EPA awards $144M in grants to California to phase out diesel-powered trucks

The Environmental Protection Agency is awarding $144 million in grants to fund 13 projects in California to help the state wean off fossil fuels and phase out big rigs that run on diesel.

The money will go to the state transportation department, cities and school districts, among others, to purchase some 480 zero-emission vehicles to replace diesel-powered trucks, school buses and other large vehicles. It is part of an EPA program that provides a total of $735 million to 70 projects across the country, officials announced Wednesday.

The grants are paid for by the 2022 climate law approved by Congressional Democrats. The law, officially known as the Inflation Reduction Act, includes nearly $400 billion in spending and tax credits to accelerate the expansion of clean energy such as wind and solar power, speeding the nation’s transition away from the oil, coal and natural gas that largely causes climate change. The funds, to be delivered in early 2025, “will reduce air pollution, improve health outcomes in nearby communities, and advance the campaign to tackle climate change,” EPA Pacific Southwest Regional Administrator Martha Guzman said in a statement.

California and local agencies will have the next two to three years to implement the grants for zero-emission trucks.

SpaceX valuation jumps to about $350B

SpaceX and its investors have agreed to purchase as much as $1.25 billion of insider shares in a transaction valuing Elon Musk’s rocket and satellite maker at about $350 billion, according to an internal email seen by Bloomberg.

The per-share price of $185 is up substantially from the $112 set in a prior valuation less than three months ago, said the memo. SpaceX alone is offering to purchase as much as $500 million worth of common stock, it said.

The staggering valuation, which confirmed a Bloomberg report from last week, cements SpaceX’s status as the most valuable private startup in the world, with a market capitalization rivaling some of the largest public companies. It reflects the post-election gains across the billionaire CEO’s business empire.

The insider share sale also boosted Musk’s own net worth by roughly $50 billion in one fell swoop to $439.2 billion, according to the Bloomberg Billionaires Index, making him the first person to reach the $400 billion milestone.

Inflation trend in line with forecasts

U.S. consumer prices rose at a firm pace in November that was in line with expectations, solidifying expectations for the Federal Reserve to cut interest rates next week. The so-called core consumer price index which excludes food and energy costs increased 0.3% for a fourth straight month, Bureau of Labor Statistics figures showed Wednesday. From a year ago, it rose 3.3%.

Economists see the core gauge as a better indicator of the underlying inflation trend than the overall CPI that includes often-volatile food and energy costs. The headline measure rose 0.3% from the prior month and 2.7% from a year before. The SP 500 opened higher and Treasury yields declined after the CPI figures.

Shelter costs, one of the most persistent sources of inflation in recent years, cooled from the previous month, but the category still accounted for nearly 40% of the overall advance.

Compiled from Associated Press and Bloomberg reports.