On May 20, the U.S. Environmental Protection Agency announced that $500 million is being made available this summer for a new Clean School Bus Rebate Program funded by the Bipartisan Infrastructure Law.

The program is set to receive $5 billion over the next five years for the purchase of zero-emission school buses.

The first round will offer $250 million in rebates for exclusively zero-emission school buses, and $250 million in rebates for cleaner, alternative-fuel school buses, including battery-electric, propane and compressed natural gas.

Zero-emission buses will allow school districts to reduce fossil fuel use and greenhouse gas emissions, thereby improving air quality around schools and in neighborhoods. Zero-emission buses are also less costly to operate than diesel buses.

The Biden-Harris administration acknowledged the need to address heavily polluting buses to combat climate change, especially in overburdened and underserved areas, so the EPA plans to prioritize applications from high-need, low-income, rural and Tribal school districts.

To participate in the 2022 Clean School Bus Rebate Program, school districts may submit one application each to request direct funding to replace up to 25 buses. Rebate award amounts are dependent on the bus fuel type and size, as well as the priority of the school district served.

Rebates for replacement range from $15,000 to $375,000, with associated infrastructure funding ranging from $13,000 to $20,000. Applicants will be selected for funding through a random lottery process.

The application period is open through Aug. 19, with selection status notifications expected in October. The EPA has created a web-based application process.

The EPA Region 1 team will be hosting a webinar overview of the program and application process on May 31 at 10 a.m. The EPA has also released a Clean School Bus rebates webinar presentation.

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