SB0293sam001 96TH GENERAL ASSEMBLY

Sen. Michael Noland

Filed: 3/25/2009

09600SB0293sam001 LRB096 05586 JDS 23322 a

AMENDMENT TO SENATE BILL 293

AMENDMENT NO. ______. Amend Senate Bill 293 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, 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) Grant recipients under this Program shall be:

(1) awarded a grant equal to a minimum of 4 cents per gallon of annual production capacity but no more than $5,000,000 for each facility that produces biodiesel and no more than $10,000,000 for each facility that produces any other type of renewable fuel; and

(2) eligible for additional incentives beyond those otherwise mentioned in this Act for facilities utilizing technologies that increase the overall efficiency of the renewable fuel production process or reduce the overall full life-cycle greenhouse gas emissions of the renewable fuel produced, including, but not limited to, processes that:

(1) improve water conservation;

(2) improve energy conservation;

(3) add value to bio-fuel co-products and bi-products;

(4) utilize corn fiber conversion;

(5) utilize fractionation; or

(6) utilize cellulosic conversion.

(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, subject to appropriation, 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 Program shall be 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% of 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 recipient of a grant under this Section must enter into a project labor agreement as provided in Section 25 of this Act if the recipient plans to install majority blended ethanol distribution pumps at 3 or more locations. Grant applications shall be submitted on forms prescribed by the Department. The Department shall have the authority to adopt rules and forms as it deems necessary for the implementation of this Section.

(20 ILCS 689/15.2 new)

Sec. 15.2. Illinois Renewable Fuels Competitive Commercialization Program. The Department shall, subject to appropriation, develop and administer a grant program to assist members of the Illinois Corn Grain to Fuel Research Consortium in research and support efforts on behalf of corn kernel to fuel alcohol and value added co-products, corn stover to fuel alcohol, and cellulosic fuel alcohol production. The Department shall solicit proposals for funding if they provide for research in the Consortium member's own laboratories, for research collaborations among Consortium members, or for members outside the Consortium conducting pilot testing at the National Corn-to-Ethanol Research Center. Preference will be given to projects in partnership with industry or for pilot-scale demonstration projects that advance Illinois 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 must, subject to appropriation, 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 container shipping of renewable fuel and renewable fuel co-products. 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.

(20 ILCS 689/15.4 new)

Sec. 15.4. Renewable Fuels Technology Program. To provide incentives to existing 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.

(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 shall not exceed $25,000,000 annually in fiscal years 2010 and 2014 and $20,000,000 thereafter.

(2) the Illinois Corn Grain to Fuel Research Consortium Assistance Program shall not exceed $10,000,000 annually, of which no less than $5,000,000 annually shall be used for corn stover to fuel alcohol and other cellulosic fuel alcohol research.

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

(20 ILCS 689/25)

Sec. 25. Project labor agreements.

(a) The project labor agreement must include the following:

(1) provisions establishing the minimum hourly wage for each class of labor organization employee;

(2) provisions establishing the benefits and other compensation for each class of labor organization employee; and

(3) provisions establishing that no strike or disputes will be engaged in by the labor organization employees; and .

(4) Provisions establishing that no lockout or disputes will be engaged in by the owner of the plant, including any person or entity constructing, modifying, altering, or retrofitting a plant on behalf of the owner, or by a grant recipient under Section 15.1 of this Act, including any person or entity constructing or installing majority blended ethanol infrastructure facilities on the recipient's behalf. A labor organization and the The owner of the plant receiving a grant under Section 15 or 15.3 of this Act and the labor organizations shall have the authority to include other terms and conditions as they deem necessary.

(b) The project labor agreement shall be filed with the Director in accordance with procedures established by the Department. At a minimum, the project labor agreement must provide the names, addresses, and occupations of the owner of the plant and the individuals representing the labor organization employees participating in the project labor agreement. The agreement must also specify the terms and conditions required in subsection (a).

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

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