SB1820sam002 102ND GENERAL ASSEMBLY

Sen. David Koehler

Filed: 4/9/2021

10200SB1820sam002 LRB102 17023 HLH 24742 a

AMENDMENT TO SENATE BILL 1820

AMENDMENT NO. ______. Amend Senate Bill 1820 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Energy Community Reinvestment Act.

Section 5. Energy Community Transition Payments.

(a) For purposes of this Section:

"Generation facility" means a plant or equipment used to produce, manufacture, or otherwise generate electricity that is not a transmission facility or an energy storage system procured by a distribution company for support in delivering energy services to end users.

"Wholesale generation company" means a company engaged in the business of producing, manufacturing, or generating electricity for sale at wholesale only.

(b) Any wholesale generation company that does not rely on a renewable, or such company's affiliate, subsidiary, or parent company, that currently has no binding agreement for payments in lieu of transition payments to all taxing districts in which the company's generation facilities are located shall be required to make transition payments to any taxing district in which an affiliated generation facility, or part thereof, is located and has been devalued for property tax payment purposes; provided, however, that where such a binding agreement for the payment in lieu of transition payments has been entered into on or after the effective date of this Act, that agreement shall govern, and that generation facility shall be exempt from the provisions of this Act. Those payments shall offset any reductions of property taxes as a result of any devaluation of that generation facility. This Section does not provide for any exemption from property tax and is in addition to any property tax obligations.

(c) For the taxable year in which the wholesale generation company begins decommissioning and for the 3 subsequent taxable years, transition payments shall be the difference between the property taxes due for that property for the current taxable year and the property taxes due for that property for taxable year 2020. From the fifth taxable year following the beginning of the decommissioning process until the tenth taxable year, transition payments shall be calculated as follows:

(1) For taxable year 5, the amount shall be equivalent to 90% of the difference between the equalized assessed value of the property as of January 1, 2020 and the equalized assessed value of the property as of taxable year 5, multiplied by the applicable tax rate for that property for the taxable year;

(2) For taxable year 6, the amount shall be equivalent to 80% of the difference between the equalized assessed value of the property as of January 1, 2020 and the equalized assessed value of the property as of taxable year 6, multiplied by the applicable tax rate for that property for the taxable year;

(3) For taxable year 7, the amount shall be equivalent to 70% of the difference between the equalized assessed value of the property as of January 1, 2020 and the fair cash value of the property as of taxable year 7, multiplied by the applicable tax rate for that property for the taxable year;

(4) For taxable year 8, the amount shall be equivalent to 60% of the difference between the equalized assessed value of the property as of January 1, 2020 and the equalized assessed value of the property as of taxable year 8, multiplied by the applicable tax rate for that property for the taxable year;

(5) For taxable year 9, the amount shall be equivalent to 50% of the difference between the equalized assessed value of the property as of January 1, 2020 and the equalized assessed value of the property as of taxable year 9, multiplied by the applicable tax rate for the property for the taxable year; and

(6) For taxable year 10, the amount shall be equivalent to 40% of the difference between the equalized assessed value of the property as of January 1, 2020 and the equalized assessed value of the property as of taxable year 10, multiplied by the applicable tax rate for the property for the taxable year.

(d) Any such transition payments shall be included in the tax base for purposes of determining the taxing district's levy. The Department of Revenue may issue rules and guidelines for implementing the provisions of this Section consistent with preserving the transition payment amounts in the local tax base for such purposes.

For purposes of this Act only, a coal plant begins decommissioning following a plant closure announcement whenever at least one of the following occurs: (1) electric generating equipment is shut down; (2) operating permits or licenses are surrendered; or (3) unused materials associated with the generation process are removed. For purposes of this Act only, a nuclear plant begins decommissioning when it submits a written certification that it has permanently ceased operations to the Nuclear Regulatory Commission pursuant Section 50.82(a) of Title 10 of the Code of Federal Regulations.

(e) A generation company or wholesale generation company may, in order to comply with its transition payment liability obligation, execute an agreement for payment in lieu of transition payments with the taxing districts in which such generation facility is sitting, and said company shall be exempt from transition payments, in whole or in part, as provided in any such agreements during terms thereof. Any such agreement shall be the result of good faith negotiations and shall be the equivalent of the property tax obligation based on full and fair cash valuation. Any such negotiated amount shall be included in the tax base for purposes of determining the levy. The Department of Revenue may issue rules and guidelines for implementing the provisions of this Section consistent with preserving the negotiated payment amount in the local tax base for such purpose.

(f) A taxing district, acting by and through its governing body and assessors, is hereby authorized to enter into an agreement with a wholesale energy generator concerning payments in lieu of transition payments. A taxing district and wholesale energy generator may agree to ratify any such agreement entered into and in effect prior to the enactment of this act in all respects and as though this Act had been in full force and effect at the time of the execution of said agreement.

(g) Agreements between wholesale generation companies and host taxing districts shall be executed as a result of good faith negotiations. Such agreements shall cover a period of time equal to a minimum of ten years. If an agreement on such payment in lieu of transition payments cannot be effected through good faith negotiations, the parties shall submit to arbitration and such arbitration shall be performed by the Department of Revenue or a state-certified professional arbitrator or arbitration firm appointed by the Department of Revenue.

(h) The Department of Revenue may adopt rules and may issue guidance for implementing the provisions of this Section consistent with the goal of preserving the transition payment and in lieu of transition payment in the local tax base.

Section 10. The Unemployment Insurance Act is amended by changing Section 408.5 as follows:

(820 ILCS 405/408.5)

Sec. 408.5. Additional benefits.

A. Additional benefits shall be available:

1. only with respect to benefit years beginning on or after April 1, 2017 2015 and prior to the effective date of this amendatory Act of the 102nd 99th General Assembly; and

2. to an otherwise eligible individual: (a) who was certified as eligible to apply for adjustment assistance under the federal Trade Act of 1974, as amended, on or after January 1, 2015; (b) who has not received the maximum amount of trade readjustment allowances payable to him or her pursuant to paragraph (1) of subsection (a) of Section 233 of the federal Trade Act of 1974, as amended, as a result of the certification referenced in item (a) of this paragraph 2; and (c) whose total or partial unemployment is attributable to a layoff from an electric power plant or coal mine a steel manufacturer.

B. An individual shall be eligible to receive additional benefits pursuant to this Section for a week if he or she: (1) has met the requirements of Section 500E of this Act; (2) is an exhaustee; and (3) except when the result would be inconsistent with the provisions of this Section, has satisfied the requirements of this Act for the receipt of regular benefits as that term is defined in Section 409 of this Act.

C. For the purposes of this Section, an individual is an exhaustee with respect to a week if:

1. prior to such week: (a) he or she has received, with respect to his or her current benefit year that includes such week, the maximum total amount of benefits to which he or she was entitled under the provisions of Section 403B, and all of the regular benefits (including dependents' allowances) to which he or she had entitlement (if any) on the basis of wages or employment under any other State unemployment compensation law; or (b) he or she has received all the regular benefits available to him or her with respect to his or her current benefit year that includes such week, under this Act and under any other State unemployment compensation law, after a cancellation of some or all of his or her wage credits or the partial or total reduction of his or her regular benefit rights; or (c) his or her benefit year terminated, and he or she cannot meet the qualifying wage requirements of Section 500E of this Act or the qualifying wage or employment requirements of any other State unemployment compensation law to establish a new benefit year which would include such week or, having established a new benefit year that includes such week, he or she is ineligible for regular benefits by reason of Section 607 of this Act or a like provision of any other State unemployment compensation law; and

2. for such week: (a) he or she has no right to benefits or allowances, as the case may be, under the Railroad Unemployment Insurance Act, the federal Trade Act of 1974, as amended, or such other federal laws as are specified in regulations of the United States Secretary of Labor or other appropriate federal agency; and (b) he or she has not received and is not seeking benefits under the unemployment compensation law of Canada, except that if he or she is seeking such benefits and the appropriate agency finally determines that he or she is not entitled to benefits under such law, this clause shall not apply; and

3. the week for which additional benefits are being claimed is not later than 78 seventy-eight weeks after the end of the individual's benefit year for which benefits can be claimed under this Section.

For the purposes of clauses (a) and (b) of paragraph 1 of this subsection, an individual shall be deemed to have received, with respect to his or her current benefit year, the maximum total amount of benefits to which he or she was entitled or all of the regular benefits to which he or she had entitlement, or all of the regular benefits available to him or her, as the case may be, even though: (a) as a result of a pending reconsideration or appeal with respect to the "finding" defined in Section 701, or of a pending appeal with respect to wages or employment or both under any other State unemployment compensation law, he or she may subsequently be determined to be entitled to more regular benefits; or (b) by reason of a seasonality provision in a State unemployment compensation law which establishes the weeks of the year for which regular benefits may be paid to individuals on the basis of wages in seasonal employment he or she may be entitled to regular benefits for future weeks but such benefits are not payable with respect to the week for which he or she is claiming additional benefits, provided that he or she is otherwise an exhaustee under the provisions of this subsection with respect to his or her rights to regular benefits, under such seasonality provision, during the portion of the year in which that week occurs; or (c) having established a benefit year, no regular benefits are payable to him or her with respect to such year because his or her wage credits were cancelled or his or her rights to regular benefits were totally reduced by reason of the application of a disqualification provision of a State unemployment compensation law.

An individual shall not cease to be an exhaustee with respect to any week solely because he or she meets the qualifying wage requirements of Section 500E for a part of such week.

D. The provisions of Section 607 and the waiting period requirements of Section 500D shall not be applicable to any week with respect to which benefits are otherwise payable under this Section.

E. With respect to any week payable under this Section, an exhaustee's "weekly additional benefit amount" shall be the same as his or her weekly benefit amount during his or her benefit year which includes such week or, if such week is not in a benefit year, during his or her applicable benefit year, as defined in regulations issued by the United States Secretary of Labor or other appropriate federal agency. If the exhaustee had more than one weekly benefit amount during his or her benefit year, his or her weekly additional benefit amount with respect to such week shall be the latest of such weekly benefit amounts.

F. An eligible exhaustee shall be entitled to a maximum total amount of additional benefits equal to the maximum total amount of benefits to which he or she was entitled under Section 403B, plus dependents' allowances, during his or her applicable benefit year, minus the sum of any trade readjustment allowances he or she has received as a result of the certification referenced in item (a) of paragraph 2 of subsection A.

G. 1. A claims adjudicator shall examine the first claim filed by an individual who meets the requirements of subsection A and, on the basis of the information in his or her possession, shall make an "additional benefits finding". Such finding shall state whether or not the individual has met the requirement of subsection E of Section 500 of this Act, is an exhaustee and, if so, his or her weekly additional benefit amount and the maximum total amount of additional benefits to which he or she is entitled. The claims adjudicator shall promptly notify the individual of his or her "additional benefits finding", and shall promptly notify the individual's most recent employing unit and the individual's last employer (referred to in Section 1502.1) that the individual has filed a claim for additional benefits. The claims adjudicator may reconsider his or her "additional benefits finding" at any time within 2 years after the close of the individual's applicable benefit year, and shall promptly notify the individual of such reconsidered finding. All of the provisions of this Act applicable to reviews from findings or reconsidered findings made pursuant to Sections 701 and 703 which are not inconsistent with the provisions of this subsection shall be applicable to reviews from additional benefits findings and reconsidered additional benefits findings.

2. If, pursuant to the reconsideration or appeal with respect to a "finding", referred to in subsection C, an exhaustee is found to be entitled to more regular benefits and, by reason thereof, is entitled to more additional benefits, the claims adjudicator shall make a reconsidered additional benefits finding and shall promptly notify the exhaustee thereof.

H. Benefits payable pursuant to this Section shall be paid from the unemployment trust fund.

I. No employer shall be chargeable for the additional benefits paid under this Section.

J. To ensure full compliance and coordination with all applicable federal laws, including, but not limited to, the federal Trade Act of 1974, as amended, the Federal Unemployment Tax Act, and the Social Security Act, the Director shall take any action or issue any regulations necessary in the administration of this Section to ensure that its provisions are so interpreted and applied as to meet the requirements of such federal Act as interpreted by the United States Secretary of Labor or other appropriate Federal agency.

(Source: P.A. 99-912, eff. 12-19-16.)".