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90_HB3850
35 ILCS 620/3 from Ch. 120, par. 470
220 ILCS 5/8-403.1 from Ch. 111 2/3, par. 8-403.1
Amends the Public Utilities Act to abolish provisions
requiring electric utilities to purchase electricity
generated by solid waste energy facilities. Amends the
Public Utilities Revenue Act to eliminate tax credits related
to the purchase of electricity generated by solid waste
energy facilities. Effective immediately.
LRB9009381JScd
LRB9009381JScd
1 AN ACT concerning electricity produced by qualified solid
2 waste disposal facilities.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Utilities Revenue Act is amended
6 by changing Section 3 as follows:
7 (35 ILCS 620/3) (from Ch. 120, par. 470)
8 (Section scheduled to be repealed on August 1, 1998)
9 Sec. 3. Except as provided in this Section, on or before
10 the 15th day of each month, each taxpayer shall make a return
11 to the Department for the preceding calendar month, stating:
12 1. His name;
13 2. The address of his principal place of business,
14 and the address of the principal place of business (if
15 that is a different address) from which he engages in the
16 business of distributing, supplying, furnishing or
17 selling electricity in this State;
18 3. The total number of kilowatt-hours for which
19 payment was received by him from customers during the
20 preceding calendar month and upon the basis of which the
21 tax is imposed;
22 4. Gross receipts which were received by him from
23 customers during the preceding calendar month from such
24 business, including budget plan and other customer-owned
25 amounts applied during such month in payment of charges
26 includible in gross receipts, and upon the basis of which
27 the tax is imposed;
28 5. Amount of tax (computed upon Items 3 and 4);
29 6. (Blank). The amount of credits to which the
30 taxpayer is entitled on account of purchases made
31 pursuant to Section 8-403.1 of The Public Utilities Act;
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1 7. Such other reasonable information as the
2 Department may require.
3 In making such return the taxpayer may use any reasonable
4 method to derive reportable "kilowatt-hours" and "gross
5 receipts" from his billing and payment records.
6 Any taxpayer required to make payments under this Section
7 may make the payments by electronic funds transfer. The
8 Department shall adopt rules necessary to effectuate a
9 program of electronic funds transfer.
10 If the taxpayer's average monthly tax liability to the
11 Department does not exceed $100.00, the Department may
12 authorize his returns to be filed on a quarter annual basis,
13 with the return for January, February and March of a given
14 year being due by April 30 of such year; with the return for
15 April, May and June of a given year being due by July 31 of
16 such year; with the return for July, August and September of
17 a given year being due by October 31 of such year, and with
18 the return for October, November and December of a given year
19 being due by January 31 of the following year.
20 If the taxpayer's average monthly tax liability to the
21 Department does not exceed $20.00, the Department may
22 authorize his returns to be filed on an annual basis, with
23 the return for a given year being due by January 31 of the
24 following year.
25 Such quarter annual and annual returns, as to form and
26 substance, shall be subject to the same requirements as
27 monthly returns.
28 Notwithstanding any other provision in this Act
29 concerning the time within which a taxpayer may file his
30 return, in the case of any taxpayer who ceases to engage in a
31 kind of business which makes him responsible for filing
32 returns under this Act, such taxpayer shall file a final
33 return under this Act with the Department not more than one
34 month after discontinuing such business.
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1 In making such return the taxpayer shall determine the
2 value of any reportable consideration other than money
3 received by him and shall include such value in his return.
4 Such determination shall be subject to review and revision by
5 the Department in the same manner as is provided in this Act
6 for the correction of returns.
7 Each taxpayer whose average monthly liability to the
8 Department under this Act was $10,000 or more during the
9 preceding calendar year, excluding the month of highest
10 liability and the month of lowest liability in such calendar
11 year, and who is not operated by a unit of local government,
12 shall make estimated payments to the Department on or before
13 the 7th, 15th, 22nd and last day of the month during which
14 tax liability to the Department is incurred in an amount not
15 less than the lower of either 22.5% of the taxpayer's actual
16 tax liability for the month or 25% of the taxpayer's actual
17 tax liability for the same calendar month of the preceding
18 year. The amount of such quarter monthly payments shall be
19 credited against the final tax liability of the taxpayer's
20 return for that month. Any outstanding credit, approved by
21 the Department, arising from the taxpayer's overpayment of
22 its final tax liability for any month may be applied to
23 reduce the amount of any subsequent quarter monthly payment
24 or credited against the final tax liability of the taxpayer's
25 return for any subsequent month. If any quarter monthly
26 payment is not paid at the time or in the amount required by
27 this Section, the taxpayer shall be liable for penalty and
28 interest on the difference between the minimum amount due as
29 a payment and the amount of such payment actually and timely
30 paid, except insofar as the taxpayer has previously made
31 payments for that month to the Department in excess of the
32 minimum payments previously due.
33 If the Director finds that the information required for
34 the making of an accurate return cannot reasonably be
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1 compiled by a taxpayer within 15 days after the close of the
2 calendar month for which a return is to be made, he may grant
3 an extension of time for the filing of such return for a
4 period of not to exceed 31 calendar days. The granting of
5 such an extension may be conditioned upon the deposit by the
6 taxpayer with the Department of an amount of money not
7 exceeding the amount estimated by the Director to be due with
8 the return so extended. All such deposits, including any
9 heretofore made with the Department, shall be credited
10 against the taxpayer's liabilities under this Act. If any
11 such deposit exceeds the taxpayer's present and probable
12 future liabilities under this Act, the Department shall issue
13 to the taxpayer a credit memorandum, which may be assigned by
14 the taxpayer to a similar taxpayer under this Act, in
15 accordance with reasonable rules and regulations to be
16 prescribed by the Department.
17 The taxpayer making the return provided for in this
18 Section shall, at the time of making such return, pay to the
19 Department the amount of tax imposed by this Act. All moneys
20 received by the Department under this Act shall be paid into
21 the General Revenue Fund in the State treasury, except as
22 otherwise provided.
23 (Source: P.A. 90-16, eff. 6-16-97. Repealed by 90-561, eff.
24 8-1-98.)
25 Section 10. The Public Utilities Act is amended by
26 changing Section 8-403.1 as follows:
27 (220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1)
28 Sec. 8-403.1. (a) (Blank). It is hereby declared to be
29 the policy of this State to encourage the development of
30 alternate energy production facilities in order to conserve
31 our energy resources and to provide for their most efficient
32 use.
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1 (b) (Blank). For the purpose of this Section and Section
2 9-215.1, "qualified solid waste energy facility" means a
3 facility determined by the Illinois Commerce Commission to
4 qualify as such under the Local Solid Waste Disposal Act, to
5 use methane gas generated from landfills as its primary fuel,
6 and to possess characteristics that would enable it to
7 qualify as a cogeneration or small power production facility
8 under federal law.
9 (c) (Blank). In furtherance of the policy declared in
10 this Section, the Illinois Commerce Commission shall require
11 electric utilities to enter into long-term contracts to
12 purchase electricity from qualified solid waste energy
13 facilities located in the electric utility's service area,
14 for a period beginning on the date that the facility begins
15 generating electricity and having a duration of not less than
16 10 years in the case of facilities fueled by
17 landfill-generated methane, or 20 years in the case of
18 facilities fueled by methane generated from a landfill owned
19 by a forest preserve district. The purchase rate contained
20 in such contracts shall be equal to the average amount per
21 kilowatt-hour paid from time to time by the unit or units of
22 local government in which the electricity generating
23 facilities are located, excluding amounts paid for street
24 lighting and pumping service.
25 (d) Whenever a public utility is required to purchase
26 electricity pursuant to subsection (c) above, it shall be
27 entitled to credits in respect of its obligations to pay
28 taxes under The Public Utilities Revenue Act equal to the
29 amounts, if any, by which payments for such electricity
30 exceed (i) the then current rate at which the utility must
31 purchase the output of qualified facilities pursuant to the
32 federal Public Utility Regulatory Policies Act of 1978, less
33 (ii) any costs, expenses, losses, damages or other amounts
34 incurred by the utility, or for which it becomes liable,
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1 arising out of its failure to obtain such electricity from
2 such other sources. The amount of any such credit shall, in
3 the first instance, be determined by the utility, which shall
4 make a monthly report of such credits to the Illinois
5 Commerce Commission and, on its monthly tax return, to the
6 Illinois Department of Revenue. Under no circumstances shall
7 a utility be required to purchase electricity from a
8 qualified solid waste energy facility at the rate prescribed
9 in subsection (c) of this Section if such purchase would
10 result in estimated tax credits that exceed, on a monthly
11 basis, the utility's estimated obligation to pay taxes under
12 the Public Utilities Revenue Act. The owner or operator shall
13 negotiate facility operating conditions with the purchasing
14 utility in accordance with that utility's posted standard
15 terms and conditions for small power producers. If the
16 Department of Revenue disputes the amount of any such credit,
17 such dispute shall be decided by the Illinois Commerce
18 Commission. Whenever a qualified solid waste energy facility
19 has paid or otherwise satisfied in full the capital costs or
20 indebtedness incurred in developing and implementing the
21 qualified facility, the qualified facility shall reimburse
22 the Public Utilities Fund in the State treasury for the
23 actual reduction in payments to that Fund caused by this
24 Section subsection (d) in a manner to be determined by the
25 Illinois Commerce Commission and based on the manner in which
26 revenues for that Fund were reduced.
27 (e) (Blank). The Illinois Commerce Commission shall not
28 require an electric utility to purchase electricity from any
29 qualified solid waste energy facility which is owned or
30 operated by an entity that is primarily engaged in the
31 business of producing or selling electricity, gas, or useful
32 thermal energy from a source other than one or more qualified
33 solid waste energy facilities.
34 (f) (Blank). This Section does not require an electric
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1 utility to construct additional facilities unless those
2 facilities are paid for by the owner or operator of the
3 affected qualified solid waste energy facility.
4 (g) (Blank). The Illinois Commerce Commission shall
5 require that: (1) electric utilities use the electricity
6 purchased from a qualified solid waste energy facility to
7 displace electricity generated from nuclear power or coal
8 mined and purchased outside the boundaries of the State of
9 Illinois before displacing electricity generated from coal
10 mined and purchased within the State of Illinois, to the
11 extent possible, and (2) electric utilities report annually
12 to the Commission on the extent of such displacements.
13 (h) (Blank). Nothing in this Section is intended to
14 cause an electric utility that is required to purchase power
15 hereunder to incur any economic loss as a result of its
16 purchase. All amounts paid for power which a utility is
17 required to purchase pursuant to subparagraph (c) shall be
18 deemed to be costs prudently incurred for purposes of
19 computing charges under rates authorized by Section 9-220 of
20 this Act. Tax credits provided for herein shall be reflected
21 in charges made pursuant to rates so authorized to the extent
22 such credits are based upon a cost which is also reflected in
23 such charges.
24 (Source: P.A. 89-448, eff. 3-14-96.)
25 Section 99. Effective date. This Act takes effect upon
26 becoming law.