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

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

Spectrum: Bipartisan Bill

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

Download: Illinois-2017-HB3042-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB3042 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
20 ILCS 1105/1 from Ch. 96 1/2, par. 7401
20 ILCS 1105/17 new
20 ILCS 1105/20 new
30 ILCS 105/5.878 new
Creates the Energy and Environmental Security Act. Amends the Energy Conservation and Coal Development Act. Creates a Qualified Clean Coal Technology Grant Program for the purpose of funding grants that will allow the grant recipient to (i) meet the qualifications of a qualified clean coal facility, (ii) operate the electric generating unit as a qualified clean coal facility while complying with State and federal emissions requirements, and (iii) mitigate the environmental impacts of the operation of coal-fueled electric generation units. Creates the Clean Coal Development and Utilization Fund to provide funding for grants. Amends the State Finance Act to make a conforming change. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 1. SHORT TITLE.
Section 1-1. Short title. This Act may be cited as the
Energy and Environmental Security Act.
ARTICLE 5. AMENDATORY PROVISIONS
Section 5-5. The Energy Conservation and Coal Development
Act is amended by changing Section 1 and by adding Sections 17
and 20 as follows:
(20 ILCS 1105/1) (from Ch. 96 1/2, par. 7401)
Sec. 1. Definitions; transfer of duties.
(a) For the purposes of this Act, unless the context
otherwise requires:
"Department" means the Department of Commerce and
Economic Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Qualified Clean Coal Facility" means an electric
generating facility which uses United States high volatile

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

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

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

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

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

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

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