Durbin, Johnson push for FutureGen plant

August 11 , 2006

TUSCOLA - Sen. Dick Durbin and Rep. Tim Johnson told a crowd of 100 residents on Thursday that they intend to enlist the help of legislators from other coal-producing states in the Midwest and East to help Tuscola and Mattoon in their efforts to land the world's first clean coal plant.

FutureGen will be designed to convert coal into gas to produce electricity without producing air pollution.

Meanwhile, the state is providing $730,000 to Tuscola and Mattoon to assist them in the site selection process for FutureGen, and the Department of Energy is planning hearings in both communities in late August to answer local residents' questions about the project.

Tuscola and Mattoon, along with Odessa and Jewett, Texas, were selected last month as the final four cities still in the running for the $1 billion plant.

The plant would bring about 1,300 jobs to the area during its construction, 150 permanent jobs at the plant and an estimated 375 jobs in spinoff industries, according to Illinois Department of Commerce and Economic Opportunity Director Jack Lavin.

Durbin told a gathering at the Iron Horse Golf Club Thursday morning that he is working with Johnson to gather bipartisan support throughout the Illinois delegation in Congress as well as in neighboring Midwestern states that produce bituminous coal to bring the plant to Illinois.

"Planning cleaner waste to generate electricity using coal will add to our country's energy security and address serious environmental concerns," Durbin said.

Johnson said that Sen. Barack Obama, Rep. Jerry Costello, Rep. John Shimkus and House Speaker Dennis Hastert are already on board to support the two Illinois finalists, and Durbin said that Gov. Rod Blagojevich and Indiana Gov. Mitch Daniels signed a memorandum of understanding that supports bringing FutureGen to Illinois.

Both Durbin and Johnson said they will be working to gain support from senators and congressmen in other Midwestern states that produce bituminous coal.

According to Durbin, FutureGen leaders may choose to study using the new technology on two of three types of coal (bituminous, subbituminous and lignite coal).

Since lignite coal is common in Texas, Durbin said it would be advantageous for other states which are rich in bituminous coal (including Kentucky, Pennsylvania, Ohio and West Virginia) to get FutureGen in Illinois to ensure that bituminous coal is one of the two types of coal selected.

"The research that will be done here in Illinois will have a direct benefit to their future utilization of coal, too," Durbin said. "The bigger the team we have to support the Illinois sites, the greater chance we have for success."

Johnson said it is important for Illinois to even the political playing field with Texas interests to give Tuscola and Mattoon a fair chance.

"Texas used to be a part of Mexico, while Illinois is part of the United ..." said Johnson before pausing. "Let me put it this way, Texas is a wonderful state, but we are centrally located."

Johnson said he is convinced that, if Illinois and Texas compete on an even playing field, that a neutral decision maker would select either Tuscola or Mattoon.

"We're going to make sure the referees are neutral," Johnson said. "If the referees are neutral, we are going to win."

Lavin said that Illinois' finalists have advantages, including an abundant water supply and location near the University of Illinois, over their rivals from Texas.

"The good news is that the geology here puts science on our side," said Lavin, who coincidentally, has a brother Tim, who is head basketball coach at Champaign Centennial High School.

Lavin said FutureGen is important to reduce the United States' dependence on foreign oil for energy.

While Illinois has 12.5 percent of the country's coal resources and 22 percent of the country's bituminous coal (according to Illinois Office of Coal Development Chief Bill Hoback), Lavin said use of Illinois coal has been declining in recent years because it includes so much sulfur. Coal producers reduced production in the state because of the requirements of the federal Clean Air Act, he said.

Lavin said that switching to a new, clean technology would mean that the presence of sulfur is no longer an issue, making Illinois a prime source for energy.

"We are truly the Saudi Arabia of coal," Durbin said. "With FutureGen, we're saying you can use coal to generate electricity, and you don't have to destroy the environment in the process." Meanwhile, Lavin announced that Blagojevich is making $730,000 available to the two Illinois finalist cities. The money will be used to pay for the costs of engineering work and environmental studies related to FutureGen.

Lavin said this money is in addition to a $17 million grant the state made from its coal technology fund to pay for incentives to convince decision makers to choose either Tuscola or Mattoon, a $15 million sales tax exemption on materials and equipment used to build the plant, and a $50 million below-market-rate loan to the FutureGen Alliance.

The Alliance is composed of the largest energy companies in the United States and an energy company in China.