Public Act 098-0586
 
SB2350 EnrolledLRB098 10156 CEL 40315 b



    AN ACT concerning regulation.

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 




 
    Section 5. The Public Utilities Act is amended  by changing 
Sections 16-111.7 and 19-140 as follows:
 
    (220 ILCS 5/16-111.7)

    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, 
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' 
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 
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 
        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 
    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 
    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.
    (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
        (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 
supply customers.

(Source: P.A. 96-33, eff. 7-10-09; 97-616, eff. 10-26-11.)
 
    (220 ILCS 5/19-140)

    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.)
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.