94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB1814


 
Introduced 2/25/2005, by Sen. Gary Forby
 
SYNOPSIS AS INTRODUCED:
 		















20 ILCS 605/605-332








    Amends the Department of Commerce and Economic Development Opportunity Law. Makes changes with respect to financial assistance to eligible businesses for new electric generating facilities. Provides that one of the qualifying factors in the definition of a "new electric generating facility" is being funded through a federal Department of Energy grant before July 1, 2007 (now, July 1, 2005). Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB1814

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    AN ACT concerning finance.

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


 
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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 (i) funded through a federal Department of 
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    Energy grant before July 1, 2007
2005,  and (ii) uses coal 
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    gasification or integrated gasification-combined cycle

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    units that generate electricity or chemicals, or both, and 
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    that supports the
creation of
Illinois
coal-mining jobs.

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    "Eligible business" means an entity that proposes to 
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construct a new electric
generating facility and that has 
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applied to the Department to receive financial
assistance 
 


 






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pursuant to this Section.
With respect to use and occupation 
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taxes, wherever there is a reference to
taxes, that reference 
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means only those taxes paid on Illinois-mined coal used
in
a 
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new electric generating 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 electric generating

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facilities from funds appropriated by the General Assembly as 
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further provided
in this Section.

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    An eligible business seeking qualification for financial 
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assistance for
a new electric generating facility, for purposes 
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of this Section only, shall
apply to the Department in the 
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manner specified by the Department. Any
projections provided by 
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an eligible business as part of the application shall
be 
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independently verified in a manner as set forth by the 
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Department. An
application shall include, but not
be limited 
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to:


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        (1) the projected or actual completion date of the new 
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    electric
generating facility
for which financial 
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    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 electric
generating facility for a minimum of 4 
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    preceding calendar quarters or (ii)
the projected amount of 
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    State occupation and use taxes paid on Illinois-mined
coal 
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    used at the new electric generating facility in 4 calendar 
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    year quarters
after completion of the new electric 
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    generating 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 electric 
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    generating 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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energy
generation facility, or $100,000,000, whichever is 
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less.
Financial assistance received pursuant to this Section 
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may be used
for capital facilities consisting of buildings, 
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structures, durable equipment,
and land at the new electric 
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generating facility. Subject to the provisions
of the agreement 
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covering the financial assistance, a portion of the financial

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assistance may be required to be repaid to the State if certain 
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conditions for
the governmental purpose of the assistance were 
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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 electric generating facility, the
purchase price of 
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that coal, the amount of State
occupation and use taxes paid on 
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that purchase to the seller of the
Illinois-mined coal, and

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such other
information as that Department may reasonably 
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require.  In sales of
Illinois-mined coal between related 
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parties, the purchase price of the coal
must have been 
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determined in an arms-length transaction.  The report shall be

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filed with the Illinois Department of Revenue on or before the 
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20th day of
each month on a form provided by that Department.  
 


 






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However, no report
need be filed by an eligible business in a 
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month when it made
no reportable purchases of coal in the 
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previous month.
The Illinois Department of Revenue shall 
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provide a summary of such reports to
the
Governor's Office of 
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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 
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realized from the 6.25% general rate on the selling price of

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Illinois-mined coal that was sold to an eligible business.

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(Source: P.A. 92-12, eff. 7-1-01; 93-167, eff. 7-10-03; 
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93-1064, eff. 1-13-05.)

 

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