Illinois General Assembly - Full Text of Public Act 094-1030
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Public Act 094-1030




Public Act 094-1030
SB0619 Enrolled LRB094 04356 RCE 34385 b

    AN ACT concerning State government.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 5. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois is
amended by changing Section 605-332 as follows:
    (20 ILCS 605/605-332)
    Sec. 605-332. Financial assistance to energy generation
    (a) As used in this Section:
    "New electric generating facility" means a
newly-constructed electric generation plant or a newly
constructed generation capacity expansion at an existing
facility, including the transmission lines and associated
equipment that transfers electricity from points of supply to
points of delivery, and for which foundation construction
commenced not sooner than July 1, 2001, which is designed to
provide baseload electric generation operating on a continuous
basis throughout the year and:
        (1) has an aggregate rated generating capacity of at
    least 400 megawatts for all new units at one site, uses
    coal or gases derived from coal as its primary fuel source,
    and supports the creation of at least 150 new Illinois coal
    mining jobs; or
        (2) is funded through a federal Department of Energy
    grant before December 31, 2007 July 1, 2006 and supports
    the creation of Illinois coal-mining jobs; or
        (3) uses coal gasification or integrated
    gasification-combined cycle units that generate
    electricity or chemicals, or both, and supports the
    creation of Illinois coal-mining jobs.
    "New gasification facility" means a newly constructed coal
gasification facility that generates chemical feedstocks or
transportation fuels derived from coal (which may include, but
are not limited to, methane, methanol, and nitrogen
fertilizer), that supports the creation or retention of
Illinois coal-mining jobs, and that qualifies for financial
assistance from the Department before December 31, 2006. A new
gasification facility does not include a pilot project located
within Jefferson County or within a county adjacent to
Jefferson County for synthetic natural gas from coal.
    "New facility" means a new electric generating facility or
a new gasification facility. A new facility does not include a
pilot project located within Jefferson County or within a
county adjacent to Jefferson County for synthetic natural gas
from coal.
    "Eligible business" means an entity that proposes to
construct a new facility and that has applied to the Department
to receive financial assistance pursuant to this Section. With
respect to use and occupation taxes, wherever there is a
reference to taxes, that reference means only those taxes paid
on Illinois-mined coal used in a new facility.
    "Department" means the Illinois Department of Commerce and
Economic Opportunity.
    (b) The Department is authorized to provide financial
assistance to eligible businesses for new facilities from funds
appropriated by the General Assembly as further provided in
this Section.
    An eligible business seeking qualification for financial
assistance for a new facility, for purposes of this Section
only, shall apply to the Department in the manner specified by
the Department. Any projections provided by an eligible
business as part of the application shall be independently
verified in a manner as set forth by the Department. An
application shall include, but not be limited to:
        (1) the projected or actual completion date of the new
    facility for which financial assistance is sought;
        (2) copies of documentation deemed acceptable by the
    Department establishing either (i) the total State
    occupation and use taxes paid on Illinois-mined coal used
    at the new facility for a minimum of 4 preceding calendar
    quarters or (ii) the projected amount of State occupation
    and use taxes paid on Illinois-mined coal used at the new
    facility in 4 calendar year quarters after completion of
    the new facility. Bond proceeds subject to this Section
    shall not be allocated to an eligible business until the
    eligible business has demonstrated the revenue stream
    sufficient to service the debt on the bonds; and
        (3) the actual or projected amount of capital
    investment by the eligible business in the new facility.
    The Department shall determine the maximum amount of
financial assistance for eligible businesses in accordance
with this paragraph. The Department shall not provide financial
assistance from general obligation bond funds to any eligible
business unless it receives a written certification from the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget) that 80% of the State occupation and use
tax receipts for a minimum of the preceding 4 calendar quarters
for all eligible businesses or as included in projections on
approved applications by eligible businesses equal or exceed
110% of the maximum annual debt service required with respect
to general obligation bonds issued for that purpose. The
Department may provide financial assistance not to exceed the
amount of State general obligation debt calculated as above,
the amount of actual or projected capital investment in the
facility, or $100,000,000, whichever is less. Financial
assistance received pursuant to this Section may be used for
capital facilities consisting of buildings, structures,
durable equipment, and land at the new facility. Subject to the
provisions of the agreement covering the financial assistance,
a portion of the financial assistance may be required to be
repaid to the State if certain conditions for the governmental
purpose of the assistance were not met.
    An eligible business shall file a monthly report with the
Illinois Department of Revenue stating the amount of
Illinois-mined coal purchased during the previous month for use
in the new facility, the purchase price of that coal, the
amount of State occupation and use taxes paid on that purchase
to the seller of the Illinois-mined coal, and such other
information as that Department may reasonably require. In sales
of Illinois-mined coal between related parties, the purchase
price of the coal must have been determined in an arms-length
transaction. The report shall be filed with the Illinois
Department of Revenue on or before the 20th day of each month
on a form provided by that Department. However, no report need
be filed by an eligible business in a month when it made no
reportable purchases of coal in the previous month. The
Illinois Department of Revenue shall provide a summary of such
reports to the Governor's Office of Management and Budget.
    Upon granting financial assistance to an eligible
business, the Department shall certify the name of the eligible
business to the Illinois Department of Revenue. Beginning with
the receipt of the first report of State occupation and use
taxes paid by an eligible business and continuing for a 25-year
period, the Illinois Department of Revenue shall each month pay
into the Energy Infrastructure Fund 80% of the net revenue
realized from the 6.25% general rate on the selling price of
Illinois-mined coal that was sold to an eligible business.
(Source: P.A. 93-167, eff. 7-10-03; 93-1064, eff. 1-13-05;
94-65, eff. 6-21-05.)
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/14/2006