102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2365
 
Introduced 2/26/2021, by Sen. John Connor
 
SYNOPSIS AS INTRODUCED:
 

 



35 ILCS 200/10-5

     Amends the Property Tax Code. Provides that photovoltaic electricity generation systems subject to power purchase agreements or leases for solar energy between a third-party owner, an operator, or both, and an end user of electricity are considered solar energy systems. Effective immediately.
  


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
SB2365LRB102 13193 HLH 18537 b


  
1    AN ACT concerning revenue.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Property Tax Code is amended  by changing 
5Section 10-5 as follows:
 



6    (35 ILCS 200/10-5)



7    Sec. 10-5. Solar energy systems; definitions. It is the 
8policy of this
State that the use of solar energy systems 
9should be encouraged because they
conserve nonrenewable 
10resources, reduce pollution and promote the health and

11well-being of the people of this State, and should be valued in 
12relation to
these benefits.

13    (a) "Solar energy" means radiant energy received from
the 
14sun at wave lengths suitable for heat transfer, photosynthetic 
15use,
or photovoltaic use.

16    (b) "Solar collector" means

17        (1) An assembly, structure, or design, including 
18    passive elements,
used for gathering, concentrating, or 
19    absorbing direct and indirect
solar energy, specially 
20    designed for holding a substantial amount of
useful 
21    thermal energy and to transfer that energy to a gas, 
22    solid, or
liquid or to use that energy directly; or

23        (2) A mechanism that absorbs solar energy and converts 
 
 
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1    it into
electricity; or

2        (3) A mechanism or process used for gathering solar 
3    energy through
wind or thermal gradients; or

4        (4) A component used to transfer thermal energy to a 
5    gas, solid, or
liquid, or to convert it into electricity.

6    (c) "Solar storage mechanism" means equipment or elements 
7(such as
piping and transfer mechanisms, containers, heat 
8exchangers, or controls
thereof, and gases, solids, liquids, 
9or combinations thereof) that are
utilized for storing solar 
10energy, gathered by a solar collector, for
subsequent use.

11    (d) "Solar energy system" means

12        (1)(A) A complete assembly, structure, or design of 
13    solar
collector, or a solar storage mechanism, which uses 
14    solar energy for
generating electricity that is primarily

15    consumed on the property on which the solar energy system

16    resides, or for heating or cooling gases, solids, liquids,

17    or other materials for the primary benefit of the property

18    on which the solar energy system resides;

19        (B) The design, materials, or elements of a system and 
20    its
maintenance, operation, and labor components, and the 
21    necessary
components, if any, of supplemental conventional 
22    energy systems designed
or constructed to interface with a 
23    solar energy system; and

24        (C) Any legal, financial, or institutional orders, 
25    certificates, or
mechanisms, including easements, leases, 
26    and agreements, required to
ensure continued access to 
 
 
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1    solar energy, its source, or its use in a
solar energy 
2    system, and including monitoring and educational elements

3    of a demonstration project; or .

4        (D)  Photovoltaic electricity generation systems 
5    subject to power purchase agreements or leases for solar 
6    energy between a third-party owner, an operator, or both, 
7    and an end user of electricity, where such systems are 
8    located on the end user of electricity's side of the 
9    electric meter and which primarily are used to offset the 
10    electricity load of the end user behind whose electric 
11    meter the system is connected.  A system primarily is used 
12    to offset the electricity load of the end user of 
13    electricity if the system is estimated to produce 110% or 
14    fewer kilowatt-hours of electricity than consumed by the 
15    end user of electricity at such meter in the last 12 full 
16    months prior to the system being placed in service. 
17        (2) "Solar energy system" does not include:

18            (A) Distribution equipment that is equally usable 
19        in a conventional
energy system except for those 
20        components of the equipment that are
necessary for 
21        meeting the requirements of efficient solar energy 
22        utilization;


23            (B) Components of a solar energy system that serve 
24        structural,
insulating, protective, shading, 
25        aesthetic, or other non-solar energy
utilization 
26        purposes, as defined in the regulations of the 
 
 
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1        Department
of Commerce and Economic Opportunity; or 
2        and

3            (C) A commercial solar energy system, as defined

4        by this Code, in counties with fewer than 3,000,000

5        inhabitants. 
6        (3) The solar energy system shall conform to the 
7    standards for those
systems established by regulation of 
8    the Department of Commerce
and Economic Opportunity.

9(Source: P.A. 100-781, eff. 8-10-18.)

 
 
10    Section 99. Effective date. This Act takes effect upon 
11becoming law.