Full Text of SB0619 94th General Assembly
SB0619enr 94TH GENERAL ASSEMBLY
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SB0619 Enrolled |
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| AN ACT concerning State government.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Department of Commerce and Economic | 5 |
| Opportunity Law of the Civil Administrative Code of Illinois is | 6 |
| 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 | 9 |
| facilities.
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| (a) As used in this Section:
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| "New electric generating facility" means a | 12 |
| newly-constructed electric
generation plant or a newly | 13 |
| constructed generation capacity expansion at an
existing | 14 |
| facility, including the transmission lines and associated | 15 |
| equipment
that transfers electricity from points of supply to | 16 |
| points of delivery, and for
which foundation construction | 17 |
| commenced not sooner than July 1, 2001, which is
designed to | 18 |
| 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 | 22 |
| coal or gases derived
from coal as its primary fuel
source, | 23 |
| and supports the creation of at least 150 new Illinois coal | 24 |
| mining
jobs; or
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| (2) is funded through a federal Department of Energy | 26 |
| grant before December 31, 2007
July 1, 2006 and supports | 27 |
| the
creation of
Illinois
coal-mining jobs; or
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| (3) uses coal gasification or integrated | 29 |
| gasification-combined cycle
units that generate | 30 |
| 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 | 2 |
| transportation fuels derived from coal (which may include, but | 3 |
| are not limited to, methane, methanol, and nitrogen | 4 |
| fertilizer), that supports the creation or retention of | 5 |
| Illinois coal-mining jobs, and that qualifies for financial | 6 |
| assistance from the Department before December 31, 2006. A new | 7 |
| gasification facility does not include a pilot project located | 8 |
| within Jefferson County or within a county adjacent to | 9 |
| Jefferson County for synthetic natural gas from coal.
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| "New facility" means a new electric generating facility or | 11 |
| a new gasification facility. A new facility does not include a | 12 |
| pilot project located within Jefferson County or within a | 13 |
| county adjacent to Jefferson County for synthetic natural gas | 14 |
| from coal.
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| "Eligible business" means an entity that proposes to | 16 |
| construct a new facility and that has applied to the Department | 17 |
| to receive financial
assistance pursuant to this Section.
With | 18 |
| respect to use and occupation taxes, wherever there is a | 19 |
| reference to
taxes, that reference means only those taxes paid | 20 |
| 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 | 24 |
| assistance to eligible businesses for new
facilities from funds | 25 |
| appropriated by the General Assembly as further provided
in | 26 |
| this Section.
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| An eligible business seeking qualification for financial | 28 |
| assistance for
a new facility, for purposes of this Section | 29 |
| only, shall
apply to the Department in the manner specified by | 30 |
| the Department. Any
projections provided by an eligible | 31 |
| business as part of the application shall
be independently | 32 |
| 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 | 35 |
| 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 | 3 |
| at the new facility for a minimum of 4 preceding calendar | 4 |
| quarters or (ii)
the projected amount of State occupation | 5 |
| and use taxes paid on Illinois-mined
coal used at the new | 6 |
| facility in 4 calendar year quarters
after completion of | 7 |
| the new facility.
Bond proceeds subject to this Section | 8 |
| shall not be allocated to an
eligible business until the | 9 |
| eligible business has demonstrated the revenue
stream | 10 |
| sufficient to service the debt on the bonds; and
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| (3) the actual or projected amount of capital | 12 |
| investment by the
eligible business
in the new facility.
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| The Department shall determine the maximum amount of | 14 |
| financial
assistance for eligible businesses in accordance | 15 |
| with this paragraph. The
Department shall not provide financial | 16 |
| assistance from general obligation bond
funds to any eligible | 17 |
| business
unless it receives a written certification from the | 18 |
| Director of the
Bureau of
the Budget
(now Governor's Office of | 19 |
| Management and Budget)
that 80% of the State occupation and use | 20 |
| tax receipts for a minimum
of the
preceding 4 calendar quarters | 21 |
| for all eligible businesses or as included in
projections on | 22 |
| approved applications by eligible businesses equal or exceed
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| 110% of the maximum annual debt service required with respect | 24 |
| to general
obligation bonds issued for that purpose. The | 25 |
| Department may provide
financial assistance not to exceed the | 26 |
| amount of State general obligation
debt calculated as above, | 27 |
| the amount of actual or projected capital
investment in the | 28 |
| facility, or $100,000,000, whichever is less.
Financial | 29 |
| assistance received pursuant to this Section may be used
for | 30 |
| capital facilities consisting of buildings, structures, | 31 |
| durable equipment,
and land at the new facility. Subject to the | 32 |
| provisions
of the agreement covering the financial assistance, | 33 |
| a portion of the financial
assistance may be required to be | 34 |
| repaid to the State if certain conditions for
the governmental | 35 |
| 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 | 2 |
| Illinois-mined coal
purchased during
the previous month for use | 3 |
| in the new facility, the
purchase price of that coal, the | 4 |
| amount of State
occupation and use taxes paid on that purchase | 5 |
| to the seller of the
Illinois-mined coal, and
such other
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| information as that Department may reasonably require. In sales | 7 |
| of
Illinois-mined coal between related parties, the purchase | 8 |
| price of the coal
must have been determined in an arms-length | 9 |
| transaction. The report shall be
filed with the Illinois | 10 |
| Department of Revenue on or before the 20th day of
each month | 11 |
| on a form provided by that Department. However, no report
need | 12 |
| be filed by an eligible business in a month when it made
no | 13 |
| reportable purchases of coal in the previous month.
The | 14 |
| Illinois Department of Revenue shall provide a summary of such | 15 |
| reports to
the
Governor's Office of Management and Budget.
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| Upon granting financial assistance to an eligible | 17 |
| business, the Department
shall certify the name of the eligible | 18 |
| business to the Illinois Department of
Revenue. Beginning with | 19 |
| the receipt of the first report of State occupation
and use | 20 |
| taxes paid by an
eligible business and continuing for a 25-year | 21 |
| period, the Illinois Department
of Revenue shall each month pay | 22 |
| into the Energy Infrastructure Fund 80% of the
net revenue | 23 |
| 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. 93-167, eff. 7-10-03; 93-1064, eff. 1-13-05; | 26 |
| 94-65, eff. 6-21-05.)
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| Section 99. Effective date. This Act takes effect upon | 28 |
| becoming law. |
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