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90_SB0250sam001 LRB9000888PTcwam 1 AMENDMENT TO SENATE BILL 250 2 AMENDMENT NO. . Amend Senate Bill 250 by replacing 3 the title with the following: 4 "AN ACT concerning the Illinois Coal Development Board."; 5 and 6 by replacing everything after the enacting clause with the 7 following: 8 "Section 5. The Energy Conservation and Coal Development 9 Act is amended by changing Sections 8 and 9 as follows: 10 (20 ILCS 1105/8) (from Ch. 96 1/2, par. 7408) 11 Sec. 8. Illinois Coal Development Board. 12 (a) There shall be established as an advisory board to,13withinthe Department, the Illinois Coal Development Board, 14 hereinafter in this Section called the Board. The Board 15 shall be composed of the following13voting members 16including: the Director of the Department, who shall be 17 Chairman thereof; the Deputy Director of the Bureau of 18 Business Development within the Department of Commerce and 19 Community Affairs; the Director of Natural Resources or that 20 Director's designee; the Director of the Office of Mines and 21 Minerals within the Department of Natural Resources; 4 -2- LRB9000888PTcwam 1 members of the General Assembly (one each appointed by the 2 President of the Senate, the Senate Minority Leader, the 3 Speaker of the House, and the House Minority Leader)the two4co-chairpersons of the Citizens Council on Energy Resources,5created by Public Act 84-15; and 8 persons appointed by the 6 Governor, with the advice and consent of the Senate, 7 including representatives of Illinois industries that are 8 involved in the extraction, utilization or transportation of 9 Illinois coal, persons representing financial or banking 10 interests in the State, and persons experienced in 11 international business and economic development. These 12 members shall be chosen from persons of recognized ability 13 and experience in their designated field. The8 appointed14 members appointed by the Governor shall serve for terms of 4 15 years, unless otherwise provided in this subsection. The 16 initial terms of the original appointees shall expire on July 17 1, 1985, except that the Governor shall designate 3 of the 18 original appointees to serve initial terms that shall expire 19 on July 1, 1983. The initial term of the member appointed by 20 the Governor to fill the office created after July 1, 1985 21 shall expire on July 1, 1989. The initial terms of the 22 members appointed by the Governor to fill the offices created 23 by this amendatory Act of 1993 shall expire on July 1, 1995, 24 and July 1, 1997, as determined by the Governor. A member 25 appointed by a Legislative Leader shall serve for the 26 duration of the General Assembly for which he or she is 27 appointed, so long as the member remains a member of that 28 General Assembly. 29 The Board shall meet at least annually or at the call of 30 the Chairman. At any time the majority of the Board may 31 petition the Chairman for a meeting of the Board. NineSeven32 members of the Board shall constitute a quorum. Members of 33 the Board shall be reimbursed for actual and necessary 34 expenses incurred while performing their duties as members of -3- LRB9000888PTcwam 1 the Board from funds appropriated to the Department for such 2 purpose. 3 (b) The Board shall provide advice and make 4 recommendations onhavethe following Department powers and 5 duties: 6 (1) To develop an annual agenda which may include 7 but is not limited to research and methodologies 8 conducted for the purpose of increasing the utilization 9 of Illinois' coal and other fossil fuel resources, with 10 emphasis on high sulfur coal, in the following areas: 11 coal extraction, preparation and characterization; coal 12 technologies (combustion, gasification, liquefaction, and 13 related processes); marketing; public awareness and 14 education, as those terms are used in the Illinois Coal 15 Technology Development Assistance Act; transportation; 16 procurement of sites and issuance of permits; and 17 environmental impacts. 18 (2) To support and coordinate Illinois coal 19 research, and to approve projects consistent with the 20 annual agenda and budget for coal research and the 21 purposes of this Act and to. The Board shall review and,22if acceptable,approve the annual budget and operating 23 plansubmitted by the Departmentfor administration of 24 the BoardBoard's projects and funds. 25 (3) To promote the coordination of available 26 research information on the production, preparation, 27 distribution and uses of Illinois coal. The Board shall 28 advise the existing research institutions within the 29 State on areas where research may be necessary. 30 (4) To cooperate to the fullest extent possible 31 with State and federal agencies and departments, 32 independent organizations, and other interested groups, 33 public and private, for the purposes of promoting 34 Illinois coal resources. -4- LRB9000888PTcwam 1 (5) To submit an annual report to the Governor and 2 the General Assembly outlining the progress and 3 accomplishments made in the year, providing an accounting 4 of funds received and disbursed, reviewing the status of 5 research contracts, and furnishing other relevant 6 information. 7 (6) To focus on existing coal research efforts in 8 carrying out its mission;. The Board shall attemptto 9 make use of existing research facilities in Illinois or 10 other institutions carrying out research on Illinois 11 coal;.as far as practicable, tothe Board shallmake 12 maximum use of the research facilities available at the 13 Illinois State Geological Survey, the Coal Extraction and 14 Utilization Research Center, the Illinois Coal 15 Development Park and universities and colleges located 16 within the State of Illinois; and to. Subject to the17approval of the Department, and in conjunction with its18statutory responsibilities, the Board maycreate a 19 consortium or center which conducts, coordinates and 20 supports coal research activities in the State of 21 Illinois. Programmatic activities of such a consortium 22 or center shall be subject to approval by the Department 23Boardand shall be consistent with the purposes of this 24 Act. The DepartmentBoardmay authorize expenditure of 25 funds in support of the administrative and programmatic 26 operations of such a center or consortium consistent with 27 its statutory authority. Administrative actions 28 undertaken by or for such a center or consortium shall be 29 subject to the approval of the Department. 30 (7) To make a reasonable attempt, before initiating 31 any research under this Act, to avoid duplication of 32 effort and expense by coordinating the research efforts 33 among various agencies, departments, universities or 34 organizations, as the case may be. -5- LRB9000888PTcwam 1 (8) To adopt, amend and repeal rules, regulations 2 and bylaws governing the Board'sitsorganization and,3theconduct of business, and the exercise of its powers4and duties. 5 (9) To authorize the expenditure of monies from the 6 Coal Technology Development Assistance Fund, the Public 7 Utility Fund and other funds in the State Treasury 8 appropriated to the Department, consistent with the 9 purposes of this Act. 10 (10) To seek, accept, and expend gifts or grants in 11 any form, from any public agency or from any other 12 source. Such gifts and grants may be held in trust by 13 the Department and expended at the direction of the 14 DepartmentBoardand in the exercise of the Department's 15Board'spowers and performance of the Department's 16Board'sduties. 17 (11) To publish, from time to time, the results of 18 Illinois coal research projects funded through the 19 DepartmentBoard. 20 (12) To authorize loans from appropriations from 21 the Build Illinois Bond Purposes Fund, the Build Illinois 22 Bond Fund and the Illinois Industrial Coal Utilization 23 Fund. 24 (13) To authorize expenditures of monies for coal 25 development projects under the authority of Section 13 of 26 the General Obligation Bond Act. 27 (c) The Board shall also provide advice and make 28 recommendations onhave and exercisethe following Department 29 powers and duties: 30 (1) To create and maintain thorough, current and 31 accurate records on all markets for and actual uses of 32 coal mined in Illinois, and to make such records 33 available to the public upon request. 34 (2) To identify all current and anticipated future -6- LRB9000888PTcwam 1 technical, economic, institutional, market, 2 environmental, regulatory and other impediments to the 3 utilization of Illinois coal. 4 (3) To monitor and evaluate all proposals and plans 5 of public utilities related to compliance with the 6 requirements of Title IV of the federal Clean Air Act 7 Amendments of 1990, or with any other law which might 8 affect the use of Illinois coal, for the purposes of (i) 9 determining the effects of such proposals or plans on the 10 use of Illinois coal, and (ii) identifying alternative 11 plans or actions which would maintain or increase the use 12 of Illinois coal. 13 (4) To develop strategies and to propose policies 14 to promote environmentally responsible uses of Illinois 15 coal for meeting electric power supply requirements and 16 for other purposes. 17 (5) (Blank).To issue a report to the Governor and18the General Assembly by October 1, 1991, and by March 119of each year thereafter, describing all findings,20conclusions and recommendations required by and developed21pursuant to this subsection; provided, however, that22interim reports may be issued whenever in the opinion of23the Board there may be a need to do so.24 (Source: P.A. 88-391; 89-445, eff. 2-7-96.) 25 (20 ILCS 1105/9) (from Ch. 96 1/2, par. 7409) 26 Sec. 9. The Illinois Industrial Coal Utilization 27 Program. The Department shall administer the Illinois 28 Industrial Coal Utilization Program, referred to as the 29 "program". The purpose of the program is to increase the 30 environmentally sound use of Illinois coal by qualified 31 applicants. To that end, the Department, with the assistance32of the Board,shall operate a revolving loan program to 33 partially finance new coal burning facilities sited in -7- LRB9000888PTcwam 1 Illinois or conversion of existing boilers located in 2 Illinois to coal use, referred to as "industrial coal 3 projects". 4 The Department, with the advice and recommendation 5subject to the approvalof the Illinois Coal Development 6 Board, shall make below market rate loans available to fund a 7 portion of each qualifying industrial coal project. The 8 applicant must demonstrate that it is able to obtain 9 additional financing from other sources to fund the remainder 10 of the project and that the project would not occur without 11 the Department's participation.The Board andThe Department 12 may, in part, rely on the financial evaluation completed by 13 the provider of the additional funding, as well as its own 14 evaluation. 15 The Department shall have the following powers: 16 (1) To accept grants, loans, or appropriations from the 17 federal government or the State, or any agency or 18 instrumentality of either, to be used for any purposes of the 19 program, including operating and administrative expenses 20 associated with the program and the making of direct loans of 21 those funds with respect to projects. The Department may 22 enter into any agreement with the federal government or the 23 State, or any agency or instrumentality of either, in 24 connection with those grants, loans, or appropriations. 25 (2) To make loans from appropriations from the Build 26 Illinois Purposes Fund or the Build Illinois Bond Fund and to 27 accept guarantees from individuals, partnerships, joint 28 ventures, corporations, and governmental agencies. Any loan 29 or series of loans shall be limited to an amount not to 30 exceed the lesser of $4,000,000 or 60% of the total project 31 cost. 32 (3) To establish interest rates, terms of repayment, and 33 other terms and conditions regarding loans made under this 34 Act as the Department shall determine necessary or -8- LRB9000888PTcwam 1 appropriate to protect the public interest and carry out the 2 purposes of this Act. 3 (4) To receive, evaluate, and establish time schedules 4 for the determination of, and determine applications for 5 financial aid for the development, construction, acquisition, 6 or improvement of, an industrial coal project from any 7 qualifying applicant and negotiate terms and conditions on 8 which the coal project may be developed, constructed, 9 improved, owned, or used by or leased to the applicant or its 10 successor in interest. The Department shall prescribe the 11 form of application. The form shall contain, without being 12 limited to, the following: 13 (i) a general description of the industrial coal 14 project and of the developer, user, or tenant for which 15 the industrial project is to be established; 16 (ii) plans, equipment lists, and other documents 17 that may be required to show the type, structure, and 18 general character of the project; 19 (iii) a general description of the expected use of 20 Illinois coal resulting from the project; 21 (iv) cost estimates of developing, constructing, 22 acquiring, or improving the industrial project; 23 (v) a general description of the financing plan for 24 the industrial coal project; and 25 (vi) a general description and statement of value 26 of any property and its improvements provided or to be 27 provided for the project by other sources. 28 Nothing in this Section shall be deemed to preclude the 29 Department, before the filing of any formal application, from 30 conducting preliminary discussions and investigations with 31 respect to the subject matter of any prospective 32 applications. 33 (Source: P.A. 87-14.) -9- LRB9000888PTcwam 1 Section 10. The General Obligation Bond Act is amended 2 by changing Section 13 as follows: 3 (30 ILCS 330/13) (from Ch. 127, par. 663) 4 Sec. 13. Appropriation of Proceeds from Sale of Bonds. 5 (a) At all times, the proceeds from the sale of Bonds 6 issued pursuant to this Act are subject to appropriation by 7 the General Assembly and may be obligated or expended only 8 with the written approval of the Governor, in such amounts, 9 at such times, and for such purposes as the respective State 10 agencies, as defined in Section 1-7 of the Illinois State 11 Auditing Act, as amended, deem necessary or desirable for the 12 specific purposes contemplated in Sections 2 through 8 of 13 this Act. 14 (b) Proceeds from the sale of Bonds for the purpose of 15 development of coal and alternative forms of energy shall be 16 expended in such amounts and at such times as the Department 17 of Commerce and Community Affairs, with the advice and 18 recommendationthe approvalof the Illinois Coal Development 19 Board for coal development projects, may deem necessary and 20 desirable for the specific purpose contemplated by Section 7 21 of this Act. In considering the approval of projects to be 22 funded, the Department of Commerce and Community Affairsand23the Illinois Coal Development Board,shall give special 24 consideration to projects designed to remove sulfur and other 25 pollutants in the preparation and utilization of coal, and in 26 the use and operation of electric utility generating plants 27 and industrial facilities which utilize Illinois coal as 28 their primary source of fuel. 29 (c) Any monies received by any officer or employee of 30 the state representing a reimbursement of expenditures 31 previously paid from general obligation bond proceeds shall 32 be deposited into the General Obligation Bond Retirement and 33 Interest Fund authorized in Section 14 of this Act. -10- LRB9000888PTcwam 1 (Source: P.A. 89-445, eff. 2-7-96.) 2 Section 15. The Illinois Coal Technology Development 3 Assistance Act is amended by changing Section 4 and 6 as 4 follows: 5 (30 ILCS 730/4) (from Ch. 96 1/2, par. 8204) 6 Sec. 4. Expenditures from Coal Technology Development 7 Assistance Fund. 8 (a) The contents of the Coal Technology Development 9 Assistance Fund may be expended, subject to appropriation by 10 the General Assembly, in such amounts and at such times as 11 the Department, with the advice and recommendationapproval12 of the Board, may deem necessary or desirable for the 13 purposes of this Act. 14 (b) The Department shall develop a written plan 15 containing measurable 3-year and 10-year goals and objectives 16 in regard to the funding of coal research and coal 17 demonstration and commercialization projects, and programs 18 designed to preserve and enhance markets for Illinois coal. 19 In developing these goals and objectives, the Department 20 shall consider and determine the appropriate balance for the 21 achievement of near-term and long-term goals and objectives 22 and of ensuring the timely commercial application of 23 cost-effective technologies or energy and chemical production 24 processes or systems utilizing coal. The Department shall 25 develop the initial goals and objectives no later than 26 December 1, 1993, and develop revised goals and objectives no 27 later than July 1 annually thereafter. 28 (c) In addition to any other permitted use of moneys in 29 the Fund, and notwithstanding any restriction on the use of 30 the Fund, moneys in the Coal Technology Development 31 Assistance Fund may be transferred to the General Revenue 32 Fund as authorized by this amendatory Act of 1992. The -11- LRB9000888PTcwam 1 General Assembly finds that an excess of moneys exists in the 2 Fund. On February 1, 1992, the Comptroller shall order 3 transferred and the Treasurer shall transfer $500,000 (or 4 such lesser amount as may be on deposit in the Fund and 5 unexpended and unobligated on that date) from the Fund to the 6 General Revenue Fund. 7 (Source: P.A. 88-391; 89-499, eff. 6-28-96.) 8 (30 ILCS 730/6) (from Ch. 96 1/2, par. 8206) 9 Sec. 6. Coal demonstration and commercialization 10 project. No expenditure from the Fund may be made for any 11 coal demonstration and commercialization project until it has 12 been approved by the Department with the advice and 13 recommendation of the Board. 14A specific proposal shall be deemed approved if the Board15fails to act on it within the 45-day period.16 All coal research projects shall be submitted to the 17 Department, with the advice and recommendation of the 18 Illinois Coal Development Board, for approval as provided in 19 Section 8 of the Energy Conservation and Coal Development Act 20"An Act in relation to natural resources, research, data21collection and environmental studies", approved July 14,221978, as amended. 23 (Source: P.A. 84-1070.)".