IL HB2801

Establishes measurement standards for alternative motor fuels: liquefied natural gas and propane are measured in diesel gallon equivalents (6.06 pounds of LNG or 6.41 pounds of propane), and compressed natural gas is measured in gasoline gallon equivalents (5.660 pounds).

Applies motor fuel tax rates to liquefied natural gas and propane at the diesel fuel rate plus 2.5 cents per gallon, effective January 1, 1990.

Adds liquefied natural gas to exemptions from the receiver's fuel tax and environmental impact fee when used by rail carriers for railroad operations and when used in ships/barges for interstate commerce.

Requires propane used as motor fuel to be sold in actual measured volumetric gallons, then multiplied by 0.651 to determine taxable diesel gallon equivalents.

Takes effect July 1, 2017, with related amendments to the Motor Fuel Tax Law, Weights and Measures Act, and Environmental Impact Fee Law.