EPA awards $30M for clean diesel projects
School buses are among the vehicles being replaced or retrofitted in the latest round of funding for the Diesel Emission Reduction Program, also known as DERA. Sioux Falls (S.D.) School District, for example, is being awarded $450,000 for replacing 18 school buses.

School buses are among the vehicles being replaced or retrofitted in the latest round of funding for the Diesel Emission Reduction Program, also known as DERA.
WASHINGTON, D.C. — The U.S. EPA announced on Thursday that it is awarding $30 million for clean diesel projects as part of its “ongoing campaign to reduce harmful diesel exhaust that can lead to asthma attacks and premature deaths.”
School buses are among the vehicles being replaced or retrofitted in the latest round of funding for the Diesel Emission Reduction Program, also known as DERA.
Here are details on some of the pupil transportation-related projects:
• The Colorado Department of Public Health and Environment is being awarded $700,000 for retrofitting an estimated 186 diesel school buses with diesel oxidation catalysts, crankcase filtration systems and fuel-operated heaters.
• The Maine Department of Environmental Protection is getting $1.39 million for replacing four school buses with compressed natural gas buses and for repowering two vessels with two marine propulsion and four auxiliary engines to Tier 3.
• The Idaho Department of Environmental Quality is being awarded $290,000 for retrofitting 12 school buses and 20 pieces of construction equipment with pollution control devices.
• Sioux Falls (S.D.) School District is being awarded $450,000 for replacing 18 school buses.
• Aldine Independent School District in Houston is getting $1.04 million for retrofitting 65 school buses with diesel particulate filters.
To view the full list of projects that have been awarded for fiscal year 2012, go here.
The EPA said that winners were selected based on proposals' potential for maximizing health and environmental benefits by targeting areas that have significant air quality issues.
“Reduced air pollution from diesel engines in these areas can have a direct and significant impact on community health,” the agency said.
DERA was enacted in 2005. Since it was first funded in fiscal year 2008, the EPA has awarded more than 500 grants nationwide. According to the agency, these projects have "reduced hundreds of thousands of tons of air pollution and saved millions of gallons of fuel.”
In September, the EPA announced its first-ever rebate program (also under DERA). The pilot will focus specifically on replacing older school buses. The agency said it anticipates that the rebate application acceptance period will start in November.
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 →
