Illinois Alternate Fuels
Rebate Program
Application Instructions
IMPORTANT: BE SURE TO READ THESE INSTRUCTIONS IN ORDER TO
SUBMIT A COMPLETE AND ACCURATE APPLICATION. Incomplete
and erroneous applications will be denied. Make sure to use
the correct type of rebate application form. Links to the required
Rebate & W-9 forms can be found in this document.
Due to the increasingly large number of applicants, some
rebates may not be issued until three to four months after the end
of the rebate application period. Please be patient as we work
to process all applications as expediently as possible. You
will either receive a rebate check or a letter explaining why your
application was not approved.
The Illinois Alternate Fuels Rebate Program started in 1998 and over
$3.5 million in rebates have been issued through 2007. Anyone located
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 Illinois EPA will
issue rebates as determined by the availability of funds in the Alternate
Fuels Fund.
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, you
can call us at (217) 557-1441. Our office hours are 8:30 a.m. – 5:00
p.m. Monday-Friday, except state holidays.
(1) FUEL REBATE
The Fuel Rebate applies to the cost of purchasing and using E85 (85%
ethanol blend) in an E85 flexible fuel vehicle (FFV), including an EPA-certified
converted vehicle, or using Biodiesel (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” of E85 is likely to be less than gasoline,
the 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 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:
- All Fuel Receipts or Invoices for E85 or Biodiesel (B20+) purchased
during the year (we only need the E85 or Biodiesel fuel receipts)
- Completed E85 Fuel Rebate
Application or
Biodiesel (B20+)
Rebate Application.
- 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 currently 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 throughout 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. If you are a fleet with multiple vehicles, see “For
Fleet Applications involving Multiple Vehicles” below.
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 Applications involving Multiple Vehicles: In
applying for Fuel Rebates for multiple vehicles using E85 or Biodiesel
(B20+) fuel, you 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 E-85 or Biodiesel used during the
calendar year. If using Biodiesel (B20+), please record the estimated
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, 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
The Vehicle Rebate applies to the incremental cost of an alternate fuel
vehicle purchased from a dealership or similar vendor as compared to
the cost of its gasoline or diesel counterpart. The vehicle must
be purchased from an Illinois dealership or similar company doing business
in Illinois. No out-of-state vehicle purchases are eligible. The
only exception is for heavy-duty specialty vehicles (i.e., natural gas
transit buses) in which an Illinois company does not sell that particular
type of vehicle.
A Vehicle Rebate is more appropriate for E85, natural
gas, propane, and hydrogen vehicles. A few of the auto manufacturers
make vehicles that run on natural gas or propane, and hydrogen vehicles
are not yet being marketed to the public. There are some models
of E85 FFVs that have an “upcharge” for the flexible-fuel
engine, although most 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:
- A copy of the purchase invoice showing the negotiated cost 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.
- 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. For further information
in determining whether a new E85 flexible fuel vehicle would be eligible
for a "Vehicle Rebate," please read the October
2008 letter sent to Illinois car dealers.
- Completed Vehicle Rebate
Application
- 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, then the amount of the Vehicle Rebate would be $1,200.
Application Deadline for a Vehicle Rebate: The
Illinois EPA processes Vehicle Rebates twice each year, at the end of
June and at the end of the year. You must apply for this rebate
in the same year as when you purchased the vehicle.* The application
deadline for a Vehicle Rebate for an alternate fuel vehicle purchased
in 2009 is December 31, 2009.* However, if you purchase the
vehicle in the first half of the year, you can get your rebate earlier
if you submit the application by June 30, 2009.
*If you purchase a vehicle in December 2009, the Vehicle Rebate application
is not due until January 31, 2010 (e.g., you are given an extra month
to apply for a vehicle purchased in December).
(3) CONVERSION REBATE
The Conversion Rebate applies to the cost of converting a conventional
gasoline or diesel vehicle to an alternate fuel. A conversion rebate
is more appropriate for natural gas, propane, and electric vehicles. There
is one company that offers E85 conversions for a few types of vehicles. See
the “Contacts” page on this website for more information
on known companies that do vehicle conversions.
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 similar
CARB certificate 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,
for an electric vehicle conversion, please complete the first four lines
of the “Conversion Information” section and leave the “certifying
agent” and “converter or owner certification” blank.
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:
- 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. 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.
- Completed Conversion
Rebate Application
- Completed W-9
Form
- 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: The
Illinois EPA processes Conversion Rebates twice each year, at the end
of June and at the end of the year. You must apply for this rebate
in the same year as when the vehicle conversion was completed.* The
application deadline for a Conversion Rebate in which the conversion
is completed in 2009 is December 31, 2009*. However,
if the conversion is completed in the first half of the year, you can
get your rebate earlier if you submit the application by June 30, 2009.
*If you have a vehicle converted in December 2009, the Conversion Rebate
application is not due until January 31, 2010 (e.g., you are given an
extra month to apply for a vehicle conversion completed in December).
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