093_HB0046ham003 LRB093 02098 SJM 16600 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 -2- LRB093 02098 SJM 16600 a 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 -3- LRB093 02098 SJM 16600 a 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. -4- LRB093 02098 SJM 16600 a 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 -5- LRB093 02098 SJM 16600 a 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 -6- LRB093 02098 SJM 16600 a 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 constructedfor13public useby 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 for which there is no project labor 29 agreement. 30 "Construction" means all work on public works involving 31 laborers, workers or mechanics. 32 "Locality" means the county where the physical work upon -7- LRB093 02098 SJM 16600 a 1 public works is performed, except (1) that if there is not 2 available in the county a sufficient number of competent 3 skilled laborers, workers and mechanics to construct the 4 public works efficiently and properly, "locality" includes 5 any other county nearest the one in which the work or 6 construction is to be performed and from which such persons 7 may be obtained in sufficient numbers to perform the work and 8 (2) that, with respect to contracts for highway work with the 9 Department of Transportation of this State, "locality" may at 10 the discretion of the Secretary of the Department of 11 Transportation be construed to include two or more adjacent 12 counties from which workers may be accessible for work on 13 such construction. 14 "Public body" means the State or any officer, board or 15 commission of the State or any political subdivision or 16 department thereof, or any institution supported in whole or 17 in part by public funds,authorized by law to construct18public works or to enter into any contract for the19construction of public works,and includes every county, 20 city, town, village, township, school district, irrigation, 21 utility, reclamation improvement or other district and every 22 other political subdivision, district or municipality of the 23 state whether such political subdivision, municipality or 24 district operates under a special charter or not. 25 The terms "general prevailing rate of hourly wages", 26 "general prevailing rate of wages" or "prevailing rate of 27 wages" when used in this Act mean the hourly cash wages plus 28 fringe benefits for training and apprenticeship programs 29 approved by the U.S. Department of Labor, Bureau of 30 Apprenticeship and Training, health and welfare, insurance, 31 vacations and pensions paid generally, in the locality in 32 which the work is being performed, to employees engaged in 33 work of a similar character on public works. 34 (Source: P.A. 91-105, eff. 1-1-00; 91-935, eff. 6-1-01; -8- LRB093 02098 SJM 16600 a 1 92-16, eff. 6-28-01.) 2 (820 ILCS 130/3) (from Ch. 48, par. 39s-3) 3 Sec. 3. Not less than the general prevailing rate of 4 hourly wages for work of a similar character on public works 5 in the locality in which the work is performed, and not less 6 than the general prevailing rate of hourly wages for legal 7 holiday and overtime work, shall be paid to all laborers, 8 workers and mechanics employed by or on behalf of any public 9 body engaged in the construction of public works. Only such 10 laborers, workers and mechanics as are directly employed by 11 contractors or subcontractors in actual construction work on 12 the site of the building or construction job, and laborers, 13 workers and mechanics engaged in the transportation of 14 materials and equipment to or from the site, but not 15 including the transportation by the sellers and suppliers or 16 the manufacture or processing of materials or equipment, in 17 the execution of any contract or contracts for public works 18 with any public body shall be deemed to be employed upon 19 public works. The wage for a tradesman performing maintenance 20 is equivalent to that of a tradesman engaged in construction. 21 (Source: P.A. 83-443.) 22 (820 ILCS 130/4) (from Ch. 48, par. 39s-4) 23 Sec. 4. The public body awarding any contract for public 24 work or otherwise undertaking any public works, shall 25 ascertain the general prevailing rate of hourly wages in the 26 locality in which the work is to be performed, for each craft 27 or type of worker or mechanic needed to execute the contract, 28 and where the public body performs the work without letting a 29 contract therefor, shall ascertain the prevailing rate of 30 wages on a per hour basis in the locality, and such public 31 body shall specify in the resolution or ordinance and in the 32 call for bids for the contract, that the general prevailing -9- LRB093 02098 SJM 16600 a 1 rate of wages in the locality for each craft or type of 2 worker or mechanic needed to execute the contract or perform 3 such work, also the general prevailing rate for legal holiday 4 and overtime work, as ascertained by the public body or by 5 the Department of Labor shall be paid for each craft or type 6 of worker needed to execute the contract or to perform such 7 work, and it shall be mandatory upon the contractor to whom 8 the contract is awarded and upon any subcontractor under him, 9 and where the public body performs the work, upon the public 10 body, to pay not less than the specified rates to all 11 laborers, workers and mechanics employed by them in the 12 execution of the contract or such work; provided, however, 13 that if the public body desires that the Department of Labor 14 ascertain the prevailing rate of wages, it shall notify the 15 Department of Labor to ascertain the general prevailing rate 16 of hourly wages for work under contract, or for work 17 performed by a public body without letting a contract as 18 required in the locality in which the work is to be 19 performed, for each craft or type of worker or mechanic 20 needed to execute the contract or project or work to be 21 performed. Upon such notification the Department of Labor 22 shall ascertain such general prevailing rate of wages, and 23 certify the prevailing wage to such public body. The public 24 body awarding the contract shall cause to be inserted in the 25 contract a stipulation to the effect that not less than the 26 prevailing rate of wages as found by the public body or 27 Department of Labor or determined by the court on review 28 shall be paid to all laborers, workers and mechanics 29 performing work under the contract. It shall also require in 30 all such contractor's bonds that the contractor include such 31 provision as will guarantee the faithful performance of such 32 prevailing wage clause as provided by contract. All bid 33 specifications shall list the specified rates to all 34 laborers, workers and mechanics in the locality for each -10- LRB093 02098 SJM 16600 a 1 craft or type of worker or mechanic needed to execute the 2 contract. If the Department of Labor revises the prevailing 3 rate of hourly wages to be paid by the public body, the 4 revised rate shall apply to such contract, and the public 5 body shall be responsible to notify the contractor and each 6 subcontractor, of the revised rate. Two or more investigatory 7 hearings under this Section on the issue of establishing a 8 new prevailing wage classification for a particular craft or 9 type of worker shall be consolidated in a single hearing 10 before the Department. Such consolidation shall occur 11 whether each separate investigatory hearing is conducted by a 12 public body or the Department. The party requesting a 13 consolidated investigatory hearing shall have the burden of 14 establishing that there is no existing prevailing wage 15 classification for the particular craft or type of worker in 16 any of the localities under consideration. 17 It shall be mandatory upon the contractor or construction 18 manager to whom a contract for public works is awarded to 19 post, at a location on the project site of the public works 20 that is easily accessible to the workers engaged on the 21 project, the prevailing wage rates for each craft or type of 22 worker or mechanic needed to execute the contract or project 23 or work to be performed. A failure to post a prevailing wage 24 rate as required by this Section is a violation of this Act. 25 (Source: P.A. 92-783, eff. 8-6-02.) 26 Section 99. Effective date. This Act takes effect upon 27 becoming law.".