SPRINGFIELD, IL - State Senator Michael Frerichs (D-Champaign) passed two renewable fuels bills out of the Senate. Senator Frerichs was the chief sponsor on Senate Bill 2570 which establishes new renewable fuels programs and exempts gasoline sold over $2.50 from state sales tax. Senate Bill 2861 creates grant programs for renewable fuels infrastructure and research. Gas prices have been at record highs recently. Diesel is over four dollars in some places and many experts predict that unleaded gasoline might be that high by the end of the summer.

"My bill tackles this problem in two ways," said Senator Frerichs. "In the short term, Senate Bill 2570 helps consumers by lowering gas prices. This should help both at the pump and in the store where fuel costs can translate into higher prices on goods. In the long term, this legislation will fund programs aimed at replacing fossil fuels with renewable fuels we can produce right here."

Senate Bill 2570 will create the Illinois Corn Grain to Fuel Research Consortium Assistance Program to support research efforts on corn kernel to fuel alcohol and value-added co-products, corn stover to fuel alcohol, and cellulosic fuel alcohol production. This legislation also provides grants to build, reconstruct, alter, or retrofit ethanol or biodiesel plants.

"Senate Bill 2861 will help make renewable fuels commercially viable," said Senator Frerichs. "Infrastructure to produce and transport the fuels will help us move past research phase and into the mass production phase."

Senate Bill 2861 consists of three new grant programs. The Renewable Fuels Majority Blended Ethanol Infrastructure Program will encourage the construction, installation, and marketing of majority blended ethanol. It will provide local governments with the assistance they need to install infrastructure necessary for majority blended ethanol use. The Renewable Fuels Competitive Commercialization Program will distribute funds aimed at increasing vehicle mileage, and reducing the water usage in manufacturing bio-fuel among other goals. The Renewable Fuels Rail Infrastructure Assistance Program provides funds to improve the infrastructure needed to ship renewable fuels.

"Investing in renewable fuels helps to solve many of the main problems facing our nation and state," said Senator Frerichs. "By decreasing our reliance on fossil fuels, we will simplify our relations with foreign nations and clean up our environment. Investment in renewable fuels here in Illinois will stimulate our economy and encourage innovation in our research institutions."

Senate Bills 2570 and 2861 both passed without opposition and now move to the Illinois House for consideration.