Full Text of SB1556 103rd General Assembly
SB1556sam001 103RD GENERAL ASSEMBLY | Sen. David Koehler Filed: 1/19/2024 | | 10300SB1556sam001 | | LRB103 26950 JDS 68557 a |
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| 1 | | AMENDMENT TO SENATE BILL 1556
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1556 by replacing | 3 | | everything after the enacting clause with the following: | 4 | | "Section 1. Short title. This Act may be cited as the Clean | 5 | | Transportation Standard Act. | 6 | | Section 5. Findings. The General Assembly finds that: | 7 | | (1) The transportation sector in this State is a | 8 | | leading source of criteria air pollutants and greenhouse | 9 | | gas emissions, which collectively endanger public health | 10 | | and welfare by causing and contributing to increased air | 11 | | pollution and climate change. | 12 | | (2) Shifting from petroleum-based transportation fuels | 13 | | to alternative fuels has the potential to significantly | 14 | | reduce transportation emissions of air pollutants and | 15 | | greenhouse gases and is recommended by the |
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| 1 | | Intergovernmental Panel on Climate Change as an important | 2 | | pathway for holding global warming at 1.5 degrees Celsius. | 3 | | A clean transportation standard would promote innovation | 4 | | in and production and use of nonpetroleum fuels that | 5 | | reduce vehicle-related and fuel-related air pollution that | 6 | | endangers public health and welfare and disproportionately | 7 | | impacts disadvantaged communities. | 8 | | (3) Credits generated through the use of clean fuel | 9 | | under this Act will promote innovation and investment in | 10 | | clean fuels. | 11 | | Section 10. Definitions. As used in this Act: | 12 | | "Agency" means the Environmental Protection Agency. | 13 | | "Aggregator" or "credit aggregator" means a person who | 14 | | registers to participate in the clean transportation standard | 15 | | program on behalf of one or more credit generators to | 16 | | facilitate credit generation and to trade credits. | 17 | | "Aviation fuel" means a fuel suitably blended to be used | 18 | | in aviation engines. | 19 | | "Backstop aggregator" means a qualified nonprofit entity | 20 | | approved by the Agency to aggregate credits for electricity | 21 | | used as a transportation fuel when those credits would not | 22 | | otherwise be generated. | 23 | | "Board" means the Pollution Control Board. | 24 | | "Carbon intensity" means the amount of lifecycle | 25 | | greenhouse gas emissions per unit expressed in grams of carbon |
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| 1 | | dioxide equivalent per megajoule. | 2 | | "Clean fuel" means a transportation fuel that is | 3 | | domestically produced and has a carbon intensity below the | 4 | | clean transportation standard carbon intensity standard in a | 5 | | given year. | 6 | | "Clean transportation standard" means the standard adopted | 7 | | by the Board under Section 15 for the reduction, on average, of | 8 | | lifecycle carbon intensity of fuels used for on-road | 9 | | transportation. If there is an industry-accepted standard for | 10 | | calculating the carbon intensity of different modes of | 11 | | transportation, such as off-road, light rail, and other forms | 12 | | of mass transportation, the Board shall adopt that standard. | 13 | | "Consumer Price Index for All Urban Consumers" means a | 14 | | measure that examines the changes in the price of a basket of | 15 | | goods and services purchased by urban consumers, and is | 16 | | published by the U.S. Bureau of Labor Statistics. | 17 | | "Credit" means a unit of measure generated when clean fuel | 18 | | is produced, imported, or dispensed for use in this State, | 19 | | such that one credit is equal to one metric ton of carbon | 20 | | dioxide equivalent. | 21 | | "Credit generator" means a fuel reporting entity that | 22 | | generates a credit in the clean transportation standard. | 23 | | "Deficit" means a measure of the degree to which the | 24 | | carbon intensity of a fuel provider's transportation fuel | 25 | | volume produced or imported for use in this State exceeds the | 26 | | carbon intensity of the applicable annual clean transportation |
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| 1 | | standard, expressed in metric tons of carbon dioxide | 2 | | equivalent. | 3 | | "Deficit generator" means a fuel reporting entity that | 4 | | generates a deficit in the clean transportation standard. | 5 | | "Fuel" means a transportation fuel that is used directly | 6 | | in a vehicle for transportation purposes without requiring | 7 | | additional chemical or physical processing. | 8 | | "Fuel pathway" means a detailed description of all stages | 9 | | of a transportation fuel's production and use, including | 10 | | feedstock growth, extraction, processing, transportation, | 11 | | distribution, and combustion or use by an end user. | 12 | | "Lifecycle carbon intensity" means the quantity of | 13 | | greenhouse gas emissions per unit of energy, expressed in | 14 | | carbon dioxide equivalent per megajoule, emitted by the fuel, | 15 | | including both direct and indirect sources, as calculated | 16 | | annually by the Agency under subsection (b) of Section 20 | 17 | | using the methods described under Section 30. | 18 | | "Military tactical vehicle" means a motor vehicle owned by | 19 | | the U.S. Department of Defense or the U.S. military services | 20 | | and used in combat, combat support, combat service support, | 21 | | tactical or relief operations, or training for such | 22 | | operations. | 23 | | "Petroleum-only portion" means the component of gasoline | 24 | | or diesel fuel before blending with ethanol, biodiesel, | 25 | | biofuel, or other low-carbon-intensity fuel. | 26 | | "Producer" means: |
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| 1 | | (1) with respect to any liquid fuel, hydrogen fuel, | 2 | | and renewable propane, the person who makes the fuel; | 3 | | (2) with respect to any biomethane, the person who | 4 | | refines, treats, or otherwise processes biogas into | 5 | | biomethane; | 6 | | (3) with respect to electricity, the person who is the | 7 | | direct provider of electricity; or | 8 | | (4) with respect to other types of fuel, a person | 9 | | deemed appropriate by the Agency. | 10 | | "Provider" includes, but is not limited to, a refiner, | 11 | | producer, or importer of a transportation fuel and a direct | 12 | | provider of electricity being used as a fuel source for | 13 | | transportation, including, but not limited to, electric | 14 | | vehicle charging service providers, electric utilities, and | 15 | | electric vehicle fleet operators. For the purposes of the | 16 | | clean transportation standard, "provider" does not include the | 17 | | owner or operator of a residential charging station or the | 18 | | owner or operator of a commercial property with on-site | 19 | | charging stations independent of the primary function of the | 20 | | business. | 21 | | "Regulated entity" means any entity, whether a credit | 22 | | generator or deficit generator, that has registered, on a | 23 | | mandatory or permissive basis, to participate in the clean | 24 | | transportation standard. | 25 | | "Sustainable aviation fuel" means an aviation fuel with a | 26 | | carbon intensity sufficient to generate credits under the |
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| 1 | | clean transportation standard upon its production or supply. | 2 | | "Tactical support equipment" means equipment using a | 3 | | portable engine, including turbines, that meets military | 4 | | specifications, is owned by the U.S. Department of Defense or | 5 | | the U.S. military services or its allies, and is used in | 6 | | combat, combat support, combat service support, tactical or | 7 | | relief operations, or training for such operations. "Tactical | 8 | | support equipment" includes, but is not limited to, engines | 9 | | associated with portable generators, aircraft start carts, | 10 | | heaters and lighting carts. | 11 | | Section 15. Rulemaking and baseline calculations for clean | 12 | | transportation standard. | 13 | | (a) To the extent allowed by federal law, within 24 months | 14 | | after the effective date of this Act, the Agency shall propose | 15 | | and the Board shall adopt rules establishing a clean | 16 | | transportation standard in order to reduce, within 10 years of | 17 | | the adoption of the Agency's rules by the Board, the lifecycle | 18 | | carbon intensity of fuels for the ground transportation sector | 19 | | by 20% below the 2019 baseline level as calculated under this | 20 | | Section. The rules proposed and adopted shall be subject to | 21 | | public notice and comment under the Illinois Administrative | 22 | | Procedure Act. The Board may recommend to the General Assembly | 23 | | reductions to the clean transportation standard below those | 24 | | adopted in accordance with this Act, using factors, including, | 25 | | but not limited to, advances in clean fuel technology. The |
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| 1 | | rules adopted by the Board under this Section shall include | 2 | | fees for the registration of providers to offset the costs | 3 | | incurred by the Board and the Agency that are associated with | 4 | | implementing the clean transportation standard. These fees | 5 | | shall be used only in connection with the administration of | 6 | | the program and may be levied differently based on whether a | 7 | | registered entity is a credit generator or deficit generator. | 8 | | Except where otherwise provided in this Act, the Agency shall | 9 | | consider rules that are harmonized, to the extent practicable, | 10 | | with the regulatory standards, exemptions, reporting | 11 | | obligations, and other clean transportation standard | 12 | | compliance requirements and methods for credit generation of | 13 | | other states that have adopted low-carbon fuel standards or | 14 | | similar greenhouse gas emissions requirements applicable | 15 | | specifically to transportation fuels. | 16 | | (b) The Agency shall calculate the baseline carbon | 17 | | intensities of the petroleum-only portion of all | 18 | | transportation fuels produced or imported in 2019 for use in | 19 | | this State by: | 20 | | (1) reviewing and considering the best available | 21 | | applicable scientific data and calculations; and | 22 | | (2) using a lifecycle emissions, performance-based | 23 | | approach that is technology-and-feedstock neutral. | 24 | | Section 20. Contents of clean transportation standard. The | 25 | | clean transportation standard adopted by the Board, by rule, |
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| 1 | | shall: | 2 | | (1) apply to all providers in the State; | 3 | | (2) be measured based on a lifecycle carbon intensity | 4 | | that shall be calculated annually by the Agency in | 5 | | accordance with Section 30; | 6 | | (3) recognize voluntary farm emissions reductions that | 7 | | contribute to the reduced carbon intensity of fuels by | 8 | | allowing credit generators to use individualized | 9 | | farm-level carbon intensity scoring for approved | 10 | | sustainable agricultural practices. The Agency shall, for | 11 | | the purposes of determining individualized farm-level | 12 | | carbon intensity scoring, use the GREET model's Feedstock | 13 | | Carbon Intensity Calculator (FD-CIC); | 14 | | (4) take into consideration the low-carbon clean | 15 | | transportation standards that are pending or have been | 16 | | adopted in other states; | 17 | | (5) include a credit price cap to be determined by the | 18 | | Agency and confirmed by the Board to contain costs if the | 19 | | fuel supply forecasts determine that not enough credits | 20 | | will be available. The price cap shall be adjusted | 21 | | annually by the rate of inflation as measured by the most | 22 | | recently available 12 months of the Consumer Price index | 23 | | for All Urban Consumers. The price cap shall be published | 24 | | on the first Monday of a month to be determined by the | 25 | | Agency, and the cap shall go into effect the first Monday | 26 | | of the second successive month following publication; |
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| 1 | | (6) contain a structure for compliance that conforms | 2 | | with the marketplace system described in Section 25, | 3 | | including, but not limited to, details, such as: | 4 | | (A) methods for assigning compliance obligations | 5 | | and methods for tracking tradable credits; | 6 | | (B) mechanisms that allow credits to be traded, | 7 | | transferred, sold, and banked for future compliance | 8 | | periods; | 9 | | (C) mechanisms that provide for the creation of a | 10 | | list of accepted credit transactions and a list of | 11 | | prohibited forms of credit transactions, which may | 12 | | include trades involving, related to, or associated | 13 | | with any of the following: | 14 | | (i) any manipulative or deceptive device; | 15 | | (ii) a corner or an attempt to corner the | 16 | | market for credits; | 17 | | (iii) fraud or an attempt to defraud any other | 18 | | entity; | 19 | | (iv) false, misleading, or inaccurate reports | 20 | | concerning information or conditions that affect | 21 | | or tend to affect the price of a credit; and | 22 | | (v) applications, reports, statements, or | 23 | | documents required to be filed under this Act that | 24 | | are false or misleading with respect to a material | 25 | | fact or that omit a material fact necessary to | 26 | | make the contents therein not misleading; |
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| 1 | | (C) procedures for verifying the validity of | 2 | | credits and deficits generated under the clean | 3 | | transportation standard; | 4 | | (D) mechanisms by which persons associated with | 5 | | the supply chains of transportation fuels that are | 6 | | used for purposes that are exempt from the clean | 7 | | transportation standard described in Section 40 and | 8 | | persons that are associated with the supply chains of | 9 | | transportation fuels and will generate credits may | 10 | | register with the Agency to participate in the clean | 11 | | transportation standard program; and | 12 | | (E) an administrative procedure by which a | 13 | | regulated entity may contest the Board's or Agency's | 14 | | calculation prior to the levying of a penalty for | 15 | | failure to remedy a given deficit; | 16 | | (F) procedures that will allow the Agency to | 17 | | cancel or reverse (i) a credit transfer that is | 18 | | determined to be a prohibited transaction under items | 19 | | (i) through (v) of subparagraph (B) or (ii) any other | 20 | | prohibited transaction as determined by the Board in | 21 | | rulemaking; | 22 | | (7) contain a program review procedure whereby the | 23 | | Board or Agency shall solicit feedback from and annually | 24 | | consult with representatives from stakeholder groups, | 25 | | including representatives from the fuel production | 26 | | industry, the transportation industry, the agricultural |
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| 1 | | industry, environmental advocacy organizations, labor | 2 | | organizations, representatives from impacted | 3 | | environmental justice communities, as defined in Section | 4 | | 801-10 of the Illinois Finance Authority Act, and | 5 | | representatives from related State agencies; the substance | 6 | | of the annual consultations shall include, but may not | 7 | | limited to, a review of the economic impact of the clean | 8 | | transportation standard, whether the clean transportation | 9 | | standard is adhering to the established carbon intensity | 10 | | reduction goals, the health impact of the emissions | 11 | | reductions on disadvantaged communities, and whether | 12 | | access to transportation has been affected as a result of | 13 | | the implementation of the clean transportation standard; | 14 | | (8) include annual carbon intensity reduction | 15 | | standards that are to be met by regulated entities and | 16 | | that result in the attainment of carbon intensity | 17 | | reduction targets set by the Board; | 18 | | (9) maximize benefits to the environment and natural | 19 | | resources and develop safeguards and incentives to protect | 20 | | natural lands and enhance environmental integrity, | 21 | | including biodiversity; | 22 | | (10) aim to support, through credit generation or | 23 | | other financial means, voluntary farmer-led efforts to | 24 | | adopt agricultural practices that benefit soil health and | 25 | | water quality; | 26 | | (11) support equitable transportation electrification |
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| 1 | | that benefits all communities and is powered primarily | 2 | | with low-carbon and carbon-free electricity; | 3 | | (12) seek to improve air quality and public health, | 4 | | targeting communities that bear a disproportionate health | 5 | | burden from transportation pollution; | 6 | | (13) establish, in consultation with the Department of | 7 | | Agriculture and the Department of Transportation, a | 8 | | procedure for determining fuel pathways that: | 9 | | (A) is consistent for all fuel types; | 10 | | (B) is based on science and engineering; | 11 | | (C) reflects differences in vehicle fuel | 12 | | efficiency and drivetrains; and | 13 | | (D) accounts for any on-site additional energy use | 14 | | by a carbon capture technology employed in the fuel | 15 | | production process, including, but not limited to, | 16 | | generation, distillation, and compression; | 17 | | (14) recognize that farmers who can demonstrate use of | 18 | | production methods that lower the carbon intensity of | 19 | | their commodities shall be compensated a fair market value | 20 | | that is, at minimum, commensurate with costs associated | 21 | | with those low-carbon production methods or shall be | 22 | | provided a fair share of the increased market value of the | 23 | | end-use product that their commodity is used to produce. | 24 | | Compensation may come in a variety of forms, including, | 25 | | but not limited to, practice-based incentive payments, | 26 | | outcome-based incentive payments, price premiums, or other |
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| 1 | | forms of payment. The Agency shall also protect farm data | 2 | | by ensuring farmer ownership of data for a specific amount | 3 | | of time or negotiated on an annual basis; | 4 | | (15) contain mechanisms to excuse excess emissions | 5 | | from enforcement action if such excess emissions are | 6 | | unavoidable. The rules shall specify the criteria and | 7 | | procedures for the Agency to determine whether a period of | 8 | | excess emissions is excusable; | 9 | | (16) include mechanisms by which producers who would | 10 | | be eligible to generate credits from electricity used as | 11 | | transportation fuel may assign their right to generate | 12 | | credits to an aggregator, and include mechanisms by which | 13 | | a backstop aggregator may register with the program to | 14 | | generate credits if an electric utility opts out of the | 15 | | program; and | 16 | | (17) provide indirect accounting mechanisms such as | 17 | | book-and-claim or mass-balancing for clean fuels entering | 18 | | fungible supply systems that can access this State. | 19 | | Section 25. Credit market; verification and data privacy; | 20 | | compliance and penalties. | 21 | | (a) The clean transportation standard adopted by the Board | 22 | | shall take the form of a credit marketplace with the following | 23 | | structure. The marketplace shall consist of a system of | 24 | | credits and deficits monitored by the Agency. The Agency shall | 25 | | compile a list of fuel pathways that producers and providers |
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| 1 | | may use to generate credits. Producers and providers seeking | 2 | | to be credit generators must register with the Agency and | 3 | | attest to the transportation fuels they produce, import, or | 4 | | dispense in the State in order to qualify to generate credits. | 5 | | Each producer or importer of any amount of a transportation | 6 | | fuel that is ineligible to generate credits consistent with | 7 | | the requirements of this Act must register and comply with the | 8 | | program. Fuels that are registered with the program must have | 9 | | a dedicated, verifiable fuel pathway with a carbon intensity | 10 | | score measurable by software described in Section 30 and | 11 | | assigned a unique identifier by the Agency. Providers reaching | 12 | | or exceeding the required reduction of lifecycle carbon | 13 | | intensity under the clean transportation standard shall | 14 | | receive credits from the Agency upon verification described in | 15 | | subsection (b) at the end of a reoccurring reporting period as | 16 | | determined by the Agency. Fuel providers that are deficit | 17 | | generators during a year shall eliminate the deficit by either | 18 | | producing or importing transportation fuels whose carbon | 19 | | intensity is at or below the level of that year's annual clean | 20 | | transportation standard or by purchasing credits to offset the | 21 | | deficit. The system of credits created under this subsection | 22 | | shall provide credits based on a lifecycle emissions | 23 | | performance-based approach that is technology neutral, | 24 | | feedstock neutral, and has the purpose of achieving fuel | 25 | | decarbonization. | 26 | | (b) The Agency must, in collaboration with the Department |
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| 1 | | of Agriculture and the Department of Transportation, establish | 2 | | acceptable methods to verify that the transportation fuel used | 3 | | by regulated entities has been produced or imported following | 4 | | the pathway bearing the unique identifier as attested by the | 5 | | regulated entity. The Agency is authorized to contract with | 6 | | third party verifiers to accomplish this requirement. Upon | 7 | | registering with the program, regulated entities must agree to | 8 | | provide data related to the registered fuel pathway used to | 9 | | generate credits or deficits with the Agency as required to | 10 | | administer the program. Upon registering with the program, | 11 | | regulated entities must agree to be subject to periodic audits | 12 | | as determined by the Agency. | 13 | | All information gathered by or provided to the Agency or | 14 | | contractors of the Agency, either by regulated entities, | 15 | | agents of regulated entities, or growers of feedstock used in | 16 | | a registered fuel pathway by regulated entities, through | 17 | | either voluntary disclosure or audit, must not be shared by | 18 | | the Agency with any party except in relation to the | 19 | | administration of the clean transportation standard absent | 20 | | written consent by the regulated entity and the entity from | 21 | | which the data was gathered. This data must not be used for any | 22 | | purpose outside of the administration and enforcement of the | 23 | | clean transportation standard except by written consent from | 24 | | the original data holder. Ownership of all data shared or | 25 | | collected by the Agency for the administration and enforcement | 26 | | of the clean transportation standard is retained with the |
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| 1 | | entity from which the data originates. Data protected under | 2 | | this subparagraph does not include a regulated entity's credit | 3 | | or deficit balance, which may be publicly disclosed by the | 4 | | Agency. | 5 | | (c) Deficit generators who fail to offset their deficits | 6 | | at the conclusion of any compliance period administered by the | 7 | | Agency shall be subject to a civil penalty established by the | 8 | | Agency subject to the following limitations: | 9 | | (1) the value of the penalty shall correspond to the | 10 | | amount of deficits attributed to a given regulated entity | 11 | | at the time the transaction has completed; and | 12 | | (2) for every one deficit the regulated entity fails | 13 | | to offset, the penalty for failure to offset that deficit | 14 | | shall not exceed 10 times the value of the credit needed to | 15 | | offset the deficit. | 16 | | (d) Regulated entities that submit false information in | 17 | | support of an application to register for the clean | 18 | | transportation standard, that share false information during | 19 | | an audit or in support of an attestation, or that otherwise | 20 | | share false or inaccurate information to the Agency or a | 21 | | contractor working under the direction of the Agency shall be | 22 | | subject to penalties to be determined by the Agency by rule. | 23 | | Penalties under this paragraph may include monetary penalties, | 24 | | forfeiture of credits, and reversals of prohibited | 25 | | transactions as described in subparagraph (B) of paragraph (6) | 26 | | of Section 20. The Agency may waive penalties under this |
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| 1 | | subparagraph. If the violator under this subsection is a | 2 | | credit generator, following 3 violations, the Agency may | 3 | | remove the violating credit generator from the clean | 4 | | transportation standard. In determining whether penalties | 5 | | should be applied and, if a penalty is to be applied, the | 6 | | amount of penalties to be levied for violations under this | 7 | | subparagraph, the Agency shall consider: | 8 | | (1) evidence of willfulness by the regulated entity to | 9 | | submit false information; | 10 | | (2) the scope of the false information; | 11 | | (3) evidence of past submissions of false information; | 12 | | and | 13 | | (4) efforts undertaken by the regulated entity to | 14 | | remedy the false submission. | 15 | | (e) The penalties provided for in this Section may be | 16 | | recovered in a civil action brought in the name of the people | 17 | | of the State of Illinois by the State's Attorney of the county | 18 | | in which the violation occurred or by the Attorney General. | 19 | | Any penalties collected under this Section in an action in | 20 | | which the Attorney General has prevailed shall be used to | 21 | | offset registration fees in support of the administration of | 22 | | the clean transportation standard program. Any amount of | 23 | | penalties collected in addition to the amount needed to | 24 | | administer the clean transportation standard program shall be | 25 | | deposited in the Environmental Protection Trust Fund, to be | 26 | | used in accordance with the provisions of the Environmental |
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| 1 | | Protection Trust Fund Act. | 2 | | (f) The Attorney General or the State's Attorney of a | 3 | | county in which a violation occurs may institute a civil | 4 | | action for an injunction, prohibitory or mandatory, to | 5 | | restrain violations of this Act or to require such actions as | 6 | | may be necessary to address violations of this Act. | 7 | | (g) The penalties and injunctions provided in this Act are | 8 | | in addition to any penalties, injunctions, or other relief | 9 | | provided under any other law. Nothing in this Act bars an | 10 | | action by the State for any other penalty, injunction, or | 11 | | other relief provided by any other law. | 12 | | Section 30. Lifecycle carbon intensity calculations; | 13 | | software. The lifecycle carbon intensity calculation conducted | 14 | | by the Agency under paragraph (2) of Section 20 shall use the | 15 | | Argonne National Laboratory's GREET model and shall include | 16 | | all stages of fuel and feedstock production and distribution, | 17 | | from feedstock generation or extraction through the | 18 | | distribution, delivery, and use of the finished fuel by the | 19 | | ultimate consumer. The Agency shall, as needed and | 20 | | periodically as established by rule, use as up-to-date a model | 21 | | as possible, taking into account staffing and hiring needs. In | 22 | | calculating the lifecycle carbon intensity, the mass values | 23 | | for all greenhouse gases that are not carbon dioxide must be | 24 | | adjusted to account for each of their relative global warming | 25 | | potentials. This adjustment shall be performed using the |
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| 1 | | global warming potential deemed most accurate by the Agency | 2 | | for each greenhouse gas for the period during which reductions | 3 | | in greenhouse gas emissions are to be attained under the clean | 4 | | transportation standard. When measuring the carbon intensity | 5 | | of biofuels, the Agency shall use the GREET model's Feedstock | 6 | | Carbon Intensity Calculator (FD-CIC) for the purposes of | 7 | | accounting for variations in farming practices across | 8 | | different fuel pathways. | 9 | | Section 35. Investments by backstop aggregators and | 10 | | utilities. In implementing this Act, the Agency and Board are | 11 | | empowered to, and shall consider establishing, rules under the | 12 | | standard to support transportation electrification investments | 13 | | in disadvantaged communities. Those rules may direct | 14 | | participating utilities and backstop aggregators under the | 15 | | standard to allocate revenue earned from trading credits, or a | 16 | | fraction thereof, toward those investments. The Agency and | 17 | | Board shall determine projects and goals under this Act in | 18 | | consultation with relevant stakeholders, including, but not | 19 | | limited to, credit generators, affected communities, and | 20 | | environmental justice advocacy organizations. | 21 | | Section 40. Exemptions. The following fuels are exempt | 22 | | from the clean transportation standard established in Section | 23 | | 15: | 24 | | (1) aviation fuels; |
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| 1 | | (2) transportation fuel used in locomotives; | 2 | | (3) transportation fuel used in ocean-going vessels; | 3 | | and | 4 | | (4) fuel used in military tactical vehicles and | 5 | | tactical support equipment owned by the U.S. Department of | 6 | | Defense or the U.S. military services. | 7 | | However, producers, providers, and suppliers of these fuels, | 8 | | if deemed to be clean fuels, shall be eligible under the rules | 9 | | adopted pursuant to this Act to receive credits on an opt-in | 10 | | basis that may be applied to future obligations or sold to | 11 | | deficit generators. | 12 | | Section 45. Agency reporting obligation. Within 12 months | 13 | | after the Board adopts the rules proposed by the Agency under | 14 | | Section 15, the Agency shall submit a report to the General | 15 | | Assembly detailing the implementation of the clean | 16 | | transportation standard, the reductions in greenhouse gas | 17 | | emissions that have been achieved through the clean | 18 | | transportation standard, and targets for future reductions in | 19 | | greenhouse gas emissions. These reports shall include feedback | 20 | | solicited from stakeholders under paragraph (7) of Section 20. | 21 | | Section 50. Fuel supply forecasting. In consultation with | 22 | | the Department of Transportation and the Department of | 23 | | Agriculture, the Agency must develop a periodic fuel supply | 24 | | forecast to project the availability of fuels to the State |
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| 1 | | necessary for compliance with clean transportation standard | 2 | | requirements. The fuel supply forecast for each upcoming | 3 | | compliance period must include, but is not limited to, the | 4 | | following: | 5 | | (1) an estimate of the potential volumes of gasoline, | 6 | | gasoline substitutes, and gasoline alternatives, and | 7 | | diesel, diesel substitutes, and diesel alternatives | 8 | | available to the State. In developing this estimate, the | 9 | | Agency must consider, but is not limited to, considering: | 10 | | (A) the existing and future vehicle fleet in this | 11 | | State; and | 12 | | (B) any constraints that might be preventing | 13 | | access to available and cost-effective low-carbon | 14 | | fuels by the State, such as geographic and logistical | 15 | | factors, and alleviating factors to the constraints; | 16 | | (2) an estimate of the total banked credits and | 17 | | carried over deficits held by regulated parties, credit | 18 | | generators, and credit aggregators at the beginning of the | 19 | | compliance period, and an estimate of the total credits | 20 | | attributable to fuels described in paragraph (1); | 21 | | (3) an estimate of the number of credits needed to | 22 | | meet the applicable clean transportation standard | 23 | | requirements during the forecasted compliance period; and | 24 | | (4) a comparison in the estimates of paragraphs (1) | 25 | | and (2) with the estimate in paragraph (3), for the | 26 | | purpose of indicating the availability of fuels and banked |
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| 1 | | credits needed for compliance with the requirements of | 2 | | this chapter. | 3 | | The Agency may appoint a forecast review team of relevant | 4 | | experts to participate in the fuel supply forecast or | 5 | | examination of data required by this Section. The Agency must | 6 | | finalize a fuel supply forecast for an upcoming compliance | 7 | | period by no later than 90 days prior to the start of the | 8 | | compliance period. | 9 | | Section 55. Forecast deferral. | 10 | | (a) No later than 30 calendar days before the commencement | 11 | | of a compliance period, the Agency shall issue an order | 12 | | declaring a forecast deferral if the fuel supply forecast | 13 | | under Section 50 projects that the amount of credits that will | 14 | | be available during the forecast compliance period will be | 15 | | less than 100% of the credits projected to be necessary for | 16 | | regulated parties to comply with the scheduled applicable | 17 | | clean transportation standard adopted by the Agency for the | 18 | | forecast compliance period. | 19 | | (b) An order declaring a forecast deferral under this | 20 | | Section must set forth: | 21 | | (1) the duration of the forecast deferral; | 22 | | (2) the types of fuel to which the forecast deferral | 23 | | applies; and | 24 | | (3) which of the following methods the Agency has | 25 | | selected for deferring compliance with the scheduled |
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| 1 | | applicable clean transportation standard during the | 2 | | forecast deferral: | 3 | | (A) temporarily adjusting the scheduled applicable | 4 | | clean transportation program standard to a standard | 5 | | identified in the order that better reflects the | 6 | | forecast availability of credits during the forecast | 7 | | compliance period and requiring regulated entities to | 8 | | comply with the temporary standard; | 9 | | (B) requiring regulated entities to comply only | 10 | | with the clean transportation standard applicable | 11 | | during the compliance period prior to the forecast | 12 | | compliance period; or | 13 | | (C) suspending deficit accrual for part or all of | 14 | | the forecast deferral period. | 15 | | (c) In implementing a forecast deferral, the Agency may | 16 | | take an action for deferring compliance with the clean | 17 | | transportation standard other than, or in addition to, | 18 | | selecting a method under paragraph (3) of subsection (b) only | 19 | | if the Agency determines that none of the methods under | 20 | | paragraph (3) of subsection (b) will provide a sufficient | 21 | | mechanism for containing the costs of compliance with the | 22 | | clean transportation standard during the forecast deferral. | 23 | | (d) If the Agency makes the determination specified in | 24 | | subsection (c), the Agency shall: | 25 | | (1) include in the order declaring a forecast deferral | 26 | | the determination and the action to be taken; and |
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| 1 | | (2) provide written notification and justification of | 2 | | the determination and the action to: | 3 | | (A) the Governor; | 4 | | (B) the President of the Senate; | 5 | | (C) the Speaker of the House of Representatives; | 6 | | (D) the Majority and Minority Leaders of the | 7 | | Senate; and | 8 | | (E) the Majority and Minority Leaders of the House | 9 | | of Representatives. | 10 | | (e) The duration of a forecast deferral may not be less | 11 | | than one calendar quarter or longer than one compliance | 12 | | period. Only the Agency may terminate, by order, a forecast | 13 | | deferral before the expiration date of the forecast deferral. | 14 | | Termination of a forecast deferral is effective on the first | 15 | | day of the next calendar quarter after the date that the order | 16 | | declaring the termination is adopted. | 17 | | Section 60. Conflicts with other State programs. Nothing | 18 | | in this Act precludes the Agency or Board from adopting or | 19 | | maintaining other programs as permitted or required by | 20 | | existing or future legislation to reduce greenhouse gas | 21 | | emissions from the transportation sector. | 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.". |
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