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|[ House Amendment 001 ]||[ Senate Amendment 001 ]|
92_SB0724sam003 LRB9207881SMdvam03 1 AMENDMENT TO SENATE BILL 724 2 AMENDMENT NO. . Amend Senate Bill 724, AS AMENDED, 3 by replacing everything after the enacting clause with the 4 following: 5 "Section 5. The Public Utilities Act is amended by 6 changing Section 8-403.1 as follows: 7 (220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1) 8 Sec. 8-403.1. Electricity purchased from qualified solid 9 waste energy facility; tax credit; distributions for economic 10 development. 11 (a) It is hereby declared to be the policy of this State 12 to encourage the development of alternate energy production 13 facilities in order to conserve our energy resources and to 14 provide for their most efficient use. 15 (b) For the purpose of this Section and Section 9-215.1, 16 "qualified solid waste energy facility" means a facility 17 determined by the Illinois Commerce Commission to qualify as 18 such under the Local Solid Waste Disposal Act, to use methane 19 gas generated from landfills as its primary fuel, and to 20 possess characteristics that would enable it to qualify as a 21 cogeneration or small power production facility under federal 22 law. -2- LRB9207881SMdvam03 1 (c) In furtherance of the policy declared in this 2 Section, the Illinois Commerce Commission shall require 3 electric utilities to enter into long-term contracts to 4 purchase electricity from qualified solid waste energy 5 facilities located in the electric utility's service area, 6 for a period beginning on the date that the facility begins 7 generating electricity and having a duration of not less than 8 10 years in the case of facilities fueled by 9 landfill-generated methane, or 20 years in the case of 10 facilities fueled by methane generated from a landfill owned 11 by a forest preserve district. The purchase rate contained 12 in such contracts shall be equal to the average amount per 13 kilowatt-hour paid from time to time by the unit or units of 14 local government in which the electricity generating 15 facilities are located, excluding amounts paid for street 16 lighting and pumping service. 17 (d) Whenever a public utility is required to purchase 18 electricity pursuant to subsection (c) above, it shall be 19 entitled to credits in respect of its obligations to remit to 20 the State taxes it has collected under the Electricity Excise 21 Tax Law equal to the amounts, if any, by which payments for 22 such electricity exceed (i) the then current rate at which 23 the utility must purchase the output of qualified facilities 24 pursuant to the federal Public Utility Regulatory Policies 25 Act of 1978, less (ii) any costs, expenses, losses, damages 26 or other amounts incurred by the utility, or for which it 27 becomes liable, arising out of its failure to obtain such 28 electricity from such other sources. The amount of any such 29 credit shall, in the first instance, be determined by the 30 utility, which shall make a monthly report of such credits to 31 the Illinois Commerce Commission and, on its monthly tax 32 return, to the Illinois Department of Revenue. Under no 33 circumstances shall a utility be required to purchase 34 electricity from a qualified solid waste energy facility at -3- LRB9207881SMdvam03 1 the rate prescribed in subsection (c) of this Section if such 2 purchase would result in estimated tax credits that exceed, 3 on a monthly basis, the utility's estimated obligation to 4 remit to the State taxes it has collected under the 5 Electricity Excise Tax Law. The owner or operator shall 6 negotiate facility operating conditions with the purchasing 7 utility in accordance with that utility's posted standard 8 terms and conditions for small power producers. If the 9 Department of Revenue disputes the amount of any such credit, 10 such dispute shall be decided by the Illinois Commerce 11 Commission. Whenever a qualified solid waste energy facility 12 has paid or otherwise satisfied in full the capital costs or 13 indebtedness incurred in developing and implementing the 14 qualified facility, the qualified facility shall reimburse 15 the Public Utility Fund and the General Revenue Fund in the 16 State treasury for the actual reduction in payments to those 17 Funds caused by this subsection (d) in a manner to be 18 determined by the Illinois Commerce Commission and based on 19 the manner in which revenues for those Funds were reduced. 20 (e) The Illinois Commerce Commission shall not require 21 an electric utility to purchase electricity from any 22 qualified solid waste energy facility which is owned or 23 operated by an entity that is primarily engaged in the 24 business of producing or selling electricity, gas, or useful 25 thermal energy from a source other than one or more qualified 26 solid waste energy facilities. 27 (f) This Section does not require an electric utility to 28 construct additional facilities unless those facilities are 29 paid for by the owner or operator of the affected qualified 30 solid waste energy facility. 31 (g) The Illinois Commerce Commission shall require that: 32 (1) electric utilities use the electricity purchased from a 33 qualified solid waste energy facility to displace electricity 34 generated from nuclear power or coal mined and purchased -4- LRB9207881SMdvam03 1 outside the boundaries of the State of Illinois before 2 displacing electricity generated from coal mined and 3 purchased within the State of Illinois, to the extent 4 possible, and (2) electric utilities report annually to the 5 Commission on the extent of such displacements. 6 (h) Nothing in this Section is intended to cause an 7 electric utility that is required to purchase power hereunder 8 to incur any economic loss as a result of its purchase. All 9 amounts paid for power which a utility is required to 10 purchase pursuant to subparagraph (c) shall be deemed to be 11 costs prudently incurred for purposes of computing charges 12 under rates authorized by Section 9-220 of this Act. Tax 13 credits provided for herein shall be reflected in charges 14 made pursuant to rates so authorized to the extent such 15 credits are based upon a cost which is also reflected in such 16 charges. 17 (i) Beginning in February 1999 and through January 2009, 18 each qualified solid waste energy facility that sells 19 electricity to an electric utility at the purchase rate 20 described in subsection (c) shall file with the Department of 21 Revenue on or before the 15th of each month a form, 22 prescribed by the Department of Revenue, that states the 23 number of kilowatt hours of electricity for which payment was 24 received at that purchase rate from electric utilities in 25 Illinois during the immediately preceding month. This form 26 shall be accompanied by a payment from the qualified solid 27 waste energy facility in an amount equal to six-tenths of a 28 mill ($0.0006) per kilowatt hour of electricity stated on the 29 form. Payments received by the Department of Revenue shall be 30 deposited into the Municipal Economic Development Fund, a 31 trust fund created outside the State treasury. The State 32 Treasurer may invest the moneys in the Fund in any investment 33 authorized by the Public Funds Investment Act, and investment 34 income shall be deposited into and become part of the Fund. -5- LRB9207881SMdvam03 1 Moneys in the Fund shall be used by the State Treasurer as 2 provided in subsection (j). The obligation of a qualified 3 solid waste energy facility to make payments into the 4 Municipal Economic Development Fund shall terminate upon 5 either: (1) expiration or termination of a facility's 6 contract to sell electricity to an electric utility at the 7 purchase rate described in subsection (c); or (2) entry of an 8 enforceable, final, and non-appealable order by a court of 9 competent jurisdiction that Public Act 89-448 is invalid. 10 Payments by a qualified solid waste energy facility into the 11 Municipal Economic Development Fund do not relieve the 12 qualified solid waste energy facility of its obligation to 13 reimburse the Public Utility Fund and the General Revenue 14 Fund for the actual reduction in payments to those Funds as a 15 result of credits received by electric utilities under 16 subsection (d). 17 A qualified solid waste energy facility that fails to 18 timely file the requisite form and payment as required by 19 this subsection (i) shall be subject to penalties and 20 interest in conformance with the provisions of the Illinois 21 Uniform Penalty and Interest Act. 22 Every qualified solid waste energy facility subject to 23 the provisions of this subsection (i) shall keep and maintain 24 records and books of its sales pursuant to subsection (c), 25 including payments received from those sales and the 26 corresponding tax payments made in accordance with this 27 subsection (i), and for purposes of enforcement of this 28 subsection (i) all such books and records shall be subject to 29 inspection by the Department of Revenue or its duly 30 authorized agents or employees. 31 When a qualified solid waste energy facility fails to 32 file the form or make the payment required under this 33 subsection (i), the Department of Revenue, to the extent that 34 it is practical, may enforce the payment obligation in a -6- LRB9207881SMdvam03 1 manner consistent with Section 5 of the Retailer's Occupation 2 Tax Act, and if necessary may impose and enforce a tax lien 3 in a manner consistent with Sections 5a, 5b, 5c, 5d, 5e, 5f, 4 5g, and 5i of the Retailers' Occupation Tax Act. For 5 purposes of enforcing this subsection (i), and to the extent 6 that it is practical, the Department of Revenue may secure 7 necessary information from a qualified solid waste energy 8 facility in a manner consistent with Section 10 of the 9 Retailers' Occupation Tax Act. 10 All information received by the Department of Revenue in 11 its administration and enforcement of this subsection (i) 12 shall be confidential in a manner consistent with Section 11 13 of the Retailers' Occupation Tax Act. The Department of 14 Revenue may adopt rules to implement the provisions of this 15 subsection (i). 16 For purposes of implementing the maximum aggregate 17 distribution provisions in subsections (j) and (k), when a 18 qualified solid waste energy facility makes a late payment to 19 the Department of Revenue for deposit into the Municipal 20 Economic Development Fund, that payment and deposit shall be 21 attributed to the month and corresponding quarter in which 22 the payment should have been made, and the Treasurer shall 23 make retroactive distributions or refunds, as the case may 24 be, whenever such late payments so require. 25 (j) The State Treasurer, without appropriation, must 26 make distributions immediately after January 15, April 15, 27 July 15, and October 15 of each year, up to maximum aggregate 28 distributions of $500,000 for the distributions made in the 4 29 quarters beginning with the April distribution and ending 30 with the January distribution, from the Municipal Economic 31 Development Fund to each city, village, or incorporated town 32 that has within its boundaries an incinerator that: (1) uses 33 municipal waste as its primary fuel to generate electricity; 34 (2) was determined by the Illinois Commerce Commission to -7- LRB9207881SMdvam03 1 qualify as a qualified solid waste energy facility prior to 2 the effective date of Public Act 89-448; and (3) commenced 3 operation prior to January 1, 1998. Total distributions in 4 the aggregate to all qualified cities, villages, and 5 incorporated towns in the 4 quarters beginning with the April 6 distribution and ending with the January distribution shall 7 not exceed $500,000. The amount of each distribution shall 8 be determined pro rata based on the population of the city, 9 village, or incorporated town compared to the total 10 population of all cities, villages, and incorporated towns 11 eligible to receive a distribution. Distributions received 12 by a city, village, or incorporated town must be held in a 13 separate account and may be used only to promote and enhance 14 industrial, commercial, residential, service, transportation, 15 and recreational activities and facilities within its 16 boundaries, thereby enhancing the employment opportunities, 17 public health and general welfare, and economic development 18 within the community, including administrative expenditures 19 exclusively to further these activities. These funds, 20 however, shall not be used by the city, village, or 21 incorporated town, directly or indirectly, to purchase, 22 lease, operate, or in any way subsidize the operation of any 23 incinerator, and these funds shall not be paid, directly or 24 indirectly, by the city, village, or incorporated town to the 25 owner, operator, lessee, shareholder, or bondholder of any 26 incinerator. Moreover, these funds shall not be used to pay 27 attorneys fees in any litigation relating to the validity of 28 Public Act 89-448. Nothing in this Section prevents a city, 29 village, or incorporated town from using other corporate 30 funds for any legitimate purpose. For purposes of this 31 subsection, the term "municipal waste" has the meaning 32 ascribed to it in Section 3.21 of the Environmental 33 Protection Act. 34 (k) If maximum aggregate distributions of $500,000 under -8- LRB9207881SMdvam03 1 subsection (j) have been made after the January distribution 2 from the Municipal Economic Development Fund, then the 3 balance in the Fund shall be refunded to the qualified solid 4 waste energy facilities that made payments that were 5 deposited into the Fund during the previous 12-month period. 6 The refunds shall be prorated based upon the facility's 7 payments in relation to total payments for that 12-month 8 period. 9 (l) Beginning January 1, 2000, and each January 1 10 thereafter, each city, village, or incorporated town that 11 received distributions from the Municipal Economic 12 Development Fund, continued to hold any of those 13 distributions, or made expenditures from those distributions 14 during the immediately preceding year shall submit to a 15 financial and compliance and program audit of those 16 distributions performed by the Auditor General at no cost to 17 the city, village, or incorporated town that received the 18 distributions. The audit should be completed by June 30 or 19 as soon thereafter as possible. The audit shall be submitted 20 to the State Treasurer and those officers enumerated in 21 Section 3-14 of the Illinois State Auditing Act. If the 22 Auditor General finds that distributions have been expended 23 in violation of this Section, the Auditor General shall refer 24 the matter to the Attorney General. The Attorney General may 25 recover, in a civil action, 3 times the amount of any 26 distributions illegally expended. For purposes of this 27 subsection, the terms "financial audit," "compliance audit", 28 and "program audit" have the meanings ascribed to them in 29 Sections 1-13 and 1-15 of the Illinois State Auditing Act. 30 (Source: P.A. 90-813, eff. 1-29-99; 91-901, eff. 1-1-01.) 31 Section 99. Effective date. This Act takes effect upon 32 becoming law.".
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