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91_SB0074ham001
LRB9101571DHmgam01
1 AMENDMENT TO SENATE BILL 74
2 AMENDMENT NO. . Amend Senate Bill 74 as follows:
3 by replacing the title with the following:
4 "AN ACT to create the Illinois Farm Economic Development
5 and Renewable Fuel Act."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 1. Short title. This Act may be cited as the
9 Illinois Farm Economic Development and Renewable Fuel Act.
10 Section 5. Findings. The legislature finds and declares
11 that it is in the interest of the people of this State that
12 the establishment of local grain processing centers be
13 encouraged in order to augment local agricultural markets,
14 promote agricultural diversification, expand rural employment
15 opportunities, promote economic activity, enhance the
16 environment, and protect and better use the land and
17 agricultural resources of the State.
18 The legislature finds that grain processing shall be
19 considered an agricultural pursuit for the purposes of any
20 laws that apply to or provide for the advancement, benefit,
21 or protection of the agriculture industry of the State.
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1 Section 10. Purpose. The purpose of the Act is to
2 improve the environment, create jobs and rural economic
3 growth, and encourage energy self-reliance through the
4 establishment of community-sized grain processing centers
5 which produce ethyl alcohol and other grain products,
6 encourage the establishment of associated industries, and
7 assist Illinois farmers in expanding local markets for their
8 grain production.
9 Section 15. Definitions. For the purpose of this Act:
10 (a) "Associated industry" means an industry using the
11 by-products of a processing center, including, but not
12 limited to, ethyl alcohol, fermented grains, liquid feeds,
13 carbon dioxide, heat, or any other product resulting from the
14 processing of agricultural products and located in proximity
15 to the processing center.
16 (b) "Corn means Illinois produced corn used in a
17 processing center to make ethyl alcohol, fermented grains,
18 solubles, and carbon dioxide.
19 (c) "Department" means the Department of Agriculture.
20 (d) "Director" means the Director of Agriculture.
21 (e) "Ethyl alcohol" means fermentation ethyl alcohol
22 having a purity of at least 95% (190 proof) and derived from
23 agricultural products, including potatoes, cereal grains,
24 cheese, whey, and sugar beets; forest products; or other
25 renewable resources, including residue and waste generated
26 from the production, processing, and marketing of
27 agricultural products, forest products, and other renewable
28 resources.
29 (f) "Processing center" means a grain processing center
30 at which ethyl alcohol is produced by fermenting corn or
31 other organic materials and which is owned by a governmental
32 unit or a private entity that provides Illinois farmers the
33 opportunity to invest.
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1 Section 20. Grain processing payments.
2 (a) Subject to appropriation, the Director shall make
3 cash payments to processors in this State that use corn to
4 make ethyl alcohol and other products. These payments shall
5 apply only to corn used to make ethyl alcohol and other
6 products in this State at a processing center that begins
7 production after January 1, 1998. For the purpose of this
8 Section, an entity that holds a controlling interest in more
9 than one processing center shall be considered a single
10 processor. The amount of the payment for each processor's
11 annual consumption shall be 30 cents per bushel of corn for
12 each bushel of corn used to produce ethyl alcohol and other
13 products in a grain processing center that began production
14 after January 1, 1998. Payment shall be made only during
15 the 5-year period beginning at the same time as the start of
16 production. Payment shall be made only on the first
17 5,000,000 bushels of corn consumed annually at each
18 processing center.
19 (b) The Director shall make payments to processors of
20 corn in the amount of 1.5 cents for each kilowatt hour of
21 electricity generated using closed-loop biomass, coal mine
22 methane gas from abandoned mines, or methane from waste
23 disposal, including but not limited to, sanitary landfills,
24 animal manures, or food processing, in a cogeneration
25 facility serving a processing center or associated industry
26 located in this State. Payments under this subsection (b)
27 shall be made only for electricity generated at cogeneration
28 facilities serving processing centers that begin operation
29 after January 1, 1998. The payments shall apply to
30 electricity generated on or before the date 5 years after the
31 processor first qualifies for payment under this Act. Total
32 payments to processors under this Section in any fiscal year
33 may not exceed $750,000. For the purposes of this Section:
34 (i) "closed-loop biomass" means any organic
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1 material from a plant that is planted for the purpose of
2 being used to generate electricity or for multiple
3 purposes that include being used to generate electricity;
4 and
5 (ii) "cogeneration" means the combined generation
6 of:
7 (1) electrical or mechanical power; and
8 (2) steam or forms of useful energy,
9 including, but not limited to heat, that are used
10 for industrial, commercial, heating, or cooling
11 purposes.
12 (c) The total payments under subsections (a) and (b) to
13 all processors may not exceed $4,500,000 in a fiscal year.
14 Total payments under subsections (a) and (b) to a processor
15 in a fiscal year may not exceed $2,250,000.
16 (d) By the last day of September, December, March, and
17 June of each year, each processor shall file a claim for
18 payment for the bushels of corn used in a grain processing
19 center during the preceding 3 calendar months. A processor
20 with more than one processing center shall file a separate
21 claim for each such processing center. A processor who files
22 a claim under this Section shall include a statement of the
23 processor's total corn consumption and total ethyl alcohol
24 production during the quarter covered by the claim. A
25 processor shall file a separate claim for any amount claimed
26 under subsection (b). For each claim and statement of
27 production filed under this Act, the volumes and amounts
28 claimed must be examined by an independent certified public
29 accountant in accordance with standards established by the
30 American Institute of Certified Public Accountants.
31 (e) Subject to appropriation, payments under this
32 Section shall be made October 15, January 15, April 15, and
33 July 15 of each year. Subject to appropriation, a separate
34 payment shall be made for each claim filed. The total
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1 quarterly payment to a processor under this Act may not
2 exceed $562,500. If the total amount for which all
3 processors are eligible in a quarter under subsections (a)
4 and (b) exceeds $1,125,000, the Director shall make payments,
5 subject to appropriation, in the order in which the portion
6 of production capacity covered by each claim went into
7 production. Only those processors who receive payments for
8 the quarter or received payments under subsections (a) or (b)
9 in an earlier quarter will be eligible for corn payments
10 under this Act.
11 (f) If the total amount for which all processors are
12 eligible in a quarter under Section 20(b) exceeds the amount
13 available for payments, subject to appropriation, the
14 Director shall make payments in the order in which the
15 processing centers covered by the claims began generating
16 electricity using closed-loop biomass, coal mine methane gas
17 from abandoned mines, or methane from waste disposal,
18 including, but not limited to, sanitary landfills, animal
19 manures, or food processing.
20 Section 25. Rule making. The Director shall adopt
21 emergency and permanent rules to implement this Act.
22 Section 30. Partial invalidity. If any provision of
23 this Act or the application thereof to any person or
24 circumstance is held invalid, the remainder of this Act and
25 the application of that provision to other persons or
26 circumstances shall not be affected thereby.
27 Section 35. Expiration. This Act expires December 31,
28 2005, and the unobligated balance of each appropriation under
29 this Act on that date shall revert to the General Revenue
30 Fund.
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.".