HB0651 96TH GENERAL ASSEMBLY

LRB096 04385 JDS 14434 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0651

Introduced 02/06/09, by Rep. Frank J. Mautino

SYNOPSIS AS INTRODUCED:

20 ILCS 689/15
20 ILCS 689/15.1 new
20 ILCS 689/15.2 new
20 ILCS 689/15.3 new
20 ILCS 689/15.4 new
20 ILCS 689/20
30 ILCS 105/5.719 new
30 ILCS 105/6z-80 new

Amends the Illinois Renewable Fuels Development Program Act. Provides that 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. Provides that the Department of Commerce and Economic Opportunity must establish the Renewable Fuels Majority Blended Ethanol Infrastructure Program for the purpose of providing grants to units of local government and gasoline stations or service stations offering to the public retail sales of motor fuel. Creates the Renewable Fuels Competitive Commercialization Grant Oversight Committee. Sets forth the membership of the Committee. Provides that the Department of Commerce and Economic Opportunity must establish the Renewable Fuels Rail Infrastructure Assistance Program. Provides ethanol production facilities with grants to reduce their water and energy usage and carbon emissions. Provides that grants awarded from the Renewable Fuels Development Program Fund are subject to certain limitations. Amends the State Finance Act to make conforming changes. Imposes limits on rulemaking authority. Effective immediately.

A BILL FOR

AN ACT concerning State government.

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

Section 5. The Illinois Renewable Fuels Development Program Act is amended by changing Sections 15 and 20 and by adding Sections 15.1, 15.2, 15.3, and 15.4 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 a base total annual production capacity of no less than 20,000,000 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.

Rulemaking authority to implement this Section, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.

(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 must 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 must establish the program for the purpose of providing grants to units of local government and gasoline stations or service stations offering to the public retail sales of motor fuel 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. Gasoline stations or service stations 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 gasoline station or service station retailer for locations in the gasoline station or service station retailer's ownership and control. The Department shall adopt necessary rules and forms for the implementation of this Section.

Rulemaking authority to implement this Section, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.

(20 ILCS 689/15.2 new)

Sec. 15.2. Renewable Fuels Competitive Commercialization Program. The Department must 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 as provided in this Section. The oversight committee shall be comprised of 11 members. The members shall be appointed as follows: the Director, or his or her designee; the Speaker of the House of Representatives, or his or her designee; the President of the Senate, or his or her designee; the Minority Leader of the House of Representatives, or his or her designee; the Minority Leader of the Senate, or his or her designee; and the following members to be appointed by the Director:

(1) one member representing a general statewide agricultural association;

(2) one member representing an association representing producers of corn;

(3) one member representing an association representing producers of soybeans;

(4) 2 members representing labor organizations affiliated with the Illinois AFL-CIO; and

(5) one member representing renewable fuels production facilities.

The Department must solicit proposals for grants that provide funds for projects, including but not limited 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 pilot-scale demonstration projects that advance the State's leadership in the development of a bio-based economy.

Rulemaking authority to implement this Section, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.

(20 ILCS 689/15.3 new)

Sec. 15.3. Renewable Fuels Rail Infrastructure Assistance Program. The Department must 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. The recipient of a grant under this Section must enter into a project labor agreement for the rail infrastructure project as provided in Section 25 of this Act. Grant applications shall be submitted on forms prescribed by the Department.

Rulemaking authority to implement this Section, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.

(20 ILCS 689/15.4 new)

Sec. 15.4. Renewable Fuels Technology Program Fund. To provide incentives to ethanol production facilities to reduce their water and energy usage to better manage our resources and reduce carbon emissions, ethanol facilities modifying their production process or incorporating new technologies in their new construction are also eligible for the following funding:

(1) A grant of 10% up to $2,500,000 of the additional costs of reducing their net water usage to 2.8 gallons of water per gallon of ethanol.

(2) A grant of 10% up to $4,000,000 of the costs to reduce by 20% the natural gas required to produce a gallon of absolute ethanol using a base energy requirement for a dry mill natural gas fired ethanol plant of 34,500 BTUs per gallon of ethanol.

(3) A grant of 10% up to $2,500,000 of the costs to add a co-generation system designed to provide the electrical needs of the facility.

Rulemaking authority to implement this Section, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.

(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 $20,000,000 annually in fiscal years 2010 and 2011 and $15,000,000 thereafter; no more than $5,000,000 annually of these grant funds may be used for bio-diesel plants; $20,000,000.

(2) grants awarded under the Renewable Fuels Majority Blended Ethanol Infrastructure Program may not exceed $3,500,000 annually for fiscal years 2010 through 2015;

(3) grants awarded under the Renewable Fuels Rail Infrastructure Assistance Program may not exceed $5,000,000 annually for fiscal years 2010 through 2013;

(4) grants awarded under the Renewable Fuels Technology Program Fund may not exceed $10,000,000 annually for fiscal years 2010 through 2015.

Rulemaking authority to implement this Section, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.

(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 Sections 5.719 and 6z-80 as follows:

(30 ILCS 105/5.719 new)

Sec. 5.719. The Renewable Fuels Development Program Fund.

(30 ILCS 105/6z-80 new)

Sec. 6z-80. 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.

There shall be deposited into the Renewable Fuels Development Program Fund those bond proceeds and other moneys that may, from time to time, be provided by law. If the moneys provided by law are not sufficient to provide the annual funding level in the Renewable Fuels Development Program Fund at the levels prescribed below, the State Comptroller must direct the State Treasurer to transfer from the General Revenue Fund to the Renewable Fuels Development Program Fund, no later than February 1, 2009 and on December 1 each year thereafter, the necessary amount to provide the funds at the level specified for each fiscal year below:

Rulemaking authority to implement this Section, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.

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