Illinois Alternate Fuels Rebate Program

Program Summary & Instructions

Announcements

• IMPORTANT: Be sure to read this “Program Summary & Instructions” in order to submit a complete and accurate application and to use the correct application form.
• Incomplete applications may be denied for consideration
• Links to the required Alternate Fuel Rebate Program form (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.
• Rebate applications may take up to five months after the deadline for processing.
• If you have a question that is not addressed in this summary, want to check on the eligibility of a certain type of vehicle before making the purchase, or need clarification on the type of rebate to apply for 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.

Program Summary

Purpose: The objectives of the Illinois Alternate Fuels Rebate Program are to provide an incentive for the purchase of clean alternate fuel vehicles, the conversion of vehicles to a clean alternate fuel, the use of renewable E85 and biodiesel fuels, the development of refueling infrastructure for various alternate fuels, reduced pollution and cleaner air, and providing greater demand for our green, domestic, renewable energy sources manufactured and/or distributed here in Illinois.

The Illinois Alternate Fuels Rebate Program started in 1998 and over $6 million in rebates has been issued through 2011 for the implementation of over 8,000 alternate fuel vehicles statewide. In addition, over 35 million gallons of E85 and biodiesel fuel have been consumed by our applicants.

Eligible Applicants

• Any individual, business, local government unit, school, or organization located in Illinois is eligible (departments or agencies of the federal government and car dealerships are not eligible)
• The alternate fuel vehicle must be registered and operated in Illinois
• An eligible fleet applicant can only receive rebates for a maximum of 300 alternate fuel vehicles during the lifetime of the program, or for no more than 150 alternate fuel vehicles at any one location

Eligible Fuels and Vehicles

• E85 (85% ethanol blend) fuel and E85 Flexible Fuel Vehicles (FFV)
• Natural gas vehicles
• Propane vehicles
• Hydrogen vehicles


• Biodiesel fuel (at least 20% blend- B20 or greater)
  
  To be eligible, the Biodiesel (B20+) 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
  
  Electric vehicles that are eligible for this program are those that are predominantly powered by and primarily “refueled” with electricity and do not have restrictions confining them to operate only on certain types of streets or roads.  Electricity must be the primary fuel that powers the vehicle, and not used as a supplemental or secondary fuel source.

  Electric vehicles that qualify for the “Vehicle Rebate” in Section 2 below include the following: Nissan Leaf, Chevrolet Volt, Mitsubishi i-MiEV, Ford Focus Electric, and Ford/Azure Transit Connect Electric. To inquire about the eligibility status of other types of electric vehicles not listed, please call us at (217) 557-1441.

Three Types of Rebates

1. Fuel Rebate - for purchase of E85 and Biodiesel (B20+) fuel
2. Vehicle Rebate - for purchase of natural gas vehicles, propane vehicles, electric vehicles, hydrogen vehicles, and certain E85 FFVs
3. Conversion Rebate – for purchase of a certified conversion system to convert an eligible conventional gasoline or diesel vehicle to run on natural gas, propane, or E85, or for the eligible costs incurred in converting a vehicle to be an electric vehicle

• Only one of the three types of rebates can be applied for per alternate fuel vehicle
• An alternate fuel vehicle is only eligible to receive a Vehicle or Conversion rebate once in its life, regardless of ownership. A Fuel Rebate application may be submitted for three consecutive years for the same vehicle.

Requirements for the Three Types of Rebates

(1)       FUEL REBATE

Eligibility

• For the purchase and use of E85 fuel in an E85 flexible fuel vehicle (FFV)
• For the purchase and use of Biodiesel (B20+) in an on-road diesel vehicle such as a truck or bus
• The majority of fuel purchases must be made from Illinois retail stations or fuel suppliers
• An applicant for a Fuel Rebate may apply for each vehicle using E85 or Biodiesel (B20+) for up to three consecutive years, with the first year of the “three-year clock” beginning with the first approved Fuel Rebate for that vehicle
• It is the responsibility of the applicant to apply for the second and third year Fuel Rebate for an eligible vehicle. The Illinois EPA does not send out reminders.
• Failure to submit a follow-up Fuel Rebate application or having an application denied as being ineligible in the second and/or third year counts against the three consecutive year eligibility time period for that vehicle
• The Fuel Rebate is tied to the vehicle and it is no longer eligible after the three consecutive year time period, regardless of who owns the vehicle
• If you are purchasing a “used” vehicle that may appear to be otherwise eligible for a Fuel Rebate, please call us to verify that a previous owner did not use up the vehicle’s eligibility for this program.

Three Primary Requirements for the Fuel Rebate

1. The eligible 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 January to December program year.  For example, if an E85 FFV refuels an average of once per week, then the vehicle should be refueled at least 26 times during the 52 weeks of the year with E85 to be eligible.  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.  In this case, the 12-month time period and the first year’s eligibility would begin the following January 1.
   
   
2. An E85 FFV or vehicles using Biodiesel (B20+) must use a minimum of 250 gallons of the E85 or B20+ during the year AND must be refueled with E85 or B20+ at least 50 percent of the time during the program year (#1 above) to be eligible for a Fuel Rebate.  Applications with less than 250 gallons of E85 or B20+ used in a vehicle during the year, as reflected in the submitted fuel receipts or invoices, will be deemed ineligible for that year.     
   
   
3. Each receipt submitted with the application must show a minimum of 5 gallons of E85 purchased.  Receipts with less than 5 gallons will not be counted towards the total.  The fuel receipts or invoices must indicate E85 or the biodiesel blend.  

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

1. Completed E85 Fuel Rebate Application or Biodiesel (B20+) Rebate Application form
   
   
2. All fuel receipts or invoices for E85 or Biodiesel (B20+) purchased during the year for that vehicle (we only need the E85 or Biodiesel fuel receipts); do not include receipts from previous years as these are ineligible
   
   
3. Completed W-9 form

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.”

Fuel Rebate Amounts

• If the eligible vehicle travels 17,500 miles or less during the year, the E85 Fuel Rebate amount is $340
  
  
• If the eligible vehicle travels more than 17,500 miles during the year, the E85 Fuel Rebate amount is $450
  
  
• 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.  We suggest that fleets using B20+ fuel document the current per gallon price of regular diesel on the fuel invoice when taking B20+ fuel deliveries.

Application Deadline for a Fuel Rebate

For the 2012 program year, the Fuel Rebate application must be postmarked by January 31, 2013.  Do not send the Fuel Rebate application until December or January so you can include all receipts from the entire year.

Timing of Fuel Rebate Issuances

Dependant on funding availability in the Alternate Fuels Fund, the Illinois EPA will begin processing applications after the January 31st deadline. 

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+) purchased 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

Eligibility

• For the purchase of a new alternate fuel vehicle, such as a natural gas, propane, E85, electric, or hydrogen vehicle (used or pre-owned vehicles and vehicles that are leased and not purchased are not eligible for this program).
  
  
• Alternate fuel vehicles eligible for a Vehicle Rebate must be legal to be driven on all public roadways in Illinois.  Low-speed or Neighborhood Electric Vehicles and any other type of vehicle that has restrictions confining them to only certain types of streets or roads are not eligible. 
  
  
• The vehicle must be purchased from an Illinois dealership and the purchase invoice must show that the business is located 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.
  
  
• New E85 flexible-fuel vehicles (FFV) that have a distinct “upcharge” for the E85 engine are eligible  Note:  Many E85 vehicles do not cost more than their gasoline-only counterparts and would not be eligible for a Vehicle Rebate.  Consumers that pay extra for a new E85 vehicle because of the added costs of a flexible-fuel engine can apply for a Vehicle Rebate, in lieu of a Fuel Rebate, if they choose to do so. See below regarding needed documentation for the E85 engine up-charge for this type of rebate.

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

1. A completed Vehicle Rebate Application form.
   


2. 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” are 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.
   


3. A copy of the manufacturer’s MSRP window sticker or other document that shows the total cost of the vehicle or “upcharge” of the alternate fuel vehicle or engine compared to the conventional model (if applicable).  Note:  An E85 FFV engine that is listed as part of an “upgrade package” with other add-on options reflected as one overall cost amount on the MSRP sticker is not acceptable.  The MSRP information must distinctly itemize the additional cost of the E85 FFV engine, separate from other add-on options.  Please contact the Illinois EPA for assistance on whether a new E85 FFV purchase is eligible for a Vehicle Rebate.
4. Completed W-9 Form

Vehicle Rebate Amount

• For a new alternate fuel vehicle that has a conventional gasoline or diesel make and model counterpart, the amount of the rebate is 80 percent of the incremental cost of the alternate fuel vehicle versus its conventional counterpart (same make, model, and model year) up to $4,000.
  
  
• For a new alternate fuel vehicle that does not have a conventional make and model counterpart, but does have an increased cost due to the alternate fuel engine/motor and fuel system versus a comparable conventional engine/motor, the amount of the rebate is 10 percent of the base retail price of the vehicle as reflected on the MSRP, not including add-on equipment options, up to $4,000. At the current time, the only vehicles that would be eligible for a 10 percent rebate amount are new electric vehicles purchased from an Illinois dealership. See "Eligibility" section above.

Application Deadline for a Vehicle Rebate

Vehicle Rebate applications are due 12 months after the date of vehicle purchase.  The postmark date must be by the last day of the twelfth month after the purchase date (i.e., a vehicle purchased on August 23, 2011 must have its application postmarked by August 31, 2012).

Timing of Vehicle Rebate

The Illinois EPA processes Vehicle Rebates twice per year - after June 30 and after December 31, depending on funding availability in the Alternate Fuels Fund.

(3)       CONVERSION REBATE

Eligibility

• For converting a conventional gasoline or diesel vehicle to be predominantly powered by and refueled with an alternate fuel such that it is now an alternate fuel vehicle
  


• Conversion systems are available to convert certain types of conventional vehicles (certain vehicle makes, models, and model years) to run on natural gas, propane, and E85
  


• The conversion system must be certified or approved by either the U.S. EPA or California Air Resources Board (CARB) for that particular make, model, model year, and engine type.  Conversions that are not certified or approved by U.S. EPA or CARB for your particular vehicle are not eligible for this program.
  


• The vehicle conversion must be performed in Illinois either by a qualified business or person located in Illinois
  


• The converted vehicle must be legal to be driven on all public roadways in Illinois

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

1. A completed Conversion Rebate Application form
2. 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/retail business, are not acceptable.  The invoices and receipts need to list or describe the conversion components being purchased and 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.
   
   
3. A copy of the U.S. EPA’s 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 for your conversion system (if applicable).  Be sure to ask the conversion company or system manufacturer for a copy of one of these certificates to show that the conversion performed on your vehicle is certified and meets all federal requirements for conversions.  An applicant for an electric vehicle conversion may not need to provide this certificate.  However, please call the Illinois EPA if you are interested in an electric vehicle conversion regarding eligibility status of certain types of vehicles.
   
   
4. Completed W-9 Form
   
   
   

Conversion Rebate Amount

The Conversion Rebate is for 80 percent of the cost of converting the vehicle (conversion system components and eligible labor costs), up to $4,000.  Labor costs are not eligible for individuals converting their own vehicles or other individuals or companies that are not in business to perform vehicle conversions. 

Application Deadline for a Conversion Rebate

Conversion Rebate applications are due 12 months after the date of conversion system or component purchase.  The postmark date must be by the last day of the twelfth month after the purchase date (i.e., a vehicle converted on August 23, 2011 must have its application postmarked by August 31, 2012)

Timing of Conversion Rebate Issuances

The Illinois EPA processes Conversion Rebates twice per year - after June 30 and after December 31, depending on funding availability in the Alternate Fuels Fund.