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2020 Diesel Emissions Reduction Act (DERA) School Bus Rebates – Applications Being Accepted


We are excited to announce a funding opportunity for school bus fleets that serve public schools. EPA’s Office of Transportation and Air Quality is accepting applications nationwide for rebates to assist in replacing older, dirtier diesel school buses with new school buses certified to EPA’s cleanest emission standards. EPA anticipates awarding over $10 million in this funding opportunity. Selected applicants that scrap and replace their old diesel buses will receive a rebate of $20,000-$65,000 per bus depending on the fuel type of the replacement bus.

Important Dates

Eligible Entities

  • Regional, state, or tribal agencies including school districts and municipalities; or
  • Private entities that operate school buses under a contract with an entity listed above
  • Applications are limited to 10 buses. Fleets with more than 100 buses can submit two applications.

Selection Process

  • Lottery, with at least one selectee from each state/territory represented in the applicant pool

Eligible Old School Buses to be Replaced

  • Used to transport 10+ pre-primary, primary, or secondary school students to or from school
  • Driven 10,000 or more miles over either the last 12 months or calendar year in 2019, or have been in use 3+ days/week between 9/1/2019 and 2/29/2020
  • Owned by applicant without any active liens
  • Class 3-8 diesel-powered buses [i.e., greater than 10,000 lb. Gross Vehicle Weight Rating (GVWR)]
  • Powered by 2006 or earlier model year diesel engine (not to be confused with vehicle model year)
  • Engine and chassis must be scrapped before receiving rebate payment

Eligible Replacement Buses

  • May not be ordered prior to receiving signed EPA selection letter
  • Powered by a 2017 or newer model year engine
  • Operate in a similar manner and over similar routes as the bus being replaced
  • Be purchased, not leased or leased-to-own
  • Rebate reimbursement is $15,000 for replacement buses between 10,001-19,500 lbs. GVWR and $20,000 for replacement buses with GVWR of 19,501 lbs. or higher
  • $20,000 for diesel and gasoline
  • $25,000 for propane
  • $30,000 for CNG/LNG
  • $65,000 for battery or hydrogen electric
  • Maximum rebate funding amount per application is $300,000

Rebate Application Form and Supporting Documents

For the application form and program guide which includes detailed information on eligibility and application instructions, please visit the following website: For questions, email


Thursday, October 1, 2020 | Program opens. EPA begins accepting application submissions.
October 7, 2020 3-4 p.m. Eastern Time | Application webinar (See for details)
Friday, October 30, 2020 4 p.m. ET | Deadline for emailing applications with scans of bus titles and reg-istrations to
January – February 2021 (Estimated) | Official selection letters emailed to selectees and list of applicants that were not selected posted online
April 2021 (Estimated) | Deadline for submitting purchase orders for replacement buses
September 2021 (Estimated) | Deadline for submitting documentation of delivery of replacement buses and scrappage of old buses. EPA will send rebate payment within one month of receipt of complete materials.


Questions submitted to through October 22, including those from the webinar, will be added to this document.

EPA Reports to Congress on Benefits of DERA Program (March 23, 2016)

EPA published its Third Report to Congress: Highlights from the Diesel Emission Reduction Program (DERA). In the report, EPA provides final results from grants awarded in fiscal years (FY) 2009 through 2011 and estimated results from grants funded in FYs 2011 through 2013.

EPA reports that, overall, DERA grants have improved air quality and public health; served disproportionately affected communities; reduced climate impacts and improved fuel savings; focused on goods movement and the supply chain; generated economic and environmental activity; and responded to popular demand. In addition to preventing up to 1,700 premature deaths, the program has reduced 4,836,100 tons of carbon dioxide, 312,500 tons of nitrogen oxides, 58,700 tons of carbon monoxide, 18,900 tons of hydrocarbon and 12,000 tons of particulate matter and saved 431 million gallons of fuel. Under the DERA program, $520 million in funds have been awarded and 58,000 engines have been retrofitted or replaced; the monetized health benefits reach as high as $11 billion with 81 percent of projects targeted to areas facing air quality challenges.

For further information:

Attention Fleet Owners
Grant funds available to replace your old diesel equipment

PA-DE Diesel Truck Replacement Program

Did you know that newer and cleaner diesel equipment can lower emissions in your community, reduce fuel consumption, improve engine reliability, extend the life of equipment, and lower maintenance costs?

PA-DE Diesel Truck Replacement Program is a grant funded program that will provide up to $30,000 down payment to qualified fleets that wish to upgrade their equipment and help improve air quality in the Philadelphia and Wilmington port areas.

New cleaner diesel engines will improve the work environment for operators and can help a company stay competitive in the transportation industry – all while reducing harmful emissions.Facts about the PA-DE Truck Replacement Program:

Facts about the PA-DE Truck Replacement Program:

  • Purchase newer class 8 trucks with diesel engine model year 2013 or newer and receive up to $30,000 in down payment funds.
  • Multiple trucks can be replaced.
  • Old engines must be scrapped.
  • Down payments are provided quickly minimizing down time.

Program eligibility criteria:

  • Must serve the Philadelphia or Wilmington port community or goods movement facilities regularly.
  • Old truck engine must be between the years of 1997 – 2009
  • In order to get started, a simple application with truck information will be required.

If you are interested in participating, please contact Medessa Burian at or 301-405-7371
Program managed by Mid-Atlantic Regional Air Management Association (MARAMA)
8600 LaSalle Road, Ste. 636
Baltimore, MD 21286