Clean School Bus Rebates Available Now!

May 24, 2022

The Environmental Protection Agency’s Clean School Bus Program is now accepting applications from eligible fleets. This program, authorized by the Infrastructure Investment and Jobs Act (IIJA), provides $5 billion over the next 5 years to replace school buses with low- and no-emission buses. In 2022, the EPA will offer $500 million in rebates, which will be split evenly between zero-emission school buses and clean school buses powered by compressed natural gas (CNG) or propane.

According to the Diesel Technology Forum, 95 percent of U.S. school buses run on diesel fuel. The exhaust from diesel school buses is a health and environmental problem whose biggest effects are on children. By transitioning school buses to low- or no-emission fuel, these concerns can be addressed while offering financial savings from lower refueling and maintenance costs. Funding programs such as the EPA’s Clean School Bus program can help cover the upfront costs of cleaner school buses.

For the Clean School Bus Program, there are 297 school districts that are prioritized for funding in Michigan. These districts either serve low-income areas, are rural, are funded by the Bureau of Indian Affairs, and/or receive support payments for students who reside on Indian Land will be prioritized. A full list of prioritized applicants can be found under “supporting materials” on the Clean School Bus website.

Fleets that serve districts that are not on the priority list can still apply, so long as they are either a state or local government entity, eligible contractor, nonprofit school transportation association, or tribal entity. Private school bus fleets cannot apply for funding by themselves, but they can partner with an eligible applicant from the list above.

Applications for this year’s round of funding are due on August 12, 2022. For more information, attend the EPA’s Webinar on How to Apply on May 24, 2022, from 1:00 to 2:00 p.m. ET.

If you plan on applying, would like more information about the benefits of clean school buses, or would like to be connected to one of our members in the clean school bus industry, please reach out to Jane McCurry at jmccurry@cleanfuelsmi.org. Clean Fuels Michigan’s goal is to win as much funding for Michigan as possible so that children across the state can benefit from a clean, safe ride to and from school.