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90_SB0299ccr001
LRB9000204REpkccr
1 90TH GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON SENATE BILL 299
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to House Amendment
10 No. 1 to Senate Bill 299, recommend the following:
11 (1) that the House recede from House Amendment No. 1;
12 and
13 (2) that Senate Bill 299 be amended by replacing the
14 title with the following:
15 "AN ACT concerning utilities."; and
16 by replacing everything after the enacting clause with the
17 following:
18 "Section 3. The Illinois State Auditing Act is amended
19 by changing Section 3-1 as follows:
20 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
21 Sec. 3-1. Jurisdiction of Auditor General. The Auditor
22 General has jurisdiction over all State agencies to make post
23 audits and investigations authorized by or under this Act or
24 the Constitution.
25 The Auditor General has jurisdiction over local
26 government agencies and private agencies only:
27 (a) to make such post audits authorized by or under
28 this Act as are necessary and incidental to a post audit
29 of a State agency or of a program administered by a State
30 agency involving public funds of the State, but this
31 jurisdiction does not include any authority to review
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1 local governmental agencies in the obligation, receipt,
2 expenditure or use of public funds of the State that are
3 granted without limitation or condition imposed by law,
4 other than the general limitation that such funds be used
5 for public purposes;
6 (b) to make investigations authorized by or under
7 this Act or the Constitution; and
8 (c) to make audits of the records of local
9 government agencies to verify actual costs of
10 state-mandated programs when directed to do so by the
11 Legislative Audit Commission at the request of the State
12 Board of Appeals under the State Mandates Act.
13 In addition to the foregoing, the Auditor General may
14 conduct an audit of the Metropolitan Pier and Exposition
15 Authority, the Regional Transportation Authority, the
16 Suburban Bus Division, the Commuter Rail Division and the
17 Chicago Transit Authority and any other subsidized carrier
18 when authorized by the Legislative Audit Commission. Such
19 audit may be a financial, management or program audit, or any
20 combination thereof.
21 The audit shall determine whether they are operating in
22 accordance with all applicable laws and regulations. Subject
23 to the limitations of this Act, the Legislative Audit
24 Commission may by resolution specify additional
25 determinations to be included in the scope of the audit.
26 The Auditor General may also conduct an audit, when
27 authorized by the Legislative Audit Commission, of any
28 hospital which receives 10% or more of its gross revenues
29 from payments from the State of Illinois, Department of
30 Public Aid, Medical Assistance Program.
31 The Auditor General is authorized to conduct financial
32 and compliance audits of the Illinois Distance Learning
33 Foundation and the Illinois Conservation Foundation.
34 As soon as practical after the effective date of this
35 amendatory Act of 1995, the Auditor General shall conduct a
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1 compliance and management audit of the City of Chicago and
2 any other entity with regard to the operation of Chicago
3 O'Hare International Airport, Chicago Midway Airport and
4 Merrill C. Meigs Field. The audit shall include, but not be
5 limited to, an examination of revenues, expenses, and
6 transfers of funds; purchasing and contracting policies and
7 practices; staffing levels; and hiring practices and
8 procedures. When completed, the audit required by this
9 paragraph shall be distributed in accordance with Section
10 3-14.
11 The Auditor General shall conduct a financial and
12 compliance and program audit of distributions from the
13 Municipal Economic Development Fund during the immediately
14 preceding calendar year pursuant to Section 8-403.1 of the
15 Public Utilities Act at no cost to the city, village, or
16 incorporated town that received the distributions.
17 (Source: P.A. 88-146; 88-591, eff. 8-20-94; 89-386, eff.
18 8-18-95.)
19 Section 5. The Electricity Excise Tax Law is amended by
20 changing Sections 2-7 and 2-9 as follows:
21 (35 ILCS 640/2-7)
22 Sec. 2-7. Collection of electricity excise tax.
23 (a) Beginning with bills for electricity or electric
24 service issued on and after August 1, 1998, the tax imposed
25 by this Law shall be collected from the purchaser, other than
26 a self-assessing purchaser where the delivering supplier or
27 suppliers are notified by the Department that the purchaser
28 has been registered as a self-assessing purchaser for the
29 accounts listed by the self-assessing purchaser as described
30 in Section 2-10 of this Law, by any delivering supplier
31 maintaining a place of business in this State at the rates
32 stated in Section 2-4 with respect to the electricity
33 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:
34 (1) The delivering supplier's name.
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1 (2) The address of the delivering supplier's
2 principal place of business and the address of the
3 principal place of business (if that is a different
4 address) from which the delivering supplier engaged in
5 the business of delivering electricity in this State.
6 (3) The total number of kilowatt-hours which the
7 supplier delivered to or for purchasers during the
8 preceding calendar month and upon the basis of which the
9 tax is imposed.
10 (4) Amount of tax, computed upon Item (3) at the
11 rates stated in Section 2-4.
12 (5) An adjustment for uncollectible amounts of tax
13 in respect of prior period kilowatt-hour deliveries,
14 determined in accordance with rules and regulations
15 promulgated by the Department.
16 (5.5) The amount of credits to which the taxpayer
17 is entitled on account of purchases made under Section
18 8-403.1 of the Public Utilities Act.
19 (6) Such other information as the Department
20 reasonably may require.
21 In making such return the delivering supplier may use any
22 reasonable method to derive reportable "kilowatt-hours" from
23 the delivering supplier's records.
24 If the average monthly tax liability to the Department of
25 the delivering supplier does not exceed $2,500, the
26 Department may authorize the delivering supplier's returns to
27 be filed on a quarter-annual basis, with the return for
28 January, February and March of a given year being due by
29 April 30 of such year; with the return for April, May and
30 June of a given year being due by July 31 of such year; with
31 the return for July, August and September of a given year
32 being due by October 31 of such year; and with the return for
33 October, November and December of a given year being due by
34 January 31 of the following year.
35 If the average monthly tax liability to the Department of
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1 the delivering supplier does not exceed $1,000, the
2 Department may authorize the delivering supplier's returns to
3 be filed on an annual basis, with the return for a given year
4 being due by January 31 of the following year.
5 Such quarter-annual and annual returns, as to form and
6 substance, shall be subject to the same requirements as
7 monthly returns.
8 Notwithstanding any other provision in this Law
9 concerning the time within which a delivering supplier may
10 file a return, any such delivering supplier who ceases to
11 engage in a kind of business which makes the person
12 responsible for filing returns under this Law shall file a
13 final return under this Law with the Department not more than
14 one month after discontinuing such business.
15 Each delivering supplier whose average monthly liability
16 to the Department under this Law was $10,000 or more during
17 the preceding calendar year, excluding the month of highest
18 liability and the month of lowest liability in such calendar
19 year, and who is not operated by a unit of local government,
20 shall make estimated payments to the Department on or before
21 the 7th, 15th, 22nd and last day of the month during which
22 tax liability to the Department is incurred in an amount not
23 less than the lower of either 22.5% of such delivering
24 supplier's actual tax liability for the month or 25% of such
25 delivering supplier's actual tax liability for the same
26 calendar month of the preceding year. The amount of such
27 quarter-monthly payments shall be credited against the final
28 tax liability of such delivering supplier's return for that
29 month. An outstanding credit approved by the Department or a
30 credit memorandum issued by the Department arising from such
31 delivering supplier's overpayment of his or her final tax
32 liability for any month may be applied to reduce the amount
33 of any subsequent quarter-monthly payment or credited against
34 the final tax liability of such delivering supplier's return
35 for any subsequent month. If any quarter-monthly payment is
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1 not paid at the time or in the amount required by this
2 Section, such delivering supplier shall be liable for penalty
3 and interest on the difference between the minimum amount due
4 as a payment and the amount of such payment actually and
5 timely paid, except insofar as such delivering supplier has
6 previously made payments for that month to the Department in
7 excess of the minimum payments previously due.
8 If the Director finds that the information required for
9 the making of an accurate return cannot reasonably be
10 compiled by such delivering supplier within 15 days after the
11 close of the calendar month for which a return is to be made,
12 the Director may grant an extension of time for the filing of
13 such return for a period not to exceed 31 calendar days. The
14 granting of such an extension may be conditioned upon the
15 deposit by such delivering supplier with the Department of an
16 amount of money not exceeding the amount estimated by the
17 Director to be due with the return so extended. All such
18 deposits shall be credited against such delivering supplier's
19 liabilities under this Law. If the deposit exceeds such
20 delivering supplier's present and probable future liabilities
21 under this Law, the Department shall issue to such delivering
22 supplier a credit memorandum, which may be assigned by such
23 delivering supplier to a similar person under this Law, in
24 accordance with reasonable rules and regulations to be
25 prescribed by the Department.
26 The delivering supplier making the return provided for in
27 this Section shall, at the time of making such return, pay to
28 the Department the amount of tax imposed by this Law.
29 A delivering supplier who has an average monthly tax
30 liability of $10,000 or more shall make all payments
31 required by rules of the Department by electronic funds
32 transfer. The term "average monthly tax liability" shall be
33 the sum of the delivering supplier's liabilities under this
34 Law for the immediately preceding calendar year divided by
35 12. Any delivering supplier not required to make payments
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1 by electronic funds transfer may make payments by electronic
2 funds transfer with the permission of the Department. All
3 delivering suppliers required to make payments by electronic
4 funds transfer and any delivering suppliers authorized to
5 voluntarily make payments by electronic funds transfer shall
6 make those payments in the manner authorized by the
7 Department.
8 Each month the Department shall pay into the Public
9 Utility Fund in the State treasury an amount determined by
10 the Director to be equal to 3.0% of the funds received by the
11 Department pursuant to this Section. The remainder of all
12 moneys received by the Department under this Section shall be
13 paid into the General Revenue Fund in the State treasury.
14 (Source: P.A. 90-561, eff. 8-1-98.)
15 Section 10. The Public Utilities Act is amended by
16 changing Section 8-403.1 as follows:
17 (220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1)
18 Sec. 8-403.1. Electricity purchased from qualified solid
19 waste energy facility; tax credit; distributions for economic
20 development.
21 (a) It is hereby declared to be the policy of this State
22 to encourage the development of alternate energy production
23 facilities in order to conserve our energy resources and to
24 provide for their most efficient use.
25 (b) For the purpose of this Section and Section 9-215.1,
26 "qualified solid waste energy facility" means a facility
27 determined by the Illinois Commerce Commission to qualify as
28 such under the Local Solid Waste Disposal Act, to use methane
29 gas generated from landfills as its primary fuel, and to
30 possess characteristics that would enable it to qualify as a
31 cogeneration or small power production facility under federal
32 law.
33 (c) In furtherance of the policy declared in this
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1 Section, the Illinois Commerce Commission shall require
2 electric utilities to enter into long-term contracts to
3 purchase electricity from qualified solid waste energy
4 facilities located in the electric utility's service area,
5 for a period beginning on the date that the facility begins
6 generating electricity and having a duration of not less than
7 10 years in the case of facilities fueled by
8 landfill-generated methane, or 20 years in the case of
9 facilities fueled by methane generated from a landfill owned
10 by a forest preserve district. The purchase rate contained
11 in such contracts shall be equal to the average amount per
12 kilowatt-hour paid from time to time by the unit or units of
13 local government in which the electricity generating
14 facilities are located, excluding amounts paid for street
15 lighting and pumping service.
16 (d) Whenever a public utility is required to purchase
17 electricity pursuant to subsection (c) above, it shall be
18 entitled to credits in respect of its obligations to remit to
19 the State pay taxes it has collected under the Electricity
20 Excise Tax Law Public Utilities Revenue Act equal to the
21 amounts, if any, by which payments for such electricity
22 exceed (i) the then current rate at which the utility must
23 purchase the output of qualified facilities pursuant to the
24 federal Public Utility Regulatory Policies Act of 1978, less
25 (ii) any costs, expenses, losses, damages or other amounts
26 incurred by the utility, or for which it becomes liable,
27 arising out of its failure to obtain such electricity from
28 such other sources. The amount of any such credit shall, in
29 the first instance, be determined by the utility, which shall
30 make a monthly report of such credits to the Illinois
31 Commerce Commission and, on its monthly tax return, to the
32 Illinois Department of Revenue. Under no circumstances shall
33 a utility be required to purchase electricity from a
34 qualified solid waste energy facility at the rate prescribed
35 in subsection (c) of this Section if such purchase would
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1 result in estimated tax credits that exceed, on a monthly
2 basis, the utility's estimated obligation to remit to the
3 State pay taxes it has collected under the Electricity Excise
4 Tax Law Public Utilities Revenue Act. The owner or operator
5 shall negotiate facility operating conditions with the
6 purchasing utility in accordance with that utility's posted
7 standard terms and conditions for small power producers. If
8 the Department of Revenue disputes the amount of any such
9 credit, such dispute shall be decided by the Illinois
10 Commerce Commission. Whenever a qualified solid waste energy
11 facility has paid or otherwise satisfied in full the capital
12 costs or indebtedness incurred in developing and implementing
13 the qualified facility, the qualified facility shall
14 reimburse the Public Utility Utilities Fund and the General
15 Revenue Fund in the State treasury for the actual reduction
16 in payments to those Funds that Fund caused by this
17 subsection (d) in a manner to be determined by the Illinois
18 Commerce Commission and based on the manner in which revenues
19 for those Funds that Fund 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
35 outside the boundaries of the State of Illinois before
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1 displacing electricity generated from coal mined and
2 purchased within the State of Illinois, to the extent
3 possible, and (2) electric utilities report annually to the
4 Commission on the extent of such displacements.
5 (h) Nothing in this Section is intended to cause an
6 electric utility that is required to purchase power hereunder
7 to incur any economic loss as a result of its purchase. All
8 amounts paid for power which a utility is required to
9 purchase pursuant to subparagraph (c) shall be deemed to be
10 costs prudently incurred for purposes of computing charges
11 under rates authorized by Section 9-220 of this Act. Tax
12 credits provided for herein shall be reflected in charges
13 made pursuant to rates so authorized to the extent such
14 credits are based upon a cost which is also reflected in such
15 charges.
16 (i) Beginning in February 1999 and through January 2009,
17 each qualified solid waste energy facility that sells
18 electricity to an electric utility at the purchase rate
19 described in subsection (c) shall file with the State
20 Treasurer on or before the 15th of each month a form,
21 prescribed by the State Treasurer, that states the number of
22 kilowatt hours of electricity for which payment was received
23 at that purchase rate from electric utilities in Illinois
24 during the immediately preceding month. This form shall be
25 accompanied by a payment from the qualified solid waste
26 energy facility in an amount equal to six-tenths of a mill
27 ($0.0006) per kilowatt hour of electricity stated on the
28 form. Payments received by the State Treasurer shall be
29 deposited into the Municipal Economic Development Fund, a
30 trust fund created outside the State treasury. The State
31 Treasurer may invest the moneys in the Fund in any investment
32 authorized by the Public Funds Investment Act, and investment
33 income shall be deposited into and become part of the Fund.
34 Moneys in the Fund shall be used by the State Treasurer as
35 provided in subsection (j). The obligation of a qualified
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1 solid waste energy facility to make payments into the
2 Municipal Economic Development Fund shall terminate upon
3 either: (1) expiration or termination of a facility's
4 contract to sell electricity to an electric utility at the
5 purchase rate described in subsection (c); or (2) entry of an
6 enforceable, final, and non-appealable order by a court of
7 competent jurisdiction that Public Act 89-448 is invalid.
8 Payments by a qualified solid waste energy facility into the
9 Municipal Economic Development Fund do not relieve the
10 qualified solid waste energy facility of its obligation to
11 reimburse the Public Utility Fund and the General Revenue
12 Fund for the actual reduction in payments to those Funds as a
13 result of credits received by electric utilities under
14 subsection (d).
15 (j) The State Treasurer, without appropriation, must
16 make distributions immediately after January 15, April 15,
17 July 15, and October 15 of each year, up to maximum aggregate
18 distributions of $500,000 for the distributions made in the 4
19 quarters beginning with the April distribution and ending
20 with the January distribution, from the Municipal Economic
21 Development Fund to each city, village, or incorporated town
22 that has within its boundaries an incinerator that: (1) uses
23 municipal waste as its primary fuel to generate electricity;
24 (2) was determined by the Illinois Commerce Commission to
25 qualify as a qualified solid waste energy facility prior to
26 the effective date of Public Act 89-448; and (3) commenced
27 operation prior to January 1, 1998. Total distributions in
28 the aggregate to all qualified cities, villages, and
29 incorporated towns in the 4 quarters beginning with the April
30 distribution and ending with the January distribution shall
31 not exceed $500,000. The amount of each distribution shall
32 be determined pro rata based on the population of the city,
33 village, or incorporated town compared to the total
34 population of all cities, villages, and incorporated towns
35 eligible to receive a distribution. Distributions received
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1 by a city, village, or incorporated town must be held in a
2 separate account and may be used only to promote and enhance
3 industrial, commercial, residential, service, transportation,
4 and recreational activities and facilities within its
5 boundaries, thereby enhancing the employment opportunities,
6 public health and general welfare, and economic development
7 within the community, including administrative expenditures
8 exclusively to further these activities. These funds,
9 however, shall not be used by the city, village, or
10 incorporated town, directly or indirectly, to purchase,
11 lease, operate, or in any way subsidize the operation of any
12 incinerator, and these funds shall not be paid, directly or
13 indirectly, by the city, village, or incorporated town to the
14 owner, operator, lessee, shareholder, or bondholder of any
15 incinerator. Moreover, these funds shall not be used to pay
16 attorneys fees in any litigation relating to the validity of
17 Public Act 89-448. Nothing in this Section prevents a city,
18 village, or incorporated town from using other corporate
19 funds for any legitimate purpose. For purposes of this
20 subsection, the term "municipal waste" has the meaning
21 ascribed to it in Section 3.21 of the Environmental
22 Protection Act.
23 (k) If maximum aggregate distributions of $500,000 under
24 subsection (j) have been made after the January distribution
25 from the Municipal Economic Development Fund, then the
26 balance in the Fund shall be refunded to the qualified solid
27 waste energy facilities that made payments that were
28 deposited into the Fund during the previous 12-month period.
29 The refunds shall be prorated based upon the facility's
30 payments in relation to total payments for that 12-month
31 period.
32 (l) Beginning January 1, 2000, and each January 1
33 thereafter, each city, village, or incorporated town that
34 received distributions from the Municipal Economic
35 Development Fund, continued to hold any of those
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1 distributions, or made expenditures from those distributions
2 during the immediately preceding year shall submit to a
3 financial and compliance and program audit of those
4 distributions performed by the Auditor General at no cost to
5 the city, village, or incorporated town that received the
6 distributions. The audit should be completed by June 30 or
7 as soon thereafter as possible. The audit shall be submitted
8 to the State Treasurer and those officers enumerated in
9 Section 3-14 of the Illinois State Auditing Act. If the
10 Auditor General finds that distributions have been expended
11 in violation of this Section, the Auditor General shall refer
12 the matter to the Attorney General. The Attorney General may
13 recover, in a civil action, 3 times the amount of any
14 distributions illegally expended. For purposes of this
15 subsection, the terms "financial audit," "compliance audit",
16 and "program audit" have the meanings ascribed to them in
17 Sections 1-13 and 1-15 of the Illinois State Auditing Act.
18 (Source: P.A. 89-448, eff. 3-14-96.)
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.".
21 Submitted on January , 1999.
22 ______________________________ _____________________________
23 Senator Rauschenberger Representative Novak
24 ______________________________ _____________________________
25 Senator Mahar Representative Hannig
26 ______________________________ _____________________________
27 Senator Maitland Representative Murphy
28 ______________________________ _____________________________
29 Senator Shaw Representative Churchill
30 ______________________________ _____________________________
31 Senator Jacobs Representative Tenhouse
32 Committee for the Senate Committee for the House