SBF 70 years logo
MenuMENU
SearchSEARCH

EPA Awards $10.5M in Diesel Emission Reduction Grants

The latest round of DERA funding will be used to replace 473 school buses in 40 states.

Sadiah Thompson
Sadiah ThompsonAssistant Editor
May 4, 2021
EPA Awards $10.5M in Diesel Emission Reduction Grants

The latest round of Diesel Emissions Reduction Act funding will be used to replace 473 school buses in 40 states.

File photo

2 min to read


The U.S. Environmental Protection Agency (EPA) recently awarded $10.5 million to replace 473 older diesel school buses.

The funds are being distributed to 137 school bus fleets in 40 states, each of which will receive rebates through the EPA's Diesel Emissions Reduction Act (DERA) funding, according to a news release from the agency.

"The rebates provide children with a safe and healthy way to get to school by upgrading older diesel engines in our nation’s school buses," said EPA Administrator Michael S. Regan. "Through the Diesel Emissions Reduction Act, the EPA is equipping local school districts with cleaner-running buses, helping them along the route to healthier kids and communities."

Ad Loading...

As School Bus Fleetpreviously reported in November 2020, Jason Wilcox, a representative from the EPA’s Legacy Fleet Incentives and Assessment Center, announced during a virtual workshop held by the National Association of State Directors of Pupil Transportation Services (NASDPTS) that this was the first year the agency would base each rebate amount on fuel type rather than bus size as in previous years. During the workshop, he also announced changes to the application’s school bus usage requirements and a $300,000 cap on rebate amounts.

This year, a total of five school bus fleets are reportedly planning to replace 16 aging diesel buses with electric buses, according to the EPA. Applicants scrapping and replacing diesel buses with engine model years 2006 and older will receive rebates between $20,000 and $65,000 per bus, depending on the fuel type of the replacement bus.

Since 2008, the DERA program has funded more than 1,300 projects across the country, reducing diesel emissions in more than 70,000 engines.

A list of the 2020 DERA school bus rebate recipients can be found here.

More Alternative Fuels

An orange and yellow graphic with a black and white image of the back end of an electric bus next to charging infrastructure and text reading "Alt-Fuel Moves: Fleets Power Up Beyond the Bus."
Alternative Fuelsby Elora HaynesJune 12, 2026

Alt-Fuel Moves: Fleets Power Up Beyond the Bus

See how districts are pairing electric buses with charging, solar, and V2G technology to cut costs, boost resilience, and unlock new fleet value.

Read More →
Graphic showing a winding road and directional signpost labeled “electric,” “propane,” “biofuels,” and “natural gas” beneath the headline “Where Is EPA Funding Headed?” with School Bus Fleet logo.
Alternative FuelsJune 11, 2026

What the EPA’s Updated Clean School Bus Program Means for Fleet Electrification in 2026 and Beyond

A guide to the EPA’s evolving school bus grants, including how the Trump administration changed funding priorities and how school districts can prepare for future bus purchases.

Read More →
Billy Murphy of Power Innovations International speaks at ACT Expo in front of a display featuring EV charging equipment and a Blue Bird school bus graphic. A text overlay reads “Simplified EV Charging.”
Alternative Fuelsby Amanda HuggettJune 3, 2026

A Solution Helping School Buses Charge Without Major Infrastructure Upgrades

Power Innovations International dishes on its EV charging technology designed to reduce infrastructure barriers, improve reliability, and support V2G applications for school bus fleets.

Read More →
Ad Loading...
Promotional graphic announcing New Eagle's OpenECU platform. A blue electronic control unit (ECU) is featured against an orange background with EV charging stations and charging cables. The image includes the New Eagle and OpenECU logos, a "New Product" label, and School Bus Fleet branding.
Alternative FuelsJune 2, 2026

New Eagle Launches All-in-One EV Control Platform

The new OpenECU NX3 platform integrates charging and vehicle controls into a single platform, with support for megawatt charging and vehicle-to-grid technologies.

Read More →
Children board a yellow electric school bus from Central Consolidated School District during snowfall, as an adult assists students at the bus entrance.

GreenPower Unveils New Heating Solution for Type A Bus

The all-electric bus manufacturer's new product aims to eliminate cold-cabin issues on its Nano BEAST zero-emission school buses operating in cold climates.

Read More →
An orange and yellow graphic with a black and white image of an electric bus charger and text reading "Alt-Fuel Moves: Fleets Plug In For the Long Haul."
Alternative Fuelsby Elora HaynesMay 22, 2026

Alt-Fuel Moves: Fleets Plug In for the Long Haul

School districts across the U.S. are moving electric school bus plans into operation, with new fleet deployments, charging infrastructure, and long-term electrification partnerships taking shape.

Read More →
Ad Loading...
Thumbnail graphic for a School Bus Fleet interview at ACT Expo featuring a smiling BetterFleet executive seated in front of a fleet technology booth display. Overlay text reads “BetterFleet” and “The G Problem in V2G.”
Alternative Fuelsby Amanda HuggettMay 22, 2026

The Achilles Heel of School Bus Electrification: BetterFleet’s Take

BetterFleet’s managing partner discusses AI-powered EV fleet management, vehicle-to-grid challenges, and the real challenges in bus electrification today, from ACT Expo.

Read More →
A red, black, and white graphic with text reading "The Fuel Decision is Yours."
Alternative FuelsMay 20, 2026

You're On Your Own to Pick a Drivetrain [Op-Ed]

After years of federal pressure toward electric school buses, districts are suddenly being told to choose their own path. Let’s explore the risks, realities, and politics behind school bus drivetrain decisions.

Read More →
Mark Childers of Thomas Built Buses stands in front of a large yellow electric school bus at ACT Expo while discussing the company’s new Type D EV school bus platform. Overlay text reads “The Big New EV School Bus” with School Bus Fleet at ACT Expo branding.
Alternative Fuelsby Amanda HuggettMay 19, 2026

Wattson: Thomas Built’s Largest EV School Bus Yet

Check in with Mark Childers on the new Wattson Type D electric school bus, featuring faster charging, expanded passenger capacity, and advanced safety technology.

Read More →
Ad Loading...
Russell Vare of The Mobility House sits at the company’s ACT Expo booth discussing vehicle-to-grid technology and smart EV charging for school bus fleets. Overlay text reads “V2G Goes Mainstream” alongside School Bus Fleet at ACT Expo branding.
Alternative Fuelsby Amanda HuggettMay 15, 2026

The New Era of Electric School Buses: V2G, Bidirectional Chargers & More

The Mobility House discusses AI-powered charging, vehicle-to-grid technology, smart energy management, and the next phase of school bus electrification.

Read More →