093_HB2867

 
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 1        AN ACT concerning energy production.

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

 4        Section  5.   The  Department  of  Commerce and Community
 5    Affairs Law of the Civil Administrative Code of  Illinois  is
 6    amended by changing Section 605-332 as follows:

 7        (20 ILCS 605/605-332)
 8        Sec.  605-332.  Financial assistance to energy generation
 9    facilities.
10        (a)  As used in this Section:
11        "New    electric    generating    facility"    means    a
12    newly-constructed  electric  generation  plant  or  a   newly
13    constructed  generation  capacity  expansion  at  an existing
14    facility, including the  transmission  lines  and  associated
15    equipment that transfers electricity from points of supply to
16    points  of  delivery,  and  for which foundation construction
17    commenced not sooner than July 1, 2001, which is designed  to
18    provide   baseload   electric   generation   operating  on  a
19    continuous basis  throughout  the  year;  and  which  has  an
20    aggregate rated generating capacity of at least 400 megawatts
21    for  all  new  units  at one site, uses coal or gases derived
22    from coal as  its  primary  fuel  source,  and  supports  the
23    creation of at least 150 new Illinois coal mining jobs.
24        "Eligible  business"  means  an  entity  that proposes to
25    construct a new electric generating  facility  and  that  has
26    applied  to  the  Department  to receive financial assistance
27    pursuant to this Section. With respect to use and  occupation
28    taxes, wherever there is a reference to taxes, that reference
29    means  only those taxes paid on Illinois-mined coal used in a
30    new electric generating facility.
31        "Department" means the Illinois  Department  of  Commerce
 
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 1    and Community Affairs.
 2        (b)  The  Department  is  authorized to provide financial
 3    assistance to eligible businesses for new electric generating
 4    facilities from funds appropriated by the General Assembly as
 5    further provided in this Section.
 6        An eligible business seeking qualification for  financial
 7    assistance  for  a  new  electric  generating  facility,  for
 8    purposes  of this Section only, shall apply to the Department
 9    in the manner specified by the  Department.   An  application
10    shall include, but not be limited to:
11             (1)  the   completion   date  of  the  new  electric
12        generating facility for  which  financial  assistance  is
13        sought;
14             (2)  either   (i)  copies  of  documentation  deemed
15        acceptable by the Department establishing the total State
16        occupation and use taxes paid on Illinois-mined coal used
17        at the new electric generating facility for a minimum  of
18        4 preceding calendar quarters or (ii) a bond equal to the
19        projected  State  occupation  and  use taxes during the 4
20        preceding calendar quarters; and
21             (3)  the  amount  of  capital  investment   by   the
22        eligible   business   in   the  new  electric  generating
23        facility.
24        The Department shall  determine  the  maximum  amount  of
25    financial  assistance  for  eligible businesses in accordance
26    with  this  paragraph.   The  Department  shall  not  provide
27    financial assistance from general obligation  bond  funds  to
28    any   eligible   business   unless   it  receives  a  written
29    certification from the Director of the Bureau of  the  Budget
30    that  80%  of the State occupation and use tax receipts for a
31    minimum of the preceding 4 calendar quarters for all eligible
32    businesses equal or exceed 110% of the  maximum  annual  debt
33    service  required  with  respect  to general obligation bonds
34    issued  for  that  purpose.   The  Department   may   provide
 
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 1    financial  assistance  not  to  exceed  the  amount  of State
 2    general obligation debt calculated as above,  the  amount  of
 3    capital  investment  in  the  energy  generation facility, or
 4    $100,000,000,  whichever  is   less.   Financial   assistance
 5    received  pursuant  to  this  Section may be used for capital
 6    facilities  consisting  of  buildings,  structures,   durable
 7    equipment, and land at the new electric generating facility.
 8        An eligible business shall file a monthly report with the
 9    Illinois   Department   of  Revenue  stating  the  amount  of
10    Illinois-mined coal purchased during the previous  month  for
11    use  in  the  new  electric generating facility, the purchase
12    price of that coal, the amount of State  occupation  and  use
13    taxes   paid   on   that   purchase  to  the  seller  of  the
14    Illinois-mined coal,  and  such  other  information  as  that
15    Department    may    reasonably   require.    In   sales   of
16    Illinois-mined coal between  related  parties,  the  purchase
17    price of the coal must have been determined in an arms-length
18    transaction.   The  report  shall  be filed with the Illinois
19    Department of Revenue on or before the 20th day of each month
20    on a form provided by that Department.   However,  no  report
21    need be filed by an eligible business in a month when it made
22    no  reportable  purchases  of coal in the previous month. The
23    Illinois Department of Revenue shall  provide  a  summary  of
24    such  reports  to  the  Bureau  of  the  Budget. The eligible
25    business need not file a monthly report if it provides a bond
26    to the Department  that  is  equal  to  the  projected  State
27    occupation  and  use  taxes  during  the 4 preceding calendar
28    quarters.
29        Upon  granting  financial  assistance  to   an   eligible
30    business,  the  Department  shall  certify  the  name  of the
31    eligible business to  the  Illinois  Department  of  Revenue.
32    Beginning  with  the  receipt  of  the  first report of State
33    occupation and use taxes paid by  an  eligible  business  and
34    continuing  for  a 25-year period, the Illinois Department of
 
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 1    Revenue shall each month pay into the  Energy  Infrastructure
 2    Fund  80%  of the net revenue realized from the 6.25% general
 3    rate on the selling price of  Illinois-mined  coal  that  was
 4    sold to an eligible business.
 5    (Source: P.A. 92-12, eff. 7-1-01.)

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