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20 ILCS 1107/ Clean Coal FutureGen for Illinois Act.

    (20 ILCS 1107/1)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 1. Short title. This Act may be cited as the Clean Coal FutureGen for Illinois Act.
(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/5)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 5. Purpose. Recognizing that the FutureGen Project is a first‑of‑a‑kind research project to permanently sequester underground carbon‑dioxide emissions from a coal‑fueled power plant, and that such a project would have benefits to the economy and environment of Illinois, the purpose of this Act is to provide the FutureGen Alliance with adequate liability protection and permitting certainty to facilitate the siting of the FutureGen Project in the State of Illinois.
(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/10)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 10. Legislative findings. The General Assembly finds and determines that:
        (1) human‑induced greenhouse gas emissions have been

identified as contributing to global warming, the effects of which pose a threat to public health and safety and the economy of the State of Illinois;

(2) in order to meet the energy needs of the State of

Illinois, keep its economy strong and protect the environment while reducing its contribution to human‑induced greenhouse gas emissions, the State of Illinois must be a leader in developing new low‑carbon technologies;

(3) carbon capture and storage is a low‑carbon

technology that involves capturing the carbon dioxide from fossil fuel energy and hydrogen generating units and injecting it into secure geologic strata for permanent storage;

(4) the FutureGen Project is a public‑private

partnership between the Federal Department of Energy and the FutureGen Alliance that proposes to use this new technology as part of a plan to build and operate a near zero emission coal fueled power plant;

(5) the FutureGen Project will help ensure the

long‑term viability of Illinois Basin coal as a major energy source in the State of Illinois and throughout the nation and represents a significant step in the State of Illinois' efforts to become a self‑sufficient, clean energy producer;

(6) the FutureGen Project provides an opportunity for

the State of Illinois to partner with the Federal Department of Energy and the FutureGen Alliance in the development of these innovative clean‑coal technologies;

(7) the FutureGen Project will make the State of

Illinois a center for developing and refining clean coal technology, hydrogen production and carbon capture and storage, and will result in the development of new technologies designed to improve the efficiency of the energy industry that will be replicated world wide;

(8) the FutureGen Project is an important coal

development and conversion project that will create jobs in the State of Illinois during the construction and operational phases, contribute to the overall economy of the State of Illinois and help reinvigorate the Illinois Basin coal industry; and

(9) the FutureGen Project and the property necessary

for the FutureGen Project serve a substantial public purpose as its coal gasification, electricity generation, hydrogen production, advanced emissions control and carbon capture and storage technologies will benefit the citizens of the State of Illinois.

(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/15)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 15. Definitions. For the purposes of this Act:
    "Agency" means the Illinois Environmental Protection Agency.
    "Carbon capture and storage" means the process of capturing CO2 and other chemical constituents from coal combustion by‑products for the purpose of injecting and storing the gas for permanent storage.
    "Carbon dioxide" or "CO2" means a colorless, odorless gas in the form of one carbon and 2 oxygen atoms that is the principal greenhouse gas.
    "Department" means the Department of Commerce and Economic Opportunity.
    "Director" means the Director of Commerce and Economic Opportunity.
    "Federal Department" means the federal Department of Energy.
    "FutureGen Alliance" is a 501(c)(3) non‑profit consortium of coal and energy producers that, as of the effective date of this Act, includes American Electric Power, Anglo American plc, BHP Billiton, E. ON US, China Huaneng Group, CONSOL Energy, Foundation Coal, Kennecott Energy, Peabody Energy, PPL Corporation, Rio Tinto Energy American, Southern Company, and Xstrata Coal.
    "FutureGen Project" means the public‑private partnership between the Federal Department and the FutureGen Alliance that will construct and operate a coal‑fueled power plant utilizing state‑of‑the‑art clean‑coal technology and carbon capture and storage. Two locations in Illinois, Tuscola and Mattoon, are under consideration for the FutureGen Project. These are the only locations eligible for benefits under this Act.
    "Mount Simon Formation" means the deep sandstone reservoir into which the sequestered gas is to be injected at depths generally ranging between 5,500 and 8,500 feet below ground surface and that is bounded by the granitic basement below and the Eau Claire Shale above.
    "Operator" means the FutureGen Alliance and its member companies, including their parent companies, subsidiaries, affiliates, directors, officers, employees, and agents.
    "Post‑injection" means after the captured gas has been successfully injected into the wellhead at the point at which the gas is transferred into the wellbore for carbon sequestration and storage into the Mount Simon Formation.
    "Pre‑injection" means all activities and occurrences prior to successful delivery into the wellhead at the point at which the gas is transferred into the wellbore for carbon sequestration and storage into the Mount Simon Formation, including but not limited to, the operation of the FutureGen Project.
    "Public liability" means any civil legal liability arising out of or resulting from the storage, escape, release, or migration of the post‑injection sequestered gas that was injected during the operation of the FutureGen Project by the FutureGen Alliance. The term "public liability", however, does not include any legal liability arising out of or resulting from the construction, operation, or other pre‑injection activity of the Operator.
    "Public liability action" or "action" means a written demand, lawsuit, or claim from any third party received by the Operator seeking a remedy or alleging liability on behalf of Operator resulting from any public liability.
    "Sequestered gas" means the CO2 and other chemical constituents from the FutureGen Project operations that are injected into the Mount Simon Formation.
(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/20)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 20. Title to sequestered gas. If the FutureGen Project locates at either the Tuscola or Mattoon site in the State of Illinois, then the FutureGen Alliance agrees that the Operator shall transfer and convey and the State of Illinois shall accept and receive, with no payment due from the State of Illinois, all rights, title, and interest in and to and any liabilities associated with the sequestered gas, including any current or future environmental benefits, marketing claims, tradable credits, emissions allocations or offsets (voluntary or compliance based) associated therewith, upon such gas reaching the status of post‑injection, which shall be verified by the Agency or other designated State of Illinois agency. The Operator shall retain all rights, title, and interest in and to and any liabilities associated with the pre‑injection sequestered gas. The Illinois State Geological Survey of the University of Illinois shall monitor, measure, and verify the permanent status of sequestered carbon dioxide and co‑sequestered gases in which the State has acquired the right, title, and interest under this Section.
(Source: P.A. 95‑18, eff. 7‑30‑07; 95‑728, eff. date ‑ See Sec. 999.)

    (20 ILCS 1107/23)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 23. Sequestered gas. The State of Illinois may not intentionally remove sequestered gas unless the removal is for the purpose of research and development.
(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/25)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 25. Insurance against qualified losses.
    (a) The Department shall procure an insurance policy from a private insurance carrier or carriers, if and to the extent that such a policy is available, that insures the Operator against any qualified loss stemming from a public liability action. The policy must be procured in accordance with the provisions of the Procurement Code.
    (b) Pursuant to Section 30 of this Act, the State shall indemnify the Operator against any qualified loss stemming from a public liability action to the extent that the qualified loss is not covered under an insurance policy under subsection (a) of this Section.
    (c) The Department shall pay any insurance premium, deductible, or liability under subsections (a) or (b) from appropriations by the General Assembly for that purpose. It is the intent of this Act that, to the extent practical, any unexpended balance of the proceeds from the sale of emission reduction rights or tradable credits to which the State has title under Section 20 should be used for the purposes of this subsection (c).
    (d) If the FutureGen Alliance locates the FutureGen Project at either the Mattoon or Tuscola site in the State of Illinois, then the Department shall be authorized to contract with the FutureGen Alliance, under terms not inconsistent with this Act, in order to define the rights and obligations of the FutureGen Alliance and the Department, including but not limited to, the insurance and indemnification obligations under Sections 25 and 30 of this Act.
    (e) If federal indemnification covers all or a portion of

the obligations assumed by the State under Section 25 of this Act, such State obligations shall be reduced in proportion to the federal indemnification and be considered subordinated to any federal indemnification.

(g) For the purpose of this Section, "qualified loss" means a loss by the Operator stemming from a public liability action other than those losses arising out of or relating to:         (1) the intentional or willful misconduct of the

Operator in its operation of the FutureGen Project;

(2) the failure of the Operator to comply with any

applicable law, rule, regulation, or other requirement established by the Federal Department, Agency, or State of Illinois for the carbon capture and storage of the sequestered gas, including any limitations on the chemical composition of any sequestered gas; or

(3) the pre‑injection operation of the FutureGen

Project.

(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/30)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 30. Indemnification. Notwithstanding any law to the contrary, the State of Illinois shall indemnify, hold harmless, defend, and release the Operator from and against any public liability action asserted against the Operator, subject to the following terms and conditions:
    (a) The obligation of the State of Illinois to indemnify the Operator does not extend to any public liability arising out of or relating to:
        (1) the intentional or willful misconduct of the

Operator in its operation of the FutureGen Project;

(2) the failure of the Operator to comply with any

applicable law, rule, regulation, or other requirement established by the Federal Department, Agency, or State of Illinois for the carbon capture and storage of the sequestered gas, including any limitations on the chemical composition of any sequestered gas;

(3) the pre‑injection operation of the FutureGen

Project; or

(4) a qualified loss to the extent that it is paid

under an insurance policy under subsection (a) of Section 25 of this Act.

(b) The indemnification obligations of the State of

Illinois assumed under Section 30 of this Act shall be reduced in proportion and be subordinated to any federal indemnification that covers all or a portion of the State's obligations.

(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/35)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 35. Representation. In furtherance of the State of Illinois' obligations set forth in subsection (b) of Section 25 and in Section 30 of this Act, the Attorney General has the following duties:
    (a) In the event that any public liability action covered under Section 30 of this Act is commenced against the Operator, the Attorney General shall, upon timely and appropriate notice to the Attorney General by the Operator, appear on behalf of the Operator and defend the action. Any such notice must be in writing, must be mailed within 15 days after the date of receipt by the Operator of service of process, and must authorize the Attorney General to represent and defend the Operator in the action. The delivery of this notice to the Attorney General constitutes an agreement by the Operator to cooperate with the Attorney General in defense of the action and a consent that the Attorney General shall conduct the defense as the Attorney General deems advisable and in the best interests of the Operator and the State of Illinois, including settlement in the Attorney General's discretion. The Operator may appear in such action through private counsel to respond or object only to any aspect of a proposed settlement or proposed court order which would directly affect the day‑to‑day operations of the FutureGen Project. In any such action, the State of Illinois shall pay the court costs and litigation expenses of defending such action, to the extent approved by the Attorney General as reasonable, as they are incurred.
    (b) In the event that the Attorney General determines either (i) that so appearing and defending the Operator involves an actual or potential conflict of interest or (ii) that the act or omission which gave rise to the claim was not within the scope of the indemnity as provided in Section 30 of this Act, the Attorney General shall decline in writing to appear or defend or shall promptly take appropriate action to withdraw as attorney for the Operator. Upon receipt of such declination or withdrawal by the Attorney General on the basis of an actual or potential conflict of interest, the Operator may employ its own attorney to appear and defend, in which event the State of Illinois shall pay the Operator's court costs, litigation expenses, and attorneys' fees, to the extent approved by the Attorney General as reasonable, as they are incurred.
    (c) In any action asserted by the Operator or the State of Illinois to enforce the indemnification obligations of the State of Illinois as provided in Section 30 of the Act, the non‑prevailing party is responsible for any reasonable court costs, litigation expenses, and attorneys fees incurred by the prevailing party.
    (d) Court costs and litigation expenses and other costs of providing a defense, including attorneys' fees, paid or obligated under this Section, and the costs of indemnification, including the payment of any final judgment or final settlement under this Section, must be paid by warrant from appropriations to the Department pursuant to vouchers certified by the Attorney General.
    (e) Nothing contained or implied in this Section shall operate, or be construed or applied, to deprive the State of Illinois, or the Operator, of any defense otherwise available.
    (f) Any judgment subject to State of Illinois indemnification under this Section is not enforceable against the Operator, but shall be paid by the State of Illinois in the following manner: Upon receipt of a certified copy of the judgment, the Attorney General shall review it to determine if the judgment is (i) final, unreversed, and no longer subject to appeal and (ii) subject to indemnification under Section 30 of this Act. If the Attorney General determines that it is, then the Attorney General shall submit a voucher for the amount of the judgment and any interest thereon to the State of Illinois Comptroller and the amount must be paid by warrant from appropriation to the Department to the judgment creditor solely out of available appropriations.
(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/40)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 40. Permitting. The State of Illinois shall issue to the Operator all necessary and appropriate permits consistent with State and federal law and corresponding regulations. The State of Illinois must allow the Operator to combine applications when appropriate, and the State of Illinois must otherwise streamline the application process for timely permit issuance.
(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/43)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 43. Tax exemption. An operator is exempt from any tax imposed by the State of Illinois that is based upon the nameplate capacity of generating units.
(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/45)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 45. Incentives. The State of Illinois has offered certain incentives to the FutureGen Alliance to make the State of Illinois the most attractive location for the FutureGen Project.
(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/50)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 50. Jurisdiction. The Court of Claims has jurisdiction concerning any public liability action arising under this Act or arising from the operation of the FutureGen Project, except that a public liability action may be brought in the circuit court if the cause of action is one of personal injury or wrongful death and the injury or death was proximately caused by the storage, escape, release, or migration of the post‑injection sequestered gas that was injected during the operation of the FutureGen Project by the FutureGen Alliance, and the circuit court is hereby granted jurisdiction over these matters. The jurisdiction over civil, administrative, or other legal processes is not, otherwise, affected by this Act.
(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/900)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 900. (Amendatory provisions; text omitted).
(Source: P.A. 95‑18, eff. 7‑30‑07; text omitted.)

    (20 ILCS 1107/905)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 905. (Amendatory provisions; text omitted).
(Source: P.A. 95‑18, eff. 7‑30‑07; text omitted.)

    (20 ILCS 1107/910)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 910. (Amendatory provisions; text omitted).
(Source: P.A. 95‑18, eff. 7‑30‑07; text omitted.)

    (20 ILCS 1107/915)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 915. (Amendatory provisions; text omitted).
(Source: P.A. 95‑18, eff. 7‑30‑07; text omitted.)

    (20 ILCS 1107/997)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 997. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.
(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/998)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 998. Repeal. This Act is repealed on December 31, 2010 unless the FutureGen Project has been located at either the Mattoon or Tuscola site in Illinois.
(Source: P.A. 95‑18, eff. 7‑30‑07.)

    (20 ILCS 1107/999)
    (Section scheduled to be repealed on December 31, 2010)
    Sec. 999. Effective date. This Act takes effect upon becoming law.
(Source: P.A. 95‑18, eff. 7‑30‑07.)