96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB1912

 

Introduced 2/20/2009, by Sen. Mike Jacobs

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3501/825-65
20 ILCS 3501/825-70
20 ILCS 3501/825-75
20 ILCS 3501/830-25

    Amends the Illinois Finance Authority Act. Increases the authorization for certain agricultural assistance by $150,000,000. Authorizes bonds for "renewable energy resources projects" (in addition to clean coal and energy projects), including electric transmission lines and equipment and plants that produce renewable fuels. Allows clean coal projects to include transportation of carbon, clean coal facilities, and SNG facilities. Provides that bond authorization for these purposes is in addition to and not limited by other bond limitations in the Act. Makes other changes. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
STATE DEBT IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning State government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Finance Authority Act is amended by
5 changing Sections 825-65, 825-70, 825-75, and 830-25 as
6 follows:
 
7     (20 ILCS 3501/825-65)
8     Sec. 825-65. Clean Coal and Renewable Energy Project
9 Financing.
10     (a) Findings and declaration of policy.
11         (i) It is hereby found and declared that Illinois has
12     abundant coal resources and, in some areas of Illinois, the
13     demand for power exceeds the generating capacity.
14     Incentives to encourage the construction of coal-fired
15     electric generating plants in Illinois to ensure power
16     generating capacity into the future and to advance clean
17     coal technology and the use of Illinois coal are in the
18     best interests of all of the citizens of Illinois.
19         (ii) It is further found and declared that Illinois has
20     abundant potential and resources to develop renewable
21     energy resources projects, including renewable fuels. The
22     development of those projects will create jobs and
23     investment as well as decrease environmental impacts and

 

 

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1     promote energy independence in Illinois. Accordingly, the
2     development of those projects is in the best interests of
3     all of the citizens of Illinois.
4         (iii) The Authority is authorized to issue bonds to
5     help finance Clean Coal and Renewable Energy projects
6     pursuant to this Section.
7     (b) Definitions. Definition.
8     "Clean Coal Project and Energy projects" means (i) new
9 electric generating facilities or new gasification facilities,
10 as defined in Section 605-332 of the Department of Commerce and
11 Economic Opportunity Law of the Civil Administrative Code of
12 Illinois, which may include mine-mouth power plants, projects
13 that employ the use of clean coal technology, projects to
14 provide scrubber technology for existing energy generating
15 plants, or projects to provide electric transmission
16 facilities or new gasification facilities, including the
17 pipeline or other methods of transport that transfers carbon
18 from the point of production to the point of storage or
19 sequestration, (ii) "clean coal facility", as defined in
20 Section 1-10 of the Illinois Power Agency Act, including the
21 pipeline or other methods of transport that transfers carbon
22 from the point of production to the point of storage or
23 sequestration, or (iii) "clean coal SNG facility", as defined
24 in Section 1-10 of the Illinois Power Agency Act including the
25 pipeline or other methods of transport that transfers carbon
26 from the point of production to the point of storage or

 

 

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1 sequestration.
2     "Renewable Energy Project" means (i) a project that
3 produces renewable energy resources, as defined in Section 1-10
4 of the Illinois Power Agency Act, including the transmission
5 lines and associated equipment that transfers electricity from
6 points of supply to points of delivery, (ii) storage technology
7 for renewable energy such as lithium ion and other batteries,
8 or (iii) a plant that produces a renewable fuel, as defined in
9 Section 10 of the Illinois Renewable Fuels Development Program
10 Act.
11     (c) Creation of reserve funds. The Authority may establish
12 and maintain one or more reserve funds to enhance bonds issued
13 by the Authority for a Clean Coal Project or a Renewable and
14 Energy Project projects. There may be one or more accounts in
15 these reserve funds in which there may be deposited:
16         (1) any proceeds of the bonds issued by the Authority
17     required to be deposited therein by the terms of any
18     contract between the Authority and its bondholders or any
19     resolution of the Authority;
20         (2) any other moneys or funds of the Authority that it
21     may determine to deposit therein from any other source; and
22         (3) any other moneys or funds made available to the
23     Authority. Subject to the terms of any pledge to the owners
24     of any bonds, moneys in any reserve fund may be held and
25     applied to the payment of principal, premium, if any, and
26     interest of such bonds.

 

 

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1     (d) Powers and duties. The Authority has the power:
2         (1) To issue bonds in one or more series pursuant to
3     one or more resolutions of the Authority for any Clean Coal
4     Project or Renewable and Energy Project projects
5     authorized under this Section, within the authorization
6     set forth in subsection subsections (e) and (f).
7         (2) To provide for the funding of any reserves or other
8     funds or accounts deemed necessary by the Authority in
9     connection with any bonds issued by the Authority.
10         (3) To pledge any funds of the Authority or funds made
11     available to the Authority that may be applied to such
12     purpose as security for any bonds or any guarantees,
13     letters of credit, insurance contracts or similar credit
14     support or liquidity instruments securing the bonds.
15         (4) To enter into agreements or contracts with third
16     parties, whether public or private, including, without
17     limitation, the United States of America, the State or any
18     department or agency thereof, to obtain any
19     appropriations, grants, loans or guarantees that are
20     deemed necessary or desirable by the Authority. Any such
21     guarantee, agreement or contract may contain terms and
22     provisions necessary or desirable in connection with the
23     program, subject to the requirements established by the
24     Act.
25         (5) To exercise such other powers as are necessary or
26     incidental to the foregoing.

 

 

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1     (e) Clean Coal Project and Renewable Energy Project bond
2 authorization and financing limits. In addition to any other
3 bonds authorized to be issued under Sections 801-40(w), 825-60,
4 830-25 and 845-5, the Authority may have outstanding, at any
5 time, bonds for the purpose enumerated in this Section 825-65
6 in an aggregate principal amount that shall not exceed
7 $3,000,000,000 $2,700,000,000, of which may be issued to
8 finance Clean Coal Projects, as defined in this Section 825-65,
9 and Renewable Energy Projects, as defined in this Section
10 825-65. no more than $300,000,000 may be issued to finance
11 transmission facilities, no more than $500,000,000 may be
12 issued to finance scrubbers at existing generating plants, no
13 more than $500,000,000 may be issued to finance alternative
14 energy sources, including renewable energy projects and no more
15 than $1,400,000,000 may be issued to finance new electric
16 generating facilities or new gasification facilities, as
17 defined in Section 605-332 of the Department of Commerce and
18 Economic Opportunity Law of the Civil Administrative Code of
19 Illinois. An application for a loan financed from bond proceeds
20 from a borrower or its affiliates for a Clean Coal Project or a
21 Renewable and Energy Project project may not be approved by the
22 Authority for an amount in excess of $450,000,000 for any one
23 borrower or its affiliates. These bonds shall not constitute an
24 indebtedness or obligation of the State of Illinois and it
25 shall be plainly stated on the face of each bond that it does
26 not constitute an indebtedness or obligation of the State of

 

 

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1 Illinois, but is payable solely from the revenues, income or
2 other assets of the Authority pledged therefor.
3     (f) The bonding authority granted under this Section is in
4 addition to and not limited by the provisions of Section 845-5.
5 Additional Clean Coal and Energy bond authorization and
6 financing limits. In addition to any other bonds authorized to
7 be issued under this Act, the Authority may issue bonds for the
8 purpose enumerated in this Section 825-65 in an aggregate
9 principal amount that shall not exceed $300,000,000.
10 (Source: P.A. 95-470, eff. 8-27-07.)
 
11     (20 ILCS 3501/825-70)
12     Sec. 825-70. Criteria for participation in the program.
13 Applications to the Authority for financing of any Clean Coal
14 or Renewable and Energy Project project shall be reviewed by
15 the Authority. Upon submission of any such application, the
16 Authority staff shall review the application for its
17 completeness and may, at the discretion of the Authority staff,
18 request such additional information as it deems necessary or
19 advisable to aid in review. If the Authority receives
20 applications for financing for Clean Coal and Renewable Energy
21 Project projects in excess of the bond authorization available
22 for such financing at any one time, it shall consider
23 applications in the order of priority as it shall determine, in
24 consultation with other State agencies.
25 (Source: P.A. 93-205, eff. 1-1-04.)
 

 

 

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1     (20 ILCS 3501/825-75)
2     Sec. 825-75. Additional Security. In the event that the
3 Authority determines that monies of the Authority will not be
4 sufficient for the payment of the principal of and interest on
5 any bonds issued by the Authority under Sections 825-65 through
6 825-75 of this Act for Clean Coal Projects or Renewable Energy
7 Projects new electric generating facilities or new
8 gasification facilities during the next State fiscal year, the
9 Chairperson, as soon as practicable, shall certify to the
10 Governor the amount required by the Authority to enable it to
11 pay such principal, premium, if any, and interest on such
12 bonds. The Governor shall submit the amount so certified to the
13 General Assembly as soon as practicable, but no later than the
14 end of the current State fiscal year. This subsection shall
15 apply to any bonds or notes as to which the Authority shall
16 have determined, in the resolution authorizing the issuance of
17 the bonds or notes, that this subsection shall apply. Whenever
18 the Authority makes such a determination, that fact shall be
19 plainly stated on the face of the bonds or notes and that fact
20 should also be reported to the Governor. In the event of a
21 withdrawal of moneys from a reserve fund established with
22 respect to any issue or issues of bonds of the Authority to pay
23 principal, premium, if any, and interest on such bonds, the
24 Chairman of the Authority, as soon as practicable, shall
25 certify to the Governor the amount required to restore the

 

 

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1 reserve fund to the level required in the resolution or
2 indenture securing those bonds. The Governor shall submit the
3 amount so certified to the General Assembly as soon as
4 practicable, but no later than the end of the current State
5 fiscal year. The Authority shall obtain written approval from
6 the Governor for any bonds and notes to be issued under this
7 Section.
8 (Source: P.A. 95-470, eff. 8-27-07.)
 
9     (20 ILCS 3501/830-25)
10     Sec. 830-25. Bonded indebtedness limitation. The Authority
11 shall not have outstanding at any one time State Guarantees
12 under Section 830-30 in an aggregate principal amount exceeding
13 $160,000,000. The Authority shall not have outstanding at any
14 one time State Guarantees under Sections 830-35, 830-45 and
15 830-50 in an aggregate principal amount exceeding $225,000,000
16 $75,000,000.
17 (Source: P.A. 93-205, eff. 1-1-04.)
 
18     Section 99. Effective date. This Act takes effect upon
19 becoming law.