Full Text of SB2365 98th General Assembly
SB2365 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB2365 Introduced 2/15/2013, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: |
| 20 ILCS 3501/825-65 | | 20 ILCS 3855/1-10 | |
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Amends the Illinois Power Agency Act. Includes references to the reduction of thermal load in the definitions of "energy efficiency" and "renewable energy resources". Makes corresponding changes to the definition of "Energy Efficiency Project" in the Illinois Finance Authority Act. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Finance Authority Act is amended by | 5 | | changing Section 825-65 as follows: | 6 | | (20 ILCS 3501/825-65) | 7 | | Sec. 825-65. Clean Coal, Coal, Energy Efficiency, and | 8 | | Renewable Energy Project Financing. | 9 | | (a) Findings and declaration of policy. | 10 | | (i) It is hereby found and declared that
Illinois has | 11 | | abundant coal resources and, in some areas of Illinois, the | 12 | | demand
for power exceeds the generating capacity. | 13 | | Incentives to encourage the
construction of coal-fueled | 14 | | electric generating plants in Illinois to ensure
power | 15 | | generating capacity into the future and to advance clean | 16 | | coal technology and the use of Illinois coal are in the | 17 | | best interests of all of
the citizens of Illinois. | 18 | | (ii) It is further found and declared that Illinois has | 19 | | abundant potential and resources to develop renewable | 20 | | energy resource projects and that there are many | 21 | | opportunities to invest in cost-effective energy | 22 | | efficiency projects throughout the State. The development | 23 | | of those projects will create jobs and investment as well |
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| 1 | | as decrease environmental impacts and promote energy | 2 | | independence in Illinois. Accordingly, the development of | 3 | | those projects is in the best interests of all of the | 4 | | citizens of Illinois. | 5 | | (iii) The Authority is authorized to issue bonds to | 6 | | help
finance Clean Coal, Coal, Energy Efficiency, and | 7 | | Renewable Energy projects pursuant to this
Section. | 8 | | (b) Definitions. | 9 | | (i) "Clean Coal Project" means (A) "clean coal | 10 | | facility", as defined in Section 1-10 of the Illinois Power | 11 | | Agency Act; (B) "clean coal SNG facility", as defined in | 12 | | Section 1-10 of the Illinois Power Agency Act; (C) | 13 | | transmission lines and associated equipment that transfer | 14 | | electricity from points of supply to points of delivery for | 15 | | projects described in this subsection (b); (D) pipelines or | 16 | | other methods to transfer carbon dioxide from the point of | 17 | | production to the point of storage or sequestration for | 18 | | projects described in this subsection (b); or (E) projects | 19 | | to provide carbon abatement technology for existing | 20 | | generating facilities. | 21 | | (ii) "Coal Project" means new electric
generating | 22 | | facilities or new gasification facilities, as defined in
| 23 | | Section 605-332 of the Department of Commerce and
Economic | 24 | | Opportunity Law of the Civil Administrative Code of | 25 | | Illinois, which
may
include mine-mouth power plants, | 26 | | projects that employ the use of clean coal
technology, |
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| 1 | | projects to provide scrubber technology for existing | 2 | | energy
generating plants, or projects to provide electric | 3 | | transmission facilities or new gasification facilities. | 4 | | (iii) "Energy Efficiency Project" means measures that | 5 | | reduce the amount of electricity , or natural gas , or | 6 | | thermal load required to achieve a given end use, | 7 | | consistent with Section 1-10 of the Illinois Power Agency | 8 | | Act. | 9 | | (iv) "Renewable Energy Project" means (A) a project | 10 | | that uses renewable energy resources, as defined in Section | 11 | | 1-10 of the Illinois Power Agency Act; (B) a project that | 12 | | uses environmentally preferable technologies and practices | 13 | | that result in improvements to the production of renewable | 14 | | fuels, including but not limited to, cellulosic | 15 | | conversion, water and energy conservation, fractionation, | 16 | | alternative feedstocks, or reduced green house gas | 17 | | emissions; (C) transmission lines and associated equipment | 18 | | that transfer electricity from points of supply to points | 19 | | of delivery for projects described in this subsection (b); | 20 | | or (D) projects that use technology for the storage of | 21 | | renewable energy, including, without limitation, the use | 22 | | of battery or electrochemical storage technology for | 23 | | mobile or stationary applications. | 24 | | (c) Creation of reserve funds. The Authority may establish | 25 | | and maintain one
or more reserve funds to enhance bonds issued | 26 | | by the Authority for a Clean Coal Project, a Coal Project, an |
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| 1 | | Energy Efficiency Project, or a Renewable
Energy Project.
There | 2 | | may be one or more accounts in these reserve funds in which | 3 | | there may be
deposited: | 4 | | (1) any proceeds of the bonds issued by the Authority | 5 | | required to
be deposited therein by the terms of any | 6 | | contract between the Authority and its
bondholders or any | 7 | | resolution of the Authority; | 8 | | (2) any other moneys or funds of the Authority that it | 9 | | may
determine to deposit therein from any other source; and | 10 | | (3) any other moneys or funds made available to the | 11 | | Authority.
Subject to the terms of any pledge to the owners | 12 | | of any bonds, moneys in any
reserve fund may be held and | 13 | | applied to the payment of principal, premium, if
any, and | 14 | | interest of such bonds. | 15 | | (d) Powers and duties. The Authority has the power: | 16 | | (1) To issue bonds in one or more series pursuant to | 17 | | one or more
resolutions of the Authority for any Clean Coal | 18 | | Project, Coal Project, Energy Efficiency Project, or | 19 | | Renewable Energy Project authorized
under this Section, | 20 | | within the authorization set forth in subsection (e). | 21 | | (2) To provide for the funding of any reserves or other | 22 | | funds or
accounts deemed necessary by the Authority in | 23 | | connection with any bonds issued
by the Authority. | 24 | | (3) To pledge any funds of the Authority or funds made | 25 | | available to
the Authority that may be applied to such | 26 | | purpose as security for any bonds or
any guarantees, |
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| 1 | | letters of credit, insurance contracts or similar credit
| 2 | | support
or liquidity instruments securing the bonds. | 3 | | (4) To enter into agreements or contracts with third | 4 | | parties,
whether public or private, including, without | 5 | | limitation, the United States of
America, the State or any | 6 | | department or agency thereof, to obtain any
| 7 | | appropriations, grants, loans or guarantees that are | 8 | | deemed necessary or
desirable by the Authority. Any such | 9 | | guarantee, agreement or contract may
contain terms and | 10 | | provisions necessary or desirable in connection with the
| 11 | | program, subject to the requirements established by the | 12 | | Act. | 13 | | (5) To exercise such other powers as are necessary or | 14 | | incidental to
the foregoing. | 15 | | (e) Clean Coal Project, Coal Project, Energy Efficiency | 16 | | Project, and Renewable Energy Project bond authorization and | 17 | | financing limits. In
addition
to any other bonds authorized to | 18 | | be issued under
Sections 801-40(w), 825-60, 830-25
and 845-5, | 19 | | the Authority may have outstanding, at any time, bonds for the
| 20 | | purpose
enumerated in this
Section 825-65 in an aggregate | 21 | | principal amount that shall not
exceed $3,000,000,000, subject | 22 | | to the following limitations: (i) up to $300,000,000 may be | 23 | | issued to
finance projects, as described in clause (C) of | 24 | | subsection (b)(i) and clause (C) of subsection (b)(iv) of this | 25 | | Section 825-65; (ii) up to $500,000,000 may be issued to
| 26 | | finance projects, as described in clauses (D) and (E) of |
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| 1 | | subsection (b)(i) of this Section 825-65; (iii) up to | 2 | | $2,000,000,000 may
be issued to finance Clean Coal Projects, as | 3 | | described in clauses (A) and (B) of subsection (b)(i) of this | 4 | | Section 825-65 and Coal Projects, as described in subsection | 5 | | (b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000 | 6 | | may be issued to finance Energy Efficiency Projects, as | 7 | | described in subsection (b)(iii) of this Section 825-65 and | 8 | | Renewable Energy Projects, as described in clauses (A), (B), | 9 | | and (D) of subsection (b)(iii) of this Section 825-65. An | 10 | | application for a loan
financed from bond proceeds from a | 11 | | borrower or its affiliates for a Clean Coal Project, a Coal | 12 | | Project, Energy Efficiency Project, or a Renewable
Energy | 13 | | Project may not be approved by the Authority for an amount in | 14 | | excess
of $450,000,000 for any borrower or its affiliates. | 15 | | These bonds shall not
constitute an indebtedness or obligation | 16 | | of the State of Illinois and it shall
be plainly stated on the | 17 | | face of each bond that it does not constitute an
indebtedness | 18 | | or obligation of the State of Illinois, but is payable solely | 19 | | from
the revenues, income or other assets of the Authority | 20 | | pledged therefor. | 21 | | (f) The bonding authority granted under this Section is in | 22 | | addition to and not limited by the provisions of Section 845-5. | 23 | | (Source: P.A. 95-470, eff. 8-27-07; 96-103, eff. 1-1-10; | 24 | | 96-817, eff. 1-1-10.) | 25 | | Section 10. The Illinois Power Agency Act is amended by |
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| 1 | | changing Section 1-10 as follows:
| 2 | | (20 ILCS 3855/1-10)
| 3 | | Sec. 1-10. Definitions. | 4 | | "Agency" means the Illinois Power Agency. | 5 | | "Agency loan agreement" means any agreement pursuant to | 6 | | which the Illinois Finance Authority agrees to loan the | 7 | | proceeds of revenue bonds issued with respect to a project to | 8 | | the Agency upon terms providing for loan repayment installments | 9 | | at least sufficient to pay when due all principal of, interest | 10 | | and premium, if any, on those revenue bonds, and providing for | 11 | | maintenance, insurance, and other matters in respect of the | 12 | | project. | 13 | | "Authority" means the Illinois Finance Authority. | 14 | | "Clean coal facility" means an electric generating | 15 | | facility that uses primarily coal as a feedstock and that | 16 | | captures and sequesters carbon dioxide emissions at the | 17 | | following levels: at least 50% of the total carbon dioxide | 18 | | emissions that the facility would otherwise emit if, at the | 19 | | time construction commences, the facility is scheduled to | 20 | | commence operation before 2016, at least 70% of the total | 21 | | carbon dioxide emissions that the facility would otherwise emit | 22 | | if, at the time construction commences, the facility is | 23 | | scheduled to commence operation during 2016 or 2017, and at | 24 | | least 90% of the total carbon dioxide emissions that the | 25 | | facility would otherwise emit if, at the time construction |
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| 1 | | commences, the facility is scheduled to commence operation | 2 | | after 2017. The power block of the clean coal facility shall | 3 | | not exceed allowable emission rates for sulfur dioxide, | 4 | | nitrogen oxides, carbon monoxide, particulates and mercury for | 5 | | a natural gas-fired combined-cycle facility the same size as | 6 | | and in the same location as the clean coal facility at the time | 7 | | the clean coal facility obtains an approved air permit. All | 8 | | coal used by a clean coal facility shall have high volatile | 9 | | bituminous rank and greater than 1.7 pounds of sulfur per | 10 | | million btu content, unless the clean coal facility does not | 11 | | use gasification technology and was operating as a conventional | 12 | | coal-fired electric generating facility on June 1, 2009 (the | 13 | | effective date of Public Act 95-1027). | 14 | | "Clean coal SNG brownfield facility" means a facility that | 15 | | (1) has commenced construction by July 1, 2015 on an urban | 16 | | brownfield site in a municipality with at least 1,000,000 | 17 | | residents; (2) uses a gasification process to produce | 18 | | substitute natural gas; (3) uses coal as at least 50% of the | 19 | | total feedstock over the term of any sourcing agreement with a | 20 | | utility and the remainder of the feedstock may be either | 21 | | petroleum coke or coal, with all such coal having a high | 22 | | bituminous rank and greater than 1.7 pounds of sulfur per | 23 | | million Btu content unless the facility reasonably determines
| 24 | | that it is necessary to use additional petroleum coke to
| 25 | | deliver additional consumer savings, in which case the
facility | 26 | | shall use coal for at least 35% of the total
feedstock over the |
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| 1 | | term of any sourcing agreement; and (4) captures and sequesters | 2 | | at least 85% of the total carbon dioxide emissions that the | 3 | | facility would otherwise emit. | 4 | | "Clean coal SNG facility" means a facility that uses a | 5 | | gasification process to produce substitute natural gas, that | 6 | | sequesters at least 90% of the total carbon dioxide emissions | 7 | | that the facility would otherwise emit, that uses at least 90% | 8 | | coal as a feedstock, with all such coal having a high | 9 | | bituminous rank and greater than 1.7 pounds of sulfur per | 10 | | million btu content, and that has a valid and effective permit | 11 | | to construct emission sources and air pollution control | 12 | | equipment and approval with respect to the federal regulations | 13 | | for Prevention of Significant Deterioration of Air Quality | 14 | | (PSD) for the plant pursuant to the federal Clean Air Act; | 15 | | provided, however, a clean coal SNG brownfield facility shall | 16 | | not be a clean coal SNG facility. | 17 | | "Commission" means the Illinois Commerce Commission. | 18 | | "Costs incurred in connection with the development and | 19 | | construction of a facility" means: | 20 | | (1) the cost of acquisition of all real property, | 21 | | fixtures, and improvements in connection therewith and | 22 | | equipment, personal property, and other property, rights, | 23 | | and easements acquired that are deemed necessary for the | 24 | | operation and maintenance of the facility; | 25 | | (2) financing costs with respect to bonds, notes, and | 26 | | other evidences of indebtedness of the Agency; |
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| 1 | | (3) all origination, commitment, utilization, | 2 | | facility, placement, underwriting, syndication, credit | 3 | | enhancement, and rating agency fees; | 4 | | (4) engineering, design, procurement, consulting, | 5 | | legal, accounting, title insurance, survey, appraisal, | 6 | | escrow, trustee, collateral agency, interest rate hedging, | 7 | | interest rate swap, capitalized interest, contingency, as | 8 | | required by lenders, and other financing costs, and other | 9 | | expenses for professional services; and | 10 | | (5) the costs of plans, specifications, site study and | 11 | | investigation, installation, surveys, other Agency costs | 12 | | and estimates of costs, and other expenses necessary or | 13 | | incidental to determining the feasibility of any project, | 14 | | together with such other expenses as may be necessary or | 15 | | incidental to the financing, insuring, acquisition, and | 16 | | construction of a specific project and starting up, | 17 | | commissioning, and placing that project in operation. | 18 | | "Department" means the Department of Commerce and Economic | 19 | | Opportunity. | 20 | | "Director" means the Director of the Illinois Power Agency. | 21 | | "Demand-response" means measures that decrease peak | 22 | | electricity demand or shift demand from peak to off-peak | 23 | | periods. | 24 | | "Distributed renewable energy generation device" means a | 25 | | device that is: | 26 | | (1) powered by wind, solar thermal energy, |
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| 1 | | photovoltaic cells and panels, biodiesel, crops and | 2 | | untreated and unadulterated organic waste biomass, tree | 3 | | waste, and hydropower that does not involve new | 4 | | construction or significant expansion of hydropower dams; | 5 | | (2) interconnected at the distribution system level of | 6 | | either an electric utility as defined in this Section, an | 7 | | alternative retail electric supplier as defined in Section | 8 | | 16-102 of the Public Utilities Act, a municipal utility as | 9 | | defined in Section 3-105 of the Public Utilities Act, or a | 10 | | rural electric cooperative as defined in Section 3-119 of | 11 | | the Public Utilities Act; | 12 | | (3) located on the customer side of the customer's | 13 | | electric meter and is primarily used to offset that | 14 | | customer's electricity load; and | 15 | | (4) limited in nameplate capacity to no more than 2,000 | 16 | | kilowatts. | 17 | | "Energy efficiency" means measures that reduce the amount | 18 | | of electricity , or natural gas , or thermal load required to | 19 | | achieve a given end use. | 20 | | "Electric utility" has the same definition as found in | 21 | | Section 16-102 of the Public Utilities Act. | 22 | | "Facility" means an electric generating unit or a | 23 | | co-generating unit that produces electricity along with | 24 | | related equipment necessary to connect the facility to an | 25 | | electric transmission or distribution system. | 26 | | "Governmental aggregator" means one or more units of local |
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| 1 | | government that individually or collectively procure | 2 | | electricity to serve residential retail electrical loads | 3 | | located within its or their jurisdiction. | 4 | | "Local government" means a unit of local government as | 5 | | defined in Section 1 of Article VII of the Illinois | 6 | | Constitution. | 7 | | "Municipality" means a city, village, or incorporated | 8 | | town. | 9 | | "Person" means any natural person, firm, partnership, | 10 | | corporation, either domestic or foreign, company, association, | 11 | | limited liability company, joint stock company, or association | 12 | | and includes any trustee, receiver, assignee, or personal | 13 | | representative thereof. | 14 | | "Project" means the planning, bidding, and construction of | 15 | | a facility. | 16 | | "Public utility" has the same definition as found in | 17 | | Section 3-105 of the Public Utilities Act. | 18 | | "Real property" means any interest in land together with | 19 | | all structures, fixtures, and improvements thereon, including | 20 | | lands under water and riparian rights, any easements, | 21 | | covenants, licenses, leases, rights-of-way, uses, and other | 22 | | interests, together with any liens, judgments, mortgages, or | 23 | | other claims or security interests related to real property. | 24 | | "Renewable energy credit" means a tradable credit that | 25 | | represents the environmental attributes of a certain amount of | 26 | | energy produced from a renewable energy resource. |
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| 1 | | "Renewable energy resources" includes energy and its | 2 | | associated renewable energy credit or renewable energy credits | 3 | | from wind, solar thermal energy, photovoltaic cells and panels, | 4 | | biodiesel, anaerobic digestion, crops and untreated and | 5 | | unadulterated organic waste biomass, tree waste, hydropower | 6 | | that does not involve new construction or significant expansion | 7 | | of hydropower dams, and other alternative sources of | 8 | | environmentally preferable energy , including the thermal load | 9 | | avoided by geothermal heat pumps . For purposes of this Act, | 10 | | landfill gas produced in the State is considered a renewable | 11 | | energy resource. "Renewable energy resources" does not include | 12 | | the incineration or burning of tires, garbage, general | 13 | | household, institutional, and commercial waste, industrial | 14 | | lunchroom or office waste, landscape waste other than tree | 15 | | waste, railroad crossties, utility poles, or construction or | 16 | | demolition debris, other than untreated and unadulterated | 17 | | waste wood. | 18 | | "Revenue bond" means any bond, note, or other evidence of | 19 | | indebtedness issued by the Authority, the principal and | 20 | | interest of which is payable solely from revenues or income | 21 | | derived from any project or activity of the Agency. | 22 | | "Sequester" means permanent storage of carbon dioxide by | 23 | | injecting it into a saline aquifer, a depleted gas reservoir, | 24 | | or an oil reservoir, directly or through an enhanced oil | 25 | | recovery process that may involve intermediate storage, | 26 | | regardless of whether these activities are conducted by a clean |
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| 1 | | coal facility, a clean coal SNG facility, a clean coal SNG | 2 | | brownfield facility, or a party with which a clean coal | 3 | | facility, clean coal SNG facility, or clean coal SNG brownfield | 4 | | facility has contracted for such purposes. | 5 | | "Sourcing agreement" means (i) in the case of an electric | 6 | | utility, an agreement between the owner of a clean coal | 7 | | facility and such electric utility, which agreement shall have | 8 | | terms and conditions meeting the requirements of paragraph (3) | 9 | | of subsection (d) of Section 1-75, (ii) in the case of an | 10 | | alternative retail electric supplier, an agreement between the | 11 | | owner of a clean coal facility and such alternative retail | 12 | | electric supplier, which agreement shall have terms and | 13 | | conditions meeting the requirements of Section 16-115(d)(5) of | 14 | | the Public Utilities Act, and (iii) in case of a gas utility, | 15 | | an agreement between the owner of a clean coal SNG brownfield | 16 | | facility and the gas utility, which agreement shall have the | 17 | | terms and conditions meeting the requirements of subsection | 18 | | (h-1) of Section 9-220 of the Public Utilities Act. | 19 | | "Substitute natural gas" or "SNG" means a gas manufactured | 20 | | by gasification of hydrocarbon feedstock, which is | 21 | | substantially interchangeable in use and distribution with | 22 | | conventional natural gas. | 23 | | "Total resource cost test" or "TRC test" means a standard | 24 | | that is met if, for an investment in energy efficiency or | 25 | | demand-response measures, the benefit-cost ratio is greater | 26 | | than one. The benefit-cost ratio is the ratio of the net |
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| 1 | | present value of the total benefits of the program to the net | 2 | | present value of the total costs as calculated over the | 3 | | lifetime of the measures. A total resource cost test compares | 4 | | the sum of avoided electric utility costs, representing the | 5 | | benefits that accrue to the system and the participant in the | 6 | | delivery of those efficiency measures, as well as other | 7 | | quantifiable societal benefits, including avoided natural gas | 8 | | utility costs, to the sum of all incremental costs of end-use | 9 | | measures that are implemented due to the program (including | 10 | | both utility and participant contributions), plus costs to | 11 | | administer, deliver, and evaluate each demand-side program, to | 12 | | quantify the net savings obtained by substituting the | 13 | | demand-side program for supply resources. In calculating | 14 | | avoided costs of power and energy that an electric utility | 15 | | would otherwise have had to acquire, reasonable estimates shall | 16 | | be included of financial costs likely to be imposed by future | 17 | | regulations and legislation on emissions of greenhouse gases.
| 18 | | (Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; | 19 | | 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10; 97-96, eff. | 20 | | 7-13-11; 97-239, eff. 8-2-11; 97-491, eff. 8-22-11; 97-616, | 21 | | eff. 10-26-11; 97-813, eff. 7-13-12.)
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.
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