EPA to Revamp Electric School Bus Program
WASHINGTON — The Environmental Protection Agency (EPA) is set to reform its electric school bus initiative, which has $2.3 billion in taxpayer funds available. The agency plans to introduce alternative fuel options through new grants using these remaining resources.
On Thursday, EPA officials will seek input from school administrators, fleet operators, manufacturers, and producers regarding various energy sources, including “biofuels, compressed natural gas, liquefied natural gas, and hydrogen.” The aim is to ensure these alternatives provide “more reliable” energy for buses nationwide.
“Today, EPA is taking the next step to get the plan right,” stated EPA Administrator Lee Zeldin. He emphasized that Americans can move forward with confidence in the program’s safety and effectiveness while relying on American energy sources.
The process will kick off with a Request for Information (RFI), targeting all involved parties. The goal is to allocate billions in subsidies for school bus fleets starting in 2026, adhering to the 2021 Authorization Act established under former President Biden.
The Clean School Bus Program, funded with $5 billion from the bipartisan Infrastructure Act, aims to replace thousands of traditional school buses with zero-emission alternatives.
According to EPA officials, this Biden-era bill will permit rebates for both all-electric vehicles and alternative fuels, ensuring compliance with clean air laws while providing subsidies.
However, it’s noted that around 90% of the allocated funds have been directed towards financing all-electric buses.
A 2023 audit raised concerns about “potential fraud, waste, and abuse” within the program, leading to the cancellation of $38 million in ineligible rebate requests.
Additionally, one manufacturer, Lion Electric, faced bankruptcy in 2024 after exhausting $160 million in tax credits.
So far, $2.7 billion has been distributed to 1,152 school districts to transition to 8,236 electric buses, though numerous projects faced shutdowns due to manufacturing issues.
In New York City alone, over $61 million was allocated to develop 180 all-electric buses for five school districts, costing about $295,000 to $395,000 per bus, though the actual production numbers remain unclear.
New York school districts received $210 million from this initiative but managed to produce only 150 buses, resulting in a striking replacement cost of approximately $318,452.45 per unit.
The public comment period for the RFI will last 45 days before the new rebate process is implemented.
“Like many programs from the Biden era, the Clean School Bus Program has been marked by inefficient management and squandered taxpayer funds,” Zeldin remarked. “The Trump EPA is committed to eliminating reckless spending.”
Parents and stakeholders have raised concerns that electric buses often lack adequate heating during winter months, are susceptible to breakdowns, and put significant financial strain on school districts.
As the comment period opens, these issues will likely be front and center in discussions about the program’s future.
