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20 ILCS 605/605-332
(20 ILCS 605/605-332)
Financial assistance to energy generation facilities.
(a) As used in this Section:
"New electric generating facility" means a newly-constructed electric
generation plant or a newly constructed generation capacity expansion at an
existing facility, including the transmission lines and associated equipment
that transfers electricity from points of supply to points of delivery, and for
which foundation construction commenced not sooner than July 1, 2001, which is
designed to provide baseload electric generation operating on a continuous
basis throughout the year and:
(1) has an aggregate rated generating capacity of at
least 400 megawatts for all new units at one site, uses coal or gases derived from coal as its primary fuel source, and supports the creation of at least 150 new Illinois coal mining jobs; or
(2) is funded through a federal Department of Energy
grant before December 31, 2010 and supports the creation of Illinois coal-mining jobs; or
(3) uses coal gasification or integrated
gasification-combined cycle units that generate electricity or chemicals, or both, and supports the creation of Illinois coal-mining jobs.
"New gasification facility" means a newly constructed coal gasification facility that generates chemical feedstocks or transportation fuels derived from coal (which may include, but are not limited to, methane, methanol, and nitrogen fertilizer), that supports the creation or retention of Illinois coal-mining jobs, and that qualifies for financial assistance from the Department before December 31, 2010. A new gasification facility does not include a pilot project located within Jefferson County or within a county adjacent to Jefferson County for synthetic natural gas from coal.
"New facility" means a new electric generating facility or a new gasification facility. A new facility does not include a pilot project located within Jefferson County or within a county adjacent to Jefferson County for synthetic natural gas from coal.
"Eligible business" means an entity that proposes to construct a new facility and that has applied to the Department to receive financial
assistance pursuant to this Section.
With respect to use and occupation taxes, wherever there is a reference to
taxes, that reference means only those taxes paid on Illinois-mined coal used
a new facility.
"Department" means the Illinois Department of Commerce and
(b) The Department is authorized to
provide financial assistance to eligible businesses for new
facilities from funds appropriated by the General Assembly as further provided
in this Section.
An eligible business seeking qualification for financial assistance for
a new facility, for purposes of this Section only, shall
apply to the Department in the manner specified by the Department. Any
projections provided by an eligible business as part of the application shall
be independently verified in a manner as set forth by the Department. An
application shall include, but not
be limited to:
(1) the projected or actual completion date of the
new facility for which financial assistance is sought;
(2) copies of documentation deemed acceptable by the
Department establishing either (i) the total State occupation and use taxes paid on Illinois-mined coal used at the new facility for a minimum of 4 preceding calendar quarters or (ii) the projected amount of State occupation and use taxes paid on Illinois-mined coal used at the new facility in 4 calendar year quarters after completion of the new facility. Bond proceeds subject to this Section shall not be allocated to an eligible business until the eligible business has demonstrated the revenue stream sufficient to service the debt on the bonds; and
(3) the actual or projected amount of capital
investment by the eligible business in the new facility.
The Department shall determine the maximum amount of financial
assistance for eligible businesses in accordance with this paragraph. The
Department shall not provide financial assistance from general obligation bond
funds to any eligible business
unless it receives a written certification from the Director of the
(now Governor's Office of Management and Budget)
that 80% of the State occupation and use tax receipts for a minimum
preceding 4 calendar quarters for all eligible businesses or as included in
projections on approved applications by eligible businesses equal or exceed
110% of the maximum annual debt service required with respect to general
obligation bonds issued for that purpose. The Department may provide
financial assistance not to exceed the amount of State general obligation
debt calculated as above, the amount of actual or projected capital
investment in the facility, or $100,000,000, whichever is less.
Financial assistance received pursuant to this Section may be used
for capital facilities consisting of buildings, structures, durable equipment,
and land at the new facility. Subject to the provisions
of the agreement covering the financial assistance, a portion of the financial
assistance may be required to be repaid to the State if certain conditions for
the governmental purpose of the assistance were not met.
An eligible business shall file a monthly report with the
Illinois Department of Revenue stating the amount of Illinois-mined coal
the previous month for use in the new facility, the
purchase price of that coal, the amount of State
occupation and use taxes paid on that purchase to the seller of the
Illinois-mined coal, and
information as that Department may reasonably require. In sales of
Illinois-mined coal between related parties, the purchase price of the coal
must have been determined in an arm's-length transaction. The report shall be
filed with the Illinois Department of Revenue on or before the 20th day of
each month on a form provided by that Department. However, no report
need be filed by an eligible business in a month when it made
no reportable purchases of coal in the previous month.
The Illinois Department of Revenue shall provide a summary of such reports to
Governor's Office of Management and Budget.
Upon granting financial assistance to an eligible business, the Department
shall certify the name of the eligible business to the Illinois Department of
Revenue. Beginning with the receipt of the first report of State occupation
and use taxes paid by an
eligible business and continuing for a 25-year period, the Illinois Department
of Revenue shall each month pay into the Energy Infrastructure Fund 80% of the
net revenue realized from the 6.25% general rate on the selling price of
Illinois-mined coal that was sold to an eligible business.
(Source: P.A. 98-463, eff. 8-16-13.)