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Grants/Funding

   Toyota Motor Corporation to provide funding for school districts for clean school buses.

There are multiple ways to fund school bus retrofit and replacement programs. Below is a list of resources that will help identify potential funding. Watch this web page on Grants and Funding for updates.

EPA Funding Sources
Other Federal Funding Sources
State and Local Funding Sources
Other Sources of Funding
Tips for School Districts Seeking Grant Funds


EPA Funding Sources

  • 2005 Proposed Expansion for Clean School Bus USA

    The federal budget proposal President Bush submitted for fiscal 2005 includes a $65 million request for the Clean School Bus USA Program. This funding would expand federal support for school bus retrofit and replacement programs by $60 million and would greatly enhance the ability of Clean School Bus USA partners to meet the goal of upgrading the nation's school bus fleet by 2010. The fiscal 2005 budget will not be finalized until it is passed by Congress and signed by the President.

  • 2004 Clean School Bus USA Demonstration Grants

    Building on the 2003 Clean School Bus USA demonstration grants program, Congress again allocated $5 million for school bus retrofit and replacement grants in 2004. EPA announced the selection of 20 projects for funding in June, 2004. The 2004 demonstration grants are funding a diverse set of demonstrations around the nation.

    EPA did not solicit new applications for the 2004 funds, but rather drew from the pool of applicants that did not receive funding in 2003. The pool included nearly 100 project proposals with requests totaling more than $55 million. Decisions were based on criteria outlined in the 2003 grants solicitation and on evaluations conducted during the 2003 competition.

  • 2003 Clean School Bus USA Demonstration Grants

  • To support EPA's efforts to reduce pollution from school buses, Congress allocated $5 million for a cost-shared grant program designed to assist school districts in upgrading their bus fleets. This grant competition closed on August 1, 2003. EPA received over 120 applications requesting nearly $60 million in funds. Seventeen demonstration projects were selected for funding. The projects are demonstrating a variety of approaches to reducing pollution from school buses. These demonstrations will involve about 4000 buses and remove over 200,000 pounds of diesel particulate matter from the air over the next 10 years. Read  more...

    For more information on this closed solicitation: [ 92KB PDF ]

  • EPA's Voluntary Diesel Retrofit Grant Program

  • (Maintained by EPA's Office of Transportation and Air Quality)

    The solicitation for applications under the Diesel Retrofit Program Assistance Agreement Sensitive Populations Initiative for FY 2004 closed on July 2, 2004. For more information on this solicitation: http://www.epa.gov/air/grants_funding.html#trans.

  • EPA's Smart Growth Program - Funding Sources

  • (Maintained by EPA's Office of Policy, Economics, and Innovation)

    The Smart Growth Program is an alternative to sprawl and urban decay, and is an innovative approach to addressing EPA's environmental mandates. The goal of smart growth is to work with communities, businesses, industry, state and local officials and others to shape land use and growth so that it has minimum impact on environmental, economic, and community health. There are some grant programs that may support school bus projects:


  • EPA Performance Partnership Grants
    (Maintained by EPA's Office of Regional Operations and State/Local Relations)

    Performance Partnership Grants (PPG) are multi-program grants made to state or tribal agencies of EPA funds allocated for categorical grant programs. They are voluntary and provide States and Tribes the option to combine funds from two or more categorical grants. Under regulatory authority (since 1996) this policy covers sixteen program grants (including air pollution control). They are funded from EPA's State and Tribal Assistance Grants appropriation.

  • EPA Program Grants (Guidance)

  • (Maintained by EPA's Grants Administration Division, Region 5, and Purdue University)

    In addition to defining Federal grants, this site provides a table of actual use of EPA grants administered. Historically, EPA has funded both state and local programs in all environmental media. A number of grants are targeted towards research and demonstration projects, while others support various program activities.

  • EPA' s Financial Tools and List of Grants

  • (Maintained by EPA's Grants Administration Division, Region 5, and Purdue University)

    This link provides the description, advantages, and limitations of the EPA grant funding process. It also provides a list of grants to choose from, with links to each grant program.

  • Transportation-Related Grants Database (TRGD)
    (Maintained by EPA's Office of Transportation and Air Quality)

    TRGD is a clearinghouse of information on transportation and air quality related projects funded by EPA. The database provides information on more than 50 EPA funded transportation-related projects from around the nation. Many of these projects fall under transportation-related categories such as market incentives, voluntary measures, sustainable development, public education and outreach, transportation control measures, and ozone action programs.

Other Federal Funding Sources

  • Government-wide grants information and resources Exit EPA disclaimer
    (Maintained by the US Federal Highway Administration)

    Comprehensive Web site with information about finding and applying for all federal grant programs.

  • Congestion Mitigation and Air Quality Program (CMAQ)

    The Federal Highway Administration of the Department of Transportation manages the CMAQ Program. The primary purpose of the CMAQ program is to fund projects and programs in areas with air quality programs which reduce transportation-related emissions. This listing provides a variety of CMAQ information in your area which may include your city or state's CMAQ budget, on-going or potential CMAQ projects, CMAQ grant funding agencies and contacts. Look to this site for ideas in implementing retrofit projects and funding information. Simply select any state to obtain its CMAQ information. (Note: This may not be the most current budget information. Please contact the State office for budget update if available.)

  • Transportation Equity Act for the 21st Century
  • Exit EPA disclaimer
    (Maintained by the US Federal Highway Administration)

    The Transportation Equity Act for the 21st Century (TEA-21) authorizes expenditures of $218 billion from 1998 to 2003 to fund the development and maintenance of the nation's transportation infrastructure, while protecting the environment and enhancing economic growth. The largest public works program ever authorized, it is having a significant impact on the air quality programs and issues being addressed by the EPA, the U.S. Department of Transportation, and state and local agencies. EPA also has more information on TEA-21.

    • Clean Fuels Formula Grants
    • Exit EPA disclaimer
      (Maintained by the US Federal Transit Administration)

      The Clean Fuels Formula Grant program is a new formula grant program created by the Transportation Equity Act for the 21st Century (TEA-21) intended to assist nonattainment and maintenance areas in achieving or maintaining attainment status. Under the program, maintenance and nonattainment areas, as defined by the EPA, can apply for funds to acquire clean fuel vehicles, to re-power or retrofit engines for clean fuels operation, and to construct or improve facilities to support these vehicles. The legislation defines clean fuel vehicles as those powered by compressed natural gas, liquefied natural gas, biodiesel fuels, batteries, alcohol-based fuels, hybrid electric, fuel cell and clean diesel, and other low or zero emissions technology that sufficiently reduces harmful emissions.

  • Catalog of All Federal Domestic Assistance
  • Exit EPA disclaimer
    (Maintained by the US Department of Health and Human Services)

    The Catalog of all Federal Domestic Assistance (CFDA) is a government-wide compendium of all 1,425 Federal programs, projects, services, and activities that provide assistance or benefits to the American public and is available from the General Services Administration.

    • Catalog of Federal Domestic Assistance: Air Pollution Control Program Support Exit EPA disclaimer

      This listing of air pollution controls funding programs is provided to assist State, Tribal, Municipal, Inter-municipal, and Interstate agencies in planning, developing, establishing, improving, and maintaining adequate programs for prevention and control of air pollution or implementation of national primary and secondary air quality standards.


  • Federal Funding Tables Exit EPA disclaimer
    (Maintained by the Community Transportation Association of America [CTAA])

    The Federal Funding Tables outline grants (such as CMAQ) and other forms of funding for community transportation in each state. All of the funding levels in this section of the Resource Guide are for FY 2000.

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State and Local Funding Sources

  • Carl Moyer Clean Engine Incentive Program (California only) Exit EPA disclaimer

  • (Maintained by the California Air Resources Board)

    The Carl Moyer Program is administered by the California Environmental Protection Agency's Air Resources Board (ARB). Funds are distributed through local air districts. Incentives, in the form of grants for private companies or public agencies operating heavy-duty engines in California, will cover an incremental portion of the cost of cleaner on-road, nonroad, marine and locomotive engines.

  • Oregon Non-point Source Pollution Control Facilities Tax Credit Exit EPA disclaimer

  • (Maintained by the Oregon Department of Environmental Quality)

    The State of Oregon offers a tax credit for Oregon taxpayers who purchase a "pollution control facility" (includes any equipment or device) used to reduce or control air pollution. The tax credit applies to retrofit technologies verified by the EPA's Voluntary Retrofit Diesel Program. Information about the application procedures, fees, and assessment of cost can be found following this link to Oregon's Pollution Control Facilities Tax Credit Program.

  • Dallas, Texas Adopt-a-School Bus Dallas Exit EPA disclaimer
  • This is a cooperative partnership between the American Lung Association, EPA, State Agencies, local elected officials, and corporate sponsors was established as a nonprofit grant program to aid local school districts replacing their aging, diesel school bus fleets with new "clean fuel" buses. The program is administered by an independent Steering Committee and operates under the auspices of the American Lung Association.

  • Texas Emission Reduction Plan (TERP) Exit EPA disclaimer

  • (Maintained by the Texas Natural Resource Conservation Commission)

    The Texas Emissions Reduction Plan (TERP), is a comprehensive set of incentive programs aimed at improving air quality in Texas. The Texas Commission on Environmental Quality administers TERP grants and other financial TERP incentives. Additional financial incentive and assistance programs are administered by other state agencies. The TERP was not funded in 2002.

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Other Sources of Funding

  • In addition to the sources listed above, some school bus retrofit programs have been funded through state-negotiated settlements in legal actions against companies that violated state environmental laws. Please contact your state environmental agency about the possibility of receiving money resulting from an enforcement action.


  • Toyota Motor Corporation has announced plans to provide financial assistance to school districts interested in retrofitting school buses and purchasing ultra-low sulfur diesel fuel. Parties interested in these retrofits may contact Toyota and obtain more information by calling 1-703-934-3040 or going to Toyota's Clean Buses for Kids website: http://www.cleanbusesforkids.com/Exit EPA disclaimer

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Tips for School Districts Seeking Grant Funds

  • Notify us of your interest so we can contact you when new information or funding becomes available. Please call 734-214-4780 or email CleanSchoolBusUSA@epa.gov.
  • Begin preparing now for future opportunities:
    • Browse the Clean School Bus USA web site to familiarize yourself with the range of options for reducing school bus pollution
    • Check the federal government's comprehensive grants web siteExit EPA disclaimer for information about applying for federal grant programs.
    • Assess the school bus fleet(s) you wish to upgrade by compiling information about vehicle and engine models, ages, annual mileage, and so on.
    • Identify local resources that could be used to satisfy matching fund requirements.
  • Take action now by implementing no cost or low cost practices that reduce emissions and exposure to diesel exhaust. Read more...

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 Key Topics:
Transportation and Air Quality

Overview: Pollutants and Programs

Consumer Information

On-road Vehicles and Engines

Nonroad Engines, Equipment, and Vehicles

Fuels and Fuel Additives

Voluntary Programs

Transportation and Air Quality Planning

Modeling, Testing, and Research

                                  

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