Rep. David E. Miller
Filed: 3/24/2009
 
 

 




 

 		












09600HB1470ham001

LRB096 04980 RCE 24262 a






1

AMENDMENT TO HOUSE BILL 1470




2
    AMENDMENT NO. ______. Amend House Bill 1470 by replacing 
3
everything after the enacting clause with the following:

 
4
    "Section 5. The Illinois Power Agency Act is amended  by 
5
changing Section 1-10 as follows:
 
6
    (20 ILCS 3855/1-10)
7
    (Text of Section before amendment by P.A. 95-1027)

8
    Sec. 1-10. Definitions. 
9
    "Agency" means the Illinois Power Agency.
10
    "Agency loan agreement" means any agreement pursuant to 
11
which the Illinois Finance Authority agrees to loan the 
12
proceeds of revenue bonds issued with respect to a project to 
13
the Agency upon terms providing for loan repayment installments 
14
at least sufficient to pay when due all principal of, interest 
15
and premium, if any, on those revenue bonds, and providing for 
16
maintenance, insurance, and other matters in respect of the 
 


 






09600HB1470ham001
- 2 -
LRB096 04980 RCE 24262 a




1
project.
2
    "Authority" means the Illinois Finance Authority.
3
    "Commission" means the Illinois Commerce Commission.
4
    "Costs incurred in connection with the development and 
5
construction of a facility" means:
6
        (1)  the cost of acquisition of all real property and 
7
    improvements in connection therewith and equipment and 
8
    other property, rights, and easements acquired that are 
9
    deemed necessary for the operation and maintenance of the 
10
    facility;
11
        (2)  financing costs with respect to bonds, notes, and 
12
    other evidences of indebtedness of the Agency;
13
        (3) all origination, commitment, utilization, 
14
    facility, placement, underwriting, syndication, credit 
15
    enhancement, and rating agency fees;
16
        (4)  engineering, design, procurement, consulting, 
17
    legal, accounting, title insurance, survey, appraisal, 
18
    escrow, trustee, collateral agency, interest rate hedging, 
19
    interest rate swap, capitalized interest and other 
20
    financing costs, and other expenses for professional 
21
    services; and
22
        (5)  the costs of plans, specifications, site study and 
23
    investigation, installation, surveys, other Agency costs 
24
    and estimates of costs, and other expenses necessary or 
25
    incidental to determining the feasibility of any project, 
26
    together with such other expenses as may be necessary or 
 


 






09600HB1470ham001
- 3 -
LRB096 04980 RCE 24262 a




1
    incidental to the financing, insuring, acquisition, and 
2
    construction of a specific project and placing that project 
3
    in operation.
4
    "Department" means the Department of Commerce and Economic 
5
Opportunity.
6
    "Director" means the Director of the Illinois Power Agency.
7
    "Demand-response" means measures that decrease peak 
8
electricity demand or shift demand from peak to off-peak 
9
periods.
10
    "Energy efficiency" means measures that reduce the amount 
11
of electricity required to achieve a given end use.
12
    "Electric utility" has the same definition as found in 
13
Section 16-102 of the Public Utilities Act.
14
    "Facility" means an electric generating unit or a 
15
co-generating unit that produces electricity along with 
16
related equipment necessary to connect the facility to an 
17
electric transmission or distribution system.
18
    "Governmental aggregator" means one or more units of local 
19
government that individually or collectively procure 
20
electricity to serve residential retail electrical loads 
21
located within its or their jurisdiction.
22
    "Local government" means a  unit of local government as 
23
defined in Article VII of  Section 1 of the Illinois 
24
Constitution.
25
    "Municipality" means a  city, village, or incorporated 
26
town.
 


 






09600HB1470ham001
- 4 -
LRB096 04980 RCE 24262 a




1
    "Person" means any natural person, firm, partnership, 
2
corporation, either  domestic or foreign, company, association, 
3
limited liability company, joint stock company, or association 
4
and includes any trustee, receiver, assignee, or personal 
5
representative thereof.
6
    "Project" means the planning, bidding, and construction of 
7
a facility.
8
    "Public utility" has the same definition as found in 
9
Section 3-105 of the Public Utilities Act.
10
    "Real property" means any interest in land together with 
11
all structures, fixtures, and improvements thereon, including 
12
lands under water and riparian rights, any easements, 
13
covenants, licenses, leases, rights-of-way, uses, and other 
14
interests, together with any liens, judgments, mortgages, or 
15
other claims or security interests related to real property.
16
    "Renewable energy credit" means a tradable credit that 
17
represents the environmental attributes of a certain amount of 
18
energy produced from a renewable energy resource.
19
    "Renewable energy resources" includes energy and its 
20
associated renewable energy credit or renewable energy  credits 
21
from wind, solar thermal energy,  photovoltaic cells and panels, 
22
biodiesel, crops and untreated and unadulterated organic waste 
23
biomass, trees and tree trimmings, hydropower that does not 
24
involve new construction or significant expansion of 
25
hydropower dams, incineration or burning of tires, and other 
26
alternative sources of environmentally preferable energy.  For 
 


 






09600HB1470ham001
- 5 -
LRB096 04980 RCE 24262 a




1
purposes of this Act, landfill gas produced in the State is 
2
considered a renewable energy resource.  "Renewable energy 
3
resources" does not include the incineration or burning of 
4
tires, garbage, general household, institutional, and 
5
commercial waste, industrial lunchroom or office waste, 
6
landscape waste other than trees and tree trimmings, railroad 
7
crossties, utility poles, or construction or demolition 
8
debris, other than untreated and unadulterated waste wood.
9
    "Revenue bond" means any bond, note, or other evidence of 
10
indebtedness issued by the Authority, the principal and 
11
interest of which is payable solely from revenues or income 
12
derived from any project or activity of the Agency.
13
    "Total resource cost test" or "TRC test" means a standard 
14
that is met if, for an investment in energy efficiency or 
15
demand-response measures, the benefit-cost ratio is greater 
16
than one.  The benefit-cost ratio is the ratio of the net 
17
present value of the total benefits of the program to the net 
18
present value of the total costs as calculated over the 
19
lifetime of the measures.  A total resource cost test compares 
20
the sum of avoided electric utility costs, representing the 
21
benefits that accrue to the system and the participant in the 
22
delivery of those efficiency measures, to the sum of all 
23
incremental costs of end-use measures that are implemented due 
24
to the program (including both utility and participant 
25
contributions), plus costs to administer, deliver, and 
26
evaluate each demand-side program, to quantify the net savings 
 


 






09600HB1470ham001
- 6 -
LRB096 04980 RCE 24262 a




1
obtained by substituting the demand-side program for supply 
2
resources.  In calculating avoided costs of power and energy 
3
that an electric utility would otherwise have had to acquire, 
4
reasonable estimates shall be included of financial costs 
5
likely to be imposed by future regulations and legislation on 
6
emissions of greenhouse gases.

7
(Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09.)
 
8
    (Text of Section after amendment by P.A. 95-1027)
9
    Sec. 1-10. Definitions. 
10
    "Agency" means the Illinois Power Agency.
11
    "Agency loan agreement" means any agreement pursuant to 
12
which the Illinois Finance Authority agrees to loan the 
13
proceeds of revenue bonds issued with respect to a project to 
14
the Agency upon terms providing for loan repayment installments 
15
at least sufficient to pay when due all principal of, interest 
16
and premium, if any, on those revenue bonds, and providing for 
17
maintenance, insurance, and other matters in respect of the 
18
project.
19
    "Authority" means the Illinois Finance Authority.
20
    "Clean coal facility" means an electric generating 
21
facility that uses primarily coal as a feedstock and that 
22
captures and sequesters carbon emissions at the following 
23
levels: at least 50% of the total carbon emissions that the 
24
facility would otherwise emit if, at the time construction 
25
commences,  the facility is scheduled to  commence operation 
 


 






09600HB1470ham001
- 7 -
LRB096 04980 RCE 24262 a




1
before 2016, at least 70% of the total carbon emissions that 
2
the facility would otherwise emit if, at the time construction 
3
commences, the facility is scheduled to  commence operation 
4
during 2016 or 2017, and at least 90% of the total carbon 
5
emissions that the facility would otherwise emit if, at the 
6
time construction commences, the facility is scheduled to  
7
commence operation after 2017.  The power block of the clean 
8
coal facility shall not exceed allowable emission rates for 
9
sulfur dioxide, nitrogen oxides, carbon monoxide, particulates 
10
and mercury for a natural gas-fired combined-cycle facility the 
11
same size as and in the same location as the clean coal 
12
facility at the time the clean coal facility obtains an 
13
approved air permit. All coal used by a clean coal facility 
14
shall have high volatile bituminous rank and greater than 1.7 
15
pounds of sulfur per million btu content, unless the clean coal 
16
facility does not use gasification technology and was operating 
17
as a conventional coal-fired electric generating facility on 
18
June 1, 2009 (the effective date of Public Act 95-1027) this 
19
amendatory Act of the 95th General Assembly. 
20
    "Clean coal SNG facility" means a facility that uses a 
21
gasification process to produce substitute natural gas, that 
22
sequesters at least 90% of the total carbon emissions that the 
23
facility would otherwise emit and that uses coal as a 
24
feedstock, with all such coal having a high bituminous rank and 
25
greater than 1.7 pounds of sulfur per million btu content. 
26
    "Commission" means the Illinois Commerce Commission.
 


 






09600HB1470ham001
- 8 -
LRB096 04980 RCE 24262 a




1
    "Costs incurred in connection with the development and 
2
construction of a facility" means:
3
        (1)  the cost of acquisition of all real property and 
4
    improvements in connection therewith and equipment and 
5
    other property, rights, and easements acquired that are 
6
    deemed necessary for the operation and maintenance of the 
7
    facility;
8
        (2)  financing costs with respect to bonds, notes, and 
9
    other evidences of indebtedness of the Agency;
10
        (3) all origination, commitment, utilization, 
11
    facility, placement, underwriting, syndication, credit 
12
    enhancement, and rating agency fees;
13
        (4)  engineering, design, procurement, consulting, 
14
    legal, accounting, title insurance, survey, appraisal, 
15
    escrow, trustee, collateral agency, interest rate hedging, 
16
    interest rate swap, capitalized interest and other 
17
    financing costs, and other expenses for professional 
18
    services; and
19
        (5)  the costs of plans, specifications, site study and 
20
    investigation, installation, surveys, other Agency costs 
21
    and estimates of costs, and other expenses necessary or 
22
    incidental to determining the feasibility of any project, 
23
    together with such other expenses as may be necessary or 
24
    incidental to the financing, insuring, acquisition, and 
25
    construction of a specific project and placing that project 
26
    in operation.
 


 






09600HB1470ham001
- 9 -
LRB096 04980 RCE 24262 a




1
    "Department" means the Department of Commerce and Economic 
2
Opportunity.
3
    "Director" means the Director of the Illinois Power Agency.
4
    "Demand-response" means measures that decrease peak 
5
electricity demand or shift demand from peak to off-peak 
6
periods.
7
    "Energy efficiency" means measures that reduce the amount 
8
of electricity required to achieve a given end use.
9
    "Electric utility" has the same definition as found in 
10
Section 16-102 of the Public Utilities Act.
11
    "Facility" means an electric generating unit or a 
12
co-generating unit that produces electricity along with 
13
related equipment necessary to connect the facility to an 
14
electric transmission or distribution system.
15
    "Governmental aggregator" means one or more units of local 
16
government that individually or collectively procure 
17
electricity to serve residential retail electrical loads 
18
located within its or their jurisdiction.
19
    "Local government" means a  unit of local government as 
20
defined in Article VII of  Section 1 of the Illinois 
21
Constitution.
22
    "Municipality" means a  city, village, or incorporated 
23
town.
24
    "Person" means any natural person, firm, partnership, 
25
corporation, either  domestic or foreign, company, association, 
26
limited liability company, joint stock company, or association 
 


 






09600HB1470ham001
- 10 -
LRB096 04980 RCE 24262 a




1
and includes any trustee, receiver, assignee, or personal 
2
representative thereof.
3
    "Project" means the planning, bidding, and construction of 
4
a facility.
5
    "Public utility" has the same definition as found in 
6
Section 3-105 of the Public Utilities Act.
7
    "Real property" means any interest in land together with 
8
all structures, fixtures, and improvements thereon, including 
9
lands under water and riparian rights, any easements, 
10
covenants, licenses, leases, rights-of-way, uses, and other 
11
interests, together with any liens, judgments, mortgages, or 
12
other claims or security interests related to real property.
13
    "Renewable energy credit" means a tradable credit that 
14
represents the environmental attributes of a certain amount of 
15
energy produced from a renewable energy resource.
16
    "Renewable energy resources" includes energy and its 
17
associated renewable energy credit or renewable energy  credits 
18
from wind, solar thermal energy,  photovoltaic cells and panels, 
19
biodiesel, crops and untreated and unadulterated organic waste 
20
biomass, trees and tree trimmings, hydropower that does not 
21
involve new construction or significant expansion of 
22
hydropower dams, incineration or burning of tires, and other 
23
alternative sources of environmentally preferable energy.  For 
24
purposes of this Act, landfill gas produced in the State is 
25
considered a renewable energy resource.  "Renewable energy 
26
resources" does not include the incineration or burning of 
 


 






09600HB1470ham001
- 11 -
LRB096 04980 RCE 24262 a




1
tires, garbage, general household, institutional, and 
2
commercial waste, industrial lunchroom or office waste, 
3
landscape waste other than trees and tree trimmings, railroad 
4
crossties, utility poles, or construction or demolition 
5
debris, other than untreated and unadulterated waste wood.
6
    "Revenue bond" means any bond, note, or other evidence of 
7
indebtedness issued by the Authority, the principal and 
8
interest of which is payable solely from revenues or income 
9
derived from any project or activity of the Agency.
10
    "Sequester" means permanent storage of carbon dioxide by 
11
injecting it into a saline aquifer, a depleted gas reservoir, 
12
or an oil reservoir, directly or through an enhanced oil 
13
recovery process that may involve intermediate storage in a 
14
salt dome. 
15
    "Servicing agreement" means (i) in the case of an electric 
16
utility, an agreement between the owner of a clean coal 
17
facility and such electric utility, which agreement shall have 
18
terms and  conditions meeting the requirements of paragraph (3) 
19
of subsection (d) of Section 1-75, and (ii) in the case of an 
20
alternative retail electric supplier, an agreement between the 
21
owner of a clean coal facility and such alternative retail 
22
electric supplier, which agreement shall have terms and 
23
conditions meeting the requirements of Section 16-115(d)(5) of 
24
the Public Utilities Act. 
25
    "Substitute natural gas" or "SNG" means a gas manufactured 
26
by gasification of hydrocarbon feedstock, which is 
 


 






09600HB1470ham001
- 12 -
LRB096 04980 RCE 24262 a




1
substantially interchangeable in use and distribution with 
2
conventional natural gas. 
3
    "Total resource cost test" or "TRC test" means a standard 
4
that is met if, for an investment in energy efficiency or 
5
demand-response measures, the benefit-cost ratio is greater 
6
than one.  The benefit-cost ratio is the ratio of the net 
7
present value of the total benefits of the program to the net 
8
present value of the total costs as calculated over the 
9
lifetime of the measures.  A total resource cost test compares 
10
the sum of avoided electric utility costs, representing the 
11
benefits that accrue to the system and the participant in the 
12
delivery of those efficiency measures, to the sum of all 
13
incremental costs of end-use measures that are implemented due 
14
to the program (including both utility and participant 
15
contributions), plus costs to administer, deliver, and 
16
evaluate each demand-side program, to quantify the net savings 
17
obtained by substituting the demand-side program for supply 
18
resources.  In calculating avoided costs of power and energy 
19
that an electric utility would otherwise have had to acquire, 
20
reasonable estimates shall be included of financial costs 
21
likely to be imposed by future regulations and legislation on 
22
emissions of greenhouse gases.

23
(Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09; 
24
95-1027, eff. 6-1-09; revised 1-14-09.)
 
25
    Section 95. No acceleration or delay. Where this Act makes 
 


 






09600HB1470ham001
- 13 -
LRB096 04980 RCE 24262 a




1
changes in a statute that is represented in this Act by text 
2
that is not yet or no longer in effect (for example, a Section 
3
represented by multiple versions), the use of that text does 
4
not accelerate or delay the taking effect of (i) the changes 
5
made by this Act or (ii) provisions derived from any other 
6
Public Act.
 

7
    Section 99. Effective date. This Act takes effect upon 
8
becoming law.".