HB2106ham001 95TH GENERAL ASSEMBLY

Rep. Michael K. Smith

Filed: 4/17/2007

09500HB2106ham001 LRB095 00796 CMK 34872 a

AMENDMENT TO HOUSE BILL 2106

AMENDMENT NO. ______. Amend House Bill 2106 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Renewable Fuels Development Program Act is amended by changing Sections 15, 20, and 25 and by adding Sections 15.1, 15.2, and 15.3 as follows:

(20 ILCS 689/15)

Sec. 15. Illinois Renewable Fuels Development Program.

(a) The Department must develop and administer the Illinois Renewable Fuels Development Program to assist in the construction, modification, alteration, or retrofitting of renewable fuel plants in Illinois. The recipient of a grant under this Section must:

(1) be constructing, modifying, altering, or retrofitting a plant in the State of Illinois;

(2) be constructing, modifying, altering, or retrofitting a plant that has annual production capacity of no less than 30,000,000 gallons of renewable fuel per year; and

(3) enter into a project labor agreement as prescribed by Section 25 of this Act.

(b) Grant applications must be made on forms provided by and in accordance with procedures established by the Department.

(c) The Department must give preference to applicants that use Illinois agricultural products in the production of renewable fuel at the plant for which the grant is being requested.

(d) 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.

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

(20 ILCS 689/15.1 new)

Sec. 15.1. Renewable Fuels Majority Blended Ethanol Infrastructure Program. The Department shall establish and administer the Renewable Fuels Majority Blended Ethanol Program to encourage the construction, installation, and marketing of majority blended ethanol, as defined in Section 3-44 of the Use Tax Act. The Renewable Fuels Majority Blended Ethanol Program shall provide financial assistance for units of local government and petroleum distribution centers to install the necessary infrastructure for the use of majority blended ethanol.

The Department shall establish the program for the purpose of providing grants to units of local government and motor fuel delivering suppliers, as defined in Section 5-5 of the Gas Use Tax Law, that operate or will be operating majority blended ethanol fueling distribution infrastructure. A unit of local government applying for a grant under this program shall receive a matching grant equaling 50% of the total cost of installation of a majority blended ethanol distribution pump, but not to exceed $40,000. Delivering suppliers shall be eligible to receive a matching grant equal to 50% the cost of installation per pump location, but not to exceed a total of $250,000 in grants annually for each delivering supplier for locations in the supplier's ownership and control. The Department shall adopt necessary rules and forms for the implementation of this Section.

(20 ILCS 689/15.2 new)

Sec. 15.2. Renewable Fuels Competitive Commercialization Program. The Department shall develop and administer the Renewable Fuels Competitive Commercialization Program to coordinate renewable fuel research and distribution of grant funds to bring the State to the forefront of renewable fuel development. The Renewable Fuels Competitive Commercialization Grant Oversight Committee is established to review the grants and make recommendations to the Director for awarding grants. The oversight committee shall be comprised of 9 members. The members shall be appointed as follows: the Director, or his or her designee; the Speaker of the House of Representatives; the President of the Senate; the Minority Leader of the House of Representatives; the Minority Leader of the Senate; and one member representing each of the following, to be appointed by the Director:

(1) a general statewide agricultural association;

(2) an association representing producers of corn;

(3) an association representing producers of soybeans; and

(4) renewable fuels production facilities.

The Department shall solicit proposals for grants that provide funds for projects, including but limited not to, adding value to bio-fuel co-products (such as Distillers Dried Grain with solubles (DDGs)), increasing vehicle mileage, and reducing the water usage in manufacturing bio-fuel to increase the competitiveness of renewable fuels produced in the State. Preference shall be given to projects in partnership with industry or for project pilot scale demonstrations that advance the State's leadership in the development of a bio-based economy.

(20 ILCS 689/15.3 new)

Sec. 15.3. Renewable Fuels Rail Infrastructure Assistance Program. The Department shall establish and administer the Renewable Fuels Rail Infrastructure Assistance Program to assist in the construction and installation of (i) railroad side track and turnouts to provide rail service to renewable fuels facilities, (ii) side track and turnouts for railroad storage and collection areas for renewable fuels and renewable fuel inputs, and (iii) side track, turnouts, and other necessary infrastructure for renewable fuel and renewable fuel co-products container shipping. Only one grant for the purpose stated under item (iii) of this Section shall be awarded each year. Grant applications shall be submitted on forms prescribed by the Department.

(20 ILCS 689/20)

Sec. 20. Grants. Subject to appropriation, the Director is authorized to award Renewable Fuels Development Program Fund grants to eligible applicants. The annual aggregate amount of grants awarded under this Section is subject to the following limits:

(1) grants awarded under the Illinois Renewable Fuels Development Program awarded shall not exceed $30,000,000 annually in fiscal years 2008, 2009, and 2010 and $15,000,000 thereafter; no more than $5,000,000 annually of these grant funds may be used for a bio-diesel plant; $20,000,000.

(2) grants awarded under the Renewable Fuels Majority Blended Ethanol Infrastructure Program shall not exceed $3,500,000 annually for fiscal years 2008 through 2014;

(3) grants awarded under the Renewable Fuels Competitive Commercialization Program shall not exceed $1,000,000 annually in fiscal years 2008, 2009, 2010, and 2011; and

(4) grants awarded under the Renewable Fuels Rail Infrastructure Assistance Program shall not exceed $5,000,000 annually for fiscal years 2008 through 2012.

(Source: P.A. 93-15, eff. 6-11-03; 93-618, eff. 12-11-03; 94-839, eff. 6-6-06.)

Section 10. The State Finance Act is amended by adding Section 5.675 and 6z-70 as follows:

(30 ILCS 105/5.675 new)

Sec. 5.675. The Renewable Fuels Development Program Fund.

(30 ILCS 105/6z-70 new)

Sec. 6z-70. Renewable Fuels Development Program Fund. The Renewable Fuels Development Program Fund is created as a special fund in the State treasury. Moneys in the Fund may be used by the Department of Commerce and Economic Opportunity, subject to appropriation, for the Illinois Renewable Fuels Development Program, the Renewable Fuels Majority Blended Ethanol Infrastructure Program, the Renewable Fuels Competitive Commercialization Program, the Renewable Fuels Rail Infrastructure Assistance Program, and other renewable energy programs as set forth in Section 20 of the Illinois Renewable Fuels Development Program Act.

Moneys received for the purposes of this Section, including, without limitation, fund transfers, gifts, grants, and awards from any public or private entity, must be deposited into the Fund. Any interest earned on moneys in the Fund must be deposited into the Fund.

The State Comptroller and State Treasurer shall automatically transfer on the last day of each month, beginning on July 30, 2007, from the General Revenue Fund to the Renewable Fuels Development Program Fund, an amount equal to one twelfth of the amount set forth below in each of the specified fiscal years:

There shall be deposited into the Renewable Fuels Development Program Fund such bond proceeds and other moneys as may, from time to time, be provided by law.

Section 99. Effective date. This Act takes effect on July 1, 2007.".