Illinois EPA Announces $20 Million Notice of Funding Opportunity for Electric Class 4-8 Local Freight Trucks

SPRINGFIELD —Illinois Environmental Protection Agency (Illinois EPA) Acting Director James Jennings today announced a $20 million Notice of Funding Opportunity (NOFO) to replace existing on-road diesel Class 4-8 medium- and heavy-duty local freight trucks and Class 8 port drayage trucks with all-electric Class 4-8 trucks located and operated in the greater Chicagoland area. Illinois EPA will also fund a portion of new Level 2 or direct current fast charging (DCFC) equipment if charging infrastructure is needed. 

"Here in Illinois, we've made significant strides in protecting our environment and building a cleaner, more sustainable transportation sector. We've put electric school buses and transit buses on our roads and now we're bringing that same clean energy innovation to the trucks that power our economy," said Governor JB Pritzker. "Through the Volkswagen Settlement, this funding will help reduce emissions in communities disproportionately affected by air pollution by replacing diesel trucks with clean, electric trucks. I encourage all eligible entities to apply to this funding opportunity as we continue our commitment to cleaner energy and sustainable travel in every corner of the state."  

"Through the Volkswagen Settlement, Illinois EPA has prioritized the expansion of charging infrastructure in Illinois and the electrification of school buses, public transit buses, and now local freight and drayage trucks," said Acting Director Jennings. "Bringing clean all-electric trucks to the Chicago region, including areas that are disproportionately impacted by air pollution, will be a positive step in reducing emissions impacting so many communities."

Through this funding opportunity, Illinois EPA will fund projects in Priority Area 1 outlined in Illinois' BMP for the Volkswagen diesel emissions settlement and as specified in the NOFO:

Under this NOFO, applications may be submitted for up to ten eligible new all-electric trucks and any new charging infrastructure for the trucks. Applicants may include businesses or government entities located in the previously listed VW priority area; eligible trucks must also operate in the same priority area. Entities that lease their trucks are ineligible to apply. Both the existing diesel truck to be replaced and the proposed new all-electric trucks must be licensed to operate on public roadways. Eligible truck types include delivery/box trucks, waste haulers, Class 8 port drayage trucks, landscape trucks, dump trucks, and freight/transport trucks. Each existing diesel truck to be replaced must be engine Model Year 1992-2009, and each must be scrapped within 90 days of the new truck being placed into service. Complete requirements can be found within the specified NOFO.

Illinois EPA's BMP focuses the remaining VW allocation on electric transportation and infrastructure. The goals of the plan include reducing nitrogen oxide emissions in areas where the affected VW vehicles were registered. The BMP takes into consideration areas that do not meet federal air quality standards for ozone and bear a disproportionate share of the air pollution burden, including environmental justice areas.

The link to the Notice of Funding Opportunity is available at:  https://gata.illinois.gov/grants/csfa.html?page=Opportunity.aspx&nofo=3020. All required forms and information can be found on the Driving A Cleaner Illinois webpage:  https://epa.illinois.gov/topics/air-quality/driving-a-cleaner-illinois.html. Applications for the Driving a Cleaner Illinois - Volkswagen All-Electric Truck NOFO must be submitted by Friday, June 6, 2025 at 5:00 PM.

All applicants must pre-qualify through the Grant Accountability and Transparency Act Grantee Portal.