Public Act 90-0348 of the 90th General Assembly

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Public Act 90-0348

SB250 Enrolled                                 LRB9000888PTcw

    AN ACT concerning the Illinois Coal Development Board.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.  The Energy Conservation and Coal Development
Act is amended by changing Sections 8 and 9 as follows:

    (20 ILCS 1105/8) (from Ch. 96 1/2, par. 7408)
    Sec. 8.  Illinois Coal Development Board.
    (a)  There shall be established as an advisory board  to,
within  the  Department, the Illinois Coal Development Board,
hereinafter in this Section  called  the  Board.   The  Board
shall   be  composed  of  the  following  13  voting  members
including: the Director  of  the  Department,  who  shall  be
Chairman  thereof;  the  Deputy  Director  of  the  Bureau of
Business Development within the Department  of  Commerce  and
Community  Affairs; the Director of Natural Resources or that
Director's designee; the Director of the Office of Mines  and
Minerals  within  the  Department  of  Natural  Resources;  4
members  of  the  General Assembly (one each appointed by the
President of the Senate,  the  Senate  Minority  Leader,  the
Speaker  of the House, and the House Minority Leader) the two
co-chairpersons of the Citizens Council on Energy  Resources,
created  by  Public Act 84-15; and 8 persons appointed by the
Governor,  with  the  advice  and  consent  of  the   Senate,
including  representatives  of  Illinois  industries that are
involved in the extraction, utilization or transportation  of
Illinois  coal,  persons  representing  financial  or banking
interests  in  the  State,   and   persons   experienced   in
international   business  and  economic  development.   These
members shall be chosen from persons  of  recognized  ability
and  experience  in  their designated field.  The 8 appointed
members appointed by the Governor shall serve for terms of  4
years,  unless  otherwise  provided  in this subsection.  The
initial terms of the original appointees shall expire on July
1, 1985, except that the Governor shall designate  3  of  the
original  appointees to serve initial terms that shall expire
on July 1, 1983.  The initial term of the member appointed by
the Governor to fill the office created after  July  1,  1985
shall  expire  on  July  1,  1989.   The initial terms of the
members appointed by the Governor to fill the offices created
by this amendatory Act of 1993 shall expire on July 1,  1995,
and  July  1,  1997,  as determined by the Governor. A member
appointed  by  a  Legislative  Leader  shall  serve  for  the
duration of the General Assembly  for  which  he  or  she  is
appointed,  so  long  as  the member remains a member of that
General Assembly.
    The Board shall meet at least annually or at the call  of
the  Chairman.    At  any  time the majority of the Board may
petition the Chairman for a meeting of the Board.  Nine Seven
members of the Board shall constitute a quorum.   Members  of
the  Board  shall  be  reimbursed  for  actual  and necessary
expenses incurred while performing their duties as members of
the Board from funds appropriated to the Department for  such
purpose.
    (b)  The    Board   shall   provide   advice   and   make
recommendations on have the following Department  powers  and
duties:
         (1)  To  develop  an annual agenda which may include
    but  is  not  limited  to  research   and   methodologies
    conducted  for  the purpose of increasing the utilization
    of Illinois' coal and other fossil fuel  resources,  with
    emphasis  on  high  sulfur  coal, in the following areas:
    coal extraction, preparation and  characterization;  coal
    technologies (combustion, gasification, liquefaction, and
    related   processes);  marketing;  public  awareness  and
    education, as those terms are used in the  Illinois  Coal
    Technology  Development  Assistance  Act; transportation;
    procurement  of  sites  and  issuance  of  permits;   and
    environmental impacts.
         (2)  To   support   and   coordinate  Illinois  coal
    research, and to approve  projects  consistent  with  the
    annual  agenda  and  budget  for  coal  research  and the
    purposes of this Act and to. The Board shall review  and,
    if  acceptable,  approve  the annual budget and operating
    plan submitted by the Department  for  administration  of
    the Board Board's projects and funds.
         (3)  To   promote   the  coordination  of  available
    research  information  on  the  production,  preparation,
    distribution and uses of Illinois coal.  The Board  shall
    advise  the  existing  research  institutions  within the
    State on areas where research may be necessary.
         (4)  To cooperate to  the  fullest  extent  possible
    with   State   and   federal  agencies  and  departments,
    independent organizations, and other  interested  groups,
    public   and  private,  for  the  purposes  of  promoting
    Illinois coal resources.
         (5)  To submit an annual report to the Governor  and
    the   General   Assembly   outlining   the  progress  and
    accomplishments made in the year, providing an accounting
    of funds received and disbursed, reviewing the status  of
    research   contracts,   and   furnishing  other  relevant
    information.
         (6)  To focus on existing coal research  efforts  in
    carrying  out  its  mission;.  The Board shall attempt to
    make use of existing research facilities in  Illinois  or
    other  institutions  carrying  out  research  on Illinois
    coal;. as far as practicable, to  the  Board  shall  make
    maximum  use  of the research facilities available at the
    Illinois State Geological Survey, the Coal Extraction and
    Utilization   Research   Center,   the   Illinois    Coal
    Development  Park  and  universities and colleges located
    within the State of Illinois; and  to.   Subject  to  the
    approval  of  the Department, and in conjunction with its
    statutory  responsibilities,  the  Board  may  create   a
    consortium  or  center  which  conducts,  coordinates and
    supports  coal  research  activities  in  the  State   of
    Illinois.   Programmatic  activities of such a consortium
    or center shall be subject to approval by the  Department
    Board  and  shall be consistent with the purposes of this
    Act.  The Department Board may authorize  expenditure  of
    funds  in  support of the administrative and programmatic
    operations of such a center or consortium consistent with
    its   statutory   authority.    Administrative    actions
    undertaken by or for such a center or consortium shall be
    subject to the approval of the Department.
         (7)  To make a reasonable attempt, before initiating
    any  research  under  this  Act,  to avoid duplication of
    effort and expense by coordinating the  research  efforts
    among  various  agencies,  departments,  universities  or
    organizations, as the case may be.
         (8)  To  adopt,  amend and repeal rules, regulations
    and bylaws governing the Board's  its  organization  and,
    the  conduct  of business, and the exercise of its powers
    and duties.
         (9)  To authorize the expenditure of monies from the
    Coal Technology Development Assistance Fund,  the  Public
    Utility  Fund  and  other  funds  in  the  State Treasury
    appropriated  to  the  Department,  consistent  with  the
    purposes of this Act.
         (10)  To seek, accept, and expend gifts or grants in
    any form, from  any  public  agency  or  from  any  other
    source.   Such  gifts  and grants may be held in trust by
    the Department and  expended  at  the  direction  of  the
    Department  Board and in the exercise of the Department's
    Board's  powers  and  performance  of  the   Department's
    Board's duties.
         (11)  To  publish, from time to time, the results of
    Illinois  coal  research  projects  funded  through   the
    Department Board.
         (12)  To  authorize  loans  from appropriations from
    the Build Illinois Bond Purposes Fund, the Build Illinois
    Bond Fund and the Illinois  Industrial  Coal  Utilization
    Fund.
         (13)  To  authorize  expenditures of monies for coal
    development projects under the authority of Section 13 of
    the General Obligation Bond Act.
    (c)  The  Board  shall  also  provide  advice  and   make
recommendations on have and exercise the following Department
powers and duties:
         (1)  To  create  and  maintain thorough, current and
    accurate records on all markets for and  actual  uses  of
    coal   mined  in  Illinois,  and  to  make  such  records
    available to the public upon request.
         (2)  To identify all current and anticipated  future
    technical,      economic,      institutional,     market,
    environmental, regulatory and other  impediments  to  the
    utilization of Illinois coal.
         (3)  To monitor and evaluate all proposals and plans
    of  public  utilities  related  to  compliance  with  the
    requirements  of  Title  IV  of the federal Clean Air Act
    Amendments of 1990, or with any  other  law  which  might
    affect  the use of Illinois coal, for the purposes of (i)
    determining the effects of such proposals or plans on the
    use of Illinois coal, and  (ii)  identifying  alternative
    plans or actions which would maintain or increase the use
    of Illinois coal.
         (4)  To  develop  strategies and to propose policies
    to promote environmentally responsible uses  of  Illinois
    coal  for  meeting electric power supply requirements and
    for other purposes.
         (5)  (Blank). To issue a report to the Governor  and
    the  General  Assembly by October 1, 1991, and by March 1
    of  each  year  thereafter,  describing   all   findings,
    conclusions and recommendations required by and developed
    pursuant  to  this  subsection;  provided,  however, that
    interim reports may be issued whenever in the opinion  of
    the Board there may be a need to do so.
(Source: P.A. 88-391; 89-445, eff. 2-7-96.)

    (20 ILCS 1105/9) (from Ch. 96 1/2, par. 7409)
    Sec.   9.    The  Illinois  Industrial  Coal  Utilization
Program.   The  Department  shall  administer  the   Illinois
Industrial  Coal  Utilization  Program,  referred  to  as the
"program".  The purpose of the program  is  to  increase  the
environmentally  sound  use  of  Illinois  coal  by qualified
applicants. To that end, the Department, with the  assistance
of  the  Board,  shall  operate  a  revolving loan program to
partially  finance  new  coal  burning  facilities  sited  in
Illinois  or  conversion  of  existing  boilers  located   in
Illinois  to  coal  use,  referred  to  as  "industrial  coal
projects".
    The   Department,  with  the  advice  and  recommendation
subject to the approval  of  the  Illinois  Coal  Development
Board, shall make below market rate loans available to fund a
portion  of  each  qualifying  industrial  coal project.  The
applicant  must  demonstrate  that  it  is  able  to   obtain
additional financing from other sources to fund the remainder
of  the  project and that the project would not occur without
the Department's participation.  The Board and The Department
may, in part, rely on the financial evaluation  completed  by
the  provider  of  the additional funding, as well as its own
evaluation.
    The Department shall have the following powers:
    (1)  To accept grants, loans, or appropriations from  the
federal   government   or   the   State,  or  any  agency  or
instrumentality of either, to be used for any purposes of the
program,  including  operating  and  administrative  expenses
associated with the program and the making of direct loans of
those funds with respect to  projects.   The  Department  may
enter  into  any agreement with the federal government or the
State,  or  any  agency  or  instrumentality  of  either,  in
connection with those grants, loans, or appropriations.
    (2)  To make loans from  appropriations  from  the  Build
Illinois Purposes Fund or the Build Illinois Bond Fund and to
accept   guarantees  from  individuals,  partnerships,  joint
ventures, corporations, and governmental agencies.  Any  loan
or  series    of  loans  shall be limited to an amount not to
exceed the lesser of $4,000,000 or 60% of the  total  project
cost.
    (3)  To establish interest rates, terms of repayment, and
other  terms  and  conditions regarding loans made under this
Act  as  the  Department   shall   determine   necessary   or
appropriate  to protect the public interest and carry out the
purposes of this Act.
    (4)  To receive, evaluate, and establish  time  schedules
for  the  determination  of,  and  determine applications for
financial aid for the development, construction, acquisition,
or improvement  of,  an  industrial  coal  project  from  any
qualifying  applicant  and  negotiate terms and conditions on
which  the  coal  project  may  be  developed,   constructed,
improved, owned, or used by or leased to the applicant or its
successor  in  interest.   The Department shall prescribe the
form of application.  The form shall contain,  without  being
limited to, the following:
         (i)  a  general  description  of the industrial coal
    project and of the developer, user, or tenant  for  which
    the industrial project is to be established;
         (ii)  plans,  equipment  lists,  and other documents
    that may be required to show  the  type,  structure,  and
    general character of the project;
         (iii)  a  general description of the expected use of
    Illinois coal resulting from the project;
         (iv)  cost estimates  of  developing,  constructing,
    acquiring, or improving the industrial project;
         (v)  a general description of the financing plan for
    the industrial coal project; and
         (vi)  a  general  description and statement of value
    of any property and its improvements provided  or  to  be
    provided for the project by other sources.
    Nothing  in  this Section shall be deemed to preclude the
Department, before the filing of any formal application, from
conducting preliminary discussions  and  investigations  with
respect   to   the   subject   matter   of   any  prospective
applications.
(Source: P.A. 87-14.)

    Section 10.  The General Obligation Bond Act  is  amended
by changing Section 13 as follows:

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

    Section 15.  The  Illinois  Coal  Technology  Development
Assistance  Act  is  amended  by changing Sections 4 and 6 as
follows:

    (30 ILCS 730/4) (from Ch. 96 1/2, par. 8204)
    Sec. 4.  Expenditures from  Coal  Technology  Development
Assistance Fund.
    (a)  The  contents  of  the  Coal  Technology Development
Assistance Fund may be expended, subject to appropriation  by
the  General  Assembly,  in such amounts and at such times as
the Department, with the advice and  recommendation  approval
of  the  Board,  may  deem  necessary  or  desirable  for the
purposes of this Act.
    (b)  The  Department  shall  develop   a   written   plan
containing measurable 3-year and 10-year goals and objectives
in   regard   to  the  funding  of  coal  research  and  coal
demonstration and commercialization  projects,  and  programs
designed  to  preserve and enhance markets for Illinois coal.
In developing these  goals  and  objectives,  the  Department
shall  consider and determine the appropriate balance for the
achievement of near-term and long-term goals  and  objectives
and   of   ensuring  the  timely  commercial  application  of
cost-effective technologies or energy and chemical production
processes or systems utilizing coal.   The  Department  shall
develop  the  initial  goals  and  objectives  no  later than
December 1, 1993, and develop revised goals and objectives no
later than July 1 annually thereafter.
    (c)  In addition to any other permitted use of moneys  in
the  Fund,  and notwithstanding any restriction on the use of
the  Fund,  moneys  in  the   Coal   Technology   Development
Assistance  Fund  may  be  transferred to the General Revenue
Fund as authorized by  this  amendatory  Act  of  1992.   The
General Assembly finds that an excess of moneys exists in the
Fund.   On  February  1,  1992,  the  Comptroller shall order
transferred and the Treasurer  shall  transfer  $500,000  (or
such  lesser  amount  as  may  be  on deposit in the Fund and
unexpended and unobligated on that date) from the Fund to the
General Revenue Fund.
(Source: P.A. 88-391; 89-499, eff. 6-28-96.)

    (30 ILCS 730/6) (from Ch. 96 1/2, par. 8206)
    Sec.  6.   Coal   demonstration   and   commercialization
project.  No  expenditure  from  the Fund may be made for any
coal demonstration and commercialization project until it has
been  approved  by  the  Department  with  the   advice   and
recommendation of the Board.
    A specific proposal shall be deemed approved if the Board
fails to act on it within the 45-day period.
    All  coal  research  projects  shall  be submitted to the
Department,  with  the  advice  and  recommendation  of   the
Illinois  Coal Development Board, for approval as provided in
Section 8 of the Energy Conservation and Coal Development Act
"An Act in relation  to  natural  resources,  research,  data
collection  and  environmental  studies",  approved  July 14,
1978, as amended.
(Source: P.A. 84-1070.)

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