Illinois General Assembly - Full Text of SB2083
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Full Text of SB2083  95th General Assembly



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1     AN ACT concerning finance.
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4     Section 1. Short title. This Act may be cited as the
5 Illinois Diesel Emissions Reduction Act.
6     Section 5. Legislative findings and purpose. The
7 Legislature hereby finds and declares that:
8     (a) Diesel exhaust particle pollution poses a clear and
9 present health risk to the people of Illinois. The United
10 States Environmental Protection Agency has classified diesel
11 exhaust as a likely human carcinogen, and has identified diesel
12 particulate matter and diesel exhaust organic gases as toxic
13 air pollutants. Diesel exhaust is also a prime contributor to
14 airborne fine particle pollution that is linked to premature
15 death and other serious cardiovascular and pulmonary problems
16 such as heart attacks, abnormal heart rhythms,
17 atherosclerosis, stroke, asthma attacks, permanent respiratory
18 damage, and retardation of lung growth in children.
19     (b) The health impacts from diesel emissions particularly
20 affect children, the elderly, and people with weakened immune
21 systems.
22     (c) Particularly high concentrations of diesel emissions
23 often occur in heavily traveled transportation corridors,



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1 intermodal yards, bus depots, and construction sites; these
2 diesel "hot spots" often are found in densely populated urban
3 areas, disproportionately impacting ethnic minorities and
4 people of lower economic status.
5     (d) Diesel engine crankcases also are a source of emissions
6 that can seep into the cabin and expose vehicle drivers and
7 passengers to harmful diesel emissions.
8     (e) Diesel exhaust also contains black carbon emissions,
9 which contribute to global climate change.
10     (f) Reduction of diesel emissions can help address these
11 human health and climate problems.
12     (g) The United States Environmental Protection Agency has
13 enacted requirements over the past few years requiring the
14 substantial reduction of emissions from new diesel engines in
15 both heavy-duty highway vehicles and land-based nonroad
16 equipment. However, these regulations do not apply to any of
17 the over 11,000,000 existing diesel engines in the United
18 States, most of which emit substantially more pollution and
19 often remain in service for 10 to 30 years depending on the
20 type of engine and equipment.
21     (h) Practical, cost-effective measures to substantially
22 reduce diesel particulate emissions are available today, and
23 can be applied to many existing diesel engines. The same
24 technology that limits diesel pollution from new diesel engines
25 can be retrofitted onto existing engines or applied in new
26 replacement engines to reduce diesel emissions by 85% or more.



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1     (i) Therefore, the purpose of this Funding Program is to
2 help minimize the public health risks from exposure to diesel
3 particulate emissions as expeditiously as practical.
4     Section 10. Definitions. For purposes of this Act:
5     (a) "Auxiliary power unit" means a portable,
6 vehicle-mounted system that provides climate control and power
7 for a diesel vehicle interior cabin without using the
8 propulsion engine.
9     (b) "CARB" means the California Air Resources Board.
10     (c) "Certified engine configuration" means a new, rebuilt,
11 or remanufactured engine configuration:
12         (1) that has been certified or verified by USEPA or
13     CARB;
14         (2) that meets or exceeds certain engine emissions
15     standards, as determined by IEPA; and
16         (3) in the case of a certified engine configuration
17     involving the replacement of an existing engine or vehicle,
18     an engine configuration that replaced an engine that was
19     removed from the vehicle and returned to the supplier for
20     remanufacturing to a more stringent set of engine emissions
21     standards or for scrappage.
22     (d) "Closed Crankcase Ventilation System" or "CCV" means
23 equipment that completely closes the crankcase of a diesel
24 engine to the atmosphere and routes the crankcase vapor to the
25 engine intake air system or the exhaust system.



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1     (f) "DOT" means the Department of Transportation.
2     (g) "Fleet" means one or more diesel vehicles or mobile or
3 stationary diesel engines owned or operated by the same person
4 or group of related persons.
5     (h) "Heavy duty diesel vehicle" means a motor vehicle with
6 a gross vehicle weight rating of at least 14,000 pounds that is
7 powered by a diesel engine.
8     (i) "IEPA" means the Illinois Environmental Protection
9 Agency.
10     (j) "Incremental cost" means the cost of an applicant's
11 emission reduction measure actions, less the baseline cost that
12 would otherwise be incurred by the applicant in the normal
13 course of business. Incremental costs may include added lease
14 or fuel costs as well as capital costs.
15     (k) "Level 3 Control" means a Verified Diesel Emission
16 Control Device that achieves a particulate matter (PM) emission
17 reduction of 85% or more from uncontrolled engine emission
18 levels, or that reduces emissions to less than or equal to 0.01
19 grams of PM per brake horsepower-hour. Level 3 Control includes
20 repowering or replacing the existing diesel engine with an
21 engine meeting USEPA's 2007 Heavy-duty Highway Diesel
22 Standards, or in the case of a nonroad engine, an engine
23 meeting the USEPA's Tier 4 Nonroad Diesel Standards; Level 3
24 Control also includes new diesel engines meeting the emissions
25 standards.
26     (l) "Medium duty diesel vehicle" means a motor vehicle with



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1 a gross vehicle weight rating of at least 8,500 pounds and less
2 than 14,000 pounds that is powered by a diesel engine.
3     (m) "Motor vehicle" means any self-propelled vehicle
4 designed for transporting persons or property on a street or
5 highway, including an on-road diesel vehicle.
6     (n) "Nonroad engine" means an internal combustion engine
7 (including the fuel system) that is not used in a motor vehicle
8 or a vehicle used solely for competition, or that is not a
9 stationary source, except that this term shall apply to
10 internal combustion engines used to power generators,
11 compressors, or similar equipment used in any construction
12 program or project.
13     (o) "Nonroad vehicle" means a vehicle or piece of equipment
14 that is powered by a nonroad engine, 50 horsepower and greater,
15 and that is not a motor vehicle or a vehicle used solely for
16 competition, which shall include, but not be limited to,
17 excavators, backhoes, cranes, compressors, generators,
18 bulldozers, and similar equipment; unless otherwise indicated,
19 nonroad vehicles do not include locomotives or marine vessels.
20     (p) "Person" means any natural person, co-partnership,
21 firm, company, association, joint stock association,
22 corporation, or other like organization or entity.
23     (q) "PM" means particulate matter, a criteria pollutant
24 listed under Section 7408 of the federal Clean Air Act.
25     (r) "Public agency" means a state, city, county,
26 administration, department, division, bureau, board,



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1 commission, corporation, institution, or agency of government,
2 the expenses of which are paid in whole or in part from the
3 public treasury.
4     (s) "Retrofit" means to equip a diesel motor vehicle or
5 nonroad vehicle with new particulate emissions-reducing parts
6 or technology verified by USEPA or CARB after manufacture of
7 the original engine.
8     (t) "Ultra low sulfur diesel fuel" means diesel fuel that
9 has a sulfur content of no more than 15 parts per million.
10     (u) "USEPA" means the United States Environmental
11 Protection Agency.
12     (x) "Verified diesel emission control device" means:
13         (1) an emission control device or strategy that has
14     been verified to achieve a specified diesel PM reduction by
15     USEPA or CARB; or
16         (2) replacement or repowering with an engine that is
17     certified to specific PM emissions performance by USEPA or
18     CARB.
19     (y) "Verified technology" means a verified diesel emission
20 control device, an advanced truckstop electrification system,
21 or an auxiliary power unit.
22     Section 15. Mechanics of the Diesel Emissions Reduction
23 Funding Program.
24     (a) The Diesel Emissions Reduction Fund (the "Fund") is
25 hereby established as a special fund in the State treasury.



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1         (1) The Fund shall be administered by IEPA for the
2     benefit of the Diesel Emissions Reduction Funding Program
3     established under this Section.
4         (2) Interest earned on the Fund shall be credited to
5     the Fund.
6         (3) Moneys in the Fund shall be used only to implement
7     the Funding Program, provided that a maximum total of 2% of
8     the money in the Fund may be used for Fund administrative
9     costs incurred by both the IEPA and the Department of
10     Revenue. Moneys allocated to an eligible diesel emission
11     reduction measure but not expended in any fiscal year shall
12     be carried over to succeeding fiscal years.
13     (b) Establishment and Administration of the Funding
14 Program. Within one year after the effective date of this
15 Funding Program, IEPA, in consultation with the Department of
16 Revenue and after notice and public comment, shall promulgate
17 rules to establish and implement the Diesel Emissions Reduction
18 Funding Program in accordance with this Act.
19         (1) The Funding Program shall consist of either the
20     Grant Program or the Rebate Program established pursuant to
21     this Act, or both programs, as determined by IEPA in its
22     sole discretion.
23         (2) If IEPA elects to disburse Funding Program funds
24     pursuant to the Grant Program, IEPA shall establish and
25     administer that program and shall provide grants and
26     low-cost revolving loans from the Fund, on a competitive



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1     basis, to eligible measures to achieve significant
2     reductions of diesel particulate emissions in accordance
3     with the provisions of subsection (c).
4         (3) If IEPA elects to disburse Funding Program funds
5     pursuant to the Rebate Program, IEPA shall establish and
6     administer that program and shall provide rebates from the
7     Fund in accordance with subsection (d).
8         (4) In administering the Funding Program and in
9     accordance with the requirements of this program, IEPA
10     shall:
11             (A) manage Funding Program funds and oversee the
12         Funding Program;
13             (B) produce guidelines, protocols, and criteria
14         for eligible emission reduction measures;
15             (C) develop methodologies for evaluating emission
16         reduction measure benefits and cost-effectiveness;
17             (D) develop procedures for monitoring whether the
18         emissions reductions projected for grants awarded for
19         emission reduction measures under this Act are
20         actually achieved;
21             (E) prepare reports regarding the progress and
22         effectiveness of the Funding Program; and
23             (F) take all appropriate and necessary actions so
24         that emissions reductions achieved through the Funding
25         Program may be credited by USEPA to the appropriate
26         emissions reduction objectives in the State



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1         implementation plan.
2     (c) Grant Program. Any Grant Program established by IEPA
3 pursuant to subsection (b)(1) shall be implemented in
4 accordance with the following provisions:
5         (1) IEPA shall annually allocate at its discretion some
6     or all of the moneys available in the Fund to the Grant
7     Program. Grant Program funds not expended in a given year
8     shall be transferred to the Grant Program or any Rebate
9     Program established under subsection (d) for the following
10     year at IEPA's discretion.
11         (2) Fund Distribution. Subject to the provisions of
12     subsection (a)(4), IEPA shall distribute funds available
13     for each fiscal year for eligible emission reduction
14     measures under the Grant Program.
15         (3) Applications.
16             (A) To receive a grant or loan under the Grant
17         Program, the applicant shall submit to IEPA an
18         application including such information IEPA may
19         require.
20             (B) An application under this subsection shall
21         include:
22                 (i) a description of the air quality of the
23             area in which the emission reduction measure
24             fleets will operate;
25                 (ii) a description of the emission reduction
26             measure proposed by the applicant, including:



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1                     (I) any certified engine configuration or
2                 verified technology proposed to be used or
3                 funded in the emission reduction measure; and
4                     (II) the means by which the emission
5                 reduction measure will achieve a significant
6                 reduction in diesel emissions;
7                 (iii) an evaluation (using methodology
8             approved by IEPA) of the quantifiable and
9             unquantifiable benefits of the emissions
10             reductions of the proposed emission reduction
11             measure;
12                 (iv) an estimate of the cost of the proposed
13             emission reduction measure;
14                 (v) a description of the age and expected
15             lifetime control of the equipment to be used or
16             funded in the proposed emission reduction measure;
17                 (vi) a description of the diesel fuel
18             available in the areas to be served by the proposed
19             emission reduction measure, including the sulfur
20             content of the fuel;
21                 (vii) provisions for the monitoring and
22             verification of the emission reduction measure;
23             and
24                 (viii) such other information as may be
25             required by IEPA.
26         (4) Eligibility.



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1             (A) A proposed emission reduction measure must
2         meet the requirements of this Act to be eligible for a
3         grant or loan under the Grant Program.
4             (B) IEPA may consider for funding the following
5         types of emission reduction measures:
6                 (i) installation of a retrofit technology
7             (including any incremental costs of a repowered or
8             new diesel engine) that significantly reduces
9             particulate emissions through development and
10             implementation of a certified engine configuration
11             or a verified diesel emission control device for a
12             medium-duty or heavy-duty diesel motor vehicle, a
13             diesel nonroad vehicle, a commercial marine engine
14             or a locomotive;
15                 (ii) installation of a CCV on any vehicle or
16             equipment described in subsection (B)(i); and
17                 (iii) programs or emission reduction measures
18             to reduce long-duration idling using verified
19             technology involving a vehicle described in
20             subsection (B)(i); provided that truckstop
21             electrification facilities shall be eligible for
22             low-cost revolving loans but not eligible for
23             grants.
24             (C) In providing a grant or loan under the Grant
25         Program, IEPA shall give priority to otherwise
26         eligible emission reduction measures that, as



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1         determined by IEPA:
2                 (i) maximize public health benefits;
3                 (ii) are cost-effective;
4                 (iii) serve areas:
5                     (I) with the highest population density;
6                     (II) that are poor air quality areas,
7                 including areas identified by IEPA as:
8                         (a) in nonattainment or maintenance of
9                     national ambient air quality standards for
10                     a criteria pollutant;
11                         (b) areas with toxic air pollutant
12                     concerns;
13                     (III) that receive a disproportionate
14                 quantity of air pollution from a diesel fleets,
15                 including truckstops, ports, rail yards,
16                 terminals, and distribution centers; or
17                 (iv) include a certified engine configuration
18             or verified technology that has a long expected
19             useful life;
20                 (v) will maximize the useful life of any
21             certified engine configuration or verified
22             technology used or funded by the project;
23                 (vi) conserve diesel fuel; and
24                 (vii) use ultra low sulfur diesel fuel.
25             (D) For a proposed emission reduction measure to
26         qualify for the Funding Program, other than a project



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1         involving a marine vessel or engine, not less than 75%
2         of vehicle miles traveled or hours of operation
3         projected for the 5 years immediately following the
4         award of a grant must be projected to take place in
5         this State. For a proposed emission reduction measure
6         involving a marine vessel or engine, the vessel or
7         engine must be operated in the waterways adjacent to or
8         within Illinois for a sufficient amount of time over
9         the lifetime of the measure, as determined by IEPA, to
10         meet the cost-effectiveness requirements of subsection
11         (c)(5).
12             (E) Each proposed emission reduction measure must
13         meet the cost-effectiveness requirements of subsection
14         (c)(5).
15             (F) A proposed emission reduction measure based on
16         the use of a certified engine configuration or verified
17         technology must document, in a manner acceptable to
18         IEPA, a reduction in particulate emissions of at least
19         50% (compared with the baseline emissions adopted by
20         IEPA for the relevant engine year and application to
21         the extent not provided pursuant of the relevant CARB
22         or USEPA verification process). Three years after the
23         enactment of this Act, after study of available
24         emissions reduction technologies, and after public
25         notice and comment, IEPA may increase the minimum
26         percentage reduction in particulate emissions required



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1         by this subsection to improve the ability of the
2         Funding Program to achieve its goals.
3         (5) Cost-effectiveness.
4             (A) For purposes of this Act, "cost-effectiveness"
5         means the total dollar amount divided by the total
6         number of tons of particulate matter reduction
7         attributable to that expenditure. In calculating
8         cost-effectiveness, one-time grants of money at the
9         beginning of a project shall be annualized using a time
10         value of public funds or discount rate determined for
11         each project by IEPA, taking into account the interest
12         rate on bonds, interest earned by State funds, and
13         other factors IEPA considers appropriate.
14             (B) IEPA shall establish reasonable methodologies
15         for evaluating emission reduction measure
16         cost-effectiveness consistent with subsection (5)(A).
17             (C) Except as provided by subsection (5)(F), and
18         except for installation of CCVs under subsection
19         (4)(B)(ii), IEPA may not award a grant for a proposed
20         emission reduction measure under the Grant Program the
21         cost-effectiveness of which, calculated in accordance
22         with subsections (5)(A) and (B) and criteria developed
23         thereunder, exceeds $135,000 per ton of PM emissions.
24         This subsection does not restrict IEPA authority under
25         other law to require emissions reductions with a
26         cost-effectiveness that exceeds $135,000 per ton.



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1             (D) IEPA may not award a grant that provides an
2         amount that exceeds the incremental cost of the
3         proposed emission reduction measure.
4             (E) In determining the amount of a grant under this
5         Act, IEPA shall reduce the incremental cost of a
6         proposed new purchase, retrofit, repower, or add-on
7         equipment emission reduction measure by the value of
8         any existing financial incentive that directly reduces
9         the cost of the proposed measure, including tax credits
10         or deductions, other grants, loans, rebates, or any
11         other public financial assistance.
12             (F) Adjustment of cost-effectiveness. Based upon a
13         study of available emissions reduction technologies
14         and costs and after public notice and comment, IEPA may
15         change the values of the maximum grant award criteria
16         established in subsection (5)(C) to account for
17         inflation or to improve the ability of the Grant
18         Program to achieve its goals.
19     (d) Rebate Program. Any Rebate Program established by IEPA
20 pursuant to subsection (b)(1) shall be implemented in
21 accordance with the following provisions:
22         (1) IEPA shall annually allocate at its discretion some
23     or all of the moneys available in the Fund to the Rebate
24     Program. Rebate Program funds not expended in a given year
25     shall be transferred to the Rebate Program or any Grant
26     Program established under subsection (c) for the following



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1     year at IEPA's discretion.
2         (2) A retrofit vendor or owner of an eligible vehicle
3     who meets the requirements of this subsection shall be
4     eligible to receive a rebate under the Rebate Program; for
5     purposes of this subsection, "eligible vehicle" shall mean
6     a vehicle that meets the requirements of this subsection
7     and that is described in subsection (c)(4)(B)(i).
8         (3) Moneys from the Fund will be provided in the rebate
9     amount to defray the cost of purchase and installation of
10     retrofitting an eligible vehicle with a Level 3 Control in
11     combination with a CCV.
12         (4) Within 180 days after the effective date of this
13     Act, IEPA shall establish the initial rebate amount for
14     retrofits of various types of eligible vehicles. IEPA shall
15     review the appropriateness of the amount no less frequently
16     than annually and may change the rebate amount to improve
17     the ability of the Rebate Program to achieve its goals.
18         (5) In order to receive a rebate, an eligible vehicle
19     owner or retrofit vendor shall:
20             (A) submit to IEPA a completed rebate reservation
21         form including such information IEPA may require with
22         respect to each rebate sought;
23             (B) within 120 days of submission of a rebate
24         reservation form, the owner or vendor shall complete
25         the retrofit pertaining to the rebate reservation
26         form, and shall submit a completed IEPA reimbursement



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1         request form including certification of retrofit
2         completion and compliance with all requirements of
3         this subsection and containing such other information
4         and such other conditions as IEPA may require.
5         (6) Rebates shall be provided on a first come, first
6     served basis, with priority established based upon the date
7     of IEPA receipt of a completed reservation form pursuant to
8     subsection (5)(A); provided that, if the retrofits are not
9     completed and the reimbursement request form is not
10     submitted to IEPA within the 120 day period as required by
11     subsection (5)(B), then IEPA may reduce the amount of the
12     rebate or take such other action as it has established by
13     regulations promulgated pursuant to this Funding Program.
14         (7) To the extent of available funds allocated to the
15     Rebate Program, IEPA shall pay the owner or vendor the
16     rebate within 60 days of receipt of a timely, complete, and
17     accurate reimbursement form.
18         (8) Owners of eligible vehicles for which rebates are
19     paid must:
20             (A) meet the requirements of subsection (c)(4)(D);
21             (B) fuel the vehicle with ultra low sulfur diesel
22         fuel; and
23             (C) maintain the vehicle and Level 3 Controls
24         according to manufacturer specifications.
25         (9) The retrofit vendor to eligible vehicles for which
26     rebates are provided must honor all warranty provisions



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1     according to their verification.
2     (e) Emission Reduction Credits.
3         (1) An emission reduction measure funded under the
4     Funding Program established under this Section may not be
5     used for credit under any State or federal emissions
6     reduction credit averaging, banking, or trading program.
7         (2) An emissions reduction generated by an emission
8     reduction measure funded under the Funding Program
9     established under this Section:
10             (A) may not be used as a marketable emissions
11         reduction credit or to offset any emissions reduction
12         obligation; but
13             (B) may be used to demonstrate conformity with the
14         State implementation plan.
15         (3) An emission reduction measure involving a new
16     measure that would otherwise generate marketable credits
17     under State or federal emissions reduction credit
18     averaging, banking, or trading programs is not eligible for
19     funding under the Funding Program established under this
20     Section unless:
21             (A) the measure includes the transfer of the
22         reductions that would otherwise be marketable credits
23         to the State implementation plan; and
24             (B) the reductions are permanently retired.
25     (f) Funding Program Reports.
26         (1) Not later than December 1, 2009, and not later than



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1     December 1 of every second year thereafter, IEPA shall
2     publish and submit to the legislature a report of the
3     implementation of the provisions of this Funding Program.
4     IEPA shall provide notice and an opportunity for public
5     comment and public hearing on each draft biennial report
6     and, in producing a final biennial report, shall consider
7     and respond to all significant comments received; the
8     report shall be publicly available, and IEPA shall post it
9     on its website.
10         (2) The report must:
11             (A) include a review of each pollution-reduction
12         measure funded under any Grant Program, the amount
13         granted for the emission reduction measure, the
14         emissions reductions attributable to the emission
15         reduction measure, and the cost-effectiveness of the
16         emission reduction measure; IEPA shall also conduct an
17         annual review of any Rebate Program, including the
18         total rebates paid, the total retrofits installed and
19         the aggregate emission reductions attributable to
20         those retrofits;
21             (B) include a summary of IEPA's Funding Program
22         implementation activities under this Section;
23             (C) account for money received, money disbursed as
24         grants, money reserved for grants based on project
25         approvals, money disbursed as rebates, any recommended
26         transfer of money between allocations, and must



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1         estimate future demand for grant and rebate funds under
2         the Funding Program;
3             (D) describe the overall effectiveness of the
4         Funding Program in delivering particulate emissions
5         reductions and other emission reductions as
6         co-benefits;
7             (E) evaluate the effectiveness of the Funding
8         Program in soliciting and evaluating project
9         applications, providing awards in a timely manner, and
10         monitoring project implementation;
11             (F) describe adjustments made to project selection
12         criteria and recommend any further needed changes or
13         adjustments to the grant programs, including changes
14         in grant award criteria, administrative procedures, or
15         statutory provisions that would enhance the Funding
16         Program's effectiveness and efficiency;
17             (G) describe any adjustments made to the maximum
18         cost-effectiveness amount and award amount;
19             (H) evaluate the benefits of addressing additional
20         pollutants as part of the Funding Program; and
21             (I) include legislative recommendations necessary
22         to improve the effectiveness of the Funding Program.
23     Section 20. Miscellaneous.
24     (a) Equitable Relief Authorized. In addition to other
25 remedies provided in this Funding Program, IEPA may seek



SB2083 Engrossed - 21 - LRB095 19203 BDD 45450 b

1 injunctive relief in any court of competent jurisdiction to
2 enforce any provision of this Funding Program.
3     (b) Severability. If any clause, sentence, paragraph,
4 section or provision of this Funding Program shall be adjudged
5 by any court of competent jurisdiction to be invalid, such
6 judgment shall not affect, impair, or invalidate the remainder
7 of this Funding Program, but shall be confined in its operation
8 to the clause, sentence, paragraph, section, or provision of
9 this Funding Program directly involved in the controversy in
10 which the judgment was rendered.
11     Section 95. The State Finance Act is amended by adding
12 Section 5.708 as follows:
13     (30 ILCS 105/5.708 new)
14     Sec. 5.708. The Diesel Emissions Reduction Fund.
15     Section 99. Effective date. This Act takes effect upon
16 becoming law.