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 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 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 LRB103 40383 LNS 72670 b A BILL FOR SB3935LRB103 40383 LNS 72670 b SB3935 LRB103 40383 LNS 72670 b SB3935 LRB103 40383 LNS 72670 b 1 AN ACT concerning regulation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Energy Transition Act is amended by 5 changing Section 5-25 as follows: 6 (20 ILCS 730/5-25) 7 (Section scheduled to be repealed on September 15, 2045) 8 Sec. 5-25. Clean Jobs Curriculum. 9 (a) As used in this Section, "clean energy jobs", subject 10 to administrative rules, means jobs in the solar energy, wind 11 energy, energy efficiency, energy storage, solar thermal, 12 green hydrogen, geothermal, electric vehicle industries, 13 electrification industries, other renewable energy industries, 14 industries achieving emission reductions, and other related 15 sectors including related industries that manufacture, 16 develop, build, maintain, or provide ancillary services to 17 renewable energy resources or energy efficiency products or 18 services, including the manufacture and installation of 19 healthier building materials that contain fewer hazardous 20 chemicals. "Clean energy jobs" includes administrative, sales, 21 other support functions within these industries and other 22 related sector industries. 23 (b) The Department shall convene a comprehensive 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 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 LRB103 40383 LNS 72670 b A BILL FOR See Index LRB103 40383 LNS 72670 b SB3935 LRB103 40383 LNS 72670 b SB3935- 2 -LRB103 40383 LNS 72670 b SB3935 - 2 - LRB103 40383 LNS 72670 b SB3935 - 2 - LRB103 40383 LNS 72670 b 1 stakeholder process that includes representatives from the 2 State Board of Education, the Illinois Community College 3 Board, the Department of Labor, community-based organizations, 4 workforce development providers, labor unions, building 5 trades, educational institutions, residents of BIPOC and 6 low-income communities, residents of environmental justice 7 communities, clean energy businesses, nonprofit organizations, 8 worker-owned cooperatives, other groups that provide clean 9 energy jobs opportunities, groups that provide construction 10 and building trades job opportunities, and other participants 11 to identify the career pathways and training curriculum needed 12 for participants to be skilled, work ready, and able to enter 13 clean energy jobs. The curriculum shall: 14 (1) identify the core training curricular competency 15 areas needed to prepare workers to enter clean energy and 16 related sector jobs; 17 (2) identify a set of required core cross-training 18 competencies provided in each training area for clean 19 energy jobs with the goal of enabling any trainee to 20 receive a standard set of skills common to multiple 21 training areas that would provide a foundation for 22 pursuing a career composed of multiple clean energy job 23 types; 24 (3) include approaches to integrate broad occupational 25 training to provide career entry into the general 26 construction and building trades sector and any remedial SB3935 - 2 - LRB103 40383 LNS 72670 b SB3935- 3 -LRB103 40383 LNS 72670 b SB3935 - 3 - LRB103 40383 LNS 72670 b SB3935 - 3 - LRB103 40383 LNS 72670 b 1 education and work readiness support necessary to achieve 2 educational and professional eligibility thresholds; and 3 (4) identify on-the-job training formats, where 4 relevant, and identify suggested trainer certification 5 standards, where relevant. 6 (c) The Department shall publish a report that includes 7 the findings, recommendations, and core curriculum identified 8 by the stakeholder group and shall post a copy of the report on 9 its public website. The Department shall convene the process 10 described to update and modify the recommended curriculum 11 every 3 years to ensure the curriculum contents are current to 12 the evolving clean energy industries, practices, and 13 technologies. 14 (d) Organizations that receive funding to provide training 15 under the Clean Jobs Workforce Network Program, including, but 16 not limited to, community-based and labor-based training 17 providers, and educational institutions must use the core 18 curriculum that is developed under this Section. 19 (Source: P.A. 102-662, eff. 9-15-21.) 20 Section 10. The Public Utilities Act is amended by 21 changing Sections 1-102, 8-101, 9-229, 9-241, and 16-111.10 22 and by adding Sections 1-103, 3-127, 8-104B, 9-228.5, 9-235, 23 9-254, and 9-255, and Articles XXIII, XXIV, and XXV as 24 follows: SB3935 - 3 - LRB103 40383 LNS 72670 b SB3935- 4 -LRB103 40383 LNS 72670 b SB3935 - 4 - LRB103 40383 LNS 72670 b SB3935 - 4 - LRB103 40383 LNS 72670 b 1 (220 ILCS 5/1-102) (from Ch. 111 2/3, par. 1-102) 2 Sec. 1-102. Findings and Intent. The General Assembly 3 finds that the health, welfare, and prosperity of all Illinois 4 citizens require the provision of adequate, efficient, 5 reliable, affordable, environmentally safe, and least-cost 6 public utility services at prices which accurately reflect the 7 long-term cost of such services and which are equitable to all 8 citizens. It is therefore declared to be the policy of the 9 State that public utilities shall continue to be regulated 10 effectively and comprehensively. It is further declared that 11 the goals and objectives of such regulation shall be to 12 ensure: 13 (a) Efficiency: the provision of reliable and 14 affordable energy services that meet the State's climate 15 and emissions reduction targets at the lowest societal 16 least possible cost to the citizens of the State; in such 17 manner that: 18 (i) physical, human, and financial resources are 19 allocated efficiently and equitably; 20 (ii) all supply and demand options are considered 21 and evaluated using comparable terms and methods in 22 order to determine how utilities shall meet State 23 emissions reduction targets and their customers' 24 demands for public utility services at the lowest 25 societal least cost; 26 (iii) utilities are allowed a sufficient return on SB3935 - 4 - LRB103 40383 LNS 72670 b SB3935- 5 -LRB103 40383 LNS 72670 b SB3935 - 5 - LRB103 40383 LNS 72670 b SB3935 - 5 - LRB103 40383 LNS 72670 b 1 investment so as to enable them to attract capital in 2 financial markets at competitive rates; 3 (iv) tariff rates for the sale of various public 4 utility services are authorized such that they 5 accurately reflect the cost of delivering those 6 services and allow utilities to recover the total 7 costs prudently and reasonably incurred; 8 (v) variation in costs by customer class and time 9 of use is taken into consideration in authorizing 10 rates for each class. 11 (b) Environmental Quality: the protection of the 12 environment, people, and communities from the adverse 13 external costs of public utility services, including 14 environmental costs, so that: 15 (i) environmental costs of proposed actions having 16 a significant impact on the environment and the 17 environmental impact of the alternatives are 18 identified, documented, monetized, included in 19 assessments of cost, and considered in all aspects of 20 the regulatory process; 21 (ii) the prudently and reasonably incurred costs 22 of environmental controls are recovered. 23 (c) Reliability: the ability of utilities to provide 24 consumers with public utility services under varying 25 demand conditions in such manner that suppliers of public 26 utility services are able to provide service at varying SB3935 - 5 - LRB103 40383 LNS 72670 b SB3935- 6 -LRB103 40383 LNS 72670 b SB3935 - 6 - LRB103 40383 LNS 72670 b SB3935 - 6 - LRB103 40383 LNS 72670 b 1 levels of economic reliability giving appropriate 2 consideration to the costs likely to be incurred as a 3 result of service interruptions, and to the costs of 4 increasing or maintaining current levels of reliability 5 consistent with commitments to consumers. 6 (d) Equity: the fair treatment of consumers, including 7 equity investment eligible persons and equity investment 8 eligible communities, as defined in the Energy Transition 9 Act, and investors in order that 10 (i) the public health, safety, and welfare shall 11 be protected; 12 (ii) the application of rates is based on public 13 understandability and acceptance of the reasonableness 14 of the rate structure and level; 15 (iii) the cost of supplying public utility 16 services is allocated to those who cause the costs to 17 be incurred; 18 (iv) if factors other than cost of service are 19 considered in regulatory decisions, the rationale for 20 these actions is set forth; 21 (v) regulation allows for orderly transition 22 periods to accommodate changes in public utility 23 service markets; 24 (vi) regulation does not result in undue or 25 sustained adverse impact on utility earnings; 26 (vii) the impacts of regulatory actions on all SB3935 - 6 - LRB103 40383 LNS 72670 b SB3935- 7 -LRB103 40383 LNS 72670 b SB3935 - 7 - LRB103 40383 LNS 72670 b SB3935 - 7 - LRB103 40383 LNS 72670 b 1 sectors of the State are carefully weighed; 2 (viii) the rates for utility services are 3 affordable and, therefore, ensure and preserve the 4 availability and accessibility of such services to all 5 customers, and customers are not energy burdened or 6 severely energy burdened citizens. 7 As used in this subsection (d): 8 (I) "Energy burdened" means, with respect to a 9 customer's household, that the household pays 6% or 10 more of its income toward electricity and gas bills. 11 (II) "Severely energy burdened" means, with 12 respect to a customer's household, that the household 13 pays 10% or more of its income toward electricity and 14 gas bills. 15 (e) Affordability: the ability of utilities to ensure 16 uninterrupted access to essential utility service; to 17 minimize and reduce over time the number of households who 18 are energy burdened and severely energy burdened, as 19 defined in this Act, ideally to zero; and to minimize 20 disconnections to residential customers in a manner which 21 ensures that: 22 (i) all low-income customers, defined as those 23 whose income is less than or equal to 80% of the area 24 median income, as defined by the United States 25 Department of Housing and Urban Development, have 26 access to a discounted utility rate; SB3935 - 7 - LRB103 40383 LNS 72670 b SB3935- 8 -LRB103 40383 LNS 72670 b SB3935 - 8 - LRB103 40383 LNS 72670 b SB3935 - 8 - LRB103 40383 LNS 72670 b 1 (ii) low-income customers 65 years of age or older 2 are not disconnected from essential utility service 3 due to inability to afford the monthly bill; 4 (iii) low-income customers with children under the 5 age of 6 are not disconnected from essential utility 6 service due to inability to afford the monthly bill; 7 (iv) persons with medical conditions are not 8 disconnected from essential utility service if a 9 medical or qualified professional as described in 10 subsection (b) of Section 8-202.7 certifies that the 11 condition will be exacerbated by disconnection from 12 essential utility service; 13 (v) disconnection of essential utility service is 14 not accelerated based on a utility's payment risk 15 assessment of a customer; and 16 (vi) a utility assesses whether a customer may be 17 eligible for energy assistance programs under the 18 Energy Assistance Act, provides the customer with 19 specific information on where and how to obtain energy 20 assistance, and ceases disconnection activity for 60 21 days to allow the customer to apply for and establish 22 eligibility for the energy assistance. 23 It is further declared to be the policy of the State that 24 this Act shall not apply in relation to motor carriers and rail 25 carriers as defined in the Illinois Commercial Transportation 26 Law, or to the Commission in the regulation of such carriers. SB3935 - 8 - LRB103 40383 LNS 72670 b SB3935- 9 -LRB103 40383 LNS 72670 b SB3935 - 9 - LRB103 40383 LNS 72670 b SB3935 - 9 - LRB103 40383 LNS 72670 b 1 Nothing in this Act shall be construed to limit, restrict, 2 or mitigate in any way the power and authority of the State's 3 Attorneys or the Attorney General under the Consumer Fraud and 4 Deceptive Business Practices Act. 5 (Source: P.A. 92-22, eff. 6-30-01.) 6 (220 ILCS 5/1-103 new) 7 Sec. 1-103. Commission methodologies and metrics. The 8 Commission shall oversee the objectives identified in Section 9 1-102 by establishing and implementing methodologies for 10 tracking each of the following metrics: 11 (1) Environmental costs: The Commission shall 12 establish a social cost of greenhouse gases, measured in 13 dollars per ton of carbon dioxide equivalent, that shall 14 serve as a monetary estimate of the value of not emitting a 15 ton of greenhouse gas emissions. The Commission shall 16 consider prior or existing estimates of the social cost of 17 carbon issued or adopted by the federal government, 18 appropriate international bodies, or other appropriate and 19 reputable scientific organizations. The social cost of 20 greenhouse gases shall: 21 (A) estimate the emissions for all relevant 22 greenhouse gases, including carbon, methane, nitrous 23 oxide, hydrofluorocarbons and hydrofluoroolefins, 24 perfluorocarbons, sulfur hexafluoride, and nitrogen 25 trifluoride; SB3935 - 9 - LRB103 40383 LNS 72670 b SB3935- 10 -LRB103 40383 LNS 72670 b SB3935 - 10 - LRB103 40383 LNS 72670 b SB3935 - 10 - LRB103 40383 LNS 72670 b 1 (B) consider the fullest geographic and temporal 2 scope of damages; 3 (C) for the purposes of this Act, the cost of 4 greenhouse gas emissions is no less than the cost per 5 metric ton of carbon dioxide equivalent emissions, 6 using the 2.5% discount rate, listed in Table ES-1 of 7 "Technical Support Document: Social Cost of Carbon, 8 Methane, and Nitrous Oxide Interim Estimates under 9 Executive Order 13990", a report prepared in support 10 of federal Executive Order 13990 and dated February 11 2021. 12 The Commission must annually adjust the costs 13 established in this Section to reflect the effect of 14 inflation and may, at its discretion, set the price at a 15 higher level than described above, but no lower. 16 (2) Impacts to public health: The Commission shall 17 develop a methodology for measuring and monetizing in cost 18 assessments the public health impacts of pollutants, 19 including impacts of both indoor and outdoor air quality, 20 including carbon monoxide and carbon dioxide, nitrogen 21 oxides, including nitrogen dioxide, particulate matter, 22 formaldehyde, sulfur dioxide, ozone, and lead. The 23 Commission shall integrate its methodology into 24 assessments of utility system planning and supply and 25 demand-side resource selection. 26 It is further declared to be the policy of the State that SB3935 - 10 - LRB103 40383 LNS 72670 b SB3935- 11 -LRB103 40383 LNS 72670 b SB3935 - 11 - LRB103 40383 LNS 72670 b SB3935 - 11 - LRB103 40383 LNS 72670 b 1 this Section does not apply to motor carriers and rail 2 carriers as defined in the Illinois Commercial Transportation 3 Law or to the Commission in the regulation of such carriers. 4 Nothing in this Section shall be construed to limit, 5 restrict, or mitigate in any way the power and authority of the 6 State's Attorneys or the Attorney General under the Consumer 7 Fraud and Deceptive Business Practices Act. 8 (220 ILCS 5/3-127 new) 9 Sec. 3-127. Fixed charge. "Fixed charge" means a charge 10 that is assessed by a public utility as part of its rates, is 11 equal across all customers or customers of a certain class, 12 and is not directly proportional to a customer's usage. 13 (220 ILCS 5/8-101) (from Ch. 111 2/3, par. 8-101) 14 Sec. 8-101. Duties of public utilities; nondiscrimination. 15 A public utility shall furnish, provide, and maintain such 16 service instrumentalities, equipment, and facilities as shall 17 promote the safety, health, comfort, and convenience of its 18 patrons, employees, and public and as shall be in all respects 19 adequate, efficient, just, and reasonable. 20 All rules and regulations made by a public utility 21 affecting or pertaining to its charges or service to the 22 public shall be just and reasonable. 23 An electric A public utility shall, and a gas utility may, 24 upon reasonable notice, furnish to all persons who may apply SB3935 - 11 - LRB103 40383 LNS 72670 b SB3935- 12 -LRB103 40383 LNS 72670 b SB3935 - 12 - LRB103 40383 LNS 72670 b SB3935 - 12 - LRB103 40383 LNS 72670 b 1 therefor and be reasonably entitled thereto, suitable 2 facilities and service, without discrimination and without 3 delay. Notwithstanding any other provision of law, a gas 4 utility may cease providing service if the Commission 5 determines that adequate substitute service is available at a 6 reasonable cost to support the existing end uses of the 7 affected utility customers. Any applicant for gas service 8 shall receive clear, timely information from the gas utility, 9 written in plain language, and approved by the Commission 10 after stakeholder input on incentives and opportunities for 11 installing, as alternatives to gas, energy-efficient electric 12 technologies and incentives and opportunities for other energy 13 efficiency measures, weatherization, demand management, and 14 distributed energy resource programs. The information provided 15 must include, among other things, information detailing 16 electrification incentives in the Inflation Reduction Act and 17 describing how the applicant can elect to receive the upfront 18 discounts or tax incentives applicable to the applicant's 19 electric purchases. 20 Nothing in this Section shall be construed to prevent a 21 public utility from accepting payment electronically or by the 22 use of a customer-preferred financially accredited credit or 23 debit methodology. 24 (Source: P.A. 92-22, eff. 6-30-01.) 25 (220 ILCS 5/8-104B new) SB3935 - 12 - LRB103 40383 LNS 72670 b SB3935- 13 -LRB103 40383 LNS 72670 b SB3935 - 13 - LRB103 40383 LNS 72670 b SB3935 - 13 - LRB103 40383 LNS 72670 b 1 Sec. 8-104B. Gas energy efficiency. 2 (a) As used in this Section: 3 "Benefit-cost ratio" means the ratio of the net present 4 value of the total benefits of the measures to the net present 5 value of the total costs as calculated over the lifetime of the 6 measures. 7 "Cost-effective measure" means a measure that satisfies 8 the total resource cost test. 9 "Energy efficiency measure" means a measure that reduces 10 (i) the total Btus of electricity and natural gas and other 11 utility-delivered gaseous fuels needed to meet an end use or 12 end uses and (ii) the amount of natural gas and other 13 utility-delivered gaseous fuels consumed on site, at the home 14 or business facility, to meet an end use or end uses. 15 "Total resource cost test" means a standard that is met 16 if, for an investment in an energy efficiency measure, the 17 benefit-cost ratio is greater than one. The total resource 18 cost test quantifies the net savings obtained through the 19 substitution of demand-side measures for supply resources by 20 comparing (i) the sum of avoided natural gas utility costs, 21 representing the benefits that accrue to the natural gas 22 system and the participant in the delivery of those energy 23 efficiency measures and including avoided costs associated 24 with the use of electricity or other fuels, avoided costs 25 associated with reduced water consumption, and avoided 26 operation and maintenance costs, as well as other quantifiable SB3935 - 13 - LRB103 40383 LNS 72670 b SB3935- 14 -LRB103 40383 LNS 72670 b SB3935 - 14 - LRB103 40383 LNS 72670 b SB3935 - 14 - LRB103 40383 LNS 72670 b 1 societal benefits and (ii) the sum of all incremental costs of 2 end-use measures, including both utility and participant 3 contribution costs to administer, deliver, and evaluate each 4 demand-side measure. In calculating avoided costs, reasonable 5 estimates shall be included for financial costs likely to be 6 imposed by future regulation of emissions of greenhouse gases. 7 In discounting future societal costs and benefits for the 8 purpose of calculating net present values, a societal discount 9 rate based on actual, long-term U.S. Treasury bond yields 10 shall be used. The income-qualified measures described in 11 paragraphs (5) and (6) of subsection (d) shall not be required 12 to meet the total resource cost test. 13 (b) It is the policy of the State for gas utilities to be 14 required to use cost-effective energy efficiency measures to 15 reduce delivery load. Requiring investment in cost-effective 16 energy efficiency measures will reduce direct and indirect 17 costs to consumers by decreasing environmental impacts, 18 reducing the amount of natural gas and other utility-delivered 19 gaseous fuels that need to be purchased, and avoiding or 20 delaying the need for new transmission, distribution, storage, 21 and other related infrastructure. Moreover, the public 22 interest is served by allowing gas utilities to recover costs 23 for reasonably and prudently incurred expenditures for energy 24 efficiency measures. 25 (c) This Section applies to all gas distribution utilities 26 in the State and supersedes Section 8-104 beginning January 1, SB3935 - 14 - LRB103 40383 LNS 72670 b SB3935- 15 -LRB103 40383 LNS 72670 b SB3935 - 15 - LRB103 40383 LNS 72670 b SB3935 - 15 - LRB103 40383 LNS 72670 b 1 2024. 2 (d) Natural gas utilities shall implement cost-effective 3 energy efficiency measures to achieve all of the following 4 requirements: 5 (1) Total incremental annual savings shall be equal to 6 at least 0.6% of annual sales to distribution customers in 7 2025, 0.8% of such sales in 2026, and at least 1% of such 8 sales in 2027 and each subsequent year. For the purpose of 9 calculating savings as a percent of sales to distribution 10 customers for a given program year, the denominator of 11 sales to distribution customers shall be annual average 12 sales over the second, third, and fourth full calendar 13 years prior to the beginning of the program year. 14 (2) The savings achieved must have an average life of 15 at least 12 years. 16 (3) Savings may not be applied toward achievement of 17 utility savings goals if the savings arise from the 18 installation of efficient new gas furnaces, gas boilers, 19 gas water heaters, or other gas-consuming equipment in a 20 residential building, such as a single-family, 21 individually metered multifamily building or a 22 master-metered multifamily building. 23 (4) At least 50% of the entire budget for efficiency 24 programs shall be spent on energy efficiency measures that 25 reduce space heating needs through improvements to the 26 efficiency of building envelopes, including, but not SB3935 - 15 - LRB103 40383 LNS 72670 b SB3935- 16 -LRB103 40383 LNS 72670 b SB3935 - 16 - LRB103 40383 LNS 72670 b SB3935 - 16 - LRB103 40383 LNS 72670 b 1 limited to, insulation measures and efficient windows and 2 energy efficiency measures that reduce air leakage through 3 improvements to systems for distributing heat, including, 4 but not limited to, duct leakage reduction, duct 5 insulation, or pipe insulation in buildings or through 6 improved heating systems controls, including, but not 7 limited to, advanced thermostats and demand control 8 ventilation. Spending on efficient furnaces, efficient 9 boilers, or other efficient heating systems is permitted 10 within business efficiency programs but does not count 11 toward this minimum requirement for spending on building 12 envelope, heating distribution, and control efficiencies. 13 Spending on income-qualified building envelope measures, 14 heating distribution system measures, and heating controls 15 does count toward this requirement. The portion of 16 portfolio spending on program marketing, training of 17 installers, audits of buildings, inspections of work 18 performed, and other administrative and technical expenses 19 that are clearly tied to promotion or installation of 20 building envelope or heating distribution system measures 21 shall count toward this requirement. If this minimum 22 requirement is not met, any performance incentive earned 23 under subsection (h) should be reduced by the percentage 24 point level of shortfall in meeting this requirement. 25 (5) The portion of the entire budget for efficiency 26 programs that is spent on efficiency measures for SB3935 - 16 - LRB103 40383 LNS 72670 b SB3935- 17 -LRB103 40383 LNS 72670 b SB3935 - 17 - LRB103 40383 LNS 72670 b SB3935 - 17 - LRB103 40383 LNS 72670 b 1 income-qualified households shall be the greater of 20% or 2 5 percentage points more than the proportion of total 3 residential and business customer gas sales going to 4 income-qualified households. For purposes of this Section, 5 households at or below 80% of area median income are 6 income-qualified. At least 80% of spending on measures in 7 programs targeted at income-qualified households shall be 8 delivered through whole building weatherization programs 9 and spent on measures that reduce space heating needs 10 through improvements to the building envelope, heating 11 distribution systems, or heating controls. The utilities 12 shall invest in health and safety measures appropriate and 13 necessary for comprehensively weatherizing the homes and 14 multifamily buildings of income-qualified households, with 15 up to 15% of income-qualified program spending made 16 available for such purposes. The ratio of spending on 17 efficiency programs targeted at multifamily buildings of 18 income-qualified households to spending on energy 19 efficiency programs targeted at single-family buildings of 20 income-qualified households shall be designed to achieve 21 levels of savings from each building type that are 22 approximately proportional to the magnitude of 23 cost-effective lifetime savings potential in each building 24 type. The gas utilities shall participate in a Low-Income 25 Energy Efficiency Accountability Committee as established 26 in Section 8-103B. SB3935 - 17 - LRB103 40383 LNS 72670 b SB3935- 18 -LRB103 40383 LNS 72670 b SB3935 - 18 - LRB103 40383 LNS 72670 b SB3935 - 18 - LRB103 40383 LNS 72670 b 1 Gas utilities must conduct customer outreach and 2 education efforts in equity investment eligible 3 communities in order to provide notice of and explanations 4 concerning the following types of programs: 5 (A) energy efficiency programs, the Illinois Solar 6 for All Program, and whole home retrofit programs that 7 reduce natural gas usage; 8 (B) income-qualified financial assistance 9 programs, including rebate programs from the federal 10 government; and 11 (C) general education programs designed to explain 12 utility bills and the decisions customers can make to 13 lower energy usage. 14 These outreach and education efforts must be brought 15 to communities in a diversity of ways, must be created 16 with input from members of the communities, and must be 17 provided through, among other things: 18 (i) information on customers' bills in the main 19 languages spoken in the communities; 20 (ii) a quarterly posting in local newspapers that 21 cover the service area; 22 (iii) a dedicated section on the investor-owned 23 utility's website; and 24 (iv) in-person and virtual educational sessions 25 that take place in the income-qualified and Justice40 26 community, provide food and child care for SB3935 - 18 - LRB103 40383 LNS 72670 b SB3935- 19 -LRB103 40383 LNS 72670 b SB3935 - 19 - LRB103 40383 LNS 72670 b SB3935 - 19 - LRB103 40383 LNS 72670 b 1 participating customers, and are codesigned with 2 interested community-based organization 3 representatives. 4 (6) Implementation of energy efficiency measures and 5 programs targeted at income-qualified households shall be 6 contracted, when practicable, to independent third parties 7 that have demonstrated the capability of serving those 8 households, with a preference for not-for-profit entities 9 and government agencies that have existing relationships 10 with, experience serving, or working directly within and 11 alongside income-qualified communities in the State. Each 12 gas utility shall develop and implement reporting 13 procedures that address and assist in determining the 14 amount of energy savings that can be applied to the 15 income-qualified procurement and expenditure requirements 16 set forth in this paragraph. 17 (7) A minimum of 10% of the utility's entire portfolio 18 funding level for a given year shall be used to procure 19 cost-effective energy efficiency measures from units of 20 local government, municipal corporations, school 21 districts, public housing, community college districts, 22 and nonprofit-owned buildings as long as a minimum 23 percentage of available funds shall be used to procure 24 energy efficiency from public housing, which percentage 25 shall be, at a minimum, equal to public housing's share of 26 public building energy consumption. Spending on public SB3935 - 19 - LRB103 40383 LNS 72670 b SB3935- 20 -LRB103 40383 LNS 72670 b SB3935 - 20 - LRB103 40383 LNS 72670 b SB3935 - 20 - LRB103 40383 LNS 72670 b 1 housing may count toward minimum spending requirements on 2 efficiency improvements for income-qualified households. 3 (e) Notwithstanding any other provision of law, a utility 4 providing approved energy efficiency measures in the State may 5 recover all reasonable and prudently incurred costs of those 6 measures from its retail customers. However, nothing in this 7 subsection permits the double recovery of such costs from 8 customers. 9 (f) Beginning in 2024, each gas utility shall file an 10 energy efficiency plan with the Commission to meet the energy 11 efficiency standards in subsection (d) for the next applicable 12 multiyear period beginning January 1 of the year following the 13 filing, according to the schedule set forth in paragraphs (1) 14 through (4). If a utility does not file such a plan on or 15 before the applicable filing deadline for the plan, the 16 utility shall be liable for a civil penalty of $100,000 per day 17 until the plan is filed. 18 (1) No later than 120 days after the effective date of 19 this amendatory Act of the 103rd General Assembly, each 20 gas utility shall file an energy efficiency plan to 21 supersede its previously filed energy efficiency plan for 22 calendar year 2025 that is designed to achieve through 23 implementation of energy efficiency measures the 24 incremental annual savings goals, minimum average savings 25 life, and other requirements specified in paragraphs (1) 26 through (7) of subsection (d). An energy efficiency plan SB3935 - 20 - LRB103 40383 LNS 72670 b SB3935- 21 -LRB103 40383 LNS 72670 b SB3935 - 21 - LRB103 40383 LNS 72670 b SB3935 - 21 - LRB103 40383 LNS 72670 b 1 submitted by a gas utility under this paragraph supersedes 2 any energy efficiency plan previously filed by the gas 3 utility for calendar year 2025. 4 (2) No later than March 1, 2025, each gas utility 5 shall file a 4-year energy efficiency plan that takes 6 effect on January 1, 2026 and is designed to achieve, 7 through implementation of emergency efficiency measures, 8 the incremental annual savings goals, minimum average 9 savings life, and other requirements specified in 10 paragraphs (1) through (7) of subsection (d). However, the 11 incremental annual savings goals may be reduced if the 12 plan's analysis and forecasts of the utility's ability to 13 acquire energy savings demonstrate by clear and convincing 14 evidence and through independent analysis that achievement 15 of such goals is not cost-effective. In no event may 16 incremental annual savings goals for any year be reduced 17 to levels below (i) those actually achieved in calendar 18 year 2024, (ii) those forecast to be achieved in calendar 19 year 2025, or (iii) 0.75% of sales. The Commission shall 20 review any proposed goal reduction as part of its review 21 and approval of the utility's proposed plan. 22 (3) Beginning in 2029 and every 4 years thereafter, 23 each gas utility shall file by no later than March 1 of the 24 applicable year, a 4-year energy efficiency plan that 25 takes effect on the following January 1 and is designed to 26 achieve, through implementation of energy efficiency SB3935 - 21 - LRB103 40383 LNS 72670 b SB3935- 22 -LRB103 40383 LNS 72670 b SB3935 - 22 - LRB103 40383 LNS 72670 b SB3935 - 22 - LRB103 40383 LNS 72670 b 1 measures, the incremental annual savings goals, minimum 2 average savings life, and other requirements specified in 3 paragraphs (1) through (7) of subsection (d). However, the 4 incremental annual savings goals may be reduced if the 5 plan's analysis and forecasts of the utility's ability to 6 acquire energy savings demonstrate by clear and convincing 7 evidence and through independent analysis that achievement 8 of such goals is not cost-effective. In no event may 9 incremental annual savings goals for any year be reduced 10 to levels below (i) those actually achieved in the 11 calendar year before the plan filing, (ii) those forecast 12 to be achieved in the calendar year in which the plan 13 filing is made, or (iii) 0.75% of sales. The Commission 14 shall review any proposed goal reduction as part of its 15 review and approval of the utility's proposed plan. 16 (4) Each utility's plan shall set forth the utility's 17 proposals to meet the energy efficiency standards 18 identified in subsection (d). The Commission shall seek 19 public comment on each plan that takes effect on January 20 1, 2024 and before January 1, 2026 and shall issue an order 21 approving or disapproving the plan no later than November 22 30, 2023, or 225 days after the effective date of this 23 amendatory Act of the 103rd General Assembly, whichever is 24 later. The Commission shall seek public comment on each 25 plan that takes effect on January 1, 2026 and shall issue 26 an order approving or disapproving the plan within 6 SB3935 - 22 - LRB103 40383 LNS 72670 b SB3935- 23 -LRB103 40383 LNS 72670 b SB3935 - 23 - LRB103 40383 LNS 72670 b SB3935 - 23 - LRB103 40383 LNS 72670 b 1 months after its submission. If the Commission disapproves 2 a plan, the Commission shall, within 30 days, describe in 3 detail the reasons for the disapproval and describe a path 4 by which the utility may file a revised draft of the plan 5 to address the Commission's concerns satisfactorily. If 6 the utility does not refile with the Commission within 60 7 days, the utility shall be subject to civil penalties at a 8 rate of $100,000 per day until the plan is refiled. This 9 process shall continue, and penalties shall accrue, until 10 the utility has successfully filed a portfolio of energy 11 efficiency measures. Penalties shall be deposited into the 12 Energy Efficiency Trust Fund. 13 (g) In submitting proposed plans and funding levels under 14 subsection (f) to meet the savings goals identified in 15 subsection (d), the utility shall: 16 (1) demonstrate that its proposed energy efficiency 17 measures will achieve the requirements that are identified 18 in subsection (d); 19 (2) demonstrate consideration of program options for 20 supporting efforts to improve compliance with new building 21 codes, appliance standards, and municipal regulations as 22 potentially cost-effective means of acquiring energy 23 savings to count toward energy savings goals; 24 (3) demonstrate that its overall portfolio of measures 25 and programs, not including income-qualified programs 26 described in subsection (d), is cost-effective using the SB3935 - 23 - LRB103 40383 LNS 72670 b SB3935- 24 -LRB103 40383 LNS 72670 b SB3935 - 24 - LRB103 40383 LNS 72670 b SB3935 - 24 - LRB103 40383 LNS 72670 b 1 total resource cost test and represents a diverse cross 2 section of opportunities for customers of all rate classes 3 to participate in programs. Individual measures need not 4 be cost-effective; 5 (4) demonstrate that the utility's plan integrates the 6 delivery of energy efficiency programs with electric 7 efficiency programs, programs promoting demand response, 8 and other efforts to address bill payment issues, 9 including, but not limited to, the Low Income Home Energy 10 Assistance Program and the Percentage of Income Payment 11 Plans; 12 (5) include a proposed or revised cost-recovery 13 mechanism to fund the proposed energy efficiency measures 14 and ensure the recovery of the prudently and reasonably 15 incurred costs of Commission-approved programs; 16 (6) provide, using not more than 3% of portfolio 17 resources in any given year, an annual independent 18 evaluation of the performance and cost-effectiveness of 19 the utility's portfolio of measures and programs; 20 (7) demonstrate how it will ensure that program 21 implementation contractors and energy efficiency 22 installation vendors will promote workforce equity and 23 quality jobs. Utilities shall collect, and make publicly 24 available at least quarterly, data necessary to 25 demonstrate how efforts are advancing workforce equity. 26 Utilities shall work with relevant vendors providing SB3935 - 24 - LRB103 40383 LNS 72670 b SB3935- 25 -LRB103 40383 LNS 72670 b SB3935 - 25 - LRB103 40383 LNS 72670 b SB3935 - 25 - LRB103 40383 LNS 72670 b 1 education, training, and other resources needed to ensure 2 compliance and, where necessary, adjusting or terminating 3 work with vendors that cannot assist with compliance; and 4 (8) include any plans for research, development, or 5 pilot deployment of new measures or program approaches. 6 For utilities with unmodified savings goals, no more than 7 4% of energy efficiency portfolio spending may be 8 allocated for such purposes. For utilities with modified 9 savings goals, no more than 2% of energy efficiency 10 portfolio spending may be allocated for such purposes. 11 Utilities shall work with interested stakeholders to 12 formulate a plan for how any proposed funds should be 13 spent, incorporate statewide approaches for these 14 allocations whenever such approaches would be more 15 effective or cost-efficient, and demonstrate such 16 collaboration in the utilities' plans. 17 (h) Each gas utility shall be eligible to earn a 18 shareholder incentive for effective implementation of its 19 efficiency programs. The incentive shall be tied to each 20 utility's annual energy efficiency spending and its savings. 21 There shall be no incentive if the independent evaluator 22 determines the utility either (i) failed to achieve the 23 minimum average savings life specified in paragraph (2) of 24 subsection (d), (ii) did not fully meet all of the 25 requirements specified in paragraphs (3) through (7) of 26 subsection (d), or (iii) failed to achieve incremental annual SB3935 - 25 - LRB103 40383 LNS 72670 b SB3935- 26 -LRB103 40383 LNS 72670 b SB3935 - 26 - LRB103 40383 LNS 72670 b SB3935 - 26 - LRB103 40383 LNS 72670 b 1 savings equal to at least 90% of the incremental savings goal 2 specified in paragraph (1) of subsection (d). If a utility 3 meets all of the requirements specified in paragraphs (2) 4 through (7) of subsection (d), it can earn an incentive equal 5 0.5% of total annual efficiency spending in the year being 6 evaluated for every one percentage point above 90% of its 7 incremental annual savings goal that it achieves for that 8 year, with a maximum incentive of 15% for achieving 120% of its 9 incremental annual savings goal. 10 (i) The utility shall submit energy savings data to the 11 independent evaluator no later than 30 days after the close of 12 the plan year. The independent evaluator shall determine the 13 incremental annual savings and average savings life, as well 14 as an estimate of the job impacts and other macroeconomic 15 impacts of the efficiency programs for that year, achieved no 16 later than 120 days after the close of the plan year. The 17 utility shall submit an informational filing to the Commission 18 no later than 160 days after the close of the plan year that 19 attaches the independent evaluator's final report identifying 20 the incremental annual savings for the year, identifying 21 average savings life for the year, documenting compliance with 22 other requirements in subsection (d), and, as applicable, the 23 magnitude of any shareholder incentive which the utility has 24 earned. 25 (j) Gas utilities shall report annually to the Commission 26 and General Assembly on how hiring, contracting, job training, SB3935 - 26 - LRB103 40383 LNS 72670 b SB3935- 27 -LRB103 40383 LNS 72670 b SB3935 - 27 - LRB103 40383 LNS 72670 b SB3935 - 27 - LRB103 40383 LNS 72670 b 1 and other practices related to its energy efficiency programs 2 enhance the diversity of vendors working on such programs. 3 These reports must include data on vendor and employee 4 diversity. 5 (k) The independent evaluator shall follow the guidelines 6 and use the savings set forth in Commission-approved energy 7 efficiency policy manuals and technical reference manuals, as 8 each may be updated from time to time. Until measure life 9 values for energy efficiency measures implemented for 10 income-qualified households are separately incorporated into 11 such Commission-approved manuals, the income-qualified 12 measures shall have the same measure life values that are 13 established for the same measures implemented in households 14 that are not income-qualified households. 15 (220 ILCS 5/9-228.5 new) 16 Sec. 9-228.5. Consideration of gas main and gas service 17 extension costs. Gas main and gas service extension policies 18 shall be based on the principle that the full incremental cost 19 associated with new development and growth shall be borne by 20 the customers that cause those incremental costs. Gas main and 21 gas service extension policies, procedures, and conditions 22 shall align with the greenhouse gas emission reduction goals 23 established in Article XXIV. 24 (220 ILCS 5/9-229) SB3935 - 27 - LRB103 40383 LNS 72670 b SB3935- 28 -LRB103 40383 LNS 72670 b SB3935 - 28 - LRB103 40383 LNS 72670 b SB3935 - 28 - LRB103 40383 LNS 72670 b 1 Sec. 9-229. Consideration of attorney and expert 2 compensation as an expense and intervenor compensation fund. 3 (a) The Commission shall specifically assess the justness 4 and reasonableness of any amount expended by a public utility 5 to compensate attorneys or technical experts to prepare and 6 litigate a general rate case filing. This issue shall be 7 expressly addressed in the Commission's final order. 8 (b) The State of Illinois shall create a Consumer 9 Intervenor Compensation Fund subject to the following: 10 (1) Provision of compensation for Consumer Interest 11 Representatives that intervene in Illinois Commerce 12 Commission proceedings will increase public engagement, 13 encourage additional transparency, expand the information 14 available to the Commission, and improve decision-making. 15 (2) As used in this Section, "consumer Consumer 16 interest representative" means: 17 (A) a residential utility customer or group of 18 residential utility customers represented by a 19 not-for-profit group or organization registered with 20 the Illinois Attorney General under the Solicitation 21 for of Charity Act; 22 (B) representatives of not-for-profit groups or 23 organizations whose membership is limited to 24 residential utility customers; or 25 (C) representatives of not-for-profit groups or 26 organizations whose membership includes Illinois SB3935 - 28 - LRB103 40383 LNS 72670 b SB3935- 29 -LRB103 40383 LNS 72670 b SB3935 - 29 - LRB103 40383 LNS 72670 b SB3935 - 29 - LRB103 40383 LNS 72670 b 1 residents and that address the community, economic, 2 environmental, or social welfare of Illinois 3 residents, except government agencies or intervenors 4 specifically authorized by Illinois law to participate 5 in Commission proceedings on behalf of Illinois 6 consumers. 7 (3) A consumer interest representative is eligible to 8 receive compensation from the consumer intervenor 9 compensation fund if its participation included lay or 10 expert testimony or legal briefing and argument concerning 11 the expenses, investments, rate design, rate impact, or 12 other matters affecting the pricing, rates, costs or other 13 charges associated with utility service, the Commission 14 adopts a material recommendation related to a significant 15 issue in the docket, and participation caused a 16 significant financial cost hardship to the participant; 17 however, no consumer interest representative shall be 18 eligible to receive an award pursuant to this Section if 19 the consumer interest representative receives any 20 compensation, funding, or donations, directly or 21 indirectly, from parties that have a financial interest in 22 the outcome of the proceeding. 23 (4) Within 30 days after September 15, 2021 (the 24 effective date of Public Act 102-662) this amendatory Act 25 of the 102nd General Assembly, each utility that files a 26 request for an increase in rates under Article IX or SB3935 - 29 - LRB103 40383 LNS 72670 b SB3935- 30 -LRB103 40383 LNS 72670 b SB3935 - 30 - LRB103 40383 LNS 72670 b SB3935 - 30 - LRB103 40383 LNS 72670 b 1 Article XVI shall deposit an amount equal to one half of 2 the rate case attorney and expert expense allowed by the 3 Commission, but not to exceed $500,000, into the fund 4 within 35 days of the date of the Commission's Final final 5 Order in the rate case or 20 days after the denial of 6 rehearing under Section 10-113 of this Act, whichever is 7 later. The Consumer Intervenor Compensation Fund shall be 8 used to provide payment to consumer interest 9 representatives as described in this Section. 10 (5) An electric public utility with 3,000,000 or more 11 retail customers shall contribute $450,000 to the Consumer 12 Intervenor Compensation Fund within 60 days after 13 September 15, 2021 (the effective date of Public Act 14 102-662) this amendatory Act of the 102nd General 15 Assembly. A combined electric and gas public utility 16 serving fewer than 3,000,000 but more than 500,000 retail 17 customers shall contribute $225,000 to the Consumer 18 Intervenor Compensation Fund within 60 days after 19 September 15, 2021 (the effective date of Public Act 20 102-662) this amendatory Act of the 102nd General 21 Assembly. A gas public utility with 1,500,000 or more 22 retail customers that is not a combined electric and gas 23 public utility shall contribute $225,000 to the Consumer 24 Intervenor Compensation Fund within 60 days after 25 September 15, 2021 (the effective date of Public Act 26 102-662) this amendatory Act of the 102nd General SB3935 - 30 - LRB103 40383 LNS 72670 b SB3935- 31 -LRB103 40383 LNS 72670 b SB3935 - 31 - LRB103 40383 LNS 72670 b SB3935 - 31 - LRB103 40383 LNS 72670 b 1 Assembly. A gas public utility with fewer than 1,500,000 2 retail customers but more than 300,000 retail customers 3 that is not a combined electric and gas public utility 4 shall contribute $80,000 to the Consumer Intervenor 5 Compensation Fund within 60 days after September 15, 2021 6 (the effective date of Public Act 102-662) this amendatory 7 Act of the 102nd General Assembly. A gas public utility 8 with fewer than 300,000 retail customers that is not a 9 combined electric and gas public utility shall contribute 10 $20,000 to the Consumer Intervenor Compensation Fund 11 within 60 days after September 15, 2021 (the effective 12 date of Public Act 102-662) this amendatory Act of the 13 102nd General Assembly. A combined electric and gas public 14 utility serving fewer than 500,000 retail customers shall 15 contribute $20,000 to the Consumer Intervenor Compensation 16 Fund within 60 days after September 15, 2021 (the 17 effective date of Public Act 102-662) this amendatory Act 18 of the 102nd General Assembly. A water or sewer public 19 utility serving more than 100,000 retail customers shall 20 contribute $80,000, and a water or sewer public utility 21 serving fewer than 100,000 but more than 10,000 retail 22 customers shall contribute $20,000. 23 (6)(A) Prior to the entry of a Final Order in a 24 docketed case, the Commission Administrator shall provide 25 a payment to a consumer interest representative that 26 demonstrates through a verified application for funding SB3935 - 31 - LRB103 40383 LNS 72670 b SB3935- 32 -LRB103 40383 LNS 72670 b SB3935 - 32 - LRB103 40383 LNS 72670 b SB3935 - 32 - LRB103 40383 LNS 72670 b 1 that the consumer interest representative's participation 2 or intervention without an award of fees or costs imposes 3 a significant financial hardship based on a schedule to be 4 developed by the Commission. The Administrator may require 5 verification of costs incurred, including statements of 6 hours spent, as a condition to paying the consumer 7 interest representative prior to the entry of a Final 8 Order in a docketed case. 9 (B) If the Commission adopts a material recommendation 10 related to a significant issue in the docket and 11 participation caused a significant financial cost hardship 12 to the participant, then the consumer interest 13 representative shall be allowed payment for some or all of 14 the consumer interest representative's reasonable 15 attorney's or advocate's fees, reasonable expert witness 16 fees, and other reasonable costs of preparation for and 17 participation in a hearing or proceeding. Expenses related 18 to travel or meals shall not be compensable. 19 (C) The consumer interest representative shall submit 20 an itemized request for compensation to the Consumer 21 Intervenor Compensation Fund, including the advocate's or 22 attorney's reasonable fee rate, the number of hours 23 expended, reasonable expert and expert witness fees, and 24 other reasonable costs for the preparation for and 25 participation in the hearing and briefing within 30 days 26 of the Commission's final order after denial or decision SB3935 - 32 - LRB103 40383 LNS 72670 b SB3935- 33 -LRB103 40383 LNS 72670 b SB3935 - 33 - LRB103 40383 LNS 72670 b SB3935 - 33 - LRB103 40383 LNS 72670 b 1 on rehearing, if any. 2 (7) Administration of the Fund. 3 (A) The Consumer Intervenor Compensation Fund is 4 created as a special fund in the State treasury. All 5 disbursements from the Consumer Intervenor Compensation 6 Fund shall be made only upon warrants of the Comptroller 7 drawn upon the Treasurer as custodian of the Fund upon 8 vouchers signed by the Executive Director of the 9 Commission or by the person or persons designated by the 10 Director for that purpose. The Comptroller is authorized 11 to draw the warrant upon vouchers so signed. The Treasurer 12 shall accept all warrants so signed and shall be released 13 from liability for all payments made on those warrants. 14 The Consumer Intervenor Compensation Fund shall be 15 administered by an Administrator that is a person or 16 entity that is independent of the Commission. The 17 administrator will be responsible for the prudent 18 management of the Consumer Intervenor Compensation Fund 19 and for recommendations for the award of consumer 20 intervenor compensation from the Consumer Intervenor 21 Compensation Fund. The Commission shall issue a request 22 for qualifications for a third-party program administrator 23 to administer the Consumer Intervenor Compensation Fund. 24 The third-party administrator shall be chosen through a 25 competitive bid process based on selection criteria and 26 requirements developed by the Commission. The Illinois SB3935 - 33 - LRB103 40383 LNS 72670 b SB3935- 34 -LRB103 40383 LNS 72670 b SB3935 - 34 - LRB103 40383 LNS 72670 b SB3935 - 34 - LRB103 40383 LNS 72670 b 1 Procurement Code does not apply to the hiring or payment 2 of the Administrator. All Administrator costs may be paid 3 for using monies from the Consumer Intervenor Compensation 4 Fund, but the Program Administrator shall strive to 5 minimize costs in the implementation of the program. 6 (B) The computation of compensation awarded from the 7 fund shall take into consideration the market rates paid 8 to persons of comparable training and experience who offer 9 similar services, but may not exceed the comparable market 10 rate for services paid by the public utility as part of its 11 rate case expense. 12 (C)(1) Recommendations on the award of compensation by 13 the administrator shall include consideration of whether 14 the participation raised Commission adopted a material 15 recommendation related to a significant issue in the 16 docket and whether participation caused a significant 17 financial cost hardship to the participant and the payment 18 of compensation is fair, just, and reasonable. 19 (2) Recommendations on the award of compensation by 20 the administrator shall be submitted to the Commission for 21 approval. Unless the Commission initiates an investigation 22 within 45 days after the notice to the Commission, the 23 award of compensation shall be allowed 45 days after 24 notice to the Commission. Such notice shall be given by 25 filing with the Commission on the Commission's e-docket 26 system, and keeping open for public inspection the award SB3935 - 34 - LRB103 40383 LNS 72670 b SB3935- 35 -LRB103 40383 LNS 72670 b SB3935 - 35 - LRB103 40383 LNS 72670 b SB3935 - 35 - LRB103 40383 LNS 72670 b 1 for compensation proposed by the Administrator. The 2 Commission shall have power, and it is hereby given 3 authority, either upon complaint or upon its own 4 initiative without complaint, at once, and if it so 5 orders, without answer or other formal pleadings, but upon 6 reasonable notice, to enter upon a hearing concerning the 7 propriety of the award. 8 (c) The Commission may adopt rules to implement this 9 Section. 10 (Source: P.A. 102-662, eff. 9-15-21; revised 1-20-24.) 11 (220 ILCS 5/9-235 new) 12 Sec. 9-235. Tariffed gas main and gas service extension 13 provisions. No later than 60 days after the effective date of 14 this amendatory Act of the 103rd General Assembly, the 15 Commission shall initiate a docketed rulemaking reviewing each 16 gas public utility tariff that provides for gas main and gas 17 service extensions without additional charge to new customers 18 in excess of the default extensions without charge as 19 specified in 83 Ill. Adm. Code 501. The focus of the rulemaking 20 shall be to modify each gas utility's gas main and gas service 21 extension tariff to align with the provisions set forth in 22 Section 9-228.5. 23 (220 ILCS 5/9-241) (from Ch. 111 2/3, par. 9-241) 24 Sec. 9-241. No public utility shall, as to rates or other SB3935 - 35 - LRB103 40383 LNS 72670 b SB3935- 36 -LRB103 40383 LNS 72670 b SB3935 - 36 - LRB103 40383 LNS 72670 b SB3935 - 36 - LRB103 40383 LNS 72670 b 1 charges, services, facilities, or in other respect, make or 2 grant any preference or advantage to any corporation or person 3 or subject any corporation or person to any prejudice or 4 disadvantage. No public utility shall establish or maintain 5 any unreasonable difference as to rates or other charges, 6 services, facilities, or in any other respect, either as 7 between localities or as between classes of service. 8 However, nothing in this Section shall be construed as 9 limiting the authority of the Commission to permit the 10 establishment of economic development rates as incentives to 11 economic development either in enterprise zones as designated 12 by the State of Illinois or in other areas of a utility's 13 service area. Such rates should be available to existing 14 businesses which demonstrate an increase to existing load as 15 well as new businesses which create new load for a utility so 16 as to create a more balanced utilization of generating 17 capacity. The Commission shall ensure that such rates are 18 established at a level which provides a net benefit to 19 customers within a public utility's service area. 20 On or before January 1, 2025 2023, the Commission shall 21 conduct a comprehensive study to assess whether low-income 22 discount rates for electric and natural gas residential 23 customers are appropriate and the potential design and 24 implementation of any such rates. The Commission shall include 25 its findings, together with the appropriate recommendations, 26 in a report to be provided to the General Assembly. Upon SB3935 - 36 - LRB103 40383 LNS 72670 b SB3935- 37 -LRB103 40383 LNS 72670 b SB3935 - 37 - LRB103 40383 LNS 72670 b SB3935 - 37 - LRB103 40383 LNS 72670 b 1 completion of the study, the Commission shall have the 2 authority to permit or require electric and natural gas 3 utilities to file a tariff establishing low-income discount 4 rates. 5 Such study shall assess, at a minimum, the following: 6 (1) customer eligibility requirements, including 7 income-based eligibility and eligibility based on 8 participation in or eligibility for certain public 9 assistance programs; 10 (2) appropriate rate structures, including 11 consideration of tiered discounts for different income 12 levels; 13 (3) appropriate recovery mechanisms, including the 14 consideration of volumetric charges and customer charges; 15 (4) appropriate verification mechanisms; 16 (5) measures to ensure customer confidentiality and 17 data safeguards; 18 (6) outreach and consumer education procedures; and 19 (7) the impact that a low-income discount rate would 20 have on the affordability of delivery service to 21 low-income customers and customers overall. 22 On or before January 1, 2026, the Commission shall begin a 23 docketed rulemaking process to implement low-income discount 24 rates for electric and natural gas residential customers, 25 incorporating the recommendations of the report required by 26 this Section, released by the Commission in December 2022 and SB3935 - 37 - LRB103 40383 LNS 72670 b SB3935- 38 -LRB103 40383 LNS 72670 b SB3935 - 38 - LRB103 40383 LNS 72670 b SB3935 - 38 - LRB103 40383 LNS 72670 b 1 titled the "Illinois Commerce Commission Low-Income Discount 2 Rate Study Report to the Illinois General Assembly". 3 The Commission shall adopt rules requiring utility 4 companies to produce information, in the form of a mailing, 5 and other approved methods of distribution, to its consumers, 6 to inform the consumers of available rebates, discounts, 7 credits, and other cost-saving mechanisms that can help them 8 lower their monthly utility bills, and send out such 9 information semi-annually, unless otherwise provided by this 10 Article. 11 Prior to October 1, 1989, no public utility providing 12 electrical or gas service shall consider the use of solar or 13 other nonconventional renewable sources of energy by a 14 customer as a basis for establishing higher rates or charges 15 for any service or commodity sold to such customer; nor shall a 16 public utility subject any customer utilizing such energy 17 source or sources to any other prejudice or disadvantage on 18 account of such use. No public utility shall without the 19 consent of the Commission, charge or receive any greater 20 compensation in the aggregate for a lesser commodity, product, 21 or service than for a greater commodity, product, or service 22 of like character. 23 The Commission, in order to expedite the determination of 24 rate questions, or to avoid unnecessary and unreasonable 25 expense, or to avoid unjust or unreasonable discrimination 26 between classes of customers, or, whenever in the judgment of SB3935 - 38 - LRB103 40383 LNS 72670 b SB3935- 39 -LRB103 40383 LNS 72670 b SB3935 - 39 - LRB103 40383 LNS 72670 b SB3935 - 39 - LRB103 40383 LNS 72670 b 1 the Commission public interest so requires, may, for rate 2 making and accounting purposes, or either of them, consider 3 one or more municipalities either with or without the adjacent 4 or intervening rural territory as a regional unit where the 5 same public utility serves such region under substantially 6 similar conditions, and may within such region prescribe 7 uniform rates for consumers or patrons of the same class. 8 Any public utility, with the consent and approval of the 9 Commission, may as a basis for the determination of the 10 charges made by it classify its service according to the 11 amount used, the time when used, the purpose for which used, 12 and other relevant factors. 13 (Source: P.A. 102-662, eff. 9-15-21.) 14 (220 ILCS 5/9-254 new) 15 Sec. 9-254. Independent gas system assessment. 16 (a) The General Assembly finds that an independent audit 17 of the current state of the gas distribution system, and of the 18 expenditures made since 2012, will need to be made. 19 Specifically, the General Assembly finds: 20 (1) Pursuant to 2013 legislation establishing the 21 qualifying infrastructure plant charge, gas utilities in 22 this State that serve over 700,000 retail customers have 23 spent significant amounts of ratepayer dollars on system 24 investments purporting to refurbish, rebuild, modernize, 25 and expand gas system infrastructure. SB3935 - 39 - LRB103 40383 LNS 72670 b SB3935- 40 -LRB103 40383 LNS 72670 b SB3935 - 40 - LRB103 40383 LNS 72670 b SB3935 - 40 - LRB103 40383 LNS 72670 b 1 (2) The qualifying infrastructure plant charge is set 2 to conclude at its statutory deadline of December 31, 3 2023, and it is in the interest of this State and in the 4 interest of gas utilities' customers to understand the 5 benefits of these investments to the gas system and to 6 customers and to evaluate the current condition of the gas 7 system. 8 (3) It is also necessary for gas utilities, the 9 Commission, and stakeholders to have an independently 10 verified set of data to draw upon for future gas rate cases 11 and any other proposed gas system spending. 12 (4) Meeting the State's climate goals will require an 13 ordered transition away from gas, and toward electric 14 heating and appliances, for all or nearly all buildings, 15 and planning this transition will require a thorough 16 understanding of the current state of the gas system. 17 (5) The Commission has authority to order and 18 implement the requirements of this Section under Section 19 8-102. 20 (b) Terms used in this Section shall have the meanings 21 given to them in Section 19-105. 22 (c) Within 30 days after the effective date of this 23 amendatory Act of the 103rd General Assembly, the Commission 24 shall issue an order initiating an audit of each gas utility 25 serving over 700,000 retail customers in the State, which 26 shall examine the following: SB3935 - 40 - LRB103 40383 LNS 72670 b SB3935- 41 -LRB103 40383 LNS 72670 b SB3935 - 41 - LRB103 40383 LNS 72670 b SB3935 - 41 - LRB103 40383 LNS 72670 b 1 (1) An assessment of the gas distribution system, as 2 described in paragraph (2) of subsection (a). The 3 Commission shall have the authority to require additional 4 items that it deems necessary. 5 (2) An analysis of the utility's capital projects 6 placed into service in the preceding 10 years, including, 7 but not limited to, an assessment of the value and safety 8 impact of pipe replacement, increased system pressure, and 9 pipe capacity expansion. 10 (3) An assessment of the utility's emissions 11 reductions to date and what preparations the utility has 12 made to meet the terms of the Paris Climate Agreement, 13 with which it is the policy of the State to comply. 14 (4) The creation of a visual, geographic map of the 15 gas system displaying the level of risk of various 16 pipelines and showing the areas where pipelines have 17 already been replaced. 18 (5) The identifying areas of the gas system where the 19 cost to replace pipeline is likely to be high, including, 20 but not limited to, identifying places where 21 decommissioning a portion of the gas system and planning 22 to provide for electric heating and appliance needs in 23 that area may be preferable, considering the costs and 24 benefits for affordability, health, and climate. 25 (d) It is contemplated that the auditor will use materials 26 filed with the Commission by the utilities with respect to the SB3935 - 41 - LRB103 40383 LNS 72670 b SB3935- 42 -LRB103 40383 LNS 72670 b SB3935 - 42 - LRB103 40383 LNS 72670 b SB3935 - 42 - LRB103 40383 LNS 72670 b 1 auditor's expenditures in the preceding 10 years; however, the 2 auditor may also, with Commission approval, assess other 3 information deemed necessary to make its report. The results 4 of the audit described in this Section shall be reflected in a 5 report delivered to the Commission, describing the information 6 specified in this Section. The report is to be delivered no 7 later than 180 days after the Commission enters its order 8 under subsection (c). It is understood that any public report 9 may not contain items that are confidential or proprietary. 10 (e) The costs of a gas utility's audit described in this 11 Section shall not exceed $500,000 and shall be paid for by the 12 electric utility that is the subject of the audit. Such costs 13 shall be a recoverable expense. 14 (f) The Commission shall have the authority to retain the 15 services of an auditor to assist with the distribution 16 planning process, as well as in docketed proceedings. Such 17 expenses for these activities shall also be borne by the 18 Commission. 19 (220 ILCS 5/9-255 new) 20 Sec. 9-255. Phase-out of gas fixed changes. Beginning 21 January 1, 2035, a public utility providing gas service may 22 not assess fixed charges as part of its rates. Beginning 23 January 1, 2030, a public utility providing gas service must 24 limit, for each customer class, any fixed charges in its rates 25 to no greater than 50% of the average of monthly fixed charges SB3935 - 42 - LRB103 40383 LNS 72670 b SB3935- 43 -LRB103 40383 LNS 72670 b SB3935 - 43 - LRB103 40383 LNS 72670 b SB3935 - 43 - LRB103 40383 LNS 72670 b 1 for that customer class during the period January 1, 2019 to 2 December 31, 2021. 3 (220 ILCS 5/16-111.10) 4 Sec. 16-111.10. Equitable Energy Upgrade Program. 5 (a) The General Assembly finds and declares that Illinois 6 homes and businesses can contribute to the creation of a clean 7 energy economy, conservation of natural resources, and 8 reliability of the electricity grid through the installation 9 of cost-effective renewable energy generation, energy 10 efficiency and demand response equipment, and energy storage 11 systems. Further, a large portion of Illinois residents and 12 businesses that would benefit from the installation of energy 13 efficiency, storage, and renewable energy generation systems 14 are unable to purchase systems due to capital or credit 15 barriers. This State should pursue options to enable many more 16 Illinoisans to access the health, environmental, and financial 17 benefits of new clean energy technology. 18 (b) As used in this Section: 19 "Commission" means the Illinois Commerce Commission. 20 "Energy project" means renewable energy generation 21 systems, including solar projects, energy efficiency upgrades, 22 decarbonization and electrification measures, energy storage 23 systems, demand response equipment, or any combination 24 thereof. 25 "Fund" means the Clean Energy Jobs and Justice Fund SB3935 - 43 - LRB103 40383 LNS 72670 b SB3935- 44 -LRB103 40383 LNS 72670 b SB3935 - 44 - LRB103 40383 LNS 72670 b SB3935 - 44 - LRB103 40383 LNS 72670 b 1 established in the Clean Energy Jobs and Justice Fund Act. 2 "Program" means the Equitable Energy Upgrade Program 3 established under subsection (c). 4 "Utility" means electric public utilities providing 5 services to 500,000 or more customers under this Act. 6 (c) The Commission shall open an investigation into and 7 direct all electric and gas public utilities in this State to 8 adopt an Equitable Energy Upgrade Program that permits 9 customers to finance the construction of energy projects 10 through an optional tariff payable directly through their 11 utility bill, modeled after the Pay As You Save system, 12 developed by the Energy Efficiency Institute. The Program 13 model shall enable utilities to offer to make investments in 14 energy projects to customer properties with low-cost capital 15 and use an opt-in tariff to recover the costs. The Program 16 shall be designed to provide customers with immediate 17 financial savings if they choose to participate. The Program 18 shall allow residential electric and gas utility customers 19 that own the property, or renters that have permission of the 20 property owner, for which they subscribe to utility service to 21 agree to the installation of an energy project. The Program 22 shall ensure: 23 (1) eligible projects do not require upfront payments; 24 however, customers may pay down the costs for projects 25 with a payment to the installing contractor in order to 26 qualify projects that would otherwise require upfront SB3935 - 44 - LRB103 40383 LNS 72670 b SB3935- 45 -LRB103 40383 LNS 72670 b SB3935 - 45 - LRB103 40383 LNS 72670 b SB3935 - 45 - LRB103 40383 LNS 72670 b 1 payments; 2 (2) eligible projects have sufficient estimated 3 savings and estimated life span to produce significant, 4 immediate net savings; 5 (3) participants shall agree the utility can recover 6 its costs for the projects at their location by paying for 7 the project through an optional tariff directly through 8 the participant's utility electricity bill, allowing 9 participants to benefit from installation of energy 10 projects without traditional loans; 11 (4) accessibility by lower-income residents and 12 environmental justice community residents; and 13 (5) the utility must ensure that customers who are 14 interested in participating are notified that if they are 15 income qualified, they may also be eligible for the 16 Percentage of Income Payment Plan program and free energy 17 improvements through other programs and facilitate 18 interested customers' enrollment in those programs; and 19 provide contact information. 20 (6) coordination with existing utility, state, and 21 federal energy efficiency, solar, electrification, and 22 other energy savings funding and implementation programs. 23 (d) The Commission shall establish Program guidelines with 24 the anticipated schedule of Program availability as follows: 25 (1) Year 1: Beginning in the first year of operation, 26 each utility with greater than 100,000 retail customers is SB3935 - 45 - LRB103 40383 LNS 72670 b SB3935- 46 -LRB103 40383 LNS 72670 b SB3935 - 46 - LRB103 40383 LNS 72670 b SB3935 - 46 - LRB103 40383 LNS 72670 b 1 required to obtain low-cost capital of at least 2 $20,000,000 annually for investments in energy projects. 3 (2) Year 2: Beginning in the second year of operation, 4 each utility with greater than 100,000 retail customers is 5 required to obtain low-cost capital for investments in 6 energy projects of at least $40,000,000 annually. 7 (3) Year 3: Beginning in the third year of operation, 8 each utility with greater than 100,000 retail customers is 9 required to obtain low-cost capital for investments in as 10 many systems as customers demand, subject to available 11 capital provided by the utility, State, or other lenders. 12 (e) In the design of the Program, the Commission shall: 13 (1) Within 90 days after the effective date of this 14 amendatory Act of the 103rd General Assembly, begin a 15 process to update the Program guidelines for 16 implementation of the Program. Any such process shall 17 allow for participation from interested stakeholders. 18 Within 270 days after the effective date of this 19 amendatory Act of the 102nd General Assembly, convene a 20 workshop during which interested participants may discuss 21 issues and submit comments related to the Program. 22 (2) Establish Program guidelines for implementation of 23 the Program in accordance with the Pay As You Save 24 Essential Elements and Minimum Program Requirements that 25 electric and gas utilities must abide by when implementing 26 the Program. Program guidelines established by the SB3935 - 46 - LRB103 40383 LNS 72670 b SB3935- 47 -LRB103 40383 LNS 72670 b SB3935 - 47 - LRB103 40383 LNS 72670 b SB3935 - 47 - LRB103 40383 LNS 72670 b 1 Commission shall include the following elements: 2 (A) The Commission shall establish conditions 3 under which utilities secure capital to fund the 4 energy projects. The Commission may allow utilities to 5 raise capital independently, work with third-party 6 lenders to secure the capital for participants, or a 7 combination thereof. Any process the Commission 8 approves must use a market mechanism to identify the 9 least costly sources of capital funds so as to pass on 10 maximum savings to participants. The State or the 11 Clean Energy Jobs and Justice Fund may also provide 12 capital for the Program. 13 (B) Customer protection guidelines should be 14 designed consistent with Pay As You Save Essential 15 Elements and Minimum Program Requirements. 16 (C) The Commission shall establish conditions by 17 which utilities may connect Program participants to 18 energy project vendors. In setting conditions for 19 connection, the Commission may prioritize vendors that 20 have a history of good relations with the State, 21 including vendors that have hired participants from 22 State-created job training programs. 23 (D) Guarantee that conservative estimates of 24 financial savings will immediately and significantly 25 exceed estimated Program costs for Program 26 participants. SB3935 - 47 - LRB103 40383 LNS 72670 b SB3935- 48 -LRB103 40383 LNS 72670 b SB3935 - 48 - LRB103 40383 LNS 72670 b SB3935 - 48 - LRB103 40383 LNS 72670 b 1 (E) Require any customer data sharing between 2 electric and gas utilities and third-party vendors 3 needed to evaluate the energy and demand saving and 4 energy services revenue opportunities of all customers 5 and otherwise facilitate a positive customer 6 experience. Such data sharing may include but shall 7 not be limited to historical and ongoing customer 8 usage data and billing rates. The Commission may allow 9 utilities to recover the costs associated with data 10 sharing from all customers. 11 (F) Notwithstanding the method used to estimate 12 site-specific energy savings or measure direct energy 13 savings for Program participants, the utility will 14 report aggregate savings to the Commission for 15 regulatory filings in the same or a similar manner as 16 other energy efficiency or clean energy programs. 17 (f) Within 90 120 days after the Commission releases the 18 Program conditions established under this Section, each 19 utility subject to the requirements of this Section shall 20 submit an informational filing to the Commission that 21 describes its plan for implementing the provisions of this 22 Section. If the Commission finds that the submission does not 23 properly comply with the statutory or regulatory requirements 24 of the Program, the Commission may require that the utility 25 make modifications to its filing. 26 (g) An independent process evaluation shall be conducted SB3935 - 48 - LRB103 40383 LNS 72670 b SB3935- 49 -LRB103 40383 LNS 72670 b SB3935 - 49 - LRB103 40383 LNS 72670 b SB3935 - 49 - LRB103 40383 LNS 72670 b 1 after one year of the Program's operation. An independent 2 impact evaluation shall be conducted after 3 years of 3 operation, excluding one-time startup costs and results from 4 the first 12 months of the Program. The Commission shall 5 convene an advisory council of stakeholders, including 6 representation of low-income and environmental justice 7 community members to make recommendations in response to the 8 findings of the independent evaluation. 9 (h) The Program shall be designed using the Pay As You Save 10 system guidelines to be cost-effective for customers. Only 11 projects that are deemed to be cost-effective and can be 12 reasonably expected to ensure customer savings are eligible 13 for funding through the Program, unless, as specified in 14 paragraph (1) of subsection (c), customers able to make 15 upfront copayments to installers buy down the cost of projects 16 so it can be deemed cost-effective. 17 (i) Eligible customers must be: 18 (1) property renters with permission of the property 19 owner; or 20 (2) property owners. 21 (j) The calculation of project cost-effectiveness shall be 22 based upon the Pay As You Save system requirements. 23 (1) The calculation of cost-effectiveness must be 24 conducted by an objective process approved by the 25 Commission and based on rates in effect at the time of 26 installation. SB3935 - 49 - LRB103 40383 LNS 72670 b SB3935- 50 -LRB103 40383 LNS 72670 b SB3935 - 50 - LRB103 40383 LNS 72670 b SB3935 - 50 - LRB103 40383 LNS 72670 b 1 (2) A project shall be considered cost-effective only 2 if it is estimated to produce significant immediate net 3 savings, not counting copayments voluntarily made by 4 customers. The Commission may establish guidelines by 5 which this required savings is estimated. 6 (3) Net savings shall include savings across all fuel 7 sources, not limited to electricity and natural gas. 8 (4) The calculation of project cost-effectiveness 9 shall not exclude projects that: 10 (A) would raise customer costs in a particular 11 month so long as customers see annual project savings; 12 or 13 (B) increase electric load and accompanying costs 14 when a heating electrification project results in the 15 ability to cool part or all of a home that was not 16 previously cooled. In such cases, the increased 17 electricity consumption associated with that added 18 cooling shall not be included in calculations of net 19 savings. Extreme heat poses an increasing risk to 20 Illinois communities. As such, it is in the public 21 interest to mitigate that risk through the addition of 22 building cooling systems. 23 However, any expected increase in electric load and 24 customer costs should be clearly communicated to impacted 25 customers, along with any options for mitigating that 26 increase. SB3935 - 50 - LRB103 40383 LNS 72670 b SB3935- 51 -LRB103 40383 LNS 72670 b SB3935 - 51 - LRB103 40383 LNS 72670 b SB3935 - 51 - LRB103 40383 LNS 72670 b 1 (k) The Program should be modeled after the Pay As You Save 2 system, by which Program participants finance energy projects 3 using the savings that the energy project creates with a 4 tariffed on-bill program. Eligible projects shall not create 5 personal debt for the customer, result in a lien in the event 6 of nonpayment, or require customers to pay monthly charges for 7 any upgrade that fails and is not repaired within 21 days. The 8 utility may restart charges once the upgrade is repaired and 9 functioning and extend the term of payments to recover its 10 costs for missed payments and deferred cost recovery, 11 providing the upgrade continues to function. 12 (l) Any energy project that is defective or damaged due to 13 no fault of the participant must be either replaced or 14 repaired with parts that meet industry standards at the cost 15 of the utility or vendor, as specified by the Commission, and 16 charges shall be suspended until repairs or replacement is 17 completed. The Commission may establish, increase, or replace 18 the requirements imposed in this subsection. The Commission 19 may determine that this responsibility is best handled by 20 participating project vendors in the form of insurance, 21 contractual guarantees, or other mechanisms, and issue rules 22 detailing this requirement. Customers shall not be charged 23 monthly payments for upgrades that are no longer functioning. 24 (m) In the event of nonpayment, the remaining balance due 25 to pay off the system shall remain with the utility meter at an 26 upgraded location. The Commission shall establish conditions SB3935 - 51 - LRB103 40383 LNS 72670 b SB3935- 52 -LRB103 40383 LNS 72670 b SB3935 - 52 - LRB103 40383 LNS 72670 b SB3935 - 52 - LRB103 40383 LNS 72670 b 1 subject to this constraint in the event of nonpayment that are 2 in accordance with the Pay As You Save system. 3 (n) The utility shall make every effort to ensure that 4 customers who are income-qualified for free energy upgrade 5 programs take full advantage of those programs first before 6 using the Equitable Energy Upgrade Program. If the demand by 7 utility customers exceeds the Program capital supply in a 8 given year, utilities shall ensure that 50% of participants 9 are: 10 (1) customers in neighborhoods where a majority of 11 households make 150% or less of area median income; or 12 (2) residents of environmental justice communities. 13 (o) Utilities shall endeavor to inform customers about the 14 availability of the Program, their potential eligibility for 15 participation in the Program, and whether they are likely to 16 save money on the basis of an estimate conducted using 17 variables consistent with the Program that the utility has at 18 its disposal. The Commission may establish guidelines by which 19 utilities must abide by this directive and alternatives if the 20 Commission deems utilities' efforts as inadequate. 21 (p) Subject to Commission specifications under subsection 22 (c), each utility shall work with certified project vendors 23 selected using a request for proposals process to establish 24 the terms and processes under which a utility can install 25 eligible renewable energy generation and energy storage 26 systems using the capital to fit the Equitable Energy Upgrade SB3935 - 52 - LRB103 40383 LNS 72670 b SB3935- 53 -LRB103 40383 LNS 72670 b SB3935 - 53 - LRB103 40383 LNS 72670 b SB3935 - 53 - LRB103 40383 LNS 72670 b 1 model. The utility certified project vendor shall explain and 2 offer the approved upgrades to customers and shall assist 3 customers in applying for financing through the Program. As 4 part of the process, utilities vendors shall also provide 5 participants with information about any other relevant 6 incentives that may be available and customer service 7 regarding the effective use of the upgrades. 8 Nothing shall preclude gas and electric utilities that 9 have overlapping service territories from jointly implementing 10 and delivering the Program. 11 (q) A participating An electric utility shall recover all 12 of the prudently incurred costs of offering a program approved 13 by the Commission under this Section. For investor-owned 14 utilities, shareholder incentives will be proportional to 15 meeting Commission approved thresholds for the number of 16 customers served and the amount of its investments in those 17 locations. 18 (r) The Commission shall adopt all rules necessary for the 19 administration of this Section. 20 (Source: P.A. 102-662, eff. 9-15-21.) 21 (220 ILCS 5/Art. XXIII heading new) 22 ARTICLE XXIII. CLEAN BUILDING HEATING LAW 23 (220 ILCS 5/23-101 new) 24 Sec. 23-101. Short title. This Article may be cited as the SB3935 - 53 - LRB103 40383 LNS 72670 b SB3935- 54 -LRB103 40383 LNS 72670 b SB3935 - 54 - LRB103 40383 LNS 72670 b SB3935 - 54 - LRB103 40383 LNS 72670 b 1 Clean Building Heating Law. References in this Article to 2 "this Act" mean this Article. 3 (220 ILCS 5/23-102 new) 4 Sec. 23-102. Findings. The General Assembly finds that the 5 adoption and use of clean, zero-pollution space and water 6 heating appliances in residential and commercial buildings 7 would benefit the State by (i) protecting the air that 8 Illinoisans breathe through reducing unhealthy levels of smog 9 and ozone, (ii) minimizing health risks associated with air 10 pollution, including respiratory ailments, cardiovascular 11 illnesses, and premature death, which are linked to exposure 12 to fine particulate matter and nitrogen dioxide, (iii) 13 assisting the State in achieving attainment of federal 14 National Ambient Air Quality Standards for ozone and meeting 15 the State's obligations under the federal Regional Haze Rule, 16 (iv) reducing climate pollution in service to the State's 17 net-zero greenhouse gas goals, and (v) contributing to the 18 State's economy through building and mobilizing a trained and 19 competitive workforce to install and maintain newly purchased 20 appliances. 21 (220 ILCS 5/23-103 new) 22 Sec. 23-103. Definitions. As used in this Article: 23 "Annual fuel utilization efficiency" or "AFUE" means the 24 efficiency as defined by Section 4.2.35 of the Code of Federal SB3935 - 54 - LRB103 40383 LNS 72670 b SB3935- 55 -LRB103 40383 LNS 72670 b SB3935 - 55 - LRB103 40383 LNS 72670 b SB3935 - 55 - LRB103 40383 LNS 72670 b 1 Regulations, Title 10, Part 430, Subpart B, Appendix N. 2 "Boiler" or "water heater" means a product used to heat 3 water or produce steam and that is not exclusively used to 4 produce electricity for sale. "Boiler" does not include any 5 waste heat recovery boiler that is used to recover sensible 6 heat from the exhaust of a combustion turbine or any unfired 7 waste heat recovery boiler that is used to recover sensible 8 heat from the exhaust of any combustion equipment. 9 "Btu" means British thermal unit, which is a scientific 10 unit of measurement equal to the quantity of heat required to 11 raise the temperature of one pound of water by one degree 12 Fahrenheit at approximately 60 degrees Fahrenheit. 13 "Director" means the Director of the Environmental 14 Protection Agency or the Director's designee. 15 "Fan-type central furnace" means a self-contained space 16 heater providing for circulation of heated air at pressures 17 other than atmospheric through ducts more than 25 cm (10 in) in 18 length. 19 "Furnace" means a product designed to be a source of 20 interior space heating. 21 "Heat input" means the heat released by the combustion of 22 fuels in a unit based on the higher heating value of fuel, 23 excluding the enthalpy of incoming combustion air. 24 "Heat output" means the product obtained by multiplying 25 the recovery efficiency, as defined by Section 6.1.3 of the 26 Code of Federal Regulation, Title 10, Part 430, Subpart B, SB3935 - 55 - LRB103 40383 LNS 72670 b SB3935- 56 -LRB103 40383 LNS 72670 b SB3935 - 56 - LRB103 40383 LNS 72670 b SB3935 - 56 - LRB103 40383 LNS 72670 b 1 Appendix E, by the input rating of the unit. 2 "NOx" and "NOx emissions" means the sum of nitric oxide and 3 nitrogen dioxide in the unit's flue gas, collectively 4 expressed as nitrogen dioxide. 5 "Rated heat input capacity" means the heat input capacity 6 specified on the nameplate of the combustion unit. If a unit 7 has been altered or modified such that its maximum heat input 8 is different from the heat input capacity specified on the 9 nameplate, the new maximum heat input is the unit's rated heat 10 input capacity. 11 "Useful heat delivered to the heated space" means the 12 annual fuel utilization efficiency (expressed as a fraction) 13 multiplied by the heat input. 14 (220 ILCS 5/23-104 new) 15 Sec. 23-104. Applicability. This Article applies to any 16 person who sells, installs, offers for sale, leases, or offers 17 for lease the following products in this State, as well as any 18 manufacturer who intends to sell or distribute for sale or 19 installation the following products in this State: (i) new 20 water heaters and boilers with a rated heat input capacity of 21 2,000,000 Btus per hour or less; and (ii) new furnaces with a 22 rated heat input capacity of 175,000 Btus per hour or less, 23 and, in the case of combination heating and cooling units, a 24 cooling rate of 65,000 Btus per hour or less. SB3935 - 56 - LRB103 40383 LNS 72670 b SB3935- 57 -LRB103 40383 LNS 72670 b SB3935 - 57 - LRB103 40383 LNS 72670 b SB3935 - 57 - LRB103 40383 LNS 72670 b 1 (220 ILCS 5/23-105 new) 2 Sec. 23-105. Emissions standards for new building heating 3 and water heating appliances. 4 (a) On and after January 1, 2025, a person shall not sell, 5 install, offer for sale, lease, or offer for lease, and a 6 manufacturer shall not sell or distribute for sale or 7 installation, the following new products in this State: 8 (1) water heaters with a rated heat input capacity of 9 75,000 Btus per hour or less, and any water heaters with 10 power assist, that emit more than 10 nanograms of NOx per 11 joule of heat output; 12 (2) water heaters and boilers with a rated heat input 13 capacity from 75,001 to 2,000,000 Btus per hour, 14 inclusive, that emit more than 14 nanograms of NOx per 15 joule of heat output; or 16 (3) fan-type central furnaces with a rated heat input 17 capacity of 175,000 Btus per hour or less that emit more 18 than 14 nanograms of NOx per joule of heat output. 19 (b) On and after January 1, 2030, a person shall not sell, 20 install, offer for sale, lease, or offer for lease, and a 21 manufacturer shall not sell or distribute for sale or 22 installation, the following new products in this State: 23 (1) water heaters and boilers with a rated heat input 24 capacity of 2,000,000 Btus per hour or less that emit more 25 than 0.0 nanograms of NOx per joule of heat output; or 26 (2) furnaces with a rated heat input capacity of SB3935 - 57 - LRB103 40383 LNS 72670 b SB3935- 58 -LRB103 40383 LNS 72670 b SB3935 - 58 - LRB103 40383 LNS 72670 b SB3935 - 58 - LRB103 40383 LNS 72670 b 1 175,000 Btus per hour or less that emit more than 0.0 2 nanograms of NOx per joule of heat output. This includes 3 non-central installations, such as wall furnaces, as well 4 as units installed in non-residential applications. 5 (220 ILCS 5/23-106 new) 6 Sec. 23-106. Certification and identification of compliant 7 products. 8 (a) The manufacturer shall obtain confirmation from an 9 independent testing laboratory that each water heater, boiler, 10 or furnace model that is subject to the requirements of this 11 Article and that the manufacturer intends to sell or 12 distribute for sale or installation into the State has been 13 tested in accordance with the procedures in Section 23-107. 14 This confirmation shall include the following statement signed 15 and dated by the person responsible for the report at the 16 independent testing laboratory: "Based on my inquiry of those 17 individuals with primary responsibility for obtaining the 18 information, I certify that the statements and information in 19 this source test report are to the best of my knowledge and 20 belief true, accurate, and complete. I am aware that there are 21 significant civil and criminal penalties for submitting false 22 statements or information or omitting required statements or 23 information, including the possibility of fine or 24 imprisonment." 25 (b) For each such product model, the manufacturer shall SB3935 - 58 - LRB103 40383 LNS 72670 b SB3935- 59 -LRB103 40383 LNS 72670 b SB3935 - 59 - LRB103 40383 LNS 72670 b SB3935 - 59 - LRB103 40383 LNS 72670 b 1 submit to the Director either of the following: 2 (1) A statement that each product model meets the 3 emission standards set forth in Section 23-105. The 4 statement must: 5 (A) provide the following general information: 6 name and address of manufacturer, brand name, trade 7 name, model number, and rated heat input capacity; 8 (B) provide a description of the model being 9 certified; 10 (C) include a complete certification source test 11 report demonstrating that the product model was tested 12 in accordance with procedures in Section 23-107 and a 13 written statement that the model complies with Section 14 23-105; 15 (D) include the following statement signed and 16 dated by a managerial level employee responsible for 17 the certification request at the manufacturer: "Based 18 on my inquiry of those individuals with primary 19 responsibility for obtaining the information, I 20 certify that the statements and information in this 21 request for certification are to the best of my 22 knowledge and belief true, accurate, and complete. I 23 am aware that there are significant civil and criminal 24 penalties for submitting false statements or 25 information or omitting required statements or 26 information, including the possibility of fine or SB3935 - 59 - LRB103 40383 LNS 72670 b SB3935- 60 -LRB103 40383 LNS 72670 b SB3935 - 60 - LRB103 40383 LNS 72670 b SB3935 - 60 - LRB103 40383 LNS 72670 b 1 imprisonment."; 2 (E) be submitted to the Director no more than 90 3 days after the date of the emissions compliance test 4 conducted in accordance with Section 23-107; and 5 (F) be submitted to the Director no less than 90 6 days before the intention to sell or distribute a new 7 product model within the State or no less than 90 days 8 before the dates described in Section 23-105. 9 (2) An approved South Coast Air Quality Management 10 District (SCAQMD) certification for each product model 11 issued pursuant to SCAQMD Rules 1111, 1121, or 1146.2, to 12 demonstrate compliance with subsection (a) of Section 13 23-105. 14 (c) The manufacturer shall display the model number and 15 the certification status of a product complying with this 16 Article on the shipping carton and rating plate of each unit. 17 (220 ILCS 5/23-107 new) 18 Sec. 23-107. Determination of emissions. Emissions from 19 products subject to the requirements of this Article shall be 20 tested in accordance with the following provisions: 21 (1) Each product model shall receive certification 22 based on emission tests of a randomly selected unit of 23 that model. 24 (2) The measurement of NOx emissions shall be 25 conducted in accordance with EPA Reference Method 7 (40 SB3935 - 60 - LRB103 40383 LNS 72670 b SB3935- 61 -LRB103 40383 LNS 72670 b SB3935 - 61 - LRB103 40383 LNS 72670 b SB3935 - 61 - LRB103 40383 LNS 72670 b 1 CFR Part 60, Appendix A), Test Methods 7A-7E. 2 (3) Each tested water heater shall be operated in 3 accordance with Section 2.4 of American National Standards 4 ANSI Z21.10.1-1990 at normal test pressure, input rates, 5 and with a 5-foot exhaust stack installed during the NOx 6 emissions tests. 7 (4) Each tested furnace shall be operated in 8 accordance with the procedures specified in Section 3.1 of 9 the Code of Federal Regulations, Title 10, Part 430, 10 Subpart B, Appendix N. 11 (5) One of the 2 following formulas shall be used to 12 calculate the NOx emission rate in nanograms of NOx per 13 joule of heat output: 14 N=4.566104PUHCE 15 or 16 N=3.6551010P20.9-YZE 17 Where: 18 N = Calculated mass emissions of NOx per unit of useful 19 heat (nanograms per joule of useful heat delivered to the 20 heated space). 21 P = Measured concentration of NOx in flue gas (parts 22 per million by volume). 23 Y = Measured concentration of O2 in flue gas 24 (percentage by volume). 25 Z = Gross heating value of gas (joules per cubic meter 26 at 0.0 degrees Celsius, 1 atm). SB3935 - 61 - LRB103 40383 LNS 72670 b SB3935- 62 -LRB103 40383 LNS 72670 b SB3935 - 62 - LRB103 40383 LNS 72670 b SB3935 - 62 - LRB103 40383 LNS 72670 b 1 E = AFUE (percentage), as defined in Section 23-103. 2 U = Concentration of CO2 in water-free flue gas for 3 stoichiometric combustion (percentage by volume). 4 H = Gross heating value of the fuel (Btu per cubic 5 foot, 60 degrees Fahrenheit, 30-in Hg). 6 C = Measured concentration of CO2 in flue gas 7 (percentage by volume). 8 (220 ILCS 5/23-108 new) 9 Sec. 23-108. Enforcement and penalties. 10 (a) The Director may require the emission test results to 11 be provided when deemed necessary to verify compliance and may 12 periodically conduct on-site inspections and tests as are 13 deemed necessary to ensure compliance. Such verifications 14 shall be conducted at least once within 2 years of the date 15 described in subsection (a) of Section 23-105 and again at 16 least once every 5 years thereafter. 17 (b) If the Director determines that a manufacturer, 18 distributor, retailer, installer, or other person is in 19 violation of any provision of this Act, that violation is 20 subject to fines and penalties according to the Director's 21 authority. 22 (c) For purposes of this Section, fines or penalties may 23 be levied against an installer who installs a product covered 24 by this Article in violation of this Article, however they 25 shall not be levied against such installer's nonmanagerial SB3935 - 62 - LRB103 40383 LNS 72670 b SB3935- 63 -LRB103 40383 LNS 72670 b SB3935 - 63 - LRB103 40383 LNS 72670 b SB3935 - 63 - LRB103 40383 LNS 72670 b 1 employees, if any, who perform such installation. 2 (d) Fines and penalties collected under this Section may 3 be used for supplemental environmental programs to offset the 4 cost of furnace and water heater replacements in low-income 5 and moderate-income households or households in environmental 6 justice communities, according to the Director's authority to 7 use fines and penalties. 8 (e) On or before the date described in subsection (a) of 9 Section 23-105, the Director shall establish a process whereby 10 individuals may anonymously report potential violations of 11 this Act. The Director shall investigate any such reported 12 potential violations. 13 (220 ILCS 5/23-109 new) 14 Sec. 23-109. Additional regulation. The Director may adopt 15 rules as necessary to ensure the proper implementation and 16 enforcement of this Article. 17 (220 ILCS 5/23-111 new) 18 Sec. 23-111. Revisions to building codes to comply with 19 greenhouse gas emissions reduction requirements. 20 (a) Beginning no later than July 1, 2025, to support the 21 State's achievement of its greenhouse gas emissions 22 requirements and to improve public health outcomes, the State 23 building code shall require that the site energy use intensity 24 between minimally compliant but otherwise similar buildings of SB3935 - 63 - LRB103 40383 LNS 72670 b SB3935- 64 -LRB103 40383 LNS 72670 b SB3935 - 64 - LRB103 40383 LNS 72670 b SB3935 - 64 - LRB103 40383 LNS 72670 b 1 differing fuel types shall not be significantly unequal in all 2 new construction statewide. Beginning no later than July 1, 3 2025, to the fullest extent feasible, the building code shall 4 require that any area or service within a project where 5 infrastructure, building systems, or equipment used for the 6 combustion of fossil fuels are installed must be all-electric 7 ready. 8 (b) Requirements for all-electric ready new construction 9 for residential buildings shall include: 10 (1) a heat pump space heater ready. Systems using gas 11 or propane furnaces to serve individual dwelling units 12 shall include the following: 13 (A) a dedicated 240 volt branch circuit wiring 14 shall be installed within 3 feet from the furnace and 15 accessible to the furnace with no obstructions. The 16 branch circuit conductors shall be rated at 30 amps 17 minimum. The blank cover shall be identified as "240V 18 ready"; and 19 (B) the main electrical service panel shall have a 20 reserved space to allow for the installation of a 21 double pole circuit breaker for a future heat pump 22 space heater installation. The reserved space shall be 23 permanently marked as "For Future 240V use"; 24 (2) an electric cooktop ready. Systems using gas or 25 propane cooktops to serve individual dwelling units shall 26 include the following: SB3935 - 64 - LRB103 40383 LNS 72670 b SB3935- 65 -LRB103 40383 LNS 72670 b SB3935 - 65 - LRB103 40383 LNS 72670 b SB3935 - 65 - LRB103 40383 LNS 72670 b 1 (A) a dedicated 240 volt branch circuit wiring 2 shall be installed within 3 feet from the cooktop and 3 accessible to the cooktop with no obstructions. The 4 branch circuit conductors shall be rated at 50 amps 5 minimum. The blank cover shall be identified as "240V 6 ready"; and 7 (B) the main electrical service panel shall have a 8 reserved space to allow for the installation of a 9 double pole circuit breaker for a future electric 10 cooktop installation. The reserved space shall be 11 permanently marked as "For Future 240V Use"; 12 (3) an electric clothes dryer ready. Clothes dryer 13 locations with gas or propane plumbing shall include the 14 following: 15 (A) systems serving individual dwelling units 16 shall include: 17 (i) a dedicated 240 volt branch circuit wiring 18 shall be installed within 3 feet from the clothes 19 dryer location and accessible to the clothes dryer 20 location with no obstructions. The branch circuit 21 conductors shall be rated at 30 amps minimum. The 22 blank cover shall be identified as "240V ready"; 23 and 24 (ii) the main electrical service panel shall 25 have a reserved space to allow for the 26 installation of a double pole circuit breaker for SB3935 - 65 - LRB103 40383 LNS 72670 b SB3935- 66 -LRB103 40383 LNS 72670 b SB3935 - 66 - LRB103 40383 LNS 72670 b SB3935 - 66 - LRB103 40383 LNS 72670 b 1 a future electric clothes dryer installation. The 2 reserved space shall be permanently marked as "For 3 Future 240V Use"; and 4 (B) systems in common use areas shall include 5 conductors or raceway shall be installed with 6 termination points at the main electrical panel, via 7 subpanels if applicable, to a location no more than 3 8 feet from each gas outlet or a designated location of 9 future electric replacement equipment. Both ends of 10 the conductors or raceway shall be labeled "Future 11 240V Use". The conductors or raceway and any 12 intervening subpanels, panelboards, switchboards, and 13 busbars shall be sized to meet the future electric 14 power requirements, at the service voltage to the 15 point at which the conductors serving the building 16 connect to the utility distribution system. The 17 capacity requirements may be adjusted for demand 18 factors. Gas flow rates shall be determined in 19 accordance with State plumbing code. Capacity shall be 20 one of the following: 21 (i) 0.24 amps at 208/240 volts per clothes 22 dryer; 23 (ii) 2.6 kVA for each 10,000 Btu per hour of 24 rated gas input or gas pipe capacity; or 25 (iii) the electrical power required to provide 26 equivalent functionality of the gas-powered SB3935 - 66 - LRB103 40383 LNS 72670 b SB3935- 67 -LRB103 40383 LNS 72670 b SB3935 - 67 - LRB103 40383 LNS 72670 b SB3935 - 67 - LRB103 40383 LNS 72670 b 1 equipment as calculated and documented by the 2 responsible person associated with the project; 3 and 4 (4) a heat pump water heater ready. Systems using gas 5 or propane service water heaters to serve individual 6 dwelling units shall include the following: 7 (A) a dedicated 240 volt branch circuit wiring 8 shall be installed within 3 feet from the furnace and 9 accessible to the furnace with no obstructions. The 10 branch circuit conductors shall be rated at 30 amps 11 minimum. The blank cover shall be identified as "240V 12 ready"; 13 (B) the main electrical service panel shall have a 14 reserved space to allow for the installation of a 15 double pole circuit breaker for a future heat pump 16 water heater installation. The reserved space shall be 17 permanently marked as "For Future 240V use"; and 18 (C) an indoor space that is at least 3 feet by 3 19 feet by 7 feet high shall be available surrounding or 20 within 3 feet of the installed water heater, except 21 where a tankless water heater is installed. 22 (c) Newly constructed commercial buildings shall meet the 23 requirements of Appendix CH of the 2024 version of the 24 International Energy Conservation Code. 25 (d) Beginning no later than January 1, 2026, the State 26 building code must include a prescriptive requirement for SB3935 - 67 - LRB103 40383 LNS 72670 b SB3935- 68 -LRB103 40383 LNS 72670 b SB3935 - 68 - LRB103 40383 LNS 72670 b SB3935 - 68 - LRB103 40383 LNS 72670 b 1 central air conditioning systems that are being removed due to 2 equipment failure or as part of a larger renovation project, 3 that they must be replaced with a heat pump capable of both 4 heating and cooling in accordance with the following 5 requirements: 6 (1) Requirements for residential buildings: 7 (A) If an existing central air conditioner is 8 removed from a natural gas, propane, or fuel oil 9 forced air system that is to remain in place, the 10 replacement heat pump must be sized to meet the 11 cooling load of the home with controls allowing the 12 heat pump to provide the primary heating and furnace 13 as "backup" heating. 14 (B) If an existing central air conditioner is 15 connected to a natural gas, propane, or fuel oil 16 forced air system that is to also be replaced, the 17 replacement heat pump must be sized to meet all loads 18 of the home. Exceptions may be given for replacement 19 systems that require the main electrical service panel 20 to be upgraded. 21 (C) If an existing central air conditioner and its 22 accompanying ductwork are replaced, the replacement 23 heat pump must be sized to meet all loads of the home. 24 (2) Requirements for commercial buildings: If an 25 existing rooftop packaged unit is removed, the replacement 26 unit must be a heat pump. This requirement only applies to SB3935 - 68 - LRB103 40383 LNS 72670 b SB3935- 69 -LRB103 40383 LNS 72670 b SB3935 - 69 - LRB103 40383 LNS 72670 b SB3935 - 69 - LRB103 40383 LNS 72670 b 1 existing rooftop packaged units that are 65,000 Btu/h or 2 less. Exceptions may be given for replacement systems that 3 require the main electrical service panel to be upgraded. 4 (220 ILCS 5/23-112 new) 5 Sec. 23-112. Revisions to gas service line extensions to 6 comply with greenhouse gas emissions reduction requirements. 7 (a) To support the State's achievement of its greenhouse 8 gas emissions requirements, and to improve public health 9 outcomes, no gas company may furnish or supply gas service, 10 instrumentalities, and facilities to any commercial or 11 residential location that did not receive gas service or did 12 not file applications for gas service on or before June 30, 13 2027. 14 (b) The following locations are exempt from the 15 requirements of subsection (a): 16 (1) buildings that require gas systems for emergency 17 backup power; and 18 (2) buildings specifically designated for occupancy by 19 a commercial food establishment, laboratory, laundromat, 20 hospital, or crematorium. 21 (220 ILCS 5/23-301 new) 22 Sec. 23-301. Severability. If any provision of this 23 Article or the application of this Article to any person or 24 circumstance is held invalid, such invalidity does not affect SB3935 - 69 - LRB103 40383 LNS 72670 b SB3935- 70 -LRB103 40383 LNS 72670 b SB3935 - 70 - LRB103 40383 LNS 72670 b SB3935 - 70 - LRB103 40383 LNS 72670 b 1 other provisions or applications of the Article that can be 2 given effect without the invalid provision or application, and 3 to this end the provisions of this Article are declared to be 4 severable. 5 (220 ILCS 5/Art. XXIV heading new) 6 ARTICLE XXIV. 2050 HEAT DECARBONIZATION STANDARD 7 (220 ILCS 5/24-101 new) 8 Sec. 24-101. Legislative policy. To provide the highest 9 quality of life for the residents of this State and to provide 10 for a clean and healthy environment, it is the policy of this 11 State that natural gas utilities, otherwise referred to as 12 "obligated parties", shall transition to 100% zero emissions 13 by 2050. Under the heat decarbonization standard, each gas 14 utility has an annual obligation, beginning in 2030, to reduce 15 the greenhouse gas emissions resulting from the combustion of 16 the fuels it delivers to its customers. The emission reduction 17 obligation for 2030 shall be 20% relative to each utility's 18 2020 greenhouse gas emissions levels on a weather-normalized 19 basis. The emission reduction obligation shall grow by 4 20 percentage points per year every year thereafter, such that 21 the annual emission reduction requirement will reach 24% in 22 2031, 28% in 2032, 32% in 2033, 36% in 2034, 40% by 2035, 44% 23 by 2036, 48% by 2037, 52% by 2038, 56% by 2039, 60% by 2040, 24 64% by 2041, 68% by 2042, 72% by 2043, 76% by 2044, 80% by SB3935 - 70 - LRB103 40383 LNS 72670 b SB3935- 71 -LRB103 40383 LNS 72670 b SB3935 - 71 - LRB103 40383 LNS 72670 b SB3935 - 71 - LRB103 40383 LNS 72670 b 1 2045, 84% by 2046, 88% by 2047, 92% by 2048, 96% by 2049, and 2 100% by 2050. This obligation shall be referred to as the "heat 3 decarbonization standard". The heat decarbonization standard 4 must be met by the lowest societal cost combination of supply 5 and demand-side resources. References in this Article to "this 6 Act" means this Article. 7 (220 ILCS 5/24-102 new) 8 Sec. 24-102. Options for compliance. 9 (a) Obligated parties must demonstrate compliance with the 10 heat decarbonization standard using a combination of: 11 (1) emission reductions achieved from the obligated 12 parties' own customers; and 13 (2) clean heat credits purchased from other gas 14 utilities that are also obligated parties in this State. 15 (b) Prior to 2035, at least 70% of each obligated party's 16 emission reduction obligation must be met through emission 17 reductions achieved from its own customers, with no more than 18 30% of the emission reduction obligation in any year met 19 through the purchase of clean heat credits. From 2035 through 20 2040, at least 80% of each obligated party's emission 21 reduction requirement must be met through emission reductions 22 from its own customers, with no more than 20% met through the 23 purchase of clean heat credits. After 2040, at least 90% of 24 each obligated party's emission reduction requirement must be 25 met through emission reductions achieved from its own SB3935 - 71 - LRB103 40383 LNS 72670 b SB3935- 72 -LRB103 40383 LNS 72670 b SB3935 - 72 - LRB103 40383 LNS 72670 b SB3935 - 72 - LRB103 40383 LNS 72670 b 1 customers, with no more than 10% met through the purchase of 2 clean heat credits. 3 (220 ILCS 5/24-103 new) 4 Sec. 24-103. Measures for customer emission reduction. 5 Emissions must be achieved through improvements in customers' 6 energy conservation practices, improvements in customers' 7 end-use efficiency, full or partial electrification of any end 8 use, or switching from fossil methane to lower-emitting liquid 9 or gaseous fuels that are delivered by the obligated party and 10 directly consumed by end-use customers at the customers' homes 11 or businesses. Lower-emitting liquid or gaseous fuels may 12 include biomethane, but lower-emitting liquid or gaseous fuels 13 may not include hydrogen except for industrial applications. 14 For emission reductions from lower-emitting liquid or gaseous 15 fuels to be counted toward an obligated party's emission 16 reduction obligation, the obligated party must both acquire 17 the lower-emitting fuel, including its environmental 18 attributes, and demonstrate a contractual pathway for the 19 physical delivery of the fuel from the point of injection into 20 a pipeline to the obligated party's delivery system. Gas 21 utilities may not use reductions in emissions from sources 22 unrelated to combustion of fossil gas at customers' homes and 23 businesses in this State as emissions offsets or alternatives 24 to reductions in the customers' own emissions. 25 Obligated parties must meet the heat decarbonization SB3935 - 72 - LRB103 40383 LNS 72670 b SB3935- 73 -LRB103 40383 LNS 72670 b SB3935 - 73 - LRB103 40383 LNS 72670 b SB3935 - 73 - LRB103 40383 LNS 72670 b 1 standard with the lowest societal cost combination of 2 resources, where societal cost includes infrastructure costs, 3 utility return on capital, the social cost of greenhouse gas 4 emissions and leakage, and the cost of health impacts 5 attributable to pollution from a given measure. 6 (220 ILCS 5/24-104 new) 7 Sec. 24-104. Demonstrating customer emission reductions. 8 (a) Each obligated party's emissions in each year shall be 9 calculated as: 10 (1) a weather-normalized estimate of emissions from 11 the actual amount of fossil methane consumed by its 12 customers in the year, plus; 13 (2) a weather-normalized estimate of emissions from 14 the leakage of methane, hydrogen, or other greenhouse 15 gases from front or behind-the-meter sources in a given 16 year, plus; 17 (3) a weather-normalized estimate of the magnitude of 18 remaining emissions resulting from switching from fossil 19 methane to lower-emitting liquid or gaseous fuels that are 20 delivered by the obligated party and directly consumed by 21 customers at the customers' homes or businesses in the 22 year. The magnitude of remaining emissions resulting from 23 switching from fossil methane to lower-emitting liquid or 24 gaseous fuels shall be calculated as (i) the magnitude of 25 emissions that would have occurred had fossil methane SB3935 - 73 - LRB103 40383 LNS 72670 b SB3935- 74 -LRB103 40383 LNS 72670 b SB3935 - 74 - LRB103 40383 LNS 72670 b SB3935 - 74 - LRB103 40383 LNS 72670 b 1 continued to be consumed, multiplied by (ii) one minus the 2 percent reduction in life cycle emissions resulting from 3 the fuel substitution. Life cycle emission calculations 4 shall account for emissions associated with the entire 5 pathway of a fuel, including extraction, production, 6 transportation, distribution, and combustion of the fuel 7 by the consumer. 8 (b) Obligated parties shall calculate these figures 9 annually, and electronically submit the figures in an easily 10 accessible digital format, such as .PDF, .DOCX, or XLSX, to 11 the Environmental Protection Agency, the Commission, the 12 Governor, and the General Assembly. 13 (c) The Environmental Protection Agency shall post these 14 figures for each utility on a website readily accessible to 15 the public, within 30 days of obligated parties submitting the 16 figures to the Agency, and shall maintain all previous years' 17 records for similar public access. 18 (d) The Environmental Protection Agency shall also assess 19 the emissions figures submitted by obligated parties to assess 20 those parties' compliance or lack thereof with the heat 21 decarbonization standard. If an obligated party does not 22 comply, the obligated party shall be subject to enforcement 23 mechanisms described in Section 24-108. 24 (220 ILCS 5/24-105 new) 25 Sec. 24-105. Tradable clean heat credits. A tradable clean SB3935 - 74 - LRB103 40383 LNS 72670 b SB3935- 75 -LRB103 40383 LNS 72670 b SB3935 - 75 - LRB103 40383 LNS 72670 b SB3935 - 75 - LRB103 40383 LNS 72670 b 1 heat credit is a tradable, intangible commodity that 2 represents an amount of greenhouse gas reduction, measured in 3 tons of CO2, achieved by a gas utility from its customers in 4 this State. An obligated party must achieve excess emission 5 reductions, over and above its annual obligation, to sell 6 tradable clean heat credits to another obligated party. The 7 number of tradable clean heat credits sold by an obligated 8 party in any year may not exceed the magnitude of the obligated 9 party's excess emission reductions in that year. 10 (220 ILCS 5/24-106 new) 11 Sec. 24-106. Banking of emission reductions. An obligated 12 party that achieves emission reductions in a given year that 13 are in excess of its emission reduction obligation in that 14 year may, in lieu of selling them to another obligated party, 15 bank them. Emission reductions that are banked in a given year 16 may be used to comply with emission reduction obligations in 17 any of the following 3 years. Excess emission reductions may 18 not be banked for more than 3 years or used as part of an 19 obligated party's annual compliance more than 3 years after 20 they were generated. No obligated party may achieve more than 21 20% of any annual emission reduction obligation using banked 22 emission reductions. 23 (220 ILCS 5/24-107 new) 24 Sec. 24-107. Equity in emission reductions. SB3935 - 75 - LRB103 40383 LNS 72670 b SB3935- 76 -LRB103 40383 LNS 72670 b SB3935 - 76 - LRB103 40383 LNS 72670 b SB3935 - 76 - LRB103 40383 LNS 72670 b 1 (a) As used in this Section: 2 "Equity investment eligible communities" has the meaning 3 given to that term in the Energy Transition Act. 4 "Income-qualified households" means those households whose 5 annual incomes are at or below 80% of the area median income. 6 (b) Each obligated party must achieve real emission 7 reductions from income-qualified households and environmental 8 justice communities that are at least 5 percentage points 9 greater than a proportional percentage of the annual gas 10 consumption of such customers multiplied by each obligated 11 party's annual emissions reduction requirements. At least half 12 of the emission reductions from equity investment eligible 13 communities shall be from measures that require capital 14 investments in homes, have expected lives of at least 10 15 years, and are estimated to lower annual energy bills. 16 Emission reductions in equity investment eligible communities 17 shall include codelivery and coordinated implementation of all 18 relevant programs, measures, and complementary services. This 19 includes, but is not limited to, pairing high efficiency 20 electrification measures and programs with energy efficiency, 21 building envelope improvements, the Illinois Solar for All 22 Program, energy assistance, health and safety improvements, 23 and federal incentives targeted to disadvantaged communities. 24 Emission reductions from income-qualified and environmental 25 justice communities, including efforts to codeliver and 26 coordinate other programs and services, shall be reported on SB3935 - 76 - LRB103 40383 LNS 72670 b SB3935- 77 -LRB103 40383 LNS 72670 b SB3935 - 77 - LRB103 40383 LNS 72670 b SB3935 - 77 - LRB103 40383 LNS 72670 b 1 at least annually to the Commission. Tradable clean heat 2 credits cannot be used to fulfill this requirement. 3 (220 ILCS 5/24-108 new) 4 Sec. 24-108. Enforcement. 5 (a) The Commission shall order an obligated party that 6 fails to achieve its emission reduction obligation in a given 7 year, including required amounts from income-qualified 8 customers and front-line communities, to make a noncompliance 9 payment. The noncompliance payment shall be equal to 3 times 10 the estimated cost per unit of emission reduction incurred by 11 all obligated parties in the State for the emission reductions 12 the obligated parties achieved in the prior year. 13 (b) The Commission may waive the noncompliance payment if: 14 (1) it finds that the obligated party made a good 15 faith effort to achieve the required amount of emission 16 reduction and its failure to achieve the required 17 reduction resulted from market factors beyond its control, 18 that could not have reasonably been anticipated, and for 19 which the obligated party could not have planned; and 20 (2) it directs the obligated party to add the 21 difference between its obligated level of emission 22 reduction and actual emission reduction achieved to its 23 required emission reduction amount in subsequent years, 24 with the shortfall being made up in no more than 3 years. 25 (c) Payments received pursuant to the noncompliance SB3935 - 77 - LRB103 40383 LNS 72670 b SB3935- 78 -LRB103 40383 LNS 72670 b SB3935 - 78 - LRB103 40383 LNS 72670 b SB3935 - 78 - LRB103 40383 LNS 72670 b 1 penalty shall be directed to the Commission. 2 (d) The Commission shall use any noncompliance payments to 3 contract with an independent third party to achieve emission 4 reductions in the service territory of the noncomplying 5 utility. The Commission shall prioritize achieving such 6 reductions from weatherization or electrification of 7 income-qualified households, to the extent that such 8 reductions would lower annual energy bills. 9 (220 ILCS 5/24-109 new) 10 Sec. 24-109. 2050 Heat Decarbonization Pathways Study. 11 (a) In order to ensure sufficient planning for achieving 12 this goal, the Commission shall complete a 2050 Heat 13 Decarbonization Pathways Study by June 1, 2025, to examine 14 feasible and practical pathways for investor-owned natural gas 15 utilities to achieve the State's decarbonization requirement 16 to be net zero by 2050, and the impacts of decarbonization on 17 customers and the electric and natural gas utilities that 18 serve the customers. 19 (b) The Commission shall host the study in collaboration 20 with a technical working group whose members are appointed by 21 the Governor and a consultant selected by the technical 22 working group. The Commission and technical working group 23 shall host a public process for stakeholder input regarding 24 (i) the proposed scope of the study, (ii) initial draft 25 assumptions for the study, (iii) draft study results, and (iv) SB3935 - 78 - LRB103 40383 LNS 72670 b SB3935- 79 -LRB103 40383 LNS 72670 b SB3935 - 79 - LRB103 40383 LNS 72670 b SB3935 - 79 - LRB103 40383 LNS 72670 b 1 the draft study report. The technical working group shall 2 consist of the following members: 3 (1) one representative of natural gas utilities; 4 (2) one representative of electric utilities; 5 (3) the chair of the Commission, or the chair's 6 designee; 7 (4) one representative of the Office of 8 Decarbonization Planning within the Illinois Commerce 9 Commission; 10 (5) one representative of the Environmental Protection 11 Agency; 12 (6) one representative of an environmental advocacy 13 group; 14 (7) one representative of a labor organization; 15 (8) one representative of commercial and industrial 16 gas customers; 17 (9) one representative of an organization that 18 represents residential ratepayer advocates; 19 (10) one representative of a group that represents 20 environmental justice or front-line communities; 21 (11) one representative of a group that represents 22 low-income residents; 23 (12) one representative of an organization that 24 focuses on access to and promotion of energy efficiency; 25 and 26 (13) one climate scientist from a national laboratory SB3935 - 79 - LRB103 40383 LNS 72670 b SB3935- 80 -LRB103 40383 LNS 72670 b SB3935 - 80 - LRB103 40383 LNS 72670 b SB3935 - 80 - LRB103 40383 LNS 72670 b 1 or institution of higher education in the State. 2 (c) The 2050 Heat Decarbonization Pathways Study shall 3 consider: 4 (1) future clean heating strategies for residential, 5 commercial, and industrial customers, including 6 electrification, geothermal heat and thermal networks, and 7 energy efficiency that would comply with each gas 8 utility's obligation under the heat decarbonization 9 standard; 10 (2) a comparative assessment of the marginal 11 greenhouse gas abatement cost curve of resources and 12 technologies, including electrification, that are 13 available for helping the utility meet its heat 14 decarbonization standard requirements; 15 (3) how a reduction in natural gas and other 16 utility-delivered gaseous fuels throughput will impact 17 customer gas and electric rates, considering various price 18 scenarios for electricity, natural gas, and other gaseous 19 fuels and reference medium and high electrification 20 scenarios; 21 (4) strategies to ensure equitable prioritization of 22 decarbonization measures and programs in income-qualified 23 and environmental justice communities while minimizing 24 energy transition costs on ratepayers, with an emphasis on 25 an accessible and affordable transition for low-income 26 residents, fixed-income residents, and residents within SB3935 - 80 - LRB103 40383 LNS 72670 b SB3935- 81 -LRB103 40383 LNS 72670 b SB3935 - 81 - LRB103 40383 LNS 72670 b SB3935 - 81 - LRB103 40383 LNS 72670 b 1 equity investment eligible communities; 2 (5) an assessment of demand-side resource potential, 3 including load management, energy efficiency, 4 conservation, demand response, and fuel switching, 5 including electrification, available federal, State, 6 county, local, and private incentives, or financing 7 options related to building electrification and 8 efficiency; 9 (6) that the federal incentives analysis must include 10 ways that investor-owned utilities can leverage rebates 11 and tax incentives in the Inflation Reduction Act and 12 Infrastructure Investment and Jobs Act; in addition, the 13 assessment must include ways for the investor-owned 14 utilities to maximize low-income qualified households' 15 participation in the electrification incentive programs; 16 (7) the impacts of building and vehicle 17 electrification on the electric grid and strategies to 18 integrate gas and electric system planning and resource 19 optimization; 20 (8) specific natural gas end uses that may be suitable 21 for the use of alternative fuels, such as biomethane and 22 green hydrogen, and an assessment of the natural gas end 23 uses' commercial availability, social cost, and life cycle 24 emissions; 25 (9) a comparative evaluation of the cost of natural 26 gas purchasing strategies, storage options, delivery SB3935 - 81 - LRB103 40383 LNS 72670 b SB3935- 82 -LRB103 40383 LNS 72670 b SB3935 - 82 - LRB103 40383 LNS 72670 b SB3935 - 82 - LRB103 40383 LNS 72670 b 1 resources, and improvements in demand-side resources using 2 a consistent method to calculate cost-effectiveness; and 3 (10) an evaluation of employment metrics associated 4 with each alternative, including a projection of gas 5 distribution jobs affected by a given alternative and jobs 6 made available through the alternative, a description of 7 opportunities to transition any affected gas distribution 8 jobs to the alternative, and an explanation of how 9 employment impacts associated with each alternative could 10 affect equity investment eligible communities. Given its 11 findings, the study will create a Just Transition Plan, 12 inclusive of funding needs, for the current gas workforce. 13 (d) The Chair of the Commission, or the Chair's designee, 14 will also serve as the Chair of the Technical Working Group. 15 (220 ILCS 5/24-110 new) 16 Sec. 24-110. Gas infrastructure planning. 17 (a) This Article creates the Office of Decarbonization 18 Planning within the Commission to manage an iterative 19 statewide heat decarbonization plan located within the 20 Commission. On a timeline concurrent with the 2050 Heat 21 Decarbonization Pathways Study, the Office of Decarbonization 22 Planning shall adopt rules for implementing the heat 23 decarbonization plans. 24 (b) As used in this Section: 25 "Environmental justice communities" has the meaning given SB3935 - 82 - LRB103 40383 LNS 72670 b SB3935- 83 -LRB103 40383 LNS 72670 b SB3935 - 83 - LRB103 40383 LNS 72670 b SB3935 - 83 - LRB103 40383 LNS 72670 b 1 to that term in the Illinois Power Agency Act. 2 "Lowest reasonable cost" means the least-cost, least-risk 3 mix of demand-side, supply-side, and electrification resources 4 determined through a detailed and consistent analysis of a 5 wide range of commercially available sources. At a minimum, 6 this analysis must consider resource costs, resource 7 availability, market-volatility risks, the risks imposed on 8 ratepayers, resource effect on system operations, public 9 policies regarding resource preferences, the cost of risks 10 associated with environmental effects, including emissions of 11 carbon dioxide, the ability to scale to meet 2050 goals, air 12 pollution and resulting public health impacts, equity impacts, 13 and the need for security of supply. 14 "Planned project" means any programmatic expense or 15 related group of programmatic expenses with a defined scope of 16 work and associated cost estimate that exceeds $1,000,000 in 17 2020 dollars or $500,000 in 2020 dollars for gas utilities 18 with less than 50,000 full service customers, as adjusted 19 annually for inflation. 20 "Resources" means both demand-side and supply-side 21 resources, including, but not limited to, natural gas, 22 biomethane, green hydrogen for industrial application, 23 conservation, energy efficiency, demand response, and 24 electrification. 25 (c) Each natural gas utility regulated by the Commission 26 has the responsibility to meet system demand and public policy SB3935 - 83 - LRB103 40383 LNS 72670 b SB3935- 84 -LRB103 40383 LNS 72670 b SB3935 - 84 - LRB103 40383 LNS 72670 b SB3935 - 84 - LRB103 40383 LNS 72670 b 1 requirements, including the State's heat decarbonization 2 standard, with the lowest reasonable cost and most feasible 3 mix of resources. In furtherance of that responsibility, each 4 natural gas utility must develop a gas infrastructure plan for 5 meeting the utility's heat decarbonization standard, including 6 5-year interim milestones from 2025 until 2050. The gas 7 infrastructure plan must take into account the findings of the 8 2050 Heat Decarbonization Pathways Study. 9 (d) Natural gas utilities shall file biennial gas 10 infrastructure plans that create alignment between gas utility 11 distribution system investments and the utility's heat 12 decarbonization standard obligations at lowest reasonable cost 13 and that consider nonpipeline infrastructure projects that 14 minimize costs over the long term. 15 (e) Before the filing of each biennial gas infrastructure 16 plan, the Office of Decarbonization Planning shall contract 17 for gas demand forecasts for each regulated gas utility in the 18 State from an independent party. Gas utilities must reasonably 19 provide accurate and timely system data to the independent 20 contractor selected to conduct the forecasts. For each 21 regulated gas utility in the State, the third party must 22 produce forecasts for each customer class that consider slow, 23 medium, and rapid acceleration of residential, commercial, and 24 industrial electrification of the end uses that rely upon the 25 direct combustion of natural gas in buildings. The forecasts 26 must include, to the extent possible, the effects of updated SB3935 - 84 - LRB103 40383 LNS 72670 b SB3935- 85 -LRB103 40383 LNS 72670 b SB3935 - 85 - LRB103 40383 LNS 72670 b SB3935 - 85 - LRB103 40383 LNS 72670 b 1 State and local building codes, changes to the number of gas 2 utility customers, consumer responses to building 3 electrification programs or incentives offered within a gas 4 utility's service territory, the price elasticity of gas 5 demand if rates increase due to reduced gas throughput and the 6 impacts of commodity prices, and any other criteria as 7 stipulated by the Commission. The forecasts shall be due to 8 the Commission and the gas utilities at least 8 months prior to 9 the filing of a gas infrastructure plan. 10 (f) A gas infrastructure plan must: 11 (1) cover the 20 years immediately following the 12 approval of the plan with a 5-year action plan of 13 investments; 14 (2) provide the estimated total cost and annual 15 incremental revenue requirements of the proposed action 16 plan, assuming both conventional depreciation and 17 accelerated depreciation, as applicable; 18 (3) use the various gas demand forecasts provided to 19 it under this article and include a range of possible 20 future scenarios and input sensitivities for the purpose 21 of testing the robustness of the utility's portfolio of 22 planned projects under various parameters; 23 (4) take into account the findings of the 2050 Heat 24 Decarbonization Pathways Study; 25 (5) demonstrate that the utility's infrastructure 26 investment plans align with obligations under the heat SB3935 - 85 - LRB103 40383 LNS 72670 b SB3935- 86 -LRB103 40383 LNS 72670 b SB3935 - 86 - LRB103 40383 LNS 72670 b SB3935 - 86 - LRB103 40383 LNS 72670 b 1 decarbonization standard; 2 (6) include a list of all proposed system expenditures 3 and investments, including an analysis of infrastructure 4 needs and detailed information on all planned projects 5 within the action plan; 6 (7) include the results of nonpipeline alternative 7 analyses conducted for all planned projects not necessary 8 to mitigate a near-term safety or reliability risk subject 9 to rules by the Commission that include, but are not 10 limited to: 11 (A) a consideration of both supply and demand-side 12 alternatives to traditional capital investments, 13 including gas demand response and electrification; and 14 (B) a cost-benefit analysis of the various options 15 that consider non-energy benefits and the societal 16 value, including health benefits, of reduced carbon 17 emissions and surface-level pollutants, particularly 18 in equity investment eligible communities; 19 (8) minimize rate impacts on customers, particularly 20 low-income households and households within equity 21 investment eligible communities; 22 (9) describe the methodology, criteria, and 23 assumptions used to develop the plan; 24 (10) include one or more system maps indicating 25 locations of individual planned projects, pressure 26 districts served by the individual project, locations of SB3935 - 86 - LRB103 40383 LNS 72670 b SB3935- 87 -LRB103 40383 LNS 72670 b SB3935 - 87 - LRB103 40383 LNS 72670 b SB3935 - 87 - LRB103 40383 LNS 72670 b 1 equity investment eligible communities, and any other 2 information as required by the Commission; 3 (11) provide a summary of stakeholder participation 4 and input from a public stakeholder process, and an 5 explanation of how input was incorporated into the plan, 6 including for all projects located within equity 7 investment eligible communities, a description of its 8 outreach to members of that community and findings from 9 those efforts; and 10 (12) requires the utility, to the extent that the 11 utility assumes the use of alternative fuels, such as 12 biomethane or green hydrogen, to meet its obligations 13 under the heat decarbonization standard, to demonstrate a 14 plan to procure firm supply and cost-effectiveness as 15 compared to nonfuel alternatives, inclusive of the costs 16 to retrofit all public and private infrastructure to 17 accommodate the fuels; green hydrogen may only be used for 18 industrial applications; hydrogen blending with methane 19 shall not be part of decarbonization plans. 20 (g) Not later than 12 months before the due date of a plan, 21 the utility must provide a work plan for the Commission to 22 review. The work plan must outline the content of the resource 23 plan to be developed by the utility, the method for assessing 24 potential resources, and the timing and extent of public 25 participation. In addition, the Commission will hear comments 26 on the plan at a minimum of 3 public hearings, held at times SB3935 - 87 - LRB103 40383 LNS 72670 b SB3935- 88 -LRB103 40383 LNS 72670 b SB3935 - 88 - LRB103 40383 LNS 72670 b SB3935 - 88 - LRB103 40383 LNS 72670 b 1 and locations accessible and convenient to most people, 2 including at least one in an equity investment eligible 3 community, which are scheduled after the utility submits its 4 plan for Commission review. 5 (h) No later than July 1, 2025, gas utilities in this State 6 must file the first gas infrastructure plan application for 7 approval. The Commission may approve, deny, or require 8 modifications to the plan. Once approved, the plan must be 9 incorporated into the utility's next general rate case using 10 the approved ratemaking treatments. Deviations based on 11 unforeseen circumstances must be justified and approved by the 12 Commission. 13 (i) The Commission shall adopt new rules, amend existing 14 rules, as necessary, and dedicate sufficient resources to 15 implement this Section. 16 (220 ILCS 5/24-111 new) 17 Sec. 24-111. Study on gas utility financial incentive 18 reform. 19 (a) The General Assembly finds that: 20 (1) Improving the alignment of gas utility customer 21 interests, State policy, and company interests is critical 22 to ensuring the expected decline in the use of natural gas 23 is done efficiently, safely, cost-effectively, and 24 transparently. 25 (2) There is urgency around addressing increasing SB3935 - 88 - LRB103 40383 LNS 72670 b SB3935- 89 -LRB103 40383 LNS 72670 b SB3935 - 89 - LRB103 40383 LNS 72670 b SB3935 - 89 - LRB103 40383 LNS 72670 b 1 threats from climate change and assisting communities that 2 have borne disproportionate impacts from climate change, 3 including air pollution, greenhouse gas emissions, and 4 energy burdens. Addressing this problem requires changes 5 to the energy used to power homes and businesses, and 6 changes to the gas utility business model under which 7 utilities in the State have traditionally functioned. 8 (3) Gas utility ratepayers may face upwardly spiraling 9 bills if steps are not taken to contain costs and 10 strategically prune parts of the gas distribution network. 11 (4) There is a need to encourage gas utilities to 12 innovate and find new lines of business to maintain 13 financial health as their main business, the provision of 14 fossil natural gas, winds down. 15 (5) The current regulatory framework has encouraged 16 infrastructure programs that have been plagued by 17 excessive cost overruns and delays. 18 (6) Discussions of performance incentive mechanisms 19 must always take into account the affordability of 20 customer rates and bills via stakeholder input. 21 The General Assembly, therefore, directs the Commission to 22 reform the gas utility financial incentives structure to 23 further specified goals and objectives related to the 24 provision of clean, affordable heat and the advancement of an 25 equitable distribution of benefits and reduction in harms in 26 equity investment eligible communities and economically SB3935 - 89 - LRB103 40383 LNS 72670 b SB3935- 90 -LRB103 40383 LNS 72670 b SB3935 - 90 - LRB103 40383 LNS 72670 b SB3935 - 90 - LRB103 40383 LNS 72670 b 1 disadvantaged communities. 2 (b) The Commission shall open an investigation to consider 3 performance-based ratemaking tools and other financial 4 mechanisms to advance the goals of affordability, equity, 5 pollution reduction, energy system flexibility and 6 electrification, reliability, safety, customer experience, 7 cost-effectiveness, and the financial health of gas utilities 8 as the gas utilities scale down their core business of 9 delivering fuel-based energy through the distribution network. 10 The investigation shall consider the following mechanisms, in 11 addition to any others that the Commission or stakeholders 12 deem necessary: 13 (1) accelerated and shortened depreciation schedules; 14 (2) performance metrics and benchmarking; 15 (3) revenue decoupling; 16 (4) cost-recovery options for nonpipeline 17 alternatives; 18 (5) electrification; 19 (6) networked geothermal systems; 20 (7) securitization; 21 (8) fuel-cost sharing; 22 (9) multiyear rate plans; 23 (10) performance incentive mechanisms; 24 (11) the equalization of capital and operational 25 expenditures; 26 (12) return on equity levels for different investment SB3935 - 90 - LRB103 40383 LNS 72670 b SB3935- 91 -LRB103 40383 LNS 72670 b SB3935 - 91 - LRB103 40383 LNS 72670 b SB3935 - 91 - LRB103 40383 LNS 72670 b 1 types; 2 (13) rate designs at the electric and gas nexus; 3 (14) low-income rates; 4 (15) luxury gas rates; and 5 (16) intersectoral cost recovery. 6 (c) The Commission must create a framework to evaluate 7 each mechanism on its own and as part of a set of mechanisms to 8 achieve the policy objectives determined by the General 9 Assembly, stakeholders, and the general public after a minimum 10 of 3 public hearings held at times and locations accessible 11 and convenient to most people, including at least one in an 12 equity investment eligible community. 13 (d) The investigation shall consist of a series of 14 workshops facilitated by an independent consultant that 15 encourages representation from diverse stakeholders, ensures 16 equitable opportunities for participation, and does not 17 require formal intervention or representation by an attorney. 18 (e) Any recommendations at the conclusion of the process 19 must be shared with the General Assembly, and those 20 recommendations already within the Commission's existing 21 authorities must be adopted in the next applicable general 22 rate case or relevant filing. 23 (220 ILCS 5/24-112 new) 24 Sec. 24-112. Reporting requirements. 25 (a) Each gas utility in the State must report data to the SB3935 - 91 - LRB103 40383 LNS 72670 b SB3935- 92 -LRB103 40383 LNS 72670 b SB3935 - 92 - LRB103 40383 LNS 72670 b SB3935 - 92 - LRB103 40383 LNS 72670 b 1 Commission in January and July of each year that satisfy 2 metrics that are set by the Commission to assess, on a system, 3 segment, and neighborhood basis, the level of system safety 4 and risk. The metrics must include, but are not limited to, the 5 following: 6 (1) the overall average leak rate of replaced and 7 to-be-replaced mains and leak-prone pipes; 8 (2) the overall average leak rate using only 9 leak-prone pipe and current leaks; 10 (3) the neighborhood average leak rate using only 11 remaining leak-prone pipes and current leaks; and 12 (4) the neighborhood historic average leak rate using 13 leaks on leak-prone pipes for the past 2 years, on a 14 rolling basis, normalized for weather, and incorporating 15 all class 2 leaks except third-party damage. 16 (b) Gas utilities must include in the report an assessment 17 of whether the actions taken in the prior 3 years produced the 18 best value, in terms of risk reduction, for the amounts 19 expended and a prediction of how planned projects will change 20 risk levels on a neighborhood, segment, and system basis. The 21 report filed by Peoples Gas Light and Coke Company must also 22 include updates on steps taken to implement the 23 recommendations of the Final Report on Phase One of an 24 Investigation of Peoples Gas Light and Coke Company's AMRP. 25 The Commission may require any other gas utility to adopt new 26 and revised practices and processes by Peoples Gas Light and SB3935 - 92 - LRB103 40383 LNS 72670 b SB3935- 93 -LRB103 40383 LNS 72670 b SB3935 - 93 - LRB103 40383 LNS 72670 b SB3935 - 93 - LRB103 40383 LNS 72670 b 1 Coke Company to ensure consistency across utilities. 2 (c) In its review of the data and metrics provided, the 3 Commission may order adjustments in infrastructure replacement 4 plans as it deems necessary to meet an acceptable level of risk 5 at appropriate cost. 6 (220 ILCS 5/Art. XXV heading new) 7 ARTICLE XXV. STATE NAVIGATOR PROGRAM LAW 8 (220 ILCS 5/25-101 new) 9 Sec. 25-101. Short title. This Article may be cited as the 10 State Navigator Program Law. References in this Article to 11 "this Act" mean this Article. 12 (220 ILCS 5/25-102 new) 13 Sec. 25-102. Intent. The General Assembly finds that 14 improving the energy efficiency of, and reducing the 15 greenhouse gases from, residential buildings are critical to 16 meeting the State's adopted climate goals in Public Act 17 102-662. 18 The General Assembly recognizes that making information 19 about energy efficiency and weatherization programs, 20 electrification services, skilled contractors, and federal and 21 State electrification incentives available to State residents 22 will assist obligated parties to comply with the Clean Heat 23 Standard set out in Article XXIII. Further, the General SB3935 - 93 - LRB103 40383 LNS 72670 b SB3935- 94 -LRB103 40383 LNS 72670 b SB3935 - 94 - LRB103 40383 LNS 72670 b SB3935 - 94 - LRB103 40383 LNS 72670 b 1 Assembly recognizes that establishing a comprehensive 2 statewide navigator program is essential to ensuring equitable 3 access to electrification and energy efficient services. This 4 program requires the Administrator to help State residents 5 combine local, State, federal, and utility services related to 6 electrification, energy efficiency, and the reduction of 7 energy burdens to maximize electrification and energy 8 efficiency in this State, and fill gaps as needed. 9 (220 ILCS 5/25-103 new) 10 Sec. 25-103. Definitions. As used in this Article: 11 "Administrator" means an entity, including, but not 12 limited to, a nonprofit corporation or community-based 13 organization. "Administrator" does not include an energy 14 utility. 15 "Customers" means residents, businesses, and building 16 owners. 17 "Department" means the Department of Commerce and Economic 18 Opportunity. 19 "Electrification services" includes energy audits, 20 assistance converting to on-site renewable energy, installing 21 electric heat pumps and heat pump water heaters, electric 22 appliance replacement, assistance with paperwork, arranging 23 for financing, energy efficiency, weatherization, health and 24 safety, and any related services and work. 25 "Equity investment eligible communities" has the meaning SB3935 - 94 - LRB103 40383 LNS 72670 b SB3935- 95 -LRB103 40383 LNS 72670 b SB3935 - 95 - LRB103 40383 LNS 72670 b SB3935 - 95 - LRB103 40383 LNS 72670 b 1 given to that term in Section 5-5 of the Energy Transition Act. 2 "Income-qualified households" means those whose annual 3 incomes are at or below 80% of area median income. 4 "Navigator Working Group" means representatives appointed 5 by the Department who represent members from either the 6 electrician trades, construction industry, community 7 organizations that work in energy burdened communities, 8 community organizations who have experience with 9 weatherization programs, members from equity investment 10 eligible communities or the Illinois Commerce Commission or 11 staff, and electric utilities and obligated parties as 12 indicated in Article XXIII. 13 (220 ILCS 5/25-104 new) 14 Sec. 25-104. Creation of State navigator program. 15 (a) The Department may establish and oversee a statewide 16 building energy upgrade navigator program. The purpose of the 17 navigator program is to provide a statewide resource to assist 18 building owners and building renters with accessing 19 electrification services and energy efficiency services and 20 programs, funding, and any other assistance that will result 21 in aiding obligated parties' compliance with the Clean Heat 22 Standard in Article XXIII. This includes, but is not limited 23 to, utility programs, the weatherization assistance program, 24 federal funding, rebates, health and safety funding, and other 25 State and local funding. SB3935 - 95 - LRB103 40383 LNS 72670 b SB3935- 96 -LRB103 40383 LNS 72670 b SB3935 - 96 - LRB103 40383 LNS 72670 b SB3935 - 96 - LRB103 40383 LNS 72670 b 1 (b) The Department must coordinate and collaborate with 2 the navigator working group on the design, administration, and 3 implementation of the navigator program. 4 (c) The Department must ensure that all State residents 5 have equitable access to the navigator program. 6 (d) The Department may consult with other programs, 7 entities, and stakeholders as the Department determines to be 8 appropriate on the design, administration, and implementation 9 of the navigator program. 10 (e) Third-Party Administrator. 11 (1) The Department may contract out this program to 12 the Administrator. Subject to the following requirements: 13 (A) The Administrator must be selected through a 14 competitive process. 15 (B) The Administrator must have experience with 16 running statewide programs related to energy 17 efficiency, electrification services, or 18 weatherization programs. 19 (C) The Administrator must have experience working 20 with multifamily building owners and renters. 21 (D) The Administrator must have experience 22 assisting people with low incomes or energy burdened 23 households. 24 (E) The Administrator must have experience running 25 programs in both urban and rural parts of the State, 26 including covering a range of geographic and community SB3935 - 96 - LRB103 40383 LNS 72670 b SB3935- 97 -LRB103 40383 LNS 72670 b SB3935 - 97 - LRB103 40383 LNS 72670 b SB3935 - 97 - LRB103 40383 LNS 72670 b 1 diversity. 2 (2) If the Department decides to hire an 3 Administrator, they must enter into a contract within a 4 year of the effective date of this amendatory Act of the 5 103rd General Assembly. 6 (3) If the Department decides to hire an 7 Administrator, the contract expires after 4 years. After 4 8 years, the Department can renew the contract or select a 9 different Administrator. If the Administrator is not 10 meeting the requirements of the program and its 11 participants, the contract may be terminated early, and a 12 new Administrator may be hired. 13 (4) The Administrator shall have the same 14 responsibilities as the Department in creating, 15 overseeing, and implementing the programs in the navigator 16 program. 17 (f) The Department or Administrator of the naviga tor 18 program must: 19 (1) provide outreach and deliver energy services to: 20 (A) owner occupied and rental residences; and 21 (B) single-family and multifamily dwellings; 22 (2) provide coverage for all geographic regions in the 23 State; 24 (3) support energy efficient and emissions reductions 25 alternatives for all types of fuel used in buildings; the 26 Department or Administrator shall ensure funding is used SB3935 - 97 - LRB103 40383 LNS 72670 b SB3935- 98 -LRB103 40383 LNS 72670 b SB3935 - 98 - LRB103 40383 LNS 72670 b SB3935 - 98 - LRB103 40383 LNS 72670 b 1 for projects that include electrification and energy 2 efficiency work, and any related health and safety, 3 renewable energy, and whole building needs; funding shall 4 not be used for the installation of new natural gas or 5 other fossil fuel equipment; 6 (4) create strategies to ensure that the navigator 7 program prioritizes services in equity investment eligible 8 communities, one of which must include dedicating at least 9 40% of the total funding for the navigator program to 10 deploy electrification services, energy efficiency 11 measures, renewable energy, health and safety upgrades, 12 and related upgrades in equity investment eligible 13 communities, through; 14 (A) weatherization services, including air sealing 15 and insulation; 16 (B) health and safety improvements; 17 (C) purchase and installation of efficient 18 electric equipment; 19 (D) energy efficiency improvements, as needed; 20 (E) health and safety improvements that aid in 21 energy conservation; 22 (F) weatherization services; 23 (G) solar, storage, and renewable energy, as 24 needed; and 25 (G) workforce development programs; 26 (5) create a strategy for how the navigator program SB3935 - 98 - LRB103 40383 LNS 72670 b SB3935- 99 -LRB103 40383 LNS 72670 b SB3935 - 99 - LRB103 40383 LNS 72670 b SB3935 - 99 - LRB103 40383 LNS 72670 b 1 will equitably assist residents in accessing rebates and 2 incentives in the federal Inflation Reduction Act; 3 (6) create a strategy for how the navigator program 4 will assist customers in accessing State funding 5 opportunities available to access electrification 6 services; 7 (7) create a strategy to stack funding from all 8 available incentives and tax rebates together with the 9 goal of creating a 'one-stop shop' for all weatherization, 10 energy efficiency and electrification services; 11 (8) support the integrated implementation of all 12 relevant clean building programs funded in the State 13 budget, including, but not limited to: 14 (A) the Low Income Home Energy Assistance Program; 15 and 16 (B) the Illinois Home Weatherization Assistance 17 Program; and 18 (9) maintain a recommended contractor list. 19 (220 ILCS 5/25-105 new) 20 Sec. 25-105. Education materials and outreach. The 21 Department or Administrator shall: 22 (1) create educational materials, which must include 23 information about all relevant funds and financial 24 assistance available from federal, State, local, and 25 energy utility programs, including, but not limited to, SB3935 - 99 - LRB103 40383 LNS 72670 b SB3935- 100 -LRB103 40383 LNS 72670 b SB3935 - 100 - LRB103 40383 LNS 72670 b SB3935 - 100 - LRB103 40383 LNS 72670 b 1 incentives, rebates, tax credits, grants, and loan 2 programs; 3 (2) contract with one or more community-based 4 organizations that demonstrate past success in working 5 with equity investment eligible communities in order to 6 create and distribute educational materials specifically 7 targeted at equity investment eligible communities; 8 (3) support and connect community-based organizations 9 in their region to training programs in areas of 10 electrification, energy efficiency, building envelope, and 11 installation technical assistance, and other relevant 12 areas; and 13 (4) ensure the education and outreach work is 14 coordinated with other State energy efficiency, 15 weatherization, electrification, and related programs and 16 providers. 17 (220 ILCS 5/25-106 new) 18 Sec. 25-106. Delivered services for equity investment 19 eligible communities. 20 (a) The Department or Administrator must implement the 21 navigator program for income-qualified households, which must 22 include support navigating to existing programs or directly 23 providing and filling gaps related to: 24 (1) energy audits to provide recommendations to 25 customers on a wide range of cost-effective energy and SB3935 - 100 - LRB103 40383 LNS 72670 b SB3935- 101 -LRB103 40383 LNS 72670 b SB3935 - 101 - LRB103 40383 LNS 72670 b SB3935 - 101 - LRB103 40383 LNS 72670 b 1 health improvements; 2 (2) weatherization and energy efficiency services, 3 including, but not limited to, adding insulation, sealing 4 cracks, and making other changes that reduce heat loss, 5 save money on heating bills, and improve the health and 6 safety of buildings; 7 (3) appliance upgrades; 8 (4) electrification services, including installation 9 of air-sourced heat pumps, heat pump hot water heaters, 10 cooling, and electric panel upgrades and wiring; 11 (5) accessing qualified energy contractors; and 12 (6) securing financing. 13 (b) Nothing in this Section shall preclude the 14 implementation of measures that, in addition to producing 15 energy savings, increase electric load by adding building 16 cooling systems where none existed before. 17 Section 99. Effective date. This Act takes effect upon 18 becoming law. 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 SB3935- 102 -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 SB3935 - 103 - LRB103 40383 LNS 72670 b SB3935 - 101 - LRB103 40383 LNS 72670 b SB3935- 102 -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 - 102 - LRB103 40383 LNS 72670 b SB3935- 103 -LRB103 40383 LNS 72670 b SB3935 - 103 - LRB103 40383 LNS 72670 b SB3935 - 103 - LRB103 40383 LNS 72670 b SB3935 - 103 - LRB103 40383 LNS 72670 b