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92nd General Assembly

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Public Act 92-0858

HB0002 Re-Enrolled                             LRB9201200LBgc

    AN ACT in relation to alternate fuels.

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

    Section  5.  The  Alternate  Fuels  Act  is  amended   by
changing  Sections  10,  25,  30,  35,  40, and 45 and adding
Sections 21, 31, and 32 as follows:

    (415 ILCS 120/10)
    Sec. 10.  Definitions.  As used in this Act:
    "Agency" means the Environmental Protection Agency.
    "Alternate fuel" means liquid petroleum gas, natural gas,
E85 blend fuel, fuel  composed  of  a  minimum  80%  ethanol,
bio-based methanol, fuels that are at least 70%  derived from
biomass,   or   electricity,   excluding   on-board  electric
generation.
    "Alternate  fuel  vehicle"  means  any  vehicle  that  is
operated in Illinois and is capable  of  using  an  alternate
fuel.
    "Conventional",  when  used to modify the word "vehicle",
"engine",  or  "fuel",  means  gasoline  or  diesel  or   any
reformulations of those fuels.
    "Covered  Area" means the counties of Cook, DuPage, Kane,
Lake, McHenry, and Will and those portions of  Grundy  County
and  Kendall  County  that  are included in the following ZIP
code areas, as designated by the U.S. Postal Service  on  the
effective  date of this amendatory Act of 1998: 60416, 60444,
60447, 60450, 60481, 60538, and 60543.
    "Director"  means  the  Director  of  the   Environmental
Protection Agency.
    "Domestic  renewable  fuel" means a fuel, produced in the
United States, composed of a minimum 80%  ethanol,  bio-based
methanol, and fuels derived from bio-mass.
    "E85 blend fuel" means fuel that contains 85% ethanol and
15% gasoline.
    "GVWR" means Gross Vehicle Weight Rating.
    "Location"  means  (i)  a parcel of real property or (ii)
multiple,  contiguous  parcels  of  real  property  that  are
separated by private roadways, public roadways, or private or
public rights-of-way and  are  owned,  operated,  leased,  or
under common control of one party.
    "Original   equipment  manufacturer"  or  "OEM"  means  a
manufacturer of alternate fuel vehicles or a manufacturer  or
remanufacturer  of  alternate  fuel  engines used in vehicles
greater than 8500 pounds GVWR.
    "Rental vehicle" means any motor vehicle that is owned or
controlled primarily for the purpose of short-term leasing or
rental pursuant to a contract.
(Source: P.A. 90-726, eff.  8-7-98;  90-797,  eff.  12-15-98;
91-357, eff. 7-29-99.)

    (415 ILCS 120/21 new)
    Sec.  21.   Alternate Fuel Infrastructure Advisory Board.
The Governor shall appoint an Alternate  Fuel  Infrastructure
Advisory  Board.   The Advisory Board shall be chaired by the
Director of the Department of Commerce and Community Affairs,
who may be represented at all meetings by a designee.   Other
members appointed  by  the  Governor  shall  consist  of  one
representative  from the ethanol industry, one representative
from the natural gas industry, one  representative  from  the
auto  manufacturing  industry,  one  representative  from the
liquid petroleum gas industry, one  representative  from  the
Agency,   one  representative  from  the  heavy  duty  engine
manufacturing  industry,  one  representative  from  Illinois
private fleet operators,  and  one  representative  of  local
government from the Chicago nonattainment area.
    The Advisory Board shall (1) prepare and recommend to the
Department  of  Commerce  and  Community  Affairs  a  program
implementing  Section  31  of  this  Act  and  (2)  recommend
criteria and procedures to be followed in awarding grants.
    Members  of  the  Advisory  Board shall not be reimbursed
their costs and expenses of participation.  All decisions  of
the  Advisory Board shall be decided on a one vote per member
basis with a majority of the  Advisory  Board  membership  to
rule.

    (415 ILCS 120/25)
    Sec.  25.  Ethanol fuel research program.  The Department
of Commerce and Community Affairs shall administer a research
program to reduce the costs of producing  ethanol  fuels  and
increase  the  viability of ethanol fuels, new ethanol engine
technologies, and  ethanol  refueling  infrastructure.   This
research  shall be funded from the Alternate Fuels Fund.  The
research  program  shall  remain  in   effect,   subject   to
appropriation  after  calendar  year  until December 31, 2004
2002, or until funds are no longer available.
(Source: P.A. 90-726, eff.  8-7-98;  90-797,  eff.  12-15-98;
91-357, eff. 7-29-99.)

    (415 ILCS 120/30)
    Sec. 30.  Rebate program.  Beginning January 1, 1997, and
as  long  as  funds are available, each owner of an alternate
fuel vehicle shall be eligible to apply for  a  rebate.   The
Agency  shall cause rebates to be 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 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
applications   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 apply
for only one  of  3  types  of  rebates  with  regard  to  an
individual  alternate  fuel  vehicle:  (i)  a conversion cost
rebate, (ii) an  OEM differential cost  rebate,  or  (iii)  a
fuel cost differential rebate.  Only one rebate may be issued
with regard to a particular alternate fuel vehicle during the
life  of  that vehicle.  A rebate shall not exceed $4,000 per
vehicle.  Over the life of this rebate program, an  owner  of
an  alternate  fuel  vehicle may not receive rebates for more
than 150 vehicles per location or for 300 vehicles in total.
    (a)  A conversion cost rebate may be issued to  an  owner
or  his  or  her  designee  in  order  to  reduce the cost of
converting of a conventional vehicle  to  an  alternate  fuel
vehicle.   Conversion  of a conventional vehicle to alternate
fuel capability must take place in Illinois for the owner  to
be eligible for the conversion cost rebate.  Amounts spent by
applicants  within a calendar year may be claimed on a rebate
application submitted during that  calendar  year.   Approved
conversion  cost rebates applied for during or after calendar
year years 1997, 1998, 1999, 2000, 2001, and  2002  shall  be
80%  of all approved conversion costs claimed and documented.
Approval  of  conversion  cost  rebates  may  continue  after
calendar  year  2002,  if  funds  are  still  available.   An
applicant may include on an application submitted in 1997 all
amounts spent within that calendar year  on  the  conversion,
even  if  the expenditure occurred before promulgation of the
Agency rules.
    (b)  An OEM differential cost rebate may be issued to  an
owner or his or her designee in  order  to  reduce  the  cost
differential between a conventional vehicle or engine and the
same  vehicle  or  engine,  produced by an original equipment
manufacturer, that has the capability to use alternate fuels.
    A new OEM vehicle or engine must be purchased in Illinois
and must either be an alternate fuel vehicle or  used  in  an
alternate  fuel  vehicle,  respectively,  for the owner to be
eligible for an OEM differential cost rebate.  Amounts  spent
by  applicants  within  a  calendar  year may be claimed on a
rebate application submitted during that calendar year.
    Approved OEM differential cost rebates applied for during
or after calendar year years 1997, 1998,  1999,  2000,  2001,
and  2002  shall  be  80%  of  all approved cost differential
claimed and documented.  Approval of  OEM  differential  cost
rebates  may  continue after calendar year 2002, if funds are
still available.  An applicant may include on an  application
submitted  in  1997  all  amounts  spent within that calendar
year on OEM  equipment,  even  if  the  expenditure  occurred
before promulgation of the Agency rules.
    (c)  A  fuel cost differential rebate may be issued to an
owner or his or her designee in  order  to  reduce  the  cost
differential   between   conventional   fuels   and  domestic
renewable  fuels  purchased  to  operate  an  alternate  fuel
vehicle that runs on domestic renewable fuel.  The fuel  cost
differential  shall  be  based  on  a  3-year life cycle cost
analysis developed by the Agency by rulemaking.   The  rebate
shall  apply  to  and  be payable during a consecutive 3-year
period commencing on the date the application is approved  by
the  Agency.   Approved fuel cost differential rebates may be
applied for during or after calendar year years  1997,  1998,
1999, 2000, and 2001 and approved rebates shall be 80% of the
cost  differential for a consecutive 3-year period.  Approval
of fuel cost differential rebates may continue after calendar
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.
    Twenty-five  percent  of  the amount that is appropriated
under Section 40 to be used to fund  programs  authorized  by
this Section during calendar year 2001 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, 2001 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  approved  fuel cost differential rebate shall be paid
to an  owner  in  3  annual  installments  on  or  about  the
anniversary  date of the approval of the application.  Owners
receiving a fuel cost differential rebate shall  be  required
to  demonstrate,  through  recordkeeping, the use of domestic
renewable fuels during the 3-year period  commencing  on  the
date  the  application  is  approved  by  the Agency.  If the
alternate  fuel  vehicle  ceases  to  be  registered  to  the
original applicant owner, a  prorated  installment  shall  be
paid  to that owner or the owner's designee and the remainder
of the rebate shall be canceled.
    (d)  Vehicles owned by the federal government or vehicles
registered in a state outside Illinois are not  eligible  for
rebates.
(Source: P.A. 89-410; 90-726, eff. 8-7-98.)

    (415 ILCS 120/31 new)
    Sec.  31.  Alternate Fuel Infrastructure Program. Subject
to appropriation, the Department of  Commerce  and  Community
Affairs  shall  establish  a grant program to provide funding
for the  building  of  E85  blend,  propane,  and  compressed
natural  gas  (CNG)  fueling  facilities,  including  private
on-site  fueling  facilities,  to be built within the covered
area or  in  Illinois  metropolitan  areas  over  100,000  in
population.  The Department of Commerce and Community Affairs
shall be responsible for reviewing the proposals and awarding
the grants.
    (415 ILCS 120/32 new)
    Sec.  32.   Clean  Fuel  Education  Program.   Subject to
appropriation,  the  Department  of  Commerce  and  Community
Affairs, in cooperation with  the  Agency  and  Chicago  Area
Clean  Cities,  shall  administer  the  Clean  Fuel Education
Program,  the  purpose  of  which   is   to   educate   fleet
administrators  and  Illinois' citizens about the benefits of
using alternate fuels.  The program  shall  include  a  media
campaign.

    (415 ILCS 120/35)
    Sec. 35.  User fees.
    (a)  During  fiscal years 1999, 2000, 2001, and 2002  the
Office of the Secretary of State shall  collect  annual  user
fees   from   any   individual,   partnership,   association,
corporation,  or  agency of the United States government that
registers any combination of 10  or  more  of  the  following
types  of  motor vehicles in the Covered Area:  (1)  Vehicles
of the First Division, as defined  in  the  Illinois  Vehicle
Code;  (2)   Vehicles of the Second Division registered under
the B, D, F, H, MD, MF, MG, MH and MJ  plate  categories,  as
defined  in the Illinois Vehicle Code; and (3)  Commuter vans
and livery vehicles as defined in the Illinois Vehicle  Code.
This  Section does not apply to vehicles registered under the
International Registration Plan under Section 3-402.1 of  the
Illinois  Vehicle  Code.  The  user fee shall be $20 for each
vehicle registered in the Covered Area for each fiscal  year.
The  Office  of  the Secretary of State shall collect the $20
when a vehicle's registration fee is paid.
    (b)  Owners  of  State,  county,  and  local   government
vehicles,   rental   vehicles,   antique  vehicles,  electric
vehicles, and motorcycles are exempt  from  paying  the  user
fees on such vehicles.
    (c)  The  Office  of the Secretary of State shall deposit
the user fees collected into the Alternate Fuels Fund.
(Source: P.A. 89-410; 90-726, eff. 8-7-98.)

    (415 ILCS 120/40)
    Sec. 40.  Appropriations from the Alternate Fuels Fund.
    (a)  User Fees  Funds.  The  Agency  shall  estimate  the
amount of user fees expected to be collected under Section 35
of  this  Act  for  fiscal  years 1999, 2000, 2001, and 2002.
User fee funds shall be deposited into and  distributed  from
the Alternate Fuels Fund in the following manner:
         (1)  In  each  of fiscal years 1999, 2000, 2001, and
    2002,  an  amount  not  to   exceed   $200,000   may   be
    appropriated  to the Agency from the Alternate Fuels Fund
    to pay its costs of administering the programs authorized
    by Section  30  of  this  Act.  Up  to  $200,000  may  be
    appropriated  to  the Office of the Secretary of State in
    each of fiscal years 1999, 2000, 2001, and 2002 from  the
    Alternate  Fuels  Fund  to  pay  the Secretary of State's
    costs of administering the programs authorized under this
    Act.
         (2)  In fiscal years 1999,  2000,  2001,  and  2002,
    after appropriation of the amounts authorized by item (1)
    of  subsection  (a) of this Section, the remaining moneys
    estimated to be collected during each fiscal  year  shall
    be  appropriated  as follows: 80% of the remaining moneys
    shall be appropriated to fund the programs authorized  by
    Section  30,  and  20%  shall be appropriated to fund the
    programs authorized by Section 25.
         (3)  Additional appropriations to  the  Agency  from
    the   Alternate   Fuels   Fund   to   pay  its  costs  of
    administering the programs authorized by  Section  30  of
    this  Act may be made in fiscal years following 2002, not
    to exceed the amount of $200,000 in any fiscal  year,  if
    funds  are  still  available  and program costs are still
    being incurred.
         (4)  Moneys  appropriated  to  fund   the   programs
    authorized  in  Sections 25 and 30 shall be expended only
    after they have been collected  and  deposited  into  the
    Alternate Fuels Fund.
    (b)  General Revenue Fund Appropriations. General Revenue
Fund amounts appropriated to and deposited into the Alternate
Fuels Fund shall be distributed from the Alternate Fuels Fund
in the following manner:
         (1)  In  each  of  fiscal  years  2003  and 2004, an
    amount not to exceed $50,000 may be appropriated  to  the
    Department  of  Commerce  and  Community Affairs from the
    Alternate Fuels Fund to pay its  costs  of  administering
    the programs authorized by Sections 31 and 32.
         (2)  In  each  of  fiscal  years  2003  and 2004, an
    amount not to exceed $50,000 may be appropriated  to  the
    Department  of Commerce and Community Affairs to fund the
    programs authorized by Section 32.
         (3)  In each of fiscal years 2003  and  2004,  after
    appropriation  of the amounts authorized in items (1) and
    (2) of subsection (b)  of  this  Section,  the  remaining
    moneys  received  from  the General Revenue Fund shall be
    appropriated as follows: 52.632% of the remaining  moneys
    shall  be appropriated to fund the programs authorized by
    Sections 25 and 30 and 47.368% of  the  remaining  moneys
    shall  be appropriated to fund the programs authorized by
    Section  31.     The  moneys  appropriated  to  fund  the
    programs authorized by Sections 25 and 30 shall  be  used
    as  follows:  20%  shall  be  used  to  fund the programs
    authorized by Section 25, and 80% shall be used  to  fund
    the programs authorized by Section 30.
    Moneys  appropriated  to  fund the programs authorized in
Section 31 shall  be  expended  only  after  they  have  been
deposited into the Alternate Fuels Fund.
    The  Agency  shall  estimate  the  amount  of  user  fees
expected  to  be collected for fiscal years 1999, 2000, 2001,
and 2002.  Moneys shall be  deposited  into  and  distributed
from the Alternate Fuels Fund in the following manner:
    (1)  In  each  of  fiscal years 1999, 2000, 2001, 2002 an
amount not to exceed $200,000  may  be  appropriated  to  the
Agency  from  the  Alternate  Fuels  Fund to pay its costs of
administering the  programs authorized by  this  Act.  Up  to
$200,000  may  be appropriated to the Office of the Secretary
of State in each of fiscal years 1999, 2000, 2001,  and  2002
from the Alternate Fuels Fund to pay the Secretary of State's
costs  of  administering  the  programs authorized under this
Act.
    (2)  In fiscal year  1999,  after  appropriation  of  the
amounts  authorized  by  paragraph  (1), the remaining moneys
estimated to be collected during fiscal year  1999  shall  be
appropriated  as  follows:  80% of each such remaining moneys
shall be appropriated to  fund  the  programs  authorized  in
Section 30 and 20% shall be appropriated to fund the programs
authorized in Section 25.
    (3)  In   fiscal   years  2000,  2001,  and  2002,  after
appropriation of the amounts authorized by paragraph (1), the
remaining estimated  amount  of  user  fees  expected  to  be
collected  shall  be  appropriated  as  follows:  80% of such
estimated moneys shall be appropriated to fund  the  programs
authorized  in  Section  30  and 20% shall be appropriated to
fund the programs authorized in Section 25.
    (4)  Moneys appropriated to fund the programs  authorized
in  Sections 25 and 30 shall be expended only after they have
been collected and deposited into the Alternate Fuels Fund.
(Source: P.A. 89-410; 90-726, eff. 8-7-98.)

    (415 ILCS 120/45)
    Sec. 45.  Alternate Fuels Fund; creation; deposit of user
fees.  A separate fund  in  the  State  Treasury  called  the
Alternate   Fuels  Fund  is  created,  into  which  shall  be
transferred the user fees as provided in Section 35  and  any
other     revenues,     deposits,    State    appropriations,
contributions, grants, gifts, bequests, legacies of money and
securities, or transfers as provided  by  law  from,  without
limitation,    governmental    entities,   private   sources,
foundations, trade associations, industry organizations,  and
not-for-profit organizations.
(Source: P.A. 89-410.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.
    Passed in the General Assembly June 02, 2002.
    Governor Amendatory Veto August 28, 2002.
    General Assembly Accepts Amendatory Veto December 04, 2002.
    Returned to Governor for Certification December 11, 2002.
    Governor Certifies Changes January 03, 2003.

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