Laws Support State's Strong Agriculture Industry Currently Facing Drought

SPRINGFIELD - August 14, 2012.  Governor Pat Quinn today celebrated Illinois' agriculture heritage by signing five new laws to support the state's agriculture industry, which is currently facing record drought conditions. The governor signed the new laws on Agriculture Day at the Illinois State Fair in Springfield, where agriculture producers from throughout the state are gathered to showcase livestock and other products made and grown in Illinois.

"As Illinois faces the worst drought in recent history, it is important that we do everything possible to support our farmers and support our agriculture industry," Governor Quinn said.

House Bill 5540, sponsored by Rep. Donald Moffitt (R-Gilson) and Sen. Darin LaHood (R-Dunlap), formally names the Illinois Department of Agriculture's (Ag) administration building the John. R. Block building in honor of the Illinois native's distinguished service. It passed the General Assembly unanimously.

Block, a Galesburg-area native and West Point graduate, served as Illinois agriculture director from 1977 to 1981. He was appointed U.S. secretary of Agriculture in 1981 by President Ronald Reagan and played an instrumental role in the development of the 1985 Farm Bill, legislation credited with restoring economic stability to the American farming industry. Governor Quinn recently urged Congress to renew the Farm Bill, which would provide vital aid to farmers in drought-stricken areas.

The governor also signed House Bill 5539, sponsored by Rep. Lisa Dugan (D-Bradley) and Sen. Michael Frerichs (D-Champaign). The law creates the Illinois Nutrient Research and Education Council (NREC), a program dedicated to enhancing the use of fertilizers and protecting water quality from losing nutrients. The new law will support important fertilizer regulatory programs and is designed to revitalize nutrient research through Illinois' universities and apply this knowledge in the farm field.

Governor Quinn also signed House Bill 5115, sponsored by Rep. Kay Hatcher (R-Yorkville) and Sen. Pamela Althoff (R-Crystal Lake). The law is designed to protect cattle pastures from damage caused by wildlife. The new law amends the Wildlife Code to include cattle pastures specifically as a type of property that the Department of Natural Resources (DNR) may investigate. In addition, it allows DNR to determine whether the wildlife causing the damage needs to be removed, and clarifies that DNR will issue a permit to address the species responsible for causing the damage.

In order to prevent the pollution of Illinois waterways, Governor Quinn signed House Bill 5642, sponsored by Rep. Michael Tryon (R-Crystal Lake) and Sen. Michael Frerichs (D-Champaign). The legislation establishes fees on livestock producers that will help the Illinois Environmental Protection Agency administer the federally-mandated National Pollutant Discharge Elimination System program for Concentrated Animal Feeding Operations. The law is supported by the Illinois Farm Bureau, the Illinois Pork Producers Association, the Illinois Beef Association and the Illinois Dairyman's Association.

House Bill 4598, sponsored by Rep. Patrick Verschoore (D-Rock Island) and Sen. David Koehler (D-Pekin), was also signed today. The law is designed to increase traffic safety by requiring certain vehicles to display a slow-moving vehicle emblem before traveling on Illinois roadways. The new law requires all farm implements and tractors, non-highway vehicles, and special mobile equipment or animal-drawn vehicles to display the slow-moving vehicle emblem.

All of the laws signed today are effective immediately. Following the signings, Governor Quinn will preside over the annual Governor's Sale of Champions taking place at the State Fair, during which champion livestock raised by youths interested in the agriculture industry will be auctioned. Proceeds will benefit agriculture education programs as well as the young producers.

For more information about the Illinois State Fair, please visit StateFair.Illinois.gov. To learn more about the state's efforts to combat drought conditions, visit Drought.Illinois.gov.

MOLINE, ILLINOIS --  WQPT's local public affairs program "The Cities with Jim Mertens," which airs on the public television station on Thursday at 6:30 pm and Sunday at 5:30 pm is now airing on our area's local public radio station, WVIK.

"We've been talking with WQPT about partnering on projects and like us they are committed to producing and airing more local programming. This was a great opportunity to expand the reach of 'The Cities' to the WVIK audience and to be able to work with our public television partners," said WVIK General Manager, Jay Pearce.   "We have changed our schedule to include a variety of public affairs and special interest programs each evening at 7:00.  On Fridays we pair 'The Cities' with 'Illinois State Week in Review'," said Mr. Pearce.

"At the present time 'The Cities' can be seen on WQPT Thursdays and Sundays, on the WQPT website which links to YouTube, on iTunes and now on WVIK on Fridays at 7 pm. It's great to be able to have our local public affairs program have the kind of reach 'The Cities' is enjoying," said WQPT Director of Local Content, Lora Adams.

"The Cities with Jim Mertens" began production in November 2010 and airs weekly. The program is taped in Davenport, Iowa at Stratus Broadcasting and Lora Adams and Jim Mertens serve as the programs producers. The two local public broadcasters are currently looking at other opportunities for partnership.

WQPT is a media service of Western Illinois University in Moline, Illinois and WVIK is a media service of Augustana College in Rock Island, Illinois.

Thune, Grassley Question Obama Administration on Taxpayer Funding of Faltering Battery Manufacturer Following Planned Chinese Investment

WASHINGTON, D.C.–U.S. Senators John Thune (R-S.D.), Chairman of the Senate Republican Conference, and Chuck Grassley (R-Iowa), Ranking Member of the Senate Judiciary Committee, today sent a letter to the Obama administration's Department of Energy (DOE) questioning the use of taxpayer dollars to shore up another faltering stimulus-funded company, A123 Systems Inc. Last week, a Chinese-based company, Wanxiang Group Corp., announced a substantial investment in the U.S. battery manufacturer, which could result in Chinese ownership of the company that could still receive over $100 million in U.S. taxpayer funds.

Thune and Grassley sent a letter to the DOE on June 25^th requesting more information on Stimulus money transferred to A123 as it related to the taxpayer-backed loan guarantee to the troubled auto company Fisker. The Obama administration failed to address the senators' questions in a response letter.

The text of the senators' letter sent today is included below.

August 14, 2012

Dr. Stephen Chu

Secretary

Department of Energy

1000 Independence Avenue, SW

Washington, DC 20585

Dear Secretary Chu:

We write today in regards to the Department of Energy (DOE) grant to A123 Systems, Inc., and the recent announcement of Wanxiang Group Corp, a China-based company, to heavily invest in the U.S. battery manufacturer.

In 2009, A123 was awarded a $249.1 million grant through the American Reinvestment and Recovery Act of 2009 (Recovery Act).  In a letter dated June 25, 2012, we asked you how much of this grant has yet to be transferred to A123.  Although you failed to answer this straightforward question, media reports indicate that A123 has approximately $120 million of the $249.1 million grant currently outstanding.

Recently, A123 and the China-based Wanxiang announced a $450 million deal to save the struggling battery manufacturer.  According to media reports, Wanxiang will purchase $200 million of A123's secured debt and provide up to an additional $250 million in financing.  A key part of this transaction gives Wanxiang the option to transfer some of this debt into ownership of the company, which could result in Wanxiang owing 80 percent of A123.

Billions of U.S. taxpayer dollars have flowed to foreign companies through the Recovery Act, and we are concerned that the recent announcement could lead to even more taxpayer dollars going overseas.  Given that A123 could soon be owned by a Chinese company, please answer the following questions with regards to this transaction and A123's outstanding Recovery Act grant:

1.         How much of A123's $249.1 million Recovery Act grant is still outstanding?

2.         Considering that A123 has already received millions of U.S. taxpayer dollars and could potentially receive up to $450 million from a foreign company, does A123 need additional taxpayer dollars to continue its operations?

3.         If the A123-Wanxiang transaction is approved, how will that impact future distributions of A123's Recovery Act grant, if at all?

4.         If the A123-Wanxiang transaction is approved and Wanxiang exercises its option to convert A123's debt into equity, does DOE still plan to distribute the unused portion of A123's Recovery Act grant?  If so, why?

5.         What assurances does DOE have that Wanxiang will not simply wait until the additional grant money is awarded and then exercise its option to convert A123's debt into ownership of the U.S.-subsidized company?  Would DOE view that as an appropriate outcome?  If so, why?

6.         What assurances, if any, does DOE have that the A123-Wanxiang transaction and additional DOE funding through the Recovery Act will not lead to a transfer of taxpayer-funded intellectual property to a China-based company, or that the taxpayer funded manufacturing jobs will remain in the United States?

7.         With the recent announcement that Wanxiang will be investing in A123, will the DOE place additional milestones on A123's progress before awarding the additional Recovery Act grant dollars, and if so, what would those be?   What assurances does DOE have, if any, that A123 has solved its technical problems and that A123 will become profitable in the near future?

8.         In an August 3, 2012, letter to us, Acting Executive Director of DOE's Loan Program Office David Frantz wrote that, "(t)he Department is in constant dialogue with A123 to stay abreast of progress, challenges, plans and developments to assure that the project is meeting the objectives as defined in the grant.  DOE is also continually monitoring risk and financial conditions.  As part of this "continual monitoring" when did DOE become aware of A123's pending transaction with Wanxiang?

9.         Did DOE raise any objection to this transaction?  If so, when?  Please provide documents supporting any objection raised by DOE to this transaction.

Thank you for your cooperation and attention in this matter.  We would appreciate a response by August 21, 2012.

Sincerely,

John Thune

Charles Grassley

SPRINGFIELD - August 14, 2012. Governor Pat Quinn today took action on the following bills:

Bill No.: HB 1577

An Act Concerning: Insurance

Amends provisions of the Illinois Insurance Code pertaining to company action level events and surplus line insurers.

Action: Signed

Effective Date: Immediately

Bill No.: HB 3826

An Act Concerning: Service Dogs

Changes the name of the Guide Dog Access Act to the Service Animal Access Act, and expands and makes changes to the definition and use of a service animal in public facilities.

Action: Signed

Effective Date: Immediately

Bill No.: SB 3727

An Act Concerning: Health Regulation

Expands the authority of the Department of Public Health (DPH) in order to increase the quality and safety of swimming facilities.

Action: Signed

Effective Date: Jan. 1