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1 | AN ACT concerning economic development.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Article 1. | ||||||||||||||||||||||||
5 | Section 1-1. Short title. This Act may be cited as the | ||||||||||||||||||||||||
6 | Illinois Energy to Jobs Act. | ||||||||||||||||||||||||
7 | Article 5. | ||||||||||||||||||||||||
8 | Section 5-1. Short title. This Article may be cited as the | ||||||||||||||||||||||||
9 | Carbon Capture and Sequestration Legislation Commission Law. | ||||||||||||||||||||||||
10 | Section 5-5. Definitions. For purposes of this Article: | ||||||||||||||||||||||||
11 | "CO 2 " means carbon dioxide. | ||||||||||||||||||||||||
12 | "Commission" means the Carbon Capture and Sequestration | ||||||||||||||||||||||||
13 | Legislation Commission. | ||||||||||||||||||||||||
14 | "Director" means the Director of the Illinois Power Agency. | ||||||||||||||||||||||||
15 | Section 5-10. Creation. An advisory commission, to be known | ||||||||||||||||||||||||
16 | as the Carbon Capture and Sequestration Legislation | ||||||||||||||||||||||||
17 | Commission, is created. The Commission shall consist of 16 | ||||||||||||||||||||||||
18 | members, including the Director, who shall serve as the | ||||||||||||||||||||||||
19 | ex-officio chairperson of the Commission. The remaining 15 |
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1 | members of the Commission shall be appointed as follows: 3 | ||||||
2 | members shall be appointed by the Speaker of the House of | ||||||
3 | Representatives, 3 members shall be appointed by the President | ||||||
4 | of the Senate, 2 members shall be appointed by the Minority | ||||||
5 | Leader of the House of Representatives, 2 members shall be | ||||||
6 | appointed by the Minority Leader of the Senate, and 5 members | ||||||
7 | shall be appointed by the Governor. The appointments made by | ||||||
8 | the Governor shall include one member with expertise in | ||||||
9 | geology, one member with expertise in civil law, one member | ||||||
10 | with expertise in pipeline technology, one member with | ||||||
11 | expertise in energy-related engineering, and one member with | ||||||
12 | expertise in environmental science. | ||||||
13 | Section 5-15. Report on carbon capture and sequestration | ||||||
14 | legislation. | ||||||
15 | (a) The Commission shall file a report no later than | ||||||
16 | December 31, 2010 with the General Assembly on all issues | ||||||
17 | related to carbon capture and sequestration legislation, | ||||||
18 | including, but not limited to, the following: | ||||||
19 | (1) Ownership of the CO 2 . | ||||||
20 | (2) Liability for release of CO 2 . | ||||||
21 | (3) Acquisition and ownership of pore space. | ||||||
22 | (4) Procedures and safeguards for the transportation | ||||||
23 | and sequestration of CO 2 . | ||||||
24 | (5) Methodology to establish any necessary fees, | ||||||
25 | costs, or offsets. |
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1 | (6) Potential use of CO 2 . | ||||||
2 | (7) Construction of pipelines. | ||||||
3 | (8) Coordination with applicable federal law or | ||||||
4 | regulatory commissions. | ||||||
5 | (b) The Commission shall be abolished upon filing its | ||||||
6 | report with the General Assembly. | ||||||
7 | Section 5-20. Repealer. This Article is repealed on January | ||||||
8 | 1, 2011. | ||||||
9 | Article 10. | ||||||
10 | Section 10-5. The Illinois Power Agency Act is amended by | ||||||
11 | changing Sections 1-10, 1-21, and 1-80 as follows: | ||||||
12 | (20 ILCS 3855/1-10) | ||||||
13 | (Text of Section before amendment by P.A. 95-1027 )
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14 | Sec. 1-10. Definitions. | ||||||
15 | "Agency" means the Illinois Power Agency. | ||||||
16 | "Agency loan agreement" means any agreement pursuant to | ||||||
17 | which the Illinois Finance Authority agrees to loan the | ||||||
18 | proceeds of revenue bonds issued with respect to a project to | ||||||
19 | the Agency upon terms providing for loan repayment installments | ||||||
20 | at least sufficient to pay when due all principal of, interest | ||||||
21 | and premium, if any, on those revenue bonds, and providing for | ||||||
22 | maintenance, insurance, and other matters in respect of the |
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1 | project. | ||||||
2 | "Authority" means the Illinois Finance Authority. | ||||||
3 | "Clean coal facility" means an electric generating | ||||||
4 | facility that uses primarily coal as a feedstock and that | ||||||
5 | captures and sequesters carbon emissions at the following | ||||||
6 | levels: at least 50% of the total carbon emissions that the | ||||||
7 | facility would otherwise emit if, at the time construction | ||||||
8 | commences, the facility is scheduled to commence operation | ||||||
9 | before 2016, at least 70% of the total carbon emissions that | ||||||
10 | the facility would otherwise emit if, at the time construction | ||||||
11 | commences, the facility is scheduled to commence operation | ||||||
12 | during 2016 or 2017, and at least 90% of the total carbon | ||||||
13 | emissions that the facility would otherwise emit if, at the | ||||||
14 | time construction commences, the facility is scheduled to | ||||||
15 | commence operation after 2017. The power block of the clean | ||||||
16 | coal facility shall not exceed allowable emission rates for | ||||||
17 | sulfur dioxide, nitrogen oxides, carbon monoxide, particulates | ||||||
18 | and mercury for a natural gas-fired combined-cycle facility the | ||||||
19 | same size as and in the same location as the clean coal | ||||||
20 | facility at the time the clean coal facility obtains an | ||||||
21 | approved air permit. All coal used by a clean coal facility | ||||||
22 | shall have high volatile bituminous rank and greater than 1.7 | ||||||
23 | pounds of sulfur per million btu content, unless the clean coal | ||||||
24 | facility does not use gasification technology and was operating | ||||||
25 | as a conventional coal-fired electric generating facility on | ||||||
26 | June 1, 2009 (the effective date of Public Act 95-1027). |
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1 | "Clean coal SNG facility" means a facility that uses a | ||||||
2 | gasification process to produce substitute natural gas, that | ||||||
3 | sequesters at least 90% of the total carbon emissions that the | ||||||
4 | facility would otherwise emit and that uses coal as a | ||||||
5 | feedstock, with all such coal having a high bituminous rank and | ||||||
6 | greater than 1.7 pounds of sulfur per million btu content. | ||||||
7 | "Coal to liquid facility" means a facility that produces | ||||||
8 | fuels by processes that convert coal, waste coal, or biomass | ||||||
9 | resources or extract oil from oil shale to produce fuels for | ||||||
10 | powering vehicles, aircraft, and machinery and that sequesters | ||||||
11 | carbon emissions consistent with federal and State standards. | ||||||
12 | These fuels may include, but are not limited to, petroleum, jet | ||||||
13 | fuel, gasoline, diesel fuel, hydrogen derived from coal, and | ||||||
14 | diesel fuel and ethanol derived from biomass resources. | ||||||
15 | "Biomass resources" means any organic matter that is available | ||||||
16 | on a renewable or recurring basis, including (1) agricultural | ||||||
17 | crops and trees, (2) wood and wood residues, (3) plants, | ||||||
18 | aquatic plants, and plant oils, (4) grasses, (5) animal fats | ||||||
19 | and animal by-products, (6) animal manure, (7) residue | ||||||
20 | materials, and (8) waste products. | ||||||
21 | "Commission" means the Illinois Commerce Commission. | ||||||
22 | "Costs incurred in connection with the development and | ||||||
23 | construction of a facility" means: | ||||||
24 | (1) the cost of acquisition of all real property and | ||||||
25 | improvements in connection therewith and equipment and | ||||||
26 | other property, rights, and easements acquired that are |
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1 | deemed necessary for the operation and maintenance of the | ||||||
2 | facility; | ||||||
3 | (2) financing costs with respect to bonds, notes, and | ||||||
4 | other evidences of indebtedness of the Agency; | ||||||
5 | (3) all origination, commitment, utilization, | ||||||
6 | facility, placement, underwriting, syndication, credit | ||||||
7 | enhancement, and rating agency fees; | ||||||
8 | (4) engineering, design, procurement, consulting, | ||||||
9 | legal, accounting, title insurance, survey, appraisal, | ||||||
10 | escrow, trustee, collateral agency, interest rate hedging, | ||||||
11 | interest rate swap, capitalized interest and other | ||||||
12 | financing costs, and other expenses for professional | ||||||
13 | services; and | ||||||
14 | (5) the costs of plans, specifications, site study and | ||||||
15 | investigation, installation, surveys, other Agency costs | ||||||
16 | and estimates of costs, and other expenses necessary or | ||||||
17 | incidental to determining the feasibility of any project, | ||||||
18 | together with such other expenses as may be necessary or | ||||||
19 | incidental to the financing, insuring, acquisition, and | ||||||
20 | construction of a specific project and placing that project | ||||||
21 | in operation. | ||||||
22 | "Department" means the Department of Commerce and Economic | ||||||
23 | Opportunity. | ||||||
24 | "Director" means the Director of the Illinois Power Agency. | ||||||
25 | "Demand-response" means measures that decrease peak | ||||||
26 | electricity demand or shift demand from peak to off-peak |
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1 | periods. | ||||||
2 | "Energy efficiency" means measures that reduce the amount | ||||||
3 | of electricity required to achieve a given end use. | ||||||
4 | "Energy facility" includes a clean coal power facility, a | ||||||
5 | clean coal SNG facility, a nuclear facility, a facility that | ||||||
6 | produces renewable energy, including, but not limited to, wind, | ||||||
7 | solar, and biomass, lines for the transmission of electric | ||||||
8 | power, smart-grid equipment and facilities, a fossil | ||||||
9 | fuel-fired electric generation facility existing on the | ||||||
10 | effective date of this amendatory Act of the 96th General | ||||||
11 | Assembly that is regulated and in compliance with Subparts C, | ||||||
12 | D, and E of Title 35 of the Illinois Administrative Code, a | ||||||
13 | coal to liquid facility, a refinery to produce fuel or energy, | ||||||
14 | and a coal mine or a facility for the exploration or production | ||||||
15 | of oil or gas, and all linear facilities, including railroads, | ||||||
16 | road pipelines, or transmission lines necessary to the | ||||||
17 | operation of that facility. | ||||||
18 | "Electric utility" has the same definition as found in | ||||||
19 | Section 16-102 of the Public Utilities Act. | ||||||
20 | "Facility" means an electric generating unit or a | ||||||
21 | co-generating unit that produces electricity along with | ||||||
22 | related equipment necessary to connect the facility to an | ||||||
23 | electric transmission or distribution system. | ||||||
24 | "Feedstock" means any raw material supplied to an energy | ||||||
25 | facility from which other end products can be made. | ||||||
26 | "Governmental aggregator" means one or more units of local |
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1 | government that individually or collectively procure | ||||||
2 | electricity to serve residential retail electrical loads | ||||||
3 | located within its or their jurisdiction. | ||||||
4 | "Local government" means a unit of local government as | ||||||
5 | defined in Article VII of Section 1 of the Illinois | ||||||
6 | Constitution. | ||||||
7 | "Municipality" means a city, village, or incorporated | ||||||
8 | town. | ||||||
9 | "Person" means any natural person, firm, partnership, | ||||||
10 | corporation, either domestic or foreign, company, association, | ||||||
11 | limited liability company, joint stock company, or association | ||||||
12 | and includes any trustee, receiver, assignee, or personal | ||||||
13 | representative thereof. | ||||||
14 | "Project" means the planning, bidding, and construction of | ||||||
15 | a facility. | ||||||
16 | "Public utility" has the same definition as found in | ||||||
17 | Section 3-105 of the Public Utilities Act. | ||||||
18 | "Real property" means any interest in land together with | ||||||
19 | all structures, fixtures, and improvements thereon, including | ||||||
20 | lands under water and riparian rights, any easements, | ||||||
21 | covenants, licenses, leases, rights-of-way, uses, and other | ||||||
22 | interests, together with any liens, judgments, mortgages, or | ||||||
23 | other claims or security interests related to real property. | ||||||
24 | "Renewable energy credit" means a tradable credit that | ||||||
25 | represents the environmental attributes of a certain amount of | ||||||
26 | energy produced from a renewable energy resource. |
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1 | "Renewable energy resources" includes energy and its | ||||||
2 | associated renewable energy credit or renewable energy credits | ||||||
3 | from wind, solar thermal energy, photovoltaic cells and panels, | ||||||
4 | biodiesel, crops and untreated and unadulterated organic waste | ||||||
5 | biomass, trees and tree trimmings, hydropower that does not | ||||||
6 | involve new construction or significant expansion of | ||||||
7 | hydropower dams, and other alternative sources of | ||||||
8 | environmentally preferable energy. For purposes of this Act, | ||||||
9 | landfill gas produced in the State is considered a renewable | ||||||
10 | energy resource. "Renewable energy resources" does not include | ||||||
11 | the incineration or burning of tires, garbage, general | ||||||
12 | household, institutional, and commercial waste, industrial | ||||||
13 | lunchroom or office waste, landscape waste other than trees and | ||||||
14 | tree trimmings, railroad crossties, utility poles, or | ||||||
15 | construction or demolition debris, other than untreated and | ||||||
16 | unadulterated waste wood. | ||||||
17 | "Revenue bond" means any bond, note, or other evidence of | ||||||
18 | indebtedness issued by the Authority, the principal and | ||||||
19 | interest of which is payable solely from revenues or income | ||||||
20 | derived from any project or activity of the Agency. | ||||||
21 | "Sequester" means permanent storage of carbon dioxide by | ||||||
22 | injecting it into a saline aquifer, a depleted gas reservoir, | ||||||
23 | or an oil reservoir, directly or through an enhanced oil | ||||||
24 | recovery process that may involve intermediate storage in a | ||||||
25 | salt dome. | ||||||
26 | "Servicing agreement" means (i) in the case of an electric |
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1 | utility, an agreement between the owner of a clean coal | ||||||
2 | facility and such electric utility, which agreement shall have | ||||||
3 | terms and conditions meeting the requirements of paragraph (3) | ||||||
4 | of subsection (d) of Section 1-75, and (ii) in the case of an | ||||||
5 | alternative retail electric supplier, an agreement between the | ||||||
6 | owner of a clean coal facility and such alternative retail | ||||||
7 | electric supplier, which agreement shall have terms and | ||||||
8 | conditions meeting the requirements of Section 16-115(d)(5) of | ||||||
9 | the Public Utilities Act. | ||||||
10 | "Substitute natural gas" or "SNG" means a gas manufactured | ||||||
11 | by gasification of hydrocarbon feedstock, which is | ||||||
12 | substantially interchangeable in use and distribution with | ||||||
13 | conventional natural gas. | ||||||
14 | "Total resource cost test" or "TRC test" means a standard | ||||||
15 | that is met if, for an investment in energy efficiency or | ||||||
16 | demand-response measures, the benefit-cost ratio is greater | ||||||
17 | than one. The benefit-cost ratio is the ratio of the net | ||||||
18 | present value of the total benefits of the program to the net | ||||||
19 | present value of the total costs as calculated over the | ||||||
20 | lifetime of the measures. A total resource cost test compares | ||||||
21 | the sum of avoided electric utility costs, representing the | ||||||
22 | benefits that accrue to the system and the participant in the | ||||||
23 | delivery of those efficiency measures, to the sum of all | ||||||
24 | incremental costs of end-use measures that are implemented due | ||||||
25 | to the program (including both utility and participant | ||||||
26 | contributions), plus costs to administer, deliver, and |
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1 | evaluate each demand-side program, to quantify the net savings | ||||||
2 | obtained by substituting the demand-side program for supply | ||||||
3 | resources. In calculating avoided costs of power and energy | ||||||
4 | that an electric utility would otherwise have had to acquire, | ||||||
5 | reasonable estimates shall be included of financial costs | ||||||
6 | likely to be imposed by future regulations and legislation on | ||||||
7 | emissions of greenhouse gases.
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8 | (Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09.) | ||||||
9 | (Text of Section after amendment by P.A. 95-1027 ) | ||||||
10 | Sec. 1-10. Definitions. | ||||||
11 | "Agency" means the Illinois Power Agency. | ||||||
12 | "Agency loan agreement" means any agreement pursuant to | ||||||
13 | which the Illinois Finance Authority agrees to loan the | ||||||
14 | proceeds of revenue bonds issued with respect to a project to | ||||||
15 | the Agency upon terms providing for loan repayment installments | ||||||
16 | at least sufficient to pay when due all principal of, interest | ||||||
17 | and premium, if any, on those revenue bonds, and providing for | ||||||
18 | maintenance, insurance, and other matters in respect of the | ||||||
19 | project. | ||||||
20 | "Authority" means the Illinois Finance Authority. | ||||||
21 | "Clean coal facility" means an electric generating | ||||||
22 | facility that uses primarily coal as a feedstock and that | ||||||
23 | captures and sequesters carbon emissions at the following | ||||||
24 | levels: at least 50% of the total carbon emissions that the | ||||||
25 | facility would otherwise emit if, at the time construction |
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1 | commences, the facility is scheduled to commence operation | ||||||
2 | before 2016, at least 70% of the total carbon emissions that | ||||||
3 | the facility would otherwise emit if, at the time construction | ||||||
4 | commences, the facility is scheduled to commence operation | ||||||
5 | during 2016 or 2017, and at least 90% of the total carbon | ||||||
6 | emissions that the facility would otherwise emit if, at the | ||||||
7 | time construction commences, the facility is scheduled to | ||||||
8 | commence operation after 2017. The power block of the clean | ||||||
9 | coal facility shall not exceed allowable emission rates for | ||||||
10 | sulfur dioxide, nitrogen oxides, carbon monoxide, particulates | ||||||
11 | and mercury for a natural gas-fired combined-cycle facility the | ||||||
12 | same size as and in the same location as the clean coal | ||||||
13 | facility at the time the clean coal facility obtains an | ||||||
14 | approved air permit. All coal used by a clean coal facility | ||||||
15 | shall have high volatile bituminous rank and greater than 1.7 | ||||||
16 | pounds of sulfur per million btu content, unless the clean coal | ||||||
17 | facility does not use gasification technology and was operating | ||||||
18 | as a conventional coal-fired electric generating facility on | ||||||
19 | June 1, 2009 ( the effective date of Public Act 95-1027)
this | ||||||
20 | amendatory Act of the 95th General Assembly . | ||||||
21 | "Clean coal SNG facility" means a facility that uses a | ||||||
22 | gasification process to produce substitute natural gas, that | ||||||
23 | sequesters at least 90% of the total carbon emissions that the | ||||||
24 | facility would otherwise emit and that uses coal as a | ||||||
25 | feedstock, with all such coal having a high bituminous rank and | ||||||
26 | greater than 1.7 pounds of sulfur per million btu content. |
| |||||||
| |||||||
1 | "Coal to liquid facility" means a facility that produces | ||||||
2 | fuels by processes that convert coal, waste coal, or biomass | ||||||
3 | resources or extract oil from oil shale to produce fuels for | ||||||
4 | powering vehicles, aircraft, and machinery and that sequesters | ||||||
5 | carbon emissions consistent with federal and State standards. | ||||||
6 | These fuels may include, but are not limited to, petroleum, jet | ||||||
7 | fuel, gasoline, diesel fuel, hydrogen derived from coal, and | ||||||
8 | diesel fuel and ethanol derived from biomass resources. | ||||||
9 | "Biomass resources" means any organic matter that is available | ||||||
10 | on a renewable or recurring basis, including (1) agricultural | ||||||
11 | crops and trees, (2) wood and wood residues, (3) plants, | ||||||
12 | aquatic plants, and plant oils, (4) grasses, (5) animal fats | ||||||
13 | and animal by-products, (6) animal manure, (7) residue | ||||||
14 | materials, and (8) waste products. | ||||||
15 | "Commission" means the Illinois Commerce Commission. | ||||||
16 | "Costs incurred in connection with the development and | ||||||
17 | construction of a facility" means: | ||||||
18 | (1) the cost of acquisition of all real property and | ||||||
19 | improvements in connection therewith and equipment and | ||||||
20 | other property, rights, and easements acquired that are | ||||||
21 | deemed necessary for the operation and maintenance of the | ||||||
22 | facility; | ||||||
23 | (2) financing costs with respect to bonds, notes, and | ||||||
24 | other evidences of indebtedness of the Agency; | ||||||
25 | (3) all origination, commitment, utilization, | ||||||
26 | facility, placement, underwriting, syndication, credit |
| |||||||
| |||||||
1 | enhancement, and rating agency fees; | ||||||
2 | (4) engineering, design, procurement, consulting, | ||||||
3 | legal, accounting, title insurance, survey, appraisal, | ||||||
4 | escrow, trustee, collateral agency, interest rate hedging, | ||||||
5 | interest rate swap, capitalized interest and other | ||||||
6 | financing costs, and other expenses for professional | ||||||
7 | services; and | ||||||
8 | (5) the costs of plans, specifications, site study and | ||||||
9 | investigation, installation, surveys, other Agency costs | ||||||
10 | and estimates of costs, and other expenses necessary or | ||||||
11 | incidental to determining the feasibility of any project, | ||||||
12 | together with such other expenses as may be necessary or | ||||||
13 | incidental to the financing, insuring, acquisition, and | ||||||
14 | construction of a specific project and placing that project | ||||||
15 | in operation. | ||||||
16 | "Department" means the Department of Commerce and Economic | ||||||
17 | Opportunity. | ||||||
18 | "Director" means the Director of the Illinois Power Agency. | ||||||
19 | "Demand-response" means measures that decrease peak | ||||||
20 | electricity demand or shift demand from peak to off-peak | ||||||
21 | periods. | ||||||
22 | "Energy efficiency" means measures that reduce the amount | ||||||
23 | of electricity required to achieve a given end use. | ||||||
24 | "Energy facility" includes a clean coal power facility, a | ||||||
25 | clean coal SNG facility, a nuclear facility, a facility that | ||||||
26 | produces renewable energy, including, but not limited to, wind, |
| |||||||
| |||||||
1 | solar, and biomass, lines for the transmission of electric | ||||||
2 | power, smart-grid equipment and facilities, a fossil | ||||||
3 | fuel-fired electric generation facility existing on the | ||||||
4 | effective date of this amendatory Act of the 96th General | ||||||
5 | Assembly that is regulated and in compliance with Subparts C, | ||||||
6 | D, and E of Title 35 of the Illinois Administrative Code, a | ||||||
7 | coal to liquid facility, a refinery to produce fuel or energy, | ||||||
8 | and a coal mine or a facility for the exploration or production | ||||||
9 | of oil or gas, and all linear facilities, including railroads, | ||||||
10 | road pipelines, or transmission lines necessary to the | ||||||
11 | operation of that facility. | ||||||
12 | "Electric utility" has the same definition as found in | ||||||
13 | Section 16-102 of the Public Utilities Act. | ||||||
14 | "Facility" means an electric generating unit or a | ||||||
15 | co-generating unit that produces electricity along with | ||||||
16 | related equipment necessary to connect the facility to an | ||||||
17 | electric transmission or distribution system. | ||||||
18 | "Feedstock" means any raw material supplied to an energy | ||||||
19 | facility from which other end products can be made. | ||||||
20 | "Governmental aggregator" means one or more units of local | ||||||
21 | government that individually or collectively procure | ||||||
22 | electricity to serve residential retail electrical loads | ||||||
23 | located within its or their jurisdiction. | ||||||
24 | "Local government" means a unit of local government as | ||||||
25 | defined in Article VII of Section 1 of the Illinois | ||||||
26 | Constitution. |
| |||||||
| |||||||
1 | "Municipality" means a city, village, or incorporated | ||||||
2 | town. | ||||||
3 | "Person" means any natural person, firm, partnership, | ||||||
4 | corporation, either domestic or foreign, company, association, | ||||||
5 | limited liability company, joint stock company, or association | ||||||
6 | and includes any trustee, receiver, assignee, or personal | ||||||
7 | representative thereof. | ||||||
8 | "Project" means the planning, bidding, and construction of | ||||||
9 | a facility. | ||||||
10 | "Public utility" has the same definition as found in | ||||||
11 | Section 3-105 of the Public Utilities Act. | ||||||
12 | "Real property" means any interest in land together with | ||||||
13 | all structures, fixtures, and improvements thereon, including | ||||||
14 | lands under water and riparian rights, any easements, | ||||||
15 | covenants, licenses, leases, rights-of-way, uses, and other | ||||||
16 | interests, together with any liens, judgments, mortgages, or | ||||||
17 | other claims or security interests related to real property. | ||||||
18 | "Renewable energy credit" means a tradable credit that | ||||||
19 | represents the environmental attributes of a certain amount of | ||||||
20 | energy produced from a renewable energy resource. | ||||||
21 | "Renewable energy resources" includes energy and its | ||||||
22 | associated renewable energy credit or renewable energy credits | ||||||
23 | from wind, solar thermal energy, photovoltaic cells and panels, | ||||||
24 | biodiesel, crops and untreated and unadulterated organic waste | ||||||
25 | biomass, trees and tree trimmings, hydropower that does not | ||||||
26 | involve new construction or significant expansion of |
| |||||||
| |||||||
1 | hydropower dams, and other alternative sources of | ||||||
2 | environmentally preferable energy. For purposes of this Act, | ||||||
3 | landfill gas produced in the State is considered a renewable | ||||||
4 | energy resource. "Renewable energy resources" does not include | ||||||
5 | the incineration or burning of tires, garbage, general | ||||||
6 | household, institutional, and commercial waste, industrial | ||||||
7 | lunchroom or office waste, landscape waste other than trees and | ||||||
8 | tree trimmings, railroad crossties, utility poles, or | ||||||
9 | construction or demolition debris, other than untreated and | ||||||
10 | unadulterated waste wood. | ||||||
11 | "Revenue bond" means any bond, note, or other evidence of | ||||||
12 | indebtedness issued by the Authority, the principal and | ||||||
13 | interest of which is payable solely from revenues or income | ||||||
14 | derived from any project or activity of the Agency. | ||||||
15 | "Sequester" means permanent storage of carbon dioxide by | ||||||
16 | injecting it into a saline aquifer, a depleted gas reservoir, | ||||||
17 | or an oil reservoir, directly or through an enhanced oil | ||||||
18 | recovery process that may involve intermediate storage in a | ||||||
19 | salt dome. | ||||||
20 | "Servicing agreement" means (i) in the case of an electric | ||||||
21 | utility, an agreement between the owner of a clean coal | ||||||
22 | facility and such electric utility, which agreement shall have | ||||||
23 | terms and conditions meeting the requirements of paragraph (3) | ||||||
24 | of subsection (d) of Section 1-75, and (ii) in the case of an | ||||||
25 | alternative retail electric supplier, an agreement between the | ||||||
26 | owner of a clean coal facility and such alternative retail |
| |||||||
| |||||||
1 | electric supplier, which agreement shall have terms and | ||||||
2 | conditions meeting the requirements of Section 16-115(d)(5) of | ||||||
3 | the Public Utilities Act. | ||||||
4 | "Substitute natural gas" or "SNG" means a gas manufactured | ||||||
5 | by gasification of hydrocarbon feedstock, which is | ||||||
6 | substantially interchangeable in use and distribution with | ||||||
7 | conventional natural gas. | ||||||
8 | "Total resource cost test" or "TRC test" means a standard | ||||||
9 | that is met if, for an investment in energy efficiency or | ||||||
10 | demand-response measures, the benefit-cost ratio is greater | ||||||
11 | than one. The benefit-cost ratio is the ratio of the net | ||||||
12 | present value of the total benefits of the program to the net | ||||||
13 | present value of the total costs as calculated over the | ||||||
14 | lifetime of the measures. A total resource cost test compares | ||||||
15 | the sum of avoided electric utility costs, representing the | ||||||
16 | benefits that accrue to the system and the participant in the | ||||||
17 | delivery of those efficiency measures, to the sum of all | ||||||
18 | incremental costs of end-use measures that are implemented due | ||||||
19 | to the program (including both utility and participant | ||||||
20 | contributions), plus costs to administer, deliver, and | ||||||
21 | evaluate each demand-side program, to quantify the net savings | ||||||
22 | obtained by substituting the demand-side program for supply | ||||||
23 | resources. In calculating avoided costs of power and energy | ||||||
24 | that an electric utility would otherwise have had to acquire, | ||||||
25 | reasonable estimates shall be included of financial costs | ||||||
26 | likely to be imposed by future regulations and legislation on |
| |||||||
| |||||||
1 | emissions of greenhouse gases.
| ||||||
2 | (Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09; | ||||||
3 | 95-1027, eff. 6-1-09; revised 1-14-09.) | ||||||
4 | (20 ILCS 3855/1-21)
| ||||||
5 | Sec. 1-21. Eminent domain. The Agency may take and acquire | ||||||
6 | possession by eminent domain of any property or interest in | ||||||
7 | property that the Agency is authorized to acquire under this | ||||||
8 | Act for the construction, maintenance, or operation of a | ||||||
9 | facility with the consent in writing of the Governor, after | ||||||
10 | following the provisions of Section 1-85(a) of this Act, to | ||||||
11 | acquire by private purchase, or by condemnation in the manner | ||||||
12 | provided for the exercise of the power of eminent domain under | ||||||
13 | the Eminent Domain Act. The power of condemnation shall be | ||||||
14 | exercised, however, solely for the purposes of one or more of | ||||||
15 | the following: siting, rights of way, and easements | ||||||
16 | appurtenant. In addition, the Agency may acquire by eminent | ||||||
17 | domain permanent easements for the delivery, transportation, | ||||||
18 | and storage of CO 2 and may lease those easements to any energy | ||||||
19 | facility on reasonable terms and conditions, as determined by | ||||||
20 | the Agency. The Agency shall not exercise its powers of | ||||||
21 | condemnation until it has used reasonable good faith efforts to | ||||||
22 | acquire the property before filing a petition for condemnation | ||||||
23 | and may thereafter use those powers when it determines that the | ||||||
24 | condemnation of the property rights is necessary to avoid | ||||||
25 | unreasonable delay or economic hardship to the progress of |
| |||||||
| |||||||
1 | activities carried out in the exercise of powers granted under | ||||||
2 | this Act. Before use of the power of condemnation for projects, | ||||||
3 | the Agency shall hold a public hearing to receive comments on | ||||||
4 | the exercise of the power of condemnation. The Agency shall use | ||||||
5 | the information received at the hearing in making its final | ||||||
6 | decision on the exercise of the power of condemnation. The | ||||||
7 | hearing shall be held in a location reasonably accessible to | ||||||
8 | the public interested in the decision. The Agency shall | ||||||
9 | promulgate guidelines for the conduct of the hearing. The | ||||||
10 | Agency shall conduct a feasibility study showing that the | ||||||
11 | taking is necessary to accomplish the purposes of this Act and | ||||||
12 | that is adequate to meet the environmental standards set forth | ||||||
13 | by the State and the federal governments. The Agency may not | ||||||
14 | exercise the authority provided in Article 20 of the Eminent | ||||||
15 | Domain Act (quick-take procedure) providing for immediate | ||||||
16 | possession in those proceedings. The Agency does not have the | ||||||
17 | power to exercise eminent domain over the property of any | ||||||
18 | public utility or any person owning an electric generating | ||||||
19 | plant.
| ||||||
20 | (Source: P.A. 95-481, eff. 8-28-07.) | ||||||
21 | (20 ILCS 3855/1-80) | ||||||
22 | (Text of Section before amendment by P.A. 95-1027 )
| ||||||
23 | Sec. 1-80. Resource Development Bureau. The Resource | ||||||
24 | Development Bureau has the following duties and | ||||||
25 | responsibilities: |
| |||||||
| |||||||
1 | (a) At the Agency's discretion, conduct feasibility | ||||||
2 | studies on the construction of any facility. Funding for a | ||||||
3 | study shall come from either: | ||||||
4 | (i) fees assessed by the Agency on municipal | ||||||
5 | electric systems, governmental aggregators, unit or | ||||||
6 | units of local government, or rural electric | ||||||
7 | cooperatives requesting the feasibility study; or | ||||||
8 | (ii) an appropriation from the General Assembly. | ||||||
9 | (b) If the Agency undertakes the construction of a | ||||||
10 | facility, moneys generated from the sale of revenue bonds | ||||||
11 | by the Authority for the facility shall be used to | ||||||
12 | reimburse the source of the money used for the facility's | ||||||
13 | feasibility study. | ||||||
14 | (c) The Agency may develop, finance, construct, or | ||||||
15 | operate electric generation and co-generation facilities | ||||||
16 | that use indigenous coal or renewable resources, or both, | ||||||
17 | financed with bonds issued by the Authority on behalf of | ||||||
18 | the Agency. Any such facility that uses coal must be a | ||||||
19 | clean coal facility and must be constructed in a location | ||||||
20 | where the geology is suitable for carbon sequestration. The | ||||||
21 | Agency may also develop, finance, construct, or operate a | ||||||
22 | carbon sequestration facility, including necessary | ||||||
23 | pipelines, transmission lines, or both. Preference shall | ||||||
24 | be given to technologies that enable carbon capture and | ||||||
25 | sites in locations where the geology is suitable for carbon | ||||||
26 | sequestration. |
| |||||||
| |||||||
1 | (1) The Agency may enter into contractual | ||||||
2 | arrangements with private and public entities, | ||||||
3 | including but not limited to municipal electric | ||||||
4 | systems, governmental aggregators, and rural electric | ||||||
5 | cooperatives, to plan, site, construct, improve, | ||||||
6 | rehabilitate, and operate those electric generation | ||||||
7 | and co-generation facilities. No contract shall be | ||||||
8 | entered into by the Agency that would jeopardize the | ||||||
9 | tax-exempt status of any bond issued in connection with | ||||||
10 | a project for which the Agency entered into the | ||||||
11 | contract. | ||||||
12 | (2) The Agency shall hold at least one public | ||||||
13 | hearing before entering into any such contractual | ||||||
14 | arrangements. At least 30-days' notice of the hearing | ||||||
15 | shall be given by publication once in each week during | ||||||
16 | that period in 6 newspapers within the State, at least | ||||||
17 | one of which has a circulation area that includes the | ||||||
18 | location of the proposed facility. | ||||||
19 | (3) The first facility that the Agency develops, | ||||||
20 | finances, or constructs shall be a facility that uses | ||||||
21 | coal produced in Illinois. The Agency may, however, | ||||||
22 | also develop, finance, or construct renewable energy | ||||||
23 | facilities after work on the first facility has | ||||||
24 | commenced. | ||||||
25 | (4) The Agency may not develop, finance, or | ||||||
26 | construct a nuclear power plant. |
| |||||||
| |||||||
1 | (5) The Agency shall assess fees to applicants | ||||||
2 | seeking to partner with the Agency on projects. | ||||||
3 | (d) Use of electricity generated by the Agency's | ||||||
4 | facilities. The Agency may supply electricity produced by | ||||||
5 | the Agency's facilities to municipal electric systems, | ||||||
6 | governmental aggregators, or rural electric cooperatives | ||||||
7 | in Illinois. The electricity shall be supplied at cost. | ||||||
8 | (1) Contracts to supply power and energy from the | ||||||
9 | Agency's facilities shall provide for the effectuation | ||||||
10 | of the policies set forth in this Act. | ||||||
11 | (2) The contracts shall also provide that, | ||||||
12 | notwithstanding any provision in the Public Utilities | ||||||
13 | Act, entities supplied with power and energy from an | ||||||
14 | Agency facility shall supply the power and energy to | ||||||
15 | retail customers at the same price paid to purchase | ||||||
16 | power and energy from the Agency. | ||||||
17 | (e) Electric utilities shall not be required to purchase | ||||||
18 | electricity directly or indirectly from facilities developed | ||||||
19 | or sponsored by the Agency. | ||||||
20 | (f) The Agency may sell excess capacity and excess energy | ||||||
21 | into the wholesale electric market at prevailing market rates; | ||||||
22 | provided, however, the Agency may not sell excess capacity or | ||||||
23 | excess energy through the procurement process described in | ||||||
24 | Section 16-111.5 of the Public Utilities Act. | ||||||
25 | (g) The Agency shall not directly sell electric power and | ||||||
26 | energy to retail customers. Nothing in this paragraph shall be |
| |||||||
| |||||||
1 | construed to prohibit sales to municipal electric systems, | ||||||
2 | governmental aggregators, or rural electric cooperatives.
| ||||||
3 | (Source: P.A. 95-481, eff. 8-28-07.) | ||||||
4 | (Text of Section after amendment by P.A. 95-1027 ) | ||||||
5 | Sec. 1-80. Resource Development Bureau. The Resource | ||||||
6 | Development Bureau has the following duties and | ||||||
7 | responsibilities: | ||||||
8 | (a) At the Agency's discretion, conduct feasibility | ||||||
9 | studies on the construction of any facility. Funding for a | ||||||
10 | study shall come from either: | ||||||
11 | (i) fees assessed by the Agency on municipal | ||||||
12 | electric systems, governmental aggregators, unit or | ||||||
13 | units of local government, or rural electric | ||||||
14 | cooperatives requesting the feasibility study; or | ||||||
15 | (ii) an appropriation from the General Assembly. | ||||||
16 | (b) If the Agency undertakes the construction of a | ||||||
17 | facility, moneys generated from the sale of revenue bonds | ||||||
18 | by the Authority for the facility shall be used to | ||||||
19 | reimburse the source of the money used for the facility's | ||||||
20 | feasibility study. | ||||||
21 | (c) The Agency may develop, finance, construct, or | ||||||
22 | operate electric generation and co-generation facilities | ||||||
23 | that use indigenous coal or renewable resources, or both, | ||||||
24 | financed with bonds issued by the Authority on behalf of | ||||||
25 | the Agency. Any such facility that uses coal must be a |
| |||||||
| |||||||
1 | clean coal facility and must be constructed in a location | ||||||
2 | where the geology is suitable for carbon sequestration. The | ||||||
3 | Agency may also develop, finance, construct, or operate a | ||||||
4 | carbon sequestration facility , including necessary | ||||||
5 | pipelines, transmission lines, or both . | ||||||
6 | (1) The Agency may enter into contractual | ||||||
7 | arrangements with private and public entities, | ||||||
8 | including but not limited to municipal electric | ||||||
9 | systems, governmental aggregators, and rural electric | ||||||
10 | cooperatives, to plan, site, construct, improve, | ||||||
11 | rehabilitate, and operate those electric generation | ||||||
12 | and co-generation facilities. No contract shall be | ||||||
13 | entered into by the Agency that would jeopardize the | ||||||
14 | tax-exempt status of any bond issued in connection with | ||||||
15 | a project for which the Agency entered into the | ||||||
16 | contract. | ||||||
17 | (2) The Agency shall hold at least one public | ||||||
18 | hearing before entering into any such contractual | ||||||
19 | arrangements. At least 30-days' notice of the hearing | ||||||
20 | shall be given by publication once in each week during | ||||||
21 | that period in 6 newspapers within the State, at least | ||||||
22 | one of which has a circulation area that includes the | ||||||
23 | location of the proposed facility. | ||||||
24 | (3) The first facility that the Agency develops, | ||||||
25 | finances, or constructs shall be a facility that uses | ||||||
26 | coal produced in Illinois. The Agency may, however, |
| |||||||
| |||||||
1 | also develop, finance, or construct renewable energy | ||||||
2 | facilities after work on the first facility has | ||||||
3 | commenced. | ||||||
4 | (4) The Agency may not develop, finance, or | ||||||
5 | construct a nuclear power plant. | ||||||
6 | (5) The Agency shall assess fees to applicants | ||||||
7 | seeking to partner with the Agency on projects. | ||||||
8 | (d) Use of electricity generated by the Agency's | ||||||
9 | facilities. The Agency may supply electricity produced by | ||||||
10 | the Agency's facilities to municipal electric systems, | ||||||
11 | governmental aggregators, or rural electric cooperatives | ||||||
12 | in Illinois. The electricity shall be supplied at cost. | ||||||
13 | (1) Contracts to supply power and energy from the | ||||||
14 | Agency's facilities shall provide for the effectuation | ||||||
15 | of the policies set forth in this Act. | ||||||
16 | (2) The contracts shall also provide that, | ||||||
17 | notwithstanding any provision in the Public Utilities | ||||||
18 | Act, entities supplied with power and energy from an | ||||||
19 | Agency facility shall supply the power and energy to | ||||||
20 | retail customers at the same price paid to purchase | ||||||
21 | power and energy from the Agency. | ||||||
22 | (e) Electric utilities shall not be required to purchase | ||||||
23 | electricity directly or indirectly from facilities developed | ||||||
24 | or sponsored by the Agency. | ||||||
25 | (f) The Agency may sell excess capacity and excess energy | ||||||
26 | into the wholesale electric market at prevailing market rates; |
| |||||||
| |||||||
1 | provided, however, the Agency may not sell excess capacity or | ||||||
2 | excess energy through the procurement process described in | ||||||
3 | Section 16-111.5 of the Public Utilities Act. | ||||||
4 | (g) The Agency shall not directly sell electric power and | ||||||
5 | energy to retail customers. Nothing in this paragraph shall be | ||||||
6 | construed to prohibit sales to municipal electric systems, | ||||||
7 | governmental aggregators, or rural electric cooperatives.
| ||||||
8 | (Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09.)
| ||||||
9 | Section 10-10. The Public Utilities Act is amended by | ||||||
10 | changing Sections 8-406 and 9-220 and by adding Section 4-105 | ||||||
11 | as follows: | ||||||
12 | (220 ILCS 5/4-105 new)
| ||||||
13 | Sec. 4-105. Expedited permitting. The rules of the | ||||||
14 | Commission must include a process for expediting the issuance | ||||||
15 | of permits and licenses for projects at energy facilities that | ||||||
16 | are subject to Commission regulation as of January 1, 2009, as | ||||||
17 | that term is used in Section 1-10 of the Illinois Power Agency | ||||||
18 | Act. The Commission may engage the experts and additional | ||||||
19 | resources that are reasonably necessary for implementing this | ||||||
20 | process. An applicant must request the use of an expedited | ||||||
21 | process, and any additional costs for using that process shall | ||||||
22 | be borne by the applicant.
| ||||||
23 | (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
|
| |||||||
| |||||||
1 | Sec. 8-406. Certificate of public convenience and | ||||||
2 | necessity.
| ||||||
3 | (a) No public utility not owning any city or village
| ||||||
4 | franchise nor engaged in performing any public service or in | ||||||
5 | furnishing any
product or commodity within this State as of | ||||||
6 | July 1, 1921 and not
possessing a certificate of
public | ||||||
7 | convenience and necessity from the Illinois Commerce | ||||||
8 | Commission,
the State Public Utilities Commission or
the Public | ||||||
9 | Utilities Commission, at the time this amendatory Act of 1985 | ||||||
10 | goes
into effect, shall transact any business in this State | ||||||
11 | until it shall have
obtained a certificate from the Commission | ||||||
12 | that public convenience and
necessity require the transaction | ||||||
13 | of such business.
| ||||||
14 | (b) No public utility shall begin the construction of any | ||||||
15 | new plant,
equipment, property or facility which is not in | ||||||
16 | substitution of any
existing plant, equipment, property or | ||||||
17 | facility or any extension or
alteration thereof or in addition | ||||||
18 | thereto,
unless and until it shall have obtained from the
| ||||||
19 | Commission a certificate that public convenience and necessity | ||||||
20 | require such
construction. Whenever after a hearing the | ||||||
21 | Commission determines that any
new construction or the | ||||||
22 | transaction of any business by a public utility will
promote | ||||||
23 | the public convenience and is necessary thereto, it shall have | ||||||
24 | the
power to issue certificates of public convenience and | ||||||
25 | necessity. The
Commission shall determine that proposed | ||||||
26 | construction will promote the
public convenience and necessity |
| |||||||
| |||||||
1 | only if the utility demonstrates: (1) that the
proposed | ||||||
2 | construction is necessary to provide adequate, reliable, and
| ||||||
3 | efficient service to its customers and is the
least-cost means | ||||||
4 | of
satisfying the service needs of its customers or that the | ||||||
5 | proposed construction will promote the development of an | ||||||
6 | effectively competitive electricity market that operates | ||||||
7 | efficiently, is equitable to all customers, and is the least | ||||||
8 | cost means of satisfying those objectives;
(2) that the utility | ||||||
9 | is capable of efficiently managing and
supervising the | ||||||
10 | construction process and has taken sufficient action to
ensure | ||||||
11 | adequate and efficient construction and supervision thereof; | ||||||
12 | and (3)
that the utility is capable of financing the proposed | ||||||
13 | construction without
significant adverse financial | ||||||
14 | consequences for the utility or its
customers.
| ||||||
15 | (c) (Blank). After the effective date of this amendatory | ||||||
16 | Act of 1987, no
construction shall commence on any new nuclear
| ||||||
17 | power plant to be located within this State, and no certificate | ||||||
18 | of public
convenience and necessity or other authorization | ||||||
19 | shall be issued therefor
by the Commission, until the Director | ||||||
20 | of the Illinois Environmental
Protection Agency finds that the | ||||||
21 | United States Government, through its
authorized agency, has | ||||||
22 | identified and approved a demonstrable technology or
means for | ||||||
23 | the disposal of high level nuclear waste, or until such
| ||||||
24 | construction has been specifically approved by a statute | ||||||
25 | enacted by the General
Assembly.
| ||||||
26 | As used in this Section, "high level nuclear waste" means |
| |||||||
| |||||||
1 | those aqueous
wastes resulting from the operation of the first | ||||||
2 | cycle of the solvent
extraction system or equivalent and the | ||||||
3 | concentrated wastes of the
subsequent extraction cycles or | ||||||
4 | equivalent in a facility for reprocessing
irradiated reactor | ||||||
5 | fuel and shall include spent fuel assemblies prior to
fuel | ||||||
6 | reprocessing.
| ||||||
7 | (d) In making its determination, the Commission shall | ||||||
8 | attach primary
weight to the cost or cost savings to the | ||||||
9 | customers of the utility. The
Commission may consider any or | ||||||
10 | all factors which will or may affect such
cost or cost savings.
| ||||||
11 | (e) The Commission may issue a temporary certificate which | ||||||
12 | shall remain
in force not to exceed one year in cases of | ||||||
13 | emergency, to assure maintenance
of adequate service or to | ||||||
14 | serve particular customers, without notice or
hearing, pending | ||||||
15 | the determination of an application for a certificate, and
may | ||||||
16 | by regulation exempt from the requirements of this Section | ||||||
17 | temporary
acts or operations for which the issuance of a | ||||||
18 | certificate will not be
required in the public interest.
| ||||||
19 | A public utility shall not be required to obtain but may | ||||||
20 | apply for and
obtain a certificate of public convenience and | ||||||
21 | necessity pursuant to this
Section with respect to any matter | ||||||
22 | as to which it has received the
authorization or order of the | ||||||
23 | Commission under the Electric Supplier Act,
and any such | ||||||
24 | authorization or order granted a public utility by the
| ||||||
25 | Commission under that Act shall as between public utilities be | ||||||
26 | deemed to
be, and shall have except as provided in that Act the |
| |||||||
| |||||||
1 | same force and effect
as, a certificate of public convenience | ||||||
2 | and necessity issued pursuant to this
Section.
| ||||||
3 | No electric cooperative shall be made or shall become a | ||||||
4 | party to or shall
be entitled to be heard or to otherwise | ||||||
5 | appear or participate in any
proceeding initiated under this | ||||||
6 | Section for authorization of power plant
construction and as to | ||||||
7 | matters as to which a remedy is available under The
Electric | ||||||
8 | Supplier Act.
| ||||||
9 | (f) Such certificates may be altered or modified by the | ||||||
10 | Commission, upon
its own motion or upon application by the | ||||||
11 | person or corporation affected.
Unless exercised within a | ||||||
12 | period of 2 years from the grant thereof
authority conferred by | ||||||
13 | a certificate of convenience and necessity issued by
the | ||||||
14 | Commission shall be null and void.
| ||||||
15 | No certificate of public convenience and necessity shall be | ||||||
16 | construed as
granting a monopoly or an exclusive privilege, | ||||||
17 | immunity or franchise.
| ||||||
18 | (Source: P.A. 95-700, eff. 11-9-07.)
| ||||||
19 | (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220)
| ||||||
20 | (Text of Section before amendment by P.A. 95-1027 )
| ||||||
21 | Sec. 9-220. Rate changes based on changes in fuel costs.
| ||||||
22 | (a) Notwithstanding the provisions of Section 9-201, the
| ||||||
23 | Commission may authorize the increase or decrease of rates and | ||||||
24 | charges
based upon changes in the cost of fuel used in the | ||||||
25 | generation or production
of electric power, changes in the cost |
| |||||||
| |||||||
1 | of purchased power, or changes in
the cost of purchased gas | ||||||
2 | through the application of fuel adjustment
clauses or purchased | ||||||
3 | gas adjustment clauses. The Commission may also
authorize the | ||||||
4 | increase or decrease of rates and charges based upon | ||||||
5 | expenditures
or revenues resulting from the purchase or sale of | ||||||
6 | emission allowances created
under the federal Clean Air Act | ||||||
7 | Amendments of 1990,
through such fuel adjustment clauses, as a | ||||||
8 | cost of fuel. For the purposes of
this paragraph, cost of fuel | ||||||
9 | used in the generation or production of electric
power shall | ||||||
10 | include the amount of any fees paid by the utility for the
| ||||||
11 | implementation and operation of a process for the | ||||||
12 | desulfurization of the
flue gas when burning high sulfur coal | ||||||
13 | at any location within the State of
Illinois irrespective of | ||||||
14 | the attainment status designation of such
location; but shall | ||||||
15 | not include transportation costs
of coal
(i) except to the | ||||||
16 | extent that for contracts entered into on
and after the | ||||||
17 | effective date of this amendatory Act of 1997,
the cost of the | ||||||
18 | coal, including transportation costs,
constitutes the lowest | ||||||
19 | cost for adequate and reliable fuel
supply reasonably available | ||||||
20 | to the public utility in
comparison to the cost, including | ||||||
21 | transportation costs, of
other adequate and reliable sources of | ||||||
22 | fuel supply reasonably
available to the public utility, or (ii)
| ||||||
23 | except as otherwise provided in the next 3 sentences of this | ||||||
24 | paragraph.
Such costs of fuel
shall, when requested by a | ||||||
25 | utility or at the conclusion of the utility's
next general | ||||||
26 | electric rate proceeding, whichever shall first occur, include
|
| |||||||
| |||||||
1 | transportation costs of coal purchased under existing coal | ||||||
2 | purchase
contracts. For purposes of this paragraph "existing | ||||||
3 | coal purchase
contracts" means contracts for the purchase of | ||||||
4 | coal in effect on the
effective date of this amendatory Act of | ||||||
5 | 1991, as such contracts may
thereafter be amended, but only to | ||||||
6 | the extent that any such amendment does
not increase the | ||||||
7 | aggregate quantity of coal to be purchased under such
contract.
| ||||||
8 | Nothing herein shall authorize an electric utility
to recover | ||||||
9 | through its fuel adjustment clause any amounts of
| ||||||
10 | transportation costs of coal that were included in the revenue
| ||||||
11 | requirement used to set base rates in its most recent general
| ||||||
12 | rate proceeding.
Cost shall be based upon uniformly applied | ||||||
13 | accounting
principles. Annually, the Commission shall initiate | ||||||
14 | public hearings to
determine whether the clauses reflect actual | ||||||
15 | costs of fuel, gas, power, or
coal transportation purchased to | ||||||
16 | determine whether such purchases were
prudent, and to reconcile | ||||||
17 | any amounts collected with the actual costs of
fuel, power, | ||||||
18 | gas, or coal transportation prudently purchased. In each such
| ||||||
19 | proceeding, the burden of proof shall be upon the utility to | ||||||
20 | establish the
prudence of its cost of fuel, power, gas, or coal
| ||||||
21 | transportation purchases
and costs.
The Commission shall
issue | ||||||
22 | its final order in each such annual proceeding for an
electric | ||||||
23 | utility by December 31 of the year immediately
following the | ||||||
24 | year to which the proceeding pertains, provided,
that the | ||||||
25 | Commission shall issue its final order with respect
to such | ||||||
26 | annual proceeding for the years 1996 and earlier by December |
| |||||||
| |||||||
1 | 31, 1998.
| ||||||
2 | (b) A public utility providing electric service, other than | ||||||
3 | a public utility
described in subsections (e) or (f) of this | ||||||
4 | Section, may at
any time during the mandatory transition period | ||||||
5 | file with the
Commission proposed tariff sheets that eliminate | ||||||
6 | the public
utility's fuel adjustment clause and adjust the | ||||||
7 | public
utility's base rate tariffs by the amount necessary for | ||||||
8 | the
base fuel component of the base rates to recover the public
| ||||||
9 | utility's average fuel and power supply costs per kilowatt-hour | ||||||
10 | for the 2
most recent years for which the Commission
has issued | ||||||
11 | final orders in annual proceedings pursuant to
subsection (a), | ||||||
12 | where the average fuel and power supply costs
per kilowatt-hour | ||||||
13 | shall be calculated as the sum of the public
utility's prudent | ||||||
14 | and allowable fuel and power supply costs as
found by the | ||||||
15 | Commission in the 2 proceedings divided by the
public utility's | ||||||
16 | actual jurisdictional kilowatt-hour sales for
those 2 years. | ||||||
17 | Notwithstanding any contrary or inconsistent
provisions in | ||||||
18 | Section 9-201 of this Act, in subsection (a) of
this Section or | ||||||
19 | in any rules or regulations promulgated by the
Commission | ||||||
20 | pursuant to subsection (g) of this Section, the
Commission | ||||||
21 | shall review and shall by order approve, or approve
as | ||||||
22 | modified, the proposed tariff sheets within 60 days after
the | ||||||
23 | date of the public utility's filing. The Commission may
modify | ||||||
24 | the public utility's proposed tariff sheets only to the
extent | ||||||
25 | the Commission finds necessary to achieve conformance
to the | ||||||
26 | requirements of this subsection (b). During the 5
years |
| |||||||
| |||||||
1 | following the date of the Commission's order, but in any
event | ||||||
2 | no earlier than January 1, 2007, a public utility whose
fuel | ||||||
3 | adjustment clause has been eliminated pursuant to this
| ||||||
4 | subsection shall not file proposed tariff sheets seeking, or
| ||||||
5 | otherwise petition the Commission for, reinstatement of a fuel
| ||||||
6 | adjustment clause.
| ||||||
7 | (c) Notwithstanding any contrary or inconsistent
| ||||||
8 | provisions in Section 9-201 of this Act, in subsection (a) of
| ||||||
9 | this Section or in any rules or regulations promulgated by the
| ||||||
10 | Commission pursuant to subsection (g) of this Section, a
public | ||||||
11 | utility providing electric service, other than a public utility
| ||||||
12 | described
in subsection (e) or (f) of this Section, may at any | ||||||
13 | time
during the mandatory transition period file with the
| ||||||
14 | Commission proposed tariff sheets that establish the rate per
| ||||||
15 | kilowatt-hour to be applied pursuant to the public utility's
| ||||||
16 | fuel adjustment clause at the average value for such rate
| ||||||
17 | during the preceding 24 months, provided that such average
rate | ||||||
18 | results in a credit to customers' bills, without making
any | ||||||
19 | revisions to the public utility's base rate tariffs. The
| ||||||
20 | proposed tariff sheets shall establish the fuel adjustment
rate | ||||||
21 | for a specific time period of at least 3 years but not
more | ||||||
22 | than 5 years, provided that the terms and conditions for
any | ||||||
23 | reinstatement earlier than 5 years shall be set forth in
the | ||||||
24 | proposed tariff sheets and subject to modification or
approval | ||||||
25 | by the Commission. The Commission shall review and
shall by | ||||||
26 | order approve the proposed tariff sheets if it finds
that the |
| |||||||
| |||||||
1 | requirements of this subsection are met. The
Commission shall | ||||||
2 | not conduct the annual hearings specified in the
last 3 | ||||||
3 | sentences of subsection (a) of this Section for the
utility for | ||||||
4 | the period that the factor established pursuant to
this | ||||||
5 | subsection is in effect.
| ||||||
6 | (d) A public utility providing electric service, or a | ||||||
7 | public utility
providing gas service
may file with the | ||||||
8 | Commission proposed tariff sheets that
eliminate the public | ||||||
9 | utility's fuel or purchased gas
adjustment clause and adjust | ||||||
10 | the public utility's base rate
tariffs to provide for recovery | ||||||
11 | of power supply costs or gas
supply costs that would have been | ||||||
12 | recovered through such
clause; provided, that the provisions of | ||||||
13 | this subsection (d) shall not be
available to a public utility | ||||||
14 | described in subsections (e) or (f) of this
Section to | ||||||
15 | eliminate its fuel adjustment clause. Notwithstanding any | ||||||
16 | contrary
or inconsistent
provisions in Section 9-201 of this | ||||||
17 | Act, in subsection (a) of
this Section, or in any rules or | ||||||
18 | regulations promulgated by
the Commission pursuant to | ||||||
19 | subsection (g) of this Section, the
Commission shall review and | ||||||
20 | shall by order approve, or approve
as modified in the | ||||||
21 | Commission's order, the proposed tariff
sheets within 240 days | ||||||
22 | after the date of the public utility's
filing. The Commission's | ||||||
23 | order shall approve rates and
charges that the Commission, | ||||||
24 | based on information in the
public utility's filing or on the | ||||||
25 | record if a hearing is held
by the Commission, finds will | ||||||
26 | recover the reasonable, prudent
and necessary jurisdictional |
| |||||||
| |||||||
1 | power supply costs or gas supply
costs incurred or to be | ||||||
2 | incurred by the public utility during
a 12 month period found | ||||||
3 | by the Commission to be appropriate
for these purposes, | ||||||
4 | provided, that such period shall be either
(i) a 12 month | ||||||
5 | historical period occurring during the 15
months ending on the | ||||||
6 | date of the public utility's filing, or
(ii) a 12 month future | ||||||
7 | period ending no later than 15 months
following the date of the | ||||||
8 | public utility's filing. The public
utility shall include with | ||||||
9 | its tariff filing information
showing both (1) its actual | ||||||
10 | jurisdictional power supply costs
or gas supply costs for a 12 | ||||||
11 | month historical period
conforming to (i) above and (2) its | ||||||
12 | projected jurisdictional
power supply costs or gas supply costs | ||||||
13 | for a future 12 month
period conforming to (ii) above. If the | ||||||
14 | Commission's order
requires modifications in the tariff sheets | ||||||
15 | filed by the
public utility, the public utility shall have 7 | ||||||
16 | days following
the date of the order to notify the Commission | ||||||
17 | whether the
public utility will implement the modified tariffs | ||||||
18 | or elect to
continue its fuel or purchased gas adjustment | ||||||
19 | clause in force
as though no order had been entered. The | ||||||
20 | Commission's order
shall provide for any reconciliation of | ||||||
21 | power supply costs or
gas supply costs, as the case may be, and | ||||||
22 | associated revenues
through the date that the public utility's | ||||||
23 | fuel or purchased
gas adjustment clause is eliminated. During | ||||||
24 | the 5 years
following the date of the Commission's order, a | ||||||
25 | public utility
whose fuel or purchased gas adjustment clause | ||||||
26 | has been
eliminated pursuant to this subsection shall not file |
| |||||||
| |||||||
1 | proposed
tariff sheets seeking, or otherwise petition the | ||||||
2 | Commission
for, reinstatement or adoption of a fuel or | ||||||
3 | purchased gas
adjustment clause. Nothing in this subsection (d) | ||||||
4 | shall be
construed as limiting the Commission's authority to | ||||||
5 | eliminate
a public utility's fuel adjustment clause or | ||||||
6 | purchased gas
adjustment clause in accordance with any other | ||||||
7 | applicable
provisions of this Act.
| ||||||
8 | (e) Notwithstanding any contrary or inconsistent | ||||||
9 | provisions in
Section 9-201 of this Act, in subsection (a) of | ||||||
10 | this Section, or in
any rules promulgated by the Commission | ||||||
11 | pursuant
to subsection (g) of this Section, a public utility | ||||||
12 | providing
electric service to more than 1,000,000 customers in | ||||||
13 | this State may, within the
first 6 months after the
effective | ||||||
14 | date of this amendatory Act of 1997, file with the
Commission | ||||||
15 | proposed tariff sheets that eliminate, effective
January 1, | ||||||
16 | 1997, the public utility's fuel adjustment clause
without | ||||||
17 | adjusting its base rates, and such tariff sheets shall be
| ||||||
18 | effective upon filing. To the extent the application of the | ||||||
19 | fuel
adjustment clause had resulted in net charges to customers | ||||||
20 | after
January 1, 1997, the utility shall also file a tariff | ||||||
21 | sheet that
provides for a refund stated on a per kilowatt-hour | ||||||
22 | basis of such
charges over a period not to exceed 6 months; | ||||||
23 | provided
however, that such refund shall not include the | ||||||
24 | proportional
amounts of taxes paid under the Use Tax Act, | ||||||
25 | Service Use Tax Act,
Service Occupation Tax Act, and Retailers' | ||||||
26 | Occupation Tax Act on
fuel used in generation. The Commission |
| |||||||
| |||||||
1 | shall issue an order
within 45 days after the date of the | ||||||
2 | public utility's filing
approving or approving as modified such | ||||||
3 | tariff sheet. If the fuel
adjustment clause is eliminated | ||||||
4 | pursuant to this subsection, the
Commission shall not conduct | ||||||
5 | the annual hearings specified in the
last 3 sentences of | ||||||
6 | subsection (a) of this Section for the
utility for any period | ||||||
7 | after December 31, 1996 and prior to any
reinstatement of such | ||||||
8 | clause. A public utility whose fuel
adjustment clause has been | ||||||
9 | eliminated pursuant to this subsection
shall not file a | ||||||
10 | proposed tariff sheet seeking, or otherwise
petition the | ||||||
11 | Commission for, reinstatement of the fuel adjustment
clause | ||||||
12 | prior to January 1, 2007.
| ||||||
13 | (f) Notwithstanding any contrary or inconsistent | ||||||
14 | provisions in Section
9-201 of this Act, in subsection (a) of | ||||||
15 | this Section, or in any rules or
regulations promulgated by the | ||||||
16 | Commission pursuant to subsection (g) of this
Section, a public | ||||||
17 | utility providing electric service to more than 500,000
| ||||||
18 | customers but fewer than 1,000,000 customers in this State may, | ||||||
19 | within the
first
6 months after the effective date of this | ||||||
20 | amendatory Act of 1997, file with the
Commission proposed | ||||||
21 | tariff sheets that eliminate, effective January 1, 1997,
the | ||||||
22 | public utility's fuel adjustment clause and adjust its base | ||||||
23 | rates by the
amount necessary for the base fuel component of | ||||||
24 | the base rates to recover
91% of the public utility's average | ||||||
25 | fuel and power supply costs for the 2 most
recent years for | ||||||
26 | which the Commission, as of January 1, 1997, has issued final
|
| |||||||
| |||||||
1 | orders in annual proceedings pursuant to subsection (a), where | ||||||
2 | the average fuel
and power supply costs per kilowatt-hour shall | ||||||
3 | be calculated as the sum of the
public utility's prudent and | ||||||
4 | allowable fuel and power supply costs as found by
the | ||||||
5 | Commission in the 2 proceedings divided by the public utility's | ||||||
6 | actual
jurisdictional kilowatt-hour sales for those 2 years, | ||||||
7 | provided, that such
tariff sheets shall be effective upon | ||||||
8 | filing. To the extent the application of
the fuel adjustment | ||||||
9 | clause had resulted in net charges to customers after
January | ||||||
10 | 1, 1997, the utility shall also file a tariff sheet that | ||||||
11 | provides for a
refund stated on a per kilowatt-hour basis of | ||||||
12 | such charges over a period not to
exceed 6 months. Provided | ||||||
13 | however, that such refund shall not include the
proportional | ||||||
14 | amounts of taxes paid under the Use Tax Act, Service Use Tax | ||||||
15 | Act,
Service Occupation Tax Act, and Retailers' Occupation Tax | ||||||
16 | Act on fuel used in
generation. The Commission shall issue an | ||||||
17 | order within 45 days after the date
of the public utility's | ||||||
18 | filing approving or approving as modified such tariff
sheet. If | ||||||
19 | the fuel adjustment clause is eliminated pursuant to this
| ||||||
20 | subsection, the Commission shall not conduct the annual | ||||||
21 | hearings specified in
the last 3 sentences of subsection (a) of | ||||||
22 | this Section for the utility for any
period after December 31, | ||||||
23 | 1996 and prior to any reinstatement of such clause.
A public | ||||||
24 | utility whose fuel adjustment clause has been eliminated | ||||||
25 | pursuant to
this subsection shall not file a proposed tariff | ||||||
26 | sheet seeking, or otherwise
petition the Commission for, |
| |||||||
| |||||||
1 | reinstatement of the fuel adjustment clause prior
to January 1, | ||||||
2 | 2007.
| ||||||
3 | (g) The Commission shall have authority to promulgate rules | ||||||
4 | and
regulations to
carry out the provisions of this Section.
| ||||||
5 | (h) Any gas utility may enter into a contract for up to 20 | ||||||
6 | years of supply with any company for the purchase of substitute | ||||||
7 | natural gas (SNG) produced from coal through the gasification | ||||||
8 | process if the company has commenced construction of a coal | ||||||
9 | gasification facility by July 1, 2010. The cost for the SNG is | ||||||
10 | reasonable and prudent and recoverable through the purchased | ||||||
11 | gas adjustment clause for years one through 10 of the contract | ||||||
12 | if: (i) the only coal used in the gasification process has high | ||||||
13 | volatile bituminous rank and greater than 1.7 pounds of sulfur | ||||||
14 | per million Btu content; (ii) at the time the contract term | ||||||
15 | commences, the price per million Btu does not exceed $7.95 in | ||||||
16 | 2008 dollars, adjusted annually based on the change in the | ||||||
17 | Annual Consumer Price Index for All Urban Consumers for the | ||||||
18 | Midwest Region as published in April by the United States | ||||||
19 | Department of Labor, Bureau of Labor Statistics (or a suitable | ||||||
20 | Consumer Price Index calculation if this Consumer Price Index | ||||||
21 | is not available) for the previous calendar year; provided that | ||||||
22 | the price per million Btu shall not exceed $9.95 at any time | ||||||
23 | during the contract; (iii) the utility's aggregate long-term | ||||||
24 | supply contracts for the purchase of SNG does not exceed 25% of | ||||||
25 | the annual system supply requirements of the utility at the | ||||||
26 | time the contract is entered into and the quantity of SNG |
| |||||||
| |||||||
1 | supplied to a utility by any one producer may not exceed 20 | ||||||
2 | billion cubic feet per year; and (iv) the contract is entered | ||||||
3 | into within 120 days after the effective date of this | ||||||
4 | amendatory Act of the 96th General Assembly and terminates no | ||||||
5 | more than 20 years after the commencement of the commercial | ||||||
6 | production of SNG at the facility. Contracts greater than 10 | ||||||
7 | years shall provide that if, at any time during supply years 11 | ||||||
8 | through 20 of the contract, the Commission determines that the | ||||||
9 | cost for the synthetic natural gas purchased under the contract | ||||||
10 | during supply years 11 through 20 is not reasonable and | ||||||
11 | prudent, then the company shall reimburse the utility for the | ||||||
12 | difference between the cost deemed reasonable and prudent by | ||||||
13 | the Commission and the cost imposed under the contract. All | ||||||
14 | such contracts, regardless of duration, shall require the owner | ||||||
15 | of any facility supplying SNG under the contract to provide | ||||||
16 | documentation to the Commission each year, starting in the | ||||||
17 | facility's first year of commercial operation, accurately | ||||||
18 | reporting the quantity of carbon dioxide emissions from the | ||||||
19 | facility that have been captured and sequestered and reporting | ||||||
20 | any quantities of carbon dioxide released from the site or | ||||||
21 | sites at which carbon dioxide emissions were sequestered in | ||||||
22 | prior years, based on continuous monitoring of those sites. If, | ||||||
23 | in any year, the owner of the facility fails to demonstrate | ||||||
24 | that the SNG facility captured and sequestered at least 90% of | ||||||
25 | the total carbon dioxide emissions that the facility would | ||||||
26 | otherwise emit or that sequestration of emissions from prior |
| |||||||
| |||||||
1 | years has failed, resulting in the release of carbon dioxide | ||||||
2 | into the atmosphere, then the owner of the facility must offset | ||||||
3 | excess emissions. Any such carbon dioxide offsets must be | ||||||
4 | permanent, additional, verifiable, real, located within the | ||||||
5 | State of Illinois, and legally and practicably enforceable. The | ||||||
6 | costs of such offsets shall not exceed $40 million in any given | ||||||
7 | year. No costs of any purchases of carbon offsets may be | ||||||
8 | recovered from a utility or its customers. All carbon offsets | ||||||
9 | purchased for this purpose must be permanently retired. In | ||||||
10 | addition, carbon dioxide emission credits equivalent to 50% of | ||||||
11 | the amount of credits associated with the required | ||||||
12 | sequestration of carbon dioxide from the facility must be | ||||||
13 | permanently retired. Compliance with the sequestration | ||||||
14 | requirements and the offset purchase requirements specified in | ||||||
15 | this subsection (h) shall be assessed annually by an | ||||||
16 | independent expert retained by the owner of the SNG facility, | ||||||
17 | with the advance written approval of the Attorney General. An | ||||||
18 | SNG facility operating pursuant to this subsection (h) shall | ||||||
19 | not forfeit its designation as a clean coal SNG facility if the | ||||||
20 | facility fails to fully comply with the applicable carbon | ||||||
21 | sequestration requirements in any given year, provided the | ||||||
22 | requisite offsets are purchased. However, the Attorney | ||||||
23 | General, on behalf of the People of the State of Illinois, may | ||||||
24 | specifically enforce the facility's sequestration | ||||||
25 | requirements. Except for an initial clean coal facility, as | ||||||
26 | that term is used in item (3) of subsection (d) of Section 1-75 |
| |||||||
| |||||||
1 | of the Illinois Power Agency Act, an energy facility and a gas | ||||||
2 | facility may enter into a 20-year supply contract, with a | ||||||
3 | company that has commenced construction of a coal gasification | ||||||
4 | facility after July 1, 2010, that shall not be subject to any | ||||||
5 | subsequent prudency review by the Commission if the contract | ||||||
6 | was found prudent at the time the contract was agreed upon by | ||||||
7 | the parties. Any gas utility may enter into a 20-year supply | ||||||
8 | contract with any company for synthetic natural gas produced | ||||||
9 | from coal through the gasification process if the company has | ||||||
10 | commenced construction of a coal gasification facility by July | ||||||
11 | 1, 2008. The cost for the synthetic natural gas is reasonable | ||||||
12 | and prudent and recoverable through the purchased gas | ||||||
13 | adjustment clause for years one through 10 of the contract if: | ||||||
14 | (i) the only coal used in the gasification process has high | ||||||
15 | volatile bituminous rank and greater than 1.7 pounds of sulfur | ||||||
16 | per million Btu content; (ii) at the time the contract term | ||||||
17 | commences, the price per million Btu does not exceed $5 in 2004 | ||||||
18 | dollars, adjusted annually based on the change in the Annual | ||||||
19 | Consumer Price Index for All Urban Consumers for the Midwest | ||||||
20 | Region as published in April by the United States Department of | ||||||
21 | Labor, Bureau of Labor Statistics (or a suitable Consumer Price | ||||||
22 | Index calculation if this Consumer Price Index is not | ||||||
23 | available) for the previous calendar year; provided that the | ||||||
24 | price per million Btu shall not exceed $5.50 at any time during | ||||||
25 | the contract; (iii) the utility's aggregate long-term supply | ||||||
26 | contracts for the purchase of synthetic natural gas produced |
| |||||||
| |||||||
1 | from coal through the gasification process does not exceed 25% | ||||||
2 | of the annual system supply requirements of the utility at the | ||||||
3 | time the contract is entered into; and (iv) the contract is | ||||||
4 | entered into within one year after the effective date of this | ||||||
5 | amendatory Act of the 94th General Assembly and terminates 20 | ||||||
6 | years after the commencement of the production of synthetic | ||||||
7 | natural gas. The contract shall provide that if, at any time | ||||||
8 | during years 11 through 20 of the contract, the Commission | ||||||
9 | determines that the cost for the synthetic natural gas under | ||||||
10 | the contract is not reasonable and prudent, then the company | ||||||
11 | shall reimburse the utility for the difference between the cost | ||||||
12 | deemed reasonable and prudent by the Commission and the cost | ||||||
13 | imposed under the contract. | ||||||
14 | (i) If a gas utility or an affiliate of a gas utility has | ||||||
15 | an ownership interest in any entity that produces or sells | ||||||
16 | synthetic natural gas, Article VII of this Act shall apply.
| ||||||
17 | (Source: P.A. 94-63, eff. 6-21-05.)
| ||||||
18 | (Text of Section after amendment by P.A. 95-1027 )
| ||||||
19 | Sec. 9-220. Rate changes based on changes in fuel costs.
| ||||||
20 | (a) Notwithstanding the provisions of Section 9-201, the
| ||||||
21 | Commission may authorize the increase or decrease of rates and | ||||||
22 | charges
based upon changes in the cost of fuel used in the | ||||||
23 | generation or production
of electric power, changes in the cost | ||||||
24 | of purchased power, or changes in
the cost of purchased gas | ||||||
25 | through the application of fuel adjustment
clauses or purchased |
| |||||||
| |||||||
1 | gas adjustment clauses. The Commission may also
authorize the | ||||||
2 | increase or decrease of rates and charges based upon | ||||||
3 | expenditures
or revenues resulting from the purchase or sale of | ||||||
4 | emission allowances created
under the federal Clean Air Act | ||||||
5 | Amendments of 1990,
through such fuel adjustment clauses, as a | ||||||
6 | cost of fuel. For the purposes of
this paragraph, cost of fuel | ||||||
7 | used in the generation or production of electric
power shall | ||||||
8 | include the amount of any fees paid by the utility for the
| ||||||
9 | implementation and operation of a process for the | ||||||
10 | desulfurization of the
flue gas when burning high sulfur coal | ||||||
11 | at any location within the State of
Illinois irrespective of | ||||||
12 | the attainment status designation of such
location; but shall | ||||||
13 | not include transportation costs
of coal
(i) except to the | ||||||
14 | extent that for contracts entered into on
and after the | ||||||
15 | effective date of this amendatory Act of 1997,
the cost of the | ||||||
16 | coal, including transportation costs,
constitutes the lowest | ||||||
17 | cost for adequate and reliable fuel
supply reasonably available | ||||||
18 | to the public utility in
comparison to the cost, including | ||||||
19 | transportation costs, of
other adequate and reliable sources of | ||||||
20 | fuel supply reasonably
available to the public utility, or (ii)
| ||||||
21 | except as otherwise provided in the next 3 sentences of this | ||||||
22 | paragraph.
Such costs of fuel
shall, when requested by a | ||||||
23 | utility or at the conclusion of the utility's
next general | ||||||
24 | electric rate proceeding, whichever shall first occur, include
| ||||||
25 | transportation costs of coal purchased under existing coal | ||||||
26 | purchase
contracts. For purposes of this paragraph "existing |
| |||||||
| |||||||
1 | coal purchase
contracts" means contracts for the purchase of | ||||||
2 | coal in effect on the
effective date of this amendatory Act of | ||||||
3 | 1991, as such contracts may
thereafter be amended, but only to | ||||||
4 | the extent that any such amendment does
not increase the | ||||||
5 | aggregate quantity of coal to be purchased under such
contract.
| ||||||
6 | Nothing herein shall authorize an electric utility
to recover | ||||||
7 | through its fuel adjustment clause any amounts of
| ||||||
8 | transportation costs of coal that were included in the revenue
| ||||||
9 | requirement used to set base rates in its most recent general
| ||||||
10 | rate proceeding.
Cost shall be based upon uniformly applied | ||||||
11 | accounting
principles. Annually, the Commission shall initiate | ||||||
12 | public hearings to
determine whether the clauses reflect actual | ||||||
13 | costs of fuel, gas, power, or
coal transportation purchased to | ||||||
14 | determine whether such purchases were
prudent, and to reconcile | ||||||
15 | any amounts collected with the actual costs of
fuel, power, | ||||||
16 | gas, or coal transportation prudently purchased. In each such
| ||||||
17 | proceeding, the burden of proof shall be upon the utility to | ||||||
18 | establish the
prudence of its cost of fuel, power, gas, or coal
| ||||||
19 | transportation purchases
and costs.
The Commission shall
issue | ||||||
20 | its final order in each such annual proceeding for an
electric | ||||||
21 | utility by December 31 of the year immediately
following the | ||||||
22 | year to which the proceeding pertains, provided,
that the | ||||||
23 | Commission shall issue its final order with respect
to such | ||||||
24 | annual proceeding for the years 1996 and earlier by December | ||||||
25 | 31, 1998.
| ||||||
26 | (b) A public utility providing electric service, other than |
| |||||||
| |||||||
1 | a public utility
described in subsections (e) or (f) of this | ||||||
2 | Section, may at
any time during the mandatory transition period | ||||||
3 | file with the
Commission proposed tariff sheets that eliminate | ||||||
4 | the public
utility's fuel adjustment clause and adjust the | ||||||
5 | public
utility's base rate tariffs by the amount necessary for | ||||||
6 | the
base fuel component of the base rates to recover the public
| ||||||
7 | utility's average fuel and power supply costs per kilowatt-hour | ||||||
8 | for the 2
most recent years for which the Commission
has issued | ||||||
9 | final orders in annual proceedings pursuant to
subsection (a), | ||||||
10 | where the average fuel and power supply costs
per kilowatt-hour | ||||||
11 | shall be calculated as the sum of the public
utility's prudent | ||||||
12 | and allowable fuel and power supply costs as
found by the | ||||||
13 | Commission in the 2 proceedings divided by the
public utility's | ||||||
14 | actual jurisdictional kilowatt-hour sales for
those 2 years. | ||||||
15 | Notwithstanding any contrary or inconsistent
provisions in | ||||||
16 | Section 9-201 of this Act, in subsection (a) of
this Section or | ||||||
17 | in any rules or regulations promulgated by the
Commission | ||||||
18 | pursuant to subsection (g) of this Section, the
Commission | ||||||
19 | shall review and shall by order approve, or approve
as | ||||||
20 | modified, the proposed tariff sheets within 60 days after
the | ||||||
21 | date of the public utility's filing. The Commission may
modify | ||||||
22 | the public utility's proposed tariff sheets only to the
extent | ||||||
23 | the Commission finds necessary to achieve conformance
to the | ||||||
24 | requirements of this subsection (b). During the 5
years | ||||||
25 | following the date of the Commission's order, but in any
event | ||||||
26 | no earlier than January 1, 2007, a public utility whose
fuel |
| |||||||
| |||||||
1 | adjustment clause has been eliminated pursuant to this
| ||||||
2 | subsection shall not file proposed tariff sheets seeking, or
| ||||||
3 | otherwise petition the Commission for, reinstatement of a fuel
| ||||||
4 | adjustment clause.
| ||||||
5 | (c) Notwithstanding any contrary or inconsistent
| ||||||
6 | provisions in Section 9-201 of this Act, in subsection (a) of
| ||||||
7 | this Section or in any rules or regulations promulgated by the
| ||||||
8 | Commission pursuant to subsection (g) of this Section, a
public | ||||||
9 | utility providing electric service, other than a public utility
| ||||||
10 | described
in subsection (e) or (f) of this Section, may at any | ||||||
11 | time
during the mandatory transition period file with the
| ||||||
12 | Commission proposed tariff sheets that establish the rate per
| ||||||
13 | kilowatt-hour to be applied pursuant to the public utility's
| ||||||
14 | fuel adjustment clause at the average value for such rate
| ||||||
15 | during the preceding 24 months, provided that such average
rate | ||||||
16 | results in a credit to customers' bills, without making
any | ||||||
17 | revisions to the public utility's base rate tariffs. The
| ||||||
18 | proposed tariff sheets shall establish the fuel adjustment
rate | ||||||
19 | for a specific time period of at least 3 years but not
more | ||||||
20 | than 5 years, provided that the terms and conditions for
any | ||||||
21 | reinstatement earlier than 5 years shall be set forth in
the | ||||||
22 | proposed tariff sheets and subject to modification or
approval | ||||||
23 | by the Commission. The Commission shall review and
shall by | ||||||
24 | order approve the proposed tariff sheets if it finds
that the | ||||||
25 | requirements of this subsection are met. The
Commission shall | ||||||
26 | not conduct the annual hearings specified in the
last 3 |
| |||||||
| |||||||
1 | sentences of subsection (a) of this Section for the
utility for | ||||||
2 | the period that the factor established pursuant to
this | ||||||
3 | subsection is in effect.
| ||||||
4 | (d) A public utility providing electric service, or a | ||||||
5 | public utility
providing gas service
may file with the | ||||||
6 | Commission proposed tariff sheets that
eliminate the public | ||||||
7 | utility's fuel or purchased gas
adjustment clause and adjust | ||||||
8 | the public utility's base rate
tariffs to provide for recovery | ||||||
9 | of power supply costs or gas
supply costs that would have been | ||||||
10 | recovered through such
clause; provided, that the provisions of | ||||||
11 | this subsection (d) shall not be
available to a public utility | ||||||
12 | described in subsections (e) or (f) of this
Section to | ||||||
13 | eliminate its fuel adjustment clause. Notwithstanding any | ||||||
14 | contrary
or inconsistent
provisions in Section 9-201 of this | ||||||
15 | Act, in subsection (a) of
this Section, or in any rules or | ||||||
16 | regulations promulgated by
the Commission pursuant to | ||||||
17 | subsection (g) of this Section, the
Commission shall review and | ||||||
18 | shall by order approve, or approve
as modified in the | ||||||
19 | Commission's order, the proposed tariff
sheets within 240 days | ||||||
20 | after the date of the public utility's
filing. The Commission's | ||||||
21 | order shall approve rates and
charges that the Commission, | ||||||
22 | based on information in the
public utility's filing or on the | ||||||
23 | record if a hearing is held
by the Commission, finds will | ||||||
24 | recover the reasonable, prudent
and necessary jurisdictional | ||||||
25 | power supply costs or gas supply
costs incurred or to be | ||||||
26 | incurred by the public utility during
a 12 month period found |
| |||||||
| |||||||
1 | by the Commission to be appropriate
for these purposes, | ||||||
2 | provided, that such period shall be either
(i) a 12 month | ||||||
3 | historical period occurring during the 15
months ending on the | ||||||
4 | date of the public utility's filing, or
(ii) a 12 month future | ||||||
5 | period ending no later than 15 months
following the date of the | ||||||
6 | public utility's filing. The public
utility shall include with | ||||||
7 | its tariff filing information
showing both (1) its actual | ||||||
8 | jurisdictional power supply costs
or gas supply costs for a 12 | ||||||
9 | month historical period
conforming to (i) above and (2) its | ||||||
10 | projected jurisdictional
power supply costs or gas supply costs | ||||||
11 | for a future 12 month
period conforming to (ii) above. If the | ||||||
12 | Commission's order
requires modifications in the tariff sheets | ||||||
13 | filed by the
public utility, the public utility shall have 7 | ||||||
14 | days following
the date of the order to notify the Commission | ||||||
15 | whether the
public utility will implement the modified tariffs | ||||||
16 | or elect to
continue its fuel or purchased gas adjustment | ||||||
17 | clause in force
as though no order had been entered. The | ||||||
18 | Commission's order
shall provide for any reconciliation of | ||||||
19 | power supply costs or
gas supply costs, as the case may be, and | ||||||
20 | associated revenues
through the date that the public utility's | ||||||
21 | fuel or purchased
gas adjustment clause is eliminated. During | ||||||
22 | the 5 years
following the date of the Commission's order, a | ||||||
23 | public utility
whose fuel or purchased gas adjustment clause | ||||||
24 | has been
eliminated pursuant to this subsection shall not file | ||||||
25 | proposed
tariff sheets seeking, or otherwise petition the | ||||||
26 | Commission
for, reinstatement or adoption of a fuel or |
| |||||||
| |||||||
1 | purchased gas
adjustment clause. Nothing in this subsection (d) | ||||||
2 | shall be
construed as limiting the Commission's authority to | ||||||
3 | eliminate
a public utility's fuel adjustment clause or | ||||||
4 | purchased gas
adjustment clause in accordance with any other | ||||||
5 | applicable
provisions of this Act.
| ||||||
6 | (e) Notwithstanding any contrary or inconsistent | ||||||
7 | provisions in
Section 9-201 of this Act, in subsection (a) of | ||||||
8 | this Section, or in
any rules promulgated by the Commission | ||||||
9 | pursuant
to subsection (g) of this Section, a public utility | ||||||
10 | providing
electric service to more than 1,000,000 customers in | ||||||
11 | this State may, within the
first 6 months after the
effective | ||||||
12 | date of this amendatory Act of 1997, file with the
Commission | ||||||
13 | proposed tariff sheets that eliminate, effective
January 1, | ||||||
14 | 1997, the public utility's fuel adjustment clause
without | ||||||
15 | adjusting its base rates, and such tariff sheets shall be
| ||||||
16 | effective upon filing. To the extent the application of the | ||||||
17 | fuel
adjustment clause had resulted in net charges to customers | ||||||
18 | after
January 1, 1997, the utility shall also file a tariff | ||||||
19 | sheet that
provides for a refund stated on a per kilowatt-hour | ||||||
20 | basis of such
charges over a period not to exceed 6 months; | ||||||
21 | provided
however, that such refund shall not include the | ||||||
22 | proportional
amounts of taxes paid under the Use Tax Act, | ||||||
23 | Service Use Tax Act,
Service Occupation Tax Act, and Retailers' | ||||||
24 | Occupation Tax Act on
fuel used in generation. The Commission | ||||||
25 | shall issue an order
within 45 days after the date of the | ||||||
26 | public utility's filing
approving or approving as modified such |
| |||||||
| |||||||
1 | tariff sheet. If the fuel
adjustment clause is eliminated | ||||||
2 | pursuant to this subsection, the
Commission shall not conduct | ||||||
3 | the annual hearings specified in the
last 3 sentences of | ||||||
4 | subsection (a) of this Section for the
utility for any period | ||||||
5 | after December 31, 1996 and prior to any
reinstatement of such | ||||||
6 | clause. A public utility whose fuel
adjustment clause has been | ||||||
7 | eliminated pursuant to this subsection
shall not file a | ||||||
8 | proposed tariff sheet seeking, or otherwise
petition the | ||||||
9 | Commission for, reinstatement of the fuel adjustment
clause | ||||||
10 | prior to January 1, 2007.
| ||||||
11 | (f) Notwithstanding any contrary or inconsistent | ||||||
12 | provisions in Section
9-201 of this Act, in subsection (a) of | ||||||
13 | this Section, or in any rules or
regulations promulgated by the | ||||||
14 | Commission pursuant to subsection (g) of this
Section, a public | ||||||
15 | utility providing electric service to more than 500,000
| ||||||
16 | customers but fewer than 1,000,000 customers in this State may, | ||||||
17 | within the
first
6 months after the effective date of this | ||||||
18 | amendatory Act of 1997, file with the
Commission proposed | ||||||
19 | tariff sheets that eliminate, effective January 1, 1997,
the | ||||||
20 | public utility's fuel adjustment clause and adjust its base | ||||||
21 | rates by the
amount necessary for the base fuel component of | ||||||
22 | the base rates to recover
91% of the public utility's average | ||||||
23 | fuel and power supply costs for the 2 most
recent years for | ||||||
24 | which the Commission, as of January 1, 1997, has issued final
| ||||||
25 | orders in annual proceedings pursuant to subsection (a), where | ||||||
26 | the average fuel
and power supply costs per kilowatt-hour shall |
| |||||||
| |||||||
1 | be calculated as the sum of the
public utility's prudent and | ||||||
2 | allowable fuel and power supply costs as found by
the | ||||||
3 | Commission in the 2 proceedings divided by the public utility's | ||||||
4 | actual
jurisdictional kilowatt-hour sales for those 2 years, | ||||||
5 | provided, that such
tariff sheets shall be effective upon | ||||||
6 | filing. To the extent the application of
the fuel adjustment | ||||||
7 | clause had resulted in net charges to customers after
January | ||||||
8 | 1, 1997, the utility shall also file a tariff sheet that | ||||||
9 | provides for a
refund stated on a per kilowatt-hour basis of | ||||||
10 | such charges over a period not to
exceed 6 months. Provided | ||||||
11 | however, that such refund shall not include the
proportional | ||||||
12 | amounts of taxes paid under the Use Tax Act, Service Use Tax | ||||||
13 | Act,
Service Occupation Tax Act, and Retailers' Occupation Tax | ||||||
14 | Act on fuel used in
generation. The Commission shall issue an | ||||||
15 | order within 45 days after the date
of the public utility's | ||||||
16 | filing approving or approving as modified such tariff
sheet. If | ||||||
17 | the fuel adjustment clause is eliminated pursuant to this
| ||||||
18 | subsection, the Commission shall not conduct the annual | ||||||
19 | hearings specified in
the last 3 sentences of subsection (a) of | ||||||
20 | this Section for the utility for any
period after December 31, | ||||||
21 | 1996 and prior to any reinstatement of such clause.
A public | ||||||
22 | utility whose fuel adjustment clause has been eliminated | ||||||
23 | pursuant to
this subsection shall not file a proposed tariff | ||||||
24 | sheet seeking, or otherwise
petition the Commission for, | ||||||
25 | reinstatement of the fuel adjustment clause prior
to January 1, | ||||||
26 | 2007.
|
| |||||||
| |||||||
1 | (g) The Commission shall have authority to promulgate rules | ||||||
2 | and
regulations to
carry out the provisions of this Section.
| ||||||
3 | (h) Any gas utility may enter into a contract for up to 20 | ||||||
4 | years of supply with any company for the purchase of substitute | ||||||
5 | natural gas (SNG) produced from coal through the gasification | ||||||
6 | process if the company has commenced construction of a coal | ||||||
7 | gasification facility by July 1, 2010. The cost for the SNG is | ||||||
8 | reasonable and prudent and recoverable through the purchased | ||||||
9 | gas adjustment clause for years one through 10 of the contract | ||||||
10 | if: (i) the only coal used in the gasification process has high | ||||||
11 | volatile bituminous rank and greater than 1.7 pounds of sulfur | ||||||
12 | per million Btu content; (ii) at the time the contract term | ||||||
13 | commences, the price per million Btu does not exceed $7.95 in | ||||||
14 | 2008 dollars, adjusted annually based on the change in the | ||||||
15 | Annual Consumer Price Index for All Urban Consumers for the | ||||||
16 | Midwest Region as published in April by the United States | ||||||
17 | Department of Labor, Bureau of Labor Statistics (or a suitable | ||||||
18 | Consumer Price Index calculation if this Consumer Price Index | ||||||
19 | is not available) for the previous calendar year; provided that | ||||||
20 | the price per million Btu shall not exceed $9.95 at any time | ||||||
21 | during the contract; (iii) the utility's aggregate long-term | ||||||
22 | supply contracts for the purchase of SNG does not exceed 25% of | ||||||
23 | the annual system supply requirements of the utility at the | ||||||
24 | time the contract is entered into and the quantity of SNG | ||||||
25 | supplied to a utility by any one producer may not exceed 20 | ||||||
26 | billion cubic feet per year; and (iv) the contract is entered |
| |||||||
| |||||||
1 | into within 120 days after the effective date of this | ||||||
2 | amendatory Act of the 95th General Assembly and terminates no | ||||||
3 | more than 20 years after the commencement of the commercial | ||||||
4 | production of SNG at the facility. Contracts greater than 10 | ||||||
5 | years shall provide that if, at any time during supply years 11 | ||||||
6 | through 20 of the contract, the Commission determines that the | ||||||
7 | cost for the synthetic natural gas purchased under the contract | ||||||
8 | during supply years 11 through 20 is not reasonable and | ||||||
9 | prudent, then the company shall reimburse the utility for the | ||||||
10 | difference between the cost deemed reasonable and prudent by | ||||||
11 | the Commission and the cost imposed under the contract. All | ||||||
12 | such contracts, regardless of duration, shall require the owner | ||||||
13 | of any facility supplying SNG under the contract to provide | ||||||
14 | documentation to the Commission each year, starting in the | ||||||
15 | facility's first year of commercial operation, accurately | ||||||
16 | reporting the quantity of carbon dioxide emissions from the | ||||||
17 | facility that have been captured and sequestered and reporting | ||||||
18 | any quantities of carbon dioxide released from the site or | ||||||
19 | sites at which carbon dioxide emissions were sequestered in | ||||||
20 | prior years, based on continuous monitoring of those sites. If, | ||||||
21 | in any year, the owner of the facility fails to demonstrate | ||||||
22 | that the SNG facility captured and sequestered at least 90% of | ||||||
23 | the total carbon dioxide emissions that the facility would | ||||||
24 | otherwise emit or that sequestration of emissions from prior | ||||||
25 | years has failed, resulting in the release of carbon dioxide | ||||||
26 | into the atmosphere, then the owner of the facility must offset |
| |||||||
| |||||||
1 | excess emissions. Any such carbon dioxide offsets must be | ||||||
2 | permanent, additional, verifiable, real, located within the | ||||||
3 | State of Illinois, and legally and practicably enforceable. The | ||||||
4 | costs of such offsets shall not exceed $40 million in any given | ||||||
5 | year. No costs of any purchases of carbon offsets may be | ||||||
6 | recovered from a utility or its customers. All carbon offsets | ||||||
7 | purchased for this purpose must be permanently retired. In | ||||||
8 | addition, carbon dioxide emission credits equivalent to 50% of | ||||||
9 | the amount of credits associated with the required | ||||||
10 | sequestration of carbon dioxide from the facility must be | ||||||
11 | permanently retired. Compliance with the sequestration | ||||||
12 | requirements and the offset purchase requirements specified in | ||||||
13 | this subsection (h) shall be assessed annually by an | ||||||
14 | independent expert retained by the owner of the SNG facility, | ||||||
15 | with the advance written approval of the Attorney General. An | ||||||
16 | SNG facility operating pursuant to this subsection (h) shall | ||||||
17 | not forfeit its designation as a clean coal SNG facility if the | ||||||
18 | facility fails to fully comply with the applicable carbon | ||||||
19 | sequestration requirements in any given year, provided the | ||||||
20 | requisite offsets are purchased. However, the Attorney | ||||||
21 | General, on behalf of the People of the State of Illinois, may | ||||||
22 | specifically enforce the facility's sequestration | ||||||
23 | requirements. Except for an initial clean coal facility, as | ||||||
24 | that term is used in item (3) of subsection (d) of Section 1-75 | ||||||
25 | of the Illinois Power Agency Act, an energy facility and a gas | ||||||
26 | facility may enter into a 20-year supply contract, with a |
| |||||||
| |||||||
1 | company that has commenced construction of a coal gasification | ||||||
2 | facility after July 1, 2010, that shall not be subject to any | ||||||
3 | subsequent prudency review by the Commission if the contract | ||||||
4 | was found prudent at the time the contract was agreed upon by | ||||||
5 | the parties. | ||||||
6 | (i) If a gas utility or an affiliate of a gas utility has | ||||||
7 | an ownership interest in any entity that produces or sells | ||||||
8 | synthetic natural gas, Article VII of this Act shall apply.
| ||||||
9 | (Source: P.A. 94-63, eff. 6-21-05; 95-1027, eff. 6-1-09.)
| ||||||
10 | Article 15. | ||||||
11 | Section 15-4. The Illinois Enterprise Zone Act is amended | ||||||
12 | by changing Section 5.5 as follows:
| ||||||
13 | (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
| ||||||
14 | Sec. 5.5. High Impact Business.
| ||||||
15 | (a) In order to respond to unique opportunities to assist | ||||||
16 | in the
encouragement, development, growth and expansion of the | ||||||
17 | private sector through
large scale investment and development | ||||||
18 | projects, the Department is authorized
to receive and approve | ||||||
19 | applications for the designation of "High Impact
Businesses" in | ||||||
20 | Illinois subject to the following conditions:
| ||||||
21 | (1) such applications may be submitted at any time | ||||||
22 | during the year;
| ||||||
23 | (2) such business is not located, at the time of |
| |||||||
| |||||||
1 | designation, in
an enterprise zone designated pursuant to | ||||||
2 | this Act;
| ||||||
3 | (3) the business intends to do one or more of the | ||||||
4 | following:
| ||||||
5 | (A) the business intends to make a minimum | ||||||
6 | investment of
$12,000,000 which will be placed in | ||||||
7 | service in qualified property and
intends to create 500 | ||||||
8 | full-time equivalent jobs at a designated location
in | ||||||
9 | Illinois or intends to make a minimum investment of | ||||||
10 | $30,000,000 which
will be placed in service in | ||||||
11 | qualified property and intends to retain 1,500
| ||||||
12 | full-time jobs at a designated location in Illinois.
| ||||||
13 | The business must certify in writing that the | ||||||
14 | investments would not be
placed in service in qualified | ||||||
15 | property and the job creation or job
retention would | ||||||
16 | not occur without the tax credits and exemptions set | ||||||
17 | forth
in subsection (b) of this Section. The terms | ||||||
18 | "placed in service" and
"qualified property" have the | ||||||
19 | same meanings as described in subsection (h)
of Section | ||||||
20 | 201 of the Illinois Income Tax Act; or
| ||||||
21 | (B) the business intends to establish a new | ||||||
22 | electric generating
facility at a designated location | ||||||
23 | in Illinois. "New electric generating
facility", for | ||||||
24 | purposes of this Section, means a newly-constructed
| ||||||
25 | electric
generation plant
or a newly-constructed | ||||||
26 | generation capacity expansion at an existing electric
|
| |||||||
| |||||||
1 | generation
plant, including the transmission lines and | ||||||
2 | associated
equipment that transfers electricity from | ||||||
3 | points of supply to points of
delivery, and for which | ||||||
4 | such new foundation construction commenced not sooner
| ||||||
5 | than July 1,
2001. Such facility shall be designed to | ||||||
6 | provide baseload electric
generation and shall operate | ||||||
7 | on a continuous basis throughout the year;
and (i) | ||||||
8 | shall have an aggregate rated generating capacity of at | ||||||
9 | least 1,000
megawatts for all new units at one site if | ||||||
10 | it uses natural gas as its primary
fuel and foundation | ||||||
11 | construction of the facility is commenced on
or before | ||||||
12 | December 31, 2004, or shall have an aggregate rated | ||||||
13 | generating
capacity of at least 400 megawatts for all | ||||||
14 | new units at one site if it uses
coal or gases derived | ||||||
15 | from coal
as its primary fuel and
shall support the | ||||||
16 | creation of at least 150 new Illinois coal mining jobs, | ||||||
17 | or
(ii) shall be funded through a federal Department of | ||||||
18 | Energy grant before December 31, 2010 and shall support | ||||||
19 | the creation of Illinois
coal-mining
jobs, or (iii) | ||||||
20 | shall use coal gasification or integrated | ||||||
21 | gasification-combined cycle units
that generate
| ||||||
22 | electricity or chemicals, or both, and shall support | ||||||
23 | the creation of Illinois
coal-mining
jobs.
The
| ||||||
24 | business must certify in writing that the investments | ||||||
25 | necessary to establish
a new electric generating | ||||||
26 | facility would not be placed in service and the
job |
| |||||||
| |||||||
1 | creation in the case of a coal-fueled plant
would not | ||||||
2 | occur without the tax credits and exemptions set forth | ||||||
3 | in
subsection (b-5) of this Section. The term "placed | ||||||
4 | in service" has
the same meaning as described in | ||||||
5 | subsection
(h) of Section 201 of the Illinois Income | ||||||
6 | Tax Act; or
| ||||||
7 | (B-5) the business intends to establish a new | ||||||
8 | gasification
facility at a designated location in | ||||||
9 | Illinois. As used in this Section, "new gasification | ||||||
10 | facility" means a newly constructed coal gasification | ||||||
11 | facility that generates chemical feedstocks or | ||||||
12 | transportation fuels derived from coal (which may | ||||||
13 | include, but are not limited to, methane, methanol, and | ||||||
14 | nitrogen fertilizer), that supports the creation or | ||||||
15 | retention of Illinois coal-mining jobs , and that | ||||||
16 | qualifies for financial assistance from the Department | ||||||
17 | before December 31, 2010 . A new gasification facility | ||||||
18 | does not include a pilot project located within | ||||||
19 | Jefferson County or within a county adjacent to | ||||||
20 | Jefferson County for synthetic natural gas from coal; | ||||||
21 | or
| ||||||
22 | (C) the business intends to establish
production | ||||||
23 | operations at a new coal mine, re-establish production | ||||||
24 | operations at
a closed coal mine, or expand production | ||||||
25 | at an existing coal mine
at a designated location in | ||||||
26 | Illinois not sooner than July 1, 2001;
provided that |
| |||||||
| |||||||
1 | the
production operations result in the creation of 150 | ||||||
2 | new Illinois coal mining
jobs as described in | ||||||
3 | subdivision (a)(3)(B) of this Section, and further
| ||||||
4 | provided that the coal extracted from such mine is | ||||||
5 | utilized as the predominant
source for a new electric | ||||||
6 | generating facility.
The business must certify in | ||||||
7 | writing that the
investments necessary to establish a | ||||||
8 | new, expanded, or reopened coal mine would
not
be | ||||||
9 | placed in service and the job creation would not
occur | ||||||
10 | without the tax credits and exemptions set forth in | ||||||
11 | subsection (b-5) of
this Section. The term "placed in | ||||||
12 | service" has
the same meaning as described in | ||||||
13 | subsection (h) of Section 201 of the
Illinois Income | ||||||
14 | Tax Act; or
| ||||||
15 | (D) the business intends to construct new | ||||||
16 | transmission facilities or
upgrade existing | ||||||
17 | transmission facilities at designated locations in | ||||||
18 | Illinois,
for which construction commenced not sooner | ||||||
19 | than July 1, 2001. For the
purposes of this Section, | ||||||
20 | "transmission facilities" means transmission lines
| ||||||
21 | with a voltage rating of 115 kilovolts or above, | ||||||
22 | including associated
equipment, that transfer | ||||||
23 | electricity from points of supply to points of
delivery | ||||||
24 | and that transmit a majority of the electricity | ||||||
25 | generated by a new
electric generating facility | ||||||
26 | designated as a High Impact Business in accordance
with |
| |||||||
| |||||||
1 | this Section. The business must certify in writing that | ||||||
2 | the investments
necessary to construct new | ||||||
3 | transmission facilities or upgrade existing
| ||||||
4 | transmission facilities would not be placed in service
| ||||||
5 | without the tax credits and exemptions set forth in | ||||||
6 | subsection (b-5) of this
Section. The term "placed in | ||||||
7 | service" has the
same meaning as described in | ||||||
8 | subsection (h) of Section 201 of the Illinois
Income | ||||||
9 | Tax Act; and
| ||||||
10 | (4) no later than 90 days after an application is | ||||||
11 | submitted, the
Department shall notify the applicant of the | ||||||
12 | Department's determination of
the qualification of the | ||||||
13 | proposed High Impact Business under this Section.
| ||||||
14 | (b) Businesses designated as High Impact Businesses | ||||||
15 | pursuant to
subdivision (a)(3)(A) of this Section shall qualify | ||||||
16 | for the credits and
exemptions described in the
following Acts: | ||||||
17 | Section 9-222 and Section 9-222.1A of the Public Utilities
Act,
| ||||||
18 | subsection (h)
of Section 201 of the Illinois Income Tax Act,
| ||||||
19 | and Section 1d of
the
Retailers' Occupation Tax Act; provided | ||||||
20 | that these credits and
exemptions
described in these Acts shall | ||||||
21 | not be authorized until the minimum
investments set forth in | ||||||
22 | subdivision (a)(3)(A) of this
Section have been placed in
| ||||||
23 | service in qualified properties and, in the case of the | ||||||
24 | exemptions
described in the Public Utilities Act and Section 1d | ||||||
25 | of the Retailers'
Occupation Tax Act, the minimum full-time | ||||||
26 | equivalent jobs or full-time jobs set
forth in subdivision |
| |||||||
| |||||||
1 | (a)(3)(A) of this Section have been
created or retained.
| ||||||
2 | Businesses designated as High Impact Businesses under
this | ||||||
3 | Section shall also
qualify for the exemption described in | ||||||
4 | Section 5l of the Retailers' Occupation
Tax Act. The credit | ||||||
5 | provided in subsection (h) of Section 201 of the Illinois
| ||||||
6 | Income Tax Act shall be applicable to investments in qualified | ||||||
7 | property as set
forth in subdivision (a)(3)(A) of this Section.
| ||||||
8 | (b-5) Businesses designated as High Impact Businesses | ||||||
9 | pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), | ||||||
10 | and (a)(3)(D) of this Section shall qualify
for the credits and | ||||||
11 | exemptions described in the following Acts: Section 51 of
the | ||||||
12 | Retailers' Occupation Tax Act, Section 9-222 and Section | ||||||
13 | 9-222.1A of the
Public Utilities Act, and subsection (h) of | ||||||
14 | Section 201 of the Illinois Income
Tax Act; however, the | ||||||
15 | credits and exemptions authorized under Section 9-222 and
| ||||||
16 | Section 9-222.1A of the Public Utilities Act, and subsection | ||||||
17 | (h) of Section 201
of the Illinois Income Tax Act shall not be | ||||||
18 | authorized until the new electric
generating facility, the new | ||||||
19 | gasification facility, the new transmission facility, or the | ||||||
20 | new, expanded, or
reopened coal mine is operational,
except | ||||||
21 | that a new electric generating facility whose primary fuel | ||||||
22 | source is
natural gas is eligible only for the exemption under | ||||||
23 | Section 5l of the
Retailers' Occupation Tax Act.
| ||||||
24 | (c) High Impact Businesses located in federally designated | ||||||
25 | foreign trade
zones or sub-zones are also eligible for | ||||||
26 | additional credits, exemptions and
deductions as described in |
| |||||||
| |||||||
1 | the following Acts: Section 9-221 and Section
9-222.1 of the | ||||||
2 | Public
Utilities Act; and subsection (g) of Section 201, and | ||||||
3 | Section 203
of the Illinois Income Tax Act.
| ||||||
4 | (d) Existing Illinois businesses which apply for | ||||||
5 | designation as a
High Impact Business must provide the | ||||||
6 | Department with the prospective plan
for which 1,500 full-time | ||||||
7 | jobs would be eliminated in the event that the
business is not | ||||||
8 | designated.
| ||||||
9 | (e) New proposed facilities which apply for designation as | ||||||
10 | High Impact
Business must provide the Department with proof of | ||||||
11 | alternative non-Illinois
sites which would receive the | ||||||
12 | proposed investment and job creation in the
event that the | ||||||
13 | business is not designated as a High Impact Business.
| ||||||
14 | (f) In the event that a business is designated a High | ||||||
15 | Impact Business
and it is later determined after reasonable | ||||||
16 | notice and an opportunity for a
hearing as provided under the | ||||||
17 | Illinois Administrative Procedure Act, that
the business would | ||||||
18 | have placed in service in qualified property the
investments | ||||||
19 | and created or retained the requisite number of jobs without
| ||||||
20 | the benefits of the High Impact Business designation, the | ||||||
21 | Department shall
be required to immediately revoke the | ||||||
22 | designation and notify the Director
of the Department of | ||||||
23 | Revenue who shall begin proceedings to recover all
wrongfully | ||||||
24 | exempted State taxes with interest. The business shall also be
| ||||||
25 | ineligible for all State funded Department programs for a | ||||||
26 | period of 10 years.
|
| |||||||
| |||||||
1 | (g) The Department shall revoke a High Impact Business | ||||||
2 | designation if
the participating business fails to comply with | ||||||
3 | the terms and conditions of
the designation.
| ||||||
4 | (h) Prior to designating a business, the Department shall | ||||||
5 | provide the
members of the General Assembly and Commission on | ||||||
6 | Government Forecasting and Accountability
with a report | ||||||
7 | setting forth the terms and conditions of the designation and
| ||||||
8 | guarantees that have been received by the Department in | ||||||
9 | relation to the
proposed business being designated.
| ||||||
10 | (Source: P.A. 94-65, eff. 6-21-05; 95-18, eff. 7-30-07.)
| ||||||
11 | Section 15-5. The Department of Natural Resources | ||||||
12 | (Conservation) Law of the
Civil Administrative Code of Illinois | ||||||
13 | is amended by changing Section 805-15 as follows:
| ||||||
14 | (20 ILCS 805/805-15) (was 20 ILCS 805/63a37)
| ||||||
15 | Sec. 805-15. Rules and regulations . | ||||||
16 | (a) The Department has the power
to adopt and enforce rules | ||||||
17 | and regulations necessary to
the performance of its statutory | ||||||
18 | duties. | ||||||
19 | (b) These rules must include a process for expediting the | ||||||
20 | issuance of permits and licenses for projects at energy | ||||||
21 | facilities that are subject to regulation by the Department as | ||||||
22 | of January 1, 2009, as that term is defined in Section 1-10 of | ||||||
23 | the Illinois Power Agency Act. The Department may engage the | ||||||
24 | experts and additional resources that are reasonably necessary |
| |||||||
| |||||||
1 | for implementing this process. An applicant must request the | ||||||
2 | use of an expedited process, and any additional costs for using | ||||||
3 | that process shall be borne by the applicant.
| ||||||
4 | (Source: P.A. 91-239, eff. 1-1-00.)
| ||||||
5 | Section 15-10. The Department of Transportation Law of the
| ||||||
6 | Civil Administrative Code of Illinois is amended by adding | ||||||
7 | Section 2705-20 as follows: | ||||||
8 | (20 ILCS 2705/2705-20 new)
| ||||||
9 | Sec. 2705-20. Administrative rules. | ||||||
10 | (a) The Department has the power
to adopt and enforce rules | ||||||
11 | necessary to
the performance of its statutory duties. | ||||||
12 | (b) These rules must include a process for expediting the | ||||||
13 | issuance of permits and licenses for projects at energy | ||||||
14 | facilities that are subject to regulation by the Department as | ||||||
15 | of January 1, 2009, as that term is defined in the Illinois | ||||||
16 | Power Agency Act. The Department may engage the experts and | ||||||
17 | additional resources that are reasonably necessary for | ||||||
18 | implementing this process. An applicant must request the use of | ||||||
19 | an expedited process, and any additional costs for using that | ||||||
20 | process shall be borne by the applicant.
| ||||||
21 | Section 15-15. The State Fire Marshal Act is amended by | ||||||
22 | changing Section 2 as follows:
|
| |||||||
| |||||||
1 | (20 ILCS 2905/2) (from Ch. 127 1/2, par. 2)
| ||||||
2 | Sec. 2. The Office shall have the following powers and | ||||||
3 | duties:
| ||||||
4 | 1. To exercise the rights, powers and duties which have | ||||||
5 | been vested
by law in the Department of State Police as the | ||||||
6 | successor of the
Department of Public Safety, State Fire | ||||||
7 | Marshal, inspectors, officers and employees of the State | ||||||
8 | Fire Marshal,
including arson investigation. Arson | ||||||
9 | investigations conducted by the State Fire Marshal's | ||||||
10 | Office shall be conducted by State Fire Marshal Arson | ||||||
11 | Investigator Special Agents, who shall be peace officers as | ||||||
12 | provided in the Peace Officer Fire Investigation Act.
| ||||||
13 | 2. To keep a record, as may be required by law, of all | ||||||
14 | fires
occurring in the State, together with all facts, | ||||||
15 | statistics and
circumstances, including the origin of | ||||||
16 | fires.
| ||||||
17 | 3. To exercise the rights, powers and duties which have | ||||||
18 | been vested
in the Department of State Police by the | ||||||
19 | "Boiler and Pressure Vessel
Safety Act", approved August 7, | ||||||
20 | 1951, as amended.
| ||||||
21 | 4. To administer the Illinois Fire Protection Training | ||||||
22 | Act.
| ||||||
23 | 5. To aid in the establishment and maintenance of the | ||||||
24 | training facilities
and programs of the Illinois Fire | ||||||
25 | Service Institute.
| ||||||
26 | 6. To disburse Federal grants for fire protection |
| |||||||
| |||||||
1 | purposes to units of
local government.
| ||||||
2 | 7. To pay to or in behalf of the City of Chicago for | ||||||
3 | the maintenance,
expenses, facilities and structures | ||||||
4 | directly incident to the Chicago Fire
Department training | ||||||
5 | program. Such payments may be made either as
reimbursements | ||||||
6 | for expenditures previously made by the City, or as | ||||||
7 | payments at the time
the City has incurred an obligation | ||||||
8 | which is then due and payable for such
expenditures. | ||||||
9 | Payments for the Chicago Fire Department training program
| ||||||
10 | shall be made only for those expenditures which are not | ||||||
11 | claimable by the
City under "An Act relating to fire | ||||||
12 | protection training", certified November
9, 1971, as | ||||||
13 | amended.
| ||||||
14 | 8. To administer General Revenue Fund grants to areas | ||||||
15 | not located in a
fire protection district or in a | ||||||
16 | municipality which provides fire
protection services, to | ||||||
17 | defray
the organizational expenses of forming a fire | ||||||
18 | protection district.
| ||||||
19 | 9. In cooperation with the Illinois Environmental | ||||||
20 | Protection Agency,
to administer the Illinois Leaking | ||||||
21 | Underground Storage Tank program in
accordance with | ||||||
22 | Section 4 of this Act and Section 22.12 of the
| ||||||
23 | Environmental Protection Act.
| ||||||
24 | 10. To expend state and federal funds as appropriated | ||||||
25 | by the General Assembly.
| ||||||
26 | 11. To provide technical assistance, to areas not |
| |||||||
| |||||||
1 | located in a fire
protection district or in a municipality | ||||||
2 | which provides fire protection
service, to form a fire | ||||||
3 | protection district, to join an existing district,
or to | ||||||
4 | establish a municipal fire department, whichever is | ||||||
5 | applicable.
| ||||||
6 | 12. To exercise such other powers and duties as may be
| ||||||
7 | vested in the Office by law.
| ||||||
8 | 13. To adopt rules for the purpose of creating a | ||||||
9 | process for expediting the issuance of permits and licenses | ||||||
10 | for projects at energy facilities, as that term is defined | ||||||
11 | in the Illinois Power Agency Act. The Office may engage the | ||||||
12 | experts and additional resources that are reasonably | ||||||
13 | necessary for implementing this process. An applicant must | ||||||
14 | request the use of an expedited process, and any additional | ||||||
15 | costs for using that process shall be borne by the | ||||||
16 | applicant.
| ||||||
17 | (Source: P.A. 94-178, eff. 1-1-06; 95-502, eff. 8-28-07.)
| ||||||
18 | Section 15-20. The Illinois Income Tax Act is amended by | ||||||
19 | adding Section 218 as follows: | ||||||
20 | (35 ILCS 5/218 new) | ||||||
21 | Sec. 218. Tax credit for equipment used at an energy | ||||||
22 | facility. For taxable years ending on or after December 31, | ||||||
23 | 2009, each corporation subject to this Act
shall
be entitled to | ||||||
24 | a credit against the tax imposed by subsections (a) and (b)
of |
| |||||||
| |||||||
1 | Section 201 of this Act in an amount equal to 10% of the amount | ||||||
2 | spent during the
taxable year by the corporation on equipment | ||||||
3 | purchased for use at an energy facility, as that term is | ||||||
4 | defined in Section 1-10 of the Illinois Power Agency Act. For | ||||||
5 | purposes of this credit, the amount spent on
the equipment | ||||||
6 | shall be defined as the basis of the equipment used to
compute | ||||||
7 | the depreciation deduction for federal income tax purposes. | ||||||
8 | The credit shall be
allowed for the taxable year in which | ||||||
9 | the equipment
purchased is placed in service, or, if
the amount | ||||||
10 | of the credit exceeds the tax liability for that year, whether
| ||||||
11 | it exceeds the original liability or the liability as later | ||||||
12 | amended, the
excess may be carried forward and applied to the | ||||||
13 | tax liability of the 10
taxable years following the excess | ||||||
14 | credit years. The credit shall be
applied to the earliest year | ||||||
15 | for which there is a liability. If there is
credit from more | ||||||
16 | than one taxable year that is available to offset a liability,
| ||||||
17 | the earlier credit shall be applied first. This Section is | ||||||
18 | exempt from the provisions of Section 250 of this Act. | ||||||
19 | Section 15-25. The Use Tax Act is amended by changing | ||||||
20 | Section 3-5 as follows:
| ||||||
21 | (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
| ||||||
22 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
23 | personal property
is exempt from the tax imposed by this Act:
| ||||||
24 | (1) Personal property purchased from a corporation, |
| |||||||
| |||||||
1 | society, association,
foundation, institution, or | ||||||
2 | organization, other than a limited liability
company, that is | ||||||
3 | organized and operated as a not-for-profit service enterprise
| ||||||
4 | for the benefit of persons 65 years of age or older if the | ||||||
5 | personal property
was not purchased by the enterprise for the | ||||||
6 | purpose of resale by the
enterprise.
| ||||||
7 | (2) Personal property purchased by a not-for-profit | ||||||
8 | Illinois county
fair association for use in conducting, | ||||||
9 | operating, or promoting the
county fair.
| ||||||
10 | (3) Personal property purchased by a not-for-profit
arts or | ||||||
11 | cultural organization that establishes, by proof required by | ||||||
12 | the
Department by
rule, that it has received an exemption under | ||||||
13 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
14 | organized and operated primarily for the
presentation
or | ||||||
15 | support of arts or cultural programming, activities, or | ||||||
16 | services. These
organizations include, but are not limited to, | ||||||
17 | music and dramatic arts
organizations such as symphony | ||||||
18 | orchestras and theatrical groups, arts and
cultural service | ||||||
19 | organizations, local arts councils, visual arts organizations,
| ||||||
20 | and media arts organizations.
On and after the effective date | ||||||
21 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
22 | an entity otherwise eligible for this exemption shall not
make | ||||||
23 | tax-free purchases unless it has an active identification | ||||||
24 | number issued by
the Department.
| ||||||
25 | (4) Personal property purchased by a governmental body, by | ||||||
26 | a
corporation, society, association, foundation, or |
| |||||||
| |||||||
1 | institution organized and
operated exclusively for charitable, | ||||||
2 | religious, or educational purposes, or
by a not-for-profit | ||||||
3 | corporation, society, association, foundation,
institution, or | ||||||
4 | organization that has no compensated officers or employees
and | ||||||
5 | that is organized and operated primarily for the recreation of | ||||||
6 | persons
55 years of age or older. A limited liability company | ||||||
7 | may qualify for the
exemption under this paragraph only if the | ||||||
8 | limited liability company is
organized and operated | ||||||
9 | exclusively for educational purposes. On and after July
1, | ||||||
10 | 1987, however, no entity otherwise eligible for this exemption | ||||||
11 | shall make
tax-free purchases unless it has an active exemption | ||||||
12 | identification number
issued by the Department.
| ||||||
13 | (5) Until July 1, 2003, a passenger car that is a | ||||||
14 | replacement vehicle to
the extent that the
purchase price of | ||||||
15 | the car is subject to the Replacement Vehicle Tax.
| ||||||
16 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
17 | 2004, graphic arts machinery and equipment, including
repair | ||||||
18 | and replacement
parts, both new and used, and including that | ||||||
19 | manufactured on special order,
certified by the purchaser to be | ||||||
20 | used primarily for graphic arts production,
and including | ||||||
21 | machinery and equipment purchased for lease.
Equipment | ||||||
22 | includes chemicals or chemicals acting as catalysts but only if
| ||||||
23 | the
chemicals or chemicals acting as catalysts effect a direct | ||||||
24 | and immediate change
upon a graphic arts product.
| ||||||
25 | (7) Farm chemicals.
| ||||||
26 | (8) Legal tender, currency, medallions, or gold or silver |
| |||||||
| |||||||
1 | coinage issued by
the State of Illinois, the government of the | ||||||
2 | United States of America, or the
government of any foreign | ||||||
3 | country, and bullion.
| ||||||
4 | (9) Personal property purchased from a teacher-sponsored | ||||||
5 | student
organization affiliated with an elementary or | ||||||
6 | secondary school located in
Illinois.
| ||||||
7 | (10) A motor vehicle of the first division, a motor vehicle | ||||||
8 | of the
second division that is a self-contained motor vehicle | ||||||
9 | designed or
permanently converted to provide living quarters | ||||||
10 | for recreational, camping,
or travel use, with direct walk | ||||||
11 | through to the living quarters from the
driver's seat, or a | ||||||
12 | motor vehicle of the second division that is of the
van | ||||||
13 | configuration designed for the transportation of not less than | ||||||
14 | 7 nor
more than 16 passengers, as defined in Section 1-146 of | ||||||
15 | the Illinois
Vehicle Code, that is used for automobile renting, | ||||||
16 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
17 | Act.
| ||||||
18 | (11) Farm machinery and equipment, both new and used,
| ||||||
19 | including that manufactured on special order, certified by the | ||||||
20 | purchaser
to be used primarily for production agriculture or | ||||||
21 | State or federal
agricultural programs, including individual | ||||||
22 | replacement parts for
the machinery and equipment, including | ||||||
23 | machinery and equipment
purchased
for lease,
and including | ||||||
24 | implements of husbandry defined in Section 1-130 of
the | ||||||
25 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
26 | chemical and
fertilizer spreaders, and nurse wagons required to |
| |||||||
| |||||||
1 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
2 | but excluding other motor
vehicles required to be
registered | ||||||
3 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
4 | hoop houses used for propagating, growing, or
overwintering | ||||||
5 | plants shall be considered farm machinery and equipment under
| ||||||
6 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
7 | boxes shall include units sold
separately from a motor vehicle | ||||||
8 | required to be licensed and units sold mounted
on a motor | ||||||
9 | vehicle required to be licensed if the selling price of the | ||||||
10 | tender
is separately stated.
| ||||||
11 | Farm machinery and equipment shall include precision | ||||||
12 | farming equipment
that is
installed or purchased to be | ||||||
13 | installed on farm machinery and equipment
including, but not | ||||||
14 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
15 | or spreaders.
Precision farming equipment includes, but is not | ||||||
16 | limited to, soil testing
sensors, computers, monitors, | ||||||
17 | software, global positioning
and mapping systems, and other | ||||||
18 | such equipment.
| ||||||
19 | Farm machinery and equipment also includes computers, | ||||||
20 | sensors, software, and
related equipment used primarily in the
| ||||||
21 | computer-assisted operation of production agriculture | ||||||
22 | facilities, equipment,
and
activities such as, but not limited | ||||||
23 | to,
the collection, monitoring, and correlation of
animal and | ||||||
24 | crop data for the purpose of
formulating animal diets and | ||||||
25 | agricultural chemicals. This item (11) is exempt
from the | ||||||
26 | provisions of
Section 3-90.
|
| |||||||
| |||||||
1 | (12) Fuel and petroleum products sold to or used by an air | ||||||
2 | common
carrier, certified by the carrier to be used for | ||||||
3 | consumption, shipment, or
storage in the conduct of its | ||||||
4 | business as an air common carrier, for a
flight destined for or | ||||||
5 | returning from a location or locations
outside the United | ||||||
6 | States without regard to previous or subsequent domestic
| ||||||
7 | stopovers.
| ||||||
8 | (13) Proceeds of mandatory service charges separately
| ||||||
9 | stated on customers' bills for the purchase and consumption of | ||||||
10 | food and
beverages purchased at retail from a retailer, to the | ||||||
11 | extent that the proceeds
of the service charge are in fact | ||||||
12 | turned over as tips or as a substitute
for tips to the | ||||||
13 | employees who participate directly in preparing, serving,
| ||||||
14 | hosting or cleaning up the food or beverage function with | ||||||
15 | respect to which
the service charge is imposed.
| ||||||
16 | (14) Until July 1, 2003, and beginning again on the | ||||||
17 | effective date of this amendatory Act of the 96th General | ||||||
18 | Assembly and thereafter, oil field exploration, drilling, and | ||||||
19 | production
equipment,
including (i) rigs and parts of rigs, | ||||||
20 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
21 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
22 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
23 | individual replacement part for oil
field exploration, | ||||||
24 | drilling, and production equipment, and (vi) machinery and
| ||||||
25 | equipment purchased
for lease; but excluding motor vehicles | ||||||
26 | required to be registered under the
Illinois Vehicle Code.
|
| |||||||
| |||||||
1 | (15) Photoprocessing machinery and equipment, including | ||||||
2 | repair and
replacement parts, both new and used, including that
| ||||||
3 | manufactured on special order, certified by the purchaser to be | ||||||
4 | used
primarily for photoprocessing, and including
| ||||||
5 | photoprocessing machinery and equipment purchased for lease.
| ||||||
6 | (16) Until July 1, 2003, and beginning again on the | ||||||
7 | effective date of this amendatory Act of the 96th General | ||||||
8 | Assembly and thereafter, coal exploration, mining, offhighway | ||||||
9 | hauling,
processing, maintenance, and reclamation equipment,
| ||||||
10 | including replacement parts and equipment, and
including | ||||||
11 | equipment purchased for lease, but excluding motor
vehicles | ||||||
12 | required to be registered under the Illinois Vehicle Code. For | ||||||
13 | purposes of this item (16), equipment includes roof bolts and | ||||||
14 | explosives.
| ||||||
15 | (17) Until July 1, 2003, distillation machinery and | ||||||
16 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
17 | retailer, certified by the user to be used
only for the | ||||||
18 | production of ethyl alcohol that will be used for consumption
| ||||||
19 | as motor fuel or as a component of motor fuel for the personal | ||||||
20 | use of the
user, and not subject to sale or resale.
| ||||||
21 | (18) Manufacturing and assembling machinery and equipment | ||||||
22 | used
primarily in the process of manufacturing or assembling | ||||||
23 | tangible
personal property for wholesale or retail sale or | ||||||
24 | lease, whether that sale
or lease is made directly by the | ||||||
25 | manufacturer or by some other person,
whether the materials | ||||||
26 | used in the process are
owned by the manufacturer or some other |
| |||||||
| |||||||
1 | person, or whether that sale or
lease is made apart from or as | ||||||
2 | an incident to the seller's engaging in
the service occupation | ||||||
3 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
4 | other similar items of no commercial value on
special order for | ||||||
5 | a particular purchaser.
| ||||||
6 | (19) Personal property delivered to a purchaser or | ||||||
7 | purchaser's donee
inside Illinois when the purchase order for | ||||||
8 | that personal property was
received by a florist located | ||||||
9 | outside Illinois who has a florist located
inside Illinois | ||||||
10 | deliver the personal property.
| ||||||
11 | (20) Semen used for artificial insemination of livestock | ||||||
12 | for direct
agricultural production.
| ||||||
13 | (21) Horses, or interests in horses, registered with and | ||||||
14 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
15 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
16 | Horse Association, United States
Trotting Association, or | ||||||
17 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
18 | racing for prizes. This item (21) is exempt from the provisions | ||||||
19 | of Section 3-90, and the exemption provided for under this item | ||||||
20 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
21 | claim for credit or refund is allowed on or after January 1, | ||||||
22 | 2008
for such taxes paid during the period beginning May 30, | ||||||
23 | 2000 and ending on January 1, 2008.
| ||||||
24 | (22) Computers and communications equipment utilized for | ||||||
25 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
26 | analysis, or treatment of hospital patients purchased by a |
| |||||||
| |||||||
1 | lessor who leases
the
equipment, under a lease of one year or | ||||||
2 | longer executed or in effect at the
time the lessor would | ||||||
3 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
4 | hospital
that has been issued an active tax exemption | ||||||
5 | identification number by
the
Department under Section 1g of the | ||||||
6 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
7 | manner that does not qualify for
this exemption or is used in | ||||||
8 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
9 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
10 | case may
be, based on the fair market value of the property at | ||||||
11 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
12 | or attempt to collect an
amount (however
designated) that | ||||||
13 | purports to reimburse that lessor for the tax imposed by this
| ||||||
14 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
15 | has not been
paid by the lessor. If a lessor improperly | ||||||
16 | collects any such amount from the
lessee, the lessee shall have | ||||||
17 | a legal right to claim a refund of that amount
from the lessor. | ||||||
18 | If, however, that amount is not refunded to the lessee for
any | ||||||
19 | reason, the lessor is liable to pay that amount to the | ||||||
20 | Department.
| ||||||
21 | (23) Personal property purchased by a lessor who leases the
| ||||||
22 | property, under
a
lease of
one year or longer executed or in | ||||||
23 | effect at the time
the lessor would otherwise be subject to the | ||||||
24 | tax imposed by this Act,
to a governmental body
that has been | ||||||
25 | issued an active sales tax exemption identification number by | ||||||
26 | the
Department under Section 1g of the Retailers' Occupation |
| |||||||
| |||||||
1 | Tax Act.
If the
property is leased in a manner that does not | ||||||
2 | qualify for
this exemption
or used in any other non-exempt | ||||||
3 | manner, the lessor shall be liable for the
tax imposed under | ||||||
4 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
5 | on the fair market value of the property at the time the
| ||||||
6 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
7 | to collect an
amount (however
designated) that purports to | ||||||
8 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
9 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
10 | paid by the lessor. If a lessor improperly collects any such | ||||||
11 | amount from the
lessee, the lessee shall have a legal right to | ||||||
12 | claim a refund of that amount
from the lessor. If, however, | ||||||
13 | that amount is not refunded to the lessee for
any reason, the | ||||||
14 | lessor is liable to pay that amount to the Department.
| ||||||
15 | (24) Beginning with taxable years ending on or after | ||||||
16 | December
31, 1995
and
ending with taxable years ending on or | ||||||
17 | before December 31, 2004,
personal property that is
donated for | ||||||
18 | disaster relief to be used in a State or federally declared
| ||||||
19 | disaster area in Illinois or bordering Illinois by a | ||||||
20 | manufacturer or retailer
that is registered in this State to a | ||||||
21 | corporation, society, association,
foundation, or institution | ||||||
22 | that has been issued a sales tax exemption
identification | ||||||
23 | number by the Department that assists victims of the disaster
| ||||||
24 | who reside within the declared disaster area.
| ||||||
25 | (25) Beginning with taxable years ending on or after | ||||||
26 | December
31, 1995 and
ending with taxable years ending on or |
| |||||||
| |||||||
1 | before December 31, 2004, personal
property that is used in the | ||||||
2 | performance of infrastructure repairs in this
State, including | ||||||
3 | but not limited to municipal roads and streets, access roads,
| ||||||
4 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
5 | line extensions,
water distribution and purification | ||||||
6 | facilities, storm water drainage and
retention facilities, and | ||||||
7 | sewage treatment facilities, resulting from a State
or | ||||||
8 | federally declared disaster in Illinois or bordering Illinois | ||||||
9 | when such
repairs are initiated on facilities located in the | ||||||
10 | declared disaster area
within 6 months after the disaster.
| ||||||
11 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
12 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
13 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
14 | or at a hunting enclosure approved through rules adopted by
the
| ||||||
15 | Department of Natural Resources. This paragraph is exempt from | ||||||
16 | the provisions
of
Section 3-90.
| ||||||
17 | (27) A motor vehicle, as that term is defined in Section | ||||||
18 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
19 | corporation, limited liability company,
society, association, | ||||||
20 | foundation, or institution that is determined by the
Department | ||||||
21 | to be organized and operated exclusively for educational | ||||||
22 | purposes.
For purposes of this exemption, "a corporation, | ||||||
23 | limited liability company,
society, association, foundation, | ||||||
24 | or institution organized and operated
exclusively for | ||||||
25 | educational purposes" means all tax-supported public schools,
| ||||||
26 | private schools that offer systematic instruction in useful |
| |||||||
| |||||||
1 | branches of
learning by methods common to public schools and | ||||||
2 | that compare favorably in
their scope and intensity with the | ||||||
3 | course of study presented in tax-supported
schools, and | ||||||
4 | vocational or technical schools or institutes organized and
| ||||||
5 | operated exclusively to provide a course of study of not less | ||||||
6 | than 6 weeks
duration and designed to prepare individuals to | ||||||
7 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
8 | industrial, business, or commercial
occupation.
| ||||||
9 | (28) Beginning January 1, 2000, personal property, | ||||||
10 | including
food,
purchased through fundraising
events for the | ||||||
11 | benefit of
a public or private elementary or
secondary school, | ||||||
12 | a group of those schools, or one or more school
districts if | ||||||
13 | the events are
sponsored by an entity recognized by the school | ||||||
14 | district that consists
primarily of volunteers and includes
| ||||||
15 | parents and teachers of the school children. This paragraph | ||||||
16 | does not apply
to fundraising
events (i) for the benefit of | ||||||
17 | private home instruction or (ii)
for which the fundraising | ||||||
18 | entity purchases the personal property sold at
the events from | ||||||
19 | another individual or entity that sold the property for the
| ||||||
20 | purpose of resale by the fundraising entity and that
profits | ||||||
21 | from the sale to the
fundraising entity. This paragraph is | ||||||
22 | exempt
from the provisions
of Section 3-90.
| ||||||
23 | (29) Beginning January 1, 2000 and through December 31, | ||||||
24 | 2001, new or
used automatic vending
machines that prepare and | ||||||
25 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
26 | items, and replacement parts for these machines.
Beginning |
| |||||||
| |||||||
1 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
2 | for machines used in
commercial, coin-operated amusement and | ||||||
3 | vending business if a use or occupation
tax is paid on the | ||||||
4 | gross receipts derived from the use of the commercial,
| ||||||
5 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
6 | is exempt from the provisions of Section 3-90.
| ||||||
7 | (30) Beginning January 1, 2001 and through June 30, 2011, | ||||||
8 | food for human consumption that is to be consumed off the | ||||||
9 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
10 | drinks, and food that
has been prepared for immediate | ||||||
11 | consumption) and prescription and
nonprescription medicines, | ||||||
12 | drugs, medical appliances, and insulin, urine
testing | ||||||
13 | materials, syringes, and needles used by diabetics, for human | ||||||
14 | use, when
purchased for use by a person receiving medical | ||||||
15 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
16 | resides in a licensed long-term care facility,
as defined in | ||||||
17 | the Nursing Home Care Act.
| ||||||
18 | (31) Beginning on
the effective date of this amendatory Act | ||||||
19 | of the 92nd General Assembly,
computers and communications | ||||||
20 | equipment
utilized for any hospital purpose and equipment used | ||||||
21 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
22 | purchased by a lessor who leases
the equipment, under a lease | ||||||
23 | of one year or longer executed or in effect at the
time the | ||||||
24 | lessor would otherwise be subject to the tax imposed by this | ||||||
25 | Act, to a
hospital that has been issued an active tax exemption | ||||||
26 | identification number by
the Department under Section 1g of the |
| |||||||
| |||||||
1 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
2 | manner that does not qualify for this exemption or is
used in | ||||||
3 | any other nonexempt manner, the lessor shall be liable for the | ||||||
4 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
5 | case may be, based on
the fair market value of the property at | ||||||
6 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
7 | or attempt to collect an amount (however
designated) that | ||||||
8 | purports to reimburse that lessor for the tax imposed by this
| ||||||
9 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
10 | has not been
paid by the lessor. If a lessor improperly | ||||||
11 | collects any such amount from the
lessee, the lessee shall have | ||||||
12 | a legal right to claim a refund of that amount
from the lessor. | ||||||
13 | If, however, that amount is not refunded to the lessee for
any | ||||||
14 | reason, the lessor is liable to pay that amount to the | ||||||
15 | Department.
This paragraph is exempt from the provisions of | ||||||
16 | Section 3-90.
| ||||||
17 | (32) Beginning on
the effective date of this amendatory Act | ||||||
18 | of the 92nd General Assembly,
personal property purchased by a | ||||||
19 | lessor who leases the property,
under a lease of one year or | ||||||
20 | longer executed or in effect at the time the
lessor would | ||||||
21 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
22 | governmental body that has been issued an active sales tax | ||||||
23 | exemption
identification number by the Department under | ||||||
24 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
25 | property is leased in a manner that does not
qualify for this | ||||||
26 | exemption or used in any other nonexempt manner, the lessor
|
| |||||||
| |||||||
1 | shall be liable for the tax imposed under this Act or the | ||||||
2 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
3 | market value of the property at the time
the nonqualifying use | ||||||
4 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
5 | (however designated) that purports to reimburse that lessor for | ||||||
6 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
7 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
8 | lessor improperly collects any such
amount from the lessee, the | ||||||
9 | lessee shall have a legal right to claim a refund
of that | ||||||
10 | amount from the lessor. If, however, that amount is not | ||||||
11 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
12 | pay that amount to the
Department. This paragraph is exempt | ||||||
13 | from the provisions of Section 3-90.
| ||||||
14 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
15 | the use in this State of motor vehicles of
the second division | ||||||
16 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
17 | are subject to the commercial distribution fee imposed under | ||||||
18 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
19 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
20 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
21 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
22 | to the commercial distribution fee imposed under Section | ||||||
23 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
24 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
25 | this exemption applies to repair and
replacement parts added | ||||||
26 | after the initial purchase of such a motor vehicle if
that |
| |||||||
| |||||||
1 | motor
vehicle is used in a manner that would qualify for the | ||||||
2 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
3 | purposes of this paragraph, the term "used for commercial | ||||||
4 | purposes" means the transportation of persons or property in | ||||||
5 | furtherance of any commercial or industrial enterprise, | ||||||
6 | whether for-hire or not.
| ||||||
7 | (34) Beginning January 1, 2008, tangible personal property | ||||||
8 | used in the construction or maintenance of a community water | ||||||
9 | supply, as defined under Section 3.145 of the Environmental | ||||||
10 | Protection Act, that is operated by a not-for-profit | ||||||
11 | corporation that holds a valid water supply permit issued under | ||||||
12 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
13 | exempt from the provisions of Section 3-90. | ||||||
14 | (35) Beginning on the effective date of this amendatory Act | ||||||
15 | of the 96th General Assembly, equipment used at
an energy | ||||||
16 | facility, as that term is defined in Section 1-10 of the | ||||||
17 | Illinois Power Agency Act, located within the State, including | ||||||
18 | replacement parts and equipment and
including equipment | ||||||
19 | purchased for lease, but excluding motor
vehicles required to | ||||||
20 | be registered under the Illinois Vehicle Code. | ||||||
21 | (36) Beginning on the effective date of this amendatory Act | ||||||
22 | of the 96th General Assembly, feedstock used at an energy | ||||||
23 | facility, as that term is defined in Section 1-10 of the | ||||||
24 | Illinois Power Agency Act, located in this State. | ||||||
25 | (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | ||||||
26 | eff. 1-1-08; 95-876, eff. 8-21-08.)
|
| |||||||
| |||||||
1 | Section 15-30. The Service Use Tax Act is amended by | ||||||
2 | changing Section 3-5 as follows:
| ||||||
3 | (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
| ||||||
4 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
5 | personal property
is exempt from the tax imposed by this Act:
| ||||||
6 | (1) Personal property purchased from a corporation, | ||||||
7 | society,
association, foundation, institution, or | ||||||
8 | organization, other than a limited
liability company, that is | ||||||
9 | organized and operated as a not-for-profit service
enterprise | ||||||
10 | for the benefit of persons 65 years of age or older if the | ||||||
11 | personal
property was not purchased by the enterprise for the | ||||||
12 | purpose of resale by the
enterprise.
| ||||||
13 | (2) Personal property purchased by a non-profit Illinois | ||||||
14 | county fair
association for use in conducting, operating, or | ||||||
15 | promoting the county fair.
| ||||||
16 | (3) Personal property purchased by a not-for-profit arts
or | ||||||
17 | cultural
organization that establishes, by proof required by | ||||||
18 | the Department by rule,
that it has received an exemption under | ||||||
19 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
20 | organized and operated primarily for the
presentation
or | ||||||
21 | support of arts or cultural programming, activities, or | ||||||
22 | services. These
organizations include, but are not limited to, | ||||||
23 | music and dramatic arts
organizations such as symphony | ||||||
24 | orchestras and theatrical groups, arts and
cultural service |
| |||||||
| |||||||
1 | organizations, local arts councils, visual arts organizations,
| ||||||
2 | and media arts organizations.
On and after the effective date | ||||||
3 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
4 | an entity otherwise eligible for this exemption shall not
make | ||||||
5 | tax-free purchases unless it has an active identification | ||||||
6 | number issued by
the Department.
| ||||||
7 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
8 | coinage issued
by the State of Illinois, the government of the | ||||||
9 | United States of America,
or the government of any foreign | ||||||
10 | country, and bullion.
| ||||||
11 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
12 | 2004, graphic arts machinery and equipment, including
repair | ||||||
13 | and
replacement parts, both new and used, and including that | ||||||
14 | manufactured on
special order or purchased for lease, certified | ||||||
15 | by the purchaser to be used
primarily for graphic arts | ||||||
16 | production.
Equipment includes chemicals or
chemicals acting | ||||||
17 | as catalysts but only if
the chemicals or chemicals acting as | ||||||
18 | catalysts effect a direct and immediate
change upon a graphic | ||||||
19 | arts product.
| ||||||
20 | (6) Personal property purchased from a teacher-sponsored | ||||||
21 | student
organization affiliated with an elementary or | ||||||
22 | secondary school located
in Illinois.
| ||||||
23 | (7) Farm machinery and equipment, both new and used, | ||||||
24 | including that
manufactured on special order, certified by the | ||||||
25 | purchaser to be used
primarily for production agriculture or | ||||||
26 | State or federal agricultural
programs, including individual |
| |||||||
| |||||||
1 | replacement parts for the machinery and
equipment, including | ||||||
2 | machinery and equipment purchased for lease,
and including | ||||||
3 | implements of husbandry defined in Section 1-130 of
the | ||||||
4 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
5 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
6 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
7 | but
excluding other motor vehicles required to be registered | ||||||
8 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
9 | hoop houses used for propagating, growing, or
overwintering | ||||||
10 | plants shall be considered farm machinery and equipment under
| ||||||
11 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
12 | shall include units sold
separately from a motor vehicle | ||||||
13 | required to be licensed and units sold mounted
on a motor | ||||||
14 | vehicle required to be licensed if the selling price of the | ||||||
15 | tender
is separately stated.
| ||||||
16 | Farm machinery and equipment shall include precision | ||||||
17 | farming equipment
that is
installed or purchased to be | ||||||
18 | installed on farm machinery and equipment
including, but not | ||||||
19 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
20 | or spreaders.
Precision farming equipment includes, but is not | ||||||
21 | limited to,
soil testing sensors, computers, monitors, | ||||||
22 | software, global positioning
and mapping systems, and other | ||||||
23 | such equipment.
| ||||||
24 | Farm machinery and equipment also includes computers, | ||||||
25 | sensors, software, and
related equipment used primarily in the
| ||||||
26 | computer-assisted operation of production agriculture |
| |||||||
| |||||||
1 | facilities, equipment,
and activities such as, but
not limited | ||||||
2 | to,
the collection, monitoring, and correlation of
animal and | ||||||
3 | crop data for the purpose of
formulating animal diets and | ||||||
4 | agricultural chemicals. This item (7) is exempt
from the | ||||||
5 | provisions of
Section 3-75.
| ||||||
6 | (8) Fuel and petroleum products sold to or used by an air | ||||||
7 | common
carrier, certified by the carrier to be used for | ||||||
8 | consumption, shipment, or
storage in the conduct of its | ||||||
9 | business as an air common carrier, for a
flight destined for or | ||||||
10 | returning from a location or locations
outside the United | ||||||
11 | States without regard to previous or subsequent domestic
| ||||||
12 | stopovers.
| ||||||
13 | (9) Proceeds of mandatory service charges separately | ||||||
14 | stated on
customers' bills for the purchase and consumption of | ||||||
15 | food and beverages
acquired as an incident to the purchase of a | ||||||
16 | service from a serviceman, to
the extent that the proceeds of | ||||||
17 | the service charge are in fact
turned over as tips or as a | ||||||
18 | substitute for tips to the employees who
participate directly | ||||||
19 | in preparing, serving, hosting or cleaning up the
food or | ||||||
20 | beverage function with respect to which the service charge is | ||||||
21 | imposed.
| ||||||
22 | (10) Until July 1, 2003, and beginning again on the | ||||||
23 | effective date of this amendatory Act of the 96th General | ||||||
24 | Assembly and thereafter, oil field exploration, drilling, and | ||||||
25 | production
equipment, including
(i) rigs and parts of rigs, | ||||||
26 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and |
| |||||||
| |||||||
1 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
2 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
3 | individual replacement part for oil field exploration,
| ||||||
4 | drilling, and production equipment, and (vi) machinery and | ||||||
5 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
6 | required to be registered under the Illinois
Vehicle Code.
| ||||||
7 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
8 | and
equipment, including repair and replacement parts, both new | ||||||
9 | and
used, including that manufactured on special order, | ||||||
10 | certified by the
purchaser to be used primarily for | ||||||
11 | photoprocessing, and including
photoprocessing machinery and | ||||||
12 | equipment purchased for lease.
| ||||||
13 | (12) Until July 1, 2003, and beginning again on the | ||||||
14 | effective date of this amendatory Act of the 96th General | ||||||
15 | Assembly and thereafter, coal exploration, mining, offhighway | ||||||
16 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
17 | including
replacement parts and equipment, and including
| ||||||
18 | equipment purchased for lease, but excluding motor vehicles | ||||||
19 | required to be
registered under the Illinois Vehicle Code. For | ||||||
20 | purposes of this item (12), equipment includes roof bolts and | ||||||
21 | explosives.
| ||||||
22 | (13) Semen used for artificial insemination of livestock | ||||||
23 | for direct
agricultural production.
| ||||||
24 | (14) Horses, or interests in horses, registered with and | ||||||
25 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
26 | Registry of America, Appaloosa Horse Club, American Quarter
|
| |||||||
| |||||||
1 | Horse Association, United States
Trotting Association, or | ||||||
2 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
3 | racing for prizes. This item (14) is exempt from the provisions | ||||||
4 | of Section 3-75, and the exemption provided for under this item | ||||||
5 | (14) applies for all periods beginning May 30, 1995, but no | ||||||
6 | claim for credit or refund is allowed on or after the effective | ||||||
7 | date of this amendatory Act of the 95th General Assembly for | ||||||
8 | such taxes paid during the period beginning May 30, 2000 and | ||||||
9 | ending on the effective date of this amendatory Act of the 95th | ||||||
10 | General Assembly.
| ||||||
11 | (15) Computers and communications equipment utilized for | ||||||
12 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
13 | analysis, or treatment of hospital patients purchased by a | ||||||
14 | lessor who leases
the
equipment, under a lease of one year or | ||||||
15 | longer executed or in effect at the
time
the lessor would | ||||||
16 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
17 | hospital
that has been issued an active tax exemption | ||||||
18 | identification number by the
Department under Section 1g of the | ||||||
19 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
20 | manner that does not qualify for
this exemption
or is used in | ||||||
21 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
22 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
23 | be, based on the fair market value of the property at the time | ||||||
24 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
25 | attempt to collect an
amount (however
designated) that purports | ||||||
26 | to reimburse that lessor for the tax imposed by this
Act or the |
| |||||||
| |||||||
1 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
2 | the lessor. If a lessor improperly collects any such amount | ||||||
3 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
4 | refund of that amount
from the lessor. If, however, that amount | ||||||
5 | is not refunded to the lessee for
any reason, the lessor is | ||||||
6 | liable to pay that amount to the Department.
| ||||||
7 | (16) Personal property purchased by a lessor who leases the
| ||||||
8 | property, under
a
lease of one year or longer executed or in | ||||||
9 | effect at the time
the lessor would otherwise be subject to the | ||||||
10 | tax imposed by this Act,
to a governmental body
that has been | ||||||
11 | issued an active tax exemption identification number by the
| ||||||
12 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
13 | Act.
If the
property is leased in a manner that does not | ||||||
14 | qualify for
this exemption
or is used in any other non-exempt | ||||||
15 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
16 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
17 | fair market value of the property at the time the
| ||||||
18 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
19 | to collect an
amount (however
designated) that purports to | ||||||
20 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
21 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
22 | the lessor. If a lessor improperly collects any such amount | ||||||
23 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
24 | refund of that amount
from the lessor. If, however, that amount | ||||||
25 | is not refunded to the lessee for
any reason, the lessor is | ||||||
26 | liable to pay that amount to the Department.
|
| |||||||
| |||||||
1 | (17) Beginning with taxable years ending on or after | ||||||
2 | December
31,
1995
and
ending with taxable years ending on or | ||||||
3 | before December 31, 2004,
personal property that is
donated for | ||||||
4 | disaster relief to be used in a State or federally declared
| ||||||
5 | disaster area in Illinois or bordering Illinois by a | ||||||
6 | manufacturer or retailer
that is registered in this State to a | ||||||
7 | corporation, society, association,
foundation, or institution | ||||||
8 | that has been issued a sales tax exemption
identification | ||||||
9 | number by the Department that assists victims of the disaster
| ||||||
10 | who reside within the declared disaster area.
| ||||||
11 | (18) Beginning with taxable years ending on or after | ||||||
12 | December
31, 1995 and
ending with taxable years ending on or | ||||||
13 | before December 31, 2004, personal
property that is used in the | ||||||
14 | performance of infrastructure repairs in this
State, including | ||||||
15 | but not limited to municipal roads and streets, access roads,
| ||||||
16 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
17 | line extensions,
water distribution and purification | ||||||
18 | facilities, storm water drainage and
retention facilities, and | ||||||
19 | sewage treatment facilities, resulting from a State
or | ||||||
20 | federally declared disaster in Illinois or bordering Illinois | ||||||
21 | when such
repairs are initiated on facilities located in the | ||||||
22 | declared disaster area
within 6 months after the disaster.
| ||||||
23 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
24 | at a "game
breeding
and hunting preserve area" or an "exotic | ||||||
25 | game hunting area" as those terms are
used in
the Wildlife Code | ||||||
26 | or at a hunting enclosure approved through rules adopted by
the
|
| |||||||
| |||||||
1 | Department of Natural Resources. This paragraph is exempt from | ||||||
2 | the provisions
of
Section 3-75.
| ||||||
3 | (20) A motor vehicle, as that term is defined in Section | ||||||
4 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
5 | corporation, limited liability
company, society, association, | ||||||
6 | foundation, or institution that is determined by
the Department | ||||||
7 | to be organized and operated exclusively for educational
| ||||||
8 | purposes. For purposes of this exemption, "a corporation, | ||||||
9 | limited liability
company, society, association, foundation, | ||||||
10 | or institution organized and
operated
exclusively for | ||||||
11 | educational purposes" means all tax-supported public schools,
| ||||||
12 | private schools that offer systematic instruction in useful | ||||||
13 | branches of
learning by methods common to public schools and | ||||||
14 | that compare favorably in
their scope and intensity with the | ||||||
15 | course of study presented in tax-supported
schools, and | ||||||
16 | vocational or technical schools or institutes organized and
| ||||||
17 | operated exclusively to provide a course of study of not less | ||||||
18 | than 6 weeks
duration and designed to prepare individuals to | ||||||
19 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
20 | industrial, business, or commercial
occupation.
| ||||||
21 | (21) Beginning January 1, 2000, personal property, | ||||||
22 | including
food,
purchased through fundraising
events for the | ||||||
23 | benefit of
a public or private elementary or
secondary school, | ||||||
24 | a group of those schools, or one or more school
districts if | ||||||
25 | the events are
sponsored by an entity recognized by the school | ||||||
26 | district that consists
primarily of volunteers and includes
|
| |||||||
| |||||||
1 | parents and teachers of the school children. This paragraph | ||||||
2 | does not apply
to fundraising
events (i) for the benefit of | ||||||
3 | private home instruction or (ii)
for which the fundraising | ||||||
4 | entity purchases the personal property sold at
the events from | ||||||
5 | another individual or entity that sold the property for the
| ||||||
6 | purpose of resale by the fundraising entity and that
profits | ||||||
7 | from the sale to the
fundraising entity. This paragraph is | ||||||
8 | exempt
from the provisions
of Section 3-75.
| ||||||
9 | (22) Beginning January 1, 2000
and through December 31, | ||||||
10 | 2001, new or used automatic vending
machines that prepare and | ||||||
11 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
12 | items, and replacement parts for these machines.
Beginning | ||||||
13 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
14 | for machines used in
commercial, coin-operated
amusement
and | ||||||
15 | vending business if a use or occupation tax is paid on the | ||||||
16 | gross receipts
derived from
the use of the commercial, | ||||||
17 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
18 | is exempt from the provisions of Section 3-75.
| ||||||
19 | (23) Beginning August 23, 2001 and through June 30, 2011, | ||||||
20 | food for human consumption that is to be consumed off the
| ||||||
21 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
22 | drinks, and food that
has been prepared for immediate | ||||||
23 | consumption) and prescription and
nonprescription medicines, | ||||||
24 | drugs, medical appliances, and insulin, urine
testing | ||||||
25 | materials, syringes, and needles used by diabetics, for human | ||||||
26 | use, when
purchased for use by a person receiving medical |
| |||||||
| |||||||
1 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
2 | resides in a licensed long-term care facility,
as defined in | ||||||
3 | the Nursing Home Care Act.
| ||||||
4 | (24) Beginning on the effective date of this amendatory Act | ||||||
5 | of the 92nd
General Assembly, computers and communications | ||||||
6 | equipment
utilized for any hospital purpose and equipment used | ||||||
7 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
8 | purchased by a lessor who leases
the equipment, under a lease | ||||||
9 | of one year or longer executed or in effect at the
time the | ||||||
10 | lessor would otherwise be subject to the tax imposed by this | ||||||
11 | Act, to a
hospital that has been issued an active tax exemption | ||||||
12 | identification number by
the Department under Section 1g of the | ||||||
13 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
14 | manner that does not qualify for this exemption or is
used in | ||||||
15 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
16 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
17 | be, based on the
fair market value of the property at the time | ||||||
18 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
19 | attempt to collect an amount (however
designated) that purports | ||||||
20 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
21 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
22 | the lessor. If a lessor improperly collects any such amount | ||||||
23 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
24 | refund of that amount
from the lessor. If, however, that amount | ||||||
25 | is not refunded to the lessee for
any reason, the lessor is | ||||||
26 | liable to pay that amount to the Department.
This paragraph is |
| |||||||
| |||||||
1 | exempt from the provisions of Section 3-75.
| ||||||
2 | (25) Beginning
on the effective date of this amendatory Act | ||||||
3 | of the 92nd General Assembly,
personal property purchased by a | ||||||
4 | lessor
who leases the property, under a lease of one year or | ||||||
5 | longer executed or in
effect at the time the lessor would | ||||||
6 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
7 | governmental body that has been issued an active tax exemption
| ||||||
8 | identification number by the Department under Section 1g of the | ||||||
9 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
10 | manner that does not
qualify for this exemption or is used in | ||||||
11 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
12 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
13 | be, based on the fair market value of the property at the time
| ||||||
14 | the nonqualifying use occurs. No lessor shall collect or | ||||||
15 | attempt to collect
an amount (however designated) that purports | ||||||
16 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
17 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
18 | the lessor. If a lessor improperly collects any such amount
| ||||||
19 | from the lessee, the lessee shall have a legal right to claim a | ||||||
20 | refund of that
amount from the lessor. If, however, that amount | ||||||
21 | is not refunded to the lessee
for any reason, the lessor is | ||||||
22 | liable to pay that amount to the Department.
This paragraph is | ||||||
23 | exempt from the provisions of Section 3-75.
| ||||||
24 | (26) Beginning January 1, 2008, tangible personal property | ||||||
25 | used in the construction or maintenance of a community water | ||||||
26 | supply, as defined under Section 3.145 of the Environmental |
| |||||||
| |||||||
1 | Protection Act, that is operated by a not-for-profit | ||||||
2 | corporation that holds a valid water supply permit issued under | ||||||
3 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
4 | exempt from the provisions of Section 3-75.
| ||||||
5 | (27) Beginning on the effective date of this amendatory Act | ||||||
6 | of the 96th General Assembly, equipment used at
an energy | ||||||
7 | facility, as that term is defined in Section 1-10 of the | ||||||
8 | Illinois Power Agency Act, located within the State, including | ||||||
9 | replacement parts and equipment and
including equipment | ||||||
10 | purchased for lease, but excluding motor
vehicles required to | ||||||
11 | be registered under the Illinois Vehicle Code. | ||||||
12 | (28) Beginning on the effective date of this amendatory Act | ||||||
13 | of the 96th General Assembly, feedstock used at an energy | ||||||
14 | facility, as that term is defined in Section 1-10 of the | ||||||
15 | Illinois Power Agency Act, located in this State. | ||||||
16 | (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | ||||||
17 | eff. 1-1-08; 95-876, eff. 8-21-08.)
| ||||||
18 | Section 15-35. The Service Occupation Tax Act is amended by | ||||||
19 | changing Section 3-5 as follows:
| ||||||
20 | (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
| ||||||
21 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
22 | property is
exempt from the tax imposed by this Act:
| ||||||
23 | (1) Personal property sold by a corporation, society, | ||||||
24 | association,
foundation, institution, or organization, other |
| |||||||
| |||||||
1 | than a limited liability
company, that is organized and | ||||||
2 | operated as a not-for-profit service enterprise
for the benefit | ||||||
3 | of persons 65 years of age or older if the personal property
| ||||||
4 | was not purchased by the enterprise for the purpose of resale | ||||||
5 | by the
enterprise.
| ||||||
6 | (2) Personal property purchased by a not-for-profit | ||||||
7 | Illinois county fair
association for use in conducting, | ||||||
8 | operating, or promoting the county fair.
| ||||||
9 | (3) Personal property purchased by any not-for-profit
arts | ||||||
10 | or cultural organization that establishes, by proof required by | ||||||
11 | the
Department by
rule, that it has received an exemption under | ||||||
12 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
13 | organized and operated primarily for the
presentation
or | ||||||
14 | support of arts or cultural programming, activities, or | ||||||
15 | services. These
organizations include, but are not limited to, | ||||||
16 | music and dramatic arts
organizations such as symphony | ||||||
17 | orchestras and theatrical groups, arts and
cultural service | ||||||
18 | organizations, local arts councils, visual arts organizations,
| ||||||
19 | and media arts organizations.
On and after the effective date | ||||||
20 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
21 | an entity otherwise eligible for this exemption shall not
make | ||||||
22 | tax-free purchases unless it has an active identification | ||||||
23 | number issued by
the Department.
| ||||||
24 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
25 | coinage
issued by the State of Illinois, the government of the | ||||||
26 | United States of
America, or the government of any foreign |
| |||||||
| |||||||
1 | country, and bullion.
| ||||||
2 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
3 | 2004, graphic arts machinery and equipment, including
repair | ||||||
4 | and
replacement parts, both new and used, and including that | ||||||
5 | manufactured on
special order or purchased for lease, certified | ||||||
6 | by the purchaser to be used
primarily for graphic arts | ||||||
7 | production.
Equipment includes chemicals or chemicals acting | ||||||
8 | as catalysts but only if
the
chemicals or chemicals acting as | ||||||
9 | catalysts effect a direct and immediate change
upon a graphic | ||||||
10 | arts product.
| ||||||
11 | (6) Personal property sold by a teacher-sponsored student | ||||||
12 | organization
affiliated with an elementary or secondary school | ||||||
13 | located in Illinois.
| ||||||
14 | (7) Farm machinery and equipment, both new and used, | ||||||
15 | including that
manufactured on special order, certified by the | ||||||
16 | purchaser to be used
primarily for production agriculture or | ||||||
17 | State or federal agricultural
programs, including individual | ||||||
18 | replacement parts for the machinery and
equipment, including | ||||||
19 | machinery and equipment purchased for lease,
and including | ||||||
20 | implements of husbandry defined in Section 1-130 of
the | ||||||
21 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
22 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
23 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
24 | but
excluding other motor vehicles required to be registered | ||||||
25 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
26 | hoop houses used for propagating, growing, or
overwintering |
| |||||||
| |||||||
1 | plants shall be considered farm machinery and equipment under
| ||||||
2 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
3 | shall include units sold
separately from a motor vehicle | ||||||
4 | required to be licensed and units sold mounted
on a motor | ||||||
5 | vehicle required to be licensed if the selling price of the | ||||||
6 | tender
is separately stated.
| ||||||
7 | Farm machinery and equipment shall include precision | ||||||
8 | farming equipment
that is
installed or purchased to be | ||||||
9 | installed on farm machinery and equipment
including, but not | ||||||
10 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
11 | or spreaders.
Precision farming equipment includes, but is not | ||||||
12 | limited to,
soil testing sensors, computers, monitors, | ||||||
13 | software, global positioning
and mapping systems, and other | ||||||
14 | such equipment.
| ||||||
15 | Farm machinery and equipment also includes computers, | ||||||
16 | sensors, software, and
related equipment used primarily in the
| ||||||
17 | computer-assisted operation of production agriculture | ||||||
18 | facilities, equipment,
and activities such as, but
not limited | ||||||
19 | to,
the collection, monitoring, and correlation of
animal and | ||||||
20 | crop data for the purpose of
formulating animal diets and | ||||||
21 | agricultural chemicals. This item (7) is exempt
from the | ||||||
22 | provisions of
Section 3-55.
| ||||||
23 | (8) Fuel and petroleum products sold to or used by an air | ||||||
24 | common
carrier, certified by the carrier to be used for | ||||||
25 | consumption, shipment,
or storage in the conduct of its | ||||||
26 | business as an air common carrier, for
a flight destined for or |
| |||||||
| |||||||
1 | returning from a location or locations
outside the United | ||||||
2 | States without regard to previous or subsequent domestic
| ||||||
3 | stopovers.
| ||||||
4 | (9) Proceeds of mandatory service charges separately
| ||||||
5 | stated on customers' bills for the purchase and consumption of | ||||||
6 | food and
beverages, to the extent that the proceeds of the | ||||||
7 | service charge are in fact
turned over as tips or as a | ||||||
8 | substitute for tips to the employees who
participate directly | ||||||
9 | in preparing, serving, hosting or cleaning up the
food or | ||||||
10 | beverage function with respect to which the service charge is | ||||||
11 | imposed.
| ||||||
12 | (10) Until July 1, 2003, and beginning again on the | ||||||
13 | effective date of this amendatory Act of the 96th General | ||||||
14 | Assembly and thereafter, oil field exploration, drilling, and | ||||||
15 | production
equipment,
including (i) rigs and parts of rigs, | ||||||
16 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
17 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
18 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
19 | individual replacement part for oil field exploration,
| ||||||
20 | drilling, and production equipment, and (vi) machinery and | ||||||
21 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
22 | required to be registered under the Illinois
Vehicle Code.
| ||||||
23 | (11) Photoprocessing machinery and equipment, including | ||||||
24 | repair and
replacement parts, both new and used, including that | ||||||
25 | manufactured on
special order, certified by the purchaser to be | ||||||
26 | used primarily for
photoprocessing, and including |
| |||||||
| |||||||
1 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
2 | (12) Until July 1, 2003, and beginning again on the | ||||||
3 | effective date of this amendatory Act of the 96th General | ||||||
4 | Assembly and thereafter, coal exploration, mining, offhighway | ||||||
5 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
6 | including
replacement parts and equipment, and including
| ||||||
7 | equipment
purchased for lease, but excluding motor vehicles | ||||||
8 | required to be registered
under the Illinois Vehicle Code. For | ||||||
9 | purposes of this item (12), equipment includes roof bolts and | ||||||
10 | explosives.
| ||||||
11 | (13) Beginning January 1, 1992 and through June 30, 2011, | ||||||
12 | food for human consumption that is to be consumed off the | ||||||
13 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
14 | drinks and food that
has been prepared for immediate | ||||||
15 | consumption) and prescription and
non-prescription medicines, | ||||||
16 | drugs, medical appliances, and insulin, urine
testing | ||||||
17 | materials, syringes, and needles used by diabetics, for human | ||||||
18 | use,
when purchased for use by a person receiving medical | ||||||
19 | assistance under
Article 5 of the Illinois Public Aid Code who | ||||||
20 | resides in a licensed
long-term care facility, as defined in | ||||||
21 | the Nursing Home Care Act.
| ||||||
22 | (14) Semen used for artificial insemination of livestock | ||||||
23 | for direct
agricultural production.
| ||||||
24 | (15) Horses, or interests in horses, registered with and | ||||||
25 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
26 | Registry of America, Appaloosa Horse Club, American Quarter
|
| |||||||
| |||||||
1 | Horse Association, United States
Trotting Association, or | ||||||
2 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
3 | racing for prizes. This item (15) is exempt from the provisions | ||||||
4 | of Section 3-55, and the exemption provided for under this item | ||||||
5 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
6 | claim for credit or refund is allowed on or after January 1, | ||||||
7 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
8 | paid during the period beginning May 30, 2000 and ending on | ||||||
9 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
10 | (16) Computers and communications equipment utilized for | ||||||
11 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
12 | analysis, or treatment of hospital patients sold to a lessor | ||||||
13 | who leases the
equipment, under a lease of one year or longer | ||||||
14 | executed or in effect at the
time of the purchase, to a
| ||||||
15 | hospital
that has been issued an active tax exemption | ||||||
16 | identification number by the
Department under Section 1g of the | ||||||
17 | Retailers' Occupation Tax Act.
| ||||||
18 | (17) Personal property sold to a lessor who leases the
| ||||||
19 | property, under a
lease of one year or longer executed or in | ||||||
20 | effect at the time of the purchase,
to a governmental body
that | ||||||
21 | has been issued an active tax exemption identification number | ||||||
22 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
23 | Tax Act.
| ||||||
24 | (18) Beginning with taxable years ending on or after | ||||||
25 | December
31, 1995
and
ending with taxable years ending on or | ||||||
26 | before December 31, 2004,
personal property that is
donated for |
| |||||||
| |||||||
1 | disaster relief to be used in a State or federally declared
| ||||||
2 | disaster area in Illinois or bordering Illinois by a | ||||||
3 | manufacturer or retailer
that is registered in this State to a | ||||||
4 | corporation, society, association,
foundation, or institution | ||||||
5 | that has been issued a sales tax exemption
identification | ||||||
6 | number by the Department that assists victims of the disaster
| ||||||
7 | who reside within the declared disaster area.
| ||||||
8 | (19) Beginning with taxable years ending on or after | ||||||
9 | December
31, 1995 and
ending with taxable years ending on or | ||||||
10 | before December 31, 2004, personal
property that is used in the | ||||||
11 | performance of infrastructure repairs in this
State, including | ||||||
12 | but not limited to municipal roads and streets, access roads,
| ||||||
13 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
14 | line extensions,
water distribution and purification | ||||||
15 | facilities, storm water drainage and
retention facilities, and | ||||||
16 | sewage treatment facilities, resulting from a State
or | ||||||
17 | federally declared disaster in Illinois or bordering Illinois | ||||||
18 | when such
repairs are initiated on facilities located in the | ||||||
19 | declared disaster area
within 6 months after the disaster.
| ||||||
20 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
21 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
22 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
23 | at a hunting enclosure approved through rules adopted by the
| ||||||
24 | Department of Natural Resources. This paragraph is exempt from | ||||||
25 | the provisions
of
Section 3-55.
| ||||||
26 | (21) A motor vehicle, as that term is defined in Section |
| |||||||
| |||||||
1 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
2 | corporation, limited liability
company, society, association, | ||||||
3 | foundation, or institution that is determined by
the Department | ||||||
4 | to be organized and operated exclusively for educational
| ||||||
5 | purposes. For purposes of this exemption, "a corporation, | ||||||
6 | limited liability
company, society, association, foundation, | ||||||
7 | or institution organized and
operated
exclusively for | ||||||
8 | educational purposes" means all tax-supported public schools,
| ||||||
9 | private schools that offer systematic instruction in useful | ||||||
10 | branches of
learning by methods common to public schools and | ||||||
11 | that compare favorably in
their scope and intensity with the | ||||||
12 | course of study presented in tax-supported
schools, and | ||||||
13 | vocational or technical schools or institutes organized and
| ||||||
14 | operated exclusively to provide a course of study of not less | ||||||
15 | than 6 weeks
duration and designed to prepare individuals to | ||||||
16 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
17 | industrial, business, or commercial
occupation.
| ||||||
18 | (22) Beginning January 1, 2000, personal property, | ||||||
19 | including
food,
purchased through fundraising
events for the | ||||||
20 | benefit of
a public or private elementary or
secondary school, | ||||||
21 | a group of those schools, or one or more school
districts if | ||||||
22 | the events are
sponsored by an entity recognized by the school | ||||||
23 | district that consists
primarily of volunteers and includes
| ||||||
24 | parents and teachers of the school children. This paragraph | ||||||
25 | does not apply
to fundraising
events (i) for the benefit of | ||||||
26 | private home instruction or (ii)
for which the fundraising |
| |||||||
| |||||||
1 | entity purchases the personal property sold at
the events from | ||||||
2 | another individual or entity that sold the property for the
| ||||||
3 | purpose of resale by the fundraising entity and that
profits | ||||||
4 | from the sale to the
fundraising entity. This paragraph is | ||||||
5 | exempt
from the provisions
of Section 3-55.
| ||||||
6 | (23) Beginning January 1, 2000
and through December 31, | ||||||
7 | 2001, new or used automatic vending
machines that prepare and | ||||||
8 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
9 | items, and replacement parts for these machines.
Beginning | ||||||
10 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
11 | for
machines used in commercial, coin-operated amusement
and | ||||||
12 | vending business if a use or occupation tax is paid on the | ||||||
13 | gross receipts
derived from
the use of the commercial, | ||||||
14 | coin-operated amusement and vending machines.
This paragraph | ||||||
15 | is exempt from the provisions of Section 3-55.
| ||||||
16 | (24) Beginning
on the effective date of this amendatory Act | ||||||
17 | of the 92nd General Assembly,
computers and communications | ||||||
18 | equipment
utilized for any hospital purpose and equipment used | ||||||
19 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
20 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
21 | year or longer executed or in effect at the
time of the | ||||||
22 | purchase, to a hospital that has been issued an active tax
| ||||||
23 | exemption identification number by the Department under | ||||||
24 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
25 | is exempt from the provisions of
Section 3-55.
| ||||||
26 | (25) Beginning
on the effective date of this amendatory Act |
| |||||||
| |||||||
1 | of the 92nd General Assembly,
personal property sold to a | ||||||
2 | lessor who
leases the property, under a lease of one year or | ||||||
3 | longer executed or in effect
at the time of the purchase, to a | ||||||
4 | governmental body that has been issued an
active tax exemption | ||||||
5 | identification number by the Department under Section 1g
of the | ||||||
6 | Retailers' Occupation Tax Act. This paragraph is exempt from | ||||||
7 | the
provisions of Section 3-55.
| ||||||
8 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
9 | 2011, tangible personal property
purchased
from an Illinois | ||||||
10 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
11 | activities in Illinois who will, upon receipt of the property | ||||||
12 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
13 | the purpose of subsequently
transporting it outside this State | ||||||
14 | for use or consumption thereafter solely
outside this State or | ||||||
15 | (ii) for the purpose of being processed, fabricated, or
| ||||||
16 | manufactured into, attached to, or incorporated into other | ||||||
17 | tangible personal
property to be transported outside this State | ||||||
18 | and thereafter used or consumed
solely outside this State. The | ||||||
19 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
20 | accordance with the Illinois Administrative Procedure Act, | ||||||
21 | issue a
permit to any taxpayer in good standing with the | ||||||
22 | Department who is eligible for
the exemption under this | ||||||
23 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
24 | shall authorize the holder, to the extent and
in the manner | ||||||
25 | specified in the rules adopted under this Act, to purchase
| ||||||
26 | tangible personal property from a retailer exempt from the |
| |||||||
| |||||||
1 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
2 | necessary books and records to
substantiate the use and | ||||||
3 | consumption of all such tangible personal property
outside of | ||||||
4 | the State of Illinois.
| ||||||
5 | (27) Beginning January 1, 2008, tangible personal property | ||||||
6 | used in the construction or maintenance of a community water | ||||||
7 | supply, as defined under Section 3.145 of the Environmental | ||||||
8 | Protection Act, that is operated by a not-for-profit | ||||||
9 | corporation that holds a valid water supply permit issued under | ||||||
10 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
11 | exempt from the provisions of Section 3-55.
| ||||||
12 | (28) Beginning on the effective date of this amendatory Act | ||||||
13 | of the 96th General Assembly, equipment used at
an energy | ||||||
14 | facility, as that term is defined in Section 1-10 of the | ||||||
15 | Illinois Power Agency Act, located within the State, including | ||||||
16 | replacement parts and equipment and
including equipment | ||||||
17 | purchased for lease, but excluding motor
vehicles required to | ||||||
18 | be registered under the Illinois Vehicle Code. | ||||||
19 | (29) Beginning on the effective date of this amendatory Act | ||||||
20 | of the 96th General Assembly, feedstock used at an energy | ||||||
21 | facility, as that term is defined in Section 1-10 of the | ||||||
22 | Illinois Power Agency Act, located in this State. | ||||||
23 | (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-538, | ||||||
24 | eff. 1-1-08; 95-876, eff. 8-21-08.)
| ||||||
25 | Section 15-40. The Retailers' Occupation Tax Act is amended |
| |||||||
| |||||||
1 | by changing Sections 2-5 as follows:
| ||||||
2 | (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| ||||||
3 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
4 | sale of
the following tangible personal property are exempt | ||||||
5 | from the tax imposed
by this Act:
| ||||||
6 | (1) Farm chemicals.
| ||||||
7 | (2) Farm machinery and equipment, both new and used, | ||||||
8 | including that
manufactured on special order, certified by the | ||||||
9 | purchaser to be used
primarily for production agriculture or | ||||||
10 | State or federal agricultural
programs, including individual | ||||||
11 | replacement parts for the machinery and
equipment, including | ||||||
12 | machinery and equipment purchased for lease,
and including | ||||||
13 | implements of husbandry defined in Section 1-130 of
the | ||||||
14 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
15 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
16 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
17 | but
excluding other motor vehicles required to be registered | ||||||
18 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
19 | hoop houses used for propagating, growing, or
overwintering | ||||||
20 | plants shall be considered farm machinery and equipment under
| ||||||
21 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
22 | shall include units sold
separately from a motor vehicle | ||||||
23 | required to be licensed and units sold mounted
on a motor | ||||||
24 | vehicle required to be licensed, if the selling price of the | ||||||
25 | tender
is separately stated.
|
| |||||||
| |||||||
1 | Farm machinery and equipment shall include precision | ||||||
2 | farming equipment
that is
installed or purchased to be | ||||||
3 | installed on farm machinery and equipment
including, but not | ||||||
4 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
5 | or spreaders.
Precision farming equipment includes, but is not | ||||||
6 | limited to,
soil testing sensors, computers, monitors, | ||||||
7 | software, global positioning
and mapping systems, and other | ||||||
8 | such equipment.
| ||||||
9 | Farm machinery and equipment also includes computers, | ||||||
10 | sensors, software, and
related equipment used primarily in the
| ||||||
11 | computer-assisted operation of production agriculture | ||||||
12 | facilities, equipment,
and activities such as, but
not limited | ||||||
13 | to,
the collection, monitoring, and correlation of
animal and | ||||||
14 | crop data for the purpose of
formulating animal diets and | ||||||
15 | agricultural chemicals. This item (7) is exempt
from the | ||||||
16 | provisions of
Section 2-70.
| ||||||
17 | (3) Until July 1, 2003, distillation machinery and | ||||||
18 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
19 | retailer, certified by the user to be used
only for the | ||||||
20 | production of ethyl alcohol that will be used for consumption
| ||||||
21 | as motor fuel or as a component of motor fuel for the personal | ||||||
22 | use of the
user, and not subject to sale or resale.
| ||||||
23 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
24 | 2004, graphic arts machinery and equipment, including
repair | ||||||
25 | and
replacement parts, both new and used, and including that | ||||||
26 | manufactured on
special order or purchased for lease, certified |
| |||||||
| |||||||
1 | by the purchaser to be used
primarily for graphic arts | ||||||
2 | production.
Equipment includes chemicals or
chemicals acting | ||||||
3 | as catalysts but only if
the chemicals or chemicals acting as | ||||||
4 | catalysts effect a direct and immediate
change upon a
graphic | ||||||
5 | arts product.
| ||||||
6 | (5) A motor vehicle of the first division, a motor vehicle | ||||||
7 | of the second division that is a self contained motor vehicle | ||||||
8 | designed or permanently converted to provide living quarters | ||||||
9 | for recreational, camping, or travel use, with direct walk | ||||||
10 | through access to the living quarters from the driver's seat, | ||||||
11 | or a motor vehicle of the second division that is of the van | ||||||
12 | configuration designed for the transportation of not less than | ||||||
13 | 7 nor more than 16 passengers, as defined in Section 1-146 of | ||||||
14 | the Illinois Vehicle Code, that is used for automobile renting, | ||||||
15 | as defined in the Automobile Renting Occupation and Use Tax | ||||||
16 | Act. This paragraph is exempt from
the provisions of Section | ||||||
17 | 2-70.
| ||||||
18 | (6) Personal property sold by a teacher-sponsored student | ||||||
19 | organization
affiliated with an elementary or secondary school | ||||||
20 | located in Illinois.
| ||||||
21 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
22 | selling price of
a passenger car the
sale of which is subject | ||||||
23 | to the Replacement Vehicle Tax.
| ||||||
24 | (8) Personal property sold to an Illinois county fair | ||||||
25 | association for
use in conducting, operating, or promoting the | ||||||
26 | county fair.
|
| |||||||
| |||||||
1 | (9) Personal property sold to a not-for-profit arts
or | ||||||
2 | cultural organization that establishes, by proof required by | ||||||
3 | the Department
by
rule, that it has received an exemption under | ||||||
4 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
5 | organized and operated primarily for the
presentation
or | ||||||
6 | support of arts or cultural programming, activities, or | ||||||
7 | services. These
organizations include, but are not limited to, | ||||||
8 | music and dramatic arts
organizations such as symphony | ||||||
9 | orchestras and theatrical groups, arts and
cultural service | ||||||
10 | organizations, local arts councils, visual arts organizations,
| ||||||
11 | and media arts organizations.
On and after the effective date | ||||||
12 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
13 | an entity otherwise eligible for this exemption shall not
make | ||||||
14 | tax-free purchases unless it has an active identification | ||||||
15 | number issued by
the Department.
| ||||||
16 | (10) Personal property sold by a corporation, society, | ||||||
17 | association,
foundation, institution, or organization, other | ||||||
18 | than a limited liability
company, that is organized and | ||||||
19 | operated as a not-for-profit service enterprise
for the benefit | ||||||
20 | of persons 65 years of age or older if the personal property
| ||||||
21 | was not purchased by the enterprise for the purpose of resale | ||||||
22 | by the
enterprise.
| ||||||
23 | (11) Personal property sold to a governmental body, to a | ||||||
24 | corporation,
society, association, foundation, or institution | ||||||
25 | organized and operated
exclusively for charitable, religious, | ||||||
26 | or educational purposes, or to a
not-for-profit corporation, |
| |||||||
| |||||||
1 | society, association, foundation, institution,
or organization | ||||||
2 | that has no compensated officers or employees and that is
| ||||||
3 | organized and operated primarily for the recreation of persons | ||||||
4 | 55 years of
age or older. A limited liability company may | ||||||
5 | qualify for the exemption under
this paragraph only if the | ||||||
6 | limited liability company is organized and operated
| ||||||
7 | exclusively for educational purposes. On and after July 1, | ||||||
8 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
9 | shall make tax-free purchases
unless it has an active | ||||||
10 | identification number issued by the Department.
| ||||||
11 | (12) Tangible personal property sold to
interstate | ||||||
12 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
13 | commerce or to lessors under leases of
one year or longer | ||||||
14 | executed or in effect at the time of purchase by
interstate | ||||||
15 | carriers for hire for use as rolling stock moving in interstate
| ||||||
16 | commerce and equipment operated by a telecommunications | ||||||
17 | provider, licensed as a
common carrier by the Federal | ||||||
18 | Communications Commission, which is permanently
installed in | ||||||
19 | or affixed to aircraft moving in interstate commerce.
| ||||||
20 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
21 | motor vehicles of the second division
with a gross vehicle | ||||||
22 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
23 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
24 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
25 | through June 30, 2005, the use in this State of motor vehicles | ||||||
26 | of the second division: (i) with a gross vehicle weight rating |
| |||||||
| |||||||
1 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
2 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
3 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
4 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
5 | applies to repair and replacement parts added
after the
initial | ||||||
6 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
7 | in a
manner that
would qualify for the rolling stock exemption | ||||||
8 | otherwise provided for in this
Act. For purposes of this | ||||||
9 | paragraph, "used for commercial purposes" means the | ||||||
10 | transportation of persons or property in furtherance of any | ||||||
11 | commercial or industrial enterprise whether for-hire or not.
| ||||||
12 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
13 | tangible personal property that is utilized by interstate | ||||||
14 | carriers for
hire for use as rolling stock moving in interstate | ||||||
15 | commerce
and equipment operated by a telecommunications | ||||||
16 | provider, licensed as a
common carrier by the Federal | ||||||
17 | Communications Commission, which is
permanently installed in | ||||||
18 | or affixed to aircraft moving in interstate commerce.
| ||||||
19 | (14) Machinery and equipment that will be used by the | ||||||
20 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
21 | process of manufacturing or
assembling tangible personal | ||||||
22 | property for wholesale or retail sale or
lease, whether the | ||||||
23 | sale or lease is made directly by the manufacturer or by
some | ||||||
24 | other person, whether the materials used in the process are | ||||||
25 | owned by
the manufacturer or some other person, or whether the | ||||||
26 | sale or lease is made
apart from or as an incident to the |
| |||||||
| |||||||
1 | seller's engaging in the service
occupation of producing | ||||||
2 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
3 | items of no commercial value on special order for a particular
| ||||||
4 | purchaser.
| ||||||
5 | (15) Proceeds of mandatory service charges separately | ||||||
6 | stated on
customers' bills for purchase and consumption of food | ||||||
7 | and beverages, to the
extent that the proceeds of the service | ||||||
8 | charge are in fact turned over as
tips or as a substitute for | ||||||
9 | tips to the employees who participate directly
in preparing, | ||||||
10 | serving, hosting or cleaning up the food or beverage function
| ||||||
11 | with respect to which the service charge is imposed.
| ||||||
12 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
13 | is prohibited by federal law from charging tax to the | ||||||
14 | purchaser.
| ||||||
15 | (17) Tangible personal property sold to a common carrier by | ||||||
16 | rail or
motor that
receives the physical possession of the | ||||||
17 | property in Illinois and that
transports the property, or | ||||||
18 | shares with another common carrier in the
transportation of the | ||||||
19 | property, out of Illinois on a standard uniform bill
of lading | ||||||
20 | showing the seller of the property as the shipper or consignor | ||||||
21 | of
the property to a destination outside Illinois, for use | ||||||
22 | outside Illinois.
| ||||||
23 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
24 | coinage
issued by the State of Illinois, the government of the | ||||||
25 | United States of
America, or the government of any foreign | ||||||
26 | country, and bullion.
|
| |||||||
| |||||||
1 | (19) Until July 1 2003, and beginning again on the | ||||||
2 | effective date of this amendatory Act of the 96th General | ||||||
3 | Assembly and thereafter, oil field exploration, drilling, and | ||||||
4 | production
equipment, including
(i) rigs and parts of rigs, | ||||||
5 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
6 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
7 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
8 | individual replacement part for oil field exploration,
| ||||||
9 | drilling, and production equipment, and (vi) machinery and | ||||||
10 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
11 | required to be registered under the Illinois
Vehicle Code.
| ||||||
12 | (20) Photoprocessing machinery and equipment, including | ||||||
13 | repair and
replacement parts, both new and used, including that | ||||||
14 | manufactured on
special order, certified by the purchaser to be | ||||||
15 | used primarily for
photoprocessing, and including | ||||||
16 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
17 | (21) Until July 1, 2003, and beginning again on the | ||||||
18 | effective date of this amendatory Act of the 96th General | ||||||
19 | Assembly and thereafter, coal exploration, mining, offhighway | ||||||
20 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
21 | including
replacement parts and equipment, and including
| ||||||
22 | equipment purchased for lease, but excluding motor vehicles | ||||||
23 | required to be
registered under the Illinois Vehicle Code. For | ||||||
24 | purposes of this item (21), equipment includes roof bolts and | ||||||
25 | explosives.
| ||||||
26 | (22) Fuel and petroleum products sold to or used by an air |
| |||||||
| |||||||
1 | carrier,
certified by the carrier to be used for consumption, | ||||||
2 | shipment, or storage
in the conduct of its business as an air | ||||||
3 | common carrier, for a flight
destined for or returning from a | ||||||
4 | location or locations
outside the United States without regard | ||||||
5 | to previous or subsequent domestic
stopovers.
| ||||||
6 | (23) A transaction in which the purchase order is received | ||||||
7 | by a florist
who is located outside Illinois, but who has a | ||||||
8 | florist located in Illinois
deliver the property to the | ||||||
9 | purchaser or the purchaser's donee in Illinois.
| ||||||
10 | (24) Fuel consumed or used in the operation of ships, | ||||||
11 | barges, or vessels
that are used primarily in or for the | ||||||
12 | transportation of property or the
conveyance of persons for | ||||||
13 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
14 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
15 | it is afloat upon that bordering river.
| ||||||
16 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
17 | motor vehicle sold in this State to a nonresident even though | ||||||
18 | the
motor vehicle is delivered to the nonresident in this | ||||||
19 | State, if the motor
vehicle is not to be titled in this State, | ||||||
20 | and if a drive-away permit
is issued to the motor vehicle as | ||||||
21 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
22 | the nonresident purchaser has vehicle registration
plates to | ||||||
23 | transfer to the motor vehicle upon returning to his or her home
| ||||||
24 | state. The issuance of the drive-away permit or having
the
| ||||||
25 | out-of-state registration plates to be transferred is prima | ||||||
26 | facie evidence
that the motor vehicle will not be titled in |
| |||||||
| |||||||
1 | this State.
| ||||||
2 | (25-5) The exemption under item (25) does not apply if the | ||||||
3 | state in which the motor vehicle will be titled does not allow | ||||||
4 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
5 | in that state to an Illinois resident but titled in Illinois. | ||||||
6 | The tax collected under this Act on the sale of a motor vehicle | ||||||
7 | in this State to a resident of another state that does not | ||||||
8 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
9 | to the state's rate of tax on taxable property in the state in | ||||||
10 | which the purchaser is a resident, except that the tax shall | ||||||
11 | not exceed the tax that would otherwise be imposed under this | ||||||
12 | Act. At the time of the sale, the purchaser shall execute a | ||||||
13 | statement, signed under penalty of perjury, of his or her | ||||||
14 | intent to title the vehicle in the state in which the purchaser | ||||||
15 | is a resident within 30 days after the sale and of the fact of | ||||||
16 | the payment to the State of Illinois of tax in an amount | ||||||
17 | equivalent to the state's rate of tax on taxable property in | ||||||
18 | his or her state of residence and shall submit the statement to | ||||||
19 | the appropriate tax collection agency in his or her state of | ||||||
20 | residence. In addition, the retailer must retain a signed copy | ||||||
21 | of the statement in his or her records. Nothing in this item | ||||||
22 | shall be construed to require the removal of the vehicle from | ||||||
23 | this state following the filing of an intent to title the | ||||||
24 | vehicle in the purchaser's state of residence if the purchaser | ||||||
25 | titles the vehicle in his or her state of residence within 30 | ||||||
26 | days after the date of sale. The tax collected under this Act |
| |||||||
| |||||||
1 | in accordance with this item (25-5) shall be proportionately | ||||||
2 | distributed as if the tax were collected at the 6.25% general | ||||||
3 | rate imposed under this Act.
| ||||||
4 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
5 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
6 | the Illinois Aeronautics Act, if all of the following | ||||||
7 | conditions are met: | ||||||
8 | (1) the aircraft leaves this State within 15 days after | ||||||
9 | the later of either the issuance of the final billing for | ||||||
10 | the sale of the aircraft, or the authorized approval for | ||||||
11 | return to service, completion of the maintenance record | ||||||
12 | entry, and completion of the test flight and ground test | ||||||
13 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
14 | (2) the aircraft is not based or registered in this | ||||||
15 | State after the sale of the aircraft; and | ||||||
16 | (3) the seller retains in his or her books and records | ||||||
17 | and provides to the Department a signed and dated | ||||||
18 | certification from the purchaser, on a form prescribed by | ||||||
19 | the Department, certifying that the requirements of this | ||||||
20 | item (25-7) are met. The certificate must also include the | ||||||
21 | name and address of the purchaser, the address of the | ||||||
22 | location where the aircraft is to be titled or registered, | ||||||
23 | the address of the primary physical location of the | ||||||
24 | aircraft, and other information that the Department may | ||||||
25 | reasonably require. | ||||||
26 | For purposes of this item (25-7): |
| |||||||
| |||||||
1 | "Based in this State" means hangared, stored, or otherwise | ||||||
2 | used, excluding post-sale customizations as defined in this | ||||||
3 | Section, for 10 or more days in each 12-month period | ||||||
4 | immediately following the date of the sale of the aircraft. | ||||||
5 | "Registered in this State" means an aircraft registered | ||||||
6 | with the Department of Transportation, Aeronautics Division, | ||||||
7 | or titled or registered with the Federal Aviation | ||||||
8 | Administration to an address located in this State. | ||||||
9 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
10 | Section 2-70.
| ||||||
11 | (26) Semen used for artificial insemination of livestock | ||||||
12 | for direct
agricultural production.
| ||||||
13 | (27) Horses, or interests in horses, registered with and | ||||||
14 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
15 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
16 | Horse Association, United States
Trotting Association, or | ||||||
17 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
18 | racing for prizes. This item (27) is exempt from the provisions | ||||||
19 | of Section 2-70, and the exemption provided for under this item | ||||||
20 | (27) applies for all periods beginning May 30, 1995, but no | ||||||
21 | claim for credit or refund is allowed on or after January 1, | ||||||
22 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
23 | paid during the period beginning May 30, 2000 and ending on | ||||||
24 | January 1, 2008 (the effective date of Public Act 95-88)
.
| ||||||
25 | (28) Computers and communications equipment utilized for | ||||||
26 | any
hospital
purpose
and equipment used in the diagnosis,
|
| |||||||
| |||||||
1 | analysis, or treatment of hospital patients sold to a lessor | ||||||
2 | who leases the
equipment, under a lease of one year or longer | ||||||
3 | executed or in effect at the
time of the purchase, to a
| ||||||
4 | hospital
that has been issued an active tax exemption | ||||||
5 | identification number by the
Department under Section 1g of | ||||||
6 | this Act.
| ||||||
7 | (29) Personal property sold to a lessor who leases the
| ||||||
8 | property, under a
lease of one year or longer executed or in | ||||||
9 | effect at the time of the purchase,
to a governmental body
that | ||||||
10 | has been issued an active tax exemption identification number | ||||||
11 | by the
Department under Section 1g of this Act.
| ||||||
12 | (30) Beginning with taxable years ending on or after | ||||||
13 | December
31, 1995
and
ending with taxable years ending on or | ||||||
14 | before December 31, 2004,
personal property that is
donated for | ||||||
15 | disaster relief to be used in a State or federally declared
| ||||||
16 | disaster area in Illinois or bordering Illinois by a | ||||||
17 | manufacturer or retailer
that is registered in this State to a | ||||||
18 | corporation, society, association,
foundation, or institution | ||||||
19 | that has been issued a sales tax exemption
identification | ||||||
20 | number by the Department that assists victims of the disaster
| ||||||
21 | who reside within the declared disaster area.
| ||||||
22 | (31) Beginning with taxable years ending on or after | ||||||
23 | December
31, 1995 and
ending with taxable years ending on or | ||||||
24 | before December 31, 2004, personal
property that is used in the | ||||||
25 | performance of infrastructure repairs in this
State, including | ||||||
26 | but not limited to municipal roads and streets, access roads,
|
| |||||||
| |||||||
1 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
2 | line extensions,
water distribution and purification | ||||||
3 | facilities, storm water drainage and
retention facilities, and | ||||||
4 | sewage treatment facilities, resulting from a State
or | ||||||
5 | federally declared disaster in Illinois or bordering Illinois | ||||||
6 | when such
repairs are initiated on facilities located in the | ||||||
7 | declared disaster area
within 6 months after the disaster.
| ||||||
8 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
9 | "game breeding
and
hunting preserve area" or an "exotic game | ||||||
10 | hunting area" as those terms are used
in the
Wildlife Code or | ||||||
11 | at a hunting enclosure approved through rules adopted by the
| ||||||
12 | Department of Natural Resources. This paragraph is exempt from | ||||||
13 | the provisions
of
Section 2-70.
| ||||||
14 | (33) A motor vehicle, as that term is defined in Section | ||||||
15 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
16 | corporation, limited liability
company, society, association, | ||||||
17 | foundation, or institution that is determined by
the Department | ||||||
18 | to be organized and operated exclusively for educational
| ||||||
19 | purposes. For purposes of this exemption, "a corporation, | ||||||
20 | limited liability
company, society, association, foundation, | ||||||
21 | or institution organized and
operated
exclusively for | ||||||
22 | educational purposes" means all tax-supported public schools,
| ||||||
23 | private schools that offer systematic instruction in useful | ||||||
24 | branches of
learning by methods common to public schools and | ||||||
25 | that compare favorably in
their scope and intensity with the | ||||||
26 | course of study presented in tax-supported
schools, and |
| |||||||
| |||||||
1 | vocational or technical schools or institutes organized and
| ||||||
2 | operated exclusively to provide a course of study of not less | ||||||
3 | than 6 weeks
duration and designed to prepare individuals to | ||||||
4 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
5 | industrial, business, or commercial
occupation.
| ||||||
6 | (34) Beginning January 1, 2000, personal property, | ||||||
7 | including food, purchased
through fundraising events for the | ||||||
8 | benefit of a public or private elementary or
secondary school, | ||||||
9 | a group of those schools, or one or more school districts if
| ||||||
10 | the events are sponsored by an entity recognized by the school | ||||||
11 | district that
consists primarily of volunteers and includes | ||||||
12 | parents and teachers of the
school children. This paragraph | ||||||
13 | does not apply to fundraising events (i) for
the benefit of | ||||||
14 | private home instruction or (ii) for which the fundraising
| ||||||
15 | entity purchases the personal property sold at the events from | ||||||
16 | another
individual or entity that sold the property for the | ||||||
17 | purpose of resale by the
fundraising entity and that profits | ||||||
18 | from the sale to the fundraising entity.
This paragraph is | ||||||
19 | exempt from the provisions of Section 2-70.
| ||||||
20 | (35) Beginning January 1, 2000 and through December 31, | ||||||
21 | 2001, new or used
automatic vending machines that prepare and | ||||||
22 | serve hot food and beverages,
including coffee, soup, and other | ||||||
23 | items, and replacement parts for these
machines. Beginning | ||||||
24 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
25 | for machines used in
commercial, coin-operated amusement and | ||||||
26 | vending business if a use or occupation
tax is paid on the |
| |||||||
| |||||||
1 | gross receipts derived from the use of the commercial,
| ||||||
2 | coin-operated amusement and vending machines. This paragraph | ||||||
3 | is exempt from
the provisions of Section 2-70.
| ||||||
4 | (35-5) Beginning August 23, 2001 and through June 30, 2011, | ||||||
5 | food for human consumption that is to be consumed off
the | ||||||
6 | premises where it is sold (other than alcoholic beverages, soft | ||||||
7 | drinks,
and food that has been prepared for immediate | ||||||
8 | consumption) and prescription
and nonprescription medicines, | ||||||
9 | drugs, medical appliances, and insulin, urine
testing | ||||||
10 | materials, syringes, and needles used by diabetics, for human | ||||||
11 | use, when
purchased for use by a person receiving medical | ||||||
12 | assistance under Article 5 of
the Illinois Public Aid Code who | ||||||
13 | resides in a licensed long-term care facility,
as defined in | ||||||
14 | the Nursing Home Care Act.
| ||||||
15 | (36) Beginning August 2, 2001, computers and | ||||||
16 | communications equipment
utilized for any hospital purpose and | ||||||
17 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
18 | hospital patients sold to a lessor who leases the
equipment, | ||||||
19 | under a lease of one year or longer executed or in effect at | ||||||
20 | the
time of the purchase, to a hospital that has been issued an | ||||||
21 | active tax
exemption identification number by the Department | ||||||
22 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
23 | provisions of Section 2-70.
| ||||||
24 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
25 | lessor who
leases the property, under a lease of one year or | ||||||
26 | longer executed or in effect
at the time of the purchase, to a |
| |||||||
| |||||||
1 | governmental body that has been issued an
active tax exemption | ||||||
2 | identification number by the Department under Section 1g
of | ||||||
3 | this Act. This paragraph is exempt from the provisions of | ||||||
4 | Section 2-70.
| ||||||
5 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
6 | 2011, tangible personal property purchased
from an Illinois | ||||||
7 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
8 | activities in Illinois who will, upon receipt of the property | ||||||
9 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
10 | the purpose of subsequently
transporting it outside this State | ||||||
11 | for use or consumption thereafter solely
outside this State or | ||||||
12 | (ii) for the purpose of being processed, fabricated, or
| ||||||
13 | manufactured into, attached to, or incorporated into other | ||||||
14 | tangible personal
property to be transported outside this State | ||||||
15 | and thereafter used or consumed
solely outside this State. The | ||||||
16 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
17 | accordance with the Illinois Administrative Procedure Act, | ||||||
18 | issue a
permit to any taxpayer in good standing with the | ||||||
19 | Department who is eligible for
the exemption under this | ||||||
20 | paragraph (38). The permit issued under
this paragraph (38) | ||||||
21 | shall authorize the holder, to the extent and
in the manner | ||||||
22 | specified in the rules adopted under this Act, to purchase
| ||||||
23 | tangible personal property from a retailer exempt from the | ||||||
24 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
25 | necessary books and records to
substantiate the use and | ||||||
26 | consumption of all such tangible personal property
outside of |
| |||||||
| |||||||
1 | the State of Illinois.
| ||||||
2 | (39) Beginning January 1, 2008, tangible personal property | ||||||
3 | used in the construction or maintenance of a community water | ||||||
4 | supply, as defined under Section 3.145 of the Environmental | ||||||
5 | Protection Act, that is operated by a not-for-profit | ||||||
6 | corporation that holds a valid water supply permit issued under | ||||||
7 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
8 | exempt from the provisions of Section 2-70.
| ||||||
9 | (40) Beginning on the effective date of this amendatory Act | ||||||
10 | of the 96th General Assembly, equipment used at
an energy | ||||||
11 | facility, as that term is defined in Section 1-10 of the | ||||||
12 | Illinois Power Agency Act, located within the State, including | ||||||
13 | replacement parts and equipment and
including equipment | ||||||
14 | purchased for lease, but excluding motor
vehicles required to | ||||||
15 | be registered under the Illinois Vehicle Code. | ||||||
16 | (41) Beginning on the effective date of this amendatory Act | ||||||
17 | of the 96th General Assembly, feedstock used at an energy | ||||||
18 | facility, as that term is defined in Section 1-10 of the | ||||||
19 | Illinois Power Agency Act, located in this State. | ||||||
20 | (Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-233, | ||||||
21 | eff. 8-16-07; 95-304, eff. 8-20-07; 95-538, eff. 1-1-08; | ||||||
22 | 95-707, eff. 1-11-08; 95-876, eff. 8-21-08.)
| ||||||
23 | Section 15-43. The Property Tax Code is amended by adding | ||||||
24 | Section 10-203 as follows: |
| |||||||
| |||||||
1 | (35 ILCS 200/10-203 new)
| ||||||
2 | Sec. 10-203. Real property tax; energy facilities. Any real | ||||||
3 | property used by an energy facility, as that term is defined in | ||||||
4 | Section 1-10 of the Illinois Power Agency Act, may be the | ||||||
5 | subject of a real property tax assessment voluntarily entered | ||||||
6 | into between the taxpayer and thee taxing districts in which | ||||||
7 | the property is situated. Governing bodies and other | ||||||
8 | appropriate authorities, including county and State board or | ||||||
9 | officials, may be parties to an agreement. Any agreement may | ||||||
10 | provide that an assessment of the real property subject to the | ||||||
11 | agreement, determined in accordance with applicable valuation | ||||||
12 | procedures of this Code, be fixed for a term of years, | ||||||
13 | beginning with the assessment date of the year in which the | ||||||
14 | energy facility begins commercial operations. An agreement may | ||||||
15 | be for a term of years up to, but not exceeding, 20 years. The | ||||||
16 | agreement may also provide that the parties agree not to | ||||||
17 | challenge the assessment as provided in the agreement. | ||||||
18 | If an agreement is entered into between the parties after | ||||||
19 | the assessment date of the year in which the energy facility | ||||||
20 | begins commercial operations, then the agreement shall not | ||||||
21 | provide for a revision of assessment of the property subject to | ||||||
22 | the agreement for any years prior to the year in which the | ||||||
23 | agreement was entered into by the parties. An agreement may | ||||||
24 | also provide that the parties agree not to initiate revision of | ||||||
25 | assessments of property subject to the agreement for prior | ||||||
26 | assessment years not subject to the agreement for reasons |
| |||||||
| |||||||
1 | related to the entering into an agreement.
| ||||||
2 | Section 15-45. The Environmental Protection Act is amended | ||||||
3 | by adding Section 28.7 as follows: | ||||||
4 | (415 ILCS 5/28.7 new) | ||||||
5 | Sec. 28.7. Expedited process. The rules of the Agency and | ||||||
6 | Board must include a process for expediting the issuance of | ||||||
7 | permits and licenses for projects at energy facilities, as that | ||||||
8 | term is used in Section 1-10 the Illinois Power Agency Act. The | ||||||
9 | Agency and Board may engage the experts and additional | ||||||
10 | resources that are reasonably necessary for implementing this | ||||||
11 | process. An applicant must request the use of an expedited | ||||||
12 | process, and any additional costs for using that process shall | ||||||
13 | be borne by the applicant. | ||||||
14 | Section 15-50. The Eminent Domain Act is amended by | ||||||
15 | changing Sections 5-5-5 and 15-5-5 as follows: | ||||||
16 | (735 ILCS 30/5-5-5)
| ||||||
17 | Sec. 5-5-5. Exercise of the power of eminent domain; public | ||||||
18 | use; blight. | ||||||
19 | (a) In addition to all other limitations and requirements, | ||||||
20 | a condemning authority may not take or damage property by the | ||||||
21 | exercise of the power of eminent domain unless it is for a | ||||||
22 | public use, as set forth in this Section. |
| |||||||
| |||||||
1 | (a-5) Subsections (b), (c), (d), (e), and (f) of this | ||||||
2 | Section do not apply to the acquisition of property under the | ||||||
3 | O'Hare Modernization Act. A condemning authority may exercise | ||||||
4 | the power of eminent domain for the acquisition or damaging of | ||||||
5 | property under the O'Hare Modernization Act as provided for by | ||||||
6 | law in effect prior to the effective date of this Act. | ||||||
7 | (a-10) Subsections (b), (c), (d), (e), and (f) of this | ||||||
8 | Section do not apply to the acquisition or damaging of property | ||||||
9 | in furtherance of the goals and objectives of an existing tax | ||||||
10 | increment allocation redevelopment plan. A condemning | ||||||
11 | authority may exercise the power of eminent domain for the | ||||||
12 | acquisition of property in furtherance of an existing tax | ||||||
13 | increment allocation redevelopment plan as provided for by law | ||||||
14 | in effect prior to the effective date of this Act. | ||||||
15 | As used in this subsection, "existing tax increment | ||||||
16 | allocation redevelopment plan" means a redevelopment plan that | ||||||
17 | was adopted under the Tax Increment Allocation Redevelopment | ||||||
18 | Act (Article 11, Division 74.4 of the Illinois Municipal Code) | ||||||
19 | prior to April 15, 2006 and for which property assembly costs | ||||||
20 | were, before that date, included as a budget line item in the | ||||||
21 | plan or described in the narrative portion of the plan as part | ||||||
22 | of the redevelopment project, but does not include (i) any | ||||||
23 | additional area added to the redevelopment project area on or | ||||||
24 | after April 15, 2006, (ii) any subsequent extension of the | ||||||
25 | completion date of a redevelopment plan beyond the estimated | ||||||
26 | completion date established in that plan prior to April 15, |
| |||||||
| |||||||
1 | 2006, (iii) any acquisition of property in a conservation area | ||||||
2 | for which the condemnation complaint is filed more than 12 | ||||||
3 | years after the effective date of this Act, or (iv) any | ||||||
4 | acquisition of property in an industrial park conservation | ||||||
5 | area. | ||||||
6 | As used in this subsection, "conservation area" and | ||||||
7 | "industrial park conservation area" have the same meanings as | ||||||
8 | under Section 11-74.4-3 of the Illinois Municipal Code. | ||||||
9 | (b) If the exercise of eminent domain authority is to | ||||||
10 | acquire property for public ownership and control, then the | ||||||
11 | condemning authority must prove that (i) the acquisition of the | ||||||
12 | property is necessary for a public purpose and (ii) the | ||||||
13 | acquired property will be owned and controlled by the | ||||||
14 | condemning authority or another governmental entity. | ||||||
15 | (c) Except when the acquisition is governed by subsection | ||||||
16 | (b) or is primarily for one of the purposes specified in | ||||||
17 | subsection (d), (e), or (f) and the condemning authority elects | ||||||
18 | to proceed under one of those subsections, if the exercise of | ||||||
19 | eminent domain authority is to acquire property for private | ||||||
20 | ownership or control, or both, then the condemning authority | ||||||
21 | must prove by clear and convincing evidence that the | ||||||
22 | acquisition of the property for private ownership or control is | ||||||
23 | (i) primarily for the benefit, use, or enjoyment of the public | ||||||
24 | and (ii) necessary for a public purpose. | ||||||
25 | An acquisition of property primarily for the purpose of the | ||||||
26 | elimination of blight is rebuttably presumed to be for a public |
| |||||||
| |||||||
1 | purpose and primarily for the benefit, use, or enjoyment of the | ||||||
2 | public under this subsection. | ||||||
3 | Any challenge to the existence of blighting factors alleged | ||||||
4 | in a complaint to condemn under this subsection shall be raised | ||||||
5 | within 6 months of the filing date of the complaint to condemn, | ||||||
6 | and if not raised within that time the right to challenge the | ||||||
7 | existence of those blighting factors shall be deemed waived. | ||||||
8 | Evidence that the Illinois Commerce Commission has granted | ||||||
9 | a certificate or otherwise made a finding of public convenience | ||||||
10 | and necessity for an acquisition of property (or any right or | ||||||
11 | interest in property) for private ownership or control | ||||||
12 | (including, without limitation, an acquisition for which the | ||||||
13 | use of eminent domain is authorized under the Public Utilities | ||||||
14 | Act, the Telephone Company Act, or the Electric Supplier Act) | ||||||
15 | to be used for utility purposes creates a rebuttable | ||||||
16 | presumption that such acquisition of that property (or right or | ||||||
17 | interest in property) is (i) primarily for the benefit, use, or | ||||||
18 | enjoyment of the public and (ii) necessary for a public | ||||||
19 | purpose. | ||||||
20 | In the case of an acquisition of property (or any right or | ||||||
21 | interest in property) for private ownership or control to be | ||||||
22 | used for utility, pipeline, or railroad purposes for which no | ||||||
23 | certificate or finding of public convenience and necessity by | ||||||
24 | the Illinois Commerce Commission is required, evidence that the | ||||||
25 | acquisition is one for which the use of eminent domain is | ||||||
26 | authorized under one of the following laws creates a rebuttable |
| |||||||
| |||||||
1 | presumption that the acquisition of that property (or right or | ||||||
2 | interest in property) is (i) primarily for the benefit, use, or | ||||||
3 | enjoyment of the public and (ii) necessary for a public | ||||||
4 | purpose: | ||||||
5 | (1) the Public Utilities Act, | ||||||
6 | (2) the Telephone Company Act, | ||||||
7 | (3) the Electric Supplier Act, | ||||||
8 | (4) the Railroad Terminal Authority Act, | ||||||
9 | (5) the Grand Avenue Railroad Relocation Authority | ||||||
10 | Act, | ||||||
11 | (6) the West Cook Railroad Relocation and Development | ||||||
12 | Authority Act, | ||||||
13 | (7) Section 4-505 of the Illinois Highway Code, | ||||||
14 | (8) Section 17 or 18 of the Railroad Incorporation Act, | ||||||
15 | (9) Section 18c-7501 of the Illinois Vehicle Code , or . | ||||||
16 | (10) Section 1-21 of the Illinois Power Agency Act. | ||||||
17 | (d) If the exercise of eminent domain authority is to | ||||||
18 | acquire property for private ownership or control and if the | ||||||
19 | primary basis for the acquisition is the elimination of blight | ||||||
20 | and the condemning authority elects to proceed under this | ||||||
21 | subsection, then the condemning authority must: (i) prove by a | ||||||
22 | preponderance of the evidence that acquisition of the property | ||||||
23 | for private ownership or control is necessary for a public | ||||||
24 | purpose; (ii) prove by a preponderance of the evidence that the | ||||||
25 | property to be acquired is located in an area that is currently | ||||||
26 | designated as a blighted area or conservation area under an |
| |||||||
| |||||||
1 | applicable statute; (iii) if the existence of blight or | ||||||
2 | blighting factors is challenged in an appropriate motion filed | ||||||
3 | within 6 months after the date of filing of the complaint to | ||||||
4 | condemn, prove by a preponderance of the evidence that the | ||||||
5 | required blighting factors existed in the area so designated | ||||||
6 | (but not necessarily in the particular property to be acquired) | ||||||
7 | at the time of the designation under item (ii) or at any time | ||||||
8 | thereafter; and (iv) prove by a preponderance of the evidence | ||||||
9 | at least one of the following: | ||||||
10 | (A) that it has entered into an express written | ||||||
11 | agreement in which a private person or entity agrees to | ||||||
12 | undertake a development project within the blighted area | ||||||
13 | that specifically details the reasons for which the | ||||||
14 | property or rights in that property are necessary for the | ||||||
15 | development project; | ||||||
16 | (B) that the exercise of eminent domain power and the | ||||||
17 | proposed use of the property by the condemning authority | ||||||
18 | are consistent with a regional plan that has been adopted | ||||||
19 | within the past 5 years in accordance with Section 5-14001 | ||||||
20 | of the Counties Code or Section 11-12-6 of the Illinois | ||||||
21 | Municipal Code or with a local land resource management | ||||||
22 | plan adopted under Section 4 of the Local Land Resource | ||||||
23 | Management Planning Act; or | ||||||
24 | (C) that (1) the acquired property will be used in the | ||||||
25 | development of a project that is consistent with the land | ||||||
26 | uses set forth in a comprehensive redevelopment plan |
| |||||||
| |||||||
1 | prepared in accordance with the applicable statute | ||||||
2 | authorizing the condemning authority to exercise the power | ||||||
3 | of eminent domain and is consistent with the goals and | ||||||
4 | purposes of that comprehensive redevelopment plan, and (2) | ||||||
5 | an enforceable written agreement, deed restriction, or | ||||||
6 | similar encumbrance has been or will be executed and | ||||||
7 | recorded against the acquired property to assure that the | ||||||
8 | project and the use of the property remain consistent with | ||||||
9 | those land uses, goals, and purposes for a period of at | ||||||
10 | least 40 years, which execution and recording shall be | ||||||
11 | included as a requirement in any final order entered in the | ||||||
12 | condemnation proceeding. | ||||||
13 | The existence of an ordinance, resolution, or other | ||||||
14 | official act designating an area as blighted is not prima facie | ||||||
15 | evidence of the existence of blight. A finding by the court in | ||||||
16 | a condemnation proceeding that a property or area has not been | ||||||
17 | proven to be blighted does not apply to any other case or | ||||||
18 | undermine the designation of a blighted area or conservation | ||||||
19 | area or the determination of the existence of blight for any | ||||||
20 | other purpose or under any other statute, including without | ||||||
21 | limitation under the Tax Increment Allocation Redevelopment | ||||||
22 | Act (Article 11, Division 74.4 of the Illinois Municipal Code). | ||||||
23 | Any challenge to the existence of blighting factors alleged | ||||||
24 | in a complaint to condemn under this subsection shall be raised | ||||||
25 | within 6 months of the filing date of the complaint to condemn, | ||||||
26 | and if not raised within that time the right to challenge the |
| |||||||
| |||||||
1 | existence of those blighting factors shall be deemed waived. | ||||||
2 | (e) If the exercise of eminent domain authority is to | ||||||
3 | acquire property for private ownership or control and if the | ||||||
4 | primary purpose of the acquisition is one of the purposes | ||||||
5 | specified in item (iii) of this subsection and the condemning | ||||||
6 | authority elects to proceed under this subsection, then the | ||||||
7 | condemning authority must prove by a preponderance of the | ||||||
8 | evidence that: (i) the acquisition of the property is necessary | ||||||
9 | for a public purpose; (ii) an enforceable written agreement, | ||||||
10 | deed restriction, or similar encumbrance has been or will be | ||||||
11 | executed and recorded against the acquired property to assure | ||||||
12 | that the project and the use of the property remain consistent | ||||||
13 | with the applicable purpose specified in item (iii) of this | ||||||
14 | subsection for a period of at least 40 years, which execution | ||||||
15 | and recording shall be included as a requirement in any final | ||||||
16 | order entered in the condemnation proceeding; and (iii) the | ||||||
17 | acquired property will be one of the following:
| ||||||
18 | (1) included in the project site for a residential | ||||||
19 | project, or a
mixed-use project including residential | ||||||
20 | units, where not less than 20% of the residential units in | ||||||
21 | the project are made available, for at least 15 years, by | ||||||
22 | deed
restriction, long-term lease, regulatory agreement, | ||||||
23 | extended use agreement, or a
comparable recorded | ||||||
24 | encumbrance, to low-income households and very low-income | ||||||
25 | households, as defined in Section 3 of
the Illinois | ||||||
26 | Affordable Housing Act; |
| |||||||
| |||||||
1 | (2) used primarily for public airport, road, parking, | ||||||
2 | or mass transportation purposes and sold or leased to a | ||||||
3 | private party in a sale-leaseback, lease-leaseback,
or | ||||||
4 | similar structured financing; | ||||||
5 | (3) owned or used by a public utility or electric | ||||||
6 | cooperative for utility purposes; | ||||||
7 | (4) owned or used by a railroad for
passenger or | ||||||
8 | freight transportation purposes; | ||||||
9 | (5)
sold or leased to a private party that operates a | ||||||
10 | water supply, waste water,
recycling, waste disposal, | ||||||
11 | waste-to-energy, or similar facility; | ||||||
12 | (6) sold or leased
to a not-for-profit corporation | ||||||
13 | whose purposes include the preservation of open
space, the | ||||||
14 | operation of park space, and similar public purposes; | ||||||
15 | (7)
used as a library, museum, or related facility, or | ||||||
16 | as infrastructure related to
such a facility; | ||||||
17 | (8) used by a private party for the
operation of a | ||||||
18 | charter school open to the general public; or
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19 | (9) a historic resource, as defined in Section 3 of the | ||||||
20 | Illinois State Agency Historic Resources Preservation Act, | ||||||
21 | a landmark designated as such under a local ordinance, or a | ||||||
22 | contributing structure within a local landmark district | ||||||
23 | listed on the National Register of Historic Places, that is | ||||||
24 | being acquired for purposes of preservation or | ||||||
25 | rehabilitation. | ||||||
26 | (f) If the exercise of eminent domain authority is to |
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1 | acquire property for public ownership and private control and | ||||||
2 | if the primary purpose of the acquisition is one of the | ||||||
3 | purposes specified in item (iii) of this subsection and the | ||||||
4 | condemning authority elects to proceed under this subsection, | ||||||
5 | then the condemning authority must prove by a preponderance of | ||||||
6 | the evidence that: (i) the acquisition of the property is | ||||||
7 | necessary for a public purpose; (ii) the acquired property will | ||||||
8 | be owned by the condemning authority or another governmental | ||||||
9 | entity; and (iii) the acquired property will be controlled by a | ||||||
10 | private party that operates a
business or facility related to | ||||||
11 | the condemning authority's operation of a university, medical | ||||||
12 | district, hospital, exposition or convention center, mass | ||||||
13 | transportation facility, or airport,
including, but not | ||||||
14 | limited to, a medical clinic, research and development center, | ||||||
15 | food or commercial concession facility, social service | ||||||
16 | facility, maintenance or storage facility, cargo facility,
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17 | rental car facility, bus facility, taxi facility, flight | ||||||
18 | kitchen,
fixed based operation, parking facility, refueling | ||||||
19 | facility, water supply facility, and railroad tracks and
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20 | stations. | ||||||
21 | (g) This Article is a limitation on the exercise of the | ||||||
22 | power of eminent domain, but is not an independent grant of | ||||||
23 | authority to exercise the power of eminent domain.
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24 | (Source: P.A. 94-1055, eff. 1-1-07.) | ||||||
25 | (735 ILCS 30/15-5-5)
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1 | Sec. 15-5-5. Eminent domain powers in ILCS Chapters 5 | ||||||
2 | through 40. The following provisions of law may include express | ||||||
3 | grants of the power to acquire property by condemnation or | ||||||
4 | eminent domain: | ||||||
5 | (5 ILCS 220/3.1); Intergovernmental Cooperation Act; | ||||||
6 | cooperating entities; for Municipal Joint Action Water | ||||||
7 | Agency purposes.
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8 | (5 ILCS 220/3.2); Intergovernmental Cooperation Act; | ||||||
9 | cooperating entities; for Municipal Joint Action Agency | ||||||
10 | purposes. | ||||||
11 | (5 ILCS 585/1); National Forest Land Act; United States of | ||||||
12 | America; for national forests.
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13 | (15 ILCS 330/2); Secretary of State Buildings in Cook County | ||||||
14 | Act; Secretary of State; for office facilities in Cook | ||||||
15 | County.
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16 | (20 ILCS 5/5-675); Civil Administrative Code of Illinois; the | ||||||
17 | Secretary of Transportation, the Director of Natural | ||||||
18 | Resources, and the Director of Central Management | ||||||
19 | Services; for lands, buildings, and grounds for which an | ||||||
20 | appropriation is made by the General Assembly.
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21 | (20 ILCS 620/9); Economic Development Area Tax Increment | ||||||
22 | Allocation Act; municipalities; to achieve the objectives | ||||||
23 | of the economic development project.
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24 | (20 ILCS 685/1); Particle Accelerator Land Acquisition Act; | ||||||
25 | Department of Commerce and Economic Opportunity; for a |
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1 | federal high energy BEV Particle Accelerator.
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2 | (20 ILCS 835/2); State Parks Act; Department of Natural | ||||||
3 | Resources; for State parks.
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4 | (20 ILCS 1110/3); Illinois Coal and Energy Development Bond | ||||||
5 | Act; Department of Commerce and Economic Opportunity; for | ||||||
6 | coal projects.
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7 | (20 ILCS 1920/2.06); Abandoned Mined Lands and Water | ||||||
8 | Reclamation Act; Department of Natural Resources; for | ||||||
9 | reclamation purposes.
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10 | (20 ILCS 1920/2.08); Abandoned Mined Lands and Water | ||||||
11 | Reclamation Act; Department of Natural Resources; for | ||||||
12 | reclamation purposes and for the construction or | ||||||
13 | rehabilitation of housing.
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14 | (20 ILCS 1920/2.11); Abandoned Mined Lands and Water | ||||||
15 | Reclamation Act; Department of Natural Resources; for | ||||||
16 | eliminating hazards.
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17 | (20 ILCS 3105/9.08a); Capital Development Board Act; Capital | ||||||
18 | Development Board; for lands, buildings and grounds for | ||||||
19 | which an appropriation is made by the General Assembly.
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20 | (20 ILCS 3110/5); Building Authority Act; Capital Development | ||||||
21 | Board; for purposes declared by the General Assembly to be | ||||||
22 | in the public interest.
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23 | (20 ILCS 3855/1-21) Illinois Power Agency Act; Illinois Power | ||||||
24 | Agency; for construction, maintenance, and operations of | ||||||
25 | energy facilities, and for the purpose of acquiring | ||||||
26 | easements for the delivery, transportation, and storage of |
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1 | CO 2 . | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | (40 ILCS 5/15-167); Illinois Pension Code; State Universities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Retirement System; for real estate acquired for the use of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | the System.
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5 | (Source: P.A. 94-1055, eff. 1-1-07.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Article 99. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Section 99-995. No acceleration or delay. Where this Act | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | makes changes in a statute that is represented in this Act by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | text that is not yet or no longer in effect (for example, a | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | Section represented by multiple versions), the use of that text | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | does not accelerate or delay the taking effect of (i) the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | changes made by this Act or (ii) provisions derived from any | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | other Public Act. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | Section 99-997. Severability. The provisions of this Act | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | are severable under Section 1.31 of the Statute on Statutes.
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16 | Section 99-999. Effective date. This Act takes effect July | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | 1, 2009.
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