TITLE 35: ENVIRONMENTAL PROTECTION

SUBTITLE A: GENERAL PROVISIONS

CHAPTER I: POLLUTION CONTROL BOARD

PART 125

TAX CERTIFICATIONS

SUBPART A: GENERAL PROVISIONS

Section

125.100 Applicability

125.102 Severability

125.104 Definitions

SUBPART B: TAX CERTIFICATION OF POLLUTION CONTROL FACILITIES AND LOW

SULFUR DIOXIDE EMISSION COAL FUELED DEVICES

Section

125.200 General

125.202 Tax Certification Application

125.204 Agency Recommendation

125.206 Petition to Contest

125.208 Agency Record

125.210 Public Hearing

125.212 Hearing Notice

125.214 Burden of Proof

125.216 Board Action

AUTHORITY: Implementing and authorized by Sections 11-5, 11-10, 11-20, 11-25, 11-30, 11-

35, 11-40, 11-50, and 11-55 of the Property Tax Code [35 ILCS 200/11-5, 11-10, 11-20, 11-25,

11-30, 11-35, 11-40, 11-50, and 11-55] and Sections 26 and 27 of the Environmental Protection

Act (the Act) [415 ILCS 5/26 and 27].

SOURCE: Adopted in R00-20 at 25 Ill. Reg. 642, effective January 1, 2001; amended in R04-24

at 29 Ill. Reg. 8838, effective June 8, 2005.

SUBPART A: GENERAL PROVISIONS

Section 125.100 Applicability

a) This Part applies to any person seeking, for property tax purposes, a Board

certification that a facility or portion thereof is a pollution control facility, as

defined in Section 125.200(a)(1) of this Part, or that a device is a low sulfur

dioxide emission coal fueled device, as defined in Section 125.200(b)(1) of this

Part.

b) This Part must be read in conjunction with 35 Ill. Adm. Code 101, which contains

procedures generally applicable to all adjudicatory proceedings before the Board.

In the event of a conflict between the requirements of 35 Ill. Adm. Code 101 and

those of this Part, the provisions of this Part apply.

Section 125.102 Severability

If any provision of this Part or its application to any person is adjudged invalid, the adjudication

does not affect the validity of this Part as a whole or of any portion not adjudged invalid.

Section 125.104 Definitions

For the purpose of this Part, words and terms will have the meaning as defined in 35 Ill. Adm.

Code 101.Subpart B unless otherwise provided, or unless the context clearly indicates otherwise.

SUBPART B: TAX CERTIFICATION OF POLLUTION CONTROL FACILITIES AND LOW

SULFUR DIOXIDE EMISSION COAL FUELED DEVICES

Section 125.200 General

a) Pollution Control Facilities.

For tax purposes, pollution control facilities shall be

certified as such by the Board.

[35 ILCS 200/11-20]

1) “Pollution control facility” means, for purposes of this Part,

any system,

method, construction, device or appliance appurtenant thereto, or any

portion of any building or equipment, that is designed, constructed,

installed or operated for the primary purpose of: eliminating, preventing,

or reducing air or water pollution, as the terms “air pollution” and

“water pollution” are defined in the Act; or treating, pretreating,

modifying or disposing of any potential solid, liquid or gaseous pollutant

which if released without treatment, pretreatment, modification or

disposal might be harmful, detrimental or offensive to human, plant or

animal life, or to property.

This term does not include any of the

following:

Any facility with the primary purpose of eliminating, containing,

preventing or reducing radioactive contaminants or energy, or

treating waste water produced by the nuclear generation of

electric power;

Large diameter pipes or piping systems used to remove and

disperse heat from water involved in the nuclear generation of

electric power;

Any facility operated by any person other than a unit of

government, whether within or outside of the territorial

boundaries of a unit of local government, for sewage disposal or

treatment; or

Land underlying a cooling pond.

[35 ILCS 200/11-10]

It is the policy of this State that pollution control facilities should be

valued at 33 1/3% of the fair cash value of their economic productivity to

their owners.

[35 ILCS 200/11-5]

b) Low Sulfur Dioxide Emission Coal Fueled Devices.

For tax purposes, a low

sulfur dioxide emission coal fueled device shall be certified as such by the Board.

[35 ILCS 200/11-50]

1) “Low sulfur dioxide emission coal fueled device” means, for purposes of

this Part,

any device used or intended for the purpose of burning,

combusting or converting locally available coal in a manner which

eliminates or significantly reduces the need for additional sulfur

abatement that would otherwise be required under State or Federal air

emission standards.

For purposes of this definition, the

word device

includes all machinery, equipment, structures and all related apparatus,

including coal feeding equipment, of a coal gasification facility designed

to convert locally available coal into a low sulfur gaseous fuel and to

manage all waste and by-product streams.

[35 ILCS 200/11-40]

It is the policy of this State that the use of low sulfur dioxide emission coal

fueled devices should be encouraged as conserving nonrenewable

resources, reducing pollution and promoting the use of abundant, high-

sulfur, locally available coal as well as promoting the health and well-

being of the people of this State, and should be valued at 33 1/3% of their

fair cash value.

[35 ILCS 200/11-35]

Section 125.202 Tax Certification Application

A person may apply for tax certification by submitting a tax certification form to the Agency on

a form or forms that the Agency may prescribe.

Section 125.204 Agency Recommendation

a) If the Agency receives a tax certification application under Section 125.202 of

this Subpart, the Agency must file a recommendation on the application with the

Clerk, unless the applicant withdraws the application. The Agency’s filing must:

1) Identify the name and address of the applicant;

2) Identify the location of the facility or portion thereof or the device to

which the recommendation applies;

3) Identify the facility or portion thereof or the device to which the

recommendation applies;

4) Recommend that the Board issue or deny tax certification; and

5) Set forth the Agency’s reasoning for the recommendation.

b) If the Agency recommends that the Board deny tax certification, the Agency’s

filing must state that the applicant has 35 days after the date of service thereof to

file a petition with the Board to contest the Agency recommendation. If the

Agency recommends that the Board deny tax certification due to informational

deficiencies in the application, the Agency’s filing must identify the types of

information needed to correct the deficiencies.

c) The Agency must serve the applicant with a copy of the filing under this Section.

Section 125.206 Petition to Contest

a) If the applicant wishes to contest an Agency recommendation that the Board deny

tax certification, the applicant must file a petition to contest with the Clerk within

35 days after the Agency serves the applicant under Section 125.204(c) of this

Subpart. The petition must:

1) Specify the grounds for contesting the Agency’s recommendation; and

2) Specify the date on which the Agency served the applicant under Section

125.204(c) of this Subpart.

b) The applicant must serve the Agency with a copy of any petition to contest under

subsection (a) of this Section.

Section 125.208 Agency Record

The Agency must file with the Board the entire record on which it based its recommendation

within 30 days after the applicant files a petition to contest under Section 125.206 of this

Subpart, unless the Board or hearing officer orders otherwise. If the Agency wishes to seek

additional time to file the record, it must file a request for extension before the date on which the

record is due to be filed.

Section 125.210 Public Hearing

a) The Board will hold a public hearing in a tax certification proceeding if:

1) The applicant files a petition to contest in accordance with Section

125.206 of this Subpart, unless the Board disposes of the petition on a

motion for summary judgment brought pursuant to 35 Ill. Adm. Code

101.516; or

2) The Board in its discretion determines that a hearing would be advisable.

b) If a hearing is to be held, the hearing officer will set a time and place for the

hearing. The hearing officer will make an attempt to consult with the applicant

and the Agency before scheduling a hearing. Hearings will be held in the county

where the facility or portion thereof or the device for which the applicant seeks

tax certification is located, unless the hearing officer orders otherwise.

Section 125.212 Hearing Notice

After receiving notification from the hearing officer of the scheduled hearing date made pursuant

to Section 125.210 of this Subpart, the Clerk will, in accordance with 35 Ill. Adm. Code 101,

cause publication of a notice of hearing in a newspaper of general circulation in the county

where the facility or portion thereof or the device for which the applicant seeks tax certification

is located.

Section 125.214 Burden of Proof

If the applicant files a petition to contest under Section 125.206 of this Subpart or the Board

otherwise directs that a hearing be held pursuant to Section 125.210 of this Subpart, the applicant

has the burden to prove that the facility or portion thereof for which it seeks tax certification is a

pollution control facility, as defined in Section 125.200(a)(1) of this Subpart, or that the device

for which it seeks tax certification is a low sulfur dioxide emission coal fueled device, as defined

in Section 125.200(b)(1) of this Subpart.

Section 125.216 Board Action

a) Pollution Control Facilities.

If it is found that the claimed facility or relevant

portion thereof is a pollution control facility as defined in

Section 125.200(a)(1)

of this Part,

the Board shall enter a finding and issue a certificate to that effect.

The certificate shall require tax treatment as a pollution control facility, but only

for the portion certified if only a portion is certified. The effective date of a

certificate shall be the date of

the application

for the certificate or the date of the

construction of the facility, whichever is later.

[35 ILCS 200/11-25]

b) Low Sulfur Dioxide Emission Coal Fueled Devices.

If it is found that the claimed

device meets the definition

of low sulfur dioxide emission coal fueled device as

set forth in Section 125.200(b)(1) of this Part,

the Board shall enter a finding and

issue a certificate that requires tax treatment as a low sulfur dioxide emission

coal fueled device. The effective date of a certificate shall be on January 1

preceding the date of certification or preceding the date construction or

installation of the device commences, whichever is later.

[35 ILCS 200/11-55]

c) After notice to the holder of the certificate and an opportunity for a hearing

pursuant to this Subpart,

the Board may on its own initiative revoke or modify a

pollution control certificate or a low sulfur dioxide emission coal fueled device

certificate whenever any of the following appears:

The certificate was obtained by fraud or misrepresentation;

The holder of the certificate has failed substantially to proceed with the

construction, reconstruction, installation, or acquisition of pollution

control facilities or a low sulfur dioxide emission coal fueled device; or

The pollution control facility to which the certificate relates has ceased to

be used for the primary purpose of pollution control and is being used for

a different purpose.

[35 ILCS 200/11-30]

d) The Clerk will provide the applicant and the Agency with a copy of the Board’s order

setting forth

the Board’s findings and certificate, if any

[35 ILCS 200/11-30].

(Source: Amended at 29 Ill. Reg. 8838, effective June 8, 2005)