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90_HB3256sam003 SRS90HB3256JJcham02 1 AMENDMENT TO HOUSE BILL 3256 2 AMENDMENT NO. . Amend House Bill 3256 by replacing 3 the title with the following: 4 "AN ACT concerning utilities."; and 5 by replacing everything after the enacting clause with the 6 following: 7 "Section 5. The Electricity Excise Tax Law is amended by 8 changing Sections 2-7 and 2-9 as follows: 9 (35 ILCS 640/2-7) 10 Sec. 2-7. Collection of electricity excise tax. 11 (a) Beginning with bills for electricity or electric 12 service issued on and after August 1, 1998, the tax imposed 13 by this Law shall be collected from the purchaser, other than 14 a self-assessing purchaser where the delivering supplier or 15 suppliers are notified by the Department that the purchaser 16 has been registered as a self-assessing purchaser for the 17 accounts listed by the self-assessing purchaser as described 18 in Section 2-10 of this Law, by any delivering supplier 19 maintaining a place of business in this State at the rates 20 stated in Section 2-4 with respect to the electricity 21 delivered by such delivering supplier to or for the -2- SRS90HB3256JJcham02 1 purchaser, and shall be remitted to the Department as 2 provided in Section 2-9 of this Law. All sales to a purchaser 3 are presumed subject to tax collection unless the Department 4 notifies the delivering supplier that the purchaser has been 5 registered as a self-assessing purchaser for the accounts 6 listed by the self-assessing purchaser as described in 7 Section 2-10 of this Law. Upon receipt of notification by 8 the Department, the delivering supplier is relieved of all 9 liability for the collection and remittance of tax from the 10 self-assessing purchaser for which notification was provided 11 by the Department. The delivering supplier is relieved of 12 the liability for the collection of the tax from a 13 self-assessing purchaser until such time as the delivering 14 supplier is notified in writing by the Department that the 15 purchaser's certification as a self-assessing purchaser is no 16 longer in effect. Delivering suppliers shall collect the tax 17 from purchasers by adding the tax to the amount of the 18 purchase price received from the purchaser for delivering 19 electricity for or to the purchaser. Where a delivering 20 supplier does not collect the tax from a purchaser, other 21 than a self-assessing purchaser, as provided herein, such 22 purchaser shall pay the tax directly to the Department. 23 (b) The credit allowed to a public utility under Section 24 8-403.1 of the Public Utilities Act shall be allowed as a 25 credit against the public utility's obligation to remit 26 electricity excise tax described in Section 2-9. 27 (Source: P.A. 90-561, eff. 8-1-98; 90-624, eff. 7-10-98.) 28 (35 ILCS 640/2-9) 29 Sec. 2-9. Return and payment of tax by delivering 30 supplier. Each delivering supplier who is required or 31 authorized to collect the tax imposed by this Law shall make 32 a return to the Department on or before the 15th day of each 33 month for the preceding calendar month stating the following: -3- SRS90HB3256JJcham02 1 (1) The delivering supplier's name. 2 (2) The address of the delivering supplier's 3 principal place of business and the address of the 4 principal place of business (if that is a different 5 address) from which the delivering supplier engaged in 6 the business of delivering electricity in this State. 7 (3) The total number of kilowatt-hours which the 8 supplier delivered to or for purchasers during the 9 preceding calendar month and upon the basis of which the 10 tax is imposed. 11 (4) Amount of tax, computed upon Item (3) at the 12 rates stated in Section 2-4. 13 (5) An adjustment for uncollectible amounts of tax 14 in respect of prior period kilowatt-hour deliveries, 15 determined in accordance with rules and regulations 16 promulgated by the Department. 17 (5.5) The amount of credits to which the taxpayer 18 is entitled on account of purchases made under Section 19 8-403.1 of the Public Utilities Act. 20 (6) Such other information as the Department 21 reasonably may require. 22 In making such return the delivering supplier may use any 23 reasonable method to derive reportable "kilowatt-hours" from 24 the delivering supplier's records. 25 If the average monthly tax liability to the Department of 26 the delivering supplier does not exceed $2,500, the 27 Department may authorize the delivering supplier's returns to 28 be filed on a quarter-annual basis, with the return for 29 January, February and March of a given year being due by 30 April 30 of such year; with the return for April, May and 31 June of a given year being due by July 31 of such year; with 32 the return for July, August and September of a given year 33 being due by October 31 of such year; and with the return for 34 October, November and December of a given year being due by -4- SRS90HB3256JJcham02 1 January 31 of the following year. 2 If the average monthly tax liability to the Department of 3 the delivering supplier does not exceed $1,000, the 4 Department may authorize the delivering supplier's returns to 5 be filed on an annual basis, with the return for a given year 6 being due by January 31 of the following year. 7 Such quarter-annual and annual returns, as to form and 8 substance, shall be subject to the same requirements as 9 monthly returns. 10 Notwithstanding any other provision in this Law 11 concerning the time within which a delivering supplier may 12 file a return, any such delivering supplier who ceases to 13 engage in a kind of business which makes the person 14 responsible for filing returns under this Law shall file a 15 final return under this Law with the Department not more than 16 one month after discontinuing such business. 17 Each delivering supplier whose average monthly liability 18 to the Department under this Law was $10,000 or more during 19 the preceding calendar year, excluding the month of highest 20 liability and the month of lowest liability in such calendar 21 year, and who is not operated by a unit of local government, 22 shall make estimated payments to the Department on or before 23 the 7th, 15th, 22nd and last day of the month during which 24 tax liability to the Department is incurred in an amount not 25 less than the lower of either 22.5% of such delivering 26 supplier's actual tax liability for the month or 25% of such 27 delivering supplier's actual tax liability for the same 28 calendar month of the preceding year. The amount of such 29 quarter-monthly payments shall be credited against the final 30 tax liability of such delivering supplier's return for that 31 month. An outstanding credit approved by the Department or a 32 credit memorandum issued by the Department arising from such 33 delivering supplier's overpayment of his or her final tax 34 liability for any month may be applied to reduce the amount -5- SRS90HB3256JJcham02 1 of any subsequent quarter-monthly payment or credited against 2 the final tax liability of such delivering supplier's return 3 for any subsequent month. If any quarter-monthly payment is 4 not paid at the time or in the amount required by this 5 Section, such delivering supplier shall be liable for penalty 6 and interest on the difference between the minimum amount due 7 as a payment and the amount of such payment actually and 8 timely paid, except insofar as such delivering supplier has 9 previously made payments for that month to the Department in 10 excess of the minimum payments previously due. 11 If the Director finds that the information required for 12 the making of an accurate return cannot reasonably be 13 compiled by such delivering supplier within 15 days after the 14 close of the calendar month for which a return is to be made, 15 the Director may grant an extension of time for the filing of 16 such return for a period not to exceed 31 calendar days. The 17 granting of such an extension may be conditioned upon the 18 deposit by such delivering supplier with the Department of an 19 amount of money not exceeding the amount estimated by the 20 Director to be due with the return so extended. All such 21 deposits shall be credited against such delivering supplier's 22 liabilities under this Law. If the deposit exceeds such 23 delivering supplier's present and probable future liabilities 24 under this Law, the Department shall issue to such delivering 25 supplier a credit memorandum, which may be assigned by such 26 delivering supplier to a similar person under this Law, in 27 accordance with reasonable rules and regulations to be 28 prescribed by the Department. 29 The delivering supplier making the return provided for in 30 this Section shall, at the time of making such return, pay to 31 the Department the amount of tax imposed by this Law. 32 A delivering supplier who has an average monthly tax 33 liability of $10,000 or more shall make all payments 34 required by rules of the Department by electronic funds -6- SRS90HB3256JJcham02 1 transfer. The term "average monthly tax liability" shall be 2 the sum of the delivering supplier's liabilities under this 3 Law for the immediately preceding calendar year divided by 4 12. Any delivering supplier not required to make payments 5 by electronic funds transfer may make payments by electronic 6 funds transfer with the permission of the Department. All 7 delivering suppliers required to make payments by electronic 8 funds transfer and any delivering suppliers authorized to 9 voluntarily make payments by electronic funds transfer shall 10 make those payments in the manner authorized by the 11 Department. 12 Each month the Department shall pay into the Public 13 Utility Fund in the State treasury an amount determined by 14 the Director to be equal to 3.0% of the funds received by the 15 Department pursuant to this Section. The remainder of all 16 moneys received by the Department under this Section shall be 17 paid into the General Revenue Fund in the State treasury. 18 (Source: P.A. 90-561, eff. 8-1-98.) 19 Section 10. The Public Utilities Act is amended by 20 changing Section 8-403.1 as follows: 21 (220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1) 22 Sec. 8-403.1. Electricity purchased from qualified solid 23 waste energy facility. 24 (a) It is hereby declared to be the policy of this State 25 to encourage the development of alternate energy production 26 facilities in order to conserve our energy resources and to 27 provide for their most efficient use. 28 (b) For the purpose of this Section and Section 9-215.1, 29 "qualified solid waste energy facility" means a facility 30 determined by the Illinois Commerce Commission to qualify as 31 such under the Local Solid Waste Disposal Act, to use methane 32 gas generated from landfills as its primary fuel, and to -7- SRS90HB3256JJcham02 1 possess characteristics that would enable it to qualify as a 2 cogeneration or small power production facility under federal 3 law. 4 (c) In furtherance of the policy declared in this 5 Section, the Illinois Commerce Commission shall require 6 electric utilities to enter into long-term contracts to 7 purchase electricity from qualified solid waste energy 8 facilities located in the electric utility's service area, 9 for a period beginning on the date that the facility begins 10 generating electricity and having a duration of not less than 11 10 years in the case of facilities fueled by 12 landfill-generated methane, or 20 years in the case of 13 facilities fueled by methane generated from a landfill owned 14 by a forest preserve district. The purchase rate contained 15 in such contracts shall be equal to the average amount per 16 kilowatt-hour paid from time to time by the unit or units of 17 local government in which the electricity generating 18 facilities are located, excluding amounts paid for street 19 lighting and pumping service. 20 (d) Whenever a public utility is required to purchase 21 electricity pursuant to subsection (c) above, it shall be 22 entitled to credits in respect of its obligations to remit to 23 the State
paytaxes it has collected under the Electricity 24 Excise Tax Law Public Utilities Revenue Actequal to the 25 amounts, if any, by which payments for such electricity 26 exceed (i) the then current rate at which the utility must 27 purchase the output of qualified facilities pursuant to the 28 federal Public Utility Regulatory Policies Act of 1978, less 29 (ii) any costs, expenses, losses, damages or other amounts 30 incurred by the utility, or for which it becomes liable, 31 arising out of its failure to obtain such electricity from 32 such other sources. The amount of any such credit shall, in 33 the first instance, be determined by the utility, which shall 34 make a monthly report of such credits to the Illinois -8- SRS90HB3256JJcham02 1 Commerce Commission and, on its monthly tax return, to the 2 Illinois Department of Revenue. Under no circumstances shall 3 a utility be required to purchase electricity from a 4 qualified solid waste energy facility at the rate prescribed 5 in subsection (c) of this Section if such purchase would 6 result in estimated tax credits that exceed, on a monthly 7 basis, the utility's estimated obligation to remit to the 8 State paytaxes it has collected under the Electricity Excise 9 Tax Law Public Utilities Revenue Act. The owner or operator 10 shall negotiate facility operating conditions with the 11 purchasing utility in accordance with that utility's posted 12 standard terms and conditions for small power producers. If 13 the Department of Revenue disputes the amount of any such 14 credit, such dispute shall be decided by the Illinois 15 Commerce Commission. Whenever a qualified solid waste energy 16 facility has paid or otherwise satisfied in full the capital 17 costs or indebtedness incurred in developing and implementing 18 the qualified facility, the qualified facility shall 19 reimburse the Public Utility UtilitiesFund and the General 20 Revenue Fund in the State treasury for the actual reduction 21 in payments to those Funds that Fundcaused by this 22 subsection (d) in a manner to be determined by the Illinois 23 Commerce Commission and based on the manner in which revenues 24 for those Funds that Fundwere reduced. 25 (e) The Illinois Commerce Commission shall not require 26 an electric utility to purchase electricity from any 27 qualified solid waste energy facility which is owned or 28 operated by an entity that is primarily engaged in the 29 business of producing or selling electricity, gas, or useful 30 thermal energy from a source other than one or more qualified 31 solid waste energy facilities. 32 (f) This Section does not require an electric utility to 33 construct additional facilities unless those facilities are 34 paid for by the owner or operator of the affected qualified -9- SRS90HB3256JJcham02 1 solid waste energy facility. 2 (g) The Illinois Commerce Commission shall require that: 3 (1) electric utilities use the electricity purchased from a 4 qualified solid waste energy facility to displace electricity 5 generated from nuclear power or coal mined and purchased 6 outside the boundaries of the State of Illinois before 7 displacing electricity generated from coal mined and 8 purchased within the State of Illinois, to the extent 9 possible, and (2) electric utilities report annually to the 10 Commission on the extent of such displacements. 11 (h) Nothing in this Section is intended to cause an 12 electric utility that is required to purchase power hereunder 13 to incur any economic loss as a result of its purchase. All 14 amounts paid for power which a utility is required to 15 purchase pursuant to subparagraph (c) shall be deemed to be 16 costs prudently incurred for purposes of computing charges 17 under rates authorized by Section 9-220 of this Act. Tax 18 credits provided for herein shall be reflected in charges 19 made pursuant to rates so authorized to the extent such 20 credits are based upon a cost which is also reflected in such 21 charges. 22 (Source: P.A. 89-448, eff. 3-14-96.) 23 Section 99. Effective date. This Act takes effect upon 24 becoming law.".
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