Rep. Kelly Burke

Filed: 5/15/2013

 

 


 

 


 
09800SB1603ham001LRB098 08881 HLH 45847 a

1
AMENDMENT TO SENATE BILL 1603

2    AMENDMENT NO. ______. Amend Senate Bill 1603 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Finance Authority Act is amended
5by changing 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

 

 

09800SB1603ham001- 2 -LRB098 08881 HLH 45847 a

1institution project, municipal bond program project,
2agricultural facility or agribusiness, and "project" may
3include any combination of one or more of the foregoing
4undertaken jointly by any person with one or more other
5persons.
6    (c) The term "public purpose project" means any project or
7facility including without limitation land, buildings,
8structures, machinery, equipment and all other real and
9personal property, which is authorized or required by law to be
10acquired, constructed, improved, rehabilitated, reconstructed,
11replaced or maintained by any unit of government or any other
12lawful public purpose which is authorized or required by law to
13be undertaken by any unit of government.
14    (d) The term "industrial project" means the acquisition,
15construction, refurbishment, creation, development or
16redevelopment of any facility, equipment, machinery, real
17property or personal property for use by any instrumentality of
18the State or its political subdivisions, for use by any person
19or institution, public or private, for profit or not for
20profit, or for use in any trade or business including, but not
21limited to, any industrial, manufacturing or commercial
22enterprise that is located within or outside the State,
23provided that, with respect to a project involving property
24located outside the State, the property must be owned,
25operated, leased or managed by an entity located within the
26State or an entity affiliated with an entity located within the

 

 

09800SB1603ham001- 3 -LRB098 08881 HLH 45847 a

1State, and which is (1) a capital project including but not
2limited to: (i) land and any rights therein, one or more
3buildings, structures or other improvements, machinery and
4equipment, whether now existing or hereafter acquired, and
5whether or not located on the same site or sites; (ii) all
6appurtenances and facilities incidental to the foregoing,
7including, but not limited to utilities, access roads, railroad
8sidings, track, docking and similar facilities, parking
9facilities, dockage, wharfage, railroad roadbed, track,
10trestle, depot, terminal, switching and signaling or related
11equipment, site preparation and landscaping; and (iii) all
12non-capital costs and expenses relating thereto or (2) any
13addition to, renovation, rehabilitation or improvement of a
14capital project or (3) any activity or undertaking within or
15outside the State, provided that, with respect to a project
16involving property located outside the State, the property must
17be owned, operated, leased or managed by an entity located
18within the State or an entity affiliated with an entity located
19within the State, which the Authority determines will aid,
20assist or encourage economic growth, development or
21redevelopment within the State or any area thereof, will
22promote the expansion, retention or diversification of
23employment opportunities within the State or any area thereof
24or will aid in stabilizing or developing any industry or
25economic sector of the State economy. The term "industrial
26project" also means the production of motion pictures.

 

 

09800SB1603ham001- 4 -LRB098 08881 HLH 45847 a

1    (e) The term "bond" or "bonds" shall include bonds, notes
2(including bond, grant or revenue anticipation notes),
3certificates and/or other evidences of indebtedness
4representing an obligation to pay money, including refunding
5bonds.
6    (f) The terms "lease agreement" and "loan agreement" shall
7mean: (i) an agreement whereby a project acquired by the
8Authority by purchase, gift or lease is leased to any person,
9corporation or unit of local government which will use or cause
10the project to be used as a project as heretofore defined upon
11terms providing for lease rental payments at least sufficient
12to pay when due all principal of, interest and premium, if any,
13on any bonds of the Authority issued with respect to such
14project, providing for the maintenance, insuring and operation
15of the project on terms satisfactory to the Authority,
16providing for disposition of the project upon termination of
17the lease term, including purchase options or abandonment of
18the premises, and such other terms as may be deemed desirable
19by the Authority, or (ii) any agreement pursuant to which the
20Authority agrees to loan the proceeds of its bonds issued with
21respect to a project or other funds of the Authority to any
22person which will use or cause the project to be used as a
23project as heretofore defined upon terms providing for loan
24repayment installments at least sufficient to pay when due all
25principal of, interest and premium, if any, on any bonds of the
26Authority, if any, issued with respect to the project, and

 

 

09800SB1603ham001- 5 -LRB098 08881 HLH 45847 a

1providing for maintenance, insurance and other matters as may
2be deemed desirable by the Authority.
3    (g) The term "financial aid" means the expenditure of
4Authority funds or funds provided by the Authority through the
5issuance of its bonds, notes or other evidences of indebtedness
6or from other sources for the development, construction,
7acquisition or improvement of a project.
8    (h) The term "person" means an individual, corporation,
9unit of government, business trust, estate, trust, partnership
10or association, 2 or more persons having a joint or common
11interest, or any other legal entity.
12    (i) The term "unit of government" means the federal
13government, the State or unit of local government, a school
14district, or any agency or instrumentality, office, officer,
15department, division, bureau, commission, college or
16university thereof.
17    (j) The term "health facility" means: (a) any public or
18private institution, place, building, or agency required to be
19licensed under the Hospital Licensing Act; (b) any public or
20private institution, place, building, or agency required to be
21licensed under the Nursing Home Care Act, the Specialized
22Mental Health Rehabilitation Act, or the ID/DD Community Care
23Act; (c) any public or licensed private hospital as defined in
24the Mental Health and Developmental Disabilities Code; (d) any
25such facility exempted from such licensure when the Director of
26Public Health attests that such exempted facility meets the

 

 

09800SB1603ham001- 6 -LRB098 08881 HLH 45847 a

1statutory definition of a facility subject to licensure; (e)
2any other public or private health service institution, place,
3building, or agency which the Director of Public Health attests
4is subject to certification by the Secretary, U.S. Department
5of Health and Human Services under the Social Security Act, as
6now or hereafter amended, or which the Director of Public
7Health attests is subject to standard-setting by a recognized
8public or voluntary accrediting or standard-setting agency;
9(f) any public or private institution, place, building or
10agency engaged in providing one or more supporting services to
11a health facility; (g) any public or private institution,
12place, building or agency engaged in providing training in the
13healing arts, including but not limited to schools of medicine,
14dentistry, osteopathy, optometry, podiatry, pharmacy or
15nursing, schools for the training of x-ray, laboratory or other
16health care technicians and schools for the training of
17para-professionals in the health care field; (h) any public or
18private congregate, life or extended care or elderly housing
19facility or any public or private home for the aged or infirm,
20including, without limitation, any Facility as defined in the
21Life Care Facilities Act; (i) any public or private mental,
22emotional or physical rehabilitation facility or any public or
23private educational, counseling, or rehabilitation facility or
24home, for those persons with a developmental disability, those
25who are physically ill or disabled, the emotionally disturbed,
26those persons with a mental illness or persons with learning or

 

 

09800SB1603ham001- 7 -LRB098 08881 HLH 45847 a

1similar disabilities or problems; (j) any public or private
2alcohol, drug or substance abuse diagnosis, counseling
3treatment or rehabilitation facility, (k) any public or private
4institution, place, building or agency licensed by the
5Department of Children and Family Services or which is not so
6licensed but which the Director of Children and Family Services
7attests provides child care, child welfare or other services of
8the type provided by facilities subject to such licensure; (l)
9any public or private adoption agency or facility; and (m) any
10public or private blood bank or blood center. "Health facility"
11also means a public or private structure or structures suitable
12primarily for use as a laboratory, laundry, nurses or interns
13residence or other housing or hotel facility used in whole or
14in part for staff, employees or students and their families,
15patients or relatives of patients admitted for treatment or
16care in a health facility, or persons conducting business with
17a health facility, physician's facility, surgicenter,
18administration building, research facility, maintenance,
19storage or utility facility and all structures or facilities
20related to any of the foregoing or required or useful for the
21operation of a health facility, including parking or other
22facilities or other supporting service structures required or
23useful for the orderly conduct of such health facility. "Health
24facility" also means, with respect to a project located outside
25the State, any public or private institution, place, building,
26or agency which provides services similar to those described

 

 

09800SB1603ham001- 8 -LRB098 08881 HLH 45847 a

1above, provided that such project is owned, operated, leased or
2managed by a participating health institution located within
3the State, or a participating health institution affiliated
4with an entity located within the State.
5    (k) The term "participating health institution" means (i) a
6private corporation or association or (ii) a public entity of
7this State, in either case authorized by the laws of this State
8or the applicable state to provide or operate a health facility
9as defined in this Act and which, pursuant to the provisions of
10this Act, undertakes the financing, construction or
11acquisition of a project or undertakes the refunding or
12refinancing of obligations, loans, indebtedness or advances as
13provided in this Act.
14    (l) The term "health facility project", means a specific
15health facility work or improvement to be financed or
16refinanced (including without limitation through reimbursement
17of prior expenditures), acquired, constructed, enlarged,
18remodeled, renovated, improved, furnished, or equipped, with
19funds provided in whole or in part hereunder, any accounts
20receivable, working capital, liability or insurance cost or
21operating expense financing or refinancing program of a health
22facility with or involving funds provided in whole or in part
23hereunder, or any combination thereof.
24    (m) The term "bond resolution" means the resolution or
25resolutions authorizing the issuance of, or providing terms and
26conditions related to, bonds issued under this Act and

 

 

09800SB1603ham001- 9 -LRB098 08881 HLH 45847 a

1includes, where appropriate, any trust agreement, trust
2indenture, indenture of mortgage or deed of trust providing
3terms and conditions for such bonds.
4    (n) The term "property" means any real, personal or mixed
5property, whether tangible or intangible, or any interest
6therein, including, without limitation, any real estate,
7leasehold interests, appurtenances, buildings, easements,
8equipment, furnishings, furniture, improvements, machinery,
9rights of way, structures, accounts, contract rights or any
10interest therein.
11    (o) The term "revenues" means, with respect to any project,
12the rents, fees, charges, interest, principal repayments,
13collections and other income or profit derived therefrom.
14    (p) The term "higher education project" means, in the case
15of a private institution of higher education, an educational
16facility to be acquired, constructed, enlarged, remodeled,
17renovated, improved, furnished, or equipped, or any
18combination thereof.
19    (q) The term "cultural institution project" means, in the
20case of a cultural institution, a cultural facility to be
21acquired, constructed, enlarged, remodeled, renovated,
22improved, furnished, or equipped, or any combination thereof.
23    (r) The term "educational facility" means any property
24located within the State, or any property located outside the
25State, provided that, if the property is located outside the
26State, it must be owned, operated, leased or managed by an

 

 

09800SB1603ham001- 10 -LRB098 08881 HLH 45847 a

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

 

 

09800SB1603ham001- 11 -LRB098 08881 HLH 45847 a

1provided that, if the property is located outside the State, it
2must be owned, operated, leased or managed by an entity located
3within the State or an entity affiliated with an entity located
4within the State, in each case constructed or acquired before
5or after the effective date of this Act, which is or will be,
6in whole or in part, suitable for the particular purposes or
7needs of a cultural institution, including, without
8limitation, any such property suitable for use as or in
9connection with any one or more of the following: an
10administrative facility, aquarium, assembly hall, auditorium,
11botanical garden, exhibition hall, gallery, greenhouse,
12library, museum, scientific laboratory, theater or zoological
13facility, and shall also include, without limitation, books,
14works of art or music, animal, plant or aquatic life or other
15items for display, exhibition or performance. The term
16"cultural facility" includes buildings on the National
17Register of Historic Places which are owned or operated by
18nonprofit entities.
19    (t) "Private institution of higher education" means a
20not-for-profit educational institution which is not owned by
21the State or any political subdivision, agency,
22instrumentality, district or municipality thereof, which is
23authorized by law to provide a program of education beyond the
24high school level and which:
25        (1) Admits as regular students only individuals having
26    a certificate of graduation from a high school, or the

 

 

09800SB1603ham001- 12 -LRB098 08881 HLH 45847 a

1    recognized equivalent of such a certificate;
2        (2) Provides an educational program for which it awards
3    a bachelor's degree, or provides an educational program,
4    admission into which is conditioned upon the prior
5    attainment of a bachelor's degree or its equivalent, for
6    which it awards a postgraduate degree, or provides not less
7    than a 2-year program which is acceptable for full credit
8    toward such a degree, or offers a 2-year program in
9    engineering, mathematics, or the physical or biological
10    sciences which is designed to prepare the student to work
11    as a technician and at a semiprofessional level in
12    engineering, scientific, or other technological fields
13    which require the understanding and application of basic
14    engineering, scientific, or mathematical principles or
15    knowledge;
16        (3) Is accredited by a nationally recognized
17    accrediting agency or association or, if not so accredited,
18    is an institution whose credits are accepted, on transfer,
19    by not less than 3 institutions which are so accredited,
20    for credit on the same basis as if transferred from an
21    institution so accredited, and holds an unrevoked
22    certificate of approval under the Private College Act from
23    the Board of Higher Education, or is qualified as a "degree
24    granting institution" under the Academic Degree Act; and
25        (4) Does not discriminate in the admission of students
26    on the basis of race or color. "Private institution of

 

 

09800SB1603ham001- 13 -LRB098 08881 HLH 45847 a

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

 

 

09800SB1603ham001- 14 -LRB098 08881 HLH 45847 a

1control with, such lender, and any person, firm or corporation
2controlling such lender.
3    (x) The term "agricultural facility" means land, any
4building or other improvement thereon or thereto, and any
5personal properties deemed necessary or suitable for use,
6whether or not now in existence, in farming, ranching, the
7production of agricultural commodities (including, without
8limitation, the products of aquaculture, hydroponics and
9silviculture) or the treating, processing or storing of such
10agricultural commodities when such activities are customarily
11engaged in by farmers as a part of farming and which land,
12building, improvement or personal property is located within
13the State, or is located outside the State, provided, that if
14such property is located outside the State, it must be owned,
15operated, leased, or managed by an entity located within the
16State or an entity affiliated with an entity located within the
17State.
18    (y) The term "lender" with respect to financing of an
19agricultural facility or an agribusiness, means any federal or
20State chartered bank, Federal Land Bank, Production Credit
21Association, Bank for Cooperatives, federal or State chartered
22savings and loan association or building and loan association,
23Small Business Investment Company or any other institution
24qualified within this State to originate and service loans,
25including, but without limitation to, insurance companies,
26credit unions and mortgage loan companies. "Lender" also means

 

 

09800SB1603ham001- 15 -LRB098 08881 HLH 45847 a

1a wholly owned subsidiary of a manufacturer, seller or
2distributor of goods or services that makes loans to businesses
3or individuals, commonly known as a "captive finance company".
4    (z) The term "agribusiness" means any sole proprietorship,
5limited partnership, co-partnership, joint venture,
6corporation or cooperative which operates or will operate a
7facility located within the State or outside the State,
8provided, that if any facility is located outside the State, it
9must be owned, operated, leased, or managed by an entity
10located within the State or an entity affiliated with an entity
11located within the State, of Illinois that is related to the
12processing of agricultural commodities (including, without
13limitation, the products of aquaculture, hydroponics and
14silviculture) or the manufacturing, production or construction
15of agricultural buildings, structures, equipment, implements,
16and supplies, or any other facilities or processes used in
17agricultural production. Agribusiness includes but is not
18limited to the following:
19        (1) grain handling and processing, including grain
20    storage, drying, treatment, conditioning, mailing and
21    packaging;
22        (2) seed and feed grain development and processing;
23        (3) fruit and vegetable processing, including
24    preparation, canning and packaging;
25        (4) processing of livestock and livestock products,
26    dairy products, poultry and poultry products, fish or

 

 

09800SB1603ham001- 16 -LRB098 08881 HLH 45847 a

1    apiarian products, including slaughter, shearing,
2    collecting, preparation, canning and packaging;
3        (5) fertilizer and agricultural chemical
4    manufacturing, processing, application and supplying;
5        (6) farm machinery, equipment and implement
6    manufacturing and supplying;
7        (7) manufacturing and supplying of agricultural
8    commodity processing machinery and equipment, including
9    machinery and equipment used in slaughter, treatment,
10    handling, collecting, preparation, canning or packaging of
11    agricultural commodities;
12        (8) farm building and farm structure manufacturing,
13    construction and supplying;
14        (9) construction, manufacturing, implementation,
15    supplying or servicing of irrigation, drainage and soil and
16    water conservation devices or equipment;
17        (10) fuel processing and development facilities that
18    produce fuel from agricultural commodities or byproducts;
19        (11) facilities and equipment for processing and
20    packaging agricultural commodities specifically for
21    export;
22        (12) facilities and equipment for forestry product
23    processing and supplying, including sawmilling operations,
24    wood chip operations, timber harvesting operations, and
25    manufacturing of prefabricated buildings, paper, furniture
26    or other goods from forestry products;

 

 

09800SB1603ham001- 17 -LRB098 08881 HLH 45847 a

1        (13) facilities and equipment for research and
2    development of products, processes and equipment for the
3    production, processing, preparation or packaging of
4    agricultural commodities and byproducts.
5    (aa) The term "asset" with respect to financing of any
6agricultural facility or any agribusiness, means, but is not
7limited to the following: cash crops or feed on hand; livestock
8held for sale; breeding stock; marketable bonds and securities;
9securities not readily marketable; accounts receivable; notes
10receivable; cash invested in growing crops; net cash value of
11life insurance; machinery and equipment; cars and trucks; farm
12and other real estate including life estates and personal
13residence; value of beneficial interests in trusts; government
14payments or grants; and any other assets.
15    (bb) The term "liability" with respect to financing of any
16agricultural facility or any agribusiness shall include, but
17not be limited to the following: accounts payable; notes or
18other indebtedness owed to any source; taxes; rent; amounts
19owed on real estate contracts or real estate mortgages;
20judgments; accrued interest payable; and any other liability.
21    (cc) The term "Predecessor Authorities" means those
22authorities as described in Section 845-75.
23    (dd) The term "housing project" means a specific work or
24improvement located within the State or outside the State and
25undertaken to provide residential dwelling accommodations,
26including the acquisition, construction or rehabilitation of

 

 

09800SB1603ham001- 18 -LRB098 08881 HLH 45847 a

1lands, buildings and community facilities and in connection
2therewith to provide nonhousing facilities which are part of
3the housing project, including land, buildings, improvements,
4equipment and all ancillary facilities for use for offices,
5stores, retirement homes, hotels, financial institutions,
6service, health care, education, recreation or research
7establishments, or any other commercial purpose which are or
8are to be related to a housing development, provided that any
9work or improvement located outside the State is owned,
10operated, leased or managed by an entity located within the
11State, or any entity affiliated with an entity located within
12the State.
13    (ee) The term "conservation project" means any project
14including the acquisition, construction, rehabilitation,
15maintenance, operation, or upgrade that is intended to create
16or expand open space or to reduce energy usage through
17efficiency measures. For the purpose of this definition, "open
18space" has the definition set forth under Section 10 of the
19Illinois Open Land Trust Act.
20    (ff) The term "significant presence" means the existence
21within the State of the national or regional headquarters of an
22entity or group or such other facility of an entity or group of
23entities where a significant amount of the business functions
24are performed for such entity or group of entities.
25    (gg) The term "municipal bond issuer" means the State or
26any other state or commonwealth of the United States, or any

 

 

09800SB1603ham001- 19 -LRB098 08881 HLH 45847 a

1unit of local government, school district, agency or
2instrumentality, office, department, division, bureau,
3commission, college or university thereof located in the State
4or any other state or commonwealth of the United States.
5    (hh) The term "municipal bond program project" means a
6program for the funding of the purchase of bonds, notes or
7other obligations issued by or on behalf of a municipal bond
8issuer.
9(Source: P.A. 96-339, eff. 7-1-10; 96-1021, eff. 7-12-10;
1097-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813, eff.
117-13-12.)
 
12    (20 ILCS 3501/801-55)
13    Sec. 801-55. Required findings for projects located
14outside the State. The Authority may approve an application to
15finance or refinance a project located outside of the State
16other than a municipal bond program project only after it has
17made the following findings with respect to such financing or
18refinancing, all of which shall be deemed conclusive:
19        (a) the entity financing or refinancing a project
20    located outside the State, or an affiliate thereof, is also
21    engaged in the financing or refinancing of a project
22    located within the State or, alternately, the entity
23    seeking the financing or refinancing, or an affiliate
24    thereof, maintains a significant presence within the
25    State;

 

 

09800SB1603ham001- 20 -LRB098 08881 HLH 45847 a

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

 

 

09800SB1603ham001- 21 -LRB098 08881 HLH 45847 a

1    division, bureau, commission, college or university
2    thereof; and
3        (2) financing or refinancing the municipal bond
4    program project would promote the economy of the State for
5    the benefit of the health, welfare, safety, trade,
6    commerce, industry, and economy of the people of the State
7    by reducing the cost of borrowing to the State or such unit
8    of local government, school district, agency or
9    instrumentality, office, department, division, bureau,
10    commission, college or university thereof.
11    The Authority shall not provide financing or refinancing
12for any project, or portion thereof, located outside the
13boundaries 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 that 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(Source: P.A. 96-1021, eff. 7-12-10.)
 
23    (20 ILCS 3501/825-12)
24    Sec. 825-12. Conservation projects.
25    (a) The Authority may develop a program to provide

 

 

09800SB1603ham001- 22 -LRB098 08881 HLH 45847 a

1low-interest loans and other financing to individuals,
2business entities, private organizations, and units of local
3government for conservation projects within the United States,
4provided that, if the conservation project is located outside
5of the State, it is owned, operated, leased or managed by an
6entity located within the State or any entity affiliated with
7an entity located within the State in the State of Illinois.
8    (b) Projects under this Section may include, without
9limitation, the acquisition of land for open-space projects,
10preservation or recreation measures for open spaces, and energy
11conservation or efficiency projects that are intended to reduce
12energy usage and costs.
13    (c) The Authority, in cooperation with the Department of
14Natural Resources and the Department of Commerce and Economic
15Opportunity, may adopt any rules necessary for the
16administration of this Section. The Authority must include any
17information concerning the program under this Section on its
18Internet website.
19(Source: P.A. 95-697, eff. 11-6-07.)
 
20    (20 ILCS 3501/825-65)
21    Sec. 825-65. Clean Coal, Coal, Energy Efficiency, and
22Renewable Energy Project Financing.
23    (a) Findings and declaration of policy.
24        (i) It is hereby found and declared that Illinois has
25    abundant coal resources and, in some areas of Illinois and

 

 

09800SB1603ham001- 23 -LRB098 08881 HLH 45847 a

1    some areas outside of the State, the demand for power
2    exceeds the generating capacity. Incentives to encourage
3    the construction of coal-fueled electric generating plants
4    in Illinois to ensure power generating capacity into the
5    future and to advance clean coal technology and the use of
6    Illinois coal are in the best interests of all of the
7    citizens of Illinois.
8        (ii) It is further found and declared that Illinois has
9    abundant potential and resources to develop renewable
10    energy resource projects and that there are many
11    opportunities to invest in cost-effective energy
12    efficiency projects throughout the State. The development
13    of those projects will create jobs and investment as well
14    as decrease environmental impacts and promote energy
15    independence in Illinois. Accordingly, the development of
16    those projects is in the best interests of all of the
17    citizens of Illinois.
18        (iii) The Authority is authorized to issue bonds to
19    help finance Clean Coal, Coal, Energy Efficiency, and
20    Renewable Energy projects pursuant to this Section.
21    (b) Definitions.
22        (i) "Clean Coal Project" means (A) "clean coal
23    facility", as defined in Section 1-10 of the Illinois Power
24    Agency Act; (B) "clean coal SNG facility", as defined in
25    Section 1-10 of the Illinois Power Agency Act; (C)
26    transmission lines and associated equipment that transfer

 

 

09800SB1603ham001- 24 -LRB098 08881 HLH 45847 a

1    electricity from points of supply to points of delivery for
2    projects described in this subsection (b); (D) pipelines or
3    other methods to transfer carbon dioxide from the point of
4    production to the point of storage or sequestration for
5    projects described in this subsection (b); or (E) projects
6    to provide carbon abatement technology for existing
7    generating facilities.
8        (ii) "Coal Project" means new electric generating
9    facilities or new gasification facilities, as defined in
10    Section 605-332 of the Department of Commerce and Economic
11    Opportunity Law of the Civil Administrative Code of
12    Illinois, which may include mine-mouth power plants,
13    projects that employ the use of clean coal technology,
14    projects to provide scrubber technology for existing
15    energy generating plants, or projects to provide electric
16    transmission facilities or new gasification facilities.
17        (iii) "Energy Efficiency Project" means measures that
18    reduce the amount of electricity or natural gas required to
19    achieve a given end use, consistent with Section 1-10 of
20    the Illinois Power Agency Act. "Energy Efficiency Project"
21    also includes measures that reduce the total Btus of
22    electricity and natural gas needed to meet the end use or
23    uses consistent with Section 1-10 of the Illinois Power
24    Agency Act.
25        (iv) "Renewable Energy Project" means (A) a project
26    that uses renewable energy resources, as defined in Section

 

 

09800SB1603ham001- 25 -LRB098 08881 HLH 45847 a

1    1-10 of the Illinois Power Agency Act; (B) a project that
2    uses environmentally preferable technologies and practices
3    that result in improvements to the production of renewable
4    fuels, including but not limited to, cellulosic
5    conversion, water and energy conservation, fractionation,
6    alternative feedstocks, or reduced green house gas
7    emissions; (C) transmission lines and associated equipment
8    that transfer electricity from points of supply to points
9    of delivery for projects described in this subsection (b);
10    or (D) projects that use technology for the storage of
11    renewable energy, including, without limitation, the use
12    of battery or electrochemical storage technology for
13    mobile or stationary applications.
14    (c) Creation of reserve funds. The Authority may establish
15and maintain one or more reserve funds to enhance bonds issued
16by the Authority for a Clean Coal Project, a Coal Project, an
17Energy Efficiency Project, or a Renewable Energy Project. There
18may be one or more accounts in these reserve funds in which
19there may be deposited:
20        (1) any proceeds of the bonds issued by the Authority
21    required to be deposited therein by the terms of any
22    contract between the Authority and its bondholders or any
23    resolution of the Authority;
24        (2) any other moneys or funds of the Authority that it
25    may determine to deposit therein from any other source; and
26        (3) any other moneys or funds made available to the

 

 

09800SB1603ham001- 26 -LRB098 08881 HLH 45847 a

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

 

 

09800SB1603ham001- 27 -LRB098 08881 HLH 45847 a

1    program, subject to the requirements established by the
2    Act.
3        (5) To exercise such other powers as are necessary or
4    incidental to the foregoing.
5    (e) Clean Coal Project, Coal Project, Energy Efficiency
6Project, and Renewable Energy Project bond authorization and
7financing limits. In addition to any other bonds authorized to
8be issued under Sections 801-40(w), 825-60, 830-25 and 845-5,
9the Authority may have outstanding, at any time, bonds for the
10purpose enumerated in this Section 825-65 in an aggregate
11principal amount that shall not exceed $3,000,000,000, subject
12to the following limitations: (i) up to $300,000,000 may be
13issued to finance projects, as described in clause (C) of
14subsection (b)(i) and clause (C) of subsection (b)(iv) of this
15Section 825-65; (ii) up to $500,000,000 may be issued to
16finance projects, as described in clauses (D) and (E) of
17subsection (b)(i) of this Section 825-65; (iii) up to
18$2,000,000,000 may be issued to finance Clean Coal Projects, as
19described in clauses (A) and (B) of subsection (b)(i) of this
20Section 825-65 and Coal Projects, as described in subsection
21(b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000
22may be issued to finance Energy Efficiency Projects, as
23described in subsection (b)(iii) of this Section 825-65 and
24Renewable Energy Projects, as described in clauses (A), (B),
25and (D) of subsection (b)(iii) of this Section 825-65. An
26application for a loan financed from bond proceeds from a

 

 

09800SB1603ham001- 28 -LRB098 08881 HLH 45847 a

1borrower or its affiliates for a Clean Coal Project, a Coal
2Project, Energy Efficiency Project, or a Renewable Energy
3Project may not be approved by the Authority for an amount in
4excess of $450,000,000 for any borrower or its affiliates. A
5Clean Coal Project, a Coal Project or an Energy Efficiency
6Project may be located within the State or outside the State,
7provided, that if the Clean Coal Project, the Coal Project or
8the Energy Efficiency Project is located outside of the State,
9it is owned, operated, leased, or managed by an entity located
10within the State or any entity affiliated with an entity
11located within the State, or utilizes Illinois coal. These
12bonds shall not constitute an indebtedness or obligation of the
13State of Illinois and it shall be plainly stated on the face of
14each bond that it does not constitute an indebtedness or
15obligation of the State of Illinois, but is payable solely from
16the revenues, income or other assets of the Authority pledged
17therefor.
18    (f) The bonding authority granted under this Section is in
19addition to and not limited by the provisions of Section 845-5.
20(Source: P.A. 95-470, eff. 8-27-07; 96-103, eff. 1-1-10;
2196-817, eff. 1-1-10.)
 
22    (20 ILCS 3501/825-95)
23    Sec. 825-95. Emerald ash borer revolving loan program.
24    (a) The Illinois Finance Authority may shall administer an
25emerald ash borer revolving loan program. The program shall

 

 

09800SB1603ham001- 29 -LRB098 08881 HLH 45847 a

1provide low-interest or zero-interest loans to units of local
2government for the treatment of standing trees and replanting
3of trees on public lands that are within emerald ash borer
4quarantine areas as established by the Illinois Department of
5Agriculture. The Authority may shall make loans based on the
6recommendation of the Department of Agriculture. For the
7purposes of this Section, "treatment" means the
8administration, by environmentally sensitive processes and
9methods, of products and materials proven by academic research
10to protect ash trees from the invasive Emerald Ash Borer in
11order to prevent or reverse the damage and save the trees.
12    (b) The loan funds, subject to appropriation, must be paid
13out of the Emerald Ash Borer Revolving Loan Fund, a special
14fund created in the State treasury. The moneys in the Fund
15consist of any moneys transferred or appropriated into the Fund
16as well as all repayments of loans made under this program.
17Moneys in the Fund may be used only for loans to units of local
18government for the treatment of standing trees and replanting
19of trees within emerald ash borer quarantine areas established
20by the Department of Agriculture and for no other purpose. All
21interest earned on moneys in the Fund must be deposited into
22the Fund.
23    (c) A loan for the treatment of standing trees and
24replanting of trees on public lands within emerald ash borer
25quarantine areas established by the Department of Agriculture
26may not exceed $5,000,000 to any one unit of local government.

 

 

09800SB1603ham001- 30 -LRB098 08881 HLH 45847 a

1The repayment period for the loan may not exceed 20 years. The
2unit of local government shall repay, each year, at least 5% of
3the principal amount borrowed or the remaining balance of the
4loan, whichever is less. All repayments of loans must be
5deposited into the Emerald Ash Borer Revolving Loan Fund.
6    (d) Any loan under this Section to a unit of local
7government may not exceed the moneys that the unit of local
8government expends or dedicates for the reforestation project
9for which the loan is made.
10    (e) The Department of Agriculture may enter into agreements
11with a unit of local government under which the unit of local
12government is authorized to assist the Department in carrying
13out its duties in a quarantined area, including inspection and
14eradication of any dangerous insect or dangerous plant disease,
15and including the transportation, processing, and disposal of
16diseased material. The Department is authorized to provide
17compensation or financial assistance to the unit of local
18government for its costs.
19    (f) The Authority, with the assistance of the Department of
20Agriculture and the Department of Natural Resources, shall
21adopt rules to administer the program under this Section.
22(Source: P.A. 95-588, eff. 9-4-07; 95-876, eff. 8-21-08.)
 
23    (20 ILCS 3501/825-110)
24    Sec. 825-110. Implementation of ARRA provisions regarding
25qualified energy conservation bonds.
 

 

 

09800SB1603ham001- 31 -LRB098 08881 HLH 45847 a

1(a) Definitions.
2        (i) "Affected local government" means any county or
3    municipality within the State if the county or municipality
4    has a population of 100,000 or more, as defined in Section
5    54D(e)(2)(C) of the Code.
6        (ii) "Allocation amount" means the $133,846,000 amount
7    of qualified energy conservation bonds authorized under
8    ARRA for the financing of qualifying projects located
9    within the State and the sub-allocation of those amounts
10    among each affected local government.
11        (iii) "ARRA" means, collectively, the American
12    Recovery and Reinvestment Act of 2009, including, without
13    limitation, Section 54D of the Code; the guidance provided
14    by the Internal Revenue Service applicable to qualified
15    energy conservation bonds; and any legislation
16    subsequently adopted by the United States Congress to
17    extend or expand the economic development bond financing
18    incentives authorized by ARRA.
19        (iv) "ARRA implementing regulations" means the
20    regulations promulgated by the Authority as further
21    described in subdivision (c)(iv) of this Section to
22    implement the provisions of this Section.
23        (v) "Code" means the Internal Revenue Code of 1986, as
24    amended.
25        (vi) "Qualified energy conservation bond" means any

 

 

09800SB1603ham001- 32 -LRB098 08881 HLH 45847 a

1    qualified energy conservation bond issued pursuant to
2    Section 54D of the Code.
3        (vii) "Qualified energy conservation bond allocation"
4    means an allocation of authority to issue qualified energy
5    conservation bonds granted pursuant to Section 54D of the
6    Code.
7        (viii) "Regional authority" means the Central Illinois
8    Economic Development Authority, Eastern Illinois Economic
9    Development Authority, Joliet Arsenal Development
10    Authority, Quad Cities Regional Economic Development
11    Authority, Riverdale Development Authority, Southeastern
12    Illinois Economic Development Authority, Southern Illinois
13    Development Authority, Southwestern Illinois Development
14    Authority, Tri-County River Valley Development Authority,
15    Upper Illinois River Valley Development Authority,
16    Illinois Urban Development Authority, Western Illinois
17    Economic Development Authority, or Will-Kankakee Regional
18    Development Authority.
19        (ix) "Sub-allocation" means the portion of the
20    allocation amount allocated to each affected local
21    government.
22        (x) "Waived qualified energy conservation bond
23    allocation" means the amount of the qualified energy
24    conservation bond allocation that an affected local
25    government elects to reallocate to the State pursuant to
26    Section 54D(e)(2)(B) of the Code.

 

 

09800SB1603ham001- 33 -LRB098 08881 HLH 45847 a

1        (xi) "Waiver agreement" means an agreement between the
2    Authority and an affected local government providing for
3    the reallocation, in whole or in part, of that affected
4    local government's sub-allocation to the Authority. The
5    waiver agreement may provide for the payment of an affected
6    local government's reasonable fees and costs as determined
7    by the Authority in connection with the affected local
8    government's reallocation of its sub-allocation.
 
9(b) Findings.
10    It is found and declared that:
11        (i) it is in the public interest and for the benefit of
12    the State to maximize the use of economic development
13    incentives authorized by ARRA;
14        (ii) those incentives include the maximum use of the
15    allocation amount for the issuance of qualified energy
16    conservation bonds to promote energy conservation under
17    the applicable provisions of ARRA; and
18        (iii) those incentives also include the issuance by the
19    Authority of qualified energy conservation bonds for the
20    purposes of financing qualifying projects to be financed
21    with proceeds of qualified energy conservation bonds.
 
22(c) Powers of Authority.
23        (i) In order to carry out the provisions of ARRA and
24    further the purposes of this Section, the Authority has:

 

 

09800SB1603ham001- 34 -LRB098 08881 HLH 45847 a

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

 

 

09800SB1603ham001- 35 -LRB098 08881 HLH 45847 a

1        Authority pursuant to subsection (c)(i)(A)(2) back to
2        the Regional Authority that had the sub-allocation;
3            (C) the power to enter into waiver agreements with
4        affected local governments to provide for the
5        reallocation, in whole or in part, of their
6        sub-allocations, to receive waived qualified energy
7        conservation bond allocations from those affected
8        local governments, and to use those waived qualified
9        energy conservation bond allocations, in whole or in
10        part, to issue qualified energy conservation bonds of
11        the Authority for qualifying projects or to reallocate
12        those qualified energy conservation bond allocations,
13        in whole or in part, to a county or municipality to
14        issue its own energy conservation bonds for qualifying
15        projects; and
16            (D) the power to issue qualified energy
17        conservation bonds for any project authorized to be
18        financed with proceeds thereof under the applicable
19        provisions of ARRA.
20        (ii) In addition to the powers set forth in item (i),
21    the Authority shall be the sole recipient, on behalf of the
22    State, of any waived qualified energy conservation bond
23    allocations. Qualified energy conservation bond
24    allocations can be reallocated to the Authority only by
25    voluntary waiver as provided in this Section.
26        (iii) In addition to the powers set forth in items (i)

 

 

09800SB1603ham001- 36 -LRB098 08881 HLH 45847 a

1    and (ii), the Authority has any powers otherwise enjoyed by
2    the Authority in connection with the issuance of its bonds
3    if those powers are not in conflict with any provisions
4    with respect to qualified energy conservation bonds set
5    forth in ARRA.
6        (iv) The Authority has the power to adopt regulations
7    providing for the implementation of any of the provisions
8    contained in this Section, including the provisions
9    regarding waiver agreements and reallocation of all or any
10    portion of the allocation amount and sub-allocations and
11    the issuance of qualified energy conservation bonds;
12    except that those regulations shall not (1) provide any
13    waiver or reallocation of an affected local government's
14    sub-allocation other than a voluntary waiver as described
15    in subsection (c) or (2) be inconsistent with the
16    provisions of subsection (c)(i). Regulations adopted by
17    the Authority for determining reallocation of all or any
18    portion of a waived qualified energy conservation
19    allocation may include, but are not limited to, (1) the
20    ability of the county or municipality to issue qualified
21    energy conservation bonds by the end of a given calendar
22    year, (2) the amount of jobs that will be retained or
23    created, or both, by the qualifying project to be financed
24    by qualified energy conservation bonds, and (3) the
25    geographical proximity of the qualifying project to be
26    financed by qualified energy conservation bonds to a

 

 

09800SB1603ham001- 37 -LRB098 08881 HLH 45847 a

1    municipality or county that reallocated its sub-allocation
2    to the Authority.
 
3(d) Established dates for notice.
4    Any affected local government or regional authority that
5has issued qualified energy conservation bonds on or before the
6effective date of this Section must report its issuance of
7qualified energy conservation bonds to the Authority within 30
8days after the effective date of this Section. After the
9effective date of this Section, any affected local government
10or any regional authority must report its issuance of qualified
11energy conservation bonds to the Authority not less than 30
12days after those bonds are issued.
 
13(e) Reports to the General Assembly.
14    Starting 60 days after the effective date of this Section
15and ending when there is no longer any allocation amount, the
16Authority shall file a report before the end 15th day of each
17fiscal year month with the General Assembly detailing its
18implementation of this Section, including but not limited to
19the dollar amount of the allocation amount that has been
20reallocated by the Authority pursuant to this Section, the
21qualified energy conservation bonds issued in the State as of
22the date of the report, and descriptions of the qualifying
23projects financed by those qualified energy conservation
24bonds.

 

 

09800SB1603ham001- 38 -LRB098 08881 HLH 45847 a

1(Source: P.A. 96-1020, eff. 7-12-10.)
 
2    (20 ILCS 3501/830-10)
3    Sec. 830-10. (a) The Authority may shall establish a Farm
4Debt Relief Program to help provide eligible Illinois farmers
5with State assistance in meeting their farming-related debts.
6    (b) To be eligible for the program, a person must (1) be
7actively engaged in farming in this State, (2) have
8farming-related debts in an amount equal to at least 55% of the
9person's total assets, and (3) demonstrate that he can secure
10credit from a conventional lender for the 1986 crop year.
11    (c) An eligible person may apply to the Authority, in such
12manner as the Authority may specify, for a one-time farm debt
13relief payment of up to 2% of the person's outstanding
14farming-related debt. If the Authority determines that the
15applicant is eligible for a payment under this Section, it may
16then approve a payment to the applicant. Such payment shall
17consist of a payment made by the Authority directly to one or
18more of the applicant's farming-related creditors, to be
19applied to the reduction of the applicant's farming-related
20debt. The applicant shall be entitled to select the creditor or
21creditors to receive the payment, unless the applicant is
22subject to the jurisdiction of a bankruptcy court, in which
23case the selection of the court shall control.
24    (d) Payments shall be made from the Farm Emergency
25Assistance Fund, which is hereby established as a special fund

 

 

09800SB1603ham001- 39 -LRB098 08881 HLH 45847 a

1in the State treasury, from funds appropriated to the Authority
2for that purpose. No grant may exceed the lesser of (1) 2% of
3the applicant's outstanding farm-related debt, or (2) $2000.
4Not more than one grant under this Section may be made to any
5one person, or to any one household, or to any single farming
6operation.
7    (e) Payments to applicants having farming-related debts in
8an amount equal to at least 55% of the person's total assets,
9but less than 70%, shall be repaid by the applicant to the
10Authority for deposit into the Farm Emergency Assistance Fund
11within five years from the date the payment was made. Repayment
12shall be made in equal installments during the five-year period
13with no additional interest charge and may be prepaid in whole
14or in part at any time. Applicants having farming-related debts
15in an amount equal to at least 70% of the person's total assets
16shall not be required to make any repayment. Assets shall
17include, but not be limited to, the following: cash crops or
18feed on hand; livestock held for sale; breeding stock;
19marketable bonds and securities; securities not readily
20marketable; accounts receivable; notes receivable; cash
21invested in growing crops; net cash value of life insurance;
22machinery and equipment; cars and trucks; farm and other real
23estate including life estates and personal residence; value of
24beneficial interests in trusts; government payments or grants;
25and any other assets. Debts shall include, but not be limited
26to, the following: accounts payable; notes or other

 

 

09800SB1603ham001- 40 -LRB098 08881 HLH 45847 a

1indebtedness owed to any source; taxes; rent; amounts owed on
2real estate contracts or real estate mortgages; judgments;
3accrued interest payable; and any other liability.
4(Source: P.A. 93-205, eff. 1-1-04.)
 
5    (20 ILCS 3501/830-15)
6    Sec. 830-15. Interest-buy-back program.
7    (a) The Authority may shall establish an interest-buy-back
8program to subsidize the interest cost on certain loans to
9Illinois farmers.
10    (b) To be eligible an applicant must (i) be a resident of
11Illinois; (ii) be a principal operator of a farm or land; (iii)
12derive at least 50% of annual gross income from farming; and
13(iv) have a net worth of at least $10,000. The Authority shall
14establish minimum and maximum financial requirements, maximum
15payment amounts, starting and ending dates for the program, and
16other criteria.
17    (c) Lenders may apply on behalf of eligible applicants on
18forms provided by the Authority. Lenders may submit requests
19for payment on forms provided by the Authority. Lenders and
20applicants shall be responsible for any fees or charges the
21Authority may require.
22    (d) The Authority shall make payments to lenders from
23available appropriations from the General Revenue Fund.
24(Source: P.A. 93-205, eff. 1-1-04.)
 

 

 

09800SB1603ham001- 41 -LRB098 08881 HLH 45847 a

1    Section 10. The Illinois Environmental Facilities
2Financing Act is amended by changing Sections 2 and 3 and by
3adding Section 7.5 as follows:
 
4    (20 ILCS 3515/2)  (from Ch. 127, par. 722)
5    Sec. 2. Declaration of necessity and purpose - Liberal
6construction. (a) The General Assembly finds:
7    (i) that environmental damage seriously endangers the
8public health and welfare;
9    (ii) that such environmental damage results from air,
10water, and other resource pollution and from public water
11supply, solid waste disposal, noise, surface mining and other
12environmental problems;
13    (iii) that to reduce, control and prevent such pollution
14and problems, quality and land reclamation standards have been
15established necessitating the employment of anti-pollution and
16reclamation devices, equipment and facilities and stringent
17time schedules have been and will be imposed for compliance
18with such standards;
19    (iv) that it is desirable to provide additional and
20alternative methods of financing the costs of the acquisition
21and installation of the devices, equipment and facilities
22required to comply with the quality and land reclamation
23standards;
24    (v) that the alternative method of financing provided in
25this Act is therefore in the public interest and serves a

 

 

09800SB1603ham001- 42 -LRB098 08881 HLH 45847 a

1public purpose in protecting and promoting the health and
2welfare of the citizens of this state by reducing, controlling
3and preventing environmental damage;
4    (vi) that it is desirable to promote the use of Illinois
5coal in a manner that is consistent with air quality and land
6reclamation standards; and
7    (vii) that it is desirable to promote the use of
8alternative methods for managing hazardous wastes and to
9provide additional and alternative methods of financing the
10costs of establishing the recycling, incineration, physical,
11chemical and biological treatment, and other facilities
12necessary to meet the requirements of the Environmental
13Protection Act; and
14    (viii) that the environmental damage and pollution that
15occurs within this State often results from sources in other
16states, and that providing financing alternatives for
17environmental facilities that are located outside the State
18that are owned, operated, leased, managed by, or otherwise
19affiliated with, institutions located within the State can
20reduce, control, or prevent environmental damage and pollution
21within this State.
22    (b) It is the purpose of this Act, as more specifically
23described in later sections, to authorize the State authority
24to acquire, construct, reconstruct, repair, alter, improve,
25extend, own, finance, lease, sell and otherwise dispose of
26pollution control and surface mined land reclamation

 

 

09800SB1603ham001- 43 -LRB098 08881 HLH 45847 a

1facilities to the end that the State authority may be able to
2promote the health and welfare of the people of this State and
3to vest such State authority with all powers to enable such
4State authority to accomplish such purpose; it is not intended
5by this Act that the State authority shall itself be authorized
6to operate any such pollution control, hazardous waste
7treatment or surface mined land reclamation facilities; nor
8shall any such facilities be geographically located outside the
9State of Illinois. It is the intent of the General Assembly
10that access to the benefits of the financing herein provided
11for shall be equally available to all persons.
12    (c) It is the intent of the General Assembly that the State
13authority shall give special consideration to small businesses
14as defined in paragraph (i) of Section 3 of this Act in
15authorizing the issuance of bonds for the financing of
16pollution control or hazardous waste treatment facilities in
17order to assist small businesses in surviving the economic
18burdens imposed by the required financing of such facilities.
19    (d) Notwithstanding paragraph (b) of this Section, it is
20the intent of the General Assembly that with respect to
21applications involving environmental facilities for new
22coal-fired electric steam generating plants and new coal-fired
23industrial boilers as defined in paragraph (j) of Section 3 of
24this Act, the State authority shall only finance such
25facilities where Illinois coal will be used as the primary
26source of fuel. The Authority shall impose appropriate

 

 

09800SB1603ham001- 44 -LRB098 08881 HLH 45847 a

1financial penalties on any person who receives financing from
2the State Authority for environmental facilities based on a
3commitment to use Illinois coal as the primary source of fuel
4at a new coal-fired electric utility steam generating plant or
5new coal-fired industrial boiler and later uses a non-Illinois
6coal as the primary source of fuel.
7    (e) It is the intent of the General Assembly that the
8Authority give special consideration to projects which involve
9a reduction in volume of hazardous waste products generated, or
10the recycling, re-use, reclamation, or treatment of hazardous
11waste.
12     (f) This Act shall be liberally construed to accomplish
13the intentions expressed herein.
14(Source: P.A. 83-1362; 83-1442.)
 
15    (20 ILCS 3515/3)  (from Ch. 127, par. 723)
16    Sec. 3. Definitions. In this Act, unless the context
17otherwise clearly requires, the terms used herein shall have
18the meanings ascribed to them as follows:
19    (a) "Bonds" means any bonds, notes, debentures, temporary,
20interim or permanent certificates of indebtedness or other
21obligations evidencing indebtedness.
22    (b) "Directing body" means the members of the State
23authority.
24    (c) "Environmental facility" or "facilities" means any
25land, interest in land, building, structure, facility, system,

 

 

09800SB1603ham001- 45 -LRB098 08881 HLH 45847 a

1fixture, improvement, appurtenance, machinery, equipment or
2any combination thereof, and all real and personal property
3deemed necessary therewith, having to do with or the primary
4purpose of which is, reducing, controlling or preventing
5pollution, or reclaiming surface mined land. Environmental
6facilities may be located anywhere in this State and may
7include those facilities or processes used to (i) remove
8potential pollutants from coal prior to combustion, (ii) reduce
9the volume or composition of hazardous waste by changing or
10replacing manufacturing equipment or processes, (iii) recycle
11hazardous waste, or (iv) recover resources from hazardous
12waste. Environmental facilities may also include (i) solar
13collectors, solar storage mechanisms and solar energy systems,
14as defined in Section 10-5 of the Property Tax Code; (ii)
15facilities designed to collect, store, transfer, or
16distribute, for residential, commercial or industrial use,
17heat energy which is a by-product of industrial or energy
18generation processes and which would otherwise be wasted; (iii)
19facilities designed to remove pollutants from emissions that
20result from the combustion of coal; and (iv) facilities for the
21combustion of coal in a fluidized bed boiler. Environmental
22facilities may be located outside of the State, provided that
23the environmental facility must either (i) be owned, operated,
24leased, or managed by an entity located within the State or an
25entity affiliated with an entity located within the State or
26(ii) substantially reduce, control, and prevent the

 

 

09800SB1603ham001- 46 -LRB098 08881 HLH 45847 a

1environmental damage and pollution within the State.
2Environmental facilities include landfill gas recovery
3facilities, as defined in the Illinois Environmental
4Protection Act.
5    Environmental facilities do not include any land, interest
6in land, buildings, structure, facility, system, fixture,
7improvement, appurtenance, machinery, equipment or any
8combination thereof, and all real and personal property deemed
9necessary therewith, having to do with a hazardous waste
10disposal site, except where such land, interest in land,
11buildings, structure, facility, system, fixture, improvement,
12appurtenance, machinery, equipment, real or personal property
13are used for the management or recovery of gas generated by a
14hazardous waste disposal site or are used for recycling,
15reclamation, tank storage or treatment in tanks which occurs on
16the same site as a hazardous waste disposal site.
17    (d) "Finance" or "financing" means the issuing of revenue
18bonds pursuant to Section 9 of this Act by the State authority
19for the purpose of using the proceeds to pay project costs for
20an environmental or hazardous waste treatment facility
21including one in or to which title at all times remains in a
22person other than the State authority, in which case the bonds
23of the Authority are secured by a pledge of one or more notes,
24debentures, bonds or other obligations, secured or unsecured,
25of any person.
26    (e) "Person" means any individual, partnership,

 

 

09800SB1603ham001- 47 -LRB098 08881 HLH 45847 a

1copartnership, firm, company, corporation (including public
2utilities), association, joint stock company, trust, estate,
3political subdivision, state agency, or any other legal entity,
4or their legal representative, agent or assigns.
5    (f) "Pollution" means any form of environmental pollution
6including, but not limited to, water pollution, air pollution,
7land pollution, solid waste pollution, thermal pollution,
8radiation contamination, or noise pollution as determined by
9the various standards prescribed by this state or the federal
10government and including but not limited to, anything which is
11considered as pollution or environmental damage in the
12Environmental Protection Act, approved June 29, 1970, as now or
13hereafter amended.
14    (g) "Project costs" as applied to environmental or
15hazardous waste treatment facilities financed under this Act
16means and includes the sum total of all reasonable or necessary
17costs incidental to the acquisition, construction,
18reconstruction, repair, alteration, improvement and extension
19of such environmental or hazardous waste treatment facilities
20including without limitation the cost of studies and surveys;
21plans, specifications, architectural and engineering services;
22legal, organization, marketing or other special services;
23financing, acquisition, demolition, construction, equipment
24and site development of new and rehabilitated buildings;
25rehabilitation, reconstruction, repair or remodeling of
26existing buildings and all other necessary and incidental

 

 

09800SB1603ham001- 48 -LRB098 08881 HLH 45847 a

1expenses including an initial bond and interest reserve
2together with interest on bonds issued to finance such
3environmental or hazardous waste treatment facilities to a date
46 months subsequent to the estimated date of completion.
5    (h) "State authority" or "authority" means the Illinois
6Finance Authority created by the Illinois Finance Authority
7Act.
8    (i) "Small business" or "small businesses" means those
9commercial and manufacturing entities which at the time of
10their application to the authority meet those criteria, as
11interpreted and applied by the State authority, for definition
12as a "small business" established for the Small Business
13Administration and set forth as Section 121.3-10 of Part 121 of
14Title 13 of the Code of Federal Regulations as such Section is
15in effect on the effective date of this amendatory Act of 1975.
16    (j) "New coal-fired electric utility steam generating
17plants" and "new coal-fired industrial boilers" means those
18plants and boilers on which construction begins after the
19effective date of this amendatory Act of 1981.
20    (k) "Hazardous waste treatment facility" means any land,
21interest in land, building, structure, facility, system,
22fixture, improvement, appurtenance, machinery, equipment, or
23any combination thereof, and all real and personal property
24deemed necessary therewith, the primary purpose of which is to
25recycle, incinerate, or physically, chemically, biologically
26or otherwise treat hazardous wastes, or to reduce the

 

 

09800SB1603ham001- 49 -LRB098 08881 HLH 45847 a

1production of hazardous wastes by changing or replacing
2manufacturing equipment or processes, and which meets the
3requirements of the Environmental Protection Act and all
4regulations adopted thereunder.
5    (l) The term "significant presence" means the existence
6within the State of the national or regional headquarters of an
7entity or group or such other facility of an entity or group of
8entities where a significant amount of the business functions
9are performed for such entity or group of entities.
10(Source: P.A. 93-205, eff. 1-1-04.)
 
11    (20 ILCS 3515/7.5 new)
12    Sec. 7.5. Required findings for environmental facilities
13located outside the State. The State authority may approve an
14application to finance or refinance environmental facilities
15located outside of the State only after it has made either of
16the following findings with respect to such financing or
17refinancing, all of which shall be deemed conclusive:
18        (1) that all of the following conditions exist:
19            (A) the entity financing or refinancing an
20        environmental facility located outside the State, or
21        an affiliate thereof, is also engaged in the financing
22        or refinancing of an environmental facility located
23        within the State or, alternately, the entity seeking
24        the financing or refinancing, or an affiliate thereof,
25        maintains a significant presence within the State;

 

 

09800SB1603ham001- 50 -LRB098 08881 HLH 45847 a

1            (B) financing or refinancing the out-of-state
2        environmental facility would promote the interests of
3        the State for the benefit of the health, welfare,
4        safety, trade, commerce, industry, and economy of the
5        people of the State by reducing, controlling, or
6        preventing environmental damage and pollution within
7        the State or lowering the cost of environmental
8        facilities within the State by reducing the cost of
9        financing, refinancing, or operating environmental
10        facilities; and
11            (C) after giving effect to the financing or
12        refinancing of the out-of-state environmental
13        facility, the State authority shall have the ability to
14        issue at least an additional $250,000,000 in bonds
15        under Section 9 of this Act; or
16        (2) that financing or refinancing the out-of-state
17    environmental facility will substantially reduce, control,
18    or prevent environmental damage within the State.
19    The State authority shall not provide financing or
20refinancing for any project, or portion thereof, located
21outside the boundaries of the United States of America.
22    Notwithstanding any other provision of this Act, the
23Authority shall not provide financing or refinancing that uses
24State volume cap under Section 146 of the Internal Revenue Code
25of 1986, as amended, except as permitted under said Section
26146, or constitutes an indebtedness or obligation, general or

 

 

09800SB1603ham001- 51 -LRB098 08881 HLH 45847 a

1moral, or a pledge of the full faith or loan of credit of the
2State for any project, or portion thereof, that is located
3outside of the State.
 
4    Section 13. The Illinois Power Agency Act is amended by
5changing Section 1-10 as follows:
 
6    (20 ILCS 3855/1-10)
7    Sec. 1-10. Definitions.
8    "Agency" means the Illinois Power Agency.
9    "Agency loan agreement" means any agreement pursuant to
10which the Illinois Finance Authority agrees to loan the
11proceeds of revenue bonds issued with respect to a project to
12the Agency upon terms providing for loan repayment installments
13at least sufficient to pay when due all principal of, interest
14and premium, if any, on those revenue bonds, and providing for
15maintenance, insurance, and other matters in respect of the
16project.
17    "Authority" means the Illinois Finance Authority.
18    "Clean coal facility" means an electric generating
19facility that uses primarily coal as a feedstock and that
20captures and sequesters carbon dioxide emissions at the
21following levels: at least 50% of the total carbon dioxide
22emissions that the facility would otherwise emit if, at the
23time construction commences, the facility is scheduled to
24commence operation before 2016, at least 70% of the total

 

 

09800SB1603ham001- 52 -LRB098 08881 HLH 45847 a

1carbon dioxide emissions that the facility would otherwise emit
2if, at the time construction commences, the facility is
3scheduled to commence operation during 2016 or 2017, and at
4least 90% of the total carbon dioxide emissions that the
5facility would otherwise emit if, at the time construction
6commences, the facility is scheduled to commence operation
7after 2017. The power block of the clean coal facility shall
8not exceed allowable emission rates for sulfur dioxide,
9nitrogen oxides, carbon monoxide, particulates and mercury for
10a natural gas-fired combined-cycle facility the same size as
11and in the same location as the clean coal facility at the time
12the clean coal facility obtains an approved air permit. All
13coal used by a clean coal facility shall have high volatile
14bituminous rank and greater than 1.7 pounds of sulfur per
15million btu content, unless the clean coal facility does not
16use gasification technology and was operating as a conventional
17coal-fired electric generating facility on June 1, 2009 (the
18effective date of Public Act 95-1027).
19    "Clean coal SNG brownfield facility" means a facility that
20(1) has commenced construction by July 1, 2015 on an urban
21brownfield site in a municipality with at least 1,000,000
22residents; (2) uses a gasification process to produce
23substitute natural gas; (3) uses coal as at least 50% of the
24total feedstock over the term of any sourcing agreement with a
25utility and the remainder of the feedstock may be either
26petroleum coke or coal, with all such coal having a high

 

 

09800SB1603ham001- 53 -LRB098 08881 HLH 45847 a

1bituminous rank and greater than 1.7 pounds of sulfur per
2million Btu content unless the facility reasonably determines
3that it is necessary to use additional petroleum coke to
4deliver additional consumer savings, in which case the facility
5shall use coal for at least 35% of the total feedstock over the
6term of any sourcing agreement; and (4) captures and sequesters
7at least 85% of the total carbon dioxide emissions that the
8facility would otherwise emit.
9    "Clean coal SNG facility" means a facility that uses a
10gasification process to produce substitute natural gas, that
11sequesters at least 90% of the total carbon dioxide emissions
12that the facility would otherwise emit, that uses at least 90%
13coal as a feedstock, with all such coal having a high
14bituminous rank and greater than 1.7 pounds of sulfur per
15million btu content, and that has a valid and effective permit
16to construct emission sources and air pollution control
17equipment and approval with respect to the federal regulations
18for Prevention of Significant Deterioration of Air Quality
19(PSD) for the plant pursuant to the federal Clean Air Act;
20provided, however, a clean coal SNG brownfield facility shall
21not be a clean coal SNG facility.
22    "Commission" means the Illinois Commerce Commission.
23    "Costs incurred in connection with the development and
24construction of a facility" means:
25        (1) the cost of acquisition of all real property,
26    fixtures, and improvements in connection therewith and

 

 

09800SB1603ham001- 54 -LRB098 08881 HLH 45847 a

1    equipment, personal property, and other property, rights,
2    and easements acquired that are deemed necessary for the
3    operation and maintenance of the facility;
4        (2) financing costs with respect to bonds, notes, and
5    other evidences of indebtedness of the Agency;
6        (3) all origination, commitment, utilization,
7    facility, placement, underwriting, syndication, credit
8    enhancement, and rating agency fees;
9        (4) engineering, design, procurement, consulting,
10    legal, accounting, title insurance, survey, appraisal,
11    escrow, trustee, collateral agency, interest rate hedging,
12    interest rate swap, capitalized interest, contingency, as
13    required by lenders, and other financing costs, and other
14    expenses for professional services; and
15        (5) the costs of plans, specifications, site study and
16    investigation, installation, surveys, other Agency costs
17    and estimates of costs, and other expenses necessary or
18    incidental to determining the feasibility of any project,
19    together with such other expenses as may be necessary or
20    incidental to the financing, insuring, acquisition, and
21    construction of a specific project and starting up,
22    commissioning, and placing that project in operation.
23    "Department" means the Department of Commerce and Economic
24Opportunity.
25    "Director" means the Director of the Illinois Power Agency.
26    "Demand-response" means measures that decrease peak

 

 

09800SB1603ham001- 55 -LRB098 08881 HLH 45847 a

1electricity demand or shift demand from peak to off-peak
2periods.
3    "Distributed renewable energy generation device" means a
4device that is:
5        (1) powered by wind, solar thermal energy,
6    photovoltaic cells and panels, biodiesel, crops and
7    untreated and unadulterated organic waste biomass, tree
8    waste, and hydropower that does not involve new
9    construction or significant expansion of hydropower dams;
10        (2) interconnected at the distribution system level of
11    either an electric utility as defined in this Section, an
12    alternative retail electric supplier as defined in Section
13    16-102 of the Public Utilities Act, a municipal utility as
14    defined in Section 3-105 of the Public Utilities Act, or a
15    rural electric cooperative as defined in Section 3-119 of
16    the Public Utilities Act;
17        (3) located on the customer side of the customer's
18    electric meter and is primarily used to offset that
19    customer's electricity load; and
20        (4) limited in nameplate capacity to no more than 2,000
21    kilowatts.
22    "Energy efficiency" means measures that reduce the amount
23of electricity or natural gas required to achieve a given end
24use. "Energy efficiency" also includes measures that reduce the
25total Btus of electricity and natural gas needed to meet the
26end use or uses.

 

 

09800SB1603ham001- 56 -LRB098 08881 HLH 45847 a

1    "Electric utility" has the same definition as found in
2Section 16-102 of the Public Utilities Act.
3    "Facility" means an electric generating unit or a
4co-generating unit that produces electricity along with
5related equipment necessary to connect the facility to an
6electric transmission or distribution system.
7    "Governmental aggregator" means one or more units of local
8government that individually or collectively procure
9electricity to serve residential retail electrical loads
10located within its or their jurisdiction.
11    "Local government" means a unit of local government as
12defined in Section 1 of Article VII of the Illinois
13Constitution.
14    "Municipality" means a city, village, or incorporated
15town.
16    "Person" means any natural person, firm, partnership,
17corporation, either domestic or foreign, company, association,
18limited liability company, joint stock company, or association
19and includes any trustee, receiver, assignee, or personal
20representative thereof.
21    "Project" means the planning, bidding, and construction of
22a facility.
23    "Public utility" has the same definition as found in
24Section 3-105 of the Public Utilities Act.
25    "Real property" means any interest in land together with
26all structures, fixtures, and improvements thereon, including

 

 

09800SB1603ham001- 57 -LRB098 08881 HLH 45847 a

1lands under water and riparian rights, any easements,
2covenants, licenses, leases, rights-of-way, uses, and other
3interests, together with any liens, judgments, mortgages, or
4other claims or security interests related to real property.
5    "Renewable energy credit" means a tradable credit that
6represents the environmental attributes of a certain amount of
7energy produced from a renewable energy resource.
8    "Renewable energy resources" includes energy and its
9associated renewable energy credit or renewable energy credits
10from wind, solar thermal energy, photovoltaic cells and panels,
11biodiesel, anaerobic digestion, crops and untreated and
12unadulterated organic waste biomass, tree waste, hydropower
13that does not involve new construction or significant expansion
14of hydropower dams, and other alternative sources of
15environmentally preferable energy. For purposes of this Act,
16landfill gas produced in the State is considered a renewable
17energy resource. "Renewable energy resources" does not include
18the incineration or burning of tires, garbage, general
19household, institutional, and commercial waste, industrial
20lunchroom or office waste, landscape waste other than tree
21waste, railroad crossties, utility poles, or construction or
22demolition debris, other than untreated and unadulterated
23waste wood.
24    "Revenue bond" means any bond, note, or other evidence of
25indebtedness issued by the Authority, the principal and
26interest of which is payable solely from revenues or income

 

 

09800SB1603ham001- 58 -LRB098 08881 HLH 45847 a

1derived from any project or activity of the Agency.
2    "Sequester" means permanent storage of carbon dioxide by
3injecting it into a saline aquifer, a depleted gas reservoir,
4or an oil reservoir, directly or through an enhanced oil
5recovery process that may involve intermediate storage,
6regardless of whether these activities are conducted by a clean
7coal facility, a clean coal SNG facility, a clean coal SNG
8brownfield facility, or a party with which a clean coal
9facility, clean coal SNG facility, or clean coal SNG brownfield
10facility has contracted for such purposes.
11    "Sourcing agreement" means (i) in the case of an electric
12utility, an agreement between the owner of a clean coal
13facility and such electric utility, which agreement shall have
14terms and conditions meeting the requirements of paragraph (3)
15of subsection (d) of Section 1-75, (ii) in the case of an
16alternative retail electric supplier, an agreement between the
17owner of a clean coal facility and such alternative retail
18electric supplier, which agreement shall have terms and
19conditions meeting the requirements of Section 16-115(d)(5) of
20the Public Utilities Act, and (iii) in case of a gas utility,
21an agreement between the owner of a clean coal SNG brownfield
22facility and the gas utility, which agreement shall have the
23terms and conditions meeting the requirements of subsection
24(h-1) of Section 9-220 of the Public Utilities Act.
25    "Substitute natural gas" or "SNG" means a gas manufactured
26by gasification of hydrocarbon feedstock, which is

 

 

09800SB1603ham001- 59 -LRB098 08881 HLH 45847 a

1substantially interchangeable in use and distribution with
2conventional natural gas.
3    "Total resource cost test" or "TRC test" means a standard
4that is met if, for an investment in energy efficiency or
5demand-response measures, the benefit-cost ratio is greater
6than one. The benefit-cost ratio is the ratio of the net
7present value of the total benefits of the program to the net
8present value of the total costs as calculated over the
9lifetime of the measures. A total resource cost test compares
10the sum of avoided electric utility costs, representing the
11benefits that accrue to the system and the participant in the
12delivery of those efficiency measures, as well as other
13quantifiable societal benefits, including avoided natural gas
14utility costs, to the sum of all incremental costs of end-use
15measures that are implemented due to the program (including
16both utility and participant contributions), plus costs to
17administer, deliver, and evaluate each demand-side program, to
18quantify the net savings obtained by substituting the
19demand-side program for supply resources. In calculating
20avoided costs of power and energy that an electric utility
21would otherwise have had to acquire, reasonable estimates shall
22be included of financial costs likely to be imposed by future
23regulations and legislation on emissions of greenhouse gases.
24(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;
2596-784, eff. 8-28-09; 96-1000, eff. 7-2-10; 97-96, eff.
267-13-11; 97-239, eff. 8-2-11; 97-491, eff. 8-22-11; 97-616,

 

 

09800SB1603ham001- 60 -LRB098 08881 HLH 45847 a

1eff. 10-26-11; 97-813, eff. 7-13-12.)
 
2    Section 15. The Illinois Procurement Code is amended by
3changing Sections 1-10 and 53-25 as follows:
 
4    (30 ILCS 500/1-10)
5    Sec. 1-10. Application.
6    (a) This Code applies only to procurements for which
7contractors were first solicited on or after July 1, 1998. This
8Code shall not be construed to affect or impair any contract,
9or any provision of a contract, entered into based on a
10solicitation prior to the implementation date of this Code as
11described in Article 99, including but not limited to any
12covenant entered into with respect to any revenue bonds or
13similar instruments. All procurements for which contracts are
14solicited between the effective date of Articles 50 and 99 and
15July 1, 1998 shall be substantially in accordance with this
16Code and its intent.
17    (b) This Code shall apply regardless of the source of the
18funds with which the contracts are paid, including federal
19assistance moneys. This Code shall not apply to:
20        (1) Contracts between the State and its political
21    subdivisions or other governments, or between State
22    governmental bodies except as specifically provided in
23    this Code.
24        (2) Grants, except for the filing requirements of

 

 

09800SB1603ham001- 61 -LRB098 08881 HLH 45847 a

1    Section 20-80.
2        (3) Purchase of care.
3        (4) Hiring of an individual as employee and not as an
4    independent contractor, whether pursuant to an employment
5    code or policy or by contract directly with that
6    individual.
7        (5) Collective bargaining contracts.
8        (6) Purchase of real estate, except that notice of this
9    type of contract with a value of more than $25,000 must be
10    published in the Procurement Bulletin within 7 days after
11    the deed is recorded in the county of jurisdiction. The
12    notice shall identify the real estate purchased, the names
13    of all parties to the contract, the value of the contract,
14    and the effective date of the contract.
15        (7) Contracts necessary to prepare for anticipated
16    litigation, enforcement actions, or investigations,
17    provided that the chief legal counsel to the Governor shall
18    give his or her prior approval when the procuring agency is
19    one subject to the jurisdiction of the Governor, and
20    provided that the chief legal counsel of any other
21    procuring entity subject to this Code shall give his or her
22    prior approval when the procuring entity is not one subject
23    to the jurisdiction of the Governor.
24        (8) Contracts for services to Northern Illinois
25    University by a person, acting as an independent
26    contractor, who is qualified by education, experience, and

 

 

09800SB1603ham001- 62 -LRB098 08881 HLH 45847 a

1    technical ability and is selected by negotiation for the
2    purpose of providing non-credit educational service
3    activities or products by means of specialized programs
4    offered by the university.
5        (9) Procurement expenditures by the Illinois
6    Conservation Foundation when only private funds are used.
7        (10) Procurement expenditures by the Illinois Health
8    Information Exchange Authority involving private funds
9    from the Health Information Exchange Fund. "Private funds"
10    means gifts, donations, and private grants.
11        (11) Public-private agreements entered into according
12    to the procurement requirements of Section 20 of the
13    Public-Private Partnerships for Transportation Act and
14    design-build agreements entered into according to the
15    procurement requirements of Section 25 of the
16    Public-Private Partnerships for Transportation Act.
17        (12) Contracts entered into on or before December 31,
18    2018 by the Illinois Finance Authority for financing
19    transactions in which the State of Illinois is not
20    obligated. Such contracts shall be awarded through a
21    competitive process authorized by the Board of the Illinois
22    Finance Authority and are subject to Sections 5-30, 20-160,
23    50-13, 50-20, 50-35, and 50-37 of this Code, as well as the
24    final approval by the Board of Illinois Finance Authority
25    of the terms of the contract.
26    Notwithstanding any other provision of law, contracts

 

 

09800SB1603ham001- 63 -LRB098 08881 HLH 45847 a

1entered into under item (12) of this subsection (b) shall be
2published in the Procurement Bulletin within 14 days after
3contract execution. The chief procurement officer shall
4prescribe the form and content of the notice. The Illinois
5Finance Authority shall provide the chief procurement officer,
6on a monthly basis, in the form and content prescribed by the
7chief procurement officer, a report of contracts that are
8related to the procurement of goods and services identified in
9item (12) of this subsection (b). At a minimum, this report
10shall include the name of the contractor, a description of the
11supply or service provided, the total amount of the contract,
12the term of the contract, and the exception to the Code
13utilized. A copy of each of these contracts shall be made
14available to the chief procurement officer immediately upon
15request. The chief procurement officer shall submit a report to
16the Governor and General Assembly no later than November 1 of
17each year that shall include, at a minimum, an annual summary
18of the monthly information reported to the chief procurement
19officer.
20    (c) This Code does not apply to the electric power
21procurement process provided for under Section 1-75 of the
22Illinois Power Agency Act and Section 16-111.5 of the Public
23Utilities Act.
24    (d) Except for Section 20-160 and Article 50 of this Code,
25and as expressly required by Section 9.1 of the Illinois
26Lottery Law, the provisions of this Code do not apply to the

 

 

09800SB1603ham001- 64 -LRB098 08881 HLH 45847 a

1procurement process provided for under Section 9.1 of the
2Illinois Lottery Law.
3    (e) This Code does not apply to the process used by the
4Capital Development Board to retain a person or entity to
5assist the Capital Development Board with its duties related to
6the determination of costs of a clean coal SNG brownfield
7facility, as defined by Section 1-10 of the Illinois Power
8Agency Act, as required in subsection (h-3) of Section 9-220 of
9the Public Utilities Act, including calculating the range of
10capital costs, the range of operating and maintenance costs, or
11the sequestration costs or monitoring the construction of clean
12coal SNG brownfield facility for the full duration of
13construction.
14    (f) This Code does not apply to the process used by the
15Illinois Power Agency to retain a mediator to mediate sourcing
16agreement disputes between gas utilities and the clean coal SNG
17brownfield facility, as defined in Section 1-10 of the Illinois
18Power Agency Act, as required under subsection (h-1) of Section
199-220 of the Public Utilities Act.
20    (g) This Code does not apply to the processes used by the
21Illinois Power Agency to retain a mediator to mediate contract
22disputes between gas utilities and the clean coal SNG facility
23and to retain an expert to assist in the review of contracts
24under subsection (h) of Section 9-220 of the Public Utilities
25Act. This Code does not apply to the process used by the
26Illinois Commerce Commission to retain an expert to assist in

 

 

09800SB1603ham001- 65 -LRB098 08881 HLH 45847 a

1determining the actual incurred costs of the clean coal SNG
2facility and the reasonableness of those costs as required
3under subsection (h) of Section 9-220 of the Public Utilities
4Act.
5    (h) This Code does not apply to the process to procure or
6contracts entered into in accordance with Sections 11-5.2 and
711-5.3 of the Illinois Public Aid Code.
8    (i) (h) Each chief procurement officer may access records
9necessary to review whether a contract, purchase, or other
10expenditure is or is not subject to the provisions of this
11Code, unless such records would be subject to attorney-client
12privilege.
13(Source: P.A. 96-840, eff. 12-23-09; 96-1331, eff. 7-27-10;
1497-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-502, eff. 8-23-11;
1597-689, eff. 6-14-12; 97-813, eff. 7-13-12; 97-895, eff.
168-3-12; revised 8-23-12.)
 
17    (30 ILCS 500/53-25)
18    Sec. 53-25. Public institutions of higher education.
19    (a) Each public institution of higher education may enter
20into concessions, including the assignment, license, sale, or
21transfer of interests in or rights to discoveries, inventions,
22patents, or copyrightable works, for property, whether
23tangible or intangible, over which it has jurisdiction.
24Concessions shall be reduced to writing and shall be awarded at
25the discretion of the institution with jurisdiction over the

 

 

09800SB1603ham001- 66 -LRB098 08881 HLH 45847 a

1property. The duration and terms of concessions and leases
2shall be at the discretion of the institution with jurisdiction
3over the property. Notice of the award of a concession shall be
4published in the higher education volume of the Illinois
5Procurement Bulletin.
6    (b) The duration and terms of concessions and leases for
7personal property shall be at the discretion of the institution
8with jurisdiction over the property.
9    (c) Notwithstanding any other provision of law, if the
10Illinois Finance Authority issues bonds for the financing of
11buildings, structures, or facilities that are determined by the
12governing board of a public institution of higher education to
13be either required by or necessary for the use or benefit of
14that public institution of higher education, then the duration
15of any lease for real property entered into by that public
16institution of higher education, as lessee or lessor, in
17connection with the issuance of those bonds shall be at the
18discretion of that public institution of higher education.
19(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
 
20    Section 20. The Illinois Municipal Code is amended by
21changing Section 11-20-12 as follows:
 
22    (65 ILCS 5/11-20-12)  (from Ch. 24, par. 11-20-12)
23    Sec. 11-20-12. Removal of infected trees.
24    (a) The corporate authorities of each municipality may

 

 

09800SB1603ham001- 67 -LRB098 08881 HLH 45847 a

1provide for the treatment or removal of elm trees infected with
2Dutch elm disease or ash trees infected with the emerald ash
3borer (Agrilus planipennis Fairmaire) from any parcel of
4private property within the municipality if the owners of that
5parcel, after reasonable notice, refuse or neglect to treat or
6remove the infected trees. The municipality may collect, from
7the owners of the parcel, the reasonable removal cost.
8    (b) The municipality's removal cost under this Section is a
9lien upon the underlying parcel in accordance with Section
1011-20-15.
11    (c) For the purpose of this Section, "removal cost" means
12the total cost of the removal of the infected trees.
13"Treatment" means the administration, by environmentally
14sensitive processes and methods, of products and materials
15proven by academic research to protect elm and ash trees from
16an invasive disease in order to prevent or reverse the damage
17and save the trees.
18    (d) In the case of an abandoned residential property as
19defined in Section 11-20-15.1, the municipality may elect to
20obtain a lien for the removal cost pursuant to Section
2111-20-15.1, in which case the provisions of Section 11-20-15.1
22shall be the exclusive remedy for the removal cost.
23    The provisions of this subsection (d), other than this
24sentence, are inoperative upon certification by the Secretary
25of the Illinois Department of Financial and Professional
26Regulation, after consultation with the United States

 

 

09800SB1603ham001- 68 -LRB098 08881 HLH 45847 a

1Department of Housing and Urban Development, that the Mortgage
2Electronic Registration System program is effectively
3registering substantially all mortgaged residential properties
4located in the State of Illinois, is available for access by
5all municipalities located in the State of Illinois without
6charge to them, and such registration includes the telephone
7number for the mortgage servicer.
8(Source: P.A. 95-183, eff. 8-14-07; 96-462, eff. 8-14-09;
996-856, eff. 3-1-10.)
 
10    Section 25. The Public Utilities Act is amended by changing
11Sections 8-103 and 8-104 as follows:
 
12    (220 ILCS 5/8-103)
13    Sec. 8-103. Energy efficiency and demand-response
14measures.
15    (a) It is the policy of the State that electric utilities
16are required to use cost-effective energy efficiency and
17demand-response measures to reduce delivery load. Requiring
18investment in cost-effective energy efficiency and
19demand-response measures will reduce direct and indirect costs
20to consumers by decreasing environmental impacts and by
21avoiding or delaying the need for new generation, transmission,
22and distribution infrastructure. It serves the public interest
23to allow electric utilities to recover costs for reasonably and
24prudently incurred expenses for energy efficiency and

 

 

09800SB1603ham001- 69 -LRB098 08881 HLH 45847 a

1demand-response measures. As used in this Section,
2"cost-effective" means that the measures satisfy the total
3resource cost test. The low-income measures described in
4subsection (f)(4) of this Section shall not be required to meet
5the total resource cost test. For purposes of this Section, the
6terms "energy-efficiency", "demand-response", "electric
7utility", and "total resource cost test" shall have the
8meanings set forth in the Illinois Power Agency Act. For
9purposes of this Section, the amount per kilowatthour means the
10total amount paid for electric service expressed on a per
11kilowatthour basis. For purposes of this Section, the total
12amount paid for electric service includes without limitation
13estimated amounts paid for supply, transmission, distribution,
14surcharges, and add-on-taxes.
15    (b) Electric utilities shall implement cost-effective
16energy efficiency measures to meet the following incremental
17annual energy savings goals:
18        (1) 0.2% of energy delivered in the year commencing
19    June 1, 2008;
20        (2) 0.4% of energy delivered in the year commencing
21    June 1, 2009;
22        (3) 0.6% of energy delivered in the year commencing
23    June 1, 2010;
24        (4) 0.8% of energy delivered in the year commencing
25    June 1, 2011;
26        (5) 1% of energy delivered in the year commencing June

 

 

09800SB1603ham001- 70 -LRB098 08881 HLH 45847 a

1    1, 2012;
2        (6) 1.4% of energy delivered in the year commencing
3    June 1, 2013;
4        (7) 1.8% of energy delivered in the year commencing
5    June 1, 2014; and
6        (8) 2% of energy delivered in the year commencing June
7    1, 2015 and each year thereafter.
8    Electric utilities may comply with this subsection (b) by
9meeting the annual incremental savings goal in the applicable
10year or by showing that total savings associated with measures
11implemented on or after May 31, 2014 were equal to the sum of
12each annual incremental savings goal on or after June 1, 2014
13through the end of the applicable year.
14    (c) Electric utilities shall implement cost-effective
15demand-response measures to reduce peak demand by 0.1% over the
16prior year for eligible retail customers, as defined in Section
1716-111.5 of this Act, and for customers that elect hourly
18service from the utility pursuant to Section 16-107 of this
19Act, provided those customers have not been declared
20competitive. This requirement commences June 1, 2008 and
21continues for 10 years.
22    (d) Notwithstanding the requirements of subsections (b)
23and (c) of this Section, an electric utility shall reduce the
24amount of energy efficiency and demand-response measures
25implemented over in any 3-year period single year by an amount
26necessary to limit the estimated average annual increase in the

 

 

09800SB1603ham001- 71 -LRB098 08881 HLH 45847 a

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

 

 

09800SB1603ham001- 72 -LRB098 08881 HLH 45847 a

1    than the greater of 2.015% of the amount paid per
2    kilowatthour by those customers during the year ending May
3    31, 2007 or the incremental amount per kilowatthour paid
4    for these measures in 2011.
5    No later than June 30, 2011, the Commission shall review
6the limitation on the amount of energy efficiency and
7demand-response measures implemented pursuant to this Section
8and report to the General Assembly its findings as to whether
9that limitation unduly constrains the procurement of energy
10efficiency and demand-response measures.
11    (e) Electric utilities shall be responsible for overseeing
12the design, development, and filing of energy efficiency and
13demand-response plans with the Commission. Electric utilities
14shall implement 100% of the demand-response measures in the
15plans. Electric utilities shall implement 75% of the energy
16efficiency measures approved by the Commission, and may, as
17part of that implementation, outsource various aspects of
18program development and implementation. The remaining 25% of
19those energy efficiency measures approved by the Commission
20shall be implemented by the Department of Commerce and Economic
21Opportunity, and must be designed in conjunction with the
22utility and the filing process. The Department may outsource
23development and implementation of energy efficiency measures.
24A minimum of 10% of the entire portfolio of cost-effective
25energy efficiency measures shall be procured from units of
26local government, municipal corporations, school districts,

 

 

09800SB1603ham001- 73 -LRB098 08881 HLH 45847 a

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

 

 

09800SB1603ham001- 74 -LRB098 08881 HLH 45847 a

1to match annual expenditures.
2    Each utility shall include, in its recovery of costs, the
3costs estimated for both the utility's and the Department's
4implementation of energy efficiency and demand-response
5measures. Costs collected by the utility for measures
6implemented by the Department shall be submitted to the
7Department pursuant to Section 605-323 of the Civil
8Administrative Code of Illinois, shall be deposited into the
9Energy Efficiency Portfolio Standards Fund, and shall be used
10by the Department solely for the purpose of implementing these
11measures. A utility shall not be required to advance any moneys
12to the Department but only to forward such funds as it has
13collected. The Department shall report to the Commission on an
14annual basis regarding the costs actually incurred by the
15Department in the implementation of the measures. Any changes
16to the costs of energy efficiency measures as a result of plan
17modifications shall be appropriately reflected in amounts
18recovered by the utility and turned over to the Department.
19    The portfolio of measures, administered by both the
20utilities and the Department, shall, in combination, be
21designed to achieve the annual savings targets described in
22subsections (b) and (c) of this Section, as modified by
23subsection (d) of this Section.
24    The utility and the Department shall agree upon a
25reasonable portfolio of measures and determine the measurable
26corresponding percentage of the savings goals associated with

 

 

09800SB1603ham001- 75 -LRB098 08881 HLH 45847 a

1measures implemented by the utility or Department.
2    No utility shall be assessed a penalty under subsection (f)
3of this Section for failure to make a timely filing if that
4failure is the result of a lack of agreement with the
5Department with respect to the allocation of responsibilities
6or related costs or target assignments. In that case, the
7Department and the utility shall file their respective plans
8with the Commission and the Commission shall determine an
9appropriate division of measures and programs that meets the
10requirements of this Section.
11    If the Department is unable to meet incremental annual
12performance goals for the portion of the portfolio implemented
13by the Department, then the utility and the Department shall
14jointly submit a modified filing to the Commission explaining
15the performance shortfall and recommending an appropriate
16course going forward, including any program modifications that
17may be appropriate in light of the evaluations conducted under
18item (7) of subsection (f) of this Section. In this case, the
19utility obligation to collect the Department's costs and turn
20over those funds to the Department under this subsection (e)
21shall continue only if the Commission approves the
22modifications to the plan proposed by the Department.
23    (f) No later than November 15, 2007, each electric utility
24shall file an energy efficiency and demand-response plan with
25the Commission to meet the energy efficiency and
26demand-response standards for 2008 through 2010. No later than

 

 

09800SB1603ham001- 76 -LRB098 08881 HLH 45847 a

1October 1, 2010, each electric utility shall file an energy
2efficiency and demand-response plan with the Commission to meet
3the energy efficiency and demand-response standards for 2011
4through 2013. Every 3 years thereafter, each electric utility
5shall file, no later than September 1, an energy efficiency and
6demand-response plan with the Commission. If a utility does not
7file such a plan by September 1 of an applicable year, it shall
8face a penalty of $100,000 per day until the plan is filed.
9Each utility's plan shall set forth the utility's proposals to
10meet the utility's portion of the energy efficiency standards
11identified in subsection (b) and the demand-response standards
12identified in subsection (c) of this Section as modified by
13subsections (d) and (e), taking into account the unique
14circumstances of the utility's service territory. The
15Commission shall seek public comment on the utility's plan and
16shall issue an order approving or disapproving each plan within
175 months after its submission. If the Commission disapproves a
18plan, the Commission shall, within 30 days, describe in detail
19the reasons for the disapproval and describe a path by which
20the utility may file a revised draft of the plan to address the
21Commission's concerns satisfactorily. If the utility does not
22refile with the Commission within 60 days, the utility shall be
23subject to penalties at a rate of $100,000 per day until the
24plan is filed. This process shall continue, and penalties shall
25accrue, until the utility has successfully filed a portfolio of
26energy efficiency and demand-response measures. Penalties

 

 

09800SB1603ham001- 77 -LRB098 08881 HLH 45847 a

1shall be deposited into the Energy Efficiency Trust Fund. In
2submitting proposed energy efficiency and demand-response
3plans and funding levels to meet the savings goals adopted by
4this Act the utility shall:
5        (1) Demonstrate that its proposed energy efficiency
6    and demand-response measures will achieve the requirements
7    that are identified in subsections (b) and (c) of this
8    Section, as modified by subsections (d) and (e).
9        (2) Present specific proposals to implement new
10    building and appliance standards that have been placed into
11    effect.
12        (3) Present estimates of the total amount paid for
13    electric service expressed on a per kilowatthour basis
14    associated with the proposed portfolio of measures
15    designed to meet the requirements that are identified in
16    subsections (b) and (c) of this Section, as modified by
17    subsections (d) and (e).
18        (4) Coordinate with the Department to present a
19    portfolio of energy efficiency measures proportionate to
20    the share of total annual utility revenues in Illinois from
21    households at or below 150% of the poverty level. The
22    energy efficiency programs shall be targeted to households
23    with incomes at or below 80% of area median income.
24        (5) Demonstrate that its overall portfolio of energy
25    efficiency and demand-response measures, not including
26    programs covered by item (4) of this subsection (f), are

 

 

09800SB1603ham001- 78 -LRB098 08881 HLH 45847 a

1    cost-effective using the total resource cost test and
2    represent a diverse cross-section of opportunities for
3    customers of all rate classes to participate in the
4    programs.
5        (6) Include a proposed cost-recovery tariff mechanism
6    to fund the proposed energy efficiency and demand-response
7    measures and to ensure the recovery of the prudently and
8    reasonably incurred costs of Commission-approved programs.
9        (7) Provide for an annual independent evaluation of the
10    performance of the cost-effectiveness of the utility's
11    portfolio of measures and the Department's portfolio of
12    measures, as well as a full review of the 3-year results of
13    the broader net program impacts and, to the extent
14    practical, for adjustment of the measures on a
15    going-forward basis as a result of the evaluations. The
16    resources dedicated to evaluation shall not exceed 3% of
17    portfolio resources in any given year.
18    (g) No more than 3% of energy efficiency and
19demand-response program revenue may be allocated for
20demonstration of breakthrough equipment and devices.
21    (h) This Section does not apply to an electric utility that
22on December 31, 2005 provided electric service to fewer than
23100,000 customers in Illinois.
24    (i) If, after 2 years, an electric utility fails to meet
25the efficiency standard specified in subsection (b) of this
26Section, as modified by subsections (d) and (e), it shall make

 

 

09800SB1603ham001- 79 -LRB098 08881 HLH 45847 a

1a contribution to the Low-Income Home Energy Assistance
2Program. The combined total liability for failure to meet the
3goal shall be $1,000,000, which shall be assessed as follows: a
4large electric utility shall pay $665,000, and a medium
5electric utility shall pay $335,000. If, after 3 years, an
6electric utility fails to meet the efficiency standard
7specified in subsection (b) of this Section, as modified by
8subsections (d) and (e), it shall make a contribution to the
9Low-Income Home Energy Assistance Program. The combined total
10liability for failure to meet the goal shall be $1,000,000,
11which shall be assessed as follows: a large electric utility
12shall pay $665,000, and a medium electric utility shall pay
13$335,000. In addition, the responsibility for implementing the
14energy efficiency measures of the utility making the payment
15shall be transferred to the Illinois Power Agency if, after 3
16years, or in any subsequent 3-year period, the utility fails to
17meet the efficiency standard specified in subsection (b) of
18this Section, as modified by subsections (d) and (e). The
19Agency shall implement a competitive procurement program to
20procure resources necessary to meet the standards specified in
21this Section as modified by subsections (d) and (e), with costs
22for those resources to be recovered in the same manner as
23products purchased through the procurement plan as provided in
24Section 16-111.5. The Director shall implement this
25requirement in connection with the procurement plan as provided
26in Section 16-111.5.

 

 

09800SB1603ham001- 80 -LRB098 08881 HLH 45847 a

1    For purposes of this Section, (i) a "large electric
2utility" is an electric utility that, on December 31, 2005,
3served more than 2,000,000 electric customers in Illinois; (ii)
4a "medium electric utility" is an electric utility that, on
5December 31, 2005, served 2,000,000 or fewer but more than
6100,000 electric customers in Illinois; and (iii) Illinois
7electric utilities that are affiliated by virtue of a common
8parent company are considered a single electric utility.
9    (j) If, after 3 years, or any subsequent 3-year period, the
10Department fails to implement the Department's share of energy
11efficiency measures required by the standards in subsection
12(b), then the Illinois Power Agency may assume responsibility
13for and control of the Department's share of the required
14energy efficiency measures. The Agency shall implement a
15competitive procurement program to procure resources necessary
16to meet the standards specified in this Section, with the costs
17of these resources to be recovered in the same manner as
18provided for the Department in this Section.
19    (k) No electric utility shall be deemed to have failed to
20meet the energy efficiency standards to the extent any such
21failure is due to a failure of the Department or the Agency.
22(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;
2396-1000, eff. 7-2-10; 97-616, eff. 10-26-11; 97-841, eff.
247-20-12.)
 
25    (220 ILCS 5/8-104)

 

 

09800SB1603ham001- 81 -LRB098 08881 HLH 45847 a

1    Sec. 8-104. Natural gas energy efficiency programs.
2    (a) It is the policy of the State that natural gas
3utilities and the Department of Commerce and Economic
4Opportunity are required to use cost-effective energy
5efficiency to reduce direct and indirect costs to consumers. It
6serves the public interest to allow natural gas utilities to
7recover costs for reasonably and prudently incurred expenses
8for cost-effective energy efficiency measures.
9    (b) For purposes of this Section, "energy efficiency" means
10measures that reduce the amount of energy required to achieve a
11given end use. "Energy efficiency" also includes measures that
12reduce the total Btus of electricity and natural gas needed to
13meet the end use or uses. "Cost-effective" and "cost-effective"
14means that the measures satisfy the total resource cost test
15which, for purposes of this Section, means a standard that is
16met if, for an investment in energy efficiency, the
17benefit-cost ratio is greater than one. The benefit-cost ratio
18is the ratio of the net present value of the total benefits of
19the measures to the net present value of the total costs as
20calculated over the lifetime of the measures. The total
21resource cost test compares the sum of avoided natural gas
22utility costs, representing the benefits that accrue to the
23system and the participant in the delivery of those efficiency
24measures, as well as other quantifiable societal benefits,
25including avoided electric utility costs, to the sum of all
26incremental costs of end use measures (including both utility

 

 

09800SB1603ham001- 82 -LRB098 08881 HLH 45847 a

1and participant contributions), plus costs to administer,
2deliver, and evaluate each demand-side measure, to quantify the
3net savings obtained by substituting demand-side measures for
4supply resources. In calculating avoided costs, reasonable
5estimates shall be included for financial costs likely to be
6imposed by future regulation of emissions of greenhouse gases.
7The low-income programs described in item (4) of subsection (f)
8of this Section shall not be required to meet the total
9resource cost test.
10    (c) Natural gas utilities shall implement cost-effective
11energy efficiency measures to meet at least the following
12natural gas savings requirements, which shall be based upon the
13total amount of gas delivered to retail customers, other than
14the customers described in subsection (m) of this Section,
15during calendar year 2009 multiplied by the applicable
16percentage. Natural gas utilities may comply with this Section
17by meeting the annual incremental savings goal in the
18applicable year or by showing that total savings associated
19with measures implemented after May 31, 2011 were equal to the
20sum of each annual incremental savings requirement from May 31,
212011 through the end of the applicable year:
22        (1) 0.2% by May 31, 2012;
23        (2) an additional 0.4% by May 31, 2013, increasing
24    total savings to .6%;
25        (3) an additional 0.6% by May 31, 2014, increasing
26    total savings to 1.2%;

 

 

09800SB1603ham001- 83 -LRB098 08881 HLH 45847 a

1        (4) an additional 0.8% by May 31, 2015, increasing
2    total savings to 2.0%;
3        (5) an additional 1% by May 31, 2016, increasing total
4    savings to 3.0%;
5        (6) an additional 1.2% by May 31, 2017, increasing
6    total savings to 4.2%;
7        (7) an additional 1.4% by May 31, 2018, increasing
8    total savings to 5.6%;
9        (8) an additional 1.5% by May 31, 2019, increasing
10    total savings to 7.1%; and
11        (9) an additional 1.5% in each 12-month period
12    thereafter.
13    (d) Notwithstanding the requirements of subsection (c) of
14this Section, a natural gas utility shall limit the amount of
15energy efficiency implemented in any 3-year reporting period
16established by subsection (f) of Section 8-104 of this Act, by
17an amount necessary to limit the estimated average increase in
18the amounts paid by retail customers in connection with natural
19gas service to no more than 2% in the applicable 3-year
20reporting period. The energy savings requirements in
21subsection (c) of this Section may be reduced by the Commission
22for the subject plan, if the utility demonstrates by
23substantial evidence that it is highly unlikely that the
24requirements could be achieved without exceeding the
25applicable spending limits in any 3-year reporting period. No
26later than September 1, 2013, the Commission shall review the

 

 

09800SB1603ham001- 84 -LRB098 08881 HLH 45847 a

1limitation on the amount of energy efficiency measures
2implemented pursuant to this Section and report to the General
3Assembly, in the report required by subsection (k) of this
4Section, its findings as to whether that limitation unduly
5constrains the procurement of energy efficiency measures.
6    (e) Natural gas utilities shall be responsible for
7overseeing the design, development, and filing of their
8efficiency plans with the Commission. The utility shall utilize
975% of the available funding associated with energy efficiency
10programs approved by the Commission, and may outsource various
11aspects of program development and implementation. The
12remaining 25% of available funding shall be used by the
13Department of Commerce and Economic Opportunity to implement
14energy efficiency measures that achieve no less than 20% of the
15requirements of subsection (c) of this Section. Such measures
16shall be designed in conjunction with the utility and approved
17by the Commission. The Department may outsource development and
18implementation of energy efficiency measures. A minimum of 10%
19of the entire portfolio of cost-effective energy efficiency
20measures shall be procured from local government, municipal
21corporations, school districts, and community college
22districts. Five percent of the entire portfolio of
23cost-effective energy efficiency measures may be granted to
24local government and municipal corporations for market
25transformation initiatives. The Department shall coordinate
26the implementation of these measures and shall integrate

 

 

09800SB1603ham001- 85 -LRB098 08881 HLH 45847 a

1delivery of natural gas efficiency programs with electric
2efficiency programs delivered pursuant to Section 8-103 of this
3Act, unless the Department can show that integration is not
4feasible.
5    The apportionment of the dollars to cover the costs to
6implement the Department's share of the portfolio of energy
7efficiency measures shall be made to the Department once the
8Department has executed rebate agreements, grants, or
9contracts for energy efficiency measures and provided
10supporting documentation for those rebate agreements, grants,
11and contracts to the utility. The Department is authorized to
12adopt any rules necessary and prescribe procedures in order to
13ensure compliance by applicants in carrying out the purposes of
14rebate agreements for energy efficiency measures implemented
15by the Department made under this Section.
16    The details of the measures implemented by the Department
17shall be submitted by the Department to the Commission in
18connection with the utility's filing regarding the energy
19efficiency measures that the utility implements.
20    A utility providing approved energy efficiency measures in
21this State shall be permitted to recover costs of those
22measures through an automatic adjustment clause tariff filed
23with and approved by the Commission. The tariff shall be
24established outside the context of a general rate case and
25shall be applicable to the utility's customers other than the
26customers described in subsection (m) of this Section. Each

 

 

09800SB1603ham001- 86 -LRB098 08881 HLH 45847 a

1year the Commission shall initiate a review to reconcile any
2amounts collected with the actual costs and to determine the
3required adjustment to the annual tariff factor to match annual
4expenditures.
5    Each utility shall include, in its recovery of costs, the
6costs estimated for both the utility's and the Department's
7implementation of energy efficiency measures. Costs collected
8by the utility for measures implemented by the Department shall
9be submitted to the Department pursuant to Section 605-323 of
10the Civil Administrative Code of Illinois, shall be deposited
11into the Energy Efficiency Portfolio Standards Fund, and shall
12be used by the Department solely for the purpose of
13implementing these measures. A utility shall not be required to
14advance any moneys to the Department but only to forward such
15funds as it has collected. The Department shall report to the
16Commission on an annual basis regarding the costs actually
17incurred by the Department in the implementation of the
18measures. Any changes to the costs of energy efficiency
19measures as a result of plan modifications shall be
20appropriately reflected in amounts recovered by the utility and
21turned over to the Department.
22    The portfolio of measures, administered by both the
23utilities and the Department, shall, in combination, be
24designed to achieve the annual energy savings requirements set
25forth in subsection (c) of this Section, as modified by
26subsection (d) of this Section.

 

 

09800SB1603ham001- 87 -LRB098 08881 HLH 45847 a

1    The utility and the Department shall agree upon a
2reasonable portfolio of measures and determine the measurable
3corresponding percentage of the savings goals associated with
4measures implemented by the Department.
5    No utility shall be assessed a penalty under subsection (f)
6of this Section for failure to make a timely filing if that
7failure is the result of a lack of agreement with the
8Department with respect to the allocation of responsibilities
9or related costs or target assignments. In that case, the
10Department and the utility shall file their respective plans
11with the Commission and the Commission shall determine an
12appropriate division of measures and programs that meets the
13requirements of this Section.
14    If the Department is unable to meet performance
15requirements for the portion of the portfolio implemented by
16the Department, then the utility and the Department shall
17jointly submit a modified filing to the Commission explaining
18the performance shortfall and recommending an appropriate
19course going forward, including any program modifications that
20may be appropriate in light of the evaluations conducted under
21item (8) of subsection (f) of this Section. In this case, the
22utility obligation to collect the Department's costs and turn
23over those funds to the Department under this subsection (e)
24shall continue only if the Commission approves the
25modifications to the plan proposed by the Department.
26    (f) No later than October 1, 2010, each gas utility shall

 

 

09800SB1603ham001- 88 -LRB098 08881 HLH 45847 a

1file an energy efficiency plan with the Commission to meet the
2energy efficiency standards through May 31, 2014. Every 3 years
3thereafter, each utility shall file, no later than October 1,
4an energy efficiency plan with the Commission. If a utility
5does not file such a plan by October 1 of the applicable year,
6then it shall face a penalty of $100,000 per day until the plan
7is filed. Each utility's plan shall set forth the utility's
8proposals to meet the utility's portion of the energy
9efficiency standards identified in subsection (c) of this
10Section, as modified by subsection (d) of this Section, taking
11into account the unique circumstances of the utility's service
12territory. The Commission shall seek public comment on the
13utility's plan and shall issue an order approving or
14disapproving each plan. If the Commission disapproves a plan,
15the Commission shall, within 30 days, describe in detail the
16reasons for the disapproval and describe a path by which the
17utility may file a revised draft of the plan to address the
18Commission's concerns satisfactorily. If the utility does not
19refile with the Commission within 60 days after the
20disapproval, the utility shall be subject to penalties at a
21rate of $100,000 per day until the plan is filed. This process
22shall continue, and penalties shall accrue, until the utility
23has successfully filed a portfolio of energy efficiency
24measures. Penalties shall be deposited into the Energy
25Efficiency Trust Fund and the cost of any such penalties may
26not be recovered from ratepayers. In submitting proposed energy

 

 

09800SB1603ham001- 89 -LRB098 08881 HLH 45847 a

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

 

 

09800SB1603ham001- 90 -LRB098 08881 HLH 45847 a

1        (6) Demonstrate that a gas utility affiliated with an
2    electric utility that is required to comply with Section
3    8-103 of this Act has integrated gas and electric
4    efficiency measures into a single program that reduces
5    program or participant costs and appropriately allocates
6    costs to gas and electric ratepayers. The Department shall
7    integrate all gas and electric programs it delivers in any
8    such utilities' service territories, unless the Department
9    can show that integration is not feasible or appropriate.
10        (7) Include a proposed cost recovery tariff mechanism
11    to fund the proposed energy efficiency measures and to
12    ensure the recovery of the prudently and reasonably
13    incurred costs of Commission-approved programs.
14        (8) Provide for quarterly status reports tracking
15    implementation of and expenditures for the utility's
16    portfolio of measures and the Department's portfolio of
17    measures, an annual independent review, and a full
18    independent evaluation of the 3-year results of the
19    performance and the cost-effectiveness of the utility's
20    and Department's portfolios of measures and broader net
21    program impacts and, to the extent practical, for
22    adjustment of the measures on a going forward basis as a
23    result of the evaluations. The resources dedicated to
24    evaluation shall not exceed 3% of portfolio resources in
25    any given 3-year period.
26    (g) No more than 3% of expenditures on energy efficiency

 

 

09800SB1603ham001- 91 -LRB098 08881 HLH 45847 a

1measures may be allocated for demonstration of breakthrough
2equipment and devices.
3    (h) Illinois natural gas utilities that are affiliated by
4virtue of a common parent company may, at the utilities'
5request, be considered a single natural gas utility for
6purposes of complying with this Section.
7    (i) If, after 3 years, a gas utility fails to meet the
8efficiency standard specified in subsection (c) of this Section
9as modified by subsection (d), then it shall make a
10contribution to the Low-Income Home Energy Assistance Program.
11The total liability for failure to meet the goal shall be
12assessed as follows:
13        (1) a large gas utility shall pay $600,000;
14        (2) a medium gas utility shall pay $400,000; and
15        (3) a small gas utility shall pay $200,000.
16    For purposes of this Section, (i) a "large gas utility" is
17a gas utility that on December 31, 2008, served more than
181,500,000 gas customers in Illinois; (ii) a "medium gas
19utility" is a gas utility that on December 31, 2008, served
20fewer than 1,500,000, but more than 500,000 gas customers in
21Illinois; and (iii) a "small gas utility" is a gas utility that
22on December 31, 2008, served fewer than 500,000 and more than
23100,000 gas customers in Illinois. The costs of this
24contribution may not be recovered from ratepayers.
25    If a gas utility fails to meet the efficiency standard
26specified in subsection (c) of this Section, as modified by

 

 

09800SB1603ham001- 92 -LRB098 08881 HLH 45847 a

1subsection (d) of this Section, in any 2 consecutive 3-year
2planning periods, then the responsibility for implementing the
3utility's energy efficiency measures shall be transferred to an
4independent program administrator selected by the Commission.
5Reasonable and prudent costs incurred by the independent
6program administrator to meet the efficiency standard
7specified in subsection (c) of this Section, as modified by
8subsection (d) of this Section, may be recovered from the
9customers of the affected gas utilities, other than customers
10described in subsection (m) of this Section. The utility shall
11provide the independent program administrator with all
12information and assistance necessary to perform the program
13administrator's duties including but not limited to customer,
14account, and energy usage data, and shall allow the program
15administrator to include inserts in customer bills. The utility
16may recover reasonable costs associated with any such
17assistance.
18    (j) No utility shall be deemed to have failed to meet the
19energy efficiency standards to the extent any such failure is
20due to a failure of the Department.
21    (k) Not later than January 1, 2012, the Commission shall
22develop and solicit public comment on a plan to foster
23statewide coordination and consistency between statutorily
24mandated natural gas and electric energy efficiency programs to
25reduce program or participant costs or to improve program
26performance. Not later than September 1, 2013, the Commission

 

 

09800SB1603ham001- 93 -LRB098 08881 HLH 45847 a

1shall issue a report to the General Assembly containing its
2findings and recommendations.
3    (l) This Section does not apply to a gas utility that on
4January 1, 2009, provided gas service to fewer than 100,000
5customers in Illinois.
6    (m) Subsections (a) through (k) of this Section do not
7apply to customers of a natural gas utility that have a North
8American Industry Classification System code number that is
922111 or any such code number beginning with the digits 31, 32,
10or 33 and (i) annual usage in the aggregate of 4 million therms
11or more within the service territory of the affected gas
12utility or with aggregate usage of 8 million therms or more in
13this State and complying with the provisions of item (l) of
14this subsection (m); or (ii) using natural gas as feedstock and
15meeting the usage requirements described in item (i) of this
16subsection (m), to the extent such annual feedstock usage is
17greater than 60% of the customer's total annual usage of
18natural gas.
19        (1) Customers described in this subsection (m) of this
20    Section shall apply, on a form approved on or before
21    October 1, 2009 by the Department, to the Department to be
22    designated as a self-directing customer ("SDC") or as an
23    exempt customer using natural gas as a feedstock from which
24    other products are made, including, but not limited to,
25    feedstock for a hydrogen plant, on or before the 1st day of
26    February, 2010. Thereafter, application may be made not

 

 

09800SB1603ham001- 94 -LRB098 08881 HLH 45847 a

1    less than 6 months before the filing date of the gas
2    utility energy efficiency plan described in subsection (f)
3    of this Section; however, a new customer that commences
4    taking service from a natural gas utility after February 1,
5    2010 may apply to become a SDC or exempt customer up to 30
6    days after beginning service. Such application shall
7    contain the following:
8            (A) the customer's certification that, at the time
9        of its application, it qualifies to be a SDC or exempt
10        customer described in this subsection (m) of this
11        Section;
12            (B) in the case of a SDC, the customer's
13        certification that it has established or will
14        establish by the beginning of the utility's 3-year
15        planning period commencing subsequent to the
16        application, and will maintain for accounting
17        purposes, an energy efficiency reserve account and
18        that the customer will accrue funds in said account to
19        be held for the purpose of funding, in whole or in
20        part, energy efficiency measures of the customer's
21        choosing, which may include, but are not limited to,
22        projects involving combined heat and power systems
23        that use the same energy source both for the generation
24        of electrical or mechanical power and the production of
25        steam or another form of useful thermal energy or the
26        use of combustible gas produced from biomass, or both;

 

 

09800SB1603ham001- 95 -LRB098 08881 HLH 45847 a

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

 

 

09800SB1603ham001- 96 -LRB098 08881 HLH 45847 a

1        reserve account; an estimate of the energy saved, or to
2        be saved, by the measure; and that the report shall
3        include a verification by an officer or plant manager
4        of the customer or by a registered professional
5        engineer or certified energy efficiency trade
6        professional that the funds withdrawn from the reserve
7        account were used for the energy efficiency measures;
8            (F) in the case of an exempt customer, the
9        customer's certification of the level of gas usage as
10        feedstock in the customer's operation in a typical year
11        and that it will provide information establishing this
12        level, upon request of the Department;
13            (G) in the case of either an exempt customer or a
14        SDC, the customer's certification that it has provided
15        the gas utility or utilities serving the customer with
16        a copy of the application as filed with the Department;
17            (H) in the case of either an exempt customer or a
18        SDC, certification of the natural gas utility or
19        utilities serving the customer in Illinois including
20        the natural gas utility accounts that are the subject
21        of the application; and
22            (I) in the case of either an exempt customer or a
23        SDC, a verification signed by a plant manager or an
24        authorized corporate officer attesting to the
25        truthfulness and accuracy of the information contained
26        in the application.

 

 

09800SB1603ham001- 97 -LRB098 08881 HLH 45847 a

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

 

 

09800SB1603ham001- 98 -LRB098 08881 HLH 45847 a

1    Department shall notify the customer in writing of the
2    noncompliance. The customer shall have 30 days to establish
3    its compliance, and failing to do so, may have its status
4    as a SDC or exempt customer revoked by the Department. The
5    Department shall treat all information provided by any
6    customer seeking SDC status or exemption from the
7    provisions of this Section as strictly confidential.
8        (4) Upon request, or on its own motion, the Commission
9    may open an investigation, no more than once every 3 years
10    and not before October 1, 2014, to evaluate the
11    effectiveness of the self-directing program described in
12    this subsection (m).
13    (n) The applicability of this Section to customers
14described in subsection (m) of this Section is conditioned on
15the existence of the SDC program. In no event will any
16provision of this Section apply to such customers after January
171, 2020.
18(Source: P.A. 96-33, eff. 7-10-09; 97-813, eff. 7-13-12;
1997-841, eff. 7-20-12.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.".