Rep. William Cunningham

Filed: 3/14/2011

 

 


 

 


 
09700HB1458ham001LRB097 05385 ASK 52592 a

1
AMENDMENT TO HOUSE BILL 1458

2    AMENDMENT NO. ______. Amend House Bill 1458 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Power Agency Act is amended by
5changing Section 1-10 as follows:
 
6    (20 ILCS 3855/1-10)
7    Sec. 1-10. Definitions.
8    "Agency" means the Illinois Power Agency.
9    "Agency loan agreement" means any agreement pursuant to
10which the Illinois Finance Authority agrees to loan the
11proceeds of revenue bonds issued with respect to a project to
12the Agency upon terms providing for loan repayment installments
13at least sufficient to pay when due all principal of, interest
14and premium, if any, on those revenue bonds, and providing for
15maintenance, insurance, and other matters in respect of the
16project.

 

 

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1    "Authority" means the Illinois Finance Authority.
2    "Clean coal facility" means an electric generating
3facility that uses primarily coal as a feedstock and that
4captures and sequesters carbon emissions at the following
5levels: at least 50% of the total carbon emissions that the
6facility would otherwise emit if, at the time construction
7commences, the facility is scheduled to commence operation
8before 2016, at least 70% of the total carbon emissions that
9the facility would otherwise emit if, at the time construction
10commences, the facility is scheduled to commence operation
11during 2016 or 2017, and at least 90% of the total carbon
12emissions that the facility would otherwise emit if, at the
13time construction commences, the facility is scheduled to
14commence operation after 2017. The power block of the clean
15coal facility shall not exceed allowable emission rates for
16sulfur dioxide, nitrogen oxides, carbon monoxide, particulates
17and mercury for a natural gas-fired combined-cycle facility the
18same size as and in the same location as the clean coal
19facility at the time the clean coal facility obtains an
20approved air permit. All coal used by a clean coal facility
21shall have high volatile bituminous rank and greater than 1.7
22pounds of sulfur per million btu content, unless the clean coal
23facility does not use gasification technology and was operating
24as a conventional coal-fired electric generating facility on
25June 1, 2009 (the effective date of Public Act 95-1027).
26    "Clean coal SNG facility" means a facility that uses a

 

 

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1gasification process to produce substitute natural gas, that
2sequesters at least 90% of the total carbon emissions that the
3facility would otherwise emit and that uses petroleum coke or
4coal as a feedstock, with all such coal having a high
5bituminous rank and greater than 1.7 pounds of sulfur per
6million btu content.
7    "Commission" means the Illinois Commerce Commission.
8    "Costs incurred in connection with the development and
9construction of a facility" means:
10        (1) the cost of acquisition of all real property and
11    improvements in connection therewith and equipment and
12    other property, rights, and easements acquired that are
13    deemed necessary for the operation and maintenance of the
14    facility;
15        (2) financing costs with respect to bonds, notes, and
16    other evidences of indebtedness of the Agency;
17        (3) all origination, commitment, utilization,
18    facility, placement, underwriting, syndication, credit
19    enhancement, and rating agency fees;
20        (4) engineering, design, procurement, consulting,
21    legal, accounting, title insurance, survey, appraisal,
22    escrow, trustee, collateral agency, interest rate hedging,
23    interest rate swap, capitalized interest and other
24    financing costs, and other expenses for professional
25    services; and
26        (5) the costs of plans, specifications, site study and

 

 

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1    investigation, installation, surveys, other Agency costs
2    and estimates of costs, and other expenses necessary or
3    incidental to determining the feasibility of any project,
4    together with such other expenses as may be necessary or
5    incidental to the financing, insuring, acquisition, and
6    construction of a specific project and placing that project
7    in operation.
8    "Department" means the Department of Commerce and Economic
9Opportunity.
10    "Director" means the Director of the Illinois Power Agency.
11    "Demand-response" means measures that decrease peak
12electricity demand or shift demand from peak to off-peak
13periods.
14    "Energy efficiency" means measures that reduce the amount
15of electricity or natural gas required to achieve a given end
16use.
17    "Electric utility" has the same definition as found in
18Section 16-102 of the Public Utilities Act.
19    "Facility" means an electric generating unit or a
20co-generating unit that produces electricity along with
21related equipment necessary to connect the facility to an
22electric transmission or distribution system.
23    "Governmental aggregator" means one or more units of local
24government that individually or collectively procure
25electricity to serve residential retail electrical loads
26located within its or their jurisdiction.

 

 

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1    "Local government" means a unit of local government as
2defined in Article VII of Section 1 of the Illinois
3Constitution.
4    "Municipality" means a city, village, or incorporated
5town.
6    "Person" means any natural person, firm, partnership,
7corporation, either domestic or foreign, company, association,
8limited liability company, joint stock company, or association
9and includes any trustee, receiver, assignee, or personal
10representative thereof.
11    "Project" means the planning, bidding, and construction of
12a facility.
13    "Public utility" has the same definition as found in
14Section 3-105 of the Public Utilities Act.
15    "Real property" means any interest in land together with
16all structures, fixtures, and improvements thereon, including
17lands under water and riparian rights, any easements,
18covenants, licenses, leases, rights-of-way, uses, and other
19interests, together with any liens, judgments, mortgages, or
20other claims or security interests related to real property.
21    "Renewable energy credit" means a tradable credit that
22represents the environmental attributes of a certain amount of
23energy produced from a renewable energy resource.
24    "Renewable energy resources" includes energy and its
25associated renewable energy credit or renewable energy credits
26from wind, solar thermal energy, photovoltaic cells and panels,

 

 

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1biodiesel, crops and untreated and unadulterated organic waste
2biomass, tree waste, hydropower that does not involve new
3construction or significant expansion of hydropower dams, and
4other alternative sources of environmentally preferable
5energy. For purposes of this Act, landfill gas produced in the
6State is considered a renewable energy resource. "Renewable
7energy resources" includes biogas and biosolids produced by
8local government wastewater treatment plants in the State.
9"Renewable energy resources" does not include the incineration
10or burning of tires, garbage, general household,
11institutional, and commercial waste, industrial lunchroom or
12office waste, landscape waste other than tree waste, railroad
13crossties, utility poles, or construction or demolition
14debris, other than untreated and unadulterated waste wood.
15    "Revenue bond" means any bond, note, or other evidence of
16indebtedness issued by the Authority, the principal and
17interest of which is payable solely from revenues or income
18derived from any project or activity of the Agency.
19    "Sequester" means permanent storage of carbon dioxide by
20injecting it into a saline aquifer, a depleted gas reservoir,
21or an oil reservoir, directly or through an enhanced oil
22recovery process that may involve intermediate storage in a
23salt dome.
24    "Servicing agreement" means (i) in the case of an electric
25utility, an agreement between the owner of a clean coal
26facility and such electric utility, which agreement shall have

 

 

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1terms and conditions meeting the requirements of paragraph (3)
2of subsection (d) of Section 1-75, and (ii) in the case of an
3alternative retail electric supplier, an agreement between the
4owner of a clean coal facility and such alternative retail
5electric supplier, which agreement shall have terms and
6conditions meeting the requirements of Section 16-115(d)(5) of
7the Public Utilities Act.
8    "Substitute natural gas" or "SNG" means a gas manufactured
9by gasification of hydrocarbon feedstock, which is
10substantially interchangeable in use and distribution with
11conventional natural gas.
12    "Total resource cost test" or "TRC test" means a standard
13that is met if, for an investment in energy efficiency or
14demand-response measures, the benefit-cost ratio is greater
15than one. The benefit-cost ratio is the ratio of the net
16present value of the total benefits of the program to the net
17present value of the total costs as calculated over the
18lifetime of the measures. A total resource cost test compares
19the sum of avoided electric utility costs, representing the
20benefits that accrue to the system and the participant in the
21delivery of those efficiency measures, as well as other
22quantifiable societal benefits, including avoided natural gas
23utility costs, to the sum of all incremental costs of end-use
24measures that are implemented due to the program (including
25both utility and participant contributions), plus costs to
26administer, deliver, and evaluate each demand-side program, to

 

 

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1quantify the net savings obtained by substituting the
2demand-side program for supply resources. In calculating
3avoided costs of power and energy that an electric utility
4would otherwise have had to acquire, reasonable estimates shall
5be included of financial costs likely to be imposed by future
6regulations and legislation on emissions of greenhouse gases.
7(Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09;
895-1027, eff. 6-1-09; 96-33, eff. 7-10-09; 96-159, eff.
98-10-09; 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".