EPA CLEAN SCHOOL BUS REBATE PROGRAM - APPLICATIONS OPEN
Posted by admin on May. 25, 2022 / Electric Vehicles, Propane, CNG, Clean Fuels Funding, Awards & Grants / Subscribe 0
Overview:
On May 20, 2022, the United States Environmental Protection Agency (EPA) opened applications for the Clean School Bus Rebate Program, which will fund clean and zero-emission school buses. The deadline for applications is August 19, 2022. The EPA expects to award approximately $500 million in awards during this first round of funding, though up to $1 billion is allowable under the Infrastructure Investment and Jobs Act. $250 million is available for the purchase of "clean school buses" which are propane, CNG, or electric buses, and a further $250 million is available for the purchase of "zero-emission", battery electric buses. Rebates can fund up to 100% of the cost of a project, but cannot exceed project cost nor the maximum funding levels in the chart below.
This rebate program will require applicants to scrap one model year 2010 or older diesel school bus to be replaced by the alternative fuel bus, a requirement that mirrors the requirements of the Diesel Emissions Reduction Act (DERA) and Volkswagen Settlement programs. While this first project period is structured as a rebate program similar to the DERA program, future rounds of funding under the Clean School Bus Program may be structured differently.
Eligible Applicants:
- State and local governmental entities that provide bus service
- Public school districts, including charter schools, with an NCES District ID are eligible to apply directly for funding.
- Most State governmental entities would not be eligible to apply, but some, like South Carolina, own bus fleets and would be eligible.
- Eligible contractors - Eligible contractors are for-profit, not-for-profit, or nonprofit entities that have the capacity to (1) sell clean or ZE school buses or related charging or fueling infrastructure to school bus owners or (2) arrange financing for such a sale.
- School bus dealers and original equipment manufacturers (OEMs) that meet these criteria are eligible contractors.
- Nonprofit school transportation associations
- Indian tribes, tribal organizations, or tribally controlled schools responsible for the purchase of school buses or providing school bus service for a Bureau of Indian Affairs (BIA) funded school
Private school bus fleets cannot apply directly for funding. However, eligible applicants listed above can enter into a contractual arrangement with a private fleet that owns and operates buses to replace buses that serve a public school district.
Eligible projects:
To be eligible as a replacement, new buses must:
- Have a battery-electric, CNG, or propane drivetrain
- Be EPA certified vehicle model year 2021 or newer
- Have a Gross Vehicle Weight Rating (GVWR) of 10,001 lbs. or more
- Not be ordered prior to receiving official notification of selection for EPA funding
- Be purchased, not leased or leased-to-own
- Serve the school district listed on the application for at least five years from the date of delivery
For a complete list of eligibility requirements for new buses, see the Program Guide.
Maximum Funding Levels for Buses and Infrastructure:
| School District Prioritization Status | Replacement Bus Fuel Type and Size | |||||
|---|---|---|---|---|---|---|
| ZE – Class 7+ | ZE – Class 3-6 | CNG – Class 7+ | CNG – Class 3-6 | Propane – Class 7+ | Propane – Class 3-6 | |
| Buses serving school districts that meet one or more prioritization criteria | $375,000 | $285,000 | $45,000 | $30,000 | $30,000 | $25,000 |
| Buses serving other eligible school districts | $250,000 | $190,000 | $30,000 | $20,000 | $20,000 | $15,000 |
(ZE - Zero-Emission; CNG - Compressed Natural Gas)
| School District Prioritization Status | ZE – Class 3+ Infrastructure Funding |
|---|---|
| Buses serving school districts that meet one or more prioritization criteria | $20,000 |
| Buses serving other eligible school districts | $13,000 |
Dates:
| Activity | Date |
|---|---|
| 2022 Clean School Bus (CSB) Rebates open. EPA begins accepting online application submissions here. | May 20, 2022 – August 19, 2022 |
| EPA reviews applications and begins the selection process. | September 2022 |
| EPA notifies applicants of selection status and posts list of applicants and selectees online. Selectees can proceed with purchasing new buses and eligible infrastructure. | October 2022 |
| Selectees submit Payment Request Forms with purchase orders demonstrating that new buses and eligible infrastructure have been ordered. | October 2022 – April 2023 |
| Project period deadline for selectees to receive new buses, install eligible infrastructure, replace old buses, and submit Close Out Forms. | October 2024 |
APPLICATION ASSISTANCE:
If you need assistance, we would love to help in any way we can! In anticipation of this funding announcement and other funding programs coming down the line, we recently hosted a Grant Readiness Webinar (recording available here) in partnership with Clean Fuels Ohio, East Tennessee Clean Cities Coalition, and the Center for Sustainable Energy. The webinar discusses best practices for preparing for grant programs, designing projects, and getting involved with project partners early.
If you would like any assistance with applications and/or project implementation, feel free to reach out to Tyler Herrmann at [email protected] or (504) 858-1706.
For more information: EPA's Clean School Bus Program Main Page
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