SB1485sam001 99TH GENERAL ASSEMBLY

Sen. David Koehler

Filed: 3/20/2015

09900SB1485sam001 LRB099 06216 MGM 33102 a

AMENDMENT TO SENATE BILL 1485

AMENDMENT NO. ______. Amend Senate Bill 1485 as follows:

on page 90, immediately below line 13 by inserting the following:

"Section 8. The State Finance Act is amended by adding Section 5.866 as follows:

(30 ILCS 105/5.866 new)

Sec. 5.866. Fossil Emission Reduction Program Fund."; and

by replacing line 24 on page 261 through line 6 on page 267 with the following:

"(b-7) The Fossil Emission Reduction Program.

(1) Notwithstanding the provisions of Section 16-111 of the Public Utilities Act, each public utility, electric cooperative, as defined in Section 3.4 of the Electric Supplier Act, and municipal utility, as referenced in Section 3-105 of the Public Utilities Act, that is engaged in the delivery of electricity or the distribution of natural gas within the State of Illinois shall, upon the effective date of this amendatory Act of the 99th General Assembly through December 31, 2021, assess each of its customer accounts a monthly Fossil Emission Reduction Program Charge, calculated to limit the total amount raised from all customers to $75 million per year. The delivering public utility, municipal electric or gas utility, or electric or gas cooperative for a self-assessing purchaser remains subject to the collection of the fee imposed by this Section.

(2) The Fossil Emission Reduction Program Charge assessed by electric and gas public utilities shall be considered a charge for public utility service.

(3) Moneys collected under this Section shall be deposited in the Fossil Emission Reduction Program by the Department of Revenue for the exclusive purposes of the awarding of competitively bid grants to operators of coal-fueled electric generating plants in Illinois to fund, in part, projects at their plants. Eligible projects include: coal-to-natural gas conversions of Illinois coal plants; heat rate or other efficiency improvements at Illinois coal plants; projects that reduce emissions from criteria pollutants and carbon dioxide at Illinois coal plants; use of biomass at Illinois coal plants; a program to recycle or properly dispose of coal ash; or purchase CO2-offsets owned by operators of coal-fueled generating plants in Illinois.

(4) The Agency shall write rules to administer a competitive grant program for up to 75% of the project costs for eligible projects as defined in paragraph (3).

(5) No individual project may receive more than one grant from the Fossil Emission Reduction Program. Grant duration may be 1 to 5 years, based on estimated time to complete a project, however, grant amounts, once awarded, may not be increased in amount or duration.

(6) If applications for more funds than are available are made to the Fossil Emission Reduction Program in a calendar year, the Agency shall award grants to projects based on the maximum amount of carbon dioxide emission reduction on a per dollar awarded basis.

(7) If a successful bidder fails to complete the project by the specified date or the completed project fails to meet performance metrics specified in the grant contract, the grantee must refund all or part of the grant money based on criteria stated in the contract.

(8) Upon completion of a coal to gas conversion using funds from the Fossil Emission Reduction Fund, the Agency will modify the air permit to prohibit the use of coal at that facility in the future.

(9) By the 20th day of the month following the month in which the charges imposed by this Section were collected, each utility and alternative retail electric supplier collecting charges under this Section shall remit to the Department of Revenue for deposit in the Fossil Emission Reduction Fund moneys received as payment of the charge provided for in this Section on a return prescribed and furnished by the Department of Revenue showing such information as the Department of Revenue may reasonably require.

(10) The charges imposed by this Section shall only apply to customers of municipal electric or gas utilities and electric or gas cooperatives if the municipal electric or gas utility or electric or gas cooperative makes an affirmative decision to impose the charge. If a municipal electric or gas utility or an electric or gas cooperative makes an affirmative decision to impose the charge provided by this Section, the municipal electric or gas utility or electric or gas cooperative shall inform the Department of Revenue in writing of that decision when it begins to impose the charge.

(11) The Department of Revenue may establish such rules as it deems necessary to implement this Section.".