Bill Text: IL HB3042 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Creates the Energy and Environmental Security Act. Amends the Energy Conservation and Coal Development Act. Creates a Qualified Clean Coal Technology Grant Program for the purpose of funding grants that will allow the grant recipient to (i) meet the qualifications of a qualified clean coal facility, (ii) operate the electric generating unit as a qualified clean coal facility while complying with State and federal emissions requirements, and (iii) mitigate the environmental impacts of the operation of coal-fueled electric generation units. Creates the Clean Coal Development and Utilization Fund to provide funding for grants. Amends the State Finance Act to make a conforming change. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Failed) 2019-01-08 - Session Sine Die [HB3042 Detail]

Download: Illinois-2017-HB3042-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3042

Introduced , by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:
20 ILCS 1105/1 from Ch. 96 1/2, par. 7401
20 ILCS 1105/17 new
20 ILCS 1105/20 new
30 ILCS 105/5.878 new

Creates the Energy and Environmental Security Act. Amends the Energy Conservation and Coal Development Act. Creates a Qualified Clean Coal Technology Grant Program for the purpose of funding grants that will allow the grant recipient to (i) meet the qualifications of a qualified clean coal facility, (ii) operate the electric generating unit as a qualified clean coal facility while complying with State and federal emissions requirements, and (iii) mitigate the environmental impacts of the operation of coal-fueled electric generation units. Creates the Clean Coal Development and Utilization Fund to provide funding for grants. Amends the State Finance Act to make a conforming change. Effective immediately.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4
ARTICLE 1. SHORT TITLE.
5 Section 1-1. Short title. This Act may be cited as the
6Energy and Environmental Security Act.
7
ARTICLE 5. AMENDATORY PROVISIONS
8 Section 5-5. The Energy Conservation and Coal Development
9Act is amended by changing Section 1 and by adding Sections 17
10and 20 as follows:
11 (20 ILCS 1105/1) (from Ch. 96 1/2, par. 7401)
12 Sec. 1. Definitions; transfer of duties.
13 (a) For the purposes of this Act, unless the context
14otherwise requires:
15 "Department" means the Department of Commerce and
16 Economic Opportunity.
17 "Director" means the Director of Commerce and Economic
18 Opportunity.
19 "Qualified Clean Coal Facility" means an electric
20 generating facility which uses United States high volatile

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1 rank bituminous coal with an emissions factor of less than
2 210 pounds of carbon dioxide per million BTU as its primary
3 fuel source.
4 (b) As provided in Section 80-20 of the Department of
5Natural Resources Act, the Department of Commerce and Community
6Affairs (now Department of Commerce and Economic Opportunity)
7shall assume the rights, powers, and duties of the former
8Department of Energy and Natural Resources under this Act,
9except as those rights, powers, and duties are otherwise
10allocated or transferred by law.
11(Source: P.A. 94-793, eff. 5-19-06.)
12 (20 ILCS 1105/17 new)
13 Sec. 17. Illinois Qualified Clean Coal Technology Grant
14Program.
15 (a) Subject to appropriation, the Department shall provide
16grants for the purpose of funding or financing capital
17projects, operating activities, contractual expenses and fees,
18and other expenses that will allow the grant recipient to (i)
19meet the qualifications of a qualified clean coal facility, as
20defined in this Act, (ii) operate the electric generating unit
21as a qualified clean coal facility while complying with State
22and federal emissions requirements applicable to the grant
23recipient's entire electric generating fleet, and (iii)
24mitigate the environmental impacts of the operation of
25coal-fueled electric generation units in this State. For

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1purposes of this Section, "contractual expenses and fees" shall
2include, without limitation, (i) contractual termination fees
3paid by the owner of a coal-fueled electric generation facility
4to terminate one or more contracts for the purchase or delivery
5of coal that is to be replaced by United States high volatile
6rank bituminous coal with an emissions factor of less than 210
7pounds of carbon dioxide per million btu and (ii) payments made
8by the owner of a coal-fueled electric generation facility,
9pursuant to contract, to the owner or operator of transmission
10facilities as the consideration for implementing transmission
11system efficiency improvements that will reduce congestion and
12increase capacity of generating units converted to burn coal
13meeting specified criteria. All grants shall be provided
14pursuant to contracts between the Department and an eligible
15recipient in accordance with this Section. Each grant must be
16provided for one or more specific capital projects, operating
17activities, contractual expenses and fees, or other expenses
18that have the specific objective or purpose of increasing the
19use of, or conversion to, high volatile rank bituminous coal
20with an emissions factor of less than 210 pounds of carbon
21dioxide per million btu and mitigating the environmental
22impacts of operating the electric generating unit or units.
23Grants may be provided for capital projects, operating
24activities, contractual expenses and fees, and other expenses
25incurred or to be incurred for the purpose of increasing the
26use of, or conversion to, high volatile rank bituminous coal

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1with an emissions factor of less than 210 pounds of carbon
2dioxide per million btu and having the following purposes or
3any other purpose that is consistent with the objectives of
4this Act:
5 (1) installation or modification of emissions controls
6 or other necessary equipment and materials on one or more
7 coal-fueled electric generating units;
8 (2) efficiency improvements such as reductions in heat
9 rate at one or more coal-fueled electric generating units
10 that reduce the amount of coal that must be burned to
11 produce a megawatthour of electricity;
12 (3) modifications or conversion of an existing
13 coal-fueled electric generating unit to a coal-fueled
14 electric generating unit capable of using high volatile
15 rank bituminous coal with an emissions factor of less than
16 210 pounds of carbon dioxide per million btu while meeting
17 applicable environmental requirements;
18 (4) installation of or modifications to equipment at
19 other electric generating units in the grant recipient's
20 generating fleet that are necessary to enable the grant
21 recipient to use high volatile rank bituminous coal with an
22 emissions factor of less than 210 pounds of carbon dioxide
23 per million btu at one or more electric generating units
24 while complying with applicable State and federal
25 emissions requirements on a fleet-wide basis;
26 (5) transmission system efficiency improvements to

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1 reduce congestion and increase capacity of units converted
2 to burn coal meeting specified criteria; and
3 (6) funding the costs of operating activities,
4 contractual expenses and fees, and other expenses incurred
5 to enable the increased use of, or conversion to, high
6 volatile rank bituminous coal with an emissions factor of
7 less than 210 pounds of carbon dioxide per million btu.
8 (b) Grant funds awarded may be paid to the recipient on a
9one-time basis or over a period of up to 5 years in accordance
10with the terms of the contract between the Department and the
11recipient. No grant amount shall exceed $500,000,000 in total
12over the term of the grant.
13 (c) The Department may provide grants based on the amount
14of funds available in the Clean Coal Technology Development and
15Utilization Fund; provided that at no time may payments be made
16to any recipient in excess of the total amount of funds
17available in the Clean Coal Technology Development and
18Utilization Fund.
19 (d) The grant contract between the Department and the
20recipient shall include, at a minimum, the following terms:
21 (1) the name and location of the coal-fueled electric
22 generating unit or units at or for which the capital
23 project, operating activity, or expense for which the grant
24 is being provided will be implemented or incurred;
25 (2) the total amount of the grant and the timing of the
26 release of the grant funds to the recipient, such as in a

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1 single payment or in a series of periodic payments over a
2 period of up to 5 years;
3 (3) a detailed description of the capital project,
4 operating activity, contractual expense or fee, or other
5 expense for which the grant is being provided, including a
6 description of the manner in which the capital project,
7 operating activity, or expense will enable or facilitate an
8 increase in the use of, or conversion to, high volatile
9 rank bituminous coal with an emissions factor of less than
10 210 pounds of carbon dioxide per million btu and mitigate
11 environmental impacts of the operation of the coal-fueled
12 electric generating unit;
13 (4) a detailed schedule for execution, implementation,
14 and completion of the capital project or operating
15 activity;
16 (5) quantifiable performance objectives or outcomes of
17 the capital project, operating activity, contractual
18 expense or fee, or other expense with respect to the
19 increased use of, or conversion to, high volatile rank
20 bituminous coal with an emissions factor of less than 210
21 pounds of carbon dioxide per million btu and mitigation of
22 environmental impacts of operation of the generating unit
23 or units, including a description of the manner in which
24 achievement of the performance objectives or outcomes will
25 be measured and will be reported by the recipient to the
26 Department;

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1 (6) a description of procedures by which the recipient
2 will (i) maintain accounts and records of expenditures of
3 grant funds, which accounts and records shall be made
4 available for inspection and audit by the Department on
5 reasonable notice, and (ii) provide periodic reports to the
6 Department on the expenditure of grant funds and on
7 progress in implementing or completing the capital project
8 or operating activity;
9 (7) a provision specifying that the grant amount will
10 not be increased if the cost of the capital project or
11 operating activity or the amount of the contractual
12 expenses and fees or other expenses exceeds the estimated
13 cost stated in the contract;
14 (8) provisions specifying that if the performance
15 objectives or outcomes for the capital project, operating
16 activity, contractual expenses and fees or other expenses
17 as specified in the contract are not achieved based on the
18 measurement methods specified in the contract, a portion of
19 the grant amount will be repaid by the recipient to the
20 Department in accordance with measures and procedures
21 specified in the contract; and
22 (9) such other usual and customary provisions for the
23 administration and monitoring of grants and grant
24 recipients as the Department may by rule adopt.
25 (20 ILCS 1105/20 new)

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1 Sec. 20. Clean Coal Technology Development and Utilization
2Fund.
3 (a) The Clean Coal Technology Development and Utilization
4Fund is created as a special fund in the State treasury.
5 (b) The Clean Coal Technology Development and Utilization
6Fund shall be administered by the Department to provide grants
7under Section 17 of this Act.
8 Section 5-25. The State Finance Act is amended by adding
9Section 5.878 as follows:
10 (30 ILCS 105/5.878 new)
11 Sec. 5.878. The Clean Coal Technology Development and
12Utilization Fund.
13
ARTICLE 99. EFFECTIVE DATE.
14 Section 99-999. Effective date. This Act takes effect upon
15becoming law.
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