Section 60101 of the IRA amends the Clean Air Act to add a new Section 132. Section 132 appropriates $600 million to the Administrator of the Environmental Protection Agency (“EPA”) to award grants and rebates to states, municipalities, Indian tribes, and nonprofit transportation associations to expand their use of zero-emission vehicles. Specifically, grants and rebates issued under section 132 may be used to replace certain vehicles with zero-emission vehicles, purchase and maintain infrastructure to support zero-emission vehicles, develop and train the necessary workforce to support zero-emission vehicles, and engage in planning for the adoption and deployment of zero-emission vehicles. Section 132 also appropriates $400 million to the EPA Administrator to make awards for the replacement of vehicles that serve communities in air quality non-attainment areas. The appropriated funds will remain available until September 30, 2031.
Eligible Entities:
Current Status:
Section 60001 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) rescinded unobligated funds under this IRA provision.
Trump Administration Actions:
- Congress Passes Budget Bill, Rescinding Funds and Repealing IRA Programs and Tax Credits [07/03/2025]
- Senate Parliamentarian Advises Several Provisions in Republicans’ “One Big, Beautiful Bill” Are Not Permissible, Subject to Byrd Rule [06/19/2025]
- Senate Environment Committee Releases Budget Reconciliation Draft Text [06/16/2025]
- House Committee on Energy and Commerce Proposes IRA Rollbacks to EPA Programs [05/13/2025]
- Litigation Compliance Report Indicates EPA Intends to Terminate 781 IRA and IIJA Awards [04/23/2025]
- EPA Orders Employees to Stop Billing Hours to Climate, Infrastructure Laws [01/31/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
Section 60101 of the IRA appropriates a total of $1 billion to EPA – $600 million to award grants and rebates to states, municipalities, Indian tribes, and nonprofit transportation associations to expand their use of zero-emission vehicles and $400 million to make awards for the replacement of vehicles that serve communities in air quality nonattainment areas. The appropriated funds will remain available until September 30, 2031.
EPA has tentatively awarded nearly the full $1 billion but it needs finalization. In April 2024, EPA announced availability of the funds and noted two different sub-program competitions: the School Bus Sub-program for applicants seeking to replace school buses (which will receive approximately 70% of funding), and the Vocational Vehicles Sub-Program for applicants replacing non-school bus Class 6 and 7 vehicles such as box trucks, dump trucks, street sweepers, delivery trucks, refuse haulers, and more (which will receive approximately 30% of funding). Applications opened April 24, 2024 and closed July 25, 2024. In December 2024, EPA announced that it tentatively selected 70 awardees of $735 million across 27 states, 3 tribal nations, and one territory to purchase zero-emissions heavy-duty vehicles through the Clean Heavy-Duty Vehicles program. Awardees will be able to purchase over 2,400 clean vehicles and EPA “prioritized disadvantaged communities facing air quality challenges” and allocated $523 million of the funds to projects serving communities in areas in nonattainment with the NAAQS.
Biden Administration Actions:
- EPA Announces $735 Million in Funding for Clean Heavy-Duty Vehicles [12/11/2024]
- EPA Launches $932 Million Clean Heavy-Duty Vehicles Grant Program [04/24/2024]
- EPA Seeks Technical Input to Inform Development of Clean Ports and Clean Heavy-Duty Vehicle Programs [05/03/2023]
- White House Releases IRA Guidebook for Tribes [04/04/2023]
- EPA Region 8 Announces Webinar on Upcoming Grant Opportunities [03/07/2023]
- EPA Holds Listening Session on Clean Heavy-Duty Vehicle Program [12/13/2022]
- EPA Requests Comments on Transportation Programs [11/04/2022]