State of Illinois
90th General Assembly

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[ Introduced ][ Engrossed ][ Senate Amendment 001 ]
[ Senate Amendment 002 ]


      (New Act)
          Creates  the  Illinois  Farm  Economic  Development   and
      Renewable Fuel Act.
SB908 Enrolled                                 SRS90S0039PDbm
 1        AN  ACT  to create the Illinois Farm Economic Development
 2    and Renewable Fuel Act.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  1.  Short  title.   This Act may be cited as the
 6    Illinois Farm Economic Development and Renewable Fuel Act.
 7        Section 5.  Findings.  The legislature finds and declares
 8    that it is in the interest of the people of this  State  that
 9    the  establishment  of  local  grain  processing  centers  be
10    encouraged  in  order  to augment local agricultural markets,
11    promote agricultural diversification, expand rural employment
12    opportunities,  promote  economic   activity,   enhance   the
13    environment,   and  protect  and  better  use  the  land  and
14    agricultural resources of the State.
15        The legislature finds  that  grain  processing  shall  be
16    considered  an  agricultural  pursuit for the purposes of any
17    laws that apply to or provide for the  advancement,  benefit,
18    or protection of the agriculture industry of the State.
19        Section  10.  Purpose.   The  purpose  of  the  Act is to
20    improve the  environment,  create  jobs  and  rural  economic
21    growth,   and  encourage  energy  self-reliance  through  the
22    establishment of  community-sized  grain  processing  centers
23    which   produce  ethyl  alcohol  and  other  grain  products,
24    encourage the establishment  of  associated  industries,  and
25    assist  Illinois farmers in expanding local markets for their
26    grain production.
27        Section 15.  Definitions.  For the purpose of this Act:
28        (a)  "Associated industry" means an  industry  using  the
29    by-products  of  a  processing  center,  including,  but  not
SB908 Enrolled              -2-                SRS90S0039PDbm
 1    limited  to,  ethyl  alcohol, fermented grains, liquid feeds,
 2    carbon dioxide, heat, or any other product resulting from the
 3    processing of agricultural products and located in  proximity
 4    to the processing center.
 5        (b)  "Corn   means  Illinois  produced  corn  used  in  a
 6    processing center to make ethyl  alcohol,  fermented  grains,
 7    solubles, and carbon dioxide.
 8        (c)  "Department" means the Department of Agriculture.
 9        (d)  "Director" means the Director of Agriculture.
10        (e)  "Ethyl  alcohol"  means  fermentation  ethyl alcohol
11    having a purity of at least 95% (190 proof) and derived  from
12    agricultural  products,  including  potatoes,  cereal grains,
13    cheese, whey, and sugar  beets;  forest  products;  or  other
14    renewable  resources,  including  residue and waste generated
15    from   the   production,   processing,   and   marketing   of
16    agricultural products, forest products, and  other  renewable
17    resources.
18        (f)  "Processing  center" means a grain processing center
19    at which ethyl alcohol is  produced  by  fermenting  corn  or
20    other  organic materials and which is owned by a governmental
21    unit or a private entity that provides Illinois  farmers  the
22    opportunity to invest.
23        Section 20.  Grain processing payments.
24        (a)  Subject  to  appropriation,  the Director shall make
25    cash payments to processors in this State that  use  corn  to
26    make  ethyl alcohol and other products.  These payments shall
27    apply only to corn used  to  make  ethyl  alcohol  and  other
28    products  in  this  State  at a processing center that begins
29    production after January 1, 1998.  For the  purpose  of  this
30    Section,  an entity that holds a controlling interest in more
31    than one processing  center  shall  be  considered  a  single
32    processor.   The  amount  of the payment for each processor's
33    annual consumption shall be 30 cents per bushel of  corn  for
SB908 Enrolled              -3-                SRS90S0039PDbm
 1    each  bushel  of corn used to produce ethyl alcohol and other
 2    products in a grain processing center that  began  production
 3    after  January  1,  1998.   Payment shall be made only during
 4    the 5-year period beginning at the same time as the start  of
 5    production.    Payment  shall  be  made  only  on  the  first
 6    5,000,000  bushels  of  corn  consumed   annually   at   each
 7    processing center.
 8        (b)  Subject  to  appropriation,  the Director shall make
 9    payments to processors of corn in the amount of 1.5 cents for
10    each kilowatt hour of electricity generated using closed-loop
11    biomass, coal mine  methane  gas  from  abandoned  mines,  or
12    methane  from  waste  disposal, including but not limited to,
13    sanitary landfills, animal manures, or food processing, in  a
14    cogeneration   facility   serving   a  processing  center  or
15    associated industry located in this  State.   Payments  under
16    this  subsection  (b)  shall  be  made  only  for electricity
17    generated  at  cogeneration  facilities  serving   processing
18    centers  that  begin  operation  after  January 1, 1998.  The
19    payments shall apply to electricity generated  on  or  before
20    the  date  5  years  after  the processor first qualifies for
21    payment under this Act.  Total payments to  processors  under
22    this Section in any fiscal year may not exceed $750,000.  For
23    the purposes of this Section:
24             (i)  "closed-loop   biomass"   means   any   organic
25        material  from a plant that is planted for the purpose of
26        being  used  to  generate  electricity  or  for  multiple
27        purposes that include being used to generate electricity;
28        and
29             (ii)  "cogeneration" means the  combined  generation
30        of:
31                  (1)  electrical or mechanical power; and
32                  (2)  steam   or   forms   of   useful   energy,
33             including,  but  not  limited to heat, that are used
34             for  industrial,  commercial,  heating,  or  cooling
SB908 Enrolled              -4-                SRS90S0039PDbm
 1             purposes.
 2        (c)  The total payments under subsections (a) and (b)  to
 3    all  processors  may  not exceed $4,500,000 in a fiscal year.
 4    Total payments under subsections (a) and (b) to  a  processor
 5    in a fiscal year may not exceed $2,250,000.
 6        (d)  By  the  last day of September, December, March, and
 7    June of each year, each processor  shall  file  a  claim  for
 8    payment  for  the  bushels of corn used in a grain processing
 9    center during the preceding 3 calendar months.   A  processor
10    with  more  than  one processing center shall file a separate
11    claim for each such processing center.  A processor who files
12    a claim under this Section shall include a statement  of  the
13    processor's  total  corn  consumption and total ethyl alcohol
14    production during  the  quarter  covered  by  the  claim.   A
15    processor  shall file a separate claim for any amount claimed
16    under subsection  (b).   For  each  claim  and  statement  of
17    production  filed  under  this  Act,  the volumes and amounts
18    claimed must be examined by an independent  certified  public
19    accountant  in  accordance  with standards established by the
20    American Institute of Certified Public Accountants.
21        (e)  Subject  to  appropriation,  payments   under   this
22    Section  shall  be made October 15, January 15, April 15, and
23    July 15 of each year.  Subject to appropriation,  a  separate
24    payment  shall  be  made  for  each  claim  filed.  The total
25    quarterly payment to a  processor  under  this  Act  may  not
26    exceed   $562,500.    If  the  total  amount  for  which  all
27    processors are eligible in a quarter  under  subsections  (a)
28    and (b) exceeds $1,125,000, the Director shall make payments,
29    subject  to  appropriation, in the order in which the portion
30    of production  capacity  covered  by  each  claim  went  into
31    production.   Only  those processors who receive payments for
32    the quarter or received payments under subsections (a) or (b)
33    in an earlier quarter will  be  eligible  for  corn  payments
34    under this Act.
SB908 Enrolled              -5-                SRS90S0039PDbm
 1        (f)  If  the  total  amount  for which all processors are
 2    eligible in a quarter under Section 20(b) exceeds the  amount
 3    available   for   payments,  subject  to  appropriation,  the
 4    Director shall make  payments  in  the  order  in  which  the
 5    processing  centers  covered  by  the claims began generating
 6    electricity using closed-loop biomass, coal mine methane  gas
 7    from   abandoned  mines,  or  methane  from  waste  disposal,
 8    including, but not limited  to,  sanitary  landfills,  animal
 9    manures, or food processing.
10        Section  25.  Rule  making.   The  Director  shall  adopt
11    emergency and permanent rules to implement this Act.
12        Section  30.  Partial  invalidity.   If  any provision of
13    this  Act  or  the  application  thereof  to  any  person  or
14    circumstance is held invalid, the remainder of this  Act  and
15    the  application  of  that  provision  to  other  persons  or
16    circumstances shall not be affected thereby.
17        Section  35.  Expiration.   This Act expires December 31,
18    2005, and the unobligated balance of each appropriation under
19    this Act on that date shall revert  to  the  General  Revenue
20    Fund.
21        Section  99.  Effective date.  This Act takes effect upon
22    becoming law.

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