EPA makes $1 billion in grants available for clean heavy-duty vehicles, including transit buses

The U.S. Environmental Protection Agency (EPA) is working to address harmful emissions caused by heavy-duty vehicles by launching a new program to support the replacement of Class 6 and 7 heavy duty vehicles (which includes some transit vehicles) with zero-emission vehicles. Funding through the EPA’s Clean Heavy-Duty Vehicles Grant Program has been made available through the Inflation Reduction Act of 2022, which provided $1 billion to support the transition.

The EPA will award competitive grants for projects that will work to reduce heavy-duty vehicles pollution, support good-paying jobs and improve air quality for communities across the country, particularly those overburdened by air pollution.

Eligible applicants include states, including U.S. territories; municipalities and Tribes.

To meet the needs of diverse potential recipients and encourage participation in this grant opportunity, EPA is providing two separate sub-program competitions under the single Notice of Funding Opportunity (NOFO):

• The School Bus Sub-Program for applicants replacing school buses
• The Vocational Vehicles Sub-Program for applicants replacing non-school bus Class 6 and 7 vehicles – including box trucks, refuse haulers, dump trucks, street sweepers, delivery trucks, bucket trucks and utility trucks

EPA anticipates approximately 70 percent of available funding will be for projects under the School Bus Sub-Program and approximately 30 percent of available funding will be for projects under the Vocational Vehicles Sub-Program.

EPA anticipates awarding at least 15 grants to eligible applicants from Tribes and territories. Additionally, the Inflation Reduction Act statute requires that at least $400 million of the program’s funding go to projects that will serve one or more communities dealing with significant pollution as defined by EPA’s National Ambient Air Quality Standards.

“President Biden and his entire administration are working to ensure every community can breathe clean air. EPA’s Clean Heavy-Duty Vehicles Grant Program will slash climate and air pollution and enhance the country’s infrastructure by funding the deployment of zero-emissions vehicles and installation of supporting infrastructure,” said EPA Administrator Michael S. Regan. “The program’s historic investment in zero-emission vehicles will secure our nation’s position as a global leader in clean technologies that address the impacts of climate change.”

The EPA, which anticipates awarding up to $932 million under the NOFO, aims to provide cleaner air and benefit communities across the United States, especially those disproportionately burdened by air pollution and marginalized by underinvestment.

Funding may also be used for:

• Zero-emission vehicle refueling infrastructure
• Workforce development and training
• Project implementation costs

Applications are due by July 25, 2024.