U.S. EPA Announces Nearly $1 Billion in Awards Through Clean School Bus Program Grants Competition

The U.S. Environmental Protection Agency on Jan. 8 awarded nearly $1 billion under its Clean School Bus Program funded by the 2021 Infrastructure Investment and Jobs Act. The agency selected 67 applicants in 280 school districts serving more than seven million students across 37 states. With this, the program has awarded nearly $2 billion, funding about 5,000 electric and low-emission school buses across the nation. The program provides $5 billion over five years (FY 2022-2026) to replace existing buses with zero-emission and low-emission models.

Following an extensive review process, the program selected top tier applicants to receive the grants. The funds will support the purchase of more than 2,700 clean school buses, of which, 95 percent will be electric. Prioritized school districts in low-income, rural, and/or tribal communities represent about 86 percent of the projects selected for the grants. The initiative supports President Biden’s Justice40 Initiative, which aims to deliver 40 percent of the overall benefits of certain federal investments to disadvantaged communities.

Last April, EPA announced the availability of at least $400 million in grants for 2023 under the program, but due to strong demand and large number of high-scoring applications, the agency nearly doubled the amount of funding in that round to about $965 million. The awards follow over $875 million committed to new buses from the program’s 2022 rebates, which helped replace 2,366 buses at 372 school districts to improve air quality, advance environmental justice, and lower emissions.

The initiative includes a grant program that awards funds to selected applicants for the purchase of buses, and a rebate program that allows selectees to receive awards prior to the purchase of eligible buses that replace existing buses with clean and zero-emission models. EPA is accepting applications for the 2023 Clean School Bus Rebate Program until Jan. 31.