IL SB0635

Establishes natural gas energy efficiency standards requiring utilities to achieve cumulative savings of 0.2% by May 31, 2012, increasing incrementally to 7.1% by May 31, 2019, and 1.5% annually thereafter based on 2009 baseline gas delivery levels.

Requires utilities to recover approved efficiency program costs through automatic adjustment clause tariffs approved by the Illinois Commerce Commission, with annual reviews to reconcile collected amounts with actual costs.

Allocates 75% of efficiency funding to utilities and 25% to the Department of Commerce and Economic Opportunity, with minimum 10% of measures from local government, schools, and community colleges, and at least 20% dedicated to low-income households.

Imposes penalties of $100,000 per day for utilities failing to file efficiency plans by October 1 deadline, and requires utilities failing to meet standards for 2 consecutive 3-year periods to transfer program responsibility to an independent administrator selected by the Commission.

Allows large industrial and manufacturing customers using 4 million or more therms annually to opt into a self-directing customer program with energy efficiency reserve accounts, or exempt themselves if using natural gas as feedstock representing over 60% of usage.