SB2220sam001 95TH GENERAL ASSEMBLY

Sen. Don Harmon

Filed: 3/10/2008

09500SB2220sam001 LRB095 17824 HLH 47426 a

AMENDMENT TO SENATE BILL 2220

AMENDMENT NO. ______. Amend Senate Bill 2220 by replacing everything after the enacting clause with the following:

"ARTICLE 5.

Section 5-1. Short title. This Article may be cited as the Global Warming Response Act. References in this Article to "this Act" mean this Article.

Section 5-5. Findings.

(a) The world's scientists have formed a near-unanimous chorus, warning that pollution primarily caused by burning fossil fuels are causing the temperature of the Earth to rise.

(b) Warning signs of global warming are being discovered and reported throughout the world. Melting glaciers, severe storms, prolonged drought, reduced mountain snow-pack, and dying coral reefs are among the signs that global warming is underway.

(c) Decisive action at the international, national, State, and local levels to address the threat of global warming is necessary to meet the challenge posed by global warming.

(d) Illinois business and industry will benefit from proactive policies that will ensure that we remain competitive as the world's economy shifts from high-carbon to low-carbon energy technologies.

(e) By exercising a global leadership role, Illinois will also position its economy, technology centers, financial institutions, and businesses to benefit from national and international efforts to reduce emissions of greenhouse gases.

(f) Many of the clean energy policies that reduce global warming pollution also provide economic and quality of life benefits such as reduced energy bills, green space preservation, air quality improvements, reduced traffic congestion, improved transportation choices, and economic development and job creation through energy conservation and new energy technologies.

(g) According to an analysis performed by ICF International, reducing global warming pollution in Illinois to 1990 levels by 2020, and using clean energy technologies to meet these caps, will cause job growth, growth in the gross state product, and will save consumers money compared with a do-nothing scenario.

(h) In the absence of a federal policy, states and cities are establishing their own plans to reduce carbon dioxide and other greenhouse gas emissions. For example, 15 states have economy-wide global warming pollution reduction goals, 13 states have regulated global warming pollution from automobile tailpipes, and 10 states have set limits on global warming pollution from power plants.

(i) The mayors of more than 750 U.S. cities, including 27 Illinois cities representing over 30% of Illinois' population, have signed the U.S. Mayors Climate Protection Agreement, pledging to reduce greenhouse emissions in their own cities to 7% below 1990 levels by 2012. The State encourages these local initiatives and should seek to encourage their success with its policies and programs.

(j) It is the intent of the General Assembly that the Illinois Environmental Protection Agency, in consultation with State agencies and stakeholders, including the environmental justice community, industry sectors, business groups, academic institutions, environmental organizations, and others, implement the global warming pollution reduction targets in this Act in the manner that minimizes costs and maximizes benefits for Illinois's economy, improves and modernizes Illinois's energy infrastructure and maintains electric system reliability, maximizes additional environmental and economic co-benefits for Illinois, and complements the State's efforts to improve air quality.

(k) Twelve Midwest states, including Illinois, have entered into an agreement to promote global warming solutions in the Midwest, and the Governors of Illinois, Iowa, Michigan, Minnesota, and Wisconsin have entered into an agreement to jointly develop greenhouse gas emissions reduction targets in these states and to establish market-based mechanisms that allow for the greatest efficiency in reaching those targets. The General Assembly supports this collaboration and Illinois's participation in it.

(l) The consequences of climate change that are projected, and probably already beginning, to occur in Illinois pose grave risks to Illinois' economy, public health, and environment. Potential negative impacts include disruptions to Illinois agriculture, greater frequency of extreme weather events, water supply shortages, spread of tropical diseases not historically present in Illinois, and increased ozone levels. It is the responsibility of the State to act to take action to prevent or lessen these impacts.

Section 5-10. Definitions. As used in this Act:

"Allowance" means an authorization to emit, during a specified year, up to one ton of carbon dioxide equivalent.

"Alternative compliance mechanism" means an action undertaken by a greenhouse gas emission source that achieves the equivalent reduction of greenhouse gas emissions over the same time period as a direct emission reduction and that is approved by the Illinois Environmental Protection Agency.

"Board" means the Illinois Pollution Control Board.

"Carbon dioxide equivalent" means the amount of carbon dioxide by weight that would produce the same global warming impact as a given weight of another greenhouse gas, based on the best available science, including that from the Intergovernmental Panel on Climate Change.

"Cost-effective" or "cost-effectiveness" means the cost per unit of reduced emissions of greenhouse gases adjusted for its global warming potential.

"Direct emission reduction" means a greenhouse gas emission reduction action made by a greenhouse gas emission source at that source.

"Emissions reduction measure" means programs, measures, standards, and alternative compliance mechanisms authorized pursuant to this Act, applicable to sources or categories of sources, that are designed to reduce emissions of greenhouse gases.

"Greenhouse gas" or "greenhouse gases" includes all of the following gases: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.

"Greenhouse gas emission limit" means an authorization, during a specified year, to emit up to a level of greenhouse gases specified by the Illinois Environmental Protection Agency, expressed in tons of carbon dioxide equivalents.

"Greenhouse gas emission source" or "source" means any source or category of sources of greenhouse gas emissions whose emissions are at a level of significance as determined by the Illinois Environmental Protection Agency that its participation in this program will enable the State to effectively reduce greenhouse gas emissions and monitor compliance with the statewide greenhouse gas emissions limit.

"Leakage" means a reduction in emissions of greenhouse gases within the State that is offset by an increase in emissions of greenhouse gases outside the State.

"Market-based compliance mechanism" means either of the following:

(1) A system of market-based, declining, annual aggregate emissions limitations for sources or categories of sources that emit greenhouse gases.

(2) Greenhouse gas emissions exchanges, banking, credits, and other transactions, governed by rules and protocols established by the Illinois Environmental Protection Agency, that result in the same greenhouse gas emission reduction over the same time period as direct compliance with a greenhouse gas emission limit or emission reduction measure adopted by the State agency pursuant to this division.

"State agency" means the Illinois Environmental Protection Agency.

"Statewide greenhouse gas emissions" means the total annual emissions of greenhouse gases in the State. Statewide emissions shall be expressed in tons of carbon dioxide equivalents.

"Statewide greenhouse gas emissions limit" means the maximum allowable level of statewide greenhouse gas emissions in 2020, as determined by the State agency.

Section 5-15. Monitoring and regulating sources of emissions of greenhouse gases. The Illinois Environmental Protection Agency is the State agency charged with monitoring and regulating sources of emissions of greenhouse gases that cause global warming in order to reduce emissions of greenhouse gases.

Section 5-20. Mandatory greenhouse gas emissions reporting.

(a) On or before June 1, 2009, the State agency shall propose and the Board shall adopt rules to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program.

(b) The rules shall do all of the following:

(1) Require the monitoring and annual reporting of greenhouse gas emissions from greenhouse gas emission sources beginning with the sources or categories of sources that contribute the most to statewide emissions.

(2) Account for greenhouse gas emissions from all electricity consumed in the State, including transmission and distribution line losses from electricity generated within the State or imported from outside the State.

(3) Ensure the rigorous and consistent accounting of emissions and provide reporting tools and formats to ensure collection of necessary data.

(4) Ensure that greenhouse gas emission sources maintain comprehensive records of all reported greenhouse gas emissions.

(c) The State agency shall do both of the following:

(1) Periodically review and update its emission reporting requirements, as necessary.

(2) Review existing and proposed international, federal, and State greenhouse gas emission reporting programs, make reasonable efforts to promote consistency among the programs established pursuant to this Act and other programs, and streamline reporting requirements on greenhouse gas emission sources.

Section 5-25. Statewide greenhouse gas emissions limit.

(a) By January 1, 2009, the State agency shall, after one or more public workshops, with public notice and an opportunity to comment, determine what the statewide greenhouse gas emissions level was in 1990 and propose to the Board a statewide greenhouse gas emission limit that is equivalent to that level, to be achieved by 2020. The Board shall consider and either revise or adopt the proposed level by June 1, 2009. In order to ensure the most accurate determination feasible, the State agency shall evaluate the best available scientific, technological, and economic information on greenhouse gas emissions to determine the 1990 level of greenhouse gas emissions.

(b) The statewide greenhouse gas emissions limit shall remain in effect unless otherwise amended or repealed.

(c) It is the intent of the General Assembly that the statewide greenhouse gas emissions limit continue in existence and be used to maintain and continue reductions in emissions of greenhouse gases beyond 2020.

(d) The State agency shall make recommendations to the Governor and the Legislature on how to continue reductions of greenhouse gas emissions beyond 2020.

Section 5-30. Greenhouse gas emissions reductions.

(a) The State agency shall propose and the Board shall adopt rules in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions from sources or categories of sources, subject to the criteria and schedules set forth in this Section.

(b) Early action reduction measures.

(1) On or before December 30, 2008, the State agency shall publish and make available to the public a list of discrete early action greenhouse gas emission reduction measures that can be implemented prior to the measures and limits adopted pursuant to subsection (d) of this Section.

(2) On or before June 1, 2009, the State agency shall propose and the Board shall adopt rules to implement the measures identified on the list published pursuant to subsection (b)(1) of this Section.

(3) The rules adopted pursuant to this Section shall achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from those sources or categories of sources, in furtherance of achieving the statewide greenhouse gas emissions limit.

(4) The rules adopted pursuant to this Section shall be enforceable no later than January 1, 2011.

(c) On or before January 1, 2010, the State agency shall prepare and approve a plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases by 2020 under this Act. The State agency shall consult with all relevant State agencies with jurisdiction over sources of greenhouse gases on all elements of its plan that pertain to energy related matters, including, but not limited to, electrical generation, load based-standards or requirements, the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the State agency are complementary and non-duplicative and can be implemented in an efficient and cost-effective manner.

The plan shall identify and make recommendations on direct emission reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and non-monetary incentives for sources and categories of sources that the State agency finds are necessary or desirable to facilitate the achievement of the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.

In making the determinations required by this subsection (c), the State agency shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations.

The State agency shall evaluate the total potential costs and total potential economic and non-economic benefits of the plan for reducing greenhouse gases to Illinois's economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.

In developing its plan, the State agency shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions and the potential for adverse effects on small businesses and shall recommend a de minimis threshold of greenhouse gas emissions below which emission reduction requirements will not apply.

In developing its plan, the State agency shall identify opportunities for emission reductions measures from all verifiable and enforceable voluntary actions, including, but not limited to, carbon sequestration projects and best management practices.

The State agency shall conduct a series of public workshops to give interested parties an opportunity to comment on the plan.

The State agency shall update its plan for achieving the maximum technologically feasible and cost-effective reductions of greenhouse gas emissions at least once every 5 years.

(d) On or before January 1, 2012, the State agency shall propose and the Board shall adopt source specific greenhouse gas emission limits and emission reduction measures by rule to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit, to become operative beginning on January 1, 2013.

In developing rules pursuant to this Section and Section 5-35 of this Act to the extent feasible and in furtherance of achieving the statewide greenhouse gas emission limit, the State agency shall do all of the following:

(1) Design the rules, including distribution of emissions allowances where appropriate, in a manner that is equitable, seeks to minimize costs and maximize the total benefits to Illinois, and encourages early action to reduce greenhouse gas emissions.

(2) Ensure that activities undertaken to comply with the rules do not disproportionately impact low-income communities.

(3) Ensure that entities that have voluntarily reduced their greenhouse gas emissions prior to the implementation of this Section receive appropriate credit for early voluntary reductions.

(4) Ensure that activities undertaken pursuant to the rules complement and do not interfere with efforts to achieve and maintain federal and State ambient air quality standards and to reduce toxic air contaminant emissions.

(5) Consider cost-effectiveness of these rules.

(6) Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy, environment, and public health.

(7) Minimize the administrative burden of implementing and complying with these rules.

(8) Minimize leakage.

(9) Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases.

In furtherance of achieving the statewide greenhouse gas emissions limit, by January 1, 2012 the State agency may propose and the Board may adopt a rule that establishes a system of market-based, declining, annual aggregate emission limits for sources or categories of sources that emit greenhouse gas emissions, applicable from January 1, 2013 to December 31, 2020.

Any rule adopted by the board pursuant to this Act shall ensure all of the following:

(1) The greenhouse gas emission reductions achieved are real, permanent, quantifiable, verifiable, and enforceable by the State agency.

(2) For rules pursuant to Section 5-35 of this Act, the reduction is in addition to any greenhouse gas emission reduction otherwise required by law or rule and any other greenhouse gas emission reduction that otherwise would occur.

(3) If applicable, the greenhouse gas emission reduction occurs over the same time period and is equivalent in amount to any direct emission reduction required pursuant to this Act.

The State agency shall rely upon the best available economic and scientific information and its assessment of existing and projected technological capabilities when proposing the rules required by this Section.

The State agency shall consult with the Illinois Commerce Commission in the development of the rules as they affect electricity and natural gas providers in order to minimize duplicative or inconsistent regulatory requirements.

After January 1, 2012, the State agency may revise rules adopted pursuant to this Section and adopt additional rules to further the provisions of this Act.

Section 5-35. Market-based compliance mechanisms.

(a) The State agency may include in the rules adopted pursuant to Section 5-30 of this Act the use of market-based compliance mechanisms to comply with the rules.

(b) Prior to the inclusion of any market-based compliance mechanism in the rules, to the extent feasible and in furtherance of achieving the statewide goal, the Board shall do all of the following:

(1) Consider the potential for direct, indirect, and cumulative emission impacts from these mechanisms, including localized impacts in communities that are already adversely impacted by air pollution.

(2) Design any market-based compliance mechanism to prevent any increase in the emissions of toxic air contaminants or criteria air pollutants.

(c) The State agency shall adopt rules governing how market-based compliance mechanisms may be used by regulated entities subject to greenhouse gas emission limits and mandatory emission reporting requirements to achieve compliance with their greenhouse gas emissions limits.

(d) Any allowance created as part of a market-based compliance mechanism under this Act shall be distributed to a greenhouse gas emission source through an auction.

(e) There is hereby created in the State treasury a special fund known as the Global Warming Response Fund. The State Treasurer shall deposit any revenue generated by an auction into the Fund. All of the revenue deposited into the Fund shall be used to support programs and projects that contribute to the emissions reduction goals of this Act, including the development of clean energy, energy efficiency improvements, and carbon sequestration, and to address transition costs including: job training, transition programs to help industries adapt to clean technology and production, and assistance to low income utility consumers.

(1) The State Agency (or DCEO) shall use the revenue deposited in the fund to:

(A) provide grants and other forms of financial assistance to commercial, institutional, and industrial entities to support end-use energy efficiency projects and new, efficient electric generation facilities that contribute to the emissions reduction goals of this Act, and that are state of the art as determined by the Department, including but not limited to energy efficiency and renewable energy applications, to advance the next generation of biofuels and fuel infrastructure, accelerate the commercialization of plug-in hybrids, promote development of commercial-scale renewable energy, and invest in research and development of new, low-carbon energy technology;

(B) invest in a skilled clean technologies workforce, including investment in job training and transition programs to help workers and industries adapt to clean technology development and production;

(C) support programs that are designed to reduce electricity demand or costs to electricity customers in the low-income and moderate-income residential sector with a focus on urban and rural areas, including efforts to address impacts on ratepayers attributable to the implementation of this Act;

(D) promote programs designed to promote local government efforts to plan, develop, and implement measures to reduce greenhouse gas emissions, including but not limited to technical assistance to local governments, and the awarding of grants and other forms of assistance to local governments to conduct and implement energy efficiency, renewable energy, and distributed energy programs and land use planning where the grant or assistance results in a measurable reduction of the emission of greenhouse gases or a measurable reduction in energy demand; and

(E) support programs that enhance the stewardship and restoration of the State's forests and wetlands that provide quantifiable progress towards the emissions reduction goals of this Act.

Section 5-40. Enforcement. The State agency shall monitor compliance with and enforce any rule, order, emission limitation, emissions reduction measure, or market-based compliance mechanism adopted by the State agency pursuant to this Act.

ARTICLE 10.

Section 10-1. Short title. This Article may be cited as the Illinois Energy Efficient Furnace Act. References in this Article to "this Act" mean this Article.

Section 10-5. Findings.

(a) Home heating accounts for nearly 50% of the energy used in our homes.

(b) In the Midwest, volatile natural gas prices continue to make families vulnerable to unpredictable heating costs.

(c) The Department of Energy's federal standard for furnaces is appropriate for Southern states, but is inadequate for Northern states like Illinois.

(d) An efficient furnace can save a consumer in Illinois $150 to $200 per year in natural gas costs.

(e) A statewide energy efficiency standard for furnaces will save Illinois citizens a significant sum of money every year.

(f) Saving natural gas keeps money in the State and improves the State's economy.

(g) Saving energy through energy efficiency will also reduce harmful pollution that causes global warming and respiratory disease.

Section 10-10. Definitions. For purposes of this Act:

"Compensation" means money or any other valuable thing, regardless of form, received or to be received by a person for services rendered.

"Department" means the Department of Commerce and Economic Opportunity.

"Electricity ratio" is the ratio of furnace electricity use to total furnace energy use. Electricity ratio = (3.412*EAE)/(1000*EF + 3.412*EAE) where EAE (average annual auxiliary electrical consumption) and EF (average annual fuel energy consumption) are defined in Appendix N to subpart B of part 430 of title 10 of the Code of Federal Regulations and EF is expressed in millions of BTUs per year.

"Residential furnace" means a self-contained space heater designed to supply heated air through ducts longer than 10 inches and that uses only single-phase electric current or DC current in conjunction with natural gas, propane, or home heating oil, and that:

(1) is designed to be the principle heating source for the living space of one or more residences;

(2) is not contained within the same cabinet as a central air conditioner whose rated cooling capacity is above 65,000 BTU per hour; and

(3) has a heat input rate of less than 225,000 BTU per hour.

Section 10-15. Minimum furnace efficiency standard.

(a) Scope.

(1) The provisions of this Section apply to residential furnaces sold, offered for sale, or installed in the State.

(2) The provisions of this Act do not apply to:

(i) new products manufactured in the State and sold outside the State;

(ii) new products manufactured outside the State that are sold at wholesale inside the State for final retail sale and installation outside the State;

(iii) products installed in mobile manufactured homes at the time of construction; or

(iv) products designed expressly for installation and use in recreational vehicles.

(b) Efficiency standards.

(1) No later than one year after the effective date of this Act, the Department shall promulgate rules establishing minimum efficiency standards for residential furnaces.

(2) The rules shall provide for the following minimum efficiency standards:

(A) Residential furnaces that use natural gas or propane shall have a minimum Annual Fuel Utilization Efficiency (AFUE) of 90% and a maximum electricity ratio of 2%. AFUE shall be measured in accordance with the federal test method for measuring the energy consumption of furnaces and boilers contained in Appendix N to subpart B of part 430, title 10, Code of Federal Regulations.

(B) The Department may adopt rules to exempt compliance with the foregoing residential furnace AFUE standards at any building, site, or location where complying with the standards would conflict with any local zoning ordinance, building or plumbing code, or other rule regarding installation and venting of residential furnaces or residential boilers.

(c) Implementation.

(1) No later than 6 months after the effective date of this Act, the Department, in consultation with the Attorney General, shall determine if State implementation of residential furnace standards is preempted by federal law. The Department shall make separate determinations with respect to minimum AFUE and maximum electricity ratio standards. If the Department determines that a waiver from federal preemption is not needed, then on January 1, 2009, or on the date that is one year after the effective date of this Act, whichever is later, no new residential furnace may be sold or offered for sale in the State unless the efficiency of the new product meets or exceeds the applicable non-preempted efficiency standards set forth in the rules adopted pursuant to subsection (b) of this Section.

If the Department determines that a waiver from federal preemption is required, then the Department shall apply for a waiver within one year of after that determination. Upon approval of the federal waiver application, the applicable State standards shall go into effect at the earliest date permitted by federal law.

(2) One year after the effective date of this Section, as determined in item (1) of this subsection, no residential furnace may be installed for compensation in the State unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the rules adopted pursuant to subsection (b) of this Section.

(d) New and revised standards. The Department may adopt rules, in accordance with the Illinois Administrative Procedure Act, to establish increased efficiency standards for residential furnaces. In considering new or amended standards, the Department, in consultation with the other State agencies, shall set efficiency standards upon a determination that increased efficiency standards would serve to promote energy conservation in the State and would be cost-effective for consumers who purchase and use the new products, provided that no new or increased efficiency standards shall become effective within one year following the adoption of any amended rules establishing increased efficiency standards. The Department may apply for a waiver of federal preemption in accordance with federal procedures for State efficiency standards for any product regulated by the federal government.

(e) Testing, certification, labeling and enforcement.

(1) The manufacturers of residential furnaces shall test products in accordance with the test procedures adopted pursuant to this Act or those specified in the State Building Code. The Department, in consultation with other State agencies, shall adopt test procedures for determining the energy efficiency of residential furnaces if the test procedures provided for in this Act are inappropriate. The Department shall adopt U.S. Department of Energy approved test methods, or in the absence of U.S. Department of Energy approved test methods, other appropriate nationally recognized test methods. The Department may adopt updated test methods when new versions of test procedures become available.

(2) Manufacturers of residential furnaces shall certify to the Department that residential furnaces are in compliance with the provisions of this Act. Certifications shall be based on test results. The Department shall promulgate rules governing the certification of residential furnaces and shall coordinate with the certification programs of other states and federal agencies with similar standards.

(3) Manufacturers of residential furnaces shall identify each product offered for sale or installation in the State as in compliance with the provisions of this Act by means of a mark, label, or tag on the product and packaging at the time of sale or installation. The Department shall promulgate rules governing the identification of residential furnaces and packaging, which shall be coordinated to the greatest practical extent with the labeling programs of other states and federal agencies with equivalent efficiency standards. The Department shall allow the use of existing marks, labels, or tags that indicate compliance with the efficiency requirements of this Act.

(4) The Department may test residential furnaces. If tested furnaces are found not to be in compliance with established minimum efficiency standards the Department shall:

(A) charge the manufacturer of the furnace for the cost of product purchase and testing; and

(B) make information available to the public on furnaces found in violation with the standards.

(5) With prior notice and at reasonable and convenient hours, the Department may cause periodic inspections to be made of distributors or retailers of residential furnaces in order to determine compliance with the provisions of this Act. The Department shall also coordinate with building contractors regarding inspections prior to occupancy of newly constructed buildings containing new products that are also covered by the applicable building code.

(6) The Department shall investigate complaints received concerning violations of this Act and shall report the results of investigations to the Attorney General. The Attorney General may institute proceedings to enforce the provisions of this Act. Any manufacturer, distributor, or retailer, or any person who installs a product covered by this Act for compensation, who violates any provision of this Act shall be issued a warning by the Department for any first violation. Repeat violations shall be subject to a civil penalty of not more than $250 imposed by the Department. Each violation shall constitute a separate offense, and each day that a violation continues shall constitute a separate offense. Penalties assessed under this paragraph are in addition to costs assessed under this Section.

(7) The Department may adopt rules as necessary to insure the proper implementation and enforcement of the provisions of this Act.

(f) Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

ARTICLE 15.

Section 15-1. Short title. This Act may be cited as the Illinois Clean Car Act. References in this Article to "this Act" mean this Article.

Section 15-5. Definitions. For purposes of this Act:

(a) "Agency" means the Environmental Protection Agency.

(b) "Board" means the Pollution Control Board.

(c) "Transfer" includes the terms acquire, purchase, sell, or lease.

Section 15-10. Adoption of a Program.

(a) By January 1, 2009 the Agency shall propose and the Board shall establish by rule a Clean Car Program that is (i) authorized by Section 177 of the federal Clean Air Act, and (ii) applicable to vehicles of the 2011 model year and every subsequent model year.

(b) As part of the Program, the Agency shall establish new motor vehicle emission standards and compliance requirements for vehicles of the 2011 model year and every subsequent model year as authorized by Section 177 of the federal Clean Air Act.

(c) As part of the compliance requirements established under this Act, the Agency may adopt by rule motor vehicle emission inspection, recall, and warranty requirements.

Section 15-15. Minimization of administrative impact.

(a) To minimize the administrative impact of the Program and to minimize the impact of motor vehicle emissions generated in other states on the air quality of this State, the Agency may:

(1) adopt by reference the rules, regulations, procedures, and certification data of any of the states that have adopted clean car standards authorized by Section 177 of the federal Clean Air Act; and

(2) work in cooperation with any of the states that have clean car standards, authorized by Section 177 of the federal Clean Air Act, to administer certification, in-use compliance, inspection, recall, and warranty requirements for the Program.

Section 15-20. Title; registration.

(a) Except as otherwise provided in this Section, the Secretary of State shall not register or issue a title for a new motor vehicle that is subject to the provisions of this Act if the motor vehicle is not in compliance with the provisions of this Act or any rule adopted under this Act.

(b) Notwithstanding subsection (a) of this Section, the Secretary of State may, in consultation with the Agency, adopt rules to exempt motor vehicles from the Program. These exemptions shall be limited to:

(1) motor vehicles sold for registration out of the State;

(2) motor vehicles sold from a licensed dealer to another licensed dealer; or

(3) any motor vehicles that would be exempted from the Low Emission Vehicle Program established under California law.

Any motor vehicle exempted under this subsection (b) is exempt from the requirements of the Program, and the Secretary of State shall note that exemption on the title of the motor vehicle.

(c) The Secretary of State, in consultation with the Agency, shall adopt rules to prohibit the transfer of new motor vehicles or new motor vehicle engines that are not in compliance with the provisions of this Act, if those rules are necessary to comply with Section 177 of the federal Clean Air Act.

ARTICLE 17.

Section 17-1. Short title. This Act may be cited as the Clean Home-Grown Fuels Act. References in this Article to "this Act" mean this Article.

Section 17-5. Findings.

(a) Illinois' agricultural economy would benefit greatly from expanding its growth of feedstock for the cleanest possible transportation fuels.

(b) Greenhouse gas emissions pose a threat to the health of Illinois' citizens, leading State industries, and the quality of the environment.

(c) Illinois' use of motor vehicles is a significant source of greenhouse gas emissions in the State, contributing approximately 25% of the State's annual greenhouse gas emissions.

(d) Illinois is almost entirely dependent on one source of motor vehicle fuel for use for its transportation economy, the price of which is highly volatile and, therefore, imperils our economic security, endangers our jobs, and jeopardizes our industries.

(e) The purpose of this Act is to bolster Illinois' agricultural economy by requiring the greater use of fuels with a lower carbon dioxide content than that of gasoline, thereby simultaneously reducing the State's global warming pollution.

Section 17-10. Definitions.

"Alternative fuel" means any fuel used for the generation of power in an automobile, sport utility vehicle, or truck that does not meet the definition of "motor vehicle fuel". Alternative fuel includes, but is not limited to, electricity, hydrogen, and fuel cells.

"Carbon intensity" means the measurement of lifecycle greenhouse gas emissions from motor vehicle fuels expressed in carbon dioxide equivalent per unit of energy delivered.

"Greenhouse gas" means all gases defined by the Intergovernmental Panel on Climate Change as contributing to global warming, including water vapor, carbon dioxide, nitrous oxide, methane, sulphur hexafluoride, hydrofluorocarbons, and perfluorocarbons.

"Motor vehicle fuel" means any liquid product used for the generation of power in an internal combustion engine, except for aviation gasoline, aviation jet fuels, and liquefied petroleum gas.

"Provider" means a refiner, blender, producer, or importer of motor vehicle fuel.

"Retail dealer" means any person who owns, operates, controls, or supervises an establishment at which motor vehicle fuel is offered for sale to the public.

"Wholesale dealer" means a person who sells motor vehicle fuel if the seller knows or has reasonable cause to believe that the buyer intends to resell the motor vehicle fuel in the same or an altered form to a retailer dealer, a nonretailer dealer, or another wholesaler.

Section 17-20. Creation of a sliding scale for the sale of clean fuels in Illinois.

By January 1, 2010, the Illinois Environmental Protection Agency shall, by rule:

(a) Adopt a clean fuels standard, including enforcement and credit mechanisms, that achieves the maximum technologically feasible and cost-effective greenhouse gas emissions reductions from motor vehicle fuels. The standard shall have a goal of reducing the carbon intensity of the use of motor vehicle fuels by at least 10% by the year 2020.

(b) To reduce carbon intensity by 6% by 2020, the Agency shall require, beginning in 2011, the following proportion of total motor vehicle fuel sold in the State have a carbon content at least 50% lower than that of gasoline's 2005 carbon intensity on a full lifecycle basis:

(i) 2011: 1.00%

(ii) 2012: 1.50%

(iii) 2013: 2.25%

(iv) 2014: 3.00%

(v) 2015: 4.50%

(vi) 2016: 5.75%

(vii) 2017: 7.00%

(viii) 2018: 8.50%

(ix) 2019: 10.25%

(x) 2020: 12.00%

(c) To reduce carbon intensity by the remaining 4% by 2020, the Agency shall permit fuel providers to use any other combination of motor vehicle or alternative fuels, with no interim goals.

(d) Issue best management practices, standards, incentives, or certification programs to avoid or reduce, to the maximum extent practicable, negative environmental impacts associated with implementation of the clean fuels standard and to avoid or minimize negative environmental impacts from the sourcing and production of clean fuels.

Section 17-30. Implementation.

(a) The clean fuels standard shall apply to all fuel providers in Illinois.

(b) The baseline year for the purpose of determining the percent reduction of the carbon intensity of fuels is 2005.

(c) No later than January 1, 2010, the Agency shall:

(a) define the term "full lifecycle" and shall measure the carbon intensity of fuels on the full lifecycle basis for each motor vehicle fuel; and

(b) establish a system of credits and other market-based methods by which fuel providers exceeding the performance required by the program shall receive credits that may be applied to future obligations or traded to providers that do not meet the performance required by the program.

Section 17-40. Reporting requirements.

(1) By October 1, 2011, to permit reporting by providers for calendar year 2011, the Agency shall develop and adopt, by rule, environmental reporting requirements for providers that:

(a) require providers to identify the motor vehicle fuels or alternative fuels, or both, used to comply with the clean fuels standard; and

(b) require providers to demonstrate increasing availability to the general public of motor vehicle fuels or alternative fuels, or both, that meet the clean fuels standard. The report shall require a listing of wholesale dealers and retail dealers that are dispensing motor vehicle fuels or alternative fuels, or both, that meet the clean fuels standard.

(2) Beginning June 30, 2012, and by June 30 of every year thereafter, each provider shall submit to the Agency a report indicating whether the provider has met all reporting requirements for the previous calendar year. The Agency shall make the reports available to the public, including by publishing the reports on its website.

ARTICLE 20.

Section 20-5. The Energy Efficient Commercial Building Act is amended by changing Sections 1, 5, 10, 15, 20, and 45 as follows:

(20 ILCS 3125/1)

Sec. 1. Short title. This Act may be cited as the Energy Efficient Commercial Building Act.

(Source: P.A. 93-936, eff. 8-13-04.)

(20 ILCS 3125/5)

Sec. 5. Findings.

(a) The legislature finds that an effective energy efficient commercial building code is essential to:

(1) reduce the air pollutant emissions from energy consumption that are affecting the health of residents of this State;

(2) moderate future peak electric power demand;

(3) assure the reliability of the electrical grid and an adequate supply of heating oil and natural gas; and

(4) control energy costs for residents and businesses in this State.

(b) The legislature further finds that this State has a number of different climate types, all of which require energy for both cooling and heating, and that there are many cost-effective measures that can reduce peak energy use and reduce cooling, heating, lighting, and other energy costs in commercial buildings.

(Source: P.A. 93-936, eff. 8-13-04.)

(20 ILCS 3125/10)

Sec. 10. Definitions.

"Board" means the Capital Development Board.

"Building" includes both residential buildings and commercial buildings.

"Code" means the latest published edition of the International Code Council's International Energy Conservation Code, excluding published supplements but including the adaptations to the Code that are made by the Board.

"Commercial building" means any building except a building that is a residential building, as defined in this Section.

"Department" means the Department of Commerce and Economic Opportunity.

"Municipality" means any city, village, or incorporated town.

"Residential building" means (i) a detached one-family or 2-family dwelling or (ii) any building that is 3 stories or less in height above grade that contains multiple dwelling units, in which the occupants reside on a primarily permanent basis, such as a townhouse, a row house, an apartment house, a convent, a monastery, a rectory, a fraternity or sorority house, a dormitory, and a rooming house.

(Source: P.A. 93-936, eff. 8-13-04; 94-815, eff. 5-26-06.)

(20 ILCS 3125/15)

Sec. 15. Energy Efficient Building Code. The Board, in consultation with the Department, shall adopt the Code as minimum requirements applying to the construction of, renovations to, and additions to all commercial buildings in the State. The Board may appropriately adapt the International Energy Conservation Code to apply to the particular economy, population distribution, geography, and climate of the State and construction therein, consistent with the public policy objectives of this Act.

(Source: P.A. 93-936, eff. 8-13-04.)

(20 ILCS 3125/20)

Sec. 20. Applicability.

(a) The Code shall take effect one year after it is adopted by the Board and shall apply to any new commercial building or structure in this State for which a building permit application is received by a municipality or county, except as otherwise provided by this Act. In the case of any addition, alteration, renovation, or repair to an existing commercial structure, the Code adopted under this Act applies only to the portions of that structure that are being added, altered, renovated, or repaired.

(b) The following buildings shall be exempt from the Code:

(1) Buildings otherwise exempt from the provisions of a locally adopted building code and buildings that do not contain a conditioned space.

(2) Buildings that do not use either electricity or fossil fuel for comfort conditioning. For purposes of determining whether this exemption applies, a building will be presumed to be heated by electricity, even in the absence of equipment used for electric comfort heating, whenever the building is provided with electrical service in excess of 100 amps, unless the code enforcement official determines that this electrical service is necessary for purposes other than providing electric comfort heating.

(3) Historic buildings. This exemption shall apply to those buildings that are listed on the National Register of Historic Places or the Illinois Register of Historic Places, and to those buildings that have been designated as historically significant by a local governing body that is authorized to make such designations.

(4) Additions, alterations, renovations, or repairs to existing residential structures Residential buildings.

(5) Other buildings specified as exempt by the International Energy Conservation Code.

(Source: P.A. 93-936, eff. 8-13-04.)

(20 ILCS 3125/45)

Sec. 45. Home rule. Unless otherwise provided in this Section, no No unit of local government, including any home rule unit, may regulate energy efficient building standards in a manner that is less stringent than the provisions contained in this Act. Any unit of local government that has adopted the efficiency standards of the 2000 International Energy Conservation Code, including the 2001 supplement, on or before January 1, 2007, may continue to regulate energy efficient building standards under that Code.

This Section is a denial and limitation of home rule powers and functions under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State. Nothing in this Section, however, prevents a unit of local government from adopting an energy efficiency code or standards that are more stringent than the Code under this Act.

(Source: P.A. 93-936, eff. 8-13-04.)

Section 20-10. The State Finance Act is amended by adding Section 5.708 as follows:

(30 ILCS 105/5.708 new)

Sec. 5.708. The Global Warming Response Fund.

(415 ILCS 140/Act rep.)

Section 20-15. The Kyoto Protocol Act of 1998 is repealed.

ARTICLE 99.

Section 99-99. Effective date. This Act takes effect upon becoming law.".