Full Text of SB2169 97th General Assembly
SB2169enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 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 | | Sec. 1-10. Definitions. | 8 | | "Agency" means the Illinois Power Agency. | 9 | | "Agency loan agreement" means any agreement pursuant to | 10 | | which the Illinois Finance Authority agrees to loan the | 11 | | proceeds of revenue bonds issued with respect to a project to | 12 | | the Agency upon terms providing for loan repayment installments | 13 | | at least sufficient to pay when due all principal of, interest | 14 | | and premium, if any, on those revenue bonds, and providing for | 15 | | maintenance, insurance, and other matters in respect of the | 16 | | project. | 17 | | "Authority" means the Illinois Finance Authority. | 18 | | "Clean coal facility" means an electric generating | 19 | | facility that uses primarily coal as a feedstock and that | 20 | | captures and sequesters carbon dioxide emissions at the | 21 | | following levels: at least 50% of the total carbon dioxide | 22 | | emissions that the facility would otherwise emit if, at the | 23 | | time construction commences, the facility is scheduled to |
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| 1 | | commence operation before 2016, at least 70% of the total | 2 | | carbon dioxide emissions that the facility would otherwise emit | 3 | | if, at the time construction commences, the facility is | 4 | | scheduled to commence operation during 2016 or 2017, and at | 5 | | least 90% of the total carbon dioxide emissions that the | 6 | | facility would otherwise emit if, at the time construction | 7 | | commences, the facility is scheduled to commence operation | 8 | | after 2017. The power block of the clean coal facility shall | 9 | | not exceed allowable emission rates for sulfur dioxide, | 10 | | nitrogen oxides, carbon monoxide, particulates and mercury for | 11 | | a natural gas-fired combined-cycle facility the same size as | 12 | | and in the same location as the clean coal facility at the time | 13 | | the clean coal facility obtains an approved air permit. All | 14 | | coal used by a clean coal facility shall have high volatile | 15 | | bituminous rank and greater than 1.7 pounds of sulfur per | 16 | | million btu content, unless the clean coal facility does not | 17 | | use gasification technology and was operating as a conventional | 18 | | coal-fired electric generating facility on June 1, 2009 (the | 19 | | effective date of Public Act 95-1027). | 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 at least 90% | 24 | | petroleum coke or coal as a feedstock, with all such coal | 25 | | having a high bituminous rank and greater than 1.7 pounds of | 26 | | sulfur per million btu content , and that has a valid and |
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| 1 | | effective permit to construct emission sources and air | 2 | | pollution control equipment and approval with respect to the | 3 | | federal regulations for Prevention of Significant | 4 | | Deterioration of Air Quality (PSD) for the plant pursuant to | 5 | | the federal Clean Air Act . | 6 | | "Commission" means the Illinois Commerce Commission. | 7 | | "Costs incurred in connection with the development and | 8 | | construction of a facility" means: | 9 | | (1) the cost of acquisition of all real property , | 10 | | fixtures, and improvements in connection therewith and | 11 | | equipment , personal property, and other property, rights, | 12 | | and easements acquired that are deemed necessary for the | 13 | | operation and maintenance of the facility; | 14 | | (2) financing costs with respect to bonds, notes, and | 15 | | other evidences of indebtedness of the Agency; | 16 | | (3) all origination, commitment, utilization, | 17 | | facility, placement, underwriting, syndication, credit | 18 | | enhancement, and rating agency fees; | 19 | | (4) engineering, design, procurement, consulting, | 20 | | legal, accounting, title insurance, survey, appraisal, | 21 | | escrow, trustee, collateral agency, interest rate hedging, | 22 | | interest rate swap, capitalized interest , contingency, as | 23 | | required by lenders, and other financing costs, and other | 24 | | expenses for professional services; and | 25 | | (5) the costs of plans, specifications, site study and | 26 | | investigation, installation, surveys, other Agency costs |
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| 1 | | and estimates of costs, and other expenses necessary or | 2 | | incidental to determining the feasibility of any project, | 3 | | together with such other expenses as may be necessary or | 4 | | incidental to the financing, insuring, acquisition, and | 5 | | construction of a specific project and starting up, | 6 | | commissioning, and placing that project in operation. | 7 | | "Department" means the Department of Commerce and Economic | 8 | | Opportunity. | 9 | | "Director" means the Director of the Illinois Power Agency. | 10 | | "Demand-response" means measures that decrease peak | 11 | | electricity demand or shift demand from peak to off-peak | 12 | | periods. | 13 | | "Energy efficiency" means measures that reduce the amount | 14 | | of electricity or natural gas required to achieve a given end | 15 | | use. | 16 | | "Electric utility" has the same definition as found in | 17 | | Section 16-102 of the Public Utilities Act. | 18 | | "Facility" means an electric generating unit or a | 19 | | co-generating unit that produces electricity along with | 20 | | related equipment necessary to connect the facility to an | 21 | | electric transmission or distribution system. | 22 | | "Governmental aggregator" means one or more units of local | 23 | | government that individually or collectively procure | 24 | | electricity to serve residential retail electrical loads | 25 | | located within its or their jurisdiction. | 26 | | "Local government" means a unit of local government as |
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| 1 | | defined in Article VII of Section 1 of the Illinois | 2 | | Constitution. | 3 | | "Municipality" means a city, village, or incorporated | 4 | | town. | 5 | | "Person" means any natural person, firm, partnership, | 6 | | corporation, either domestic or foreign, company, association, | 7 | | limited liability company, joint stock company, or association | 8 | | and includes any trustee, receiver, assignee, or personal | 9 | | representative thereof. | 10 | | "Project" means the planning, bidding, and construction of | 11 | | a facility. | 12 | | "Public utility" has the same definition as found in | 13 | | Section 3-105 of the Public Utilities Act. | 14 | | "Real property" means any interest in land together with | 15 | | all structures, fixtures, and improvements thereon, including | 16 | | lands under water and riparian rights, any easements, | 17 | | covenants, licenses, leases, rights-of-way, uses, and other | 18 | | interests, together with any liens, judgments, mortgages, or | 19 | | other claims or security interests related to real property. | 20 | | "Renewable energy credit" means a tradable credit that | 21 | | represents the environmental attributes of a certain amount of | 22 | | energy produced from a renewable energy resource. | 23 | | "Renewable energy resources" includes energy and its | 24 | | associated renewable energy credit or renewable energy credits | 25 | | from wind, solar thermal energy, photovoltaic cells and panels, | 26 | | biodiesel, crops and untreated and unadulterated organic waste |
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| 1 | | biomass, tree waste, hydropower that does not involve new | 2 | | construction or significant expansion of hydropower dams, and | 3 | | other alternative sources of environmentally preferable | 4 | | energy. For purposes of this Act, landfill gas produced in the | 5 | | State is considered a renewable energy resource. "Renewable | 6 | | energy resources" does not include the incineration or burning | 7 | | of tires, garbage, general household, institutional, and | 8 | | commercial waste, industrial lunchroom or office waste, | 9 | | landscape waste other than tree waste, railroad crossties, | 10 | | utility poles, or construction or demolition debris, other than | 11 | | untreated and unadulterated waste wood. | 12 | | "Revenue bond" means any bond, note, or other evidence of | 13 | | indebtedness issued by the Authority, the principal and | 14 | | interest of which is payable solely from revenues or income | 15 | | derived from any project or activity of the Agency. | 16 | | "Sequester" means permanent storage of carbon dioxide by | 17 | | injecting it into a saline aquifer, a depleted gas reservoir, | 18 | | or an oil reservoir, directly or through an enhanced oil | 19 | | recovery process that may involve intermediate storage , | 20 | | regardless of whether these activities are conducted by a clean | 21 | | coal facility, a clean coal SNG facility, or a party with which | 22 | | a clean coal facility or clean coal SNG facility has contracted | 23 | | for such purposes in a salt dome . | 24 | | "Servicing agreement" means (i) in the case of an electric | 25 | | utility, an agreement between the owner of a clean coal | 26 | | facility and such electric utility, which agreement shall have |
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| 1 | | terms and conditions meeting the requirements of paragraph (3) | 2 | | of subsection (d) of Section 1-75, and (ii) in the case of an | 3 | | alternative retail electric supplier, an agreement between the | 4 | | owner of a clean coal facility and such alternative retail | 5 | | electric supplier, which agreement shall have terms and | 6 | | conditions meeting the requirements of Section 16-115(d)(5) of | 7 | | the Public Utilities Act. | 8 | | "Substitute natural gas" or "SNG" means a gas manufactured | 9 | | by gasification of hydrocarbon feedstock, which is | 10 | | substantially interchangeable in use and distribution with | 11 | | conventional natural gas. | 12 | | "Total resource cost test" or "TRC test" means a standard | 13 | | that is met if, for an investment in energy efficiency or | 14 | | demand-response measures, the benefit-cost ratio is greater | 15 | | than one. The benefit-cost ratio is the ratio of the net | 16 | | present value of the total benefits of the program to the net | 17 | | present value of the total costs as calculated over the | 18 | | lifetime of the measures. A total resource cost test compares | 19 | | the sum of avoided electric utility costs, representing the | 20 | | benefits that accrue to the system and the participant in the | 21 | | delivery of those efficiency measures, as well as other | 22 | | quantifiable societal benefits, including avoided natural gas | 23 | | utility costs, to the sum of all incremental costs of end-use | 24 | | measures that are implemented due to the program (including | 25 | | both utility and participant contributions), plus costs to | 26 | | administer, deliver, and evaluate each demand-side program, to |
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| 1 | | quantify the net savings obtained by substituting the | 2 | | demand-side program for supply resources. In calculating | 3 | | avoided costs of power and energy that an electric utility | 4 | | would otherwise have had to acquire, reasonable estimates shall | 5 | | be included of financial costs likely to be imposed by future | 6 | | regulations and legislation on emissions of greenhouse gases.
| 7 | | (Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09; | 8 | | 95-1027, eff. 6-1-09; 96-33, eff. 7-10-09; 96-159, eff. | 9 | | 8-10-09; 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10.)
| 10 | | Section 10. The Illinois Procurement Code is amended by | 11 | | changing Section 1-10 as follows:
| 12 | | (30 ILCS 500/1-10)
| 13 | | Sec. 1-10. Application.
| 14 | | (a) This Code applies only to procurements for which | 15 | | contractors were first
solicited on or after July 1, 1998. This | 16 | | Code shall not be construed to affect
or impair any contract, | 17 | | or any provision of a contract, entered into based on a
| 18 | | solicitation prior to the implementation date of this Code as | 19 | | described in
Article 99, including but not limited to any | 20 | | covenant entered into with respect
to any revenue bonds or | 21 | | similar instruments.
All procurements for which contracts are | 22 | | solicited between the effective date
of Articles 50 and 99 and | 23 | | July 1, 1998 shall be substantially in accordance
with this | 24 | | Code and its intent.
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| 1 | | (b) This Code shall apply regardless of the source of the | 2 | | funds with which
the contracts are paid, including federal | 3 | | assistance moneys.
This Code shall
not apply to:
| 4 | | (1) Contracts between the State and its political | 5 | | subdivisions or other
governments, or between State | 6 | | governmental bodies except as specifically
provided in | 7 | | this Code.
| 8 | | (2) Grants, except for the filing requirements of | 9 | | Section 20-80.
| 10 | | (3) Purchase of care.
| 11 | | (4) Hiring of an individual as employee and not as an | 12 | | independent
contractor, whether pursuant to an employment | 13 | | code or policy or by contract
directly with that | 14 | | individual.
| 15 | | (5) Collective bargaining contracts.
| 16 | | (6) Purchase of real estate, except that notice of this | 17 | | type of contract with a value of more than $25,000 must be | 18 | | published in the Procurement Bulletin within 7 days after | 19 | | the deed is recorded in the county of jurisdiction. The | 20 | | notice shall identify the real estate purchased, the names | 21 | | of all parties to the contract, the value of the contract, | 22 | | and the effective date of the contract.
| 23 | | (7) Contracts necessary to prepare for anticipated | 24 | | litigation, enforcement
actions, or investigations, | 25 | | provided
that the chief legal counsel to the Governor shall | 26 | | give his or her prior
approval when the procuring agency is |
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| 1 | | one subject to the jurisdiction of the
Governor, and | 2 | | provided that the chief legal counsel of any other | 3 | | procuring
entity
subject to this Code shall give his or her | 4 | | prior approval when the procuring
entity is not one subject | 5 | | to the jurisdiction of the Governor.
| 6 | | (8) Contracts for
services to Northern Illinois | 7 | | University by a person, acting as
an independent | 8 | | contractor, who is qualified by education, experience, and
| 9 | | technical ability and is selected by negotiation for the | 10 | | purpose of providing
non-credit educational service | 11 | | activities or products by means of specialized
programs | 12 | | offered by the university.
| 13 | | (9) Procurement expenditures by the Illinois | 14 | | Conservation Foundation
when only private funds are used.
| 15 | | (10) Procurement expenditures by the Illinois Health | 16 | | Information Exchange Authority involving private funds | 17 | | from the Health Information Exchange Fund. "Private funds" | 18 | | means gifts, donations, and private grants. | 19 | | (c) This Code does not apply to the electric power | 20 | | procurement process provided for under Section 1-75 of the | 21 | | Illinois Power Agency Act and Section 16-111.5 of the Public | 22 | | Utilities Act. | 23 | | (d) Except for Section 20-160 and Article 50 of this Code, | 24 | | and as expressly required by Section 9.1 of the Illinois | 25 | | Lottery Law, the provisions of this Code do not apply to the | 26 | | procurement process provided for under Section 9.1 of the |
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| 1 | | Illinois Lottery Law. | 2 | | (e) This Code does not apply to the processes used by the | 3 | | Illinois Power Agency to retain a mediator to mediate contract | 4 | | disputes between gas utilities and the clean coal SNG facility | 5 | | and to retain an expert to assist in the review of contracts | 6 | | under subsection (h) of Section 9-220 of the Public Utilities | 7 | | Act. This Code does not apply to the process used by the | 8 | | Illinois Commerce Commission to retain an expert to assist in | 9 | | determining the actual incurred costs of the clean coal SNG | 10 | | facility and the reasonableness of those costs as required | 11 | | under subsection (h) of Section 9-220 of the Public Utilities | 12 | | Act. | 13 | | (Source: P.A. 95-481, eff. 8-28-07; 95-615, eff. 9-11-07; | 14 | | 95-876, eff. 8-21-08; 96-840, eff. 12-23-09; 96-1331, eff. | 15 | | 7-27-10.)
| 16 | | Section 15. The Public Utilities Act is amended by changing | 17 | | Sections 3-101 and 9-220 and by adding Sections 3-123, 3-124, | 18 | | 3-125, and 3-126 as follows:
| 19 | | (220 ILCS 5/3-101) (from Ch. 111 2/3, par. 3-101)
| 20 | | Sec. 3-101. Definitions. Unless otherwise specified, the | 21 | | terms set forth
in Sections 3-102 through 3-126 3-121 are used | 22 | | in this Act as therein defined.
| 23 | | (Source: P.A. 84-617; 84-1118.)
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| 1 | | (220 ILCS 5/3-123 new) | 2 | | Sec. 3-123. Clean coal facility; clean coal SNG facility; | 3 | | sequester; SNG facility; substitute natural gas or SNG. As used | 4 | | in this Act: | 5 | | "Clean coal facility" shall have the same meaning as | 6 | | provided in Section 1-10 of the Illinois Power Agency Act. | 7 | | "Clean coal SNG facility" shall have the same meaning as | 8 | | provided in Section 1-10 of the Illinois Power Agency Act. | 9 | | "Sequester" shall have the same meaning as provided in | 10 | | Section 1-10 of the Illinois Power Agency Act. | 11 | | "SNG facility" means a facility that produces substitute | 12 | | natural gas from feedstock that includes coal through a | 13 | | gasification process, including a clean coal facility, and the | 14 | | clean coal SNG facility. | 15 | | "Substitute natural gas" or "SNG" shall have the same | 16 | | meaning as provided in Section 1-10 of the Illinois Power | 17 | | Agency Act. | 18 | | (220 ILCS 5/3-124 new) | 19 | | Sec. 3-124. Adjusted final capitalized plant cost. | 20 | | "Adjusted final capitalized plant cost" means the final | 21 | | capitalized plant cost reduced by the following, without | 22 | | duplication and to the extent not already accounted for or | 23 | | reflected on the books of the facility: (1) any State of | 24 | | Illinois financial assistance, (2) any U.S. financial | 25 | | assistance, and (3) any quantifiable benefit from a U.S. Clean |
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| 1 | | Coal Gasification Program received by the facility during a | 2 | | period equal to the shorter of (A) the life of such program or | 3 | | (B) the term of the agreement, such quantifiable benefit to be | 4 | | discounted at a rate of 14% per annum over such period. | 5 | | (220 ILCS 5/3-125 new) | 6 | | Sec. 3-125. Final capitalized plant cost. "Final | 7 | | capitalized plant cost" means the total capitalized asset cost | 8 | | of the plant of the clean coal SNG facility as reflected on the | 9 | | balance sheet of the facility at the time of the commercial | 10 | | production date, with such capitalized cost to be accrued in | 11 | | accordance with generally accepted accounting principles, and | 12 | | includes, without limitation, the following items: major | 13 | | equipment, the SNG pipeline from the plant to the receiving | 14 | | pipeline, water lines, railroad improvements, access road | 15 | | improvements, all coal transportation assets, including the | 16 | | slurry line, slurry prep plant, carbon dioxide capture metering | 17 | | and compression, licensing fees, all costs incurred in the | 18 | | management planning, oversight and execution of the | 19 | | construction and start-up of the plant, and all fees and costs | 20 | | payable under engineering, procurement, and design contracts | 21 | | for the construct of the plant accrued as of the time of the | 22 | | commercial production date, but does not include capitalized | 23 | | financing costs including capitalized interest during | 24 | | construction and all fees associated with financing, coal | 25 | | reserve leasing costs, marketing, training, any and all costs |
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| 1 | | payable under the contract miner agreement, the cost of coal | 2 | | mining equipment and similar costs, and any other costs, | 3 | | including general and administrative costs, not reasonably | 4 | | incurred in connection with the design, construction, testing, | 5 | | start-up, or commissioning of the plant in preparation for | 6 | | commercial production date. | 7 | | (220 ILCS 5/3-126 new) | 8 | | Sec. 3-126. Total capitalized asset cost. "Total | 9 | | capitalized asset cost" means the gross book value of the | 10 | | plant, as determined in accordance with generally accepted | 11 | | accounting principles at the commercial production date. | 12 | | (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220) | 13 | | Sec. 9-220. Rate changes based on changes in fuel costs. | 14 | | (a) Notwithstanding the provisions of Section 9-201, the
| 15 | | Commission may authorize the increase or decrease of rates and | 16 | | charges
based upon changes in the cost of fuel used in the | 17 | | generation or production
of electric power, changes in the cost | 18 | | of purchased power, or changes in
the cost of purchased gas | 19 | | through the application of fuel adjustment
clauses or purchased | 20 | | gas adjustment clauses. The Commission may also
authorize the | 21 | | increase or decrease of rates and charges based upon | 22 | | expenditures
or revenues resulting from the purchase or sale of | 23 | | emission allowances created
under the federal Clean Air Act | 24 | | Amendments of 1990,
through such fuel adjustment clauses, as a |
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| 1 | | cost of fuel. For the purposes of
this paragraph, cost of fuel | 2 | | used in the generation or production of electric
power shall | 3 | | include the amount of any fees paid by the utility for the
| 4 | | implementation and operation of a process for the | 5 | | desulfurization of the
flue gas when burning high sulfur coal | 6 | | at any location within the State of
Illinois irrespective of | 7 | | the attainment status designation of such
location; but shall | 8 | | not include transportation costs
of coal
(i) except to the | 9 | | extent that for contracts entered into on
and after the | 10 | | effective date of this amendatory Act of 1997,
the cost of the | 11 | | coal, including transportation costs,
constitutes the lowest | 12 | | cost for adequate and reliable fuel
supply reasonably available | 13 | | to the public utility in
comparison to the cost, including | 14 | | transportation costs, of
other adequate and reliable sources of | 15 | | fuel supply reasonably
available to the public utility, or (ii)
| 16 | | except as otherwise provided in the next 3 sentences of this | 17 | | paragraph.
Such costs of fuel
shall, when requested by a | 18 | | utility or at the conclusion of the utility's
next general | 19 | | electric rate proceeding, whichever shall first occur, include
| 20 | | transportation costs of coal purchased under existing coal | 21 | | purchase
contracts. For purposes of this paragraph "existing | 22 | | coal purchase
contracts" means contracts for the purchase of | 23 | | coal in effect on the
effective date of this amendatory Act of | 24 | | 1991, as such contracts may
thereafter be amended, but only to | 25 | | the extent that any such amendment does
not increase the | 26 | | aggregate quantity of coal to be purchased under such
contract.
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| 1 | | Nothing herein shall authorize an electric utility
to recover | 2 | | through its fuel adjustment clause any amounts of
| 3 | | transportation costs of coal that were included in the revenue
| 4 | | requirement used to set base rates in its most recent general
| 5 | | rate proceeding.
Cost shall be based upon uniformly applied | 6 | | accounting
principles. Annually, the Commission shall initiate | 7 | | public hearings to
determine whether the clauses reflect actual | 8 | | costs of fuel, gas, power, or
coal transportation purchased to | 9 | | determine whether such purchases were
prudent, and to reconcile | 10 | | any amounts collected with the actual costs of
fuel, power, | 11 | | gas, or coal transportation prudently purchased. In each such
| 12 | | proceeding, the burden of proof shall be upon the utility to | 13 | | establish the
prudence of its cost of fuel, power, gas, or coal
| 14 | | transportation purchases
and costs.
The Commission shall
issue | 15 | | its final order in each such annual proceeding for an
electric | 16 | | utility by December 31 of the year immediately
following the | 17 | | year to which the proceeding pertains, provided,
that the | 18 | | Commission shall issue its final order with respect
to such | 19 | | annual proceeding for the years 1996 and earlier by December | 20 | | 31, 1998. | 21 | | (b) A public utility providing electric service, other than | 22 | | a public utility
described in subsections (e) or (f) of this | 23 | | Section, may at
any time during the mandatory transition period | 24 | | file with the
Commission proposed tariff sheets that eliminate | 25 | | the public
utility's fuel adjustment clause and adjust the | 26 | | public
utility's base rate tariffs by the amount necessary for |
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| 1 | | the
base fuel component of the base rates to recover the public
| 2 | | utility's average fuel and power supply costs per kilowatt-hour | 3 | | for the 2
most recent years for which the Commission
has issued | 4 | | final orders in annual proceedings pursuant to
subsection (a), | 5 | | where the average fuel and power supply costs
per kilowatt-hour | 6 | | shall be calculated as the sum of the public
utility's prudent | 7 | | and allowable fuel and power supply costs as
found by the | 8 | | Commission in the 2 proceedings divided by the
public utility's | 9 | | actual jurisdictional kilowatt-hour sales for
those 2 years. | 10 | | Notwithstanding any contrary or inconsistent
provisions in | 11 | | Section 9-201 of this Act, in subsection (a) of
this Section or | 12 | | in any rules or regulations promulgated by the
Commission | 13 | | pursuant to subsection (g) of this Section, the
Commission | 14 | | shall review and shall by order approve, or approve
as | 15 | | modified, the proposed tariff sheets within 60 days after
the | 16 | | date of the public utility's filing. The Commission may
modify | 17 | | the public utility's proposed tariff sheets only to the
extent | 18 | | the Commission finds necessary to achieve conformance
to the | 19 | | requirements of this subsection (b). During the 5
years | 20 | | following the date of the Commission's order, but in any
event | 21 | | no earlier than January 1, 2007, a public utility whose
fuel | 22 | | adjustment clause has been eliminated pursuant to this
| 23 | | subsection shall not file proposed tariff sheets seeking, or
| 24 | | otherwise petition the Commission for, reinstatement of a fuel
| 25 | | adjustment clause. | 26 | | (c) Notwithstanding any contrary or inconsistent
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| 1 | | provisions in Section 9-201 of this Act, in subsection (a) of
| 2 | | this Section or in any rules or regulations promulgated by the
| 3 | | Commission pursuant to subsection (g) of this Section, a
public | 4 | | utility providing electric service, other than a public utility
| 5 | | described
in subsection (e) or (f) of this Section, may at any | 6 | | time
during the mandatory transition period file with the
| 7 | | Commission proposed tariff sheets that establish the rate per
| 8 | | kilowatt-hour to be applied pursuant to the public utility's
| 9 | | fuel adjustment clause at the average value for such rate
| 10 | | during the preceding 24 months, provided that such average
rate | 11 | | results in a credit to customers' bills, without making
any | 12 | | revisions to the public utility's base rate tariffs. The
| 13 | | proposed tariff sheets shall establish the fuel adjustment
rate | 14 | | for a specific time period of at least 3 years but not
more | 15 | | than 5 years, provided that the terms and conditions for
any | 16 | | reinstatement earlier than 5 years shall be set forth in
the | 17 | | proposed tariff sheets and subject to modification or
approval | 18 | | by the Commission. The Commission shall review and
shall by | 19 | | order approve the proposed tariff sheets if it finds
that the | 20 | | requirements of this subsection are met. The
Commission shall | 21 | | not conduct the annual hearings specified in the
last 3 | 22 | | sentences of subsection (a) of this Section for the
utility for | 23 | | the period that the factor established pursuant to
this | 24 | | subsection is in effect. | 25 | | (d) A public utility providing electric service, or a | 26 | | public utility
providing gas service
may file with the |
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| 1 | | Commission proposed tariff sheets that
eliminate the public | 2 | | utility's fuel or purchased gas
adjustment clause and adjust | 3 | | the public utility's base rate
tariffs to provide for recovery | 4 | | of power supply costs or gas
supply costs that would have been | 5 | | recovered through such
clause; provided, that the provisions of | 6 | | this subsection (d) shall not be
available to a public utility | 7 | | described in subsections (e) or (f) of this
Section to | 8 | | eliminate its fuel adjustment clause. Notwithstanding any | 9 | | contrary
or inconsistent
provisions in Section 9-201 of this | 10 | | Act, in subsection (a) of
this Section, or in any rules or | 11 | | regulations promulgated by
the Commission pursuant to | 12 | | subsection (g) of this Section, the
Commission shall review and | 13 | | shall by order approve, or approve
as modified in the | 14 | | Commission's order, the proposed tariff
sheets within 240 days | 15 | | after the date of the public utility's
filing. The Commission's | 16 | | order shall approve rates and
charges that the Commission, | 17 | | based on information in the
public utility's filing or on the | 18 | | record if a hearing is held
by the Commission, finds will | 19 | | recover the reasonable, prudent
and necessary jurisdictional | 20 | | power supply costs or gas supply
costs incurred or to be | 21 | | incurred by the public utility during
a 12 month period found | 22 | | by the Commission to be appropriate
for these purposes, | 23 | | provided, that such period shall be either
(i) a 12 month | 24 | | historical period occurring during the 15
months ending on the | 25 | | date of the public utility's filing, or
(ii) a 12 month future | 26 | | period ending no later than 15 months
following the date of the |
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| 1 | | public utility's filing. The public
utility shall include with | 2 | | its tariff filing information
showing both (1) its actual | 3 | | jurisdictional power supply costs
or gas supply costs for a 12 | 4 | | month historical period
conforming to (i) above and (2) its | 5 | | projected jurisdictional
power supply costs or gas supply costs | 6 | | for a future 12 month
period conforming to (ii) above. If the | 7 | | Commission's order
requires modifications in the tariff sheets | 8 | | filed by the
public utility, the public utility shall have 7 | 9 | | days following
the date of the order to notify the Commission | 10 | | whether the
public utility will implement the modified tariffs | 11 | | or elect to
continue its fuel or purchased gas adjustment | 12 | | clause in force
as though no order had been entered. The | 13 | | Commission's order
shall provide for any reconciliation of | 14 | | power supply costs or
gas supply costs, as the case may be, and | 15 | | associated revenues
through the date that the public utility's | 16 | | fuel or purchased
gas adjustment clause is eliminated. During | 17 | | the 5 years
following the date of the Commission's order, a | 18 | | public utility
whose fuel or purchased gas adjustment clause | 19 | | has been
eliminated pursuant to this subsection shall not file | 20 | | proposed
tariff sheets seeking, or otherwise petition the | 21 | | Commission
for, reinstatement or adoption of a fuel or | 22 | | purchased gas
adjustment clause. Nothing in this subsection (d) | 23 | | shall be
construed as limiting the Commission's authority to | 24 | | eliminate
a public utility's fuel adjustment clause or | 25 | | purchased gas
adjustment clause in accordance with any other | 26 | | applicable
provisions of this Act. |
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| 1 | | (e) Notwithstanding any contrary or inconsistent | 2 | | provisions in
Section 9-201 of this Act, in subsection (a) of | 3 | | this Section, or in
any rules promulgated by the Commission | 4 | | pursuant
to subsection (g) of this Section, a public utility | 5 | | providing
electric service to more than 1,000,000 customers in | 6 | | this State may, within the
first 6 months after the
effective | 7 | | date of this amendatory Act of 1997, file with the
Commission | 8 | | proposed tariff sheets that eliminate, effective
January 1, | 9 | | 1997, the public utility's fuel adjustment clause
without | 10 | | adjusting its base rates, and such tariff sheets shall be
| 11 | | effective upon filing. To the extent the application of the | 12 | | fuel
adjustment clause had resulted in net charges to customers | 13 | | after
January 1, 1997, the utility shall also file a tariff | 14 | | sheet that
provides for a refund stated on a per kilowatt-hour | 15 | | basis of such
charges over a period not to exceed 6 months; | 16 | | provided
however, that such refund shall not include the | 17 | | proportional
amounts of taxes paid under the Use Tax Act, | 18 | | Service Use Tax Act,
Service Occupation Tax Act, and Retailers' | 19 | | Occupation Tax Act on
fuel used in generation. The Commission | 20 | | shall issue an order
within 45 days after the date of the | 21 | | public utility's filing
approving or approving as modified such | 22 | | tariff sheet. If the fuel
adjustment clause is eliminated | 23 | | pursuant to this subsection, the
Commission shall not conduct | 24 | | the annual hearings specified in the
last 3 sentences of | 25 | | subsection (a) of this Section for the
utility for any period | 26 | | after December 31, 1996 and prior to any
reinstatement of such |
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| 1 | | clause. A public utility whose fuel
adjustment clause has been | 2 | | eliminated pursuant to this subsection
shall not file a | 3 | | proposed tariff sheet seeking, or otherwise
petition the | 4 | | Commission for, reinstatement of the fuel adjustment
clause | 5 | | prior to January 1, 2007. | 6 | | (f) Notwithstanding any contrary or inconsistent | 7 | | provisions in Section
9-201 of this Act, in subsection (a) of | 8 | | this Section, or in any rules or
regulations promulgated by the | 9 | | Commission pursuant to subsection (g) of this
Section, a public | 10 | | utility providing electric service to more than 500,000
| 11 | | customers but fewer than 1,000,000 customers in this State may, | 12 | | within the
first
6 months after the effective date of this | 13 | | amendatory Act of 1997, file with the
Commission proposed | 14 | | tariff sheets that eliminate, effective January 1, 1997,
the | 15 | | public utility's fuel adjustment clause and adjust its base | 16 | | rates by the
amount necessary for the base fuel component of | 17 | | the base rates to recover
91% of the public utility's average | 18 | | fuel and power supply costs for the 2 most
recent years for | 19 | | which the Commission, as of January 1, 1997, has issued final
| 20 | | orders in annual proceedings pursuant to subsection (a), where | 21 | | the average fuel
and power supply costs per kilowatt-hour shall | 22 | | be calculated as the sum of the
public utility's prudent and | 23 | | allowable fuel and power supply costs as found by
the | 24 | | Commission in the 2 proceedings divided by the public utility's | 25 | | actual
jurisdictional kilowatt-hour sales for those 2 years, | 26 | | provided, that such
tariff sheets shall be effective upon |
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| 1 | | filing. To the extent the application of
the fuel adjustment | 2 | | clause had resulted in net charges to customers after
January | 3 | | 1, 1997, the utility shall also file a tariff sheet that | 4 | | provides for a
refund stated on a per kilowatt-hour basis of | 5 | | such charges over a period not to
exceed 6 months. Provided | 6 | | however, that such refund shall not include the
proportional | 7 | | amounts of taxes paid under the Use Tax Act, Service Use Tax | 8 | | Act,
Service Occupation Tax Act, and Retailers' Occupation Tax | 9 | | Act on fuel used in
generation. The Commission shall issue an | 10 | | order within 45 days after the date
of the public utility's | 11 | | filing approving or approving as modified such tariff
sheet. If | 12 | | the fuel adjustment clause is eliminated pursuant to this
| 13 | | subsection, the Commission shall not conduct the annual | 14 | | hearings specified in
the last 3 sentences of subsection (a) of | 15 | | this Section for the utility for any
period after December 31, | 16 | | 1996 and prior to any reinstatement of such clause.
A public | 17 | | utility whose fuel adjustment clause has been eliminated | 18 | | pursuant to
this subsection shall not file a proposed tariff | 19 | | sheet seeking, or otherwise
petition the Commission for, | 20 | | reinstatement of the fuel adjustment clause prior
to January 1, | 21 | | 2007. | 22 | | (g) The Commission shall have authority to promulgate rules | 23 | | and
regulations to
carry out the provisions of this Section. | 24 | | (h) Any Illinois gas utility may enter into a contract on | 25 | | or before September 30 March 31 , 2011 for up to 10 years of | 26 | | supply with any company for the purchase of substitute natural |
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| 1 | | gas (SNG) produced from coal through the gasification process | 2 | | if the company has commenced construction of a clean coal SNG | 3 | | gasification facility by July 1, 2012 in Jefferson County and | 4 | | commencement of construction shall mean that material physical | 5 | | site work has occurred, such as site clearing and excavation, | 6 | | water runoff prevention, water retention reservoir | 7 | | preparation, or foundation development. The contract shall | 8 | | contain the following provisions: (i) at least 90% of feedstock | 9 | | the only coal to be used in the gasification process shall be | 10 | | coal with a has high volatile bituminous rank and greater than | 11 | | 1.7 pounds of sulfur per million Btu content; (ii) at the time | 12 | | the contract term commences, the price per million Btu may not | 13 | | exceed $7.95 in 2008 dollars, adjusted annually based on the | 14 | | change in the Annual Consumer Price Index for All Urban | 15 | | Consumers for the Midwest Region as published in April by the | 16 | | United States Department of Labor, Bureau of Labor Statistics | 17 | | (or a suitable Consumer Price Index calculation if this | 18 | | Consumer Price Index is not available) for the previous | 19 | | calendar year; provided that the price per million Btu shall | 20 | | not exceed $9.95 at any time during the contract; (iii) the | 21 | | utility's aggregate long-term supply contract contracts for | 22 | | the purchase of SNG does not exceed 15% 25% of the annual | 23 | | system supply requirements of the utility as of 2008 and the | 24 | | quantity of SNG supplied to a utility may not exceed 16 million | 25 | | MMBtus ; and (iv) the contract costs pursuant to subsection | 26 | | (h-10) of this Section shall not include any lobbying expenses, |
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| 1 | | charitable contributions, advertising, organizational | 2 | | memberships, carbon dioxide pipeline or sequestration | 3 | | expenses, or marketing expenses per year . | 4 | | Any gas utility that is providing service to more than | 5 | | 150,000 customers on the effective date of this amendatory Act | 6 | | of the 97th General Assembly shall either elect to enter into a | 7 | | contract on or before September 30, 2011 for 10 years of SNG | 8 | | supply with the owner of a clean coal SNG facility or to file | 9 | | biennial rate proceedings before the Commission in the years | 10 | | 2012, 2014, and 2016, with such filings made after the | 11 | | effective date of this amendatory Act of the 97th General | 12 | | Assembly and no later than September 30 of the years 2012, | 13 | | 2014, and 2016 consistent with all requirements of 83 Ill. Adm. | 14 | | Code 255 and 285 as though the gas utility were filing for an | 15 | | increase in its rates, without regard to whether such filing | 16 | | would produce an increase, a decrease, or no change in the gas | 17 | | utility's rates, and the Commission shall review the gas | 18 | | utility's filing and shall issue its order in accordance with | 19 | | the provisions of Section 9-201 of this Act. | 20 | | Within 7 days after the effective date of this amendatory | 21 | | Act of the 97th General Assembly, the owner of the clean coal | 22 | | SNG facility shall submit to the Illinois Power Agency and each | 23 | | gas utility that is providing service to more than 150,000 | 24 | | customers on the effective date of this amendatory Act of the | 25 | | 97th General Assembly a copy of a draft contract. Within 30 | 26 | | days after the receipt of the draft contract, each such gas |
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| 1 | | utility shall provide the Illinois Power Agency and the owner | 2 | | of the clean coal SNG facility with its comments and | 3 | | recommended revisions to the draft contract. Within 7 days | 4 | | after the receipt of the gas utility's comments and recommended | 5 | | revisions, the owner of the facility shall submit its | 6 | | responsive comments and a further revised draft of the contract | 7 | | to the Illinois Power Agency. The Illinois Power Agency shall | 8 | | review the draft contract and comments. | 9 | | During its review of the draft contract, the Illinois Power | 10 | | Agency shall: | 11 | | (1) review and confirm in writing that the terms stated | 12 | | in this subsection (h) are incorporated in the SNG | 13 | | contract; | 14 | | (2) review the SNG pricing formula included in the | 15 | | contract and approve that formula if the Illinois Power | 16 | | Agency determines that the formula, at the time the | 17 | | contract term commences: (A) starts with a price of $6.50 | 18 | | per MMBtu adjusted by the adjusted final capitalized plant | 19 | | cost; (B) takes into account budgeted miscellaneous net | 20 | | revenue after cost allowance, including sale of SNG | 21 | | produced by the clean coal SNG facility above the nameplate | 22 | | capacity of the facility and other by-products produced by | 23 | | the facility, as approved by the Illinois Power Agency; (C) | 24 | | does not include carbon dioxide transportation or | 25 | | sequestration expenses; and (D) includes all provisions | 26 | | required under this subsection (h); if the Illinois Power |
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| 1 | | Agency does not approve of the SNG pricing formula, then | 2 | | the Illinois Power Agency shall modify the formula to | 3 | | ensure that it meets the requirements of this subsection | 4 | | (h); | 5 | | (3) review and approve the amount of budgeted | 6 | | miscellaneous net revenue after cost allowance, including | 7 | | sale of SNG produced by the clean coal SNG facility above | 8 | | the nameplate capacity of the facility and other | 9 | | by-products produced by the facility, to be included in the | 10 | | pricing formula; the Illinois Power Agency shall approve | 11 | | the amount of budgeted miscellaneous net revenue to be | 12 | | included in the pricing formula if it determines the | 13 | | budgeted amount to be reasonable and accurate; | 14 | | (4) review and confirm in writing that using the EIA | 15 | | Annual Energy Outlook-2011 Henry Hub Spot Price, the | 16 | | contract terms set out in subsection (h), the | 17 | | reconciliation account terms as set out in subsection | 18 | | (h-15), and an estimated inflation rate of 2.5% for each | 19 | | corresponding year, that there will be no cumulative | 20 | | estimated increase for residential customers; and | 21 | | (5) allocate the nameplate capacity of the clean coal | 22 | | SNG by total therms sold to ultimate customers by each gas | 23 | | utility in 2008; provided, however, no utility shall be | 24 | | required to purchase more than 42% of the projected annual | 25 | | output of the facility; additionally, the Illinois Power | 26 | | Agency shall further adjust the allocation only as required |
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| 1 | | to take into account (A) adverse consolidation, | 2 | | derivative, or lease impacts to the balance sheet or income | 3 | | statement of any gas utility or (B) the physical capacity | 4 | | of the gas utility to accept SNG. | 5 | | If the parties to the contract do not agree on the terms | 6 | | therein, then the Illinois Power Agency shall retain an | 7 | | independent mediator to mediate the dispute between the | 8 | | parties. If the parties are in agreement on the terms of the | 9 | | contract, then the Illinois Power Agency shall approve the | 10 | | contract. If after mediation the parties have failed to come to | 11 | | agreement, then the Illinois Power Agency shall revise the | 12 | | draft contract as necessary to confirm that the contract | 13 | | contains only terms that are reasonable and equitable. The | 14 | | Illinois Power Agency may, in its discretion, retain an | 15 | | independent, qualified, and experienced expert to assist in its | 16 | | obligations under this subsection (h). The Illinois Power | 17 | | Agency shall adopt and make public policies detailing the | 18 | | processes for retaining a mediator and an expert under this | 19 | | subsection (h). Any mediator or expert retained under this | 20 | | subsection (h) shall be retained no later than 60 days after | 21 | | the effective date of this amendatory Act of the 97th General | 22 | | Assembly. | 23 | | The Illinois Power Agency shall complete all of its | 24 | | responsibilities under this subsection (h) within 60 days after | 25 | | the effective date of this amendatory Act of the 97th General | 26 | | Assembly. The clean coal SNG facility shall pay a reasonable |
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| 1 | | fee as required by the Illinois Power Agency for its services | 2 | | under this subsection (h) and shall pay the mediator's and | 3 | | expert's reasonable fees, if any. A gas utility and its | 4 | | customers shall have no obligation to reimburse the clean coal | 5 | | SNG facility or the Illinois Power Agency of any such costs. | 6 | | Within 30 days after commercial production of SNG has | 7 | | begun, the Commission shall initiate a review to determine | 8 | | whether the final capitalized plant cost of the clean coal SNG | 9 | | facility reflects actual incurred costs and whether the | 10 | | incurred costs were reasonable. In determining the actual | 11 | | incurred costs included in the final capitalized plant cost and | 12 | | the reasonableness of those costs, the Commission may in its | 13 | | discretion retain independent, qualified, and experienced | 14 | | experts to assist in its determination. The expert shall not | 15 | | own or control any direct or indirect interest in the clean | 16 | | coal SNG facility and shall have no contractual relationship | 17 | | with the clean coal SNG facility. If an expert is retained by | 18 | | the Commission, then the clean coal SNG facility shall pay the | 19 | | expert's reasonable fees. The fees shall not be passed on to a | 20 | | utility or its customers. The Commission shall adopt and make | 21 | | public a policy detailing the process for retaining experts | 22 | | under this subsection (h). | 23 | | Within 30 days after completion of its review, the | 24 | | Commission shall initiate a formal proceeding on the final | 25 | | capitalized plant cost of the clean coal SNG facility at which | 26 | | comments and testimony may be submitted by any interested |
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| 1 | | parties and the public. If the Commission finds that the final | 2 | | capitalized plant cost includes costs that were not actually | 3 | | incurred or costs that were unreasonably incurred, then the | 4 | | Commission shall disallow the amount of non-incurred or | 5 | | unreasonable costs from the SNG price under contracts entered | 6 | | into under this subsection (h). If the Commission disallows any | 7 | | costs, then the Commission shall adjust the SNG price using the | 8 | | price formula in the contract approved by the Illinois Power | 9 | | Agency under this subsection (h) to reflect the disallowed | 10 | | costs and shall enter an order specifying the revised price. In | 11 | | addition, the Commission's order shall direct the clean coal | 12 | | SNG facility to issue refunds of such sums as shall represent | 13 | | the difference between actual gross revenues and the gross | 14 | | revenue that would have been obtained based upon the same | 15 | | volume, from the price revised by the Commission. Any refund | 16 | | shall include interest calculated at a rate determined by the | 17 | | Commission and shall be returned according to procedures | 18 | | prescribed by the Commission. | 19 | | Nothing in this subsection (h) shall preclude any party | 20 | | affected by a decision of the Commission under this subsection | 21 | | (h) from seeking judicial review of the Commission's decision. | 22 | | (h-5) All contracts entered into under subsection (h) of | 23 | | this Section, regardless of duration, shall require the owner | 24 | | of any facility supplying SNG under the contract to provide | 25 | | certified documentation to the Commission each year, starting | 26 | | in the facility's first year of commercial operation, |
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| 1 | | accurately reporting the quantity of carbon dioxide emissions | 2 | | from the facility that have been captured and sequestered and | 3 | | reporting any quantities of carbon dioxide released from the | 4 | | site or sites at which carbon dioxide emissions were | 5 | | sequestered in prior years, based on continuous monitoring of | 6 | | those sites. | 7 | | If, in any year, the owner of the clean coal SNG facility | 8 | | fails to demonstrate that the SNG facility captured and | 9 | | sequestered at least 90% of the total carbon dioxide emissions | 10 | | that the facility would otherwise emit or that sequestration of | 11 | | emissions from prior years has failed, resulting in the release | 12 | | of carbon dioxide into the atmosphere, then the owner of the | 13 | | clean coal SNG facility must pay a penalty of $20 per ton of | 14 | | excess carbon dioxide emissions not to exceed $40,000,000, in | 15 | | any given year which shall be deposited into the Energy | 16 | | Efficiency Trust Fund and distributed pursuant to subsection | 17 | | (b) of Section 6-6 of the Renewable Energy, Energy Efficiency, | 18 | | and Coal Resources Development Law of 1997. On or before the | 19 | | 5-year anniversary of the execution of the contract and every 5 | 20 | | years thereafter, an expert hired by the owner of the facility | 21 | | with the approval of the Attorney General shall conduct an | 22 | | analysis to determine the cost of sequestration of at least 90% | 23 | | of the total carbon dioxide emissions the plant would otherwise | 24 | | emit. If the analysis shows that the actual annual cost is | 25 | | greater than the penalty, then the penalty shall be increased | 26 | | to equal the actual cost. Provided, however, to the extent that |
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| 1 | | the owner of the facility described in subsection (h) of this | 2 | | Act can demonstrate that the failure was as a result of acts of | 3 | | God (including fire, flood, earthquake, tornado, lightning, | 4 | | hurricane, or other natural disaster); any amendment, | 5 | | modification, or abrogation of any applicable law or regulation | 6 | | that would prevent performance; war; invasion; act of foreign | 7 | | enemies; hostilities (regardless of whether war is declared); | 8 | | civil war; rebellion; revolution; insurrection; military or | 9 | | usurped power or confiscation; terrorist activities; civil | 10 | | disturbance; riots; nationalization; sabotage; blockage; or | 11 | | embargo, the owner of the facility described in subsection (h) | 12 | | of this Act shall not be subject to a penalty if and only if (i) | 13 | | it promptly provides notice of its failure to the Commission; | 14 | | (ii) as soon as practicable and consistent with any order or | 15 | | direction from the Commission, it submits to the Commission | 16 | | proposed modifications to its carbon capture and sequestration | 17 | | plan; and (iii) it carries out its proposed modifications in | 18 | | the manner and time directed by the Commission. | 19 | | If the Commission finds that the facility has not satisfied | 20 | | each of these requirements, then the facility shall be subject | 21 | | to the penalty. If the owner of the clean coal SNG facility | 22 | | captured and sequestered more than 90% of the total carbon | 23 | | dioxide emissions that the facility would otherwise emit, then | 24 | | the owner of the facility may credit such additional amounts to | 25 | | reduce the amount of any future penalty to be paid. The penalty | 26 | | resulting from the failure to capture and sequester at least |
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| 1 | | the minimum amount of carbon dioxide shall not be passed on to | 2 | | a utility or its customers. | 3 | | If the clean coal SNG facility fails to meet the | 4 | | requirements specified in this subsection (h-5), then the | 5 | | Attorney General, on behalf of the People of the State of | 6 | | Illinois, shall bring an action to enforce the obligations | 7 | | related to the facility set forth in this subsection (h-5), | 8 | | including any penalty payments owed, but not including the | 9 | | physical obligation to capture and sequester at least 90% of | 10 | | the total carbon dioxide emissions that the facility would | 11 | | otherwise emit. Such action may be filed in any circuit court | 12 | | in Illinois. By entering into a contract pursuant to subsection | 13 | | (h) of this Section, the clean coal SNG facility agrees to | 14 | | waive any objections to venue or to the jurisdiction of the | 15 | | court with regard to the Attorney General's action under this | 16 | | subsection (h-5). | 17 | | Compliance with the sequestration requirements and any | 18 | | penalty requirements specified in this subsection (h-5) for the | 19 | | clean coal SNG facility shall be assessed annually by the | 20 | | Commission, which may in its discretion retain an expert to | 21 | | facilitate its assessment. If any expert is retained by the | 22 | | Commission, then the clean coal SNG facility shall pay for the | 23 | | expert's reasonable fees, and such costs shall not be passed | 24 | | through to the utility or its customers. | 25 | | In addition, carbon dioxide emission credits received by | 26 | | the clean coal SNG facility in connection with sequestration of |
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| 1 | | carbon dioxide from the facility must be sold in a timely | 2 | | fashion with any revenue, less applicable fees and expenses and | 3 | | any expenses required to be paid by facility for carbon dioxide | 4 | | transportation or sequestration, deposited into the | 5 | | reconciliation account within 30 days after receipt of such | 6 | | funds by the owner of the clean coal SNG facility. | 7 | | The clean coal SNG facility is prohibited from transporting | 8 | | or sequestering carbon dioxide unless the owner of the carbon | 9 | | dioxide pipeline that transfers the carbon dioxide from the | 10 | | facility and the owner of the sequestration site where the | 11 | | carbon dioxide captured by the facility is stored has acquired | 12 | | all applicable permits under applicable State and federal laws, | 13 | | statutes, rules, or regulations prior to the transfer or | 14 | | sequestration of carbon dioxide. The responsibility for | 15 | | compliance with the sequestration requirements specified in | 16 | | this subsection (h-5) for the clean coal SNG facility shall | 17 | | reside solely with the clean coal SNG facility, regardless of | 18 | | whether the facility has contracted with another party to | 19 | | capture, transport, or sequester carbon dioxide. | 20 | | (h-7) Sequestration permitting, oversight, and | 21 | | investigations. No clean coal facility may transport or | 22 | | sequester carbon dioxide unless the Commission approves the | 23 | | method of carbon dioxide transportation or sequestration. Such | 24 | | approval shall be required regardless of whether the facility | 25 | | has contracted with another to transport or sequester the | 26 | | carbon dioxide. Nothing in this subsection (h-7) shall release |
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| 1 | | the owner or operator of a carbon dioxide sequestration site or | 2 | | carbon dioxide pipeline from any other permitting requirements | 3 | | under applicable State and federal laws, statutes, rules, or | 4 | | regulations. | 5 | | The Commission shall review carbon dioxide transportation | 6 | | and sequestration methods proposed by a clean coal facility and | 7 | | shall approve those methods it deems reasonable and | 8 | | cost-effective. For purposes of this review, "cost-effective" | 9 | | means a commercially reasonable price for similar carbon | 10 | | dioxide transportation or sequestration techniques. In | 11 | | determining whether sequestration is reasonable and | 12 | | cost-effective, the Commission may consult with the Illinois | 13 | | State Geological Survey and retain third parties to assist in | 14 | | its determination, provided that such third parties shall not | 15 | | own or control any direct or indirect interest in the facility | 16 | | that is proposing the carbon dioxide transportation or the | 17 | | carbon dioxide sequestration method and shall have no | 18 | | contractual relationship with that facility. If a third party | 19 | | is retained by the Commission, then the facility proposing the | 20 | | carbon dioxide transportation or sequestration method shall | 21 | | pay for the expert's reasonable fees, and these costs shall not | 22 | | be passed through to a utility or its customers. | 23 | | No later than 6 months prior to the date upon which the | 24 | | owner intends to commence construction of a clean coal | 25 | | facility, the owner of the facility shall file with the | 26 | | Commission a carbon dioxide transportation or sequestration |
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| 1 | | plan. The Commission shall hold a public hearing within 30 days | 2 | | after receipt of the facility's carbon dioxide transportation | 3 | | or sequestration plan. The Commission shall post notice of the | 4 | | review on its website upon submission of a carbon dioxide | 5 | | transportation or sequestration method and shall accept | 6 | | written public comments. The Commission shall take the comments | 7 | | into account when making its decision. | 8 | | The Commission may not approve a carbon dioxide | 9 | | sequestration method if the owner or operator of the | 10 | | sequestration site has not received (i) an Underground | 11 | | Injection Control permit from the Illinois Environmental | 12 | | Protection Agency pursuant to the Environmental Protection | 13 | | Act; (ii) an Underground Injection Control permit from the | 14 | | Illinois Department of Natural Resources pursuant to the | 15 | | Illinois Oil and Gas Act; or (iii) a permit similar to items | 16 | | (i) or (ii) from the state in which the sequestration site is | 17 | | located if the sequestration will take place outside of | 18 | | Illinois. The Commission shall approve or deny the carbon | 19 | | dioxide transportation or sequestration method within 90 days | 20 | | after the receipt of all required information. | 21 | | At least annually, the Illinois Environmental Protection | 22 | | Agency shall inspect all carbon dioxide sequestration sites in | 23 | | Illinois. The Illinois Environmental Protection Agency may, as | 24 | | often as deemed necessary, monitor and conduct investigations | 25 | | of those sites. The owner or operator of the sequestration site | 26 | | must cooperate with the Illinois Environmental Protection |
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| 1 | | Agency investigations of carbon dioxide sequestration sites. | 2 | | If the Illinois Environmental Protection Agency determines | 3 | | at any time a site creates conditions that warrant the issuance | 4 | | of a seal order under Section 34 of the Environmental | 5 | | Protection Act, then the Illinois Environmental Protection | 6 | | Agency shall seal the site pursuant to the Environmental | 7 | | Protection Act. If the Illinois Environmental Protection | 8 | | Agency determines at any time a carbon dioxide sequestration | 9 | | site creates conditions that warrant the institution of a civil | 10 | | action for an injunction under Section 43 of the Environmental | 11 | | Protection Act, then the Illinois Environmental Protection | 12 | | Agency shall request the State's Attorney or the Attorney | 13 | | General institute such action. The Illinois Environmental | 14 | | Protection Agency shall provide notice of any such actions as | 15 | | soon as possible on its website. The facility shall incur all | 16 | | reasonable costs associated with any such inspection or | 17 | | monitoring of the sequestration sites, and these costs shall | 18 | | not be recoverable from utilities or their customers. | 19 | | At least annually, the Commission shall inspect all carbon | 20 | | dioxide pipelines in Illinois that transport carbon dioxide to | 21 | | ensure the safety and feasibility of those pipelines. The | 22 | | Commission may, as often as deemed necessary, monitor and | 23 | | conduct investigations of those pipelines. The owner or | 24 | | operator of the pipeline must cooperate with the Commission | 25 | | investigations of the carbon dioxide pipelines. | 26 | | In circumstances whereby a carbon dioxide pipeline creates |
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| 1 | | a substantial danger to the environment or to the public health | 2 | | of persons or to the welfare of persons where such danger is to | 3 | | the livelihood of such persons, the State's Attorney or | 4 | | Attorney General, upon the request of the Commission or on his | 5 | | or her own motion, may institute a civil action for an | 6 | | immediate injunction to halt any discharge or other activity | 7 | | causing or contributing to the danger or to require such other | 8 | | action as may be necessary. The court may issue an ex parte | 9 | | order and shall schedule a hearing on the matter not later than | 10 | | 3 working days after the date of injunction. The Commission | 11 | | shall provide notice of any such actions as soon as possible on | 12 | | its website. The SNG facility shall incur all reasonable costs | 13 | | associated with any such inspection or monitoring of the | 14 | | sequestration sites, and these costs shall not be recoverable | 15 | | from a utility or its customers. | 16 | | (h-5) The Attorney General, on behalf of the people of the | 17 | | State of Illinois, may specifically enforce the requirements of | 18 | | this subsection (h-5). All contracts, regardless of duration, | 19 | | shall require the owner of any facility supplying SNG under the | 20 | | contract to provide documentation to the Commission each year, | 21 | | starting in the facility's first year of commercial operation, | 22 | | accurately reporting the quantity of carbon dioxide emissions | 23 | | from the facility that have been captured and sequestered and | 24 | | reporting any quantities of carbon dioxide released from the | 25 | | site or sites at which carbon dioxide emissions were | 26 | | sequestered in prior years, based on continuous monitoring of |
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| 1 | | those sites. If, in any year, the owner of the facility fails | 2 | | to demonstrate that the SNG facility captured and sequestered | 3 | | at least 90% of the total carbon dioxide emissions that the | 4 | | facility would otherwise emit or that sequestration of | 5 | | emissions from prior years has failed, resulting in the release | 6 | | of carbon dioxide into the atmosphere, then the owner of the | 7 | | facility must offset excess emissions. Any such carbon dioxide | 8 | | offsets must be permanent, additional, verifiable, real, | 9 | | located within the State of Illinois, and legally and | 10 | | practicably enforceable; provided that the owner of the | 11 | | facility shall not be obligated to acquire carbon dioxide | 12 | | emission offsets to the extent that the cost of acquiring such | 13 | | offsets would exceed $40 million in any given year. No costs of | 14 | | any purchases of carbon offsets may be recovered from a utility | 15 | | or its customers. All carbon offsets purchased for this purpose | 16 | | must be permanently retired. In addition, carbon dioxide | 17 | | emission credits equivalent to 50% of the amount of credits | 18 | | associated with the required sequestration of carbon dioxide | 19 | | from the facility must be permanently retired. Compliance with | 20 | | the sequestration requirements and the offset purchase | 21 | | requirements specified in this subsection (h-5) shall be | 22 | | assessed annually by an independent expert retained by the | 23 | | owner of the SNG facility, with the advance written approval of | 24 | | the Attorney General. A SNG facility operating pursuant to this | 25 | | subsection (h-5) shall not forfeit its designation as a clean | 26 | | coal SNG facility if the facility fails to fully comply with |
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| 1 | | the applicable carbon sequestration requirements in any given | 2 | | year, provided the requisite offsets are purchased. | 3 | | (h-10) Contract costs for SNG incurred by an Illinois gas | 4 | | utility are reasonable and prudent and recoverable through the | 5 | | purchased gas adjustment clause and are not subject to review | 6 | | or disallowance by the Commission. Contract costs are costs | 7 | | incurred by the utility under the terms of a contract that | 8 | | incorporates the terms stated in subsection (h) of this Section | 9 | | as confirmed in writing by the Illinois Power Agency as set | 10 | | forth in subsection (h) (h-20) of this Section, which | 11 | | confirmation shall be deemed conclusive, or as a consequence of | 12 | | or condition to its performance under the contract, including | 13 | | (i) amounts paid for SNG under the SNG contract and (ii) costs | 14 | | of transportation and storage services of SNG purchased from | 15 | | interstate pipelines under federally approved tariffs. The | 16 | | Illinois gas utility shall initiate a clean coal SNG facility | 17 | | rider mechanism that (A) shall be applicable to all customers | 18 | | who receive transportation service from the utility, (B) shall | 19 | | be designed to have an equal percentage impact on the | 20 | | transportation services rates of each class of the utility's | 21 | | total customers, and (C) shall accurately reflect the net | 22 | | customer savings, if any, and above market costs, if any, under | 23 | | the SNG contract. Any contract, the terms of which have been | 24 | | confirmed in writing by the Illinois Power Agency as set forth | 25 | | in subsection (h) (h-20) of this Section and the performance of | 26 | | the parties under such contract cannot be grounds for |
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| 1 | | challenging prudence or cost recovery by the utility through | 2 | | the purchased gas adjustment clause, and in such cases, the | 3 | | Commission is directed not to consider, and has no authority to | 4 | | consider, any attempted challenges. | 5 | | The contracts entered into by Illinois gas utilities | 6 | | pursuant to subsection (h) of this Section shall provide that | 7 | | the utility retains the right to terminate the contract without | 8 | | further obligation or liability to any party if the contract | 9 | | has been impaired as a result of any legislative, | 10 | | administrative, judicial, or other governmental action that is | 11 | | taken that eliminates all or part of the prudence protection of | 12 | | this subsection (h-10) or denies the recoverability of all or | 13 | | part of the contract costs through the purchased gas adjustment | 14 | | clause. Should any Illinois gas utility exercise its right | 15 | | under this subsection (h-10) to terminate the contract, all | 16 | | contract costs incurred prior to termination are and will be | 17 | | deemed reasonable, prudent, and recoverable as and when | 18 | | incurred and not subject to review or disallowance by the | 19 | | Commission. Any order, issued by the State requiring or | 20 | | authorizing the discontinuation of the merchant function, | 21 | | defined as the purchase and sale of natural gas by an Illinois | 22 | | gas utility for the ultimate consumer in its service territory | 23 | | shall include provisions necessary to prevent the impairment of | 24 | | the value of any contract hereunder over its full term. | 25 | | (h-15) Reconciliation account. The clean coal SNG facility | 26 | | shall establish a reconciliation account for the benefit of the |
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| 1 | | retail customers of the utilities that have entered into | 2 | | contracts with the clean coal SNG facility pursuant to | 3 | | subsection (h). The reconciliation account shall be maintained | 4 | | and administered by an independent trustee that is mutually | 5 | | agreed upon by the owners of the clean coal SNG facility, the | 6 | | utilities, and the Commission in an interest-bearing account in | 7 | | accordance with the following: | 8 | | (1) The clean coal SNG facility shall conduct an | 9 | | analysis annually within 60 days after receiving the | 10 | | necessary cost information, which shall be provided by the | 11 | | gas utility within 6 months after the end of the preceding | 12 | | calendar year, to determine (i) the average annual contract | 13 | | SNG cost, which shall be calculated as the total amount | 14 | | paid for SNG purchased from the clean coal SNG facility | 15 | | over the preceding 12 months, plus the cost to the utility | 16 | | of the required transportation and storage services of SNG, | 17 | | divided by the total number of MMBtus of SNG actually | 18 | | purchased from the clean coal SNG facility in the preceding | 19 | | 12 months under the utility contract; (ii) the average | 20 | | annual natural gas purchase cost, which shall be calculated | 21 | | as the total annual supply costs paid for baseload natural | 22 | | gas (excluding any SNG) purchased by such utility over the | 23 | | preceding 12 months plus the costs of transportation and | 24 | | storage services of such natural gas (excluding such costs | 25 | | for SNG), divided by the total number of MMbtus of baseload | 26 | | natural gas (excluding SNG) actually purchased by the |
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| 1 | | utility during the year; (iii) the cost differential, which | 2 | | shall be the difference between the average annual contract | 3 | | SNG cost and the average annual natural gas purchase cost; | 4 | | and (iv) the revenue share target which shall be the cost | 5 | | differential multiplied by the total amount of SNG | 6 | | purchased over the preceding 12 months under such utility | 7 | | contract. | 8 | | (A) To the extent the annual average contract SNG | 9 | | cost is less than the annual average natural gas | 10 | | purchase cost, the utility shall credit an amount equal | 11 | | to the revenue share target to the reconciliation | 12 | | account. Such credit payment shall be made monthly | 13 | | starting within 30 days after the completed analysis in | 14 | | this subsection (h-15) and based on collections from | 15 | | all customers via a line item charge in all customer | 16 | | bills designed to have an equal percentage impact on | 17 | | the transportation services of each class of | 18 | | customers. Credit payments made pursuant to this | 19 | | subparagraph (A) shall be deemed prudent and | 20 | | reasonable and not subject to Commission prudence | 21 | | review. | 22 | | (B) To the extent the annual average contract SNG | 23 | | cost is greater than the annual average natural gas | 24 | | purchase cost, the reconciliation account shall be | 25 | | used to provide a credit equal to the revenue share | 26 | | target to the utilities to be used to reduce the |
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| 1 | | utility's natural gas costs through the purchased gas | 2 | | adjustment clause. Such payment shall be made within 30 | 3 | | days after the completed analysis pursuant to this | 4 | | subsection (h-15), but only to the extent that the | 5 | | reconciliation account has a positive balance. | 6 | | (2) At the conclusion of the term of the SNG contracts | 7 | | pursuant to subsection (h) and the completion of the final | 8 | | annual analysis pursuant to this subsection (h-15), to the | 9 | | extent the facility owes any amount to retail customers, | 10 | | amounts in the account shall be credited to retail | 11 | | customers to the extent the owed amount is repaid; 50% of | 12 | | any additional amount in the reconciliation account shall | 13 | | be distributed to the utilities to be used to reduce the | 14 | | utilities' natural gas costs through the purchase gas | 15 | | adjustment clause with the remaining amount distributed to | 16 | | the clean coal SNG facility. Such payment shall be made | 17 | | within 30 days after the last completed analysis pursuant | 18 | | to this subsection (h-15). If the facility has repaid all | 19 | | owed amounts, if any, to retail customers and has | 20 | | distributed 50% of any additional amount in the account to | 21 | | the utilities, then the owners of the clean coal SNG | 22 | | facility shall have no further obligation to the utility or | 23 | | the retail customers. | 24 | | If, at the conclusion of the term of the contracts | 25 | | pursuant to subsection (h) and the completion of the final | 26 | | annual analysis pursuant to this subsection (h-15), the |
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| 1 | | facility owes any amount to retail customers and the | 2 | | account has been depleted, then the clean coal SNG facility | 3 | | shall be liable for any remaining amount owed to the retail | 4 | | customers. The clean coal SNG facility shall market the | 5 | | daily production of SNG and distribute on a monthly basis | 6 | | 5% of the amounts collected with respect to such future | 7 | | sales to the utilities in proportion to each utility's SNG | 8 | | contract to be used to reduce the utility's natural gas | 9 | | costs through the purchase gas adjustment clause; such | 10 | | payments to the utility shall continue until either 15 | 11 | | years after the conclusion of the contract or such time as | 12 | | the sum of such payments equals the remaining amount owed | 13 | | to the retail customers at the end of the contract, | 14 | | whichever is earlier. If the debt to the retail customers | 15 | | is not repaid within 15 years after the conclusion of the | 16 | | contract, then the owner of the clean coal SNG facility | 17 | | must sell the facility, and all proceeds from that sale | 18 | | must be used to repay any amount owed to the retail | 19 | | customers under this subsection (h-15). | 20 | | The retail customers shall have first priority in | 21 | | recovering that debt above any creditors, except the | 22 | | secured lenders to the extent that the secured lenders have | 23 | | any secured debt outstanding, including any parent | 24 | | companies or affiliates of the clean coal SNG facility. | 25 | | (3) 50% of all additional net revenue, defined as | 26 | | miscellaneous net revenue after cost allowance and above |
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| 1 | | the budgeted estimate established for revenue pursuant to | 2 | | subsection (h), including sale of substitute natural gas | 3 | | derived from the clean coal SNG facility above the | 4 | | nameplate capacity of the facility and other by-products | 5 | | produced by the facility, shall be credited to the | 6 | | reconciliation account on an annual basis with such payment | 7 | | made within 30 days after the end of each calendar year | 8 | | during the term of the contract. | 9 | | (4) The clean coal SNG facility shall each year, | 10 | | starting in the facility's first year of commercial | 11 | | operation, file with the Commission, in such form as the | 12 | | Commission shall require, a report as to the reconciliation | 13 | | account. The annual report must contain the following | 14 | | information: | 15 | | (A) the revenue share target amount; | 16 | | (B) the amount credited or debited to the | 17 | | reconciliation account during the year; | 18 | | (C) the amount credited to the utilities to be used | 19 | | to reduce the utilities natural gas costs though the | 20 | | purchase gas adjustment clause; | 21 | | (D) the total amount of reconciliation account at | 22 | | the beginning and end of the year; | 23 | | (E) the total amount of consumer savings to date; | 24 | | and | 25 | | (F) any additional information the Commission may | 26 | | require. |
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| 1 | | When any report is erroneous or defective or appears to the | 2 | | Commission to be erroneous or defective, the Commission may | 3 | | notify the clean coal SNG facility to amend the report within | 4 | | 30 days; before or after the termination of the 30-day period, | 5 | | the Commission may examine the trustee of the reconciliation | 6 | | account or the officers, agents, employees, books, records, or | 7 | | accounts of the clean coal SNG facility and correct such items | 8 | | in the report as upon such examination the Commission may find | 9 | | defective or erroneous. All reports shall be under oath. | 10 | | All reports made to the Commission by the clean coal SNG | 11 | | facility and the contents of the reports shall be open to | 12 | | public inspection and shall be deemed a public record under the | 13 | | Freedom of Information Act. Such reports shall be preserved in | 14 | | the office of the Commission. The Commission shall publish an | 15 | | annual summary of the reports prior to February 1 of the | 16 | | following year. The annual summary shall be made available to | 17 | | the public on the Commission's website and shall be submitted | 18 | | to the General Assembly. | 19 | | Any facility that fails to file the report required under | 20 | | this paragraph (4) to the Commission within the time specified | 21 | | or to make specific answer to any question propounded by the | 22 | | Commission within 30 days after the time it is lawfully | 23 | | required to do so, or within such further time not to exceed 90 | 24 | | days as may be allowed by the Commission in its discretion, | 25 | | shall pay a penalty of $500 to the Commission for each day it | 26 | | is in default. |
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| 1 | | Any person who willfully makes any false report to the | 2 | | Commission or to any member, officer, or employee thereof, any | 3 | | person who willfully in a report withholds or fails to provide | 4 | | material information to which the Commission is entitled under | 5 | | this paragraph (4) and which information is either required to | 6 | | be filed by statute, rule, regulation, order, or decision of | 7 | | the Commission or has been requested by the Commission, and any | 8 | | person who willfully aids or abets such person shall be guilty | 9 | | of a Class A misdemeanor. | 10 | | With respect to each contract entered into by the company | 11 | | with an Illinois utility in accordance with the terms stated in | 12 | | subsection (h) of this Section, within 60 days following the | 13 | | completion of purchases of SNG, the Illinois Power Agency shall | 14 | | conduct an analysis to determine (i) the average contract SNG | 15 | | cost, which shall be calculated as the total amount paid to a | 16 | | company for SNG over the contract term, plus the cost to the | 17 | | utility of the required transportation and storage services of | 18 | | SNG, divided by the total number of MMBtus of SNG actually | 19 | | purchased under the utility contract; (ii) the average natural | 20 | | gas purchase cost, which shall be calculated as the total | 21 | | annual supply costs paid for natural gas (excluding SNG) | 22 | | purchased by such utility over the contract term, plus the | 23 | | costs of transportation and storage services of such natural | 24 | | gas (excluding such costs for SNG), divided by the total number | 25 | | of MMBtus of natural gas (excluding SNG) actually purchased by | 26 | | the utility during the contract term; (iii) the cost |
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| 1 | | differential, which shall be the difference between the average | 2 | | contract SNG cost and the average natural gas purchase cost; | 3 | | and (iv) the revenue share target, which shall be the cost | 4 | | differential multiplied by the total amount of SNG purchased | 5 | | under such utility contract. If the average contract SNG cost | 6 | | is equal to or less than the average natural gas purchase cost, | 7 | | then the company shall have no further obligation to the | 8 | | utility. If the average contract SNG cost for such SNG contract | 9 | | is greater than the average natural gas purchase cost for such | 10 | | utility, then the company shall market the daily production of | 11 | | SNG and distribute on a monthly basis 5% of amounts collected | 12 | | with respect to such future sales to the utilities in | 13 | | proportion to each utility's SNG purchases from the company | 14 | | during the term of the SNG contract to be used to reduce the | 15 | | utility's natural gas costs through the purchased gas | 16 | | adjustment clause; such payments to the utility shall continue | 17 | | until such time as the sum of such payments equals the revenue | 18 | | share target of that utility. The company or utilities shall | 19 | | have no obligation to repay the revenue share target except as | 20 | | provided for in this subsection (h-15). | 21 | | (h-20) The General Assembly authorizes the Illinois | 22 | | Finance Authority to issue bonds to the maximum extent | 23 | | permitted to finance coal gasification facilities described in | 24 | | this Section, which constitute both "industrial projects" | 25 | | under Article 801 of the Illinois Finance Authority Act and | 26 | | "clean coal and energy projects" under Sections 825-65 through |
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| 1 | | 825-75 of the Illinois Finance Authority Act. The General | 2 | | Assembly further authorizes the Illinois Power Agency to become | 3 | | party to agreements and take such actions as necessary to | 4 | | enable the Illinois Power Agency or its designate to (i) review | 5 | | and confirm in writing that the terms stated in subsection (h) | 6 | | of this Section are incorporated in the SNG contract, and (ii) | 7 | | conduct an analysis pursuant to subsection (h-15) of this | 8 | | Section. | 9 | | Administrative costs incurred by the Illinois Finance | 10 | | Authority and Illinois Power Agency in performance of this | 11 | | subsection (h-20) shall be subject to reimbursement by the | 12 | | clean coal SNG facility company on terms as the Illinois | 13 | | Finance Authority , the Illinois Power Agency, and the clean | 14 | | coal SNG facility company may agree. The utility and its | 15 | | customers shall have no obligation to reimburse the clean coal | 16 | | SNG facility or company, the Illinois Finance Authority , or the | 17 | | Illinois Power Agency for any such costs. | 18 | | (h-25) The State of Illinois pledges that the State may not | 19 | | enact any law or take any action to (1) break or repeal the | 20 | | authority for SNG purchase contracts entered into between | 21 | | public gas utilities and the clean coal SNG facility pursuant | 22 | | to subsection (h) of this Section or (2) deny public gas | 23 | | utilities their full cost recovery for contract costs, as | 24 | | defined in subsection (h-10), that are incurred under such SNG | 25 | | purchase contracts. These pledges are for the benefit of the | 26 | | parties to such SNG purchase contracts and the issuers and |
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| 1 | | holders of bonds or other obligations issued or incurred to | 2 | | finance or refinance the clean coal SNG facility. The | 3 | | beneficiaries are authorized to include and refer to these | 4 | | pledges in any finance agreement into which they may enter in | 5 | | regard to such contracts. | 6 | | (h-30) The State of Illinois retains and reserves all other | 7 | | rights to enact new or amendatory legislation or take any other | 8 | | action, including, but not limited to, such legislation or | 9 | | other action that would (1) directly or indirectly raise the | 10 | | costs that the clean coal SNG facility must incur; (2) directly | 11 | | or indirectly place additional restrictions, regulations, or | 12 | | requirements on the clean coal SNG facility; (3) prohibit | 13 | | sequestration in general or prohibit a specific sequestration | 14 | | method or project; or (4) increase minimum sequestration | 15 | | requirements. | 16 | | (i) If a gas utility or an affiliate of a gas utility has | 17 | | an ownership interest in any entity that produces or sells | 18 | | synthetic natural gas, Article VII of this Act shall apply.
| 19 | | (Source: P.A. 95-1027, eff. 6-1-09; 96-1364, eff. 7-28-10.) | 20 | | Section 20. The Illinois Gas Pipeline Safety Act is amended | 21 | | by changing Sections 2.02, 2.03, 2.04, and 3 as follows:
| 22 | | (220 ILCS 20/2.02) (from Ch. 111 2/3, par. 552.2)
| 23 | | Sec. 2.02.
| 24 | | "Gas" means natural gas, flammable gas or gas which is |
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| 1 | | toxic or
corrosive. "Gas" also means carbon dioxide in any | 2 | | physical form, whenever transported by pipeline for the purpose | 3 | | of sequestration.
| 4 | | (Source: P.A. 76-1588.)
| 5 | | (220 ILCS 20/2.03) (from Ch. 111 2/3, par. 552.3)
| 6 | | Sec. 2.03.
"Transportation of gas" means the gathering, | 7 | | transmission, or
distribution of gas by pipeline or its | 8 | | storage, within this State and not
subject to the jurisdiction | 9 | | of the Federal Energy Regulatory
Commission under the
Natural | 10 | | Gas Act, except that it includes the transmission of gas | 11 | | through
pipeline facilities within this State that transport | 12 | | gas from an interstate
gas pipeline to a direct sales customer | 13 | | within this State purchasing gas
for its own consumption. | 14 | | "Transportation of gas" also includes
the conveyance of gas | 15 | | from a gas main through the primary fuel line to the
outside | 16 | | wall of residential
premises. If the gas meter is placed within | 17 | | 3 feet of the structure, the
utility's responsibility shall end | 18 | | at the outlet side of the meter. "Transportation of gas" also | 19 | | includes the conveyance of carbon dioxide in any physical form | 20 | | for the purpose of sequestration.
| 21 | | (Source: P.A. 87-1092; 88-314.)
| 22 | | (220 ILCS 20/2.04) (from Ch. 111 2/3, par. 552.4)
| 23 | | Sec. 2.04.
"Pipeline facilities" includes new and existing | 24 | | pipe rights-of-way and
any equipment, facility, or building |
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| 1 | | used in the transportation of gas
or the
treatment of gas | 2 | | during the course of transportation and
includes facilities | 3 | | within this State that transport gas from an interstate
gas | 4 | | pipeline to a direct sales customer within this State | 5 | | purchasing gas
for its own consumption, but
"rights-of-way" as | 6 | | used in this Act does not authorize the Commission to
| 7 | | prescribe, under this Act, the location or
routing of any | 8 | | pipeline facility. "Pipeline facilities" also includes
new and | 9 | | existing pipes and lines and any other equipment, facility, or
| 10 | | structure, except customer-owned branch lines connected to the | 11 | | primary fuel
lines, used to convey gas from a gas main to the | 12 | | outside wall of
residential premises, and any person who | 13 | | provides gas service directly to its
residential customer | 14 | | through these facilities shall be deemed to operate
such | 15 | | pipeline facilities for purposes of this Act irrespective of | 16 | | the ownership
of the facilities or the location of the | 17 | | facilities with respect to the
meter, except that a person who | 18 | | provides gas service to a "master meter
system", as that term | 19 | | is defined at 49 C.F.R. Section 191.3, shall not be
deemed to | 20 | | operate any facilities downstream of the master meter. | 21 | | "Pipeline facilities" also includes new and existing pipe | 22 | | rights-of-way and any equipment, facility, or building used in | 23 | | the transportation of carbon dioxide in any physical form for | 24 | | the purpose of sequestration.
| 25 | | (Source: P.A. 87-1092; 88-314.)
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| 1 | | (220 ILCS 20/3) (from Ch. 111 2/3, par. 553)
| 2 | | Sec. 3.
(a) As soon as practicable, but not later than 3 | 3 | | months after the
effective date of this Act, the Commission | 4 | | shall adopt rules establishing
minimum safety standards for the | 5 | | transportation of gas and for pipeline
facilities. Such rules | 6 | | shall be at least as inclusive, as stringent, and
compatible | 7 | | with, the minimum safety standards adopted by the Secretary of
| 8 | | Transportation under the Federal Act. Thereafter, the | 9 | | Commission shall
maintain such rules so that the rules are at | 10 | | least as inclusive, as
stringent, and compatible with, the | 11 | | minimum standards from time to time in
effect under the Federal | 12 | | Act. The Commission shall also adopt rules establishing minimum | 13 | | safety standards for the transportation of carbon dioxide in | 14 | | any physical form for the purpose of sequestration and for | 15 | | pipeline facilities used for that function.
| 16 | | (b) Standards established under this Act may apply to the | 17 | | design,
installation, inspection, testing, construction, | 18 | | extension, operation,
replacement, and maintenance of pipeline | 19 | | facilities. Standards affecting
the design, installation, | 20 | | construction, initial inspection and initial
testing are not | 21 | | applicable to pipeline facilities in existence on the date
such | 22 | | standards are adopted. Whenever the Commission finds a | 23 | | particular
facility to be hazardous to life or property, it may | 24 | | require the person
operating such facility to take the steps | 25 | | necessary to remove the hazard.
| 26 | | (c) Standards established by the Commission under this Act |
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| 1 | | shall,
subject to paragraphs (a) and (b) of this Section 3, be | 2 | | practicable and
designed to meet the need for pipeline safety. | 3 | | In prescribing such
standards, the Commission shall consider: | 4 | | similar standards established in
other states; relevant | 5 | | available pipeline safety data; whether such
standards are | 6 | | appropriate for the particular type of pipeline
| 7 | | transportation; the reasonableness of any proposed standards; | 8 | | and the
extent to which such standards will contribute to | 9 | | public safety.
| 10 | | Rules adopted under this Act are subject to "The Illinois | 11 | | Administrative
Procedure Act", approved September 22, 1975, as | 12 | | amended.
| 13 | | (Source: P.A. 83-333.)
| 14 | | Section 25. The Environmental Protection Act is amended by | 15 | | adding Section 13.7 as follows: | 16 | | (415 ILCS 5/13.7 new) | 17 | | Sec. 13.7. Carbon dioxide sequestration sites. | 18 | | (a) For purposes of this Section, the term "carbon dioxide | 19 | | sequestration site" means a site or facility for which the | 20 | | Agency has issued a permit for the underground injection of | 21 | | carbon dioxide. | 22 | | (b) The Agency shall inspect carbon dioxide sequestration | 23 | | sites for compliance with this Act, rules adopted under this | 24 | | Act, and permits issued by the Agency. |
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| 1 | | (c) If the Agency issues a seal order under Section 34 of | 2 | | this Act in relation to a carbon dioxide sequestration site, or | 3 | | if a civil action for an injunction to halt activity at a | 4 | | carbon dioxide sequestration site is initiated under Section 43 | 5 | | of this Act at the request of the Agency, then the Agency shall | 6 | | post notice of such action on its website. | 7 | | (d) Persons seeking a permit or permit modification for the | 8 | | underground injection of carbon dioxide shall be liable to the | 9 | | Agency for all reasonable and documented costs incurred by the | 10 | | Agency that are associated with review and issuance of the | 11 | | permit, including, but not limited to, costs associated with | 12 | | public hearings and the review of permit applications. Once a | 13 | | permit is issued, the permittee shall be liable to the Agency | 14 | | for all reasonable and documented costs incurred by the Agency | 15 | | that are associated with inspections and other oversight of the | 16 | | carbon dioxide sequestration site. Persons liable for costs | 17 | | under this subsection (d) must pay the costs upon invoicing, or | 18 | | other request or demand for payment, by the Agency. Costs for | 19 | | which a person is liable under this subsection (d) are in | 20 | | addition to any other fees, penalties, or other relief provided | 21 | | under this Act or any other law. | 22 | | Moneys collected under this subsection (d) shall be | 23 | | deposited into the Environmental Protection Permit and | 24 | | Inspection Fund established under Section 22.8 of this Act. The | 25 | | Agency may adopt rules relating to the collection of costs due | 26 | | under this subsection (d). |
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| 1 | | (e) The Agency shall not issue a permit or permit | 2 | | modification for the underground injection of carbon dioxide | 3 | | unless all costs for which the permittee is liable under | 4 | | subsection (d) of this Section have been paid. | 5 | | (f) No person shall fail or refuse to pay costs for which | 6 | | the person is liable under subsection (d) of this Section. | 7 | | Section 97. Inseverability. The provisions of this Act are | 8 | | mutually dependent and inseverable. If any provision is held | 9 | | invalid, then this entire Act, including all new and amendatory | 10 | | provisions, is invalid.
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law. |
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