Illinois Gov. Rod Blagojevich signs 
clean-burning coal legislation

SPRINGFIELD, IL (06/27/05) -- Gov. Rod R. Blagojevich has signed legislation which will help increase the use 
of Illinois-mined coal by supporting the use of clean-coal technology, and legislation that will make it possible 
for Illinois to remain highly competitive as a site for FutureGen, the U.S. Department of Energy's (DOE) $1 billion, 10-year demonstration project to create the world's first coal-based, zero-emissions power plant.

SB 90 supports production of ultra-clean, high-efficiency coal gasification facilities that will produce synthesis natural gas (SNG).  The legislation sets a price for SNG that is typically between 18-30 percent cheaper than that of conventional natural gas, potentially offering significant cost savings to consumers. The legislation permits gas utilities to enter into 20-year supply contracts with any SNG producer using Illinois coal, provided that the Illinois Commerce Commission does not determine that the cost of natural gas is unreasonable or imprudent.

"Legislation such as this allows us to take a national leadership role in clean-coal technology.  In doing so, we're seizing a tremendous opportunity to demonstrate to the world that there are innovative and environmentally-friendly ways to use more Illinois coal, which will give this critical industry an important economic boost.  By continuing to support the use of clean-burning Illinois coal, we continue to support the creation of more good jobs throughout this state," Blagojevich said. 

SB 90 is effective immediately.

SB 1814 allows the Illinois Department of Commerce and Economic Opportunity (DCEO) to provide FutureGen, along with other innovative coal gasification projects, with a wide range of incentives, from tax exemptions and credits to low-cost financing, through DCEO's Coal Revival Program.  The Illinois Finance Authority also has up to $300 million in bonding authority to support clean coal development projects, including FutureGen and other gasification projects.

Gov. Blagojevich's initiative, as spelled out in Senate Bill 1814, adds FutureGen to the types of developments eligible for tax and financing incentives through the Illinois Coal Revival Program, which is administered by the Illinois Department of Commerce and Economic Opportunity (DCEO).

"There is no doubt in my mind that Illinois has everything the U.S. Department of Energy needs to ensure that FutureGen is a tremendous success.  This legislation is a strong signal that Illinois is ready to invest in this project with our private partners in the coal industry.  We have a great opportunity to demonstrate to the world that there are innovative and environmentally-friendly ways to use more Illinois coal, which will give this critical industry an important economic boost and create more good jobs.  FutureGen belongs in Illinois, and I will continue doing everything I can to get it here," Blagojevich said. 

In a further effort to promote the development of the clean-coal market in Illinois, Gov. Blagojevich also signed a bill that will make it easier for coal producers to find secondary markets for the byproducts of coal production.  SB 1909 amends the Illinois Environmental Protection Act to provide more flexibility for coal producers to recycle coal combustion waste to make products such as brick and concrete blocks and road paving materials.  Moreover, recycling the coal waste means that it is diverted from landfills, saving coal producers the costs of land disposal fees. 

SB 1814 will take effect immediately, while SB 1909 will take effect January 1, 2006.