Last year, the appetite for electric school buses waned. The reason had a lot to do with President Donald Trump retaking the Oval Office and signing numerous executive orders that changed course on the drive toward zero emissions.

The Clean School Bus Program was shelved until recently, with the U.S. Environmental Protection Agency expected at press time to finally announced it would make good on awarding the final $2.5 billion remaining in the five-year $5 million program. Seemingly it comes the official re-emergence of diesel, which had been obvious across all sectors.

Diesel is 90 percent cleaner than it was two decades ago and, while it still emits harmful particulate matter especially for children’s developing lungs, it remains the fuel type of choice for many fleets due to its workhorse and longevity characteristics. That makes federal subsidies for drop-in biodiesel blends, which many school districts have been using for decades, and renewable diesel especially attractive.

Granted, maintaining diesel systems has become more arduous and expensive. And those costs extend to the fuel pump.

Petroleum prices were already volatile, then the Iran war broke out. The Strait of Hormuz closed, and the price of oil soared well past $100 a barrel. Diesel and gasoline prices followed suit globally. Despite the U.S. opening domestic oil reserves, those prices have stayed high, and there is no end in sight. This has spelled doom for school districts and school bus operators.

The National Association for Pupil Transportation and AASA: The Superintendents Association conducted a survey last month that illustrates the impacts. Of the 188 school districts responding, 22 percent said their diesel fuel costs increased by 11- to 20 percent over their current school year budget. Another 20 percent said they
are 6- to 10 percent over budget.

Scott Lee, the director of transportation for Washoe County School District in Nevada, said diesel costs increased a whopping 89 percent from January of this year to May, rising from $3.01 per gallon to $5.69 per gallon. The Reno-area school district, however, seemingly has it better than a lot of states in terms of actual prices being paid. Outside of Portland, Oregon, the Beaverton School District was paying $6.57 per gallon through April, a 38-percent increase from $4.77 paid last July.

The saving grace for school districts like Beaverton and Washoe is a reliance on electric and propane school buses. Craig Beaver, who retires as director of transportation this summer, said the fleet of electric school buses is closing in on the sweet spot of achieving 1.5 kWh per mile efficiency. In April, the school district’s Type C and Type D electric school buses averaged 1.6 kW per mile, the best mark since last October, when the average was 1.59.

Meanwhile, both he and Washoe County’s Lee are also increasingly relying on propane. Lee shared that propane fueling cost remains relatively flat with an increase of 4 percent for fiscal year 2027, at which point the district also is purchasing another six propane school buses for the 2026-2027 school year.

Beaver said he kept the budget the same for the coming school year, as more electric and propane school buses will be on the road at a cheaper cost. This, he added, will hopefully offset the increase in diesel cost per gallon over the course of the year.

“It’s a good plan, as long as the Strait of Hormuz opens up in the next month or two. We will have minimal diesel usage this summer as well,” he shared. “Only use those buses for long trips. Everything else will be EV supplemented by propane.”

Beaverton’s long-term plan includes transitioning all 140 Type D school buses in the fleet to propane over the next five to eight years, once Blue Bird comes to market with an option.

The writing on the wall, no matter the politics at play, is the TCO of both electric and propane pencil out. Despite higher upfront costs, both options are often surpassing diesel in terms of lifetime fuel and maintenance csts. That story was also told at ACT Expo last month, in the 2026 State of Sustainable Fuels report.

With the Clean School Bus Program relaunching and no matter the assumed new funding mechanism for biodiesel and renewal diesel, millions if not billions of dollars will be spent in the coming years to add more electric and propane school buses to the national fleet.

And that is welcome news in a world where fuel volatility and higher new vehicle purchase prices will continue.

Editor’s Note: As reprinted from the June 2026 issue of School Transportation News.

Related: (STN Podcast E308) Past & Future: Fuel Volatility, 10 Years of School Transportation Trends
Related: (STN Podcast E307) Buy With Confidence: Fuel Price Frustration, School Bus Buying Tips
Related: Survey: Half of School Districts Paying At Least 6% More for Diesel
Related: Survey Shows 87% of Parents Support Low-Emissions School Buses, Yet Diesel Dominates

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A joint survey administered by AASA: The School Superintendents Association and the National Association for Pupil Transportation indicates how much rising diesel costs are hurting school district bottom lines, not simply in budgets but also in the classrooms. 

About 54 percent of the 188 school districts that responded to the survey, conducted the week of May 4, said they are paying 6 percent more for diesel since the Iran war started. Fourteen percent reported that diesel costs are running 20 percent or more over budget. Meanwhile, 22 percent have seen their fuel bills increase by 11- to 20 percent over budget and 20 percent said they are 6- to 10 percent over budget.

“The data suggests that many districts have, to date, prioritized limiting impacts on core instructional programs, instead relying on strategies such as route optimization, deferred maintenance and targeted spending adjustments,” NAPT said in an email Monday to members. “While some districts report fuel costs exceeding planned amounts, the overall approach reflects a deliberate effort to manage rising expenses while maintaining stability in educational services.”

Nearly two-thirds of the districts said they are absorbing the rising diesel prices within their current transportation budgets, as their states do not provide dedicated transportation funding that rises with fuel prices. Over 30 percent said they are transferring funds from other district programs, 19 percent are using rainy-day funds, and 15 percent have yet to cover the increased costs.

Consolidating routes/adjusting route efficiency is the leading response to reducing the impact of rising diesel costs, according to 40 percent of the responses. Other operational changes are enforced anti-idling procedures at 27 percent, reducing the number of routes at 25 percent, limiting non-required bus trips (20 percent), and changing fuel purchasing practices at 14 percent. Other responses are increasing walk-to-stop ratios (8 percent), moving away from “yellow bus to non-diesel vehicles” (7 percent), meaning either school buses, vans, SUVs or sedans, an AASA spokesperson clarified for School Transportation News, and negotiating contracts with transportation vendors (6 percent).

Dipping Into Other Programs to Pay for Diesel

Meanwhile, 55 percent of the districts reported that they have yet to implement offsets in their current general budgets to address the fuel price hikes, and 17 percent said they have so far avoided making cuts through the reliance on rainy-day funds. But of those that have, 16 percent have deferred maintenance/facilities work, 13 percent reduced support personnel, 13 percent trimmed administrative staff/spending, and 12 percent reduced summer instruction. Less than 5 percent selected one of the following: Reduced instructional staff; increased class sizes; delayed instructional improvement initiatives; cut extracurricular programs; and cut spending on instructional materials.

While 52 percent of districts said they have yet to address budget cuts or they are still in development, one-third have added a contingency or reserve fund to address fuel volatility. Another 16 percent have negotiated contracts or adjusted vendor terms. Fourteen percent have drawn down reserves, and 10 percent have sought local/state revenue specific to transportation.

To address the next school year’s budget, 37 percent said they are likely to use reserve or rainy-day funds, while 36 percent said they are not sure what their plan will be. Thirty percent are considering cutting athletic/extracurricular transportation, and 29 percent would defer maintenance and facilities. Foregoing professional development or consulting services, or technology purchases and replacements, came in at 22 percent of responses, respectively. Fourteen percent said they could skip purchasing  supplies, materials and textbooks next year, and 6 percent said they would pause instructional staffing and programming.

Despite higher initial purchase costs, alternative-fuel school buses are providing relief at the pump. Bibb County School District near Macon, Georgia is tapping into about $1 million in savings a year from less expensive propane school bus fueling and maintenance to pay for its few dozen gasoline-powered school buses. Director of Transportation Anthony Jackson, who presented the findings earlier this month at ACT Expo in Las Vegas, Nevada, told School Transportation News his staff has not purchased diesel fuel since February.

Related: Propane Autogas Gains Momentum with Low Costs, Near-Zero Emissions, and Ready-Now Innovation
Related: Report Highlights Propane and Electric TCO for School Bus
Related: (STN Podcast E307) Buy With Confidence: Fuel Price Frustration, School Bus Buying Tips

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LAS VEGAS — Is there a world for autonomous school buses, after all? This industry might not have a choice, according to Rivian CEO and founder R.J. Scaringe.

Conversations increased at ACT Expo this week around autonomous commercial vehicles, with several experts indicating during sessions that self-driving trucks powered by AI will explode onto the scene over the coming decade. That point was punctuated Wednesday morning by Scaringe.

“We’re going to see changes that are maybe the most significant from [a] societal impact in the history of the adult world, where we’ll have AI capabilities that can do a very large percentage of tasks that today are done by humans, that’ll free up human bandwidth to do other things,” he said during a main stage fireside chat.

“I’m of the view that we as the humans are going to continue to find higher value ways to use our time,” he added.

Scaringe suggested that over the next decade a “significant portion” of both consumer and commercial vehicles will be electric. And they will be “connected, highly intelligent” and drive themselves.

“And when I say that, I think the important thing to consider is, if you don’t have those things, what does that mean?” he asked the audience. “By 2035, if you’re a large-scale vehicle manufacturer, whether it’s on the consumer side or the commercial side, and you don’t have a connected, highly intelligent platform that’s running the software and electronics vehicle, and the vehicle doesn’t have self-driving capabilities, it’s hard to imagine maintaining market share.”

The question remains will school buses be driving themselves? Based on ACT Expo, where the commercial truck and bus industry leaders gathered, it is looking more likely. Many truck innovations eventually work their way onto and into school buses.

Amid more chatter on the role autonomous will play, notably first for heavy-duty trucking and last-mile delivery, fleets have definitively increased the use of data and connected technologies to drive more ROI, as shown by this year’s State of Sustainable Fleets report released at the conference.

Nearly everyone agrees autonomous technology for school buses won’t mean adult-less routes to and from school with rowdy children left to their own devices. But as Scaringe, opined, autonomous school buses could beg the question of how to redeploy school bus drivers as safety aides. Might that improve the driver shortage that the school bus industry has long suffered with? A leading cause of drivers leaving school districts is student on-board behavior and a real or perceived lack of support in addressing challenges.

Scaringe also discussed his new robotics company, Mind Robotics focused on AI-powered robots for industrial automation, launched earlier this year. The venture is using factory data at Rivian to actively explore human-like capabilities for industrial applications. My mind immediately wandered back to the school bus. Humanoids working with the children? What about the potential implications on how school bus data — and that from other motorists in an increasingly connected world — could further train and automate route operations? A robot blocking traffic to allow students safer passage to and from their bus stops, perhaps?

The sky is the limit.

Re-energized Talks About Electric School Buses

Meanwhile, electric vehicles, which had been the main draw for ACT Expo over the last several years, re-emerged on day three with several exhibit floor presentations about V2G deployment following Scaringe’s talk on the mainstage.

V2G is showing gains, as charge management continues to be a must for fleets. This was evidenced by projects stretching from California and Oregon to New Jersey and New England. Challenges remain, presenters OpConnect, The Mobility House and the New Jersey Department of Environmental Quality admitted. The least of which being how utility providers are setting rates for what school districts can earn for feeding the grid. But the presentations also demonstrated the successes and learned opportunities. Those figures are only expected to increase as the EPA Clean School Bus Program is expected to return this spring.

On Monday after the exhibitor floor opened, Zenobe facilitated a discussion about a complex yet successful school bus electrification project in Massachusetts. It relied on a collaborative effort between Zenobe to identify grants and incentives as well as implement the charging infrastructure alongside school bus contractor Beacon Mobility, OEMs Micro Bird and Thomas Built Buses, Mass CEC and National Grid.

Also on Monday, propane school buses continued to show ROI. Anthony Jackson, director of student transportation for Bibb County Schools in Georgia, shared his experiences with the fuel. Savings from using propane rather than diesel has resulted in savings of nearly $3 million over the last several school years and an over 30 percent decrease in cost per mile in fuel alone, to $0.27 per mile when operating propane compared to $0.39 per mile with diesel. The maintenance savings were even better at a nearly 49-percent reduction, to $0.23 per mile with propane from $0.45 per mile with diesel.

Evident at ACT Expo was the wide reach of connected vehicles and data driving AI activity. That realization, after all, spurred an event rebrand by producer TRC Clean Solutions to expand the acronym that originally stood for advanced clean transportation to encompass AI and autonomous, connected and technology.

Eric Neandross, president of TRC Clean Transportation Solutions, on Tuesday asked an OEM panel, which included International Motors CEO Mathias Carlbaum, if in 25 years their companies will be technology providers rather than simply truck manufacturers. But the answers turned attention back to diesel remaining a major player for decades to come, burning cleaner and cleaner while continuing to supplement battery-electric and all the connected software that goes with it.

Things haven’t changed that much, after all.

Related: Intersection of Autonomous Vehicles and School Buses
Related: Autonomous Vehicle Implications
Related: You Can’t Spell Training Without AI

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LAS VEGAS — As fleet operators wrestle with volatile diesel prices, tightening emissions rules and the steep costs of electrification, a group of industry experts said the answer to cleaner, cheaper operations may be a fuel that has been around for a century: Propane.

During the ACT Expo panel, “A Simpler Path to Lower Costs: How Fleets Use Propane and Renewable Propane,” representatives from a major public transit system, a national propane supplier and a leading alternative-fuel vehicle manufacturer argued that propane — and increasingly, renewable propane — can deliver immediate cost savings and emissions reductions without the infrastructure headaches of electric or compressed natural gas options.

Moderator Mike Finnern, who leads the alternative fuels fleet and facilities group at global engineering firm WSP, framed the Monday session as a reality check for fleet leaders who feel locked into a diesel vs. electric debate.

“In my job, I help a lot of clients convert their fleets from diesel to something else,” Finnern told attendees. “Oftentimes the conversation is around electrification, but that’s hard in a number of different ways. Infrastructure is a big part of it, vehicle costs are a big part of it. One of the things we talk about a lot is: What’s your base goal? Why [do] you want to electrify? Because there are other options, and some of those options can be remarkably compelling.”

Propane Supplier Pushes Carbon Intensity Metric

For Doug Dagan of Suburban Propane, which has been in the propane business for nearly 100 years, the key to understanding propane’s role in the energy transition is shifting the conversation from technology labels to carbon intensity.

“We’re here to talk about the power of propane as a decarbonization and cost-effective solution for fleet vehicles,” Dagan said. “We really think the distinguishing factor for propane is carbon intensity, and that really should be the metric that everyone uses for making decisions about the climate benefits of a fuel.”

Dagan said traditional propane already offers a significantly lower carbon intensity than gasoline and diesel, and emerging renewable propane pathways drive those numbers even lower. Conventional propane, he noted, carries a carbon intensity score of around 80 in many models. Renewable propane produced from certain waste-based feedstocks can land in the 20 to 40 range and in some cases approach net zero, depending on the production method.

Suburban currently supplies propane, renewable propane and renewable natural gas. It is investing in hybrid solutions as well. But renewable propane faces a structural challenge: Like conventional propane, it is largely produced as a byproduct of refining other fuels, such as renewable diesel and sustainable aviation fuel. To expand supply, Dagan said, Suburban is investing in “on-purpose” production, including biogas-based routes that mirror the way renewable natural gas is made.

Despite questions about long-term feedstock volumes, Dagan argued that propane offers something many alternative fuels cannot – stability. While diesel and gasoline prices have spiked sharply during the Iran war and even prior to that, he said, propane has not tracked those swings as closely, because it is not as exposed to global crude dynamics and is abundant in the U.S.

Medium-Duty Fleets Find Real Savings

After Dagan laid out the fueling story, Todd Mouw of ROUSH CleanTech made the business case. Parent company ROUSH, known for its performance engineering heritage, spun up its CleanTech division in 2010 to focus on propane and other alternative powertrains.

“When we first started ROUSH CleanTech, we quickly saw that the pain point for fleets was in Class 4 through 7,” Mouw said. “That’s where diesel was creating a lot of cost and complexity. So, we shifted our focus to medium-duty diesel displacement.”

Mouw said ROUSH now has more than 55,000 propane vehicles on the road across more than 4,000 fleets, logging millions of cumulative miles. Many of these are the Blue Bird Propane Vision. The message to fleet managers, he said, is that the technology is proven, the infrastructure is mature and the economics are compelling.

“In a lot of these applications, even before recent run-ups in fuel prices, you’re saving on the order of 30 to 35 cents a mile vs. diesel,” he said. “You have infrastructure that’s easy and fast to deploy, no impact on payload, range comparable to diesel and engines that are already certified at ultra-low NOx.”

Mouw pointed to looming 2027 federal NOx standards that will further increase the cost and complexity of diesel engines. Against that backdrop, he said, propane powertrains with very low NOx certification allow fleets to get ahead of the curve without the sticker shock and infrastructure delays that often come with electrification.

Florida County’s Paratransit Program Banks Millions with Propane

The proof point came from Paul Strobis, assistant general manager of transportation in Broward County, Florida. He oversees paratransit services for riders with disabilities, which he described as the most expensive service per passenger in the public transit portfolio.

“When I was looking to implement an alternative fuel system, I needed the lowest cost solution that still improved our environment,” Strobis said.

He operates primarily Class 4 and 5 cutaway buses and some sedans, with service delivered under contracts that turn over every five to 10 years. That created a requirement for fueling infrastructure that could be flexible and movable enough to follow private contractors. Heavy, permanent compressed natural gas installations did not fit that model.

“What I found was propane met all of those needs,” he said.

Since launching propane service in January 2015, Broward County has consumed roughly 12 million gallons of propane, Strobis reported. Over about 10 years, taxpayers have contributed about $16.2 million, or an average of $1.34 per gallon. Comparable gasoline for the same service would have cost approximately $29 million, at an average of $2.84 per gallon, he said.

“We’ve saved over $13 million for our taxpayers just on the cost of fuel,” Strobis said.

When federal alternative fuel tax credits were active, Broward’s net cost dropped even further, to under a dollar per gallon. Strobis said his current price is about $1.45 per gallon for propane, compared to more than $4 for gasoline. Fueling times are comparable to gasoline, he added, and his contracted maintenance facilities did not need the costly ventilation and gas-detection upgrades required for CNG shops.

Related: Report Highlights Propane and Electric TCO for School Bus
Related: Panel Shares How Propane School Buses Deliver Students, Savings
Related: Transportation Director Shares How Propane Buses Benefit Special Needs Routes

Electrification, CNG and Safety

The panelists repeatedly contrasted propane with battery-electric and CNG options, particularly on infrastructure.

Dagan said fleets often discover that the grid simply cannot deliver enough power where and when they need it, or that the electrons they do get are not as clean as advertised. In many U.S. markets, he said, charging vehicles with grid power still relies heavily on fossil generation, undercutting environmental benefits. Taking propane straight to the vehicle, he argued, can be both cleaner and more efficient in many cases.

Finnern noted that a propane station can often be installed and operational within weeks, while some large EV charging projects remain bogged down for a year or more.

Tucker Perkins, president of the Propane Education & Research Council, said the emissions profiles of propane and natural gas are similar. But CNG infrastructure costs can be an order of magnitude higher because of the need for high-pressure compressors and specialized equipment. In contrast, propane stations operate at much lower pressures and can sometimes be installed by fuel providers at their own expense in exchange for a fuel contract.

Strobis said one of his early challenges was “managing fears and misconceptions” about propane safety. He recalled an incident two weeks before Broward’s propane buses entered passenger service, when an electrical fire destroyed one of the vehicles. The local fire chief, hearing propane was onboard, allowed the bus to burn rather than approach it, only to later find that the three-quarter-full propane tank had remained intact.

“These systems are built very, very safely,” Strobis said, noting that his insurance costs did not rise with the switch to propane.

Perkins pointed to the school bus market, where propane has gained significant share, as a strong endorsement. He said long-standing codes, standards and formal training for mechanics and drivers underpin the safety record, while children and operators benefit from cleaner air inside and around the vehicles.

Looking ahead, Dagan said the biggest lever for expanding renewable propane will be state and provincial low carbon fuel standards that reward lower-carbon fuels. Programs in California, New Mexico, Oregon, Washington and parts of Canada are already creating value for renewable propane through carbon credits, he said, which should gradually draw more production into the market.

Finnern closed by urging fleets to focus on fundamentals rather than hype.

“At the end of the day, this is about cost, emissions and practicality,” he said. “Propane offers a remarkably compelling balance of all three, and fleets can do it today.”

This article written with the assistance of an AI transcript.

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LAS VEGAS — The Trump administration may have the revoked greenhouse gas (GHG) rules, but student transportation fleets are still barreling toward a major emissions change that will reshape diesel engine technology, maintenance practices and purchasing strategies as soon as Jan. 1, 2027.

That was the clear message from engine and truck executives during Monday’s ACT Expo roundtable, “What the Final Rule Means for Fleets, OEMs & Suppliers.” Cummins and International leaders urged fleets to prepare now for the new low nitrogen oxides (NOx) rules — and not be lulled into complacency by headlines regarding greenhouse gas (GHG) rollbacks.

GHG Push Eases, but NOx Crackdown is Full Speed Ahead

David Hillman, vice president of integrated technology sales at IC Bus parent company International, told attendees that many fleets still misunderstand the regulatory landscape. He said fleets often assume that because federal GHG actions were rescinded, tailpipe rules are off the table. That, he warned, is wrong.

He urged fleets to separate climate-focused GHG policy from criteria pollutant rules such as NOx. The federal GHG “endangerment” framework — which effectively pushed manufacturers toward battery-electric vehicles by requiring rapid fuel-efficiency gains — has been set aside.

But the EPA’s low-NOx rule remains, added panelist Andrea Lukas, the director of product management for the North American on-highway business at Cummins

“We’ve heard from high-level officials at EPA that’s sticking, so we need to prepare for that now,” she said.

The upcoming federal standard will tighten heavy-duty NOx limits to 35 milligrams, or 0.035 g/bhp-hr, starting Jan. 1. Hillman described the change as an approximately 80 percent reduction in NOx compared with current levels. That shift is substantial, even though the core diesel technology path of diesel oxidation catalysts, diesel particulate filters and selective catalyst reduction aftertreatment will remain largely familiar.

For school buses, that means diesel is not going away anytime soon, but the next generation of engines will be more complex, more tightly controlled and, almost certainly, more expensive.

“Speaking for International, we’ve been fairly direct that we are we’re very bullish on diesel … it’s hard to beat the efficiency of the diesel combustion cycle … diesel’s got a very enviable track record in position,” Hillman added. “I think it’s reasonable to expect diesel efficiency to still be applicable into the 2040 and beyond realm.”

Costs Less Than Early Numbers but Still Higher

A year to 18 months ago and even at the STN EXPO East conference in March, many fleets heard dire projections about price spikes for 2027-compliant vehicles. Hillman explained those early figures assumed not only new hardware but also much longer federal emission warranty and “useful life” requirements — in some proposals, up to 10 years.

He said roughly half of the anticipated price increase was tied to added hardware and design changes, while the other half came from extended emission warranties and the costly validation work to ensure engines would still meet the 35 mg NOx limit a decade after production.

More recent signals from EPA suggest warranty and useful-life requirements may revert closer to today’s norms, such as five years or 100,000 miles in the heavy-duty space. If that holds in the final rule, Hillman said fleets can roughly “cut in half” some of the largest price increases they heard discussed last year.

Still, the technology required to hit 35 mg NOx rule has its costs. Student transportation directors should budget for higher acquisition costs for 2027 and newer diesel buses, even if the final price tags fall short of the early worst-case scenarios. Exact numbers will not be clear until the EPA’s rulemaking language is finalized.

Fuel, DEF and Performance: Less Disruption than 2007, 2010

On performance, both Cummins and International stressed that fleets should not expect the kind of fuel-economy and drivability disruptions seen in the 2007 and 2010 emission changeovers.

Lukas said the focus is now building on mature architectures rather than introducing unproven concepts. Larger catalysts, new heating strategies to address cold-start NOx, and packaging changes are being paired with redesigned, lighter engine blocks and combustion improvements.

Lukas said Cummins is targeting fuel efficiency improvements on its new platforms and weight neutrality once lighter engine components and larger aftertreatment systems are balanced. She also said the company aims to keep diesel exhaust fluid (DEF) consumption in a similar range to today’s levels.

“We are utilizing a belt‑driven alternator, so pretty simple technology on the engine, and so that powers heaters in the aftertreatment … trying to simplify it as much as possible by using known designs,” she explained.

Hillman said International’s S13 powertrain is engineered to be fuel-economy neutral and weight neutral with the 2027 regulations in most applications. He expects DEF consumption to rise modestly — on the order of one percentage point relative to fuel, rather than a dramatic jump.

For school buses, that could mean routing, refueling infrastructure and gross vehicle weight ratings may not require wholesale redesigns. Instead, DEF logistics and range assumptions should be revisited once final product specifications are known.

Emissions Training and Tools

One message that came through clearly for maintenance managers: Training cannot wait.

Lukas said Cummins will begin rolling out technician training for 2027 products over the next one to two months, with materials pushed through OEM and dealer channels. She urged fleets to take every available opportunity to get technicians trained early, especially around new service tools.

For fleets running Cummins-powered trucks and buses, one major shift will be the retirement of Cummins Insight on the model-year 2027 and beyond fuel-agnostic HELM platforms. Instead, Cummins will rely on Guidanz as its primary diagnostic and service interface, with expanded digital capabilities, including portals, over-the-air diagnostics and remote calibration updates.

International, which carries over roughly 90 percent of the hardware in its S13 powertrain from current products, expects less disruption in its own toolchain. But Hillman echoed Lukas on the need for ongoing technician and driver training to keep pace with more sophisticated electronics and emissions controls.

Don’t Wait on Pre-Buys

Hillman and Lukas also warned that the back half of 2026 is likely to be production-constrained, as fleets across multiple sectors pull forward purchases to avoid first-year 2027 NOx rule pricing and complexity. This year’s State of Sustainable Fleets report unveiled Monday at ACT Expo stated that manufacturers are already selling out new build slots for the third and fourth quarters of 2026.

While the panelists said they do not expect a pre-buy on the scale of 2007 or 2010, both Cummins and International anticipate enough “front-loading” of demand to stress supplier capacity. In practice, that means school bus orders for the 2026–2027 school year could compete with a crowded market, especially for certain configurations.

Article written with the assistance of AI session transcript.

Related: Updated: EPA Seeks to Expand Fuel Scope of Clean School Bus Program
Related: Amid ‘Unprecedented Degree of Uncertainty,’ CARB Proposes Two Pathways for Emissions Regulations
Related: Micro Bird Officially Opens U.S. Manufacturing, School Bus Production Already Underway

The post Tighter 2027 EPA NOx Rules Put Fleets on the Clock appeared first on School Transportation News.

LAS VEGAS – As the school bus industry awaits the return and final awards of the Clean School Bus Program, propane and battery-electric continue to offer the most consistent operational cost savings.

That was the verdict of the 2026 State of Sustainable Fleets report produced by TRC Clean Transportation Companies and released this morning at the opening of ACT Expo. The published conclusions are derived from a national survey of light-, medium- and heavy-duty fleet operators across not only the school sector, but transit, refuse, delivery, freight, utility, municipal, and private contractors. The report also relied on industry interviews, market data, policy and funding analysis, and lifecycle and cost analysis.

Propane autogas — including renewable propane, which ACT News and the Propane Education and Research Council previously reported is projected to reach 300 million gallons produced by 2030 — and electric arrive at lower total cost of ownership in different ways, the report highlights.

Propane school buses traditionally cost about 10 percent more upfront to purchase than diesel counterparts. The price of EPA’s new rule expected to be updated next month would have resulted in additional costs of $8,000 to $18,000 for each new diesel vehicle. Discussions at last month’s STN EXPO East provided similar figures. But depending on how the pending 2027 federal NOx regulations update is rewritten, increased costs tied to diesel warranties and end-of-life provisions could be cut in half, according to a panel Monday morning on EPA27, with speakers Andrea Lukas of Cummins and David Hillman of International.

The speakers noted that the low NOx requirement of 0.035 g/brake-hp-hr remains with the effective date of Jan. 1, 2027 still ineffect. The separate issue of GHG and the prior regulation in effect mandating the use of battery-electric in California Air Resources Board states to be addressed with the new rule.

Daily operations are more immediately impacted by fuel prices amid the Iran war. The survey found that Midwest school districts were paying $1.31 to $1.90 per gasoline gallon equivalent, or 47- to 63 percent less than gasoline, to fuel their propane school buses. The U.S. Department of Energy said private propane fueling nationwide averaged $2.91 per GGE in January 2025.

Meanwhile, diesel prices at the pump fell $0.05 to a national average of $5.35 per gallon and gasoline increased by 7 cents to $4.12 per gallon, according to the U.S. Energy Information Administration. The State of Sustainable Fleets report found that propane Autogas delivers 50-percent lower daily fuel costs than diesel and 40 percent lower than gasoline.

Overall, 39 percent of the fleets surveyed recovered operational costs savings compared to vehicles replaced by propane.

In terms of GHG emissions, the responding fleets reported that propane offered a 59-percent reduction in California compared to gasoline. Like battery-electric, propane emits zero pounds of sulfur dioxides, according to the U.S. Department of Energy’s AFLEET data. However, that is where the similarities to propane end.

Electric school buses of course emit nothing from the tailpipe. In fact, they don’t have tailpipes. Electricity for charging in California offered a 59-pecent reduction in lifecycle GHG emissions last year compared to diesel. Propane, while reducing NOx by over 90 percent compared to diesel (including biodiesel blends and renewable diesel), emits nearly 640 percent more CO2. It emits slightly higher PM10 than diesel and same levels of PM2.5, the especially fine particles of soot that are most dangerous to children.

Tips for Making Battery-Electric Work

The report forecasts that medium- and heavy-duty electric vehicle registrations — which set a record last year — will fall in 2026 due to the loss of the EV tax credits and “pivots announced by manufacturers.” Registrations of electric school buses was up 60 percent, despite the absence of EPA Clean School Bus Program funding but with continued state support in California, New York and Maryland among others. And electric school bus registrations were drastically better than anemic growth in electric big trucks.

EVs are showing improved TCO. Fifty-seven percent of the fleets surveyed reported operational cost savings on medium-duty electric vehicles compared to the vehicles they replaced. The biggest savings occur on routes that fit electric duty cycles, managing vehicle charging and limiting maximum loads. For example, the report found that fleets can also save 30 percent by shifting to off-peak charging cycles, and doubling or tripling charging windows can cut capital and fueling costs by more than half.

Additional best practices include right-sizing charging equipment, maximizing charging windows and charging multiple vehicles per station.

Costly charging infrastructure remains a challenge, but funding assistance continues, despite the termination of the federal EV credit. The report cited a $6 billion investment by electric utility member companies of the Edison Electric Institute to support charging infrastructure through consulting services, customer rebates, make-ready infrastructure, and end-to-end charging solutions.

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Overall, 54 percent of the fleets surveyed said the plan is to increase usage of EVs in the next two years. In the school bus sector, the report cites S&P Global Mobility data showing that 2,289 new electric school buses were registered last year, a 59-percent increase from 2024.

The U.S. Environmental Protection Agency had yet to announce the latest and final funding opportunities under the five-year, $5-billion Clean School Bus Program at this writing. But the remaining $2.7 billion to be awarded will result in more electric school bus orders over the coming years, as well as propane and likely diesel. In addition to California and New York, which have large funding programs to try and meet their mandates that school buses be all-electric over the next two decades, the report cites increased state funding elsewhere, such as new programs in Illinois, Michigan, New Jersey and New Mexico.

Despite the Lion Electric bankruptcy and consolidation of operations to solely serve Quebec, the State of Sustainable Fleets reported positive news for electric school bus manufacturing. It cited Blue Bird’s all-time record revenue and profit posted in the fourth quarter and full year of 2025. Thomas Built Buses also announced its first Type D electric school bus, which is now available to order. IC Bus continues manufacturing and selling its CE Series electric and is offering bundled consulting, financing and maintenance services.

Diesel Continues On

The State of Sustainable Fleets report cited an American Trucking Associations blog in November that the EPA Clean Trucks Plan, which was set to reduce NOx by more than 80 percent and PM by 50 percent for 2027 model year engines, will remain largely unchanged.

A final rule was expected this spring but no announcement had been made at this writing.

“All major manufacturers have developed at least one HD engine capable of meeting those requirements,” the report states.

The report at ACT Expo suggests the final rule may remove warranty and useful life provisions that are expected to increase new diesel vehicle costs in the range of $8,000 to $18,000, with the Cummins-International session earlier Monday again indicating those figures could be less. The new final rule from EPA will eventually result in more specific cost figures.

Still, a “pre-buy, no-buy” dynamic is expected this year and next. The report states that manufacturers are already selling out new build slots for the third and fourth quarters of 2026.

As the industry awaits the Clean School Bus Program announcement and its expected incentives for using biodiesel and renewable diesel, the report found 56 percent of fleets used one of these drop-in fuels, more than double the number from 2023. Twenty-one percent reported utilizing both biodiesel and RD.

Benefits of using RD, the report confirmed, are improved cold-weather performance over biodiesel and fewer diesel particulate filter changes while realizing maintenance savings of approximately $0.015 to $0.02 per mile.

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What About CNG, Hydrogen and … Hybrids?

The report also covered CNG, hydrogen and hybrids. But CNG is no longer manufactured as an option for the school bus sector, and hydrogen as yet to be offered as a viable power plant. The school bus industry did test the applicability of hybrids a decade ago and shortly thereafter abandoned those efforts. But hybrid is showing some promise for tractor-trailer trucks, the report notes.

“Adoption of a new technology is almost always driven by a combination of regulation, economic savings and incentives,” Patrick Couch, senior vice president of technical services for TRC Clean Transportation Solutions, told School Transportation News last week. “For hybrid technologies, OEMs will be focused on high-fuel use applications and applications where they are allowed by regulations and operationally more suitable than alternatives. School buses may be a secondary or tertiary focus for hybrid product offerings.”

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The U.S. Environmental Protection Agency (EPA) held the first of three webinars to share information on the proposed expansion of eligible fuels under the  revamped Clean School Bus Program (CSBP) and to solicit comment from student transportation stakeholders.

The EPA webinar on Tuesday highlighted last week’s Request for Information, which seeks public comment on the feasibility of adding biodiesel and renewable diesel as fundable fuels. A source familiar with the program told School Transportation News following EPA’s announcement of the RFI that the inclusion of liquefied natural gas and hydrogen, which are not currently available options for school buses, satisfy language contained in the 2021 Infrastructure Investment and Jobs Act that created the CSBP.

EPA did not provide a date for the unveiling of the next CSBP funding round, but representatives indicated an announcement would be made following the public comment period, which remains open until early April.

Several webinar participants commented during the webinar on stated EPA focal points of the new funding round. One industry professional recommended that EPA limit the number of entities that are considered to be third parties allowed to work with school districts to secure grant funding. Another participant pointed out that regulatory language can confuse the terms sales order and sales receipt, as the verbiage can result in a reimbursement to a a “poor” school district that instead needs the funds up front.

A representative of school bus dealer noted that some school districts are unable to apply for Clean School Bus Program funds because they don’t have 2010 or older model-year school buses to retire, which the regulatory language calls for.

Other participants championed electric school buses in light of EPA’s new focus on funding more biofuel blends, renewable diesel and propane that increase tailpipe emissions, even if nominally. Another participant said propane makes the most sense for his district’s fleet, citing a concern for the cost of battery replacements in electric school buses.

Wednesday’s webinar is designed to give school districts and bus companies the next steps in finalizing clean school bus projects funded by the 2023 rebate program with an overview of the close out form.

A March 10 webinar will share additional information on the 2023 project close outs EPA said is necessary to complete programs “effectively and efficiently while also ensuring they meet the conditions of their funding opportunity.”

Specifically, EPA said it is targeting potential waste, fraud and abuse by sharing guidance school districts and bus companies should use as they wrap up their projects.

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The U.S. Environmental Protection Agency is issuing a request for information from school bus industry stakeholders as it seeks to add biodiesel, renewable diesel (RD) and liquefied natural gas (LNG) as funding options to a revised Clean School Bus Program.

EPA also said it will not be awarding funds for the 2024 CSB Rebate Program. “EPA thanks applicants for their interest and encourages them to apply for the new grant program,” EPA said in a press release Thursday. “The agency will provide more details on the 2026 grants and eligibility requirements in the near future through a Notice of Funding Opportunity.”

In a follow-up email sent by School Transportation News asking for clarification on foregoing the 2024 rebate awards and if those same applications would be recycled, EPA referred to its original statement.

Meanwhile, Thursday’s RFI also mentions hydrogen as an eligible fuel listed by the Investing in Infrastructure and Jobs Act, which created the five-year, $5 billion fund. But there are currently no hydrogen school buses in production. The same goes for liquefied natural gas, which differs from propane. The IIJA also mentions CNG, which won a handful of awards, but manufacturers don’t currently produce that fuel option, either.

Diesel-powered school buses do exist in large numbers nationwide, estimated at about 80 percent of the national fleet of approximately 450,000 vehicles. Many operate with biodiesel blended with regular diesel. The RFI specifically states EPA seeks information on B20, or 20 percent biofuel blend with diesel.

Renewable diesel, or RD, is different from biodiesel as the former is produced by a hydrotreating process, making it a hydrocarbon fuel. Because it is otherwise nearly identical to petroleum diesel, RD is a drop-in fuel alternative that diesel engine manufacturers certify for use in their engines without voiding warranties. But RD is more expensive than petroleum diesel except in California, Oregon, New Mexico and Washington, where Low Carbon Fuel Standard credits are at play.

Electric school buses are not a focus of the RFI because EPA said it has sufficient information on its infrastructure, availability and performance.

EPA added electric school buses have accounted for 90 percent of Clean School Bus Program awards to date, and the next funding round should target other allowed alternative fuels “to allow for the maximum number of affordable bus choices to fit school districts’ specific needs.”

What’s in the RFI?

EPA is asking the current availability and anticipated purchasing within the next year to five years of biodiesel, RD, E85 flex fuel, CNG, LNG, propane or any other biofuel and if those school buses are fueled at the school district facility, an offsite private fueling station, or an offsite public station. EPA also wants to know about fuel supplier arrangements.
Specifically for biodiesel and RD, EPA is asking for details on how the blends or drop-in fuels are used.

It requests information on fueling system components, pricing, construction and installation requirements, performance, domestic content, and other practical considerations.

The RFI also states EPA wants information on how it can further safeguard taxpayer dollars. The agency completed an internal review to assess financial management practices and said it uncovered inconsistent documentation, incomplete adherence to reporting an award conditions, improper or premature drawdowns of funds, and insufficient internal controls by certain awardees, including for profit recipients.

EPA said it is “evaluating additional safeguards and conditions for for-profit entities,” which includes audits of financial statements and conflict of interest policies. It is also considering verification tools or documentation to ensure appropriate bus usage and routes before funds are disbursed; milestone-based payment structures, reimbursement-only models, or phased disbursement mechanisms tied to verified delivery to reduce risk and improve accountability; and enforcement mechanisms such as repayment obligations or clawback provisions in cases of nonperformance, noncompliance, or misuse of funds.

The Clean School Bus Program is set to expire at the end of the current fiscal year, which would require the remaining $2 billion that has yet to be awarded needing to rollout over the next six months.

Public comments are due within 45 days of EPA publishing the RFI in the Federal Register. A webinar is scheduled for March 3.

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RNG Remains the Most Immediate, Cost-Effective Way to Decarbonize Heavy-Duty Transportation Washington, DC – Last calendar year marked the fifth consecutive year that commercial fleets in the State of California fueled by bio-CNG (renewable natural gas, or RNG) achieved a carbon-negative transportation outcome, according to a report released today by The Transport Project (TTP) and RNG Coalition alongside partner California Renewable Transportation Alliance (CRTA). Lowest …

The post RNG-Fueled Fleets in California Mark Five Years of Carbon-Free Outcomes appeared first on Alternative Energy HQ.

Bergen, Norway February 17th, 2025 — Since going into service in 2015, the MF Ampere has now sailed an astonishing distance equivalent to 17 times around the equator on batteries alone, solidifying its place as a groundbreaking achievement in sustainable maritime transport. A decade on and the Ampere continues to showcase the transformative potential of electric …

The post World’s first fully electric ferry celebrates 10 years of success appeared first on Alternative Energy HQ.

The international biofuels industry has found an unlikely ally in the waste management sector. A heightened global urgency to reduce greenhouse gas emissions (GHGs) is incentivizing renewable fuels production like never before, but the International Energy Agency (IEA) recently warned of an impending feedstock shortage for biodiesel, renewable diesel and biojet (aviation fuel) production, estimated …

The post Merging Net Zero With Zero Waste: One solution to biofuel feedstock shortage appeared first on Alternative Energy HQ.