Presented By IC Bus
The transition to electric school buses is a critical part of creating a cleaner and more sustainable future. However, for many school districts, the shift from diesel to electric is daunting due to the high initial costs of electric vehicles (EVs) and the infrastructure needed to support them. Fortunately, grant funding programs offer financial assistance that can significantly lower the barriers to adopting electric school buses.
The traditional image of a yellow school bus is as American as sliced apple pie. And yet, as environmental concerns grow, so does the demand for cleaner alternatives in school transportation. Electric buses promise to deliver upon this promise with vehicles that reduce emissions, improve air quality, and lower the environmental footprint of school districts. However, the up-front costs of purchasing electric school buses and installing charging infrastructure are steep, and many school districts may not have the resources available to make this investment on their own.
That’s where grant funding comes in. Federal, state, and local programs are stepping up to offer substantial financial support to help districts make the transition. These programs, often paired with incentives from electric utilities and other partners, can make the switch to electric buses more feasible. But for many school districts, navigating the complex world of grant funding can be overwhelming.
Cassie McDonald, grant manager supporting IC Bus said she knows the challenges that districts face when pursuing electric school bus grants.
“It gets pretty overwhelming to try and do a Google search for funding, especially when the transportation industry didn’t exactly apply for grants prior to this,” she said. “This is new to everyone in the industry.”
To make this process easier, IC Bus offer several tools and services that assist school districts in identifying and applying for available grants.
One such tool is the Incentive Prospecting Tool (IPT), which allows users to narrow down grant searches based on their vehicle type and zip code.
“We can help you find what is specific to your area because the grants aren’t just the Environmental Protection Agency (EPA) and federal; there can be state grants, local grants, and utility grants,” McDonald said.
Tools like this allow IC Bus and its Dealer Network to help districts cut through the noise and focus on the funding opportunities that are most relevant to them.
Federal and national funding sources
At the national level, the U.S. EPA plays a vital role in funding electric school buses through its Clean School Bus Program. This program, designed specifically to help school districts transition to cleaner buses, offers billions in funding.
“The biggest one for school buses is the EPA Clean School Bus,” McDonald said. “Round four is to be announced this fall, and we’re hoping it’s going to be a rebate application, which means you don’t have to provide a narrative.”
Rebate applications simplify the process, she said, allowing districts to avoid lengthy grant narratives while still providing the necessary documentation to secure funding.
While the EPA Clean School Bus Program is one of the most well-known sources of funding, there are other federal programs available as well. McDonald noted the importance of keeping an eye on upcoming funding opportunities, especially as new grants and incentives are being introduced regularly.
State, local, and utility-based grants
Federal funding is not the only source of financial assistance for school districts. State and local governments, as well as utilities, often offer grant programs aimed at reducing emissions and promoting clean energy. These grants can vary widely depending on the region, which is why tools like IPT are essential for districts to identify what’s available in their specific area.
“For example, grants in Wyoming are going to be very different from grants in Washington,” McDonald said.
In addition to government grants, utility companies are now offering incentives to support the transition to electric buses. These incentives can cover everything from the purchase of the buses to the installation of charging infrastructure. Partnering with a utility company is often a requirement for many grant applications.
“I haven’t yet met a grant where you don’t have to have some sort of signed agreement,” McDonald said. That agreement says that the utility has come to look at our site, and this is how we’re going to do it.”
The application process
Applying for a grant can be a complicated and time-consuming process, especially for school districts that may not have experience in this area. However, McDonald emphasized that districts don’t have to go it alone. Navistar and other organizations are ready to help guide them through the process, from identifying eligible grants to preparing the application.
“We will help you develop the application, and we have a third party that we use as well,” she said. “You’re not alone in that process.”
Each grant comes with its own set of requirements, and it is important for school districts to be aware of these from the outset.
“Some of the most common things that we see are the routes,” she said. “The funder want to see what communities are going to be benefiting from the lack of diesel in that area.”
In addition to route planning, districts need to establish a partnership with a utility company and provide detailed information on their current fleet.
One key piece of advice that McDonald offered to school districts is to start preparing early. Many grants, particularly those at the federal level, have short application windows once they are announced.
“Once it’s open, you usually only have 90 days to submit that application,” she said. “So it’s best to start thinking about that now.”
Post-award considerations
Securing a grant is only the beginning of the process. After a school district is awarded a grant, they typically have a limited timeframe to sign a contract with the funder, outlining how the money will be spent.
“If you’re awarded the grant, you’ll usually have a limited timeframe to sign a contract agreement with how you’re going to spend that funding,” McDonald said.
In many cases, the funder will require periodic reports on how the grant money is being used and the impact it is having. This means that districts need to have the capability to track and report on key metrics, such as the number of diesel buses removed from service and the environmental benefits of the new electric buses.
“Most grants are going to want to hear how their money was used successfully to get a diesel bus off the road,” McDonald said.
Other financial incentives
While grants are a major source of funding for electric school buses, they are not the only option. McDonald noted that there are other financial incentives available, such as tax credits, that can further reduce the cost of electric buses.
“Not all grants are going to be those narrative ones, and there are other options such as tax credits,” she said. “Every purchase of a commercial electric bus gets you tax credits, even for school districts who technically don’t pay taxes.”
This is an important reminder that school districts should explore all potential avenues for funding and financial support, rather than relying solely on traditional grants. The world of electric vehicle funding is constantly evolving, and new opportunities are emerging all the time.
The Road Ahead
The journey to electrifying a school bus fleet may seem complex, but with the right resources and support, it is a feasible and rewarding process. As more funding becomes available at the federal, state, and local levels, and as organizations like IC Bus continue to provide tools and guidance, school districts have more options than ever to make the switch to electric buses.
McDonald emphasized that the key to success is staying informed and proactive.
“It’s always worth talking to someone like a grant expert to see what all of your options are before you immediately disqualify it,” she said. “You just never know—it’s an ever-evolving funding world with this.”