Full Text of SB2169 97th General Assembly
SB2169ham001 97TH GENERAL ASSEMBLY | Rep. Dan Reitz Filed: 5/20/2011
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| 1 | | AMENDMENT TO SENATE BILL 2169
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2169 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Power Agency Act is amended by | 5 | | changing 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 | 10 | | which the Illinois Finance Authority agrees to loan the | 11 | | proceeds of revenue bonds issued with respect to a project to | 12 | | the Agency upon terms providing for loan repayment installments | 13 | | at least sufficient to pay when due all principal of, interest | 14 | | and premium, if any, on those revenue bonds, and providing for | 15 | | maintenance, insurance, and other matters in respect of the | 16 | | project. |
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| 1 | | "Authority" means the Illinois Finance Authority. | 2 | | "Clean coal facility" means an electric generating | 3 | | facility that uses primarily coal as a feedstock and that | 4 | | captures and sequesters carbon dioxide emissions at the | 5 | | following levels: at least 50% of the total carbon dioxide | 6 | | emissions that the facility would otherwise emit if, at the | 7 | | time construction commences, the facility is scheduled to | 8 | | commence operation before 2016, at least 70% of the total | 9 | | carbon dioxide emissions that the facility would otherwise emit | 10 | | if, at the time construction commences, the facility is | 11 | | scheduled to commence operation during 2016 or 2017, and at | 12 | | least 90% of the total carbon dioxide emissions that the | 13 | | facility would otherwise emit if, at the time construction | 14 | | commences, the facility is scheduled to commence operation | 15 | | after 2017. The power block of the clean coal facility shall | 16 | | not exceed allowable emission rates for sulfur dioxide, | 17 | | nitrogen oxides, carbon monoxide, particulates and mercury for | 18 | | a natural gas-fired combined-cycle facility the same size as | 19 | | and in the same location as the clean coal facility at the time | 20 | | the clean coal facility obtains an approved air permit. All | 21 | | coal used by a clean coal facility shall have high volatile | 22 | | bituminous rank and greater than 1.7 pounds of sulfur per | 23 | | million btu content, unless the clean coal facility does not | 24 | | use gasification technology and was operating as a conventional | 25 | | coal-fired electric generating facility on June 1, 2009 (the | 26 | | effective date of Public Act 95-1027). |
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| 1 | | "Clean coal SNG facility" means a facility that uses a | 2 | | gasification process to produce substitute natural gas, that | 3 | | sequesters at least 90% of the total carbon emissions that the | 4 | | facility would otherwise emit , and that uses at least 90% | 5 | | petroleum coke or coal as a feedstock, with all such coal | 6 | | having a high bituminous rank and greater than 1.7 pounds of | 7 | | sulfur per million btu content , and that has a valid and | 8 | | effective permit to construct emission sources and air | 9 | | pollution control equipment and approval with respect to the | 10 | | federal regulations for Prevention of Significant | 11 | | Deterioration of Air Quality (PSD) for the plant pursuant to | 12 | | the federal Clean Air Act . | 13 | | "Commission" means the Illinois Commerce Commission. | 14 | | "Costs incurred in connection with the development and | 15 | | construction of a facility" means: | 16 | | (1) the cost of acquisition of all real property , | 17 | | fixtures, and improvements in connection therewith and | 18 | | equipment , personal property, and other property, rights, | 19 | | and easements acquired that are deemed necessary for the | 20 | | operation and maintenance of the facility; | 21 | | (2) financing costs with respect to bonds, notes, and | 22 | | other evidences of indebtedness of the Agency; | 23 | | (3) all origination, commitment, utilization, | 24 | | facility, placement, underwriting, syndication, credit | 25 | | enhancement, and rating agency fees; | 26 | | (4) engineering, design, procurement, consulting, |
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| 1 | | legal, accounting, title insurance, survey, appraisal, | 2 | | escrow, trustee, collateral agency, interest rate hedging, | 3 | | interest rate swap, capitalized interest , contingency, as | 4 | | required by lenders, and other financing costs, and other | 5 | | expenses for professional services; and | 6 | | (5) the costs of plans, specifications, site study and | 7 | | investigation, installation, surveys, other Agency costs | 8 | | and estimates of costs, and other expenses necessary or | 9 | | incidental to determining the feasibility of any project, | 10 | | together with such other expenses as may be necessary or | 11 | | incidental to the financing, insuring, acquisition, and | 12 | | construction of a specific project and starting up, | 13 | | commissioning, and placing that project in operation. | 14 | | "Department" means the Department of Commerce and Economic | 15 | | Opportunity. | 16 | | "Director" means the Director of the Illinois Power Agency. | 17 | | "Demand-response" means measures that decrease peak | 18 | | electricity demand or shift demand from peak to off-peak | 19 | | periods. | 20 | | "Energy efficiency" means measures that reduce the amount | 21 | | of electricity or natural gas required to achieve a given end | 22 | | use. | 23 | | "Electric utility" has the same definition as found in | 24 | | Section 16-102 of the Public Utilities Act. | 25 | | "Facility" means an electric generating unit or a | 26 | | co-generating unit that produces electricity along with |
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| 1 | | related equipment necessary to connect the facility to an | 2 | | electric transmission or distribution system. | 3 | | "Governmental aggregator" means one or more units of local | 4 | | government that individually or collectively procure | 5 | | electricity to serve residential retail electrical loads | 6 | | located within its or their jurisdiction. | 7 | | "Local government" means a unit of local government as | 8 | | defined in Article VII of Section 1 of the Illinois | 9 | | Constitution. | 10 | | "Municipality" means a city, village, or incorporated | 11 | | town. | 12 | | "Person" means any natural person, firm, partnership, | 13 | | corporation, either domestic or foreign, company, association, | 14 | | limited liability company, joint stock company, or association | 15 | | and includes any trustee, receiver, assignee, or personal | 16 | | representative thereof. | 17 | | "Project" means the planning, bidding, and construction of | 18 | | a facility. | 19 | | "Public utility" has the same definition as found in | 20 | | Section 3-105 of the Public Utilities Act. | 21 | | "Real property" means any interest in land together with | 22 | | all structures, fixtures, and improvements thereon, including | 23 | | lands under water and riparian rights, any easements, | 24 | | covenants, licenses, leases, rights-of-way, uses, and other | 25 | | interests, together with any liens, judgments, mortgages, or | 26 | | other claims or security interests related to real property. |
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| 1 | | "Renewable energy credit" means a tradable credit that | 2 | | represents the environmental attributes of a certain amount of | 3 | | energy produced from a renewable energy resource. | 4 | | "Renewable energy resources" includes energy and its | 5 | | associated renewable energy credit or renewable energy credits | 6 | | from wind, solar thermal energy, photovoltaic cells and panels, | 7 | | biodiesel, crops and untreated and unadulterated organic waste | 8 | | biomass, tree waste, hydropower that does not involve new | 9 | | construction or significant expansion of hydropower dams, and | 10 | | other alternative sources of environmentally preferable | 11 | | energy. For purposes of this Act, landfill gas produced in the | 12 | | State is considered a renewable energy resource. "Renewable | 13 | | energy resources" does not include the incineration or burning | 14 | | of tires, garbage, general household, institutional, and | 15 | | commercial waste, industrial lunchroom or office waste, | 16 | | landscape waste other than tree waste, railroad crossties, | 17 | | utility poles, or construction or demolition debris, other than | 18 | | untreated and unadulterated waste wood. | 19 | | "Revenue bond" means any bond, note, or other evidence of | 20 | | indebtedness issued by the Authority, the principal and | 21 | | interest of which is payable solely from revenues or income | 22 | | derived from any project or activity of the Agency. | 23 | | "Sequester" means permanent storage of carbon dioxide by | 24 | | injecting it into a saline aquifer, a depleted gas reservoir, | 25 | | or an oil reservoir, directly or through an enhanced oil | 26 | | recovery process that may involve intermediate storage , |
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| 1 | | regardless of whether these activities are conducted by a clean | 2 | | coal facility, a clean coal SNG facility, or a party with which | 3 | | a clean coal facility or clean coal SNG facility has contracted | 4 | | for such purposes in a salt dome . | 5 | | "Servicing agreement" means (i) in the case of an electric | 6 | | utility, an agreement between the owner of a clean coal | 7 | | facility and such electric utility, which agreement shall have | 8 | | terms and conditions meeting the requirements of paragraph (3) | 9 | | of subsection (d) of Section 1-75, and (ii) in the case of an | 10 | | alternative retail electric supplier, an agreement between the | 11 | | owner of a clean coal facility and such alternative retail | 12 | | electric supplier, which agreement shall have terms and | 13 | | conditions meeting the requirements of Section 16-115(d)(5) of | 14 | | the Public Utilities Act. | 15 | | "Substitute natural gas" or "SNG" means a gas manufactured | 16 | | by gasification of hydrocarbon feedstock, which is | 17 | | substantially interchangeable in use and distribution with | 18 | | conventional natural gas. | 19 | | "Total resource cost test" or "TRC test" means a standard | 20 | | that is met if, for an investment in energy efficiency or | 21 | | demand-response measures, the benefit-cost ratio is greater | 22 | | than one. The benefit-cost ratio is the ratio of the net | 23 | | present value of the total benefits of the program to the net | 24 | | present value of the total costs as calculated over the | 25 | | lifetime of the measures. A total resource cost test compares | 26 | | the sum of avoided electric utility costs, representing the |
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| 1 | | benefits that accrue to the system and the participant in the | 2 | | delivery of those efficiency measures, as well as other | 3 | | quantifiable societal benefits, including avoided natural gas | 4 | | utility costs, to the sum of all incremental costs of end-use | 5 | | measures that are implemented due to the program (including | 6 | | both utility and participant contributions), plus costs to | 7 | | administer, deliver, and evaluate each demand-side program, to | 8 | | quantify the net savings obtained by substituting the | 9 | | demand-side program for supply resources. In calculating | 10 | | avoided costs of power and energy that an electric utility | 11 | | would otherwise have had to acquire, reasonable estimates shall | 12 | | be included of financial costs likely to be imposed by future | 13 | | regulations and legislation on emissions of greenhouse gases.
| 14 | | (Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09; | 15 | | 95-1027, eff. 6-1-09; 96-33, eff. 7-10-09; 96-159, eff. | 16 | | 8-10-09; 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10.)
| 17 | | Section 10. The Illinois Procurement Code is amended by | 18 | | changing Section 1-10 as follows:
| 19 | | (30 ILCS 500/1-10)
| 20 | | Sec. 1-10. Application.
| 21 | | (a) This Code applies only to procurements for which | 22 | | contractors were first
solicited on or after July 1, 1998. This | 23 | | Code shall not be construed to affect
or impair any contract, | 24 | | or any provision of a contract, entered into based on a
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| 1 | | solicitation prior to the implementation date of this Code as | 2 | | described in
Article 99, including but not limited to any | 3 | | covenant entered into with respect
to any revenue bonds or | 4 | | similar instruments.
All procurements for which contracts are | 5 | | solicited between the effective date
of Articles 50 and 99 and | 6 | | July 1, 1998 shall be substantially in accordance
with this | 7 | | Code and its intent.
| 8 | | (b) This Code shall apply regardless of the source of the | 9 | | funds with which
the contracts are paid, including federal | 10 | | assistance moneys.
This Code shall
not apply to:
| 11 | | (1) Contracts between the State and its political | 12 | | subdivisions or other
governments, or between State | 13 | | governmental bodies except as specifically
provided in | 14 | | this Code.
| 15 | | (2) Grants, except for the filing requirements of | 16 | | Section 20-80.
| 17 | | (3) Purchase of care.
| 18 | | (4) Hiring of an individual as employee and not as an | 19 | | independent
contractor, whether pursuant to an employment | 20 | | code or policy or by contract
directly with that | 21 | | individual.
| 22 | | (5) Collective bargaining contracts.
| 23 | | (6) Purchase of real estate, except that notice of this | 24 | | type of contract with a value of more than $25,000 must be | 25 | | published in the Procurement Bulletin within 7 days after | 26 | | the deed is recorded in the county of jurisdiction. The |
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| 1 | | notice shall identify the real estate purchased, the names | 2 | | of all parties to the contract, the value of the contract, | 3 | | and the effective date of the contract.
| 4 | | (7) Contracts necessary to prepare for anticipated | 5 | | litigation, enforcement
actions, or investigations, | 6 | | provided
that the chief legal counsel to the Governor shall | 7 | | give his or her prior
approval when the procuring agency is | 8 | | one subject to the jurisdiction of the
Governor, and | 9 | | provided that the chief legal counsel of any other | 10 | | procuring
entity
subject to this Code shall give his or her | 11 | | prior approval when the procuring
entity is not one subject | 12 | | to the jurisdiction of the Governor.
| 13 | | (8) Contracts for
services to Northern Illinois | 14 | | University by a person, acting as
an independent | 15 | | contractor, who is qualified by education, experience, and
| 16 | | technical ability and is selected by negotiation for the | 17 | | purpose of providing
non-credit educational service | 18 | | activities or products by means of specialized
programs | 19 | | offered by the university.
| 20 | | (9) Procurement expenditures by the Illinois | 21 | | Conservation Foundation
when only private funds are used.
| 22 | | (10) Procurement expenditures by the Illinois Health | 23 | | Information Exchange Authority involving private funds | 24 | | from the Health Information Exchange Fund. "Private funds" | 25 | | means gifts, donations, and private grants. | 26 | | (c) This Code does not apply to the electric power |
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| 1 | | procurement process provided for under Section 1-75 of the | 2 | | Illinois Power Agency Act and Section 16-111.5 of the Public | 3 | | Utilities Act. | 4 | | (d) Except for Section 20-160 and Article 50 of this Code, | 5 | | and as expressly required by Section 9.1 of the Illinois | 6 | | Lottery Law, the provisions of this Code do not apply to the | 7 | | procurement process provided for under Section 9.1 of the | 8 | | Illinois Lottery Law. | 9 | | (e) This Code does not apply to the processes used by the | 10 | | Illinois Power Agency to retain a mediator to mediate contract | 11 | | disputes between gas utilities and the clean coal SNG facility | 12 | | and to retain an expert to assist in the review of contracts | 13 | | under subsection (h) of Section 9-220 of the Public Utilities | 14 | | Act. This Code does not apply to the process used by the | 15 | | Illinois Commerce Commission to retain an expert to assist in | 16 | | determining the actual incurred costs of the clean coal SNG | 17 | | facility and the reasonableness of those costs as required | 18 | | under subsection (h) of Section 9-220 of the Public Utilities | 19 | | Act. | 20 | | (Source: P.A. 95-481, eff. 8-28-07; 95-615, eff. 9-11-07; | 21 | | 95-876, eff. 8-21-08; 96-840, eff. 12-23-09; 96-1331, eff. | 22 | | 7-27-10.)
| 23 | | Section 15. The Public Utilities Act is amended by changing | 24 | | Sections 3-101 and 9-220 and by adding Sections 3-123, 3-124, | 25 | | 3-125, and 3-126 as follows:
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| 1 | | (220 ILCS 5/3-101) (from Ch. 111 2/3, par. 3-101)
| 2 | | Sec. 3-101. Definitions. Unless otherwise specified, the | 3 | | terms set forth
in Sections 3-102 through 3-126 3-121 are used | 4 | | in this Act as therein defined.
| 5 | | (Source: P.A. 84-617; 84-1118.)
| 6 | | (220 ILCS 5/3-123 new) | 7 | | Sec. 3-123. Clean coal facility; clean coal SNG facility; | 8 | | sequester; SNG facility; substitute natural gas or SNG. As used | 9 | | in this Act: | 10 | | "Clean coal facility" shall have the same meaning as | 11 | | provided in Section 1-10 of the Illinois Power Agency Act. | 12 | | "Clean coal SNG facility" shall have the same meaning as | 13 | | provided in Section 1-10 of the Illinois Power Agency Act. | 14 | | "Sequester" shall have the same meaning as provided in | 15 | | Section 1-10 of the Illinois Power Agency Act. | 16 | | "SNG facility" means a facility that produces substitute | 17 | | natural gas from feedstock that includes coal through a | 18 | | gasification process, including a clean coal facility, and the | 19 | | clean coal SNG facility described in subsection (h) of Section | 20 | | 9-220 of this Act. | 21 | | "Substitute natural gas" or "SNG" shall have the same | 22 | | meaning as provided in Section 1-10 of the Illinois Power | 23 | | Agency Act. |
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| 1 | | (220 ILCS 5/3-124 new) | 2 | | Sec. 3-124. Adjusted final capitalized plant cost. | 3 | | "Adjusted final capitalized plant cost" means the final | 4 | | capitalized plant cost reduced by the following, without | 5 | | duplication and to the extent not already accounted for or | 6 | | reflected on the books of the facility: (1) any State of | 7 | | Illinois financial assistance, (2) any U.S. financial | 8 | | assistance, and (3) any quantifiable benefit from a U.S. Clean | 9 | | Coal Gasification Program received by the facility during a | 10 | | period equal to the shorter of (A) the life of such program or | 11 | | (B) the term of the agreement, such quantifiable benefit to be | 12 | | discounted at a rate of 14% per annum over such period. | 13 | | (220 ILCS 5/3-125 new) | 14 | | Sec. 3-125. Final capitalized plant cost. "Final | 15 | | capitalized plant cost" means the total capitalized asset cost | 16 | | of the plant of the clean coal SNG facility as reflected on the | 17 | | balance sheet of the facility at the time of the commercial | 18 | | production date, with such capitalized cost to be accrued in | 19 | | accordance with generally accepted accounting principles, and | 20 | | includes, without limitation, the following items: major | 21 | | equipment, the SNG pipeline from the plant to the receiving | 22 | | pipeline, water lines, railroad improvements, access road | 23 | | improvements, all coal transportation assets, including the | 24 | | slurry line, slurry prep plant, carbon dioxide capture metering | 25 | | and compression, licensing fees, all costs incurred in the |
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| 1 | | management planning, oversight and execution of the | 2 | | construction and start-up of the plant, and all fees and costs | 3 | | payable under engineering, procurement, and design contracts | 4 | | for the construct of the plant accrued as of the time of the | 5 | | commercial production date, but does not include capitalized | 6 | | financing costs including capitalized interest during | 7 | | construction and all fees associated with financing, coal | 8 | | reserve leasing costs, marketing, training, any and all costs | 9 | | payable under the contract miner agreement, the cost of coal | 10 | | mining equipment and similar costs, and any other costs, | 11 | | including general and administrative costs, not reasonably | 12 | | incurred in connection with the design, construction, testing, | 13 | | start-up, or commissioning of the plant in preparation for | 14 | | commercial production date. | 15 | | (220 ILCS 5/3-126 new) | 16 | | Sec. 3-126. Total capitalized asset cost. "Total | 17 | | capitalized asset cost" means the gross book value of the | 18 | | plant, as determined in accordance with generally accepted | 19 | | accounting principles at the commercial production date. | 20 | | (220 ILCS 5/9-220) (from Ch. 111 2/3, par. 9-220) | 21 | | Sec. 9-220. Rate changes based on changes in fuel costs. | 22 | | (a) Notwithstanding the provisions of Section 9-201, the
| 23 | | Commission may authorize the increase or decrease of rates and | 24 | | charges
based upon changes in the cost of fuel used in the |
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| 1 | | generation or production
of electric power, changes in the cost | 2 | | of purchased power, or changes in
the cost of purchased gas | 3 | | through the application of fuel adjustment
clauses or purchased | 4 | | gas adjustment clauses. The Commission may also
authorize the | 5 | | increase or decrease of rates and charges based upon | 6 | | expenditures
or revenues resulting from the purchase or sale of | 7 | | emission allowances created
under the federal Clean Air Act | 8 | | Amendments of 1990,
through such fuel adjustment clauses, as a | 9 | | cost of fuel. For the purposes of
this paragraph, cost of fuel | 10 | | used in the generation or production of electric
power shall | 11 | | include the amount of any fees paid by the utility for the
| 12 | | implementation and operation of a process for the | 13 | | desulfurization of the
flue gas when burning high sulfur coal | 14 | | at any location within the State of
Illinois irrespective of | 15 | | the attainment status designation of such
location; but shall | 16 | | not include transportation costs
of coal
(i) except to the | 17 | | extent that for contracts entered into on
and after the | 18 | | effective date of this amendatory Act of 1997,
the cost of the | 19 | | coal, including transportation costs,
constitutes the lowest | 20 | | cost for adequate and reliable fuel
supply reasonably available | 21 | | to the public utility in
comparison to the cost, including | 22 | | transportation costs, of
other adequate and reliable sources of | 23 | | fuel supply reasonably
available to the public utility, or (ii)
| 24 | | except as otherwise provided in the next 3 sentences of this | 25 | | paragraph.
Such costs of fuel
shall, when requested by a | 26 | | utility or at the conclusion of the utility's
next general |
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| 1 | | electric rate proceeding, whichever shall first occur, include
| 2 | | transportation costs of coal purchased under existing coal | 3 | | purchase
contracts. For purposes of this paragraph "existing | 4 | | coal purchase
contracts" means contracts for the purchase of | 5 | | coal in effect on the
effective date of this amendatory Act of | 6 | | 1991, as such contracts may
thereafter be amended, but only to | 7 | | the extent that any such amendment does
not increase the | 8 | | aggregate quantity of coal to be purchased under such
contract.
| 9 | | Nothing herein shall authorize an electric utility
to recover | 10 | | through its fuel adjustment clause any amounts of
| 11 | | transportation costs of coal that were included in the revenue
| 12 | | requirement used to set base rates in its most recent general
| 13 | | rate proceeding.
Cost shall be based upon uniformly applied | 14 | | accounting
principles. Annually, the Commission shall initiate | 15 | | public hearings to
determine whether the clauses reflect actual | 16 | | costs of fuel, gas, power, or
coal transportation purchased to | 17 | | determine whether such purchases were
prudent, and to reconcile | 18 | | any amounts collected with the actual costs of
fuel, power, | 19 | | gas, or coal transportation prudently purchased. In each such
| 20 | | proceeding, the burden of proof shall be upon the utility to | 21 | | establish the
prudence of its cost of fuel, power, gas, or coal
| 22 | | transportation purchases
and costs.
The Commission shall
issue | 23 | | its final order in each such annual proceeding for an
electric | 24 | | utility by December 31 of the year immediately
following the | 25 | | year to which the proceeding pertains, provided,
that the | 26 | | Commission shall issue its final order with respect
to such |
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| 1 | | annual proceeding for the years 1996 and earlier by December | 2 | | 31, 1998. | 3 | | (b) A public utility providing electric service, other than | 4 | | a public utility
described in subsections (e) or (f) of this | 5 | | Section, may at
any time during the mandatory transition period | 6 | | file with the
Commission proposed tariff sheets that eliminate | 7 | | the public
utility's fuel adjustment clause and adjust the | 8 | | public
utility's base rate tariffs by the amount necessary for | 9 | | the
base fuel component of the base rates to recover the public
| 10 | | utility's average fuel and power supply costs per kilowatt-hour | 11 | | for the 2
most recent years for which the Commission
has issued | 12 | | final orders in annual proceedings pursuant to
subsection (a), | 13 | | where the average fuel and power supply costs
per kilowatt-hour | 14 | | shall be calculated as the sum of the public
utility's prudent | 15 | | and allowable fuel and power supply costs as
found by the | 16 | | Commission in the 2 proceedings divided by the
public utility's | 17 | | actual jurisdictional kilowatt-hour sales for
those 2 years. | 18 | | Notwithstanding any contrary or inconsistent
provisions in | 19 | | Section 9-201 of this Act, in subsection (a) of
this Section or | 20 | | in any rules or regulations promulgated by the
Commission | 21 | | pursuant to subsection (g) of this Section, the
Commission | 22 | | shall review and shall by order approve, or approve
as | 23 | | modified, the proposed tariff sheets within 60 days after
the | 24 | | date of the public utility's filing. The Commission may
modify | 25 | | the public utility's proposed tariff sheets only to the
extent | 26 | | the Commission finds necessary to achieve conformance
to the |
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| 1 | | requirements of this subsection (b). During the 5
years | 2 | | following the date of the Commission's order, but in any
event | 3 | | no earlier than January 1, 2007, a public utility whose
fuel | 4 | | adjustment clause has been eliminated pursuant to this
| 5 | | subsection shall not file proposed tariff sheets seeking, or
| 6 | | otherwise petition the Commission for, reinstatement of a fuel
| 7 | | adjustment clause. | 8 | | (c) Notwithstanding any contrary or inconsistent
| 9 | | provisions in Section 9-201 of this Act, in subsection (a) of
| 10 | | this Section or in any rules or regulations promulgated by the
| 11 | | Commission pursuant to subsection (g) of this Section, a
public | 12 | | utility providing electric service, other than a public utility
| 13 | | described
in subsection (e) or (f) of this Section, may at any | 14 | | time
during the mandatory transition period file with the
| 15 | | Commission proposed tariff sheets that establish the rate per
| 16 | | kilowatt-hour to be applied pursuant to the public utility's
| 17 | | fuel adjustment clause at the average value for such rate
| 18 | | during the preceding 24 months, provided that such average
rate | 19 | | results in a credit to customers' bills, without making
any | 20 | | revisions to the public utility's base rate tariffs. The
| 21 | | proposed tariff sheets shall establish the fuel adjustment
rate | 22 | | for a specific time period of at least 3 years but not
more | 23 | | than 5 years, provided that the terms and conditions for
any | 24 | | reinstatement earlier than 5 years shall be set forth in
the | 25 | | proposed tariff sheets and subject to modification or
approval | 26 | | by the Commission. The Commission shall review and
shall by |
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| 1 | | order approve the proposed tariff sheets if it finds
that the | 2 | | requirements of this subsection are met. The
Commission shall | 3 | | not conduct the annual hearings specified in the
last 3 | 4 | | sentences of subsection (a) of this Section for the
utility for | 5 | | the period that the factor established pursuant to
this | 6 | | subsection is in effect. | 7 | | (d) A public utility providing electric service, or a | 8 | | public utility
providing gas service
may file with the | 9 | | Commission proposed tariff sheets that
eliminate the public | 10 | | utility's fuel or purchased gas
adjustment clause and adjust | 11 | | the public utility's base rate
tariffs to provide for recovery | 12 | | of power supply costs or gas
supply costs that would have been | 13 | | recovered through such
clause; provided, that the provisions of | 14 | | this subsection (d) shall not be
available to a public utility | 15 | | described in subsections (e) or (f) of this
Section to | 16 | | eliminate its fuel adjustment clause. Notwithstanding any | 17 | | contrary
or inconsistent
provisions in Section 9-201 of this | 18 | | Act, in subsection (a) of
this Section, or in any rules or | 19 | | regulations promulgated by
the Commission pursuant to | 20 | | subsection (g) of this Section, the
Commission shall review and | 21 | | shall by order approve, or approve
as modified in the | 22 | | Commission's order, the proposed tariff
sheets within 240 days | 23 | | after the date of the public utility's
filing. The Commission's | 24 | | order shall approve rates and
charges that the Commission, | 25 | | based on information in the
public utility's filing or on the | 26 | | record if a hearing is held
by the Commission, finds will |
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| 1 | | recover the reasonable, prudent
and necessary jurisdictional | 2 | | power supply costs or gas supply
costs incurred or to be | 3 | | incurred by the public utility during
a 12 month period found | 4 | | by the Commission to be appropriate
for these purposes, | 5 | | provided, that such period shall be either
(i) a 12 month | 6 | | historical period occurring during the 15
months ending on the | 7 | | date of the public utility's filing, or
(ii) a 12 month future | 8 | | period ending no later than 15 months
following the date of the | 9 | | public utility's filing. The public
utility shall include with | 10 | | its tariff filing information
showing both (1) its actual | 11 | | jurisdictional power supply costs
or gas supply costs for a 12 | 12 | | month historical period
conforming to (i) above and (2) its | 13 | | projected jurisdictional
power supply costs or gas supply costs | 14 | | for a future 12 month
period conforming to (ii) above. If the | 15 | | Commission's order
requires modifications in the tariff sheets | 16 | | filed by the
public utility, the public utility shall have 7 | 17 | | days following
the date of the order to notify the Commission | 18 | | whether the
public utility will implement the modified tariffs | 19 | | or elect to
continue its fuel or purchased gas adjustment | 20 | | clause in force
as though no order had been entered. The | 21 | | Commission's order
shall provide for any reconciliation of | 22 | | power supply costs or
gas supply costs, as the case may be, and | 23 | | associated revenues
through the date that the public utility's | 24 | | fuel or purchased
gas adjustment clause is eliminated. During | 25 | | the 5 years
following the date of the Commission's order, a | 26 | | public utility
whose fuel or purchased gas adjustment clause |
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| 1 | | has been
eliminated pursuant to this subsection shall not file | 2 | | proposed
tariff sheets seeking, or otherwise petition the | 3 | | Commission
for, reinstatement or adoption of a fuel or | 4 | | purchased gas
adjustment clause. Nothing in this subsection (d) | 5 | | shall be
construed as limiting the Commission's authority to | 6 | | eliminate
a public utility's fuel adjustment clause or | 7 | | purchased gas
adjustment clause in accordance with any other | 8 | | applicable
provisions of this Act. | 9 | | (e) Notwithstanding any contrary or inconsistent | 10 | | provisions in
Section 9-201 of this Act, in subsection (a) of | 11 | | this Section, or in
any rules promulgated by the Commission | 12 | | pursuant
to subsection (g) of this Section, a public utility | 13 | | providing
electric service to more than 1,000,000 customers in | 14 | | this State may, within the
first 6 months after the
effective | 15 | | date of this amendatory Act of 1997, file with the
Commission | 16 | | proposed tariff sheets that eliminate, effective
January 1, | 17 | | 1997, the public utility's fuel adjustment clause
without | 18 | | adjusting its base rates, and such tariff sheets shall be
| 19 | | effective upon filing. To the extent the application of the | 20 | | fuel
adjustment clause had resulted in net charges to customers | 21 | | after
January 1, 1997, the utility shall also file a tariff | 22 | | sheet that
provides for a refund stated on a per kilowatt-hour | 23 | | basis of such
charges over a period not to exceed 6 months; | 24 | | provided
however, that such refund shall not include the | 25 | | proportional
amounts of taxes paid under the Use Tax Act, | 26 | | Service Use Tax Act,
Service Occupation Tax Act, and Retailers' |
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| 1 | | Occupation Tax Act on
fuel used in generation. The Commission | 2 | | shall issue an order
within 45 days after the date of the | 3 | | public utility's filing
approving or approving as modified such | 4 | | tariff sheet. If the fuel
adjustment clause is eliminated | 5 | | pursuant to this subsection, the
Commission shall not conduct | 6 | | the annual hearings specified in the
last 3 sentences of | 7 | | subsection (a) of this Section for the
utility for any period | 8 | | after December 31, 1996 and prior to any
reinstatement of such | 9 | | clause. A public utility whose fuel
adjustment clause has been | 10 | | eliminated pursuant to this subsection
shall not file a | 11 | | proposed tariff sheet seeking, or otherwise
petition the | 12 | | Commission for, reinstatement of the fuel adjustment
clause | 13 | | prior to January 1, 2007. | 14 | | (f) Notwithstanding any contrary or inconsistent | 15 | | provisions in Section
9-201 of this Act, in subsection (a) of | 16 | | this Section, or in any rules or
regulations promulgated by the | 17 | | Commission pursuant to subsection (g) of this
Section, a public | 18 | | utility providing electric service to more than 500,000
| 19 | | customers but fewer than 1,000,000 customers in this State may, | 20 | | within the
first
6 months after the effective date of this | 21 | | amendatory Act of 1997, file with the
Commission proposed | 22 | | tariff sheets that eliminate, effective January 1, 1997,
the | 23 | | public utility's fuel adjustment clause and adjust its base | 24 | | rates by the
amount necessary for the base fuel component of | 25 | | the base rates to recover
91% of the public utility's average | 26 | | fuel and power supply costs for the 2 most
recent years for |
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| 1 | | which the Commission, as of January 1, 1997, has issued final
| 2 | | orders in annual proceedings pursuant to subsection (a), where | 3 | | the average fuel
and power supply costs per kilowatt-hour shall | 4 | | be calculated as the sum of the
public utility's prudent and | 5 | | allowable fuel and power supply costs as found by
the | 6 | | Commission in the 2 proceedings divided by the public utility's | 7 | | actual
jurisdictional kilowatt-hour sales for those 2 years, | 8 | | provided, that such
tariff sheets shall be effective upon | 9 | | filing. To the extent the application of
the fuel adjustment | 10 | | clause had resulted in net charges to customers after
January | 11 | | 1, 1997, the utility shall also file a tariff sheet that | 12 | | provides for a
refund stated on a per kilowatt-hour basis of | 13 | | such charges over a period not to
exceed 6 months. Provided | 14 | | however, that such refund shall not include the
proportional | 15 | | amounts of taxes paid under the Use Tax Act, Service Use Tax | 16 | | Act,
Service Occupation Tax Act, and Retailers' Occupation Tax | 17 | | Act on fuel used in
generation. The Commission shall issue an | 18 | | order within 45 days after the date
of the public utility's | 19 | | filing approving or approving as modified such tariff
sheet. If | 20 | | the fuel adjustment clause is eliminated pursuant to this
| 21 | | subsection, the Commission shall not conduct the annual | 22 | | hearings specified in
the last 3 sentences of subsection (a) of | 23 | | this Section for the utility for any
period after December 31, | 24 | | 1996 and prior to any reinstatement of such clause.
A public | 25 | | utility whose fuel adjustment clause has been eliminated | 26 | | pursuant to
this subsection shall not file a proposed tariff |
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| 1 | | sheet seeking, or otherwise
petition the Commission for, | 2 | | reinstatement of the fuel adjustment clause prior
to January 1, | 3 | | 2007. | 4 | | (g) The Commission shall have authority to promulgate rules | 5 | | and
regulations to
carry out the provisions of this Section. | 6 | | (h) Any Illinois gas utility may enter into a contract on | 7 | | or before March 31, 2011 for up to 10 years of supply with any | 8 | | company for the purchase of substitute natural gas (SNG) | 9 | | produced from coal through the gasification process if the | 10 | | company has commenced construction of a clean coal SNG | 11 | | gasification facility by July 1, 2012 in Jefferson County and | 12 | | commencement of construction shall mean that material physical | 13 | | site work has occurred, such as site clearing and excavation, | 14 | | water runoff prevention, water retention reservoir | 15 | | preparation, or foundation development. The contract shall | 16 | | contain the following provisions: (i) at least 90% of feedstock | 17 | | the only coal to be used in the gasification process shall be | 18 | | coal with a has high volatile bituminous rank and greater than | 19 | | 1.7 pounds of sulfur per million Btu content; (ii) at the time | 20 | | the contract term commences, the price per million Btu may not | 21 | | exceed $7.95 in 2008 dollars, adjusted annually based on the | 22 | | change in the Annual Consumer Price Index for All Urban | 23 | | Consumers for the Midwest Region as published in April by the | 24 | | United States Department of Labor, Bureau of Labor Statistics | 25 | | (or a suitable Consumer Price Index calculation if this | 26 | | Consumer Price Index is not available) for the previous |
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| 1 | | calendar year; provided that the price per million Btu shall | 2 | | not exceed $9.95 at any time during the contract; (iii) the | 3 | | utility's aggregate long-term supply contract contracts for | 4 | | the purchase of SNG does not exceed 15% 25% of the annual | 5 | | system supply requirements of the utility as of 2008 and the | 6 | | quantity of SNG supplied to a utility may not exceed 16 million | 7 | | MMBtus ; and (iv) the contract costs pursuant to subsection | 8 | | (h-10) of this Section shall not include any lobbying expenses, | 9 | | charitable contributions, advertising, organizational | 10 | | memberships, carbon dioxide pipeline or sequestration | 11 | | expenses, or marketing expenses per year . | 12 | | Any gas utility that is providing service to more than | 13 | | 150,000 customers on the effective date of this amendatory Act | 14 | | of the 97th General Assembly shall either elect to enter into a | 15 | | contract on or before September 30, 2011 for 10 years of SNG | 16 | | supply with the owner of a clean coal SNG facility or to file | 17 | | biennial rate proceedings before the Commission in the years | 18 | | 2012, 2014, and 2016, with such filings made after the | 19 | | effective date of this amendatory Act of the 97th General | 20 | | Assembly and no later than September 30 of the years 2012, | 21 | | 2014, and 2016 consistent with all requirements of 83 Ill. Adm. | 22 | | Code 255 and 285 as though the gas utility were filing for an | 23 | | increase in its rates, without regard to whether such filing | 24 | | would produce an increase, a decrease, or no change in the gas | 25 | | utility's rates, and the Commission shall review the gas | 26 | | utility's filing and shall issue its order in accordance with |
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| 1 | | the provisions of Section 9-201 of this Act. | 2 | | Within 7 days after the effective date of this amendatory | 3 | | Act of the 97th General Assembly, the owner of the clean coal | 4 | | SNG facility shall submit to the Illinois Power Agency and each | 5 | | gas utility that is providing service to more than 150,000 | 6 | | customers on the effective date of this amendatory Act of the | 7 | | 97th General Assembly a copy of a draft contract. Within 30 | 8 | | days after the receipt of the draft contract, each such gas | 9 | | utility shall provide the Illinois Power Agency and the owner | 10 | | of the clean coal SNG facility with its comments and | 11 | | recommended revisions to the draft contract. Within 7 days | 12 | | after the receipt of the gas utility's comments and recommended | 13 | | revisions, the owner of the facility shall submit its | 14 | | responsive comments and a further revised draft of the contract | 15 | | to the Illinois Power Agency. The Illinois Power Agency shall | 16 | | review the draft contract and comments. | 17 | | During its review of the draft contract, the Illinois Power | 18 | | Agency shall: | 19 | | (1) review and confirm in writing that the terms stated | 20 | | in this subsection (h) are incorporated in the SNG | 21 | | contract; | 22 | | (2) review the SNG pricing formula included in the | 23 | | contract and approve that formula if the Illinois Power | 24 | | Agency determines that the formula, at the time the | 25 | | contract term commences: (A) starts with a price of $6.50 | 26 | | per MMBtu adjusted by the adjusted final capitalized plant |
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| 1 | | cost; (B) takes into account budgeted miscellaneous net | 2 | | revenue after cost allowance, including sale of SNG | 3 | | produced by the clean coal SNG facility above the nameplate | 4 | | capacity of the facility and other by-products produced by | 5 | | the facility, as approved by the Illinois Power Agency; (C) | 6 | | does not include carbon dioxide transportation or | 7 | | sequestration expenses; and (D) includes all provisions | 8 | | required under this subsection (h); if the Illinois Power | 9 | | Agency does not approve of the SNG pricing formula, then | 10 | | the Illinois Power Agency shall modify the formula to | 11 | | ensure that it meets the requirements of this subsection | 12 | | (h); | 13 | | (3) review and approve the amount of budgeted | 14 | | miscellaneous net revenue after cost allowance, including | 15 | | sale of SNG produced by the clean coal SNG facility above | 16 | | the nameplate capacity of the facility and other | 17 | | by-products produced by the facility, to be included in the | 18 | | pricing formula; the Illinois Power Agency shall approve | 19 | | the amount of budgeted miscellaneous net revenue to be | 20 | | included in the pricing formula if it determines the | 21 | | budgeted amount to be reasonable and accurate; | 22 | | (4) review and confirm in writing that using the EIA | 23 | | Annual Energy Outlook-2011 Henry Hub Spot Price, the | 24 | | contract terms set out in subsection (h), the | 25 | | reconciliation account terms as set out in subsection | 26 | | (h-15), and an estimated inflation rate of 2.5%, that there |
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| 1 | | will be no cumulative estimated increase for residential | 2 | | customers; and | 3 | | (5) allocate the nameplate capacity of the clean coal | 4 | | SNG by total therms sold to ultimate customers by each gas | 5 | | utility in 2008; provided, however, no utility shall be | 6 | | required to purchase more than 42% of the projected annual | 7 | | output of the facility; additionally, the Illinois Power | 8 | | Agency shall further adjust the allocation only as required | 9 | | to take into account (A) adverse consolidation, | 10 | | derivative, or lease impacts to the balance sheet or income | 11 | | statement of any gas utility or (B) the physical capacity | 12 | | of the gas utility to accept SNG. | 13 | | If the parties to the contract do not agree on the terms | 14 | | therein, then the Illinois Power Agency shall retain an | 15 | | independent mediator to mediate the dispute between the | 16 | | parties. If the parties are in agreement on the terms of the | 17 | | contract, then the Illinois Power Agency shall approve the | 18 | | contract. If after mediation the parties have failed to come to | 19 | | agreement, then the Illinois Power Agency shall revise the | 20 | | draft contract as necessary to confirm that the contract | 21 | | contains only terms that are reasonable and equitable. The | 22 | | Illinois Power Agency may, in its discretion, retain an | 23 | | independent, qualified, and experienced expert to assist in its | 24 | | obligations under this subsection (h). The Illinois Power | 25 | | Agency shall adopt and make public policies detailing the | 26 | | processes for retaining a mediator and an expert under this |
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| 1 | | subsection (h). Any mediator or expert retained under this | 2 | | subsection (h) shall be retained no later than 60 days after | 3 | | the effective date of this amendatory Act of the 97th General | 4 | | Assembly. | 5 | | The Illinois Power Agency shall complete all of its | 6 | | responsibilities under this subsection (h) within 60 days after | 7 | | the effective date of this amendatory Act of the 97th General | 8 | | Assembly. The clean coal SNG facility shall pay a reasonable | 9 | | fee as required by the Illinois Power Agency for its services | 10 | | under this subsection (h) and shall pay the mediator's and | 11 | | expert's reasonable fees, if any. A gas utility and its | 12 | | customers shall have no obligation to reimburse the clean coal | 13 | | SNG facility or the Illinois Power Agency of any such costs. | 14 | | Within 30 days after commercial production of SNG has | 15 | | begun, the Commission shall initiate a review to determine | 16 | | whether the final capitalized plant cost of the clean coal SNG | 17 | | facility reflects actual incurred costs and whether the | 18 | | incurred costs were reasonable. In determining the actual | 19 | | incurred costs included in the final capitalized plant cost and | 20 | | the reasonableness of those costs, the Commission may in its | 21 | | discretion retain independent, qualified, and experienced | 22 | | experts to assist in its determination. The expert shall not | 23 | | own or control any direct or indirect interest in the clean | 24 | | coal SNG facility and shall have no contractual relationship | 25 | | with the clean coal SNG facility. If an expert is retained by | 26 | | the Commission, then the clean coal SNG facility shall pay the |
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| 1 | | expert's reasonable fees. The fees shall not be passed on to a | 2 | | utility or its customers. The Commission shall adopt and make | 3 | | public a policy detailing the process for retaining experts | 4 | | under this subsection (h). | 5 | | Within 30 days after completion of its review, the | 6 | | Commission shall initiate a formal proceeding on the final | 7 | | capitalized plant cost of the clean coal SNG facility at which | 8 | | comments and testimony may be submitted by any interested | 9 | | parties and the public. If the Commission finds that the final | 10 | | capitalized plant cost includes costs that were not actually | 11 | | incurred or costs that were unreasonably incurred, then the | 12 | | Commission shall disallow the amount of non-incurred or | 13 | | unreasonable costs from the SNG price under contracts entered | 14 | | into under this subsection (h). If the Commission disallows any | 15 | | costs, then the Commission shall adjust the SNG price using the | 16 | | price formula in the contract approved by the Illinois Power | 17 | | Agency under this subsection (h) to reflect the disallowed | 18 | | costs and shall enter an order specifying the revised price. In | 19 | | addition, the Commission's order shall direct the clean coal | 20 | | SNG facility to issue refunds of such sums as shall represent | 21 | | the difference between actual gross revenues and the gross | 22 | | revenue that would have been obtained based upon the same | 23 | | volume, from the price revised by the Commission. Any refund | 24 | | shall include interest calculated at a rate determined by the | 25 | | Commission and shall be returned according to procedures | 26 | | prescribed by the Commission. |
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| 1 | | Nothing in this subsection (h) shall preclude any party | 2 | | affected by a decision of the Commission under this subsection | 3 | | (h) from seeking judicial review of the Commission's decision. | 4 | | (h-5) All contracts entered into under subsection (h) of | 5 | | this Section, regardless of duration, shall require the owner | 6 | | of any facility supplying SNG under the contract to provide | 7 | | documentation to the Commission each year, starting in the | 8 | | facility's first year of commercial operation, accurately | 9 | | reporting the quantity of carbon dioxide emissions from the | 10 | | facility that have been captured and sequestered and reporting | 11 | | any quantities of carbon dioxide released from the site or | 12 | | sites at which carbon dioxide emissions were sequestered in | 13 | | prior years, based on continuous monitoring of those sites. | 14 | | If, in any year, the owner of the clean coal SNG facility | 15 | | fails to demonstrate that the SNG facility captured and | 16 | | sequestered at least 90% of the total carbon dioxide emissions | 17 | | that the facility would otherwise emit or that sequestration of | 18 | | emissions from prior years has failed, resulting in the release | 19 | | of carbon dioxide into the atmosphere, then the owner of the | 20 | | clean coal SNG facility must pay a penalty of $20 per ton of | 21 | | excess carbon dioxide emissions not to exceed $40,000,000, in | 22 | | any given year which shall be deposited into the Energy | 23 | | Efficiency Trust Fund and distributed pursuant to the | 24 | | subsection (b) of Section 6-6 of the Renewable Energy, Energy | 25 | | Efficiency, and Coal Resources Development Law of 1997. On or | 26 | | before the 5-year anniversary of the execution of the contract |
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| 1 | | and every 5 years thereafter, an expert hired by the owner of | 2 | | the facility with the approval the Attorney General shall | 3 | | conduct an analysis to determine the cost of sequestration of | 4 | | at least 90% of the total carbon dioxide emissions the plant | 5 | | would otherwise emit. If the analysis shows that the actual | 6 | | annual cost is greater than the penalty, then the penalty shall | 7 | | be increased to equal the actual cost. Provided, however, to | 8 | | the extent that the owner of the facility described in | 9 | | subsection (h) of this Act can demonstrate that the failure was | 10 | | as a result of acts of God (including fire, flood, earthquake, | 11 | | tornado, lightning, hurricane, or other natural disaster); any | 12 | | amendment, modification, or abrogation of any applicable law or | 13 | | regulation that would prevent performance; war; invasion; act | 14 | | of foreign enemies; hostilities (regardless of whether war is | 15 | | declared); civil war; rebellion; revolution; insurrection; | 16 | | military or usurped power or confiscation; terrorist | 17 | | activities; civil disturbance; riots; nationalization; | 18 | | sabotage; blockage; or embargo, the owner of the facility | 19 | | described in subsection (h) of this Act shall not be subject to | 20 | | a penalty if and only if (i) it promptly provides notice of its | 21 | | failure to the Commission; (ii) as soon as practicable and | 22 | | consistent with any order or direction from the Commission, it | 23 | | submits to the Commission proposed modifications to its carbon | 24 | | capture and sequestration plan; and (iii) it carries out its | 25 | | proposed modifications in the manner and time directed by the | 26 | | Commission. |
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| 1 | | If the Commission finds that the facility has not satisfied | 2 | | each of these requirements, then the facility shall be subject | 3 | | to the penalty. If the owner of the clean coal SNG facility | 4 | | captured and sequestered more than 90% of the total carbon | 5 | | emissions that the facility would otherwise emit, then the | 6 | | owner of the facility may credit such additional amounts to | 7 | | reduce the amount of any future penalty to be paid. The penalty | 8 | | resulting from the failure to capture and sequester at least | 9 | | the minimum amount of carbon dioxide shall not be passed on to | 10 | | a utility or its customers. | 11 | | If the clean coal SNG facility fails to meet the | 12 | | requirements specified in this subsection (h-5), then the | 13 | | Attorney General, on behalf of the People of the State of | 14 | | Illinois, shall bring an action for specific performance of the | 15 | | obligations related to the facility set forth in this | 16 | | subsection (h-5), including any penalty payments owed, but not | 17 | | including the physical obligation to capture and sequester at | 18 | | lest 90% of the total carbon emissions that the facility would | 19 | | otherwise emit. Such action may be filed in any circuit court | 20 | | in Illinois. By entering into a contract pursuant to subsection | 21 | | (h) of this Section, the clean coal SNG facility agrees to | 22 | | waive any objections to venue or to the jurisdiction of the | 23 | | court with regard to the Attorney General's action for specific | 24 | | performance under this subsection (h-5). | 25 | | Compliance with the sequestration requirements and any | 26 | | penalty requirements specified in this subsection (h-5) for the |
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| 1 | | clean coal SNG facility shall be assessed annually by the | 2 | | Commission, which may in its discretion retain an expert to | 3 | | facilitate its assessment. If any expert is retained by the | 4 | | Commission, then the clean coal SNG facility shall pay for the | 5 | | expert's reasonable fees, and such costs shall not be passed | 6 | | through to the utility or its customers. | 7 | | In addition, carbon dioxide emission credits received by | 8 | | the clean coal SNG facility in connection with sequestration of | 9 | | carbon dioxide from the facility must be sold in a timely | 10 | | fashion with any revenue, less applicable fees and expenses and | 11 | | any expenses required to be paid by facility for carbon dioxide | 12 | | transportation or sequestration, deposited into the | 13 | | reconciliation account within 30 days after receipt of such | 14 | | funds by the owner of the clean coal SNG facility. | 15 | | The clean coal SNG facility is prohibited from transporting | 16 | | or sequestering carbon dioxide unless the owner of the carbon | 17 | | dioxide pipeline that transfers the carbon dioxide from the | 18 | | facility and the owner of the sequestration site where the | 19 | | carbon dioxide captured by the facility is stored has acquired | 20 | | all applicable permits under applicable State and federal laws, | 21 | | statutes, rules, or regulations prior to the transfer or | 22 | | sequestration of carbon dioxide. The responsibility for | 23 | | compliance with the sequestration requirements specified in | 24 | | this subsection (h-5) for the clean coal SNG facility shall | 25 | | reside solely with the clean coal SNG facility, regardless of | 26 | | the whether the facility has contracted with another party to |
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| 1 | | capture, transport, or sequester carbon dioxide. | 2 | | (h-7) Sequestration permitting, oversight, and | 3 | | investigations. No clean coal facility may transport or | 4 | | sequester carbon dioxide unless the Commission approves the | 5 | | method of carbon dioxide transportation or sequestration. Such | 6 | | approval shall be required regardless of whether the facility | 7 | | has contracted with another to transport or sequester the | 8 | | carbon dioxide. Nothing in this subsection (h-7) shall release | 9 | | the owner or operator of a carbon dioxide sequestration site or | 10 | | carbon dioxide pipeline from any other permitting requirements | 11 | | under applicable State and federal laws, statutes, rules, or | 12 | | regulations. | 13 | | The Commission shall review carbon dioxide transportation | 14 | | and sequestration methods proposed by a clean coal facility and | 15 | | shall approve those methods it deems reasonable and | 16 | | cost-effective. For purposes of this review, "cost-effective" | 17 | | means a commercially reasonable price for similar carbon | 18 | | dioxide transportation or sequestration techniques. In | 19 | | determining whether sequestration is reasonable and | 20 | | cost-effective, the Commission may consult with the Illinois | 21 | | State Geological Survey and retain third parties to assist in | 22 | | its determination, provided that such third parties shall not | 23 | | own or control any direct or indirect interest in the facility | 24 | | that is proposing the carbon dioxide transportation or the | 25 | | carbon dioxide sequestration method and shall have no | 26 | | contractual relationship with that facility. If a third party |
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| 1 | | is retained by the Commission, then the facility proposing the | 2 | | carbon dioxide transportation or sequestration method shall | 3 | | pay for the expert's reasonable fees, and these costs shall not | 4 | | be passed through to a utility or its customers. | 5 | | No later than 6 months prior to the date upon which the | 6 | | owner intends to commence construction of a clean coal facility | 7 | | the owner of the facility shall file with the Commission a | 8 | | carbon dioxide transportation or sequestration plan. The | 9 | | Commission shall hold a public hearing within 30 days after | 10 | | receipt of the facility's carbon dioxide transportation or | 11 | | sequestration plan. The Commission shall post notice of the | 12 | | review on its website upon submission of a carbon dioxide | 13 | | transportation or sequestration method and shall accept | 14 | | written public comments. The Commission shall take the comments | 15 | | into account when making its decision. | 16 | | The Commission may not approve a carbon dioxide | 17 | | sequestration method if the owner or operator of the | 18 | | sequestration site has not received (i) an Underground | 19 | | Injection Control permit from the Illinois Environmental | 20 | | Protection Agency pursuant to the Environmental Protection | 21 | | Act; (ii) an Underground Injection Control permit from the | 22 | | Illinois Department of Natural Resources pursuant to the | 23 | | Illinois Oil and Gas Act; or (iii) a permit similar to items | 24 | | (i) or (ii) from the state in which the sequestration site is | 25 | | located if the sequestration will take place outside of | 26 | | Illinois. The Commission shall approve or deny the carbon |
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| 1 | | dioxide transportation or sequestration method within 90 days | 2 | | after the receipt of all required information. | 3 | | At least annually, the Illinois Environmental Protection | 4 | | Agency shall inspect all carbon dioxide sequestration sites in | 5 | | Illinois. The Illinois Environmental Protection Agency may, as | 6 | | often as deemed necessary, monitor and conduct investigations | 7 | | of those sites. The owner or operator of the sequestration site | 8 | | must cooperate with the Illinois Environmental Protection | 9 | | Agency investigations of carbon dioxide sequestration sites. | 10 | | If the Illinois Environmental Protection Agency determines | 11 | | at any time a site creates conditions that warrant the issuance | 12 | | of a seal order under Section 34 of the Environmental | 13 | | Protection Act, then the Illinois Environmental Protection | 14 | | Agency shall seal the site pursuant to the Environmental | 15 | | Protection Act. If the Illinois Environmental Protection | 16 | | Agency determines at any time a carbon dioxide sequestration | 17 | | site creates conditions that warrant the institution of a civil | 18 | | action for an injunction under Section 43 of the Environmental | 19 | | Protection Act, then the Illinois Environmental Protection | 20 | | Agency shall request the State's Attorney or the Attorney | 21 | | General institute such action. The Illinois Environmental | 22 | | Protection Agency shall provide notice of any such actions as | 23 | | soon as possible on its website. The facility shall incur all | 24 | | reasonable costs associated with any such inspection or | 25 | | monitoring of the sequestration sites, and these costs shall | 26 | | not be recoverable from utilities or their customers. |
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| 1 | | At least annually, the Commission shall inspect all carbon | 2 | | dioxide pipelines in Illinois that transport carbon dioxide to | 3 | | ensure the safety and feasibility of those pipelines. The | 4 | | Commission may, as often as deemed necessary, monitor and | 5 | | conduct investigations of those pipelines. The owner or | 6 | | operator of the pipeline must cooperate with the Commission | 7 | | investigations of the carbon dioxide pipelines. | 8 | | In circumstances whereby a carbon dioxide pipeline creates | 9 | | a substantial danger to the environment or to the public health | 10 | | of persons or to the welfare of persons where such danger is to | 11 | | the livelihood of such persons, the State's Attorney or | 12 | | Attorney General, upon the request of the Commission or on his | 13 | | or her own motion, may institute a civil action for an | 14 | | immediate injunction to halt any discharge or other activity | 15 | | causing or contributing to the danger or to require such other | 16 | | action as may be necessary. The court may issue an ex parte | 17 | | order and shall schedule a hearing on the matter not later than | 18 | | 3 working days after the date of injunction. The Commission | 19 | | shall provide notice of any such actions as soon as possible on | 20 | | its website. The SNG facility shall incur all reasonable costs | 21 | | associated with any such inspection or monitoring of the | 22 | | sequestration sites, and these costs shall not be recoverable | 23 | | from a utility or its customers. | 24 | | (h-5) The Attorney General, on behalf of the people of the | 25 | | State of Illinois, may specifically enforce the requirements of | 26 | | this subsection (h-5). All contracts, regardless of duration, |
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| 1 | | shall require the owner of any facility supplying SNG under the | 2 | | contract to provide documentation to the Commission each year, | 3 | | starting in the facility's first year of commercial operation, | 4 | | accurately reporting the quantity of carbon dioxide emissions | 5 | | from the facility that have been captured and sequestered and | 6 | | reporting any quantities of carbon dioxide released from the | 7 | | site or sites at which carbon dioxide emissions were | 8 | | sequestered in prior years, based on continuous monitoring of | 9 | | those sites. If, in any year, the owner of the facility fails | 10 | | to demonstrate that the SNG facility captured and sequestered | 11 | | at least 90% of the total carbon dioxide emissions that the | 12 | | facility would otherwise emit or that sequestration of | 13 | | emissions from prior years has failed, resulting in the release | 14 | | of carbon dioxide into the atmosphere, then the owner of the | 15 | | facility must offset excess emissions. Any such carbon dioxide | 16 | | offsets must be permanent, additional, verifiable, real, | 17 | | located within the State of Illinois, and legally and | 18 | | practicably enforceable; provided that the owner of the | 19 | | facility shall not be obligated to acquire carbon dioxide | 20 | | emission offsets to the extent that the cost of acquiring such | 21 | | offsets would exceed $40 million in any given year. No costs of | 22 | | any purchases of carbon offsets may be recovered from a utility | 23 | | or its customers. All carbon offsets purchased for this purpose | 24 | | must be permanently retired. In addition, carbon dioxide | 25 | | emission credits equivalent to 50% of the amount of credits | 26 | | associated with the required sequestration of carbon dioxide |
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| 1 | | from the facility must be permanently retired. Compliance with | 2 | | the sequestration requirements and the offset purchase | 3 | | requirements specified in this subsection (h-5) shall be | 4 | | assessed annually by an independent expert retained by the | 5 | | owner of the SNG facility, with the advance written approval of | 6 | | the Attorney General. A SNG facility operating pursuant to this | 7 | | subsection (h-5) shall not forfeit its designation as a clean | 8 | | coal SNG facility if the facility fails to fully comply with | 9 | | the applicable carbon sequestration requirements in any given | 10 | | year, provided the requisite offsets are purchased. | 11 | | (h-10) Contract costs for SNG incurred by an Illinois gas | 12 | | utility are reasonable and prudent and recoverable through the | 13 | | purchased gas adjustment clause and are not subject to review | 14 | | or disallowance by the Commission. Contract costs are costs | 15 | | incurred by the utility under the terms of a contract that | 16 | | incorporates the terms stated in subsection (h) of this Section | 17 | | as confirmed in writing by the Illinois Power Agency as set | 18 | | forth in subsection (h) (h-20) of this Section, which | 19 | | confirmation shall be deemed conclusive, or as a consequence of | 20 | | or condition to its performance under the contract, including | 21 | | (i) amounts paid for SNG under the SNG contract as adjusted for | 22 | | the clean coal SNG facility rider mechanism and (ii) costs of | 23 | | transportation and storage services of SNG purchased from | 24 | | interstate pipelines under federally approved tariffs. The | 25 | | clean coal SNG facility rider mechanism (A) shall be applicable | 26 | | to all customers who receive transportation service from the |
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| 1 | | utility, (B) shall be designed to have an equal percentage | 2 | | impact on the transportation services rates of each class of | 3 | | the utility's total customers, and (C) shall accurately reflect | 4 | | the net customer savings, if any, and above market costs, if | 5 | | any, under the SNG contract. Any contract, the terms of which | 6 | | have been confirmed in writing by the Illinois Power Agency as | 7 | | set forth in subsection (h) (h-20) of this Section and the | 8 | | performance of the parties under such contract cannot be | 9 | | grounds for challenging prudence or cost recovery by the | 10 | | utility through the purchased gas adjustment clause, and in | 11 | | such cases, the Commission is directed not to consider, and has | 12 | | no authority to consider, any attempted challenges. | 13 | | The contracts entered into by Illinois gas utilities | 14 | | pursuant to subsection (h) of this Section shall provide that | 15 | | the utility retains the right to terminate the contract without | 16 | | further obligation or liability to any party if the contract | 17 | | has been impaired as a result of any legislative, | 18 | | administrative, judicial, or other governmental action that is | 19 | | taken that eliminates all or part of the prudence protection of | 20 | | this subsection (h-10) or denies the recoverability of all or | 21 | | part of the contract costs through the purchased gas adjustment | 22 | | clause. Should any Illinois gas utility exercise its right | 23 | | under this subsection (h-10) to terminate the contract, all | 24 | | contract costs incurred prior to termination are and will be | 25 | | deemed reasonable, prudent, and recoverable as and when | 26 | | incurred and not subject to review or disallowance by the |
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| 1 | | Commission. Any order, issued by the State requiring or | 2 | | authorizing the discontinuation of the merchant function, | 3 | | defined as the purchase and sale of natural gas by an Illinois | 4 | | gas utility for the ultimate consumer in its service territory | 5 | | shall include provisions necessary to prevent the impairment of | 6 | | the value of any contract hereunder over its full term. | 7 | | (h-15) Reconciliation account. The clean coal SNG facility | 8 | | shall establish a reconciliation account for the benefit of the | 9 | | retail customers of the utilities that have entered into | 10 | | contracts with the clean coal SNG facility pursuant to | 11 | | subsection (h). The reconciliation account shall be maintained | 12 | | and administered by an independent trustee that is mutually | 13 | | agreed upon by the owners of the clean coal SNG facility, the | 14 | | utilities, and the Commission in an interest-bearing account in | 15 | | accordance with the following: | 16 | | (1) The clean coal SNG facility shall conduct an | 17 | | analysis annually within 60 days after receiving the | 18 | | necessary cost information, which shall be provided by the | 19 | | gas utility within 6 months after the end of the preceding | 20 | | calendar year, to determine (i) the average annual contract | 21 | | SNG cost, which shall be calculated as the total amount | 22 | | paid for SNG purchased from the clean coal SNG facility | 23 | | over the preceding 12 months, plus the cost to the utility | 24 | | of the required transportation and storage services of SNG, | 25 | | divided by the total number of MMBtus of SNG actually | 26 | | purchased from the clean coal SNG facility in the preceding |
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| 1 | | 12 months under the utility contract; (ii) the average | 2 | | annual natural gas purchase cost, which shall be calculated | 3 | | as the total annual supply costs paid for natural gas | 4 | | (excluding any SNG) purchased by such utility over the | 5 | | preceding 12 months plus the costs of transportation and | 6 | | storage services of such natural gas (excluding such costs | 7 | | for SNG), divided by the total number of MMbtus of natural | 8 | | gas (excluding SNG) actually purchased by the utility | 9 | | during the year; (iii) the cost differential, which shall | 10 | | be the difference between the average annual contract SNG | 11 | | cost and the average annual natural gas purchase cost; and | 12 | | (iv) the revenue share target which shall be the cost | 13 | | differential multiplied by the total amount of SNG | 14 | | purchased over the preceding 12 months under such utility | 15 | | contract. | 16 | | (A) To the extent the annual average contract SNG | 17 | | cost is less than the annual average natural gas | 18 | | purchase cost the utility shall credit an amount equal | 19 | | to the revenue share target to the reconciliation | 20 | | account. Such credit payment shall be made within 30 | 21 | | days after the completed analysis in this subsection | 22 | | (h-15) and pursuant to this subparagraph (A) shall be | 23 | | deemed prudent and reasonable and not subject to | 24 | | Commission prudence review. | 25 | | (B) To the extent the annual average contract SNG | 26 | | cost is greater than the annual average natural gas |
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| 1 | | purchase cost the reconciliation account shall be used | 2 | | to provide a credit equal to the revenue share target | 3 | | to the utilities to be used to reduce the utility's | 4 | | natural gas costs through the purchased gas adjustment | 5 | | clause. Such payment shall be made within 30 days after | 6 | | the completed analysis pursuant to this subsection | 7 | | (h-15). | 8 | | (2) At the conclusion of the term of the SNG contracts | 9 | | pursuant to subsection (h) and the completion of the final | 10 | | annual analysis pursuant to this subsection (h-15), to the | 11 | | extent the facility owes any amount to retail customers, | 12 | | amounts in the account shall be credited to retail | 13 | | customers to the extent the owed amount is repaid; 50% of | 14 | | any additional amount in the reconciliation account shall | 15 | | be distributed to the utilities to be used to reduce the | 16 | | utilities' natural gas costs through the purchase gas | 17 | | adjustment clause with the remaining amount distributed to | 18 | | the clean coal SNG facility . Such payment shall be made | 19 | | within 30 days after the last completed analysis pursuant | 20 | | to this subsection (h-15). If the facility has repaid all | 21 | | owed amounts, if any, to retail customers and has | 22 | | distributed 50% of any additional amount in the account to | 23 | | the utilities, then the owners of the clean coal SNG | 24 | | facility shall have no further obligation to the utility or | 25 | | the retail customers. | 26 | | If, at the conclusion of the term of the contracts |
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| 1 | | pursuant to subsection (h) and the completion of the final | 2 | | annual analysis pursuant to this subsection (h-15), the | 3 | | facility owes any amount to retail customers and the | 4 | | account has been depleted, then the clean coal SNG facility | 5 | | shall be liable for any remaining amount owed to the retail | 6 | | customers. The clean coal SNG facility shall market the | 7 | | daily production of SNG and distribute on a monthly basis | 8 | | 5% of the amounts collected with respect to such future | 9 | | sales to the utilities in proportion to each utility's SNG | 10 | | contract to be used to reduce the utility's natural gas | 11 | | costs through the purchase gas adjustment clause; such | 12 | | payments to the utility shall continue until either 15 | 13 | | years after the conclusion of the contract or such time as | 14 | | the sum of such payments equals the remaining amount owed | 15 | | to the retail customers at the end of the contract, | 16 | | whichever is earlier. If the debt to the retail customers | 17 | | is not repaid within 15 years after the conclusion of the | 18 | | contract, then the owner of the clean coal SNG facility | 19 | | must sell the facility, and all proceeds from that sale | 20 | | must be used to repay any amount owed to the retail | 21 | | customers under this subsection (h-15). | 22 | | The retail customers shall have first priority in | 23 | | recovering that debt above any creditors, except the | 24 | | secured lenders to the extent that the secured lenders have | 25 | | any secured debt outstanding, including any parent | 26 | | companies or affiliates of the clean coal SNG facility . |
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| 1 | | (3) 50% of all additional net revenue, defined as | 2 | | miscellaneous net revenue after cost allowance and above | 3 | | the budgeted estimate established for revenue pursuant to | 4 | | subsection (h), including sale of substitute natural gas | 5 | | derived from the clean coal SNG facility above the | 6 | | nameplate capacity of the facility and other by-products | 7 | | produced by the facility, shall be credited to the | 8 | | reconciliation account on an annual basis with such payment | 9 | | made within 30 days after the end of each calendar year | 10 | | during the term of the contract. | 11 | | (4) The clean coal SNG facility shall each year, | 12 | | starting in the facility's first year of commercial | 13 | | operation, file with the Commission, in such form as the | 14 | | Commission shall require, a report as to the reconciliation | 15 | | account. The annual report must contain the following | 16 | | information: | 17 | | (A) the revenue share target amount; | 18 | | (B) the amount credited or debited to the | 19 | | reconciliation account during the year; | 20 | | (C) the amount credited to the utilities to be used | 21 | | to reduce the utilities natural gas costs though the | 22 | | purchase gas adjustment clause; | 23 | | (D) the total amount of reconciliation account at | 24 | | the beginning and end of the year; | 25 | | (E) the total amount of consumer saving to date; | 26 | | and |
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| 1 | | (F) any additional information the Commission may | 2 | | require. | 3 | | When any report is erroneous or defective or appears to the | 4 | | Commission to be erroneous or defective, the Commission may | 5 | | notify the clean coal SNG facility to amend the report within | 6 | | 30 days; before or after the termination of the 30-day period, | 7 | | the Commission may examine the trustee of the reconciliation | 8 | | account or the officers, agents, employees, books records, or | 9 | | accounts of the clean coal SNG facility and correct such items | 10 | | in the report as upon such examination the Commission may find | 11 | | defective or erroneous. All reports shall be under oath. | 12 | | All reports made to the Commission by the clean coal SNG | 13 | | facility and the contents of the reports shall be open to | 14 | | public inspection and shall be deemed a public record under the | 15 | | Freedom of Information Act. Such reports shall be preserved in | 16 | | the office of the Commission. The Commission shall publish an | 17 | | annual summary of the reports prior to February 1 of the | 18 | | following year. The annual summary shall be made available to | 19 | | the public on the Commission's website and shall be submitted | 20 | | to the General Assembly. | 21 | | Any facility that fails to file the report required under | 22 | | this paragraph (4) to the Commission within the time specified | 23 | | or to make specific answer to any question propounded by the | 24 | | Commission within 30 days after the time it is lawfully | 25 | | required to do so, or within such further time not to exceed 90 | 26 | | days as may be allowed by the Commission in its discretion, |
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| 1 | | shall pay a penalty of $500 to the Commission for each day it | 2 | | is in default. | 3 | | Any person who willfully makes any false report to the | 4 | | Commission or to any member, officer, or employee thereof, any | 5 | | person who willfully in a report withholds or fails to provide | 6 | | material information to which the Commission is entitled under | 7 | | this paragraph (4) and which information is either required to | 8 | | be filed by statute, rule, regulation, order, or decision of | 9 | | the Commission or has been requested by the Commission, and any | 10 | | person who willfully aids or abets such person shall be guilty | 11 | | of a Class A misdemeanor. | 12 | | With respect to each contract entered into by the company | 13 | | with an Illinois utility in accordance with the terms stated in | 14 | | subsection (h) of this Section, within 60 days following the | 15 | | completion of purchases of SNG, the Illinois Power Agency shall | 16 | | conduct an analysis to determine (i) the average contract SNG | 17 | | cost, which shall be calculated as the total amount paid to a | 18 | | company for SNG over the contract term, plus the cost to the | 19 | | utility of the required transportation and storage services of | 20 | | SNG, divided by the total number of MMBtus of SNG actually | 21 | | purchased under the utility contract; (ii) the average natural | 22 | | gas purchase cost, which shall be calculated as the total | 23 | | annual supply costs paid for natural gas (excluding SNG) | 24 | | purchased by such utility over the contract term, plus the | 25 | | costs of transportation and storage services of such natural | 26 | | gas (excluding such costs for SNG), divided by the total number |
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| 1 | | of MMBtus of natural gas (excluding SNG) actually purchased by | 2 | | the utility during the contract term; (iii) the cost | 3 | | differential, which shall be the difference between the average | 4 | | contract SNG cost and the average natural gas purchase cost; | 5 | | and (iv) the revenue share target, which shall be the cost | 6 | | differential multiplied by the total amount of SNG purchased | 7 | | under such utility contract. | 8 | | If the average contract SNG cost is equal to or less than | 9 | | the average natural gas purchase cost, then the company shall | 10 | | have no further obligation to the utility. If the | 11 | | average contract SNG cost for such SNG contract is greater | 12 | | than the average natural gas purchase cost | 13 | | for such utility, then the company shall market the daily | 14 | | production of SNG and distribute on a monthly basis 5% of | 15 | | amounts collected with respect to such future sales to the | 16 | | utilities in proportion to each utility's SNG purchases from | 17 | | the company during the term of the SNG contract to be used to | 18 | | reduce the utility's natural gas costs through the purchased | 19 | | gas adjustment clause; such payments to the utility shall | 20 | | continue until such time as the sum of such payments equals the | 21 | | revenue share target of that utility. The company or utilities | 22 | | shall have no obligation to repay the revenue share target | 23 | | except as provided for in this subsection (h-15). | 24 | | (h-20) The General Assembly authorizes the Illinois | 25 | | Finance Authority to issue bonds to the maximum extent | 26 | | permitted to finance coal gasification facilities described in |
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| 1 | | this Section, which constitute both "industrial projects" | 2 | | under Article 801 of the Illinois Finance Authority Act and | 3 | | "clean coal and energy projects" under Sections 825-65 through | 4 | | 825-75 of the Illinois Finance Authority Act. The General | 5 | | Assembly further authorizes the Illinois Power Agency to become | 6 | | party to agreements and take such actions as necessary to | 7 | | enable the Illinois Power Agency or its designate to (i) review | 8 | | and confirm in writing that the terms stated in subsection (h) | 9 | | of this Section are incorporated in the SNG contract, and (ii) | 10 | | conduct an analysis pursuant to subsection (h-15) of this | 11 | | Section. | 12 | | Administrative costs incurred by the Illinois Finance | 13 | | Authority and Illinois Power Agency in performance of this | 14 | | subsection (h-20) shall be subject to reimbursement by the | 15 | | clean coal SNG facility company on terms as the Illinois | 16 | | Finance Authority , the Illinois Power Agency, and the clean | 17 | | coal SNG facility company may agree. The utility and its | 18 | | customers shall have no obligation to reimburse the clean coal | 19 | | SNG facility or company, the Illinois Finance Authority , or the | 20 | | Illinois Power Agency for any such costs. | 21 | | (h-25) The State of Illinois pledges that the State may not | 22 | | enact any law or take any action to (1) break or repeal the | 23 | | authority for SNG purchase contracts entered into between | 24 | | public gas utilities and the clean coal SNG facility pursuant | 25 | | to subsection (h) of this Section or (2) deny public gas | 26 | | utilities their full cost recovery for contract costs, as |
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| 1 | | defined in subsection (h-10), that are incurred under such SNG | 2 | | purchase contracts. These pledges are for the benefit of the | 3 | | parties to such SNG purchase contracts and the issuers and | 4 | | holders of bonds or other obligations issued or incurred to | 5 | | finance or refinance the clean coal SNG facility. The | 6 | | beneficiaries are authorized to include and refer to these | 7 | | pledges in any finance agreement into which they may enter in | 8 | | regard to such contracts. | 9 | | (h-30) The State of Illinois retains and reserves all other | 10 | | rights to enact new or amendatory legislation or take any other | 11 | | action, including, but not limited to, such legislation or | 12 | | other action that would (1) directly or indirectly raise the | 13 | | costs that the clean coal SNG facility must incur; (2) directly | 14 | | or indirectly place additional restrictions, regulations, or | 15 | | requirements on the clean coal SNG facility; (3) prohibit | 16 | | sequestration in general or prohibit a specific sequestration | 17 | | method or project; or (4) increase minimum sequestration | 18 | | requirements. | 19 | | (i) If a gas utility or an affiliate of a gas utility has | 20 | | an ownership interest in any entity that produces or sells | 21 | | synthetic natural gas, Article VII of this Act shall apply.
| 22 | | (Source: P.A. 95-1027, eff. 6-1-09; 96-1364, eff. 7-28-10.) | 23 | | Section 20. The Illinois Gas Pipeline Safety Act is amended | 24 | | by changing Sections 2.02, 2.03, 2.04, and 3 as follows:
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| 1 | | (220 ILCS 20/2.02) (from Ch. 111 2/3, par. 552.2)
| 2 | | Sec. 2.02.
| 3 | | "Gas" means natural gas, flammable gas or gas which is | 4 | | toxic or
corrosive. "Gas" also means carbon dioxide in any | 5 | | physical form, whenever transported by pipeline for the purpose | 6 | | of sequestration.
| 7 | | (Source: P.A. 76-1588.)
| 8 | | (220 ILCS 20/2.03) (from Ch. 111 2/3, par. 552.3)
| 9 | | Sec. 2.03.
"Transportation of gas" means the gathering, | 10 | | transmission, or
distribution of gas by pipeline or its | 11 | | storage, within this State and not
subject to the jurisdiction | 12 | | of the Federal Energy Regulatory
Commission under the
Natural | 13 | | Gas Act, except that it includes the transmission of gas | 14 | | through
pipeline facilities within this State that transport | 15 | | gas from an interstate
gas pipeline to a direct sales customer | 16 | | within this State purchasing gas
for its own consumption. | 17 | | "Transportation of gas" also includes
the conveyance of gas | 18 | | from a gas main through the primary fuel line to the
outside | 19 | | wall of residential
premises. If the gas meter is placed within | 20 | | 3 feet of the structure, the
utility's responsibility shall end | 21 | | at the outlet side of the meter. "Transportation of gas" also | 22 | | includes the conveyance of carbon dioxide in any physical form | 23 | | for the purpose of sequestration.
| 24 | | (Source: P.A. 87-1092; 88-314.)
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| 1 | | (220 ILCS 20/2.04) (from Ch. 111 2/3, par. 552.4)
| 2 | | Sec. 2.04.
"Pipeline facilities" includes new and existing | 3 | | pipe rights-of-way and
any equipment, facility, or building | 4 | | used in the transportation of gas
or the
treatment of gas | 5 | | during the course of transportation and
includes facilities | 6 | | within this State that transport gas from an interstate
gas | 7 | | pipeline to a direct sales customer within this State | 8 | | purchasing gas
for its own consumption, but
"rights-of-way" as | 9 | | used in this Act does not authorize the Commission to
| 10 | | prescribe, under this Act, the location or
routing of any | 11 | | pipeline facility. "Pipeline facilities" also includes
new and | 12 | | existing pipes and lines and any other equipment, facility, or
| 13 | | structure, except customer-owned branch lines connected to the | 14 | | primary fuel
lines, used to convey gas from a gas main to the | 15 | | outside wall of
residential premises, and any person who | 16 | | provides gas service directly to its
residential customer | 17 | | through these facilities shall be deemed to operate
such | 18 | | pipeline facilities for purposes of this Act irrespective of | 19 | | the ownership
of the facilities or the location of the | 20 | | facilities with respect to the
meter, except that a person who | 21 | | provides gas service to a "master meter
system", as that term | 22 | | is defined at 49 C.F.R. Section 191.3, shall not be
deemed to | 23 | | operate any facilities downstream of the master meter. | 24 | | "Pipeline facilities" also includes new and existing pipe | 25 | | rights-of-way and any equipment, facility, or building used in | 26 | | the transportation of carbon dioxide in any physical form for |
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| 1 | | the purpose of sequestration.
| 2 | | (Source: P.A. 87-1092; 88-314.)
| 3 | | (220 ILCS 20/3) (from Ch. 111 2/3, par. 553)
| 4 | | Sec. 3.
(a) As soon as practicable, but not later than 3 | 5 | | months after the
effective date of this Act, the Commission | 6 | | shall adopt rules establishing
minimum safety standards for the | 7 | | transportation of gas and for pipeline
facilities. Such rules | 8 | | shall be at least as inclusive, as stringent, and
compatible | 9 | | with, the minimum safety standards adopted by the Secretary of
| 10 | | Transportation under the Federal Act. Thereafter, the | 11 | | Commission shall
maintain such rules so that the rules are at | 12 | | least as inclusive, as
stringent, and compatible with, the | 13 | | minimum standards from time to time in
effect under the Federal | 14 | | Act. The Commission shall also adopt rules establishing minimum | 15 | | safety standards for the transportation of carbon dioxide in | 16 | | any physical form for the purpose of sequestration and for | 17 | | pipeline facilities used for that function.
| 18 | | (b) Standards established under this Act may apply to the | 19 | | design,
installation, inspection, testing, construction, | 20 | | extension, operation,
replacement, and maintenance of pipeline | 21 | | facilities. Standards affecting
the design, installation, | 22 | | construction, initial inspection and initial
testing are not | 23 | | applicable to pipeline facilities in existence on the date
such | 24 | | standards are adopted. Whenever the Commission finds a | 25 | | particular
facility to be hazardous to life or property, it may |
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| 1 | | require the person
operating such facility to take the steps | 2 | | necessary to remove the hazard.
| 3 | | (c) Standards established by the Commission under this Act | 4 | | shall,
subject to paragraphs (a) and (b) of this Section 3, be | 5 | | practicable and
designed to meet the need for pipeline safety. | 6 | | In prescribing such
standards, the Commission shall consider: | 7 | | similar standards established in
other states; relevant | 8 | | available pipeline safety data; whether such
standards are | 9 | | appropriate for the particular type of pipeline
| 10 | | transportation; the reasonableness of any proposed standards; | 11 | | and the
extent to which such standards will contribute to | 12 | | public safety.
| 13 | | Rules adopted under this Act are subject to "The Illinois | 14 | | Administrative
Procedure Act", approved September 22, 1975, as | 15 | | amended.
| 16 | | (Source: P.A. 83-333.)
| 17 | | Section 25. The Environmental Protection Act is amended by | 18 | | adding Section 13.7 as follows: | 19 | | (415 ILCS 5/13.7 new) | 20 | | Sec. 13.7. Carbon dioxide sequestration sites. | 21 | | (a) For purposes of this Section, the term "carbon dioxide | 22 | | sequestration site" means a site or facility for which the | 23 | | Agency has issued a permit for the underground injection of | 24 | | carbon dioxide. |
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| 1 | | (b) The Agency shall inspect carbon dioxide sequestration | 2 | | sites for compliance with this Act, rules adopted under this | 3 | | Act, and permits issued by the Agency. | 4 | | (c) If the Agency issues a seal order under Section 34 of | 5 | | this Act in relation to a carbon dioxide sequestration site, or | 6 | | if a civil action for an injunction to halt activity at a | 7 | | carbon dioxide sequestration site is initiated under Section 43 | 8 | | of this Act at the request of the Agency, then the Agency shall | 9 | | post notice of such action on its website. | 10 | | (d) Persons seeking a permit or permit modification for the | 11 | | underground injection of carbon dioxide shall be liable to the | 12 | | Agency for all reasonable and documented costs incurred by the | 13 | | Agency that are associated with review and issuance of the | 14 | | permit, including, but not limited to, costs associated with | 15 | | public hearings and the review of permit applications. Once a | 16 | | permit is issued, the permittee shall be liable to the Agency | 17 | | for all reasonable and documented costs incurred by the Agency | 18 | | that are associated with inspections and other oversight of the | 19 | | carbon dioxide sequestration site. Persons liable for costs | 20 | | under this subsection (d) must pay the costs upon invoicing, or | 21 | | other request or demand for payment, by the Agency. Costs for | 22 | | which a person is liable under this subsection (d) are in | 23 | | addition to any other fees, penalties, or other relief provided | 24 | | under this Act or any other law. | 25 | | Moneys collected under this subsection (d) shall be | 26 | | deposited into the Environmental Protection Permit and |
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| 1 | | Inspection Fund established under Section 22.8 of this Act. The | 2 | | Agency may adopt rules relating to the collection of costs due | 3 | | under this subsection (d). | 4 | | (e) The Agency shall not issue a permit or permit | 5 | | modification for the underground injection of carbon dioxide | 6 | | unless all costs for which the permitee is liable under | 7 | | subsection (d) of this Section have been paid. | 8 | | (f) No person shall fail or refuse to pay costs for which | 9 | | the person is liable under subsection (d) of this Section. | 10 | | Section 97. Inseverability. The provisions of this Act are | 11 | | mutually dependent and inseverable. If any provision is held | 12 | | invalid, then this entire Act, including all new and amendatory | 13 | | provisions, is invalid.
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.".
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