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

Funding


IL Volkswagen Environmental Mitigation Trust Fund

The Illinois Environmental Protection Agency (Illinois EPA) has been designated as the lead agency to administer funds allocated to Illinois from the Volkswagen Environmental Mitigation Trust (Trust). The Trust was established by Appendix D of the VW Settlement. Illinois’ initial allocation of funds is approximately $108 million to be used to fund mobile source diesel emission reduction projects. The funds are to be used for projects that reduce emissions of nitrogen oxides in Illinois. Click here for more info.

Fund Funding Amount Available Application Due Date
DACI- Volkswagen Round 2 $650,000 (Round 2 funding) July 16,2019

Driving a Cleaner Illinois Grant Program

Driving a Cleaner Illinois is the Illinois EPA’s grant program developed to distribute funding for various types of diesel emission reduction projects involving on-road vehicles, off-road equipment, and electric charging. The Driving a Cleaner Illinois Program receives funding from a variety of sources, including the Volkswagen Environmental Mitigation Trust, U.S. Environmental Protection Agency’s Diesel Emission Reduction Act (DERA) Program, and Federal Highway Administration’s Congestion Mitigation and Air Quality Improvement (CMAQ) Program.

CURRENT FUNDING OPPORTUNITY
For the Chicago area, up to $860,329 in CMAQ funding is being made available for the purchase of new natural gas or propane fleet vehicles, or the conversion of conventional fleet vehicles to operate on natural gas or propane. Click here for more info.

Fund Funding Amount Available Application Due Date
DACI-CMAQ Green Fleets $860,329 September 17,2019

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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