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| [ Introduced ] | [ House Amendment 001 ] |
90_HB1103ham002
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1 AMENDMENT TO HOUSE BILL 1103
2 AMENDMENT NO. . Amend House Bill 1103, AS AMENDED,
3 by replacing the title with the following:
4 "AN ACT to amend the Public Utilities Act by changing
5 Section 8-403.1."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Public Utilities Act is amended by
9 changing Section 8-403.1 as follows:
10 (220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1)
11 Sec. 8-403.1. Qualified solid waste energy facilities;
12 purchase rate.
13 (a) It is hereby declared to be the policy of this State
14 to encourage the development of alternate energy production
15 facilities in order to conserve our energy resources and to
16 provide for their most efficient use.
17 (b) For the purpose of this Section and Section 9-215.1,
18 "qualified solid waste energy facility" means a facility
19 determined by the Illinois Commerce Commission to qualify as
20 such under the Local Solid Waste Disposal Act, to use methane
21 gas generated from landfills as its primary fuel, and to
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1 possess characteristics that would enable it to qualify as a
2 cogeneration or small power production facility under federal
3 law.
4 (c) In furtherance of the policy declared in this
5 Section, the Illinois Commerce Commission shall require
6 electric utilities to enter into long-term contracts to
7 purchase electricity from qualified solid waste energy
8 facilities located in the electric utility's service area,
9 for a period beginning on the date that the facility begins
10 generating electricity and having a duration of not less than
11 20 years, or 10 years in the case of facilities fueled by
12 landfill-generated methane, or 20 years in the case of
13 facilities fueled by methane generated from a landfill owned
14 by a forest preserve district. The purchase rate contained
15 in such contracts shall be equal to the then current rate at
16 which the utility must purchase the output of qualified
17 facilities pursuant to the federal Public Utility Regulatory
18 Policies Act of 1978 less any costs, expenses, losses,
19 damages, or other amounts incurred by the utility or for
20 which it becomes liable because of its failure to obtain
21 electricity from other sources. average amount per
22 kilowatt-hour paid from time to time by the unit or units of
23 local government in which the electricity generating
24 facilities are located, excluding amounts paid for street
25 lighting and pumping service.
26 (d) (Blank). Whenever a public utility is required to
27 purchase electricity pursuant to subsection (c) above, it
28 shall be entitled to credits in respect of its obligations to
29 pay taxes under The Public Utilities Revenue Act equal to the
30 amounts, if any, by which payments for such electricity
31 exceed (i) the then current rate at which the utility must
32 purchase the output of qualified facilities pursuant to the
33 federal Public Utility Regulatory Policies Act of 1978, less
34 (ii) any costs, expenses, losses, damages or other amounts
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1 incurred by the utility, or for which it becomes liable,
2 arising out of its failure to obtain such electricity from
3 such other sources. The amount of any such credit shall, in
4 the first instance, be determined by the utility, which shall
5 make a monthly report of such credits to the Illinois
6 Commerce Commission and, on its monthly tax return, to the
7 Illinois Department of Revenue. Under no circumstances shall
8 a utility be required to purchase electricity from a
9 qualified solid waste energy facility at the rate prescribed
10 in subsection (c) of this Section if such purchase would
11 result in estimated tax credits that exceed, on a monthly
12 basis, the utility's estimated obligation to pay taxes under
13 the Public Utilities Revenue Act. The owner or operator shall
14 negotiate facility operating conditions with the purchasing
15 utility in accordance with that utility's posted standard
16 terms and conditions for small power producers. If the
17 Department of Revenue disputes the amount of any such credit,
18 such dispute shall be decided by the Illinois Commerce
19 Commission. Whenever a qualified solid waste energy facility
20 has paid or otherwise satisfied in full the capital costs or
21 indebtedness incurred in developing and implementing the
22 qualified facility, the qualified facility shall reimburse
23 the Public Utilities Fund in the State treasury for the
24 actual reduction in payments to that Fund caused by this
25 subsection (d) in a manner to be determined by the Illinois
26 Commerce Commission and based on the manner in which revenues
27 for that Fund were reduced.
28 (e) The Illinois Commerce Commission shall not require
29 an electric utility to purchase electricity from any
30 qualified solid waste energy facility which is owned or
31 operated by an entity that is primarily engaged in the
32 business of producing or selling electricity, gas, or useful
33 thermal energy from a source other than one or more qualified
34 solid waste energy facilities.
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1 (f) This Section does not require an electric utility to
2 construct additional facilities unless those facilities are
3 paid for by the owner or operator of the affected qualified
4 solid waste energy facility.
5 (g) The Illinois Commerce Commission shall require that:
6 (1) electric utilities use the electricity purchased from a
7 qualified solid waste energy facility to displace electricity
8 generated from nuclear power or coal mined and purchased
9 outside the boundaries of the State of Illinois before
10 displacing electricity generated from coal mined and
11 purchased within the State of Illinois, to the extent
12 possible, and (2) electric utilities report annually to the
13 Commission on the extent of such displacements.
14 (h) Nothing in this Section is intended to cause an
15 electric utility that is required to purchase power hereunder
16 to incur any economic loss as a result of its purchase. All
17 amounts paid for power which a utility is required to
18 purchase pursuant to subparagraph (c) shall be deemed to be
19 costs prudently incurred for purposes of computing charges
20 under rates authorized by Section 9-220 of this Act. Tax
21 credits provided for herein shall be reflected in charges
22 made pursuant to rates so authorized to the extent such
23 credits are based upon a cost which is also reflected in such
24 charges.
25 (Source: P.A. 89-448, eff. 3-14-96.)
26 Section 99. Effective date. This Act takes effect upon
27 becoming law.".