Illinois Incentives and Laws

Listed below are the summaries of all current Illinois incentives, laws, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (14)
• Utility/Private Incentives (1)
• Laws and Regulations (21)

State Incentives

Idle Reduction Weight Exemption

A vehicle equipped with idle reduction technology may exceed the state's gross, axle, or bridge vehicle weight limits by up to 400 pounds to compensate for the additional weight of the idle reduction technology. The additional weight may not exceed the actual weight of the idle reduction unit. The vehicle operator must carry written certification showing the weight of the technology and must be able to demonstrate or certify that it is fully functional. (Reference Senate Bill 1644, 2011, and 625 Illinois Compiled Statutes 5/15-112)

Smart Grid Infrastructure Development and Support

The Illinois Science and Energy Innovation Trust will provide financial and technical support and assistance to public or private entities within the state for programs and projects that support, encourage, or utilize innovative technologies and methods to modernize the state's electric grid. Technologies may include advanced electricity storage and peak-shaving technologies such as plug-in electric vehicles (PEVs), devices that allow PEVs to engage in smart grid functions, or standards development for communication and interoperability of appliances and equipment connected to the electric grid. Electric utilities may voluntarily commit to investments in smart grid advanced metering infrastructure deployment. Participating utilities must consult with the Smart Grid Advisory Council and file a Smart Grid Advanced Metering Infrastructure Deployment Plan with the Illinois Commerce Commission. (Reference Senate Bill 1652, 2011; House Bill 3036, 2011; and 220 Illinois Compiled Statutes 5/16-108.5-108.7)

Plug-in Electric Vehicle and Infrastructure Grants

Car sharing organizations located and operating in Illinois may be eligible for grants of up to 25% of qualifying project costs, including the cost of purchasing new electric vehicles and building charging infrastructure. Vehicles must be predominately powered by electricity, be purchased from an Illinois dealership, and remain registered and in service with the grantee in Illinois for at least five years after purchase. Vehicles purchased with grant funds are not eligible for rebates under the Illinois Alternate Fuels Rebate Program. Grant application and reporting requirements apply. The Illinois Environmental Protection Agency will administer the grant program through Fiscal Year 2013. (Reference House Bill 2903, 2011, and 415 Illinois Compiled Statutes 120/30)

Alternative Fuel Vehicle (AFV) and Alternative Fuel Rebates

The Illinois Alternate Fuels Rebate Program (Program) provides a rebate for 80% of the incremental cost of purchasing an AFV (up to $4,000), 80% of the cost of converting a conventional vehicle or a hybrid electric vehicle to an AFV using a federally certified conversion (up to $4,000), and for the incremental cost of purchasing alternative fuels. Eligible fuels for the program include E85, fuel blends containing at least 20% biodiesel (B20), natural gas, propane, electricity, and hydrogen. A vehicle may receive one rebate in its lifetime. Only AFVs or conversion systems purchased from an Illinois-based company or vendor are eligible, except if the vehicle is a heavy-duty specialty vehicle that is not sold in Illinois, and only hybrid electric vehicles fueled with alternative fuels are eligible. To be eligible for a fuel rebate, the entity or individual must purchase the majority of E85 or biodiesel fuel from Illinois retail stations or fuel suppliers. The E85 fuel rebate is up to $450 per year (depending on vehicle miles traveled) for up to three years for each flexible fuel vehicle that uses E85 at least half the time. The biodiesel fuel rebate (for B20 and higher blends) is for 80% of the incremental cost of the biodiesel fuel, as compared to conventional diesel. The Program is part of the Illinois Green Fleets Program and is open to all Illinois residents, businesses, government units (except federal government), and organizations located in Illinois. (Reference House Bill 6047, 2010, and 415 Illinois Compiled Statutes 120/30)

E85 Fueling Infrastructure Grants

The Illinois Department of Commerce and Economic Opportunity's Renewable Fuels Development Program partners with the Illinois Corn Marketing Board to fund new E85 fueling infrastructure at retail gasoline stations. The American Lung Association of Illinois-Iowa administers the grants for up to $5,000 of the total costs for converting an existing facility to dispense E85, or up to 30% of the cost to construct a new E85 fueling station or to modify a current station, with a maximum grant of $30,000 per facility.

Biofuels Production Facility Grants

The Renewable Fuels Development Program provides grants for the construction or expansion of biodiesel and ethanol production facilities. Each new facility must have a production capacity of at least five million gallons per year and an existing facility must expand its production capacity by at least five million gallons per year to be eligible for funding. The total amount of the grant awarded may be up to 10% of the total construction costs of the facility or $4 million, whichever is less. (Reference 20 Illinois Compiled Statutes 689/1 through 689/99)

Clean Diesel Retrofit and Idle Reduction Grants

The Illinois Clean Diesel Grant Program (Program) provides funding to local governments, school districts, school bus companies, colleges, universities, mass transit districts, businesses, truck owners/operators, and non-profit organizations for the installation of diesel oxidation catalysts, closed crankcase ventilation systems, particulate matter filters, and anti-idling equipment, including direct-fired heaters and auxiliary power units. In addition, funding may be available for diesel-electric hybrid vehicles. The Program is part of the Illinois Green Fleets Program, which targets school buses, shuttle buses, diesel vehicles operating in residential areas, and over-the-road trucks located and spending significant driving time in Illinois.

Alternative Fuel Vehicle (AFV) Fleet Incentives

The Illinois Green Fleets Program recognizes and provides additional marketing opportunities for fleets in Illinois that have a significant number of AFVs and use clean, domestically produced fuels.

Electric Vehicle (EV) Registration Fee Reduction

Individuals may register an EV at a discounted registration fee of no more than $18 per year. To qualify for the reduced fee, the EV must be designed to carry 10 or fewer passengers or be designed to carry more than 10 passengers but must weigh 8,000 pounds or less. (Reference 625 Illinois Compiled Statutes 5/3-805)

School Bus Retrofit Reimbursement

The Illinois Department of Education will reimburse any qualifying school district for the cost of converting gasoline buses to more fuel-efficient engines or to engines using alternative fuels. Restrictions may apply. (Reference 105 Illinois Compiled Statutes 5/29-5)

High Occupancy Toll Lane Access

Phase Two of the Illinois Tollway Congestion-Relief Program includes a Dedicated Green Lanes Plan that will provide access to qualified hybrid electric vehicles.

Ethanol Tax Exemption

Sales and use taxes apply to only 80% of the proceeds from the sale of fuels containing 10% ethanol (E10) made between July 1, 2003, and December 31, 2018. If these taxes are ever imposed at a rate of 1.25%, the tax on E10 will then apply to 100% of the proceeds of sales. State sales and use taxes do not apply to fuels containing between 70% and 90% ethanol (E70-E90) sold between July 1, 2003, and December 31, 2018. These taxes will apply to 100% of the proceeds from ethanol fuel blend sales made after December 31, 2018. (Reference Senate Bill 397, 2011, and 35 Illinois Compiled Statutes 120/2-10, 105/3-10, and 105/3-44)

Biodiesel Tax Exemption

Sales and use taxes apply to 80% of the proceeds from the sale of biodiesel fuel blends containing between 1% and 10% biodiesel made between July 1, 2003, and December 31, 2018. If these taxes are ever imposed at a rate of 1.25%, the tax on these biodiesel blends will apply to 100% of the proceeds of sales. These taxes do not apply to the proceeds from the sale of biodiesel blends containing more than 10% biodiesel. The taxes will apply to 100% of the proceeds from biodiesel sales made after December 31, 2018. (Reference Senate Bill 397, 2011, and 35 Illinois Compiled Statutes 120/2-10 and 105/3-10)

Fleet User Fee Exemption

Fleets with 10 or more vehicles located in defined areas must pay an annual user fee of $20 per vehicle. Owners of state, county, or local government vehicles or electric vehicles are exempt from this fee. Fees are collected into the Alternate Fuels Fund. (Reference 415 Illinois Compiled Statutes 120/35)

Utility/Private Incentives

Natural Gas Infrastructure Technical Assistance

Atmos Energy offers preliminary feasibility studies for compressed natural gas fueling stations and may assist with vendor selection on a case-by-case basis.

Laws and Regulations

Electric Vehicle Supply Equipment (EVSE) Installation Requirements

The Illinois Commerce Commission must establish certification requirements for vendors that install EVSE by April 29, 2012. (Reference Senate Bill 1652, 2011, and 220 Illinois Compiled Statutes 5/16-128A)

Plug-in Electric Vehicle Promotion and Coordination

The Illinois Electric Vehicle Advisory Council is established to investigate and recommend strategies that the governor and the general assembly may implement to promote the use of plug-in electric vehicles, including potential infrastructure improvements. The governor may appoint an Electric Vehicle Coordinator to act as the point of contact for related policies and activities in the state. (Reference House Bill 2902, 2011)

Fuel-Efficient Vehicle Acquisition Goals

To help achieve the statewide goal of reducing petroleum use by 20% by July 1, 2012, as compared to 2008 petroleum use, Illinois state agencies must work towards meeting the following goals:

• By July 1, 2015, at least 20% of new passenger vehicles purchased must be hybrid electric vehicles (HEVs) and 5% must be battery electric vehicles (EVs);
• By July 1, 2025, at least 60% of new passenger vehicles purchased must be HEVs and 15% must be EVs;

Agencies that operate medium- and heavy-duty vehicles must implement strategies to reduce fuel consumption through diesel emission control devices, HEV and EVs technologies, alternative fuel use, and fuel-efficient technologies. Agencies must also implement strategies to promote the use of biofuels in state vehicles; reduce the environmental impacts of employee travel; and encourage employees to adopt alternative travel methods, such as carpooling.

(Reference Executive Order 11, 2009)

Alternative Fuel Promotion

The Illinois General Assembly established the Alternate Fuels Commission (Commission) within the Illinois Department of Commerce and Economic Opportunity to identify and recommend strategies to the governor and General Assembly for implementing and promoting the use of alternative fuels and alternative fuel vehicles. The Commission will identify ways to improve stakeholder communication and coordination regarding the research and promotion of alternative fuels. The Commission must issue written reports on their activities and findings on at least an annual basis. (Reference 415 Illinois Compiled Statutes 120/23)

Biofuels Production Promotion

The state legislature supports the federal '25x25' initiative, under which 25% of the total energy the United States consumes in 2025 would be produced from domestic agriculture. (Reference Senate Joint Resolution 42, 2009)

Creation of Green Career Grants Program

The Illinois State Board of Education will establish a grant program to develop two-year pilot programs to assist in the creation and promotion of green career and technical education programs in public secondary schools. Green industries include the production and distribution of biofuels and vehicle retrofits to operate using biofuels. (Reference Illinois Compiled Statutes 5/2-3.151)

Biodiesel Production Tax

A private biodiesel producer that produces less than 5,000 gallons of biodiesel annually is subject to the annual state motor fuel tax. The return and payment of taxes for a given year are due by January 20 of the following year. A private biodiesel producer that produces more than 5,000 gallons of biodiesel annually must file returns and make state motor fuel tax payments on a monthly basis. The return and payment of taxes are due by the 20th day of each calendar month for the preceding calendar month. A private biodiesel fuel producer is defined as a person whose only activities with respect to motor fuel are: 1) the conversion of any biomass materials into biodiesel fuel that is produced exclusively for personal use and not for sale; or 2) the blending of biodiesel fuel resulting in biodiesel blends that are produced exclusively for personal use and not for sale. (Reference 35 Illinois Compiled Statutes 505/2, 505/2a, and 505/2d)

Biodiesel Definition and Specification

Biodiesel is defined as a fuel that is comprised of mono-alkyl esters of long-chain fatty acids derived from vegetable oils or animal fats and that conforms to ASTM standard D6751. All fuel consisting of at least 99% biodiesel (B99) that is sold or offered for sale should conform to ASTM standard D6751. (Reference 815 Illinois Compiled Statutes 370/4)

Biodiesel Blend Use Requirement

The following entities are required to use a biodiesel blend that contains at least 5% biodiesel (B5) when fueling at a bulk central fueling facility: any diesel powered vehicle owned or operated by the state, county or local government, school district, community college, public college or university, or mass transit agency. These entities are required to use B5 where available, unless the vehicle engine is designed or retrofitted to operate on a higher percentage of biodiesel or on ultra low sulfur diesel fuel. Biodiesel is defined as a renewable fuel conforming to ASTM standard D6751 and registered with the U.S. Environmental Protection Agency. (Reference 625 Illinois Compiled Statutes 5/12-705.1, 415 Illinois Compiled Statutes 120/10, and 815 Illinois Compiled Statutes 370/4)

Alternative Fuels Labeling Requirement

Retailers must display ratings on fueling pumps that are consistent with the percentage by volume of the alternative fuel being dispensed. (Reference 815 Illinois Compiled Statutes 370/4.1)

Ethanol and Hydrogen Production Facility Permits

The Illinois Environmental Protection Agency's Bureau of Air may issue air pollution control permits for thermochemical conversion technology facilities that are constructed and operated to demonstrate the process of applying heat to woody biomass to produce ethanol or hydrogen for use as transportation fuel. (Reference 415 Illinois Compiled Statutes 5/39.9)

Flexible Fuel Vehicle (FFV) Promotion and Vehicle Registry

The Office of the Illinois Secretary of State must create a database of registered FFVs. The information in this database should include the zip code, vehicle make and model, and vehicle identification number of each FFV, and have the ability to sort by the number of vehicles per zip code. The database must be made available to the public in both print and electronic formats. Additionally, through June 30, 2014, the Office of the Secretary of State must notify owners of vehicles designed to carry 10 or fewer passengers via mail that many motor vehicles are capable of using E85. (Reference 415 Illinois Compiled Statutes 120/22 and 120/24)

Biofuels Education and Promotion

The Promote Illinois Ethanol and Biodiesel Act requires state agencies, including state-supported universities and colleges, to provide links from their websites to sites containing information on ethanol and biodiesel fuels. The links must connect to Web sites maintained and operated by state agencies and may also include links to private websites. (Reference 505 Illinois Compiled Statutes 150/1)

State Government Energy Initiative

The Green Governments Illinois Act (Act) demonstrates the state's commitment to reduce negative environmental impacts, reduce greenhouse gases, and preserve resources for current and future generations. The Act also aims to strengthen the capacity of local governments and educational institutions to enable a more environmentally sustainable future. The Act established the Green Governments Coordinating Council (Council) to fully integrate cost-effective environmental sustainability measures into the ongoing management systems, long-range planning, and daily operations of state agencies. Initially, the Council will focus on initiatives that include those related to energy efficiency, renewable energy, and alternative fuel vehicles. Local governments and educational institutes are not required to participate in the provisions of the Act. (Reference 20 Illinois Compiled Statutes 3954/1 to 3954/45)

Advanced Vehicle Acquisition and Biodiesel Fuel Use Requirement

All gasoline-powered vehicles purchased with state funds must be flexible fuel vehicles (FFVs) or fuel-efficient hybrid electric vehicles (HEVs). Fuel-efficient HEVs are defined as automobiles or light trucks that use a gasoline or diesel engine and an electric motor to provide power and that gain at least a 20% increase in combined U.S. Environmental Protection Agency city-highway fuel economy over the equivalent or most-similar conventionally-powered model. Furthermore, any vehicle purchased with state funds that is fueled with diesel fuel must be certified by the manufacturer to run on 5% biodiesel (B5) fuel. The Chief Procurement Officer may determine that certain vehicle procurements are exempt from these requirements based on intended use or other reasonable considerations such as health and safety of Illinois citizens. (Reference 30 Illinois Compiled Statutes 500/25-75)

Biofuels Preference for State Vehicle Procurement

In awarding contracts that require vehicle procurement, state agencies may give preference to an otherwise qualified bidder who will fulfill the contract through the use of vehicles powered by ethanol produced from Illinois corn or biodiesel produced from Illinois soybeans. (Reference 30 Illinois Compiled Statutes 500/45-60)

State Vehicle Fuel Economy Requirements

State contracts for the purchase or lease of new passenger automobiles must require the procurement of vehicle models that, according to the most current ratings published by the U.S. Environmental Protection Agency, can achieve at least the minimum average fuel economy in miles per gallon as specified in the federal Corporate Average Fuel Economy requirements. This requirement does not apply to station wagons, vans, four-wheel drive vehicles, and emergency vehicles. Additionally, the Chief Procurement Officer may make exemptions when there is a demonstrated need for a vehicle that does not meet the minimum average fuel economy standards. (Reference 30 Illinois Compiled Statutes 500/45-40)

Corn-to-Ethanol Research Pilot Plant

The Illinois Ethanol Research Advisory Board manages and operates the National Corn-to-Ethanol Research Center (NCERC) Pilot Plant. The NCERC Pilot Plant aims to reduce the cost of producing ethanol through the development and commercialization of new production technologies, equipment, processes, feedstocks, and new value added co- and by-products. The Illinois Ethanol Research Advisory Board has six main responsibilities:

• Review the annual operating plans and budget of the NCERC Pilot Plant;
• Advise on research and development priorities and projects to be carried out at the NCERC Pilot Plant;
• Advise on policies and procedures regarding the management and operation of the NCERC Pilot Plant (including contracts, project selection, and personnel issues);
• Develop by-laws;
• Submit a final report to the governor and General Assembly outlining the progress, accomplishments, and a financial report for the year; and
• Establish and operate the NCERC at Southern Illinois University at Edwardsville as a State Biorefining Center of Excellence with a focus on areas including the following: performing collaborative research; offering training and educational services; advancing the state biofuels industry; pursuing funding sources; and serving as an independent source for testing and validation.

(Reference 110 Illinois Compiled Statutes 520/6.5 to 520/6.6)

Alternative Fuel Vehicle Labeling Requirement

Vehicles powered by propane or compressed natural gas must visibly display identifying decals, as established by the National Fire Protection Association. (Reference 625 Illinois Compiled Statutes 5/12-704.3)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles may operate on streets with posted speed limits of 35 miles per hour (mph) or less, if authorized by the local government. Low-speed vehicles are allowed to cross a road or street at an intersection where the road or street has a posted speed limit of up to 45 mph. Low-speed vehicles may cross an intersection where the road or street has a posted speed limit of more than 45 mph if the intersection is controlled by a traffic light or a four-way stop sign. Local governments may, however, restrict low-speed vehicle access on streets with posted speed limits of 30 mph or less. Low-speed vehicles are defined as four-wheeled motor vehicles capable of maintaining a speed of more than 20 mph, but not more than 25 mph, and conform to federal regulations under Title 49 of the Code of Federal Regulations, section 571.500. (Reference Senate Bill 1641, 2011, and 625 Illinois Compiled Statutes 5/1-140.7 and 5/11-1426.2)

Idle Reduction Requirement

A person that operates a diesel powered motor vehicle in certain counties and townships may not cause or allow the motor vehicle, when it is not in motion, to idle for more than a total of 10 minutes within any one hour period. If the vehicle is waiting to weigh, load, or unload cargo or freight, it may idle for up to 30 minutes within a one hour period. Specified areas include the counties of Cook, DuPage, Lake, Kane, McHenry, Will, Madison, St. Clair, and Monroe, and the townships of Oswego (Kendall County) and Aux Sable and Goose Lake (Grundy County). Exceptions apply, including those pertaining to vehicle weight, traffic, auxiliary power use, outside temperature, and emergency vehicles. (Reference 625 Illinois Compiled Statutes 5/11-1429)