Public Act 93-0167
HB2866 Enrolled LRB093 09861 SJM 10109 b
AN ACT concerning coal.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Commerce and Community
Affairs Law of the Civil Administrative Code of Illinois is
amended by changing Section 605-332 as follows:
(20 ILCS 605/605-332)
Sec. 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 which 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.
"Eligible business" means an entity that proposes to
construct a new electric generating 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 in a
new electric generating facility.
"Department" means the Illinois Department of Commerce
and Community Affairs.
(b) The Department is authorized to provide financial
assistance to eligible businesses for new electric generating
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 electric generating 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 electric generating 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 electric generating 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 electric generating
facility in 4 calendar year quarters after completion of
the new electric generating 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 electric
generating 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 Bureau of the Budget
that 80% of the State occupation and use tax receipts for a
minimum of the 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
energy generation 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 electric
generating 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 purchased during the previous month for
use in the new electric generating 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 such other 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 arms-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 the Bureau of the 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. 92-12, eff. 7-1-01.)
Section 10. The Illinois Development Finance Authority
Act is amended by changing Section 7.90 as follows:
(20 ILCS 3505/7.90)
Sec. 7.90. Clean Coal and Energy Project Financing.
(a) Findings and declaration of policy. It is hereby
found and declared that Illinois has abundant coal resources
and, in some areas of Illinois, the demand for power exceeds
the generating capacity. Incentives to encourage the
construction of coal-fired electric generating plants in
Illinois to ensure power-generating capacity into the future
are in the best interests of all of the citizens of Illinois.
The Authority is authorized to issue bonds to help finance
Clean Coal and Energy projects pursuant to this Section and
under this Act.
(b) Definition. "Clean Coal and Energy projects" means
new electric generating facilities, as defined in Section
605-332 of the Department of Commerce and Community Affairs
Law of the Civil Administrative Code of Illinois, which may
include mine-mouth power plants, projects that employ the use
of clean coal technology, projects to develop alternative
energy sources, including renewable energy projects, projects
to provide scrubber technology for existing energy generating
plants, or projects to provide electric transmission
facilities.
(c) Creation of reserve funds. The Authority may
establish and maintain one or more reserve funds to enhance
bonds issued by the Authority for Clean Coal and Energy
projects under this Section. There may be one or more
accounts in these reserve funds in which there may be
deposited:
(1) any proceeds of bonds issued by the Authority
required to be deposited therein by the terms of any
contract between the Authority and its bondholders or any
resolution of the Authority;
(2) any other moneys or funds of the Authority that
it may determine to deposit therein from any other
source; and
(3) any other moneys or funds made available to the
Authority.
Subject to the terms of any pledge to the owners of any
bonds, moneys in any reserve fund may be held and applied to
the payment of the interest, premium, if any, or principal of
bonds or for any other purpose authorized by the Authority.
(d) Powers and duties. The Authority has the power:
(1) To issue bonds in one or more series pursuant
to one or more resolutions of the Authority for any Clean
Coal and Energy projects authorized under this Section,
within the authorization set forth in subsections
subsection (e) and (e-5).
(2) To provide for the funding of any reserves or
other funds or accounts deemed necessary by the Authority
in connection with any bonds issued by the Authority.
(3) To pledge any funds of the Authority or funds
made available to the Authority that may be applied to
such purpose as security for any bonds or any guarantees,
letters of credit, insurance contracts, or similar credit
support or liquidity instruments securing the bonds.
(4) To enter into agreements or contracts with
third parties, whether public or private, including,
without limitation, the United States of America, the
State, or any department or agency thereof, to obtain any
appropriations, grants, loans, or guarantees that are
deemed necessary or desirable by the Authority. Any such
guarantee, agreement, or contract may contain terms and
provisions necessary or desirable in connection with the
program, subject to the requirements established by the
Act.
(5) To exercise such other powers as are necessary
or incidental to the foregoing.
(e) Clean Coal and Energy bond authorization and
financing limits. In addition to any other bonds authorized
to be issued under this Act, the Authority may have
outstanding, at any time, bonds for the purpose enumerated in
this subsection (e) Section in an aggregate principal amount
that shall not exceed $3,000,000,000, of which no more than
$300,000,000 may be issued to finance transmission
facilities, no more than $500,000,000 may be issued to
finance scrubbers at existing generating plants, no more than
$500,000,000 may be issued to finance alternative energy
sources, including renewable energy projects, and no more
than $1,700,000,000 may be issued to finance new electric
generating facilities, as defined in Section 605-332 of the
Department of Commerce and Community Affairs Law of the Civil
Administrative Code of Illinois, which may include mine-mouth
power plants. An application for a loan financed from bond
proceeds from a borrower or its affiliates for a Clean Coal
and Energy project may not be approved by the Authority for
an amount in excess of $450,000,000 for any borrower or its
affiliates. These bonds shall not constitute an indebtedness
or obligation of the State of Illinois and it shall be
plainly stated on the face of each bond that it does not
constitute an indebtedness or obligation of the State of
Illinois but is payable solely from the revenues, income, or
other assets of the Authority pledged therefor.
(e-5) Additional Clean Coal and Energy bond authorization
and financing limits. In addition to any other bonds
authorized to be issued under subsection (e), the Authority
may issue bonds for the purposes enumerated in subsection (e)
in an aggregate principal amount that shall not exceed
$300,000,000.
In the event that the Authority determines that the funds
pledged, intercepted, or otherwise received or to be received
by the Authority for the payment of the principal, premium,
if any, and interest during the next State fiscal year on any
bonds issued by the Authority under this subsection (e-5) for
the specific purposes identified in this subsection (e-5)
will not be sufficient for those payments, the Chairman, as
soon as is practical, shall certify to the Governor the
amount required by the Authority to enable it to pay the
principal, premium, if any, and interest falling due on the
bonds. The Governor shall submit the amount so certified to
the General Assembly as soon as practical, but no later than
the end of the current State fiscal year. This paragraph
shall not apply to any bonds as to which the Authority shall
have determined, in the resolution authorizing their
issuance, that this paragraph shall not apply. Whenever the
Authority makes such a determination, that fact shall be
plainly stated on the face of the bonds and that fact shall
also be reported to the Governor.
In the event of a withdrawal of moneys from a debt
service reserve fund established with respect to any issue or
issues of bonds of the Authority under this subsection (e-5)
to pay principal and interest on those bonds, the Chairman,
as soon as is practical, shall certify to the Governor the
amount required to restore the reserve fund to the level
required in the resolution or indenture securing the bonds.
The Governor shall submit the amount so certified to the
General Assembly as soon as practical, but not later than the
end of the current State fiscal year.
(f) Criteria for participation in the program.
Applications to the Authority for financing of any Clean Coal
and Energy project shall be reviewed by the Authority. Upon
submission of any such application, the Authority staff shall
review the application for its completeness and may, at the
discretion of the Authority staff, request such additional
information as it deems necessary or advisable to aid in
review. If the Authority receives applications for financing
for Clean Coal and Energy projects in excess of the bond
authorization available for such financing at any one time,
it shall consider applications in the order of priority as it
shall determine, in consultation with other State agencies.
(Source: P.A. 92-12, eff. 7-1-01.)
Section 99. Effective date. This Act takes effect on
July 1, 2003.