House Sponsors: GRANBERG-NOVAK-MADIGAN,MJ-BOST-REITZ, FRANKS, HARTKE, DART AND DAVIS,MONIQUE. Short description: GO BONDS-USE & OCC TAX-COAL Synopsis of Bill as introduced: Creates the Illinois Coal Mining and Coal Development Act. Creates the Illinois Coal Mining and Coal Development Board and authorizes the Board to provide advice and make recommendations on certain powers and duties of the Illinois Environmental Protection Agency with respect to coal-related matters. Authorizes the State to issue bonds in the amount of $500,000,000 for the purposes of architectural and technical planning and installation of sulfur dioxide and nitrogen oxide emission control systems for coal-fired electric generating units. Provides that the proceeds of the bonds shall be deposited into a separate fund known as the Coal Mining and Coal Development Fund, and amends the State Finance Act to create the Fund. Amends the General Obligation Bond Act. Increases the bond authorization limit by $500,000,000 for coal and energy development. Deletes language in the General Obligation Bond Act and the Illinois Coal and Energy Development Bond Act that directs DCCA to make a $35,000,000 grant to a generating station to construct a facility to reduce sulfur dioxide emissions at a coal-fired generating unit. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning February 1, 2002, each month the Department of Revenue shall pay into the General Obligation Bond Retirement and Interest Fund 80% of the net revenue realized for the preceding month from the selling price of coal until the Bureau of the Budget certifies to the Department that the amount that will be necessary to finance the $500,000,000 in additional general obligation bonds authorized to be issued under this amendatory Act of the 92nd General Assembly for coal development has been paid into that Fund. Effective July 1, 2001. STATE DEBT NOTE (Economic and Fiscal Commission) Assuming an interest rate of 6.0% and a 25-year level repayment period, the additional $500 million in bonding authority would increase total General Obligation Debt by approximately $950 million and annual debt service by approximately $39 million. HOUSE AMENDMENT NO. 1. Deletes reference to: 35 ILCS 105/9 35 ILCS 110/9 35 ILCS 115/9 35 ILCS 120/3 Deletes everything and reinserts the provisions of the bill as introduced with changes as follows. Changes the short title to the Clean Air and Development Act. Defines "project" as any proposal submitted to the Clean Air and Development Board in response to a request for project proposals that includes a technology that will enhance the use of Illinois coal in Illinois while enhancing environmental protection. Changes the composition of the Board. Provides that project funding may also be provided for sulfur dioxide control systems and transmission systems for new or existing coal-fired electric generating units. Adds items concerning which the Board shall provide advice and make recommendations to the Environmental Protection Agency. Provides for Board evaluation and recommendations concerning project proposals, and for Agency consideration of Board recommendations and notice to the Board and a provision for a hearing in cases of disagreement with Board recommendations. Deletes language requiring 80% of use and occupation tax revenue to be deposited into the General Obligation Bond Retirement and Interest Fund. Provides that on or before May 1 each year until the bonds authorized to be issued under this amendatory Act of the 92nd General Assembly for coal development have been paid, the Bureau of the Budget shall certify the amount necessary to be appropriated in the State fiscal year that begins on July 1 of that calendar year to finance the bonds authorized to be issued under this amendatory Act of the 92nd General Assembly for coal development. Effective July 1, 2001. STATE DEBT NOTE, H-AM 1 (Economic and Fiscal Commission) HB 63, as amended, would increase: General Obligation principal by $ 500 million Potential General Obligation debt by $ 950 million Annual debt service by $ 39 million FISCAL NOTE, H-AM 1 (Environmental Protection Agency) HB 63 has a significant fiscal impact. The bill will require the issuance of an additional $500 million in General Obliga- tion Bonds for use by EPA consistent with the Clean Air and Development Act. The Agency estimates that an additional $450,000 annually in general revenue will be necessary to implement and administer the program. HOUSE AMENDMENT NO. 4. Adds reference to: 20 ILCS 605/605-331 new 20 ILCS 655/5.3 20 ILCS 687/6-3 20 ILCS 3505/7 20 ILCS 3505/7.90 new 20 ILCS 3505/7.91 new 20 ILCS 3505/7.92 new 20 ILCS 3505/7.93 new 20 ILCS 3505/7.94 new 20 ILCS 3505/7.95 new 20 ILCS 3505/7.96 new 20 ILCS 3505/7.97 new 20 ILCS 3505/7.98 new 20 ILCS 3505/7.99 new 30 ILCS 105/5.546 new 35 ILCS 5/213 new 35 ILCS 105/3-5 35 ILCS 110/3-5 35 ILCS 115/3-5 35 ILCS 120/2-5 35 ILCS 200/15-72 new 220 ILCS 5/2-202 415 ILCS 5/9.9 415 ILCS 5/9.10 new Deletes everything. Creates the Clean Air and Development Law. Amends the General Obligation Bond Act to increase bonding authority by $500,000,000 and provides that the $500,000,000 is to be used by DCCA to fund projects that will enhance the use of Illinois coal in Illinois while enhancing environmental protection. Amends the Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997 to establish a pilot project to fund a biomass-to-fuels research facility in Illinois that uses agricultural feedstocks and advances technologies to develop a new environmentally friendly and sustainable industry. Amends the State Finance Act to create Funds into which bonding proceeds shall be deposited to fund these initiatives. Amends the Illinois Coal and Energy Development Bond Act and the Environmental Protection Act to implement the Clean Air and Development Law. Creates the Empower Illinois Law. Provides that the purpose of the Law is to use abundant coal reserves to turn Southern Illinois into the State's "power plant", providing power for Chicago and its suburbs, and reducing the need for peaker plants. Creates the Empower Illinois Commission to consider the most effective way to use Illinois coal to resolve the energy issues facing the State and provides that the Commission shall issue a report containing its recommendations to the Governor and the General Assembly on or before January 30, 2002. Provides that the Department of Natural Resources shall develop, in its Division of Mines and Minerals, a single point of review process for entities interested in building mine-mouth power plants and related power transmission lines that coordinates reviews by all involved State and federal agencies. Amends the Department of Commerce and Community Affairs Law of the Civil Administrative Code of Illinois. Defines "mine-mouth power plant" as a coal-fired power plant sited adjacent to a coal mine and provides that DCCA must establish by rule the standards that must be met to qualify as a related power transmission line. Amends the Illinois Enterprise Zone Act. Provides that DCCA may designate 12 additional Enterprise Zones for the construction of mine-mouth power plants. Provides that DCCA shall establish by rule the criteria for eligibility for certification of the 12 additional Enterprise Zones. Amends the Illinois Income Tax Act, the Use Tax Act, the Service Use Tax Act, the Retailers' Occupation Tax Act, the Property Tax Code, and the Public Utilities Act to provide various tax incentives for the construction of mine-mouth power plants and for the construction of related power transmission lines. Effective July 1, 2001. HOUSE AMENDMENT NO. 5. Amends the General Obligation Bond Act and makes comparable changes in the Clean Air and Development Law to provide that of the $500,000,000 authorized to be used by the Department of Commerce and Community Affairs for the purposes consistent with the Clean Air and Development Law, $100,000,000 must be used exclusively for the construction of mine-mouth power plants. STATE DEBT NOTE, H-AM 4,5 (Economic and Fiscal Commission) Same as previous State Debt notes. FISCAL NOTE, H-AM 4,5 (Department of Commerce and Community Affairs) HB 63 will have a fiscal impact on several State agencies and revenue sources in various ways: ..DCCA estimates the fiscal impact to be at least $450,000, including 5 additional headcount with specialized knowledge. The cost to the Department for recording fees and rulemaking associated with new or amended enterprise zones is unknown at this time. ..EPA estimates a cost of $250,000 in GRF to develop, promul- gate and implement rules for the recommended strategies and to prepare the report to the General Assembly regarding the poten- tial need for the control or reduction of emissions from fossil fuel-fired electric generating plants. ..BOB estimates the fiscal impact of the issuance of $500 mil- lion of General Obligation bonds to be approximately $40-$50 million per year for 25 years from GRF, assuming tax-exempt interest rates. ..The impact of the various exemptions and tax credits and the creation of additional enterprise zones on State revenues can- not be determined at this time. ..This fiscal note does not address the potential impact of HB 63 on the Illinois Development Finance Authority. STATE MANDATE NOTE, H-AM 4,5 (Department of Commerce and Community Affairs) In the opinion of DCCA, HB 63 (H-ams 4 and 5) creates a tax exemption mandate for which reimbursement of 100% of the in- creased costs to local governments is required under the State Mandates Act. An estimate of the increased costs to local gov- ernments is not available at this time. HOME RULE NOTE, H-AM 4,5 (Department of Commerce and Community Affairs) This legislation does not contain language indicating a pre- emption of home rule powers and functions. PENSION NOTE, H-AM 4,5 (Pension Laws Commission) HB 63 (H-ams 4 and 5) would not affect the accrued liabilities or annual cost of any Illinois public pension fund or retire- ment system. CORRECTIONAL NOTE, H-AM 4,5 (Department of Corrections) HB 63 (H-ams 4 and 5) does not have an impact on DOC. HOUSING AFFORDABILITY NOTE, H-AM 4,5 (Illinois Housing Development Authority) There will be no fiscal effect on the cost of constructing, purchasing, owning, or selling a single-family residence. JUDICIAL NOTE, H-AM 4, 5 (Office of the Illinois Courts) HB 63 (H-ams 4 and 5) would neither increase nor decrease the number of judges needed in the State. Last action on Bill: SESSION SINE DIE Last action date: JAN-07-2003 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 3 SENATE - 0 END OF INQUIRY Full Text Bill Status