Distributed Energy Resources, GHG Emissions, Industrial  -  October 2, 2024

EPA Allocates $965M for Clean School 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. 

With this funding, the Biden-Harris Administration’s Investing in America agenda continues to accelerate the transition of the nearly 500,000 school buses in the U.S. to cleaner technologies.

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 GHG pollution and help accelerate America’s leadership in developing clean vehicles.

Under the Clean School Bus Program's multiple grant and rebate funding opportunities to date, EPA has awarded almost $3 billion to fund approximately 8,700 school bus replacements, approximately 95% of which are zero-emission, battery-electric. Funding has been awarded to nearly 1,300 school districts in nearly all 50 states and Washington, D.C., along with several federally recognized Tribes and U.S. territories.

“Over the past three years, we’ve seen tremendous interest from schools across the country to upgrade to clean and zero-emission buses,” said EPA Administrator Michael S. Regan in a statement. “Thousands of new buses on the road mean our children are breathing cleaner air on their way to and from school, their communities are seeing cleaner air and less climate pollution, and schools are supporting good paying American jobs.”

Applications for this year’s Clean School Bus Rebate Program are due on the EPA online portal by January 9, 2025. Applicants can request up to $325,000 per bus for up to 50 buses per application, an increase in the total buses per project in response to stakeholder feedback for larger projects to help achieve faster fleet turnover. Funds can be used to cover bus and infrastructure costs for awardees requesting electric school buses, as well as eligible training costs for bus drivers, electricians and others working with the new buses or infrastructure.

Selectees may also be eligible for Inflation Reduction Act tax credits applicable to their bus and infrastructure purchases. For example, the clean vehicle tax credits for qualifying school buses are worth up to $40,000. Narrowing the cost difference between clean school buses and diesel school buses remains an integral goal of the EPA Clean School Bus Program. The agency adjusted electric school bus funding levels in this rebate program to help stretch funding further and drive down long-term electric school bus costs.

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