ARP Joins DERA to Fund Purchases of Cleaner School Buses

October 1, 2021

A electric school bus being charged. Interest in electric is expanding across the U.S.

The American Rescue Plan (ARP) passed earlier this year offers a new funding opportunity for school districts to purchase cleaner school buses, joining and the Diesel Emissions Reduction Act, which opened the application period for is most recent pot school bus rebate money.

The U.S. Environmental Protection Agency (EPA) is accepting applications nationwide for $10 million in DERA rebates to assist in replacing older diesel school buses with newer ones. The funds will offer between $20,000 o $65,000 to replace old diesel with new electric, propane, CNG, diesel or gasoline school buses.

To be eligible for DERA funds, applicants must be regional, state or tribal agencies that have jurisdiction over transportation and air quality. This includes public school districts and municipalities.

Private entities that operate school buses under contract with an entity are also eligible. Fleets with up to 100 buses can only submit one application listing no more than 10 buses. However, if they have more than 100 buses, they may submit up to two applications, each listing up to 10 buses.

Meanwhile, the ARP Electric School Bus Rebates is offering approximately $7 million to school districts and private fleet owners that are eligible for old diesel school bus replacement. ARP is granting $300,000 per new electric bus, with a maximum of four bus awards per application.

Those that are eligible to apply for ARP are districts that have an estimated 30 percent or more students living in poverty, based on the U.S. Census Small Area Income and Poverty Estimates Program. Tribal schools and private fleet that operates school buses under a contract with an eligible entity.