SB2706 103RD GENERAL ASSEMBLY

LRB103 36867 JAG 66979 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2706

Introduced 1/10/2024, by Sen. Laura M. Murphy

SYNOPSIS AS INTRODUCED:

415 ILCS 5/9.19 new

Amends the Environmental Protection Act. Requires the Environmental Protection Agency to establish a Fleet Electrification Incentive Program to promote the use of electric trucks by fleet owners by offering a voucher of $200,000 per electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck purchased or leased for a fleet by the fleet's owner or operator. Provides that an applicant shall submit a proof of purchase, lease, or other binding contract regarding the electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck in order to be awarded the voucher. Requires an applicant who is awarded a voucher to agree to participate in annual surveys on specified metrics. Contains other program requirements. Defines "Class 6 truck", "Class 7 truck", and "Class 8 truck".

A BILL FOR

AN ACT concerning safety.

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 9.19 as follows:

(415 ILCS 5/9.19 new)

Sec. 9.19. Fleet Electrification Incentive Program.

(a) In this Section:

"Class 6 truck" means a truck categorized by the Federal Highway Administration, using gross vehicle weight ratings, as a Class 6 vehicle.

"Class 7 truck" means a truck categorized by the Federal Highway Administration, using gross vehicle weight ratings, as a Class 7 vehicle.

"Class 8 truck" means a truck categorized by the Federal Highway Administration, using gross vehicle weight ratings, as a Class 8 vehicle.

(b) The Agency shall establish a Fleet Electrification Incentive Program to provide private fleet owners and operators in Illinois grants to promote their use of electric Class 6 trucks, electric Class 7 trucks, and electric Class 8 trucks. The Program shall offer qualifying applicants a grant of $200,000 per electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck purchased or leased for a private fleet by the fleet's owner or operator.

(c) The Agency shall award grants under the Fleet Electrification Incentive Program on a competitive basis according to the availability of funding. To be eligible to receive a grant under the Program an applicant must, at a minimum, satisfy all of the following criteria:

(1) The electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck must be registered in Illinois or recognized under the International Registration Plan.

(2) The fleet owner or operator must be domiciled in Illinois.

(3) If the electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck is leased by the fleet owner or operator, the term of the lease must be at least 36 months.

In providing grants under the Program, the Agency may give weight to applications based upon the potential impact of the geographic locations and routes of the applicant's fleet on pollution affecting environmental justice communities.

In providing grants under the Program, the Agency shall give priority to applicants who have 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 $200,000 to purchase or lease one electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck. However, a fleet owner or operator may submit one application for each diesel Class 6 truck, diesel Class 7 truck, or diesel Class 8 truck eligible to be replaced under the Program and that is owned by the fleet owner or operator. A fleet owner or operator may be awarded multiple grants under the Program.

(e) The Agency shall notify an applicant when the applicant's grant request has been granted preliminary approval by the Agency. After an applicant receives notification that the applicant's grant request has been granted preliminary approval by the Agency, the applicant shall submit a proof of purchase, lease, or other binding contract regarding the electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck in order to be awarded the grant. The preliminary approval of the grant request may be renewed at 3-month intervals for up to 18 months, pending receipt of the applicant's proof of purchase, lease, or other binding contract regarding the purchase or leasing of the electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck.

(f) A fleet owner or operator who receives a grant under this Section must retain title or right of use of the electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck incentivized under the Program for a minimum of 60 consecutive months after the purchase date or lease date of the electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck. Resale or sublease of the electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck for financial gain within 60 months after the purchase date or lease date is prohibited.

(g) Upon approval of an initial application for a grant under the Program, the applicant may participate in a vehicle replacement program through which:

(1) a diesel Class 6 truck, diesel Class 7 truck, or diesel Class 8 truck from the applicant's existing fleet is scrapped; or

(2) ownership of the oldest diesel Class 6 truck, diesel Class 7 truck, or diesel Class 8 truck in the applicant's existing fleet is transferred to another fleet owner or operator who agrees to scrap their oldest diesel Class 6 truck, diesel Class 7 truck, or diesel Class 8 truck upon receipt.

The electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck for which the grant is awarded must be predominantly used in the same general location in Illinois as the fleet owner's or operators' scrapped or transferred diesel Class 6 truck, diesel Class 7 truck, or diesel Class 8 was used by the fleet owner or operator.

(h) Notwithstanding any other provision of this Section:

(1) a fleet owner or operator shall scrap a diesel Class 6 truck, diesel Class 7 truck, or diesel Class 8 truck for which a grant is awarded under this Section if the model year of the diesel Class 6 truck, diesel Class 7 truck, or diesel Class 8 truck is 2009 or older; and

(2) if the diesel Class 6 truck, diesel Class 7 truck, or diesel Class 8 truck for which a grant is awarded under this Section has a model year of 2010 or newer, the fleet owner or operator must keep, donate, or sell that diesel Class 6 truck, diesel Class 7 truck, or diesel Class 8 truck.

(i) The deployment of the electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck in the applicant's fleet is required within 24 months after receipt of notice of approval of the applicant's Program application. Total completion of the project for which the electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck is purchased or leased must occur within 36 months after receipt of grant funds under the Program.

(j) An applicant who is awarded a grant under this Section must agree to participate in annual surveys regarding metrics as determined by the Agency, such as average daily mileage, kilowatts consumed, and emissions reduction data.