Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3935 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3935 Introduced 4/29/2024, by Sen. Celina Villanueva SYNOPSIS AS INTRODUCED: See Index Amends the Public Utilities Act. Provides that a gas utility may cease providing service if the Illinois Commerce Commission determines that adequate substitute service is available at a reasonable cost to support the existing end uses of the affected utility customers. Provides for cost-effective energy efficiency measures for natural gas utilities that supersede existing provisions concerning natural gas energy efficiency programs and take effect beginning January 1, 2025. Provides that gas main and gas service extension policies shall be based on the principle that the full incremental cost associated with new development and growth shall be borne by the customers that cause those incremental costs. Provides that, no later than 60 days after the effective date of the amendatory Act, the Commission shall initiate a docketed rulemaking reviewing each gas public utility tariff that provides for gas main and gas service extensions without additional charge to new customers in excess of the default extensions as specified in administrative rule. Adds the Clean Building Heating Law Article to the Act, with provisions concerning emissions standards for heating in buildings, as well as related and other provisions. Adds the 2050 Heat Decarbonization Standard Article to the Act, with provisions concerning options for compliance, measures for customer emission reduction, customer emission reductions, tradable clean heat credits, banking of emission reductions, equity in emission reductions, enforcement, the 2050 Heat Decarbonization Pathways Study, gas infrastructure planning, a study on gas utility financial incentive reform, and reporting requirements. Adds the Statewide Navigator Program Law Article to the Act, with provisions concerning creation of a statewide navigator program, as well as related and other provisions. Amends the Energy Transition Act to add electrification industries to clean energy jobs. Effective immediately. LRB103 40383 LNS 72670 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3935 Introduced 4/29/2024, by Sen. Celina Villanueva SYNOPSIS AS INTRODUCED: See Index See Index Amends the Public Utilities Act. Provides that a gas utility may cease providing service if the Illinois Commerce Commission determines that adequate substitute service is available at a reasonable cost to support the existing end uses of the affected utility customers. Provides for cost-effective energy efficiency measures for natural gas utilities that supersede existing provisions concerning natural gas energy efficiency programs and take effect beginning January 1, 2025. Provides that gas main and gas service extension policies shall be based on the principle that the full incremental cost associated with new development and growth shall be borne by the customers that cause those incremental costs. Provides that, no later than 60 days after the effective date of the amendatory Act, the Commission shall initiate a docketed rulemaking reviewing each gas public utility tariff that provides for gas main and gas service extensions without additional charge to new customers in excess of the default extensions as specified in administrative rule. Adds the Clean Building Heating Law Article to the Act, with provisions concerning emissions standards for heating in buildings, as well as related and other provisions. Adds the 2050 Heat Decarbonization Standard Article to the Act, with provisions concerning options for compliance, measures for customer emission reduction, customer emission reductions, tradable clean heat credits, banking of emission reductions, equity in emission reductions, enforcement, the 2050 Heat Decarbonization Pathways Study, gas infrastructure planning, a study on gas utility financial incentive reform, and reporting requirements. Adds the Statewide Navigator Program Law Article to the Act, with provisions concerning creation of a statewide navigator program, as well as related and other provisions. Amends the Energy Transition Act to add electrification industries to clean energy jobs. Effective immediately. LRB103 40383 LNS 72670 b LRB103 40383 LNS 72670 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3935 Introduced 4/29/2024, by Sen. Celina Villanueva SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Public Utilities Act. Provides that a gas utility may cease providing service if the Illinois Commerce Commission determines that adequate substitute service is available at a reasonable cost to support the existing end uses of the affected utility customers. Provides for cost-effective energy efficiency measures for natural gas utilities that supersede existing provisions concerning natural gas energy efficiency programs and take effect beginning January 1, 2025. Provides that gas main and gas service extension policies shall be based on the principle that the full incremental cost associated with new development and growth shall be borne by the customers that cause those incremental costs. Provides that, no later than 60 days after the effective date of the amendatory Act, the Commission shall initiate a docketed rulemaking reviewing each gas public utility tariff that provides for gas main and gas service extensions without additional charge to new customers in excess of the default extensions as specified in administrative rule. Adds the Clean Building Heating Law Article to the Act, with provisions concerning emissions standards for heating in buildings, as well as related and other provisions. Adds the 2050 Heat Decarbonization Standard Article to the Act, with provisions concerning options for compliance, measures for customer emission reduction, customer emission reductions, tradable clean heat credits, banking of emission reductions, equity in emission reductions, enforcement, the 2050 Heat Decarbonization Pathways Study, gas infrastructure planning, a study on gas utility financial incentive reform, and reporting requirements. Adds the Statewide Navigator Program Law Article to the Act, with provisions concerning creation of a statewide navigator program, as well as related and other provisions. Amends the Energy Transition Act to add electrification industries to clean energy jobs. Effective immediately.
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8	8	A BILL FOR
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11	11	1 AN ACT concerning regulation.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Energy Transition Act is amended by
15	15	5 changing Section 5-25 as follows:
16	16	6 (20 ILCS 730/5-25)
17	17	7 (Section scheduled to be repealed on September 15, 2045)
18	18	8 Sec. 5-25. Clean Jobs Curriculum.
19	19	9 (a) As used in this Section, "clean energy jobs", subject
20	20	10 to administrative rules, means jobs in the solar energy, wind
21	21	11 energy, energy efficiency, energy storage, solar thermal,
22	22	12 green hydrogen, geothermal, electric vehicle industries,
23	23	13 electrification industries, other renewable energy industries,
24	24	14 industries achieving emission reductions, and other related
25	25	15 sectors including related industries that manufacture,
26	26	16 develop, build, maintain, or provide ancillary services to
27	27	17 renewable energy resources or energy efficiency products or
28	28	18 services, including the manufacture and installation of
29	29	19 healthier building materials that contain fewer hazardous
30	30	20 chemicals. "Clean energy jobs" includes administrative, sales,
31	31	21 other support functions within these industries and other
32	32	22 related sector industries.
33	33	23 (b) The Department shall convene a comprehensive
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3935 Introduced 4/29/2024, by Sen. Celina Villanueva SYNOPSIS AS INTRODUCED:
38	38	See Index See Index
39	39	See Index
40	40	Amends the Public Utilities Act. Provides that a gas utility may cease providing service if the Illinois Commerce Commission determines that adequate substitute service is available at a reasonable cost to support the existing end uses of the affected utility customers. Provides for cost-effective energy efficiency measures for natural gas utilities that supersede existing provisions concerning natural gas energy efficiency programs and take effect beginning January 1, 2025. Provides that gas main and gas service extension policies shall be based on the principle that the full incremental cost associated with new development and growth shall be borne by the customers that cause those incremental costs. Provides that, no later than 60 days after the effective date of the amendatory Act, the Commission shall initiate a docketed rulemaking reviewing each gas public utility tariff that provides for gas main and gas service extensions without additional charge to new customers in excess of the default extensions as specified in administrative rule. Adds the Clean Building Heating Law Article to the Act, with provisions concerning emissions standards for heating in buildings, as well as related and other provisions. Adds the 2050 Heat Decarbonization Standard Article to the Act, with provisions concerning options for compliance, measures for customer emission reduction, customer emission reductions, tradable clean heat credits, banking of emission reductions, equity in emission reductions, enforcement, the 2050 Heat Decarbonization Pathways Study, gas infrastructure planning, a study on gas utility financial incentive reform, and reporting requirements. Adds the Statewide Navigator Program Law Article to the Act, with provisions concerning creation of a statewide navigator program, as well as related and other provisions. Amends the Energy Transition Act to add electrification industries to clean energy jobs. Effective immediately.
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43	43	A BILL FOR
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49	49	See Index
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68	68	1 stakeholder process that includes representatives from the
69	69	2 State Board of Education, the Illinois Community College
70	70	3 Board, the Department of Labor, community-based organizations,
71	71	4 workforce development providers, labor unions, building
72	72	5 trades, educational institutions, residents of BIPOC and
73	73	6 low-income communities, residents of environmental justice
74	74	7 communities, clean energy businesses, nonprofit organizations,
75	75	8 worker-owned cooperatives, other groups that provide clean
76	76	9 energy jobs opportunities, groups that provide construction
77	77	10 and building trades job opportunities, and other participants
78	78	11 to identify the career pathways and training curriculum needed
79	79	12 for participants to be skilled, work ready, and able to enter
80	80	13 clean energy jobs. The curriculum shall:
81	81	14 (1) identify the core training curricular competency
82	82	15 areas needed to prepare workers to enter clean energy and
83	83	16 related sector jobs;
84	84	17 (2) identify a set of required core cross-training
85	85	18 competencies provided in each training area for clean
86	86	19 energy jobs with the goal of enabling any trainee to
87	87	20 receive a standard set of skills common to multiple
88	88	21 training areas that would provide a foundation for
89	89	22 pursuing a career composed of multiple clean energy job
90	90	23 types;
91	91	24 (3) include approaches to integrate broad occupational
92	92	25 training to provide career entry into the general
93	93	26 construction and building trades sector and any remedial
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104	104	1 education and work readiness support necessary to achieve
105	105	2 educational and professional eligibility thresholds; and
106	106	3 (4) identify on-the-job training formats, where
107	107	4 relevant, and identify suggested trainer certification
108	108	5 standards, where relevant.
109	109	6 (c) The Department shall publish a report that includes
110	110	7 the findings, recommendations, and core curriculum identified
111	111	8 by the stakeholder group and shall post a copy of the report on
112	112	9 its public website. The Department shall convene the process
113	113	10 described to update and modify the recommended curriculum
114	114	11 every 3 years to ensure the curriculum contents are current to
115	115	12 the evolving clean energy industries, practices, and
116	116	13 technologies.
117	117	14 (d) Organizations that receive funding to provide training
118	118	15 under the Clean Jobs Workforce Network Program, including, but
119	119	16 not limited to, community-based and labor-based training
120	120	17 providers, and educational institutions must use the core
121	121	18 curriculum that is developed under this Section.
122	122	19 (Source: P.A. 102-662, eff. 9-15-21.)
123	123	20 Section 10. The Public Utilities Act is amended by
124	124	21 changing Sections 1-102, 8-101, 9-229, 9-241, and 16-111.10
125	125	22 and by adding Sections 1-103, 3-127, 8-104B, 9-228.5, 9-235,
126	126	23 9-254, and 9-255, and Articles XXIII, XXIV, and XXV as
127	127	24 follows:
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138	138	1 (220 ILCS 5/1-102) (from Ch. 111 2/3, par. 1-102)
139	139	2 Sec. 1-102. Findings and Intent. The General Assembly
140	140	3 finds that the health, welfare, and prosperity of all Illinois
141	141	4 citizens require the provision of adequate, efficient,
142	142	5 reliable, affordable, environmentally safe, and least-cost
143	143	6 public utility services at prices which accurately reflect the
144	144	7 long-term cost of such services and which are equitable to all
145	145	8 citizens. It is therefore declared to be the policy of the
146	146	9 State that public utilities shall continue to be regulated
147	147	10 effectively and comprehensively. It is further declared that
148	148	11 the goals and objectives of such regulation shall be to
149	149	12 ensure:
150	150	13 (a) Efficiency: the provision of reliable and
151	151	14 affordable energy services that meet the State's climate
152	152	15 and emissions reduction targets at the lowest societal
153	153	16 least possible cost to the citizens of the State; in such
154	154	17 manner that:
155	155	18 (i) physical, human, and financial resources are
156	156	19 allocated efficiently and equitably;
157	157	20 (ii) all supply and demand options are considered
158	158	21 and evaluated using comparable terms and methods in
159	159	22 order to determine how utilities shall meet State
160	160	23 emissions reduction targets and their customers'
161	161	24 demands for public utility services at the lowest
162	162	25 societal least cost;
163	163	26 (iii) utilities are allowed a sufficient return on
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174	174	1 investment so as to enable them to attract capital in
175	175	2 financial markets at competitive rates;
176	176	3 (iv) tariff rates for the sale of various public
177	177	4 utility services are authorized such that they
178	178	5 accurately reflect the cost of delivering those
179	179	6 services and allow utilities to recover the total
180	180	7 costs prudently and reasonably incurred;
181	181	8 (v) variation in costs by customer class and time
182	182	9 of use is taken into consideration in authorizing
183	183	10 rates for each class.
184	184	11 (b) Environmental Quality: the protection of the
185	185	12 environment, people, and communities from the adverse
186	186	13 external costs of public utility services, including
187	187	14 environmental costs, so that:
188	188	15 (i) environmental costs of proposed actions having
189	189	16 a significant impact on the environment and the
190	190	17 environmental impact of the alternatives are
191	191	18 identified, documented, monetized, included in
192	192	19 assessments of cost, and considered in all aspects of
193	193	20 the regulatory process;
194	194	21 (ii) the prudently and reasonably incurred costs
195	195	22 of environmental controls are recovered.
196	196	23 (c) Reliability: the ability of utilities to provide
197	197	24 consumers with public utility services under varying
198	198	25 demand conditions in such manner that suppliers of public
199	199	26 utility services are able to provide service at varying
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210	210	1 levels of economic reliability giving appropriate
211	211	2 consideration to the costs likely to be incurred as a
212	212	3 result of service interruptions, and to the costs of
213	213	4 increasing or maintaining current levels of reliability
214	214	5 consistent with commitments to consumers.
215	215	6 (d) Equity: the fair treatment of consumers, including
216	216	7 equity investment eligible persons and equity investment
217	217	8 eligible communities, as defined in the Energy Transition
218	218	9 Act, and investors in order that
219	219	10 (i) the public health, safety, and welfare shall
220	220	11 be protected;
221	221	12 (ii) the application of rates is based on public
222	222	13 understandability and acceptance of the reasonableness
223	223	14 of the rate structure and level;
224	224	15 (iii) the cost of supplying public utility
225	225	16 services is allocated to those who cause the costs to
226	226	17 be incurred;
227	227	18 (iv) if factors other than cost of service are
228	228	19 considered in regulatory decisions, the rationale for
229	229	20 these actions is set forth;
230	230	21 (v) regulation allows for orderly transition
231	231	22 periods to accommodate changes in public utility
232	232	23 service markets;
233	233	24 (vi) regulation does not result in undue or
234	234	25 sustained adverse impact on utility earnings;
235	235	26 (vii) the impacts of regulatory actions on all
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246	246	1 sectors of the State are carefully weighed;
247	247	2 (viii) the rates for utility services are
248	248	3 affordable and, therefore, ensure and preserve the
249	249	4 availability and accessibility of such services to all
250	250	5 customers, and customers are not energy burdened or
251	251	6 severely energy burdened citizens.
252	252	7 As used in this subsection (d):
253	253	8 (I) "Energy burdened" means, with respect to a
254	254	9 customer's household, that the household pays 6% or
255	255	10 more of its income toward electricity and gas bills.
256	256	11 (II) "Severely energy burdened" means, with
257	257	12 respect to a customer's household, that the household
258	258	13 pays 10% or more of its income toward electricity and
259	259	14 gas bills.
260	260	15 (e) Affordability: the ability of utilities to ensure
261	261	16 uninterrupted access to essential utility service; to
262	262	17 minimize and reduce over time the number of households who
263	263	18 are energy burdened and severely energy burdened, as
264	264	19 defined in this Act, ideally to zero; and to minimize
265	265	20 disconnections to residential customers in a manner which
266	266	21 ensures that:
267	267	22 (i) all low-income customers, defined as those
268	268	23 whose income is less than or equal to 80% of the area
269	269	24 median income, as defined by the United States
270	270	25 Department of Housing and Urban Development, have
271	271	26 access to a discounted utility rate;
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282	282	1 (ii) low-income customers 65 years of age or older
283	283	2 are not disconnected from essential utility service
284	284	3 due to inability to afford the monthly bill;
285	285	4 (iii) low-income customers with children under the
286	286	5 age of 6 are not disconnected from essential utility
287	287	6 service due to inability to afford the monthly bill;
288	288	7 (iv) persons with medical conditions are not
289	289	8 disconnected from essential utility service if a
290	290	9 medical or qualified professional as described in
291	291	10 subsection (b) of Section 8-202.7 certifies that the
292	292	11 condition will be exacerbated by disconnection from
293	293	12 essential utility service;
294	294	13 (v) disconnection of essential utility service is
295	295	14 not accelerated based on a utility's payment risk
296	296	15 assessment of a customer; and
297	297	16 (vi) a utility assesses whether a customer may be
298	298	17 eligible for energy assistance programs under the
299	299	18 Energy Assistance Act, provides the customer with
300	300	19 specific information on where and how to obtain energy
301	301	20 assistance, and ceases disconnection activity for 60
302	302	21 days to allow the customer to apply for and establish
303	303	22 eligibility for the energy assistance.
304	304	23 It is further declared to be the policy of the State that
305	305	24 this Act shall not apply in relation to motor carriers and rail
306	306	25 carriers as defined in the Illinois Commercial Transportation
307	307	26 Law, or to the Commission in the regulation of such carriers.
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318	318	1 Nothing in this Act shall be construed to limit, restrict,
319	319	2 or mitigate in any way the power and authority of the State's
320	320	3 Attorneys or the Attorney General under the Consumer Fraud and
321	321	4 Deceptive Business Practices Act.
322	322	5 (Source: P.A. 92-22, eff. 6-30-01.)
323	323	6 (220 ILCS 5/1-103 new)
324	324	7 Sec. 1-103. Commission methodologies and metrics. The
325	325	8 Commission shall oversee the objectives identified in Section
326	326	9 1-102 by establishing and implementing methodologies for
327	327	10 tracking each of the following metrics:
328	328	11 (1) Environmental costs: The Commission shall
329	329	12 establish a social cost of greenhouse gases, measured in
330	330	13 dollars per ton of carbon dioxide equivalent, that shall
331	331	14 serve as a monetary estimate of the value of not emitting a
332	332	15 ton of greenhouse gas emissions. The Commission shall
333	333	16 consider prior or existing estimates of the social cost of
334	334	17 carbon issued or adopted by the federal government,
335	335	18 appropriate international bodies, or other appropriate and
336	336	19 reputable scientific organizations. The social cost of
337	337	20 greenhouse gases shall:
338	338	21 (A) estimate the emissions for all relevant
339	339	22 greenhouse gases, including carbon, methane, nitrous
340	340	23 oxide, hydrofluorocarbons and hydrofluoroolefins,
341	341	24 perfluorocarbons, sulfur hexafluoride, and nitrogen
342	342	25 trifluoride;
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353	353	1 (B) consider the fullest geographic and temporal
354	354	2 scope of damages;
355	355	3 (C) for the purposes of this Act, the cost of
356	356	4 greenhouse gas emissions is no less than the cost per
357	357	5 metric ton of carbon dioxide equivalent emissions,
358	358	6 using the 2.5% discount rate, listed in Table ES-1 of
359	359	7 "Technical Support Document: Social Cost of Carbon,
360	360	8 Methane, and Nitrous Oxide Interim Estimates under
361	361	9 Executive Order 13990", a report prepared in support
362	362	10 of federal Executive Order 13990 and dated February
363	363	11 2021.
364	364	12 The Commission must annually adjust the costs
365	365	13 established in this Section to reflect the effect of
366	366	14 inflation and may, at its discretion, set the price at a
367	367	15 higher level than described above, but no lower.
368	368	16 (2) Impacts to public health: The Commission shall
369	369	17 develop a methodology for measuring and monetizing in cost
370	370	18 assessments the public health impacts of pollutants,
371	371	19 including impacts of both indoor and outdoor air quality,
372	372	20 including carbon monoxide and carbon dioxide, nitrogen
373	373	21 oxides, including nitrogen dioxide, particulate matter,
374	374	22 formaldehyde, sulfur dioxide, ozone, and lead. The
375	375	23 Commission shall integrate its methodology into
376	376	24 assessments of utility system planning and supply and
377	377	25 demand-side resource selection.
378	378	26 It is further declared to be the policy of the State that
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389	389	1 this Section does not apply to motor carriers and rail
390	390	2 carriers as defined in the Illinois Commercial Transportation
391	391	3 Law or to the Commission in the regulation of such carriers.
392	392	4 Nothing in this Section shall be construed to limit,
393	393	5 restrict, or mitigate in any way the power and authority of the
394	394	6 State's Attorneys or the Attorney General under the Consumer
395	395	7 Fraud and Deceptive Business Practices Act.
396	396	8 (220 ILCS 5/3-127 new)
397	397	9 Sec. 3-127. Fixed charge. "Fixed charge" means a charge
398	398	10 that is assessed by a public utility as part of its rates, is
399	399	11 equal across all customers or customers of a certain class,
400	400	12 and is not directly proportional to a customer's usage.
401	401	13 (220 ILCS 5/8-101) (from Ch. 111 2/3, par. 8-101)
402	402	14 Sec. 8-101. Duties of public utilities; nondiscrimination.
403	403	15 A public utility shall furnish, provide, and maintain such
404	404	16 service instrumentalities, equipment, and facilities as shall
405	405	17 promote the safety, health, comfort, and convenience of its
406	406	18 patrons, employees, and public and as shall be in all respects
407	407	19 adequate, efficient, just, and reasonable.
408	408	20 All rules and regulations made by a public utility
409	409	21 affecting or pertaining to its charges or service to the
410	410	22 public shall be just and reasonable.
411	411	23 An electric A public utility shall, and a gas utility may,
412	412	24 upon reasonable notice, furnish to all persons who may apply
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423	423	1 therefor and be reasonably entitled thereto, suitable
424	424	2 facilities and service, without discrimination and without
425	425	3 delay. Notwithstanding any other provision of law, a gas
426	426	4 utility may cease providing service if the Commission
427	427	5 determines that adequate substitute service is available at a
428	428	6 reasonable cost to support the existing end uses of the
429	429	7 affected utility customers. Any applicant for gas service
430	430	8 shall receive clear, timely information from the gas utility,
431	431	9 written in plain language, and approved by the Commission
432	432	10 after stakeholder input on incentives and opportunities for
433	433	11 installing, as alternatives to gas, energy-efficient electric
434	434	12 technologies and incentives and opportunities for other energy
435	435	13 efficiency measures, weatherization, demand management, and
436	436	14 distributed energy resource programs. The information provided
437	437	15 must include, among other things, information detailing
438	438	16 electrification incentives in the Inflation Reduction Act and
439	439	17 describing how the applicant can elect to receive the upfront
440	440	18 discounts or tax incentives applicable to the applicant's
441	441	19 electric purchases.
442	442	20 Nothing in this Section shall be construed to prevent a
443	443	21 public utility from accepting payment electronically or by the
444	444	22 use of a customer-preferred financially accredited credit or
445	445	23 debit methodology.
446	446	24 (Source: P.A. 92-22, eff. 6-30-01.)
447	447	25 (220 ILCS 5/8-104B new)
448	448
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458	458	1 Sec. 8-104B. Gas energy efficiency.
459	459	2 (a) As used in this Section:
460	460	3 "Benefit-cost ratio" means the ratio of the net present
461	461	4 value of the total benefits of the measures to the net present
462	462	5 value of the total costs as calculated over the lifetime of the
463	463	6 measures.
464	464	7 "Cost-effective measure" means a measure that satisfies
465	465	8 the total resource cost test.
466	466	9 "Energy efficiency measure" means a measure that reduces
467	467	10 (i) the total Btus of electricity and natural gas and other
468	468	11 utility-delivered gaseous fuels needed to meet an end use or
469	469	12 end uses and (ii) the amount of natural gas and other
470	470	13 utility-delivered gaseous fuels consumed on site, at the home
471	471	14 or business facility, to meet an end use or end uses.
472	472	15 "Total resource cost test" means a standard that is met
473	473	16 if, for an investment in an energy efficiency measure, the
474	474	17 benefit-cost ratio is greater than one. The total resource
475	475	18 cost test quantifies the net savings obtained through the
476	476	19 substitution of demand-side measures for supply resources by
477	477	20 comparing (i) the sum of avoided natural gas utility costs,
478	478	21 representing the benefits that accrue to the natural gas
479	479	22 system and the participant in the delivery of those energy
480	480	23 efficiency measures and including avoided costs associated
481	481	24 with the use of electricity or other fuels, avoided costs
482	482	25 associated with reduced water consumption, and avoided
483	483	26 operation and maintenance costs, as well as other quantifiable
484	484
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494	494	1 societal benefits and (ii) the sum of all incremental costs of
495	495	2 end-use measures, including both utility and participant
496	496	3 contribution costs to administer, deliver, and evaluate each
497	497	4 demand-side measure. In calculating avoided costs, reasonable
498	498	5 estimates shall be included for financial costs likely to be
499	499	6 imposed by future regulation of emissions of greenhouse gases.
500	500	7 In discounting future societal costs and benefits for the
501	501	8 purpose of calculating net present values, a societal discount
502	502	9 rate based on actual, long-term U.S. Treasury bond yields
503	503	10 shall be used. The income-qualified measures described in
504	504	11 paragraphs (5) and (6) of subsection (d) shall not be required
505	505	12 to meet the total resource cost test.
506	506	13 (b) It is the policy of the State for gas utilities to be
507	507	14 required to use cost-effective energy efficiency measures to
508	508	15 reduce delivery load. Requiring investment in cost-effective
509	509	16 energy efficiency measures will reduce direct and indirect
510	510	17 costs to consumers by decreasing environmental impacts,
511	511	18 reducing the amount of natural gas and other utility-delivered
512	512	19 gaseous fuels that need to be purchased, and avoiding or
513	513	20 delaying the need for new transmission, distribution, storage,
514	514	21 and other related infrastructure. Moreover, the public
515	515	22 interest is served by allowing gas utilities to recover costs
516	516	23 for reasonably and prudently incurred expenditures for energy
517	517	24 efficiency measures.
518	518	25 (c) This Section applies to all gas distribution utilities
519	519	26 in the State and supersedes Section 8-104 beginning January 1,
520	520
521	521
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530	530	1 2024.
531	531	2 (d) Natural gas utilities shall implement cost-effective
532	532	3 energy efficiency measures to achieve all of the following
533	533	4 requirements:
534	534	5 (1) Total incremental annual savings shall be equal to
535	535	6 at least 0.6% of annual sales to distribution customers in
536	536	7 2025, 0.8% of such sales in 2026, and at least 1% of such
537	537	8 sales in 2027 and each subsequent year. For the purpose of
538	538	9 calculating savings as a percent of sales to distribution
539	539	10 customers for a given program year, the denominator of
540	540	11 sales to distribution customers shall be annual average
541	541	12 sales over the second, third, and fourth full calendar
542	542	13 years prior to the beginning of the program year.
543	543	14 (2) The savings achieved must have an average life of
544	544	15 at least 12 years.
545	545	16 (3) Savings may not be applied toward achievement of
546	546	17 utility savings goals if the savings arise from the
547	547	18 installation of efficient new gas furnaces, gas boilers,
548	548	19 gas water heaters, or other gas-consuming equipment in a
549	549	20 residential building, such as a single-family,
550	550	21 individually metered multifamily building or a
551	551	22 master-metered multifamily building.
552	552	23 (4) At least 50% of the entire budget for efficiency
553	553	24 programs shall be spent on energy efficiency measures that
554	554	25 reduce space heating needs through improvements to the
555	555	26 efficiency of building envelopes, including, but not
556	556
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566	566	1 limited to, insulation measures and efficient windows and
567	567	2 energy efficiency measures that reduce air leakage through
568	568	3 improvements to systems for distributing heat, including,
569	569	4 but not limited to, duct leakage reduction, duct
570	570	5 insulation, or pipe insulation in buildings or through
571	571	6 improved heating systems controls, including, but not
572	572	7 limited to, advanced thermostats and demand control
573	573	8 ventilation. Spending on efficient furnaces, efficient
574	574	9 boilers, or other efficient heating systems is permitted
575	575	10 within business efficiency programs but does not count
576	576	11 toward this minimum requirement for spending on building
577	577	12 envelope, heating distribution, and control efficiencies.
578	578	13 Spending on income-qualified building envelope measures,
579	579	14 heating distribution system measures, and heating controls
580	580	15 does count toward this requirement. The portion of
581	581	16 portfolio spending on program marketing, training of
582	582	17 installers, audits of buildings, inspections of work
583	583	18 performed, and other administrative and technical expenses
584	584	19 that are clearly tied to promotion or installation of
585	585	20 building envelope or heating distribution system measures
586	586	21 shall count toward this requirement. If this minimum
587	587	22 requirement is not met, any performance incentive earned
588	588	23 under subsection (h) should be reduced by the percentage
589	589	24 point level of shortfall in meeting this requirement.
590	590	25 (5) The portion of the entire budget for efficiency
591	591	26 programs that is spent on efficiency measures for
592	592
593	593
594	594
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602	602	1 income-qualified households shall be the greater of 20% or
603	603	2 5 percentage points more than the proportion of total
604	604	3 residential and business customer gas sales going to
605	605	4 income-qualified households. For purposes of this Section,
606	606	5 households at or below 80% of area median income are
607	607	6 income-qualified. At least 80% of spending on measures in
608	608	7 programs targeted at income-qualified households shall be
609	609	8 delivered through whole building weatherization programs
610	610	9 and spent on measures that reduce space heating needs
611	611	10 through improvements to the building envelope, heating
612	612	11 distribution systems, or heating controls. The utilities
613	613	12 shall invest in health and safety measures appropriate and
614	614	13 necessary for comprehensively weatherizing the homes and
615	615	14 multifamily buildings of income-qualified households, with
616	616	15 up to 15% of income-qualified program spending made
617	617	16 available for such purposes. The ratio of spending on
618	618	17 efficiency programs targeted at multifamily buildings of
619	619	18 income-qualified households to spending on energy
620	620	19 efficiency programs targeted at single-family buildings of
621	621	20 income-qualified households shall be designed to achieve
622	622	21 levels of savings from each building type that are
623	623	22 approximately proportional to the magnitude of
624	624	23 cost-effective lifetime savings potential in each building
625	625	24 type. The gas utilities shall participate in a Low-Income
626	626	25 Energy Efficiency Accountability Committee as established
627	627	26 in Section 8-103B.
628	628
629	629
630	630
631	631
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638	638	1 Gas utilities must conduct customer outreach and
639	639	2 education efforts in equity investment eligible
640	640	3 communities in order to provide notice of and explanations
641	641	4 concerning the following types of programs:
642	642	5 (A) energy efficiency programs, the Illinois Solar
643	643	6 for All Program, and whole home retrofit programs that
644	644	7 reduce natural gas usage;
645	645	8 (B) income-qualified financial assistance
646	646	9 programs, including rebate programs from the federal
647	647	10 government; and
648	648	11 (C) general education programs designed to explain
649	649	12 utility bills and the decisions customers can make to
650	650	13 lower energy usage.
651	651	14 These outreach and education efforts must be brought
652	652	15 to communities in a diversity of ways, must be created
653	653	16 with input from members of the communities, and must be
654	654	17 provided through, among other things:
655	655	18 (i) information on customers' bills in the main
656	656	19 languages spoken in the communities;
657	657	20 (ii) a quarterly posting in local newspapers that
658	658	21 cover the service area;
659	659	22 (iii) a dedicated section on the investor-owned
660	660	23 utility's website; and
661	661	24 (iv) in-person and virtual educational sessions
662	662	25 that take place in the income-qualified and Justice40
663	663	26 community, provide food and child care for
664	664
665	665
666	666
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674	674	1 participating customers, and are codesigned with
675	675	2 interested community-based organization
676	676	3 representatives.
677	677	4 (6) Implementation of energy efficiency measures and
678	678	5 programs targeted at income-qualified households shall be
679	679	6 contracted, when practicable, to independent third parties
680	680	7 that have demonstrated the capability of serving those
681	681	8 households, with a preference for not-for-profit entities
682	682	9 and government agencies that have existing relationships
683	683	10 with, experience serving, or working directly within and
684	684	11 alongside income-qualified communities in the State. Each
685	685	12 gas utility shall develop and implement reporting
686	686	13 procedures that address and assist in determining the
687	687	14 amount of energy savings that can be applied to the
688	688	15 income-qualified procurement and expenditure requirements
689	689	16 set forth in this paragraph.
690	690	17 (7) A minimum of 10% of the utility's entire portfolio
691	691	18 funding level for a given year shall be used to procure
692	692	19 cost-effective energy efficiency measures from units of
693	693	20 local government, municipal corporations, school
694	694	21 districts, public housing, community college districts,
695	695	22 and nonprofit-owned buildings as long as a minimum
696	696	23 percentage of available funds shall be used to procure
697	697	24 energy efficiency from public housing, which percentage
698	698	25 shall be, at a minimum, equal to public housing's share of
699	699	26 public building energy consumption. Spending on public
700	700
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710	710	1 housing may count toward minimum spending requirements on
711	711	2 efficiency improvements for income-qualified households.
712	712	3 (e) Notwithstanding any other provision of law, a utility
713	713	4 providing approved energy efficiency measures in the State may
714	714	5 recover all reasonable and prudently incurred costs of those
715	715	6 measures from its retail customers. However, nothing in this
716	716	7 subsection permits the double recovery of such costs from
717	717	8 customers.
718	718	9 (f) Beginning in 2024, each gas utility shall file an
719	719	10 energy efficiency plan with the Commission to meet the energy
720	720	11 efficiency standards in subsection (d) for the next applicable
721	721	12 multiyear period beginning January 1 of the year following the
722	722	13 filing, according to the schedule set forth in paragraphs (1)
723	723	14 through (4). If a utility does not file such a plan on or
724	724	15 before the applicable filing deadline for the plan, the
725	725	16 utility shall be liable for a civil penalty of $100,000 per day
726	726	17 until the plan is filed.
727	727	18 (1) No later than 120 days after the effective date of
728	728	19 this amendatory Act of the 103rd General Assembly, each
729	729	20 gas utility shall file an energy efficiency plan to
730	730	21 supersede its previously filed energy efficiency plan for
731	731	22 calendar year 2025 that is designed to achieve through
732	732	23 implementation of energy efficiency measures the
733	733	24 incremental annual savings goals, minimum average savings
734	734	25 life, and other requirements specified in paragraphs (1)
735	735	26 through (7) of subsection (d). An energy efficiency plan
736	736
737	737
738	738
739	739
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746	746	1 submitted by a gas utility under this paragraph supersedes
747	747	2 any energy efficiency plan previously filed by the gas
748	748	3 utility for calendar year 2025.
749	749	4 (2) No later than March 1, 2025, each gas utility
750	750	5 shall file a 4-year energy efficiency plan that takes
751	751	6 effect on January 1, 2026 and is designed to achieve,
752	752	7 through implementation of emergency efficiency measures,
753	753	8 the incremental annual savings goals, minimum average
754	754	9 savings life, and other requirements specified in
755	755	10 paragraphs (1) through (7) of subsection (d). However, the
756	756	11 incremental annual savings goals may be reduced if the
757	757	12 plan's analysis and forecasts of the utility's ability to
758	758	13 acquire energy savings demonstrate by clear and convincing
759	759	14 evidence and through independent analysis that achievement
760	760	15 of such goals is not cost-effective. In no event may
761	761	16 incremental annual savings goals for any year be reduced
762	762	17 to levels below (i) those actually achieved in calendar
763	763	18 year 2024, (ii) those forecast to be achieved in calendar
764	764	19 year 2025, or (iii) 0.75% of sales. The Commission shall
765	765	20 review any proposed goal reduction as part of its review
766	766	21 and approval of the utility's proposed plan.
767	767	22 (3) Beginning in 2029 and every 4 years thereafter,
768	768	23 each gas utility shall file by no later than March 1 of the
769	769	24 applicable year, a 4-year energy efficiency plan that
770	770	25 takes effect on the following January 1 and is designed to
771	771	26 achieve, through implementation of energy efficiency
772	772
773	773
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782	782	1 measures, the incremental annual savings goals, minimum
783	783	2 average savings life, and other requirements specified in
784	784	3 paragraphs (1) through (7) of subsection (d). However, the
785	785	4 incremental annual savings goals may be reduced if the
786	786	5 plan's analysis and forecasts of the utility's ability to
787	787	6 acquire energy savings demonstrate by clear and convincing
788	788	7 evidence and through independent analysis that achievement
789	789	8 of such goals is not cost-effective. In no event may
790	790	9 incremental annual savings goals for any year be reduced
791	791	10 to levels below (i) those actually achieved in the
792	792	11 calendar year before the plan filing, (ii) those forecast
793	793	12 to be achieved in the calendar year in which the plan
794	794	13 filing is made, or (iii) 0.75% of sales. The Commission
795	795	14 shall review any proposed goal reduction as part of its
796	796	15 review and approval of the utility's proposed plan.
797	797	16 (4) Each utility's plan shall set forth the utility's
798	798	17 proposals to meet the energy efficiency standards
799	799	18 identified in subsection (d). The Commission shall seek
800	800	19 public comment on each plan that takes effect on January
801	801	20 1, 2024 and before January 1, 2026 and shall issue an order
802	802	21 approving or disapproving the plan no later than November
803	803	22 30, 2023, or 225 days after the effective date of this
804	804	23 amendatory Act of the 103rd General Assembly, whichever is
805	805	24 later. The Commission shall seek public comment on each
806	806	25 plan that takes effect on January 1, 2026 and shall issue
807	807	26 an order approving or disapproving the plan within 6
808	808
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810	810
811	811
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815	815
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818	818	1 months after its submission. If the Commission disapproves
819	819	2 a plan, the Commission shall, within 30 days, describe in
820	820	3 detail the reasons for the disapproval and describe a path
821	821	4 by which the utility may file a revised draft of the plan
822	822	5 to address the Commission's concerns satisfactorily. If
823	823	6 the utility does not refile with the Commission within 60
824	824	7 days, the utility shall be subject to civil penalties at a
825	825	8 rate of $100,000 per day until the plan is refiled. This
826	826	9 process shall continue, and penalties shall accrue, until
827	827	10 the utility has successfully filed a portfolio of energy
828	828	11 efficiency measures. Penalties shall be deposited into the
829	829	12 Energy Efficiency Trust Fund.
830	830	13 (g) In submitting proposed plans and funding levels under
831	831	14 subsection (f) to meet the savings goals identified in
832	832	15 subsection (d), the utility shall:
833	833	16 (1) demonstrate that its proposed energy efficiency
834	834	17 measures will achieve the requirements that are identified
835	835	18 in subsection (d);
836	836	19 (2) demonstrate consideration of program options for
837	837	20 supporting efforts to improve compliance with new building
838	838	21 codes, appliance standards, and municipal regulations as
839	839	22 potentially cost-effective means of acquiring energy
840	840	23 savings to count toward energy savings goals;
841	841	24 (3) demonstrate that its overall portfolio of measures
842	842	25 and programs, not including income-qualified programs
843	843	26 described in subsection (d), is cost-effective using the
844	844
845	845
846	846
847	847
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854	854	1 total resource cost test and represents a diverse cross
855	855	2 section of opportunities for customers of all rate classes
856	856	3 to participate in programs. Individual measures need not
857	857	4 be cost-effective;
858	858	5 (4) demonstrate that the utility's plan integrates the
859	859	6 delivery of energy efficiency programs with electric
860	860	7 efficiency programs, programs promoting demand response,
861	861	8 and other efforts to address bill payment issues,
862	862	9 including, but not limited to, the Low Income Home Energy
863	863	10 Assistance Program and the Percentage of Income Payment
864	864	11 Plans;
865	865	12 (5) include a proposed or revised cost-recovery
866	866	13 mechanism to fund the proposed energy efficiency measures
867	867	14 and ensure the recovery of the prudently and reasonably
868	868	15 incurred costs of Commission-approved programs;
869	869	16 (6) provide, using not more than 3% of portfolio
870	870	17 resources in any given year, an annual independent
871	871	18 evaluation of the performance and cost-effectiveness of
872	872	19 the utility's portfolio of measures and programs;
873	873	20 (7) demonstrate how it will ensure that program
874	874	21 implementation contractors and energy efficiency
875	875	22 installation vendors will promote workforce equity and
876	876	23 quality jobs. Utilities shall collect, and make publicly
877	877	24 available at least quarterly, data necessary to
878	878	25 demonstrate how efforts are advancing workforce equity.
879	879	26 Utilities shall work with relevant vendors providing
880	880
881	881
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890	890	1 education, training, and other resources needed to ensure
891	891	2 compliance and, where necessary, adjusting or terminating
892	892	3 work with vendors that cannot assist with compliance; and
893	893	4 (8) include any plans for research, development, or
894	894	5 pilot deployment of new measures or program approaches.
895	895	6 For utilities with unmodified savings goals, no more than
896	896	7 4% of energy efficiency portfolio spending may be
897	897	8 allocated for such purposes. For utilities with modified
898	898	9 savings goals, no more than 2% of energy efficiency
899	899	10 portfolio spending may be allocated for such purposes.
900	900	11 Utilities shall work with interested stakeholders to
901	901	12 formulate a plan for how any proposed funds should be
902	902	13 spent, incorporate statewide approaches for these
903	903	14 allocations whenever such approaches would be more
904	904	15 effective or cost-efficient, and demonstrate such
905	905	16 collaboration in the utilities' plans.
906	906	17 (h) Each gas utility shall be eligible to earn a
907	907	18 shareholder incentive for effective implementation of its
908	908	19 efficiency programs. The incentive shall be tied to each
909	909	20 utility's annual energy efficiency spending and its savings.
910	910	21 There shall be no incentive if the independent evaluator
911	911	22 determines the utility either (i) failed to achieve the
912	912	23 minimum average savings life specified in paragraph (2) of
913	913	24 subsection (d), (ii) did not fully meet all of the
914	914	25 requirements specified in paragraphs (3) through (7) of
915	915	26 subsection (d), or (iii) failed to achieve incremental annual
916	916
917	917
918	918
919	919
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922	922
923	923
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926	926	1 savings equal to at least 90% of the incremental savings goal
927	927	2 specified in paragraph (1) of subsection (d). If a utility
928	928	3 meets all of the requirements specified in paragraphs (2)
929	929	4 through (7) of subsection (d), it can earn an incentive equal
930	930	5 0.5% of total annual efficiency spending in the year being
931	931	6 evaluated for every one percentage point above 90% of its
932	932	7 incremental annual savings goal that it achieves for that
933	933	8 year, with a maximum incentive of 15% for achieving 120% of its
934	934	9 incremental annual savings goal.
935	935	10 (i) The utility shall submit energy savings data to the
936	936	11 independent evaluator no later than 30 days after the close of
937	937	12 the plan year. The independent evaluator shall determine the
938	938	13 incremental annual savings and average savings life, as well
939	939	14 as an estimate of the job impacts and other macroeconomic
940	940	15 impacts of the efficiency programs for that year, achieved no
941	941	16 later than 120 days after the close of the plan year. The
942	942	17 utility shall submit an informational filing to the Commission
943	943	18 no later than 160 days after the close of the plan year that
944	944	19 attaches the independent evaluator's final report identifying
945	945	20 the incremental annual savings for the year, identifying
946	946	21 average savings life for the year, documenting compliance with
947	947	22 other requirements in subsection (d), and, as applicable, the
948	948	23 magnitude of any shareholder incentive which the utility has
949	949	24 earned.
950	950	25 (j) Gas utilities shall report annually to the Commission
951	951	26 and General Assembly on how hiring, contracting, job training,
952	952
953	953
954	954
955	955
956	956
957	957	SB3935 - 26 - LRB103 40383 LNS 72670 b
958	958
959	959
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961	961	SB3935 - 27 - LRB103 40383 LNS 72670 b
962	962	1 and other practices related to its energy efficiency programs
963	963	2 enhance the diversity of vendors working on such programs.
964	964	3 These reports must include data on vendor and employee
965	965	4 diversity.
966	966	5 (k) The independent evaluator shall follow the guidelines
967	967	6 and use the savings set forth in Commission-approved energy
968	968	7 efficiency policy manuals and technical reference manuals, as
969	969	8 each may be updated from time to time. Until measure life
970	970	9 values for energy efficiency measures implemented for
971	971	10 income-qualified households are separately incorporated into
972	972	11 such Commission-approved manuals, the income-qualified
973	973	12 measures shall have the same measure life values that are
974	974	13 established for the same measures implemented in households
975	975	14 that are not income-qualified households.
976	976	15 (220 ILCS 5/9-228.5 new)
977	977	16 Sec. 9-228.5. Consideration of gas main and gas service
978	978	17 extension costs. Gas main and gas service extension policies
979	979	18 shall be based on the principle that the full incremental cost
980	980	19 associated with new development and growth shall be borne by
981	981	20 the customers that cause those incremental costs. Gas main and
982	982	21 gas service extension policies, procedures, and conditions
983	983	22 shall align with the greenhouse gas emission reduction goals
984	984	23 established in Article XXIV.
985	985	24 (220 ILCS 5/9-229)
986	986
987	987
988	988
989	989
990	990
991	991	SB3935 - 27 - LRB103 40383 LNS 72670 b
992	992
993	993
994	994	SB3935- 28 -LRB103 40383 LNS 72670 b SB3935 - 28 - LRB103 40383 LNS 72670 b
995	995	SB3935 - 28 - LRB103 40383 LNS 72670 b
996	996	1 Sec. 9-229. Consideration of attorney and expert
997	997	2 compensation as an expense and intervenor compensation fund.
998	998	3 (a) The Commission shall specifically assess the justness
999	999	4 and reasonableness of any amount expended by a public utility
1000	1000	5 to compensate attorneys or technical experts to prepare and
1001	1001	6 litigate a general rate case filing. This issue shall be
1002	1002	7 expressly addressed in the Commission's final order.
1003	1003	8 (b) The State of Illinois shall create a Consumer
1004	1004	9 Intervenor Compensation Fund subject to the following:
1005	1005	10 (1) Provision of compensation for Consumer Interest
1006	1006	11 Representatives that intervene in Illinois Commerce
1007	1007	12 Commission proceedings will increase public engagement,
1008	1008	13 encourage additional transparency, expand the information
1009	1009	14 available to the Commission, and improve decision-making.
1010	1010	15 (2) As used in this Section, "consumer Consumer
1011	1011	16 interest representative" means:
1012	1012	17 (A) a residential utility customer or group of
1013	1013	18 residential utility customers represented by a
1014	1014	19 not-for-profit group or organization registered with
1015	1015	20 the Illinois Attorney General under the Solicitation
1016	1016	21 for of Charity Act;
1017	1017	22 (B) representatives of not-for-profit groups or
1018	1018	23 organizations whose membership is limited to
1019	1019	24 residential utility customers; or
1020	1020	25 (C) representatives of not-for-profit groups or
1021	1021	26 organizations whose membership includes Illinois
1022	1022
1023	1023
1024	1024
1025	1025
1026	1026
1027	1027	SB3935 - 28 - LRB103 40383 LNS 72670 b
1028	1028
1029	1029
1030	1030	SB3935- 29 -LRB103 40383 LNS 72670 b SB3935 - 29 - LRB103 40383 LNS 72670 b
1031	1031	SB3935 - 29 - LRB103 40383 LNS 72670 b
1032	1032	1 residents and that address the community, economic,
1033	1033	2 environmental, or social welfare of Illinois
1034	1034	3 residents, except government agencies or intervenors
1035	1035	4 specifically authorized by Illinois law to participate
1036	1036	5 in Commission proceedings on behalf of Illinois
1037	1037	6 consumers.
1038	1038	7 (3) A consumer interest representative is eligible to
1039	1039	8 receive compensation from the consumer intervenor
1040	1040	9 compensation fund if its participation included lay or
1041	1041	10 expert testimony or legal briefing and argument concerning
1042	1042	11 the expenses, investments, rate design, rate impact, or
1043	1043	12 other matters affecting the pricing, rates, costs or other
1044	1044	13 charges associated with utility service, the Commission
1045	1045	14 adopts a material recommendation related to a significant
1046	1046	15 issue in the docket, and participation caused a
1047	1047	16 significant financial cost hardship to the participant;
1048	1048	17 however, no consumer interest representative shall be
1049	1049	18 eligible to receive an award pursuant to this Section if
1050	1050	19 the consumer interest representative receives any
1051	1051	20 compensation, funding, or donations, directly or
1052	1052	21 indirectly, from parties that have a financial interest in
1053	1053	22 the outcome of the proceeding.
1054	1054	23 (4) Within 30 days after September 15, 2021 (the
1055	1055	24 effective date of Public Act 102-662) this amendatory Act
1056	1056	25 of the 102nd General Assembly, each utility that files a
1057	1057	26 request for an increase in rates under Article IX or
1058	1058
1059	1059
1060	1060
1061	1061
1062	1062
1063	1063	SB3935 - 29 - LRB103 40383 LNS 72670 b
1064	1064
1065	1065
1066	1066	SB3935- 30 -LRB103 40383 LNS 72670 b SB3935 - 30 - LRB103 40383 LNS 72670 b
1067	1067	SB3935 - 30 - LRB103 40383 LNS 72670 b
1068	1068	1 Article XVI shall deposit an amount equal to one half of
1069	1069	2 the rate case attorney and expert expense allowed by the
1070	1070	3 Commission, but not to exceed $500,000, into the fund
1071	1071	4 within 35 days of the date of the Commission's Final final
1072	1072	5 Order in the rate case or 20 days after the denial of
1073	1073	6 rehearing under Section 10-113 of this Act, whichever is
1074	1074	7 later. The Consumer Intervenor Compensation Fund shall be
1075	1075	8 used to provide payment to consumer interest
1076	1076	9 representatives as described in this Section.
1077	1077	10 (5) An electric public utility with 3,000,000 or more
1078	1078	11 retail customers shall contribute $450,000 to the Consumer
1079	1079	12 Intervenor Compensation Fund within 60 days after
1080	1080	13 September 15, 2021 (the effective date of Public Act
1081	1081	14 102-662) this amendatory Act of the 102nd General
1082	1082	15 Assembly. A combined electric and gas public utility
1083	1083	16 serving fewer than 3,000,000 but more than 500,000 retail
1084	1084	17 customers shall contribute $225,000 to the Consumer
1085	1085	18 Intervenor Compensation Fund within 60 days after
1086	1086	19 September 15, 2021 (the effective date of Public Act
1087	1087	20 102-662) this amendatory Act of the 102nd General
1088	1088	21 Assembly. A gas public utility with 1,500,000 or more
1089	1089	22 retail customers that is not a combined electric and gas
1090	1090	23 public utility shall contribute $225,000 to the Consumer
1091	1091	24 Intervenor Compensation Fund within 60 days after
1092	1092	25 September 15, 2021 (the effective date of Public Act
1093	1093	26 102-662) this amendatory Act of the 102nd General
1094	1094
1095	1095
1096	1096
1097	1097
1098	1098
1099	1099	SB3935 - 30 - LRB103 40383 LNS 72670 b
1100	1100
1101	1101
1102	1102	SB3935- 31 -LRB103 40383 LNS 72670 b SB3935 - 31 - LRB103 40383 LNS 72670 b
1103	1103	SB3935 - 31 - LRB103 40383 LNS 72670 b
1104	1104	1 Assembly. A gas public utility with fewer than 1,500,000
1105	1105	2 retail customers but more than 300,000 retail customers
1106	1106	3 that is not a combined electric and gas public utility
1107	1107	4 shall contribute $80,000 to the Consumer Intervenor
1108	1108	5 Compensation Fund within 60 days after September 15, 2021
1109	1109	6 (the effective date of Public Act 102-662) this amendatory
1110	1110	7 Act of the 102nd General Assembly. A gas public utility
1111	1111	8 with fewer than 300,000 retail customers that is not a
1112	1112	9 combined electric and gas public utility shall contribute
1113	1113	10 $20,000 to the Consumer Intervenor Compensation Fund
1114	1114	11 within 60 days after September 15, 2021 (the effective
1115	1115	12 date of Public Act 102-662) this amendatory Act of the
1116	1116	13 102nd General Assembly. A combined electric and gas public
1117	1117	14 utility serving fewer than 500,000 retail customers shall
1118	1118	15 contribute $20,000 to the Consumer Intervenor Compensation
1119	1119	16 Fund within 60 days after September 15, 2021 (the
1120	1120	17 effective date of Public Act 102-662) this amendatory Act
1121	1121	18 of the 102nd General Assembly. A water or sewer public
1122	1122	19 utility serving more than 100,000 retail customers shall
1123	1123	20 contribute $80,000, and a water or sewer public utility
1124	1124	21 serving fewer than 100,000 but more than 10,000 retail
1125	1125	22 customers shall contribute $20,000.
1126	1126	23 (6)(A) Prior to the entry of a Final Order in a
1127	1127	24 docketed case, the Commission Administrator shall provide
1128	1128	25 a payment to a consumer interest representative that
1129	1129	26 demonstrates through a verified application for funding
1130	1130
1131	1131
1132	1132
1133	1133
1134	1134
1135	1135	SB3935 - 31 - LRB103 40383 LNS 72670 b
1136	1136
1137	1137
1138	1138	SB3935- 32 -LRB103 40383 LNS 72670 b SB3935 - 32 - LRB103 40383 LNS 72670 b
1139	1139	SB3935 - 32 - LRB103 40383 LNS 72670 b
1140	1140	1 that the consumer interest representative's participation
1141	1141	2 or intervention without an award of fees or costs imposes
1142	1142	3 a significant financial hardship based on a schedule to be
1143	1143	4 developed by the Commission. The Administrator may require
1144	1144	5 verification of costs incurred, including statements of
1145	1145	6 hours spent, as a condition to paying the consumer
1146	1146	7 interest representative prior to the entry of a Final
1147	1147	8 Order in a docketed case.
1148	1148	9 (B) If the Commission adopts a material recommendation
1149	1149	10 related to a significant issue in the docket and
1150	1150	11 participation caused a significant financial cost hardship
1151	1151	12 to the participant, then the consumer interest
1152	1152	13 representative shall be allowed payment for some or all of
1153	1153	14 the consumer interest representative's reasonable
1154	1154	15 attorney's or advocate's fees, reasonable expert witness
1155	1155	16 fees, and other reasonable costs of preparation for and
1156	1156	17 participation in a hearing or proceeding. Expenses related
1157	1157	18 to travel or meals shall not be compensable.
1158	1158	19 (C) The consumer interest representative shall submit
1159	1159	20 an itemized request for compensation to the Consumer
1160	1160	21 Intervenor Compensation Fund, including the advocate's or
1161	1161	22 attorney's reasonable fee rate, the number of hours
1162	1162	23 expended, reasonable expert and expert witness fees, and
1163	1163	24 other reasonable costs for the preparation for and
1164	1164	25 participation in the hearing and briefing within 30 days
1165	1165	26 of the Commission's final order after denial or decision
1166	1166
1167	1167
1168	1168
1169	1169
1170	1170
1171	1171	SB3935 - 32 - LRB103 40383 LNS 72670 b
1172	1172
1173	1173
1174	1174	SB3935- 33 -LRB103 40383 LNS 72670 b SB3935 - 33 - LRB103 40383 LNS 72670 b
1175	1175	SB3935 - 33 - LRB103 40383 LNS 72670 b
1176	1176	1 on rehearing, if any.
1177	1177	2 (7) Administration of the Fund.
1178	1178	3 (A) The Consumer Intervenor Compensation Fund is
1179	1179	4 created as a special fund in the State treasury. All
1180	1180	5 disbursements from the Consumer Intervenor Compensation
1181	1181	6 Fund shall be made only upon warrants of the Comptroller
1182	1182	7 drawn upon the Treasurer as custodian of the Fund upon
1183	1183	8 vouchers signed by the Executive Director of the
1184	1184	9 Commission or by the person or persons designated by the
1185	1185	10 Director for that purpose. The Comptroller is authorized
1186	1186	11 to draw the warrant upon vouchers so signed. The Treasurer
1187	1187	12 shall accept all warrants so signed and shall be released
1188	1188	13 from liability for all payments made on those warrants.
1189	1189	14 The Consumer Intervenor Compensation Fund shall be
1190	1190	15 administered by an Administrator that is a person or
1191	1191	16 entity that is independent of the Commission. The
1192	1192	17 administrator will be responsible for the prudent
1193	1193	18 management of the Consumer Intervenor Compensation Fund
1194	1194	19 and for recommendations for the award of consumer
1195	1195	20 intervenor compensation from the Consumer Intervenor
1196	1196	21 Compensation Fund. The Commission shall issue a request
1197	1197	22 for qualifications for a third-party program administrator
1198	1198	23 to administer the Consumer Intervenor Compensation Fund.
1199	1199	24 The third-party administrator shall be chosen through a
1200	1200	25 competitive bid process based on selection criteria and
1201	1201	26 requirements developed by the Commission. The Illinois
1202	1202
1203	1203
1204	1204
1205	1205
1206	1206
1207	1207	SB3935 - 33 - LRB103 40383 LNS 72670 b
1208	1208
1209	1209
1210	1210	SB3935- 34 -LRB103 40383 LNS 72670 b SB3935 - 34 - LRB103 40383 LNS 72670 b
1211	1211	SB3935 - 34 - LRB103 40383 LNS 72670 b
1212	1212	1 Procurement Code does not apply to the hiring or payment
1213	1213	2 of the Administrator. All Administrator costs may be paid
1214	1214	3 for using monies from the Consumer Intervenor Compensation
1215	1215	4 Fund, but the Program Administrator shall strive to
1216	1216	5 minimize costs in the implementation of the program.
1217	1217	6 (B) The computation of compensation awarded from the
1218	1218	7 fund shall take into consideration the market rates paid
1219	1219	8 to persons of comparable training and experience who offer
1220	1220	9 similar services, but may not exceed the comparable market
1221	1221	10 rate for services paid by the public utility as part of its
1222	1222	11 rate case expense.
1223	1223	12 (C)(1) Recommendations on the award of compensation by
1224	1224	13 the administrator shall include consideration of whether
1225	1225	14 the participation raised Commission adopted a material
1226	1226	15 recommendation related to a significant issue in the
1227	1227	16 docket and whether participation caused a significant
1228	1228	17 financial cost hardship to the participant and the payment
1229	1229	18 of compensation is fair, just, and reasonable.
1230	1230	19 (2) Recommendations on the award of compensation by
1231	1231	20 the administrator shall be submitted to the Commission for
1232	1232	21 approval. Unless the Commission initiates an investigation
1233	1233	22 within 45 days after the notice to the Commission, the
1234	1234	23 award of compensation shall be allowed 45 days after
1235	1235	24 notice to the Commission. Such notice shall be given by
1236	1236	25 filing with the Commission on the Commission's e-docket
1237	1237	26 system, and keeping open for public inspection the award
1238	1238
1239	1239
1240	1240
1241	1241
1242	1242
1243	1243	SB3935 - 34 - LRB103 40383 LNS 72670 b
1244	1244
1245	1245
1246	1246	SB3935- 35 -LRB103 40383 LNS 72670 b SB3935 - 35 - LRB103 40383 LNS 72670 b
1247	1247	SB3935 - 35 - LRB103 40383 LNS 72670 b
1248	1248	1 for compensation proposed by the Administrator. The
1249	1249	2 Commission shall have power, and it is hereby given
1250	1250	3 authority, either upon complaint or upon its own
1251	1251	4 initiative without complaint, at once, and if it so
1252	1252	5 orders, without answer or other formal pleadings, but upon
1253	1253	6 reasonable notice, to enter upon a hearing concerning the
1254	1254	7 propriety of the award.
1255	1255	8 (c) The Commission may adopt rules to implement this
1256	1256	9 Section.
1257	1257	10 (Source: P.A. 102-662, eff. 9-15-21; revised 1-20-24.)
1258	1258	11 (220 ILCS 5/9-235 new)
1259	1259	12 Sec. 9-235. Tariffed gas main and gas service extension
1260	1260	13 provisions. No later than 60 days after the effective date of
1261	1261	14 this amendatory Act of the 103rd General Assembly, the
1262	1262	15 Commission shall initiate a docketed rulemaking reviewing each
1263	1263	16 gas public utility tariff that provides for gas main and gas
1264	1264	17 service extensions without additional charge to new customers
1265	1265	18 in excess of the default extensions without charge as
1266	1266	19 specified in 83 Ill. Adm. Code 501. The focus of the rulemaking
1267	1267	20 shall be to modify each gas utility's gas main and gas service
1268	1268	21 extension tariff to align with the provisions set forth in
1269	1269	22 Section 9-228.5.
1270	1270	23 (220 ILCS 5/9-241) (from Ch. 111 2/3, par. 9-241)
1271	1271	24 Sec. 9-241. No public utility shall, as to rates or other
1272	1272
1273	1273
1274	1274
1275	1275
1276	1276
1277	1277	SB3935 - 35 - LRB103 40383 LNS 72670 b
1278	1278
1279	1279
1280	1280	SB3935- 36 -LRB103 40383 LNS 72670 b SB3935 - 36 - LRB103 40383 LNS 72670 b
1281	1281	SB3935 - 36 - LRB103 40383 LNS 72670 b
1282	1282	1 charges, services, facilities, or in other respect, make or
1283	1283	2 grant any preference or advantage to any corporation or person
1284	1284	3 or subject any corporation or person to any prejudice or
1285	1285	4 disadvantage. No public utility shall establish or maintain
1286	1286	5 any unreasonable difference as to rates or other charges,
1287	1287	6 services, facilities, or in any other respect, either as
1288	1288	7 between localities or as between classes of service.
1289	1289	8 However, nothing in this Section shall be construed as
1290	1290	9 limiting the authority of the Commission to permit the
1291	1291	10 establishment of economic development rates as incentives to
1292	1292	11 economic development either in enterprise zones as designated
1293	1293	12 by the State of Illinois or in other areas of a utility's
1294	1294	13 service area. Such rates should be available to existing
1295	1295	14 businesses which demonstrate an increase to existing load as
1296	1296	15 well as new businesses which create new load for a utility so
1297	1297	16 as to create a more balanced utilization of generating
1298	1298	17 capacity. The Commission shall ensure that such rates are
1299	1299	18 established at a level which provides a net benefit to
1300	1300	19 customers within a public utility's service area.
1301	1301	20 On or before January 1, 2025 2023, the Commission shall
1302	1302	21 conduct a comprehensive study to assess whether low-income
1303	1303	22 discount rates for electric and natural gas residential
1304	1304	23 customers are appropriate and the potential design and
1305	1305	24 implementation of any such rates. The Commission shall include
1306	1306	25 its findings, together with the appropriate recommendations,
1307	1307	26 in a report to be provided to the General Assembly. Upon
1308	1308
1309	1309
1310	1310
1311	1311
1312	1312
1313	1313	SB3935 - 36 - LRB103 40383 LNS 72670 b
1314	1314
1315	1315
1316	1316	SB3935- 37 -LRB103 40383 LNS 72670 b SB3935 - 37 - LRB103 40383 LNS 72670 b
1317	1317	SB3935 - 37 - LRB103 40383 LNS 72670 b
1318	1318	1 completion of the study, the Commission shall have the
1319	1319	2 authority to permit or require electric and natural gas
1320	1320	3 utilities to file a tariff establishing low-income discount
1321	1321	4 rates.
1322	1322	5 Such study shall assess, at a minimum, the following:
1323	1323	6 (1) customer eligibility requirements, including
1324	1324	7 income-based eligibility and eligibility based on
1325	1325	8 participation in or eligibility for certain public
1326	1326	9 assistance programs;
1327	1327	10 (2) appropriate rate structures, including
1328	1328	11 consideration of tiered discounts for different income
1329	1329	12 levels;
1330	1330	13 (3) appropriate recovery mechanisms, including the
1331	1331	14 consideration of volumetric charges and customer charges;
1332	1332	15 (4) appropriate verification mechanisms;
1333	1333	16 (5) measures to ensure customer confidentiality and
1334	1334	17 data safeguards;
1335	1335	18 (6) outreach and consumer education procedures; and
1336	1336	19 (7) the impact that a low-income discount rate would
1337	1337	20 have on the affordability of delivery service to
1338	1338	21 low-income customers and customers overall.
1339	1339	22 On or before January 1, 2026, the Commission shall begin a
1340	1340	23 docketed rulemaking process to implement low-income discount
1341	1341	24 rates for electric and natural gas residential customers,
1342	1342	25 incorporating the recommendations of the report required by
1343	1343	26 this Section, released by the Commission in December 2022 and
1344	1344
1345	1345
1346	1346
1347	1347
1348	1348
1349	1349	SB3935 - 37 - LRB103 40383 LNS 72670 b
1350	1350
1351	1351
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1353	1353	SB3935 - 38 - LRB103 40383 LNS 72670 b
1354	1354	1 titled the "Illinois Commerce Commission Low-Income Discount
1355	1355	2 Rate Study Report to the Illinois General Assembly".
1356	1356	3 The Commission shall adopt rules requiring utility
1357	1357	4 companies to produce information, in the form of a mailing,
1358	1358	5 and other approved methods of distribution, to its consumers,
1359	1359	6 to inform the consumers of available rebates, discounts,
1360	1360	7 credits, and other cost-saving mechanisms that can help them
1361	1361	8 lower their monthly utility bills, and send out such
1362	1362	9 information semi-annually, unless otherwise provided by this
1363	1363	10 Article.
1364	1364	11 Prior to October 1, 1989, no public utility providing
1365	1365	12 electrical or gas service shall consider the use of solar or
1366	1366	13 other nonconventional renewable sources of energy by a
1367	1367	14 customer as a basis for establishing higher rates or charges
1368	1368	15 for any service or commodity sold to such customer; nor shall a
1369	1369	16 public utility subject any customer utilizing such energy
1370	1370	17 source or sources to any other prejudice or disadvantage on
1371	1371	18 account of such use. No public utility shall without the
1372	1372	19 consent of the Commission, charge or receive any greater
1373	1373	20 compensation in the aggregate for a lesser commodity, product,
1374	1374	21 or service than for a greater commodity, product, or service
1375	1375	22 of like character.
1376	1376	23 The Commission, in order to expedite the determination of
1377	1377	24 rate questions, or to avoid unnecessary and unreasonable
1378	1378	25 expense, or to avoid unjust or unreasonable discrimination
1379	1379	26 between classes of customers, or, whenever in the judgment of
1380	1380
1381	1381
1382	1382
1383	1383
1384	1384
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1386	1386
1387	1387
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1389	1389	SB3935 - 39 - LRB103 40383 LNS 72670 b
1390	1390	1 the Commission public interest so requires, may, for rate
1391	1391	2 making and accounting purposes, or either of them, consider
1392	1392	3 one or more municipalities either with or without the adjacent
1393	1393	4 or intervening rural territory as a regional unit where the
1394	1394	5 same public utility serves such region under substantially
1395	1395	6 similar conditions, and may within such region prescribe
1396	1396	7 uniform rates for consumers or patrons of the same class.
1397	1397	8 Any public utility, with the consent and approval of the
1398	1398	9 Commission, may as a basis for the determination of the
1399	1399	10 charges made by it classify its service according to the
1400	1400	11 amount used, the time when used, the purpose for which used,
1401	1401	12 and other relevant factors.
1402	1402	13 (Source: P.A. 102-662, eff. 9-15-21.)
1403	1403	14 (220 ILCS 5/9-254 new)
1404	1404	15 Sec. 9-254. Independent gas system assessment.
1405	1405	16 (a) The General Assembly finds that an independent audit
1406	1406	17 of the current state of the gas distribution system, and of the
1407	1407	18 expenditures made since 2012, will need to be made.
1408	1408	19 Specifically, the General Assembly finds:
1409	1409	20 (1) Pursuant to 2013 legislation establishing the
1410	1410	21 qualifying infrastructure plant charge, gas utilities in
1411	1411	22 this State that serve over 700,000 retail customers have
1412	1412	23 spent significant amounts of ratepayer dollars on system
1413	1413	24 investments purporting to refurbish, rebuild, modernize,
1414	1414	25 and expand gas system infrastructure.
1415	1415
1416	1416
1417	1417
1418	1418
1419	1419
1420	1420	SB3935 - 39 - LRB103 40383 LNS 72670 b
1421	1421
1422	1422
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1425	1425	1 (2) The qualifying infrastructure plant charge is set
1426	1426	2 to conclude at its statutory deadline of December 31,
1427	1427	3 2023, and it is in the interest of this State and in the
1428	1428	4 interest of gas utilities' customers to understand the
1429	1429	5 benefits of these investments to the gas system and to
1430	1430	6 customers and to evaluate the current condition of the gas
1431	1431	7 system.
1432	1432	8 (3) It is also necessary for gas utilities, the
1433	1433	9 Commission, and stakeholders to have an independently
1434	1434	10 verified set of data to draw upon for future gas rate cases
1435	1435	11 and any other proposed gas system spending.
1436	1436	12 (4) Meeting the State's climate goals will require an
1437	1437	13 ordered transition away from gas, and toward electric
1438	1438	14 heating and appliances, for all or nearly all buildings,
1439	1439	15 and planning this transition will require a thorough
1440	1440	16 understanding of the current state of the gas system.
1441	1441	17 (5) The Commission has authority to order and
1442	1442	18 implement the requirements of this Section under Section
1443	1443	19 8-102.
1444	1444	20 (b) Terms used in this Section shall have the meanings
1445	1445	21 given to them in Section 19-105.
1446	1446	22 (c) Within 30 days after the effective date of this
1447	1447	23 amendatory Act of the 103rd General Assembly, the Commission
1448	1448	24 shall issue an order initiating an audit of each gas utility
1449	1449	25 serving over 700,000 retail customers in the State, which
1450	1450	26 shall examine the following:
1451	1451
1452	1452
1453	1453
1454	1454
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1457	1457
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1461	1461	1 (1) An assessment of the gas distribution system, as
1462	1462	2 described in paragraph (2) of subsection (a). The
1463	1463	3 Commission shall have the authority to require additional
1464	1464	4 items that it deems necessary.
1465	1465	5 (2) An analysis of the utility's capital projects
1466	1466	6 placed into service in the preceding 10 years, including,
1467	1467	7 but not limited to, an assessment of the value and safety
1468	1468	8 impact of pipe replacement, increased system pressure, and
1469	1469	9 pipe capacity expansion.
1470	1470	10 (3) An assessment of the utility's emissions
1471	1471	11 reductions to date and what preparations the utility has
1472	1472	12 made to meet the terms of the Paris Climate Agreement,
1473	1473	13 with which it is the policy of the State to comply.
1474	1474	14 (4) The creation of a visual, geographic map of the
1475	1475	15 gas system displaying the level of risk of various
1476	1476	16 pipelines and showing the areas where pipelines have
1477	1477	17 already been replaced.
1478	1478	18 (5) The identifying areas of the gas system where the
1479	1479	19 cost to replace pipeline is likely to be high, including,
1480	1480	20 but not limited to, identifying places where
1481	1481	21 decommissioning a portion of the gas system and planning
1482	1482	22 to provide for electric heating and appliance needs in
1483	1483	23 that area may be preferable, considering the costs and
1484	1484	24 benefits for affordability, health, and climate.
1485	1485	25 (d) It is contemplated that the auditor will use materials
1486	1486	26 filed with the Commission by the utilities with respect to the
1487	1487
1488	1488
1489	1489
1490	1490
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1493	1493
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1497	1497	1 auditor's expenditures in the preceding 10 years; however, the
1498	1498	2 auditor may also, with Commission approval, assess other
1499	1499	3 information deemed necessary to make its report. The results
1500	1500	4 of the audit described in this Section shall be reflected in a
1501	1501	5 report delivered to the Commission, describing the information
1502	1502	6 specified in this Section. The report is to be delivered no
1503	1503	7 later than 180 days after the Commission enters its order
1504	1504	8 under subsection (c). It is understood that any public report
1505	1505	9 may not contain items that are confidential or proprietary.
1506	1506	10 (e) The costs of a gas utility's audit described in this
1507	1507	11 Section shall not exceed $500,000 and shall be paid for by the
1508	1508	12 electric utility that is the subject of the audit. Such costs
1509	1509	13 shall be a recoverable expense.
1510	1510	14 (f) The Commission shall have the authority to retain the
1511	1511	15 services of an auditor to assist with the distribution
1512	1512	16 planning process, as well as in docketed proceedings. Such
1513	1513	17 expenses for these activities shall also be borne by the
1514	1514	18 Commission.
1515	1515	19 (220 ILCS 5/9-255 new)
1516	1516	20 Sec. 9-255. Phase-out of gas fixed changes. Beginning
1517	1517	21 January 1, 2035, a public utility providing gas service may
1518	1518	22 not assess fixed charges as part of its rates. Beginning
1519	1519	23 January 1, 2030, a public utility providing gas service must
1520	1520	24 limit, for each customer class, any fixed charges in its rates
1521	1521	25 to no greater than 50% of the average of monthly fixed charges
1522	1522
1523	1523
1524	1524
1525	1525
1526	1526
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1528	1528
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1532	1532	1 for that customer class during the period January 1, 2019 to
1533	1533	2 December 31, 2021.
1534	1534	3 (220 ILCS 5/16-111.10)
1535	1535	4 Sec. 16-111.10. Equitable Energy Upgrade Program.
1536	1536	5 (a) The General Assembly finds and declares that Illinois
1537	1537	6 homes and businesses can contribute to the creation of a clean
1538	1538	7 energy economy, conservation of natural resources, and
1539	1539	8 reliability of the electricity grid through the installation
1540	1540	9 of cost-effective renewable energy generation, energy
1541	1541	10 efficiency and demand response equipment, and energy storage
1542	1542	11 systems. Further, a large portion of Illinois residents and
1543	1543	12 businesses that would benefit from the installation of energy
1544	1544	13 efficiency, storage, and renewable energy generation systems
1545	1545	14 are unable to purchase systems due to capital or credit
1546	1546	15 barriers. This State should pursue options to enable many more
1547	1547	16 Illinoisans to access the health, environmental, and financial
1548	1548	17 benefits of new clean energy technology.
1549	1549	18 (b) As used in this Section:
1550	1550	19 "Commission" means the Illinois Commerce Commission.
1551	1551	20 "Energy project" means renewable energy generation
1552	1552	21 systems, including solar projects, energy efficiency upgrades,
1553	1553	22 decarbonization and electrification measures, energy storage
1554	1554	23 systems, demand response equipment, or any combination
1555	1555	24 thereof.
1556	1556	25 "Fund" means the Clean Energy Jobs and Justice Fund
1557	1557
1558	1558
1559	1559
1560	1560
1561	1561
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1563	1563
1564	1564
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1567	1567	1 established in the Clean Energy Jobs and Justice Fund Act.
1568	1568	2 "Program" means the Equitable Energy Upgrade Program
1569	1569	3 established under subsection (c).
1570	1570	4 "Utility" means electric public utilities providing
1571	1571	5 services to 500,000 or more customers under this Act.
1572	1572	6 (c) The Commission shall open an investigation into and
1573	1573	7 direct all electric and gas public utilities in this State to
1574	1574	8 adopt an Equitable Energy Upgrade Program that permits
1575	1575	9 customers to finance the construction of energy projects
1576	1576	10 through an optional tariff payable directly through their
1577	1577	11 utility bill, modeled after the Pay As You Save system,
1578	1578	12 developed by the Energy Efficiency Institute. The Program
1579	1579	13 model shall enable utilities to offer to make investments in
1580	1580	14 energy projects to customer properties with low-cost capital
1581	1581	15 and use an opt-in tariff to recover the costs. The Program
1582	1582	16 shall be designed to provide customers with immediate
1583	1583	17 financial savings if they choose to participate. The Program
1584	1584	18 shall allow residential electric and gas utility customers
1585	1585	19 that own the property, or renters that have permission of the
1586	1586	20 property owner, for which they subscribe to utility service to
1587	1587	21 agree to the installation of an energy project. The Program
1588	1588	22 shall ensure:
1589	1589	23 (1) eligible projects do not require upfront payments;
1590	1590	24 however, customers may pay down the costs for projects
1591	1591	25 with a payment to the installing contractor in order to
1592	1592	26 qualify projects that would otherwise require upfront
1593	1593
1594	1594
1595	1595
1596	1596
1597	1597
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1599	1599
1600	1600
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1603	1603	1 payments;
1604	1604	2 (2) eligible projects have sufficient estimated
1605	1605	3 savings and estimated life span to produce significant,
1606	1606	4 immediate net savings;
1607	1607	5 (3) participants shall agree the utility can recover
1608	1608	6 its costs for the projects at their location by paying for
1609	1609	7 the project through an optional tariff directly through
1610	1610	8 the participant's utility electricity bill, allowing
1611	1611	9 participants to benefit from installation of energy
1612	1612	10 projects without traditional loans;
1613	1613	11 (4) accessibility by lower-income residents and
1614	1614	12 environmental justice community residents; and
1615	1615	13 (5) the utility must ensure that customers who are
1616	1616	14 interested in participating are notified that if they are
1617	1617	15 income qualified, they may also be eligible for the
1618	1618	16 Percentage of Income Payment Plan program and free energy
1619	1619	17 improvements through other programs and facilitate
1620	1620	18 interested customers' enrollment in those programs; and
1621	1621	19 provide contact information.
1622	1622	20 (6) coordination with existing utility, state, and
1623	1623	21 federal energy efficiency, solar, electrification, and
1624	1624	22 other energy savings funding and implementation programs.
1625	1625	23 (d) The Commission shall establish Program guidelines with
1626	1626	24 the anticipated schedule of Program availability as follows:
1627	1627	25 (1) Year 1: Beginning in the first year of operation,
1628	1628	26 each utility with greater than 100,000 retail customers is
1629	1629
1630	1630
1631	1631
1632	1632
1633	1633
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1635	1635
1636	1636
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1639	1639	1 required to obtain low-cost capital of at least
1640	1640	2 $20,000,000 annually for investments in energy projects.
1641	1641	3 (2) Year 2: Beginning in the second year of operation,
1642	1642	4 each utility with greater than 100,000 retail customers is
1643	1643	5 required to obtain low-cost capital for investments in
1644	1644	6 energy projects of at least $40,000,000 annually.
1645	1645	7 (3) Year 3: Beginning in the third year of operation,
1646	1646	8 each utility with greater than 100,000 retail customers is
1647	1647	9 required to obtain low-cost capital for investments in as
1648	1648	10 many systems as customers demand, subject to available
1649	1649	11 capital provided by the utility, State, or other lenders.
1650	1650	12 (e) In the design of the Program, the Commission shall:
1651	1651	13 (1) Within 90 days after the effective date of this
1652	1652	14 amendatory Act of the 103rd General Assembly, begin a
1653	1653	15 process to update the Program guidelines for
1654	1654	16 implementation of the Program. Any such process shall
1655	1655	17 allow for participation from interested stakeholders.
1656	1656	18 Within 270 days after the effective date of this
1657	1657	19 amendatory Act of the 102nd General Assembly, convene a
1658	1658	20 workshop during which interested participants may discuss
1659	1659	21 issues and submit comments related to the Program.
1660	1660	22 (2) Establish Program guidelines for implementation of
1661	1661	23 the Program in accordance with the Pay As You Save
1662	1662	24 Essential Elements and Minimum Program Requirements that
1663	1663	25 electric and gas utilities must abide by when implementing
1664	1664	26 the Program. Program guidelines established by the
1665	1665
1666	1666
1667	1667
1668	1668
1669	1669
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1671	1671
1672	1672
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1675	1675	1 Commission shall include the following elements:
1676	1676	2 (A) The Commission shall establish conditions
1677	1677	3 under which utilities secure capital to fund the
1678	1678	4 energy projects. The Commission may allow utilities to
1679	1679	5 raise capital independently, work with third-party
1680	1680	6 lenders to secure the capital for participants, or a
1681	1681	7 combination thereof. Any process the Commission
1682	1682	8 approves must use a market mechanism to identify the
1683	1683	9 least costly sources of capital funds so as to pass on
1684	1684	10 maximum savings to participants. The State or the
1685	1685	11 Clean Energy Jobs and Justice Fund may also provide
1686	1686	12 capital for the Program.
1687	1687	13 (B) Customer protection guidelines should be
1688	1688	14 designed consistent with Pay As You Save Essential
1689	1689	15 Elements and Minimum Program Requirements.
1690	1690	16 (C) The Commission shall establish conditions by
1691	1691	17 which utilities may connect Program participants to
1692	1692	18 energy project vendors. In setting conditions for
1693	1693	19 connection, the Commission may prioritize vendors that
1694	1694	20 have a history of good relations with the State,
1695	1695	21 including vendors that have hired participants from
1696	1696	22 State-created job training programs.
1697	1697	23 (D) Guarantee that conservative estimates of
1698	1698	24 financial savings will immediately and significantly
1699	1699	25 exceed estimated Program costs for Program
1700	1700	26 participants.
1701	1701
1702	1702
1703	1703
1704	1704
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1707	1707
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1711	1711	1 (E) Require any customer data sharing between
1712	1712	2 electric and gas utilities and third-party vendors
1713	1713	3 needed to evaluate the energy and demand saving and
1714	1714	4 energy services revenue opportunities of all customers
1715	1715	5 and otherwise facilitate a positive customer
1716	1716	6 experience. Such data sharing may include but shall
1717	1717	7 not be limited to historical and ongoing customer
1718	1718	8 usage data and billing rates. The Commission may allow
1719	1719	9 utilities to recover the costs associated with data
1720	1720	10 sharing from all customers.
1721	1721	11 (F) Notwithstanding the method used to estimate
1722	1722	12 site-specific energy savings or measure direct energy
1723	1723	13 savings for Program participants, the utility will
1724	1724	14 report aggregate savings to the Commission for
1725	1725	15 regulatory filings in the same or a similar manner as
1726	1726	16 other energy efficiency or clean energy programs.
1727	1727	17 (f) Within 90 120 days after the Commission releases the
1728	1728	18 Program conditions established under this Section, each
1729	1729	19 utility subject to the requirements of this Section shall
1730	1730	20 submit an informational filing to the Commission that
1731	1731	21 describes its plan for implementing the provisions of this
1732	1732	22 Section. If the Commission finds that the submission does not
1733	1733	23 properly comply with the statutory or regulatory requirements
1734	1734	24 of the Program, the Commission may require that the utility
1735	1735	25 make modifications to its filing.
1736	1736	26 (g) An independent process evaluation shall be conducted
1737	1737
1738	1738
1739	1739
1740	1740
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1743	1743
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1747	1747	1 after one year of the Program's operation. An independent
1748	1748	2 impact evaluation shall be conducted after 3 years of
1749	1749	3 operation, excluding one-time startup costs and results from
1750	1750	4 the first 12 months of the Program. The Commission shall
1751	1751	5 convene an advisory council of stakeholders, including
1752	1752	6 representation of low-income and environmental justice
1753	1753	7 community members to make recommendations in response to the
1754	1754	8 findings of the independent evaluation.
1755	1755	9 (h) The Program shall be designed using the Pay As You Save
1756	1756	10 system guidelines to be cost-effective for customers. Only
1757	1757	11 projects that are deemed to be cost-effective and can be
1758	1758	12 reasonably expected to ensure customer savings are eligible
1759	1759	13 for funding through the Program, unless, as specified in
1760	1760	14 paragraph (1) of subsection (c), customers able to make
1761	1761	15 upfront copayments to installers buy down the cost of projects
1762	1762	16 so it can be deemed cost-effective.
1763	1763	17 (i) Eligible customers must be:
1764	1764	18 (1) property renters with permission of the property
1765	1765	19 owner; or
1766	1766	20 (2) property owners.
1767	1767	21 (j) The calculation of project cost-effectiveness shall be
1768	1768	22 based upon the Pay As You Save system requirements.
1769	1769	23 (1) The calculation of cost-effectiveness must be
1770	1770	24 conducted by an objective process approved by the
1771	1771	25 Commission and based on rates in effect at the time of
1772	1772	26 installation.
1773	1773
1774	1774
1775	1775
1776	1776
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1779	1779
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1783	1783	1 (2) A project shall be considered cost-effective only
1784	1784	2 if it is estimated to produce significant immediate net
1785	1785	3 savings, not counting copayments voluntarily made by
1786	1786	4 customers. The Commission may establish guidelines by
1787	1787	5 which this required savings is estimated.
1788	1788	6 (3) Net savings shall include savings across all fuel
1789	1789	7 sources, not limited to electricity and natural gas.
1790	1790	8 (4) The calculation of project cost-effectiveness
1791	1791	9 shall not exclude projects that:
1792	1792	10 (A) would raise customer costs in a particular
1793	1793	11 month so long as customers see annual project savings;
1794	1794	12 or
1795	1795	13 (B) increase electric load and accompanying costs
1796	1796	14 when a heating electrification project results in the
1797	1797	15 ability to cool part or all of a home that was not
1798	1798	16 previously cooled. In such cases, the increased
1799	1799	17 electricity consumption associated with that added
1800	1800	18 cooling shall not be included in calculations of net
1801	1801	19 savings. Extreme heat poses an increasing risk to
1802	1802	20 Illinois communities. As such, it is in the public
1803	1803	21 interest to mitigate that risk through the addition of
1804	1804	22 building cooling systems.
1805	1805	23 However, any expected increase in electric load and
1806	1806	24 customer costs should be clearly communicated to impacted
1807	1807	25 customers, along with any options for mitigating that
1808	1808	26 increase.
1809	1809
1810	1810
1811	1811
1812	1812
1813	1813
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1815	1815
1816	1816
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1819	1819	1 (k) The Program should be modeled after the Pay As You Save
1820	1820	2 system, by which Program participants finance energy projects
1821	1821	3 using the savings that the energy project creates with a
1822	1822	4 tariffed on-bill program. Eligible projects shall not create
1823	1823	5 personal debt for the customer, result in a lien in the event
1824	1824	6 of nonpayment, or require customers to pay monthly charges for
1825	1825	7 any upgrade that fails and is not repaired within 21 days. The
1826	1826	8 utility may restart charges once the upgrade is repaired and
1827	1827	9 functioning and extend the term of payments to recover its
1828	1828	10 costs for missed payments and deferred cost recovery,
1829	1829	11 providing the upgrade continues to function.
1830	1830	12 (l) Any energy project that is defective or damaged due to
1831	1831	13 no fault of the participant must be either replaced or
1832	1832	14 repaired with parts that meet industry standards at the cost
1833	1833	15 of the utility or vendor, as specified by the Commission, and
1834	1834	16 charges shall be suspended until repairs or replacement is
1835	1835	17 completed. The Commission may establish, increase, or replace
1836	1836	18 the requirements imposed in this subsection. The Commission
1837	1837	19 may determine that this responsibility is best handled by
1838	1838	20 participating project vendors in the form of insurance,
1839	1839	21 contractual guarantees, or other mechanisms, and issue rules
1840	1840	22 detailing this requirement. Customers shall not be charged
1841	1841	23 monthly payments for upgrades that are no longer functioning.
1842	1842	24 (m) In the event of nonpayment, the remaining balance due
1843	1843	25 to pay off the system shall remain with the utility meter at an
1844	1844	26 upgraded location. The Commission shall establish conditions
1845	1845
1846	1846
1847	1847
1848	1848
1849	1849
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1851	1851
1852	1852
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1855	1855	1 subject to this constraint in the event of nonpayment that are
1856	1856	2 in accordance with the Pay As You Save system.
1857	1857	3 (n) The utility shall make every effort to ensure that
1858	1858	4 customers who are income-qualified for free energy upgrade
1859	1859	5 programs take full advantage of those programs first before
1860	1860	6 using the Equitable Energy Upgrade Program. If the demand by
1861	1861	7 utility customers exceeds the Program capital supply in a
1862	1862	8 given year, utilities shall ensure that 50% of participants
1863	1863	9 are:
1864	1864	10 (1) customers in neighborhoods where a majority of
1865	1865	11 households make 150% or less of area median income; or
1866	1866	12 (2) residents of environmental justice communities.
1867	1867	13 (o) Utilities shall endeavor to inform customers about the
1868	1868	14 availability of the Program, their potential eligibility for
1869	1869	15 participation in the Program, and whether they are likely to
1870	1870	16 save money on the basis of an estimate conducted using
1871	1871	17 variables consistent with the Program that the utility has at
1872	1872	18 its disposal. The Commission may establish guidelines by which
1873	1873	19 utilities must abide by this directive and alternatives if the
1874	1874	20 Commission deems utilities' efforts as inadequate.
1875	1875	21 (p) Subject to Commission specifications under subsection
1876	1876	22 (c), each utility shall work with certified project vendors
1877	1877	23 selected using a request for proposals process to establish
1878	1878	24 the terms and processes under which a utility can install
1879	1879	25 eligible renewable energy generation and energy storage
1880	1880	26 systems using the capital to fit the Equitable Energy Upgrade
1881	1881
1882	1882
1883	1883
1884	1884
1885	1885
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1887	1887
1888	1888
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1891	1891	1 model. The utility certified project vendor shall explain and
1892	1892	2 offer the approved upgrades to customers and shall assist
1893	1893	3 customers in applying for financing through the Program. As
1894	1894	4 part of the process, utilities vendors shall also provide
1895	1895	5 participants with information about any other relevant
1896	1896	6 incentives that may be available and customer service
1897	1897	7 regarding the effective use of the upgrades.
1898	1898	8 Nothing shall preclude gas and electric utilities that
1899	1899	9 have overlapping service territories from jointly implementing
1900	1900	10 and delivering the Program.
1901	1901	11 (q) A participating An electric utility shall recover all
1902	1902	12 of the prudently incurred costs of offering a program approved
1903	1903	13 by the Commission under this Section. For investor-owned
1904	1904	14 utilities, shareholder incentives will be proportional to
1905	1905	15 meeting Commission approved thresholds for the number of
1906	1906	16 customers served and the amount of its investments in those
1907	1907	17 locations.
1908	1908	18 (r) The Commission shall adopt all rules necessary for the
1909	1909	19 administration of this Section.
1910	1910	20 (Source: P.A. 102-662, eff. 9-15-21.)
1911	1911	21 (220 ILCS 5/Art. XXIII heading new)
1912	1912	22 ARTICLE XXIII. CLEAN BUILDING HEATING LAW
1913	1913	23 (220 ILCS 5/23-101 new)
1914	1914	24 Sec. 23-101. Short title. This Article may be cited as the
1915	1915
1916	1916
1917	1917
1918	1918
1919	1919
1920	1920	SB3935 - 53 - LRB103 40383 LNS 72670 b
1921	1921
1922	1922
1923	1923	SB3935- 54 -LRB103 40383 LNS 72670 b SB3935 - 54 - LRB103 40383 LNS 72670 b
1924	1924	SB3935 - 54 - LRB103 40383 LNS 72670 b
1925	1925	1 Clean Building Heating Law. References in this Article to
1926	1926	2 "this Act" mean this Article.
1927	1927	3 (220 ILCS 5/23-102 new)
1928	1928	4 Sec. 23-102. Findings. The General Assembly finds that the
1929	1929	5 adoption and use of clean, zero-pollution space and water
1930	1930	6 heating appliances in residential and commercial buildings
1931	1931	7 would benefit the State by (i) protecting the air that
1932	1932	8 Illinoisans breathe through reducing unhealthy levels of smog
1933	1933	9 and ozone, (ii) minimizing health risks associated with air
1934	1934	10 pollution, including respiratory ailments, cardiovascular
1935	1935	11 illnesses, and premature death, which are linked to exposure
1936	1936	12 to fine particulate matter and nitrogen dioxide, (iii)
1937	1937	13 assisting the State in achieving attainment of federal
1938	1938	14 National Ambient Air Quality Standards for ozone and meeting
1939	1939	15 the State's obligations under the federal Regional Haze Rule,
1940	1940	16 (iv) reducing climate pollution in service to the State's
1941	1941	17 net-zero greenhouse gas goals, and (v) contributing to the
1942	1942	18 State's economy through building and mobilizing a trained and
1943	1943	19 competitive workforce to install and maintain newly purchased
1944	1944	20 appliances.
1945	1945	21 (220 ILCS 5/23-103 new)
1946	1946	22 Sec. 23-103. Definitions. As used in this Article:
1947	1947	23 "Annual fuel utilization efficiency" or "AFUE" means the
1948	1948	24 efficiency as defined by Section 4.2.35 of the Code of Federal
1949	1949
1950	1950
1951	1951
1952	1952
1953	1953
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1955	1955
1956	1956
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1958	1958	SB3935 - 55 - LRB103 40383 LNS 72670 b
1959	1959	1 Regulations, Title 10, Part 430, Subpart B, Appendix N.
1960	1960	2 "Boiler" or "water heater" means a product used to heat
1961	1961	3 water or produce steam and that is not exclusively used to
1962	1962	4 produce electricity for sale. "Boiler" does not include any
1963	1963	5 waste heat recovery boiler that is used to recover sensible
1964	1964	6 heat from the exhaust of a combustion turbine or any unfired
1965	1965	7 waste heat recovery boiler that is used to recover sensible
1966	1966	8 heat from the exhaust of any combustion equipment.
1967	1967	9 "Btu" means British thermal unit, which is a scientific
1968	1968	10 unit of measurement equal to the quantity of heat required to
1969	1969	11 raise the temperature of one pound of water by one degree
1970	1970	12 Fahrenheit at approximately 60 degrees Fahrenheit.
1971	1971	13 "Director" means the Director of the Environmental
1972	1972	14 Protection Agency or the Director's designee.
1973	1973	15 "Fan-type central furnace" means a self-contained space
1974	1974	16 heater providing for circulation of heated air at pressures
1975	1975	17 other than atmospheric through ducts more than 25 cm (10 in) in
1976	1976	18 length.
1977	1977	19 "Furnace" means a product designed to be a source of
1978	1978	20 interior space heating.
1979	1979	21 "Heat input" means the heat released by the combustion of
1980	1980	22 fuels in a unit based on the higher heating value of fuel,
1981	1981	23 excluding the enthalpy of incoming combustion air.
1982	1982	24 "Heat output" means the product obtained by multiplying
1983	1983	25 the recovery efficiency, as defined by Section 6.1.3 of the
1984	1984	26 Code of Federal Regulation, Title 10, Part 430, Subpart B,
1985	1985
1986	1986
1987	1987
1988	1988
1989	1989
1990	1990	SB3935 - 55 - LRB103 40383 LNS 72670 b
1991	1991
1992	1992
1993	1993	SB3935- 56 -LRB103 40383 LNS 72670 b SB3935 - 56 - LRB103 40383 LNS 72670 b
1994	1994	SB3935 - 56 - LRB103 40383 LNS 72670 b
1995	1995	1 Appendix E, by the input rating of the unit.
1996	1996	2 "NOx" and "NOx emissions" means the sum of nitric oxide and
1997	1997	3 nitrogen dioxide in the unit's flue gas, collectively
1998	1998	4 expressed as nitrogen dioxide.
1999	1999	5 "Rated heat input capacity" means the heat input capacity
2000	2000	6 specified on the nameplate of the combustion unit. If a unit
2001	2001	7 has been altered or modified such that its maximum heat input
2002	2002	8 is different from the heat input capacity specified on the
2003	2003	9 nameplate, the new maximum heat input is the unit's rated heat
2004	2004	10 input capacity.
2005	2005	11 "Useful heat delivered to the heated space" means the
2006	2006	12 annual fuel utilization efficiency (expressed as a fraction)
2007	2007	13 multiplied by the heat input.
2008	2008	14 (220 ILCS 5/23-104 new)
2009	2009	15 Sec. 23-104. Applicability. This Article applies to any
2010	2010	16 person who sells, installs, offers for sale, leases, or offers
2011	2011	17 for lease the following products in this State, as well as any
2012	2012	18 manufacturer who intends to sell or distribute for sale or
2013	2013	19 installation the following products in this State: (i) new
2014	2014	20 water heaters and boilers with a rated heat input capacity of
2015	2015	21 2,000,000 Btus per hour or less; and (ii) new furnaces with a
2016	2016	22 rated heat input capacity of 175,000 Btus per hour or less,
2017	2017	23 and, in the case of combination heating and cooling units, a
2018	2018	24 cooling rate of 65,000 Btus per hour or less.
2019	2019
2020	2020
2021	2021
2022	2022
2023	2023
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2025	2025
2026	2026
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2028	2028	SB3935 - 57 - LRB103 40383 LNS 72670 b
2029	2029	1 (220 ILCS 5/23-105 new)
2030	2030	2 Sec. 23-105. Emissions standards for new building heating
2031	2031	3 and water heating appliances.
2032	2032	4 (a) On and after January 1, 2025, a person shall not sell,
2033	2033	5 install, offer for sale, lease, or offer for lease, and a
2034	2034	6 manufacturer shall not sell or distribute for sale or
2035	2035	7 installation, the following new products in this State:
2036	2036	8 (1) water heaters with a rated heat input capacity of
2037	2037	9 75,000 Btus per hour or less, and any water heaters with
2038	2038	10 power assist, that emit more than 10 nanograms of NOx per
2039	2039	11 joule of heat output;
2040	2040	12 (2) water heaters and boilers with a rated heat input
2041	2041	13 capacity from 75,001 to 2,000,000 Btus per hour,
2042	2042	14 inclusive, that emit more than 14 nanograms of NOx per
2043	2043	15 joule of heat output; or
2044	2044	16 (3) fan-type central furnaces with a rated heat input
2045	2045	17 capacity of 175,000 Btus per hour or less that emit more
2046	2046	18 than 14 nanograms of NOx per joule of heat output.
2047	2047	19 (b) On and after January 1, 2030, a person shall not sell,
2048	2048	20 install, offer for sale, lease, or offer for lease, and a
2049	2049	21 manufacturer shall not sell or distribute for sale or
2050	2050	22 installation, the following new products in this State:
2051	2051	23 (1) water heaters and boilers with a rated heat input
2052	2052	24 capacity of 2,000,000 Btus per hour or less that emit more
2053	2053	25 than 0.0 nanograms of NOx per joule of heat output; or
2054	2054	26 (2) furnaces with a rated heat input capacity of
2055	2055
2056	2056
2057	2057
2058	2058
2059	2059
2060	2060	SB3935 - 57 - LRB103 40383 LNS 72670 b
2061	2061
2062	2062
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2064	2064	SB3935 - 58 - LRB103 40383 LNS 72670 b
2065	2065	1 175,000 Btus per hour or less that emit more than 0.0
2066	2066	2 nanograms of NOx per joule of heat output. This includes
2067	2067	3 non-central installations, such as wall furnaces, as well
2068	2068	4 as units installed in non-residential applications.
2069	2069	5 (220 ILCS 5/23-106 new)
2070	2070	6 Sec. 23-106. Certification and identification of compliant
2071	2071	7 products.
2072	2072	8 (a) The manufacturer shall obtain confirmation from an
2073	2073	9 independent testing laboratory that each water heater, boiler,
2074	2074	10 or furnace model that is subject to the requirements of this
2075	2075	11 Article and that the manufacturer intends to sell or
2076	2076	12 distribute for sale or installation into the State has been
2077	2077	13 tested in accordance with the procedures in Section 23-107.
2078	2078	14 This confirmation shall include the following statement signed
2079	2079	15 and dated by the person responsible for the report at the
2080	2080	16 independent testing laboratory: "Based on my inquiry of those
2081	2081	17 individuals with primary responsibility for obtaining the
2082	2082	18 information, I certify that the statements and information in
2083	2083	19 this source test report are to the best of my knowledge and
2084	2084	20 belief true, accurate, and complete. I am aware that there are
2085	2085	21 significant civil and criminal penalties for submitting false
2086	2086	22 statements or information or omitting required statements or
2087	2087	23 information, including the possibility of fine or
2088	2088	24 imprisonment."
2089	2089	25 (b) For each such product model, the manufacturer shall
2090	2090
2091	2091
2092	2092
2093	2093
2094	2094
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2096	2096
2097	2097
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2099	2099	SB3935 - 59 - LRB103 40383 LNS 72670 b
2100	2100	1 submit to the Director either of the following:
2101	2101	2 (1) A statement that each product model meets the
2102	2102	3 emission standards set forth in Section 23-105. The
2103	2103	4 statement must:
2104	2104	5 (A) provide the following general information:
2105	2105	6 name and address of manufacturer, brand name, trade
2106	2106	7 name, model number, and rated heat input capacity;
2107	2107	8 (B) provide a description of the model being
2108	2108	9 certified;
2109	2109	10 (C) include a complete certification source test
2110	2110	11 report demonstrating that the product model was tested
2111	2111	12 in accordance with procedures in Section 23-107 and a
2112	2112	13 written statement that the model complies with Section
2113	2113	14 23-105;
2114	2114	15 (D) include the following statement signed and
2115	2115	16 dated by a managerial level employee responsible for
2116	2116	17 the certification request at the manufacturer: "Based
2117	2117	18 on my inquiry of those individuals with primary
2118	2118	19 responsibility for obtaining the information, I
2119	2119	20 certify that the statements and information in this
2120	2120	21 request for certification are to the best of my
2121	2121	22 knowledge and belief true, accurate, and complete. I
2122	2122	23 am aware that there are significant civil and criminal
2123	2123	24 penalties for submitting false statements or
2124	2124	25 information or omitting required statements or
2125	2125	26 information, including the possibility of fine or
2126	2126
2127	2127
2128	2128
2129	2129
2130	2130
2131	2131	SB3935 - 59 - LRB103 40383 LNS 72670 b
2132	2132
2133	2133
2134	2134	SB3935- 60 -LRB103 40383 LNS 72670 b SB3935 - 60 - LRB103 40383 LNS 72670 b
2135	2135	SB3935 - 60 - LRB103 40383 LNS 72670 b
2136	2136	1 imprisonment.";
2137	2137	2 (E) be submitted to the Director no more than 90
2138	2138	3 days after the date of the emissions compliance test
2139	2139	4 conducted in accordance with Section 23-107; and
2140	2140	5 (F) be submitted to the Director no less than 90
2141	2141	6 days before the intention to sell or distribute a new
2142	2142	7 product model within the State or no less than 90 days
2143	2143	8 before the dates described in Section 23-105.
2144	2144	9 (2) An approved South Coast Air Quality Management
2145	2145	10 District (SCAQMD) certification for each product model
2146	2146	11 issued pursuant to SCAQMD Rules 1111, 1121, or 1146.2, to
2147	2147	12 demonstrate compliance with subsection (a) of Section
2148	2148	13 23-105.
2149	2149	14 (c) The manufacturer shall display the model number and
2150	2150	15 the certification status of a product complying with this
2151	2151	16 Article on the shipping carton and rating plate of each unit.
2152	2152	17 (220 ILCS 5/23-107 new)
2153	2153	18 Sec. 23-107. Determination of emissions. Emissions from
2154	2154	19 products subject to the requirements of this Article shall be
2155	2155	20 tested in accordance with the following provisions:
2156	2156	21 (1) Each product model shall receive certification
2157	2157	22 based on emission tests of a randomly selected unit of
2158	2158	23 that model.
2159	2159	24 (2) The measurement of NOx emissions shall be
2160	2160	25 conducted in accordance with EPA Reference Method 7 (40
2161	2161
2162	2162
2163	2163
2164	2164
2165	2165
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2167	2167
2168	2168
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2171	2171	1 CFR Part 60, Appendix A), Test Methods 7A-7E.
2172	2172	2 (3) Each tested water heater shall be operated in
2173	2173	3 accordance with Section 2.4 of American National Standards
2174	2174	4 ANSI Z21.10.1-1990 at normal test pressure, input rates,
2175	2175	5 and with a 5-foot exhaust stack installed during the NOx
2176	2176	6 emissions tests.
2177	2177	7 (4) Each tested furnace shall be operated in
2178	2178	8 accordance with the procedures specified in Section 3.1 of
2179	2179	9 the Code of Federal Regulations, Title 10, Part 430,
2180	2180	10 Subpart B, Appendix N.
2181	2181	11 (5) One of the 2 following formulas shall be used to
2182	2182	12 calculate the NOx emission rate in nanograms of NOx per
2183	2183	13 joule of heat output:
2184	2184	14 N=4.566104PUHCE
2185	2185	15 or
2186	2186	16 N=3.6551010P20.9-YZE
2187	2187	17 Where:
2188	2188	18 N = Calculated mass emissions of NOx per unit of useful
2189	2189	19 heat (nanograms per joule of useful heat delivered to the
2190	2190	20 heated space).
2191	2191	21 P = Measured concentration of NOx in flue gas (parts
2192	2192	22 per million by volume).
2193	2193	23 Y = Measured concentration of O2 in flue gas
2194	2194	24 (percentage by volume).
2195	2195	25 Z = Gross heating value of gas (joules per cubic meter
2196	2196	26 at 0.0 degrees Celsius, 1 atm).
2197	2197
2198	2198
2199	2199
2200	2200
2201	2201
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2203	2203
2204	2204
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2206	2206	SB3935 - 62 - LRB103 40383 LNS 72670 b
2207	2207	1 E = AFUE (percentage), as defined in Section 23-103.
2208	2208	2 U = Concentration of CO2 in water-free flue gas for
2209	2209	3 stoichiometric combustion (percentage by volume).
2210	2210	4 H = Gross heating value of the fuel (Btu per cubic
2211	2211	5 foot, 60 degrees Fahrenheit, 30-in Hg).
2212	2212	6 C = Measured concentration of CO2 in flue gas
2213	2213	7 (percentage by volume).
2214	2214	8 (220 ILCS 5/23-108 new)
2215	2215	9 Sec. 23-108. Enforcement and penalties.
2216	2216	10 (a) The Director may require the emission test results to
2217	2217	11 be provided when deemed necessary to verify compliance and may
2218	2218	12 periodically conduct on-site inspections and tests as are
2219	2219	13 deemed necessary to ensure compliance. Such verifications
2220	2220	14 shall be conducted at least once within 2 years of the date
2221	2221	15 described in subsection (a) of Section 23-105 and again at
2222	2222	16 least once every 5 years thereafter.
2223	2223	17 (b) If the Director determines that a manufacturer,
2224	2224	18 distributor, retailer, installer, or other person is in
2225	2225	19 violation of any provision of this Act, that violation is
2226	2226	20 subject to fines and penalties according to the Director's
2227	2227	21 authority.
2228	2228	22 (c) For purposes of this Section, fines or penalties may
2229	2229	23 be levied against an installer who installs a product covered
2230	2230	24 by this Article in violation of this Article, however they
2231	2231	25 shall not be levied against such installer's nonmanagerial
2232	2232
2233	2233
2234	2234
2235	2235
2236	2236
2237	2237	SB3935 - 62 - LRB103 40383 LNS 72670 b
2238	2238
2239	2239
2240	2240	SB3935- 63 -LRB103 40383 LNS 72670 b SB3935 - 63 - LRB103 40383 LNS 72670 b
2241	2241	SB3935 - 63 - LRB103 40383 LNS 72670 b
2242	2242	1 employees, if any, who perform such installation.
2243	2243	2 (d) Fines and penalties collected under this Section may
2244	2244	3 be used for supplemental environmental programs to offset the
2245	2245	4 cost of furnace and water heater replacements in low-income
2246	2246	5 and moderate-income households or households in environmental
2247	2247	6 justice communities, according to the Director's authority to
2248	2248	7 use fines and penalties.
2249	2249	8 (e) On or before the date described in subsection (a) of
2250	2250	9 Section 23-105, the Director shall establish a process whereby
2251	2251	10 individuals may anonymously report potential violations of
2252	2252	11 this Act. The Director shall investigate any such reported
2253	2253	12 potential violations.
2254	2254	13 (220 ILCS 5/23-109 new)
2255	2255	14 Sec. 23-109. Additional regulation. The Director may adopt
2256	2256	15 rules as necessary to ensure the proper implementation and
2257	2257	16 enforcement of this Article.
2258	2258	17 (220 ILCS 5/23-111 new)
2259	2259	18 Sec. 23-111. Revisions to building codes to comply with
2260	2260	19 greenhouse gas emissions reduction requirements.
2261	2261	20 (a) Beginning no later than July 1, 2025, to support the
2262	2262	21 State's achievement of its greenhouse gas emissions
2263	2263	22 requirements and to improve public health outcomes, the State
2264	2264	23 building code shall require that the site energy use intensity
2265	2265	24 between minimally compliant but otherwise similar buildings of
2266	2266
2267	2267
2268	2268
2269	2269
2270	2270
2271	2271	SB3935 - 63 - LRB103 40383 LNS 72670 b
2272	2272
2273	2273
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2275	2275	SB3935 - 64 - LRB103 40383 LNS 72670 b
2276	2276	1 differing fuel types shall not be significantly unequal in all
2277	2277	2 new construction statewide. Beginning no later than July 1,
2278	2278	3 2025, to the fullest extent feasible, the building code shall
2279	2279	4 require that any area or service within a project where
2280	2280	5 infrastructure, building systems, or equipment used for the
2281	2281	6 combustion of fossil fuels are installed must be all-electric
2282	2282	7 ready.
2283	2283	8 (b) Requirements for all-electric ready new construction
2284	2284	9 for residential buildings shall include:
2285	2285	10 (1) a heat pump space heater ready. Systems using gas
2286	2286	11 or propane furnaces to serve individual dwelling units
2287	2287	12 shall include the following:
2288	2288	13 (A) a dedicated 240 volt branch circuit wiring
2289	2289	14 shall be installed within 3 feet from the furnace and
2290	2290	15 accessible to the furnace with no obstructions. The
2291	2291	16 branch circuit conductors shall be rated at 30 amps
2292	2292	17 minimum. The blank cover shall be identified as "240V
2293	2293	18 ready"; and
2294	2294	19 (B) the main electrical service panel shall have a
2295	2295	20 reserved space to allow for the installation of a
2296	2296	21 double pole circuit breaker for a future heat pump
2297	2297	22 space heater installation. The reserved space shall be
2298	2298	23 permanently marked as "For Future 240V use";
2299	2299	24 (2) an electric cooktop ready. Systems using gas or
2300	2300	25 propane cooktops to serve individual dwelling units shall
2301	2301	26 include the following:
2302	2302
2303	2303
2304	2304
2305	2305
2306	2306
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2308	2308
2309	2309
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2311	2311	SB3935 - 65 - LRB103 40383 LNS 72670 b
2312	2312	1 (A) a dedicated 240 volt branch circuit wiring
2313	2313	2 shall be installed within 3 feet from the cooktop and
2314	2314	3 accessible to the cooktop with no obstructions. The
2315	2315	4 branch circuit conductors shall be rated at 50 amps
2316	2316	5 minimum. The blank cover shall be identified as "240V
2317	2317	6 ready"; and
2318	2318	7 (B) the main electrical service panel shall have a
2319	2319	8 reserved space to allow for the installation of a
2320	2320	9 double pole circuit breaker for a future electric
2321	2321	10 cooktop installation. The reserved space shall be
2322	2322	11 permanently marked as "For Future 240V Use";
2323	2323	12 (3) an electric clothes dryer ready. Clothes dryer
2324	2324	13 locations with gas or propane plumbing shall include the
2325	2325	14 following:
2326	2326	15 (A) systems serving individual dwelling units
2327	2327	16 shall include:
2328	2328	17 (i) a dedicated 240 volt branch circuit wiring
2329	2329	18 shall be installed within 3 feet from the clothes
2330	2330	19 dryer location and accessible to the clothes dryer
2331	2331	20 location with no obstructions. The branch circuit
2332	2332	21 conductors shall be rated at 30 amps minimum. The
2333	2333	22 blank cover shall be identified as "240V ready";
2334	2334	23 and
2335	2335	24 (ii) the main electrical service panel shall
2336	2336	25 have a reserved space to allow for the
2337	2337	26 installation of a double pole circuit breaker for
2338	2338
2339	2339
2340	2340
2341	2341
2342	2342
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2344	2344
2345	2345
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2347	2347	SB3935 - 66 - LRB103 40383 LNS 72670 b
2348	2348	1 a future electric clothes dryer installation. The
2349	2349	2 reserved space shall be permanently marked as "For
2350	2350	3 Future 240V Use"; and
2351	2351	4 (B) systems in common use areas shall include
2352	2352	5 conductors or raceway shall be installed with
2353	2353	6 termination points at the main electrical panel, via
2354	2354	7 subpanels if applicable, to a location no more than 3
2355	2355	8 feet from each gas outlet or a designated location of
2356	2356	9 future electric replacement equipment. Both ends of
2357	2357	10 the conductors or raceway shall be labeled "Future
2358	2358	11 240V Use". The conductors or raceway and any
2359	2359	12 intervening subpanels, panelboards, switchboards, and
2360	2360	13 busbars shall be sized to meet the future electric
2361	2361	14 power requirements, at the service voltage to the
2362	2362	15 point at which the conductors serving the building
2363	2363	16 connect to the utility distribution system. The
2364	2364	17 capacity requirements may be adjusted for demand
2365	2365	18 factors. Gas flow rates shall be determined in
2366	2366	19 accordance with State plumbing code. Capacity shall be
2367	2367	20 one of the following:
2368	2368	21 (i) 0.24 amps at 208/240 volts per clothes
2369	2369	22 dryer;
2370	2370	23 (ii) 2.6 kVA for each 10,000 Btu per hour of
2371	2371	24 rated gas input or gas pipe capacity; or
2372	2372	25 (iii) the electrical power required to provide
2373	2373	26 equivalent functionality of the gas-powered
2374	2374
2375	2375
2376	2376
2377	2377
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2380	2380
2381	2381
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2384	2384	1 equipment as calculated and documented by the
2385	2385	2 responsible person associated with the project;
2386	2386	3 and
2387	2387	4 (4) a heat pump water heater ready. Systems using gas
2388	2388	5 or propane service water heaters to serve individual
2389	2389	6 dwelling units shall include the following:
2390	2390	7 (A) a dedicated 240 volt branch circuit wiring
2391	2391	8 shall be installed within 3 feet from the furnace and
2392	2392	9 accessible to the furnace with no obstructions. The
2393	2393	10 branch circuit conductors shall be rated at 30 amps
2394	2394	11 minimum. The blank cover shall be identified as "240V
2395	2395	12 ready";
2396	2396	13 (B) the main electrical service panel shall have a
2397	2397	14 reserved space to allow for the installation of a
2398	2398	15 double pole circuit breaker for a future heat pump
2399	2399	16 water heater installation. The reserved space shall be
2400	2400	17 permanently marked as "For Future 240V use"; and
2401	2401	18 (C) an indoor space that is at least 3 feet by 3
2402	2402	19 feet by 7 feet high shall be available surrounding or
2403	2403	20 within 3 feet of the installed water heater, except
2404	2404	21 where a tankless water heater is installed.
2405	2405	22 (c) Newly constructed commercial buildings shall meet the
2406	2406	23 requirements of Appendix CH of the 2024 version of the
2407	2407	24 International Energy Conservation Code.
2408	2408	25 (d) Beginning no later than January 1, 2026, the State
2409	2409	26 building code must include a prescriptive requirement for
2410	2410
2411	2411
2412	2412
2413	2413
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2416	2416
2417	2417
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2419	2419	SB3935 - 68 - LRB103 40383 LNS 72670 b
2420	2420	1 central air conditioning systems that are being removed due to
2421	2421	2 equipment failure or as part of a larger renovation project,
2422	2422	3 that they must be replaced with a heat pump capable of both
2423	2423	4 heating and cooling in accordance with the following
2424	2424	5 requirements:
2425	2425	6 (1) Requirements for residential buildings:
2426	2426	7 (A) If an existing central air conditioner is
2427	2427	8 removed from a natural gas, propane, or fuel oil
2428	2428	9 forced air system that is to remain in place, the
2429	2429	10 replacement heat pump must be sized to meet the
2430	2430	11 cooling load of the home with controls allowing the
2431	2431	12 heat pump to provide the primary heating and furnace
2432	2432	13 as "backup" heating.
2433	2433	14 (B) If an existing central air conditioner is
2434	2434	15 connected to a natural gas, propane, or fuel oil
2435	2435	16 forced air system that is to also be replaced, the
2436	2436	17 replacement heat pump must be sized to meet all loads
2437	2437	18 of the home. Exceptions may be given for replacement
2438	2438	19 systems that require the main electrical service panel
2439	2439	20 to be upgraded.
2440	2440	21 (C) If an existing central air conditioner and its
2441	2441	22 accompanying ductwork are replaced, the replacement
2442	2442	23 heat pump must be sized to meet all loads of the home.
2443	2443	24 (2) Requirements for commercial buildings: If an
2444	2444	25 existing rooftop packaged unit is removed, the replacement
2445	2445	26 unit must be a heat pump. This requirement only applies to
2446	2446
2447	2447
2448	2448
2449	2449
2450	2450
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2452	2452
2453	2453
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2455	2455	SB3935 - 69 - LRB103 40383 LNS 72670 b
2456	2456	1 existing rooftop packaged units that are 65,000 Btu/h or
2457	2457	2 less. Exceptions may be given for replacement systems that
2458	2458	3 require the main electrical service panel to be upgraded.
2459	2459	4 (220 ILCS 5/23-112 new)
2460	2460	5 Sec. 23-112. Revisions to gas service line extensions to
2461	2461	6 comply with greenhouse gas emissions reduction requirements.
2462	2462	7 (a) To support the State's achievement of its greenhouse
2463	2463	8 gas emissions requirements, and to improve public health
2464	2464	9 outcomes, no gas company may furnish or supply gas service,
2465	2465	10 instrumentalities, and facilities to any commercial or
2466	2466	11 residential location that did not receive gas service or did
2467	2467	12 not file applications for gas service on or before June 30,
2468	2468	13 2027.
2469	2469	14 (b) The following locations are exempt from the
2470	2470	15 requirements of subsection (a):
2471	2471	16 (1) buildings that require gas systems for emergency
2472	2472	17 backup power; and
2473	2473	18 (2) buildings specifically designated for occupancy by
2474	2474	19 a commercial food establishment, laboratory, laundromat,
2475	2475	20 hospital, or crematorium.
2476	2476	21 (220 ILCS 5/23-301 new)
2477	2477	22 Sec. 23-301. Severability. If any provision of this
2478	2478	23 Article or the application of this Article to any person or
2479	2479	24 circumstance is held invalid, such invalidity does not affect
2480	2480
2481	2481
2482	2482
2483	2483
2484	2484
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2486	2486
2487	2487
2488	2488	SB3935- 70 -LRB103 40383 LNS 72670 b SB3935 - 70 - LRB103 40383 LNS 72670 b
2489	2489	SB3935 - 70 - LRB103 40383 LNS 72670 b
2490	2490	1 other provisions or applications of the Article that can be
2491	2491	2 given effect without the invalid provision or application, and
2492	2492	3 to this end the provisions of this Article are declared to be
2493	2493	4 severable.
2494	2494	5 (220 ILCS 5/Art. XXIV heading new)
2495	2495	6 ARTICLE XXIV. 2050 HEAT DECARBONIZATION STANDARD
2496	2496	7 (220 ILCS 5/24-101 new)
2497	2497	8 Sec. 24-101. Legislative policy. To provide the highest
2498	2498	9 quality of life for the residents of this State and to provide
2499	2499	10 for a clean and healthy environment, it is the policy of this
2500	2500	11 State that natural gas utilities, otherwise referred to as
2501	2501	12 "obligated parties", shall transition to 100% zero emissions
2502	2502	13 by 2050. Under the heat decarbonization standard, each gas
2503	2503	14 utility has an annual obligation, beginning in 2030, to reduce
2504	2504	15 the greenhouse gas emissions resulting from the combustion of
2505	2505	16 the fuels it delivers to its customers. The emission reduction
2506	2506	17 obligation for 2030 shall be 20% relative to each utility's
2507	2507	18 2020 greenhouse gas emissions levels on a weather-normalized
2508	2508	19 basis. The emission reduction obligation shall grow by 4
2509	2509	20 percentage points per year every year thereafter, such that
2510	2510	21 the annual emission reduction requirement will reach 24% in
2511	2511	22 2031, 28% in 2032, 32% in 2033, 36% in 2034, 40% by 2035, 44%
2512	2512	23 by 2036, 48% by 2037, 52% by 2038, 56% by 2039, 60% by 2040,
2513	2513	24 64% by 2041, 68% by 2042, 72% by 2043, 76% by 2044, 80% by
2514	2514
2515	2515
2516	2516
2517	2517
2518	2518
2519	2519	SB3935 - 70 - LRB103 40383 LNS 72670 b
2520	2520
2521	2521
2522	2522	SB3935- 71 -LRB103 40383 LNS 72670 b SB3935 - 71 - LRB103 40383 LNS 72670 b
2523	2523	SB3935 - 71 - LRB103 40383 LNS 72670 b
2524	2524	1 2045, 84% by 2046, 88% by 2047, 92% by 2048, 96% by 2049, and
2525	2525	2 100% by 2050. This obligation shall be referred to as the "heat
2526	2526	3 decarbonization standard". The heat decarbonization standard
2527	2527	4 must be met by the lowest societal cost combination of supply
2528	2528	5 and demand-side resources. References in this Article to "this
2529	2529	6 Act" means this Article.
2530	2530	7 (220 ILCS 5/24-102 new)
2531	2531	8 Sec. 24-102. Options for compliance.
2532	2532	9 (a) Obligated parties must demonstrate compliance with the
2533	2533	10 heat decarbonization standard using a combination of:
2534	2534	11 (1) emission reductions achieved from the obligated
2535	2535	12 parties' own customers; and
2536	2536	13 (2) clean heat credits purchased from other gas
2537	2537	14 utilities that are also obligated parties in this State.
2538	2538	15 (b) Prior to 2035, at least 70% of each obligated party's
2539	2539	16 emission reduction obligation must be met through emission
2540	2540	17 reductions achieved from its own customers, with no more than
2541	2541	18 30% of the emission reduction obligation in any year met
2542	2542	19 through the purchase of clean heat credits. From 2035 through
2543	2543	20 2040, at least 80% of each obligated party's emission
2544	2544	21 reduction requirement must be met through emission reductions
2545	2545	22 from its own customers, with no more than 20% met through the
2546	2546	23 purchase of clean heat credits. After 2040, at least 90% of
2547	2547	24 each obligated party's emission reduction requirement must be
2548	2548	25 met through emission reductions achieved from its own
2549	2549
2550	2550
2551	2551
2552	2552
2553	2553
2554	2554	SB3935 - 71 - LRB103 40383 LNS 72670 b
2555	2555
2556	2556
2557	2557	SB3935- 72 -LRB103 40383 LNS 72670 b SB3935 - 72 - LRB103 40383 LNS 72670 b
2558	2558	SB3935 - 72 - LRB103 40383 LNS 72670 b
2559	2559	1 customers, with no more than 10% met through the purchase of
2560	2560	2 clean heat credits.
2561	2561	3 (220 ILCS 5/24-103 new)
2562	2562	4 Sec. 24-103. Measures for customer emission reduction.
2563	2563	5 Emissions must be achieved through improvements in customers'
2564	2564	6 energy conservation practices, improvements in customers'
2565	2565	7 end-use efficiency, full or partial electrification of any end
2566	2566	8 use, or switching from fossil methane to lower-emitting liquid
2567	2567	9 or gaseous fuels that are delivered by the obligated party and
2568	2568	10 directly consumed by end-use customers at the customers' homes
2569	2569	11 or businesses. Lower-emitting liquid or gaseous fuels may
2570	2570	12 include biomethane, but lower-emitting liquid or gaseous fuels
2571	2571	13 may not include hydrogen except for industrial applications.
2572	2572	14 For emission reductions from lower-emitting liquid or gaseous
2573	2573	15 fuels to be counted toward an obligated party's emission
2574	2574	16 reduction obligation, the obligated party must both acquire
2575	2575	17 the lower-emitting fuel, including its environmental
2576	2576	18 attributes, and demonstrate a contractual pathway for the
2577	2577	19 physical delivery of the fuel from the point of injection into
2578	2578	20 a pipeline to the obligated party's delivery system. Gas
2579	2579	21 utilities may not use reductions in emissions from sources
2580	2580	22 unrelated to combustion of fossil gas at customers' homes and
2581	2581	23 businesses in this State as emissions offsets or alternatives
2582	2582	24 to reductions in the customers' own emissions.
2583	2583	25 Obligated parties must meet the heat decarbonization
2584	2584
2585	2585
2586	2586
2587	2587
2588	2588
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2590	2590
2591	2591
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2594	2594	1 standard with the lowest societal cost combination of
2595	2595	2 resources, where societal cost includes infrastructure costs,
2596	2596	3 utility return on capital, the social cost of greenhouse gas
2597	2597	4 emissions and leakage, and the cost of health impacts
2598	2598	5 attributable to pollution from a given measure.
2599	2599	6 (220 ILCS 5/24-104 new)
2600	2600	7 Sec. 24-104. Demonstrating customer emission reductions.
2601	2601	8 (a) Each obligated party's emissions in each year shall be
2602	2602	9 calculated as:
2603	2603	10 (1) a weather-normalized estimate of emissions from
2604	2604	11 the actual amount of fossil methane consumed by its
2605	2605	12 customers in the year, plus;
2606	2606	13 (2) a weather-normalized estimate of emissions from
2607	2607	14 the leakage of methane, hydrogen, or other greenhouse
2608	2608	15 gases from front or behind-the-meter sources in a given
2609	2609	16 year, plus;
2610	2610	17 (3) a weather-normalized estimate of the magnitude of
2611	2611	18 remaining emissions resulting from switching from fossil
2612	2612	19 methane to lower-emitting liquid or gaseous fuels that are
2613	2613	20 delivered by the obligated party and directly consumed by
2614	2614	21 customers at the customers' homes or businesses in the
2615	2615	22 year. The magnitude of remaining emissions resulting from
2616	2616	23 switching from fossil methane to lower-emitting liquid or
2617	2617	24 gaseous fuels shall be calculated as (i) the magnitude of
2618	2618	25 emissions that would have occurred had fossil methane
2619	2619
2620	2620
2621	2621
2622	2622
2623	2623
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2625	2625
2626	2626
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2628	2628	SB3935 - 74 - LRB103 40383 LNS 72670 b
2629	2629	1 continued to be consumed, multiplied by (ii) one minus the
2630	2630	2 percent reduction in life cycle emissions resulting from
2631	2631	3 the fuel substitution. Life cycle emission calculations
2632	2632	4 shall account for emissions associated with the entire
2633	2633	5 pathway of a fuel, including extraction, production,
2634	2634	6 transportation, distribution, and combustion of the fuel
2635	2635	7 by the consumer.
2636	2636	8 (b) Obligated parties shall calculate these figures
2637	2637	9 annually, and electronically submit the figures in an easily
2638	2638	10 accessible digital format, such as .PDF, .DOCX, or XLSX, to
2639	2639	11 the Environmental Protection Agency, the Commission, the
2640	2640	12 Governor, and the General Assembly.
2641	2641	13 (c) The Environmental Protection Agency shall post these
2642	2642	14 figures for each utility on a website readily accessible to
2643	2643	15 the public, within 30 days of obligated parties submitting the
2644	2644	16 figures to the Agency, and shall maintain all previous years'
2645	2645	17 records for similar public access.
2646	2646	18 (d) The Environmental Protection Agency shall also assess
2647	2647	19 the emissions figures submitted by obligated parties to assess
2648	2648	20 those parties' compliance or lack thereof with the heat
2649	2649	21 decarbonization standard. If an obligated party does not
2650	2650	22 comply, the obligated party shall be subject to enforcement
2651	2651	23 mechanisms described in Section 24-108.
2652	2652	24 (220 ILCS 5/24-105 new)
2653	2653	25 Sec. 24-105. Tradable clean heat credits. A tradable clean
2654	2654
2655	2655
2656	2656
2657	2657
2658	2658
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2660	2660
2661	2661
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2663	2663	SB3935 - 75 - LRB103 40383 LNS 72670 b
2664	2664	1 heat credit is a tradable, intangible commodity that
2665	2665	2 represents an amount of greenhouse gas reduction, measured in
2666	2666	3 tons of CO2, achieved by a gas utility from its customers in
2667	2667	4 this State. An obligated party must achieve excess emission
2668	2668	5 reductions, over and above its annual obligation, to sell
2669	2669	6 tradable clean heat credits to another obligated party. The
2670	2670	7 number of tradable clean heat credits sold by an obligated
2671	2671	8 party in any year may not exceed the magnitude of the obligated
2672	2672	9 party's excess emission reductions in that year.
2673	2673	10 (220 ILCS 5/24-106 new)
2674	2674	11 Sec. 24-106. Banking of emission reductions. An obligated
2675	2675	12 party that achieves emission reductions in a given year that
2676	2676	13 are in excess of its emission reduction obligation in that
2677	2677	14 year may, in lieu of selling them to another obligated party,
2678	2678	15 bank them. Emission reductions that are banked in a given year
2679	2679	16 may be used to comply with emission reduction obligations in
2680	2680	17 any of the following 3 years. Excess emission reductions may
2681	2681	18 not be banked for more than 3 years or used as part of an
2682	2682	19 obligated party's annual compliance more than 3 years after
2683	2683	20 they were generated. No obligated party may achieve more than
2684	2684	21 20% of any annual emission reduction obligation using banked
2685	2685	22 emission reductions.
2686	2686	23 (220 ILCS 5/24-107 new)
2687	2687	24 Sec. 24-107. Equity in emission reductions.
2688	2688
2689	2689
2690	2690
2691	2691
2692	2692
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2694	2694
2695	2695
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2697	2697	SB3935 - 76 - LRB103 40383 LNS 72670 b
2698	2698	1 (a) As used in this Section:
2699	2699	2 "Equity investment eligible communities" has the meaning
2700	2700	3 given to that term in the Energy Transition Act.
2701	2701	4 "Income-qualified households" means those households whose
2702	2702	5 annual incomes are at or below 80% of the area median income.
2703	2703	6 (b) Each obligated party must achieve real emission
2704	2704	7 reductions from income-qualified households and environmental
2705	2705	8 justice communities that are at least 5 percentage points
2706	2706	9 greater than a proportional percentage of the annual gas
2707	2707	10 consumption of such customers multiplied by each obligated
2708	2708	11 party's annual emissions reduction requirements. At least half
2709	2709	12 of the emission reductions from equity investment eligible
2710	2710	13 communities shall be from measures that require capital
2711	2711	14 investments in homes, have expected lives of at least 10
2712	2712	15 years, and are estimated to lower annual energy bills.
2713	2713	16 Emission reductions in equity investment eligible communities
2714	2714	17 shall include codelivery and coordinated implementation of all
2715	2715	18 relevant programs, measures, and complementary services. This
2716	2716	19 includes, but is not limited to, pairing high efficiency
2717	2717	20 electrification measures and programs with energy efficiency,
2718	2718	21 building envelope improvements, the Illinois Solar for All
2719	2719	22 Program, energy assistance, health and safety improvements,
2720	2720	23 and federal incentives targeted to disadvantaged communities.
2721	2721	24 Emission reductions from income-qualified and environmental
2722	2722	25 justice communities, including efforts to codeliver and
2723	2723	26 coordinate other programs and services, shall be reported on
2724	2724
2725	2725
2726	2726
2727	2727
2728	2728
2729	2729	SB3935 - 76 - LRB103 40383 LNS 72670 b
2730	2730
2731	2731
2732	2732	SB3935- 77 -LRB103 40383 LNS 72670 b SB3935 - 77 - LRB103 40383 LNS 72670 b
2733	2733	SB3935 - 77 - LRB103 40383 LNS 72670 b
2734	2734	1 at least annually to the Commission. Tradable clean heat
2735	2735	2 credits cannot be used to fulfill this requirement.
2736	2736	3 (220 ILCS 5/24-108 new)
2737	2737	4 Sec. 24-108. Enforcement.
2738	2738	5 (a) The Commission shall order an obligated party that
2739	2739	6 fails to achieve its emission reduction obligation in a given
2740	2740	7 year, including required amounts from income-qualified
2741	2741	8 customers and front-line communities, to make a noncompliance
2742	2742	9 payment. The noncompliance payment shall be equal to 3 times
2743	2743	10 the estimated cost per unit of emission reduction incurred by
2744	2744	11 all obligated parties in the State for the emission reductions
2745	2745	12 the obligated parties achieved in the prior year.
2746	2746	13 (b) The Commission may waive the noncompliance payment if:
2747	2747	14 (1) it finds that the obligated party made a good
2748	2748	15 faith effort to achieve the required amount of emission
2749	2749	16 reduction and its failure to achieve the required
2750	2750	17 reduction resulted from market factors beyond its control,
2751	2751	18 that could not have reasonably been anticipated, and for
2752	2752	19 which the obligated party could not have planned; and
2753	2753	20 (2) it directs the obligated party to add the
2754	2754	21 difference between its obligated level of emission
2755	2755	22 reduction and actual emission reduction achieved to its
2756	2756	23 required emission reduction amount in subsequent years,
2757	2757	24 with the shortfall being made up in no more than 3 years.
2758	2758	25 (c) Payments received pursuant to the noncompliance
2759	2759
2760	2760
2761	2761
2762	2762
2763	2763
2764	2764	SB3935 - 77 - LRB103 40383 LNS 72670 b
2765	2765
2766	2766
2767	2767	SB3935- 78 -LRB103 40383 LNS 72670 b SB3935 - 78 - LRB103 40383 LNS 72670 b
2768	2768	SB3935 - 78 - LRB103 40383 LNS 72670 b
2769	2769	1 penalty shall be directed to the Commission.
2770	2770	2 (d) The Commission shall use any noncompliance payments to
2771	2771	3 contract with an independent third party to achieve emission
2772	2772	4 reductions in the service territory of the noncomplying
2773	2773	5 utility. The Commission shall prioritize achieving such
2774	2774	6 reductions from weatherization or electrification of
2775	2775	7 income-qualified households, to the extent that such
2776	2776	8 reductions would lower annual energy bills.
2777	2777	9 (220 ILCS 5/24-109 new)
2778	2778	10 Sec. 24-109. 2050 Heat Decarbonization Pathways Study.
2779	2779	11 (a) In order to ensure sufficient planning for achieving
2780	2780	12 this goal, the Commission shall complete a 2050 Heat
2781	2781	13 Decarbonization Pathways Study by June 1, 2025, to examine
2782	2782	14 feasible and practical pathways for investor-owned natural gas
2783	2783	15 utilities to achieve the State's decarbonization requirement
2784	2784	16 to be net zero by 2050, and the impacts of decarbonization on
2785	2785	17 customers and the electric and natural gas utilities that
2786	2786	18 serve the customers.
2787	2787	19 (b) The Commission shall host the study in collaboration
2788	2788	20 with a technical working group whose members are appointed by
2789	2789	21 the Governor and a consultant selected by the technical
2790	2790	22 working group. The Commission and technical working group
2791	2791	23 shall host a public process for stakeholder input regarding
2792	2792	24 (i) the proposed scope of the study, (ii) initial draft
2793	2793	25 assumptions for the study, (iii) draft study results, and (iv)
2794	2794
2795	2795
2796	2796
2797	2797
2798	2798
2799	2799	SB3935 - 78 - LRB103 40383 LNS 72670 b
2800	2800
2801	2801
2802	2802	SB3935- 79 -LRB103 40383 LNS 72670 b SB3935 - 79 - LRB103 40383 LNS 72670 b
2803	2803	SB3935 - 79 - LRB103 40383 LNS 72670 b
2804	2804	1 the draft study report. The technical working group shall
2805	2805	2 consist of the following members:
2806	2806	3 (1) one representative of natural gas utilities;
2807	2807	4 (2) one representative of electric utilities;
2808	2808	5 (3) the chair of the Commission, or the chair's
2809	2809	6 designee;
2810	2810	7 (4) one representative of the Office of
2811	2811	8 Decarbonization Planning within the Illinois Commerce
2812	2812	9 Commission;
2813	2813	10 (5) one representative of the Environmental Protection
2814	2814	11 Agency;
2815	2815	12 (6) one representative of an environmental advocacy
2816	2816	13 group;
2817	2817	14 (7) one representative of a labor organization;
2818	2818	15 (8) one representative of commercial and industrial
2819	2819	16 gas customers;
2820	2820	17 (9) one representative of an organization that
2821	2821	18 represents residential ratepayer advocates;
2822	2822	19 (10) one representative of a group that represents
2823	2823	20 environmental justice or front-line communities;
2824	2824	21 (11) one representative of a group that represents
2825	2825	22 low-income residents;
2826	2826	23 (12) one representative of an organization that
2827	2827	24 focuses on access to and promotion of energy efficiency;
2828	2828	25 and
2829	2829	26 (13) one climate scientist from a national laboratory
2830	2830
2831	2831
2832	2832
2833	2833
2834	2834
2835	2835	SB3935 - 79 - LRB103 40383 LNS 72670 b
2836	2836
2837	2837
2838	2838	SB3935- 80 -LRB103 40383 LNS 72670 b SB3935 - 80 - LRB103 40383 LNS 72670 b
2839	2839	SB3935 - 80 - LRB103 40383 LNS 72670 b
2840	2840	1 or institution of higher education in the State.
2841	2841	2 (c) The 2050 Heat Decarbonization Pathways Study shall
2842	2842	3 consider:
2843	2843	4 (1) future clean heating strategies for residential,
2844	2844	5 commercial, and industrial customers, including
2845	2845	6 electrification, geothermal heat and thermal networks, and
2846	2846	7 energy efficiency that would comply with each gas
2847	2847	8 utility's obligation under the heat decarbonization
2848	2848	9 standard;
2849	2849	10 (2) a comparative assessment of the marginal
2850	2850	11 greenhouse gas abatement cost curve of resources and
2851	2851	12 technologies, including electrification, that are
2852	2852	13 available for helping the utility meet its heat
2853	2853	14 decarbonization standard requirements;
2854	2854	15 (3) how a reduction in natural gas and other
2855	2855	16 utility-delivered gaseous fuels throughput will impact
2856	2856	17 customer gas and electric rates, considering various price
2857	2857	18 scenarios for electricity, natural gas, and other gaseous
2858	2858	19 fuels and reference medium and high electrification
2859	2859	20 scenarios;
2860	2860	21 (4) strategies to ensure equitable prioritization of
2861	2861	22 decarbonization measures and programs in income-qualified
2862	2862	23 and environmental justice communities while minimizing
2863	2863	24 energy transition costs on ratepayers, with an emphasis on
2864	2864	25 an accessible and affordable transition for low-income
2865	2865	26 residents, fixed-income residents, and residents within
2866	2866
2867	2867
2868	2868
2869	2869
2870	2870
2871	2871	SB3935 - 80 - LRB103 40383 LNS 72670 b
2872	2872
2873	2873
2874	2874	SB3935- 81 -LRB103 40383 LNS 72670 b SB3935 - 81 - LRB103 40383 LNS 72670 b
2875	2875	SB3935 - 81 - LRB103 40383 LNS 72670 b
2876	2876	1 equity investment eligible communities;
2877	2877	2 (5) an assessment of demand-side resource potential,
2878	2878	3 including load management, energy efficiency,
2879	2879	4 conservation, demand response, and fuel switching,
2880	2880	5 including electrification, available federal, State,
2881	2881	6 county, local, and private incentives, or financing
2882	2882	7 options related to building electrification and
2883	2883	8 efficiency;
2884	2884	9 (6) that the federal incentives analysis must include
2885	2885	10 ways that investor-owned utilities can leverage rebates
2886	2886	11 and tax incentives in the Inflation Reduction Act and
2887	2887	12 Infrastructure Investment and Jobs Act; in addition, the
2888	2888	13 assessment must include ways for the investor-owned
2889	2889	14 utilities to maximize low-income qualified households'
2890	2890	15 participation in the electrification incentive programs;
2891	2891	16 (7) the impacts of building and vehicle
2892	2892	17 electrification on the electric grid and strategies to
2893	2893	18 integrate gas and electric system planning and resource
2894	2894	19 optimization;
2895	2895	20 (8) specific natural gas end uses that may be suitable
2896	2896	21 for the use of alternative fuels, such as biomethane and
2897	2897	22 green hydrogen, and an assessment of the natural gas end
2898	2898	23 uses' commercial availability, social cost, and life cycle
2899	2899	24 emissions;
2900	2900	25 (9) a comparative evaluation of the cost of natural
2901	2901	26 gas purchasing strategies, storage options, delivery
2902	2902
2903	2903
2904	2904
2905	2905
2906	2906
2907	2907	SB3935 - 81 - LRB103 40383 LNS 72670 b
2908	2908
2909	2909
2910	2910	SB3935- 82 -LRB103 40383 LNS 72670 b SB3935 - 82 - LRB103 40383 LNS 72670 b
2911	2911	SB3935 - 82 - LRB103 40383 LNS 72670 b
2912	2912	1 resources, and improvements in demand-side resources using
2913	2913	2 a consistent method to calculate cost-effectiveness; and
2914	2914	3 (10) an evaluation of employment metrics associated
2915	2915	4 with each alternative, including a projection of gas
2916	2916	5 distribution jobs affected by a given alternative and jobs
2917	2917	6 made available through the alternative, a description of
2918	2918	7 opportunities to transition any affected gas distribution
2919	2919	8 jobs to the alternative, and an explanation of how
2920	2920	9 employment impacts associated with each alternative could
2921	2921	10 affect equity investment eligible communities. Given its
2922	2922	11 findings, the study will create a Just Transition Plan,
2923	2923	12 inclusive of funding needs, for the current gas workforce.
2924	2924	13 (d) The Chair of the Commission, or the Chair's designee,
2925	2925	14 will also serve as the Chair of the Technical Working Group.
2926	2926	15 (220 ILCS 5/24-110 new)
2927	2927	16 Sec. 24-110. Gas infrastructure planning.
2928	2928	17 (a) This Article creates the Office of Decarbonization
2929	2929	18 Planning within the Commission to manage an iterative
2930	2930	19 statewide heat decarbonization plan located within the
2931	2931	20 Commission. On a timeline concurrent with the 2050 Heat
2932	2932	21 Decarbonization Pathways Study, the Office of Decarbonization
2933	2933	22 Planning shall adopt rules for implementing the heat
2934	2934	23 decarbonization plans.
2935	2935	24 (b) As used in this Section:
2936	2936	25 "Environmental justice communities" has the meaning given
2937	2937
2938	2938
2939	2939
2940	2940
2941	2941
2942	2942	SB3935 - 82 - LRB103 40383 LNS 72670 b
2943	2943
2944	2944
2945	2945	SB3935- 83 -LRB103 40383 LNS 72670 b SB3935 - 83 - LRB103 40383 LNS 72670 b
2946	2946	SB3935 - 83 - LRB103 40383 LNS 72670 b
2947	2947	1 to that term in the Illinois Power Agency Act.
2948	2948	2 "Lowest reasonable cost" means the least-cost, least-risk
2949	2949	3 mix of demand-side, supply-side, and electrification resources
2950	2950	4 determined through a detailed and consistent analysis of a
2951	2951	5 wide range of commercially available sources. At a minimum,
2952	2952	6 this analysis must consider resource costs, resource
2953	2953	7 availability, market-volatility risks, the risks imposed on
2954	2954	8 ratepayers, resource effect on system operations, public
2955	2955	9 policies regarding resource preferences, the cost of risks
2956	2956	10 associated with environmental effects, including emissions of
2957	2957	11 carbon dioxide, the ability to scale to meet 2050 goals, air
2958	2958	12 pollution and resulting public health impacts, equity impacts,
2959	2959	13 and the need for security of supply.
2960	2960	14 "Planned project" means any programmatic expense or
2961	2961	15 related group of programmatic expenses with a defined scope of
2962	2962	16 work and associated cost estimate that exceeds $1,000,000 in
2963	2963	17 2020 dollars or $500,000 in 2020 dollars for gas utilities
2964	2964	18 with less than 50,000 full service customers, as adjusted
2965	2965	19 annually for inflation.
2966	2966	20 "Resources" means both demand-side and supply-side
2967	2967	21 resources, including, but not limited to, natural gas,
2968	2968	22 biomethane, green hydrogen for industrial application,
2969	2969	23 conservation, energy efficiency, demand response, and
2970	2970	24 electrification.
2971	2971	25 (c) Each natural gas utility regulated by the Commission
2972	2972	26 has the responsibility to meet system demand and public policy
2973	2973
2974	2974
2975	2975
2976	2976
2977	2977
2978	2978	SB3935 - 83 - LRB103 40383 LNS 72670 b
2979	2979
2980	2980
2981	2981	SB3935- 84 -LRB103 40383 LNS 72670 b SB3935 - 84 - LRB103 40383 LNS 72670 b
2982	2982	SB3935 - 84 - LRB103 40383 LNS 72670 b
2983	2983	1 requirements, including the State's heat decarbonization
2984	2984	2 standard, with the lowest reasonable cost and most feasible
2985	2985	3 mix of resources. In furtherance of that responsibility, each
2986	2986	4 natural gas utility must develop a gas infrastructure plan for
2987	2987	5 meeting the utility's heat decarbonization standard, including
2988	2988	6 5-year interim milestones from 2025 until 2050. The gas
2989	2989	7 infrastructure plan must take into account the findings of the
2990	2990	8 2050 Heat Decarbonization Pathways Study.
2991	2991	9 (d) Natural gas utilities shall file biennial gas
2992	2992	10 infrastructure plans that create alignment between gas utility
2993	2993	11 distribution system investments and the utility's heat
2994	2994	12 decarbonization standard obligations at lowest reasonable cost
2995	2995	13 and that consider nonpipeline infrastructure projects that
2996	2996	14 minimize costs over the long term.
2997	2997	15 (e) Before the filing of each biennial gas infrastructure
2998	2998	16 plan, the Office of Decarbonization Planning shall contract
2999	2999	17 for gas demand forecasts for each regulated gas utility in the
3000	3000	18 State from an independent party. Gas utilities must reasonably
3001	3001	19 provide accurate and timely system data to the independent
3002	3002	20 contractor selected to conduct the forecasts. For each
3003	3003	21 regulated gas utility in the State, the third party must
3004	3004	22 produce forecasts for each customer class that consider slow,
3005	3005	23 medium, and rapid acceleration of residential, commercial, and
3006	3006	24 industrial electrification of the end uses that rely upon the
3007	3007	25 direct combustion of natural gas in buildings. The forecasts
3008	3008	26 must include, to the extent possible, the effects of updated
3009	3009
3010	3010
3011	3011
3012	3012
3013	3013
3014	3014	SB3935 - 84 - LRB103 40383 LNS 72670 b
3015	3015
3016	3016
3017	3017	SB3935- 85 -LRB103 40383 LNS 72670 b SB3935 - 85 - LRB103 40383 LNS 72670 b
3018	3018	SB3935 - 85 - LRB103 40383 LNS 72670 b
3019	3019	1 State and local building codes, changes to the number of gas
3020	3020	2 utility customers, consumer responses to building
3021	3021	3 electrification programs or incentives offered within a gas
3022	3022	4 utility's service territory, the price elasticity of gas
3023	3023	5 demand if rates increase due to reduced gas throughput and the
3024	3024	6 impacts of commodity prices, and any other criteria as
3025	3025	7 stipulated by the Commission. The forecasts shall be due to
3026	3026	8 the Commission and the gas utilities at least 8 months prior to
3027	3027	9 the filing of a gas infrastructure plan.
3028	3028	10 (f) A gas infrastructure plan must:
3029	3029	11 (1) cover the 20 years immediately following the
3030	3030	12 approval of the plan with a 5-year action plan of
3031	3031	13 investments;
3032	3032	14 (2) provide the estimated total cost and annual
3033	3033	15 incremental revenue requirements of the proposed action
3034	3034	16 plan, assuming both conventional depreciation and
3035	3035	17 accelerated depreciation, as applicable;
3036	3036	18 (3) use the various gas demand forecasts provided to
3037	3037	19 it under this article and include a range of possible
3038	3038	20 future scenarios and input sensitivities for the purpose
3039	3039	21 of testing the robustness of the utility's portfolio of
3040	3040	22 planned projects under various parameters;
3041	3041	23 (4) take into account the findings of the 2050 Heat
3042	3042	24 Decarbonization Pathways Study;
3043	3043	25 (5) demonstrate that the utility's infrastructure
3044	3044	26 investment plans align with obligations under the heat
3045	3045
3046	3046
3047	3047
3048	3048
3049	3049
3050	3050	SB3935 - 85 - LRB103 40383 LNS 72670 b
3051	3051
3052	3052
3053	3053	SB3935- 86 -LRB103 40383 LNS 72670 b SB3935 - 86 - LRB103 40383 LNS 72670 b
3054	3054	SB3935 - 86 - LRB103 40383 LNS 72670 b
3055	3055	1 decarbonization standard;
3056	3056	2 (6) include a list of all proposed system expenditures
3057	3057	3 and investments, including an analysis of infrastructure
3058	3058	4 needs and detailed information on all planned projects
3059	3059	5 within the action plan;
3060	3060	6 (7) include the results of nonpipeline alternative
3061	3061	7 analyses conducted for all planned projects not necessary
3062	3062	8 to mitigate a near-term safety or reliability risk subject
3063	3063	9 to rules by the Commission that include, but are not
3064	3064	10 limited to:
3065	3065	11 (A) a consideration of both supply and demand-side
3066	3066	12 alternatives to traditional capital investments,
3067	3067	13 including gas demand response and electrification; and
3068	3068	14 (B) a cost-benefit analysis of the various options
3069	3069	15 that consider non-energy benefits and the societal
3070	3070	16 value, including health benefits, of reduced carbon
3071	3071	17 emissions and surface-level pollutants, particularly
3072	3072	18 in equity investment eligible communities;
3073	3073	19 (8) minimize rate impacts on customers, particularly
3074	3074	20 low-income households and households within equity
3075	3075	21 investment eligible communities;
3076	3076	22 (9) describe the methodology, criteria, and
3077	3077	23 assumptions used to develop the plan;
3078	3078	24 (10) include one or more system maps indicating
3079	3079	25 locations of individual planned projects, pressure
3080	3080	26 districts served by the individual project, locations of
3081	3081
3082	3082
3083	3083
3084	3084
3085	3085
3086	3086	SB3935 - 86 - LRB103 40383 LNS 72670 b
3087	3087
3088	3088
3089	3089	SB3935- 87 -LRB103 40383 LNS 72670 b SB3935 - 87 - LRB103 40383 LNS 72670 b
3090	3090	SB3935 - 87 - LRB103 40383 LNS 72670 b
3091	3091	1 equity investment eligible communities, and any other
3092	3092	2 information as required by the Commission;
3093	3093	3 (11) provide a summary of stakeholder participation
3094	3094	4 and input from a public stakeholder process, and an
3095	3095	5 explanation of how input was incorporated into the plan,
3096	3096	6 including for all projects located within equity
3097	3097	7 investment eligible communities, a description of its
3098	3098	8 outreach to members of that community and findings from
3099	3099	9 those efforts; and
3100	3100	10 (12) requires the utility, to the extent that the
3101	3101	11 utility assumes the use of alternative fuels, such as
3102	3102	12 biomethane or green hydrogen, to meet its obligations
3103	3103	13 under the heat decarbonization standard, to demonstrate a
3104	3104	14 plan to procure firm supply and cost-effectiveness as
3105	3105	15 compared to nonfuel alternatives, inclusive of the costs
3106	3106	16 to retrofit all public and private infrastructure to
3107	3107	17 accommodate the fuels; green hydrogen may only be used for
3108	3108	18 industrial applications; hydrogen blending with methane
3109	3109	19 shall not be part of decarbonization plans.
3110	3110	20 (g) Not later than 12 months before the due date of a plan,
3111	3111	21 the utility must provide a work plan for the Commission to
3112	3112	22 review. The work plan must outline the content of the resource
3113	3113	23 plan to be developed by the utility, the method for assessing
3114	3114	24 potential resources, and the timing and extent of public
3115	3115	25 participation. In addition, the Commission will hear comments
3116	3116	26 on the plan at a minimum of 3 public hearings, held at times
3117	3117
3118	3118
3119	3119
3120	3120
3121	3121
3122	3122	SB3935 - 87 - LRB103 40383 LNS 72670 b
3123	3123
3124	3124
3125	3125	SB3935- 88 -LRB103 40383 LNS 72670 b SB3935 - 88 - LRB103 40383 LNS 72670 b
3126	3126	SB3935 - 88 - LRB103 40383 LNS 72670 b
3127	3127	1 and locations accessible and convenient to most people,
3128	3128	2 including at least one in an equity investment eligible
3129	3129	3 community, which are scheduled after the utility submits its
3130	3130	4 plan for Commission review.
3131	3131	5 (h) No later than July 1, 2025, gas utilities in this State
3132	3132	6 must file the first gas infrastructure plan application for
3133	3133	7 approval. The Commission may approve, deny, or require
3134	3134	8 modifications to the plan. Once approved, the plan must be
3135	3135	9 incorporated into the utility's next general rate case using
3136	3136	10 the approved ratemaking treatments. Deviations based on
3137	3137	11 unforeseen circumstances must be justified and approved by the
3138	3138	12 Commission.
3139	3139	13 (i) The Commission shall adopt new rules, amend existing
3140	3140	14 rules, as necessary, and dedicate sufficient resources to
3141	3141	15 implement this Section.
3142	3142	16 (220 ILCS 5/24-111 new)
3143	3143	17 Sec. 24-111. Study on gas utility financial incentive
3144	3144	18 reform.
3145	3145	19 (a) The General Assembly finds that:
3146	3146	20 (1) Improving the alignment of gas utility customer
3147	3147	21 interests, State policy, and company interests is critical
3148	3148	22 to ensuring the expected decline in the use of natural gas
3149	3149	23 is done efficiently, safely, cost-effectively, and
3150	3150	24 transparently.
3151	3151	25 (2) There is urgency around addressing increasing
3152	3152
3153	3153
3154	3154
3155	3155
3156	3156
3157	3157	SB3935 - 88 - LRB103 40383 LNS 72670 b
3158	3158
3159	3159
3160	3160	SB3935- 89 -LRB103 40383 LNS 72670 b SB3935 - 89 - LRB103 40383 LNS 72670 b
3161	3161	SB3935 - 89 - LRB103 40383 LNS 72670 b
3162	3162	1 threats from climate change and assisting communities that
3163	3163	2 have borne disproportionate impacts from climate change,
3164	3164	3 including air pollution, greenhouse gas emissions, and
3165	3165	4 energy burdens. Addressing this problem requires changes
3166	3166	5 to the energy used to power homes and businesses, and
3167	3167	6 changes to the gas utility business model under which
3168	3168	7 utilities in the State have traditionally functioned.
3169	3169	8 (3) Gas utility ratepayers may face upwardly spiraling
3170	3170	9 bills if steps are not taken to contain costs and
3171	3171	10 strategically prune parts of the gas distribution network.
3172	3172	11 (4) There is a need to encourage gas utilities to
3173	3173	12 innovate and find new lines of business to maintain
3174	3174	13 financial health as their main business, the provision of
3175	3175	14 fossil natural gas, winds down.
3176	3176	15 (5) The current regulatory framework has encouraged
3177	3177	16 infrastructure programs that have been plagued by
3178	3178	17 excessive cost overruns and delays.
3179	3179	18 (6) Discussions of performance incentive mechanisms
3180	3180	19 must always take into account the affordability of
3181	3181	20 customer rates and bills via stakeholder input.
3182	3182	21 The General Assembly, therefore, directs the Commission to
3183	3183	22 reform the gas utility financial incentives structure to
3184	3184	23 further specified goals and objectives related to the
3185	3185	24 provision of clean, affordable heat and the advancement of an
3186	3186	25 equitable distribution of benefits and reduction in harms in
3187	3187	26 equity investment eligible communities and economically
3188	3188
3189	3189
3190	3190
3191	3191
3192	3192
3193	3193	SB3935 - 89 - LRB103 40383 LNS 72670 b
3194	3194
3195	3195
3196	3196	SB3935- 90 -LRB103 40383 LNS 72670 b SB3935 - 90 - LRB103 40383 LNS 72670 b
3197	3197	SB3935 - 90 - LRB103 40383 LNS 72670 b
3198	3198	1 disadvantaged communities.
3199	3199	2 (b) The Commission shall open an investigation to consider
3200	3200	3 performance-based ratemaking tools and other financial
3201	3201	4 mechanisms to advance the goals of affordability, equity,
3202	3202	5 pollution reduction, energy system flexibility and
3203	3203	6 electrification, reliability, safety, customer experience,
3204	3204	7 cost-effectiveness, and the financial health of gas utilities
3205	3205	8 as the gas utilities scale down their core business of
3206	3206	9 delivering fuel-based energy through the distribution network.
3207	3207	10 The investigation shall consider the following mechanisms, in
3208	3208	11 addition to any others that the Commission or stakeholders
3209	3209	12 deem necessary:
3210	3210	13 (1) accelerated and shortened depreciation schedules;
3211	3211	14 (2) performance metrics and benchmarking;
3212	3212	15 (3) revenue decoupling;
3213	3213	16 (4) cost-recovery options for nonpipeline
3214	3214	17 alternatives;
3215	3215	18 (5) electrification;
3216	3216	19 (6) networked geothermal systems;
3217	3217	20 (7) securitization;
3218	3218	21 (8) fuel-cost sharing;
3219	3219	22 (9) multiyear rate plans;
3220	3220	23 (10) performance incentive mechanisms;
3221	3221	24 (11) the equalization of capital and operational
3222	3222	25 expenditures;
3223	3223	26 (12) return on equity levels for different investment
3224	3224
3225	3225
3226	3226
3227	3227
3228	3228
3229	3229	SB3935 - 90 - LRB103 40383 LNS 72670 b
3230	3230
3231	3231
3232	3232	SB3935- 91 -LRB103 40383 LNS 72670 b SB3935 - 91 - LRB103 40383 LNS 72670 b
3233	3233	SB3935 - 91 - LRB103 40383 LNS 72670 b
3234	3234	1 types;
3235	3235	2 (13) rate designs at the electric and gas nexus;
3236	3236	3 (14) low-income rates;
3237	3237	4 (15) luxury gas rates; and
3238	3238	5 (16) intersectoral cost recovery.
3239	3239	6 (c) The Commission must create a framework to evaluate
3240	3240	7 each mechanism on its own and as part of a set of mechanisms to
3241	3241	8 achieve the policy objectives determined by the General
3242	3242	9 Assembly, stakeholders, and the general public after a minimum
3243	3243	10 of 3 public hearings held at times and locations accessible
3244	3244	11 and convenient to most people, including at least one in an
3245	3245	12 equity investment eligible community.
3246	3246	13 (d) The investigation shall consist of a series of
3247	3247	14 workshops facilitated by an independent consultant that
3248	3248	15 encourages representation from diverse stakeholders, ensures
3249	3249	16 equitable opportunities for participation, and does not
3250	3250	17 require formal intervention or representation by an attorney.
3251	3251	18 (e) Any recommendations at the conclusion of the process
3252	3252	19 must be shared with the General Assembly, and those
3253	3253	20 recommendations already within the Commission's existing
3254	3254	21 authorities must be adopted in the next applicable general
3255	3255	22 rate case or relevant filing.
3256	3256	23 (220 ILCS 5/24-112 new)
3257	3257	24 Sec. 24-112. Reporting requirements.
3258	3258	25 (a) Each gas utility in the State must report data to the
3259	3259
3260	3260
3261	3261
3262	3262
3263	3263
3264	3264	SB3935 - 91 - LRB103 40383 LNS 72670 b
3265	3265
3266	3266
3267	3267	SB3935- 92 -LRB103 40383 LNS 72670 b SB3935 - 92 - LRB103 40383 LNS 72670 b
3268	3268	SB3935 - 92 - LRB103 40383 LNS 72670 b
3269	3269	1 Commission in January and July of each year that satisfy
3270	3270	2 metrics that are set by the Commission to assess, on a system,
3271	3271	3 segment, and neighborhood basis, the level of system safety
3272	3272	4 and risk. The metrics must include, but are not limited to, the
3273	3273	5 following:
3274	3274	6 (1) the overall average leak rate of replaced and
3275	3275	7 to-be-replaced mains and leak-prone pipes;
3276	3276	8 (2) the overall average leak rate using only
3277	3277	9 leak-prone pipe and current leaks;
3278	3278	10 (3) the neighborhood average leak rate using only
3279	3279	11 remaining leak-prone pipes and current leaks; and
3280	3280	12 (4) the neighborhood historic average leak rate using
3281	3281	13 leaks on leak-prone pipes for the past 2 years, on a
3282	3282	14 rolling basis, normalized for weather, and incorporating
3283	3283	15 all class 2 leaks except third-party damage.
3284	3284	16 (b) Gas utilities must include in the report an assessment
3285	3285	17 of whether the actions taken in the prior 3 years produced the
3286	3286	18 best value, in terms of risk reduction, for the amounts
3287	3287	19 expended and a prediction of how planned projects will change
3288	3288	20 risk levels on a neighborhood, segment, and system basis. The
3289	3289	21 report filed by Peoples Gas Light and Coke Company must also
3290	3290	22 include updates on steps taken to implement the
3291	3291	23 recommendations of the Final Report on Phase One of an
3292	3292	24 Investigation of Peoples Gas Light and Coke Company's AMRP.
3293	3293	25 The Commission may require any other gas utility to adopt new
3294	3294	26 and revised practices and processes by Peoples Gas Light and
3295	3295
3296	3296
3297	3297
3298	3298
3299	3299
3300	3300	SB3935 - 92 - LRB103 40383 LNS 72670 b
3301	3301
3302	3302
3303	3303	SB3935- 93 -LRB103 40383 LNS 72670 b SB3935 - 93 - LRB103 40383 LNS 72670 b
3304	3304	SB3935 - 93 - LRB103 40383 LNS 72670 b
3305	3305	1 Coke Company to ensure consistency across utilities.
3306	3306	2 (c) In its review of the data and metrics provided, the
3307	3307	3 Commission may order adjustments in infrastructure replacement
3308	3308	4 plans as it deems necessary to meet an acceptable level of risk
3309	3309	5 at appropriate cost.
3310	3310	6 (220 ILCS 5/Art. XXV heading new)
3311	3311	7 ARTICLE XXV. STATE NAVIGATOR PROGRAM LAW
3312	3312	8 (220 ILCS 5/25-101 new)
3313	3313	9 Sec. 25-101. Short title. This Article may be cited as the
3314	3314	10 State Navigator Program Law. References in this Article to
3315	3315	11 "this Act" mean this Article.
3316	3316	12 (220 ILCS 5/25-102 new)
3317	3317	13 Sec. 25-102. Intent. The General Assembly finds that
3318	3318	14 improving the energy efficiency of, and reducing the
3319	3319	15 greenhouse gases from, residential buildings are critical to
3320	3320	16 meeting the State's adopted climate goals in Public Act
3321	3321	17 102-662.
3322	3322	18 The General Assembly recognizes that making information
3323	3323	19 about energy efficiency and weatherization programs,
3324	3324	20 electrification services, skilled contractors, and federal and
3325	3325	21 State electrification incentives available to State residents
3326	3326	22 will assist obligated parties to comply with the Clean Heat
3327	3327	23 Standard set out in Article XXIII. Further, the General
3328	3328
3329	3329
3330	3330
3331	3331
3332	3332
3333	3333	SB3935 - 93 - LRB103 40383 LNS 72670 b
3334	3334
3335	3335
3336	3336	SB3935- 94 -LRB103 40383 LNS 72670 b SB3935 - 94 - LRB103 40383 LNS 72670 b
3337	3337	SB3935 - 94 - LRB103 40383 LNS 72670 b
3338	3338	1 Assembly recognizes that establishing a comprehensive
3339	3339	2 statewide navigator program is essential to ensuring equitable
3340	3340	3 access to electrification and energy efficient services. This
3341	3341	4 program requires the Administrator to help State residents
3342	3342	5 combine local, State, federal, and utility services related to
3343	3343	6 electrification, energy efficiency, and the reduction of
3344	3344	7 energy burdens to maximize electrification and energy
3345	3345	8 efficiency in this State, and fill gaps as needed.
3346	3346	9 (220 ILCS 5/25-103 new)
3347	3347	10 Sec. 25-103. Definitions. As used in this Article:
3348	3348	11 "Administrator" means an entity, including, but not
3349	3349	12 limited to, a nonprofit corporation or community-based
3350	3350	13 organization. "Administrator" does not include an energy
3351	3351	14 utility.
3352	3352	15 "Customers" means residents, businesses, and building
3353	3353	16 owners.
3354	3354	17 "Department" means the Department of Commerce and Economic
3355	3355	18 Opportunity.
3356	3356	19 "Electrification services" includes energy audits,
3357	3357	20 assistance converting to on-site renewable energy, installing
3358	3358	21 electric heat pumps and heat pump water heaters, electric
3359	3359	22 appliance replacement, assistance with paperwork, arranging
3360	3360	23 for financing, energy efficiency, weatherization, health and
3361	3361	24 safety, and any related services and work.
3362	3362	25 "Equity investment eligible communities" has the meaning
3363	3363
3364	3364
3365	3365
3366	3366
3367	3367
3368	3368	SB3935 - 94 - LRB103 40383 LNS 72670 b
3369	3369
3370	3370
3371	3371	SB3935- 95 -LRB103 40383 LNS 72670 b SB3935 - 95 - LRB103 40383 LNS 72670 b
3372	3372	SB3935 - 95 - LRB103 40383 LNS 72670 b
3373	3373	1 given to that term in Section 5-5 of the Energy Transition Act.
3374	3374	2 "Income-qualified households" means those whose annual
3375	3375	3 incomes are at or below 80% of area median income.
3376	3376	4 "Navigator Working Group" means representatives appointed
3377	3377	5 by the Department who represent members from either the
3378	3378	6 electrician trades, construction industry, community
3379	3379	7 organizations that work in energy burdened communities,
3380	3380	8 community organizations who have experience with
3381	3381	9 weatherization programs, members from equity investment
3382	3382	10 eligible communities or the Illinois Commerce Commission or
3383	3383	11 staff, and electric utilities and obligated parties as
3384	3384	12 indicated in Article XXIII.
3385	3385	13 (220 ILCS 5/25-104 new)
3386	3386	14 Sec. 25-104. Creation of State navigator program.
3387	3387	15 (a) The Department may establish and oversee a statewide
3388	3388	16 building energy upgrade navigator program. The purpose of the
3389	3389	17 navigator program is to provide a statewide resource to assist
3390	3390	18 building owners and building renters with accessing
3391	3391	19 electrification services and energy efficiency services and
3392	3392	20 programs, funding, and any other assistance that will result
3393	3393	21 in aiding obligated parties' compliance with the Clean Heat
3394	3394	22 Standard in Article XXIII. This includes, but is not limited
3395	3395	23 to, utility programs, the weatherization assistance program,
3396	3396	24 federal funding, rebates, health and safety funding, and other
3397	3397	25 State and local funding.
3398	3398
3399	3399
3400	3400
3401	3401
3402	3402
3403	3403	SB3935 - 95 - LRB103 40383 LNS 72670 b
3404	3404
3405	3405
3406	3406	SB3935- 96 -LRB103 40383 LNS 72670 b SB3935 - 96 - LRB103 40383 LNS 72670 b
3407	3407	SB3935 - 96 - LRB103 40383 LNS 72670 b
3408	3408	1 (b) The Department must coordinate and collaborate with
3409	3409	2 the navigator working group on the design, administration, and
3410	3410	3 implementation of the navigator program.
3411	3411	4 (c) The Department must ensure that all State residents
3412	3412	5 have equitable access to the navigator program.
3413	3413	6 (d) The Department may consult with other programs,
3414	3414	7 entities, and stakeholders as the Department determines to be
3415	3415	8 appropriate on the design, administration, and implementation
3416	3416	9 of the navigator program.
3417	3417	10 (e) Third-Party Administrator.
3418	3418	11 (1) The Department may contract out this program to
3419	3419	12 the Administrator. Subject to the following requirements:
3420	3420	13 (A) The Administrator must be selected through a
3421	3421	14 competitive process.
3422	3422	15 (B) The Administrator must have experience with
3423	3423	16 running statewide programs related to energy
3424	3424	17 efficiency, electrification services, or
3425	3425	18 weatherization programs.
3426	3426	19 (C) The Administrator must have experience working
3427	3427	20 with multifamily building owners and renters.
3428	3428	21 (D) The Administrator must have experience
3429	3429	22 assisting people with low incomes or energy burdened
3430	3430	23 households.
3431	3431	24 (E) The Administrator must have experience running
3432	3432	25 programs in both urban and rural parts of the State,
3433	3433	26 including covering a range of geographic and community
3434	3434
3435	3435
3436	3436
3437	3437
3438	3438
3439	3439	SB3935 - 96 - LRB103 40383 LNS 72670 b
3440	3440
3441	3441
3442	3442	SB3935- 97 -LRB103 40383 LNS 72670 b SB3935 - 97 - LRB103 40383 LNS 72670 b
3443	3443	SB3935 - 97 - LRB103 40383 LNS 72670 b
3444	3444	1 diversity.
3445	3445	2 (2) If the Department decides to hire an
3446	3446	3 Administrator, they must enter into a contract within a
3447	3447	4 year of the effective date of this amendatory Act of the
3448	3448	5 103rd General Assembly.
3449	3449	6 (3) If the Department decides to hire an
3450	3450	7 Administrator, the contract expires after 4 years. After 4
3451	3451	8 years, the Department can renew the contract or select a
3452	3452	9 different Administrator. If the Administrator is not
3453	3453	10 meeting the requirements of the program and its
3454	3454	11 participants, the contract may be terminated early, and a
3455	3455	12 new Administrator may be hired.
3456	3456	13 (4) The Administrator shall have the same
3457	3457	14 responsibilities as the Department in creating,
3458	3458	15 overseeing, and implementing the programs in the navigator
3459	3459	16 program.
3460	3460	17 (f) The Department or Administrator of the naviga
3461	3461	tor
3462	3462	18 program must:
3463	3463	19 (1) provide outreach and deliver energy services to:
3464	3464	20 (A) owner occupied and rental residences; and
3465	3465	21 (B) single-family and multifamily dwellings;
3466	3466	22 (2) provide coverage for all geographic regions in the
3467	3467	23 State;
3468	3468	24 (3) support energy efficient and emissions reductions
3469	3469	25 alternatives for all types of fuel used in buildings; the
3470	3470	26 Department or Administrator shall ensure funding is used
3471	3471
3472	3472
3473	3473
3474	3474
3475	3475
3476	3476	SB3935 - 97 - LRB103 40383 LNS 72670 b
3477	3477
3478	3478
3479	3479	SB3935- 98 -LRB103 40383 LNS 72670 b SB3935 - 98 - LRB103 40383 LNS 72670 b
3480	3480	SB3935 - 98 - LRB103 40383 LNS 72670 b
3481	3481	1 for projects that include electrification and energy
3482	3482	2 efficiency work, and any related health and safety,
3483	3483	3 renewable energy, and whole building needs; funding shall
3484	3484	4 not be used for the installation of new natural gas or
3485	3485	5 other fossil fuel equipment;
3486	3486	6 (4) create strategies to ensure that the navigator
3487	3487	7 program prioritizes services in equity investment eligible
3488	3488	8 communities, one of which must include dedicating at least
3489	3489	9 40% of the total funding for the navigator program to
3490	3490	10 deploy electrification services, energy efficiency
3491	3491	11 measures, renewable energy, health and safety upgrades,
3492	3492	12 and related upgrades in equity investment eligible
3493	3493	13 communities, through;
3494	3494	14 (A) weatherization services, including air sealing
3495	3495	15 and insulation;
3496	3496	16 (B) health and safety improvements;
3497	3497	17 (C) purchase and installation of efficient
3498	3498	18 electric equipment;
3499	3499	19 (D) energy efficiency improvements, as needed;
3500	3500	20 (E) health and safety improvements that aid in
3501	3501	21 energy conservation;
3502	3502	22 (F) weatherization services;
3503	3503	23 (G) solar, storage, and renewable energy, as
3504	3504	24 needed; and
3505	3505	25 (G) workforce development programs;
3506	3506	26 (5) create a strategy for how the navigator program
3507	3507
3508	3508
3509	3509
3510	3510
3511	3511
3512	3512	SB3935 - 98 - LRB103 40383 LNS 72670 b
3513	3513
3514	3514
3515	3515	SB3935- 99 -LRB103 40383 LNS 72670 b SB3935 - 99 - LRB103 40383 LNS 72670 b
3516	3516	SB3935 - 99 - LRB103 40383 LNS 72670 b
3517	3517	1 will equitably assist residents in accessing rebates and
3518	3518	2 incentives in the federal Inflation Reduction Act;
3519	3519	3 (6) create a strategy for how the navigator program
3520	3520	4 will assist customers in accessing State funding
3521	3521	5 opportunities available to access electrification
3522	3522	6 services;
3523	3523	7 (7) create a strategy to stack funding from all
3524	3524	8 available incentives and tax rebates together with the
3525	3525	9 goal of creating a 'one-stop shop' for all weatherization,
3526	3526	10 energy efficiency and electrification services;
3527	3527	11 (8) support the integrated implementation of all
3528	3528	12 relevant clean building programs funded in the State
3529	3529	13 budget, including, but not limited to:
3530	3530	14 (A) the Low Income Home Energy Assistance Program;
3531	3531	15 and
3532	3532	16 (B) the Illinois Home Weatherization Assistance
3533	3533	17 Program; and
3534	3534	18 (9) maintain a recommended contractor list.
3535	3535	19 (220 ILCS 5/25-105 new)
3536	3536	20 Sec. 25-105. Education materials and outreach. The
3537	3537	21 Department or Administrator shall:
3538	3538	22 (1) create educational materials, which must include
3539	3539	23 information about all relevant funds and financial
3540	3540	24 assistance available from federal, State, local, and
3541	3541	25 energy utility programs, including, but not limited to,
3542	3542
3543	3543
3544	3544
3545	3545
3546	3546
3547	3547	SB3935 - 99 - LRB103 40383 LNS 72670 b
3548	3548
3549	3549
3550	3550	SB3935- 100 -LRB103 40383 LNS 72670 b SB3935 - 100 - LRB103 40383 LNS 72670 b
3551	3551	SB3935 - 100 - LRB103 40383 LNS 72670 b
3552	3552	1 incentives, rebates, tax credits, grants, and loan
3553	3553	2 programs;
3554	3554	3 (2) contract with one or more community-based
3555	3555	4 organizations that demonstrate past success in working
3556	3556	5 with equity investment eligible communities in order to
3557	3557	6 create and distribute educational materials specifically
3558	3558	7 targeted at equity investment eligible communities;
3559	3559	8 (3) support and connect community-based organizations
3560	3560	9 in their region to training programs in areas of
3561	3561	10 electrification, energy efficiency, building envelope, and
3562	3562	11 installation technical assistance, and other relevant
3563	3563	12 areas; and
3564	3564	13 (4) ensure the education and outreach work is
3565	3565	14 coordinated with other State energy efficiency,
3566	3566	15 weatherization, electrification, and related programs and
3567	3567	16 providers.
3568	3568	17 (220 ILCS 5/25-106 new)
3569	3569	18 Sec. 25-106. Delivered services for equity investment
3570	3570	19 eligible communities.
3571	3571	20 (a) The Department or Administrator must implement the
3572	3572	21 navigator program for income-qualified households, which must
3573	3573	22 include support navigating to existing programs or directly
3574	3574	23 providing and filling gaps related to:
3575	3575	24 (1) energy audits to provide recommendations to
3576	3576	25 customers on a wide range of cost-effective energy and
3577	3577
3578	3578
3579	3579
3580	3580
3581	3581
3582	3582	SB3935 - 100 - LRB103 40383 LNS 72670 b
3583	3583
3584	3584
3585	3585	SB3935- 101 -LRB103 40383 LNS 72670 b SB3935 - 101 - LRB103 40383 LNS 72670 b
3586	3586	SB3935 - 101 - LRB103 40383 LNS 72670 b
3587	3587	1 health improvements;
3588	3588	2 (2) weatherization and energy efficiency services,
3589	3589	3 including, but not limited to,
3590	3590	adding insulation, sealing
3591	3591	4 cracks, and making other changes that reduce heat loss,
3592	3592	5 save money on heating bills, and improve the health and
3593	3593	6 safety of buildings;
3594	3594	7 (3) appliance upgrades;
3595	3595	8 (4) electrification services, including installation
3596	3596	9 of air-sourced heat pumps, heat pump hot water heaters,
3597	3597	10 cooling, and electric panel upgrades and wiring;
3598	3598	11 (5) accessing qualified energy contractors; and
3599	3599	12 (6) securing financing.
3600	3600	13 (b) Nothing in this Section shall preclude the
3601	3601	14 implementation of measures that, in addition to producing
3602	3602	15 energy savings, increase electric load by adding building
3603	3603	16 cooling systems where none existed before.
3604	3604	17 Section 99. Effective date. This Act takes effect upon
3605	3605	18 becoming law.
3606	3606	SB3935- 102 -LRB103 40383 LNS 72670 b 1 INDEX 2 Statutes amended in order of appearance 3 20 ILCS 730/5-254 220 ILCS 5/1-102from Ch. 111 2/3, par. 1-1025 220 ILCS 5/1-103 new6 220 ILCS 5/3-127 new7 220 ILCS 5/8-101from Ch. 111 2/3, par. 8-1018 220 ILCS 5/8-104B new9 220 ILCS 5/9-228.5 new10 220 ILCS 5/9-22911 220 ILCS 5/9-235 new12 220 ILCS 5/9-241from Ch. 111 2/3, par. 9-24113 220 ILCS 5/9-254 new14 220 ILCS 5/9-255 new15 220 ILCS 5/16-111.1016 220 ILCS 5/Art. XXIII 17 heading new18 220 ILCS 5/23-101 new19 220 ILCS 5/23-102 new20 220 ILCS 5/23-103 new21 220 ILCS 5/23-104 new22 220 ILCS 5/23-105 new23 220 ILCS 5/23-106 new24 220 ILCS 5/23-107 new25 220 ILCS 5/23-108 new SB3935- 103 -LRB103 40383 LNS 72670 b SB3935- 102 -LRB103 40383 LNS 72670 b SB3935 - 102 - LRB103 40383 LNS 72670 b 1 INDEX 2 Statutes amended in order of appearance 3 20 ILCS 730/5-25 4 220 ILCS 5/1-102 from Ch. 111 2/3, par. 1-102 5 220 ILCS 5/1-103 new 6 220 ILCS 5/3-127 new 7 220 ILCS 5/8-101 from Ch. 111 2/3, par. 8-101 8 220 ILCS 5/8-104B new 9 220 ILCS 5/9-228.5 new 10 220 ILCS 5/9-229 11 220 ILCS 5/9-235 new 12 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241 13 220 ILCS 5/9-254 new 14 220 ILCS 5/9-255 new 15 220 ILCS 5/16-111.10 16 220 ILCS 5/Art. XXIII 17 heading new 18 220 ILCS 5/23-101 new 19 220 ILCS 5/23-102 new 20 220 ILCS 5/23-103 new 21 220 ILCS 5/23-104 new 22 220 ILCS 5/23-105 new 23 220 ILCS 5/23-106 new 24 220 ILCS 5/23-107 new 25 220 ILCS 5/23-108 new SB3935- 103 -LRB103 40383 LNS 72670 b SB3935 - 103 - LRB103 40383 LNS 72670 b
3607	3607	SB3935- 102 -LRB103 40383 LNS 72670 b SB3935 - 102 - LRB103 40383 LNS 72670 b
3608	3608	SB3935 - 102 - LRB103 40383 LNS 72670 b
3609	3609	1 INDEX
3610	3610	2 Statutes amended in order of appearance
3611	3611	3 20 ILCS 730/5-25
3612	3612	4 220 ILCS 5/1-102 from Ch. 111 2/3, par. 1-102
3613	3613	5 220 ILCS 5/1-103 new
3614	3614	6 220 ILCS 5/3-127 new
3615	3615	7 220 ILCS 5/8-101 from Ch. 111 2/3, par. 8-101
3616	3616	8 220 ILCS 5/8-104B new
3617	3617	9 220 ILCS 5/9-228.5 new
3618	3618	10 220 ILCS 5/9-229
3619	3619	11 220 ILCS 5/9-235 new
3620	3620	12 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241
3621	3621	13 220 ILCS 5/9-254 new
3622	3622	14 220 ILCS 5/9-255 new
3623	3623	15 220 ILCS 5/16-111.10
3624	3624	16 220 ILCS 5/Art. XXIII
3625	3625	17 heading new
3626	3626	18 220 ILCS 5/23-101 new
3627	3627	19 220 ILCS 5/23-102 new
3628	3628	20 220 ILCS 5/23-103 new
3629	3629	21 220 ILCS 5/23-104 new
3630	3630	22 220 ILCS 5/23-105 new
3631	3631	23 220 ILCS 5/23-106 new
3632	3632	24 220 ILCS 5/23-107 new
3633	3633	25 220 ILCS 5/23-108 new
3634	3634	SB3935- 103 -LRB103 40383 LNS 72670 b SB3935 - 103 - LRB103 40383 LNS 72670 b
3635	3635	SB3935 - 103 - LRB103 40383 LNS 72670 b
3636	3636
3637	3637
3638	3638
3639	3639
3640	3640
3641	3641	SB3935 - 101 - LRB103 40383 LNS 72670 b
3642	3642
3643	3643
3644	3644
3645	3645	SB3935- 102 -LRB103 40383 LNS 72670 b SB3935 - 102 - LRB103 40383 LNS 72670 b
3646	3646	SB3935 - 102 - LRB103 40383 LNS 72670 b
3647	3647	1 INDEX
3648	3648	2 Statutes amended in order of appearance
3649	3649	3 20 ILCS 730/5-25
3650	3650	4 220 ILCS 5/1-102 from Ch. 111 2/3, par. 1-102
3651	3651	5 220 ILCS 5/1-103 new
3652	3652	6 220 ILCS 5/3-127 new
3653	3653	7 220 ILCS 5/8-101 from Ch. 111 2/3, par. 8-101
3654	3654	8 220 ILCS 5/8-104B new
3655	3655	9 220 ILCS 5/9-228.5 new
3656	3656	10 220 ILCS 5/9-229
3657	3657	11 220 ILCS 5/9-235 new
3658	3658	12 220 ILCS 5/9-241 from Ch. 111 2/3, par. 9-241
3659	3659	13 220 ILCS 5/9-254 new
3660	3660	14 220 ILCS 5/9-255 new
3661	3661	15 220 ILCS 5/16-111.10
3662	3662	16 220 ILCS 5/Art. XXIII
3663	3663	17 heading new
3664	3664	18 220 ILCS 5/23-101 new
3665	3665	19 220 ILCS 5/23-102 new
3666	3666	20 220 ILCS 5/23-103 new
3667	3667	21 220 ILCS 5/23-104 new
3668	3668	22 220 ILCS 5/23-105 new
3669	3669	23 220 ILCS 5/23-106 new
3670	3670	24 220 ILCS 5/23-107 new
3671	3671	25 220 ILCS 5/23-108 new
3672	3672
3673	3673
3674	3674
3675	3675
3676	3676
3677	3677	SB3935 - 102 - LRB103 40383 LNS 72670 b
3678	3678
3679	3679
3680	3680	SB3935- 103 -LRB103 40383 LNS 72670 b SB3935 - 103 - LRB103 40383 LNS 72670 b
3681	3681	SB3935 - 103 - LRB103 40383 LNS 72670 b
3682	3682
3683	3683
3684	3684
3685	3685
3686	3686
3687	3687	SB3935 - 103 - LRB103 40383 LNS 72670 b