Public Act 094-1030
 		





SB0619 Enrolled
LRB094 04356 RCE 34385 b






    AN ACT concerning State government.

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 

 
    Section 5. The Department of Commerce and Economic 
Opportunity 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:

        (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, 2007
July 1, 2006 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, 2006. 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
in
a new facility.

    "Department" means the Illinois Department of Commerce and

Economic Opportunity.

    (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
Bureau of
the Budget
(now Governor's Office of 
Management and 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 
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
purchased during
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
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
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. 93-167, eff. 7-10-03; 93-1064, eff. 1-13-05; 
94-65, eff. 6-21-05.)

 
    Section 99. Effective date. This Act takes effect upon 
becoming law.