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Newsletters
CICI Legisletter April 11, 2008
Volume 22 - Issue 9

RESERVE HOTEL ROOMS BY THIS MONDAY FOR MAY 6 LEG/REG DAY
 
The President Abraham Lincoln Hotel has a discounted block of rooms reserved for CICI for the upcoming Legislative & Regulatory Day May 6. Reservations can be made by calling the hotel at 1-866-788-1860CICI’s block of rooms will be available until this Monday, April 14, 2008, so please make your reservations accordingly.
 
You can register by following this link: http://www.cicil.net/Flyers/Legislativeday08.html
 
Illinois State Treasurer Alexis Giannoulias will be the keynote speaker at the Luncheon. Treasurer Giannoulias will speak about the current budget problems facing the State of Illinois. 
 
This event is a great opportunity to mingle and get to know the key people in state government, like members of the Illinois General Assembly, Constitutional Officers, IEPA officials, the members of the Pollution Control Board, and other key government officials. At the 2007 reception, over 175 legislators and government officials attended. Come thank those elected officials who are friends of the chemical industry.
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COSTLY STRUCTURAL WORK ACT RESURFACES
 
The state’s trial lawyers are back and flexing their muscle. With only a few hours notice, an amendment was introduced to a bill, HB 2094 (Madigan, D-Chicago), to reinstate the Structural Work Act, now called the Construction Safety Act of 2008, which was repealed in 1995. The bill passed to the House Floor this week with all Democrats of the Civil Law Committee voting “YES” and the Republicans voting “NO”.   This is a very controversial proposal allowing injured workers to file certain lawsuits outside of the current worker’s compensation system.
 
The Structural Work Act was first passed in 1907 and allowed injured workers to sue companies other than their own employer that were involved in a workplace accident, even if the incident was the fault of the injured party. The law also allowed injured workers to seek damages from other parties while collecting workers compensation. This type of law has been deemed by many as unnecessary as the state’s current worker’s compensation laws have replaced it. Only New York currently even has a law like this on their books.  If this proposal becomes law, it will subject businesses to more lawsuits and escalated insurance costs.
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HOUSE DEFEATS $3 BILLION TAX HIKE
 
A proposed $3 billion tax hike was defeated by the House yesterday, receiving only 52 of the 71 votes necessary to advance to the Senate. The legislation, a constitutional amendment, HJRCA 42 (Smith, D-Canton), would need to be approved by a three-fifths margin in both the House and Senate, and then submitted to voters in a statewide referendum this November. Governor Blagojevich would not need to sign HJRCA 42 for it to be on the ballot in November. This measure would have increased the state's 3 percent income tax to 6 percent for individuals or couples earning more than $250,000, generating potentially $3 billion more for the state. The tax rate would have stayed at 3 percent for those below that income threshold.
 
The proposal went on to require that a third of the additional proceeds go for elementary and secondary education, another third for infrastructure projects, and the remaining amount to help “working families.”
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CHEMICAL BANS LIKELY IN COMMITTEE NEXT WEEK
 
An effort is likely afoot in the Senate to resurrect chemical bans on phthalates and bisphenol A (BPA) when they return next week. While the proponents of this measure failed to even call their bills for a vote in their respective committees before the deadline a month ago, CICI has learned that some sort of ban language will likely be assigned to a Senate Committee. At the time of this writing, it’s not clear what the language will look like but will nonetheless contain a ban on chemical products that have been proven safe by numerous health agencies around the globe in their respective applications. CICI has taken the lead in opposing such measures and will keep you informed of any developments that may occur.        
 
CICI’s main argument against these bills is that the products are safe and have been proven as such. Secondly, this issue should be taken up as a federal issue rather than banning products on a state-by-state basis which would make it very difficult to conduct commerce if each state had different bans or limitations on the use of various chemicals.  
 
In response, CICI has introduced a resolution, HR 1150 (Lindner, R-Sugar Grove), calling on Congress to ensure that the Federal Toxic Substances Control Act (TSCA) provides the necessary statutory and regulatory controls necessary to protect human health and the environment from the risks of industrial chemicals. Further, another resolution, a joint resolution between the House and Senate, has been introduced as HJR 122 (Holbrook, D-Belleville) at the request of some consumer groups to urge congress to meaningfully address imports – everything from toys to cat food - that have been the subject of various recalls in this country. Both of these resolutions have be assigned to the House Rules Committee.
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JOINT HEARING ON AG PROGRAMS CUTS & FEE INCREASES
 
This Wednesday, April 16, the House and Senate Agriculture Committees will hold a joint hearing to take testimony concerning proposed cuts and various fee increases at the Illinois Department of Agriculture.  Testimony will be presented regarding the hold on the Fertilizer Research & Education Funds, and on cuts to Cooperative Extension, Soil & Water Conservation Districts, C-FAR and County Fair Ag Premium Funds.  FREC, unlike the latter programs mentioned, is not funded by taxpayer dollars but rather from the fertilizer tonnage fee paid by industry.  The money has been collected and is sitting in the Fertilizer Control Fund, but is being "held" under an administrative directive from the Governor's office.
 
The joint hearing will also be discussing proposed fee increases. This year, the administration is proposing to raise the pesticide product registration fee from $200 to $320 – a 60% increase.  There are approximately 11,000 pesticide products registered each year in Illinois, thus this fee increase will raise nearly $1.3 million in new revenue.  It can safely be assumed that this new revenue will also be deposited into the General Revenue Fund although promises will likely be made to keep the increases it in the Pesticide Control Fund to help run the Dept of Ag. CICI will oppose this fee increase. 
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ACTION ON OTHER BILLS
 
Clean Air Act Fast-Track Rulemakings – Passed Senate
This measure, SB 2639 (Harmon, D-Oak Park), reenacts a section of the Environmental Protection Act concerning fast-track rulemaking for the Clean Air Act to provide that when the Clean Air Act Amendments of 1990 or another federal statute or regulation requires rules other than identical in substance rules to be adopted, upon request by the IEPA, the IPCB must adopt rules under fast-track rulemaking requirements. The bill further sets out the form for a fast-track rulemaking proposal and provides that in any fast-track rulemaking proceeding, the IPCB must accept evidence and comments on the economic impact of any provision of the rule and must consider the economic impact of the rule. 
 
The bill was amended in committee to provide that the provisions concerning the Clean Air Act rules apply through December 31, 2013 and deletes provisions concerning the promulgation of federally required rules. And it was further amended on the Senate Floor deleting a provision requiring the fast-track rule requirements if a federal statute or regulation other than the Clean Air Act requires rules. This measure passed the Senate unanimously this week and now awaits further action in the House. CICI opposed the original bill. With the amendments, CICI’s position has changed to neutral.
 
Renewable Fuels Assistance Bills – All Advanced
This bill, SB 2570 (Frerichs, D-Champaign), amends the Illinois Renewable Fuels Development Program to require the Department of Commerce and Economic Opportunity (DCEO) to establish and administer the Illinois Corn Grain to Fuel Research Consortium Assistance Program the bill further exempts from the state’s sales taxes the selling price of motor fuel or gasohol that exceeds $2.50 per gallon. This bill passed the Senate unanimously this week and awaits further action in the House.
 
Another renewable fuels assistance proposal, SB 2861 (Demuzio, D-Carlinville), amends the Illinois Renewable Fuels Development Program Act to provide that facilities that produce ethanol for gasohol or majority blended ethanol fuel shall receive grants up to 10 cents per gallon of annual production capacity, not to exceed $10,000,000 for each facility. The bill also provides financial assistance for units of local government and petroleum distribution centers to install the necessary infrastructure for the use of majority blended ethanol. This bill advanced out of the Senate this week unanimously and now heads to the House. This is similar to HB 4696 (Smith, D-Canton), which also passed the House unanimously.
 
And finally, this measure, HB 5978 (Moffitt, R-Galesburg) authorizes DCEO to award, in excess of the annual aggregate grant total, up to $4,000,000 to a grant applicant who installs incorporating water recycling technology in the renewable fuels plant and requires that each applicant install advanced technologies for water usage, carbon footprint reductions, and other blending improvements designed to optimize processes at the applicant's renewable fuels facility. This measure passed the House unanimously and heads to the Senate for further action.
 
Synthetic Natural Gas/Coal Gasification – Passed Senate
This proposal, SB 2547 (Clayborne, D-E. St. Louis) provides that any gas utility may enter into a contract for up to 20 years of supply with any company for the purchase of synthetic natural gas (rather than a 20-year supply contract with any company for synthetic natural gas) produced from coal through the gasification process if the company has commenced construction of a coal gasification facility by July 1, 2009 (rather than July 1, 2008). Makes changes in factors used to determine whether the cost for synthetic natural gas is reasonable and prudent. The bill was amended in committee to provide that if the Illinois Commerce Commission determines that the cost for synthetic natural gas purchased under a specified contract during supply years 11 through 20 (rather than during years 11 through 20) is not reasonable and prudent, then the company shall reimburse the utility for a specified amount. This measure passed the Senate unanimously this week and now awaits further action in the House.
 
Mercury in Cosmetics – Passed Senate
This proposal, SB 2860 (Hunter, D-Chicago) amends the Mercury-added Product Prohibition Act to provide that no person shall distribute or sell any cosmetics, toiletries, or fragrances containing mercury and that any person who knowingly sells or distributes mercury-containing cosmetics, toiletries, or fragrances in this state commits a petty offense, fined up to $500. Manufacturers that distribute cosmetics, toiletries, or fragrances containing mercury must disclose the level of mercury in its cosmetics, toiletries, or fragrances. If a manufacturer fails to disclose the level of mercury in its cosmetics, toiletries, or fragrances, a business offense of $10,000 will be levied. This measure passed the Senate unanimously this week and now awaits further action in the House. 
 
Mercury Thermostat Take-Back Program – Passed House
This piece of legislation, HB 5348 (Jakobsson, D-Champaign), creates the Mercury Thermostat Collection Act requiring thermostat manufacturers to establish and maintain a program for the collection and recycling of mercury thermostats, to be handled as universal waste. The bill also prohibits wholesalers, retailers, and technicians from selling or distributing non-mercury thermostats if they have not taken certain actions with respect to the disposal of mercury thermostats. It also prohibits the sale or distribution of button cell batteries that contains mercury and the sale or distribution of certain mercury-added products. Amendments have been added to the bill holding retailers harmless as long as they do not knowingly sell these products. The bill passed the House unanimously this week and heads to the Senate for further action.
 
IEPA “Clean-Up” Bill – Passed House
This proposal, HB 4710 (Holbrook, D-Belleville) amends several different acts under the IEPA. First, it deletes a provision requiring the Department of Public Health to (1) require local educational agencies to submit to the Department certain asbestos related response action contracts for which the IEPA seeks indemnification and (2) collect from the agency a certain percentage of each response action contract for deposit into the Response Contractors Indemnification Fund. Then, within 30 days after the effective date, the State Comptroller and Treasurer shall transfer all moneys in the Response Action Contractor Indemnification Fund to the Brownfields Redevelopment Fund and then repeals the Act on the 31st day after the effective date. Secondly, the bill amends the Alternate Fuels Act in a section concerning the rebate program, authorizing the IEPA to establish rebate priorities and provides that the rebate applications must be submitted within 12 months after the vehicle conversion occurred (now, must be submitted within the same calendar year). Finally, the bill repeals the Hazardous Waste Crane and Hoisting Equipment Operators Licensing Act and the Hazardous Waste Laborers Licensing Act. This measure passed the House unanimously and now awaits further action in the Senate.
Nuclear Power Plant Construction Moratorium – Passed House Committee
This measure, HB 2971 (Osmond, R-Antioch), repeals the statutory imposition of a moratorium on the construction of any new nuclear power plants in the state. While it’s not clear that any new nuclear power plants in Illinois are planned, the state’s environmental community is up in arms over this proposal as they believe it will take away from alternative sources of energy like wind, solar power, etc. This measure passed the House Public Utilities Committee last week and awaits further action on the House Floor.
 
Green State Buildings – Passed House
This proposal, HB 5113 (Boland, D-Moline), creates the Green Buildings Act requiring all new state-funded building construction and major renovations of existing state-owned facilities to seek LEED (Leadership in Environment and Energy Design) certification, Green Globes, or equivalent standard certification. CICI was originally opposed to the legislation because it contained LEED certification only.  With the addition of the other standards, CICI removed its opposition. This measure moved out of the House with a vote of 106 “YES”, 6 “NO”, and 1 “PRESENT” and awaits further action in the Senate.  
 
Green Cleaning Policy for State Buildings – Passed House
This legislation, HB 4812 (May, D-Highland Park), requires every state-owned building to establish a green cleaning policy whereby the building purchases and uses only environmentally-sensitive cleaning products. CICI and representatives of cleaning product companies will be advising the Green Governments Coordinating Council is preparing rules much in the same way as they did for the green cleaning for schools that was enacted last year. This measure passed the House with only one dissenting vote.
 
Please note that the Chemical Industry Council of Illinois Legislator is not intended to convey legal advice or set forth all legal requirements applicable to particular circumstances.
 
Headquarters: 2250 E. DEVON AVE., SUITE 239, DES PLAINES, IL 60018 · TEL :( 847) 544-5995 · FAX :( 847) 544-5999
Springfield: 400 W. MONROE, SUITE 205, SPRINGFIELD, IL 62704 · TEL :( 217) 522-5805 · FAX :( 217) 522-5815
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400 W. Monroe, Suite 205
 Springfield, IL 62704
Tel: 217 522-5805 Fax: 217 522-5815

1400 E. Touhy Ave, Suite 110
Des Plaines, IL 60018
Tel: 847 544-5995 Fax: 847 544-5999