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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
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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:
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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
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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
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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
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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
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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 pay taxes it has collected under the Electricity
24 Excise Tax Law Public Utilities Revenue Act equal 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
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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 pay taxes 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 Utilities Fund and the General
20 Revenue Fund in the State treasury for the actual reduction
21 in payments to those Funds that Fund caused 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 Fund were 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
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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.".