2021 American Rescue Plan (ARP) Electric School Bus Rebates
NEW: For more information on funding opportunities for clean and zero-emission school buses, learn about the Bipartisan Infrastructure Law Clean School Bus Program.
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The American Rescue Plan Act of 2021 (ARP) appropriated funds to the EPA for “activities that identify and address disproportionate environmental or public health harms and risks in minority populations or low-income populations” under several programs, including the Diesel Emissions Reduction Act (DERA).
The 2021 ARP Electric School Bus Rebates offers $7 million to eligible school districts and private fleet owners for the replacement of old diesel school buses with new electric school buses. Selected applicants that scrap and replace their old diesel buses with new electric buses will receive a rebate of $300,000 per bus.<
The 2021 ARP Electric School Bus Rebates runs concurrently with the annual DERA School Bus Rebates. The table below highlights significant differences between these two rebate programs.
ARP and DERA School Bus Rebates Differences
|
Category |
ARP Electric School Bus Rebates |
DERA School Bus Rebates |
|---|---|---|
|
Eligible Applicants |
Targeted eligibility to underserved school districts, tribal schools, and private fleets serving those schools. |
All public school districts and private fleets serving those schools |
|
Replacement Bus Fuel Type |
Must be electric |
Can be electric, diesel, gasoline, propane, or CNG buses meeting current emission standards |
|
Bus Size |
Old and new buses must be Type C or Type D school buses |
Old and new buses must have Gross Vehicle Weight Rating (GVWR) greater than 10,000 lbs |
|
Rebate Amount |
$300,000 per bus for up to 4 buses for a maximum rebate amount of $1.2 million |
$20,000 - $65,000 per bus depending on fuel type of the replacement bus for up to 10 buses with a maximum rebate amount of $300,000 |
|
Number of Applications |
Eligible applicants can only submit 1 application |
Eligible applicants with fleets larger than 100 school buses can submit up to 2 applications |
Important Dates
|
Activity |
Estimated Date |
|
2021 ARP Electric School Bus Rebates program opened. EPA began accepting applications with scans of titles and registrations submitted to DERARebates@epa.gov |
Wednesday, September 29, 2021 |
|
Held on Wednesday, October 6, 2021 |
|
|
Deadline for emailing applications with scans of bus titles and registrations to DERARebates@epa.gov |
4:00 PM EST Friday, November 5, 2021 |
|
Official selection letters emailed to selectees |
Monday, February 28, 2022 |
|
Deadline for submitting copies of purchase orders for replacement buses and EV chargers |
Tuesday, May 31, 2022 |
|
Deadline for submitting documentation of delivery of replacement buses and EV chargers and scrappage of old buses. EPA will send rebate payment within one month of receipt of complete materials. |
Friday, October 28, 2022 |
Rebate Application Form and Supporting Documents
- 2021 DERA and ARP School Bus Rebates Webinar (pdf)
- 2021 ARP Electric School Bus Rebates Waitlist (pdf)
- 2021 ARP Electric School Bus Rebates Eligibility List (pdf)
- 2021 ARP Electric School Bus Rebates Program Guide (pdf)
-
2021 ARP Electric School Bus Rebates Payment Request Form (pdf)
- Please right-click to save the Payment Request Form pdf to your computer and then open in Adobe Acrobat Reader. You may run into errors if trying to open the pdf in your web browser.
- 2021 ARP Electric School Bus Rebates Frequently Asked Questions (FAQ) - November 3rd, 2021 (pdf)
The Frequently Asked Questions (FAQ) document was updated weekly during the application period. Questions submitted to DERA@epa.gov through Thursday, October 28, including those from the webinar, were added to this document.
Eligible Applicants
- Public school districts listed on the ARP Electric School Bus Rebates Eligibility List (pdf) (10.6 MB, September 2021)
- Districts on the eligibility list are estimated to have 30% or more students living in poverty based on the US Census Small Area Income and Poverty Estimates (SAIPE) School District Estimates for 2019. States with zero school districts that make this cutoff will have one school district with the highest percent of students in poverty represented in the eligibility list.
- Tribal schools
- Private fleets that operate school buses under a contract with an eligible entity listed above
Selection Process
Applicants will be selected in a lottery, with prioritization for one tribal applicant and one applicant from the 10 EPA Regions. Depending on the amount of funds requested, EPA may run out of funds prior to selecting an applicant from each of the 10 EPA Regions.
Eligible Old School Buses to be Replaced
- Used to transport 10+ pre-primary, primary, or secondary school students to or from schools;
- Type C or D diesel school buses powered by a 2006 or older model year engine;
- Owned by applicant or state government without any active liens on the title;
- Operational - Able to start, move in all directions, and have all operational parts;
- Have accumulated at least 10,000 or more miles transporting students over either the previous 12 months or calendar year (Jan. – Dec.) 2019, or have been in use for at least four days per week on average transporting students between 9/1/2019 and 2/29/2020; and
- Engine and chassis must be scrapped before receiving rebate payment.
Eligible Replacement Buses
- Must not be ordered prior to receiving signed EPA selection letter;
- Drivetrain operates solely on battery-electric power;
- Must be a Type C or D school bus;
- Be purchased, not leased or leased-to-own;
- Not funded with any other federal funds or Volkswagen Environmental Mitigation Trust funds; and
- Operate in a similar manner and over similar routes as the original school bus.