shall make a contribution to the
Low-Income Home Energy Assistance Program. The combined total
liability for failure to meet the goal shall be $1,000,000,

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which shall be assessed as follows: a large electric utility
shall pay $665,000, and a medium electric utility shall pay
$335,000. In addition, the responsibility for implementing the
energy efficiency measures of the utility making the payment
shall be transferred to the Illinois Power Agency if, after 3
years, or in any subsequent 3-year period, the utility fails to
meet the efficiency standard specified in subsection (b) of
this Section, as modified by subsections (d) and (e). The
Agency shall implement a competitive procurement program to
procure resources necessary to meet the standards specified in
this Section as modified by subsections (d) and (e), with costs
for those resources to be recovered in the same manner as
products purchased through the procurement plan as provided in
Section 16-111.5. The Director shall implement this
requirement in connection with the procurement plan as provided
in Section 16-111.5.
For purposes of this Section, (i) a "large electric
utility" is an electric utility that, on December 31, 2005,
served more than 2,000,000 electric customers in Illinois; (ii)
a "medium electric utility" is an electric utility that, on
December 31, 2005, served 2,000,000 or fewer but more than
100,000 electric customers in Illinois; and (iii) Illinois
electric utilities that are affiliated by virtue of a common
parent company are considered a single electric utility.
(j) If, after 3 years, or any subsequent 3-year period, the
Department fails to implement the Department's share of energy

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efficiency measures required by the standards in subsection
(b), then the Illinois Power Agency may assume responsibility
for and control of the Department's share of the required
energy efficiency measures. The Agency shall implement a
competitive procurement program to procure resources necessary
to meet the standards specified in this Section, with the costs
of these resources to be recovered in the same manner as
provided for the Department in this Section.
(k) No electric utility shall be deemed to have failed to
meet the energy efficiency standards to the extent any such
failure is due to a failure of the Department or the Agency.
(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;
96-1000, eff. 7-2-10; 97-616, eff. 10-26-11; 97-841, eff.
7-20-12.)
(220 ILCS 5/8-104)
Sec. 8-104. Natural gas energy efficiency programs.
(a) It is the policy of the State that natural gas
utilities and the Department of Commerce and Economic
Opportunity are required to use cost-effective energy
efficiency to reduce direct and indirect costs to consumers. It
serves the public interest to allow natural gas utilities to
recover costs for reasonably and prudently incurred expenses
for cost-effective energy efficiency measures.
(b) For purposes of this Section, "energy efficiency" means
measures that reduce the amount of energy required to achieve a

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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. "Cost-effective" and "cost-effective"
means that the measures satisfy the total resource cost test
which, 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 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
system and the participant in the delivery of those efficiency
measures, as well as other quantifiable societal benefits,
including avoided electric utility costs, 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.
The low-income programs described in item (4) of subsection (f)
of this Section shall not be required to meet the total
resource cost test.
(c) Natural gas utilities shall implement cost-effective

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energy efficiency measures to meet at least the following
natural gas savings requirements, which shall be based upon the
total amount of gas delivered to retail customers, other than
the customers described in subsection (m) of this Section,
during calendar year 2009 multiplied by the applicable
percentage. Natural gas utilities may comply with this Section
by meeting the annual incremental savings goal in the
applicable year or by showing that total savings associated
with measures implemented after May 31, 2011 were equal to the
sum of each annual incremental savings requirement from May 31,
2011 through the end of the applicable year:
(1) 0.2% by May 31, 2012;
(2) an additional 0.4% by May 31, 2013, increasing
total savings to .6%;
(3) an additional 0.6% by May 31, 2014, increasing
total savings to 1.2%;
(4) an additional 0.8% by May 31, 2015, increasing
total savings to 2.0%;
(5) an additional 1% by May 31, 2016, increasing total
savings to 3.0%;
(6) an additional 1.2% by May 31, 2017, increasing
total savings to 4.2%;
(7) an additional 1.4% by May 31, 2018, increasing
total savings to 5.6%;
(8) an additional 1.5% by May 31, 2019, increasing
total savings to 7.1%; and

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(9) an additional 1.5% in each 12-month period
thereafter.
(d) Notwithstanding the requirements of subsection (c) of
this Section, a natural gas utility shall limit the amount of
energy efficiency implemented in any 3-year reporting period
established by subsection (f) of Section 8-104 of this Act, by
an amount necessary to limit the estimated average increase in
the amounts paid by retail customers in connection with natural
gas service to no more than 2% in the applicable 3-year
reporting period. The energy savings requirements in
subsection (c) of this Section may be reduced by the Commission
for the subject plan, if the utility demonstrates by
substantial evidence that it is highly unlikely that the
requirements could be achieved without exceeding the
applicable spending limits in any 3-year reporting period. No
later than September 1, 2013, the Commission shall review the
limitation on the amount of energy efficiency measures
implemented pursuant to this Section and report to the General
Assembly, in the report required by subsection (k) of this
Section, its findings as to whether that limitation unduly
constrains the procurement of energy efficiency measures.
(e) Natural gas utilities shall be responsible for
overseeing the design, development, and filing of their
efficiency plans with the Commission. The utility shall utilize
75% of the available funding associated with energy efficiency
programs approved by the Commission, and may outsource various

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aspects of program development and implementation. The
remaining 25% of available funding shall be used by the
Department of Commerce and Economic Opportunity to implement
energy efficiency measures that achieve no less than 20% of the
requirements of subsection (c) of this Section. Such measures
shall be designed in conjunction with the utility and approved
by the Commission. The Department may outsource development and
implementation of energy efficiency measures. A minimum of 10%
of the entire portfolio of cost-effective energy efficiency
measures shall be procured from local government, municipal
corporations, school districts, and community college
districts. Five percent of the entire portfolio of
cost-effective energy efficiency measures may be granted to
local government and municipal corporations for market
transformation initiatives. The Department shall coordinate
the implementation of these measures and shall integrate
delivery of natural gas efficiency programs with electric
efficiency programs delivered pursuant to Section 8-103 of this
Act, unless the Department can show that integration is not
feasible.
The apportionment of the dollars to cover the costs to
implement the Department's share of the portfolio of energy
efficiency measures shall be made to the Department once the
Department has executed rebate agreements, grants, or
contracts for energy efficiency measures and provided
supporting documentation for those rebate agreements, grants,

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and contracts to the utility. The Department is authorized to
adopt any rules necessary and prescribe procedures in order to
ensure compliance by applicants in carrying out the purposes of
rebate agreements for energy efficiency measures implemented
by the Department made under this Section.
The details of the measures implemented by the Department
shall be submitted by the Department to the Commission in
connection with the utility's filing regarding the energy
efficiency measures that the utility implements.
A utility providing approved energy efficiency measures in
this State shall be permitted to recover costs of those
measures 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 and
shall be applicable to the utility's customers other than the
customers described in subsection (m) of this Section. 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.
Each utility shall include, in its recovery of costs, the
costs estimated for both the utility's and the Department's
implementation of energy efficiency measures. Costs collected
by the utility for measures implemented by the Department shall
be submitted to the Department pursuant to Section 605-323 of
the Civil Administrative Code of Illinois, shall be deposited

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into the Energy Efficiency Portfolio Standards Fund, and shall
be used by the Department solely for the purpose of
implementing these measures. A utility shall not be required to
advance any moneys to the Department but only to forward such
funds as it has collected. The Department shall report to the
Commission on an annual basis regarding the costs actually
incurred by the Department in the implementation of the
measures. Any changes to the costs of energy efficiency
measures as a result of plan modifications shall be
appropriately reflected in amounts recovered by the utility and
turned over to the Department.
The portfolio of measures, administered by both the
utilities and the Department, shall, in combination, be
designed to achieve the annual energy savings requirements set
forth in subsection (c) of this Section, as modified by
subsection (d) of this Section.
The utility and the Department shall agree upon a
reasonable portfolio of measures and determine the measurable
corresponding percentage of the savings goals associated with
measures implemented by the Department.
No utility shall be assessed a penalty under subsection (f)
of this Section for failure to make a timely filing if that
failure is the result of a lack of agreement with the
Department with respect to the allocation of responsibilities
or related costs or target assignments. In that case, the
Department and the utility shall file their respective plans

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with the Commission and the Commission shall determine an
appropriate division of measures and programs that meets the
requirements of this Section.
If the Department is unable to meet performance
requirements for the portion of the portfolio implemented by
the Department, then the utility and the Department shall
jointly submit a modified filing to the Commission explaining
the performance shortfall and recommending an appropriate
course going forward, including any program modifications that
may be appropriate in light of the evaluations conducted under
item (8) of subsection (f) of this Section. In this case, the
utility obligation to collect the Department's costs and turn
over those funds to the Department under this subsection (e)
shall continue only if the Commission approves the
modifications to the plan proposed by the Department.
(f) No later than October 1, 2010, each gas utility shall
file an energy efficiency plan with the Commission to meet the
energy efficiency standards through May 31, 2014. Every 3 years
thereafter, each utility shall file, no later than October 1,
an energy efficiency plan with the Commission. If a utility
does not file such a plan by October 1 of the applicable year,
then it shall face a penalty of $100,000 per day until the plan
is filed. Each utility's plan shall set forth the utility's
proposals to meet the utility's portion of the energy
efficiency standards identified in subsection (c) of this
Section, as modified by subsection (d) of this Section, taking

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into account the unique circumstances of the utility's service
territory. The Commission shall seek public comment on the
utility's plan and shall issue an order approving or
disapproving each plan. 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 after the
disapproval, 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
measures. Penalties shall be deposited into the Energy
Efficiency Trust Fund and the cost of any such penalties may
not be recovered from ratepayers. In submitting proposed energy
efficiency plans and funding levels to meet the savings goals
adopted by this Act the utility shall:
(1) Demonstrate that its proposed energy efficiency
measures will achieve the requirements that are identified
in subsection (c) of this Section, as modified by
subsection (d) of this Section.
(2) Present specific proposals to implement new
building and appliance standards that have been placed into
effect.
(3) Present estimates of the total amount paid for gas

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service expressed on a per therm basis associated with the
proposed portfolio of measures designed to meet the
requirements that are identified in subsection (c) of this
Section, as modified by subsection (d) of this Section.
(4) Coordinate with the Department to present a
portfolio of energy efficiency measures proportionate to
the share of total annual utility revenues in Illinois from
households at or below 150% of the poverty level. Such
programs shall be targeted to households with incomes at or
below 80% of area median income.
(5) Demonstrate that its overall portfolio of energy
efficiency measures, not including programs covered by
item (4) of this subsection (f), are cost-effective using
the total resource cost test and represent a diverse cross
section of opportunities for customers of all rate classes
to participate in the programs.
(6) Demonstrate that a gas utility affiliated with an
electric utility that is required to comply with Section
8-103 of this Act has integrated gas and electric
efficiency measures into a single program that reduces
program or participant costs and appropriately allocates
costs to gas and electric ratepayers. The Department shall
integrate all gas and electric programs it delivers in any
such utilities' service territories, unless the Department
can show that integration is not feasible or appropriate.
(7) Include a proposed cost recovery tariff mechanism

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to fund the proposed energy efficiency measures and to
ensure the recovery of the prudently and reasonably
incurred costs of Commission-approved programs.
(8) Provide for quarterly status reports tracking
implementation of and expenditures for the utility's
portfolio of measures and the Department's portfolio of
measures, an annual independent review, and a full
independent evaluation of the 3-year results of the
performance and the cost-effectiveness of the utility's
and Department's portfolios of measures and 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 3-year period.
(g) No more than 3% of expenditures on energy efficiency
measures may be allocated for demonstration of breakthrough
equipment and devices.
(h) Illinois natural gas utilities that are affiliated by
virtue of a common parent company may, at the utilities'
request, be considered a single natural gas utility for
purposes of complying with this Section.
(i) If, after 3 years, a gas utility fails to meet the
efficiency standard specified in subsection (c) of this Section
as modified by subsection (d), then it shall make a
contribution to the Low-Income Home Energy Assistance Program.

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The total liability for failure to meet the goal shall be
assessed as follows:
(1) a large gas utility shall pay $600,000;
(2) a medium gas utility shall pay $400,000; and
(3) a small gas utility shall pay $200,000.
For purposes of this Section, (i) a "large gas utility" is
a gas utility that on December 31, 2008, served more than
1,500,000 gas customers in Illinois; (ii) a "medium gas
utility" is a gas utility that on December 31, 2008, served
fewer than 1,500,000, but more than 500,000 gas customers in
Illinois; and (iii) a "small gas utility" is a gas utility that
on December 31, 2008, served fewer than 500,000 and more than
100,000 gas customers in Illinois. The costs of this
contribution may not be recovered from ratepayers.
If a gas utility fails to meet the efficiency standard
specified in subsection (c) of this Section, as modified by
subsection (d) of this Section, in any 2 consecutive 3-year
planning periods, then the responsibility for implementing the
utility's energy efficiency measures shall be transferred to an
independent program administrator selected by the Commission.
Reasonable and prudent costs incurred by the independent
program administrator to meet the efficiency standard
specified in subsection (c) of this Section, as modified by
subsection (d) of this Section, may be recovered from the
customers of the affected gas utilities, other than customers
described in subsection (m) of this Section. The utility shall

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provide the independent program administrator with all
information and assistance necessary to perform the program
administrator's duties including but not limited to customer,
account, and energy usage data, and shall allow the program
administrator to include inserts in customer bills. The utility
may recover reasonable costs associated with any such
assistance.
(j) No utility shall be deemed to have failed to meet the
energy efficiency standards to the extent any such failure is
due to a failure of the Department.
(k) Not later than January 1, 2012, the Commission shall
develop and solicit public comment on a plan to foster
statewide coordination and consistency between statutorily
mandated natural gas and electric energy efficiency programs to
reduce program or participant costs or to improve program
performance. Not later than September 1, 2013, the Commission
shall issue a report to the General Assembly containing its
findings and recommendations.
(l) This Section does not apply to a gas utility that on
January 1, 2009, provided gas service to fewer than 100,000
customers in Illinois.
(m) Subsections (a) through (k) of this Section do not
apply to customers of a natural gas utility that have a North
American Industry Classification System code number that is
22111 or any such code number beginning with the digits 31, 32,
or 33 and (i) annual usage in the aggregate of 4 million therms

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or more within the service territory of the affected gas
utility or with aggregate usage of 8 million therms or more in
this State and complying with the provisions of item (l) of
this subsection (m); or (ii) using natural gas as feedstock and
meeting the usage requirements described in item (i) of this
subsection (m), to the extent such annual feedstock usage is
greater than 60% of the customer's total annual usage of
natural gas.
(1) Customers described in this subsection (m) of this
Section shall apply, on a form approved on or before
October 1, 2009 by the Department, to the Department to be
designated as a self-directing customer ("SDC") or as an
exempt customer using natural gas as a feedstock from which
other products are made, including, but not limited to,
feedstock for a hydrogen plant, on or before the 1st day of
February, 2010. Thereafter, application may be made not
less than 6 months before the filing date of the gas
utility energy efficiency plan described in subsection (f)
of this Section; however, a new customer that commences
taking service from a natural gas utility after February 1,
2010 may apply to become a SDC or exempt customer up to 30
days after beginning service. Such application shall
contain the following:
(A) the customer's certification that, at the time
of its application, it qualifies to be a SDC or exempt
customer described in this subsection (m) of this

SB2365 Engrossed - 42 - LRB098 06614 MGM 36657 b
Section;
(B) in the case of a SDC, the customer's
certification that it has established or will
establish by the beginning of the utility's 3-year
planning period commencing subsequent to the
application, and will maintain for accounting
purposes, an energy efficiency reserve account and
that the customer will accrue funds in said account to
be held for the purpose of funding, in whole or in
part, energy efficiency measures of the customer's
choosing, which may include, but are not limited to,
projects involving combined heat and power systems
that use the same energy source both for the generation
of electrical or mechanical power and the production of
steam or another form of useful thermal energy or the
use of combustible gas produced from biomass, or both;
(C) in the case of a SDC, the customer's
certification that annual funding levels for the
energy efficiency reserve account will be equal to 2%
of the customer's cost of natural gas, composed of the
customer's commodity cost and the delivery service
charges paid to the gas utility, or $150,000, whichever
is less;
(D) in the case of a SDC, the customer's
certification that the required reserve account
balance will be capped at 3 years' worth of accruals

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and that the customer may, at its option, make further
deposits to the account to the extent such deposit
would increase the reserve account balance above the
designated cap level;
(E) in the case of a SDC, the customer's
certification that by October 1 of each year, beginning
no sooner than October 1, 2012, the customer will
report to the Department information, for the 12-month
period ending May 31 of the same year, on all deposits
and reductions, if any, to the reserve account during
the reporting year, and to the extent deposits to the
reserve account in any year are in an amount less than
$150,000, the basis for such reduced deposits; reserve
account balances by month; a description of energy
efficiency measures undertaken by the customer and
paid for in whole or in part with funds from the
reserve account; an estimate of the energy saved, or to
be saved, by the measure; and that the report shall
include a verification by an officer or plant manager
of the customer or by a registered professional
engineer or certified energy efficiency trade
professional that the funds withdrawn from the reserve
account were used for the energy efficiency measures;
(F) in the case of an exempt customer, the
customer's certification of the level of gas usage as
feedstock in the customer's operation in a typical year

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and that it will provide information establishing this
level, upon request of the Department;
(G) in the case of either an exempt customer or a
SDC, the customer's certification that it has provided
the gas utility or utilities serving the customer with
a copy of the application as filed with the Department;
(H) in the case of either an exempt customer or a
SDC, certification of the natural gas utility or
utilities serving the customer in Illinois including
the natural gas utility accounts that are the subject
of the application; and
(I) in the case of either an exempt customer or a
SDC, a verification signed by a plant manager or an
authorized corporate officer attesting to the
truthfulness and accuracy of the information contained
in the application.
(2) The Department shall review the application to
determine that it contains the information described in
provisions (A) through (I) of item (1) of this subsection
(m), as applicable. The review shall be completed within 30
days after the date the application is filed with the
Department. Absent a determination by the Department
within the 30-day period, the applicant shall be considered
to be a SDC or exempt customer, as applicable, for all
subsequent 3-year planning periods, as of the date of
filing the application described in this subsection (m). If

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the Department determines that the application does not
contain the applicable information described in provisions
(A) through (I) of item (1) of this subsection (m), it
shall notify the customer, in writing, of its determination
that the application does not contain the required
information and identify the information that is missing,
and the customer shall provide the missing information
within 15 working days after the date of receipt of the
Department's notification.
(3) The Department shall have the right to audit the
information provided in the customer's application and
annual reports to ensure continued compliance with the
requirements of this subsection. Based on the audit, if the
Department determines the customer is no longer in
compliance with the requirements of items (A) through (I)
of item (1) of this subsection (m), as applicable, the
Department shall notify the customer in writing of the
noncompliance. The customer shall have 30 days to establish
its compliance, and failing to do so, may have its status
as a SDC or exempt customer revoked by the Department. The
Department shall treat all information provided by any
customer seeking SDC status or exemption from the
provisions of this Section as strictly confidential.
(4) Upon request, or on its own motion, the Commission
may open an investigation, no more than once every 3 years
and not before October 1, 2014, to evaluate the

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effectiveness of the self-directing program described in
this subsection (m).
(n) The applicability of this Section to customers
described in subsection (m) of this Section is conditioned on
the existence of the SDC program. In no event will any
provision of this Section apply to such customers after January
1, 2020.
(Source: P.A. 96-33, eff. 7-10-09; 97-813, eff. 7-13-12;
97-841, eff. 7-20-12.)
Section 99. Effective date. This Act takes effect upon
becoming law.