Bill Text: IL SB1906 | 2009-2010 | 96th General Assembly | Enrolled
Bill Title: Amends the Illinois Finance Authority Act. Provides that the Act applies to certain projects located outside of the State, if the project involves property or facilities that are owned, operated, leased, or managed by an entity located within the State. Sets forth criteria for approving out-of-State projects. Provides that the Authority shall not provide financing for any project, or portion of a project, located outside of the United States. Provides that the Authority shall not provide financing that constitutes an indebtedness of the State for any project, or portion of a project, located outside of the State. Provides that the Illinois Finance Authority may approve an application to finance or refinance a project located outside of the State only if the Authority has the ability to issue at least another $1,000,000,000 of bonds after giving effect to the financing or refinancing or the out-of-state project. Proposes that the Authority shall not provide financing that uses State volume cap under Section 146 of the Internal Revenue Code of 1986 for a project located outside of the State. Effective immediately.
Spectrum: Slight Partisan Bill (Democrat 11-5)
Status: (Passed) 2009-07-29 - Public Act . . . . . . . . . 96-0103 [SB1906 Detail]
Download: Illinois-2009-SB1906-Enrolled.html
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1 | AN ACT concerning State government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Finance Authority Act is amended by | ||||||
5 | changing Sections 825-65, 825-70, 825-75, and 830-25 as | ||||||
6 | follows:
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7 | (20 ILCS 3501/825-65)
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8 | Sec. 825-65. Clean Coal , Coal, and Renewable Energy Project | ||||||
9 | Financing.
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10 | (a) Findings and declaration of policy. | ||||||
11 | (i) It is hereby found and declared that
Illinois has | ||||||
12 | abundant coal resources and, in some areas of Illinois, the | ||||||
13 | demand
for power exceeds the generating capacity. | ||||||
14 | Incentives to encourage the
construction of coal-fueled | ||||||
15 | coal-fired electric generating plants in Illinois to | ||||||
16 | ensure
power generating capacity into the future and to | ||||||
17 | advance clean coal technology and the use of Illinois coal | ||||||
18 | are in the best interests of all of
the citizens of | ||||||
19 | Illinois. | ||||||
20 | (ii) It is further found and declared that Illinois has | ||||||
21 | abundant potential and resources to develop renewable | ||||||
22 | energy resource projects. The development of those | ||||||
23 | projects will create jobs and investment as well as |
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1 | decrease environmental impacts and promote energy | ||||||
2 | independence in Illinois. Accordingly, the development of | ||||||
3 | those projects is in the best interests of all of the | ||||||
4 | citizens of Illinois. | ||||||
5 | (iii) The Authority is authorized to issue bonds to | ||||||
6 | help
finance Clean Coal , Coal, and Renewable Energy | ||||||
7 | projects pursuant to this
Section.
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8 | (b) Definitions. Definition. | ||||||
9 | (i) "Clean Coal Project and Energy projects " means (A) | ||||||
10 | "clean coal facility", as defined in Section 1-10 of the | ||||||
11 | Illinois Power Agency Act; (B) "clean coal SNG facility", | ||||||
12 | as defined in Section 1-10 of the Illinois Power Agency | ||||||
13 | Act; (C) transmission lines and associated equipment that | ||||||
14 | transfer electricity from points of supply to points of | ||||||
15 | delivery for projects described in this subsection (b); (D) | ||||||
16 | pipelines or other methods to transfer carbon dioxide from | ||||||
17 | the point of production to the point of storage or | ||||||
18 | sequestration for projects described in this subsection | ||||||
19 | (b); or (E) projects to provide carbon abatement technology | ||||||
20 | for existing generating facilities. | ||||||
21 | (ii) "Coal Project" means new electric
generating | ||||||
22 | facilities or new gasification facilities, as defined in
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23 | Section 605-332 of the Department of Commerce and
Economic | ||||||
24 | Opportunity Law of the Civil Administrative Code of | ||||||
25 | Illinois, which
may
include mine-mouth power plants, | ||||||
26 | projects that employ the use of clean coal
technology, |
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1 | projects to provide scrubber technology for existing | ||||||
2 | energy
generating plants, or projects to provide electric | ||||||
3 | transmission facilities or new gasification facilities.
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4 | (iii) "Renewable Energy Project" means (A) a project | ||||||
5 | that uses renewable energy resources, as defined in Section | ||||||
6 | 1-10 of the Illinois Power Agency Act; (B) a project that | ||||||
7 | uses environmentally preferable technologies and practices | ||||||
8 | that result in improvements to the production of renewable | ||||||
9 | fuels, including but not limited to, cellulosic | ||||||
10 | conversion, water and energy conservation, fractionation, | ||||||
11 | alternative feedstocks, or reduced green house gas | ||||||
12 | emissions; (C) transmission lines and associated equipment | ||||||
13 | that transfer electricity from points of supply to points | ||||||
14 | of delivery for projects described in this subsection (b); | ||||||
15 | or (D) projects that use technology for the storage of | ||||||
16 | renewable energy, including, without limitation, the use | ||||||
17 | of battery or electrochemical storage technology for | ||||||
18 | mobile or stationary applications. | ||||||
19 | (c) Creation of reserve funds. The Authority may establish | ||||||
20 | and maintain one
or more reserve funds to enhance bonds issued | ||||||
21 | by the Authority for a Clean Coal Project, a Coal Project, or a | ||||||
22 | Renewable
and
Energy Project projects .
There may be one or more | ||||||
23 | accounts in these reserve funds in which there may be
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24 | deposited:
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25 | (1) any proceeds of the bonds issued by the Authority | ||||||
26 | required to
be deposited therein by the terms of any |
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1 | contract between the Authority and its
bondholders or any | ||||||
2 | resolution of the Authority;
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3 | (2) any other moneys or funds of the Authority that it | ||||||
4 | may
determine to deposit therein from any other source; and
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5 | (3) any other moneys or funds made available to the | ||||||
6 | Authority.
Subject to the terms of any pledge to the owners | ||||||
7 | of any bonds, moneys in any
reserve fund may be held and | ||||||
8 | applied to the payment of principal, premium, if
any, and | ||||||
9 | interest of such bonds.
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10 | (d) Powers and duties. The Authority has the power:
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11 | (1) To issue bonds in one or more series pursuant to | ||||||
12 | one or more
resolutions of the Authority for any Clean Coal | ||||||
13 | Project, Coal Project, or Renewable and Energy Project | ||||||
14 | projects authorized
under this Section, within the | ||||||
15 | authorization set forth in subsection subsections (e)
and | ||||||
16 | (f) .
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17 | (2) To provide for the funding of any reserves or other | ||||||
18 | funds or
accounts deemed necessary by the Authority in | ||||||
19 | connection with any bonds issued
by the Authority.
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20 | (3) To pledge any funds of the Authority or funds made | ||||||
21 | available to
the Authority that may be applied to such | ||||||
22 | purpose as security for any bonds or
any guarantees, | ||||||
23 | letters of credit, insurance contracts or similar credit
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24 | support
or liquidity instruments securing the bonds.
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25 | (4) To enter into agreements or contracts with third | ||||||
26 | parties,
whether public or private, including, without |
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1 | limitation, the United States of
America, the State or any | ||||||
2 | department or agency thereof, to obtain any
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3 | appropriations, grants, loans or guarantees that are | ||||||
4 | deemed necessary or
desirable by the Authority. Any such | ||||||
5 | guarantee, agreement or contract may
contain terms and | ||||||
6 | provisions necessary or desirable in connection with the
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7 | program, subject to the requirements established by the | ||||||
8 | Act.
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9 | (5) To exercise such other powers as are necessary or | ||||||
10 | incidental to
the foregoing.
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11 | (e) Clean Coal Project, Coal Project, and Renewable Energy | ||||||
12 | Project bond authorization and financing limits. In
addition
to | ||||||
13 | any other bonds authorized to be issued under
Sections | ||||||
14 | 801-40(w), 825-60, 830-25
and 845-5, the Authority may have | ||||||
15 | outstanding, at any time, bonds for the
purpose
enumerated in | ||||||
16 | this
Section 825-65 in an aggregate principal amount that shall | ||||||
17 | not
exceed $3,000,000,000 $2,700,000,000 , subject to the | ||||||
18 | following limitations: (i) up to of which no more than | ||||||
19 | $300,000,000 may be issued to
finance projects, as described in | ||||||
20 | clause (C) of subsection (b)(i) and clause (C) of subsection | ||||||
21 | (b)(iii) of this Section 825-65; (ii) up to transmission | ||||||
22 | facilities, no more than $500,000,000 may be issued to
finance | ||||||
23 | projects, as described in clauses (D) and (E) of subsection | ||||||
24 | (b)(i) of this Section 825-65; (iii) up to $2,000,000,000 | ||||||
25 | scrubbers at existing generating plants, no more than | ||||||
26 | $500,000,000 may
be issued to finance Clean Coal Projects, as |
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1 | described in clauses (A) and (B) of subsection (b)(i) of this | ||||||
2 | Section 825-65 and Coal Projects, as described in subsection | ||||||
3 | (b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000 | ||||||
4 | may be issued to finance Renewable Energy Projects, as | ||||||
5 | described in clauses (A), (B), and (D) of subsection (b)(iii) | ||||||
6 | of this Section 825-65 alternative energy sources, including | ||||||
7 | renewable energy
projects and no more than $1,400,000,000 may | ||||||
8 | be issued to finance new electric
generating
facilities or new | ||||||
9 | gasification facilities, as defined in
Section 605-332 of the | ||||||
10 | Department of
Commerce and Economic Opportunity Law of the | ||||||
11 | Civil Administrative Code of
Illinois . An application for a | ||||||
12 | loan
financed from bond proceeds from a borrower or its | ||||||
13 | affiliates for a Clean Coal Project, a Coal Project, or a | ||||||
14 | Renewable
and Energy Project project may not be approved by the | ||||||
15 | Authority for an amount in excess
of $450,000,000 for any | ||||||
16 | borrower or its affiliates. These bonds shall not
constitute an | ||||||
17 | indebtedness or obligation of the State of Illinois and it | ||||||
18 | shall
be plainly stated on the face of each bond that it does | ||||||
19 | not constitute an
indebtedness or obligation of the State of | ||||||
20 | Illinois, but is payable solely from
the revenues, income or | ||||||
21 | other assets of the Authority pledged therefor.
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22 | (f) The bonding authority granted under this Section is in | ||||||
23 | addition to and not limited by the provisions of Section 845-5. | ||||||
24 | Additional Clean Coal and Energy bond authorization and | ||||||
25 | financing
limits.
In addition to any other bonds authorized to | ||||||
26 | be issued under this Act, the
Authority may issue bonds for the |
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1 | purpose enumerated in this
Section 825-65 in an
aggregate | ||||||
2 | principal amount that shall not exceed $300,000,000.
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3 | (Source: P.A. 95-470, eff. 8-27-07.)
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4 | (20 ILCS 3501/825-70)
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5 | Sec. 825-70. Criteria for participation in the program. | ||||||
6 | Applications to
the
Authority for financing of any Clean Coal , | ||||||
7 | Coal, or Renewable and Energy Project project shall be reviewed
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8 | by the Authority. Upon submission of any such application, the | ||||||
9 | Authority staff
shall review the application for its | ||||||
10 | completeness and may, at the discretion of
the Authority staff, | ||||||
11 | request such additional information as it deems necessary
or | ||||||
12 | advisable to aid in review. If the Authority receives | ||||||
13 | applications for
financing for Clean Coal , Coal, or and | ||||||
14 | Renewable Energy Projects projects in excess of the bond
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15 | authorization
available for such financing at any one time, it | ||||||
16 | shall consider applications in
the order of priority as it | ||||||
17 | shall determine, in consultation with other State
agencies , and | ||||||
18 | consistent with State policy to promote environmentally | ||||||
19 | preferable technology and energy independence .
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20 | (Source: P.A. 93-205, eff. 1-1-04.)
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21 | (20 ILCS 3501/825-75)
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22 | Sec. 825-75. Additional Security. In the event that the | ||||||
23 | Authority
determines
that monies of the Authority will not be | ||||||
24 | sufficient for the payment of the
principal of and interest on |
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1 | any bonds issued by the Authority under
Sections
825-65 through | ||||||
2 | 825-75 of this Act for Clean Coal Projects, Coal Projects, or | ||||||
3 | Renewable Energy Projects new electric generating facilities | ||||||
4 | or new gasification facilities
during the next State fiscal
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5 | year, the Chairperson, as soon as practicable, shall certify to | ||||||
6 | the Governor
the
amount required by the Authority to enable it | ||||||
7 | to pay such principal, premium,
if
any, and interest on such | ||||||
8 | bonds. The Governor shall submit the amount so
certified to the | ||||||
9 | General Assembly as soon as practicable, but no later than the
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10 | end of the current State fiscal year. This subsection shall
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11 | apply to any
bonds or notes as to which the Authority shall | ||||||
12 | have determined, in the
resolution authorizing the issuance of | ||||||
13 | the bonds or notes, that this subsection
shall apply. Whenever | ||||||
14 | the Authority makes such a determination, that fact
shall be | ||||||
15 | plainly stated on the face of the bonds or notes and that fact | ||||||
16 | should
also be reported to the Governor.
In the event of a | ||||||
17 | withdrawal of moneys from a reserve fund established with
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18 | respect to any issue or issues of bonds of the Authority to pay | ||||||
19 | principal,
premium, if any, and interest on such bonds, the | ||||||
20 | Chairman of the Authority, as
soon as practicable, shall | ||||||
21 | certify to the Governor the amount required to
restore the | ||||||
22 | reserve fund to the level required in the resolution or | ||||||
23 | indenture
securing those bonds. The Governor shall submit the | ||||||
24 | amount so certified to the
General Assembly as soon as | ||||||
25 | practicable, but no later than the end of the
current State | ||||||
26 | fiscal year. The Authority shall obtain written approval from |
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1 | the
Governor for any bonds and notes to be issued under this | ||||||
2 | Section.
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3 | (Source: P.A. 95-470, eff. 8-27-07.)
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4 | (20 ILCS 3501/830-25)
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5 | Sec. 830-25. Bonded indebtedness limitation. The Authority | ||||||
6 | shall not have
outstanding at any one time State Guarantees | ||||||
7 | under
Section 830-30 in an aggregate
principal amount exceeding | ||||||
8 | $160,000,000. The Authority shall not have
outstanding at any | ||||||
9 | one time State Guarantees under
Sections 830-35, 830-45 and | ||||||
10 | 830-50 in an aggregate principal amount exceeding
$225,000,000 | ||||||
11 | $75,000,000 . The Guarantees in this Section may be used to | ||||||
12 | support Renewable Energy Projects as described in clauses (A) | ||||||
13 | and (B) of subsection (b)(iii) of Section 825-65 of this Act.
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14 | (Source: P.A. 93-205, eff. 1-1-04.)
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