093_HB2866

 
                                     LRB093 09861 SJM 10109 b

 1        AN ACT concerning coal.

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

 4        Section   1.   Short title.  This Act may be cited as the
 5    Illinois Coal Mining and Electric Generation Act.

 6        Section 5. Findings.  The General Assembly finds that:
 7        (1)  Illinois  coal  is  an  abundant  resource  and   an
 8    important  component of Illinois' economy whose use should be
 9    encouraged to the greatest extent  possible  consistent  with
10    protecting human health and the environment.
11        (2)  The  development  of  energy  policies  to promote a
12    safe, sufficient, reliable, and affordable energy  supply  on
13    the  State  and  national  level  is  being  affected  by the
14    on-going deregulation of the power  generation  industry  and
15    the evolving energy markets.
16        (3)  The  Governor's  formation  of an Energy Cabinet and
17    the development of a State energy policy indicates  the  need
18    for  increased  generation  capacity to meet future needs for
19    electricity.
20        (4)  Efforts on the State and federal levels are underway
21    to consider the multiple environmental regulations  affecting
22    electric generating plants in order to improve the ability of
23    government  and  the affected industry to engage in effective
24    planning.

25        Section 10.  Definitions.  For the purposes of this Act:
26        "New electric  generating  facility"  means  a  new  coal
27    burning electricity generating facility as defined in Section
28    605-332  of  the Department of Commerce and Community Affairs
29    Law of the Civil Administrative Code of Illinois.
 
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 1        Section 15.  Purpose.  It is the policy of the  State  to
 2    encourage  increased electric generation capacity to meet the
 3    future needs for electricity in Illinois.   To  further  that
 4    goal this Act provides partial financing for the construction
 5    of new electric generating facilities in Illinois.

 6        Section   905.    The   Energy   Conservation   and  Coal
 7    Development Act is amended by changing Section 8 as follows:

 8        (20 ILCS 1105/8) (from Ch. 96 1/2, par. 7408)
 9        Sec. 8.  Illinois Coal Development Board.
10        (a)  There shall be established as an advisory  board  to
11    the   Department,   the   Illinois  Coal  Development  Board,
12    hereinafter in this Section  called  the  Board.   The  Board
13    shall  be  composed  of  the  following  voting  members: the
14    Director of the Department, who shall  be  Chairman  thereof;
15    the  Deputy  Director  of  the Bureau of Business Development
16    within the Department of Commerce and Community Affairs;  the
17    Director  of  Natural  Resources or that Director's designee;
18    the Director of the Office of Mines and Minerals  within  the
19    Department  of  Natural  Resources;  4 members of the General
20    Assembly (one each appointed by the President of the  Senate,
21    the Senate Minority Leader, the Speaker of the House, and the
22    House  Minority  Leader);  and  8  persons  appointed  by the
23    Governor,  with  the  advice  and  consent  of  the   Senate,
24    including  representatives  of  Illinois  industries that are
25    involved in the extraction, utilization or transportation  of
26    Illinois  coal,  persons  representing  financial  or banking
27    interests  in  the  State,   and   persons   experienced   in
28    international   business  and  economic  development.   These
29    members shall be chosen from persons  of  recognized  ability
30    and  experience  in  their  designated  field.   The  members
31    appointed  by  the Governor shall serve for terms of 4 years,
32    unless otherwise provided in this  subsection.   The  initial
 
                            -3-      LRB093 09861 SJM 10109 b
 1    terms  of  the  original  appointees  shall expire on July 1,
 2    1985, except that the  Governor  shall  designate  3  of  the
 3    original  appointees to serve initial terms that shall expire
 4    on July 1, 1983.  The initial term of the member appointed by
 5    the Governor to fill the office created after  July  1,  1985
 6    shall  expire  on  July  1,  1989.   The initial terms of the
 7    members appointed by the Governor to fill the offices created
 8    by this amendatory Act of 1993 shall expire on July 1,  1995,
 9    and  July  1,  1997,  as determined by the Governor. A member
10    appointed  by  a  Legislative  Leader  shall  serve  for  the
11    duration of the General Assembly  for  which  he  or  she  is
12    appointed,  so  long  as  the member remains a member of that
13    General Assembly.
14        The Board shall meet at least annually or at the call  of
15    the  Chairman.    At  any  time the majority of the Board may
16    petition the Chairman for  a  meeting  of  the  Board.   Nine
17    members  of  the Board shall constitute a quorum.  Members of
18    the Board  shall  be  reimbursed  for  actual  and  necessary
19    expenses incurred while performing their duties as members of
20    the  Board from funds appropriated to the Department for such
21    purpose.
22        (b)  The   Board   shall   provide   advice   and    make
23    recommendations   on  the  following  Department  powers  and
24    duties:
25             (1)  To develop an annual agenda which  may  include
26        but   is   not  limited  to  research  and  methodologies
27        conducted for the purpose of increasing  the  utilization
28        of  Illinois'  coal and other fossil fuel resources, with
29        emphasis on high sulfur coal,  in  the  following  areas:
30        coal  extraction,  preparation and characterization; coal
31        technologies (combustion, gasification, liquefaction, and
32        related  processes);  marketing;  public  awareness   and
33        education,  as  those terms are used in the Illinois Coal
34        Technology Development  Assistance  Act;  transportation;
 
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 1        procurement   of  sites  and  issuance  of  permits;  and
 2        environmental impacts.
 3             (2)  To  support  and   coordinate   Illinois   coal
 4        research,  and  to  approve  projects consistent with the
 5        annual agenda  and  budget  for  coal  research  and  the
 6        purposes of this Act and to approve the annual budget and
 7        operating plan for administration of the Board.
 8             (3)  To   promote   the  coordination  of  available
 9        research  information  on  the  production,  preparation,
10        distribution and uses of Illinois coal.  The Board  shall
11        advise  the  existing  research  institutions  within the
12        State on areas where research may be necessary.
13             (4)  To cooperate to  the  fullest  extent  possible
14        with   State   and   federal  agencies  and  departments,
15        independent organizations, and other  interested  groups,
16        public   and  private,  for  the  purposes  of  promoting
17        Illinois coal resources.
18             (5)  To submit an annual report to the Governor  and
19        the   General   Assembly   outlining   the  progress  and
20        accomplishments made in the year, providing an accounting
21        of funds received and disbursed, reviewing the status  of
22        research   contracts,   and   furnishing  other  relevant
23        information.
24             (6)  To focus on existing coal research  efforts  in
25        carrying  out  its  mission;  to  make  use  of  existing
26        research  facilities  in  Illinois  or other institutions
27        carrying  out  research  on  Illinois  coal;  as  far  as
28        practicable,  to  make  maximum  use  of   the   research
29        facilities  available  at  the  Illinois State Geological
30        Survey, the  Coal  Extraction  and  Utilization  Research
31        Center,   the   Illinois   Coal   Development   Park  and
32        universities and colleges located  within  the  State  of
33        Illinois;  and  to  create  a  consortium or center which
34        conducts,  coordinates   and   supports   coal   research
 
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 1        activities   in  the  State  of  Illinois.   Programmatic
 2        activities of  such  a  consortium  or  center  shall  be
 3        subject  to  approval  by  the  Department  and  shall be
 4        consistent with the purposes of this Act.  The Department
 5        may authorize expenditure of  funds  in  support  of  the
 6        administrative  and  programmatic  operations  of  such a
 7        center  or  consortium  consistent  with  its   statutory
 8        authority.   Administrative  actions undertaken by or for
 9        such a center or  consortium  shall  be  subject  to  the
10        approval of the Department.
11             (7)  To make a reasonable attempt, before initiating
12        any  research  under  this  Act,  to avoid duplication of
13        effort and expense by coordinating the  research  efforts
14        among  various  agencies,  departments,  universities  or
15        organizations, as the case may be.
16             (8)  To  adopt,  amend and repeal rules, regulations
17        and bylaws governing the Board's organization and conduct
18        of business.
19             (9)  To authorize the expenditure of monies from the
20        Coal Technology Development Assistance Fund,  the  Public
21        Utility  Fund  and  other  funds  in  the  State Treasury
22        appropriated  to  the  Department,  consistent  with  the
23        purposes of this Act.
24             (10)  To seek, accept, and expend gifts or grants in
25        any form, from  any  public  agency  or  from  any  other
26        source.   Such  gifts  and grants may be held in trust by
27        the Department and  expended  at  the  direction  of  the
28        Department and in the exercise of the Department's powers
29        and performance of the Department's duties.
30             (11)  To  publish, from time to time, the results of
31        Illinois  coal  research  projects  funded  through   the
32        Department.
33             (12)  To  authorize  loans  from appropriations from
34        the Build Illinois Bond Purposes Fund, the Build Illinois
 
                            -6-      LRB093 09861 SJM 10109 b
 1        Bond Fund and the Illinois  Industrial  Coal  Utilization
 2        Fund.
 3             (13)  To  authorize  expenditures of monies for coal
 4        development projects under the authority of Section 13 of
 5        the General Obligation Bond Act.
 6        (c)  The  Board  shall  also  provide  advice  and   make
 7    recommendations   on  the  following  Department  powers  and
 8    duties:
 9             (1)  To create and maintain  thorough,  current  and
10        accurate  records  on  all markets for and actual uses of
11        coal  mined  in  Illinois,  and  to  make  such   records
12        available to the public upon request.
13             (2)  To  identify all current and anticipated future
14        technical,     economic,      institutional,      market,
15        environmental,  regulatory  and  other impediments to the
16        utilization of Illinois coal.
17             (3)  To monitor and evaluate all proposals and plans
18        of  public  utilities  related  to  compliance  with  the
19        requirements of Title IV of the  federal  Clean  Air  Act
20        Amendments  of  1990,  or  with any other law which might
21        affect the use of Illinois coal, for the purposes of  (i)
22        determining the effects of such proposals or plans on the
23        use  of  Illinois  coal, and (ii) identifying alternative
24        plans or actions which would maintain or increase the use
25        of Illinois coal.
26             (4)  To develop strategies and to  propose  policies
27        to  promote  environmentally responsible uses of Illinois
28        coal for  meeting  electric  power  supply  requirements,
29        including new power generation, and for other purposes.
30             (5)  (Blank).
31    (Source:  P.A.  89-445,  eff.  2-7-96;  90-348,  eff. 1-1-98;
32    90-454, eff. 8-16-97.)

33        Section 910.  The Illinois Coal  and  Energy  Development
 
                            -7-      LRB093 09861 SJM 10109 b
 1    Bond Act is amended by changing Section 2 as follows:

 2        (20 ILCS 1110/2) (from Ch. 96 1/2, par. 4102)
 3        Sec.  2.  As used in this Act, "coal" or "coal resources"
 4    include coal, coal products  or  by-products,  including  the
 5    generation  of  electricity and synthetic fuels. "Development
 6    of  fossil  fuels  and  coal  resources"  includes  research,
 7    development,  and  demonstration  of  improved   methods   of
 8    discovery,  production,  transportation,  sale, distribution,
 9    conversion, utilization, end-use and waste disposal of fossil
10    fuels and coal resources.  "Development of alternative  forms
11    of  energy"  includes research, development and demonstration
12    for the purposes of promoting the adoption and utilization of
13    energy systems, including but not limited  to  solar  heating
14    and    cooling,    solar    passive,    photovoltaic,   wind,
15    bioconversion, geothermal,  hydroelectric,  re-use  of  waste
16    energy,  re-use  of  waste  materials,  and  any other energy
17    system except that which  is  generated  by  nuclear  energy.
18    "Fossil  fuels"  include petroleum, petroleum by-products and
19    natural gas.
20    (Source: P.A. 84-1452.)

21        Section 915.  The General Obligation Bond Act is  amended
22    by changing Sections 2, 7, and 13 as follows:

23        (30 ILCS 330/2) (from Ch. 127, par. 652)
24        Sec.  2.  Authorization for Bonds.  The State of Illinois
25    is authorized to issue, sell and provide for  the  retirement
26    of  General Obligation Bonds of the State of Illinois for the
27    categories and specific  purposes  expressed  in  Sections  2
28    through 8 of this Act, in the total amount of $18,158,149,369
29    $17,658,149,369 $16,908,149,369 $16,015,007,500.
30        The  bonds authorized in this Section 2 and in Section 16
31    of this Act are herein called "Bonds".
 
                            -8-      LRB093 09861 SJM 10109 b
 1        Of the total amount of Bonds authorized in this  Act,  up
 2    to  $2,200,000,000 in aggregate original principal amount may
 3    be issued and  sold  in  accordance  with  the  Baccalaureate
 4    Savings Act in the form of General Obligation College Savings
 5    Bonds.
 6        Of  the  total amount of Bonds authorized in this Act, up
 7    to $300,000,000 in aggregate original principal amount may be
 8    issued and sold in accordance with the Retirement Savings Act
 9    in the form of General Obligation Retirement Savings Bonds.
10        The issuance and sale of Bonds pursuant  to  the  General
11    Obligation  Bond Act is an economical and efficient method of
12    financing the capital and  general  operating  needs  of  the
13    State.   This Act will permit the issuance of a multi-purpose
14    General Obligation Bond  with  uniform  terms  and  features.
15    This  will  not  only lower the cost of registration but also
16    reduce the overall cost of  issuing  debt  by  improving  the
17    marketability of Illinois General Obligation Bonds.
18    (Source:  P.A.  91-39,  eff.  6-15-99;  91-53,  eff  6-30-99;
19    91-710,  eff.  5-17-00;  92-13,  eff.  6-22-01;  92-596, eff.
20    6-28-02; 92-598, eff. 6-28-02; revised 10-8-02.)

21        (30 ILCS 330/7) (from Ch. 127, par. 657)
22        Sec. 7. Coal  and  Energy  Development.   The  amount  of
23    $1,163,200,000  $663,200,000  is authorized to be used by the
24    Department of Commerce and Community  Affairs  for  coal  and
25    energy  development  purposes,  pursuant to Sections 2, 3 and
26    3.1 of the Illinois Coal and Energy Development Bond Act, for
27    the  purposes  specified  in  Section  8.1  of   the   Energy
28    Conservation  and  Coal Development Act, and for the purposes
29    specified in Section 605-332 of the  Department  of  Commerce
30    and  Community  Affairs  of  the Civil Administrative Code of
31    Illinois.  Of this amount:
32        (a)  $115,000,000  is  for  the  specific   purposes   of
33    acquisition,   development,   construction,   reconstruction,
 
                            -9-      LRB093 09861 SJM 10109 b
 1    improvement,  financing, architectural and technical planning
 2    and  installation  of  capital   facilities   consisting   of
 3    buildings,  structures,  durable  equipment, and land for the
 4    purpose of capital development of coal resources  within  the
 5    State  and  for  the purposes specified in Section 8.1 of the
 6    Energy Conservation and Coal Development Act;
 7        (b)  $35,000,000 is for the purposes specified in Section
 8    8.1 of the Energy Conservation and Coal Development  Act  and
 9    making  a  grant to the owner of a generating station located
10    in Illinois and having at least three  coal-fired  generating
11    units  with  accredited  summer  capability  greater than 500
12    megawatts each at such  generating  station  as  provided  in
13    Section 6 of that Bond Act;
14        (c)  $13,200,000   is   for   research,  development  and
15    demonstration of forms of energy other than that derived from
16    coal, either on or off State property; and
17        (d)  $500,000,000  is  for  the  purpose   of   providing
18    financial assistance to new electric generating facilities as
19    provided in Section 605-332 of the Department of Commerce and
20    Community  Affairs  Law  of  the Civil Administrative Code of
21    Illinois; and
22        (e)  $500,000,000  is  for  the   specific   purpose   of
23    partially  financing  new  coal  burning  electric generating
24    facility projects, as provided in the  Illinois  Coal  Mining
25    and  Electric  Generation Act, that use Illinois coal and are
26    sited adjacent  to  Illinois  coal  mines;  the  project  may
27    include  the cost of transmission facilities and the costs of
28    coal handling; the Department  may  consider  stockpiled  air
29    emission  credits  as  a  factor  in  funding  new generating
30    facilities.
31    (Source: P.A. 92-13, eff. 6-22-01.)

32        (30 ILCS 330/13) (from Ch. 127, par. 663)
33        Sec. 13. Appropriation of Proceeds from Sale of Bonds.
 
                            -10-     LRB093 09861 SJM 10109 b
 1        (a)  At all times, the proceeds from the  sale  of  Bonds
 2    issued  pursuant  to this Act are subject to appropriation by
 3    the General Assembly and may be obligated  or  expended  only
 4    with  the  written approval of the Governor, in such amounts,
 5    at such times, and for such purposes as the respective  State
 6    agencies,  as  defined  in  Section 1-7 of the Illinois State
 7    Auditing Act, as amended, deem necessary or desirable for the
 8    specific purposes contemplated in Sections  2  through  8  of
 9    this Act.
10        (b)  Proceeds  from  the sale of Bonds for the purpose of
11    development of coal and alternative forms of energy shall  be
12    expended  in such amounts and at such times as the Department
13    of Commerce  and  Community  Affairs,  with  the  advice  and
14    recommendation  of  the  Illinois  Coal Development Board for
15    coal development projects, may deem necessary  and  desirable
16    for  the  specific  purpose contemplated by Section 7 of this
17    Act. In considering the approval of projects  to  be  funded,
18    the  Department  of Commerce and Community Affairs shall give
19    special consideration to projects designed to  remove  sulfur
20    and  other  pollutants  in the preparation and utilization of
21    coal, and in  the  use  and  operation  of  new  or  existing
22    electric  utility generating plants and industrial facilities
23    which utilize Illinois coal as their primary source of fuel.
24        (c)  Any monies received by any officer  or  employee  of
25    the   state  representing  a  reimbursement  of  expenditures
26    previously paid from general obligation bond  proceeds  shall
27    be  deposited into the General Obligation Bond Retirement and
28    Interest Fund authorized in Section 14 of this Act.
29    (Source: P.A. 89-445, eff. 2-7-96; 90-348, eff. 1-1-98.)

30        Section 99.  Effective date.  This Act  takes  effect  on
31    July 1, 2003.