Application Period Now Open for $500 Million Clean School Bus Rebate Program

Applications due January 31, 2024, by 3pm Central Time.

The U.S. Environmental Protection Agency (EPA) is currently accepting applications for the 2023 Clean School Bus (CSB) Rebate Program. The 2023 CSB rebate program offers at least $500 million in rebate funding for clean school buses and zero-emission (ZE) school buses with the potential to modify this figure based on the application pool and other factors.

Eligible Applicants

  • Local or state governmental entities that provide bus service, such as public school districts.
  • Indian Tribes, Tribal organizations, or Tribally controlled schools that own buses or provide for service.
  • Eligible contractors, including school bus dealers and original equipment manufacturers (OEMs).
  • Nonprofit school transportation associations.

Older Bus Replacement

The rebates require an older bus be replaced in the process, with specific requirements dependent on the new bus’s fuel type. Older buses that will be scrapped must:

  1. Be vehicle model year 2010 or older and powered by diesel, with some exceptions for applicants applying for new electric school buses. For the zero emission school bus replacements, if the fleet does not have diesel buses older than 2010, the fleet can either:
    • Scrap 2010 or older buses powered by a fuel other than diesel (i.e. gasoline or propane); or
    • Scrap, sell, or donate a 2011 or newer internal combustion engine buses.
  2. Have a gross vehicle weight rating of 10,001 lbs. or more.
  3. Be fully operational at time of application submission.
  4. Have provided bus service to the public school district listed on the application at least 3 days/week on average in the 2022/2023 school year, excluding emergency-related closures.

Funding Overview

  • Applicants can request funding for replacing up to 25 buses.
  • School districts applying directly for funds may only submit one application to replace up to 25 buses; districts that contract with multiple private fleets may list more than one private fleet in their application; other eligible applicants may submit multiple applications, but each application must be for buses serving a different school district.
  • All applicants meeting the eligibility listed above may apply, but some school districts can receive higher levels of funding. Under the Bipartisan Infrastructure Law, the priority school districts eligible for higher funding levels are high-need school districts; Rural school districts; and Bureau of Indian Affairs-funded school districts. The EPA has a list of priority school districts available.
Maximum Funding Amount per Replacement Bus
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 $345,000 (Bus + charging infrastructure) $265,000 (Bus + charging infrastructure) $45,000 $30,000 $35,000 $30,000
Buses serving other eligible school districts that are not prioritized $200,000 (Bus + charging infrastructure) $145,000 (Bus + charging infrastructure) $30,000 $20,000 $25,000 $20,000

 

Learn More

More information on the rebate program is available on the EPA’s Clean School Bus webpage. Please contact us if we can help while you consider a project or you have any questions about the program.