To help save money and be more eco-friendly, many schools have installed solar energy and made other sustainability upgrades, including green transportation.

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. The agency has launched a $965 million round of rebates under its Clean School Bus Program, with applications due by Jan. 9, 2025.

The funding is made possible by the Bipartisan Infrastructure Law, which allotted $5 billion over five years for the program. The program funds zero- and low-emission buses, including electric, propane, and compressed natural gas (CNG) vehicles, which produce lower tailpipe emissions and can be less expensive to maintain and fuel compared to their older diesel predecessors.

‘Tremendous Interest’

Under the program’s multiple grant and rebate opportunities to date, the EPA has awarded almost $3 billion to fund approximately 8,700 school bus replacements, approximately 95% of which are zero-emission, battery-electric vehicles. In fact, the program is now responsible for over two-thirds of the committed electric school buses across the country.

Funding has so far been awarded to nearly 1,300 school districts in nearly all 50 states and Washington, D.C., along with several federally recognized Tribes and U.S. territories, many of which are identified as priority areas serving low-income, rural, or Tribal students.

“Over the past three years, we’ve seen tremendous interest from schools across the country to upgrade to clean and zero-emission buses,” said EPA Administrator Michael S. Regan. “Thousands of new buses on the road mean our children are breathing cleaner air on their way to and from school, their communities are seeing cleaner air and less climate pollution, and schools are supporting good-paying American jobs.”

Funding Details

For this latest round of rebates, school districts can request up to $325,000 per bus for up to 50 buses per application. According to the EPA, this is an increase in the total number of buses eligible in response to stakeholder feedback for larger projects to help achieve faster fleet turnover. Funds can be used to cover bus and infrastructure costs for awardees requesting electric school buses, as well as training costs for bus drivers, electricians, and others working with the new buses or infrastructure.

Selectees may also be eligible for Inflation Reduction Act tax credits applicable to their bus and infrastructure purchases. For example, the clean vehicle tax credits for qualifying school buses are worth up to $40,000.

Applications for rebates are due on the EPA online portal by 4 p.m. ET on Jan. 9, 2025. More information about the To learn more about the Clean School Bus Program is available here.

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