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Public Act 095-0018


 

Public Act 0018 95TH GENERAL ASSEMBLY



 


 
Public Act 095-0018
 
SB1704 Enrolled LRB095 09141 RCE 29334 b

    AN ACT concerning alternative energy.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the Clean
Coal FutureGen for Illinois Act.
 
    Section 5. Purpose. Recognizing that the FutureGen Project
is a first-of-a-kind research project to permanently sequester
underground carbon-dioxide emissions from a coal-fueled power
plant, and that such a project would have benefits to the
economy and environment of Illinois, the purpose of this Act is
to provide the FutureGen Alliance with adequate liability
protection and permitting certainty to facilitate the siting of
the FutureGen Project in the State of Illinois.
 
    Section 10. Legislative findings. The General Assembly
finds and determines that:
    (1) human-induced greenhouse gas emissions have been
identified as contributing to global warming, the effects of
which pose a threat to public health and safety and the economy
of the State of Illinois;
    (2) in order to meet the energy needs of the State of
Illinois, keep its economy strong and protect the environment
while reducing its contribution to human-induced greenhouse
gas emissions, the State of Illinois must be a leader in
developing new low-carbon technologies;
    (3) carbon capture and storage is a low-carbon technology
that involves capturing the carbon dioxide from fossil fuel
energy and hydrogen generating units and injecting it into
secure geologic strata for permanent storage;
    (4) the FutureGen Project is a public-private partnership
between the Federal Department of Energy and the FutureGen
Alliance that proposes to use this new technology as part of a
plan to build and operate a near zero emission coal fueled
power plant;
    (5) the FutureGen Project will help ensure the long-term
viability of Illinois Basin coal as a major energy source in
the State of Illinois and throughout the nation and represents
a significant step in the State of Illinois' efforts to become
a self-sufficient, clean energy producer;
    (6) the FutureGen Project provides an opportunity for the
State of Illinois to partner with the Federal Department of
Energy and the FutureGen Alliance in the development of these
innovative clean-coal technologies;
    (7) the FutureGen Project will make the State of Illinois a
center for developing and refining clean coal technology,
hydrogen production and carbon capture and storage, and will
result in the development of new technologies designed to
improve the efficiency of the energy industry that will be
replicated world wide;
    (8) the FutureGen Project is an important coal development
and conversion project that will create jobs in the State of
Illinois during the construction and operational phases,
contribute to the overall economy of the State of Illinois and
help reinvigorate the Illinois Basin coal industry; and
    (9) the FutureGen Project and the property necessary for
the FutureGen Project serve a substantial public purpose as its
coal gasification, electricity generation, hydrogen
production, advanced emissions control and carbon capture and
storage technologies will benefit the citizens of the State of
Illinois.
 
    Section 15. Definitions. For the purposes of this Act:
    "Agency" means the Illinois Environmental Protection
Agency.
    "Carbon capture and storage" means the process of capturing
CO2 and other chemical constituents from coal combustion
by-products for the purpose of injecting and storing the gas
for permanent storage.
    "Carbon dioxide" or "CO2" means a colorless, odorless gas
in the form of one carbon and 2 oxygen atoms that is the
principal greenhouse gas.
    "Department" means the Department of Commerce and Economic
Opportunity.
    "Director" means the Director of Commerce and Economic
Opportunity.
    "Federal Department" means the federal Department of
Energy.
    "FutureGen Alliance" is a 501(c)(3) non-profit consortium
of coal and energy producers that, as of the effective date of
this Act, includes American Electric Power, Anglo American plc,
BHP Billiton, E. ON US, China Huaneng Group, CONSOL Energy,
Foundation Coal, Kennecott Energy, Peabody Energy, PPL
Corporation, Rio Tinto Energy American, Southern Company, and
Xstrata Coal.
    "FutureGen Project" means the public-private partnership
between the Federal Department and the FutureGen Alliance that
will construct and operate a coal-fueled power plant utilizing
state-of-the-art clean-coal technology and carbon capture and
storage. Two locations in Illinois, Tuscola and Mattoon, are
under consideration for the FutureGen Project. These are the
only locations eligible for benefits under this Act.
    "Mount Simon Formation" means the deep sandstone reservoir
into which the sequestered gas is to be injected at depths
generally ranging between 5,500 and 8,500 feet below ground
surface and that is bounded by the granitic basement below and
the Eau Claire Shale above.
    "Operator" means the FutureGen Alliance and its member
companies, including their parent companies, subsidiaries,
affiliates, directors, officers, employees, and agents.
    "Post-injection" means after the captured gas has been
successfully injected into the wellhead at the point at which
the gas is transferred into the wellbore for carbon
sequestration and storage into the Mount Simon Formation.
    "Pre-injection" means all activities and occurrences prior
to successful delivery into the wellhead at the point at which
the gas is transferred into the wellbore for carbon
sequestration and storage into the Mount Simon Formation,
including but not limited to, the operation of the FutureGen
Project.
    "Public liability" means any civil legal liability arising
out of or resulting from the storage, escape, release, or
migration of the post-injection sequestered gas that was
injected during the operation of the FutureGen Project by the
FutureGen Alliance. The term "public liability", however, does
not include any legal liability arising out of or resulting
from the construction, operation, or other pre-injection
activity of the Operator.
    "Public liability action" or "action" means a written
demand, lawsuit, or claim from any third party received by the
Operator seeking a remedy or alleging liability on behalf of
Operator resulting from any public liability.
    "Sequestered gas" means the CO2 and other chemical
constituents from the FutureGen Project operations that are
injected into the Mount Simon Formation.
 
    Section 20. Title to sequestered gas. If the FutureGen
Project locates at either the Tuscola or Mattoon site in the
State of Illinois, then the FutureGen Alliance agrees that the
Operator shall transfer and convey and the State of Illinois
shall accept and receive, with no payment due from the State of
Illinois, all rights, title, and interest in and to and any
liabilities associated with the sequestered gas, including any
current or future environmental benefits, marketing claims,
tradable credits, emissions allocations or offsets (voluntary
or compliance based) associated therewith, upon such gas
reaching the status of post-injection, which shall be verified
by the Agency or other designated State of Illinois agency. The
Operator shall retain all rights, title, and interest in and to
and any liabilities associated with the pre-injection
sequestered gas. The Illinois State Geological Survey of the
Illinois Department of Natural Resources shall monitor,
measure, and verify the permanent status of sequestered carbon
dioxide and co-sequestered gases in which the State has
acquired the right, title, and interest under this Section.
 
    Section 23. Sequestered gas. The State of Illinois may not
intentionally remove sequestered gas unless the removal is for
the purpose of research and development.
 
    Section 25. Insurance against qualified losses.
    (a) The Department shall procure an insurance policy from a
private insurance carrier or carriers, if and to the extent
that such a policy is available, that insures the Operator
against any qualified loss stemming from a public liability
action. The policy must be procured in accordance with the
provisions of the Procurement Code.
    (b) Pursuant to Section 30 of this Act, the State shall
indemnify the Operator against any qualified loss stemming from
a public liability action to the extent that the qualified loss
is not covered under an insurance policy under subsection (a)
of this Section.
    (c) The Department shall pay any insurance premium,
deductible, or liability under subsections (a) or (b) from
appropriations by the General Assembly for that purpose. It is
the intent of this Act that, to the extent practical, any
unexpended balance of the proceeds from the sale of emission
reduction rights or tradable credits to which the State has
title under Section 20 should be used for the purposes of this
subsection (c).
    (d) If the FutureGen Alliance locates the FutureGen Project
at either the Mattoon or Tuscola site in the State of Illinois,
then the Department shall be authorized to contract with the
FutureGen Alliance, under terms not inconsistent with this Act,
in order to define the rights and obligations of the FutureGen
Alliance and the Department, including but not limited to, the
insurance and indemnification obligations under Sections 25
and 30 of this Act.
    (e) If federal indemnification covers all or a portion of
the obligations assumed by the State under Section 25 of this
Act, such State obligations shall be reduced in proportion to
the federal indemnification and be considered subordinated to
any federal indemnification.
    (g) For the purpose of this Section, "qualified loss" means
a loss by the Operator stemming from a public liability action
other than those losses arising out of or relating to:
        (1) the intentional or willful misconduct of the
    Operator in its operation of the FutureGen Project;
        (2) the failure of the Operator to comply with any
    applicable law, rule, regulation, or other requirement
    established by the Federal Department, Agency, or State of
    Illinois for the carbon capture and storage of the
    sequestered gas, including any limitations on the chemical
    composition of any sequestered gas; or
        (3) the pre-injection operation of the FutureGen
    Project.
 
    Section 30. Indemnification. Notwithstanding any law to
the contrary, the State of Illinois shall indemnify, hold
harmless, defend, and release the Operator from and against any
public liability action asserted against the Operator, subject
to the following terms and conditions:
    (a) The obligation of the State of Illinois to indemnify
the Operator does not extend to any public liability arising
out of or relating to:
        (1) the intentional or willful misconduct of the
    Operator in its operation of the FutureGen Project;
        (2) the failure of the Operator to comply with any
    applicable law, rule, regulation, or other requirement
    established by the Federal Department, Agency, or State of
    Illinois for the carbon capture and storage of the
    sequestered gas, including any limitations on the chemical
    composition of any sequestered gas;
        (3) the pre-injection operation of the FutureGen
    Project; or
        (4) a qualified loss to the extent that it is paid
    under an insurance policy under subsection (a) of Section
    25 of this Act.
    (b) The indemnification obligations of the State of
Illinois assumed under Section 30 of this Act shall be reduced
in proportion and be subordinated to any federal
indemnification that covers all or a portion of the State's
obligations.
 
    Section 35. Representation. In furtherance of the State of
Illinois' obligations set forth in subsection (b) of Section 25
and in Section 30 of this Act, the Attorney General has the
following duties:
    (a) In the event that any public liability action covered
under Section 30 of this Act is commenced against the Operator,
the Attorney General shall, upon timely and appropriate notice
to the Attorney General by the Operator, appear on behalf of
the Operator and defend the action. Any such notice must be in
writing, must be mailed within 15 days after the date of
receipt by the Operator of service of process, and must
authorize the Attorney General to represent and defend the
Operator in the action. The delivery of this notice to the
Attorney General constitutes an agreement by the Operator to
cooperate with the Attorney General in defense of the action
and a consent that the Attorney General shall conduct the
defense as the Attorney General deems advisable and in the best
interests of the Operator and the State of Illinois, including
settlement in the Attorney General's discretion. The Operator
may appear in such action through private counsel to respond or
object only to any aspect of a proposed settlement or proposed
court order which would directly affect the day-to-day
operations of the FutureGen Project. In any such action, the
State of Illinois shall pay the court costs and litigation
expenses of defending such action, to the extent approved by
the Attorney General as reasonable, as they are incurred.
    (b) In the event that the Attorney General determines
either (i) that so appearing and defending the Operator
involves an actual or potential conflict of interest or (ii)
that the act or omission which gave rise to the claim was not
within the scope of the indemnity as provided in Section 30 of
this Act, the Attorney General shall decline in writing to
appear or defend or shall promptly take appropriate action to
withdraw as attorney for the Operator. Upon receipt of such
declination or withdrawal by the Attorney General on the basis
of an actual or potential conflict of interest, the Operator
may employ its own attorney to appear and defend, in which
event the State of Illinois shall pay the Operator's court
costs, litigation expenses, and attorneys' fees, to the extent
approved by the Attorney General as reasonable, as they are
incurred.
    (c) In any action asserted by the Operator or the State of
Illinois to enforce the indemnification obligations of the
State of Illinois as provided in Section 30 of the Act, the
non-prevailing party is responsible for any reasonable court
costs, litigation expenses, and attorneys fees incurred by the
prevailing party.
    (d) Court costs and litigation expenses and other costs of
providing a defense, including attorneys' fees, paid or
obligated under this Section, and the costs of indemnification,
including the payment of any final judgment or final settlement
under this Section, must be paid by warrant from appropriations
to the Department pursuant to vouchers certified by the
Attorney General.
    (e) Nothing contained or implied in this Section shall
operate, or be construed or applied, to deprive the State of
Illinois, or the Operator, of any defense otherwise available.
    (f) Any judgment subject to State of Illinois
indemnification under this Section is not enforceable against
the Operator, but shall be paid by the State of Illinois in the
following manner: Upon receipt of a certified copy of the
judgment, the Attorney General shall review it to determine if
the judgment is (i) final, unreversed, and no longer subject to
appeal and (ii) subject to indemnification under Section 30 of
this Act. If the Attorney General determines that it is, then
the Attorney General shall submit a voucher for the amount of
the judgment and any interest thereon to the State of Illinois
Comptroller and the amount must be paid by warrant from
appropriation to the Department to the judgment creditor solely
out of available appropriations.
 
    Section 40. Permitting. The State of Illinois shall issue
to the Operator all necessary and appropriate permits
consistent with State and federal law and corresponding
regulations. The State of Illinois must allow the Operator to
combine applications when appropriate, and the State of
Illinois must otherwise streamline the application process for
timely permit issuance.
 
    Section 43. Tax exemption. An operator is exempt from any
tax imposed by the State of Illinois that is based upon the
nameplate capacity of generating units.
 
    Section 45. Incentives. The State of Illinois has offered
certain incentives to the FutureGen Alliance to make the State
of Illinois the most attractive location for the FutureGen
Project.
 
    Section 50. Jurisdiction. The Court of Claims has
jurisdiction concerning any public liability action arising
under this Act or arising from the operation of the FutureGen
Project, except that a public liability action may be brought
in the circuit court if the cause of action is one of personal
injury or wrongful death and the injury or death was
proximately caused by the storage, escape, release, or
migration of the post-injection sequestered gas that was
injected during the operation of the FutureGen Project by the
FutureGen Alliance, and the circuit court is hereby granted
jurisdiction over these matters. The jurisdiction over civil,
administrative, or other legal processes is not, otherwise,
affected by this Act.
 
    Section 900. 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
facilities.
    (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, 2010 2007 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, 2010 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; 94-1030, eff. 7-14-06.)
 
    Section 905. The Illinois Enterprise Zone Act is amended by
changing Section 5.5 as follows:
 
    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
    Sec. 5.5. High Impact Business.
    (a) In order to respond to unique opportunities to assist
in the encouragement, development, growth and expansion of the
private sector through large scale investment and development
projects, the Department is authorized to receive and approve
applications for the designation of "High Impact Businesses" in
Illinois subject to the following conditions:
        (1) such applications may be submitted at any time
    during the year;
        (2) such business is not located, at the time of
    designation, in an enterprise zone designated pursuant to
    this Act;
        (3) the business intends to do one or more of the
    following:
            (A) the business intends to make a minimum
        investment of $12,000,000 which will be placed in
        service in qualified property and intends to create 500
        full-time equivalent jobs at a designated location in
        Illinois or intends to make a minimum investment of
        $30,000,000 which will be placed in service in
        qualified property and intends to retain 1,500
        full-time jobs at a designated location in Illinois.
        The business must certify in writing that the
        investments would not be placed in service in qualified
        property and the job creation or job retention would
        not occur without the tax credits and exemptions set
        forth in subsection (b) of this Section. The terms
        "placed in service" and "qualified property" have the
        same meanings as described in subsection (h) of Section
        201 of the Illinois Income Tax Act; or
            (B) the business intends to establish a new
        electric generating facility at a designated location
        in Illinois. "New electric generating facility", for
        purposes of this Section, means a newly-constructed
        electric generation plant or a newly-constructed
        generation capacity expansion at an existing electric
        generation plant, including the transmission lines and
        associated equipment that transfers electricity from
        points of supply to points of delivery, and for which
        such new foundation construction commenced not sooner
        than July 1, 2001. Such facility shall be designed to
        provide baseload electric generation and shall operate
        on a continuous basis throughout the year; and (i)
        shall have an aggregate rated generating capacity of at
        least 1,000 megawatts for all new units at one site if
        it uses natural gas as its primary fuel and foundation
        construction of the facility is commenced on or before
        December 31, 2004, or shall have an aggregate rated
        generating capacity of at least 400 megawatts for all
        new units at one site if it uses coal or gases derived
        from coal as its primary fuel and shall support the
        creation of at least 150 new Illinois coal mining jobs,
        or (ii) shall be funded through a federal Department of
        Energy grant before December 31, 2010 July 1, 2006 and
        shall support the creation of Illinois coal-mining
        jobs, or (iii) shall use coal gasification or
        integrated gasification-combined cycle units that
        generate electricity or chemicals, or both, and shall
        support the creation of Illinois coal-mining jobs. The
        business must certify in writing that the investments
        necessary to establish a new electric generating
        facility would not be placed in service and the job
        creation in the case of a coal-fueled plant would not
        occur without the tax credits and exemptions set forth
        in subsection (b-5) of this Section. The term "placed
        in service" has the same meaning as described in
        subsection (h) of Section 201 of the Illinois Income
        Tax Act; or
            (B-5) the business intends to establish a new
        gasification facility at a designated location in
        Illinois. As used in this Section, "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, 2010 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;
        or
            (C) the business intends to establish production
        operations at a new coal mine, re-establish production
        operations at a closed coal mine, or expand production
        at an existing coal mine at a designated location in
        Illinois not sooner than July 1, 2001; provided that
        the production operations result in the creation of 150
        new Illinois coal mining jobs as described in
        subdivision (a)(3)(B) of this Section, and further
        provided that the coal extracted from such mine is
        utilized as the predominant source for a new electric
        generating facility. The business must certify in
        writing that the investments necessary to establish a
        new, expanded, or reopened coal mine would not be
        placed in service and the job creation would not occur
        without the tax credits and exemptions set forth in
        subsection (b-5) of this Section. The term "placed in
        service" has the same meaning as described in
        subsection (h) of Section 201 of the Illinois Income
        Tax Act; or
            (D) the business intends to construct new
        transmission facilities or upgrade existing
        transmission facilities at designated locations in
        Illinois, for which construction commenced not sooner
        than July 1, 2001. For the purposes of this Section,
        "transmission facilities" means transmission lines
        with a voltage rating of 115 kilovolts or above,
        including associated equipment, that transfer
        electricity from points of supply to points of delivery
        and that transmit a majority of the electricity
        generated by a new electric generating facility
        designated as a High Impact Business in accordance with
        this Section. The business must certify in writing that
        the investments necessary to construct new
        transmission facilities or upgrade existing
        transmission facilities would not be placed in service
        without the tax credits and exemptions set forth in
        subsection (b-5) of this Section. The term "placed in
        service" has the same meaning as described in
        subsection (h) of Section 201 of the Illinois Income
        Tax Act; and
        (4) no later than 90 days after an application is
    submitted, the Department shall notify the applicant of the
    Department's determination of the qualification of the
    proposed High Impact Business under this Section.
    (b) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(A) of this Section shall qualify
for the credits and exemptions described in the following Acts:
Section 9-222 and Section 9-222.1A of the Public Utilities Act,
subsection (h) of Section 201 of the Illinois Income Tax Act,
and Section 1d of the Retailers' Occupation Tax Act; provided
that these credits and exemptions described in these Acts shall
not be authorized until the minimum investments set forth in
subdivision (a)(3)(A) of this Section have been placed in
service in qualified properties and, in the case of the
exemptions described in the Public Utilities Act and Section 1d
of the Retailers' Occupation Tax Act, the minimum full-time
equivalent jobs or full-time jobs set forth in subdivision
(a)(3)(A) of this Section have been created or retained.
Businesses designated as High Impact Businesses under this
Section shall also qualify for the exemption described in
Section 5l of the Retailers' Occupation Tax Act. The credit
provided in subsection (h) of Section 201 of the Illinois
Income Tax Act shall be applicable to investments in qualified
property as set forth in subdivision (a)(3)(A) of this Section.
    (b-5) Businesses designated as High Impact Businesses
pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
and (a)(3)(D) of this Section shall qualify for the credits and
exemptions described in the following Acts: Section 51 of the
Retailers' Occupation Tax Act, Section 9-222 and Section
9-222.1A of the Public Utilities Act, and subsection (h) of
Section 201 of the Illinois Income Tax Act; however, the
credits and exemptions authorized under Section 9-222 and
Section 9-222.1A of the Public Utilities Act, and subsection
(h) of Section 201 of the Illinois Income Tax Act shall not be
authorized until the new electric generating facility, the new
gasification facility, the new transmission facility, or the
new, expanded, or reopened coal mine is operational, except
that a new electric generating facility whose primary fuel
source is natural gas is eligible only for the exemption under
Section 5l of the Retailers' Occupation Tax Act.
    (c) High Impact Businesses located in federally designated
foreign trade zones or sub-zones are also eligible for
additional credits, exemptions and deductions as described in
the following Acts: Section 9-221 and Section 9-222.1 of the
Public Utilities Act; and subsection (g) of Section 201, and
Section 203 of the Illinois Income Tax Act.
    (d) Existing Illinois businesses which apply for
designation as a High Impact Business must provide the
Department with the prospective plan for which 1,500 full-time
jobs would be eliminated in the event that the business is not
designated.
    (e) New proposed facilities which apply for designation as
High Impact Business must provide the Department with proof of
alternative non-Illinois sites which would receive the
proposed investment and job creation in the event that the
business is not designated as a High Impact Business.
    (f) In the event that a business is designated a High
Impact Business and it is later determined after reasonable
notice and an opportunity for a hearing as provided under the
Illinois Administrative Procedure Act, that the business would
have placed in service in qualified property the investments
and created or retained the requisite number of jobs without
the benefits of the High Impact Business designation, the
Department shall be required to immediately revoke the
designation and notify the Director of the Department of
Revenue who shall begin proceedings to recover all wrongfully
exempted State taxes with interest. The business shall also be
ineligible for all State funded Department programs for a
period of 10 years.
    (g) The Department shall revoke a High Impact Business
designation if the participating business fails to comply with
the terms and conditions of the designation.
    (h) Prior to designating a business, the Department shall
provide the members of the General Assembly and Commission on
Government Forecasting and Accountability with a report
setting forth the terms and conditions of the designation and
guarantees that have been received by the Department in
relation to the proposed business being designated.
(Source: P.A. 93-1064, eff. 1-13-05; 93-1067, eff. 1-15-05;
94-65, eff. 6-21-05.)
 
    Section 910. The Court of Claims Act is amended by adding
Section 8.5 as follows:
 
    (705 ILCS 505/8.5 new)
    Sec. 8.5. Jurisdiction concerning the FutureGen Project.
The Court of Claims has jurisdiction concerning any public
liability action, as defined in the Clean Coal FutureGen for
Illinois Act, arising under that Act or arising from the
operation of the FutureGen Project, except that a public
liability action may be brought in the circuit court if the
cause of action is one of personal injury or wrongful death and
the injury or death was proximately caused by the storage,
escape, release, or migration of the post-injection
sequestered gas that was injected during the operation of the
FutureGen Project by the FutureGen Alliance, and the circuit
court is granted jurisdiction over these matters.
 
    Section 915. The State Lawsuit Immunity Act is amended by
changing Section 1 as follows:
 
    (745 ILCS 5/1)  (from Ch. 127, par. 801)
    Sec. 1. Except as provided in the Illinois Public Labor
Relations Act, the Court of Claims Act, and the State Officials
and Employees Ethics Act, or Section 1.5 of this Act, and,
except as provided in and to the extent provided in the Clean
Coal FutureGen for Illinois Act, the State of Illinois shall
not be made a defendant or party in any court.
(Source: P.A. 93-414, eff. 1-1-04; 93-615, eff. 11-19-03;
revised 12-19-03.)
 
    Section 997. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
 
    Section 998. Repeal. This Act is repealed on December 31,
2010 unless the FutureGen Project has been located at either
the Mattoon or Tuscola site in Illinois.
 
    Section 999. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/30/2007