State of Illinois
92nd General Assembly
Legislation

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92_HB0002eng

HB0002 Engrossed                               LRB9201200LBgc

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

 7        (415 ILCS 120/10)
 8        Sec. 10.  Definitions.  As used in this Act:
 9        "Agency" means the Environmental Protection Agency.
10        "Alternate fuel" means liquid petroleum gas, natural gas,
11    E85 blend fuel, fuel  composed  of  a  minimum  80%  ethanol,
12    bio-based methanol, fuels that are at least 70%  derived from
13    biomass, or electricity.
14        "Alternate  fuel  vehicle"  means  any  vehicle  that  is
15    operated  in  Illinois  and  is capable of using an alternate
16    fuel.
17        "Conventional", when used to modify the  word  "vehicle",
18    "engine",   or  "fuel",  means  gasoline  or  diesel  or  any
19    reformulations of those fuels.
20        "Covered Area" means the counties of Cook, DuPage,  Kane,
21    Lake,  McHenry,  and Will and those portions of Grundy County
22    and Kendall County that are included  in  the  following  ZIP
23    code  areas,  as designated by the U.S. Postal Service on the
24    effective date of this amendatory Act of 1998: 60416,  60444,
25    60447, 60450, 60481, 60538, and 60543.
26        "Director"   means  the  Director  of  the  Environmental
27    Protection Agency.
28        "Domestic renewable fuel" means a fuel, produced  in  the
29    United  States,  composed of a minimum 80% ethanol, bio-based
30    methanol, and fuels derived from bio-mass.
31        "E85 blend fuel" means fuel that contains 85% ethanol and
 
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 1    15% gasoline.
 2        "GVWR" means Gross Vehicle Weight Rating.
 3        "Location" means (i) a parcel of real  property  or  (ii)
 4    multiple,  contiguous  parcels  of  real  property  that  are
 5    separated by private roadways, public roadways, or private or
 6    public  rights-of-way  and  are  owned,  operated, leased, or
 7    under common control of one party.
 8        "Original  equipment  manufacturer"  or  "OEM"  means   a
 9    manufacturer  of alternate fuel vehicles or a manufacturer or
10    remanufacturer of alternate fuel  engines  used  in  vehicles
11    greater than 8500 pounds GVWR.
12        "Rental vehicle" means any motor vehicle that is owned or
13    controlled primarily for the purpose of short-term leasing or
14    rental pursuant to a contract.
15    (Source:  P.A.  90-726,  eff.  8-7-98; 90-797, eff. 12-15-98;
16    91-357, eff. 7-29-99.)

17        (415 ILCS 120/21 new)
18        Sec. 21.  Alternate Fuel Infrastructure  Advisory  Board.
19    The  Governor  shall appoint an Alternate Fuel Infrastructure
20    Advisory Board.  The Advisory Board shall be chaired  by  the
21    Director.   Other  members  appointed  by  the Governor shall
22    consist of one representative from the ethanol industry,  one
23    representative   from   the   natural   gas   industry,   one
24    representative  from  the  auto  manufacturing  industry, one
25    representative from the liquid petroleum  gas  industry,  one
26    representative  from the Department of Commerce and Community
27    Affairs,  one  representative  from  the  heavy  duty  engine
28    manufacturing  industry,  one  representative  from  Illinois
29    private fleet operators,  and  one  representative  of  local
30    government from the Chicago nonattainment area.
31        The Advisory Board shall (1) prepare and recommend to the
32    Agency  rules  implementing  Section  31  of  this  Act;  (2)
33    determine  criteria and procedures to be followed in awarding
 
HB0002 Engrossed            -3-                LRB9201200LBgc
 1    grants and review applications for grants under the Alternate
 2    Fuel Infrastructure Program; and (3) make recommendations  to
 3    the Agency as to the award of grants under the Alternate Fuel
 4    Infrastructure Program.
 5        Members  of  the  Advisory  Board shall not be reimbursed
 6    their costs and expenses of participation.  All decisions  of
 7    the  Advisory Board shall be decided on a one vote per member
 8    basis with a majority of the  Advisory  Board  membership  to
 9    rule.

10        (415 ILCS 120/25)
11        Sec.  25.  Ethanol fuel research program.  The Department
12    of Commerce and Community Affairs shall administer a research
13    program to reduce the costs of producing  ethanol  fuels  and
14    increase  the  viability of ethanol fuels, new ethanol engine
15    technologies, and  ethanol  refueling  infrastructure.   This
16    research  shall be funded from the Alternate Fuels Fund.  The
17    research program shall remain in effect  until  December  31,
18    2003 2002, or until funds are no longer available.
19    (Source:  P.A.  90-726,  eff.  8-7-98; 90-797, eff. 12-15-98;
20    91-357, eff. 7-29-99.)

21        (415 ILCS 120/30)
22        Sec. 30.  Rebate program.   Beginning  January  1,  1997,
23    each  owner of an alternate fuel vehicle shall be eligible to
24    apply for a rebate.  The Agency shall  cause  rebates  to  be
25    issued under the provisions of this Act.  The Alternate Fuels
26    Advisory  Board  shall  develop  and  recommend to the Agency
27    rules that provide incentives or  other  measures  to  ensure
28    that  small  fleet  operators  and owners participate in, and
29    benefit from, the rebate program.  Such  rules  shall  define
30    and  identify small fleet operators and owners in the covered
31    area and make provisions for the establishment of criteria to
32    ensure that funds from the Alternate Fuels Fund specified  in
 
HB0002 Engrossed            -4-                LRB9201200LBgc
 1    this  Act  are made readily available to these entities.  The
 2    Advisory Board  shall,  in  the  development  of  its  rebate
 3    application  review  criteria, make provisions for preference
 4    to be given to applications proposing a  partnership  between
 5    the  fleet operator or owner and a fueling service station to
 6    make alternate fuels available to the public.  An  owner  may
 7    apply  for  only  one of 3 types of rebates with regard to an
 8    individual alternate fuel vehicle:  (i)   a  conversion  cost
 9    rebate,  (ii)  an   OEM  differential cost rebate, or (iii) a
10    fuel cost differential rebate.  Only one rebate may be issued
11    with regard to a particular alternate fuel vehicle during the
12    life of that vehicle.  A rebate shall not exceed  $4,000  per
13    vehicle.   Over  the life of this rebate program, an owner of
14    an alternate fuel vehicle may not receive  rebates  for  more
15    than 150 vehicles per location or for 300 vehicles in total.
16        (a)  A  conversion  cost rebate may be issued to an owner
17    or his or her  designee  in  order  to  reduce  the  cost  of
18    converting  of  a  conventional  vehicle to an alternate fuel
19    vehicle.  Conversion of a conventional vehicle  to  alternate
20    fuel  capability must take place in Illinois for the owner to
21    be eligible for the conversion cost rebate.  Amounts spent by
22    applicants within a calendar year may be claimed on a  rebate
23    application  submitted  during  that calendar year.  Approved
24    conversion cost rebates applied  for  during  calendar  years
25    1997,  1998, 1999, 2000, 2001, and 2002, 2003, and 2004 shall
26    be  80%  of  all  approved  conversion  costs   claimed   and
27    documented.  Approval of conversion cost rebates may continue
28    after  calendar  year 2004, if funds are still available.  An
29    applicant may include on an application submitted in 1997 all
30    amounts spent within that calendar year  on  the  conversion,
31    even  if  the expenditure occurred before promulgation of the
32    Agency rules.
33        (b)  An OEM differential cost rebate may be issued to  an
34    owner or his or her designee in  order  to  reduce  the  cost
 
HB0002 Engrossed            -5-                LRB9201200LBgc
 1    differential between a conventional vehicle or engine and the
 2    same  vehicle  or  engine,  produced by an original equipment
 3    manufacturer, that has the capability to use alternate fuels.
 4        A new OEM vehicle or engine must be purchased in Illinois
 5    and must either be an alternate fuel vehicle or  used  in  an
 6    alternate  fuel  vehicle,  respectively,  for the owner to be
 7    eligible for an OEM differential cost rebate.  Amounts  spent
 8    by  applicants  within  a  calendar  year may be claimed on a
 9    rebate application submitted during that calendar year.
10        Approved OEM differential cost rebates applied for during
11    calendar years 1997, 1998, 1999, 2000, 2001, and 2002,  2003,
12    and  2004  shall  be  80%  of  all approved cost differential
13    claimed and documented.  Approval of  OEM  differential  cost
14    rebates  may  continue after calendar year 2004, if funds are
15    still available.  An applicant may include on an  application
16    submitted  in  1997  all  amounts  spent within that calendar
17    year on OEM  equipment,  even  if  the  expenditure  occurred
18    before promulgation of the Agency rules.
19        (c)  A  fuel cost differential rebate may be issued to an
20    owner or his or her designee in  order  to  reduce  the  cost
21    differential   between   conventional   fuels   and  domestic
22    renewable  fuels  purchased  to  operate  an  alternate  fuel
23    vehicle that runs on domestic renewable fuel.  The fuel  cost
24    differential  shall  be  based  on  a  3-year life cycle cost
25    analysis developed by the Agency by rulemaking.   The  rebate
26    shall  apply  to  and  be payable during a consecutive 3-year
27    period commencing on the date the application is approved  by
28    the  Agency.   Approved fuel cost differential rebates may be
29    applied for during calendar years 1997, 1998, 1999, 2000, and
30    2001, and 2002 and approved rebates shall be 80% of the  cost
31    differential  for  a  consecutive 3-year period.  Approval of
32    fuel cost differential rebates may  continue  after  calendar
33    year  2002  if funds are still available. Twenty-five percent
34    of the amount appropriated under Section 40  to  be  used  to
 
HB0002 Engrossed            -6-                LRB9201200LBgc
 1    fund  the programs authorized by this Section during calendar
 2    year 1998 shall be designated to fund fuel cost  differential
 3    rebates.   If  the  total dollar amount of approved fuel cost
 4    differential rebate applications as of  October  1,  1998  is
 5    less  than  the amount designated for that calendar year, the
 6    balance of designated funds shall be immediately available to
 7    fund any rebate authorized by this Section  and  approved  in
 8    the   calendar   year.    An  applicant  may  include  on  an
 9    application submitted in 1997 all amounts spent  within  that
10    calendar   year  on  fuel  cost  differential,  even  if  the
11    expenditure occurred before the promulgation  of  the  Agency
12    rules.
13        Twenty-five  percent  of  the  amount  appropriated under
14    Section 40 to be used to fund the programs authorized by this
15    Section during calendar year 1999 shall be designated to fund
16    fuel cost differential rebates.  If the total  dollar  amount
17    of  approved fuel cost differential rebate applications as of
18    July 1, 1999 is less than  the  amount  designated  for  that
19    calendar  year,  the  balance  of  designated  funds shall be
20    immediately available to fund any rebate authorized  by  this
21    Section and approved in the calendar year.
22        Twenty-five  percent  of  the  amount  appropriated under
23    Section 40 to be used to fund  programs  authorized  by  this
24    Section during calendar year 2000 shall be designated to fund
25    fuel  cost  differential rebates.  If the total dollar amount
26    of approved fuel cost differential rebate applications as  of
27    July  1,  2000  is  less  than the amount designated for that
28    calendar year, the  balance  of  designated  funds  shall  be
29    immediately  available  to fund any rebate authorized by this
30    Section and approved in the calendar year.
31        Twenty-five percent of the amount  that  is  appropriated
32    under  Section  40  to be used to fund programs authorized by
33    this Section during calendar year 2001 shall be designated to
34    fund fuel cost differential rebates.   If  the  total  dollar
 
HB0002 Engrossed            -7-                LRB9201200LBgc
 1    amount of approved fuel cost differential rebate applications
 2    as  of  July  1,  2001 is less than the amount designated for
 3    that calendar year, the balance of designated funds shall  be
 4    immediately  available  to fund any rebate authorized by this
 5    Section and approved in the calendar year.
 6        An approved fuel cost differential rebate shall  be  paid
 7    to  an  owner  in  3  annual  installments  on  or  about the
 8    anniversary date of the approval of the application.   Owners
 9    receiving  a  fuel cost differential rebate shall be required
10    to demonstrate, through  recordkeeping, the use  of  domestic
11    renewable  fuels  during  the 3-year period commencing on the
12    date the application is  approved  by  the  Agency.   If  the
13    alternate  fuel  vehicle  ceases  to  be  registered  to  the
14    original  applicant  owner,  a  prorated installment shall be
15    paid to that owner or the owner's designee and the  remainder
16    of the rebate shall be canceled.
17        (d)  Vehicles owned by the federal government or vehicles
18    registered  in  a state outside Illinois are not eligible for
19    rebates.
20    (Source: P.A. 89-410; 90-726, eff. 8-7-98.)

21        (415 ILCS 120/31 new)
22        Sec. 31.  Alternate  Fuel  Infrastructure  Program.   The
23    Environmental  Protection  Agency  shall  establish  a  grant
24    program  to  provide  funding  for the building of E85 blend,
25    propane, and compressed natural gas (CNG) fueling facilities,
26    including private on-site fueling  facilities,  to  be  built
27    within  the  covered  area  or in Illinois metropolitan areas
28    over 100,000 in population.  The Agency shall be  responsible
29    for  reviewing  the proposals and awarding the grants.  Under
30    the grant program, applicants may apply for up to 80% of  the
31    total  cost  of the project.  At least  20% of the total cost
32    of the project must be provided by the applicant in  cash  or
33    material.
 
HB0002 Engrossed            -8-                LRB9201200LBgc
 1        (415 ILCS 120/32 new)
 2        Sec.    32.    Clean   Fuel   Education   Program.    The
 3    Environmental Protection  Agency,  in  cooperation  with  the
 4    Department of Commerce and Community Affairs and Chicago Area
 5    Clean  Cities,  shall  administer  the  Clean  Fuel Education
 6    Program,  the  purpose  of  which   is   to   educate   fleet
 7    administrators  and  Illinois' citizens about the benefits of
 8    using alternate fuels.  The program  shall  include  a  media
 9    campaign.

10        (415 ILCS 120/35)
11        Sec. 35.  User fees.
12        (a)  During  fiscal  years 1999, 2000, and 2001, and 2002
13    the Office of the Secretary of  State  shall  collect  annual
14    user  fees  from  any  individual,  partnership, association,
15    corporation, or agency of the United States  government  that
16    registers  any  combination  of  10  or more of the following
17    types of motor vehicles in the Covered Area:   (1)   Vehicles
18    of  the  First  Division,  as defined in the Illinois Vehicle
19    Code; (2)  Vehicles of the Second Division  registered  under
20    the  B,  D,  F, H, MD, MF, MG, MH and MJ plate categories, as
21    defined in the Illinois Vehicle Code; and (3)  Commuter  vans
22    and  livery vehicles as defined in the Illinois Vehicle Code.
23    This Section does not apply to vehicles registered under  the
24    International  Registration Plan under Section 3-402.1 of the
25    Illinois Vehicle Code. The user fee shall  be  $20  for  each
26    vehicle  registered in the Covered Area for each fiscal year.
27    The Office of the Secretary of State shall  collect  the  $20
28    when a vehicle's registration fee is paid.
29        (b)  Owners   of  State,  county,  and  local  government
30    vehicles,  rental  vehicles,   antique   vehicles,   electric
31    vehicles,  and  motorcycles  are  exempt from paying the user
32    fees on such vehicles.
33        (c)  The Office of the Secretary of State  shall  deposit
 
HB0002 Engrossed            -9-                LRB9201200LBgc
 1    the user fees collected into the Alternate Fuels Fund.
 2    (Source: P.A. 89-410; 90-726, eff. 8-7-98.)

 3        (415 ILCS 120/40)
 4        Sec.  40.  Appropriations  from the Alternate Fuels Fund.
 5    The Agency shall estimate the amount of user fees expected to
 6    be collected for fiscal years 1999, 2000, and 2001, and 2002.
 7    Moneys shall be  deposited  into  and  distributed  from  the
 8    Alternate Fuels Fund in the following manner:
 9        (1)  In  each of fiscal years 1999, 2000, 2001, and 2002,
10    2003, and 2004 an  amount  not  to  exceed  $200,000  may  be
11    appropriated  to  the Agency from the Alternate Fuels Fund to
12    pay its costs of administering the   programs  authorized  by
13    this  Act.  Additional  appropriations to the Agency from the
14    Alternate Fuels Fund to pay its costs  of  administering  the
15    programs  authorized  by this Act may be made in fiscal years
16    following 2004, not to exceed the amount of $200,000  in  any
17    fiscal  year,  if funds are still available and program costs
18    are still being incurred. Up to $200,000 may be  appropriated
19    to  the  Office  of  the Secretary of State in each of fiscal
20    years 1999, 2000, and 2001, and 2002 from the Alternate Fuels
21    Fund to pay the Secretary of State's costs  of  administering
22    the programs authorized under this Act.
23        (2)  In  fiscal  year  1999,  after  appropriation of the
24    amounts authorized by paragraph  (1),  the  remaining  moneys
25    estimated  to  be  collected during fiscal year 1999 shall be
26    appropriated as follows:  80% of each such  remaining  moneys
27    shall  be  appropriated  to  fund  the programs authorized in
28    Section 30 and 20% shall be appropriated to fund the programs
29    authorized in Section 25.
30        (2.5)  Beginning in fiscal year  2002,  moneys  from  the
31    Fund  may be used, subject to appropriation, for the purposes
32    of implementing Sections 31 and 32  of  this  Act,  including
33    necessary administrative costs.
 
HB0002 Engrossed            -10-               LRB9201200LBgc
 1        (3)  In fiscal years 2000, 2001, and 2002, 2003, and 2004
 2    after  appropriation  of the amounts authorized by paragraphs
 3    paragraph (1) and (2.5), the remaining  estimated  amount  of
 4    moneys  remaining  in  the  Fund  user  fees  expected  to be
 5    collected shall be appropriated  as  follows:   80%  of  such
 6    estimated  moneys  shall be appropriated to fund the programs
 7    authorized in Section 30 and 20%  shall  be  appropriated  to
 8    fund the programs authorized in Section 25.
 9        (4)  Moneys  appropriated to fund the programs authorized
10    in Sections 25 and 30 shall be expended only after they  have
11    been collected and deposited into the Alternate Fuels Fund.
12    (Source: P.A. 89-410; 90-726, eff. 8-7-98.)

13        (415 ILCS 120/45)
14        Sec. 45.  Alternate Fuels Fund; creation; deposit of user
15    fees.   A  separate  fund  in  the  State Treasury called the
16    Alternate  Fuels  Fund  is  created,  into  which  shall   be
17    transferred  the  user fees as provided in Section 35 and any
18    other    revenues,    deposits,     State     appropriations,
19    contributions, grants, gifts, bequests, legacies of money and
20    securities,  or  transfers  as  provided by law from, without
21    limitation,   governmental   entities,    private    sources,
22    foundations,  trade associations, industry organizations, and
23    not-for-profit organizations.
24    (Source: P.A. 89-410.)

25        Section 99.  Effective date.  This Act takes effect  upon
26    becoming law.

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