Full Text of SB1704 95th General Assembly
SB1704enr 95TH GENERAL ASSEMBLY
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| AN ACT concerning alternative energy.
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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 1. Short title. This Act may be cited as the Clean | 5 |
| Coal FutureGen for Illinois Act. | 6 |
| Section 5. Purpose. Recognizing that the FutureGen Project | 7 |
| is a first-of-a-kind research project to permanently sequester | 8 |
| underground carbon-dioxide emissions from a coal-fueled power | 9 |
| plant, and that such a project would have benefits to the | 10 |
| economy and environment of Illinois, the purpose of this Act is | 11 |
| to provide the FutureGen Alliance with adequate liability | 12 |
| protection and permitting certainty to facilitate the siting of | 13 |
| the FutureGen Project in the State of Illinois. | 14 |
| Section 10. Legislative findings. The General Assembly | 15 |
| finds and determines that: | 16 |
| (1) human-induced greenhouse gas emissions have been | 17 |
| identified as contributing to global warming, the effects of | 18 |
| which pose a threat to public health and safety and the economy | 19 |
| of the State of Illinois; | 20 |
| (2) in order to meet the energy needs of the State of | 21 |
| Illinois, keep its economy strong and protect the environment | 22 |
| while reducing its contribution to human-induced greenhouse |
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| gas emissions, the State of Illinois must be a leader in | 2 |
| developing new low-carbon technologies; | 3 |
| (3) carbon capture and storage is a low-carbon technology | 4 |
| that involves capturing the carbon dioxide from fossil fuel | 5 |
| energy and hydrogen generating units and injecting it into | 6 |
| secure geologic strata for permanent storage; | 7 |
| (4) the FutureGen Project is a public-private partnership | 8 |
| between the Federal Department of Energy and the FutureGen | 9 |
| Alliance that proposes to use this new technology as part of a | 10 |
| plan to build and operate a near zero emission coal fueled | 11 |
| power plant; | 12 |
| (5) the FutureGen Project will help ensure the long-term | 13 |
| viability of Illinois Basin coal as a major energy source in | 14 |
| the State of Illinois and throughout the nation and represents | 15 |
| a significant step in the State of Illinois' efforts to become | 16 |
| a self-sufficient, clean energy producer; | 17 |
| (6) the FutureGen Project provides an opportunity for the | 18 |
| State of Illinois to partner with the Federal Department of | 19 |
| Energy and the FutureGen Alliance in the development of these | 20 |
| innovative clean-coal technologies; | 21 |
| (7) the FutureGen Project will make the State of Illinois a | 22 |
| center for developing and refining clean coal technology, | 23 |
| hydrogen production and carbon capture and storage, and will | 24 |
| result in the development of new technologies designed to | 25 |
| improve the efficiency of the energy industry that will be | 26 |
| replicated world wide; |
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| (8) the FutureGen Project is an important coal development | 2 |
| and conversion project that will create jobs in the State of | 3 |
| Illinois during the construction and operational phases, | 4 |
| contribute to the overall economy of the State of Illinois and | 5 |
| help reinvigorate the Illinois Basin coal industry; and | 6 |
| (9) the FutureGen Project and the property necessary for | 7 |
| the FutureGen Project serve a substantial public purpose as its | 8 |
| coal gasification, electricity generation, hydrogen | 9 |
| production, advanced emissions control and carbon capture and | 10 |
| storage technologies will benefit the citizens of the State of | 11 |
| Illinois. | 12 |
| Section 15. Definitions. For the purposes of this Act: | 13 |
| "Agency" means the Illinois Environmental Protection | 14 |
| Agency. | 15 |
| "Carbon capture and storage" means the process of capturing | 16 |
| CO2 and other chemical constituents from coal combustion | 17 |
| by-products for the purpose of injecting and storing the gas | 18 |
| for permanent storage. | 19 |
| "Carbon dioxide" or "CO2" means a colorless, odorless gas | 20 |
| in the form of one carbon and 2 oxygen atoms that is the | 21 |
| principal greenhouse gas. | 22 |
| "Department" means the Department of Commerce and Economic | 23 |
| Opportunity. | 24 |
| "Director" means the Director of Commerce and Economic | 25 |
| Opportunity. |
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| "Federal Department" means the federal Department of | 2 |
| Energy. | 3 |
| "FutureGen Alliance" is a 501(c)(3) non-profit consortium | 4 |
| of coal and energy producers that, as of the effective date of | 5 |
| this Act, includes American Electric Power, Anglo American plc, | 6 |
| BHP Billiton, E. ON US, China Huaneng Group, CONSOL Energy, | 7 |
| Foundation Coal, Kennecott Energy, Peabody Energy, PPL | 8 |
| Corporation, Rio Tinto Energy American, Southern Company, and | 9 |
| Xstrata Coal. | 10 |
| "FutureGen Project" means the public-private partnership | 11 |
| between the Federal Department and the FutureGen Alliance that | 12 |
| will construct and operate a coal-fueled power plant utilizing | 13 |
| state-of-the-art clean-coal technology and carbon capture and | 14 |
| storage. Two locations in Illinois, Tuscola and Mattoon, are | 15 |
| under consideration for the FutureGen Project. These are the | 16 |
| only locations eligible for benefits under this Act. | 17 |
| "Mount Simon Formation" means the deep sandstone reservoir | 18 |
| into which the sequestered gas is to be injected at depths | 19 |
| generally ranging between 5,500 and 8,500 feet below ground | 20 |
| surface and that is bounded by the granitic basement below and | 21 |
| the Eau Claire Shale above. | 22 |
| "Operator" means the FutureGen Alliance and its member | 23 |
| companies, including their parent companies, subsidiaries, | 24 |
| affiliates, directors, officers, employees, and agents. | 25 |
| "Post-injection" means after the captured gas has been | 26 |
| successfully injected into the wellhead at the point at which |
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| the gas is transferred into the wellbore for carbon | 2 |
| sequestration and storage into the Mount Simon Formation. | 3 |
| "Pre-injection" means all activities and occurrences prior | 4 |
| to successful delivery into the wellhead at the point at which | 5 |
| the gas is transferred into the wellbore for carbon | 6 |
| sequestration and storage into the Mount Simon Formation, | 7 |
| including but not limited to, the operation of the FutureGen | 8 |
| Project. | 9 |
| "Public liability" means any civil legal liability arising | 10 |
| out of or resulting from the storage, escape, release, or | 11 |
| migration of the post-injection sequestered gas that was | 12 |
| injected during the operation of the FutureGen Project by the | 13 |
| FutureGen Alliance. The term "public liability", however, does | 14 |
| not include any legal liability arising out of or resulting | 15 |
| from the construction, operation, or other pre-injection | 16 |
| activity of the Operator. | 17 |
| "Public liability action" or "action" means a written | 18 |
| demand, lawsuit, or claim from any third party received by the | 19 |
| Operator seeking a remedy or alleging liability on behalf of | 20 |
| Operator resulting from any public liability. | 21 |
| "Sequestered gas" means the CO2 and other chemical | 22 |
| constituents from the FutureGen Project operations that are | 23 |
| injected into the Mount Simon Formation.
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| Section 20. Title to sequestered gas. If the FutureGen | 25 |
| Project locates at either the Tuscola or Mattoon site in the |
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| State of Illinois, then the FutureGen Alliance agrees that the | 2 |
| Operator shall transfer and convey and the State of Illinois | 3 |
| shall accept and receive, with no payment due from the State of | 4 |
| Illinois, all rights, title, and interest in and to and any | 5 |
| liabilities associated with the sequestered gas, including any | 6 |
| current or future environmental benefits, marketing claims, | 7 |
| tradable credits, emissions allocations or offsets (voluntary | 8 |
| or compliance based) associated therewith, upon such gas | 9 |
| reaching the status of post-injection, which shall be verified | 10 |
| by the Agency or other designated State of Illinois agency. The | 11 |
| Operator shall retain all rights, title, and interest in and to | 12 |
| and any liabilities associated with the pre-injection | 13 |
| sequestered gas. The Illinois State Geological Survey of the | 14 |
| Illinois Department of Natural Resources shall monitor, | 15 |
| measure, and verify the permanent status of sequestered carbon | 16 |
| dioxide and co-sequestered gases in which the State has | 17 |
| acquired the right, title, and interest under this Section. | 18 |
| Section 23. Sequestered gas. The State of Illinois may not | 19 |
| intentionally remove sequestered gas unless the removal is for | 20 |
| the purpose of research and development. | 21 |
| Section 25. Insurance against qualified losses. | 22 |
| (a) The Department shall procure an insurance policy from a | 23 |
| private insurance carrier or carriers, if and to the extent | 24 |
| that such a policy is available, that insures the Operator |
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| against any qualified loss stemming from a public liability | 2 |
| action. The policy must be procured in accordance with the | 3 |
| provisions of the Procurement Code. | 4 |
| (b) Pursuant to Section 30 of this Act, the State shall | 5 |
| indemnify the Operator against any qualified loss stemming from | 6 |
| a public liability action to the extent that the qualified loss | 7 |
| is not covered under an insurance policy under subsection (a) | 8 |
| of this Section. | 9 |
| (c) The Department shall pay any insurance premium, | 10 |
| deductible, or liability under subsections (a) or (b) from | 11 |
| appropriations by the General Assembly for that purpose. It is | 12 |
| the intent of this Act that, to the extent practical, any | 13 |
| unexpended balance of the proceeds from the sale of emission | 14 |
| reduction rights or tradable credits to which the State has | 15 |
| title under Section 20 should be used for the purposes of this | 16 |
| subsection (c). | 17 |
| (d) If the FutureGen Alliance locates the FutureGen Project | 18 |
| at either the Mattoon or Tuscola site in the State of Illinois, | 19 |
| then the Department shall be authorized to contract with the | 20 |
| FutureGen Alliance, under terms not inconsistent with this Act, | 21 |
| in order to define the rights and obligations of the FutureGen | 22 |
| Alliance and the Department, including but not limited to, the | 23 |
| insurance and indemnification obligations under Sections 25 | 24 |
| and 30 of this Act. | 25 |
| (e) If federal indemnification covers all or a portion of | 26 |
| the obligations assumed by the State under Section 25 of this |
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| Act, such State obligations shall be reduced in proportion to | 2 |
| the federal indemnification and be considered subordinated to | 3 |
| any federal indemnification. | 4 |
| (g) For the purpose of this Section, "qualified loss" means | 5 |
| a loss by the Operator stemming from a public liability action | 6 |
| other than those losses arising out of or relating to: | 7 |
| (1) the intentional or willful misconduct of the | 8 |
| Operator in its operation of the FutureGen Project; | 9 |
| (2) the failure of the Operator to comply with any | 10 |
| applicable law, rule, regulation, or other requirement | 11 |
| established by the Federal Department, Agency, or State of | 12 |
| Illinois for the carbon capture and storage of the | 13 |
| sequestered gas, including any limitations on the chemical | 14 |
| composition of any sequestered gas; or | 15 |
| (3) the pre-injection operation of the FutureGen | 16 |
| Project. | 17 |
| Section 30. Indemnification. Notwithstanding any law to | 18 |
| the contrary, the State of Illinois shall indemnify, hold | 19 |
| harmless, defend, and release the Operator from and against any | 20 |
| public liability action asserted against the Operator, subject | 21 |
| to the following terms and conditions: | 22 |
| (a) The obligation of the State of Illinois to indemnify | 23 |
| the Operator does not extend to any public liability arising | 24 |
| out of or relating to: | 25 |
| (1) the intentional or willful misconduct of the |
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| Operator in its operation of the FutureGen Project; | 2 |
| (2) the failure of the Operator to comply with any | 3 |
| applicable law, rule, regulation, or other requirement | 4 |
| established by the Federal Department, Agency, or State of | 5 |
| Illinois for the carbon capture and storage of the | 6 |
| sequestered gas, including any limitations on the chemical | 7 |
| composition of any sequestered gas; | 8 |
| (3) the pre-injection operation of the FutureGen | 9 |
| Project; or | 10 |
| (4) a qualified loss to the extent that it is paid | 11 |
| under an insurance policy under subsection (a) of Section | 12 |
| 25 of this Act. | 13 |
| (b) The indemnification obligations of the State of | 14 |
| Illinois assumed under Section 30 of this Act shall be reduced | 15 |
| in proportion and be subordinated to any federal | 16 |
| indemnification that covers all or a portion of the State's | 17 |
| obligations. | 18 |
| Section 35. Representation. In furtherance of the State of | 19 |
| Illinois' obligations set forth in subsection (b) of Section 25 | 20 |
| and in Section 30 of this Act, the Attorney General has the | 21 |
| following duties: | 22 |
| (a) In the event that any public liability action covered | 23 |
| under Section 30 of this Act is commenced against the Operator, | 24 |
| the Attorney General shall, upon timely and appropriate notice | 25 |
| to the Attorney General by the Operator, appear on behalf of |
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| the Operator and defend the action. Any such notice must be in | 2 |
| writing, must be mailed within 15 days after the date of | 3 |
| receipt by the Operator of service of process, and must | 4 |
| authorize the Attorney General to represent and defend the | 5 |
| Operator in the action. The delivery of this notice to the | 6 |
| Attorney General constitutes an agreement by the Operator to | 7 |
| cooperate with the Attorney General in defense of the action | 8 |
| and a consent that the Attorney General shall conduct the | 9 |
| defense as the Attorney General deems advisable and in the best | 10 |
| interests of the Operator and the State of Illinois, including | 11 |
| settlement in the Attorney General's discretion. The Operator | 12 |
| may appear in such action through private counsel to respond or | 13 |
| object only to any aspect of a proposed settlement or proposed | 14 |
| court order which would directly affect the day-to-day | 15 |
| operations of the FutureGen Project. In any such action, the | 16 |
| State of Illinois shall pay the court costs and litigation | 17 |
| expenses of defending such action, to the extent approved by | 18 |
| the Attorney General as reasonable, as they are incurred. | 19 |
| (b) In the event that the Attorney General determines | 20 |
| either (i) that so appearing and defending the Operator | 21 |
| involves an actual or potential conflict of interest or (ii) | 22 |
| that the act or omission which gave rise to the claim was not | 23 |
| within the scope of the indemnity as provided in Section 30 of | 24 |
| this Act, the Attorney General shall decline in
writing to | 25 |
| appear or defend or shall promptly take appropriate action to | 26 |
| withdraw as attorney for the Operator. Upon receipt of such |
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| declination or withdrawal by the Attorney General on the basis | 2 |
| of an actual or potential conflict of interest, the Operator | 3 |
| may employ its own attorney to appear and defend, in which | 4 |
| event the State of Illinois shall pay the Operator's court | 5 |
| costs, litigation expenses, and attorneys' fees, to the extent | 6 |
| approved by the Attorney General as reasonable, as they are | 7 |
| incurred.
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| (c) In any action asserted by the Operator or the State of | 9 |
| Illinois to enforce the indemnification obligations of the | 10 |
| State of Illinois as provided in Section 30 of the Act, the | 11 |
| non-prevailing party is responsible for any reasonable court | 12 |
| costs, litigation expenses, and attorneys fees incurred by the | 13 |
| prevailing party. | 14 |
| (d) Court costs and litigation expenses and other costs of | 15 |
| providing a defense, including attorneys' fees, paid or | 16 |
| obligated under this Section, and the costs of indemnification, | 17 |
| including the payment of any final judgment or final settlement
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| under this Section, must be paid by warrant from appropriations | 19 |
| to the Department pursuant to vouchers certified by the | 20 |
| Attorney General.
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| (e) Nothing contained or implied in this Section shall | 22 |
| operate, or be construed or applied, to deprive the State of | 23 |
| Illinois, or the Operator, of any defense otherwise available. | 24 |
| (f) Any judgment subject to State of Illinois | 25 |
| indemnification under this Section is not enforceable against | 26 |
| the Operator, but shall be paid by the State of Illinois in the
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| following manner: Upon receipt of a certified copy of the | 2 |
| judgment, the Attorney General shall review it to determine if | 3 |
| the judgment is (i) final, unreversed, and no longer subject to | 4 |
| appeal and (ii) subject to indemnification under Section 30 of
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| this Act. If the Attorney General determines that it is, then | 6 |
| the Attorney General shall submit a voucher for the amount of | 7 |
| the judgment and any interest thereon to the State of Illinois | 8 |
| Comptroller and the amount must be paid by warrant from | 9 |
| appropriation to the Department to the judgment creditor solely | 10 |
| out of available appropriations. | 11 |
| Section 40. Permitting. The State of Illinois shall issue | 12 |
| to the Operator all necessary and appropriate permits | 13 |
| consistent with State and federal law and corresponding | 14 |
| regulations. The State of Illinois must allow the Operator to | 15 |
| combine applications when appropriate, and the State of | 16 |
| Illinois must otherwise streamline the application process for | 17 |
| timely permit issuance. | 18 |
| Section 43. Tax exemption. An operator is exempt from any | 19 |
| tax imposed by the State of Illinois that is based upon the | 20 |
| nameplate capacity of generating units. | 21 |
| Section 45. Incentives. The State of Illinois has offered | 22 |
| certain incentives to the FutureGen Alliance to make the State | 23 |
| of Illinois the most attractive location for the FutureGen |
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| Project. | 2 |
| Section 50. Jurisdiction. The Court of Claims has | 3 |
| jurisdiction concerning any public liability action arising | 4 |
| under this Act or arising from the operation of the FutureGen | 5 |
| Project, except that a public liability action may be brought | 6 |
| in the circuit court if the cause of action is one of personal | 7 |
| injury or wrongful death and the injury or death was | 8 |
| proximately caused by the storage, escape, release, or
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| migration of the post-injection sequestered gas that was
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| injected during the operation of the FutureGen Project by the
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| FutureGen Alliance, and the circuit court is hereby granted | 12 |
| jurisdiction over these matters. The jurisdiction over civil, | 13 |
| administrative, or other legal processes is not, otherwise, | 14 |
| affected by this Act. | 15 |
| Section 900. The Department of Commerce and Economic | 16 |
| Opportunity Law of the
Civil Administrative Code of Illinois is | 17 |
| 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 | 20 |
| facilities.
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| (a) As used in this Section:
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| "New electric generating facility" means a | 23 |
| newly-constructed electric
generation plant or a newly |
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| constructed generation capacity expansion at an
existing | 2 |
| facility, including the transmission lines and associated | 3 |
| equipment
that transfers electricity from points of supply to | 4 |
| points of delivery, and for
which foundation construction | 5 |
| commenced not sooner than July 1, 2001, which is
designed to | 6 |
| 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 | 10 |
| coal or gases derived
from coal as its primary fuel
source, | 11 |
| and supports the creation of at least 150 new Illinois coal | 12 |
| mining
jobs; or
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| (2) is funded through a federal Department of Energy | 14 |
| grant before December 31, 2010
2007 and supports the
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| creation of
Illinois
coal-mining jobs; or | 16 |
| (3) uses coal gasification or integrated | 17 |
| gasification-combined cycle
units that generate | 18 |
| 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 | 21 |
| gasification facility that generates chemical feedstocks or | 22 |
| transportation fuels derived from coal (which may include, but | 23 |
| are not limited to, methane, methanol, and nitrogen | 24 |
| fertilizer), that supports the creation or retention of | 25 |
| Illinois coal-mining jobs, and that qualifies for financial | 26 |
| assistance from the Department before December 31, 2010
2006 . A |
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| new gasification facility does not include a pilot project | 2 |
| located within Jefferson County or within a county adjacent to | 3 |
| Jefferson County for synthetic natural gas from coal.
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| "New facility" means a new electric generating facility or | 5 |
| a new gasification facility. A new facility does not include a | 6 |
| pilot project located within Jefferson County or within a | 7 |
| county adjacent to Jefferson County for synthetic natural gas | 8 |
| from coal.
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| "Eligible business" means an entity that proposes to | 10 |
| construct a new facility and that has applied to the Department | 11 |
| to receive financial
assistance pursuant to this Section.
With | 12 |
| respect to use and occupation taxes, wherever there is a | 13 |
| reference to
taxes, that reference means only those taxes paid | 14 |
| 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 | 18 |
| assistance to eligible businesses for new
facilities from funds | 19 |
| appropriated by the General Assembly as further provided
in | 20 |
| this Section.
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| An eligible business seeking qualification for financial | 22 |
| assistance for
a new facility, for purposes of this Section | 23 |
| only, shall
apply to the Department in the manner specified by | 24 |
| the Department. Any
projections provided by an eligible | 25 |
| business as part of the application shall
be independently | 26 |
| 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 | 3 |
| facility
for which financial assistance is sought;
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| (2) copies of documentation deemed
acceptable by the | 5 |
| Department establishing either (i) the total State
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| occupation
and use taxes paid on Illinois-mined coal used | 7 |
| at the new facility for a minimum of 4 preceding calendar | 8 |
| quarters or (ii)
the projected amount of State occupation | 9 |
| and use taxes paid on Illinois-mined
coal used at the new | 10 |
| facility in 4 calendar year quarters
after completion of | 11 |
| the new facility.
Bond proceeds subject to this Section | 12 |
| shall not be allocated to an
eligible business until the | 13 |
| eligible business has demonstrated the revenue
stream | 14 |
| sufficient to service the debt on the bonds; and
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| (3) the actual or projected amount of capital | 16 |
| investment by the
eligible business
in the new facility.
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| The Department shall determine the maximum amount of | 18 |
| financial
assistance for eligible businesses in accordance | 19 |
| with this paragraph. The
Department shall not provide financial | 20 |
| assistance from general obligation bond
funds to any eligible | 21 |
| business
unless it receives a written certification from the | 22 |
| Director of the
Bureau of
the Budget
(now Governor's Office of | 23 |
| Management and Budget)
that 80% of the State occupation and use | 24 |
| tax receipts for a minimum
of the
preceding 4 calendar quarters | 25 |
| for all eligible businesses or as included in
projections on | 26 |
| approved applications by eligible businesses equal or exceed
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| 110% of the maximum annual debt service required with respect | 2 |
| to general
obligation bonds issued for that purpose. The | 3 |
| Department may provide
financial assistance not to exceed the | 4 |
| amount of State general obligation
debt calculated as above, | 5 |
| the amount of actual or projected capital
investment in the | 6 |
| facility, or $100,000,000, whichever is less.
Financial | 7 |
| assistance received pursuant to this Section may be used
for | 8 |
| capital facilities consisting of buildings, structures, | 9 |
| durable equipment,
and land at the new facility. Subject to the | 10 |
| provisions
of the agreement covering the financial assistance, | 11 |
| a portion of the financial
assistance may be required to be | 12 |
| repaid to the State if certain conditions for
the governmental | 13 |
| 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 | 16 |
| Illinois-mined coal
purchased during
the previous month for use | 17 |
| in the new facility, the
purchase price of that coal, the | 18 |
| amount of State
occupation and use taxes paid on that purchase | 19 |
| to the seller of the
Illinois-mined coal, and
such other
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| information as that Department may reasonably require. In sales | 21 |
| of
Illinois-mined coal between related parties, the purchase | 22 |
| price of the coal
must have been determined in an arms-length | 23 |
| transaction. The report shall be
filed with the Illinois | 24 |
| Department of Revenue on or before the 20th day of
each month | 25 |
| on a form provided by that Department. However, no report
need | 26 |
| be filed by an eligible business in a month when it made
no |
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| reportable purchases of coal in the previous month.
The | 2 |
| Illinois Department of Revenue shall provide a summary of such | 3 |
| reports to
the
Governor's Office of Management and Budget.
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| Upon granting financial assistance to an eligible | 5 |
| business, the Department
shall certify the name of the eligible | 6 |
| business to the Illinois Department of
Revenue. Beginning with | 7 |
| the receipt of the first report of State occupation
and use | 8 |
| taxes paid by an
eligible business and continuing for a 25-year | 9 |
| period, the Illinois Department
of Revenue shall each month pay | 10 |
| into the Energy Infrastructure Fund 80% of the
net revenue | 11 |
| realized from the 6.25% general rate on the selling price of
| 12 |
| Illinois-mined coal that was sold to an eligible business.
| 13 |
| (Source: P.A. 93-167, eff. 7-10-03; 93-1064, eff. 1-13-05; | 14 |
| 94-65, eff. 6-21-05; 94-1030, eff. 7-14-06.)
| 15 |
| Section 905. The Illinois Enterprise Zone Act is amended by | 16 |
| changing Section 5.5 as follows:
| 17 |
| (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
| 18 |
| Sec. 5.5. High Impact Business.
| 19 |
| (a) In order to respond to unique opportunities to assist | 20 |
| in the
encouragement, development, growth and expansion of the | 21 |
| private sector through
large scale investment and development | 22 |
| projects, the Department is authorized
to receive and approve | 23 |
| applications for the designation of "High Impact
Businesses" in | 24 |
| Illinois subject to the following conditions:
|
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| (1) such applications may be submitted at any time | 2 |
| during the year;
| 3 |
| (2) such business is not located, at the time of | 4 |
| designation, in
an enterprise zone designated pursuant to | 5 |
| this Act;
| 6 |
| (3) the business intends to do one or more of the | 7 |
| following:
| 8 |
| (A) the business intends to make a minimum | 9 |
| investment of
$12,000,000 which will be placed in | 10 |
| service in qualified property and
intends to create 500 | 11 |
| full-time equivalent jobs at a designated location
in | 12 |
| Illinois or intends to make a minimum investment of | 13 |
| $30,000,000 which
will be placed in service in | 14 |
| qualified property and intends to retain 1,500
| 15 |
| full-time jobs at a designated location in Illinois.
| 16 |
| The business must certify in writing that the | 17 |
| investments would not be
placed in service in qualified | 18 |
| property and the job creation or job
retention would | 19 |
| not occur without the tax credits and exemptions set | 20 |
| forth
in subsection (b) of this Section. The terms | 21 |
| "placed in service" and
"qualified property" have the | 22 |
| same meanings as described in subsection (h)
of Section | 23 |
| 201 of the Illinois Income Tax Act; or
| 24 |
| (B) the business intends to establish a new | 25 |
| electric generating
facility at a designated location | 26 |
| in Illinois. "New electric generating
facility", for |
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| purposes of this Section, means a newly-constructed
| 2 |
| electric
generation plant
or a newly-constructed | 3 |
| generation capacity expansion at an existing electric
| 4 |
| generation
plant, including the transmission lines and | 5 |
| associated
equipment that transfers electricity from | 6 |
| points of supply to points of
delivery, and for which | 7 |
| such new foundation construction commenced not sooner
| 8 |
| than July 1,
2001. Such facility shall be designed to | 9 |
| provide baseload electric
generation and shall operate | 10 |
| on a continuous basis throughout the year;
and (i) | 11 |
| shall have an aggregate rated generating capacity of at | 12 |
| least 1,000
megawatts for all new units at one site if | 13 |
| it uses natural gas as its primary
fuel and foundation | 14 |
| construction of the facility is commenced on
or before | 15 |
| December 31, 2004, or shall have an aggregate rated | 16 |
| generating
capacity of at least 400 megawatts for all | 17 |
| new units at one site if it uses
coal or gases derived | 18 |
| from coal
as its primary fuel and
shall support the | 19 |
| creation of at least 150 new Illinois coal mining jobs, | 20 |
| or
(ii) shall be funded through a federal Department of | 21 |
| Energy grant before December 31, 2010
July 1, 2006 and | 22 |
| shall support the creation of Illinois
coal-mining
| 23 |
| jobs, or (iii) shall use coal gasification or | 24 |
| integrated gasification-combined cycle units
that | 25 |
| generate
electricity or chemicals, or both, and shall | 26 |
| support the creation of Illinois
coal-mining
jobs.
The
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| business must certify in writing that the investments | 2 |
| necessary to establish
a new electric generating | 3 |
| facility would not be placed in service and the
job | 4 |
| creation in the case of a coal-fueled plant
would not | 5 |
| occur without the tax credits and exemptions set forth | 6 |
| in
subsection (b-5) of this Section. The term "placed | 7 |
| in service" has
the same meaning as described in | 8 |
| subsection
(h) of Section 201 of the Illinois Income | 9 |
| Tax Act; or
| 10 |
| (B-5) the business intends to establish a new | 11 |
| gasification
facility at a designated location in | 12 |
| Illinois. As used in this Section, "new gasification | 13 |
| facility" means a newly constructed coal gasification | 14 |
| facility that generates chemical feedstocks or | 15 |
| transportation fuels derived from coal (which may | 16 |
| include, but are not limited to, methane, methanol, and | 17 |
| nitrogen fertilizer), that supports the creation or | 18 |
| retention of Illinois coal-mining jobs, and that | 19 |
| qualifies for financial assistance from the Department | 20 |
| before December 31, 2010
2006 . A new gasification | 21 |
| facility does not include a pilot project located | 22 |
| within Jefferson County or within a county adjacent to | 23 |
| Jefferson County for synthetic natural gas from coal; | 24 |
| or
| 25 |
| (C) the business intends to establish
production | 26 |
| operations at a new coal mine, re-establish production |
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| operations at
a closed coal mine, or expand production | 2 |
| at an existing coal mine
at a designated location in | 3 |
| Illinois not sooner than July 1, 2001;
provided that | 4 |
| the
production operations result in the creation of 150 | 5 |
| new Illinois coal mining
jobs as described in | 6 |
| subdivision (a)(3)(B) of this Section, and further
| 7 |
| provided that the coal extracted from such mine is | 8 |
| utilized as the predominant
source for a new electric | 9 |
| generating facility.
The business must certify in | 10 |
| writing that the
investments necessary to establish a | 11 |
| new, expanded, or reopened coal mine would
not
be | 12 |
| placed in service and the job creation would not
occur | 13 |
| without the tax credits and exemptions set forth in | 14 |
| subsection (b-5) of
this Section. The term "placed in | 15 |
| service" has
the same meaning as described in | 16 |
| subsection (h) of Section 201 of the
Illinois Income | 17 |
| Tax Act; or
| 18 |
| (D) the business intends to construct new | 19 |
| transmission facilities or
upgrade existing | 20 |
| transmission facilities at designated locations in | 21 |
| Illinois,
for which construction commenced not sooner | 22 |
| than July 1, 2001. For the
purposes of this Section, | 23 |
| "transmission facilities" means transmission lines
| 24 |
| with a voltage rating of 115 kilovolts or above, | 25 |
| including associated
equipment, that transfer | 26 |
| electricity from points of supply to points of
delivery |
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| and that transmit a majority of the electricity | 2 |
| generated by a new
electric generating facility | 3 |
| designated as a High Impact Business in accordance
with | 4 |
| this Section. The business must certify in writing that | 5 |
| the investments
necessary to construct new | 6 |
| transmission facilities or upgrade existing
| 7 |
| transmission facilities would not be placed in service
| 8 |
| without the tax credits and exemptions set forth in | 9 |
| subsection (b-5) of this
Section. The term "placed in | 10 |
| service" has the
same meaning as described in | 11 |
| subsection (h) of Section 201 of the Illinois
Income | 12 |
| Tax Act; and
| 13 |
| (4) no later than 90 days after an application is | 14 |
| submitted, the
Department shall notify the applicant of the | 15 |
| Department's determination of
the qualification of the | 16 |
| proposed High Impact Business under this Section.
| 17 |
| (b) Businesses designated as High Impact Businesses | 18 |
| pursuant to
subdivision (a)(3)(A) of this Section shall qualify | 19 |
| for the credits and
exemptions described in the
following Acts: | 20 |
| Section 9-222 and Section 9-222.1A of the Public Utilities
Act,
| 21 |
| subsection (h)
of Section 201 of the Illinois Income Tax Act,
| 22 |
| and Section 1d of
the
Retailers' Occupation Tax Act; provided | 23 |
| that these credits and
exemptions
described in these Acts shall | 24 |
| not be authorized until the minimum
investments set forth in | 25 |
| subdivision (a)(3)(A) of this
Section have been placed in
| 26 |
| service in qualified properties and, in the case of the |
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| exemptions
described in the Public Utilities Act and Section 1d | 2 |
| of the Retailers'
Occupation Tax Act, the minimum full-time | 3 |
| equivalent jobs or full-time jobs set
forth in subdivision | 4 |
| (a)(3)(A) of this Section have been
created or retained.
| 5 |
| Businesses designated as High Impact Businesses under
this | 6 |
| Section shall also
qualify for the exemption described in | 7 |
| Section 5l of the Retailers' Occupation
Tax Act. The credit | 8 |
| provided in subsection (h) of Section 201 of the Illinois
| 9 |
| Income Tax Act shall be applicable to investments in qualified | 10 |
| property as set
forth in subdivision (a)(3)(A) of this Section.
| 11 |
| (b-5) Businesses designated as High Impact Businesses | 12 |
| pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), | 13 |
| and (a)(3)(D) of this Section shall qualify
for the credits and | 14 |
| exemptions described in the following Acts: Section 51 of
the | 15 |
| Retailers' Occupation Tax Act, Section 9-222 and Section | 16 |
| 9-222.1A of the
Public Utilities Act, and subsection (h) of | 17 |
| Section 201 of the Illinois Income
Tax Act; however, the | 18 |
| credits and exemptions authorized under Section 9-222 and
| 19 |
| Section 9-222.1A of the Public Utilities Act, and subsection | 20 |
| (h) of Section 201
of the Illinois Income Tax Act shall not be | 21 |
| authorized until the new electric
generating facility, the new | 22 |
| gasification facility, the new transmission facility, or the | 23 |
| new, expanded, or
reopened coal mine is operational,
except | 24 |
| that a new electric generating facility whose primary fuel | 25 |
| source is
natural gas is eligible only for the exemption under | 26 |
| Section 5l of the
Retailers' Occupation Tax Act.
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| (c) High Impact Businesses located in federally designated | 2 |
| foreign trade
zones or sub-zones are also eligible for | 3 |
| additional credits, exemptions and
deductions as described in | 4 |
| the following Acts: Section 9-221 and Section
9-222.1 of the | 5 |
| Public
Utilities Act; and subsection (g) of Section 201, and | 6 |
| Section 203
of the Illinois Income Tax Act.
| 7 |
| (d) Existing Illinois businesses which apply for | 8 |
| designation as a
High Impact Business must provide the | 9 |
| Department with the prospective plan
for which 1,500 full-time | 10 |
| jobs would be eliminated in the event that the
business is not | 11 |
| designated.
| 12 |
| (e) New proposed facilities which apply for designation as | 13 |
| High Impact
Business must provide the Department with proof of | 14 |
| alternative non-Illinois
sites which would receive the | 15 |
| proposed investment and job creation in the
event that the | 16 |
| business is not designated as a High Impact Business.
| 17 |
| (f) In the event that a business is designated a High | 18 |
| Impact Business
and it is later determined after reasonable | 19 |
| notice and an opportunity for a
hearing as provided under the | 20 |
| Illinois Administrative Procedure Act, that
the business would | 21 |
| have placed in service in qualified property the
investments | 22 |
| and created or retained the requisite number of jobs without
| 23 |
| the benefits of the High Impact Business designation, the | 24 |
| Department shall
be required to immediately revoke the | 25 |
| designation and notify the Director
of the Department of | 26 |
| Revenue who shall begin proceedings to recover all
wrongfully |
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| exempted State taxes with interest. The business shall also be
| 2 |
| ineligible for all State funded Department programs for a | 3 |
| period of 10 years.
| 4 |
| (g) The Department shall revoke a High Impact Business | 5 |
| designation if
the participating business fails to comply with | 6 |
| the terms and conditions of
the designation.
| 7 |
| (h) Prior to designating a business, the Department shall | 8 |
| provide the
members of the General Assembly and Commission on | 9 |
| Government Forecasting and Accountability
with a report | 10 |
| setting forth the terms and conditions of the designation and
| 11 |
| guarantees that have been received by the Department in | 12 |
| relation to the
proposed business being designated.
| 13 |
| (Source: P.A. 93-1064, eff. 1-13-05; 93-1067, eff. 1-15-05; | 14 |
| 94-65, eff. 6-21-05.)
| 15 |
| Section 910. The Court of Claims Act is amended by adding | 16 |
| Section 8.5 as follows: | 17 |
| (705 ILCS 505/8.5 new)
| 18 |
| Sec. 8.5. Jurisdiction concerning the FutureGen Project. | 19 |
| The Court of Claims has jurisdiction
concerning any public | 20 |
| liability action, as defined in the Clean
Coal FutureGen for | 21 |
| Illinois Act, arising under that Act or arising from the | 22 |
| operation of the
FutureGen Project, except that a public | 23 |
| liability action may be brought in the circuit court if the | 24 |
| cause of action is one of personal injury or wrongful death and |
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| the injury or death was proximately caused by the storage, | 2 |
| escape, release, or
migration of the post-injection | 3 |
| sequestered gas that was
injected during the operation of the | 4 |
| FutureGen Project by the
FutureGen Alliance, and the circuit | 5 |
| court is
granted jurisdiction over these matters. | 6 |
| Section 915. The State Lawsuit Immunity Act is amended by | 7 |
| changing Section 1 as follows: | 8 |
| (745 ILCS 5/1) (from Ch. 127, par. 801)
| 9 |
| Sec. 1. Except as provided in the Illinois Public Labor | 10 |
| Relations
Act, the Court of Claims Act, and the State Officials | 11 |
| and
Employees Ethics Act,
or Section 1.5 of this Act, and, | 12 |
| except as provided in and to the extent provided in the Clean | 13 |
| Coal FutureGen for Illinois Act, the State of Illinois shall | 14 |
| not be made a
defendant or party in any court.
| 15 |
| (Source: P.A. 93-414, eff. 1-1-04; 93-615, eff. 11-19-03; | 16 |
| revised 12-19-03.)
| 17 |
| Section 997. Severability. The provisions of this Act are | 18 |
| severable under Section 1.31 of the Statute on Statutes. | 19 |
| Section 998. Repeal. This Act is repealed on December 31, | 20 |
| 2010 unless the FutureGen Project has been located at either | 21 |
| the Mattoon or Tuscola site in Illinois.
| 22 |
| Section 999. Effective date. This Act takes effect upon |
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| becoming law. |
|