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The governor'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. "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," Blagojevich said.
"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 has been working with the Illinois congressional
delegation and other elected officials to demonstrate why the
Department of Energy should choose Illinois for FutureGen. The
governor has sent a delegation to Washington, D.C., to meet with the
department's Office of Fossil Energy to present Illinois' very
compelling case. The department is expected to make a final decision
on FutureGen's location within the next two years.
A consortium of major U.S. energy industry businesses ultimately
will be named to manage FutureGen as a research center and
coal-fueled producer of electric power and hydrogen fuel cells. Its
other major feature is sequestration of carbon dioxide, storing the
greenhouse gas underground or dispensing with it in some other
ecologically sound manner.
Sen. Gary Forby, D-Benton, and Rep. Dan Reitz, D-Sparta,
sponsored Senate Bill 1814.
"Governor Blagojevich and I are dedicated to doing everything we
can to help open new markets for Illinois coal, and this legislation
gives us a very powerful tool to do just that," Forby said. "FutureGen
would not only bring cutting-edge coal research to Illinois, but
more jobs and a cleaner environment. That is exactly the kind of
economic development the governor is championing."
"We have the chance to grow the coal industry and create good
jobs in a way that won't damage our environment," Reitz said.
"Governor Blagojevich and I are committed to landing FutureGen and
other coal projects for Illinois, and this legislation is a clear
demonstration of how serious we are in this campaign."
The new law allows the Illinois Department of Commerce and
Economic Opportunity 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 the Illinois 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.
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 The governor signed the new coal legislation at Steelhead Energy
Company. Steelhead is developing the Southern Illinois Clean Energy
Center, which will be a coal gasification production facility for
electricity and substitute natural gas in Williamson County. The
project has been modernized from a conventional power plant and will
eventually use 2.8 million tons of Illinois coal per year. The
governor is investing $2.5 million in this project, which will
create 400 construction jobs, almost 100 full-time and nearly 300
part-time jobs. The Southern Illinois Clean Energy Center is another
project that can benefit from the passage of Senate Bill 1814.
Among the other initiatives that could benefit from the
legislation is the $442 million conversion of the Royster-Clark
Nitrogen fertilizer plant in East Dubuque from natural gas to
Illinois coal as a feedstock. That project gets under way later this
year and will create 200 new jobs. The governor has already made a
$3 million investment, and a public-private clean-coal endowment has
provided another $2 million to assist with engineering and design
work.
Two other projects to make electric power or chemicals from coal
have also been proposed, one in Williamson County and a second near
Taylorville in Christian County.
In a further effort to promote the development of the clean-coal
market in Illinois, Blagojevich also signed a bill that will make it
easier for coal producers to find secondary markets for the
byproducts of coal production.
Senate Bill 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.
Senate Bill 1909 is sponsored by Sen. Bill Haine, D-Alton, and
Rep. Dan Reitz, D-Sparta.
"We're not only helping increase the use of clean coal, but
helping accelerate the growth of a new market of recycled coal
products," Haine said. "Allowing our coal producers to operate more
efficiently will help them reduce their costs and increase their
revenue, and that will spur more job creation and economic growth
throughout our community."
Senate Bill 1814 will take effect immediately, while
Senate Bill 1909 will take effect Jan. 1, 2006.
[News release from the governor's
office]
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