Full Text of SB1814 94th General Assembly
SB1814eng 94TH GENERAL ASSEMBLY
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| AN ACT concerning finance.
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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 5. The Department of Commerce and Economic | 5 |
| Opportunity Law of the
Civil Administrative Code of Illinois is | 6 |
| 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 | 9 |
| facilities.
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| (a) As used in this Section:
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| "New electric generating facility" means a | 12 |
| newly-constructed electric
generation plant or a newly | 13 |
| constructed generation capacity expansion at an
existing | 14 |
| facility, including the transmission lines and associated | 15 |
| equipment
that transfers electricity from points of supply to | 16 |
| points of delivery, and for
which foundation construction | 17 |
| commenced not sooner than July 1, 2001, which is
designed to | 18 |
| 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 | 22 |
| coal or gases derived
from coal as its primary fuel
source, | 23 |
| and supports the creation of at least 150 new Illinois coal | 24 |
| mining
jobs; or
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| (2) is (i) funded through a federal Department of | 26 |
| Energy grant before July 1, 2007
2005 , and (ii) uses coal | 27 |
| gasification or integrated gasification-combined cycle
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| units that generate electricity or chemicals, or both, and | 29 |
| that supports the
creation of
Illinois
coal-mining jobs.
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| "Eligible business" means an entity that proposes to | 31 |
| construct a new electric
generating facility and that has | 32 |
| applied to the Department to receive financial
assistance |
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| pursuant to this Section.
With respect to use and occupation | 2 |
| taxes, wherever there is a reference to
taxes, that reference | 3 |
| means only those taxes paid on Illinois-mined coal used
in
a | 4 |
| new electric generating 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 | 8 |
| assistance to eligible businesses for new electric generating
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| facilities from funds appropriated by the General Assembly as | 10 |
| further provided
in this Section.
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| An eligible business seeking qualification for financial | 12 |
| assistance for
a new electric generating facility, for purposes | 13 |
| of this Section only, shall
apply to the Department in the | 14 |
| manner specified by the Department. Any
projections provided by | 15 |
| an eligible business as part of the application shall
be | 16 |
| independently verified in a manner as set forth by the | 17 |
| Department. An
application shall include, but not
be limited | 18 |
| to:
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| (1) the projected or actual completion date of the new | 20 |
| electric
generating facility
for which financial | 21 |
| assistance is sought;
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| (2) copies of documentation deemed
acceptable by the | 23 |
| Department establishing either (i) the total State
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| occupation
and use taxes paid on Illinois-mined coal used | 25 |
| at the new electric
generating facility for a minimum of 4 | 26 |
| preceding calendar quarters or (ii)
the projected amount of | 27 |
| State occupation and use taxes paid on Illinois-mined
coal | 28 |
| used at the new electric generating facility in 4 calendar | 29 |
| year quarters
after completion of the new electric | 30 |
| generating facility.
Bond proceeds subject to this Section | 31 |
| shall not be allocated to an
eligible business until the | 32 |
| eligible business has demonstrated the revenue
stream | 33 |
| sufficient to service the debt on the bonds; and
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| (3) the actual or projected amount of capital | 35 |
| investment by the
eligible business
in the new electric | 36 |
| generating facility.
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| The Department shall determine the maximum amount of | 2 |
| financial
assistance for eligible businesses in accordance | 3 |
| with this paragraph. The
Department shall not provide financial | 4 |
| assistance from general obligation bond
funds to any eligible | 5 |
| business
unless it receives a written certification from the | 6 |
| Director of the
Bureau of
the Budget
(now Governor's Office of | 7 |
| Management and Budget)
that 80% of the State occupation and use | 8 |
| tax receipts for a minimum
of the
preceding 4 calendar quarters | 9 |
| for all eligible businesses or as included in
projections on | 10 |
| approved applications by eligible businesses equal or exceed
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| 110% of the maximum annual debt service required with respect | 12 |
| to general
obligation bonds issued for that purpose. The | 13 |
| Department may provide
financial assistance not to exceed the | 14 |
| amount of State general obligation
debt calculated as above, | 15 |
| the amount of actual or projected capital
investment in the | 16 |
| energy
generation facility, or $100,000,000, whichever is | 17 |
| less.
Financial assistance received pursuant to this Section | 18 |
| may be used
for capital facilities consisting of buildings, | 19 |
| structures, durable equipment,
and land at the new electric | 20 |
| generating facility. Subject to the provisions
of the agreement | 21 |
| covering the financial assistance, a portion of the financial
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| assistance may be required to be repaid to the State if certain | 23 |
| conditions for
the governmental purpose of the assistance were | 24 |
| 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 | 27 |
| Illinois-mined coal
purchased during
the previous month for use | 28 |
| in the new electric generating facility, the
purchase price of | 29 |
| that coal, the amount of State
occupation and use taxes paid on | 30 |
| that purchase to the seller of the
Illinois-mined coal, and
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| such other
information as that Department may reasonably | 32 |
| require. In sales of
Illinois-mined coal between related | 33 |
| parties, the purchase price of the coal
must have been | 34 |
| determined in an arms-length transaction. The report shall be
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| filed with the Illinois Department of Revenue on or before the | 36 |
| 20th day of
each month on a form provided by that Department. |
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| However, no report
need be filed by an eligible business in a | 2 |
| month when it made
no reportable purchases of coal in the | 3 |
| previous month.
The Illinois Department of Revenue shall | 4 |
| provide a summary of such reports to
the
Governor's Office of | 5 |
| Management and Budget.
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| Upon granting financial assistance to an eligible | 7 |
| business, the Department
shall certify the name of the eligible | 8 |
| business to the Illinois Department of
Revenue. Beginning with | 9 |
| the receipt of the first report of State occupation
and use | 10 |
| taxes paid by an
eligible business and continuing for a 25-year | 11 |
| period, the Illinois Department
of Revenue shall each month pay | 12 |
| into the Energy Infrastructure Fund 80% of the
net revenue | 13 |
| realized from the 6.25% general rate on the selling price of
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| Illinois-mined coal that was sold to an eligible business.
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| (Source: P.A. 92-12, eff. 7-1-01; 93-167, eff. 7-10-03; | 16 |
| 93-1064, eff. 1-13-05.)
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| Section 99. Effective date. This Act takes effect upon | 18 |
| becoming law.
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