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CICI End of Legislative Session Report June 4, 2008
Volume 22 - Issue 16

END OF LEGISLATIVE SESSION REPORT
 
ALL KEY BILLS OPPOSED BY CICI FAIL TO ADVANCE
 
The good news is no bills opposed by the Chemical Industry Council of Illinois (CICI) advanced to the Governor. All efforts to ban chemicals, raise taxes or fees, eliminate industry tax incentives failed to reach the Governor. Below is an overview of the measures important to CICI members and their final status.
 
Chemical Bans – Bisphenol A, Phthalates, and Flame Retardants
Only one of these bills, SB 944 (Kotowski, D-Park Ridge) enacting a BPA ban, even received a committee hearing this session. After a fairly contentious debate, with many Senators attacking the proponent’s arguments for banning a safe product, the bill’s sponsor decided not to call the bill for a vote and hold it in committee. CICI is cautiously optimistic that the bill will not be called again this year.
All bills seeking to ban chemicals failed to advance this year. CICI actively opposed all of these ban measures.
 
Structural Work Act
The state’s trial lawyers never called their bill, HB 2094 (Madigan, D-Chicago), to reenact the Structural Work Act that was originally enacted over 100 years ago to protect workers injured in scaffolding accidents. But over the years, it became abused as workers were able to collect benefits under Workers' Compensation and then file lawsuits under the SWA against each party involved regardless of fault, including owners, suppliers, contractors, subcontractors and design. In fact, the bill was so dangerous to Illinois' economy that the General Assembly repealed the law back in 1995. The bill was on the amendment stage in the House when they adjourned last Saturday.  CICI opposed reestablishment of the SWA.
 
Clean Coal Legislation – Utility Rate Hikes
CICI opposed this measure, SB 1987 (Trotter, D-Chicago), which appeared a few days before adjournment that could have ultimately meant utility rate increases and hindered competition in the electricity market for industrial customers. The legislation was essentially betting with rate payers’ money on a promising but costly and unproven technology designed for Illinois' abundant coal, whose high sulfur content has impeded its use. Anticipating new federal standards restricting carbon emissions to combat global warming, the technology separates carbon during the coal-burning process for burial underground. 
 
It was estimated by some business groups that electricity rates for residents and businesses would increase by tens of millions of dollars annually. The legislation further mandated price increases every year for the next five years. It was also estimated these price increases could total $400 million per year or $2 billion over 4 years. At current market rates, approximately two-thirds of that $2 billion, or $1.3 billion, will be passed on to consumers, particularly commercial and industrial users. The bill only received 50 “YES” votes in the House, 10 shy of the 60 needed for passage
 
Climate Change
Amendments have been added to two shell bills in the House (HB 5254, Nekritz, D-Northbrook) and Senate (SB 2220, Harmon, D-Oak Park), but were held in committee for future discussions that will likely include meetings with the IEPA, the business community, environmentalists, and other interested stakeholders. A subject matter hearing has already occurred in the Senate and with more likely to follow. These proposals would enact many environmental ideas concerning climate change, including a cap and trade auction, i.e. cap and tax, an energy efficient furnace requirement, car emissions standards, clean “home-grown” fuel standards, and an energy efficient residential building code. CICI opposed both of these amendments as the climate change issue needs to be addressed at either the federal or international level. Neither of these bills advanced out of committee. 
 
Auto Emissions Standards
This measure, HB 3424 (May, D-Highland Park), has been awaiting action in the House for over a year now. The bill wouldimposeCalifornia auto emissions standards on all new cars sold or registered in Illinois for the 2011 model year and after. Ford Motor Co. has estimated that California’s clean-car standards would add $3,000 to the cost of each car sold in Illinois. The bill was sent back to the House Rules Committee upon adjournment.
 
IEPA Task Force on Water Supply Contaminants 
What once would have required public water supplies be tested for the presence of contaminants (natural and synthetic hormones, chemicals in cosmetics, shampoos, shaving lotions, skin creams, flame retardants, plastics, and anti-bacterial soaps), an amendment was added to HB 2167 (Froehlich, D-Schaumburg) that now simply requires the IEPA to convene a task force to study this problem. The bill was sent back to the House Rules Committee upon adjournment.
 
Lead Labeling of Children’s Products & Mercury in Cosmetics
This proposal, SB 2860 (Hunter, D-Chicago), along with a ban on mercury being added to cosmetics, provides that no one shall sell, have, offer for sale, or transfer certain children’s articles that contain a total lead content in any component part of the item that is more than 0.004% (40 parts per million) by total weight unless that item bears a warning statement that indicates that at least one component part of the item contains lead. The 40 parts per million is the threshold considered safe by the American Academy of Pediatrics. This bill was back in the Senate awaiting concurrence at the time of adjournment. 
 
Electronic Recycling/E-Waste
The issue of electronic waste has been discussed and negotiated in the General Assembly for a few years now. Legislation contained in SB 2313 (Garrett, D-Lake forest) finally passed the Senate unanimously, but became stalled after it left the House. The proposal creates the Electronic Products Recycling and Reuse Act and requires manufacturers, retailers, collectors, and recyclers to perform certain duties related to recycling or reusing certain electronic products. The bill also sets forth goals for manufacturers for the recycling of the electronic products and requires manufacturers and recyclers of the electronic products to register with the IEPA and pay a registration fee. The bill further sets out standards for recycling facilities of the electronic products. CICI’s main concern in this proposal was making sure chemicals products were not banned in electronic devices. The bill was awaiting concurrence with House amendments when it became stalled in the Senate the last day of session.
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ONE BILL SENT TO GOVERNOR
 
Brownfields Covenants
So far, this measure, SB 2110 (Wilhelmi, D-Joliet), was the only bill CICI was tracking outside of the budget that actually passed both chambers by the time of adjournment on May 31. This legislation creates the Uniform Environmental Covenants Act, proposed by the National Conference of Commissioners on Uniform State Laws, creating an interest in real estate called an "environmental covenant" that assures a plan of rehabilitation for contaminated real property (brownfields) and controls the use of the property. The measure was amended in committee to provide that in the definition of "environmental response project", it means a plan or work performed for environmental remediation of real property at sites or facilities: that (1) are listed as proposed or final on the National Priorities List pursuant to specified federal law; that (2) are undergoing remediation pursuant to an administrative order issued pursuant to specified federal law; that (3) are owned or operated by a department, agency, or instrumentality of the United States that are undergoing remediation pursuant to specified federal law; that (4) are undergoing remediation pursuant to a settlement agreement pursuant to specified federal law; that (5) are undergoing remediation pursuant to certain other federal law; or that (6) are undergoing remediation pursuant to a court or board order issued pursuant to the Illinois Environmental Protection Act with the approval of the IEPA. The amendment also provides that this does not invalidate or render unenforceable any interest that is otherwise compliant with 35 Ill. Adm. Code 742, Subpart J. Once this bill is reported to the Governor, he has 60 days to act on the proposal or it automatically becomes law.
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OTHER LEGISLATION NOT ADVANCING
 
None of the following pieces of legislation passed both houses by the time of adjournment on May 31 for various reasons. However, no bill ever truly dies in Springfield. The Fall Veto Session, which begins November 12, may revisit some of these issues.
 
SENATE BILLS
 
Clean Air Act Fast-Track Rulemakings
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. 
 
Clean Air Act Permitting
This measure, SB 2640 (Harmon, D-Oak Park), authorizes the Pollution Control Board to stay the effectiveness of certain final IEPA actions during the pending review process and authorizes them to stay the effectiveness of any or all of the contested conditions of a CAAPP permit if requested. The measure also provides that if the Board stays any contested conditions, then any related conditions from any prior existing permit continue in full force and effect until the final Board decision on the appeal of the granted CAAPP permit has been made. It further authorizes the Board to grant a request to stay all the conditions in a CAAPP permit upon a demonstration that the issues raised on appeal can be reasonably expected to affect the CAAPP permit in its entirety. If the entire CAAPP permit is stayed by the Board, then any prior existing permit continues in full force and effect until the final Board decision on the appeal of the granted CAAPP permit has been made. 
 
Restrictions on Phosphorous Fertilizers
This measure, SB 2369 (Garrett, D-Homewood), creates the Phosphorous Turf Fertilizer Use Restriction Act to provide that, beginning July 1, 2009, a person may not apply a fertilizer containing phosphorus to turf in this state. This does not apply, however, when (1) a tissue, soil, or other test by a laboratory or method approved by the Agency and performed within the immediately preceding 3 years indicates that the level of available phosphorus in the soil is insufficient to support healthy turf growth or (2) the property owner or an agent of the property owner is first establishing turf via seed or sod procedures, but only during the first growing season. 
 
Restrictions on High Capacity Wells
This proposal, SB 2370 (Garrett, D-Homewood), amends the Water Use Act of 1983 by Defining "high-capacity wells as a well where the rate or capacity of withdrawal of all wells on one property is in excess of 70 gallons of water per minute, or 100,000 gallons on any day. The bill also provides for the registration and imposes some restrictions on high capacity wells. 
 
Recycling Appliances – Restrictions on Landfills
This piece of legislation, SB 2016 (Halvorson, D-Crete) provides that white goods (appliances) may not be disposed in a landfill unless the recyclable components have been removed. The bill also requires retailers of white goods to collect a fee of $8 from the purchase of such appliances, $6 of that to be deposited into the White Goods Management Fund, which is to be used for certain administrative purposes and for grants to certain manufacturers of products composed of recycled material. This bill is similar to HB 5773 (May, D-Highland Park).
 
Attorney General/IEPA Legal Actions
This measure, SB 2018 (Haine, D-Alton), mandates that all complaints and other actions brought by the Illinois Attorney General (AG) pursuant to a referral or request from the IEPA must include the agency as a named party plaintiff or complainant in the action. This requirement, however, does not apply to certain criminal actions and is not intended to alter or diminish the AG's authority to act as the attorney for the agency and the state.
 
Diesel Emissions Reductions & Fees
This proposal, SB 2083 (Collins, D-Chicago), creates the Illinois Diesel Emissions Reduction Act requiring the collection of a surcharge on the retail sale or lease of certain diesel vehicles that are of a model year 2006 or earlier and are not equipped with Level 3 Controls and a similar surcharge on the registration of certain diesel vehicles. The surcharge and related fees were removed from the bill through an amendment, allowing CICI to become neutral on the bill. This bill is similar to HB 5772 (May, D-Highland Park).
 
Residential Energy Efficient Building Code
This legislation, SB 2456 (Cullerton, D-Chicago), mandates that new residential buildings be built in accordance with the current energy efficient building code that pertains to commercial and industrial buildings, except for additions, alterations, renovations, or repairs to existing residential structures. This bill is similar to HB 1842 (Hamos, D-Evanston).
 
Synthetic Natural Gas/Coal Gasification
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.
 
Coal Combustion By-Products
This bill, SB 2567 (Frerichs, D-Champaign), defines coal combustion by-product (CCB) and provides that coal combustion waste must be covered with 12 inches of soil, within 30 days after deposit of the coal combustion waste, before it may be considered as CCB. The bill further provides that coal combustion waste may be used as CCB only if the structural fill is located no less than 500 feet from any residence and any well that is being used as a residential water source, with IEPA inspection of structural fill CCB projects. This bill is similar to HB 4172 (Black, R-Danville).  
 
Renewable Fuels Assistance Bills
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. 
 
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 is similar to HB 4696 (Smith, D-Canton).
 
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.
 
HOUSE BILLS
 
Nuclear Power Plant Construction Moratorium
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. 
 
Renewable Energy Sources
This bill, HB 5855 (May, D-Highland Park), creates the Illinois Renewable Energy Sources Act to provide that electric utilities shall enter into power purchase agreements for a term of not less than 20 years to purchase all electricity from eligible electric generators in the State at specified rates set by the Commission for the following methods of generation: (1) hydroelectric power; (2) landfill gas or sewage treatment gas; (3) biomass or biogas; (4) geothermal energy plants; (5) wind-powered plants; and (6) solar-powered plants. The bill also provides that the Illinois Commerce Commission (ICC) shall, after notice and hearing, annually approve a renewable energy factor that shall be a nonbypassable surcharge payable by every customer of an alternative electric supplier, cooperative electric utility, electric utility, or municipal utility. 
 
Biodiesel – Reduce Trucking Fee
This legislation, HB 5856 (Moffitt, R-Galesburg), provides that, beginning January 1, 2009 and through December 31, 2014, for each registration year, the owner of a vehicle for which biodiesel has been purchased during the previous registration year is entitled to a reduction of the commercial distribution fee for that vehicle. The amount of the reduced fee will be based upon the amount of biodiesel purchased.   This fee was established in 2003 as part of the numerous new and increased taxes and fees placed on Illinois’ businesses.
 
Recycling Plastic Bottles
This measure, HB 5568 (Coulson, R-Glenview), sets out that the IEPA has the duty to develop a statewide recycling program to promote the practice of recycling materials throughout the state, including, but not limited to, the recycling of plastic bottles used for beverages.
 
Mercury Thermostat Take-Back Program
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. This bill was amended in committee to delete a provision that thermostat retailers may not sell non-mercury thermostats unless they provide educational materials. The amendment also added a requirement that the IEPA develop an educational template to be made available to businesses and consumers to inform them about programs for the collection of mercury thermostats.
 
Lake Michigan Notification Water Pollution Permits
This bill, HB 5256 (Bellock, R-Westmont), requires the Director of the IEPA to seek negotiations with each state that borders Lake Michigan to establish a notification policy under which the states will notify one another when permitting new sources of water pollution or increased levels of pollution into Lake Michigan.
 
Pesticides – Protect Bees
This measure, HB 4801 (Sacia, R-Freeport), amends the Bees and Apiaries Act, mandating the Department of Agriculture to adopt rules requiring any owner of property that is adjacent to a registered apiary to: (1) establish a buffer zone when spraying pesticides that are potentially harmful to bees; or (2) use only pesticides that are not harmful to bees.
 
Green Cleaning Policy for State Buildings
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. If this bill ever becomes law, 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. 
 
Site Remediation Programs
This bill, HB 4711 (Holbrook, D-Belleville), amends the Environmental Protection Act concerning the Site Remediation Program to provide that certain limitations on liability and cost recovery for site remediation do not apply to sites: (1) that are subject to any remediation or remedial activity regulated under a state program authorized, approved, or delegated pursuant to any federal environmental statute; or (2) that do not qualify to participate in the Site Remediation Program. The bill further provides that sites that are subject to post-closure, corrective action, or remediation requirements under the federal or state solid hazardous waste laws do not qualify to participate in the Site Remediation Program. It also specifies that a definition of "remedial action" applies only to the provisions concerning the Site Remediation Program.
 
IEPA “Clean-Up” Bill
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.
 
Ballast Water - Aquatic Nuisance Species
This legislation, HB 4800 (Bellock, R-Westmont), requires all oceangoing vessels engaging in port operations in this state to obtain a permit, with a fee, from the IEPA for an oceangoing vessel only if: (1) the applicant can demonstrate that the oceangoing vessel will not discharge aquatic nuisance species; or (2) if the oceangoing vessel discharges ballast water or other waste or waste effluent, that the operator of the vessel will use environmentally sound technology and methods, as determined by the agency, that can be used to prevent the discharge of aquatic nuisance species.
 
PCBs in Landfills
This measure, HB 4231 (Mitchell, R-Forsyth), provides that any municipal solid waste landfill that, on or after October 1, 2007, has applied for a permit from the USEPA to accept wastes with a concentration of greater than 50 parts per million of polychlorinated biphenyls (PCBs), as provided under the federal Toxic Substances Control Act, must also seek and obtain consent from the applicable county or municipality before accepting that waste, which will not be granted unless approved by referendum.
 
LEED – Green State Buildings
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. 
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OTHER MAJOR ISSUES ALSO FAIL TO ADVANCE
 
Tax Increases
The Senate defeated a proposed change to the state’s constitution to enact a graduated income tax.  The proposal, SJRCA 92 (Frerichs, D-Champaign), only would allow lawmakers to put in place some form of graduated rate, or sliding scale, on the state income tax. It did not specify what the new rates would be. The new rates would be left up to the General Assembly to do through the regular lawmaking process. This Constitutional Amendment needed to be approved by a three-fifths margin in both the House and Senate, and then submitted to voters in a statewide referendum a full 6 months before the November 4 election. Since the House and Senate failed to pass these measures by the May 4 deadline, no proposed changes to our state’s constitution will be on the November ballot.
 
This proposal is slightly different from another measure that was defeated in the House. That measure, HJRCA 42 (Smith, D-Canton),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.” 
 
Meanwhile, another proposal, SB 2288 (Meeks, D-Chicago), was on the Senate Floor awaiting action at the time of adjournment that would raise the income tax rate on individuals from 3% to 5% and for corporations from 4.8% to 8%. As this is a regular piece of legislation, the governor would have to sign this for it to become law. Governor Blagojevich has made a “no income or sales tax increase on individuals” a cornerstone of his campaign and administration. So far, he has held onto that position with veto threats. 
 
As always, CICI will keep you abreast of any developments on this or any other attempts to raise taxes.
 
Paid Sick Leave
This proposal, HB 5320 (Hamos, D-Evanston), creates the Healthy Workplace Act, requiring an employer to provide an employee up to 7 sick days with pay during each 12-month period. The employee may use the sick days for physical or mental illness, injury, medical condition, professional medical diagnosis or care, or a medical appointment of the employee or a family member.
 
Prevailing Wage for Enterprise Zones & TIF Districts
This measure, HB 773 (Fritchey, D-Chicago), proposes to extend the Prevailing Wage Act to all projects in an enterprise zone or a TIF district, even for projects that are 100% financed from private sources, with the exception for single or multi-family owner/occupied projects. The proposal also makes other administrative changes that would overturn recent court decisions protecting contractors.
 
Recall of Elected officials
The issue of recalling elected officials came to an abrupt end with the Senate failing to pass their own version of a constitutional amendment, SJRCA 70 (Cronin, R-Elmhurst), that would have allowed a recall election. The vote was 3 shy of passing to the House, which was waiting on Senate action before adjournment. A similar measure, HJRCA 28 (Franks, D-Woodstock), became stalled in the Senate as the Senate sponsor (Trotter, D-Chicago) refused to call the measure for a vote. Under tremendous pressure from numerous newspaper editorial boards, the Senate advanced their own proposal that was ultimately defeated. 
 
The proposal would let voters in November decide whether to change the state constitution to allow removal of politicians during their terms if enough voters demand it. The measure would apply to all state-level Executive Officers, General Assembly members, and all elected judges and local officials. A similar measure already passed the House, largely on the strength of bipartisan anger towards Governor Blagojevich, but did not include the Lt. Governor, judges or other locally elected officials.
 
The proposed new system would be similar to the one available in 18 other states that allow recall elections, much like California did in 2003 that brought Governor Schwarzenegger into office.
 
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.
 
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