Title 42, The Public Health and WelfareRelease 119-110

§16091 Clean School Bus Program

Title 42 › CHAPTER 149 — NATIONAL ENERGY POLICY AND PROGRAMS › SUBCHAPTER VII — VEHICLES AND FUELS › Part C — Clean School Buses › § 16091

Last updated Sep 23, 2026|Official source

Summary

Requires the EPA Administrator to run a program that gives competitive grants, rebates, and contracts to help replace old school buses with cleaner buses or zero-emission buses. Key terms: Administrator = EPA Administrator. Alternative fuel = liquefied natural gas, compressed natural gas, hydrogen, propane, or biofuels. Clean school bus = a bus that the EPA says cuts emissions and uses an alternative fuel, or a zero-emission bus. Eligible contractor = a business or nonprofit that can sell, lease, finance, or service buses and charging/fueling equipment. Eligible recipient = local or State school authorities, eligible contractors, nonprofit school transport groups, charter schools buying buses, or Indian Tribes/tribal schools. High-need local educational agency = a school district the Secretary of Education identifies as having many low-income students. Zero-emission school bus = a bus with a drivetrain that makes no exhaust pollution or greenhouse gases. The EPA must split available money so 50% goes to replacing buses with zero-emission buses and 50% goes to replacing buses with clean or zero-emission buses. Awards can cover up to 100% of bus and charging/fueling infrastructure costs. The EPA will pick projects based on cost, local needs (route length, weather), emission reductions, and whether the project helps scale new technology. The agency can give priority to buses serving high-need districts, Bureau-funded schools, Indian land, rural or low-income areas, or projects that add other funding. Buses bought with program money must stay in the buying fleet for at least 5 years, be maintained and charged/fueled per instructions, and not add pollution through things like unvented diesel heaters. The EPA must try to spread awards nationwide, limit any State to no more than 10% of yearly funds, and report to Congress by January 31 each year on applications and awards. Within 120 days after November 15, 2021, the EPA had to start an outreach program with stakeholders to explain the awards, technologies, costs, infrastructure planning, and workforce training. The EPA can use up to 3% of funds each year for administration and may issue rules and guidance. The program is funded at $1,000,000,000 per year for fiscal years 2022 through 2026, with $500,000,000 for clean and zero-emission buses and $500,000,000 specifically for zero-emission buses.

Full Legal Text

Title 42, §16091

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Definitions
In this section: (1) Administrator (2) Alternative fuel
(3)Clean school bus
The term “clean school bus” means a school bus that—
(A)the Administrator certifies reduces emissions and is operated entirely or in part using an alternative fuel; or
(B)is a zero-emission school bus.
(4)Eligible contractor (5) Eligible recipient
The term “eligible contractor” means a contractor that is a for-profit, not-for-profit, or nonprofit entity that has the capacity—
(A)to sell, lease, license, or contract for service clean school buses, zero-emission school buses, charging or fueling infrastructure, or other equipment needed to charge, fuel, or maintain clean school buses or zero-emission school buses, to individuals or entities that own, lease, license, or contract for service a school bus or a fleet of school buses; or
(B)to arrange financing for such a sale, lease, license, or contract for service.
(6)High-need local educational agency
The term “high-need local educational agency” means a local educational agency (as defined in section 7801 of title 20) that is among the local educational agencies in the applicable State with high percentages of children counted under section 6333(c) of title 20, on the basis of the most recent satisfactory data available, as determined by the Secretary of Education (or, for a local educational agency for which no such data is available, such other data as the Secretary of Education determines to be satisfactory).
(7)School bus
The term “school bus” has the meaning given the term “schoolbus” in section 30125(a) of title 49.
(8)Zero-emission school bus
The term “zero-emission school bus” means a school bus that is certified by the Administrator to have a drivetrain that produces, under any possible operational mode or condition, zero exhaust emission of— (A)
(B)any greenhouse gas.
(b)Program for replacement of existing school buses with clean school buses and zero-emission school buses
(1)Establishment
The Administrator shall establish a program—
(A)to award grants and rebates on a competitive basis to eligible recipients for the replacement of existing school buses with clean school buses;
(B)to award grants and rebates on a competitive basis to eligible recipients for the replacement of existing school buses with zero-emission school buses;
(C)to award contracts to eligible contractors to provide rebates for the replacement of existing school buses with clean school buses; and
(D)to award contracts to eligible contractors to provide rebates for the replacement of existing school buses with zero-emission school buses.
(2)Allocation of funds
Of the amounts made available for awards under paragraph (1) in a fiscal year, the Administrator shall award—
(A)50 percent to replace existing school buses with zero-emission school buses; and
(B)50 percent to replace existing school buses with clean school buses and zero-emission school buses.
(3)Considerations
In making awards under paragraph (2)(B), the Administrator shall take into account the following criteria and shall not give preference to any individual criterion:
(A)Lowest overall cost of bus replacement.
(B)Local conditions, including the length of bus routes and weather conditions.
(C)Technologies that most reduce emissions.
(D)Whether funds will bring new technologies to scale or promote cost parity between old technology and new technology.
(4)Priority of applications
In making awards under paragraph (1), the Administrator may prioritize applicants that—
(A)propose to replace school buses that serve—
(i)a high-need local educational agency;
(ii)a Bureau-funded school (as defined in section 2021 of title 25); or
(iii)a local educational agency that receives a basic support payment under section 7703(b)(1) of title 20 for children who reside on Indian land;
(B)serve rural or low-income areas; or
(C)propose to complement the assistance received through the award by securing additional sources of funding for the activities supported through the award, such as through—
(i)public-private partnerships;
(ii)grants from other entities; or
(iii)issuance of school bonds.
(5)Use of school bus fleet
All clean school buses and zero-emission school buses acquired with funds provided under this section shall—
(A)be operated as part of the school bus fleet for which the award was made for not less than 5 years, except that, if the award is to an eligible contractor and the contract with the local educational agency (including charter schools operating as local educational agencies under State law) ends before the end of the 5-year period, those school buses may be operated as part of another local educational agency eligible for the same or higher priority consideration under paragraph (4), subject to the limitations under paragraph (7);
(B)be maintained, operated, and charged or fueled according to manufacturer recommendations or State requirements; and
(C)not be manufactured or retrofitted with, or otherwise have installed, a power unit or other technology that creates air pollution within the school bus, such as an unvented diesel passenger heater.
(6)Awards
(A)In general
In making awards under paragraph (1), the Administrator may make awards for up to 100 percent of the costs for replacement of existing school buses with clean school buses, zero-emission school buses, and charging or fueling infrastructure.
(B)Structuring awards
In making an award under paragraph (1)(A), the Administrator shall decide whether to award a grant or rebate, or a combination thereof, based primarily on how best to facilitate replacing existing school buses with clean school buses or zero-emission school buses, as applicable.
(7)Deployment and distribution
(A)In general
The Administrator shall—
(i)to the maximum extent practicable, achieve nationwide deployment of clean school buses and zero-emission school buses through the program under this section; and
(ii)ensure a broad geographic distribution of awards.
(B)Limitation
The Administrator shall ensure that the amount received by all eligible entities in a State from grants and rebates under this section does not exceed 10 percent of the amounts made available to carry out this section during a fiscal year.
(8)Annual report
Not later than January 31 of each year, the Administrator shall submit to Congress a report that evaluates the implementation of this section and describes—
(A)the total number of applications received;
(B)the quantity and amount of grants and rebates awarded and the location of the recipients of the grants and rebates;
(C)the criteria used to select the recipients; and
(D)any other information the Administrator considers appropriate.
(c)Education and outreach
(1)In general
Not later than 120 days after November 15, 2021, the Administrator shall develop an education and outreach program to promote and explain the award program under this section.
(2)Coordination with stakeholders
The education and outreach program under paragraph (1) shall be designed and conducted in conjunction with interested stakeholders.
(3)Components
The education and outreach program under paragraph (1) shall—
(A)inform potential award recipients on the process of applying for awards and fulfilling the requirements of awards;
(B)describe the available technologies and the benefits of using the technologies;
(C)explain the benefits and costs incurred by participating in the award program;
(D)make available information regarding best practices, lessons learned, and technical and other information regarding—
(i)clean school bus and zero-emission school bus acquisition and deployment;
(ii)the build-out of associated infrastructure and advance planning with the local electricity supplier;
(iii)workforce development, training, and Registered Apprenticeships that meet the requirements under parts 29 and 30 of title 29, Code of Federal Regulations (as in effect on December 1, 2019); and
(iv)any other information that is necessary, as determined by the Administrator; and
(E)include, as appropriate, information from the annual report required under subsection (b)(7).
(d)Administrative costs
The Administrator may use, for the administrative costs of carrying out this section, not more than 3 percent of the amounts made available to carry out this section for any fiscal year.
(e)Regulations
The Administrator shall have the authority to issue such regulations or other guidance, forms, instructions, and publications as may be necessary or appropriate to carry out the programs, projects, or activities authorized under this section, including to ensure that such programs, projects, or activities are completed in a timely and effective manner, result in emissions reductions, and maximize public health benefits.
(f)Authorization of appropriations
There is authorized to be appropriated to the Administrator to carry out this section, to remain available until expended, $1,000,000,000 for each of fiscal years 2022 through 2026, of which—
(1)$500,000,000 shall be made available for the adoption of clean school buses and zero-emission school buses; and
(2)$500,000,000 shall be made available for the adoption of zero-emission school buses.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2022—Subsec. (a)(4)(A). Pub. L. 117–328, § 405(1)(A)(i), inserted “, lease, license, or contract for service” after “to sell” and after “that own”. Subsec. (a)(4)(B). Pub. L. 117–328, § 405(1)(A)(ii), inserted “, lease, license, or contract for service” before period at end. Subsec. (a)(5)(A)(i)(II). Pub. L. 117–328, § 405(1)(B)(i), inserted “, lease, license, or contract for service” after “purchase”. Subsec. (a)(5)(A)(iii) to (v). Pub. L. 117–328, § 405(1)(B)(ii)–(iv), added cl. (iv) and redesignated former cl. (iv) as (v). Subsec. (a)(5)(A)(v)(II). Pub. L. 117–328, § 405(1)(B)(v), inserted “, lease, license, or contract for service” after “purchase”. Subsec. (b)(5)(A). Pub. L. 117–328, § 405(2), inserted before period at end “, except that, if the award is to an eligible contractor and the contract with the local educational agency (including charter schools operating as local educational agencies under State law) ends before the end of the 5-year period, those school buses may be operated as part of another local educational agency eligible for the same or higher priority consideration under paragraph (4), subject to the limitations under paragraph (7)”. 2021—Pub. L. 117–58 amended section generally. Prior to amendment, section related to program for retrofit or replacement of certain existing school buses with clean school buses.

Reference

Citations & Metadata

Citation

42 U.S.C. § 16091

Title 42, The Public Health and Welfare

Last Updated

Sep 23, 2026

Release point: 119-110