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Agency:
Environmental Protection Agency

IRA Section 60104 – Diesel Emissions Reductions Grants

Section 60104 of the IRA appropriates $60 million to the EPA Administrator to provide grants, rebates, and loans under the Energy Policy Act of 2005. Section 792 of the Energy Policy Act authorizes the EPA Administrator to provide funding to regional, state, local, and tribal agencies, nonprofit organizations, and private owners of diesel vehicles to reduce generation of, and exposure to, diesel emissions. The grants, rebates, and loans made under Section 60104 of the IRA must be used to identify and reduce diesel emissions related to goods movement in low-income and disadvantaged communities. The appropriated funds will remain available until September 30, 2031.

Eligible Entities:

State/Territorial Government, Local Government, Inter-state Agency, Native American/Indigenous Community, Non-profit Organization, Vehicle Owner/Seller/Purchaser

Environmental Justice Considerations:

Appropriated funds may only be used for projects that reduce diesel emissions in low-income and disadvantaged communities.

Current Status:

Funds Rescinded by Congress

Section 60003 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) rescinded unobligated funds under this IRA provision.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]
  • 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  • OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]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:

Not started

Section 60104 of the IRA appropriates $60 million to EPA to provide grants, rebates, and loans to owners of diesel vehicles to reduce generation of, and exposure to, diesel emissions to be used by September 30, 2031. As of January 2025, EPA has not awarded any of the funding under this provision. At stake: The total $60 million that has not been awarded.

Biden Administration Actions:

  • EPA Region 8 Announces Webinar on Upcoming Grant Opportunities [03/07/2023]
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