Illinois Alternate Fuels Rebate Program

Application Instructions

IMPORTANT:  BE SURE TO READ THESE INSTRUCTIONS IN ORDER TO SUBMIT A COMPLETE AND ACCURATE APPLICATION AND TO USE THE CORRECT APPLICATION FORM.  Links to the required Alternate Fuel Rebate Program form (e.g., there are different forms corresponding to the three different types of rebates) and the W-9 form can be found within the section for each type of rebate.

Notice:  The Illinois EPA will issue rebates as determined by the availability of funds in the Alternate Fuels Fund.  Please refer to the updated announcements regarding program funding under the Illinois Alternate Fuels Rebate Program section on the homepage at www.illinoisgreenfleets.org .  

Program Summary

The Illinois Alternate Fuels Rebate Program started in 1998 and over $4.2 million has been issued through 2008.  Anyone located in Illinois who owns an alternate fuel vehicle registered and operated in Illinois is eligible for this program, including individuals, businesses, local governments, and organizations.  The only entity not eligible for this program is the federal government.  Rebates may be issued to any applicant for up to 300 vehicles. 

The types of alternate fuels eligible for this program include:  ethanol (85% blend or “E85”), biodiesel (at least 20% blend or “B20”), natural gas, propane, electricity, and hydrogen.  For biodiesel, the fuel must meet nationally-recognized ASTM D6751 or more recent ASTM fuel quality standards.  Most commercial grade biodiesel meets this national fuel quality specification.  Electric vehicles are those that are fully powered by electricity.  Gasoline-electric hybrid vehicles are not defined as “electric vehicles” and are not eligible for this program since they are primarily operated on and refueled with gasoline.  A hybrid vehicle would be eligible if it was designed to run on E85 or other alternate fuel (e.g., not primarily fueled with gasoline).

There are three types of rebates offered.  However, the type of vehicle or fuel may dictate the type of rebate.  Only one of the three types of rebates can be applied for per alternate fuel vehicle.  A vehicle is only eligible to receive a rebate once in its life (a Fuel Rebate application may be submitted for three consecutive years).  If you are purchasing a “used” vehicle that may appear to be otherwise eligible, please call us to verify that a previous owner did not use up the vehicle’s eligibility for this program.  If you have a question that is not addressed in these instructions or need clarification prior to submitting your application, please call us at (800) 635-2380.  Our office hours are 8:30 a.m. – 5:00 p.m. Monday-Friday, except state holidays.

Application Instructions for the Three Different Types of Rebates

(1)       FUEL REBATE

The Fuel Rebate applies to the cost of purchasing and using E85 fuel (85% ethanol blend) in an E85 flexible fuel vehicle (FFV), including an EPA-certified converted vehicle, or using Biodiesel fuel (at least 20% blend, or B20+) in an on-road diesel vehicle.  The majority of fuel purchases must be made from Illinois retail stations or fuel suppliers.  The rebate is associated with each vehicle using E85 or Biodiesel (B20+) fuel.  Although the “pump price” per gallon of E85 may be less than gasoline, the Fuel Rebate will offset the costs from a vehicle’s reduction in miles per gallon due to ethanol’s lower energy content.  An applicant for a Fuel Rebate may apply for a rebate for each vehicle using E85 or Biodiesel (B20+) for up to three consecutive years.

In order to be eligible for a Fuel Rebate, the vehicle must refuel with E85 or Biodiesel (B20+) at least 50 percent of the time during the calendar year.  This required 50 percent minimal usage is measured for the entire 12-month program year time period.  For example, if an E85 FFV refuels an average of once per week, then the vehicle should be refueled at least 26 times with E85 during the year in order to be eligible for a rebate.  If the vehicle is not purchased or E85 is not used until April, then the average refueling with E85 would need to be at least 75 percent during the rest of the year to achieve the 50 percent average for the 12-month time period.  If the vehicle is not purchased or E85 is not used until July, then the vehicle would need to be refueled 100 percent of the time with E85 for the remainder of the year to result in an annual 50 percent average.  If the vehicle is not owned for at least 6 months in that year and/or E85 usage does not begin until after July, then the prospective applicant cannot meet the 50 percent usage requirement for the year and will have to wait until the following year to begin the first of the three consecutive year rebate eligibility cycle.  In this case, the 12-month time period and the first year’s cycle would begin the following January 1. 

What You Need to Submit in your Application for a Fuel Rebate: 

1. All Fuel Receipts or Invoices for E85 or Biodiesel (B20+) purchased during the year are to be submitted with the application.  We only need the E85 or Biodiesel fuel receipts.  If you are an individual applying for a Fuel Rebate for more than one vehicle, submit a separate application for each vehicle.  The fuel receipts for each vehicle must be separated and submitted with that vehicle’s application form.  If you are a fleet manager applying for Fuel Rebates for several vehicles, see “For Fleet Fuel Rebate Applications involving Several Fleet Vehicles.”
   
   
2. Completed E85 Fuel Rebate Application or
    Biodiesel (B20+) Rebate Application.
   
   
3. Completed W-9 Form

The fuel receipts or invoices should clearly identify “E85” or the biodiesel blend.  If the receipts or invoices do not have this type of product identifier, then we need other documentation from the retail station or supplier to verify the use of E85 or Biodiesel (B20+).

Fuel Rebate Amounts:  The amount of an E85 fuel rebate is $340 if the vehicle travels less than 17,500 miles in the application year and $450 if it travels 17,500 or more miles.  For Biodiesel (B20+), the rebate amount is based on the incremental cost of using the Biodiesel fuel versus regular diesel.  The rebate amount will be calculated at 80 percent of the average incremental cost of using Biodiesel (B20+) throughout the year.  The applicant is to provide documentation on the average cost differences between regular diesel and Biodiesel (B20+) during the year.

It is up to the applicant to apply for the second and third year Fuel Rebate for an eligible vehicle.  The Illinois EPA will not send out reminders.

Application Deadline for a Fuel Rebate:  For the 2009 calendar year, the Fuel Rebate application is due January 31, 2010.  We must have your E85 or Biodiesel fuel receipts (or invoices) for all of 2009 enclosed with the application.  Therefore, do not send the Fuel Rebate application until December or January, but it must be postmarked by January 31, 2010 for consideration.

For Fleet Fuel Rebate Applications involving Several Fleet Vehicles:  Fleet managers applying for Fuel Rebates for multiple vehicles using E85 or Biodiesel (B20+) fuel are encouraged to submit a fleet spreadsheet in lieu of separate applications for each vehicle.  The fleet spreadsheets to list the E85 or Biodiesel vehicles can be found below.  You may enter the vehicle information on these spreadsheets and print them to submit with one copy of the application form. When using the spreadsheet, please submit it with the completed application form, the W-9 form, and copies of fuel purchase invoices or receipts from an Illinois retail station or fuel distributor for the E85 or Biodiesel (B20+) used during the calendar year. If using Biodiesel (B20+), please record the average incremental cost per gallon of the B20 or higher blends during the year versus the cost of regular diesel in the “Fuel Information” box. The “Vehicle Information” box may be left blank if the vehicles are listed on a spreadsheet. If both fuels are being used in the fleet and you are applying for Fuel Rebates for E85 and Biodiesel (B20+), please keep the application forms, the E85 and Biodiesel spreadsheets, and fuel invoices for the two fuels separate and submit two application packages, one for each fuel type. For fleets applying for Vehicle Rebates or Conversion Rebates, a separate application must be completed for each vehicle.

Spreadsheet for E85 Fleets

Spreadsheet for Biodiesel (B20+) Fleets

(2)       VEHICLE REBATE

A Vehicle Rebate is more appropriate for E85, natural gas, propane, electric, and hydrogen vehicles.  A few of the auto manufacturers make vehicles that run on natural gas, propane, or electricity, and hydrogen vehicles are not yet being marketed to the public.  Please contact the Illinois EPA at (800) 635-2380 if you are purchasing an electric vehicle to inquire about the eligibility status and application procedure.

There are some models of E85 FFVs that have an “upcharge” for the flexible-fuel engine, although many E85 vehicles do not cost any more than their gasoline-only counterparts.  Consumers that pay extra for a new E85 vehicle because of the flexible-fuel engine can apply for a Vehicle Rebate, in lieu of a Fuel Rebate, if they choose to do so.

What You Need to Submit in your Application for a Vehicle Rebate: 

1. A copy of the purchase invoice documenting the purchase of the alternate fuel vehicle.  “Proof of payment” needs to be included.  Acceptable forms of “proof of payment” include a copy of a canceled check (front and back), or the customer purchase invoice stamped as “Paid” or otherwise showing the vehicle purchase transaction.  Paperwork showing only cost estimates without demonstration that the vehicle was purchased is not acceptable.
   


2. A copy of the manufacturer’s MSRP window sticker or other document that distinctly itemizes the “upcharge” of the alternate fuel vehicle or engine (e.g., for E85, the flexible fuel engine option) as compared to the same type of conventional vehicle.  An E85 Flex Fuel engine that is listed and included as part of an “upgrade package” with other add-on options on the MSRP sticker cannot be issued a rebate.  The MSRP information must distinctly list the additional cost of the E85 Flex Fuel engine, separate from other add-on options.
   


3. Completed Vehicle Rebate Application
   


4. Completed W-9 Form

Vehicle Rebate Amount:  The amount of the Vehicle Rebate is for 80% of the incremental cost of the alternate fuel vehicle versus the same type of gasoline or diesel vehicle, up to $4,000.  For example, if the “upcharge” of an E85 flexible fuel vehicle is $1,500 (as distinctly listed on the MSRP sticker or other paperwork for that vehicle), then the amount of the Vehicle Rebate would be $1,200.

Application Deadline for a Vehicle Rebate:  There has been a change in the application deadline for a Vehicle Rebate!  In 2009, the Alternate Fuels Act was amended by the Illinois General Assembly and signed by the Governor to change the application deadline for a Vehicle Rebate.  However, this change became effective on August 14, 2009 and only affects alternate fuel vehicles purchased on or after August 14, 2009.

Applicants for a Vehicle Rebate in which the vehicle was purchased from January 1, 2009 through August 13, 2009, the application deadline is December 31, 2009 (same deadline as before).

Applicants for a Vehicle Rebate in which the vehicle was purchased on or after August 14, 2009, there is now a 12-month application time period (with the deadline being the last day of the 12th month).  For example, if the vehicle was purchased on August 16, 2009, the application must be postmarked by August 31, 2010.

The Illinois EPA processes Vehicle Rebates twice each year, at the end of June and at the end of the year, on a six month cycle.  Your approved Vehicle Rebate application will be processed for payment at the end of the next six-month cycle.  Please call the Illinois EPA at (800) 635-2380 if you have any questions.

(3)       CONVERSION REBATE

Due to federal laws, only vehicle conversion systems that are tested and certified for emissions by the U.S. Environmental Protection Agency or the California Air Resources Board (CARB) can be installed on a vehicle.  Several certified conversion systems for natural gas and propane are available on the market, along with the one known E85 conversion system.  The Illinois EPA cannot accept any rebate applications for a conversion system that is not emissions-certified by the U.S. EPA or CARB, per federal law.  You will need to prove U.S. EPA conversion certification by providing a copy of the Certificate of Conformity issued by the U.S. EPA’s Office of Transportation and Air Quality or a valid Retrofit System Certification issued by CARB with your Conversion Rebate application.  Be sure to ask the conversion company or system manufacturer for a copy of the conversion system’s Certificate of Conformity or CARB certificate.  Since electric vehicles do not utilize internal combustion engines and have no tailpipe emissions, the U.S. EPA does not provide a Certificate of Conformity for electric conversions.  Therefore, an applicant for an electric vehicle conversion does not need to provide this certificate.  However, we recommend that you call the Illinois EPA if you are interested in applying for an electric vehicle conversion rebate regarding certain types of vehicles.

To be eligible for a Conversion Rebate, the conversion “must take place in Illinois.”  Therefore, if you are having a vehicle converted to an alternate fuel, you must use an Illinois business or the vehicle must be converted in Illinois by an individual or other qualified converter to be eligible.

What You Need to Submit in your Application for a Conversion Rebate: 

1. A copy of the conversion invoice (if conversion was done by a commercial business) or copies of receipts and invoices for engine components, fuel system, and other relevant items associated with the vehicle conversion.  Statements or invoices for conversion parts or labor from individuals, and not from a commercial business, are not accepted.  The invoices and receipts need to demonstrate “Proof of payment.”  Acceptable forms of “proof of payment” include a copy of a canceled check (front and back) or the customer purchase invoice stamped as “Paid” or otherwise showing the conversion purchase transaction.  Paperwork showing only cost estimates without demonstration that the conversion was purchased or completed is not acceptable.
   
   
2. Completed Conversion Rebate Application
   
   
3. Completed W-9 Form
   
   
4. The U.S. EPA Certificate of Conformity or CARB certificate (except electric vehicle conversions)
   

Conversion Rebate Amount:  The amount of the Conversion Rebate is for 80% of the cost of the conversion of the vehicle to an alternate fuel up to $4,000.

Application Deadline for a Conversion Rebate: There has been a change in the application deadline for a Conversion Rebate!  In 2009, the Alternate Fuels Act was amended by the Illinois General Assembly and signed by the Governor to change the application deadline for a Conversion Rebate.  However, this change became effective on August 14, 2009 and only affects vehicle conversions to an alternate fuel that are completed on or after August 14, 2009.

For applicants for a Conversion Rebate, in which the vehicle conversion was completed from January 1, 2009 through August 13, 2009, the application deadline is December 31, 2009 (same deadline as before).

For applicants for a Conversion Rebate, in which the vehicle conversion was completed on or after August 14, 2009, there is now a 12-month application time period (with the deadline being the last day of the 12th month).  For example, if the vehicle conversion was completed on August 16, 2009, the application must be postmarked by August 31, 2010.

The Illinois EPA processes Conversion Rebates twice each year, at the end of June and at the end of the year, on a six-month cycle.  Your approved Conversion Rebate application will be processed for payment at the end of the next six-month cycle.  Please call the Illinois EPA at (800) 635-2380 if you have any questions.