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

Applications due August 19, 2022.

The U.S. EPA is now accepting applications for the first school bus funding program under the Bipartisan Infrastructure Law of 2021. Rebates are available to replace older school buses with new buses.  At least $250 million is available for electric school bus rebates and an additional $250 million is available for electric, natural gas, or propane school buses.

Eligible Applicants

  • Local 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

Private school bus fleets need to work with an eligible applicant to apply and demonstrate that the bus will serve the school district for at least five years.

Older Bus Replacement

The rebates do 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 of 10,001 lbs or more
  3. Be operational at time of application submission
  4. Have provided bus service to a public school district at least 3 days/week on average in the 2021-22 school year (COVID-related periods of closure excluded)

Funding Overview

  • Applicants can request funding for up to 25 buses
  • Only one application per school district
  • All applicants meeting the eligibility listed above may apply. 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/low-income areas; Tribal schools; and rural areas. The EPA has a list of priority school districts on the Rebate program page.
Maximum Funding Amount per Replacement Bus
School District Prioritization Status Replacement Bus Fuel Type and Size
EV – Class 7+ EV – 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


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 or adding new fuels to your fleet.

Visit the EPA Clean School Bus Webpage