EPA Clean School Bus Program (2021 ARP Electric School Bus Rebates)

Q: When is the deadline for EPA Clean School Bus Program (2021 ARP Electric School Bus Rebates)?

This grant has a rolling deadline or the deadline has not been announced.

Foundation One-time Grants for K-12 Schools Energy Efficiency Grants Environmental Justice Grants Environmental Education Grants

Funding Amount

$300,000 per bus (up to 4 buses for maximum of $1,200,000)

Deadline

Rolling / Open

Grant Type

foundation

Overview

EPA 2021 ARP Electric School Bus Rebates

Administrator: U.S. Environmental Protection Agency (EPA)

Funding Source: American Rescue Plan Act of 2021 (ARP)

Background: EPA appropriated funds under the American Rescue Plan Act for activities that identify and address disproportionate environmental or public health harms and risks in minority populations or low-income populations under the Diesel Emissions Reduction Act (DERA).

Purpose: Provide rebates for replacement of old diesel school buses with new electric school buses in underserved communities.

Geographic Scope: National program with focus on underserved communities

Total Funding: $7 million nationally

Eligible Applicants:

Primary: Public school districts listed on the ARP Electric School Bus Rebates Eligibility List

- Districts estimated to have 30% or more students living in poverty based on US Census Small Area Income and Poverty Estimates (SAIPE) for 2019
- States with zero qualifying districts will have one district (highest poverty percentage) represented

Secondary: Tribal schools

Tertiary: Private fleets operating school buses under contract with eligible entities above

Eligible Buses to Replace:

Type C or D diesel school buses

Used to transport 10+ pre-primary, primary, or secondary school students to/from schools

Owned by applicant or state government without active liens

Operational (able to start, move in all directions, all parts functional)

Accumulated at least 10,000+ miles transporting students OR in use at least 4 days/week between 9/1/2019-2/29/2020

Engine and chassis must be scrapped before rebate payment

Eligible Replacement Buses:

Must be Type C or D school bus

Drivetrain operates solely on battery-electric power

Must be purchased (not leased or leased-to-own)

Not funded with other federal funds or VW Environmental Mitigation Trust funds

Must be ordered AFTER receiving EPA selection letter

Operate in similar manner and over similar routes as original bus

Rebate Amount: $300,000 per bus

Limitations:

Up to 4 buses per applicant

Maximum rebate: $1,200,000 per applicant

Fleets cannot use funding from both ARP and DERA programs on same bus replacements

How to Apply

Application Process

1. Check Eligibility
- Verify school district appears on 2021 ARP Electric School Bus Rebates Eligibility List (PDF provided)
- Confirm buses meet age and operational requirements

2. Submit Application
- Email to: DERARebates@epa.gov
- Include scans of bus titles and registrations
- One application per eligible applicant (fleets >100 buses may submit up to 2)
- Simple one-page application process

3. Selection Process
- Lottery-based selection
- Prioritization for one tribal applicant
- Prioritization for one applicant from each of 10 EPA Regions
- Funding available until exhausted

4. Key Dates (2021 Timeline):
- Late September 2021: Program opens, EPA begins accepting applications
- Early October 2021: Webinar for applicants
- Early November 2021: Application deadline
- 1Q 2022: Selection letters emailed to selectees; list of non-selected applicants posted online
- 2Q 2022: Deadline for purchase orders for replacement buses and EV chargers
- 4Q 2022: Deadline for delivery documentation and scrappage proof; EPA sends rebate payment within one month

5. Supporting Documents
- 2021 ARP Electric School Bus Rebates Eligibility List (PDF)
- 2021 ARP Electric School Bus Rebates Program Guide
- 2021 ARP Electric School Bus Rebates Application
- 2021 ARP Electric School Bus Rebates Frequently Asked Questions (FAQ)

6. Post-Selection Requirements
- Provide copies of purchase orders (2Q 2022)
- Submit delivery documentation and scrappage proof (4Q 2022)
- Proof of EV charger purchase and installation
- Proof of old bus scrappage

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