Full Text of HB3042 100th General Assembly
HB3042 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB3042 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: |
| 20 ILCS 1105/1 | from Ch. 96 1/2, par. 7401 | 20 ILCS 1105/17 new | | 20 ILCS 1105/20 new | | 30 ILCS 105/5.878 new | |
|
Creates the Energy and Environmental Security Act. Amends the Energy Conservation and Coal Development Act. Creates a Qualified Clean Coal Technology Grant Program for the purpose of funding grants that will allow the grant recipient to (i) meet the qualifications of a qualified clean coal facility, (ii) operate the electric generating unit as a qualified clean coal facility while complying with State and federal emissions requirements, and (iii) mitigate the environmental impacts of the operation of coal-fueled electric generation units. Creates the Clean Coal Development and Utilization Fund to provide funding for grants. Amends the State Finance Act to make a conforming change. Effective immediately.
|
| |
| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
| | | HB3042 | | LRB100 11071 RJF 21316 b |
|
| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | ARTICLE 1. SHORT TITLE. | 5 | | Section 1-1. Short title. This Act may be cited as the | 6 | | Energy and Environmental Security Act. | 7 | | ARTICLE 5. AMENDATORY PROVISIONS | 8 | | Section 5-5. The Energy Conservation and Coal Development | 9 | | Act is amended by changing Section 1 and by adding Sections 17 | 10 | | and 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 | 14 | | otherwise requires:
| 15 | | "Department" means the Department of Commerce and | 16 | | Economic Opportunity.
| 17 | | "Director" means the Director of Commerce and Economic | 18 | | Opportunity.
| 19 | | "Qualified Clean Coal Facility" means an electric | 20 | | generating facility which uses United States high volatile |
| | | HB3042 | - 2 - | LRB100 11071 RJF 21316 b |
|
| 1 | | rank bituminous coal with an emissions factor of less than | 2 | | 210 pounds of carbon dioxide per million BTU as its primary | 3 | | fuel source. | 4 | | (b) As provided in Section 80-20 of the Department of | 5 | | Natural Resources
Act, the Department of Commerce and Community | 6 | | Affairs (now Department of Commerce and Economic Opportunity)
| 7 | | shall assume the rights,
powers, and duties of the former | 8 | | Department of Energy and Natural Resources
under this Act, | 9 | | except as those rights, powers, and duties are otherwise
| 10 | | allocated or transferred by law.
| 11 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 12 | | (20 ILCS 1105/17 new) | 13 | | Sec. 17. Illinois Qualified Clean Coal Technology Grant | 14 | | Program. | 15 | | (a) Subject to appropriation, the Department shall provide | 16 | | grants for the purpose of funding or financing capital | 17 | | projects, operating activities, contractual expenses and fees, | 18 | | and other expenses that will allow the grant recipient to (i) | 19 | | meet the qualifications of a qualified clean coal facility, as | 20 | | defined in this Act, (ii) operate the electric generating unit | 21 | | as a qualified clean coal facility while complying with State | 22 | | and federal emissions requirements applicable to the grant | 23 | | recipient's entire electric generating fleet, and (iii) | 24 | | mitigate the environmental impacts of the operation of | 25 | | coal-fueled electric generation units in this State. For |
| | | HB3042 | - 3 - | LRB100 11071 RJF 21316 b |
|
| 1 | | purposes of this Section, "contractual expenses and fees" shall | 2 | | include, without limitation, (i) contractual termination fees | 3 | | paid by the owner of a coal-fueled electric generation facility | 4 | | to terminate one or more contracts for the purchase or delivery | 5 | | of coal that is to be replaced by United States high volatile | 6 | | rank bituminous coal with an emissions factor of less than 210 | 7 | | pounds of carbon dioxide per million btu and (ii) payments made | 8 | | by the owner of a coal-fueled electric generation facility, | 9 | | pursuant to contract, to the owner or operator of transmission | 10 | | facilities as the consideration for implementing transmission | 11 | | system efficiency improvements that will reduce congestion and | 12 | | increase capacity of generating units converted to burn coal | 13 | | meeting specified criteria. All grants shall be provided | 14 | | pursuant to contracts between the Department and an eligible | 15 | | recipient in accordance with this Section. Each grant must be | 16 | | provided for one or more specific capital projects, operating | 17 | | activities, contractual expenses and fees, or other expenses | 18 | | that have the specific objective or purpose of increasing the | 19 | | use of, or conversion to, high volatile rank bituminous coal | 20 | | with an emissions factor of less than 210 pounds of carbon | 21 | | dioxide per million btu and mitigating the environmental | 22 | | impacts of operating the electric generating unit or units. | 23 | | Grants may be provided for capital projects, operating | 24 | | activities, contractual expenses and fees, and other expenses | 25 | | incurred or to be incurred for the purpose of increasing the | 26 | | use of, or conversion to, high volatile rank bituminous coal |
| | | HB3042 | - 4 - | LRB100 11071 RJF 21316 b |
|
| 1 | | with an emissions factor of less than 210 pounds of carbon | 2 | | dioxide per million btu and having the following purposes or | 3 | | any other purpose that is consistent with the objectives of | 4 | | this Act: | 5 | | (1) installation or modification of emissions controls | 6 | | or other necessary equipment and materials on one or more | 7 | | coal-fueled electric generating units; | 8 | | (2) efficiency improvements such as reductions in heat | 9 | | rate at one or more coal-fueled electric generating units | 10 | | that reduce the amount of coal that must be burned to | 11 | | produce a megawatthour of electricity; | 12 | | (3) modifications or conversion of an existing | 13 | | coal-fueled electric generating unit to a coal-fueled | 14 | | electric generating unit capable of using high volatile | 15 | | rank bituminous coal with an emissions factor of less than | 16 | | 210 pounds of carbon dioxide per million btu while meeting | 17 | | applicable environmental requirements; | 18 | | (4) installation of or modifications to equipment at | 19 | | other electric generating units in the grant recipient's | 20 | | generating fleet that are necessary to enable the grant | 21 | | recipient to use high volatile rank bituminous coal with an | 22 | | emissions factor of less than 210 pounds of carbon dioxide | 23 | | per million btu at one or more electric generating units | 24 | | while complying with applicable State and federal | 25 | | emissions requirements on a fleet-wide basis; | 26 | | (5) transmission system efficiency improvements to |
| | | HB3042 | - 5 - | LRB100 11071 RJF 21316 b |
|
| 1 | | reduce congestion and increase capacity of units converted | 2 | | to burn coal meeting specified criteria; and | 3 | | (6) funding the costs of operating activities, | 4 | | contractual expenses and fees, and other expenses incurred | 5 | | to enable the increased use of, or conversion to, high | 6 | | volatile rank bituminous coal with an emissions factor of | 7 | | less than 210 pounds of carbon dioxide per million btu. | 8 | | (b) Grant funds awarded may be paid to the recipient on a | 9 | | one-time basis or over a period of up to 5 years in accordance | 10 | | with the terms of the contract between the Department and the | 11 | | recipient. No grant amount shall exceed $500,000,000 in total | 12 | | over the term of the grant. | 13 | | (c) The Department may provide grants based on the amount | 14 | | of funds available in the Clean Coal Technology Development and | 15 | | Utilization Fund; provided that at no time may payments be made | 16 | | to any recipient in excess of the total amount of funds | 17 | | available in the Clean Coal Technology Development and | 18 | | Utilization Fund. | 19 | | (d) The grant contract between the Department and the | 20 | | recipient shall include, at a minimum, the following terms: | 21 | | (1) the name and location of the coal-fueled electric | 22 | | generating unit or units at or for which the capital | 23 | | project, operating activity, or expense for which the grant | 24 | | is being provided will be implemented or incurred; | 25 | | (2) the total amount of the grant and the timing of the | 26 | | release of the grant funds to the recipient, such as in a |
| | | HB3042 | - 6 - | LRB100 11071 RJF 21316 b |
|
| 1 | | single payment or in a series of periodic payments over a | 2 | | period of up to 5 years; | 3 | | (3) a detailed description of the capital project, | 4 | | operating activity, contractual expense or fee, or other | 5 | | expense for which the grant is being provided, including a | 6 | | description of the manner in which the capital project, | 7 | | operating activity, or expense will enable or facilitate an | 8 | | increase in the use of, or conversion to, high volatile | 9 | | rank bituminous coal with an emissions factor of less than | 10 | | 210 pounds of carbon dioxide per million btu and mitigate | 11 | | environmental impacts of the operation of the coal-fueled | 12 | | electric generating unit; | 13 | | (4) a detailed schedule for execution, implementation, | 14 | | and completion of the capital project or operating | 15 | | activity; | 16 | | (5) quantifiable performance objectives or outcomes of | 17 | | the capital project, operating activity, contractual | 18 | | expense or fee, or other expense with respect to the | 19 | | increased use of, or conversion to, high volatile rank | 20 | | bituminous coal with an emissions factor of less than 210 | 21 | | pounds of carbon dioxide per million btu and mitigation of | 22 | | environmental impacts of operation of the generating unit | 23 | | or units, including a description of the manner in which | 24 | | achievement of the performance objectives or outcomes will | 25 | | be measured and will be reported by the recipient to the | 26 | | Department; |
| | | HB3042 | - 7 - | LRB100 11071 RJF 21316 b |
|
| 1 | | (6) a description of procedures by which the recipient | 2 | | will (i) maintain accounts and records of expenditures of | 3 | | grant funds, which accounts and records shall be made | 4 | | available for inspection and audit by the Department on | 5 | | reasonable notice, and (ii) provide periodic reports to the | 6 | | Department on the expenditure of grant funds and on | 7 | | progress in implementing or completing the capital project | 8 | | or operating activity; | 9 | | (7) a provision specifying that the grant amount will | 10 | | not be increased if the cost of the capital project or | 11 | | operating activity or the amount of the contractual | 12 | | expenses and fees or other expenses exceeds the estimated | 13 | | cost stated in the contract; | 14 | | (8) provisions specifying that if the performance | 15 | | objectives or outcomes for the capital project, operating | 16 | | activity, contractual expenses and fees or other expenses | 17 | | as specified in the contract are not achieved based on the | 18 | | measurement methods specified in the contract, a portion of | 19 | | the grant amount will be repaid by the recipient to the | 20 | | Department in accordance with measures and procedures | 21 | | specified in the contract; and | 22 | | (9) such other usual and customary provisions for the | 23 | | administration and monitoring of grants and grant | 24 | | recipients as the Department may by rule adopt. | 25 | | (20 ILCS 1105/20 new) |
| | | HB3042 | - 8 - | LRB100 11071 RJF 21316 b |
|
| 1 | | Sec. 20. Clean Coal Technology Development and Utilization | 2 | | Fund. | 3 | | (a) The Clean Coal Technology Development and Utilization | 4 | | Fund is created as a special fund in the State treasury. | 5 | | (b) The Clean Coal Technology Development and Utilization | 6 | | Fund shall be administered by the Department to provide grants | 7 | | under Section 17 of this Act.
| 8 | | Section 5-25. The State Finance Act is amended by adding | 9 | | Section 5.878 as follows: | 10 | | (30 ILCS 105/5.878 new) | 11 | | Sec. 5.878. The Clean Coal Technology Development and | 12 | | Utilization Fund. | 13 | | ARTICLE 99. EFFECTIVE DATE. | 14 | | Section 99-999. Effective date. This Act takes effect upon | 15 | | becoming law.
|
|