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CICI Legisletter March 13, 2009
Volume 23 - Issue 7

GOVERNOR QUINN TO PRESENT BUDGET & LIKELY TAX HIKES
 
Governor Pat Quinn will present his budget to a joint session of the General Assembly on March 18 at noon. Quinn has already suggested increasing the state's income tax rate, at least for higher-income folks, and businesses. 

In referring to the need for a "fairer tax system," suggesting that, while painful spending cuts are also on the way, certain public programs like education must be maintained despite economic woes.  Governor Quinn wants to increase the personal exemption from $2,000 to $6,000. The Illinois income tax rate is currently fixed at 3% for individuals and 4.8% for corporations, not including the personal property replacement tax. This 5 to 8 ratio is set in the state’s constitution. Any increase in the personal income tax rate is expected to trigger an increase in the corporate tax rate. If so, Quinn’s proposal would increase the rate by 50%, from 3% to 4.5% for individuals and from 4.8% to 7.2% for corporations. This increase does not include the addition of the personal property replacement tax of 2.5%.
 
A 1% increase in the personal income tax rate could bring in @ $4 billion, dependent on what happens to the exemptions or other potential tax breaks.
 
There has also been talk of eliminating economic incentives and increasing other taxes and fees to make up for a historic budget deficit that hovers around $9 to $11 billion. Illinois budget shortfall is 14.8% of the General Revenue Fund (GRF) budget for the current fiscal year or second highest in the country.
 
In addition to these taxes, fees, and eliminating business incentives, is a proposal to hike the motor fuel tax anywhere from 8 to 25 cents per gallon to provide debt service on bonds to pay for a statewide construction program that has been languishing in the General Assembly for years.
 
CICI will inform the membership of any details as soon as Governor Quinn presents his budget this Wednesday.   
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BILLS ADVANCING THIS WEEK
 
This week was the committee deadline for all Senate and House bills. Unless bills are given an extension, for which CICI will know more about that later, bills that remained in committee after the deadline will be sent back to their respective chambers Rules or Assignments Committee. The following are bills that CICI has been tracking and/or involved with that have advanced out of committee. Next week, CICI will detail all of the bills that were either defeated or never called in committee.  
 
The following bills were amended in Committee or will be amended on the Floor
 
BPA Ban
This measure, HB 2485 (Nekritz, D-Northbrook), bans bisphenol A (BPA) in products intended for a child under 3 years of age that are used to contain food or liquid if the product contains BPA. This essentially applied to all metal canned food and beverages as well as baby bottles, sippy cups, tableware, etc. A last ditch-effort by the sponsor to rid the bill’s opposition, namely can manufacturers, resulted in a forthcoming amendment that would ban BPA in baby bottles and other baby products but not canned food and beverages. 
 
CICI, a host of business interests, and even the AFL-CIO actively opposed the bill in committee this week but to no avail as it squeaked out of committee with 4 “YES’ and 3 “NO” votes. The bill is now on the House Floor awaiting the amendment.
 
Ultimately the real target of this bill is canned food and beverages particularly infant formula. Interestingly, even with the proposed amendment none of the opposition went neutral on the bill and all organizations still continue to oppose the ban. 
 
The coalition fighting this bill are arguing the case that if BPA is not safe in baby bottles – and a whole host of health agencies around the globe, including the FDA, all agree its safe - then BPA is not safe in any application.
 
CICI and its coalition partners will continue to oppose this bill on the House Floor.  
 
Child-Safe Chemicals Act
This proposal, HB 3792 (Nekritz, D-Northbrook), creates the Child-Safe Chemicals Act. The bill originally established a Children's Health Advisory Panel to essentially investigate chemicals in children’s products. Through CICI’s opposition, an agreement was reached with the IEPA to delete the panel from the bill leaving only a clearinghouse for information pertaining to the presence of, the hazardous traits associated with, and the potential for human and environmental health effects of (1) chemicals in consumer products and (2) known or potential alternatives to those chemicals. This bill is now at the Amendment Stage on the House Floor.
 
High-Capacity Wells
This measure, SB 2184 (Garrett, D-Lake Forest), originally placed some severe restrictions and new requirements on high-capacity wells that garnered the opposition of CICI and many industry groups. An amendment will be forthcoming that will change the bill to a requirement, without any penalties, that these types of wells, register with the Illinois State Water Survey in order to get a better idea of how much water is being withdrawn and what is placed back into a well or water body. This supposedly will allow the state to know what the demands are in various parts of the state.
 
Green Infrastructure for Clean Water
This piece of legislation, HB 2434 (Nekritz, D-Northbrook), once created the Green Infrastructure for Clean Water Act, requiring the IEPA to adopt comprehensive storm water management rules that meet certain requirements by July 1, 2012. This will be changed through an amendment to set up a task force to study this issue.
 
Pesticides/Lawn Care Products Application and Notices
This bill, SB 1769 (Steans, D-Chicago), now requires applicators for hire to, upon request, provide their customers or any person whose property abuts or is adjacent to the property of their customers with a copy of the material safety data sheet and approved pesticide registration label of each applied lawn care product. The written notification required by the introduced bill may not occur by bulletin board and changes the notification period from 2 to 4 days. 
 
The bill now also requires each licensed day care center to ensure that lawn care products will not be applied to day care center grounds when children are present at the center or on its grounds. And finally, it requires toys and other items mouthed or handled by children to be removed from the grounds before lawn care products are applied.
 
Phosphorous Turf Fertilizer Restrictions, Bans
This bill, HB 3817 (Ryg, D-Vernon Hills), now only creates the Phosphorous in Water Task Force, which is comprised of the Chairman of the Illinois Green Government Coordinating Council, who serves as Task Force Chairman, and 9 other members. The goals of this task force include drafting (1) a model phosphorous fertilizer ban for municipalities and other local governments and (2) a report that recommends ways to reduce the application of phosphorous fertilizer in residential and urban areas and that describes best policies and practices for phosphorous management in Illinois waterways.
 
Mercury-Containing Compact Fluorescent Bulbs
This bill, HB 2429 (May, D-Highland Park), requires the IEPA to create an Internet Web site containing certain information about compact fluorescent lighting by October 1, 2009. The bill also requires the IEPA to collaborate with certain entities to inform consumers about the proper disposal of compact fluorescent lighting. The bill further requires the Department of Central Management Services, in collaboration with the Department of Commerce and Economic Opportunity and the IEPA, to review and revise procurement specifications for lamps and ballasts purchased by the state.
 
Clean Construction or Demolition Debris
This proposal, HB 2264 (Holbrook, D-Belleville), now amends the Environmental Protection Act in a section concerning Clean Construction or Demolition Debris (CCDD) fill operations by inserting (1) a provision requiring applications for certain CCDD authorizations to contain a site reclamation plan that addresses potential hazards to public health and safety (now, a site reclamation plan is not required) and (2) a provision authorizing the IPCB to adopt regulations for the use of CCDD at current or former quarries, mines, or other excavations that have a site reclamation plan that addresses potential hazards to public health and safety (now, a site reclamation plan is not required).
 
Bills Advancing Without Any Changes
 
Environmentally Preferable Purchasing
This measure, HB 4035 (Tryon, R-Crystal Lake), requires that state agencies procure environmentally preferable supplies and services and authorizes a state agency to give a price preference of up to 10% for an environmentally preferable supply or service.
 
Investigating Biological and Chemical Agents
This proposal, HB 3922 (Harris, D-Chicago), mandates that the Department of Public Health (IDPH) shall investigate the causes of dangerously contagious or infectious diseases and the health effects, health conditions, or health ailments related to a biological, chemical, radiological, or nuclear event (instead of dangerously contagious or infectious diseases).
 
Energy Efficient Building Code for Residential Buildings
This bill, HB 3987 (Hamos, D-Evanston), amends the Energy Efficient Commercial Building Act, making the law applicable to all buildings (now, all commercial buildings). The bill also provides that the Capital Development Board (CDB) must adopt the specified energy conservation code as the minimum requirements for commercial buildings and as the minimum and maximum requirements for the construction of residential buildings. Further, units of local government may not regulate energy efficient building standards for residential buildings in a manner that is either less or more stringent than the standards in the bill and they may not enact any annexation ordinance or resolution, or require or enter into any annexation agreement, that imposes energy efficiency building standards for residential buildings that are either less or more stringent than the energy efficiency standards. Any unit of local government that has adopted any previously published editions of the International Energy Conservation Code on or before January 1, 2009 may continue to regulate energy efficient building standards under that Code and any supplements the unit of local government has adopted prior to January 1, 2009.
 
Public Health Advocates
This proposal, HB 3814 (Davis, M, D-Chicago), creates the Public Health Advocates Act to establish Public Health Advocates as a nonprofit membership corporation to effectively represent the interests of Illinois health care consumers. This would be similar to a Citizens Utility Board (CUB) organization. What brought this bill to the attention of CICI was a requirement of this nonprofit corporation to educate the public on environmental concerns and pharmaceutical dangers. CICI’s main concern is that these educational materials and information be based upon sound, peer-reviewed science and not junk science and fear mongering. CICI is still opposed to the bill and will work with other interests to address our concerns.
 
Beneficial Use Determinations
This proposal, SB 2034 (Garrett, D-Lake Forest), authorizes the IEPA to make written determinations that certain materials that would otherwise be required to be managed as waste may be managed as non-waste if those materials are used beneficially and in a manner that is protective of human health and the environment. The bill requires applicants for beneficial use determinations to demonstrate that (1) the chemical and physical properties of the material are comparable to similar commercially available materials, (2) the market demand for the material meets certain requirements, (3) the material is legitimately beneficially used, (4) the management and use of the material will not cause, threaten, or allow the release of any contaminant into the environment, except as authorized by law, and (5) the management and use of the material otherwise protects human health and safety and the environment. It also authorizes applicants to seek review of the IEPA’s written decisions to disapprove of an application for a determination or to approve of it with conditions. These determinations will be effective for a period approved by the IEPA, but that period may not exceed 5 years. Finally, the bill authorizes certain materials to maintain their non-waste status after the effective period of the determination under certain conditions and prohibits recipients of a determination from managing or using the material that is the subject of the determination in violation of the determination or any conditions imposed by it, unless the material is managed as waste.
 
Clean Air Fast-Track Rulemaking
This bill, HB 3859 (Franks, D-Woodstock), reenacts a section concerning fast-track rulemaking for the Clean Air Act, providing that if the Clean Air Act Amendments of 1990 require the adoption of rules other than identical in substance rules, then the IPCB must adopt rules under fast-track rulemaking if requested to do so by the IEPA. 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 in any fast-track rulemaking proceeding.
 
High Energy Efficiency Boilers
This proposal, HB 3698 (Fortner, R-West Chicago), requires the Department of Commerce and Economic Opportunity to establish a grant program to encourage the purchase and installation of high energy efficiency boilers in commercial buildings and multi-family residential buildings.
 
Mold Remediation
This legislation, HB 4231 (Schmitz, R-Batavia), amends the Mold Remediation Registration Act to provide that the Department of Public Health (IDPH) must (instead of may) adopt rules to implement a program for parties that provide mold remediation services to register with the state. The IDPH must submit emergency rules to the Joint Committee on Administrative Rules to implement the registration of mold remediation professionals and they may charge a registration fee to cover the costs of administration and enforcement.
 
Clean Construction/Demolition Debris
This bill, SB 2285 (Harmon, D-Oak Park), provides that urban soil and urban clean construction or demolition debris taken to a clean construction or demolition debris fill operation is not waste. The bill defines "urban soil" as soil that is excavated and removed from sites within the boundaries of a municipality with a population in excess of 1 million (Chicago) and that has not been the subject of a release of contaminants but may nonetheless contain contaminants due to certain causes. The bill also defines "urban clean construction or demolition debris" as specified paving materials that are excavated from a construction or demolition site within the corporate boundaries of Chicago. The bill requires the owner of a site from which urban soil only is removed, prior to authorizing the transfer of that soil, to perform or cause to be performed: (1) a Phase I Environmental Audit or an historical or regulatory database search, such as that set forth in the Standard Practice for Limited Environmental Due Diligence: Transaction Screen Process (ASTM E 1528-06), (2) a Phase II Environmental Audit (under some circumstances), and (3) testing of representative samples of the soil using specific methods. The bill also requires the owner to certify certain information to the clean construction or demolition debris fill operator and requires fill operations that accept urban soil to develop and implement a Receipt Control and Screening Plan that ensures the receipt of certification documents.
 
Used Tire Violations
This measure, SB 2103 (Hunter, D-Chicago), authorizes the IEPA to issue an administrative citation and impose a civil penalty if any person (1) causes or allows water to accumulate in used tires, (2) fails to collect the new or used tire fee as required by Section 55.8, (3) fails to file a State tax return listing, among other things, the number of tires sold at retail during the past calendar year as required by Section 55.10, or (4) transports used or waste tires in violation of the registration and vehicle placarding requirements adopted by the Pollution Control Board.
 
NPDES Construction-Site Storm Water Permits
This proposal, SB 2121 (Demuzio, D-Carlinville), limits the circumstances under which the IEPA must send a fee notice to existing NPDES permittees. The bill exempts NPDES construction-site storm water permittees who meet certain requirements from paying an annual NPDES construction-site storm water permit fee after payment of an initial annual fee of $500 before January 1, 2010 or $750 on and after January 1, 2010. Currently, NPDES construction-site storm water permittees must pay $500 initially and $500 each subsequent year, except if a permit is issued during the months of January through June, then the permittee may be exempt from paying an annual fee during the 12 months beginning July 1 that immediately follow the period for which the initial annual fee was due. Under existing law and this bill, the IEPA may prorate the initial annual fee in the case of permits issued during the months of January through June.
 
Water Quality and Effluent Standard for Boron
This measure, SB 2122 (Jones, E., D-Chicago), provides that the IPCB must conduct a regulatory proceeding to determine the appropriate water quality and effluent standard for boron, if any and prohibits the state from enforcing the state Boron standard, unless and until the IPCB determines, in the regulatory proceeding described above, whether Boron standards are appropriate in Illinois.
 
IEPA Bill - Various
This measure, SB 2145 (Haine, D-Alton), amends the Asbestos Abatement Act, deleting a provision requiring the Department of Public Health to (1) require local educational agencies to submit to them certain asbestos related response action contracts for which the agency seeks indemnification and (2) collect from the agency a certain percentage of each response action contract for deposit into the Response Contractors Indemnification Fund. The bill also amends the Response Action Contractor Indemnification Act to provide that, 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. The bill further 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 a vehicle conversion occurred, rather than within the same calendar year, as is currently required. Finally, the bill repeals the Hazardous Waste Crane and Hoisting Equipment Operators Licensing Act and the Hazardous Waste Laborers Licensing Act.
 
Green Cleaning for State Buildings
This proposal, HB 2437 (May, D-Highland Park), provides that every state-owned building establish a green cleaning policy whereby the building buys and uses only environmentally-sensitive cleaning products. They can deplete its existing cleaning and maintenance supply stocks and allows exemptions for buildings if adhering to these requirements would not be economically feasible
 
Single Billing – Natural Gas
This piece of legislation, HB 2527 (Holbrook, D-Belleville), amends the Alternative Gas Supplier Law in the Public Utilities Act to provide that "single billing" means the combined billing of the services provided by both a natural gas utility and an alternative gas supplier to any customer who has enrolled in a customer choice program.
 
Repeal Commercial Distribution Fee
This bill, SB 1434 (Sandoval, D-Cicero), repeals the annual commercial distribution fee on vehicles of the second division weighing more than 8,000 pounds that was enacted under Blagojevich’s first budget in 2003.
 
Energy Grant Money
This measure, HB 1042 (May, D-Highland Park), creates the Illinois Energy Efficiency and Conservation Block Grant Act so that the Green Governments Coordinating Council shall be the State governmental body responsible for applying for and distributing any and all energy efficiency and conservation grant money pursuant to the federal Energy Independence and Security Act of 2007.
 
Motor Fuel Taxes, Fees
This measure, HB 75 (Holbrook, D-Belleville), extends the sunset date for the state’s Motor Fuel Tax Law and the Environmental Impact Fee Law until January 1, 2025 (instead of January 1, 2013).
 
Renewable Fuels Assistance Bills
This proposal, HB 680 (Moffitt, R-Galesburg), amends the Illinois Renewable Fuels Development Program, authorizing the Department of Commerce and Economic Opportunity (DCEO) to award, in excess of the annual aggregate grant total, up to $4,000,000 to a grant applicant who installs advanced technologies for water usage, carbon footprint reduction, and other blending improvements designed to optimize processes at the applicant’s renewable fuels facility.
 
Professional Engineers
This bill, SB 1384 (Haine, D-Alton), extends the repeal date of the Professional Engineering Practice Act from January 1, 2010 to January 1, 2020 and also provides that services performed by employees of a business organization engaged in telecommunications are exempt from the Act. The bill further provides additional examples of "professional engineering practice", changes the definition of "technical submissions", and that the Department of Professional and Financial Regulation (DFPR) may grant the title "Professional Engineer, Retired" and, by rule, exempt from continuing education requirements those who are granted the title. Those granted the title "Professional Engineer, Retired" may request restoration to active status under the applicable provisions of the Act.
 
Professional Geologists/Interns
This proposal, HB 880 (Connelly, R-Naperville), amends the Professional Geologist Licensing Act to provide for the enrollment with the DFPR of Geologist Interns.
 
Environmental Health Practitioners
This legislation, HB 1119 (Coulson, R-Glenview), amends the Environmental Health Practitioner Licensing Act to require DFPR to issue a license as a licensed environmental health practitioner to any applicant who holds a Registered Environmental Health Specialist/Registered Sanitarian credential in good standing with the National Environmental Health Association.
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2 GOP CANDIDATES ANNOUNCE FOR GOVERNOR
 
Even though the 2010 Gubernatorial election is over a year and half away, 2 Republican candidates have announced their campaigns for the state’s top spot.  Illinois Chamber of Commerce President Doug Whitley and State Senator Bill Brady (R-Bloomington) have begun their campaigns in earnest.  To learn more about each candidacy, follow these links for Whitley: www.doug4gov.com and for Senator Brady: www.citizensforbillbrady.com
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SENATE LEADER RADOGNO TO SPEAK AT CICI LEGISLATIVE DAY
 
Mark your calendars and reserve your rooms. CICI will be holding its Annual Legislative/Regulatory Day in Springfield, Tuesday, May 5, 2009, at the President Abraham Lincoln Hotel, with an evening reception of legislators and key government officials at the Sangamo Club. 
 
Newly elected Senate Republican Leader Christine Radogno (R-Lemont) will be the keynote speaker at the Luncheon. Leader Radogno will speak about the state’s current budget problems, the potential for tax and fee increases, and other important issues affecting the business community.  
 
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 2008 reception, close to 200 legislators and government officials attended. Come thank those elected officials who are friends of the chemical industry.
 
The President Abraham Lincoln Hotel has a discounted block of rooms reserved for CICI. Reservations can be made by calling the hotel at 1-866-788-1860CICI’s block of rooms will be available until Monday, April 13, 2009, so please make your reservations accordingly.
 
 
 
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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