EPA opens $965 million Clean School Bus Rebate Program
Applications are due by January 9, 2025, 4:00 PM ET
Announcement Type: Notice of Funding Opportunity (this program is currently accepting applications)
Opportunity: Clean School Bus Rebate Program
Overview and Eligible Uses:
The EPA’s Clean School Bus Program was established under President Biden’s Bipartisan Infrastructure Law, which allocates an unprecedented $5 billion to modernize the nation's school bus fleet. The program provides funding for zero and low-emission buses, including electric, propane, and compressed natural gas (CNG) vehicles, all of which emit significantly fewer tailpipe emissions compared to older diesel buses.
The U.S. Environmental Protection Agency announced the latest round of funding from the Clean School Bus Rebate Program with up to $965 million available to school districts. This fourth round of funding will build on the previous nearly $3 billion in investments being distributed nationwide to further improve air quality in and around schools, reduce greenhouse gas pollution fueling the climate crisis, and help accelerate America’s leadership in developing the clean vehicles of the future.
Diesel pollution is associated with asthma and other health issues, leading to serious public health concerns and missed school days, particularly in overburdened communities. The introduction of zero-emission and clean buses not only reduces air pollution and addresses the transportation sector's impact on climate change but also improves air quality for students, bus drivers, school staff working near loading areas, and residents of neighborhoods these buses pass through. Additionally, over their lifespans, clean buses can be more cost-effective to maintain and fuel compared to older models, freeing up valuable resources for schools.
EPA’s Clean School Bus Program (CSB) now accounts for more than two-thirds of the electric school buses committed nationwide, with each bus offering immediate health and educational benefits as they hit the road. This funding, combined with support from states and other entities, is helping to reshape the school bus market.
School districts will purchase and deploy their new buses based on their specific needs, considering factors like the number of buses being replaced, the need for utility upgrades, and their familiarity with new technologies. As the project period for the first funding opportunity, the 2022 CSB Rebates, concludes, EPA expects many of the initial wave of zero-emission and clean buses to be in operation for the 2024-2025 school year, with buses funded under subsequent opportunities, such as the 2023 CSB Rebates, likely entering service in the 2025-2026 school year.
Amount:
Rebate applications can request funds for replacing up to 50 buses.
For the 2024 CSB Rebates, the EPA anticipates offering up to $965,000,000 in total funding; the EPA may adjust the total funding amount depending on demand and other considerations.
Award Type: Competitive Grants and Cooperative Agreements
Eligible Applicants:
Local or State governmental entities responsible for:
Providing school bus service to one or more public school systems; or
The purchase, lease, license, or contract for service of school buses;
A public charter school district responsible for the purchase, lease, license, or contract for service of school buses for that charter school.
Regional Education Service Agency or Joint Transportation Agency, with an NCES ID specific to either the RESA or JTA.
Indian Tribes, Tribal Organizations, or Tribally Controlled Schools responsible for:
Providing school bus service for a Bureau of Indian Education funded school; or
The purchase, lease, license, or contract for service of school buses.
Eligible contractors are for-profit, not-for-profit, or nonprofit entities that have the capacity to (1) sell, lease, license, or contract for service clean or ZE school buses or related charging or fueling infrastructure to school bus owners or (2) arrange financing for such a sale, lease, license, or contract for service.
Nonprofit School Transportation Associations; or
School bus dealers, original equipment manufacturers, school bus service providers, and private school bus fleets that meet these criteria are eligible contractors.
Key Dates: Applications are due by January 9, 2025, 4:00 PM ET
Key Links:
EPA.gov Clean School Bus Program Rebates
For a full list of currently available grant programs under the Infrastructure Law and other helpful tools, take a look at our Helpful Resources page.
This tracker will continue to send updates when new funding opportunities are announced.