Driving Forward on a Clean Ride for Kids

The vast majority of our nation’s 480,000 school buses run on diesel fuel, whose emissions endanger the health of the more than ​​20 million children who ride them every day. Diesel exhaust pollutants can lead to cancer, asthma and other respiratory illnesses. Moreover, asthma is one of the leading causes of school absenteeism.

Electric school buses (ESBs) are better for air quality, health and operating costs than any other type of school bus. They are successfully operating in all types of climates and in urban, suburban and rural locales—all while safely and reliably transporting students, saving school districts fuel and maintenance costs, supporting US manufacturing jobs, and creating opportunities for resiliency to extreme weather events. In response, school districts in every corner of the country are seeking the benefits of electric school buses.

The Clean School Bus Program (CSBP), a voluntary program established by the Bipartisan Infrastructure Law to provide $5 billion over five years (FY 2022–26) to replace existing school buses with cleaner options, has been the single-biggest driver of electric school bus deployment, funding approximately two-thirds of buses. As of June 2024, the CSBP has announced nearly $3 billion for 966 awards. This investment supports the purchase of more than 8,500 ESBs and charging infrastructure at more than 1,200 school districts across 49 states, 4 US territories, and Washington, DC, including 65 Tribal school districts. Together, these school districts serve 16 million students. Over 2,000 ESBs funded by the CSBP have already been delivered to school districts, and more are on their ​​way. However, recent pauses in the disbursement of federal funding are a cause for concern.

To maintain our progress in driving forward on a clean ride for kids, federal and state incentives need to continue to support school districts electrifying their fleets.

Key Recommendations:

• The US Environmental Protection Agency should disburse all awarded federal funding to honor awards made to school districts and ensure business certainty for manufacturers and dealers. Further, they should ensure that the remaining $2 billion in Clean School Bus Program funding is awarded to meet demonstrated demand and continue support for clean bus manufacturing.
• Congress should preserve tax credits and elective pay and transferability mechanisms so that school districts can access credits to achieve cost savings from electric school buses, specifically the Qualified Commercial Clean Vehicle Credit (45W) and the Alternative Fuel Vehicle Refueling Property Credit (30C).
• State governors, legislatures, and agencies should maintain and grow funding support that is essential to strengthening and complementing federal measures. Furthermore, they should maintain existing and add additional transition targets that provide important certainty to the market.
• State legislatures, public utility commissions and other governing bodies should support utility infrastructure “make-ready” programs and fleet advisory services to help support the adoption of ESBs.
• State agencies should provide supportive technical assistance and support workforce training and seek to complement funding by developing financing mechanisms through state infrastructure banks.

Driving Forward on a Clean Ride for Kids

This Expert Note is part of Igniting Innovation and Electric School Bus Initiative within Climate, Energy and WRI Ross Center for Sustainable Cities. Reach out to Sue Gander for more information.