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Public Act 098-0090
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SB1603 Enrolled | LRB098 08881 HLH 39012 b |
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AN ACT concerning finance.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Finance Authority Act is amended by |
changing Sections 801-10, 801-55, 825-12, 825-65, 825-95, |
825-110, 830-10, and 830-15 as follows:
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(20 ILCS 3501/801-10)
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Sec. 801-10. Definitions. The following terms, whenever |
used or referred
to
in this Act, shall have the following |
meanings, except in such instances where
the context may |
clearly indicate otherwise:
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(a) The term "Authority" means the Illinois Finance |
Authority created by
this Act.
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(b) The term "project" means an industrial project, |
conservation project, housing project, public
purpose project, |
higher education project, health facility project, cultural
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institution project, municipal bond program project, |
agricultural facility or agribusiness, and "project" may
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include any combination of one or more of the foregoing |
undertaken jointly by
any person with one or more other |
persons.
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(c) The term "public purpose project" means any project or |
facility
including
without limitation land, buildings, |
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structures, machinery, equipment and all
other real and |
personal property, which is authorized or required by law to be
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acquired, constructed, improved, rehabilitated, reconstructed, |
replaced or
maintained by any unit of government or any other |
lawful public purpose which
is authorized or required by law to |
be undertaken by any unit of government.
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(d) The term "industrial project" means the acquisition, |
construction,
refurbishment, creation, development or |
redevelopment of any facility,
equipment, machinery, real |
property or personal property for use by any
instrumentality of |
the State or its political subdivisions, for use by any
person |
or institution, public or private, for profit or not for |
profit, or for
use in any trade or business including, but not |
limited to, any industrial,
manufacturing or commercial |
enterprise that is located within or outside the State, |
provided that, with respect to a project involving property |
located outside the State, the property must be owned, |
operated, leased or managed by an entity located within the |
State or an entity affiliated with an entity located within the |
State, and which is (1) a capital project
including but not |
limited to: (i) land and any rights therein, one or more
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buildings, structures or other improvements, machinery and |
equipment, whether
now existing or hereafter acquired, and |
whether or not located on the same site
or sites; (ii) all |
appurtenances and facilities incidental to the foregoing,
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including, but not limited to utilities, access roads, railroad |
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sidings, track,
docking and similar facilities, parking |
facilities, dockage, wharfage, railroad
roadbed, track, |
trestle, depot, terminal, switching and signaling or related
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equipment, site preparation and landscaping; and (iii) all |
non-capital costs
and expenses relating thereto or (2) any |
addition to, renovation,
rehabilitation or
improvement of a |
capital project or (3) any activity or undertaking within or |
outside the State, provided that, with respect to a project |
involving property located outside the State, the property must |
be owned, operated, leased or managed by an entity located |
within the State or an entity affiliated with an entity located |
within the State, which the
Authority determines will aid, |
assist or encourage economic growth, development
or |
redevelopment within the State or any area thereof, will |
promote the
expansion, retention or diversification of |
employment opportunities within the
State or any area thereof |
or will aid in stabilizing or developing any industry
or |
economic sector of the State economy. The term "industrial |
project" also
means the production of motion pictures.
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(e) The term "bond" or "bonds" shall include bonds, notes |
(including bond,
grant or revenue anticipation notes), |
certificates and/or other evidences of
indebtedness |
representing an obligation to pay money, including refunding
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bonds.
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(f) The terms "lease agreement" and "loan agreement" shall |
mean: (i) an
agreement whereby a project acquired by the |
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Authority by purchase, gift or
lease
is leased to any person, |
corporation or unit of local government which will use
or cause |
the project to be used as a project as heretofore defined upon |
terms
providing for lease rental payments at least sufficient |
to pay when due all
principal of, interest and premium, if any, |
on any bonds of the Authority
issued
with respect to such |
project, providing for the maintenance, insuring and
operation |
of the project on terms satisfactory to the Authority, |
providing for
disposition of the project upon termination of |
the lease term, including
purchase options or abandonment of |
the premises, and such other terms as may be
deemed desirable |
by the Authority, or (ii) any agreement pursuant to which the
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Authority agrees to loan the proceeds of its bonds issued with |
respect to a
project or other funds of the Authority to any |
person which will use or cause
the project to be used as a |
project as heretofore defined upon terms providing
for loan |
repayment installments at least sufficient to pay when due all
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principal of, interest and premium, if any, on any bonds of the |
Authority, if
any, issued with respect to the project, and |
providing for maintenance,
insurance and other matters as may |
be deemed desirable by the Authority.
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(g) The term "financial aid" means the expenditure of |
Authority funds or
funds provided by the Authority through the |
issuance of its bonds, notes or
other
evidences of indebtedness |
or from other sources for the development,
construction, |
acquisition or improvement of a project.
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(h) The term "person" means an individual, corporation, |
unit of government,
business trust, estate, trust, partnership |
or association, 2 or more persons
having a joint or common |
interest, or any other legal entity.
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(i) The term "unit of government" means the federal |
government, the State or
unit of local government, a school |
district, or any agency or instrumentality,
office, officer, |
department, division, bureau, commission, college or
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university thereof.
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(j) The term "health facility" means: (a) any public or |
private institution,
place, building, or agency required to be |
licensed under the Hospital Licensing
Act; (b) any public or |
private institution, place, building, or agency required
to be |
licensed under the Nursing Home Care Act, the Specialized |
Mental Health Rehabilitation Act, or the ID/DD Community Care |
Act; (c)
any public or licensed private hospital as defined in |
the Mental Health and
Developmental Disabilities Code; (d) any |
such facility exempted from such
licensure when the Director of |
Public Health attests that such exempted
facility
meets the |
statutory definition of a facility subject to licensure; (e) |
any
other
public or private health service institution, place, |
building, or agency which
the Director of Public Health attests |
is subject to certification by the
Secretary, U.S. Department |
of Health and Human Services under the Social
Security Act, as |
now or hereafter amended, or which the Director of Public
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Health attests is subject to standard-setting by a recognized |
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public or
voluntary accrediting or standard-setting agency; |
(f) any public or private
institution, place, building or |
agency engaged in providing one or more
supporting services to |
a health facility; (g) any public or private
institution,
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place, building or agency engaged in providing training in the |
healing arts,
including but not limited to schools of medicine, |
dentistry, osteopathy,
optometry, podiatry, pharmacy or |
nursing, schools for the training of x-ray,
laboratory or other |
health care technicians and schools for the training of
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para-professionals in the health care field; (h) any public or |
private
congregate, life or extended care or elderly housing |
facility or any public or
private home for the aged or infirm, |
including, without limitation, any
Facility as defined in the |
Life Care Facilities Act; (i) any public or private
mental, |
emotional or physical rehabilitation facility or any public or |
private
educational, counseling, or rehabilitation facility or |
home, for those persons
with a developmental disability, those |
who are physically ill or disabled, the
emotionally disturbed, |
those persons with a mental illness or persons with
learning or |
similar disabilities or problems; (j) any public or private
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alcohol, drug or substance abuse diagnosis, counseling |
treatment or
rehabilitation
facility, (k) any public or private |
institution, place, building or agency
licensed by the |
Department of Children and Family Services or which is not so
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licensed but which the Director of Children and Family Services |
attests
provides child care, child welfare or other services of |
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the type provided by
facilities
subject to such licensure; (l) |
any public or private adoption agency or
facility; and (m) any |
public or private blood bank or blood center. "Health
facility" |
also means a public or private structure or structures suitable
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primarily for use as a laboratory, laundry, nurses or interns |
residence or
other housing or hotel facility used in whole or |
in part for staff, employees
or
students and their families, |
patients or relatives of patients admitted for
treatment or |
care in a health facility, or persons conducting business with |
a
health facility, physician's facility, surgicenter, |
administration building,
research facility, maintenance, |
storage or utility facility and all structures
or facilities |
related to any of the foregoing or required or useful for the
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operation of a health facility, including parking or other |
facilities or other
supporting service structures required or |
useful for the orderly conduct of
such health facility. "Health |
facility" also means, with respect to a project located outside |
the State, any public or private institution, place, building, |
or agency which provides services similar to those described |
above, provided that such project is owned, operated, leased or |
managed by a participating health institution located within |
the State, or a participating health institution affiliated |
with an entity located within the State.
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(k) The term "participating health institution" means (i) a |
private corporation
or association or (ii) a public entity of |
this State, in either case authorized by the laws of this
State |
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or the applicable state to provide or operate a health facility |
as defined in this Act and which,
pursuant to the provisions of |
this Act, undertakes the financing, construction
or |
acquisition of a project or undertakes the refunding or |
refinancing of
obligations, loans, indebtedness or advances as |
provided in this Act.
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(l) The term "health facility project", means a specific |
health facility
work
or improvement to be financed or |
refinanced (including without limitation
through reimbursement |
of prior expenditures), acquired, constructed, enlarged,
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remodeled, renovated, improved, furnished, or equipped, with |
funds provided in
whole or in part hereunder, any accounts |
receivable, working capital, liability
or insurance cost or |
operating expense financing or refinancing program of a
health |
facility with or involving funds provided in whole or in part |
hereunder,
or any combination thereof.
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(m) The term "bond resolution" means the resolution or |
resolutions
authorizing the issuance of, or providing terms and |
conditions related to,
bonds issued
under this Act and |
includes, where appropriate, any trust agreement, trust
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indenture, indenture of mortgage or deed of trust providing |
terms and
conditions for such bonds.
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(n) The term "property" means any real, personal or mixed |
property, whether
tangible or intangible, or any interest |
therein, including, without limitation,
any real estate, |
leasehold interests, appurtenances, buildings, easements,
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equipment, furnishings, furniture, improvements, machinery, |
rights of way,
structures, accounts, contract rights or any |
interest therein.
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(o) The term "revenues" means, with respect to any project, |
the rents, fees,
charges, interest, principal repayments, |
collections and other income or profit
derived therefrom.
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(p) The term "higher education project" means, in the case |
of a private
institution of higher education, an educational |
facility to be acquired,
constructed, enlarged, remodeled, |
renovated, improved, furnished, or equipped,
or any |
combination thereof.
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(q) The term "cultural institution project" means, in the |
case of a cultural
institution, a cultural facility to be |
acquired, constructed, enlarged,
remodeled, renovated, |
improved, furnished, or equipped, or any combination
thereof.
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(r) The term "educational facility" means any property |
located within the
State, or any property located outside the |
State, provided that, if the property is located outside the |
State, it must be owned, operated, leased or managed by an |
entity located within the State or an entity affiliated with an |
entity located within the State, in each case
constructed or |
acquired before or after the effective date of this Act, which
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is
or will be, in whole or in part, suitable for the |
instruction, feeding,
recreation or housing of students, the |
conducting of research or other work of
a
private institution |
of higher education, the use by a private institution of
higher |
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education in connection with any educational, research or |
related or
incidental activities then being or to be conducted |
by it, or any combination
of the foregoing, including, without |
limitation, any such property suitable for
use as or in |
connection with any one or more of the following: an academic
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facility, administrative facility, agricultural facility, |
assembly hall,
athletic facility, auditorium, boating |
facility, campus, communication
facility,
computer facility, |
continuing education facility, classroom, dining hall,
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dormitory, exhibition hall, fire fighting facility, fire |
prevention facility,
food service and preparation facility, |
gymnasium, greenhouse, health care
facility, hospital, |
housing, instructional facility, laboratory, library,
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maintenance facility, medical facility, museum, offices, |
parking area,
physical education facility, recreational |
facility, research facility, stadium,
storage facility, |
student union, study facility, theatre or utility.
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(s) The term "cultural facility" means any property located |
within the State, or any property located outside the State, |
provided that, if the property is located outside the State, it |
must be owned, operated, leased or managed by an entity located |
within the State or an entity affiliated with an entity located |
within the State, in each case
constructed or acquired before |
or after the effective date of this Act, which
is or will be, |
in whole or in part, suitable for the particular purposes or
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needs
of a cultural institution, including, without |
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limitation, any such property
suitable for use as or in |
connection with any one or more of the following: an
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administrative facility, aquarium, assembly hall, auditorium, |
botanical garden,
exhibition hall, gallery, greenhouse, |
library, museum, scientific laboratory,
theater or zoological |
facility, and shall also include, without limitation,
books, |
works of art or music, animal, plant or aquatic life or other |
items for
display, exhibition or performance. The term |
"cultural facility" includes
buildings on the National |
Register of Historic Places which are owned or
operated by |
nonprofit entities.
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(t) "Private institution of higher education" means a |
not-for-profit
educational institution which is not owned by |
the State or any political
subdivision, agency, |
instrumentality, district or municipality thereof, which
is
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authorized by law to provide a program of education beyond the |
high school
level
and which:
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(1) Admits as regular students only individuals having |
a
certificate of graduation from a high school, or the |
recognized equivalent of
such a certificate;
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(2) Provides an educational program for which it awards |
a
bachelor's degree, or provides an educational program, |
admission into which is
conditioned upon the prior |
attainment of a bachelor's degree or its equivalent,
for |
which it awards a postgraduate degree, or provides not less |
than a 2-year
program which is acceptable for full credit |
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toward such a degree, or offers a
2-year program in |
engineering, mathematics, or the physical or biological
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sciences
which is designed to prepare the student to work |
as a technician and at a
semiprofessional level in |
engineering, scientific, or other technological
fields
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which require the understanding and application of basic |
engineering,
scientific, or mathematical principles or |
knowledge;
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(3) Is accredited by a nationally recognized |
accrediting agency or
association or, if not so accredited, |
is an institution whose credits are
accepted, on transfer, |
by not less than 3 institutions which are so accredited,
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for credit on the same basis as if transferred from an |
institution so
accredited, and holds an unrevoked |
certificate of approval under the Private
College Act from |
the Board of Higher Education, or is qualified as a
"degree |
granting institution" under the Academic Degree Act; and
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(4) Does not discriminate in the admission of students |
on the basis
of race or color.
"Private institution of |
higher education" also includes any "academic
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institution".
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(u) The term "academic institution" means any |
not-for-profit institution
which
is not owned by the State or |
any political subdivision, agency,
instrumentality,
district |
or municipality thereof, which institution engages in, or |
facilitates
academic, scientific, educational or professional |
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research or learning in a
field or fields of study taught at a |
private institution of higher education.
Academic institutions |
include, without limitation, libraries, archives,
academic, |
scientific, educational or professional societies, |
institutions,
associations or foundations having such |
purposes.
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(v) The term "cultural institution" means any |
not-for-profit institution
which
is not owned by the State or |
any political subdivision, agency,
instrumentality,
district |
or municipality thereof, which institution engages in the |
cultural,
intellectual, scientific, educational or artistic |
enrichment of the people of
the State. Cultural institutions |
include, without limitation, aquaria,
botanical societies, |
historical societies, libraries, museums, performing arts
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associations or societies, scientific societies and zoological |
societies.
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(w) The term "affiliate" means, with respect to financing |
of an agricultural
facility or an agribusiness, any lender, any |
person, firm or corporation
controlled by, or under common |
control with, such lender, and any person, firm
or corporation |
controlling such lender.
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(x) The term "agricultural facility" means land, any |
building or other
improvement thereon or thereto, and any |
personal properties deemed necessary or
suitable for use, |
whether or not now in existence, in farming, ranching, the
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production of agricultural commodities (including, without |
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limitation, the
products of aquaculture, hydroponics and |
silviculture) or the treating,
processing or storing of such |
agricultural commodities when such activities are
customarily |
engaged in by farmers as a part of farming and which land, |
building, improvement or personal property is located within |
the State, or is located outside the State, provided, that if |
such property is located outside the State, it must be owned, |
operated, leased, or managed by an entity located within the |
State or an entity affiliated with an entity located within the |
State .
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(y) The term "lender" with respect to financing of an |
agricultural facility
or an agribusiness, means any federal or |
State chartered bank, Federal Land
Bank,
Production Credit |
Association, Bank for Cooperatives, federal or State
chartered |
savings and loan association or building and loan association, |
Small
Business
Investment Company or any other institution |
qualified within this State to
originate and service loans, |
including, but without limitation to, insurance
companies, |
credit unions and mortgage loan companies. "Lender" also means |
a
wholly owned subsidiary of a manufacturer, seller or |
distributor of goods or
services that makes loans to businesses |
or individuals, commonly known as a
"captive finance company".
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(z) The term "agribusiness" means any sole proprietorship, |
limited
partnership, co-partnership, joint venture, |
corporation or cooperative which
operates or will operate a |
facility located within the State or outside the State, |
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provided, that if any facility is located outside the State, it |
must be owned, operated, leased, or managed by an entity |
located within the State or an entity affiliated with an entity |
located within the State, of Illinois that
is related to the
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processing of agricultural commodities (including, without |
limitation, the
products of aquaculture, hydroponics and |
silviculture) or the manufacturing,
production or construction |
of agricultural buildings, structures, equipment,
implements, |
and supplies, or any other facilities or processes used in
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agricultural production. Agribusiness includes but is not |
limited to the
following:
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(1) grain handling and processing, including grain |
storage,
drying, treatment, conditioning, mailing and |
packaging;
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(2) seed and feed grain development and processing;
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(3) fruit and vegetable processing, including |
preparation, canning
and packaging;
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(4) processing of livestock and livestock products, |
dairy products,
poultry and poultry products, fish or |
apiarian products, including slaughter,
shearing, |
collecting, preparation, canning and packaging;
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(5) fertilizer and agricultural chemical |
manufacturing,
processing, application and supplying;
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(6) farm machinery, equipment and implement |
manufacturing and
supplying;
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(7) manufacturing and supplying of agricultural |
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commodity
processing machinery and equipment, including |
machinery and equipment used in
slaughter, treatment, |
handling, collecting, preparation, canning or packaging
of |
agricultural commodities;
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(8) farm building and farm structure manufacturing, |
construction
and supplying;
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(9) construction, manufacturing, implementation, |
supplying or
servicing of irrigation, drainage and soil and |
water conservation devices or
equipment;
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(10) fuel processing and development facilities that |
produce fuel
from agricultural commodities or byproducts;
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(11) facilities and equipment for processing and |
packaging
agricultural commodities specifically for |
export;
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(12) facilities and equipment for forestry product |
processing and
supplying, including sawmilling operations, |
wood chip operations, timber
harvesting operations, and |
manufacturing of prefabricated buildings, paper,
furniture |
or other goods from forestry products;
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(13) facilities and equipment for research and |
development of
products, processes and equipment for the |
production, processing, preparation
or packaging of |
agricultural commodities and byproducts.
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(aa) The term "asset" with respect to financing of any |
agricultural facility
or
any agribusiness, means, but is not |
limited to the following: cash crops or
feed on hand; livestock |
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held for sale; breeding stock; marketable bonds and
securities; |
securities not readily marketable; accounts receivable; notes
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receivable; cash invested in growing crops; net cash value of |
life insurance;
machinery and equipment; cars and trucks; farm |
and other real estate including
life estates and personal |
residence; value of beneficial interests in trusts;
government |
payments or grants; and any other assets.
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(bb) The term "liability" with respect to financing of any |
agricultural
facility or any agribusiness shall include, but |
not be limited to the
following:
accounts payable; notes or |
other indebtedness owed to any source; taxes; rent;
amounts |
owed on real estate contracts or real estate mortgages; |
judgments;
accrued interest payable; and any other liability.
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(cc) The term "Predecessor Authorities" means those |
authorities as described
in Section 845-75.
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(dd) The term "housing project" means a specific work or |
improvement located within the State or outside the State and
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undertaken
to provide residential dwelling accommodations, |
including the acquisition,
construction or rehabilitation of |
lands, buildings and community facilities and
in connection |
therewith to provide nonhousing facilities which are part of |
the
housing project, including land, buildings, improvements, |
equipment and all
ancillary facilities for use for offices, |
stores, retirement homes, hotels,
financial institutions, |
service, health care, education, recreation or research
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establishments, or any other commercial purpose which are or |
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are to be related
to a housing development , provided that any |
work or improvement located outside the State is owned, |
operated, leased or managed by an entity located within the |
State, or any entity affiliated with an entity located within |
the State . |
(ee) The term "conservation project" means any project |
including the acquisition, construction, rehabilitation, |
maintenance, operation, or upgrade that is intended to create |
or expand open space or to reduce energy usage through |
efficiency measures. For the purpose of this definition, "open |
space" has the definition set forth under Section 10 of the |
Illinois Open Land Trust Act.
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(ff) The term "significant presence" means the existence |
within the State of the national or regional headquarters of an |
entity or group or such other facility of an entity or group of |
entities where a significant amount of the business functions |
are performed for such entity or group of entities. |
(gg) The term "municipal bond issuer" means the State or |
any other state or commonwealth of the United States, or any |
unit of local government, school district, agency or |
instrumentality, office, department, division, bureau, |
commission, college or university thereof located in the State |
or any other state or commonwealth of the United States. |
(hh) The term "municipal bond program project" means a |
program for the funding of the purchase of bonds, notes or |
other obligations issued by or on behalf of a municipal bond |
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issuer. |
(Source: P.A. 96-339, eff. 7-1-10; 96-1021, eff. 7-12-10; |
97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813, eff. |
7-13-12.)
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(20 ILCS 3501/801-55)
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Sec. 801-55. Required findings for projects located |
outside the State. The Authority may approve an application to |
finance or refinance a project located outside of the State |
other than a municipal bond program project only after it has |
made the following findings with respect to such financing or |
refinancing, all of which shall be deemed conclusive: |
(a) the entity financing or refinancing a project |
located outside the State, or an affiliate thereof, is also |
engaged in the financing or refinancing of a project |
located within the State or, alternately, the entity |
seeking the financing or refinancing, or an affiliate |
thereof, maintains a significant presence within the |
State; |
(b) financing or refinancing the out-of-state project |
would promote the economy of the State for the benefit of |
the health, welfare, safety, trade, commerce, industry and |
economy of the people of the State by creating employment |
opportunities in the State or lowering the cost of |
accessing housing, healthcare, private education, or |
cultural institutions or undertaking industrial projects, |
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housing projects, higher education projects, health |
facility projects, cultural institution projects, |
conservation projects, energy efficiency projects, |
agricultural facilities or agribusiness in the State by |
reducing the cost of financing , refinancing or operating |
projects; and |
(c) after giving effect to the financing or refinancing |
of the out-of-state project, the Authority shall have the |
ability to issue at least an additional $1,000,000,000 of |
bonds under Section 845-5(a) of this Act. |
The Authority may approve an application to finance or |
refinance a municipal bond program project located outside of |
the State only after it has made the following findings with |
respect to such financing or refinancing, all of which shall be |
deemed conclusive: |
(1) the municipal bond program project includes the |
purchase of bonds, notes, or obligations issued by or on |
behalf of the State or any agency, instrumentality, office, |
department, division, bureau, or commission thereof, or |
any unit of local government, school district, college, or |
university of the State; and |
(2) financing or refinancing the municipal bond |
program project would promote the economy of the State for |
the benefit of the health, welfare, safety, trade, |
commerce, industry, and economy of the people of the State |
by reducing the cost of borrowing to the State or such |
|
agency, instrumentality, office, department, division, |
bureau, commission, unit of local government, school |
district, college, or university. |
The Authority shall not provide financing or refinancing |
for any project, or portion thereof, located outside the |
boundaries of the United States of America. |
Notwithstanding any other provision of this Act, the |
Authority shall not provide financing or refinancing that uses |
State volume cap under Section 146 of the Internal Revenue Code |
of 1986, as amended, except as permitted under that Section |
146, or constitutes an indebtedness or obligation, general or |
moral, or a pledge of the full faith or loan of credit of the |
State for any project, or portion thereof, that is located |
outside of the State.
|
(Source: P.A. 96-1021, eff. 7-12-10.)
|
(20 ILCS 3501/825-12)
|
Sec. 825-12. Conservation projects. |
(a) The Authority may develop a program to provide |
low-interest loans and other financing to individuals, |
business entities, private organizations, and units of local |
government for conservation projects within the United States, |
provided that, if the conservation project is located outside |
of the State, it is owned, operated, leased or managed by an |
entity located within the State or any entity affiliated with |
an entity located within the State in the State of Illinois . |
|
(b) Projects under this Section may include, without |
limitation, the acquisition of land for open-space projects, |
preservation or recreation measures for open spaces, and energy |
conservation or efficiency projects that are intended to reduce |
energy usage and costs. |
(c) The Authority, in cooperation with the Department of |
Natural Resources and the Department of Commerce and Economic |
Opportunity, may adopt any rules necessary for the |
administration of this Section. The Authority must include any |
information concerning the program under this Section on its |
Internet website.
|
(Source: P.A. 95-697, eff. 11-6-07.)
|
(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. "Energy Efficiency Project" |
also includes measures that reduce the total Btus of |
electricity and natural gas needed to meet the end use or |
uses 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) 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. A |
Clean Coal Project or Coal Project must be located within the |
State. An Energy Efficiency Project may be located within the |
State or outside the State, provided that, if the Energy |
Efficiency Project is located outside of the State, it must be |
|
owned, operated, leased, or managed by an entity located within |
the State or any entity affiliated with an entity located |
within the State. 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; |
96-817, eff. 1-1-10.)
|
(20 ILCS 3501/825-95)
|
Sec. 825-95. Emerald ash borer revolving loan program. |
(a) The Illinois Finance Authority may shall administer an |
emerald ash borer revolving loan program. The program shall |
provide low-interest or zero-interest loans to units of local |
government for the treatment of standing trees and replanting |
of trees on public lands that are within emerald ash borer |
quarantine areas as established by the Illinois Department of |
Agriculture. The Authority may shall make loans based on the |
recommendation of the Department of Agriculture.
For the |
purposes of this Section, "treatment" means the |
administration, by environmentally sensitive processes and |
methods, of products and materials proven by academic research |
|
to protect ash trees from the invasive Emerald Ash Borer in |
order to prevent or reverse the damage and preserve the trees. |
(b) The loan funds, subject to appropriation, must be paid |
out of the Emerald Ash Borer Revolving Loan Fund, a special |
fund created in the State treasury. The moneys in the Fund |
consist of any moneys transferred or appropriated into the Fund |
as well as all repayments of loans made under this program. |
Moneys in the Fund may be used only for loans to units of local |
government for the treatment of standing trees and replanting |
of trees within emerald ash borer quarantine areas established |
by the Department of Agriculture and for no other purpose. All |
interest earned on moneys in the Fund must be deposited into |
the Fund.
|
(c) A loan for the treatment of standing trees and |
replanting of trees on public lands within emerald ash borer |
quarantine areas established by the Department of Agriculture |
may not exceed $5,000,000 to any one unit of local government. |
The repayment period for the loan may not exceed 20 years. The |
unit of local government shall repay, each year, at least 5% of |
the principal amount borrowed or the remaining balance of the |
loan, whichever is less. All repayments of loans must be |
deposited into the Emerald Ash Borer Revolving Loan Fund.
|
(d) Any loan under this Section to a unit of local |
government may not exceed the moneys that the unit of local |
government expends or dedicates for the reforestation project |
for which the loan is made.
|
|
(e) The Department of Agriculture may enter into agreements |
with a unit of local government under which the unit of local |
government is authorized to assist the Department in carrying |
out its duties in a quarantined area, including inspection and |
eradication of any dangerous insect or dangerous plant disease, |
and including the transportation, processing, and disposal of |
diseased material. The Department is authorized to provide |
compensation or financial assistance to the unit of local |
government for its costs.
|
(f) The Authority, with the assistance of the Department of |
Agriculture and the Department of Natural Resources, shall |
adopt rules to administer the program under this Section.
|
(Source: P.A. 95-588, eff. 9-4-07; 95-876, eff. 8-21-08.)
|
(20 ILCS 3501/825-110) |
Sec. 825-110. Implementation of ARRA provisions regarding |
qualified energy conservation bonds.
|
(a) Definitions. |
(i) "Affected local government" means any county or |
municipality within the
State if the county or municipality |
has a population of 100,000 or more, as defined in
Section |
54D(e)(2)(C) of the Code. |
(ii) "Allocation amount" means the $133,846,000 amount |
of qualified energy conservation bonds authorized under |
ARRA for the financing of qualifying projects located |
|
within the State and the sub-allocation of those amounts |
among each affected local government. |
(iii) "ARRA" means, collectively, the American |
Recovery and Reinvestment Act of 2009, including, without |
limitation, Section 54D of the Code; the guidance provided |
by the Internal Revenue Service applicable to qualified |
energy conservation bonds; and any legislation |
subsequently adopted by the United States Congress to |
extend or expand the economic development bond financing |
incentives authorized by ARRA. |
(iv) "ARRA implementing regulations" means the |
regulations promulgated by the Authority as further |
described in subdivision (c)(iv) of this Section to |
implement the provisions of this Section. |
(v) "Code" means the Internal Revenue Code of 1986, as |
amended. |
(vi) "Qualified energy conservation bond" means any |
qualified energy conservation bond issued pursuant to |
Section 54D of the Code. |
(vii) "Qualified energy conservation bond allocation" |
means an allocation of authority to issue qualified energy |
conservation bonds granted pursuant to Section 54D of the |
Code. |
(viii) "Regional authority" means the Central Illinois |
Economic Development Authority, Eastern Illinois Economic |
Development Authority, Joliet Arsenal Development |
|
Authority, Quad Cities Regional Economic Development |
Authority, Riverdale Development Authority, Southeastern |
Illinois Economic Development Authority, Southern Illinois |
Development Authority, Southwestern Illinois Development |
Authority, Tri-County River Valley Development Authority, |
Upper Illinois River Valley Development Authority, |
Illinois Urban Development Authority, Western Illinois |
Economic Development Authority, or Will-Kankakee Regional |
Development Authority. |
(ix) "Sub-allocation" means the portion of the |
allocation amount allocated to each affected local |
government. |
(x) "Waived qualified energy conservation bond |
allocation" means the amount of the qualified energy |
conservation bond allocation that an affected local |
government elects to reallocate to the State pursuant to |
Section 54D(e)(2)(B) of the Code. |
(xi) "Waiver agreement" means an agreement between the |
Authority and an
affected local government providing for |
the reallocation, in whole or in part, of that
affected |
local government's sub-allocation to the Authority. The |
waiver agreement may provide for the payment of an affected |
local
government's reasonable fees and costs as determined |
by the Authority in connection with
the affected local |
government's reallocation of its sub-allocation.
|
|
(b) Findings. |
It is found and declared that: |
(i) it is in the public interest and for the benefit of |
the State to maximize the use of economic development |
incentives authorized by ARRA; |
(ii) those incentives include the maximum use of the |
allocation amount for the issuance of qualified energy |
conservation bonds to promote energy conservation under |
the applicable provisions of ARRA; and |
(iii) those incentives also include the issuance by the |
Authority of qualified energy conservation bonds for the |
purposes of financing qualifying projects to be financed |
with proceeds of qualified energy conservation bonds.
|
(c) Powers of Authority. |
(i) In order to carry out the provisions of ARRA and |
further the purposes of this Section, the Authority has: |
(A) the power to receive from any affected local |
government its sub-allocation that it voluntarily |
waives to the Authority, in whole or in part, for |
allocation by the Authority to a regional authority |
specifically designated by that affected local |
government, and the Authority shall reallocate that |
waived qualified energy conservation bond allocation |
to the regional authority specifically designated by |
that affected local government; provided that (1) the |
|
affected local government must take official action by |
resolution or ordinance, as applicable, to waive the |
sub-allocation to the Authority and specifically |
designate that its waived qualified energy |
conservation bond allocation should be reallocated to |
a regional authority; (2) the regional authority must |
use the sub-allocation to issue qualified energy |
conservation bonds on or before August 16, 2010 and, if |
qualified energy conservation bonds are not issued on |
or before August 16, 2010, the sub-allocation shall be |
deemed waived to the Authority for reallocation by the |
Authority to qualifying projects; and (3) the proceeds |
of the qualified energy conservation bonds must be used |
for qualified projects within the jurisdiction of the |
applicable regional authority; |
(B) at the Authority's sole discretion, the power |
to reallocate any sub-allocation deemed waived to the |
Authority pursuant to subsection (c)(i)(A)(2) back to |
the Regional Authority that had the sub-allocation; |
(C) the power to enter into waiver agreements with |
affected local
governments to provide for the |
reallocation, in whole or in part, of their |
sub-allocations,
to receive waived qualified energy |
conservation bond allocations from those affected |
local governments, and to use those waived qualified |
energy conservation bond allocations, in whole or in |
|
part, to issue qualified energy conservation bonds of |
the Authority for qualifying projects or to reallocate |
those qualified energy conservation bond allocations, |
in whole or in part, to a county or municipality to |
issue its own energy conservation bonds for qualifying |
projects; and |
(D) the power to issue qualified energy |
conservation bonds for any project authorized to be |
financed with proceeds thereof under the applicable |
provisions of ARRA. |
(ii) In addition to the powers set forth in item (i), |
the Authority shall be the sole recipient, on behalf of the |
State, of any waived qualified energy conservation bond |
allocations. Qualified energy conservation bond |
allocations can be reallocated to the Authority only by |
voluntary waiver as provided in this Section. |
(iii) In addition to the powers set forth in items (i) |
and (ii), the Authority has any powers otherwise enjoyed by |
the Authority in connection with the issuance of its bonds |
if those powers are not in conflict with any provisions |
with respect to qualified energy conservation bonds set |
forth in ARRA. |
(iv) The Authority has the power to adopt regulations |
providing for the implementation of any of the provisions |
contained in this Section, including the provisions |
regarding waiver agreements and reallocation of all or any |
|
portion of the allocation amount and sub-allocations and |
the issuance of qualified energy conservation bonds; |
except that those regulations shall not (1) provide any |
waiver or reallocation of an affected local government's |
sub-allocation other than a voluntary waiver as described |
in subsection (c) or (2) be inconsistent with the |
provisions of subsection (c)(i). Regulations adopted by |
the Authority for determining reallocation of all or any |
portion of a waived qualified energy conservation |
allocation may include, but are not limited to, (1) the |
ability of the county or municipality to issue qualified |
energy conservation bonds by the end of a given calendar |
year, (2) the amount of jobs that will be retained or |
created, or both, by the qualifying project to be financed |
by qualified energy conservation bonds, and (3) the |
geographical proximity of the qualifying project to be |
financed by qualified energy conservation bonds to a |
municipality or county that reallocated its sub-allocation |
to the Authority.
|
(d) Established dates for notice. |
Any affected local government or regional authority that |
has issued qualified energy conservation bonds on or before the |
effective date of this Section must report its issuance of |
qualified energy conservation bonds to the Authority within 30 |
days after the effective date of this Section. After the |
|
effective date of this Section, any affected local government |
or any regional authority must report its issuance of qualified |
energy conservation bonds to the Authority not less than 30 |
days after those bonds are issued.
|
(e) Reports to the General Assembly. |
Starting 60 days after the effective date of this Section |
and ending when there is no longer any allocation amount, the |
Authority shall file a report before the end 15th day of each |
fiscal year month with the General Assembly detailing its |
implementation of this Section, including but not limited to |
the dollar amount of the allocation amount that has been |
reallocated by the Authority pursuant to this Section, the |
qualified energy conservation bonds issued in the State as of |
the date of the report, and descriptions of the qualifying |
projects financed by those qualified energy conservation |
bonds.
|
(Source: P.A. 96-1020, eff. 7-12-10.)
|
(20 ILCS 3501/830-10)
|
Sec. 830-10.
(a) The Authority may shall establish a Farm |
Debt Relief Program to
help provide
eligible Illinois farmers |
with State assistance in meeting their
farming-related debts.
|
(b) To be eligible for the program, a person must (1) be |
actively engaged in
farming in this State, (2) have |
farming-related debts in an amount equal to at
least 55% of the |
|
person's total assets, and (3) demonstrate that he can secure
|
credit from a conventional lender for the 1986 crop year.
|
(c) An eligible person may apply to the Authority, in such |
manner as the
Authority may specify, for a one-time farm debt |
relief payment of up to 2% of
the person's outstanding |
farming-related debt. If the Authority determines that
the |
applicant is eligible for a payment under this
Section, it may |
then approve
a payment to the applicant. Such payment shall |
consist of a payment made by the
Authority directly to one or |
more of the applicant's farming-related creditors,
to be |
applied to the reduction of the applicant's farming-related |
debt. The
applicant shall be entitled to select the creditor or |
creditors to receive the
payment, unless the applicant is |
subject to the jurisdiction of a bankruptcy
court, in which |
case the selection of the court shall control.
|
(d) Payments shall be made from the Farm Emergency |
Assistance Fund, which is
hereby established as a special fund |
in the State treasury, from funds
appropriated to the Authority |
for that purpose. No grant may exceed the lesser
of (1) 2% of |
the applicant's outstanding farm-related debt, or (2) $2000. |
Not
more than one grant under this
Section may be made to any |
one person, or to any
one household, or to any single farming |
operation.
|
(e) Payments to applicants having farming-related debts in |
an amount equal
to
at least 55% of the person's total assets, |
but less than 70%, shall be repaid
by
the applicant to the |
|
Authority for deposit into the Farm Emergency Assistance
Fund |
within five years from the date the payment was made. Repayment |
shall be
made in equal installments during the five-year period |
with no additional
interest charge and may be prepaid in whole |
or in part at any time. Applicants
having farming-related debts |
in an amount equal to at least 70% of the person's
total assets |
shall not be required to make any repayment. Assets shall |
include,
but not be limited to, the following: cash crops or |
feed on hand; livestock
held for sale; breeding stock; |
marketable bonds and securities; securities not
readily |
marketable; accounts receivable; notes receivable; cash |
invested in
growing crops; net cash value of life insurance; |
machinery and equipment; cars
and trucks; farm and other real |
estate including life estates and personal
residence; value of |
beneficial interests in trusts; government payments or
grants; |
and any other assets. Debts shall include, but not be limited |
to, the
following: accounts payable; notes or other |
indebtedness owed to any source;
taxes; rent; amounts owed on |
real estate contracts or real estate mortgages;
judgments; |
accrued interest payable; and any other liability.
|
(Source: P.A. 93-205, eff. 1-1-04.)
|
(20 ILCS 3501/830-15)
|
Sec. 830-15. Interest-buy-back program.
|
(a) The Authority may shall establish an interest-buy-back |
program to subsidize
the interest cost on certain loans to |
|
Illinois farmers.
|
(b) To be eligible an applicant must (i) be a resident of |
Illinois; (ii) be
a
principal operator of a farm or land; (iii) |
derive at least 50% of annual gross
income from farming; and |
(iv) have a net worth of at least $10,000. The
Authority shall |
establish minimum and maximum financial requirements, maximum
|
payment amounts, starting and ending dates for the program, and |
other criteria.
|
(c) Lenders may apply on behalf of eligible applicants on |
forms provided by
the
Authority. Lenders may submit requests |
for payment on forms provided by the
Authority. Lenders and |
applicants shall be responsible for any fees or charges
the |
Authority may require.
|
(d) The Authority shall make payments to lenders from |
available
appropriations from the General Revenue Fund.
|
(Source: P.A. 93-205, eff. 1-1-04.)
|
Section 10. The Illinois Environmental Facilities |
Financing Act is amended by changing Sections 2 and 3 and by |
adding Section 7.5 as follows:
|
(20 ILCS 3515/2) (from Ch. 127, par. 722)
|
Sec. 2. Declaration of necessity and purpose - Liberal |
construction. (a) The General Assembly finds:
|
(i) that environmental damage seriously endangers the |
public health
and welfare;
|
|
(ii) that such environmental damage results from air, |
water, and
other resource pollution and from public water |
supply, solid waste
disposal, noise, surface mining and other |
environmental problems;
|
(iii) that to reduce, control and prevent such pollution |
and
problems, quality and land reclamation standards have been |
established
necessitating the employment of anti-pollution and |
reclamation devices,
equipment and facilities and stringent |
time schedules have been and will be
imposed for compliance
|
with such standards;
|
(iv) that it is desirable to provide additional and |
alternative
methods of financing the costs of the acquisition |
and installation of
the devices, equipment and facilities |
required to comply with the
quality and land reclamation |
standards;
|
(v) that the alternative method of financing provided in |
this Act is
therefore in the public interest and serves a |
public purpose in
protecting and promoting the health and |
welfare of the citizens of this
state by reducing, controlling |
and preventing environmental damage;
|
(vi) that it is desirable to promote the use of Illinois |
coal in a manner
that is consistent with air quality and land |
reclamation standards; and
|
(vii) that it is desirable to promote the use of |
alternative methods
for managing hazardous wastes and to |
provide additional and alternative
methods of financing the |
|
costs of establishing the recycling, incineration,
physical, |
chemical and biological treatment, and other facilities |
necessary
to meet the requirements of the Environmental |
Protection Act ; and |
(viii) that the environmental damage and pollution that |
occurs within this State often results from sources in other |
states, and that providing financing alternatives for |
environmental facilities that are located outside the State |
that are owned, operated, leased, managed by, or otherwise |
affiliated with, institutions located within the State can |
reduce, control, or prevent environmental damage and pollution |
within this State .
|
(b) It is the purpose of this Act, as more specifically |
described in
later sections, to authorize the State
authority |
to acquire, construct, reconstruct, repair, alter, improve,
|
extend, own, finance, lease, sell and otherwise dispose of |
pollution
control and surface mined land reclamation |
facilities to the end that the
State authority may be able to
|
promote the health and welfare of the people of this State and |
to vest
such State authority with all powers to enable such |
State authority to
accomplish such purpose; it is not intended |
by this Act that the State
authority shall itself be authorized |
to operate any such pollution
control, hazardous waste |
treatment or surface mined land
reclamation facilities; nor |
shall any such facilities be
geographically located outside the |
State of Illinois , except as otherwise provided in this Act . It |
|
is the intent
of the General Assembly that access to the |
benefits of the financing
herein provided for shall be equally |
available to all persons.
|
(c) It is the intent of the General Assembly that the State
|
authority shall give special consideration to small businesses |
as
defined in paragraph (i) of Section 3 of this Act in |
authorizing the
issuance of bonds for the financing of |
pollution control or hazardous
waste treatment facilities in |
order to assist small businesses in surviving
the economic |
burdens imposed by the required financing of such facilities.
|
(d) Notwithstanding paragraph (b) of this Section, it is |
the intent of
the General Assembly that with respect to |
applications involving environmental
facilities for new |
coal-fired electric steam generating plants and new
coal-fired |
industrial boilers as defined in paragraph (j) of Section 3 of |
this
Act, the State authority shall only finance such |
facilities where Illinois coal
will be used as the primary |
source of fuel. The Authority shall impose
appropriate |
financial penalties on any person who receives financing from
|
the State Authority for environmental facilities based on a |
commitment to
use Illinois coal as the primary source of fuel |
at a new coal-fired electric
utility steam generating plant or |
new coal-fired industrial boiler and later
uses a non-Illinois |
coal as the primary source of fuel.
|
(e) It is the intent of the General Assembly that the |
Authority give
special consideration to projects which involve |
|
a reduction in volume of
hazardous waste products generated, or |
the recycling, re-use, reclamation,
or treatment of hazardous |
waste.
|
(f) This Act shall be liberally construed to accomplish |
the
intentions expressed herein.
|
(Source: P.A. 83-1362; 83-1442.)
|
(20 ILCS 3515/3) (from Ch. 127, par. 723)
|
Sec. 3. Definitions. In this Act, unless the context |
otherwise
clearly requires, the terms used herein shall have |
the meanings ascribed
to them as follows:
|
(a) "Bonds" means any bonds, notes, debentures, temporary, |
interim
or permanent certificates of indebtedness or other |
obligations
evidencing indebtedness.
|
(b) "Directing body" means the members of the State |
authority.
|
(c) "Environmental facility" or "facilities" means any |
land,
interest in land, building, structure, facility, system, |
fixture,
improvement, appurtenance, machinery, equipment or |
any combination
thereof, and all real and personal property |
deemed necessary therewith,
having to do with or the primary |
purpose of which is, reducing, controlling or
preventing |
pollution, or reclaiming surface mined land. Environmental
|
facilities may be located anywhere in this State and may |
include those
facilities or processes used to (i) remove |
potential pollutants from coal prior
to combustion, (ii) reduce |
|
the volume or composition of hazardous waste by
changing or |
replacing manufacturing equipment or processes, (iii) recycle
|
hazardous waste, or (iv) recover resources from hazardous |
waste. Environmental
facilities may also include (i) solar |
collectors, solar storage mechanisms and
solar energy systems, |
as defined in Section 10-5 of the Property Tax Code; (ii) |
facilities designed to collect,
store, transfer, or |
distribute, for residential, commercial or industrial use,
|
heat energy which is a by-product of industrial or energy |
generation processes
and which would otherwise be wasted; (iii) |
facilities designed to remove
pollutants from emissions that |
result from the combustion of coal; and (iv)
facilities for the |
combustion of coal in a fluidized bed boiler. Environmental
|
facilities may be located outside of the State, provided that |
the environmental facility must either (i) be owned, operated, |
leased, or managed by an entity located within the State or an |
entity affiliated with an entity located within the State or |
(ii) substantially reduce, control, and prevent the |
environmental damage and pollution within the State. |
Environmental
facilities include landfill gas recovery |
facilities, as defined in the Illinois
Environmental |
Protection Act.
|
Environmental facilities do not include any land, interest |
in land,
buildings, structure, facility, system, fixture, |
improvement,
appurtenance, machinery, equipment or any |
combination thereof, and all real
and personal property deemed |
|
necessary therewith, having to do with a
hazardous waste |
disposal site, except where such land, interest in land,
|
buildings, structure, facility, system, fixture, improvement, |
appurtenance,
machinery, equipment, real or personal property |
are used for the management
or recovery of gas generated by a |
hazardous waste disposal site or are used
for recycling, |
reclamation, tank storage or treatment in tanks which occurs
on |
the same site as a hazardous waste disposal site.
|
(d) "Finance" or "financing" means the issuing of revenue |
bonds
pursuant to Section 9 of this Act by the State authority |
for the purpose
of using the proceeds to pay project costs for |
an environmental or
hazardous waste treatment facility |
including one in or to which title at all
times remains in a |
person other than the State authority, in which case the
bonds |
of the Authority are secured by a pledge of one or more notes,
|
debentures, bonds or other obligations, secured or unsecured, |
of any person.
|
(e) "Person" means any individual, partnership, |
copartnership, firm,
company, corporation (including public |
utilities), association, joint
stock company, trust, estate, |
political subdivision, state agency, or
any other legal entity, |
or their legal representative, agent or assigns.
|
(f) "Pollution" means any form of environmental pollution |
including,
but not limited to, water pollution, air pollution, |
land pollution,
solid waste pollution, thermal pollution, |
radiation contamination, or
noise pollution as determined by |
|
the various standards prescribed by
this state or the federal |
government and including but not limited to,
anything which is |
considered as pollution or environmental damage in the
|
Environmental Protection Act, approved June 29, 1970, as now or
|
hereafter amended.
|
(g) "Project costs" as applied to environmental or |
hazardous waste
treatment facilities financed under this Act |
means and includes the sum
total of all reasonable or necessary |
costs incidental to the acquisition,
construction, |
reconstruction, repair, alteration, improvement and extension
|
of such environmental or hazardous waste treatment facilities |
including
without limitation the cost of studies and surveys; |
plans, specifications,
architectural and engineering services; |
legal, organization, marketing or other
special services; |
financing, acquisition, demolition, construction, equipment
|
and site development of new and rehabilitated buildings; |
rehabilitation,
reconstruction, repair or remodeling of |
existing buildings and all other
necessary and incidental |
expenses including an initial bond and interest
reserve |
together with interest on bonds issued to finance such |
environmental or
hazardous waste treatment facilities to a date |
6 months subsequent to the
estimated date of completion.
|
(h) "State authority" or "authority" means the Illinois
|
Finance Authority created by the Illinois Finance
Authority |
Act.
|
(i) "Small business" or "small businesses" means those |
|
commercial
and manufacturing entities which at the time of |
their application to the
authority meet those criteria, as |
interpreted and applied by the State
authority, for definition |
as a "small business" established for the
Small Business |
Administration and set forth as Section 121.3-10 of Part
121 of |
Title 13 of the Code of Federal Regulations as such Section is |
in
effect on the effective date of this amendatory Act of 1975.
|
(j) "New coal-fired electric utility steam generating |
plants" and "new
coal-fired industrial boilers" means those |
plants and boilers on which
construction begins after the |
effective date of this amendatory Act of 1981.
|
(k) "Hazardous waste treatment facility" means any land, |
interest in
land, building, structure, facility, system, |
fixture, improvement,
appurtenance, machinery, equipment, or |
any combination thereof, and all
real and personal property |
deemed necessary therewith, the primary purpose
of which is to |
recycle, incinerate, or physically, chemically, biologically
|
or otherwise treat hazardous wastes, or to reduce the |
production of
hazardous wastes by changing or replacing |
manufacturing equipment or
processes, and which meets the |
requirements of the Environmental Protection
Act and all |
regulations adopted thereunder.
|
(l) The term "significant presence" means the existence |
within the State of the national or regional headquarters of an |
entity or group or such other facility of an entity or group of |
entities where a significant amount of the business functions |
|
are performed for such entity or group of entities. |
(Source: P.A. 93-205, eff. 1-1-04.)
|
(20 ILCS 3515/7.5 new) |
Sec. 7.5. Required findings for environmental facilities |
located outside the State. The State authority may approve an |
application to finance or refinance environmental facilities |
located outside of the State only after it has made either of |
the following findings with respect to such financing or |
refinancing, all of which shall be deemed conclusive: |
(1) that all of the following conditions exist: |
(A) the entity financing or refinancing an |
environmental facility located outside the State, or |
an affiliate thereof, is also engaged in the financing |
or refinancing of an environmental facility located |
within the State or, alternately, the entity seeking |
the financing or refinancing, or an affiliate thereof, |
maintains a significant presence within the State; |
(B) financing or refinancing the out-of-state |
environmental facility would promote the interests of |
the State for the benefit of the health, welfare, |
safety, trade, commerce, industry, and economy of the |
people of the State by reducing, controlling, or |
preventing environmental damage and pollution within |
the State or lowering the cost of environmental |
facilities within the State by reducing the cost of |
|
financing, refinancing, or operating environmental |
facilities; and |
(C) after giving effect to the financing or |
refinancing of the out-of-state environmental |
facility, the State authority shall have the ability to |
issue at least an additional $250,000,000 in bonds |
under Section 9 of this Act; or |
(2) that financing or refinancing the out-of-state |
environmental facility will substantially reduce, control, |
or prevent environmental damage within the State. |
The State authority shall not provide financing or |
refinancing for any project, or portion thereof, located |
outside the boundaries of the United States of America. |
Notwithstanding any other provision of this Act, the |
Authority shall not provide financing or refinancing that uses |
State volume cap under Section 146 of the Internal Revenue Code |
of 1986, as amended, except as permitted under said Section |
146, or constitutes an indebtedness or obligation, general or |
moral, or a pledge of the full faith or loan of credit of the |
State for any project, or portion thereof, that is located |
outside of the State.
|
Section 13. The Illinois Power Agency Act is amended by |
changing Section 1-10 as follows:
|
(20 ILCS 3855/1-10)
|
|
Sec. 1-10. Definitions. |
"Agency" means the Illinois Power Agency. |
"Agency loan agreement" means any agreement pursuant to |
which the Illinois Finance Authority agrees to loan the |
proceeds of revenue bonds issued with respect to a project to |
the Agency upon terms providing for loan repayment installments |
at least sufficient to pay when due all principal of, interest |
and premium, if any, on those revenue bonds, and providing for |
maintenance, insurance, and other matters in respect of the |
project. |
"Authority" means the Illinois Finance Authority. |
"Clean coal facility" means an electric generating |
facility that uses primarily coal as a feedstock and that |
captures and sequesters carbon dioxide emissions at the |
following levels: at least 50% of the total carbon dioxide |
emissions that the facility would otherwise emit if, at the |
time construction commences, the facility is scheduled to |
commence operation before 2016, at least 70% of the total |
carbon dioxide emissions that the facility would otherwise emit |
if, at the time construction commences, the facility is |
scheduled to commence operation during 2016 or 2017, and at |
least 90% of the total carbon dioxide emissions that the |
facility would otherwise emit if, at the time construction |
commences, the facility is scheduled to commence operation |
after 2017. The power block of the clean coal facility shall |
not exceed allowable emission rates for sulfur dioxide, |
|
nitrogen oxides, carbon monoxide, particulates and mercury for |
a natural gas-fired combined-cycle facility the same size as |
and in the same location as the clean coal facility at the time |
the clean coal facility obtains an approved air permit. All |
coal used by a clean coal facility shall have high volatile |
bituminous rank and greater than 1.7 pounds of sulfur per |
million btu content, unless the clean coal facility does not |
use gasification technology and was operating as a conventional |
coal-fired electric generating facility on June 1, 2009 (the |
effective date of Public Act 95-1027). |
"Clean coal SNG brownfield facility" means a facility that |
(1) has commenced construction by July 1, 2015 on an urban |
brownfield site in a municipality with at least 1,000,000 |
residents; (2) uses a gasification process to produce |
substitute natural gas; (3) uses coal as at least 50% of the |
total feedstock over the term of any sourcing agreement with a |
utility and the remainder of the feedstock may be either |
petroleum coke or coal, with all such coal having a high |
bituminous rank and greater than 1.7 pounds of sulfur per |
million Btu content unless the facility reasonably determines
|
that it is necessary to use additional petroleum coke to
|
deliver additional consumer savings, in which case the
facility |
shall use coal for at least 35% of the total
feedstock over the |
term of any sourcing agreement; and (4) captures and sequesters |
at least 85% of the total carbon dioxide emissions that the |
facility would otherwise emit. |
|
"Clean coal SNG facility" means a facility that uses a |
gasification process to produce substitute natural gas, that |
sequesters at least 90% of the total carbon dioxide emissions |
that the facility would otherwise emit, that uses at least 90% |
coal as a feedstock, with all such coal having a high |
bituminous rank and greater than 1.7 pounds of sulfur per |
million btu content, and that has a valid and effective permit |
to construct emission sources and air pollution control |
equipment and approval with respect to the federal regulations |
for Prevention of Significant Deterioration of Air Quality |
(PSD) for the plant pursuant to the federal Clean Air Act; |
provided, however, a clean coal SNG brownfield facility shall |
not be a clean coal SNG facility. |
"Commission" means the Illinois Commerce Commission. |
"Costs incurred in connection with the development and |
construction of a facility" means: |
(1) the cost of acquisition of all real property, |
fixtures, and improvements in connection therewith and |
equipment, personal property, and other property, rights, |
and easements acquired that are deemed necessary for the |
operation and maintenance of the facility; |
(2) financing costs with respect to bonds, notes, and |
other evidences of indebtedness of the Agency; |
(3) all origination, commitment, utilization, |
facility, placement, underwriting, syndication, credit |
enhancement, and rating agency fees; |
|
(4) engineering, design, procurement, consulting, |
legal, accounting, title insurance, survey, appraisal, |
escrow, trustee, collateral agency, interest rate hedging, |
interest rate swap, capitalized interest, contingency, as |
required by lenders, and other financing costs, and other |
expenses for professional services; and |
(5) the costs of plans, specifications, site study and |
investigation, installation, surveys, other Agency costs |
and estimates of costs, and other expenses necessary or |
incidental to determining the feasibility of any project, |
together with such other expenses as may be necessary or |
incidental to the financing, insuring, acquisition, and |
construction of a specific project and starting up, |
commissioning, and placing that project in operation. |
"Department" means the Department of Commerce and Economic |
Opportunity. |
"Director" means the Director of the Illinois Power Agency. |
"Demand-response" means measures that decrease peak |
electricity demand or shift demand from peak to off-peak |
periods. |
"Distributed renewable energy generation device" means a |
device that is: |
(1) powered by wind, solar thermal energy, |
photovoltaic cells and panels, biodiesel, crops and |
untreated and unadulterated organic waste biomass, tree |
waste, and hydropower that does not involve new |
|
construction or significant expansion of hydropower dams; |
(2) interconnected at the distribution system level of |
either an electric utility as defined in this Section, an |
alternative retail electric supplier as defined in Section |
16-102 of the Public Utilities Act, a municipal utility as |
defined in Section 3-105 of the Public Utilities Act, or a |
rural electric cooperative as defined in Section 3-119 of |
the Public Utilities Act; |
(3) located on the customer side of the customer's |
electric meter and is primarily used to offset that |
customer's electricity load; and |
(4) limited in nameplate capacity to no more than 2,000 |
kilowatts. |
"Energy efficiency" means measures that reduce the amount |
of electricity or natural gas required to achieve a given end |
use. "Energy efficiency" also includes measures that reduce the |
total Btus of electricity and natural gas needed to meet the |
end use or uses. |
"Electric utility" has the same definition as found in |
Section 16-102 of the Public Utilities Act. |
"Facility" means an electric generating unit or a |
co-generating unit that produces electricity along with |
related equipment necessary to connect the facility to an |
electric transmission or distribution system. |
"Governmental aggregator" means one or more units of local |
government that individually or collectively procure |
|
electricity to serve residential retail electrical loads |
located within its or their jurisdiction. |
"Local government" means a unit of local government as |
defined in Section 1 of Article VII of the Illinois |
Constitution. |
"Municipality" means a city, village, or incorporated |
town. |
"Person" means any natural person, firm, partnership, |
corporation, either domestic or foreign, company, association, |
limited liability company, joint stock company, or association |
and includes any trustee, receiver, assignee, or personal |
representative thereof. |
"Project" means the planning, bidding, and construction of |
a facility. |
"Public utility" has the same definition as found in |
Section 3-105 of the Public Utilities Act. |
"Real property" means any interest in land together with |
all structures, fixtures, and improvements thereon, including |
lands under water and riparian rights, any easements, |
covenants, licenses, leases, rights-of-way, uses, and other |
interests, together with any liens, judgments, mortgages, or |
other claims or security interests related to real property. |
"Renewable energy credit" means a tradable credit that |
represents the environmental attributes of a certain amount of |
energy produced from a renewable energy resource. |
"Renewable energy resources" includes energy and its |
|
associated renewable energy credit or renewable energy credits |
from wind, solar thermal energy, photovoltaic cells and panels, |
biodiesel, anaerobic digestion, crops and untreated and |
unadulterated organic waste biomass, tree waste, hydropower |
that does not involve new construction or significant expansion |
of hydropower dams, and other alternative sources of |
environmentally preferable energy. For purposes of this Act, |
landfill gas produced in the State is considered a renewable |
energy resource. "Renewable energy resources" does not include |
the incineration or burning of tires, garbage, general |
household, institutional, and commercial waste, industrial |
lunchroom or office waste, landscape waste other than tree |
waste, railroad crossties, utility poles, or construction or |
demolition debris, other than untreated and unadulterated |
waste wood. |
"Revenue bond" means any bond, note, or other evidence of |
indebtedness issued by the Authority, the principal and |
interest of which is payable solely from revenues or income |
derived from any project or activity of the Agency. |
"Sequester" means permanent storage of carbon dioxide by |
injecting it into a saline aquifer, a depleted gas reservoir, |
or an oil reservoir, directly or through an enhanced oil |
recovery process that may involve intermediate storage, |
regardless of whether these activities are conducted by a clean |
coal facility, a clean coal SNG facility, a clean coal SNG |
brownfield facility, or a party with which a clean coal |
|
facility, clean coal SNG facility, or clean coal SNG brownfield |
facility has contracted for such purposes. |
"Sourcing agreement" means (i) in the case of an electric |
utility, an agreement between the owner of a clean coal |
facility and such electric utility, which agreement shall have |
terms and conditions meeting the requirements of paragraph (3) |
of subsection (d) of Section 1-75, (ii) in the case of an |
alternative retail electric supplier, an agreement between the |
owner of a clean coal facility and such alternative retail |
electric supplier, which agreement shall have terms and |
conditions meeting the requirements of Section 16-115(d)(5) of |
the Public Utilities Act, and (iii) in case of a gas utility, |
an agreement between the owner of a clean coal SNG brownfield |
facility and the gas utility, which agreement shall have the |
terms and conditions meeting the requirements of subsection |
(h-1) of Section 9-220 of the Public Utilities Act. |
"Substitute natural gas" or "SNG" means a gas manufactured |
by gasification of hydrocarbon feedstock, which is |
substantially interchangeable in use and distribution with |
conventional natural gas. |
"Total resource cost test" or "TRC test" means a standard |
that is met if, for an investment in energy efficiency or |
demand-response measures, the benefit-cost ratio is greater |
than one. The benefit-cost ratio is the ratio of the net |
present value of the total benefits of the program to the net |
present value of the total costs as calculated over the |
|
lifetime of the measures. A total resource cost test compares |
the sum of avoided electric utility costs, representing the |
benefits that accrue to the system and the participant in the |
delivery of those efficiency measures, as well as other |
quantifiable societal benefits, including avoided natural gas |
utility costs, to the sum of all incremental costs of end-use |
measures that are implemented due to the program (including |
both utility and participant contributions), plus costs to |
administer, deliver, and evaluate each demand-side program, to |
quantify the net savings obtained by substituting the |
demand-side program for supply resources. In calculating |
avoided costs of power and energy that an electric utility |
would otherwise have had to acquire, reasonable estimates shall |
be included of financial costs likely to be imposed by future |
regulations and legislation on emissions of greenhouse gases.
|
(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; |
96-784, eff. 8-28-09; 96-1000, eff. 7-2-10; 97-96, eff. |
7-13-11; 97-239, eff. 8-2-11; 97-491, eff. 8-22-11; 97-616, |
eff. 10-26-11; 97-813, eff. 7-13-12.)
|
Section 15. The Illinois Procurement Code is amended by |
changing Sections 1-10 and 53-25 as follows:
|
(30 ILCS 500/1-10)
|
Sec. 1-10. Application.
|
(a) This Code applies only to procurements for which |
|
contractors were first
solicited on or after July 1, 1998. This |
Code shall not be construed to affect
or impair any contract, |
or any provision of a contract, entered into based on a
|
solicitation prior to the implementation date of this Code as |
described in
Article 99, including but not limited to any |
covenant entered into with respect
to any revenue bonds or |
similar instruments.
All procurements for which contracts are |
solicited between the effective date
of Articles 50 and 99 and |
July 1, 1998 shall be substantially in accordance
with this |
Code and its intent.
|
(b) This Code shall apply regardless of the source of the |
funds with which
the contracts are paid, including federal |
assistance moneys.
This Code shall
not apply to:
|
(1) Contracts between the State and its political |
subdivisions or other
governments, or between State |
governmental bodies except as specifically
provided in |
this Code.
|
(2) Grants, except for the filing requirements of |
Section 20-80.
|
(3) Purchase of care.
|
(4) Hiring of an individual as employee and not as an |
independent
contractor, whether pursuant to an employment |
code or policy or by contract
directly with that |
individual.
|
(5) Collective bargaining contracts.
|
(6) Purchase of real estate, except that notice of this |
|
type of contract with a value of more than $25,000 must be |
published in the Procurement Bulletin within 7 days after |
the deed is recorded in the county of jurisdiction. The |
notice shall identify the real estate purchased, the names |
of all parties to the contract, the value of the contract, |
and the effective date of the contract.
|
(7) Contracts necessary to prepare for anticipated |
litigation, enforcement
actions, or investigations, |
provided
that the chief legal counsel to the Governor shall |
give his or her prior
approval when the procuring agency is |
one subject to the jurisdiction of the
Governor, and |
provided that the chief legal counsel of any other |
procuring
entity
subject to this Code shall give his or her |
prior approval when the procuring
entity is not one subject |
to the jurisdiction of the Governor.
|
(8) Contracts for
services to Northern Illinois |
University by a person, acting as
an independent |
contractor, who is qualified by education, experience, and
|
technical ability and is selected by negotiation for the |
purpose of providing
non-credit educational service |
activities or products by means of specialized
programs |
offered by the university.
|
(9) Procurement expenditures by the Illinois |
Conservation Foundation
when only private funds are used.
|
(10) Procurement expenditures by the Illinois Health |
Information Exchange Authority involving private funds |
|
from the Health Information Exchange Fund. "Private funds" |
means gifts, donations, and private grants. |
(11) Public-private agreements entered into according |
to the procurement requirements of Section 20 of the |
Public-Private Partnerships for Transportation Act and |
design-build agreements entered into according to the |
procurement requirements of Section 25 of the |
Public-Private Partnerships for Transportation Act. |
(12) Contracts for legal, financial, and other |
professional and artistic services entered into on or |
before December 31, 2018 by the Illinois Finance Authority |
in which the State of Illinois is not obligated. Such |
contracts shall be awarded through a competitive process |
authorized by the Board of the Illinois Finance Authority |
and are subject to Sections 5-30, 20-160, 50-13, 50-20, |
50-35, and 50-37 of this Code, as well as the final |
approval by the Board of the Illinois Finance Authority of |
the terms of the contract. |
Notwithstanding any other provision of law, contracts |
entered into under item (12) of this subsection (b) shall be |
published in the Procurement Bulletin within 14 days after |
contract execution. The chief procurement officer shall |
prescribe the form and content of the notice. The Illinois |
Finance Authority shall provide the chief procurement officer, |
on a monthly basis, in the form and content prescribed by the |
chief procurement officer, a report of contracts that are |
|
related to the procurement of goods and services identified in |
item (12) of this subsection (b). At a minimum, this report |
shall include the name of the contractor, a description of the |
supply or service provided, the total amount of the contract, |
the term of the contract, and the exception to the Code |
utilized. A copy of each of these contracts shall be made |
available to the chief procurement officer immediately upon |
request. The chief procurement officer shall submit a report to |
the Governor and General Assembly no later than November 1 of |
each year that shall include, at a minimum, an annual summary |
of the monthly information reported to the chief procurement |
officer. |
(c) This Code does not apply to the electric power |
procurement process provided for under Section 1-75 of the |
Illinois Power Agency Act and Section 16-111.5 of the Public |
Utilities Act. |
(d) Except for Section 20-160 and Article 50 of this Code, |
and as expressly required by Section 9.1 of the Illinois |
Lottery Law, the provisions of this Code do not apply to the |
procurement process provided for under Section 9.1 of the |
Illinois Lottery Law. |
(e) This Code does not apply to the process used by the |
Capital Development Board to retain a person or entity to |
assist the Capital Development Board with its duties related to |
the determination of costs of a clean coal SNG brownfield |
facility, as defined by Section 1-10 of the Illinois Power |
|
Agency Act, as required in subsection (h-3) of Section 9-220 of |
the Public Utilities Act, including calculating the range of |
capital costs, the range of operating and maintenance costs, or |
the sequestration costs or monitoring the construction of clean |
coal SNG brownfield facility for the full duration of |
construction. |
(f) This Code does not apply to the process used by the |
Illinois Power Agency to retain a mediator to mediate sourcing |
agreement disputes between gas utilities and the clean coal SNG |
brownfield facility, as defined in Section 1-10 of the Illinois |
Power Agency Act, as required under subsection (h-1) of Section |
9-220 of the Public Utilities Act. |
(g) This Code does not apply to the processes used by the |
Illinois Power Agency to retain a mediator to mediate contract |
disputes between gas utilities and the clean coal SNG facility |
and to retain an expert to assist in the review of contracts |
under subsection (h) of Section 9-220 of the Public Utilities |
Act. This Code does not apply to the process used by the |
Illinois Commerce Commission to retain an expert to assist in |
determining the actual incurred costs of the clean coal SNG |
facility and the reasonableness of those costs as required |
under subsection (h) of Section 9-220 of the Public Utilities |
Act. |
(h) This Code does not apply to the process to procure or |
contracts entered into in accordance with Sections 11-5.2 and |
11-5.3 of the Illinois Public Aid Code. |
|
(i) (h) Each chief procurement officer may access records |
necessary to review whether a contract, purchase, or other |
expenditure is or is not subject to the provisions of this |
Code, unless such records would be subject to attorney-client |
privilege. |
(Source: P.A. 96-840, eff. 12-23-09; 96-1331, eff. 7-27-10; |
97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-502, eff. 8-23-11; |
97-689, eff. 6-14-12; 97-813, eff. 7-13-12; 97-895, eff. |
8-3-12; revised 8-23-12.)
|
(30 ILCS 500/53-25)
|
Sec. 53-25. Public institutions of higher education. |
(a) Each public
institution of higher education may enter |
into concessions, including the
assignment, license, sale, or |
transfer of interests in or rights to
discoveries, inventions, |
patents, or copyrightable works, for property,
whether |
tangible or intangible, over which it has jurisdiction. |
Concessions
shall be reduced to writing and shall be awarded at |
the discretion of the
institution with jurisdiction over the |
property. The duration and terms of
concessions and leases |
shall be at the discretion of the institution with
jurisdiction |
over the property. Notice of the award of a concession shall be
|
published in the higher education volume of the Illinois |
Procurement Bulletin.
|
(b) The duration and terms of concessions and leases for |
personal property shall be at the discretion of the institution |
|
with jurisdiction over the property. |
(c) Notwithstanding any other provision of law, if the |
Illinois Finance Authority issues bonds for the financing of |
buildings, structures, or facilities that are determined by the |
governing board of a public institution of higher education to |
be either required by or necessary for the use or benefit of |
that public institution of higher education, then the duration |
of any lease for real property entered into by that public |
institution of higher education, as lessee or lessor, in |
connection with the issuance of those bonds shall be at the |
discretion of that public institution of higher education. |
(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
|
Section 20. The Illinois Municipal Code is amended by |
changing Section 11-20-12 as follows:
|
(65 ILCS 5/11-20-12) (from Ch. 24, par. 11-20-12)
|
Sec. 11-20-12. Removal of infected trees. |
(a) The corporate authorities of each municipality may |
provide for the treatment or
removal of elm trees infected with |
Dutch elm disease or ash trees infected with the emerald ash |
borer (Agrilus planipennis Fairmaire) from any parcel of |
private property within the municipality if the owners of that |
parcel, after reasonable notice, refuse or neglect to treat or |
remove the infected trees. The municipality may collect, from |
the owners of the parcel, the reasonable removal cost. |
|
(b) The municipality's removal cost under this Section is a |
lien upon the underlying parcel in accordance with Section |
11-20-15. |
(c) For the purpose of this Section, "removal cost" means |
the total cost of the removal of the infected trees. |
"Treatment" means the administration, by environmentally |
sensitive processes and methods, of products and materials |
proven by academic research to protect elm and ash trees from |
an invasive disease in order to prevent or reverse the damage |
and preserve the trees.
|
(d) In the case of an abandoned residential property as |
defined in Section 11-20-15.1, the municipality may elect to |
obtain a lien for the removal cost pursuant to Section |
11-20-15.1, in which case the provisions of Section 11-20-15.1 |
shall be the exclusive remedy for the removal cost. |
The provisions of this subsection (d), other than this |
sentence, are inoperative upon certification by the Secretary |
of the Illinois Department of Financial and Professional |
Regulation, after consultation with the United States |
Department of Housing and Urban Development, that the Mortgage |
Electronic Registration System program is effectively |
registering substantially all mortgaged residential properties |
located in the State of Illinois, is available for access by |
all municipalities located in the State of Illinois without |
charge to them, and such registration includes the telephone |
number for the mortgage servicer. |
|
(Source: P.A. 95-183, eff. 8-14-07; 96-462, eff. 8-14-09; |
96-856, eff. 3-1-10.)
|
Section 25. The Public Utilities Act is amended by changing |
Sections 8-103 and 8-104 as follows:
|
(220 ILCS 5/8-103)
|
Sec. 8-103. Energy efficiency and demand-response |
measures. |
(a) It is the policy of the State that electric utilities |
are required to use cost-effective energy efficiency and |
demand-response measures to reduce delivery load. Requiring |
investment in cost-effective energy efficiency and |
demand-response measures will reduce direct and indirect costs |
to consumers by decreasing environmental impacts and by |
avoiding or delaying the need for new generation, transmission, |
and distribution infrastructure. It serves the public interest |
to allow electric utilities to recover costs for reasonably and |
prudently incurred expenses for energy efficiency and |
demand-response measures. As used in this Section, |
"cost-effective" means that the measures satisfy the total |
resource cost test. The low-income measures described in |
subsection (f)(4) of this Section shall not be required to meet |
the total resource cost test. For purposes of this Section, the |
terms "energy-efficiency", "demand-response", "electric |
utility", and "total resource cost test" shall have the |
|
meanings set forth in the Illinois Power Agency Act. For |
purposes of this Section, the amount per kilowatthour means the |
total amount paid for electric service expressed on a per |
kilowatthour basis. For purposes of this Section, the total |
amount paid for electric service includes without limitation |
estimated amounts paid for supply, transmission, distribution, |
surcharges, and add-on-taxes. |
(b) Electric utilities shall implement cost-effective |
energy efficiency measures to meet the following incremental |
annual energy savings goals: |
(1) 0.2% of energy delivered in the year commencing |
June 1, 2008; |
(2) 0.4% of energy delivered in the year commencing |
June 1, 2009; |
(3) 0.6% of energy delivered in the year commencing |
June 1, 2010; |
(4) 0.8% of energy delivered in the year commencing |
June 1, 2011; |
(5) 1% of energy delivered in the year commencing June |
1, 2012; |
(6) 1.4% of energy delivered in the year commencing |
June 1, 2013; |
(7) 1.8% of energy delivered in the year commencing |
June 1, 2014; and |
(8) 2% of energy delivered in the year commencing June |
1, 2015 and each year thereafter. |
|
Electric utilities may comply with this subsection (b) by |
meeting the annual incremental savings goal in the applicable |
year or by showing that the total cumulative annual savings |
within a 3-year planning period associated with measures |
implemented after May 31, 2014 was equal to the sum of each |
annual incremental savings requirement from May 31, 2014 |
through the end of the applicable year. |
(c) Electric utilities shall implement cost-effective |
demand-response measures to reduce peak demand by 0.1% over the |
prior year for eligible retail customers, as defined in Section |
16-111.5 of this Act, and for customers that elect hourly |
service from the utility pursuant to Section 16-107 of this |
Act, provided those customers have not been declared |
competitive. This requirement commences June 1, 2008 and |
continues for 10 years. |
(d) Notwithstanding the requirements of subsections (b) |
and (c) of this Section, an electric utility shall reduce the |
amount of energy efficiency and demand-response measures |
implemented over a 3-year planning period in any single year by |
an amount necessary to limit the estimated average annual |
increase in the amounts paid by retail customers in connection |
with electric service due to the cost of those measures to: |
(1) in 2008, no more than 0.5% of the amount paid per |
kilowatthour by those customers during the year ending May |
31, 2007; |
(2) in 2009, the greater of an additional 0.5% of the |
|
amount paid per kilowatthour by those customers during the |
year ending May 31, 2008 or 1% of the amount paid per |
kilowatthour by those customers during the year ending May |
31, 2007; |
(3) in 2010, the greater of an additional 0.5% of the |
amount paid per kilowatthour by those customers during the |
year ending May 31, 2009 or 1.5% of the amount paid per |
kilowatthour by those customers during the year ending May |
31, 2007; |
(4) in 2011, the greater of an additional 0.5% of the |
amount paid per kilowatthour by those customers during the |
year ending May 31, 2010 or 2% of the amount paid per |
kilowatthour by those customers during the year ending May |
31, 2007; and
|
(5) thereafter, the amount of energy efficiency and |
demand-response measures implemented for any single year |
shall be reduced by an amount necessary to limit the |
estimated average net increase due to the cost of these |
measures included in the amounts paid by eligible retail |
customers in connection with electric service to no more |
than the greater of 2.015% of the amount paid per |
kilowatthour by those customers during the year ending May |
31, 2007 or the incremental amount per kilowatthour paid |
for these measures in 2011.
|
No later than June 30, 2011, the Commission shall review |
the limitation on the amount of energy efficiency and |
|
demand-response measures implemented pursuant to this Section |
and report to the General Assembly its findings as to whether |
that limitation unduly constrains the procurement of energy |
efficiency and demand-response measures. |
(e) Electric utilities shall be responsible for overseeing |
the design, development, and filing of energy efficiency and |
demand-response plans with the Commission. Electric utilities |
shall implement 100% of the demand-response measures in the |
plans. Electric utilities shall implement 75% of the energy |
efficiency measures approved by the Commission, and may, as |
part of that implementation, outsource various aspects of |
program development and implementation. The remaining 25% of |
those energy efficiency measures approved by the Commission |
shall be implemented by the Department of Commerce and Economic |
Opportunity, and must be designed in conjunction with the |
utility and the filing process. The Department may outsource |
development and implementation of energy efficiency measures. |
A minimum of 10% of the entire portfolio of cost-effective |
energy efficiency measures shall be procured from units of |
local government, municipal corporations, school districts, |
and community college districts. The Department shall |
coordinate the implementation of these measures. |
The apportionment of the dollars to cover the costs to |
implement the Department's share of the portfolio of energy |
efficiency measures shall be made to the Department once the |
Department has executed rebate agreements, grants, or |
|
contracts for energy efficiency measures and provided |
supporting documentation for those rebate agreements, grants, |
and contracts to the utility. The Department is authorized to |
adopt any rules necessary and prescribe procedures in order to |
ensure compliance by applicants in carrying out the purposes of |
rebate agreements for energy efficiency measures implemented |
by the Department made under this Section. |
The details of the measures implemented by the Department |
shall be submitted by the Department to the Commission in |
connection with the utility's filing regarding the energy |
efficiency and demand-response measures that the utility |
implements. |
A utility providing approved energy efficiency and |
demand-response measures in the State shall be permitted to |
recover costs of those measures through an automatic adjustment |
clause tariff filed with and approved by the Commission. The |
tariff shall be established outside the context of a general |
rate case. Each year the Commission shall initiate a review to |
reconcile any amounts collected with the actual costs and to |
determine the required adjustment to the annual tariff factor |
to match annual expenditures. |
Each utility shall include, in its recovery of costs, the |
costs estimated for both the utility's and the Department's |
implementation of energy efficiency and demand-response |
measures. Costs collected by the utility for measures |
implemented by the Department shall be submitted to the |
|
Department pursuant to Section 605-323 of the Civil |
Administrative Code of Illinois, shall be deposited into the |
Energy Efficiency Portfolio Standards Fund, and shall be used |
by the Department solely for the purpose of implementing these |
measures. A utility shall not be required to advance any moneys |
to the Department but only to forward such funds as it has |
collected. The Department shall report to the Commission on an |
annual basis regarding the costs actually incurred by the |
Department in the implementation of the measures. Any changes |
to the costs of energy efficiency measures as a result of plan |
modifications shall be appropriately reflected in amounts |
recovered by the utility and turned over to the Department. |
The portfolio of measures, administered by both the |
utilities and the Department, shall, in combination, be |
designed to achieve the annual savings targets described in |
subsections (b) and (c) of this Section, as modified by |
subsection (d) of this Section. |
The utility and the Department shall agree upon a |
reasonable portfolio of measures and determine the measurable |
corresponding percentage of the savings goals associated with |
measures implemented by the utility or Department. |
No utility shall be assessed a penalty under subsection (f) |
of this Section for failure to make a timely filing if that |
failure is the result of a lack of agreement with the |
Department with respect to the allocation of responsibilities |
or related costs or target assignments. In that case, the |
|
Department and the utility shall file their respective plans |
with the Commission and the Commission shall determine an |
appropriate division of measures and programs that meets the |
requirements of this Section. |
If the Department is unable to meet incremental annual |
performance goals for the portion of the portfolio implemented |
by the Department, then the utility and the Department shall |
jointly submit a modified filing to the Commission explaining |
the performance shortfall and recommending an appropriate |
course going forward, including any program modifications that |
may be appropriate in light of the evaluations conducted under |
item (7) of subsection (f) of this Section. In this case, the |
utility obligation to collect the Department's costs and turn |
over those funds to the Department under this subsection (e) |
shall continue only if the Commission approves the |
modifications to the plan proposed by the Department. |
(f) No later than November 15, 2007, each electric utility |
shall file an energy efficiency and demand-response plan with |
the Commission to meet the energy efficiency and |
demand-response standards for 2008 through 2010. No later than |
October 1, 2010, each electric utility shall file an energy |
efficiency and demand-response plan with the Commission to meet |
the energy efficiency and demand-response standards for 2011 |
through 2013. Every 3 years thereafter, each electric utility |
shall file, no later than September 1, an energy efficiency and |
demand-response plan with the Commission. If a utility does not |
|
file such a plan by September 1 of an applicable year, it shall |
face a penalty of $100,000 per day until the plan is filed. |
Each utility's plan shall set forth the utility's proposals to |
meet the utility's portion of the energy efficiency standards |
identified in subsection (b) and the demand-response standards |
identified in subsection (c) of this Section as modified by |
subsections (d) and (e), taking into account the unique |
circumstances of the utility's service territory. The |
Commission shall seek public comment on the utility's plan and |
shall issue an order approving or disapproving each plan within |
5 months after its submission. If the Commission disapproves a |
plan, the Commission shall, within 30 days, describe in detail |
the reasons for the disapproval and describe a path by which |
the utility may file a revised draft of the plan to address the |
Commission's concerns satisfactorily. If the utility does not |
refile with the Commission within 60 days, the utility shall be |
subject to penalties at a rate of $100,000 per day until the |
plan is filed. This process shall continue, and penalties shall |
accrue, until the utility has successfully filed a portfolio of |
energy efficiency and demand-response measures. Penalties |
shall be deposited into the Energy Efficiency Trust Fund. In |
submitting proposed energy efficiency and demand-response |
plans and funding levels to meet the savings goals adopted by |
this Act the utility shall: |
(1) Demonstrate that its proposed energy efficiency |
and demand-response measures will achieve the requirements |
|
that are identified in subsections (b) and (c) of this |
Section, as modified by subsections (d) and (e). |
(2) Present specific proposals to implement new |
building and appliance standards that have been placed into |
effect. |
(3) Present estimates of the total amount paid for |
electric service expressed on a per kilowatthour basis |
associated with the proposed portfolio of measures |
designed to meet the requirements that are identified in |
subsections (b) and (c) of this Section, as modified by |
subsections (d) and (e). |
(4) Coordinate with the Department to present a |
portfolio of energy efficiency measures proportionate to |
the share of total annual utility revenues in Illinois from |
households at or below 150% of the poverty level. The |
energy efficiency programs shall be targeted to households |
with incomes at or below 80% of area median income. |
(5) Demonstrate that its overall portfolio of energy |
efficiency and demand-response measures, not including |
programs covered by item (4) of this subsection (f), are |
cost-effective using the total resource cost test and |
represent a diverse cross-section of opportunities for |
customers of all rate classes to participate in the |
programs. |
(6) Include a proposed cost-recovery tariff mechanism |
to fund the proposed energy efficiency and demand-response |
|
measures and to ensure the recovery of the prudently and |
reasonably incurred costs of Commission-approved programs. |
(7) Provide for an annual independent evaluation of the |
performance of the cost-effectiveness of the utility's |
portfolio of measures and the Department's portfolio of |
measures, as well as a full review of the 3-year results of |
the broader net program impacts and, to the extent |
practical, for adjustment of the measures on a |
going-forward basis as a result of the evaluations. The |
resources dedicated to evaluation shall not exceed 3% of |
portfolio resources in any given year. |
(g) No more than 3% of energy efficiency and |
demand-response program revenue may be allocated for |
demonstration of breakthrough equipment and devices. |
(h) This Section does not apply to an electric utility that |
on December 31, 2005 provided electric service to fewer than |
100,000 customers in Illinois. |
(i) If, after 2 years, an electric utility fails to meet |
the efficiency standard specified in subsection (b) of this |
Section, as modified by subsections (d) and (e), it shall make |
a contribution to the Low-Income Home Energy Assistance |
Program. The combined total liability for failure to meet the |
goal shall be $1,000,000, which shall be assessed as follows: a |
large electric utility shall pay $665,000, and a medium |
electric utility shall pay $335,000. If, after 3 years, an |
electric utility fails to meet the efficiency standard |
|
specified in subsection (b) of this Section, as modified by |
subsections (d) and (e), it shall make a contribution to the |
Low-Income Home Energy Assistance Program. The combined total |
liability for failure to meet the goal shall be $1,000,000, |
which shall be assessed as follows: a large electric utility |
shall pay $665,000, and a medium electric utility shall pay |
$335,000. In addition, the responsibility for implementing the |
energy efficiency measures of the utility making the payment |
shall be transferred to the Illinois Power Agency if, after 3 |
years, or in any subsequent 3-year period, the utility fails to |
meet the efficiency standard specified in subsection (b) of |
this Section, as modified by subsections (d) and (e). The |
Agency shall implement a competitive procurement program to |
procure resources necessary to meet the standards specified in |
this Section as modified by subsections (d) and (e), with costs |
for those resources to be recovered in the same manner as |
products purchased through the procurement plan as provided in |
Section 16-111.5. The Director shall implement this |
requirement in connection with the procurement plan as provided |
in Section 16-111.5. |
For purposes of this Section, (i) a "large electric |
utility" is an electric utility that, on December 31, 2005, |
served more than 2,000,000 electric customers in Illinois; (ii) |
a "medium electric utility" is an electric utility that, on |
December 31, 2005, served 2,000,000 or fewer but more than |
100,000 electric customers in Illinois; and (iii) Illinois |
|
electric utilities that are affiliated by virtue of a common |
parent company are considered a single electric utility. |
(j) If, after 3 years, or any subsequent 3-year period, the |
Department fails to implement the Department's share of energy |
efficiency measures required by the standards in subsection |
(b), then the Illinois Power Agency may assume responsibility |
for and control of the Department's share of the required |
energy efficiency measures. The Agency shall implement a |
competitive procurement program to procure resources necessary |
to meet the standards specified in this Section, with the costs |
of these resources to be recovered in the same manner as |
provided for the Department in this Section.
|
(k) No electric utility shall be deemed to have failed to |
meet the energy efficiency standards to the extent any such |
failure is due to a failure of the Department or the Agency.
|
(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; |
96-1000, eff. 7-2-10; 97-616, eff. 10-26-11; 97-841, eff. |
7-20-12.)
|
(220 ILCS 5/8-104)
|
Sec. 8-104. Natural gas energy efficiency programs. |
(a) It is the policy of the State that natural gas |
utilities and the Department of Commerce and Economic |
Opportunity are required to use cost-effective energy |
efficiency to reduce direct and indirect costs to consumers. It |
serves the public interest to allow natural gas utilities to |
|
recover costs for reasonably and prudently incurred expenses |
for cost-effective energy efficiency measures. |
(b) For purposes of this Section, "energy efficiency" means |
measures that reduce the amount of energy required to achieve a |
given end use . "Energy efficiency" also includes measures that |
reduce the total Btus of electricity and natural gas needed to |
meet the end use or uses. "Cost-effective" and "cost-effective" |
means that the measures satisfy the total resource cost test |
which, for purposes of this Section, means a standard that is |
met if, for an investment in energy efficiency, the |
benefit-cost ratio is greater than one. The benefit-cost ratio |
is the ratio of the net present value of the total benefits of |
the measures to the net present value of the total costs as |
calculated over the lifetime of the measures. The total |
resource cost test compares the sum of avoided natural gas |
utility costs, representing the benefits that accrue to the |
system and the participant in the delivery of those efficiency |
measures, as well as other quantifiable societal benefits, |
including avoided electric utility costs, to the sum of all |
incremental costs of end use measures (including both utility |
and participant contributions), plus costs to administer, |
deliver, and evaluate each demand-side measure, to quantify the |
net savings obtained by substituting demand-side measures for |
supply resources. In calculating avoided costs, reasonable |
estimates shall be included for financial costs likely to be |
imposed by future regulation of emissions of greenhouse gases. |
|
The low-income programs described in item (4) of subsection (f) |
of this Section shall not be required to meet the total |
resource cost test. |
(c) Natural gas utilities shall implement cost-effective |
energy efficiency measures to meet at least the following |
natural gas savings requirements, which shall be based upon the |
total amount of gas delivered to retail customers, other than |
the customers described in subsection (m) of this Section, |
during calendar year 2009 multiplied by the applicable |
percentage. Natural gas utilities may comply with this Section |
by meeting the annual incremental savings goal in the |
applicable year or by showing that total cumulative annual |
savings within a 3-year planning period associated with |
measures implemented after May 31, 2011 were equal to the sum |
of each annual incremental savings requirement from May 31, |
2011 through the end of the applicable year: |
(1) 0.2% by May 31, 2012; |
(2) an additional 0.4% by May 31, 2013, increasing |
total savings to .6%; |
(3) an additional 0.6% by May 31, 2014, increasing |
total savings to 1.2%; |
(4) an additional 0.8% by May 31, 2015, increasing |
total savings to 2.0%; |
(5) an additional 1% by May 31, 2016, increasing total |
savings to 3.0%; |
(6) an additional 1.2% by May 31, 2017, increasing |
|
total savings to 4.2%; |
(7) an additional 1.4% by May 31, 2018, increasing |
total savings to 5.6%; |
(8) an additional 1.5% by May 31, 2019, increasing |
total savings to 7.1%; and |
(9) an additional 1.5% in each 12-month period |
thereafter. |
(d) Notwithstanding the requirements of subsection (c) of |
this Section, a natural gas utility shall limit the amount of |
energy efficiency implemented in any 3-year reporting period |
established by subsection (f) of Section 8-104 of this Act, by |
an amount necessary to limit the estimated average increase in |
the amounts paid by retail customers in connection with natural |
gas service to no more than 2% in the applicable 3-year |
reporting period. The energy savings requirements in |
subsection (c) of this Section may be reduced by the Commission |
for the subject plan, if the utility demonstrates by |
substantial evidence that it is highly unlikely that the |
requirements could be achieved without exceeding the |
applicable spending limits in any 3-year reporting period. No |
later than September 1, 2013, the Commission shall review the |
limitation on the amount of energy efficiency measures |
implemented pursuant to this Section and report to the General |
Assembly, in the report required by subsection (k) of this |
Section, its findings as to whether that limitation unduly |
constrains the procurement of energy efficiency measures. |
|
(e) Natural gas utilities shall be responsible for |
overseeing the design, development, and filing of their |
efficiency plans with the Commission. The utility shall utilize |
75% of the available funding associated with energy efficiency |
programs approved by the Commission, and may outsource various |
aspects of program development and implementation. The |
remaining 25% of available funding shall be used by the |
Department of Commerce and Economic Opportunity to implement |
energy efficiency measures that achieve no less than 20% of the |
requirements of subsection (c) of this Section. Such measures |
shall be designed in conjunction with the utility and approved |
by the Commission. The Department may outsource development and |
implementation of energy efficiency measures. A minimum of 10% |
of the entire portfolio of cost-effective energy efficiency |
measures shall be procured from local government, municipal |
corporations, school districts, and community college |
districts. Five percent of the entire portfolio of |
cost-effective energy efficiency measures may be granted to |
local government and municipal corporations for market |
transformation initiatives. The Department shall coordinate |
the implementation of these measures and shall integrate |
delivery of natural gas efficiency programs with electric |
efficiency programs delivered pursuant to Section 8-103 of this |
Act, unless the Department can show that integration is not |
feasible. |
The apportionment of the dollars to cover the costs to |
|
implement the Department's share of the portfolio of energy |
efficiency measures shall be made to the Department once the |
Department has executed rebate agreements, grants, or |
contracts for energy efficiency measures and provided |
supporting documentation for those rebate agreements, grants, |
and contracts to the utility. The Department is authorized to |
adopt any rules necessary and prescribe procedures in order to |
ensure compliance by applicants in carrying out the purposes of |
rebate agreements for energy efficiency measures implemented |
by the Department made under this Section. |
The details of the measures implemented by the Department |
shall be submitted by the Department to the Commission in |
connection with the utility's filing regarding the energy |
efficiency measures that the utility implements. |
A utility providing approved energy efficiency measures in |
this State shall be permitted to recover costs of those |
measures through an automatic adjustment clause tariff filed |
with and approved by the Commission. The tariff shall be |
established outside the context of a general rate case and |
shall be applicable to the utility's customers other than the |
customers described in subsection (m) of this Section. Each |
year the Commission shall initiate a review to reconcile any |
amounts collected with the actual costs and to determine the |
required adjustment to the annual tariff factor to match annual |
expenditures. |
Each utility shall include, in its recovery of costs, the |
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costs estimated for both the utility's and the Department's |
implementation of energy efficiency measures. Costs collected |
by the utility for measures implemented by the Department shall |
be submitted to the Department pursuant to Section 605-323 of |
the Civil Administrative Code of Illinois, shall be deposited |
into the Energy Efficiency Portfolio Standards Fund, and shall |
be used by the Department solely for the purpose of |
implementing these measures. A utility shall not be required to |
advance any moneys to the Department but only to forward such |
funds as it has collected. The Department shall report to the |
Commission on an annual basis regarding the costs actually |
incurred by the Department in the implementation of the |
measures. Any changes to the costs of energy efficiency |
measures as a result of plan modifications shall be |
appropriately reflected in amounts recovered by the utility and |
turned over to the Department. |
The portfolio of measures, administered by both the |
utilities and the Department, shall, in combination, be |
designed to achieve the annual energy savings requirements set |
forth in subsection (c) of this Section, as modified by |
subsection (d) of this Section. |
The utility and the Department shall agree upon a |
reasonable portfolio of measures and determine the measurable |
corresponding percentage of the savings goals associated with |
measures implemented by the Department. |
No utility shall be assessed a penalty under subsection (f) |
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of this Section for failure to make a timely filing if that |
failure is the result of a lack of agreement with the |
Department with respect to the allocation of responsibilities |
or related costs or target assignments. In that case, the |
Department and the utility shall file their respective plans |
with the Commission and the Commission shall determine an |
appropriate division of measures and programs that meets the |
requirements of this Section. |
If the Department is unable to meet performance |
requirements for the portion of the portfolio implemented by |
the Department, then the utility and the Department shall |
jointly submit a modified filing to the Commission explaining |
the performance shortfall and recommending an appropriate |
course going forward, including any program modifications that |
may be appropriate in light of the evaluations conducted under |
item (8) of subsection (f) of this Section. In this case, the |
utility obligation to collect the Department's costs and turn |
over those funds to the Department under this subsection (e) |
shall continue only if the Commission approves the |
modifications to the plan proposed by the Department. |
(f) No later than October 1, 2010, each gas utility shall |
file an energy efficiency plan with the Commission to meet the |
energy efficiency standards through May 31, 2014. Every 3 years |
thereafter, each utility shall file, no later than October 1, |
an energy efficiency plan with the Commission. If a utility |
does not file such a plan by October 1 of the applicable year, |
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then it shall face a penalty of $100,000 per day until the plan |
is filed. Each utility's plan shall set forth the utility's |
proposals to meet the utility's portion of the energy |
efficiency standards identified in subsection (c) of this |
Section, as modified by subsection (d) of this Section, taking |
into account the unique circumstances of the utility's service |
territory. The Commission shall seek public comment on the |
utility's plan and shall issue an order approving or |
disapproving each plan. If the Commission disapproves a plan, |
the Commission shall, within 30 days, describe in detail the |
reasons for the disapproval and describe a path by which the |
utility may file a revised draft of the plan to address the |
Commission's concerns satisfactorily. If the utility does not |
refile with the Commission within 60 days after the |
disapproval, the utility shall be subject to penalties at a |
rate of $100,000 per day until the plan is filed. This process |
shall continue, and penalties shall accrue, until the utility |
has successfully filed a portfolio of energy efficiency |
measures. Penalties shall be deposited into the Energy |
Efficiency Trust Fund and the cost of any such penalties may |
not be recovered from ratepayers. In submitting proposed energy |
efficiency plans and funding levels to meet the savings goals |
adopted by this Act the utility shall: |
(1) Demonstrate that its proposed energy efficiency |
measures will achieve the requirements that are identified |
in subsection (c) of this Section, as modified by |
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subsection (d) of this Section. |
(2) Present specific proposals to implement new |
building and appliance standards that have been placed into |
effect. |
(3) Present estimates of the total amount paid for gas |
service expressed on a per therm basis associated with the |
proposed portfolio of measures designed to meet the |
requirements that are identified in subsection (c) of this |
Section, as modified by subsection (d) of this Section. |
(4) Coordinate with the Department to present a |
portfolio of energy efficiency measures proportionate to |
the share of total annual utility revenues in Illinois from |
households at or below 150% of the poverty level. Such |
programs shall be targeted to households with incomes at or |
below 80% of area median income. |
(5) Demonstrate that its overall portfolio of energy |
efficiency measures, not including programs covered by |
item (4) of this subsection (f), are cost-effective using |
the total resource cost test and represent a diverse cross |
section of opportunities for customers of all rate classes |
to participate in the programs. |
(6) Demonstrate that a gas utility affiliated with an |
electric utility that is required to comply with Section |
8-103 of this Act has integrated gas and electric |
efficiency measures into a single program that reduces |
program or participant costs and appropriately allocates |
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costs to gas and electric ratepayers. The Department shall |
integrate all gas and electric programs it delivers in any |
such utilities' service territories, unless the Department |
can show that integration is not feasible or appropriate. |
(7) Include a proposed cost recovery tariff mechanism |
to fund the proposed energy efficiency measures and to |
ensure the recovery of the prudently and reasonably |
incurred costs of Commission-approved programs. |
(8) Provide for quarterly status reports tracking |
implementation of and expenditures for the utility's |
portfolio of measures and the Department's portfolio of |
measures, an annual independent review, and a full |
independent evaluation of the 3-year results of the |
performance and the cost-effectiveness of the utility's |
and Department's portfolios of measures and broader net |
program impacts and, to the extent practical, for |
adjustment of the measures on a going forward basis as a |
result of the evaluations. The resources dedicated to |
evaluation shall not exceed 3% of portfolio resources in |
any given 3-year period. |
(g) No more than 3% of expenditures on energy efficiency |
measures may be allocated for demonstration of breakthrough |
equipment and devices. |
(h) Illinois natural gas utilities that are affiliated by |
virtue of a common parent company may, at the utilities' |
request, be considered a single natural gas utility for |
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purposes of complying with this Section. |
(i) If, after 3 years, a gas utility fails to meet the |
efficiency standard specified in subsection (c) of this Section |
as modified by subsection (d), then it shall make a |
contribution to the Low-Income Home Energy Assistance Program. |
The total liability for failure to meet the goal shall be |
assessed as follows: |
(1) a large gas utility shall pay $600,000; |
(2) a medium gas utility shall pay $400,000; and |
(3) a small gas utility shall pay $200,000. |
For purposes of this Section, (i) a "large gas utility" is |
a gas utility that on December 31, 2008, served more than |
1,500,000 gas customers in Illinois; (ii) a "medium gas |
utility" is a gas utility that on December 31, 2008, served |
fewer than 1,500,000, but more than 500,000 gas customers in |
Illinois; and (iii) a "small gas utility" is a gas utility that |
on December 31, 2008, served fewer than 500,000 and more than |
100,000 gas customers in Illinois. The costs of this |
contribution may not be recovered from ratepayers. |
If a gas utility fails to meet the efficiency standard |
specified in subsection (c) of this Section, as modified by |
subsection (d) of this Section, in any 2 consecutive 3-year |
planning periods, then the responsibility for implementing the |
utility's energy efficiency measures shall be transferred to an |
independent program administrator selected by the Commission. |
Reasonable and prudent costs incurred by the independent |
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program administrator to meet the efficiency standard |
specified in subsection (c) of this Section, as modified by |
subsection (d) of this Section, may be recovered from the |
customers of the affected gas utilities, other than customers |
described in subsection (m) of this Section. The utility shall |
provide the independent program administrator with all |
information and assistance necessary to perform the program |
administrator's duties including but not limited to customer, |
account, and energy usage data, and shall allow the program |
administrator to include inserts in customer bills. The utility |
may recover reasonable costs associated with any such |
assistance. |
(j) No utility shall be deemed to have failed to meet the |
energy efficiency standards to the extent any such failure is |
due to a failure of the Department. |
(k) Not later than January 1, 2012, the Commission shall |
develop and solicit public comment on a plan to foster |
statewide coordination and consistency between statutorily |
mandated natural gas and electric energy efficiency programs to |
reduce program or participant costs or to improve program |
performance. Not later than September 1, 2013, the Commission |
shall issue a report to the General Assembly containing its |
findings and recommendations. |
(l) This Section does not apply to a gas utility that on |
January 1, 2009, provided gas service to fewer than 100,000 |
customers in Illinois. |
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(m) Subsections (a) through (k) of this Section do not |
apply to customers of a natural gas utility that have a North |
American Industry Classification System code number that is |
22111 or any such code number beginning with the digits 31, 32, |
or 33 and (i) annual usage in the aggregate of 4 million therms |
or more within the service territory of the affected gas |
utility or with aggregate usage of 8 million therms or more in |
this State and complying with the provisions of item (l) of |
this subsection (m); or (ii) using natural gas as feedstock and |
meeting the usage requirements described in item (i) of this |
subsection (m), to the extent such annual feedstock usage is |
greater than 60% of the customer's total annual usage of |
natural gas. |
(1) Customers described in this subsection (m) of this |
Section shall apply, on a form approved on or before |
October 1, 2009 by the Department, to the Department to be |
designated as a self-directing customer ("SDC") or as an |
exempt customer using natural gas as a feedstock from which |
other products are made, including, but not limited to, |
feedstock for a hydrogen plant, on or before the 1st day of |
February, 2010. Thereafter, application may be made not |
less than 6 months before the filing date of the gas |
utility energy efficiency plan described in subsection (f) |
of this Section; however, a new customer that commences |
taking service from a natural gas utility after February 1, |
2010 may apply to become a SDC or exempt customer up to 30 |
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days after beginning service. Such application shall |
contain the following: |
(A) the customer's certification that, at the time |
of its application, it qualifies to be a SDC or exempt |
customer described in this subsection (m) of this |
Section; |
(B) in the case of a SDC, the customer's |
certification that it has established or will |
establish by the beginning of the utility's 3-year |
planning period commencing subsequent to the |
application, and will maintain for accounting |
purposes, an energy efficiency reserve account and |
that the customer will accrue funds in said account to |
be held for the purpose of funding, in whole or in |
part, energy efficiency measures of the customer's |
choosing, which may include, but are not limited to, |
projects involving combined heat and power systems |
that use the same energy source both for the generation |
of electrical or mechanical power and the production of |
steam or another form of useful thermal energy or the |
use of combustible gas produced from biomass, or both; |
(C) in the case of a SDC, the customer's |
certification that annual funding levels for the |
energy efficiency reserve account will be equal to 2% |
of the customer's cost of natural gas, composed of the |
customer's commodity cost and the delivery service |
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charges paid to the gas utility, or $150,000, whichever |
is less; |
(D) in the case of a SDC, the customer's |
certification that the required reserve account |
balance will be capped at 3 years' worth of accruals |
and that the customer may, at its option, make further |
deposits to the account to the extent such deposit |
would increase the reserve account balance above the |
designated cap level; |
(E) in the case of a SDC, the customer's |
certification that by October 1 of each year, beginning |
no sooner than October 1, 2012, the customer will |
report to the Department information, for the 12-month |
period ending May 31 of the same year, on all deposits |
and reductions, if any, to the reserve account during |
the reporting year, and to the extent deposits to the |
reserve account in any year are in an amount less than |
$150,000, the basis for such reduced deposits; reserve |
account balances by month; a description of energy |
efficiency measures undertaken by the customer and |
paid for in whole or in part with funds from the |
reserve account; an estimate of the energy saved, or to |
be saved, by the measure; and that the report shall |
include a verification by an officer or plant manager |
of the customer or by a registered professional |
engineer or certified energy efficiency trade |
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professional that the funds withdrawn from the reserve |
account were used for the energy efficiency measures; |
(F) in the case of an exempt customer, the |
customer's certification of the level of gas usage as |
feedstock in the customer's operation in a typical year |
and that it will provide information establishing this |
level, upon request of the Department; |
(G) in the case of either an exempt customer or a |
SDC, the customer's certification that it has provided |
the gas utility or utilities serving the customer with |
a copy of the application as filed with the Department; |
(H) in the case of either an exempt customer or a |
SDC, certification of the natural gas utility or |
utilities serving the customer in Illinois including |
the natural gas utility accounts that are the subject |
of the application; and |
(I) in the case of either an exempt customer or a |
SDC, a verification signed by a plant manager or an |
authorized corporate officer attesting to the |
truthfulness and accuracy of the information contained |
in the application. |
(2) The Department shall review the application to |
determine that it contains the information described in |
provisions (A) through (I) of item (1) of this subsection |
(m), as applicable. The review shall be completed within 30 |
days after the date the application is filed with the |
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Department. Absent a determination by the Department |
within the 30-day period, the applicant shall be considered |
to be a SDC or exempt customer, as applicable, for all |
subsequent 3-year planning periods, as of the date of |
filing the application described in this subsection (m). If |
the Department determines that the application does not |
contain the applicable information described in provisions |
(A) through (I) of item (1) of this subsection (m), it |
shall notify the customer, in writing, of its determination |
that the application does not contain the required |
information and identify the information that is missing, |
and the customer shall provide the missing information |
within 15 working days after the date of receipt of the |
Department's notification. |
(3) The Department shall have the right to audit the |
information provided in the customer's application and |
annual reports to ensure continued compliance with the |
requirements of this subsection. Based on the audit, if the |
Department determines the customer is no longer in |
compliance with the requirements of items (A) through (I) |
of item (1) of this subsection (m), as applicable, the |
Department shall notify the customer in writing of the |
noncompliance. The customer shall have 30 days to establish |
its compliance, and failing to do so, may have its status |
as a SDC or exempt customer revoked by the Department. The |
Department shall treat all information provided by any |
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customer seeking SDC status or exemption from the |
provisions of this Section as strictly confidential. |
(4) Upon request, or on its own motion, the Commission |
may open an investigation, no more than once every 3 years |
and not before October 1, 2014, to evaluate the |
effectiveness of the self-directing program described in |
this subsection (m). |
(n) The applicability of this Section to customers |
described in subsection (m) of this Section is conditioned on |
the existence of the SDC program. In no event will any |
provision of this Section apply to such customers after January |
1, 2020.
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(Source: P.A. 96-33, eff. 7-10-09; 97-813, eff. 7-13-12; |
97-841, eff. 7-20-12.)
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Section 99. Effective date. This Act takes effect upon |
becoming law.
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