EPA Announces Nearly $900M Awarded in Latest Clean School Bus Rebate

Another 3,000 electric school buses will soon be on our nation’s roads

May 29, 2024

Electric school buses line up for the Green Bus Summit ride-and-drive event during STN EXPO Indianapolis on June 5, 2023. (Photo by Vincent Rios Design.)

The U.S Environmental Protection Agency (EPA) announced the recipients of the 2023 Clean School Bus Program (CSBP) rebate competition, resulting in 531 school districts spanning 47 states, Washington, D.C., and several tribes and U.S. territories. The total amount awarded is over $875 million to replace older, diesel-fueled school buses.

Of the 3,441 clean school buses that are to be purchased with the funds, 92 percent are earmarked for EVs. Prioritized school districts in low-income, rural and tribal communities make up approximately 45 percent of the selected projects and will receive approximately 67 percent of the total funding, the EPA stated.

This is the third installment of the CSBP, which will provide a total of $5 billion over five years — fiscal years 2022 through 2026 — to replace diesel buses with zero- and low-emission buses. To date. the program has awarded 1,270 school districts a total of $2,712,719,000 to replace 8,535 school buses.

Earlier this year, EPA announced the recipients of the CSBP grant, which resulted in a total of $965 million awarded to 280 school districts nationwide for 2,737 low- and zero-emissions school buses. All but 62 of those school buses are electric with the remaining being powered by propane.

“President Biden believes every child deserves the opportunity to lead a healthy life and breathe clean air, and his Investing in America agenda is designed to deliver just that,” stated EPA Administrator Michael Regan in a statement on Wednesday when announcing the awards. “With today’s latest round of funding, we are transforming the nation’s school bus fleet to better protect our most precious cargo, our kids, saving school districts money, improving air quality, and bolstering American manufacturing all at the same time.”

The 2023 rebate closed in February with an “overwhelming” response from school districts. Due to the demand, the EPA stated it doubled the initial funding amount to nearly $1 billion. The EPA added it is continuing to review selected applications and may make additional awards.

Among those selected this year include several contractors applying on behalf of school districts. First Student, alone, is receiving $200 million in rebates, half of the the total amount the company has won so far from the EPA Clean School Bus Program. Meanwhile, Fast-growing contract Zum Services is receiving over $30 million in funds, including the two single largest monetary amounts, $8.985 million for Reading School District in Pennsylvania and $9.125 million for Spokane Public Schools in Washington.

Electrification-as-a-service contractor Highland Electric is another big winner, accounting for nearly $150 million for school districts in 22 states, and Beacon Mobility’s Van Pool in Massachusetts was awarded over $21 million.

The School District of Philadelphia, home of STN’s 2023 Transportation Director of the Year Teresa Fleming, was awarded funding for 25 EVs. School districts in California won over $91 million.

Find a full list of recipients.

Over 300 school districts are on the rebate waitlist. EPA said they could receive rebates if an awardee does not complete requirements, drops out of the program, or is otherwise deemed ineligible. Fifty-five school districts withdrew from the 2022 rebate awards.

In the meantime, the EPA is currently accepting applications for the 2024 Clean Heavy-Duty Vehicles Grant Program through July 25, with up to $652 million in grant funding available for Class 6 and 7 electric school buses.