Did You See? How to Find Funding for Alt-Fuel School Buses
Propane Key Solution in Latest Clean School Bus Funding Round
With dedicated propane autogas school buses or propane-powered recharging infrastructure, reliable solutions are available today

For every propane bus purchased through the Clean School Bus Program's second round of funding, approved districts receive up to $35,000.
Photo: PERC
In the latest round of Clean School Bus funding announced by the Environmental Protection Agency (EPA), school transportation directors once again have the power to take advantage of propane’s benefits through dedicated propane autogas school buses or propane-powered recharging infrastructure.
For every propane autogas bus purchased through the program, the EPA will provide transportation directors with up to $35,000. The program prioritizes high-need local educational agencies, rural, and tribal school districts. As an affordable, portable, and available energy source, propane is an ideal solution for these prioritized categories.
“Every child deserves to have a safe, clean, healthy ride to school. If we keep pouring money only into expensive electric buses—even with rebates or grants—only a select number of students will be able to see that reality. We need to face facts that it will take a mix of energy sources to achieve that goal,” said Steve Whaley, director of autogas business development with the Propane Education & Research Council.
In 2022, the EPA solicited applications for $1 billion for zero-emission and low-emission school bus rebates. The $1 billion from this first round of funding paid for 2,350 electric school buses. The funding also awarded 109 low-emission propane buses. The same amount of money distributed for electric buses could have helped fund as many as 29,000 propane buses, assuming each bus received the $30,000 incentive from the program.
When considering well-to-wheel emissions, the 2,350 diesel buses the grant replaced with electric will reduce nitrogen oxide (NOx) emissions by just 665 metric tons per year and carbon dioxide emissions by only 36,870 metric tons. If the funds had gone toward the 29,000 propane buses to replace diesel, it would have reduced nearly 10 times the amount of NOx emissions and three times the amount of carbon dioxide emissions.

PERC touts the economic and environmental benefits of propane buses.
Image: PERC
“The true energy mix lies somewhere between all propane autogas or all electric buses,” Whaley said. “To further lower the cost for school districts applying for electric buses, the propane industry is now providing propane-powered recharging systems as an affordable and resilient infrastructure solution.”
Propane-powered charging infrastructure uses microgrid technology powered by renewable energy sources like solar, wind, and a propane generator to reliably recharge school buses independent of the grid, providing a portable option that can be installed in as little as 24 hours. With the grant, school districts can apply for up to $395,000 that can be split between an electric bus and its charging infrastructure, including propane-powered options.
Applications must be submitted electronically through Grants.gov no later than 11:59 p.m. EST on Tuesday, Aug. 22, 2023.
More Alternative Fuels

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 →
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 →
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 →
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 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 →
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 →
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 →
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 →
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 →
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 →
