SB 3453 — ENERGY EFFICIENCY FUND-REBATES

SB3453 EngrossedEnrolled LRB097 18954 CEL 64192 b AN ACT concerning regulation.

(b) As soon as possible after June 1, 2012, and in no event later than July 31, 2012, the Director of Commerce and Economic Opportunity shall certify the balance in the DCEO Energy SB3453 EngrossedEnrolled - 2 - LRB097 18954 CEL 64192 b Projects Fund, less any federal moneys and less any amounts obligated, and the State Comptroller shall transfer such amount from the DCEO Energy Projects Fund to the Energy Efficiency Portfolio Standards Fund.

For purposes of this Section, the SB3453 EngrossedEnrolled - 3 - LRB097 18954 CEL 64192 b terms "energy-efficiency", "demand-response", "electric utility", and "total resource cost test" shall have the meanings set forth in the Illinois Power Agency Act.

and SB3453 EngrossedEnrolled - 4 - LRB097 18954 CEL 64192 b (8) 2% of energy delivered in the year commencing June 1, 2015 and each year thereafter.

(3) in 2010, the greater of an additional 0.5% of the SB3453 EngrossedEnrolled - 5 - LRB097 18954 CEL 64192 b 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;

(e) Electric utilities shall be responsible for overseeing SB3453 EngrossedEnrolled - 6 - LRB097 18954 CEL 64192 b the design, development, and filing of energy efficiency and demand-response plans with the Commission.

The Department is authorized to adopt any rules necessary and prescribe procedures in order to ensure compliance by applicants in carrying out the purposes SB3453 EngrossedEnrolled - 7 - LRB097 18954 CEL 64192 b of rebate agreements for energy efficiency measures implemented by the Department made under this Section.

A utility shall not be required to advance any moneys SB3453 EngrossedEnrolled - 8 - LRB097 18954 CEL 64192 b to the Department but only to forward such funds as it has collected.

If the Department is unable to meet incremental annual SB3453 EngrossedEnrolled - 9 - LRB097 18954 CEL 64192 b 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.

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 (b) and the demand-response standards SB3453 EngrossedEnrolled - 10 - LRB097 18954 CEL 64192 b 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.

SB3453 EngrossedEnrolled - 11 - LRB097 18954 CEL 64192 b (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).

(7) Provide for an annual independent evaluation of the performance of the cost-effectiveness of the utility's portfolio of measures and the Department's portfolio of SB3453 EngrossedEnrolled - 12 - LRB097 18954 CEL 64192 b 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.

a large electric utility SB3453 EngrossedEnrolled - 13 - LRB097 18954 CEL 64192 b shall pay $665,000, and a medium electric utility shall pay $335,000.

(j) If, after 3 years, or any subsequent 3-year period, the Department fails to implement the Department's share of energy efficiency measures required by the standards in subsection SB3453 EngrossedEnrolled - 14 - LRB097 18954 CEL 64192 b (b), then the Illinois Power Agency may assume responsibility for and control of the Department's share of the required energy efficiency measures.

(b) For purposes of this Section, "energy efficiency" means measures that reduce the amount of energy required to achieve a given end use and "cost-effective" means that the measures satisfy the total resource cost test which, for purposes of SB3453 EngrossedEnrolled - 15 - LRB097 18954 CEL 64192 b this Section, means a standard that is met if, for an investment in energy efficiency, the benefit-cost ratio is greater than one.

(c) Natural gas utilities shall implement cost-effective 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, SB3453 EngrossedEnrolled - 16 - LRB097 18954 CEL 64192 b during calendar year 2009 multiplied by the applicable percentage.

(d) Notwithstanding the requirements of subsection (c) of this Section, a natural gas utility shall limit the amount of SB3453 EngrossedEnrolled - 17 - LRB097 18954 CEL 64192 b 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 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 SB3453 EngrossedEnrolled - 18 - LRB097 18954 CEL 64192 b requirements of subsection (c) of this Section.

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 SB3453 EngrossedEnrolled - 19 - LRB097 18954 CEL 64192 b implemented by the Department made under this Section.

A utility shall not be required to advance any moneys to the Department but only to forward such SB3453 EngrossedEnrolled - 20 - LRB097 18954 CEL 64192 b funds as it has collected.

If the Department is unable to meet performance SB3453 EngrossedEnrolled - 21 - LRB097 18954 CEL 64192 b 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.

If the Commission disapproves a plan, SB3453 EngrossedEnrolled - 22 - LRB097 18954 CEL 64192 b 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.

SB3453 EngrossedEnrolled - 23 - LRB097 18954 CEL 64192 b (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.

(8) Provide for quarterly status reports tracking SB3453 EngrossedEnrolled - 24 - LRB097 18954 CEL 64192 b 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.

and SB3453 EngrossedEnrolled - 25 - LRB097 18954 CEL 64192 b (3) a small gas utility shall pay $200,000.

The utility shall 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 SB3453 EngrossedEnrolled - 26 - LRB097 18954 CEL 64192 b administrator to include inserts in customer bills.

or (ii) using natural gas as feedstock and SB3453 EngrossedEnrolled - 27 - LRB097 18954 CEL 64192 b meeting the usage requirements described in item (i) of this subsection (m), to the extent such annual feedstock usage is greater than that 60% of the customer's total annual usage of natural gas.

(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 SB3453 EngrossedEnrolled - 28 - LRB097 18954 CEL 64192 b 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;

SB3453 EngrossedEnrolled - 29 - LRB097 18954 CEL 64192 b (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;

(G) in the case of either an exempt customer or a SDC, the customer's certification that it has provided SB3453 EngrossedEnrolled - 30 - LRB097 18954 CEL 64192 b the gas utility or utilities serving the customer with a copy of the application as filed with the Department;

If 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 SB3453 EngrossedEnrolled - 31 - LRB097 18954 CEL 64192 b 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.

(n) The applicability of this Section to customers described in subsection (m) of this Section is conditioned on SB3453 EngrossedEnrolled - 32 - LRB097 18954 CEL 64192 b the existence of the SDC program.