Natural Gas Laws and Incentives in Illinois
The list below contains summaries of all Illinois laws and incentives related to natural gas.
Laws and Regulations
Alternative Fuel Vehicle Labeling Requirement
Vehicles powered by liquefied petroleum gas (propane) or compressed natural gas (CNG) must visibly display identifying decals, as established by the National Fire Protection Association’s standards for the Storage and Handling of Liquefied Petroleum Gases and for CNG Vehicular Fuel Systems.
(Reference 625 Illinois Compiled Statutes 5/12-704.3)
Alternative Fuels Tax and Reporting
Alternative fuel dealers must sell liquefied natural gas (LNG) and propane used as motor fuel in diesel gallon equivalents (DGEs). For taxation purposes, LNG and propane must be reported as DGEs and are taxed at a rate of $0.467 per DGE. One DGE is equal to 6.06 pounds (lbs.) of LNG and 6.41 lbs. of propane. Alternative fuel dealers must sell compressed natural gas (CNG) used as motor fuel in gasoline gallon equivalents (GGEs). CNG must be reported in GGEs and is taxed at a rate of $0.392 GGE. One GGE is equal to 5.66 lbs. of CNG. The motor fuels tax increases annually on July 1 by an amount equal to the percentage increase of the United States Department of Labor’s Consumer Price Index for All Urban Consumers. For current tax rates, see the Illinois Motor Tax Rates and Fees website.
(Reference 35 Illinois Compiled Statutes 505/1.8 and 505/2)
Public Utility Definition
An entity that owns, controls, operates, or manages a facility that supplies electricity to the public exclusively to charge all-electric and plug-in hybrid electric vehicles are not defined as a public utility. An entity that supplies compressed natural gas to fuel natural gas vehicles is also not defined as a public utility.
(Reference 220 Illinois Compiled Statutes 5/3-105 and 20 Illinois Compiled Statutes 627/10)
State Incentives
Diesel Emission Reduction Grants
The Illinois Environmental Protection Agency (IEPA) administers the Driving a Cleaner Illinois program for diesel emission reduction projects. Projects are funded by Illinois’ portion of the Volkswagen Environmental Mitigation Trust, the U.S. Environmental Protection Agency’s Diesel Emission Reduction Act (DERA) Program, and the U.S. Department of Transportation Federal Highway Administration’s Congestion Mitigation and Air Quality Improvement (CMAQ) Program. For more information, including funding availability, see the IEPA Driving a Cleaner Illinois website.
Natural Gas and Propane Vehicle Weight Exemption
A vehicle powered by natural gas or propane may exceed the state’s gross, axle, and bridge vehicle weight limits by up to 2,000 pounds. This exemption does not apply on interstate highways.
(Reference 625 Illinois Compiled Statutes 5/15-111)
School Bus Retrofit Reimbursement
The Illinois Department of Education will reimburse any qualifying school district for the cost of converting gasoline buses to more fuel-efficient engines or to engines using alternative fuels. Restrictions may apply.
(Reference 105 Illinois Compiled Statutes 5/29-5)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.