We analyze what 188 school districts shared in a survey about fuel prices, the impact of world events and the upcoming Clean School Bus Program, timely discussion planned for STN EXPO West in July, and a California school bus driver recognized by the state.
With 10 years’ experience in the industry, Griffin Scott, supervisor of fleet advisory and analytics at RTA: The Fleet Success Company, discusses technology and AI trends, fleet management solutions, the impact of bell times, electrification developments and more.
While some districts are still waiting for the promise of electric buses to catch up to reality, others are already reaping the benefits of cleaner, more cost-effective school transportation right now.
Across the country, more than 1,000 school districts are turning to propane autogas buses and seeing the benefits firsthand: healthier rides for students, happier drivers behind the wheel, and real cost savings that make a difference in the classroom. From public health experts to veteran drivers and transportation directors, those closest to the issue see how propane autogas is transforming student transportation for the better.
Healthier Rides and Cleaner Communities
For districts looking to make an immediate impact on air quality and student health, propane autogas buses are a smart choice. Compared with diesel, propane autogas reduces nitrogen oxides (NOx) by up to 96 percent and virtually eliminates particulate matter (PM). These pollutants contribute to asthma, respiratory issues, and other serious health concerns. By cutting emissions in the neighborhoods, school parking lots, and bus stops where children are most exposed, propane autogas can improve air quality.
Bailey Arnold, director of healthy air solutions for the American Lung Association (ALA), shared on a recent School Transportation News (STN) webinar why acting now, with proven technology like propane autogas, matters more than ever.
“Doing something today is really vital in the fight to combat all these climate change impacts that we’re seeing,” Arnold said. “When you can’t breathe, nothing else matters. So, anything we can do to lower emissions is going to benefit our health.”
In addition to reducing NOx and PM, Arnold emphasized that the cumulative effects of carbon output are significant and avoidable. According to NASA, CO2 emissions can remain in the atmosphere for 300 to 1,000 years. Arnold also pointed to information from Clean Fuels Alliance America that found that every five years of delay in introducing cleaner options requires reducing 13 times the emissions in the future.
That’s why it’s important to start today. Propane autogas reduces lifecycle greenhouse gas emissions by more than 24 percent compared with diesel, and renewable propane cuts that even further, reducing emissions by up to 80 percent depending on the feedstock. That means over a 10-year lifespan, a single renewable propane autogas school bus can cut carbon emissions by 1,600 tons compared with diesel.
“There’s a lot of benefit to using technologies like propane — fuels like propane autogas — to reduce those emissions so that we’re lowering its impact and protecting our lung health,” Arnold said.
Driver-Approved Experience
School bus drivers are on the front lines of student transportation. They know what makes a bus safe, reliable, and comfortable for themselves and for their passengers. And they know how propane autogas buses deliver on those benefits every day.
Drivers across the country consistently report that propane autogas buses provide a smoother ride with stronger acceleration than diesel, which is a major improvement in stop-and-go traffic. The buses are also quieter than diesel, so drivers can better hear activity inside the bus for improved safety.
Most importantly, drivers say they can instantly notice the difference in the smell of a propane autogas bus compared with diesel. With propane autogas, there’s no odor, no fumes, and no more headaches from harmful emissions. It’s why veteran drivers like Dawn Tiemann of Henrico County Public Schools in Virginia firmly believe in the benefit of propane autogas buses.
“There’s no smell, no fumes — nothing for the children to smell,” she said. “It’s so quiet, sometimes I have to ask myself, did I even start the bus?”
For transportation directors, that driver satisfaction can translate into stronger staff retention and more consistent operations, especially at a time when many districts are facing staffing shortages.
Savings That Help the Budget Go Further
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Students and drivers aren’t the only ones benefiting from propane autogas buses. Transportation directors are seeing the impact where it matters most: in their budgets. Propane autogas school buses provide the lowest total cost of ownership thanks to reduced fuel and maintenance costs. Most districts report up to 50 percent savings on fuel costs alone compared with diesel. Those savings quickly add up and can be reinvested into other important areas like classrooms, driver pay, or fleet expansion.
Amy Rosa, director of school safety and transportation at Wa-Nee Community School Corporation in Indiana, has seen the value firsthand. Her district operates a mixed fleet that includes 25 propane buses.
“I was excited about buying buses for less money and realizing that the overall cost of ownership was going to be significantly lower,” Rosa shared during the STN webinar.
Those savings aren’t just theoretical. They’ve helped Wa-Nee keep extracurricular travel free for students.
“We offer all of our extracurriculars at no cost to students, so they don’t have to pay for travel,” Rosa said. “Every year we save money so that our kids can continue in sports and music programs with no fees there. That’s our goal. To save money for our students and our taxpayers.”
A Proven Solution That’s Working Today
While some school districts are waiting for the next wave of clean technology to arrive — and delaying significant emissions reductions in the process — others are already leading the way with propane autogas. Across the country, school transportation leaders are proving that a smarter, cleaner fleet doesn’t have to be years away. It can start now.
Tony and Ryan discuss takeaways from the ACT EXPO this past week in Las Vegas, which took a deep dive into clean fuel choices, autonomous vehicles, robotics in manufacturing, electrification interest and more.
Director of Transportation Anthony Jackson joins us to discuss the operational, cost and health benefits of propane usage at Bibb County School District in Georgia.
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.
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.
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.
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.
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.
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.
Comparative chart of emissions by fuel type. Source: U.S. Department of Energy AFLEET, via World Resources Institute Electric School Bus Initiative.
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.
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.
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.”
CONCORD, N.C. – The Green Bus Summit at STN EXPO East featured school bus manufacturers discussing products, technology, innovations and support for school districts looking to run cleaner, safer and more efficient school bus operations.
Blue Bird: EV Myth vs. Reality: What’s Actually Driving Adoption?
“We’ve taken the lead on the EV side,” declared Brad Beauchamp, EV product segment leader for Blue Bird, reviewing how the company entered the field eight years ago.
Noelle White, channel partner marketing specialist for Blue Bird, led attendees through a gamified quiz on common electric school bus myths.
Attendees correctly identified answers to questions such as what regenerative braking does (charges the battery while slowing), time required for infrastructure upgrades (six to 18 months), and how much of a total EV project cost is tied to infrastructure (25 to 40 percent).
Although cold weather reduces electric school bus range by 10 to 30 percent, Beauchamp noted that technology advances and operational techniques allow for improvements in this area.
Level 1 chargers are commonly used by most districts today, but Beauchamp recommended Level 2 chargers, which he said are best for overnight charging.
Infrastructure readiness most commonly delays electric school bus projects since the work “doesn’t stop on the first wave of buses,” Beauchamp cautioned.
Operational planning significantly shifts during the move from diesel to electric due to routes and weather, to name a few factors, Beauchamp reminded attendees.
“As you start to use [electric school buses], there is a learning curve,” he said. “On the great side for EV, a lot of things can be corrected without even leaving your yard.”
Viewing electric bus deployment as equivalent to a straightforward vehicle purchase is a common pitfall, explained Beauchamp. Instead, he said districts must consider infrastructure, utilities, load planning and route modeling early in the process. He added that data gathered from onboard telematics helps transportation directors in this crucial planning phase.
“It’s going to take a team,” he said, especially as not all aspects of electric school bus implementation happen sequentially.
In fact, the bus purchase from the OEM is “the easy part,” he quipped.
“Eighty percent of routes in the U.S. can be covered with an EV,” Beauchamp continued.
He advised putting an electric school bus on shorter routes until success is achieved, and then operations can branch out.
“Figure out what your long-term strategy will be,” he said.
When districts purchase an electric school bus with federal funds, they are required to decommission and scrap an old diesel bus rather than keep it as a spare, Beauchamp cautioned. He advised planning for scalability, not simply pilot projects.
Lastly, he reviewed EPA Clean School Bus program updates, noting that state and local funding opportunities also help keep electric school bus projects afloat. He advised performing preventative maintenance on both the bus and charger.
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Brad Beauchamp, EV product segment leader for Blue Bird, speaks at STN EXPO East 2026.
IC Bus: Leveraging Technology Solutions for Efficient Fleet Management
Matt Milewski, market segmentation director for IC Bus, reviewed how First Student announced last September that it was outfitting its fleet of 46,000 school buses with Samsara technology.
Jason Kierna, vice president of information technology for First Student, spoke to the company’s customer-focused motivation rather than just adding technology for its own sake.
“We’ve got thousands of customers and all of them want to use technology in a different way and that’s why it’s more about the process for us than it is about the technology,” he said.
He explained how the new AI-powered HALO offering combines vehicle inspections, driver coaching, AI cameras, predictive analytics, and more to improve safety for students and transparency for parents.
“Parents today are expecting more objective evidence when incidents occur,” agreed Scott Jobe, head of public sector strategists for Samsara.
He noted that AI is “maybe not the best when you deal with human interaction or conversation, but when it comes to objectivity, we think of AI as like a force multiplier.”
Kierna elaborated that hazard alerts or safety behavior remediation that HALO provides, can help school bus drivers proactively self-correct so a reactive supervisor conversation is unneeded. He added that some First Student drivers now refuse to drive a bus without the technology.
Kierna related an incident in which a bus was struck at over 60 mph and said the driver would have been injured if she had not been wearing her seatbelt, which she had just put on properly due to the AI powered camera’s alert. Jobe added that another district saw a reduction in risky behaviors by drivers, illegal passing incidents, bus crashes and maintenance costs due to the AI technology.
“What does safety mean to your organization?” Kierna rhetorically asked the audience.
Milewski emphasized IC Bus’ support for what Jobe termed a “frictionless experience” in technology integration for school district and bus contractor clients. Kierna reiterated the commitment of all three companies to overall safety for students.
Kierna underscored that empowering drivers and lobbying for safety initiatives are two of the many aspects that are directly related to the effective gathering and leveraging of data.
“Integrated technology is the future,” Jobe agreed. He shared a pothole detection feature in development, in which information gathered via onboard cameras, bus location and G-forces the bus undergoes can be sent directly to cities for repair escalation.
“We have so much data that we can turn into real actionable insights,” he said.
In answer to an attendee question on staff who may struggle with technology, Kierna said the AI assistant helps put things in plain language for users.
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Matt Milewski, market segmentation director for IC Bus.
Jason Kierna, vice president of information technology for First Student.
Thomas Built Bus: Let’s Talk Fuels – What Legislative Uncertainty Means for School Transportation
Mark Childers, direct sales and technology sales manager for Thomas Built Buses, reviewed current challenges and uncertainty surrounding fuel choice. “You’ve got to make some decisions,” he said.
“Where we stand today is that in 2027 all of the manufacturers are subject to EPA’s low NOx rule, so that is the new multi-pollutant criteria rule that’s going to deal with NOx and particulate matter that is coming in 2027,” explained Alissa Rector, policy advisor for Thomas Built Buses parent company Daimler Trucks North America. “Even though EPA’s greenhouse gas regulations have been rolled back in 2027, we are still subject to the existing greenhouse gas phase 2 standard at [the National Highway Traffic Safety Administration] NHTSA so there’s not a lot of change that you’re going to see on the greenhouse gas side compared to where we are today.”
Jim Ellis, director of pupil transportation for Henrico County Public Schools in Virginia, has 600 school buses and is receiving 25 electric buses in July. When managing his bus fleet, he said he must balance getting the best bang for his buck with environmental concerns for cleaner air.
“I think that the key lesson is to just know change is going to continue to happen and just continue to take one step at a time,” declared Brittany Barrett, deputy director of operations and implementation for the World Resources Institute. She advised staying on top of fleet data, so it is easier to pivot and make decisions.
Rector discussed the differences between local pollutants like NOx, Volatile Organic Compounds (VOCs) and particulate matter, as opposed to greenhouse gases like carbon and CO2 which enter the atmosphere.
Whitney Kopanko, vice president of school bus sales and marketing for Sonny Merryman, noted that the Thomas Built Buses Virginia dealer has put 300 electric school buses on the road. She spoke to dovetailing student transporter priorities of getting students to and from schools with community and regulatory pressure for cleaner air.
She and Ellis agreed that it’s crucial to provide numbers and data to stakeholders during decision-making processes.
WRI provides helpful tools and resources, Barrett informed attendees. Kopanko added that AFLEET suite from the U.S. Department of Energy can be used to compare fuel types. Fuel choice is a hyper localized decision based on what each district needs, she stated.
Though most school buses currently run clean diesel and will continue to, Rector prognosticated that the future will be mixed fuels with interesting developments in hydrogen. “Any future roadmap is going to have a lot of different options on it,” she declared.
Diesel fuel doubling in price due to the war in Iran is currently juxtaposed with conversations on propane or electric implementation, said Ellis.
While changing fuels may look tempting, Kopanko advised considering availability of alternative or drop-in fuel, infrastructure needs, driver and mechanic training, and the extra accountability involved in abiding by rules for government subsidies.
Barrett said electric buses have the range to meet 90 percent of the routing requirements for districts she works with, but infrastructure is the biggest question mark. “It’s not insurmountable but it requires a plan,” she said.
She praised Sonny Merryman’s electrification project with Dominion Energy in Virginia.
Panelists advised working closely with dealers, gathering all available fleet operation data, considering urban versus rural needs to determine what type of bus goes where, taking part in vigorous training and education, and keeping abreast of the rapidly changing regulatory landscape.
They also answered questions from attendees on electric school bus range, charging time, battery degradation and V2G.
(Left to right) Alissa Rector, policy advisor for Daimler Trucks North America, and Brittany Barrett, deputy director of operations and implementation for the World Resources Institute, speak at STN EXPO East 2026.
CONCORD, N.C. – A Green Bus Summit panel during STN EXPO East discussed real-world examples and implementation tips for propane autogas in a school bus operation.
Blue Bird’s Steven Whaley, alternative fuels manager for the school bus manufacturer, first reviewed the company’s diesel, gasoline, propane and electric school bus options as well as deployment numbers, pricing comparison and clean energy statistics.
Propane, he said during Sunday’s Lunch and Learn session, has a low carbon intensity footprint, is safe enough to use for cooking and is domestically produced. Blue Bird’s propane bus, he specified, was certified to an ultra-low NOx emissions level. He added that propane buses are suited for both rural and urban settings, plus their quiet operation means students arrive at school calmer.
“The [propane] fuel system itself is very simple, integrates seamlessly just like your diesel technology does,” explained Tom Hopkins, a former Detroit-area fleet manager and current business development manager for Blue Bird’s propane school bus powertrain partner ROUSH CleanTech.
He reviewed the technical specifications of the Ford 7.3L engine powering Blue Bird’s Type C Vision bus and the complimentary training offered to operators.
Bibb County School District in Georgia started using propane school buses in 2014. Transportation Director Anthony Jackson said he was initially skeptical. Seventy percent of his 213 buses are now powered by propane, and he reported savings both at the fuel pump and maintenance costs. Propane saves him a combined 50 cents per mile over diesel, he added.
That equals a savings of $1 million dollars per year, Whaley pointed out. “These are numbers that folks just can’t ignore anymore,” he said.
Declared Jackson, “I can’t see myself venturing back to the diesel side of this because of what I’ve been able to see and what we’ve been able to realize with the propane application.”
He said once his drivers were trained on fueling, they readily accepted propane, which performs better during colder weather than diesel. Additionally, he verified that his mechanics are “ecstatic” that the propane buses are cleaner and easier to work with.
“We will do everything as a propane industry that we can … to set up your fueling for you,” confirmed Monte McLeod, account manager for Sharp Energy and representative for session sponsor Southeast Propane Alliance.
Temporary propane fueling options include a delivery driver who individually fuels the buses, or mobile trailer units parked on site. McLeod reviewed permanent fuel infrastructure where setup, permits and training are generally free to the district.
McLeod said personal protective equipment is not needed when drivers fuel propane school buses since it is “a clean, simple operation that anyone can do.” Whaley noted that the EPA does not even regulate propane seepage since it is not carcinogenic and simply evaporates into the air, in contrast to soil contamination that occurs with diesel leaks.
“There’s a number of redundant systems in place to make sure that this is the safest fuel that you can possibly put in your bus,” McLeod stated.
When school buses are on the road, Whaley noted, they can use an alternative fuel station locator via an app provided by the U.S. Department of Energy.
Jackson shared that his diesel prices doubled due to the Iran war, but his propane price recently fell. “The more you use, the less it is,” McLeod agreed.
“Get behind the wheel and drive it,” Jackson advised in response to an attendee question on staff buy-in before implementation.
Hopkins pointed out that there were several transportation leaders in attendance from school districts currently running propane buses. He suggested districts considering propane should “get their raw unfiltered feedback.”
Hamilton Southeastern Schools district leaders in Indianapolis prioritize a drive toward a cleaner, more sustainable future.
That commitment was recognized earlier this month when the district was named 2026 School Bus Fleet of the Year by Drive Clean Indiana, the state’s clean cities coalition, recognized by the U.S. Department of Energy, during the organization’s annual Breakfast of Champions in Indianapolis.
The March 16 recognition occurred alongside Work Truck Week, where industry stakeholders gathered to celebrate advancements in clean transportation. The Breakfast of Champions featured a keynote address by four-time Indianapolis 500 winner Helio Castroneves, underscoring the broader connection between performance, innovation and energy.
Zach McKinney stands next to a Hamilton Southeastern Schools bus.
McKinney previously told STN the electric transition has been a good experience, and now he and his staff have the knowledge needed to provide feedback to others. However, he added it’s hard for the district to subsidize the cost financially without the aid of grants.
“It’s not obtainable by most school districts,” he said last June, adding that he’s not going to sacrifice the purchasing two and half diesel buses for the same money it takes to buy one electric bus.
However, McKinney shared with STN last week that Hamilton Southeastern was awarded funding for nine more electric school buses.
A Maryland electric utility is launching a pilot program designed to help school districts overcome one of the biggest barriers to adopting electric school buses: Upfront costs.
The Maryland Public Service Commission approved a plan by Potomac Edison, a subsidiary of FirstEnergy serving about 285,000 customers in Maryland, to implement an $11.1 million electric school bus pilot program. The initiative will help fund the deployment of up to 28 electric school buses within the utility’s service territory.
The program comes as Maryland advances its transition to zero-emission transportation under the Climate Solutions Now Act of 2022, which requires public school systems to purchase zero-emission vehicles.
The law states that county school boards must only enter into new contracts to purchase or operate zero-emissions school buses, or otherwise electric school buses. Districts may seek exemptions if zero-emission buses cannot meet operational needs, such as route length, or if sufficient funding is not available to cover the higher upfront costs.
The EV transition is not without its challenges. Montgomery County Public Schools, the largest school district in Maryland and an early national leader in school bus electrification, recently requested approval to purchase about 140 new diesel buses to meet immediate transportation needs. According to local news reports, district officials said current electric bus technology and fleet availability have not fully met operational demands for longer routes, field trips and midday service. These reasons prompted the temporary return to conventional buses while the district continues to evaluate its long-term electrification strategy.
Funding Aims to Incentivize Zero-Emissions Adoption
Meanwhile, Potomac Edison is supporting the electric shift by covering the cost difference between diesel and electric school buses, up to $250,000 per vehicle. It is also paying for the cost of charging infrastructure and any required electrical upgrades.
In addition to financial incentives, the program will provide school districts with technical and administrative support for planning and installing charging equipment and training personnel responsible for operating the buses.
The pilot will also test V2G technology. Utilities and policymakers have increasingly pointed to V2G as a way EVs could support grid reliability while vehicles sit idle between routes. Successful use cases have been slow to proliferate throughout the industry, but recent developments point to more achievable success with V2G.
“This program is designed to help make the EV transition more practical and affordable,” said Jim Myers, FirstEnergy’s president of West Virginia and Maryland. “We’re reducing upfront costs and offering hands-on support to help school systems integrate electric buses smoothly.”
We examine the impact of the war in Iran and Clean School Bus program updates on district fuel choices, as well as a Pennsylvania school bus driver arrested after driving over 50 students while intoxicated.
We are joined by Nate Springer, vice president of market development at TRC Companies, the presenter of the upcoming Advanced Clean Transportation (ACT) EXPO. He unpacks the reasoning behind various fuel choices available to school districts today and funding options amid changes to the Clean School Bus program.
We unpack the National Action Plan for School Bus Safety, which sheds light on the non-fatal effects of illegal passing. Plus, transportation directors comment on green buses during a recent EPA Clean School Bus webinar.
Denise Donaldson, the editor and publisher of Safe Ride News Publications and a frequent trainer at STN EXPO and the TSD Conference, previews her STN EXPO East workshop on when to use child safety restraint systems (CSRS) in school buses or alternative vehicles.
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.
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.
The Federal Highway Administration (FHWA) seeks public input on a proposed modification to its waiver of Buy America requirements for electric vehicle (EV) chargers, which could impact K-12 student transportation professionals looking to use federal funds to purchase the equipment for electric school buses.
The proposal, announced Tuesday by FHWA Administrator Sean McMaster, aims to increase the domestic content requirement for EV chargers used in federally funded projects.
Currently, the waiver issued two years ago allows EV chargers manufactured in the U.S. to meet a 55-percent domestic component cost threshold. FHWA is considering raising this requirement to as much as 100 percent, meaning all components of EV chargers would need to be sourced domestically.
This change could have significant implications for school districts planning to use federal funds for EV charger acquisition or installation, when or if the EPA’s Clean School Bus Program or other funding projects return. FHWA said the proposal is part of a broader effort to support domestic manufacturing and align with federal priorities to maximize the use of American-made products in infrastructure projects.
If finalized, the new requirements would apply to projects obligated after the publication of the final notice.
Public comments on Docket No. FHWA-2025-007030 will be available through March 16 at 11:59 p.m. Eastern. FHWA said transportation professionals are encouraged to share their perspectives on the potential impact of the increased domestic content requirement, including any challenges or benefits it may present for school bus electrification projects.
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