Your Guide to the EPA’s Clean Heavy-Duty Vehicles Grant Program
$932 million in funding is available now to help electrify your district’s school bus fleet through the EPA’s 2024 Clean Heavy-Duty Vehicles Grant Program (CHDV).
The EPA’s Clean Heavy-Duty Vehicles Grant Program (CHDV) is Now Open!
The EPA opened the Clean Heavy-Duty Vehicles Grant Program (CHDV) on April 24th, 2024. The Clean Heavy Duty program is part of the bipartisan Inflation Reduction Act passed in 2022. The CHDV Program is a $932 million competitive grant program that provides school districts, municipalities, states, and tribes incentives for Class 6 and Class 7 zero-emission vehicles, including electric school buses (ESBs). Other Class 6 and Class 7 vehicles include (but are not limited to) refuse haulers, dump trucks, delivery trucks, utility trucks, bucket trucks, transit buses, and more.
The program is designed to cover the difference in cost between an electric vehicle and the equivalent diesel model, including charging infrastructure and associated installation costs. The Agency is targeting 70% of the $932 million to support school bus electrification with the remainder designated to support the other vehicle types. The EPA anticipates making awards across all regions of the country. They will dedicate $400 million of the funding to projects that will serve communities in areas dealing with significant air pollution (i.e., have air quality that is not in compliance with EPA’s national standards). Applications are due July 25, 2024.
Related EPA programs have been instrumental in helping public entities initiate their transition to electric:
“We were ecstatic to hear that we were a recipient of the Clean School Bus Rebates. We have been working towards this day for some time. It is great to see all that hard work that so many people have put in to make this a reality pay off. This will positively impact our school for years to come.”
— Andy Edmondson, Superintendent, Hardin County CUSD #1, IL
How Does the EPA Clean Heavy-Duty Vehicles Grant Program Work?
The CHDV Program is a competitive grant program funded through the Inflation Reduction Act that provides funding for Class 6 and Class 7 zero-emission vehicles, including electric school buses, refuse haulers, utility trucks, delivery trucks, and more.
Right now, $932 million in funding is available, with school bus incentive amounts covering the difference between diesel and electric, including infrastructure and installation costs. At least $400 million of the funding will be dedicated to projects serving communities in air quality nonattainment areas.
Image credit: RIZON
How can Highland Help
Strengthen Your Application With an Experienced Partner
Our mission is to make electric vehicles affordable and accessible for all communities. We’ve helped school districts secure over $210 million in grants & incentives, and we’re happy to share our expertise with you. Our dedicated team of incentive program experts are happy to help answer your questions, whether you choose to work with Highland or not.
Please email epa@highlandfleets.com to get in touch with our team.
Frequently Asked Questions
The CHDV Program was created as part of the Inflation Reduction Act and is designed to help public entities replace Class 6 and Class 7 diesel vehicles, including school buses, with electric vehicles.
$932 million in funding is available through a competitive grant process.
The Agency is targeting 70% of the $932 million to support school bus electrification, with the remainder designated to support the other vehicle types.
Yes. Class 6 and Class 7 vehicles are eligible to apply, including refuse haulers, dump trucks, delivery trucks, utility trucks, bucket trucks, and transit buses.
EPA has designed the program to approximately support the incremental cost between a new electric vehicle and the equivalent diesel model. The Agency has laid out by vehicle type, the percentage of the cost of the new vehicle and associated charging infrastructure that the funds will cover along with a maximum incentive figure.
Yes. EPA is only providing incremental funding between a new electric vehicle (and associated charging infrastructure) and the equivalent diesel model, so the applicant needs to provide some funding for the project. The required level varies by vehicle type.
States, municipalities, school districts, tribal communities, territories, and nonprofit school transportation associations can apply for funding.
Third party operators, like Highland, cannot apply directly to the program but can support your application in many ways, including: helping you plan and prepare a highly competitive application, working with you to navigate the federal submission process, and most importantly — partnering with you to design a high quality project and work with you to successfully implement it.
We encourage you to reach out to us at epa@highlandfleets.com if you have questions about the program or want assistance.
School bus sub-program participants must apply for at least 10 buses, while participants in the vocational vehicle sub-program must apply for a minimum of 3 vehicles.
$400 million of the program’s funding will go to projects that are in or serve nonattainment zones, which are areas of the country that do not meet EPA’s national air quality standards (See EPA’s site which allows you to look up attainment status). Further, as the Agency scores the applications, it will evaluate applications on their benefits to disadvantaged communities experiencing poor air quality.
Yes! CHDV awards may be combined (“stacked”) with other eligible public incentives where applicable. Such incentives may include, but are not limited to, the Inflation Reduction Act (IRA) Tax Credits, state incentive programs, and available utility “Make-Ready” programs. These awards, however, may not be combined with other federal grant/rebate funds like those from the EPA Clean School Bus Program.
Yes, funding applies to both vehicles and charging infrastructure.
The CHDV program will require high quality applications that involve a lot of effort. Application factors will include:
– Relevant project experience,
– Likelihood of project success,
– Ability to address workforce development, and
– Cost share.
The deadline to submit your application for the CHDV Program is July 25, 2024 at 11:59PM (ET). The EPA expects to notify selectees by November 2024 and award the grants by February 2025.
There are a few reasons to upgrade to electric now, rather than waiting.
Maximize Federal + State Funding
Incentives available for electrification are at an all time high and will fall over time. This Clean Heavy-Duty Vehicles Grant Program funding can be used in conjunction with state and local funding for electrifying medium-duty and heavy-duty trucks and buses. You have a unique opportunity today to maximize the amount of incentives you can receive for a project, which will allow you to lower your current total cost of vehicle ownership while beginning the transition to an electric fleet.
Early Adoption
Project planning, design, and implementation takes time and experience is built over time. Support your fleet operators by beginning your transition now so that they will be comfortable and experienced with electric commercial vehicle technology before it becomes the dominant choice.
Budget Certainty
With rising costs and inflation, locking in fixed long-term transportation contracts eliminates price volatility and stabilizes your budget.