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Wind Turbine Related Legislation in Illinois
Compiled by Tim Stratton, Bond Lawyer
Ice Miller LLP
200 West Madison Street, Suite 3500
Chicago, Illinois 60606
Illinois Laws
A number of wind energy related acts have been
created to facilitate development. Below are summaries of significant policy. These summaries were prepared from information available at http://www.ilga.gov/legislation/publicacts/default.asp
Financial Assistance for School Renewable Energy Projects
Public Act 095-0046 An ACT concerning education
- Subject to appropriation of funds.
- Renewable energy grant program – solar, geothermal, and wind
- Installation, acquisition, construction, and improvement of renewable energy resources in public schools
- Grant coverage
50% of cost
Maximum grant of $1,000,000
School must demonstrate 50% cost share
School may fund its portion with private funds
Public Act 095-0203 An ACT concerning local government
County
- may establish standards for wind turbines and wind farms
- Including height, number
- Including the siting of wind turbines in unincorporated areas
- does not regulate siting in municipality jurisdiction and a 1.5 mile radius surrounding its jurisdiction
- shall hold at least one public hearing not more than 30 days prior to a siting of a wind turbine decision by county board
- Notice of hearing published in newspaper with general circulation in county
- may allow siting of test wind towers without formal approval
- Test wind towers must be dismantled within three years of installation
- Provisions of county zoning ordinance pertaining to wind farms, already in effect prior to effective date of this act may continue.
- may regulate wind turbines and wind farms within its jurisdiction and a 1.5 miles radius surrounding its zoning jurisdiction.
- shall hold at least one public hearing not more than 30 days prior to a siting of a wind turbine decision by county board
- Notice of hearing published in newspaper with general circulation in the municipality
- may allow siting of test wind towers without formal approval
- Test wind towers must be dismantled within three years of installation
Public Act 095-0390 An Act concerning education
- A school district may own/operate a wind farm
- Individually or jointly
- Must reduce directly or indirectly energy or other operating costs of school district
- School district may ask for assistance of any State agency in obtaining financing options.
- A community college district is covered by the same provisions as a school district
Public Act 095-0420 An ACT concerning regulation
- For retail customers that own or operate electric generation from renewable energy on their premises
- Electricity providers must offer by April 1, 2008
- Up to rated capacity of 2000 kilowatts per customer
- Customers meeting requirements must be accepted into the program until electricity provider has achieved 1% of total peak demand (based on previous year experience), however
- Systems rated at 40 kilowatts or less are limited to 200 new customers for a one year period beginning 4/1/08
- Intent is to offset customer's own consumption
- Generation offsets consumption monthly
- If consumption exceeds generation then billed for the net deficit
- If generation exceeds consumption then a credit for the net surplus is carried forward until needed for another net deficit month
- Each monthly credit must be used within 12 months at which time it expires
- Retail customer owns any credits that may become associated with production of renewable energy
- Pro rating for multiple customers such as in a community wind project is at discretion of electricity provider
Public Act 095-0481 An ACT concerning Renewable Portfolio Standards
- Minimum percentage of utility's total supply to serve the load of eligible retail customers.
- At least 2% by June 1, 2008
- At least 4% by June 1, 2009
- Increasing by 1% per year thereafter to 10% by June 2015
- Increasing by 1.5% each year thereafter to at least 25% by June 1, 2025
- At extent that it is available, at least 75% of the renewable energy resources used shall come from wind generation.
The current regulations regarding CREB financing is in its infancy. The bonds have been patterned after the very successful Qualified Zone Academy Bond (QZABs) program school district's currently enjoy, but have added quirks that will add a layer of complexity not found in QZAB. Whether the CREB will enjoy the same market acceptability that the QZAB currently enjoy is an ongoing debate. The current allocation for CREB's has expired. It is anticipated that Congress will reauthorize the program.
- Submitting of a CREB application for your project.
Applications must be submitted in duplicate to the Internal Revenue Service (IRS), Attention CC:TEGE:EOEG:TEB, 1111 Constitution Avenue, NW, Room 4306, Washington, D.C. 20224. Applications may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to the Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, D.C., attention CC:TEGE:EOEG:TEB. - SMALL IS BEAUTIFUL. Small projects are given FIRST priority in funding requests.
- Any municipality (city, county, state, utility district, etc.) as well as electric COOPs and some specific lenders may issue CREBs for a qualified project.
- Projects MUST generate electricity and MUST be created from clean and/or renewable sources, including "clean-coal".
- The lender will receive a tax credit from the Federal Government instead of an interest check from the borrower.
- The Tax Credit is taken QUARTERLY by the lender.
- Repayment of the debt MUST be made in EQUAL, ANNUAL PAYMENTS.
- CREB funds must be spent within 5 years.
- The tax credit is set by the US Treasury, daily, and for each annual payment year.
- The maximum maturity for the CREB will be set by the US Treasury (monthly)
- CREB are intended to be issued without interest or be sold at a discount.
