School Bus Rebate Funding Now Available

On September 30, the U.S. Environmental Protection Agency (EPA) announced approximately $10 million in rebates available to public school bus fleet owners to help them replace older school buses.

The Diesel Emissions Reduction Act (DERA) of 2010 allows EPA to offer rebates in addition to grants to reduce harmful emissions from older, dirtier diesel vehicles. The 2019 DERA School Bus Rebates will offer over $10 million to public and private fleet owners for the replacement of old diesel school buses with new buses certified to EPA’s cleanest emission standards. EPA will award selected applicants $15,000-20,000 per bus for scrapping and replacing old buses.

Old school buses eligible to be replaced include those:

  • Used to transport 10+ pre-primary, primary, or secondary school students to school or homes

  • Driven 10,000 or more miles over the last 12 months or in use 3+ days/week during the current school year

  • Owned by applicant without any active liens

  • Class 3-8 diesel-powered buses greater than 10,000 lb. Gross Vehicle Weight Rating (GVWR)


Buses must be powered by 2006 or older model year engine

  • Engine and chassis must be scrapped before receiving rebate payment

The eligible replacement buses must be powered by a 2017 or newer model year engine and may operate on diesel, gasoline, battery, or alternative fuels. They need to operate in a similar manner and over similar routes as the bus being replaced. The rebate reimbursement is $15,000 for replacement buses between 10,001-19,500 lbs. GVWR and $20,000 for replacement buses with GVWR of 19,501 lbs. or higher. Applicants will be selected in a lottery, with at least one selectee from each state/territory represented in the applicant pool.

The deadline for emailing is Wednesday, October 30, 2019 by 4 p.m. eastern time. Applications must include scans of bus titles and registrations. Complete details can be found here.

This information was published originally by CALSTART.

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