TITLE 35: ENVIRONMENTAL PROTECTION
    SUBTITLE B: AIR POLLUTION
    CHAPTER II: ENVIRONMENTAL PROTECTION AGENCY
    PART 275
    ALTERNATE FUELS PROGRAM
    SUBPART A: GENERAL PROVISIONS
    Section
    275.100
    Purpose
    275.110
    Other Definitions
    275.120
    Definitions
    275.130
    Abbreviations
    275.140
    Incorporations by Reference
    SUBPART B: REBATES
    Section
    275.200
    Eligibility
    275.210
    Alternate Fuel Vehicles and Rebates
    275.220
    Fuel Cost Differential Rebate
    275.230
    Applications
    275.240
    Agency Action
    Appendix A Annual Fuel Cost Differential For LDVs
    AUTHORITY:
    Implementing and authorized by Section 15 of the Alternate Fuels Act
    (415 ILCS 120/15).
    SOURCE:
    Adopted at 21 Ill. Reg. 7150, effective May 29, 1997.
    SUBPART A: GENERAL PROVISIONS
    Section 275.100
    Purpose
    This Part establishes procedures for applying for an alternate fuel vehicle rebate or domestic
    renewable fuel rebate as authorized by the Alternate Fuels Act [415 ILCS 120]. Applications
    for The Alternate Fuels Program may be submitted for calendar years 1997 and 1998, and pre-
    approved rebates may also be given in fiscal years 1999 and 2000,depending on fund
    availability.
    Section 275.110
    Other Definitions
    Unless otherwise defined herein and unless a different meaning of a term is clear from its
    context, the definitions of terms used in this Part shall have the meanings specified by 35 Ill.
    Adm. Code 241.102 and Section 10 of the Alternate Fuels Act [415 ILCS 120/10]. The

    definitions in Section 275.120 of this Subpart are applicable only to the provisions of this Part.
    Section 275.120
    Definitions
    "Alternate fuel" means liquefied petroleum gas, natural gas, fuel composed of a minimum
    80% ethanol or 80% bio-based methanol, fuels derived from 80% biomass, or electricity.
    "Alternate fuel vehicle" means any motor vehicle or engine that meets a federal or CARB
    emission standard, or meets the federal anti-tampering provisions pursuant to USEPA
    Memorandum 1A, incorporated by reference at Section 275.140 of this Subpart, is
    capable of using an alternate fuel, and is operated in the State of Illinois.
    "CONVENTIONAL", WHEN USED TO MODIFY THE WORD "VEHICLE",
    "ENGINE", OR "FUEL", MEANS GASOLINE OR DIESEL OR ANY
    REFORMULATIONS OF THOSE FUELS. [415 ILCS 120/10]
    "COVERED AREA" MEANS THE COUNTIES OF COOK, DUPAGE, KANE, LAKE,
    MCHENRY, AND WILL AND THE TOWNSHIPS OF AUX SABLE AND GOOSE
    LAKE IN GRUNDY COUNTY AND THE TOWNSHIP OF OSWEGO IN KENDALL
    COUNTY. [415 ILCS 120/10]
    "Domestic renewable fuel" means a fuel produced in the United States composed of a
    minimum 80% ethanol or 80% bio-based methanol, or other fuels derived from 80%
    biomass.
    "Federal low emission standard" means the low emission vehicle (LEV), ultra-low
    emission vehicle (ULEV), zero emission vehicle (ZEV), or inherently low emission
    vehicle (ILEV) standard, as set forth in 40 CFR Part 88, incorporated by reference in
    Section 275.140 of this Subpart.
    AGross Vehicle Weight Rating (GVWR)@ means the total vehicle weight, including the
    maximum load, as designated by the original equipment manufacturer.
    AHeavy-duty vehicle (HDV)@ means a motor vehicle whose GVWR is more than 8,500
    lbs.
    AInherently Low Emission Vehicle (ILEV)@ means any LDV certified to the applicable
    ILEV evaporative emission standard found in 40 CFR 88, incorporated by reference at
    Section 275.140 of this Subpart, or any HDV with an engine certified to the applicable
    ILEV standard. No dual fueled or flexible fueled vehicle shall be considered an ILEV
    unless it is certified to the applicable standard(s) (i.e., LEV, ULEV or ZEV) for such
    weight class on all fuel types for which it is designed to operate.
    ALight-duty vehicle (LDV)@ means a motor vehicle whose GVWR is no more than
    8,500 lbs.

    ALOCATION@ MEANS A PARCEL OF REAL PROPERTY OR MULTIPLE,
    CONTIGUOUS PARCELS OF REAL PROPERTY THAT ARE SEPARATED BY
    PRIVATE ROADWAYS, PUBLIC ROADWAYS, OR PRIVATE OR PUBLIC
    RIGHTS-OF-WAY AND ARE OWNED, OPERATED, LEASED, OR UNDER THE
    COMMON CONTROL OF ONE PARTY. [415 ILCS 120/10]
    ALow Emission Vehicle (LEV)@ means any LDV, or any HDV with an engine certified
    to the applicable federal low emission vehicle standard, in 40 CFR 88, incorporated by
    reference in Section 275.140 of this Subpart.
    AOwner@ means any person who has legal or equitable title to a motor vehicle.
    APerson@ means any individual, corporation, partnership, firm, association, trust, estate,
    public or private institution, group, state, municipality, political subdivision of a state,
    any agency, department, or instrumentality of the United States, and any officer, agent or
    employee of any of the above.
    APrivate fueling operation@ means any activity where alternate fuel is transferred from a
    stationary or mobile source to a fuel storage system used to provide fuel to the engine or
    motor of that vehicle where such fuel is not available to the public.
    APublic fueling operation@ means any site where alternate fuel is transferred from a
    stationary source to a fuel storage system used to provide fuel to the engine or motor of
    that vehicle, and is a retail operation.
    "Retail" means to sell directly to the ultimate consumer in small quantities (e.g., gallons)
    and deliver fuel to a fuel storage system used to provide fuel to the engine or motor of a
    vehicle.
    "Small fleet owner" means a person who owns or operates no more than 30 motor
    vehicles and employs 100 or fewer employees.
    AUltra Low Emission Vehicle (ULEV)@ means any LDV, or any HDV with an engine
    certified to the applicable federal ultra low emission vehicle standard, as set forth in
    Appendix A of this Part and in 40 CFR 88, incorporated by reference in Section 275.140
    of this Subpart.
    AZero Emission Vehicle (ZEV)@ means any LDV, or any HDV certified to the
    applicable federal zero emission vehicle standard in 40 CFR 88, incorporated by
    reference in Section 275.140 of this Subpart.
    Section 275.130
    Abbreviations
    Agency
    Illinois Environmental Protection Agency
    CARB
    California Air Resources Board
    FEIN
    Federal Employer Identification Number

    GVWR
    gross vehicle weight rating
    HDV
    heavy-duty vehicle
    ILEV
    inherently low emission vehicle
    LDV
    light-duty vehicle
    LEV
    low emission vehicle
    MY
    model year
    mi/yr
    miles driven per year
    OEM
    original equipment manufacturer
    ULEV
    ultra low emission vehicle
    USEPA
    United States Environmental Protection Agency
    VEC
    vehicle emission configuration
    VIN
    vehicle identification number
    ZEV
    zero emission vehicle
    Section 275.140
    Incorporations by Reference
    The following materials are incorporated by reference and do not contain any subsequent
    additions or amendments:
    a)
    Clean Fuel Vehicles, 40 CFR 88.
    b)
    Control of Air Pollution from New, and In-Use Motor Vehicles and New and In-
    Use Motor Vehicle Engines: Certification and Test Procedures, 40 CFR 86.
    c)
    Mobile Source Enforcement Memorandum No. 1A: Interim Tampering
    Enforcement Policy, USEPA (June 25, 1974).
    SUBPART B: REBATES
    Section 275.200
    Eligibility
    a)
    Owners of alternate fuel vehicles may apply for a rebate under this Part by
    meeting the requirements of either subsection (a)(1), (a)(2) or (a)(3) of this
    Section and submitting the information required by Section 275.230 of this
    Subpart to the Agency:
    1)
    Converting a conventional vehicle to an alternate fuel vehicle in
    accordance with the requirements of Section 275.210(a) of this Subpart;
    2)
    Purchasing an alternate fuel OEM vehicle or engine in accordance with
    the requirements of Section 275.210(b) of this Subpart; or
    3)
    Purchasing a domestic renewable fuel in accordance with the requirements
    of Section 275.220 of this Subpart.
    b)
    Notwithstanding subsection (a) of this Section, alternate fuel VEHICLES

    OWNED BY THE FEDERAL GOVERNMENT OR REGISTERED OR
    OPERATED IN A STATE OUTSIDE OF ILLINOIS ARE NOT ELIGIBLE FOR
    REBATES OFFERED UNDER THIS PART. [415 ILCS 120/30(d)]
    c)
    Rebates will be given in accordance with the criteria in Section 275.240 of this
    Subpart. The total amount of all rebates issued in the Alternate Fuel Program for
    a given calendar year will be limited to the funds available in the Alternate Fuel
    Fund for that calendar year.
    Section 275.210
    Alternate Fuel Vehicles and Rebates
    A motor vehicle is an alternate fuel vehicle for the purposes of this Part if it meets the
    requirements of either subsection (a) or (b), and subsection (c) or (d) of this Section:
    a)
    Conversion of a conventional vehicle to an alternate fuel vehicle:
    1)
    A conventional vehicle that was not certified to a federal emission
    standard by the manufacturer as an alternate fuel vehicle, but is
    subsequently converted in accordance with the requirements of
    subsection (c) or (d) of this Section and is operated as an alternate
    fuel vehicle; and
    2)
    CONVERSION OF A CONVENTIONAL VEHICLE TO ALTERNATE
    FUEL CAPABILITY MUST TAKE PLACE IN ILLINOIS. [415 ILCS
    120/30(a)]
    b)
    Purchase of an OEM alternate fuel vehicle or engine:
    1)
    The alternate fuel OEM vehicle or engine, when operated using an
    alternate fuel, is certified to meet the requirements of subsection (c) or (d)
    of this Section; and
    2)
    A NEW OEM VEHICLE OR ENGINE MUST BE PURCHASED IN
    ILLINOIS AND MUST EITHER BE AN ALTERNATE FUEL
    VEHICLE OR USED IN AN ALTERNATE FUEL VEHICLE. [415 ILCS
    120/30(b)]
    c)
    An eligible light-duty alternate fuel vehicle must meet the requirements of either
    subsection(c)(1)(A), (B), or (C), or (c)(2)(A) or (B) of this Section, and
    subsection (c)(3) of this Section:
    1)
    The conversion systems must be the latest model in current production and
    shall have been tested and certified by either:
    A)
    USEPA;

    B)
    CARB; or
    C)
    A conversion system manufacturer using USEPA Memorandum
    1A for the specific engine families, incorporated by reference in
    Section 275.140 of this Part; or
    2)
    OEM vehicles must be certified by either:
    A)
    USEPA; or
    B)
    CARB; and
    3)
    Notwithstanding subsections (c)(1) and (c)(2) of this Section, an alternate
    fuel LDV vehicle must MEET OR EXCEED EMISSION STANDARDS
    APPLICABLE FOR THE VEHICLE'S MODEL YEAR AND WEIGHT
    CLASS. [415 ILCS 120/20]
    d)
    An eligible heavy-duty alternate fuel vehicle must meet the requirements of
    subsections (d)(1) or (d)(2), and (d)(3) of this Section:
    1)
    The conversion system must be the latest model in current production and
    shall have been tested and certified by USEPA; or
    2)
    The OEM vehicle must be certified by USEPA; and
    3)
    NOTWITHSTANDING THE ABOVE, ENGINES USED IN
    ALTERNATE FUEL VEHICLES GREATER THAN 8500 POUNDS
    GVWR, WHETHER NEW OR REMANUFACTURED, SHALL MEET
    THE APPROPRIATE UNITED STATES ENVIRONMENTAL
    PROTECTION AGENCY EMISSIONS STANDARDS AT THE TIME
    OF MANUFACTURE, AND IF CONVERTED, SHALL MEET THE
    STANDARDS IN EFFECT AT THE TIME OF CONVERSION. [415
    ILCS 120/20]
    Section 275.220
    Fuel Cost Differential Rebate
    a)
    An owner may apply for a fuel cost differential rebate, if the owner:
    1)
    Owns an alternate fuel vehicle(s) that meets the requirements in Section
    275.210(a) or (b) of this Subpart, and the alternate fuel vehicle is
    registered and operated in the State of Illinois; and
    2)
    Has purchased domestic renewable fuel to fuel an alternate fuel vehicle(s).
    b)
    As part of the application required pursuant to Section 275.230(d) of this Subpart,
    the owner must certify to the following:

    1)
    The type of alternate fuel vehicle (HDV or LDV);
    2)
    The type of domestic renewable fuel on which the vehicle operates;
    3)
    That the domestic renewable fuel was used in the vehicle for over one-half
    of the miles driven annually, and the number of miles driven; and
    4)
    That the costs were incurred.
    c)
    An owner approved for a rebate pursuant to Section 275.240 of this Subpart is
    eligible to receive the rebate for up to 3 consecutive years. To receive the rebate,
    the owner must:
    1)
    Submit the documentation required pursuant to Section 275.230(a), (d)
    and (e) of this Subpart for each qualifying year.
    2)
    Continue to own the alternate fuel vehicle and use domestic renewable
    fuel for more than one-half of the miles driven. IF THE ALTERNATE
    FUEL VEHICLE CEASES TO BE REGISTERED TO THE ORIGINAL
    APPLICANT OWNER, A PRORATED INSTALLMENT SHALL BE
    PAID TO THE OWNER OR THE OWNER'S DESIGNEE AND THE
    REMAINDER OF THE REBATE SHALL BE CANCELED [415 ILCS
    120/30(c)] or if domestic renewable fuel is used for less than one-half of
    the miles driven in the applicable calendar year, the rebate will be
    canceled for that year.
    3)
    Maintain records of domestic renewable fuel purchases for the applicable
    years. Records must include:
    A)
    Receipts of bulk fuel purchases;
    B)
    Receipts of fuel purchases from a retail fuel operation; or
    C)
    Bill for fuels provided through metered service.
    d)
    The amount of the annual rebate shall be determined as follows:
    1)
    For LDVs using methanol or ethanol fuels, the amount listed in Appendix
    A of this Part.
    2)
    For LDVs using biomass fuels and any HDV using domestic renewable
    fuels, the formula below, but in no case will a rebate for the three year
    period exceed $4,000:
    mi/yr * f
    1
    /gal - mi/yr * f
    2
    /gal * (.80)

    ?
    mi/gal
    1
    mi/gal
    2
    ?
    f
    1
    /gal =
    price per gallon in dollars of the domestic renewable fuel
    f
    2
    /gal =
    price per gallon in dollars of the conventional fuel
    mi/gal
    1
    =
    number of miles to the gallon on domestic renewable fuel
    mi/gal
    2
    =
    number of miles to the gallon on the conventional fuel
    mi/yr =
    number of miles driven in the applicable calendar year
    Section 275.230
    Applications
    To apply for a rebate, owners of alternate fuel vehicles must provide the Agency with the
    information listed in subsections (a) and (e) of this Section and the information from either
    subsection (b),(c), or (d) of this Section.
    a)
    Applications for a conversion, OEM or fuel cost differential rebate must include
    the following information:
    1)
    For each alternate fuel vehicle:
    A)
    The make, model and year of manufacture;
    B)
    The date of vehicle acquisition or conversion;
    C)
    The vehicle identification number (VIN);
    D)
    The license plate number and the state of registration;
    E)
    The emission standard(s), to which the alternate fuel vehicle is
    certified (e.g., conventional, LEV, ULEV, ZEV, or ILEV) and the
    certifying agent (e.g., USEPA, CARB, or the Conversion System
    Manufacturer to Memorandum No. 1A, incoporated by reference
    in Section 275.140 of this Part);
    F)
    The alternate fuel for which the vehicle is certified to meet the
    requirements of Section 275.210(c) or (d) of this Subpart;
    G)
    For LDVs, the 8-character alpha numeric bar-coded vehicle
    emission configuration number assigned by the manufacturer and
    imprinted on vehicles manufactured on or after MY 1993;
    H)
    The GVWR of the vehicle; and
    I)
    Whether the vehicle will be primarily fueled at a public or a
    private fueling operation.
    2)
    The amount of the rebate being requested and documentation as required

    by either subsection (b), (c) or (d) of this Section, demonstrating that the
    costs were actually incurred and how the rebate amount was calculated.
    b)
    Applicants for an OEM alternate fuel vehicle rebate, in addition to the
    information required by subsections (a) and (e) of this Section, must provide the
    following:
    1)
    A copy of the sales invoice showing the purchase price of the alternate
    fuel vehicle; and
    2)
    Documentation from the retailer indicating the retail cost or sticker price
    of a conventional fuel vehicle that is the same make, model, equipment,
    and year of as the alternate fuel vehicle or engine purchased for which a
    rebate is being sought under this Part.
    c)
    Applicants for a conversion alternate fuel vehicle rebate, in addition to the
    information required by subsections (a) and (e) of this Section, must provide:
    1)
    The name and address of the person(s) performing the conversion;
    2)
    A statement that the motor vehicle was converted in accordance with the
    applicable requirements of Section 275.210(a) of this Subpart; and
    3)
    A copy of the conversion invoice showing the cost of the conversion.
    d)
    Applicants for a fuel cost differential rebate, in addition to the information
    required in subsections (a) and (e) of this Section, must provide:
    1)
    For the first year:
    A)
    For LDVs using methanol or ethanol, the name of the primary fuel
    supplier(s), the number of gallons of domestic renewable fuel
    purchased, and number of miles driven that calendar year; and
    B)
    For alternate fuel LDVs using biomass fuels and any alternate fuel
    HDV, the name of the primary fuel supplier(s), the name of the
    domestic renewable fuel, the number of miles to the gallon for the
    domestic renewable fuel, the number of miles to the gallon for the
    conventional fuel, the cost per gallon of the domestic renewable
    fuel, the cost per gallon of the conventional fuel, and the number
    of miles driven that calendar year.
    2)
    For the second and third years, the owner must annually certify, once
    approved, that the owner still owns and operates the alternate fuel vehicle,
    has purchased domestic renewable fuel, and that domestic renewable fuel
    was used for more than one-half of the miles driven in that calendar year.

    The statement must be signed by the owner, and must be submitted to the
    Agency no more than 30 days after the anniversary date of the rebate.
    e)
    In addition to the information required in subsection (a) of this Section and either
    subsection (b), (c) or (d) of this Section, all applications submitted to the Agency
    must include the following:
    1)
    The name, address, and phone number of the owner;
    2)
    If the applicant is not an individual:
    A)
    The name of the entity, mailing address and location of records if
    they are different from the information reported in subsection
    (e)(1) of this Section;
    B)
    The number of employees; and
    C)
    The FEIN number;
    3)
    The number of motor vehicles owned;
    4)
    The primary location(s) of the vehicles;
    5)
    The name, address and social security number of the payee for the rebate;
    and
    6)
    The signature of the owner.
    f)
    Applications for costs incurred during calendar years 1997 and 1998 that meet
    the requirements of this Section and either Section 275.210 or 275.220 of this
    Subpart must be submitted by December 31 of that calendar year, but may be
    submitted earlier.
    Section 275.240
    Agency Action
    a)
    The Agency shall review and approve applications that meet the requirements of
    Section 275.230 of this Subpart in June and December of fiscal years 1998, 1999,
    and 2000, consistent with fund availability and prioritization as set forth in
    subsections (b), (c) and (d) of this Section.
    b)
    The Agency shall establish priority classes for rebate applications for rebates in
    the following order:
    1)
    Vehicles of small fleet owners located in the covered area that refuel at a
    public fueling operation;

    2)
    Vehicles of small fleet owners located outside of the covered area that
    refuel at a public fueling operation;
    3)
    Other vehicles located in the covered area that refuel at a public fueling
    operation;
    4)
    Other vehicles located outside of the covered area that refuel at a public
    fueling operation;
    5)
    Vehicles of small fleet owners located in the covered area that refuel at a
    private fueling operation;
    6)
    Vehicles of small fleet owners located outside of the covered area that
    refuel at a private fueling operation;
    7)
    Other vehicles located in the covered area that refuel at a private fueling
    operation;
    8)
    Other vehicles located outside of the covered area that refuel at a private
    fueling operation and all other vehicles.
    c)
    In addition to the priorities in subsection (b) of this Section, the Agency shall
    further sub-prioritize applications within a priority class by giving an alternate
    fuel vehicle that is federally certified or CARB certified to an ILEV, LEV, ULEV
    or ZEV emission standard higher priority within their priority class as determined
    by subsection (b) of this Section.
    d)
    In addition to the priorities in subsections (b) and (c) of this Section, the Agency
    shall further prioritize applications within a sub-priority class as determined by
    subsection (c) of this Section by giving applications priority in the order in which
    the application was received.
    e)
    Notwithstanding subsections (b) and (c) of this Section, rebate amounts shall be
    limited by the following criteria:
    1)
    An owner may receive only one type of rebate per alternate fuel vehicle
    either for the conversion, OEM, or the fuel cost differential. An alternate
    fuel vehicle is eligible for only one rebate.
    2)
    An owner of an alternate fuel vehicle may receive rebates for no more
    than 150 alternate fuel vehicles per location and no more than 300
    alternate fuel vehicles total for all locations.
    3)
    Rebates for OEMs or conversions of conventional vehicles are limited to
    $4,000 per vehicle or 80% of the cost of either subsection (e)(3)(A) or
    (e)(3)(B) of this Section, whichever is less:

    A)
    The cost of converting a conventional vehicle to an alternate fuel
    vehicle; or
    B)
    The additional cost of purchasing an OEM alternate fuel vehicle or
    engine versus a conventional vehicle or engine.
    4)
    Rebates for the purchase of domestic renewable fuels will be determined
    in accordance with Section 275.220(d) of this Subpart, but in no case will
    a rebate for the three year period exceed $4,000.
    f)
    Rebates in any period will be limited to the funds available in the Alternate Fuel
    Fund for the applicable period.
    g)
    The Agency shall notify owners of whether their application for a rebate has been
    approved or held over to a subsequent period within 90 days after the end of the
    applicable period. Applications held over retain their priority as determined by
    subsections (b), (c) and (d) of this Section.

    275.Appendix A Annual Fuel Cost Differential For LDVs
    ANNUAL MILES
    ETHANOL FUEL
    (in dollars)
    METHANOL FUEL
    (in dollars)
    >17,500 mi/yr
    450
    525
    <17,500 mi/yr
    340
    390

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