97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1979

 

Introduced , by Rep. John E. Bradley

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-40  from Ch. 120, par. 439.3-40

    Amends the Use Tax Act. Provides that "gasohol" means a motor fuel that is a denatured ethanol and gasoline blend that contains (i) no more than 1.25% water by weight and (ii) the maximum proportion of ethanol authorized by the United States Environmental Protection Agency under Section 211 of the Clean Air Act (rather than a motor fuel blend that contains 90% gasoline, 10% denatured ethanol, and no more than 1.25% water by weight). Provides that if, on or after June 1, 2010, the United States Environmental Protection Agency (USEPA), while acting under the authority granted it in Section 211 of the Clean Air Act, authorizes an increase in the maximum proportion of ethanol that may be included in motor fuel blends, then (i) a motor fuel blend containing a proportion of ethanol greater than that which was authorized prior to the USEPA action shall not be treated as gasohol under the Retailers' Occupation Tax Act, the Service Occupation Tax Act, the Use Tax Act, or the Service Use Tax Act, until (A) the Director of Agriculture and the Director of the Environmental Protection Agency have each separately certified to the Director of Revenue that the new motor fuel blend meets the definition of "gasohol" in this Section and that the blend can be legally and safely produced and delivered to consumers with non-flex fuel vehicles and (B) the State Fire Marshal has been provided information by the storage tank owner or operator that the storage tank system, including the fuel delivery infrastructure, meets technical requirements for these regulated storage tank systems under rules promulgated by the Office of the State Fire Marshal pursuant to the Gasoline Storage Act and (ii) a motor fuel blend containing a proportion of ethanol equal to or less than that which was authorized prior to the USEPA action shall, for 180 days after the Director of Revenue receives the last of the required certifications, continue to be treated as gasohol under the Retailers' Occupation Tax Act, Service Occupation Tax Act, Use Tax Act, and Service Use Tax Act.


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A BILL FOR

 

HB1979LRB097 08763 HLH 48893 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-40 as follows:
 
6    (35 ILCS 105/3-40)  (from Ch. 120, par. 439.3-40)
7    Sec. 3-40. Gasohol. As used in this Act, "gasohol" means a
8motor fuel that is a denatured ethanol and gasoline blend of
9denatured ethanol and gasoline that contains (i) no more than
101.25% water by weight and (ii) the maximum proportion of
11ethanol authorized by the United States Environmental
12Protection Agency under Section 211 of the Clean Air Act.
13However, if, on or after June 1, 2010, the United States
14Environmental Protection Agency (USEPA), while acting under
15the authority granted it in Section 211 of the Clean Air Act,
16authorizes an increase in the maximum proportion of ethanol
17that may be included in motor fuel blends, then (i) a motor
18fuel blend containing a proportion of ethanol greater than that
19which was authorized prior to the USEPA action shall not be
20treated as gasohol under the Retailers' Occupation Tax Act, the
21Service Occupation Tax Act, the Use Tax Act, or the Service Use
22Tax Act, until (A) the Director of Agriculture and the Director
23of the Environmental Protection Agency have each separately

 

 

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1certified to the Director of Revenue that the new motor fuel
2blend meets the definition of "gasohol" in this Section and
3that the blend can be legally and safely produced and delivered
4to consumers with non-flex fuel vehicles and (B) the State Fire
5Marshal has been provided information by the storage tank owner
6or operator that the storage tank system, including the fuel
7delivery infrastructure, meets technical requirements for
8these regulated storage tank systems under rules promulgated by
9the Office of the State Fire Marshal pursuant to the Gasoline
10Storage Act and (ii) a motor fuel blend containing a proportion
11of ethanol equal to or less than that which was authorized
12prior to the USEPA action shall, for 180 days after the
13Director of Revenue receives the last of the required
14certifications, continue to be treated as gasohol under the
15Retailers' Occupation Tax Act, the Service Occupation Tax Act,
16the Use Tax Act, and the Service Use Tax Act. The blend must
17contain 90% gasoline and 10% denatured ethanol. A maximum of
18one percent error factor in the amount of denatured ethanol
19used in the blend is allowable to compensate for blending
20equipment variations. Any person who knowingly sells or
21represents as gasohol any fuel that does not qualify as gasohol
22under this Act is guilty of a business offense and shall be
23fined not more than $100 for each day that the sale or
24representation takes place after notification from the
25Department of Agriculture that the fuel in question does not
26qualify as gasohol.

 

 

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1(Source: P.A. 93-724, eff. 7-13-04.)