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SB1814 Engrossed |
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LRB094 09233 JAM 39467 b |
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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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SB1814 Engrossed |
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LRB094 09233 JAM 39467 b |
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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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LRB094 09233 JAM 39467 b |
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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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LRB094 09233 JAM 39467 b |
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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.
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