Rebates Available for Alternative Fuel School Buses

Greater Indiana is here to help you!

If you are interested in transitioning to an alternative fuel school or transit bus, we’re here to help! Greater Indiana works with vehicle manufacturers, utilities, as well as fuel and charging providers to schedule demonstration events for your team to learn more about how you can integrate alternative fuel vehicles into your fleet!

Contact Kaylee May, [email protected], to find out how we can help you transition your fleet!

Find out about the rebates and other investment opportunities currently available for school and transit buses below.

FTA Buses and Bus Facilities Program

The Federal Transit Administration’s (FTA) Buses and Bus Facilities Program is open with $409.6 million available. Transit buses of all weight classes and fuel types are eligible. The buses must provide services to the general public and they must comply with the FTA’s Buy America Requirements.

The deadline is November 19, 2021. Find out more information about this opportunity in this summary document from PERC.

2021 U.S. EPA DERA School Bus Rebates 

The 2021 DERA School Bus Rebates will offer approximately $10 million to public and private fleet owners for the replacement of old diesel school buses with new buses certified to EPA’s cleanest emission standards. Selected applicants that scrap and replace their old diesel buses will receive a rebate of $20,000-$65,000 per bus depending on the fuel type of the replacement bus. The maximum amount of funding that can be requested per application is $300,000.

The deadline is November 5, 2021 (4 PM EST) for emailing applications with scans of bus titles and registrations to [email protected].

Eligible Applicants

• Regional, state, local, or tribal agency that has jurisdiction over transportation and air quality, including public school districts and municipalities
• Private entities that operate school buses under a contract with an entity listed above
• Fleets with up to 100 school buses may submit one application listing up to 10 buses for scrappage and replacement
• Fleets with more than 100 school buses may submit up to two rebate applications, each listing up to 10 different buses for scrappage and replacement

Selection Process

• Applicants will be selected in a lottery, with at least one selectee from each state/territory represented in the applicant pool.

Eligible Old School Buses to be Replaced

• Used to transport 10+ pre-primary, primary, or secondary school students to or from schools
• Diesel school buses powered by a 2006 or older model year engine
• Gross Vehicle Weight Rating (GVWR) of 10,001 lbs or more
• Owned by the applicant or state government without any liens on the title
• Operational – Able to start, move in all directions, and have all operational parts
• Have accumulated at least 10,000 or more miles transporting students over either the previous 12 months or calendar year (Jan.-Dec.) 2019, or been in use for at least four days per week on average transporting students between 9/1/2019 and 2/29/2020.

Eligible Replacement Buses

• Must not be ordered prior to receiving signed EPA selection letter
• Powered by a 2017 or newer model year engine, or operate solely on electricity
• Be purchased, not leased or leased-to-own
• Not funded with any other federal funds or Volkswagen Environmental Mitigation Trust Funds
• Operate in a similar manner and over similar routes as the original school bus
• Meet Federal safety standards.

Rebate reimbursement is based on the fuel type of the replacement bus:

• $20,000 for diesel and gasoline
• $25,000 for propane
• $30,000 for CNG/LNG
• $65,000 for battery or hydrogen electric
• Maximum rebate funding amount per application is $300,000

More details here: https://www.epa.gov/dera/rebates

2021 American Rescue Plan (ARP) Electric School Bus Rebates for Underserved School Districts

For 2021, in addition to the annual DERA School Bus Rebates detailed below, EPA is offering separate rebates for electric school bus replacements in underserved communities funded by the 2021 American Rescue Plan (ARP).

The newest program is the 2021 American Rescue Plan (ARP) Electric School Bus Rebates. This $7 million program exclusively funds the replacement of old diesel school buses with new electric school buses for underserved school districts, tribal schools, and private fleets serving those schools. A list of eligible school districts is available on the 2021 ARP Electric School Bus Rebates website. Please check the list to see if you qualify for this new funding opportunity. This new program will offer $300,000 per bus for up to four electric school bus replacements for eligible applicants selected in a lottery process.

For more details on the 2021 ARP Electric School Bus Rebates, including a table comparing the DERA and ARP programs, click here.