State of Illinois
92nd General Assembly
Legislation

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92_HB2571ham001

 










                                           LRB9206975SMdvam01

 1                    AMENDMENT TO HOUSE BILL 2571

 2        AMENDMENT NO.     .  Amend House Bill 2571  by  replacing
 3    the title with the following:
 4        "AN ACT concerning coal."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section  1.  Short title.  This Act may be cited as  the
 8    Illinois Coal Mining and Electric Generation Act.

 9        Section 5. Findings.  The General Assembly finds that:
10        (1)  Illinois   coal  is  an  abundant  resource  and  an
11    important component of Illinois' economy whose use should  be
12    encouraged  to  the  greatest extent possible consistent with
13    protecting human health and the environment.
14        (2)  The development of  energy  policies  to  promote  a
15    safe,  sufficient,  reliable, and affordable energy supply on
16    the State  and  national  level  is  being  affected  by  the
17    on-going  deregulation  of  the power generation industry and
18    the evolving energy markets.
19        (3)  The Governor's formation of an  Energy  Cabinet  and
20    the  development  of a State energy policy indicates the need
21    for increased generation capacity to meet  future  needs  for
 
                            -2-            LRB9206975SMdvam01
 1    electricity.
 2        (4)  Efforts on the State and federal levels are underway
 3    to  consider the multiple environmental regulations affecting
 4    electric generating plants in order to improve the ability of
 5    government and the affected industry to engage  in  effective
 6    planning.

 7        Section 10.  Definitions.  For the purposes of this Act:
 8        "New  electric  generating  facility"  means  a  new coal
 9    burning electricity generating facility that:
10             (1)  has a nameplate capacity of  500  megawatts  or
11        greater used primarily to generate electricity for sale;
12             (2)  is located in Illinois;
13             (3)  burns Illinois coal;
14             (4)  is sited adjacent to a coal mine; and
15             (5)  employs qualified personnel.
16        "Qualified   personnel"   means  employees  who  install,
17    operate,   and   maintain   generation,   transmission,    or
18    distribution   facilities  within  the  State  and  have  the
19    requisite knowledge, skills, and competence to perform  those
20    functions  in  a  safe  and  responsible  manner  in order to
21    provide safe, reliable service.

22        Section 15.  Purpose.  It is the policy of the  State  to
23    encourage  increased electric generation capacity to meet the
24    future needs for electricity in Illinois.   To  further  that
25    goal this Act provides partial financing for the construction
26    of new electric generating facilities in Illinois.

27        Section 20.  The Energy Conservation and Coal Development
28    Act is amended by changing Section 8 as follows:

29        (20 ILCS 1105/8) (from Ch. 96 1/2, par. 7408)
30        Sec. 8.  Illinois Coal Development Board.
 
                            -3-            LRB9206975SMdvam01
 1        (a)  There  shall  be established as an advisory board to
 2    the  Department,  the  Illinois   Coal   Development   Board,
 3    hereinafter  in  this  Section  called  the Board.  The Board
 4    shall be  composed  of  the  following  voting  members:  the
 5    Director  of  the  Department, who shall be Chairman thereof;
 6    the Deputy Director of the  Bureau  of  Business  Development
 7    within  the Department of Commerce and Community Affairs; the
 8    Director of Natural Resources or  that  Director's  designee;
 9    the  Director  of the Office of Mines and Minerals within the
10    Department of Natural Resources; 4  members  of  the  General
11    Assembly  (one each appointed by the President of the Senate,
12    the Senate Minority Leader, the Speaker of the House, and the
13    House Minority  Leader);  and  8  persons  appointed  by  the
14    Governor,   with  the  advice  and  consent  of  the  Senate,
15    including representatives of  Illinois  industries  that  are
16    involved  in the extraction, utilization or transportation of
17    Illinois coal,  persons  representing  financial  or  banking
18    interests   in   the   State,   and  persons  experienced  in
19    international  business  and  economic  development.    These
20    members  shall  be  chosen from persons of recognized ability
21    and  experience  in  their  designated  field.   The  members
22    appointed by the Governor shall serve for terms of  4  years,
23    unless  otherwise  provided  in this subsection.  The initial
24    terms of the original appointees  shall  expire  on  July  1,
25    1985,  except  that  the  Governor  shall  designate 3 of the
26    original appointees to serve initial terms that shall  expire
27    on July 1, 1983.  The initial term of the member appointed by
28    the  Governor  to  fill the office created after July 1, 1985
29    shall expire on July 1,  1989.   The  initial  terms  of  the
30    members appointed by the Governor to fill the offices created
31    by  this amendatory Act of 1993 shall expire on July 1, 1995,
32    and July 1, 1997, as determined by  the  Governor.  A  member
33    appointed  by  a  Legislative  Leader  shall  serve  for  the
34    duration  of  the  General  Assembly  for  which he or she is
 
                            -4-            LRB9206975SMdvam01
 1    appointed, so long as the member remains  a  member  of  that
 2    General Assembly.
 3        The  Board shall meet at least annually or at the call of
 4    the Chairman.  At any time the  majority  of  the  Board  may
 5    petition  the  Chairman  for  a  meeting  of the Board.  Nine
 6    members of the Board shall constitute a quorum.   Members  of
 7    the  Board  shall  be  reimbursed  for  actual  and necessary
 8    expenses incurred while performing their duties as members of
 9    the Board from funds appropriated to the Department for  such
10    purpose.
11        (b)  The    Board   shall   provide   advice   and   make
12    recommendations  on  the  following  Department  powers   and
13    duties:
14             (1)  To  develop  an annual agenda which may include
15        but  is  not  limited  to  research   and   methodologies
16        conducted  for  the purpose of increasing the utilization
17        of Illinois' coal and other fossil fuel  resources,  with
18        emphasis  on  high  sulfur  coal, in the following areas:
19        coal extraction, preparation and  characterization;  coal
20        technologies (combustion, gasification, liquefaction, and
21        related   processes);  marketing;  public  awareness  and
22        education, as those terms are used in the  Illinois  Coal
23        Technology  Development  Assistance  Act; transportation;
24        procurement  of  sites  and  issuance  of  permits;   and
25        environmental impacts.
26             (2)  To   support   and   coordinate  Illinois  coal
27        research, and to approve  projects  consistent  with  the
28        annual  agenda  and  budget  for  coal  research  and the
29        purposes of this Act and to approve the annual budget and
30        operating plan for administration of the Board.
31             (3)  To  promote  the  coordination   of   available
32        research  information  on  the  production,  preparation,
33        distribution  and uses of Illinois coal.  The Board shall
34        advise the  existing  research  institutions  within  the
 
                            -5-            LRB9206975SMdvam01
 1        State on areas where research may be necessary.
 2             (4)  To  cooperate  to  the  fullest extent possible
 3        with  State  and  federal   agencies   and   departments,
 4        independent  organizations,  and other interested groups,
 5        public  and  private,  for  the  purposes  of   promoting
 6        Illinois coal resources.
 7             (5)  To  submit an annual report to the Governor and
 8        the  General  Assembly   outlining   the   progress   and
 9        accomplishments made in the year, providing an accounting
10        of  funds received and disbursed, reviewing the status of
11        research  contracts,  and   furnishing   other   relevant
12        information.
13             (6)  To  focus  on existing coal research efforts in
14        carrying  out  its  mission;  to  make  use  of  existing
15        research facilities in  Illinois  or  other  institutions
16        carrying  out  research  on  Illinois  coal;  as  far  as
17        practicable,   to   make  maximum  use  of  the  research
18        facilities available at  the  Illinois  State  Geological
19        Survey,  the  Coal  Extraction  and  Utilization Research
20        Center,  the   Illinois   Coal   Development   Park   and
21        universities  and  colleges  located  within the State of
22        Illinois; and to create  a  consortium  or  center  which
23        conducts,   coordinates   and   supports   coal  research
24        activities  in  the  State  of  Illinois.    Programmatic
25        activities  of  such  a  consortium  or  center  shall be
26        subject to  approval  by  the  Department  and  shall  be
27        consistent with the purposes of this Act.  The Department
28        may  authorize  expenditure  of  funds  in support of the
29        administrative and  programmatic  operations  of  such  a
30        center   or  consortium  consistent  with  its  statutory
31        authority.  Administrative actions undertaken by  or  for
32        such  a  center  or  consortium  shall  be subject to the
33        approval of the Department.
34             (7)  To make a reasonable attempt, before initiating
 
                            -6-            LRB9206975SMdvam01
 1        any research under this  Act,  to  avoid  duplication  of
 2        effort  and  expense by coordinating the research efforts
 3        among  various  agencies,  departments,  universities  or
 4        organizations, as the case may be.
 5             (8)  To adopt, amend and repeal  rules,  regulations
 6        and bylaws governing the Board's organization and conduct
 7        of business.
 8             (9)  To authorize the expenditure of monies from the
 9        Coal  Technology  Development Assistance Fund, the Public
10        Utility Fund  and  other  funds  in  the  State  Treasury
11        appropriated  to  the  Department,  consistent  with  the
12        purposes of this Act.
13             (10)  To seek, accept, and expend gifts or grants in
14        any  form,  from  any  public  agency  or  from any other
15        source.  Such gifts and grants may be held  in  trust  by
16        the  Department  and  expended  at  the  direction of the
17        Department and in the exercise of the Department's powers
18        and performance of the Department's duties.
19             (11)  To publish, from time to time, the results  of
20        Illinois   coal  research  projects  funded  through  the
21        Department.
22             (12)  To authorize loans  from  appropriations  from
23        the Build Illinois Bond Purposes Fund, the Build Illinois
24        Bond  Fund  and  the Illinois Industrial Coal Utilization
25        Fund.
26             (13)  To authorize expenditures of monies  for  coal
27        development projects under the authority of Section 13 of
28        the General Obligation Bond Act.
29        (c)  The   Board  shall  also  provide  advice  and  make
30    recommendations  on  the  following  Department  powers   and
31    duties:
32             (1)  To  create  and  maintain thorough, current and
33        accurate records on all markets for and  actual  uses  of
34        coal   mined  in  Illinois,  and  to  make  such  records
 
                            -7-            LRB9206975SMdvam01
 1        available to the public upon request.
 2             (2)  To identify all current and anticipated  future
 3        technical,      economic,      institutional,     market,
 4        environmental, regulatory and other  impediments  to  the
 5        utilization of Illinois coal.
 6             (3)  To monitor and evaluate all proposals and plans
 7        of  public  utilities  related  to  compliance  with  the
 8        requirements  of  Title  IV  of the federal Clean Air Act
 9        Amendments of 1990, or with any  other  law  which  might
10        affect  the use of Illinois coal, for the purposes of (i)
11        determining the effects of such proposals or plans on the
12        use of Illinois coal, and  (ii)  identifying  alternative
13        plans or actions which would maintain or increase the use
14        of Illinois coal.
15             (4)  To  develop  strategies and to propose policies
16        to promote environmentally responsible uses  of  Illinois
17        coal  for  meeting  electric  power  supply requirements,
18        including new power generation, and for other purposes.
19             (5)  (Blank).
20    (Source: P.A.  89-445,  eff.  2-7-96;  90-348,  eff.  1-1-98;
21    90-454, eff. 8-16-97.)

22        Section  25.   The  Illinois  Coal and Energy Development
23    Bond Act is amended by changing Section 2 as follows:

24        (20 ILCS 1110/2) (from Ch. 96 1/2, par. 4102)
25        Sec. 2.  As used in this Act, "coal" or "coal  resources"
26    include  coal,  coal  products  or by-products, including the
27    generation of electricity and synthetic  fuels.  "Development
28    of  fossil  fuels  and  coal  resources"  includes  research,
29    development,   and   demonstration  of  improved  methods  of
30    discovery, production,  transportation,  sale,  distribution,
31    conversion, utilization, end-use and waste disposal of fossil
32    fuels  and coal resources.  "Development of alternative forms
 
                            -8-            LRB9206975SMdvam01
 1    of energy" includes research, development  and  demonstration
 2    for the purposes of promoting the adoption and utilization of
 3    energy  systems,  including  but not limited to solar heating
 4    and   cooling,    solar    passive,    photovoltaic,    wind,
 5    bioconversion,  geothermal,  hydroelectric,  re-use  of waste
 6    energy, re-use of  waste  materials,  and  any  other  energy
 7    system  except  that  which  is  generated by nuclear energy.
 8    "Fossil fuels" include petroleum, petroleum  by-products  and
 9    natural gas.
10    (Source: P.A. 84-1452.)

11        Section  30.   The General Obligation Bond Act is amended
12    by changing Sections 2, 7, and 13 as follows:

13        (30 ILCS 330/2) (from Ch. 127, par. 652)
14        Sec. 2. Authorization for Bonds.  The State  of  Illinois
15    is  authorized  to issue, sell and provide for the retirement
16    of General Obligation Bonds of the State of Illinois for  the
17    categories  and  specific  purposes  expressed  in Sections 2
18    through 8 of this Act, in the total amount of $14,697,632,592
19    $14,197,632,592.
20        The bonds authorized in this Section 2 and in Section  16
21    of this Act are herein called "Bonds".
22        Of  the  total amount of Bonds authorized in this Act, up
23    to $2,200,000,000 in aggregate original principal amount  may
24    be  issued  and  sold  in  accordance  with the Baccalaureate
25    Savings Act in the form of General Obligation College Savings
26    Bonds.
27        Of the total amount of Bonds authorized in this  Act,  up
28    to $300,000,000 in aggregate original principal amount may be
29    issued and sold in accordance with the Retirement Savings Act
30    in the form of General Obligation Retirement Savings Bonds.
31        The  issuance  and  sale of Bonds pursuant to the General
32    Obligation Bond Act is an economical and efficient method  of
 
                            -9-            LRB9206975SMdvam01
 1    financing  the  capital  needs  of  the State.  This Act will
 2    permit the issuance of  a  multi-purpose  General  Obligation
 3    Bond  with  uniform  terms  and features.  This will not only
 4    lower the cost of registration but also  reduce  the  overall
 5    cost  of  issuing  debt  by  improving  the  marketability of
 6    Illinois General Obligation Bonds.
 7    (Source: P.A. 90-1, eff. 2-20-97; 90-8, eff. 12-8-97; 90-549,
 8    eff. 12-8-97;  90-586,  eff.  6-4-98;  91-39,  eff.  6-15-99;
 9    91-53, eff 6-30-99; 91-710, eff. 5-17-00.)

10        (30 ILCS 330/7) (from Ch. 127, par. 657)
11        Sec.  7.  Coal  and  Energy  Development.   The amount of
12    $663,200,000 $163,200,000 is authorized to  be  used  by  the
13    Department  of  Commerce  and  Community Affairs for coal and
14    energy development purposes, pursuant to Sections  2,  3  and
15    3.1 of the Illinois Coal and Energy Development Bond Act, and
16    for  the  purposes  specified  in  Section  8.1 of the Energy
17    Conservation and Coal Development Act.  Of  this  amount  (i)
18    $115,000,000  is  for  the  specific purposes of acquisition,
19    development,   construction,   reconstruction,   improvement,
20    financing,   architectural   and   technical   planning   and
21    installation of capital facilities consisting  of  buildings,
22    structures,  durable  equipment,  and land for the purpose of
23    capital development of coal resources within  the  State  and
24    for  the  purposes  specified  in  Section  8.1 of the Energy
25    Conservation and Coal Development Act,  (ii)  $35,000,000  is
26    for  the  purposes  specified  in  Section  8.1 of the Energy
27    Conservation and Coal Development Act and making a  grant  to
28    the  owner  of  a  generating station located in Illinois and
29    having  at  least  three  coal-fired  generating  units  with
30    accredited summer capability greater than 500 megawatts  each
31    at  such  generating station as provided in Section 6 of that
32    Bond Act, (iii) and $13,200,000 is for research,  development
33    and  demonstration of forms of energy other than that derived
 
                            -10-           LRB9206975SMdvam01
 1    from  coal,  either  on  or  off  State  property,  and  (iv)
 2    $500,000,000  is  for  the  specific  purpose  of   partially
 3    financing  new  coal  burning  electric  generating  facility
 4    projects  using  Illinois  coal  and  sited  adjacent  to  an
 5    Illinois  coal  mine  as provided in the Illinois Coal Mining
 6    and Electric Generation Act; the project may include the cost
 7    of transmission facilities and the costs  of  coal  handling;
 8    the  Department  may consider stockpiled air emission credits
 9    as a factor in funding new generating facilities.
10    (Source: P.A.  89-445,  eff.  2-7-96;  90-312,  eff.  8-1-97;
11    90-549, eff. 12-8-97.)

12        (30 ILCS 330/13) (from Ch. 127, par. 663)
13        Sec. 13. Appropriation of Proceeds from Sale of Bonds.
14        (a)  At  all  times,  the proceeds from the sale of Bonds
15    issued pursuant to this Act are subject to  appropriation  by
16    the  General  Assembly  and may be obligated or expended only
17    with the written approval of the Governor, in  such  amounts,
18    at  such times, and for such purposes as the respective State
19    agencies, as defined in Section 1-7  of  the  Illinois  State
20    Auditing Act, as amended, deem necessary or desirable for the
21    specific  purposes  contemplated  in  Sections 2 through 8 of
22    this Act.
23        (b)  Proceeds from the sale of Bonds for the  purpose  of
24    development  of coal and alternative forms of energy shall be
25    expended in such amounts and at such times as the  Department
26    of  Commerce  and  Community  Affairs,  with  the  advice and
27    recommendation of the Illinois  Coal  Development  Board  for
28    coal  development  projects, may deem necessary and desirable
29    for the specific purpose contemplated by Section  7  of  this
30    Act.  In  considering  the approval of projects to be funded,
31    the Department of Commerce and Community Affairs  shall  give
32    special  consideration  to projects designed to remove sulfur
33    and other pollutants in the preparation  and  utilization  of
 
                            -11-           LRB9206975SMdvam01
 1    coal,  and  in  the  use  and  operation  of  new or existing
 2    electric utility generating plants and industrial  facilities
 3    which utilize Illinois coal as their primary source of fuel.
 4        (c)  Any  monies  received  by any officer or employee of
 5    the  state  representing  a  reimbursement  of   expenditures
 6    previously  paid  from general obligation bond proceeds shall
 7    be deposited into the General Obligation Bond Retirement  and
 8    Interest Fund authorized in Section 14 of this Act.
 9    (Source: P.A. 89-445, eff. 2-7-96; 90-348, eff. 1-1-98.)

10        Section  99.   Effective  date.  This Act takes effect on
11    July 1, 2001.".

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