SchoolBus logo in red and orange
MenuMENU
SearchSEARCH

EPA Inspector General Raises Clean School Bus Fraud Concerns

The Office of the Inspector General made several recommendations to improve the application process to ensure accuracy and veracity.

Wes Platt
Wes PlattFormer Executive Editor
Read Wes's Posts
January 11, 2024
EPA Inspector General Raises Clean School Bus Fraud Concerns

The EPA's Office of the Inspector General urged the agency to take steps to battle fraud and bolster supervision over third-party involvement in the application process.

Image: Canva

3 min to read


The Clean School Bus Program “is rife with potentially inaccurate information,” according to the Environmental Protection Agency’s Office of Inspector General.

“We also identified instances in which entities lacking student enrollments applied for and received funding, imperiling the program’s principle of equitable resource distribution,” wrote Jason Abend, assistant inspector general, in a memorandum issued Dec. 27, 2023. “A major challenge we identified is that the EPA’s lack of clear and established verification protocols for the application process allows applicants to self-certify their eligibility, which could lead to inaccurate information being submitted to the EPA.”

Ad Loading...

Issues with Complete and Verifiable School Bus Rebate Information

Currently, the way the statutory text governing the program is written, the inspector general’s office is concerned because applicants aren’t required to “expressly attest to the accuracy and truthfulness of their Clean School Bus applications.” The EPA also has no mechanism for verifying an applicant’s supplied information.

The memo gives examples of instances, such as:

  • A 2022 rebate recipient sought funding for buses that would serve “an administrative entity with zero students.” That entity was awarded funding by the EPA.

  • Rebate applicants were selected for awards but hadn’t cleared the plan through the eligible school district. The districts later declined the awards. “Total withdrawals from the 2022 Clean School Bus rebates, including those school districts that withdrew because a contractor applied without their consent or knowledge, were in excess of $38 million,” the memo stated.

  • In one case, the office had to conduct a six-month investigation – including interviews, surveillance, and subpoenas – to gather information that should’ve been in an application, including the identity of a contractor applicant.

What Comes Next for the Clean School Bus Program?

The EPA is currently accepting applications for the latest rebate funding round, with a deadline on Jan. 31. This week, the agency announced funding for the first round of Clean School Bus Program grants.

“Although we have not yet finished our review of the 2023 Clean School Bus rebate program, as it is still open for applications, our findings likely have applicability to this program as well, given its similarities to the 2022 rebate and 2023 grant programs,” the memo stated.

Ad Loading...

The office recommended improvement measures, including:

  • Require applicants to provide supporting documentation.

  • Establish a validation regimen.

  • Require recipients to maintain a documentation archive.

  • Highlight criminal penalties and require signed certifications.

  • Require notarized attestations and certifications.

  • Increase oversight of third-party vendors.

“By implementing these measures, the EPA will bolster the efficacy of federal award administration, enhance the authenticity of award applications, and elevate the integrity of the Clean School Bus Program,” the memo stated. “This proactive stance will serve the program’s envisioned goals of environmental enhancement, public health fortification, and economic advancement, while concurrently mitigating potential fraud, waste, abuse, or mismanagement of federal resources.”

More Alternative Fuels

An orgnge, white, and black graphic with a black and white image ofpropane school buses.
Alternative Fuelsby Elora HaynesJanuary 30, 2026

Alt-Fuel Moves: Product Innovations & Funding Outlooks

Check out some of the latest moves where alternative fuels and school buses intersect, including electric and propane bus deployments, new EV products, and an update from CARB.

Read More →
SponsoredJanuary 19, 2026

3 New Ways Fleet Software Pays: ROI opportunities for modern fleet managers

Keeping buses safe, reliable, and on schedule requires more than manual processes. This eBook explores how modern fleet software supports school transportation teams with automated maintenance scheduling, smarter video safety tools, and integrated data systems. Discover practical ways fleets are reducing breakdowns, improving safety, and saving valuable staff time.

Read More →
An orgnge, white, and black graphic with a black and white image of electric school buses.
Alternative Fuelsby Elora HaynesJanuary 14, 2026

Alt-Fuel Moves: Manufacturing Growth & Energy Storage Expansion

Check out some of the latest moves where alternative fuels and school buses intersect, including manufacturing expansions, major funding awards, and energy storage strategies.

Read More →
Ad Loading...
A man connecting a Zenobē charger to a school bus.
ManagementDecember 12, 2025

Electric School Bus Financing: Making Fleet Transitions Operationally Sustainable for the Long Haul

Electric school bus success hinges on long-term planning, which means smart financing, battery management, and service-based models that keep fleets reliable for years.

Read More →
An orgnge, white, and black graphic with a black and white detail shot of lights on a school bus.
Alternative Fuelsby Elora HaynesDecember 8, 2025

Alt-Fuel Moves: New V2G Tech and Electric Bus Rollouts

Check out some of the latest moves where alternative fuels and school buses intersect, including new product announcements and bus deployments across the U.S.

Read More →
Row of yellow school buses parked in a lot with the Nuvve logo and an electric charging icon overlaid in the foreground.
Alternative Fuelsby News/Media ReleaseDecember 1, 2025

Nuvve Strikes Deal to Electrify N.M. District School Buses

Nuvve’s latest partnership in New Mexico aims to help districts transition to electric school buses while strengthening local grid reliability.

Read More →
Ad Loading...
A black and white image of a Thomas Built Wattson bus with text reading "Electric Buses: Progress, Promise, and the Practical Road Ahead."
Alternative FuelsNovember 21, 2025

Electric School Buses: Progress, Promise, and the Practical Road Ahead

The push for electric school buses grows, but real-world hurdles mean districts are adopting EVs slowly and mixing them with diesel and propane.

Read More →
South Coast AQMD logo alongside a school bus driving on a roadway, representing new funding to replace diesel buses with zero-emission models for Southern California school districts.
Alternative Fuelsby News/Media ReleaseNovember 20, 2025

California Agency to Fund $78M in New Clean School Buses

South Coast AQMD plans to replace 286 older buses with newer models, plus accompanying infrastructure, across 35 districts in the South Coast Air Basin.

Read More →
Christine Koester from the EPA speaks at a podium with the NASDPTS logo during a conference. A bold graphic reads “EPA Update” with megaphone and lightning bolt icons around her.
Alternative Fuelsby Amanda HuggettNovember 20, 2025

Where EPA School Bus Funding Stands: CSBP, DERA, and Heavy-Duty Grants Update

One program ends, another looks to be reimagined, and the Clean School Bus Program is in a holding pattern — here’s where each EPA program stands and what to expect moving forward.

Read More →
Ad Loading...
Front view of an all-electric Blue Bird school bus.
Alternative Fuelsby StaffNovember 19, 2025

West Aurora District 129 Launches 27 Electric School Buses Backed by Nearly $1M in ComEd EV Rebates

The Illinois district’s new electric bus fleet, supported by EPA grants, ComEd incentives, and Highland Electric Fleets, advances its commitment to sustainable school operations.

Read More →