HB4196eng 103RD GENERAL ASSEMBLY

HB4196 Engrossed LRB103 34797 MXP 64648 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, 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

(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.

(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 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 funds under the Program for grants to the eligible purchaser of an electric school bus.

(i) All awards granted under this Section are subject to appropriation by the General Assembly.