Biden-Harris Administration Makes $965M Available to Fund Clean School Buses that Reduce Pollution, Save Money, and Protect Children's Health

Biden-Harris Administration Makes $965M Available to Fund Clean School Buses that Reduce Pollution, Save Money, and Protect Children's Health

September 26, 2024

BOSTON - Today, Sept. 26, 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. The Biden-Harris Administration's Investing in America agenda continues to accelerate the transition of the nearly 500,000 school buses in America to cleaner technologies, helping to protect the more than 25 million children who ride a school bus every day from harmful air pollution. 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.

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, many of which are identified as priority areas serving low-income, rural, and, or Tribal students.

"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. "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."

The 2024 Clean School Bus Rebate Competition

Applications for this year's Clean School Bus Rebate Program are due on the EPA online portal by 4 p.m. EST on 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.

EPA is committed to ensuring the Clean School Bus Program advances environmental justice and delivers on President Biden's Justice40 Initiative, which sets a goal that 40% of the overall benefits of certain federal investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. EPA will prioritize applications that replace buses serving low-income, rural, and Tribal students. Large school districts with communities of concentrated poverty may also submit documentation to be prioritized if their application focuses on clean school buses serving those communities.

The Biden-Harris Administration is committed to investing federal dollars in a way that drives high-quality job creation and inclusive economic growth in the clean energy economy. It's a priority for EPA that school districts prepare for how to support their workers, including bus drivers, mechanics, and other essential personnel, to safely operate and maintain the new buses and maintain high labor standards. As a result, workforce training is an eligible use of program funds, and EPA strongly encourages school districts to develop comprehensive workforce plans in partnership with their employees to help them prepare for the transition to clean school buses.

EPA is working closely with the Joint Office of Energy and Transportation (JOET) of the U.S. Department of Energy and U.S. Department of Transportation to provide school districts with support as they plan for and implement adding electric school buses to their fleets. Clean School Bus Program applicants and selectees can receive free technical assistance from JOET through resources such as one-on-one meetings and public webinars. The EPA and JOET are also able to connect school districts with local utility providers to assist them in the infrastructure planning necessary for projects including battery-electric school buses.

Proactive and ongoing communication with key stakeholders such as school boards and local utilities is critical to successful bus and infrastructure deployment. This rebate cycle incorporates a number of best practices to ensure that these key stakeholders are engaged and coordinating effectively. More information regarding required application materials are available in the Program Guide on the Clean School Bus Rebate Program webpage.

EPA is accepting rebate applications from Sept. 26 until Jan. 9, 2025.

EPA Clean School Bus Program Overview

EPA's Clean School Bus Program was created by President Biden's Bipartisan Infrastructure Law, which provides an unprecedented $5 billion of funding to transform the nation's fleet of school buses. The Clean School Bus Program funds zero and low-emission buses, including electric, propane, and compressed natural gas (CNG) buses that produce lower tailpipe emissions compared to that of their older diesel predecessors.

Diesel air pollution is linked to asthma and other public health problems that cause serious health concerns and missed days of school, with outsized impacts in overburdened communities. New zero-emission and clean buses will not only reduce air pollution and help address the outsized role of the transportation sector on climate change, but will also produce cleaner air for students, bus drivers, school staff working near bus loading areas, and people living in communities that buses drive through each day. Over the lifespan of the vehicles, clean school buses can also cost less to maintain and fuel than the older buses they are replacing - freeing up needed resources for schools.

EPA's Clean School Bus Program is now responsible for over two-thirds of the committed electric school buses across the country, and each of these clean buses provide immediate public health and educational benefits as soon as the new buses hit the road. This funding, along with help from states and others, is helping transform the school bus market.

School districts will proceed with purchasing and deploying their new buses in a time frame that best suits their unique situation, including factors like the number of new buses they're deploying, need for utility upgrades, and familiarity with new bus technologies. As the project period comes to a close for the first funding opportunity, the 2022 CSB Rebates, EPA anticipates that many of the first wave of these zero-emission and clean school buses will be in service for the 2024-2025 school year, while many buses funded under subsequent funding opportunities, such as the 2023 CSB Rebates, will be in service for the 2025-2026 school year.

To learn more about the EPA Clean School Bus Program, visit the Clean School Bus Program webpage. Questions and feedback may be directed to [email protected].