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91_HB4153
LRB9112169LDpk
1 AN ACT in relation to public utilities, amending named
2 Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Electricity Excise Tax Law is amended by
6 changing Sections 2-7 and 2-9 as follows:
7 (35 ILCS 640/2-7)
8 Sec. 2-7. Collection of electricity excise tax.
9 (a) Beginning with bills for electricity or electric
10 service issued on and after August 1, 1998, the tax imposed
11 by this Law shall be collected from the purchaser, other than
12 a self-assessing purchaser where the delivering supplier or
13 suppliers are notified by the Department that the purchaser
14 has been registered as a self-assessing purchaser for the
15 accounts listed by the self-assessing purchaser as described
16 in Section 2-10 of this Law, by any delivering supplier
17 maintaining a place of business in this State at the rates
18 stated in Section 2-4 with respect to the electricity
19 delivered by such delivering supplier to or for the
20 purchaser, and shall be remitted to the Department as
21 provided in Section 2-9 of this Law. All sales to a purchaser
22 are presumed subject to tax collection unless the Department
23 notifies the delivering supplier that the purchaser has been
24 registered as a self-assessing purchaser for the accounts
25 listed by the self-assessing purchaser as described in
26 Section 2-10 of this Law. Upon receipt of notification by
27 the Department, the delivering supplier is relieved of all
28 liability for the collection and remittance of tax from the
29 self-assessing purchaser for which notification was provided
30 by the Department. The delivering supplier is relieved of
31 the liability for the collection of the tax from a
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1 self-assessing purchaser until such time as the delivering
2 supplier is notified in writing by the Department that the
3 purchaser's certification as a self-assessing purchaser is no
4 longer in effect. Delivering suppliers shall collect the tax
5 from purchasers by adding the tax to the amount of the
6 purchase price received from the purchaser for delivering
7 electricity for or to the purchaser. Where a delivering
8 supplier does not collect the tax from a purchaser, other
9 than a self-assessing purchaser, as provided herein, such
10 purchaser shall pay the tax directly to the Department.
11 (b) The credit allowed to a public utility pursuant to
12 under Section 8-403.1 of the Public Utilities Act shall be
13 allowed as a credit against the public utility's obligation
14 to remit electricity excise tax described in Section 2-9.
15 (Source: P.A. 90-561, eff. 8-1-98; 90-624, eff. 7-10-98;
16 90-813, eff. 1-29-99.)
17 (35 ILCS 640/2-9)
18 Sec. 2-9. Return and payment of tax by delivering
19 supplier. Each delivering supplier who is required or
20 authorized to collect the tax imposed by this Law shall make
21 a return to the Department on or before the 15th day of each
22 month for the preceding calendar month stating the following:
23 (1) The delivering supplier's name.
24 (2) The address of the delivering supplier's
25 principal place of business and the address of the
26 principal place of business (if that is a different
27 address) from which the delivering supplier engaged in
28 the business of delivering electricity in this State.
29 (3) The total number of kilowatt-hours which the
30 supplier delivered to or for purchasers during the
31 preceding calendar month and upon the basis of which the
32 tax is imposed.
33 (4) Amount of tax, computed upon Item (3) at the
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1 rates stated in Section 2-4.
2 (5) An adjustment for uncollectible amounts of tax
3 in respect of prior period kilowatt-hour deliveries,
4 determined in accordance with rules and regulations
5 promulgated by the Department.
6 (5.5) The amount of credits to which the taxpayer
7 is entitled on account of purchases made pursuant to
8 under Section 8-403.1 of the Public Utilities Act.
9 (6) Such other information as the Department
10 reasonably may require.
11 In making such return the delivering supplier may use any
12 reasonable method to derive reportable "kilowatt-hours" from
13 the delivering supplier's records.
14 If the average monthly tax liability to the Department of
15 the delivering supplier does not exceed $2,500, the
16 Department may authorize the delivering supplier's returns to
17 be filed on a quarter-annual basis, with the return for
18 January, February and March of a given year being due by
19 April 30 of such year; with the return for April, May and
20 June of a given year being due by July 31 of such year; with
21 the return for July, August and September of a given year
22 being due by October 31 of such year; and with the return for
23 October, November and December of a given year being due by
24 January 31 of the following year.
25 If the average monthly tax liability to the Department of
26 the delivering supplier does not exceed $1,000, the
27 Department may authorize the delivering supplier's returns to
28 be filed on an annual basis, with the return for a given year
29 being due by January 31 of the following year.
30 Such quarter-annual and annual returns, as to form and
31 substance, shall be subject to the same requirements as
32 monthly returns.
33 Notwithstanding any other provision in this Law
34 concerning the time within which a delivering supplier may
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1 file a return, any such delivering supplier who ceases to
2 engage in a kind of business which makes the person
3 responsible for filing returns under this Law shall file a
4 final return under this Law with the Department not more than
5 one month after discontinuing such business.
6 Each delivering supplier whose average monthly liability
7 to the Department under this Law was $10,000 or more during
8 the preceding calendar year, excluding the month of highest
9 liability and the month of lowest liability in such calendar
10 year, and who is not operated by a unit of local government,
11 shall make estimated payments to the Department on or before
12 the 7th, 15th, 22nd and last day of the month during which
13 tax liability to the Department is incurred in an amount not
14 less than the lower of either 22.5% of such delivering
15 supplier's actual tax liability for the month or 25% of such
16 delivering supplier's actual tax liability for the same
17 calendar month of the preceding year. The amount of such
18 quarter-monthly payments shall be credited against the final
19 tax liability of such delivering supplier's return for that
20 month. An outstanding credit approved by the Department or a
21 credit memorandum issued by the Department arising from such
22 delivering supplier's overpayment of his or her final tax
23 liability for any month may be applied to reduce the amount
24 of any subsequent quarter-monthly payment or credited against
25 the final tax liability of such delivering supplier's return
26 for any subsequent month. If any quarter-monthly payment is
27 not paid at the time or in the amount required by this
28 Section, such delivering supplier shall be liable for penalty
29 and interest on the difference between the minimum amount due
30 as a payment and the amount of such payment actually and
31 timely paid, except insofar as such delivering supplier has
32 previously made payments for that month to the Department in
33 excess of the minimum payments previously due.
34 If the Director finds that the information required for
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1 the making of an accurate return cannot reasonably be
2 compiled by such delivering supplier within 15 days after the
3 close of the calendar month for which a return is to be made,
4 the Director may grant an extension of time for the filing of
5 such return for a period not to exceed 31 calendar days. The
6 granting of such an extension may be conditioned upon the
7 deposit by such delivering supplier with the Department of an
8 amount of money not exceeding the amount estimated by the
9 Director to be due with the return so extended. All such
10 deposits shall be credited against such delivering supplier's
11 liabilities under this Law. If the deposit exceeds such
12 delivering supplier's present and probable future liabilities
13 under this Law, the Department shall issue to such delivering
14 supplier a credit memorandum, which may be assigned by such
15 delivering supplier to a similar person under this Law, in
16 accordance with reasonable rules and regulations to be
17 prescribed by the Department.
18 The delivering supplier making the return provided for in
19 this Section shall, at the time of making such return, pay to
20 the Department the amount of tax imposed by this Law.
21 A delivering supplier who has an average monthly tax
22 liability of $10,000 or more shall make all payments
23 required by rules of the Department by electronic funds
24 transfer. The term "average monthly tax liability" shall be
25 the sum of the delivering supplier's liabilities under this
26 Law for the immediately preceding calendar year divided by
27 12. Any delivering supplier not required to make payments
28 by electronic funds transfer may make payments by electronic
29 funds transfer with the permission of the Department. All
30 delivering suppliers required to make payments by electronic
31 funds transfer and any delivering suppliers authorized to
32 voluntarily make payments by electronic funds transfer shall
33 make those payments in the manner authorized by the
34 Department.
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1 Each month the Department shall pay into the Public
2 Utility Fund in the State treasury an amount determined by
3 the Director to be equal to 3.0% of the funds received by the
4 Department pursuant to this Section. The remainder of all
5 moneys received by the Department under this Section shall be
6 paid into the General Revenue Fund in the State treasury.
7 (Source: P.A. 90-561, eff. 8-1-98; 90-813, eff. 1-29-99.)
8 Section 10. 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. Electricity purchased from qualified solid
12 waste energy facility; tax credit; distributions for economic
13 development.
14 (a) It is hereby declared to be the policy of this State
15 to encourage the development of alternate energy production
16 facilities in order to conserve our energy resources and to
17 provide for their most efficient use.
18 (b) For the purpose of this Section and Section 9-215.1,
19 "qualified solid waste energy facility" means a facility
20 determined by the Illinois Commerce Commission to qualify as
21 such under the Local Solid Waste Disposal Act, to use methane
22 gas generated from landfills as its primary fuel, and to
23 possess characteristics that would enable it to qualify as a
24 cogeneration or small power production facility under federal
25 law.
26 (c) In furtherance of the policy declared in this
27 Section, the Illinois Commerce Commission shall require
28 electric utilities to enter into long-term contracts to
29 purchase electricity from qualified solid waste energy
30 facilities located in the electric utility's service area,
31 for a period beginning on the date that the facility begins
32 generating electricity and having a duration of not less than
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1 10 years in the case of facilities fueled by
2 landfill-generated methane, or 20 years in the case of
3 facilities fueled by methane generated from a landfill owned
4 by a forest preserve district. The purchase rate contained
5 in such contracts shall be equal to the average amount per
6 kilowatt-hour paid from time to time by the unit or units of
7 local government in which the electricity generating
8 facilities are located, excluding amounts paid for street
9 lighting and pumping service.
10 (d) Whenever a public utility is required to purchase
11 electricity pursuant to subsection (c) above, it shall be
12 entitled to credits in respect of its obligations to remit to
13 the State taxes it has collected under the Electricity Excise
14 Tax Law equal to the amounts, if any, by which payments for
15 such electricity exceed (i) the then current rate at which
16 the utility must purchase the output of qualified facilities
17 pursuant to the federal Public Utility Regulatory Policies
18 Act of 1978, less (ii) any costs, expenses, losses, damages
19 or other amounts incurred by the utility, or for which it
20 becomes liable, arising out of its failure to obtain such
21 electricity from such other sources. The amount of any such
22 credit shall, in the first instance, be determined by the
23 utility, which shall make a monthly report of such credits to
24 the Illinois Commerce Commission and, on its monthly tax
25 return, to the Illinois Department of Revenue. Under no
26 circumstances shall a utility be required to purchase
27 electricity from a qualified solid waste energy facility at
28 the rate prescribed in subsection (c) of this Section if such
29 purchase would result in estimated tax credits that exceed,
30 on a monthly basis, the utility's estimated obligation to
31 remit to the State taxes it has collected under the
32 Electricity Excise Tax Law. The owner or operator shall
33 negotiate facility operating conditions with the purchasing
34 utility in accordance with that utility's posted standard
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1 terms and conditions for small power producers. If the
2 Department of Revenue disputes the amount of any such credit,
3 such dispute shall be decided by the Illinois Commerce
4 Commission. Whenever a qualified solid waste energy facility
5 has paid or otherwise satisfied in full the capital costs or
6 indebtedness incurred in developing and implementing the
7 qualified facility, the qualified facility shall reimburse
8 the Public Utility Fund and the General Revenue Fund in the
9 State treasury for the actual reduction in payments to those
10 Funds caused by this subsection (d) in a manner to be
11 determined by the Illinois Commerce Commission and based on
12 the manner in which revenues for those Funds were reduced.
13 (e) The Illinois Commerce Commission shall not require
14 an electric utility to purchase electricity from any
15 qualified solid waste energy facility which is owned or
16 operated by an entity that is primarily engaged in the
17 business of producing or selling electricity, gas, or useful
18 thermal energy from a source other than one or more qualified
19 solid waste energy facilities.
20 (f) This Section does not require an electric utility to
21 construct additional facilities unless those facilities are
22 paid for by the owner or operator of the affected qualified
23 solid waste energy facility.
24 (g) The Illinois Commerce Commission shall require that:
25 (1) electric utilities use the electricity purchased from a
26 qualified solid waste energy facility to displace electricity
27 generated from nuclear power or coal mined and purchased
28 outside the boundaries of the State of Illinois before
29 displacing electricity generated from coal mined and
30 purchased within the State of Illinois, to the extent
31 possible, and (2) electric utilities report annually to the
32 Commission on the extent of such displacements.
33 (h) Nothing in this Section is intended to cause an
34 electric utility that is required to purchase power hereunder
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1 to incur any economic loss as a result of its purchase. All
2 amounts paid for power which a utility is required to
3 purchase pursuant to subparagraph (c) shall be deemed to be
4 costs prudently incurred for purposes of computing charges
5 under rates authorized by Section 9-220 of this Act. Tax
6 credits provided for herein shall be reflected in charges
7 made pursuant to rates so authorized to the extent such
8 credits are based upon a cost which is also reflected in such
9 charges.
10 (i) Beginning in February 1999 and through January 2009,
11 each qualified solid waste energy facility that sells
12 electricity to an electric utility at the purchase rate
13 described in subsection (c) shall file with the State
14 Treasurer on or before the 1st 15th of each month a form,
15 prescribed by the State Treasurer, that states the number of
16 kilowatt hours of electricity for which payment was received
17 at that purchase rate from electric utilities in Illinois
18 during the immediately preceding month. This form shall be
19 accompanied by a payment from the qualified solid waste
20 energy facility in an amount equal to six-tenths of a mill
21 ($0.0006) per kilowatt hour of electricity stated on the
22 form. Payments received by the State Treasurer shall be
23 deposited into the Municipal Economic Development Fund, a
24 trust fund created outside the State treasury. The State
25 Treasurer may invest the moneys in the Fund in any investment
26 authorized by the Public Funds Investment Act, and investment
27 income shall be deposited into and become part of the Fund.
28 Moneys in the Fund shall be used by the State Treasurer as
29 provided in subsection (j). The obligation of a qualified
30 solid waste energy facility to make payments into the
31 Municipal Economic Development Fund shall terminate upon
32 either: (1) expiration or termination of a facility's
33 contract to sell electricity to an electric utility at the
34 purchase rate described in subsection (c); or (2) entry of an
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1 enforceable, final, and non-appealable order by a court of
2 competent jurisdiction that Public Act 89-448 is invalid.
3 Payments by a qualified solid waste energy facility into the
4 Municipal Economic Development Fund do not relieve the
5 qualified solid waste energy facility of its obligation to
6 reimburse the Public Utility Fund and the General Revenue
7 Fund for the actual reduction in payments to those Funds as a
8 result of credits received by electric utilities under
9 subsection (d).
10 (j) The State Treasurer, without appropriation, must
11 make distributions immediately after January 1 15, April 1
12 15, July 1 15, and October 1 15 of each year, up to maximum
13 aggregate distributions of $500,000 for the distributions
14 made in the 4 quarters beginning with the April distribution
15 and ending with the January distribution, from the Municipal
16 Economic Development Fund to each city, village, or
17 incorporated town that has within its boundaries an
18 incinerator that: (1) uses municipal waste as its primary
19 fuel to generate electricity; (2) was determined by the
20 Illinois Commerce Commission to qualify as a qualified solid
21 waste energy facility prior to the effective date of Public
22 Act 89-448; and (3) commenced operation prior to January 1,
23 1998. Total distributions in the aggregate to all qualified
24 cities, villages, and incorporated towns in the 4 quarters
25 beginning with the April distribution and ending with the
26 January distribution shall not exceed $500,000. The amount
27 of each distribution shall be determined pro rata based on
28 the population of the city, village, or incorporated town
29 compared to the total population of all cities, villages, and
30 incorporated towns eligible to receive a distribution.
31 Distributions received by a city, village, or incorporated
32 town must be held in a separate account and may be used only
33 to promote and enhance industrial, commercial, residential,
34 service, transportation, and recreational activities and
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1 facilities within its boundaries, thereby enhancing the
2 employment opportunities, public health and general welfare,
3 and economic development within the community, including
4 administrative expenditures exclusively to further these
5 activities. These funds, however, shall not be used by the
6 city, village, or incorporated town, directly or indirectly,
7 to purchase, lease, operate, or in any way subsidize the
8 operation of any incinerator, and these funds shall not be
9 paid, directly or indirectly, by the city, village, or
10 incorporated town to the owner, operator, lessee,
11 shareholder, or bondholder of any incinerator. Moreover,
12 these funds shall not be used to pay attorneys fees in any
13 litigation relating to the validity of Public Act 89-448.
14 Nothing in this Section prevents a city, village, or
15 incorporated town from using other corporate funds for any
16 legitimate purpose. For purposes of this subsection, the
17 term "municipal waste" has the meaning ascribed to it in
18 Section 3.21 of the Environmental Protection Act.
19 (k) If maximum aggregate distributions of $500,000 under
20 subsection (j) have been made after the January distribution
21 from the Municipal Economic Development Fund, then the
22 balance in the Fund shall be refunded to the qualified solid
23 waste energy facilities that made payments that were
24 deposited into the Fund during the previous 12-month period.
25 The refunds shall be prorated based upon the facility's
26 payments in relation to total payments for that 12-month
27 period.
28 (l) Beginning January 1, 2000, and each January 1
29 thereafter, each city, village, or incorporated town that
30 received distributions from the Municipal Economic
31 Development Fund, continued to hold any of those
32 distributions, or made expenditures from those distributions
33 during the immediately preceding year shall submit to a
34 financial and compliance and program audit of those
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1 distributions performed by the Auditor General at no cost to
2 the city, village, or incorporated town that received the
3 distributions. The audit should be completed by June 30 or
4 as soon thereafter as possible. The audit shall be submitted
5 to the State Treasurer and those officers enumerated in
6 Section 3-14 of the Illinois State Auditing Act. If the
7 Auditor General finds that distributions have been expended
8 in violation of this Section, the Auditor General shall refer
9 the matter to the Attorney General. The Attorney General may
10 recover, in a civil action, 3 times the amount of any
11 distributions illegally expended. For purposes of this
12 subsection, the terms "financial audit," "compliance audit",
13 and "program audit" have the meanings ascribed to them in
14 Sections 1-13 and 1-15 of the Illinois State Auditing Act.
15 (Source: P.A. 89-448, eff. 3-14-96; 90-813, eff. 1-29-99.)