RENO, Nev. — For years, vehicle-to-grid (V2G) technology has been promoted as the next big opportunity for electric school buses. The promise largely has remained unfilled until recently.

Yet school buses transport students in the morning and afternoon, then spend hours parked with large batteries that could support the electric grid, power facilities during outages, or even generate revenue. As utilities seek more flexible energy resources and school districts search for ways to maximize taxpayer investments, V2G offers a glimpse of a future where school buses serve dual roles: transporting students and supporting the electric grid.

But what does V2G look like in practice?

At STN EXPO West conference on Sunday, school transportation and utility leaders shared one of the industry’s most detailed real-world case studies, offering a candid look at the opportunities, challenges and lessons districts should understand before investing in electric school buses and bidirectional charging infrastructure.

The conference session, “Unlocking the Potential of V2G in School Fleets,” brought together representatives from Fremont Unified School District near San Francisco, California, and its utility, Pacific Gas & Electric (PG&E). The two are partnered to deploy one of the state’s most advanced electric school bus energy programs. Their collective message was clear: Vehicle-to-grid technology holds significant promise, but success depends on planning, partnerships and realistic expectations.

Grant Jones, director of consultant Updraft Energy and moderator of the discussion, noted that school buses are frequently cited as one of the strongest use cases for V2G because of their predictable schedules, long dwell times and large battery capacities. As real deployments emerge, fleets can now learn from operational experience rather than theory.

Start With the Utility, Not the Electric School Buses

If there was one takeaway repeated throughout the session, it was the importance of engaging the local utility as early as possible.

“Every yard is going to be different,” said Fremont USD Transportation Director Erny Epley. “There are no two yards alike, and no two power availability from the grid that’s alike.”

He advised school districts to involve utilities before internal enthusiasm builds around electrification goals that may not be feasible given local infrastructure constraints.

PG&E Product Manager Rudy Halbright echoed that advice, stressing that site characteristics can dramatically affect the economics of V2G.

“The more you start planning this long before you even choose the site, ideally, the more options you’re going to have,” he said. “[It’s] always good to talk to the utility really early in your process, even before you have a yard, if you can.”
Location matters. Residential areas with significant evening energy demand may create stronger opportunities for utilities to compensate fleets for exporting power during peak periods. Industrial locations may offer fewer opportunities to generate value through grid services.

V2G Is About More Than Selling Power

Halbright outlined a spectrum of energy-management strategies that school districts can pursue, beginning with simple charging optimization and progressing toward full vehicle-to-grid participation.

Many fleets can achieve savings simply by charging during lower-cost utility periods or implementing smart charging systems that automatically manage charging schedules. More advanced programs can provide demand-response services or export electricity back to the grid when energy is most valuable.

“School buses are a huge opportunity in filling that gap,” Halbright explained, referring to the evening period, when solar generation declines but electricity demand remains high. “These are already paid for. So. it’s a natural.”

Beyond financial returns, V2G also introduces resiliency benefits. Electric school buses could help keep schools operating during outages or provide emergency power for community services.

Fremont’s Biggest Lesson: Nobody Can Do V2G Alone

Fremont USD’s project began almost unexpectedly. Epley recalled receiving a last-minute call about a grant opportunity and deciding to participate without fully understanding the scope of the undertaking.

“I’m glad I did,” he said. “It’s been a long, arduous but very, very rewarding journey.”

Today, Fremont operates 14 electric school buses, including four capable of bidirectional charging, which is required for V2G. The district expects its electric fleet to grow to 22 buses, with 12 eventually able to export power back to the grid.
The district’s experience reinforced the need for broad stakeholder engagement.

“You can’t do this alone,” Epley told attendees. “It’s going to take a massive effort across many organizations.”
His recommendation was to “cast a wide net” by involving transportation staff, facilities personnel, business officials, accounting departments, utilities, project managers and technology providers from the beginning.

He also introduced a memorable phrase for transportation directors navigating these projects: “You’re going to have to be a communication superhero.”

Be Ready for Delays and Complexity

While electric school buses themselves are becoming more familiar to fleets, bidirectional charging introduces additional layers of technical, regulatory and administrative complexity.

“One of the biggest mistakes that I’ve ran across was I had an unrealistic expectation about the implementation process and what that timeline looked like,” Epley shared.

He compared the experience to introducing major routing or telematics software systems. Fleet leaders often focus on the result while underestimating the amount of work required to reach deployment.

“Take small bites,” he advised. “Don’t be afraid to ask questions.”

Halbright offered a similar assessment from the utility perspective. Supply-chain disruptions, regulatory hurdles and evolving standards have slowed projects across California.

“If I could do it all over again, I would spend more time modeling things,” he said. “It’s worth spending that time to make sure this makes sense.”

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Related: Federal Legislation Looks to Promote V2G for Electric School Buses
Related: V2G Findings Announced From New York State Electric School Bus Project
Related: V2G Legislation Looks to School Buses to Help Power Electric Grid

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Understanding the Financial Case of V2G

The economics of V2G remain one of the biggest questions facing school districts.

Fremont estimates its participation could generate roughly $1,000 annually per bus enrolled in V2G programs, though the project remains in its early stages.

Still, speakers cautioned that V2G should not be viewed as a quick revenue source.

Current projects often depend on grants, utility incentives and other funding opportunities to offset infrastructure costs. However, Epley and Halbright both said equipment costs continue to decline, making future deployments more attractive.
Halbright encouraged districts not to wait for perfect conditions.

“Be creative,” he said. “If there is something, grab it.”

Perhaps the most important lesson for transportation leaders is that electric school buses increasingly represent more than vehicles.

“There is no way the best use for a school bus is to sit there parked most of the time if it could do something else,” Halbright said.

Written with the assistance of AI and a session transcript.

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RENO, Nev. – An STN EXPO West session by Jason Yan, director of sales operations for RIDE, delivered a comprehensive and engaging account of the evolution of electric school buses, tracing the journey from the first bus delivery to a position of industry leadership.

Yan opened “Green Talk With Ride: How It Started, How It’s Going” Sunday morning with a lighthearted “football, not soccer” anecdote, connecting the spirit of World Cup perseverance to the company’s story. He described the early Type D Dreamer school bus, initially equipped with coach seating, and the subsequent introduction of the Type A Achiever and Type C Creator. The Achiever and Creator each offer ADA and non-ADA versions, hydraulic air brake systems, battery capacities of 155, 282, and 255 kWh.

Blade battery technology, recognized with STN awards and now standard in Type C buses, is set to expand to other models, enhancing safety through rigorous testing—including penetration tests, extreme weather trials from 115 degree to -24 degree, and structural assessments like the Colorado Rack Test, Kentucky Pole Test, and side intrusion tests.

Yan highlighted battery performance and the avoidance of thermal events, sharing real-world mileage reports for Type A ranging from 120 to 200 miles with varying state of charge (SOC) remaining. He underscored the company’s conservative estimates and culture: “Promise what you can do and do what you can promise,” inspired by a Long Beach Transit inspector in California. The nearby Lancaster factory, home to 750 dedicated employees, has delivered over 500 units, out of 1500 ordered, including the largest V2G school bus deployment in Northern California. Expansion began in California in 2023, extended to Oregon and Washington in 2024, and continues with state certification and cooperative RFPS contracts beginning in 2025.

Yan emphasized ongoing bus modification, redesigns, validation, and OEM leadership, ensuring quiet, beautiful, robust structure buses. Partnerships with school districts, community support, and employee dedication were celebrated, with invitations to tour the Lancaster facility. He thanked the STN Media team and partners, noting achievements like STN EXPO innovation awards for the Achiever in 2023, the Creator in 2024, and blade battery technology in 2025. Future plans include continued facility and battery production expansion.

“The last five years were about proving electric buses are one available option for school districts,” Yan said. “And the next five years is about making them the industry standard.”

The session blended technical innovation, community engagement, and a vision for sustainable school transportation.

This article was written with the assistance of a live transcript and AI.

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Related: Green Talk With RIDE: How It Started, How It’s Going
Related: WATCH: BYD at ACT EXPO
Related: Ride and Drive, Technology Product Demos Return to Texas in November

The post Green Talk With RIDE: How It Started, How It’s Going appeared first on School Transportation News.

If you’re a school transportation leader, you’ve likely seen the electric school bus market expand rapidly in the last few years. Federal funding programs, state mandates, manufacturer investments and emerging technologies have accelerated the transition to zero-emission transportation and provided school districts more pathways to electrifying their fleets.

As the market continues to mature, school bus leaders are navigating a changed landscape based on evolving policies, funding programs, and local operational practicalities.

Recent shifts in the market may have altered timelines and funding expectations, but electric school bus adoption is still gaining momentum. Districts across the country are putting electric school buses on the road, manufacturers are expanding their lineups, and states are refining their timelines to meet fleets where they are. As the market matures, the advantage shifts to districts that plan ahead. Thoughtful planning can turn this evolving landscape into an opportunity for fleets, allowing each district to transition on its own terms and in line with operational, budgetary, and infrastructure needs.

Electric School Bus Adoption Delivering Benefits

Nationwide, school districts are deploying electric school buses in their communities and seeing meaningful results. Deployments are demonstrating that electric school buses can effectively support local priorities, deliver cost savings, and unlock funding opportunities, with or without state mandates.

In Virginia, Fairfax County Public Schools has continued advancing solar energy and electric bus deployment despite shifting federal policy conditions as part of ongoing sustainability initiatives. District leaders have cited that they’ve saved $100 million in costs from their sustainability efforts, which can be reinvested back into classrooms and the district. Rural districts are also exploring innovative approaches, like in Oklahoma, where electric school buses were integrated to save money on fuel and maintenance costs. With half of Shawnee Public School’s fleet electrified, they’ve already saved $40,900 on fuel costs alone during the 2024–2025 school year. Meanwhile, on the East Coast, Massachusetts is launching vehicle-to-grid (V2G) programs that will allow parked electric vehicles, including school buses, to provide electricity back to the grid during periods of high demand.

Some fleets are motivated by sustainability goals. Others are focused on reducing fuel costs, improving energy resilience, accessing available grants, or preparing for future regulatory requirements. All of them are moving forward, applying clean transportation technology to get kids from Point A to Point B.

Industry Investment Signals Long-Term Confidence

Alongside growing deployments, manufacturers and technology providers continue investing in electric school bus development. Companies are introducing new products, building out manufacturing capabilities, and developing technologies intended to address operational challenges associated with fleet electrification.

Thomas Built Buses recently introduced Wattson, the company’s first electric Type D school bus, expanding electric offerings for districts seeking larger-capacity vehicles. Micro Bird opened a new manufacturing facility in Plattsburgh, New York, and in 2025, Blue Bird announced its new, American-made battery pack for all electric buses that will improve real-world performance. V2G technologies are also continuing to mature. Pacific Gas & Electric Company, in partnership with The Mobility House and Polara, announced the commissioning of one of California’s most advanced V2G electric school bus fleets, marking a major milestone in clean transportation and grid resilience.

These investments require substantial capital commitments and long-term planning horizons. The continued pace of product development suggests that manufacturers and companies continue to see opportunities and make long-term investments in the electric school bus market.

A Changing Policy Landscape

As electric school bus deployment moves from early adoption toward broader implementation, policymakers are increasingly focused on how to align timelines, funding, infrastructure, and technical assistance with real-world fleet needs. New York extended its requirement for all new school bus purchases to be zero-emission by 2027 to 2032 and extended its full fleet transition by 2035 to 2040, citing concerns raised by school districts and transportation providers regarding infrastructure readiness, vehicle availability, and procurement timelines.

Similarly, Connecticut modified its requirement that all school buses operate on zero-emission or alternative fuels by 2035, instead adjusting long-term targets to require that 90 percent of school buses be zero-emission by 2040. Connecticut lawmakers noted that changes in federal funding and subsidy availability have altered the economics of fleet electrification, creating monetary challenges for school districts attempting to plan major vehicle replacement projects.

Notably, these changes reflect a growing recognition that electric school bus adoption requires realistic timelines, adequate funding, and strategic planning to succeed.

Additionally, at the federal level, the U.S. Environmental Protection Agency’s (EPA’s) Clean School Bus Program is also entering a new phase. Created through the Infrastructure Investment and Jobs Act, the program authorized $5 billion through Fiscal Year 2026 to support the replacement of older school buses with cleaner technologies. It’s become one of the largest sources of funding for school bus replacement projects nationwide and has played a significant role in accelerating electric school bus deployments.

Earlier this year, EPA leadership announced plans to revamp the program. While the program remains authorized and previously awarded grants and rebates stay in place, agency officials have indicated that future funding priorities may expand to include a broader mix of technologies permitted under the statute.

Together, these developments illustrate a broader trend: Policy support for cleaner school transportation continues to exist, while implementation timelines, funding structures, and technology priorities are evolving to reflect real-world deployment experiences and the practical needs of school districts.

Adoption Advances Across the Country

As electric school bus adoption grows, so does the industry’s understanding of what it takes to successfully deploy and operate these technologies at scale. Many of the recent policy changes stem from practical deployment challenges rather than a rejection of cleaner transportation technologies.

For many school bus fleets, purchasing a vehicle is the easy part; charging infrastructure, utility upgrades, facility planning, staff training, and adjustments to maintenance and operational procedures are where challenges may come into play. These elements can take time to implement, particularly for large districts or transportation contractors operating multiple facilities.

As policymakers evaluate adoption timelines, many are recognizing that successful implementation depends on more than setting ambitious targets. The New York and Connecticut examples highlight a growing recognition that fleet transitions occur within broader operational realities. Setting appropriate mandate timelines can provide districts with the time needed to address infrastructure and funding challenges while continuing to evaluate how electric school buses fit into their long-term transportation strategies.

For school transportation leaders, these policy changes underscore the importance of flexibility. Policy timelines may shift, but fleet replacement needs, maintenance requirements, and transportation demands continue regardless of legislative changes.

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Related: Report Highlights Propane and Electric TCO for School Bus
Related: Maryland Pilot Program Aims to Offset Cost of Electric School Buses
Related: EPA Inspector General Flags Oversight Gaps in Clean School Bus Program as Agency Eyes Revamp

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What Policy Changes Mean for School Transportation Leaders

For transportation directors and fleet operators, today’s environment presents an opportunity to strengthen long-term fleet planning. Successful fleet transition planning requires flexibility, and as policies, funding opportunities, and technologies continue to evolve, districts can benefit from creating plans that adapt along with them. Because vehicle replacement cycles often extend over many years, and infrastructure projects require significant coordination, proactive planning remains one of the most effective ways to prepare for future opportunities.

Playing the long game pays dividends. Ongoing fleet transition planning remains one of the best ways to stay prepared for future policy, funding, and technology developments. Districts that maintain current fleet inventories, evaluate route suitability, assess facility needs, and understand potential infrastructure requirements will be better positioned to respond when grants, rebates, or incentive programs become available. Transportation leaders may also consider revisiting fleet transition plans periodically to account for changing conditions. Funding availability, technology performance, utility requirements, and procurement timelines can all evolve over time.

Infrastructure is critical. Regardless of policy changes, charging infrastructure development often requires significant coordination among districts, utilities, contractors, and local agencies. Even districts that are not actively procuring electric buses today can benefit from engaging their utility early to better understand infrastructure requirements, grid capacity considerations, and potential deployment pathways. Establishing these relationships in advance can help districts avoid delays and position them to move quickly when funding, policy, or operational priorities align.

A growing number of states have public planning programs available to school districts that can help them stay at the ready, so they aren’t left behind when policy and funding landscapes shift. Districts are encouraged to take advantage of these resources early in the planning process, even if they have not yet committed to electric school buses. Many of these programs, such as Cal Fleet Advisor, MassCEC ACT Advisory Services, and the New York State Energy Research and Development Authority Fleet Electrification Planning, are cost-free to districts and provide comprehensive fleet electrification planning, laying out a customized, living roadmap to help fleet leaders make informed decisions about electric school bus and infrastructure adoption.

The Future of Electric School Bus Adoption

Recent headlines surrounding delayed mandates, revised deadlines, and federal program changes have raised understandable questions from the school transportation industry. While some policies and funding programs are evolving, the fundamental drivers behind electric school bus adoption remain strong.

School districts across the country continue deploying electric school buses, manufacturers continue investing in products and facilities, technology providers continue advancing solutions, and government agencies’ planning programs are helping fleets prepare for the future. Increasingly, districts are pursuing electrification not only because of mandates, but because electric school buses can help achieve local goals related to cost savings, operational efficiency, sustainability, and student health.

As the landscape evolves, stakeholders in the school transportation industry can help maintain momentum by continuing to invest in fleet planning, infrastructure readiness, workforce development, and access to funding opportunities. Organizations like CALSTART are here to help support the industry as fleets navigate this evolving market. Fleets that lay the groundwork now will be better positioned to make informed decisions, advance when opportunities arise, and capture the benefits of electric school buses for their students and communities.

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Rachel Chard is a recognized leader in the clean transportation sector, currently serving as the Head of Bus Programs at CALSTART. In this strategic leadership role, she is responsible for overseeing the organization’s comprehensive vision for the adoption of zero-emission school and transit buses.

The post Understanding Today’s Electric School Bus Market appeared first on School Transportation News.

New data shows that nearly three-quarters of all registered school buses are powered by diesel, even as the U.S. Environmental Protection Agency Clean School Bus Program is expected to extend federal funding to include the fuel.

The S&P Global Mobility TIPNet data for December 2025 indicates internal combustion engines account for 98 percent of all power in U.S. commercial vehicles, 76 percent being fueled by diesel. Gasoline is powering 23 percent followed by 0.5 percent natural gas and propane. Electric vehicles account for the other 0.5 percent.

A deeper analysis conducted this spring by the Engine Technology Forum (ETF) found that school districts are opting to replace their aging school bus fleets with diesel. The ETF said 72 percent of the 2010 and newer model-year school buses are diesel, a 5-percent increase from 2023. The diesel buses rely on SCR and particulate matter filters, the latter introduced in 2007, to reduce levels of PM and nitrogen oxide, or NOx, by more than 90 percent compared to pre-2007 engines.

“Fleet turnover is one of the most effective tools we have to improve air quality today,” said Allen Schaeffer, executive director of ETF, in a statement last week. “The increasing share of 2010 [and older] model-year diesel buses show that school districts are making practical, cost-effective investments that deliver immediate environmental and operational benefits for students.”

Meanwhile, diesel school buses make up over 87 percent of the total fleet of school buses. The ETF analysis found about 18 percent of the national fleet regardless of fuel are pre-2007 model years.

The analysis also found that electric school buses account for only 1.1 percent of the national fleet. Meanwhile, ETF said a news report last year indicated propane school buses make up about 5 percent of the national fleet.

Diesel School Buses to Further Benefit from Federal Rulemaking, Funding?

The school bus and larger commercial truck industry await a new final rule on 2027 NOx and PM levels from the EPA, which is expected this summer. EPA is also expected to announce the return of the five-year, $5-billion Clean School Bus Program, which has been on hiatus since January of last year. The agency indicated in an RFI published earlier this year that it was considering adding biodiesel and renewable diesel as fundable fuel types.

“If we get back to the idea that an EPA program on school buses is to bring the most benefit to the most school districts to make school bus emissions cleaner, using renewable fuels ranks high on the list of accessible and affordable and good options,” Schaeffer, told School Transportation News.

Additionally, Congress is currently debating increased funding through the Diesel Emissions Reduction Act. Senate bill 2235 and would also increase spending to $100 million for each fiscal year 2026 through 2029, according to the Congressional Budget Office. H.R. 2140 contains the same spending amounts and remained in the Energy and Commerce committee.

An online STN survey of transportation directors conducted in April indicated that only 11 percent of 193 respondents are prioritizing electric or alternative school bus purchases for the upcoming school year compared to the previous school year. Diesel school buses also continue to be the most common fuel type, according to registrants of next month’s STN EXPO West conference who are signed up to attend the Transportation Director Summit.

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Related: Survey: Half of School Districts Paying At Least 6% More for Diesel
Related: Propane Grabs Spotlight as Fleets Seek Less Expensive, Cleaner Fuel
Related: Engine, Truck Manufacturers Support EPA Easing Derate of SCR Diesel Emissions Controls

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Still, some school districts are maintaining previous plans to phase out diesel and expand electric and propane school bus purchasing. Cypress-Fairbanks Independent School District in the Houston, Texas area — the largest school bus operation in the state — has no current plans to purchase diesel school buses as it focuses on propane and electric, said Bobby Williams, assistant director of transportation for fleet maintenance.

He said propane now represents 41 percent of the district’s fleet, with diesel coming in second at 34 percent.

Pittsburg Unified School District near San Francisco, California, operates a small fleet of 33 buses, with nine powered by renewable diesel.Matthew Belasco, the district’s director of transportation, cited California’s 2035 mandate to transition to zero-emissions school buses as a leading reason why fellow districts have moved away from diesel, despite technically still being able to purchase them for the next nine years.

The district currently operates seven electric school buses and 17 propane.

“Most state and federal funding programs have been focused on supporting zero-emission and, in some cases, low-emission alternatives, like propane,” he added. “We got some funding for propane a few years ago. Generally, though, districts that seem to be looking to replace buses have moved toward electric or propane options.”

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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.

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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

The post Alternative to Fueling Discomfort appeared first on School Transportation News.

The post Do you plan on applying for a Clean School Bus Program grant once the EPA announces a return of funding? appeared first on School Transportation News.

The U.S. Environmental Protection Agency Office of Inspector General says lessons from the first Clean School Bus rebates and grant rounds should inform future funding, especially as $2.37 billion remains available.

EPA is expected to announce the next CSBP funding rounds later this month or in June.

Ask a transportation director what makes a clean school bus project successful, and the likely answer goes beyond the bus itself. Directors share the importance of coordinating with utilities, ensuring charging infrastructure is ready, managing vendor timelines, or tracking federal and state funds.

A new summary report from the EPA Office of Inspector General, released April 1, points to that same balancing act. The report stated that the EPA has made improvements to the CSBP since its first rebate round in 2022. Earlier weaknesses in application review, recipient verification and fund management should continue to inform how the agency awards future dollars.

The report reviewed five prior EPA Office of Inspector General reports related to the agency’s management of Infrastructure Investment and Jobs Act funding for the 2022 Clean School Bus Rebates program. It identified two overarching issues: The application and selection process, and the management of funds. The summary report does not include new recommendations, but the OIG said the findings could help guide EPA decision-making for future CSBP awards, especially as money is still on the table.

Congress provided $5 billion over five years through IIJA to replace older diesel school buses with cleaner models, including propane, compressed natural gas and zero-emission buses. EPA has described the program as a way to reduce emissions in buses, loading zones and the communities they serve.

Report Highlights Rebate, Grant Awards to Date

At the beginning of fiscal year 2026, the CSBP had $2.37 billion remaining. As of February, EPA said it intends to revamp the program and issued a Request for Information seeking input from fleet operators, manufacturers, school officials and energy producers. The comment period closed April 6. The 146 filed comments included those from all major OEMs, dozens of school districts and other concerned citizens.

As of last November, EPA had awarded $865 million through the 2022 rebate program to 368 school districts for 2,328 replacement buses. The 2023 grant program awarded $950 million to 65 recipients for 2,696 buses, while the 2023 rebate program awarded $815 million to 458 school districts for 3,241 buses. All awards leaning heavily toward electric school buses. Find the breakdown of fuel funding on STN’s Green Bus Resources page.

But the EPA Inspector General said the initial process lacked adequate controls to verify certain applicant and bus eligibility information. Prior reports found EPA did not require enough documentation to verify applicant identity or the accuracy of information submitted, and applicants were not required to directly attest to the truthfulness of their applications. The OIG also said the agency had not established verification protocols before awarding funds.

That matters for districts because federal clean bus projects often require coordination among multiple parties, including school systems, contractors, original equipment manufacturers, utilities and infrastructure providers. The OIG noted that some eligible contractors were allowed to apply or initiate applications on behalf of eligible entities without their knowledge.

Another concern centered on whether local conditions were adequately considered, particularly for zero-emission buses. Under the IIJA, EPA must consider factors such as route length and weather conditions when awarding clean school bus funds. The OIG said prior reports found EPA was not ensuring applicants seeking electric buses had suitable local conditions, and it also cited utility delays as a potential risk to timely deployment.

Fund management was another issue flagged by the OIG. The report said EPA did not adequately monitor bus deployment status or recipient use of 2022 rebate funds, despite previously committing to do so. It also found that 2022 guidance did not clearly indicated for recipients whether CSBP funds should be kept in separate accounts, whether interest could be earned on those funds, or how any interest could be used.

According to the OIG, some recipients kept CSBP awards in accounts that included other funds, which increased the risk that program money could be used for other purposes.

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Related: EPA ‘Revamping’ Clean School Bus Program
Related: Future of Clean School Bus Program?
Related: Updated: EPA Seeks to Expand Fuel Scope of Clean School Bus Program
Related: Inspector General Report Cites Inefficiencies in EPA Clean School Bus Program
Related: EPA Investigator General Cites Clean School Bus Program Inefficiencies, Utility Delays

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EPA has since made changes. For the 2023 rebate round, the agency required electric bus applicants to submit a Utility Partnership Agreement verifying that districts had notified their local utility. EPA also updated guidance to require recipients to manage funds so they would not accrue interest, keep funds in separate accounts and use them only for eligible expenses. In 2024, EPA added a School Board Awareness Certification requiring applicants to verify that school boards were notified of intended program participation.

The OIG said EPA has completed corrective actions addressing several prior recommendations and was still implementing others. The report states that the agency had completed, or was in the process of implementing, corrective actions for all 11 prior recommendations reviewed.

EPA also reported taking additional oversight steps beginning in February 2025, including site visits to rebate recipients, reviews of concerns related to use of funds and weekly project status reports to the chief financial officer.

The post EPA Inspector General Flags Oversight Gaps in Clean School Bus Program as Agency Eyes Revamp appeared first on School Transportation News.

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.

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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.

The post Propane Grabs Spotlight as Fleets Seek Less Expensive, Cleaner Fuel 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.”

The post Report Highlights Propane and Electric TCO for School Bus appeared first on School Transportation News.