Funding Amount

$20,000 - $65,000 per bus depending on fuel type (up to 10 buses, maximum $300,000)

Deadline

Rolling / Open

Grant Type

foundation

Overview

EPA 2021 DERA School Bus Rebates

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

Funding Source: Diesel Emissions Reduction Act (DERA)

Purpose: Provide rebates for replacement of old diesel school buses with new clean fuel school buses.

Geographic Scope: National program

Eligible Applicants:

  • All public school districts

  • Private fleets serving public school districts
  • Eligible Buses to Replace:

  • Must have Gross Vehicle Weight Rating (GVWR) greater than 10,000 lbs

  • Powered by diesel engines
  • Eligible Replacement Buses:

  • Must have GVWR greater than 10,000 lbs

  • Can be powered by:

  • - Electric - meets current emission standards
    - Diesel - meets current emission standards
    - Gasoline - meets current emission standards
    - Propane (Autogas) - meets current emission standards
    - CNG (Compressed Natural Gas) - meets current emission standards

    Rebate Amount:

  • $20,000 - $65,000 per bus depending on replacement fuel type

  • Up to 10 buses per applicant

  • Maximum rebate: $300,000 per applicant
  • Key Differences from ARP Program:

  • Broader Eligibility: All public school districts eligible (not limited to high-poverty districts)

  • Fuel Flexibility: Multiple fuel options (electric, diesel, gasoline, propane, CNG)

  • Multiple Applications: Fleets larger than 100 buses can submit up to 2 applications

  • Higher Per-Bus Limits: Up to 10 buses (vs. 4 for ARP)
  • Important: Fleets cannot use funding from both ARP and DERA programs on the same bus replacements

    How to Apply

    Application Process

    1. Check Eligibility
    - Confirm applicant is public school district or private fleet serving public schools
    - Verify buses meet GVWR and condition requirements

    2. Submit Application
    - Email to: DERARebates@epa.gov
    - Include scans of bus titles and registrations
    - Simple one-page application process

    3. Selection Process
    - One-time drawing once deadline received
    - Applicants selected sequentially until funds exhausted
    - Will fund at least one project in every state (if application received)

    4. Application Materials:
    - Details similar to ARP program
    - Contact EPA for current year deadlines and application materials

      Known Program Features:

    • Simple one-page application
    • Sequential funding until exhausted
    • Open to all school systems
    • Runs concurrently with ARP Electric School Bus Rebates program

    Focus Areas & Funding Uses

    Fields of Work

    k-12-schoolsenergy-efficiencyenvironmental-education

    Categories

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