From AP - News Headlines -

Quinn Vetoes Two Clean-Coal Projects

Gov. Pat Quinn dealt a major blow to plans for two coal gasification plants Monday, using his veto pen to strike down legislation that would have locked in rates for the facilities.

In a veto message, Quinn said plans to build the synthetic natural gas facilities in southwest Jefferson County and in Chicago's south suburbs would result in higher utility bills for Illinoisans.

"Our investments in clean coal must not come at the expense of consumers," Quinn noted. "As we lead the way out of this historic recession, we must always be mindful of the effect our policies will have on the people of Illinois."

Both plants were touted as potential new users of Illinois coal, as well as major job creators. The Illinois Coal Association earlier estimated the facility near Waltonville to be built by Aurora-based Power Holdings LLC could use as much as 2 million tons of coal annually and employ hundreds of people.

The company was planning to use coal mined in nearby Washington County.

"It's a shame the governor chose to do this," said Sen. John Jones, R-Mount Vernon, who co-sponsored the legislation. "Governor Quinn has proved once again he's running jobs out of the state of Illinois."

A number of southern Illinois groups supported the plant, including Southern Illinois University, local chambers of commerce, state and federal lawmakers and mayors of towns from Mount Vernon to Marion.

The legislation would have allowed the company to enter into long-term contracts to sell the gas the plant would produce. Ameren and other gas suppliers would have had to purchase the synthetic gas for the next 10 years, even if cheaper natural gas was available elsewhere.

Quinn signaled he was committed to boosting clean-coal technology, but said the two measures would allow the companies to lock in unusually high rates.

The measures, which were approved in the lame duck legislative session in January, were opposed by the Citizens Utility Board and Attorney General Lisa Madigan's office.

Categories: Energy, Government, Politics