EPA’s Clean School Bus Rebate Program

The Bipartisan Infrastructure Law of 2021 authorizes EPA to offer rebates to replace existing school buses with clean and zero-emission (ZE) models. The 2022 Clean School Bus (CSB) Rebates process includes SAM.gov account registration, application submission, review and selection by EPA, purchase order submission and request for payment, payment receipt, new bus delivery and old bus replacement, and close out.

Eligible Applicants

The following entities are eligible to apply for EPA school bus rebates:

  1. State and local governmental entities that provide bus service
    • Public school districts, including charter schools, with an NCES District IDEXIT EPA WEBSITE are eligible to apply directly for funding.
    • Most State governmental entities would not be eligible to apply, but some, like South Carolina, own bus fleets and would be eligible.
  2. Eligible contractors – Eligible contractors are for-profit, not-for-profit, or nonprofit entities that have the capacity to (1) sell clean or ZE school buses or related charging or fueling infrastructure to school bus owners or (2) arrange financing for such a sale.
    • School bus dealers and original equipment manufacturers (OEMs) that meet these criteria are eligible contractors.
  3. Nonprofit school transportation associations
  4. Indian tribes, tribal organizations, or tribally controlled schools responsible for the purchase of school buses or providing school bus service for a Bureau of Indian Affairs (BIA) funded school

Private school bus fleets cannot apply directly for funding. However, eligible applicants listed above can enter into a contractual arrangement with a private fleet that owns and operates buses to replace buses that serve a public school district.

A goal of the Clean School Bus program is to provide opportunities for as many eligible applicants as possible to participate. We understand that there may be questions about a school district’s eligibility to participate in the 2022 CSB Rebates. If interested applicants have questions about their eligibility after reviewing this webpage and the Program Guide they should contact cleanschoolbus@epa.gov with their specific question.

Note: EPA will be providing additional funding opportunities in the near future and your input will be valuable in helping us design those programs to be as inclusive and effective as possible.

Eligible Old School Buses to be Replaced

To be eligible for replacement, old school buses must:

  1. Be vehicle model year 2010 or older diesel-powered school buses that will be scrapped if selected for funding
    • If a fleet has no eligible 2010 or older diesel school buses and is requesting zero-emission school bus replacements, the fleet can either:
      1. Scrap 2010 or older non-diesel internal combustion engine buses; or
      2. Scrap, sell, or donate 2011 or newer internal combustion engine buses
  2. Have a Gross Vehicle Weight Rating (GVWR) of 10,001 lbs. or more
  3. Be operational at the time of application submission – Able to start, move in all directions, and have all operational parts
  4. Have provided bus service to a public school district for at least 3 days/week on average during the 2021/2022 school year at the time of applying, excluding COVID-related school closures

Eligible New Replacement Buses

To be eligible as a replacement, new buses must:

  1. Have a battery-electric, CNG, or propane drivetrain
  2. Be EPA certified vehicle model year 2021 or newer
  3. Have a Gross Vehicle Weight Rating (GVWR) of 10,001 lbs. or more
  4. Not be ordered prior to receiving official notification of selection for EPA funding
  5. Be purchased, not leased or leased-to-own
  6. Serve the school district listed on the application for at least five years from the date of delivery

For a complete list of eligibility requirements for new buses, see the Program Guide.

Available Funding

  • Applications can request funds for replacing up to 25 buses.
  • For the 2022 CSB Rebates, EPA anticipates offering $250 million for clean school buses and $250 million for zero-emission school buses. EPA may award more funding depending on demand and other considerations.
  • School districts applying directly for funds may only submit one application
    • Other eligible applicants may submit multiple applications, but each application must be for buses serving a different school district. EPA will not fund multiple applications for bus replacements that will serve the same school district.
  • The maximum rebate amount per bus is dependent on (1) the replacement bus fuel type, (2) the replacement bus size, and (3) whether the school district served by the buses is prioritized:

Supporting Materials

Grant Funding Available: Clean School Bus Program

Greetings Valued Educators,
The Houston-Galveston Area Council ‘s Clean School Bus Program is currently accepting applications to replace older buses with new, cleaner buses. There is no deadline; however, funding is very limited. Therefore, please apply as soon as possible. A maximum 10 buses will be replaced per application. School districts that have never applied for funding from H-GAC will be preferred in the application review process.
The goal of the Clean School Bus Program region is to reduce children’s exposure to diesel exhaust and reduce the amount of air pollution created by diesel school buses. Clean School Bus Program aims to reduce pollution from buses through partners from business, education, transportation, and public health organizations. Our program noticed that many of our local school districts applied for grant funding through the Texas Commission of Environmental Quality’s Texas Volkswagen Environmental Mitigation Program. Based on the limited funding ($10.5M allocated to Houston vs $21.5M requested), there will be many projects that will not be funded. We hope to provide those school districts that do not get Volkswagen funds, a chance to replace their buses. It is vital that our students, educators, and all those in between are able to breathe clean air.
Clean School Bus Program is serving the following counties: Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller. These counties are currently in non-attainment for air quality for the air pollutant ozone.
Eligibility Requirements:
• Own vehicle(s) currently operating 75% of mileage in the Houston-Galveston-Brazoria (HGB) ozone nonattainment area (Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller counties)
• Agree to destroy old chassis and engine with an H-GAC-approved salvage vendor
• Purchase brand new vehicle(s) similar in size and weight to the vehicle being destroyed
• Commit to continuing operating the new vehicle(s) at the same mileage as the old vehicle(s)
• Have site visits to view any and all vehicles under for consideration in the program
• NOT perform grant work (purchase, or destroy vehicles) without a contract with H-GAC
• Commit to reporting quarterly on mileage, fuel use, and maintenance information for 5 years after reimbursement
To apply, please visit our website. You can submit all questions and applications to CleanVehicles@h-gac.com. You can also give us a call at 713-993-2488.

Replace or repower your drayage truck or cargo handling equipment with a TERP Grant

The Texas Commission on Environmental Quality is preparing to open the Seaport and Rail Yard Areas Emissions Reduction Program, a grant program under the Texas Emissions Reduction Plan Program. TCEQ will be has posted a workshop presentation for review.
The purpose of the SPRY program is to encourage individuals and entities operating at designated seaports and Class I rail yards in Texas’ nonattainment areas to replace or repower their older on-road vehicles, non-road yard trucks, or other cargo handling equipment with new models.
Applicants may be eligible for funding up to 80% of the cost to replace or repower eligible vehicles and equipment if, for at least two years preceding the submission date of the application, the applicant has:
  • Owned or leased the on-road vehicle, non-road yard truck, or other cargo handling equipment eligible to be replaced under the program; and
  • Operated the vehicle or equipment at one or more of the designated seaports or rail yards for a minimum of 200 days of operation per year for the preceding two years.
Designated seaports include terminals and facilities located in the Port of Houston (including the participating facilities of the Houston Ship Channel Security District), Port of Galveston, and Port Freeport.
Designated Class I rail yards include terminals and facilities located in the Dallas-Fort Worth area, Bexar County, Houston-Galveston-Brazoria area, and El Paso area.
Please share with anyone who might be interested.
For program opening information, sign up for email updates at www.terpgrants.org.
Have questions? Contact TCEQ toll-free at 800-919-TERP (8377) or by email at terp@tceq.state.tx.us.