Public Act 096-0781
 		





SB0052 Enrolled
LRB096 02025 RCE 12038 b






    AN ACT concerning finance.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. If and only if Senate Bill 658 of the 96th 
General Assembly (as amended by House Amendment No. 3) becomes 
law, the Illinois Power Agency Act is amended  by changing 
Section 1-56 as follows:
 
    (20 ILCS 3855/1-56 as added by 09600SB0658eng with ham003) 

    Sec. 1-56. Clean coal SNG facility construction.
    (a) It is the intention of the General Assembly to provide 
additional long-term natural gas price stability to the State 
and consumers by promoting the development of a clean coal SNG 
facility that would produce a minimum annual output of 30 Bcf 
of SNG and commence construction no later than June 1, 2013 on 
a brownfield site in a municipality with at least one million 
residents. The costs associated with preparing a  facility cost 
report for such a facility, which contains all of the 
information required by subsection (b) of this Section, may be 
paid or reimbursed pursuant to subsection (c) of this Section.
    (b) The facility cost report for a facility that meets the 
criteria set forth in subsection (a) of this Section shall be 
prepared by a duly licensed engineering firm that details the 
estimated capital costs payable to one or more contractors or 
suppliers for the engineering, procurement, and construction 
of the components comprising the facility and the estimated 
costs of operation and maintenance of the facility. The report 
must be provided to the General Assembly and the Agency on or 
before April 30, 2010.  The facility cost report shall include 
all off the following:
        (1) An estimate of the capital cost of the core plant 
    based on a front-end engineering and design study. The core 
    plant shall include all civil, structural, mechanical, 
    electrical, control, and safety systems.  The quoted 
    construction costs shall be expressed in nominal dollars as 
    of the date that the quote is prepared and shall include:
            (A)  capitalized financing costs during 
        construction;
            (B) taxes, insurance, and other owner's costs; and
            (C) any assumed escalation in materials and labor 
        beyond the date as of which the construction cost quote 
        is expressed;
        (2) An estimate of the capital cost of the balance of 
    the plant, including any capital costs associated with site 
    preparation and remediation, sequestration of carbon 
    dioxide emissions, and all interconnects and interfaces 
    required to operate the facility, such as construction or 
    backfeed power supply, pipelines to transport substitute 
    natural gas or carbon dioxide, potable water supply, 
    natural gas supply, water supply, water discharge, 
    landfill, access roads, and coal delivery. The front-end 
    engineering and design study and the cost study for the 
    balance of the plant shall include sufficient design work 
    to permit quantification of major categories of materials, 
    commodities and labor hours, and receipt of quotes from 
    vendors of major equipment required to construct and 
    operate the facility.
        (3) An operating and maintenance cost quote that will 
    provide the estimated cost of delivered fuel, personnel, 
    maintenance contracts, chemicals, catalysts, consumables, 
    spares, and other fixed and variable operating and 
    maintenance costs. This quote is subject to the following 
    requirements:
            (A) The delivered fuel cost estimate shall be 
        provided by a recognized third party expert or experts 
        in the fuel and transportation industries.
            (B) The balance of the operating and maintenance 
        cost quote, excluding delivered fuel costs shall be 
        developed based on the inputs provided by a duly 
        licensed engineering firm performing the construction 
        cost quote, potential vendors under long-term service 
        agreements and plant operating agreements, or 
        recognized third-party plant operator or operators.
        The operating and maintenance cost quote shall be 
    expressed in nominal dollars as of the date that the quote 
    is prepared and shall include (i) taxes, insurance, and 
    other owner's costs and (ii) any assumed escalation in 
    materials and labor beyond the date as of which the 
    operating and maintenance cost quote is expressed.
    (c) Reasonable amounts paid or due to be paid by the owner 
or owners of the clean coal SNG facility to third parties 
unrelated to the owner or owners to prepare the facility cost 
report will may be reimbursed or paid up to $10 million through 
Coal Development Bonds , through funding authorized pursuant to 
20 ILCS 3501/825-65.
    (d) The Agency shall review the facility report and based 
on that report, consider whether to enter into long term 
contracts to purchase SNG from the facility pursuant to Section 
1-20 of this Act.  To assist with its evaluation of the report, 
the Agency may hire one or more experts or consultants, the 
reasonable costs of which, not to exceed $250,000, shall be 
paid for by the owner or owners of the clean coal SNG facility 
submitting the facility cost report.  The Agency may begin the 
process of selecting such experts or consultants prior to 
receipt of the facility cost report.

(Source: 09600SB0658eng with ham003.)
 
    Section 10. If and only if Senate Bill 658 of the 96th 
General Assembly (as amended by House Amendment No. 3) becomes 
law, the General Obligation Bond Act is amended  by changing 
Section 7 as follows:
 



    (30 ILCS 330/7)  (from Ch. 127, par. 657)


    Sec. 7. Coal and Energy Development. The amount of 
$698,200,000 is
authorized to be used by the Department of 
Commerce and Economic Opportunity (formerly Department of 
Commerce and Community Affairs) for
coal and energy development 
purposes, pursuant to Sections 2, 3 and 3.1 of the
Illinois 
Coal and Energy Development Bond Act, for the purposes

specified
in Section 8.1 of the Energy Conservation and Coal 
Development Act, for
the purposes specified in Section 605-332 
of the Department of Commerce and
Economic Opportunity Law of 
the Civil Administrative Code of Illinois, and for the purpose 
of facility cost reports prepared pursuant to Sections 1-56 or 
Section 1-75(d)(4) of the Illinois Power Agency Act and for the 
purpose of development costs pursuant to Section 8.1 of the 
Energy Conservation and Coal Development Act.  Of this
amount:

    (a) $115,000,000 is
for the specific purposes of 
acquisition,
development, construction, reconstruction, 
improvement, financing,
architectural and technical planning 
and installation of capital facilities
consisting of 
buildings, structures, durable equipment, and land for the

purpose of capital development of coal resources within the 
State and for the
purposes specified in Section 8.1 of the 
Energy Conservation and Coal
Development Act;

    (b) $35,000,000 is for the purposes specified in Section 
8.1 of the
Energy
Conservation and Coal Development Act and 
making a grant to the owner of a
generating station
located in 
Illinois and having at least three coal-fired generating units

with accredited summer capability greater than 500 megawatts 
each at such
generating station as provided in Section 6 of 
that Bond Act;

    (c) $13,200,000 is for research, development and 
demonstration
of forms of energy
other than that derived from 
coal, either on or off State property;

    (d) $500,000,000 is for the purpose of providing financial 
assistance to
new
electric generating facilities as provided in 
Section 605-332 of the Department
of Commerce and Economic 
Opportunity Law of the Civil Administrative Code of
Illinois; 
and

    (e) $35,000,000 is for the purpose of facility cost reports 
prepared for not more than one facility pursuant to Section 
1-75(d)(4) of the Illinois Power Agency Act and not more than 
one facility pursuant to Section 1-56 of the Illinois Power 
Agency Act and for the purpose of up to $6,000,000 of 
development costs pursuant to Section 8.1 of the Energy 
Conservation and Coal Development Act. 
(Source: P.A. 94-793, eff. 5-19-06; 95-1026, eff. 1-12-09.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.