HB6115 96TH GENERAL ASSEMBLY

LRB096 20012 JDS 35503 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB6115

Introduced 2/11/2010, by Rep. Julie Hamos

SYNOPSIS AS INTRODUCED:

415 ILCS 5/13.7 new
415 ILCS 135/5
415 ILCS 135/10
415 ILCS 135/20
415 ILCS 135/65
415 ILCS 135/85
415 ILCS 135/90 new

Amends the Environmental Protection Act. Prohibits, on and after January 1, 2011, the installation of drycleaning machines that use perchloroethylene (PERC). Prohibits, on and after January 1, 2013, the use of PERC in certain drycleaning applications. Bans, beginning on January 1, 2026, the use of PERC in drycleaning. Defines "drycleaning" and "drycleaning machine". Amends the Drycleaner Environmental Response Trust Fund Act. Imposes, and requires the Department of Revenue to collect, 2 additional taxes on PERC. Requires moneys received from these taxes to be deposited into a grant account in the Drycleaner Environmental Trust Fund. Provides that moneys in the grant account may be used, subject to certain limitations, to (i) establish a demonstration program to showcase green solvent drycleaning technologies and (ii) provide grants to encourage a transition to use of those technologies. Authorizes the Drycleaner Environmental Response Trust Fund Council to adopt rules for administering the grant program. Repeals one PERC tax on January 1, 2020 and makes changes to prevent the repeal of another PERC tax on that date. Defines "drycleaning machine" and "green solvent". Effective immediately.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning safety.

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

Section 5. The Environmental Protection Act is amended by adding Section 13.7 as follows:

(415 ILCS 5/13.7 new)

Sec. 13.7. Phase-out of perchloroethylene in drycleaning.

(a) Definitions. For the purposes of this Section:

"Drycleaning" means the process of cleaning clothing, garments, textiles, fabrics, leather goods, or other like articles using a nonaqueous solvent.

"Drycleaning machine" means any machine, device, or other equipment used in drycleaning.

(b) Prohibitions.

(1) Beginning January 1, 2011, no person shall install a drycleaning machine that uses perchloroethylene.

(2) Beginning January 1, 2013, no person shall use perchloroethylene in drycleaning that is conducted in (i) a building that contains a residence or (ii) a facility that shares a common wall, floor, or ceiling with a residence.

(3) Beginning January 1, 2013, no person shall use a drycleaning machine that uses perchloroethylene if the machine is 15 years old or older based on its date of manufacture.

(4) Beginning January 1, 2026, no person shall use perchloroethylene in drycleaning.

Section 10. The Drycleaner Environmental Response Trust Fund Act is amended by changing Sections 5, 10, 20, 65, and 85 and by adding Section 90 as follows:

(415 ILCS 135/5)

Sec. 5. Definitions. As used in this Act:

(a) "Active drycleaning facility" means a drycleaning facility actively engaged in drycleaning operations and licensed under Section 60 of this Act.

(b) "Agency" means the Illinois Environmental Protection Agency.

(c) "Claimant" means an owner or operator of a drycleaning facility who has applied for reimbursement from the remedial account or who has submitted a claim under the insurance account with respect to a release.

(d) "Council" means the Drycleaner Environmental Response Trust Fund Council.

(e) "Drycleaner Environmental Response Trust Fund" or "Fund" means the fund created under Section 10 of this Act.

(f) "Drycleaning facility" means a facility located in this State that is or has been engaged in drycleaning operations for the general public, other than a:

(1) facility located on a United States military base;

(2) industrial laundry, commercial laundry, or linen supply facility;

(3) prison or other penal institution that engages in drycleaning only as part of a Correctional Industries program to provide drycleaning to persons who are incarcerated in a prison or penal institution or to resident patients of a State-operated mental health facility;

(4) not-for-profit hospital or other health care facility; or a

(5) facility located or formerly located on federal or State property.

(f-5) "Drycleaning machine" means any machine, device, or other equipment used in drycleaning operations.

(g) "Drycleaning operations" means drycleaning of apparel and household fabrics for the general public, as described in Standard Industrial Classification Industry No. 7215 and No. 7216 in the Standard Industrial Classification Manual (SIC) by the Technical Committee on Industrial Classification.

(h) "Drycleaning solvent" means any and all nonaqueous solvents, including but not limited to a chlorine-based or petroleum-based formulation or product, including green solvents, that are used as a primary cleaning agent in drycleaning operations.

(i) "Emergency" or "emergency action" means a situation or an immediate response to a situation to protect public health or safety. "Emergency" or "emergency action" does not mean removal of contaminated soils, recovery of free product, or financial hardship. An "emergency" or "emergency action" would normally be expected to be directly related to a sudden event or discovery and would last until the threat to public health is mitigated.

(i-5) "Green solvent" means a solvent evaluated and determined by the Council, in consultation with the Agency, not to pose a threat to human health and safety or the environment during its normal course of use or when released into the environment.

(j) "Groundwater" means underground water that occurs within the saturated zone and geologic materials where the fluid pressure in the pore space is equal to or greater than the atmospheric pressure.

(k) "Inactive drycleaning facility" means a drycleaning facility that is not being used for drycleaning operations and is not registered under this Act.

(l) "Maintaining a place of business in this State" or any like term means (1) having or maintaining within this State, directly or through a subsidiary, an office, distribution facility, distribution house, sales house, warehouse, or other place of business or (2) operating within this State as an agent or representative for a person or a person's subsidiary engaged in the business of selling to persons within this State, irrespective of whether the place of business or agent or other representative is located in this State permanently or temporary, or whether the person or the person's subsidiary engages in the business of selling in this State.

(m) "No Further Remediation Letter" means a letter provided by the Agency pursuant to Section 58.10 of Title XVII of the Environmental Protection Act.

(n) "Operator" means a person or entity holding a business license to operate a licensed drycleaning facility or the business operation of which the drycleaning facility is a part.

(o) "Owner" means (1) a person who owns or has possession or control of a drycleaning facility at the time a release is discovered, regardless of whether the facility remains in operation or (2) a parent corporation of the person under item (1) of this subdivision.

(p) "Parent corporation" means a business entity or other business arrangement that has elements of common ownership or control or that uses a long-term contractual arrangement with a person to avoid direct responsibility for conditions at a drycleaning facility.

(q) "Person" means an individual, trust, firm, joint stock company, corporation, consortium, joint venture, or other commercial entity.

(r) "Program year" means the period beginning on July 1 and ending on the following June 30.

(s) "Release" means any spilling, leaking, emitting, discharging, escaping, leaching, or dispersing of drycleaning solvents from a drycleaning facility to groundwater, surface water, or subsurface soils.

(t) "Remedial action" means activities taken to comply with Sections 58.6 and 58.7 of the Environmental Protection Act and rules adopted by the Pollution Control Board under those Sections.

(u) "Responsible party" means an owner, operator, or other person financially responsible for costs of remediation of a release of drycleaning solvents from a drycleaning facility.

(v) "Service provider" means a consultant, testing laboratory, monitoring well installer, soil boring contractor, other contractor, lender, or any other person who provides a product or service for which a claim for reimbursement has been or will be filed against the remedial account or insurance account, or a subcontractor of such a person.

(w) "Virgin facility" means a drycleaning facility that has never had chlorine-based or petroleum-based drycleaning solvents stored or used at the property prior to it becoming a green solvent drycleaning facility.

(Source: P.A. 93-201, eff. 1-1-04.)

(415 ILCS 135/10)

Sec. 10. Drycleaner Environmental Response Trust Fund.

(a) The Drycleaner Environmental Response Trust Fund is created as a special fund in the State Treasury. Moneys deposited into the Fund shall be used solely for the purposes of the Council and for other purposes as provided in this Act. The Fund shall include moneys credited to the Fund under this Act and other moneys that by law may be credited to the Fund. The State Treasurer may invest Funds deposited into the Fund at the direction of the Council. Interest, income from the investments, and other income earned by the Fund shall be credited to and deposited into the Fund.

Pursuant to appropriation, all moneys in the Drycleaner Environmental Response Trust Fund shall be disbursed by the Agency to the Council for the purpose of making disbursements, if any, in accordance with this Act and for the purpose of paying the ordinary and contingent expenses of the Council. After June 30, 1999, pursuant to appropriation, all moneys in the Drycleaner Environmental Response Trust Fund may be used by the Council for the purpose of making disbursements, if any, in accordance with this Act and for the purpose of paying the ordinary and contingent expenses of the Council.

The Fund may be divided into different accounts with different depositories to fulfill the purposes of the Act as determined by the Council.

Moneys in the Fund at the end of a State fiscal year shall be carried forward to the next fiscal year and shall not revert to the General Revenue Fund.

(b) The specific purposes of the Fund include but are not limited to the following:

(1) To establish an account to fund remedial action of drycleaning solvent releases from drycleaning facilities as provided by Section 40.

(2) To establish an insurance account for insuring environmental risks from releases from drycleaning facilities within this State as provided by Section 45.

(3) To establish an account to fund grants as provided in Section 90.

(c) The State, the General Revenue Fund, and any other Fund of the State, other than the Drycleaner Environmental Response Trust Fund, shall not be liable for a claim or cause of action in connection with a drycleaning facility not owned or operated by the State or an agency of the State. All expenses incurred by the Fund shall be payable solely from the Fund and no liability or obligation shall be imposed upon the State. The State is not liable for a claim presented against the Fund.

(d) The liability of the Fund is limited to the extent of coverage provided by the account under which a claim is submitted, subject to the terms and conditions of that coverage. The liability of the Fund is further limited by the moneys made available to the Fund, and no remedy shall be ordered that would require the Fund to exceed its then current funding limitations to satisfy an award or which would restrict the availability of moneys for higher priority sites.

(e) Nothing in this Act shall be construed to limit, restrict, or affect the authority and powers of the Agency or another State agency or statute unless the State agency or statute is specifically referenced and the limitation is clearly set forth in this Act.

(Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

(415 ILCS 135/20)

Sec. 20. Council rules.

(a) The Council may adopt rules in accordance with the emergency rulemaking provisions of Section 5-45 of the Illinois Administrative Procedure Act for one year after the effective date of this Act. Thereafter, the Council shall conduct general rulemaking as provided under the Illinois Administrative Procedure Act.

(b) The Council shall adopt rules regarding its practice and procedures for investigating and settling claims made against the Fund, determining reimbursement guidelines, coordinating with the Agency, and otherwise implementing and administering the Fund under this Act.

(c) The Council shall adopt rules regarding its practice and procedures to develop underwriting standards, establish insurance account coverage and risk factors, settle claims made against the insurance account of the Fund, determine appropriate deductibles or retentions in coverages or benefits offered under the insurance account of the Fund, determine reimbursement guidelines, and otherwise implement and administer the insurance account under this Act.

(d) The Council shall adopt rules necessary for the implementation and collection of insurance account premiums prior to offering insurance to an owner or operator of a drycleaning facility or other person.

(e) The Council shall adopt rules prescribing requirements for the retention of records by an owner or operator and the periods for which he or she must retain those records.

(f) The Council shall adopt rules describing the manner in which all disbursed moneys received from the Agency shall be deposited with a bank or savings and loan association to be approved by the Council. For purposes of this subsection, the Council shall be considered a public agency and, therefore, no bank or savings and loan association shall receive public funds from the Council, and the Council shall not make any investments, unless in accordance with the Public Funds Investment Act.

(g) Except for the award of grants under Section 90 of this Act, all All final Council decisions regarding the Fund or any reimbursement from the Fund and any decision concerning the classification of drycleaning solvents pursuant to subsection (a) of Section 65 of this Act and any notice of the assessment of civil penalties under Section 69 of this Act shall be subject to appeal to the Administrator of the Council, by the affected parties, within 60 days after the final decision. The Council shall determine by rule persons who have standing to appeal final Council decisions. Any written decision by the Administrator may be appealed to the Council within 60 days after the Administrator's final decision. Any decision by the Council may be appealed to the Council's administrative law judge within 60 days after the Council's final decision. Notice of any hearing provided for by this Act shall be given not less than 7 days before the day fixed for the hearing. An appeal of the administrative law judge's decision will be subject to judicial review in accordance with the Administrative Review Law.

Any decision not timely appealed shall become a final administrative decision without the necessity of a final administrative decision being issued and shall be deemed to be a final administrative decision.

The Council shall adopt rules relating to appeal procedures.

The Council may designate an attorney, employed by the Council or privately employed, to act as an administrative law judge to preside at any administrative hearing resulting from the appeal of a Council decision. The Council and the Department of Revenue are authorized to enter into an agreement whereby an administrative law judge employed by the Department may be assigned to preside at the administrative hearings.

Proof of the Council's administrative decision may be made at any administrative or legal proceeding by a reproduced copy of the Council's record relating to the decision under the certificate of the Council. A reproduced copy shall, without further proof, be admitted into evidence and shall be prima facie proof of the decision.

The provisions of the Administrative Review Law, and any rules adopted under the Administrative Review law by the Council, shall govern all proceedings for the judicial review of final administrative decisions of the Council. The term "administrative decision" has the same meaning as it does in Section 3-101 of the Code of Civil Procedure.

Venue for an administrative review action challenging the results of an administrative hearing upholding an administrative decision issued by the Council shall be proper in the Circuit Court of the county where the plaintiff has its principal place of business, or Sangamon County if the plaintiff's principal place of business is located outside Illinois.

(h) The Council shall adopt rules for the awarding of grants pursuant to Section 90 of this Act, and for otherwise implementing and administering the grant account under this Act.

(Source: P.A. 96-774, eff. 1-1-10.)

(415 ILCS 135/65)

(Section scheduled to be repealed on January 1, 2020)

Sec. 65. Drycleaning solvent tax.

(a) On and after January 1, 1998 and before January 1, 2020, a tax is imposed upon the use of drycleaning solvent by a person engaged in the business of operating a drycleaning facility in this State at the rate of $3.50 per gallon of perchloroethylene or other chlorinated drycleaning solvents used in drycleaning operations, $0.35 per gallon of petroleum-based drycleaning solvent, and $1.75 per gallon of green solvents, unless the green solvent is used at a virgin facility, in which case the rate is $0.35 per gallon. The Council shall determine by rule which products are chlorine-based solvents, which products are petroleum-based solvents, and which products are green solvents. All drycleaning solvents shall be considered chlorinated solvents unless the Council determines that the solvents are petroleum-based drycleaning solvents or green solvents.

(a-3) On and after January 1, 2011, a tax is imposed upon the use of perchloroethylene by a person engaged in the business of operating a drycleaning facility in this State at the rate of $14 per gallon of perchloroethylene used in drycleaning operations. On January 1, 2012, the tax shall increase to the rate of $15 per gallon of perchloroethylene used in drycleaning operations. The tax shall continue to increase by one dollar per gallon on each subsequent January 1 through January 1, 2017. On and after January 1, 2017, the tax shall be $20 per gallon of perchloroethylene used in drycleaning operations. The tax imposed under this subsection (a-3) shall be in addition to the taxes imposed under subsections (a) and (a-5) of this Section.

(a-5) On January 1, 2011, there is imposed on each operator of a drycleaning facility a tax on perchloroethylene held by the operator on that date for use in a drycleaning facility. The tax imposed shall be the tax that would have been imposed under subsection (a-3) if the perchloroethylene held by the operator on that date had been purchased by the operator during calendar year 2011. The tax imposed under this subsection (a-5) shall be in addition to the taxes imposed under subsections (a) and (a-3) of this Section.

(b) The taxes tax imposed by this Act shall be collected from the purchaser at the time of sale by a seller of drycleaning solvents maintaining a place of business in this State and shall be remitted to the Department of Revenue under the provisions of this Act.

(c) A The tax imposed by this Act that is not collected by a seller of drycleaning solvents shall be paid directly to the Department of Revenue by the purchaser or end user who is subject to the tax imposed by this Act.

(d) No tax shall be imposed upon the use of drycleaning solvent if the drycleaning solvent will not be used in a drycleaning facility. No tax shall be imposed under subsection (a) of this Section or if a floor stock tax has been imposed and paid on the drycleaning solvent. Prior to the purchase of the solvent, the purchaser shall provide a written and signed certificate to the drycleaning solvent seller stating:

(1) the name and address of the purchaser;

(2) the purchaser's signature and date of signing; and

(3) one of the following:

(A) that the drycleaning solvent will not be used in a drycleaning facility; or

(B) that a floor stock tax has been imposed and paid on the drycleaning solvent.

(e) On January 1, 1998, there is imposed on each operator of a drycleaning facility a tax on drycleaning solvent held by the operator on that date for use in a drycleaning facility. The tax imposed shall be the tax that would have been imposed under subsection (a) if the drycleaning solvent held by the operator on that date had been purchased by the operator during the first year of this Act.

(f) On or before the 25th day of the 1st month following the end of the calendar quarter, a seller of drycleaning solvents who has collected a tax pursuant to this Section during the previous calendar quarter, or a purchaser or end user of drycleaning solvents required under subsection (c) to submit the tax directly to the Department, shall file a return with the Department of Revenue. The return shall be filed on a form prescribed by the Department of Revenue and shall contain information that the Department of Revenue reasonably requires, but at a minimum will require the reporting of the volume of drycleaning solvent sold to each licensed drycleaner. The Department of Revenue shall report quarterly to the Council the volume of drycleaning solvent purchased for the quarter by each licensed drycleaner. Each seller of drycleaning solvent maintaining a place of business in this State who is required or authorized to collect a the tax imposed by this Act shall pay to the Department the amount of the tax at the time when he or she is required to file his or her return for the period during which the tax was collected. Purchasers or end users remitting the tax directly to the Department under subsection (c) shall file a return with the Department of Revenue and pay the tax so incurred by the purchaser or end user during the preceding calendar quarter.

Except as provided in this Section, the seller of drycleaning solvents filing the return under this Section shall, at the time of filing the return, pay to the Department the amount of tax imposed by this Act less a discount of 1.75%, or $5 per calendar year, whichever is greater. Failure to timely file the returns and provide to the Department the data requested under this Act will result in disallowance of the reimbursement discount.

(g) The taxes tax on drycleaning solvents used in drycleaning facilities and the floor stock tax shall be administered by Department of Revenue under rules adopted by that Department.

(h) On and after January 1, 1998, no person shall knowingly sell or transfer drycleaning solvent to an operator of a drycleaning facility that is not licensed by the Council under Section 60.

(i) The Department of Revenue may adopt rules as necessary to implement this Section.

(Source: P.A. 96-774, eff. 1-1-10.)

(415 ILCS 135/85)

Sec. 85. Repeal of fee and tax provisions. Section Sections 60 and 65 of this Act is are repealed on January 1, 2020.

(Source: P.A. 93-201, eff. 1-1-04.)

(415 ILCS 135/90 new)

Sec. 90. Grant account.

(a) The grant account is established to provide incentives to owners and operators of active drycleaning facilities that use perchloroethylene to transition to drycleaning operations that use green solvents.

(b) All moneys received from the taxes established under subsections (a-3) and (a-5) of Section 65 of this Act shall be deposited into the grant account.

(c) The Council shall award grants from the grant account on a competitive basis subject to availability of funding. To be eligible for a grant under this Section, an applicant must replace all of its drycleaning machines at an active drycleaning facility that use perchloroethylene with drycleaning machines that use green solvents. The Council shall determine the eligibility of grant recipients pursuant to rules adopted under subsection (h) of Section 20 of this Act.

(d) Grants shall be limited to a maximum of $10,000, and no person shall receive more than this amount under this Section. Grant moneys shall be used solely for the purchase and installation of drycleaning machines that use green solvents. Grants shall be awarded as matching funds and shall not exceed 50% of the cost of purchasing and installing the drycleaning machines.

(e) In awarding grants the Council may give weight to geographic location to enhance the geographic distribution of grants across this State.

(f) The Council may establish a demonstration program to showcase green solvent drycleaning technologies in this State. The demonstration program must require 50% matching funds to cover the costs of the demonstration program. Any person may contribute moneys as matching funds, including, but not limited to, federal, state, or local government entities and nonprofit entities. Not more than 30% of the moneys deposited annually in the grant account may be used for the demonstration program.

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