Illinois General Assembly - Full Text of HB0046
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Full Text of HB0046  93rd General Assembly

HB0046enr 93rd General Assembly


093_HB0046enr

HB0046 Enrolled                      LRB093 02098 SJM 02104 b

 1        AN ACT concerning renewable fuels.

 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 Renewable Fuels Development Program Act.

 6        Section   5.  Findings  and  State  policy.  The  General
 7    Assembly recognizes that agriculture is a vital sector of the
 8    Illinois economy and that an important  growth  industry  for
 9    the   Illinois   agricultural   sector   is  renewable  fuels
10    production.   Renewable   fuels   produced   from    Illinois
11    agricultural  products  hold  great potential for growing the
12    State's economy,  reducing  our  dependence  on  foreign  oil
13    supplies,  and  improving the environment by reducing harmful
14    emissions from vehicles. Illinois  is  the  nation's  leading
15    producer of ethanol, a clean, renewable fuel with significant
16    environmental  benefits.  The  General  Assembly  finds  that
17    reliable  supplies of renewable fuels will be integral to the
18    long term energy security of the United States.  The  General
19    Assembly  declares  that it is the public policy of the State
20    of Illinois to promote and encourage the production  and  use
21    of renewable fuels as a means not only to improve air quality
22    in   the   State  and  the  nation,  but  also  to  grow  the
23    agricultural sector of the Illinois economy. To achieve these
24    public  policy  objectives,  the  General   Assembly   hereby
25    authorizes  the  creation  and implementation of the Illinois
26    Renewable Fuels Development Program within the Department.

27        Section 10.  Definitions. As used in this Act:
28        "Biodiesel" means a renewable diesel  fuel  derived  from
29    biomass that is intended for use in diesel engines.
30        "Biodiesel   blend"  means  a  blend  of  biodiesel  with
 
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 1    petroleum-based diesel fuel in which  the  resultant  product
 2    contains no less than 1% and no more than 99% biodiesel.
 3        "Biomass" means non-fossil organic materials that have an
 4    intrinsic chemical energy content. "Biomass" includes, but is
 5    not  limited  to,  soybean  oil,  other  vegetable  oils, and
 6    ethanol.
 7        "Department"  means  the  Department  of   Commerce   and
 8    Community Affairs.
 9        "Diesel  fuel"  means  any  product  intended  for use or
10    offered for sale as a fuel for engines in which the  fuel  is
11    injected  into the combustion chamber and ignited by pressure
12    without electric spark.
13        "Director" means the Director of Commerce  and  Community
14    Affairs.
15        "Ethanol"  means  a  product  produced  from agricultural
16    commodities or by-products used as a fuel or  to  be  blended
17    with other fuels for use in motor vehicles.
18        "Fuel" means fuel as defined in Section 1.19 of the Motor
19    Fuel Tax Law.
20        "Gasohol"  means  motor  fuel  that  is  no more than 90%
21    gasoline and at least 10% denatured ethanol that contains  no
22    more than 1.25% water by weight.
23        "Gasoline"  means  all  products commonly or commercially
24    known  or  sold  as  gasoline  (including  casing  head   and
25    absorption or natural gasoline).
26        "Illinois  agricultural  product"  means any agricultural
27    commodity grown in Illinois that  is  used  by  a  production
28    facility  to  produce  renewable fuel in Illinois, including,
29    but not limited to, corn, barley, and soy beans.
30        "Labor Organization" means any organization:
31             (1)  in which construction trades, crafts, or  labor
32        employees, or all or any of these participate; and
33             (2)  that represents construction trades, crafts, or
34        labor employees, or any or all of these; and
 
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 1             (3)  that  exists  for  the  purpose, in whole or in
 2        part, of negotiating with the employers  of  construction
 3        trades,  crafts,  or  labor  employees,  or any or all of
 4        these, terms and conditions of employment, including  but
 5        not   limited   to:   wages,   hours  of  work,  overtime
 6        provisions,  fringe  benefits,  and  the  settlement   of
 7        grievances; and
 8             (4)  that   participates   in   apprenticeship   and
 9        training  approved  and registered with the United States
10        Department  of  Labor's  Bureau  of  Apprenticeship   and
11        Training, in the State of Illinois.
12        "Majority  blended  ethanol  fuel"  means motor fuel that
13    contains no less than 70% and  no  more  than  90%  denatured
14    ethanol and no less than 10% and no more than 30% gasoline.
15        "Motor  vehicles"  means motor vehicles as defined in the
16    Illinois Vehicle Code and watercraft propelled by an internal
17    combustion engine.
18        "Owner"  means  any  individual,   sole   proprietorship,
19    limited    partnership,    co-partnership,   joint   venture,
20    corporation, cooperative, or other legal entity that operates
21    or will operate a plant located within the State of Illinois.
22        "Plant" means  a  production  facility  that  produces  a
23    renewable  fuel. "Plant" includes land, any building or other
24    improvement on or to land, and any personal properties deemed
25    necessary  or  suitable  for  use,  whether  or  not  now  in
26    existence,  in  the  processing  of  fuel  from  agricultural
27    commodities or by-products.
28        "Renewable fuel" means ethanol, gasohol, majority blended
29    ethanol fuel, biodiesel blend fuel, and biodiesel.

30        Section 15. Illinois Renewable Fuels Development Program.
31        (a)  The  Department  must  develop  and  administer  the
32    Illinois Renewable Fuels Development Program to assist in the
33    construction, modification, alteration,  or  retrofitting  of
 
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 1    renewable  fuel  plants in Illinois. The recipient of a grant
 2    under this Section must:
 3             (1)  be  constructing,   modifying,   altering,   or
 4        retrofitting a plant in the State of Illinois;
 5             (2)   be   constructing,   modifying,  altering,  or
 6        retrofitting a plant that has annual production  capacity
 7        of  no less than 30,000,000 gallons of renewable fuel per
 8        year; and
 9             (3)  enter  into  a  project  labor   agreement   as
10        prescribed by Section 25 of this Act.
11        (b)  Grant applications must be made on forms provided by
12    and  in  accordance  with  procedures  established   by   the
13    Department.
14        (c)  The  Department  must  give preference to applicants
15    that use Illinois agricultural products in the production  of
16    renewable  fuel  at  the  plant  for which the grant is being
17    requested.

18        Section 20.  Grants. Subject to  appropriation  from  the
19    General  Revenue  Fund,  the  Director is authorized to award
20    grants to eligible applicants. The annual aggregate amount of
21    grants awarded shall not exceed $15,000,000.

22        Section 25. Project labor agreements.
23        (a)  The  project  labor  agreement  must   include   the
24    following:
25             (1)  provisions establishing the minimum hourly wage
26        for each class of labor organization employee;
27             (2) provisions establishing the benefits  and  other
28        compensation   for   each  class  of  labor  organization
29        employee; and
30             (3)  provisions  establishing  that  no  strike   or
31        disputes  will  be  engaged  in by the labor organization
32        employees.
 
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 1    The owner of the plant and the labor organizations shall have
 2    the authority to include other terms and conditions  as  they
 3    deem necessary.
 4        (b)  The  project labor agreement shall be filed with the
 5    Director in accordance with  procedures  established  by  the
 6    Department.  At  a  minimum, the project labor agreement must
 7    provide the names, addresses, and occupations of the owner of
 8    the  plant  and  the  individuals  representing   the   labor
 9    organization  employees  participating  in  the project labor
10    agreement. The agreement must  also  specify  the  terms  and
11    conditions required in subsection (a).

12        Section   30.  Administration  of  the  Act;  rules.  The
13    Department shall administer this  Act  and  shall  adopt  any
14    rules necessary for that purpose.

15        Section  905.  The  Prevailing  Wage  Act  is  amended by
16    changing Sections 2, 3, and 4 as follows:

17        (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
18        Sec. 2.  This Act  applies  to  the  wages  of  laborers,
19    mechanics  and other workers employed in any public works, as
20    hereinafter defined, by any public body and to  anyone  under
21    contracts for public works.
22        As  used  in  this  Act,  unless  the  context  indicates
23    otherwise:
24        "Public  works"  means  all  fixed  works constructed for
25    public use by any public body, other than work done  directly
26    by  any  public  utility  company,  whether or not done under
27    public supervision or direction, or paid  for  wholly  or  in
28    part  out  of public funds.  "Public works" as defined herein
29    includes all projects financed in whole or in part with bonds
30    issued under the Industrial Project Revenue Bond Act (Article
31    11,  Division  74  of  the  Illinois  Municipal  Code),   the
 
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 1    Industrial   Building   Revenue   Bond   Act,   the  Illinois
 2    Development  Finance  Authority  Act,  the  Illinois   Sports
 3    Facilities Authority Act, or the Build Illinois Bond Act, and
 4    all projects financed in whole or in part with loans or other
 5    funds  made  available  pursuant  to  the Build Illinois Act.
 6    "Public works" also includes all projects financed  in  whole
 7    or  in  part  with  funds from the Department of Commerce and
 8    Community  Affairs  under  the   Illinois   Renewable   Fuels
 9    Development  Program  Act for which there is no project labor
10    agreement.
11        "Construction" means all work on public  works  involving
12    laborers, workers or mechanics.
13        "Locality"  means the county where the physical work upon
14    public works is performed, except (1) that if  there  is  not
15    available  in  the  county  a  sufficient number of competent
16    skilled laborers, workers  and  mechanics  to  construct  the
17    public  works  efficiently  and properly, "locality" includes
18    any other county  nearest  the  one  in  which  the  work  or
19    construction  is  to be performed and from which such persons
20    may be obtained in sufficient numbers to perform the work and
21    (2) that, with respect to contracts for highway work with the
22    Department of Transportation of this State, "locality" may at
23    the  discretion  of  the  Secretary  of  the  Department   of
24    Transportation  be  construed to include two or more adjacent
25    counties from which workers may be  accessible  for  work  on
26    such construction.
27        "Public  body"  means  the State or any officer, board or
28    commission of the  State  or  any  political  subdivision  or
29    department  thereof, or any institution supported in whole or
30    in part by public  funds,  authorized  by  law  to  construct
31    public   works   or  to  enter  into  any  contract  for  the
32    construction of public  works,  and  includes  every  county,
33    city,  town,  village, township, school district, irrigation,
34    utility, reclamation improvement or other district and  every
 
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 1    other  political subdivision, district or municipality of the
 2    state whether such  political  subdivision,  municipality  or
 3    district operates under a special charter or not.
 4        The  terms  "general  prevailing  rate  of hourly wages",
 5    "general prevailing rate of wages"  or  "prevailing  rate  of
 6    wages"  when used in this Act mean the hourly cash wages plus
 7    fringe benefits  for  training  and  apprenticeship  programs
 8    approved   by   the  U.S.  Department  of  Labor,  Bureau  of
 9    Apprenticeship and Training, health and  welfare,  insurance,
10    vacations  and  pensions  paid  generally, in the locality in
11    which the work is being performed, to  employees  engaged  in
12    work of a similar character on public works.
13    (Source: P.A.  91-105,  eff.  1-1-00;  91-935,  eff.  6-1-01;
14    92-16, eff. 6-28-01.)

15        (820 ILCS 130/3) (from Ch. 48, par. 39s-3)
16        Sec.  3.   Not  less  than the general prevailing rate of
17    hourly wages for work of a similar character on public  works
18    in  the locality in which the work is performed, and not less
19    than the general prevailing rate of hourly  wages  for  legal
20    holiday  and  overtime  work,  shall be paid to all laborers,
21    workers and mechanics employed by or on behalf of any  public
22    body  engaged  in the construction of public works. Only such
23    laborers, workers and mechanics as are directly  employed  by
24    contractors  or subcontractors in actual construction work on
25    the site of the building or construction job,  and  laborers,
26    workers  and  mechanics  engaged  in  the  transportation  of
27    materials  and  equipment  to  or  from  the  site,  but  not
28    including  the transportation by the sellers and suppliers or
29    the manufacture or processing of materials or  equipment,  in
30    the  execution  of any contract or contracts for public works
31    with any public body shall be  deemed  to  be  employed  upon
32    public works. The wage for a tradesman performing maintenance
33    is equivalent to that of a tradesman engaged in construction.
 
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 1    (Source: P.A. 83-443.)

 2        (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
 3        Sec.  4. The public body awarding any contract for public
 4    work  or  otherwise  undertaking  any  public  works,   shall
 5    ascertain  the general prevailing rate of hourly wages in the
 6    locality in which the work is to be performed, for each craft
 7    or type of worker or mechanic needed to execute the contract,
 8    and where the public body performs the work without letting a
 9    contract therefor, shall ascertain  the  prevailing  rate  of
10    wages  on  a  per hour basis in the locality, and such public
11    body shall specify in the resolution or ordinance and in  the
12    call  for  bids for the contract, that the general prevailing
13    rate of wages in the locality  for  each  craft  or  type  of
14    worker  or mechanic needed to execute the contract or perform
15    such work, also the general prevailing rate for legal holiday
16    and overtime work, as ascertained by the public  body  or  by
17    the  Department of Labor shall be paid for each craft or type
18    of worker needed to execute the contract or to  perform  such
19    work,  and  it shall be mandatory upon the contractor to whom
20    the contract is awarded and upon any subcontractor under him,
21    and where the public body performs the work, upon the  public
22    body,  to  pay  not  less  than  the  specified  rates to all
23    laborers, workers and  mechanics  employed  by  them  in  the
24    execution  of  the  contract or such work; provided, however,
25    that if the public body desires that the Department of  Labor
26    ascertain  the  prevailing rate of wages, it shall notify the
27    Department of Labor to ascertain the general prevailing  rate
28    of  hourly  wages  for  work  under  contract,  or  for  work
29    performed  by  a  public  body  without letting a contract as
30    required  in  the  locality  in  which  the  work  is  to  be
31    performed, for each craft  or  type  of  worker  or  mechanic
32    needed  to  execute  the  contract  or  project or work to be
33    performed. Upon such notification  the  Department  of  Labor
 
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 1    shall  ascertain  such  general prevailing rate of wages, and
 2    certify the prevailing wage to such public body.  The  public
 3    body  awarding the contract shall cause to be inserted in the
 4    contract a stipulation to the effect that not less  than  the
 5    prevailing  rate  of  wages  as  found  by the public body or
 6    Department of Labor or determined  by  the  court  on  review
 7    shall   be  paid  to  all  laborers,  workers  and  mechanics
 8    performing work under the contract. It shall also require  in
 9    all  such contractor's bonds that the contractor include such
10    provision as will guarantee the faithful performance of  such
11    prevailing  wage  clause  as  provided  by contract.  All bid
12    specifications  shall  list  the  specified  rates   to   all
13    laborers,  workers  and  mechanics  in  the locality for each
14    craft or type of worker or mechanic  needed  to  execute  the
15    contract.   If the Department of Labor revises the prevailing
16    rate of hourly wages to be  paid  by  the  public  body,  the
17    revised  rate  shall  apply  to such contract, and the public
18    body shall be responsible to notify the contractor  and  each
19    subcontractor, of the revised rate. Two or more investigatory
20    hearings  under  this  Section on the issue of establishing a
21    new prevailing wage classification for a particular craft  or
22    type  of  worker  shall  be  consolidated in a single hearing
23    before  the  Department.   Such  consolidation  shall   occur
24    whether each separate investigatory hearing is conducted by a
25    public  body  or  the  Department.  The  party  requesting  a
26    consolidated  investigatory  hearing shall have the burden of
27    establishing  that  there  is  no  existing  prevailing  wage
28    classification for the particular craft or type of worker  in
29    any of the localities under consideration.
30        It shall be mandatory upon the contractor or construction
31    manager  to  whom  a  contract for public works is awarded to
32    post, at a location on the project site of the  public  works
33    that  is  easily  accessible  to  the  workers engaged on the
34    project, the prevailing wage rates for each craft or type  of
 
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 1    worker  or mechanic needed to execute the contract or project
 2    or work to be performed. A failure to post a prevailing  wage
 3    rate as required by this Section is a violation of this Act.
 4    (Source: P.A. 92-783, eff. 8-6-02.)

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