EPA to offer rebates in addition to grants to reduce harmful emissions from older, dirtier diesel vehicles. The rebate program has funded vehicle replacements or retrofits for over one thousand vehicles to date. Typically, the rebate application period opens in the fall and projects are completed in less than one year.

2018 DERA School Bus Rebate Program

School buses travel over four billion miles each year, providing the safest transportation to and from school for more than 25 million American children every day. However, diesel exhaust from these buses has a negative impact on human health, especially for children, who have a faster breathing rate than adults and whose lungs are not yet fully developed.

The 2018 School Bus Rebate Program will offer over $9 million to public and private fleet owners for the replacement of old diesel school buses with new buses certified to EPA’s cleanest emission standards. EPA will award selected applicants $15,000-20,000 per bus for scrapping and replacing old buses. 

Important Dates

Rebate Application Form and Supporting Documents

• 2018 DERA School Bus Rebate Program Guide
• 2018 DERA School Bus Rebate Application
• 2018 DERA School Bus Rebate Frequently Asked Questions (FAQ)

The Frequently Asked Questions (FAQ) document will be updated weekly during the application period. Questions and answers submitted through October 30, including those from the webinar, will be added to this document.

Eligible Entities

• Regional, state, or tribal agency that has jurisdiction over transportation and air quality, including school districts and municipalities
• Private entities that operate school buses under a contract with an entity listed above
• Fleets with up to 100 school buses may submit one application listing up to 10 buses for scrappage and replacement
• Fleets with more than 100 school buses may submit up to two rebate applications, each listing up to 10 different buses for scrappage and replacement

Selection Process

• Applicants will be selected in a lottery, with at least one selectee from each state/territory represented in the applicant pool.

Eligible Old School Buses to be Replaced

• Used to transport 10+ pre-primary, primary, or secondary school students to school or homes
• Driven 10k or more miles over the last 12 months or in use 3+ days/week during the school year
• Owned by applicant without any active liens
• Class 3-8 diesel-powered buses [greater than 10,000 lb Gross Vehicle Weight Rating (GVWR)]
• Buses powered by 2006 or older model year engines must be replaced with buses powered by a 2017 or newer model year engine
• Engine and chassis must be scrapped before receiving rebate payment

Eligible Replacement Buses

• Powered by a 2017 or newer model year engine. Eligible replacement buses may operate on diesel, gasoline, battery, or alternative fuels.
• Operate in a similar manner and over similar routes as the bus being replaced
• Be purchased, not leased or leased-to-own 
• Rebate reimbursement is $15,000 for replacement buses between 10,001-19,500 lbs. GVWR and $20,000 for replacement buses with GVWR of 19,501 lbs. or higher