100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2578

 

Introduced , by Rep. Brandon W. Phelps

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3501/825-65
20 ILCS 3855/1-10

    Amends the Illinois Finance Authority Act. In the definition of "Energy Efficiency Project", includes measures that decrease the heat rate in the generation of electricity. Amends the Illinois Power Agency Act. In the definition of "energy efficiency", includes measures that decrease the heat rate in the generation of electricity.


LRB100 09769 RJF 19938 b

 

 

A BILL FOR

 

HB2578LRB100 09769 RJF 19938 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Finance Authority Act is amended by
5changing Section 825-65 as follows:
 
6    (20 ILCS 3501/825-65)
7    Sec. 825-65. Clean Coal, Coal, Energy Efficiency, and
8Renewable Energy Project Financing.
9    (a) Findings and declaration of policy.
10        (i) It is hereby found and declared that Illinois has
11    abundant coal resources and, in some areas of Illinois, the
12    demand for power exceeds the generating capacity.
13    Incentives to encourage the construction of coal-fueled
14    electric generating plants in Illinois to ensure power
15    generating capacity into the future and to advance clean
16    coal technology and the use of Illinois coal are in the
17    best interests of all of the citizens of Illinois.
18        (ii) It is further found and declared that Illinois has
19    abundant potential and resources to develop renewable
20    energy resource projects and that there are many
21    opportunities to invest in cost-effective energy
22    efficiency projects throughout the State. The development
23    of those projects will create jobs and investment as well

 

 

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1    as decrease environmental impacts and promote energy
2    independence in Illinois. Accordingly, the development of
3    those projects is in the best interests of all of the
4    citizens of Illinois.
5        (iii) The Authority is authorized to issue bonds to
6    help finance Clean Coal, Coal, Energy Efficiency, and
7    Renewable Energy projects pursuant to this Section.
8    (b) Definitions.
9        (i) "Clean Coal Project" means (A) "clean coal
10    facility", as defined in Section 1-10 of the Illinois Power
11    Agency Act; (B) "clean coal SNG facility", as defined in
12    Section 1-10 of the Illinois Power Agency Act; (C)
13    transmission lines and associated equipment that transfer
14    electricity from points of supply to points of delivery for
15    projects described in this subsection (b); (D) pipelines or
16    other methods to transfer carbon dioxide from the point of
17    production to the point of storage or sequestration for
18    projects described in this subsection (b); or (E) projects
19    to provide carbon abatement technology for existing
20    generating facilities.
21        (ii) "Coal Project" means new electric generating
22    facilities or new gasification facilities, as defined in
23    Section 605-332 of the Department of Commerce and Economic
24    Opportunity Law of the Civil Administrative Code of
25    Illinois, which may include mine-mouth power plants,
26    projects that employ the use of clean coal technology,

 

 

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1    projects to provide scrubber technology for existing
2    energy generating plants, or projects to provide electric
3    transmission facilities or new gasification facilities.
4        (iii) "Energy Efficiency Project" means measures that
5    reduce the amount of electricity or natural gas required to
6    achieve a given end use, consistent with Section 1-10 of
7    the Illinois Power Agency Act. "Energy Efficiency Project"
8    also includes measures that reduce the total Btus of
9    electricity and natural gas needed to meet the end use or
10    uses and measures that decrease the heat rate in the
11    generation of electricity consistent with Section 1-10 of
12    the Illinois Power Agency Act.
13        (iv) "Renewable Energy Project" means (A) a project
14    that uses renewable energy resources, as defined in Section
15    1-10 of the Illinois Power Agency Act; (B) a project that
16    uses environmentally preferable technologies and practices
17    that result in improvements to the production of renewable
18    fuels, including but not limited to, cellulosic
19    conversion, water and energy conservation, fractionation,
20    alternative feedstocks, or reduced greenhouse green house
21    gas emissions; (C) transmission lines and associated
22    equipment that transfer electricity from points of supply
23    to points of delivery for projects described in this
24    subsection (b); or (D) projects that use technology for the
25    storage of renewable energy, including, without
26    limitation, the use of battery or electrochemical storage

 

 

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1    technology for mobile or stationary applications.
2    (c) Creation of reserve funds. The Authority may establish
3and maintain one or more reserve funds to enhance bonds issued
4by the Authority for a Clean Coal Project, a Coal Project, an
5Energy Efficiency Project, or a Renewable Energy Project. There
6may be one or more accounts in these reserve funds in which
7there may be deposited:
8        (1) any proceeds of the bonds issued by the Authority
9    required to be deposited therein by the terms of any
10    contract between the Authority and its bondholders or any
11    resolution of the Authority;
12        (2) any other moneys or funds of the Authority that it
13    may determine to deposit therein from any other source; and
14        (3) any other moneys or funds made available to the
15    Authority. Subject to the terms of any pledge to the owners
16    of any bonds, moneys in any reserve fund may be held and
17    applied to the payment of principal, premium, if any, and
18    interest of such bonds.
19    (d) Powers and duties. The Authority has the power:
20        (1) To issue bonds in one or more series pursuant to
21    one or more resolutions of the Authority for any Clean Coal
22    Project, Coal Project, Energy Efficiency Project, or
23    Renewable Energy Project authorized under this Section,
24    within the authorization set forth in subsection (e).
25        (2) To provide for the funding of any reserves or other
26    funds or accounts deemed necessary by the Authority in

 

 

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1    connection with any bonds issued by the Authority.
2        (3) To pledge any funds of the Authority or funds made
3    available to the Authority that may be applied to such
4    purpose as security for any bonds or any guarantees,
5    letters of credit, insurance contracts or similar credit
6    support or liquidity instruments securing the bonds.
7        (4) To enter into agreements or contracts with third
8    parties, whether public or private, including, without
9    limitation, the United States of America, the State or any
10    department or agency thereof, to obtain any
11    appropriations, grants, loans or guarantees that are
12    deemed necessary or desirable by the Authority. Any such
13    guarantee, agreement or contract may contain terms and
14    provisions necessary or desirable in connection with the
15    program, subject to the requirements established by the
16    Act.
17        (5) To exercise such other powers as are necessary or
18    incidental to the foregoing.
19    (e) Clean Coal Project, Coal Project, Energy Efficiency
20Project, and Renewable Energy Project bond authorization and
21financing limits. In addition to any other bonds authorized to
22be issued under Sections 801-40(w), 825-60, 830-25 and 845-5,
23the Authority may have outstanding, at any time, bonds for the
24purpose enumerated in this Section 825-65 in an aggregate
25principal amount that shall not exceed $3,000,000,000, subject
26to the following limitations: (i) up to $300,000,000 may be

 

 

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1issued to finance projects, as described in clause (C) of
2subsection (b)(i) and clause (C) of subsection (b)(iv) of this
3Section 825-65; (ii) up to $500,000,000 may be issued to
4finance projects, as described in clauses (D) and (E) of
5subsection (b)(i) of this Section 825-65; (iii) up to
6$2,000,000,000 may be issued to finance Clean Coal Projects, as
7described in clauses (A) and (B) of subsection (b)(i) of this
8Section 825-65 and Coal Projects, as described in subsection
9(b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000
10may be issued to finance Energy Efficiency Projects, as
11described in subsection (b)(iii) of this Section 825-65 and
12Renewable Energy Projects, as described in clauses (A), (B),
13and (D) of subsection (b)(iii) of this Section 825-65. An
14application for a loan financed from bond proceeds from a
15borrower or its affiliates for a Clean Coal Project, a Coal
16Project, Energy Efficiency Project, or a Renewable Energy
17Project may not be approved by the Authority for an amount in
18excess of $450,000,000 for any borrower or its affiliates. A
19Clean Coal Project or Coal Project must be located within the
20State. An Energy Efficiency Project may be located within the
21State or outside the State, provided that, if the Energy
22Efficiency Project is located outside of the State, it must be
23owned, operated, leased, or managed by an entity located within
24the State or any entity affiliated with an entity located
25within the State. These bonds shall not constitute an
26indebtedness or obligation of the State of Illinois and it

 

 

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1shall be plainly stated on the face of each bond that it does
2not constitute an indebtedness or obligation of the State of
3Illinois, but is payable solely from the revenues, income or
4other assets of the Authority pledged therefor.
5    (f) The bonding authority granted under this Section is in
6addition to and not limited by the provisions of Section 845-5.
7(Source: P.A. 98-90, eff. 7-15-13; revised 9-8-16.)
 
8    Section 10. The Illinois Power Agency Act is amended by
9changing Section 1-10 as follows:
 
10    (20 ILCS 3855/1-10)
11    (Text of Section before amendment by P.A. 99-906)
12    Sec. 1-10. Definitions.
13    "Agency" means the Illinois Power Agency.
14    "Agency loan agreement" means any agreement pursuant to
15which the Illinois Finance Authority agrees to loan the
16proceeds of revenue bonds issued with respect to a project to
17the Agency upon terms providing for loan repayment installments
18at least sufficient to pay when due all principal of, interest
19and premium, if any, on those revenue bonds, and providing for
20maintenance, insurance, and other matters in respect of the
21project.
22    "Authority" means the Illinois Finance Authority.
23    "Clean coal facility" means an electric generating
24facility that uses primarily coal as a feedstock and that

 

 

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1captures and sequesters carbon dioxide emissions at the
2following levels: at least 50% of the total carbon dioxide
3emissions that the facility would otherwise emit if, at the
4time construction commences, the facility is scheduled to
5commence operation before 2016, at least 70% of the total
6carbon dioxide emissions that the facility would otherwise emit
7if, at the time construction commences, the facility is
8scheduled to commence operation during 2016 or 2017, and at
9least 90% of the total carbon dioxide emissions that the
10facility would otherwise emit if, at the time construction
11commences, the facility is scheduled to commence operation
12after 2017. The power block of the clean coal facility shall
13not exceed allowable emission rates for sulfur dioxide,
14nitrogen oxides, carbon monoxide, particulates and mercury for
15a natural gas-fired combined-cycle facility the same size as
16and in the same location as the clean coal facility at the time
17the clean coal facility obtains an approved air permit. All
18coal used by a clean coal facility shall have high volatile
19bituminous rank and greater than 1.7 pounds of sulfur per
20million btu content, unless the clean coal facility does not
21use gasification technology and was operating as a conventional
22coal-fired electric generating facility on June 1, 2009 (the
23effective date of Public Act 95-1027).
24    "Clean coal SNG brownfield facility" means a facility that
25(1) has commenced construction by July 1, 2015 on an urban
26brownfield site in a municipality with at least 1,000,000

 

 

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1residents; (2) uses a gasification process to produce
2substitute natural gas; (3) uses coal as at least 50% of the
3total feedstock over the term of any sourcing agreement with a
4utility and the remainder of the feedstock may be either
5petroleum coke or coal, with all such coal having a high
6bituminous rank and greater than 1.7 pounds of sulfur per
7million Btu content unless the facility reasonably determines
8that it is necessary to use additional petroleum coke to
9deliver additional consumer savings, in which case the facility
10shall use coal for at least 35% of the total feedstock over the
11term of any sourcing agreement; and (4) captures and sequesters
12at least 85% of the total carbon dioxide emissions that the
13facility would otherwise emit.
14    "Clean coal SNG facility" means a facility that uses a
15gasification process to produce substitute natural gas, that
16sequesters at least 90% of the total carbon dioxide emissions
17that the facility would otherwise emit, that uses at least 90%
18coal as a feedstock, with all such coal having a high
19bituminous rank and greater than 1.7 pounds of sulfur per
20million btu content, and that has a valid and effective permit
21to construct emission sources and air pollution control
22equipment and approval with respect to the federal regulations
23for Prevention of Significant Deterioration of Air Quality
24(PSD) for the plant pursuant to the federal Clean Air Act;
25provided, however, a clean coal SNG brownfield facility shall
26not be a clean coal SNG facility.

 

 

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1    "Commission" means the Illinois Commerce Commission.
2    "Costs incurred in connection with the development and
3construction of a facility" means:
4        (1) the cost of acquisition of all real property,
5    fixtures, and improvements in connection therewith and
6    equipment, personal property, and other property, rights,
7    and easements acquired that are deemed necessary for the
8    operation and maintenance of the facility;
9        (2) financing costs with respect to bonds, notes, and
10    other evidences of indebtedness of the Agency;
11        (3) all origination, commitment, utilization,
12    facility, placement, underwriting, syndication, credit
13    enhancement, and rating agency fees;
14        (4) engineering, design, procurement, consulting,
15    legal, accounting, title insurance, survey, appraisal,
16    escrow, trustee, collateral agency, interest rate hedging,
17    interest rate swap, capitalized interest, contingency, as
18    required by lenders, and other financing costs, and other
19    expenses for professional services; and
20        (5) the costs of plans, specifications, site study and
21    investigation, installation, surveys, other Agency costs
22    and estimates of costs, and other expenses necessary or
23    incidental to determining the feasibility of any project,
24    together with such other expenses as may be necessary or
25    incidental to the financing, insuring, acquisition, and
26    construction of a specific project and starting up,

 

 

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1    commissioning, and placing that project in operation.
2    "Department" means the Department of Commerce and Economic
3Opportunity.
4    "Director" means the Director of the Illinois Power Agency.
5    "Demand-response" means measures that decrease peak
6electricity demand or shift demand from peak to off-peak
7periods.
8    "Distributed renewable energy generation device" means a
9device that is:
10        (1) powered by wind, solar thermal energy,
11    photovoltaic cells and panels, biodiesel, crops and
12    untreated and unadulterated organic waste biomass, tree
13    waste, and hydropower that does not involve new
14    construction or significant expansion of hydropower dams;
15        (2) interconnected at the distribution system level of
16    either an electric utility as defined in this Section, an
17    alternative retail electric supplier as defined in Section
18    16-102 of the Public Utilities Act, a municipal utility as
19    defined in Section 3-105 of the Public Utilities Act, or a
20    rural electric cooperative as defined in Section 3-119 of
21    the Public Utilities Act;
22        (3) located on the customer side of the customer's
23    electric meter and is primarily used to offset that
24    customer's electricity load; and
25        (4) limited in nameplate capacity to no more than 2,000
26    kilowatts.

 

 

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1    "Energy efficiency" means measures that reduce the amount
2of electricity or natural gas required to achieve a given end
3use. "Energy efficiency" also includes measures that reduce the
4total Btus of electricity and natural gas needed to meet the
5end use or uses and measures that decrease the heat rate in the
6generation of electricity.
7    "Electric utility" has the same definition as found in
8Section 16-102 of the Public Utilities Act.
9    "Facility" means an electric generating unit or a
10co-generating unit that produces electricity along with
11related equipment necessary to connect the facility to an
12electric transmission or distribution system.
13    "Governmental aggregator" means one or more units of local
14government that individually or collectively procure
15electricity to serve residential retail electrical loads
16located within its or their jurisdiction.
17    "Local government" means a unit of local government as
18defined in Section 1 of Article VII of the Illinois
19Constitution.
20    "Municipality" means a city, village, or incorporated
21town.
22    "Person" means any natural person, firm, partnership,
23corporation, either domestic or foreign, company, association,
24limited liability company, joint stock company, or association
25and includes any trustee, receiver, assignee, or personal
26representative thereof.

 

 

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1    "Project" means the planning, bidding, and construction of
2a facility.
3    "Public utility" has the same definition as found in
4Section 3-105 of the Public Utilities Act.
5    "Real property" means any interest in land together with
6all structures, fixtures, and improvements thereon, including
7lands under water and riparian rights, any easements,
8covenants, licenses, leases, rights-of-way, uses, and other
9interests, together with any liens, judgments, mortgages, or
10other claims or security interests related to real property.
11    "Renewable energy credit" means a tradable credit that
12represents the environmental attributes of a certain amount of
13energy produced from a renewable energy resource.
14    "Renewable energy resources" includes energy and its
15associated renewable energy credit or renewable energy credits
16from wind, solar thermal energy, photovoltaic cells and panels,
17biodiesel, anaerobic digestion, crops and untreated and
18unadulterated organic waste biomass, tree waste, hydropower
19that does not involve new construction or significant expansion
20of hydropower dams, and other alternative sources of
21environmentally preferable energy. For purposes of this Act,
22landfill gas produced in the State is considered a renewable
23energy resource. "Renewable energy resources" does not include
24the incineration or burning of tires, garbage, general
25household, institutional, and commercial waste, industrial
26lunchroom or office waste, landscape waste other than tree

 

 

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1waste, railroad crossties, utility poles, or construction or
2demolition debris, other than untreated and unadulterated
3waste wood.
4    "Revenue bond" means any bond, note, or other evidence of
5indebtedness issued by the Authority, the principal and
6interest of which is payable solely from revenues or income
7derived from any project or activity of the Agency.
8    "Sequester" means permanent storage of carbon dioxide by
9injecting it into a saline aquifer, a depleted gas reservoir,
10or an oil reservoir, directly or through an enhanced oil
11recovery process that may involve intermediate storage,
12regardless of whether these activities are conducted by a clean
13coal facility, a clean coal SNG facility, a clean coal SNG
14brownfield facility, or a party with which a clean coal
15facility, clean coal SNG facility, or clean coal SNG brownfield
16facility has contracted for such purposes.
17    "Sourcing agreement" means (i) in the case of an electric
18utility, an agreement between the owner of a clean coal
19facility and such electric utility, which agreement shall have
20terms and conditions meeting the requirements of paragraph (3)
21of subsection (d) of Section 1-75, (ii) in the case of an
22alternative retail electric supplier, an agreement between the
23owner of a clean coal facility and such alternative retail
24electric supplier, which agreement shall have terms and
25conditions meeting the requirements of Section 16-115(d)(5) of
26the Public Utilities Act, and (iii) in case of a gas utility,

 

 

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1an agreement between the owner of a clean coal SNG brownfield
2facility and the gas utility, which agreement shall have the
3terms and conditions meeting the requirements of subsection
4(h-1) of Section 9-220 of the Public Utilities Act.
5    "Substitute natural gas" or "SNG" means a gas manufactured
6by gasification of hydrocarbon feedstock, which is
7substantially interchangeable in use and distribution with
8conventional natural gas.
9    "Total resource cost test" or "TRC test" means a standard
10that is met if, for an investment in energy efficiency or
11demand-response measures, the benefit-cost ratio is greater
12than one. The benefit-cost ratio is the ratio of the net
13present value of the total benefits of the program to the net
14present value of the total costs as calculated over the
15lifetime of the measures. A total resource cost test compares
16the sum of avoided electric utility costs, representing the
17benefits that accrue to the system and the participant in the
18delivery of those efficiency measures, as well as other
19quantifiable societal benefits, including avoided natural gas
20utility costs, to the sum of all incremental costs of end-use
21measures that are implemented due to the program (including
22both utility and participant contributions), plus costs to
23administer, deliver, and evaluate each demand-side program, to
24quantify the net savings obtained by substituting the
25demand-side program for supply resources. In calculating
26avoided costs of power and energy that an electric utility

 

 

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1would otherwise have had to acquire, reasonable estimates shall
2be included of financial costs likely to be imposed by future
3regulations and legislation on emissions of greenhouse gases.
4(Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-491,
5eff. 8-22-11; 97-616, eff. 10-26-11; 97-813, eff. 7-13-12;
698-90, eff. 7-15-13.)
 
7    (Text of Section after amendment by P.A. 99-906)
8    Sec. 1-10. Definitions.
9    "Agency" means the Illinois Power Agency.
10    "Agency loan agreement" means any agreement pursuant to
11which the Illinois Finance Authority agrees to loan the
12proceeds of revenue bonds issued with respect to a project to
13the Agency upon terms providing for loan repayment installments
14at least sufficient to pay when due all principal of, interest
15and premium, if any, on those revenue bonds, and providing for
16maintenance, insurance, and other matters in respect of the
17project.
18    "Authority" means the Illinois Finance Authority.
19    "Brownfield site photovoltaic project" means photovoltaics
20that are:
21        (1) interconnected to an electric utility as defined in
22    this Section, a municipal utility as defined in this
23    Section, a public utility as defined in Section 3-105 of
24    the Public Utilities Act, or an electric cooperative, as
25    defined in Section 3-119 of the Public Utilities Act; and

 

 

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1        (2) located at a site that is regulated by any of the
2    following entities under the following programs:
3            (A) the United States Environmental Protection
4        Agency under the federal Comprehensive Environmental
5        Response, Compensation, and Liability Act of 1980, as
6        amended;
7            (B) the United States Environmental Protection
8        Agency under the Corrective Action Program of the
9        federal Resource Conservation and Recovery Act, as
10        amended;
11            (C) the Illinois Environmental Protection Agency
12        under the Illinois Site Remediation Program; or
13            (D) the Illinois Environmental Protection Agency
14        under the Illinois Solid Waste Program.
15    "Clean coal facility" means an electric generating
16facility that uses primarily coal as a feedstock and that
17captures and sequesters carbon dioxide emissions at the
18following levels: at least 50% of the total carbon dioxide
19emissions that the facility would otherwise emit if, at the
20time construction commences, the facility is scheduled to
21commence operation before 2016, at least 70% of the total
22carbon dioxide emissions that the facility would otherwise emit
23if, at the time construction commences, the facility is
24scheduled to commence operation during 2016 or 2017, and at
25least 90% of the total carbon dioxide emissions that the
26facility would otherwise emit if, at the time construction

 

 

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1commences, the facility is scheduled to commence operation
2after 2017. The power block of the clean coal facility shall
3not exceed allowable emission rates for sulfur dioxide,
4nitrogen oxides, carbon monoxide, particulates and mercury for
5a natural gas-fired combined-cycle facility the same size as
6and in the same location as the clean coal facility at the time
7the clean coal facility obtains an approved air permit. All
8coal used by a clean coal facility shall have high volatile
9bituminous rank and greater than 1.7 pounds of sulfur per
10million btu content, unless the clean coal facility does not
11use gasification technology and was operating as a conventional
12coal-fired electric generating facility on June 1, 2009 (the
13effective date of Public Act 95-1027).
14    "Clean coal SNG brownfield facility" means a facility that
15(1) has commenced construction by July 1, 2015 on an urban
16brownfield site in a municipality with at least 1,000,000
17residents; (2) uses a gasification process to produce
18substitute natural gas; (3) uses coal as at least 50% of the
19total feedstock over the term of any sourcing agreement with a
20utility and the remainder of the feedstock may be either
21petroleum coke or coal, with all such coal having a high
22bituminous rank and greater than 1.7 pounds of sulfur per
23million Btu content unless the facility reasonably determines
24that it is necessary to use additional petroleum coke to
25deliver additional consumer savings, in which case the facility
26shall use coal for at least 35% of the total feedstock over the

 

 

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1term of any sourcing agreement; and (4) captures and sequesters
2at least 85% of the total carbon dioxide emissions that the
3facility would otherwise emit.
4    "Clean coal SNG facility" means a facility that uses a
5gasification process to produce substitute natural gas, that
6sequesters at least 90% of the total carbon dioxide emissions
7that the facility would otherwise emit, that uses at least 90%
8coal as a feedstock, with all such coal having a high
9bituminous rank and greater than 1.7 pounds of sulfur per
10million btu content, and that has a valid and effective permit
11to construct emission sources and air pollution control
12equipment and approval with respect to the federal regulations
13for Prevention of Significant Deterioration of Air Quality
14(PSD) for the plant pursuant to the federal Clean Air Act;
15provided, however, a clean coal SNG brownfield facility shall
16not be a clean coal SNG facility.
17    "Commission" means the Illinois Commerce Commission.
18    "Community renewable generation project" means an electric
19generating facility that:
20        (1) is powered by wind, solar thermal energy,
21    photovoltaic cells or panels, biodiesel, crops and
22    untreated and unadulterated organic waste biomass, tree
23    waste, and hydropower that does not involve new
24    construction or significant expansion of hydropower dams;
25        (2) is interconnected at the distribution system level
26    of an electric utility as defined in this Section, a

 

 

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1    municipal utility as defined in this Section that owns or
2    operates electric distribution facilities, a public
3    utility as defined in Section 3-105 of the Public Utilities
4    Act, or an electric cooperative, as defined in Section
5    3-119 of the Public Utilities Act;
6        (3) credits the value of electricity generated by the
7    facility to the subscribers of the facility; and
8        (4) is limited in nameplate capacity to less than or
9    equal to 2,000 kilowatts.
10    "Costs incurred in connection with the development and
11construction of a facility" means:
12        (1) the cost of acquisition of all real property,
13    fixtures, and improvements in connection therewith and
14    equipment, personal property, and other property, rights,
15    and easements acquired that are deemed necessary for the
16    operation and maintenance of the facility;
17        (2) financing costs with respect to bonds, notes, and
18    other evidences of indebtedness of the Agency;
19        (3) all origination, commitment, utilization,
20    facility, placement, underwriting, syndication, credit
21    enhancement, and rating agency fees;
22        (4) engineering, design, procurement, consulting,
23    legal, accounting, title insurance, survey, appraisal,
24    escrow, trustee, collateral agency, interest rate hedging,
25    interest rate swap, capitalized interest, contingency, as
26    required by lenders, and other financing costs, and other

 

 

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1    expenses for professional services; and
2        (5) the costs of plans, specifications, site study and
3    investigation, installation, surveys, other Agency costs
4    and estimates of costs, and other expenses necessary or
5    incidental to determining the feasibility of any project,
6    together with such other expenses as may be necessary or
7    incidental to the financing, insuring, acquisition, and
8    construction of a specific project and starting up,
9    commissioning, and placing that project in operation.
10    "Delivery services" has the same definition as found in
11Section 16-102 of the Public Utilities Act.
12    "Delivery year" means the consecutive 12-month period
13beginning June 1 of a given year and ending May 31 of the
14following year.
15    "Department" means the Department of Commerce and Economic
16Opportunity.
17    "Director" means the Director of the Illinois Power Agency.
18    "Demand-response" means measures that decrease peak
19electricity demand or shift demand from peak to off-peak
20periods.
21    "Distributed renewable energy generation device" means a
22device that is:
23        (1) powered by wind, solar thermal energy,
24    photovoltaic cells or panels, biodiesel, crops and
25    untreated and unadulterated organic waste biomass, tree
26    waste, and hydropower that does not involve new

 

 

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1    construction or significant expansion of hydropower dams;
2        (2) interconnected at the distribution system level of
3    either an electric utility as defined in this Section, a
4    municipal utility as defined in this Section that owns or
5    operates electric distribution facilities, or a rural
6    electric cooperative as defined in Section 3-119 of the
7    Public Utilities Act;
8        (3) located on the customer side of the customer's
9    electric meter and is primarily used to offset that
10    customer's electricity load; and
11        (4) limited in nameplate capacity to less than or equal
12    to 2,000 kilowatts.
13    "Energy efficiency" means measures that reduce the amount
14of electricity or natural gas consumed in order to achieve a
15given end use. "Energy efficiency" includes voltage
16optimization measures that optimize the voltage at points on
17the electric distribution voltage system and thereby reduce
18electricity consumption by electric customers' end use
19devices. "Energy efficiency" also includes measures that
20reduce the total Btus of electricity, natural gas, and other
21fuels needed to meet the end use or uses and measures that
22decrease the heat rate in the generation of electricity.
23    "Electric utility" has the same definition as found in
24Section 16-102 of the Public Utilities Act.
25    "Facility" means an electric generating unit or a
26co-generating unit that produces electricity along with

 

 

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1related equipment necessary to connect the facility to an
2electric transmission or distribution system.
3    "Governmental aggregator" means one or more units of local
4government that individually or collectively procure
5electricity to serve residential retail electrical loads
6located within its or their jurisdiction.
7    "Local government" means a unit of local government as
8defined in Section 1 of Article VII of the Illinois
9Constitution.
10    "Municipality" means a city, village, or incorporated
11town.
12    "Municipal utility" means a public utility owned and
13operated by any subdivision or municipal corporation of this
14State.
15    "Nameplate capacity" means the aggregate inverter
16nameplate capacity in kilowatts AC.
17    "Person" means any natural person, firm, partnership,
18corporation, either domestic or foreign, company, association,
19limited liability company, joint stock company, or association
20and includes any trustee, receiver, assignee, or personal
21representative thereof.
22    "Project" means the planning, bidding, and construction of
23a facility.
24    "Public utility" has the same definition as found in
25Section 3-105 of the Public Utilities Act.
26    "Real property" means any interest in land together with

 

 

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1all structures, fixtures, and improvements thereon, including
2lands under water and riparian rights, any easements,
3covenants, licenses, leases, rights-of-way, uses, and other
4interests, together with any liens, judgments, mortgages, or
5other claims or security interests related to real property.
6    "Renewable energy credit" means a tradable credit that
7represents the environmental attributes of one megawatt hour of
8energy produced from a renewable energy resource.
9    "Renewable energy resources" includes energy and its
10associated renewable energy credit or renewable energy credits
11from wind, solar thermal energy, photovoltaic cells and panels,
12biodiesel, anaerobic digestion, crops and untreated and
13unadulterated organic waste biomass, tree waste, and
14hydropower that does not involve new construction or
15significant expansion of hydropower dams. For purposes of this
16Act, landfill gas produced in the State is considered a
17renewable energy resource. "Renewable energy resources" does
18not include the incineration or burning of tires, garbage,
19general household, institutional, and commercial waste,
20industrial lunchroom or office waste, landscape waste other
21than tree waste, railroad crossties, utility poles, or
22construction or demolition debris, other than untreated and
23unadulterated waste wood.
24    "Retail customer" has the same definition as found in
25Section 16-102 of the Public Utilities Act.
26    "Revenue bond" means any bond, note, or other evidence of

 

 

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1indebtedness issued by the Authority, the principal and
2interest of which is payable solely from revenues or income
3derived from any project or activity of the Agency.
4    "Sequester" means permanent storage of carbon dioxide by
5injecting it into a saline aquifer, a depleted gas reservoir,
6or an oil reservoir, directly or through an enhanced oil
7recovery process that may involve intermediate storage,
8regardless of whether these activities are conducted by a clean
9coal facility, a clean coal SNG facility, a clean coal SNG
10brownfield facility, or a party with which a clean coal
11facility, clean coal SNG facility, or clean coal SNG brownfield
12facility has contracted for such purposes.
13    "Service area" has the same definition as found in Section
1416-102 of the Public Utilities Act.
15    "Sourcing agreement" means (i) in the case of an electric
16utility, an agreement between the owner of a clean coal
17facility and such electric utility, which agreement shall have
18terms and conditions meeting the requirements of paragraph (3)
19of subsection (d) of Section 1-75, (ii) in the case of an
20alternative retail electric supplier, an agreement between the
21owner of a clean coal facility and such alternative retail
22electric supplier, which agreement shall have terms and
23conditions meeting the requirements of Section 16-115(d)(5) of
24the Public Utilities Act, and (iii) in case of a gas utility,
25an agreement between the owner of a clean coal SNG brownfield
26facility and the gas utility, which agreement shall have the

 

 

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1terms and conditions meeting the requirements of subsection
2(h-1) of Section 9-220 of the Public Utilities Act.
3    "Subscriber" means a person who (i) takes delivery service
4from an electric utility, and (ii) has a subscription of no
5less than 200 watts to a community renewable generation project
6that is located in the electric utility's service area. No
7subscriber's subscriptions may total more than 40% of the
8nameplate capacity of an individual community renewable
9generation project. Entities that are affiliated by virtue of a
10common parent shall not represent multiple subscriptions that
11total more than 40% of the nameplate capacity of an individual
12community renewable generation project.
13    "Subscription" means an interest in a community renewable
14generation project expressed in kilowatts, which is sized
15primarily to offset part or all of the subscriber's electricity
16usage.
17    "Substitute natural gas" or "SNG" means a gas manufactured
18by gasification of hydrocarbon feedstock, which is
19substantially interchangeable in use and distribution with
20conventional natural gas.
21    "Total resource cost test" or "TRC test" means a standard
22that is met if, for an investment in energy efficiency or
23demand-response measures, the benefit-cost ratio is greater
24than one. The benefit-cost ratio is the ratio of the net
25present value of the total benefits of the program to the net
26present value of the total costs as calculated over the

 

 

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1lifetime of the measures. A total resource cost test compares
2the sum of avoided electric utility costs, representing the
3benefits that accrue to the system and the participant in the
4delivery of those efficiency measures and including avoided
5costs associated with reduced use of natural gas or other
6fuels, avoided costs associated with reduced water
7consumption, and avoided costs associated with reduced
8operation and maintenance costs, as well as other quantifiable
9societal benefits, to the sum of all incremental costs of
10end-use measures that are implemented due to the program
11(including both utility and participant contributions), plus
12costs to administer, deliver, and evaluate each demand-side
13program, to quantify the net savings obtained by substituting
14the demand-side program for supply resources. In calculating
15avoided costs of power and energy that an electric utility
16would otherwise have had to acquire, reasonable estimates shall
17be included of financial costs likely to be imposed by future
18regulations and legislation on emissions of greenhouse gases.
19In discounting future societal costs and benefits for the
20purpose of calculating net present values, a societal discount
21rate based on actual, long-term Treasury bond yields should be
22used. Notwithstanding anything to the contrary, the TRC test
23shall not include or take into account a calculation of market
24price suppression effects or demand reduction induced price
25effects.
26    "Utility-scale solar project" means an electric generating

 

 

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1facility that:
2        (1) generates electricity using photovoltaic cells;
3    and
4        (2) has a nameplate capacity that is greater than 2,000
5    kilowatts.
6    "Utility-scale wind project" means an electric generating
7facility that:
8        (1) generates electricity using wind; and
9        (2) has a nameplate capacity that is greater than 2,000
10    kilowatts.
11    "Zero emission credit" means a tradable credit that
12represents the environmental attributes of one megawatt hour of
13energy produced from a zero emission facility.
14    "Zero emission facility" means a facility that: (1) is
15fueled by nuclear power; and (2) is interconnected with PJM
16Interconnection, LLC or the Midcontinent Independent System
17Operator, Inc., or their successors.
18(Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17.)
 
19    Section 95. No acceleration or delay. Where this Act makes
20changes in a statute that is represented in this Act by text
21that is not yet or no longer in effect (for example, a Section
22represented by multiple versions), the use of that text does
23not accelerate or delay the taking effect of (i) the changes
24made by this Act or (ii) provisions derived from any other
25Public Act.