SB1603 EnrolledLRB098 08881 HLH 39012 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Finance Authority Act is amended by
5changing Sections 801-10, 801-55, 825-12, 825-65, 825-95,
6825-110, 830-10, and 830-15 as follows:
 
7    (20 ILCS 3501/801-10)
8    Sec. 801-10. Definitions. The following terms, whenever
9used or referred to in this Act, shall have the following
10meanings, except in such instances where the context may
11clearly indicate otherwise:
12    (a) The term "Authority" means the Illinois Finance
13Authority created by this Act.
14    (b) The term "project" means an industrial project,
15conservation project, housing project, public purpose project,
16higher education project, health facility project, cultural
17institution project, municipal bond program project,
18agricultural facility or agribusiness, and "project" may
19include any combination of one or more of the foregoing
20undertaken jointly by any person with one or more other
21persons.
22    (c) The term "public purpose project" means any project or
23facility including without limitation land, buildings,

 

 

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1structures, machinery, equipment and all other real and
2personal property, which is authorized or required by law to be
3acquired, constructed, improved, rehabilitated, reconstructed,
4replaced or maintained by any unit of government or any other
5lawful public purpose which is authorized or required by law to
6be undertaken by any unit of government.
7    (d) The term "industrial project" means the acquisition,
8construction, refurbishment, creation, development or
9redevelopment of any facility, equipment, machinery, real
10property or personal property for use by any instrumentality of
11the State or its political subdivisions, for use by any person
12or institution, public or private, for profit or not for
13profit, or for use in any trade or business including, but not
14limited to, any industrial, manufacturing or commercial
15enterprise that is located within or outside the State,
16provided that, with respect to a project involving property
17located outside the State, the property must be owned,
18operated, leased or managed by an entity located within the
19State or an entity affiliated with an entity located within the
20State, and which is (1) a capital project including but not
21limited to: (i) land and any rights therein, one or more
22buildings, structures or other improvements, machinery and
23equipment, whether now existing or hereafter acquired, and
24whether or not located on the same site or sites; (ii) all
25appurtenances and facilities incidental to the foregoing,
26including, but not limited to utilities, access roads, railroad

 

 

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1sidings, track, docking and similar facilities, parking
2facilities, dockage, wharfage, railroad roadbed, track,
3trestle, depot, terminal, switching and signaling or related
4equipment, site preparation and landscaping; and (iii) all
5non-capital costs and expenses relating thereto or (2) any
6addition to, renovation, rehabilitation or improvement of a
7capital project or (3) any activity or undertaking within or
8outside the State, provided that, with respect to a project
9involving property located outside the State, the property must
10be owned, operated, leased or managed by an entity located
11within the State or an entity affiliated with an entity located
12within the State, which the Authority determines will aid,
13assist or encourage economic growth, development or
14redevelopment within the State or any area thereof, will
15promote the expansion, retention or diversification of
16employment opportunities within the State or any area thereof
17or will aid in stabilizing or developing any industry or
18economic sector of the State economy. The term "industrial
19project" also means the production of motion pictures.
20    (e) The term "bond" or "bonds" shall include bonds, notes
21(including bond, grant or revenue anticipation notes),
22certificates and/or other evidences of indebtedness
23representing an obligation to pay money, including refunding
24bonds.
25    (f) The terms "lease agreement" and "loan agreement" shall
26mean: (i) an agreement whereby a project acquired by the

 

 

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1Authority by purchase, gift or lease is leased to any person,
2corporation or unit of local government which will use or cause
3the project to be used as a project as heretofore defined upon
4terms providing for lease rental payments at least sufficient
5to pay when due all principal of, interest and premium, if any,
6on any bonds of the Authority issued with respect to such
7project, providing for the maintenance, insuring and operation
8of the project on terms satisfactory to the Authority,
9providing for disposition of the project upon termination of
10the lease term, including purchase options or abandonment of
11the premises, and such other terms as may be deemed desirable
12by the Authority, or (ii) any agreement pursuant to which the
13Authority agrees to loan the proceeds of its bonds issued with
14respect to a project or other funds of the Authority to any
15person which will use or cause the project to be used as a
16project as heretofore defined upon terms providing for loan
17repayment installments at least sufficient to pay when due all
18principal of, interest and premium, if any, on any bonds of the
19Authority, if any, issued with respect to the project, and
20providing for maintenance, insurance and other matters as may
21be deemed desirable by the Authority.
22    (g) The term "financial aid" means the expenditure of
23Authority funds or funds provided by the Authority through the
24issuance of its bonds, notes or other evidences of indebtedness
25or from other sources for the development, construction,
26acquisition or improvement of a project.

 

 

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1    (h) The term "person" means an individual, corporation,
2unit of government, business trust, estate, trust, partnership
3or association, 2 or more persons having a joint or common
4interest, or any other legal entity.
5    (i) The term "unit of government" means the federal
6government, the State or unit of local government, a school
7district, or any agency or instrumentality, office, officer,
8department, division, bureau, commission, college or
9university thereof.
10    (j) The term "health facility" means: (a) any public or
11private institution, place, building, or agency required to be
12licensed under the Hospital Licensing Act; (b) any public or
13private institution, place, building, or agency required to be
14licensed under the Nursing Home Care Act, the Specialized
15Mental Health Rehabilitation Act, or the ID/DD Community Care
16Act; (c) any public or licensed private hospital as defined in
17the Mental Health and Developmental Disabilities Code; (d) any
18such facility exempted from such licensure when the Director of
19Public Health attests that such exempted facility meets the
20statutory definition of a facility subject to licensure; (e)
21any other public or private health service institution, place,
22building, or agency which the Director of Public Health attests
23is subject to certification by the Secretary, U.S. Department
24of Health and Human Services under the Social Security Act, as
25now or hereafter amended, or which the Director of Public
26Health attests is subject to standard-setting by a recognized

 

 

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1public or voluntary accrediting or standard-setting agency;
2(f) any public or private institution, place, building or
3agency engaged in providing one or more supporting services to
4a health facility; (g) any public or private institution,
5place, building or agency engaged in providing training in the
6healing arts, including but not limited to schools of medicine,
7dentistry, osteopathy, optometry, podiatry, pharmacy or
8nursing, schools for the training of x-ray, laboratory or other
9health care technicians and schools for the training of
10para-professionals in the health care field; (h) any public or
11private congregate, life or extended care or elderly housing
12facility or any public or private home for the aged or infirm,
13including, without limitation, any Facility as defined in the
14Life Care Facilities Act; (i) any public or private mental,
15emotional or physical rehabilitation facility or any public or
16private educational, counseling, or rehabilitation facility or
17home, for those persons with a developmental disability, those
18who are physically ill or disabled, the emotionally disturbed,
19those persons with a mental illness or persons with learning or
20similar disabilities or problems; (j) any public or private
21alcohol, drug or substance abuse diagnosis, counseling
22treatment or rehabilitation facility, (k) any public or private
23institution, place, building or agency licensed by the
24Department of Children and Family Services or which is not so
25licensed but which the Director of Children and Family Services
26attests provides child care, child welfare or other services of

 

 

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1the type provided by facilities subject to such licensure; (l)
2any public or private adoption agency or facility; and (m) any
3public or private blood bank or blood center. "Health facility"
4also means a public or private structure or structures suitable
5primarily for use as a laboratory, laundry, nurses or interns
6residence or other housing or hotel facility used in whole or
7in part for staff, employees or students and their families,
8patients or relatives of patients admitted for treatment or
9care in a health facility, or persons conducting business with
10a health facility, physician's facility, surgicenter,
11administration building, research facility, maintenance,
12storage or utility facility and all structures or facilities
13related to any of the foregoing or required or useful for the
14operation of a health facility, including parking or other
15facilities or other supporting service structures required or
16useful for the orderly conduct of such health facility. "Health
17facility" also means, with respect to a project located outside
18the State, any public or private institution, place, building,
19or agency which provides services similar to those described
20above, provided that such project is owned, operated, leased or
21managed by a participating health institution located within
22the State, or a participating health institution affiliated
23with an entity located within the State.
24    (k) The term "participating health institution" means (i) a
25private corporation or association or (ii) a public entity of
26this State, in either case authorized by the laws of this State

 

 

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1or the applicable state to provide or operate a health facility
2as defined in this Act and which, pursuant to the provisions of
3this Act, undertakes the financing, construction or
4acquisition of a project or undertakes the refunding or
5refinancing of obligations, loans, indebtedness or advances as
6provided in this Act.
7    (l) The term "health facility project", means a specific
8health facility work or improvement to be financed or
9refinanced (including without limitation through reimbursement
10of prior expenditures), acquired, constructed, enlarged,
11remodeled, renovated, improved, furnished, or equipped, with
12funds provided in whole or in part hereunder, any accounts
13receivable, working capital, liability or insurance cost or
14operating expense financing or refinancing program of a health
15facility with or involving funds provided in whole or in part
16hereunder, or any combination thereof.
17    (m) The term "bond resolution" means the resolution or
18resolutions authorizing the issuance of, or providing terms and
19conditions related to, bonds issued under this Act and
20includes, where appropriate, any trust agreement, trust
21indenture, indenture of mortgage or deed of trust providing
22terms and conditions for such bonds.
23    (n) The term "property" means any real, personal or mixed
24property, whether tangible or intangible, or any interest
25therein, including, without limitation, any real estate,
26leasehold interests, appurtenances, buildings, easements,

 

 

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1equipment, furnishings, furniture, improvements, machinery,
2rights of way, structures, accounts, contract rights or any
3interest therein.
4    (o) The term "revenues" means, with respect to any project,
5the rents, fees, charges, interest, principal repayments,
6collections and other income or profit derived therefrom.
7    (p) The term "higher education project" means, in the case
8of a private institution of higher education, an educational
9facility to be acquired, constructed, enlarged, remodeled,
10renovated, improved, furnished, or equipped, or any
11combination thereof.
12    (q) The term "cultural institution project" means, in the
13case of a cultural institution, a cultural facility to be
14acquired, constructed, enlarged, remodeled, renovated,
15improved, furnished, or equipped, or any combination thereof.
16    (r) The term "educational facility" means any property
17located within the State, or any property located outside the
18State, provided that, if the property is located outside the
19State, it must be owned, operated, leased or managed by an
20entity located within the State or an entity affiliated with an
21entity located within the State, in each case constructed or
22acquired before or after the effective date of this Act, which
23is or will be, in whole or in part, suitable for the
24instruction, feeding, recreation or housing of students, the
25conducting of research or other work of a private institution
26of higher education, the use by a private institution of higher

 

 

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1education in connection with any educational, research or
2related or incidental activities then being or to be conducted
3by it, or any combination of the foregoing, including, without
4limitation, any such property suitable for use as or in
5connection with any one or more of the following: an academic
6facility, administrative facility, agricultural facility,
7assembly hall, athletic facility, auditorium, boating
8facility, campus, communication facility, computer facility,
9continuing education facility, classroom, dining hall,
10dormitory, exhibition hall, fire fighting facility, fire
11prevention facility, food service and preparation facility,
12gymnasium, greenhouse, health care facility, hospital,
13housing, instructional facility, laboratory, library,
14maintenance facility, medical facility, museum, offices,
15parking area, physical education facility, recreational
16facility, research facility, stadium, storage facility,
17student union, study facility, theatre or utility.
18    (s) The term "cultural facility" means any property located
19within the State, or any property located outside the State,
20provided that, if the property is located outside the State, it
21must be owned, operated, leased or managed by an entity located
22within the State or an entity affiliated with an entity located
23within the State, in each case constructed or acquired before
24or after the effective date of this Act, which is or will be,
25in whole or in part, suitable for the particular purposes or
26needs of a cultural institution, including, without

 

 

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1limitation, any such property suitable for use as or in
2connection with any one or more of the following: an
3administrative facility, aquarium, assembly hall, auditorium,
4botanical garden, exhibition hall, gallery, greenhouse,
5library, museum, scientific laboratory, theater or zoological
6facility, and shall also include, without limitation, books,
7works of art or music, animal, plant or aquatic life or other
8items for display, exhibition or performance. The term
9"cultural facility" includes buildings on the National
10Register of Historic Places which are owned or operated by
11nonprofit entities.
12    (t) "Private institution of higher education" means a
13not-for-profit educational institution which is not owned by
14the State or any political subdivision, agency,
15instrumentality, district or municipality thereof, which is
16authorized by law to provide a program of education beyond the
17high school level and which:
18        (1) Admits as regular students only individuals having
19    a certificate of graduation from a high school, or the
20    recognized equivalent of such a certificate;
21        (2) Provides an educational program for which it awards
22    a bachelor's degree, or provides an educational program,
23    admission into which is conditioned upon the prior
24    attainment of a bachelor's degree or its equivalent, for
25    which it awards a postgraduate degree, or provides not less
26    than a 2-year program which is acceptable for full credit

 

 

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1    toward such a degree, or offers a 2-year program in
2    engineering, mathematics, or the physical or biological
3    sciences which is designed to prepare the student to work
4    as a technician and at a semiprofessional level in
5    engineering, scientific, or other technological fields
6    which require the understanding and application of basic
7    engineering, scientific, or mathematical principles or
8    knowledge;
9        (3) Is accredited by a nationally recognized
10    accrediting agency or association or, if not so accredited,
11    is an institution whose credits are accepted, on transfer,
12    by not less than 3 institutions which are so accredited,
13    for credit on the same basis as if transferred from an
14    institution so accredited, and holds an unrevoked
15    certificate of approval under the Private College Act from
16    the Board of Higher Education, or is qualified as a "degree
17    granting institution" under the Academic Degree Act; and
18        (4) Does not discriminate in the admission of students
19    on the basis of race or color. "Private institution of
20    higher education" also includes any "academic
21    institution".
22    (u) The term "academic institution" means any
23not-for-profit institution which is not owned by the State or
24any political subdivision, agency, instrumentality, district
25or municipality thereof, which institution engages in, or
26facilitates academic, scientific, educational or professional

 

 

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1research or learning in a field or fields of study taught at a
2private institution of higher education. Academic institutions
3include, without limitation, libraries, archives, academic,
4scientific, educational or professional societies,
5institutions, associations or foundations having such
6purposes.
7    (v) The term "cultural institution" means any
8not-for-profit institution which is not owned by the State or
9any political subdivision, agency, instrumentality, district
10or municipality thereof, which institution engages in the
11cultural, intellectual, scientific, educational or artistic
12enrichment of the people of the State. Cultural institutions
13include, without limitation, aquaria, botanical societies,
14historical societies, libraries, museums, performing arts
15associations or societies, scientific societies and zoological
16societies.
17    (w) The term "affiliate" means, with respect to financing
18of an agricultural facility or an agribusiness, any lender, any
19person, firm or corporation controlled by, or under common
20control with, such lender, and any person, firm or corporation
21controlling such lender.
22    (x) The term "agricultural facility" means land, any
23building or other improvement thereon or thereto, and any
24personal properties deemed necessary or suitable for use,
25whether or not now in existence, in farming, ranching, the
26production of agricultural commodities (including, without

 

 

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1limitation, the products of aquaculture, hydroponics and
2silviculture) or the treating, processing or storing of such
3agricultural commodities when such activities are customarily
4engaged in by farmers as a part of farming and which land,
5building, improvement or personal property is located within
6the State, or is located outside the State, provided, that if
7such property is located outside the State, it must be owned,
8operated, leased, or managed by an entity located within the
9State or an entity affiliated with an entity located within the
10State.
11    (y) The term "lender" with respect to financing of an
12agricultural facility or an agribusiness, means any federal or
13State chartered bank, Federal Land Bank, Production Credit
14Association, Bank for Cooperatives, federal or State chartered
15savings and loan association or building and loan association,
16Small Business Investment Company or any other institution
17qualified within this State to originate and service loans,
18including, but without limitation to, insurance companies,
19credit unions and mortgage loan companies. "Lender" also means
20a wholly owned subsidiary of a manufacturer, seller or
21distributor of goods or services that makes loans to businesses
22or individuals, commonly known as a "captive finance company".
23    (z) The term "agribusiness" means any sole proprietorship,
24limited partnership, co-partnership, joint venture,
25corporation or cooperative which operates or will operate a
26facility located within the State or outside the State,

 

 

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1provided, that if any facility is located outside the State, it
2must be owned, operated, leased, or managed by an entity
3located within the State or an entity affiliated with an entity
4located within the State, of Illinois that is related to the
5processing of agricultural commodities (including, without
6limitation, the products of aquaculture, hydroponics and
7silviculture) or the manufacturing, production or construction
8of agricultural buildings, structures, equipment, implements,
9and supplies, or any other facilities or processes used in
10agricultural production. Agribusiness includes but is not
11limited to the following:
12        (1) grain handling and processing, including grain
13    storage, drying, treatment, conditioning, mailing and
14    packaging;
15        (2) seed and feed grain development and processing;
16        (3) fruit and vegetable processing, including
17    preparation, canning and packaging;
18        (4) processing of livestock and livestock products,
19    dairy products, poultry and poultry products, fish or
20    apiarian products, including slaughter, shearing,
21    collecting, preparation, canning and packaging;
22        (5) fertilizer and agricultural chemical
23    manufacturing, processing, application and supplying;
24        (6) farm machinery, equipment and implement
25    manufacturing and supplying;
26        (7) manufacturing and supplying of agricultural

 

 

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1    commodity processing machinery and equipment, including
2    machinery and equipment used in slaughter, treatment,
3    handling, collecting, preparation, canning or packaging of
4    agricultural commodities;
5        (8) farm building and farm structure manufacturing,
6    construction and supplying;
7        (9) construction, manufacturing, implementation,
8    supplying or servicing of irrigation, drainage and soil and
9    water conservation devices or equipment;
10        (10) fuel processing and development facilities that
11    produce fuel from agricultural commodities or byproducts;
12        (11) facilities and equipment for processing and
13    packaging agricultural commodities specifically for
14    export;
15        (12) facilities and equipment for forestry product
16    processing and supplying, including sawmilling operations,
17    wood chip operations, timber harvesting operations, and
18    manufacturing of prefabricated buildings, paper, furniture
19    or other goods from forestry products;
20        (13) facilities and equipment for research and
21    development of products, processes and equipment for the
22    production, processing, preparation or packaging of
23    agricultural commodities and byproducts.
24    (aa) The term "asset" with respect to financing of any
25agricultural facility or any agribusiness, means, but is not
26limited to the following: cash crops or feed on hand; livestock

 

 

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1held for sale; breeding stock; marketable bonds and securities;
2securities not readily marketable; accounts receivable; notes
3receivable; cash invested in growing crops; net cash value of
4life insurance; machinery and equipment; cars and trucks; farm
5and other real estate including life estates and personal
6residence; value of beneficial interests in trusts; government
7payments or grants; and any other assets.
8    (bb) The term "liability" with respect to financing of any
9agricultural facility or any agribusiness shall include, but
10not be limited to the following: accounts payable; notes or
11other indebtedness owed to any source; taxes; rent; amounts
12owed on real estate contracts or real estate mortgages;
13judgments; accrued interest payable; and any other liability.
14    (cc) The term "Predecessor Authorities" means those
15authorities as described in Section 845-75.
16    (dd) The term "housing project" means a specific work or
17improvement located within the State or outside the State and
18undertaken to provide residential dwelling accommodations,
19including the acquisition, construction or rehabilitation of
20lands, buildings and community facilities and in connection
21therewith to provide nonhousing facilities which are part of
22the housing project, including land, buildings, improvements,
23equipment and all ancillary facilities for use for offices,
24stores, retirement homes, hotels, financial institutions,
25service, health care, education, recreation or research
26establishments, or any other commercial purpose which are or

 

 

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1are to be related to a housing development, provided that any
2work or improvement located outside the State is owned,
3operated, leased or managed by an entity located within the
4State, or any entity affiliated with an entity located within
5the State.
6    (ee) The term "conservation project" means any project
7including the acquisition, construction, rehabilitation,
8maintenance, operation, or upgrade that is intended to create
9or expand open space or to reduce energy usage through
10efficiency measures. For the purpose of this definition, "open
11space" has the definition set forth under Section 10 of the
12Illinois Open Land Trust Act.
13    (ff) The term "significant presence" means the existence
14within the State of the national or regional headquarters of an
15entity or group or such other facility of an entity or group of
16entities where a significant amount of the business functions
17are performed for such entity or group of entities.
18    (gg) The term "municipal bond issuer" means the State or
19any other state or commonwealth of the United States, or any
20unit of local government, school district, agency or
21instrumentality, office, department, division, bureau,
22commission, college or university thereof located in the State
23or any other state or commonwealth of the United States.
24    (hh) The term "municipal bond program project" means a
25program for the funding of the purchase of bonds, notes or
26other obligations issued by or on behalf of a municipal bond

 

 

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1issuer.
2(Source: P.A. 96-339, eff. 7-1-10; 96-1021, eff. 7-12-10;
397-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813, eff.
47-13-12.)
 
5    (20 ILCS 3501/801-55)
6    Sec. 801-55. Required findings for projects located
7outside the State. The Authority may approve an application to
8finance or refinance a project located outside of the State
9other than a municipal bond program project only after it has
10made the following findings with respect to such financing or
11refinancing, all of which shall be deemed conclusive:
12        (a) the entity financing or refinancing a project
13    located outside the State, or an affiliate thereof, is also
14    engaged in the financing or refinancing of a project
15    located within the State or, alternately, the entity
16    seeking the financing or refinancing, or an affiliate
17    thereof, maintains a significant presence within the
18    State;
19        (b) financing or refinancing the out-of-state project
20    would promote the economy of the State for the benefit of
21    the health, welfare, safety, trade, commerce, industry and
22    economy of the people of the State by creating employment
23    opportunities in the State or lowering the cost of
24    accessing housing, healthcare, private education, or
25    cultural institutions or undertaking industrial projects,

 

 

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1    housing projects, higher education projects, health
2    facility projects, cultural institution projects,
3    conservation projects, energy efficiency projects,
4    agricultural facilities or agribusiness in the State by
5    reducing the cost of financing, refinancing or operating
6    projects; and
7        (c) after giving effect to the financing or refinancing
8    of the out-of-state project, the Authority shall have the
9    ability to issue at least an additional $1,000,000,000 of
10    bonds under Section 845-5(a) of this Act.
11    The Authority may approve an application to finance or
12refinance a municipal bond program project located outside of
13the State only after it has made the following findings with
14respect to such financing or refinancing, all of which shall be
15deemed conclusive:
16        (1) the municipal bond program project includes the
17    purchase of bonds, notes, or obligations issued by or on
18    behalf of the State or any agency, instrumentality, office,
19    department, division, bureau, or commission thereof, or
20    any unit of local government, school district, college, or
21    university of the State; and
22        (2) financing or refinancing the municipal bond
23    program project would promote the economy of the State for
24    the benefit of the health, welfare, safety, trade,
25    commerce, industry, and economy of the people of the State
26    by reducing the cost of borrowing to the State or such

 

 

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1    agency, instrumentality, office, department, division,
2    bureau, commission, unit of local government, school
3    district, college, or university.
4    The Authority shall not provide financing or refinancing
5for any project, or portion thereof, located outside the
6boundaries of the United States of America.
7    Notwithstanding any other provision of this Act, the
8Authority shall not provide financing or refinancing that uses
9State volume cap under Section 146 of the Internal Revenue Code
10of 1986, as amended, except as permitted under that Section
11146, or constitutes an indebtedness or obligation, general or
12moral, or a pledge of the full faith or loan of credit of the
13State for any project, or portion thereof, that is located
14outside of the State.
15(Source: P.A. 96-1021, eff. 7-12-10.)
 
16    (20 ILCS 3501/825-12)
17    Sec. 825-12. Conservation projects.
18    (a) The Authority may develop a program to provide
19low-interest loans and other financing to individuals,
20business entities, private organizations, and units of local
21government for conservation projects within the United States,
22provided that, if the conservation project is located outside
23of the State, it is owned, operated, leased or managed by an
24entity located within the State or any entity affiliated with
25an entity located within the State in the State of Illinois.

 

 

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1    (b) Projects under this Section may include, without
2limitation, the acquisition of land for open-space projects,
3preservation or recreation measures for open spaces, and energy
4conservation or efficiency projects that are intended to reduce
5energy usage and costs.
6    (c) The Authority, in cooperation with the Department of
7Natural Resources and the Department of Commerce and Economic
8Opportunity, may adopt any rules necessary for the
9administration of this Section. The Authority must include any
10information concerning the program under this Section on its
11Internet website.
12(Source: P.A. 95-697, eff. 11-6-07.)
 
13    (20 ILCS 3501/825-65)
14    Sec. 825-65. Clean Coal, Coal, Energy Efficiency, and
15Renewable Energy Project Financing.
16    (a) Findings and declaration of policy.
17        (i) It is hereby found and declared that Illinois has
18    abundant coal resources and, in some areas of Illinois, the
19    demand for power exceeds the generating capacity.
20    Incentives to encourage the construction of coal-fueled
21    electric generating plants in Illinois to ensure power
22    generating capacity into the future and to advance clean
23    coal technology and the use of Illinois coal are in the
24    best interests of all of the citizens of Illinois.
25        (ii) It is further found and declared that Illinois has

 

 

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1    abundant potential and resources to develop renewable
2    energy resource projects and that there are many
3    opportunities to invest in cost-effective energy
4    efficiency projects throughout the State. The development
5    of those projects will create jobs and investment as well
6    as decrease environmental impacts and promote energy
7    independence in Illinois. Accordingly, the development of
8    those projects is in the best interests of all of the
9    citizens of Illinois.
10        (iii) The Authority is authorized to issue bonds to
11    help finance Clean Coal, Coal, Energy Efficiency, and
12    Renewable Energy projects pursuant to this Section.
13    (b) Definitions.
14        (i) "Clean Coal Project" means (A) "clean coal
15    facility", as defined in Section 1-10 of the Illinois Power
16    Agency Act; (B) "clean coal SNG facility", as defined in
17    Section 1-10 of the Illinois Power Agency Act; (C)
18    transmission lines and associated equipment that transfer
19    electricity from points of supply to points of delivery for
20    projects described in this subsection (b); (D) pipelines or
21    other methods to transfer carbon dioxide from the point of
22    production to the point of storage or sequestration for
23    projects described in this subsection (b); or (E) projects
24    to provide carbon abatement technology for existing
25    generating facilities.
26        (ii) "Coal Project" means new electric generating

 

 

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1    facilities or new gasification facilities, as defined in
2    Section 605-332 of the Department of Commerce and Economic
3    Opportunity Law of the Civil Administrative Code of
4    Illinois, which may include mine-mouth power plants,
5    projects that employ the use of clean coal technology,
6    projects to provide scrubber technology for existing
7    energy generating plants, or projects to provide electric
8    transmission facilities or new gasification facilities.
9        (iii) "Energy Efficiency Project" means measures that
10    reduce the amount of electricity or natural gas required to
11    achieve a given end use, consistent with Section 1-10 of
12    the Illinois Power Agency Act. "Energy Efficiency Project"
13    also includes measures that reduce the total Btus of
14    electricity and natural gas needed to meet the end use or
15    uses consistent with Section 1-10 of the Illinois Power
16    Agency Act.
17        (iv) "Renewable Energy Project" means (A) a project
18    that uses renewable energy resources, as defined in Section
19    1-10 of the Illinois Power Agency Act; (B) a project that
20    uses environmentally preferable technologies and practices
21    that result in improvements to the production of renewable
22    fuels, including but not limited to, cellulosic
23    conversion, water and energy conservation, fractionation,
24    alternative feedstocks, or reduced green house gas
25    emissions; (C) transmission lines and associated equipment
26    that transfer electricity from points of supply to points

 

 

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1    of delivery for projects described in this subsection (b);
2    or (D) projects that use technology for the storage of
3    renewable energy, including, without limitation, the use
4    of battery or electrochemical storage technology for
5    mobile or stationary applications.
6    (c) Creation of reserve funds. The Authority may establish
7and maintain one or more reserve funds to enhance bonds issued
8by the Authority for a Clean Coal Project, a Coal Project, an
9Energy Efficiency Project, or a Renewable Energy Project. There
10may be one or more accounts in these reserve funds in which
11there may be deposited:
12        (1) any proceeds of the bonds issued by the Authority
13    required to be deposited therein by the terms of any
14    contract between the Authority and its bondholders or any
15    resolution of the Authority;
16        (2) any other moneys or funds of the Authority that it
17    may determine to deposit therein from any other source; and
18        (3) any other moneys or funds made available to the
19    Authority. Subject to the terms of any pledge to the owners
20    of any bonds, moneys in any reserve fund may be held and
21    applied to the payment of principal, premium, if any, and
22    interest of such bonds.
23    (d) Powers and duties. The Authority has the power:
24        (1) To issue bonds in one or more series pursuant to
25    one or more resolutions of the Authority for any Clean Coal
26    Project, Coal Project, Energy Efficiency Project, or

 

 

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1    Renewable Energy Project authorized under this Section,
2    within the authorization set forth in subsection (e).
3        (2) To provide for the funding of any reserves or other
4    funds or accounts deemed necessary by the Authority in
5    connection with any bonds issued by the Authority.
6        (3) To pledge any funds of the Authority or funds made
7    available to the Authority that may be applied to such
8    purpose as security for any bonds or any guarantees,
9    letters of credit, insurance contracts or similar credit
10    support or liquidity instruments securing the bonds.
11        (4) To enter into agreements or contracts with third
12    parties, whether public or private, including, without
13    limitation, the United States of America, the State or any
14    department or agency thereof, to obtain any
15    appropriations, grants, loans or guarantees that are
16    deemed necessary or desirable by the Authority. Any such
17    guarantee, agreement or contract may contain terms and
18    provisions necessary or desirable in connection with the
19    program, subject to the requirements established by the
20    Act.
21        (5) To exercise such other powers as are necessary or
22    incidental to the foregoing.
23    (e) Clean Coal Project, Coal Project, Energy Efficiency
24Project, and Renewable Energy Project bond authorization and
25financing limits. In addition to any other bonds authorized to
26be issued under Sections 801-40(w), 825-60, 830-25 and 845-5,

 

 

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1the Authority may have outstanding, at any time, bonds for the
2purpose enumerated in this Section 825-65 in an aggregate
3principal amount that shall not exceed $3,000,000,000, subject
4to the following limitations: (i) up to $300,000,000 may be
5issued to finance projects, as described in clause (C) of
6subsection (b)(i) and clause (C) of subsection (b)(iv) of this
7Section 825-65; (ii) up to $500,000,000 may be issued to
8finance projects, as described in clauses (D) and (E) of
9subsection (b)(i) of this Section 825-65; (iii) up to
10$2,000,000,000 may be issued to finance Clean Coal Projects, as
11described in clauses (A) and (B) of subsection (b)(i) of this
12Section 825-65 and Coal Projects, as described in subsection
13(b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000
14may be issued to finance Energy Efficiency Projects, as
15described in subsection (b)(iii) of this Section 825-65 and
16Renewable Energy Projects, as described in clauses (A), (B),
17and (D) of subsection (b)(iii) of this Section 825-65. An
18application for a loan financed from bond proceeds from a
19borrower or its affiliates for a Clean Coal Project, a Coal
20Project, Energy Efficiency Project, or a Renewable Energy
21Project may not be approved by the Authority for an amount in
22excess of $450,000,000 for any borrower or its affiliates. A
23Clean Coal Project or Coal Project must be located within the
24State. An Energy Efficiency Project may be located within the
25State or outside the State, provided that, if the Energy
26Efficiency Project is located outside of the State, it must be

 

 

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1owned, operated, leased, or managed by an entity located within
2the State or any entity affiliated with an entity located
3within the State. These bonds shall not constitute an
4indebtedness or obligation of the State of Illinois and it
5shall be plainly stated on the face of each bond that it does
6not constitute an indebtedness or obligation of the State of
7Illinois, but is payable solely from the revenues, income or
8other assets of the Authority pledged therefor.
9    (f) The bonding authority granted under this Section is in
10addition to and not limited by the provisions of Section 845-5.
11(Source: P.A. 95-470, eff. 8-27-07; 96-103, eff. 1-1-10;
1296-817, eff. 1-1-10.)
 
13    (20 ILCS 3501/825-95)
14    Sec. 825-95. Emerald ash borer revolving loan program.
15    (a) The Illinois Finance Authority may shall administer an
16emerald ash borer revolving loan program. The program shall
17provide low-interest or zero-interest loans to units of local
18government for the treatment of standing trees and replanting
19of trees on public lands that are within emerald ash borer
20quarantine areas as established by the Illinois Department of
21Agriculture. The Authority may shall make loans based on the
22recommendation of the Department of Agriculture. For the
23purposes of this Section, "treatment" means the
24administration, by environmentally sensitive processes and
25methods, of products and materials proven by academic research

 

 

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1to protect ash trees from the invasive Emerald Ash Borer in
2order to prevent or reverse the damage and preserve the trees.
3    (b) The loan funds, subject to appropriation, must be paid
4out of the Emerald Ash Borer Revolving Loan Fund, a special
5fund created in the State treasury. The moneys in the Fund
6consist of any moneys transferred or appropriated into the Fund
7as well as all repayments of loans made under this program.
8Moneys in the Fund may be used only for loans to units of local
9government for the treatment of standing trees and replanting
10of trees within emerald ash borer quarantine areas established
11by the Department of Agriculture and for no other purpose. All
12interest earned on moneys in the Fund must be deposited into
13the Fund.
14    (c) A loan for the treatment of standing trees and
15replanting of trees on public lands within emerald ash borer
16quarantine areas established by the Department of Agriculture
17may not exceed $5,000,000 to any one unit of local government.
18The repayment period for the loan may not exceed 20 years. The
19unit of local government shall repay, each year, at least 5% of
20the principal amount borrowed or the remaining balance of the
21loan, whichever is less. All repayments of loans must be
22deposited into the Emerald Ash Borer Revolving Loan Fund.
23    (d) Any loan under this Section to a unit of local
24government may not exceed the moneys that the unit of local
25government expends or dedicates for the reforestation project
26for which the loan is made.

 

 

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1    (e) The Department of Agriculture may enter into agreements
2with a unit of local government under which the unit of local
3government is authorized to assist the Department in carrying
4out its duties in a quarantined area, including inspection and
5eradication of any dangerous insect or dangerous plant disease,
6and including the transportation, processing, and disposal of
7diseased material. The Department is authorized to provide
8compensation or financial assistance to the unit of local
9government for its costs.
10    (f) The Authority, with the assistance of the Department of
11Agriculture and the Department of Natural Resources, shall
12adopt rules to administer the program under this Section.
13(Source: P.A. 95-588, eff. 9-4-07; 95-876, eff. 8-21-08.)
 
14    (20 ILCS 3501/825-110)
15    Sec. 825-110. Implementation of ARRA provisions regarding
16qualified energy conservation bonds.
 
17(a) Definitions.
18        (i) "Affected local government" means any county or
19    municipality within the State if the county or municipality
20    has a population of 100,000 or more, as defined in Section
21    54D(e)(2)(C) of the Code.
22        (ii) "Allocation amount" means the $133,846,000 amount
23    of qualified energy conservation bonds authorized under
24    ARRA for the financing of qualifying projects located

 

 

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1    within the State and the sub-allocation of those amounts
2    among each affected local government.
3        (iii) "ARRA" means, collectively, the American
4    Recovery and Reinvestment Act of 2009, including, without
5    limitation, Section 54D of the Code; the guidance provided
6    by the Internal Revenue Service applicable to qualified
7    energy conservation bonds; and any legislation
8    subsequently adopted by the United States Congress to
9    extend or expand the economic development bond financing
10    incentives authorized by ARRA.
11        (iv) "ARRA implementing regulations" means the
12    regulations promulgated by the Authority as further
13    described in subdivision (c)(iv) of this Section to
14    implement the provisions of this Section.
15        (v) "Code" means the Internal Revenue Code of 1986, as
16    amended.
17        (vi) "Qualified energy conservation bond" means any
18    qualified energy conservation bond issued pursuant to
19    Section 54D of the Code.
20        (vii) "Qualified energy conservation bond allocation"
21    means an allocation of authority to issue qualified energy
22    conservation bonds granted pursuant to Section 54D of the
23    Code.
24        (viii) "Regional authority" means the Central Illinois
25    Economic Development Authority, Eastern Illinois Economic
26    Development Authority, Joliet Arsenal Development

 

 

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1    Authority, Quad Cities Regional Economic Development
2    Authority, Riverdale Development Authority, Southeastern
3    Illinois Economic Development Authority, Southern Illinois
4    Development Authority, Southwestern Illinois Development
5    Authority, Tri-County River Valley Development Authority,
6    Upper Illinois River Valley Development Authority,
7    Illinois Urban Development Authority, Western Illinois
8    Economic Development Authority, or Will-Kankakee Regional
9    Development Authority.
10        (ix) "Sub-allocation" means the portion of the
11    allocation amount allocated to each affected local
12    government.
13        (x) "Waived qualified energy conservation bond
14    allocation" means the amount of the qualified energy
15    conservation bond allocation that an affected local
16    government elects to reallocate to the State pursuant to
17    Section 54D(e)(2)(B) of the Code.
18        (xi) "Waiver agreement" means an agreement between the
19    Authority and an affected local government providing for
20    the reallocation, in whole or in part, of that affected
21    local government's sub-allocation to the Authority. The
22    waiver agreement may provide for the payment of an affected
23    local government's reasonable fees and costs as determined
24    by the Authority in connection with the affected local
25    government's reallocation of its sub-allocation.
 

 

 

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1(b) Findings.
2    It is found and declared that:
3        (i) it is in the public interest and for the benefit of
4    the State to maximize the use of economic development
5    incentives authorized by ARRA;
6        (ii) those incentives include the maximum use of the
7    allocation amount for the issuance of qualified energy
8    conservation bonds to promote energy conservation under
9    the applicable provisions of ARRA; and
10        (iii) those incentives also include the issuance by the
11    Authority of qualified energy conservation bonds for the
12    purposes of financing qualifying projects to be financed
13    with proceeds of qualified energy conservation bonds.
 
14(c) Powers of Authority.
15        (i) In order to carry out the provisions of ARRA and
16    further the purposes of this Section, the Authority has:
17            (A) the power to receive from any affected local
18        government its sub-allocation that it voluntarily
19        waives to the Authority, in whole or in part, for
20        allocation by the Authority to a regional authority
21        specifically designated by that affected local
22        government, and the Authority shall reallocate that
23        waived qualified energy conservation bond allocation
24        to the regional authority specifically designated by
25        that affected local government; provided that (1) the

 

 

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1        affected local government must take official action by
2        resolution or ordinance, as applicable, to waive the
3        sub-allocation to the Authority and specifically
4        designate that its waived qualified energy
5        conservation bond allocation should be reallocated to
6        a regional authority; (2) the regional authority must
7        use the sub-allocation to issue qualified energy
8        conservation bonds on or before August 16, 2010 and, if
9        qualified energy conservation bonds are not issued on
10        or before August 16, 2010, the sub-allocation shall be
11        deemed waived to the Authority for reallocation by the
12        Authority to qualifying projects; and (3) the proceeds
13        of the qualified energy conservation bonds must be used
14        for qualified projects within the jurisdiction of the
15        applicable regional authority;
16            (B) at the Authority's sole discretion, the power
17        to reallocate any sub-allocation deemed waived to the
18        Authority pursuant to subsection (c)(i)(A)(2) back to
19        the Regional Authority that had the sub-allocation;
20            (C) the power to enter into waiver agreements with
21        affected local governments to provide for the
22        reallocation, in whole or in part, of their
23        sub-allocations, to receive waived qualified energy
24        conservation bond allocations from those affected
25        local governments, and to use those waived qualified
26        energy conservation bond allocations, in whole or in

 

 

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1        part, to issue qualified energy conservation bonds of
2        the Authority for qualifying projects or to reallocate
3        those qualified energy conservation bond allocations,
4        in whole or in part, to a county or municipality to
5        issue its own energy conservation bonds for qualifying
6        projects; and
7            (D) the power to issue qualified energy
8        conservation bonds for any project authorized to be
9        financed with proceeds thereof under the applicable
10        provisions of ARRA.
11        (ii) In addition to the powers set forth in item (i),
12    the Authority shall be the sole recipient, on behalf of the
13    State, of any waived qualified energy conservation bond
14    allocations. Qualified energy conservation bond
15    allocations can be reallocated to the Authority only by
16    voluntary waiver as provided in this Section.
17        (iii) In addition to the powers set forth in items (i)
18    and (ii), the Authority has any powers otherwise enjoyed by
19    the Authority in connection with the issuance of its bonds
20    if those powers are not in conflict with any provisions
21    with respect to qualified energy conservation bonds set
22    forth in ARRA.
23        (iv) The Authority has the power to adopt regulations
24    providing for the implementation of any of the provisions
25    contained in this Section, including the provisions
26    regarding waiver agreements and reallocation of all or any

 

 

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1    portion of the allocation amount and sub-allocations and
2    the issuance of qualified energy conservation bonds;
3    except that those regulations shall not (1) provide any
4    waiver or reallocation of an affected local government's
5    sub-allocation other than a voluntary waiver as described
6    in subsection (c) or (2) be inconsistent with the
7    provisions of subsection (c)(i). Regulations adopted by
8    the Authority for determining reallocation of all or any
9    portion of a waived qualified energy conservation
10    allocation may include, but are not limited to, (1) the
11    ability of the county or municipality to issue qualified
12    energy conservation bonds by the end of a given calendar
13    year, (2) the amount of jobs that will be retained or
14    created, or both, by the qualifying project to be financed
15    by qualified energy conservation bonds, and (3) the
16    geographical proximity of the qualifying project to be
17    financed by qualified energy conservation bonds to a
18    municipality or county that reallocated its sub-allocation
19    to the Authority.
 
20(d) Established dates for notice.
21    Any affected local government or regional authority that
22has issued qualified energy conservation bonds on or before the
23effective date of this Section must report its issuance of
24qualified energy conservation bonds to the Authority within 30
25days after the effective date of this Section. After the

 

 

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1effective date of this Section, any affected local government
2or any regional authority must report its issuance of qualified
3energy conservation bonds to the Authority not less than 30
4days after those bonds are issued.
 
5(e) Reports to the General Assembly.
6    Starting 60 days after the effective date of this Section
7and ending when there is no longer any allocation amount, the
8Authority shall file a report before the end 15th day of each
9fiscal year month with the General Assembly detailing its
10implementation of this Section, including but not limited to
11the dollar amount of the allocation amount that has been
12reallocated by the Authority pursuant to this Section, the
13qualified energy conservation bonds issued in the State as of
14the date of the report, and descriptions of the qualifying
15projects financed by those qualified energy conservation
16bonds.
17(Source: P.A. 96-1020, eff. 7-12-10.)
 
18    (20 ILCS 3501/830-10)
19    Sec. 830-10. (a) The Authority may shall establish a Farm
20Debt Relief Program to help provide eligible Illinois farmers
21with State assistance in meeting their farming-related debts.
22    (b) To be eligible for the program, a person must (1) be
23actively engaged in farming in this State, (2) have
24farming-related debts in an amount equal to at least 55% of the

 

 

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1person's total assets, and (3) demonstrate that he can secure
2credit from a conventional lender for the 1986 crop year.
3    (c) An eligible person may apply to the Authority, in such
4manner as the Authority may specify, for a one-time farm debt
5relief payment of up to 2% of the person's outstanding
6farming-related debt. If the Authority determines that the
7applicant is eligible for a payment under this Section, it may
8then approve a payment to the applicant. Such payment shall
9consist of a payment made by the Authority directly to one or
10more of the applicant's farming-related creditors, to be
11applied to the reduction of the applicant's farming-related
12debt. The applicant shall be entitled to select the creditor or
13creditors to receive the payment, unless the applicant is
14subject to the jurisdiction of a bankruptcy court, in which
15case the selection of the court shall control.
16    (d) Payments shall be made from the Farm Emergency
17Assistance Fund, which is hereby established as a special fund
18in the State treasury, from funds appropriated to the Authority
19for that purpose. No grant may exceed the lesser of (1) 2% of
20the applicant's outstanding farm-related debt, or (2) $2000.
21Not more than one grant under this Section may be made to any
22one person, or to any one household, or to any single farming
23operation.
24    (e) Payments to applicants having farming-related debts in
25an amount equal to at least 55% of the person's total assets,
26but less than 70%, shall be repaid by the applicant to the

 

 

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1Authority for deposit into the Farm Emergency Assistance Fund
2within five years from the date the payment was made. Repayment
3shall be made in equal installments during the five-year period
4with no additional interest charge and may be prepaid in whole
5or in part at any time. Applicants having farming-related debts
6in an amount equal to at least 70% of the person's total assets
7shall not be required to make any repayment. Assets shall
8include, but not be limited to, the following: cash crops or
9feed on hand; livestock held for sale; breeding stock;
10marketable bonds and securities; securities not readily
11marketable; accounts receivable; notes receivable; cash
12invested in growing crops; net cash value of life insurance;
13machinery and equipment; cars and trucks; farm and other real
14estate including life estates and personal residence; value of
15beneficial interests in trusts; government payments or grants;
16and any other assets. Debts shall include, but not be limited
17to, the following: accounts payable; notes or other
18indebtedness owed to any source; taxes; rent; amounts owed on
19real estate contracts or real estate mortgages; judgments;
20accrued interest payable; and any other liability.
21(Source: P.A. 93-205, eff. 1-1-04.)
 
22    (20 ILCS 3501/830-15)
23    Sec. 830-15. Interest-buy-back program.
24    (a) The Authority may shall establish an interest-buy-back
25program to subsidize the interest cost on certain loans to

 

 

SB1603 Enrolled- 40 -LRB098 08881 HLH 39012 b

1Illinois farmers.
2    (b) To be eligible an applicant must (i) be a resident of
3Illinois; (ii) be a principal operator of a farm or land; (iii)
4derive at least 50% of annual gross income from farming; and
5(iv) have a net worth of at least $10,000. The Authority shall
6establish minimum and maximum financial requirements, maximum
7payment amounts, starting and ending dates for the program, and
8other criteria.
9    (c) Lenders may apply on behalf of eligible applicants on
10forms provided by the Authority. Lenders may submit requests
11for payment on forms provided by the Authority. Lenders and
12applicants shall be responsible for any fees or charges the
13Authority may require.
14    (d) The Authority shall make payments to lenders from
15available appropriations from the General Revenue Fund.
16(Source: P.A. 93-205, eff. 1-1-04.)
 
17    Section 10. The Illinois Environmental Facilities
18Financing Act is amended by changing Sections 2 and 3 and by
19adding Section 7.5 as follows:
 
20    (20 ILCS 3515/2)  (from Ch. 127, par. 722)
21    Sec. 2. Declaration of necessity and purpose - Liberal
22construction. (a) The General Assembly finds:
23    (i) that environmental damage seriously endangers the
24public health and welfare;

 

 

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1    (ii) that such environmental damage results from air,
2water, and other resource pollution and from public water
3supply, solid waste disposal, noise, surface mining and other
4environmental problems;
5    (iii) that to reduce, control and prevent such pollution
6and problems, quality and land reclamation standards have been
7established necessitating the employment of anti-pollution and
8reclamation devices, equipment and facilities and stringent
9time schedules have been and will be imposed for compliance
10with such standards;
11    (iv) that it is desirable to provide additional and
12alternative methods of financing the costs of the acquisition
13and installation of the devices, equipment and facilities
14required to comply with the quality and land reclamation
15standards;
16    (v) that the alternative method of financing provided in
17this Act is therefore in the public interest and serves a
18public purpose in protecting and promoting the health and
19welfare of the citizens of this state by reducing, controlling
20and preventing environmental damage;
21    (vi) that it is desirable to promote the use of Illinois
22coal in a manner that is consistent with air quality and land
23reclamation standards; and
24    (vii) that it is desirable to promote the use of
25alternative methods for managing hazardous wastes and to
26provide additional and alternative methods of financing the

 

 

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1costs of establishing the recycling, incineration, physical,
2chemical and biological treatment, and other facilities
3necessary to meet the requirements of the Environmental
4Protection Act; and
5    (viii) that the environmental damage and pollution that
6occurs within this State often results from sources in other
7states, and that providing financing alternatives for
8environmental facilities that are located outside the State
9that are owned, operated, leased, managed by, or otherwise
10affiliated with, institutions located within the State can
11reduce, control, or prevent environmental damage and pollution
12within this State.
13    (b) It is the purpose of this Act, as more specifically
14described in later sections, to authorize the State authority
15to acquire, construct, reconstruct, repair, alter, improve,
16extend, own, finance, lease, sell and otherwise dispose of
17pollution control and surface mined land reclamation
18facilities to the end that the State authority may be able to
19promote the health and welfare of the people of this State and
20to vest such State authority with all powers to enable such
21State authority to accomplish such purpose; it is not intended
22by this Act that the State authority shall itself be authorized
23to operate any such pollution control, hazardous waste
24treatment or surface mined land reclamation facilities; nor
25shall any such facilities be geographically located outside the
26State of Illinois, except as otherwise provided in this Act. It

 

 

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1is the intent of the General Assembly that access to the
2benefits of the financing herein provided for shall be equally
3available to all persons.
4    (c) It is the intent of the General Assembly that the State
5authority shall give special consideration to small businesses
6as defined in paragraph (i) of Section 3 of this Act in
7authorizing the issuance of bonds for the financing of
8pollution control or hazardous waste treatment facilities in
9order to assist small businesses in surviving the economic
10burdens imposed by the required financing of such facilities.
11    (d) Notwithstanding paragraph (b) of this Section, it is
12the intent of the General Assembly that with respect to
13applications involving environmental facilities for new
14coal-fired electric steam generating plants and new coal-fired
15industrial boilers as defined in paragraph (j) of Section 3 of
16this Act, the State authority shall only finance such
17facilities where Illinois coal will be used as the primary
18source of fuel. The Authority shall impose appropriate
19financial penalties on any person who receives financing from
20the State Authority for environmental facilities based on a
21commitment to use Illinois coal as the primary source of fuel
22at a new coal-fired electric utility steam generating plant or
23new coal-fired industrial boiler and later uses a non-Illinois
24coal as the primary source of fuel.
25    (e) It is the intent of the General Assembly that the
26Authority give special consideration to projects which involve

 

 

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1a reduction in volume of hazardous waste products generated, or
2the recycling, re-use, reclamation, or treatment of hazardous
3waste.
4     (f) This Act shall be liberally construed to accomplish
5the intentions expressed herein.
6(Source: P.A. 83-1362; 83-1442.)
 
7    (20 ILCS 3515/3)  (from Ch. 127, par. 723)
8    Sec. 3. Definitions. In this Act, unless the context
9otherwise clearly requires, the terms used herein shall have
10the meanings ascribed to them as follows:
11    (a) "Bonds" means any bonds, notes, debentures, temporary,
12interim or permanent certificates of indebtedness or other
13obligations evidencing indebtedness.
14    (b) "Directing body" means the members of the State
15authority.
16    (c) "Environmental facility" or "facilities" means any
17land, interest in land, building, structure, facility, system,
18fixture, improvement, appurtenance, machinery, equipment or
19any combination thereof, and all real and personal property
20deemed necessary therewith, having to do with or the primary
21purpose of which is, reducing, controlling or preventing
22pollution, or reclaiming surface mined land. Environmental
23facilities may be located anywhere in this State and may
24include those facilities or processes used to (i) remove
25potential pollutants from coal prior to combustion, (ii) reduce

 

 

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1the volume or composition of hazardous waste by changing or
2replacing manufacturing equipment or processes, (iii) recycle
3hazardous waste, or (iv) recover resources from hazardous
4waste. Environmental facilities may also include (i) solar
5collectors, solar storage mechanisms and solar energy systems,
6as defined in Section 10-5 of the Property Tax Code; (ii)
7facilities designed to collect, store, transfer, or
8distribute, for residential, commercial or industrial use,
9heat energy which is a by-product of industrial or energy
10generation processes and which would otherwise be wasted; (iii)
11facilities designed to remove pollutants from emissions that
12result from the combustion of coal; and (iv) facilities for the
13combustion of coal in a fluidized bed boiler. Environmental
14facilities may be located outside of the State, provided that
15the environmental facility must either (i) be owned, operated,
16leased, or managed by an entity located within the State or an
17entity affiliated with an entity located within the State or
18(ii) substantially reduce, control, and prevent the
19environmental damage and pollution within the State.
20Environmental facilities include landfill gas recovery
21facilities, as defined in the Illinois Environmental
22Protection Act.
23    Environmental facilities do not include any land, interest
24in land, buildings, structure, facility, system, fixture,
25improvement, appurtenance, machinery, equipment or any
26combination thereof, and all real and personal property deemed

 

 

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1necessary therewith, having to do with a hazardous waste
2disposal site, except where such land, interest in land,
3buildings, structure, facility, system, fixture, improvement,
4appurtenance, machinery, equipment, real or personal property
5are used for the management or recovery of gas generated by a
6hazardous waste disposal site or are used for recycling,
7reclamation, tank storage or treatment in tanks which occurs on
8the same site as a hazardous waste disposal site.
9    (d) "Finance" or "financing" means the issuing of revenue
10bonds pursuant to Section 9 of this Act by the State authority
11for the purpose of using the proceeds to pay project costs for
12an environmental or hazardous waste treatment facility
13including one in or to which title at all times remains in a
14person other than the State authority, in which case the bonds
15of the Authority are secured by a pledge of one or more notes,
16debentures, bonds or other obligations, secured or unsecured,
17of any person.
18    (e) "Person" means any individual, partnership,
19copartnership, firm, company, corporation (including public
20utilities), association, joint stock company, trust, estate,
21political subdivision, state agency, or any other legal entity,
22or their legal representative, agent or assigns.
23    (f) "Pollution" means any form of environmental pollution
24including, but not limited to, water pollution, air pollution,
25land pollution, solid waste pollution, thermal pollution,
26radiation contamination, or noise pollution as determined by

 

 

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1the various standards prescribed by this state or the federal
2government and including but not limited to, anything which is
3considered as pollution or environmental damage in the
4Environmental Protection Act, approved June 29, 1970, as now or
5hereafter amended.
6    (g) "Project costs" as applied to environmental or
7hazardous waste treatment facilities financed under this Act
8means and includes the sum total of all reasonable or necessary
9costs incidental to the acquisition, construction,
10reconstruction, repair, alteration, improvement and extension
11of such environmental or hazardous waste treatment facilities
12including without limitation the cost of studies and surveys;
13plans, specifications, architectural and engineering services;
14legal, organization, marketing or other special services;
15financing, acquisition, demolition, construction, equipment
16and site development of new and rehabilitated buildings;
17rehabilitation, reconstruction, repair or remodeling of
18existing buildings and all other necessary and incidental
19expenses including an initial bond and interest reserve
20together with interest on bonds issued to finance such
21environmental or hazardous waste treatment facilities to a date
226 months subsequent to the estimated date of completion.
23    (h) "State authority" or "authority" means the Illinois
24Finance Authority created by the Illinois Finance Authority
25Act.
26    (i) "Small business" or "small businesses" means those

 

 

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1commercial and manufacturing entities which at the time of
2their application to the authority meet those criteria, as
3interpreted and applied by the State authority, for definition
4as a "small business" established for the Small Business
5Administration and set forth as Section 121.3-10 of Part 121 of
6Title 13 of the Code of Federal Regulations as such Section is
7in effect on the effective date of this amendatory Act of 1975.
8    (j) "New coal-fired electric utility steam generating
9plants" and "new coal-fired industrial boilers" means those
10plants and boilers on which construction begins after the
11effective date of this amendatory Act of 1981.
12    (k) "Hazardous waste treatment facility" means any land,
13interest in land, building, structure, facility, system,
14fixture, improvement, appurtenance, machinery, equipment, or
15any combination thereof, and all real and personal property
16deemed necessary therewith, the primary purpose of which is to
17recycle, incinerate, or physically, chemically, biologically
18or otherwise treat hazardous wastes, or to reduce the
19production of hazardous wastes by changing or replacing
20manufacturing equipment or processes, and which meets the
21requirements of the Environmental Protection Act and all
22regulations adopted thereunder.
23    (l) The term "significant presence" means the existence
24within the State of the national or regional headquarters of an
25entity or group or such other facility of an entity or group of
26entities where a significant amount of the business functions

 

 

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1are performed for such entity or group of entities.
2(Source: P.A. 93-205, eff. 1-1-04.)
 
3    (20 ILCS 3515/7.5 new)
4    Sec. 7.5. Required findings for environmental facilities
5located outside the State. The State authority may approve an
6application to finance or refinance environmental facilities
7located outside of the State only after it has made either of
8the following findings with respect to such financing or
9refinancing, all of which shall be deemed conclusive:
10        (1) that all of the following conditions exist:
11            (A) the entity financing or refinancing an
12        environmental facility located outside the State, or
13        an affiliate thereof, is also engaged in the financing
14        or refinancing of an environmental facility located
15        within the State or, alternately, the entity seeking
16        the financing or refinancing, or an affiliate thereof,
17        maintains a significant presence within the State;
18            (B) financing or refinancing the out-of-state
19        environmental facility would promote the interests of
20        the State for the benefit of the health, welfare,
21        safety, trade, commerce, industry, and economy of the
22        people of the State by reducing, controlling, or
23        preventing environmental damage and pollution within
24        the State or lowering the cost of environmental
25        facilities within the State by reducing the cost of

 

 

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1        financing, refinancing, or operating environmental
2        facilities; and
3            (C) after giving effect to the financing or
4        refinancing of the out-of-state environmental
5        facility, the State authority shall have the ability to
6        issue at least an additional $250,000,000 in bonds
7        under Section 9 of this Act; or
8        (2) that financing or refinancing the out-of-state
9    environmental facility will substantially reduce, control,
10    or prevent environmental damage within the State.
11    The State authority shall not provide financing or
12refinancing for any project, or portion thereof, located
13outside the boundaries of the United States of America.
14    Notwithstanding any other provision of this Act, the
15Authority shall not provide financing or refinancing that uses
16State volume cap under Section 146 of the Internal Revenue Code
17of 1986, as amended, except as permitted under said Section
18146, or constitutes an indebtedness or obligation, general or
19moral, or a pledge of the full faith or loan of credit of the
20State for any project, or portion thereof, that is located
21outside of the State.
 
22    Section 13. The Illinois Power Agency Act is amended by
23changing Section 1-10 as follows:
 
24    (20 ILCS 3855/1-10)

 

 

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1    Sec. 1-10. Definitions.
2    "Agency" means the Illinois Power Agency.
3    "Agency loan agreement" means any agreement pursuant to
4which the Illinois Finance Authority agrees to loan the
5proceeds of revenue bonds issued with respect to a project to
6the Agency upon terms providing for loan repayment installments
7at least sufficient to pay when due all principal of, interest
8and premium, if any, on those revenue bonds, and providing for
9maintenance, insurance, and other matters in respect of the
10project.
11    "Authority" means the Illinois Finance Authority.
12    "Clean coal facility" means an electric generating
13facility that uses primarily coal as a feedstock and that
14captures and sequesters carbon dioxide emissions at the
15following levels: at least 50% of the total carbon dioxide
16emissions that the facility would otherwise emit if, at the
17time construction commences, the facility is scheduled to
18commence operation before 2016, at least 70% of the total
19carbon dioxide emissions that the facility would otherwise emit
20if, at the time construction commences, the facility is
21scheduled to commence operation during 2016 or 2017, and at
22least 90% of the total carbon dioxide emissions that the
23facility would otherwise emit if, at the time construction
24commences, the facility is scheduled to commence operation
25after 2017. The power block of the clean coal facility shall
26not exceed allowable emission rates for sulfur dioxide,

 

 

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1nitrogen oxides, carbon monoxide, particulates and mercury for
2a natural gas-fired combined-cycle facility the same size as
3and in the same location as the clean coal facility at the time
4the clean coal facility obtains an approved air permit. All
5coal used by a clean coal facility shall have high volatile
6bituminous rank and greater than 1.7 pounds of sulfur per
7million btu content, unless the clean coal facility does not
8use gasification technology and was operating as a conventional
9coal-fired electric generating facility on June 1, 2009 (the
10effective date of Public Act 95-1027).
11    "Clean coal SNG brownfield facility" means a facility that
12(1) has commenced construction by July 1, 2015 on an urban
13brownfield site in a municipality with at least 1,000,000
14residents; (2) uses a gasification process to produce
15substitute natural gas; (3) uses coal as at least 50% of the
16total feedstock over the term of any sourcing agreement with a
17utility and the remainder of the feedstock may be either
18petroleum coke or coal, with all such coal having a high
19bituminous rank and greater than 1.7 pounds of sulfur per
20million Btu content unless the facility reasonably determines
21that it is necessary to use additional petroleum coke to
22deliver additional consumer savings, in which case the facility
23shall use coal for at least 35% of the total feedstock over the
24term of any sourcing agreement; and (4) captures and sequesters
25at least 85% of the total carbon dioxide emissions that the
26facility would otherwise emit.

 

 

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1    "Clean coal SNG facility" means a facility that uses a
2gasification process to produce substitute natural gas, that
3sequesters at least 90% of the total carbon dioxide emissions
4that the facility would otherwise emit, that uses at least 90%
5coal as a feedstock, with all such coal having a high
6bituminous rank and greater than 1.7 pounds of sulfur per
7million btu content, and that has a valid and effective permit
8to construct emission sources and air pollution control
9equipment and approval with respect to the federal regulations
10for Prevention of Significant Deterioration of Air Quality
11(PSD) for the plant pursuant to the federal Clean Air Act;
12provided, however, a clean coal SNG brownfield facility shall
13not be a clean coal SNG facility.
14    "Commission" means the Illinois Commerce Commission.
15    "Costs incurred in connection with the development and
16construction of a facility" means:
17        (1) the cost of acquisition of all real property,
18    fixtures, and improvements in connection therewith and
19    equipment, personal property, and other property, rights,
20    and easements acquired that are deemed necessary for the
21    operation and maintenance of the facility;
22        (2) financing costs with respect to bonds, notes, and
23    other evidences of indebtedness of the Agency;
24        (3) all origination, commitment, utilization,
25    facility, placement, underwriting, syndication, credit
26    enhancement, and rating agency fees;

 

 

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1        (4) engineering, design, procurement, consulting,
2    legal, accounting, title insurance, survey, appraisal,
3    escrow, trustee, collateral agency, interest rate hedging,
4    interest rate swap, capitalized interest, contingency, as
5    required by lenders, and other financing costs, and other
6    expenses for professional services; and
7        (5) the costs of plans, specifications, site study and
8    investigation, installation, surveys, other Agency costs
9    and estimates of costs, and other expenses necessary or
10    incidental to determining the feasibility of any project,
11    together with such other expenses as may be necessary or
12    incidental to the financing, insuring, acquisition, and
13    construction of a specific project and starting up,
14    commissioning, and placing that project in operation.
15    "Department" means the Department of Commerce and Economic
16Opportunity.
17    "Director" means the Director of the Illinois Power Agency.
18    "Demand-response" means measures that decrease peak
19electricity demand or shift demand from peak to off-peak
20periods.
21    "Distributed renewable energy generation device" means a
22device that is:
23        (1) powered by wind, solar thermal energy,
24    photovoltaic cells and panels, biodiesel, crops and
25    untreated and unadulterated organic waste biomass, tree
26    waste, and hydropower that does not involve new

 

 

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1    construction or significant expansion of hydropower dams;
2        (2) interconnected at the distribution system level of
3    either an electric utility as defined in this Section, an
4    alternative retail electric supplier as defined in Section
5    16-102 of the Public Utilities Act, a municipal utility as
6    defined in Section 3-105 of the Public Utilities Act, or a
7    rural electric cooperative as defined in Section 3-119 of
8    the Public Utilities Act;
9        (3) located on the customer side of the customer's
10    electric meter and is primarily used to offset that
11    customer's electricity load; and
12        (4) limited in nameplate capacity to no more than 2,000
13    kilowatts.
14    "Energy efficiency" means measures that reduce the amount
15of electricity or natural gas required to achieve a given end
16use. "Energy efficiency" also includes measures that reduce the
17total Btus of electricity and natural gas needed to meet the
18end use or uses.
19    "Electric utility" has the same definition as found in
20Section 16-102 of the Public Utilities Act.
21    "Facility" means an electric generating unit or a
22co-generating unit that produces electricity along with
23related equipment necessary to connect the facility to an
24electric transmission or distribution system.
25    "Governmental aggregator" means one or more units of local
26government that individually or collectively procure

 

 

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

 

 

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1associated renewable energy credit or renewable energy credits
2from wind, solar thermal energy, photovoltaic cells and panels,
3biodiesel, anaerobic digestion, crops and untreated and
4unadulterated organic waste biomass, tree waste, hydropower
5that does not involve new construction or significant expansion
6of hydropower dams, and other alternative sources of
7environmentally preferable energy. For purposes of this Act,
8landfill gas produced in the State is considered a renewable
9energy resource. "Renewable energy resources" does not include
10the incineration or burning of tires, garbage, general
11household, institutional, and commercial waste, industrial
12lunchroom or office waste, landscape waste other than tree
13waste, railroad crossties, utility poles, or construction or
14demolition debris, other than untreated and unadulterated
15waste wood.
16    "Revenue bond" means any bond, note, or other evidence of
17indebtedness issued by the Authority, the principal and
18interest of which is payable solely from revenues or income
19derived from any project or activity of the Agency.
20    "Sequester" means permanent storage of carbon dioxide by
21injecting it into a saline aquifer, a depleted gas reservoir,
22or an oil reservoir, directly or through an enhanced oil
23recovery process that may involve intermediate storage,
24regardless of whether these activities are conducted by a clean
25coal facility, a clean coal SNG facility, a clean coal SNG
26brownfield facility, or a party with which a clean coal

 

 

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1facility, clean coal SNG facility, or clean coal SNG brownfield
2facility has contracted for such purposes.
3    "Sourcing agreement" means (i) in the case of an electric
4utility, an agreement between the owner of a clean coal
5facility and such electric utility, which agreement shall have
6terms and conditions meeting the requirements of paragraph (3)
7of subsection (d) of Section 1-75, (ii) in the case of an
8alternative retail electric supplier, an agreement between the
9owner of a clean coal facility and such alternative retail
10electric supplier, which agreement shall have terms and
11conditions meeting the requirements of Section 16-115(d)(5) of
12the Public Utilities Act, and (iii) in case of a gas utility,
13an agreement between the owner of a clean coal SNG brownfield
14facility and the gas utility, which agreement shall have the
15terms and conditions meeting the requirements of subsection
16(h-1) of Section 9-220 of the Public Utilities Act.
17    "Substitute natural gas" or "SNG" means a gas manufactured
18by gasification of hydrocarbon feedstock, which is
19substantially interchangeable in use and distribution with
20conventional natural gas.
21    "Total resource cost test" or "TRC test" means a standard
22that is met if, for an investment in energy efficiency or
23demand-response measures, the benefit-cost ratio is greater
24than one. The benefit-cost ratio is the ratio of the net
25present value of the total benefits of the program to the net
26present value of the total costs as calculated over the

 

 

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1lifetime of the measures. A total resource cost test compares
2the sum of avoided electric utility costs, representing the
3benefits that accrue to the system and the participant in the
4delivery of those efficiency measures, as well as other
5quantifiable societal benefits, including avoided natural gas
6utility costs, to the sum of all incremental costs of end-use
7measures that are implemented due to the program (including
8both utility and participant contributions), plus costs to
9administer, deliver, and evaluate each demand-side program, to
10quantify the net savings obtained by substituting the
11demand-side program for supply resources. In calculating
12avoided costs of power and energy that an electric utility
13would otherwise have had to acquire, reasonable estimates shall
14be included of financial costs likely to be imposed by future
15regulations and legislation on emissions of greenhouse gases.
16(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;
1796-784, eff. 8-28-09; 96-1000, eff. 7-2-10; 97-96, eff.
187-13-11; 97-239, eff. 8-2-11; 97-491, eff. 8-22-11; 97-616,
19eff. 10-26-11; 97-813, eff. 7-13-12.)
 
20    Section 15. The Illinois Procurement Code is amended by
21changing Sections 1-10 and 53-25 as follows:
 
22    (30 ILCS 500/1-10)
23    Sec. 1-10. Application.
24    (a) This Code applies only to procurements for which

 

 

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1contractors were first solicited on or after July 1, 1998. This
2Code shall not be construed to affect or impair any contract,
3or any provision of a contract, entered into based on a
4solicitation prior to the implementation date of this Code as
5described in Article 99, including but not limited to any
6covenant entered into with respect to any revenue bonds or
7similar instruments. All procurements for which contracts are
8solicited between the effective date of Articles 50 and 99 and
9July 1, 1998 shall be substantially in accordance with this
10Code and its intent.
11    (b) This Code shall apply regardless of the source of the
12funds with which the contracts are paid, including federal
13assistance moneys. This Code shall not apply to:
14        (1) Contracts between the State and its political
15    subdivisions or other governments, or between State
16    governmental bodies except as specifically provided in
17    this Code.
18        (2) Grants, except for the filing requirements of
19    Section 20-80.
20        (3) Purchase of care.
21        (4) Hiring of an individual as employee and not as an
22    independent contractor, whether pursuant to an employment
23    code or policy or by contract directly with that
24    individual.
25        (5) Collective bargaining contracts.
26        (6) Purchase of real estate, except that notice of this

 

 

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1    type of contract with a value of more than $25,000 must be
2    published in the Procurement Bulletin within 7 days after
3    the deed is recorded in the county of jurisdiction. The
4    notice shall identify the real estate purchased, the names
5    of all parties to the contract, the value of the contract,
6    and the effective date of the contract.
7        (7) Contracts necessary to prepare for anticipated
8    litigation, enforcement actions, or investigations,
9    provided that the chief legal counsel to the Governor shall
10    give his or her prior approval when the procuring agency is
11    one subject to the jurisdiction of the Governor, and
12    provided that the chief legal counsel of any other
13    procuring entity subject to this Code shall give his or her
14    prior approval when the procuring entity is not one subject
15    to the jurisdiction of the Governor.
16        (8) Contracts for services to Northern Illinois
17    University by a person, acting as an independent
18    contractor, who is qualified by education, experience, and
19    technical ability and is selected by negotiation for the
20    purpose of providing non-credit educational service
21    activities or products by means of specialized programs
22    offered by the university.
23        (9) Procurement expenditures by the Illinois
24    Conservation Foundation when only private funds are used.
25        (10) Procurement expenditures by the Illinois Health
26    Information Exchange Authority involving private funds

 

 

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1    from the Health Information Exchange Fund. "Private funds"
2    means gifts, donations, and private grants.
3        (11) Public-private agreements entered into according
4    to the procurement requirements of Section 20 of the
5    Public-Private Partnerships for Transportation Act and
6    design-build agreements entered into according to the
7    procurement requirements of Section 25 of the
8    Public-Private Partnerships for Transportation Act.
9        (12) Contracts for legal, financial, and other
10    professional and artistic services entered into on or
11    before December 31, 2018 by the Illinois Finance Authority
12    in which the State of Illinois is not obligated. Such
13    contracts shall be awarded through a competitive process
14    authorized by the Board of the Illinois Finance Authority
15    and are subject to Sections 5-30, 20-160, 50-13, 50-20,
16    50-35, and 50-37 of this Code, as well as the final
17    approval by the Board of the Illinois Finance Authority of
18    the terms of the contract.
19    Notwithstanding any other provision of law, contracts
20entered into under item (12) of this subsection (b) shall be
21published in the Procurement Bulletin within 14 days after
22contract execution. The chief procurement officer shall
23prescribe the form and content of the notice. The Illinois
24Finance Authority shall provide the chief procurement officer,
25on a monthly basis, in the form and content prescribed by the
26chief procurement officer, a report of contracts that are

 

 

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1related to the procurement of goods and services identified in
2item (12) of this subsection (b). At a minimum, this report
3shall include the name of the contractor, a description of the
4supply or service provided, the total amount of the contract,
5the term of the contract, and the exception to the Code
6utilized. A copy of each of these contracts shall be made
7available to the chief procurement officer immediately upon
8request. The chief procurement officer shall submit a report to
9the Governor and General Assembly no later than November 1 of
10each year that shall include, at a minimum, an annual summary
11of the monthly information reported to the chief procurement
12officer.
13    (c) This Code does not apply to the electric power
14procurement process provided for under Section 1-75 of the
15Illinois Power Agency Act and Section 16-111.5 of the Public
16Utilities Act.
17    (d) Except for Section 20-160 and Article 50 of this Code,
18and as expressly required by Section 9.1 of the Illinois
19Lottery Law, the provisions of this Code do not apply to the
20procurement process provided for under Section 9.1 of the
21Illinois Lottery Law.
22    (e) This Code does not apply to the process used by the
23Capital Development Board to retain a person or entity to
24assist the Capital Development Board with its duties related to
25the determination of costs of a clean coal SNG brownfield
26facility, as defined by Section 1-10 of the Illinois Power

 

 

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1Agency Act, as required in subsection (h-3) of Section 9-220 of
2the Public Utilities Act, including calculating the range of
3capital costs, the range of operating and maintenance costs, or
4the sequestration costs or monitoring the construction of clean
5coal SNG brownfield facility for the full duration of
6construction.
7    (f) This Code does not apply to the process used by the
8Illinois Power Agency to retain a mediator to mediate sourcing
9agreement disputes between gas utilities and the clean coal SNG
10brownfield facility, as defined in Section 1-10 of the Illinois
11Power Agency Act, as required under subsection (h-1) of Section
129-220 of the Public Utilities Act.
13    (g) This Code does not apply to the processes used by the
14Illinois Power Agency to retain a mediator to mediate contract
15disputes between gas utilities and the clean coal SNG facility
16and to retain an expert to assist in the review of contracts
17under subsection (h) of Section 9-220 of the Public Utilities
18Act. This Code does not apply to the process used by the
19Illinois Commerce Commission to retain an expert to assist in
20determining the actual incurred costs of the clean coal SNG
21facility and the reasonableness of those costs as required
22under subsection (h) of Section 9-220 of the Public Utilities
23Act.
24    (h) This Code does not apply to the process to procure or
25contracts entered into in accordance with Sections 11-5.2 and
2611-5.3 of the Illinois Public Aid Code.

 

 

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1    (i) (h) Each chief procurement officer may access records
2necessary to review whether a contract, purchase, or other
3expenditure is or is not subject to the provisions of this
4Code, unless such records would be subject to attorney-client
5privilege.
6(Source: P.A. 96-840, eff. 12-23-09; 96-1331, eff. 7-27-10;
797-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-502, eff. 8-23-11;
897-689, eff. 6-14-12; 97-813, eff. 7-13-12; 97-895, eff.
98-3-12; revised 8-23-12.)
 
10    (30 ILCS 500/53-25)
11    Sec. 53-25. Public institutions of higher education.
12    (a) Each public institution of higher education may enter
13into concessions, including the assignment, license, sale, or
14transfer of interests in or rights to discoveries, inventions,
15patents, or copyrightable works, for property, whether
16tangible or intangible, over which it has jurisdiction.
17Concessions shall be reduced to writing and shall be awarded at
18the discretion of the institution with jurisdiction over the
19property. The duration and terms of concessions and leases
20shall be at the discretion of the institution with jurisdiction
21over the property. Notice of the award of a concession shall be
22published in the higher education volume of the Illinois
23Procurement Bulletin.
24    (b) The duration and terms of concessions and leases for
25personal property shall be at the discretion of the institution

 

 

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1with jurisdiction over the property.
2    (c) Notwithstanding any other provision of law, if the
3Illinois Finance Authority issues bonds for the financing of
4buildings, structures, or facilities that are determined by the
5governing board of a public institution of higher education to
6be either required by or necessary for the use or benefit of
7that public institution of higher education, then the duration
8of any lease for real property entered into by that public
9institution of higher education, as lessee or lessor, in
10connection with the issuance of those bonds shall be at the
11discretion of that public institution of higher education.
12(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
 
13    Section 20. The Illinois Municipal Code is amended by
14changing Section 11-20-12 as follows:
 
15    (65 ILCS 5/11-20-12)  (from Ch. 24, par. 11-20-12)
16    Sec. 11-20-12. Removal of infected trees.
17    (a) The corporate authorities of each municipality may
18provide for the treatment or removal of elm trees infected with
19Dutch elm disease or ash trees infected with the emerald ash
20borer (Agrilus planipennis Fairmaire) from any parcel of
21private property within the municipality if the owners of that
22parcel, after reasonable notice, refuse or neglect to treat or
23remove the infected trees. The municipality may collect, from
24the owners of the parcel, the reasonable removal cost.

 

 

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1    (b) The municipality's removal cost under this Section is a
2lien upon the underlying parcel in accordance with Section
311-20-15.
4    (c) For the purpose of this Section, "removal cost" means
5the total cost of the removal of the infected trees.
6"Treatment" means the administration, by environmentally
7sensitive processes and methods, of products and materials
8proven by academic research to protect elm and ash trees from
9an invasive disease in order to prevent or reverse the damage
10and preserve the trees.
11    (d) In the case of an abandoned residential property as
12defined in Section 11-20-15.1, the municipality may elect to
13obtain a lien for the removal cost pursuant to Section
1411-20-15.1, in which case the provisions of Section 11-20-15.1
15shall be the exclusive remedy for the removal cost.
16    The provisions of this subsection (d), other than this
17sentence, are inoperative upon certification by the Secretary
18of the Illinois Department of Financial and Professional
19Regulation, after consultation with the United States
20Department of Housing and Urban Development, that the Mortgage
21Electronic Registration System program is effectively
22registering substantially all mortgaged residential properties
23located in the State of Illinois, is available for access by
24all municipalities located in the State of Illinois without
25charge to them, and such registration includes the telephone
26number for the mortgage servicer.

 

 

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1(Source: P.A. 95-183, eff. 8-14-07; 96-462, eff. 8-14-09;
296-856, eff. 3-1-10.)
 
3    Section 25. The Public Utilities Act is amended by changing
4Sections 8-103 and 8-104 as follows:
 
5    (220 ILCS 5/8-103)
6    Sec. 8-103. Energy efficiency and demand-response
7measures.
8    (a) It is the policy of the State that electric utilities
9are required to use cost-effective energy efficiency and
10demand-response measures to reduce delivery load. Requiring
11investment in cost-effective energy efficiency and
12demand-response measures will reduce direct and indirect costs
13to consumers by decreasing environmental impacts and by
14avoiding or delaying the need for new generation, transmission,
15and distribution infrastructure. It serves the public interest
16to allow electric utilities to recover costs for reasonably and
17prudently incurred expenses for energy efficiency and
18demand-response measures. As used in this Section,
19"cost-effective" means that the measures satisfy the total
20resource cost test. The low-income measures described in
21subsection (f)(4) of this Section shall not be required to meet
22the total resource cost test. For purposes of this Section, the
23terms "energy-efficiency", "demand-response", "electric
24utility", and "total resource cost test" shall have the

 

 

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1meanings set forth in the Illinois Power Agency Act. For
2purposes of this Section, the amount per kilowatthour means the
3total amount paid for electric service expressed on a per
4kilowatthour basis. For purposes of this Section, the total
5amount paid for electric service includes without limitation
6estimated amounts paid for supply, transmission, distribution,
7surcharges, and add-on-taxes.
8    (b) Electric utilities shall implement cost-effective
9energy efficiency measures to meet the following incremental
10annual energy savings goals:
11        (1) 0.2% of energy delivered in the year commencing
12    June 1, 2008;
13        (2) 0.4% of energy delivered in the year commencing
14    June 1, 2009;
15        (3) 0.6% of energy delivered in the year commencing
16    June 1, 2010;
17        (4) 0.8% of energy delivered in the year commencing
18    June 1, 2011;
19        (5) 1% of energy delivered in the year commencing June
20    1, 2012;
21        (6) 1.4% of energy delivered in the year commencing
22    June 1, 2013;
23        (7) 1.8% of energy delivered in the year commencing
24    June 1, 2014; and
25        (8) 2% of energy delivered in the year commencing June
26    1, 2015 and each year thereafter.

 

 

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1    Electric utilities may comply with this subsection (b) by
2meeting the annual incremental savings goal in the applicable
3year or by showing that the total cumulative annual savings
4within a 3-year planning period associated with measures
5implemented after May 31, 2014 was equal to the sum of each
6annual incremental savings requirement from May 31, 2014
7through the end of the applicable year.
8    (c) Electric utilities shall implement cost-effective
9demand-response measures to reduce peak demand by 0.1% over the
10prior year for eligible retail customers, as defined in Section
1116-111.5 of this Act, and for customers that elect hourly
12service from the utility pursuant to Section 16-107 of this
13Act, provided those customers have not been declared
14competitive. This requirement commences June 1, 2008 and
15continues for 10 years.
16    (d) Notwithstanding the requirements of subsections (b)
17and (c) of this Section, an electric utility shall reduce the
18amount of energy efficiency and demand-response measures
19implemented over a 3-year planning period in any single year by
20an amount necessary to limit the estimated average annual
21increase in the amounts paid by retail customers in connection
22with electric service due to the cost of those measures to:
23        (1) in 2008, no more than 0.5% of the amount paid per
24    kilowatthour by those customers during the year ending May
25    31, 2007;
26        (2) in 2009, the greater of an additional 0.5% of the

 

 

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1    amount paid per kilowatthour by those customers during the
2    year ending May 31, 2008 or 1% of the amount paid per
3    kilowatthour by those customers during the year ending May
4    31, 2007;
5        (3) in 2010, the greater of an additional 0.5% of the
6    amount paid per kilowatthour by those customers during the
7    year ending May 31, 2009 or 1.5% of the amount paid per
8    kilowatthour by those customers during the year ending May
9    31, 2007;
10        (4) in 2011, the greater of an additional 0.5% of the
11    amount paid per kilowatthour by those customers during the
12    year ending May 31, 2010 or 2% of the amount paid per
13    kilowatthour by those customers during the year ending May
14    31, 2007; and
15        (5) thereafter, the amount of energy efficiency and
16    demand-response measures implemented for any single year
17    shall be reduced by an amount necessary to limit the
18    estimated average net increase due to the cost of these
19    measures included in the amounts paid by eligible retail
20    customers in connection with electric service to no more
21    than the greater of 2.015% of the amount paid per
22    kilowatthour by those customers during the year ending May
23    31, 2007 or the incremental amount per kilowatthour paid
24    for these measures in 2011.
25    No later than June 30, 2011, the Commission shall review
26the limitation on the amount of energy efficiency and

 

 

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1demand-response measures implemented pursuant to this Section
2and report to the General Assembly its findings as to whether
3that limitation unduly constrains the procurement of energy
4efficiency and demand-response measures.
5    (e) Electric utilities shall be responsible for overseeing
6the design, development, and filing of energy efficiency and
7demand-response plans with the Commission. Electric utilities
8shall implement 100% of the demand-response measures in the
9plans. Electric utilities shall implement 75% of the energy
10efficiency measures approved by the Commission, and may, as
11part of that implementation, outsource various aspects of
12program development and implementation. The remaining 25% of
13those energy efficiency measures approved by the Commission
14shall be implemented by the Department of Commerce and Economic
15Opportunity, and must be designed in conjunction with the
16utility and the filing process. The Department may outsource
17development and implementation of energy efficiency measures.
18A minimum of 10% of the entire portfolio of cost-effective
19energy efficiency measures shall be procured from units of
20local government, municipal corporations, school districts,
21and community college districts. The Department shall
22coordinate the implementation of these measures.
23    The apportionment of the dollars to cover the costs to
24implement the Department's share of the portfolio of energy
25efficiency measures shall be made to the Department once the
26Department has executed rebate agreements, grants, or

 

 

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1contracts for energy efficiency measures and provided
2supporting documentation for those rebate agreements, grants,
3and contracts to the utility. The Department is authorized to
4adopt any rules necessary and prescribe procedures in order to
5ensure compliance by applicants in carrying out the purposes of
6rebate agreements for energy efficiency measures implemented
7by the Department made under this Section.
8    The details of the measures implemented by the Department
9shall be submitted by the Department to the Commission in
10connection with the utility's filing regarding the energy
11efficiency and demand-response measures that the utility
12implements.
13    A utility providing approved energy efficiency and
14demand-response measures in the State shall be permitted to
15recover costs of those measures through an automatic adjustment
16clause tariff filed with and approved by the Commission. The
17tariff shall be established outside the context of a general
18rate case. Each year the Commission shall initiate a review to
19reconcile any amounts collected with the actual costs and to
20determine the required adjustment to the annual tariff factor
21to match annual expenditures.
22    Each utility shall include, in its recovery of costs, the
23costs estimated for both the utility's and the Department's
24implementation of energy efficiency and demand-response
25measures. Costs collected by the utility for measures
26implemented by the Department shall be submitted to the

 

 

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1Department pursuant to Section 605-323 of the Civil
2Administrative Code of Illinois, shall be deposited into the
3Energy Efficiency Portfolio Standards Fund, and shall be used
4by the Department solely for the purpose of implementing these
5measures. A utility shall not be required to advance any moneys
6to the Department but only to forward such funds as it has
7collected. The Department shall report to the Commission on an
8annual basis regarding the costs actually incurred by the
9Department in the implementation of the measures. Any changes
10to the costs of energy efficiency measures as a result of plan
11modifications shall be appropriately reflected in amounts
12recovered by the utility and turned over to the Department.
13    The portfolio of measures, administered by both the
14utilities and the Department, shall, in combination, be
15designed to achieve the annual savings targets described in
16subsections (b) and (c) of this Section, as modified by
17subsection (d) of this Section.
18    The utility and the Department shall agree upon a
19reasonable portfolio of measures and determine the measurable
20corresponding percentage of the savings goals associated with
21measures implemented by the utility or Department.
22    No utility shall be assessed a penalty under subsection (f)
23of this Section for failure to make a timely filing if that
24failure is the result of a lack of agreement with the
25Department with respect to the allocation of responsibilities
26or related costs or target assignments. In that case, the

 

 

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1Department and the utility shall file their respective plans
2with the Commission and the Commission shall determine an
3appropriate division of measures and programs that meets the
4requirements of this Section.
5    If the Department is unable to meet incremental annual
6performance goals for the portion of the portfolio implemented
7by the Department, then the utility and the Department shall
8jointly submit a modified filing to the Commission explaining
9the performance shortfall and recommending an appropriate
10course going forward, including any program modifications that
11may be appropriate in light of the evaluations conducted under
12item (7) of subsection (f) of this Section. In this case, the
13utility obligation to collect the Department's costs and turn
14over those funds to the Department under this subsection (e)
15shall continue only if the Commission approves the
16modifications to the plan proposed by the Department.
17    (f) No later than November 15, 2007, each electric utility
18shall file an energy efficiency and demand-response plan with
19the Commission to meet the energy efficiency and
20demand-response standards for 2008 through 2010. No later than
21October 1, 2010, each electric utility shall file an energy
22efficiency and demand-response plan with the Commission to meet
23the energy efficiency and demand-response standards for 2011
24through 2013. Every 3 years thereafter, each electric utility
25shall file, no later than September 1, an energy efficiency and
26demand-response plan with the Commission. If a utility does not

 

 

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1file such a plan by September 1 of an applicable year, it shall
2face a penalty of $100,000 per day until the plan is filed.
3Each utility's plan shall set forth the utility's proposals to
4meet the utility's portion of the energy efficiency standards
5identified in subsection (b) and the demand-response standards
6identified in subsection (c) of this Section as modified by
7subsections (d) and (e), taking into account the unique
8circumstances of the utility's service territory. The
9Commission shall seek public comment on the utility's plan and
10shall issue an order approving or disapproving each plan within
115 months after its submission. If the Commission disapproves a
12plan, the Commission shall, within 30 days, describe in detail
13the reasons for the disapproval and describe a path by which
14the utility may file a revised draft of the plan to address the
15Commission's concerns satisfactorily. If the utility does not
16refile with the Commission within 60 days, the utility shall be
17subject to penalties at a rate of $100,000 per day until the
18plan is filed. This process shall continue, and penalties shall
19accrue, until the utility has successfully filed a portfolio of
20energy efficiency and demand-response measures. Penalties
21shall be deposited into the Energy Efficiency Trust Fund. In
22submitting proposed energy efficiency and demand-response
23plans and funding levels to meet the savings goals adopted by
24this Act the utility shall:
25        (1) Demonstrate that its proposed energy efficiency
26    and demand-response measures will achieve the requirements

 

 

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1    that are identified in subsections (b) and (c) of this
2    Section, as modified by subsections (d) and (e).
3        (2) Present specific proposals to implement new
4    building and appliance standards that have been placed into
5    effect.
6        (3) Present estimates of the total amount paid for
7    electric service expressed on a per kilowatthour basis
8    associated with the proposed portfolio of measures
9    designed to meet the requirements that are identified in
10    subsections (b) and (c) of this Section, as modified by
11    subsections (d) and (e).
12        (4) Coordinate with the Department to present a
13    portfolio of energy efficiency measures proportionate to
14    the share of total annual utility revenues in Illinois from
15    households at or below 150% of the poverty level. The
16    energy efficiency programs shall be targeted to households
17    with incomes at or below 80% of area median income.
18        (5) Demonstrate that its overall portfolio of energy
19    efficiency and demand-response measures, not including
20    programs covered by item (4) of this subsection (f), are
21    cost-effective using the total resource cost test and
22    represent a diverse cross-section of opportunities for
23    customers of all rate classes to participate in the
24    programs.
25        (6) Include a proposed cost-recovery tariff mechanism
26    to fund the proposed energy efficiency and demand-response

 

 

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1    measures and to ensure the recovery of the prudently and
2    reasonably incurred costs of Commission-approved programs.
3        (7) Provide for an annual independent evaluation of the
4    performance of the cost-effectiveness of the utility's
5    portfolio of measures and the Department's portfolio of
6    measures, as well as a full review of the 3-year results of
7    the broader net program impacts and, to the extent
8    practical, for adjustment of the measures on a
9    going-forward basis as a result of the evaluations. The
10    resources dedicated to evaluation shall not exceed 3% of
11    portfolio resources in any given year.
12    (g) No more than 3% of energy efficiency and
13demand-response program revenue may be allocated for
14demonstration of breakthrough equipment and devices.
15    (h) This Section does not apply to an electric utility that
16on December 31, 2005 provided electric service to fewer than
17100,000 customers in Illinois.
18    (i) If, after 2 years, an electric utility fails to meet
19the efficiency standard specified in subsection (b) of this
20Section, as modified by subsections (d) and (e), it shall make
21a contribution to the Low-Income Home Energy Assistance
22Program. The combined total liability for failure to meet the
23goal shall be $1,000,000, which shall be assessed as follows: a
24large electric utility shall pay $665,000, and a medium
25electric utility shall pay $335,000. If, after 3 years, an
26electric utility fails to meet the efficiency standard

 

 

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1specified in subsection (b) of this Section, as modified by
2subsections (d) and (e), it shall make a contribution to the
3Low-Income Home Energy Assistance Program. The combined total
4liability for failure to meet the goal shall be $1,000,000,
5which shall be assessed as follows: a large electric utility
6shall pay $665,000, and a medium electric utility shall pay
7$335,000. In addition, the responsibility for implementing the
8energy efficiency measures of the utility making the payment
9shall be transferred to the Illinois Power Agency if, after 3
10years, or in any subsequent 3-year period, the utility fails to
11meet the efficiency standard specified in subsection (b) of
12this Section, as modified by subsections (d) and (e). The
13Agency shall implement a competitive procurement program to
14procure resources necessary to meet the standards specified in
15this Section as modified by subsections (d) and (e), with costs
16for those resources to be recovered in the same manner as
17products purchased through the procurement plan as provided in
18Section 16-111.5. The Director shall implement this
19requirement in connection with the procurement plan as provided
20in Section 16-111.5.
21    For purposes of this Section, (i) a "large electric
22utility" is an electric utility that, on December 31, 2005,
23served more than 2,000,000 electric customers in Illinois; (ii)
24a "medium electric utility" is an electric utility that, on
25December 31, 2005, served 2,000,000 or fewer but more than
26100,000 electric customers in Illinois; and (iii) Illinois

 

 

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1electric utilities that are affiliated by virtue of a common
2parent company are considered a single electric utility.
3    (j) If, after 3 years, or any subsequent 3-year period, the
4Department fails to implement the Department's share of energy
5efficiency measures required by the standards in subsection
6(b), then the Illinois Power Agency may assume responsibility
7for and control of the Department's share of the required
8energy efficiency measures. The Agency shall implement a
9competitive procurement program to procure resources necessary
10to meet the standards specified in this Section, with the costs
11of these resources to be recovered in the same manner as
12provided for the Department in this Section.
13    (k) No electric utility shall be deemed to have failed to
14meet the energy efficiency standards to the extent any such
15failure is due to a failure of the Department or the Agency.
16(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;
1796-1000, eff. 7-2-10; 97-616, eff. 10-26-11; 97-841, eff.
187-20-12.)
 
19    (220 ILCS 5/8-104)
20    Sec. 8-104. Natural gas energy efficiency programs.
21    (a) It is the policy of the State that natural gas
22utilities and the Department of Commerce and Economic
23Opportunity are required to use cost-effective energy
24efficiency to reduce direct and indirect costs to consumers. It
25serves the public interest to allow natural gas utilities to

 

 

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1recover costs for reasonably and prudently incurred expenses
2for cost-effective energy efficiency measures.
3    (b) For purposes of this Section, "energy efficiency" means
4measures that reduce the amount of energy required to achieve a
5given end use. "Energy efficiency" also includes measures that
6reduce the total Btus of electricity and natural gas needed to
7meet the end use or uses. "Cost-effective" and "cost-effective"
8means that the measures satisfy the total resource cost test
9which, for purposes of this Section, means a standard that is
10met if, for an investment in energy efficiency, the
11benefit-cost ratio is greater than one. The benefit-cost ratio
12is the ratio of the net present value of the total benefits of
13the measures to the net present value of the total costs as
14calculated over the lifetime of the measures. The total
15resource cost test compares the sum of avoided natural gas
16utility costs, representing the benefits that accrue to the
17system and the participant in the delivery of those efficiency
18measures, as well as other quantifiable societal benefits,
19including avoided electric utility costs, to the sum of all
20incremental costs of end use measures (including both utility
21and participant contributions), plus costs to administer,
22deliver, and evaluate each demand-side measure, to quantify the
23net savings obtained by substituting demand-side measures for
24supply resources. In calculating avoided costs, reasonable
25estimates shall be included for financial costs likely to be
26imposed by future regulation of emissions of greenhouse gases.

 

 

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1The low-income programs described in item (4) of subsection (f)
2of this Section shall not be required to meet the total
3resource cost test.
4    (c) Natural gas utilities shall implement cost-effective
5energy efficiency measures to meet at least the following
6natural gas savings requirements, which shall be based upon the
7total amount of gas delivered to retail customers, other than
8the customers described in subsection (m) of this Section,
9during calendar year 2009 multiplied by the applicable
10percentage. Natural gas utilities may comply with this Section
11by meeting the annual incremental savings goal in the
12applicable year or by showing that total cumulative annual
13savings within a 3-year planning period associated with
14measures implemented after May 31, 2011 were equal to the sum
15of each annual incremental savings requirement from May 31,
162011 through the end of the applicable year:
17        (1) 0.2% by May 31, 2012;
18        (2) an additional 0.4% by May 31, 2013, increasing
19    total savings to .6%;
20        (3) an additional 0.6% by May 31, 2014, increasing
21    total savings to 1.2%;
22        (4) an additional 0.8% by May 31, 2015, increasing
23    total savings to 2.0%;
24        (5) an additional 1% by May 31, 2016, increasing total
25    savings to 3.0%;
26        (6) an additional 1.2% by May 31, 2017, increasing

 

 

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1    total savings to 4.2%;
2        (7) an additional 1.4% by May 31, 2018, increasing
3    total savings to 5.6%;
4        (8) an additional 1.5% by May 31, 2019, increasing
5    total savings to 7.1%; and
6        (9) an additional 1.5% in each 12-month period
7    thereafter.
8    (d) Notwithstanding the requirements of subsection (c) of
9this Section, a natural gas utility shall limit the amount of
10energy efficiency implemented in any 3-year reporting period
11established by subsection (f) of Section 8-104 of this Act, by
12an amount necessary to limit the estimated average increase in
13the amounts paid by retail customers in connection with natural
14gas service to no more than 2% in the applicable 3-year
15reporting period. The energy savings requirements in
16subsection (c) of this Section may be reduced by the Commission
17for the subject plan, if the utility demonstrates by
18substantial evidence that it is highly unlikely that the
19requirements could be achieved without exceeding the
20applicable spending limits in any 3-year reporting period. No
21later than September 1, 2013, the Commission shall review the
22limitation on the amount of energy efficiency measures
23implemented pursuant to this Section and report to the General
24Assembly, in the report required by subsection (k) of this
25Section, its findings as to whether that limitation unduly
26constrains the procurement of energy efficiency measures.

 

 

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1    (e) Natural gas utilities shall be responsible for
2overseeing the design, development, and filing of their
3efficiency plans with the Commission. The utility shall utilize
475% of the available funding associated with energy efficiency
5programs approved by the Commission, and may outsource various
6aspects of program development and implementation. The
7remaining 25% of available funding shall be used by the
8Department of Commerce and Economic Opportunity to implement
9energy efficiency measures that achieve no less than 20% of the
10requirements of subsection (c) of this Section. Such measures
11shall be designed in conjunction with the utility and approved
12by the Commission. The Department may outsource development and
13implementation of energy efficiency measures. A minimum of 10%
14of the entire portfolio of cost-effective energy efficiency
15measures shall be procured from local government, municipal
16corporations, school districts, and community college
17districts. Five percent of the entire portfolio of
18cost-effective energy efficiency measures may be granted to
19local government and municipal corporations for market
20transformation initiatives. The Department shall coordinate
21the implementation of these measures and shall integrate
22delivery of natural gas efficiency programs with electric
23efficiency programs delivered pursuant to Section 8-103 of this
24Act, unless the Department can show that integration is not
25feasible.
26    The apportionment of the dollars to cover the costs to

 

 

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1implement the Department's share of the portfolio of energy
2efficiency measures shall be made to the Department once the
3Department has executed rebate agreements, grants, or
4contracts for energy efficiency measures and provided
5supporting documentation for those rebate agreements, grants,
6and contracts to the utility. The Department is authorized to
7adopt any rules necessary and prescribe procedures in order to
8ensure compliance by applicants in carrying out the purposes of
9rebate agreements for energy efficiency measures implemented
10by the Department made under this Section.
11    The details of the measures implemented by the Department
12shall be submitted by the Department to the Commission in
13connection with the utility's filing regarding the energy
14efficiency measures that the utility implements.
15    A utility providing approved energy efficiency measures in
16this State shall be permitted to recover costs of those
17measures through an automatic adjustment clause tariff filed
18with and approved by the Commission. The tariff shall be
19established outside the context of a general rate case and
20shall be applicable to the utility's customers other than the
21customers described in subsection (m) of this Section. Each
22year the Commission shall initiate a review to reconcile any
23amounts collected with the actual costs and to determine the
24required adjustment to the annual tariff factor to match annual
25expenditures.
26    Each utility shall include, in its recovery of costs, the

 

 

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1costs estimated for both the utility's and the Department's
2implementation of energy efficiency measures. Costs collected
3by the utility for measures implemented by the Department shall
4be submitted to the Department pursuant to Section 605-323 of
5the Civil Administrative Code of Illinois, shall be deposited
6into the Energy Efficiency Portfolio Standards Fund, and shall
7be used by the Department solely for the purpose of
8implementing these measures. A utility shall not be required to
9advance any moneys to the Department but only to forward such
10funds as it has collected. The Department shall report to the
11Commission on an annual basis regarding the costs actually
12incurred by the Department in the implementation of the
13measures. Any changes to the costs of energy efficiency
14measures as a result of plan modifications shall be
15appropriately reflected in amounts recovered by the utility and
16turned over to the Department.
17    The portfolio of measures, administered by both the
18utilities and the Department, shall, in combination, be
19designed to achieve the annual energy savings requirements set
20forth in subsection (c) of this Section, as modified by
21subsection (d) of this Section.
22    The utility and the Department shall agree upon a
23reasonable portfolio of measures and determine the measurable
24corresponding percentage of the savings goals associated with
25measures implemented by the Department.
26    No utility shall be assessed a penalty under subsection (f)

 

 

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1of this Section for failure to make a timely filing if that
2failure is the result of a lack of agreement with the
3Department with respect to the allocation of responsibilities
4or related costs or target assignments. In that case, the
5Department and the utility shall file their respective plans
6with the Commission and the Commission shall determine an
7appropriate division of measures and programs that meets the
8requirements of this Section.
9    If the Department is unable to meet performance
10requirements for the portion of the portfolio implemented by
11the Department, then the utility and the Department shall
12jointly submit a modified filing to the Commission explaining
13the performance shortfall and recommending an appropriate
14course going forward, including any program modifications that
15may be appropriate in light of the evaluations conducted under
16item (8) of subsection (f) of this Section. In this case, the
17utility obligation to collect the Department's costs and turn
18over those funds to the Department under this subsection (e)
19shall continue only if the Commission approves the
20modifications to the plan proposed by the Department.
21    (f) No later than October 1, 2010, each gas utility shall
22file an energy efficiency plan with the Commission to meet the
23energy efficiency standards through May 31, 2014. Every 3 years
24thereafter, each utility shall file, no later than October 1,
25an energy efficiency plan with the Commission. If a utility
26does not file such a plan by October 1 of the applicable year,

 

 

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1then it shall face a penalty of $100,000 per day until the plan
2is filed. Each utility's plan shall set forth the utility's
3proposals to meet the utility's portion of the energy
4efficiency standards identified in subsection (c) of this
5Section, as modified by subsection (d) of this Section, taking
6into account the unique circumstances of the utility's service
7territory. The Commission shall seek public comment on the
8utility's plan and shall issue an order approving or
9disapproving each plan. If the Commission disapproves a plan,
10the Commission shall, within 30 days, describe in detail the
11reasons for the disapproval and describe a path by which the
12utility may file a revised draft of the plan to address the
13Commission's concerns satisfactorily. If the utility does not
14refile with the Commission within 60 days after the
15disapproval, the utility shall be subject to penalties at a
16rate of $100,000 per day until the plan is filed. This process
17shall continue, and penalties shall accrue, until the utility
18has successfully filed a portfolio of energy efficiency
19measures. Penalties shall be deposited into the Energy
20Efficiency Trust Fund and the cost of any such penalties may
21not be recovered from ratepayers. In submitting proposed energy
22efficiency plans and funding levels to meet the savings goals
23adopted by this Act the utility shall:
24        (1) Demonstrate that its proposed energy efficiency
25    measures will achieve the requirements that are identified
26    in subsection (c) of this Section, as modified by

 

 

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1    subsection (d) of this Section.
2        (2) Present specific proposals to implement new
3    building and appliance standards that have been placed into
4    effect.
5        (3) Present estimates of the total amount paid for gas
6    service expressed on a per therm basis associated with the
7    proposed portfolio of measures designed to meet the
8    requirements that are identified in subsection (c) of this
9    Section, as modified by subsection (d) of this Section.
10        (4) Coordinate with the Department to present a
11    portfolio of energy efficiency measures proportionate to
12    the share of total annual utility revenues in Illinois from
13    households at or below 150% of the poverty level. Such
14    programs shall be targeted to households with incomes at or
15    below 80% of area median income.
16        (5) Demonstrate that its overall portfolio of energy
17    efficiency measures, not including programs covered by
18    item (4) of this subsection (f), are cost-effective using
19    the total resource cost test and represent a diverse cross
20    section of opportunities for customers of all rate classes
21    to participate in the programs.
22        (6) Demonstrate that a gas utility affiliated with an
23    electric utility that is required to comply with Section
24    8-103 of this Act has integrated gas and electric
25    efficiency measures into a single program that reduces
26    program or participant costs and appropriately allocates

 

 

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1    costs to gas and electric ratepayers. The Department shall
2    integrate all gas and electric programs it delivers in any
3    such utilities' service territories, unless the Department
4    can show that integration is not feasible or appropriate.
5        (7) Include a proposed cost recovery tariff mechanism
6    to fund the proposed energy efficiency measures and to
7    ensure the recovery of the prudently and reasonably
8    incurred costs of Commission-approved programs.
9        (8) Provide for quarterly status reports tracking
10    implementation of and expenditures for the utility's
11    portfolio of measures and the Department's portfolio of
12    measures, an annual independent review, and a full
13    independent evaluation of the 3-year results of the
14    performance and the cost-effectiveness of the utility's
15    and Department's portfolios of measures and broader net
16    program impacts and, to the extent practical, for
17    adjustment of the measures on a going forward basis as a
18    result of the evaluations. The resources dedicated to
19    evaluation shall not exceed 3% of portfolio resources in
20    any given 3-year period.
21    (g) No more than 3% of expenditures on energy efficiency
22measures may be allocated for demonstration of breakthrough
23equipment and devices.
24    (h) Illinois natural gas utilities that are affiliated by
25virtue of a common parent company may, at the utilities'
26request, be considered a single natural gas utility for

 

 

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1purposes of complying with this Section.
2    (i) If, after 3 years, a gas utility fails to meet the
3efficiency standard specified in subsection (c) of this Section
4as modified by subsection (d), then it shall make a
5contribution to the Low-Income Home Energy Assistance Program.
6The total liability for failure to meet the goal shall be
7assessed as follows:
8        (1) a large gas utility shall pay $600,000;
9        (2) a medium gas utility shall pay $400,000; and
10        (3) a small gas utility shall pay $200,000.
11    For purposes of this Section, (i) a "large gas utility" is
12a gas utility that on December 31, 2008, served more than
131,500,000 gas customers in Illinois; (ii) a "medium gas
14utility" is a gas utility that on December 31, 2008, served
15fewer than 1,500,000, but more than 500,000 gas customers in
16Illinois; and (iii) a "small gas utility" is a gas utility that
17on December 31, 2008, served fewer than 500,000 and more than
18100,000 gas customers in Illinois. The costs of this
19contribution may not be recovered from ratepayers.
20    If a gas utility fails to meet the efficiency standard
21specified in subsection (c) of this Section, as modified by
22subsection (d) of this Section, in any 2 consecutive 3-year
23planning periods, then the responsibility for implementing the
24utility's energy efficiency measures shall be transferred to an
25independent program administrator selected by the Commission.
26Reasonable and prudent costs incurred by the independent

 

 

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1program administrator to meet the efficiency standard
2specified in subsection (c) of this Section, as modified by
3subsection (d) of this Section, may be recovered from the
4customers of the affected gas utilities, other than customers
5described in subsection (m) of this Section. The utility shall
6provide the independent program administrator with all
7information and assistance necessary to perform the program
8administrator's duties including but not limited to customer,
9account, and energy usage data, and shall allow the program
10administrator to include inserts in customer bills. The utility
11may recover reasonable costs associated with any such
12assistance.
13    (j) No utility shall be deemed to have failed to meet the
14energy efficiency standards to the extent any such failure is
15due to a failure of the Department.
16    (k) Not later than January 1, 2012, the Commission shall
17develop and solicit public comment on a plan to foster
18statewide coordination and consistency between statutorily
19mandated natural gas and electric energy efficiency programs to
20reduce program or participant costs or to improve program
21performance. Not later than September 1, 2013, the Commission
22shall issue a report to the General Assembly containing its
23findings and recommendations.
24    (l) This Section does not apply to a gas utility that on
25January 1, 2009, provided gas service to fewer than 100,000
26customers in Illinois.

 

 

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1    (m) Subsections (a) through (k) of this Section do not
2apply to customers of a natural gas utility that have a North
3American Industry Classification System code number that is
422111 or any such code number beginning with the digits 31, 32,
5or 33 and (i) annual usage in the aggregate of 4 million therms
6or more within the service territory of the affected gas
7utility or with aggregate usage of 8 million therms or more in
8this State and complying with the provisions of item (l) of
9this subsection (m); or (ii) using natural gas as feedstock and
10meeting the usage requirements described in item (i) of this
11subsection (m), to the extent such annual feedstock usage is
12greater than 60% of the customer's total annual usage of
13natural gas.
14        (1) Customers described in this subsection (m) of this
15    Section shall apply, on a form approved on or before
16    October 1, 2009 by the Department, to the Department to be
17    designated as a self-directing customer ("SDC") or as an
18    exempt customer using natural gas as a feedstock from which
19    other products are made, including, but not limited to,
20    feedstock for a hydrogen plant, on or before the 1st day of
21    February, 2010. Thereafter, application may be made not
22    less than 6 months before the filing date of the gas
23    utility energy efficiency plan described in subsection (f)
24    of this Section; however, a new customer that commences
25    taking service from a natural gas utility after February 1,
26    2010 may apply to become a SDC or exempt customer up to 30

 

 

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1    days after beginning service. Such application shall
2    contain the following:
3            (A) the customer's certification that, at the time
4        of its application, it qualifies to be a SDC or exempt
5        customer described in this subsection (m) of this
6        Section;
7            (B) in the case of a SDC, the customer's
8        certification that it has established or will
9        establish by the beginning of the utility's 3-year
10        planning period commencing subsequent to the
11        application, and will maintain for accounting
12        purposes, an energy efficiency reserve account and
13        that the customer will accrue funds in said account to
14        be held for the purpose of funding, in whole or in
15        part, energy efficiency measures of the customer's
16        choosing, which may include, but are not limited to,
17        projects involving combined heat and power systems
18        that use the same energy source both for the generation
19        of electrical or mechanical power and the production of
20        steam or another form of useful thermal energy or the
21        use of combustible gas produced from biomass, or both;
22            (C) in the case of a SDC, the customer's
23        certification that annual funding levels for the
24        energy efficiency reserve account will be equal to 2%
25        of the customer's cost of natural gas, composed of the
26        customer's commodity cost and the delivery service

 

 

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1        charges paid to the gas utility, or $150,000, whichever
2        is less;
3            (D) in the case of a SDC, the customer's
4        certification that the required reserve account
5        balance will be capped at 3 years' worth of accruals
6        and that the customer may, at its option, make further
7        deposits to the account to the extent such deposit
8        would increase the reserve account balance above the
9        designated cap level;
10            (E) in the case of a SDC, the customer's
11        certification that by October 1 of each year, beginning
12        no sooner than October 1, 2012, the customer will
13        report to the Department information, for the 12-month
14        period ending May 31 of the same year, on all deposits
15        and reductions, if any, to the reserve account during
16        the reporting year, and to the extent deposits to the
17        reserve account in any year are in an amount less than
18        $150,000, the basis for such reduced deposits; reserve
19        account balances by month; a description of energy
20        efficiency measures undertaken by the customer and
21        paid for in whole or in part with funds from the
22        reserve account; an estimate of the energy saved, or to
23        be saved, by the measure; and that the report shall
24        include a verification by an officer or plant manager
25        of the customer or by a registered professional
26        engineer or certified energy efficiency trade

 

 

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1        professional that the funds withdrawn from the reserve
2        account were used for the energy efficiency measures;
3            (F) in the case of an exempt customer, the
4        customer's certification of the level of gas usage as
5        feedstock in the customer's operation in a typical year
6        and that it will provide information establishing this
7        level, upon request of the Department;
8            (G) in the case of either an exempt customer or a
9        SDC, the customer's certification that it has provided
10        the gas utility or utilities serving the customer with
11        a copy of the application as filed with the Department;
12            (H) in the case of either an exempt customer or a
13        SDC, certification of the natural gas utility or
14        utilities serving the customer in Illinois including
15        the natural gas utility accounts that are the subject
16        of the application; and
17            (I) in the case of either an exempt customer or a
18        SDC, a verification signed by a plant manager or an
19        authorized corporate officer attesting to the
20        truthfulness and accuracy of the information contained
21        in the application.
22        (2) The Department shall review the application to
23    determine that it contains the information described in
24    provisions (A) through (I) of item (1) of this subsection
25    (m), as applicable. The review shall be completed within 30
26    days after the date the application is filed with the

 

 

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1    Department. Absent a determination by the Department
2    within the 30-day period, the applicant shall be considered
3    to be a SDC or exempt customer, as applicable, for all
4    subsequent 3-year planning periods, as of the date of
5    filing the application described in this subsection (m). If
6    the Department determines that the application does not
7    contain the applicable information described in provisions
8    (A) through (I) of item (1) of this subsection (m), it
9    shall notify the customer, in writing, of its determination
10    that the application does not contain the required
11    information and identify the information that is missing,
12    and the customer shall provide the missing information
13    within 15 working days after the date of receipt of the
14    Department's notification.
15        (3) The Department shall have the right to audit the
16    information provided in the customer's application and
17    annual reports to ensure continued compliance with the
18    requirements of this subsection. Based on the audit, if the
19    Department determines the customer is no longer in
20    compliance with the requirements of items (A) through (I)
21    of item (1) of this subsection (m), as applicable, the
22    Department shall notify the customer in writing of the
23    noncompliance. The customer shall have 30 days to establish
24    its compliance, and failing to do so, may have its status
25    as a SDC or exempt customer revoked by the Department. The
26    Department shall treat all information provided by any

 

 

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1    customer seeking SDC status or exemption from the
2    provisions of this Section as strictly confidential.
3        (4) Upon request, or on its own motion, the Commission
4    may open an investigation, no more than once every 3 years
5    and not before October 1, 2014, to evaluate the
6    effectiveness of the self-directing program described in
7    this subsection (m).
8    (n) The applicability of this Section to customers
9described in subsection (m) of this Section is conditioned on
10the existence of the SDC program. In no event will any
11provision of this Section apply to such customers after January
121, 2020.
13(Source: P.A. 96-33, eff. 7-10-09; 97-813, eff. 7-13-12;
1497-841, eff. 7-20-12.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.