Bill Text: IL SB2634 | 2023-2024 | 103rd General Assembly | Introduced

---

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 1-0)

Status: (Introduced) 2024-05-03 - Rule 3-9(a) / Re-referred to Assignments [SB2634 Detail]

Download: Illinois-2023-SB2634-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2634 Introduced 11/3/2023, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED:
415 ILCS 5/9.20 new
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.
LRB103 34798 MXP 64649 b
A BILL FOR
SB2634 LRB103 34798 MXP 64649 b
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. The use of a properly ventilated,
conventionally powered heater shall not make an otherwise
eligible electric vehicle ineligible under this Section.
"Equity investment eligible communities" has the meaning
given to that term in the Energy Transition Act.
"Program" means the Fleet Electrification Incentive
Program.
"Purchaser" means the fleet or owner, operator, or
provider who will operate or manage the vehicle for a minimum
of 5 years after receipt of the vehicle, whether through lease
or direct purchase.

SB2634 - 2 - LRB103 34798 MXP 64649 b
(b) The Agency shall establish a Fleet Electrification
Incentive Program to provide a fleet owner and operator in the
State grants to promote the use of eligible electric vehicles.
The Program shall offer a qualifying purchaser a grant up to
the following base amounts toward the purchase of an eligible
electric vehicle:
(1) $7,500 for Class 2b vehicles;
(2) $45,000 for Class 3 vehicles;
(3) $60,000 for Class 4 and Class 5 vehicles;
(4) $85,000 for Class 6 and Class 7 vehicles; and
(5) $120,000 for Class 8 vehicles.
The Program shall offer increased grant incentives of an
additional 15% of the base amount for the purchase of vehicles
that will be located within an equity investment eligible
community and 65% of the base amount for the purchase of a
school bus that will serve a public school district.
(c) The Agency shall award grants under the Program on a
competitive basis according to the availability of funding. To
be eligible to receive a grant under the Program a purchaser
must satisfy all of the following criteria:
(1) The eligible electric vehicle must be registered
in this State or recognized under the International
Registration Plan.
(2) The fleet owner or operator must be domiciled in
this State.
(3) If the eligible electric vehicle is leased by the

SB2634 - 3 - LRB103 34798 MXP 64649 b
purchaser, the term of the lease must be at least 60
months.
(4) Once the eligible electric vehicle is purchased
and delivered, the vehicle must operate within the State
for at least 80% of its operational hours.
In providing grants under the Program, 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 equity investment eligible communities.
In providing grants under the Program, the Agency shall
give priority to a 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 vehicle.
Multiple vehicles may be included in each grant under the
Program. A purchaser may be awarded multiple grants under the
Program, however, the Agency shall have the authority to
implement a limit on the number of grants awarded to each
purchaser.
(e) A purchaser shall enter into a grant agreement with
the Agency upon notification from the Agency that the
purchaser's application has been approved. Grants shall be
provided by the Agency with the submittal of a paid invoice for
reimbursement. A purchaser participating in the Program shall
retain ownership of the eligible electric vehicle and meet all

SB2634 - 4 - LRB103 34798 MXP 64649 b
applicable project requirements for a minimum 5-year period
after the date of the receipt of the vehicle. Resale of a
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 a 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
funds under the Program for grants to the purchaser of an
electric school bus.
(i) All awards granted under this Section are subject to

SB2634 - 5 - LRB103 34798 MXP 64649 b