In Illinois, legislation currently awaiting the governor’s signature would require covered utilities (in short, electric utilities that, as of December 31, 2005, serviced at least 100,000 customers in the state) to enter into contracts to obtain at least 5 percent of their supply from facilities employing CCS according to specified parameters. The Clean Coal Portfolio Standard Law, passed by the state Senate on November 20, 2008, defines “clean coal facilities” in part as those scheduled to begin operations before 2016 which capture and sequester at least 50 percent of total carbon emissions; for facilities scheduled to begin operations after 2017, at least 90 percent of total carbon emissions must be captured and sequestered to qualify. Facilities failing to meet these targets in operation do not lose their status as clean coal facilities, but must offset to account for any shortcomings and may not pass on the costs of any offsets to customers. Further, any facility’s sequestration requirements may be specifically enforced by the state attorney general.

The legislation contemplates an “initial clean coal facility,” with which each covered electric utility would execute a sourcing agreement for at least 5 percent of each utility’s total supply to serve its load of eligible retail customers in 2015 and each subsequent year, pursuant to a procurement plan to be developed by the covered utility. It also notes a state-wide goal to increase use of electricity generated by clean coal facilities to 25 percent of the total electricity used in the state by 2025.

In addition, the legislation creates the Illinois Power Agency and empowers it to develop, finance, construct, or operate electric generation and co-generation facilities; any such facility using coal must meet the definition of “clean coal facility” noted above and be constructed in a location suitable for geologic storage. The Agency may also develop, finance, construct, or operate the “sequestration facility” itself.

To view a complete copy of the legislation, go to http://www.ilga.gov/legislation/fulltext.asp?DocName=&SessionId=51&GA=95&DocTypeId=SB&DocNum=1987&GAID=9&LegID=35238&SpecSess=&Session=.