EPA DERA School Bus Rebates (2021 Annual Program)

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

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