102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2940

 

Introduced 10/19/2021, by Sen. Thomas Cullerton

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 627/45
415 ILCS 120/10

    Amends the Electric Vehicle Act and the Electric Vehicle Rebate Act. Deletes language providing that "electric vehicle" does not include electric motorcycles. Effective immediately.


LRB102 20854 LNS 29735 b

 

 

A BILL FOR

 

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1    AN ACT concerning electric vehicles.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Electric Vehicle Act is amended by changing
5Section 45 as follows:
 
6    (20 ILCS 627/45)
7    Sec. 45. Beneficial electrification.
8    (a) It is the intent of the General Assembly to decrease
9reliance on fossil fuels, reduce pollution from the
10transportation sector, increase access to electrification for
11all consumers, and ensure that electric vehicle adoption and
12increased electricity usage and demand do not place
13significant additional burdens on the electric system and
14create benefits for Illinois residents.
15        (1) Illinois should increase the adoption of electric
16    vehicles in the State to 1,000,000 by 2030.
17        (2) Illinois should strive to be the best state in the
18    nation in which to drive and manufacture electric
19    vehicles.
20        (3) Widespread adoption of electric vehicles is
21    necessary to electrify the transportation sector,
22    diversify the transportation fuel mix, drive economic
23    development, and protect air quality.

 

 

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1        (4) Accelerating the adoption of electric vehicles
2    will drive the decarbonization of Illinois' transportation
3    sector.
4        (5) Expanded infrastructure investment will help
5    Illinois more rapidly decarbonize the transportation
6    sector.
7        (6) Statewide adoption of electric vehicles requires
8    increasing access to electrification for all consumers.
9        (7) Widespread adoption of electric vehicles requires
10    increasing public access to charging equipment throughout
11    Illinois, especially in low-income and environmental
12    justice communities, where levels of air pollution burden
13    tend to be higher.
14        (8) Widespread adoption of electric vehicles and
15    charging equipment has the potential to provide customers
16    with fuel cost savings and electric utility customers with
17    cost-saving benefits.
18        (9) Widespread adoption of electric vehicles can
19    improve an electric utility's electric system efficiency
20    and operational flexibility, including the ability of the
21    electric utility to integrate renewable energy resources
22    and make use of off-peak generation resources that support
23    the operation of charging equipment.
24        (10) Widespread adoption of electric vehicles should
25    stimulate innovation, competition, and increased choices
26    in charging equipment and networks and should also attract

 

 

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1    private capital investments and create high-quality jobs
2    in Illinois.
3    (b) As used in this Section:
4    "Agency" means the Environmental Protection Agency.
5    "Beneficial electrification programs" means programs that
6lower carbon dioxide emissions, replace fossil fuel use,
7create cost savings, improve electric grid operations, reduce
8increases to peak demand, improve electric usage load shape,
9and align electric usage with times of renewable generation.
10All beneficial electrification programs shall provide for
11incentives such that customers are induced to use electricity
12at times of low overall system usage or at times when
13generation from renewable energy sources is high. "Beneficial
14electrification programs" include a portfolio of the
15following:
16        (1) time-of-use electric rates;
17        (2) hourly pricing electric rates;
18        (3) optimized charging programs or programs that
19    encourage charging at times beneficial to the electric
20    grid;
21        (4) optional demand-response programs specifically
22    related to electrification efforts;
23        (5) incentives for electrification and associated
24    infrastructure tied to using electricity at off-peak
25    times;
26        (6) incentives for electrification and associated

 

 

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1    infrastructure targeted to medium-duty and heavy-duty
2    vehicles used by transit agencies;
3        (7) incentives for electrification and associated
4    infrastructure targeted to school buses;
5        (8) incentives for electrification and associated
6    infrastructure for medium-duty and heavy-duty government
7    and private fleet vehicles;
8        (9) low-income programs that provide access to
9    electric vehicles for communities where car ownership or
10    new car ownership is not common;
11        (10) incentives for electrification in eligible
12    communities;
13        (11) incentives or programs to enable quicker adoption
14    of electric vehicles by developing public charging
15    stations in dense areas, workplaces, and low-income
16    communities;
17        (12) incentives or programs to develop electric
18    vehicle infrastructure that minimizes range anxiety,
19    filling the gaps in deployment, particularly in rural
20    areas and along highway corridors;
21        (13) incentives to encourage the development of
22    electrification and renewable energy generation in close
23    proximity in order to reduce grid congestion;
24        (14) offer support to low-income communities who are
25    experiencing financial and accessibility barriers such
26    that electric vehicle ownership is not an option; and

 

 

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1        (15) other such programs as defined by the Commission.
2    "Black, indigenous, and people of color" or "BIPOC" means
3people who are members of the groups described in
4subparagraphs (a) through (e) of paragraph (A) of subsection
5(1) of Section 2 of the Business Enterprise for Minorities,
6Women, and Persons with Disabilities Act.
7    "Commission" means the Illinois Commerce Commission.
8    "Coordinator" means the Electric Vehicle Coordinator.
9    "Electric vehicle" means a vehicle that is exclusively
10powered by and refueled by electricity, must be plugged in to
11charge, and is licensed to drive on public roadways. "Electric
12vehicle" does not include electric motorcycles or hybrid
13electric vehicles and extended-range electric vehicles that
14are also equipped with conventional fueled propulsion or
15auxiliary engines.
16    "Electric vehicle charging station" means a station that
17delivers electricity from a source outside an electric vehicle
18into one or more electric vehicles.
19    "Environmental justice communities" means the definition
20of that term based on existing methodologies and findings,
21used and as may be updated by the Illinois Power Agency and its
22program administrator in the Illinois Solar for All Program.
23    "Equity investment eligible community" or "eligible
24community" means the geographic areas throughout Illinois
25which would most benefit from equitable investments by the
26State designed to combat discrimination and foster sustainable

 

 

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1economic growth. Specifically, "eligible community" means the
2following areas:
3        (1) areas where residents have been historically
4    excluded from economic opportunities, including
5    opportunities in the energy sector, as defined pursuant to
6    Section 10-40 of the Cannabis Regulation and Tax Act; and
7        (2) areas where residents have been historically
8    subject to disproportionate burdens of pollution,
9    including pollution from the energy sector, as established
10    by environmental justice communities as defined by the
11    Illinois Power Agency pursuant to Illinois Power Agency
12    Act, excluding any racial or ethnic indicators.
13    "Equity investment eligible person" or "eligible person"
14means the persons who would most benefit from equitable
15investments by the State designed to combat discrimination and
16foster sustainable economic growth. Specifically, "eligible
17person" means the following people:
18        (1) persons whose primary residence is in an equity
19    investment eligible community;
20        (2) persons who are graduates of or currently enrolled
21    in the foster care system; or
22        (3) persons who were formerly incarcerated.
23    "Low-income" means persons and families whose income does
24not exceed 80% of the state median income for the current State
25fiscal year as established by the U.S. Department of Health
26and Human Services.

 

 

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1    "Make-ready infrastructure" means the electrical and
2construction work necessary between the distribution circuit
3to the connection point of charging equipment.
4    "Optimized charging programs" mean programs whereby owners
5of electric vehicles can set their vehicles to be charged
6based on the electric system's current demand, retail or
7wholesale market rates, incentives, the carbon or other
8pollution intensity of the electric generation mix, the
9provision of grid services, efficient use of the electric
10grid, or the availability of clean energy generation.
11Optimized charging programs may be operated by utilities as
12well as third parties.
13    (c) The Commission shall initiate a workshop process no
14later than November 30, 2021 for the purpose of soliciting
15input on the design of beneficial electrification programs
16that the utility shall offer. The workshop shall be
17coordinated by the Staff of the Commission, or a facilitator
18retained by Staff, and shall be organized and facilitated in a
19manner that encourages representation from diverse
20stakeholders, including stakeholders representing
21environmental justice and low-income communities, and ensures
22equitable opportunities for participation, without requiring
23formal intervention or representation by an attorney.
24    The stakeholder workshop process shall take into
25consideration the benefits of electric vehicle adoption and
26barriers to adoption, including:

 

 

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1        (1) the benefit of lower bills for customers who do
2    not charge electric vehicles;
3        (2) benefits to the distribution system from electric
4    vehicle usage;
5        (3) the avoidance and reduction in capacity costs from
6    optimized charging and off-peak charging;
7        (4) energy price and cost reductions;
8        (5) environmental benefits, including greenhouse gas
9    emission and other pollution reductions;
10        (6) current barriers to mass-market adoption,
11    including cost of ownership and availability of charging
12    stations;
13        (7) current barriers to increasing access among
14    populations that have limited access to electric vehicle
15    ownership, communities significantly impacted by
16    transportation-related pollution, and market segments that
17    create disproportionate pollution impacts;
18        (8) benefits of and incentives for medium-duty and
19    heavy-duty fleet vehicle electrification;
20        (9) opportunities for eligible communities to benefit
21    from electrification;
22        (10) geographic areas and market segments that should
23    be prioritized for electrification infrastructure
24    investment.
25    The workshops shall consider barriers, incentives,
26enabling rate structures, and other opportunities for the bill

 

 

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1reduction and environmental benefits described in this
2subsection.
3    The workshop process shall conclude no later than February
428, 2022. Following the workshop, the Staff of the Commission,
5or the facilitator retained by the Staff, shall prepare and
6submit a report, no later than March 31, 2022, to the
7Commission that includes, but is not limited to,
8recommendations for transportation electrification investment
9or incentives in the following areas:
10        (i) publicly accessible Level 2 and fast-charging
11    stations, with a focus on bringing access to
12    transportation electrification in densely populated areas
13    and workplaces within eligible communities;
14        (ii) medium-duty and heavy-duty charging
15    infrastructure used by government and private fleet
16    vehicles that serve or travel through environmental
17    justice or eligible communities;
18        (iii) medium-duty and heavy-duty charging
19    infrastructure used in school bus operations, whether
20    private or public, that primarily serve governmental or
21    educational institutions, and also serve or travel through
22    environmental justice or eligible communities;
23        (iv) public transit medium-duty and heavy-duty
24    charging infrastructure, developed in consultation with
25    public transportation agencies; and
26        (v) publicly accessible Level 2 and fast-charging

 

 

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1    stations targeted to fill gaps in deployment, particularly
2    in rural areas and along State highway corridors.
3    The report must also identify the participants in the
4process, program designs proposed during the process,
5estimates of the costs and benefits of proposed programs, any
6material issues that remained unresolved at the conclusions of
7such process, and any recommendations for workshop process
8improvements. The report shall be used by the Commission to
9inform and evaluate the cost effectiveness and achievement of
10goals within the submitted Beneficial Electrification Plans.
11    (d) No later than July 1, 2022, electric utilities serving
12greater than 500,000 customers in the State shall file a
13Beneficial Electrification Plan with the Illinois Commerce
14Commission for programs that start no later than January 1,
152023. The plan shall take into consideration recommendations
16from the workshop report described in this Section. Within 45
17days after the filing of the Beneficial Electrification Plan,
18the Commission shall, with reasonable notice, open an
19investigation to consider whether the plan meets the
20objectives and contains the information required by this
21Section. The Commission shall determine if the proposed plan
22is cost-beneficial and in the public interest. When
23considering if the plan is in the public interest and
24determining appropriate levels of cost recovery for
25investments and expenditures related to programs proposed by
26an electric utility, the Commission shall consider whether the

 

 

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1investments and other expenditures are designed and reasonably
2expected to:
3        (1) maximize total energy cost savings and rate
4    reductions so that nonparticipants can benefit;
5        (2) address environmental justice interests by
6    ensuring there are significant opportunities for residents
7    and businesses in eligible communities to directly
8    participate in and benefit from beneficial electrification
9    programs;
10        (3) support at least a 40% investment of make-ready
11    infrastructure incentives to facilitate the rapid
12    deployment of charging equipment in or serving
13    environmental justice, low-income, and eligible
14    communities; however, nothing in this subsection is
15    intended to require a specific amount of spending in a
16    particular geographic area;
17        (4) support at least a 5% investment target in
18    electrifying medium-duty and heavy-duty school bus and
19    diesel public transportation vehicles located in or
20    serving environmental justice, low-income, and eligible
21    communities in order to provide those communities and
22    businesses with greater economic investment,
23    transportation opportunities, and a cleaner environment so
24    they can directly benefit from transportation
25    electrification efforts; however, nothing in this
26    subsection is intended to require a specific amount of

 

 

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1    spending in a particular geographic area;
2        (5) stimulate innovation, competition, private
3    investment, and increased consumer choices in electric
4    vehicle charging equipment and networks;
5        (6) contribute to the reduction of carbon emissions
6    and meeting air quality standards, including improving air
7    quality in eligible communities who disproportionately
8    suffer from emissions from the medium-duty and heavy-duty
9    transportation sector;
10        (7) support the efficient and cost-effective use of
11    the electric grid in a manner that supports electric
12    vehicle charging operations; and
13        (8) provide resources to support private investment in
14    charging equipment for uses in public and private charging
15    applications, including residential, multi-family, fleet,
16    transit, community, and corridor applications.
17    The plan shall be determined to be cost-beneficial if the
18total cost of beneficial electrification expenditures is less
19than the net present value of increased electricity costs
20(defined as marginal avoided energy, avoided capacity, and
21avoided transmission and distribution system costs) avoided by
22programs under the plan, the net present value of reductions
23in other customer energy costs, net revenue from all electric
24charging in the service territory, and the societal value of
25reduced carbon emissions and surface-level pollutants,
26particularly in environmental justice communities. The

 

 

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1calculation of costs and benefits should be based on net
2impacts, including the impact on customer rates.
3    The Commission shall approve, approve with modifications,
4or reject the plan within 270 days from the date of filing. The
5Commission may approve the plan if it finds that the plan will
6achieve the goals described in this Section and contains the
7information described in this Section. Proceedings under this
8Section shall proceed according to the rules provided by
9Article IX of the Public Utilities Act. Information contained
10in the approved plan shall be considered part of the record in
11any Commission proceeding under Section 16-107.6 of the Public
12Utilities Act, provided that a final order has not been
13entered prior to the initial filing date. The Beneficial
14Electrification Plan shall specifically address, at a minimum,
15the following:
16        (i) make-ready investments to facilitate the rapid
17    deployment of charging equipment throughout the State,
18    facilitate the electrification of public transit and other
19    vehicle fleets in the light-duty, medium-duty, and
20    heavy-duty sectors, and align with Agency-issued rebates
21    for charging equipment;
22        (ii) the development and implementation of beneficial
23    electrification programs, including time-of-use rates and
24    their benefit for electric vehicle users and for all
25    customers, optimized charging programs to achieve savings
26    identified, and new contracts and compensation for

 

 

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1    services in those programs, through signals that allow
2    electric vehicle charging to respond to local system
3    conditions, manage critical peak periods, serve as a
4    demand response or peak resource, and maximize renewable
5    energy use and integration into the grid;
6        (iii) optional commercial tariffs utilizing
7    alternatives to traditional demand-based rate structures
8    to facilitate charging for light duty, heavy duty, and
9    fleet electric vehicles;
10        (iv) financial and other challenges to electric
11    vehicle usage in low-income communities, and strategies
12    for overcoming those challenges, particularly in
13    communities and for people for whom car ownership is not
14    an option;
15        (v) methods of minimizing ratepayer impacts and
16    exempting or minimizing, to the extent possible,
17    low-income ratepayers from the costs associated with
18    facilitating the expansion of electric vehicle charging;
19        (vi) plans to increase access to Level 3 Public
20    Electric Vehicle Charging Infrastructure to serve vehicles
21    that need quicker charging times and vehicles of persons
22    who have no other access to charging infrastructure,
23    regardless of whether those projects participate in
24    optimized charging programs;
25        (vii) whether to establish charging standards for type
26    of plugs eligible for investment or incentive programs,

 

 

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1    and if so, what standards;
2        (viii) opportunities for coordination and cohesion
3    with electric vehicle and electric vehicle charging
4    equipment incentives established by any agency,
5    department, board, or commission of the State, any other
6    unit of government in the State, any national programs, or
7    any unit of the federal government;
8        (ix) ideas for the development of online tools,
9    applications, and data sharing that provide essential
10    information to those charging electric vehicles, and
11    enable an automated charging response to price signals,
12    emission signals, real-time renewable generation
13    production, and other Commission-approved or
14    customer-desired indicators of beneficial charging times;
15    and
16        (x) customer education, outreach, and incentive
17    programs that increase awareness of the programs and the
18    benefits of transportation electrification, including
19    direct outreach to eligible communities;
20    (e) Proceedings under this Section shall proceed according
21to the rules provided by Article IX of the Public Utilities
22Act. Information contained in the approved plan shall be
23considered part of the record in any Commission proceeding
24under Section 16-107.6 of the Public Utilities Act, provided
25that a final order has not been entered prior to the initial
26filing date.

 

 

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1    (f) The utility shall file an update to the plan on July 1,
22024 and every 3 years thereafter. This update shall describe
3transportation investments made during the prior plan period,
4investments planned for the following 24 months, and updates
5to the information required by this Section. Beginning with
6the first update, the utility shall develop the plan in
7conjunction with the distribution system planning process
8described in Section 16-105.17, including incorporation of
9stakeholder feedback from that process.
10    (g) Within 35 days after the utility files its report, the
11Commission shall, upon its own initiative, open an
12investigation regarding the utility's plan update to
13investigate whether the objectives described in this Section
14are being achieved. The Commission shall determine whether
15investment targets should be increased based on achievement of
16spending goals outlined in the Beneficial Electrification Plan
17and consistency with outcomes directed in the plan stakeholder
18workshop report. If the Commission finds, after notice and
19hearing, that the utility's plan is materially deficient, the
20Commission shall issue an order requiring the utility to
21devise a corrective action plan, subject to Commission
22approval, to bring the plan into compliance with the goals of
23this Section. The Commission's order shall be entered within
24270 days after the utility files its annual report. The
25contents of a plan filed under this Section shall be available
26for evidence in Commission proceedings. However, omission from

 

 

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1an approved plan shall not render any future utility
2expenditure to be considered unreasonable or imprudent. The
3Commission may, upon sufficient evidence, allow expenditures
4that were not part of any particular distribution plan. The
5Commission shall consider revenues from electric vehicles in
6the utility's service territory in evaluating the retail rate
7impact. The retail rate impact from the development of
8electric vehicle infrastructure shall not exceed 1% per year
9of the total annual revenue requirements of the utility.
10    (h) In meeting the requirements of this Section, the
11utility shall demonstrate efforts to increase the use of
12contractors and electric vehicle charging station installers
13that meet multiple workforce equity actions, including, but
14not limited to:
15        (1) the business is headquartered in or the person
16    resides in an eligible community;
17        (2) the business is majority owned by eligible person
18    or the contractor is an eligible person;
19        (3) the business or person is certified by another
20    municipal, State, federal, or other certification for
21    disadvantaged businesses;
22        (4) the business or person meets the eligibility
23    criteria for a certification program such as:
24            (A) certified under Section 2 of the Business
25        Enterprise for Minorities, Women, and Persons with
26        Disabilities Act;

 

 

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1            (B) certified by another municipal, State,
2        federal, or other certification for disadvantaged
3        businesses;
4            (C) submits an affidavit showing that the vendor
5        meets the eligibility criteria for a certification
6        program such as those in items (A) and (B); or
7            (D) if the vendor is a nonprofit, meets any of the
8        criteria in those in item (A), (B), or (C) with the
9        exception that the nonprofit is not required to meet
10        any criteria related to being a for-profit entity, or
11        is controlled by a board of directors that consists of
12        51% or greater individuals who are equity investment
13        eligible persons; or
14            (E) ensuring that program implementation
15        contractors and electric vehicle charging station
16        installers pay employees working on electric vehicle
17        charging installations at or above the prevailing wage
18        rate as published by the Department of Labor.
19    Utilities shall establish reporting procedures for vendors
20that ensure compliance with this subsection, but are
21structured to avoid, wherever possible, placing an undue
22administrative burden on vendors.
23    (i) Program data collection.
24        (1) In order to ensure that the benefits provided to
25    Illinois residents and business by the clean energy
26    economy are equitably distributed across the State, it is

 

 

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1    necessary to accurately measure the applicants and
2    recipients of this Program. The purpose of this paragraph
3    is to require the implementing utilities to collect all
4    data from Program applicants and beneficiaries to track
5    and improve equitable distribution of benefits across
6    Illinois communities. The further purpose is to measure
7    any potential impact of racial discrimination on the
8    distribution of benefits and provide the utilities the
9    information necessary to correct any discrimination
10    through methods consistent with State and federal law.
11        (2) The implementing utilities shall collect
12    demographic and geographic data for each applicant and
13    each person or business awarded benefits or contracts
14    under this Program.
15        (3) The implementing utilities shall collect the
16    following information from applicants and Program or
17    procurement beneficiaries where applicable:
18            (A) demographic information, including racial or
19        ethnic identity for real persons employed, contracted,
20        or subcontracted through the program;
21            (B) demographic information, including racial or
22        ethnic identity of business owners;
23            (C) geographic location of the residency of real
24        persons or geographic location of the headquarters for
25        businesses; and
26            (D) any other information necessary for the

 

 

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1        purpose of achieving the purpose of this paragraph.
2        (4) The utility shall publish, at least annually,
3    aggregated information on the demographics of program and
4    procurement applicants and beneficiaries. The utilities
5    shall protect personal and confidential business
6    information as necessary.
7        (5) The utilities shall conduct a regular review
8    process to confirm the accuracy of reported data.
9        (6) On a quarterly basis, utilities shall collect data
10    necessary to ensure compliance with this Section and shall
11    communicate progress toward compliance to program
12    implementation contractors and electric vehicle charging
13    station installation vendors.
14        (7) Utilities filing Beneficial Electrification Plans
15    under this Section shall report annually to the Illinois
16    Commerce Commission and the General Assembly on how
17    hiring, contracting, job training, and other practices
18    related to its Beneficial electrification programs enhance
19    the diversity of vendors working on such programs. These
20    reports must include data on vendor and employee
21    diversity.
22    (j) The provisions of this Section are severable under
23Section 1.31 of the Statute on Statutes.
24(Source: P.A. 102-662, eff. 9-15-21.)
 
25    Section 10. The Electric Vehicle Rebate Act is amended by

 

 

SB2940- 21 -LRB102 20854 LNS 29735 b

1changing Section 10 as follows:
 
2    (415 ILCS 120/10)
3    Sec. 10. Definitions. As used in this Act:
4    "Agency" means the Environmental Protection Agency.
5    "Covered Area" means the counties of Cook, DuPage, Kane,
6Lake, McHenry, and Will, the townships of Aux Sable and Goose
7Lake in Grundy County, and the township of Oswego in Kendall
8County.
9    "Electric vehicle" means a vehicle that is exclusively
10powered by and refueled by electricity, must be plugged in to
11charge, and is licensed to drive on public roadways. "Electric
12Vehicle" does not include electric motorcycles, or hybrid
13electric vehicles and extended-range electric vehicles that
14are also equipped with conventional fueled propulsion or
15auxiliary engines.
16    "Environmental justice community" has the same meaning,
17based on existing methodologies and findings, used and as may
18be updated by the Illinois Power Agency and its Program
19Administrator of the Illinois Solar for All Program.
20    "Low income" means persons and families whose income does
21not exceed 80% of the State median income for the current State
22fiscal year, as established by the United States Department of
23Health and Human Services.
24(Source: P.A. 102-662, eff. 9-15-21.)
 
25    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.