Search Federal and State Laws and Incentives

Congestion Mitigation and Air Quality (CMAQ) Improvement Program

The CMAQ Program provides funding to state departments of transportation (DOTs), 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, alternative fuel vehicles 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-designated nonattainment or maintenance area, and be a transportation project. For more information, see the Bipartisan Infrastructure Law CMAQ fact sheet and CMAQ Improvement Program website.

(Reference Public Law 117-58, Public Law 112-141, 23 U.S. Code 149, and 23 U.S. Code 151)

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 the U.S. Department of Energy'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)

Clean School Bus

The U.S. Environmental Protection Agency’s (EPA) 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. EPA may award up to 100% of the cost of the replacement bus, charging equipment, or fueling infrastructure. Alternative fuels include electricity, natural gas, hydrogen, or propane. Eligible applicants are school districts, state and local government programs, federally recognized Indian tribes, non-profit organizations, and eligible contractors. EPA will prioritize funding for high-need local education agencies; low income, rural and tribal schools; and, applications that cost share through public-private partnerships, grants from other entities, or school bonds. For more information, including funding availability, timeline, and application materials, see the EPA Clean School Bus website.

(Reference Public Law 117-58 and 42 U.S. Code 16091)

Public Transportation Research, Demonstration, and Deployment Funding

The U.S. Department of Transportation’s Federal Transit Administration administers the Public Transportation Innovation Program. 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. 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. For more information, see the Bipartisan Infrastructure Law Public Transportation Innovation fact sheet.

(Reference 49 U.S. Code 5312 and 5339, Public Law 114-94, Public Law 113-159, and Public Law 117-58)

National Alternative Fuels Corridors

The U.S. Department of Transportation Federal Highway Administration (FHWA) designates a national network of plug-in electric vehicle (EV) charging and hydrogen, propane, and natural gas fueling infrastructure along national highway system corridors. To designate these Alternative Fuel Corridors (AFC), FHWA solicits nominations from state and local officials and works with other federal officials and industry stakeholders.

FHWA must establish an AFC 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, 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 the 2022 Request for Nominations, state and local officials must submit nominations to FHWA by May 13, 2022. FHWA must update and redesignate corridors periodically thereafter. States are encouraged to complete EV AFCs, which are eligible for separate funding from the National Electric Vehicle Infrastructure (NEVI) Formula Program, and will be considered fully built out once they meet the conditions specified in the NEVI Formula Program Guidance.

For more information, see the FHWA Alternative Fuel Corridors website. (Reference Public Law 117-58, Public Law 114-94, and 23 U.S. Code 151)

Alternative Fuel Corridor (AFC) Grants

The U.S. Department of Transportation (DOT) must establish a competitive grant program to strategically deploy publicly accessible electric vehicle charging and hydrogen, propane, and natural gas fueling infrastructure along designated DOT Federal Highway Administration 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)

Electric Vehicle Supply Equipment (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)

Community Alternative Fuel Infrastructure Grants

The U.S. Department of Transportation (DOT) shall establish a competitive grant program to fill gaps in publicly accessible electric vehicle 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)

Truck Emissions Reduction Study and Grant at Port Facilities

The U.S. Department of Transportation (DOT), in consultation with the U.S. Department of Energy and U.S. Environmental Protection Agency, 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 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)

Port Infrastructure Development Program

The U.S. Department of Transportation (DOT) will establish the Port Infrastructure Development Program (PIDP) 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,
• Electric vehicle charging or hydrogen fueling infrastructure.

Funding is authorized through fiscal year 2026. Applications for the first funding round are due May 16, 2022. For more information, see the Notice of Funding Opportunity announcement and the PIDP website.

(Reference Public Law 117-58)

Carbon Reduction Program (CRP)

The U.S. Department of Transportation (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 alternative fuel vehicles, 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. For more information, see the CRP Implementation Guidance and Fact Sheet.

(Reference Public Law 117-58 and 23 U.S. Code 1)

Emerging Alternative Fuel Vehicle (AFV) Study

The U.S. Department of Transportation 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)

Federal System Alternative Funding Pilot

The U.S. Department of Transportation (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)

Truck Leasing Task Force

The Secretary of Transportation, in consultation with the Secretary of Labor, must establish the Truck Leasing Task Force (TLTF) 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. TLTF will terminate 30 days after submitting findings and recommendations to Congress. For more information, see the TLTF website. (Reference Public Law 117-58)

Electric Vehicle Working Group (EVWG)

The Secretaries of Transportation and Energy must jointly establish an EVWG to make recommendations regarding the development, adoption, and integration of light-, medium-, and heavy-duty electric vehicles (EVs) into the transportation and energy system of the United States. The EVWG 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 EVWG 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 EV charging station needs, manufacturing and battery costs, EV adoption for low- and moderate-income individuals and underserved communities, and EV charging station permitting and regulatory issues. The first report must be submitted within 18 months of the EVWG establishment, and the second and third reports each two years thereafter. Based on the EVWG 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 EV charging station 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 EVWG was established on June 8, 2022, and will terminate upon the submission of the third and final report. For more information, see the EVWG website.

(Reference Public Law 117-58)

Utility Electric Vehicle (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 electric vehicle supply equipment (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)

Electric Vehicle (EV) Studies

The U.S. Department of Energy (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)

Public School Energy Program

The U.S. Department of Energy (DOE) must establish for local educational agencies competitive grant program for energy improvements upgrades, including installation of alternative fuel vehicle (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. For more information, see the Grants for Energy Improvements at Public School Facilities website.

(Reference Public Law 117-58)

Low or Zero Emission Ferry Program

The U.S. Department of Transportation (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)

National Electric Vehicle Infrastructure (NEVI) Formula Program

The U.S. Department of Transportation’s (DOT) Federal Highway Administration (FHWA) NEVI Formula Program will provide funding to states to strategically deploy electric vehicle (EV) charging stations 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 EV charging stations to facilitate data collection, access, and reliability;
• Proper operation and maintenance of EV charging stations; and,
• Long-term EV charging station data sharing.

EV charging stations 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 Alternative Fuel Corridors (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 EV charging station installation.

FHWA must distribute the NEVI Program Formula Program funds made available each fiscal year (FY) through FY 2026, so that each state receives an amount equal to the state FHWA funding formula determined by 23 U.S. Code 104. To receive funding, states must submit plans to the DOT and U.S. Department of Energy (DOE) Joint Office for review and public posting by August 1, 2022, describing how the state intends to distribute NEVI funds. The FHWA will approve state plans on a rolling basis, and no later than September 30, 2022. FHWA announced approval of all state plans on September 27, 2022.

Additionally, DOT will establish a grant program by November 15, 2022, for states and localities requiring additional assistance to strategically deploy EV charging stations under this Program. Additional funding eligibility and considerations will apply.

For additional information, see the FHWA NEVI website and the Joint Office website.

(Reference Public Law 117-58 and 23 U.S. Code 165)

National Multimodal Cooperative Freight Research Program

The U.S. Department of Transportation (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)

Joint Office of Energy and Transportation

The U.S. Department of Transportation (DOT) and the U.S. Department of Energy (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 electric vehicle supply equipment (EVSE) and hydrogen fueling infrastructure, vehicle-to-grid integration, and related programs and policies;
• Data sharing of installation, maintenance, and utilization 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 electric vehicle (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. For more information, see the Joint Office website.

(Reference Public Law 117-58)

Low and Zero Emission Public Transportation Funding

The Department of Transportation’s Federal Transit Administration (FTA) administers the Low or No Emission Grant (Low-No) Program. Financial assistance is available to local and state government entities for the purchase or lease of low-emission or zero-emission transit buses, in addition to the acquisition, construction, or lease of supporting facilities. 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.

Bus and Bus Facilities Grants

The U.S. Department of Transportation’s Federal Transit Administration (FTA) administers the Grants for Buses and Bus Facilities Competitive Program. Eligible applicants include state, local, and tribal governments, fixed-route bus operators, and private nonprofit organizations engaged in public transportation. Funds may be used to replace, rehabilitate, and purchase buses, vans, and related equipment, and to construct associated bus facilities. The Bus and Bus Facilities Program is a competitive grant program. For more information, including funding availability and timelines, see the FTA Bus and Bus Facilities website.

(Reference Public Laws 117-58, 113-159, and 114-94 and 49 U.S. Code 5312 and 5339)

Regional Clean Hydrogen Hubs

The U.S. Department of Energy (DOE) administers the Regional Clean Hydrogen Hubs (H2Hubs) program. H2Hubs will fund the development of at least four regional networks of hydrogen producers, potential hydrogen consumers, and connective infrastructure located in close proximity. At least one H2Hub must demonstrate the end-use of hydrogen in the transportation sector. Clean hydrogen is defined as hydrogen produced with a carbon intensity equal to or less than 2 kilograms of carbon dioxide-equivalent produced at the site of production per kilogram of hydrogen produced. DOE will evaluate lifecycle emissions for each project application and give preference to applications that reduce greenhouse gas emissions across the full project lifecycle. For more information, including funding availability, see the Regional Clean Hydrogen Hubs website.

(Reference Public Law 117-58)