Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0041 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0041 Introduced 1/13/2025, by Sen. David Koehler SYNOPSIS AS INTRODUCED: New Act Creates the Clean Transportation Standard Act. Establishes a clean transportation standard to reduce lifecycle carbon intensity of fuels for the ground transportation sector by specified amounts. Provides for related rulemaking and calculations. Provides that the clean transportation standard shall take the form of a credit marketplace monitored by the Environmental Protection Agency. Provides for verification and data privacy requirements for the Agency. Provides for penalties for failing to offset deficits in certain situations, and for penalties for submitting false information. Exempts airline, rail, ocean-going, and military fuel. Provides that the Agency must develop a periodic fuel supply forecast. Establishes findings. Defines terms. Contains other provisions. Effective immediately. LRB104 06940 BDA 16977 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0041 Introduced 1/13/2025, by Sen. David Koehler SYNOPSIS AS INTRODUCED: New Act New Act Creates the Clean Transportation Standard Act. Establishes a clean transportation standard to reduce lifecycle carbon intensity of fuels for the ground transportation sector by specified amounts. Provides for related rulemaking and calculations. Provides that the clean transportation standard shall take the form of a credit marketplace monitored by the Environmental Protection Agency. Provides for verification and data privacy requirements for the Agency. Provides for penalties for failing to offset deficits in certain situations, and for penalties for submitting false information. Exempts airline, rail, ocean-going, and military fuel. Provides that the Agency must develop a periodic fuel supply forecast. Establishes findings. Defines terms. Contains other provisions. Effective immediately. LRB104 06940 BDA 16977 b LRB104 06940 BDA 16977 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0041 Introduced 1/13/2025, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
3	3	New Act New Act
4	4	New Act
5	5	Creates the Clean Transportation Standard Act. Establishes a clean transportation standard to reduce lifecycle carbon intensity of fuels for the ground transportation sector by specified amounts. Provides for related rulemaking and calculations. Provides that the clean transportation standard shall take the form of a credit marketplace monitored by the Environmental Protection Agency. Provides for verification and data privacy requirements for the Agency. Provides for penalties for failing to offset deficits in certain situations, and for penalties for submitting false information. Exempts airline, rail, ocean-going, and military fuel. Provides that the Agency must develop a periodic fuel supply forecast. Establishes findings. Defines terms. Contains other provisions. Effective immediately.
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11	11	1 AN ACT concerning transportation.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 1. Short title. This Act may be cited as the Clean
15	15	5 Transportation Standard Act.
16	16	6 Section 5. Findings. The General Assembly finds that:
17	17	7 (1) The transportation sector in this State is a
18	18	8 leading source of criteria air pollutants and greenhouse
19	19	9 gas emissions, which collectively endanger public health
20	20	10 and welfare by causing and contributing to increased air
21	21	11 pollution and climate change.
22	22	12 (2) Shifting from petroleum-based transportation fuels
23	23	13 to alternative fuels has the potential to significantly
24	24	14 reduce transportation emissions of air pollutants and
25	25	15 greenhouse gases and is recommended by the
26	26	16 Intergovernmental Panel on Climate Change as an important
27	27	17 pathway for holding global warming at 1.5 degrees Celsius.
28	28	18 A clean transportation standard would promote innovation
29	29	19 in, and production and use of, nonpetroleum fuels that
30	30	20 reduce vehicle-related and fuel-related air pollution that
31	31	21 endangers public health and welfare and disproportionately
32	32	22 impacts disadvantaged communities.
33	33	23 (3) Credits generated through the use of clean fuel
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0041 Introduced 1/13/2025, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
38	38	New Act New Act
39	39	New Act
40	40	Creates the Clean Transportation Standard Act. Establishes a clean transportation standard to reduce lifecycle carbon intensity of fuels for the ground transportation sector by specified amounts. Provides for related rulemaking and calculations. Provides that the clean transportation standard shall take the form of a credit marketplace monitored by the Environmental Protection Agency. Provides for verification and data privacy requirements for the Agency. Provides for penalties for failing to offset deficits in certain situations, and for penalties for submitting false information. Exempts airline, rail, ocean-going, and military fuel. Provides that the Agency must develop a periodic fuel supply forecast. Establishes findings. Defines terms. Contains other provisions. Effective immediately.
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43	43	A BILL FOR
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68	68	1 under this Act will promote innovation and investment in
69	69	2 clean fuels.
70	70	3 Section 10. Definitions. As used in this Act:
71	71	4 "Agency" means the Environmental Protection Agency.
72	72	5 "Aggregator" or "credit aggregator" means a person who
73	73	6 registers to participate in the clean transportation standard
74	74	7 program on behalf of one or more credit generators to
75	75	8 facilitate credit generation and to trade credits.
76	76	9 "Aviation fuel" means a fuel suitably blended to be used
77	77	10 in aviation engines.
78	78	11 "Backstop aggregator" means a qualified nonprofit entity
79	79	12 approved by the Agency to aggregate credits for electricity
80	80	13 used as a transportation fuel when those credits would not
81	81	14 otherwise be generated.
82	82	15 "Board" means the Pollution Control Board.
83	83	16 "Carbon intensity" means the amount of lifecycle
84	84	17 greenhouse gas emissions per unit of fuel energy expressed in
85	85	18 grams of carbon dioxide equivalent per megajoule.
86	86	19 "Clean fuel" means a transportation fuel that is
87	87	20 domestically produced and has a carbon intensity below the
88	88	21 clean transportation standard carbon intensity standard in a
89	89	22 given year.
90	90	23 "Clean transportation standard" means the standard adopted
91	91	24 by the Board under Section 15 for the reduction, on average, of
92	92	25 lifecycle carbon intensity of fuels used for on-road
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103	103	1 transportation. If there is an industry-accepted standard for
104	104	2 calculating the carbon intensity of different modes of
105	105	3 transportation, such as off-road, light rail, and other forms
106	106	4 of mass transportation, the Board shall adopt that standard
107	107	5 for those modes of transportation.
108	108	6 "Consumer Price Index for All Urban Consumers" or "CPI-U"
109	109	7 means the index published by the Bureau of Labor Statistics of
110	110	8 the United States Department of Labor that measures the
111	111	9 average change in prices of goods and services, United States
112	112	10 city average, all items.
113	113	11 "Credit" means a unit of measure generated when clean fuel
114	114	12 is provided for use in this State, such that one credit is
115	115	13 equal to one metric ton of carbon dioxide equivalent.
116	116	14 "Credit generator" means a regulated entity that generates
117	117	15 a credit in the clean transportation standard.
118	118	16 "Deficit" means a unit of measure generated when a fuel
119	119	17 provided in this State has a carbon intensity that exceeds the
120	120	18 clean transportation standard for the applicable year,
121	121	19 expressed in metric tons of carbon dioxide equivalent.
122	122	20 "Deficit generator" means a regulated entity that
123	123	21 generates a deficit in the clean transportation standard.
124	124	22 "Fuel" means any one or more of the following that is used
125	125	23 to power vehicles or equipment for the purpose of
126	126	24 transportation: electricity or a liquid, gaseous, or blended
127	127	25 fuel, including gasoline, diesel, liquefied petroleum gas,
128	128	26 natural gas, or hydrogen.
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139	139	1 "Fuel pathway" means a detailed description of all stages
140	140	2 of a transportation fuel's production and use, including
141	141	3 feedstock growth, extraction, processing, transportation,
142	142	4 distribution, and combustion or use by an end user.
143	143	5 "Lifecycle carbon intensity" means the quantity of
144	144	6 greenhouse gas emissions per unit of energy, expressed in
145	145	7 carbon dioxide equivalent per megajoule, emitted by the fuel,
146	146	8 including both direct and indirect sources, as calculated by
147	147	9 the Agency under subsection (2) of Section 20 using the
148	148	10 methods described under Section 30.
149	149	11 "Military tactical vehicle" means a motor vehicle owned by
150	150	12 the U.S. Department of Defense or the U.S. military services
151	151	13 and used in combat, combat support, combat service support,
152	152	14 tactical or relief operations, or training for such
153	153	15 operations.
154	154	16 "Petroleum-only portion" means the component of gasoline
155	155	17 or diesel fuel before blending with ethanol, biodiesel,
156	156	18 biofuel, or other clean fuel.
157	157	19 "Provider" means:
158	158	20 (1) with respect to any liquid fuel, hydrogen fuel,
159	159	21 and renewable propane used as a fuel source for
160	160	22 transportation, the person who refines, produces, or
161	161	23 imports the fuel;
162	162	24 (2) with respect to any biomethane, the person who
163	163	25 imports or produces, refines, treats, or otherwise
164	164	26 processes biogas into biomethane used as a fuel source for
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175	175	1 transportation;
176	176	2 (3) with respect to electricity used as a fuel source
177	177	3 for transportation, the person who is the direct provider
178	178	4 of electricity, the electric vehicle charging service
179	179	5 provider, the electric utility, the electric vehicle fleet
180	180	6 operator, the electric vehicle manufacturer, and the
181	181	7 owners or operators of charging stations located on
182	182	8 commercial property; or
183	183	9 (4) with respect to other types of fuel, a person
184	184	10 determined to be the provider by the Agency.
185	185	11 "Provider" does not include the owner or operator of a
186	186	12 residential charging station.
187	187	13 "Regulated entity" means any entity, whether a credit
188	188	14 generator or deficit generator, that has registered, on a
189	189	15 mandatory or permissive basis, to participate in the clean
190	190	16 transportation standard.
191	191	17 "Sustainable aviation fuel" means an aviation fuel with a
192	192	18 carbon intensity sufficient to generate credits under the
193	193	19 clean transportation standard upon its production or supply.
194	194	20 "Tactical support equipment" means equipment using a
195	195	21 portable engine, including turbines, that meets military
196	196	22 specifications, is owned by the U.S. Department of Defense or
197	197	23 the U.S. military services or its allies, and is used in
198	198	24 combat, combat support, combat service support, tactical or
199	199	25 relief operations, or training for such operations. "Tactical
200	200	26 support equipment" includes, but is not limited to, engines
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211	211	1 associated with portable generators, aircraft start carts,
212	212	2 heaters and lighting carts.
213	213	3 Section 15. Rulemaking and baseline calculations for clean
214	214	4 transportation standard.
215	215	5 (a) To the extent allowed by federal law, within 24 months
216	216	6 after the effective date of this Act, the Agency shall propose
217	217	7 and the Board shall adopt rules establishing a clean
218	218	8 transportation standard in order to reduce, within 10 years of
219	219	9 the adoption of the Agency's rules by the Board, the lifecycle
220	220	10 carbon intensity of fuels for the ground transportation sector
221	221	11 by 25% below the 2019 baseline level as calculated under this
222	222	12 Section. After the 25% reduction described in this Section is
223	223	13 attained, the Agency shall prepare a report that proposes
224	224	14 further reductions in the lifecycle carbon intensity of fuels
225	225	15 for the ground transportation sector for the following 10
226	226	16 years. The report prepared by the Agency shall include
227	227	17 proposed changes to this Act that are required to implement
228	228	18 those reductions. The rules proposed and adopted shall be
229	229	19 subject to public notice and comment under the Illinois
230	230	20 Administrative Procedure Act. The Board may recommend to the
231	231	21 General Assembly reductions to the clean transportation
232	232	22 standard below those adopted in accordance with this Act,
233	233	23 using factors, including, but not limited to, advances in
234	234	24 clean fuel technology. The rules adopted by the Board under
235	235	25 this Section shall include fees for the registration of
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246	246	1 regulated entities to offset the costs incurred by the Board
247	247	2 and the Agency that are associated with implementing the clean
248	248	3 transportation standard. These fees shall be used only in
249	249	4 connection with the administration of the program and may be
250	250	5 levied differently based on whether a regulated entity is a
251	251	6 credit generator or deficit generator. Except where otherwise
252	252	7 provided in this Act, the Agency shall consider rules that are
253	253	8 harmonized, to the extent practicable, with the regulatory
254	254	9 standards, exemptions, reporting obligations, and other clean
255	255	10 transportation standard compliance requirements and methods
256	256	11 for credit generation of other states that have adopted
257	257	12 low-carbon fuel standards or similar greenhouse gas emissions
258	258	13 requirements applicable specifically to transportation fuels.
259	259	14 (b) The Agency shall calculate the baseline carbon
260	260	15 intensities of the petroleum-only portion of all
261	261	16 transportation fuels produced or imported in 2019 for use in
262	262	17 this State by:
263	263	18 (1) reviewing and considering the best available
264	264	19 applicable scientific data and calculations; and
265	265	20 (2) using a lifecycle emissions, performance-based
266	266	21 approach that is technology-and-feedstock neutral.
267	267	22 Section 20. Contents of clean transportation standard. The
268	268	23 clean transportation standard adopted by the Board, by rule,
269	269	24 shall:
270	270	25 (1) apply to all providers in the State;
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281	281	1 (2) be measured based on a lifecycle carbon intensity
282	282	2 that shall be calculated by the Agency in accordance with
283	283	3 Section 30;
284	284	4 (3) recognize voluntary farm emissions reductions that
285	285	5 contribute to the reduced carbon intensity of fuels by
286	286	6 allowing credit generators to use individualized
287	287	7 farm-level carbon intensity scoring for approved
288	288	8 sustainable agricultural practices and by requiring the
289	289	9 Agency to use the GREET model's Feedstock Carbon Intercity
290	290	10 Calculator (FD-CIC) to determine individualized farm-level
291	291	11 carbon intensity scoring;
292	292	12 (4) take into consideration the low-carbon clean
293	293	13 transportation fuel standards that are pending or have
294	294	14 been adopted in other states, including their provisions
295	295	15 related to the inclusion of additional credit
296	296	16 opportunities from activities and projects that support
297	297	17 the reduction or removal of greenhouse gas emissions
298	298	18 associated with transportation in the State, and that
299	299	19 allow regulated entities to generate credits under any
300	300	20 overlapping current and future federal transportation fuel
301	301	21 statutes and regulations;
302	302	22 (5) include a credit price cap (i) that is to be
303	303	23 determined by the Agency and confirmed by the Board to
304	304	24 contain costs if the fuel supply forecasts determine that
305	305	25 not enough credits will be available and (ii) that shall
306	306	26 be adjusted annually by the rate of inflation as measured
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317	317	1 by the most recently available 12 months of the Consumer
318	318	2 Price Index for All Urban Consumers;
319	319	3 (6) contain a structure for compliance that conforms
320	320	4 with the marketplace system described in Section 25,
321	321	5 including, but not limited to, details, such as:
322	322	6 (A) methods for assigning compliance obligations
323	323	7 and methods for tracking tradable credits;
324	324	8 (B) mechanisms that allow credits to be traded,
325	325	9 transferred, sold, and banked for future compliance
326	326	10 periods;
327	327	11 (C) mechanisms that provide for the creation of a
328	328	12 list of accepted credit transactions and a list of
329	329	13 prohibited forms of credit transactions, which may
330	330	14 include trades involving, related to, or associated
331	331	15 with any of the following:
332	332	16 (i) any manipulative or deceptive device;
333	333	17 (ii) a corner or an attempt to corner the
334	334	18 market for credits;
335	335	19 (iii) fraud or an attempt to defraud any other
336	336	20 entity;
337	337	21 (iv) false, misleading, or inaccurate reports
338	338	22 concerning information or conditions that affect
339	339	23 or tend to affect the price of a credit; and
340	340	24 (v) applications, reports, statements, or
341	341	25 documents required to be filed under this Act that
342	342	26 are false or misleading with respect to a material
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353	353	1 fact or that omit a material fact necessary to
354	354	2 make the contents therein not misleading;
355	355	3 (C) procedures for verifying the validity of
356	356	4 credits and deficits generated under the clean
357	357	5 transportation standard;
358	358	6 (D) mechanisms by which persons associated with
359	359	7 the supply chains of transportation fuels that are
360	360	8 used for purposes that are exempt from the clean
361	361	9 transportation standard described in Section 40 and
362	362	10 persons that are associated with the supply chains of
363	363	11 transportation fuels and will generate credits may
364	364	12 register with the Agency to participate in the clean
365	365	13 transportation standard program; and
366	366	14 (E) an administrative procedure by which a
367	367	15 regulated entity may contest the Board's or Agency's
368	368	16 calculation prior to the levying of a penalty for
369	369	17 failure to remedy a given deficit;
370	370	18 (F) procedures that will allow the Agency to
371	371	19 cancel or reverse (i) a credit transfer that is
372	372	20 determined to be a prohibited transaction under items
373	373	21 (i) through (v) of subparagraph (B) or (ii) any other
374	374	22 prohibited transaction as determined by the Board in
375	375	23 rulemaking;
376	376	24 (7) contain a program review procedure whereby the
377	377	25 Board or Agency shall, every 3 years after the
378	378	26 implementation of the clean transportation standard,
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389	389	1 solicit feedback from and consult with representatives
390	390	2 from stakeholder groups, including representatives from
391	391	3 the fuel production industry, the transportation industry,
392	392	4 the agricultural industry, environmental advocacy
393	393	5 organizations, labor organizations, representatives from
394	394	6 impacted environmental justice communities, as defined in
395	395	7 Section 801-10 of the Illinois Finance Authority Act, and
396	396	8 representatives from related State agencies; the substance
397	397	9 of the consultations shall include, but may not be limited
398	398	10 to, a review of the economic impact of the clean
399	399	11 transportation standard, whether the clean transportation
400	400	12 standard is adhering to the established carbon intensity
401	401	13 reduction goals, the health impact of the emissions
402	402	14 reductions on disadvantaged environmental justice
403	403	15 communities, as defined in Section 801-10 of the Illinois
404	404	16 Finance Authority Act, and whether access to
405	405	17 transportation has been affected as a result of the
406	406	18 implementation of the clean transportation standard;
407	407	19 (8) include annual carbon intensity reduction
408	408	20 standards that are to be met by regulated entities and
409	409	21 that result in the attainment of carbon intensity
410	410	22 reduction targets set by the Board;
411	411	23 (9) maximize benefits to the environment and natural
412	412	24 resources and develop safeguards and incentives to protect
413	413	25 natural lands and enhance environmental integrity,
414	414	26 including biodiversity;
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425	425	1 (10) aim to support, through credit generation or
426	426	2 other financial means, voluntary farmer-led efforts to
427	427	3 adopt agricultural practices that benefit soil health and
428	428	4 water quality;
429	429	5 (11) support equitable transportation electrification
430	430	6 that benefits all communities and is powered primarily
431	431	7 with low-carbon and carbon-free electricity;
432	432	8 (12) seek to improve air quality and public health,
433	433	9 targeting communities that bear a disproportionate health
434	434	10 burden from transportation pollution;
435	435	11 (13) establish, in consultation with the Department of
436	436	12 Agriculture and the Department of Transportation, a
437	437	13 procedure for determining fuel pathways that:
438	438	14 (A) is consistent for all fuel types;
439	439	15 (B) is based on science and engineering; and
440	440	16 (C) accounts for any on-site additional energy use
441	441	17 by a carbon capture technology employed in the fuel
442	442	18 production process, including, but not limited to,
443	443	19 generation, distillation, and compression;
444	444	20 (14) recognize that farmers who can demonstrate use of
445	445	21 production methods that lower the carbon intensity of
446	446	22 their commodities shall be compensated a fair market value
447	447	23 that is, at minimum, commensurate with costs associated
448	448	24 with those low-carbon production methods or shall be
449	449	25 provided a fair share of the increased market value of the
450	450	26 end-use product that their commodity is used to produce.
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461	461	1 Compensation may come in a variety of forms, including,
462	462	2 but not limited to, practice-based incentive payments,
463	463	3 outcome-based incentive payments, price premiums, or other
464	464	4 forms of payment. The Agency shall also protect farm data
465	465	5 by ensuring farmer ownership of data for a specific amount
466	466	6 of time or negotiated on an annual basis;
467	467	7 (15) contain mechanisms to excuse noncompliance from
468	468	8 enforcement action if compliance is impossible, including
469	469	9 rules that shall specify the criteria and procedures for
470	470	10 the Agency to determine whether a period of noncompliance
471	471	11 is excusable in accordance with Sections 50 and 55;
472	472	12 (16) include mechanisms by which providers who would
473	473	13 be eligible to generate credits from electricity used as
474	474	14 transportation fuel may assign their right to generate
475	475	15 credits to an aggregator, and include mechanisms by which
476	476	16 a backstop aggregator may register with the program to
477	477	17 generate credits if an electric utility opts out of the
478	478	18 program; and
479	479	19 (17) provide indirect accounting mechanisms, such as
480	480	20 book-and-claim or mass-balancing for clean fuels entering
481	481	21 fungible supply systems that can access this State.
482	482	22 Section 25. Credit market; verification and data privacy;
483	483	23 compliance and penalties.
484	484	24 (a) The clean transportation standard adopted by the Board
485	485	25 shall take the form of a credit marketplace with the following
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496	496	1 structure. The marketplace shall consist of a system of
497	497	2 credits and deficits monitored by the Agency. The Agency shall
498	498	3 compile a list of fuel pathways that providers may use to
499	499	4 generate credits. Providers seeking to be credit generators
500	500	5 must register with the Agency and attest to the transportation
501	501	6 fuels they provide in the State in order to qualify to generate
502	502	7 credits. Each deficit generator must register and comply with
503	503	8 the program. Fuels that are registered with the program must
504	504	9 have a dedicated, verifiable fuel pathway with a carbon
505	505	10 intensity score measurable by software described in Section 30
506	506	11 and assigned a unique identifier by the Agency. Providers
507	507	12 reaching or exceeding the required reduction of lifecycle
508	508	13 carbon intensity under the clean transportation standard shall
509	509	14 receive credits from the Agency upon verification described in
510	510	15 subsection (b) at the end of a reoccurring reporting period as
511	511	16 determined by the Agency. Fuel providers that are deficit
512	512	17 generators during a year shall eliminate the deficit by either
513	513	18 providing transportation fuels whose carbon intensity is at or
514	514	19 below the level of that year's annual clean transportation
515	515	20 standard or by purchasing credits to offset the deficit. The
516	516	21 system of credits created under this subsection shall provide
517	517	22 credits based on a lifecycle emissions performance-based
518	518	23 approach that is technology neutral, feedstock neutral, and
519	519	24 has the purpose of achieving transportation fuel
520	520	25 decarbonization.
521	521	26 (b) The Agency must, in collaboration with the Department
522	522
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532	532	1 of Agriculture and the Department of Transportation, establish
533	533	2 acceptable methods to verify that the transportation fuel used
534	534	3 by regulated entities has been provided following the pathway
535	535	4 bearing the unique identifier as attested by the regulated
536	536	5 entity. The Agency is authorized to contract with third party
537	537	6 verifiers to accomplish this requirement. Upon registering
538	538	7 with the program, regulated entities must agree to provide
539	539	8 data related to the registered fuel pathway used to generate
540	540	9 credits or deficits with the Agency as required to administer
541	541	10 the program. Upon registering with the program, regulated
542	542	11 entities must agree to be subject to periodic audits as
543	543	12 determined by the Agency.
544	544	13 All information gathered by or provided to the Agency or
545	545	14 contractors of the Agency, either by regulated entities,
546	546	15 agents of regulated entities, or growers of feedstock used in
547	547	16 a registered fuel pathway by regulated entities, through
548	548	17 either voluntary disclosure or audit, must not be shared by
549	549	18 the Agency with any party except in relation to the
550	550	19 administration of the clean transportation standard absent
551	551	20 written consent by the regulated entity and the entity from
552	552	21 which the data was gathered. This data must not be used for any
553	553	22 purpose outside of the administration and enforcement of the
554	554	23 clean transportation standard except by written consent from
555	555	24 the original data holder. Ownership of all data shared or
556	556	25 collected by the Agency for the administration and enforcement
557	557	26 of the clean transportation standard is retained with the
558	558
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561	561
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568	568	1 entity from which the data originates. Data protected under
569	569	2 this subparagraph does not include a regulated entity's credit
570	570	3 or deficit balance, which may be publicly disclosed by the
571	571	4 Agency.
572	572	5 (c) Deficit generators who fail to offset their deficits
573	573	6 at the conclusion of any compliance period administered by the
574	574	7 Agency shall be subject to a civil penalty established by the
575	575	8 Agency subject to the following limitations:
576	576	9 (1) the value of the penalty shall correspond to the
577	577	10 amount of deficits attributed to a given regulated entity
578	578	11 at the time the transaction has completed; and
579	579	12 (2) for every one deficit the regulated entity fails
580	580	13 to offset, the penalty for failure to offset that deficit
581	581	14 shall not exceed 10 times the value of the credit needed to
582	582	15 offset the deficit.
583	583	16 (d) Regulated entities that submit false information in
584	584	17 support of an application to register for the clean
585	585	18 transportation standard, that share false information during
586	586	19 an audit or in support of an attestation, or that otherwise
587	587	20 share false or inaccurate information to the Agency or a
588	588	21 contractor working under the direction of the Agency shall be
589	589	22 subject to penalties to be determined by the Agency by rule.
590	590	23 Penalties under this paragraph may include monetary penalties,
591	591	24 forfeiture of credits, and reversals of prohibited
592	592	25 transactions as described in subparagraph (B) of paragraph (6)
593	593	26 of Section 20. The Agency may waive penalties under this
594	594
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604	604	1 subparagraph. If the violator under this subsection is a
605	605	2 credit generator, following 3 violations, the Agency may
606	606	3 remove the violating credit generator from the clean
607	607	4 transportation standard. In determining whether penalties
608	608	5 should be applied and, if a penalty is to be applied, the
609	609	6 amount of penalties to be levied for violations under this
610	610	7 subparagraph, the Agency shall consider:
611	611	8 (1) evidence of willfulness by the regulated entity to
612	612	9 submit false information;
613	613	10 (2) the scope of the false information;
614	614	11 (3) evidence of past submissions of false information;
615	615	12 and
616	616	13 (4) efforts undertaken by the regulated entity to
617	617	14 remedy the false submission.
618	618	15 (e) The penalties provided for in this Section may be
619	619	16 recovered in a civil action brought in the name of the people
620	620	17 of the State of Illinois by the State's Attorney of the county
621	621	18 in which the violation occurred or by the Attorney General.
622	622	19 Any penalties collected under this Section in an action in
623	623	20 which the Attorney General has prevailed shall be used to
624	624	21 offset registration fees in support of the administration of
625	625	22 the clean transportation standard program. Any amount of
626	626	23 penalties collected in addition to the amount needed to
627	627	24 administer the clean transportation standard program shall be
628	628	25 deposited into the Environmental Protection Trust Fund, to be
629	629	26 used in accordance with the provisions of the Environmental
630	630
631	631
632	632
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640	640	1 Protection Trust Fund Act.
641	641	2 (f) The Attorney General or the State's Attorney of a
642	642	3 county in which a violation occurs may institute a civil
643	643	4 action for an injunction, prohibitory or mandatory, to
644	644	5 restrain violations of this Act or to require such actions as
645	645	6 may be necessary to address violations of this Act.
646	646	7 (g) The penalties and injunctions provided in this Act are
647	647	8 in addition to any penalties, injunctions, or other relief
648	648	9 provided under any other law. Nothing in this Act bars an
649	649	10 action by the State for any other penalty, injunction, or
650	650	11 other relief provided by any other law.
651	651	12 Section 30. Lifecycle carbon intensity calculations;
652	652	13 software. The lifecycle carbon intensity calculation conducted
653	653	14 by the Agency under paragraph (2) of Section 20 shall use the
654	654	15 Argonne National Laboratory's GREET model and shall include
655	655	16 all stages of fuel and feedstock production and distribution,
656	656	17 from feedstock generation or extraction through the
657	657	18 distribution, delivery, and use of the finished fuel by the
658	658	19 ultimate consumer. The Agency shall, as needed and
659	659	20 periodically as established by rule, use as up-to-date a model
660	660	21 as possible, taking into account staffing and hiring needs.
661	661	22 Carbon intensity values calculated for clean fuel pathways
662	662	23 under construction or in operation using the current version
663	663	24 of the GREET model shall be allowed if the GREET model is
664	664	25 revised during the compliance year. In calculating the
665	665
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675	675	1 lifecycle carbon intensity, the mass values for all greenhouse
676	676	2 gases that are not carbon dioxide must be adjusted to account
677	677	3 for each of their relative global warming potentials. This
678	678	4 adjustment shall be performed using the global warming
679	679	5 potential deemed most accurate by the Agency for each
680	680	6 greenhouse gas for the period during which reductions in
681	681	7 greenhouse gas emissions are to be attained under the clean
682	682	8 transportation standard. When measuring the carbon intensity
683	683	9 of clean fuels, the Agency shall use the GREET model's
684	684	10 Feedstock Carbon Intensity Calculator (FD-CIC) for the
685	685	11 purposes of accounting for variations in farming practices
686	686	12 across different fuel pathways.
687	687	13 Section 35. Investments by backstop aggregators and
688	688	14 utilities. In implementing this Act, the Agency and Board
689	689	15 shall establish rules directing participating utilities and
690	690	16 backstop aggregators under the standard to invest all revenue
691	691	17 earned from trading credits toward investments into
692	692	18 distribution, grid modernization, infrastructure and other
693	693	19 projects that support transportation decarbonization, with at
694	694	20 least 50% of such revenues supporting environmental justice
695	695	21 communities as defined in Section 801-10 of the Illinois
696	696	22 Finance Authority Act. All labor paid for with money from
697	697	23 required investments under this Section shall be subject to
698	698	24 the prevailing wage. The Agency and Board shall determine
699	699	25 projects and goals under this Act in consultation with
700	700
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710	710	1 relevant stakeholders, including, but not limited to, credit
711	711	2 generators, affected communities, and environmental justice
712	712	3 advocacy organizations.
713	713	4 Section 40. Exemptions. The following fuels are exempt
714	714	5 from the clean transportation standard established in Section
715	715	6 15:
716	716	7 (1) aviation fuels;
717	717	8 (2) transportation fuel used in locomotives;
718	718	9 (3) transportation fuel used in ocean-going vessels;
719	719	10 and
720	720	11 (4) fuel used in military tactical vehicles and
721	721	12 tactical support equipment owned by the U.S. Department of
722	722	13 Defense or the U.S. military services.
723	723	14 However, providers of these fuels, if deemed to be clean
724	724	15 fuels, shall be eligible under the rules adopted pursuant to
725	725	16 this Act to receive credits on an opt-in basis that may be
726	726	17 applied to future obligations or sold to deficit generators.
727	727	18 Section 45. Agency reporting obligation. Within 12 months
728	728	19 after the implementation of the clean transportation standard,
729	729	20 the Agency shall submit a report to the General Assembly
730	730	21 detailing the implementation of the clean transportation
731	731	22 standard, the reductions in greenhouse gas emissions that have
732	732	23 been achieved through the clean transportation standard, and
733	733	24 targets for future reductions in greenhouse gas emissions.
734	734
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736	736
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744	744	1 These reports shall include feedback solicited from
745	745	2 stakeholders under paragraph (7) of Section 20.
746	746	3 Section 50. Fuel supply forecasting. In consultation with
747	747	4 the Department of Transportation and the Department of
748	748	5 Agriculture, the Agency must develop a periodic fuel supply
749	749	6 forecast to project the availability of fuels to the State
750	750	7 necessary for compliance with clean transportation standard
751	751	8 requirements. The fuel supply forecast for each upcoming
752	752	9 compliance period must include, but is not limited to, the
753	753	10 following:
754	754	11 (1) an estimate of the potential volumes of gasoline,
755	755	12 gasoline substitutes, and gasoline alternatives, and
756	756	13 diesel, diesel substitutes, and diesel alternatives
757	757	14 available to the State. In developing this estimate, the
758	758	15 Agency must consider, but is not limited to, considering:
759	759	16 (A) the existing and future vehicle fleet in this
760	760	17 State; and
761	761	18 (B) any constraints that might be preventing
762	762	19 access to available and cost-effective clean fuels by
763	763	20 the State, such as geographic and logistical factors,
764	764	21 and alleviating factors to the constraints;
765	765	22 (2) an estimate of the total banked credits and
766	766	23 carried over deficits held by regulated entities, credit
767	767	24 generators, and credit aggregators at the beginning of the
768	768	25 compliance period, and an estimate of the total credits
769	769
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779	779	1 attributable to fuels described in paragraph (1);
780	780	2 (3) an estimate of the number of credits needed to
781	781	3 meet the applicable clean transportation standard
782	782	4 requirements during the forecasted compliance period; and
783	783	5 (4) a comparison in the estimates of paragraphs (1)
784	784	6 and (2) with the estimate in paragraph (3), for the
785	785	7 purpose of indicating the availability of fuels and banked
786	786	8 credits needed for compliance with the requirements of
787	787	9 this chapter.
788	788	10 The Agency may appoint a forecast review team of relevant
789	789	11 experts to participate in the fuel supply forecast or
790	790	12 examination of data required by this Section. The Agency must
791	791	13 finalize a fuel supply forecast for an upcoming compliance
792	792	14 period by no later than 90 days prior to the start of the
793	793	15 compliance period.
794	794	16 Section 55. Forecast deferral.
795	795	17 (a) No later than 30 calendar days before the commencement
796	796	18 of a compliance period, the Agency shall issue an order
797	797	19 declaring a forecast deferral if the fuel supply forecast
798	798	20 under Section 50 projects that the amount of credits that will
799	799	21 be available during the forecast compliance period will be
800	800	22 less than 100% of the credits projected to be necessary for
801	801	23 regulated parties to comply with the scheduled applicable
802	802	24 clean transportation standard adopted by the Agency for the
803	803	25 forecast compliance period.
804	804
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811	811
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814	814	1 (b) An order declaring a forecast deferral under this
815	815	2 Section must set forth:
816	816	3 (1) the duration of the forecast deferral;
817	817	4 (2) the types of fuel to which the forecast deferral
818	818	5 applies; and
819	819	6 (3) which of the following methods the Agency has
820	820	7 selected for deferring compliance with the scheduled
821	821	8 applicable clean transportation standard during the
822	822	9 forecast deferral:
823	823	10 (A) temporarily adjusting the scheduled applicable
824	824	11 clean transportation program standard to a standard
825	825	12 identified in the order that better reflects the
826	826	13 forecast availability of credits during the forecast
827	827	14 compliance period and requiring regulated entities to
828	828	15 comply with the temporary standard;
829	829	16 (B) requiring regulated entities to comply only
830	830	17 with the clean transportation standard applicable
831	831	18 during the compliance period prior to the forecast
832	832	19 compliance period; or
833	833	20 (C) suspending deficit accrual for part or all of
834	834	21 the forecast deferral period.
835	835	22 (c) In implementing a forecast deferral, the Agency may
836	836	23 take an action for deferring compliance with the clean
837	837	24 transportation standard other than, or in addition to,
838	838	25 selecting a method under paragraph (3) of subsection (b) only
839	839	26 if the Agency determines that none of the methods under
840	840
841	841
842	842
843	843
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850	850	1 paragraph (3) of subsection (b) will provide a sufficient
851	851	2 mechanism for containing the costs of compliance with the
852	852	3 clean transportation standard during the forecast deferral.
853	853	4 (d) If the Agency makes the determination specified in
854	854	5 subsection (c), the Agency shall:
855	855	6 (1) include in the order declaring a forecast deferral
856	856	7 the determination and the action to be taken; and
857	857	8 (2) provide written notification and justification of
858	858	9 the determination and the action to:
859	859	10 (A) the Governor;
860	860	11 (B) the President of the Senate;
861	861	12 (C) the Speaker of the House of Representatives;
862	862	13 (D) the Majority and Minority Leaders of the
863	863	14 Senate; and
864	864	15 (E) the Majority and Minority Leaders of the House
865	865	16 of Representatives.
866	866	17 (e) The duration of a forecast deferral may not be less
867	867	18 than one calendar quarter or longer than one compliance
868	868	19 period. Only the Agency may terminate, by order, a forecast
869	869	20 deferral before the expiration date of the forecast deferral.
870	870	21 Termination of a forecast deferral is effective on the first
871	871	22 day of the next calendar quarter after the date that the order
872	872	23 declaring the termination is adopted.
873	873	24 Section 60. Conflicts with other State programs. Nothing
874	874	25 in this Act precludes the Agency or Board from adopting or
875	875
876	876
877	877
878	878
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885	885	1 maintaining other programs as permitted or required by
886	886	2 existing or future legislation to reduce greenhouse gas
887	887	3 emissions from the transportation sector.
888	888
889	889
890	890
891	891
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