Clean Vehicles, Clean Fuels, Clean Air, Clean Cities!


Drive Clean Chicago

Drive Clean Chicago aims to promote clean air and better business solutions for the Chicago area fleets by providing $14 million in incentives to accelerate the adoption of alternative fuel vehicles. Funded through Congestion Mitigation and Air Quality funding resources, the Chicago Department of Transportation is administering this incentive program that comprises of three innovative funds providing rebates and voucher incentives to advance clean vehicle technologies in the Chicago 6-county area: Cook, DuPage, Kane, Lake, McHenry and Will.

  • Drive Clean Truck provides vouchers for Class 2-8 all-electric and hybrid trucks and buses.
  • Drive Clean Taxi provides vouchers for CNG, CNG conversions, and electric taxi and other public passenger vehicles.
  • Drive Clean Station will provide grants for public CNG and Fast Charging electric vehicle stations.

Application Deadline: See program website for details.

Illinois Clean Diesel Grant Program

Illinois Clean Diesel grant programs support various projects to promote clean diesel technologies. Any government or business fleet interested in applying for CMAQ Engine Repower funds (e.g., removing older, dirtier engines from off-road equipment to replace them with new, cleaner, more fuel-efficient engines), CMAQ School Bus funds (e.g., installing direct-fired heaters on school buses to reduce idling during colder weather), and Diesel Emissions Reduction Act (DERA) funds can find the applications below. A current W9 must be submitted with all applications.


Illinois Clean Diesel Grant Program Application

Vehicle Information Spreadsheet

Chicago Area Green Fleet Grant Program 

The Illinois EPA is currently accepting applications for the Chicago Area Green Fleet Grant Program.  Application forms can be found here.

The Program is limited to public and private fleets operating in the Chicago area (primarily Cook, DuPage, Kane, Lake, McHenry and Will counties).  The Illinois EPA is collecting applications and there is no set application due date.  Questions can be sent directly to Darwin Burkhart or call 217/524-5008.

Program Overview
The Illinois EPA received $10 million in federal funding to further promote natural gas and propane vehicles and certain types of alternate fuel-powered off-road equipment in the Chicago area. A major focus of this funding is medium- and heavy-duty vehicles, such as trucks, buses, and delivery vehicles, operated by both government and private fleets. In addition, some light-duty vehicles for government fleets will be considered. The funding can also be used as an incentive for the purchase of new off-road equipment that operates with natural gas, propane, or electricity, in which such equipment would normally run on diesel fuel. Specifically, this funding is to be utilized for the following:
  1. For the purchase of new natural gas and propane on-road vehicles
  2. For converting existing conventional vehicles to natural gas or propane using EPA-certified or approved conversion systems, and
  3. For the purchase of new off-road mobile equipment (e.g., construction, quarry, airport, rail yard) that would normally run on diesel fuel to be powered by natural gas, propane, or electricity.


Chicago Area Green Fleet Grant Program Applications

Please note that all applications require a current W9 to be attached.

Illinois Biodiesel Tax Incentive

Illinois enacted a sales tax incentive for the sale of biodiesel blends in 2003 and extended through 2018. Due to the financial advantage of selling biodiesel blends, most retail fuel outlets in Illinois sell B11 or higher. The exemption has two parts:

  • Partial (20%) exemption of the state’s sales tax (6.25%) applicable to the proceeds from the sale of biodiesel blends of 1-10%
  • Full exemption of the state’s sales tax (6.25%) applicable to the proceeds from the sale of biodiesel blends of 11% or more

The blender is entitled to the biodiesel sales tax exemption. Credit is only allowed if the blender obtains a certification from the producer of B100 that specifies virgin or recycled feedstock.

Federal and State Incentives

The U.S. Department of Energy’s Alternative Fuels & Advanced Vehicles Data Center is your source to finding the federal and state incentives and laws surrounding air quality, fuel efficiency, and alternative fuels and advanced transportation technologies.

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