School Bus Fleet
MenuMENU
SearchSEARCH

EPA Offering $17M in School Bus Rebates

The agency will award the funding through two separate rebate opportunities this year: the Diesel Emissions Reduction Act School Bus Rebate Program, and the American Rescue Plan Electric School Bus Rebates.

by SBF Staff
October 6, 2021
EPA Offering $17M in School Bus Rebates

The agency will award the funding through two separate rebate opportunities this year: the Diesel Emissions Reduction Act School Bus Rebate Program, and the American Rescue Plan Electric School Bus Rebates.

File photo

2 min to read


The U.S. Environmental Protection Agency (EPA) has announced two school bus rebate opportunities for this year: the longstanding Diesel Emissions Reduction Act (DERA) School Bus Rebate Program, and the American Rescue Plan (ARP) Electric School Bus Rebates.

The two funding opportunities, totaling to approximately $17 million, will be available to public and private fleet owners for the replacement of aging diesel school buses with new school buses that meet the EPA’s cleanest emission standards, according to a news release from the agency.

Ad Loading...

“All children, regardless of their zip code, have a right to learn and play in a healthy environment,” said EPA Administrator Michael S. Regan. “These funding opportunities to replace highly polluting diesel buses will result in healthier air for many of the 25 million American children who rely on school buses to transport them to and from school each day.”

ARP Electric School Bus Rebates

The ARP Electric School Bus Rebates include $7 million to fund the replacement of aging older diesel school buses with new, zero-emission electric school buses. The funds are reserved exclusively for school districts in underserved communities, tribal schools, and private fleets serving those schools. This program offers $300,000 per bus for up to four electric school bus replacements and associated charging infrastructure. The list of eligible applicants is available on the 2021 ARP Electric School Bus Rebates website.

DERA School Bus Rebates

Meanwhile, the EPA’s latest round of DERA School Bus Rebates offers approximately $10 million to fund the replacement of aging diesel buses with new electric, diesel, gasoline, propane, or compressed natural gas (CNG) school buses meeting current emission standards. All public school districts, and private bus fleets serving those schools are eligible to apply. Available rebates are between $20,000 to $65,000 per bus depending on the type of fuel used in the replacement bus. Applicants can request rebates for up to 10 buses with a maximum rebate amount of $300,000 per application.

Both rebate programs will select awardees through a lottery system. Awardees are required to scrap the older diesel bus models being replaced to ensure those buses will not continue to pollute. The programs will run concurrently but require separate application forms.

The deadline to submit applications is Nov. 5 at 4 p.m. Eastern.

Ad Loading...

More Alternative Fuels

School Bus Fleet graphic showing two yellow electric school buses parked beside a charging station, with the headline “Bipartisan Bill Seeks to Extend Clean School Bus Program Through 2031.”
Alternative Fuels•by Elora Haynes•October 14, 2026

Bipartisan Bill Seeks to Extend Clean School Bus Program Through 2031

The proposed legislation would renew federal support for cleaner school buses as districts navigate funding uncertainty, rising fuel and infrastructure costs, and fleet replacement needs.

Read More →
School Bus Fleet graphic reading “Alt-Fuel Moves: Bidirectional Charging & Propane” alongside an electric school bus and charging station.
Alternative Fuels•by Elora Haynes•October 5, 2026

Alt-Fuel Moves: Electric Bus Rollouts, Bidirectional Charging & Propane Growth

See which fleets are adding electric and propane school buses as districts and operators invest in charging infrastructure, bidirectional technology, and alternative-fuel expansion.

Read More →
School Bus Fleet graphic reading “When Fuel Prices Change the Math: What rising diesel costs mean for fleet planning,” illustrated with a fuel pump and oil barrels.
Alternative Fuels•by Steve Mitchell•October 4, 2026

Nobody Told Diesel Prices They Were Supposed to Come Down

With diesel prices surging, school bus fleets have new reason to stress-test fuel costs, consider diversification, and calculate what each route really costs to operate.

Read More →
Ad Loading...
Yellow full-size school bus traveling along a tree-lined road beneath the words “Gas is Back!” in a School Bus Fleet graphic.
Alternative Fuels•Cover Story•by Amanda Huggett•October 2, 2026

Why Gasoline School Buses Are Making a Comeback

Gasoline is gaining ground in full-size school buses. See how today’s options stack up against diesel on cost, maintenance, emissions, performance, and more.

Read More →
EPA DERA funding graphic featuring a yellow school bus beneath a blue sky with the EPA logo and the words “DERA Funding Returns!”
Alternative Fuels•by Amanda Huggett•September 25, 2026

EPA Opens $180M DERA Funding Round for Diesel Upgrades

The 2026 Diesel Emissions Reduction Act program seeks applications from eligible organizations to accelerate the retirement of legacy diesel vehicles.

Read More →
A yellow RIDE Type D electric school bus is parked along a tree-lined street outside a school.
Alternative Fuels•by Elora Haynes•September 25, 2026

The Secret Life of an Electric School Bus Battery

Batteries change throughout years of daily routes, but degradation doesn’t necessarily mean the end. Here’s what operators should know about performance, safety, and second life.

Read More →
Ad Loading...
Catalyst Mobility: Building Clean Transportation Together
Management•by Alex Roman•September 14, 2026

CALSTART and Forth Combine to Form Catalyst Mobility

The new name represents a renewed vision for the nonprofit focused on advancing clean, equitable, and affordable transportation solutions that move people and goods.

Read More →
An orange and yellow graphic with a black and white image of a propane deployment event with text reading "Charging Hubs & Real World EV Testing."
Alternative Fuels•by Elora Haynes•September 3, 2026

Alt-Fuel Moves: New Buses, Charging Hubs & Real-World EV Testing

Propane and electric school bus deployments continue to grow as districts add new vehicles, expand charging infrastructure, and gather more real-world operating data.

Read More →
Electric school buses parked in a parking lot.
Alternative Fuels•by Elora Haynes•August 24, 2026

Fewer Electric School Bus Models Reshape the U.S. Market

WRI’s latest buyer’s guide points to a consolidating electric school bus market, but fewer options may reflect a maturing industry rather than fewer meaningful choices for school bus operators.

Read More →
Ad Loading...
A yellow school bus with its red stop arm extended is stopped to load or unload students as a blurred child crosses in the foreground, illustrating the importance of motorists stopping for school buses and protecting students in the loading zone.
Alternative Fuels•August 12, 2026

The Fuel Budget You Can Actually Predict: How Propane Autogas Keeps Money in the Classroom

Learn how propane autogas helps school districts manage fuel costs with predictable pricing, lower maintenance, and reduced emissions from former transportation director Joel Stutheit.

Read More →