HB4652enr 96TH GENERAL ASSEMBLY

HB4652 Enrolled LRB096 14977 JDS 29882 b

AN ACT concerning revenue.

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

Section 5. The Use Tax Act is amended by changing Section 3-40 as follows:

(35 ILCS 105/3-40) (from Ch. 120, par. 439.3-40)

Sec. 3-40. Gasohol. As used in this Act, "gasohol" means a motor fuel that is a denatured ethanol and gasoline blend of denatured ethanol and gasoline that contains (i) no more than 1.25% water by weight and (ii) the maximum proportion of ethanol authorized by the United States Environmental Protection Agency under Section 211 of the Clean Air Act. However, if, on or after June 1, 2010, the United States Environmental Protection Agency (USEPA), while acting under the authority granted it in Section 211 of the Clean Air Act, authorizes an increase in the maximum proportion of ethanol that may be included in motor fuel blends, then (i) a motor fuel blend containing a proportion of ethanol greater than that which was authorized prior to the USEPA action shall not be treated as gasohol under the Retailers' Occupation Tax Act, the Service Occupation Tax Act, the Use Tax Act, or the Service Use Tax Act, until (A) the State Fire Marshal, the Director of Agriculture, and the Director of the Environmental Protection Agency have each separately certified to the Director of Revenue that the new motor fuel blend meets the definition of "gasohol" in this Section and that the blend can be legally and safely produced and delivered to consumers with non-flex fuel vehicles and (B) the State Fire Marshal has also certified that the fuel delivery infrastructure is safe and (ii) a motor fuel blend containing a proportion of ethanol equal to or less than that which was authorized prior to the USEPA action shall, for 180 days after the Director of Revenue receives the last of the required certifications, continue to be treated as gasohol under the Retailers' Occupation Tax Act, the Service Occupation Tax Act, the Use Tax Act, and the Service Use Tax Act. The blend must contain 90% gasoline and 10% denatured ethanol. A maximum of one percent error factor in the amount of denatured ethanol used in the blend is allowable to compensate for blending equipment variations. Any person who knowingly sells or represents as gasohol any fuel that does not qualify as gasohol under this Act is guilty of a business offense and shall be fined not more than $100 for each day that the sale or representation takes place after notification from the Department of Agriculture that the fuel in question does not qualify as gasohol.

(Source: P.A. 93-724, eff. 7-13-04.)