What Is the Clean School Bus Rebate Program?
The 2021 Bipartisan Infrastructure Law allocates $5 billion to the EPA for replacing diesel school buses with clean (propane or compressed natural gas) and zero-emission (ZE) electric buses. Since 2022, the EPA has administered an annual Clean School Bus (CSB) Rebate and/or Grant Program. The 2024 round of the CSB Rebate Program makes $1 billion in funding available for eligible parties, with applications due online by January 9, 2025.
Who Is Eligible to Apply?
Public school districts, tribal applicants and certain third parties (nonprofit school transportation associations and eligible contractors) can apply. Funding covers bus replacement, charging infrastructure and labor, electrician certification, design and engineering, workforce training and more.
Benefits of Participating in the Program
- Acquire up to 50 clean or ZE school buses through rebates.
- Receive up to $325,000 per bus for priority (low-income or rural) districts and up to $170,000 per bus for nonpriority districts or parties.
- Save thousands in annual fuel costs, potentially over $100,000 in lifetime fuel and maintenance savings.
- Gain additional tax benefits through the Inflation Reduction Act (IRA); tax-exempt entities may receive part or all of the tax benefit's value through a direct payment.
- Contribute to cleaner air and meet key environmental health and safety goals.
- Address environmental and transportation justice goals, benefiting communities with higher pollution rates and students more likely to ride the bus: minority, low-income and students with disabilities.
Preplanning Is Essential or Benefits May Not Be Realized
In 2022 nearly 12 percent of selectees withdrew, and many more failed to reap benefits due to:
- Limited range of electric buses, especially in extreme temperatures, that could not satisfy capacity and route requirements.
- Unplanned retraining and electrical infrastructure needs.
- Incompatible bus depot models.
- Insufficient electrical infrastructure, leading to costly upgrades and delays.
- Supply chain and infrastructure challenges delaying deployment.
- Steep learning curves for maintenance staff and drivers.
- Unaccounted indirect costs in applications, resulting in out-of-pocket expenses.
What to Do Now – Application Steps
- Conduct a fleet inventory with specific information on every bus.
- Evaluate bus types and numbers to meet district needs.
- Coordinate with the district's electric utility provider for a Utility Partnership Agreement.
- Identify funding amounts for indirect costs before submitting the application. These include charging stations' purchase and installation, bus depot redesign, repair shop transformation, electrician certification costs and drivers and maintenance staff retraining,
- Obtain school board approval.
Originally published 24 October 2024
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