SB2394 Summary

• Creates the Illinois Renewable Fuel Standards Act requiring all diesel fuel sold in Illinois to contain minimum biodiesel percentages: 5% from July 1, 2021 through June 30, 2024, and 20% from July 1, 2024 forward (contingent on Director implementing rules verifying supply, technical standards, and infrastructure readiness at least 270 days prior).

• Exempts specific equipment from biodiesel requirements including nuclear power plant motors, railroad locomotives, U.S. Coast Guard vessels, and certain generators; also exempts Number 1 diesel fuel.

• Amends Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act to modify biodiesel tax treatment: tax exemptions for 100% biodiesel and blends with more than 10% biodiesel sunset December 31, 2021, with new partial exemption for blends with more than 20% biodiesel running January 1, 2022 through June 30, 2024.

• Requires refineries and terminals to disclose biodiesel content on bills of lading and delivery tickets stating volume percentage or ASTM designation.

• Directs Department of Agriculture to adopt rules for fuel standards compliance and requires annual reporting to legislature beginning 2026 on implementation, pricing, supply, and biodiesel production capacity impacts.