093_HB2866ham002











                                     LRB093 09861 SJM 14171 a

 1                    AMENDMENT TO HOUSE BILL 2866

 2        AMENDMENT NO.     .  Amend House Bill 2866,  AS  AMENDED,
 3    by  replacing  everything  after the enacting clause with the
 4    following:

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

 8        (20 ILCS 605/605-332)
 9        Sec. 605-332.  Financial assistance to energy  generation
10    facilities.
11        (a)  As used in this Section:
12        "New    electric    generating    facility"    means    a
13    newly-constructed   electric  generation  plant  or  a  newly
14    constructed generation  capacity  expansion  at  an  existing
15    facility,  including  the  transmission  lines and associated
16    equipment that transfers electricity from points of supply to
17    points of delivery, and  for  which  foundation  construction
18    commenced  not sooner than July 1, 2001, which is designed to
19    provide  baseload  electric   generation   operating   on   a
20    continuous  basis  throughout  the  year;  and  which  has an
21    aggregate rated generating capacity of at least 400 megawatts
22    for all new units at one site, uses  coal  or  gases  derived
 
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 1    from  coal  as  its  primary  fuel  source,  and supports the
 2    creation of at least 150 new Illinois coal mining jobs.
 3        "Eligible business" means  an  entity  that  proposes  to
 4    construct  a  new  electric  generating facility and that has
 5    applied to the Department  to  receive  financial  assistance
 6    pursuant  to this Section. With respect to use and occupation
 7    taxes, wherever there is a reference to taxes, that reference
 8    means only those taxes paid on Illinois-mined coal used in  a
 9    new electric generating facility.
10        "Department"  means  the  Illinois Department of Commerce
11    and Community Affairs.
12        (b)  The Department is authorized  to  provide  financial
13    assistance to eligible businesses for new electric generating
14    facilities from funds appropriated by the General Assembly as
15    further provided in this Section.
16        An  eligible business seeking qualification for financial
17    assistance  for  a  new  electric  generating  facility,  for
18    purposes of this Section only, shall apply to the  Department
19    in  the  manner  specified by the Department. Any projections
20    provided by an eligible business as part of  the  application
21    shall  be  independently verified in a manner as set forth by
22    the Department. An application  shall  include,  but  not  be
23    limited to:
24             (1)  the  projected or actual completion date of the
25        new electric  generating  facility  for  which  financial
26        assistance is sought;
27             (2)  copies  of  documentation  deemed acceptable by
28        the Department establishing either (i)  the  total  State
29        occupation and use taxes paid on Illinois-mined coal used
30        at  the new electric generating facility for a minimum of
31        4 preceding  calendar  quarters  or  (ii)  the  projected
32        amount   of  State  occupation  and  use  taxes  paid  on
33        Illinois-mined coal used at the new  electric  generating
34        facility  in 4 calendar year quarters after completion of
 
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 1        the  new  electric  generating  facility.  Bond  proceeds
 2        subject to this Section shall  not  be  allocated  to  an
 3        eligible   business   until  the  eligible  business  has
 4        demonstrated the revenue stream sufficient to service the
 5        debt on the bonds; and
 6             (3)  the  actual  or  projected  amount  of  capital
 7        investment by the eligible business in the  new  electric
 8        generating facility.
 9        The  Department  shall  determine  the  maximum amount of
10    financial assistance for eligible  businesses  in  accordance
11    with  this  paragraph.   The  Department  shall  not  provide
12    financial  assistance  from  general obligation bond funds to
13    any  eligible  business  unless   it   receives   a   written
14    certification  from  the Director of the Bureau of the Budget
15    that 80% of the State occupation and use tax receipts  for  a
16    minimum of the preceding 4 calendar quarters for all eligible
17    businesses   or   as  included  in  projections  on  approved
18    applications by eligible businesses equal or exceed  110%  of
19    the  maximum  annual  debt  service  required with respect to
20    general  obligation  bonds  issued  for  that  purpose.   The
21    Department may provide financial assistance not to exceed the
22    amount of State general obligation debt calculated as  above,
23    the  amount  of actual or projected capital investment in the
24    energy generation facility,  or  $100,000,000,  whichever  is
25    less.  Financial assistance received pursuant to this Section
26    may be used for capital facilities consisting  of  buildings,
27    structures,  durable  equipment, and land at the new electric
28    generating  facility.  Subject  to  the  provisions  of   the
29    agreement covering the financial assistance, a portion of the
30    financial  assistance  may  be  required  to be repaid to the
31    State if certain conditions for the governmental  purpose  of
32    the assistance were not met.
33        An eligible business shall file a monthly report with the
34    Illinois   Department   of  Revenue  stating  the  amount  of
 
                            -4-      LRB093 09861 SJM 14171 a
 1    Illinois-mined coal purchased during the previous  month  for
 2    use  in  the  new  electric generating facility, the purchase
 3    price of that coal, the amount of State  occupation  and  use
 4    taxes   paid   on   that   purchase  to  the  seller  of  the
 5    Illinois-mined coal,  and  such  other  information  as  that
 6    Department    may    reasonably   require.    In   sales   of
 7    Illinois-mined coal between  related  parties,  the  purchase
 8    price of the coal must have been determined in an arms-length
 9    transaction.   The  report  shall  be filed with the Illinois
10    Department of Revenue on or before the 20th day of each month
11    on a form provided by that Department.   However,  no  report
12    need be filed by an eligible business in a month when it made
13    no  reportable  purchases  of coal in the previous month. The
14    Illinois Department of Revenue shall  provide  a  summary  of
15    such reports to the Bureau of the Budget.
16        Upon   granting   financial  assistance  to  an  eligible
17    business, the  Department  shall  certify  the  name  of  the
18    eligible  business  to  the  Illinois  Department of Revenue.
19    Beginning with the receipt  of  the  first  report  of  State
20    occupation  and  use  taxes  paid by an eligible business and
21    continuing for a 25-year period, the Illinois  Department  of
22    Revenue  shall  each month pay into the Energy Infrastructure
23    Fund 80% of the net revenue realized from the  6.25%  general
24    rate  on  the  selling  price of Illinois-mined coal that was
25    sold to an eligible business.
26    (Source: P.A. 92-12, eff. 7-1-01.)

27        Section 10.  The Illinois Development  Finance  Authority
28    Act is amended by changing Section 7.90 as follows:

29        (20 ILCS 3505/7.90)
30        Sec. 7.90.  Clean Coal and Energy Project Financing.
31        (a)  Findings  and  declaration  of policy.  It is hereby
32    found and declared that Illinois has abundant coal  resources
 
                            -5-      LRB093 09861 SJM 14171 a
 1    and,  in some areas of Illinois, the demand for power exceeds
 2    the  generating  capacity.   Incentives  to   encourage   the
 3    construction  of  coal-fired  electric  generating  plants in
 4    Illinois to ensure power-generating capacity into the  future
 5    are in the best interests of all of the citizens of Illinois.
 6    The  Authority  is  authorized to issue bonds to help finance
 7    Clean Coal and Energy projects pursuant to this  Section  and
 8    under this Act.
 9        (b)  Definition.  "Clean  Coal and Energy projects" means
10    new electric generating facilities,  as  defined  in  Section
11    605-332  of  the Department of Commerce and Community Affairs
12    Law of the Civil Administrative Code of Illinois,  which  may
13    include mine-mouth power plants, projects that employ the use
14    of  clean  coal  technology,  projects to develop alternative
15    energy sources, including renewable energy projects, projects
16    to provide scrubber technology for existing energy generating
17    plants,  or  projects  to   provide   electric   transmission
18    facilities.
19        (c)  Creation   of  reserve  funds.   The  Authority  may
20    establish and maintain one or more reserve funds  to  enhance
21    bonds  issued  by  the  Authority  for  Clean Coal and Energy
22    projects under this  Section.   There  may  be  one  or  more
23    accounts  in  these  reserve  funds  in  which  there  may be
24    deposited:
25             (1)  any proceeds of bonds issued by  the  Authority
26        required  to  be  deposited  therein  by the terms of any
27        contract between the Authority and its bondholders or any
28        resolution of the Authority;
29             (2)  any other moneys or funds of the Authority that
30        it may  determine  to  deposit  therein  from  any  other
31        source; and
32             (3)  any other moneys or funds made available to the
33        Authority.
34        Subject  to  the terms of any pledge to the owners of any
 
                            -6-      LRB093 09861 SJM 14171 a
 1    bonds, moneys in any reserve fund may be held and applied  to
 2    the payment of the interest, premium, if any, or principal of
 3    bonds or for any other purpose authorized by the Authority.
 4        (d)  Powers and duties.  The Authority has the power:
 5             (1)  To  issue  bonds in one or more series pursuant
 6        to one or more resolutions of the Authority for any Clean
 7        Coal and Energy projects authorized under  this  Section,
 8        within   the   authorization  set  forth  in  subsections
 9        subsection (e) and (e-5).
10             (2)  To provide for the funding of any  reserves  or
11        other funds or accounts deemed necessary by the Authority
12        in connection with any bonds issued by the Authority.
13             (3)  To  pledge  any funds of the Authority or funds
14        made available to the Authority that may  be  applied  to
15        such purpose as security for any bonds or any guarantees,
16        letters of credit, insurance contracts, or similar credit
17        support or liquidity instruments securing the bonds.
18             (4)  To  enter  into  agreements  or  contracts with
19        third parties,  whether  public  or  private,  including,
20        without  limitation,  the  United  States of America, the
21        State, or any department or agency thereof, to obtain any
22        appropriations, grants, loans,  or  guarantees  that  are
23        deemed necessary or desirable by the Authority.  Any such
24        guarantee,  agreement,  or contract may contain terms and
25        provisions necessary or desirable in connection with  the
26        program,  subject  to the requirements established by the
27        Act.
28             (5)  To exercise such other powers as are  necessary
29        or incidental to the foregoing.
30        (e)  Clean   Coal   and  Energy  bond  authorization  and
31    financing limits.  In addition to any other bonds  authorized
32    to   be  issued  under  this  Act,  the  Authority  may  have
33    outstanding, at any time, bonds for the purpose enumerated in
34    this subsection (e) Section in an aggregate principal  amount
 
                            -7-      LRB093 09861 SJM 14171 a
 1    that  shall  not exceed $3,000,000,000, of which no more than
 2    $300,000,000  may   be   issued   to   finance   transmission
 3    facilities,  no  more  than  $500,000,000  may  be  issued to
 4    finance scrubbers at existing generating plants, no more than
 5    $500,000,000 may be  issued  to  finance  alternative  energy
 6    sources,  including  renewable  energy  projects, and no more
 7    than $1,700,000,000 may be issued  to  finance  new  electric
 8    generating  facilities,  as defined in Section 605-332 of the
 9    Department of Commerce and Community Affairs Law of the Civil
10    Administrative Code of Illinois, which may include mine-mouth
11    power plants.  An application for a loan financed  from  bond
12    proceeds  from  a borrower or its affiliates for a Clean Coal
13    and Energy project may not be approved by the  Authority  for
14    an  amount  in excess of $450,000,000 for any borrower or its
15    affiliates.  These bonds shall not constitute an indebtedness
16    or obligation of the  State  of  Illinois  and  it  shall  be
17    plainly  stated  on  the  face  of each bond that it does not
18    constitute an indebtedness or  obligation  of  the  State  of
19    Illinois  but is payable solely from the revenues, income, or
20    other assets of the Authority pledged therefor.
21        (e-5) Additional Clean Coal and Energy bond authorization
22    and  financing  limits.  In  addition  to  any  other   bonds
23    authorized  to  be issued under subsection (e), the Authority
24    may issue bonds for the purposes enumerated in subsection (e)
25    in an  aggregate  principal  amount  that  shall  not  exceed
26    $300,000,000.
27        In the event that the Authority determines that the funds
28    pledged, intercepted, or otherwise received or to be received
29    by  the  Authority for the payment of the principal, premium,
30    if any, and interest during the next State fiscal year on any
31    bonds issued by the Authority under this subsection (e-5) for
32    the specific purposes identified  in  this  subsection  (e-5)
33    will  not  be sufficient for those payments, the Chairman, as
34    soon as is practical,  shall  certify  to  the  Governor  the
 
                            -8-      LRB093 09861 SJM 14171 a
 1    amount  required  by  the  Authority  to enable it to pay the
 2    principal, premium, if any, and interest falling due  on  the
 3    bonds.  The  Governor shall submit the amount so certified to
 4    the General Assembly as soon as practical, but no later  than
 5    the  end  of  the  current  State fiscal year. This paragraph
 6    shall not apply to any bonds as to which the Authority  shall
 7    have   determined,   in   the  resolution  authorizing  their
 8    issuance, that this paragraph shall not apply.  Whenever  the
 9    Authority  makes  such  a  determination,  that fact shall be
10    plainly stated on the face of the bonds and that  fact  shall
11    also be reported to the Governor.
12        In  the  event  of  a  withdrawal  of  moneys from a debt
13    service reserve fund established with respect to any issue or
14    issues of bonds of the Authority under this subsection  (e-5)
15    to  pay  principal and interest on those bonds, the Chairman,
16    as soon as is practical, shall certify to  the  Governor  the
17    amount  required  to  restore  the  reserve fund to the level
18    required in the resolution or indenture securing  the  bonds.
19    The  Governor  shall  submit  the  amount so certified to the
20    General Assembly as soon as practical, but not later than the
21    end of the current State fiscal year.
22        (f)  Criteria   for   participation   in   the   program.
23    Applications to the Authority for financing of any Clean Coal
24    and Energy project shall be reviewed by the Authority.   Upon
25    submission of any such application, the Authority staff shall
26    review  the  application for its completeness and may, at the
27    discretion of the Authority staff,  request  such  additional
28    information  as  it  deems  necessary  or advisable to aid in
29    review.  If the Authority receives applications for financing
30    for Clean Coal and Energy projects  in  excess  of  the  bond
31    authorization  available  for such financing at any one time,
32    it shall consider applications in the order of priority as it
33    shall determine, in consultation with other State agencies.
34    (Source: P.A. 92-12, eff. 7-1-01.)
 
                            -9-      LRB093 09861 SJM 14171 a
 1        Section 99.  Effective date.  This Act  takes  effect  on
 2    July 1, 2003.".