• Subscribe
  • Magazine
  • 40 Under 40
  • Supplier's Directory
  • Advertise
  • Contact Us
    1. Bus
    2. Vehicles
    3. Hybrid, Hydrogen & Electric Vehicles

    Illinois EPA announces over $58 million in grant funding to Pace, Chicago RTA

    Feb. 10, 2025
    The Driving a Cleaner Illinois – Volkswagen award is the largest grant to date from the Illinois Environmental Protection Agency.
    Related To: Pace Suburban Bus
    Pace
    officials stand with giant plug in in front of Pace electric bus
    IEPA representatives, elected officials and other stakeholders celebrated the funding awards at Pace’s Markham Campus Bus Acceptance Facility.

    Pace Suburban Bus (Pace) was awarded $27 million to purchase electric buses and the Regional Transportation Authority (RTA) was awarded $31.25 million for the Chicago Transit Authority (CTA) through the Volkswagen grant program, Driving a Cleaner Illinois. 

    The Illinois Environmental Protection Agency (IEPA) representatives, elected officials and other stakeholders celebrated the funding awards at Pace’s new Markham Campus Bus Acceptance Facility. According to Pace, this round of funding to the RTA region is the largest grants IEPA has announced to date; the previous high was $14 million.  

    “Illinoisans of all backgrounds depend on Pace and the CTA. Whether commuting to work, visiting friends and family, or running their everyday errands — the convenience and efficiency of these systems is absolutely essential to their everyday lives,” said Illinois Gov. JB Pritzker. “Pace has added 27 new, fully electric buses – along with 30 that will join the CTA fleet. This is an investment that will help us meet our climate goals, create opportunity for our people and further connect our communities. Electric buses are vital to the future of transit — clean, reliable and convenient — and I’m excited to be taking a step toward that future today.” 

    Pace will provide a $9 million match and the RTA will provide a $10.42 million match to the IEPA awards. Pace will purchase 27 battery-electric buses (BEBs), and the Chicago Transit Authority (CTA) will purchase 30 electric transit buses to replace the oldest diesel buses in their fleets. 

    “By transitioning to a zero-emissions fleet, our region’s public transportation system aims to significantly reduce harmful pollutants, contributing to healthier communities and a greener future,” said Pace Chairman Rick Kwasneski. “Public transit is more than just buses — it’s about connecting people to jobs, schools, healthcare and opportunity, and being a good steward of our environment. We are grateful to the governor’s leadership, which ensures critical, clean energy initiatives move forward." 

    RTA Board Chair Kirk Dillard added, “Transit is the strongest tool we have in the fight against climate change, and we are grateful for the partnership of the IEPA in leading that fight. This investment will improve service and provide cleaner air for Pace and CTA riders in the short term and in the long-term, helping us lower greenhouse gas emissions. 

    “RTA is committed to leading regional grant applications in the future to advance key transit capital priorities for our region,” Dillard continued. “This award from IEPA takes us another step further in meeting our regional commitment of reaching a zero-emissions bus fleet by 2040.” 

    Driving a Cleaner Illinois is the IEPA’s grant program developed to distribute funding for various types of mobile source electrification projects. The program implements funding from a variety of sources, including the Climate and Equitable Jobs Act, the Volkswagen Environmental Mitigation Trust and U.S. Environmental Protection Agency’s Diesel Emission Reduction Act (DERA) Program. 

    Grant awards from IEPA to RTA and Pace will be incorporated into the RTA 5-Year Regional Capital Program later this year and future service board bus purchasing plans will incorporate these grants to receive new electric buses in the near future. 

    “We are grateful to the IEPA and RTA for helping CTA to advance our goal of converting to an all-electric bus fleet — a complex and challenging undertaking that includes replacing 1,800 buses and making the upgrades and capital investments necessary to support them,” said Acting CTA President Nora Leerhsen. “These grant funds will make a significant contribution towards a greener future for CTA as we move ahead with Charging Forward: CTA’s Bus Electrification Planning Report — the first-ever roadmap for the full electrification of our entire bus fleet.” 

    The IEPA has been designated as the lead agency to administer funds allocated to Illinois from the Volkswagen Environmental Mitigation Trust. Illinois’ initial allocation of funds is approximately $108 million to be used to fund mobile source diesel emission reduction projects. The funds are to be used for projects that reduce emissions of nitrogen oxides in Illinois. 

    “Emissions from diesel powered transit buses negatively impact air quality in the communities they serve and the region as a whole,” said IEPA Acting Director James Jennings. “Through the VW settlement funding and additional cost-sharing commitments from both Pace and RTA/CTA, these projects represent a $77 million investment in clean transportation that will benefit communities throughout the Chicago area.”