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HB 2745

Relating to benefit payments during employer compliance investigations; declaring an emergency.

2025 Regular Session Introduced by Wlnsvey Campos and 6 co-sponsors

Establishes a state program paying Illinois farmers at least $5/acre to cut commercial nitrogen fertilizer use and adopt nitrogen‑saving technologies.

In committee upon adjournment.
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Bill Summary · HB 2745

HB 2745 — Nitrogen Reduction Incentive Program Act (Introduced 2025)

Status summary
- Introduced: Feb 2025 (filed/first readings in February–March 2025). Current status: Rule 19(a) / Re‑referred to Rules Committee.
- Primary sponsors: Rep. Jay Hoffman and Rep. Stephanie Stahl Hamilton (with numerous cosponsors).
- Companion bills: SB 2984, HB 144.

Purpose / intent
- Establish a state‑administered incentive program to encourage Illinois farmers to reduce commercial nitrogen fertilizer use and to adopt innovative/biological nitrogen management technologies, with the objective of improving water quality by reducing nitrate leaching and runoff.

Key provisions
- Program creation and administration
- Creates the Nitrogen Reduction Incentive Program, to be developed and administered by the Illinois Department of Agriculture (IDOA) in consultation with the Department of Natural Resources and soil & water conservation districts.
- Development deadline: by January 1, 2026.
- IDOA must adopt rules to implement the Act and establish product/label standards for qualifying products.

  • Eligibility and qualifying practices

    • Program open to all Illinois farmers.
    • Qualifying items may include fertilizers/products with nitrogen‑fixing properties, biological sources of nitrogen, and other "biofertilizers" as determined by IDOA.
    • “Commercial nitrogen fertilizer” is defined as fertilizer with nitrogen content of at least 25%.
    • To qualify, a farmer must demonstrate a reduction in commercial nitrogen fertilizer use from a historic baseline equal to the lesser of (i) 15% or (ii) 30 pounds per acre (per the bill text).

  • Payments and timeline

    • Program provides an annual per‑acre incentive; the Department must set a per‑acre payment that is not less than $5/acre and periodically review rates for inflation or emerging technology.
    • Payments distributed to qualifying entities after meeting program requirements.
    • The program is established to renew annually for 4 years (subject to appropriation).

  • Oversight and review

    • Department required to review at least once during the program’s life whether to raise reduction targets and whether to add qualifying products/applications.

  • Funding and findings

    • Implementation is subject to appropriation. Legislative findings state an initial program cost of $5,000,000 in year one and renewal funding for at least four years (these are legislative findings, not binding appropriations).

  • Confidentiality

    • Crop management records collected (including field boundaries, crop yields, and nitrogen rates) are designated confidential and to be used solely for implementing the Act.

Who would be affected
- Directly: Illinois farmers who apply commercial nitrogen fertilizer (≥25% N) and who wish to participate to receive per‑acre incentives.
- Indirectly: Illinois Department of Agriculture (program design/administration), Department of Natural Resources, soil & water conservation districts, fertilizer manufacturers/distributors whose products may be certified as qualifying, and water quality stakeholders.

Potential impacts / considerations
- Environmental: Intended to reduce nitrogen application and thereby decrease nitrate runoff/leaching to improve water quality.
- Financial: Incentives start at a minimum of $5/acre; actual program funding requires legislative appropriation (bill references a $5M first‑year target in findings).
- Administrative: IDOA must create product standards, verify reductions relative to historic baselines, and maintain confidentiality of farmer data.
- The bill’s required reduction metric (the “lesser of 15% or 30 lbs/acre”) and the limited minimum payment may influence farmer participation and the cost‑effectiveness of measured nitrate reductions.

Effective date
- The Act takes effect upon becoming law; program is subject to appropriation and rulemaking by the Department of Agriculture.

Compiled from official sources — confirm details with the bill’s official record.

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