SPRINGFIELD, IL -State Senator Michael Frerichs (D-Champaign) passed two bills out of the Senate Agriculture and Conservation Committee regarding renewable fuels. Senate Bill 2570 creates and funds new renewable fuels programs and bill also eliminates the state sales tax for gasoline sold over $2.50. Senator Frerichs co-sponsored Senate Bill 2861 which creates grants for renewable fuels infrastructure and research.

"We need to develop viable renewable fuels that we can produce right here in Illinois that are environmental friendly," said Senator Frerichs. "Renewable fuels will help ease many of the problems we face; it will decrease our reliance on foreign oil, help our environment, stimulate our economy, and encourage innovation."

Senate Bill 2570 creates the Illinois Corn Grain to Fuel Research Consortium Assistance Program, which will support research efforts on corn kernel to fuel alcohol and value-added co-products, corn stover to fuel alcohol, and cellulosic fuel alcohol production. Grants created by this bill will also be used to construct, modify, alter, or retrofit ethanol or biodiesel plants. Senate Bill 2570 will also lower the price of gasoline by eliminating the sales tax on gas sold over $2.50.

"We have gas prices well over three dollars now," said Senator Frerichs. "This bill addresses the problem of gas prices in two ways; it lowers gas prices to provide some relief to consumers and provides funding for programs to renewable fuels which should lower the cost of gas."

Senate Bill 2861 creates 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 also provide financial assistance to install the necessary infrastructure for the use of majority blended ethanol. The Renewable Fuels Competitive Commercialization Program will coordinate renewable fuel research and distribute grant funds. The Renewable Fuels Rail Infrastructure Assistance Program will provide $5 million to fund efforts to improve the infrastructure necessary to transport renewable fuels.

"While we still need to do research on renewable fuels, the next step is providing the infrastructure necessary to make renewable fuels commercially viable," said Senator Frerichs. "These are two good bills and hopefully we can move them into the House."

Both of these bills now await action by the full body of the Senate.