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92_HB0002gms
STATE OF ILLINOIS
OFFICE OF THE GOVERNOR
SPRINGFIELD, 62706
GEORGE H. RYAN
GOVERNOR
August 28, 2002
To the Honorable Members of the
Illinois House of Representatives
92nd General Assembly
Pursuant to the authority vested in the Governor by
Article IV, Section 9(e) of the Illinois Constitution of
1970, and re-affirmed by the People of the State of Illinois
by popular referendum in 1974, and conforming to the standard
articulated by the Illinois Supreme Court in People ex Rel.
Klinger v. Howlett, 50 Ill. 2d 242 (1972), Continental
Illinois National Bank and Trust Co. v. Zagel, 78 Ill. 2d 387
(1979), People ex Rel. City of Canton v. Crouch, 79 Ill. 2d
356 (1980), and County of Kane v. Carlson, 116 Ill. 2d 186
(1987), that gubernatorial action be consistent with the
fundamental purposes and the intent of the bill, I hereby
return House Bill 2 entitled "AN ACT in relation to alternate
fuels," with my specific recommendations for change.
House Bill 2 contains important provisions to further
promote the use of clean alternative fuels in the State,
especially in the Chicago area, fostering research, outreach
and facility construction for the ethanol and alternative
fuel industry. The existing programs for alternate fuel
rebates and ethanol research, which will sunset in December
of this year, are extended until 2004. In addition, House
Bill 2 creates the Alternate Fuel Infrastructure Program and
provides that the Department of Commerce and Community
Affairs (DCCA) shall administer a Clean Fuel Education
Program. House Bill 2 also creates an Alternate Fuel
Infrastructure Advisory Board to provide private sector input
into the State's efforts to expand the alternate fuel
industry in Illinois.
House Bill 2 is the product of cooperative efforts of
industry representatives, IEPA, DCCA and state legislators to
provide state programming for alternative fuel development,
research, facility and continuation of the Clean Fuels Fleet
program. Each of these initiatives serves to foster vital
components of the alternative fuel industry in Illinois. The
State can play a pivotal role in securing the expansion of
alternative fuel production and use, bringing both economic
and environmental benefits to the State of Illinois.
However, the language in House Bill 2, as passed by the
General Assembly, creates significant fiscal and legal
implications for the State of Illinois. House Bill 2
eliminates the existing funding structure for Fiscal Year
2002, exposing the State to possible litigation for user fees
collected and expended during this period. In addition, House
Bill 2 mandates that the state agencies continue operation of
the existing rebate and education programs and establish new
infrastructure and research programs without any identified
funding source. House Bill 2 does provide the authority for
agencies to accept funds from outside sources for these
programs. However, the legislation restricts the distribution
of these private contributions, with no consideration for the
delegation of funds desired by the funding source. Finally,
House Bill 2 establishes an essential advisory board to
accommodate private sector involvement, but provides this
"advisory" board with excessive levels of authority, allowing
the independent board members to determine distribution of
state funds with no oversight by state agencies or the
General Assembly.
I urge the General Assembly to continue the State's
efforts to support and expand the alternative fuel industry
in Illinois. However, any time we create new programs and
mandate the continuation of existing programs, it is
essential that the State be fiscally responsible and, when
possible, provide sufficient funding sources for the programs
we stand behind.
For these reasons, I hereby return House Bill 2 with the
following recommendations for change:
on page 1, line 13, by replacing "electricity.", with
"electricity, excluding on-board electric generation..";
and
on page 3, line 1, by replacing "Act; (2) determine" with
"Act and (2) recommend"; and
on page 3, line 2, by replacing "grants and review" with
"grants."; and
on page 3, by deleting lines 3 through 6; and
on page 3, by replacing line 19 with "research program
shall remain in effect, subject to appropriation after
calendar year until December 31,'; and
on page 3, line 24, after "1997,", by inserting "and as
long as funds are available,"; and
on page 3, by replacing lines 27 through 32 with the
following:
"issued under the provisions of this Act. The Alternate
fuels Advisory Board shall develop and recommend to the
Agency rules that provide incentives or other measures
to ensure that small fleet operators and owners
participate in, and benefit from, the rebate program.
Such rules shall define and identify small fleet
operators and owners in the covered"; and
on page 4, by replacing lines 1 through 8 with the
following:
"area and make provisions for the establishment of
criteria to ensure that funds from the Alternate Fuels
Fund specified in this Act are made readily available to
these entities. The Advisory Board shall, in the
development of its rebate application review criteria,
make provisions for preference to be given to
application proposing a partnership between the fleet
operator or owner and a fueling service station to make
alternate fuels available to the public. An owner may;
and
on page 4, by replacing lines 26 and 27 with the
following:
"conversion cost rebates applied for during or after
calendar year years 1997,1998, 1999, 2000, 2001, and
2002 shall"; and
on page 4, line 30, by replacing "2004," with "2002,";
and
on page 5, by replacing lines 13 and 14 with the
following:
"or after calendar year years 1997, 1998, 1999, 2000,
2001, and 2002 shall be 80% of all approved cost
differential"; and
on page 5, line 16, by replacing "2004," with "2002,";
and
on page 5, by replacing lines 31 and 32 with the
following:
"applied for during or after calendar year years 1997,
1998, 1999, 2000, and 2001 and approved rebates shall be
80% of the cost"; and
on page 6, by replacing lines 1 through 32 with the
following:
"year 2002 if funds are still available. Twenty-five
percent of the amount appropriated under Section 40 to
be used to fund the programs authorized by this Section
during calendar year 1998 shall be designated to fund
fuel cost differential rebates. If the total dollar
amount of approved fuel cost differential rebate
applications as of October 1, 1998 is less than the
amount designated for that calendar year, the balance of
designated funds shall be immediately available to fund
any rebate authorized by this Section and approved in
the calendar year. An applicant may include on an
application submitted in 1997 all amounts spent within
that calendar year on fuel cost differential, even if
the expenditure occurred before the promulgation of the
Agency rules. Twenty-five percent of the amount
appropriated under Section 40 to be used to fund the
programs authorized by this Section during calendar year
1999 shall be designated to fund fuel cost differential
rebates. If the total dollar amount of approved fuel
cost differential rebate applications as of July 1, 1999
is less than the amount designated for that calendar
year, the balance of designated funds shall be
immediately available to fund any rebate authorized by
this Section and approved in the calendar year.
Twenty-five percent of the amount appropriated under
Section 40 to be used to fund programs authorized by
this Section during calendar year 2000 shall be
designated to fund fuel cost differential rebates. If
the total dollar amount of approved fuel cost
differential rebate applications as of July 1, 2000 is
less than the amount designated for that calendar year,
the balance of designated funds shall be immediately
available to fund any rebate authorized by this Section
and approved in the calendar year."; and
on page 7, line 24 by replacing "The" with "Subject to
appropriation, the"; and
on page 7, line 32, by deleting "Under the grant
program,"; and
on page 7, by deleting line 33; and
on page 8, by deleting line 1 and 2; and
on page 8, line 4, by replacing "The" with "Subject to
appropriate, the"; and
on page 8, by replacing line 13, with the following:
"(a) During fiscal years 1999, 2000, 2001, and
2002"; and
on page 9, lines 9, 12, 18, and 21 by replacing "and
2001" with "2001, and 2002" each time it appears; and
on page 9, line 32 by replacing "2001, with "2002,"; and
on page 10, lines 11, 16, and 20, by replacing "2002,
2003," with "2003" each time it appears; and
on page 11, by deleting lines 2 through 15; and
on page 11, line 16, by deleting "(d) Blank.".
With these changes, House Bill 2 will have my approval. I
respectfully request your concurrence.