State of Illinois
90th General Assembly
Legislation

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[ Introduced ]

90_HB1309ham001

                                             LRB9003851DPmgam
 1                    AMENDMENT TO HOUSE BILL 1309
 2        AMENDMENT NO.     .  Amend House Bill 1309  by  replacing
 3    all of Section 5 with the following:
 4        "Section  5.  The  Public  Utilities  Act  is  amended by
 5    changing Section 8-403.1 as follows:
 6        (220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1)
 7        Sec. 8-403.1. Qualified solid  waste  energy  facilities;
 8    purchase rate.
 9        (a)  It is hereby declared to be the policy of this State
10    to  encourage  the development of alternate energy production
11    facilities in order to conserve our energy resources  and  to
12    provide for their most efficient use.
13        (b)  For the purpose of this Section and Section 9-215.1,
14    "qualified  solid  waste  energy  facility"  means a facility
15    determined by the Illinois Commerce Commission to qualify  as
16    such under the Local Solid Waste Disposal Act, to use methane
17    gas  generated  from  landfills  as  its primary fuel, and to
18    possess characteristics that would enable it to qualify as  a
19    cogeneration or small power production facility under federal
20    law.
21        (b-5)  In  the case of facilities that use solid waste as
22    a fuel to generate energy,  the  facility  must  (i)  include
                            -2-              LRB9003851DPmgam
 1    equipment  designed  to  recover  recyclable  materials in an
 2    amount equal to at least 20% by weight from all  solid  waste
 3    delivered  to  the  facility and (ii) comply with air quality
 4    standards set forth by the Illinois Environmental  Protection
 5    Agency.
 6        (c)  In  furtherance  of  the  policy  declared  in  this
 7    Section,  the  Illinois  Commerce  Commission  shall require,
 8    subject to the provisions of subsection (i) of this  Section,
 9    electric  utilities  to  enter  into  long-term  contracts to
10    purchase  electricity  from  qualified  solid  waste   energy
11    facilities  located  in  the electric utility's service area,
12    for a period beginning on the date that the  facility  begins
13    generating electricity and having a duration of not less than
14    20  years,  or  10  years in the case of facilities fueled by
15    landfill-generated methane,  or  20  years  in  the  case  of
16    facilities  fueled by methane generated from a landfill owned
17    by a forest preserve district. For facilities that use  solid
18    waste  as  a  fuel  to  generate  energy,  the  purchase rate
19    contained in the long-term contracts shall be a rate equal to
20    the average amount per kilowatt-hour paid from time  to  time
21    by  the unit or units of local government owning or served by
22    the facilities, excluding amounts paid  for  street  lighting
23    and    pumping    services.    For    facilities   that   use
24    landfill-generated methane gas as  fuel,  the  purchase  rate
25    contained  in  such  contracts  shall be equal to the average
26    amount per kilowatt-hour paid from time to time by  the  unit
27    or  units  of  local  government  in  which  the  electricity
28    generating facilities are located, excluding amounts paid for
29    street  lighting  and  pumping  service.  Long-term contracts
30    with facilities that use solid waste as a  fuel  to  generate
31    energy  and that meet the criteria under subsection (i) shall
32    cover electricity generated on and after January 1, 1997.
33        (d)  Whenever a public utility is  required  to  purchase
34    electricity  pursuant  to  subsection  (c) above, it shall be
                            -3-              LRB9003851DPmgam
 1    entitled to credits in respect  of  its  obligations  to  pay
 2    taxes under the Public Utilities Revenue Act or any successor
 3    taxes  to  that  Act  equal  to the amounts, if any, by which
 4    payments for such electricity exceed  (i)  the  then  current
 5    rate  at  which  the  utility  must  purchase  the  output of
 6    qualified facilities pursuant to the federal  Public  Utility
 7    Regulatory  Policies  Act  of  1978,  less  (ii)  any  costs,
 8    expenses,  losses,  damages  or other amounts incurred by the
 9    utility, or for which it becomes liable, arising out  of  its
10    failure  to  obtain such electricity from such other sources.
11    The amount of any such credit shall, in the  first  instance,
12    be  determined  by  the  utility,  which shall make a monthly
13    report of such credits to the  Illinois  Commerce  Commission
14    and, on its monthly tax return, to the Illinois Department of
15    Revenue.  Under  no circumstances shall a utility be required
16    to purchase electricity from a qualified solid  waste  energy
17    facility  at  the  rate  prescribed in subsection (c) of this
18    Section if (A) such purchase would result  in  estimated  tax
19    credits  that  exceed,  on  a  monthly  basis,  the utility's
20    estimated obligation to pay taxes under the Public  Utilities
21    Revenue  Act  or  any  successor taxes to that Act or (B) the
22    facility fails to  comply  with  the  air  quality  standards
23    prescribed  for  the  facility  by the Illinois Environmental
24    Protection  Agency,  in   which   case   (i)   the   Illinois
25    Environmental  Protection  Agency  shall  notify  the  public
26    utility  of  the  noncompliance  and  (ii) the facility shall
27    receive a reduced rate per kilowatt-hour equal to the current
28    rate at  which  the  utility  must  purchase  the  output  of
29    qualified   facilities   pursuant   to   the  Public  Utility
30    Regulatory  Policies  Act  of  1978   for   the   period   of
31    noncompliance,  that period not to be less than one hour. The
32    owner  or  operator  shall   negotiate   facility   operating
33    conditions  with  the  purchasing  utility in accordance with
34    that utility's posted standard terms and conditions for small
                            -4-              LRB9003851DPmgam
 1    power producers. If the Department of  Revenue  disputes  the
 2    amount  of  any such credit, such dispute shall be decided by
 3    the Illinois Commerce Commission.
 4        There is hereby created the Technology Education Fund  as
 5    a   special   fund   in  the  State  Treasury.   Pursuant  to
 6    appropriation, disbursements from  the  Technology  Education
 7    Fund  shall  be  made  by  the  Department  of  Commerce  and
 8    Community  Affairs to qualified Illinois high schools for the
 9    purpose of establishing  new  educational  programs  for  the
10    advancement  of  the physical sciences.   For facilities that
11    use solid waste as a fuel to  generate  energy,  as  soon  as
12    practical  after the end of each calendar year, the qualified
13    solid waste energy facility shall remit an amount equal to 5%
14    of the tax credits received by the public utility pursuant to
15    subsection (d) for the prior calendar year to the  Technology
16    Education Fund.
17        Whenever A qualified solid waste energy facility has paid
18    or   otherwise   satisfied  in  full  the  capital  costs  or
19    indebtedness incurred  in  developing  and  implementing  the
20    qualified  facility,  the  qualified facility shall reimburse
21    the Public Utility Utilities Fund or a successor fund in  the
22    State  treasury  for the actual reduction in payments to that
23    Fund or a successor fund caused by this subsection (d),  less
24    any  payments  made  by  the  qualified  solid  waste  energy
25    facility to the Technology  Education Fund, in a manner to be
26    determined  by  the Illinois Commerce Commission and based on
27    the manner in which revenues for that  Fund  or  a  successor
28    fund  were  reduced.  In  establishing  the manner in which a
29    qualified solid waste energy  facility  shall  reimburse  the
30    Fund  or  a  successor fund, the Illinois Commerce Commission
31    shall require that (i) payments to the Fund  or  a  successor
32    fund  begin  on  the  reimbursement  commencement date, which
33    shall be the earlier of  (A)  21  years  from  the  date  the
34    qualified  solid  waste  energy  facility  begins  commercial
                            -5-              LRB9003851DPmgam
 1    operation  or  (B)  the  date  on  which the capital costs or
 2    indebtedness   incurred    in    developing,    constructing,
 3    refinancing,  and  implementing  the  qualified facility have
 4    been paid in full,  and (ii) full reimbursement to  the  Fund
 5    or  a  successor fund shall occur over a 12-year period after
 6    the reimbursement commencement date. Payments shall  be  made
 7    in  equal  monthly installments. A reimbursement payment that
 8    is not paid when due in accordance with this  subsection  (d)
 9    shall  bear interest at the rate specified in Section 12-1303
10    of the Code of Civil Procedure from the date the payment  was
11    due  until  the  date the payment and all interest related to
12    the payment is paid in full. In order to  secure  payment  of
13    the  reimbursement  obligation  of a qualified facility under
14    this subsection there is  established  a  statutory  lien  in
15    favor  of  the Fund on the qualified facility. The lien shall
16    come into existence on the  reimbursement  commencement  date
17    and  after  that  date,  shall be superior to all other liens
18    established in connection with the indebtedness  incurred  in
19    developing,  constructing,  and  implementing  the  qualified
20    facility.  The  statutory  lien shall expire on the date that
21    the facility makes the last payment specified in the schedule
22    of reimbursement payments.
23        For purposes of  this  Section  "air  quality  standards"
24    means the air emission limits for each continuously monitored
25    emission constituent, while using solid waste as fuel, as set
26    forth  in  the Construction/PSD permit issued by the Illinois
27    Environmental Protection  Agency  prior  to  commencement  of
28    construction of a qualified solid waste energy facility.
29        (d-5)  For  facilities  that use solid waste as a fuel to
30    generate energy, the qualified solid  waste  energy  facility
31    shall   provide   funding   to   the  Illinois  Environmental
32    Protection Agency  for  the  installation,  maintenance,  and
33    operating  costs of a computer and related software necessary
34    to provide the general public with access  to  the  qualified
                            -6-              LRB9003851DPmgam
 1    solid  waste energy facility's emission data for continuously
 2    monitored emission constituents.  The  computer  and  related
 3    software  shall  be  installed  at  a public library near the
 4    qualified solid waste energy facility or at another  location
 5    as directed by the Illinois Environmental Protection Agency.
 6        (e)  The  Illinois  Commerce Commission shall not require
 7    an  electric  utility  to  purchase  electricity   from   any
 8    qualified  solid  waste  energy  facility  which  is owned or
 9    operated by an  entity  that  is  primarily  engaged  in  the
10    business  of producing or selling electricity, gas, or useful
11    thermal energy from a source other than one or more qualified
12    solid waste energy facilities.
13        (f)  This Section does not require an electric utility to
14    construct additional facilities unless those  facilities  are
15    paid  for  by the owner or operator of the affected qualified
16    solid waste energy facility.
17        (g)  The Illinois Commerce Commission shall require that:
18    (1) electric utilities use the electricity purchased  from  a
19    qualified solid waste energy facility to displace electricity
20    generated  from  nuclear  power  or  coal mined and purchased
21    outside the  boundaries  of  the  State  of  Illinois  before
22    displacing   electricity   generated   from  coal  mined  and
23    purchased  within  the  State  of  Illinois,  to  the  extent
24    possible, and (2) electric utilities report annually  to  the
25    Commission on the extent of such displacements.
26        (h)  Nothing  in  this  Section  is  intended to cause an
27    electric utility that is required to purchase power hereunder
28    to incur any economic loss as a result of its purchase.   All
29    amounts  paid  for  power  which  a  utility  is  required to
30    purchase pursuant to subparagraph (c) shall be deemed  to  be
31    costs  prudently  incurred  for purposes of computing charges
32    under rates authorized by Section 9-220  of  this  Act.   Tax
33    credits  provided  for  herein  shall be reflected in charges
34    made pursuant to rates  so  authorized  to  the  extent  such
                            -7-              LRB9003851DPmgam
 1    credits are based upon a cost which is also reflected in such
 2    charges.
 3        (i)  The  provisions  of  subsection  (c) of this Section
 4    shall not apply to a facility unless the facility either  (1)
 5    is  fueled  by  landfill-generated  methane  or  (2)  met the
 6    following criteria prior to January 1, 1997:
 7             (A)  the  Illinois  Commerce  Commission  issued  an
 8        order making the determination required by subsection (b)
 9        of this Section for the facility;
10             (B)  all governmental permits necessary to  commence
11        construction were issued;
12             (C)  construction  of the facility was substantially
13        completed; and
14             (D)  bonds were issued or other  debt  was  incurred
15        for  the  purpose,  and in the full amount anticipated at
16        the time of issuance or incurrence to  be  necessary,  to
17        finance the development and construction of the facility.
18    (Source: P.A. 89-448, eff. 3-14-96.)
19        Section  10.   The State Finance Act is amended by adding
20    Section 5.449 as follows:
21        (30 ILCS 105/5.449 new)
22        Sec. 5.449.  The Technology Education Fund.".

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