Round 2 of the EPA’s Clean School Bus Program: Five Things to Know About the Application
Clean School Bus Program: How is Round 2 Different from Round 1?
If you are in the K-12 public education sector, you’re probably aware of the EPA’s Clean School Bus Program, which will provide $5B over five years (through FY 2026) to replace existing (mostly diesel) school buses with zero-emission and low-emission models. The first funding round of the program opened in summer 2022: the second funding round just opened on Monday, April 24.
The first thing to know: Round 2 is VERY different from Round 1. You can find program information for Round 2 on the EPA’s website here, but we’ve pulled a few of the key differences between it and Round 1 into a chart, and expanded on them in this blog.
The most important takeaway? You should apply for Round 2! Even if you didn’t win in Round 1, or if you think you have a low probability of winning funding in Round 2, apply anyway. This is a significant funding opportunity that could help your children and communities, and applying signals to EPA that you are committed to improving your fleet.
Five Things to Know About the Clean School Bus Program Round 2 Application
Round 2 of the EPA’s Clean School Bus Program is a competitive grant application. In our previous blog, we explained, broadly, what the federal government looks for in competitive grant applications. Bottom line: To be successful in a competitive world, you will need to do significantly more project planning prior to submitting an application for Round 2 than you did previously, and you’ll need to tailor your approach to the new application requisites and associated scoring system.
Our team has combed through the Round 2 program information and pulled out five key things to know.
1. When Does the EPA Clean School Bus Program Round 2 Open and End?
Round 2 of the Clean School Bus Program will distribute a total of $400M for zero-emission and low-emission school buses. The application opened on April 24, 2023, and will run through August 22, 2023. Unlike Round 1, which was administered at the federal level, Round 2 applications will be reviewed by the 10 regional EPA offices depending on where your district is located (find your EPA region here). In Round 2, districts can apply directly to the program, or they can work with a third-party provider as the lead applicant.
Key Dates and Timelines:
- Submit Questions & Comments: July 26th
- Submission Date: August 22nd at 11:59 pm ET
- Notification of Selection: November 2023- January 2024
- Awards Released: February – March 2024
2. New for Round 2: Sub-Programs
For Round 2, EPA has released two sub-programs – a School District Sub-Program and a Third-Party Sub-Program. It will be up to each district to determine which program they would like to apply to. EPA will review applications for both subgroups separately based on a detailed scoring system and other factors (geographic diversity, number and size of awards, environmental benefits, use of different business models) in determining applicant selection. Note: districts can partner with and receive support from companies in either sub-program. The district just has to be the lead applicant in the School District Sub-Program.
A few key differences in the sub-programs are below.
School District Sub-Program
- Eligibility: Public School Districts (including public charter schools) and Tribal Applicants
- Audience: Large single-fleets that may have been limited by the 25 bus maximum in EPA Round 1
- Number of buses requested: Between 15 and 50
Third-Party Sub-Program
- Eligibility: Non-profit school transportation association and school bus dealers, Original Equipment Manufacturers (OEMs), school bus service providers, and private school bus fleets that provide student transportation services
- Audience: Third Party applicants to apply in partnership with school districts
- Number of buses requested: Between 25 and 100
3. Round 2 of the Clean School Bus Program is Designed to Accelerate Scale
The EPA thinks about grants and rebates differently. Round 1’s rebate program was designed to have a very low barrier to entry, to make the application easy so that it would be accessible to all school districts, including those with few resources. Because the barrier to entry was low, the EPA capped the number of buses for each application at 25.
Round 2’s grant program will be a significant lift for many districts, requiring detailed project planning and evaluations of project benefits and community outcomes. The challenging application and high burden of proof of a successful project creates a high barrier to entry. The reward for the effort is that EPA has designed the awards for scale, with a greater emphasis on fewer and larger projects. Rather than a simple 25 bus cap, as in Round 1, Round 2 has a bus minimum (15 buses) and maximum (50 buses) for each application led by a school district, and a 25-bus minimum and 100-bus maximum for each application led by a third-party provider.
4. Funding Levels Are the Same, But Applicant Pools Are Different
Although Round 2 will distribute less money than Round 1 ($400M vs. almost $1B, respectively), the EPA has kept the funding levels for buses and chargers the same ($395k for a bus and charger, although how much of that total goes to the bus and how much goes to the charger is up to the school district, which is a change from the previous approach where EPA specified set amounts for the bus and charger). As in the earlier round, the EPA will still divide Round 2 applicants into priority and non-priority categories, but it has updated the definition of priority districts: Large urban districts that were left out in Round 1 can self-certify as low-income this time based on specific guidance, and only “rural – remote” (local code 43) districts will be able to apply (vs. Round 1, in which districts that were both “remote” and “distant” could apply). Check out the FAQs on our website for additional details (here).
5. Competitive Grant Scoring Will Be Key
This is COMPLETELY different from Round 1. Applications will be awarded up to 120 points based on how well they can demonstrate things like: Cost-sharing (i.e., show that a district is working with partners who will contribute financing to the project); relevant experience (i.e., that a district has undertaken electrification projects in the past); and a well-considered path for a successful deployment (i.e., that a district can show how it will measure real metrics and why its project has a good chance of succeeding). Districts that qualify as priority will be awarded extra points, but where Round 1 advantaged priority districts in the selection process, in Round 2, priority qualification is one criteria among many.
An Experienced Partner Can Materially Advantage an Application
Round 2 of the EPA’s Clean School Bus Program is going to be a big lift. Some districts might prefer to apply for Round 2 on their own. In that case, our EPA and grant experts are happy to answer questions, share our expertise, and serve as a free educational resource – just drop us a note at epa@highlandfleets.com.
The scope of the competitive application, the complexity of electric fleet deployment, and the ongoing reporting requirements for operational projects (among other things) make partnering with an experienced third-party electrification provider a smart choice. We are happy to partner with districts that want to maximize their chances by working with the most experienced fleet electrification-as-a-service provider in the U.S. If you’d like assistance with your application, we can sign a non-binding agreement to work together on an application – please email epa@highlandfleets.com to request a form and we can get started.
