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President Signs Inflation Reduction Act Granting $3 Billion to Ports for Electrification Projects In

The U.S. House of Representatives passed the Inflation Reduction Act (H.R.5376), the budget reconciliation bill that includes $3 billion over five years to establish a new grant program to install electrified equipment and reduce emission at ports, as well as funding for ports seeking to purchase alternative-fueled cargo-handling equipment, shore power systems, microgrids for energy resiliency, electric grid infrastructure, and more. Of the $3 billion in funding, $750 million will be reserved for ports in non-attainment areas. The Environmental Protection Agency (EPA) will administer the grant program.



The Inflation Reduction Act contains other provisions ports can utilize, including availability of tax credits for clean energy production, including offshore wind and hydrogen energy; $60 million allocation to the Diesel Emissions Reduction Act (DERA) grant program, intended specifically for goods movement; $2.6 billion toward the National Oceanic and Atmospheric Administration (NOAA) for the protection of marine habitats and resilience for coastal communities from extreme storms; and $1 billion provided for the replacement of ‘class 6 or 7’ heavy-duty vehicles with zero-emission alternatives.

In addition to a letter to Congressional Leadership, AAPA has engaged with Congress in several ways urging them to include port electrification in the next reconciliation package. AAPA encourages members to reach out to their representatives and senators to thank them for passing this historic bill and forwarding the efforts toward American supply chain resiliency. The full text of the Inflation Reduction Act is available here and the port electrification section is on page 677.

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