EPA announcing $965 million in rebates for Clean School Bus Program

The U.S. Environmental Protection Agency (EPA) is opening the next round of rebates for a federal electric school bus program. By making $965 million in rebates available, the EPA will accelerate the national transition of the nearly 500,000 school buses to cleaner, zero-emissions technologies.

Through the Clean School Bus Rebate Program, the EPA is authorized to invest $5 billion to transform America’s fleet of school buses. The program, funded by the Bipartisan Infrastructure Law in 2021, offers rebates to applicants that replace existing gas-powered school buses with clean, zero-emissions models. Since its implementation, the program is responsible for funding over two-thirds of the committed electric school buses around the country, according to a World Resources Institute article in July.

This funding opportunity announcement marks the fourth round of funding under the Clean School Bus Rebate Program. In this round, applicants can apply for rebates up to $325,000 per bus and up to 50 buses per application. Rebates can cover costs for buses, infrastructure and eligible training for personnel involved in operating and maintaining the new vehicles.

Candidates eligible to apply for this round of Clean School Bus Program rebates include:

Local and state governments responsible for school bus services,

Public charter and public school districts

Regional Education Service Agencies

Joint Transportation Agencies

Tribes and tribal organizations offering school bus services

Nonprofit school transportation agencies

School bus dealers

Other related contractors

The project period deadline for selectees to receive new buses, install charging infrastructure, repurpose existing buses and submit Close Out forms is May 2027.

The EPA’s Clean School Bus Program, through its first three rounds of funding, has delivered almost $3 billion to over 1,300 school districts, tribal and territorial entities and governments, furthering clean electric energy initiatives around the country. To date, the program is responsible for funding approximately 8,700 school bus replacements, almost 95% of which are zero-emission, battery-electric vehicles.

Photo courtesy 42-BRT