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90_SB0908enr
1 5Y DESCRIPTION 30 CHARACTERS ONLY
(New Act)
Creates the Illinois Farm Economic Development and
Renewable Fuel Act.
SRS90S0039PDbm
SB908 Enrolled SRS90S0039PDbm
1 AN ACT to create the Illinois Farm Economic Development
2 and Renewable Fuel Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Illinois Farm Economic Development and Renewable Fuel Act.
7 Section 5. Findings. The legislature finds and declares
8 that it is in the interest of the people of this State that
9 the establishment of local grain processing centers be
10 encouraged in order to augment local agricultural markets,
11 promote agricultural diversification, expand rural employment
12 opportunities, promote economic activity, enhance the
13 environment, and protect and better use the land and
14 agricultural resources of the State.
15 The legislature finds that grain processing shall be
16 considered an agricultural pursuit for the purposes of any
17 laws that apply to or provide for the advancement, benefit,
18 or protection of the agriculture industry of the State.
19 Section 10. Purpose. The purpose of the Act is to
20 improve the environment, create jobs and rural economic
21 growth, and encourage energy self-reliance through the
22 establishment of community-sized grain processing centers
23 which produce ethyl alcohol and other grain products,
24 encourage the establishment of associated industries, and
25 assist Illinois farmers in expanding local markets for their
26 grain production.
27 Section 15. Definitions. For the purpose of this Act:
28 (a) "Associated industry" means an industry using the
29 by-products of a processing center, including, but not
SB908 Enrolled -2- SRS90S0039PDbm
1 limited to, ethyl alcohol, fermented grains, liquid feeds,
2 carbon dioxide, heat, or any other product resulting from the
3 processing of agricultural products and located in proximity
4 to the processing center.
5 (b) "Corn means Illinois produced corn used in a
6 processing center to make ethyl alcohol, fermented grains,
7 solubles, and carbon dioxide.
8 (c) "Department" means the Department of Agriculture.
9 (d) "Director" means the Director of Agriculture.
10 (e) "Ethyl alcohol" means fermentation ethyl alcohol
11 having a purity of at least 95% (190 proof) and derived from
12 agricultural products, including potatoes, cereal grains,
13 cheese, whey, and sugar beets; forest products; or other
14 renewable resources, including residue and waste generated
15 from the production, processing, and marketing of
16 agricultural products, forest products, and other renewable
17 resources.
18 (f) "Processing center" means a grain processing center
19 at which ethyl alcohol is produced by fermenting corn or
20 other organic materials and which is owned by a governmental
21 unit or a private entity that provides Illinois farmers the
22 opportunity to invest.
23 Section 20. Grain processing payments.
24 (a) Subject to appropriation, the Director shall make
25 cash payments to processors in this State that use corn to
26 make ethyl alcohol and other products. These payments shall
27 apply only to corn used to make ethyl alcohol and other
28 products in this State at a processing center that begins
29 production after January 1, 1998. For the purpose of this
30 Section, an entity that holds a controlling interest in more
31 than one processing center shall be considered a single
32 processor. The amount of the payment for each processor's
33 annual consumption shall be 30 cents per bushel of corn for
SB908 Enrolled -3- SRS90S0039PDbm
1 each bushel of corn used to produce ethyl alcohol and other
2 products in a grain processing center that began production
3 after January 1, 1998. Payment shall be made only during
4 the 5-year period beginning at the same time as the start of
5 production. Payment shall be made only on the first
6 5,000,000 bushels of corn consumed annually at each
7 processing center.
8 (b) Subject to appropriation, the Director shall make
9 payments to processors of corn in the amount of 1.5 cents for
10 each kilowatt hour of electricity generated using closed-loop
11 biomass, coal mine methane gas from abandoned mines, or
12 methane from waste disposal, including but not limited to,
13 sanitary landfills, animal manures, or food processing, in a
14 cogeneration facility serving a processing center or
15 associated industry located in this State. Payments under
16 this subsection (b) shall be made only for electricity
17 generated at cogeneration facilities serving processing
18 centers that begin operation after January 1, 1998. The
19 payments shall apply to electricity generated on or before
20 the date 5 years after the processor first qualifies for
21 payment under this Act. Total payments to processors under
22 this Section in any fiscal year may not exceed $750,000. For
23 the purposes of this Section:
24 (i) "closed-loop biomass" means any organic
25 material from a plant that is planted for the purpose of
26 being used to generate electricity or for multiple
27 purposes that include being used to generate electricity;
28 and
29 (ii) "cogeneration" means the combined generation
30 of:
31 (1) electrical or mechanical power; and
32 (2) steam or forms of useful energy,
33 including, but not limited to heat, that are used
34 for industrial, commercial, heating, or cooling
SB908 Enrolled -4- SRS90S0039PDbm
1 purposes.
2 (c) The total payments under subsections (a) and (b) to
3 all processors may not exceed $4,500,000 in a fiscal year.
4 Total payments under subsections (a) and (b) to a processor
5 in a fiscal year may not exceed $2,250,000.
6 (d) By the last day of September, December, March, and
7 June of each year, each processor shall file a claim for
8 payment for the bushels of corn used in a grain processing
9 center during the preceding 3 calendar months. A processor
10 with more than one processing center shall file a separate
11 claim for each such processing center. A processor who files
12 a claim under this Section shall include a statement of the
13 processor's total corn consumption and total ethyl alcohol
14 production during the quarter covered by the claim. A
15 processor shall file a separate claim for any amount claimed
16 under subsection (b). For each claim and statement of
17 production filed under this Act, the volumes and amounts
18 claimed must be examined by an independent certified public
19 accountant in accordance with standards established by the
20 American Institute of Certified Public Accountants.
21 (e) Subject to appropriation, payments under this
22 Section shall be made October 15, January 15, April 15, and
23 July 15 of each year. Subject to appropriation, a separate
24 payment shall be made for each claim filed. The total
25 quarterly payment to a processor under this Act may not
26 exceed $562,500. If the total amount for which all
27 processors are eligible in a quarter under subsections (a)
28 and (b) exceeds $1,125,000, the Director shall make payments,
29 subject to appropriation, in the order in which the portion
30 of production capacity covered by each claim went into
31 production. Only those processors who receive payments for
32 the quarter or received payments under subsections (a) or (b)
33 in an earlier quarter will be eligible for corn payments
34 under this Act.
SB908 Enrolled -5- SRS90S0039PDbm
1 (f) If the total amount for which all processors are
2 eligible in a quarter under Section 20(b) exceeds the amount
3 available for payments, subject to appropriation, the
4 Director shall make payments in the order in which the
5 processing centers covered by the claims began generating
6 electricity using closed-loop biomass, coal mine methane gas
7 from abandoned mines, or methane from waste disposal,
8 including, but not limited to, sanitary landfills, animal
9 manures, or food processing.
10 Section 25. Rule making. The Director shall adopt
11 emergency and permanent rules to implement this Act.
12 Section 30. Partial invalidity. If any provision of
13 this Act or the application thereof to any person or
14 circumstance is held invalid, the remainder of this Act and
15 the application of that provision to other persons or
16 circumstances shall not be affected thereby.
17 Section 35. Expiration. This Act expires December 31,
18 2005, and the unobligated balance of each appropriation under
19 this Act on that date shall revert to the General Revenue
20 Fund.
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.