HB3307 97TH GENERAL ASSEMBLY

LRB097 08841 HLH 48971 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3307

Introduced 2/24/2011, by Rep. Jil Tracy

SYNOPSIS AS INTRODUCED:

20 ILCS 689/5
20 ILCS 689/10
20 ILCS 689/27 new
30 ILCS 105/5.786 new

Amends the Illinois Renewable Fuels Development Program Act and the State Finance Act. Provides that the Department of Commerce and Economic Opportunity shall create and operate an E85 Market Expansion Program that provides debit cards, credit cards, E85 coupons, or some other form of negotiable instrument as determined by the Department for $500 in credit towards the purchase price of E85 fuel purchased within Illinois. Requires program applicants to have purchased a new flexible fuel vehicle within the 12-month period prior to submitting the application to be eligible for the Program. Provides that only one Program grant shall be made to the owner of any vehicle during the life of that vehicle. Creates the E85 Market Expansion Fund. Makes other changes. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

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

Section 5. The Illinois Renewable Fuels Development Program Act is amended by changing Sections 5 and 10 and by adding Section 27 as follows:

(20 ILCS 689/5)

Sec. 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 increase the size of 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.

(Source: P.A. 93-15, eff. 6-11-03.)

(20 ILCS 689/10)

Sec. 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 Economic Opportunity.

"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 Economic Opportunity.

"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.

"Flexible fuel vehicle" has the meaning set forth in Section 22 of the Alternate Fuels Act.

"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 defined as a "labor organization" under Section 2 of the National Labor Relations Act (29 U.S.C. 152).

"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, including its agents, 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.

(Source: P.A. 93-15, eff. 6-11-03; 93-618, eff. 12-11-03; 94-793, eff. 5-19-06.)

(20 ILCS 689/27 new)

Sec. 27. E85 Market Expansion Program.

(a) The Department shall, subject to appropriation, create and administer the E85 Market Expansion Program. Under this program, the Department must solicit and collect applications from persons who have purchased a new flexible fuel vehicle within the 12-month period prior to submitting the application. Approved applicants shall be eligible for Program distributions.

(b) The Program shall distribute debit cards, credit cards, E85 coupons, or some other form of negotiable instrument as determined by the Department that authorizes the approved applicant $500 in credit towards the purchase price of E85 fuel purchased within Illinois. Only one distribution shall be made to the owner of any vehicle during the life of that vehicle.

(c) The E85 Market Expansion Fund is established as a special fund in the State treasury. Moneys in the Fund may be used, subject to appropriation, only for the purposes set forth in this Section. Interest earned on moneys in the Fund must be deposited into the Fund. The Department may retain 5% of the moneys in the Fund for administrative costs of the Program.

(d) The Department shall have access to Secretary of State motor vehicle registration records and other State records to enable verification of these applications.

(e) The Department shall adopt necessary rules for the implementation of this Section, including rules for the solicitation, collection, and approval of applications and for the operation of the program distributions.

Section 10. The State Finance Act is amended by adding Section 5.786 as follows:

(30 ILCS 105/5.786 new)

Sec. 5.786. E85 Market Expansion Fund.

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