Sustainability/Business Continuity

EPA Offering $400M to Fund Green School Bus Fleets

The U.S. Environmental Protection Agency (EPA) is offering more funding to help school districts across the country make the switch to alternative fuel bus fleets. In late April, the agency launched a $400 million round of grants under its Clean School Bus Program, with applications due by Aug. 22.

The funding is made possible by the Bipartisan Infrastructure Law, which allotted $5 billion over five years for the program. This is the program’s first round available as grants and follows the nearly $1 billion awarded through a rebate competition last year.

EPA Administrator Michael S. Regan said, “President Biden’s Investing in America agenda is already transforming school bus fleets across the nation, passing on cost savings to districts while improving air quality. With new grant funding available, we will accelerate our work to transition to electric and low-emission school buses further and faster than ever before.”

Funding Details

The $400 million grant opportunity through the Clean School Bus Program will fund electric, propane, and compressed natural gas (CNG) buses that will produce either zero or low tailpipe emissions compared to their older diesel predecessors.

The EPA is prioritizing applications that will replace buses serving high-need local education agencies, Tribal school districts funded by the Bureau of Indian Affairs or those receiving basic support payments for students living on Tribal land, and rural areas.

In addition, the EPA said it is committed to ensuring the Clean School Bus Program delivers on the Biden administration’s Justice40 Initiative to ensure that at least 40% of the benefits of certain federal investments flow to disadvantaged communities. Large school districts with communities of concentrated poverty also will be prioritized if their proposal focuses on clean school buses serving those communities.

Eligible applicants for this funding opportunity are (1) state and local governmental entities that provide bus service; (2) public charter school districts, (3) Indian Tribes, Tribal Organizations, or Tribally-controlled Schools, (4) Nonprofit School Transportation Associations, and (5) Eligible Contractors (including OEMs, Dealers, School Bus Service Providers, and Private Bus Fleets).

Applicants have two options to apply:

  1. Applicants seeking to serve a single school district can apply through the School District Sub-Program to request a minimum of 15 school buses and up to a maximum of 50 school buses.
  2. Applicants seeking to serve at least four school districts can apply through the third-party Sub-program to request between 50 school buses and up to a maximum of 100 school buses.

The EPA will provide a combined funding amount to cover both bus and infrastructure costs for all awardees requesting electric school buses. Prioritized applicants may apply for up to $395,000 when applying for larger school buses and associated infrastructure, and other applicants may apply for up to $250,000 for larger school buses and associated infrastructure.

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To encourage federal funding to support the replacement of as many buses as possible, the EPA will also offer points in the competition to those who can offer voluntary funding through public-private partnerships, grants from other entities, or school bonds.

The EPA noted it worked closely with the U.S. Department of Labor (DOL) to ensure this program also supports the workforce needed to support a clean energy economy. Applicants will be asked to describe their plans to conduct workforce planning to ensure current drivers, mechanics, and other essential personnel receive training to safely operate and maintain the new buses, as well as clarify protections to ensure existing workers are not replaced or displaced.

Electric vehicle charging infrastructure must be installed by electricians certified by the Electric Vehicle Infrastructure Training Program (EVITP) or a comparable program approved by the DOL. Funding from the Clean School Bus program can also be used to support workforce training and certifications such as EVITP.

Grant applications are due by Tuesday, Aug. 22. Questions about applying may be directed to CleanSchoolBus@epa.gov. To learn more about the grant program, applicant eligibility, selection process, and informational webinar dates, visit the EPA’s Clean School Bus Program site here.

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