Full Text of HB3042 100th General Assembly
HB3042ham001 100TH GENERAL ASSEMBLY | Rep. Jay Hoffman Filed: 4/21/2017
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| 1 | | AMENDMENT TO HOUSE BILL 3042
| 2 | | AMENDMENT NO. ______. Amend House Bill 3042 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "ARTICLE 1. SHORT TITLE. | 5 | | Section 1. Short title. This Act may be cited as the Energy | 6 | | and Environmental Security Act. | 7 | | ARTICLE 5. AMENDATORY PROVISIONS | 8 | | Section 5. The Energy Conservation and Coal Development Act | 9 | | is amended by changing Section 1 and by adding Sections 17 and | 10 | | 20 as follows:
| 11 | | (20 ILCS 1105/1) (from Ch. 96 1/2, par. 7401)
| 12 | | Sec. 1. Definitions; transfer of duties.
| 13 | | (a) For the purposes of this Act, unless the context |
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| 1 | | otherwise requires:
| 2 | | "Department" means the Department of Commerce and | 3 | | Economic Opportunity.
| 4 | | "Director" means the Director of Commerce and Economic | 5 | | Opportunity.
| 6 | | "Qualified Clean Coal Facility" means an electric | 7 | | generating facility which uses United States high volatile | 8 | | rank bituminous coal with an emissions factor of less than | 9 | | 210 pounds of carbon dioxide per million BTU as its primary | 10 | | fuel source. | 11 | | (b) As provided in Section 80-20 of the Department of | 12 | | Natural Resources
Act, the Department of Commerce and Community | 13 | | Affairs (now Department of Commerce and Economic Opportunity)
| 14 | | shall assume the rights,
powers, and duties of the former | 15 | | Department of Energy and Natural Resources
under this Act, | 16 | | except as those rights, powers, and duties are otherwise
| 17 | | allocated or transferred by law.
| 18 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 19 | | (20 ILCS 1105/17 new) | 20 | | Sec. 17. Illinois Qualified Clean Coal Technology Grant | 21 | | Program. | 22 | | (a) Subject to appropriation, the Department shall provide | 23 | | grants for the purpose of funding or financing capital | 24 | | projects, operating activities, contractual expenses and fees, | 25 | | and other expenses that will allow the grant recipient to (i) |
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| 1 | | meet the qualifications of a qualified clean coal facility, as | 2 | | defined in this Act, (ii) operate the electric generating unit | 3 | | as a qualified clean coal facility while complying with State | 4 | | and federal emissions requirements applicable to the grant | 5 | | recipient's entire electric generating fleet, and (iii) | 6 | | mitigate the environmental impacts of the operation of | 7 | | coal-fueled electric generation units in this State. For | 8 | | purposes of this Section, "contractual expenses and fees" shall | 9 | | include, without limitation, (i) contractual termination fees | 10 | | paid by the owner of a coal-fueled electric generation facility | 11 | | to terminate one or more contracts for the purchase or delivery | 12 | | of coal that is to be replaced by United States high volatile | 13 | | rank bituminous coal with an emissions factor of less than 210 | 14 | | pounds of carbon dioxide per million btu and (ii) payments made | 15 | | by the owner of a coal-fueled electric generation facility, | 16 | | pursuant to contract, to the owner or operator of transmission | 17 | | facilities as the consideration for implementing transmission | 18 | | system efficiency improvements that will reduce congestion and | 19 | | increase capacity of generating units converted to burn coal | 20 | | meeting specified criteria. All grants shall be provided | 21 | | pursuant to contracts between the Department and an eligible | 22 | | recipient in accordance with this Section. Each grant must be | 23 | | provided for one or more specific capital projects, operating | 24 | | activities, contractual expenses and fees, or other expenses | 25 | | that have the specific objective or purpose of increasing the | 26 | | use of, maintaining the use of, or conversion to, high volatile |
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| 1 | | rank bituminous coal with an emissions factor of less than 210 | 2 | | pounds of carbon dioxide per million btu and mitigating the | 3 | | environmental impacts of operating the electric generating | 4 | | unit or units. Grants may be provided for capital projects, | 5 | | operating activities, contractual expenses and fees, and other | 6 | | expenses incurred or to be incurred for the purpose of | 7 | | increasing the use of, maintaining the use of, or conversion | 8 | | to, high volatile rank bituminous coal with an emissions factor | 9 | | of less than 210 pounds of carbon dioxide per million btu and | 10 | | having the following purposes or any other purpose that is | 11 | | consistent with the objectives of this Act: | 12 | | (1) installation or modification of emissions controls | 13 | | or other necessary equipment and materials on one or more | 14 | | coal-fueled electric generating units; | 15 | | (2) efficiency improvements such as reductions in heat | 16 | | rate at one or more coal-fueled electric generating units | 17 | | that reduce the amount of coal that must be burned to | 18 | | produce a megawatthour of electricity; | 19 | | (3) modifications or conversion of an existing | 20 | | coal-fueled electric generating unit to a coal-fueled | 21 | | electric generating unit capable of using high volatile | 22 | | rank bituminous coal with an emissions factor of less than | 23 | | 210 pounds of carbon dioxide per million btu while meeting | 24 | | applicable environmental requirements; | 25 | | (4) installation of or modifications to equipment at | 26 | | other electric generating units in the grant recipient's |
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| 1 | | generating fleet that are necessary to enable the grant | 2 | | recipient to use high volatile rank bituminous coal with an | 3 | | emissions factor of less than 210 pounds of carbon dioxide | 4 | | per million btu at one or more electric generating units | 5 | | while complying with applicable State and federal | 6 | | emissions requirements on a fleet-wide basis; | 7 | | (5) transmission system efficiency improvements to | 8 | | reduce congestion and increase the capacity of units that | 9 | | burn coal meeting specified criteria; and | 10 | | (6) funding the costs of operating activities, | 11 | | contractual expenses and fees, and other expenses incurred | 12 | | to enable the increased use of, maintained use of, or | 13 | | conversion to, high volatile rank bituminous coal with an | 14 | | emissions factor of less than 210 pounds of carbon dioxide | 15 | | per million btu. | 16 | | (b) Grant funds awarded may be paid to the recipient on a | 17 | | one-time basis or over a period of up to 5 years in accordance | 18 | | with the terms of the contract between the Department and the | 19 | | recipient. No grant amount shall exceed $500,000,000 in total | 20 | | over the term of the grant. | 21 | | (c) The Department may provide grants based on the amount | 22 | | of funds available in the Clean Coal Technology Development and | 23 | | Utilization Fund; provided that at no time may payments be made | 24 | | to any recipient in excess of the total amount of funds | 25 | | available in the Clean Coal Technology Development and | 26 | | Utilization Fund. |
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| 1 | | (d) The grant contract between the Department and the | 2 | | recipient shall include, at a minimum, the following terms: | 3 | | (1) the name and location of the coal-fueled electric | 4 | | generating unit or units at or for which the capital | 5 | | project, operating activity, or expense for which the grant | 6 | | is being provided will be implemented or incurred; | 7 | | (2) the total amount of the grant and the timing of the | 8 | | release of the grant funds to the recipient, such as in a | 9 | | single payment or in a series of periodic payments over a | 10 | | period of up to 5 years; | 11 | | (3) a detailed description of the capital project, | 12 | | operating activity, contractual expense or fee, or other | 13 | | expense for which the grant is being provided, including a | 14 | | description of the manner in which the capital project, | 15 | | operating activity, or expense will enable or facilitate an | 16 | | increase in the use of, maintained use of, or conversion | 17 | | to, high volatile rank bituminous coal with an emissions | 18 | | factor of less than 210 pounds of carbon dioxide per | 19 | | million btu and mitigate environmental impacts of the | 20 | | operation of the coal-fueled electric generating unit; | 21 | | (4) a detailed schedule for execution, implementation, | 22 | | and completion of the capital project or operating | 23 | | activity; | 24 | | (5) quantifiable performance objectives or outcomes of | 25 | | the capital project, operating activity, contractual | 26 | | expense or fee, or other expense with respect to the |
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| 1 | | increased use of, maintained use of, or conversion to, high | 2 | | volatile rank bituminous coal with an emissions factor of | 3 | | less than 210 pounds of carbon dioxide per million btu and | 4 | | mitigation of environmental impacts of operation of the | 5 | | generating unit or units, including a description of the | 6 | | manner in which achievement of the performance objectives | 7 | | or outcomes will be measured and will be reported by the | 8 | | recipient to the Department; | 9 | | (6) a description of procedures by which the recipient | 10 | | will (i) maintain accounts and records of expenditures of | 11 | | grant funds, which accounts and records shall be made | 12 | | available for inspection and audit by the Department on | 13 | | reasonable notice, and (ii) provide periodic reports to the | 14 | | Department on the expenditure of grant funds and on | 15 | | progress in implementing or completing the capital project | 16 | | or operating activity; | 17 | | (7) a provision specifying that the grant amount will | 18 | | not be increased if the cost of the capital project or | 19 | | operating activity or the amount of the contractual | 20 | | expenses and fees or other expenses exceeds the estimated | 21 | | cost stated in the contract; | 22 | | (8) provisions specifying that if the performance | 23 | | objectives or outcomes for the capital project, operating | 24 | | activity, contractual expenses and fees or other expenses | 25 | | as specified in the contract are not achieved based on the | 26 | | measurement methods specified in the contract, a portion of |
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| 1 | | the grant amount will be repaid by the recipient to the | 2 | | Department in accordance with measures and procedures | 3 | | specified in the contract; and | 4 | | (9) such other usual and customary provisions for the | 5 | | administration and monitoring of grants and grant | 6 | | recipients as the Department may by rule adopt. | 7 | | (20 ILCS 1105/20 new) | 8 | | Sec. 20. Clean Coal Technology Development and Utilization | 9 | | Fund. | 10 | | (a) The Clean Coal Technology Development and Utilization | 11 | | Fund is created as a special fund in the State treasury. | 12 | | (b) The Clean Coal Technology Development and Utilization | 13 | | Fund shall be administered by the Department to provide grants | 14 | | under Section 17 of this Act.
| 15 | | Section 10. The State Finance Act is amended by adding | 16 | | Section 5.878 as follows: | 17 | | (30 ILCS 105/5.878 new) | 18 | | Sec. 5.878. The Clean Coal Technology Development and | 19 | | Utilization Fund. | 20 | | ARTICLE 99. EFFECTIVE DATE. | 21 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.".
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