Full Text of SB1556 103rd General Assembly
SB1556sam002 103RD GENERAL ASSEMBLY | Sen. David Koehler Filed: 3/8/2024 | | 10300SB1556sam002 | | LRB103 26950 BDA 70830 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 | 16 | | Intergovernmental Panel on Climate Change as an important |
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| 1 | | pathway for holding global warming at 1.5 degrees Celsius. | 2 | | A clean transportation standard would promote innovation | 3 | | in and production and use of nonpetroleum fuels that | 4 | | reduce vehicle-related and fuel-related air pollution that | 5 | | endangers public health and welfare and disproportionately | 6 | | impacts disadvantaged communities. | 7 | | (3) Credits generated through the use of clean fuel | 8 | | under this Act will promote innovation and investment in | 9 | | clean fuels. | 10 | | Section 10. Definitions. As used in this Act: | 11 | | "Agency" means the Environmental Protection Agency. | 12 | | "Aggregator" or "credit aggregator" means a person who | 13 | | registers to participate in the clean transportation standard | 14 | | program on behalf of one or more credit generators to | 15 | | facilitate credit generation and to trade credits. | 16 | | "Aviation fuel" means a fuel suitably blended to be used | 17 | | in aviation engines. | 18 | | "Backstop aggregator" means a qualified nonprofit entity | 19 | | approved by the Agency to aggregate credits for electricity | 20 | | used as a transportation fuel when those credits would not | 21 | | otherwise be generated. | 22 | | "Board" means the Pollution Control Board. | 23 | | "Carbon intensity" means the amount of life cycle | 24 | | greenhouse gas emissions per unit of fuel energy expressed in | 25 | | grams of carbon dioxide equivalent per megajoule. |
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| 1 | | "Clean fuel" means a transportation fuel that is | 2 | | domestically produced and has a carbon intensity below the | 3 | | clean transportation standard carbon intensity standard in a | 4 | | given year. | 5 | | "Clean transportation standard" means the standard adopted | 6 | | by the Board under Section 15 for the reduction, on average, of | 7 | | life cycle carbon intensity of fuels used for on-road | 8 | | transportation. If there is an industry-accepted standard for | 9 | | calculating the carbon intensity of different modes of | 10 | | transportation, such as off-road, light rail, and other forms | 11 | | of mass transportation, the Board shall adopt that standard | 12 | | for those modes of transportation. | 13 | | "Consumer Price Index for All Urban Consumers" or "CPI-U" | 14 | | means the index published by the Bureau of Labor Statistics of | 15 | | the United States Department of Labor that measures the | 16 | | average change in prices of goods and services, United States | 17 | | city average, all items. | 18 | | "Credit" means a unit of measure generated when clean fuel | 19 | | is provided for use in this State, such that one credit is | 20 | | equal to one metric ton of carbon dioxide equivalent. | 21 | | "Credit generator" means a regulated entity that generates | 22 | | a credit in the clean transportation standard. | 23 | | "Deficit" means a unit of measure generated when a fuel | 24 | | provided in this State has a carbon intensity that exceeds the | 25 | | clean transportation standard for the applicable year, | 26 | | expressed in metric tons of carbon dioxide equivalent. |
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| 1 | | "Deficit generator" means a regulated entity that | 2 | | generates a deficit in the clean transportation standard. | 3 | | "Fuel" means any one or more of the following that is used | 4 | | to power vehicles or equipment for the purpose of | 5 | | transportation: electricity or a liquid, gaseous, or blended | 6 | | fuel, including gasoline, diesel, liquefied petroleum gas, | 7 | | natural gas, or hydrogen. | 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 | | "Life cycle 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 by | 16 | | the Agency under subsection (2) of Section 20 using the | 17 | | 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 clean fuel. | 26 | | "Provider" means: |
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| 1 | | (1) with respect to any liquid fuel, hydrogen fuel, | 2 | | and renewable propane used as a fuel source for | 3 | | transportation, the person who refines, produces, or | 4 | | imports the fuel; | 5 | | (2) with respect to any biomethane, the person who | 6 | | imports or produces, refines, treats, or otherwise | 7 | | processes biogas into biomethane used as a fuel source for | 8 | | transportation; | 9 | | (3) with respect to electricity used as a fuel source | 10 | | for transportation, the person who is the direct provider | 11 | | of electricity, the electric vehicle charging service | 12 | | provider, the electric utility, the electric vehicle fleet | 13 | | operator, the electric vehicle manufacturer, and the | 14 | | owners or operators of charging stations located on | 15 | | commercial property; or | 16 | | (4) with respect to other types of fuel, a person | 17 | | determined to be the provider by the Agency. | 18 | | "Provider" does not include the owner or operator of a | 19 | | residential charging station. | 20 | | "Regulated entity" means any entity, whether a credit | 21 | | generator or deficit generator, that has registered, on a | 22 | | mandatory or permissive basis, to participate in the clean | 23 | | transportation standard. | 24 | | "Sustainable aviation fuel" means an aviation fuel with a | 25 | | carbon intensity sufficient to generate credits under the | 26 | | clean transportation standard upon its production or supply. |
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| 1 | | "Tactical support equipment" means equipment using a | 2 | | portable engine, including turbines, that meets military | 3 | | specifications, is owned by the U.S. Department of Defense or | 4 | | the U.S. military services or its allies, and is used in | 5 | | combat, combat support, combat service support, tactical or | 6 | | relief operations, or training for such operations. "Tactical | 7 | | support equipment" includes, but is not limited to, engines | 8 | | associated with portable generators, aircraft start carts, | 9 | | heaters and lighting carts. | 10 | | Section 15. Rulemaking and baseline calculations for clean | 11 | | transportation standard. | 12 | | (a) To the extent allowed by federal law, within 24 months | 13 | | after the effective date of this Act, the Agency shall propose | 14 | | and the Board shall adopt rules establishing a clean | 15 | | transportation standard in order to reduce, within 10 years of | 16 | | the adoption of the Agency's rules by the Board, the life cycle | 17 | | carbon intensity of fuels for the ground transportation sector | 18 | | by 25% below the 2019 baseline level as calculated under this | 19 | | Section. After the 25% reduction described in this Section is | 20 | | attained, the Agency shall prepare a report that proposes | 21 | | further reductions in the life cycle carbon intensity of fuels | 22 | | for the ground transportation sector for the following 10 | 23 | | years. The report prepared by the Agency shall include | 24 | | proposed changes to this Act that are required to implement | 25 | | those reductions. The rules proposed and adopted shall be |
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| 1 | | subject to public notice and comment under the Illinois | 2 | | Administrative Procedure Act. The Board may recommend to the | 3 | | General Assembly reductions to the clean transportation | 4 | | standard below those adopted in accordance with this Act, | 5 | | using factors, including, but not limited to, advances in | 6 | | clean fuel technology. The rules adopted by the Board under | 7 | | this Section shall include fees for the registration of | 8 | | regulated entities to offset the costs incurred by the Board | 9 | | and the Agency that are associated with implementing the clean | 10 | | transportation standard. These fees shall be used only in | 11 | | connection with the administration of the program and may be | 12 | | levied differently based on whether a regulated entity is a | 13 | | credit generator or deficit generator. Except where otherwise | 14 | | provided in this Act, the Agency shall consider rules that are | 15 | | harmonized, to the extent practicable, with the regulatory | 16 | | standards, exemptions, reporting obligations, and other clean | 17 | | transportation standard compliance requirements and methods | 18 | | for credit generation of other states that have adopted | 19 | | low-carbon fuel standards or similar greenhouse gas emissions | 20 | | requirements applicable specifically to transportation fuels. | 21 | | (b) The Agency shall calculate the baseline carbon | 22 | | intensities of the petroleum-only portion of all | 23 | | transportation fuels produced or imported in 2019 for use in | 24 | | this State by: | 25 | | (1) reviewing and considering the best available | 26 | | applicable scientific data and calculations; and |
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| 1 | | (2) using a life cycle emissions, performance-based | 2 | | approach that is technology-and-feedstock neutral. | 3 | | Section 20. Contents of clean transportation standard. The | 4 | | clean transportation standard adopted by the Board, by rule, | 5 | | shall: | 6 | | (1) apply to all providers in the State; | 7 | | (2) be measured based on a life cycle carbon intensity | 8 | | that shall be calculated by the Agency in accordance with | 9 | | Section 30; | 10 | | (3) recognize voluntary farm emissions reductions that | 11 | | contribute to the reduced carbon intensity of fuels by | 12 | | allowing credit generators to use individualized | 13 | | farm-level carbon intensity scoring for approved | 14 | | sustainable agricultural practices and by requiring the | 15 | | Agency to use the GREET model's Feedstock Carbon Intercity | 16 | | Calculator (FD-CIC) to determine individualized farm-level | 17 | | carbon intensity scoring; | 18 | | (4) take into consideration the low-carbon clean | 19 | | transportation fuel standards that are pending or have | 20 | | been adopted in other states, including their provisions | 21 | | related to the inclusion of additional credit | 22 | | opportunities from activities and projects that support | 23 | | the reduction or removal of greenhouse gas emissions | 24 | | associated with transportation in the State, and that | 25 | | allow regulated entities to generate credits under any |
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| 1 | | overlapping current and future federal transportation fuel | 2 | | statutes and regulations; | 3 | | (5) include a credit price cap (i) that is to be | 4 | | determined by the Agency and confirmed by the Board to | 5 | | contain costs if the fuel supply forecasts determine that | 6 | | not enough credits will be available and (ii) that shall | 7 | | be adjusted annually by the rate of inflation as measured | 8 | | by the most recently available 12 months of the Consumer | 9 | | Price Index for All Urban Consumers; | 10 | | (6) contain a structure for compliance that conforms | 11 | | with the marketplace system described in Section 25, | 12 | | including, but not limited to, details, such as: | 13 | | (A) methods for assigning compliance obligations | 14 | | and methods for tracking tradable credits; | 15 | | (B) mechanisms that allow credits to be traded, | 16 | | transferred, sold, and banked for future compliance | 17 | | periods; | 18 | | (C) mechanisms that provide for the creation of a | 19 | | list of accepted credit transactions and a list of | 20 | | prohibited forms of credit transactions, which may | 21 | | include trades involving, related to, or associated | 22 | | with any of the following: | 23 | | (i) any manipulative or deceptive device; | 24 | | (ii) a corner or an attempt to corner the | 25 | | market for credits; | 26 | | (iii) fraud or an attempt to defraud any other |
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| 1 | | entity; | 2 | | (iv) false, misleading, or inaccurate reports | 3 | | concerning information or conditions that affect | 4 | | or tend to affect the price of a credit; and | 5 | | (v) applications, reports, statements, or | 6 | | documents required to be filed under this Act that | 7 | | are false or misleading with respect to a material | 8 | | fact or that omit a material fact necessary to | 9 | | make the contents therein not misleading; | 10 | | (C) procedures for verifying the validity of | 11 | | credits and deficits generated under the clean | 12 | | transportation standard; | 13 | | (D) mechanisms by which persons associated with | 14 | | the supply chains of transportation fuels that are | 15 | | used for purposes that are exempt from the clean | 16 | | transportation standard described in Section 40 and | 17 | | persons that are associated with the supply chains of | 18 | | transportation fuels and will generate credits may | 19 | | register with the Agency to participate in the clean | 20 | | transportation standard program; and | 21 | | (E) an administrative procedure by which a | 22 | | regulated entity may contest the Board's or Agency's | 23 | | calculation prior to the levying of a penalty for | 24 | | failure to remedy a given deficit; | 25 | | (F) procedures that will allow the Agency to | 26 | | cancel or reverse (i) a credit transfer that is |
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| 1 | | determined to be a prohibited transaction under items | 2 | | (i) through (v) of subparagraph (B) or (ii) any other | 3 | | prohibited transaction as determined by the Board in | 4 | | rulemaking; | 5 | | (7) contain a program review procedure whereby the | 6 | | Board or Agency shall, every 3 years after the | 7 | | implementation of the clean transportation standard, | 8 | | solicit feedback from and consult with representatives | 9 | | from stakeholder groups, including representatives from | 10 | | the fuel production industry, the transportation industry, | 11 | | the agricultural industry, environmental advocacy | 12 | | organizations, labor organizations, representatives from | 13 | | impacted environmental justice communities, as defined in | 14 | | Section 801-10 of the Illinois Finance Authority Act, and | 15 | | representatives from related State agencies; the substance | 16 | | of the consultations shall include, but may not be limited | 17 | | to, a review of the economic impact of the clean | 18 | | transportation standard, whether the clean transportation | 19 | | standard is adhering to the established carbon intensity | 20 | | reduction goals, the health impact of the emissions | 21 | | reductions on disadvantaged environmental justice | 22 | | communities, as defined in Section 801-10 of the Illinois | 23 | | Finance Authority Act, and whether access to | 24 | | transportation has been affected as a result of the | 25 | | implementation of the clean transportation standard; | 26 | | (8) include annual carbon intensity reduction |
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| 1 | | standards that are to be met by regulated entities and | 2 | | that result in the attainment of carbon intensity | 3 | | reduction targets set by the Board; | 4 | | (9) maximize benefits to the environment and natural | 5 | | resources and develop safeguards and incentives to protect | 6 | | natural lands and enhance environmental integrity, | 7 | | including biodiversity; | 8 | | (10) aim to support, through credit generation or | 9 | | other financial means, voluntary farmer-led efforts to | 10 | | adopt agricultural practices that benefit soil health and | 11 | | water quality; | 12 | | (11) support equitable transportation electrification | 13 | | that benefits all communities and is powered primarily | 14 | | with low-carbon and carbon-free electricity; | 15 | | (12) seek to improve air quality and public health, | 16 | | targeting communities that bear a disproportionate health | 17 | | burden from transportation pollution; | 18 | | (13) establish, in consultation with the Department of | 19 | | Agriculture and the Department of Transportation, a | 20 | | procedure for determining fuel pathways that: | 21 | | (A) is consistent for all fuel types; | 22 | | (B) is based on science and engineering; and | 23 | | (C) accounts for any on-site additional energy use | 24 | | by a carbon capture technology employed in the fuel | 25 | | production process, including, but not limited to, | 26 | | generation, distillation, and compression; |
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| 1 | | (14) recognize that farmers who can demonstrate use of | 2 | | production methods that lower the carbon intensity of | 3 | | their commodities shall be compensated a fair market value | 4 | | that is, at minimum, commensurate with costs associated | 5 | | with those low-carbon production methods or shall be | 6 | | provided a fair share of the increased market value of the | 7 | | end-use product that their commodity is used to produce. | 8 | | Compensation may come in a variety of forms, including, | 9 | | but not limited to, practice-based incentive payments, | 10 | | outcome-based incentive payments, price premiums, or other | 11 | | forms of payment. The Agency shall also protect farm data | 12 | | by ensuring farmer ownership of data for a specific amount | 13 | | of time or negotiated on an annual basis; | 14 | | (15) contain mechanisms to excuse noncompliance from | 15 | | enforcement action if compliance is impossible, including | 16 | | rules that shall specify the criteria and procedures for | 17 | | the Agency to determine whether a period of noncompliance | 18 | | is excusable in accordance with Sections 50 and 55; | 19 | | (16) include mechanisms by which providers who would | 20 | | be eligible to generate credits from electricity used as | 21 | | transportation fuel may assign their right to generate | 22 | | credits to an aggregator, and include mechanisms by which | 23 | | a backstop aggregator may register with the program to | 24 | | generate credits if an electric utility opts out of the | 25 | | program; and | 26 | | (17) provide indirect accounting mechanisms, such as |
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| 1 | | book-and-claim or mass-balancing for clean fuels entering | 2 | | fungible supply systems that can access this State. | 3 | | Section 25. Credit market; verification and data privacy; | 4 | | compliance and penalties. | 5 | | (a) The clean transportation standard adopted by the Board | 6 | | shall take the form of a credit marketplace with the following | 7 | | structure. The marketplace shall consist of a system of | 8 | | credits and deficits monitored by the Agency. The Agency shall | 9 | | compile a list of fuel pathways that providers may use to | 10 | | generate credits. Providers seeking to be credit generators | 11 | | must register with the Agency and attest to the transportation | 12 | | fuels they provide in the State in order to qualify to generate | 13 | | credits. Each deficit generator must register and comply with | 14 | | the program. Fuels that are registered with the program must | 15 | | have a dedicated, verifiable fuel pathway with a carbon | 16 | | intensity score measurable by software described in Section 30 | 17 | | and assigned a unique identifier by the Agency. Providers | 18 | | reaching or exceeding the required reduction of life cycle | 19 | | carbon intensity under the clean transportation standard shall | 20 | | receive credits from the Agency upon verification described in | 21 | | subsection (b) at the end of a reoccurring reporting period as | 22 | | determined by the Agency. Fuel providers that are deficit | 23 | | generators during a year shall eliminate the deficit by either | 24 | | providing transportation fuels whose carbon intensity is at or | 25 | | below the level of that year's annual clean transportation |
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| 1 | | standard or by purchasing credits to offset the deficit. The | 2 | | system of credits created under this subsection shall provide | 3 | | credits based on a life cycle emissions performance-based | 4 | | approach that is technology neutral, feedstock neutral, and | 5 | | has the purpose of achieving transportation fuel | 6 | | decarbonization. | 7 | | (b) The Agency must, in collaboration with the Department | 8 | | of Agriculture and the Department of Transportation, establish | 9 | | acceptable methods to verify that the transportation fuel used | 10 | | by regulated entities has been provided following the pathway | 11 | | bearing the unique identifier as attested by the regulated | 12 | | entity. The Agency is authorized to contract with third party | 13 | | verifiers to accomplish this requirement. Upon registering | 14 | | with the program, regulated entities must agree to provide | 15 | | data related to the registered fuel pathway used to generate | 16 | | credits or deficits with the Agency as required to administer | 17 | | the program. Upon registering with the program, regulated | 18 | | entities must agree to be subject to periodic audits as | 19 | | determined by the Agency. | 20 | | All information gathered by or provided to the Agency or | 21 | | contractors of the Agency, either by regulated entities, | 22 | | agents of regulated entities, or growers of feedstock used in | 23 | | a registered fuel pathway by regulated entities, through | 24 | | either voluntary disclosure or audit, must not be shared by | 25 | | the Agency with any party except in relation to the | 26 | | administration of the clean transportation standard absent |
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| 1 | | written consent by the regulated entity and the entity from | 2 | | which the data was gathered. This data must not be used for any | 3 | | purpose outside of the administration and enforcement of the | 4 | | clean transportation standard except by written consent from | 5 | | the original data holder. Ownership of all data shared or | 6 | | collected by the Agency for the administration and enforcement | 7 | | of the clean transportation standard is retained with the | 8 | | entity from which the data originates. Data protected under | 9 | | this subparagraph does not include a regulated entity's credit | 10 | | or deficit balance, which may be publicly disclosed by the | 11 | | Agency. | 12 | | (c) Deficit generators who fail to offset their deficits | 13 | | at the conclusion of any compliance period administered by the | 14 | | Agency shall be subject to a civil penalty established by the | 15 | | Agency subject to the following limitations: | 16 | | (1) the value of the penalty shall correspond to the | 17 | | amount of deficits attributed to a given regulated entity | 18 | | at the time the transaction has completed; and | 19 | | (2) for every one deficit the regulated entity fails | 20 | | to offset, the penalty for failure to offset that deficit | 21 | | shall not exceed 10 times the value of the credit needed to | 22 | | offset the deficit. | 23 | | (d) Regulated entities that submit false information in | 24 | | support of an application to register for the clean | 25 | | transportation standard, that share false information during | 26 | | an audit or in support of an attestation, or that otherwise |
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| 1 | | share false or inaccurate information to the Agency or a | 2 | | contractor working under the direction of the Agency shall be | 3 | | subject to penalties to be determined by the Agency by rule. | 4 | | Penalties under this paragraph may include monetary penalties, | 5 | | forfeiture of credits, and reversals of prohibited | 6 | | transactions as described in subparagraph (B) of paragraph (6) | 7 | | of Section 20. The Agency may waive penalties under this | 8 | | subparagraph. If the violator under this subsection is a | 9 | | credit generator, following 3 violations, the Agency may | 10 | | remove the violating credit generator from the clean | 11 | | transportation standard. In determining whether penalties | 12 | | should be applied and, if a penalty is to be applied, the | 13 | | amount of penalties to be levied for violations under this | 14 | | subparagraph, the Agency shall consider: | 15 | | (1) evidence of willfulness by the regulated entity to | 16 | | submit false information; | 17 | | (2) the scope of the false information; | 18 | | (3) evidence of past submissions of false information; | 19 | | and | 20 | | (4) efforts undertaken by the regulated entity to | 21 | | remedy the false submission. | 22 | | (e) The penalties provided for in this Section may be | 23 | | recovered in a civil action brought in the name of the people | 24 | | of the State of Illinois by the State's Attorney of the county | 25 | | in which the violation occurred or by the Attorney General. | 26 | | Any penalties collected under this Section in an action in |
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| 1 | | which the Attorney General has prevailed shall be used to | 2 | | offset registration fees in support of the administration of | 3 | | the clean transportation standard program. Any amount of | 4 | | penalties collected in addition to the amount needed to | 5 | | administer the clean transportation standard program shall be | 6 | | deposited into the Environmental Protection Trust Fund, to be | 7 | | used in accordance with the provisions of the Environmental | 8 | | Protection Trust Fund Act. | 9 | | (f) The Attorney General or the State's Attorney of a | 10 | | county in which a violation occurs may institute a civil | 11 | | action for an injunction, prohibitory or mandatory, to | 12 | | restrain violations of this Act or to require such actions as | 13 | | may be necessary to address violations of this Act. | 14 | | (g) The penalties and injunctions provided in this Act are | 15 | | in addition to any penalties, injunctions, or other relief | 16 | | provided under any other law. Nothing in this Act bars an | 17 | | action by the State for any other penalty, injunction, or | 18 | | other relief provided by any other law. | 19 | | Section 30. Life cycle carbon intensity calculations; | 20 | | software. The life cycle carbon intensity calculation | 21 | | conducted by the Agency under paragraph (2) of Section 20 | 22 | | shall use the Argonne National Laboratory's GREET model and | 23 | | shall include all stages of fuel and feedstock production and | 24 | | distribution, from feedstock generation or extraction through | 25 | | the distribution, delivery, and use of the finished fuel by |
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| 1 | | the ultimate consumer. The Agency shall, as needed and | 2 | | periodically as established by rule, use as up-to-date a model | 3 | | as possible, taking into account staffing and hiring needs. | 4 | | Carbon intensity values calculated for clean fuel pathways | 5 | | under construction or in operation using the current version | 6 | | of the GREET model shall be allowed if the GREET model is | 7 | | revised during the compliance year. In calculating the life | 8 | | cycle carbon intensity, the mass values for all greenhouse | 9 | | gases that are not carbon dioxide must be adjusted to account | 10 | | for each of their relative global warming potentials. This | 11 | | adjustment shall be performed using the global warming | 12 | | potential deemed most accurate by the Agency for each | 13 | | greenhouse gas for the period during which reductions in | 14 | | greenhouse gas emissions are to be attained under the clean | 15 | | transportation standard. When measuring the carbon intensity | 16 | | of clean fuels, the Agency shall use the GREET model's | 17 | | Feedstock Carbon Intensity Calculator (FD-CIC) for the | 18 | | purposes of accounting for variations in farming practices | 19 | | across different fuel pathways. | 20 | | Section 35. Investments by backstop aggregators and | 21 | | utilities. In implementing this Act, the Agency and Board | 22 | | shall establish rules directing participating utilities and | 23 | | backstop aggregators under the standard to invest all revenue | 24 | | earned from trading credits toward investments into | 25 | | distribution, grid modernization, infrastructure and other |
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| 1 | | projects that support transportation decarbonization, with at | 2 | | least 50% of such revenues supporting environmental justice | 3 | | communities as defined in Section 801-10 of the Illinois | 4 | | Finance Authority Act. All labor paid for with money from | 5 | | required investments under this Section shall be subject to | 6 | | the prevailing wage. The Agency and Board shall determine | 7 | | projects and goals under this Act in consultation with | 8 | | relevant stakeholders, including, but not limited to, credit | 9 | | generators, affected communities, and environmental justice | 10 | | advocacy organizations. | 11 | | Section 40. Exemptions. The following fuels are exempt | 12 | | from the clean transportation standard established in Section | 13 | | 15: | 14 | | (1) aviation fuels; | 15 | | (2) transportation fuel used in locomotives; | 16 | | (3) transportation fuel used in ocean-going vessels; | 17 | | and | 18 | | (4) fuel used in military tactical vehicles and | 19 | | tactical support equipment owned by the U.S. Department of | 20 | | Defense or the U.S. military services. | 21 | | However, providers of these fuels, if deemed to be clean | 22 | | fuels, shall be eligible under the rules adopted pursuant to | 23 | | this Act to receive credits on an opt-in basis that may be | 24 | | applied to future obligations or sold to deficit generators. |
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| 1 | | Section 45. Agency reporting obligation. Within 12 months | 2 | | after the implementation of the clean transportation standard, | 3 | | the Agency shall submit a report to the General Assembly | 4 | | detailing the implementation of the clean transportation | 5 | | standard, the reductions in greenhouse gas emissions that have | 6 | | been achieved through the clean transportation standard, and | 7 | | targets for future reductions in greenhouse gas emissions. | 8 | | These reports shall include feedback solicited from | 9 | | stakeholders under paragraph (7) of Section 20. | 10 | | Section 50. Fuel supply forecasting. In consultation with | 11 | | the Department of Transportation and the Department of | 12 | | Agriculture, the Agency must develop a periodic fuel supply | 13 | | forecast to project the availability of fuels to the State | 14 | | necessary for compliance with clean transportation standard | 15 | | requirements. The fuel supply forecast for each upcoming | 16 | | compliance period must include, but is not limited to, the | 17 | | following: | 18 | | (1) an estimate of the potential volumes of gasoline, | 19 | | gasoline substitutes, and gasoline alternatives, and | 20 | | diesel, diesel substitutes, and diesel alternatives | 21 | | available to the State. In developing this estimate, the | 22 | | Agency must consider, but is not limited to, considering: | 23 | | (A) the existing and future vehicle fleet in this | 24 | | State; and | 25 | | (B) any constraints that might be preventing |
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| 1 | | access to available and cost-effective clean fuels by | 2 | | the State, such as geographic and logistical factors, | 3 | | and alleviating factors to the constraints; | 4 | | (2) an estimate of the total banked credits and | 5 | | carried over deficits held by regulated entities, credit | 6 | | generators, and credit aggregators at the beginning of the | 7 | | compliance period, and an estimate of the total credits | 8 | | attributable to fuels described in paragraph (1); | 9 | | (3) an estimate of the number of credits needed to | 10 | | meet the applicable clean transportation standard | 11 | | requirements during the forecasted compliance period; and | 12 | | (4) a comparison in the estimates of paragraphs (1) | 13 | | and (2) with the estimate in paragraph (3), for the | 14 | | purpose of indicating the availability of fuels and banked | 15 | | credits needed for compliance with the requirements of | 16 | | this chapter. | 17 | | The Agency may appoint a forecast review team of relevant | 18 | | experts to participate in the fuel supply forecast or | 19 | | examination of data required by this Section. The Agency must | 20 | | finalize a fuel supply forecast for an upcoming compliance | 21 | | period by no later than 90 days prior to the start of the | 22 | | compliance period. | 23 | | Section 55. Forecast deferral. | 24 | | (a) No later than 30 calendar days before the commencement | 25 | | of a compliance period, the Agency shall issue an order |
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| 1 | | declaring a forecast deferral if the fuel supply forecast | 2 | | under Section 50 projects that the amount of credits that will | 3 | | be available during the forecast compliance period will be | 4 | | less than 100% of the credits projected to be necessary for | 5 | | regulated parties to comply with the scheduled applicable | 6 | | clean transportation standard adopted by the Agency for the | 7 | | forecast compliance period. | 8 | | (b) An order declaring a forecast deferral under this | 9 | | Section must set forth: | 10 | | (1) the duration of the forecast deferral; | 11 | | (2) the types of fuel to which the forecast deferral | 12 | | applies; and | 13 | | (3) which of the following methods the Agency has | 14 | | selected for deferring compliance with the scheduled | 15 | | applicable clean transportation standard during the | 16 | | forecast deferral: | 17 | | (A) temporarily adjusting the scheduled applicable | 18 | | clean transportation program standard to a standard | 19 | | identified in the order that better reflects the | 20 | | forecast availability of credits during the forecast | 21 | | compliance period and requiring regulated entities to | 22 | | comply with the temporary standard; | 23 | | (B) requiring regulated entities to comply only | 24 | | with the clean transportation standard applicable | 25 | | during the compliance period prior to the forecast | 26 | | compliance period; or |
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| 1 | | (C) suspending deficit accrual for part or all of | 2 | | the forecast deferral period. | 3 | | (c) In implementing a forecast deferral, the Agency may | 4 | | take an action for deferring compliance with the clean | 5 | | transportation standard other than, or in addition to, | 6 | | selecting a method under paragraph (3) of subsection (b) only | 7 | | if the Agency determines that none of the methods under | 8 | | paragraph (3) of subsection (b) will provide a sufficient | 9 | | mechanism for containing the costs of compliance with the | 10 | | clean transportation standard during the forecast deferral. | 11 | | (d) If the Agency makes the determination specified in | 12 | | subsection (c), the Agency shall: | 13 | | (1) include in the order declaring a forecast deferral | 14 | | the determination and the action to be taken; and | 15 | | (2) provide written notification and justification of | 16 | | the determination and the action to: | 17 | | (A) the Governor; | 18 | | (B) the President of the Senate; | 19 | | (C) the Speaker of the House of Representatives; | 20 | | (D) the Majority and Minority Leaders of the | 21 | | Senate; and | 22 | | (E) the Majority and Minority Leaders of the House | 23 | | of Representatives. | 24 | | (e) The duration of a forecast deferral may not be less | 25 | | than one calendar quarter or longer than one compliance | 26 | | period. Only the Agency may terminate, by order, a forecast |
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| 1 | | deferral before the expiration date of the forecast deferral. | 2 | | Termination of a forecast deferral is effective on the first | 3 | | day of the next calendar quarter after the date that the order | 4 | | declaring the termination is adopted. | 5 | | Section 60. Conflicts with other State programs. Nothing | 6 | | in this Act precludes the Agency or Board from adopting or | 7 | | maintaining other programs as permitted or required by | 8 | | existing or future legislation to reduce greenhouse gas | 9 | | emissions from the transportation sector. | 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.". |
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