Clark Kaericher l Vice President, Government Affairs l 217-522-5512 x 296


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March 18, 2022
The Infrastructure Council is an initiative of the
Illinois Chamber that brings together Chamber members with a focus on increasing
infrastructure investments in a strategic and thoughtful way to boost the overall business climate in Illinois. Our focus is on the public and private systems that are essential to Illinois businesses. 


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Happy March Madness Friday. Hopefully your brackets aren’t already blown (looking at you, Iowa).  
 
Friday, March 25th is the deadline to get bills originating in the opposite chamber out of committee in both the House and the Senate. Accordingly, expect a heavy week of committees next week.  Also note that the Senate will be holding in-person committee hearings this week for the first time since March of 2020.  
 
Committee Updates 

House Transportation: Regulation meets at 3 pm on Tuesday. An interesting measure is HR 666 which asks Congress to make parts of the Dan Ryan a tollway. This is opposed by our friends in the trucking industry.  
 
Senate Transportation Committee will meet on Tuesday at 3:30. The bills of interest are HB 260 (Digital license study) and HB 3124 (ICC towing database).  

House State Government Committee will take up SB 2981 (Villivalam) which gives IDOT design-build authority. The Chamber supports this measure.  
House Transportation: Vehicles will meet on Thursday at 10 am. The most interesting bill posted for this committee is SB 1233 which creates an infrastructure funding blue ribbon panel.  
 
This Week’s Committee Votes of Note 

SB 1234, EPA Inspection Station passed out of the House Transportation: Vehicles & Safety Committee by a vote of 12-0-0. This bill provides that, by October 1, 2022, the Illinois Environmental Protection Agency shall submit a report to the General Assembly containing its plan to replace the dismantled official inspection stations located in the City of Chicago. Provides that the plan shall consist of either a pilot program or a permanent replacement program and shall provide information on the proposed locations of the new stations within the City of Chicago, information on programs implemented in other states, and a target date for full operation of all stations. Provides that the Agency shall issue a request for proposals related to its plan by January 1, 2023. Provides that the described plan shall also contain a timeline of actions, shall include procurement of services, technology, equipment, and other elements necessary to replace the former vehicle testing lanes, and shall state whether the replacement stations in the City of Chicago will utilize permanent self-service kiosks or other services. Provides that the plan shall also include the Agency's strategy of how best to inform people of the location and hours of operation of the new official inspection stations and conduct an informational campaign.  

SB 3082, High Speed Rail Commission passed out of the House Transportation: Regulations,. Roads & Bridges Committee 7-3-0. This bill amends the High-Speed Railway Commission Act so that the following positions are now appointed by the Governor: a representative of a labor organization representing rail workers; a representative of a trade organization related to the rail industry; a representative of the Metropolitan Mayors and Managers Association; a representative from the Illinois Railroad Association; a representative from the University of Illinois System; a representative from the Chicago Metropolitan Agency for Planning; a representative of the Illinois Municipal League; a representative of the Champaign-Urbana Mass Transit District; a representative of the Region 1 Planning Council; a representative of the McLean County Regional Planning Commission; and a representative of the East-West Gateway Council of Governments. Also, appointments must be made by January 1, 2023 rather than January 1, 2022.  

SB 3633, Demolition passed out of the House Energy & Environment Committee by a vote of 25-0-0. This bill provides that counties and municipalities must maintain documentation submitted from a contractor (rather than just maintain documentation) on the disposal of specified demolition debris, clean or general, or uncontaminated soil during the demolition, repair, or enclosure of a building for a period of 3 years identifying the hauler, generator, place of origin of the debris or soil, the weight or volume of the debris or soil, and the location, owner, and operator of the facility where the debris or soil was transferred, disposed, recycled, or treated.  

SB 3848, RTA passed out of the House Transportation: Regulation, Roads & Bridges Committee by a vote of 10-0-0. This bill states that by January 1, 2024, the Chicago Metropolitan Agency for Planning and its MPO Policy Committee, in coordination with the Authority, shall develop and submit a report of legislative recommendations to the Governor and General Assembly regarding changes to the recovery ratio, sales tax formula and distributions, governance structures, regional fare systems, and any other changes to State statute, Authority, or Service Board enabling legislation, policy, rules, or funding that will ensure the long-term financial viability of a comprehensive and coordinated regional public transportation system. The report shall also consider recommendations on how the Authority and Service Boards can better address racial equity, climate change, and economic development.  

EV Steering Committee  

Next Wednesday I’m looking forward to participating in the first EV Steering Committee meeting of the IDOT-funded research project: EV Infrastructure Plan for Illinois. The work will be facilitated by Chamber member, the University of Illinois.  
 
Gasoline is too Expensive. What to do about it? SGOP Proposes SB 4195  

SB 4195 (Syverson) Cap on Sales Tax on Motor Fuel Sales Summary:  
 
Illinois is one of 7 states in the country that charges sales tax on motor fuel sales. The sales tax Illinois charges is in addition to the federal Motor Fuel Tax ($0.184/gallon), the federal Leaking Underground Storage Tank fee ($0.01/gallon), the state Motor Fuel Tax ($0.392/gallon), locally imposed Motor Fuel Tax (varies by county/municipality), and any locally imposed sales tax (rates vary depending on county/municipality).  

The way that Illinois calculates sales tax is complicated, but to simplify, retailers calculate a cents per-gallon amount based on the current price of gas and the state’s 6.25% sales tax rate. That cents-per-gallon amount is then added to the price of fuel motorist pay at the pump.  
 
SB 4195 works as follows:  
 
  • Under this proposal, the sales tax rate would be capped at $0.18/gallon. This number is the prepaid rate distributors pay to the Department of Revenue. It is calculated by the Department of Revenue every January 1 and July 1 by multiplying the average of the previous six months selling price per gallon by 6.25%.  
  • We believe that the current $0.18 rate is based on fuel prices that pre-date the ongoing international conflicts that are drastically affecting fuel prices. For context, consumers are currently paying about $0.25/gallon at the pump based on an average price of $4.50/gallon and our projections show that the per gallon rate could increase to $0.34/gallon if fuel prices continue to climb to over $5.50/gallon.  
  • SGOP projections show that even if sales tax is capped at rates paid prior to the unforeseen unrest in Ukraine, Road Fund revenues would increase over current FY revenues; additionally, while GOMB adjusts its projections based on current fuel prices, these unforeseen spikes would not have been accounted for in the Governor’s FY23 budget proposal.  
  • This idea is projected to save taxpayers $400 million to $935 million over the next fiscal year  
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Not a member and want to learn more about the Illinois Chamber - click here to contact Lauryn Thornton. Click here to contact Jack Bernhardt.