Bill Text: IL SB3597 | 2023-2024 | 103rd General Assembly | Chaptered

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Bill Title: Creates the Climate Bank Loan Financing Act. Allows a governmental unit (i) to own, construct, equip, manage, control, erect, improve, extend, maintain, and operate new or existing clean energy infrastructure projects, to purchase real estate and any property rights to be used for clean energy infrastructure projects, and to charge for the use of clean energy infrastructure, (ii) to borrow money and to access a loan from the Illinois Finance Authority to finance the acquisition, construction, or improvement of new or existing clean energy infrastructure under the Illinois Climate Bank bond loan programs of the Illinois Finance Authority, and (iii) to issue from time to time general obligation bonds, including alternate bonds and limited bonds, and revenue bonds pursuant to applicable law for the purpose of evidencing its obligation to repay its loans from the Illinois Finance Authority. Includes requirements for the issuance of bonds. Requires the governmental unit to adopt an ordinance, or resolution when appropriate, to authorize participation in a loan from the Illinois Finance Authority, and to authorize and issue bonds. Specifies requirements of the ordinance or resolution, including levying a direct annual tax to pay for general obligation bonds and, for revenue bonds, to enter into covenants and agreements as may be found by the governmental unit to be necessary and appropriate to secure the punctual payment of the principal of and interest on the revenue bonds. Allows the governmental unit to enter into loan agreements and security agreements with respect to the borrowing of money from the Illinois Finance Authority pursuant to the Act. Includes provisions relating to authority to issue bonds under other provisions of law, executing of bonds, and severability. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2024-08-09 - Public Act . . . . . . . . . 103-1023 [SB3597 Detail]

Download: Illinois-2023-SB3597-Chaptered.html

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Public Act 103-1023
SB3597 Enrolled LRB103 38800 AWJ 68937 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Climate Bank Loan Financing Act.
Section 5. Definitions. As used in this Act:
"Alternate bonds", "applicable law", "bond", "general
obligation bonds", "limited bonds", "governmental unit",
"revenue bonds", "enterprise revenues", and "revenue source"
have the respective meanings set forth in Section 3 of the
Local Government Debt Reform Act.
"Clean energy infrastructure project" means:
(i) a project that uses renewable energy resources, as
defined in Section 1-10 of the Illinois Power Agency Act;
(ii) an energy efficiency project;
(iii) a project that uses technology for the storage
of renewable energy, including, without limitation, the
use of battery or electrochemical storage technology for
mobile or stationary applications;
(iv) a project for the acquisition or repairs of
electric vehicles;
(v) a project for the acquisition, construction, or
repairs to electric vehicle charging stations; and

(vi) a building electrification project of replacing
fossil fuels with electricity to meet a given end use.
"Electric vehicle" means a vehicle that is exclusively
powered by and refueled by electricity, must be plugged in to
charge, and is licensed to drive on public roadways.
"Electric vehicle charging station" means a station that
delivers electricity from a source outside an electric vehicle
into one or more electric vehicles.
"Energy efficiency project" means measures that reduce the
amount of electricity, natural gas, or total Btu of
electricity or natural gas required to achieve or meet a given
end use, consistent with Section 1-10 of the Illinois Power
Agency Act.
"Governing body" means the council, board, commission, or
body, by whatever name it is known, having charge of the
finances of a governmental unit.
Section 10. Clean energy infrastructure projects. A
governmental unit may own, construct, equip, manage, control,
erect, improve, extend, maintain, and operate new or existing
clean energy infrastructure projects, may purchase real estate
and any property rights to be used for clean energy
infrastructure projects, and may charge for the use of clean
energy infrastructure.
Section 15. Authorization to borrow from Illinois Finance

Authority Illinois Climate Bank loan programs. A governmental
unit may borrow money and access loans from the Illinois
Finance Authority to finance projects for the acquisition,
construction, or improvement of new or existing clean energy
infrastructure, in each case, qualified for financing by the
Illinois Finance Authority under the Illinois Climate Bank
bond loan programs of the Illinois Finance Authority.
Section 20. Bond authorization. A governmental unit may
issue from time to time general obligation bonds, including
alternate bonds and limited bonds, and revenue bonds pursuant
to applicable law for the purpose of evidencing its obligation
to repay its loans from the Illinois Finance Authority.
Section 25. Bond terms. Bonds issued under Section 20
shall bear interest at a rate or rates not to exceed the
maximum rate permitted by the Bond Authorization Act at the
time of the making of the loan from the Illinois Finance
Authority. The bonds shall mature within 30 years from the
date issued. General obligation bonds shall be the direct
general obligations of the governmental unit and the full
faith and credit of the governmental unit shall be pledged for
the punctual payment of the principal of and interest on the
general obligation bonds. Revenue bonds shall be limited
obligations of the governmental unit payable from the
enterprise revenues or revenue sources of the governmental

unit pledged as security for the punctual payment of the
principal of and interest on the revenue bonds.
Section 30. Adoption of ordinance or resolution. In order
to authorize participation in a loan from the Illinois Finance
Authority and to authorize and issue the bonds, the governing
body shall adopt an ordinance, or resolution when appropriate,
providing for the determination of the amount of bonds, the
maturity of bonds, and the rate of interest of the bonds. In
the case of general obligation bonds, the ordinance or
resolution shall provide for the levy and collection of a
direct annual tax upon all the taxable property in the
governmental unit sufficient to pay the principal of and
interest on the general obligation bonds to maturity. Upon the
filing of a certified copy of an adopted ordinance or
resolution levying a direct annual tax under this Section in
the office of the county clerk in each county in which the
governmental unit is located, the county clerk shall annually
extend the tax in addition to all other taxes authorized to be
levied by the governmental unit or on behalf of the
governmental unit. In the case of revenue bonds, the ordinance
or resolution shall provide for covenants and agreements as
may be found by the governmental unit to be necessary and
appropriate, including any liens granted on enterprise
revenues or revenue sources, to secure the punctual payment of
the principal of and interest on the revenue bonds. The

governmental unit may enter into loan agreements and security
agreements with respect to the borrowing of money from the
Illinois Finance Authority pursuant to this Act.
Section 35. Authority for issuance. The authority to issue
bonds by a governmental unit under this Act and applicable law
for clean energy infrastructure projects is in addition to any
other authority to issue bonds by a governmental unit provided
by law.
Section 40. Execution. The bonds shall be executed in the
name of the governmental unit by manual or facsimile
signatures of the officials of the governmental unit as may be
designated by the ordinance or resolution.
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.