Rep. Robyn Gabel

Filed: 4/1/2019

 

 


 

 


 
10100HB2855ham001LRB101 07594 RJF 58668 a

1
AMENDMENT TO HOUSE BILL 2855

2    AMENDMENT NO. ______. Amend House Bill 2855 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Public Utilities Act is amended by adding
5Section 16-107.8 as follows:
 
6    (220 ILCS 5/16-107.8 new)
7    Sec. 16-107.8. Beneficial electrification.
8    (a) The purpose of this Section is to decrease reliance on
9fossil fuels, reduce pollution from the transportation sector,
10increase access to electrification for all customers, and
11ensure that electric vehicle adoption and increased
12electricity usage demand do not place significant additional
13burdens on the electric system.
14    (b) For the purposes of this Section:
15    "Beneficial electrification programs" means programs that
16replace fossil fuel use and improve electric grid operation.

 

 

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1Beneficial electrification programs should provide for
2incentives such that customers are induced to use electricity
3at times of low overall system usage or at times when
4generation from renewable energy sources is high. "Beneficial
5electrification programs" includes one of the following:
6        (1) time-of-use electric rates;
7        (2) hourly pricing electric rates;
8        (3) charging rates set by electric vehicle service
9    providers that encourage off-peak charging;
10        (4) optimized charging programs;
11        (5) electric vehicle-to-grid;
12        (6) demand response;
13        (7) renewable energy generation located in close
14    proximity to the intended energy user; and
15        (8) other such programs as defined by the Commission.
16    "Optimized charging programs" means programs whereby
17owners of electric vehicles can set their vehicles to be
18charged based on the electric system's current demand, retail
19or wholesale market rates, incentives, the carbon or other
20pollution intensity of the electric generation mix, the
21provision of grid services, efficient use of the electric grid,
22or the availability of clean energy generation. Optimized
23charging programs can be operated by utilities as well as third
24parties.
25    (c) Within 120 days after the effective date of this
26amendatory Act of the 101st General Assembly, the Illinois

 

 

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1Commerce Commission shall initiate a stakeholder workshop
2process, followed by a contested proceeding, to develop a
3cost-benefit test for beneficial electrification policies. The
4stakeholder workshop process shall take into consideration the
5bill reduction benefits of electric vehicle adoption,
6including: (1) the benefit of lower bills for customers who do
7not charge electric vehicles; (2) benefits from electric
8vehicle usage of the distribution system; (3) the avoidance and
9reduction in capacity costs from optimized charging and
10off-peak charging; (4) energy price and cost reductions; (5)
11environmental benefits; and (6) other public interest criteria
12developed by the General Assembly or the Commission.
13    The cost-benefit test shall determine cost-benefit
14valuations that are representative of a variety of ranges of
15electric vehicle adoption scenarios. Upon the conclusion of the
16stakeholder process, the Commission shall issue an order
17establishing an initial Beneficial Electrification
18Cost-Benefit Test within 270 days after initiation of the
19stakeholder workshop process. The Commission shall update its
20Beneficial Electrification Cost-Benefit Test from time to time
21as needed or on petition by any party, taking into
22consideration updated benefits, costs, and structural changes
23based on technological or market advancements, to be used as
24part of subsequent updates to each utility's beneficial
25electrification plan for its proposed new investments. The
26process shall be open and transparent with inclusion of

 

 

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1stakeholder interests, including stakeholders representing
2environmental justice interests.
3    (d) In order to address barriers to public charging, no
4later than December 31, 2020, the Illinois Commerce Commission
5shall open an investigation to explore alternative rate
6structures, additional or alternative rate classes, and cost of
7service studies that would help support and encourage the
8development of public charging stations. If, after notice and
9hearing, the Commission determines that alternative rate
10structures, additional or alternative rate classes, and new
11cost of service studies would encourage development of public
12charging stations, the Commission shall initiate a proceeding
13and issue an order directing each electric utility to implement
14such elements.
15    (e) No later than December 31, 2019, each electric utility
16that serves over 100,000 customers in this State shall initiate
17a stakeholder process to begin development of a 6-year draft
18beneficial electrification plan that helps achieve the
19purposes of this Section and achieves a public benefit per the
20guidelines of the Commission's Beneficial Electrification
21Cost-Benefit Test. Each electric utility shall, in preparing
22its draft plan, consult stakeholder groups, including
23stakeholders representing environmental justice interests.
24Within 120 days after a final order establishing an initial
25Beneficial Electrification Cost-Benefit Test, each electric
26utility shall submit its draft beneficial electrification plan

 

 

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1to the Illinois Commerce Commission for approval. The
2Commission shall initiate a proceeding to review each electric
3utility's draft plan, evaluate the plan against its Beneficial
4Electrification Cost-Benefit Test, and other criteria as
5described in this Section, and shall issue an order within 270
6days after initiation of the proceeding to review each draft
7plan approving the plan or approving the plan with
8modifications.
9    Each draft plan developed under this subsection (e) shall
10specifically address the following:
11        (1) the development and implementation of its
12    time-of-use rate, and its benefit for electric vehicles and
13    for all customers;
14        (2) the development of optimized charging programs to
15    achieve savings identified in the Beneficial
16    Electrification Cost-Benefit Test established by the
17    Commission, and new contracts and compensation for
18    services in those programs, through signals that allow
19    electric vehicle charging to respond to local system
20    conditions, manage critical peak periods, serve as a demand
21    response or clean peak program resource, and maximize
22    renewable energy utilization and integration into the
23    grid;
24        (3) an engineering analysis and stakeholder process to
25    determine the project impacts of electrification on
26    electric circuit loads, demand, and other system needs,

 

 

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1    using as inputs projected locations on the electric grid of
2    planned and anticipated electric vehicle adoption,
3    charging technology, charging behavior, and other impacts
4    from the adoption of advanced energy technology,
5    including, but not limited to, renewable energy
6    technologies, energy storage, energy efficiency, and
7    demand response;
8        (4) plans to address environmental justice interests
9    and the provision of opportunities for residents and
10    businesses in environmental justice communities to
11    directly benefit from transportation electrification;
12        (5) plans to increase access to Level 3 Public Electric
13    Vehicle Charging Infrastructure located along
14    transportation corridors to serve vehicles that need
15    quicker charging times and vehicles of persons who have no
16    other access to charging infrastructure, regardless of
17    whether those projects participate in optimized charging
18    programs;
19        (6) coordination and cohesion with electric vehicle
20    and electric vehicle charging equipment incentives
21    established by any agency, department, board, or
22    commission of the State of Illinois;
23        (7) the development of online tools, applications, and
24    data sharing that provide essential information to those
25    charging electric vehicles, and enable the automated
26    charging response to price signals, emission signals,

 

 

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1    real-time renewable generation production, and other
2    Commission-approved or customer-desired indicators of
3    beneficial charging times;
4        (8) customer education measures, including a shadow
5    billing option to allow customers to compare current and
6    historical monthly bills under different rate plans, cost
7    calculators to compare electric vehicles costs with
8    internal combustion engine vehicle costs, the use of
9    utility communications for proactive customer engagement
10    on electric vehicles, rate and cost comparison information
11    materials for car dealers and their customers, and direct
12    outreach to diverse communities through community and
13    other organizations; and
14        (9) performance targets, metrics, and remedies for not
15    achieving results as outlined in the Beneficial
16    Electrification Cost-Benefit Test.
17    (f) Each electric utility with an approved beneficial
18electrification plan shall submit an updated beneficial
19electrification plan to the Commission within 2 years after its
20plan approval that includes all elements of subsection (e), any
21additional components as directed by the Illinois Commerce
22Commission in its order approving its initial beneficial
23electrification plan, a report on the performance metrics it
24has achieved, a description of areas for improvement, a revised
25implementation plan, and an analysis of how its revised
26implementation achieves any update to the Commission's

 

 

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1Beneficial Electrification Cost-Benefit Test approved prior to
2the filing of its updated plan.
3    (g) Each electric utility shall be allowed to seek a waiver
4of its Integrated Distribution Company Implementation Plan
5rules to implement the goals of this Section.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".