State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ][ Senate Amendment 001 ]

90_SB0250enr

      20 ILCS 1105/8            from Ch. 96 1/2, par. 7408
          Amends the Energy Conservation and Coal Development  Act.
      Provides  that the Illinois Coal Development Board shall have
      16 members (now 13) with a quorum of 9 (now 7).  Adds to  the
      board   the   Deputy  Director  of  the  Bureau  of  Business
      Development within the Department of Commerce  and  Community
      Affairs  and 4 legislators to be appointed by the legislative
      leaders  to  serve for the duration of that General Assembly.
      Deletes the provision that places the  2  co-chairpersons  of
      the Citizens Council on Energy Resources on the board.
                                                     LRB9000888PTcw
SB250 Enrolled                                 LRB9000888PTcw
 1        AN ACT concerning the Illinois Coal Development Board.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The Energy Conservation and Coal  Development
 5    Act is amended by changing Sections 8 and 9 as follows:
 6        (20 ILCS 1105/8) (from Ch. 96 1/2, par. 7408)
 7        Sec. 8.  Illinois Coal Development Board.
 8        (a)  There  shall be established as an advisory board to,
 9    within the Department, the Illinois Coal  Development  Board,
10    hereinafter  in  this  Section  called  the Board.  The Board
11    shall  be  composed  of  the  following  13  voting   members
12    including:  the  Director  of  the  Department,  who shall be
13    Chairman thereof;  the  Deputy  Director  of  the  Bureau  of
14    Business  Development  within  the Department of Commerce and
15    Community Affairs; the Director of Natural Resources or  that
16    Director's  designee; the Director of the Office of Mines and
17    Minerals  within  the  Department  of  Natural  Resources;  4
18    members of the General Assembly (one each  appointed  by  the
19    President  of  the  Senate,  the  Senate Minority Leader, the
20    Speaker of the House, and the House Minority Leader) the  two
21    co-chairpersons  of the Citizens Council on Energy Resources,
22    created by Public Act 84-15; and 8 persons appointed  by  the
23    Governor,   with  the  advice  and  consent  of  the  Senate,
24    including representatives of  Illinois  industries  that  are
25    involved  in the extraction, utilization or transportation of
26    Illinois coal,  persons  representing  financial  or  banking
27    interests   in   the   State,   and  persons  experienced  in
28    international  business  and  economic  development.    These
29    members  shall  be  chosen from persons of recognized ability
30    and experience in their designated field.   The  8  appointed
31    members  appointed by the Governor shall serve for terms of 4
SB250 Enrolled              -2-                LRB9000888PTcw
 1    years, unless otherwise provided  in  this  subsection.   The
 2    initial terms of the original appointees shall expire on July
 3    1,  1985,  except  that the Governor shall designate 3 of the
 4    original appointees to serve initial terms that shall  expire
 5    on July 1, 1983.  The initial term of the member appointed by
 6    the  Governor  to  fill the office created after July 1, 1985
 7    shall expire on July 1,  1989.   The  initial  terms  of  the
 8    members appointed by the Governor to fill the offices created
 9    by  this amendatory Act of 1993 shall expire on July 1, 1995,
10    and July 1, 1997, as determined by  the  Governor.  A  member
11    appointed  by  a  Legislative  Leader  shall  serve  for  the
12    duration  of  the  General  Assembly  for  which he or she is
13    appointed, so long as the member remains  a  member  of  that
14    General Assembly.
15        The  Board shall meet at least annually or at the call of
16    the Chairman.  At any time the  majority  of  the  Board  may
17    petition the Chairman for a meeting of the Board.  Nine Seven
18    members  of  the Board shall constitute a quorum.  Members of
19    the Board  shall  be  reimbursed  for  actual  and  necessary
20    expenses incurred while performing their duties as members of
21    the  Board from funds appropriated to the Department for such
22    purpose.
23        (b)  The   Board   shall   provide   advice   and    make
24    recommendations  on  have the following Department powers and
25    duties:
26             (1)  To develop an annual agenda which  may  include
27        but   is   not  limited  to  research  and  methodologies
28        conducted for the purpose of increasing  the  utilization
29        of  Illinois'  coal and other fossil fuel resources, with
30        emphasis on high sulfur coal,  in  the  following  areas:
31        coal  extraction,  preparation and characterization; coal
32        technologies (combustion, gasification, liquefaction, and
33        related  processes);  marketing;  public  awareness   and
34        education,  as  those terms are used in the Illinois Coal
SB250 Enrolled              -3-                LRB9000888PTcw
 1        Technology Development  Assistance  Act;  transportation;
 2        procurement   of  sites  and  issuance  of  permits;  and
 3        environmental impacts.
 4             (2)  To  support  and   coordinate   Illinois   coal
 5        research,  and  to  approve  projects consistent with the
 6        annual agenda  and  budget  for  coal  research  and  the
 7        purposes  of this Act and to. The Board shall review and,
 8        if acceptable, approve the annual  budget  and  operating
 9        plan  submitted  by  the Department for administration of
10        the Board Board's projects and funds.
11             (3)  To  promote  the  coordination   of   available
12        research  information  on  the  production,  preparation,
13        distribution  and uses of Illinois coal.  The Board shall
14        advise the  existing  research  institutions  within  the
15        State on areas where research may be necessary.
16             (4)  To  cooperate  to  the  fullest extent possible
17        with  State  and  federal   agencies   and   departments,
18        independent  organizations,  and other interested groups,
19        public  and  private,  for  the  purposes  of   promoting
20        Illinois coal resources.
21             (5)  To  submit an annual report to the Governor and
22        the  General  Assembly   outlining   the   progress   and
23        accomplishments made in the year, providing an accounting
24        of  funds received and disbursed, reviewing the status of
25        research  contracts,  and   furnishing   other   relevant
26        information.
27             (6)  To  focus  on existing coal research efforts in
28        carrying out its mission;. The  Board  shall  attempt  to
29        make  use  of existing research facilities in Illinois or
30        other institutions  carrying  out  research  on  Illinois
31        coal;.  as  far  as  practicable, to the Board shall make
32        maximum use of the research facilities available  at  the
33        Illinois State Geological Survey, the Coal Extraction and
34        Utilization    Research   Center,   the   Illinois   Coal
SB250 Enrolled              -4-                LRB9000888PTcw
 1        Development Park and universities  and  colleges  located
 2        within  the  State  of  Illinois; and to.  Subject to the
 3        approval of the Department, and in conjunction  with  its
 4        statutory   responsibilities,  the  Board  may  create  a
 5        consortium or  center  which  conducts,  coordinates  and
 6        supports   coal  research  activities  in  the  State  of
 7        Illinois.  Programmatic activities of such  a  consortium
 8        or  center shall be subject to approval by the Department
 9        Board and shall be consistent with the purposes  of  this
10        Act.   The  Department Board may authorize expenditure of
11        funds in support of the administrative  and  programmatic
12        operations of such a center or consortium consistent with
13        its    statutory   authority.    Administrative   actions
14        undertaken by or for such a center or consortium shall be
15        subject to the approval of the Department.
16             (7)  To make a reasonable attempt, before initiating
17        any research under this  Act,  to  avoid  duplication  of
18        effort  and  expense by coordinating the research efforts
19        among  various  agencies,  departments,  universities  or
20        organizations, as the case may be.
21             (8)  To adopt, amend and repeal  rules,  regulations
22        and  bylaws  governing  the Board's its organization and,
23        the conduct of business, and the exercise of  its  powers
24        and duties.
25             (9)  To authorize the expenditure of monies from the
26        Coal  Technology  Development Assistance Fund, the Public
27        Utility Fund  and  other  funds  in  the  State  Treasury
28        appropriated  to  the  Department,  consistent  with  the
29        purposes of this Act.
30             (10)  To seek, accept, and expend gifts or grants in
31        any  form,  from  any  public  agency  or  from any other
32        source.  Such gifts and grants may be held  in  trust  by
33        the  Department  and  expended  at  the  direction of the
34        Department Board and in the exercise of the  Department's
SB250 Enrolled              -5-                LRB9000888PTcw
 1        Board's   powers  and  performance  of  the  Department's
 2        Board's duties.
 3             (11)  To publish, from time to time, the results  of
 4        Illinois   coal  research  projects  funded  through  the
 5        Department Board.
 6             (12)  To authorize loans  from  appropriations  from
 7        the Build Illinois Bond Purposes Fund, the Build Illinois
 8        Bond  Fund  and  the Illinois Industrial Coal Utilization
 9        Fund.
10             (13)  To authorize expenditures of monies  for  coal
11        development projects under the authority of Section 13 of
12        the General Obligation Bond Act.
13        (c)  The   Board  shall  also  provide  advice  and  make
14    recommendations on have and exercise the following Department
15    powers and duties:
16             (1)  To create and maintain  thorough,  current  and
17        accurate  records  on  all markets for and actual uses of
18        coal  mined  in  Illinois,  and  to  make  such   records
19        available to the public upon request.
20             (2)  To  identify all current and anticipated future
21        technical,     economic,      institutional,      market,
22        environmental,  regulatory  and  other impediments to the
23        utilization of Illinois coal.
24             (3)  To monitor and evaluate all proposals and plans
25        of  public  utilities  related  to  compliance  with  the
26        requirements of Title IV of the  federal  Clean  Air  Act
27        Amendments  of  1990,  or  with any other law which might
28        affect the use of Illinois coal, for the purposes of  (i)
29        determining the effects of such proposals or plans on the
30        use  of  Illinois  coal, and (ii) identifying alternative
31        plans or actions which would maintain or increase the use
32        of Illinois coal.
33             (4)  To develop strategies and to  propose  policies
34        to  promote  environmentally responsible uses of Illinois
SB250 Enrolled              -6-                LRB9000888PTcw
 1        coal for meeting electric power supply  requirements  and
 2        for other purposes.
 3             (5)  (Blank).  To issue a report to the Governor and
 4        the General Assembly by October 1, 1991, and by  March  1
 5        of   each   year  thereafter,  describing  all  findings,
 6        conclusions and recommendations required by and developed
 7        pursuant to  this  subsection;  provided,  however,  that
 8        interim  reports may be issued whenever in the opinion of
 9        the Board there may be a need to do so.
10    (Source: P.A. 88-391; 89-445, eff. 2-7-96.)
11        (20 ILCS 1105/9) (from Ch. 96 1/2, par. 7409)
12        Sec.  9.   The  Illinois  Industrial   Coal   Utilization
13    Program.    The  Department  shall  administer  the  Illinois
14    Industrial Coal  Utilization  Program,  referred  to  as  the
15    "program".   The  purpose  of  the program is to increase the
16    environmentally sound  use  of  Illinois  coal  by  qualified
17    applicants.  To that end, the Department, with the assistance
18    of the Board, shall  operate  a  revolving  loan  program  to
19    partially  finance  new  coal  burning  facilities  sited  in
20    Illinois   or  conversion  of  existing  boilers  located  in
21    Illinois  to  coal  use,  referred  to  as  "industrial  coal
22    projects".
23        The  Department,  with  the  advice  and   recommendation
24    subject  to  the  approval  of  the Illinois Coal Development
25    Board, shall make below market rate loans available to fund a
26    portion of each  qualifying  industrial  coal  project.   The
27    applicant   must  demonstrate  that  it  is  able  to  obtain
28    additional financing from other sources to fund the remainder
29    of the project and that the project would not  occur  without
30    the Department's participation.  The Board and The Department
31    may,  in  part, rely on the financial evaluation completed by
32    the provider of the additional funding, as well  as  its  own
33    evaluation.
SB250 Enrolled              -7-                LRB9000888PTcw
 1        The Department shall have the following powers:
 2        (1)  To  accept grants, loans, or appropriations from the
 3    federal  government  or  the  State,   or   any   agency   or
 4    instrumentality of either, to be used for any purposes of the
 5    program,  including  operating  and  administrative  expenses
 6    associated with the program and the making of direct loans of
 7    those  funds  with  respect  to projects.  The Department may
 8    enter into any agreement with the federal government  or  the
 9    State,  or  any  agency  or  instrumentality  of  either,  in
10    connection with those grants, loans, or appropriations.
11        (2)  To  make  loans  from  appropriations from the Build
12    Illinois Purposes Fund or the Build Illinois Bond Fund and to
13    accept  guarantees  from  individuals,  partnerships,   joint
14    ventures,  corporations, and governmental agencies.  Any loan
15    or series  of loans shall be limited  to  an  amount  not  to
16    exceed  the  lesser of $4,000,000 or 60% of the total project
17    cost.
18        (3)  To establish interest rates, terms of repayment, and
19    other terms and conditions regarding loans  made  under  this
20    Act   as   the   Department   shall  determine  necessary  or
21    appropriate to protect the public interest and carry out  the
22    purposes of this Act.
23        (4)  To  receive,  evaluate, and establish time schedules
24    for the determination  of,  and  determine  applications  for
25    financial aid for the development, construction, acquisition,
26    or  improvement  of,  an  industrial  coal  project  from any
27    qualifying applicant and negotiate terms  and  conditions  on
28    which   the  coal  project  may  be  developed,  constructed,
29    improved, owned, or used by or leased to the applicant or its
30    successor in interest.  The Department  shall  prescribe  the
31    form  of  application.  The form shall contain, without being
32    limited to, the following:
33             (i)  a general description of  the  industrial  coal
34        project  and  of the developer, user, or tenant for which
SB250 Enrolled              -8-                LRB9000888PTcw
 1        the industrial project is to be established;
 2             (ii)  plans, equipment lists,  and  other  documents
 3        that  may  be  required  to show the type, structure, and
 4        general character of the project;
 5             (iii)  a general description of the expected use  of
 6        Illinois coal resulting from the project;
 7             (iv)  cost  estimates  of  developing, constructing,
 8        acquiring, or improving the industrial project;
 9             (v)  a general description of the financing plan for
10        the industrial coal project; and
11             (vi)  a general description and statement  of  value
12        of  any  property  and its improvements provided or to be
13        provided for the project by other sources.
14        Nothing in this Section shall be deemed to  preclude  the
15    Department, before the filing of any formal application, from
16    conducting  preliminary  discussions  and investigations with
17    respect  to   the   subject   matter   of   any   prospective
18    applications.
19    (Source: P.A. 87-14.)
20        Section  10.   The General Obligation Bond Act is amended
21    by changing Section 13 as follows:
22        (30 ILCS 330/13) (from Ch. 127, par. 663)
23        Sec. 13. Appropriation of Proceeds from Sale of Bonds.
24        (a)  At all times, the proceeds from the  sale  of  Bonds
25    issued  pursuant  to this Act are subject to appropriation by
26    the General Assembly and may be obligated  or  expended  only
27    with  the  written approval of the Governor, in such amounts,
28    at such times, and for such purposes as the respective  State
29    agencies,  as  defined  in  Section 1-7 of the Illinois State
30    Auditing Act, as amended, deem necessary or desirable for the
31    specific purposes contemplated in Sections  2  through  8  of
32    this Act.
SB250 Enrolled              -9-                LRB9000888PTcw
 1        (b)  Proceeds  from  the sale of Bonds for the purpose of
 2    development of coal and alternative forms of energy shall  be
 3    expended  in such amounts and at such times as the Department
 4    of Commerce  and  Community  Affairs,  with  the  advice  and
 5    recommendation  the approval of the Illinois Coal Development
 6    Board for coal development projects, may deem  necessary  and
 7    desirable  for the specific purpose contemplated by Section 7
 8    of this Act. In considering the approval of  projects  to  be
 9    funded,  the Department of Commerce and Community Affairs and
10    the Illinois  Coal  Development  Board,  shall  give  special
11    consideration to projects designed to remove sulfur and other
12    pollutants in the preparation and utilization of coal, and in
13    the  use  and operation of electric utility generating plants
14    and industrial facilities  which  utilize  Illinois  coal  as
15    their primary source of fuel.
16        (c)  Any  monies  received  by any officer or employee of
17    the  state  representing  a  reimbursement  of   expenditures
18    previously  paid  from general obligation bond proceeds shall
19    be deposited into the General Obligation Bond Retirement  and
20    Interest Fund authorized in Section 14 of this Act.
21    (Source: P.A. 89-445, eff. 2-7-96.)
22        Section  15.   The  Illinois  Coal Technology Development
23    Assistance Act is amended by changing Sections  4  and  6  as
24    follows:
25        (30 ILCS 730/4) (from Ch. 96 1/2, par. 8204)
26        Sec.  4.   Expenditures  from Coal Technology Development
27    Assistance Fund.
28        (a)  The contents  of  the  Coal  Technology  Development
29    Assistance  Fund may be expended, subject to appropriation by
30    the General Assembly, in such amounts and at  such  times  as
31    the  Department,  with the advice and recommendation approval
32    of the  Board,  may  deem  necessary  or  desirable  for  the
SB250 Enrolled              -10-               LRB9000888PTcw
 1    purposes of this Act.
 2        (b)  The   Department   shall   develop  a  written  plan
 3    containing measurable 3-year and 10-year goals and objectives
 4    in  regard  to  the  funding  of  coal  research   and   coal
 5    demonstration  and  commercialization  projects, and programs
 6    designed to preserve and enhance markets for  Illinois  coal.
 7    In  developing  these  goals  and  objectives, the Department
 8    shall consider and determine the appropriate balance for  the
 9    achievement  of  near-term and long-term goals and objectives
10    and  of  ensuring  the  timely  commercial   application   of
11    cost-effective technologies or energy and chemical production
12    processes  or  systems  utilizing coal.  The Department shall
13    develop the  initial  goals  and  objectives  no  later  than
14    December 1, 1993, and develop revised goals and objectives no
15    later than July 1 annually thereafter.
16        (c)  In  addition to any other permitted use of moneys in
17    the Fund, and notwithstanding any restriction on the  use  of
18    the   Fund,   moneys   in  the  Coal  Technology  Development
19    Assistance Fund may be transferred  to  the  General  Revenue
20    Fund  as  authorized  by  this  amendatory  Act of 1992.  The
21    General Assembly finds that an excess of moneys exists in the
22    Fund.  On February  1,  1992,  the  Comptroller  shall  order
23    transferred  and  the  Treasurer  shall transfer $500,000 (or
24    such lesser amount as may be  on  deposit  in  the  Fund  and
25    unexpended and unobligated on that date) from the Fund to the
26    General Revenue Fund.
27    (Source: P.A. 88-391; 89-499, eff. 6-28-96.)
28        (30 ILCS 730/6) (from Ch. 96 1/2, par. 8206)
29        Sec.   6.    Coal   demonstration  and  commercialization
30    project. No expenditure from the Fund may  be  made  for  any
31    coal demonstration and commercialization project until it has
32    been   approved   by  the  Department  with  the  advice  and
33    recommendation of the Board.
SB250 Enrolled              -11-               LRB9000888PTcw
 1        A specific proposal shall be deemed approved if the Board
 2    fails to act on it within the 45-day period.
 3        All coal research projects  shall  be  submitted  to  the
 4    Department,   with  the  advice  and  recommendation  of  the
 5    Illinois Coal Development Board, for approval as provided  in
 6    Section 8 of the Energy Conservation and Coal Development Act
 7    "An  Act  in  relation  to  natural resources, research, data
 8    collection and  environmental  studies",  approved  July  14,
 9    1978, as amended.
10    (Source: P.A. 84-1070.)

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