Infrastructure Investment and Jobs Act of 2021

Enacted November 15, 2021
The Infrastructure Investment and Jobs Act (IIJA) of 2021 (Public Law 117-58) continues the authorization of the national surface transportation legislation and appropriates $550 billion for new infrastructure investments. The IIJA supports a variety of alternative fuel vehicle (AFV) and advanced vehicle technologies through grant programs, studies, technology standards, loans, research and development, fleet funding, and other measures. IIJA includes provisions to increase investment in electric vehicle supply equipment (EVSE), alternative fuel infrastructure, electric vehicle (EV) batteries, electricity grid upgrades, and light-, medium-, and heavy-duty zero emission vehicles (ZEVs).

The table below provides a summary of the provisions related to alternative fuels and vehicles, air quality, fuel efficiency, emissions reductions, and other transportation topics. The table indicates the agency with jurisdiction, a timeline if provided, and resources for more information.

IIJA Summary Table
Reference Description
Section 11115
Congestion Mitigation and Air Quality (CMAQ) Improvement Program

The CMAQ Program provides funding to state departments of transportation, local governments, and transit agencies for projects and programs that help meet the requirements of the Clean Air Act by reducing mobile source emissions and regional congestion on transportation networks. Eligible activities include transit improvements, travel demand management strategies, congestion relief efforts (such as high occupancy vehicle lanes), diesel retrofit projects, AFVs and infrastructure, and medium- or heavy-duty zero emission vehicles and related charging equipment. Projects supported with CMAQ funds must demonstrate emissions reductions, be located in or benefit a U.S. Environmental Protection Agency (EPA) designated nonattainment or maintenance area, and be a transportation project. For more information, see the FAST Act CMAQ fact sheet and CMAQ Improvement Program website. (Reference Public Law 117-58, 23 U.S. Code 149, and 23 U.S. Code 151)

Section 11129
EVSE Standards

EVSE funded under provisions outlined in 23 U.S. Code will be treated as Federal-aid Highway Program projects. EVSE installed using these funds are restricted to those that implement non-proprietary charging connectors that meet applicable industry standards and allow for open access payment methods that are available to all members of the public to ensure secure, convenient, and equal access to the EVSE. (Reference Public Law 117-58 and 23 U.S. Code 109)

Section 11401
National Alternative Fuels Corridors (AFCs)

The U.S. Department of Transportation (DOT) Federal Highway Administration (FHWA) designates a national network of EV charging and hydrogen, propane, and natural gas fueling infrastructure along national highway system corridors. To designate these AFCs, FHWA solicits nominations from state and local officials and works with other federal officials and industry stakeholders. FHWA must update and redesignate the corridors by May 14, 2022, and periodically thereafter. FHWA must establish a grant program to award grants to eligible entities, by November 15, 2022. During the designation and redesignation process, in consultation with the U.S. Department of Energy (DOE), FHWA will issue a report identifying charging and fueling infrastructure, best practices and guidance for predictable infrastructure deployment, analyzing standardization needs for fuel providers and purchasers, and reestablishing the goal of achieving strategic deployment of fueling infrastructure in the designated corridors. For more information, see the FHWA AFCs website. (Reference Public Law 117-58, Public Law 114-94, and 23 U.S. Code 151)

Section 11401
AFC Grants

DOT must establish a competitive grant program to strategically deploy publicly accessible EV charging and hydrogen, propane, and natural gas fueling infrastructure along designated FHWA AFCs. The grant will provide funding for designated Corridor-Pending AFCs to install infrastructure to convert to Corridor-Ready AFCs, and for Corridor-Ready AFCs to install alternative fuel infrastructure to provide station redundancy and meet higher demand. Propane fueling infrastructure is limited to use by medium- and heavy-duty vehicles. Eligible entities include states, metropolitan planning organizations, local governments, political subdivisions, and tribal governments. Additional funding eligibility and considerations will apply. The grant program must be established by November 15, 2022. (Reference Public Law 117-58 and 23 U.S. Code 151)

Section 11401
Community Alternative Fuel Infrastructure Grants

DOT shall establish a competitive grant program to fill gaps in publicly accessible EV charging and hydrogen, propane, and natural gas fueling infrastructure in community locations, such as a parking facilities, public schools, public parks, or along public roads. Funding of up to 80% of project costs will be available for both development phase planning activities and the acquisition and installation of charging or alternative fueling infrastructure. Five percent of the grant fund awarded may be used for educational and community engagement activities to develop and implement education programs through partnerships with schools, community organizations, and vehicle dealerships to support the use of zero-emission vehicles and associated infrastructure. DOT must prioritize projects that expand access to charging and alternative fueling infrastructure within rural areas, low- and moderate-income neighborhoods, and communities with limited parking space or a high ratio of multi-unit dwellings to single-family homes. Eligible entities include states, metropolitan planning organizations, local governments, political subdivisions, and tribal governments. Additional funding eligibility and considerations will apply. (Reference Public Law 117-58 and 23 U.S. Code 151)

Section 11402
Truck Emissions Reduction Study and Grant at Port Facilities

DOT in consultation with DOE and EPA, must establish a program to reduce idling at port and intermodal port facilities. Under this program, the Secretary must study how ports and intermodal port transfer facilities would benefit from emissions reductions opportunities, including port operations electrification, and also study emerging technologies and strategies to reduce idling truck emissions.

DOT must then coordinate and provide grant funding to test, evaluate, and deploy projects to reduce idling truck emissions, including port electrification and efficiency improvements particularly from heavy-duty vehicles. Grant funding will be available for up to 80% of eligible project cost. Awards will be treated as Federal-aid Highway Program projects. Additional funding eligibility and considerations will apply.

DOT must submit a report detailing the status and effectiveness of the program, recommendations for workforce development and training opportunities with respect to port electrification, and policy recommendations, no later than one year after all funded projects are complete. (Reference Public Law 117-58 and 23 U.S. Code 1)

Section 11402
Port Infrastructure Development Program

DOT will establish the Port Infrastructure Development Program to fund projects that improve port resiliency to address sea-level rise, flooding, extreme weather events, earthquakes, and tsunami inundation, as well as projects that reduce or eliminate port-related criteria pollutant or greenhouse gas emissions. Funded projects may include:

  • Port electrification or electrification master planning;
  • Development of port or terminal micro-grids;
  • Worker training to support electrification technology; and,
  • EV charging or hydrogen fueling infrastructure.

Funding is authorized through fiscal year 2026. (Reference Public Law 117-58)

Section 11403
State Carbon Reduction Program

DOT must establish a carbon reduction formula program for states to reduce transportation emissions. Eligible state funding activities include truck stop electrification, diesel engine retrofits, vehicle-to-infrastructure communications equipment, public transportation, port electrification, and deployment of AFVs, including charging or fueling infrastructure and the purchase or lease of zero-emission vehicles.

Funding can also be used to support the development of state carbon reduction strategies, in consultation with designated metropolitan planning organizations, by November 15, 2023. At the request of a state, DOT must provide technical assistance in the development of the carbon reduction strategy. State projects will be treated as Federal-aid Highway Program projects. Additional funding eligibility and considerations will apply. (Reference Public Law 117-58 and 23 U.S. Code 1)

Section 11511
Emerging AFV Study

DOT must conduct an AFV study, focusing specifically on hydrogen, natural gas, or propane, that identifies:

  • Five-year AFV ownership forecasts;
  • AFV infrastructure siting locations, including a map, to support the forecasts;
  • Includes an evaluation and map that identifies concentrations of emerging AFVs to meet fueling infrastructure needs;
  • Barriers to deploying AFV infrastructure at the identified locations; and,
  • Additional maps and tools to allow states to compare and evaluate different AFV adoption and use scenarios.

The report must be made publicly available and submitted to Congress by November 15, 2022. (Reference Public Law 117-58)

Section 13002
Federal System Alternative Funding Pilot

DOT will establish a Federal System Funding Alternative Advisory Board (Board) to establish a pilot program to demonstrate a national motor vehicle per-mile user fee (Fee). The pilot program will test the design, acceptance, implementation, and financial sustainability of a Fee; address the need for additional revenue for surface transportation infrastructure and a Fee; and provide recommendations relating to the adoption and implementation of a Fee.

In carrying out the pilot program, DOT shall provide different methods that volunteer participants can choose from to track motor vehicle miles traveled and solicit volunteer participants from all 50 states, the District of Columbia and the Commonwealth of Puerto Rico. DOT shall test vehicle-miles-traveled collection tools, revenue collection methodologies, and public-awareness campaigns regarding the pilot program. DOT shall establish Fees for passenger motor vehicles, light trucks, and medium- and heavy-duty trucks. Amounts may vary between vehicle types and weight classes to reflect estimated impacts on infrastructure, safety, congestion, the environment, or other related social impacts.

DOT shall establish the Board by February 13, 2022, with Board findings relevant to implementing the Fee pilot program due to Congress one year later. DOT must report findings to Congress annually upon program commencement, with funding authorized through fiscal year 2026. (Reference Public Law 117-58)

Section 21204
National Multimodal Cooperative Freight Research Program

DOT will establish a national cooperative freight transportation research program (Program), administered in collaboration with the National Academy of Sciences (NAS). NAS will establish an advisory committee to recommend a national research agenda on improvements in the efficiency and resiliency of freight movement, including adapting to future trends such as zero-emissions transportation. NAS may award research contracts or grants under the Program.

DOT shall establish the Program by November 15, 2022, and publish annual reports describing the ongoing research and findings. Funding will be made available each fiscal year until November 15, 2026, and will remain available until expended for this Program. (Reference Public Law 117-58 and 49 U.S. Code 702)

Section 23009
Truck Leasing Task Force

The Secretary of Transportation, in consultation with the Secretary of Labor, must establish the Truck Leasing Task Force (Task Force) to examine common truck leasing arrangements, including specific agreements relating to the Ports of Los Angeles and Long Beach Clean Trucks Program and similar programs to decrease port operations emissions. The Task Force must be created by May 14, 2022, and will terminate 30 days after submitting findings and recommendations to Congress. (Reference Public Law 117-58)

Section 25006
EV Working Group

The Secretaries of Transportation and Energy must jointly establish an EV working group (Working Group) to make recommendations regarding the development, adoption, and integration of light-, medium-, and heavy-duty EVs into the transportation and energy system of the United States. The Working Group will be comprised of 25 members from federal agencies, the automotive industry, the energy industry, state and local governments, labor organizations, and the property development industry.

The Working Group will produce three reports describing the status of EV adoption, including barriers and opportunities to scale up EV adoption, and recommendations for EV issues including EVSE needs, manufacturing and battery costs, EV adoption for low- and moderate-income individuals and underserved communities, and EVSE permitting and regulatory issues. The first report must be submitted within 18 months of the Working Group establishment, and the second and third reports each two years thereafter. Based on the Working Group reports, the Secretaries of Transportation and Energy must jointly develop, maintain, and update an EV strategy that includes how the federal, state, and local governments, and industry can establish quantitative transportation electrification targets, overcome barriers, provide public EV education and awareness, identify areas of opportunity in research and development to lower EV cost and increase performance, and expand EVSE deployment.

The Secretaries and the Working Group will use existing federal resources such as the Alternative Fuels Data Center, the Energy Efficient Mobility Systems program, and the Clean Cities Coalition Network. The Working Group must be established by November 15, 2022, and will terminate upon the submission of the third and final report. (Reference Public Law 117-58)

Section 30007
Low and Zero Emission Public Transportation Research, Demonstration, and Deployment Funding

Financial assistance is available to local, state, and federal government entities; public transportation providers; private and non-profit organizations; and higher education institutions for research, demonstration, and deployment projects involving low or zero emission public transportation vehicles. Funding opportunities include the Public Transportation Innovation Program and the Low or No Emission (Low-No) Vehicle Program. Eligible vehicles must be designated for public transportation use and significantly reduce energy consumption or harmful emissions compared to a comparable standard or low emission vehicle.

Applicants must submit a zero-emission vehicle fleet transition plan to DOT's Federal Transit Administration that includes a utility partnership description and workforce development training. Funding is available through fiscal year 2026. For more information, see the FAST Act Section 5312 fact sheet and the MAP-21 website. (Reference Public Law 117-58, Public Law 113-159, Public Law 114-94, 49 U.S. Code 5312, and 49 U.S. Code 5339)

Section 40109
State Energy Program (SEP) Funding

The SEP provides grants to states to assist in designing, developing, and implementing renewable energy and energy efficiency programs, including programs to help reduce carbon emissions in the transportation sector by 2050 and accelerate the use of alternative transportation fuels for, and the electrification of, state government vehicles, fleet vehicles, taxis and ridesharing services, mass transit, school buses, ferries, and privately owned passenger and medium- and heavy-duty vehicles. Each state's energy office receives SEP funding and manages all SEP-funded projects. States may also receive project funding from technology programs in DOE's Office of Energy Efficiency and Renewable Energy (EERE) for SEP Special Projects. EERE distributes the funding through an annual competitive solicitation to state energy offices. SEP is authorized through fiscal year 2026. For more information, see the SEP website. (Reference Public Law 117-58 and 42 U.S. Code 6322 through 6325)

Section 40401
Advanced Technology Vehicle (ATV) and Alternative Fuel Infrastructure Manufacturing Incentives

Through DOE's ATV Manufacturing Loan Program, manufacturers may be eligible for direct loans for up to 30% of the cost of re-equipping, expanding, or establishing manufacturing facilities in the United States used to produce qualified ATVs, ATV components, or alternative fuel infrastructure, including associated hardware and software. Qualified ATVs are light-, medium-, and heavy-duty or ultra-efficient vehicles that meet specified federal emission standards and fuel economy requirements. Ultra-efficient vehicles are fully closed compartment vehicles, designed to carry at least two adult passengers, which achieve at least 75 miles per gallon while operating on gasoline or diesel fuel, as hybrid electric vehicles operating on gasoline or diesel fuel, or as fully electric vehicles. Qualified components must be designed for ATVs and installed for the purpose of meeting ATV performance requirements, as determined by DOE.

For more information, see DOE's Advanced Technology Vehicles Manufacturing Loan Program website and the Alternative Fuel Infrastructure fact sheet. (Reference Public Law 117-58 and 42 U.S. Code 17013)

Section 40431
Utility EV Promotion Measures

The Federal Energy Regulatory Commission requires each state to consider measures to promote greater transportation electrification, by amending rates to:

  • Promote affordable and equitable EV charging;
  • Improve customer experience with EV charging;
  • Accelerate third party investment in EVSE; and,
  • Recover marginal costs of electricity delivery to EVSE.

Each state regulatory authority and each nonregulated utility must commence consideration or set a hearing date for consideration no later than November 15, 2022, and must complete consideration and make a determination no later than November 15, 2024. States with existing EV rate standards are exempt. (Reference Public Law 117-58)

Section 40435 and 40436
EV Studies

DOE must conduct a study on the cradle-to-grave environmental impact of EVs. DOE, in coordination with the U.S. State Department and the U.S. Department of Commerce, must also study the impact of forced labor in China on the EV supply chain. Both studies must submit reports to Congress by March 15, 2022. (Reference Public Law 117-58)

Section 40541
Public School Energy Program

DOE must establish for local educational agencies competitive grant program for energy improvements upgrades, including installation of AFV fueling or charging infrastructure on school grounds and purchase or lease AFVs. AFV fueling or charging infrastructure can be exclusively for the school fleet or students, or open to the public. Eligible AFVs include school buses and school fleet vehicles. (Reference Public Law 117-58)

Section 71101
Clean School Bus

EPA's Clean School Bus program provides funding to eligible applicants for the replacement of existing school buses with clean, alternative fuel school buses or zero-emission school buses. Alternative fuels include natural gas, hydrogen, propane, or biofuels. Eligible applicants are school districts, state and local government programs, federally recognized Indian tribes, and non-profit organizations. EPA will prioritize funding for low income, rural and tribal schools. For more information, see the Clean School Bus Plan website. (Reference Public Law 117-58 and 42 U.S. Code 16091)

Section 71102
Low or Zero Emission Ferry Program

DOT must establish a pilot grant program for the purchase of electric or low-emitting ferries and the electrification of or other reduction of emissions from existing ferries. Low-emitting ferries must use an alternative fuel, such as methanol, natural gas, propane, hydrogen, and electricity. Awards must include a ferry service that serves the State with the largest number of Marine Highway System miles and a bi-state ferry service with an aging fleet. Funding is authorized through fiscal year 2026. (Reference Public Law 117-58)

Division J
Joint Office of Energy and Transportation

DOT and DOE will establish a Joint Office of Energy and Transportation (Joint Office) to study, plan, coordinate, and implement joint issues, including:

  • Technical assistance related to the deployment, operation, and maintenance of EVSE and hydrogen fueling infrastructure, vehicle to- grid integration, and related programs and policies;
  • Data sharing of installation, maintenance, and utilization in order to continue to inform the network build out of EVSE and hydrogen fueling infrastructure;
  • Performance of a national and regionalized study of EVSE and hydrogen fueling infrastructure needs and deployment factors, to support grants for community resilience and EV integration;
  • Development and deployment of training and certification programs;
  • Electric infrastructure and utility accommodation planning in transportation rights-of ways; and,
  • Research, strategies, and actions to reduce transportation-related emissions and mitigate the effects of climate change.

The Joint Office will create a public database that includes EVSE data maintained on the DOE Alternative Fuels Data Center's Alternative Fueling Station Locator and potential EVSE locations identified by eligible entities. (Reference Public Law 117-58)

Division J
National EV Formula Program

FHWA National EV Formula Program (Program) will provide funding to states to strategically deploy EVSE and to establish an interconnected network to facilitate data collection, access, and reliability. Funding is available for up to 80% of eligible project costs, including:

  • The acquisition, installation, and network connection of EVSE to facilitate data collection, access, and reliability;
  • Proper operation and maintenance of EVSE; and,
  • Long-term EVSE data sharing.

EVSE must be non-proprietary, allow for open-access payment methods, be publicly available or available to authorized commercial motor vehicle operators from more than one company, and be located along designated FHWA AFCs. If a state and DOT determine that all AFCs in the state have been fully developed, then the state can propose alternative public locations and roads for EVSE installation.

FHWA must distribute the funds made available each fiscal year (FY) through FY 2026, so that each state receives an amount equal to the state Federal Highway funding formula determined by 23 U.S. Code 104.To receive funding, states will be required to submit plans to DOT for review and public posting, describing how the state intends to distribute Program funds. DOT and DOE will develop state and locality guidance for plans by February 13, 2022, which will include the state plan deadline and additional considerations.

Additionally, DOT will establish a grant program by November 15, 2022, for states and localities requiring additional assistance to strategically deploy EVSE under this Program. Additional funding eligibility and considerations will apply. (Reference Public Law 117-58 and 23 U.S. Code 165)