Clean School Bus Program
On this page:
- Background
- Eligibility
- Available Technical Assistance
- Connections to Other EPA, Federal and Non-Governmental Efforts
Background
The EPA’s Clean School Bus Program offers funds to replace existing school buses with new, zero-emission and low-emission models. Funding is provided through both rebates and a competitive grant program. By upgrading to buses with low or zero tailpipe emissions, the program aims to improve air quality, accelerate the shift to greener transportation and ensure equitable benefits across communities. The reduction in greenhouse gas emissions provided by these bus replacements also helps to address the outsized role that the transportation sector has in contributing to climate change.
As this initiative aims to reduce pollutant emissions, engaging communities in sustainable practices and providing multiple funding opportunities for school districts, it also considers broader climate adaptation and resilience efforts. The 2023 Clean School Bus Grant Program promoted climate resilience co-benefits by requiring that applicants assess project vulnerability to local climate impacts when making siting decisions. The program also required applicants to put operational plans in place to avoid damage to fleets and equipment from climate change impacts, such as flooding and sea level rise.
Eligibility
Who is generally eligible to apply?
Eligible entities for the Clean School Bus Program include state and local governmental entities, public school districts (including public charter school districts), nonprofit school transportation associations and Tribes or Tribally controlled schools – all responsible for school bus services or procurement. Additionally, eligibility covers third-party contractors that sell, lease, finance or contract for service clean or zero-emission school buses and related infrastructure.
The Bipartisan Infrastructure Law authorizes the EPA to prioritize awarding funds to certain communities that will benefit from the program. To qualify as a prioritized applicant in the 2023 Clean School Bus Grant Program, the applicant must have identified as one or more of the following:
- High-need school districts and low-income areas (identified by the Small Area Income and Poverty Estimates School District Estimates).
- Rural school districts (limited to school districts identified with locale code “43- Rural: Remote” by the National Center for Education Statistics).
- Bureau of Indian Affairs-funded school districts.
- School districts that reside on Indian land.
In line with the applicant prioritization criteria for the 2023 Clean School Bus Grant Program, the program is a Justice40 covered program, which means that 40% of applicable federal benefits of the program must go to disadvantaged communities.
No cost sharing or matching was required for the 2023 Clean School Bus Grant Program funding opportunity. However, the EPA did provide additional evaluation points to applicants that demonstrated they have leveraged or plan to leverage extra external funds to support their proposed project activities. This can include public-private partnerships or grants from other entities or issuing school bonds, referred to as "leveraged resources." Applicants who proposed to use leveraged funds are expected to secure these resources as described in their applications. The EPA also provided evaluation points to applicants based on the quality and extent to which the project would assess and implement climate change adaptation considerations to help ensure that the project achieves its expected outcomes even as the climate changes.
For specific details on eligibilities, applicant requirements and sub-award requirements, visit the Clean School Bus Grant Program’s webpage. Current information on awards is available on the Clean School Bus Program Awards webpage.
How can projects funded by this program incorporate adaptation and resilience considerations?
Eligible projects under the 2023 Clean School Bus Grant Program include the replacement of existing model year 2010 or older diesel school buses, with new electric, propane or compressed natural gas school buses. If a fleet has no eligible 2010 or older diesel school buses and is requesting zero-emission school bus replacements, the fleet may either 1) scrap 2010 or older non-diesel internal combustion engine buses or 2) scrap, sell or donate 2011 or newer diesel or non-diesel internal combustion engine buses. Additionally, funding supports the acquisition of electric vehicle supply equipment infrastructure and installations for charging new electric buses. Notably, funds can be used for battery energy storage systems associated with new electric school buses funded in the program, as well as renewable on-site power generation systems that power the buses and equipment. To be eligible, these systems must be on the customer’s side of the electrical meter.
As the 2023 Clean School Bus Grant Program aims to reduce the levels of greenhouse gas emissions and local air pollutants, it can also help communities prepare for, adapt to and build resilience against climate change. Examples of climate adaptation and resilience aspects of bus replacement projects funded by the 2023 Clean School Bus Grant Program include assessing project vulnerability to local climate impacts when making siting decisions and operational plans. Measures taken to avoid damages due to local climate impacts could include ensuring fleets and equipment are protected from climate change impacts, such as flooding and sea level rise and protecting infrastructure from storm damage. In addition, as noted above, renewable on-site power generation systems on the customer’s side of the electrical meter are eligible program costs. These systems can both power the buses and equipment, as well as be used as backup power during storms to strengthen community resilience. Thus, 2023 Clean School Bus Grant projects that integrate renewable energy sources with transportation infrastructure or employ advanced energy storage solutions can serve as models for local resilience.
Available Technical Assistance
For applicants replacing zero-emissions school buses, coordination with their utility(ies) is critical to initiate early and continue throughout the project. The EPA's Clean School Bus website provides charging and fueling infrastructure resources for alternative fuel buses, including technical assistance videos, case studies, best practices and more. The Joint Office of Energy and Transportation provides technical assistance to school districts interested in transitioning to clean school buses via a partnership with the EPA. Interested stakeholders can contact the office to ask questions and receive free technical assistance regarding the planning and deployment of clean school buses in their communities on topics including conducting a route analysis and choosing a bus and charger type. Stakeholders can also get support working with their utility companies early in the application process.
Connections to Other EPA, Federal or Non-Governmental Efforts
Support offered by the following programs can be used in combination with the Clean School Bus Program to build capacity for climate adaptation and resilience projects.
- Clean Bus Planning Awards Program: Funded by the Joint Office of Energy and Transportation and managed by the National Renewable Energy Laboratory, this new program provides free technical assistance to create comprehensive and customized bus electrification plans for fleets across the United States. Applications for assistance are open on a rolling basis through September 30, 2024, giving fleets an opportunity to fully understand their needs before applying for funding support for fleet electrification. This program will reduce the burden of electrification by helping fleet managers create a step-by-step plan to transition their bus fleet.
- Environmental Justice Thriving Communities Technical Assistance Centers: These centers provide training and other assistance to build capacity for navigating federal grant application systems, writing strong grant proposals and effectively managing grant funding. Visit the website to identify the EJ TCTAC in your area and access grant technical assistance.
- Clearinghouse of Electric School Bus Funding and Financing Opportunities: There are many other federal, state and local-level electric school bus and electric vehicle supply equipment funding opportunities that are similar to the Clean School Bus Program. The World Resources Institute’s Clearinghouse of Electric School Bus Funding and Financing Opportunities provides a compiled list of several available funding opportunities in a single file, which contains information regarding type of funding, program eligibility, funding levels and more.
- Note that replacement buses and any associated charging infrastructure paid for in part by Clean School Bus funds must not also be funded by other federal funds. Fleets can use external non-federal funding sources as part of their bus replacement project but must confirm with the source of those funds that they are not pass-through federal funds.
- Inflation Reduction Act Tax Credits: The Clean School Bus Program’s funding recipients may be eligible for IRA tax credits via the Internal Revenue Service. Credits would be applicable to bus and infrastructure purchases and may include the Commercial Clean Vehicle Credit that provides up to $40,000 for qualified commercial vehicles and the Alternative Fuel Vehicle Refueling Property Credit that provides up to $100,000 for qualified charging and refueling infrastructure. Visit the IRS website for more information on these credits. Funding recipients are encouraged to keep an eye out for future guidance that the IRS intends to issue on these two tax credits.