Biden Administration to Implement a $1 Billion Program to Transform School Bus Fleet

The Biden administration on Oct. 25 announced the recipients of $1 billion awards funded by the 2021 Infrastructure Investment and Jobs Act for purchasing 2,463 clean school bus fleets by 389 school districts across the U.S. The 2021 Infrastructure Investment and Jobs Act permits the U.S. Environmental Protection Agency (EPA) to offer rebates for replacing current school buses with clean and zero-emission fleets to lessen harmful emissions from older conventional-fueled buses. The investment will act as a growth driver in boosting domestic manufacturing, creating jobs, and creating demand for U.S-made batteries.

The initial funding opportunity of $500 million through the EPA launched on May 20, 2022, and closed on August 19, 2022. Given the outstanding responses from school districts looking for zero-emission school bus fleets, EPA raised the funding amount to $965 million from a previously announced $500 million.

As of Oct. 26, EPA has selected a total of 389 applicants totaling about $913 million to purchase 2,463 clean bus fleets. Ninety five percent of this will be electric, and 99 percent of the applicants come from the agency’s priority areas, which include low-income, rural, and recognized tribal areas. The agency is reviewing more applications and intends to utilize the full funding amount of $965 million. The recipients who have been awarded can buy the bus fleet and reimburse the purchase amount by submitting purchase orders and payment request forms to the agency. In order to monitor the effective implementation of the clean bus program, the agency is cooperating with school districts for technical assistance.

The EPA is expected to launch the second round of funding opportunities worth $1 billion for clean school bus fleets in Fiscal Year 2023 in the upcoming month, which will include a go-getting grant competition. Those who have not been selected in the first round of funding opportunities or who have not applied can participate in the upcoming funding cycles.

The Clean School Bus Program, launched in May 2022, intends to phase out diesel engines, thereby ensuring cleaner air for students, school staff, and school drivers. The clean bus fleets will also help in reducing greenhouse gas emissions and are aligned with President Biden’s Justice40 Initiative.