HB3481 102ND GENERAL ASSEMBLY

LRB102 04372 RJF 14390 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3481

Introduced 2/22/2021, by Rep. Denyse Stoneback

SYNOPSIS AS INTRODUCED:

New Act

Creates the Electric Vehicle Charging Station Financing Program Act. Provides that the Electric Vehicle Charging Station Financing Program is to be administered by the Office of the State Treasurer. Provides that loans under the Program shall be used for the design, development, purchase, and installation of qualified electric vehicle charging stations in the State of Illinois either for use by private homeowners or for use by small businesses. Provides for funding of Program loans. Provides requirements for borrowers and lenders in applying for loans under the Program. Provides for the adoption of rules. Provides that State agencies may promote the Program as a financial solution for specified purposes. Requires the State Treasurer to annually submit a report concerning the Program to the General Assembly and Governor. Provides for the content of the report.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Electric Vehicle Charging Station Financing Program Act.

Section 5. Definitions. As used in this Act:

"Participating financial institution" means any federal or State-chartered bank, savings association, certified Community Development Financial Institution (CDFI), or credit union participating as a lender in the Program. To be eligible as a lender under the Program, a participating financial institution shall apply with the Office of the State Treasurer as a lend under the Program, and must certify that it is in good standing with its regulatory body (Federal Reserve, Federal Deposit Insurance Corporation (FDIC), Comptroller of Currency, Thrift Supervision, National Credit Union Administration (NCUA), or State banking authority, as applicable). The State Treasurer may by rule provided for finance lenders and other entities to also be eligible.

"Private homeowner" means a person or persons who have primary ownership of a house with a garage.

"Program" means the Electric Vehicle Charging Station Financing Program created under this Act.

"Small business" means a company, corporation, partnership, firm, or other entity or group of entities that together with its affiliates, has 1,000 or fewer employees.

Section 10. Electric Vehicle Charging Station Financing Program.

(a) The Electric Vehicle Charging Station Financing Program is created as a Program to be administered by the Office of the State Treasurer. Loans provided under the Program shall be used for the design, development, purchase, and installation of qualified electric vehicle charging stations in the State of Illinois either for use by private homeowners or for use by small businesses. For small businesses, the charging station must be accessible to the business owner's employees, the general public, or to the tenants of a multi-unit dwelling, and must also meet technical requirements under subsection (f) and any rules adopted under subsection (g), which the borrower must certify to on the loan enrollment application.

(b) Initial financing for the Program shall be provided using funds appropriated for use by the Office of the State Treasurer. The State Treasurer shall designate $2,000,000 of such funds to be used to provide loans under the Program, and divide such funds into 2 separate accounts. One account shall be dedicated for loans to private homeowners, to which $1,000,000 shall be allocated. One account shall be dedicated for loans to small businesses, to which the remaining $1,000,000 shall be allocated. Of the $1,000,000 allocated for small business loans, at least $150,000 shall dedicated for use by businesses located in disproportionately impacted areas as determined by the Department of Commerce and Economic Opportunity.

(c) For purposes of initiating a Program loan, an eligible private homeowner or small business shall apply to a participating financial institution for a loan provided under the Program. The participating financial institution shall enroll each loan with the Program. When a lending financial institution's first loan is enrolled, the Program shall establish a loan loss reserve account for that lender. Each time a subsequent loan is enrolled, the Program shall contribute to the loan loss reserve account. The lending financial institution shall use funds in the loan loss reserve account to cover potential losses and rebates.

(d) At the time of loan enrollment approval, the Program shall pay a contribution into the lending financial institution's loan loss reserve account of 20% of the loan amount with an additional 10%, for small businesses, for installations at multi-unit dwellings and in disadvantaged communities. Loan enrollment applications must be received within 15 business days after the "Date of First Disbursement" (Date of Loan). If a qualified claim is requested, the Program shall approve up to 100% of the claim or the amount of the lending financial institution's loss reserve balance, whichever is less. After a borrowing small business or private homeowner repays the loan, or after 48 months with no more than one 30 day late payment, the borrower is eligible for a rebate of half the enrolled contribution amount. For borrowers eligible for a rebate, the rebate shall be funded from the lending financial institution's loan loss reserve account.

(e) A borrowing private homeowner shall not be eligible for a loan under the Program if he or she: (i) owes back taxes of any kind with the State; (ii) is renting the home to a 3rd party; or (iii) has a household with a combined household income over $150,000. Additionally, loans provided to a private homeowner cannot be used to build or install electric vehicle charging infrastructure for the purposes of a multi-unit dwelling.

(f) Upon applying for a loan under the Program, a borrowing small business shall certify that the proposed electric vehicle charging station shall meet the following technical requirements: (i) consist of level 2 alternating current chargers-SAE J1772 standard; or (ii) consist of direct current fast chargers with either CHAdeMO standard, SAE combination standard, or CHAdeMO/SAE combination standard. The borrowing small business shall have legal control of the electric vehicle charging station installation site for a term that is equal to or greater than the length of the enrolled loan; provided, that the installation site lies within the State of Illinois.

(g) The State Treasurer shall adopt all rules necessary for the implementation and administration of the Program created under this Act.

Section 15. Promotion. State agencies may promote the Program as a financial solution to accelerate implementation of electric vehicle readiness plans, to help small businesses acquire capital for electric vehicle infrastructure, and to assist communities or constituents in complying with local air quality and transportation policy goals.

Section 20. Report. The State Treasurer shall annually submit a report concerning the Program to the General Assembly and Governor. The report shall include the following information: (i) how many loans were disbursed with the accompanying dollar amount; (ii) how many loans were repaid (when eligible); (iii) loans disbursed, categorized by industry (for small businesses); and (iv) any other information concerning the Program that the State Treasurer deems relevant.