Posted by: Francis Koster Published: June 10, 2024

Clean Heavy-Duty Vehicles Grant (July 25, 2024)

The U.S. Environmental Protection Agency has set aside over $900 million from the Inflation Reduction Act of 2022 (IRA) to assist in the replacement of non-zero-emission (non-ZE) heavy-duty motor vehicles with comparable but clean transportation.


The IRA created Section 132 of the Clean Air Act to encourage the sustainable deployment of a wide variety of ZE heavy-duty vehicles, thereby reducing air pollution and greenhouse gas emissions, especially in areas unable to meet EPA standards for criteria air pollutants.Vehicle replacements funded under this program will result in cleaner air and improved health for the communities in which they operate, the children and other passengers on the vehicles, and the drivers and maintenance staff who work closely on these vehicles.Eligible entities can apply for financial assistance to substitute ZE heavy-duty vehicles for current vehicles through one of two separate competitions conducted under this single funding announcement:

  • the School Bus Sub-Program is for applicants replacing school buses;
  • the Vocational Vehicles Sub-Program is for applicants replacing non-school bus, heavy-duty vehicles with a gross vehicle weight rating between of 19,500-33,000 pounds (Classes 6 and 7, as defined in 40 CFR 1037.801).


The EPA anticipates awarding approximately 70 percent of the total funding to the School Bus Sub-Program, and approximately 30 percent of the total funding to projects under the Vocational Vehicles Sub-Program. As required by Section 132, at least $400 million of the total funding for this program will be used to fund projects serving one or more communities in areas designated as in nonattainment with the National Ambient Air Quality Standards (NAAQS). The EPA sets NAAQS for six common air pollutants, including particulate matter (PM), photochemical oxidants (including ozone), carbon monoxide, sulfur oxides, nitrogen oxides, and lead. Nonattainment areas are areas of the country that do not meet these national air quality standards. Please visit the EPA Criteria Air Pollutants webpage for more information about the NAAQS.

Eligible Entities

Applications will be accepted from the following entities:

  • States,
  • Municipalities (Cities, towns, boroughs, counties, parishes, districts),
  • Other public bodies, such as School Districts created by or pursuant to State law.,
  • Indian Tribes, and
  • Nonprofit School Transportation Associations.
Eligible Activities

Funding accommodates a wide variety of vehicle types and vocations, including, but not limited to, school buses, refuse haulers, and utility and delivery trucks. The majority of these vehicles are non-ZE vehicles powered by internal combustion engines (ICE) that pre-date recent EPA emission standards.  These vehicles emit harmful pollutants like nitrogen oxide (NOx), fine particulate matter (PM2.5),
and greenhouse gases.

In addition, the EPA will prioritize funding for projects which address climate resilience, project sustainability, and workforce development.


Number:  approximately 40 to 160 grants

Amount$500,000 to $60 million per award.

Important Dates

Monday, July 8, 2024 Final Date to Submit Questions
Thursday, July 25, 2024 (11:59 PM, Eastern Time) NOFO Closes – Application Deadline
November, 2024 Anticipated Notification of Selection
December, 2024 Anticipated Awards

Next Steps

Applicants are encouraged to review the Questions and Answers document posted at the Clean Heavy-Duty Vehicles Program webpage for further clarification of this NOFO.

For additional guidance, applicants should review EPA’s Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements, EPA’s Subaward Policy, and EPA’s Subaward Policy Frequent Questions. The EPA expects recipients of funding to comply with competitive procurement contracting requirements in 2 CFR Parts 200 and 1500 as well as the EPA’s rule on Participation by Disadvantaged Business Enterprises in EPA Programs in 40 CFR Part 33. The Agency does not accept justifications for sole source contracts for services or products available in the commercial marketplace such as consulting, data analysis, or project management.

Application packages must be submitted electronically to the EPA through no later than Thursday, July 25, 2024, at 11:59 p.m. Eastern Time (ET) in order to be considered for funding.

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Francis P. Koster Ed.D.

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