Source: League Business Leaders Network Member Saul Ewing Arnstein & Lehr LLP
Two federal programs administered by the United States Environmental Protection Agency (the “EPA”) provide financial assistance in the form of grants and rebates to public and non-profit entities seeking to replace their existing buses and trucks into clean vehicles. The most recent program was created by the Inflation Reduction Act of 2022 (the “IRA”), which appropriated $1 billion to fund a grant and rebate program for states, municipalities, Indian tribal governments, and nonprofit school transportation associations to help them acquire, charge, and maintain zero-emission heavy-duty vehicles in replacement of their existing fleet. The other program, the Clean School Bus Program, has been in existence since 2005, but was amended and expanded by the Infrastructure Investment and Jobs Act of 2021 (the “IIJA”),which appropriated $5 billion for the EPA to offer rebates to replace existing school buses with clean and zero-emission models. Both programs also set certain priorities: the IRA sets aside 40 percent of the funds under its program for regions particularly impacted by air pollution, and the IIJA allows the EPA to prioritize rural, tribal, and low-income school districts in the selection process and the funding amounts.
What You Need to Know:
- Two federal programs are offering funding solutions for public and nonprofit entities seeking to replace their trucks and buses with electric models.
- The Inflation Reduction Act of 2022 appropriated $1 billion to help public and nonprofit entities convert their trucks and bus fleet to electric vehicles, with a focus on zones particularly affected by air pollution.
- The Infrastructure Investment and Jobs Act of 2021 appropriated $5 billion to provide grants to schools to pay for the costs of replacing school buses with clean and zero-emission models.