Gov. Pritzker, Illinois EPA Announce $58 Million in Grant Funding for Electric Public Transit Buses
Pace and RTA/CTA to receive funding from Volkswagen settlement for new electric buses
February 7, 2025
MARKHAM- Today, Governor JB Pritzker joined the Illinois Environmental Protection Agency (EPA), as well as officials from Pace and the Regional Transportation Authority (RTA), to celebrate the award of two grants totaling $58 million (Pace, $27 million; RTA on behalf of CTA, $31 million). The funding will be used to purchase all-electric Class 8 public transit buses – replacing older, higher-emitting buses with 57 new, advanced technology, zero-emission buses (27 Pace buses and 30 CTA buses). The projects are funded through the State’s allocation from the Volkswagen (VW) Settlement.
“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 Governor 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.”
Grant awards cover 75% of the eligible cost per electric transit bus, with Pace providing $9 million, and the RTA funding $10 million toward the project, for a total investment of 77 million.
“Emissions from diesel powered transit buses negatively impact air quality in the communities they serve and the region as a whole,” said Illinois EPA 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.”
“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,” said Pace Chairman Rick Kwasneski. “We are grateful to the Governor’s leadership which ensures critical, clean energy initiatives move forward."
“It's refreshing to see how something that began as a challenge for Volkswagen has been turned into a positive force for change, furthering both our region’s and the state’s pollution reduction goals. This transformation underscores the real impact of investing in clean transportation solutions,” said Pace Executive Director Melinda Metzger.
“The Regional Transportation Authority is grateful to partner with the IEPA to invest in a future with improved transit service and cleaner air. This investment will improve service for CTA bus riders in the short term, and, in the long-term, help us lower greenhouse gas emissions. A transit system that is growing and thriving is one of our greatest tools in winning the fight against climate change,” said RTA Chair Kirk Dillard.
In total, Illinois EPA has funded 33 new electric transit buses for CTA from Volkswagen Settlement funding, amounting to $33 million to further improve air quality in the City of Chicago.
In July 2024, Governor Pritzker visited the Markham Pace campus with the Illinois Department of Transportation for a ribbon-cutting in celebration of the State’s commitment to expanded charging infrastructure. The contribution included $7.1M in Rebuild Illinois funding and an overall state commitment of around $34M. The funds were used to build expanded charging infrastructure, in support of the conversion to a new electrified Pace bus fleet.
“This investment will provide climate-friendly transit options that improve mobility and quality of life for people across the region,” said Acting Illinois Department of Transportation Secretary Gia Biagi. “Under Governor Pritzker’s leadership, we are working closely with our transit partners to make our entire transportation system safe, reliable, and green.”
Under the Pritzker Administration, Illinois EPA's Beneficiary Mitigation Plan focuses the State's 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 plan also 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.
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