Bill Amendment: IL SB1556 | 2023-2024 | 103rd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: EPA-CLEAN TRANSPORT STANDARD
Status: 2024-05-17 - Senate Committee Amendment No. 2 Rule 3-9(a) / Re-referred to Assignments [SB1556 Detail]
Download: Illinois-2023-SB1556-Senate_Amendment_002.html
Bill Title: EPA-CLEAN TRANSPORT STANDARD
Status: 2024-05-17 - Senate Committee Amendment No. 2 Rule 3-9(a) / Re-referred to Assignments [SB1556 Detail]
Download: Illinois-2023-SB1556-Senate_Amendment_002.html
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1 | AMENDMENT TO SENATE BILL 1556 | ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 1556 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the Clean | ||||||
5 | Transportation Standard Act.
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6 | Section 5. Findings. The General Assembly finds that: | ||||||
7 | (1) The transportation sector in this State is a | ||||||
8 | leading source of criteria air pollutants and greenhouse | ||||||
9 | gas emissions, which collectively endanger public health | ||||||
10 | and welfare by causing and contributing to increased air | ||||||
11 | pollution and climate change. | ||||||
12 | (2) Shifting from petroleum-based transportation fuels | ||||||
13 | to alternative fuels has the potential to significantly | ||||||
14 | reduce transportation emissions of air pollutants and | ||||||
15 | greenhouse gases and is recommended by the | ||||||
16 | Intergovernmental Panel on Climate Change as an important |
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1 | pathway for holding global warming at 1.5 degrees Celsius. | ||||||
2 | A clean transportation standard would promote innovation | ||||||
3 | in and production and use of nonpetroleum fuels that | ||||||
4 | reduce vehicle-related and fuel-related air pollution that | ||||||
5 | endangers public health and welfare and disproportionately | ||||||
6 | impacts disadvantaged communities. | ||||||
7 | (3) Credits generated through the use of clean fuel | ||||||
8 | under this Act will promote innovation and investment in | ||||||
9 | clean fuels.
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10 | Section 10. Definitions. As used in this Act: | ||||||
11 | "Agency" means the Environmental Protection Agency. | ||||||
12 | "Aggregator" or "credit aggregator" means a person who | ||||||
13 | registers to participate in the clean transportation standard | ||||||
14 | program on behalf of one or more credit generators to | ||||||
15 | facilitate credit generation and to trade credits. | ||||||
16 | "Aviation fuel" means a fuel suitably blended to be used | ||||||
17 | in aviation engines. | ||||||
18 | "Backstop aggregator" means a qualified nonprofit entity | ||||||
19 | approved by the Agency to aggregate credits for electricity | ||||||
20 | used as a transportation fuel when those credits would not | ||||||
21 | otherwise be generated. | ||||||
22 | "Board" means the Pollution Control Board. | ||||||
23 | "Carbon intensity" means the amount of life cycle | ||||||
24 | greenhouse gas emissions per unit of fuel energy expressed in | ||||||
25 | grams of carbon dioxide equivalent per megajoule. |
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1 | "Clean fuel" means a transportation fuel that is | ||||||
2 | domestically produced and has a carbon intensity below the | ||||||
3 | clean transportation standard carbon intensity standard in a | ||||||
4 | given year. | ||||||
5 | "Clean transportation standard" means the standard adopted | ||||||
6 | by the Board under Section 15 for the reduction, on average, of | ||||||
7 | life cycle carbon intensity of fuels used for on-road | ||||||
8 | transportation. If there is an industry-accepted standard for | ||||||
9 | calculating the carbon intensity of different modes of | ||||||
10 | transportation, such as off-road, light rail, and other forms | ||||||
11 | of mass transportation, the Board shall adopt that standard | ||||||
12 | for those modes of transportation. | ||||||
13 | "Consumer Price Index for All Urban Consumers" or "CPI-U" | ||||||
14 | means the index published by the Bureau of Labor Statistics of | ||||||
15 | the United States Department of Labor that measures the | ||||||
16 | average change in prices of goods and services, United States | ||||||
17 | city average, all items. | ||||||
18 | "Credit" means a unit of measure generated when clean fuel | ||||||
19 | is provided for use in this State, such that one credit is | ||||||
20 | equal to one metric ton of carbon dioxide equivalent. | ||||||
21 | "Credit generator" means a regulated entity that generates | ||||||
22 | a credit in the clean transportation standard. | ||||||
23 | "Deficit" means a unit of measure generated when a fuel | ||||||
24 | provided in this State has a carbon intensity that exceeds the | ||||||
25 | clean transportation standard for the applicable year, | ||||||
26 | expressed in metric tons of carbon dioxide equivalent. |
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1 | "Deficit generator" means a regulated entity that | ||||||
2 | generates a deficit in the clean transportation standard. | ||||||
3 | "Fuel" means any one or more of the following that is used | ||||||
4 | to power vehicles or equipment for the purpose of | ||||||
5 | transportation: electricity or a liquid, gaseous, or blended | ||||||
6 | fuel, including gasoline, diesel, liquefied petroleum gas, | ||||||
7 | natural gas, or hydrogen. | ||||||
8 | "Fuel pathway" means a detailed description of all stages | ||||||
9 | of a transportation fuel's production and use, including | ||||||
10 | feedstock growth, extraction, processing, transportation, | ||||||
11 | distribution, and combustion or use by an end user. | ||||||
12 | "Life cycle carbon intensity" means the quantity of | ||||||
13 | greenhouse gas emissions per unit of energy, expressed in | ||||||
14 | carbon dioxide equivalent per megajoule, emitted by the fuel, | ||||||
15 | including both direct and indirect sources, as calculated by | ||||||
16 | the Agency under subsection (2) of Section 20 using the | ||||||
17 | methods described under Section 30. | ||||||
18 | "Military tactical vehicle" means a motor vehicle owned by | ||||||
19 | the U.S. Department of Defense or the U.S. military services | ||||||
20 | and used in combat, combat support, combat service support, | ||||||
21 | tactical or relief operations, or training for such | ||||||
22 | operations. | ||||||
23 | "Petroleum-only portion" means the component of gasoline | ||||||
24 | or diesel fuel before blending with ethanol, biodiesel, | ||||||
25 | biofuel, or other clean fuel. | ||||||
26 | "Provider" means: |
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1 | (1) with respect to any liquid fuel, hydrogen fuel, | ||||||
2 | and renewable propane used as a fuel source for | ||||||
3 | transportation, the person who refines, produces, or | ||||||
4 | imports the fuel; | ||||||
5 | (2) with respect to any biomethane, the person who | ||||||
6 | imports or produces, refines, treats, or otherwise | ||||||
7 | processes biogas into biomethane used as a fuel source for | ||||||
8 | transportation; | ||||||
9 | (3) with respect to electricity used as a fuel source | ||||||
10 | for transportation, the person who is the direct provider | ||||||
11 | of electricity, the electric vehicle charging service | ||||||
12 | provider, the electric utility, the electric vehicle fleet | ||||||
13 | operator, the electric vehicle manufacturer, and the | ||||||
14 | owners or operators of charging stations located on | ||||||
15 | commercial property; or | ||||||
16 | (4) with respect to other types of fuel, a person | ||||||
17 | determined to be the provider by the Agency. | ||||||
18 | "Provider" does not include the owner or operator of a | ||||||
19 | residential charging station. | ||||||
20 | "Regulated entity" means any entity, whether a credit | ||||||
21 | generator or deficit generator, that has registered, on a | ||||||
22 | mandatory or permissive basis, to participate in the clean | ||||||
23 | transportation standard. | ||||||
24 | "Sustainable aviation fuel" means an aviation fuel with a | ||||||
25 | carbon intensity sufficient to generate credits under the | ||||||
26 | clean transportation standard upon its production or supply. |
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1 | "Tactical support equipment" means equipment using a | ||||||
2 | portable engine, including turbines, that meets military | ||||||
3 | specifications, is owned by the U.S. Department of Defense or | ||||||
4 | the U.S. military services or its allies, and is used in | ||||||
5 | combat, combat support, combat service support, tactical or | ||||||
6 | relief operations, or training for such operations. "Tactical | ||||||
7 | support equipment" includes, but is not limited to, engines | ||||||
8 | associated with portable generators, aircraft start carts, | ||||||
9 | heaters and lighting carts.
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10 | Section 15. Rulemaking and baseline calculations for clean | ||||||
11 | transportation standard. | ||||||
12 | (a) To the extent allowed by federal law, within 24 months | ||||||
13 | after the effective date of this Act, the Agency shall propose | ||||||
14 | and the Board shall adopt rules establishing a clean | ||||||
15 | transportation standard in order to reduce, within 10 years of | ||||||
16 | the adoption of the Agency's rules by the Board, the life cycle | ||||||
17 | carbon intensity of fuels for the ground transportation sector | ||||||
18 | by 25% below the 2019 baseline level as calculated under this | ||||||
19 | Section. After the 25% reduction described in this Section is | ||||||
20 | attained, the Agency shall prepare a report that proposes | ||||||
21 | further reductions in the life cycle carbon intensity of fuels | ||||||
22 | for the ground transportation sector for the following 10 | ||||||
23 | years. The report prepared by the Agency shall include | ||||||
24 | proposed changes to this Act that are required to implement | ||||||
25 | those reductions. The rules proposed and adopted shall be |
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1 | subject to public notice and comment under the Illinois | ||||||
2 | Administrative Procedure Act. The Board may recommend to the | ||||||
3 | General Assembly reductions to the clean transportation | ||||||
4 | standard below those adopted in accordance with this Act, | ||||||
5 | using factors, including, but not limited to, advances in | ||||||
6 | clean fuel technology. The rules adopted by the Board under | ||||||
7 | this Section shall include fees for the registration of | ||||||
8 | regulated entities to offset the costs incurred by the Board | ||||||
9 | and the Agency that are associated with implementing the clean | ||||||
10 | transportation standard. These fees shall be used only in | ||||||
11 | connection with the administration of the program and may be | ||||||
12 | levied differently based on whether a regulated entity is a | ||||||
13 | credit generator or deficit generator. Except where otherwise | ||||||
14 | provided in this Act, the Agency shall consider rules that are | ||||||
15 | harmonized, to the extent practicable, with the regulatory | ||||||
16 | standards, exemptions, reporting obligations, and other clean | ||||||
17 | transportation standard compliance requirements and methods | ||||||
18 | for credit generation of other states that have adopted | ||||||
19 | low-carbon fuel standards or similar greenhouse gas emissions | ||||||
20 | requirements applicable specifically to transportation fuels. | ||||||
21 | (b) The Agency shall calculate the baseline carbon | ||||||
22 | intensities of the petroleum-only portion of all | ||||||
23 | transportation fuels produced or imported in 2019 for use in | ||||||
24 | this State by: | ||||||
25 | (1) reviewing and considering the best available | ||||||
26 | applicable scientific data and calculations; and |
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1 | (2) using a life cycle emissions, performance-based | ||||||
2 | approach that is technology-and-feedstock neutral.
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3 | Section 20. Contents of clean transportation standard. The | ||||||
4 | clean transportation standard adopted by the Board, by rule, | ||||||
5 | shall: | ||||||
6 | (1) apply to all providers in the State; | ||||||
7 | (2) be measured based on a life cycle carbon intensity | ||||||
8 | that shall be calculated by the Agency in accordance with | ||||||
9 | Section 30; | ||||||
10 | (3) recognize voluntary farm emissions reductions that | ||||||
11 | contribute to the reduced carbon intensity of fuels by | ||||||
12 | allowing credit generators to use individualized | ||||||
13 | farm-level carbon intensity scoring for approved | ||||||
14 | sustainable agricultural practices and by requiring the | ||||||
15 | Agency to use the GREET model's Feedstock Carbon Intercity | ||||||
16 | Calculator (FD-CIC) to determine individualized farm-level | ||||||
17 | carbon intensity scoring; | ||||||
18 | (4) take into consideration the low-carbon clean | ||||||
19 | transportation fuel standards that are pending or have | ||||||
20 | been adopted in other states, including their provisions | ||||||
21 | related to the inclusion of additional credit | ||||||
22 | opportunities from activities and projects that support | ||||||
23 | the reduction or removal of greenhouse gas emissions | ||||||
24 | associated with transportation in the State, and that | ||||||
25 | allow regulated entities to generate credits under any |
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1 | overlapping current and future federal transportation fuel | ||||||
2 | statutes and regulations; | ||||||
3 | (5) include a credit price cap (i) that is to be | ||||||
4 | determined by the Agency and confirmed by the Board to | ||||||
5 | contain costs if the fuel supply forecasts determine that | ||||||
6 | not enough credits will be available and (ii) that shall | ||||||
7 | be adjusted annually by the rate of inflation as measured | ||||||
8 | by the most recently available 12 months of the Consumer | ||||||
9 | Price Index for All Urban Consumers; | ||||||
10 | (6) contain a structure for compliance that conforms | ||||||
11 | with the marketplace system described in Section 25, | ||||||
12 | including, but not limited to, details, such as: | ||||||
13 | (A) methods for assigning compliance obligations | ||||||
14 | and methods for tracking tradable credits; | ||||||
15 | (B) mechanisms that allow credits to be traded, | ||||||
16 | transferred, sold, and banked for future compliance | ||||||
17 | periods; | ||||||
18 | (C) mechanisms that provide for the creation of a | ||||||
19 | list of accepted credit transactions and a list of | ||||||
20 | prohibited forms of credit transactions, which may | ||||||
21 | include trades involving, related to, or associated | ||||||
22 | with any of the following: | ||||||
23 | (i) any manipulative or deceptive device; | ||||||
24 | (ii) a corner or an attempt to corner the | ||||||
25 | market for credits; | ||||||
26 | (iii) fraud or an attempt to defraud any other |
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1 | entity; | ||||||
2 | (iv) false, misleading, or inaccurate reports | ||||||
3 | concerning information or conditions that affect | ||||||
4 | or tend to affect the price of a credit; and | ||||||
5 | (v) applications, reports, statements, or | ||||||
6 | documents required to be filed under this Act that | ||||||
7 | are false or misleading with respect to a material | ||||||
8 | fact or that omit a material fact necessary to | ||||||
9 | make the contents therein not misleading; | ||||||
10 | (C) procedures for verifying the validity of | ||||||
11 | credits and deficits generated under the clean | ||||||
12 | transportation standard; | ||||||
13 | (D) mechanisms by which persons associated with | ||||||
14 | the supply chains of transportation fuels that are | ||||||
15 | used for purposes that are exempt from the clean | ||||||
16 | transportation standard described in Section 40 and | ||||||
17 | persons that are associated with the supply chains of | ||||||
18 | transportation fuels and will generate credits may | ||||||
19 | register with the Agency to participate in the clean | ||||||
20 | transportation standard program; and | ||||||
21 | (E) an administrative procedure by which a | ||||||
22 | regulated entity may contest the Board's or Agency's | ||||||
23 | calculation prior to the levying of a penalty for | ||||||
24 | failure to remedy a given deficit; | ||||||
25 | (F) procedures that will allow the Agency to | ||||||
26 | cancel or reverse (i) a credit transfer that is |
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1 | determined to be a prohibited transaction under items | ||||||
2 | (i) through (v) of subparagraph (B) or (ii) any other | ||||||
3 | prohibited transaction as determined by the Board in | ||||||
4 | rulemaking; | ||||||
5 | (7) contain a program review procedure whereby the | ||||||
6 | Board or Agency shall, every 3 years after the | ||||||
7 | implementation of the clean transportation standard, | ||||||
8 | solicit feedback from and consult with representatives | ||||||
9 | from stakeholder groups, including representatives from | ||||||
10 | the fuel production industry, the transportation industry, | ||||||
11 | the agricultural industry, environmental advocacy | ||||||
12 | organizations, labor organizations, representatives from | ||||||
13 | impacted environmental justice communities, as defined in | ||||||
14 | Section 801-10 of the Illinois Finance Authority Act, and | ||||||
15 | representatives from related State agencies; the substance | ||||||
16 | of the consultations shall include, but may not be limited | ||||||
17 | to, a review of the economic impact of the clean | ||||||
18 | transportation standard, whether the clean transportation | ||||||
19 | standard is adhering to the established carbon intensity | ||||||
20 | reduction goals, the health impact of the emissions | ||||||
21 | reductions on disadvantaged environmental justice | ||||||
22 | communities, as defined in Section 801-10 of the Illinois | ||||||
23 | Finance Authority Act, and whether access to | ||||||
24 | transportation has been affected as a result of the | ||||||
25 | implementation of the clean transportation standard; | ||||||
26 | (8) include annual carbon intensity reduction |
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1 | standards that are to be met by regulated entities and | ||||||
2 | that result in the attainment of carbon intensity | ||||||
3 | reduction targets set by the Board; | ||||||
4 | (9) maximize benefits to the environment and natural | ||||||
5 | resources and develop safeguards and incentives to protect | ||||||
6 | natural lands and enhance environmental integrity, | ||||||
7 | including biodiversity; | ||||||
8 | (10) aim to support, through credit generation or | ||||||
9 | other financial means, voluntary farmer-led efforts to | ||||||
10 | adopt agricultural practices that benefit soil health and | ||||||
11 | water quality; | ||||||
12 | (11) support equitable transportation electrification | ||||||
13 | that benefits all communities and is powered primarily | ||||||
14 | with low-carbon and carbon-free electricity; | ||||||
15 | (12) seek to improve air quality and public health, | ||||||
16 | targeting communities that bear a disproportionate health | ||||||
17 | burden from transportation pollution; | ||||||
18 | (13) establish, in consultation with the Department of | ||||||
19 | Agriculture and the Department of Transportation, a | ||||||
20 | procedure for determining fuel pathways that: | ||||||
21 | (A) is consistent for all fuel types; | ||||||
22 | (B) is based on science and engineering; and | ||||||
23 | (C) accounts for any on-site additional energy use | ||||||
24 | by a carbon capture technology employed in the fuel | ||||||
25 | production process, including, but not limited to, | ||||||
26 | generation, distillation, and compression; |
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1 | (14) recognize that farmers who can demonstrate use of | ||||||
2 | production methods that lower the carbon intensity of | ||||||
3 | their commodities shall be compensated a fair market value | ||||||
4 | that is, at minimum, commensurate with costs associated | ||||||
5 | with those low-carbon production methods or shall be | ||||||
6 | provided a fair share of the increased market value of the | ||||||
7 | end-use product that their commodity is used to produce. | ||||||
8 | Compensation may come in a variety of forms, including, | ||||||
9 | but not limited to, practice-based incentive payments, | ||||||
10 | outcome-based incentive payments, price premiums, or other | ||||||
11 | forms of payment. The Agency shall also protect farm data | ||||||
12 | by ensuring farmer ownership of data for a specific amount | ||||||
13 | of time or negotiated on an annual basis; | ||||||
14 | (15) contain mechanisms to excuse noncompliance from | ||||||
15 | enforcement action if compliance is impossible, including | ||||||
16 | rules that shall specify the criteria and procedures for | ||||||
17 | the Agency to determine whether a period of noncompliance | ||||||
18 | is excusable in accordance with Sections 50 and 55; | ||||||
19 | (16) include mechanisms by which providers who would | ||||||
20 | be eligible to generate credits from electricity used as | ||||||
21 | transportation fuel may assign their right to generate | ||||||
22 | credits to an aggregator, and include mechanisms by which | ||||||
23 | a backstop aggregator may register with the program to | ||||||
24 | generate credits if an electric utility opts out of the | ||||||
25 | program; and | ||||||
26 | (17) provide indirect accounting mechanisms, such as |
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1 | book-and-claim or mass-balancing for clean fuels entering | ||||||
2 | fungible supply systems that can access this State.
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3 | Section 25. Credit market; verification and data privacy; | ||||||
4 | compliance and penalties. | ||||||
5 | (a) The clean transportation standard adopted by the Board | ||||||
6 | shall take the form of a credit marketplace with the following | ||||||
7 | structure. The marketplace shall consist of a system of | ||||||
8 | credits and deficits monitored by the Agency. The Agency shall | ||||||
9 | compile a list of fuel pathways that providers may use to | ||||||
10 | generate credits. Providers seeking to be credit generators | ||||||
11 | must register with the Agency and attest to the transportation | ||||||
12 | fuels they provide in the State in order to qualify to generate | ||||||
13 | credits. Each deficit generator must register and comply with | ||||||
14 | the program. Fuels that are registered with the program must | ||||||
15 | have a dedicated, verifiable fuel pathway with a carbon | ||||||
16 | intensity score measurable by software described in Section 30 | ||||||
17 | and assigned a unique identifier by the Agency. Providers | ||||||
18 | reaching or exceeding the required reduction of life cycle | ||||||
19 | carbon intensity under the clean transportation standard shall | ||||||
20 | receive credits from the Agency upon verification described in | ||||||
21 | subsection (b) at the end of a reoccurring reporting period as | ||||||
22 | determined by the Agency. Fuel providers that are deficit | ||||||
23 | generators during a year shall eliminate the deficit by either | ||||||
24 | providing transportation fuels whose carbon intensity is at or | ||||||
25 | below the level of that year's annual clean transportation |
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1 | standard or by purchasing credits to offset the deficit. The | ||||||
2 | system of credits created under this subsection shall provide | ||||||
3 | credits based on a life cycle emissions performance-based | ||||||
4 | approach that is technology neutral, feedstock neutral, and | ||||||
5 | has the purpose of achieving transportation fuel | ||||||
6 | decarbonization. | ||||||
7 | (b) The Agency must, in collaboration with the Department | ||||||
8 | of Agriculture and the Department of Transportation, establish | ||||||
9 | acceptable methods to verify that the transportation fuel used | ||||||
10 | by regulated entities has been provided following the pathway | ||||||
11 | bearing the unique identifier as attested by the regulated | ||||||
12 | entity. The Agency is authorized to contract with third party | ||||||
13 | verifiers to accomplish this requirement. Upon registering | ||||||
14 | with the program, regulated entities must agree to provide | ||||||
15 | data related to the registered fuel pathway used to generate | ||||||
16 | credits or deficits with the Agency as required to administer | ||||||
17 | the program. Upon registering with the program, regulated | ||||||
18 | entities must agree to be subject to periodic audits as | ||||||
19 | determined by the Agency. | ||||||
20 | All information gathered by or provided to the Agency or | ||||||
21 | contractors of the Agency, either by regulated entities, | ||||||
22 | agents of regulated entities, or growers of feedstock used in | ||||||
23 | a registered fuel pathway by regulated entities, through | ||||||
24 | either voluntary disclosure or audit, must not be shared by | ||||||
25 | the Agency with any party except in relation to the | ||||||
26 | administration of the clean transportation standard absent |
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1 | written consent by the regulated entity and the entity from | ||||||
2 | which the data was gathered. This data must not be used for any | ||||||
3 | purpose outside of the administration and enforcement of the | ||||||
4 | clean transportation standard except by written consent from | ||||||
5 | the original data holder. Ownership of all data shared or | ||||||
6 | collected by the Agency for the administration and enforcement | ||||||
7 | of the clean transportation standard is retained with the | ||||||
8 | entity from which the data originates. Data protected under | ||||||
9 | this subparagraph does not include a regulated entity's credit | ||||||
10 | or deficit balance, which may be publicly disclosed by the | ||||||
11 | Agency. | ||||||
12 | (c) Deficit generators who fail to offset their deficits | ||||||
13 | at the conclusion of any compliance period administered by the | ||||||
14 | Agency shall be subject to a civil penalty established by the | ||||||
15 | Agency subject to the following limitations: | ||||||
16 | (1) the value of the penalty shall correspond to the | ||||||
17 | amount of deficits attributed to a given regulated entity | ||||||
18 | at the time the transaction has completed; and | ||||||
19 | (2) for every one deficit the regulated entity fails | ||||||
20 | to offset, the penalty for failure to offset that deficit | ||||||
21 | shall not exceed 10 times the value of the credit needed to | ||||||
22 | offset the deficit. | ||||||
23 | (d) Regulated entities that submit false information in | ||||||
24 | support of an application to register for the clean | ||||||
25 | transportation standard, that share false information during | ||||||
26 | an audit or in support of an attestation, or that otherwise |
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1 | share false or inaccurate information to the Agency or a | ||||||
2 | contractor working under the direction of the Agency shall be | ||||||
3 | subject to penalties to be determined by the Agency by rule. | ||||||
4 | Penalties under this paragraph may include monetary penalties, | ||||||
5 | forfeiture of credits, and reversals of prohibited | ||||||
6 | transactions as described in subparagraph (B) of paragraph (6) | ||||||
7 | of Section 20. The Agency may waive penalties under this | ||||||
8 | subparagraph. If the violator under this subsection is a | ||||||
9 | credit generator, following 3 violations, the Agency may | ||||||
10 | remove the violating credit generator from the clean | ||||||
11 | transportation standard. In determining whether penalties | ||||||
12 | should be applied and, if a penalty is to be applied, the | ||||||
13 | amount of penalties to be levied for violations under this | ||||||
14 | subparagraph, the Agency shall consider: | ||||||
15 | (1) evidence of willfulness by the regulated entity to | ||||||
16 | submit false information; | ||||||
17 | (2) the scope of the false information; | ||||||
18 | (3) evidence of past submissions of false information; | ||||||
19 | and | ||||||
20 | (4) efforts undertaken by the regulated entity to | ||||||
21 | remedy the false submission. | ||||||
22 | (e) The penalties provided for in this Section may be | ||||||
23 | recovered in a civil action brought in the name of the people | ||||||
24 | of the State of Illinois by the State's Attorney of the county | ||||||
25 | in which the violation occurred or by the Attorney General. | ||||||
26 | Any penalties collected under this Section in an action in |
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1 | which the Attorney General has prevailed shall be used to | ||||||
2 | offset registration fees in support of the administration of | ||||||
3 | the clean transportation standard program. Any amount of | ||||||
4 | penalties collected in addition to the amount needed to | ||||||
5 | administer the clean transportation standard program shall be | ||||||
6 | deposited into the Environmental Protection Trust Fund, to be | ||||||
7 | used in accordance with the provisions of the Environmental | ||||||
8 | Protection Trust Fund Act. | ||||||
9 | (f) The Attorney General or the State's Attorney of a | ||||||
10 | county in which a violation occurs may institute a civil | ||||||
11 | action for an injunction, prohibitory or mandatory, to | ||||||
12 | restrain violations of this Act or to require such actions as | ||||||
13 | may be necessary to address violations of this Act. | ||||||
14 | (g) The penalties and injunctions provided in this Act are | ||||||
15 | in addition to any penalties, injunctions, or other relief | ||||||
16 | provided under any other law. Nothing in this Act bars an | ||||||
17 | action by the State for any other penalty, injunction, or | ||||||
18 | other relief provided by any other law.
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19 | Section 30. Life cycle carbon intensity calculations; | ||||||
20 | software. The life cycle carbon intensity calculation | ||||||
21 | conducted by the Agency under paragraph (2) of Section 20 | ||||||
22 | shall use the Argonne National Laboratory's GREET model and | ||||||
23 | shall include all stages of fuel and feedstock production and | ||||||
24 | distribution, from feedstock generation or extraction through | ||||||
25 | the distribution, delivery, and use of the finished fuel by |
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1 | the ultimate consumer. The Agency shall, as needed and | ||||||
2 | periodically as established by rule, use as up-to-date a model | ||||||
3 | as possible, taking into account staffing and hiring needs. | ||||||
4 | Carbon intensity values calculated for clean fuel pathways | ||||||
5 | under construction or in operation using the current version | ||||||
6 | of the GREET model shall be allowed if the GREET model is | ||||||
7 | revised during the compliance year. In calculating the life | ||||||
8 | cycle carbon intensity, the mass values for all greenhouse | ||||||
9 | gases that are not carbon dioxide must be adjusted to account | ||||||
10 | for each of their relative global warming potentials. This | ||||||
11 | adjustment shall be performed using the global warming | ||||||
12 | potential deemed most accurate by the Agency for each | ||||||
13 | greenhouse gas for the period during which reductions in | ||||||
14 | greenhouse gas emissions are to be attained under the clean | ||||||
15 | transportation standard. When measuring the carbon intensity | ||||||
16 | of clean fuels, the Agency shall use the GREET model's | ||||||
17 | Feedstock Carbon Intensity Calculator (FD-CIC) for the | ||||||
18 | purposes of accounting for variations in farming practices | ||||||
19 | across different fuel pathways.
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20 | Section 35. Investments by backstop aggregators and | ||||||
21 | utilities. In implementing this Act, the Agency and Board | ||||||
22 | shall establish rules directing participating utilities and | ||||||
23 | backstop aggregators under the standard to invest all revenue | ||||||
24 | earned from trading credits toward investments into | ||||||
25 | distribution, grid modernization, infrastructure and other |
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1 | projects that support transportation decarbonization, with at | ||||||
2 | least 50% of such revenues supporting environmental justice | ||||||
3 | communities as defined in Section 801-10 of the Illinois | ||||||
4 | Finance Authority Act. All labor paid for with money from | ||||||
5 | required investments under this Section shall be subject to | ||||||
6 | the prevailing wage. The Agency and Board shall determine | ||||||
7 | projects and goals under this Act in consultation with | ||||||
8 | relevant stakeholders, including, but not limited to, credit | ||||||
9 | generators, affected communities, and environmental justice | ||||||
10 | advocacy organizations.
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11 | Section 40. Exemptions. The following fuels are exempt | ||||||
12 | from the clean transportation standard established in Section | ||||||
13 | 15: | ||||||
14 | (1) aviation fuels; | ||||||
15 | (2) transportation fuel used in locomotives; | ||||||
16 | (3) transportation fuel used in ocean-going vessels; | ||||||
17 | and | ||||||
18 | (4) fuel used in military tactical vehicles and | ||||||
19 | tactical support equipment owned by the U.S. Department of | ||||||
20 | Defense or the U.S. military services. | ||||||
21 | However, providers of these fuels, if deemed to be clean | ||||||
22 | fuels, shall be eligible under the rules adopted pursuant to | ||||||
23 | this Act to receive credits on an opt-in basis that may be | ||||||
24 | applied to future obligations or sold to deficit generators.
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1 | Section 45. Agency reporting obligation. Within 12 months | ||||||
2 | after the implementation of the clean transportation standard, | ||||||
3 | the Agency shall submit a report to the General Assembly | ||||||
4 | detailing the implementation of the clean transportation | ||||||
5 | standard, the reductions in greenhouse gas emissions that have | ||||||
6 | been achieved through the clean transportation standard, and | ||||||
7 | targets for future reductions in greenhouse gas emissions. | ||||||
8 | These reports shall include feedback solicited from | ||||||
9 | stakeholders under paragraph (7) of Section 20.
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10 | Section 50. Fuel supply forecasting. In consultation with | ||||||
11 | the Department of Transportation and the Department of | ||||||
12 | Agriculture, the Agency must develop a periodic fuel supply | ||||||
13 | forecast to project the availability of fuels to the State | ||||||
14 | necessary for compliance with clean transportation standard | ||||||
15 | requirements. The fuel supply forecast for each upcoming | ||||||
16 | compliance period must include, but is not limited to, the | ||||||
17 | following: | ||||||
18 | (1) an estimate of the potential volumes of gasoline, | ||||||
19 | gasoline substitutes, and gasoline alternatives, and | ||||||
20 | diesel, diesel substitutes, and diesel alternatives | ||||||
21 | available to the State. In developing this estimate, the | ||||||
22 | Agency must consider, but is not limited to, considering: | ||||||
23 | (A) the existing and future vehicle fleet in this | ||||||
24 | State; and | ||||||
25 | (B) any constraints that might be preventing |
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1 | access to available and cost-effective clean fuels by | ||||||
2 | the State, such as geographic and logistical factors, | ||||||
3 | and alleviating factors to the constraints; | ||||||
4 | (2) an estimate of the total banked credits and | ||||||
5 | carried over deficits held by regulated entities, credit | ||||||
6 | generators, and credit aggregators at the beginning of the | ||||||
7 | compliance period, and an estimate of the total credits | ||||||
8 | attributable to fuels described in paragraph (1); | ||||||
9 | (3) an estimate of the number of credits needed to | ||||||
10 | meet the applicable clean transportation standard | ||||||
11 | requirements during the forecasted compliance period; and | ||||||
12 | (4) a comparison in the estimates of paragraphs (1) | ||||||
13 | and (2) with the estimate in paragraph (3), for the | ||||||
14 | purpose of indicating the availability of fuels and banked | ||||||
15 | credits needed for compliance with the requirements of | ||||||
16 | this chapter. | ||||||
17 | The Agency may appoint a forecast review team of relevant | ||||||
18 | experts to participate in the fuel supply forecast or | ||||||
19 | examination of data required by this Section. The Agency must | ||||||
20 | finalize a fuel supply forecast for an upcoming compliance | ||||||
21 | period by no later than 90 days prior to the start of the | ||||||
22 | compliance period.
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23 | Section 55. Forecast deferral. | ||||||
24 | (a) No later than 30 calendar days before the commencement | ||||||
25 | of a compliance period, the Agency shall issue an order |
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1 | declaring a forecast deferral if the fuel supply forecast | ||||||
2 | under Section 50 projects that the amount of credits that will | ||||||
3 | be available during the forecast compliance period will be | ||||||
4 | less than 100% of the credits projected to be necessary for | ||||||
5 | regulated parties to comply with the scheduled applicable | ||||||
6 | clean transportation standard adopted by the Agency for the | ||||||
7 | forecast compliance period. | ||||||
8 | (b) An order declaring a forecast deferral under this | ||||||
9 | Section must set forth: | ||||||
10 | (1) the duration of the forecast deferral; | ||||||
11 | (2) the types of fuel to which the forecast deferral | ||||||
12 | applies; and | ||||||
13 | (3) which of the following methods the Agency has | ||||||
14 | selected for deferring compliance with the scheduled | ||||||
15 | applicable clean transportation standard during the | ||||||
16 | forecast deferral: | ||||||
17 | (A) temporarily adjusting the scheduled applicable | ||||||
18 | clean transportation program standard to a standard | ||||||
19 | identified in the order that better reflects the | ||||||
20 | forecast availability of credits during the forecast | ||||||
21 | compliance period and requiring regulated entities to | ||||||
22 | comply with the temporary standard; | ||||||
23 | (B) requiring regulated entities to comply only | ||||||
24 | with the clean transportation standard applicable | ||||||
25 | during the compliance period prior to the forecast | ||||||
26 | compliance period; or |
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1 | (C) suspending deficit accrual for part or all of | ||||||
2 | the forecast deferral period. | ||||||
3 | (c) In implementing a forecast deferral, the Agency may | ||||||
4 | take an action for deferring compliance with the clean | ||||||
5 | transportation standard other than, or in addition to, | ||||||
6 | selecting a method under paragraph (3) of subsection (b) only | ||||||
7 | if the Agency determines that none of the methods under | ||||||
8 | paragraph (3) of subsection (b) will provide a sufficient | ||||||
9 | mechanism for containing the costs of compliance with the | ||||||
10 | clean transportation standard during the forecast deferral. | ||||||
11 | (d) If the Agency makes the determination specified in | ||||||
12 | subsection (c), the Agency shall: | ||||||
13 | (1) include in the order declaring a forecast deferral | ||||||
14 | the determination and the action to be taken; and | ||||||
15 | (2) provide written notification and justification of | ||||||
16 | the determination and the action to: | ||||||
17 | (A) the Governor; | ||||||
18 | (B) the President of the Senate; | ||||||
19 | (C) the Speaker of the House of Representatives; | ||||||
20 | (D) the Majority and Minority Leaders of the | ||||||
21 | Senate; and | ||||||
22 | (E) the Majority and Minority Leaders of the House | ||||||
23 | of Representatives. | ||||||
24 | (e) The duration of a forecast deferral may not be less | ||||||
25 | than one calendar quarter or longer than one compliance | ||||||
26 | period. Only the Agency may terminate, by order, a forecast |
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1 | deferral before the expiration date of the forecast deferral. | ||||||
2 | Termination of a forecast deferral is effective on the first | ||||||
3 | day of the next calendar quarter after the date that the order | ||||||
4 | declaring the termination is adopted.
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5 | Section 60. Conflicts with other State programs. Nothing | ||||||
6 | in this Act precludes the Agency or Board from adopting or | ||||||
7 | maintaining other programs as permitted or required by | ||||||
8 | existing or future legislation to reduce greenhouse gas | ||||||
9 | emissions from the transportation sector.
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