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90_SB0908sam001
LRB9005399LDmgam
1 AMENDMENT TO SENATE BILL 908
2 AMENDMENT NO. . Amend Senate Bill 908 on page 1, by
3 inserting after line 6 the following:
4 "Section 5. Findings. The legislature finds and
5 declares that it is in the interest of the people of this
6 State that the establishment of local grain processing
7 centers be encouraged in order to augment local agricultural
8 markets, promote agricultural diversification, expand rural
9 employment opportunities, promote economic activity, enhance
10 the environment, and protect and better use the land and
11 agricultural resources of the State.
12 The legislature finds that grain processing shall be
13 considered an agricultural pursuit for the purposes of any
14 laws that apply to or provide for the advancement, benefit,
15 or protection of the agriculture industry of the State.
16 Section 10. Purpose. The purpose of the Act is to
17 improve the environment, create jobs and rural economic
18 growth, and encourage energy self-reliance through the
19 establishment of community-sized grain processing centers
20 which produce ethyl alcohol and other grain products,
21 encourage the establishment of associated industries, and
22 assist Illinois farmers in expanding local markets for their
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1 grain production.
2 Section 15. Definitions. For the purpose of this Act:
3 (a) "Associated industry" means an industry using the
4 by-products of a processing center, including, but not
5 limited to, ethyl alcohol, fermented grains, liquid feeds,
6 carbon dioxide, heat, or any other product resulting from the
7 processing of agricultural products and located in proximity
8 to the processing center.
9 (b) "Corn means Illinois produced corn used in a
10 processing center to make ethyl alcohol, fermented grains,
11 solubles, and carbon dioxide.
12 (c) "Department" means the Department of Agriculture.
13 (d) "Director" means the Director of Agriculture.
14 (e) "Ethyl alcohol" means fermentation ethyl alcohol
15 having a purity of at least 95% (190 proof) and derived from
16 agricultural products, including potatoes, cereal grains,
17 cheese, whey, and sugar beets; forest products; or other
18 renewable resources, including residue and waste generated
19 from the production, processing, and marketing of
20 agricultural products, forest products, and other renewable
21 resources.
22 (f) "Processing center" means a grain processing center
23 at which ethyl alcohol is produced by fermenting corn or
24 other organic materials and which is owned by a governmental
25 unit or a private entity that provides Illinois farmers the
26 opportunity to invest.
27 Section 20. Grain processing payments.
28 (a) The Director shall make cash payments to processors
29 in this State that use corn to make ethyl alcohol and other
30 products. These payments shall apply only to corn used to
31 make ethyl alcohol and other products in this State at a
32 processing center that begins production after January 1,
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1 1998. For the purpose of this Section, an entity that holds
2 a controlling interest in more than one processing center
3 shall be considered a single processor. The amount of the
4 payment for each processor's annual consumption shall be 30
5 cents per bushel of corn for each bushel of corn used to
6 produce ethyl alcohol and other products in a grain
7 processing center that began production after January 1,
8 1998. Payment shall be made only during the 5-year period
9 beginning at the same time as the start of production.
10 Payment shall be made only on the first 5,000,000 bushels of
11 corn consumed annually at each processing center.
12 (b) The Director shall make payments to processors of
13 corn in the amount of 1.5 cents for each kilowatt hour of
14 electricity generated using closed-loop biomass, coal mine
15 methane gas from abandoned mines, or methane from waste
16 disposal, including but not limited to, sanitary landfills,
17 animal manures, or food processing, in a cogeneration
18 facility serving a processing center or associated industry
19 located in this State. Payments under this subsection (b)
20 shall be made only for electricity generated at cogeneration
21 facilities serving processing centers that begin operation
22 after January 1, 1998. The payments shall apply to
23 electricity generated on or before the date 5 years after the
24 processor first qualifies for payment under this Act. Total
25 payments to processors under this Section in any fiscal year
26 may not exceed $750,000. For the purposes of this Section:
27 (i) "closed-loop biomass" means any organic
28 material from a plant that is planted for the purpose of
29 being used to generate electricity or for multiple
30 purposes that include being used to generate electricity;
31 and
32 (ii) "cogeneration" means the combined generation
33 of:
34 (1) electrical or mechanical power; and
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1 (2) steam or forms of useful energy,
2 including, but not limited to heat, that are used
3 for industrial, commercial, heating, or cooling
4 purposes.
5 (c) The total payments under subsections (a) and (b) to
6 all processors may not exceed $4,500,000 in a fiscal year.
7 Total payments under subsections (a) and (b) to a processor
8 in a fiscal year may not exceed $2,250,000.
9 (d) By the last day of September, December, March, and
10 June of each year, each processor shall file a claim for
11 payment for the bushels of corn used in a grain processing
12 center during the preceding 3 calendar months. A processor
13 with more than one processing center shall file a separate
14 claim for each such processing center. A processor who files
15 a claim under this Section shall include a statement of the
16 processor's total corn consumption and total ethyl alcohol
17 production during the quarter covered by the claim. A
18 processor shall file a separate claim for any amount claimed
19 under subsection (b). For each claim and statement of
20 production filed under this Act, the volumes and amounts
21 claimed must be examined by an independent certified public
22 accountant in accordance with standards established by the
23 American Institute of Certified Public Accountants.
24 (e) Payments under this Section shall be made October
25 15, January 15, April 15, and July 15 of each year. A
26 separate payment shall be made for each claim filed. The
27 total quarterly payment to a processor under this Act may not
28 exceed $562,500. If the total amount for which all
29 processors are eligible in a quarter under subsections (a)
30 and (b) exceeds $1,125,000, the Director shall make payments
31 in the order in which the portion of production capacity
32 covered by each claim went into production. Only those
33 processors who receive payments for the quarter or received
34 payments under subsections (a) or (b) in an earlier quarter
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1 will be eligible for corn payments under this Act.
2 (f) If the total amount for which all processors are
3 eligible in a quarter under Section 20(b) exceeds the amount
4 available for payments, the Director shall make payments in
5 the order in which the processing centers covered by the
6 claims began generating electricity using closed-loop
7 biomass, coal mine methane gas from abandoned mines, or
8 methane from waste disposal, including, but not limited to,
9 sanitary landfills, animal 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.".