SB0629sam001 94TH GENERAL ASSEMBLY

Sen. Deanna Demuzio

Filed: 3/8/2005

09400SB0629sam001 LRB094 04374 RSP 43077 a

AMENDMENT TO SENATE BILL 629

AMENDMENT NO. ______. Amend Senate Bill 629 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Renewable Fuels Development Program Act is amended by changing Sections 5, 10, 20, and 25 and by adding Section 27 as follows:

(20 ILCS 689/5)

Sec. 5. Findings and State policy. The General Assembly recognizes that agriculture is a vital sector of the Illinois economy and that an important growth industry for the Illinois agricultural sector is renewable fuels production. Renewable fuels produced from Illinois agricultural products hold great potential for growing the State's economy, reducing our dependence on foreign oil supplies, and improving the environment by reducing harmful emissions from vehicles. Illinois is the nation's leading producer of ethanol, a clean, renewable fuel with significant environmental benefits. The General Assembly finds that reliable supplies of renewable fuels will be integral to the long term energy security of the United States. The General Assembly declares that it is the public policy of the State of Illinois to promote and encourage the production and use of renewable fuels as a means not only to improve air quality in the State and the nation, but also to increase the size of grow the agricultural sector of the Illinois economy. To achieve these public policy objectives, the General Assembly hereby authorizes the creation and implementation of the Illinois Renewable Fuels Development Program within the Department.

(Source: P.A. 93-15, eff. 6-11-03.)

(20 ILCS 689/10)

Sec. 10. Definitions. As used in this Act:

"Biodiesel" means a renewable diesel fuel derived from biomass that is intended for use in diesel engines.

"Biodiesel blend" means a blend of biodiesel with petroleum-based diesel fuel in which the resultant product contains no less than 1% and no more than 99% biodiesel.

"Biomass" means non-fossil organic materials that have an intrinsic chemical energy content. "Biomass" includes, but is not limited to, soybean oil, other vegetable oils, and ethanol.

"Department" means the Department of Commerce and Economic Opportunity Community Affairs.

"Diesel fuel" means any product intended for use or offered for sale as a fuel for engines in which the fuel is injected into the combustion chamber and ignited by pressure without electric spark.

"Director" means the Director of Commerce and Economic Opportunity Community Affairs.

"Ethanol" means a product produced from agricultural commodities or by-products used as a fuel or to be blended with other fuels for use in motor vehicles.

"Flexible fuel vehicle" has the meaning set forth in Section 22 of the Alternate Fuels Act.

"Fuel" means fuel as defined in Section 1.19 of the Motor Fuel Tax Law.

"Gasohol" means motor fuel that is no more than 90% gasoline and at least 10% denatured ethanol that contains no more than 1.25% water by weight.

"Gasoline" means all products commonly or commercially known or sold as gasoline (including casing head and absorption or natural gasoline).

"Illinois agricultural product" means any agricultural commodity grown in Illinois that is used by a production facility to produce renewable fuel in Illinois, including, but not limited to, corn, barley, and soy beans.

"Labor Organization" means any organization defined as a "labor organization" under Section 2 of the National Labor Relations Act (29 U.S.C. 152).

"Majority blended ethanol fuel" means motor fuel that contains no less than 70% and no more than 90% denatured ethanol and no less than 10% and no more than 30% gasoline.

"Motor vehicles" means motor vehicles as defined in the Illinois Vehicle Code and watercraft propelled by an internal combustion engine.

"Owner" means any individual, sole proprietorship, limited partnership, co-partnership, joint venture, corporation, cooperative, or other legal entity, including its agents, that operates or will operate a plant located within the State of Illinois.

"Plant" means a production facility that produces a renewable fuel. "Plant" includes land, any building or other improvement on or to land, and any personal properties deemed necessary or suitable for use, whether or not now in existence, in the processing of fuel from agricultural commodities or by-products.

"Renewable fuel" means ethanol, gasohol, majority blended ethanol fuel, biodiesel blend fuel, and biodiesel.

(Source: P.A. 93-15, eff. 6-11-03; 93-618, eff. 12-11-03; revised 12-6-03.)

(20 ILCS 689/20)

Sec. 20. Grants. Subject to appropriation from the Build Illinois Bond Fund, the Director is authorized to award Illinois Renewable Fuels Development Program grants to eligible applicants. The annual aggregate amount of grants awarded shall not exceed $15,000,000.

(Source: P.A. 93-15, eff. 6-11-03; 93-618, eff. 12-11-03.)

(20 ILCS 689/25)

Sec. 25. Project labor agreements.

(a) The Illinois Renewable Fuels Development Program project labor agreement must include the following:

(1) provisions establishing the minimum hourly wage for each class of labor organization employee;

(2) provisions establishing the benefits and other compensation for each class of labor organization employee; and

(3) provisions establishing that no strike or disputes will be engaged in by the labor organization employees.

The owner of the plant and the labor organizations shall have the authority to include other terms and conditions as they deem necessary.

(b) The project labor agreement shall be filed with the Director in accordance with procedures established by the Department. At a minimum, the project labor agreement must provide the names, addresses, and occupations of the owner of the plant and the individuals representing the labor organization employees participating in the project labor agreement. The agreement must also specify the terms and conditions required in subsection (a).

(Source: P.A. 93-15, eff. 6-11-03.)

(20 ILCS 689/27 new)

Sec. 27. E85 Vehicle Encouragement Program.

(a) The Department shall create and administer the E85 Vehicle Encouragement Program. Under this Program, the Department must solicit and collect applications from persons who have purchased a flexible fuel vehicle within the 12-month period prior to submitting the application. At the end of each calendar year, the Department must compile all approved applications, divide 95% of the moneys in the E85 Vehicle Encouragement Fund by the number of approved applications, and distribute these equal shares to the approved applicants. The Department shall adopt necessary rules to implement this Section, including rules for the solicitation, collection, and approval of applications and for the distribution of grants. No grant shall exceed 10% of the purchase price of the vehicle. If any moneys in the Fund are carried over between fiscal years as a result of this 10% cap or for any other reason, the moneys shall be distributed in the following fiscal year as provided under this Section. Only one distribution shall be made to the owner of any vehicle during the life of that vehicle.

(b) The E85 Vehicle Encouragement Fund is established as a special fund in the State treasury. Moneys in the Fund may be used, subject to appropriation, only for the purposes set forth in this Section. Interest earned on moneys in the Fund must be deposited into the Fund. Each calendar year 95% of the Fund must be distributed as grants under this Section. The Department may retain 5% of the moneys in the Fund for administrative costs of the Program.

(c) The Department shall have access to Secretary of State motor vehicle registration records and other State records to enable verification of these applications.

Section 10. The State Finance Act is amended by adding Section 5.640 as follows:

(30 ILCS 105/5.640 new)

Sec. 5.640. The E85 Vehicle Encouragement Fund.

Section 15. The Illinois Procurement Code is amended by adding Section 25-70 as follows:

(30 ILCS 500/25-70 new)

Sec. 25-70. Motor vehicles.

(a) Each motor vehicle that burns gasoline and that is purchased under a State contract awarded after July 1, 2006, must be capable of burning majority blended ethanol fuel, as defined in Section 10 of the Illinois Renewable Fuels Development Program Act, in place of gasoline or gasohol.

(b) Each motor vehicle that burns diesel fuel and that is purchased under a State contract awarded after July 1, 2006, must be capable of burning biodiesel or blended biodiesel fuel, as defined in Section 10 of the Illinois Renewable Fuels Development Program Act, in place of diesel fuel.

Section 99. Effective date. This Act takes effect upon becoming law.".