Electric school buses are becoming more common across America, thanks in large part to the federal government.
Congress allocated $5 billion for energy-efficient alternatives to traditional diesel buses as part of the 2022 Bipartisan Infrastructure Law, a massive spending package aiming to curb the environmental effects of climate change. The Environmental Protection Agency is in several rounds of , awarded at random using a lottery system, and , awarded to applicants that demonstrate the highest need.
The program hasn鈥檛 been without hiccups. Some school districts have rejected the money the federal government has awarded them to help pay for electric school buses.
But thousands of districts have moved forward with using their federal funds to help them with electric bus purchases. And dozens are going back for seconds.
Roughly two-thirds, or 8,000, of the 12,000 electric school buses that districts nationwide are either currently operating or have concrete plans to operate were funded through the EPA鈥檚 Clean School Bus Program, according to a by the nonprofit World Resources Institute鈥檚 Electric School Bus Program. .
Eighty-nine districts in more than 30 states, as well as the District of Columbia, Puerto Rico, and American Samoa, received EPA funds for electric school buses during at least two of the three award cycles that have played out so far, according to data collected by the WRI鈥檚 Electric School Bus Initiative.
鈥淲e have seen a fair number of those repeat customers,鈥� said Sue Gander, the director of that initiative. 鈥淭hose folks are having a good experience.鈥�
Why some districts didn鈥檛 want the federal money they got
Districts applied for $4 billion worth of rebates during the initial 2022 offering of $500 million. The agency ended up granting nearly twice that amount鈥�$965 million鈥攖o meet the high demand.
But out of more than 400 districts that were awarded rebates, 54 opted to reject them, according to the EPA. In total, those districts rejected $74 million worth of funding that would have gone toward 190 electric buses and 32 propane buses.
Why would a district turn down free money from the federal government? For some, like the , the issue was simple math, according to local news coverage. In order to receive the money, the district would have had to pay the difference between the rebate amount and the much-larger total cost of the bus, according to the .
Electric buses on average cost roughly $350,000, several times more than the cost of a traditional diesel bus. Long-term costs for electric buses are typically lower, because they don鈥檛 depend on costly diesel fuel. But some districts don鈥檛 have the cash to shell out upfront.
The Batesville district in Arkansas turned down its $365,000 award for one electric bus because community members wanted the school system to prioritize finishing construction on a cafeteria project that has gone over budget before making new investments, the . Federal funds wouldn鈥檛 have covered charging infrastructure, which can
Other districts were daunted by the process of installing charging infrastructure and dealing with the potential limitations of an electric bus on a single charge. Most electric buses can , though the exact range differs depending on terrain and weather.
鈥淲e don鈥檛 want to do something now that we鈥檙e going to have to undo in two years because it was done too quickly without enough due diligence and enough planning,鈥� said Victoria Walker, the superintendent of the Onteora Central schools in upstate New York, during a school board meeting last fall, . The district rejected $8 million from the EPA.
The phenomenon of districts rejecting clean school bus rebates hasn鈥檛 fazed advocates like Gander. She still sees significant progress and plentiful opportunities for more.
The federal program 鈥済ot a slow start because the rules were still being developed,鈥� Gander said. 鈥淣ow, it鈥檚 fully operational.鈥�
Demand for electric buses is likely to persist
Indeed, the EPA reports no districts have rejected funds they鈥檝e been awarded in the second and third rounds of clean school bus funding鈥� and . They still have until later this year to send their money back.
The EPA reported in a that it鈥檚 taking steps to address concerns that arose during the first rebate cycle. The agency has launched initiatives to help school board members understand how electric buses work and to facilitate connections between school districts and local utility providers for help installing charging infrastructure.
The Internal Revenue Service has in the meantime launched a separate process by which districts can get money back from the federal government for investments in electric school buses. Through the 鈥渄irect pay鈥� program, the average district can apply for 30 percent of the total cost of an electric bus investment, and some districts in higher-need areas can get a discount worth up to 70 percent.
That money comes in the form of 鈥渢ax credits.鈥� Since districts don鈥檛 pay taxes, it amounts to a check, no strings attached. The is offering unlimited tax credits to school districts and other applicants through 2030.
Districts are likely to continue seeking funding for energy-efficient school buses. States including California, Maryland, and New York are requiring districts to shift away from diesel buses in the coming years. Several more states, like and , have launched grant programs of their own.
One district鈥攖he Clayton County schools in Georgia鈥攕ecured EPA funds during all three cycles, for a total of 100 buses. All told, funding for more than 450 buses is going to districts that already secured EPA rebates during the first round.
