BusBoss Transportation Software Blog

Funding Opportunities Back to Replace Diesel School Buses

Written by Sonia Mastros | 11/29/24 6:00 PM

At this point, there's little doubt that Electric Vehicles (EVs) are the new future of motor transportation. Sales of EVs continue to rise, and governments around the world are increasingly looking to promote their adoption.

This is true of school buses as well. Electric school buses are cleaner, cheaper to run, easier to maintain, and they may even improve test scores by protecting children from harmful diesel emissions. Previous worries about temperature and range have largely been overcome. For the wide majority of districts, electric buses could serve just as well as traditional diesel engines.

There's just one problem: paying for the new buses. Electric buses aren't that much more expensive than internal-combustion models, but many districts simply don't have the money for new buses at all. Fortunately, government initiatives are helping with the costs - and possibly the most helpful of them is now accepting new applicants.

The issue is once again making headlines, as Congressman Cohen (TN-9) and Senator Duckworth of Illinois have reintroduced the School Bus Safety Act of 2023-24. This bill would mandate seat belts on all large school buses (over 10,000 pounds) as well as a range of other safety equipment.

Currently, there's no telling whether it will survive the legislative process this time. However, is it a good idea? Let's take a look at what the bill does.

The EPA's Clean School Bus Program Is Open Again

Based on the Bipartisan Infrastructure Law of 2021, the Environmental Protection Agency has been authorized to provide significant funding to school districts for the purpose of upgrading to zero-emission buses. Nearly a billion dollars is set to be distributed to districts in 2025.

The EPA's website has all the information you need, but here's an overview of the most important elements:

The most important date is Jan 9, 2025. That is the cutoff for applications. In other words, right now is the time to start investigating the program and prepare your own application.

The program is open to any public school, public charter school, tribal school, and third parties which offer bus services to schools.

To be eligible, the school must be replacing operational buses which run on internal combustion engines, are over 10,000 pounds, and were made prior to 2010. These older buses are required to be scrapped, rather than resold, to qualify for the rebate. In addition, schools may apply if they are retiring internal-combustion buses from after 2011, and those buses could potentially be donated or resold.

As an aside, this means there's an extra benefit to replacing newer internal-combustion buses: your district could potentially make a bit more money from reselling them.

The replacement buses can be electric, or else run on either natural gas or propane. The buses must be purchased new, and be model year 2023 or later. Perhaps most importantly: they must be ordered after receiving approval for EPA funding. If your district has already placed orders for buses to be delivered, unfortunately, they will not qualify for the program.

In addition, the program can provide funding for necessary infrastructure upgrades at the school, such as for electric charging stations or propane storage.

The amount of money a district can receive depends on a number of elements, including how many buses (up to 50), their capabilities, and what infrastructure will be included. The rebates could be anywhere from $30,000 to over $300,000 per vehicle. In addition, a school may be able to receive another $20,000 for buses that must meet ADA requirements for special-needs students.

Funding prioritization will be based on the school's economic status. In other words, low-income districts will have priority.

Now Is the Time to Apply for EPA Funding

Again, the cutoff for applications in January 9, 2025. If your district is interested in buying electric buses in the next year, this is by far your best opportunity to do so. Visit the EPA's website to learn everything you need to know.

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