May 92023

U.S. EPA Opens Public Comment on Funding for Zero-Emission Vehicles and Charging Infrastructure Under Inflation Reduction Act

Samuel B. Boxerman, Peter Whitfield, Brittany A. Bolen and Marshall R. Morales
, , , ,

The U.S. Environmental Protection Agency (EPA) issued, on May 5, 2023, a request for information seeking input on the availability of zero-emission technologies in the heavy-duty vehicle and port sectors toward establishing funding programs under the Inflation Reduction Act (IRA). EPA requests comment from manufacturers, distributors, installers, fleet operators, and port operators about their products and experience with zero-emission technologies.

In particular, EPA is seeking information to assess the availability, performance, and pricing of domestically manufactured zero-emission trucks, zero-emission port equipment, electric charging, and other infrastructure needs for zero-emission technologies. EPA also requests information on the current and planned domestic manufacturing of these technologies.  The Build America Buy America Act generally requires various materials and components used in federally funded infrastructure projects to be produced domestically, but EPA may be able to issue waivers.

There are three key topics under the IRA relevant to this notice:

  • The Clean Heavy-Duty Vehicles (HDV) Program. EPA will award grants and rebates ($1 billion total) to support transitioning to zero-emission HDVs, including charging equipment and supporting activities. Recipients may be states, municipalities, American Indian tribes, or nonprofit school transportation associations. Funding may be used to help replace Class 6 or 7 HDVs with zero-emission vehicles or to install and maintain charging infrastructure as well as other supporting activities. Among the funds provided by the IRA, EPA must award $400 million to replace vehicles located in an area designated as nonattainment with any National Ambient Air Quality Standard (NAAQS).
  • Clean Ports Program. EPA will award grants and rebates ($3 billion total) to implement zero-emission port equipment or technology at ports and supporting activities. Recipients may be port authorities, a governmental agency with jurisdiction over a port, an air pollution control agency, or a private entity that applies in partnership with one of the named categories of public entities. Funding may be spent to support purchasing zero-emission port equipment or technology as well as that which captures 100% of emissions produced by an oceangoing vessel at berth. Among the funds provided by the IRA, EPA must award $750 million to ports located in an area designated as nonattainment with any NAAQS.
  • Charging and Fueling Infrastructure. Under both of the above programs, EPA is seeking information about domestic sourcing of charging and other fueling infrastructure. The programs EPA is creating will need to reflect the extent to which domestic sourcing is available now, or may be available soon, for charging and other relevant infrastructure.

U.S. companies engaged in manufacturing or import of zero-emission trucks, zero-emission port equipment, electric charging, and other infrastructure should evaluate commenting on the open docket and continuing engagement with EPA during the development of these funding programs. The docket for public comment is open on regulations.gov until June 5, 2023.

This post is as of the posting date stated above. Sidley Austin LLP assumes no duty to update this post or post about any subsequent developments having a bearing on this post.

Samuel B. Boxerman

Washington, D.C.

sboxerman@sidley.com

Peter Whitfield

Washington, D.C.

pwhitfield@sidley.com

Brittany A. Bolen

Washington, D.C.

bbolen@sidley.com

Marshall R. Morales

You might also like
EPA Appeals Dismissal of Suit Against eBay

On November 26, 2024, the United States, on behalf of the U.S. Environmental Protection Agency (EPA), appealed a district court decision dismissing the government’s claims that eBay violated the Clean Air Act (CAA), the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), and the Toxic Substances Control Act (TSCA).

EPA Publishes First-Of-Its-Kind Framework for Considering Cumulative Impacts Across Agency Actions

On November 21, 2024, the U.S. Environmental Protection Agency (EPA) published Notice of a newly developed draft framework intended to provide all EPA programs with a shared reference point for determining when and how to analyze or consider cumulative impacts—defined broadly to include the totality of exposures to combinations of environmental stressors and their effects on health and quality-of-life outcomes.  Keeping pace with the Biden administration EPA’s environmental justice drive, key goals of the Interim Framework for Advancing Consideration of Cumulative Impacts include empowering EPA to (1) more fully and accurately characterize the realities communities face, (2) pinpoint the levers of decision making and identify opportunities for interventions that improve health and quality of life while advancing equity, and (3) increase meaningful engagement, improve transparency, and center actions on improving health and environmental conditions in communities.

U.S. EPA Removes Regulatory Affirmative Defense Provision Against Alleged Violations of Oil and Gas Facility NESHAPs

On October 22, 2024, the U.S. Environmental Protection Agency (EPA) published a final rule removing an affirmative defense from Clean Air Act (CAA) National Emission Standards for Hazardous Air Pollutants (NESHAP) regulations for the Oil and Natural Gas Production Facility and Natural Gas Transmission and Storage Facility Source Categories (Final Rule).[1] Prior to the Final Rule, owners or operators could assert an affirmative defense that alleged NESHAP standard violations were caused by an equipment malfunction.[2] A “malfunction” is defined as any sudden, infrequent, and not reasonably preventable failure of air pollution control and monitoring equipment, process equipment, or a process to operate in a normal or usual manner.[3]