On November 15, 2021, President Biden signed the $1.2 trillion Bipartisan Infrastructure Law (BIL). This new law will deliver $550 billion to America’s infrastructure over the next five years, touching everything from bridges and school buses to the nation’s broadband, water and energy systems.
What does this mean for your fleet?
Under Title XI: Clean School Buses and Ferries, the Bipartisan Infrastructure Law (BIL) Clean School Bus Program will supply $5 billion over the next five years for the replacement of existing school buses with zero-emission and clean school buses.
Specifically, $2.5 billion will be dedicated to new zero-emissions or electric school bus purchases. The other $2.5 billion will go toward both electric school buses and cleaner alternative-fuel school buses powered by CNG, propane and biofuels. The funds will be distributed in $1 billion increments annually, $500 million to zero-emissions buses and $500 million to low-emissions buses, over the next five years.
Here’s what you can expect.
Through the Clean School Bus Program, the government can make awards of up to 100% of the replacement cost of your diesel school bus and charging or fueling infrastructure. In addition, the Environmental Protection Agency (EPA) may award funding for bus replacements and infrastructure costs through grants, rebates or contracts to eligible recipients.
Eligible recipients include:
- State or local government entities responsible for providing school bus service to one or more public school systems or for purchasing school buses
- Eligible contractors including for-profit, not-for-profit or nonprofit entities that have the capacity to sell clean school buses, zero-emission buses, charging or fueling infrastructure or other equipment needed to charge, fuel or maintain clean or zero-emission school buses or arrange financing for such sales
- Nonprofit school transportation associations
- Tribes, tribal organizations and tribally-controlled schools responsible for providing school bus service to one or more Bureau-funded schools or for the purchase of school buses
Who will receive priority?
The Infrastructure Bill allows the EPA to prioritize school bus replacements within high-need local education agencies, tribal schools and rural or low-income areas. EPA funding for electric school buses in disadvantaged communities will help support Justice40 goals and provide opportunities for growth that would not be possible without these incentives.
In making awards for low-emission or electric school bus funding, the EPA will consider the following criteria:
- Lowest overall cost of school bus replacements
- Technologies that most reduce emissions
- Local conditions (i.e., the length of bus routes and weather conditions)
- Impact of grants on domestic manufacturing jobs, including parts, components, assembly and overall job impact in underserved communities
- Whether funds awarded will bring new technologies to scale or promote cost parity between old technology and new, particularly for production in the United States
Beyond funding, the EPA will focus on education and outreach efforts within underserved communities, including partnering with stakeholders to reach districts that may have never applied for a federal grant or rebate.
When can I apply?
The EPA is currently developing guidance for applying for these funds. Instructions are expected to release some time before April. In concert with this, the EPA plans to open its first cycle of electric school bus incentives as early as April 2022. The agency will post program updates, including webinars for potential applicants, on the Clean School Bus webpage as they become available.
Here’s how you can apply.
As the Electric Bus Authority, we’ll post regular articles as we receive more information on this grant and other local and national funding opportunities. After the guidance has been released, we’ll help you apply for these incentives. To keep up to date on the Clean School Bus Program and other federal funding for buses, please reach out to your local dealer. Or, for additional school bus news and updates, sign up for our newsletter.
