The first of the
bills would provide state backing to $300 million in bonds for
companies that agree to use the dollars to build new plants or
convert existing plants to use clean coal technology. Such backing
is considered critical to reducing interest costs, thereby helping
companies initiate construction or improvement projects that might
not otherwise be started.
Since the price tag
for a new plant is between $1.5 billion and $2 billion, a lower
interest rate means savings of hundreds of thousands, or even
millions, of dollars and could determine whether or not a project
moves forward.
Providing state moral
obligation backing to bonds would not impact the state budget.
A second bill would
make it easier and more attractive for new or out-of-state companies
to access existing state grants of up to $100 million per project
that can be used to invest in building power plants that use
technologies that burn Illinois coal.
The legislation would
remove the current requirements that companies must provide four
quarters of Illinois taxes before being eligible for such support.
With this stipulation in place, out-of-state companies have little
incentive to invest in the Illinois. The governor's plan removes
this obstacle to bringing new investment into the state.
The governor's
proposal would build upon successful legislative efforts undertaken
in recent years by lawmakers, led by state Rep. Dan Reitz,
D-Steeleville.
In addition, the
governor is planning to convene a Coal Summit in the coming months.
Of the 24 plants in
Illinois that currently burn coal, only three facilities, including
Duck Creek, burn Illinois coal regularly as a result of clean coal
scrubbing technology. Other sites include Southern Illinois Power
Co-op in Marion and City Water Light & Power Co. in Springfield.
During the past 25
years, Illinois' communities that could previously count on revenues
and economic activity associated with coal mining have suffered
tremendously. Since 1978, downstate communities have seen coal
mining jobs slashed from nearly 18,000 jobs to fewer than 4,000
today.
During that period,
the number of operational mines in Illinois has dwindled from 71 to
20.
In contrast, if Blagojevich's proposal is
carried out, an estimated 20,000 new jobs could be created. The
governor is setting the goal of building five new Illinois plants
that burn clean coal. For every 1,500-megawatt coal burning plant,
approximately 4,000 jobs would be created, including positions in
mining and construction, as well as jobs based at the power plants
and at other sites.
