Climate Pollution Reduction Grants

How the Climate Pollution Reduction Grants Program Impacts Transportation

Jane Marsh - October 3, 2024

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As the world faces the growing challenges of global warming, transportation stands out as a major contributor to greenhouse gas (GHG) emissions. In response, the Climate Pollution Reduction Grants (CPRG) program takes decisive action to tackle these pressing issues. This initiative actively works to minimize the sector’s growing environmental impact. 

Explore the dynamic impact of this vital funding source on the transport industry and how it is fueling the transition to a greener economy. 

What is the Climate Pollution Reduction Grants Program?

The CPRG program emerged from a growing recognition of the need to address climate change through targeted funding and support for innovative projects. Established under the Inflation Reduction Act, this program aims to allocate billions of dollars to state and local governments, native tribes and territories to drive climate action. 

Origin and Development

Initially funded with nearly $5 billion, the program represents a significant investment in climate change mitigation in energy, industry, transportation, agriculture, construction and waste management. The U.S. Environmental Protection Agency (EPA) administers these grants, working closely with various stakeholders committed to reducing GHG emissions.

Program Objectives 

The primary objectives of the Climate Pollution Reduction Grants Program include:

  • Reducing GHG emissions: By supporting projects that directly lower emissions from everyday activities.
  • Improving air quality: Enhancing public health by addressing pollutants that contribute to respiratory issues. 
  • Supporting economic growth: Creating green jobs and fostering economic opportunities in communities nationwide. 

Planning Phase

The first phase of the CPRG program awards $250 million to support recipients in planning and designing climate action strategies in the six key aforementioned sectors. All awardees received the funds in the fall of 2023 and must submit their detailed plans for tackling climate change between 2024 and 2025. 

Implementation Phase

During this phase, the EPA will award approximately $4.6 billion in competitive grant funding to implement the GHG emission mitigation measures outlined in the climate action plans. The EPA has already held two competitions for prospective grantees between 2023 and 2024 to determine the final awardees. 

CPRG Funding Impact on Transportation 

The transportation industry generates around 7.29 tons of greenhouse gases annually, second only to the energy sector as the most significant global emissions contributor. This makes it a prime candidate for the Climate Pollution Reduction Grants program, given the EPA’s imperative to provide clean air to the public. 

The transportation sector will receive $1.18 billion in CPRG funds from the EPA to pursue federal, state, tribal and territorial agendas to slash emissions from on-road and non-road sources. The funding provided will cover the following critical areas:

Electric Vehicle (EV) Infrastructure

The CPRG program allocates funds to expand EV charging infrastructure, making electric vehicles more accessible and practical for consumers and businesses. For instance, California recently received $500 million in grants to develop electric vehicle infrastructure and transition public transit systems to zero-emission. Illinois also received over $430 million in CPRG funding under phase 2 implementation to reduce 57 million tons of GHG emissions statewide over the next 25 years.

EVs have zero tailpipe emissions, which has several knock-on benefits for public health, especially for people living in high-pollution areas and clustered neighborhoods. A sustained decrease in environmental contamination from transport-related exhaust means improved breathing conditions for current and future generations. 

Non-Car Alternative Projects

The CPRG program also encourages investments in active non-car alternatives, such as public transit, biking and walking. This initiative helps communities decrease the number of single-occupancy vehicles on the road — expanding transportation options and reducing environmental pollution. 

Additionally, funding for community programs promoting active transportation—like bike-sharing initiatives and walkability assessments—can further encourage residents to choose these sustainable modes. By prioritizing these investments, the CPRG fosters a shift toward healthier, low-emission transportation choices that reduce reliance on personal vehicles.

Support for Sustainable Freight Solutions

Freight activities are responsible for 40% of carbon emissions from the transportation industry. Funding from the CPRG program will go a long way toward initiatives to decarbonize this sector through investments in cleaner technologies and practices. These initiatives span projects aimed at electrifying cargo handling equipment and ultimately transitioning to zero-emission trucks.

To that end, the Port of Los Angeles recently applied for a $412 million grant from the EPA to facilitate the deployment of over 400 zero-emission equipment. As the CPRG funds administrator, the EPA could tap into this resource to make this project happen — if approved, it would cut GHG emissions by nearly 41,500 tons. 

Complementing Other Transportation Funding Sources

Funds from CPRG can complement other initiatives to promote cleaner technologies and practices in the transport industry. By aligning with existing programs and policies, CPRG can amplify its impact and accelerate the transition to sustainable transportation. 

For example, CPRG funding can boost smart city initiatives, such as installing road sensors or developing apps that provide real-time data on public transit options. Investments can also cover infrastructure projects designed to expand routes to underserved areas.

The Federal Transit Administration’s Low or No Emission Vehicle program could also work in tandem with CPRG funding to modernize overall public transportation. This project empowers state and local governments to acquire zero-emission and low-emission transit vehicles and related facilities. 

In July 2024, the FTA recently announced the release of approximately $1.5 billion to support 117 emission-reduction projects across 47 states. This includes purchasing American-made buses, about 80% of which will feature modern technologies like battery-electric systems and hydrogen fuel cells. 

Together, these programs advance the Biden administration’s Justice40 Initiative, which seeks to allocate 40% of federal climate action benefits to underserved communities. These investments will help address decades of underinvestment in areas most ravaged by environmental pollution. 

The CPRG Program Will Drive Sustainable Transportation

The Climate Pollution Reduction Grants program represents a pivotal opportunity for transforming the transportation industry toward sustainability. By focusing on electric vehicle infrastructure, public transit enhancement and sustainable freight solutions, the CPRG can significantly reduce emissions associated with transportation while fostering economic growth. 

As these initiatives unfold, they will contribute massively to climate goals and improve urban mobility and quality of life across communities.

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About the author

Jane Marsh

Starting from an early age, Jane Marsh loved all animals and became a budding environmentalist. Now, Jane works as the Editor-in-Chief of Environment.co where she covers topics related to climate policy, renewable energy, the food industry, and more.