In September, the Environmental Protection Agency (EPA) opened another round of funding under the Clean School Bus Program (CSBP). The current application period runs from September 26, 2024, through January 9, 2025, at 4 p.m. ET. This current round of funding is formulated as a “Rebate Program” that NSTA members seem to prefer over competitive grant programs. The EPA anticipates awarding up to $965 million to fund new, zero-emission and other clean school buses in this rebate offering.

According to the EPA website:

“The Bipartisan Infrastructure Law of 2021 authorizes the EPA to offer rebates to replace existing school buses with clean and zero-emission models. The 2024 Clean School Bus Rebates process includes SAM.gov account registration, rebate application submission, review and selection by the EPA, selectees will then submit purchase orders to request payment and then receive payment, which is followed by new bus delivery, existing bus replacement, and project close out. The program guidance and application process differ from prior EPA school bus rebate programs, so please review the summary of program requirements below and the detailed Program Guide before proceeding.”

In previous rounds of funding, NSTA members have gathered a wealth of information as grants and rebates have been awarded for deployment of zero emission (ZE) - electric school buses (ESBs), and we are getting closer to a point where a significant number of buses are actually being delivered under the program. Like anything else, the industry needs further operational experience in order to fully understand the ins and outs of routine ESB usage, and right now, we are not there yet, but we are inching closer.

Also noteworthy is the existence of funding through the CSBP Rebate for nearly-zero emissions vehicles like propane or compressed natural gas (CNG) buses, under the same replacement criteria as ESBs — that being bus operators are applying to replace a 2010 or older diesel bus with a new cleaner vehicle. Potential applicants should be aware that the rebate scale varies greatly for vehicle replacement in the zero emissions realm (ESBs) versus the nearly zero emissions realm (CNG, propane). 

For example, buses serving school districts that meet one or more prioritization criteria vary significantly in their respective rebate scales. For Class 7+ ZEs applicants can receive up to $325,000 (bus + charging infrastructure), but for similarly situated replacements with propane, a rebate of up to $35,000 is available. Class 7+ buses transitioning to CNG can receive up to $45,000 in this prioritization classification. 

The rebates drop significantly for Class 7+ school buses serving other eligible school districts that are not prioritized, with the ESB rebate dropping down to $170,000, while propane and CNG are at $25,000 and $30,000, respectively.

The EPA notes that funding levels as outlined previously do not reflect EPA funding available for ADA-compliant wheelchair lifts, EPA funding for shipping costs to non-contiguous U.S. states and territories, nor IRA funding available through IRS-disbursed tax credits for EV bus and infrastructure purchases, so there are other complexities of which potential applicants need to be aware. 

There is one other area that applicants of which should be aware, and that’s the Build America, Buy America (BABA) Act, and how this law interfaces with the Clean School Bus Program. On its website, the EPA states:

“Applicants should be aware that Build America, Buy America (BABA) requirements apply to electric vehicle chargers and associated equipment, products, and materials eligible for funding under this Program, including BESS. All applicants should plan to purchase American-made charging infrastructure products (see Appendix A of the 2024 CSB Rebate Program Guide for additional information). Please note that the EPA has determined that although school buses are not covered by BABA, the EPA encourages applicants to consider purchasing domestically produced buses where feasible.”

We acknowledge that this is a complex program, so you need assistance, please know that one of the values of membership is that NSTA can always point you in the right direction. 

Drop me a line at president@yellowbuses.org, and we can get you connected with the person or information that can make a difference for your fleet.