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EPA Clean School Bus Rebate Program Offers $500 Million in Funding

Sept. 29, 2023

electric school bus

The U.S. Environmental Protection Agency (EPA) announced it has opened the 2023 Clean School Bus (CSB) Rebate Program—the third funding opportunity released under the CSB Program. The 2023 rebate program offers at least $500 million in rebate funding with the potential to modify this figure based on the application pool and other factors.

Funding for the CSB Program is made available under the Bipartisan Infrastructure Law, which provides $5 billion to subsidize the replacement of existing school buses with clean or zero-emission buses that will improve air quality onboard the vehicles, in bus loading areas, and throughout the communities in which they operate.

“This latest round of funding for EPA's Clean School Bus Program builds on the momentum of last year’s rebate program—which funded close to 2,500 school bus replacements—to ensure that every student across the nation has access to a safe, clean, zero-emission ride. School buses are the nation’s largest source of public transportation, and young people will be able to breathe easier as a direct result of this $500 million in funding," said Gabe Klein, executive director of the Joint Office of Energy and Transportation (Joint Office).

EPA is also working closely with the Joint Office to provide school districts with support as they plan for and implement electric school buses into their fleets. CSB Rebate Program applicants and participants can receive technical assistance from the Joint Office through one-on-one meetings, public webinars, and coordination on resource materials.

Eligibility and Prioritization for EPA’s CSB Rebate Program

Eligible applicants can apply to receive funding for the purchase of up to 25 zero-emission and/or clean school buses, along with zero-emission charging infrastructure and eligible workforce development costs. Selectees may be eligible for Inflation Reduction Act (IRA) tax credits applicable to their bus and infrastructure purchases. For example, the Clean Vehicle tax credits for qualifying school buses are worth up to $40,000.

EPA is prioritizing applications that will replace buses serving high-need local education agencies, rural areas, Tribal school districts funded by the Bureau of Indian Affairs and public school districts receiving basic support payments for students living on Tribal land. In addition, EPA is committed to ensuring the CSB Program delivers on the Biden-Harris Administration’s Justice40 Initiative that at least 40% of the benefits of certain federal investments flow to disadvantaged communities.

Applications for the program are due by 4 p.m. ET on Jan. 31, 2024. Learn more about program eligibility and application requirements.