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1 | AN ACT concerning renewable energy.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||||||||||||||||||||
5 | Renewable Solar and Wind Energy Act. | ||||||||||||||||||||||||
6 | Section 5. Legislative findings. The General Assembly | ||||||||||||||||||||||||
7 | finds that the use of
renewable energy resources generated from | ||||||||||||||||||||||||
8 | local sources such as solar
and wind power benefit the State by | ||||||||||||||||||||||||
9 | reducing the load on the State's
electric energy grid, by | ||||||||||||||||||||||||
10 | providing non-polluting sources of electricity
generation, and | ||||||||||||||||||||||||
11 | by the creation of jobs for local industries that
develop and | ||||||||||||||||||||||||
12 | sell renewable energy products and technologies.
The State can | ||||||||||||||||||||||||
13 | support these industries by providing
incentives for the | ||||||||||||||||||||||||
14 | purchase of locally made renewable energy products.
Locally | ||||||||||||||||||||||||
15 | made renewable technologies benefit and protect the State's
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16 | environment. The General Assembly also finds that the State's | ||||||||||||||||||||||||
17 | economy can
be enhanced through the creation of incentives to | ||||||||||||||||||||||||
18 | develop additional
renewable energy industries in the State. | ||||||||||||||||||||||||
19 | The General Assembly intends to provide incentives for the | ||||||||||||||||||||||||
20 | greater use
of locally created renewable energy technologies, | ||||||||||||||||||||||||
21 | support and retain
existing local industries, and create new | ||||||||||||||||||||||||
22 | opportunities for renewable
energy industries to develop in the | ||||||||||||||||||||||||
23 | State. |
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1 | Section 10. Definitions. For purposes of this Act:
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2 | (1) "Customer-generated electricity" means the alternating | ||||||
3 | current
electricity that is generated from a renewable energy | ||||||
4 | system located on
an individual's, businesses', or unit of | ||||||
5 | local government's real property that
is also provided | ||||||
6 | electricity generated by an electric utility.
A system located | ||||||
7 | on a leasehold interest does not qualify under this
definition. | ||||||
8 | "Customer-generated electricity" does not include
electricity | ||||||
9 | generated by an electric utility with greater than
1,000 | ||||||
10 | megawatt hours of annual sales or a gas distribution
business.
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11 | (2) "Economic development kilowatt-hour" means the actual | ||||||
12 | kilowatt-hour measurement of customer-generated electricity | ||||||
13 | multiplied by the
appropriate economic development factor.
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14 | (3) "Photovoltaic cell" means a device that converts light | ||||||
15 | directly
into electricity without moving parts.
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16 | (4) "Renewable energy system" means a solar energy system | ||||||
17 | or a wind generator
used for producing electricity.
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18 | (5) "Solar energy system" means any device or combination | ||||||
19 | of
devices or elements that rely upon direct sunlight as an | ||||||
20 | energy source
for use in the generation of electricity.
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21 | (6) "Solar inverter" means the device used to convert | ||||||
22 | direct
current to alternating current in a photovoltaic cell | ||||||
23 | system.
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24 | (7) "Solar module" means the smallest nondivisible | ||||||
25 | self-contained
physical structure housing interconnected |
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1 | photovoltaic cells and
providing a single direct current | ||||||
2 | electrical output.
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3 | (8) "Standards for interconnection to the electric | ||||||
4 | distribution
system" means technical, engineering, | ||||||
5 | operational, safety, and
procedural requirements for | ||||||
6 | interconnection to the electric
distribution system of an | ||||||
7 | electric utility.
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8 | Section 15. Investment; cost recovery. | ||||||
9 | (a) Any individual, business, or unit of local
government, | ||||||
10 | not in the electric utility business or in the gas
distribution | ||||||
11 | business, may apply to the electric utility
serving that | ||||||
12 | individual, business, or unit of local
government, each State | ||||||
13 | fiscal year beginning on July 1,
2007, for an investment cost | ||||||
14 | recovery incentive for each kilowatt-hour
from a | ||||||
15 | customer-generated electricity renewable energy system | ||||||
16 | installed
on its property that is not interconnected to the | ||||||
17 | electric distribution
system. No incentive may be paid for | ||||||
18 | kilowatt-hours generated before
July 1, 2007, or after June 30, | ||||||
19 | 2014.
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20 | (b) When electric utilities serving 80% of the
total | ||||||
21 | customer load in the State adopt uniform standards for
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22 | interconnection to the electric distribution system, any | ||||||
23 | individual,
business, or local governmental entity, not in the | ||||||
24 | electric utility
business or in the gas distribution business, | ||||||
25 | may apply to the electric utility serving that individual, |
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1 | business, or unit of local
government, each fiscal year,
for an | ||||||
2 | investment cost recovery incentive for each kilowatt-hour from
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3 | a customer-generated electricity renewable energy system | ||||||
4 | installed on
its property that is not interconnected to the | ||||||
5 | electric distribution
system and from a customer-generated | ||||||
6 | electricity renewable energy
system installed on its property | ||||||
7 | that is interconnected to the electric
distribution system. | ||||||
8 | Uniform standards for interconnection to the
electric | ||||||
9 | distribution system means those standards established by | ||||||
10 | electric utilities that have 90% of total requirements in | ||||||
11 | common. No incentive may be paid for kilowatt-hours generated | ||||||
12 | before
July 1, 2007, or after June 30, 2014.
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13 | (c) Before submitting for the first time the application | ||||||
14 | for the
incentive allowed under this Section, the applicant | ||||||
15 | shall submit to the
Department of Revenue a certification in a | ||||||
16 | form and manner prescribed by the
Department that includes, but | ||||||
17 | is not limited to, the following
information:
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18 | (1) the name and address of the applicant and location | ||||||
19 | of the
renewable energy system;
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20 | (2) the applicant's tax registration number;
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21 | (3) that the electricity produced by the applicant | ||||||
22 | meets the
definition of "customer-generated electricity" | ||||||
23 | and that the renewable
energy system produces electricity | ||||||
24 | with:
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25 | (A) any solar inverters and solar modules | ||||||
26 | manufactured in
the State;
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1 | (B) a wind generator powered by blades | ||||||
2 | manufactured in the
State;
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3 | (C) a solar inverter manufactured in the State;
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4 | (D) a solar module manufactured in the State; or
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5 | (E) solar or wind equipment manufactured outside | ||||||
6 | of the State;
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7 | (4) that the electricity can be transformed or | ||||||
8 | transmitted for
entry into or operation in parallel with | ||||||
9 | electricity transmission and
distribution systems;
and | ||||||
10 | (5) the date that the renewable energy system received | ||||||
11 | any required final
electrical permit from the applicable | ||||||
12 | local jurisdiction.
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13 | Within 30 days after receipt of the certification the
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14 | Department shall advise the applicant in writing whether the
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15 | renewable energy system qualifies for an incentive under this | ||||||
16 | Section.
The Department may consult with the other State | ||||||
17 | agencies to determine eligibility for the incentive. | ||||||
18 | (d) By August 1 of each year, application for the incentive
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19 | shall be made to the electric utility serving the situs of the
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20 | system by certification in a form and manner prescribed by the
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21 | Department that includes, but is not limited to, the following
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22 | information:
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23 | (1) the name and address of the applicant and location | ||||||
24 | of the
renewable energy system;
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25 | (2) the applicant's tax registration number;
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26 | (3) the date of the letter from the Department stating
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1 | that the renewable energy system is eligible for the | ||||||
2 | incentives under
this Section;
and | ||||||
3 | (4) a statement of the amount of kilowatt-hours | ||||||
4 | generated by the
renewable energy system in the prior | ||||||
5 | fiscal year.
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6 | Within 60 days of receipt of the incentive certification | ||||||
7 | the
electric utility serving the situs of the system shall | ||||||
8 | notify
the applicant in writing whether the incentive payment | ||||||
9 | will be
authorized or denied. The business may consult with the | ||||||
10 | Department to determine eligibility for the
incentive payment. | ||||||
11 | Persons receiving incentive payments shall keep and
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12 | preserve, for a period of 5 years, suitable records as may be
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13 | necessary to determine the amount of incentive applied for and
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14 | received. Such records shall be open for examination at any | ||||||
15 | time upon
notice by the electric utility that made the payment | ||||||
16 | or by the
Department. If upon examination of any records or | ||||||
17 | from other
information obtained by the business or Department | ||||||
18 | it appears that an
incentive has been paid in an amount that | ||||||
19 | exceeds the correct amount of
incentive payable, the business | ||||||
20 | may assess against the person for the
amount found to have been | ||||||
21 | paid in excess of the correct amount of
incentive payable and | ||||||
22 | shall add interest on that amount. | ||||||
23 | If it appears that the amount of incentive paid is less | ||||||
24 | than
the correct amount of incentive payable the business may | ||||||
25 | authorize
additional payment.
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26 | (e) The investment cost recovery incentive may be paid |
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1 | $0.15 per economic development kilowatt-hour unless requests | ||||||
2 | exceed the
amount authorized for credit to the participating | ||||||
3 | electric utility. For the purposes of this Section, the rate | ||||||
4 | paid for the
investment cost recovery incentive may be | ||||||
5 | multiplied by the following
factors:
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6 | (1) For customer-generated electricity produced using | ||||||
7 | solar modules
manufactured in the State, 2 and four-tenths. | ||||||
8 | (2) For customer-generated electricity produced using | ||||||
9 | a solar or a
wind generator equipped with an inverter | ||||||
10 | manufactured in this State, one and two-tenths. | ||||||
11 | (3) For customer-generated electricity produced using | ||||||
12 | an anaerobic
digester, or by other solar equipment or using | ||||||
13 | a wind generator
equipped with blades manufactured in this | ||||||
14 | State, one. | ||||||
15 | (4) For all other customer-generated electricity | ||||||
16 | produced by wind,
eight-tenths. | ||||||
17 | (f) No individual, household, business, or local | ||||||
18 | governmental
entity is eligible for incentives for more than | ||||||
19 | $2,000
per year.
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20 | (g) If requests for the investment cost recovery incentive | ||||||
21 | exceed
the amount of funds available for credit to the | ||||||
22 | participating electric utility, the incentive payments shall | ||||||
23 | be reduced
proportionately.
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24 | (h) The environmental attributes of the renewable energy | ||||||
25 | system
belong to the applicant, and do not transfer to the | ||||||
26 | State or the electric utility upon receipt of the investment |
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1 | cost recovery
incentive.
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2 | Section 20. Credit. | ||||||
3 | (a) An electric utility shall be
allowed a credit against | ||||||
4 | any taxes otherwise due to the State of Illinois in an amount
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5 | equal to investment cost recovery incentive payments made in | ||||||
6 | any fiscal
year under Section 15 of this Act. The credit shall | ||||||
7 | be taken in a form
and manner as required by the Department. | ||||||
8 | The credit may not exceed the taxes that would otherwise be | ||||||
9 | owed by the entity. Refunds shall not be granted in the place | ||||||
10 | of credits.
Expenditures not used to earn a credit in one | ||||||
11 | fiscal year may not be
used to earn a credit in subsequent | ||||||
12 | years.
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13 | (b) For any business that has claimed credit for amounts | ||||||
14 | that
exceed the correct amount of the incentive payable under | ||||||
15 | Section 15 of
this Act, the amount of tax against which credit | ||||||
16 | was claimed for the
excess payments shall be immediately due | ||||||
17 | and payable. The Department
shall assess interest but not | ||||||
18 | penalties on the taxes against which the
credit was claimed. | ||||||
19 | (c) The right to earn tax credits under this Section | ||||||
20 | expires June
30, 2015. Credits may not be claimed after June | ||||||
21 | 30, 2016.
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22 | Section 25. Reports. | ||||||
23 | (a) Using existing sources of information,
the Department | ||||||
24 | shall report to the Environment and Energy Committees of the |
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1 | General Assembly by
December 1, 2011. The report shall measure | ||||||
2 | the impact of this Act,
including the total number of solar | ||||||
3 | energy system manufacturing
companies in the State, any change | ||||||
4 | in the number of solar energy system
manufacturing companies in | ||||||
5 | the State, and, when relevant, the effect
on job creation, the | ||||||
6 | number of jobs created for State residents,
and such other | ||||||
7 | factors as the Department selects.
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8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.
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