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92_HB0063ham001
LRB9201187SMdvam04
1 AMENDMENT TO HOUSE BILL 63
2 AMENDMENT NO. . Amend House Bill 63 by replacing the
3 title with the following:
4 "AN ACT in relation to natural resources."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 1. Short title. This Act may be cited as the
8 Clean Air and Development Act.
9 Section 5. Definitions. For the purposes of this Act:
10 "Agency" means the Illinois Environmental Protection
11 Agency.
12 "Board" means the Clean Air and Development Board.
13 "Fund" means the Clean Air and Development Fund.
14 "Generating unit" means any coal-fired electricity
15 generating facility with a nameplate capacity of 15 megawatts
16 or greater used primarily to generate electricity for sale.
17 "Project" means any proposal submitted to the Board in
18 response to a request for project proposals that includes a
19 technology that will enhance the use of Illinois coal in
20 Illinois while enhancing environmental protection. "Project"
21 may include the cost of transmission facilities needed to
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1 transmit the electricity generated from a site using such
2 technology or the costs of coal handling. These technologies
3 include but are not limited to, flue gas desulfurization (or
4 "scrubbing"), limestone injection multistage burners,
5 selective catalytic reduction, selective non-catalytic
6 reduction, coal re-burning, staged combustion (or "overfire
7 air"), low-NOx burners, ammonia reagent injection systems,
8 repowering, fluidized-bed combustion, integrated gasification
9 combined cycle, coal liquefaction, and coal gasification.
10 "Qualified personnel" means employees who install,
11 operate, and maintain generation, transmission, or
12 distribution facilities within the State and have the
13 requisite knowledge, skills, and competence to perform those
14 functions in a safe and responsible manner in order to
15 provide safe and reliable service.
16 Section 10. Clean Air and Development Board.
17 (a) The Clean Air and Development Board is established
18 as an advisory board to the Agency. The Board shall be
19 composed of the following 15 voting members and one
20 non-voting member: one member of the General Assembly
21 appointed by the Speaker of the House of Representatives, one
22 member of the General Assembly appointed by the Minority
23 Leader of the House of Representatives; one member of the
24 General Assembly appointed by the President of the Senate,
25 one member of the General Assembly appointed by the Minority
26 Leader of the Senate; one member appointed by the Governor;
27 one member selected by the International Brotherhood of
28 Electrical Workers; one member selected by the United Mine
29 Workers; 3 members selected by the Illinois Coal Association;
30 3 members selected by the Illinois Environmental Council; one
31 member selected by the Sierra Club; one member selected by
32 the American Lung Association; and one non-voting member
33 selected by the Illinois Energy Association. The Governor
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1 shall select one of the 15 Board members to serve as Chair
2 pending the first election of officers by Board members.
3 The member appointed by the Governor shall serve for a
4 term of 4 years, unless otherwise provided in this
5 subsection. The initial term of the original appointee shall
6 expire on January 15, 2005. The term of the member appointed
7 by the Governor to fill a vacancy created on January 15,
8 2005, shall expire on January 15, 2009. The term of the
9 member appointed by the Governor to fill a vacancy created on
10 January 15, 2009, shall expire on January 15, 2013 or January
11 15, 2017, as determined by the Governor.
12 A member appointed by a legislative leader shall serve a
13 term of 5 years, unless otherwise provided in this
14 subsection. The initial term of a member appointed by a
15 legislative leader shall expire on January 15, 2006. The
16 term of a member appointed by a legislative leader to fill a
17 vacancy created on January 15, 2006, shall expire on January
18 15, 2011 or January 15, 2017, as determined by the
19 legislative leader.
20 The members chosen by the International Brotherhood of
21 Electrical Workers, United Mine Workers, Illinois Coal
22 Association, Illinois Environmental Council, Sierra Club,
23 American Lung Association, and Illinois Energy Association
24 shall serve for terms of 6 years. The initial terms of
25 original appointees shall expire on January 15, 2007. The
26 term of a member chosen by the International Brotherhood of
27 Electrical Workers, United Mine Workers, Illinois Coal
28 Association, Illinois Environmental Council, Sierra Club,
29 American Lung Association, or Illinois Energy Association to
30 fill a vacancy created on January 15, 2007 shall expire as
31 follows: 5 on January 15, 2013 and 6 on January 15, 2017, as
32 determined by lot.
33 A Board member appointed by the Speaker of the House of
34 Representatives, the Minority Leader of the House of
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1 Representatives, the President of the Senate, or the Minority
2 Leader of the Senate shall not receive compensation. All
3 other Board members shall be entitled to compensation for
4 their services not to exceed $25,000 annually. All Board
5 members shall be entitled to reimbursement for reasonable
6 expenses incurred in the performance of their duties as Board
7 members.
8 The Board shall meet at least annually or at the call of
9 the Chair for a meeting of the Board. At any time, a
10 majority of the Board may petition the Chair for a meeting of
11 the Board. A quorum shall be defined as a majority of those
12 voting members appointed to the Board.
13 (b) The Board shall provide advice and make
14 recommendations on the following Agency powers and duties:
15 (1) To develop a program to increase the
16 utilization of Illinois coal.
17 (2) To approve projects and funding, if the owner
18 of the generating unit receiving the funding agrees to:
19 (A) burn Illinois coal to generate
20 electricity,
21 (B) employ qualified personnel to install,
22 operate, and maintain generation, transmission, or
23 distribution facilities within the State, and
24 (C) reduce its emissions of sulfur dioxide or
25 nitrogen oxides or both as described in subdivisions
26 (c)(3) and (c)(4) of Section 15 of this Act.
27 (3) To cooperate to the fullest extent possible
28 with State and federal agencies and departments,
29 independent organizations, and other interested groups,
30 public and private, for the purposes of promoting
31 Illinois coal resources.
32 (4) To submit an annual report to the Governor and
33 the General Assembly outlining the progress and
34 accomplishments made in the year, providing an annual
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1 accounting of funds received and disbursed, and reviewing
2 the status of the program.
3 (5) To adopt, amend, and repeal rules, regulations,
4 and bylaws governing the Board's organization and conduct
5 of business.
6 (6) To recommend the authorization of the
7 expenditure of moneys for coal mining and coal
8 development projects from the Clean Air and Development
9 Fund. The expenditures shall be used to fund a
10 recommended amount of up to 50% of the costs of a
11 proposed project. However, the Board may exceed this
12 amount if the merits of the project are determined by the
13 Board to warrant additional funding and the project is
14 approved by a two-thirds vote of a quorum. All other
15 projects shall be approved by vote of a simple majority
16 of a quorum. The Board may use grants, loans, or any
17 other financial mechanism or any combination thereof to
18 fund such proposed projects consistent with this Act.
19 (7) To develop strategies and to propose policies
20 to promote environmentally responsible uses of Illinois
21 coal for meeting electric power supply requirements and
22 for other purposes.
23 (8) To develop and propose strategies that would
24 allow the transfer of ozone season nitrogen oxide credits
25 from the transportation and area source sectors of the
26 Illinois SIP Call NOx budget to the electric generating
27 unit sector for the purpose of offsetting any nitrogen
28 oxide emission increases associated with a funded
29 project.
30 (9) The Board may consider using stockpiled
31 emission credits or the value of those credits as a
32 factor in considering proposed projects.
33 (10) Projects on which construction had not yet
34 commenced prior to January 1, 2001, and that otherwise
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1 qualify, shall be eligible for funding assistance under
2 this Act.
3 Section 15. Board evaluation and recommendations
4 concerning project proposals.
5 (a) The Board shall evaluate project proposals based on
6 the following primary criteria:
7 (1) Incremental increase or retention in tons of
8 Illinois coal that would be used over the proposed term
9 of the proposed project.
10 (2) Incremental tons of sulfur dioxide that would
11 be reduced over the proposed term of the proposed
12 project.
13 (3) Amount of funding required from the Fund.
14 (b) The primary criteria shall be used by the Board to
15 prioritize the proposed projects. Both the incremental
16 increase or retention in Illinois coal use and the
17 incremental reduction of sulfur dioxide emissions over the
18 term of the proposed project shall be divided by requested
19 funding amount. The Board shall use the resultant values to
20 rank the proposals.
21 (1) Projects shall be initially ranked, from
22 highest to lowest, based on their ratio of incremental
23 increase or retention of Illinois coal use per million
24 dollars expended from the Fund and the ratio of
25 incremental tons of sulfur dioxide reduction per million
26 dollars expended from the Fund.
27 (2) The ratios of both the incremental increase or
28 retention of Illinois coal use and incremental tons of
29 sulfur dioxide reduced per million dollars expended from
30 the Fund shall be used in a bi-axial matrix. The matrix
31 shall be divided into at least 16 linearly proportional
32 quadrants. Those projects that are plotted in the
33 quadrants farthest from the origin of the matrix will
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1 receive the highest overall rankings.
2 (c) The Board shall consider secondary criteria prior to
3 making its recommendations to the Agency. These secondary
4 criteria shall be used to amend the overall project rankings.
5 The secondary criteria may include the following:
6 (1) The incremental tons of nitrogen oxides that
7 will be reduced over the proposed term of the project.
8 (2) The incremental tons of nitrogen oxides to be
9 reduced over the proposed term of the project divided by
10 the requested funding from the Fund.
11 (3) Whether the proposed project will result in
12 that unit's annual average sulfur dioxide emission rate
13 being below the proposing company's most recent annual
14 average sulfur dioxide emission rate of its coal-fired
15 units as reported in the United States Environmental
16 Protection Agency's acid rain emissions database.
17 (4) Whether the proposed project will result in
18 that unit's annual average nitrogen oxide emission rate
19 being below the proposing company's most recent annual
20 average nitrogen oxide emission rate for similar type
21 coal-fired boilers (i.e. tangential boiler, wall-fired
22 boiler, or cyclone boiler) as reported in the United
23 States Environmental Protection Agency's acid rain
24 emissions database.
25 (5) The technical feasibility of the proposed
26 project.
27 (d) The Board shall provide its overall project rankings
28 to the Agency within 6 months after it issues a request for
29 project proposals. Requests for proposed projects shall be
30 issued by the Board a minimum of twice per year.
31 Section 20. Agency consideration of Board
32 recommendations; notice to Board in cases of disagreement.
33 (a) The Agency shall consider the Board's
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1 recommendations in making its decision to distribute the
2 grant moneys provided for in this Act. The Agency shall make
3 its decision to distribute the grant moneys for the project
4 within 6 months after the board's written recommendation.
5 (b) If the Agency decides to deviate from any of the
6 Board's recommendations, then the Agency shall give the Board
7 written notice and a copy of this decision, with an
8 explanation of the reasons causing the deviation from the
9 Board's recommendations, within 15 days after issuance of the
10 Agency decision. Forty-five days from the issuance of the
11 Agency decision, a public hearing shall be convened at which
12 the Director of the Agency or his or her designee shall
13 appear and testify before the Board to explain the Agency's
14 decision to deviate from the Board's recommendations. The
15 Agency shall not proceed with a distribution of grant funds
16 under this Act until the above notice is provided to the
17 Board and a public hearing is conducted as described in this
18 Section.
19 Section 25. Rules. The Illinois Environmental Protection
20 Agency is authorized to promulgate rules to implement the
21 provisions of this Act.
22 Section 30. Bonds. The State of Illinois is authorized
23 to issue, sell, and provide for the retirement of general
24 obligation bonds of the State of Illinois in the aggregate
25 principal amount of $500,000,000, hereinafter called "Bonds",
26 for the purposes consistent with this Act.
27 Section 35. Bond proceeds. The proceeds of the bonds
28 shall be deposited into a separate fund known as the Clean
29 Air and Development Fund, which is hereby created.
30 Section 40. Expenditure of Funds. At all times, the
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1 proceeds from the sale of Bonds are subject to appropriation
2 by the General Assembly and may be expended in such amounts
3 and at such times as the Illinois Environmental Protection
4 Agency may deem necessary or desirable for the purposes of
5 this Act.
6 Section 905. The State Finance Act is amended by adding
7 Section 5.545 as follows:
8 (30 ILCS 105/5.545 new)
9 Sec. 5.545. The Clean Air and Development Fund.
10 Section 910. The Illinois Coal and Energy Development
11 Bond Act is amended by changing Section 6 as follows:
12 (20 ILCS 1110/6) (from Ch. 96 1/2, par. 4106)
13 Sec. 6. The Department of Commerce and Community Affairs
14 is authorized to use $120,000,000 for the purposes specified
15 in this Act. These funds shall be expended only for a grant
16 to the owner of a generating station located in Illinois and
17 having at least three coal-fired generating units with
18 accredited summer capacity greater than 500 megawatts each at
19 such generating station as specifically authorized by this
20 paragraph. Notwithstanding any of the other provisions of
21 this Act, in considering the approval of projects to be
22 funded under this Act, the Department of Commerce and
23 Community Affairs shall give special consideration to
24 projects which are designed to remove sulfur and other
25 pollutants in the preparation and utilization of coal, and in
26 the use and operation of electric utility generating plants
27 and industrial facilities which utilize Illinois coal as
28 their primary source of fuel. The Department of Commerce and
29 Community Affairs is directed to enter into a contract with
30 the owner of a generating station located in Illinois and
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1 having at least three coal-fired generating units with
2 accredited summer capability greater than 500 megawatts each
3 at such generating station for a grant of $35,000,000 to be
4 made by the State of Illinois to such owner to be used to pay
5 costs of designing, acquiring, constructing, installing and
6 testing facilities to reduce sulfur dioxide emissions at one
7 such generating unit to allow that unit to meet the
8 requirements of the Federal Clean Air Act Amendments of 1990
9 (P.L. 101-549) while continuing to use coal mined in Illinois
10 as its source of fuel.
11 (Source: P.A. 91-583, eff. 1-1-00.)
12 Section 915. The General Obligation Bond Act is amended
13 by changing Section 2 as follows:
14 (30 ILCS 330/2) (from Ch. 127, par. 652)
15 Sec. 2. Authorization for Bonds. The State of Illinois
16 is authorized to issue, sell and provide for the retirement
17 of General Obligation Bonds of the State of Illinois for the
18 categories and specific purposes expressed in Sections 2
19 through 8 of this Act, in the total amount of $14,697,632,592
20 $14,197,632,592.
21 The bonds authorized in this Section 2 and in Section 16
22 of this Act are herein called "Bonds".
23 Of the total amount of Bonds authorized in this Act, up
24 to $2,200,000,000 in aggregate original principal amount may
25 be issued and sold in accordance with the Baccalaureate
26 Savings Act in the form of General Obligation College Savings
27 Bonds.
28 Of the total amount of Bonds authorized in this Act, up
29 to $300,000,000 in aggregate original principal amount may be
30 issued and sold in accordance with the Retirement Savings Act
31 in the form of General Obligation Retirement Savings Bonds.
32 The issuance and sale of Bonds pursuant to the General
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1 Obligation Bond Act is an economical and efficient method of
2 financing the capital needs of the State. This Act will
3 permit the issuance of a multi-purpose General Obligation
4 Bond with uniform terms and features. This will not only
5 lower the cost of registration but also reduce the overall
6 cost of issuing debt by improving the marketability of
7 Illinois General Obligation Bonds.
8 (Source: P.A. 90-1, eff. 2-20-97; 90-8, eff. 12-8-97; 90-549,
9 eff. 12-8-97; 90-586, eff. 6-4-98; 91-39, eff. 6-15-99;
10 91-53, eff 6-30-99; 91-710, eff. 5-17-00.)
11 (30 ILCS 330/7) (from Ch. 127, par. 657)
12 Sec. 7. Coal and Energy Development. The amount of
13 $163,200,000 is authorized to be used by the Department of
14 Commerce and Community Affairs for coal and energy
15 development purposes, pursuant to Sections 2, 3 and 3.1 of
16 the Illinois Coal and Energy Development Bond Act, and for
17 the purposes specified in Section 8.1 of the Energy
18 Conservation and Coal Development Act. Of this amount
19 $115,000,000 is for the specific purposes of acquisition,
20 development, construction, reconstruction, improvement,
21 financing, architectural and technical planning and
22 installation of capital facilities consisting of buildings,
23 structures, durable equipment, and land for the purpose of
24 capital development of coal resources within the State and
25 for the purposes specified in Section 8.1 of the Energy
26 Conservation and Coal Development Act, $35,000,000 is for the
27 purposes specified in Section 8.1 of the Energy Conservation
28 and Coal Development Act, and making a grant to the owner of
29 a generating station located in Illinois and having at least
30 three coal-fired generating units with accredited summer
31 capability greater than 500 megawatts each at such generating
32 station as provided in Section 6 of that Bond Act and
33 $13,200,000 is for research, development and demonstration of
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1 forms of energy other than that derived from coal, either on
2 or off State property.
3 The amount of $500,000,000 is authorized to be used by
4 the Environmental Protection Agency for the purposes
5 consistent with the Clean Air and Development Act.
6 On or before May 1 each year until the principal of,
7 interest on, and premium, if any, on the $500,000,000 in
8 additional general obligation bonds authorized to be issued
9 under this amendatory Act of the 92nd General Assembly for
10 coal development have been paid, the Bureau of the Budget
11 shall certify the amount necessary to be appropriated in the
12 State fiscal year that begins on July 1 of that calendar year
13 to finance the principal of, interest on, and premium, if
14 any, on the $500,000,000 in additional general obligation
15 bonds authorized to be issued under this amendatory Act of
16 the 92nd General Assembly for coal development.
17 (Source: P.A. 89-445, eff. 2-7-96; 90-312, eff. 8-1-97;
18 90-549, eff. 12-8-97.)
19 Section 99. Effective date. This Act takes effect July
20 1, 2001.".