Amends the State Revenue Sharing Act. Requires the Department of Revenue to establish a payment, in excess to the Department's determined amount for the fiscal year, that is equal to 1% of a municipality's or county's allotment from the Local Government Distributive Fund to be awarded to any municipality or county that can document its use of diesel fuel containing in excess of the percentage of biodiesel necessary to qualify for exemption from the tax under specified provisions of the Use Tax Act for that year. Amends the Illinois Vehicle Code. Repeals a provision of the Code concerning the required use of biodiesel.