Public Act 90-0813 of the 90th General Assembly
Public Act 90-0813
SB299 Enrolled LRB9000204DPcc
AN ACT concerning utilities.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 3. The Illinois State Auditing Act is amended by
changing Section 3-1 as follows:
(30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
Sec. 3-1. Jurisdiction of Auditor General. The Auditor
General has jurisdiction over all State agencies to make post
audits and investigations authorized by or under this Act or
the Constitution.
The Auditor General has jurisdiction over local
government agencies and private agencies only:
(a) to make such post audits authorized by or under
this Act as are necessary and incidental to a post audit
of a State agency or of a program administered by a State
agency involving public funds of the State, but this
jurisdiction does not include any authority to review
local governmental agencies in the obligation, receipt,
expenditure or use of public funds of the State that are
granted without limitation or condition imposed by law,
other than the general limitation that such funds be used
for public purposes;
(b) to make investigations authorized by or under
this Act or the Constitution; and
(c) to make audits of the records of local
government agencies to verify actual costs of
state-mandated programs when directed to do so by the
Legislative Audit Commission at the request of the State
Board of Appeals under the State Mandates Act.
In addition to the foregoing, the Auditor General may
conduct an audit of the Metropolitan Pier and Exposition
Authority, the Regional Transportation Authority, the
Suburban Bus Division, the Commuter Rail Division and the
Chicago Transit Authority and any other subsidized carrier
when authorized by the Legislative Audit Commission. Such
audit may be a financial, management or program audit, or any
combination thereof.
The audit shall determine whether they are operating in
accordance with all applicable laws and regulations. Subject
to the limitations of this Act, the Legislative Audit
Commission may by resolution specify additional
determinations to be included in the scope of the audit.
The Auditor General may also conduct an audit, when
authorized by the Legislative Audit Commission, of any
hospital which receives 10% or more of its gross revenues
from payments from the State of Illinois, Department of
Public Aid, Medical Assistance Program.
The Auditor General is authorized to conduct financial
and compliance audits of the Illinois Distance Learning
Foundation and the Illinois Conservation Foundation.
As soon as practical after the effective date of this
amendatory Act of 1995, the Auditor General shall conduct a
compliance and management audit of the City of Chicago and
any other entity with regard to the operation of Chicago
O'Hare International Airport, Chicago Midway Airport and
Merrill C. Meigs Field. The audit shall include, but not be
limited to, an examination of revenues, expenses, and
transfers of funds; purchasing and contracting policies and
practices; staffing levels; and hiring practices and
procedures. When completed, the audit required by this
paragraph shall be distributed in accordance with Section
3-14.
The Auditor General shall conduct a financial and
compliance and program audit of distributions from the
Municipal Economic Development Fund during the immediately
preceding calendar year pursuant to Section 8-403.1 of the
Public Utilities Act at no cost to the city, village, or
incorporated town that received the distributions.
(Source: P.A. 88-146; 88-591, eff. 8-20-94; 89-386, eff.
8-18-95.)
Section 5. The Electricity Excise Tax Law is amended by
changing Sections 2-7 and 2-9 as follows:
(35 ILCS 640/2-7)
Sec. 2-7. Collection of electricity excise tax.
(a) Beginning with bills for electricity or electric
service issued on and after August 1, 1998, the tax imposed
by this Law shall be collected from the purchaser, other than
a self-assessing purchaser where the delivering supplier or
suppliers are notified by the Department that the purchaser
has been registered as a self-assessing purchaser for the
accounts listed by the self-assessing purchaser as described
in Section 2-10 of this Law, by any delivering supplier
maintaining a place of business in this State at the rates
stated in Section 2-4 with respect to the electricity
delivered by such delivering supplier to or for the
purchaser, and shall be remitted to the Department as
provided in Section 2-9 of this Law. All sales to a purchaser
are presumed subject to tax collection unless the Department
notifies the delivering supplier that the purchaser has been
registered as a self-assessing purchaser for the accounts
listed by the self-assessing purchaser as described in
Section 2-10 of this Law. Upon receipt of notification by
the Department, the delivering supplier is relieved of all
liability for the collection and remittance of tax from the
self-assessing purchaser for which notification was provided
by the Department. The delivering supplier is relieved of
the liability for the collection of the tax from a
self-assessing purchaser until such time as the delivering
supplier is notified in writing by the Department that the
purchaser's certification as a self-assessing purchaser is no
longer in effect. Delivering suppliers shall collect the tax
from purchasers by adding the tax to the amount of the
purchase price received from the purchaser for delivering
electricity for or to the purchaser. Where a delivering
supplier does not collect the tax from a purchaser, other
than a self-assessing purchaser, as provided herein, such
purchaser shall pay the tax directly to the Department.
(b) The credit allowed to a public utility under Section
8-403.1 of the Public Utilities Act shall be allowed as a
credit against the public utility's obligation to remit
electricity excise tax described in Section 2-9.
(Source: P.A. 90-561, eff. 8-1-98; 90-624, eff. 7-10-98.)
(35 ILCS 640/2-9)
Sec. 2-9. Return and payment of tax by delivering
supplier. Each delivering supplier who is required or
authorized to collect the tax imposed by this Law shall make
a return to the Department on or before the 15th day of each
month for the preceding calendar month stating the following:
(1) The delivering supplier's name.
(2) The address of the delivering supplier's
principal place of business and the address of the
principal place of business (if that is a different
address) from which the delivering supplier engaged in
the business of delivering electricity in this State.
(3) The total number of kilowatt-hours which the
supplier delivered to or for purchasers during the
preceding calendar month and upon the basis of which the
tax is imposed.
(4) Amount of tax, computed upon Item (3) at the
rates stated in Section 2-4.
(5) An adjustment for uncollectible amounts of tax
in respect of prior period kilowatt-hour deliveries,
determined in accordance with rules and regulations
promulgated by the Department.
(5.5) The amount of credits to which the taxpayer
is entitled on account of purchases made under Section
8-403.1 of the Public Utilities Act.
(6) Such other information as the Department
reasonably may require.
In making such return the delivering supplier may use any
reasonable method to derive reportable "kilowatt-hours" from
the delivering supplier's records.
If the average monthly tax liability to the Department of
the delivering supplier does not exceed $2,500, the
Department may authorize the delivering supplier's returns to
be filed on a quarter-annual basis, with the return for
January, February and March of a given year being due by
April 30 of such year; with the return for April, May and
June of a given year being due by July 31 of such year; with
the return for July, August and September of a given year
being due by October 31 of such year; and with the return for
October, November and December of a given year being due by
January 31 of the following year.
If the average monthly tax liability to the Department of
the delivering supplier does not exceed $1,000, the
Department may authorize the delivering supplier's returns to
be filed on an annual basis, with the return for a given year
being due by January 31 of the following year.
Such quarter-annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Law
concerning the time within which a delivering supplier may
file a return, any such delivering supplier who ceases to
engage in a kind of business which makes the person
responsible for filing returns under this Law shall file a
final return under this Law with the Department not more than
one month after discontinuing such business.
Each delivering supplier whose average monthly liability
to the Department under this Law was $10,000 or more during
the preceding calendar year, excluding the month of highest
liability and the month of lowest liability in such calendar
year, and who is not operated by a unit of local government,
shall make estimated payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which
tax liability to the Department is incurred in an amount not
less than the lower of either 22.5% of such delivering
supplier's actual tax liability for the month or 25% of such
delivering supplier's actual tax liability for the same
calendar month of the preceding year. The amount of such
quarter-monthly payments shall be credited against the final
tax liability of such delivering supplier's return for that
month. An outstanding credit approved by the Department or a
credit memorandum issued by the Department arising from such
delivering supplier's overpayment of his or her final tax
liability for any month may be applied to reduce the amount
of any subsequent quarter-monthly payment or credited against
the final tax liability of such delivering supplier's return
for any subsequent month. If any quarter-monthly payment is
not paid at the time or in the amount required by this
Section, such delivering supplier shall be liable for penalty
and interest on the difference between the minimum amount due
as a payment and the amount of such payment actually and
timely paid, except insofar as such delivering supplier has
previously made payments for that month to the Department in
excess of the minimum payments previously due.
If the Director finds that the information required for
the making of an accurate return cannot reasonably be
compiled by such delivering supplier within 15 days after the
close of the calendar month for which a return is to be made,
the Director may grant an extension of time for the filing of
such return for a period not to exceed 31 calendar days. The
granting of such an extension may be conditioned upon the
deposit by such delivering supplier with the Department of an
amount of money not exceeding the amount estimated by the
Director to be due with the return so extended. All such
deposits shall be credited against such delivering supplier's
liabilities under this Law. If the deposit exceeds such
delivering supplier's present and probable future liabilities
under this Law, the Department shall issue to such delivering
supplier a credit memorandum, which may be assigned by such
delivering supplier to a similar person under this Law, in
accordance with reasonable rules and regulations to be
prescribed by the Department.
The delivering supplier making the return provided for in
this Section shall, at the time of making such return, pay to
the Department the amount of tax imposed by this Law.
A delivering supplier who has an average monthly tax
liability of $10,000 or more shall make all payments
required by rules of the Department by electronic funds
transfer. The term "average monthly tax liability" shall be
the sum of the delivering supplier's liabilities under this
Law for the immediately preceding calendar year divided by
12. Any delivering supplier not required to make payments
by electronic funds transfer may make payments by electronic
funds transfer with the permission of the Department. All
delivering suppliers required to make payments by electronic
funds transfer and any delivering suppliers authorized to
voluntarily make payments by electronic funds transfer shall
make those payments in the manner authorized by the
Department.
Each month the Department shall pay into the Public
Utility Fund in the State treasury an amount determined by
the Director to be equal to 3.0% of the funds received by the
Department pursuant to this Section. The remainder of all
moneys received by the Department under this Section shall be
paid into the General Revenue Fund in the State treasury.
(Source: P.A. 90-561, eff. 8-1-98.)
Section 10. The Public Utilities Act is amended by
changing Section 8-403.1 as follows:
(220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1)
Sec. 8-403.1. Electricity purchased from qualified solid
waste energy facility; tax credit; distributions for economic
development.
(a) It is hereby declared to be the policy of this State
to encourage the development of alternate energy production
facilities in order to conserve our energy resources and to
provide for their most efficient use.
(b) For the purpose of this Section and Section 9-215.1,
"qualified solid waste energy facility" means a facility
determined by the Illinois Commerce Commission to qualify as
such under the Local Solid Waste Disposal Act, to use methane
gas generated from landfills as its primary fuel, and to
possess characteristics that would enable it to qualify as a
cogeneration or small power production facility under federal
law.
(c) In furtherance of the policy declared in this
Section, the Illinois Commerce Commission shall require
electric utilities to enter into long-term contracts to
purchase electricity from qualified solid waste energy
facilities located in the electric utility's service area,
for a period beginning on the date that the facility begins
generating electricity and having a duration of not less than
10 years in the case of facilities fueled by
landfill-generated methane, or 20 years in the case of
facilities fueled by methane generated from a landfill owned
by a forest preserve district. The purchase rate contained
in such contracts shall be equal to the average amount per
kilowatt-hour paid from time to time by the unit or units of
local government in which the electricity generating
facilities are located, excluding amounts paid for street
lighting and pumping service.
(d) Whenever a public utility is required to purchase
electricity pursuant to subsection (c) above, it shall be
entitled to credits in respect of its obligations to remit to
the State pay taxes it has collected under the Electricity
Excise Tax Law Public Utilities Revenue Act equal to the
amounts, if any, by which payments for such electricity
exceed (i) the then current rate at which the utility must
purchase the output of qualified facilities pursuant to the
federal Public Utility Regulatory Policies Act of 1978, less
(ii) any costs, expenses, losses, damages or other amounts
incurred by the utility, or for which it becomes liable,
arising out of its failure to obtain such electricity from
such other sources. The amount of any such credit shall, in
the first instance, be determined by the utility, which shall
make a monthly report of such credits to the Illinois
Commerce Commission and, on its monthly tax return, to the
Illinois Department of Revenue. Under no circumstances shall
a utility be required to purchase electricity from a
qualified solid waste energy facility at the rate prescribed
in subsection (c) of this Section if such purchase would
result in estimated tax credits that exceed, on a monthly
basis, the utility's estimated obligation to remit to the
State pay taxes it has collected under the Electricity Excise
Tax Law Public Utilities Revenue Act. The owner or operator
shall negotiate facility operating conditions with the
purchasing utility in accordance with that utility's posted
standard terms and conditions for small power producers. If
the Department of Revenue disputes the amount of any such
credit, such dispute shall be decided by the Illinois
Commerce Commission. Whenever a qualified solid waste energy
facility has paid or otherwise satisfied in full the capital
costs or indebtedness incurred in developing and implementing
the qualified facility, the qualified facility shall
reimburse the Public Utility Utilities Fund and the General
Revenue Fund in the State treasury for the actual reduction
in payments to those Funds that Fund caused by this
subsection (d) in a manner to be determined by the Illinois
Commerce Commission and based on the manner in which revenues
for those Funds that Fund were reduced.
(e) The Illinois Commerce Commission shall not require
an electric utility to purchase electricity from any
qualified solid waste energy facility which is owned or
operated by an entity that is primarily engaged in the
business of producing or selling electricity, gas, or useful
thermal energy from a source other than one or more qualified
solid waste energy facilities.
(f) This Section does not require an electric utility to
construct additional facilities unless those facilities are
paid for by the owner or operator of the affected qualified
solid waste energy facility.
(g) The Illinois Commerce Commission shall require that:
(1) electric utilities use the electricity purchased from a
qualified solid waste energy facility to displace electricity
generated from nuclear power or coal mined and purchased
outside the boundaries of the State of Illinois before
displacing electricity generated from coal mined and
purchased within the State of Illinois, to the extent
possible, and (2) electric utilities report annually to the
Commission on the extent of such displacements.
(h) Nothing in this Section is intended to cause an
electric utility that is required to purchase power hereunder
to incur any economic loss as a result of its purchase. All
amounts paid for power which a utility is required to
purchase pursuant to subparagraph (c) shall be deemed to be
costs prudently incurred for purposes of computing charges
under rates authorized by Section 9-220 of this Act. Tax
credits provided for herein shall be reflected in charges
made pursuant to rates so authorized to the extent such
credits are based upon a cost which is also reflected in such
charges.
(i) Beginning in February 1999 and through January 2009,
each qualified solid waste energy facility that sells
electricity to an electric utility at the purchase rate
described in subsection (c) shall file with the State
Treasurer on or before the 15th of each month a form,
prescribed by the State Treasurer, that states the number of
kilowatt hours of electricity for which payment was received
at that purchase rate from electric utilities in Illinois
during the immediately preceding month. This form shall be
accompanied by a payment from the qualified solid waste
energy facility in an amount equal to six-tenths of a mill
($0.0006) per kilowatt hour of electricity stated on the
form. Payments received by the State Treasurer shall be
deposited into the Municipal Economic Development Fund, a
trust fund created outside the State treasury. The State
Treasurer may invest the moneys in the Fund in any investment
authorized by the Public Funds Investment Act, and investment
income shall be deposited into and become part of the Fund.
Moneys in the Fund shall be used by the State Treasurer as
provided in subsection (j). The obligation of a qualified
solid waste energy facility to make payments into the
Municipal Economic Development Fund shall terminate upon
either: (1) expiration or termination of a facility's
contract to sell electricity to an electric utility at the
purchase rate described in subsection (c); or (2) entry of an
enforceable, final, and non-appealable order by a court of
competent jurisdiction that Public Act 89-448 is invalid.
Payments by a qualified solid waste energy facility into the
Municipal Economic Development Fund do not relieve the
qualified solid waste energy facility of its obligation to
reimburse the Public Utility Fund and the General Revenue
Fund for the actual reduction in payments to those Funds as a
result of credits received by electric utilities under
subsection (d).
(j) The State Treasurer, without appropriation, must
make distributions immediately after January 15, April 15,
July 15, and October 15 of each year, up to maximum aggregate
distributions of $500,000 for the distributions made in the 4
quarters beginning with the April distribution and ending
with the January distribution, from the Municipal Economic
Development Fund to each city, village, or incorporated town
that has within its boundaries an incinerator that: (1) uses
municipal waste as its primary fuel to generate electricity;
(2) was determined by the Illinois Commerce Commission to
qualify as a qualified solid waste energy facility prior to
the effective date of Public Act 89-448; and (3) commenced
operation prior to January 1, 1998. Total distributions in
the aggregate to all qualified cities, villages, and
incorporated towns in the 4 quarters beginning with the April
distribution and ending with the January distribution shall
not exceed $500,000. The amount of each distribution shall
be determined pro rata based on the population of the city,
village, or incorporated town compared to the total
population of all cities, villages, and incorporated towns
eligible to receive a distribution. Distributions received
by a city, village, or incorporated town must be held in a
separate account and may be used only to promote and enhance
industrial, commercial, residential, service, transportation,
and recreational activities and facilities within its
boundaries, thereby enhancing the employment opportunities,
public health and general welfare, and economic development
within the community, including administrative expenditures
exclusively to further these activities. These funds,
however, shall not be used by the city, village, or
incorporated town, directly or indirectly, to purchase,
lease, operate, or in any way subsidize the operation of any
incinerator, and these funds shall not be paid, directly or
indirectly, by the city, village, or incorporated town to the
owner, operator, lessee, shareholder, or bondholder of any
incinerator. Moreover, these funds shall not be used to pay
attorneys fees in any litigation relating to the validity of
Public Act 89-448. Nothing in this Section prevents a city,
village, or incorporated town from using other corporate
funds for any legitimate purpose. For purposes of this
subsection, the term "municipal waste" has the meaning
ascribed to it in Section 3.21 of the Environmental
Protection Act.
(k) If maximum aggregate distributions of $500,000 under
subsection (j) have been made after the January distribution
from the Municipal Economic Development Fund, then the
balance in the Fund shall be refunded to the qualified solid
waste energy facilities that made payments that were
deposited into the Fund during the previous 12-month period.
The refunds shall be prorated based upon the facility's
payments in relation to total payments for that 12-month
period.
(l) Beginning January 1, 2000, and each January 1
thereafter, each city, village, or incorporated town that
received distributions from the Municipal Economic
Development Fund, continued to hold any of those
distributions, or made expenditures from those distributions
during the immediately preceding year shall submit to a
financial and compliance and program audit of those
distributions performed by the Auditor General at no cost to
the city, village, or incorporated town that received the
distributions. The audit should be completed by June 30 or
as soon thereafter as possible. The audit shall be submitted
to the State Treasurer and those officers enumerated in
Section 3-14 of the Illinois State Auditing Act. If the
Auditor General finds that distributions have been expended
in violation of this Section, the Auditor General shall refer
the matter to the Attorney General. The Attorney General may
recover, in a civil action, 3 times the amount of any
distributions illegally expended. For purposes of this
subsection, the terms "financial audit," "compliance audit",
and "program audit" have the meanings ascribed to them in
Sections 1-13 and 1-15 of the Illinois State Auditing Act.
(Source: P.A. 89-448, eff. 3-14-96.)
Section 99. Effective date. This Act takes effect upon
becoming law.