|
"Legislation such as this
allows us to take a national leadership role in clean-coal
technology," the governor said. "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."
Sen. James Clayborne, D-East St. Louis, and Rep. Kurt Granberg,
D-Centralia, sponsored
Senate Bill 90.
"Governor Blagojevich and I believe that Illinois coal can play
an important role in a comprehensive, sustainable energy plan for
this state," Clayborne said. "This legislation will continue to
develop the market for clean-coal technology, allowing us to mine
more Illinois coal that not only reduces our dependence on foreign
energy sources and creates good jobs, but does so in an
environmentally responsible way."
"The slumbering Illinois coal industry has a better chance of
bursting back into business with this initiative by reopening mines
and creating an estimated 1,400 new jobs," Granberg said. "This
innovative legislation has the potential to relieve shortages and
high pricing by creating natural synthetic gas, thereby resulting in
lower, more stable prices for consumers."
Senate Bill 90 supports production of ultra-clean,
high-efficiency coal gasification facilities that will produce
synthetic natural gas, known as SNG. The legislation sets a price
for SNG that is typically between 18 percent and 30 percent cheaper
than conventional natural gas, potentially offering significant
cost-savings to consumers.
[to top of second column in this article]
 |
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. This guarantee is
designed to permit developers of new SNG facilities to secure sales
contracts to obtain project financing. This will allow developers to
move forward on these kinds of environmentally friendly projects,
creating new markets and jobs in the Illinois coal industry.
The legislation, along with other initiatives spearheaded by Gov.
Blagojevich, puts Illinois in the lead nationally in the deployment
of ultra-clean technology known as integrated gasification combined
cycle, or IGCC. It is fast-emerging IGCC technology that allows
Illinois coal to be used as a feedstock for important energy
products such as SNG, electric power and low-sulfur diesel fuel.
Using coal in such value-added circumstances creates jobs and
investment in Illinois and, at the same time, reduces U.S. reliance
on imported, price-volatile products like crude oil, natural gas and
nitrogen fertilizer.
Senate Bill 90 is effective immediately.
[News release from the governor's
office]
 |
