Full Text of SB2191 98th General Assembly
SB2191 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB2191 Introduced 2/15/2013, by Sen. Mike Jacobs SYNOPSIS AS INTRODUCED: |
| 20 ILCS 3501/825-65 | | 20 ILCS 3855/1-10 | |
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Amends the Illinois Finance Authority Act and the Illinois Power Agency Act. Provides that under those Acts energy efficiency measures include a reduction in the amount of heat rate. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning energy.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Finance Authority Act is amended by | 5 | | changing Section 825-65 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 | 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 , or heat | 6 | | rate required to achieve a given end use, consistent with | 7 | | Section 1-10 of the Illinois Power Agency Act. | 8 | | (iv) "Renewable Energy Project" means (A) a project | 9 | | that uses renewable energy resources, as defined in Section | 10 | | 1-10 of the Illinois Power Agency Act; (B) a project that | 11 | | uses environmentally preferable technologies and practices | 12 | | that result in improvements to the production of renewable | 13 | | fuels, including but not limited to, cellulosic | 14 | | conversion, water and energy conservation, fractionation, | 15 | | alternative feedstocks, or reduced green house gas | 16 | | emissions; (C) transmission lines and associated equipment | 17 | | that transfer electricity from points of supply to points | 18 | | of delivery for projects described in this subsection (b); | 19 | | or (D) projects that use technology for the storage of | 20 | | renewable energy, including, without limitation, the use | 21 | | of battery or electrochemical storage technology for | 22 | | mobile or stationary applications. | 23 | | (c) Creation of reserve funds. The Authority may establish | 24 | | and maintain one
or more reserve funds to enhance bonds issued | 25 | | by the Authority for a Clean Coal Project, a Coal Project, an | 26 | | Energy Efficiency Project, or a Renewable
Energy Project.
There |
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| 1 | | may be one or more accounts in these reserve funds in which | 2 | | there may be
deposited: | 3 | | (1) any proceeds of the bonds issued by the Authority | 4 | | required to
be deposited therein by the terms of any | 5 | | contract between the Authority and its
bondholders or any | 6 | | resolution of the Authority; | 7 | | (2) any other moneys or funds of the Authority that it | 8 | | may
determine to deposit therein from any other source; and | 9 | | (3) any other moneys or funds made available to the | 10 | | Authority.
Subject to the terms of any pledge to the owners | 11 | | of any bonds, moneys in any
reserve fund may be held and | 12 | | applied to the payment of principal, premium, if
any, and | 13 | | interest of such bonds. | 14 | | (d) Powers and duties. The Authority has the power: | 15 | | (1) To issue bonds in one or more series pursuant to | 16 | | one or more
resolutions of the Authority for any Clean Coal | 17 | | Project, Coal Project, Energy Efficiency Project, or | 18 | | Renewable Energy Project authorized
under this Section, | 19 | | within the authorization set forth in subsection (e). | 20 | | (2) To provide for the funding of any reserves or other | 21 | | funds or
accounts deemed necessary by the Authority in | 22 | | connection with any bonds issued
by the Authority. | 23 | | (3) To pledge any funds of the Authority or funds made | 24 | | available to
the Authority that may be applied to such | 25 | | purpose as security for any bonds or
any guarantees, | 26 | | letters of credit, insurance contracts or similar credit
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| 1 | | support
or liquidity instruments securing the bonds. | 2 | | (4) To enter into agreements or contracts with third | 3 | | parties,
whether public or private, including, without | 4 | | limitation, the United States of
America, the State or any | 5 | | department or agency thereof, to obtain any
| 6 | | appropriations, grants, loans or guarantees that are | 7 | | deemed necessary or
desirable by the Authority. Any such | 8 | | guarantee, agreement or contract may
contain terms and | 9 | | provisions necessary or desirable in connection with the
| 10 | | program, subject to the requirements established by the | 11 | | Act. | 12 | | (5) To exercise such other powers as are necessary or | 13 | | incidental to
the foregoing. | 14 | | (e) Clean Coal Project, Coal Project, Energy Efficiency | 15 | | Project, and Renewable Energy Project bond authorization and | 16 | | financing limits. In
addition
to any other bonds authorized to | 17 | | be issued under
Sections 801-40(w), 825-60, 830-25
and 845-5, | 18 | | the Authority may have outstanding, at any time, bonds for the
| 19 | | purpose
enumerated in this
Section 825-65 in an aggregate | 20 | | principal amount that shall not
exceed $3,000,000,000, subject | 21 | | to the following limitations: (i) up to $300,000,000 may be | 22 | | issued to
finance projects, as described in clause (C) of | 23 | | subsection (b)(i) and clause (C) of subsection (b)(iv) of this | 24 | | Section 825-65; (ii) up to $500,000,000 may be issued to
| 25 | | finance projects, as described in clauses (D) and (E) of | 26 | | subsection (b)(i) of this Section 825-65; (iii) up to |
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| 1 | | $2,000,000,000 may
be issued to finance Clean Coal Projects, as | 2 | | described in clauses (A) and (B) of subsection (b)(i) of this | 3 | | Section 825-65 and Coal Projects, as described in subsection | 4 | | (b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000 | 5 | | may be issued to finance Energy Efficiency Projects, as | 6 | | described in subsection (b)(iii) of this Section 825-65 and | 7 | | Renewable Energy Projects, as described in clauses (A), (B), | 8 | | and (D) of subsection (b)(iii) of this Section 825-65. An | 9 | | application for a loan
financed from bond proceeds from a | 10 | | borrower or its affiliates for a Clean Coal Project, a Coal | 11 | | Project, Energy Efficiency Project, or a Renewable
Energy | 12 | | Project may not be approved by the Authority for an amount in | 13 | | excess
of $450,000,000 for any borrower or its affiliates. | 14 | | These bonds shall not
constitute an indebtedness or obligation | 15 | | of the State of Illinois and it shall
be plainly stated on the | 16 | | face of each bond that it does not constitute an
indebtedness | 17 | | or obligation of the State of Illinois, but is payable solely | 18 | | from
the revenues, income or other assets of the Authority | 19 | | pledged therefor. | 20 | | (f) The bonding authority granted under this Section is in | 21 | | addition to and not limited by the provisions of Section 845-5. | 22 | | (Source: P.A. 95-470, eff. 8-27-07; 96-103, eff. 1-1-10; | 23 | | 96-817, eff. 1-1-10.) | 24 | | Section 10. The Illinois Power Agency Act is amended by | 25 | | changing Section 1-10 as follows:
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| 1 | | (20 ILCS 3855/1-10)
| 2 | | Sec. 1-10. Definitions. | 3 | | "Agency" means the Illinois Power Agency. | 4 | | "Agency loan agreement" means any agreement pursuant to | 5 | | which the Illinois Finance Authority agrees to loan the | 6 | | proceeds of revenue bonds issued with respect to a project to | 7 | | the Agency upon terms providing for loan repayment installments | 8 | | at least sufficient to pay when due all principal of, interest | 9 | | and premium, if any, on those revenue bonds, and providing for | 10 | | maintenance, insurance, and other matters in respect of the | 11 | | project. | 12 | | "Authority" means the Illinois Finance Authority. | 13 | | "Clean coal facility" means an electric generating | 14 | | facility that uses primarily coal as a feedstock and that | 15 | | captures and sequesters carbon dioxide emissions at the | 16 | | following levels: at least 50% of the total carbon dioxide | 17 | | emissions that the facility would otherwise emit if, at the | 18 | | time construction commences, the facility is scheduled to | 19 | | commence operation before 2016, at least 70% of the total | 20 | | carbon dioxide emissions that the facility would otherwise emit | 21 | | if, at the time construction commences, the facility is | 22 | | scheduled to commence operation during 2016 or 2017, and at | 23 | | least 90% of the total carbon dioxide emissions that the | 24 | | facility would otherwise emit if, at the time construction | 25 | | commences, the facility is scheduled to commence operation |
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| 1 | | after 2017. The power block of the clean coal facility shall | 2 | | not exceed allowable emission rates for sulfur dioxide, | 3 | | nitrogen oxides, carbon monoxide, particulates and mercury for | 4 | | a natural gas-fired combined-cycle facility the same size as | 5 | | and in the same location as the clean coal facility at the time | 6 | | the clean coal facility obtains an approved air permit. All | 7 | | coal used by a clean coal facility shall have high volatile | 8 | | bituminous rank and greater than 1.7 pounds of sulfur per | 9 | | million btu content, unless the clean coal facility does not | 10 | | use gasification technology and was operating as a conventional | 11 | | coal-fired electric generating facility on June 1, 2009 (the | 12 | | effective date of Public Act 95-1027). | 13 | | "Clean coal SNG brownfield facility" means a facility that | 14 | | (1) has commenced construction by July 1, 2015 on an urban | 15 | | brownfield site in a municipality with at least 1,000,000 | 16 | | residents; (2) uses a gasification process to produce | 17 | | substitute natural gas; (3) uses coal as at least 50% of the | 18 | | total feedstock over the term of any sourcing agreement with a | 19 | | utility and the remainder of the feedstock may be either | 20 | | petroleum coke or coal, with all such coal having a high | 21 | | bituminous rank and greater than 1.7 pounds of sulfur per | 22 | | million Btu content unless the facility reasonably determines
| 23 | | that it is necessary to use additional petroleum coke to
| 24 | | deliver additional consumer savings, in which case the
facility | 25 | | shall use coal for at least 35% of the total
feedstock over the | 26 | | term of any sourcing agreement; and (4) captures and sequesters |
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| 1 | | at least 85% of the total carbon dioxide emissions that the | 2 | | facility would otherwise emit. | 3 | | "Clean coal SNG facility" means a facility that uses a | 4 | | gasification process to produce substitute natural gas, that | 5 | | sequesters at least 90% of the total carbon dioxide emissions | 6 | | that the facility would otherwise emit, that uses at least 90% | 7 | | coal as a feedstock, with all such coal having a high | 8 | | bituminous rank and greater than 1.7 pounds of sulfur per | 9 | | million btu content, and that has a valid and effective permit | 10 | | to construct emission sources and air pollution control | 11 | | equipment and approval with respect to the federal regulations | 12 | | for Prevention of Significant Deterioration of Air Quality | 13 | | (PSD) for the plant pursuant to the federal Clean Air Act; | 14 | | provided, however, a clean coal SNG brownfield facility shall | 15 | | not be a clean coal SNG facility. | 16 | | "Commission" means the Illinois Commerce Commission. | 17 | | "Costs incurred in connection with the development and | 18 | | construction of a facility" means: | 19 | | (1) the cost of acquisition of all real property, | 20 | | fixtures, and improvements in connection therewith and | 21 | | equipment, personal property, and other property, rights, | 22 | | and easements acquired that are deemed necessary for the | 23 | | operation and maintenance of the facility; | 24 | | (2) financing costs with respect to bonds, notes, and | 25 | | other evidences of indebtedness of the Agency; | 26 | | (3) all origination, commitment, utilization, |
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| 1 | | facility, placement, underwriting, syndication, credit | 2 | | enhancement, and rating agency fees; | 3 | | (4) engineering, design, procurement, consulting, | 4 | | legal, accounting, title insurance, survey, appraisal, | 5 | | escrow, trustee, collateral agency, interest rate hedging, | 6 | | interest rate swap, capitalized interest, contingency, as | 7 | | required by lenders, and other financing costs, and other | 8 | | expenses for professional services; and | 9 | | (5) the costs of plans, specifications, site study and | 10 | | investigation, installation, surveys, other Agency costs | 11 | | and estimates of costs, and other expenses necessary or | 12 | | incidental to determining the feasibility of any project, | 13 | | together with such other expenses as may be necessary or | 14 | | incidental to the financing, insuring, acquisition, and | 15 | | construction of a specific project and starting up, | 16 | | commissioning, and placing that project in operation. | 17 | | "Department" means the Department of Commerce and Economic | 18 | | Opportunity. | 19 | | "Director" means the Director of the Illinois Power Agency. | 20 | | "Demand-response" means measures that decrease peak | 21 | | electricity demand or shift demand from peak to off-peak | 22 | | periods. | 23 | | "Distributed renewable energy generation device" means a | 24 | | device that is: | 25 | | (1) powered by wind, solar thermal energy, | 26 | | photovoltaic cells and panels, biodiesel, crops and |
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| 1 | | untreated and unadulterated organic waste biomass, tree | 2 | | waste, and hydropower that does not involve new | 3 | | construction or significant expansion of hydropower dams; | 4 | | (2) interconnected at the distribution system level of | 5 | | either an electric utility as defined in this Section, an | 6 | | alternative retail electric supplier as defined in Section | 7 | | 16-102 of the Public Utilities Act, a municipal utility as | 8 | | defined in Section 3-105 of the Public Utilities Act, or a | 9 | | rural electric cooperative as defined in Section 3-119 of | 10 | | the Public Utilities Act; | 11 | | (3) located on the customer side of the customer's | 12 | | electric meter and is primarily used to offset that | 13 | | customer's electricity load; and | 14 | | (4) limited in nameplate capacity to no more than 2,000 | 15 | | kilowatts. | 16 | | "Energy efficiency" means measures that reduce the amount | 17 | | of electricity , or natural gas , or heat rate required to | 18 | | achieve a given end use. | 19 | | "Electric utility" has the same definition as found in | 20 | | Section 16-102 of the Public Utilities Act. | 21 | | "Facility" means an electric generating unit or a | 22 | | co-generating unit that produces electricity along with | 23 | | related equipment necessary to connect the facility to an | 24 | | electric transmission or distribution system. | 25 | | "Governmental aggregator" means one or more units of local | 26 | | government that individually or collectively procure |
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| 1 | | electricity to serve residential retail electrical loads | 2 | | located within its or their jurisdiction. | 3 | | "Local government" means a unit of local government as | 4 | | defined in Section 1 of Article VII of the Illinois | 5 | | Constitution. | 6 | | "Municipality" means a city, village, or incorporated | 7 | | town. | 8 | | "Person" means any natural person, firm, partnership, | 9 | | corporation, either domestic or foreign, company, association, | 10 | | limited liability company, joint stock company, or association | 11 | | and includes any trustee, receiver, assignee, or personal | 12 | | representative thereof. | 13 | | "Project" means the planning, bidding, and construction of | 14 | | a facility. | 15 | | "Public utility" has the same definition as found in | 16 | | Section 3-105 of the Public Utilities Act. | 17 | | "Real property" means any interest in land together with | 18 | | all structures, fixtures, and improvements thereon, including | 19 | | lands under water and riparian rights, any easements, | 20 | | covenants, licenses, leases, rights-of-way, uses, and other | 21 | | interests, together with any liens, judgments, mortgages, or | 22 | | other claims or security interests related to real property. | 23 | | "Renewable energy credit" means a tradable credit that | 24 | | represents the environmental attributes of a certain amount of | 25 | | energy produced from a renewable energy resource. | 26 | | "Renewable energy resources" includes energy and its |
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| 1 | | associated renewable energy credit or renewable energy credits | 2 | | from wind, solar thermal energy, photovoltaic cells and panels, | 3 | | biodiesel, anaerobic digestion, crops and untreated and | 4 | | unadulterated organic waste biomass, tree waste, hydropower | 5 | | that does not involve new construction or significant expansion | 6 | | of hydropower dams, and other alternative sources of | 7 | | environmentally preferable energy. For purposes of this Act, | 8 | | landfill gas produced in the State is considered a renewable | 9 | | energy resource. "Renewable energy resources" does not include | 10 | | the incineration or burning of tires, garbage, general | 11 | | household, institutional, and commercial waste, industrial | 12 | | lunchroom or office waste, landscape waste other than tree | 13 | | waste, railroad crossties, utility poles, or construction or | 14 | | demolition debris, other than untreated and unadulterated | 15 | | waste wood. | 16 | | "Revenue bond" means any bond, note, or other evidence of | 17 | | indebtedness issued by the Authority, the principal and | 18 | | interest of which is payable solely from revenues or income | 19 | | derived from any project or activity of the Agency. | 20 | | "Sequester" means permanent storage of carbon dioxide by | 21 | | injecting it into a saline aquifer, a depleted gas reservoir, | 22 | | or an oil reservoir, directly or through an enhanced oil | 23 | | recovery process that may involve intermediate storage, | 24 | | regardless of whether these activities are conducted by a clean | 25 | | coal facility, a clean coal SNG facility, a clean coal SNG | 26 | | brownfield facility, or a party with which a clean coal |
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| 1 | | facility, clean coal SNG facility, or clean coal SNG brownfield | 2 | | facility has contracted for such purposes. | 3 | | "Sourcing agreement" means (i) in the case of an electric | 4 | | utility, an agreement between the owner of a clean coal | 5 | | facility and such electric utility, which agreement shall have | 6 | | terms and conditions meeting the requirements of paragraph (3) | 7 | | of subsection (d) of Section 1-75, (ii) in the case of an | 8 | | alternative retail electric supplier, an agreement between the | 9 | | owner of a clean coal facility and such alternative retail | 10 | | electric supplier, which agreement shall have terms and | 11 | | conditions meeting the requirements of Section 16-115(d)(5) of | 12 | | the Public Utilities Act, and (iii) in case of a gas utility, | 13 | | an agreement between the owner of a clean coal SNG brownfield | 14 | | facility and the gas utility, which agreement shall have the | 15 | | terms and conditions meeting the requirements of subsection | 16 | | (h-1) of Section 9-220 of the Public Utilities Act. | 17 | | "Substitute natural gas" or "SNG" means a gas manufactured | 18 | | by gasification of hydrocarbon feedstock, which is | 19 | | substantially interchangeable in use and distribution with | 20 | | conventional natural gas. | 21 | | "Total resource cost test" or "TRC test" means a standard | 22 | | that is met if, for an investment in energy efficiency or | 23 | | demand-response measures, the benefit-cost ratio is greater | 24 | | than one. The benefit-cost ratio is the ratio of the net | 25 | | present value of the total benefits of the program to the net | 26 | | present value of the total costs as calculated over the |
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| 1 | | lifetime of the measures. A total resource cost test compares | 2 | | the sum of avoided electric utility costs, representing the | 3 | | benefits that accrue to the system and the participant in the | 4 | | delivery of those efficiency measures, as well as other | 5 | | quantifiable societal benefits, including avoided natural gas | 6 | | utility costs, to the sum of all incremental costs of end-use | 7 | | measures that are implemented due to the program (including | 8 | | both utility and participant contributions), plus costs to | 9 | | administer, deliver, and evaluate each demand-side program, to | 10 | | quantify the net savings obtained by substituting the | 11 | | demand-side program for supply resources. In calculating | 12 | | avoided costs of power and energy that an electric utility | 13 | | would otherwise have had to acquire, reasonable estimates shall | 14 | | be included of financial costs likely to be imposed by future | 15 | | regulations and legislation on emissions of greenhouse gases.
| 16 | | (Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; | 17 | | 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10; 97-96, eff. | 18 | | 7-13-11; 97-239, eff. 8-2-11; 97-491, eff. 8-22-11; 97-616, | 19 | | eff. 10-26-11; 97-813, eff. 7-13-12.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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