The Environmental Protection Agency (EPA) announced on Sept. 28 the second rebate funding opportunity available through the 2023 Clean School Bus (CSB) Rebate Program.  

Under the 2023 program, EPA anticipates awarding at least $500 million in rebate funding with the potential to modify this figure based on the application pool and other factors.  

Eligible applicants can receive funding to purchase up to 25 zero-emission and/or clean school buses, along with zero-emission charging infrastructure and eligible workforce development costs.

Those applicants selected may be eligible for Inflation Reduction Act (IRA) tax credits applicable to their bus and infrastructure purchases. For example, the Clean Vehicle tax credits for qualifying school buses are worth up to $40,000.  

EPA is prioritizing applications that will replace buses serving high-need local education agencies, rural areas, tribal school districts funded by the Bureau of Indian Affairs and public school districts receiving basic support payments for students living on tribal land.  

In addition, EPA is committed to ensuring the CSB Program delivers on the Justice40 Initiative that at least 40% of the benefits of certain federal investments flow to disadvantaged communities.  

EPA is extending the 2023 rebate application window to be responsive to stakeholder feedback, including that additional time would be helpful in order to appropriately engage with partners like utilities and school boards ahead of submitting an application. All applications for the 2023 CSB Rebate Program must now be submitted by 3 p.m. on Feb. 14th, 2024.