Public Act 096-0817
 		





SB0390 Enrolled
LRB096 06421 RCE 16505 b






    AN ACT concerning State government.

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

 
    Section 5. The Illinois Finance Authority Act is amended  by 
changing Sections 825-65, 825-70, and 825-75 as follows:
 
    (20 ILCS 3501/825-65)
    Sec. 825-65. Clean Coal, Coal, Energy Efficiency, and 
Renewable Energy Project Financing. 
    (a) Findings and declaration of policy.
        (i) It is hereby found and declared that
Illinois has 
    abundant coal resources and, in some areas of Illinois, the 
    demand
for power exceeds the generating capacity. 
    Incentives to encourage the
construction of coal-fueled 
    electric generating plants in Illinois to ensure
power 
    generating capacity into the future and to advance clean 
    coal technology and the use of Illinois coal are in the 
    best interests of all of
the citizens of Illinois.
        (ii)  It is further found and declared that Illinois has 
    abundant potential and resources to develop renewable 
    energy resource projects and that there are many 
    opportunities to invest in cost-effective energy 
    efficiency projects throughout the State.  The development 
    of those projects will create jobs and investment as well 
    as decrease environmental impacts and promote energy 
    independence in Illinois.  Accordingly, the development of 
    those projects is in the best interests of all of the 
    citizens of Illinois.
        (iii) The Authority is authorized to issue bonds to 
    help
finance Clean Coal, Coal, Energy Efficiency, and 
    Renewable Energy projects pursuant to this
Section.
    (b) Definitions.
        (i) "Clean Coal Project" means (A) "clean coal 
    facility", as defined in Section 1-10 of the Illinois Power 
    Agency Act; (B) "clean coal SNG facility", as defined in 
    Section 1-10 of the Illinois Power Agency Act; (C) 
    transmission lines and associated equipment that transfer 
    electricity from points of supply to points of delivery for 
    projects described in this subsection (b); (D) pipelines or 
    other methods to transfer carbon dioxide from the point of 
    production to the point of storage or sequestration for 
    projects described in this subsection (b); or (E) projects 
    to provide carbon abatement technology for existing 
    generating facilities. 
        (ii) "Coal Project" means new electric
generating 
    facilities or new gasification facilities, as defined in

    Section 605-332 of the Department of Commerce and
Economic 
    Opportunity Law of the Civil Administrative Code of 
    Illinois, which
may
include mine-mouth power plants, 
    projects that employ the use of clean coal
technology, 
    projects to provide scrubber technology for existing 
    energy
generating plants, or projects to provide electric 
    transmission facilities or new gasification facilities.
        (iii) “Energy Efficiency Project” means measures that 
    reduce the amount of electricity or natural gas required to 
    achieve a given end use, consistent with Section 1-10 of 
    the Illinois Power Agency Act. 
        (iv) "Renewable Energy Project" means (A) a project 
    that uses renewable energy resources, as defined in Section 
    1-10 of the Illinois Power Agency Act; (B) a project that 
    uses environmentally preferable technologies and practices 
    that result in improvements to the production of renewable 
    fuels, including but not limited to, cellulosic 
    conversion, water and energy conservation, fractionation, 
    alternative feedstocks, or reduced green house gas 
    emissions; (C) transmission lines and associated equipment 
    that transfer electricity from points of supply to points 
    of delivery for projects described in this subsection (b); 
    or (D) projects that use technology for the storage of 
    renewable energy, including, without limitation, the use 
    of battery or electrochemical storage technology for 
    mobile or stationary applications. 
    (c) Creation of reserve funds. The Authority may establish 
and maintain one
or more reserve funds to enhance bonds issued 
by the Authority for a Clean Coal Project, a Coal Project, an 
Energy Efficiency Project, or a Renewable

Energy Project.
There 
may be one or more accounts in these reserve funds in which 
there may be
deposited:
        (1) any proceeds of the bonds issued by the Authority 
    required to
be deposited therein by the terms of any 
    contract between the Authority and its
bondholders or any 
    resolution of the Authority;
        (2) any other moneys or funds of the Authority that it 
    may
determine to deposit therein from any other source; and
        (3) any other moneys or funds made available to the 
    Authority.
Subject to the terms of any pledge to the owners 
    of any bonds, moneys in any
reserve fund may be held and 
    applied to the payment of principal, premium, if
any, and 
    interest of such bonds.
    (d) Powers and duties. The Authority has the power:
        (1) To issue bonds in one or more series pursuant to 
    one or more
resolutions of the Authority for any Clean Coal 
    Project, Coal Project, Energy Efficiency Project, or 
    Renewable Energy Project authorized
under this Section, 
    within the authorization set forth in subsection (e).
        (2) To provide for the funding of any reserves or other 
    funds or
accounts deemed necessary by the Authority in 
    connection with any bonds issued
by the Authority.
        (3) To pledge any funds of the Authority or funds made 
    available to
the Authority that may be applied to such 
    purpose as security for any bonds or
any guarantees, 
    letters of credit, insurance contracts or similar credit

    support
or liquidity instruments securing the bonds.
        (4) To enter into agreements or contracts with third 
    parties,
whether public or private, including, without 
    limitation, the United States of
America, the State or any 
    department or agency thereof, to obtain any

    appropriations, grants, loans or guarantees that are 
    deemed necessary or
desirable by the Authority. Any such 
    guarantee, agreement or contract may
contain terms and 
    provisions necessary or desirable in connection with the

    program, subject to the requirements established by the 
    Act.
        (5) To exercise such other powers as are necessary or 
    incidental to
the foregoing.
    (e) Clean Coal Project, Coal Project, Energy Efficiency 
Project, and Renewable Energy Project bond authorization and 
financing limits. In
addition
to any other bonds authorized to 
be issued under
Sections 801-40(w), 825-60, 830-25
and 845-5, 
the Authority may have outstanding, at any time, bonds for the

purpose
enumerated in this
Section 825-65 in an aggregate 
principal amount that shall not
exceed $3,000,000,000, subject 
to the following limitations:  (i) up to $300,000,000 may be 
issued to
finance projects, as described in clause (C) of 
subsection (b)(i) and clause (C) of subsection (b)(iv) (b)(iii) 
of this Section 825-65; (ii) up to $500,000,000 may be issued 
to
finance projects, as described in clauses (D) and (E) of 
subsection (b)(i) of this Section 825-65; (iii) up to 
$2,000,000,000 may
be issued to finance Clean Coal Projects, as 
described in clauses (A) and (B) of subsection (b)(i) of this 
Section 825-65 and Coal Projects, as described in subsection 
(b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000 
may be issued to finance Energy Efficiency Projects, as 
described in subsection (b)(iii) of this Section 825-65 and 
Renewable Energy Projects, as described in clauses (A), (B), 
and (D) of subsection (b)(iii) of this Section 825-65. An 
application for a loan
financed from bond proceeds from a 
borrower or its affiliates for a Clean Coal Project, a Coal 
Project, Energy Efficiency Project, or a Renewable
 Energy 
Project may not be approved by the Authority for an amount in 
excess
of $450,000,000 for any borrower or its affiliates. 
These bonds shall not
constitute an indebtedness or obligation 
of the State of Illinois and it shall
be plainly stated on the 
face of each bond that it does not constitute an
indebtedness 
or obligation of the State of Illinois, but is payable solely 
from
the revenues, income or other assets of the Authority 
pledged therefor.
    (f) The bonding authority granted under this Section is in 
addition to and not limited by the provisions of Section 845-5.
(Source: P.A. 95-470, eff. 8-27-07; 96-103, eff. 1-1-10.)
 
    (20 ILCS 3501/825-70)
    Sec. 825-70. Criteria for participation in the program. 
Applications to
the
Authority for financing of any Clean Coal, 
Coal, Energy Efficiency Project, or Renewable Energy Project 
shall be reviewed
by the Authority. Upon submission of any such 
application, the Authority staff
shall review the application 
for its completeness and may, at the discretion of
the 
Authority staff, request such additional information as it 
deems necessary
or advisable to aid in review. If the Authority 
receives applications for
financing for Clean Coal, Coal, 
Energy Efficiency Project, or Renewable Energy Projects in 
excess of the bond
authorization
available for such financing 
at any one time, it shall consider applications in
the order of 
priority as it shall determine, in consultation with other 
State
agencies, and consistent with State policy to promote 
environmentally preferable technology and energy independence.
(Source: P.A. 96-103, eff. 1-1-10.)
 
    (20 ILCS 3501/825-75)
    Sec. 825-75. Additional Security. In the event that the 
Authority
determines
that monies of the Authority will not be 
sufficient for the payment of the
principal of and interest on 
any bonds issued by the Authority under
Sections
825-65 through 
825-75 of this Act for Clean Coal Projects, Coal Projects, 
Energy Efficiency Projects, or Renewable Energy Projects


during the next State fiscal
year, the Chairperson, as soon as 
practicable, shall certify to the Governor
the
amount required 
by the Authority to enable it to pay such principal, premium,

if
any, and interest on such bonds. The Governor shall submit 
the amount so
certified to the General Assembly as soon as 
practicable, but no later than the
end of the current State 
fiscal year. This subsection shall
apply to any
bonds or notes 
as to which the Authority shall have determined, in the

resolution authorizing the issuance of the bonds or notes, that 
this subsection
shall apply. Whenever the Authority makes such 
a determination, that fact
shall be plainly stated on the face 
of the bonds or notes and that fact should
also be reported to 
the Governor.
In the event of a withdrawal of moneys from a 
reserve fund established with
respect to any issue or issues of 
bonds of the Authority to pay principal,
premium, if any, and 
interest on such bonds, the Chairman of the Authority, as
soon 
as practicable, shall certify to the Governor the amount 
required to
restore the reserve fund to the level required in 
the resolution or indenture
securing those bonds. The Governor 
shall submit the amount so certified to the
General Assembly as 
soon as practicable, but no later than the end of the
current 
State fiscal year. The Authority shall obtain written approval 
from the
Governor for any bonds and notes to be issued under 
this Section.
(Source: P.A. 95-470, eff. 8-27-07; 96-103, eff. 1-1-10.)
 

    Section 99. Effective date. This Act takes effect January 
1, 2010.