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| Public Act 096-0449 |
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AN ACT concerning safety.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Public Utilities Act is amended by changing | ||||
Section 8-403.1 as follows:
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(220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1)
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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.
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(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.
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(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
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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
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street lighting and pumping service.
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(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 taxes it has
collected under the Electricity Excise | ||
Tax Law 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
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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
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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 taxes it | ||
has
collected under the Electricity Excise Tax Law. 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 solid waste energy facility, whenever the qualified | ||
solid waste energy facility ceases to operate and produce | ||
electricity from methane gas generated from landfills, or at | ||
the end of the contract entered into pursuant to subsection (c) | ||
of this Section, whichever occurs first, the qualified solid | ||
waste energy facility shall
reimburse the Public Utility Fund | ||
and the General Revenue
Fund in the State treasury for the | ||
actual
reduction in payments to those Funds caused by this
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subsection (d) in a
manner to be determined by the Illinois | ||
Commerce Commission and based on
the manner in which revenues | ||
for those Funds were reduced. The payments shall be made to the | ||
Illinois Commerce Commission, which shall determine the | ||
appropriate disbursements to the Public Utility Fund and the | ||
General Revenue Fund based on this subsection (d).
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(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.
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(e-5) A qualified solid waste energy facility may receive | ||
the purchase rate provided in subsection (c) of this Section | ||
only for kilowatt-hours generated by the use of methane
gas | ||
generated from landfills. The purchase rate provided in | ||
subsection (c) of this Section does not apply to electricity | ||
generated by the use of a fuel that is not methane gas | ||
generated from landfills. If the Illinois Commerce Commission | ||
determines that a qualified solid waste energy facility has | ||
violated the requirement regarding the use of methane gas | ||
generated from a landfill as set forth in this subsection | ||
(e-5), then the Commission shall issue an order requiring that | ||
the qualified solid waste energy facility repay the State for | ||
all dollar amounts of electricity sales that are determined by | ||
the Commission to be the result of the violation. As part of | ||
that order, the Commission shall have the authority to revoke | ||
the facility's approval to act as a qualified solid waste | ||
energy facility granted by the Commission under this Section. | ||
If the amount owed by the qualified solid waste energy facility | ||
is not received by the Commission within 90 days after the date | ||
of the Commission's order that requires repayment, then the | ||
Commission shall issue an order that revokes the facility's | ||
approval to act as a qualified solid waste energy facility | ||
granted by the Commission under this Section. The Commission's | ||
action that vacates prior qualified solid waste energy facility | ||
approval does not excuse the repayment to the State treasury | ||
required by subsection (d) of this Section for utility tax | ||
credits accumulated up to the time of the Commission's action.
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A qualified solid waste energy facility must receive Commission | ||
approval before it may use any fuel in addition to methane gas | ||
generated from a landfill in order to generate electricity. If | ||
a qualified solid waste energy facility petitions the | ||
Commission to use any fuel in addition to methane gas generated | ||
from a landfill to generate electricity, then the Commission | ||
shall have the authority to do the following: | ||
(1) establish the methodology for determining the | ||
amount of electricity that is generated by the use of | ||
methane gas generated from a landfill and the amount that | ||
is generated by the use of other fuel; | ||
(2) determine all reporting requirements for the | ||
qualified solid waste energy facility that are necessary | ||
for the Commission to determine the amount of electricity | ||
that is generated by the use of methane gas from a landfill | ||
and the amount that is generated by the use of other fuel | ||
and the resulting payments to the qualified solid waste | ||
energy facility; and | ||
(3) require that the qualified solid waste energy | ||
facility, at the qualified solid waste energy facility's | ||
expense, install metering equipment that the Commission | ||
determines is necessary to enforce compliance with this | ||
subsection (e-5). | ||
A public utility that is required to enter into a long-term | ||
purchase contract with a qualified solid waste energy facility | ||
has no duty to determine whether the electricity being | ||
purchased was generated by the use of methane gas generated | ||
from a landfill or was generated by the use of some other fuel | ||
in violation of the requirements of this subsection (e-5).
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(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.
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(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
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within the State of Illinois, to the extent possible, and (2) | ||
electric
utilities report annually to the Commission on the | ||
extent of such
displacements.
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(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.
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(i) Beginning in February 1999 and through January 2013 | ||
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 Department
of | ||
Revenue on or before the 15th of each month a form, prescribed | ||
by the
Department of Revenue, 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. Beginning
on the | ||
effective date of this amendatory Act of the 92nd General
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Assembly, a qualified solid waste energy facility must file the | ||
form required
under this subsection (i) before the 15th of each | ||
month regardless of whether
the facility received any payment | ||
in the previous month. Payments received by
the Department of | ||
Revenue shall be deposited into the Municipal Economic
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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). | ||
Beginning on July 1, 2006 through January 31, 2013 2009, | ||
each month the State Treasurer shall certify the following to | ||
the State Comptroller: | ||
(A) the amount received by the Department of Revenue | ||
under this subsection (i) during the immediately preceding | ||
month; and | ||
(B) the amount received by the Department of Revenue | ||
under this subsection (i) in the corresponding month in | ||
calendar year 2002. | ||
As soon as practicable after receiving the certification from | ||
the State Treasurer, the State Comptroller shall transfer from | ||
the General Revenue Fund to the Municipal Economic Development | ||
Fund in the State treasury an amount equal to the amount by | ||
which the amount calculated under item (B) of this paragraph | ||
exceeds the amount calculated under item (A) of this paragraph, | ||
if any.
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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
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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
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for the actual reduction in payments
to those Funds as a result | ||
of credits received by electric utilities under
subsection (d).
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A qualified solid waste energy facility that fails to | ||
timely file the
requisite form and payment as required by this | ||
subsection (i) shall be subject
to penalties and interest in | ||
conformance with the provisions of the Illinois
Uniform Penalty | ||
and Interest Act.
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Every qualified solid waste energy facility subject to the | ||
provisions of this
subsection (i) shall keep and maintain | ||
records and books of its sales pursuant
to subsection (c), | ||
including payments received from those sales and the
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corresponding tax payments made in accordance with this | ||
subsection (i), and for
purposes of enforcement of this | ||
subsection (i) all such books and records shall
be subject to | ||
inspection by the Department of Revenue or its duly authorized
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agents or employees.
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When a qualified solid waste energy facility fails to file | ||
the form or make
the payment required under this subsection | ||
(i), the Department of Revenue, to
the extent that it is | ||
practical, may enforce the payment obligation in a manner
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consistent with Section 5 of the Retailers' Occupation Tax Act, | ||
and if
necessary may impose and enforce a tax lien in a manner | ||
consistent with
Sections 5a, 5b, 5c, 5d, 5e, 5f,
5g, and 5i of | ||
the Retailers' Occupation Tax Act. No tax lien may be imposed
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or enforced, however, unless a qualified solid waste energy | ||
facility fails to
make the payment required under this | ||
subsection (i). Only to the extent
necessary and for the | ||
purpose of enforcing this subsection (i), the Department
of | ||
Revenue may secure necessary information from a qualified solid | ||
waste energy
facility in a manner consistent with Section 10 of
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the Retailers' Occupation Tax Act.
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All information received by the Department of Revenue in | ||
its administration
and enforcement of this subsection (i) shall | ||
be confidential in a manner
consistent with Section 11 of the | ||
Retailers' Occupation Tax Act. The
Department of Revenue may | ||
adopt rules to implement the provisions of this
subsection (i).
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For purposes of implementing the maximum aggregate | ||
distribution provisions in
subsections (j) and (k), when a | ||
qualified solid waste energy facility makes a
late payment to | ||
the Department of Revenue for deposit into the Municipal
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Economic Development Fund, that payment and deposit shall be | ||
attributed to the
month and corresponding quarter in which the | ||
payment should have been made, and
the Treasurer shall make | ||
retroactive distributions or refunds, as the case may
be, | ||
whenever such late payments so require.
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(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
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the January distribution,
from the Municipal Economic | ||
Development Fund to each city, village, or
incorporated town | ||
located in Cook County that has approved construction within | ||
its boundaries of an incinerator
that will burn recovered wood | ||
processed for fuel to generate electricity and will commence | ||
operation after 2009 : (1) uses
or, on the effective date of | ||
Public Act 90-813, used
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
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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.
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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,
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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. Distributions may also be used for cleanup of open | ||
dumping from vacant properties and the removal of structures | ||
condemned by the city, village, or incorporated town. These
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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,
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the term "municipal waste" has the meaning ascribed to it in | ||
Section 3.290 of the Environmental Protection Act.
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(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.
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(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
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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.
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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.
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(m) On and after the effective date of this amendatory Act | ||
of the 94th General Assembly, beginning on the first date on | ||
which renewable energy certificates or other saleable | ||
representations are sold by a qualified solid waste energy | ||
facility, with or without the electricity generated by the | ||
facility, and utilized by an electric utility or another | ||
electric supplier to comply with a renewable energy portfolio | ||
standard mandated by Illinois law or mandated by order of the | ||
Illinois Commerce Commission, that qualified solid waste | ||
energy facility may not sell electricity pursuant to this | ||
Section and shall be exempt from the requirements of | ||
subsections (a) through (l) of this Section, except that it | ||
shall remain obligated for any reimbursements required under | ||
subsection (d) of this Section. All of the provisions of this | ||
Section shall remain in full force and effect with respect to | ||
any qualified solid waste energy facility that sold electric | ||
energy pursuant to this Section at any time before July 1, 2006 | ||
and that does not sell renewable energy certificates or other | ||
saleable representations to meet the requirements of a | ||
renewable energy portfolio standard mandated by Illinois law or | ||
mandated by order of the Illinois Commerce Commission. | ||
(n) Notwithstanding any other provision of law to the | ||
contrary, beginning on July 1, 2006, the Illinois Commerce | ||
Commission shall not issue any order determining that a | ||
facility is a qualified solid waste energy facility unless the | ||
qualified solid waste energy facility was determined by the | ||
Illinois Commerce Commission to be a qualified solid waste | ||
energy facility before July 1, 2006. As a guide to the intent,
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interpretation, and application of this amendatory Act of the
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94th General Assembly, it is hereby declared to be the policy
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of this State to honor each qualified solid waste energy | ||
facility
contract in existence on the effective date of this | ||
amendatory Act of
the 94th General Assembly if the qualified | ||
solid waste energy
facility continues to meet the requirements | ||
of this Section for
the duration of its respective contract | ||
term. | ||
(Source: P.A. 94-836, eff. 6-6-06.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law. | ||