MEASURES HEADING TO GOVERNOR
Clean Coal Legislation – Utility Rate Hikes
CICI and many in the business communityopposed this measure, SB 1987 (Trotter, D-Chicago), that could ultimately mean utility rate increases and hindered competition in the electricity market for industrial customers. An agreement by some of the state’s utilities and the environmental community made the bill’s passage out of the House possible. The bill became stalled in the Senate Environment & Energy Committee last week as many of its members questioned the cost and timing of such as large undertaking. Not of that seemed to matter this week as the measure was able to pass committee and subsequently passed the full Senate unanimously. The measure now heads to the Governor.
The legislation essentially bets with ratepayers’ money on a promising but costly and unproven technology designed for Illinois' abundant coal, whose high sulfur content has impeded its use. Anticipating new federal standards restricting carbon emissions to combat global warming, the technology separates carbon during the coal-burning process for burial underground.
It was estimated by some business groups that electricity rates for residents and businesses could increase by tens of millions of dollars annually once the facility is completed, which at the earliest would be @ 2015. The legislation further mandates price increases every year for the next five years. It was also estimated these price increases could total $400 million per year or $2 billion over 4 years. At current market rates, approximately two-thirds of that $2 billion, or $1.3 billion, will be passed on to consumers, particularly commercial and industrial users.
CICI will ask the Governor to veto SB 1987.
Lead Labeling of Children’s Products
This measure was discussed last week as it was advanced out of committee to the Senate Floor. The bill was passed unanimously out of the Senate this week and has now moved to the Governor desk for his approval. The proposal, SB 2860 (Hunter, D-Chicago), along with a ban on mercury being added to cosmetics, provides that no one shall sell, have, offer for sale, or transfer certain children’s articles that contain a total lead content in any component part of the item that is more than 0.004% (40 parts per million) by total weight unless that item bears a warning statement that indicates that at least one component part of the item contains lead. The 40 parts per million is the threshold considered safe by the American Academy of Pediatrics. This bill now advances to the Governor.
Autism Coverage
This measure, SB 934 (DeLeo, D-Chicago), creates a new health care mandate covering autism. Coming on the heels of a bill amendatorily vetoed by Blagojevich to provide this type of coverage, which was soundly overridden, the Senate revived a measure for at least the fourth time this year aimed at requiring insurance companies to cover treatment of autism disorders. This time, however, the House followed suit, allowing the bill to go to the Governor.
The bill would specifically provide that the coverage would be subject to a maximum benefit of $36,000 per year, but shall not be subject to any limits on the number of visits to an autism service provider until age 21. It is estimated that there are 26,000 cases of autism in Illinois. According to fiscal estimates, passage of this mandate could ultimately cost employers hundreds of millions of dollars.
Please note that the Chemical Industry Council of Illinois Legislator is not intended to convey legal advice or set forth all legal requirements applicable to particular circumstances.
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