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Newsletters
CICI Legisletter July 18, 2008
Volume 22 - Issue 18

HOUSE RESTORES SOME BUDGET CUTS, SENATE ACTION UNLIKELY
 
As you may recall last week, Governor Blagojevich cut $1.4 billion out of the recently passed state budget. The House this week successfully voted to restore about $480 million of those cuts, mostly for hospitals, nursing homes, and state personnel lines. However, these restorations may be futile as the Senate would need to follow suit by the 24th of July. Senate President Emil Jones (D-Chicago) has already publicly stated that the Senate would likely not convene again until the Fall Session unless revenue increases are passed by the House. The House took up no revenue measures this week. That is good news for CICI and the business community as there were no new or increased taxes or fees, eliminations of tax credits and incentives, or even fund sweeps to pay for this year’s budget.
 
The House did try to restore the reductions or the total eliminations of a few business grants but all efforts failed. These reductions included the Employer Training Incentive Program (ETIP) grants and various other business development programs totaling $25 million. Further, the funds for Department of Agriculture research of $3.4 million, the reductions of $3.5 million for Soil and Water Conservation Districts, and the elimination of $2.1 million in funding for water quantity analysis and management, including $1.14 million for Chicago Metropolitan Agency for Planning (CMAP), were all included in a Senate Appropriations bill that was reduced or otherwise line-item vetoed. Since the Senate has not acted on these cuts, it’s likely that these reductions will remain in place.
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ONCE STALLED LEGISLATION ADVANCES 
 
Clean Coal Legislation – Utility Rate Hikes – Passed House
CICI and many in the business community opposed this measure, SB 1987 (Trotter, D-Chicago), that could ultimately mean utility rate increases and hindered competition in the electricity market for industrial customers. This legislation was stalled the last day of regular session when it only received 50 “Yes” votes in the House, 10 shy of the 60 “Yes” votes needed for passage. An agreement by some of the state’s utilities and the environmental community made the bill’s passage possible. The bill now heads to the Senate for further action when they return in November.   
 
The legislation essentially bets with ratepayers’ 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 could increase by tens of millions of dollars annually once the facility is completed which at the earliest would be @ 2015. The legislation further mandates 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. CICI will continue to oppose SB 1987.
 
Electronic Recycling/E-Waste – Sent to Governor
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 and now heads to Governor Blagojevich. 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 was successful in making sure chemicals products were not banned in electronic devices. 
 
Autism Coverage – Awaiting Final Action in the House
This measure, HB 415 (Graham, D-Chicago), creates a new health care mandate covering autism. The bill would specifically provide that the coverage would be subject to a maximum benefit of $36,000 per year, but shall not be subject to any limits on the number of visits to an autism service provider. It is estimated that there are 26,000 cases of autism in Illinois. According to fiscal estimates, passage of this mandate could ultimately cost employers close to a billion dollars per year. This language was added in the Senate, passed overwhelmingly with 36 “YES” votes, 0 “NO” votes, and 4 “PRESENT” votes, and now awaits final action in the House.
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GENERAL MEMBERSHIP MEETING & GOLF OUTING AUGUST 21
 
CICI’s General Membership Meeting and Golf Outing will be held Thursday, August 21 at the Klein Creek Golf Club in Winfield at 1N333 Pleasant Hill Rd. State Senator John Milner (R-St. Charles) will be this year’s luncheon speaker and will be discussing the upcoming elections and what it means for the chemical industry. The day’s events begin at 9:30 a.m. with the General Membership/Open Board of Directors meeting with lunch served at 11:45 a.m. followed by a shotgun start, scramble format at 1:30 p.m. The meeting registration is available at: http://www.cicil.net/events/calendar/event.asp?EVENT_ID=17&
 
If your company has any promotional items or gifts to donate for the golf outing, your support would be greatly appreciated. Please send items to the Des Plaines office at 1400 E. Touhy Ave., Suite 110, Des Plaines, 60018.
 
CICI is also again making hole sponsorships available at $500 per hole to benefit CHEMPAC, the only political action committee solely representing the chemical industry. CICI would like to fill out all 18 holes. Sponsorship includes a sign with your company name prominently displayed at the tee box. Corporate contributions are legal and encouraged. For more information on hole sponsorship, please contact Brad Babcook at 217/522-5805 or bbabcook@cicil.net
 
 
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: 1400 E. TOUHY AVE., SUITE 110, 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