SB1630 96TH GENERAL ASSEMBLY

LRB096 02842 KTG 12855 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB1630

Introduced 2/19/2009, by Sen. Michael W. Frerichs

SYNOPSIS AS INTRODUCED:

815 ILCS 370/3	from Ch. 5, par. 1703
815 ILCS 370/4.2 new

Amends the Motor Fuel and Petroleum Standards Act. Requires a supplier that imports gasoline into the State to offer for sale to a distributor or retailer gasoline that is not preblended with fuel alcohol and that is suitable for subsequent blending with fuel alcohol. Further provides that any contract provision that would restrict or prevent a distributor from blending gasoline with fuel alcohol or from qualifying for any federal or State tax credit due to blenders is contrary to public policy and void. Makes other changes. Effective January 1, 2010.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning business.

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

Section 5. The Motor Fuel and Petroleum Standards Act is amended by changing Section 3 and by adding Section 4.2 as follows:

(815 ILCS 370/3) (from Ch. 5, par. 1703)

Sec. 3. As used in this Act, unless the context otherwise requires:

(1) "ASTM" means the American Society for Testing and Materials, an international, nonprofit, technical, scientific and educational society devoted to the promotion of knowledge of the materials of engineering, and the standardization of specifications and methods of testing.

(2) "Motor Fuel" shall have the meaning ascribed to that term in Section 1.1 of the "Motor Fuel Tax Law", as now or hereafter amended.

(3) "Petroleum" means all illuminating oils, heating oils, LP gas, kerosene, gasoline, diesel and all volatile and inflammable liquids produced, blended or compounded for the purpose of, or which are suitable or practicable for, operating motor vehicles.

(4) "Department" means the Illinois Department of Agriculture.

(5) "Person" means an individual, a corporation, company, society, association, partnership or governmental entity.

(6) "Distributor" shall have the meaning ascribed to that term in Section 1.2 of the "Motor Fuel Tax Law", as now or hereafter amended, and any person who either produces, refines, blends, transports, compounds or manufactures petroleum in this State for the purposes of resale.

(7) "Director" means the Director of the Illinois Department of Agriculture or authorized designee.

(8) "Retailer" shall have the meaning ascribed to that term in Section 2 of the "Use Tax Act", as now or hereafter amended and any person engaged in the business of selling petroleum directly to the ultimate consumer.

(9) "Co-solvent" means an alcohol that is miscible with methanol and has a molecular weight equal to or greater than that of butanol.

(10) "Blender" shall have the meaning ascribed to that term by Section 1.6 of the Motor Fuel Tax Law.

(11) "Fuel Alcohol" means alcohol, methanol, or fuel grade ethanol.

(12) "Gasoline" shall have the meaning ascribed to that term by Section 10 of the Illinois Renewable Fuels Development Program Act.

(13) "Supplier" shall have the meaning ascribed to that term by Section 1.14 of the Motor Fuel Tax Law.

(14) "Terminal Track" shall have the meaning ascribed to that term by Section 1.23 of the Motor Fuel Tax Law.

(Source: P.A. 86-232.)

(815 ILCS 370/4.2 new)

Sec. 4.2. Availability of gasoline suitable for blending with fuel alcohol; blender of record.

(a) A supplier that imports gasoline into the State shall offer gasoline for sale to a distributor or retailer that is not preblended with fuel alcohol and that is suitable for subsequent blending with fuel alcohol.

(b) The General Assembly finds that the use of blended fuels reduces dependence on imported oil and is therefore in the public interest. The General Assembly further finds that gasoline may be blended with fuel alcohol below the terminal rack by distributors and retailers as well as above the terminal rack by suppliers and that there is no reason to restrict or prevent blending by suppliers, distributors, or retailers. Therefore, any provision of any contract that would restrict or prevent a distributor or retailer from blending gasoline with fuel alcohol or from qualifying for any federal of State tax credit due to blenders is contrary to public policy and is void. This subsection does not impair the obligation of existing contracts, but does apply if such contract is modified, amended, or renewed.

Section 99. Effective date. This Act takes effect January 1, 2010.