97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5660

 

Introduced 2/16/2012, by Rep. Dave Winters

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-10

    Amends the Illinois Power Agency Act. Specifies that the term "clean coal facility" includes an electric generating facility that uses either (1) synthetic gas created by the gasification of municipal solid waste, including, but not limited to, non-recycled plastics from a municipal solid waste facility, or (2) fuel produced by pyrolysis of organic or waste material from a municipal solid waste facility. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Power Agency Act is amended by
5changing Section 1-10 as follows:
 
6    (20 ILCS 3855/1-10)
7    Sec. 1-10. Definitions.
8    "Agency" means the Illinois Power Agency.
9    "Agency loan agreement" means any agreement pursuant to
10which the Illinois Finance Authority agrees to loan the
11proceeds of revenue bonds issued with respect to a project to
12the Agency upon terms providing for loan repayment installments
13at least sufficient to pay when due all principal of, interest
14and premium, if any, on those revenue bonds, and providing for
15maintenance, insurance, and other matters in respect of the
16project.
17    "Authority" means the Illinois Finance Authority.
18    "Clean coal facility" means an electric generating
19facility that uses primarily coal as a feedstock and that
20captures and sequesters carbon dioxide emissions at the
21following levels: at least 50% of the total carbon dioxide
22emissions that the facility would otherwise emit if, at the
23time construction commences, the facility is scheduled to

 

 

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1commence operation before 2016, at least 70% of the total
2carbon dioxide emissions that the facility would otherwise emit
3if, at the time construction commences, the facility is
4scheduled to commence operation during 2016 or 2017, and at
5least 90% of the total carbon dioxide emissions that the
6facility would otherwise emit if, at the time construction
7commences, the facility is scheduled to commence operation
8after 2017. The power block of the clean coal facility shall
9not exceed allowable emission rates for sulfur dioxide,
10nitrogen oxides, carbon monoxide, particulates and mercury for
11a natural gas-fired combined-cycle facility the same size as
12and in the same location as the clean coal facility at the time
13the clean coal facility obtains an approved air permit. All
14coal used by a clean coal facility shall have high volatile
15bituminous rank and greater than 1.7 pounds of sulfur per
16million btu content, unless the clean coal facility does not
17use gasification technology and was operating as a conventional
18coal-fired electric generating facility on June 1, 2009 (the
19effective date of Public Act 95-1027). "Clean coal facility"
20also includes an electric generating facility that uses either
21(1) synthetic gas created by the gasification of municipal
22solid waste, including, but not limited to, non-recycled
23plastics from a municipal solid waste facility, or (2) fuel
24produced by pyrolysis of organic or waste material from a
25municipal solid waste facility.
26    "Clean coal SNG brownfield facility" means a facility that

 

 

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1(1) has commenced construction by July 1, 2015 on an urban
2brownfield site in a municipality with at least 1,000,000
3residents; (2) uses a gasification process to produce
4substitute natural gas; (3) uses coal as at least 50% of the
5total feedstock over the term of any sourcing agreement with a
6utility and the remainder of the feedstock may be either
7petroleum coke or coal, with all such coal having a high
8bituminous rank and greater than 1.7 pounds of sulfur per
9million Btu content unless the facility reasonably determines
10that it is necessary to use additional petroleum coke to
11deliver additional consumer savings, in which case the facility
12shall use coal for at least 35% of the total feedstock over the
13term of any sourcing agreement; and (4) captures and sequesters
14at least 85% of the total carbon dioxide emissions that the
15facility would otherwise emit.
16    "Clean coal SNG facility" means a facility that uses a
17gasification process to produce substitute natural gas, that
18sequesters at least 90% of the total carbon dioxide emissions
19that the facility would otherwise emit, that uses at least 90%
20coal as a feedstock, with all such coal having a high
21bituminous rank and greater than 1.7 pounds of sulfur per
22million btu content, and that has a valid and effective permit
23to construct emission sources and air pollution control
24equipment and approval with respect to the federal regulations
25for Prevention of Significant Deterioration of Air Quality
26(PSD) for the plant pursuant to the federal Clean Air Act;

 

 

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1provided, however, a clean coal SNG brownfield facility shall
2not be a clean coal SNG facility.
3    "Commission" means the Illinois Commerce Commission.
4    "Costs incurred in connection with the development and
5construction of a facility" means:
6        (1) the cost of acquisition of all real property,
7    fixtures, and improvements in connection therewith and
8    equipment, personal property, and other property, rights,
9    and easements acquired that are deemed necessary for the
10    operation and maintenance of the 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, contingency, as
20    required by lenders, and other financing costs, and other
21    expenses for professional 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

 

 

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1    incidental to the financing, insuring, acquisition, and
2    construction of a specific project and starting up,
3    commissioning, and placing that project in operation.
4    "Department" means the Department of Commerce and Economic
5Opportunity.
6    "Director" means the Director of the Illinois Power Agency.
7    "Demand-response" means measures that decrease peak
8electricity demand or shift demand from peak to off-peak
9periods.
10    "Distributed renewable energy generation device" means a
11device that is:
12        (1) powered by wind, solar thermal energy,
13    photovoltaic cells and panels, biodiesel, crops and
14    untreated and unadulterated organic waste biomass, tree
15    waste, and hydropower that does not involve new
16    construction or significant expansion of hydropower dams;
17        (2) interconnected at the distribution system level of
18    either an electric utility as defined in this Section, an
19    alternative retail electric supplier as defined in Section
20    16-102 of the Public Utilities Act, a municipal utility as
21    defined in Section 3-105 of the Public Utilities Act, or a
22    rural electric cooperative as defined in Section 3-119 of
23    the Public Utilities Act;
24        (3) located on the customer side of the customer's
25    electric meter and is primarily used to offset that
26    customer's electricity load; and

 

 

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1        (4) limited in nameplate capacity to no more than 2,000
2    kilowatts.
3    "Energy efficiency" means measures that reduce the amount
4of electricity or natural gas required to achieve a given end
5use.
6    "Electric utility" has the same definition as found in
7Section 16-102 of the Public Utilities Act.
8    "Facility" means an electric generating unit or a
9co-generating unit that produces electricity along with
10related equipment necessary to connect the facility to an
11electric transmission or distribution system.
12    "Governmental aggregator" means one or more units of local
13government that individually or collectively procure
14electricity to serve residential retail electrical loads
15located within its or their jurisdiction.
16    "Local government" means a unit of local government as
17defined in Article VII of Section 1 of Article VII of the
18Illinois Constitution.
19    "Municipality" means a city, village, or incorporated
20town.
21    "Person" means any natural person, firm, partnership,
22corporation, either domestic or foreign, company, association,
23limited liability company, joint stock company, or association
24and includes any trustee, receiver, assignee, or personal
25representative thereof.
26    "Project" means the planning, bidding, and construction of

 

 

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

 

 

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1demolition debris, other than untreated and unadulterated
2waste wood.
3    "Revenue bond" means any bond, note, or other evidence of
4indebtedness issued by the Authority, the principal and
5interest of which is payable solely from revenues or income
6derived from any project or activity of the Agency.
7    "Sequester" means permanent storage of carbon dioxide by
8injecting it into a saline aquifer, a depleted gas reservoir,
9or an oil reservoir, directly or through an enhanced oil
10recovery process that may involve intermediate storage,
11regardless of whether these activities are conducted by a clean
12coal facility, a clean coal SNG facility, a clean coal SNG
13brownfield facility, or a party with which a clean coal
14facility, or clean coal SNG facility, or clean coal SNG
15brownfield facility has contracted for such purposes.
16    "Sourcing agreement" means (i) in the case of an electric
17utility, an agreement between the owner of a clean coal
18facility and such electric utility, which agreement shall have
19terms and conditions meeting the requirements of paragraph (3)
20of subsection (d) of Section 1-75, (ii) in the case of an
21alternative retail electric supplier, an agreement between the
22owner of a clean coal facility and such alternative retail
23electric supplier, which agreement shall have terms and
24conditions meeting the requirements of Section 16-115(d)(5) of
25the Public Utilities Act, and (iii) in case of a gas utility,
26an agreement between the owner of a clean coal SNG brownfield

 

 

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1facility and the gas utility, which agreement shall have the
2terms and conditions meeting the requirements of subsection
3(h-1) of Section 9-220 of the Public Utilities Act.
4    "Substitute natural gas" or "SNG" means a gas manufactured
5by gasification of hydrocarbon feedstock, which is
6substantially interchangeable in use and distribution with
7conventional natural gas.
8    "Total resource cost test" or "TRC test" means a standard
9that is met if, for an investment in energy efficiency or
10demand-response measures, the benefit-cost ratio is greater
11than one. The benefit-cost ratio is the ratio of the net
12present value of the total benefits of the program to the net
13present value of the total costs as calculated over the
14lifetime of the measures. A total resource cost test compares
15the sum of avoided electric utility costs, representing the
16benefits that accrue to the system and the participant in the
17delivery of those efficiency measures, as well as other
18quantifiable societal benefits, including avoided natural gas
19utility costs, to the sum of all incremental costs of end-use
20measures that are implemented due to the program (including
21both utility and participant contributions), plus costs to
22administer, deliver, and evaluate each demand-side program, to
23quantify the net savings obtained by substituting the
24demand-side program for supply resources. In calculating
25avoided costs of power and energy that an electric utility
26would otherwise have had to acquire, reasonable estimates shall

 

 

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1be included of financial costs likely to be imposed by future
2regulations and legislation on emissions of greenhouse gases.
3(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;
496-784, eff. 8-28-09; 96-1000, eff. 7-2-10; 97-96, eff.
57-13-11; 97-239, eff. 8-2-11; 97-491, eff. 8-22-11; 97-616,
6eff. 10-26-11; revised 11-10-11.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.