Public Act 93-0015

HB0046 Enrolled                      LRB093 02098 SJM 02104 b

    AN ACT concerning renewable fuels.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

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

    Section  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   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.

    Section 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
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 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.
    "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:
         (1)  in  which construction trades, crafts, or labor
    employees, or all or any of these participate; and
         (2)  that represents construction trades, crafts, or
    labor employees, or any or all of these; and
         (3)  that exists for the purpose,  in  whole  or  in
    part,  of  negotiating with the employers of construction
    trades, crafts, or labor employees,  or  any  or  all  of
    these,  terms and conditions of employment, including but
    not  limited  to:  wages,   hours   of   work,   overtime
    provisions,   fringe  benefits,  and  the  settlement  of
    grievances; and
         (4)  that   participates   in   apprenticeship   and
    training approved and registered with the  United  States
    Department   of  Labor's  Bureau  of  Apprenticeship  and
    Training, in the State of Illinois.
    "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 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.

    Section 15. Illinois Renewable Fuels Development Program.
    (a)  The  Department  must  develop  and  administer  the
Illinois Renewable Fuels Development Program to assist in the
construction,  modification,  alteration,  or retrofitting of
renewable fuel plants in Illinois. The recipient of  a  grant
under this Section must:
         (1)   be   constructing,   modifying,  altering,  or
    retrofitting a plant in the State of Illinois;
         (2)  be  constructing,   modifying,   altering,   or
    retrofitting  a plant that has annual production capacity
    of no less than 30,000,000 gallons of renewable fuel  per
    year; and
         (3)   enter   into  a  project  labor  agreement  as
    prescribed by Section 25 of this Act.
    (b) Grant applications must be made on forms provided  by
and   in   accordance  with  procedures  established  by  the
Department.
    (c) The Department must  give  preference  to  applicants
that  use Illinois agricultural products in the production of
renewable fuel at the plant for  which  the  grant  is  being
requested.

    Section  20.  Grants.  Subject  to appropriation from the
General Revenue Fund, the Director  is  authorized  to  award
grants to eligible applicants. The annual aggregate amount of
grants awarded shall not exceed $15,000,000.

    Section 25. Project labor agreements.
    (a)   The   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).

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

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

    (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
    Sec.  2.  This  Act  applies  to  the  wages of laborers,
mechanics and other workers employed in any public works,  as
hereinafter  defined,  by any public body and to anyone under
contracts for public works.
    As  used  in  this  Act,  unless  the  context  indicates
otherwise:
    "Public works" means  all  fixed  works  constructed  for
public  use by any public body, other than work done directly
by any public utility company,  whether  or  not  done  under
public  supervision  or  direction,  or paid for wholly or in
part out of public funds.  "Public works" as  defined  herein
includes all projects financed in whole or in part with bonds
issued under the Industrial Project Revenue Bond Act (Article
11,   Division  74  of  the  Illinois  Municipal  Code),  the
Industrial  Building   Revenue   Bond   Act,   the   Illinois
Development   Finance  Authority  Act,  the  Illinois  Sports
Facilities Authority Act, or the Build Illinois Bond Act, and
all projects financed in whole or in part with loans or other
funds made available pursuant  to  the  Build  Illinois  Act.
"Public  works"  also includes all projects financed in whole
or in part with funds from the  Department  of  Commerce  and
Community   Affairs   under   the  Illinois  Renewable  Fuels
Development Program Act for which there is no  project  labor
agreement.
    "Construction"  means  all work on public works involving
laborers, workers or mechanics.
    "Locality" means the county where the physical work  upon
public  works  is  performed, except (1) that if there is not
available in the county  a  sufficient  number  of  competent
skilled  laborers,  workers  and  mechanics  to construct the
public works efficiently and  properly,  "locality"  includes
any  other  county  nearest  the  one  in  which  the work or
construction is to be performed and from which  such  persons
may be obtained in sufficient numbers to perform the work and
(2) that, with respect to contracts for highway work with the
Department of Transportation of this State, "locality" may at
the   discretion  of  the  Secretary  of  the  Department  of
Transportation be construed to include two or  more  adjacent
counties  from  which  workers  may be accessible for work on
such construction.
    "Public body" means the State or any  officer,  board  or
commission  of  the  State  or  any  political subdivision or
department thereof, or any institution supported in whole  or
in  part  by  public  funds,  authorized  by law to construct
public  works  or  to  enter  into  any  contract   for   the
construction  of  public  works,  and  includes every county,
city, town, village, township, school  district,  irrigation,
utility,  reclamation improvement or other district and every
other political subdivision, district or municipality of  the
state  whether  such  political  subdivision, municipality or
district operates under a special charter or not.
    The terms "general  prevailing  rate  of  hourly  wages",
"general  prevailing  rate  of  wages" or "prevailing rate of
wages" when used in this Act mean the hourly cash wages  plus
fringe  benefits  for  training  and  apprenticeship programs
approved  by  the  U.S.  Department  of  Labor,   Bureau   of
Apprenticeship  and  Training, health and welfare, insurance,
vacations and pensions paid generally,  in  the  locality  in
which  the  work  is being performed, to employees engaged in
work of a similar character on public works.
(Source: P.A.  91-105,  eff.  1-1-00;  91-935,  eff.  6-1-01;
92-16, eff. 6-28-01.)

    (820 ILCS 130/3) (from Ch. 48, par. 39s-3)
    Sec. 3.  Not less than the  general  prevailing  rate  of
hourly  wages for work of a similar character on public works
in the locality in which the work is performed, and not  less
than  the  general  prevailing rate of hourly wages for legal
holiday and overtime work, shall be  paid  to  all  laborers,
workers  and mechanics employed by or on behalf of any public
body engaged in the construction of public works.  Only  such
laborers,  workers  and mechanics as are directly employed by
contractors or subcontractors in actual construction work  on
the  site  of the building or construction job, and laborers,
workers  and  mechanics  engaged  in  the  transportation  of
materials  and  equipment  to  or  from  the  site,  but  not
including the transportation by the sellers and suppliers  or
the  manufacture  or processing of materials or equipment, in
the execution of any contract or contracts for  public  works
with  any  public  body  shall  be deemed to be employed upon
public works. The wage for a tradesman performing maintenance
is equivalent to that of a tradesman engaged in construction.
(Source: P.A. 83-443.)

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

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