093_HB0046ham004 LRB093 02098 SJM 16676 a 1 AMENDMENT TO HOUSE BILL 46 2 AMENDMENT NO. . Amend House Bill 46, AS AMENDED, by 3 replacing everything after the enacting clause with the 4 following: 5 "Section 1. Short title. This Act may be cited as the 6 Illinois Renewable Fuels Development Program Act. 7 Section 5. Findings and State policy. The General 8 Assembly recognizes that agriculture is a vital sector of the 9 Illinois economy and that an important growth industry for 10 the Illinois agricultural sector is renewable fuels 11 production. Renewable fuels produced from Illinois 12 agricultural products hold great potential for growing the 13 State's economy, reducing our dependence on foreign oil 14 supplies, and improving the environment by reducing harmful 15 emissions from vehicles. Illinois is the nation's leading 16 producer of ethanol, a clean, renewable fuel with significant 17 environmental benefits. The General Assembly finds that 18 reliable supplies of renewable fuels will be integral to the 19 long term energy security of the United States. The General 20 Assembly declares that it is the public policy of the State 21 of Illinois to promote and encourage the production and use 22 of renewable fuels as a means not only to improve air quality -2- LRB093 02098 SJM 16676 a 1 in the State and the nation, but also to grow the 2 agricultural sector of the Illinois economy. To achieve these 3 public policy objectives, the General Assembly hereby 4 authorizes the creation and implementation of the Illinois 5 Renewable Fuels Development Program within the Department. 6 Section 10. Definitions. As used in this Act: 7 "Biodiesel" means a renewable diesel fuel derived from 8 biomass that is intended for use in diesel engines. 9 "Biodiesel blend" means a blend of biodiesel with 10 petroleum-based diesel fuel in which the resultant product 11 contains no less than 1% and no more than 99% biodiesel. 12 "Biomass" means non-fossil organic materials that have an 13 intrinsic chemical energy content. "Biomass" includes, but is 14 not limited to, soybean oil, other vegetable oils, and 15 ethanol. 16 "Department" means the Department of Commerce and 17 Community Affairs. 18 "Diesel fuel" means any product intended for use or 19 offered for sale as a fuel for engines in which the fuel is 20 injected into the combustion chamber and ignited by pressure 21 without electric spark. 22 "Director" means the Director of Commerce and Community 23 Affairs. 24 "Ethanol" means a product produced from agricultural 25 commodities or by-products used as a fuel or to be blended 26 with other fuels for use in motor vehicles. 27 "Fuel" means fuel as defined in Section 1.19 of the Motor 28 Fuel Tax Law. 29 "Gasohol" means motor fuel that is no more than 90% 30 gasoline and at least 10% denatured ethanol that contains no 31 more than 1.25% water by weight. 32 "Gasoline" means all products commonly or commercially 33 known or sold as gasoline (including casing head and -3- LRB093 02098 SJM 16676 a 1 absorption or natural gasoline). 2 "Illinois agricultural product" means any agricultural 3 commodity grown in Illinois that is used by a production 4 facility to produce renewable fuel in Illinois, including, 5 but not limited to, corn, barley, and soy beans. 6 "Labor Organization" means any organization: 7 (1) in which construction trades, crafts, or labor 8 employees, or all or any of these participate; and 9 (2) that represents construction trades, crafts, or 10 labor employees, or any or all of these; and 11 (3) that exists for the purpose, in whole or in 12 part, of negotiating with the employers of construction 13 trades, crafts, or labor employees, or any or all of 14 these, terms and conditions of employment, including but 15 not limited to: wages, hours of work, overtime 16 provisions, fringe benefits, and the settlement of 17 grievances; and 18 (4) that participates in apprenticeship and 19 training approved and registered with the United States 20 Department of Labor's Bureau of Apprenticeship and 21 Training, in the State of Illinois. 22 "Majority blended ethanol fuel" means motor fuel that 23 contains no less than 70% and no more than 90% denatured 24 ethanol and no less than 10% and no more than 30% gasoline. 25 "Motor vehicles" means motor vehicles as defined in the 26 Illinois Vehicle Code and watercraft propelled by an internal 27 combustion engine. 28 "Owner" means any individual, sole proprietorship, 29 limited partnership, co-partnership, joint venture, 30 corporation, cooperative, or other legal entity that operates 31 or will operate a plant located within the State of Illinois. 32 "Plant" means a production facility that produces a 33 renewable fuel. "Plant" includes land, any building or other 34 improvement on or to land, and any personal properties deemed -4- LRB093 02098 SJM 16676 a 1 necessary or suitable for use, whether or not now in 2 existence, in the processing of fuel from agricultural 3 commodities or by-products. 4 "Renewable fuel" means ethanol, gasohol, majority blended 5 ethanol fuel, biodiesel blend fuel, and biodiesel. 6 Section 15. Illinois Renewable Fuels Development Program. 7 (a) The Department must develop and administer the 8 Illinois Renewable Fuels Development Program to assist in the 9 construction, modification, alteration, or retrofitting of 10 renewable fuel plants in Illinois. The recipient of a grant 11 under this Section must: 12 (1) be constructing, modifying, altering, or 13 retrofitting a plant in the State of Illinois; 14 (2) be constructing, modifying, altering, or 15 retrofitting a plant that has annual production capacity 16 of no less than 30,000,000 gallons of renewable fuel per 17 year; and 18 (3) enter into a project labor agreement as 19 prescribed by Section 25 of this Act. 20 (b) Grant applications must be made on forms provided by 21 and in accordance with procedures established by the 22 Department. 23 (c) The Department must give preference to applicants 24 that use Illinois agricultural products in the production of 25 renewable fuel at the plant for which the grant is being 26 requested. 27 Section 20. Grants. Subject to appropriation from the 28 General Revenue Fund, the Director is authorized to award 29 grants to eligible applicants. The annual aggregate amount of 30 grants awarded shall not exceed $15,000,000. 31 Section 25. Project labor agreements. -5- LRB093 02098 SJM 16676 a 1 (a) The project labor agreement must include the 2 following: 3 (1) provisions establishing the minimum hourly wage 4 for each class of labor organization employee; 5 (2) provisions establishing the benefits and other 6 compensation for each class of labor organization 7 employee; and 8 (3) provisions establishing that no strike or 9 disputes will be engaged in by the labor organization 10 employees. 11 The owner of the plant and the labor organizations shall have 12 the authority to include other terms and conditions as they 13 deem necessary. 14 (b) The project labor agreement shall be filed with the 15 Director in accordance with procedures established by the 16 Department. At a minimum, the project labor agreement must 17 provide the names, addresses, and occupations of the owner of 18 the plant and the individuals representing the labor 19 organization employees participating in the project labor 20 agreement. The agreement must also specify the terms and 21 conditions required in subsection (a). 22 Section 30. Administration of the Act; rules. The 23 Department shall administer this Act and shall adopt any 24 rules necessary for that purpose. 25 Section 905. The Prevailing Wage Act is amended by 26 changing Sections 2, 3, and 4 as follows: 27 (820 ILCS 130/2) (from Ch. 48, par. 39s-2) 28 Sec. 2. This Act applies to the wages of laborers, 29 mechanics and other workers employed in any public works, as 30 hereinafter defined, by any public body and to anyone under 31 contracts for public works. -6- LRB093 02098 SJM 16676 a 1 As used in this Act, unless the context indicates 2 otherwise: 3 "Public works" means all fixed works constructedfor4public useby any public body, other than work done directly 5 by any public utility company, whether or not done under 6 public supervision or direction, or paid for wholly or in 7 part out of public funds. "Public works" as defined herein 8 includes all projects financed in whole or in part with bonds 9 issued under the Industrial Project Revenue Bond Act (Article 10 11, Division 74 of the Illinois Municipal Code), the 11 Industrial Building Revenue Bond Act, the Illinois 12 Development Finance Authority Act, the Illinois Sports 13 Facilities Authority Act, or the Build Illinois Bond Act, and 14 all projects financed in whole or in part with loans or other 15 funds made available pursuant to the Build Illinois Act. 16 "Public works" also includes all projects financed in whole 17 or in part with funds from the Department of Commerce and 18 Community Affairs under the Illinois Renewable Fuels 19 Development Program Act for which there is no project labor 20 agreement. 21 "Construction" means all work on public works involving 22 laborers, workers or mechanics. 23 "Locality" means the county where the physical work upon 24 public works is performed, except (1) that if there is not 25 available in the county a sufficient number of competent 26 skilled laborers, workers and mechanics to construct the 27 public works efficiently and properly, "locality" includes 28 any other county nearest the one in which the work or 29 construction is to be performed and from which such persons 30 may be obtained in sufficient numbers to perform the work and 31 (2) that, with respect to contracts for highway work with the 32 Department of Transportation of this State, "locality" may at 33 the discretion of the Secretary of the Department of 34 Transportation be construed to include two or more adjacent -7- LRB093 02098 SJM 16676 a 1 counties from which workers may be accessible for work on 2 such construction. 3 "Public body" means the State or any officer, board or 4 commission of the State or any political subdivision or 5 department thereof, or any institution supported in whole or 6 in part by public funds,authorized by law to construct7public works or to enter into any contract for the8construction of public works,and includes every county, 9 city, town, village, township, school district, irrigation, 10 utility, reclamation improvement or other district and every 11 other political subdivision, district or municipality of the 12 state whether such political subdivision, municipality or 13 district operates under a special charter or not. 14 The terms "general prevailing rate of hourly wages", 15 "general prevailing rate of wages" or "prevailing rate of 16 wages" when used in this Act mean the hourly cash wages plus 17 fringe benefits for training and apprenticeship programs 18 approved by the U.S. Department of Labor, Bureau of 19 Apprenticeship and Training, health and welfare, insurance, 20 vacations and pensions paid generally, in the locality in 21 which the work is being performed, to employees engaged in 22 work of a similar character on public works. 23 (Source: P.A. 91-105, eff. 1-1-00; 91-935, eff. 6-1-01; 24 92-16, eff. 6-28-01.) 25 (820 ILCS 130/3) (from Ch. 48, par. 39s-3) 26 Sec. 3. Not less than the general prevailing rate of 27 hourly wages for work of a similar character on public works 28 in the locality in which the work is performed, and not less 29 than the general prevailing rate of hourly wages for legal 30 holiday and overtime work, shall be paid to all laborers, 31 workers and mechanics employed by or on behalf of any public 32 body engaged in the construction of public works. Only such 33 laborers, workers and mechanics as are directly employed by -8- LRB093 02098 SJM 16676 a 1 contractors or subcontractors in actual construction work on 2 the site of the building or construction job, and laborers, 3 workers and mechanics engaged in the transportation of 4 materials and equipment to or from the site, but not 5 including the transportation by the sellers and suppliers or 6 the manufacture or processing of materials or equipment, in 7 the execution of any contract or contracts for public works 8 with any public body shall be deemed to be employed upon 9 public works. The wage for a tradesman performing maintenance 10 is equivalent to that of a tradesman engaged in construction. 11 (Source: P.A. 83-443.) 12 (820 ILCS 130/4) (from Ch. 48, par. 39s-4) 13 Sec. 4. The public body awarding any contract for public 14 work or otherwise undertaking any public works, shall 15 ascertain the general prevailing rate of hourly wages in the 16 locality in which the work is to be performed, for each craft 17 or type of worker or mechanic needed to execute the contract, 18 and where the public body performs the work without letting a 19 contract therefor, shall ascertain the prevailing rate of 20 wages on a per hour basis in the locality, and such public 21 body shall specify in the resolution or ordinance and in the 22 call for bids for the contract, that the general prevailing 23 rate of wages in the locality for each craft or type of 24 worker or mechanic needed to execute the contract or perform 25 such work, also the general prevailing rate for legal holiday 26 and overtime work, as ascertained by the public body or by 27 the Department of Labor shall be paid for each craft or type 28 of worker needed to execute the contract or to perform such 29 work, and it shall be mandatory upon the contractor to whom 30 the contract is awarded and upon any subcontractor under him, 31 and where the public body performs the work, upon the public 32 body, to pay not less than the specified rates to all 33 laborers, workers and mechanics employed by them in the -9- LRB093 02098 SJM 16676 a 1 execution of the contract or such work; provided, however, 2 that if the public body desires that the Department of Labor 3 ascertain the prevailing rate of wages, it shall notify the 4 Department of Labor to ascertain the general prevailing rate 5 of hourly wages for work under contract, or for work 6 performed by a public body without letting a contract as 7 required in the locality in which the work is to be 8 performed, for each craft or type of worker or mechanic 9 needed to execute the contract or project or work to be 10 performed. Upon such notification the Department of Labor 11 shall ascertain such general prevailing rate of wages, and 12 certify the prevailing wage to such public body. The public 13 body awarding the contract shall cause to be inserted in the 14 contract a stipulation to the effect that not less than the 15 prevailing rate of wages as found by the public body or 16 Department of Labor or determined by the court on review 17 shall be paid to all laborers, workers and mechanics 18 performing work under the contract. It shall also require in 19 all such contractor's bonds that the contractor include such 20 provision as will guarantee the faithful performance of such 21 prevailing wage clause as provided by contract. All bid 22 specifications shall list the specified rates to all 23 laborers, workers and mechanics in the locality for each 24 craft or type of worker or mechanic needed to execute the 25 contract. If the Department of Labor revises the prevailing 26 rate of hourly wages to be paid by the public body, the 27 revised rate shall apply to such contract, and the public 28 body shall be responsible to notify the contractor and each 29 subcontractor, of the revised rate. Two or more investigatory 30 hearings under this Section on the issue of establishing a 31 new prevailing wage classification for a particular craft or 32 type of worker shall be consolidated in a single hearing 33 before the Department. Such consolidation shall occur 34 whether each separate investigatory hearing is conducted by a -10- LRB093 02098 SJM 16676 a 1 public body or the Department. The party requesting a 2 consolidated investigatory hearing shall have the burden of 3 establishing that there is no existing prevailing wage 4 classification for the particular craft or type of worker in 5 any of the localities under consideration. 6 It shall be mandatory upon the contractor or construction 7 manager to whom a contract for public works is awarded to 8 post, at a location on the project site of the public works 9 that is easily accessible to the workers engaged on the 10 project, the prevailing wage rates for each craft or type of 11 worker or mechanic needed to execute the contract or project 12 or work to be performed. A failure to post a prevailing wage 13 rate as required by this Section is a violation of this Act. 14 (Source: P.A. 92-783, eff. 8-6-02.) 15 Section 99. Effective date. This Act takes effect upon 16 becoming law.".