HB3042 100TH GENERAL ASSEMBLY

LRB100 11071 RJF 21316 b

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

AN ACT concerning regulation.

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

ARTICLE 1. SHORT TITLE.

Section 1-1. Short title. This Act may be cited as the Energy and Environmental Security Act.

ARTICLE 5. AMENDATORY PROVISIONS

Section 5-5. The Energy Conservation and Coal Development Act is amended by changing Section 1 and by adding Sections 17 and 20 as follows:

(20 ILCS 1105/1) (from Ch. 96 1/2, par. 7401)

Sec. 1. Definitions; transfer of duties.

(a) For the purposes of this Act, unless the context otherwise requires:

"Department" means the Department of Commerce and Economic Opportunity.

"Director" means the Director of Commerce and Economic Opportunity.

"Qualified Clean Coal Facility" means an electric generating facility which uses United States high volatile rank bituminous coal with an emissions factor of less than 210 pounds of carbon dioxide per million BTU as its primary fuel source.

(b) As provided in Section 80-20 of the Department of Natural Resources Act, the Department of Commerce and Community Affairs (now Department of Commerce and Economic Opportunity) shall assume the rights, powers, and duties of the former Department of Energy and Natural Resources under this Act, except as those rights, powers, and duties are otherwise allocated or transferred by law.

(Source: P.A. 94-793, eff. 5-19-06.)

(20 ILCS 1105/17 new)

Sec. 17. Illinois Qualified Clean Coal Technology Grant Program.

(a) Subject to appropriation, the Department shall provide grants for the purpose of funding or financing capital projects, operating activities, contractual expenses and fees, and other expenses that will allow the grant recipient to (i) meet the qualifications of a qualified clean coal facility, as defined in this Act, (ii) operate the electric generating unit as a qualified clean coal facility while complying with State and federal emissions requirements applicable to the grant recipient's entire electric generating fleet, and (iii) mitigate the environmental impacts of the operation of coal-fueled electric generation units in this State. For purposes of this Section, "contractual expenses and fees" shall include, without limitation, (i) contractual termination fees paid by the owner of a coal-fueled electric generation facility to terminate one or more contracts for the purchase or delivery of coal that is to be replaced by United States high volatile rank bituminous coal with an emissions factor of less than 210 pounds of carbon dioxide per million btu and (ii) payments made by the owner of a coal-fueled electric generation facility, pursuant to contract, to the owner or operator of transmission facilities as the consideration for implementing transmission system efficiency improvements that will reduce congestion and increase capacity of generating units converted to burn coal meeting specified criteria. All grants shall be provided pursuant to contracts between the Department and an eligible recipient in accordance with this Section. Each grant must be provided for one or more specific capital projects, operating activities, contractual expenses and fees, or other expenses that have the specific objective or purpose of increasing the use of, or conversion to, high volatile rank bituminous coal with an emissions factor of less than 210 pounds of carbon dioxide per million btu and mitigating the environmental impacts of operating the electric generating unit or units. Grants may be provided for capital projects, operating activities, contractual expenses and fees, and other expenses incurred or to be incurred for the purpose of increasing the use of, or conversion to, high volatile rank bituminous coal with an emissions factor of less than 210 pounds of carbon dioxide per million btu and having the following purposes or any other purpose that is consistent with the objectives of this Act:

(1) installation or modification of emissions controls or other necessary equipment and materials on one or more coal-fueled electric generating units;

(2) efficiency improvements such as reductions in heat rate at one or more coal-fueled electric generating units that reduce the amount of coal that must be burned to produce a megawatthour of electricity;

(3) modifications or conversion of an existing coal-fueled electric generating unit to a coal-fueled electric generating unit capable of using high volatile rank bituminous coal with an emissions factor of less than 210 pounds of carbon dioxide per million btu while meeting applicable environmental requirements;

(4) installation of or modifications to equipment at other electric generating units in the grant recipient's generating fleet that are necessary to enable the grant recipient to use high volatile rank bituminous coal with an emissions factor of less than 210 pounds of carbon dioxide per million btu at one or more electric generating units while complying with applicable State and federal emissions requirements on a fleet-wide basis;

(5) transmission system efficiency improvements to reduce congestion and increase capacity of units converted to burn coal meeting specified criteria; and

(6) funding the costs of operating activities, contractual expenses and fees, and other expenses incurred to enable the increased use of, or conversion to, high volatile rank bituminous coal with an emissions factor of less than 210 pounds of carbon dioxide per million btu.

(b) Grant funds awarded may be paid to the recipient on a one-time basis or over a period of up to 5 years in accordance with the terms of the contract between the Department and the recipient. No grant amount shall exceed $500,000,000 in total over the term of the grant.

(c) The Department may provide grants based on the amount of funds available in the Clean Coal Technology Development and Utilization Fund; provided that at no time may payments be made to any recipient in excess of the total amount of funds available in the Clean Coal Technology Development and Utilization Fund.

(d) The grant contract between the Department and the recipient shall include, at a minimum, the following terms:

(1) the name and location of the coal-fueled electric generating unit or units at or for which the capital project, operating activity, or expense for which the grant is being provided will be implemented or incurred;

(2) the total amount of the grant and the timing of the release of the grant funds to the recipient, such as in a single payment or in a series of periodic payments over a period of up to 5 years;

(3) a detailed description of the capital project, operating activity, contractual expense or fee, or other expense for which the grant is being provided, including a description of the manner in which the capital project, operating activity, or expense will enable or facilitate an increase in the use of, or conversion to, high volatile rank bituminous coal with an emissions factor of less than 210 pounds of carbon dioxide per million btu and mitigate environmental impacts of the operation of the coal-fueled electric generating unit;

(4) a detailed schedule for execution, implementation, and completion of the capital project or operating activity;

(5) quantifiable performance objectives or outcomes of the capital project, operating activity, contractual expense or fee, or other expense with respect to the increased use of, or conversion to, high volatile rank bituminous coal with an emissions factor of less than 210 pounds of carbon dioxide per million btu and mitigation of environmental impacts of operation of the generating unit or units, including a description of the manner in which achievement of the performance objectives or outcomes will be measured and will be reported by the recipient to the Department;

(6) a description of procedures by which the recipient will (i) maintain accounts and records of expenditures of grant funds, which accounts and records shall be made available for inspection and audit by the Department on reasonable notice, and (ii) provide periodic reports to the Department on the expenditure of grant funds and on progress in implementing or completing the capital project or operating activity;

(7) a provision specifying that the grant amount will not be increased if the cost of the capital project or operating activity or the amount of the contractual expenses and fees or other expenses exceeds the estimated cost stated in the contract;

(8) provisions specifying that if the performance objectives or outcomes for the capital project, operating activity, contractual expenses and fees or other expenses as specified in the contract are not achieved based on the measurement methods specified in the contract, a portion of the grant amount will be repaid by the recipient to the Department in accordance with measures and procedures specified in the contract; and

(9) such other usual and customary provisions for the administration and monitoring of grants and grant recipients as the Department may by rule adopt.

(20 ILCS 1105/20 new)

Sec. 20. Clean Coal Technology Development and Utilization Fund.

(a) The Clean Coal Technology Development and Utilization Fund is created as a special fund in the State treasury.

(b) The Clean Coal Technology Development and Utilization Fund shall be administered by the Department to provide grants under Section 17 of this Act.

Section 5-25. The State Finance Act is amended by adding Section 5.878 as follows:

(30 ILCS 105/5.878 new)

Sec. 5.878. The Clean Coal Technology Development and Utilization Fund.

ARTICLE 99. EFFECTIVE DATE.

Section 99-999. Effective date. This Act takes effect upon becoming law.