State of Illinois
92nd General Assembly
Legislation

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92_HB0002

 
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 1        AN ACT in relation to alternate fuels

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Motor Fuel Tax Law is amended by changing
 5    Section 2 and adding Section 8b as follows:

 6        (35 ILCS 505/2) (from Ch. 120, par. 418)
 7        Sec.  2.  A  tax is imposed on the privilege of operating
 8    motor vehicles upon the public highways and recreational-type
 9    watercraft upon the waters of this State.
10        (a)  Prior to August 1, 1989, the tax is imposed  at  the
11    rate  of  13 cents per gallon on all motor fuel used in motor
12    vehicles operating on the public  highways  and  recreational
13    type  watercraft  operating  upon  the  waters of this State.
14    Beginning on August 1, 1989 and until January  1,  1990,  the
15    rate  of  the tax imposed in this paragraph shall be 16 cents
16    per gallon.  Beginning January  1,  1990,  the  rate  of  tax
17    imposed in this paragraph shall be 19 cents per gallon.
18        (b)  The tax on the privilege of operating motor vehicles
19    which  use  diesel  fuel  shall  be  the  rate  according  to
20    paragraph  (a)  plus  an  additional  2 1/2 cents per gallon.
21    "Diesel fuel" is defined as any  petroleum  product  intended
22    for  use  or  offered for sale as a fuel for engines in which
23    the fuel is injected into the combustion chamber and  ignited
24    by pressure without electric spark.
25        (c)  A  tax  is imposed upon the privilege of engaging in
26    the business of selling motor fuel as a retailer or  reseller
27    on  all  motor  fuel  used in motor vehicles operating on the
28    public highways and recreational  type  watercraft  operating
29    upon the waters of this State: (1) at the rate of 3 cents per
30    gallon  on  motor fuel owned or possessed by such retailer or
31    reseller at 12:01 a.m. on August 1, 1989; and (2) at the rate
 
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 1    of 3 cents per gallon on motor fuel  owned  or  possessed  by
 2    such retailer or reseller at 12:01 A.M. on January 1, 1990.
 3        Retailers   and   resellers   who  are  subject  to  this
 4    additional tax shall be required to inventory such motor fuel
 5    and pay this additional tax in a  manner  prescribed  by  the
 6    Department of Revenue.
 7        The  tax  imposed  in  this  paragraph  (c)  shall  be in
 8    addition to all other taxes imposed by the State of  Illinois
 9    or any unit of local government in this State.
10        (d)  Except  as provided in Section 2a, the collection of
11    a tax based on gallonage of gasoline used for the  propulsion
12    of any aircraft is prohibited on and after October 1, 1979.
13        (e)  The  collection  of a tax, based on gallonage of all
14    products commonly  or  commercially  known  or  sold  as  1-K
15    kerosene,  regardless  of  its  classification  or  uses,  is
16    prohibited  (i)  on and after July 1, 1992 until December 31,
17    1999, except when the 1-K kerosene is either:  (1)  delivered
18    into bulk storage facilities of a bulk user, or (2) delivered
19    directly  into  the  fuel  supply tanks of motor vehicles and
20    (ii) on and after January 1, 2000. Beginning  on  January  1,
21    2000,  the  collection  of  a  tax, based on gallonage of all
22    products commonly  or  commercially  known  or  sold  as  1-K
23    kerosene,  regardless  of  its  classification  or  uses,  is
24    prohibited except when the 1-K kerosene is delivered directly
25    into  a  storage  tank that is located at a facility that has
26    withdrawal facilities that are readily accessible to and  are
27    capable of dispensing 1-K kerosene into the fuel supply tanks
28    of motor vehicles.
29          Any  person  who  sells or uses 1-K kerosene for use in
30    motor vehicles upon which the tax imposed by this Law has not
31    been paid shall be liable for any tax due on the sales or use
32    of 1-K kerosene.
33        (f) Beginning on July 1, 2001, no tax  shall  be  imposed
34    under this Act on alternate fuel, as defined in Section 10 of
 
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 1    the  Alternate Fuels Act, used in motor vehicles operating on
 2    the  public  highways  and   recreational   type   watercraft
 3    operating  on  the  waters of this State.  The exemption from
 4    taxation created by  this  subsection  (f)  shall  remain  in
 5    effect  through  June  30,  2006  or  until the amount of tax
 6    revenue that would have been paid into  the  Motor  Fuel  Tax
 7    Fund,  but  for the provisions of this subsection (f), equals
 8    $9,500,000, whichever occurs first.
 9    (Source: P.A. 91-173, eff. 1-1-00.)

10        (35 ILCS 505/8b new)
11        Sec. 8b.  Transfer of funds.  On July 1  of  2001,  2002,
12    2003,  2004,  and  2005,  the  amount  of $1,900,000 shall be
13    transferred from the General Revenue Fund into the Motor Fuel
14    Tax Fund. The Motor Fuel Tax Fund shall reimburse the General
15    Revenue Fund for the transfers made under this  Section.  The
16    reimbursement shall occur in fiscal year 2007.

17        Section  10.  The  Alternate  Fuels  Act  is  amended  by
18    changing  Sections 25, 30, 35, 40, and 45 and adding Sections
19    21, 31, and 32 as follows:

20        (415 ILCS 120/21 new)
21        Sec. 21.  Alternate Fuel Infrastructure  Advisory  Board.
22    The  Governor  shall appoint an Alternate Fuel Infrastructure
23    Advisory Board.  The Advisory Board shall be chaired  by  the
24    Director.   Other  members  appointed  by  the Governor shall
25    consist of one representative from the ethanol industry,  one
26    representative   from   the   natural   gas   industry,   one
27    representative  from  the  auto  manufacturing  industry, one
28    representative from the liquid petroleum  gas  industry,  one
29    representative  from the Department of Commerce and Community
30    Affairs,  one  representative  from  the  heavy  duty  engine
31    manufacturing  industry,  one  representative  from  Illinois
 
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 1    private fleet operators,  and  one  representative  of  local
 2    government from the Chicago nonattainment area.
 3        The Advisory Board shall (1) prepare and recommend to the
 4    Agency  rules  implementing  Section  31  of  this  Act;  (2)
 5    determine  criteria and procedures to be followed in awarding
 6    grants and review applications for grants under the Alternate
 7    Fuel Infrastructure Program; and (3) make recommendations  to
 8    the Agency as to the award of grants under the Alternate Fuel
 9    Infrastructure Program.
10        Members  of  the  Advisory  Board shall not be reimbursed
11    their costs and expenses of participation.  All decisions  of
12    the  Advisory Board shall be decided on a one vote per member
13    basis with a majority of the  Advisory  Board  membership  to
14    rule.

15        (415 ILCS 120/25)
16        Sec.  25.  Ethanol fuel research program.  The Department
17    of Commerce and Community Affairs shall administer a research
18    program to reduce the costs of producing  ethanol  fuels  and
19    increase  the  viability of ethanol fuels, new ethanol engine
20    technologies, and  ethanol  refueling  infrastructure.   This
21    research  shall be funded from the Alternate Fuels Fund.  The
22    research program shall remain in effect  until  December  31,
23    2003 2002, or until funds are no longer available.
24    (Source:  P.A.  90-726,  eff.  8-7-98; 90-797, eff. 12-15-98;
25    91-357, eff. 7-29-99.)

26        (415 ILCS 120/30)
27        Sec. 30.  Rebate program.   Beginning  January  1,  1997,
28    each  owner of an alternate fuel vehicle shall be eligible to
29    apply for a rebate.  The Agency shall  cause  rebates  to  be
30    issued under the provisions of this Act.  The Alternate Fuels
31    Advisory  Board  shall  develop  and  recommend to the Agency
32    rules that provide incentives or  other  measures  to  ensure
 
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 1    that  small  fleet  operators  and owners participate in, and
 2    benefit from, the rebate program.  Such  rules  shall  define
 3    and  identify small fleet operators and owners in the covered
 4    area and make provisions for the establishment of criteria to
 5    ensure that funds from the Alternate Fuels Fund specified  in
 6    this  Act  are made readily available to these entities.  The
 7    Advisory Board  shall,  in  the  development  of  its  rebate
 8    application  review  criteria, make provisions for preference
 9    to be given to applications proposing a  partnership  between
10    the  fleet operator or owner and a fueling service station to
11    make alternate fuels available to the public.  An  owner  may
12    apply  for  only  one of 3 types of rebates with regard to an
13    individual alternate fuel vehicle:  (i)   a  conversion  cost
14    rebate,  (ii)  an   OEM  differential cost rebate, or (iii) a
15    fuel cost differential rebate.  Only one rebate may be issued
16    with regard to a particular alternate fuel vehicle during the
17    life of that vehicle.  A rebate shall not exceed  $4,000  per
18    vehicle.   Over  the life of this rebate program, an owner of
19    an alternate fuel vehicle may not receive  rebates  for  more
20    than 150 vehicles per location or for 300 vehicles in total.
21        (a)  A  conversion  cost rebate may be issued to an owner
22    or his or her  designee  in  order  to  reduce  the  cost  of
23    converting  of  a  conventional  vehicle to an alternate fuel
24    vehicle.  Conversion of a conventional vehicle  to  alternate
25    fuel  capability must take place in Illinois for the owner to
26    be eligible for the conversion cost rebate.  Amounts spent by
27    applicants within a calendar year may be claimed on a  rebate
28    application  submitted  during  that calendar year.  Approved
29    conversion cost rebates applied  for  during  calendar  years
30    1997,  1998, 1999, 2000, 2001, and 2002, 2003, and 2004 shall
31    be  80%  of  all  approved  conversion  costs   claimed   and
32    documented.  Approval of conversion cost rebates may continue
33    after  calendar  year 2004, if funds are still available.  An
34    applicant may include on an application submitted in 1997 all
 
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 1    amounts spent within that calendar year  on  the  conversion,
 2    even  if  the expenditure occurred before promulgation of the
 3    Agency rules.
 4        (b)  An OEM differential cost rebate may be issued to  an
 5    owner or his or her designee in  order  to  reduce  the  cost
 6    differential between a conventional vehicle or engine and the
 7    same  vehicle  or  engine,  produced by an original equipment
 8    manufacturer, that has the capability to use alternate fuels.
 9        A new OEM vehicle or engine must be purchased in Illinois
10    and must either be an alternate fuel vehicle or  used  in  an
11    alternate  fuel  vehicle,  respectively,  for the owner to be
12    eligible for an OEM differential cost rebate.  Amounts  spent
13    by  applicants  within  a  calendar  year may be claimed on a
14    rebate application submitted during that calendar year.
15        Approved OEM differential cost rebates applied for during
16    calendar years 1997, 1998, 1999, 2000, 2001, and 2002,  2003,
17    and  2004  shall  be  80%  of  all approved cost differential
18    claimed and documented.  Approval of  OEM  differential  cost
19    rebates  may  continue after calendar year 2004, if funds are
20    still available.  An applicant may include on an  application
21    submitted  in  1997  all  amounts  spent within that calendar
22    year on OEM  equipment,  even  if  the  expenditure  occurred
23    before promulgation of the Agency rules.
24        (c)  A  fuel cost differential rebate may be issued to an
25    owner or his or her designee in  order  to  reduce  the  cost
26    differential   between   conventional   fuels   and  domestic
27    renewable  fuels  purchased  to  operate  an  alternate  fuel
28    vehicle that runs on domestic renewable fuel.  The fuel  cost
29    differential  shall  be  based  on  a  3-year life cycle cost
30    analysis developed by the Agency by rulemaking.   The  rebate
31    shall  apply  to  and  be payable during a consecutive 3-year
32    period commencing on the date the application is approved  by
33    the  Agency.   Approved fuel cost differential rebates may be
34    applied for during calendar years 1997, 1998, 1999, 2000, and
 
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 1    2001, and 2002 and approved rebates shall be 80% of the  cost
 2    differential  for  a  consecutive 3-year period.  Approval of
 3    fuel cost differential rebates may  continue  after  calendar
 4    year  2002  if funds are still available. Twenty-five percent
 5    of the amount appropriated under Section 40  to  be  used  to
 6    fund  the programs authorized by this Section during calendar
 7    year 1998 shall be designated to fund fuel cost  differential
 8    rebates.   If  the  total dollar amount of approved fuel cost
 9    differential rebate applications as of  October  1,  1998  is
10    less  than  the amount designated for that calendar year, the
11    balance of designated funds shall be immediately available to
12    fund any rebate authorized by this Section  and  approved  in
13    the   calendar   year.    An  applicant  may  include  on  an
14    application submitted in 1997 all amounts spent  within  that
15    calendar   year  on  fuel  cost  differential,  even  if  the
16    expenditure occurred before the promulgation  of  the  Agency
17    rules.
18        Twenty-five  percent  of  the  amount  appropriated under
19    Section 40 to be used to fund the programs authorized by this
20    Section during calendar year 1999 shall be designated to fund
21    fuel cost differential rebates.  If the total  dollar  amount
22    of  approved fuel cost differential rebate applications as of
23    July 1, 1999 is less than  the  amount  designated  for  that
24    calendar  year,  the  balance  of  designated  funds shall be
25    immediately available to fund any rebate authorized  by  this
26    Section and approved in the calendar year.
27        Twenty-five  percent  of  the  amount  appropriated under
28    Section 40 to be used to fund  programs  authorized  by  this
29    Section during calendar year 2000 shall be designated to fund
30    fuel  cost  differential rebates.  If the total dollar amount
31    of approved fuel cost differential rebate applications as  of
32    July  1,  2000  is  less  than the amount designated for that
33    calendar year, the  balance  of  designated  funds  shall  be
34    immediately  available  to fund any rebate authorized by this
 
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 1    Section and approved in the calendar year.
 2        Twenty-five percent of the amount  that  is  appropriated
 3    under  Section  40  to be used to fund programs authorized by
 4    this Section during calendar year 2001 shall be designated to
 5    fund fuel cost differential rebates.   If  the  total  dollar
 6    amount of approved fuel cost differential rebate applications
 7    as  of  July  1,  2001 is less than the amount designated for
 8    that calendar year, the balance of designated funds shall  be
 9    immediately  available  to fund any rebate authorized by this
10    Section and approved in the calendar year.
11        Twenty-five percent of the amount  that  is  appropriated
12    under  Section  40  to be used to fund programs authorized by
13    this Section during calendar year 2002 shall be designated to
14    fund fuel cost differential rebates.   If  the  total  dollar
15    amount of approved fuel cost differential rebate applications
16    as  of  July  1,  2002 is less than the amount designated for
17    that calendar year, the balance of designated funds shall  be
18    immediately  available  to fund any rebate authorized by this
19    Section and approved in the calendar year.
20        An approved fuel cost differential rebate shall  be  paid
21    to  an  owner  in  3  annual  installments  on  or  about the
22    anniversary date of the approval of the application.   Owners
23    receiving  a  fuel cost differential rebate shall be required
24    to demonstrate, through  recordkeeping, the use  of  domestic
25    renewable  fuels  during  the 3-year period commencing on the
26    date the application is  approved  by  the  Agency.   If  the
27    alternate  fuel  vehicle  ceases  to  be  registered  to  the
28    original  applicant  owner,  a  prorated installment shall be
29    paid to that owner or the owner's designee and the  remainder
30    of the rebate shall be canceled.
31        (d)  Vehicles owned by the federal government or vehicles
32    registered  in  a state outside Illinois are not eligible for
33    rebates.
34    (Source: P.A. 89-410; 90-726, eff. 8-7-98.)
 
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 1        (415 ILCS 120/31 new)
 2        Sec. 31.  Alternate  Fuel  Infrastructure  Program.   The
 3    Environmental  Protection  Agency  shall  establish  a  grant
 4    program  to  provide  funding  for the building of E85 blend,
 5    propane, and compressed natural gas (CNG) fueling facilities,
 6    including private on-site fueling  facilities,  to  be  built
 7    within  the  covered  area  or in Illinois metropolitan areas
 8    over 100,000 in population.  The Agency shall be  responsible
 9    for  reviewing  the proposals and awarding the grants.  Under
10    the grant program, applicants may apply for up to 80% of  the
11    total  cost  of the project.  At least  20% of the total cost
12    of the project must be provided by the applicant in  cash  or
13    material.   Subject  to  appropriation,  the  total amount of
14    grants under the program shall not exceed $6,000,000. For the
15    period beginning July 1, 2001 and ending June 30,  2004,  the
16    available   grant   money  shall  be  allocated  as  follows:
17    $2,000,000 for building ethanol fueling stations,  $2,000,000
18    for  building  propane  fueling  stations, and $2,000,000 for
19    building CNG fueling stations.   Any  available  grant  money
20    remaining on July 1, 2004 may be used, until July 1, 2005, to
21    make grants for any of the 3 types of fueling stations.

22        (415 ILCS 120/32 new)
23        Sec.    32.    Clean   Fuel   Education   Program.    The
24    Environmental Protection  Agency,  in  cooperation  with  the
25    Department of Commerce and Community Affairs and Chicago Area
26    Clean  Cities,  shall  administer  the  Clean  Fuel Education
27    Program,  the  purpose  of  which   is   to   educate   fleet
28    administrators  and  Illinois' citizens about the benefits of
29    using alternate fuels.  The program  shall  include  a  media
30    campaign.   Subject   to  appropriation,  $100,000  shall  be
31    allocated to the Environmental Protection Agency in  each  of
32    fiscal  years  2002  through  2006  to fund the program.  The
33    Agency may use up  to  $20,000  annually  for  administrative
 
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 1    costs of the program.

 2        (415 ILCS 120/35)
 3        Sec. 35.  User fees; transfer of funds.
 4        (a)  During  fiscal  years 1999, 2000, and 2001, and 2002
 5    the Office of the Secretary of  State  shall  collect  annual
 6    user  fees  from  any  individual,  partnership, association,
 7    corporation, or agency of the United States  government  that
 8    registers  any  combination  of  10  or more of the following
 9    types of motor vehicles in the Covered Area:   (1)   Vehicles
10    of  the  First  Division,  as defined in the Illinois Vehicle
11    Code; (2)  Vehicles of the Second Division  registered  under
12    the  B,  D,  F, H, MD, MF, MG, MH and MJ plate categories, as
13    defined in the Illinois Vehicle Code; and (3)  Commuter  vans
14    and  livery vehicles as defined in the Illinois Vehicle Code.
15    This Section does not apply to vehicles registered under  the
16    International  Registration Plan under Section 3-402.1 of the
17    Illinois Vehicle Code. The user fee shall  be  $20  for  each
18    vehicle  registered in the Covered Area for each fiscal year.
19    The Office of the Secretary of State shall  collect  the  $20
20    when a vehicle's registration fee is paid.
21        (b)  Owners   of  State,  county,  and  local  government
22    vehicles,  rental  vehicles,   antique   vehicles,   electric
23    vehicles,  and  motorcycles  are  exempt from paying the user
24    fees on such vehicles.
25        (c)  The Office of the Secretary of State  shall  deposit
26    the user fees collected into the Alternate Fuels Fund.
27        (d)  On July 1 of 2001 and 2002, the amount of $6,100,000
28    shall  be  transferred from the General Revenue Fund into the
29    Alternate Fuels  Fund.   On  July  1,  2003,  the  amount  of
30    $3,100,000 shall be transferred from the General Revenue Fund
31    into  the  Alternate Fuels Fund.  On July 1 of 2004 and 2005,
32    the amount of $100,000 shall be transferred from the  General
33    Revenue Fund into the Alternate Fuels Fund.
 
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 1    (Source: P.A. 89-410; 90-726, eff. 8-7-98.)

 2        (415 ILCS 120/40)
 3        Sec.  40.  Appropriations  from the Alternate Fuels Fund.
 4    The Agency shall estimate the amount of user fees expected to
 5    be collected for fiscal years 1999, 2000, and 2001, and 2002.
 6    Moneys shall be  deposited  into  and  distributed  from  the
 7    Alternate Fuels Fund in the following manner:
 8        (1)  In  each of fiscal years 1999, 2000, 2001, and 2002,
 9    2003, and 2004 an  amount  not  to  exceed  $200,000  may  be
10    appropriated  to  the Agency from the Alternate Fuels Fund to
11    pay its costs of administering the   programs  authorized  by
12    this  Act.  Additional  appropriations to the Agency from the
13    Alternate Fuels Fund to pay its costs  of  administering  the
14    programs  authorized  by this Act may be made in fiscal years
15    following 2004, not to exceed the amount of $200,000  in  any
16    fiscal  year,  if funds are still available and program costs
17    are still being incurred. Up to $200,000 may be  appropriated
18    to  the  Office  of  the Secretary of State in each of fiscal
19    years 1999, 2000, and 2001, and 2002 from the Alternate Fuels
20    Fund to pay the Secretary of State's costs  of  administering
21    the programs authorized under this Act.
22        (2)  In  fiscal  year  1999,  after  appropriation of the
23    amounts authorized by paragraph  (1),  the  remaining  moneys
24    estimated  to  be  collected during fiscal year 1999 shall be
25    appropriated as follows:  80% of each such  remaining  moneys
26    shall  be  appropriated  to  fund  the programs authorized in
27    Section 30 and 20% shall be appropriated to fund the programs
28    authorized in Section 25.
29        (2.5)  Beginning in fiscal year  2002,  moneys  from  the
30    Fund  may be used, subject to appropriation, for the purposes
31    of implementing Sections 31 and 32  of  this  Act,  including
32    necessary administrative costs.
33        (3)  In fiscal years 2000, 2001, and 2002, 2003, and 2004
 
                            -12-               LRB9201200LBgc
 1    after  appropriation  of the amounts authorized by paragraphs
 2    paragraph (1) and (2.5), the remaining  estimated  amount  of
 3    moneys  remaining  in  the  Fund  user  fees  expected  to be
 4    collected shall be appropriated  as  follows:   80%  of  such
 5    estimated  moneys  shall be appropriated to fund the programs
 6    authorized in Section 30 and 20%  shall  be  appropriated  to
 7    fund the programs authorized in Section 25.
 8        (4)  Moneys  appropriated to fund the programs authorized
 9    in Sections 25 and 30 shall be expended only after they  have
10    been collected and deposited into the Alternate Fuels Fund.
11    (Source: P.A. 89-410; 90-726, eff. 8-7-98.)

12        (415 ILCS 120/45)
13        Sec. 45.  Alternate Fuels Fund; creation; deposit of user
14    fees.   A  separate  fund  in  the  State Treasury called the
15    Alternate  Fuels  Fund  is  created,  into  which  shall   be
16    transferred  the  user fees as provided in Section 35 and any
17    other revenues, deposits,  appropriations,  or  transfers  as
18    provided by law.
19    (Source: P.A. 89-410.)

20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law.

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