Illinois Propane Laws and Incentives
State Incentives
Clean School Bus Program
The Illinois Clean School Bus Program was established by the Illinois Environmental Protection Agency in November 2003 and provides funding to assist schools and school districts to reduce emissions from diesel-powered school buses through emission control retrofits; implementation of cleaner fuels, including biodiesel, propane, and natural gas; and support for emissions reduction policies, including those related to idle reduction. Funding may be restricted to certain counties with further funding being secured through federal grants and other resources to implement the program on a statewide basis.
Alternative Fuel Vehicle (AFV) and Alternative Fuel Rebates
The Illinois Alternate Fuels Rebate Program (Rebate Program) provides a rebate for 80% of the incremental cost of purchasing an AFV (up to $4,000), 80% of the cost of federally certified AFV conversions (up to $4,000), and for the incremental cost of purchasing alternative fuels. Eligible fuels for the program include E85, diesel fuel blends containing at least 20% biodiesel (B20), natural gas, propane, electricity, and hydrogen. To be eligible, a vehicle must be an on-road vehicle, licensed, and legal to drive on public roads. For all rebates the AFV, conversion system, or alternative fuel must be purchased from an Illinois-based company or vendor. Hybrid electric vehicles are not eligible. The E85 fuel rebate is up to $450, or $340 per year (depending on vehicle miles traveled), for three years for each flexible fuel vehicle that uses E85 at least half the time. The biodiesel fuel rebate (for B20 and higher blends) is for 80% of the incremental cost of the biodiesel fuel, as compared to conventional diesel. The Rebate Program is open to all Illinois residents, businesses, government units (except federal government), and organizations located in Illinois. (Reference 415 Illinois Compiled Statutes 120/30)
Alternative Fuel Vehicle (AFV) Incentives
The Illinois Green Fleets Program recognizes and provides additional marketing opportunities for progressive fleets in Illinois that have a significant number of AFVs and use clean, domestically produced fuels.
State Laws and Regulations
Alternative Fuel Vehicle Labeling Requirement
Propane and compressed natural gas vehicles must display visible identifying decals, as established by the National Fire Protection Association. (Reference 625 Illinois Compiled Statutes 5/12-704.3)
Alternative Fuel Taxicab Regulation – Chicago
Effective July 1, 2007, Chicago taxi companies with 50 or more vehicles in their fleet as of April 1, 2006 must operate at least one alternative fuel taxi. No more than 2% of the taxi fleet's licensed taxicabs may be subject to this requirement. (Reference Municipal Code of Chicago 9-112-060 and City of Chicago Rules and Regulations for Taxicab Medallion License Holders Rule 5.01 (PDF 387 KB)
