92nd General Assembly
Summary of HB0063
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House Sponsors:
GRANBERG-NOVAK-MADIGAN,MJ-BOST-REITZ, FRANKS, HARTKE, 
   DART AND DAVIS,MONIQUE.

Short description: 
GO BONDS-USE & OCC TAX-COAL                                                

Synopsis of Bill as introduced:
        Creates the  Illinois  Coal  Mining  and  Coal  Development  Act.      
   Creates  the  Illinois  Coal  Mining  and  Coal  Development Board and      
   authorizes the Board to provide advice  and  make  recommendations  on      
   certain  powers  and  duties  of the Illinois Environmental Protection      
   Agency with respect to coal-related matters.  Authorizes the State  to      
   issue  bonds  in  the  amount  of  $500,000,000  for  the  purposes of      
   architectural  and  technical  planning  and  installation  of  sulfur      
   dioxide and nitrogen oxide emission  control  systems  for  coal-fired      
   electric  generating  units.   Provides that the proceeds of the bonds      
   shall be deposited into a separate fund known as the Coal  Mining  and      
   Coal  Development Fund, and amends the State Finance Act to create the      
   Fund. Amends the General Obligation  Bond  Act.   Increases  the  bond      
   authorization  limit  by $500,000,000 for coal and energy development.      
   Deletes language in the General Obligation Bond Act and  the  Illinois      
   Coal  and  Energy  Development  Bond  Act  that directs DCCA to make a      
   $35,000,000 grant to a generating station to construct a  facility  to      
   reduce  sulfur  dioxide  emissions  at  a  coal-fired generating unit.      
   Amends the  Use  Tax  Act,  the  Service  Use  Tax  Act,  the  Service      
   Occupation  Tax  Act, and the Retailers' Occupation Tax Act.  Provides      
   that, beginning February 1, 2002, each month the Department of Revenue      
   shall pay into the General Obligation  Bond  Retirement  and  Interest      
   Fund  80% of the net revenue realized for the preceding month from the      
   selling price of coal until the Bureau of the Budget certifies to  the      
   Department  that  the  amount  that  will  be necessary to finance the      
   $500,000,000 in additional general obligation bonds authorized  to  be      
   issued under this amendatory Act of the 92nd General Assembly for coal      
   development has been paid into that Fund. Effective July 1, 2001.           
          STATE DEBT NOTE (Economic and Fiscal Commission)                     
          Assuming an interest rate of 6.0% and a 25-year level repayment      
          period, the additional $500 million in bonding authority would       
          increase total General Obligation Debt by approximately $950         
          million and annual debt service by approximately $39 million.        
        HOUSE AMENDMENT NO. 1.                                                 
          Deletes reference to:                                                
          35 ILCS 105/9                                                        
          35 ILCS 110/9                                                        
          35 ILCS 115/9                                                        
          35 ILCS 120/3                                                        
        Deletes everything and reinserts the provisions of  the  bill  as      
   introduced  with  changes  as follows.  Changes the short title to the      
   Clean Air and Development Act.   Defines  "project"  as  any  proposal      
   submitted  to  the  Clean  Air  and Development Board in response to a      
   request for project proposals that includes  a  technology  that  will      
   enhance   the  use  of  Illinois  coal  in  Illinois  while  enhancing      
   environmental protection.   Changes  the  composition  of  the  Board.      
   Provides  that project funding may also be provided for sulfur dioxide      
   control  systems  and  transmission  systems  for  new   or   existing      
   coal-fired electric generating units.  Adds items concerning which the      
   Board   shall   provide   advice   and  make  recommendations  to  the      
   Environmental Protection Agency.  Provides for  Board  evaluation  and      
   recommendations   concerning   project   proposals,   and  for  Agency      
   consideration of Board recommendations and notice to the Board  and  a      
   provision   for   a  hearing  in  cases  of  disagreement  with  Board      
   recommendations.  Deletes language requiring 80% of use and occupation      
   tax  revenue  to  be  deposited  into  the  General  Obligation   Bond      
   Retirement  and  Interest Fund.  Provides that on or before May 1 each      
   year until the bonds authorized to be issued under this amendatory Act      
   of the 92nd General Assembly for coal development have been paid,  the      
   Bureau  of  the  Budget  shall  certify  the  amount  necessary  to be      
   appropriated in the State fiscal year that begins on July  1  of  that      
   calendar  year to finance the bonds authorized to be issued under this      
   amendatory Act of the 92nd  General  Assembly  for  coal  development.      
   Effective July 1, 2001.                                                     
          STATE DEBT NOTE, H-AM 1 (Economic and Fiscal Commission)             
          HB 63, as amended, would increase:                                   
           General Obligation principal by                  $ 500 million      
           Potential General Obligation debt by             $ 950 million      
           Annual debt service by                           $  39 million      
          FISCAL NOTE, H-AM 1 (Environmental Protection Agency)                
          HB 63 has a significant fiscal impact. The bill will require         
          the issuance of an additional $500 million in General Obliga-        
          tion Bonds for use by EPA consistent with the Clean Air and          
          Development Act. The Agency estimates that an additional             
          $450,000 annually in general revenue will be necessary to            
          implement and administer the program.                                
        HOUSE AMENDMENT NO. 4.                                                 
          Adds reference to:                                                   
          20 ILCS 605/605-331 new                                              
          20 ILCS 655/5.3                                                      
          20 ILCS 687/6-3                                                      
          20 ILCS 3505/7                                                       
          20 ILCS 3505/7.90 new                                                
          20 ILCS 3505/7.91 new                                                
          20 ILCS 3505/7.92 new                                                
          20 ILCS 3505/7.93 new                                                
          20 ILCS 3505/7.94 new                                                
          20 ILCS 3505/7.95 new                                                
          20 ILCS 3505/7.96 new                                                
          20 ILCS 3505/7.97 new                                                
          20 ILCS 3505/7.98 new                                                
          20 ILCS 3505/7.99 new                                                
          30 ILCS 105/5.546 new                                                
          35 ILCS 5/213 new                                                    
          35 ILCS 105/3-5                                                      
          35 ILCS 110/3-5                                                      
          35 ILCS 115/3-5                                                      
          35 ILCS 120/2-5                                                      
          35 ILCS 200/15-72 new                                                
          220 ILCS 5/2-202                                                     
          415 ILCS 5/9.9                                                       
          415 ILCS 5/9.10 new                                                  
        Deletes everything.  Creates the Clean Air and  Development  Law.      
   Amends  the  General Obligation Bond Act to increase bonding authority      
   by $500,000,000 and provides that the $500,000,000 is to  be  used  by      
   DCCA  to  fund  projects that will enhance the use of Illinois coal in      
   Illinois  while  enhancing  environmental  protection.    Amends   the      
   Renewable  Energy,  Energy  Efficiency, and Coal Resources Development      
   Law of 1997 to establish a pilot project to  fund  a  biomass-to-fuels      
   research  facility  in  Illinois that uses agricultural feedstocks and      
   advances technologies to develop a new  environmentally  friendly  and      
   sustainable  industry.   Amends  the State Finance Act to create Funds      
   into  which  bonding  proceeds  shall  be  deposited  to  fund   these      
   initiatives.  Amends the Illinois Coal and Energy Development Bond Act      
   and  the  Environmental  Protection Act to implement the Clean Air and      
   Development Law. Creates the Empower Illinois Law.  Provides that  the      
   purpose  of  the Law is to use abundant coal reserves to turn Southern      
   Illinois into the State's "power plant", providing power  for  Chicago      
   and its suburbs, and reducing the need for peaker plants.  Creates the      
   Empower  Illinois Commission to consider the most effective way to use      
   Illinois coal to resolve  the  energy  issues  facing  the  State  and      
   provides  that  the  Commission  shall  issue  a report containing its      
   recommendations to the Governor and the General Assembly on or  before      
   January  30,  2002.  Provides that the Department of Natural Resources      
   shall develop, in its Division of Mines and Minerals, a  single  point      
   of review process for entities interested in building mine-mouth power      
   plants  and  related power transmission lines that coordinates reviews      
   by all involved State and federal agencies.  Amends the Department  of      
   Commerce and Community Affairs Law of the Civil Administrative Code of      
   Illinois. Defines "mine-mouth power plant" as a coal-fired power plant      
   sited adjacent to a coal mine and provides that DCCA must establish by      
   rule  the  standards  that  must  be met to qualify as a related power      
   transmission line.  Amends the Illinois Enterprise Zone Act.  Provides      
   that  DCCA  may  designate  12  additional  Enterprise  Zones  for the      
   construction of mine-mouth power plants.   Provides  that  DCCA  shall      
   establish  by  rule  the criteria for eligibility for certification of      
   the 12 additional Enterprise Zones.  Amends the  Illinois  Income  Tax      
   Act,  the  Use  Tax  Act,  the  Service  Use  Tax  Act, the Retailers'      
   Occupation Tax Act, the Property Tax Code, and  the  Public  Utilities      
   Act  to  provide  various  tax  incentives  for  the  construction  of      
   mine-mouth  power  plants  and  for  the construction of related power      
   transmission lines.  Effective July 1, 2001.                                
        HOUSE AMENDMENT NO. 5.                                                 
        Amends the General  Obligation  Bond  Act  and  makes  comparable      
   changes  in  the  Clean Air and Development Law to provide that of the      
   $500,000,000 authorized to be used by the Department of  Commerce  and      
   Community  Affairs  for the purposes consistent with the Clean Air and      
   Development  Law,  $100,000,000  must  be  used  exclusively  for  the      
   construction of mine-mouth power plants.                                    
          STATE DEBT NOTE, H-AM 4,5 (Economic and Fiscal Commission)           
          Same as previous State Debt notes.                                   
          FISCAL NOTE, H-AM 4,5                                                
          (Department of Commerce and Community Affairs)                       
          HB 63 will have a fiscal impact on several State agencies and        
          revenue sources in various ways:                                     
          ..DCCA estimates the fiscal impact to be at least $450,000,          
          including 5 additional headcount with specialized knowledge.         
          The cost to the Department for recording fees and rulemaking         
          associated with new or amended enterprise zones is unknown at        
          this time.                                                           
          ..EPA estimates a cost of $250,000 in GRF to develop, promul-        
          gate and implement rules for the recommended strategies and to       
          prepare the report to the General Assembly regarding the poten-      
          tial need for the control or reduction of emissions from fossil      
          fuel-fired electric generating plants.                               
          ..BOB estimates the fiscal impact of the issuance of $500 mil-       
          lion of General Obligation bonds to be approximately $40-$50         
          million per year for 25 years from GRF, assuming tax-exempt          
          interest rates.                                                      
          ..The impact of the various exemptions and tax credits and the       
          creation of additional enterprise zones on State revenues can-       
          not be determined at this time.                                      
          ..This fiscal note does not address the potential impact of          
          HB 63 on the Illinois Development Finance Authority.                 
          STATE MANDATE NOTE, H-AM 4,5                                         
          (Department of Commerce and Community Affairs)                       
          In the opinion of DCCA, HB 63 (H-ams 4 and 5) creates a tax          
          exemption mandate for which reimbursement of 100% of the in-         
          creased costs to local governments is required under the State       
          Mandates Act. An estimate of the increased costs to local gov-       
          ernments is not available at this time.                              
          HOME RULE NOTE, H-AM 4,5                                             
          (Department of Commerce and Community Affairs)                       
          This legislation does not contain language indicating a pre-         
          emption of home rule powers and functions.                           
          PENSION NOTE, H-AM 4,5 (Pension Laws Commission)                     
          HB 63 (H-ams 4 and 5) would not affect the accrued liabilities       
          or annual cost of any Illinois public pension fund or retire-        
          ment system.                                                         
          CORRECTIONAL NOTE, H-AM 4,5 (Department of Corrections)              
          HB 63 (H-ams 4 and 5) does not have an impact on DOC.                
          HOUSING AFFORDABILITY NOTE, H-AM 4,5                                 
          (Illinois Housing Development Authority)                             
          There will be no fiscal effect on the cost of constructing,          
          purchasing, owning, or selling a single-family residence.            
          JUDICIAL NOTE, H-AM 4, 5 (Office of the Illinois Courts)             
          HB 63 (H-ams 4 and 5) would neither increase nor decrease the        
          number of judges needed in the State.                                
 
Last action on Bill: SESSION SINE DIE

   Last action date: JAN-07-2003

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   3     SENATE -   0


   END OF INQUIRY 
                                                                               



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