96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB0296

 

Introduced 2/6/2009, by Sen. Michael Noland

 

SYNOPSIS AS INTRODUCED:
 
New Act
625 ILCS 5/3-835 new
30 ILCS 105/5.719 new

    Creates the Illinois Diesel Emissions Reduction Act. Creates the Illinois Diesel Emissions Reduction Funding Program and the Diesel Emissions Reduction Fund. Provides that moneys in the Fund shall be used only to implement the Funding Program. Requires the collection of a surcharge on the retail sale or lease of certain diesel vehicles that are of a model year 2006 or earlier and are not equipped with Level 3 Controls. Requires a similar surcharge on the registration of certain diesel vehicles. Requires IEPA, in consultation with the State Treasurer and after notice and public comment, to promulgate rules to establish and implement the Diesel Emissions Reduction Funding Program. Sets out guidelines for the administration of the Diesel Emissions Reduction Funding Program and the corresponding grant and rebate programs. Provides that IEPA may seek injunctive relief in any court of competent jurisdiction to enforce any provision of the Funding Program. Amends the Illinois Vehicle Code. Provides that the Secretary of State shall require additional information with the registration of a diesel motor vehicle to support a reliable and complete inventory of diesel motor vehicles in the State. Provides that the Secretary of State, in consultation with DOT and IEPA, shall, promulgate regulations by October 1, 2010 to develop a program for registration of diesel nonroad vehicles, locomotives, and diesel marine vessels, and shall implement the program beginning January 1, 2010. Contains other provisions. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning finance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 1. Short title. This Act may be cited as the
5 Illinois Diesel Emissions Reduction Act.
 
6     Section 5. Legislative findings and purpose. The
7 Legislature hereby finds and declares that:
8     (a) Diesel exhaust particle pollution poses a clear and
9 present health risk to the people of Illinois. The United
10 States Environmental Protection Agency has classified diesel
11 exhaust as a likely human carcinogen, and has identified diesel
12 particulate matter and diesel exhaust organic gases as toxic
13 air pollutants. Diesel exhaust is also a prime contributor to
14 airborne fine particle pollution, which is linked to premature
15 death and other serious cardiovascular and pulmonary problems
16 such as heart attacks, abnormal heart rhythms,
17 atherosclerosis, stroke, asthma attacks, permanent respiratory
18 damage, and hindered lung growth in children.
19     (b) The health impacts from diesel emissions particularly
20 affect children, the elderly, and people with weakened immune
21 systems.
22     (c) Particularly high concentrations of diesel emissions
23 often occur in heavily traveled transportation corridors,

 

 

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1 intermodal yards, bus depots, and construction sites; these
2 diesel "hot spots" often are found in densely populated urban
3 areas, disproportionately impacting ethnic minorities and
4 people of lower economic status.
5     (d) Diesel engine crankcases also are a source of emissions
6 that can seep into the cabin and expose vehicle drivers and
7 passengers to harmful diesel emissions.
8     (e) Diesel exhaust also contains carbon monoxide and carbon
9 dioxide which are gases that contribute to global climate
10 change.
11     (f) Reduction of diesel emissions can help address these
12 human health and climate problems.
13     (g) The United States Environmental Protection Agency has
14 promulgated regulations over the past few years requiring the
15 substantial reduction of emissions from new diesel engines in
16 both heavy-duty highway vehicles and land-based nonroad
17 equipment. However, these regulations do not apply to any of
18 the over 11,000,000 existing diesel engines in the United
19 States, most of which emit substantially more pollution and
20 often remain in service for 10 to 30 years, depending on the
21 type of engine and equipment.
22     (h) Practical, cost-effective measures to substantially
23 reduce diesel particulate emissions are available today, and
24 can be applied to many existing diesel engines. The same
25 technology that limits diesel pollution from new diesel engines
26 can be retrofitted onto existing engines or applied in new

 

 

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1 replacement engines to reduce diesel emissions by 85% or more.
2     (i) Therefore, the purpose of this Funding Program is to
3 help minimize the public health risks from exposure to diesel
4 particulate emissions as expeditiously as practical.
 
5     Section 10. Definitions. For purposes of this Act:
6     "Auxiliary power unit" means a portable, vehicle-mounted
7 system that provides climate control and power for a diesel
8 vehicle interior cabin without using the propulsion engine.
9     "CARB" means the California Air Resources Board.
10     "Certified engine configuration" means a new, rebuilt, or
11 remanufactured engine configuration:
12         (1) that has been certified or verified by USEPA or
13     CARB;
14         (2) that meets or exceeds engine emissions standards,
15     as determined by IEPA; and
16         (3) in the case of a certified engine configuration
17     involving the replacement of an existing engine or vehicle,
18     an engine configuration that replaced an engine that was
19     removed from the vehicle and returned to the supplier for
20     remanufacturing to a more stringent set of engine emissions
21     standards or for scrappage.
22     "Closed Crankcase Ventilation System" or "CCV" means
23 equipment that completely closes the crankcase of a diesel
24 engine to the atmosphere and routes the crankcase vapor to the
25 engine intake air system or the exhaust system.

 

 

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1     "DOT" means the Illinois Department of Transportation.
2     "Fleet" means one or more diesel vehicles or mobile or
3 stationary diesel engines owned or operated by the same person
4 or group of related persons.
5     "Heavy duty diesel vehicle" means a motor vehicle with a
6 gross vehicle weight rating of at least 14,000 pounds that is
7 powered by a diesel engine.
8     "IEPA" means the Illinois Environmental Protection Agency.
9     "Incremental cost" means the cost of an applicant's
10 emission reduction measure actions, less the baseline cost that
11 would otherwise be incurred by the applicant in the normal
12 course of business. Incremental costs may include added lease
13 or fuel costs as well as capital costs.
14     "Level 3 Control" means a Verified Diesel Emission Control
15 Device that achieves a particulate matter (PM) emission
16 reduction of 85% or more from uncontrolled engine emission
17 levels, or that reduces emissions to less than or equal to 0.01
18 grams of PM per brake horsepower-hour. Level 3 Control includes
19 repowering or replacing the existing diesel engine with an
20 engine meeting USEPA's 2007 Heavy-duty Highway Diesel
21 Standards, or in the case of a nonroad engine, an engine
22 meeting the USEPA's Tier 4 Nonroad Diesel Standards; Level 3
23 Control also includes new diesel engines meeting the emissions
24 standards.
25     "Medium duty diesel vehicle" means a motor vehicle with a
26 gross vehicle weight rating of at least 8,500 pounds and less

 

 

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1 than 14,000 pounds that is powered by a diesel engine.
2     "Motor vehicle" means any self-propelled vehicle designed
3 for transporting persons or property on a street or highway,
4 including an on-road diesel vehicle.
5     "Nonroad engine" means an internal combustion engine
6 (including the fuel system) that is not used in a motor vehicle
7 or a vehicle used solely for competition, or that is not a
8 stationary source, except that this term shall apply to
9 internal combustion engines used to power generators,
10 compressors, or similar equipment used in any construction
11 program or project.
12     "Nonroad vehicle" means a vehicle or piece of equipment
13 that is powered by a nonroad engine, 50 horsepower and greater,
14 and that is not a motor vehicle or a vehicle used solely for
15 competition, which shall include, but not be limited to,
16 excavators, backhoes, cranes, compressors, generators,
17 bulldozers, and similar equipment; unless otherwise indicated,
18 nonroad vehicles do not include locomotives or marine vessels.
19     "Person" means any natural person, co-partnership, firm,
20 company, association, joint stock association, corporation, or
21 other like organization or entity.
22     "PM" means particulate matter, a criteria pollutant listed
23 by the USEPA under the authority of Section 108 of the federal
24 Clean Air Act (42 U.S.C. 7408).
25     "Public agency" means a state, city, county,
26 administration, department, division, bureau, board,

 

 

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1 commission, corporation, institution, or agency of government,
2 the expenses of which are paid in whole or in part from the
3 public treasury.
4     "Retrofit" means to equip a diesel motor vehicle or nonroad
5 vehicle with new particulate emissions-reducing parts or
6 technology verified by USEPA or CARB after manufacture of the
7 original engine.
8     "Ultra low sulfur diesel fuel" means diesel fuel that has a
9 sulfur content of no more than 15 parts per million.
10     "USEPA" means the United States Environmental Protection
11 Agency.
12     "Verified diesel emission control device" means:
13         (1) an emission control device or strategy that has
14     been verified to achieve a specified diesel PM reduction by
15     USEPA or CARB; or
16         (2) replacement or repowering with an engine that is
17     certified to specific PM emissions performance by USEPA or
18     CARB.
19     "Verified technology" means a verified diesel emission
20 control device, an advanced truckstop electrification system,
21 or an auxiliary power unit.
 
22     Section 15. Mechanics of the Diesel Emissions Reduction
23 Funding Program.
24     (a) The Diesel Emissions Reduction Fund (the "Fund") is
25 hereby established as an account in the State treasury.

 

 

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1         (1) The Fund shall be administered by the State
2     Treasurer for the benefit of the Diesel Emissions Reduction
3     Funding Program established under this Section.
4         (2) Interest earned on the Fund shall be credited to
5     the Fund.
6         (3) The Fund consists of the funds, contributions,
7     fees, and surcharges under subdivisions (a)(5), (a)(6),
8     (a)(7), (c)(4)(D), and (d)(10) of Section 15.
9         (4) Moneys in the Fund shall be used only to implement
10     the Funding Program; however, 2% of the money in the Fund
11     may be used for Fund administrative costs incurred by both
12     the IEPA and the State Treasurer. Moneys allocated to an
13     eligible diesel emission reduction measure but not
14     expended in any fiscal year shall be carried over to the
15     next fiscal year.
16         (5) A surcharge is hereby imposed on the retail sale,
17     lease, or rental of diesel nonroad vehicles in an amount
18     equal to 1% of the sales, lease, or rental price of that
19     vehicle. The State Treasurer shall, within one year after
20     enactment of this Act, adopt any procedures needed for the
21     collection, administration, and enforcement of the
22     surcharge authorized by this subsection, and shall deposit
23     all surcharges into the Fund.
24         (6) A surcharge is hereby imposed on every retail sale
25     or lease of every heavy duty diesel vehicle that is of a
26     model year 2006 or earlier that is not equipped with Level

 

 

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1     3 Controls and that is sold or leased in this State. The
2     amount of the surcharge is 2.5% of the sale or lease price.
3     The State Treasurer shall, within one year after the
4     enactment of this Act, adopt any procedures needed for the
5     collection, administration, and enforcement of the
6     surcharge authorized by this subsection, and shall deposit
7     all surcharges into the Fund.
8         (7) In addition to the registration fees charged under
9     Article VIII of the Illinois Vehicle Code, a surcharge is
10     hereby imposed on the registration of a heavy duty diesel
11     vehicle in an amount equal to 10% of the total registration
12     fee due. The surcharges shall be remitted to the State
13     Treasurer for deposit into the Fund.
14     (b) Establishment and Administration of the Funding
15 Program. Within one year after the effective date of this Act,
16 IEPA, in consultation with the State Treasurer and after notice
17 and public comment, shall promulgate rules to establish and
18 implement the Diesel Emissions Reduction Funding Program in
19 accordance with this Act.
20         (1) The Funding Program shall consist of the Grant
21     Program, the Rebate Program, or both, as determined by IEPA
22     in its sole discretion.
23         (2) If IEPA elects to disburse Funding Program funds
24     under the Grant Program, IEPA shall establish and
25     administer that program and shall provide grants and
26     low-cost revolving loans from the Fund, on a competitive

 

 

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1     basis, to eligible measures to achieve significant
2     reductions of diesel particulate emissions in accordance
3     with the provisions of subsection (c).
4         (3) If IEPA elects to disburse Funding Program funds
5     under the Rebate Program, IEPA shall establish and
6     administer that program and shall provide rebates from the
7     Fund in accordance with subsection (d).
8         (4) In administering the Funding Program and in
9     accordance with the requirements of this program, IEPA
10     shall:
11             (A) manage Funding Program funds and oversee the
12         Funding Program;
13             (B) produce guidelines, protocols, and criteria
14         for eligible emission reduction measures;
15             (C) develop methodologies for evaluating emission
16         reduction measure benefits and cost-effectiveness;
17             (D) develop procedures for monitoring whether the
18         emissions reductions projected for grants awarded for
19         emission reduction measures under this Act are
20         actually achieved;
21             (E) prepare reports regarding the progress and
22         effectiveness of the Funding Program; and
23             (F) take all appropriate and necessary actions so
24         that emissions reductions achieved through the Funding
25         Program may be credited by USEPA to the appropriate
26         emissions reduction objectives in the State

 

 

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1         implementation plan.
2     (c) Grant Program. Any Grant Program established by IEPA
3 under subsection (b)(1) shall be implemented in accordance with
4 the following provisions:
5         (1) Each year, IEPA shall allocate, at its discretion,
6     some or all of the moneys available in the Fund to the
7     Grant Program. Grant Program funds not expended in a given
8     year shall be transferred at IEPA's discretion to the Grant
9     Program or any Rebate Program established under subsection
10     (d) for the following year.
11         (2) Fund Distribution. Subject to the provisions of
12     subdivision (a)(4) of this Section, IEPA shall distribute
13     funds available for each fiscal year for eligible emission
14     reduction measures under the Grant Program in accordance
15     with the following priority:
16             (A) first, to diesel fleets owned and operated by a
17         public agency; and, if funds are remaining after all
18         eligible emission reduction measures from this class
19         have been funded, then
20             (B) second, to privately owned diesel fleets
21         operated for the benefit of the public pursuant to a
22         contract with a public agency; and, if funds are
23         remaining after all such eligible emission reduction
24         measures have been funded, then
25             (C) third, to privately owned diesel fleets
26         operating on private business.

 

 

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1         (3) Applications.
2             (A) To receive a grant or loan under the Grant
3         Program, the applicant shall submit to IEPA an
4         application including such information as IEPA may
5         require.
6             (B) An application under this subsection shall
7         include all of the following:
8                 (i) A description of the air quality of the
9             area in which the emission reduction measure
10             fleets will operate.
11                 (ii) A description of the emission reduction
12             measure proposed by the applicant, including all
13             of the following:
14                     (I) Any certified engine configuration or
15                 verified technology proposed to be used or
16                 funded in the emission reduction measure.
17                     (II) The means by which the emission
18                 reduction measure will achieve a significant
19                 reduction in diesel emissions.
20                 (iii) An evaluation (using methodology
21             approved by IEPA) of the quantifiable and
22             unquantifiable benefits of the emissions
23             reductions of the proposed emission reduction
24             measure.
25                 (iv) An estimate of the cost of the proposed
26             emission reduction measure.

 

 

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1                 (v) A description of the age and expected
2             lifetime control of the equipment to be used or
3             funded in the proposed emission reduction measure.
4                 (vi) A description of the diesel fuel
5             available in the areas to be served by the proposed
6             emission reduction measure, including the sulfur
7             content of the fuel.
8                 (vii) Provisions for the monitoring and
9             verification of the emission reduction measure.
10                 (viii) Other information as may be required by
11             IEPA.
12         (4) Eligibility.
13             (A) A person who submits a proposed emission
14         reduction measure must meet the requirements of this
15         Act to be eligible for a grant or loan under the Grant
16         Program.
17             (B) IEPA may consider funding the following types
18         of emission reduction measures:
19                 (i) Installation of a retrofit technology
20             (including any incremental costs of a repowered or
21             new diesel engine) that significantly reduces
22             particulate emissions through development and
23             implementation of a certified engine configuration
24             or a verified diesel emission control device for a
25             medium-duty or heavy-duty diesel motor vehicle, a
26             diesel nonroad vehicle, a commercial marine

 

 

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1             engine, or a locomotive.
2                 (ii) Installation of a CCV on a medium-duty or
3             heavy-duty diesel motor vehicle, a diesel nonroad
4             vehicle, or a locomotive.
5                 (iii) Programs or emission reduction measures
6             to reduce long-duration idling using verified
7             technology involving a medium-duty or heavy-duty
8             diesel motor vehicle, a diesel nonroad vehicle, or
9             a locomotive; however, truckstop electrification
10             facilities shall be eligible for low-cost
11             revolving loans but not eligible for grants.
12             (C) In providing a grant or loan under the Grant
13         Program, and subject to the provisions of subdivision
14         (c)(2) of this Section, IEPA shall give priority to
15         otherwise eligible emission reduction measures within
16         each of the 3 priority categories described in
17         subdivision (c)(2) of that Section that IEPA
18         determines:
19                 (i) Maximize public health benefits.
20                 (ii) Are cost-effective.
21                 (iii) Serve areas with the highest population
22             density; that receive a disproportionate quantity
23             of air pollution from diesel fleets, truckstops,
24             ports, rail yards, terminals, and distribution
25             centers; that use a community-based
26             multi-stakeholder collaborative process to reduce

 

 

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1             toxic emissions; and that are poor air quality
2             areas, including any of the following:
3                         (I) Areas in nonattainment or
4                     maintenance of national ambient air
5                     quality standards for a criteria
6                     pollutant.
7                         (II) Federal Class I areas.
8                         (III) Areas with toxic air pollutant
9                     concerns as determined by the IEPA.
10                 (iv) Include a certified engine configuration
11             or verified technology that has a long expected
12             useful life.
13                 (v) Will maximize the useful life of any
14             certified engine configuration or verified
15             technology used or funded by the project.
16                 (vi) Conserve diesel fuel.
17                 (vii) Use ultra low sulfur diesel fuel.
18             (D) For a proposed emission reduction measure,
19         other than a project involving a marine vessel or
20         engine, to qualify for the Funding Program, at least
21         75% of vehicle miles traveled or hours of operation
22         projected for the 5 years immediately following the
23         award of a grant must be projected to take place in
24         this State. For a proposed emission reduction measure
25         involving a marine vessel or engine, the vessel or
26         engine must be operated in the waterways adjacent to or

 

 

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1         within Illinois for a sufficient amount of time over
2         the lifetime of the measure, as determined by IEPA, to
3         meet the cost-effectiveness requirements of
4         subdivision (c)(5) of this Section. The owner of any
5         vehicle receiving funding for an emission reduction
6         measure that fails, after the award of the grant, to
7         meet this geographical requirement shall pay a civil
8         penalty to IEPA equal to a portion of the grant funds
9         as IEPA shall require pursuant to prior regulations.
10         The proceeds of all of these penalties shall be
11         deposited into the Fund.
12             (E) Each proposed emission reduction measure must
13         meet the cost-effectiveness requirements of
14         subdivision (c)(5) of this Section.
15             (F) A proposed emission reduction measure based on
16         the use of a certified engine configuration or verified
17         technology must document, in a manner acceptable to
18         IEPA, a reduction in particulate emissions of at least
19         50% (compared with the baseline emissions adopted by
20         IEPA for the relevant engine year and application to
21         the extent not provided pursuant of the relevant CARB
22         or USEPA verification process). Three years after the
23         effective date of this Act, after study of available
24         emissions reduction technologies, and after public
25         notice and comment, IEPA may increase the minimum
26         percentage reduction in particulate emissions required

 

 

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1         by this subsection to improve the ability of the
2         Funding Program to achieve its goals.
3         (5) Cost-effectiveness.
4             (A) For purposes of this Act, "cost-effectiveness"
5         means the total dollar amount divided by the total
6         number of tons of particulate matter reduction
7         attributable to that expenditure. In calculating
8         cost-effectiveness, one-time grants of money at the
9         beginning of a project shall be annualized using a time
10         value of public funds or discount rate determined for
11         each project by IEPA, taking into account the interest
12         rate on bonds, interest earned by State funds, and
13         other factors IEPA considers appropriate.
14             (B) IEPA shall establish reasonable methodologies
15         for evaluating emission reduction measure
16         cost-effectiveness consistent with subdivision (5)(A)
17         of this Section.
18             (C) Except as provided by subdivision (5)(F) of
19         this Section, and except for installation of CCVs under
20         subdivision (4)(B)(ii) of this Section, IEPA may not
21         award a grant for a proposed emission reduction measure
22         under the Grant Program the cost-effectiveness of
23         which, calculated in accordance with subdivisions
24         (5)(A) and (B) of this Section and criteria developed
25         under those subdivisions, exceeds $135,000 per ton of
26         PM emissions. This subsection does not restrict IEPA

 

 

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1         authority under other law, to require more or less
2         cost-effective emissions reductions.
3             (D) IEPA may not award a grant for an amount that
4         exceeds the incremental cost of the proposed emission
5         reduction measure.
6             (E) In determining the amount of a grant under this
7         Act, IEPA shall reduce the incremental cost of a
8         proposed new purchase, retrofit, repower, or add-on
9         equipment emission reduction measure by the value of
10         any existing financial incentive that directly reduces
11         the cost of the proposed measure, including tax credits
12         or deductions, other grants, loans, rebates, or any
13         other public financial assistance.
14             (F) Based upon a study of available emissions
15         reduction technologies and costs and after public
16         notice and comment, IEPA may change the values of the
17         maximum grant award criteria established in
18         subdivision (c)(5)(C) of this Section to account for
19         inflation or to improve the ability of the Grant
20         Program to achieve its goals.
21     (d) Rebate Program. Any Rebate Program established by IEPA
22 pursuant to subsection (b)(1) of this Section shall be
23 implemented in accordance with the following provisions:
24         (1) Each year, IEPA shall allocate at its discretion
25     some or all of the moneys available in the Fund to the
26     Rebate Program. Rebate Program funds not expended in a

 

 

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1     given year shall be transferred to the Rebate Program or
2     any Grant Program established under subsection (c) for the
3     following year at IEPA's discretion.
4         (2) A retrofit vendor or owner of an eligible vehicle
5     who meets the requirements of this subsection shall be
6     eligible to receive a rebate under the Rebate Program; for
7     purposes of this subsection, "eligible vehicle" shall mean
8     a vehicle that meets the requirements of this subsection
9     and that is described in subdivision (c)(4)(B)(i) and also:
10             (A) is described in subdivision (c)(2)(A);
11             (B) following 2 years after the effective date of
12         this Funding Program, is described in subdivision
13         (c)(2)(B); and
14             (C) following 4 years after the effective date of
15         this Funding Program, is described in subdivision
16         (c)(2)(C).
17         (3) Moneys from the Fund will be provided in the rebate
18     amount to defray the cost of purchase and installation of
19     retrofitting an eligible vehicle with a Level 3 Control in
20     combination with a CCV.
21         (4) Within 180 days after effective date of this Act,
22     IEPA shall establish the initial rebate amount for
23     retrofits of various types of eligible vehicles. IEPA shall
24     review the appropriateness of the amount no less frequently
25     than annually and may change the rebate amount to improve
26     the ability of the Rebate Program to achieve its goals.

 

 

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1         (5) In order to receive a rebate, an eligible vehicle
2     owner or retrofit vendor shall:
3             (A) submit to IEPA a completed rebate reservation
4         form including information that IEPA may require with
5         respect to each rebate sought;
6             (B) within 120 days of submission of a rebate
7         reservation form, the owner or vendor shall complete
8         the retrofit pertaining to the rebate reservation
9         form, and shall submit a completed IEPA reimbursement
10         request form, including certification of retrofit
11         completion and compliance with all requirements of
12         this subsection and containing any other information
13         and conditions as IEPA may require.
14         (6) Rebates shall be provided on a first come, first
15     served basis, with priority established based upon the date
16     of IEPA receipt of a completed reservation form pursuant to
17     subdivision (5)(A); however, if the retrofits are not
18     completed and the reimbursement request form is not
19     submitted to IEPA within the 120-day period as required by
20     subsection (5)(B), then IEPA may reduce the amount of the
21     rebate or take such other action as it has established by
22     regulations promulgated pursuant to this Funding Program.
23         (7) To the extent of available funds allocated to the
24     Rebate Program, IEPA shall pay the owner or vendor the
25     rebate within 60 days of receipt of a timely, complete, and
26     accurate reimbursement form.

 

 

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1         (8) Owners of eligible vehicles for which rebates are
2     paid must:
3             (A) meet the requirements of subsection (c)(4)(D);
4             (B) fuel the vehicle with ultra low sulfur diesel
5         fuel; and
6             (C) maintain the vehicle and Level 3 Controls
7         according to manufacturer specifications.
8         (9) The retrofit vendor of eligible vehicles for which
9     rebates are provided must honor all warranty provisions
10     according to their verification.
11         (10) Persons receiving rebates who fail to meet all
12     requirements of this subsection shall pay a civil penalty
13     to IEPA in the full amount of the rebates, plus interest at
14     a reasonable rate established by IEPA. The proceeds of all
15     such penalties shall be deposited in the Fund.
16     (e) Emission Reduction Credits.
17         (1) An emission reduction measure funded under the
18     Funding Program established under this Section may not be
19     used for credit under any State or federal emissions
20     reduction credit averaging, banking, or trading program.
21         (2) An emissions reduction generated by an emission
22     reduction measure funded under the Funding Program
23     established under this Section:
24             (A) may not be used as a marketable emissions
25         reduction credit or to offset any emissions reduction
26         obligation; but

 

 

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1             (B) may be used to demonstrate conformity with the
2         State implementation plan.
3         (3) An emission reduction measure involving a new
4     measure that would otherwise generate marketable credits
5     under State or federal emissions reduction credit
6     averaging, banking, or trading programs is not eligible for
7     funding under the Funding Program established under this
8     Section unless:
9             (A) the measure includes the transfer of the
10         reductions that would otherwise be marketable credits
11         to the State implementation plan; and
12             (B) the reductions are permanently retired.
13     (f) Funding Program Reports.
14         (1) Not later than December 1, 2008, and not later than
15     December 1 of every second year thereafter, IEPA shall
16     publish and submit to the Legislature a report of the
17     implementation of the provisions of this Funding Program.
18     IEPA shall provide notice and an opportunity for public
19     comment and public hearing on each draft biennial report
20     and, in producing a final biennial report, shall consider
21     and respond to all significant comments received; the
22     report shall be publicly available, and IEPA shall post it
23     on its website.
24         (2) The report must:
25             (A) include a review of each pollution-reduction
26         measure funded under any Grant Program, the amount

 

 

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1         granted for the emission reduction measure, the
2         emissions reductions attributable to the emission
3         reduction measure, and the cost-effectiveness of the
4         emission reduction measure; IEPA shall also conduct an
5         annual review of any Rebate Program, including the
6         total rebates paid, the total retrofits installed and
7         the aggregate emission reductions attributable to
8         those retrofits;
9             (B) include a summary of IEPA's Funding Program
10         implementation activities under this Section;
11             (C) account for money received, money disbursed as
12         grants, money reserved for grants based on project
13         approvals, money disbursed as rebates, any recommended
14         transfer of money between allocations, and must
15         estimate future demand for grant and rebate funds under
16         the Funding Program;
17             (D) describe the overall effectiveness of the
18         Funding Program in delivering particulate emissions
19         reductions and other emission reductions as
20         co-benefits;
21             (E) evaluate the effectiveness of the Funding
22         Program in soliciting and evaluating project
23         applications, providing awards in a timely manner, and
24         monitoring project implementation;
25             (F) describe adjustments made to project selection
26         criteria and recommend any further needed changes or

 

 

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1         adjustments to the grant programs, including changes
2         in grant award criteria, administrative procedures, or
3         statutory provisions that would enhance the Funding
4         Program's effectiveness and efficiency;
5             (G) describe any adjustments made to the maximum
6         cost-effectiveness amount and award amount;
7             (H) evaluate the benefits of addressing additional
8         pollutants as part of the Funding Program; and
9             (I) include legislative recommendations necessary
10         to improve the effectiveness of the Funding Program.
 
11     Section 20. Miscellaneous.
12     (a) Equitable Relief Authorized. In addition to other
13 remedies provided in this Funding Program, IEPA may seek
14 injunctive relief in any court of competent jurisdiction to
15 enforce any provision of this Funding Program.
16     (b) Severability. If any clause, sentence, paragraph,
17 section or provision of this Funding Program shall be adjudged
18 by any court of competent jurisdiction to be invalid, such
19 judgment shall not affect, impair, or invalidate the remainder
20 of this Funding Program, but shall be confined in its operation
21 to the clause, sentence, paragraph, section, or provision of
22 this Funding Program directly involved in the controversy in
23 which the judgment was rendered.
 
24     Section 90. The Illinois Vehicle Code is amended by adding

 

 

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1 Section 3-835 as follows:
 
2     (625 ILCS 5/3-835 new)
3     Sec. 3-835. Improvement of Diesel Vehicle Registry.
4     (a) Definitions for the purposes of this Section:
5         (i) "Secretary" means the Office of the Illinois
6     Secretary of State.
7         (ii) "DOT" means the Illinois Department of
8     Transportation.
9         (iii) "IEPA" means the Illinois Environmental
10     Protection Agency.
11         (iv) "Motor vehicle" means any self-propelled vehicle
12     designed for transporting persons or property on a street
13     or highway, including an on-road diesel vehicle.
14         (v) "Nonroad vehicle" means a vehicle or equipment that
15     is powered by a nonroad engine, 50 horsepower and greater,
16     and that is not a motor vehicle or a vehicle used solely
17     for competition, which shall include, but not be limited
18     to, excavators, backhoes, cranes, compressors, generators,
19     bulldozers, and similar equipment; unless otherwise
20     indicated, nonroad vehicles do not include locomotives or
21     marine vessels.
22     (b) Diesel Motor Vehicle Registration Information. The
23 Secretary shall, in consultation with IEPA, review the
24 information obtained through the registration of diesel motor
25 vehicles. After such review, and no later than March 1, 2010,

 

 

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1 the Secretary shall require such additional information upon
2 the registration of a diesel motor vehicle that is appropriate
3 to support a reliable and complete inventory of diesel motor
4 vehicles in the State; such information shall include but not
5 be limited to, the type of fuel for which the vehicle is
6 designed, the gross vehicles weight rating, the engine class
7 (including whether the engine is electronically controlled),
8 the use for which the vehicle is designed, and any installed
9 emission controls. The Secretary shall, in consultation with
10 IEPA, provide such information to IEPA in a form that will
11 support a reliable and complete inventory of diesel motor
12 vehicles in the State.
13     (c) Diesel Nonroad Vehicle Registration. The Secretary, in
14 consultation with DOT and IEPA, shall, after written notice and
15 public hearing, promulgate regulations by October 1, 2010 to
16 develop a program for registration of diesel nonroad vehicles,
17 locomotives, and diesel marine vessels, and shall implement the
18 program beginning January 1, 2010. Such program shall be
19 designed, among other things, to support a reliable and
20 complete inventory of diesel nonroad vehicles in the State; the
21 information shall include but not be limited to, the type of
22 fuel for which the vehicle is designed, the type of engine
23 (including whether the engine is electronically controlled),
24 the use for which the vehicle is designed, and any installed
25 emission controls.
26     (e) Severability. If any clause, sentence, paragraph, or

 

 

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1 provision of this Section shall be adjudged by any court of
2 competent jurisdiction to be invalid, such judgment shall not
3 affect, impair, or invalidate the remainder of this Section,
4 but shall be confined in its operation to the clause, sentence,
5 paragraph, section, or provision of this Act directly involved
6 in the controversy in which the judgment was rendered.
 
7     Section 95. The State Finance Act is amended by adding
8 Section 5.719 as follows:
 
9     (30 ILCS 105/5.719 new)
10     Sec. 5.719. The Diesel Emissions Reduction Fund.
 
11     Section 99. Effective date. This Act takes effect upon
12 becoming law.