Section 445.10  Applicability

This Part applies to each electric utility, as defined in Section 3-105 of The Public Utilities Act (Ill. Rev. Stat. 1987, ch. 111 2/3, par. 3-105).

Section 445.20  Definitions

            "Act" means The Public Utilities Act (Ill. Rev. Stat. 1987, ch. 111⅔, pars. 1-101 et seq.).

            "Avoided Costs" means the incremental costs to the electric utility of electric energy which, but for the purchase from the qualified solid waste energy facility, the utility would generate itself or purchase from another source.

            "Commission" means the Illinois Commerce Commission.

            "Economic Losses" means an increase in the electric utility's revenue requirements as a result of electric energy purchases from a qualified solid waste energy facility that is not recovered either from tax credits pursuant to this Part or from ratepayers.

            "Electric Energy" refers to both the energy and capacity purchased by an electric utility from a qualified solid waste energy facility.

            "Fuel Loading" means the total fuel consumed at a qualified solid waste energy facility during the reported or projected period in terms of million Btus.

            "Qualified Solid Waste Energy Facility" means a facility that meets the criteria set forth in 18 CFR 292 in effect on January 1, 1989 (hereinafter referred to as 18 CFR 292), and the Local Solid Waste Disposal Act (Ill. Rev. Stat. 1987, ch. 85, par. 5901 et seq.), hereinafter referred to as the "Local Solid Waste Disposal Act," or an electric generating facility which uses methane gas generated from landfills and meets such requirements of 18 CFR 292.  No incorporation of 18 CFR 292 in this Part includes any later amendment or edition.

            "Qualifying Facility" means a cogeneration facility or a small power production facility which meets the criteria for qualification set forth in 18 CFR 292, Subpart B.

            "Solid Waste" means "waste," as defined in Section 3.53 of the Environmental Protection Act (Ill. Rev. Stat. 1987, ch. 111⅔, par. 1003.53), which is in solid or semi-solid form, provided that "solid waste" does not include that portion of material that is intended or collected to be recycled.

            "Solid Waste Throughput Volume" means the yearly design capacity of a qualified solid waste energy facility when only solid waste is consumed as fuel.

Section 445.30  Availability of Benefits

a)         The benefits of this Part shall apply to any qualified solid waste energy facility.  The owner(s) or operator of such a facility shall petition the Commission for a determination that the facility meets the requirements and criteria specified in the Act and this Part.  These requirements include complying with the procedures for obtaining qualifying status set forth in 18 CFR 292 and with the Local Solid Waste Disposal Act.

b)         In demonstrating compliance with 18 CFR 292, the owner(s) or operator of a facility must file with the Commission a copy of:

1)         the notice filed with the Federal Energy Regulatory Commission pursuant to 18 CFR 292.207, or

2)         certification as a qualifying facility issued by the Federal Energy Regulatory Commission or a successor agency.

c)         In demonstrating compliance with the Local Solid Waste Disposal Act, the owner(s) or operator must file with the Commission evidence that a solid waste management plan or Solid Waste Energy Facility Plan provided for in Section 3.1 of the Local Solid Waste Disposal Act has been filed with and approved by the Illinois Environmental Protection Agency.

Section 445.40  Terms and Conditions of Service

a)         The electric utility shall negotiate terms and conditions of service with the owner(s) or developer(s) of a qualified solid waste energy facility in accordance with the utility's standard terms and conditions of service for small power producers compiled pursuant to 83 Ill. Adm. Code 430.40.

b)         Electric utilities shall be required to enter into long-term contracts to purchase electric energy from qualified solid waste energy facilities located in the electric utility's service area for a period beginning on the date the qualified solid waste energy facility begins generating electric energy, and continuing for a minimum of twenty years thereafter, including qualified solid waste energy facilities fueled by landfill-generated methane gas which are located at landfills owned by a forest preserve district or ten years in the case of qualified solid waste energy facilities fueled by landfill-generated methane gas which are not located at landfills owned by a forest preserve district.

(Source:  Amended at 16 Ill. Reg. 2535, effective February 1, 1992)

Section 445.50  Reporting Requirements

a)         The owner(s) or operator of a qualified solid waste energy facility (excluding facilities fueled by methane gas generated from landfills) shall annually report to the Commission that the facility has met the requirements of the Illinois Environmental Protection Agency pursuant to the Local Solid Waste Disposal Act.

b)         The owner(s) or operator of a qualified solid waste energy facility (excluding facilities fueled by methane gas generated from landfills) shall certify to the Commission, on an annual basis following the date of commercial operation of the facility, that solid waste is expected to comprise, at the minimum, 95 percent of the annual fuel loading for the following twelve months.  In December of each year following the year of the facility's commercial operation date, the owner(s) or operator shall report the actual fuel loading for the twelve month period ending on November 30th of the same year.  The use of natural gas, oil, or other fuels in connection with ignition, start-up, testing, flame stabilization and control, maintenance of minimum combustion temperatures, and during unanticipated outages of the solid waste sources shall not be included in any calculation of annual fuel loading.

c)         The owner(s) or operator of a qualified solid waste energy facility (excluding facilities fueled by methane gas generated from landfills) shall certify to the Commission, on an annual basis following the date of commercial operation of the facility, that the solid waste throughput volume for the following twelve months shall, at a minimum, be 66 percent of the yearly design capacity of the facility.  In December of each year following the year of the facility's commercial operation date, the owner(s) or operator shall report the throughput volume for the twelve month period ending on November 30th of the same year.

d)         The owner(s) or operator of a qualified solid waste energy facility shall notify the Commission and all electric utilities to which the facility sells electric energy within 30 days of the date of a decision by a court or agency of competent jurisdiction in which the facility loses its status under the Act or this Part.  The notification shall state that the facility no longer qualifies, the reasons therefor, and the anticipated date when the facility shall again qualify under the Act or this Part.

e)         Displacement reports

1)         Each electric utility shall report to the Commission in December of each year an estimate of the amounts and types of fuels displaced pursuant to Section 8-403.1(g) of the Act.  Each utility also shall report an estimate of additional costs it incurred to alter its economic dispatch procedures pursuant to Section 8-403.1(g) of the Act.  These costs may include added fuel costs caused by deviating from economic dispatch, computer software costs to alter plant dispatching, monitoring and control costs, as well as any other costs incurred to comply with Section 8-403.1(g) of the Act.

2)         In the event that an electric utility is constrained from displacement of fuels by existing technical, contractual or other circumstances, the utility shall report such circumstances and show why displacement is not practicable.  The Commission will weigh the practicability of displacement against the general requirement of displacement pursuant to Section 8-403.1(g) of the Act.  In case of a successful showing of cause for exemption from displacement, the utility need not comply with the reporting requirements of subsection (e).

f)         Each electric utility shall report to the Commission in December of each year any economic loss it incurred during the twelve month period ending on November 30th of the same year in complying with the requirements of Section 8-403.1 of the Act and this Part.

g)         Within 60 days of the signing of a contract with a qualified solid waste energy facility, each electric utility shall report to the Commission the amounts of electric energy contracted for each year of the contract period.

h)         Each electric utility shall list separately in its monthly reports of tax credits to the Commission and the Illinois Department of Revenue:

1)         any reasonable and necessary costs incurred in displacing electric energy from qualifying facilities because of purchases made pursuant to Section 8-403.1 of the Act, and

2)         its avoided total costs from electric energy purchases from qualified solid waste energy facilities and a breakdown of these costs into energy and capacity as defined by 83 Ill. Adm. Code 430.30.

i)          Each utility shall provide to all qualified solid waste energy facilities from which the utility purchases electric energy the information submitted to the Commission under subsections (e), (f), (g), (h), and a detailed breakdown of costs described in Section 8-403.1(d)(ii) of the Act assigned to the qualified solid waste energy facility specified.  A facility may file a petition with the Commission under Section 445.80 contesting the validity of the information.

j)          In the event that a qualified solid waste facility fails to comply with the certification requirements of subsections (a), (b) or (c), or in the event that for an annual reporting period as referred in the above sections (b) and (c) the facility ceases to be in compliance with the qualifying requirements of this Part or Section 8-403.1 of the Act, provided that the owner(s) or operator of the facility makes efforts to remedy noncompliance, the facility shall have 90 days in which to cure its noncompliance.  If at the end of the 90-day cure period the facility has failed to comply with the said requirements, the purchase rate provided in Section 445.60(b) shall be suspended until such time as the facility certifies that it has complied with this Part, which in the case of subsection (a) shall be at any time, and in the case of subsection (b) or (c) shall be for the latest 12 months of facility operation.  If the facility continues to maintain its status as a qualifying facility, it shall receive during the suspension period the rate that the utility would have paid for purchases of electric energy from a qualifying facility pursuant to 83 Ill. Adm. Code 430.80.

(Source:  Amended at 16 Ill. Reg. 2535, effective February 1, 1992)

Section 445.60  Purchase Rates

a)         Within 60 days of the effective date of this Part, each electric utility shall file and at all times thereafter have on file with the Commission tariffs or riders applicable to purchases of electric energy generated from qualified solid waste energy facilities.

b)         Each tariff or rider shall at a minimum include:

1)         the billing period;

2)         a reconciliation procedure; and

3)         the methodology for determining purchase rates, including the methodology for determining the rate at which free service would have been billed had it not been provided free of charge.  The purchase rate contained in tariffs and riders shall be equal to the average price of electricity per kilowatt-hour (excluding amounts paid for street lighting and pumping) paid for by a unit or units of local government to the electric utility during the latest twelve month period, including free service electricity, if any, at the rate that the unit or units of local government would have been billed had the electricity not been provided free of charge.

c)         In the event that the purchase rate pursuant to Section 8-403.1(c) of the Act applicable to all electric energy purchased by a utility from qualified solid waste energy facilities is expected to result in monthly tax credits for a utility which will exceed its tax obligations under The Public Utilities Revenue Act (Ill. Rev. Stat. 1987, ch. 120, pars. 468 et seq.), qualified solid waste energy facilities shall be paid the purchase rate specified in Section 8-403.1(c) of the Act on a "first come, first served" basis determined from the date that the facility has obtained, and continues to hold, a valid development permit under Section 39 of the Environmental Protection Act (Ill. Rev. Stat. 1987, ch. 111½, par. 1039) and, for facilities other than those fueled by methane gas generated from landfills, a service agreement with a unit or units of local government.  Notice of said approval shall be provided to the Commission. After all available tax credits are used, remaining electric energy purchases from qualified solid waste energy facilities shall be paid at the elected rate under 83 Ill. Adm. Code 430.80, notwithstanding the contracted for purchase rate.

Section 445.70  Tax Credits

a)         Calculation of monthly tax credit

1)         Each utility shall calculate tax credits using the following formula to assure compliance with Section 8-403.1(d) of the Act.

2)         At the time the owner(s) or developer(s) of a qualified solid waste energy facility enters into a contract with an electric utility for the sale of electric energy to the electric utility, the owner(s) or developer(s) of a qualified solid waste energy facility may elect one of the methodologies specified in 83 Ill. Adm. Code 430.80.  In the event of an impasse in negotiations between the utility and the facility, either party may request a determination of the issues by the Commission, based on the criteria in 83 Ill. Adm. Code 430.80

b)         Reimbursement by qualified solid waste energy facility

1)         The owner(s) or operator of a qualified solid waste energy facility shall file with the Commission and the Illinois Department of Revenue a proposed reimbursement schedule.  The schedule shall be filed no later than one year prior to the start of the reimbursement period.  The schedule shall state the anticipated annual repayments over the reimbursement period.

2)         The starting date of reimbursement to the General Revenue Fund of tax credits accumulated for a qualified solid waste energy facility or an electric generating facility fueled by landfill generated methane gas located at a landfill owned by a forest preserve district shall not exceed twenty years from the date the facility begins commercial operation, after all operational and acceptance testing has been completed.  For an electric generating facility fueled by methane gas generated from landfills, the starting date of reimbursement shall not exceed ten years from the date the facility begins commercial operation, after all operational and acceptance testing has been completed.

3)         The reimbursement payments of a qualified solid waste energy facility shall equal the sum of the tax credits accumulated under Section 8-403.1(d) of the Act.

4)         All tax credits accumulated for a qualified solid waste energy facility shall be fully reimbursed by that facility to the General Revenue Fund by the end of the actual useful life of the facility.

5)         In no event shall a utility be required to reimburse the General Revenue Fund for tax credits received under Section 8-403.1 of the Act or this Part.

c)         Tax credit disputes

1)         The Illinois Department of Revenue, the owner(s) or operator of any qualified solid waste energy facility, or the involved unit or units of local government may request a decision by the Commission concerning any costs relating to tax credits claimed by the utility, or any other tax credit dispute with a utility, in accordance with the Act or this Part.

2)         Any petition by the Illinois Department of Revenue or a qualified solid waste energy facility requesting a decision pursuant to subsection (c)(1) shall comply with the Commission's Rules of Practice (83 Ill. Adm. Code 200).

(Source:  Amended at 16 Ill. Reg. 2535, effective February 1, 1992)

Section 445.80  Remedy

A utility or a qualified solid waste energy facility may file a petition with the Commission alleging violation of the Act or this Part.  Any petition filed pursuant to this Section shall comply with the Commission's Rules of Practice (83 Ill. Adm. Code 200).