Grainnet

Waterloo, IL-–Illinois Gov. Rod R. Blagojevich signed a law to expand the use of cleaner, alternative fuels to benefit the environment, farmers and Illinois drivers.

House Bill 931 will now allow rebates for drivers using fuels with a minimum 20 percent biodiesel blend.

Until today, only 80 percent or higher biodiesel fuel blends had been eligible, and most diesel vehicles cannot use 80 percent blends without major modifications. “I am proud that Illinois is a national leader in the production and use of cleaner-burning fuels like biodiesel made from soybean oil.

"The action expands our commitment to increasing reliance on Illinois’ homegrown, renewable fuels,” said Gov. Blagojevich.

“Biodiesel is good for Illinois’ environment and farmers, and expanding the incentives program is good for those who buy and sell these greener, Illinois fuels.

"Looking ahead, we are adding hydrogen to our list of alternative fuels as we anticipate more hydrogen vehicles on our roads in the future.” “Making 20 percent or higher biodiesel fuel blends eligible for Illinois EPA rebates is another important step by the General Assembly and the Governor and another reason why Illinois is a leader in producing and using alternative fuels,” said bill sponsor Sen. Deanna Demuzio (D-Carlinville). “Alternative fuels are cleaner, greener and becoming more affordable. Expanding their use now provides economic, environmental and energy benefits for Illinois today,” said Rep. Brandon Phelps (D-Harrisburg), the House sponsor. Under the current Illinois EPA program, there are three types of rebates designed to reimburse consumers for the additional costs of:

· purchasing an alternate fuel vehicle;

· converting a vehicle to run on an alternate fuel, and

· consistently using an alternate fuel instead of gasoline or diesel. The maximum amount for any rebate is $4,000 per vehicle and may vary by fuel.

The eligible fuels include biodiesel (B20 and higher blends), E-85, natural gas, propane, and hydrogen, a new addition.

The expanded alternative fuels program will be funded with existing appropriations from the Alternate Fuels Fund.

The bill goes into effect immediately. Gov. Blagojevich’s support of House Bill 931 is consistent with numerous other steps he has taken in just over two years to advance the ethanol and biodiesel industry in Illinois, including: · Announcing $1 million in Opportunity Returns funding for the National Corn to Ethanol Research Center at Southern Illinois University Edwardsville to support the center’s role in technological innovation to continue to reduce the costs of ethanol production; · Announcing $500,000 in Opportunity Returns funding to increase access to E-85, an advanced hybrid of ethanol, and allow more gas station operators to offer the 85 percent ethanol fuel; · Providing $4.8 million to the Lincolnland Agri-Energy Ethanol plant in Palestine, to help the plant succeed in closing on private financing for the project - the plant is now producing more than 40 million gallons of ethanol per year; · Signing an Executive Order requiring increased use of both ethanol and biodiesel by state employees, similar to the measure included in the federal proposal; · Signing legislation in 2003 to eliminate the state sales tax on E-85, allowing the fuel to retail for 10 to 15 cents per gallon cheaper than regular unleaded gasoline, and eliminating the state sales tax on biodiesel blends of 11% and higher (“B11”).

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