093_HB0046ham002











                                     LRB093 02098 SJM 16549 a

 1                     AMENDMENT TO HOUSE BILL 46

 2        AMENDMENT NO.     .  Amend House Bill 46, AS AMENDED,  by
 3    replacing the title with the following:
 4        "AN ACT concerning renewable fuels."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 1.  Short title. This Act may be  cited  as  the
 8    Illinois Renewable Fuels Development Program Act.

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

 9        Section 10.  Definitions. As used in this Act:
10        "Biodiesel" means a renewable diesel  fuel  derived  from
11    biomass that is intended for use in diesel engines.
12        "Biodiesel   blend"  means  a  blend  of  biodiesel  with
13    petroleum-based diesel fuel in which  the  resultant  product
14    contains no less than 1% and no more than 99% biodiesel.
15        "Biomass" means non-fossil organic materials that have an
16    intrinsic chemical energy content. "Biomass" includes, but is
17    not  limited  to,  soybean  oil,  other  vegetable  oils, and
18    ethanol.
19        "Department"  means  the  Department  of   Commerce   and
20    Community Affairs.
21        "Diesel  fuel"  means  any  product  intended  for use or
22    offered for sale as a fuel for engines in which the  fuel  is
23    injected  into the combustion chamber and ignited by pressure
24    without electric spark.
25        "Director" means the Director of Commerce  and  Community
26    Affairs.
27        "Ethanol"  means  a  product  produced  from agricultural
28    commodities or by-products used as a fuel or  to  be  blended
29    with other fuels for use in motor vehicles.
30        "Fuel" means fuel as defined in Section 1.19 of the Motor
31    Fuel Tax Law.
32        "Gasohol"  means  motor  fuel  that  is  no more than 90%
33    gasoline and at least 10% denatured ethanol that contains  no
 
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 1    more than 1.25% water by weight.
 2        "Gasoline"  means  all  products commonly or commercially
 3    known  or  sold  as  gasoline  (including  casing  head   and
 4    absorption or natural gasoline).
 5        "Illinois  agricultural  product"  means any agricultural
 6    commodity grown in Illinois that  is  used  by  a  production
 7    facility  to  produce  renewable fuel in Illinois, including,
 8    but not limited to, corn, barley, and soy beans.
 9        "Labor Organization" means any organization:
10             (1)  in which construction trades, crafts, or  labor
11        employees, or all or any of these participate; and
12             (2)  that represents construction trades, crafts, or
13        labor employees, or any or all of these; and
14             (3)  that  exists  for  the  purpose, in whole or in
15        part, of negotiating with the employers  of  construction
16        trades,  crafts,  or  labor  employees,  or any or all of
17        these, terms and conditions of employment, including  but
18        not   limited   to:   wages,   hours  of  work,  overtime
19        provisions,  fringe  benefits,  and  the  settlement   of
20        grievances; and
21             (4)  that   participates   in   apprenticeship   and
22        training  approved  and registered with the United States
23        Department  of  Labor's  Bureau  of  Apprenticeship   and
24        Training, in the State of Illinois.
25        "Majority  blended  ethanol  fuel"  means motor fuel that
26    contains no less than 70% and  no  more  than  90%  denatured
27    ethanol and no less than 10% and no more than 30% gasoline.
28        "Motor  vehicles"  means motor vehicles as defined in the
29    Illinois Vehicle Code and watercraft propelled by an internal
30    combustion engine.
31        "Owner"  means  any  individual,   sole   proprietorship,
32    limited    partnership,    co-partnership,   joint   venture,
33    corporation, cooperative, or other legal entity that operates
34    or will operate a plant located within the State of Illinois.
 
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 1        "Plant" means  a  production  facility  that  produces  a
 2    renewable  fuel. "Plant" includes land, any building or other
 3    improvement on or to land, and any personal properties deemed
 4    necessary  or  suitable  for  use,  whether  or  not  now  in
 5    existence,  in  the  processing  of  fuel  from  agricultural
 6    commodities or by-products.
 7        "Renewable fuel" means ethanol, gasohol, majority blended
 8    ethanol fuel, biodiesel blend fuel, and biodiesel.

 9        Section 15. Illinois Renewable Fuels Development Program.
10        (a)  The  Department  must  develop  and  administer  the
11    Illinois Renewable Fuels Development Program to assist in the
12    construction, modification, alteration,  or  retrofitting  of
13    renewable  fuel  plants in Illinois. The recipient of a grant
14    under this Section must:
15             (1)  be  constructing,   modifying,   altering,   or
16        retrofitting a plant in the State of Illinois;
17             (2)   be   constructing,   modifying,  altering,  or
18        retrofitting a plant that has annual production  capacity
19        of  no less than 30,000,000 gallons of renewable fuel per
20        year; and
21             (3)  enter  into  a  project  labor   agreement   as
22        prescribed by Section 25 of this Act.
23        (b)  Grant applications must be made on forms provided by
24    and  in  accordance  with  procedures  established   by   the
25    Department.
26        (c) The Department must give preference to (i) applicants
27    that  use Illinois agricultural products in the production of
28    renewable fuel at the plant for  which  the  grant  is  being
29    requested and (ii) farmer-owned cooperatives.

30        Section 20.  Grants.
31        (a)  Subject  to  appropriation  from the General Revenue
32    Fund, the Director is authorized to award grants to  eligible
 
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 1    applicants.  The  annual  aggregate  amount of grants awarded
 2    shall not exceed $15,000,000.
 3        (b)  Subject to appropriation from  the  General  Revenue
 4    Fund,  an  additional  $1,000,000  in grants shall be awarded
 5    annually as an incentive  for  the  production  of  renewable
 6    fuels  in  Illinois  and  to conduct research and development
 7    activities related to renewable fuels production in Illinois.
 8    These incentive grants shall be awarded pursuant to  criteria
 9    established by the Department by rule.

10        Section 25. Project labor agreements.
11        (a)   The   project  labor  agreement  must  include  the
12    following:
13             (1) provisions establishing the minimum hourly  wage
14        for each class of labor organization employee;
15             (2)  provisions  establishing the benefits and other
16        compensation  for  each  class  of   labor   organization
17        employee; and
18             (3)   provisions  establishing  that  no  strike  or
19        disputes will be engaged in  by  the  labor  organization
20        employees.
21    The owner of the plant and the labor organizations shall have
22    the  authority  to include other terms and conditions as they
23    deem necessary.
24        (b) The project labor agreement shall be filed  with  the
25    Director  in  accordance  with  procedures established by the
26    Department. At a minimum, the project  labor  agreement  must
27    provide the names, addresses, and occupations of the owner of
28    the   plant   and  the  individuals  representing  the  labor
29    organization employees participating  in  the  project  labor
30    agreement.  The  agreement  must  also  specify the terms and
31    conditions required in subsection (a).

32        Section  30.  Administration  of  the  Act;  rules.   The
 
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 1    Department  shall  administer  this  Act  and shall adopt any
 2    rules necessary for that purpose.

 3        Section 905.  The  Prevailing  Wage  Act  is  amended  by
 4    changing Sections 2, 3, and 4 as follows:

 5        (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
 6        Sec.  2.  This  Act  applies  to  the  wages of laborers,
 7    mechanics and other workers employed in any public works,  as
 8    hereinafter  defined,  by any public body and to anyone under
 9    contracts for public works.
10        As  used  in  this  Act,  unless  the  context  indicates
11    otherwise:
12        "Public works" means  all  fixed  works  constructed  for
13    public  use by any public body, other than work done directly
14    by any public utility company,  whether  or  not  done  under
15    public  supervision  or  direction,  or paid for wholly or in
16    part out of public funds.  "Public works" as  defined  herein
17    includes all projects financed in whole or in part with bonds
18    issued under the Industrial Project Revenue Bond Act (Article
19    11,   Division  74  of  the  Illinois  Municipal  Code),  the
20    Industrial  Building   Revenue   Bond   Act,   the   Illinois
21    Development   Finance  Authority  Act,  the  Illinois  Sports
22    Facilities Authority Act, or the Build Illinois Bond Act, and
23    all projects financed in whole or in part with loans or other
24    funds made available pursuant  to  the  Build  Illinois  Act.
25    "Public  works"  also includes all projects financed in whole
26    or in part with funds from the  Department  of  Commerce  and
27    Community   Affairs   under   the  Illinois  Renewable  Fuels
28    Development Program Act.
29        "Construction" means all work on public  works  involving
30    laborers, workers or mechanics.
31        "Locality"  means the county where the physical work upon
32    public works is performed, except (1) that if  there  is  not
 
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 1    available  in  the  county  a  sufficient number of competent
 2    skilled laborers, workers  and  mechanics  to  construct  the
 3    public  works  efficiently  and properly, "locality" includes
 4    any other county  nearest  the  one  in  which  the  work  or
 5    construction  is  to be performed and from which such persons
 6    may be obtained in sufficient numbers to perform the work and
 7    (2) that, with respect to contracts for highway work with the
 8    Department of Transportation of this State, "locality" may at
 9    the  discretion  of  the  Secretary  of  the  Department   of
10    Transportation  be  construed to include two or more adjacent
11    counties from which workers may be  accessible  for  work  on
12    such construction.
13        "Public  body"  means  the State or any officer, board or
14    commission of the  State  or  any  political  subdivision  or
15    department  thereof, or any institution supported in whole or
16    in part by public  funds,  authorized  by  law  to  construct
17    public   works   or  to  enter  into  any  contract  for  the
18    construction of public  works,  and  includes  every  county,
19    city,  town,  village, township, school district, irrigation,
20    utility, reclamation improvement or other district and  every
21    other  political subdivision, district or municipality of the
22    state whether such  political  subdivision,  municipality  or
23    district operates under a special charter or not.
24        The  terms  "general  prevailing  rate  of hourly wages",
25    "general prevailing rate of wages"  or  "prevailing  rate  of
26    wages"  when used in this Act mean the hourly cash wages plus
27    fringe benefits  for  training  and  apprenticeship  programs
28    approved   by   the  U.S.  Department  of  Labor,  Bureau  of
29    Apprenticeship and Training, health and  welfare,  insurance,
30    vacations  and  pensions  paid  generally, in the locality in
31    which the work is being performed, to  employees  engaged  in
32    work of a similar character on public works.
33    (Source: P.A.  91-105,  eff.  1-1-00;  91-935,  eff.  6-1-01;
34    92-16, eff. 6-28-01.)
 
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 1        (820 ILCS 130/3) (from Ch. 48, par. 39s-3)
 2        Sec.  3.   Not  less  than the general prevailing rate of
 3    hourly wages for work of a similar character on public  works
 4    in  the locality in which the work is performed, and not less
 5    than the general prevailing rate of hourly  wages  for  legal
 6    holiday  and  overtime  work,  shall be paid to all laborers,
 7    workers and mechanics employed by or on behalf of any  public
 8    body  engaged  in the construction of public works. Only such
 9    laborers, workers and mechanics as are directly  employed  by
10    contractors  or subcontractors in actual construction work on
11    the site of the building or construction job,  and  laborers,
12    workers  and  mechanics  engaged  in  the  transportation  of
13    materials  and  equipment  to  or  from  the  site,  but  not
14    including  the transportation by the sellers and suppliers or
15    the manufacture or processing of materials or  equipment,  in
16    the  execution  of any contract or contracts for public works
17    with any public body shall be  deemed  to  be  employed  upon
18    public works. The wage for a tradesman performing maintenance
19    is equivalent to that of a tradesman engaged in construction.
20    (Source: P.A. 83-443.)

21        (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
22        Sec.  4. The public body awarding any contract for public
23    work  or  otherwise  undertaking  any  public  works,   shall
24    ascertain  the general prevailing rate of hourly wages in the
25    locality in which the work is to be performed, for each craft
26    or type of worker or mechanic needed to execute the contract,
27    and where the public body performs the work without letting a
28    contract therefor, shall ascertain  the  prevailing  rate  of
29    wages  on  a  per hour basis in the locality, and such public
30    body shall specify in the resolution or ordinance and in  the
31    call  for  bids for the contract, that the general prevailing
32    rate of wages in the locality  for  each  craft  or  type  of
33    worker  or mechanic needed to execute the contract or perform
 
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 1    such work, also the general prevailing rate for legal holiday
 2    and overtime work, as ascertained by the public  body  or  by
 3    the  Department of Labor shall be paid for each craft or type
 4    of worker needed to execute the contract or to  perform  such
 5    work,  and  it shall be mandatory upon the contractor to whom
 6    the contract is awarded and upon any subcontractor under him,
 7    and where the public body performs the work, upon the  public
 8    body,  to  pay  not  less  than  the  specified  rates to all
 9    laborers, workers and  mechanics  employed  by  them  in  the
10    execution  of  the  contract or such work; provided, however,
11    that if the public body desires that the Department of  Labor
12    ascertain  the  prevailing rate of wages, it shall notify the
13    Department of Labor to ascertain the general prevailing  rate
14    of  hourly  wages  for  work  under  contract,  or  for  work
15    performed  by  a  public  body  without letting a contract as
16    required  in  the  locality  in  which  the  work  is  to  be
17    performed, for each craft  or  type  of  worker  or  mechanic
18    needed  to  execute  the  contract  or  project or work to be
19    performed. Upon such notification  the  Department  of  Labor
20    shall  ascertain  such  general prevailing rate of wages, and
21    certify the prevailing wage to such public body.  The  public
22    body  awarding the contract shall cause to be inserted in the
23    contract a stipulation to the effect that not less  than  the
24    prevailing  rate  of  wages  as  found  by the public body or
25    Department of Labor or determined  by  the  court  on  review
26    shall   be  paid  to  all  laborers,  workers  and  mechanics
27    performing work under the contract. It shall also require  in
28    all  such contractor's bonds that the contractor include such
29    provision as will guarantee the faithful performance of  such
30    prevailing  wage  clause  as  provided  by contract.  All bid
31    specifications  shall  list  the  specified  rates   to   all
32    laborers,  workers  and  mechanics  in  the locality for each
33    craft or type of worker or mechanic  needed  to  execute  the
34    contract.   If the Department of Labor revises the prevailing
 
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 1    rate of hourly wages to be  paid  by  the  public  body,  the
 2    revised  rate  shall  apply  to such contract, and the public
 3    body shall be responsible to notify the contractor  and  each
 4    subcontractor, of the revised rate. Two or more investigatory
 5    hearings  under  this  Section on the issue of establishing a
 6    new prevailing wage classification for a particular craft  or
 7    type  of  worker  shall  be  consolidated in a single hearing
 8    before  the  Department.   Such  consolidation  shall   occur
 9    whether each separate investigatory hearing is conducted by a
10    public  body  or  the  Department.  The  party  requesting  a
11    consolidated  investigatory  hearing shall have the burden of
12    establishing  that  there  is  no  existing  prevailing  wage
13    classification for the particular craft or type of worker  in
14    any of the localities under consideration.
15        It shall be mandatory upon the contractor or construction
16    manager  to  whom  a  contract for public works is awarded to
17    post, at a location on the project site of the  public  works
18    that  is  easily  accessible  to  the  workers engaged on the
19    project, the prevailing wage rates for each craft or type  of
20    worker  or mechanic needed to execute the contract or project
21    or work to be performed. A failure to post a prevailing  wage
22    rate as required by this Section is a violation of this Act.
23    (Source: P.A. 92-783, eff. 8-6-02.)

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