96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0651

 

Introduced 02/06/09, by Rep. Frank J. Mautino

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 689/15
20 ILCS 689/15.1 new
20 ILCS 689/15.2 new
20 ILCS 689/15.3 new
20 ILCS 689/15.4 new
20 ILCS 689/20
30 ILCS 105/5.719 new
30 ILCS 105/6z-80 new

    Amends the Illinois Renewable Fuels Development Program Act. Provides that facilities that produce ethanol for gasohol or majority blended ethanol fuel shall receive a grant equal to 10 cents per gallon of annual production capacity, not to exceed $10,000,000 for each facility. Provides that the Department of Commerce and Economic Opportunity must establish the Renewable Fuels Majority Blended Ethanol Infrastructure Program for the purpose of providing grants to units of local government and gasoline stations or service stations offering to the public retail sales of motor fuel. Creates the Renewable Fuels Competitive Commercialization Grant Oversight Committee. Sets forth the membership of the Committee. Provides that the Department of Commerce and Economic Opportunity must establish the Renewable Fuels Rail Infrastructure Assistance Program. Provides ethanol production facilities with grants to reduce their water and energy usage and carbon emissions. Provides that grants awarded from the Renewable Fuels Development Program Fund are subject to certain limitations. Amends the State Finance Act to make conforming changes. Imposes limits on rulemaking authority. Effective immediately.


LRB096 04385 JDS 14434 b

 

 

A BILL FOR

 

HB0651 LRB096 04385 JDS 14434 b

1     AN ACT concerning State government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Renewable Fuels Development
5 Program Act is amended by changing Sections 15 and 20 and by
6 adding Sections 15.1, 15.2, 15.3, and 15.4 as follows:
 
7     (20 ILCS 689/15)
8     Sec. 15. Illinois Renewable Fuels Development Program.
9     (a) The Department must develop and administer the Illinois
10 Renewable Fuels Development Program to assist in the
11 construction, modification, alteration, or retrofitting of
12 renewable fuel plants in Illinois. The recipient of a grant
13 under this Section must:
14         (1) be constructing, modifying, altering, or
15     retrofitting a plant in the State of Illinois;
16         (2) be constructing, modifying, altering, or
17     retrofitting a plant that has a base total annual
18     production capacity of no less than 20,000,000 30,000,000
19     gallons of renewable fuel per year; and
20         (3) enter into a project labor agreement as prescribed
21     by Section 25 of this Act.
22     (b) Grant applications must be made on forms provided by
23 and in accordance with procedures established by the

 

 

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1 Department.
2     (c) The Department must give preference to applicants that
3 use Illinois agricultural products in the production of
4 renewable fuel at the plant for which the grant is being
5 requested.
6     (d) Facilities that produce ethanol for gasohol or majority
7 blended ethanol fuel shall receive a grant equal to 10 cents
8 per gallon of annual production capacity, not to exceed
9 $10,000,000 for each facility.
10     Rulemaking authority to implement this Section, if any, is
11 conditioned on the rules being adopted in accordance with all
12 provisions of the Illinois Administrative Procedure Act and all
13 rules and procedures of the Joint Committee on Administrative
14 Rules; any purported rule not so adopted, for whatever reason,
15 is unauthorized.
16 (Source: P.A. 93-15, eff. 6-11-03.)
 
17     (20 ILCS 689/15.1 new)
18     Sec. 15.1. Renewable Fuels Majority Blended Ethanol
19 Infrastructure Program. The Department must establish and
20 administer the Renewable Fuels Majority Blended Ethanol
21 Program to encourage the construction, installation, and
22 marketing of majority blended ethanol, as defined in Section
23 3-44 of the Use Tax Act. The Renewable Fuels Majority Blended
24 Ethanol Program shall provide financial assistance for units of
25 local government and petroleum distribution centers to install

 

 

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1 the necessary infrastructure for the use of majority blended
2 ethanol.
3     The Department must establish the program for the purpose
4 of providing grants to units of local government and gasoline
5 stations or service stations offering to the public retail
6 sales of motor fuel that operate or will be operating majority
7 blended ethanol fueling distribution infrastructure. A unit of
8 local government applying for a grant under this program shall
9 receive a matching grant equaling 50% of the total cost of
10 installation of a majority blended ethanol distribution pump,
11 but not to exceed $40,000. Gasoline stations or service
12 stations shall be eligible to receive a matching grant equal to
13 50% the cost of installation per pump location, but not to
14 exceed a total of $250,000 in grants annually for each gasoline
15 station or service station retailer for locations in the
16 gasoline station or service station retailer's ownership and
17 control. The Department shall adopt necessary rules and forms
18 for the implementation of this Section.
19     Rulemaking authority to implement this Section, if any, is
20 conditioned on the rules being adopted in accordance with all
21 provisions of the Illinois Administrative Procedure Act and all
22 rules and procedures of the Joint Committee on Administrative
23 Rules; any purported rule not so adopted, for whatever reason,
24 is unauthorized.
 
25     (20 ILCS 689/15.2 new)

 

 

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1     Sec. 15.2. Renewable Fuels Competitive Commercialization
2 Program. The Department must develop and administer the
3 Renewable Fuels Competitive Commercialization Program to
4 coordinate renewable fuel research and distribution of grant
5 funds to bring the State to the forefront of renewable fuel
6 development. The Renewable Fuels Competitive Commercialization
7 Grant Oversight Committee is established to review the grants
8 and make recommendations to the Director for awarding grants as
9 provided in this Section. The oversight committee shall be
10 comprised of 11 members. The members shall be appointed as
11 follows: the Director, or his or her designee; the Speaker of
12 the House of Representatives, or his or her designee; the
13 President of the Senate, or his or her designee; the Minority
14 Leader of the House of Representatives, or his or her designee;
15 the Minority Leader of the Senate, or his or her designee; and
16 the following members to be appointed by the Director:
17     (1) one member representing a general statewide
18 agricultural association;
19     (2) one member representing an association representing
20 producers of corn;
21     (3) one member representing an association representing
22 producers of soybeans;
23     (4) 2 members representing labor organizations affiliated
24 with the Illinois AFL-CIO; and
25     (5) one member representing renewable fuels production
26 facilities.

 

 

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1     The Department must solicit proposals for grants that
2 provide funds for projects, including but not limited to,
3 adding value to bio-fuel co-products (such as Distillers Dried
4 Grain with solubles (DDGs)), increasing vehicle mileage, and
5 reducing the water usage in manufacturing bio-fuel to increase
6 the competitiveness of renewable fuels produced in the State.
7 Preference shall be given to projects in partnership with
8 industry or pilot-scale demonstration projects that advance
9 the State's leadership in the development of a bio-based
10 economy.
11     Rulemaking authority to implement this Section, if any, is
12 conditioned on the rules being adopted in accordance with all
13 provisions of the Illinois Administrative Procedure Act and all
14 rules and procedures of the Joint Committee on Administrative
15 Rules; any purported rule not so adopted, for whatever reason,
16 is unauthorized.
 
17     (20 ILCS 689/15.3 new)
18     Sec. 15.3. Renewable Fuels Rail Infrastructure Assistance
19 Program. The Department must establish and administer the
20 Renewable Fuels Rail Infrastructure Assistance Program to
21 assist in the construction and installation of (i) railroad
22 side track and turnouts to provide rail service to renewable
23 fuels facilities, (ii) side track and turnouts for railroad
24 storage and collection areas for renewable fuels and renewable
25 fuel inputs, and (iii) side track, turnouts, and other

 

 

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1 necessary infrastructure for renewable fuel and renewable fuel
2 co-products container shipping. Only one grant for the purpose
3 stated under item (iii) of this Section shall be awarded each
4 year. The recipient of a grant under this Section must enter
5 into a project labor agreement for the rail infrastructure
6 project as provided in Section 25 of this Act. Grant
7 applications shall be submitted on forms prescribed by the
8 Department.
9     Rulemaking authority to implement this Section, if any, is
10 conditioned on the rules being adopted in accordance with all
11 provisions of the Illinois Administrative Procedure Act and all
12 rules and procedures of the Joint Committee on Administrative
13 Rules; any purported rule not so adopted, for whatever reason,
14 is unauthorized.
 
15     (20 ILCS 689/15.4 new)
16     Sec. 15.4. Renewable Fuels Technology Program Fund. To
17 provide incentives to ethanol production facilities to reduce
18 their water and energy usage to better manage our resources and
19 reduce carbon emissions, ethanol facilities modifying their
20 production process or incorporating new technologies in their
21 new construction are also eligible for the following funding:
22         (1) A grant of 10% up to $2,500,000 of the additional
23     costs of reducing their net water usage to 2.8 gallons of
24     water per gallon of ethanol.
25         (2) A grant of 10% up to $4,000,000 of the costs to

 

 

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1     reduce by 20% the natural gas required to produce a gallon
2     of absolute ethanol using a base energy requirement for a
3     dry mill natural gas fired ethanol plant of 34,500 BTUs per
4     gallon of ethanol.
5         (3) A grant of 10% up to $2,500,000 of the costs to add
6     a co-generation system designed to provide the electrical
7     needs of the facility.
8     Rulemaking authority to implement this Section, if any, is
9 conditioned on the rules being adopted in accordance with all
10 provisions of the Illinois Administrative Procedure Act and all
11 rules and procedures of the Joint Committee on Administrative
12 Rules; any purported rule not so adopted, for whatever reason,
13 is unauthorized.
 
14     (20 ILCS 689/20)
15     Sec. 20. Grants. Subject to appropriation, the Director is
16 authorized to award Renewable Fuels Development Program Fund
17 grants to eligible applicants. The annual aggregate amount of
18 grants awarded under this Section is subject to the following
19 limits:
20         (1) grants awarded under the Illinois Renewable Fuels
21     Development Program awarded shall not exceed $20,000,000
22     annually in fiscal years 2010 and 2011 and $15,000,000
23     thereafter; no more than $5,000,000 annually of these grant
24     funds may be used for bio-diesel plants; $20,000,000.
25         (2) grants awarded under the Renewable Fuels Majority

 

 

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1     Blended Ethanol Infrastructure Program may not exceed
2     $3,500,000 annually for fiscal years 2010 through 2015;
3         (3) grants awarded under the Renewable Fuels Rail
4     Infrastructure Assistance Program may not exceed
5     $5,000,000 annually for fiscal years 2010 through 2013;
6         (4) grants awarded under the Renewable Fuels
7     Technology Program Fund may not exceed $10,000,000
8     annually for fiscal years 2010 through 2015.
9     Rulemaking authority to implement this Section, if any, is
10 conditioned on the rules being adopted in accordance with all
11 provisions of the Illinois Administrative Procedure Act and all
12 rules and procedures of the Joint Committee on Administrative
13 Rules; any purported rule not so adopted, for whatever reason,
14 is unauthorized.
15 (Source: P.A. 93-15, eff. 6-11-03; 93-618, eff. 12-11-03;
16 94-839, eff. 6-6-06.)
 
17     Section 10. The State Finance Act is amended by adding
18 Sections 5.719 and 6z-80 as follows:
 
19     (30 ILCS 105/5.719 new)
20     Sec. 5.719. The Renewable Fuels Development Program Fund.
 
21     (30 ILCS 105/6z-80 new)
22     Sec. 6z-80. Renewable Fuels Development Program Fund. The
23 Renewable Fuels Development Program Fund is created as a

 

 

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1 special fund in the State treasury. Moneys in the Fund may be
2 used by the Department of Commerce and Economic Opportunity,
3 subject to appropriation, for the Illinois Renewable Fuels
4 Development Program, the Renewable Fuels Majority Blended
5 Ethanol Infrastructure Program, the Renewable Fuels
6 Competitive Commercialization Program, the Renewable Fuels
7 Rail Infrastructure Assistance Program, and other renewable
8 energy programs as set forth in Section 20 of the Illinois
9 Renewable Fuels Development Program Act.
10     Moneys received for the purposes of this Section,
11 including, without limitation, fund transfers, gifts, grants,
12 and awards from any public or private entity, must be deposited
13 into the Fund. Any interest earned on moneys in the Fund must
14 be deposited into the Fund.
15     There shall be deposited into the Renewable Fuels
16 Development Program Fund those bond proceeds and other moneys
17 that may, from time to time, be provided by law. If the moneys
18 provided by law are not sufficient to provide the annual
19 funding level in the Renewable Fuels Development Program Fund
20 at the levels prescribed below, the State Comptroller must
21 direct the State Treasurer to transfer from the General Revenue
22 Fund to the Renewable Fuels Development Program Fund, no later
23 than February 1, 2009 and on December 1 each year thereafter,
24 the necessary amount to provide the funds at the level
25 specified for each fiscal year below:
26    Fiscal Year     Amount

 

 

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1    2010 through 2011     $38,500,000
2    2012     $23,500,000
3    2013     $22,500,000
4    2014 and 2015     $17,500,000
5    2016     $15,000,000
6     Rulemaking authority to implement this Section, if any, is
7 conditioned on the rules being adopted in accordance with all
8 provisions of the Illinois Administrative Procedure Act and all
9 rules and procedures of the Joint Committee on Administrative
10 Rules; any purported rule not so adopted, for whatever reason,
11 is unauthorized.
 
12     Section 99. Effective date. This Act takes effect upon
13 becoming law.