95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0268

 

Introduced 2/7/2007, by Sen. Jacqueline Y. Collins

 

SYNOPSIS AS INTRODUCED:
 
New Act
625 ILCS 5/3-835 new
30 ILCS 105/5.675 new

    Creates the Illinois Diesel Emissions Reduction Act. Creates the Illinois Diesel Emissions Reduction Funding Program and the Diesel Emissions Reduction Fund. Provides that moneys in the Fund shall be used only to implement the Funding Program. Requires the collection of a surcharge on the retail sale or lease of certain diesel vehicles that are of a model year 2006 or earlier and are not equipped with Level 3 Controls. Requires a similar surcharge on the registration of certain diesel vehicles. Requires IEPA, in consultation with the State Treasurer and after notice and public comment, to promulgate rules to establish and implement the Diesel Emissions Reduction Funding Program. Sets out guidelines for the administration of the Diesel Emissions Reduction Funding Program and the corresponding grant and rebate programs. Provides that IEPA may seek injunctive relief in any court of competent jurisdiction to enforce any provision of the Funding Program. Amends the Illinois Vehicle Code. Provides that the Secretary of State shall require additional information with the registration of a diesel motor vehicle to support a reliable and complete inventory of diesel motor vehicles in the State. Provides that the Secretary of State, in consultation with DOT and IEPA, shall, promulgate regulations by October 1, 2008 to develop a program for registration of diesel nonroad vehicles, locomotives, and diesel marine vessels, and shall implement the program beginning January 1, 2009. Contains other provisions. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning finance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 1. Short title. This Act may be cited as the
5 Illinois Diesel Emissions Reduction Act.
 
6     Section 5. Legislative findings and purpose. The
7 Legislature hereby finds and declares that:
8     (a) Diesel exhaust particle pollution poses a clear and
9 present health risk to the people of Illinois. The United
10 States Environmental Protection Agency has classified diesel
11 exhaust as a likely human carcinogen, and has identified diesel
12 particulate matter and diesel exhaust organic gases as toxic
13 air pollutants. Diesel exhaust is also a prime contributor to
14 airborne fine particle pollution that is linked to premature
15 death and other serious cardiovascular and pulmonary problems
16 such as heart attacks, abnormal heart rhythms,
17 atherosclerosis, stroke, asthma attacks, permanent respiratory
18 damage, and retardation of lung growth in children.
19     (b) The health impacts from diesel emissions particularly
20 affect children, the elderly, and people with weakened immune
21 systems.
22     (c) Particularly high concentrations of diesel emissions
23 often occur in heavily traveled transportation corridors,

 

 

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1 intermodal yards, bus depots, and construction sites; these
2 diesel "hot spots" often are found in densely populated urban
3 areas, disproportionately impacting ethnic minorities and
4 people of lower economic status.
5     (d) Diesel engine crankcases also are a source of emissions
6 that can seep into the cabin and expose vehicle drivers and
7 passengers to harmful diesel emissions.
8     (e) Diesel exhaust also contains black carbon emissions,
9 which contribute to global climate change.
10     (f) Reduction of diesel emissions can help address these
11 human health and climate problems.
12     (g) The United States Environmental Protection Agency has
13 enacted requirements over the past few years requiring the
14 substantial reduction of emissions from new diesel engines in
15 both heavy-duty highway vehicles and land-based nonroad
16 equipment. However, these regulations do not apply to any of
17 the over 11,000,000 existing diesel engines in the United
18 States, most of which emit substantially more pollution and
19 often remain in service for 10 to 30 years depending on the
20 type of engine and equipment.
21     (h) Practical, cost-effective measures to substantially
22 reduce diesel particulate emissions are available today, and
23 can be applied to many existing diesel engines. The same
24 technology that limits diesel pollution from new diesel engines
25 can be retrofitted onto existing engines or applied in new
26 replacement engines to reduce diesel emissions by 85% or more.

 

 

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1     (i) Therefore, the purpose of this Funding Program is to
2 help minimize the public health risks from exposure to diesel
3 particulate emissions as expeditiously as practical.
 
4     Section 10. Definitions. For purposes of this Act:
5     (a) "Auxiliary power unit" means a portable,
6 vehicle-mounted system that provides climate control and power
7 for a diesel vehicle interior cabin without using the
8 propulsion engine.
9     (b) "CARB" means the California Air Resources Board.
10     (c) "Certified engine configuration" means a new, rebuilt,
11 or remanufactured engine configuration:
12         (1) that has been certified or verified by USEPA or
13     CARB;
14         (2) that meets or exceeds certain engine emissions
15     standards, as determined by IEPA; and
16         (3) in the case of a certified engine configuration
17     involving the replacement of an existing engine or vehicle,
18     an engine configuration that replaced an engine that was
19     removed from the vehicle and returned to the supplier for
20     remanufacturing to a more stringent set of engine emissions
21     standards or for scrappage.
22     (d) "Closed Crankcase Ventilation System" or "CCV" means
23 equipment that completely closes the crankcase of a diesel
24 engine to the atmosphere and routes the crankcase vapor to the
25 engine intake air system or the exhaust system.

 

 

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1     (f) "DOT" means the Illinois Department of Transportation.
2     (g) "Fleet" means one or more diesel vehicles or mobile or
3 stationary diesel engines owned or operated by the same person
4 or group of related persons.
5     (h) "Heavy duty diesel vehicle" means a motor vehicle with
6 a gross vehicle weight rating of at least 14,000 pounds that is
7 powered by a diesel engine.
8     (i) "IEPA" means the Illinois Environmental Protection
9 Agency.
10     (j) "Incremental cost" means the cost of an applicant's
11 emission reduction measure actions, less the baseline cost that
12 would otherwise be incurred by the applicant in the normal
13 course of business. Incremental costs may include added lease
14 or fuel costs as well as capital costs.
15     (k) "Level 3 Control" means a Verified Diesel Emission
16 Control Device that achieves a particulate matter (PM) emission
17 reduction of 85% or more from uncontrolled engine emission
18 levels, or that reduces emissions to less than or equal to 0.01
19 grams of PM per brake horsepower-hour. Level 3 Control includes
20 repowering or replacing the existing diesel engine with an
21 engine meeting USEPA's 2007 Heavy-duty Highway Diesel
22 Standards, or in the case of a nonroad engine, an engine
23 meeting the USEPA's Tier 4 Nonroad Diesel Standards; Level 3
24 Control also includes new diesel engines meeting the emissions
25 standards.
26     (l) "Medium duty diesel vehicle" means a motor vehicle with

 

 

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1 a gross vehicle weight rating of at least 8,500 pounds and less
2 than 14,000 pounds that is powered by a diesel engine.
3     (m) "Motor vehicle" means any self-propelled vehicle
4 designed for transporting persons or property on a street or
5 highway, including an on-road diesel vehicle.
6     (n) "Nonroad engine" means an internal combustion engine
7 (including the fuel system) that is not used in a motor vehicle
8 or a vehicle used solely for competition, or that is not a
9 stationary source, except that this term shall apply to
10 internal combustion engines used to power generators,
11 compressors, or similar equipment used in any construction
12 program or project.
13     (o) "Nonroad vehicle" means a vehicle or piece of equipment
14 that is powered by a nonroad engine, 50 horsepower and greater,
15 and that is not a motor vehicle or a vehicle used solely for
16 competition, which shall include, but not be limited to,
17 excavators, backhoes, cranes, compressors, generators,
18 bulldozers, and similar equipment; unless otherwise indicated,
19 nonroad vehicles do not include locomotives or marine vessels.
20     (p) "Person" means any natural person, co-partnership,
21 firm, company, association, joint stock association,
22 corporation, or other like organization or entity.
23     (q) "PM" means particulate matter, a criteria pollutant
24 listed under Section 7408 of the federal Clean Air Act.
25     (r) "Public agency" means a state, city, county,
26 administration, department, division, bureau, board,

 

 

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1 commission, corporation, institution, or agency of government,
2 the expenses of which are paid in whole or in part from the
3 public treasury.
4     (s) "Retrofit" means to equip a diesel motor vehicle or
5 nonroad vehicle with new particulate emissions-reducing parts
6 or technology verified by USEPA or CARB after manufacture of
7 the original engine.
8     (t) "Ultra low sulfur diesel fuel" means diesel fuel that
9 has a sulfur content of no more than 15 parts per million.
10     (u) "USEPA" means the United States Environmental
11 Protection Agency.
12     (x) "Verified diesel emission control device" means:
13         (1) an emission control device or strategy that has
14     been verified to achieve a specified diesel PM reduction by
15     USEPA or CARB; or
16         (2) replacement or repowering with an engine that is
17     certified to specific PM emissions performance by USEPA or
18     CARB.
19     (y) "Verified technology" means a verified diesel emission
20 control device, an advanced truckstop electrification system,
21 or an auxiliary power unit.
 
22     Section 15. Mechanics of the Diesel Emissions Reduction
23 Funding Program.
24     (a) The Diesel Emissions Reduction Fund (the "Fund") is
25 hereby established as an account in the State treasury.

 

 

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1         (1) The Fund shall be administered by the State
2     Treasurer for the benefit of the Diesel Emissions Reduction
3     Funding Program established under this Section.
4         (2) Interest earned on the Fund shall be credited to
5     the Fund.
6         (3) The Fund consists of: the funds, contributions,
7     fees, and surcharges under: Section 20, subsections
8     (a)(5), (a)(6), (a)(7), (a)(8), (a)(9), (c)(4)(D), and
9     (d)(10).
10         (4) Moneys in the Fund shall be used only to implement
11     the Funding Program, provided that a maximum total of 2% of
12     the money in the Fund may be used for Fund administrative
13     costs incurred by both the IEPA and the State Treasurer.
14     Moneys allocated to an eligible diesel emission reduction
15     measure but not expended in any fiscal year shall be
16     carried over to succeeding fiscal years.
17         (5) A surcharge is hereby imposed on the retail sale,
18     lease, or rental of diesel nonroad vehicles in an amount
19     equal to 1% of the sales price or the lease or rental
20     amount. The State Treasurer shall, within one year after
21     enactment of this Act, adopt any procedures needed for the
22     collection, administration, and enforcement of the
23     surcharge authorized by this subsection, and shall deposit
24     all surcharges to the credit of the Fund.
25         (6) A surcharge is hereby imposed on every retail sale
26     or lease of every heavy duty diesel vehicle that is of a

 

 

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1     model year 2006 or earlier that is not equipped with Level
2     3 Controls and that is sold or leased in this State. The
3     amount of the surcharge is 2.5% of the total consideration.
4     The State Treasurer shall, within one year after the
5     enactment of this Act, adopt any procedures needed for the
6     collection, administration, and enforcement of the
7     surcharge authorized by this subsection, and shall deposit
8     all surcharges to the credit of the Fund.
9         (7) In addition to the registration fees charged under
10     the Illinois Vehicle Code (625 ILCS 5/, Chapter 3, Article
11     VIII), a surcharge is hereby imposed on the registration of
12     a heavy duty diesel vehicle under that Section in an amount
13     equal to 10% of the total fees due for registration of such
14     vehicle thereunder. The surcharges shall be remitted to the
15     State Treasurer for deposit into the Fund.
16         (8) The federal Safe Accountable, Flexible, Efficient
17     Transportation Equity Act - A Legacy for Users clarified
18     eligibility for federal Congestion Mitigation and Air
19     Quality (CMAQ) funds for diesel retrofit projects and
20     establishes such projects as a priority for funding.
21     Beginning with federal fiscal year 2009, not less than 50%
22     of funds expended on an annual basis from accounts related
23     to the CMAQ program shall be made available for the purpose
24     of funding eligible diesel emission reduction measures
25     under the Funding Program established by this Act. Non-CMAQ
26     moneys in the Fund may be used for compliance with the 20%

 

 

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1     match required by CMAQ.
2     (b) Establishment and Administration of the Funding
3 Program. Within one year after the effective date of this
4 Funding Program, IEPA, in consultation with the State Treasurer
5 and after notice and public comment, shall promulgate rules to
6 establish and implement the Diesel Emissions Reduction Funding
7 Program in accordance with this Act.
8         (1) The Funding Program shall consist of either the
9     Grant Program or the Rebate Program established pursuant to
10     this Act, or both programs, as determined by IEPA in its
11     sole discretion.
12         (2) If IEPA elects to disburse Funding Program funds
13     pursuant to the Grant Program, IEPA shall establish and
14     administer that program and shall provide grants and
15     low-cost revolving loans from the Fund, on a competitive
16     basis, to eligible measures to achieve significant
17     reductions of diesel particulate emissions in accordance
18     with the provisions of subsection (c).
19         (3) If IEPA elects to disburse Funding Program funds
20     pursuant to the Rebate Program, IEPA shall establish and
21     administer that program and shall provide rebates from the
22     Fund in accordance with subsection (d).
23         (4) In administering the Funding Program and in
24     accordance with the requirements of this program, IEPA
25     shall:
26             (A) manage Funding Program funds and oversee the

 

 

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1         Funding Program;
2             (B) produce guidelines, protocols, and criteria
3         for eligible emission reduction measures;
4             (C) develop methodologies for evaluating emission
5         reduction measure benefits and cost-effectiveness;
6             (D) develop procedures for monitoring whether the
7         emissions reductions projected for grants awarded for
8         emission reduction measures under this Act are
9         actually achieved;
10             (E) prepare reports regarding the progress and
11         effectiveness of the Funding Program; and
12             (F) take all appropriate and necessary actions so
13         that emissions reductions achieved through the Funding
14         Program may be credited by USEPA to the appropriate
15         emissions reduction objectives in the State
16         implementation plan.
17     (c) Grant Program. Any Grant Program established by IEPA
18 pursuant to subsection (b)(1) shall be implemented in
19 accordance with the following provisions:
20         (1) IEPA shall annually allocate at its discretion some
21     or all of the moneys available in the Fund to the Grant
22     Program. Grant Program funds not expended in a given year
23     shall be transferred to the Grant Program or any Rebate
24     Program established under subsection (d) for the following
25     year at IEPA's discretion.
26         (2) Fund Distribution. Subject to the provisions of

 

 

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1     subsection (a)(4), IEPA shall distribute funds available
2     for each fiscal year for eligible emission reduction
3     measures under the Grant Program in accordance with the
4     following priority:
5             (A) first, to diesel fleets owned and operated by a
6         public agency; if funds are remaining after all such
7         eligible emission reduction measures have been funded,
8         then
9             (B) second, to privately owned diesel fleets
10         operated for the benefit of the public pursuant to a
11         contract with a public agency; and, if funds are
12         remaining after all such eligible emission reduction
13         measures have been funded, then
14             (C) third, to privately owned diesel fleets
15         operating on private business.
16         (3) Applications.
17             (A) To receive a grant or loan under the Grant
18         Program, the applicant shall submit to IEPA an
19         application including such information IEPA may
20         require.
21             (B) An application under this subsection shall
22         include:
23                 (i) a description of the air quality of the
24             area in which the emission reduction measure
25             fleets will operate;
26                 (ii) a description of the emission reduction

 

 

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1             measure proposed by the applicant, including:
2                     (I) any certified engine configuration or
3                 verified technology proposed to be used or
4                 funded in the emission reduction measure; and
5                      (II) the means by which the emission
6                 reduction measure will achieve a significant
7                 reduction in diesel emissions;
8                 (iii) an evaluation (using methodology
9             approved by IEPA) of the quantifiable and
10             unquantifiable benefits of the emissions
11             reductions of the proposed emission reduction
12             measure;
13                 (iv) an estimate of the cost of the proposed
14             emission reduction measure;
15                 (v) a description of the age and expected
16             lifetime control of the equipment to be used or
17             funded in the proposed emission reduction measure;
18                 (vi) a description of the diesel fuel
19             available in the areas to be served by the proposed
20             emission reduction measure, including the sulfur
21             content of the fuel;
22                 (vii) provisions for the monitoring and
23             verification of the emission reduction measure;
24             and
25                 (viii) such other information as may be
26             required by IEPA.

 

 

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1         (4) Eligibility.
2             (A) A proposed emission reduction measure must
3         meet the requirements of this Act to be eligible for a
4         grant or loan under the Grant Program.
5             (B) IEPA may consider for funding the following
6         types of emission reduction measures:
7                 (i) installation of a retrofit technology
8             (including any incremental costs of a repowered or
9             new diesel engine) that significantly reduces
10             particulate emissions through development and
11             implementation of a certified engine configuration
12             or a verified diesel emission control device for a
13             medium-duty or heavy-duty diesel motor vehicle, a
14             diesel nonroad vehicle, a commercial marine engine
15             or a locomotive;
16                 (ii) installation of a CCV on any vehicle or
17             equipment described in subsection (B)(i); and
18                 (iii) programs or emission reduction measures
19             to reduce long-duration idling using verified
20             technology involving a vehicle described in
21             subsection (B)(i); provided that truckstop
22             electrification facilities shall be eligible for
23             low-cost revolving loans but not eligible for
24             grants.
25             (C) In providing a grant or loan under the Grant
26         Program, and subject to the provisions of subsection

 

 

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1         (c)(2), IEPA shall give priority to otherwise eligible
2         emission reduction measures within each of the 3
3         priority categories described in subsection (c)(2)
4         that, as determined by IEPA:
5                 (i) maximize public health benefits;
6                 (ii) are cost-effective;
7                 (iii) serve areas:
8                     (I) with the highest population density;
9                     (II) that are poor air quality areas,
10                 including areas identified by IEPA as:
11                         (a) in nonattainment or maintenance of
12                     national ambient air quality standards for
13                     a criteria pollutant;
14                         (b) Federal Class I areas; or
15                         (c) areas with toxic air pollutant
16                     concerns;
17                     (III) that receive a disproportionate
18                 quantity of air pollution from a diesel fleets,
19                 including truckstops, ports, rail yards,
20                 terminals, and distribution centers; or
21                     (IV) that use a community-based
22                 multi-stakeholder collaborative process to
23                 reduce toxic emissions;
24                 (iv) include a certified engine configuration
25             or verified technology that has a long expected
26             useful life;

 

 

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1                 (v) will maximize the useful life of any
2             certified engine configuration or verified
3             technology used or funded by the project;
4                 (vi) conserve diesel fuel; and
5                 (vii) use ultra low sulfur diesel fuel.
6             (D) For a proposed emission reduction measure to
7         qualify for the Funding Program, other than a project
8         involving a marine vessel or engine, not less than 75%
9         of vehicle miles traveled or hours of operation
10         projected for the 5 years immediately following the
11         award of a grant must be projected to take place in
12         this State. For a proposed emission reduction measure
13         involving a marine vessel or engine, the vessel or
14         engine must be operated in the waterways adjacent to or
15         within Illinois for a sufficient amount of time over
16         the lifetime of the measure, as determined by IEPA, to
17         meet the cost-effectiveness requirements of subsection
18         (c)(5). The owner of any vehicle receiving funding for
19         an emission reduction measure that fails after the
20         award of the grant to meet the geographical
21         requirements of this subsection shall pay a civil
22         penalty to IEPA equal to a portion of the grant funds
23         as IEPA shall require pursuant to prior regulations.
24         The proceeds of all such penalties shall be deposited
25         into the Fund.
26             (E) Each proposed emission reduction measure must

 

 

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1         meet the cost-effectiveness requirements of subsection
2         (c)(5).
3             (F) A proposed emission reduction measure based on
4         the use of a certified engine configuration or verified
5         technology must document, in a manner acceptable to
6         IEPA, a reduction in particulate emissions of at least
7         50% (compared with the baseline emissions adopted by
8         IEPA for the relevant engine year and application to
9         the extent not provided pursuant of the relevant CARB
10         or USEPA verification process). Three years after the
11         enactment of this Act, after study of available
12         emissions reduction technologies, and after public
13         notice and comment, IEPA may increase the minimum
14         percentage reduction in particulate emissions required
15         by this subsection to improve the ability of the
16         Funding Program to achieve its goals.
17         (5) Cost-effectiveness
18             (A) For purposes of this Act, "cost-effectiveness"
19         means the total dollar amount divided by the total
20         number of tons of particulate matter reduction
21         attributable to that expenditure. In calculating
22         cost-effectiveness, one-time grants of money at the
23         beginning of a project shall be annualized using a time
24         value of public funds or discount rate determined for
25         each project by IEPA, taking into account the interest
26         rate on bonds, interest earned by State funds, and

 

 

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1         other factors IEPA considers appropriate.
2             (B) IEPA shall establish reasonable methodologies
3         for evaluating emission reduction measure
4         cost-effectiveness consistent with subsection (5)(A).
5             (C) Except as provided by subsection (5)(F), and
6         except for installation of CCVs under subsection
7         (4)(B)(ii), IEPA may not award a grant for a proposed
8         emission reduction measure under the Grant Program the
9         cost-effectiveness of which, calculated in accordance
10         with subsections (5)(A) and (B) and criteria developed
11         thereunder, exceeds $135,000 per ton of PM emissions.
12         This subsection does not restrict IEPA authority under
13         other law to require emissions reductions with a
14         cost-effectiveness that exceeds $135,000 per ton.
15             (D) IEPA may not award a grant that provides an
16         amount that exceeds the incremental cost of the
17         proposed emission reduction measure.
18             (E) In determining the amount of a grant under this
19         Act, IEPA shall reduce the incremental cost of a
20         proposed new purchase, retrofit, repower, or add-on
21         equipment emission reduction measure by the value of
22         any existing financial incentive that directly reduces
23         the cost of the proposed measure, including tax credits
24         or deductions, other grants, loans, rebates, or any
25         other public financial assistance.
26             (F) Adjustment of cost-effectiveness. Based upon a

 

 

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1         study of available emissions reduction technologies
2         and costs and after public notice and comment, IEPA may
3         change the values of the maximum grant award criteria
4         established in subsection (5)(C) to account for
5         inflation or to improve the ability of the Grant
6         Program to achieve its goals.
7     (d) Rebate Program. Any Rebate Program established by IEPA
8 pursuant to subsection (b)(1) shall be implemented in
9 accordance with the following provisions:
10         (1) IEPA shall annually allocate at its discretion some
11     or all of the moneys available in the Fund to the Rebate
12     Program. Rebate Program funds not expended in a given year
13     shall be transferred to the Rebate Program or any Grant
14     Program established under subsection (c) for the following
15     year at IEPA's discretion.
16         (2) A retrofit vendor or owner of an eligible vehicle
17     who meets the requirements of this subsection shall be
18     eligible to receive a rebate under the Rebate Program; for
19     purposes of this subsection, "eligible vehicle" shall mean
20     a vehicle that meets the requirements of this subsection
21     and that is described in subsection (c)(4)(B)(i) and also:
22             (A) is described in subsection (c)(2)(A);
23             (B) following 2 years after the effective date of
24         this Funding Program, is described in subsection
25         (c)(2)(B); and
26             (C) following 4 years after the effective date of

 

 

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1         this Funding Program, is described in subsection
2         (c)(2)(C).
3         (3) Moneys from the Fund will be provided in the rebate
4     amount to defray the cost of purchase and installation of
5     retrofitting an eligible vehicle with a Level 3 Control in
6     combination with a CCV.
7         (4) Within 180 days after effective date of this Act,
8     IEPA shall establish the initial rebate amount for
9     retrofits of various types of eligible vehicles. IEPA shall
10     review the appropriateness of the amount no less frequently
11     than annually and may change the rebate amount to improve
12     the ability of the Rebate Program to achieve its goals.
13         (5) In order to receive a rebate, an eligible vehicle
14     owner or retrofit vendor shall:
15             (A) submit to IEPA a completed rebate reservation
16         form including such information IEPA may require with
17         respect to each rebate sought;
18             (B) within 120 days of submission of a rebate
19         reservation form, the owner or vendor shall complete
20         the retrofit pertaining to the rebate reservation
21         form, and shall submit a completed IEPA reimbursement
22         request form including certification of retrofit
23         completion and compliance with all requirements of
24         this subsection and containing such other information
25         and such other conditions as IEPA may require.
26         (6) Rebates shall be provided on a first come, first

 

 

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1     served basis, with priority established based upon the date
2     of IEPA receipt of a completed reservation form pursuant to
3     subsection (5)(A); provided that, if the retrofits are not
4     completed and the reimbursement request form is not
5     submitted to IEPA within the 120 day period as required by
6     subsection (5)(B), then IEPA may reduce the amount of the
7     rebate or take such other action as it has established by
8     regulations promulgated pursuant to this Funding Program.
9         (7) To the extent of available funds allocated to the
10     Rebate Program, IEPA shall pay the owner or vendor the
11     rebate within 60 days of receipt of a timely, complete, and
12     accurate reimbursement form.
13         (8) Owners of eligible vehicles for which rebates are
14     paid must:
15             (A) meet the requirements of subsection (c)(4)(D);
16             (B) fuel the vehicle with ultra low sulfur diesel
17         fuel; and
18             (C) maintain the vehicle and Level 3 Controls
19         according to manufacturer specifications.
20         (9) The retrofit vendor to eligible vehicles for which
21     rebates are provided must honor all warranty provisions
22     according to their verification
23         (10) Persons receiving rebates who fail to meet all
24     requirements of this subsection shall pay a civil penalty
25     to IEPA in the full amount of the rebates, plus interest at
26     a reasonable rate established by IEPA. The proceeds of all

 

 

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1     such penalties shall be deposited in the Fund.
2     (e)Emission Reduction Credits.
3         (1) An emission reduction measure funded under the
4     Funding Program established under this Section may not be
5     used for credit under any State or federal emissions
6     reduction credit averaging, banking, or trading program.
7         (2) An emissions reduction generated by an emission
8     reduction measure funded under the Funding Program
9     established under this Section:
10             (A) may not be used as a marketable emissions
11         reduction credit or to offset any emissions reduction
12         obligation; but
13             (B) may be used to demonstrate conformity with the
14         State implementation plan.
15         (3) An emission reduction measure involving a new
16     measure that would otherwise generate marketable credits
17     under State or federal emissions reduction credit
18     averaging, banking, or trading programs is not eligible for
19     funding under the Funding Program established under this
20     Section unless:
21             (A) the measure includes the transfer of the
22         reductions that would otherwise be marketable credits
23         to the State implementation plan; and
24             (B) the reductions are permanently retired.
25     (f)Funding Program Reports.
26         (1) Not later than December 1, 2008, and not later than

 

 

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1     December 1 of every second year thereafter, IEPA shall
2     publish and submit to the legislature a report of the
3     implementation of the provisions of this Funding Program.
4     IEPA shall provide notice and an opportunity for public
5     comment and public hearing on each draft biennial report
6     and, in producing a final biennial report, shall consider
7     and respond to all significant comments received; the
8     report shall be publicly available, and IEPA shall post it
9     on its website.
10         (2) The report must:
11             (A) include a review of each pollution-reduction
12         measure funded under any Grant Program, the amount
13         granted for the emission reduction measure, the
14         emissions reductions attributable to the emission
15         reduction measure, and the cost-effectiveness of the
16         emission reduction measure; IEPA shall also conduct an
17         annual review of any Rebate Program, including the
18         total rebates paid, the total retrofits installed and
19         the aggregate emission reductions attributable to
20         those retrofits;
21             (B) include a summary of IEPA's Funding Program
22         implementation activities under this Section;
23             (C) account for money received, money disbursed as
24         grants, money reserved for grants based on project
25         approvals, money disbursed as rebates, any recommended
26         transfer of money between allocations, and must

 

 

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1         estimate future demand for grant and rebate funds under
2         the Funding Program;
3             (D) describe the overall effectiveness of the
4         Funding Program in delivering particulate emissions
5         reductions and other emission reductions as
6         co-benefits;
7             (E) evaluate the effectiveness of the Funding
8         Program in soliciting and evaluating project
9         applications, providing awards in a timely manner, and
10         monitoring project implementation;
11             (F) describe adjustments made to project selection
12         criteria and recommend any further needed changes or
13         adjustments to the grant programs, including changes
14         in grant award criteria, administrative procedures, or
15         statutory provisions that would enhance the Funding
16         Program's effectiveness and efficiency;
17             (G) describe any adjustments made to the maximum
18         cost-effectiveness amount and award amount;
19             (H) evaluate the benefits of addressing additional
20         pollutants as part of the Funding Program; and
21             (I) include legislative recommendations necessary
22         to improve the effectiveness of the Funding Program.
 
23     Section 20. Miscellaneous.
24     (a) Equitable Relief Authorized. In addition to other
25 remedies provided in this Funding Program, IEPA may seek

 

 

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1 injunctive relief in any court of competent jurisdiction to
2 enforce any provision of this Funding Program.
3     (b) Severability. If any clause, sentence, paragraph,
4 section or provision of this Funding Program shall be adjudged
5 by any court of competent jurisdiction to be invalid, such
6 judgment shall not affect, impair, or invalidate the remainder
7 of this Funding Program, but shall be confined in its operation
8 to the clause, sentence, paragraph, section, or provision of
9 this Funding Program directly involved in the controversy in
10 which the judgment was rendered.
 
11     Section 90. The Illinois Vehicle Code is amended by adding
12 Section 3-835 as follows:
 
13     (625 ILCS 5/3-835 new)
14     Sec. 3-835. Improvement of Diesel Vehicle Registry.
15     (a) Definitions for the purposes of this Section:
16         (i) "Secretary" means the Office of the Illinois
17     Secretary of State.
18         (ii) "DOT" means the Illinois Department of
19     Transportation.
20         (iii) "IEPA" means the Illinois Environmental
21     Protection Agency.
22         (iv) "Motor vehicle" means any self-propelled vehicle
23     designed for transporting persons or property on a street
24     or highway, including an on-road diesel vehicle.

 

 

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1         (v) "Nonroad vehicle" means a vehicle or equipment that
2     is powered by a nonroad engine, 50 horsepower and greater,
3     and that is not a motor vehicle or a vehicle used solely
4     for competition, which shall include, but not be limited
5     to, excavators, backhoes, cranes, compressors, generators,
6     bulldozers and similar equipment; unless otherwise
7     indicated, nonroad vehicles do not include locomotives or
8     marine vessels.
9     (b) Diesel Motor Vehicle Registration Information. The
10 Secretary shall, in consultation with IEPA, review the
11 information obtained through the registration of diesel motor
12 vehicles. After such review, and no later than March 1, 2008,
13 the Secretary shall require such additional information upon
14 the registration of a diesel motor vehicle that is appropriate
15 to support a reliable and complete inventory of diesel motor
16 vehicles in the State; such information shall include but not
17 be limited to, the type of fuel for which the vehicle is
18 designed, the gross vehicles weight rating, the engine class
19 (including whether the engine is electronically controlled),
20 the use for which the vehicle is designed, and any installed
21 emission controls. The Secretary shall, in consultation with
22 IEPA, provide such information to IEPA in a form that will
23 support a reliable and complete inventory of diesel motor
24 vehicles in the State.
25     (c) Diesel Nonroad Vehicle Registration. The Secretary, in
26 consultation with DOT and IEPA, shall, after written notice and

 

 

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1 public hearing, promulgate regulations by October 1, 2008 to
2 develop a program for registration of diesel nonroad vehicles,
3 locomotives, and diesel marine vessels, and shall implement the
4 program beginning January 1, 2009. Such program shall be
5 designed, among other things, to support a reliable and
6 complete inventory of diesel nonroad vehicles in the State; the
7 information shall include but not be limited to, the type of
8 fuel for which the vehicle is designed, the type of engine
9 (including whether the engine is electronically controlled),
10 the use for which the vehicle is designed, and any installed
11 emission controls.
12     (e) Severability. If any clause, sentence, paragraph, or
13 provision of this Section shall be adjudged by any court of
14 competent jurisdiction to be invalid, such judgment shall not
15 affect, impair, or invalidate the remainder of this Section,
16 but shall be confined in its operation to the clause, sentence,
17 paragraph, section, or provision of this Act directly involved
18 in the controversy in which the judgment was rendered.
 
19     Section 95. The State Finance Act is amended by adding
20 Section 5.675 as follows:
 
21     (30 ILCS 105/5.675 new)
22     Sec. 5.675. The Diesel Emissions Reduction Fund Fund.
 
23     Section 99. Effective date. This Act takes effect upon
24 becoming law.