SPRINGFIELD, Ill. -- Governor Rod R. Blagojevich unveiled a comprehensive long-term energy plan yesterday to replace Illinois' dependence on foreign oil with homegrown alternatives. The plan will help free consumers from the grip of foreign oil and gas interests by giving drivers and homeowners alternatives to the high cost of gasoline, stabilize energy prices, give Illinois farmers new markets for their crops, and create 30,000 new jobs, he said.
The plan sets a goal of replacing 50% of the state's energy supply with homegrown fuels by 2017. Illinois [image-nocss] would be the first state to reach this level of energy independence, said Blagojevich.
Among other goals, the plan will:
Invest in renewable biofuels by providing financial incentives to build up to 20 new ethanol plants and five new biodiesel plants. These increases in ethanol and biofuels production would allow Illinois to replace 50% of its current supply of imported oil with renewable homegrown biofuels. Increase the number of gas stations that sell biofuels, so that all stations offer 85% ethanol fuel (E85) by 2017. Help the auto industry to produce more and better flexible-fuels vehicles (FFVs) that can run on either E85 or regular gasoline. Meet 10% of the state's electricity needs from renewable energy sources by 2015, greatly boost investment in energy efficiency, while finding ways to cut emissions and reduce motor fuel consumption by 10% in 2017.The goal of the plan is to replace 50% of the state's current supply of imported oil with renewable homegrown biofuels like ethanol and biodiesel. Since February, the average price of gasoline increased from $2.17 a gallon to more than $3. At $3 a gallon, the average person spends about $500 more on gasoline than last year, Blagojevich said. He proposes to invest $100 million over the next 5 years to build up to 20 new ethanol plants across Illinois. The additional ethanol production would generate an estimated $1.7 billion in business investment. The governor proposes investing an additional $100 million over the next 10 years to build four plants in downstate Illinois using new technology to create ethanol made from plant waste materials like corn husks and wood pulpo cellulosic ethanol. This means boosting the state's annual ethanol production by more than 200% and meeting 50% of gasoline needs by 2017. And the plan would invest $25 million to help build five new biodiesel plants, boosting the state's production by 200% to 400 million gallons per year or the equivalent to 25% of the state's annual diesel fuel needs by 2017. This additional biodiesel production will generate another $225 million in business investment in Illinois.
As Illinois produces more biofuels, the second major goal of the plan is to make sure every gas station in Illinois offers 85% ethanol fuel (E85) by 2017. To reach this goal, the governor proposes investing $30 million over the next five years to add 900 more E85 pumps statewide by 2010, meaning 20% of Illinois stations will offer E85. Illinois will also work with automakers to offer more FFVs to Illinois drivers, by providing up to $25 million incentives to produce more vehicles that can run on E85. The state will also increase public awareness about E85 and promote use by local governments and private fleets. Increasing biofuels production and consumption means cars will use cleaner burning, homegrown fuel and give drivers real alternatives to the high cost of gasoline.
The plan also focuses on using more sources of renewable energy and strategies to improve energy efficiency and reduce energy consumption. To make Illinois energy more efficient, the plan sets a goal of reducing motor fuel consumption in Illinois by 10% by 2017, allowing residents to save billions annually in fuel costs. The governor also proposes to work with the automobile industry, environmental groups and consumer advocates to form the Illinois Fuel Conservation Task Force to explore strategies to reach the 10% goal by 2017.
The cost of the plan is estimated at $27 million annually in general revenue to support $1.2 billion of total capital investment. To pay for the plan, the governor will increase enforcement efforts to collect taxes from corporations that currently evade taxation, he said. The Illinois Department of Revenue estimates that businesses owe $35 million to $40 million in sales and corporate income taxes to the state. Some businesses collect sales taxes from customers but don't remit the revenue to the state. Others, mainly out-of-state corporations, illegally shelter income that goes uncollected. The Revenue Department will hire 150 more tax auditors to collect these delinquent taxes, producing more than $30 million in fiscal 2007, and as much as $40 million in fiscal 2008. These new revenues will help ensure tax fairness and be collected without raising income or sales taxes or changing Illinois' tax code.
Meanwhile, Republican candidate for state representative Steve Haring, said he wants the special session in Springfield, according to WQAD-TV. He is calling on Blagojevich to suspend the state gasoline tax.
His website, www.haringforrep.com, offers an online petition:
Dear Governor Blagojevich,
We are requesting that you call a special session to suspend state gas sales tax as soon as possible at least through the end of harvest season. This Gas Sales Tax Holiday would save Illinois' motorists a great deal of money as it would temporarily suspend the state's portion of the 6.25% per gallon gas tax.
The State of Illinois needs to offer relief to the families, farmers and businesses of our state. Illinois consumers could see nearly $100 million in tax relief with this sales tax holiday plan. Iowa and Missouri do not charge a sales tax on their petroleum products, which makes gasoline in those states significantly more affordable for working families. Many of our farmers cannot keep up with the lower cost of gasoline across the river and are put in a competitive disadvantage.
In addition, the extreme heat that this region has been put through this summer has created additional cooling costs for families that are living paycheck to paycheck. This added expense would, for some, force families to make tough decisions next month on how to pay their bills. The $50 in potential savings for working families during a gasoline sales tax holiday transfers into food for their children.
We, the undersigned, urge you to call for a special session and a Gas Sales Tax Holiday.
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