On April 24, 2024, the U.S. Environmental Protection Agency (EPA) announced the Clean Heavy-Duty Vehicles Grant Program: a one-billion-dollar program to replace polluting heavy-duty vehicles with zero-emission vehicles (ZEVs) and deploy the associated infrastructure. This program is designed to assist in the nation’s transition to ZEVs, reduce air pollution, and create well-paying clean energy jobs.
Here are the EC’s top ten takeaways from the notice of funding opportunity:
- Breakdown of funding: This funding is focused on replacing class 6 or 7 heavy-duty vehicles with ZEVs. The funding is composed of two programs: the school bus sub-program, which will receive 70% of the funding; and the vocational vehicles sub-program, which will receive 30% of the funding.
- Amount awarded: $932 million, which the EPA anticipates being distributed to 40-160 awardees with projects ranging from $500,000 to $60 million per award. The period of performance is up to 24 months, with an estimated start date of January 2025. Non-federal funding may be used as cost share, but the EPA reserves the right to offer partial funding to support phases of proposed projects.
- Eligible applicants and deadlines: States, municipalities, Tribes, and nonprofit school transportation associations are all eligible applicants, and must submit application materials by Thursday, July 25 at 11:59 p.m. ET. Applicants applying for both school buses and vocational vehicles must submit separate applications.
- Eligible activities: Replacing existing internal combustion engine school buses and other class 6 or 7 vehicles with zero-emission alternatives; purchasing, installing, operating, and maintaining the infrastructure needed to charge, fuel, or maintain ZEVs; and workforce development and training to support the maintenance, charging, fueling, and operation of ZEVs are all eligible activities.
- Selection priorities: The EPA is prioritizing applications that address climate resilience (projects that assess and implement adaptation considerations), project sustainability (projects that demonstrate sustainable results/benefits), and workforce development (projects that plan to prepare the workforce, protect and prevent existing workers for being displaced, and incorporate worker voices).
- Engagement and collaboration requirements: Subrecipients and partners are allowed and must include a letter of commitment if the partner is providing cost share. Vehicle minimums apply for the school bus program (a minimum of ten zero-emission school buses) and for the vocational program (a minimum of three zero-emission vocational vehicles). Tribal entities are exempt from minimum requirements.
- Set-asides: $400 million will be set aside for projects serving communities designated as nonattainment by the National Ambient Air Quality Standards (NAAQS), and 15 additional grant awards will be set aside for Tribes and territories across both sub-programs.
- Defined outputs and objectives: Applicants must include specific statements describing the environmental results of their proposed project in terms of well-defined outputs (number of vehicles replaced, number and type of chargers installed, workforce plans created, etc.) and, to the maximum extent practicable, well-defined outcomes (improved air quality, expansion of charging network, etc.) that will demonstrate how the project will contribute to the EPA Strategic Plan goals.
- Eligible vehicle replacement: Vehicles must be class 6 or 7, with a gross vehicle weight rating (GVWR) of 19,501–33,000 pounds, and must be fully operational at the time of application submission. Usage requirements apply.
- Next steps: Reach out to the EC with questions or request assistance at infrastructure@electrificationcoalition.org.