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Environment & Energy Committee
Filed: 4/18/2006
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| AMENDMENT TO SENATE BILL 619
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| AMENDMENT NO. ______. Amend Senate Bill 619 by replacing |
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| everything after the enacting clause with the following:
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| "Section 5. The Department of Commerce and Economic |
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| Opportunity Law of the Civil Administrative Code of Illinois is |
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| amended by changing Section 605-332 as follows:
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| (20 ILCS 605/605-332)
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| Sec. 605-332. Financial assistance to energy generation |
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| facilities.
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| (a) As used in this Section:
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| "New electric generating facility" means a |
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| newly-constructed electric
generation plant or a newly |
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| constructed generation capacity expansion at an
existing |
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| facility, including the transmission lines and associated |
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| equipment
that transfers electricity from points of supply to |
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| points of delivery, and for
which foundation construction |
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| commenced not sooner than July 1, 2001, which is
designed to |
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| provide baseload electric generation operating on a continuous
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| basis throughout the year and:
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| (1) has an aggregate rated generating capacity
of at
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| least 400 megawatts for all new units at one site, uses |
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| coal or gases derived
from coal as its primary fuel
source, |
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| and supports the creation of at least 150 new Illinois coal |
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| mining
jobs; or
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| (2) is funded through a federal Department of Energy |
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| grant before December 31, 2007
July 1, 2006 and supports |
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| the
creation of
Illinois
coal-mining jobs; or
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| (3) uses coal gasification or integrated |
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| gasification-combined cycle
units that generate |
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| electricity or chemicals, or both, and supports the
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| creation of
Illinois
coal-mining jobs.
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| "New gasification facility" means a newly constructed coal |
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| gasification facility that generates chemical feedstocks or |
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| transportation fuels derived from coal (which may include, but |
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| are not limited to, methane, methanol, and nitrogen |
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| fertilizer), that supports the creation or retention of |
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| Illinois coal-mining jobs, and that qualifies for financial |
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| assistance from the Department before December 31, 2006. A new |
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| gasification facility does not include a pilot project located |
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| within Jefferson County or within a county adjacent to |
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| Jefferson County for synthetic natural gas from coal.
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| "New facility" means a new electric generating facility or |
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| a new gasification facility. A new facility does not include a |
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| pilot project located within Jefferson County or within a |
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| county adjacent to Jefferson County for synthetic natural gas |
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| from coal.
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| "Eligible business" means an entity that proposes to |
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| construct a new facility and that has applied to the Department |
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| to receive financial
assistance pursuant to this Section.
With |
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| respect to use and occupation taxes, wherever there is a |
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| reference to
taxes, that reference means only those taxes paid |
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| on Illinois-mined coal used
in
a new facility.
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| "Department" means the Illinois Department of Commerce and
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| Economic Opportunity.
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| (b) The Department is authorized to
provide financial |
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| assistance to eligible businesses for new
facilities from funds |
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| appropriated by the General Assembly as further provided
in |
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| this Section.
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| An eligible business seeking qualification for financial |
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| assistance for
a new facility, for purposes of this Section |
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| only, shall
apply to the Department in the manner specified by |
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| the Department. Any
projections provided by an eligible |
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| business as part of the application shall
be independently |
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| verified in a manner as set forth by the Department. An
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| application shall include, but not
be limited to:
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| (1) the projected or actual completion date of the new |
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| facility
for which financial assistance is sought;
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| (2) copies of documentation deemed
acceptable by the |
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| Department establishing either (i) the total State
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| occupation
and use taxes paid on Illinois-mined coal used |
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| at the new facility for a minimum of 4 preceding calendar |
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| quarters or (ii)
the projected amount of State occupation |
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| and use taxes paid on Illinois-mined
coal used at the new |
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| facility in 4 calendar year quarters
after completion of |
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| the new facility.
Bond proceeds subject to this Section |
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| shall not be allocated to an
eligible business until the |
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| eligible business has demonstrated the revenue
stream |
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| sufficient to service the debt on the bonds; and
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| (3) the actual or projected amount of capital |
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| investment by the
eligible business
in the new facility.
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| The Department shall determine the maximum amount of |
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| financial
assistance for eligible businesses in accordance |
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| with this paragraph. The
Department shall not provide financial |
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| assistance from general obligation bond
funds to any eligible |
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| business
unless it receives a written certification from the |
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| Director of the
Bureau of
the Budget
(now Governor's Office of |
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| Management and Budget)
that 80% of the State occupation and use |
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| tax receipts for a minimum
of the
preceding 4 calendar quarters |
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| for all eligible businesses or as included in
projections on |
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| approved applications by eligible businesses equal or exceed
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| 110% of the maximum annual debt service required with respect |
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| to general
obligation bonds issued for that purpose. The |
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| Department may provide
financial assistance not to exceed the |
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| amount of State general obligation
debt calculated as above, |
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| the amount of actual or projected capital
investment in the |
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| facility, or $100,000,000, whichever is less.
Financial |
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| assistance received pursuant to this Section may be used
for |
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| capital facilities consisting of buildings, structures, |
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| durable equipment,
and land at the new facility. Subject to the |
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| provisions
of the agreement covering the financial assistance, |
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| a portion of the financial
assistance may be required to be |
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| repaid to the State if certain conditions for
the governmental |
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| purpose of the assistance were not met.
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| An eligible business shall file a monthly report with the
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| Illinois Department of Revenue stating the amount of |
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| Illinois-mined coal
purchased during
the previous month for use |
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| in the new facility, the
purchase price of that coal, the |
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| amount of State
occupation and use taxes paid on that purchase |
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| to the seller of the
Illinois-mined coal, and
such other
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| information as that Department may reasonably require. In sales |
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| of
Illinois-mined coal between related parties, the purchase |
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| price of the coal
must have been determined in an arms-length |
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| transaction. The report shall be
filed with the Illinois |
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| Department of Revenue on or before the 20th day of
each month |
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| on a form provided by that Department. However, no report
need |
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| be filed by an eligible business in a month when it made
no |
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| reportable purchases of coal in the previous month.
The |
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| Illinois Department of Revenue shall provide a summary of such |
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| reports to
the
Governor's Office of Management and Budget.
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| Upon granting financial assistance to an eligible |
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| business, the Department
shall certify the name of the eligible |
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| business to the Illinois Department of
Revenue. Beginning with |
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| the receipt of the first report of State occupation
and use |
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| taxes paid by an
eligible business and continuing for a 25-year |
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| period, the Illinois Department
of Revenue shall each month pay |
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| into the Energy Infrastructure Fund 80% of the
net revenue |