Sec. 1-58. Clean coal SNG facility construction.

729 words·~3 min read·/il/chapter-20/act-3855/1-58

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(a)It is the intention of the General Assembly to provide additional long-term natural gas price stability to the State and consumers by promoting the development of a clean coal SNG facility that would produce a minimum annual output of 30 Bcf of SNG and commence construction no later than June 1, 2013 on a brownfield site in a municipality with at least one million residents. The costs associated with preparing a facility cost report for such a facility, which contains all of the information required by subsection

(b)of this Section, may be paid or reimbursed pursuant to subsection

(c)of this Section.

(b)The facility cost report for a facility that meets the criteria set forth in subsection

(a)of this Section shall be prepared by a duly licensed engineering firm that details the estimated capital costs payable to one or more contractors or suppliers for the engineering, procurement, and construction of the components comprising the facility and the estimated costs of operation and maintenance of the facility. The report must be provided to the General Assembly and the Agency on or before April 30, 2010. The facility cost report shall include all off the following:

(1)An estimate of the capital cost of the core plant based on a front-end engineering

and design study. The core plant shall include all civil, structural, mechanical, electrical, control, and safety systems. The quoted construction costs shall be expressed in nominal dollars as of the date that the quote is prepared and shall include:

(A)capitalized financing costs during construction;

(B)taxes, insurance, and other owner's costs; and

(C)any assumed escalation in materials and labor beyond the date as of which the

construction cost quote is expressed;

(2)An estimate of the capital cost of the balance of the plant, including any capital

costs associated with site preparation and remediation, sequestration of carbon dioxide emissions, and all interconnects and interfaces required to operate the facility, such as construction or backfeed power supply, pipelines to transport substitute natural gas or carbon dioxide, potable water supply, natural gas supply, water supply, water discharge, landfill, access roads, and coal delivery. The front-end engineering and design study and the cost study for the balance of the plant shall include sufficient design work to permit quantification of major categories of materials, commodities and labor hours, and receipt of quotes from vendors of major equipment required to construct and operate the facility.

(3)An operating and maintenance cost quote that will provide the estimated cost of

delivered fuel, personnel, maintenance contracts, chemicals, catalysts, consumables, spares, and other fixed and variable operating and maintenance costs. This quote is subject to the following requirements:

(A)The delivered fuel cost estimate shall be provided by a recognized third party

expert or experts in the fuel and transportation industries.

(B)The balance of the operating and maintenance cost quote, excluding delivered

fuel costs shall be developed based on the inputs provided by a duly licensed engineering firm performing the construction cost quote, potential vendors under long-term service agreements and plant operating agreements, or recognized third-party plant operator or operators.

The operating and maintenance cost quote shall be expressed in nominal dollars as of the

date that the quote is prepared and shall include

(i)taxes, insurance, and other owner's costs and

(ii)any assumed escalation in materials and labor beyond the date as of which the operating and maintenance cost quote is expressed.

(c)Reasonable amounts paid or due to be paid by the owner or owners of the clean coal SNG facility to third parties unrelated to the owner or owners to prepare the facility cost report will be reimbursed or paid up to $10 million through Coal Development Bonds.

(d)The Agency shall review the facility report and based on that report, consider whether to enter into long term contracts to purchase SNG from the facility pursuant to Section 1-20 of this Act. To assist with its evaluation of the report, the Agency may hire one or more experts or consultants, the reasonable costs of which, not to exceed $250,000, shall be paid for by the owner or owners of the clean coal SNG facility submitting the facility cost report. The Agency may begin the process of selecting such experts or consultants prior to receipt of the facility cost report.