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90_HB1309ham001
LRB9003851DPmgam
1 AMENDMENT TO HOUSE BILL 1309
2 AMENDMENT NO. . Amend House Bill 1309 by replacing
3 all of Section 5 with the following:
4 "Section 5. The Public Utilities Act is amended by
5 changing Section 8-403.1 as follows:
6 (220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1)
7 Sec. 8-403.1. Qualified solid waste energy facilities;
8 purchase rate.
9 (a) It is hereby declared to be the policy of this State
10 to encourage the development of alternate energy production
11 facilities in order to conserve our energy resources and to
12 provide for their most efficient use.
13 (b) For the purpose of this Section and Section 9-215.1,
14 "qualified solid waste energy facility" means a facility
15 determined by the Illinois Commerce Commission to qualify as
16 such under the Local Solid Waste Disposal Act, to use methane
17 gas generated from landfills as its primary fuel, and to
18 possess characteristics that would enable it to qualify as a
19 cogeneration or small power production facility under federal
20 law.
21 (b-5) In the case of facilities that use solid waste as
22 a fuel to generate energy, the facility must (i) include
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1 equipment designed to recover recyclable materials in an
2 amount equal to at least 20% by weight from all solid waste
3 delivered to the facility and (ii) comply with air quality
4 standards set forth by the Illinois Environmental Protection
5 Agency.
6 (c) In furtherance of the policy declared in this
7 Section, the Illinois Commerce Commission shall require,
8 subject to the provisions of subsection (i) of this Section,
9 electric utilities to enter into long-term contracts to
10 purchase electricity from qualified solid waste energy
11 facilities located in the electric utility's service area,
12 for a period beginning on the date that the facility begins
13 generating electricity and having a duration of not less than
14 20 years, or 10 years in the case of facilities fueled by
15 landfill-generated methane, or 20 years in the case of
16 facilities fueled by methane generated from a landfill owned
17 by a forest preserve district. For facilities that use solid
18 waste as a fuel to generate energy, the purchase rate
19 contained in the long-term contracts shall be a rate equal to
20 the average amount per kilowatt-hour paid from time to time
21 by the unit or units of local government owning or served by
22 the facilities, excluding amounts paid for street lighting
23 and pumping services. For facilities that use
24 landfill-generated methane gas as fuel, the purchase rate
25 contained in such contracts shall be equal to the average
26 amount per kilowatt-hour paid from time to time by the unit
27 or units of local government in which the electricity
28 generating facilities are located, excluding amounts paid for
29 street lighting and pumping service. Long-term contracts
30 with facilities that use solid waste as a fuel to generate
31 energy and that meet the criteria under subsection (i) shall
32 cover electricity generated on and after January 1, 1997.
33 (d) Whenever a public utility is required to purchase
34 electricity pursuant to subsection (c) above, it shall be
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1 entitled to credits in respect of its obligations to pay
2 taxes under the Public Utilities Revenue Act or any successor
3 taxes to that Act equal to the amounts, if any, by which
4 payments for such electricity exceed (i) the then current
5 rate at which the utility must purchase the output of
6 qualified facilities pursuant to the federal Public Utility
7 Regulatory Policies Act of 1978, less (ii) any costs,
8 expenses, losses, damages or other amounts incurred by the
9 utility, or for which it becomes liable, arising out of its
10 failure to obtain such electricity from such other sources.
11 The amount of any such credit shall, in the first instance,
12 be determined by the utility, which shall make a monthly
13 report of such credits to the Illinois Commerce Commission
14 and, on its monthly tax return, to the Illinois Department of
15 Revenue. Under no circumstances shall a utility be required
16 to purchase electricity from a qualified solid waste energy
17 facility at the rate prescribed in subsection (c) of this
18 Section if (A) such purchase would result in estimated tax
19 credits that exceed, on a monthly basis, the utility's
20 estimated obligation to pay taxes under the Public Utilities
21 Revenue Act or any successor taxes to that Act or (B) the
22 facility fails to comply with the air quality standards
23 prescribed for the facility by the Illinois Environmental
24 Protection Agency, in which case (i) the Illinois
25 Environmental Protection Agency shall notify the public
26 utility of the noncompliance and (ii) the facility shall
27 receive a reduced rate per kilowatt-hour equal to the current
28 rate at which the utility must purchase the output of
29 qualified facilities pursuant to the Public Utility
30 Regulatory Policies Act of 1978 for the period of
31 noncompliance, that period not to be less than one hour. The
32 owner or operator shall negotiate facility operating
33 conditions with the purchasing utility in accordance with
34 that utility's posted standard terms and conditions for small
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1 power producers. If the Department of Revenue disputes the
2 amount of any such credit, such dispute shall be decided by
3 the Illinois Commerce Commission.
4 There is hereby created the Technology Education Fund as
5 a special fund in the State Treasury. Pursuant to
6 appropriation, disbursements from the Technology Education
7 Fund shall be made by the Department of Commerce and
8 Community Affairs to qualified Illinois high schools for the
9 purpose of establishing new educational programs for the
10 advancement of the physical sciences. For facilities that
11 use solid waste as a fuel to generate energy, as soon as
12 practical after the end of each calendar year, the qualified
13 solid waste energy facility shall remit an amount equal to 5%
14 of the tax credits received by the public utility pursuant to
15 subsection (d) for the prior calendar year to the Technology
16 Education Fund.
17 Whenever A qualified solid waste energy facility has paid
18 or otherwise satisfied in full the capital costs or
19 indebtedness incurred in developing and implementing the
20 qualified facility, the qualified facility shall reimburse
21 the Public Utility Utilities Fund or a successor fund in the
22 State treasury for the actual reduction in payments to that
23 Fund or a successor fund caused by this subsection (d), less
24 any payments made by the qualified solid waste energy
25 facility to the Technology Education Fund, in a manner to be
26 determined by the Illinois Commerce Commission and based on
27 the manner in which revenues for that Fund or a successor
28 fund were reduced. In establishing the manner in which a
29 qualified solid waste energy facility shall reimburse the
30 Fund or a successor fund, the Illinois Commerce Commission
31 shall require that (i) payments to the Fund or a successor
32 fund begin on the reimbursement commencement date, which
33 shall be the earlier of (A) 21 years from the date the
34 qualified solid waste energy facility begins commercial
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1 operation or (B) the date on which the capital costs or
2 indebtedness incurred in developing, constructing,
3 refinancing, and implementing the qualified facility have
4 been paid in full, and (ii) full reimbursement to the Fund
5 or a successor fund shall occur over a 12-year period after
6 the reimbursement commencement date. Payments shall be made
7 in equal monthly installments. A reimbursement payment that
8 is not paid when due in accordance with this subsection (d)
9 shall bear interest at the rate specified in Section 12-1303
10 of the Code of Civil Procedure from the date the payment was
11 due until the date the payment and all interest related to
12 the payment is paid in full. In order to secure payment of
13 the reimbursement obligation of a qualified facility under
14 this subsection there is established a statutory lien in
15 favor of the Fund on the qualified facility. The lien shall
16 come into existence on the reimbursement commencement date
17 and after that date, shall be superior to all other liens
18 established in connection with the indebtedness incurred in
19 developing, constructing, and implementing the qualified
20 facility. The statutory lien shall expire on the date that
21 the facility makes the last payment specified in the schedule
22 of reimbursement payments.
23 For purposes of this Section "air quality standards"
24 means the air emission limits for each continuously monitored
25 emission constituent, while using solid waste as fuel, as set
26 forth in the Construction/PSD permit issued by the Illinois
27 Environmental Protection Agency prior to commencement of
28 construction of a qualified solid waste energy facility.
29 (d-5) For facilities that use solid waste as a fuel to
30 generate energy, the qualified solid waste energy facility
31 shall provide funding to the Illinois Environmental
32 Protection Agency for the installation, maintenance, and
33 operating costs of a computer and related software necessary
34 to provide the general public with access to the qualified
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1 solid waste energy facility's emission data for continuously
2 monitored emission constituents. The computer and related
3 software shall be installed at a public library near the
4 qualified solid waste energy facility or at another location
5 as directed by the Illinois Environmental Protection Agency.
6 (e) The Illinois Commerce Commission shall not require
7 an electric utility to purchase electricity from any
8 qualified solid waste energy facility which is owned or
9 operated by an entity that is primarily engaged in the
10 business of producing or selling electricity, gas, or useful
11 thermal energy from a source other than one or more qualified
12 solid waste energy facilities.
13 (f) This Section does not require an electric utility to
14 construct additional facilities unless those facilities are
15 paid for by the owner or operator of the affected qualified
16 solid waste energy facility.
17 (g) The Illinois Commerce Commission shall require that:
18 (1) electric utilities use the electricity purchased from a
19 qualified solid waste energy facility to displace electricity
20 generated from nuclear power or coal mined and purchased
21 outside the boundaries of the State of Illinois before
22 displacing electricity generated from coal mined and
23 purchased within the State of Illinois, to the extent
24 possible, and (2) electric utilities report annually to the
25 Commission on the extent of such displacements.
26 (h) Nothing in this Section is intended to cause an
27 electric utility that is required to purchase power hereunder
28 to incur any economic loss as a result of its purchase. All
29 amounts paid for power which a utility is required to
30 purchase pursuant to subparagraph (c) shall be deemed to be
31 costs prudently incurred for purposes of computing charges
32 under rates authorized by Section 9-220 of this Act. Tax
33 credits provided for herein shall be reflected in charges
34 made pursuant to rates so authorized to the extent such
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1 credits are based upon a cost which is also reflected in such
2 charges.
3 (i) The provisions of subsection (c) of this Section
4 shall not apply to a facility unless the facility either (1)
5 is fueled by landfill-generated methane or (2) met the
6 following criteria prior to January 1, 1997:
7 (A) the Illinois Commerce Commission issued an
8 order making the determination required by subsection (b)
9 of this Section for the facility;
10 (B) all governmental permits necessary to commence
11 construction were issued;
12 (C) construction of the facility was substantially
13 completed; and
14 (D) bonds were issued or other debt was incurred
15 for the purpose, and in the full amount anticipated at
16 the time of issuance or incurrence to be necessary, to
17 finance the development and construction of the facility.
18 (Source: P.A. 89-448, eff. 3-14-96.)
19 Section 10. The State Finance Act is amended by adding
20 Section 5.449 as follows:
21 (30 ILCS 105/5.449 new)
22 Sec. 5.449. The Technology Education Fund.".