Bill Text: IL HB4196 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Environmental Protection Act. Requires the Environmental Protection Agency to establish a Fleet Electrification Incentive Program to provide fleet owners and operators in the State grants to promote the use of eligible electric vehicles. Provides that the Program shall offer qualifying purchasers a grant up to specified base amounts toward the purchase of eligible electric vehicles based on the Class of vehicle. Requires the Agency to award grants under the Program on a competitive basis according to the availability of funding. Provides that to be eligible to receive a grant under the Program a purchaser must satisfy all of the required criteria. Provides that the Agency shall give weight to an application based upon the potential impact of the geographic location and route of the purchaser's fleet on pollution affecting an equity investment eligible community. Requires the Agency to ensure that resale of a vehicle serving a public school or located within an equity investment eligible community shall result in the vehicle servicing a similarly situated community. Provides that grants under the Program may be combined with other public incentives but the total of governmental incentives shall not exceed a maximum of 80% of the purchase price of the vehicle. Requires the Agency to set aside 20% of the appropriated funds under the Program for grants to the purchaser of electric school buses. Provides that all awards granted are subject to appropriation by the General Assembly. Defines terms.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Engrossed) 2024-05-17 - Senate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Assignments [HB4196 Detail]

Download: Illinois-2023-HB4196-Engrossed.html

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AN ACT concerning transportation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Environmental Protection Act is amended by
adding Section 9.20 as follows:
(415 ILCS 5/9.20 new)
Sec. 9.20. Fleet Electrification Incentive Program.
(a) In this Section:
"Eligible electric vehicle" means an electric truck or
electric school bus categorized by the United States
Environmental Protection Agency Emissions Classifications,
using gross vehicle weight ratings, as a Class 2b, 3, 4, 5, 6,
7, or 8 vehicle, with or without a properly ventilated,
conventionally powered heater.
"Eligible purchaser" means a person who the Agency
determines:
(1) is the purchaser of an eligible electric vehicle
that is registered in this State or recognized under the
International Registration Plan;
(2) is domiciled in this State;
(3) in the case of a purchaser who is the lessee of an
eligible electric vehicle, is the lessee of the vehicle
for a term of at least 60 months; and

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(4) has demonstrated, to the satisfaction of the
Agency, that the eligible electric vehicle will operate
within the State for at least 80% of its operational hours
once purchased and delivered.
"Equity investment eligible community" has the meaning
given in the Energy Transition Act.
"Program" means the Fleet Electrification Incentive
Program established under this Section.
"Purchaser" means a fleet owner, operator, or provider
that will operate or manage the vehicle for a minimum of 5
years after receipt of the vehicle, whether through lease or
direct purchase.
(b) To promote the use of eligible electric vehicles, the
Agency shall establish, by rule, a Fleet Electrification
Incentive Program through which it provides eligible
purchasers a grant of up to the following base amounts for the
purchase of an eligible electric vehicle:
(1) $7,500 for a Class 2b vehicle;
(2) $45,000 for a Class 3 vehicle;
(3) $60,000 for a Class 4 or Class 5 vehicle;
(4) $85,000 for a Class 6 or Class 7 vehicle; and
(5) $120,000 for a Class 8 vehicle.
In addition, the Agency shall offer increased grant
incentives of an additional 65% of the base amount for the
purchase of a school bus that will serve a public school
district.

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(c) The Agency shall award grants under the Program to
eligible purchasers on a competitive basis according to the
availability of funding. The Agency shall use a points-based
quantitative evaluation to be determined by the Agency by
rule.
The Agency shall award additional points to an application
from an eligible purchaser whose eligible electric vehicles
are to be domiciled in an equity investment eligible
community.
The Agency shall also award additional points to an
eligible purchaser who has negotiated and entered into a
collective bargaining agreement at the time of application for
the grant.
(d) A grant provided under the Program is limited to a
maximum award of 80% of the purchase price per eligible
electric vehicle. Multiple eligible electric vehicles may be
included in each grant under the Program. An eligible
purchaser may be awarded multiple grants under the Program;
however, the Agency shall have the authority to implement, by
rule, a limit on the number of grants awarded to each
purchaser.
(e) An eligible purchaser shall enter into a grant
agreement with the Agency upon notification from the Agency
that the eligible purchaser's application has been approved.
Grants under this Section shall be provided by the Agency with
the submittal of a paid invoice for reimbursement. An eligible

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purchaser participating in the Program shall retain ownership
of the eligible electric vehicle and meet all applicable
project requirements for a minimum 5-year period after the
date the eligible purchaser receives the vehicle. Resale of an
eligible electric vehicle may be allowed within the 5-year
period if necessitated by unforeseen or unavoidable
circumstances with approval from the Agency. The Agency shall
ensure the resale of an eligible electric vehicle serving a
public school or located within an equity investment eligible
community shall result in the vehicle servicing a similarly
situated community.
(f) The deployment of the eligible electric vehicle in the
purchaser's fleet is required within 24 months after receipt
of notice of approval of the purchaser's Program application.
Total completion of the project for which the eligible
electric vehicle is purchased or leased must occur within 36
months after receipt of grant funds under the Program.
(g) A grant under this Section may be combined with other
public incentives to support fleet purchasing decisions.
Receipt of any other public incentive for an eligible electric
vehicle shall not preclude a purchaser from being awarded a
grant under this Section. However, the combined total of
governmental incentives, including, but not limited to, tax
credits, grants, or vouchers, shall not exceed 80% of the
purchase price of the vehicle.
(h) The Agency shall set aside 20% of the appropriated

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