Sen. David Koehler

Filed: 10/14/2009

 

 


 

 


 
09600SB0390sam001 LRB096 06421 MJR 30027 a

1
AMENDMENT TO SENATE BILL 390

2     AMENDMENT NO. ______. Amend Senate Bill 390 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Finance Authority Act is amended
5 by changing Sections 825-65, 825-70, and 825-75 as follows:
 
6     (20 ILCS 3501/825-65)
7     Sec. 825-65. Clean Coal, Coal, Energy Efficiency, and
8 Renewable 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

 

 

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1     best interests of all of the citizens of Illinois.
2         (ii) It is further found and declared that Illinois has
3     abundant potential and resources to develop renewable
4     energy resource projects and that there are many
5     opportunities to invest in cost-effective energy
6     efficiency projects throughout the State. The development
7     of those projects will create jobs and investment as well
8     as decrease environmental impacts and promote energy
9     independence in Illinois. Accordingly, the development of
10     those projects is in the best interests of all of the
11     citizens of Illinois.
12         (iii) The Authority is authorized to issue bonds to
13     help finance Clean Coal, Coal, Energy Efficiency, and
14     Renewable Energy projects pursuant to this Section.
15     (b) Definitions.
16         (i) "Clean Coal Project" means (A) "clean coal
17     facility", as defined in Section 1-10 of the Illinois Power
18     Agency Act; (B) "clean coal SNG facility", as defined in
19     Section 1-10 of the Illinois Power Agency Act; (C)
20     transmission lines and associated equipment that transfer
21     electricity from points of supply to points of delivery for
22     projects described in this subsection (b); (D) pipelines or
23     other methods to transfer carbon dioxide from the point of
24     production to the point of storage or sequestration for
25     projects described in this subsection (b); or (E) projects
26     to provide carbon abatement technology for existing

 

 

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1     generating facilities.
2         (ii) "Coal Project" means new electric generating
3     facilities or new gasification facilities, as defined in
4     Section 605-332 of the Department of Commerce and Economic
5     Opportunity Law of the Civil Administrative Code of
6     Illinois, which may include mine-mouth power plants,
7     projects that employ the use of clean coal technology,
8     projects to provide scrubber technology for existing
9     energy generating plants, or projects to provide electric
10     transmission facilities or new gasification facilities.
11         (iii) “Energy Efficiency Project” means measures that
12     reduce the amount of electricity or natural gas required to
13     achieve a given end use, consistent with Section 1-10 of
14     the Illinois Power Agency Act.
15         (iv) "Renewable Energy Project" means (A) a project
16     that uses renewable energy resources, as defined in Section
17     1-10 of the Illinois Power Agency Act; (B) a project that
18     uses environmentally preferable technologies and practices
19     that result in improvements to the production of renewable
20     fuels, including but not limited to, cellulosic
21     conversion, water and energy conservation, fractionation,
22     alternative feedstocks, or reduced green house gas
23     emissions; (C) transmission lines and associated equipment
24     that transfer electricity from points of supply to points
25     of delivery for projects described in this subsection (b);
26     or (D) projects that use technology for the storage of

 

 

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1     renewable energy, including, without limitation, the use
2     of battery or electrochemical storage technology for
3     mobile or stationary applications.
4     (c) Creation of reserve funds. The Authority may establish
5 and maintain one or more reserve funds to enhance bonds issued
6 by the Authority for a Clean Coal Project, a Coal Project, an
7 Energy Efficiency Project, or a Renewable Energy Project. There
8 may be one or more accounts in these reserve funds in which
9 there may be deposited:
10         (1) any proceeds of the bonds issued by the Authority
11     required to be deposited therein by the terms of any
12     contract between the Authority and its bondholders or any
13     resolution of the Authority;
14         (2) any other moneys or funds of the Authority that it
15     may determine to deposit therein from any other source; and
16         (3) any other moneys or funds made available to the
17     Authority. Subject to the terms of any pledge to the owners
18     of any bonds, moneys in any reserve fund may be held and
19     applied to the payment of principal, premium, if any, and
20     interest of such bonds.
21     (d) Powers and duties. The Authority has the power:
22         (1) To issue bonds in one or more series pursuant to
23     one or more resolutions of the Authority for any Clean Coal
24     Project, Coal Project, Energy Efficiency Project, or
25     Renewable Energy Project authorized under this Section,
26     within the authorization set forth in subsection (e).

 

 

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1         (2) To provide for the funding of any reserves or other
2     funds or accounts deemed necessary by the Authority in
3     connection with any bonds issued by the Authority.
4         (3) To pledge any funds of the Authority or funds made
5     available to the Authority that may be applied to such
6     purpose as security for any bonds or any guarantees,
7     letters of credit, insurance contracts or similar credit
8     support or liquidity instruments securing the bonds.
9         (4) To enter into agreements or contracts with third
10     parties, whether public or private, including, without
11     limitation, the United States of America, the State or any
12     department or agency thereof, to obtain any
13     appropriations, grants, loans or guarantees that are
14     deemed necessary or desirable by the Authority. Any such
15     guarantee, agreement or contract may contain terms and
16     provisions necessary or desirable in connection with the
17     program, subject to the requirements established by the
18     Act.
19         (5) To exercise such other powers as are necessary or
20     incidental to the foregoing.
21     (e) Clean Coal Project, Coal Project, Energy Efficiency
22 Project, and Renewable Energy Project bond authorization and
23 financing limits. In addition to any other bonds authorized to
24 be issued under Sections 801-40(w), 825-60, 830-25 and 845-5,
25 the Authority may have outstanding, at any time, bonds for the
26 purpose enumerated in this Section 825-65 in an aggregate

 

 

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1 principal amount that shall not exceed $3,000,000,000, subject
2 to the following limitations: (i) up to $300,000,000 may be
3 issued to finance projects, as described in clause (C) of
4 subsection (b)(i) and clause (C) of subsection (b)(iv) (b)(iii)
5 of this Section 825-65; (ii) up to $500,000,000 may be issued
6 to finance projects, as described in clauses (D) and (E) of
7 subsection (b)(i) of this Section 825-65; (iii) up to
8 $2,000,000,000 may be issued to finance Clean Coal Projects, as
9 described in clauses (A) and (B) of subsection (b)(i) of this
10 Section 825-65 and Coal Projects, as described in subsection
11 (b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000
12 may be issued to finance Energy Efficiency Projects, as
13 described in subsection (b)(iii) of this Section 825-65 and
14 Renewable Energy Projects, as described in clauses (A), (B),
15 and (D) of subsection (b)(iii) of this Section 825-65. An
16 application for a loan financed from bond proceeds from a
17 borrower or its affiliates for a Clean Coal Project, a Coal
18 Project, Energy Efficiency Project, or a Renewable Energy
19 Project may not be approved by the Authority for an amount in
20 excess of $450,000,000 for any borrower or its affiliates.
21 These bonds shall not constitute an indebtedness or obligation
22 of the State of Illinois and it shall be plainly stated on the
23 face of each bond that it does not constitute an indebtedness
24 or obligation of the State of Illinois, but is payable solely
25 from the revenues, income or other assets of the Authority
26 pledged therefor.

 

 

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1     (f) The bonding authority granted under this Section is in
2 addition to and not limited by the provisions of Section 845-5.
3 (Source: P.A. 95-470, eff. 8-27-07; 96-103, eff. 1-1-10.)
 
4     (20 ILCS 3501/825-70)
5     Sec. 825-70. Criteria for participation in the program.
6 Applications to the Authority for financing of any Clean Coal,
7 Coal, Energy Efficiency Project, or Renewable Energy Project
8 shall be reviewed by the Authority. Upon submission of any such
9 application, the Authority staff shall review the application
10 for its completeness and may, at the discretion of the
11 Authority staff, request such additional information as it
12 deems necessary or advisable to aid in review. If the Authority
13 receives applications for financing for Clean Coal, Coal,
14 Energy Efficiency Project, or Renewable Energy Projects in
15 excess of the bond authorization available for such financing
16 at any one time, it shall consider applications in the order of
17 priority as it shall determine, in consultation with other
18 State agencies, and consistent with State policy to promote
19 environmentally preferable technology and energy independence.
20 (Source: P.A. 96-103, eff. 1-1-10.)
 
21     (20 ILCS 3501/825-75)
22     Sec. 825-75. Additional Security. In the event that the
23 Authority determines that monies of the Authority will not be
24 sufficient for the payment of the principal of and interest on

 

 

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1 any bonds issued by the Authority under Sections 825-65 through
2 825-75 of this Act for Clean Coal Projects, Coal Projects,
3 Energy Efficiency Projects, or Renewable Energy Projects
4 during the next State fiscal year, the Chairperson, as soon as
5 practicable, shall certify to the Governor the amount required
6 by the Authority to enable it to pay such principal, premium,
7 if any, and interest on such bonds. The Governor shall submit
8 the amount so certified to the General Assembly as soon as
9 practicable, but no later than the end of the current State
10 fiscal year. This subsection shall apply to any bonds or notes
11 as to which the Authority shall have determined, in the
12 resolution authorizing the issuance of the bonds or notes, that
13 this subsection shall apply. Whenever the Authority makes such
14 a determination, that fact shall be plainly stated on the face
15 of the bonds or notes and that fact should also be reported to
16 the Governor. In the event of a withdrawal of moneys from a
17 reserve fund established with respect to any issue or issues of
18 bonds of the Authority to pay principal, premium, if any, and
19 interest on such bonds, the Chairman of the Authority, as soon
20 as practicable, shall certify to the Governor the amount
21 required to restore the reserve fund to the level required in
22 the resolution or indenture securing those bonds. The Governor
23 shall submit the amount so certified to the General Assembly as
24 soon as practicable, but no later than the end of the current
25 State fiscal year. The Authority shall obtain written approval
26 from the Governor for any bonds and notes to be issued under

 

 

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1 this Section.
2 (Source: P.A. 95-470, eff. 8-27-07; 96-103, eff. 1-1-10.)
 
3     Section 99. Effective date. This Act takes effect January
4 1, 2010.".