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.

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

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 →
