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

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
• Powered by 2006 or older model year engine
• 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

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