IL SB0296

Establishes the Illinois Diesel Emissions Reduction Act to reduce diesel particulate emissions through a new funding program managed by the Illinois Environmental Protection Agency (IEPA).

Creates the Diesel Emissions Reduction Fund funded by surcharges: 1% on retail sales/leases of diesel nonroad vehicles, 2.5% on sales/leases of model year 2006 or earlier heavy-duty diesel vehicles without Level 3 Controls, and 10% on registration of heavy-duty diesel vehicles.

Authorizes IEPA to establish Grant Programs (providing competitive grants and low-cost revolving loans) and Rebate Programs to fund eligible emission reduction measures including retrofits, engine replacements, and anti-idling technology, with priority given to public agency fleets.

Requires cost-effectiveness standard of no more than $135,000 per ton of particulate matter reduction and specifies that funded measures must achieve at least 50% reduction in particulate emissions.

Mandates the Secretary of State to require additional diesel vehicle registration information by March 1, 2010, and develop a registration program for diesel nonroad vehicles, locomotives, and marine vessels by October 1, 2010; effective immediately upon enactment.