SB0134 93rd General Assembly


                                     LRB093 05260 LCB 05348 b

 1        AN ACT concerning biodiesel fuel.

 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    Biodiesel Fuel Act.

 6        Section 5.  Definitions. As used in this Act:
 7        "Biodiesel  fuel"  means a renewable, biodegradable, mono
 8    alkyl ester combustible liquid fuel derived from agricultural
 9    plant oils or animal fats and that meets American Society For
10    Testing and Materials Specification  D6751-02  for  Biodiesel
11    Fuel (B100) Blend Stock for Distillate Fuels.
12        "Department" means the Department of Agriculture.
13        "Director" means the Director of Agriculture.

14        Section   10.  Minimum   content.   Except  as  otherwise
15    provided in this Section, all diesel fuel sold or offered for
16    sale in this State for use  in  internal  combustion  engines
17    must  contain  at  least  2%  biodiesel  fuel  oil  by volume
18    provided that 30 or more days have passed since the  Director
19    has  published  notice that the annual capacity in this State
20    for the production of biodiesel fuel  oil  exceeds  8,000,000
21    gallons and:
22        (a)  18   months  have  passed  since  the  Director  has
23    published notice that a federal action on taxes imposed,  tax
24    credits,  or otherwise, creates a reduction in the price of 2
25    cents or more per gallon on taxable  fuel  that  contains  at
26    least 2% biodiesel fuel oil and is sold in this State; or
27        (b)  the date June 30, 2006 has passed.

28        Section 15.  Exceptions.
29        (a)  The minimum content requirement of subsection (a) of
                            -2-      LRB093 05260 LCB 05348 b
 1    Section  10  does not apply to fuel used in motors located at
 2    an  electric  generating  plant  regulated  by  the   Nuclear
 3    Regulatory Commission and in railroad locomotives.
 4        (b)  The  exemption concerning electric generating plants
 5    regulated by the Nuclear  Regulatory  Commission  expires  30
 6    days after the Nuclear Regulatory Commission has approved the
 7    use of biodiesel fuel in motors at electric generating plants
 8    under its regulation.

 9        Section 20.  Distributor expense reimbursement.
10        (a)  A   distributor   that   made  capital  expenditures
11    necessary to adapt or add equipment to blend  biodiesel  fuel
12    oil  may  be  eligible  for  partial  reimbursement for those
13    expenditures if this Act is repealed or amended to remove the
14    biodiesel fuel requirement in Section 10 within  8  years  of
15    the effective date of this Act.
16        (b)  A  distributor  may  apply  to  the Department for a
17    reimbursement from money appropriated for complying with this
18    Act, if this  Act  or  the  biodiesel  fuel  requirements  in
19    Section  10 are repealed. If the repeal occurs within 2 years
20    of this Act's effective date, the Director shall reimburse up
21    to 80% of expenditures.  The  total  amount  eligible  to  be
22    reimbursed shall decline by 10% each year after the effective
23    date of this Act and must end at 20% in the eighth year.
24        (c)  The   Director   shall  require  detailed  proof  of
25    expenditures made solely to comply with this Act.